Who is known as the 'Father of Venture Capital'?

The person known as the “Father of Venture Capital” is Georges Doriot.

Born in Paris in 1899, Doriot became a professor at Harvard Business School after moving to the United States. His teaching focused on manufacturing, management and innovation, and generations of students—including future investors—learned from his emphasis on backing capable people as well as promising ideas.

In 1946, Doriot became president of American Research and Development Corporation, usually called ARD. Unlike older investors who primarily used family fortunes, ARD raised money from institutions such as insurance companies, investment trusts and university endowments. That professional, institution-backed model helped establish the pattern associated with modern venture capital.

ARD’s most famous investment was Digital Equipment Corporation. In 1957, it invested $70,000 in the young computer company; the stake later became worth hundreds of millions of dollars. Doriot also helped found INSEAD in 1957 and served as a U.S. Army brigadier general during World War II. Arthur Rock was another notable Doriot student, but Rock is remembered for financing companies such as Fairchild Semiconductor and Intel, not for originating the venture-capital model.