Early-stage venture firm A* has announced the closure of its third fund with a substantial $450 million. The firm’s generalist approach spans diverse sectors such as artificial intelligence applications, fintech, healthcare and security.
The average check size will range between $3 million to $5 million, allowing A* to back at least 30 startups over the next two to three years. Notable limited partners include nonprofits, foundations and endowments; Carnegie Mellon University is a publicly named backer.
Fund managers Kevin Hartz and Bennet Siegel have a strong track record, with Hartz co-founding Xoom acquired by PayPal in 2015 for $1.1 billion and Eventbrite going public in 2018. Siegel has experience from Boston Consulting Group to Coatue Management.
A* has also garnered attention for its investment in unusually young founders, with nearly 20% of the firm’s current portfolio involving teenage entrepreneurs. Among other investments are fintech company Ramp and AI firm Mercor.
