No Red Lights

No Red Lights Plot Summary

Introduction

Alan Patricof's journey through the world of venture capital feels like watching the evolution of modern business itself. From humble beginnings as the son of immigrants to becoming one of the most influential figures in American finance, Patricof has lived a life defined by an uncanny ability to spot the next big thing before others could even see it coming. His fingerprints can be found on investments spanning from Apple and AOL to FedEx and Venmo, shaping industries that transformed how we live, work, and communicate. What makes Patricof's story particularly compelling is not just his remarkable business acumen, but his refusal to slow down even in his late eighties. While many of his peers retired decades ago, Patricof continues to reinvent himself and launch new ventures with the energy of someone a third his age. Through his experiences, we witness not only the birth of venture capital as we know it today, but also timeless lessons about building relationships, maintaining integrity in business, and the importance of never standing still. His philosophy of "no red lights" - refusing to stop for obstacles that would deter others - offers invaluable wisdom for entrepreneurs and investors alike in navigating the unpredictable roads of business and life.

Chapter 1: Early Years: Foundations of an Investor

Alan Patricof's story begins with his parents, both immigrants who arrived in America seeking opportunity. His father Martin came to the United States in 1907 as a four-year-old orphan from Ukraine, walking with his siblings to Antwerp before traveling steerage class to Ellis Island. After being adopted in Ohio, Martin eventually made his way to New York during the Great Depression, where he worked in the "remnants" business before becoming a stockbroker at Gruntal & Co. Patricof's mother Dorine, who immigrated from what is now Belarus, brought an aspirational quality to the family, always concerned with appearances and moving up in the world. Growing up on the Upper West Side of Manhattan, young Alan experienced a childhood that instilled both ambition and practicality. While his mother pushed for education and status, arranging for him to attend the prestigious Horace Mann School, his father emphasized work and survival above all else. This dual influence created in Patricof a unique combination of traits: the scrappy entrepreneurial drive to succeed and the social polish to move comfortably among New York's elite. As a child, he treated Central Park like his backyard, playing stickball in the streets and forming connections with neighborhood friends that would later prove valuable in business. By the time he reached college age, Patricof had developed a clear interest in finance. Though initially rejected from Princeton, he eventually attended Ohio State University, where he majored in finance and began displaying his entrepreneurial instincts. He created a small business selling fraternity "favors" - pins, scarves, and keychains imprinted with fraternity logos - which he successfully sold to an underclassman upon graduation. More importantly, he juggled multiple jobs while maintaining his studies, writing for a local newspaper, conducting consumer research, and delivering telegrams - experiences that gave him a taste for varied work and self-reliance. After graduating in an accelerated three-year program, Patricof returned to New York in 1955 determined to break into Wall Street. With characteristic persistence, he spent months going building to building along Wall Street, starting at the bottom of each and working his way up floor by floor asking for job openings. Finally, he landed a position as a securities analyst trainee at Naess & Thomas, a prestigious investment advisory firm managing portfolios for high-net-worth clients. There, under the mentorship of Ragnar Naess, he learned the principles of value investing that would later form the foundation of his approach to venture capital. During these formative years, Patricof began developing the traits that would define his career: curiosity about new ideas, disciplined analysis of business fundamentals, and a knack for building relationships. He attended the New York Society of Securities Analysts luncheons to hear CEOs present their quarterly results, and made connections with rising stars of Wall Street. Despite his junior status, he began making small personal investments in the market and developed a reputation for thoroughness and integrity that would serve him well in the decades to come. These early experiences laid crucial groundwork for Patricof's future. While working at Naess & Thomas, he pursued a master's degree at Columbia Business School with the firm's support, further solidifying his understanding of finance. Yet even as he absorbed the traditional investment principles of Wall Street, Patricof was developing an interest in smaller, innovative companies that fell outside the usual investment criteria - a curiosity that would eventually lead him to pioneer a new approach to financing early-stage businesses and help create what we now know as venture capital.

