We recently sat down for a candid and insightful conversation with Jenn Summe, Director of Primordial Ventures. Jenn shared her experiences as an early-stage investor in Durham, focusing on pre-seed and seed-stage startups. The conversation covered everything from the intricacies of building a rolling fund to how she views the region's startup ecosystem. Read on below for an engaging exploration of venture capital and startup growth in the Triangle regions.
Backing Triangle-Based Businesses:
Primordial Ventures is a venture fund that exclusively backs Triangle-based tech startups. While their portfolio leans heavily toward software, they’ve also supported a hardware company. They write angel-sized checks, typically ranging from $50,000 to $100,000, and have a rolling fund on AngelList.
One of the unique aspects of Primordial Ventures is their focus on keeping investments hyper-local. Their investors want their dollars put to work in their own backyard, supporting local entrepreneurs and nurturing relationships. This localized investment strategy helps strengthen the Triangle’s startup ecosystem, offering early-stage startups the capital and mentorship they need to thrive.
Primordial initially explored different investment models, from angel networks to syndicates, and ultimately settled on a rolling fund model, thanks to insights from Scott Wingo of the Triangle Tweener Fund. Scott was instrumental in showing them the ropes on AngelList, and it became clear that this platform was a great fit for Primordial.
The State of the Triangle’s Ecosystem:
When asked about the current state of the Triangle’s entrepreneurial ecosystem, Jenn paints a positive picture but acknowledges the challenges some founders face. “We have all the makings of a thriving ecosystem: world-class research institutions, big-name companies, talented people, and even more venture capital than I realized when I first stepped into this role,” she says. However, she admits that finding resources can sometimes be difficult, pointing out that there isn't a single, organized hub for entrepreneurs to access everything they need.
The conversation shifts to the topic of a much-discussed "ecosystem map" that is being developed to help founders navigate available resources. This project, initiated by Resilient Ventures, aims to map out the Triangle’s ecosystem more comprehensively. While many startups and investors alike see great potential in this map, the question remains: how will it be activated and utilized effectively?
Challenges and Opportunities in the Triangle Ecosystem:
Throughout the conversation, Jenn addressed several common challenges in the ecosystem, such as capital efficiency for early-stage companies, the importance of mentorship, and the need for collaborative support structures. She also highlighted the value of having local resources like co-working spaces that offer entrepreneurs flexibility without the overhead of long-term office leases. “There’s so much value in getting your founding team together in person, working out of a flexible space where you can build credibility,” said Jenn.
Nick, Eric and Jenn also discussed the idea of how certain parts of the ecosystem, like mentorship, can sometimes feel predatory. Jenn felt that while there are some genuine mentorship opportunities, there are also individuals offering mentorship as a business service, sometimes requiring equity in exchange for little value.
On Pre-Seed Investment and Founder Pay:
When dealing with pre-seed investments, Jenn explained how Primordial evaluates companies that have raised little to no capital. In fact, many of their portfolio companies are pre-revenue. “We see a lot of companies at the pre-seed stage with just a few employees and perhaps a couple of part-time contractors. We invest in these companies when they are raising small amounts—often between $250K and $500K,” she explained.
A critical question founders frequently ask is how much they should pay themselves at this early stage. Jenn emphasized the importance of keeping founder salaries modest. “Most founders at the pre-seed stage should pay themselves enough to get by—covering rent or a mortgage. Anything beyond that, like a six-figure salary, would be a red flag. Founders should be putting as much money as possible back into the business.”
Conclusion:
Jenn Summe's insight into the Triangle’s entrepreneurial ecosystem provides a clear picture of both its strengths and areas for improvement. With more collaboration between local startups, investors, and support organizations, and with tools like the ecosystem map on the horizon, the Triangle is positioned for significant growth. As Jenne sums it up, “We’re all working together here. It’s not a competitive environment, it’s collaborative—and that’s what makes this place special.” Listen to the full podcast and subscribe to Smashing Boxes’ newsletter to get more interviews delivered to your inbox.
