A* Capital Unveils $450 Million Fund III for Generalist Venture Investing

Venture firm A Capital has taken a significant step forward in its investment strategy, announcing a $450 million Fund III to support early-stage startups across various categories.*

A* Capital's Fund III will focus on backing companies in AI applications, fintech, healthcare, and security, with an average check size ranging from $3 million to $5 million. The firm aims to invest in at least 30 startups, with the capital deployed over the next two to three years. This approach is consistent with the firm's previous funds, including a $315 million Fund II raised in 2024 and a $300 million Fund I in 2021.

The firm has garnered attention for its support of young founders, with close to 20% of its current portfolio involving teenage entrepreneurs. A* Capital has invested in notable companies such as Ramp, a fintech firm, and Mercor, an AI firm.

Key Highlights of A* Capital's Fund III

• Average check size: $3 million - $5 million

• Number of startups: at least 30

• Investment categories: AI applications, fintech, healthcare, and security

• Deployment period: 2-3 years

A* Capital's Background and Experience

A* Capital was founded in 2020 by Kevin Hartz and Bennet Siegel. Hartz is a serial entrepreneur known for co-founding Xoom, an international money-transfer service acquired by PayPal for $1.1 billion in 2015, and Eventbrite, an event-ticketing platform that went public in 2018.

"A* Capital is committed to supporting early-stage startups with innovative ideas and a strong potential for growth," said Kevin Hartz, co-founder of A* Capital. "We believe that our generalist approach will enable us to identify and back the most promising companies in various categories.""

Conclusion

A* Capital's $450 million Fund III marks a significant milestone in the firm's journey as a generalist venture investor. With a focus on backing young founders and deploying capital over the next two to three years, the firm is poised to support the growth of innovative startups across various categories.