In edtech, history matters Reach Capital just closed its largest fund to date

News Summary

  • Chu said that LPs also resonated with the “educated bench” of investors at the firm, which bring together over 20 years of public school experience.Not much is changing for Reach Capital’s strategy between funds (Chu says that edtech valuations are starting to come down to March 2020 levels).
  • The San Francisco-based venture firm saw an increase in digital infrastructure, remote learning and society’s ever fickle attention as an opportunity — and unsurprisingly, those same tailwinds then helped Reach close its largest fund to date.Fast-forward two years, we’re now in a different world, socially, politically and technologically.
  • More simply put: How is AI making lives better?” Ironically enough, the same question he sees as vital for AI is the same question that edtech success has always hinged on: Can it work for the right people, at the right time, in the right, most equitable way?
  • So, has edtech’s venture pitch changed?“I think the fact that edtech may not be in the news so much anymore, it’s a good thing,” says Esteban Sosnik, partner at Reach Capital.
  • Beyond the fact that no one is talking about Zoom school or learning pods anymore, edtech startups raised $10.6 billion last year, down 49% from the year prior.
  • Reach Capital, one of the first venture firms to focus exclusively on edtech, closed its last investment vehicle during an unprecedented boom within tech.
Reach Capital, one of the first venture firms to focus exclusively on edtech, closed its last investment vehicle during an unprecedented boom within tech. The San Franciscobased venture firm saw an [+3376 chars]