Primary Ventures closes $625M fund for nationwide seed investing

Primary Ventures has closed a $625 million Fund V, marking an expansion of its early-stage investment strategy. The vehicle will focus on seed investing—which refers to early-stage venture capital—on a nationwide scale. Ben Sun, co-founder and general partner at Primary Ventures, stated that the fund will also invest as early as pre-seed, which represents the earliest stage of venture capital funding. The fund’s size reflects a broader shift in the venture landscape, where early-stage rounds have grown.

According to Sun, the average check size for Fund V will range from $5 million to $10 million. The firm hopes to invest in 40 to 50 companies over the course of three years. While Primary Ventures is historically based in New York—previously focusing most of its investments in the Big Apple—the firm has shifted its geographic thesis. It is now deploying capital nationwide, having completed deals in SF, Chicago, Seattle, Virginia, and D.C. Sun noted that talent and startups are emerging everywhere, and the potential outcomes are larger than they have ever been.

Sun views seed investing as an evolving independent asset class. He noted that a fund of this scale is necessary to compete as firms vie for deals. “I think [a fund of this size] allows you to go in and compete and bring more resources to the table to work with the best founders and opportunities,” Sun said. This competitive environment includes other venture firms raising dedicated early-stage vehicles, such as Sequoia, which recently raised a $200 million seed fund, and Uncork Capital, which announced a $225 million seed fund last year. Sun added that Primary Ventures covers probably 80% to 90% of the seed sector activities.

The firm’s capital under management has grown since its launch. Primary Ventures raised $60 million for Fund I in 2015, followed by $100 million for Fund II, and $150 million for Fund III. Prior to the current vehicle, the firm raised a $275 million fund alongside a $163 million opportunity fund, which is a secondary fund used to make follow-on investments in existing portfolio companies. Today, the firm manages $1.65 billion in assets under management. Its portfolio includes companies such as the AI chip company Etched, risk management platform Alloy, women’s networking hub Chief, and AI marketplace Dandelion Health.

Why it matters

The fund size highlights how early-stage rounds have grown in the AI era, potentially establishing seed investing as a distinct, high-stakes asset class rather than just a starting point.