Today’s guest is Juan Scarlett, a technology-focused venture capital, strategic finance, and equity research professional. He is the Co-Founder and Managing Director of OneValley Ventures, an early-stage investor in dynamic founders emerging from the OneValley ecosystem and its partners.
Juan talked about his practical upbringing that led him to follow the most practical path in his education and career and eventually to venture capital. He also shared his experiences at Haas, what made him interested in investing and venture capital and his work at OneValley Ventures.
We also discussed why investors should break the status quo and go outside their networks and invest in underrepresented and underserved founders.
On growing up in a hardworking and practical family
We really worked hard to make sure that we had everything that we needed and, maybe, a few of the things that we wanted. And for those other things you wanted, it was very clear that, from a very early age, you have to go make your own money to do those things.
Why he left investment banking
It’s great money. It’s got to be a good experience. It’d look great on my resume. But I know I’m not going to enjoy it. I know I won’t love it. And so, I just decided (to leave).
I already learned that doing something that you don’t enjoy was not going to be fulfilling for you or for the company that you were doing it for.
On breaking the status quo to help minorities develop pathways into VC
During 2022 and ’21, during the racial justice movement, we started to see that people were much more willing to take that chance to invest in minority founders, ones that they didn’t know or came outside of their networks. We started to take that chance. But there wasn’t a follow-through, necessarily, in 2022.
And so, I think you still have to just continuously remind people that that issue is still there and that it does require a little bit more work to find interesting startup opportunities to invest in outside of your small-ish network, and really develop broader top of funnel with the mindset, “Well, if I want to find these minority-led startups where they are, I have to be there, too.”
(Transcripts may contain a few typographical errors due to audio quality during the podcast recording.)
[00:00] Sean: Welcome to the OneHaas Alumni Podcast. I’m your host, Sean Li. And today, we’re joined by Juan Scarlett. Juan is from the class of 2001, and he is currently managing director at OneValley Ventures. Welcome to the podcast.
[00:14] Juan: Thanks, Sean. It’s a pleasure to be here.
[00:16] Sean: Juan, to start off, we’d love to hear about your origin story. So, start us from the beginning. Tell us about your family, where you grew up, how you grew up. Start there.
[00:26] Juan: So, I grew up in Daytona Beach, Florida, which is a small mid-size town in Central Florida. Oldest of four children. And I grew up in what I would consider to be, certainly, a very loving and hardworking and very practical family.
We were, I’d call it, lower-middle income, upper lower income kind of thing. My parents were very hardworking. And we really just worked hard to make sure that we had everything that we needed and, maybe, a few of the things that we wanted. And for those other things you wanted, it was very clear that, from a very early age, you have to go make your own money to do those things.
I always grew up with that in mind, that, well, I always need to make sure that I’m making money to do the things that I want to do and to make sure that I can take care of the things that I need to do as well. And so, that was the first lessons that I learned at a very early age. And I know it certainly stayed with me and, probably, the reasons for a lot of the different things I’ve done in my career, but also, just in my life, in general, still have very much such a practical creature about me. But I would say that, the older I get, the more open and risk-taking I have been. But a very practical upbringing, I would say, that was a precursor for a lot of other things in my life. Hard work was always there.
The key thing, and always came before fun, and my mother always stressed hard work, higher education, and then religion. So, again, I did grow up in the South. So, religion was a big part of my upbringing as well. I’d say the hard work and the higher education stayed with me more than the religion, as I matured myself. That was just a life choice. I’d say I enjoyed my upbringing and, obviously, love my family. But I was also very eager to get out of Florida once I had an opportunity to do so, really, after college.
[02:14] Sean: So, it looks like, for undergrad, you studied accounting. What led you into accounting? How did you choose that?
[02:20] Juan: So, that was that practical upbringing. I think I knew, at a fairly early age, that I wanted to be in business in some form or factor. It wasn’t clear what that was. As a high school, I didn’t know necessarily what I wanted to do in business, but I knew that I wanted to be in the business world and, probably, somewhere in the financial world. And I think, when I started studying majors and then thinking about the career paths following those majors, it felt like the accounting major would give me a nice base for a career in business and give multiple pathways out of that major.
In terms of my decision to attend Florida A&M, which is back university, I think, for me, it was a very personal one. So, again, coming from a very practical family, we were very much cognizant of the cost of attending university and making sure that I had financial support to do so, either in the way of scholarships or loans that I would have to take out to support my education.
