Operator: . Our next question comes from Ryan Lynch with KBW.
Ryan Lynch: First question I had was, I think you kind of sort of touched on it earlier. But can you just explain why your — why both your debt and your equity warrant portfolio valuation held up so well this quarter, kind of just in the face of kind of a challenging venture capital marketplace.
Seth Meyer: Yes. So thanks a lot, Ryan. I think that when you dig into the detail of our movement, you’ll see that the public equity positions moved up. So that’s just driven by the public markets where they landed at 12/31 whereas the private positions move down by almost an equal amount. That was obviously a coincidence. There’s different quantums of those positions. And what we’ve always seen is that the private positions typically trail about a quarter behind the public positions. And so it’s not uncommon that we have those move in different directions or differing quantums because of that delay of the impact to the private markets.
Scott Bluestein: And Ryan, I would just add, as Seth mentioned, the biggest driver on the upside was the public equity position. And if you just look at some of our larger public equity positions quarter-over-quarter from where they started Q4 to where they ended, the vast majority of those larger positions were up, and that was the largest driver of the overall movement in unrealized depreciation.
Ryan Lynch: Okay. That’s helpful. And then going back to just the overall environment. You guys talked about on the call, there’s been a lot of venture capital fundraising in 2022. I think it was a record year. But if you look at the venture capital investment, while it was healthy in 2022, there was a pretty sharp decline throughout 2022, bottoming with the fourth quarter, I think, of like $36 billion. And then also, when you look at venture capital exits, they have really kind of dropped off a cliff, and I think they were down to about $5 billion in the fourth quarter. And so my question is, while there’s been a lot of capital raised in venture capital firms in 2022. How do you feel — how active do you feel they’ll be if exits and they’re not receiving their money back if exits stay kind of at these very low levels.
Scott Bluestein: Sure. Thanks for the question, Ryan. So a couple of things. And I had mentioned this in response to one of the earlier questions. You can look at the 2022 investment data one of two ways. We chose to look at it as very strong and healthy, $238 billion invested by VC firms throughout the course of 2022, down year-over-year from the record in 2021 but the second strongest year on record. And for us, despite the fact that it’s down year-over-year, that still reflects what we saw in our own portfolio in 2022. With respect to funds raised, that was a record number, about $163 billion raised by venture capital firms in 2022. When VC firms make investments, they’re not anticipating an exit in 3 months, 6 months or 12 months.
These tend to be longer-term investments. We are very optimistic about the future of the venture capital ecosystem. And based on the conversations that we’re having with our portfolio companies, with the venture capital firms that back our portfolio companies, we believe that 2023 will represent an uptick with respect to VC investment activity across the ecosystem.
