Reach Capital announced Tuesday the close of $265 million Fund V. The 11-year-old San Francisco firm backs founders building AI applications to "expand human potential" across learning, health, and work, said Tony Wan, head of platform. Previous investments include Replit, Class Dojo, and Coral Care. The new fund will write checks of $1 million to $10 million into roughly 50 companies over three years.

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 completed in under six months, with most LPs doubling down. "We attribute this to LP interest in sector-focused boutique funds that focus on conviction-based investments," she said.

Reach Capital's raise is notable amid a barbell market where established firms captured over 90% of the $62 billion raised by U.S. VC funds through May, per PitchBook and NVCA. The firm previously raised $215 million for Fund IV in 2023 and $165 million for Fund III in 2021.

A recent exit came in June when Superhuman — formerly Grammarly — acquired GPT Zero, co-founded by Princeton graduate Edward Tian. GPT Zero reached 19 million users and $30 million ARR on $13.5 million raised, with Reach among its investors.