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Kevin Hartz’s A* just closed its third fund with $450 million
Venture firm A* has secured $450 million for its third fund, focusing on investing in startups spanning AI, fintech, healthcare, and security. The fund aims to support at least 30 startups with check sizes between $3 million and $5 million, following previous funds of $315 million and $300 million. Founded in 2020 by Kevin Hartz and Bennet Siegel, A* is noted for backing young entrepreneurs.
Key points
- A* closed Fund III with $450 million, focusing on diverse sectors like AI and fintech.
- Average investment size will be $3-5 million, targeting at least 30 startups.
- Capital will be deployed over 2-3 years, consistent with previous funds.
- Founded in 2020 by Kevin Hartz and Bennet Siegel; previous funds were raised in 2021 ($300 million) and 2024 ($315 million).
- Hartz has a background in successful ventures like Xoom and Eventbrite.
- Notable for investing in unusually young founders, with around 20% of the portfolio consisting of teenage entrepreneurs.
Why it matters
- Investment in AI and fintech is rising as industries grow rapidly; aligns with 2025 IT trends focus on automation and financial technology.
- The trend of backing young entrepreneurs reflects a societal shift towards supporting innovation among younger generations.
- A*’s approach mirrors a growing venture capital interest in generating diverse portfolios through varied early-stage investments.
A*’s successful funding round reflects increasing venture capital confidence in diverse sectors and young talent, aligning with broader 2025 IT trends encouraging innovation and diversity in entrepreneurship.