Abstract: Blue Angels, "Venture Capital," and "Whales": Networks Financing the Takeoff of the Second Industrial Revolution in France, 1890s-1920s

Hubert Bonin


The emergence of startup companies during the takeoff of the second industrial revolution could have spurred a new framework for the financial market to provide them with cash. Conversely, family capital inherited from existing firms and assets accumulated at merchant banks by interests consolidated during the nineteenth century contributed largely to the "economic revolution." Several industrial corporations that took part in the economic revolution alongside schemes of diversification and/or reconversion towards preceding economies brought in a huge part of this equity. However, new forms of financing added their forces thanks to the investment and deposit banks that mobilized their networks of investors and savers to enlarge the financial markets.

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