David Rosenthal: evaluation

Transcript context

…Yeah. The technicality is 25% of any fund. You could have $1 billion under management, but if you have a one fund that's a $30 million fund, and if 25% of that one fund happens to be secondary, then that triggers a registration requirement for the entire platform. That’s the math, $30 million, 100% of its secondary, so that triggered the registration. Because we had done that for Woowa Brothers, that's what allowed us to do all those other Roblox SPVs. Now, before this Woowa SPV, that was the 6th fund that had invested in the Woowa Brothers. I didn't tell that part of the story. We were investing fund after fund after fund into Woowa Brothers. Canonical VC dogma from LPs, but I think VCs also believe this—cross-fund investing is a no-no. It’s a no-no. People really don't like it. When we first started doing this, that's because we were just not very good fund managers. A lot of times you do it because you're just not doing a good job of reserving. If you run out of money, we run out of money. We were like, we can't support our companies anymore. We had to beg our LPs, like can we maybe use our new fund to help support some of our older companies? We did that, and LPs didn't like it, but they gave us a little rope. They said, okay, you could do a little bit, but we're watching you. Our eyes are on you.…

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