Italy's Z_One Fund Closes Over €35 Million to Back AI and UrbanTech Startups

Italy's Z_One Fund has closed more than €35 million at its first close, against a total fundraising target of €60 million, to invest in pre-Seed and Seed startups working on AI applications and UrbanTech.

The fund is managed by Eureka! Venture, an independent Milan-based asset management company founded in 2019 and supervised by the Bank of Italy and Consob. The investor base includes some of Italy's most prominent institutions: CDP Venture Capital SGR committed capital through its newly launched Fondo Acceleratori 2, while Euronext Milan-listed Zest, Fondazione Compagnia di San Paolo, Lazio Innova through a parallel regional fund, and a group of private investors joined the round.

Who runs the fund?

Luigi Capello, described as a pioneer of the Italian innovation ecosystem, leads Z_One Fund. He works alongside partner Giulio Montoli and junior partner Giulia Fazzini. Montoli built his career in acceleration and pre-Seed investing, including leading the management of one of the country's largest startup portfolios. Fazzini ranks among the youngest women to hold a partner-level role at an Italian VC firm.

Together, the trio brings experience across over 340 investments, more than 25 exits, and over €80 million under management. Their notable deals include FitPrime, Robot.com, JetHR, Vikey and 2Hire.

What will the money fund?

The fund writes initial tickets of up to €250k, aiming to be the first institutional cheque into a startup, with selective follow-on investments of up to €1 million.

It targets two sectors. In AI Applications, it backs startups embedding artificial intelligence into corporate and public administration workflows, spanning verticals from financial services and retail to digital security and the development of new AI models. In UrbanTech and Smart Cities, it funds technologies transforming cities: smart buildings, electric mobility, water and waste management, and the regeneration of public spaces.

Why did CDP Venture Capital invest?

Stefano Molino, Head of the Fondo Acceleratori at CDP Venture Capital, explained the strategic logic: "The development of an increasingly mature innovation ecosystem comes from the ability to value specialised operators capable of supporting startups from the earliest stages of growth. It is with this vision that we chose to invest in Z_One Fund, the first investment of the Fondo Acceleratori 2, the cornerstone of our new acceleration strategy, designed to leverage the skills of specialised managers and operators, while maintaining the Rete Nazionale Acceleratori's ability to combine investment with operational and mentorship support to help companies with go-to-market and the validation of their business model."

Membership in CDP Venture Capital's Rete Nazionale Acceleratori means portfolio companies receive more than cash. They gain access to a structured acceleration programme delivered in partnership with Zest.

What does the lead partner say?

Capello framed the fund's mission in supply-chain terms. "Italian venture capital needs a financial supply chain to help high-potential startups grow. This requires institutional capital willing to invest from the very beginning and the ability to support founders in developing their business. With Z_One Fund we put to use the experience gained over years of investing and acceleration," said Capello, Partner at Z_One Fund.

He added: "We want to give more teams the opportunity to test themselves against the market and to progressively concentrate resources on the companies that show the greatest potential, in segments that open up important opportunities for a new generation of tech companies. Our ambition is to help them be born in Italy with a European outlook."

Where does Eureka! Venture stand?

Stefano Peroncini, CEO of Eureka! Venture SGR, positioned the fund within the firm's broader build-out: "With Z_One Fund we take a further step in Eureka!'s growth path as a multi-strategy platform dedicated to alternative investments. We believe venture capital needs increasingly specialised and vertical models, capable of combining entrepreneurial talent, capital, expertise and operational support."

Eureka! Venture focuses exclusively on DeepTech investments and recently launched Eureka! Fund II – Deep Tech Lazio, a €20 million early-stage fund. Across its multi-strategy platform spanning technology transfer, software, DeepTech, AI, UrbanTech, and SME-focused vehicles, the firm has raised over €190 million to date.

What about the Lazio parallel fund?

Alongside the main vehicle sits Z_One Fund Lazio, a parallel fund created through the Lazio Venture 2 initiative under the PR FESR 2021-2027 programme and managed by Lazio Innova.

The parallel fund applies the same investment strategy as Z_One Fund but directs capital specifically toward startups connected to the Lazio region. Its stated aims: strengthen the availability of pre-Seed and Seed financing locally and bridge innovation with regional universities and industry.

With €25 million still to raise toward the €60 million target, Z_One Fund now has the institutional backing, the accelerator network and the ticket structure to become a first-call investor for Italian founders in its two chosen segments.