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Reach Capital closes $265M fund for AI startups

Reach Capital announced the close of an oversubscribed $265 million Fund V to back AI founders building applications in learning, health and work. The San Francisco firm plans to invest in about 50 companies over the next three years.

  • Reach Capital closed an oversubscribed $265 million Fund V.
  • The fund will write checks of $1 million to $10 million across pre-seed through Series A.
  • No companies have been backed through Fund V yet.

Reach Capital, an 11-year-old San Francisco firm, announced Tuesday the close of a $265 million Fund V. The firm plans to back founders building AI applications that can “expand human potential,” focusing on 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 new fund will write checks of $1 million to $10 million, spanning pre-seed through Series A, into roughly 50 companies over the next three years. So far, no companies have been backed through Fund V.

Limited partners include Capricorn Investment Group, the Los Angeles Fire and Police Pensions, the LEGO Foundation and College Board. General partner Jomayra Herrera said fundraising went smoothly and the team raised 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.

Reach Capital previously raised $215 million for Fund IV in 2023 and $165 million for Fund III in 2021. One of its recent exits came in June when Superhuman acquired GPTZero, an AI-detection startup in which Reach was an investor.

Why this matters: The fund close highlights continued investor interest in specialist venture funds focused on AI applications, even as broader fundraising remains concentrated among large, established firms.

What this means for you: Founders building AI applications in learning, health or work may find a new source of early-stage funding from Reach Capital's Fund V.

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