A* is excited to share that we have successfully closed our third fund, with $450 million to put into the hands of innovative, game-changing early-stage startups. The young firm, founded in 2020, is led by experienced entrepreneurs Kevin Hartz and Bennett Siegel. They care deeply about fueling high growth potential early stage companies. Overall, this new infusion of capital will allow A* to grow its investment portfolio and offer major funding to new and young firms.
In its earlier rounds, A* raised $615 million over two funds. Together with Fund I, they raised $300 million in 2021 demonstrating strong fundraising traction. Then, in 2024, they went on to raise an extraordinary $315 million for Fund II. With the closing of Fund III, A* is poised to make follow-on investments of between $3 million and $5 million. They will focus on at least 30 different startups, demonstrating their dedication to supporting a wide array of entrepreneurial pursuits.
Kevin Hartz, as you may know, is a legendary serial entrepreneur. He’s the cofounder of Xoom, an international money-transfer service that PayPal bought for $1.1 billion in 2015. After his work at Six Apart, he played a key role in the founding of Eventbrite, an event-ticketing platform that went public in 2018. His deep experience in developing and scaling thriving enterprises makes him the ideal leader at A*.
Bennett Siegel, who rounds out Hartz’s entrepreneurial sensibilities with a deep finance background. He started his professional career at Boston Consulting Group then went on to become a partner of Altamont Capital Partners. Siegel served four years as partner at hedge fund Coatue Management which is where he really developed his investment chops. Their collective experience deepens A*’s capacity to recognize and support the development of promising startups.
The launch of Fund III aligns with A*’s mission to empower entrepreneurs and facilitate innovative solutions across various sectors. In its work, the firm is intentional about looking for the highest potential growth startups. The average check size for Fund III makes sense, as its strategy is to provide deep financial support.
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