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Schumpeter and Venture Finance. Radical Theorist, Broke Investor and Enigmatic Teacher

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  • Michael Peneder
  • Andreas Resch

Abstract

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.

Suggested Citation

  • Michael Peneder & Andreas Resch, 2014. "Schumpeter and Venture Finance. Radical Theorist, Broke Investor and Enigmatic Teacher," WIFO Working Papers 490, WIFO.
    • Handle: RePEc:wfo:wpaper:y:2014:i:490
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    2. Heinz D. Kurz, 2017. "Is there a “Ricardian Vice”? And what is its relationship with economic policy ad“vice”?," Journal of Evolutionary Economics, Springer, vol. 27(1), pages 91-114, January.
    3. Havran, Dániel, 2017. "Schumpeter a tőkepiacon. Schumpeter finanszírozási elméletének fejlődése és életrajzi vonatkozásai [Schumpeter on the capital market: the evolution and biographical relations of Schumpeter's credit theory of money]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(10), pages 1056-1072.
    4. Denis Frydrych & Tony Kinder, 2015. "How New Is Crowdfunding? The Venture Capital Evolution without Revolution – Discourse on Risk Capital Themes and their Relevance to Poland (Jak nowe jest zjawisko finansowana spolecznosciowego? Ewolucja kapitalu wysokiego ryzyka bez rewolucji – rozwa," Problemy Zarzadzania, University of Warsaw, Faculty of Management, vol. 13(56), pages 177-194.
    5. Michael Peneder, 2022. "Digitization and the evolution of money as a social technology of account," Journal of Evolutionary Economics, Springer, vol. 32(1), pages 175-203, January.
    6. Michael Peneder & Andreas Resch, 2025. "Schumpeter’s theoretical positions in the early 1920s and his projects as a banker and venture investor," Journal of Evolutionary Economics, Springer, vol. 35(4), pages 609-628, September.

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