Reach Capital is taking a broader view of technology investing with its latest $265 million fund, moving beyond traditional education technology into businesses working across learning, healthcare and employment. The new fund is the San Francisco-based firm's fifth and largest to date, taking assets under management close to $1 billion.

The shift is significant because Reach Capital built its reputation around early-stage education companies. Its first fund, launched in 2015, was valued at $53 million. Its newest vehicle is substantially larger and reflects a different investment environment from the one that shaped the firm's early years. Education technology experienced a major investment boom during the pandemic, when remote learning rapidly expanded. Funding subsequently cooled as investors became more selective.

Artificial intelligence is now creating another opening for the sector. Rather than treating AI as a standalone technology category, Reach is looking at businesses where AI can change how people learn, access healthcare or develop skills for the workplace. That gives the fund a wider mandate while maintaining its original focus on improving access and outcomes.

The firm's strategy also reflects the growing overlap between education and workforce development. Learning is increasingly becoming a continuous process rather than something limited to schools and universities. Workers need new technical and professional skills as industries change, while healthcare systems face persistent shortages of trained personnel.

Reach plans to invest in approximately 50 early-stage companies through the new fund, concentrating on pre-seed, seed and Series A opportunities. Around a quarter of the capital is expected to be reserved for follow-on investments, allowing the firm to continue supporting companies as they develop.

Its previous investments provide examples of how the firm's definition of ed-tech has evolved. Replit, for instance, originally attracted attention because its coding platform was being used in education. The company later expanded well beyond classrooms and became part of the broader AI software ecosystem.

Healthcare is also becoming more important to Reach's investment thesis. The firm's recent portfolio includes companies addressing mental health support in schools and online training for healthcare workers. These examples highlight a larger trend: education, healthcare and employment are becoming increasingly interconnected markets.

For business leaders, the development is worth watching because it demonstrates how venture capital strategies can change alongside technology and economic conditions. Instead of chasing a narrow sector label, investors are increasingly looking for companies capable of solving problems that cross traditional industry boundaries.

Reach's latest fund therefore represents more than an expansion of investment categories. It signals a belief that the next generation of high-impact startups may operate simultaneously across education, healthcare and workforce development.