Georges Doriot came to the USA from France and changed the world through technological innovation. Known as the Father of Venture Capital, Doriot employed creatively deployed capital investments to help win World War II and to help turn the USA into an economic powerhouse.

November 24, 2024

Dream10X Episode 67: Creative Capital

JC talks about the book, 'Creative Capital', by Spencer Ante. He discusses the life story of Georges Doriot, who had a significant impact on American venture capital and industrial production during World War II. JC highlights key moments from Doriot's life, such as his work with Peugeot, his involvement in converting factories for war efforts, and the establishment of American Research and Development, which became the first venture capital company in America. He also touches on the history of venture capital and its development on both coasts of the United States.

An average idea in the hands of an able man is worth much more than an outstanding idea in the possession of a person with only average ability.Geroges Doriot

Five Key Takeaways

Origins of Venture Capital

The book “Creative Capital” explores Georges Doriot’s pivotal role in establishing venture capital in America. His experience during World War II, converting factories for military production, inspired his approach to founding the first venture capital firm, American Research and Development (ARD).

Impact on Military Innovation

Doriot’s efforts during World War II, including enhancing rations, improving soldiers’ equipment, and transforming factory production for the war effort, exemplified his innovative use of resources. His work significantly contributed to America’s wartime success.

Educational and Career Background

Doriot’s journey from France to the U.S. included studying at MIT, transferring to Harvard Business School, and eventually becoming a professor. His early career influenced his ability to merge academia, industry, and innovation.

Evolution of Venture Capital

Doriot’s ARD was instrumental in funding companies like Digital Equipment Corporation, setting the stage for the East Coast venture capital scene. This model later inspired the development of the West Coast’s renowned VC firms such as Sequoia Capital and Kleiner Perkins.

Cultural and Historical Insights

The narrative connects historical anecdotes, like Doriot’s influence on WWII innovations and Margaret Mead’s contributions to designing military equipment, with broader reflections on curiosity, innovation, and the transformative power of venture capital.