Georges Doriot
   HOME

TheInfoList



OR:

Georges Frédéric Doriot (September 24, 1899 – June 2, 1987) was a French-American known for his prolific careers in military, academics, business and education. An émigré from France, Doriot became a professor of Industrial Management at
Harvard Business School Harvard Business School (HBS) is the graduate school, graduate business school of Harvard University, a Private university, private Ivy League research university. Located in Allston, Massachusetts, HBS owns Harvard Business Publishing, which p ...
and then director of the U.S. Army's Military Planning Division, Quartermaster General, during World War II, eventually being promoted to brigadier general. In 1946, he founded American Research and Development Corporation, regarded as one of the world's two first venture capital firms, earning him the
sobriquet A sobriquet ( ) is a descriptive nickname, sometimes assumed, but often given by another. A sobriquet is distinct from a pseudonym in that it is typically a familiar name used in place of a real name without the need for explanation; it may beco ...
"father of
venture capital Venture capital (VC) is a form of private equity financing provided by firms or funds to start-up company, startup, early-stage, and emerging companies, that have been deemed to have high growth potential or that have demonstrated high growth in ...
ism". In 1957, he founded
INSEAD INSEAD ( ; French: ''Institut européen d'administration des affaires'') is a non-profit business school with locations in Europe (Fontainebleau, France), Asia (Singapore), the Middle East (Abu Dhabi, UAE) and North America (San Francisco, USA ...
, which is now one of the world's most prestigious business schools, known for its international diversity, advocacy for sustainability and entrepreneurship.


Youth and Education

Doriot was born in Paris, France in 1899, to Berthe Camille Baehler and Auguste Doriot, the pioneering motorist, racer, engineer, factory manager, dealer and car manufacturer (owner of D.F.P.). Doriot joined French army in artillery in 1917 but then returned to study when World War I ended and graduated from
University of Paris The University of Paris (), known Metonymy, metonymically as the Sorbonne (), was the leading university in Paris, France, from 1150 to 1970, except for 1793–1806 during the French Revolution. Emerging around 1150 as a corporation associated wit ...
in 1920. He emigrated to America in 1921 to study for an MBA at
Harvard Business School Harvard Business School (HBS) is the graduate school, graduate business school of Harvard University, a Private university, private Ivy League research university. Located in Allston, Massachusetts, HBS owns Harvard Business Publishing, which p ...
but dropped out for a career in Wall Street. However, in 1926 he returned to work as an assistant dean and eventually got promoted to
associate professor Associate professor is an academic title with two principal meanings: in the North American system and that of the ''Commonwealth system''. In the ''North American system'', used in the United States and many other countries, it is a position ...
.


Military service

He became a U.S. citizen in 1940 in order to be qualified to assume a military post created for him by a former student, Major General Edmund Gregory, as lieutenant colonel in the U.S. Army Quartermaster Corps and then as Director of the Military Planning Division for the Quartermaster General. In that capacity, Doriot managed all the procurement for the U.S. Army, from trucks to uniforms to rations. Doriot and his team resolved large-scale logistical problems that supplied the Allied Forces with the ammunition, nourishment, and equipment to fuel their success. He was eventually promoted to brigadier general. For his service, Doriot was awarded Distinguished Service Medal and honored as a
Commander of the British Empire The Most Excellent Order of the British Empire is a British order of chivalry, rewarding valuable service in a wide range of useful activities. It comprises five classes of awards across both civil and military divisions, the most senior two o ...
and with the French Legion of Honor.


Professorship at Harvard

As a professor at Harvard Business School, Georges F. Doriot was known for his rigorous and authoritative teaching style. His "Manufacturing" course, though ostensibly about production processes, covered a wide range of topics related to business management and strategy. Doriot's classes were primarily lecture-based, with little discussion, reflecting his belief in the importance of discipline and long-term strategic thinking. His educational philosophy emphasized the development of character and leadership, which he viewed as crucial for success in both business and life. The course, which ran from 1926 until Doriot's compulsory retirement in 1966, counted thousands of students, including some of HBS’ most high-profile graduates of the era, known as “Doriot Men,” such as Philip Caldwell (Ford Motor Co.), John Diebold (the Diebold Group), Ralph Hoagland (CVS), Dan Lufkin (Donaldson, Lufkin & Jenrette), and James D. Robinson III (American Express).


