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    WATCH: Tech Crunch SF Disrupt 2019: Day two October 3, 2019

    October 12, 2019


    . >>>LADIES AND GENTLEMEN, PLEASE SILENCE ALL MOBILE DEVICES. THE PROGRAM IS ABOUT TO BEGIN. . >>>LADIES AND GENTLEMEN. PLEASE TAKE YOUR SEATS. THE PROGRAM IS ABOUT TO BEGIN. . >>>LADIES AND GENTLEMEN, PLEASE WELCOME, TECH CRUNCH EDITOR AND CHIEF MATTHEW. >> [APPLAUSE]. >> GOOD MORNING. I’M NOT SURE IF THIS MICROPHONE IS ON BUT I WILL TALK LOUD ENOUGH ANY WAY. WE HAVE A GREAT SHOW. YESTERDAY WAS AMAZING. THANK YOU ALL FOR SHOWING UP YESTERDAY AND BEING SUCH A GREAT AUDIENCE FOR OUR HOST OF SPEAKERS HERE AND ON THE EXTRA CRUNCH STAGE. BOTH STAGES WERE PACKED WHICH IS ALWAYS GREAT TO SEE. WE PUT A LOT OF HARD WORK INTO PROGRAMMING THESE SHOWS. IT’S REALLY GREAT WHEN YOU SHOW UP AND PARTICIPATE, DO QUESTION AND ANSWER ON THE QUESTION AND ANSWER STAGES, TALK AND LISTEN ON THE EXTRA CRUNCH STAGE. IT’S FANTASTIC. THANK YOU. TODAY WE HAVE A WONDERFUL SHOW AHEAD OF US. SAM AND GREG FROM OPEN AI WILL BE HERE TO TALK. THE ASSISTANT DIRECTOR OF CYBER SECURITY FOR DHS. YOU SHOULD BE THINKING ABOUT CYBER SECURITY AND SHE WILL HELP US TO THINK ABOUT THAT. THE CEO OF ZOLA WILL BE HERE WHICH WILL BE A FANTASTIC DISCUSSION. THE CEO OF ZUKE AND THE FORMER GOVERNOR OF MICHIGAN. WE WILL TALK ABOUT SELFDRIVING FUTURE OF THAT. THEN LATER I WILL TALK TO THE CEO OF SALES FORCE WHICH IS ALWAYS GOOD. MARK IS ALWAYS GREAT AND SHOULD BE FUN. THANK YOU VERY MUCH. WE WILL GET RIGHT INTO THE SHOW. HAVE A GOOD ONE. [APPLAUSE]. >> LADIES AND GENTLEMEN, PLEASE WELCOME, TECH CRUNCH MANAGING EDITOR AND DISRUPT MC JORDON CROOK. >> WHAT’S UP HOW WE DOING WILDLINGS, FROM GAME OF THRONES. YOU SEEN IT IN I CAN’T GET YOU EXCITED WITH GAME OF THRONES. >> BECAUSE OF THE FINALE. >> WE WILL TALK ABOUT THAT LATER. WE HAVE AN AMAZING DAY. A LOT TO SOAK UP TODAY. AS PER USUAL A COUPLE OF HOUSE KEEPING NOTES. WE ARE USING THE HASH TAG TC DISRUPT. NOTHING CHANGE FROM YESTERDAY. YOU CAN RELY ON THAT. WE WILL HAVE OTT R DOP AI SO IF YOU WANT TO SEE TRANSCRIPTS ANYTHING THAT HAPPENS ON THE MAIN STAGE CHECK THAT OUT. SHOULD BE SIMPLE TO NAVIGATE TO. I THINK WE SHOULD GET STARTED. OUR NEXT GUEST SOLD HIS COMPANY FOR THREE BILLION DOLLARS. WHO WANTS TO SELL A COMPANY FOR THREE BILLION DOLLARS. ME TOO. LET ME KNOW IF YOU HAVE ANY GOOD IDEAS. WE COULD PARTNER. WELCOME TO THE STAGE THE CHIEF DEVELOPMENT OFFICER OF JOHNSON AND JOHNSON AND THE FOUNDER AND MANAGING GENERAL PARTNER AT MITHRIL CAPITOL, AND YOUR MODERATOR. [APPLAUSE]. . >> YOU CAN GET A LITTLE MORE LIVELY THAN THAT. WE ARE TALKING ABOUT BILLION DOLLAR EXITS HERE. LET’S GIVE THEM A ROUND OF APPLAUSE. THAT’S A NICE HEFTY SUM. YEAH. WELL, IT’S GOOD STUFF. I REALLY AM EXCITED TO TALK BOTH ABOUT THE EXIT AND FRED, ABOUT YOUR NEW ROLE AT MITHRIL OR WHAT YOU ARE GOING TO BE DOING WITH THE FIRM. THERE WAS SOME BREAKING NEWS THAT HAPPENED LAST NIGHT THAT WE REPORTED AT TECH CRUNCH AROUND SOME ALLEGATIONS INVOLVING MITHRIL AND A FORMER EMPLOYEE AND I THINK WE NEED TO ADDRESS THESE BECAUSE THEY GET INTO — I THINK SOME FAIRLY SIGNIFICANT ISSUES AROUND CAPITOL MANAGEMENT, HOW MUCH FAITH YOU CAN HAVE IN EMPLOYEES, HOW YOU NEED TO VET THINGS APPROPRIATELY. SOME OF THE SIGNIFICANT ALLEGATIONS AROUND MITHRIL ITSELF. LAST MONTH IT WAS REPORTED THAT THE FBI WAS INVESTIGATING THE COMPANY AND TODAY WE REPORTED THAT YOU FILED AN INJUNCTION AGAINST A FORMER EMPLOYEE. WHAT IS GOING ON OVER THERE >> WELL IT’S AS MUCH OF ACE SURPRISE TO US AS ANYONE ELSE. WE WERE BLIND SIDED I WOULDN’T WISH IT ON ANYONE FRANKLY. THE SHORT VERSION IS THAT THERE HAVE BEEN A SERIES OF FALSE HOODS BOTH REPORTED ABOUT US IN A SET OF COMMUNICATIONS SENT TO VARIOUS PEOPLE WHO ARE BUSINESS PARTNERS AND OTHERS IN THE COMMUNITY. AT SOME POINT IT HAD TO STOP. WE