Greycroft boosts fund size by 50%

Greycroft Partners, the venture firm founded by Alan Patricof, has upped its inaugural fund size to $75 million, according to a regulatory filing.

The fund had an initial target of about $50 million. But since then, Patricof has hired two partners: Dana Settle, formerly a venture partner with Mayfield Fund, and Drew Lipsher, former head of a division of Universal Music Group. (Settle is in Los Angeles and Lipsher is in New York.) Greycroft makes early stage investments in the new media sector, including wireless, media and entertainment companies. Its investments range in size from $500,000 to $3 million.

The firm participated in five Series A deals in 2006: a $2.5 million round for music software developer Pump Audio in April; a $5 million round for sports social networking site Takkle in July; a $5 million round for political blog Huffington Post in August; a $7.75 million round for outsourced IP phone system provider M5 Networks in September; and a $6.69 million round for BitTorrent company Azureus in November.

Greycroft also participated in a $5 million Series C for instant messaging company Doppelganger in January. It lists digital journalism site Paidcontent.org as a portfolio company, but details for that investment are unavailable.

Patricof is a legendary New York investor who made his mark in 1969 with Alan Patricof Associates. The firm was an early investor in Apple Computer, and in 1987 became the first U.S. venture shop to establish a European affiliate. In 1991, Patricof renamed the U.S. group Patricof & Co. Ventures, while calling his entire international effort Apax Partners.

After Apax moved away from early stage investing in 2005, Patricof decided to strike out on his own, founding Greycroft in March 2006. “I established this fund because we are now at a significant moment in the development of digital media,” he told VCJ at that time. “Digital technology, flexibility and power have been proven, but we have only started to see the range of applications that I am confident will transform the communications and media industries in the next decade.” —Alexander Haislip