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Alan Patricof and Howard Morgan represent over a century of venture capital experience. Alan, an early investor in Apple, co-founded Apax Partners ($80B AUM), Greycroft, and Primetime Partners. Howard co-founded Renaissance Technologies and First Round Capital, backing Uber and Roblox. They've witnessed VC transform from begging entrepreneurs to accept checks to evaluating 10,000 deals a year.
In 1970, when Alan Patricof launched his first $2.5 million venture fund, he had to beg entrepreneurs to take his money. His first investment was a lead smelting company that today wouldn't make it past the lobby. Meanwhile, Howard Morgan was beginning a journey that would lead him to co-found Renaissance Technologies, the world's most successful quantitative hedge fund, before diving into venture capital. Together, they've witnessed the complete transformation of an industry. From Alan's early bet on Apple during the PC revolution to Howard's backing of Uber and Roblox, they represent over a century of pattern recognition across every major tech cycle.
In our conversation recorded live at the Newport Global Summit (special thanks to Kitty Cushing!), they share what half a century of backing world-class entrepreneurs has taught them. We discuss how AI is reshaping everything from their own investment process to entire professions, and offer predictions that range from measured to revolutionary, including Howard's forecast of a billion humanoid robots within 15 years transforming how we work and live.
Below I’m including some of the most highlights from our conversation. If you're eager for more, the full discussion awaits:
VCs are "Risk Removers": Beyond Perception and Navigating Crises
The venture capital industry suffers from a fundamental mischaracterization. As Howard Morgan articulates, elite investors are not risk takers but rather sophisticated risk removers, employing rigorous frameworks to systematically eliminate uncertainty. The mathematics are stark: top-tier firms now invest in approximately 1 in 300-500 evaluated opportunities, deploying capital only after exhaustive pattern recognition and market validation confirm venture-scale potential. This disciplined approach stands in stark contrast to public perception. Alan notes that institutional-grade venture investing demands tolerance for significant loss ratios, extended capital cycles, and protracted liquidity timelines. Of the 25+ funds Alan has deployed, several have operated beyond 17 years, nearly double their intended lifecycle, as structural market shifts have fundamentally altered exit dynamics despite robust underlying portfolio performance.
This risk framework wasn't developed in academic isolation but forged through decades of market dislocations. Howard witnessed the 1987-1989 crisis when frozen IPO windows eliminated the primary liquidity mechanism for venture-backed companies, fundamentally restructuring limited partner return expectations. The shift from anticipated distributions within 24 to 36 months to today's decade-plus holding periods would have seemed inconceivable.
Alan's experience during the 1999-2001 technology correction proved equally formative: managing portfolio companies facing weekly existential threats to payroll continuity demanded operational rigor that transcended traditional board governance. These crucibles instilled essential lessons in capital efficiency, organizational resilience, and strategic pivoting that continue to inform their contemporary investment frameworks and value-creation methodologies.
The AI Era: Between Caution and a Vision of a Future with Humanoid Robots
One of the most interesting projections from our conversation was Howard's forecast of hundreds of millions of humanoid robots integrated into daily economic life within 10 to 15 years. This represents a fundamental shift in the physical manifestation of artificial intelligence, moving beyond software applications to autonomous systems capable of performing complex physical tasks across domestic, commercial, and industrial environments. The trajectory extends from current deployments in controlled manufacturing settings to ubiquitous presence in homes for elder care, offices for routine operations, and logistics networks for goods movement.
To me, this raises profound questions about labor market economics and capital allocation strategies. When humanoid robots can perform physical labor continuously at declining marginal costs while AI systems handle cognitive tasks traditionally requiring junior professionals, will we face a fundamental restructuring of workforce dynamics?
The implications could cascade through multiple dimensions: How do societies maintain economic participation when traditional entry points into professions disappear? What happens to human capital development pathways when apprenticeship models become obsolete? How do labor cost structures evolve when physical and cognitive tasks can be executed at near-zero marginal expense? These questions extend beyond individual sector disruptions to challenge core assumptions about economic organization, monetary policy, and the very mechanisms through which individuals participate in value creation within our modern economy.
The Most Cherished Legacy: Beyond Money, Building, and Mentorship
When asked about their proudest achievements, both Alan and Howard deflect from financial returns to emphasize institutional building and human capital development. Howard attributes his success to selecting exceptional partners across four transformative ventures: Renaissance Technologies with Jim Simons, Idealab with Bill Gross, First Round Capital with Josh Kopelman, and B Capital with Eduardo Saverin. This partner selection framework extends beyond professional collaboration to his 58-year partnership with his lovely wife, Eleanor (who was in attendance).
Alan's legacy centers on ecosystem development and mentorship at scale. Having launched over 25 funds across multiple geographies throughout his career, he measures impact not by capital deployed but by entrepreneurs supported, careers launched, and businesses catalyzed. His practice of maintaining accessibility, returning every call, meeting with aspiring entrepreneurs, and providing counsel regardless of immediate commercial benefit, has created a global network of professionals who credit him as foundational to their success. This compounding effect manifests in unexpected ways: decades after initial interactions, individuals approach him to express gratitude for opportunities provided or advice given when others declined engagement.
Beyond professional accomplishment, both maintain serious commitments to longevity research and health optimization. Alan pursues ambitious longevity goals targeting 114 years, while Howard aims for 120, leveraging AI-driven insights to optimize health interventions, analyze behavioral correlations with extended lifespan, and develop evidence-based strategies to mitigate genetic risk factors. This dedication to healthspan extension aligns with their broader investment philosophy: sustainable value creation requires long-term thinking, whether applied to institutional durability, multigenerational talent development, or advancing scientific understanding of human biological potential.
Interviewing Alan Patricof and Howard Morgan on stage at the Newport Global Summit was both a professional privilege and personal milestone. Their decades of experience navigating market cycles, building transformative institutions, and developing multiple generations of entrepreneurs offers a masterclass in sustained value creation.
What resonates most is their continued evolution in an industry constantly being transformed. For anyone in venture capital or entrepreneurship, Alan and Howard's careers exemplify how success compounds through adaptability, resilience, and long-term commitment to building enduring institutions and relationships.
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See you next time,
Miguel
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