kaal:claim:3962614-006

Because time spent raising capital from limited partners is time taken away from portfolio company due diligence, the current VC model tends to reflect the networking and public relations ability of the general partner instead of their capital allocation ability.

Source quote, verbatim

Because of this dynamic, the current VC model tends to reflect the networking and public relations ability of the VC's general partner instead of their capital allocation ability.

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, p. 6
https://ssrn.com/abstract=3962614 · source PDF

Cite as

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

Holds when

traditional fiat VC funds that must continuously raise capital from limited partners

Classification

mechanismsupport: arguedfailure: PR ability displaces allocation skillfamily: agency-cost-and-managerial-opportunisminstitutional-design

Verify

The quote above is an exact substring of the source PDF, whose sha256 is c6e202e77fd08db801f932774026458b94e5d103abf30cb1189fe6a1c5edf391. Extraction method: pdf-text-layer.
Attestation record: colloquium/attestations/749f4600f4834612...json
Verify the binding yourself: curl -s https://wulfkaal.github.io/claims/3962614-006.md | sha256sum