According to the Ministry of Enterprises and Made in Italy, Unioncamere, and InfoCamere, innovative entrepreneurship has grown in Italy. A study conducted in October 2021 shows that the number of innovative startups has steadily risen, with 14,032 new ones registered in the Business Register marking a 3.3% increase over the previous quarter.

However, one of the primary challenges Italian startups face is the lack of available funding, particularly during the early pre-seed and seed stages. That’s why the Italian Founders Fund, the first Italian venture capital reserve created by entrepreneurs for entrepreneurs, was established to address the shortage of funding dedicated to the early stages of startups.

This article will explain the Italian Founders Fund, who it’s for, and its aims.

What’s in this article?

• What is the Italian Founders Fund?
  
• Who is the Italian Founders Fund aimed at?
  
• What are the aims of the Italian Founders Fund?
  
• What were the first projects funded?
  
• Who runs the Italian Founders Fund?
  

What is the Italian Founders Fund?

In 2023, the Italian Founders Fund (IFF)—the first Italian venture capital fund created by founders for founders—was established. This investment fund is backed by 100 digital entrepreneurs, family offices, and professionals from various fields, bringing together diverse experiences, skills, and generations. The backers are Italian founders with a vision to raise capital to support Italian entrepreneurs in overcoming the typical challenges startups face.

The fund is managed by Koinos Capital, an independent asset management company (SGR) specializing in private equity, that is now expanding its focus to include venture capital. The IFF has already raised over €50 million exclusively from private capital, with the ultimate goal of reaching €60 million.

The concept behind the Italian Founders Fund is to emulate similar successful models found in other European countries. Marco Morgese, CEO of Koinos Capital, said, “This type of founder-managed fund is already established in markets where innovation is a key focus of industrial policy. We see the Founders Fund in the US, which has been around for almost 20 years, as well as 10x Founders in Germany, Galion.exe in France, byFounders in Scandinavia, and the Dutch Founders Fund in the Netherlands.”

Who is the Italian Founders Fund aimed at?

The Italian Founders Fund focuses on startups founded by Italian entrepreneurs based in Italy or abroad and foreign startups looking to expand into the Italian market. The fund aims to support new innovative projects at the pre-seed stage or help grow existing ones that require additional backing to succeed at the seed stage.

What are the aims of the Italian Founders Fund?

The Italian Founders Fund plans to finance 25 deals throughout its duration, with investments per company ranging from €500,000 to €1.5 million, and the potential for an additional €2.5 million in subsequent funding rounds.

The fund’s goal is to act as a lead investor in the pre-seed and seed stages of startup companies. The uniqueness of the IFF lies in its collaborative and participatory approach: it offers expertise, experience, time, and a network of highly qualified investors—and it actively participates in the research and selection of investment opportunities. This involvement allows the Italian Founders Fund team to gain in-depth, firsthand knowledge of the prospects and challenges faced by the companies they target for funding. In addition, the IFF actively works with international funds that are interested in investing in Italy.

What were the first projects funded?

Jet HR

The Italian Founders Fund has already supported two projects. The first project funded by the IFF, in collaboration with Exor Ventures, is Jet HR—a platform designed to optimize human resources management while minimizing bureaucratic complications. Founded in late 2022, the Milan-based startup raised €4.7 million, one of the largest pre-seed rounds in Italy. Just a few months after its launch, the company has already reached €1 million in recurring revenue, placing it in the top 10% of the world’s fastest-growing SaaS startups.

Jet HR aims to manage the entire employee lifecycle, from hiring to payroll, providing a comprehensive solution for all of a company’s administrative needs. Additionally, Jet HR serves both employers and employees through a dedicated app that allows employees to request leave, submit expense reports, and manage various aspects of their work life. According to Francesco Scalambrino, one of the startup’s founders, the goal is to automate tasks that consume excessive resources and valuable time—allowing them to be redirected to more strategic activities.

Glaut

The second project funded by the Italian Founders Fund is Glaut, a company that conducts market research and surveys using artificial intelligence. Founded in late 2023, the young company successfully completed a $1.4 million pre-seed round. Brainstorm Ventures, Alecla7, Ithaca, B Heroes, Club degli Investitori, Eden Ventures, Delirus Capital, and other angel investors participated in this round.

Just a few months after its launch, Glaut has already partnered with research agencies such as Altum Insights, Marketagent, Eumetra and well-known international brands such as AutoScout24 and Mondadori Group. These industry leaders have used Glaut to conduct thousands of interviews for customer research projects focused on branding, ad testing, idea prototyping, and customer experience.

Currently, the Italian Founders Fund is in the process of finalizing three additional new deals.

Who runs the Italian Founders Fund?

Lorenzo Franzi, a former partner at Global Founders Capital (the venture capital fund of Rocket Internet—a leading digital group in Europe) leads the Italian Founders Fund. Lorenzo brings years of professional experience in investment banking and has also founded a digital startup.

According to Lorenzo Franzi, the strength of the Italian Founders Fund lies in its 100 investors—who are founders and key figures in Italian entrepreneurship and innovation, an exceptional aspect in the industry—as well as an investment committee composed of members of the founder community and experienced investors. These factors allow the IFF to promote and support a strategic sector that aims to reshape the future economy.

Among the more than 100 founders involved in the Italian Founders Fund are key figures from Italy’s prominent digital and entrepreneurial landscape, including Daniele Ratti (Fatture in Cloud), Marco Trombetti (Translated), Andrea Giannangelo (iubenda), Simone Mancini (Scalapay), Giuseppe Amitrano (Dils), Gabriele Antonelli (SpazioDati), and Marcello Ascani (Flatmates Agency).