S3 Ventures today announced a $250 million Fund VII — the latest and largest venture capital fund focused on the state of Texas. With $900 million in assets under management, the Austin-based VC is the largest firm that primarily invests in Texas-based startups.
“S3 was an investor during the full lifecycle of the company, from seed stage to IPO”
S3’s seventh fund is representative of a decade-long acceleration in startup funding across the state — concentrated in Austin, Dallas, Houston and San Antonio. The rapid growth of local capital sources in recent years has enabled hundreds of Texas startups to raise multiple rounds in their home state — rather than rely on coastal firms for financing.
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 addressing social inequities. With its single-LP structure, the firm is undistracted by fundraising and unencumbered by many of the constraints faced by traditional VC firms, thereby providing patient capital that better aligns with a founder’s long-term vision.
“In our first 17 years, we have been fortunate to partner with truly visionary founders who have transformed the way we work, live and heal,” said S3 Managing Director Brian R. Smith.
“We look forward to working with many more in the years ahead.”
S3 Managing Director Brian R. Smith
S3 Ventures makes initial investments from $500,000 to $10 million in seed, series A or series B rounds with the capacity to invest more than $20 million throughout the life of a company.