Financing Cortés' Conquest: A Web of Investors

Hernando Cortés's audacious conquest of the Aztec Empire in the early 16th century was a pivotal moment in world history, but the expedition that made it possible wasn't solely funded by the Spanish crown. Instead, it was a complex undertaking involving a combination of private investment and royal authorization, a system common in the early stages of Spanish colonization. The initial authorization and commission for exploration came from Diego Velázquez de Cuéllar, the Governor of Cuba. Cortés, serving under Velázquez, was tasked with exploring the mainland coast of what is now Mexico. Velázquez, eager to expand his own power and wealth, initially provided a significant portion of the necessary funds. However, Velázquez’s support was not entirely altruistic. He expected a significant return on his investment in the form of tribute and resources extracted from any newly discovered territories. Beyond Velázquez, Cortés himself contributed a substantial amount of his own personal fortune. Having amassed considerable wealth in Cuba through land ownership and labor exploitation, Cortés leveraged his assets to outfit the expedition. He understood that securing funding was crucial to ensuring the success of the mission, as it allowed him to acquire necessary supplies, ships, weapons, and attract experienced soldiers. Recognizing the limits of his and Velázquez's resources, Cortés also sought investment from other individuals. This was done through a model akin to early venture capitalism. Wealthy merchants, landowners, and even some clergymen in Cuba saw the potential for enormous profits from a successful expedition. They invested in the form of supplies, provisions, and monetary loans, expecting a share of the spoils – gold, silver, and enslaved people – should Cortés discover riches. The precise details of these individual investments are often lost to history, obscured by incomplete records and self-serving accounts. However, it’s clear that a network of individuals risked their capital on Cortés's gamble. This willingness to invest highlights the fervent belief in the potential wealth to be extracted from the "New World." This mixed financing model created a tension between Cortés and Velázquez. As Cortés's expedition progressed and the scale of the Aztec Empire became apparent, their relationship deteriorated. Velázquez, fearing Cortés was acting independently and potentially undermining his authority, attempted to recall him. However, Cortés, having invested heavily and secured the loyalty of his men through promises of wealth, defied Velázquez’s orders. Ultimately, the success of Cortés's conquest transformed the financing landscape. Once the vast riches of the Aztec Empire became known, the Spanish crown took a more direct role in funding subsequent expeditions, exerting greater control over colonial ventures and diminishing the relative influence of private investors like Velázquez. However, the conquest itself was a testament to the power of combined public authorization and private investment in fueling exploration and conquest in the Age of Exploration. It was a risky endeavor, but the potential rewards spurred individuals to gamble on the ambition and ruthlessness of Hernando Cortés.