A* Ventures Puts $450M Behind the Next Wave of Startups
Early-stage venture firm A*, co-founded by Kevin Hartz, has just closed its third fund with a whopping $450 million. Here’s what you need to know about this significant investment.
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Early-stage venture firm A* announced a $450 million Fund III on Tuesday, marking a substantial step in the company's growth trajectory. Co-founded by Kevin Hartz and Bennett Siegel, A* has established itself as a key player in backing innovative startups across diverse categories like AI applications, fintech, healthcare, and security.
The firm’s investment strategy involves an average check size ranging from $3 million to $5 million, with the aim of supporting at least 30 startups. The capital will be deployed over the next two to three years, as was seen in their previous funds. Limited partners include nonprofits, foundations, and endowments, with Carnegie Mellon University among those publicly named.
A* has garnered attention for its unique approach of investing in unusually young founders, a trend that is becoming more common but remains somewhat unconventional. Hartz shared with TechCrunch last fall that nearly 20% of the firm’s current portfolio involves teenage entrepreneurs. Notable investments include fintech company Ramp and AI firm Mercor.
The fund's closure comes on the heels of A*'s previous significant milestones, including a $315 million Fund II in 2024 and a $300 million Fund I in 2021. Hartz, known for his success as a serial entrepreneur through ventures like Xoom (acquired by PayPal for $1.1 billion) and Eventbrite (publicly listed in 2018), brings a wealth of experience to the table.
Bennett Siegel’s background is equally impressive, having come up through Boston Consulting Group, Altamont Capital Partners, and four years as a partner at Coatue Management. His diverse experience further strengthens A*'s position in the venture capital landscape.
