TL;DR - DEC’s enormous success thanks to ARD’s investment completely altered the trajectory of the venture capital industry.
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Tags - DEC, ARD, Doriot, venture capital, computer, technology startup, IBM, equity
- What was DEC?
- Why did DEC have such a lasting impact on the VC industry?
- Digital Equipment Corporation was founded by Kenneth Olson and Harlan Anderson.
- DEC aimed to produce smaller, less expensive transistor-based computer machines for business applications.
- Olson wanted to show that computers were practical, inexpensive and reliable.
- ARD offered a deal for $70,000 for 70% of the company.
- DEC reigned as the second largest computer company in the world after IBM and the dominant player in the minicomputer industry.
- DEC’s success inspired more computer startups, as well as an enormous change in attitudes toward venture capital investing.
- ARD founder Doriot saw the DEC investment as a tool for massive economic and technological change.
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