CHAPTER 10 • NETWORKING FOR VENTURE CAPITAL 213
In the early years of venture capital, there were relatively few
funds and the pool of investors was small. Most investors were wealthy
families or individuals (many of them successful entrepreneurs), insur-
ance companies, banks, and corporations. For many years, the number
of firms and the capital invested remained quite small. The industry
pioneer, ARD raised less than $8 million in its first 10 years. (This is in
sharp contrast to the more than $100 billion raised in the industry in a
single year: 2000.)
1
The Context of Growth
Legal changes in the late 1970s and early 1980s encouraged both indi-
viduals and institutions to raise their stakes in venture capital funds.
Individual investors benefited from ...