Reach Capital Raises $265M Fund V to Back AI Startups Expanding Human Potential

Reach Capital Raises $265 Million Fund V to Back AI Startups

San Francisco-based venture capital firm Reach Capital has closed its fifth fund at $265 million to invest in early-stage companies using AI across learning, health and work.

The new fund will back founders building AI applications that the firm believes can expand human potential rather than simply replace human workers.

Reach Capital plans to invest between $1 million and $10 million per company, focusing on startups from pre-seed through Series A.

Investing in AI That Expands Human Potential

Reach Capital's Fund V is built around the firm's belief that AI should support human flourishing.

The firm's investment focus spans three primary areas: learning, health and work.

The strategy builds on Reach Capital's more than decade-long focus on education technology and impact investing.

The firm has previously backed companies including Replit, ClassDojo and Coral Care.

Backing Early-Stage AI Founders

Reach Capital expects to invest in approximately 50 companies over the next three years through Fund V.

The firm has not yet announced any investments from the new fund.

The investment range of $1 million to $10 million gives Reach flexibility to back startups from the earliest stages through Series A as they develop and scale their products.

Strong Support From Limited Partners

Limited partners in Fund V include Capricorn Investment Group, the Los Angeles Fire and Police Pensions, the LEGO Foundation and College Board.

Reach Capital said the majority of its existing limited partners increased their commitments to the new fund, alongside several new institutional investors.

The firm raised the $265 million fund in less than six months, according to general partner Jomayra Herrera.

A Specialist Strategy in a Competitive VC Market

The new fund arrives as venture capital fundraising has increasingly concentrated around large established firms and highly specialized investors.

Reach Capital's focused strategy around learning, health and work gives it a differentiated position within the market as AI investment continues to expand.

The firm previously raised $215 million for Fund IV in 2023 and $165 million for Fund III in 2021.

Recent Portfolio Activity

One of Reach Capital's recent portfolio developments came in June 2026, when Superhuman acquired AI detection startup GPTZero.

GPTZero had grown to more than 19 million registered users and $30 million in annual recurring revenue after raising $13.5 million.

Reach Capital was among the investors in GPTZero alongside Uncork Capital, Footwork and Alt Capital.

With Fund V, Reach Capital is now positioned to continue backing early-stage founders building AI applications across the human-centered areas of learning, health and work.