DIG Ventures Closes $120M Fund III for AI Infrastructure

TL;DR

DIG Ventures, the London-based firm founded by MuleSoft creator Ross Mason, has closed its third fund at EUR106 million ($120 million) to back pre-seed and seed enterprise infrastructure and AI founders across Europe and Israel. The fund is backed by institutional LPs Horsley Bridge, Sofina, Granite, and a US university endowment, alongside an unusually dense bench of founder-LPs including Slack's Cal Henderson, Datadog's Olivier Pomel, GitHub's Thomas Dohmke, and Nord Security's Tomas Okmanas and Eimantas Sabaliauskas. Fund III follows a EUR90 million Fund II that Carta benchmarking data ranks in the top decile globally for its vintage and size, a portfolio that includes observability unicorn Dash0 and Goldman Sachs-backed Taktile. DIG plans to back roughly 30 companies from Fund III, concentrating on what it calls the critical control points of enterprise AI: data, identity, compliance, and orchestration.

Key Takeaways

The founder-LP bench is doing real diligence and distribution work, not just signaling. Having the CEOs of Slack, Datadog, and GitHub, plus the founders of Nord Security, as personal LPs gives DIG's portfolio companies direct access to operators who have scaled enterprise software to the exact outcomes DIG's founders are chasing. That is a different kind of value-add than a typical angel-heavy cap table.

Fund II's track record is unusually well-documented for a fund this size. Top-decile Carta benchmarking, 80% of portfolio companies raising follow-on capital within two years, and more than 90% landing US commercial traction within a year are specific, falsifiable claims rather than vague track-record language, and they are backed by concrete outcomes: Dash0's unicorn-making Series B and Taktile's Goldman Sachs-led Series C.

DIG is explicitly a second-timer with a repeatable playbook, not a debut manager finding its footing. Fund III is roughly 18% larger than Fund II's EUR90 million close in April 2025, a measured step-up rather than a dramatic jump, consistent with a firm that has already found product-market fit with its operator-led model and is scaling it carefully rather than chasing a much bigger number.

Three exits in a relatively young portfolio is a meaningful early signal. Flock (acquired by Admiral), Tower (acquired by MotherDuck), and Cofide (acquired by Keyfactor) are all strategic acquisitions rather than fire sales, suggesting DIG's infrastructure and identity-layer thesis is producing companies that incumbents want to buy, not just companies that raise well.

Fund Overview

Fund Name: DIG Ventures Fund III
Fund Size: EUR106 million ($120 million)
Stage: Pre-seed and seed
Check Size: Not disclosed; the firm says it intends to lead most of the rounds it enters
Geography: Europe and Israel
Focus: Enterprise and cloud infrastructure underpinning AI, specifically the data, identity, compliance, and orchestration layers that sit beneath AI applications
Key LPs: Horsley Bridge, Sofina, Granite, and a US university endowment (institutional); founder-LPs including Olivier Pomel (Datadog), Cal Henderson (Slack), Thomas Dohmke (GitHub, Entire), Tomas Okmanas and Eimantas Sabaliauskas (Nord Security), and Mirko Novakovic (Dash0)

Why This Fund Matters

DIG's origin story is unusual among European seed funds: it began as Ross Mason's family office after Salesforce's $6.5 billion acquisition of MuleSoft, and only became an institutional fund manager with Fund II in 2025. That trajectory, operator capital first, institutional LPs second, is the inverse of how most funds are built, and it shows up in the firm's positioning. DIG describes itself as the only operator-led early enterprise VC fund in Europe, and its partner team, Mason, Melissa Klinger (an early MuleSoft commercial hire who scaled the company's European go-to-market through IPO), and Rytis Vitkauskas (a former Lightspeed, Target Global, and Summit Partners investor who has personally backed eight unicorns and one decacorn), is built entirely around people who have either built or professionally backed enterprise infrastructure companies at scale.

The thesis itself, betting on the infrastructure layers beneath AI rather than AI applications directly, is a reasoned response to a real problem in venture right now: application-layer AI companies face compressing differentiation as model capability commoditizes, while the data, identity, compliance, and orchestration infrastructure those applications depend on tends to accrue durable, defensible value as adoption scales. Mason's own framing, that "the truly scalable, defensible companies will be the ones building the foundations on which wider enterprise software depends," is a direct bet that infrastructure outlasts application-layer hype cycles.

The Europe-to-US distribution problem is the second structural thesis DIG is underwriting. Mason has been explicit that Europe is not short on technical talent, but has historically struggled to convert technical advantage into global commercial distribution, and DIG's own data point, more than 90% of Fund II portfolio companies landing US commercial traction within a year, is a specific claim that the firm's operator network materially shortens that path. For a European founder, that claim is only as good as the actual introductions behind it, but having Slack's and Datadog's own founders as LPs gives it more weight than most funds' version of the same promise.

The institutional LP base, Horsley Bridge, Sofina, and a US university endowment, also signals that DIG has crossed a credibility threshold that many graduating operator-led funds never reach. Sofina in particular is a large, patient European holding company known for backing category leaders over long hold periods, and its participation suggests DIG's Fund II results were strong enough to convert sophisticated European capital that could have gone to any number of larger, more established funds.