TOOK THE TIME TO GATHER THE FACTS AND — THE SHORT IS WE HAVE STATED ALL OF THE FACTS WE HAVE GATHERED IN THE SUIT THAT WAS FILED YESTERDAY WHICH IS REALLY A COMPLAINT TO MAKE PUBLIC WHAT WE HAVE LEARNED AND TO STAND BY THOSE FACTS. WE HOPE THAT THIS WILL HELP PROTECT OUR COMMUNITY WHICH, AT THE END OF THE DAY, THAT FILING IS THE WORK OF SIX MONTHS OF PEOPLE IN THE COMMUNITY WHO ARE FOUNDERS, WHO ARE OUR LP’S, MEANING OUR INVESTORS, THE PEOPLE WHO PUT THEIR TRUST IN US. OUR EMPLOYEES WHO HAVE — AND FORMER EMPLOYEES WHO HAVE STEPPED UP AND HELPED US UNDERSTAND WHAT WAS HAPPENING AND SO THAT IS WHAT WE HAVE COLLECTED AND WE HOPE THAT IT’LL HELP SHED LIGHT ON THE SITUATION AND BRING A RESOLUTION TO THE SITUATION. >> AND THE ALLEGATIONS ARE THEMSELVES KIND OF THORNY. I THINK THAT ONE OF THE ISSUES IS THAT THERE ARE — THERE ARE SIGNIFICANT ISSUES THAT THESE THINGS CAN RAISE EVEN IF THEY AREN’T APPLYING TO YOU ALL. JUST THE FEW THINGS THAT — THAT PEOPLE SEEM TO BE TAKING ISSUE WITH IF ANYONE IS ACTUALLY TAKING ISSUE WITH THEM ARE THE FACT THAT THE FIRM RAISED $740 MILLION FOR ITS FUND. AS A SAN FRANCISCO BASED GROUP AND THEN RELOCATED TO AUSTIN. THAT — YOU HAVE ONLY DEPLOYED 90 MILLION OF THAT CAPITOL BY FEBRUARY THAT WAS THE REPORT, SINCE 2017 WHEN THE FUND CLOSED. THEN THAT YOU HAVE A FAMILY MEMBER WHO IS SERVING AS YOUR CHIEF FINANCIAL OFFICER AND THOSE THINGS SEEM TO BE WHAT MOST OF THE REPORTING HAS STUCK ON. ALONG WITH WEIRDLY THIS ALLEGATION THAT YOU SPEND TOO MUCH MONEY ON BOOKS WHICH SOUNDS SILLY. ISN’T IT TRUE THAT ONCE THE LP’S INVEST IN YOU AND YOU GET THAT MONEY YOU ARE THE GENERAL MANAGER OF THAT FUND >> THERE’S SEVERAL THINGS I COULD SAY ABOUT THIS. THE FIRST THING IS THERE HAVE BEEN ABSOLUTELY NO ALLEGATIONS FROM ANYONE THAT WE KNOW OF THAT HAVE BEEN SENT TO US. THAT IS THE FIRST THING I WANT TO SAY. THE SECOND THING IS THIS IS A BUSINESS OF TRUST AND IT’S A LONG TERM BUSINESS. WHEN YOU START A FUND IT IS NO DIFFERENT THAN DOING A START UP. YOU HAVE TO HAVE A FOUNDER MIND SET. IT’S NOT SOME — KIND OF THING WHERE THERE’S GOING TO BE 25 DIFFERENT IDEAS, YOU CAN BACK AND SEE WHAT HAPPENS. YOU HAVE TO HAVE A SUPER STRONG — LIKE A WORLD VIEW THAT GUIDES WHAT YOU ARE DOING. IT HAS TO BE DETERMINED. IT CAN’T BE THE SUM OF OUTCOMES. IT’S LIKE THAT DOESN’T WORK AS AN IDEA FOR ME. YOU HAVE TO HAVE A STRONG WORLD VIEW. WE WERE STARTED WITH A SUPER STRONG WORLD VIEW WHICH IS, YOU KNOW — AND MY BUSINESS PARTNERS SAY THIS BETTER THAN I HAVE WHICH IS A COMPANY IS SUCCESSFUL TO THE EXTENT THAT IT’S DIFFERENT IN VALUABLE WAYS FROM OTHER COMPANIES IN THE WORLD. IN THE SAME WAY A FUND — INVESTMENT FUND IS SUCCESSFUL TO THE EXTENT THAT IT’S DIFFERENT FROM EVERY OTHER FUND IN THE WORLD IN UNIQUE AND IMPORTANT WAYS. SO YOU HAVE TO HAVE THAT STRONG WORLD VIEW. THAT IS WHAT, YOU KNOW IN THE SAME WAY THAT WHEN WE INVESTED IN ORIS, WE WERE IN THE INVESTING TO SECOND GUESS FRED AND WE KNEW THAT. WE KNEW THAT WE HAD TO BE PARTNERS FOR THE LONG RUN WITH FRED. FRED WOULD MAKE A LOT OF CHOICES ALONG THE WAY. SOME WE LIKED, SOME WE DIDN’T LIKE AND THAT’S FINE. WE HAD THE FIND OF RELATIONSHIP WHERE WE COULD HAVE THAT CONVERSATION. IT’S EXACTLY THE SAME THING WHEN IT COMES TO FUNDS AND THEIR LP’S. THEIR MECHANISMS BY WHICH THE DECISIONS CAN WE MADE AND FRED AND THE INVESTMENT OF LP’S AND EVERY OTHER FUND IN SILICON VALLEY AND THAT’S THE WAY IT SHOULD BE. AT THE END OF THE DAY WHAT PEOPLE ARE SAYING IS — LET OF LET’S UNDER WRITE, RIGHT UP FRONT HOW YOU THINK ABOUT THINGS AND HOW, YOU KNOW, WHAT GUIDES, WHAT VALUES AND WORLD VIEW GUIDES THE CHOICES THAT YOU WILL MAKE. THEN LEAVE THOSE SPECIFIC CHOICES IN THE HANDS OF THE FOUNDER IN THE SAME WAY THAT THEY DO WITH OUR COMPANIES. YOU CAN TALK TO THAT. >> I THINK WHAT’S SO INTERESTING ABOUT THIS DEBATE IS, YOU KNOW, IN MY