Why did the Virginia colony go bankrupt?

Answer 1

The Virginia colony went bankrupt primarily due to mismanagement and financial overreach by the Virginia Company, which struggled with high costs and low tobacco prices. Additionally, the reliance on a single cash crop, tobacco, made the colony vulnerable to market fluctuations. Conflicts with Indigenous peoples and ongoing challenges in labor supply further exacerbated economic difficulties, ultimately leading to the company's collapse and the colony coming under royal control in 1624.