Early-Stage Venture Firm A* Announces $450 Million Fund III
Early-stage venture capital firm A* has unveiled its latest investment vehicle, Fund III, totaling $450 million. This new fund continues the firm’s generalist investment philosophy, supporting startups across diverse sectors including artificial intelligence (AI) applications, fintech, healthcare, and security. The fund aims to make average investments ranging from $3 million to $5 million, with a goal of backing at least 30 startups over the next two to three years, mirroring the deployment pace of its previous funds. Among the limited partners are nonprofits, foundations, and endowments, with Carnegie Mellon University publicly recognized as a key backer.
Founders and Fundraising History
Founded in 2020 by Kevin Hartz and Bennett Siegel, A* has quickly established itself as a notable player in the venture capital ecosystem. The firm raised a $300 million Fund I in 2021 and followed with an oversubscribed $315 million Fund II in 2024. Kevin Hartz brings profound entrepreneurial experience, having co-founded Xoom, a pioneering international money-transfer service acquired by PayPal for $1.1 billion in 2015, and Eventbrite, a leading event-ticketing platform that went public in 2018. Bennett Siegel contributes a strong background from Boston Consulting Group and Altamont Capital Partners, in addition to four years as a partner at Coatue Management.
Focus on Young Founders and Notable Investments
A* has garnered attention for its commitment to backing exceptionally young founders, a strategy that has become more visible within the venture capital landscape. According to Hartz’s comments to TechCrunch in the fall of 2025, nearly 20% of the firm’s current portfolio companies are led by teenage entrepreneurs, reflecting A*’s willingness to support ambitious founders at an early age. Among the firm’s prominent investments are Ramp, a fintech startup focused on corporate card solutions, and Mercor, an AI-driven technology company.
This story was updated to clarify the name of the firm.
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