While startups are popping up everywhere, it is hard for angel investors or smaller private equity funds to keep up.
One solution could be to loosen or change restrictions on IPOs to allow investors to get in on the action earlier. But that might cause problems of its own.
"We have had a plethora of startups in this country, in every city, we have many more than our share in New York, a lot of these people I think should probably get jobs instead of starting the next company that duplicates something else," said Patricof.
"But there aren't many of us who are doing A Rounds. There aren't enough of us to possibly support all these startups that have taken place so it's going to be survival of the fittest."
Watch below to see the rest:
Produced by Business Insider Video
More From Business Insider