Z_One Fund closes over €35M for Italian AI and UrbanTech Startups

By Daniel Okafor

Z_One Fund, managed by Milan-based Eureka! Venture, has secured more than €35 million toward a €60 million target, according to Dealroom. Dealroom said the fund will back Italian pre-seed and seed startups in AI applications, UrbanTech and smart cities.

The fund aims to be the first institutional cheque for an early-stage startup. Smaller entry commitments will come first, while larger follow-ons depend on milestone delivery.

Who is backing Z_One, and how will it deploy the money?

CDP Venture Capital is the lead investor, committing through its newly launched Fondo Acceleratori 2, Dealroom said. The investor group also includes:

• Euronext Milan-listed Zest.
• Lazio Innova, through a regional parallel fund.
• Fondazione Compagnia di San Paolo.
• Private backers.

This marks the first investment by CDP Venture Capital's Acceleratori 2 fund. Dealroom views the close as a shift toward backing independent managers and accelerator-linked early-stage bets.

Z_One plans initial tickets of up to €250,000 and selective follow-on investments of up to €1 million. It plans up to 100 investments and will concentrate follow-on capital progressively on companies that hit milestones.

What support and experience sit behind the fund?

Portfolio companies will also access a structured acceleration programme, Dealroom said. It runs through CDP Venture Capital's Rete Nazionale Acceleratori in partnership with Zest.

Luigi Capello, a veteran of the Italian venture scene, said: "Italian venture capital needs a financial supply chain to help high-potential startups grow." The arrangement links early-stage funding with structured acceleration support, the financial supply chain Capello described.

Luigi Capello leads Z_One, with Giulio Montoli as partner and Giulia Fazzini as junior partner. According to Dealroom, the team brings experience of over 340 investments, more than 25 exits and over €80 million under management. Their deal history includes FitPrime, JetHR, Vikey, Robot.com and 2Hire.

Why is Z_One targeting pre-seed now?

Z_One targets a persistent gap that Dealroom identified: institutional capital has thinned at the very earliest stages, where startup rounds have become scarcer.

AIFI's Venture Capital Monitor shows a split in the Italian market. Italian startups attracted €679 million in the first half of 2026, up 37% year over year, but initial investments fell to 95 from 110.

More money reached the market while fewer investors made first commitments. Z_One targets that earlier point in a company's development, before larger rounds become available.

What does the close signal for Italian venture capital?

Dealroom placed Z_One alongside Techshop II, which closed at €43 million in September for pre-seed and seed AI startups. Together, the two funds direct fresh Italian capital toward companies at the start of their growth.

Z_One's UrbanTech and smart-cities mandate broadens the new capital pool beyond software, Dealroom said. That gives the new early-stage vehicle a wider remit than the AI-only fund.

The next test is deployment. Z_One aims to reach its €60 million target and make up to 100 investments. Its follow-on cheques of up to €1 million will show whether milestone-based financing can expand institutional support for Italy's earliest startups.