London-based venture capital firm DIG Ventures has closed a $120 million third fund to back around 30 early-stage European startups building the infrastructure behind artificial intelligence.
Fund III will focus on pre-seed and seed-stage companies working across AI-native enterprise software and infrastructure, including the data, identity, compliance and orchestration layers that increasingly sit underneath AI products.
DIG expects to invest between $1 million and $5 million in companies and plans to lead most of the rounds it participates in. The fund has already started deploying capital.
Who is backing DIG Ventures’ new fund?
The fund’s institutional backers include Horsley Bridge, Sofina and Granite, alongside a US university endowment. A group of technology founders have also invested, including entrepreneurs behind Slack, Datadog, Nord Security, Cast AI, Supercell and Dash0.
DIG Ventures was founded by Ross Mason, who previously founded MuleSoft before the software company was acquired by Salesforce for $6.5 billion in 2018. Mason runs DIG alongside Melissa Klinger, formerly MuleSoft’s UK sales lead, and Rytis Vitkauskas, a former Lightspeed Venture Partners partner and co-founder of YPlan.
The firm’s investment thesis is centred on a shift it believes AI is creating in software. As generative AI makes it faster and cheaper to build applications, DIG argues that more durable value could move towards the infrastructure, data and control layers on which those applications depend.
What kind of AI startups is DIG Ventures looking for?
For founders in the UK and across Europe, the new fund is particularly relevant to companies building technical infrastructure rather than another consumer-facing AI application.
DIG says it backs B2B SaaS, AI and cloud infrastructure businesses at pre-seed and seed stage. Its areas of interest include the systems companies need to manage data, identity, compliance and orchestration as AI becomes more deeply embedded in enterprise software.
The firm also places an emphasis on helping European companies expand internationally, particularly into the US. DIG says more than 90% of Fund II companies that had launched a product entered the US market within 12 months.
That international expansion support could be important for UK-based technical founders trying to turn early product traction into larger enterprise businesses.
DIG’s existing AI portfolio
The new fund follows several significant outcomes across DIG’s existing portfolio.
Observability startup Dash0, which DIG backed at pre-seed, raised a $110 million Series B in March at a $1 billion valuation. Taktile, which develops AI infrastructure for financial institutions, later raised a $110 million Series C led by Goldman Sachs Alternatives.
DIG has also recorded exits including Flock, acquired by Admiral, and Tower, acquired by MotherDuck.
Fund III is 20% larger than DIG’s $100 million second fund, which closed in 2025.
What this means for UK AI founders
The launch adds another sizeable pool of early-stage capital for technical founders building AI companies from the UK and Europe at a time when much of the funding conversation has concentrated on large model developers and later-stage AI businesses.
For founders, however, the distinction in DIG’s strategy matters. The firm is not positioning the $120 million fund as a general AI fund. Its focus is on companies building the underlying enterprise infrastructure that other AI products and businesses rely on.
DIG Ventures says founders building in enterprise infrastructure and AI can contact the firm directly through its website.
Sources: DIG Ventures, TNW and Tech.eu.
