Vermilion Cliffs Ventures, the investment firm spearheaded by solo General Partner Ashley Smith, has announced the successful closure of its second fund, securing £19.5 million (approximately $25 million USD). The firm, established in 2023 by Smith, an operator-turned-investor, is notable for being one of the few venture capital firms led by a solo woman GP.
The new fund, which took approximately four months to raise, will continue the firm's strategic focus on backing technical founders. Specific areas of interest include companies developing in AI infrastructure, security solutions, and developer tools. Much of the capital for this Fund II reportedly came from existing investors, underscoring confidence in Smith's investment thesis and approach.
Investment cheques from Fund II are anticipated to be between £390,000 and £780,000 (approximately $500,000 and $1 million USD). Vermilion Cliffs Ventures aims to invest in at least 25 companies over the next two and a half years, having already supported six businesses through this new fund. The firm's initial fund, which closed with £10.1 million (approximately $13 million USD), backed 35 companies, including the cybersecurity startup Keycard and the AI infrastructure company CopilotKit.
Smith emphasised her commitment to assisting founders beyond just securing subsequent funding rounds. Drawing on her extensive marketing background at tech giants such as Twilio, Facebook, GitHub, and GitLab, she intends to provide strategic guidance on go-to-market strategies. Smith noted that selling to developers and security teams is a specialised skill often learned through costly trial and error, and she aims to help founders avoid common mistakes.
This development comes at a time of significant growth and innovation within the AI and cybersecurity sectors globally. Investment in these areas is crucial for developing the foundational technologies that underpin modern digital economies. The focus on early-stage companies also highlights the importance of nurturing nascent ventures that could become future industry leaders.