Vermilion Cliffs Ventures Closes $25M Fund II to Back AI and Security Startups

Solo GP Ashley Smith has closed a $25 million second fund under Vermilion Cliffs Ventures, targeting early-stage startups across AI, security, and adjacent sectors. The new vehicle continues Smith's thesis-driven approach to backing technical founders at the earliest stages.

Vermilion Cliffs Ventures, the solo GP firm led by Ashley Smith, has announced the close of its $25 million Fund II, continuing its focus on early-stage startups in AI, security, and related sectors.

A Solo Bet on Technical Founders

Smith operates as a solo general partner — a lean fund structure that has gained traction among operators-turned-investors who prefer deep conviction over portfolio breadth. Fund II follows the same playbook as its predecessor, concentrating on pre-seed and seed-stage companies where hands-on support from a single experienced investor can move the needle.

Investment Focus

The fund's thesis centers on a few high-conviction areas:

Artificial intelligence — particularly infrastructure and applied AI tooling
Cybersecurity — with an emphasis on startups addressing emerging threat vectors
Adjacent technical markets where Smith has established founder relationships

Backing the Next Wave

With $25 million in fresh capital, Vermilion Cliffs is positioned to write meaningful checks into a crowded but still-expanding early-stage market. The close signals continued LP appetite for focused, operator-led funds even as the broader venture climate remains selective.

Smith's track record and domain expertise in security and developer tooling give the fund a differentiated angle in sourcing deals that larger, generalist firms may overlook at the earliest stages.