The Team

Ross Mason is Founding Partner. He founded MuleSoft as an open-source project and built it through IPO to a $6.5 billion acquisition by Salesforce, then spent a decade in Silicon Valley before founding DIG Ventures in Europe. Melissa Klinger is General Partner; she was one of MuleSoft's earliest commercial hires in Europe, led its sales team through the company's growth to IPO and exit, and now focuses on helping DIG's technical founders build out go-to-market functions. Rytis Vitkauskas is General Partner; before DIG, he invested at Lightspeed Venture Partners, Target Global, and Summit Partners, personally backing eight unicorns and one decacorn including Personio and Matillion, and earlier co-founded YPlan, which Time Out Group acquired in 2016. Andrew Baldwin, with prior venture experience at Connect Ventures and Kindred Capital, leads finance and fund operations as Head of Finance.

Early Portfolio

DIG's Fund II portfolio includes Dash0, an AI-native observability platform that became a unicorn following a EUR94 million ($110 million) Series B in March 2026; Taktile, an AI decisioning platform that raised a $110 million Series C led by Goldman Sachs; CUBE, a regulatory technology company used by more than 30 global financial institutions; Jack & Jill, an AI HR platform that raised a EUR34.68 million Series A; and Nexos.ai, an AI orchestration platform founded by the team behind Nord Security. The firm has also recorded three exits: Flock (insurance infrastructure, acquired by Admiral), Tower (data infrastructure, acquired by MotherDuck), and Cofide (workload identity, acquired by Keyfactor). Fund III has already begun deploying capital, though specific new investments have not yet been disclosed separately from the firm's broader portfolio, which also includes PolyAPI, nexos.ai, dltHub, OllyGarden, Ace Waves, Keewano, Jack & Jill, Userled, Swarmia, Balsio, Auctor, Dreamhub, Arke, and Talsec.

What This Means for Founders

Pre-seed and seed founders building in enterprise infrastructure, particularly around AI data layers, identity, compliance, and orchestration, across Europe and Israel now have a capitalized, operator-led fund with a demonstrated ability to lead rounds and a specific, well-resourced plan to help them land US commercial traction. DIG's own stated benchmark, 90% of Fund II portfolio companies entering the US market commercially within a year, is a concrete standard founders can ask the firm to be held to in diligence conversations.

Founders should also weigh DIG's concentrated thesis: this is not a generalist seed fund, and a company outside the data, identity, compliance, and orchestration layers of enterprise AI infrastructure is less likely to fit the mandate regardless of overall quality. The firm has said it intends to lead most rounds it enters, which founders evaluating term sheets should factor into how they think about board composition and ownership.

Fund Momentum Take

We find the operator-led thesis here more credible than most funds that use that language. DIG's partner team did not just advise enterprise software companies; Mason built and sold one of Europe's most significant enterprise infrastructure exits, and Klinger scaled its go-to-market from the inside. Combined with a founder-LP bench that includes the people who actually run Slack, Datadog, and GitHub, this is about as close as venture gets to a fund whose network claims are backed by people with something to lose if they do not deliver on introductions.

The track record numbers, top-decile Carta benchmarking, 80% follow-on rate, three strategic exits, are genuinely strong for a fund that only became institutional with Fund II in 2025. Our one note of caution is standard for any fund still early in its institutional life: a single vintage's top-decile ranking is a real achievement, but it is one data point, and the step-up to a EUR106 million Fund III, while measured rather than dramatic, will test whether the same hands-on, lead-most-rounds model holds up with meaningfully more capital to deploy across 30 companies.

The infrastructure-over-applications thesis is well-timed and, in our view, correctly contrarian relative to where most seed capital is still chasing applications. Founders and co-investors should watch whether DIG's claimed US-distribution edge continues to hold at Fund III's larger scale, since that specific claim, more than the fund size or the LP names, is the actual product DIG is selling to founders.

Frequently Asked Questions

How large is DIG Ventures' new fund?
Fund III closed at EUR106 million ($120 million), up from Fund II's EUR90 million close in April 2025.

Who founded DIG Ventures?
Ross Mason, founder of MuleSoft (acquired by Salesforce for $6.5 billion), founded DIG Ventures as his family office before it became an institutional fund manager with Fund II.

What stage and geography does DIG Ventures invest in?
The firm invests at pre-seed and seed stages across Europe and Israel, focused on enterprise infrastructure underlying AI: data, identity, compliance, and orchestration layers.

Who are DIG Ventures' key LPs?
Institutional LPs include Horsley Bridge, Sofina, Granite, and a US university endowment. Founder-LPs include Datadog's Olivier Pomel, Slack's Cal Henderson, GitHub's Thomas Dohmke, Nord Security's Tomas Okmanas and Eimantas Sabaliauskas, and Dash0's Mirko Novakovic.

What is DIG Ventures' track record?
Fund II ranks in the top decile globally for its vintage and size per Carta benchmarking data, with 80% of portfolio companies raising follow-on capital within two years and three strategic exits: Flock (to Admiral), Tower (to MotherDuck), and Cofide (to Keyfactor).

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