DIG Ventures closes $120M Fund III to back Europe’s AI infrastructure startups

DIG Ventures has closed its third fund at $120 million, and the target is clear: early-stage European companies building the plumbing for AI-native enterprise software and cloud infrastructure. The firm says it plans to back about 30 companies at pre-seed and seed, and it has already started investing from the new vehicle.

This is not a broad software fund dressed up in AI clothing. DIG wants to lead most of its rounds, and its focus sits on the layers that become more valuable when software is faster and cheaper to build: data, identity, compliance and orchestration. Ross Mason, the firm’s founding partner, argues that as differentiation gets thinner, the durable companies will be the ones that supply the foundations everyone else depends on.

The capital behind Fund III includes Horsley Bridge, Sofina, Granite and a US university endowment fund. The entrepreneur LP list is unusually stacked too, with founders tied to Slack, Datadog, Nord Security, Cast AI, Supercell and Dash0.

DIG was founded in 2018 and is led by Mason, who founded MuleSoft before Salesforce bought it for $6.5 billion, alongside Melissa Klinger, formerly MuleSoft’s UK sales lead, and Rytis Vitkauskas, who founded YPlan and later became a partner at Lightspeed Venture Partners. The team says its own operating experience helps when portfolio companies need to sharpen go-to-market plans and expand internationally.

That pitch is backed by some hard numbers from DIG’s own portfolio. The firm says 80% of Fund II companies raised more institutional capital within two years of its investment, and more than 90% of commercially launched Fund II companies entered the US market within 12 months. Fund II included Dash0, Taktile, CUBE, Jack & Jill and Nexos.ai, while exits have included Flock, Tower and Cofide.