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.