Solo GP Ashley Smith closes $25M second fund targeting AI and security startups

Ashley Smith, operating as a solo general partner, has closed the second fund for Vermilion Cliffs Ventures at $25 million. The fund is earmarked for early-stage startups in artificial intelligence, security, and related technology sectors. This marks a continuation and expansion of Smith’s focused investment strategy.

At $25 million, the fund size is modest but competitive for a solo GP vehicle, aligning with industry medians for similar fund structures. It allows Smith to maintain a hands-on approach, targeting seed and pre-Series A rounds where deal flow remains robust despite wider market volatility.

The choice to focus on AI and security underscores the persistent investor appetite for these sectors, which continue to attract capital due to their strategic importance and growth potential. This contrasts with some pullbacks seen in other tech verticals, suggesting a selective but confident deployment of capital.

For founders, this fund represents an opportunity to engage with a specialized, experienced investor who can offer not only capital but sector-specific expertise. For the venture ecosystem, Smith’s fund signals that while mega-funds and large rounds capture headlines, smaller, focused funds remain vital in the innovation pipeline, especially in high-demand areas like AI and cybersecurity.