A* Venture Firm Raises $315 Million for Fund II

Sydney Times

— 1 min read
A* Venture Firm Raises $315 Million for Fund II

Introduction

A* Venture firm, led by former Eventbrite founder Kevin Hartz, raised $315 million for its oversubscribed Fund II. The firm focuses on leading seed rounds and supporting portfolio companies at the Series A stage. They aim to back early-stage founders in different industries.

Fundraising Success

  • A* Venture firm raised $315 million for Fund II
  • Fund II was oversubscribed
  • Focus on leading seed rounds and supporting companies at Series A stage

Investment Strategy

  • Found success in partnering with founders at zero to one stage
  • Planning to double down on portfolio companies at Series A
  • Making selective new investments at Series B stage

Generalist Approach

  • A* Venture firm invests across different industries
  • Focus on finding the right founders and following them
  • Spending time in AI and consumer tech industries

Shift in LP Base

  • Fund I had backing from well-known VCs and former operators
  • Fund II raised entirely from institutional investors
  • Common trend for firms to attract institutional investors at Fund II stage

Fund Size Strategy

  • Fund II intentionally kept modest step up from Fund I
  • Focus on generating high returns for investors
  • Preferred partner with a focus on mentorship

Portfolio Highlights

  • Backed 35 startups in Fund I
  • Notable investments include Ramp, Notion, and Faire
  • Led seed rounds for EyeTell, Paraform, and Aligned Marketplace
  • Incubated three companies still in stealth

Team Experience

  • Three founding partners bring vast experience across industries
  • Kevin Hartz's successful track record in scaling companies
  • Gautam Gupta's experience at Uber and Opendoor
  • Bennett Siegel's successful investments at Coatue

Future Outlook

  • Commited to finding and backing great early-stage founders
  • Helping companies grow from zero to one stage
  • Providing insights and assistance for success in the current market

In conclusion, A* Venture firm's Fund II raise of $315 million highlights their focus on early-stage investments and commitment to backing founders in various industries. With a team of experienced partners, the firm aims to continue its success in the ever-evolving venture capital landscape.

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