A* just announced its third fund. It's a $450 million pot for early-stage startups. Kevin Hartz, known for Xoom and Eventbrite, runs the firm with Bennett Siegel.
They're generalists. They plan to invest in AI applications, fintech, healthcare, and security companies. Think checks between $3 million and $5 million. A* wants to back at least 30 startups with this fund. They'll deploy the capital over the next two to three years. That's the same pace as their previous funds.
Who's backing them? Nonprofits, foundations, and endowments are involved. Carnegie Mellon University is a publicly named backer. That's a solid vote of confidence.
A* is relatively new. Hartz and Siegel founded it in 2020. They raised a $300 million Fund I in 2021. Fund II, at $315 million, closed in 2024. This new fund shows they're gaining momentum.
Hartz has a strong track record. He co-founded Xoom, which PayPal bought for $1.1 billion in 2015. He also co-founded Eventbrite, which went public in 2018. Siegel's background includes Boston Consulting Group and Altamont Capital Partners. He also spent four years as a partner at Coatue Management. They bring diverse experience to the table.
The team's strategy seems consistent. "We will continue to focus on backing ambitious founders at the earliest stages," Hartz said in a statement. That means pre-seed, seed, and Series A rounds. They're looking for companies with big potential.
This new fund gives A* more firepower. They're ready to invest in the next generation of tech companies. Keep an eye on the startups they back. It could be a sign of future trends.
