Patricof’s Greycoft Raises $130.7 Million Second Digital Media Fund

It took a year, 160 first meetings and a lot of travel time but Greycroft Partners finally has closed its second fund, $130.7 million Greycroft II. It’s a case of second verse, same as the first with plans to continue investing in early-stage digital media companies that deliver products and services online or through a wireless device. The cast is the same, too: founder Alan Patricof, Dana Settle and Drew Lipsher with Ian Sigalow promoted to partner. (They plan to add two investment staffers.) Settle will continue to head the LA office while the others are based in New York. But there are differences: Greycroft raised $75 million from individuals for Greycroft I; the larger new fund includes ten institutional investors, including JP Morgan Investment Advisors.
The goal, Sigalow told paidContent, is to make 40 investments from $500,000 to $5 million during the next four or five years. The first is Lucid Commerce, a Seattle-based analytics company specializing in e-commerce. Lucid is on its second round of funding, raising $1.9 million from Adinvest and OVP Venture Partners late last year. The company raised a $2.5 million first round in 2008. The amount of Greycroft’s investment is unclear but it shouldn’t be less than $500,000 given the fund’s guidelines. Others are in the pipeline but no term sheets. “There’s a lot of activity in the video space, search, media buying and consumer — and a lot of good stuff in New York, Sigalow said. Greycroft II is supposed to invest at least 90 percent in North American companies.
Sigalow doesn’t envy anyone trying to start a VC fund without a track record. “It would be hard. We