European venture capital firm DIG Ventures has closed its third fund at $120 mn to invest in early-stage companies building AI-native enterprise software and cloud infrastructure. Fund III is backed by limited partners including Horsley Bridge, Sofina, Granite and a major U.S. university endowment, alongside entrepreneur LPs behind Slack, Datadog, Nord Security, Cast AI, Supercell and Dash0.
DIG plans to invest in around 30 European companies at the pre-seed and seed stages, concentrating on infrastructure used to build and operate AI-native enterprise software. The firm expects to lead most rounds and has already started deploying capital from the new fund.
Founded in 2018, DIG Ventures is led by Mason, founder of enterprise integration company MuleSoft, which Salesforce acquired for $6.5 bn, Melissa Klinger, former UK sales lead at MuleSoft, and Rytis Vitkauskas, founder of YPlan and a former partner at Lightspeed Venture Partners. The team uses its operating experience to work with portfolio companies on go-to-market execution and international expansion.
Its investment thesis is based on a shift in software economics as AI reduces the time and cost required to develop applications. DIG expects infrastructure around data, identity, compliance and orchestration to attract more investment as enterprise software becomes easier to build and competition increases.
Our conviction as a fund is clear: as development accelerates and differentiation erodes, the truly scalable, defensible companies will be the ones building the foundations on which wider enterprise software depends. These are the companies whose advantages compound as the cost of building software falls.
Ross Mason, founding partner at DIG Ventures
According to DIG’s internal portfolio data, 80% of Fund II companies raised additional institutional capital within two years of its investment. More than 90% of Fund II companies that had commercially launched entered the U.S. market within 12 months.
Fund II, DIG’s first institutional vehicle, includes AI-native observability company Dash0, decision platform Taktile, regulatory technology company CUBE, AI HR platform Jack & Jill and AI orchestration company Nexos.ai. The portfolio gives DIG exposure across enterprise infrastructure, compliance, workforce software and AI operations.
The firm has also recorded several exits. Insurance infrastructure company Flock was acquired by Admiral for $109 mn, data infrastructure platform Tower was acquired by MotherDuck, and workload identity company Cofide was acquired by Keyfactor.
With Fund III, DIG plans to continue investing in European founders developing AI infrastructure while helping portfolio companies expand internationally. The firm is targeting businesses whose products sit beneath broader enterprise software stacks, where demand could increase as AI lowers software development costs and puts more pressure on differentiation.
