In recent years, European venture capital has experienced significant growth, and one strategy that has proven effective in fostering a nation’s ecosystem is investing in founders from that country, regardless of their location. This approach helps to repatriate the entrepreneurial mindset back to their home country. In Europe, this concept was partially pioneered by Paris-based Kima Ventures. Now, a new venture firm, Vento, is aiming to replicate this idea in Italy.

Vento, one of Italy’s most active private early-stage VCs, is launching its second fund, which is hard-capped at €75 million. This fund will specifically focus on backing Italian startup founders, both at home and abroad.

The sector-agnostic fund was originated by the organizers of Italian Tech Week, an annual event held in Turin that has hosted notable speakers such as Sam Altman, Reid Hoffman, and Elon Musk.

The event was initially launched by John Elkann, chairman of Vento and a scion of the Fiat family, who also serves as chairman of Stellantis and Exor. Elkann’s extensive network in Europe and Silicon Valley has been instrumental in bringing prominent figures to Italian Tech Week.

Vento’s Investment Committee includes notable tech industry veterans such as Diego Piacentini, Mike Volpi, and Jean de La Rochebrochard. Interestingly, Rochebrochard recently joined Kima Ventures, the firm that Vento hopes to emulate, after being removed from Newwave, a French venture outfit, last year.

To date, Vento has invested in over 100 startups, including Bee, JetHR, and Qomodo. The company plans to make 375 investments over the next five years through its second fund.

Diyala D’Aveni, CEO of Vento, commented that Italy is lagging behind other European countries in terms of its tech ecosystem. However, she believes that the country is on the same trajectory as others and that Vento’s efforts will help to drive growth. Italian Tech Week plays a crucial role in this strategy, allowing Vento to evaluate over 3,500 startups and maintain a selective 2.5% conversion rate.

D’Aveni added that the lack of successful startups in Italy is a significant obstacle to the ecosystem’s growth. She believes that once some success stories emerge, the whole ecosystem will experience a surge in growth, similar to what was seen in France.

John Elkann noted that when Vento’s first fund was launched in 2022, Italy’s technological and entrepreneurial potential was significantly underserved. He created Vento to address this gap by providing capital, venture building, and network development through Italian Tech Week.

Elkann also acknowledged that Italian company law can be less favorable to startup founders compared to other countries. However, he expressed confidence that Italy is becoming increasingly competitive in the international technology landscape and that these regulatory differences will become less relevant over time.

According to Dealroom data, venture capital investment in Italian startups has experienced significant growth, totaling $5.72 billion over the last five years. This represents a more than threefold increase from the previous five years.

D’Aveni mentioned that Vento already has plans to expand its reach internationally, with a network of founders outside of Italy sending them deals and micro-communities of Italians in cities such as New York, London, Berlin, and Paris.