Kevin Hartz’s A* raises its second oversubscribed fund in three years

In Q1 of this year, venture firms raised $9.3 billion according to PitchBook data, indicating that 2024 may not surpass the record $81.8 billion raised in 2023. While the fundraising environment is challenging, some emerging VCs like A* have managed to stand out.

A*, led by Kevin Hartz (former Eventbrite founder), Bennett Siegel (former Coatue partner), and Gautam Gupta (former Opendoor and Uber operator), successfully raised $315 million for its oversubscribed Fund II. The firm remains focused on leading seed rounds and supporting portfolio companies at Series A, with selective new investments at Series B.

Siegel emphasized their strategic focus on the seed and inception stages, partnering with founders from zero to one, a concept popularized by Peter Thiel’s book. This approach aims at nurturing new and unproven concepts into viable businesses with products and customers, rather than expanding on existing ideas.

A* maintains a generalist approach, investing across diverse industries, driven by their philosophy of backing exceptional founders regardless of the sector they operate in. Currently, the firm is particularly active in AI and consumer tech, reflecting industry trends and opportunities.

Gupta highlighted that the key to their success lies in backing the right people, underscoring their commitment to supporting visionary entrepreneurs who drive innovation.

One notable shift from Fund I to Fund II is the investor base. While Fund I attracted backing from prominent VCs and operators like Max Levchin, David Sacks, Peter Thiel, Tony Xu (DoorDash co-founder and CEO), and Eric Wu (Opendoor co-founder and president), Fund II was exclusively funded by institutional investors.

This evolution underscores A*’s growth trajectory and its ability to attract institutional support as it continues to nurture early-stage startups and expand its influence in the venture capital landscape.