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

European venture capital firm DIG Ventures has successfully closed its third fund, Fund III, with a total investment of $120 million. The fund aims to invest in early-stage companies that are building AI-native enterprise and cloud infrastructure. Among the limited partners are Horsley Bridge, Sofina, Granite, and a prominent US university endowment fund. Notable entrepreneurs who are limited partners include founders of Slack, Datadog, Nord Security, Cast AI, Supercell, and Dash0.

DIG Ventures plans to support approximately 30 European companies at the pre-seed and seed stages, with a focus on infrastructure that underpins AI-native enterprise software. The company intends to lead most of the investment rounds and has already started deploying capital from the fund. DIG's investment strategy centers around the infrastructure required for AI to make software development faster and more cost-effective.

The fund expects areas such as data, identity, compliance, and orchestration to gain increasing importance as companies strive to develop and distribute enterprise software.

Ross Mason, the founding partner at DIG Ventures and a former CEO of MuleSoft, a company acquired by Salesforce for $6.5 billion, expressed conviction in the fund's thesis. He stated that truly scalable, defensible companies will be those building the foundations upon which wider enterprise software depends. As development accelerates and differentiation becomes less significant, the value of these foundational companies will compound.

Founded in 2018, DIG Ventures is led by Ross Mason, Melissa Klinger, and Rytis Vitkauskas. The team brings extensive operating experience to support portfolio companies, particularly in developing go-to-market strategies and expanding internationally. According to internal portfolio data, 80% of Fund II companies raised additional institutional capital within two years of DIG's investment, while over 90% of commercially launched Fund II companies entered the US market within 12 months.

DIG has also recorded several portfolio exits, including the acquisition of insurance infrastructure company Flock by Admiral for $109 million, data infrastructure platform Tower by MotherDuck, and workload identity platform Cofide by Keyfactor. With Fund III, DIG aims to continue supporting European founders developing AI infrastructure while assisting portfolio companies in pursuing international growth.