A* Continues to Shine: Kevin Hartz’s Third Fund Raises $450M

A* Ventures Announces $450 Million Fund III

Early-stage venture firm A* made headlines on Tuesday with the unveiling of their latest venture fund, Fund III, totaling an impressive $450 million. Known for their generalist approach, A* Ventures focuses on supporting a diverse range of companies spanning various sectors including AI applications, fintech, healthcare, and security.

The average investment size from this fund is projected to fall between $3 million and $5 million, with a goal of backing at least 30 promising startups. Over the next two to three years, the capital will be strategically deployed, mirroring the timeline of the firm’s previous funding rounds. Noteworthy limited partners in this endeavor include nonprofits, foundations, and endowments, with Carnegie Mellon University standing out as one of the publicly acknowledged supporters.

Established in 2020 by Kevin Hartz and Bennett Siegel, A* Ventures has steadily built a reputation for itself in the investment landscape. The firm successfully raised $315 million for Fund II in 2024 and $300 million for Fund I in 2021. Hartz, a seasoned serial entrepreneur, is renowned for his role in co-founding Xoom and Eventbrite, two prominent tech companies that have left a lasting impact on the industry. Meanwhile, Siegel brings diverse experience from renowned firms like Boston Consulting Group and Altamont Capital Partners, as well as his tenure as a partner at Coatue Management.

A* Ventures has captured the industry’s attention for its unique support of exceptionally young founders, a trend that has gained traction in recent years. Approximately 20% of the firm’s current portfolio features teenage entrepreneurs, showcasing their commitment to nurturing fresh talent in the startup ecosystem. Notable investments by A* Ventures include backing the fintech platform Ramp and the AI company Mercor.

This article has been updated to reflect the accurate name of the firm.