Chapter 2: Building the First Venture: From Wall Street to APA

The transition from traditional Wall Street analyst to venture capital pioneer wasn't immediate for Patricof. After stints at Lambert & Co. and Central National Corporation (CNC), where he gained experience evaluating private companies, Patricof began to see a gap in the market. Family offices and wealthy individuals had no systematic way to identify and manage investments in promising private businesses. This insight led him to establish Alan Patricof Associates (APA) on January 1, 1970, with a modest $2.5 million fund raised from fifteen friends and investors who trusted his judgment. The early years of APA demanded creative thinking and flexibility. Venture capital wasn't yet an established industry - it was more like an activity practiced by a few scattered firms. Without today's infrastructure of incubators, accelerators, and angel networks, finding promising companies was truly a hunt. One of APA's first investments came when Patricof met Larry Saper, who was developing a lightweight cardioscope for producing synchronized ECGs to track patients' heart rates. The resulting company, Datascope, revolutionized cardiac monitoring technology and eventually went public, becoming one of the most successful investments in Patricof's first fund. Another early success came with Revere Smelting and Refining (RSR), led by a scrappy entrepreneur named Howard Meyers who wanted to buy a lead smelting plant in Newark, New Jersey. Patricof recognized Meyers' deep understanding of the metals business and his vision for recycled metals, which would prove prescient as environmental regulations evolved. RSR expanded rapidly, acquiring plants across the U.S. and eventually globally, growing into what is now believed to be the largest producer of refined lead in the world. What distinguished Patricof's approach from the beginning was his focus on the people behind the business. "Bet on the jockey, not the horse" became his mantra - investing in entrepreneurs who demonstrated the mental agility to pivot when necessary and the knowledge to build profitable businesses in their chosen sectors. This philosophy also extended to his own firm, where he hired Patricia Cloherty, now recognized as the first woman venture capitalist, despite her lack of investment experience. Her intelligence and drive convinced Patricof she would learn quickly, which she did, becoming a full partner within a year. The 1970s brought both challenges and opportunities. When the stock market crashed early in the decade, the team at APA had to be creative to keep the lights on. Patricof formed a small M&A and private placement boutique, Patricof & Co., to generate fee income during slow times. He also created a Small Business Investment Company (SBIC) fund, 53rd Street Ventures, to access government loans for small business investment. These parallel activities sustained the firm through difficult economic times while building a reputation that would serve them well when the markets improved. By the late 1970s, APA was positioned to capitalize on the coming technology revolution. A phone call from Tommy Unterberg, a well-connected banker, led to Patricof's investment in Apple Computer in 1979 - purchasing 30,000 shares at $10.50 per share. When Apple went public in 1980, APA's shares were worth $6 million, twenty times what they paid. This early success with Apple foreshadowed the firm's ability to identify promising technology companies before they became household names, a skill that would define Patricof's career and establish him as a pioneer in an industry that barely existed when he first hung his shingle.

