# kaal:claim:2808132-046

**Claim.** The authors concede that the trend for venture-capital-financed technology companies to stay private and the market undervaluation of formerly venture-capital-financed companies mean 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.**

- long-term market valuation of venture-capital-financed innovation
- companies remaining private rather than listing

**Source quote.**

> technology companies, among others, to stay private129 and market undervaluation of formerly venture-capital-financed companies130 suggest that the innovation potential identified by venture-capital-finance allocation may not always be shared by the market

**From.** Wulf A. Kaal, Erik P.M. Vermeulen, *How to Regulate Disruptive Innovation - From Facts to Data* (2016), VI. Venture Capital as Dynamic Regulation of Disruptive Innovation, page 38

**Cite as.** Wulf A. Kaal, Erik P.M. Vermeulen, How to Regulate Disruptive Innovation - From Facts to Data (2016). SSRN: https://ssrn.com/abstract=2808132

**Verify.** sha256 of source PDF `3515f2317ed9c1d33ae55d70467cdf1f6c4e350065ea6a887d5d7619599ad7d2` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20and%20Vermeulen%20-%202016%20-%20How%20to%20Regulate%20Disruptive%20Innovation%20-%20From%20Facts%20to%20Data.pdf

**Failure mode.** Venture capital signal divergence from market valuation  (family: measurement-and-metric-failure)

**Topics.** economics, innovation

**Keywords.** market-undervaluation, venture-capital, signal-limitations, staying-private

**Related claims.**

- extends: https://wulfkaal.github.io/claims/2740477-038

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