# kaal:claim:3962614-015

**Claim.** As a rule of thumb in early investment rounds, the lower the information asymmetry the lower the payout, and below a certain threshold of established value venture capitalists will rarely invest at all.

**Type.** condition  **Support.** asserted

**Holds when.**

- early investment rounds

**Source quote.**

> As a rule of thumb in the early investment rounds, the lower the information asymmetry, the lower the payout. Below a certain threshold of established value, VCs will rarely invest.

**From.** Wulf A. Kaal, *REPUTATION AS CAPITAL – How Decentralized Autonomous Organizations Address Shortcomings in the Ventu* (2021), III. Alternative Early Round Funding Mechanisms, page 11

**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

**Topics.** disclosure, innovation

**Keywords.** information-asymmetry, early-round-funding, investment-threshold, venture-capital

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