Sramana Mitra: And what is your assumption when you make an investment like this? What are the trends? Is there a number that you are using to calibrate how much new home building is happening now in this format? Heriberto Diarte: We studied this for one year. I helped this company launch many years ago,
Sramana Mitra: In other words, you’ve structured the funds to play the small exit game as opposed to just mindless unicorn chasing. Heriberto Diarte: Yes. We want the unicorn. Don’t get me wrong. We want the big company. So we’re going for that, but for all of our companies, we have an intermediate stay, but
Sramana Mitra: So you talked about the stage at which you like to come in. What check sizes are you writing? Heriberto Diarte: $2 to $5 million. We can go up to 10, but we normally do $2-$5 million, and then we reserve 40%. Sramana Mitra: And so $2-$5 million is in seed and Series
Sramana Mitra: Very good. So, folks, those of you who are listening, I want to just highlight one thing that Heriberto Diarte said earlier, that his VC fund is not interested in these shallow wrappers. Now, at 1M by 1M, we don’t mind wrapper companies because wrapper companies actually do fine as bootstrapped businesses. They
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