Kevin Hartz’s early-stage venture firm A* has closed its third fund, raising $450 million to invest broadly across emerging technology sectors over the next two to three years.
- Raised $450 million for Fund III
- Targets investments in AI, fintech, healthcare, and security
- Plans to back at least 30 startups with $3M-$5M checks
What happened
A*, the early-stage venture firm led by serial entrepreneur Kevin Hartz and investor Bennett Siegel, has announced the closing of its third fund with $450 million in capital commitments. The fund will be deployed over the next two to three years, consistent with the firm’s previous funds raised in 2021 and 2024.
This round of funding aims to support at least 30 startups with average investment check sizes ranging from $3 million to $5 million. The firm, known for its broad sector focus, targets companies involved in artificial intelligence, financial technology, healthcare, and security.
Why it matters
A*'s fundraising milestone reflects continued confidence in a generalist venture strategy that balances risk across multiple high-growth sectors. The inclusion of prominent limited partners such as Carnegie Mellon University highlights institutional interest in backing early-stage innovation through the firm.
Additionally, A* stands out by its commitment to supporting unusually young founders, with nearly 20% of current portfolio companies founded by teenagers. This positions the firm uniquely in advancing next-generation entrepreneurship alongside its technology focus.
What to watch next
Market observers will be tracking how A* deploys its capital across emerging technology sectors and whether its investments can generate strong returns amid shifting economic conditions. The firm’s average check size indicates a focus on meaningful early-stage stakes rather than micro-seed rounds.
Furthermore, A*'s emphasis on backing youthful entrepreneurs could set new precedents in startup funding dynamics, potentially influencing other investors’ approaches to founder demographics. Upcoming portfolio developments and follow-on funding rounds will shed light on the fund’s impact.