DIG Ventures has closed its third fund at €106 million, targeting European pre-seed and seed startups building AI-native enterprise software and cloud infrastructure. The London-based venture firm plans to invest across data, identity, compliance and orchestration technologies.
DIG Ventures raises €106 million for Fund III
DIG Ventures, the London-based venture capital firm founded by MuleSoft creator Ross Mason, has closed its third fund at €106 million, or about $120 million. The new fund will focus on European startups developing enterprise and cloud infrastructure that supports the growing adoption of artificial intelligence.
The fundraise comes as venture investors increasingly look beyond consumer-facing AI applications toward the infrastructure required to build, deploy and manage AI systems at scale.
DIG Ventures said Fund III will target approximately 30 European companies at the pre-seed and seed stages. The firm has already started deploying capital from the new vehicle and expects to lead most of the investment rounds it joins.
The latest fund is also significantly larger than DIG’s previous €90 million fund announced in 2025, giving the firm more capital to deploy into early-stage European technology companies.
New fund targets AI infrastructure and enterprise software
DIG Ventures is concentrating Fund III on what it describes as critical infrastructure layers supporting AI-native enterprise software.
The investment areas include data, identity, compliance and orchestration. These technologies sit behind AI applications and can determine how businesses manage information, authenticate users, meet regulatory requirements and coordinate different AI models or software systems.
The focus reflects a broader change in the startup market. As generative AI tools become easier to develop and deploy, investors are increasingly looking at the infrastructure companies that enable those applications to operate reliably inside businesses.
DIG Ventures said its investment thesis is based on the idea that falling software development costs will increase the importance of companies building scalable infrastructure and defensible technology around enterprise software.
For early-stage founders, this means the competition for venture capital is increasingly extending beyond AI applications themselves to the technology layers underneath them.
Institutional investors back DIG Ventures Fund III
Fund III has attracted a mix of institutional and entrepreneur-backed limited partners.
The institutional investors include Horsley Bridge, Sofina, Granite and a leading US university endowment. The fund also has entrepreneurial limited partners connected with the founders of Slack, Datadog, Nord Security, Cast AI, Supercell and Dash0.
The participation of technology founders gives the fund a network of experienced operators alongside its institutional capital base.
DIG Ventures operates with an operator-led investment model. Its team includes people with experience building and scaling software companies, rather than relying solely on traditional financial investment backgrounds.
The firm was founded in 2018 by Ross Mason, who previously founded MuleSoft. Salesforce acquired MuleSoft in 2018 for $6.5 billion. Mason later established DIG Ventures to invest in early-stage enterprise technology companies in Europe.
Ross Mason brings MuleSoft experience to European startups
Ross Mason’s background is central to DIG Ventures’ investment strategy.
Mason founded MuleSoft and helped build the company from an open-source integration project into a major enterprise software business. MuleSoft went public before being acquired by Salesforce.
At DIG Ventures, Mason is joined by Melissa Klinger and Rytis Vitkauskas. Klinger previously worked at MuleSoft, including as its UK sales lead, while Vitkauskas founded YPlan and later worked as a partner at Lightspeed Venture Partners.
The firm says its operating experience allows it to support founders with areas such as product development, hiring and go-to-market execution.
That approach is particularly relevant for technical startups. Building a sophisticated AI or infrastructure product is only one part of the challenge. Startups also need enterprise customers, distribution channels and the ability to expand beyond their initial markets.
DIG Ventures portfolio includes AI and cloud startups
DIG Ventures’ earlier investments provide an indication of the types of businesses it is targeting with the new fund.
Its Fund II portfolio includes Dash0, an AI-native observability company; Taktile, an AI decisioning platform; CUBE, a regulatory technology company; Jack & Jill, an AI-focused HR platform; and Nexos.ai, an AI orchestration company.
Several of these companies operate in areas closely connected to enterprise AI infrastructure.
Dash0 became a unicorn following a $110 million Series B in March 2026, according to DIG Ventures. Taktile also raised a $110 million Series C led by Goldman Sachs.
These portfolio developments are part of the evidence DIG Ventures is using to build its case for an operator-led approach to early-stage technology investing.
The firm has also recorded exits from companies including insurance infrastructure business Flock, data infrastructure company Tower and workload identity company Cofide.
European AI startups remain central to strategy
DIG Ventures is positioning Fund III around European founders, with an emphasis on helping them expand into international markets.
The firm says Europe has substantial technical talent but that startups can face challenges when moving from strong technology to global distribution. Its team intends to help portfolio companies develop their commercial operations and secure their first US customers.
This international focus is significant because enterprise software companies often need access to large global markets to reach substantial scale.
According to DIG Ventures’ internal portfolio data, 80% of its Fund II companies raised additional institutional capital within two years of DIG’s investment. The firm also said more than 90% of those companies entered the US market commercially within a year. These are DIG’s own portfolio figures and are not an independent industry benchmark.
Fund III will continue that approach by investing early and supporting companies as they move toward larger financing rounds and international expansion.
AI infrastructure funding enters a new phase
The DIG Ventures fundraise comes during a period when AI investment is expanding beyond model development and consumer applications.
Companies building foundation models and AI applications have attracted substantial amounts of capital, but the wider AI ecosystem also requires databases, cloud infrastructure, security, identity systems, compliance tools, observability platforms and orchestration technology.
These supporting businesses can become important as companies deploy AI across financial services, healthcare, enterprise software, manufacturing and other industries.
DIG Ventures is betting on this infrastructure layer at an early stage. By focusing on pre-seed and seed companies, the firm aims to invest before these businesses reach larger institutional funding rounds.
The strategy also gives the firm exposure to several parts of the AI technology stack rather than concentrating entirely on one type of AI application.
Fund III expands DIG Ventures’ European investment capacity
The €106 million Fund III gives DIG Ventures additional capital to build its portfolio at a time when European AI startups are competing for investment with companies in the US and other technology markets.
The fund is expected to back around 30 startups, meaning the average allocation across the entire vehicle would be substantial, although individual investment sizes will depend on each company’s financing round and DIG’s participation. The firm has not disclosed a fixed amount that every startup will receive.
DIG Ventures plans to lead most of the rounds it enters and has already begun deploying the new capital.
For European founders working on AI infrastructure, the new fund adds another dedicated source of early-stage capital. For DIG Ventures, Fund III represents an expansion of its strategy around enterprise software, cloud infrastructure and the technologies supporting the next generation of AI products.
Key Takeaways
- DIG Ventures has closed its third fund at €106 million, equivalent to about $120 million.
- Fund III will target around 30 European pre-seed and seed-stage companies.
- The fund will focus on AI infrastructure areas including data, identity, compliance and orchestration.
- DIG Ventures plans to help portfolio companies expand internationally, particularly into the US market.
FAQ
How much did DIG Ventures raise in Fund III?
DIG Ventures closed Fund III at €106 million, approximately $120 million. The fund is the firm’s third investment vehicle and is focused on early-stage European technology companies.
What types of startups will DIG Ventures Fund III invest in?
The fund will invest primarily in European pre-seed and seed-stage companies building AI-native enterprise software and cloud infrastructure. Key areas include data, identity, compliance and orchestration.
How many startups does DIG Ventures plan to back?
DIG Ventures expects Fund III to back approximately 30 European companies. The firm intends to lead most of the rounds in which it participates and has already started deploying capital.
Who founded DIG Ventures?
DIG Ventures was founded by Ross Mason, the founder of MuleSoft. The firm’s current partner team includes Mason, Melissa Klinger and Rytis Vitkauskas.
