# kaal:claim:2150377-034

**Claim.** The compliance burden has raised the minimum viable scale for launching a hedge fund: an adviser reports that the capital needed to start a fund in New York rose from roughly $25 to $50 million to at least $100 million because of the increased cost of compliance with the registration and disclosure requirements.

**Type.** empirical  **Support.** evidenced

**Holds when.**

- startup hedge funds in New York
- single respondent account highlighted by the Author

**Source quote.**

> It used to take 25– 50 mil. to start a hedge fund in NY and then buil[d] a record and grow. Today it is at least 100 mil. [b]ecause of the increased cost of compliance with the registration and disclosure requirements.

**From.** Wulf A. Kaal, *Hedge Fund Manager Registration Under the Dodd-Frank Act* (2012), F. Investment Management Company

**Cite as.** Wulf A. Kaal, Hedge Fund Manager Registration Under the Dodd-Frank Act (2012). SSRN: https://ssrn.com/abstract=2150377

**Verify.** sha256 of source PDF `0b58bb409cac7674d78515f5374096f9a349de3bbd1983c990e0edc85a635a09` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202012%20-%20Hedge%20Fund%20Manager%20Registration%20Under%20the%20Dodd-Frank%20Act.pdf

**Failure mode.** startup-capital-threshold-quadrupled  (family: compliance-cost-and-barrier-to-entry)

**Topics.** risk-and-incentives, innovation, compliance, empirical-evidence

**Keywords.** barriers-to-entry, startup-funds, compliance-cost, minimum-scale, survey-results

**Related claims.**

- restated_by: https://wulfkaal.github.io/claims/2389423-004

**Canonical form.** This markdown file is the canonical hashed representation of the claim. Its sha256 is the content hash used for attestation.