The Digital Transition Fund - PNRR is an instrument to stimulate the growth of an innovation ecosystem in digital transition sectors through venture capital investments.

For the purposes of the Invitation to submit proposals for this Fund, “target enterprises” are defined as:

1. Start-ups with high development potential, with particular attention to SMEs (as per Recommendation 361 of May 8, 2003) in the supply chains of the digital transition, that are carrying out innovative projects;
2. Start-ups and small and medium-sized enterprises that were established through a corporate spin-off or as a result of the sale of a company or a business unit by a large enterprise or a mid-cap company, or that were established with the investment of a large enterprise or a mid-cap company in a venture-building perspective;
3. Holding companies that cumulatively (i) have their legal headquarters in a country other than Italy and control (pursuant to Art. 2359, co. 1, n. 1, of the Civil Code) one of the companies mentioned above, and (ii) effectively conduct their business or have development plans in Italy. In this case, it is specified that the resources invested by the Fund must be employed by the eligible companies in Italy, and the intellectual property developed in Italy must remain in Italy.

It should be noted that the fact that a target company does not qualify as an "innovative start-up" or "innovative SME" is not an obstacle to investment by the Fund, subject to the competent governance bodies of the SGR (Asset Management Company) checking that the company's business/development projects matches the Fund's areas of interest.

Without prejudice to the autonomy of the SGR in the selection process, investment opportunities must have the following characteristics:

• They must involve target companies, with particular attention to start-ups and SMEs in the digital transition supply chains, as well as start-ups and SMEs that carry out innovative projects, including small and medium-sized enterprises resulting from the spin-offs of large enterprises, the latter only if characterized by a significant degree of scalability;
• They must concern investment in target companies to promote the digital transition of supply chains, particularly in the areas of Artificial Intelligence, cloud, healthcare, Industry 4.0, cybersecurity, fintech, blockchain, and microelectronics, as well as other areas of the digital transition;
• They must comply with the technical guidelines on the application of the DNSH principle. For more details regarding excluded activities and NACE/ATECO codes, please refer to section 2 'Characteristics of Target Companies' of the Call for Proposals published below.

Regarding the Digital Transition Fund - PNRR, the Call for Proposals has been published on the website of the Ministry of Enterprises and Made in Italy and on the website of CDP Venture Capital SGR (see the 'Download the Calls and Guidance' section below, updated version as of January 2025).

Interested parties can submit projects for potential investment in the target companies by the Fund in question by sending the project presentation and supporting documentation to the email address digitaltransitionfund@cdpventurecapital.it.

For more details on the required documentation, please refer to 'Annex 1 - Due Diligence Checklist, target company,' published on the website of the Ministry of Enterprises and Made in Italy and on the website of CDP Venture Capital SGR (see the 'Download the Calls and Guidance' section below, updated version as of January 2025).

The Digital Transition Fund – PNRR is a closed-end reserved mutual fund established on September 20, 2022, based on the agreement signed by the Ministry of Enterprises and Made in Italy (formerly the Ministry of Economic Development) and CDP Venture Capital SGR S.p.A., through the use of resources allocated by the European Union under the NextGeneration EU initiative and included in NRRP Mission 4, Component 2, Investment 3.2, 'Financing of start-ups,' with a total amount of EUR 400 million.

The Fund aims to promote the digital transition of supply chains and small and medium-sized enterprises that carry out innovative projects in the fields of Artificial Intelligence, cloud, healthcare, Industry 4.0, cybersecurity, fintech, blockchain, and microelectronics, as well as other areas of the digital transition.

The Fund’s goal is to incentivize private investment, improve access to financing in the Italian digital start-up ecosystem, and develop the venture capital market in the sector, by signing financing agreements with start-ups, newcos, or venture capital funds by June 30, 2026, for an amount necessary to fully utilize the resources reserved for the Fund (EUR 400 million).

Direct investments will be made through equity and quasi-equity instruments, with the specific terms for each investment (such as the amount invested and the specific type of instrument) being evaluated and defined on a case-by-case basis by the investment team. In accordance with market practice, CDP Venture Capital reserves the right to condition the investment on the recognition of certain specific rights, such as informational or governance rights.

Indirect investments (fund of funds model) will be made through the subscription of instruments of 'third-party target funds' managed by 'authorized managers'.

For further details regarding direct and indirect investments, please refer to the definitions outlined in the Financial Agreement (updated as of June 10, 2024), signed between the Ministry of Enterprises and Made in Italy (formerly the Ministry of Economic Development) and CDP Venture Capital SGR S.p.A.

No, the investment methods of the Digital Transition Fund are as described in the FAQ section.