Why was the London Company formed?

Expert Answers

An illustration of the letter 'A' in a speech bubbles

The London Company was formed to spread the financial risks inherent in attempting to develop new settlements in what came to be the colonies of the New World. By attracting more investors, the amount required of each individual could be reduced. By coming together as a group and obtaining royal permission and protection for the settlement effort, the investors were increasing the odds of success for the venture.

The London Company's charter and patent authorized it to sponsor the settlement of part of the area that came to be known as Jamestown. It was granted permission to settle in

the territory known as Virginia, located between latitudes 34° and 41° north. The London Company was authorized to settle between latitudes 34° and 41° north

The sailing ships Godspeed, Discovery, and Susan Constant departed London on December 20, 1606 under the sponsorship of the London Company.

Approved by eNotes Editorial Team
Soaring plane image

We’ll help your grades soar

Start your 48-hour free trial and unlock all the summaries, Q&A, and analyses you need to get better grades now.

  • 30,000+ book summaries
  • 20% study tools discount
  • Ad-free content
  • PDF downloads
  • 300,000+ answers
  • 5-star customer support
Start your 48-Hour Free Trial