Kevin Hartz’s A* just closed his third fund with $450 million

The startup company A* Capital on Tuesday announced $450 million Fund III. The company takes a strategic approach, serving companies in various sectors including AI services, fintech, healthcare, and security.
The average check for this fund will be between $3 million and $5 million, with the goal of returning at least 30 startups. The capital will be used over the next two to three years, just like the company’s previous investments. Limited partners include non-profits, foundations, and donations; Carnegie Mellon University is among those named on the list.

A* Capital, which was founded in 2020 and is managed by Kevin Hartz and Bennet Siegel, has already raised $315 million Fund II in 2024 and a $300 million Fund I in 2021. Hartz is a rare entrepreneur who is best known for starting Xoom, a global money transfer service PayPal later raised $1.1 billion in 2015, and Eventbrite, a ticketing platform that went public in 2018.

The company also paid attention to supporting young non-traditional startups, as the practice has been increasing ever since. Hartz told TechCrunch last fall that about 20% of the company’s portfolio involves young entrepreneurs. Among its investments, it has backed fintech company Ramp and AI company Mercor.