Vermilion Cliffs Ventures, a firm led by solo female general partner Ashley Smith, has successfully closed its second fund at $25 million. This new capital injection will continue the firm's strategy of investing in early-stage technical founders. The fund specifically targets companies developing solutions in AI infrastructure, security, and developer tooling, reinforcing its specialized investment thesis.
Building on a Strong Foundation
The new $25 million fund represents a significant increase from the firm's $13 million debut fund, which backed 35 companies. Smith secured the new capital in approximately four months, with an impressive 95 percent of existing investors, by dollar amount, recommitting. This strong backing from limited partners, including anchors like LGT Capital, Screendoor, and GEM, signals confidence in the firm's vision.
With Fund II, Vermilion Cliffs Ventures plans to write checks ranging from $500,000 to $1 million for each investment. The firm aims to build a concentrated portfolio of at least 25 companies over the next two and a half years. Six investments from the new fund have already been completed, demonstrating a swift and decisive deployment of capital into promising startups.
Strategic Focus and Founder Support
The firm maintains its core thesis of backing technical founders who are building products for other technical users. Smith leverages her extensive operator experience from marketing roles at major tech companies like Twilio, Facebook, GitHub, and GitLab. Her goal is to provide portfolio companies with practical go-to-market guidance, helping them navigate the unique challenges of selling to developer and security teams.
Smith emphasizes that her approach is designed to help founders build sustainable revenue streams rather than just focusing on raising the next funding round. By sharing lessons learned from her own career, she aims to help entrepreneurs avoid common and costly mistakes. This hands-on, operator-led model is a key differentiator for the firm in a crowded early-stage venture landscape.
Expanding the Team and Expertise
To scale its support for founders, Vermilion Cliffs Ventures has expanded its team with the addition of Meghan Murphy. A former colleague of Smith's, Murphy brings deep expertise in technical go-to-market strategy. Her addition is a strategic move to ensure portfolio companies receive dedicated support and that Smith herself does not become a bottleneck as the firm grows.
Early Successes and Future Outlook
The confidence in Fund II is bolstered by the notable progress of companies from the firm's initial fund. Portfolio successes include the cybersecurity startup Keycard, which recently emerged from stealth, and AI infrastructure company CopilotKit, which secured its Series A funding. Additionally, portfolio company Sequin was successfully acquired by Notion, providing an early validation of the firm's investment strategy.
The closing of Vermilion Cliffs Ventures' $25 million Fund II marks a significant milestone for Ashley Smith and the firm. It not only provides substantial capital to support the next wave of technical innovators but also reinforces the value of an operator-led investment model. With an expanded team and a proven thesis, the firm is well-positioned to make a lasting impact on the AI and developer tooling sectors.