Primary Ventures’s Past Success and Business Approach
Primary Ventures has slowly begun to establish itself as one of the best investing companies in the New York area over the last few years by taking a slower approach than many others. By maintaining a low volume of investors and limiting their practice to just the New York area, the company has helped startups of all kinds reach high levels of success. In fact, due to the more methodical and hands-on business approach, the company maintains it has led to an 85% Series A success rate in its portfolio of startups. This figure is double the success rate of the industry average, proving that what the company does works.
In the first fund raised by the company, Primary Ventures invested in a series of startups that are already finding incredible success in their industries. In fact, fitness startup Mirror was acquired by Lululemon for $500 million, while smart home and security business Latch plans to go public at a valuation of $1.5 billion. Health tech business K Health is also valued at $1.5 billion after their latest funding round. Primary Ventures backed all of these startups in their early phases of development, and their current successes show off the strength of the investing company itself.
Primary Ventures’s Current Fund and Plans
The investing company recently raised $200 million for the newest round of startup funding. $150 million will be used to invest in early development startups as usual, while $50 million will be put aside for investment in later-stage funding rounds. The company plans to take the same measured approach as with all other funds they have done so far. They plan to invest in 8 to 10 different startups in early seed or pre-seed stages, allocating enough to lead the round, only investing in businesses they believe to have a valuable product or platform, and only investing in startups in the New York area.
When commenting on the business pool of New York and why investing there is such a priority, General Partner and co-founder of Primary Venture Partners, Brad Svrluga, said, “Unlike the Bay Area, New York is powered by a whole collection of industries. That diversity makes the place radically more resilient.”
About the Author
Tom Price is a writer focusing on entertainment and sports features. He has a degree from NYU in English with a minor in Creative Writing. He has been previously published for Washington Square News, Dignitas, CBR, and Numbers on the Boards.