# kaal:claim:2808132-047

**Claim.** Even if regulators could obtain the depth of information needed for anticipatory rulemaking, acting on venture capital signals risks wasting scarce regulatory resources, because venture capital funds make many investments that do not succeed and companies still incubating may raise no clear regulatory issues.

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

**Holds when.**

- anticipatory regulatory action based on venture capital data alone
- portfolio companies still in incubation

**Source quote.**

> anticipatory rulemaking, there may be risk of waste of scarce regulatory resources because VC funds make many investments, not all of which turn out to be successful. Moreover, if companies that received VC financing are still incubating, it may be largely

**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 39

**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.** False positive regulatory resource waste  (family: supervisory-capacity-gap)

**Topics.** innovation, dynamic-regulation

**Keywords.** false-positives, regulatory-resources, venture-capital, signal-limitations, anticipatory-rulemaking

**Related claims.**

- contests: https://wulfkaal.github.io/claims/2740477-035
- contests: https://wulfkaal.github.io/claims/2740477-036

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