Scribble Ventures Secures $80M Fund III, Proving the Enduring Power of Deep Networks in a Challenging VC Market

The venture capital landscape is currently navigating turbulent waters. Following a boom period characterized by rapid fund formation and soaring valuations, the market has contracted significantly. Exits have become more challenging, and limited partners (LPs) are increasingly scrutinizing performance, particularly for newer funds that haven't yet demonstrated substantial distributed proceeds (DPI). In this challenging environment, raising capital is harder than ever, especially for emerging managers.

Yet, against this backdrop of tightening markets and increased caution, Elizabeth Weil's Scribble Ventures has not only survived but thrived. The firm recently announced the successful closing of its third fund, securing an impressive $80 million. This figure represents Scribble's largest capital raise to date and significantly exceeded its initial hard cap of $75 million, a testament to the market's confidence in Weil and her distinctive approach to venture investing.

Elizabeth Weil is no newcomer to the Silicon Valley ecosystem. A Stanford graduate, her career spans prominent roles at established venture firms like IVP and Menlo Ventures, a partner position at the influential Andreessen Horowitz (a16z), and corporate development experience at Twitter (now X). This extensive background has provided her with deep insights into the mechanics of venture capital and, crucially, has allowed her to cultivate a vast and influential network.

Weil reflected on the fundraising process, acknowledging the prevailing market sentiment. "Everybody told me it was going to be the hardest to raise," she shared in a conversation. Despite the challenging climate, the firm's unique value proposition resonated with investors, leading to the oversubscribed fundraise, which required extending the fundraising period by three weeks to accommodate demand.

The success of Scribble Ventures stands in stark contrast to the struggles faced by many funds that emerged during the 2020-2021 funding frenzy. Weil points out a critical difference: experience in navigating downturns and focusing on long-term value creation, not just deployment speed. "Being a harvester is part of venture capital, too," Weil observed, referring to the necessary work of managing existing portfolios and generating returns for LPs, a phase many newer managers haven't yet experienced.

The Power of the Scribble Network

What truly differentiates Scribble Ventures, according to Weil, is what she terms the "Scribble Network." This isn't just a list of contacts; it's a carefully curated and actively engaged ecosystem of experienced operators, technical experts, and industry executives. This network serves multiple critical functions:

• Deal Flow: Network members often have early visibility into promising startups within their respective domains, providing Scribble with unique access to potential investment opportunities.
• Due Diligence: Leveraging the deep expertise of operators allows Scribble to conduct more thorough and insightful due diligence on potential investments, assessing technology, market fit, and team capabilities from a practitioner's perspective.
• Portfolio Support: Once an investment is made, network members become valuable resources for founders, offering guidance on product development, go-to-market strategies, hiring, and navigating industry challenges.
• Co-investment: Many members of the Scribble Network also invest alongside the firm, further aligning interests and bringing additional capital and expertise to portfolio companies.

This collaborative model creates a powerful flywheel effect. Founders gain access to unparalleled expertise and connections, increasing their chances of success. Network members get early exposure to innovative companies and the opportunity to invest alongside a trusted partner. Scribble Ventures benefits from enhanced deal flow, sharper insights, and a stronger support system for its portfolio, ultimately leading to better outcomes for its LPs.

The caliber of individuals within the Scribble Network is impressive. It includes figures such as Maggie Hott, who leads go-to-market initiatives at OpenAI, a company at the forefront of the AI revolution; Jim Everingham, VP of Engineering at Meta, bringing deep technical and scaling expertise; and Sheila Vashee, CMO of Figma, offering invaluable insights into product-led growth and design-centric businesses. These are not passive advisors but active participants who understand the operational realities of building and scaling successful technology companies.

Adding another layer of strength to the network is Elizabeth Weil's husband, Kevin Weil. As the Chief Product Officer at OpenAI and a board member at Cisco, Kevin brings a wealth of experience in product strategy, AI development, and corporate governance. His technical acumen and leadership roles in highly influential companies perfectly complement Elizabeth's investment and corporate development background, creating a formidable partnership at the core of Scribble Ventures.

The value of this network is tangible for the founders Scribble backs. Weil explains the direct benefit: "We tell our founders, 'Who from our extended network would you like to meet?' When they look at that market list and the menu, and they say, 'I can just text this person?' That's incredible." This level of access and personalized support is a significant differentiator, particularly for early-stage companies trying to navigate complex markets and build critical relationships.

Successful Bets and Portfolio Highlights

The network-driven approach has already yielded significant successes for Scribble Ventures. The firm has made early investments in companies that have gone on to achieve remarkable milestones, validating the strength of its strategy and network.

One notable example is Whatnot, a live auction and shopping platform. Scribble was an early investor in Whatnot, which reached a valuation of nearly $5 billion in January 2025. This investment highlights Scribble's ability to identify and support companies tapping into emerging consumer trends and building vibrant online communities.

Another promising portfolio company is Atmo. Founded by former Googlers, Atmo is focused on developing ultra-precise, AI-driven weather forecasting technology. In an era increasingly impacted by climate change and extreme weather events, accurate forecasting is becoming critical for numerous industries, from logistics and agriculture to energy and insurance. Scribble's investment in Atmo demonstrates an eye for companies addressing significant global challenges with cutting-edge technology.

