"A* closed a $450m fund at A*, his San Francisco venture firm, according to Bloomberg . The vehicle pointedly avoids the multi-billion-dollar AI megafund template that has dominated venture fundraising for the past 18 months."
"The framing on this round is what Bloomberg, citing Hartz, calls a less-is-more strategy: a smaller fund relative to the AI-stage giants, a higher proportion deployed per company, and a discipline against following hot rounds at any price."
"The new $450m mark represents a controlled step up, in keeping with what Hartz has previously described as a deliberately constrained portfolio of high-conviction bets rather than a sprawl of small cheques."
"Its portfolio spans developer tools, AI infrastructure, consumer internet, marketplaces, SaaS, and CRM. Cheque sizes range from $100,000 to about $10m, with a sweet spot near $3m , placing it firmly in the seed and Series A territory."
A* closed a $450m venture fund led by Kevin Hartz, with the vehicle intentionally avoiding the large AI megafund fundraising model. Fund II previously closed at $315m in June 2024 and was oversubscribed, while Fund I closed at $300m in 2021. The new fund represents a controlled increase and follows a less-is-more approach, including a smaller fund size than AI-stage giants, a higher proportion deployed per company, and discipline against chasing hot rounds. The strategy positions A* as a counter-narrative to firms raising $3bn to $10bn with check sizes resembling late-stage growth investments. A* invests across developer tools, AI infrastructure, consumer internet, marketplaces, SaaS, and CRM, with typical checks from $100,000 to about $10m and a sweet spot near $3m. The firm favors fewer companies and longer-held positions, including support for younger founders.
Read at TNW | Investors-Funding
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