Early-Stage Venture Firm A* Launches $450 Million Fund III
On Tuesday, A*, an early-stage venture firm co-founded by Kevin Hartz and Bennett Siegel, officially announced the closing of its $450 million Fund III. Established in 2020, A* has rapidly positioned itself as a generalist investor, supporting a diverse array of startups in categories such as artificial intelligence (AI), fintech, healthcare, and security.
Investment Strategy and Capital Deployment
The firm plans to deploy this new capital over the next two to three years, mirroring its previous investment strategies with Funds I and II. Average check sizes for investments from Fund III will range between $3 million and $5 million, with a goal of backing at least 30 promising startups. The investor base includes a mix of nonprofits, foundations, and endowments, with notable support from Carnegie Mellon University.
The Founders’ Background and Experience
Kevin Hartz, a serial entrepreneur, is well-known for co-founding companies like Xoom, which PayPal acquired for $1.1 billion in 2015, and Eventbrite, which went public in 2018. Hartz brings a wealth of experience that contributes to A*’s strategic vision. His co-founder, Bennett Siegel, has a robust background in consulting and finance, having worked with Boston Consulting Group, Altamont Capital Partners, and spent four years at Coatue Management as a partner.
Commitment to Young Founders
A* has gained attention for its commitment to supporting unusually young entrepreneurs. With a significant portion of their portfolio, nearly 20%, consisting of teenage founders, the firm is at the forefront of a growing trend in venture capital. Its diverse investments include notable companies, such as the fintech platform Ramp and the AI firm Mercor. This focus on young talent may reflect a shift in how venture firms are recognizing and nurturing the potential of emerging generations in tech and entrepreneurship.
This initiative by A* not only emphasizes financial backing but also highlights a broader commitment to innovation across various sectors. As the landscape of venture capital continues to evolve, A* remains dedicated to uncovering and fostering disruptive ideas that shape the future.
This story was updated to clarify the name of the firm.
For more detailed information, you can read the original article Here.
Image Credit: techcrunch.com
