DIG Ventures in London Completes $120 Million Third Fundraising Round, Equivalent to Approximately €106 Million
DIG Raises $120 Million for European AI Infrastructure
DIG Ventures in London has completed its third fundraising round, raising $120 million, equivalent to approximately €106 million, aimed at European pre-seed and seed-stage AI-native enterprise software and cloud infrastructure.
Institutional investors include Horsley Bridge, Sofina, Granite, and a top U.S. university endowment fund. Founders contributing include those behind Slack, Datadog, Nord Security, Cast AI, Supercell, and Dash0. The fund plans to cover about 30 European companies, taking the lead in most rounds, with funds already being deployed.
Investments are focused on data, identity verification, compliance, and orchestration, as AI makes software faster and cheaper, these control layers will determine whether enterprise software can be built and distributed. The company refers to this layer as the "engine room" of AI, rather than application layer products.
The fund is managed by Ross Mason, Melissa Klinger, and Rytis Vitkauskas. Mason is the founder of enterprise integration company MuleSoft, which was acquired by Salesforce for $6.5 billion; Klinger was the UK sales lead at MuleSoft; Vitkauskas founded YPlan and was a partner at Lightspeed Venture Partners. DIG was established in 2018.
The second phase was its first institutional fund, ranking in the global top 10 according to Carta's same-year, same-scale benchmarks. The portfolio includes the AI observability platform Dash0, which reached a $1 billion valuation after a $110 million Series B round in March 2026; decision platform Taktile, which raised $110 million in a Series C round led by Goldman Sachs; and regulatory technology CUBE, whose products are used by over 30 global financial institutions. Other investments include Jack & Jill and Nexos.ai. In April 2025, it completed a €90 million early-stage fund.
Exits realized include: insurance infrastructure Flock acquired by Admiral for $109 million, data infrastructure Tower acquired by MotherDuck, and workload identity platform Cofide acquired by Keyfactor.
Market-wise, this fundraising completion drives primary market investments, not secondary transactions. Buyers include endowment funds, family office LPs, and exited founders, while sellers are early European companies relinquishing seed round leadership. Money flows from U.S. institutional accounts to European data, identity, compliance, and orchestration layers. Beneficiaries are control layer companies that can secure leading checks, while those merely co-investing in the same round and projects stuck at the application layer without infrastructure pricing power face pressure.
Source: Public Information
ABAB AI Insight
Mason's path is to first make enterprise integration a pipeline that can be acquired. MuleSoft was bought by Salesforce for $6.5 billion, acquiring the connection layer between systems, not the end applications. DIG has been building early-stage funds along this line since 2018, with the second phase becoming an institutional vehicle, focusing on observable, decision-making, and regulatory interfaces like Dash0, Taktile, and CUBE, with exits falling to Flock, Tower, and Cofide being acquired by industry buyers.
The third phase moves $120 million from Horsley Bridge, Sofina, Granite, and U.S. university endowment funds, along with founders from Slack, Datadog, Nord Security, Cast AI, Supercell, and Dash0, to about 30 European seed leading checks. The motivation is that as software generation costs decrease, the bottleneck shifts from writing features to data, identity, compliance, and orchestration. The strategy is to secure control points with leadership rather than competing with Goldman Sachs and large growth funds for Series C pricing later.
The industry position is during an infrastructure expansion phase, not a crowded application layer phase. In comparison, Salesforce's acquisition of MuleSoft to enhance integration, Datadog turning observability into a subscription, and Keyfactor acquiring workload identity, DIG is replicating the path of "occupying the pipeline first and then being acquired by industrial capital" in Europe. Dash0 reaching $1 billion and Taktile securing Goldman Sachs as a lead investor indicates that the second phase has already delivered control layer companies to growth rounds.
Structurally, this belongs to a reconstruction of the industrial chain. AI has driven down production costs at the application layer, shifting value to those who can grant access to data, identity, and compliance. The mechanism is: the cheaper generation becomes, the more expensive distribution and auditing become; seed leadership determines who will sell these layers to enterprise buyers later, rather than who first creates a chat interface.
ABAB News · Cognitive Law
When applications become cheaper, pipelines start to rise in price
Seed leadership is the ticket for future acquisitions
The faster generation, the more expensive identity and compliance become