Early-stage venture firm A* announced Tuesday $450 million Fund III. The firm takes a holistic approach, supporting companies in categories such as AI applications, fintech, healthcare and security.
The average check size for this fund will be between $3 million and $5 million, with the goal of supporting 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 non-profit organizations, foundations and endowments; Carnegie Mellon University is among the publicly disclosed backers.
A*, founded in 2020 and led by Kevin Hartz and Bennett Siegel, previously $315 million Fund II 2024 and $300 million Fund in 2021. I. Hartz is a serial entrepreneur known for co-founding international money transfer service PayPal, which was later acquired for $1.1 billion in 2015, and Eventbrite, an international money transfer service that went public in 2018.
Although the practice has since become more common, the firm has also been noted for backing unusual young founders. Hartz he told TechCrunch last fall about 20% of the firm’s current portfolio includes young entrepreneurs. Among his other investments, he backed fintech company Ramp and AI firm Mercor.
This story has been updated to clarify the name of the firm.
