Using specific examples, explain what role private investment and initiative played in european expansion. what was the role did state sponsorship and patronage?

Some european governments, even before the advent of the Exploration Era, had the practice of giving wealthy individuals the right to economically exploit their newly discovered territories as a means of attracting investments to fund their expansion, with Portugal being one of the earliest examples. In the 1440s the Crown of Portugal divided and donated its recently found island of Madeira to a number of nobles close to the court, being the first Captaincy, Machico, given to Tristão Vaz Teixeira in 1440. The scheme was successful and was then repeated during the colonization of Brazil.

Private investments helped the european courts secure their positions on those new territories and cover their financial shortcomings. It was exerted through official sponsorship of certain expeditions in the form of politicla, technical, military or other forms of assistance, or the patronage of individuals close to the administration.  

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