Bryan Cantrill

And so there were opportunities that were more straightforward.

And then what we ended up landing on was a tranche structure that kind of struck the midpoint, sort of the balance of what we believed in terms of the momentum of the business and where we were and where one might try to price things at that exact moment.

So basically it takes the size of a round and it divides that up in, you know, I guess it could be multiple...

And maybe oftentimes the life sciences is where it is.

If and as you get to this particular breakthrough in a particular research area, you can kind of unlock higher values of the company and or unlock the capital.

That's right.

33%.

Yeah, right.

And so maybe it preserves a little bit of optionality from an investor perspective, but it gives that research firm, or in this case, the company, the ability to better themselves a little bit.

That's right.

And the risk associated with that is maybe if you are not able to hit those milestones, then...

you in some cases do not get access to capital.

In other cases, maybe you end up with a value that is not representative of maybe a point in time negotiated value.

Um, and in our particular case, we were not going to agree to anything that was going to put at risk the capital.

That's right.

So we, you know, we were not going to be a regulatory milestone and we had opportunities to go raise the fullness of the round, uh, at, at terms that I think relatively speaking were fair.

Um,

But in this structure, it allowed us to bet on ourselves a little bit and say, you know, we'll take a portion of the round at this current valuation.

And then if we hit a milestone, then the second portion of this round will be at a valuation that we think is fair, given the momentum of the business.

At the original number.