Primary Ventures has closed a $625 million Fund V dedicated to seed investing, a notably large war chest for a firm focused exclusively on the earliest stage. The raise underscores how seed has matured into its own competitive arena—and how the AI wave is stretching the size and ambition of first checks.
The New York–born firm says the vehicle will back founders nationwide and is already at work, with three initial investments made. Primary now counts $1.65 billion in assets under management, buoyed by a track record that includes Etched in AI hardware, Alloy in risk management, Chief in executive networks, and Dandelion Health’s AI marketplace.
Why a $625M Seed Fund Makes Sense in Today’s Market
Seed has changed. What used to be a handful of angels and a $1 million check has become an institutional moment where founders often assemble multi-fund syndicates, line up design partners, and invest heavily in AI-native infrastructure before a Series A. Larger seed funds like this allow investors to lead or co-lead rounds with conviction and maintain meaningful reserves as time to the next milestone stretches.
Industry trackers such as the PitchBook-NVCA Venture Monitor and Carta’s funding datasets show that, while valuations cooled from the 2021 peak, seed round sizes remain historically elevated and “institutional seed” raises have become common. That dynamic favors platforms with broader operating resources—recruiting, go-to-market support, and data partnerships—so founders aren’t choosing only on price but on the full stack of help they can access.
Primary’s partners have argued that seed is effectively its own asset class. With AI driving capital intensity earlier—compute, model tuning, data acquisition—the firm aims to meet startups’ needs with deeper check-writing capacity and the ability to keep backing winners through follow-ons.
Expanding Beyond New York to a National Investment Focus
Although Primary built its brand in New York, its aperture has widened. Recent deals stretch from Chicago to Seattle and into Virginia and Washington, D.C., reflecting how technical talent and company formation have dispersed. Remote and hybrid work, coupled with continued spinouts from Big Tech and research hubs, have tipped the balance toward a more geographically diverse seed market.
This national stance also mirrors founder behavior: teams increasingly assemble across time zones, sell into regulated industries anchored outside the coasts, and recruit specialized operators where they live. A broader footprint gives Primary more shots on goal and proximity to customer bases in sectors like fintech, healthcare, and cybersecurity.
Strategy and Sectors in Focus for Primary Ventures
Primary calls itself a generalist, but the approach is staffed by sector specialists. Current focus areas include vertical AI, fintech, healthcare, enterprise software, cybersecurity, and infrastructure, alongside continued interest in consumer. That balance reflects where seed activity is most vibrant—and where early customer validation can arrive fastest through pilots and integrations.
The firm’s prior funds chart a steady climb: $60 million at launch in 2015, followed by $100 million and $150 million vehicles, then a $275 million core fund and a $163 million opportunity pool. Fund V continues that trajectory, designed to lead more rounds while keeping ample reserves to support breakouts. With three Fund V investments already made, Primary appears intent on maintaining pace despite a still-selective Series A environment.
How It Stacks Up in the Evolving Seed Landscape
Primary’s $625 million seed vehicle stands out in a market where even heavyweight firms are carving out dedicated seed pools. Sequoia recently assembled a $200 million seed fund, while Uncork Capital announced a $225 million seed fund—both signaling that the fight for the earliest, most differentiated deals has intensified.
For founders, the arrival of larger seed funds has two practical implications. First, well-capitalized leads can underwrite capital-intensive plans from day one—think AI infrastructure or complex go-to-market in regulated industries—without over-reliance on bridge rounds. Second, competition at seed raises the bar for narrative clarity, traction, and technical depth. Data from sources like PitchBook and Cambridge Associates suggest that disciplined ownership targets and ongoing support correlate with better outcomes at this stage, a pattern bigger seed funds are built to pursue.
What Founders Can Expect from Primary’s New Fund V
With Fund V, expect Primary to pursue lead positions, help craft early customer pipelines, and plug teams into specialist networks across AI, security, and healthcare. The firm’s national remit may benefit founders outside traditional hubs, offering speed to term sheets and post-close resources that match the complexity of today’s seed plans.
The flip side: larger funds typically target meaningful ownership and set crisp milestones before follow-ons. For the strongest teams—especially those building AI-native products or infrastructure—the trade-off can be worthwhile, exchanging dilution for sharper support and the ability to keep scaling without fundraising detours.
In a seed market still recalibrating from the last cycle yet energized by AI, Primary’s $625 million Fund V is a clear signal: the earliest stage remains a battleground, and the firms willing to bring deep capital and deep specialization to seed are positioning themselves for the next cohort of category leaders.
