Reach Capital closes $265 million fund to back human-focused AI

Reach Capital has raised $265 million for Fund V, its largest fund to date, as the San Francisco investment firm doubles down on early-stage AI startups designed to augment human capabilities, TechCrunch reported Tuesday.

Reach Capital plans to target startups across learning, health and work. According to head of platform Tony Wan, the firm’s core belief is that AI should “serve human flourishing, not replace it.”

Fund V will make investments ranging from $1 million to $10 million at the pre-seed through Series A stages. Reach expects to back about 50 companies over the next three years, although it has not yet deployed capital from the new fund. Its existing portfolio includes companies such as Replit, ClassDojo and Coral Care.

The fund attracted capital from existing and new LPs, including Capricorn Investment Group, the Los Angeles Fire and Police Pensions, the LEGO Foundation and College Board. General partner Jomayra Herrera said fundraising took less than six months and that the result reflected growing investor interest in boutique funds with clearly defined sectors and conviction-driven strategies.

The round comes after Reach raised $165 million for Fund III in 2021 and $215 million for Fund IV in 2023.