Primary Ventures Raises Healthy $625M Fund V To Focus On Seed Investing

Primary Ventures $625M Seed Fund Signals New VC Era

Primary Ventures has closed a $625 million Fund V dedicated exclusively to seed-stage investing—a striking sum for early-stage venture capital that underscores how artificial intelligence is reshaping startup financing. The New York-based firm plans to write checks between $5 million and $10 million across 40 to 50 companies over three years, with investments stretching from pre-seed rounds through Series A. This fund size, once rare for seed specialists, highlights a broader industry shift: seed investing has evolved from a niche strategy into a standalone asset class commanding serious capital.

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Why Seed Funding Just Got a Major Upgrade

Five years ago, a $10 million seed round would have raised eyebrows. Today, it's increasingly standard—especially for AI-native startups requiring substantial compute resources, data licensing, and engineering talent before generating revenue. Primary Ventures co-founder Ben Sun observes that seed-stage companies now tackle problems with enterprise-scale potential from day one. "The potential outcomes are so much bigger than they've ever been," Sun notes, pointing to AI infrastructure demands and global market access that accelerate growth trajectories.

This evolution explains why a $625 million fund focused solely on seed deals isn't an outlier but a strategic necessity. Larger check sizes allow firms to secure meaningful ownership in promising startups while providing runway for 18 to 24 months of development—critical when building complex AI products. Founders benefit from reduced fundraising fatigue and stronger partner commitment during volatile market cycles.

Geographic Expansion Beyond Traditional Hubs

While Primary Ventures built its reputation backing New York startups, Fund V deliberately casts a wider net. The firm now actively invests in Chicago's logistics-tech scene, Seattle's AI research corridors, and Washington D.C.'s government-tech ecosystem. Sun emphasizes that talent distribution has fundamentally shifted: "The talent, the founder, and the startups are happening everywhere."

This nationwide approach reflects deeper market realities. Remote collaboration tools and cloud infrastructure have dissolved geographic barriers to building world-class products. Meanwhile, specialized talent pools—like Virginia's cybersecurity experts or Atlanta's fintech engineers—create fertile ground for category-defining companies outside Silicon Valley. Primary's strategy acknowledges that the next generational AI company might emerge from Minneapolis or Miami rather than Menlo Park.

Sector Specialization Within a Generalist Framework

Though Primary describes itself as a generalist firm, Fund V deploys specialists across high-conviction verticals. Consumer applications remain a priority, but the firm has deepened expertise in vertical AI—industry-specific artificial intelligence transforming healthcare diagnostics, legal workflows, and manufacturing operations. Other focus areas include embedded fintech, cybersecurity for AI systems, and infrastructure supporting next-generation models.

This hybrid model offers founders nuanced advantages. A healthtech startup receives guidance from partners who understand FDA pathways and clinical workflows, while an AI infrastructure team works with investors fluent in GPU economics and model deployment challenges. Sun estimates this approach covers "80% to 90% of seed sector activities," allowing Primary to move quickly when exceptional teams emerge in emerging categories.

The Competitive Landscape Heating Up

Primary isn't operating in isolation. Several top-tier firms have recently launched dedicated seed vehicles, signaling institutional recognition of early-stage alpha. Sequoia Capital deployed a $200 million seed fund, while UnCommon Capital raised $225 million for similar-stage investments. This competition benefits founders through improved terms and more strategic partnership options—but it also intensifies pressure on venture firms to differentiate.

Primary's response centers on operational support beyond capital. The firm provides portfolio companies with dedicated talent partners for engineering and GTM hiring, regulatory navigation resources for regulated industries, and introductions to enterprise pilot customers. In an era where product-market fit requires navigating complex compliance landscapes and enterprise sales cycles, these services often prove more valuable than additional funding alone.

What This Means for Founders Raising Seed Capital

For entrepreneurs preparing seed rounds in 2026, Primary's fund closure signals both opportunity and evolution. First, credible seed rounds now routinely exceed $8 million for AI-driven businesses—particularly those with defensible data moats or proprietary model architectures. Second, geographic location matters less than team composition and problem selection. Founders outside traditional hubs should emphasize domain expertise and early traction rather than apologizing for their ZIP code.

Third, investors increasingly evaluate seed-stage teams on their ability to navigate the "AI stack" holistically—not just model development but data sourcing, cost-efficient inference, and ethical deployment frameworks. Founders who articulate thoughtful positions on these dimensions stand out in crowded deal flow.

The Road Ahead for Early-Stage Investing

Fund V's structure suggests Primary anticipates continued fragmentation in the venture landscape. As growth-stage capital becomes more selective post-2024 corrections, seed investors must back companies with clear paths to $100 million ARR—not just viral user growth. This demands deeper technical diligence and longer partnership horizons.

Sun believes seed-stage specialization will only intensify. "Firms competing for the best founders need to bring more than capital to the table," he explains. "They need sector depth, operational muscle, and conviction to lead rounds when others hesitate." That philosophy underpins Primary's expanded fund size: it's not about writing bigger checks indiscriminately, but about reserving capacity to double down on breakout companies during critical inflection points.

A New Benchmark for Seed-Stage Ambition

The $625 million commitment represents more than financial firepower—it's a statement about confidence in America's innovation pipeline at a pivotal technological inflection point. As AI transitions from experimental novelty to embedded business infrastructure, the companies defining this shift require serious resources at inception. Primary Ventures' Fund V acknowledges that reality while adapting its geographic and sector approach to match where innovation actually occurs today.

For founders, this environment offers unprecedented access to patient capital and specialized guidance during the most fragile phase of company-building. For the ecosystem, it confirms seed investing's arrival as a mature, sophisticated discipline—not a stepping stone to later-stage deals, but a distinct arena where generational companies are increasingly born. In 2026's venture landscape, the seed stage isn't just where journeys begin; it's where trajectories are decisively set.