238. Ventures in Capitalist Innovation, Part 1: History and Mechanics
This Machine Kills
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The History of Venture Capital
In 1979, the Department of Labor clarified their quote unquote prudent man rule under the Employee Retirement Income Security Act. Lee: The National Venture Capital Association lobbied very hard and directly for this one regulatory clarification on a rule led to a massive increase in capital for VC markets. In 1978, the year before the change, pension funds accounted for $481 million, which is 15% of VC investments in 1986. This goes from from 481 million and 15% ofVC investments jumping up to $4.8 billion and more than half of all VC investments coming from pension funds.
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