And so, a lot of my focus for my undergraduate university was on public universities, good public universities, mostly in the South. And I ended up, I had some members in my family, including my mother and stepfather, who had gone to Florida A&M but didn’t graduate when they were younger. And I had gone to visit Florida A&M, and I just fell in love with the campus and the student body.
And certainly, the comfort of being around students who look like me and who had similar upbringings as me was a very big deal because I had spent my middle school and high school years and getting busted out of my neighborhood to other schools that were predominantly white, for the most part, I would say. And so, I really wanted the opportunity to be in a learning environment that more diversity emotions that looked like me in the classrooms.
And so, that was primarily what led me to Florida A&M. And they had a great undergraduate business school, the School of Business and Industry, that was highly regarded and had developed these amazing relationships with Fortune 500 companies all over the world that would come to recruit on campus.
And I thought that, one, they had done a great job of developing pathways for aspiring professionals to enter corporate America. And I feel like that was something that really drew me to the university. And actually, that idea of the way that school developed their pathways to corporate America, that’s the same function that, I think, needs to happen with the VC industry and the startup world. Again, you have to be very intentional about developing these pathways and finding minority professionals where they are. And a lot of times, that means you have to go outside of your own distant networks to do that. I do think some companies have gotten better about doing that.
So, I graduated. Once I graduated with my undergrad from Florida A&M University, I had a great offer to join Arthur Andersen. They were one of the top firms at that time. And had a great opportunity to join them, work with Arthur Andersen in Atlanta, jumped at the opportunity to do that.
And listen, I loved working at Arthur Andersen. Loved the people that I worked with, learned a lot, I think, over the several years that I was there. But as you note, it’s still accounting and it’s a lot of financial statement reviews and audits. And at least at that time, Atlanta was a business center for the South, but was very different than what it is today. It wasn’t tech center, it was more manufacturing, utilities, some telecom. And so, that was a lot of the companies that’s auditing and doing reviews for at the time. So, it’s very boring, static work, that, I think, over time, I just came to, not really enjoy as much.
And also, really, I didn’t think it was as impactful to the businesses that we were working with at the time. I think they’ve grown now to develop more services around audits and reviews. And while those are still necessary functions, I think they’re trying to make those more impactful. At the time, they were very straightforward. And I got to a point where I didn’t think I was learning as much, and I wanted to learn more.
And interestingly, in the same way that you change your major, got a new breakthrough in your undergrad, I learned that lesson while I was working out Arthur Andersen, like, you know what? I really don’t accounting so much. But I still love corp finance, and I really think I like investment banking, which I had some exposure to on the kind of projects that I worked on while at Arthur Andersen with investment banks.
[06:52] Sean: And I do have to ask you. I saw that you did your internship at Citi — your summer associate internship — at Citi in New York, and you were living in Atlanta before you started school. How did you come to cross coast and pick Haas?
[07:06] Juan: Again, growing up in the South, the South was all I knew. I knew Florida and I knew then Georgia after undergrad. And while I had traveled a little bit around since, I don’t think I had been to California, yet. Well, actually, that’s not true. I’d been once on a family trip.
Again, while I was coming through Arthur Andersen and getting to the realization that I didn’t want to do that the rest of my career, as I started to think about investment banking and going back to business school to do that, I was focusing, initially, on, primarily, East Coast schools that were big finance-centric schools. And so, all of those big names were on my list. And I applied, I think, to five of them and got into, I think, four.
During that process, my family was living in California. And they were like, “Hey, there’s two great business schools out here — actually, three great business schools out here. We won’t mention one of them. But there were two. And there were public universities that were great, had great business schools.” And so, I was like, “That’s interesting. I hadn’t thought about that.” And then, as I started thinking about it more, I was like, “Well, that’s even way more interesting because I actually also want to get more exposure to technology.” And guess where everything was happening in the tech world at that time. And this was 1998 when I was applying, really developing that list.
[08:22] Sean: Great Bubble, yeah.
[08:24] Juan: Yeah. And so, it was everything you heard about technology was coming from the Bay Area. And so, it was like, well, that’s interesting because one of the schools that I was starting to think about was in the Bay Area. And I said, “Well, I need to look at this more.” And as I started to look at Haas more and more, I really started to really like and eventually love what I was seeing. And then, when I visited, actually seeing and feeling it in person, it was like, “This is the school. This is where I’m going.”
