The Italian Founders Fund (IFF) has made a remarkable entry into the venture capital scene with a €50 million debut fund. The fund is established in response to the burgeoning demand from Italy’s entrepreneurial community seeking to position the country as a prime location for startups in Europe.
Investment Strategy
The Italian Venture Capital firm has crafted an investment strategy that primarily focuses on leading pre-seed and seed funding rounds for promising startups with Italian founders. Operating both domestically and internationally, the fund supports foreign startups eyeing entry into the Italian market. This strategy not only targets emerging innovations but also aims to attract global funds for co-investments. Over its investment period, the fund intends to complete 25 transactions, with initial investments ranging from €500K to €1.5M, and potential access to an additional €2.5M in subsequent rounds.
Vision and Leadership
The Italian Founders Fund (IFF) is spearheaded by Lorenzo Franzi, a former partner at Global Founders Capital. With a rich international background in investment banking and digital startups, Lorenzo has returned to Italy to realise the fund alongside leading Italian entrepreneurs. The fund is driven by a collective goal to boost Italy’s digital innovation through financial backing and strategic insight. Alongside funding, IFF provides its portfolio startups with access to its expansive investor network, strategic advice, and sector-specific expertise. The collaboration of founder investors in the investment process allows for a deeper understanding of the market and the obstacles faced by target startups.
Notable Investments
IFF quickly announced its first investments—Jet HR and Glaut. Jet HR, a tech company dedicated to simplifying HR management processes, secured what stands as Italy’s largest pre-seed round to date. IFF co-invested alongside Exor Ventures in this endeavour. Glaut, focusing on enhancing market research with AI, caught the attention of international funds and angel investors. Moreover, three additional transactions are nearing completion, reflecting IFF’s aggressive approach to expanding its investment portfolio. Lorenzo Franzi stated, “A new chapter has begun for the Italian Venture Capital ecosystem.” He emphasised on bringing over 100 founders into the fold, promoting an integrated investment environment supporting Italy’s burgeoning entrepreneurial ecosystem.
Unique Approach of IFF
The Italian Founders Fund distinguishes itself by promoting a founder-led fund model, more common in markets like the USA and Germany. In these regions, entities such as the Founders Fund and 10x Founders have long practiced this model. Such an approach allows founder partners to align investments with industrial development policies and innovative ideas. Within IFF, the involvement of successful Italian founders extends beyond financial support, enriching startups with invaluable expertise and networking opportunities. This involvement bridges gaps between emerging startups and established business circles, creating a nurturing environment for startup growth and innovation.
Impacts and Expectations
The establishment of IFF is perceived as a significant milestone in empowering Italy’s startup ecosystem. By offering funding and mentorship, it seeks to cultivate a new wave of entrepreneurs capable of advancing Italy’s global standing in innovation. The fund’s unique ecosystem enables a reservoir of resources for early-stage startups, setting a standard for comprehensive support in the VC landscape. Such foundations are expected to fuel economic growth, launch new industries, and consolidate Italy’s status within the European and global startup scenes.
Through strategic investments and robust support mechanisms, the Italian Founders Fund is set to transform Italy’s place in the global startup ecosystem. By empowering talent and nurturing innovation, IFF is poised to leave a lasting impact on both local and international stages.
