Venture firm A*, co-founded by Kevin Hartz and Bennett Siegel, announced it has closed its third fund with $450 million, aiming to invest in early-stage startups across AI, fintech, healthcare, and security sectors.
Investment Strategy
A* employs a generalist approach, planning to distribute checks averaging between $3 million and $5 million. The firm aims to invest in at least 30 companies over the next two to three years, similar to its previous fund strategies.
Limited partners in Fund III include nonprofits, foundations, and endowments, with Carnegie Mellon University being a publicly disclosed participant. A* has previously raised $315 million for its second fund in 2024 and $300 million for its inaugural fund in 2021.
Leadership and Background
Kevin Hartz, known for co-founding the international money-transfer service Xoom, which PayPal acquired for $1.1 billion in 2015, and Eventbrite, which went public in 2018, leads A*. Bennett Siegel, with a background at Boston Consulting Group and Altamont Capital Partners, joined Hartz in founding A* after spending four years as a partner at Coatue Management.
Focus on Young Entrepreneurs
Notably, A* has gained attention for supporting young entrepreneurs, with nearly 20% of its investments involving teenage founders. This trend has become more common in recent years, aligning with the firm’s innovative approach. A*'s notable investments include fintech company Ramp and AI firm Mercor.
Hartz told TechCrunch last fall that the firm’s strategy involves identifying and nurturing young talent early, a practice increasingly adopted in the venture capital landscape.
Source: https://techcrunch.com/2026/05/12/kevin-hartzs-a-just-closed-its-third-fund-with-450-million/
