Kevin Hartz’s A* just closed its third fund with $450 million

A* Venture Firm has announced the successful closing of its third funding round, raising an impressive $450 million. This early-stage investment firm adopts a generalist strategy, focusing on a diverse array of sectors such as artificial intelligence, fintech, healthcare, and security. With plans to support at least 30 startups, the average investment from this fund will range between $3 million and $5 million. The capital is intended to be utilized over the next two to three years, mirroring the deployment timeline of the firm's previous funds. Limited partners contributing to this fund include various nonprofits, foundations, and endowments, with Carnegie Mellon University recognized as one of the publicly identified supporters. Founded in 2020 by Kevin Hartz and Bennet Siegel, A* has previously raised $315 million in its second fund in 2024 and $300 million in its inaugural fund in 2021. Hartz, a noted serial entrepreneur, co-founded Xoom, a money-transfer service acquired by PayPal for $1.1 billion in 2015, and the popular event ticketing platform Eventbrite, which went public in 2018. A* has gained attention for its willingness to invest in remarkably young founders, a trend that is becoming more prevalent in the venture capital landscape. Hartz shared with TechCrunch last fall that nearly 20% of the firm’s current portfolio consists of teenage entrepreneurs. Noteworthy investments from A* include the fintech company Ramp and the AI startup Mercor.