Early-stage venture firm A* announced a $450 million Fund III on Tuesday. The firm follows a generalist strategy, investing in areas like AI applications, fintech, healthcare, and security. The average investment from this fund will range from $3 million to $5 million, with a goal to support at least 30 startups. The funding will be distributed over the next two to three years, similar to its previous funds. Limited partners include nonprofits, foundations, and endowments; Carnegie Mellon University is one of the disclosed supporters.
Founded in 2020 by Kevin Hartz and Bennet Siegel, A* raised a $315 million Fund II in 2024 and a $300 million Fund I in 2021. Hartz is a serial entrepreneur known for co-founding Xoom, acquired by PayPal for $1.1 billion in 2015, and Eventbrite, which went public in 2018.
The firm is notable for investing in very young founders, a trend that has become more common. Last year, Hartz shared with TechCrunch that about 20% of the firm’s current portfolio includes teenage entrepreneurs. Its investments include the fintech company Ramp and the AI firm Mercor.