An Introduction to Purple Arch Ventures

Frequently Asked Questions

FAQ

• Where is the transcript for this webinar?

  Speaker 1:
  Well, welcome everyone. I’m David Beazley, the managing partner for Purple Arch Ventures. We have Erik Hammer with us today, who you will hear from shortly, but for now I want to hand things off to Jasmi Shah for some opening remarks. Then we’ll all dig in on introducing you to Purple Arch. Just a quick reminder to everyone: this isn’t an offer or solicitation; it’s intended for information purposes only. Interested investors can access investment materials through our website. 

  Speaker 2:
  Thanks, David. Alumni Ventures has made venture investing accessible to accredited investors by leveraging affinity connections from alumni-tied universities. We access great deals, which helps us assemble diversified portfolios investing in the future economy. In less than five years, we have become the most active venture capital firm in the United States. We are raising and deploying more than $250 million per year, investing in 250+ companies. And that’s just the beginning. But our key competitive advantage is the 550,000 members of our community who can help effectuate positive outcomes for those portfolio companies. With this actively engaged group, we are just one LinkedIn connection away from anyone our founders may want to meet. Alumni Ventures is network-powered VC at its best, putting a virtuous circle of value. So we’re building something great here, and we would love anyone and everyone who hears our message today to be a part of our story in some way—either as an investor, a deal finder, or maybe just an engaged community member we can involve to help our companies succeed. So welcome everyone. We are Purple Arch Ventures.

  Speaker 1:
  One other quick reminder: we only have about 15 minutes of prepared content, so we’d certainly welcome questions submitted through our chat feature. Erik, can you share a minute or two on your background? And then Jasmi and I will do the same.

  Speaker 3:
  Sure, happy to. So, don’t hold it against me, but I’m a University of Texas undergrad. I then started my career with Deloitte Consulting, where I focused on corporate strategy and M&A. Eventually, I did make it to Evanston and Kellogg, where I got my MBA in finance. I then moved to the investing side, where I joined Rapoport, a venture firm that was focused on media. I was then recruited south to help build the strategy and execute investments for the PGA Tour’s corporate venture group down in Florida.

  Speaker 1:
  Somehow, Erik, we lured you back to the North and away from that warm weather and those phenomenal perks. While you’ve crushed it since your first day here, we’re certainly lucky to have you. Jasmi, another first-round draft choice for us—share a minute or two of your background if you don’t mind.

  Speaker 2:
  First of all, if it’d be me, you don’t know what the North is. We’ve been Raptors fans out there, where I’m from. I’m from Illinois in the South. I grew up in Toronto, Canada. I went to Schulich School of Business at York University, graduating with a BBA and majoring in finance. After that, like Erik, I got my MBA from Kellogg and I have held positions at places such as PwC, with Deloitte, and also the MasterCard Foundation and the Carlyle Group. I was also an operating executive at Sterling Partners within their healthcare portfolio. And my last position prior to Purple Arch was with HealthEdge, a global advisory firm focused on growth equity and venture capital-backed companies.

  Speaker 1:
  Well, to be successful in your career, I’ve always been advised to surround myself with people smarter than me. And I think that’s clearly the case here. Purple Arch and Alumni Ventures are obviously thrilled to have you both, and so am I. For everyone who doesn’t know me yet—I’m a two-time Wildcat, both my degrees—and right out of grad school, I built and successfully exited from a financial newsletter company, which was my foray into finance and entrepreneurship. From there, I became a professional money manager. Then in 2002, I built my own firm, which quickly evolved into a boutique merchant bank. By the end of 2016 though, the only thing I was having any fun doing was investing in venture-stage businesses. Right around that time, I was approached by Alumni Ventures—and as we all know, the rest is history.

  Speaker 1:
  Last but certainly not least, I would be remiss if I didn’t at least mention Ala, who’s off-camera running our tech. She’s our burgeoning superstar at Purple Arch and Alumni Ventures. She’s also an NU alum, who I hope all of you interact with someday. She’s smart, dedicated, tenacious—just three words that only scratch the surface of her value and contribution to our fund. Ala, thanks for running ops on this webinar. We truly appreciate you as our investor relations manager. Jasmi, I’m going to hand it back to you.

  Speaker 2:
  Absolutely. Thank you all for your invaluable contributions. For most of you, your investment journey with Purple Arch may conclude with Ala, but it will likely start with a call from one of our licensed senior partners, Darren and Stacy. They will share the critical details you need to know to complete your diligence on us. They’ll go a lot deeper than we can today and help determine if venture capital is the right investment to help diversify your portfolio.

