This from the prominent venture capitalist Alan Patricof, who’s a partner at Greycroft Partners. He and colleague Ian Sigalow will visit Israel to look for companies they could fund. Greycroft Partners has a $130 million war chest exclusively devoted to digital media, which is a hot product in Israeli tech at the moment.
Patricof and Sigalow aren’t looking forward to closing multiple deals however, as they are content for just the deal. The two are expecting to get to know only a single company that needs the extra boost by tapping into New York’s advertisers and content rich clients. Such is the marriage of convenience between Israeli and American tech at the moment, where the former harnesses the resources of the latter in a mutually beneficial relationship that will become closer once the demand for digital media grows.
As usual, a Greycroft investment is often between $500,000 and $5 million dollars, with further additions down the road. Patricof adds that Greycroft assumes the companies who receive their funding will not go public and should possess exits below $100 million. This approach is part of Greycroft’s downsized focus to accommodate the current economic climate. There’s also a past connection that Patricof is rekindling with Israel: As co-founder of private equity firm Apax Partners he visited the country ten years ago and already met with a few budding digital media outfits back then.
What makes Israel attractive to American VCs are its assets: a wealth of human capital, strong ties with China, and a vibrant high tech sector that can synergize with its U.S. counterparts.