I just got finished interviewing Alan Patricof, as part of the North American Venture Capital Summit here in Quebec City. For the uninitiated, Patricof is a legendary venture capitalist who current manages a New York-based firm called Greycroft Partners. A few quick quotes and takeaways:
* “We no longer invest with the idea of taking our companies public. If they do, it’s an accident.”
* Patricof recently suggested that the attention given Sequoia Capital’s “Graveyard” presentation could become a self-fulfilling prophesy, with a bad situation would be made worse artificially. He stuck by that, but stressed that he gives Sequoia no blame for making the presentation. He added that if firms do lay off, to make the aftermath appear “tight.” For example, not too many empty cubicles or other demoralizing reminders of better times.
* Patricof believes that capital gains rates will be raised next year, and that carried interest will be reclassified as ordinary income (no matter the president, although he’s a former Hillary campaign official who now supports Obama). He also thinks there may be some sort of carve-out for startup investments, which is currently defined as being in companies that have raised less than $50 million.
* He confirmed that Greycroft will return to the fundraising market sometime next year, but that it “won’t raise a dollar more than $150 million.” Its current fund is $75 million.