Nathan Latka

Yeah.

So I want to teach founder, since we've got your perspective on the podcast today, you know, if we took a 1.5 million average check size times your target in terms of life of the fund of 25 deals, right.

And it's, you know, it's 76 million total fund.

Well, 1.5 million times that 25 target deals, you know, uses what about 37.5 million of the total capital, right.

You then obviously are reserving for the 3 to 5 million sort of pro rata we just discussed.

I think a lot of founders, when they meet a VC, they don't know how to ask questions like, hey, Mr. or Mrs. VC, if we crush it, how much are you reserving for us in the future?

What are some really smart questions you hear founders ask you in terms of how you think about deploying capital into the future?

Are you doing sort of safe or priced rounds?

What should a founder expect to pay in terms of legal fees if you're doing a priced round?

Yep.

And how do you, in terms of the money you guys spend on your legal team to redline back and forth with the founder, does that usually come out around 10, 20, 30K?

Or for a 1.5 million check, what does that look like on your end?

Yeah.

And you obviously pass that $10,000, $25,000 cost off to the founders if the deal closes, they cover the legal.

Do you have a target percentage ownership you want with that initial check size?

Okay.

So, I mean, is it fair to say then if someone's looking for a valuation higher than 15 million, right?

If you're writing 1.5 check to get the 10% post money, it'd be about 15 million.

But if they're valuing those above that, they would not be a good fit for emergent because you can't hit your equity target.

I love that statement.