So, really, it was this really big change from my initial focus from, really, East-Coast-focused, investment-banking, corp finance focus, to Haas, which is not very finance-focused in terms of business school. It’s just not as big as it is in the schools back at East Coast. You go to school, and 80%, 90% of the students are focusing on careers in finance, consulting, or investment banking. At Haas, it was almost like the opposite. When I came to Haas I said, maybe only 20% of the school is actually interested in investment banking and finance, and I think maybe even lower. Because, I was actually the head of the finance club, the corporate finance club at Haas. And I think we may have had 25 members of the 240 people in our class and 480 in the entire school. So, it was a small club.
But that was pretty interesting to me, too, because I was like, “Well, I don’t want to go to a place where everyone else is doing the exact same thing as me. I want to go to an environment where people are doing all kinds of different things, people that are coming from healthcare, people that were more interested in technology, product management, and who already had business ideas they were developing, and people that were interested in biotech.” And so, I was that just seems way more interesting to me as a learning environment than an environment that was really more focused on, really, one or two dominant job areas.
And so, those were the two big things, I think, that were really a big deal for me when I started to look at business schools, and then when I really started to key in on Haas, the first two big things.
And the third was, really, just that feeling of community. It was just so different. When I visited several of the schools, the feeling that I got from being on those campuses and talking with the other prospective students and current students was just completely different. When I came to Haas visitation weekend, i immediately started falling into these friendships and cool conversations and immediately started going, “Hey, what are you doing tomorrow? Let’s go for a hike. And then, we’re going to do this thing. And then, we’ll do that thing,” where everything else was just very, “Hi, my name is so and so. And here’s my background and my professional background and what I’ve done.” Haas was just so much different. It felt very different to me. I think it was just so much more comfortable to me, and I really enjoyed that.
[11:01] Sean: I’m really curious how you went from that to venture capital, if you could walk us through that post-MBA life.
[11:23] Juan: Yeah. So, it’s interesting. I always tell people who ask me about venture and how I got to venture that it always feels like almost everyone’s pathway to venture is different. There certainly are some, I would say, some defined pathways into venture. There’s a couple of defined pathways into venture that everyone knows about. Successful startup founder who decided just wanted to get into investing and used the founding of a startup to make your way into venture. Or, you worked at, or you worked at an investment bank that then gets you an opportunity, maybe, in corp development startup that then leads you into venture as well.
Those are a couple of pathways that are pretty defined pathways for venture. Or, obviously, there’s also the technical side of computer science engineering. And again, either launch a company or work on a company that’s indicating more progressive leadership roles. That’s another way to make your way into venture.
I didn’t do any of those. Despite, again, going into grad school, looking originally at investment banking and corporate finances being my original focus, having done an internship during my first and second year in grad school at Haas, I realized during that summer that I don’t think investment banking is great for me, either. I was told at the time that I was fortunate to actually get put on some live transactions that were happening that summer, because again, this was summer of 2000. So, there weren’t a whole lot of live transactions happening in summer of 2000.
[12:58] Sean: They just needed hands, warm bodies, I feel like.
[13:02] Juan: Well, the IPO market had started to dry up at that point.
[13:06] Sean: Oh, really? Already?
[13:07] Juan: Yeah. So, that summer, the IPO market had started to dry up. Actually, March of 2000 was when everything started to collapse. And so, the stock market had peaked and dived that March. And then, that summer, we could already see the IPO pipeline starting to dry up. And again, I was at Citi Salomon Smith Barney, and we were 120 interns, probably, I think in different business schools.
[13:32] Sean: Jesus, wow.
[13:33] Juan: Across the bank. Not all in i-banking, but I think 60 or 70 of us were in i-banking. But they had a massive… And a lot of the other interns were just having a great summer, really enjoying New York. Human resources group had all these different activities that a lot of the interns were able to do. But I was on several live transactions that summer in investment banking, so I was not involved in any of those things. I was always at my desk, working or waiting for a phone call to give me more work that I knew was coming that didn’t come usually until 6:00 in the evening. And then, it meant that I had to work overnight to actually get that thing done.
