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Arcane

Hey, I'm on Medial • 1y

THE ORIGINS OF VC The origins of Venture Capital can be traced back to whaling expeditions from the 1800s. And you will be astonished to see how SIMILAR are the distribution of returns between the two (check image) Just like VC is today, whaling depended on rare but highly profitable catches. There was a financial backer for these expeditions, who took the risk. The sailors would receive a decent stipend and their profit share. But, this was ONLY AFTER the financier got back the principal and his share of profit. Only a few ventures made big money, but those few were so profitable that they kept the industry going, proving who could effectively deploy capital and who could not. And American whaling agents MASTERED how to make money out of this risky business in the mid 1800s, as almost 75% of the ships used for these expeditions were American.

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