Austin's S3 Ventures Celebrates 20 Years and Announces $250M Fund VIII
Early-Stage VC Provides Patient Capital for Founders Nationwide with $1B+ AUM from a Single LP
S3 Ventures, one of the largest and longest-serving venture capital firms in Texas, today announced its eighth fund—sized at $250 Million. Celebrating its twentieth year, the firm now manages over $1 Billion in assets with 40+ active portfolio companies nationwide.
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Front Row: Anthony Marfisi, Eric Engineer, Kathryn Deebel, Aaron Perman, Charlie Plauche; Back Row: Shelley Graves, Brian R. Smith, Will Omberg, Joe Curry, Nicole Bentz, Sarah, Morgan, Kevin Haley
Since its founding in 2005, S3 Ventures has been backed by one limited partner—a highly philanthropic family with a multibillion-dollar foundation—focused on empowering children and families. With its single-LP structure, the firm is undistracted by fundraising and unencumbered by timing constraints, providing focused support and patient capital aligned with a founder's long-term vision.
"Our LP's commitment to an eighth fund is a reflection of our team's consistency in identifying and supporting visionary entrepreneurs re-imagining software and healthcare," said Brian R. Smith, Founder and Managing Director of S3 Ventures. "Over the past two decades, we navigated multiple market cycles with a patient, long-term perspective—shaped by our operationally-oriented approach. With 13 investments year-to-date, 2025 has been the most active year in our history."
With the new fund, S3 Ventures has also promoted Eric Engineer and Aaron Perman to General Partner. Earlier this year, the firm celebrated the promotion of Joe Curry to Principal—along with several other team promotions and additions—bringing the entirely Austin-based team to 12.
"We have 40+ active companies with nearly half in Texas and the rest spread across 12 states," notes Charlie Plauche, S3 Ventures General Partner. "We believe talented founders are everywhere, and so we do not limit our geography. However, we do believe startups benefit from being in technology hubs like Austin—where they have access to startup talent, mentorship, and capital. As we enter an AI-driven era, we are committed to building lasting partnerships with founders and investors in both Texas and nationwide."
With Fund VIII, the firm will continue to lead Seed, Series A, and Series B rounds—with initial checks ranging from $500,000 to $15 Million and the capacity to invest over $25 Million throughout the life of a company. Business software and healthcare technology will remain focus areas with roughly half the fund to be invested in Texas and the remainder ready to back founders across the country.
As of December 2025:
- Since its founding, S3 Ventures has invested in 75+ startups that raised over $3.5 Billion.
- The team manages 40+ active portfolio companies across Texas and 12 other states.
- The firm has realized 35+ exits—collectively valued at over $3 Billion.
- A sampling of notable investments includes Alkami Technology (NASDAQ:ALKT), Levelset (acquired by Procore), Favor (acquired by HEB), Alleviant, Atmosphere TV, Interplay Learning, Hydrolix, and QbDVision.
"S3 was our first institutional investor, and they've been true partners every step of the way. As a portfolio company, you don't just get capital—you get access to a team that shows up, digs in, and helps solve real problems. They led multiple rounds and supported us on key strategic decisions, executive recruiting, securing an independent board director, and raising follow-on financing from world-class investors," said Doug Donovan, Founder and CEO of Austin-based Interplay Learning—which has raised $75 Million and served more than 600,000 learners on its AI-powered platform.
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Kathryn Deebel
S3 Ventures
[email protected]