Alex Rampell

Our job is to find these people, give them money.

It won't always work, for sure.

But I actually don't agree that 11 was a non-consensus deal.

If it was a high enough price, if it was not a seed, if it was like, okay, it's a Series B, they have half a million dollars in revenue, and it's shrinking every month, yeah, of course, it's not going to be consensus.

I agree.

At some point, reality converges with reality.

My kids and I have been watching Silicon Valley, the show, and there's that famous scene where it's like, the Mark Cuban character is on the phone and he hears revenues.

No, no, no, you can't do revenue.

You have to be pre-revenue because then you're a pure play.

So there is this element.

I mean, the way to explain this financially is we buy out-of-the-money call options.

You know what a call option is, right?

We are buying out-of-the-money call options, and we hope they expire in the money.

Because this is how I explain to people why it is that a Series A that has $1 million in revenue and is losing $10 million a year is worth $100 million.

Of course it isn't worth $100 million.

What you're doing is you're buying 15% or 20% of the company.

and hoping that eventually your call option expires in the money.

That's the thing that you're doing.

Eventually, that value converges on the equity value.

It's like, oh, what's the discounted cash flow, blah, blah, blah, blah, blah.