Schumpeter's relation to venture finance constitutes a fascinating yet so far unacknowledged chapter of his biography and
financial history. Presenting new historical evidence and pointing out connections that have so far escaped attention, we
first discuss Schumpeter's venture theory of money and banking, then his personal history as a broke investor in Vienna, and
finally his influence on the emerging venture industry during his later years at Harvard. We show how the theoretical vision
inspired his failed effort as a venture investor in the 1920s, and provided a powerful intellectual frame for the later development
of venture finance in the 1940s.
Forschungsbereich:Makroökonomie und europäische Wirtschaftspolitik