Reach Capital Closes $265M Fund V to Back AI Founders

Reach Capital has announced the close of its $265 million Fund V, which will focus on backing founders building AI applications that can “expand human potential,” according to Tony Wan, head of platform at Reach Capital.

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. Speaking to TechCrunch, general partner Jomayra Herrera said 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.”

Reach Capital’s new fund is noteworthy given the barbell shape the broader fundraising market has taken in recent years, with capital flowing overwhelmingly to giant, brand-name funds on one end and to sharply focused specialists on the other, with generalist firms in the middle struggling to get LPs’ attention.

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The outfit previously raised $215 million for Fund IV in 2023 and $165 million for Fund III in 2021. One of its most recent exits came in June, when Superhuman — the productivity platform now owned 5 million raised.

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Dominic-Madori Davis is a senior venture capital and startup reporter at TechCrunch. She is based in New York City.

You can contact or verify outreach from Dominic davis@techcrunch.com or via encrypted message at +1 646 831-7565 on Signal.

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