Primary Venture Partners raises $100M to invest in NYC startupstechnicalstudio | June 11, 2018 | 0 | Startups
Primary Venture Partners, a seed firm that invests exclusively in New York City startups, has raised a second fund of $100 million.
That focus is unusual — even Lerer Hippeau, a firm that’s closely associated with New York, makes some investments outside the region.
Primary’s Ben Sun (pictured above with his co-founder Brad Svrluga) said he’s betting, in part, on the New York workforce, particularly “the talent that came into the tech ecosystem post-financial crisis” — a shift that gave the city more talented entrepreneurs, plus a talent pool that they could draw from to build their companies.
After all, Sun noted that employment in New York’s tech sector grew by 57 percent between 2010 and 2016.
He also said that Primary (formerly known as High Peaks Venture Partners) offers more support and services than many seed firms — for example, Cat Hernandez, Primary’s partner focused on “human capital,” has been directly involved in hiring nearly 200 employees at the firm’s portfolio companies. Primary is able to offer that level of support with a team of 13 people, Sun said, by leveraging local connections and expertise.
The investment team has also grown, with the addition of Steve Schlafman as venture partner last month — Sun described him as “a super highly networked guy who has a really good nose for talent.” (When we talked to Schlafman prior to today’s announcement, he managed to dodge a question about the firm’s fundraising.)
“With a singular focus on this market, we were able to build an operating and portfolio impact model that provides concentrated, on-site support to our portfolio companies in a way that wouldn’t be possible across geographies,” Svrluga said in an emailed statement. “Raising this second fund not only gives us the capital to continue to be a high-conviction seed round leader, but to continue to expand our Portfolio Impact team so that we can be an even better partner to our founders on their journey from Seed to Series A.
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