The Original VC and the Man Behind It.

A Short Story of Where Doriot Got an Idea of Professionalising the Fund

The first VC firm was founded in 1946 by Georges Doriot (also a founder of INSEAD, the world’s top business school), a French immigrant who served as a general in the US military. Doriot was inspired by the French whaling industry, where wealthy investors would fund whaling expeditions in exchange for a share of the profits.

Doriot knew that many promising startups were failing because they couldn’t raise the capital they needed. He decided to start a VC firm to provide funding to these startups.

Doriot’s VC firm, American Research and Development Corporation (ARDC), was the first of its kind. ARDC invested in several successful startups, including Digital Equipment Corporation and Texas Instruments. Doriot’s success paved the way for other VC firms to emerge. Today, there are hundreds of VC firms around the world, investing billions of dollars in startups each year.

What does this mean for entrepreneurs today?

While it’s still not easy to raise VC funding, entrepreneurs have more options than ever before. There are now many different types of VCs, each with its focus. There are also several other funding sources available to startups, such as angel investors and crowdfunding platforms.

If you are an entrepreneur seeking VC funding, it is important to do your research and target the right VCs for your business. You should also have a well-thought-out business plan and pitch deck.

And remember, even if you don’t raise VC funding, there are still other ways to fund your startup. Don’t be afraid to get creative.

Prepared by the Argo Advisory Insights Team

Argo Advisory | Published: March 2024