And so, I fell out of love with investment banking, I think, at that point. And I started to think, well, maybe this is it for me, necessarily. But then, the practical side of me started saying, well, got a great job offer here to come back after I graduate. It’s great money. It’s got to be a good experience. It’d look great on my resume. But I know I’m not going to enjoy it. I know I won’t love it. I know I’m not going to really enjoy that several years that I ended spending there.
And so, I just decided. And that was partially the Haas in me at that point. I had been at Haas for one year. I already learned that doing something that you don’t enjoy just was not going to be fulfilling for you or for the company that you were doing it for or if you started a company, your own company. In my first year, I learned at Haas, either from my coursework or probably more from my colleagues and students. So, I just decided that, that was the first big change in my thinking, I think, in terms of my professional career. Well, I want to make sure it’d be something that I enjoy and that I still have time to actually enjoy things outside of work as well. And I knew that wasn’t going to be just the start of my career.
And so, when I got back to Haas after my summer internship, I started looking into different pathways, really, again, to stay in corporate finance, but not necessarily investment banking. So, I was like, well, maybe I’ll look for a company in corporate finance. But at that point, the pathway there was still going through investment banking and then jumping over into working for another company.
And then, I said, well, actually, I had a great class my second year, first semester. It was an investment course. It was at night with. I think it was an evening MBA course, but it was available to the Full-Time MBAs as well. And it was an investment course taught by two professionals who were Haas alums. David Stadlin was one. He was portfolio manager at Weintraub Capital at the time, basically, a hedge fund and investment public equities. And the entire course was just about, here’s how you actually take what you’ve learned your first year of business school and apply it to actual investing in stocks. And in terms of like, well, I had done some of my own investing in stocks and I thought I knew what I was doing there, and I really didn’t. But I thought I knew what I was doing. But that investment course really opened my eyes to, well, wait, this idea of public equity investing, investing in general as a career, was even more interesting, I think, than investment banking. Because, investment banking, I was thinking, was… I had always thought of it as, well, I’ll go into investment banking, I’ll work in investment banking, and maybe make it to a vice president or director and then lead to go to lead a finance department or be a CFO at a company. That was the original thought.
But with that class, I enjoyed so much the discussions that we’re having and researching stocks and researching companies, that it changed my thoughts around what I wanted to do personally. And so, that was really where the initial investing, really hardcore interest in investing, started and really started to nurture at that point. And then, coming out of Haas, I had a couple of opportunities to work in public equity investing and thought that would be interesting to do as well, particularly if I can focus on one specific sector and develop an expertise in that sector.
And that ended up being enterprise software, which was great, because again, that was key core technology area at the time that still is, that evolved to cloud software now and now AI machine learning. But that was my initial foray into technology and into investment at the same time. And then, while doing that, I started developing interest in venture capital as well, because I covered the enterprise software sector broadly for Dan Russell Wessels, then Kent Ardenson Capital. And they actually had acquired Dan Russell Wessels, covering enterprise software for that bank.
The core of our coverage was really focused on public stocks, but we also had to develop competency in late-state private companies who would potentially be public companies in the near future. And so, I started to really develop this capacity to understand what was happening in late-stage venture capital, initially. And that’s where I really started to develop an interest in venture capital, hey, this is a lot of very similar things to what I’m doing now. I’m spending all this time developing real deep knowledge of this sector, the technology product, market, competitive environment, etc. to really make a buy-sell, hold call on stock, which was great. I enjoyed doing that. But then, I started looking at, well, how is that different than venture capital? There’s a lot of similarities, but you’re also working directly with the founders and executive teams of these companies to make the companies better.
And that sounded way more interesting to me. And so, after working public equity something for around five years, I had an opportunity to jump over to, at that time, we call it, buy side versus sell side. I was on the sell side, which was investment bank/research side, which were selling ideas to someone who’s going to buy them. Buy side were who were actually investing.
And so, I had an opportunity to make the jump to buy side and really focus more on private investment with venture capital, which is an interesting institution itself, this interesting area of venture capital that was combined debt and equity, both loan, startups money, but also, you can invest in their equity directly as well. So, that was my first real job in venture after having developed an interest in it while working on the public investment side.
