DIG Ventures Closes Its Third $120 Million AI Fund

London-based DIG Ventures has closed its third fund at $120 million, aiming to invest in approximately 30 European pre-seed and seed-stage companies building artificial intelligence and cloud computing infrastructure. The Next Web reported these details.

The fund was founded by Ross Mason, founder of MuleSoft, and targets what he describes as "control points" in technical infrastructure, the layers that are difficult to bypass when operating digital services. The firm stated that it has already begun deploying capital and intends to lead most of the rounds it participates in rather than merely contributing.

Investors in the fund include Horsley Bridge, Sofina, Granite, and an undisclosed US university endowment, alongside founders from companies such as Slack, Datadog, Nord Security, CAST AI, Supercell, and Dash0. The involvement of these founders means the fund relies on a network of tech relationships rather than capital alone.

The fund's closure comes as European investments in AI infrastructure are rising, with governments and companies seeking to reduce reliance on providers outside the continent. The fund's investments concentrate on the layers startups depend on to run their models, areas requiring less capital than building full data centers. The European market remains less concentrated than its US counterpart, giving early-stage funds room to acquire stakes in companies before their growth, which is the underlying logic of this fund.

What do these terms mean?

Pre-seed and Seed: The earliest stages of startup funding. Venture Capital Fund: An entity that pools money from investors to invest in companies in exchange for equity. Limited Partners: Investors who place their money in the fund without managing its day-to-day investments. Technical Infrastructure: The components and services on which digital applications operate.