Ashley Smith's solo GP shop Vermilion Cliffs Ventures closed its second fund at $25 million, doubling down on early-stage bets in AI, security, and adjacent verticals. The firm, which Smith launched as an independent operation, targets pre-seed and seed companies across these hot sectors.
Smith's move reflects the broader trend of experienced investors striking out solo rather than climbing partnership ladders at traditional VC firms. With Fund II, Vermilion Cliffs positions itself to write larger checks than its debut vehicle while maintaining the agility and founder access that solo GP models promise.
The fund's focus on AI and security aligns with where capital is flowing hardest right now. AI startups continue attracting outsized check sizes, while security remains a perpetual venture category as companies prioritize compliance and breach prevention. Smith's ability to close Fund II suggests LPs have confidence in her thesis and track record from the inaugural fund.
Vermilion Cliffs operates in a crowded solo GP landscape. Solo GPs have proliferated as marquee investors like Keith Rabois, Charlie Cheever, and others have built independent firms with $25 million to $100 million funds. The model works best for operators with strong founder relationships and a defined thesis, which Smith appears to possess.
Fund II's close comes amid a moderating VC market after the 2021-2022 peak. Mid-market funds face pressure to deploy capital efficiently. Early-stage specialists like Smith benefit from lower deployment costs and the ability to back companies before Series A rounds where valuations have compressed significantly.
The fund likely includes both returning and new LPs, a common pattern for solo GPs proving repeat viability. Smith's ability to attract follow-on capital signals confidence from her initial investor base and new institutional players willing to back her approach.
Vermilion Cliffs' focus