Founding of INSEAD

Doriot early attempt to reconnect with education in France was his founding of CPA – Centre de Perfectionnement aux Affaires in 1930. This later became part of
HEC Paris HEC Paris () is a business school and ''grande école'' located in Jouy-en-Josas, a southwestern outer suburb of Paris, France. It offers Bachelor, MiM, MSc in International Finance, MBA, EMBA, executive education, professional developm ...
in 2002, then rebranded as the HEC Paris executive MBA, de facto one of the oldest executive MBAs in the world. After World War II, Doriot's experience with both world wars drove his determination to bridge chronically hostile countries and build lasting peace in Europe. He envisioned a business school that would unite leaders from different countries, including the former hostiles, to rebuild economies and promote lasting peace. To ensure that, his vision for the school includes citizenship limits and language of instruction to be in either French, English or German to ensure cross-culture collaboration. In 1955, Doriot presented this idea to the Paris Chamber of Commerce, whose presidents, Jean Marcou and Philippe Dennis, not only funded the venture but also became first presidents of the school. Doriot's vision gained international backing, including from U.S. President
Dwight D. Eisenhower Dwight David "Ike" Eisenhower (born David Dwight Eisenhower; October 14, 1890 – March 28, 1969) was the 34th president of the United States, serving from 1953 to 1961. During World War II, he was Supreme Commander of the Allied Expeditionar ...
, who supported
INSEAD INSEAD ( ; French: ''Institut européen d'administration des affaires'') is a non-profit business school with locations in Europe (Fontainebleau, France), Asia (Singapore), the Middle East (Abu Dhabi, UAE) and North America (San Francisco, USA ...
's role in reconstructing Europe. Doriot selected Claude Janssen and Olivier Giscard d'Estaing, his former students at Harvard, as his co-founders. Janssen, well-connected in European business circles, had experience in finance, while Giscard d'Estaing, younger brother of the future French president,
Valéry Giscard d'Estaing Valéry René Marie Georges Giscard d'Estaing (, ; ; 2 February 19262 December 2020), also known as simply Giscard or VGE, was a French politician who served as President of France from 1974 to 1981. After serving as Ministry of the Economy ...
, brought a political network. INSEAD, initially as "Institut Européen d'Administration des Affaires" (lit. 'European Institute of Business Administration'), was established in 1957 and initially operated out of the Château de Fontainebleau, before relocating to its current Europe Campus in 1967. The first MBA class began on September 12, 1959, with 57 students. Today, INSEAD, having dropped its European branding for a more global mission, is one of the world's top
business school A business school is a higher education institution or professional school that teaches courses leading to degrees in business administration or management. A business school may also be referred to as school of management, management school, s ...
s, known for its drive for internationalism, globalization, strong culture of entrepreneurship, and successful alumni in global politics and corporate.


ARDC and the "Father of Venture Capital"