Chapter 3: Global Expansion: Creating an Investment Empire

In 1975, Patricof's chance meeting with Ronald Cohen, an Egyptian-born, UK-raised Oxford and Harvard Business School graduate, marked the beginning of what would become a global venture capital powerhouse. The two ambitious financiers recognized a kindred spirit in each other and quickly formed a partnership that would bring venture capital to Europe. With little appetite for startup investing in Europe at the time, their vision was considered radical - entrepreneurs there preferred secure corporate jobs with cars and drivers to the uncertain rewards of launching a new business. The partnership began with a simple arrangement: Patricof's investment banking business, Patricof & Co. Capital, was rebranded as MMG/Patricof in the US, while Cohen's Multinational Management Group offices in London and Paris added Alan Patricof Associates plaques to their doors. Each office would carry its costs and have exclusive rights to deals in its market, splitting fees on international transactions. As their collaboration strengthened, they raised the first venture funds in the UK in 1981 (£10 million) and France in 1982 (100 million francs) - pioneering efforts that required persistence and creativity to overcome local skepticism. Finding viable startups in Europe proved challenging. Early investments included Motomop, a self-propelled vehicle with a sponge roller to absorb liquid from cricket fields and golf courses, and PPL Therapeutics in Scotland, the company that cloned Dolly the sheep. While these initial ventures had mixed results, they laid the groundwork for later successes like Computacenter, a B2B provider of PC systems; Ginger Media; and perhaps most notably, Autonomy, which would become the UK's largest enterprise software firm and first £1 billion stock issue. The expansion continued beyond Europe in the late 1980s when the investment banking business merged with a Swiss firm called Corporate Finance Partners (CFP). This addition created a third leg of the European stool, leading to offices in Munich, Madrid, Milan, and eventually a Japanese joint venture. At the same time, APA in the US continued to evolve, bringing on specialized talent like Robert Chefitz to focus on consolidating fragmented service industries and John Megrue for leveraged buyouts - expanding beyond early-stage investing into larger and later-stage investments. Throughout this period of growth, Patricof maintained his interest in innovative technology companies. The firm invested in Federal Express as early as 1972 after meeting founder Fred Smith, though they passed on the initial round due to capital concerns and instead participated in the IPO. They backed Network Analysis Corporation, which designed the expanding ARPAnet (precursor to the internet), and Periphonics Corp., a pioneer in human-simulated voice software for call centers. This diverse portfolio reflected Patricof's broad vision and his ability to spot transformative technologies across multiple sectors. By the 1990s, the partnership between Patricof and Cohen had created a truly global venture capital and private equity firm with offices across three continents. After significant growth and international expansion, they merged their various investment banking and venture capital operations under the name Apax Partners - adding an X to APA for "cross border." This evolution positioned the firm to capitalize on emerging opportunities in technology, healthcare, and media, with the flexibility to invest across stages from early venture to large buyouts. Patricof's instinct for identifying promising entrepreneurs and Cohen's strategic vision for global expansion had together created an investment empire that would continue to shape markets worldwide.

Chapter 4: The Reinvention: Launching Greycroft at 70

In 2001, after more than three decades building Apax Partners into a global investment powerhouse, Alan Patricof faced a pivotal moment. The firm had steadily shifted away from early-stage venture investing toward larger private equity deals - a natural evolution given its growing fund size and the changing market dynamics after the dot-com crash. While financially rewarding, this transition left Patricof feeling unmoored. "I was bored," he admits frankly. The operational minutiae of running a large organization had replaced the excitement of discovering and nurturing innovative startups. At an age when most executives would be planning their retirement, Patricof instead began contemplating a fresh start. The years between 2001 and 2004 were relatively quiet for venture investing, giving Patricof time to explore other interests including politics, international development, and philanthropy. However, by 2005, the winds began to change. New digital media companies were emerging, and Patricof found himself increasingly intrigued by their potential. When he reached out to Rafat Ali, founder of the digital media blog PaidContent, and Steve Ellis, creator of music licensing business Pump Audio, Patricof wasn't representing Apax - he was testing the waters for something entirely new. In October 2005, at the age of 71, Patricof took the extraordinary step of founding Greycroft, named after his house in East Hampton. His fundraising approach was characteristically straightforward - a simple letter to high-net-worth individuals explaining his new venture. From the outset, he established ground rules that would differentiate Greycroft from other firms: raising small funds to stay focused on early-stage companies; not requiring a minimum percentage ownership; concentrating on internet and mobile-delivered products; always including co-investors; and requiring only a board observer role rather than a board seat. To build his new firm, Patricof recruited two talented partners: Dana Settle, a Harvard Business School graduate who had spent five years at Mayfield Partners in San Francisco, and Ian Sigalow, a recent Columbia Business School graduate whom Patricof met through his connections at the university. Though Patricof had initially envisioned a New York-focused operation, circumstances made Greycroft bicoastal from the beginning when Dana couldn't relocate from Los Angeles. This happy accident positioned the firm to capitalize on opportunities across both major U.S. tech hubs. Greycroft's first investments reflected Patricof's intuition for spotting promising digital businesses. PaidContent was acquired by The Guardian within two years, and Pump Audio was purchased by Getty Images for $42 million just fourteen months after Greycroft's investment. These early successes generated momentum, and the firm quickly established itself with investments in companies like The Huffington Post, Maker Studios, Venmo, and Axios. While many of Greycroft's highest-profile investments were in media companies, reflecting Patricof's background, the firm's portfolio soon expanded to include e-commerce, fintech, and other high-tech sectors. What makes Patricof's reinvention at Greycroft remarkable is not just that he started anew at an age when most peers had long retired, but that he did so with the energy and enthusiasm of someone decades younger. He became a regular presence at tech meetups and conferences, often the oldest person in the room by decades yet fully engaged with the latest innovations. This refusal to slow down or rest on past accomplishments embodied the firm's ethos and helped establish Greycroft as a serious player in venture capital, growing from an initial $75 million fund to multiple billions in assets under management within fifteen years.

