Edison avoided borrowing money from Wall Street
if possible, instead looked venture capital support
15
his work.
Edison's financial planning for his laboratory was
intended make him independent bankers.
costs.
Edison believed that the private bankers were out deprive
inventors the returns their inventions, and knew that
he could get better terms joint projects with venture
capitalists. disliked paying high interest rates and resented
the banks' practice calling their loans short notice.11-10
This brings the total yearly business with the Edison companies
to $27,000— sum less than half his estimated operating
14 . Rather than deal with private bank, Edison
preferred develop one-on-one relationship with venture
capitalist. The balance was found marketing the services
of the laboratory and carrying out research for venture
capitalists. Here the Wizard Menlo Park could work his
special magic impressionable financiers. His loathing the
New York banking community, which called "the usual crooked
gang Wall Street promoters," runs through his
correspondence.
The importance venture capitalists financing
Edison's work cannot underestimated; financiers and
. Edison had used
the services private bankers the past— Drexel, Morgan and
Co. played the important role financing the Edison electric
lighting system— and his experience with them had not been
pleasant
