Reach Capital raises $265M Fund V to back AI founders building to ‘expand human potential’
Reach Capital, an 11-year-old San Francisco venture firm, has closed a $265 million Fund V aimed at backing AI founders whose products “expand human potential” across learning, health and work. The raise stands out against a broader venture market that has become increasingly barbell-shaped, with large brand-name funds and narrow specialists attracting most capital while generalist mid-sized firms struggle, and it underscores continued investor appetite for focused, conviction-led edtech and impact-oriented strategies.
The fund will deploy $1 million to $10 million cheques from pre-seed through Series A into roughly 50 companies over the next three years, though none have yet been backed. Limited partners include Capricorn Investment Group, the Los Angeles Fire and Police Pensions, the LEGO Foundation and College Board, and general partner Jomayra Herrera said the raise took under six months, with most existing LPs re-investing alongside new backers. It follows Fund IV ($215 million, 2023) and Fund III ($165 million, 2021); past investments include Replit, ClassDojo and Coral Care, and a recent exit saw portfolio company GPTZero acquired by Grammarly-owned Superhuman in June.
- Reach Capital closes $265M Fund V for AI-focused startups
- Focus areas: learning, health and work applications
- Backs ~50 firms with $1M–$10M cheques over three years
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Reach Capital is a San Francisco investment firm that backs young companies, giving them money in exchange for a stake in the business. Its focus includes education, health and work, and it has previously invested in companies such as classroom platform ClassDojo and coding tool Replit.
The firm’s investors, known as limited partners, include organisations such as the LEGO Foundation and College Board. Reach Capital plans to invest in about 50 early-stage companies, with individual investments ranging from $1 million to $10 million.
The fund is part of a venture capital market where some investors favour large firms or specialists in a narrow area, while mid-sized generalist firms can find it harder to raise money. Reach Capital’s focus on AI and products intended to support people in learning, health and work reflects one approach to investing in that market.