In 1946, Doriot returned to Harvard and the same year he founded American Research and Development Corporation (ARDC), one of the first two
venture capital Venture capital (VC) is a form of private equity financing provided by firms or funds to start-up company, startup, early-stage, and emerging companies, that have been deemed to have high growth potential or that have demonstrated high growth in ...
firms along with Ralph Flanders and Karl Compton (former president of
MIT The Massachusetts Institute of Technology (MIT) is a private research university in Cambridge, Massachusetts, United States. Established in 1861, MIT has played a significant role in the development of many areas of modern technology and sc ...
), to encourage private sector investments in businesses run by soldiers who were returning from World War II. ARDC's significance was primarily that it was the first institutional private equity investment firm that accepted money from sources other than wealthy families although it had several notable investment successes as well.The New Kings of Capitalism, Survey on the Private Equity industry
The Economist ''The Economist'' is a British newspaper published weekly in printed magazine format and daily on Electronic publishing, digital platforms. It publishes stories on topics that include economics, business, geopolitics, technology and culture. M ...
, November 25, 2004
ARDC is credited with the first major venture capital success story when its 1957 investment of in
Digital Equipment Corporation Digital Equipment Corporation (DEC ), using the trademark Digital, was a major American company in the computer industry from the 1960s to the 1990s. The company was co-founded by Ken Olsen and Harlan Anderson in 1957. Olsen was president until ...
(DEC) would be valued at over $38 million after the company's initial public offering in 1968 (representing a return of over 500 times on its investment and an annualized rate of return of 101%). Until his death, Doriot remained friends with Ken Olsen, Digital's founder. Doriot's leadership at ARDC was marked by his unique approach to venture capital, which emphasized the character and vision of entrepreneurs over financial projections. He believed in long-term investment and nurturing startups, famously comparing his role to that of a parent caring for a sick child, focusing on the potential of the people behind the businesses rather than seeking early exits. ARDC continued investing until 1971 with the retirement of Doriot. In 1972, Doriot merged ARDC with
Textron Textron Inc. is an American industrial Conglomerate (company), conglomerate based in Providence, Rhode Island. Textron's subsidiaries include Arctic Cat, Bell Textron, Kautex, Textron Aviation (which itself includes the Beechcraft and Cessna b ...
after investing in over 150 companies. For his role in the founding of ARDC Doriot is often referred to as the "father of venture capitalism".Kirsner, Scott.
Venture capital's grandfather
"
The Boston Globe ''The Boston Globe,'' also known locally as ''the Globe'', is an American daily newspaper founded and based in Boston, Massachusetts. The newspaper has won a total of 27 Pulitzer Prizes. ''The Boston Globe'' is the oldest and largest daily new ...
, April 6, 2008.


Death

Doriot died of lung cancer in 1987 in
Boston, Massachusetts Boston is the capital and most populous city in the Commonwealth (U.S. state), Commonwealth of Massachusetts in the United States. The city serves as the cultural and Financial centre, financial center of New England, a region of the Northeas ...
.


Legacy

The Doriot Climatic Chambers at the U.S. Army Soldier Systems Center,
Natick, Massachusetts Natick ( ) is a town in Middlesex County, Massachusetts, United States. It is near the center of the MetroWest region of Massachusetts, with a population of 37,006 at the 2020 United States census, 2020 census. west of Boston, Natick is part o ...
were named in his honor in 1994. (During his time in the US Army, Doriot had written and spoken about the need for an "Institute of Man" for the testing of soldiers and their equipment at environmental extremes. The DCCs are seen as a partial fulfillment of that vision.) The Doriot School of Capital was created in his name by the so-called Zeitgeist University, Geneva, Switzerland and Mexico City, Mexico Campus in 2020 with the goal of educating leaders and building companies.


See also

*
History of private equity and venture capital The history of private equity, venture capital, and the development of these asset classes has occurred through a series of boom-and-bust cycles since the middle of the 20th century. Within the broader private equity industry, two distinct sub-in ...
*
Private equity Private equity (PE) is stock in a private company that does not offer stock to the general public; instead it is offered to specialized investment funds and limited partnerships that take an active role in the management and structuring of the co ...
*
Leveraged buyout A leveraged buyout (LBO) is the acquisition of a company using a significant proportion of borrowed money (Leverage (finance), leverage) to fund the acquisition with the remainder of the purchase price funded with private equity. The assets of t ...


Archives and records


Georges F. Doriot research papers
at Baker Library Special Collections, Harvard Business School
Georges F. Doriot American Research and Development papers
at Baker Library Special Collections, Harvard Business School
Georges F. Doriot papers
at Baker Library Special Collections, Harvard Business School


References


Further reading

*
George F. Doriot papers
at Baker Library Special Collections, Harvard Business School {{DEFAULTSORT:Doriot, Georges Harvard Business School alumni American venture capitalists 1899 births 1987 deaths Deaths from lung cancer in Massachusetts United States Army generals Digital Equipment Corporation people French emigrants to the United States Businesspeople from Paris United States Army personnel of World War II Harvard Business School faculty