A* Raises $450 Million Fund III to Back AI, Fintech, Healthcare and Security Startups
A* closes $450M Fund III to invest $3M–$5M checks across AI, fintech, healthcare and security, targeting at least 30 startups and institutional limited partners.
Early-stage venture firm A announced the close of a $450 million Fund III, a follow-on to its prior two vehicles and a sign of continued investor appetite for early-stage, sector-agnostic investing. A Fund III will target roughly $3 million to $5 million average checks and aims to support at least 30 startups, with capital planned for deployment over the next two to three years. The new fund reinforces the firm’s generalist approach, placing particular emphasis on AI applications, fintech, healthcare and security companies.
Fundraising Milestone
A*’s latest fund triples as a continuation of rapid scaling that began with a $300 million debut fund in 2021 and a $315 million Fund II raised in 2024. The $450 million Fund III marks the firm’s largest pool to date and signals confidence from the limited partners who committed capital. Institutional backers named by the firm include nonprofits, foundations and endowments, with Carnegie Mellon University publicly listed among the investors.
Targeted Check Size and Deployment Timeline
The firm plans to write initial checks generally in the $3 million to $5 million range, a size aimed at leading early-stage rounds while leaving room for follow-on participation. Management says the capital will be allocated over a two- to three-year investment horizon, mirroring the cadence used for prior funds. That pacing is intended to give A* flexibility to support portfolio companies through multiple financing stages.
Investment Focus Across Sectors
A* maintains a generalist mandate but has highlighted several priority sectors for Fund III, including AI, fintech, healthcare and security. The mix reflects both longstanding demand in software-driven finance and newer opportunities created by advances in applied artificial intelligence. Security and healthcare investments aim to capitalize on persistent enterprise needs and regulatory-driven spending in those markets.
Profile of Limited Partners
The fund’s limited partner base includes a mix of nonprofit institutions, private foundations and university endowments, according to the firm’s announcement. Carnegie Mellon University is among the publicly named LPs, underscoring ties between the firm and academic research institutions. The composition of backers suggests A* continues to attract long-horizon, mission-aligned capital rather than relying solely on short-cycle investors.
Founders and Firm Track Record
A* was founded in 2020 by Kevin Hartz and Bennet Siegel, who together bring entrepreneurial and operating experience to the fund’s strategy. Hartz co-founded Xoom, which was later acquired by PayPal, and Eventbrite, which went public in 2018, while Siegel’s background includes stints at Boston Consulting Group, Altamont Capital and a partnership at Coatue Management. The firm’s earlier funds have underpinned investments in fintech and AI companies that helped establish its public track record.
Youth-Focused Investing and Notable Portfolio Names
A* has attracted attention for deliberately backing very young founders, a practice the firm says has become a material part of its strategy; management reports a notable portion of its portfolio involves teenage entrepreneurs. The firm’s portfolio includes fintech and AI names that illustrate its cross-sector approach, and Fund III is expected to continue that trend of identifying early-stage teams regardless of founder age. That stance reflects a willingness to fund nascent companies with strong technical or product-driven potential.
A’s Fund III launch arrives amid a broader fundraising environment where early-stage firms are recalibrating check sizes and sector concentrations to reflect evolving market dynamics. By setting average investments between $3 million and $5 million and securing a diverse set of institutional LPs, A positions the new fund to play a leading role in follow-on rounds and to provide sustained operating support to its companies.
Investors and entrepreneurs will watch how A* deploys Fund III over the coming months, particularly which subsegments of AI and fintech attract the largest allocations. The firm’s combination of institutional backing, repeat fundraising success and a willingness to back unconventional founder profiles gives it a distinctive footprint in the early-stage market.
