A* Star Capital Raises $450 Million to Fuel the Next Wave of Tech Innovation
A* Star Capital has officially closed its third fund, securing $450 million to back early-stage founders. This latest capital injection marks a significant step up for the firm, which previously raised $300 million in 2021 and $315 million in 2024. Led by serial entrepreneur Kevin Hartz and former Coatue partner Bennett Siegel, the firm continues to establish itself as a heavyweight in the venture landscape.
A Broad Mandate for Growth
The new fund maintains a generalist investment strategy, targeting high-growth sectors including:
- Artificial Intelligence applications
- Fintech and financial services
- Healthcare innovation
- Cybersecurity
A* plans to deploy this capital over the next two to three years, targeting at least 30 startups. With check sizes typically ranging from $3 million to $5 million, the firm focuses on providing substantial early support to help companies scale rapidly.
Pedigree and Portfolio
The firm’s leadership brings deep operational and investment experience. Kevin Hartz is widely recognized for co-founding Xoom (acquired by PayPal for $1.1 billion) and the ticketing giant Eventbrite. His partner, Bennett Siegel, brings a rigorous analytical background from his time at Coatue Management and Boston Consulting Group.
A* has already built a reputation for picking winners, with a portfolio that includes the high-flying fintech company Ramp and the AI-driven talent platform Mercor.
Betting on the “Next Gen” Founder
One of the firm’s most distinct characteristics is its willingness to back exceptionally young talent. Roughly 20% of the firm’s portfolio consists of companies led by teenage entrepreneurs. This focus on the “next generation” of builders is supported by a sophisticated group of Limited Partners, including foundations, nonprofits, and major endowments like Carnegie Mellon University.
