technology
A* Capital Closes $450M Fund III for Early-Stage Investments
The early-stage venture firm announced the close of its third fund on May 12, 2026. A* Capital plans to invest in at least 30 companies with average checks between $3 million and $5 million. The firm, founded in 2020, has previously backed fintech company Ramp and AI firm Mercor.
May 12, 2:45 PM·1m read1 source
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A* Capital announced a $450 million Fund III on May 12, 2026, closing its third fund at that size. The early-stage venture firm takes a generalist approach backing companies in AI applications, fintech, healthcare, and security. It aims to back at least 30 startups with average check sizes between $3 million and $5 million.
The firm will deploy the Fund III capital over the next two to three years. A* Capital deployed its previous funds over the same timeframe. Limited partners in the new fund include nonprofits, foundations and endowments, with Carnegie Mellon University among the publicly named backers.
A* Capital was founded in 2020 and is run by Kevin Hartz and Bennet Siegel. The firm previously raised a $315 million Fund II in 2024 and a $300 million Fund I in 2021. 1 billion in 2015, and Eventbrite, which went public in 2018.
TechCrunch reported that close to 20% of A* Capital’s current portfolio involve teenage entrepreneurs. The firm has backed the fintech company Ramp and the AI firm Mercor.
The $450 million size represents a step up from the firm’s earlier vehicles. Fund I closed at $300 million in 2021. Fund II reached $315 million last year.