Chapter 5: Beyond Business: Politics, Philanthropy and Personal Life

While building his business empire, Patricof maintained a parallel life of political engagement and philanthropic work that reflected his commitment to making a broader impact. His entry into Democratic politics began meaningfully in 1988 when he met Arkansas Governor Bill Clinton at a gathering hosted by Washington lobbyist Liz Robbins in East Hampton. The two connected during a morning jog, discussing the South Shore Bank in Chicago and its work alleviating poverty. When Clinton decided to run for president in 1991, Patricof and his wife Susan hosted a dinner party at their Manhattan home, introducing him to potential supporters like George Soros and Leonard Lauder. Patricof's support for Clinton extended beyond fundraising. He formed "Entrepreneurs for Clinton-Gore" with Glenn Hutchins and Nancy Rubin to enlist business owners as campaign supporters. The group developed small-business-friendly policy recommendations, including what became Section 1202 of the tax code establishing "Qualified Small Business Stock," which provides tax incentives for investing in small businesses. After Clinton's election, Patricof served as chairman of the White House Commission on Small Business, reviving a long-dormant body to gather input from small business owners across the country. His political activities continued with support for Hillary Clinton's Senate and presidential campaigns, Chuck Schumer's congressional races, and in 2019, Joe Biden's presidential bid. Unlike many who enter politics through fundraising hoping for ambassadorships or government posts, Patricof asked for nothing and received nothing beyond opportunities to contribute his expertise. He was content to support candidates whose values aligned with his own and to advocate for policies that would encourage entrepreneurship and economic development. In parallel with his political activities, Patricof committed significant time to nonprofit work in international development. After joining the boards of Trickle Up and TechnoServe in 2001, he traveled extensively to countries including Mali, Mozambique, Uganda, and Kenya to observe firsthand how these organizations were supporting small businesses in impoverished communities. He later worked pro bono with the International Finance Corporation (IFC) to improve their programs for small and medium-sized enterprises, bringing his venture capital expertise to help develop more effective funding mechanisms for entrepreneurs in developing countries. This work sometimes led to unexpected opportunities, such as when Nigerian President Olusegun Obasanjo invited Patricof to join his Presidential Advisory Council after Patricof had candidly described the challenges he encountered during a visit to Lagos. For several years, Patricof participated in biannual meetings with the president and his cabinet, providing input on economic development and business climate improvements. These experiences reinforced his belief in the power of entrepreneurship to create positive change in communities worldwide. Throughout these professional and civic pursuits, Patricof maintained a rich personal life centered on his family. After his first marriage ended, he met and married Susan in 1967, forming a partnership that would last more than fifty years until her death in 2021. Together they raised three sons - Mark (from his first marriage), Jonathan, and Jamie - who developed their own successful careers in finance, sports business, and film production respectively. Despite the potential complications of a blended family, Patricof takes particular pride in having fostered a cohesive family unit where all members treat each other with genuine respect and affection. This family cohesion, achieved through consistent effort, gave both Alan and Susan a profound sense of accomplishment beyond their professional achievements.

