MuleSoft founder’s DIG Ventures closes $120M Fund III to back 30 AI infrastructure startups

DIG Ventures has closed a third fund worth $120 million, and it’s going after a very specific slice of Europe’s startup market: pre-seed and seed companies building AI-native enterprise infrastructure. The firm says it plans to make around 30 investments, putting in between $1 million and $5 million each, and it expects to lead most of those rounds. It has already started writing checks.

The fund closed in just a few months and is 20% larger than Fund II, which finished in April 2025 at $100 million. Backers include Horsley Bridge, Sofina, Granite, and a large endowment from a US university. The list of entrepreneur investors is crowded with familiar names from the software world, including the founders of Slack, Datadog, Nord Security, Cast AI, Supercell, and Dash0.

DIG’s pitch is rooted in operator muscle. Ross Mason founded MuleSoft in 2006, took it public in 2017, and sold it to Salesforce in 2018 before setting up DIG as a family office in the same year. Melissa Klinger, who ran UK sales at MuleSoft, and Rytis Vitkauskas have joined him. Vitkauskas says his own path includes an early investment in Avast at Summit Partners, a co-founding role at YPlan, and time as Lightspeed’s first partner in Europe. DIG says he has backed eight unicorns and one decacorn.

The firm is leaning hard into control points. Its view is that AI may cut software development costs, but it also raises competition, so the durable winners will own data, compliance, and orchestration. That shows up in the portfolio: Tower works on data, Cofide on identity, CUBE on compliance, and Nexos.ai on orchestration. DIG also points to bigger names in the mix, including Dash0, now valued at $1 billion after its $110 million Series B, and Taktile, which raised $110 million in Series C with DIG participating.

The timing is awkward and probably deliberate. PitchBook says European VC funds raised €8.2 billion in the first six months of 2026, up 32.8% year on year, while the median fund size climbed from €50 million to €60 million. At the same time, Vitkauskas says capital is concentrating at the top end, with a huge share of LP money going to a handful of giant multi-stage funds. DIG is betting that smaller, operator-led money can still win by being early, technical, and global. That is a decent wager. Europe has heard enough lectures about sovereignty; it needs infrastructure investors who can spot the pipes before everybody else notices the water.