MIND. IT’S HARD TO UNDERSTAND THE STORY THAT YOU ARE REPORTING ON OTHER THAN YEAH IS BEING CRITICIZED FOR BEING SMART AND CAREFUL WHICH IS AN INTERESTING ALLEGATION. YOU KNOW, I DO THINK THAT, UM, IN MY MIND I HAVE WORKED A LOT OF VENTURE CAPITALISTS. THERE’S A LOT OF DIFFERENT WAYS TOINVEST OR OUTSIDE — YOU KNOW IN TECH ITSELF. ONE IS, TO, YOU KNOW, INVEST IN TEN THINGS AND HOPE ONE WORKS OUT. THE OTHER ONE IS TO BE CAREFUL. LOOK FOR DISRUPTIVE TECHNOLOGIES THAT TRULY CAN CREATE MARKETS THAT ARE — THAT ARE EXCITING, EXTRAORDINARY AND FAST GROWING. YOU KNOW, I WASN’T WITH JAY VERY LONG UNTIL WE WENT TO THE FIRST — I WAS INVITED TO THE FIRST LIMITED PARTNERS MEETING AND WHAT I SAW WAS THE BEST SMALL BUT MOST IMPRESSIVE PORTFOLIO OF INVESTMENTS I HAD SEEN WITH ANYONE AND I HAVE BEEN AROUND A WHILE. I THINK THAT IS THE STORY THAT THESE ARE SMART, THEY ARE CAREFUL. THEY TAKE TIME. AND — THEY HAVE THE OPPORTUNITY TO BE VERY BIG STORIES. >> FRED, NOW THAT YOU ARE WORKING WITH JAY, AREN’T YOU KIND OF PAID TO SAY THAT I’M KIDDING. I’M KIDDING. I THINK THAT — THE — THE DECISION WITH — THE DECISION TO SELL TO JAY AND JAY RATHER THAN TAKE THAT COMPANY PUBLIC SPEAKS TO I THINK THE WAYS IN WHICH YOU ARE MAKING THOSE KIND OF THINGS — ON WHAT IS BEST FOR ORIS AS A AND AND WHAT’S BEST FOR YOU AS AN INVESTOR. IT’S A SUCCESS. YOU WILL MAKE 740 MILLION WITH EARN OUTS OR THE FIRST FUND WILL DO THAT >> ITS GOING TO DO WELL. >> THERE IS A NUMBER BUT I DON’T REMEMBER IT RIGHT NOW. I THINK CONNIE REPORTED IT TODAY. WHY DID YOU MAKE THE DECISION TO SELL WHEN YOU COULD HAVE GONE PUBLIC YOU TOOK — YOU WERE WITH THE MOST SUCCESSFUL SORT OF MEDICAL DEVICE COMPANY OF ALL TIME. I THINK IT TRADES 8000% FROM ITS INITIAL PUBLIC OFFERING PRICE ALONG TIME AGO. IT’S A WILDLY SUCCESSFUL COMPANY. THE APPLE OF MED TECH. WHY NOT TRY TO MAKE LIGHTNING STRIKE TWICE WITH ORIS >> IT’S A GREAT QUESTION. ONE THAT — I THINK ALL OF US, YOU KNOW, MANAGEMENT AND THE BOARD STRUGGLE WITH IN THE TIME PERIOD WHERE WE MADE THAT DECISION. ONE THING I HAVE LEARNED IN MY CAREER THAT IS SUCH A DOMINANT FACTOR IN WHETHER YOU OBTAIN MODERATE SUCCESS OR GREAT SUCCESS IS QUITE FRANKLY TIMING. THE TIMING OF INTUITIVE WAS FANTASTIC IN THAT WHEN I STARTED IT — EVERYBODY THOUGHT IT WAS THE CRAZE YESEST THING THEY HAD EVER HEARD OF. A ROBOT OPERATING ON HUMANS, WHY WOULD YOU DO THAT WHICH GAVE US A LOT OF TIME TO UNDERSTAND HOW TO DO IT, AND HOW TO GAIN ACCEPTANCE FOR IT. IT WAS PAINFUL. EVERYBODY — YOU KNOW A LOT OF CRITICISM THAT — THEN TURNS INTO WHAT I CALL BE GRUDGING ACCEPTANCE THAT TURNS INTO A SLIDE — A SLIDE THAT DESCRIBES IT AS RINGING ENDORSEMENT WITH A LOT OF PEOPLE SAYING IT WAS OBVIOUS TEN YEARS AGO THIS WAS THE WAY THAT SURGERY SHOULD — SHOULD DEVELOP. THE KEY LEARNING THERE WAS WE HAVE TIME TO FIGURE IT OUT. >> YEAH. >> I CREATED — A MONOPOLY THAT HAS HUGE ADVANTAGE FROM THE STANDPOINT OF PRESENCE IN THE MARKET WITH — MARKET SHARE, A DEVELOPMENT OF THE TECHNOLOGY, DEVELOPMENT OF THE PROPERTY, THEY ARE POSITIONED TO MAKE IT VERY DIFFICULT TO HAVE ANYONE ENTER THE SPACE AND NOT STRUGGLE. YOU KNOW THERE’S — THERE’S ONE THING TO BUILD SOMETHING. THERE’S ANOTHER THING TO SELL SOMETHING AND MAKE A PROFIT. IN THE MEDICAL DEVICE BUSINESS, IT’S USUALLY THE LATTER THAT’S PRETTY HARD. HARDER THAN YOU CAN USUALLY — IF YOU GET THE SMART GUISE, SMART ENOUGH GUYS AND ENOUGH OF THEM IN A ROOM YOU CAN FIGURE OUT WHAT YOU WANT TO BUILD. TO CREATE A BUSINESS HAS A LOT TO DO WITH MARKET FORCES AND TIMING. ALTHOUGH WE ARE — WERE AND — CONTINUE TO BE HUGELY EXCITED ABOUT THE FUTURE, THE NEXT STEP IN ROBOTICS AND HEALTH CARE. AT THE END OF THE DAY WE DECIDED, J AND J IS THE PERFECT PARTNER TO LEAPFROG WHAT’S BEING DONE TODAY AND BRING IN A NEW ERA OF WHERE ROBOTICS IS USED IN HEALTH CARE AND I DON’T MEAN JUST SURGERY. I MEAN