New Technologies 'Surge' Beyond Silicon Valley: Venture Capitalist
The "entrepreneurial surge" in new technologies is taking place all over the country, Alan Patricof, founder and managing director of Greycoft Partners, a media venture capitalist firm and one of the original investors in Apple , told CNBC Tuesday.
"You can go anyplace in the country and there's a fervor that's just exhilarating," Patricof said.
"Before that Silicon Valley was it. Today it's Silicon Valley; as you know Groupon is in Chicago; you have all this activity in New York—companies like Gilt Groupe. There incubators in Austin and there incubators in Minneapolis," he added.
Patricof went on to say there is only a limited amount of companies that can go public today because "you have to have a market cap of at least $250 million dollars."
"I could tell you the 10 or 15 companies that could go and then it would fall off a cliff because there aren't 100 sitting behind them. These are companies that happen to be all consumer related that have had marvelous experience, and we know LinkedInis one of them and Groupon is another, and Zynga, etc...," he explained.
Lastly with this uptick in e-commerce, companies need to find a way to "monetize" on the web and can't just depend on advertising, added Patricof.
But, one area that hasn't succeeded is subscription. "We have an investment in a company called Pulse—it's a newsreader on the iPad, iPhone, on the Android devices—it started out charging $1.99 last year and they signed up 3- or 4- hundred thousand people at that price ... they converted it to free and they now have almosr 4 million," he concluded.
Follow Strategy Session on Twitter: @CNBCStrategy
Watch CNBC's "The Strategy Session" weekdays at Noon ET.