Italy's Z_One Fund hits €35M first close to back pre-seed AI and UrbanTech startups
What's the deal? Z_One Fund, a venture capital fund managed by Milan-based Eureka! VentureDealroom has a profile for this one. Try Dealroom →, has announced a first close of more than €35 million toward a €60 million target. It will back Italian pre-seed and seed startups in two areas: AI applications and UrbanTech and smart cities.
Who's backing it? CDP Venture CapitalDealroom has a profile for this one. Try Dealroom → is the lead investor, committing through its newly launched Fondo Acceleratori 2. Other investors include Euronext Milan-listed Zest, Lazio Innova via a regional parallel fund, Fondazione Compagnia di San Paolo, and private backers.
What's the endgame? The fund aims to be the first institutional cheque for early startups, writing initial tickets of up to €250,000 and selective follow-ons of up to €1 million. It plans up to 100 investments, progressively concentrating capital on the companies hitting milestones.
Z_One is led by Luigi Capello, a veteran of the Italian venture scene, alongside partner Giulio Montoli and junior partner Giulia Fazzini. Collectively, the team brings experience of over 340 investments, more than 25 exits, and over €80 million under management, with deals including FitPrimeDealroom has a profile for this one. Try Dealroom →, JetHRDealroom has a profile for this one. Try Dealroom →, VikeyDealroom has a profile for this one. Try Dealroom →, Robot.comDealroom has a profile for this one. Try Dealroom →, and 2HireDealroom has a profile for this one. Try Dealroom →.
Why now? The fund targets a persistent gap — institutional capital at the very earliest stages, where rounds have thinned. Italian startups attracted €679 million in the first half of 2026, up 37% year over year, but initial investments fell to 95 from 110, according to AIFI's Venture Capital Monitor.
Portfolio companies will also access a structured acceleration programme, delivered through CDP Venture Capital's Rete Nazionale Acceleratori in partnership with Zest. "Italian venture capital needs a financial supply chain to help high-potential startups grow," said Capello.
The signal: Z_One marks the first investment by CDP Venture Capital's Acceleratori 2 fund, signalling a shift toward backing independent managers and accelerator-linked early-stage bets. Alongside Techshop II, which closed at €43 million in September for pre-seed and seed AI startups, it points to fresh Italian capital concentrating on very early companies — though Z_One's urban-tech mandate broadens its focus beyond software.
Read more: EU-Startups
Image credit: Generated with Gemini
