"A* Capital on Tuesday announced a $450 million Fund III. The firm takes a generalist approach, backing companies across categories including AI applications, fintech, healthcare, and security. The average check size for this fund will be between $3 million and $5 million, with the aim to back at least 30 startups. The capital will be deployed over the next two to three years, as with the firm's previous funds."
"Limited partners include nonprofits, foundations, and endowments; Carnegie Mellon University is among the publicly named backers. A* Capital, founded in 2020 and run by Kevin Hartz and Bennet Siegel, previously raised a $315 million Fund II in 2024 and a $300 million Fund I in 2021."
"Hartz is a serial entrepreneur best known for co-founding Xoom, the international money-transfer service PayPal later acquired for $1.1 billion in 2015, and Eventbrite, the event-ticketing platform that went public in 2018. The firm has also drawn attention for backing unusually young founders, even as the practice has become more common since."
"Hartz told TechCrunch last fall that close to 20% of the firm's current portfolio involve teenage entrepreneurs. Among others of its investments, it has backed the fintech company Ramp and the AI firm Mercor."
A* Capital announced a $450 million Fund III for early-stage investments. The firm uses a generalist strategy, backing companies across AI applications, fintech, healthcare, and security. The average investment size is expected to be between $3 million and $5 million, targeting at least 30 startups. Capital deployment is planned over the next two to three years, consistent with prior funds. Limited partners include nonprofits, foundations, and endowments, with Carnegie Mellon University named among backers. The firm was founded in 2020 and is run by Kevin Hartz and Bennet Siegel. It previously raised $315 million for Fund II in 2024 and $300 million for Fund I in 2021. The portfolio includes Ramp and Mercor, and the firm has backed very young founders, with about 20% of its current portfolio involving teenage entrepreneurs.
Read at TechCrunch
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