# kaal:claim:3962614-005

**Claim.** Because traditional fiat VC funds must maintain liquidity to support capital calls from their investors, they are limited in their ability to deploy capital, which affects their return on investment and overall fund performance.

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

**Holds when.**

- fiat denominated venture capital funds subject to capital calls

**Source quote.**

> Because of their ability to maintain liquidity to support capital calls from their investors, traditional fiat VC funds are limited in their ability to deploy capital.

**From.** Wulf A. Kaal, *REPUTATION AS CAPITAL – How Decentralized Autonomous Organizations Address Shortcomings in the Ventu* (2021), II.1.a) Liquidity - Capital Calls and Raising Capital, page 6

**Cite as.** Wulf A. Kaal, REPUTATION AS CAPITAL – How Decentralized Autonomous Organizations Address Shortcomings in the Ventu (2021). SSRN: https://ssrn.com/abstract=3962614

**Verify.** sha256 of source PDF `c6e202e77fd08db801f932774026458b94e5d103abf30cb1189fe6a1c5edf391` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202021%20-%20REPUTATION%20AS%20CAPITAL%20%E2%80%93%20How%20Decentralized%20Autonomous%20Organizations%20Address%20Shortcomings%20in%20the%20Ventu.pdf

**Failure mode.** Capital call liquidity drag  (family: liquidity-and-market-structure-failure)

**Topics.** defi

**Keywords.** capital-calls, liquidity-reserves, capital-deployment, fund-performance

**Related claims.**

- supports: https://wulfkaal.github.io/claims/3949098-040

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