Italy’s venture capital ecosystem has historically lagged behind other European nations, with a poor record of encouraging startups and attracting investment. However, a new wave of optimism is sweeping through the country as Italian Founders Fund (IFF) announces that it has raised over €50 million from more than 100 investors who are keen to support the next generation of entrepreneurs. Lorenzo Franzi, founding partner of IFF, believes that this marks the beginning of a new chapter for the Italian venture capital landscape.
Despite a 53% drop in funding for Italian start-ups last year, there are signs of progress. Fintech companies Scalapay and Satispay became the first Italian unicorns, each reaching a $1 billion valuation. Their success has attracted interest from global investors, including Tencent and Tiger Global. Additionally, there has been increased interest from the business angel community and private wealth is also starting to mobilize. The launch of Exor Ventures’ seed investment vehicle in 2022 further demonstrates the growing support for Italian entrepreneurship.
IFF aims to provide a more structured and mechanized approach to investing in Italian start-ups. By bringing together a diverse group of investors, the fund offers financial backing as well as support in the form of advice, mentoring, and access to networks. This collaborative approach allows promising projects to emerge and grow, with the goal of transforming untapped potential into successful companies that can generate value, change, and jobs. IFF is also actively seeking international investors to co-invest in Italian start-ups alongside local partners.
With the completion of its capital raise, IFF plans to invest in around 25 companies over the next four years. The fund’s first two investments were in Jet HR, a technology business targeting the human resources sector, and Glaut, a technology company utilizing artificial intelligence in market research. Marco Ogliengo, founder of Jet HR, believes that IFF’s approach, backed by successful Italian founders, can provide entrepreneurs with the support they need to succeed. Marco Morgese, CEO of KOINOS Capital, sees IFF as a way to replicate successful founder-led funds seen in other countries, such as Founders Fund in the US and 10x founders in Germany.
The success of IFF and the growing interest in Italian start-ups indicate a shift in the country’s approach to entrepreneurship. As more funding and support become available, there is optimism that Italy can start to compete on a global scale in the venture capital space. With a focus on nurturing talent, providing resources, and fostering innovation, Italy may finally be on the verge of embracing its entrepreneurs and unlocking the potential for growth and success in the start-up ecosystem.
