TL;DR - Georges Doriot founded venture capital firm ARD following WWII, in a watershed moment for the VC industry.
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Tags - notable investors, early vc, regulation
- Who was Georges Doriot?
- How did he shape the development of VC?
- Georges Doriot founded the first public venture capital firm, American Research and Development (ARD), following World War II.
- Prior to that, most investment capital came from families rather than institutions.
- Doriot and others felt that the current economy and investment structures were too “riskless.”
- Doriot was an advisor to many companies while professor at HBS before starting ARD.
- VC was new enough in 1946 that ARD’s founders had to reshape financial regulations before it could properly function.
- Exemptions from the Investment Company Act of 1940 and the SEC.
- World War II was also a surprising catalyst for entrepreneurship (Doriot was a general during the war).
- War showed the benefits of taking risks on new technologies (e.g. rubber).
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