  Speaker 3:
  Just one last thing about these senior partners. These registered professionals are really tied into the culture and strategy of Purple Arch and Alumni Ventures. They can field detailed questions about our process and performance—two things that we will really only have time to summarize today.

  Speaker 1:
  That’s the perfect segue—much appreciated. It’s like we scripted this or something. At least, that’s what the words say on my screen. The last generation of venture capital—the last 20 to 25 years—VC, especially top firms, have outperformed the S&P 500. VC is largely uncorrelated with other asset classes, partly because we’re investing today for outcomes several years from now. So the economy today really only affects us in ways related to valuations and survivability.

  Speaker 2:
  Having worked for many, I know that sophisticated institutional investors put about 50% of their capital into early-stage private companies with high growth potential. Alumni Ventures—and specifically Purple Arch Ventures—offers you a chance to own an actively managed venture portfolio co-investing alongside leading venture firms.

  Speaker 3:
  Within the last year, we’ve done deals with General Catalyst, Union Square Ventures, New Enterprise Associates, Maveron, Founders Fund, Bessemer, Greylock, Khosla, Lightspeed, Google Ventures, Y Combinator, and others.

  Speaker 1:
  Actually, they’ve all been pretty phenomenal to work with, and I hope they would say the same about us. Not only are we diversified across lead investors, but also stage, industry, and geography. I definitely want to unpack each of those things to give a little bit more detail, starting with stage. We are targeting about 15% of our capital—or about six deals—with smaller checks into seed rounds. Fifty percent in early hyper-growth rounds (that’s Series A and B), and the remaining thirty-five percent in later-stage growth or Series C and D. This should create a ladder of investment returns over time. Jasmi, do you want to talk a little bit about the sectors we focus on?

  Speaker 2:
  I would encourage everyone to take a look at our first hundred investments, most of which you can find on our website under the portfolio link. In every five-year CD, you’ll see exposure in the following categories that include but are not limited to—here we go: cloud services, marketplace, cybersecurity, crypto/blockchain, FinTech, EdTech, IoT, big data, enterprise software, AI/machine learning, robotics, VR/augmented reality, mobility, clean tech, green tech, e-commerce, mobile commerce, innovative CPG, biotech, and healthcare. And that’s just a representative sample.

  Speaker 3:
  Well, that was a great rapid-fire summary, Jasmi. To continue on diversification: we also diversify by geography. So almost a third or more of our capital will likely be deployed on the West Coast—the center of innovation over the past few decades. We have a satellite office in California and a huge contingency of Purple Arch alums. Another third will be invested in companies on the East Coast, with a concentration in New York and Boston, where we also have offices and alumni sending us opportunities. The remaining third will be invested everywhere else—including but not limited to the Midwest (where we are), but also Austin, Nashville, Boulder, and potentially even overseas markets. You can’t hide great companies from us since our community is everywhere, finding the best deals.

  Speaker 1:
  Also want to mention, Erik, we do have a satellite office being established in your old stomping grounds down there in Austin—should be up and running certainly later this year. A few deals that you all may have been reading about recently include BlockFi, a cryptocurrency lender and trading platform. They’re absolutely crushing it and making us look like geniuses for investing in them so early. This one is quickly reaching exit velocity and was originally referred to us by an angel investor in their pre-seed round who was a Kellogg alum and part of the Kellogg Finance Network in New York. Also want to point out Heaven’s Door, a collaboration between the successful founder of Angel’s Envy and music legend and lyrical icon Bob Dylan. They have thrived during the pandemic, as have most liquor companies—another referral from a Kellogg alum. And Trifacta—this is actually one led by an NYU alum that I personally knew on campus, who also later attended Kellogg—so a two-time Wildcat. Company’s doing really well and we continue to expect great things from them. These are also the kind of deals that we’re doing every month, and the kind you can expect to find in your Fund 5 portfolio and going forward. Jasmi?

  Speaker 2:
  To begin to summarize the opportunity—although I know we still need to talk about the structure of the fund—I want to refer back to my opening remarks. Purple Arch is a part of Alumni Ventures. We are a family—to reiterate, a family—of alumni-tethered funds. And collectively, we are the most active venture firm and number one in the United States, according to PitchBook. We leverage the affinity of alumni and connections to gain access to great deals being led by established lead VC investors—just like the one that David just described—being careful to highlight the public connection in each one.