[19:51] Sean: That’s amazing, Juan. This whole time, I have this burning question, as with many MBAs do. And maybe, I’m biased because, when I say many, a lot of the people that I know that went to the MBA with me, especially these days, want to get into venture capital. And that’s typically a burning question, like, what is the path to venture capital? And that was my question for you. But upon hearing your story and your background, it made me realize you took the most practical path to venture capital. The arc makes so much sense. You go from accounting to IB to public equities. And from public equities, you got exposure to private equity at a later stage. And then, you worked yourself backwards from later to earlier.
[20:54] Juan: You’re 100% right. Again, I started by telling you I had a practical upbringing and how that impacted a lot of different things throughout my life and throughout my career as well, including, again, my pathway to venture capital. You’re absolutely right that I did, a number of times, think about jumping into particular startups. But I thought particularly that were interesting and/or potentially helping friends actually launch their startups. But in almost every case, I always had my mother’s voice in the back of my head, saying, “Well, if you don’t have a salary, then you’re not going to be able to pay for this and this and this. And how long can you go without having a salary?” And so, I would always sit down and do that math, like, well, realistically, how long could I survive without a stable salary living in the area? At that time, this was mid-2000s, late 2000s, when I was really starting to explore things like that. And at that time, it certainly wasn’t as expensive as it is now, but it was still way more expensive than a lot of other areas of the country. And so, it was always like, well, I don’t know, maybe it’s not a great time to do that.
And then, there would also always be something interesting that would happen along the way. Again, I started to really think about this in 2006, ’07. But then, also we had the financial crash in 2007 and ’08. It was not a great time to jump and try to… I didn’t think at the time it was not a great time to not have a salary. Although, there’s a school of thought that says that, during those times, it’s actually the best time to go and take those chances. And sometimes, I look back on that and I think, well, I regret maybe not doing one of those, but I’m certainly happy with how my career has evolved over time, the things that I’ve made in my career [inaudible 00:22:25], the stops that I’ve made in my career, all is certainly very educational for me.
[22:43] Sean: An article I read recently, the title was, “The Relationship Model is Killing Venture Capital.” It was an article talking about social and racial homogeneity in the VC industry, how, even though there were these huge boosts in funding for underrepresented and underserved founders in 2020 and 2021, that has dramatically scaled back in late 2021 because of the economy and whatnot. And I’d really like to hear your thoughts on that. How do we pick teams as investors and really get out of your own bubble, your relationship bubble, of like-minded or people that look the same?
[23:34] Juan: So, there’s a couple of different factors there. It’s a very complex issue, but some of the key factors that I always like to highlight that I think are pretty important, and one that you highlighted, which is that one of your own insular networks and relationships. VC firms are inherently fairly small organizations, for the most part. The majority of them are less than 10 people. A lot of them are really less than five. But they’re also processing lots of information and lots of data. You’re seeing lots of startups in early stages. You’ve seen thousands of startups every year. And you’re processing thousands of startups.
And so, part of the reason that there is this, I don’t want to call it an easy-out, but part of the reason that a lot of VCs will only look at their networks is because it’s a little bit easier for them to pair down what they think might be higher-quality opportunities if they came from their existing network that they trust. Obviously, if you know someone, you’re more likely to trust that person, trust that they might be successful in their venture if you already know them well. And that, certainly, is a major issue, certainly both in the VC community, but also in the tech community as well. But in the VC community, that’s a major issue because, historically, so much of the VC industry was concentrated certainly right here in the San Francisco Bay Area, in a really small area in Palo Alto. So, if you were outside of that ecosystem, outside of that tech bubble, it was hard to get access to it.
And I think that that still continues in some ways. I do think that, that improved a little bit during the COVID crisis, if there was a good thing that came out that. During that time, we also had the big racial demonstrations around the George Floyd killing and racial injustice. And so, during that time, I think it gave people time, both while they were sitting at home and they couldn’t leave to say, “Oh, wait, I don’t have to make people come to me on Sandhill Road, or even more, in San Francisco. I can get on a Zoom or a Teams or whatever call and I can talk to people across the country, even across the globe to find interesting entrepreneurs.” So, I think that started to change a little bit during that time as a stock. And that’s a problem. I think the numbers tell us right now that, at least in 2022, by and large, the VC industry reverted back to pre-2020.
[26:07] Sean: Status quo, the one thing that Haasies hate.
