Austin, Texas, December 17, 2025
S3 Ventures has officially launched its eighth fund, Fund VIII, valued at $250 million, as it celebrates its 20th anniversary. The firm aims to support local entrepreneurs in key sectors including business software and healthcare technology, demonstrating its commitment to fostering growth in the Texas economy. The fund allocates substantial financial backing for seed to Series B funding rounds and maintains a focus on nurturing innovative startups across the U.S.
Austin’s S3 Ventures Launches $250 Million Fund VIII
Milestone Marks 20 Years of Innovating Texas Economy
Austin, Texas – S3 Ventures, a leading venture capital firm in the Austin area, has officially launched its eighth fund, Fund VIII, with a robust valuation of $250 million. This significant announcement comes as the firm celebrates its 20th anniversary and has successfully accumulated over $1 billion in assets under management across more than 40 active portfolio companies nationwide. S3 Ventures is poised to further strengthen its investment strategy in supporting dynamic entrepreneurs and innovative companies.
The firm’s approach emphasizes the importance of fostering local talent and promoting entrepreneurial innovation. By maintaining a strategic focus on business software and healthcare technology sectors, S3 Ventures fosters growth in industries vital to both Austin’s economy and the state of Texas. As half of the new fund is allocated for investments within Texas, it highlights the firm’s commitment to local entrepreneurs while also extending support to founders across the United States.
Focused Investment Strategy with Diverse Opportunities
With the launch of Fund VIII, S3 Ventures aims to lead investments in Seed, Series A, and Series B funding rounds. Initial investments will range from $500,000 to $15 million, reflecting their intent to provide substantial financial backing during critical growth stages of emerging startups. This capacity for further investment exceeding $25 million throughout a company’s lifecycle positions S3 Ventures favorably in nurturing long-term business success.
The firm specifically targets the booming sectors of business software and healthcare technology, areas identified for their potential to yield significant returns while enhancing societal well-being. By prioritizing these fields, S3 Ventures continues to play a critical role in shaping the technological landscape in Austin and beyond.
Strengthening the Team for Continued Success
In alignment with the launch of Fund VIII, S3 Ventures has also announced key promotions within its team. Eric Engineer and Aaron Perman have been elevated to General Partners, while Joe Curry has achieved the position of Principal. These promotions reflect the firm’s growth trajectory and its ongoing investment in developing talent capable of driving entrepreneurial innovation. The Austin-based team now consists of 12 members, each contributing to the firm’s mission of empowering startup founders.
A Track Record of Achievement and Growth
Founded in 2005, S3 Ventures boasts a solid track record, having invested in over 75 startups that have collectively raised more than $3.5 billion. With more than 40 active portfolio companies spanning Texas and 12 additional states, the firm has a diverse array of successful investments, including notable names like Alkami Technology, Levelset, and Favor. The successful realization of over 35 exits, totaling more than $3 billion in value, attests to the firm’s effective investment strategies and its commitment to fostering entrepreneurial success.
Unique Structure for Long-Term Vision Alignment
A defining feature of S3 Ventures is its unique investment structure, operating with a single limited partner—a philanthropic family with a multibillion-dollar foundation focused on empowering children and families. This streamlined approach allows S3 Ventures to offer patient capital and specialized support, freeing founders from the pressures of fundraising and timing constraints. By aligning with the long-term vision of entrepreneurs, S3 Ventures positions itself as a supportive partner in the success of its portfolio companies.
As S3 Ventures celebrates two decades of impactful contributions to the venture capital industry, the launch of Fund VIII serves as a testament to its commitment to driving innovation and fostering growth in the critical sectors of business software and healthcare technology.
Frequently Asked Questions (FAQ)
What is the size of S3 Ventures’ eighth fund?
S3 Ventures’ eighth fund, Fund VIII, is valued at $250 million.
What sectors does S3 Ventures focus on for investments?
S3 Ventures focuses on business software and healthcare technology sectors.
How does S3 Ventures’ investment structure differ from other firms?
S3 Ventures operates with a single limited partner—a philanthropic family foundation—allowing for patient capital and focused support aligned with founders’ long-term visions.
How many active portfolio companies does S3 Ventures manage?
S3 Ventures manages over 40 active portfolio companies across Texas and 12 other states.
What is the total amount of assets under management by S3 Ventures?
S3 Ventures manages over $1 billion in assets.
Key Features of S3 Ventures’ Eighth Fund (Fund VIII)
| Feature | Details |
|---|---|
| Fund Size | $250 million |
| Assets Under Management | Over $1 billion |
| Active Portfolio Companies | 40+ across Texas and 12 other states |
| Investment Focus | Business software and healthcare technology |
| Initial Investment Range | $500,000 to $15 million |
| Investment Capacity | Over $25 million throughout a company’s lifecycle |
| Geographic Focus | Approximately half in Texas; remainder nationwide |
| Investment Rounds | Seed, Series A, and Series B |
| Unique Structure | Single limited partner—a philanthropic family foundation |
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