Venture Capital Firm A* Launches $450 Million Fund III
Venture capital firm A* announced a $450 million Fund III on Tuesday. The company takes a generalist approach and supports businesses in categories such as AI applications, fintech, and health and safety.
The average check size for this fund will be between $3 million and $5 million, with a goal of supporting at least 30 startups. The capital will be deployed over the next two to three years, similar to the company’s previous funds. Sponsors include nonprofit organizations, foundations and endowments; Carnegie Mellon University is among the publicly named funders.
Background and Vision of A*
A*, founded in 2020 and led by Kevin Hartz and Bennett Siegel, has rapidly established itself as a formidable player in the venture capital landscape. Hartz is a seasoned entrepreneur renowned for co-founding Xoom, an international money transfer service acquired by PayPal for $1.1 billion in 2015, and Eventbrite, a successful event ticketing platform that went public in 2018. Siegel brings a wealth of experience from his tenure at Boston Consulting Group and Altamont Capital Partners, as well as his role as an associate at Coatue Management.
Investment Strategy and Portfolio
The firm is noted for its innovative approach in supporting young entrepreneurs. Hartz revealed to TechCrunch that nearly 20% of A*’s current portfolio consists of ventures led by teenage entrepreneurs. This trend, while becoming more common, underscores A*’s commitment to nurturing nascent talent. Among its diverse portfolio are notable investments in fintech leader Ramp and AI innovator Mercor.
Previous Funds and Growth
Prior to Fund III, A* successfully raised a $315 million Fund II in 2024 and a $300 million Fund I in 2021. This growth trajectory highlights the firm’s robust strategic planning and strong investor confidence. The new fund aims to build on this momentum by continuing to invest in cutting-edge sectors.
Commitment to Innovation and Inclusion
A*’s third fund is a testament to its ongoing commitment to fostering innovation across a spectrum of industries. By targeting sectors like AI, fintech, and health and safety, the firm is well-positioned to capitalize on emerging trends and technological advancements. The partnership with esteemed institutions such as Carnegie Mellon University further emphasizes A*’s dedication to combining academic excellence with entrepreneurial vision.
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