THROUGHOUT THE MEDICAL SPECIALITIES. IN DIAGNOSIS AND THERAPY. >> AND — HOW DOES WHAT YOU ARE DOING WITH J AND J INFORM THE WORK YOU WILL BE DOING WITH J AT — AT MITHRIL >> YOU KNOW — THEY ARE QUITE SEPARATE. IN A ROLE OF CHIEF DEVELOPMENT OFFICER I HAVE THE LUXURY OF — OF SEEING AND UNDERSTANDING PARTS OF HEALTH CARE AND TECHNOLOGY AND HEALTH CARE THAT IS NEXT GENERATION STUFF. SOME OF WHICH, YOU KNOW, MAY FIT. A LOT OF WHICH IS GOING TO NEED — TO GET FROM AN IDEA TO USEFUL. >> WHAT IS FRED’S ROLE >> WE HAVE BEEN PARTNERS FOR ALMOST MORE THAN FIVE YEARS, ALMOST SIX YEARS AT THIS POINT. WE STARTED HAVING CONVERSATIONS ABOUT THE FACT THAT THERE ARE TIMES LATE AT NIGHT WHEN YOU START THINKING ABOUT CRAZY IDEAS AND THERE’S A FEW PEOPLE THAT YOU CALL TO SAY WHAT DO YOU THINK OF THIS THOSE ARE THE BEST CONVERSATIONS. YOU USUALLY HAVE THOSE CALLS WITH YOUR CO FOUNDERS IF YOU ARE A START UP FOUNDER YOU HAVE IT WITH MUSES AND PEERS. FRED IS ONE OF THOSE PEOPLE. WE END UP HAVING THOSE CONVERSATIONS AND THEY ARE NEVER, YOU KNOW, WHEN HE WITH WERE INVESTED IN ORIS SOME OF THOSE CONVERSATIONS MAYBE 20, 30% WERE DIRECTLY RELEVANT TO THE COMPANY AND THEY WERE IMPORTANT, TIME SENSITIVE CONVERSATIONS. A LOT OF THOSE WERE — THAT’S WHEN YOU REALIZE THAT THERE ARE PEOPLE THAT YOU WANT TO SPEND MORE TIME WITH AND WORK WITH WHOSE JUDGMENT YOU RESPECT AND FRED HAS A VERY IMPORTANT DAY JOB. THE QUESTION WAS DO WE WANT TO SET UP SOMETHING THAT LOOKS LIKE A VENTURE TYPE ROLE. WE HAVEN’T DONE THAT AND WE HATE THIS IDEA OF FREE OPTION OR LOW COST OPTION WHEN YOU HAVE A LOW COST OPTION WITH A HIGH PAYOFF BY DEFINITION THAT’S A LOTTERY TICKET. YOU SHOULD NOT BE IN THE BUSINESS OF BUYING LOTTERY TICKETS. THE DISCUSSION WE HAD WAS WHAT ARE THE THINGS AROUND WHICH WE CAN DEVELOP SUPER HIGH CONVICTION. WE SEE A LOT — AND FRED SEES A LOT. THE QUESTION WE HAVE IS WHAT’S THE ONE THING THAT WE WOULD BOTH BE SUPER EXCITED TO WORK ON TOGETHER AND CONCENTRATE TIME AND MONEY INTO TOGETHER AS INVESTORS AND THAT IS THE ROLE. WE ARE CALLING A GROWTH PARTNER. IS HE — OBVIOUSLY NOT A FULL TIME MEMBER OF THE TEAM. THAT’S NOT THE INTENT. IT’S TO HAVE A PARTNER THAT CAN WORK WITH US. IT’S THE OPPOSITE. EXPRESSED IN — IN A FORMAL WAY WE CAN WORK TOGETHER. >> AND YOU ARE MAKING SEED INVESTMENTS AS WELL. YOU HAVE DONE A FEW DEALS. >> I HAVE BEEN DOING THAT FOR YEARS. >>AND YOU INVEST IN A COMPANY TOGETHER. A ROBOTIC DENTIST COMPANY OUT OF MIAMI >> YES. ACTUALLY — I’M PROUD TO SAY THAT FRED WAS AN INVESTOR BEFORE I WAS. MAYBE YOU CAN TALK ABOUT YOUR — WHY YOU FOUND — I CAN TALK ABOUT WHY I INVESTED. >> IT GETS TO — WHERE IS ROBOTICS TODAY AND WHERE SHOULD IT GO I HAVE HAD SOME VERY DIFFERENT EARLY EXPERIENCES, TWO DIFFERENT COMPANIES. ONE — WE TALKED ABOUT INTUITIVE. THE OTHER WAS MACO SURGICAL AND LESS WELL KNOWN. IT’S REALLY THE FIRST ROBOT THAT ENTERED ORTHOPEDICS IN A SUCCESSFUL WAY. VERY DIFFERENT KIND OF ROBOT. IT’S — IT’S ESSENTIALLY A SMART DRILL. IT KNOWS WHERE IT IS IN 3D SPACE. IT CAN DRILL BETTER THAN A SUR GEON CAN BY HOLDING A HANDHELD TOOL AND DRILLING OUT A PART OF THE BONE. SO THAT HAS BEEN VERY SUCCESSFUL. SOLD TO STRIKER AND — THEY ARE — THEY ARE SELLING LOTS AND LOTS OF ROBOTS TO DO A BETTER JOB OF DRILLING BONE. WHERE ELSE MAY THAT BE USEFUL AND — THE WHOLE IDEA OF DENTISTS AND IMPLANTS HASN’T BEEN A PARTICULARLY SUCCESSFUL BUSINESS IN THIS COUNTRY RELATIVE TO EUROPE. THEY DO A LOT MORE DENTAL IMPLANTS THAN THE UNITED STATES AND THE QUESTION IS WHY ONE OF THE ANSWERS IS THAT, YOU KNOW, YOU KIND OF HAVE TO BE AN ORA L SURGEON AND BE WILLING TO — TAKE THE TIME TO TRAIN AND UNDERSTAND HOW TO DRILL A HOLE IN THE BONE IN ORDER TO PUT IN A IMPLANT AND WHERE HAVE I SEEN THIS MOVIE BEFORE IT’S THE SAME THING. YOU GET — YOU KNOW YOU DRILL — YOU KNOW AT THE WRONG ANGLE, YOU DRILL TOO DEEP, YOU