  Speaker 3:
  Picking it up from there, Jasmi—each fund operates independently. So we are the fund for Northwestern alums, but all of our investment teams are extremely collaborative when it comes to sharing high-quality opportunities. So we share deals with our teams at Harvard, Yale, MIT, Penn, Stanford, Cal Berkeley, and the dozen or so other funds. And they share deals with us. It helps us diversify our portfolio and mitigate risk, which is good for all of us—and good for all of you. David, do you want to jump into the structure of the fund?

  Speaker 1:
  Yeah, I’m happy to. We charge the equivalent of a 2% annual management fee. We do take a 20% performance fee—that fee only kicks in after investors are completely paid back in full. And that includes management fees, which aligns our interests and should give you some assurance that we’re going to manage every single deal we do to its maximum exit potential. We are set up as a 10-year fund, but we will certainly see capital returns well ahead of that timeline. Our current funds are certainly proof of that. Minimum investment is $50,000—I’m sure all of you have seen that in our write-ups—although our average investment is just a bit higher. And that’s partly because we let people invest either with cash, retirement funds, trust funds—really, wherever you have your patient pools of capital. And typically, wherever you want to start the relationship with us, we can usually make it work. A few other meaningful stats, though: we’ve been at this for four years. And as Jasmi mentioned, we’ve made a hundred investments over that timeline. We’ve had five exits, 33 up rounds. Exits are what create the realized gains; up rounds are what create the paper gains in our portfolio. We’ve only lost money on a few deals so far, so we certainly have a portfolio that is signaling success. Obviously, past performance is not a guarantee of future results. But Jasmi—back to you.

  Speaker 2:
  I actually think our most meaningful stat is that we’ve grown our community to an impressive 31,000 alumni. That was just 5,000, our last three years ago—almost half with our Kellogg and the other half a combination of undergrad, med school, and law school. Not all of them have become investors yet, of course, but they are all like us in that they see themselves at the intersection of interest and engagement in technology, entrepreneurship, and of course, Purple pride. This group is like everyone on this webinar with us—they connect with us on a regular basis, reading our newsletters, reviewing blogs, and scanning other valuable venture capital educational material available on our website. This group also attends our community events, which we look forward to resuming soon. They comment on our social posts, support our hiring programs and apprenticeships, and there are so many other ways—we would have to put on an entire webinar just to list them and to say thank you.

  Speaker 1:
  Erik, and maybe we should, by the way. I’m sorry, Erik, go ahead.

  Speaker 3:
  No worries. So more specifically, the reason this community is crucial, if it’s not obvious yet, is because it’s our distinct competitive advantage in the marketplace. Not only is our community the source of our investors, but it also leads to investments and allows us to leverage expertise to make strategic introductions for our companies in the portfolios. No other VC comes close. Overall, the Alumni Ventures community is 550,000 strong and growing, which is a powerful, unmatched asset for us moving forward.

  Speaker 1:
  From a performance standpoint—I alluded to this a little bit—we can’t guarantee returns. What would make me happy, since I’m an investor in all the funds myself, is if investors started to see their money back within the first three to five years of the fund. Then, like any other fund, we will have a harvest period. And for us, since the concentration of our committed capital is in that hyper-growth round for most of these companies, we think that will be after year five. We think it’ll take at least that long for the majority of our companies to mature and exit favorably, delivering the potential of venture returns.

  The last benefit I really wanted to mention before we start answering questions is syndications. Every investor in Fund Five will earn a year-long membership into the Purple Arch Venture Club. In this club, investors can access individual deals, not just in our portfolio but some of the best deals we see in our sibling fund portfolios as well. This is an option you can exercise or not exercise—entirely at your discretion—and invest individually in deals that resonate with you. If it’s a Purple Arch deal, our minimum is smaller—it’s $10,000. If it’s from another AVG fund, the minimum is $25,000. Again, completely optional and at your discretion.

  Speaker 2:
  I think some examples from the past year include Hydrow. We saw tremendous growth in the home gym industries during the pandemic. Wasabi, which is competing with Amazon, Microsoft, and Dell for cloud storage—there’s a pretty compelling value proposition there.

  Speaker 3:
  Sure, and last but certainly not least, we syndicated BlockFi last year, which continues to be the best-performing deal in our portfolio and one of the best paper gain deals at Alumni Ventures.

