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Georges Doriot and the Birth of Venture Capital

For all one knows, venture capital was not a recognized term among the Americans, and the world 50 years ago. As the society progressed throughout the 20th century, we all saw the importance of financing and acquiring a start-up capital for transforming an idea and implementing it in real life.

This book summary offers a look into the Georges Doriot’s business life, and how he managed to help other companies for overcoming this issue.

Who Should Read “Creative Capital”? And Why?

Creative Capital is a not a book for people who are living under the belief of mediocrity. Those who think that life is nothing other than luck perhaps should avoid contact with Ante’s classic.

If you are in some way interested in creating a brand, willing to learn some more about financing, and why banks refuse to give support and assistance in the form of financial patronage to start-ups – you should give this book a chance.

We strongly believe that venture capital, is the thing of the future, and the sooner you realize it, the better.

About Spencer E. Ante

Spencer E. Ante is an award-winning and internationally recognized author. He also works as an editor at BusinessWeek, where he obtained his knowledge related to finance, economy, technology and managing a business. It’s worth mentioning that Spencer is one of the few people who founded the International Academy of DigitalArts and Sciences.

“Creative Capital Summary”

Venture capital is the very embodiment of establishing successful businesses and companies. It helped entrepreneurship to grow since the beginning of the New Age, driven by commercially oriented people. In the old days, investors were mostly compared to conquerors, meaning that their capital was a way to enforce new politics and practices into the state.

You might be wondering:

For example, we can go way back in the 15th century, when Spanish royal families and Italian investors financed Christopher Columbus’s expeditions. According to many historians, this trip marked the beginning of the investor’s era. Generally speaking, the New World was founded by the venture capitalists or sometimes even referred as risk-takers. However, we cannot neglect the fact, which connects this concept to the birth of a legitimate industry, soon after the disastrous World War II. Georges Doriot and his fellows transformed the venture capital business idea into a powerhouse field of investment.

Stay tuned to learn more about the first company in the industry:

Doriot is the world’s first ever founder of a public venture capital firm. The American Research and Development Corporation (ARD) located in Boston is the legitimate successor of the medieval vision. Meaning that – Conquering Global Markets is like winning battles.

Are you still not sure about this point? – Let’s make things clear.

In other words, the super-successful company focused on financing technology, science, and medicine. Fortunately, all these industries were among the most prosperous ones, gaining momentum and bringing profits to businesses associated with them.  

Shortly after, Doriot began his campaign as ARD’s president, the nature of finance and investment was strongly linked to the wealthy elite and industrial magnates. This was once in a lifetime opportunity, just waiting to be explored, and that’s what happened.

This is crazy:

The newcomers in the world of business had a tough time finding financiers for their newly established companies. Banks refused to fall under the promise of prosperity which allowed Doriot to grab this possibility and turn it into profits. In fact, the society wasn’t 100% convinced by the innovative, cutting-edge firms, due to entry barriers and intense competition. ARD, despite the risk of untested methods, decided to finance these small companies, that later on became top-notch corporations.

Unlike other things, now, you have a chance to get a closer look at the practices used by Georges Doriot – the father, creator, founder, of the venture capital industry. He was famous for many things; one phrase especially explains what his thoughts on stock maneuvers were – “I don’t know anyone on Wall Street who ever built a company. Our interpretation is unnecessary! We believe that all of you would agree that Creative Capital, is not a book, but a way of life.

The author of “Creative Capital” – Spencer E. Ante deliberately shares some his “secret” habits that indicate nothing other than dedication, discipline, strategy, and energy. He is a man of character, a charismatic individual who followed a simple vision. In reality, many famous high-tech companies owe their success to Doriot.

Key Lessons from “Creative Capital”

1.      The man of the future
2.      Confronting the banks and their aversive attitude towards start-ups
3.      Find out who is the real master

The man of the future

According to the people who met Doriot and communicated with him on a daily basis, they described him as a rational human being. “The General” was a nickname he obtained during his career as a business expert and entrepreneur. The wisdom of playing side by side with danger without getting into trouble was a part of the expertise he delivered.

Confronting the banks and their aversive attitude towards start-ups

Even though the banks refused to make their contribution to the prosperity of these newcomers, leaders like Georges Doriot thought differently. As long as we believe in a certain vision, our strategy stays the same – ARD.

The right investment philosophy

Despite the outside pressure, Doriot observed the firms he backed financially. The reason for doing was his broader view and the adoption of long-term methods. He never claimed to have any interest in instant profits, although some of the tactics were focused around quick ROI.

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“Creative Capital” Quotes

Our Critical Review

This book provides an insight into the modern history and life of the first venture capitalist Georges Doriot. This is undoubtedly a must-read material that according to us is worthy of your time. It’s not easy to find many drawbacks because it surely is a comprehensive experience.