Italian startup accelerator Zest has announced the launch of Z_One, a new venture capital fund created to back promising early-stage startups focused on artificial intelligence and UrbanTech.
The initiative strengthens Zest’s role in Italy’s innovation ecosystem by providing financial support to companies developing technologies aimed at improving cities, infrastructure, and essential services.
Ambitious Fundraising Goal and Investment Strategy
The newly established fund is targeting a total size of €55 million and plans to invest in approximately 100 startups operating at the pre-seed and seed stages.
Z_One will prioritize businesses building AI-driven and UrbanTech solutions, reflecting growing investor interest in technologies that address urban challenges and modernize public and private infrastructure.
The fund expects to make initial investments of up to €200,000 per startup, while reserving follow-on funding of up to €1 million for companies that demonstrate strong growth and performance.
Experienced Leadership to Drive the Fund
Z_One will be led by Luigi Capello, Giulio Montoli, and Giulia Fazzini, who will oversee the fund’s investment strategy, portfolio development, and startup selection process.
Their leadership is expected to guide the fund in identifying high-potential founders and supporting their long-term growth.
Zest Commits Capital and Strategic Support
As part of the launch, Zest has become the fund’s first limited partner (LP), committing €5 million to the investment vehicle.
Beyond its financial contribution, the accelerator will serve as both sponsor and advisor, leveraging its experience in startup acceleration to provide deal sourcing, market scouting, industry expertise, and access to its extensive business network.
Fund Management Entrusted to Eureka! Venture SGR
The operational management of Z_One will be handled by Eureka! Venture SGR, which will oversee the fund’s administration and investment execution.
This partnership combines Zest’s startup ecosystem expertise with professional venture capital management to support the fund’s long-term objectives.
Strengthening Italy’s Startup Ecosystem
The launch of Z_One represents another step in Zest’s strategy to accelerate innovation following its creation in 2024 through the merger of Digital Magics and LVentures.
By increasing the availability of early-stage capital for AI and UrbanTech startups, the new fund aims to help entrepreneurs transform innovative ideas into scalable businesses while contributing to the continued growth of Italy’s technology sector.
Summary
Zest has launched Z_One, a new venture capital fund targeting €55 million to invest in around 100 pre-seed and seed-stage AI and UrbanTech startups.
Backed by an initial €5 million commitment from Zest, the fund will offer investments of up to €200,000 with follow-on financing of up to €1 million for top-performing portfolio companies.
Zest will provide strategic support and deal sourcing, while Eureka! Venture SGR will manage the fund.
