After failed attempts to colonise America in the 1580s, the Virginia Company was set up in 1606. King James I granted permission for a group of businessman to set up a colony in Virginia, called Jamestown.
Why was the Virginia Company set up?
The Virginia Company was set up to start colonies in America.
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They wanted to see if the land was suitable to grow vegetation and to hopefully find lots of gold.
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There was a rapid increase in the demand for tobacco. England wanted to take advantage of this, as it only grew in America.