Dig Ventures Secures $100M for European Startups

The Rise of Operator VCs in Europe

A growing trend in Europe sees more venture capital firms being led by individuals with backgrounds as startup founders – often referred to as “operator VCs.” This mirrors a well-established pattern in the United States, where a significant proportion of VCs are former entrepreneurs. Conversely, Europe traditionally saw most VCs originate from banking and financial sectors.

Notable examples of this shift in Europe include Taavet Hinrikus, the founder of Wise, Oscar Pierre of Glovo (through Yellow Fund), and Christian Reber, who founded Pitch.

Dig Ventures Launches Second Fund

Following the $6.5 billion acquisition of MuleSoft by Salesforce in 2018, Ross Mason established Dig Ventures, initially as a family office. It subsequently evolved into a venture capital firm, alongside Melissa Klinger, a Dig partner and formerly the U.K. sales lead at MuleSoft.

Dig Ventures has recently finalized its second – and inaugural institutional – fund, securing $100 million in commitments. This fund will focus on investments in B2B SaaS, Artificial Intelligence (AI), and cloud infrastructure startups, primarily within Europe, with consideration also given to ventures based in Israel and the United States.

Fund Backing and Key Investors

The new fund benefits from backing from Limited Partners (LPs) such as The Hillman Company, Granite Capital, Sofina, and Grove Street. Additional participation in the round came from Olivier Pomel, founder of Datadog, and a number of executives from MuleSoft.

An Operator-Led Approach

Dig Ventures differentiates itself by emphasizing its foundation built by former startup operators. This allows the firm to offer practical, hands-on support to portfolio companies, particularly in areas like go-to-market strategy and its effective implementation.

Expanding the Dig Ventures Team

Joining Mason and Klinger are Rytis Vitkauskas, previously founder of YPlan (acquired by Time Out) and a partner at Lightspeed, and Scott Grimes, co-founder of Stackin’ and Uproxx (acquired by Warner Music).

Current Portfolio Companies

Dig Ventures’ current investment portfolio includes companies like People.ai and Karat, alongside Bubble, ComplyAdvantage, PlanetScale, Rasa, Taktile, Rossum, Flock, and Prophecy.

Recent Investments

The second fund has already begun deploying capital, with recent investments in observability platform Dash0, AI orchestration platform Nexos.ai, and enterprise middleware provider PolyAPI.

Insights from Ross Mason

“After my experience with MuleSoft, I recognized a significant opportunity to return to Europe and establish a fund led by operators,” stated Mason in an interview with TechCrunch. “We’ve developed a strategy that enables us to identify and connect with founders more rapidly and at an earlier stage than many other funds.”

Melissa Klinger on Founder Engagement

Klinger added, “Founders consistently mention that our interactions are more conversational, stemming from our experiences at MuleSoft. We excel at effectively marketing and selling highly technical products, which is often a crucial challenge.”

Go-to-Market Expertise

She further explained that while the fund focuses on technically sophisticated products, “go-to-market” strategy is an area where Dig possesses deep expertise. “Successfully transitioning from initial development to market launch and effective sales requires a skillset that many VCs lack – but we deliver,” Klinger emphasized.

The Future of AI in Enterprises

Mason predicts a significant shift towards enterprises developing their own AI capabilities. “We’re witnessing a new competitive landscape, particularly with the emergence and deployment of Large Language Models (LLMs) within organizations. The foundational infrastructure is still evolving, and much of it will likely become packaged open source, as companies seek to maintain control over their data and prevent its transmission to external cloud-based LLMs.”

Europe’s Potential in AI

Klinger believes Europe possesses untapped potential in the field of AI. “Europe represents a significant, yet often overlooked, force in AI. We offer access to skilled talent at a lower cost compared to the U.S., and our universities are producing groundbreaking research. The primary challenge lies in securing the substantial funding required by many AI-driven ventures.”

The “Operator VC” Market

In the United States, former founders and operators – such as Peter Thiel, Paul Graham, and Marc Andreessen – have become highly influential figures in the venture capital landscape. Given the current geopolitical climate and the growing momentum of early-stage companies in Europe, the region may be poised to become a prominent “operator VC” market.