Early-stage venture firm A* has announced a $450 million Fund III, proving that even in a world of AI hype and fintech chaos, there's still room for a generalist approach. The firm, which backs companies across AI applications, fintech, healthcare, and security, plans to write checks of $3 million to $5 million each, aiming to fund at least 30 startups over the next two to three years. Limited partners include nonprofits, foundations, and endowments, with Carnegie Mellon University publicly named among the backers - presumably hoping some of that venture magic rubs off on its alumni.
Founded in 2020 by Kevin Hartz and Bennet Siegel, A* previously raised a $315 million Fund II in 2024 and a $300 million Fund I in 2021. Hartz is a serial entrepreneur known for co-founding Xoom (sold to PayPal for $1.1 billion in 2015) and Eventbrite (which went public in 2018), while Siegel honed his craft at Boston Consulting Group and Altamont Capital Partners before spending four years as a partner at Coatue Management. Together, they're like the Batman and Robin of early-stage investing, if Batman had a knack for ticketing and Robin knew his way around a leveraged buyout.
The firm has also gained notoriety for backing unusually young founders, a trend that's becoming as common as startup pivots. Hartz told TechCrunch last fall that nearly 20% of the firm's portfolio involves teenage entrepreneurs - because who needs a college degree when you have a killer idea and a tolerance for ramen? Among its notable investments are fintech darling Ramp and AI firm Mercor, proving that A* knows a good bet when it sees one, regardless of the founder's age.