Reach Capital announced on Tuesday the close of a $265 million Fund V, a new vehicle aimed at backing founders who are building AI applications to "expand human potential." The San Francisco-based firm, now 11 years old, is focusing its investments across three core areas: learning, health, and work, according to Tony Wan, head of platform at Reach Capital.
"We believe AI should serve human flourishing, not replace it," Wan said. The firm's portfolio includes notable names such as Replit, ClassDojo, and Coral Care.
With Fund V, Reach Capital plans to write checks ranging from $1 million to $10 million, spanning pre-seed through Series A stages. The firm expects to invest in roughly 50 companies over the next three years. As of now, no investments have been made from Fund V yet.
The fund's limited partners (LPs) include Capricorn Investment Group, the Los Angeles Fire and Police Pensions, the LEGO Foundation, and the College Board. General partner Jomayra Herrera told TechCrunch that the fundraising process went smoothly, with the team closing the new fund in less than six months.
"The vast majority of our LPs doubled down, and we brought on a few new marquee LPs," Herrera said. "We attribute this to LP interest in sector-focused boutique funds that focus on conviction-based investments."
Reach Capital's latest fund is significant given the current "barbell shape" of the broader fundraising market. In recent years, capital has flowed overwhelmingly to either giant, brand-name funds or sharply focused specialists, leaving generalist firms in the middle struggling to capture LP attention. According to analysis by PitchBook and the National Venture Capital Association, established firms captured more than 90% of the roughly $62 billion raised across U.S. VC funds through May 2026. This leaves a smaller pool of first-time and mid-sized managers competing for the remainder. Reach's decade-plus track record in edtech and impact investing positions it as the kind of specialist fund LPs have remained open to supporting.
The firm previously raised $215 million for Fund IV in 2023 and $165 million for Fund III in 2021.
One of Reach Capital's most recent exits came in June 2026, when Superhuman—the productivity platform now owned by Grammarly—acquired GPTZero, the AI-detection startup co-founded by Princeton graduate Edward Tian. While terms were not disclosed, GPTZero had grown to more than 19 million registered users and $30 million in annual recurring revenue on just $13.5 million raised. Reach was one of several investors in the company, alongside Uncork Capital, Footwork, and Jack Altman's Alt Capital.
via TechCrunch