London-based DIG Ventures has closed Fund III at $120m, backed by Horsley Bridge, Sofina and Granite, and plans to invest in about 30 European companies at pre-seed and seed. The firm intends to lead most of those rounds and has already started deploying.
DIG Ventures was founded in 2018 by Ross Mason, the founder of MuleSoft, the enterprise integration company Salesforce bought for $6.5bn. He runs the firm with Melissa Klinger, formerly MuleSoft's UK sales lead, and Rytis Vitkauskas, the founder of YPlan and a former partner at Lightspeed Venture Partners.
The firm has now closed its third fund at $120m. The vehicle will back early-stage companies building AI-native enterprise software and the cloud infrastructure beneath it.
The LP base
Institutional backers named in Fund III include Horsley Bridge, Sofina and Granite, alongside a US university endowment that was not identified. The split of commitments between them was not disclosed.
A second group of limited partners is made up of entrepreneurs. It includes founders behind Slack, Datadog, Nord Security, Cast AI, Supercell and Dash0, the last of which is itself a DIG portfolio company.
How the money will be deployed
DIG plans to back roughly 30 companies from the fund, all in Europe and all at pre-seed or seed. On a simple average that implies about $4m per company across initial cheques and reserves, although the firm has not published its allocation model or target ownership.
The firm expects to lead most of the rounds it joins. For founders, that means DIG will typically be the investor setting price and terms rather than filling out a syndicate.
The thesis is that falling software development costs erode differentiation at the application layer, pushing value towards the foundations other products depend on. DIG has named data, identity, compliance and orchestration as the areas it expects to matter most.
Track record
Fund II was DIG's first institutional vehicle. Its portfolio includes observability platform Dash0, decision platform Taktile, regulatory technology company CUBE, AI recruitment platform Jack & Jill and orchestration platform Nexos.ai.
According to the firm's own portfolio data, 80% of Fund II companies raised further institutional capital within two years of DIG's investment. More than 90% of those that had launched commercially entered the US market within 12 months.
Realised exits so far include insurance infrastructure company Flock, bought by Admiral for $109m, data platform Tower, acquired by MotherDuck, and workload identity company Cofide, acquired by Keyfactor. Terms of the latter two deals were not disclosed.
What's next
Deployment from Fund III is under way, though DIG has not named its first investments from the vehicle.
With about 30 positions planned and lead status in most, the fund's returns will depend on DIG securing meaningful stakes at the earliest priced rounds, before larger multi-stage investors arrive.
Original source: Tech.eu — https://tech.eu/2026/10/01/dig-ventures-closes-120m-fund-iii-to-back-europes-ai-infrastructure-startups/
