# kaal:claim:3406323-005

**Claim.** ICOs changed the venture funding market because they provide investors liquidity far faster than the traditional venture capital path to a late IPO or acquisition, letting venture funds capitalize on profits early.

**Type.** mechanism  **Support.** argued

**Holds when.**

- venture capital funds invested in crypto start-ups

**Source quote.**

> By contrast, ICOs provide liquidity to investors much faster and allow venture capital funds to capitalize on existing profits early.

**From.** Wulf A. Kaal, *Decentralization - A Primer on the New Economy* (2019), II. Types of Decentralization, page 6

**Cite as.** Wulf A. Kaal, Decentralization - A Primer on the New Economy (2019). SSRN: https://ssrn.com/abstract=3406323

**Verify.** sha256 of source PDF `6293780b57a1ae1de17ec00f99cc94295d4f72ea4d08b17a5c08c44772b221db` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202019%20-%20Decentralization%20-%20A%20Primer%20on%20the%20New%20Economy.pdf

**Topics.** securities-law, economics, innovation, defi

**Keywords.** ico-market, venture-capital, liquidity, exit-timing

**Superseded by.** A later claim revises this one. Prefer quoting: https://wulfkaal.github.io/claims/3606663-006

**Related claims.**

- supported_by: https://wulfkaal.github.io/claims/3962614-003
- restated_by: https://wulfkaal.github.io/claims/3409548-033
- supported_by: https://wulfkaal.github.io/claims/3606663-008

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