The European venture capital landscape is witnessing a significant rise in "operator VCs" – individuals who've successfully built and exited startups before turning to investment. While this model is common in the US, it's a newer, exciting trend here in Europe. Following in the footsteps of notable founders like Taavet Hinrikus (Wise) and Oscar Pierre (Glovo), DIG Ventures is making waves with its latest announcement.
Founded by Ross Mason, who successfully exited MuleSoft to Salesforce in a landmark $6.5 billion deal in 2018, DIG Ventures began as a family office. Alongside Partner Melissa Klinger (former MuleSoft UK sales lead), Mason has now transitioned DIG into a full-fledged VC, launching its second, and first institutional, fund. This new powerhouse fund closes at $100 million, ready to inject capital into promising B2B SaaS, AI, and cloud infrastructure startups.
Built by Operators, For Operators: The DIG Ventures Difference
What sets DIG Ventures apart? It's their deep operational experience. Unlike many traditional European VCs who come from finance backgrounds, the DIG team has firsthand experience building and scaling tech companies. This "operator-led" approach means they offer more than just capital; they provide hands-on guidance, particularly excelling in go-to-market strategy and execution – critical hurdles for early-stage companies.
"Founders tell us that we just engage with them on a conversational level because we’ve come out of MuleSoft," explains Klinger. "We like taking very technical products and selling them well. And that is half the battle in this space."
The core team, led by Mason and Klinger, also includes Rytis Vitkauskas (founder of YPlan, acquired by Time Out, and former Lightspeed partner) and Scott Grimes (co-founder of Stackin’ and Uproxx, acquired by Warner Music). Their collective experience offers invaluable insights for the founders they back.
Targeting Tomorrow's Tech Leaders: Investment Focus and Strategy
This freshly secured $100 million fund is earmarked for pre-seed and seed-stage investments. While the primary focus is on nurturing talent across Europe, DIG Ventures keeps its doors open to exceptional founders in Israel and the US as well.
Their investment sweet spot lies in technically complex products within B2B SaaS, Artificial Intelligence (AI), and Cloud Infrastructure.
"After MuleSoft, I saw a big opportunity to come back to Europe and build an operator-led fund," Mason notes. "And we managed to figure out a strategy where we could pick and meet founders quicker and earlier than most other funds."
Klinger emphasizes their strength: "Going from zero to one and actually helping package that and selling it is not something any VC can do — but we can."
Strong Backing and a Growing Portfolio of Innovators
The confidence in DIG Ventures' model is reflected in its impressive list of Limited Partners (LPs). The new fund is backed by respected names such as The Hillman Company, Granite Capital, Sofina, and Grove Street. Adding further validation, Datadog founder Olivier Pomel and several MuleSoft executives have also participated.
DIG Ventures isn't new to identifying winners. Their existing portfolio boasts impressive companies like People.ai, Karat, Bubble, ComplyAdvantage, PlanetScale, Rasa, Taktile, Rossum, Flock, and Prophecy.
Capital from this second fund is already being deployed, with recent investments including the observability platform Dash0, AI orchestration platform Nexos.ai, and enterprise middleware provider PolyAPI.
Navigating the Future: Insights on AI and the European Tech Scene
Looking ahead, Mason sees a major shift towards enterprises developing their own AI capabilities. "It’s a new arms race, especially with LLMs being built and run within enterprises," he observes, predicting a rise in packaged Open Source solutions as companies prioritize data control.
Klinger believes Europe is well-positioned to capitalize on the AI revolution. "I think Europe’s a real dark horse in AI. We’ve got the talent at half the cost of the US. A lot of the brilliant research is coming out of our universities." She acknowledges the challenge lies in securing the substantial funding rounds often required by AI-driven companies.
A New Chapter for European Venture Capital?
The rise of operator VCs like DIG Ventures, combined with strong early-stage momentum, could mark a significant evolution in the European tech ecosystem, mirroring the influential founder-turned-investor path seen in the US. With $100 million in fresh capital and a team equipped with deep operational know-how, DIG Ventures is certainly a firm to watch as it seeks to cultivate the next generation of European tech leaders.
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