Doing a successful GP led secondary in Venture Capital, Why seed funds can scale, and what a good VC platform team looks like

Venture Unlocked: The playbook for venture capital managers

Follow me @samirkaji for my thoughts on the venture market, with a focus on the continued evolution of the VC landscape.

In this episode, we are thrilled to be joined by Ben Sun, co-founder of Primary, a seed-stage fund based in New York. Ben shares his journey from investment banking to startup founder, and eventually to co-founding Primary, which has backed companies like Coupang and Jet.

Ben provides deep insights into venture math and the intricacies of completing a GP-led secondary. He discusses his background and the inspiration behind starting Primary in 2015. Ben talks about the challenges he faced as a founder and the importance of truly understanding the business as a VC. He explains Primary's hands-on approach, emphasizing the need for a high seed-to-A graduation rate and how their impact team supports portfolio companies.

The conversation covers the metrics used to measure success and the importance of waiting for the right investment opportunities. Ben explores the changing landscape of venture capital, strategies for finding alpha and generating returns, and the importance of sector specialization and deep sector expertise. He also touches on deal flow challenges at the seed stage and the role of incubations in lowering the cost basis.

So many great nuggets in this episode, enjoy!

About Ben Sun:Ben is a Co-Founder and General Partner at Primary. Forbes' Midas List ranks him as one of the top 100 tech investors in the world. His founder-first approach originates from having been one: His experiences cofounding Community Connect, one of the first social networking companies, and LaunchTime, an incubator, inform how he supports founders in the portfolio.

Ben focuses his investing activities on primarily consumer-facing companies. Ben has been active in the NYC tech community for over 20 years. Prior to becoming an entrepreneur and investor, Ben worked at Merrill Lynch in the Technology Investment Banking Group, but he really began his career at the age of eight when he worked in his parents’ Chinese restaurant.

In this episode, we discuss:

(01:21) Journey from investment banking to founding Primary Ventures.

(03:45) Starting Primary Ventures and focusing on seed-stage investments in New York.

(04:12) Emphasis on being hands-on and aligning with founders.

(06:34) Roles and functions of the impact team at Primary Ventures.

(10:00) Measuring success through surveys and key performance indicators

(13:23) The importance of choosing the right investment opportunities and achieving high graduation rates from seed to series A

(22:00) How partners wait for the right pitch using an internal rubric

(26:57) Benefits of sector specialization, with a focus on fintech expertise

(35:00) Strategies for maintaining a low-cost basis and navigating market fluctuations, including secondary sales

(41:00) GP-led secondaries and benefits of providing liquidity to limited partners

(49:00) Advice for new venture capitalists: support founders and develop a long-term strategy

I’d love to know what you took away from this conversation with Lindel. Follow me @SamirKaji and give me your insights and questions with the hashtag #ventureunlocked. If you’d like to be considered as a guest or have someone you’d like to hear from (GP or LP), drop me a direct message on Twitter.

Podcast Production support provided by Agent Bee

This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit ventureunlocked.substack.com