Kevin Hartz's A* closed its third fund at $450 million, expanding the firm's capacity to back early-stage startups across multiple sectors. The generalist approach targets AI applications, fintech, healthcare, and security.
A* plans to deploy the capital across at least 30 companies with average check sizes between $3 million and $5 million per investment. This fund size positions the firm as a significant player in the seed and Series A landscape, where Hartz has built a track record since founding A* after his exits from Eventbrite and Xoom.
The third fund close reflects continued confidence in A*'s thesis and execution. Hartz backed companies including Anthropic early, demonstrating conviction in AI infrastructure before the category became crowded. The firm's generalist approach allows flexibility across sectors experiencing rapid innovation and capital inflows.
A*'s $450 million fund enters a competitive environment where established firms like Sequoia, Andreessen Horowitz, and Benchmark command large pools for early-stage deployment. Smaller seed-focused firms like Homebrew and Lerer Hippeau also compete for deal flow. A*'s positioning in the $3M-$5M check size range targets companies past pure seed but before major Series A rounds, a sweet spot where follow-on capital often becomes harder to secure.
The firm's multi-sector thesis differs from specialists like Khosla Ventures in climate or Lerer Hippeau in tech ecosystems. This generalist model requires strong pattern recognition and portfolio construction skills to avoid dilution across unrelated bets.
With $450 million committed, A* can now scale its team, expand its network across sectors, and increase its presence at competitive deal tables. The fund's size allows for meaningful follow-on investments in portfolio companies, a critical advantage for firms managing capital across