More evidence that institutions aren’t just cutting back on their allocation to venture capital, but backing away altogether:
"When I started Greycroft in 2006, I raised $75 million, all from high-net-worth individuals, and I did it in four weeks with a letter," said Alan Patricof, founder and managing director of Greycroft Partners LLC, which expects soon to close its second fund, reportedly in the range of $125 million.
"Anyone who sent back the form filled out was in the fund, and I never made a call," said Patricof, speaking on a panel Tuesday about the VC industry in transition at the OnMedia NYC 2010 conference in New York.
"A year ago when we started raising our second fund, which is somewhat bigger, we wanted an institutional base," Patricof said. "We went out for six months and didn’t get a single response. Then we went back to our original investors, sent out a letter again, and four weeks later we raised a lot of money with just a letter and no phone calls. The individual investor market is a great market."