Martín Escobari

We take on a lot of risk, macro risk.

We take on a lot of technology risk because we are investing across what we call 18 power alleys that cut across five sectors.

Guess what our loss ratio is?

Tell me.

4%.

On capital or on?

On capital.

On capital.

On capital.

In venture and growth equity, loss ratios of 20% to 40% are common.

But there's something about the way we deal with risk that allows us to capture what we think are reasonably good returns.

And that's surprisingly low risk ratios.

And it has to do, I think, with an appetite for risk.

We don't take binary risk.

For us, when we do this sort of the scenario planning of three to 1,000 scenarios, one does in one mind like you do when you think of an investment.

For us, a worst case scenario, a company grows into the valuation we paid for it.

And that limits what you do.

It limits the timing of where you go into a new industry.

You probably leave some money on the table, but you also leave a lot of risk on the table.

And that product of reasonable returns with low risk is a great product.