A* Capital Announces $450 Million Fund III
Early-stage venture firm A* Capital made headlines on Tuesday with the announcement of their latest Fund III, totaling $450 million. Taking a broad approach, the firm invests in a variety of sectors including AI applications, fintech, healthcare, and security.
The fund’s average investment size will range between $3 million and $5 million, with plans to support at least 30 startups. Over the next two to three years, the capital will be strategically deployed, following the same timeline as the firm’s previous funds. Notable limited partners include nonprofits, foundations, and endowments, with Carnegie Mellon University listed among the public backers.
About A* Capital
Founded in 2020 by Kevin Hartz and Bennet Siegel, A* Capital has a track record of success. The firm raised $315 million for Fund II in 2024 and $300 million for Fund I in 2021. Hartz, a serial entrepreneur, is recognized for his roles in co-founding Xoom and Eventbrite, two prominent tech companies.
Focusing on Young Entrepreneurs
A* Capital has gained attention for its support of young founders, a trend that has become more prevalent in recent years. Approximately 20% of the firm’s current portfolio consists of teenage entrepreneurs, showcasing a commitment to nurturing talent early on. Notable investments include fintech company Ramp and AI firm Mercor.
Overall, A* Capital’s Fund III represents a significant milestone in the venture capital landscape, signaling continued support for innovation and emerging technologies. With a diverse portfolio and a focus on young talent, the firm is poised for further success in the years to come.