Reach Capital closes $265 million Fund V to fuel AI startups in education, health and work

Reach Capital disclosed that its new Fund V has reached a total of $265 million, continuing the firm’s eleven-year focus on AI ventures that “expand human potential.” The fund will back founders developing tools for learning, health and work, deploying checks between $1 million and $10 million across pre-seed to Series A rounds and targeting about 50 companies within three years. Backers include Capricorn Investment Group, the Los Angeles Fire and Police Pensions, the LEGO Foundation and College Board, with many existing LPs increasing their commitments.

General partner Jomayra Herrera said the fundraising closed in less than six months, attributing success to LP appetite for conviction-based, sector-specific funds. Reach Capital’s prior funds raised $215 million for Fund IV in 2023 and $165 million for Fund III in 2021, and recent exits include the sale of GPTZero to Superhuman/Grammarly.