Jeff Horing

But it's really not a big part of the portfolio.

It's not what our DNA is.

We started with growth, not saying we're only in growth, but we try to put some metrics around most of what we do.

By the way, you could see this with the secondary market.

It's a little hidden secret.

Go look at how some things trade in the secondary market.

If when you're at 70 cents on the dollar, your marks aren't on us.

We look at GDR growth rate.

Those are the two things we're going to look at in valuations.

And that could be a really disappointing three or four times revenues for a lot of companies that were backed in that timeframe where they're not growing fast and they have low GDR.

That might be low single-digit growth and 80% GDR.

So if you go into the public markets and look at those companies, they're disasters.

Few are even public today.

It was a category that early SaaS, a lot of those went public and ultimately the markets caught up to the unit economics.

PE guys are looking for long-term, this is cashflow.

We have a company which now Vista owns that has a mid 80s GDR, but its CAC is three months, which is a very low number in the world of CAC.

So you can make a 30% margin business if it's an infinitely sized market.

with a relatively low CAC.

There's an exception to everything I'm about to say, but if you're in a more normalized enterprise world, you're going to have 12 month CAC, which means it's one year upfront to get that customer on board.

And if they only last for four years, you can kind of do the math and say, well, that's present value worth maybe two and a half times to one time dollar invested.