Reach Capital, a San Francisco-based venture firm co-founded by Jennifer Carolan and Shauntel Garvey, focused exclusively on edtech for years before the sector ballooned with unicorns. The rare, female-led partnership closed its third fund in February, a $165 million vehicle and its largest to date. That said, returns from its previous funds show that the early bet on a now-revitalized sector is paying off.
Reach Capital’s second fund, an $82 million vehicle closed in 2017, posted a net internal return rate of 72.1% as of Q2 2021, according to data intended for LPs and obtained by TechCrunch. The fund, which put investments into Paper, Winnie and now-unicorns Handshake and Outschool, ranks multiple percentage points above the top quartile of funds of that vintage. According to Cambridge Associates data, the top quartile of funds of that vintage had a net IRR of 47.64% the same quarter.
By comparison, Reach Capital’s first fund was multiple percentage points below the top quartile of fund performers of its vintage year, 2015.
It’s worth noting that Reach Capital’s returns for its second fund are mostly paper gains, meaning that the net IRR is based on an uptick in valuations. Given the fact that the …read more
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