[26:10] Juan: Yeah. And that was the fear. During 2022 and ’21, during the racial justice movement, we started to see that, well, people were much more willing to take that chance to invest in minority founders, again, ones that they didn’t know that they came outside of their networks. We started to take that chance. But there wasn’t a follow-through, necessarily, in 2022.
Similarly, for VCs themselves, for minority VCs themselves, you saw the same thing. You saw the influx of capital and of programs to help minorities develop pathways into VC and even launch venture capital firms themselves. But fundraising, again, has swung back to its status quo as well. And so, I think you still have to just continuously remind people that that issue iis still there, and that it does require a little bit more work to find interesting startup opportunities to invest in outside of your small-ish network, and really develop broader top of funnel with, really, the mindset, “Well, if I want to find these minority-led startups where they are, I have to be there, too.”
[27:18] Sean: Juan, please tell us a little bit more about OneValley Ventures and what that’s about.
[27:22] Juan: Yeah. So, OneValley Ventures, we’re a pre-seed and seed stage venture capital fund based in the San Francisco Bay Area. We invest across North America and LatAm today. We think our next fund will likely to have an even larger global footprint. But we primarily invest, thematically, in early-stage companies that are really developing next-generation technologies, like AI, machine learning, automation, robotics, no-code, etc.
But we are affiliated with the OneValley Startup and Entrepreneurship Acceleration Platform. That platform’s been around for about 10, 11 years. We’re really supporting founders all over the world with a variety of different resources. OneValley has developed a platform called Passport. That’s a digital platform that supplies entrepreneurs with access to mentors and advisors, access to an investor network, access to a massive knowledge base of educational materials. And then, OneValley, also, white-labels and sells its platform to other ecosystems who want to activate and manage and support their own ecosystems. So, think universities, other large investment platforms, accelerators, and then foundations as well. That’s what the OneValley platform is. And in total, today, OneValley touches about 300,000-plus founders, both, again, directly and through the white-labeling platform for other groups that are supporting founders in their own ways through the OneValley platform.
Several years ago, I met the team, the executive team of OneValley, and we started talking about, well, what might it look like to go and start investing in some of the best and brightest companies that we see coming through the OneValley ecosystem? There’s this massive group of founders from all over the world are coming through today. Why shouldn’t we look through those founders and see who some of the most interesting founders are who are pursuing really big ideas?
And so, we started to think about, well, what stage do we want to invest in those founders? And since we were seeding at the very earliest stage, we started to think, well, what kind of competencies could we develop to invest in those companies at that stage? And one of them was, one, hiring a venture capital professional to come on the team, which was me. So, I joined forces with the OneValley team back in 2020 to start to plan and launch and lead what eventually became OneValley Ventures. And then, we launched the OneValley Fund in 2021. And we started actively investing in startups in the year 2021. And we currently have 13 portfolio companies. We’ll likely double that this year because we’re picking up the pace of investments that we’re making.
We are super excited about the portfolio that we’re building, and we’re super excited about the OneValley ecosystem. And some really interesting nodes that we’re going to start valuing up as well in 2023, we think, well, again, start to scale the ecosystem and the investment side [inaudible 00:30:20]. Super excited about that. Really, founders who are interested, reach out to me as well. My information is actually on onevalleyventures.com. So, please, reach out.
[30:44] Sean: I’m going to ask a question, on any entrepreneur listening’s behalf, how big is the fund? And how far along in the fund are you?
[30:53] Juan: So, we’re still fundraising. We’re $25 million target. We can continue the first close, again, stocks in 2021, brought in some additional capital. Let’s say, so, again, we’re only a year and a half into actively investing the fund. Again, only 13 portfolio companies. We expect to have close to 60 portfolio companies when we’re done. So, we have several more years investing out of this fund. Now, we may start fundraising for fund two in another year and a half or so, or maybe sooner, again, if we pick up the pace even more. I’d say we’re still very much in the early stages of this fund’s life cycle. We’re only a year and a half, basically.
[31:36] Sean: Perfect.
[31:38] Juan: And funds are 10- to 12-year entities, and we’re only basically a year and a half.
[31:44] Sean: Right. That’s exactly I’m sure what everyone’s wondering. So, if you’re a Haasie entrepreneur listening, please reach out to Juan.
[31:51] Juan: Please, do.
[31:52] Sean: Really appreciate having you on today.
[31:42] Juan: Thank you.