  Speaker 1:
  As much as I would love to keep talking about BlockFi—and we could have an entire webinar about BlockFi—we would love to address a few questions. I know some have been submitted, and Ala is assembling them.

  First question is about timing: When do we need to commit and invest by? This is really about a Securities and Exchange Commission rule that limits us to only 99 accredited investors if you are a fund larger than $10 million. What I can share with everybody now is that we’ve had a great start to Fund Five. We have roughly 74 investors somewhere in our process of investing already. I would say about two-thirds of them would qualify as accredited. Another third of those would be considered qualified purchasers—not taken against our 99 number.

  But we have never seen traction like this before, which hopefully is a signal to everybody out there that we’re doing something well. What was a hypothesis four years ago can now be supported by empirical data. Our model is certainly working. But I would say within the next couple of months—or sooner—is better than later to commit and fund with us.

  Another question rolling in: Tell us about the closing process. This is something that we’ve been refining over the last four years. We have something that is appropriately called the Quick Close Portal. It’s three steps: You basically identify the amount of the investment, you sign subscription documents, and you fund. You still have to prove up your accredited status. And as soon as that happens, we countersign the documents, and you become an investor in our fund. We’ve had investors get through that in eight minutes. And I say that not to challenge any of you to try and break that record, but just to demonstrate how intuitive and easy-to-use that specific portal is.

  But it’s equal parts high-tech and high-touch. Ala, who is behind the scenes here, is really there to answer any specific question about the process. I’m highly accessible if there’s any question about strategy.

  How do you invest in the best deals? That’s a great question for Purple Arch, since we always invest in the best deals. Jasmi and Erik—Erik, can I ask you to get started, and then I want Jasmi to give us some color?

  Speaker 3:
  Sure. It’s a great question. It’s how we spend our days. I’d say two parts. First, it’s seeing all the great opportunities out there, right? So we spend a ton of time building relationships with other venture investors, with founders we’ve worked with, with people in the entrepreneurial community—to get introductions to really inspiring companies that might be raising capital.

  From there, it’s about how do you whittle those down and triage them into the very best opportunities. And for that, it’s a combination of deep diligence on our part—looking into the companies, the founders, trying to understand where the market might be going, competition, etc.—and then using our scorecard process and our investment committee process to be even, I’d say, more detailed in how we tackle these opportunities. We have a proprietary scorecard that we use to evaluate every deal so we’re consistent across the board and we’re diving into the same areas to make sure we understand where the opportunities are, where the risks are, and how we can create returns.

  Speaker 1:
  Before I let you provide color, I want to just expound on the scorecard piece, because I think it’s a pretty neat thing that allows us to normalize data—whether we’re looking at an early-stage mobility deal or a late-stage enterprise software deal. We’re really assessing four things—and in no particular order of importance: we’re looking at the deal valuation, runway, and round composition. We’re looking at the lead investor—the quality of the firm, the conviction of the lead, the lead partner’s track record.

  We’re looking at the company—customer demand, business model, momentum, capital efficiency, and the defensibility around customer acquisition. Is there a specific segment that they have a monopoly on acquiring?

  And last but certainly not least, it’s the team. It’s the founder—someone who’s been there, done it before, likely has an exit in his or her past, knows how to build shareholder value over time. Opportunity-founder fit.

  Then it’s really about the charisma and gravitas of who they’ve been able to draw into that opportunity with them—the key members of their org. Are these folks that have held similar positions in other places and helped tactically execute to specific milestones?

  We do have a fifth, and it’s a bonus, and it’s about board members. We rarely, if ever, get to exercise that five-point bonus, because not all our deals—although recently we had one with Fred Wilson—not all our deals have that star power that just by their presence can effectuate outcomes.

  Jasmi, we’d love to hear any color you want to add on how we get into great deals.

  Speaker 2:
  Yeah, I’d just echo the point about relationships. I think nurturing the relationships has benefited us in several fronts—whether it’s getting into a great deal, getting the right diligence call, building relationships with VC funds so you get into the next deal, increasing allocation, or helping colleagues. I really do feel it comes down to the relationship and nurturing those relationships.

  Then I guess the second thing is just being comfortable rolling up your sleeves. The guys will tell you—I tend to bring some of those deals that off the gate might not be obvious. But I think sometimes the best value is created in those deals. It’s just getting comfortable around that.

  Speaker 1:
  Yep, thank you both.

