American Research and Development Corporation was a pioneering venture capital firm that played a significant role in the development of the computer industry.
Founded in 1946 by a group of investors including Arthur Rock, the company was initially focused on investing in early-stage companies, often providing crucial funding to help them get off the ground.
One of the company's most notable investments was in the development of the first commercial computer, the UNIVAC 1, which was released in 1951.
The company's innovative approach to investing and its focus on supporting emerging technologies helped to establish it as a leader in the venture capital industry.
American R&D Corporation
American Research and Development Corporation was founded in 1946 by Georges Doriot, the "father of venture capitalism", along with Ralph Flanders and Karl Compton.
The firm's primary goal was to encourage private sector investments in businesses run by soldiers returning from World War II.
ARDC was the first institutional private equity investment firm to accept money from sources other than wealthy families.
Georges Doriot led the firm until his retirement in 1971, after which ARDC merged with Textron in 1972.
During its existence, ARDC invested in over 150 companies and had several notable successes, including a 1957 investment in Digital Equipment Corporation (DEC) that would eventually be valued at over $355 million.
This investment in DEC represented a return of over 500 times on its investment, with an annualized rate of return of 101%.
ARDC's legacy can be seen in the numerous prominent venture capital firms founded by its former employees, including Greylock Partners and Morgan, Holland Ventures.
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