S3 Ventures is an Austin-based venture capital firm founded in 2005 and one of the longest-operating VC firms in Texas. The firm has built a national reputation for providing patient, founder-aligned capital to early-stage companies, supported by a highly differentiated single-LP structure. Now celebrating 20 years of activity, S3 Ventures manages over $1 billion in assets and backs founders across the US, with deep roots in Texas and a strong operational approach shaped by multiple market cycles.
S3 Ventures focuses on early-stage technology and healthcare companies, with particular strength in business software and healthcare technology. The firm invests in founders rethinking enterprise workflows, vertical software, and tech-enabled healthcare solutions, with increasing attention to AI-driven applications embedded within these sectors. S3 looks for companies addressing real operational problems with scalable, durable business models.
S3 Ventures recently announced the close of its eighth fund, Fund VIII, at $250 million, bringing total assets under management to more than $1 billion. The fund continues S3’s long-standing relationship with a single limited partner, a philanthropic family with a multibillion-dollar foundation focused on empowering children and families. This structure allows S3 to remain free from fundraising cycles and timing pressure, enabling long-term decision-making and patient support for founders.
Fund VIII will continue S3’s strategy of leading Seed, Series A, and Series B rounds, with initial checks ranging from $500,000 to $15 million and the capacity to invest more than $25 million per company over time. Roughly half of the fund is expected to be deployed in Texas, with the remainder backing founders across the US. The firm reported 13 investments in 2025, making it the most active year in its history.
Leadership
S3 Ventures was founded by Brian R. Smith, who serves as Founder and Managing Director. The firm is led by a fully Austin-based team of 12 investors and operators. Recent leadership promotions include Eric Engineer and Aaron Perman to General Partner, and Joe Curry to Principal. The broader partnership includes Charlie Plauche and other long-tenured team members with deep operational and board-level experience.
Investment Strategy
S3 Ventures operates as a high-conviction, hands-on early-stage investor, frequently acting as the first institutional capital into a company. The firm leads rounds, takes board seats, and stays actively involved across hiring, strategy, governance, and follow-on fundraising. Its single-LP model enables flexibility around pacing, ownership, and exit timing, making S3 particularly attractive to founders building enduring companies rather than optimizing for short-term outcomes.
Notable Investments:
S3 Ventures has invested in more than 75 startups, including:
The firm’s portfolio spans enterprise software, vertical SaaS, healthcare technology, and data-driven platforms operating at national scale.
Notable Exits
The firm has realized more than 35 exits collectively valued at over $3 billion. Notable outcomes include Alkami Technology’s IPO, Levelset’s acquisition by Procore, and Favor’s acquisition by HEB, reflecting S3’s ability to support companies from early-stage formation through meaningful liquidity events.
Other
Founders should know that S3 Ventures is structured for long-term partnership. Its single-LP model removes pressure to force exits or rush growth, and the team is known for being deeply engaged operationally. S3 is particularly well-suited for founders building capital-efficient, revenue-driven businesses in software or healthcare who value steady support, thoughtful governance, and an investor willing to lead across multiple rounds.
United States
