Kevin Hartz’s A* takes a ‘less-is-more’ approach with new $450m fund
May 12, 2026 – 4:08 pm
While AI peers chase billion-dollar megafunds, the Eventbrite founder’s venture firm has gone the other way. Kevin Hartz, the Eventbrite co-founder turned long-time seed investor, has closed a $450 million fund at A*, his San Francisco venture firm, according to Bloomberg. The vehicle avoids the multi-billion-dollar AI megafund template that has dominated fundraising for the past 18 months.
A*’s previous fund, Fund II, raised $315 million in June 2024 and was oversubscribed. Fund I closed at $300 million in 2021. The new $450 million mark represents a controlled step up, aligning with Hartz’s strategy of high-conviction bets rather than a sprawl of small investments.
The key framing is what Bloomberg calls a "less-is-more" approach: smaller funds relative to AI giants, higher investment per company, and discipline against following hot rounds at any price. This pitch counters recent raises ranging from $3 billion to $10 billion, where check sizes increasingly resemble late-stage growth investments dressed as venture capital.
A* was founded in 2020 by Hartz alongside Gautam Gupta, former Uber finance head and Opendoor operator, and Bennett Siegel, ex-Coatue partner who backed Peloton and DoorDash. Its portfolio spans developer tools, AI infrastructure, consumer internet, marketplaces, SaaS, and CRM. Cheque sizes range from $100,000 to about $10 million, with a sweet spot near $3 million, placing it firmly in the seed and Series A territory.
Hartz has publicly backed younger founders over the past year, including significant investments in teenage-led companies. This stance, combined with A*’s preference for fewer companies and longer positions, contrasts the industry’s tilt toward growth-stage allocation.
The broader context is challenging for the megafund thesis. Andreessen Horowitz raised $3 billion earlier this year to bet against what its partners described as an AI bubble; other top firms have raised even larger funds aimed at single-company concentration. A* argues that the seed market still has room for funds prioritizing pricing discipline over sheer size.
The effectiveness of A*’s strategy will be tested. Late-stage AI valuations remain elevated relative to revenue, and a smaller fund cannot rely on follow-on investments to compete with capital-rich rivals on pro-rata terms. A* must either convince founders to leave more equity available in the seed stage or accept dilution that growth-stage peers won’t face. Hartz has navigated these calculations before, believing the math still works when entry prices are right and companies are held long enough for compound growth.