Rise of Operator-Led Venture Capital in Europe

Europe is witnessing a rise in 'operator VCs,' former founders transitioning into venture capital roles. DIG Ventures, co-founded by Ross Mason, exemplifies this trend with its $100 million fund targeting B2B SaaS, AI, and cloud infrastructure startups. The fund's hands-on approach and expertise in go-to-market strategies position it as a key player in the European tech landscape. As geopolitical factors and early-stage momentum converge, Europe could become a hub for operator VCs, driving innovation and growth.

In recent years, Europe has seen a notable increase in the number of 'operator VCs,' a trend long established in the United States. Unlike the U.S., where many venture capitalists (VCs) are former founders, Europe's VC landscape has traditionally been dominated by professionals from banking or finance backgrounds. However, this is changing as more former founders are transitioning into venture capital roles. Notable examples include Taavet Hinrikus of Wise, Oscar Pierre of Glovo, and Christian Reber of Pitch.

A significant player in this shift is DIG Ventures, co-founded by Ross Mason, who previously sold MuleSoft to Salesforce for $6.5 billion, and Melissa Klinger, former U.K. sales lead at MuleSoft. DIG Ventures has launched its second fund, its first institutional fund, closing at $100 million. This fund targets B2B SaaS, AI, and cloud infrastructure startups at pre-seed and seed stages, primarily across Europe, with some investments in Israel and the U.S.

DIG Ventures positions itself as a hands-on, operator-led fund, offering expertise in go-to-market strategies and execution. The fund's team includes Rytis Vitkauskas, founder of YPlan, and Scott Grimes, co-founder of Stackin’ and Uproxx. The portfolio features companies like People.ai, Karat, Bubble, and ComplyAdvantage. Recent investments include Dash0, Nexos.ai, and PolyAPI.

Mason and Klinger emphasize the importance of engaging with founders on a conversational level, leveraging their experience from MuleSoft. They focus on highly technical products, with a strong understanding of the go-to-market process. Mason predicts a significant shift in enterprises building their own AI solutions, particularly with the development of large language models (LLMs). Klinger highlights Europe's potential in AI, citing its talent pool and academic research, despite challenges in funding.

This trend towards operator-led VCs in Europe mirrors the influence of U.S. figures like Peter Thiel and Marc Andreessen. As geopolitical factors and early-stage momentum converge, Europe could become a hub for operator VCs, driving innovation and growth in the tech sector.