Primary Ventures raises healthy $625M Fund V to focus on seed investing

Core Insights - Primary Ventures has closed a $625 million Fund V focused on seed investing, indicating a significant increase in early-stage round sizes, particularly in the AI sector [1] - The average check size for Fund V will range from $5 million to $10 million, with plans to invest in 40 to 50 companies over three years, including pre-seed investments [2] - The firm has expanded its investment geography beyond New York, now including cities like Chicago, Seattle, Virginia, and D.C., reflecting a broader talent pool and startup ecosystem [3] Investment Strategy - Primary Ventures identifies as a generalist but has sector specialists focusing on areas such as consumer, vertical AI, fintech, healthcare, enterprise, cybersecurity, and infrastructure, covering approximately 80% to 90% of seed sector activities [4] - Fund V has already made investments in three companies, continuing a trend of increasing fund sizes from previous funds: $60 million in Fund I, $100 million in Fund II, and $150 million in Fund III [4] - The firm has raised a total of $275 million for its funds and an additional $163 million for an opportunity fund, with notable investments in AI chip company Etched, risk management platform Alloy, women's networking hub Chief, and AI marketplace Dandelion Health [5] Market Context - The rise in seed fund sizes is part of a competitive landscape where firms are vying for high-potential deals, with other firms like Sequoia and Uncork Capital also raising substantial seed funds recently [3]