# kaal:claim:3067615-013

**Claim.** The disruption of venture capital by ICOs is in part self-inflicted: venture capital funds continuously invested in innovation while insufficiently innovating their own business model, leaving them exposed to a more efficient financing tool.

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

**Holds when.**

- venture capital industry financing highly innovative start-ups

**Source quote.**

> The disruptive effect of ICOs on the venture capital industry is in part the result of the venture capital fund lacking innovation. Paradoxically, venture capital funds continuously invested in innovation, while insufficiently innovating themselves.33

**From.** Wulf A. Kaal, Marco Dell'Erba, *Initial Coin Offerings Emerging Practices, Risk Factors, and Red Flags* (2017), III. Disruptive Effects, page 12

**Cite as.** Wulf A. Kaal, Marco Dell'Erba, Initial Coin Offerings Emerging Practices, Risk Factors, and Red Flags (2017). SSRN: https://ssrn.com/abstract=3067615

**Verify.** sha256 of source PDF `164ce15b9eb1e8847ebcb073f5b23a96b4974ad0308d77469a9455d4a1ebeb38` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20and%20Dell%27Erba%20-%202017%20-%20Initial%20Coin%20Offerings%20Emerging%20Practices%2C%20Risk%20Factors%2C%20and%20Red%20Flags.pdf

**Failure mode.** Venture capital innovation deficit  (family: incumbent-resistance-to-adoption)

**Topics.** innovation

**Keywords.** venture-capital, disruption, business-model-stagnation, innovation

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