David Frankel

One of the best instances of breaking the rules, Eric, who is the most disciplined investor in our team by far, he's created literally the infrastructure on which we all work. you know, rise. Eric looks at me on Trade Desk and goes, they're out of money if we don't invest here. They're out of money. Eric breaks his own rules so painfully so for him. I'm more opportunistic.

I go like, if we've got to do it, we've got to do it. I've got goosebumps imagining this company not existing. No reserves in fund one. And Eric invests in Trade Desk as a follow on because nobody else is going to give them money.

I go like, if we've got to do it, we've got to do it. I've got goosebumps imagining this company not existing. No reserves in fund one. And Eric invests in Trade Desk as a follow on because nobody else is going to give them money.

I go like, if we've got to do it, we've got to do it. I've got goosebumps imagining this company not existing. No reserves in fund one. And Eric invests in Trade Desk as a follow on because nobody else is going to give them money.

It was like somewhere between half a million and a million. Whatever we did, it felt like a lot. In fund two, we created a reserve strategy because, and it was that negative correlation bias that made us do it.

It was like somewhere between half a million and a million. Whatever we did, it felt like a lot. In fund two, we created a reserve strategy because, and it was that negative correlation bias that made us do it.

It was like somewhere between half a million and a million. Whatever we did, it felt like a lot. In fund two, we created a reserve strategy because, and it was that negative correlation bias that made us do it.

We went, if we're going to put in like another 50%, we won't lead ever, but if we're going to put in another 50%, like how do we do that only in our companies that like crave and need the money?

We went, if we're going to put in like another 50%, we won't lead ever, but if we're going to put in another 50%, like how do we do that only in our companies that like crave and need the money?

We went, if we're going to put in like another 50%, we won't lead ever, but if we're going to put in another 50%, like how do we do that only in our companies that like crave and need the money?

Yeah. I'll tell you what happened is we put in a reserve strategy where we said we won't fund if it's more than 20 million post. But then what happened is the market just went away with it. That became anachronistic. So you create these rules and then the market moves.

Yeah. I'll tell you what happened is we put in a reserve strategy where we said we won't fund if it's more than 20 million post. But then what happened is the market just went away with it. That became anachronistic. So you create these rules and then the market moves.

Yeah. I'll tell you what happened is we put in a reserve strategy where we said we won't fund if it's more than 20 million post. But then what happened is the market just went away with it. That became anachronistic. So you create these rules and then the market moves.

And in a way, like what you have to do is two years later, you have to try and change those rules altogether again based on what the market's doing. So now today, how does your reserves look? We still have this kind of one-to-one reserve policy, but we actually struggle on our reserves because a lot of the time our good companies- I just don't understand.

And in a way, like what you have to do is two years later, you have to try and change those rules altogether again based on what the market's doing. So now today, how does your reserves look? We still have this kind of one-to-one reserve policy, but we actually struggle on our reserves because a lot of the time our good companies- I just don't understand.

And in a way, like what you have to do is two years later, you have to try and change those rules altogether again based on what the market's doing. So now today, how does your reserves look? We still have this kind of one-to-one reserve policy, but we actually struggle on our reserves because a lot of the time our good companies- I just don't understand.

I'll tell you what happened, Harry. This is how this moves. During COVID, we got very scared. At the beginning of COVID, we went, oh my God, the market's going to close down. We're going to really have to fund our companies. So then we're thinking we've got to, in the first instance, put even fewer funds into our companies. And then what happens is the market just gets awash with capital.

I'll tell you what happened, Harry. This is how this moves. During COVID, we got very scared. At the beginning of COVID, we went, oh my God, the market's going to close down. We're going to really have to fund our companies. So then we're thinking we've got to, in the first instance, put even fewer funds into our companies. And then what happens is the market just gets awash with capital.

I'll tell you what happened, Harry. This is how this moves. During COVID, we got very scared. At the beginning of COVID, we went, oh my God, the market's going to close down. We're going to really have to fund our companies. So then we're thinking we've got to, in the first instance, put even fewer funds into our companies. And then what happens is the market just gets awash with capital.

Everyone's day trading. And of course, we run Raise Fund 4 prematurely. So I would say reserves and how to do the reserve thing is actually one of the most challenging aspects of venture. How to get it perfectly right? Pretty tough.