Pear VC has closed its fifth fund at $333 million, marking a strategic shift towards smaller, focused investments in AI startups. The fund, 23% smaller than its predecessor, underscores Pear's conviction in early-stage founder relationships.
TL;DR
- Pear VC closes $333M Fund V, bringing assets under management to over $1.1B.
- The fund targets AI and other tech sectors, focusing on pre-seed and seed investments.
- Pear argues that early access to founders trumps larger capital pools in today's market.
What happened
Pear VC has closed Fund V at $333 million, approximately $99 million less than its $432 million Fund IV raised in May 2023. This brings the firm's assets under management to over $1.1 billion. The fund will primarily target new pre-seed and seed investments in AI, business-to-business technology, biotech, consumer, deep tech, fintech, and healthcare over the next two and a half years, with reserves for follow-on rounds in standout companies.
The closure of Fund V comes amid a trend of venture capital consolidation. According to the National Venture Capital Association and PitchBook data, the 10 largest US venture funds took 32.9% of all venture capital raised in 2025, up from 13% in 2021. Despite this concentration, Pear's Fund V is significantly larger than the average $78 million raised by other funds in 2025.
Why it matters
Pear VC's decision to raise a smaller fund underscores its belief in the value of early access to founders over the size of the capital pool. The firm argues that AI has democratized startup building, making early relationships with founders more critical than ever. This strategy could appeal to AI startups seeking hands-on, early-stage support.
For investors, Pear's approach presents a differentiated play in the crowded venture capital space. The firm's portfolio includes notable successes like DoorDash, Vanta, and recent AI-focused companies such as Listen Labs, Forus, and Gravis Robotics. Pear's ability to identify and nurture early-stage talent could make it an attractive partner for those looking to back the next generation of AI innovators.
Key facts
- Pear VC's Fund V closed at $333 million, 23% smaller than its $432 million Fund IV.
- The fund brings Pear's assets under management to over $1.1 billion.
- Fund V will focus on pre-seed and seed investments in AI and other tech sectors.
- The 10 largest US venture funds took 32.9% of all venture capital raised in 2025.
- Pear's portfolio includes DoorDash, Vanta, Listen Labs, Forus, and Gravis Robotics.
- The firm promoted three former founders to general partners, each bringing deep industry experience.
Context
Pear VC's strategy reflects a broader shift in the venture capital landscape, where early-stage investors are increasingly focused on building strong founder relationships. This approach is particularly relevant in the AI sector, where technological barriers to entry are lowering, and the market is becoming more competitive.
The firm's decision to raise a smaller fund also highlights the challenges faced by mid-sized venture capital firms in a market dominated by a few large players. By focusing on its core competency—finding and supporting exceptional founders—Pear aims to differentiate itself and continue delivering strong returns for its investors.