Poolside.ai, a Paris-based generative AI company, is another impressive early bet. Founded by GitHub's former CTO, Poolside.ai quickly garnered significant investor attention, being valued at $3 billion by investors in October 2024. This investment underscores Scribble's agility and foresight in identifying key players in the rapidly evolving artificial intelligence landscape.

Beyond these examples, Scribble Ventures' portfolio includes investments in industry giants like SpaceX and Figma, further illustrating the firm's ability to access and participate in highly competitive deals alongside larger, established funds. With the closing of Fund III, Scribble Ventures now manages $216 million in assets, a significant milestone for an emerging manager.

Investment Philosophy and Fund Performance

Scribble Ventures employs a flexible and collaborative investment strategy. The firm typically writes checks ranging from $750,000 to $1.5 million. Crucially, they avoid rigid ownership targets, a practice that can sometimes hinder collaboration with other investors or lead to missed opportunities. "I think the approach of saying 'we must be at 14% or we walk' isn't the way to start off a relationship," Weil noted, emphasizing the importance of building strong, collaborative partnerships with co-investors and founders.

This flexible approach allows Scribble to participate effectively in rounds led by other firms, bringing its network value to the table regardless of its precise ownership percentage. It fosters a more collegial environment, which is increasingly important in complex funding rounds involving multiple parties.

The performance of Scribble's earlier funds provides a strong foundation for the new capital raise. Weil reported that the firm's first fund, raised in 2020, is already showing robust performance with a 4x multiple on invested capital. This strong early return is partly attributed to early distributions to investors from successful crypto positions in companies like Mysten and Aptos, demonstrating Scribble's ability to navigate diverse technology sectors and generate liquidity for its LPs.

Navigating the AI Era

The current technological landscape is dominated by the transformative potential of artificial intelligence. Weil sees this as a period of immense opportunity, perhaps the clearest yet, for applying Scribble's network-centric and collaborative approach.

AI is not just a new sector; it's a fundamental shift impacting every industry. Investing in AI requires deep technical understanding, insight into rapidly changing research frontiers, and the ability to discern genuine innovation from hype. This is where a network of AI operators and experts, like those within the Scribble Network (including Kevin Weil at OpenAI), becomes invaluable for sourcing, evaluating, and supporting AI startups.

However, Weil also acknowledges the inherent challenges of the current moment, particularly within the AI space. "I think this is the best time to be a startup, but it's the hardest time because there's so much noise," she stated. The proliferation of AI tools and companies has created a crowded market where it's difficult for new ventures to stand out. Furthermore, the traditional playbooks for finding product-market fit and executing go-to-market strategies are constantly being rewritten in the age of AI.

Finding product-market fit is harder than ever because the technology is evolving so quickly, and user expectations are high. Go-to-market is complicated by the need to educate potential customers about complex AI capabilities and differentiate from a multitude of competitors. In this environment, the guidance and connections provided by experienced operators within the Scribble Network can be the critical difference between success and failure for a startup.

The network can help founders cut through the noise, refine their product strategy based on real-world operational feedback, and access key early customers or partners. This hands-on, network-enabled support is arguably more crucial now than ever before, given the speed and complexity of the AI market.

The Team Behind Scribble Ventures

While Elizabeth Weil is the driving force and public face of Scribble Ventures, the firm's success is also built on a strong team. The core team pictured includes Christen O'Brien, the operating partner, who likely plays a key role in supporting portfolio companies with operational challenges; John Smothers, a partner, contributing to investment strategy and deal execution; and Kevin Weil, serving as operator-in-residence, bringing his deep technical and product expertise to bear on investment decisions and portfolio support.

This combination of investment acumen, operational experience, and deep technical knowledge positions Scribble Ventures uniquely to identify and support the next generation of transformative technology companies, particularly in the AI space.

Conclusion: Networks as a Competitive Moat

In a venture capital market that is increasingly competitive and challenging, the success of Scribble Ventures in raising an oversubscribed $80 million Fund III serves as a powerful case study. It demonstrates that while market conditions and financial metrics are important, the enduring value of deep, engaged networks remains a critical competitive advantage.

Elizabeth Weil and the Scribble team have built more than just a venture fund; they have cultivated a vibrant ecosystem of operators and experts who are genuinely invested in the success of the portfolio companies. This network provides not only access to deals and capital but also invaluable operational support and strategic guidance that is essential for startups navigating today's complex technological and market landscapes.

As the venture market continues to evolve and the focus shifts towards demonstrating real value and generating returns, the network-driven model pioneered by Scribble Ventures offers a compelling blueprint for success. It underscores a fundamental truth in the world of startups and venture capital: relationships, expertise, and collaborative support are just as crucial as capital in building the companies of the future.

The successful closing of Fund III positions Scribble Ventures to continue making impactful early-stage investments, leveraging its unique network to identify promising opportunities and help founders turn their visions into reality, particularly in high-growth areas like artificial intelligence. In a crowded field, Scribble's network isn't just an asset; it's a moat.