Reach Capital closes $265M Fund V targeting AI in learning, health, and work
Original: Reach Capital raises $265M Fund V to back AI founders building to ‘expand human potential’
Why This Matters
Reach Capital's growth from $165M to $265M across three funds signals sustained LP appetite for sector-focused AI impact investing.
Reach Capital, an 11-year-old San Francisco VC firm, announced the close of its $265 million Fund V on August 18, 2026. The fund will back approximately 50 AI-focused companies across pre-seed to Series A over three years, with check sizes ranging from $1M to $10M.
Reach Capital closed its $265 million Fund V, targeting AI founders building across three sectors: learning, health, and work. The firm's thesis centers on AI that 'expands human potential' rather than replacing it, according to head of platform Tony Wan. General partner Jomayra Herrera noted the fund was raised in under six months, with the 'vast majority' of existing LPs re-upping their commitments. New limited partners include Capricorn Investment Group, the Los Angeles Fire and Police Pensions, the LEGO Foundation, and College Board. The firm plans to back roughly 50 companies over three years at pre-seed through Series A, writing checks of $1M to $10M. No Fund V investments have been announced yet. Fund V follows a $215M Fund IV raised in 2023 and a $165M Fund III in 2021. Notable portfolio companies include Replit and ClassDojo. A recent exit came in June 2026 when GPTZero — which had reached 19 million registered users and $30M ARR on $13.5M raised — was acquired by Grammarly via its Superhuman platform. According to PitchBook and NVCA data, established firms captured over 90% of the roughly $62 billion raised by U.S. VC funds through May 2026, highlighting the competitive environment for mid-sized specialist funds.