Reach Capital has banked $265M for its fifth fund, doubling down on a thesis that AI should expand human potential rather than replace it.
The education-focused firm will write checks of $1M to $10M, spanning pre-seed through Series A, into roughly 50 companies over the next three years. General partner Jomayra Herrera said the fund closed in under six months, with the vast majority of limited partners doubling down and a few marquee names joining.
LPs include Capricorn Investment Group, the Los Angeles Fire and Police Pensions, the LEGO Foundation and the College Board.
The raise stands out in a barbell fundraising market. PitchBook and NVCA data show established firms captured more than 90% of the roughly $62B raised across US VC funds through May, squeezing mid-sized generalists. Boutique, conviction-driven shops like Reach keep winning LP attention, Herrera said.
Reach’s portfolio spans Replit, ClassDojo and Coral Care, and it notched a June exit when Superhuman acquired GPTZero, an AI-detection startup Reach backed that grew past 19 million users and $30M in annual recurring revenue on just $13.5M raised.
The firm raised $215M for Fund IV in 2023 and $165M for Fund III in 2021.
