A* Capital, an early-stage venture firm, has announced the closing of its third fund, totaling $450 million. This fund will focus on a wide range of sectors, including AI applications, fintech, healthcare, and security.
The firm plans to invest between $3 million and $5 million in at least 30 startups over the next two to three years, following a similar strategy as its previous funds. Notable limited partners include various nonprofits, foundations, and endowments, with Carnegie Mellon University publicly named as a backer.
Founded in 2020 by Kevin Hartz and Bennet Siegel, A* Capital previously raised $315 million for its second fund in 2024 and $300 million for its inaugural fund in 2021. Hartz is recognized for his entrepreneurial ventures, including co-founding Xoom, which was acquired by PayPal for $1.1 billion in 2015, and Eventbrite, which went public in 2018.
The firm has gained attention for its support of young entrepreneurs, with nearly 20% of its current portfolio consisting of teenage founders. Some of its notable investments include the fintech company Ramp and the AI firm Mercor.
