On Tuesday, early-stage venture firm A* announced the successful closing of its third fund, raising an impressive $450 million. The firm adopts a generalist investment strategy, focusing on diverse sectors such as AI applications, fintech, healthcare, and security.
The average investment size for Fund III will range from $3 million to $5 million, with plans to support at least 30 startups over the next two to three years, mirroring the timeline of its previous funds. Notable limited partners include various nonprofits, foundations, and endowments, with Carnegie Mellon University publicly recognized as one of the contributors.
Founded in 2020 and led by Kevin Hartz and Bennet Siegel, A* has previously achieved remarkable fundraising milestones, including a $315 million Fund II in 2024 and a $300 million Fund I in 2021. Hartz, a renowned entrepreneur, is celebrated for co-founding Xoom, which was acquired by PayPal for $1.1 billion in 2015, as well as Eventbrite, which went public in 2018.
A* has garnered attention for its commitment to supporting exceptionally young founders, a trend that has gained traction in the venture capital landscape. Hartz noted that approximately 20% of the firm's portfolio consists of teenage entrepreneurs. Among the firm's investments are the fintech company Ramp and the AI startup Mercor.
This significant funding round not only highlights A*'s growth but also underscores a broader shift in the investment landscape, where innovative ideas can emerge from even the youngest visionaries. As the firm continues to champion early-stage companies, it sets the stage for a future where diverse talents and groundbreaking technologies are at the forefront of industry advancement.