A-Star Raises $450 Million for 3rd Fund as AI VC Rivals Bulk Up

3 articles · Updated · Bloomberg · May 12

$450 million will back A-Star’s third and largest fund, which the firm says will stick to a selective early-stage strategy rather than chase every financing round.
A-Star plans to deploy the fund over nearly three years, investing in 30 to 40 seed companies with average checks of $3 million to $5 million and target ownership of at least 10%.
Kevin Hartz and Bennett Siegel argue seed investing works best with fewer, more deliberate bets, and say the firm will avoid funding direct competitors once it reaches that ownership threshold.
The raise stands in contrast to venture firms amassing multibillion-dollar pools for AI leaders such as OpenAI and Anthropic, including Andreessen Horowitz’s $15 billion fund earlier this year.

Is A-Star’s disciplined strategy missing out on the massive returns from capital-intensive AI giants?

In a market of giant AI deals, how can startups secure funding in the 'hollowed-out middle'?

As venture capital splits into two games, which strategy will ultimately deliver superior returns for investors?