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A* Capital, founded by Kevin Hartz, has closed its third fund with $450 million. The fund aims to back at least 30 startups across AI, fintech, healthcare, and security over the next two to three years.
A* Capital, the early-stage venture firm led by Kevin Hartz, has closed its third fund with $450 million in commitments, marking a significant milestone for the firm as it expands its investment activities across multiple sectors.
The new fund, Fund III, was announced on Tuesday and is intended to deploy capital over the next two to three years. It will focus on backing at least 30 startups, with typical investment sizes between $3 million and $5 million.
Limited partners include nonprofits, foundations, and endowments, with Carnegie Mellon University publicly named as one of the backers. This follows previous funds of $315 million in 2024 and $300 million in 2021, demonstrating steady growth for the firm since its founding in 2020.
Why It Matters
The closing of this $450 million fund underscores the continued confidence in early-stage venture investing, particularly in sectors like AI, fintech, healthcare, and security. It also highlights Kevin Hartz’s ongoing influence in the venture capital space and his focus on backing young entrepreneurs, including a notable proportion of teenage founders.
This development is relevant for startups seeking early-stage funding and for the broader tech ecosystem, as it signals strong institutional interest and resources available for innovative companies during a period of rapid technological change.
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Background
Kevin Hartz, known for co-founding Xoom and Eventbrite, has built a reputation for investing in disruptive startups and supporting young entrepreneurs. His firm, A* Capital, has attracted backing from prominent institutions, including Carnegie Mellon University. The firm’s approach has included investing in a diverse range of categories, reflecting a generalist strategy that aims to identify promising early-stage companies across sectors.
The firm’s previous funds have been successfully deployed, with a focus on startups that demonstrate innovative potential and scalable business models. The announcement of Fund III is a continuation of this strategy, aimed at maintaining momentum and expanding its portfolio.
“We’re excited to close Fund III at $450 million, which will allow us to support a diverse set of innovative startups over the coming years.”
— Kevin Hartz
“Our focus remains on backing talented founders, especially those with bold ideas across AI, fintech, healthcare, and security.”
— Bennet Siegel
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What Remains Unclear
It is not yet clear which specific startups will be among the initial investments from Fund III, nor the exact timeline for deployment beyond the stated two to three years. Details on the fund’s specific allocation or new strategic shifts remain to be announced.
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What’s Next
The firm is expected to begin deploying capital shortly, with announcements of initial investments likely in the coming months. Monitoring the fund’s portfolio developments will provide insights into emerging trends and key sectors of interest for A* Capital.
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Key Questions
What is the focus of A* Capital’s new fund?
The fund aims to invest in early-stage startups across sectors including AI, fintech, healthcare, and security, with typical investments between $3 million and $5 million.
Who are the main backers of the new fund?
Limited partners include nonprofits, foundations, endowments, and Carnegie Mellon University, among others.
How does this fund compare to previous ones?
Fund III at $450 million is larger than the previous funds of $315 million (2024) and $300 million (2021), indicating growth and increased confidence in the firm’s strategy.
When will the investments from Fund III begin?
The firm plans to deploy capital over the next two to three years, with initial investments likely announced soon.
Why is Kevin Hartz’s involvement significant?
Hartz’s track record as a serial entrepreneur and early-stage investor adds credibility and attracts attention to A* Capital’s activities and fundraisings.
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