Italian Founders Fund: 10 Key Things You Must Know

Overview

Italian Founders Fund (IFF) is a groundbreaking venture capital initiative dedicated to supporting early-stage startups founded by entrepreneurs with Italian roots. Established in 2023 and managed by Koinos Capital SGR, IFF is unique in being Italy’s first founder-backed VC fund—created by entrepreneurs for entrepreneurs. It addresses the critical funding gap in Italy’s startup ecosystem, especially at the pre-seed and seed stages, by combining financial support with the invaluable experience and network of over 100 seasoned Italian founders. Beyond simply providing capital, IFF fosters a collaborative community aimed at accelerating innovation both within Italy and on a global scale.

1. Founding and Purpose

Launched in 2023, the Italian Founders Fund was created to overcome one of Italy’s biggest hurdles in its innovation landscape: a scarcity of early-stage funding for startups. The fund pools together resources and expertise from more than 100 experienced Italian entrepreneurs and investors, aiming to empower visionary founders with the capital and strategic advice necessary to succeed globally. By leveraging this founder-driven approach, IFF brings a deep understanding of startup challenges paired with a commitment to nurturing next-generation Italian companies.

2. Founder-Backed Model and Community

Unlike traditional venture capital funds, IFF operates as a founder-backed community, which means it is led and supported by entrepreneurs who have lived the startup journey themselves. This network of founders offers startups access not only to funding—from €250k up to €2 million in initial investments—but also hands-on mentorship, operational support, and connections that accelerate growth. This community aspect distinguishes IFF by emphasizing collaboration, transparency, and founder-friendly investment terms.

3. Geographic and Sector Focus

IFF primarily targets startups founded by individuals with Italian roots, whether operating in Italy or internationally. It also supports foreign startups planning to enter the Italian market. The fund is sector-agnostic but has a notable focus on digital innovation, including software, AI, HR technologies, healthcare, and sustainability tech. This broad approach allows it to nurture diverse disruptive ideas across various fields, reflecting the multifaceted nature of Italy’s burgeoning startup ecosystem.

4. Investment Strategy and Scale

The fund intends to make approximately 25 investments over its life cycle, typically ranging from half a million to €1.5 million initially, with the possibility of follow-on investments reaching up to €2.5 million. IFF leads or co-leads pre-seed and seed rounds, positioning itself as a strategic partner during startups’ critical early phases. This strategy is designed to unlock access to subsequent global funding rounds while increasing the maturity and readiness of Italian startups for greater international success.

5. Key Portfolio Companies

Among its portfolio, Italian Founders Fund has backed several promising startups. Notable examples include Jet HR, a digital payroll and HR management platform that helps SMBs reduce bureaucracy; and Glaut, an AI-powered market research platform facilitating scalable customer insights. These companies embody IFF’s commitment to supporting ventures with both technological innovation and strong growth potential.

6. Recent Capital Expansion and Strategic Growth

By August 2025, IFF secured a major capital boost, raising its assets under management from €55 million to approximately €90 million. This injection came largely through a €35 million contribution from CDP Venture Capital’s Digital Transition Fund, linked to Italy’s National Recovery and Resilience Plan (PNRR). This capital infusion enables IFF to expand its investment scope to cover follow-on and later-stage rounds, thereby enhancing support for startups as they scale further.

7. Role in Strengthening Italy’s Startup Ecosystem

IFF plays a pivotal role in reinforcing Italy’s innovation environment by providing early capital combined with seasoned entrepreneurial guidance. By bridging the gap between Italian startups and international investors, including co-investments with global funds such as Base10 Partners, Balderton Capital, and Y Combinator, the fund is helping to internationalize Italian technology ventures. This integrative approach is critical to transforming Italy from a traditionally industrial economy to a digital and innovation hub.

8. Leadership and Team

The fund is spearheaded by Lorenzo Franzi, a former partner at Global Founders Capital with extensive experience in investment banking and entrepreneurship. He is supported by a team that includes Irene Mingozzi, promoted to partner for her role in shaping IFF’s strategy. The governance model also features an investment committee composed of founder community members and seasoned investors, ensuring decisions blend market expertise with entrepreneurial insight.

9. Collaboration with International Investors

IFF actively collaborates with prominent international venture capital funds to create funding bridges between Italy and global innovation hubs in the US, UK, and beyond. This cooperation opens additional financing channels for portfolio companies while encouraging cross-border expansion. Partnerships with organizations like the Dutch Founders Fund, Picus Capital, and Dutch and Scandinavian founder funds highlight IFF’s commitment to positioning Italy within the broader European and global startup landscape.

10. Support Beyond Capital: Mentorship and Networks

Beyond financial investment, IFF provides its portfolio founders with ongoing operational support, mentorship from experienced entrepreneurs, and access to a broad network of industry experts. This hands-on approach helps startups navigate common pitfalls, accelerate product development, and scale efficiently. The fund’s founder-driven ethos emphasizes speed, transparency, and founder-friendly terms, creating a fertile environment for innovation and growth.

Conclusion

Italian Founders Fund stands out as a transformative force in Italy’s venture capital scene. By combining founder insight, strategic capital, and a vibrant community network, it directly addresses the challenges faced by early-stage Italian startups. Its growing capital base, strong leadership, and collaborative approach position it as a critical enabler of Italy’s ambitions to become a leading technology innovation hub. As Italy’s digital ecosystem matures, IFF’s model of founder-backed investment offers both a blueprint and a beacon for nurturing the country’s next generation of global entrepreneurial successes. How the fund evolves in the coming years could well determine the trajectory of Italian innovation on the world stage.