DIG Ventures closes $120M third fund for pre-seed and seed AI infrastructure

The size and LP list matter more than the thesis: Horsley Bridge, Sofina and a university endowment are institutional allocators who could have backed generalist funds, so their willingness to anchor a sector-specific vehicle signals that AI infrastructure is being underwritten as a durable category rather than a momentum trade. The stated focus on data, identity, compliance and orchestration is also telling — these are the unglamorous layers that enterprises need before AI deployments scale, and a fund willing to lead pre-seed and seed rounds in them is effectively betting on governance and plumbing rather than model hype. Whether other institutional LPs follow into similarly narrow vehicles is the open question.