Greycroft Seeks $175 Million for New Fund

Greycroft LLC, the venture-capital firm co-founded by Alan Patricof, is seeking $175 million for its next early-stage fund that will back digital media companies, according to two people familiar with the situation.

The amount sought by Greycroft Partners III LP tops the $130 million raised by the prior fund in 2010. That fund has an unrealized net asset value of about 1.3 times cost as of June 30, according to one of the people.

Elizabeth Conway, a spokeswoman for Greycroft, declined to comment.

The New York-based firm invests $500,000 to $5 million initially in companies and may double that amount over time, according to the firm’s website.

Greycroft gathered $75 million for its debut fund in 2006, the year of its founding. That same year it invested in Huffington Post, profiting from the sale of the company last year to AOL Inc. for $315 million. In a recent exit, Nielsen in July purchased Greycroft-backed analytics company Vizu. Walt Disney Co. last year purchased portfolio company Babble Media Inc., an online parenting platform.

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