KNOW — YOU GET A BAD RESULT. IT CAN LEAD TO A LOT OF BAD THINGS DOWN THE ROAD. SO, WHETHER IT’S TAKING OUT A PROSTATE, DRILLING A HOLE IN A BONE, OR DOING SOMETHING ELSE WITH A ROBOT THERE ARE PLACES WHERE THE ROBOT IS JUST GOING TO DO A BETTER JOB THAN A HUMAN. THAT’S A GREAT PLACE TO DIG IN WITH ROBOTIC TECHNOLOGY.. >> WE HAVE MAYBE — I THINK AT THIS POINT THREE ROBOTICS COMPANIES IN THE POR TFOLIO, ONE HAS EXITED. GRAY ORANGE STARTED IN INDIA AND IT’S NOW HEADQUARTERED IN ATLANTA. SO, THE THESIS HAS TO DO WITH HUMAN MACHINES TO GET MORE EFFICIENT AND MORE UNIFORM IN OUTCOME. IF YOU HAVE THESE NORMAL OUTCOMES HOW DO YOU SHIFT IT AS FAR AS POSSIBLE TO THE RIGHT IS KIND OF AN INTERESTING QUESTION. AND THE MARKETS IN WHICH YOU CAN DO THAT TEND TO BE — LIKE VARIED. IT’S — IT’S — YOU CAN — POSITIONING AN IMPLANT FOR THE KNEE TO DOING LUNG SURGERY TO POSITIONING AN IMPLANT IN THE ORAL CAVITY OR HAVING A LIQUID KIND OF ROBOTIC MARKET PLACE AS — FOR WAREHOUSE ROBOTICS WHICH IS WHAT GRAY ORGANIZE DOES. BUILT IN AN AGENT BASED SYSTEM. SO, THIS TYPE OF THING — IT’S — WHEN PEOPLE THINK ABOUT ROBOTS THEY THINK OF MEGATRON AND THE TRANSFORMERS AND IRON MAN SUITS BUT THEY SHOW UP IN ALL OF THESE PLACE THAT ARE EVERY DAY. THAT MAKES FOR REALLY BIG ADDRESSABLE MARKETS THAT ARE — SUFFICIENTLY NARROW IN TERMS OF THE PARAMETERS THAT IT’S DOABLE FOR A START UP. IF THEY PUT THEIR MIND TO IT. IF THEY ARE COMFORTABLE WITH — ANA DISSAL LAYER OF TECHNICAL COMPLEXITY. THE PEOPLE WHO GET OBSESSED ARE NOT ALWAYS HERE. MAYBE HALF ARE FROM — IF YOU LOOK AT OUR DEAL FLOW. THE OTHER HALF ARE EVERYWHERE ELSE. THAT’S WHAT IS INTERESTING. EVEN IF THEY ARE HERE THEY ARE ON THE WRONG SIDE OF 101. >> DOES THE DEAL INDICATE HOW YOU WOULD WORK WITH MITHRIL GOING FORWARD YOU SEE THESE DEALS AND YOU WILL BE ABLE TO BRING THEM TO THE FIRM AND — ARE YOU GOING TO BE LOOKING AT ROBOTICS BROADLY OR SPECIFICALLY IN THE HEALTH CARE SPACE >> YOU KNOW — I THINK — I HAVE DONE A LOT OF INVESTING IN THINGS THAT HAVE NOTHING TO DO WITH ROBOTICS. THIS IS — MY OBJECTIVE WOULD BE — TO LOOK MORE BROADLY IN HEALTH CARE. >> BUT HEALTH CARE IS THE MANDATE. >> EVERY FOUNDER I HAVE TALKED TO, THEY WANT TO TALK TO FRED. >> WHEN YOU FIRST HAD THOSE DISCUSSIONS WERE YOU CONCERNED ABOUT THE ALLEGATIONS THAT WERE STARTING TO ARISE >> NO. >> HAVE YOU BEEN HAVING THESE CONVERSATIONS FOR A WHILE. >> I SPENT FIVE YEARS WORKING CLOSELY WITH THE J AND — HIS TEAM. I MUST TELL YOU THAT — YOU KNOW — THE REASON WHY — ONE OF THE REASONS WHY WE ARE SO SUCCESSFUL IS THAT JAY WAS ABLE TO LOOK AT THE COMPANY AND SAY, YOU KNOW, WHAT IS GOING — WHY IS IT THAT — THIS COMPANY ISN’T BEING FLOODED BY VENTURE CAPITAL AND WE WERE — I WAS ALWAYS — BEEN — ALWAYS GOOD ABOUT RAISING MONEY BUT HAVE — LIVED THROUGH THE — THE EBBS AND FLOWS OF VENTURE CAPITOL AND THEIR BELIEF OF WHAT’S HOT AND WHAT’S NOT IN HEALTH CARE, IT GOES IN AND OUT OF FAVOR IN A PRETTY PREDICTABLE FASHION. JAY WAS SMART ENOUGH TO UNDERSTAND WHERE WE WERE AT THE POINT IN TIME WHERE A LOT OF INVESTORS WERE FLEEING HEALTH CARE AND CERTAINLY MEDICAL DEVICES. THEY WERE LOOKING AT SNAP CHAT AND SAYING I CAN PUT — LESS MONEY AND MAKE — MULTIPLES OF THE RETURN I COULD MAKE IN A MEDICAL DEVICE. WHY WOULD I DO THAT IF YOU LOOK IN THE LAST 20 YEARS — I DON’T KNOW IF THEIR A FACT. I SUSPECT THERE ARE SIGNIFICANTLY LESS VENTURE FIRMS THAT ARE OF ANY SIGNIFICANCE THAT WILL STATE THAT MED TECH WAS — A SIGNIFICANT FOCUS OF THEIRS. OTHER WORDS A LOT OF THESE VENTURE FIRMS THAT — THOUGHT THEY WERE GOOD AT MEDICAL DEVICES HAVEN’T DONE WELL ENOUGH TO SURVIVE AND A LOT OF THEM ARE GONE. >> WHEN YOU — INVEST, THE RECENT INVESTMENTS YOU HAVE MADE HAVE BEEN IN SINGAPORE AND MIAMI AND NEW HAMPSHIRE, NORMALLY THERE ARE IS A MORE FOCUSED APPROACH TO WHERE THEY INVEST. IS THE FUTURE A MOREDISTR IB