New York-based venture firm Primary Ventures has closed a new $625 million Fund V focused entirely on seed-stage investments nationwide. The size of the fund is notable for a firm that specialises in early-stage backing, highlighting how much the seed market has expanded.
According to industry reports, Ben Sun, co-founder and general partner at Primary Ventures, said the firm plans to invest between $5 million and $10 million per company.
The fund is expected to back 40 to 50 startups over the next three years and will also invest in pre-seed startups.
Expanding beyond New York
Primary Ventures built its reputation in New York, where much of its early portfolio was concentrated. That strategy has evolved.
The firm now invests across the US, with deals in cities such as Chicago, Seattle, Virginia, and Washington, D.C. Startup talent is no longer limited to a handful of tech hubs, and that high-potential founders are emerging nationwide.
Broad sector coverage
Although Primary calls itself a generalist investor, the firm has partners who focus on specific areas, including consumer tech, vertical AI, fintech, healthcare, enterprise software, cybersecurity, and infrastructure.
Fund V has already invested in three startups. Since launching in 2015 with a $60 million Fund I, Primary has steadily increased its fund sizes, later raising $100 million, $150 million, and $275 million across subsequent funds, as well as $163 million for an opportunity fund.
The firm now manages about $1.65 billion in assets. Its portfolio includes companies such as Etched, Alloy, Chief, and Dandelion Health.
Sun believes seed investing is increasingly becoming its own asset class. As AI and other technologies reshape industries, investors are competing more aggressively to secure promising early-stage deals.
A fund of this size, he noted, allows Primary to compete for top founders and provide more resources at the start of a company’s journey.
Other firms are following a similar path. Sequoia Capital recently raised a $200 million seed fund, while Uncork Capital closed a $225 million seed fund last year.
