Reach Capital has announced the close of a $265 million Fund V. The fund was created to back founders building AI applications that can “expand human potential,” according to a TechCrunch report citing Tony Wan, head of platform at Reach Capital. He said this means focusing on founders building across three areas: learning, health and work.
“We believe AI should serve human flourishing, not replace it,” Wan said. The firm’s previous investments include Replit, ClassDojo and Coral Care.
The new fund will write checks ranging from $1 million to $10 million, spanning pre-seed through Series A, and invest in roughly 50 companies over the next three years. No companies have been backed through Fund V yet.
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Limited partners include Capricorn Investment Group, the Los Angeles Fire and Police Pensions, the LEGO Foundation and College Board. General Partner Jomayra Herrera told TechCrunch that fundraising went smoothly and that the team was able to raise 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.”
According to BusinessWire, Reach Capital plans to focus on early-stage companies pioneering AI applications across learning, health and work.
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“The systems that shape how people learn, stay healthy, and build meaningful lives are being reimagined in real time,” said Jennifer Carolan, co-founder and general partner of Reach Capital. “AI gives this generation of founders an extraordinary opportunity to make those systems more accessible and effective. Reach V allows us to keep doing what we do best: partnering early with mission-driven founders who understand these problems deeply and are building toward measurable, lasting change.”
Analysis by PitchBook and the National Venture Capital Association found that established firms captured more than 90% of the roughly $62 billion raised across U.S. VC funds through May of this year. This leaves a smaller pool of first-time and midsized managers to compete for the remaining capital. Reach’s investment thesis reportedly aligns with the type of specialist fund that limited partners have remained willing to back.
Previously, the firm raised $215 million for Fund IV in 2023 and $165 million for Fund III in 2021. Reach, which was founded in 2015, has backed more than 180 companies since its founding.