SPREAD OUT MODEL OR IS THAT JUST YOUR FIRM >> I THINK IT’S A MORE DISTR IB UTED MODEL. WE HAVE A CRITICAL MASS OF TALENT. IT’S HOLLYWOOD FOR SMART PEOPLE. THE TECHNOLOGIES OF SCALE. THE TECHNOLOGIES OF STARTING SUCCESSFUL START UPS THAT SUPPORT SUCCESSFUL START UPS HAVE IN A WAY COME OUT OF SILICON VALLEY — SILICON VALLEY IS A STATE OF MIND AND A CULTURE AND A WAY OF THINKING ABOUT THE FUTURE. WHY DOES IT HAVE TO BE MARRIED TO A PHYSICAL REALITY OF BEING 100-MILES WHERE WE ARE RIGHT NOW WHICH IS THE TRADITIONAL WAY TO THINK ABOUT THIS. THAT WAS THE SAME IN BOSTON WHEN ROUTE 128 WAS SUPPOSED TO BE THE PLACE WHERE THINGS HAPPEN. IF YOU THINK ABOUT HOW NETWORKS WORK THE UNDERLYING THESIS BEHIND THE 100-MILE RULE IS THAT NETWORKS ARE SPATIALLY DRIVEN. IF YOU THINK ABOUT NETWORKS. THE NETWORKS IS DECOUPLED FROM SPATIAL REALITIES. I WILL JUST MAKE SOMETHING UP. PEOPLE WHO ARE OBSESSED R OBOTIC INSECTS. ARE YOU PROBABLY MORE LIKELY TO FIND THEM ON A SUBREDITIT. SOME OF THOSE PEOPLE ARE PROBABLY HERE IN CALIFORNIA AND SOME IN AUSTRALIA. THAT’S FINE. WE — YOU DON’T KNOW WHICH ONE OF THOSE FOLK IS GOING TO HAVE THE GAME CHANGING IDEA AND SO, MY VIEW IS — YOU HAVE TO KEEP AN EVEN MIND. WHY — WHY — YOU KNOW — THERE’S — THERE’S WAYS IN WHICH YOU HAVE TO EXPLAIN TO INVESTORS WHAT YOU DO. ONE OF THE HANDICAPS IN MY INDUSTRY, WHICH IS VENTURE, IS TRYING TO EXPLAIN YOUR VIEW OF SOMETHING FOR WHICH THERE IS NO MODEL WHICH IS THE NEXT MOST INTERESTING COMPANY IN THE WORLD. ARE YOU LIKE I HAVE TO EXPLAIN TO ALL THESE PEOPLE WHAT THE FUTURE LOOKS LIKE WITHOUT SOUNDING LIKE SOME CRAZY PERSON. YOU CAN’T. >> SOUND LIKE SOME CRAZY NOSTRADAMUS PERSON. HAVE TO BE RATIONALLY CRAZY. OTHERWISE YOU HAVE THIS EFFECT OF THIS OPTIMISM AND CY — YOU HAVE THE VALUE OF DESPAIR. ARE YOU LIKE I HATE THE WORLD, EVERYBODY HATE ME, TECHNOLOGY DIE. THEN YOU STEP BACK AND SAY, OKAY, CALM DOWN. LIKE STOP TWEETING. LET’S JUST FIGURE THIS OUT. >> STOP TWEETING IS A UNIVERSAL PIECE OF ADVICE THAT EVERYBODY SHOULD TAKE. >> FIRST PRINCIPLES INVESTING HAVE YOU TO JUST SAY WHATEVER COMES AT YOU, YOU JUST TAKE AS DEFACTO POTENTIALLY VALID AND THEN YOU VALIDATE IT. IF YOU CAN’T VALIDATE IT YOU DON’T DO IT BUT THEN THAT’S WHAT YOU ARE LOOKING FOR. SO. >> FRED, IF YOU PUT ON YOUR NOSTRADAMUS HAT AND TALKED AS A CRAZIY INVESTOR PERSON, WHAT IS — THE — WHAT ARE THE MOST INTERESTING NEXT COMPANIES THAT ARE GOING TO BE BUILT IN MEDICINE >> WELL, THAT’S — A GREAT QUESTION. I WILL — I WILL — LET ME STICK TO WHAT I KNOW. I DON’T KNOW A LOT. >> IT WOULD BE THE FIRST VC TO DO BUT GO HEAD. >> YOU KNOW IF YOU JUST LOOK — I MEAN ROBOTICS. IF YOU TAKE IT — TO THE EXTREME IT’S A VERY BIG CATEGORY, DEPENDS ON WHAT YOU DEFINE AS A ROBOT. WHAT IS INTERESTING TO ME — AND JAY ALLUDED TO IT. EVERYBODY FOCUSES ON THE MECHANICAL OR — THE PART OF ROBOTICS. WHAT WILL CHANGE THE WORLD OBVIOUSLY IS THE SOFTWARE THAT DRIVES AN ELECTRIC MECHANICAL DEVICE. YOU JUST — YOU KNOW SOMETIMES WHEN I TALK ABOUT ROBOTICS I USE THE — HOW — HOW ROBOTICS CERTAINLY IN HEALTH CARE KIND OF — FROM THE STANDPOINT OF WHERE WE ARE TODAY, THEY ARE REALLY DUMB. THEY DON’T — YOU KNOW — THE DIVINCI SURGICAL SYSTEM THAT EVERYBODY THINK IS TO HIGH TECH IS A DUMB MACHINE. YOU MOVE AND IT MIMICS YOUR MOVEMENT. THAT’S REALLY ALL YOU GET. SO, THE INTELLIGENCE OF ROBOTICS, YOU KNOW, IS — GOING TO BE OBVIOUSLY WHAT CHANGES THE WORLD AND SOMETIMES I TALK ABOUT IT AND >>>SO IF YOU THINK ABOUT THAT, WHERE ARE WE GOING AND WHAT’S A GOOD MODEL FOR WHERE WE COULD GO? AND I USE THE CAR INDUSTRY BECAUSE THE AUTONOMOUS VEHICLES ARE SENSOR DRIVEN ROBOTS. RIGHT? THEY’RE PRETTY SMART. THEY CAN SEE IN DIFFERENT WAYS THAN WE DO AND MAKE DECISIONS SO THAT’S A GREAT EXAMPLE OF A ROBOT THAT’S NOW HAS HUNDREDS OF MILLIONS OF LINES OF CODE. THAT’S WHERE ROBOTICS AND HEALTHCARE IS GOING AND THAT’S REALLY EXCITING.