Attain Capital introduced Tuesday the shut of a $265 million Fund V. The thesis of the 11-year-old, San Francisco agency is to again founders constructing AI functions that may “broaden human potential,” Tony Wan, head of platform at Attain Capital, instructed TechCrunch. In follow, he added, meaning taking a look at founders constructing throughout three areas: studying, well being, and work.
“We imagine AI ought to serve human flourishing, not substitute it,” Wan stated. The agency’s earlier investments embrace Replit, ClassDojo, and Coral Care.
The brand new fund will write checks of $1 million to $10 million, spanning pre-seed by means of Collection A, into roughly 50 corporations over the subsequent three years. To date, no corporations have been backed by means of Fund V.
Restricted companions embrace Capricorn Funding Group, the Los Angeles Hearth and Police Pensions, the LEGO Basis, and Faculty Board. Talking to TechCrunch, basic accomplice Jomayra Herrera stated fundraising went easily and that the crew was in a position to elevate the brand new fund in lower than six months.
“The overwhelming majority of our LPs doubled down, and we introduced on a number of new marquee LPs,” Herrera stated. “We attribute this to LP curiosity in sector-focused boutique funds that target conviction-based investments.”
Attain Capital’s new fund is noteworthy given the barbell form the broader fundraising market has taken in recent times, with capital flowing overwhelmingly to massive, brand-name funds on one finish and to sharply centered specialists on the opposite, with generalist corporations within the center struggling to get LPs’ consideration.
Evaluation by PitchBook and the Nationwide Enterprise Capital Affiliation discovered that established firms captured more than 90% of the roughly $62 billion raised throughout U.S. VC funds by means of Might of this yr, leaving a smaller pool of first-time and mid-sized managers to compete for no matter’s left. Attain’s thesis, with over a decade of edtech and impact-investing, suits the mildew of the sort of specialist fund LPs have remained open to funding.
The outfit beforehand raised $215 million for Fund IV in 2023 and $165 million for Fund III in 2021.
Considered one of its most up-to-date exits got here in June, when Superhuman — the productiveness platform now owned by Grammarly — acquired GPTZero, the AI-detection startup co-founded by Princeton graduate Edward Tian. Phrases weren’t disclosed, however GPTZero had grown to greater than 19 million registered customers and $30 million in annual recurring income on simply $13.5 million raised, and Attain was certainly one of a number of traders within the firm, alongside Uncork Capital, Footwork, and Jack Altman’s Alt Capital.
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