“Never did the vote we had as a minority investor, which is what all venture people have, make any difference… Why fight for all those things.”
Who said it: Alan Patricof, managing director and founder of Greycroft, an early stage venture capital firm.
In context: In a Privcap video, Patricof, describes why Greycroft doesn’t take a board seat or fight for registration rights. He said that never in his 40 years as an investor did having a minority share vote make any difference. Furthermore, registration rights are irrelevant because most of the companies are acquired rather than go public. It is always interesting to hear a veteran of the PE and VC industries give his views. Patricof was an early backer of companies like Apple Computer, AOL and Cellular Communications. He co-founded Apax Partners, which is now one of the largest PE players in the world. He also talks about Greycrofts focus on digital media startups – “capital efficiency” is the key word for him. He has done mega-deals, mid-market investment, but the venture capital business has never looked better, he says in this interview. The startup and early stage is really where his passion and experience meet. New York and LA are hot for incubators and startups – it’s hard to get a ticket for tech startup meetups, he said.
Where we found it: Privcap video