>>THAT’S AMAZING. WE ONLY HAVE A COUPLE OF MINUTES LEFT OR A MINUTE LEFT. SO I WANT TO PUT A FINAL PIN IN THE DISCUSSION AROUND THE FIRM STUFF. DID MYTHERAL DO ANYTHING ILLEGAL?>>NO.>>WAS IT A MISTAKE — IS IT WRONG TO DEMOY CAPITAL OBSORB PLAYS, GETTING MILLIONS OF DOLLARS IN MANAGEMENT FEES WITHOUT DEPLOYING CAPITAL WHICH IS ESSENTIALLY YOUR JOB?>>ABSOLUTELY NOT. THE SHORT SANSER IS IT TAKES YEARS AND YEARS OF FIGURING OUT WHAT YOU SHOULD DO AND YEARS TO FIGURE OUT WHAT NOT TO DO SO YOU ARE BUILDING A FIRM TO MAKE GOOD CHOICES OVER TIME. EVERY INVESTMENT BE HAVE MADE OVER THE PAST YEARS WERE YEARS OF WORK. THE MOST RECENT INVESTMENT IS AN INVESTMENT THAT STARTED IN 2014. IS THAT A FUND ONE OR FUND TWO RELATIONSHIP? BOTTOM LINE IT IS YEARS OF YES AND NO AND FIGURING AND TALKING. IF YOU ARE PLAYING THE LONG GAME, YOU HAVE TO FOCUS ON THE CORE MISSION, THE VALUES THAT DRIVE THE MISSION AND EVERYTHING ELSE IS NOISE. JUST DO THAT AND IT WILL GO WELL. IT APPLIES TO FOUNDERS, START UPS, AND VENTURE CAPITAL FUNDS.>>WITH THAT SIR, I THINK WE ARE OUT OF TIME. THANK YOU SO MUCH.>>THANK YOU.>>THANK YOU. CONGRATULATIONS ON ALL OF YOU FOR MAKING IT THROUGH SECURITY. I HEAR IT IS A GAUNTLET OUT THERE. SO WE STILL HAVE PEOPLE TRICKLING IN BUT YOU ARE STILL HERE. ON THE EXTRA CRUNCH STAGE COMING UP, WE HAVE HOW TO RAISE MY FIRST DOLLARS ARE RUSS HEDDLE STN, THE COFOUNDER OF DOXEN, CHARLES HUDSON AND ANNIE CADAVY AT RED POINT VENTURES . I CAN’T IMAGINE IF THERE ARE ANY FOUNDERS WHO DOESN’T WANT TO KNOW ABOUT HOW TO RAISE YOUR FIRST DOLLARS. SO DEFINITELY CHECK THAT OUT. IN THE MEANTIME, WE HAVE GV’S MANAGING PARTNER AND CEO DAVID CRANE JOINING US ON THE STAGE AND OUR MODERATOR CONNIE LOSOEZ.>>SO DAVID, I HAVE BEEN WANTING TO INTERVIEW YOU FOR THREE YEARS SINCE YOU BECAME THE CEO OF GV. SO THANK YOU FOR DOING THIS TODAY. SO DAVID SPENT — YOU HAVE BEEN AT GOOGLE FOR 20 SOME YEARS.>>20.>>OKAY. YOU WORKED FOR A LARGE CHUNK OF THAT TIME AS THE GLOBAL HEAD OF PR. YOU KNOW EVERY REPORTER IN SILICON VALLEY. WHY DID IT TAKE YOU SO LONG TO COME OUT OF HIDING?>>I HAVEN’T BEEN IN HIDING BUT WE HAVE BEEN REALLY BUSY. WHEN YOU HAVE A SECOND ACT TO GOOGLE WHICH IS DIFFERENT FROM YOUR FIRST ACT, YOU HAVE TO STAY FOCUS. WE ARE BUILDING A LARGE SCALE VENTURE FUND WHICH THIS YEAR IS CELEBRATING THE 10th BIRTHDAY.>>INCREDIBLE. IT GOES FAST. THERE IS A LOT TO TALK ABOUT. BUT WHAT I WOULD LOVE TO DIVE INTO, ONE OF YOUR HIGH PROFILE DEALS, INVESTING IN UBER. I HEARD THAT YOU WERE THE ONE THAT WAS AGITATING TO LEAVE THIS $250 MILLION CC RUN WHICH AT THE TIME WAS A BIG DEAL. SO I WANT TO KNOW FRANKLY, AND IN HIND SIGHT THAT WAS A BRILLIANT INVESTMENT. DO YOU THINK THAT MAKES SENSE NOW FOR PUBLIC SHARE HOLDERS?>>OKAY. SO THIS IS A SPECIAL COMPANY. THIS COMPANY HAS AN UNMISTAKABLE BRAND, OPERATES IN HUNDREDS OF CITIES AROUND THE WORLD. IT HAS SCALE AND MOTOR AROUND IT THAT IS TOUCHED IN ALMOST NON IN THE CATEGORY. LONGTERM, WE ARE BULLISH AND I THINK IT IS AN INTERESTING OPPORTUNITY AND IT HAPPENS TO BE ON SALE TODAY.>>DO YOU THINK THIS COMPANY WILL BECOME PROFITABLE IN A REASONABLE TIME?>>THERE IS A TENSION OF INVESTING, BUILD DEEPER OR FOCUS ON BUSINESS FUNDAMENTALS? SUPER ATTRACTIVE BUSINESSES IN SOME CITIES OFFSET IN BUILDING MORE SECURITY, MORE INDEPENDENCE, MORE OF A MOTE INTO THE FUTURE. SO LONG VIEW, I THINK IT IS QUITE ATTRACTIVE.>>AND IT IS GETTING INTO NEW BUSINESS LINES IS INTERESTING. YOU TOLD ME THAT GV SOLD PART TO SOFT BANK LAST YEAR. THEY WANTED TO BUY A SUBSTANTIAL PART OF THE COMPANY. CAN YOU SAY HOW MUCH OF YOUR STAKE YOU SOLD?>>PROBABLY BEST NOT TO. BUT IT WAS A GREAT TRANSACTION. WORKING WITH SOFT BANK WAS QUITE PLEASANT AND I THINK THERE WERE A NUMBER OF SHARE HOLDERS THAT DID WELL.>>UBER’S LOCK HOLDER IS COMING UP QUICKLY. WILL YOU SELL THE REST OF YOUR STAKE?