*VC: An American History*, by Tom Nicholas

An excellent and original economic history of venture capital, with lots of new material, brought together in a convenient and readable form.  Here is one excerpt:

…nineteenth century whaling can be compared to modern venture capital in at least three respects.  First, whaling was the archetypical skewed-distribution business, sustained by highly lucrative but low-probability payoff events.  Voyages often lasted several years and and covered geographic areas in the search for elusive whale pod.  The long-tailed distribution of profits held the same allure for funders of whaling voyages as it does for a venture capital industry reliant on extreme returns from a very small subset of investments.  Although other industries across history, such as gold exploration and oil wildcatting, have been characterized by long-tail outcomes, no industry gets quite as close as whaling does to matching the organization and distribution of returns associated with the VC sector.

The book also covers VC in the Industrial Revolution, to what extent Mellon and Morgan can be thought of as venture capitalists, the institutionalization of venture capital in the 1950s, how the limited partnership structure came to VC, the roles of Intel and Genentech, Sequoia Capital, and the growth of a true Silicon Valley ecosystem.

How about this?:

During the 1970s, San Jose State University was graduating more scientists and engineers than Stanford or Berkeley, while local community colleges within the California system provided crucial access to technical training programs.

Recommended to anyone with an interest in the topic, you can pre-order here.


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