Helpfulness - 5
Tags - History of VC, Key players, early days
- Who were the key players in the early days of VC?
- How, why, and when were VC firms created?
- In 1946 the first two venture capital firms American Research and Development Corporation (ARDR) and J.H. Whitney & Company were founded. ARDC is credited with the first major venture capital success story when its 1957 investment of $70,000 in Digital Equipment Corporation (DEC) would be valued at over $355 million after the company's IPO in 1968
- One of the first steps toward a venture capital industry was the passage of the Small Business Investment Act of 1958 which allowed people to help the financing and management of the small entrepreneurial businesses
- Throughout the 1970s, a group of private equity firms, focused primarily on venture capital investments, would become the model for later VC firms
- The public successes of the venture capital industry in the 1970s and early 1980s (e.g., DEC, Apple, Genentech) gave rise to a major proliferation of venture capital investment firms. From just a few dozen firms at the start of the decade, there were over 650 firms by the end of the 1980s, each searching for the next major "home run".
Follow up links:
- What do VC’s do? https://www.investopedia.com/terms/v/venturecapital.asp