Georges Doriot founded the first venture capital firm, American Research & Development Corporation (ARDC), in 1946 to encourage private sector investments in businesses run by soldiers returning from World War II. ARDC's first major success was investing $70,000 in Digital Equipment Corporation in 1957, which was valued at $335 million when it went public in 1968, returning over 500 times the initial investment. However, the real reason for their success, and for Columbus' discovery of America, was not predictable factors but having an "reshaping" mindset that avoided fallacies of security and expectations, and focused on learning, reshaping perspectives, and discovering unexpected opportunities through trying new approaches.

2. The failure of the
creative capital.
By Carlos Polo
@carlospologil

3. Georges Doriot.
Born: 1899, Paris
Died: June 1987, Boston
Education: Harvard
Business School

4. 1 st Venture Capital Firm.
A merican R esearch & Founded at 1946
D evelopment C orporation . To encourage private sector
investments in businesses
run by soldiers who were
returning from World War II

5. The first home run.
ARDC invested $70.000 in
1957
Valued $335 million when IPO
in 1968
Return >500 times

6. Was it really the
first home run?

7. Isabel I de Castilla.
Born: 1451, Madrigal de las altas
torres
Died: 1504, Medina del campo
Education: Queen at 18 and
during 30 years

8. Cristobal Colón.
Born: 1451, Genova
Died: 1506, Valladolid
Sailor, mapmaker, marine
admiral

9. A real game changer.
The world is no longer flat
There’s a brand new world
The world is now dramatically
different

10. What this two
huge successes
have in
common?

11. Done after war periods?

12. To improve what existed?

13. Smart capital?
$70.000 1.140.000
Maravedís
ARDC Luis
Santangel

14. Pfffff… Meh.

15. The real reason
why they
succeeded.

16. 1942 market research.
How many Is the
expeditions
returned?
0 world
flat?
90% y
What would
you find if 90%
sailing to the
west? dragons

17. 1942 fallacy of security.
As 0 The
expeditions
returned world
after sailing
to the west… is flat

18. Late 50’s computers.
Big, expensive, difficult-to-use
systems
Glass-encased mainframes in
labs
Only IBM making money on them

19. Computer market fallacy
of security.
$25.000 There’s no
room for
is the price of a
mini-computer
consumer
during early 60’s market

20. Why they succeeded?
Investments
weren’t placed
over predictions

21. Entrepreneurial fallacy.
Your Idea Your Your success
Resources expectations in an expected
Network future
Money
…

22. Failure of creative capital.
Not having a
“reshaping”
mindset

23. VC firms failure rate.
99,4%

24. VC firms failure facts.

25. Failure of creative capital.
To look for India
could make you find
How can a
America
BP
manage It’s not worth being
that… the first but better
taking advantage of
resources

26. MINDSET

27. Avoiding security fallacy.
1. Go outside
2. Try something
3. Learn
4. Reshape
5. Go back to point 1 until
you discover the secret
sauce

28. THANK x
@carlospologil