Fred Paulsell, 63; Played Major Role in Costco’s Opening
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Fred Paulsell, 63, a venture capitalist who provided crucial financing and advice in the start-up of Costco Wholesale Corp., died in his sleep Oct. 22 at his home in Seattle.
Born in Spokane, Wash., Paulsell moved to Seattle as a child, served in the Army, and earned bachelor’s and master’s degrees in finance at the University of Chicago.
He began working for Smith Barney, which transferred him to Seattle to open a new office at age 30.
In 1972, he became executive vice president of Foster & Marshall, a local brokerage. That business was sold to Shearson/American Express in 1982, and Paulsell became a co-founder of the venture capital firm Foster Paulsell & Baker in 1985.
In 1982, he met Costco founder and Chairman Jeff Brotman on a flight to Seattle that was struck by lightning and made an emergency landing in San Francisco.
While the plane was grounded for four hours, Brotman talked about opening a chain of low-cost warehouse clubs and Paulsell offered to help raise the money.
Within months, a limited partnership called the Cost Club had raised $7.5 million and the first store was opened in south Seattle in September 1983.
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