He may have been Des Moines’ most famous philanthropist, donating millions of dollars, but who was John Pappajohn?
The legendary venture capitalist and philanthropist died on April 23, 2023, at the age of 94, at his vacation home in Naples, Florida.
The Mason City native built a fortune worth at least $200 million after founding financial consulting firm Equity Dynamics and venture capital fund Pappajohn Capital Resources. Pappajohn and his late wife, Mary, donated tens of millions of dollars to projects at the University of Iowa, Des Moines and other causes.
Their most visual legacy is the $30 million John and Mary Pappajohn Sculpture Park, but people who knew them said their reach extended far beyond the boardroom.
Here’s what we know about the legendary businessman’s life and legacy:
More:John Pappajohn, Iowa business, arts and philanthropy icon, dies at 94
Who was John Pappajohn?
Pappajohn was born in Greece in 1928. He came to America at the age of 9 months with his mother, Maria, following his father, George, to Mason City. He graduated from Mason City High School, then spent six years earning a degree at the University of Iowa.
Mary Pappajohn died last year.
How did John Pappajohn make his fortune?
Pappajohn got into the insurance business and, after a decade, decided to start his own company, Guardsman Life Insurance, in 1962, traveling the state raising money and building a board of directors.
But Pappajohn, who considered himself a risk-taker, recalled in 2016 that “insurance bored me.” So, seven years after its founding, he sold Guardsman to become a venture capitalist.
At the time, he only had $100,000 to start his venture capital firm, according to the Pappajohn website. His fortune is estimated to be over $200 million.
He started Equity Dynamics, a financial advisory firm, and later founded Pappajohn Capital Resources, a venture capital fund. A self-taught expert in medicine, he has been particularly successful with his investments in medical technology and innovations such as managed care.
He was known for being close to the companies he backed, helping them get on the right track and making sure other investors were paid before taking his own profits, earning him invaluable trust.
“When the day of reckoning comes, your legacy, your reputation will be number one,” he told the Register in 2016.
Ambition to be Iowa’s greatest philanthropist
After Pappajohn amassed his fortune, philanthropy became John and Mary Pappajohn’s greatest love. Speaking of his close friend John Pappajohn, the late David Miller said: “He has ambitions to become the greatest philanthropist this state has ever seen.
A self-described workaholic, Pappajohn continued to work until at least two weeks before his death.
Matt Kinley, founding partner of West Des Moines venture capital firm ManchesterStory, worked for Pappajohn Capital Resources from 1995 to 2017. He told Pappajohn about a deal with which he co-invested in the ManchesterStory fund he just two weeks ago, Kinley said.
Pappajohn managed his investment portfolio “to the hilt,” Kinley said.
“I usually called him to check in and we talked about companies and what was going on in the world. But he called me because he saw a transaction with one of the companies that they all had two invested. He’s the one who works.”
Jeff Flemming, the outgoing director of the Des Moines Art Center, said that when Pappajohn was 90, he told Flemming: “‘I’m still working, so I can give it away.’ »
“So I think leading by example is probably one of the strongest attributes that I can share,” Fleming said.
How much money did John and Mary Pappajohn give?
It’s hard to say, but over several decades John and Mary Pappajohn donated:
- $35 million since 1996 to create entrepreneurship centers at the University of Iowa, Iowa State University, Northern Iowa, Drake University and North Iowa Area Community College.
- At least $30 million to build the 4.4-acre John and Mary Pappajohn Sculpture Park to share their love of modernist sculpture with the people of Des Moines.
- $26.4 million in 2009 to UI to build its biomedical discovery building.
- $3 million to the University of Iowa Hospitals and Clinics in 1989 for a new pavilion.
- $1 million to the University of Iowa Hospitals and Clinics in 1991 for a new clinical cancer center.
- $4 million to the University of Iowa College of Business for a new business building in 1992.
- $5 million for a scholarship fund for disadvantaged and minority students, dedicated in 1997.
- $4 million to start the John and Mary Pappajohn Higher Education Center in Des Moines in 1997.
- At least $5 million to Iowa State University for various causes.
What did the mayor of Des Moines say about the death of John Pappajohn?
On April 26, Des Moines Mayor Frank Cownie praised John and Mary Pappajohn’s “love for Des Moines.”
“The City of Des Moines lost a great friend, a generous benefactor and a beloved member of our community in the passing of John Pappajohn,” Cownie said. “The enormous contribution to Des Moines of the John and Mary Pappajohn Sculpture Park is one of our busiest parks, enjoyed by thousands of visitors each year.”
But the couple’s legacy “goes far beyond their magnificent sculpture park. Their mutual love for Des Moines and Iowa can be seen in dozens of contributions and gifts they have given to communities, hospitals and universities across our state. We will miss them both and forever. grateful and indebted to them.
How did John Pappajohn change entrepreneurship in Iowa?
Pappajohn was recognized as one of the nation’s leading venture capitalists, but he kept his business and home in Iowa. In 1996, when Iowa’s economy was still reeling from the agricultural crisis and its economy, in Pappajohn’s words, was “smaller than whale droppings on the bottom of the ocean,” he funded the creation of five entrepreneurship centers at Iowa universities. While funding a center at the University of Iowa, he gave much more than just his alma mater.
Centers have been established at the UI, Iowa State University, Drake University, Northern Iowa University and North Iowa Area Community College.
The centers and their affiliated programs have helped launch thousands of businesses, and he was still giving them until 2021, donating an additional $10 million.
“Iowa has a lot of talent, a lot of hard-working people, but needed a jump start on the entrepreneurial side, Kinley said. “He exposed people early so they could understand that this can be a career path.”
What do John Papajohn’s friends say about his legacy?
Nowhere is Pappajohn’s legacy more apparent than in the sculpture park. It’s the most visible sign of his legacy, Fleming said.
In doing so, they helped complete the transition of Western Gateway, a once seedy downtown neighborhood, into a symbol of a booming city, a place that has become increasingly attractive to the entrepreneurs Pappajohn has trained and who, in turn, helped him. earn your fortune.
“Their incredible contributions have made it one of the best sculpture parks in the country,” Fleming said. “Everything around it has been renovated. So it’s economically transformed this community, this neighborhood.”
But Pappajohn’s legacy will be felt most in the gifts and words of wisdom he and his wife shared out of the public eye, those who knew him said.
Ultimately, he will likely be best known for his impact on Iowa’s entrepreneurial community and the venture capital industry, Kinley said.
“The people he worked with were affected,” Kinley said. “But there are a lot of branches on that tree. It had an impact on a lot of people.”
Philip Joens covers retail, real estate and RAGBRAI for the Des Moines Register. He can be reached at 515-284-8184, pjoens@registermedia.com or on Twitter @Philip_Joens.
