kaal:claim:3962614-019

The typical VC fee based compensation structure can lead to serious shortcomings, including excessive fundraising, suboptimal investments, misevaluation, and overfunding of portfolio companies during a fund's holding period.

Source quote, verbatim

The typical VC fee-based compensation structure can lead to serious shortcomings, including excessive fundraising, suboptimal investments, misevaluation, and overfunding of the portfolio companies during a fund's holding period.

From

Wulf A. Kaal, REPUTATION AS CAPITAL – How Decentralized Autonomous Organizations Address Shortcomings in the Ventu (2021), III. Alternative Early Round Funding Mechanisms, p. 12
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

fee based VC compensation arrangements

Classification

failuresupport: arguedfailure: Fee driven incentive distortionfamily: agency-cost-and-managerial-opportunismai-and-agentsrisk-and-incentivesinnovation

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Attestation record: colloquium/attestations/79cb524ffd97911f...json
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