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.