Chapter 6: The Third Act: Primetime Partners and Aging Revolution

At an age when most people would be celebrating decades of retirement, Alan Patricof launched yet another entrepreneurial venture at 85 - this time focused on the fastest-growing demographic in America: older adults. The idea for Primetime Partners began germinating in 2018 as Patricof was transitioning to Chairman Emeritus at Greycroft. While many factors influenced this new direction, his personal experience with his wife Susan's decade-long battle with Alzheimer's disease provided a catalyst for thinking more deeply about aging and the different needs that arise later in life. Patricof's research revealed compelling statistics: according to the U.S. Census, by 2034 there would be 77 million Americans over age 65, surpassing the under-18 population for the first time in history. Yet despite controlling significant wealth and experiencing unique challenges, this growing demographic remained dramatically underserved by entrepreneurs and investors. Even more surprising to Patricof was discovering academic research showing that the likelihood of entrepreneurial success actually increases with age, with the most successful startups founded by entrepreneurs in their mid-forties and beyond - directly contradicting Silicon Valley's youth-obsessed mythology. In 2020, Patricof partnered with Abby Levy, the former founding president of Thrive Global, to launch Primetime Partners. The firm created a ten-year fund dedicated exclusively to businesses serving the over-sixty market and supporting older entrepreneurs. Within eighteen months, they had reviewed over 700 investment opportunities and invested in twenty early-stage companies, including e-commerce platforms for seniors, training and entertainment content for those aging at home, specialized telemedicine for senior living facilities, and financial services alternatives to reverse mortgages. This third act of Patricof's career carries special significance, as he himself serves as a living testament to the capabilities of older individuals. Still vibrant and engaged in his late eighties, he maintains a rigorous physical regimen including working with a personal trainer three times weekly and regular bike rides. His mental acuity and enthusiasm for new ventures remain undiminished, allowing him to relate authentically to both the entrepreneurs he funds and the consumers their products aim to serve. As he often jokes, "I'm determined to live to 114!" - a goal inspired by a gerontologist who explained that the human body, absent major illnesses, can last well past a century. What makes Patricof's approach to aging particularly noteworthy is his refusal to focus primarily on illness or decline. Instead, he sees enormous potential in products and services that enhance the quality of life for healthy, active older adults. He recognizes that many people reaching traditional retirement age still possess significant energy, expertise, and desire to contribute meaningfully. By creating a fund specifically dedicated to supporting ventures in this space, Patricof is not only opening new investment opportunities but also challenging persistent ageism in both the business world and society at large. The launching of Primetime Partners represents the culmination of Patricof's career-long pattern of identifying untapped opportunities and creating structures to capitalize on them. Just as he pioneered venture capital when few understood its potential, recognized the value of cellular communications before mobile phones became ubiquitous, and invested early in digital media companies when traditional outlets dominated, he now sees aging as "a virgin field with many white-space opportunities." With the same enthusiasm that has characterized his fifty-year career, Patricof intends to spend at least part of his next twenty-seven years building Primetime Partners into another enduring venture - continuing his journey with no red lights to slow him down.

Summary

Alan Patricof's extraordinary journey embodies his personal philosophy of "no red lights" - the unwavering conviction that obstacles exist to be overcome, not to stop progress. From his humble beginnings as the son of immigrants to becoming a founding father of venture capital, Patricof consistently demonstrated an uncanny ability to spot transformative opportunities before they became obvious to others. His greatest contribution may be the democratization of capital for entrepreneurs, creating pathways for innovative ideas to receive funding and transform industries, economies, and lives. The venture capital ecosystem he helped build has enabled countless innovations that might otherwise have remained unrealized dreams. The most profound lesson from Patricof's life is that age need never limit ambition or impact. By launching a new venture fund at 85 focused on the aging population, he not only identified another untapped market opportunity but also modeled the very philosophy he espouses - that experience and wisdom are invaluable assets in business and life. For entrepreneurs, his story underscores the importance of relationship-building, adaptability, and maintaining unwavering integrity even in high-stakes situations. For investors, he demonstrates that the most successful approach combines rigorous analysis with genuine curiosity and a willingness to take calculated risks on transformative ideas. Anyone seeking to make their mark in business would do well to emulate Patricof's blend of persistence, principle, and perpetual reinvention that has kept him relevant and impactful across seven decades of rapid change.

About Author

Loading...

Alan J. Patricof

Read more