Italian Founders Fund, Italy’s New Startup Venture

The Italian startup scene is getting a big push from the new Founders Fund (IFF). The IFF plans to back early stage startups and make Italy a global startup hub.

Funding Strategy and Objectives

With €50 million secured, the IFF plans to invest in 25 companies that are at their initial stages. It is willing to fund businesses regardless of their sectors, making it an important part of Italy’s startup circuit. Lorenzo Franzi, one of the founders of the fund, stresses how vital it is for startups in their early stages to have steadfast investors.

Lorenzo Franzi informed TechCrunch that “IFF aims to help early stage Italian startups that struggle with accessing strong investors.”

Current Venture Capital State

Even though Italy has quite a few venture capital firms already like CDP Venture Capital, Exor Ventures, and LVenture Group, there’s still a lack of funding during early stages. This gap is what IFF hopes to close with targeted investments and active support for its chosen companies.

  • The first round of investments range from €500K to €1.5 million.
  • Future rounds could yield up to €2.5 million.
  • The focus extends to homegrown and international startups alike.

Portfolio Progress

Jet HR and Glaut are two companies already benefiting from IFF investment. Jet HR is an innovative tech company minimising HR administration pressure while Glaut hopes to change market research by using artificial intelligence. Aside from providing monetary assistance, the IFF guides these companies in securing key positions in commercial expansion and strategic partnerships, which helps these startups tackle the obstructions of growth and spanning out into the international market.

Global Goals

The IFF also funds Italian founders who operate internationally as well as foreign startups with an interest in the Italian market. The fund has plans to entice foreign VC funds to invest in its portfolio, capitalising on the wide ranging knowledge of their investor base.

“IFF’s unique selling point is that all successful Italian founders back it,” said Marco Ogliengo, Jet HR’s CEO.

Market Capability and Future Intentions

Italy secures eighth place for VC investments across Europe according to Dealroom. However, there is a lot of potential for growth. IFF hopes to usher this growth by giving startups a strong foundation for support.

  • Highlight on digital innovation and talent exploration.
  • Plans for international funding partnership setup.
  • Aid towards globally ambitious Italian founders .

Bending Spoons, creator of famous apps such as Evernote and Meetup, are examples of the potential embedded in Italian entrepreneurs. With a valuation of $2.55 billion, Bending Spoons proves that Italian startups have what it takes to compete globally.

Oversight and Aim

Koinos Capital manages the IFF, which is a private equity fund which is straying into venture capital territory. The CEO Marco Morgese noted how commonplace founderled funds are in other markets like Founders Fund in the U.S., Galion.exe in France. This model has been incorporated by IFF as Italy’s startup scene matures up .

“In Italy,” Franzi added, “challenging usual procedures, speed and startup focused mindset is necessary.”

Final Thoughts

The Italian Founders Fund kickstarts a fresh era for venture capital in Italy. With the plan to plug the gaps that early stage funding has and giving wholehearted support to startups, the IFF’s goal is to equip Italian entrepreneurs of the future. This globally focused and founder friendly fund is shaping up to reimagine Europe’s venture capital scene.

With determined goals and key investments, IFF is on course to revolutionise Italy’s startup ecosystem and help the country close the gap with fellow European countries in venture capital investment.

 

Annelise Sylta
Anne Lise is a MBA graduate with a passion for doing research and reviews. She has been with Gizmolead for over 4 years now, and is the lead editor for the magazine.