At a glance
- The San Francisco firm announced the fund in August, lifting assets under management to nearly $1 billion, according to Crunchbase News.
- Reach was founded in 2015 as a spin-out of NewSchools Venture Fund and began by backing technology sold into K-12 schools and districts.
- For an allocator, the arithmetic is: $265 million across roughly 50 companies works out to about $5.3 million per company before any reserve for follow-on capital.
Reach Capital plans to invest its $265 million fifth fund in roughly 50 companies across pre-seed, seed and Series A, partner James Kim told Crunchbase News on Oct. 21.
The San Francisco firm announced the fund in August, lifting assets under management to nearly $1 billion, according to Crunchbase News.
Reach was founded in 2015 as a spin-out of NewSchools Venture Fund and began by backing technology sold into K-12 schools and districts. Its mandate now covers learning, health and work, and it has backed more than 180 companies, including ClassDojo, Cartwheel, Stepful and Replit.
For an allocator, the arithmetic is: $265 million across roughly 50 companies works out to about $5.3 million per company before any reserve for follow-on capital.
Kim said ownership stakes and secondary transactions have shaped how the firm returns capital. The key diligence question is how much of the pool is reserved for follow-ons rather than the 50 new teams.
The founding thesis came out of NewSchools, where three of Reach's four founding partners were already doing for-profit seed investing before the 2015 spin-out, Kim said. They expected one-to-one device ratios and broadband penetration in schools to produce demand for software for students, teachers and administrators; early bets Newsela, Nearpod and ClassDojo became familiar edtech names.
Reported by the Venture Capital desk from Crunchbase News. Published . Corrections