Patricof on Success

Alan Patricof is recognized as the father of venture capital in his role as cofounder of Greycroft Partners, Inc. (formerly Patricof & Co. Ventures, Inc., now known as Apax Partners). Patricof started the firm at a time when venture capital was a new concept in financing. Since 1970, he has been instrumental in growing the industry from a base of high-net-worth individuals to an industry with diverse backing.

Patricof has helped start and has provided strategic guidance for the growth of companies such as America Online, Office Depot, Cadence Systems and Apple Computer. He was a founder and chairman of the board of New York magazine, which later acquired the Village Voice  and New West  magazine. Patricof sat down with NY Report managing editor Daria Meoli to discuss how he identifies companies with potential for success.

Daria Meoli: What does it take to turn a good idea into a great business?

Alan Patricof: It’s not the venture capitalists; it’s the entrepreneurs that turn a good idea into a great business. It starts with management. Ideas are a dime a dozen, so it takes a really talented individual or a group of individuals to turn that idea into a business model. To do that, entrepreneurs need to really address the market potential, or the size of the market they’re specifically going after, and their competition. They need to understand the unique competitive advantage they bring to that particular project, and then they need to assemble a team that’s capable of implementing the idea.

DM: What characteristics do successful entrepreneurs share?

AP: I don’t know if there’s one common characteristic, but a successful entrepreneur is someone who pays meticulous attention to details. It’s someone who not only comes up with an idea but has the skills that are required to implement that idea, and who has that determination — in the face of all odds against them — to persevere. I think a successful entrepreneur also has to be a good motivator of people.