# kaal:claim:2740477-038

**Claim.** The authors concede a limitation of their own proposal: the innovation potential identified by venture capital finance allocation may not always be shared by the market at large.

**Type.** failure  **Support.** argued

**Holds when.**

- technology companies increasingly staying private
- market undervaluation of formerly venture capital financed companies

**Source quote.**

> the innovation potential identified by venture capital finance allocation may not always be shared by the market at large.

**From.** Wulf A. Kaal, Erik P.M. Vermeulen, *Venture Capital as Dynamic Regulation of Disruptive Innovation* (2016), VII. Venture Capital as Dynamic Regulation of Disruptive Innovation, page 48

**Cite as.** Wulf A. Kaal, Erik P.M. Vermeulen, Venture Capital as Dynamic Regulation of Disruptive Innovation (2016). SSRN: https://ssrn.com/abstract=2740477

**Verify.** sha256 of source PDF `c72871b76fa2ad5a8a69ee8d3defc8f64e624be9052ce763e79cf6c58883f726` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20and%20Vermeulen%20-%202016%20-%20Venture%20Capital%20as%20Dynamic%20Regulation%20of%20Disruptive%20Innovation.pdf

**Failure mode.** Venture capital signal not validated by the market  (family: measurement-and-metric-failure)

**Topics.** innovation, law-and-legal-systems, economics

**Keywords.** venture-capital, signal-reliability, market-validation, limitations

**Related claims.**

- extended_by: https://wulfkaal.github.io/claims/2808132-046

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