Kevin Hartz's A* Capital Secures $450M for Fund III

TL;DR

• A* Capital, led by Eventbrite co-founder Kevin Hartz, has closed its third early-stage fund at $450 million, its largest to date.
• The fund targets 30+ startups in AI, fintech, healthcare, and security with $3-5M checks over 2-3 years.
• This raise signals LP confidence in A*'s operator-led, generalist strategy amid a VC landscape favoring massive AI funds.

Fund III Closure Marks Milestone for A*

Kevin Hartz's A* Capital has announced the closing of its third fund, A* III, raising $450 million for early-stage investments. This oversubscribed fund surpasses the firm's previous raises—a $300 million Fund I in 2021 and a $315 million Fund II in 2024—bringing A*'s total assets under management to over $1 billion. The news, shared via Hartz's LinkedIn and covered widely in tech media, underscores the firm's growing prominence in a competitive venture landscape.

A Generalist Bet on High-Potential Sectors

A* takes a broad, generalist approach, backing innovators across key categories like AI applications, fintech, healthcare, and security. Fund III plans to deploy capital into at least 30 startups over the next two to three years, with average check sizes of $3 million to $5 million. This disciplined strategy contrasts with the multibillion-dollar mega-funds targeting cash-intensive AI ventures, positioning A* as a nimble player focused on meaningful partnerships rather than sheer scale.

Limited partners include nonprofits, foundations, and endowments, with Carnegie Mellon University among the named backers. The firm's operator-heavy team—Hartz (Eventbrite co-founder and chairman), Bennett Siegel (ex-Coatue), and Gautam Gupta (former Uber CFO and Opendoor exec)—brings hands-on expertise to seed and Series A deals.

Kevin Hartz: Driving A*'s Operator-Led Vision

At the helm is Kevin Hartz, a serial entrepreneur and investor whose track record includes co-founding Eventbrite (NYSE: EB). Hartz's post announcing the fund highlighted A*'s evolution: "Today, we're announcing A* III, a $450 million early-stage fund." His philosophy emphasizes "leading the shift from transactional capital to meaningful partnerships," with typical investments ranging from $100K (even for exceptional teen founders) to $10M, sweet-spotting at $3M.

Under Hartz's leadership, A* has backed notable companies like Vybe (seed for teen founders), Vigil Labs (AI trading, $5.7M seed), and Decagon (conversational AI at $1.5B valuation). Fund II notably allocated over 20% to teenage founders, reflecting Hartz's appetite for bold, early bets.

Implications for the VC Landscape

In a market dominated by giants like Andreessen Horowitz's $15 billion funds chasing AI unicorns, A*'s "less-is-more" approach stands out. As Hartz has observed, while others pour billions into every AI stage, A* prioritizes quality over quantity—focusing on operators who can scale efficiently. This $450 million raise, amid economic uncertainty, signals strong LP trust and could inspire more mid-sized funds to thrive by doubling down on generalist, founder-friendly investing.

As deployment ramps up, A* III is poised to shape the next wave of breakthroughs, proving that targeted capital and deep operator insights remain a winning formula in venture capital.

Looking Ahead: Deployment and Opportunities

With capital committed through 2028-2029, A* invites exceptional founders—especially in AI, fintech, healthcare, and security—to connect. Hartz's firm, based in San Francisco, continues to scout globally, from Stanford dropouts to teen innovators. For startups seeking not just checks but strategic allies, A* III represents a prime opportunity in an increasingly selective market.

AndroGuider Team

Articles written by the AndroGuider team. We try to make them thorough and informational while being easy to read.