  Another question—this is a leading question—but what have you learned from the deals that failed? I lovingly, maybe euphemistically, call these “chalking them up to the experience bucket.” Erik, do you want to share a little bit? I’ll talk about Vector, but we’d love to just hear—whether it’s at Purple Arch or other places—what have you learned about deals that failed?

  Speaker 3:
  Yeah, you know, I think a lot of it—there’s no one reason failure happens, but it’s definitely something that does happen in venture, and something we think about when we go into a deal. A lot of times it’s the company not having the right people on the team who have been through this before—either in the right industry or the right stage. There are a series of missteps that are pretty common in startups, and you’ll see those happen.

  And along the way, it sometimes takes a little extra capital or a slight pivot to get that right. So we want to make sure we find teams that are capable of making those adjustments while you’re running a hundred miles an hour to build this company.

  So it’s about the people. Can they attract the right talent around them? Do they have enough capital to reach their next milestones?

  I think a lot of times we see great teams with great ideas just run out of steam—run out of money to keep funding the vision. So it’s really understanding: what milestones do they have to hit, how much money are they raising, and can they form the right team around them to get there?

  Speaker 1:
  Segue for me to talk a little bit about Vector Launch—and I’m going to keep this as brief as I can. One of the co-founders of Vector was Elon Musk’s partner at SpaceX. So, somebody that we would back all day, every day. A great list of investors, including Sequoia. They raised $100 million over two years—but I guess launching rockets is really hard. Like, getting them into that low Earth orbit is really, really tough to do. And vaporizing $100 million in less than two years is certainly proof of that.

  Lesson learned there was actually that the lead for Sequoia was an enterprise software guy, not a rocket launch expert. And he was unable to convince his partners at Sequoia to re-up and put in another $15 million, which would have triggered a pretty sizable loan from Silicon Valley Bank—and maybe, just maybe, would have given them six more shots at launching that rocket into low Earth orbit. Anyway, it failed. We now are very, very discerning about who the lead partner is and what their track record is in that specific industry. But Jasmi, wanted to see if you had any color before I move on to the next question.

  Speaker 2:
  No, I thought that was well said—sort of separating the deal from the “who’s behind the deal,” whether it’s the other VC fund, whether it’s the board member, or whether it’s the team, whether it’s lead partner. So being able to separate those two and them standing on their own merit.

  Speaker 1:
  Yep. Next question is about previous fund sizes. Since I’ve kind of been here from the beginning, I might be the most qualified to answer that. So: First fund was approximately $5 million. Second fund, $8.5 million. Third fund was around $12 million. Fourth fund around $13 million. We are projecting that this fund will be a dollar or two bigger than our fourth fund. But actually, based on this very fast start, it could be bigger than that—it could get up to $15 million. So that certainly helps us in how we can allocate into more opportunities. Keep those dollars flowing in.

  Next question: Once invested, how will I be able to monitor my investment? How do you communicate with investors after we invest?

  Monitor: We actually have a secure investor portal that you can log into at any point and track how much capital we’ve raised, how much we’ve deployed, how the portfolio is performing overall. It’s graphically depicted. Of course, there’s a table chart that identifies when we invested, who we invested with, how much we invested, the share price, then the share price today, how long we’ve held that specific investment—and obviously any paper gains will be reflected in that table as well. Also, the diversification around stage, industry, and geography is graphically depicted in that portal as well.

  As for how we communicate with investors after you invest: We have our monthly newsletter that goes out to our general community. It’s usually reflective of the previous two investments that we’ve made that happen to have been public and that we’re allowed to share. So that’s a good way to track our monthly progress.

  But I also, with the help of Jasmi and Erik, author a semi-annual report where we take our time to give you a detailed description of how each of our companies is doing. It also kind of gives you a snapshot of performance from the portal.

  And then we have these webinars on a very regular basis. So once you become an investor, you will get invited to investor-only events that are webinars. They’re a little bit more intimate, and it’s always me, Erik, and Jasmi. And we update the portfolio on a very regular basis.

  Capital deployment period—Erik, do you want to talk a little bit about the three years and what we typically try to do in the first 12 months, and then the monitoring, the signaling, and the add-on for reserves?

  Speaker 3:
  Yeah, sure. So what we’ll do with our capital—first, reserving for fees—upfront we’ll use that investable capital to deploy into really interesting companies, as we’ve discussed. About 80% of that capital will be deployed in our primary investment period, which is the first year. That’s where we’re investing, making the first investments into companies.

