Vermilion Cliffs Ventures has closed a $25 million second fund to back technical founders building in AI infrastructure, security and developer tools. The early-stage firm was founded in 2023 by operator-turned-investor Ashley Smith, one of the few solo women general partners in venture capital.
Smith raised the new fund in about four months, with much of the capital coming from existing investors. In a LinkedIn post, she said 95% of Fund I investors returned for Fund II, which is anchored by LGT Capital Partners, Screendoor and GEM.
The firm plans to write checks of $500,000 to $1 million and invest in at least 25 companies over the next two and a half years. It has already backed six companies from the new fund.
Fund II Builds on a $13 Million Debut Fund
Vermilion Cliffs previously raised a $13 million debut fund that backed 35 companies. Its portfolio includes cybersecurity startup Keycard and AI infrastructure company CopilotKit.
The firm focuses on founders building products for technical users. Its target areas include AI infrastructure, cybersecurity, developer tools and other software that helps engineering teams build and operate products.
Smith told TechCrunch that many early-stage firms focus on helping startups raise the next round. Her goal is to help founders earn that round by improving go-to-market execution.
That approach draws on her experience in marketing and go-to-market roles at Twilio, Facebook, GitHub and GitLab. Smith said selling to developers and security teams is a specialised discipline, and many founders learn it through expensive mistakes.
Operator Experience Shapes the Firm’s Strategy
Vermilion Cliffs presents itself as an operator-led fund that offers hands-on support beyond capital. Its website says the firm backs early-stage, category-defining products and helps founders with practical scaling support.
The new fund also gives Smith more room to increase check sizes while keeping the firm focused. Fund II is expected to build a more concentrated portfolio than the first fund, with larger early checks into technical startups.
The fundraising comes as investor interest remains strong around AI infrastructure and security. As more companies adopt AI tools, startups building developer workflows, security systems and infrastructure layers are attracting more early-stage capital.
For Vermilion Cliffs, the second fund is a bet that technical founders still need more than money. Smith is positioning the firm around market access, developer-focused sales experience and early customer strategy, areas that can matter as much as product quality in infrastructure and security markets.
Featured image credits: Magnific.com
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