Aspiring Venture Capitalists Need More Than Book Smarts to Succeed.

Business Editors

NEW YORK--(BUSINESS WIRE)--April 19, 2001

So you want to be a venture capitalist? Well graduates, strap on your seat belts because you will need a lot more than book knowledge to make a name for yourself in today's venture capital industry.

Alan Patricof, chairman and founder of Patricof & Co. Ventures, Inc., told an audience at Harvard University's 2001 Annual Principal Investment Conference, that the demands on today's venture capitalists are constant, hurried and varied. "Being a venture capitalist today requires much more than a proficiency with numbers," he said. "Anyone who dreams of becoming a venture capitalist needs flexibility and the innate talent to quickly adapt to a variety of roles. To help your portfolio companies ride out today's financial roller coaster, you have to be the coach, the parent applauding in the stands, and cheerleading section all rolled into one."

Speaking before the group of would-be venture capitalists, Patricof said that entrepreneurs -- particularly dot.com entrepreneurs - have the right to expect that their venture capitalists will provide added value by helping to guide them to sustained profitability. "More than ever before, portfolio companies require access to their venture capital backers at all times of the day," said Patricof. "However, venture capitalists must recognize they do not run these businesses; rather they must be able to orchestrate communications between board members and management, and work well with people at every level."

Patricof reported that venture capital firms are flush with capital having raised more than $76 billion through the third quarter of 2000, and that opportunities abound in the venture capital community for individuals with good judgment, strong communication skills and intuitive powers. Last year there were over 7,000 venture capitalists working at more than 1,000 venture capital firms, nearly double the number of VCs as recently as 1996.

So what does it take to be a venture capitalist today? Patricof offers the following advice:

- An endless intellectual curiosity for the world around you.

- The ability to live with uncertainty

- A disciplined approach and meticulous attention to detail.

- The ability to recognize transforming technologies that create significant
productivity gains, or what Patricof describes as the "better, faster, cheaper"
theory.

- A willingness to take risks and "pull the trigger" (make decisions)

- Resiliency - even on a bad day - and an inherently optimistic personality
because, he said, "tomorrow will be better!"

Founded in 1969, Patricof & Co. Ventures, Inc. is a leading international private equity investment firm that together with its sister company, Apax Partners, manages over $11 billion on behalf of major institutional investors in the US and abroad. With more than 30 years of direct investing experience, Patricof & Co. has built a solid reputation as an industry leader, and as an innovative, value-added investor. The firm's investment interests range from classic venture capital to later- stage buyouts, and cover a broad range of industries, including information technology and telecommunications, B2B e-commerce, health care and biotechnology, and consumer and retail.

Patricof & Co.