S3 Ventures, a Texas based early stage venture capital firm, has raised its eighth fund at $250 million as it marks 20 years since the firm’s founding in 2005. With the new vehicle, S3 Ventures said it now manages more than $1 billion in assets and supports more than 40 active portfolio companies across the United States.
The firm said its capital base continues to come from a single limited partner described as a highly philanthropic family with a multibillion dollar foundation focused on empowering children and families. S3 Ventures positioned that single LP structure as enabling a longer time horizon and greater focus on supporting founders rather than fundraising cycles.
S3 Ventures said Fund VIII will continue its strategy of leading Seed, Series A, and Series B rounds, writing initial checks ranging from $500,000 to $15 million and retaining capacity to invest more than $25 million over the life of a company. The firm said it will remain focused on business software and healthcare technology, with roughly half of the fund expected to be invested in Texas and the remainder allocated to founders across the country.
Alongside the fund announcement, S3 Ventures promoted Eric Engineer and Aaron Perman to General Partner. The firm also noted earlier promotions and additions that bring the Austin based team to 12 people, including the promotion of Joe Curry to Principal.
S3 Ventures reported that, as of December 2025, it has invested in more than 75 startups that have raised over $3.5 billion, manages more than 40 active portfolio companies across Texas and 12 other states, and has completed more than 35 exits collectively valued at over $3 billion. The firm cited a sample of investments including Alkami Technology, Levelset, Favor, Alleviant, Atmosphere TV, Interplay Learning, Hydrolix, and QbDVision. It also highlighted 2025 as its most active year, citing 13 investments year to date.
KEY QUOTES:
“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. 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.”
Brian R. Smith, Founder And Managing Director, S3 Ventures
“We have 40+ active companies with nearly half in Texas and the rest spread across 12 states. 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.”
Charlie Plauche, General Partner, S3 Ventures
“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,”
Doug Donovan, Founder And CEO, Interplay Learning
