Shauntel Garvey of Reach Capital on EdTech, raising a sector focused fund, and the importance of being an active seed investor beyond the A round

Follow me @samirkaji for my thoughts on the venture market, with a focus on the continued evolution of the VC landscape. Our guest today is Shauntel Garvey, co-founder and general partner of education tech focused Reach Capital. She has a long history investing in ed-tech companies stemming back from her time at NewSchools Venture Fund. What I love about the Reach team is how thoughtfully they’ve constructed their firm and partnership which by far is one of the most diverse in all of venture. Currently Reach has $300 AUM and has invested in companies such as Mystery Science (acq by Discovery Education), Nearpod, Outschool, ClassDojo, and Epic.Shauntel did her undergrad at MIT, and got a MA in Education and MBA from Stanford.Listen to our conversation to learn more about how she’s seen the EdTech market evolve over the last few years and particularly since the pandemic, why they are active with portfolio companies after typical seed funds are, and how she thinks about investing thesis. A message from our sponsorFrank, Rimerman + Co.’s history is closely intertwined with that of Silicon Valley. With humble beginnings similar to so many start-ups, Frank, Rimerman was formed with a desire to serve the entrepreneurial and venture communities of the Valley and the determination to think outside-the-box.When it comes to venture funds, we work with almost 500 VC groups from over 20 states across the USA. We have worked with over 350 fund groups throughout their first year, making us one of the leading providers in the country to emerging managers.No one wants to be bored at work. That’s why we chose to work with some of the most innovative and creative people – people who are changing the world around us every day. Their excitement fuels our passion and determination to grow and serve this special community.Frank, Rimerman + Co, Passion Works Here.www.frankrimerman.comIn this episode we discuss:01:29 Shauntel’s journey into VC03:12 The decision to start Reach from NewSchools04:39 Why they decided to go with a larger partnership in Fund 107:14 The challenges of raising a sector specific fund for a sector not well understood at the time09:50 Pitching impact focused LPs vs return focused LPs11:51 How sector-specific managers answer the question about being too narrow16:18 Why despite being as seed fund, Reach stays with their companies throughout their lifecycle20:06 How they think about hiring at Reach21:51 How Reach looks at talent development as a part of its legacy23:41 Things firms can do early to build a generational legacy25:51 Developing and evolving an investment thesis28:24 Creating systems to allow for proactive outreach and investment30:03 Building strong a back office and operations32:50 Shauntel’s greatest learning as an investor33:55 What she’s learned from her misses36:42 The investor she aspires to be more likeMentioned in this episode:* Reach CapitalWe’d love to know what you took away from this conversation with Shauntel! Follow @SamirKaji and give your insight and questions using the hashtag #ventureunlocked. If you’d like to be considered as a guest or have someone you’d like to hear from (GP or LP), drop a direct message on Twitter.Podcast Production support provided by Agent Bee Agency This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit ventureunlocked.substack.com