  Then we’ll reserve 20% of the fund to make follow-on investments within that first three-year period. So when we look at companies coming out of our first investment, we stay close to them, watch how they’re performing against their milestones, see if anything’s signaling the way we thought it would. In many cases, we have the opportunity to invest our pro rata—which is essentially to keep our ownership stake—or we can even invest more.

  So we’ll monitor that portfolio for the best-performing opportunities in that first three-year period to invest more—take a bigger stake in those companies that are doing well and that we see on track to potentially exit down the road. So about 20% of that capital is used for those follow-on investments, and it really allows us to amplify the winners and generate better returns for the portfolio.

  Speaker 1:
  Interesting—very, very recently, Harvard Business Review actually came out with a report after interviewing like 1,900 funds, talking about the number one driver of returns—and it was that ability to take reserve capital and back your winners successfully.

  Jasmi, I’m coming to you with this. Despite being the newest member on our team, I think you have a pretty good sense of how our performance compares with other funds. Someone is specifically asking: Why should we invest in Purple Arch versus, say, Yard Ventures or Castor or Chestnut Street? I mean, besides the people on this call right now and the great personalities we have, we’re also performing really well.

  So Jasmi, if you were an investor, why would you invest with us? And in fact, you are an investor with us—why did you invest with us?

  Speaker 2:
  I think it’s good to back yourself and your school and your team. I think it demonstrates a lot of belief. I think the proof is in the pudding. I think, as someone who likes data myself, we have done well—we have outperformed. And again, that’s long before me, so that’s kudos to David and Wayne and then Erik.

  But yeah, for me as well as an investor, the proof is in the pudding. I wanted to see what deals have we done, how well have they done, and how do they compare relatively to other investment opportunities. And so far, so good—especially on the heels of BlockFi and some of these, I’m afraid, exits coming up.

  Speaker 1:
  Yes. Thank you. So I do have a specific question about IRR, MOIC, cash-on-cash returns from earlier funds. Because those things are so fluid, we don’t want to date ourselves with the information we’re going to reveal on the webinar today. That’s actually something that can be shared either by myself or the senior partner you all can book a call with. They will absolutely share our multiples on invested capital and the performance of each and every one of our funds—just not something we’ll share on the webinar today.

  So, an encouragement for everybody to book a 15-, 20-, 30-minute call just to learn a little bit more about us.

  What happens when a company in our portfolio goes public? I’ll make this a jump ball—I might even grab this one. But Jasmi or Erik, either one of you want to talk, since we do have one that’s sort of signaling it’s going to go that way?

  Speaker 3:
  Yeah. I guess first of all, we would celebrate, right?

  Speaker 1:
  We’ll celebrate with Heaven’s Door. No, it won’t be Heaven’s Door that is the company going public—but yes.

  Speaker 3:
  So, do you want to take this, Jasmi, or do you want me to jump in? Okay, so—as we’re celebrating—when a company exits, the first thing we would do is prepare an exit memo to document the exit, what went well. We’ll provide that information to our investors so you’d have a heads-up.

  The policy is to exit that position in a public company when our lock-up period expires. So when a company goes public, the vast, vast majority of the time there’s a six-month lock-up until we can sell our shares. At that six-month mark, we would exit the position and distribute that capital to investors based on the waterfall, or the capital distribution, at that point.

  Speaker 1:
  So a six-month party, which is going to require a lot of Heaven’s Door. So—you’re welcome, Heaven’s Door—that’s coming.

  So for an investor who has invested but has some additional cash become available—can you add to your investment, and when would this need to be done by?

  These are just some of our internal rules that will make complete sense here in a moment. As long as the fund is still open—meaning we haven’t formally closed it yet, we haven’t reached that 99th accredited investor—and we’re very open and very aggressive about our communication, as you’ll see, as for when the fund remains open, how many spots are remaining: So long as it’s open, you can continue to add additional capital.

  Once the fund closes—it’s over. You can obviously keep investing in future funds. That’s kind of the beauty of our model. And it’s also very smart to do that—to diversify across vintages and increase the number of venture deals that we have. Because no two vintages are going to obviously perform exactly the same way.

  With that, I wanted to thank everybody for their time today. I actually wanted this to end at 30 minutes, but we had some great questions rolling in. Please dig into our materials on our website, book a call with me or one of our senior partners if you’d like to learn more. On behalf of Jasmi and Erik, please have a great rest of your day, great rest of your week. Be well, stay safe—and go Cats.