In 1492 . . .

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In 1492 . . .

• Italian sailor
• Trying to find a faster route to China and India
• Hard time getting funded
• Spices, gold, precious stones
• 3 ships (Niña, Pinta, Santa Maria)
• Queen Isabella (Spain)
• The voyage took longer than first thought
• People thought the Earth was flat and he would
  sail off the edge of the world

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Map 1
Fra Mauo map (1459)
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Map 2
Genoese map (1457)
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Map 3
Pietro Vesconte's world map (1321)
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King Ferdinand and Queen Isabella, Venture
Capitalists?
Characteristics of Venture Capitalists Example from Columbus Voyage?
Invest in new technologies Sailing west to reach India or China was an untested idea. Even though most people did not think the Earth was flat, this journey presented new challenges.
Invest in risky ventures Many things could go wrong that would prevent Columbus from returning to Spain getting lost, starving, shipwreck, illness and injury, etc. And Columbusfor all his passionmight have been wrong.
Own a portion of the company Even after granting all Columbus demands, Spain still retained seven-eighths of any returns from the first voyage, and seven-eighths of the returns from subsequent voyages.
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Columbus as Entrepreneur?
Characteristics of Entrepreneurs Example from Columbus Voyage?
Start new businesses/enterprises Sailing west to reach India or China was an untested idea. Even though most people did not think the Earth was flat, this journey presented new challenges, mainly because the distances involved were much longer than Columbus estimated.
Bear all the risks of starting the business All Queen Isabella and Spain risked was investment capital. Columbus was risking his life. Many things could go wrong that would prevent Columbus from returning to Spain getting lost, starving, shipwreck, injury and illness, etc. If the venture had failed, Columbus and his crew might be dead.
Invest some of own resources in the business Columbus invested his time and resources. He also asked that he be allowed to invest an amount equal to one-eighth the cost of additional journeys in return for one-eighth of the profits.