Startups & Funding
A* closes $450 million Fund III for generalist investing
A* has closed its third venture fund with $450 million, aiming to deploy capital across at least 30 startups over the next two to three years.
Early-stage venture firm A* announced on Tuesday the closing of its third fund, Fund III, totaling $450 million. The firm continues to employ a generalist approach to investing, which means it backs companies across multiple business sectors rather than specializing in a single industry. According to the firm, its investments span categories such as artificial intelligence applications, fintech, healthcare, and security.
The closing of Fund III represents a steady increase in capital under management for the firm since its inception. The firm’s fundraising history includes:
- Fund I: $300 million raised in 2021
- Fund II: $315 million raised in 2024
- Fund III: $450 million raised in 2026
A* plans to deploy the newly raised capital over the next two to three years, maintaining a similar investment pace to its previous funds. The firm aims to back at least 30 startups with this vehicle. The average check size for investments from Fund III will range between $3 million and $5 million. The capital for the fund was secured from various limited partners—the institutional investors that provide capital to venture firms—including nonprofits, foundations, and endowments. Carnegie Mellon University is among the publicly named limited partners backing the fund.
The firm was founded in 2020 by Kevin Hartz and Bennett Siegel. Hartz is a serial entrepreneur who co-founded Xoom, an international money-transfer service that PayPal acquired for $1.1 billion in 2015, and Eventbrite, an event-ticketing platform that went public in 2018. Under their leadership, A* has focused heavily on early-stage talent; Hartz noted that nearly 20% of the firm’s current portfolio involves teenage entrepreneurs. The firm’s existing portfolio includes investments in the fintech company Ramp and the artificial intelligence firm Mercor.
Why it matters
The firm has drawn attention for its focus on backing unusually young founders, with nearly 20% of its current portfolio involving teenage entrepreneurs.