Early-stage venture firm A* announced Tuesday its $450 million Fund III. The company takes a generalist approach, helping companies across categories such as AI applications, fintech, healthcare, and security.
The fund's average check size is between $3 million and $5 million, with the goal of supporting at least 30 startups. The capital, like the firm's previous funds, will be deployed over the next two to three years. Limited partners include nonprofit organizations, foundations, and endowments. Carnegie Mellon University is also listed as a supporter.
Founded in 2020 and managed by Kevin Hertz and Bennett Siegel, A* raised a $315 million Fund II in 2024 and a $300 million Fund I in 2021. Hertz is a serial entrepreneur best known as the co-founder of Xoom, an international money transfer service that was later acquired by PayPal for $1.1 billion in 2015, and Eventbrite, an event ticketing platform that went public in 2015. 2018.
The company has also attracted attention for backing unusually young founders, although the practice has since become more common. Hertz told TechCrunch last fall that nearly 20% of the company's current portfolio involves teenage entrepreneurs. Investment targets include fintech company Lamp and AI company Melkor.
This article has been updated to clarify company name.