S3 Ventures Closes Fund VI, at $250M

S3 Ventures, Austin, TX-based firm, venture capital firm closed Fund VII at $250m.

S3 Ventures is backed solely by a multibillion-dollar foundation.

The firm has more than $900m in assets under management. It invests mainly in Texas-based startups in three areas: business technology and digital experiences. S3 can make initial investments of $500k up to $10m in Series A, Series B or Seed rounds. They also have the potential to invest more than $20m throughout a company’s lifetime.

S3 was founded in 2005 and has invested more than 50 times, including more than 25 portfolio companies and more exits.

Recent exits include:

  • 2021 — Initial public offering by Alkami Technology (Nasdaq: ALKT), a Plano-headquartered digital-banking fintech company;
  • 2021 — $500-million acquisition of Level set, an Austin and New Orleans-based construction-payment company, by California-based construction management software business Procore Technologies (NYSE: PCOR);
  • 2020 — $160-million+ acquisition of Acessa Health, an Austin-headquartered developer of minimally invasive treatment for fibroids, by Massachusetts-based women’s health medical-technology company Hologic (Nasdaq: HOLX);
  • 2020 — acquisition of Live Oak Technology, an Austin-headquartered remote financial transaction platform, by San Francisco-headquartered DocuSign (NASDAQ: DOCU)
  • 2018 — acquisition of Favor Delivery, an Austin-headquartered on-demand delivery service company, by San Antonio-based grocer H-E-B;
  • 2018 — acquisition of TVA Medical, an Austin-headquartered developer of minimally invasive procedures for chronic-kidney disease patients, by New Jersey-based Becton, Dickinson and Co. (NYSE: BDX)

These portfolio companies have raised more than $2 billion in total financing.

The firm is led by Brian R. Smith, who founded the firm with a $20 million first fund 17 years ago, and General Partner Charlie Plauche, who has led over a dozen of the firm’s investments and multiple exits.

The firm’s newest partner, Eric Engineer, joined in 2018, after serving as CEO of Invodo, an S3 Ventures portfolio company acquired that year. Aaron Perman is a principal at S3 Ventures and has worked with the majority of S3’s portfolio companies.

 

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