The Rise of Operator VCs in Europe: A New Wave of Venture Capital
In recent years, Europe has seen a growing trend of “operator VCs” — individuals who transition from being successful founders to venture capitalists. This shift mirrors the landscape in the U.S., where many venture capitalists come from entrepreneurial backgrounds. In Europe, however, venture capital has traditionally been dominated by professionals with roots in banking or finance. Yet, the emergence of former founders like Taavet Hinrikus of Wise, Oscar Pierre of Glovo (Yellow Fund), and Christian Reber of Pitch signals a potential transformation.
DIG Ventures: An Operator-Led Approach to Venture Capital
One notable example of this trend is DIG Ventures, founded by Ross Mason, the creator of MuleSoft. After selling MuleSoft to Salesforce for $6.5 billion in 2018, Mason initially established DIG as a family office before evolving it into a full-fledged venture capital firm. Partnering with Melissa Klinger, who previously led U.K. sales at MuleSoft, DIG recently launched its second fund, marking its first institutional round. The fund successfully closed at $100 million, earmarked for investments in B2B SaaS, AI, and cloud infrastructure startups, primarily targeting pre-seed and seed-stage companies across Europe, Israel, and the U.S.
LP Backing and Strategic Partnerships
The new fund has attracted backing from prominent limited partners such as The Hillman Company, Granite Capital, Sofina, and Grove Street. Notable participants also include Datadog founder Olivier Pomel and several former MuleSoft executives. This diverse group of investors underscores the confidence in DIG’s mission and strategy.
DIG positions itself as an operator-led fund, emphasizing hands-on involvement in portfolio companies. With a team that includes Rytis Vitkauskas, founder of YPlan and former partner at Lightspeed, and Scott Grimes, co-founder of Stackin’ and Uproxx, DIG brings together seasoned operators capable of offering actionable insights on go-to-market strategies and execution.
A Growing Portfolio and Strategic Investments
DIG’s portfolio already includes innovative companies such as People.ai, Karat, Bubble, ComplyAdvantage, PlanetScale, Rasa, Taktile, Rossum, Flock, and Prophecy. The second fund has begun deploying capital, investing in promising ventures like Dash0, an observability platform; Nexos.ai, an AI orchestration platform; and PolyAPI, an enterprise middleware provider.
Founders Speak: Why DIG Stands Out
Ross Mason shared his vision with TechCrunch, stating, “After MuleSoft, I saw a big opportunity to come back to Europe and build an operator-led fund. We managed to figure out a strategy where we could pick and meet founders quicker and earlier than most other funds.”
Melissa Klinger echoed this sentiment, highlighting DIG’s unique approach: “Founders tell us that we just engage with them on a conversational level because we’ve come out of MuleSoft. We like taking very technical products and selling them well. And that is half the battle in this space.”
Klinger emphasized the fund’s expertise in highly technical products, noting, “Go-to-market is something DIG knows intimately. Going from zero to one and actually helping package that and selling it is not something any VC can do — but we can.”
The Future of AI and Enterprise Innovation
Mason expressed optimism about enterprises building their own AI solutions, calling it “a new arms race, especially with LLMs being built and run within enterprises.” He noted that while the foundation layer of AI is still evolving, much of it will eventually become packaged open source as companies seek greater control over their data.
Klinger highlighted Europe’s untapped potential in AI, saying, “I think Europe’s a real dark horse in AI. We’ve got the talent at half the cost of the U.S. A lot of the brilliant research is coming out of our universities. The challenge we have is raising the amount of money that some of these AI-driven plays will need.”
Why Operator VCs Are Gaining Ground in Europe
The influence of operator VCs in the U.S., exemplified by figures like Peter Thiel, Paul Graham, and Marc Andreessen, demonstrates the value of entrepreneurial experience in venture capital. As geopolitical factors create economic uncertainty and early-stage momentum grows in Europe, the region may well see a rise in operator-led venture capital. These individuals bring firsthand knowledge of scaling businesses, navigating challenges, and executing strategies that resonate deeply with founders.
Conclusion: A Transformative Era for European Venture Capital
The increasing presence of operator VCs in Europe reflects a broader shift toward a more founder-centric approach to venture capital. By combining deep operational expertise with strategic investment, funds like DIG Ventures are poised to play a pivotal role in shaping the future of innovation across Europe and beyond. As the ecosystem evolves, the blend of entrepreneurial insight and financial acumen promises to unlock unprecedented opportunities for startups and investors alike.