>>I THINK IT IS NOT CLEAR. THINGS ARE A LITTLE UNSTABLE. ABOUT IN A MONTH WE WILL HAVE A BIG DECISION TO MAKE.>>SO WHEN YOU INVESTED IN UBER IN 2013, YOU WERE INVESTING IN A DIFFERENT FOUNDER, TRAVIS CALNIC WHO OBVIOUSLY WAS PRESSURED TO RESIGN IN 2017. THIS IS A LITTLE REMINISCENT OF WHAT HAPPENED WITH ADAM NEWMAN OF WE WORK. HE HAD GROWN THE COMPANY OVER THE LAST NINE YEARS, AND PRESSURED TO RESIGN. I’M SORT OF WONDERING, WHERE WE AN AGREEMENT THAT MAYBE THE INVESTORS COULD HAVE DONE SOMETHING SOONER? THESE ARE TWO FOUNDERS WHOSE MANAGEMENT STYLES AND THE WAY THEY OPERATED THEIR COMPANIES WERE VERY WELL KNOWN. IT WASN’T A SURPRISE. WHY SUDDENLY WAS IT PROBLEMATIC AND WHY DIDN’T SOMEONE DO SOMETHING SOONER?>>WELL, PROBABLY THE BEST ADVICE, IT WOULD HAVE BEEN PRUDENT TO CURB SOME OF ADAM’S CREATIVITY SOONER. FEATURE IS A FOCUS AND IN THAT BUSINESS, I DON’T THINK THEY DISCIPLINED. BUT I WILL SAY THERE IS LITTLE SIMILAR TO BETWEEN TRAVIS AND ADAM. TRAVIS WAS INCREDIBLY INVIABLE WITH UBER AND SOMEONE WE CHASED AGGRESSIVELY TO BE INVOLVED WITH.>>SO TALK ABOUT GB UNDER DAVID CRANE. SO ONE THING THAT I NOTICED IN THE FIRM’S EARLY’S DAY, IT WOULD TALK ABOUT THE DISCRETE POOLS OF CAPITAL. ONE YEAR, WE RAISED $300 MILLION. ANOTHER YEAR WE WERE ALLOCATED $500 MILLION. IS THAT STILL THE CASE YOU ARE GIVING YEARLY ALLOCATIONS AND IF SO, WHAT ARE YOU INVESTING NOW?>>WHEN WE STARTED GB, WE HAD SEVERAL DECADES OF CAPITAL EXPERIENCE AND PICK THE GREATEST ATTRIBUTES AND DO OUR BEST TO STAY AWAY WHAT WAS NOT OPTIMIZED. YES, EACH YEAR, WE WOULD ENGAGE WITH OUR SINGLE LP ALPHABET AND FIND OUT A REASONABLE POOL OF CAPITAL TO DEPLOY EACH YEAR. SO WE STARTED WITH A $50 MILLION FUND. NOW 10 YEARS LATER, WE ARE INVESTING HUNDREDS OF MILLIONS PER YEAR.>>SO HOW MUCH HAVE YOU ALLOCATED ALTOGETHER AT THIS POINT?>>TOTAL NEARLY $5 BILLION.>>WOW. THAT’S ASTONNISHING. IT IS NOT LIKE ALPHABET NEEDS THE MONEY BUT YOU DID INVEST IN UBER, GOOD FOR YOU. YOU INVESTED IN NEST LABS WHICH GOOGLE BOUGHT FOR $3.2 BILLION SEVERAL YEARS AGO. CAN YOU TALK ABOUT YOUR RETURNS? HAVE YOU RETURNED — WHAT PERCENTAGE OF THAT MONEY HAS COME BACK TO GOOGLE?>>THIS IS A BUSINESS THAT IS MEASURED IN DECAEDZ. WE ARE TEN YEARS OLD AND WE ARE HAPPY WITH THE PERFORMANCE OF THE FUND. I WILL SAY WE ARE BACKED BY AN INVESTOR THAT HAS BRAVERY AND PUTS SHOULDER INTO THE RISK AND TELLS US TO DO SOMETHING MORE COMPLEX TEXT NIEM. IT WOULD NOT BE UNIMAGABLE TO DO THE SPACE ELEVATOR NEXT TIME. SOMETIMES THOSE BUSINESSES TAKE LONG TO RETURN BUT ALL IN ALL WE ARE HAPPY WITH WHAT WE HAVE RETURNED SO FAR.>>OKAY. ANOTHER THING I HADENED REALIZED WAS WHEN I INTERVIEWED YOUR PREDECESSOR BILL MERIT, HE SAID THAT EVERY DECISION FELL TO HIM. THERE WERE WIDE RANGING DISCUSSIONS AND EVERYONE HAS AN OPINION BUT HE SAID QUOTE, GB IS NOT A DEMOCRACY IN KNEWAY. EVERYONE KNOWS WHERE WE STAND AND WE TRY TO GIVE EACH OTHER GOOD ADVICE. SO ARE YOU THE ULTIMATE ARBITER FOR WHAT GETS FUNDED?>>I WOULD SAY MOSTLY BUT THAT SAID, THE EXCITEMENT THAT WE BRING IS PLAYING A MEANINGFUL TEAM BALL. SO IT IS NOT SO UNUSUAL GOING TO OTHER ANY SOERT SAND HILL PITCH ROOM. ENTREPRENEUR COMES IN, SPEND AN HOUR OR TWO WITH US, TAKE SOME DATA, CONSULT DATA AND A DISCUSSION WOULD ENSUE. TECHNICALLY, YEAH, I CAN COME IN AND HAVE INFLUENCE ON WHAT’S HAPPENING. BUT BECAUSE WE ARE SCALING WHAT WE ARE DOING, I TRY TO GREEN LIGHT AS MANY INVESTMENTS AS I CAN.>>HOW MANY ARE YOU GREEN LIGHTING?>>ANNUALLY I THINK TEN AND ACTIVELY, WE HAVE 300 COMPANIES AND I THINK WE HAVE DONE 600 DEALS IN 10 YEARS.>>WOW. HOW MANY PEOPLE ARE ON STAFF AT THIS POINT?>>90 PEOPLE FULL-TIME.>>AND I HAVE TO SAY YOU HAVE BEEN MORE FOCUSED IN ELEVATING WOMEN IN THE RANKS. IS THAT ACCURATE?>>ABSOLUTELY, A BIG FOCUS FOR US. WE USE A PAGE OUT OF THE GOOGLE PLAYBACK THAT SERVED THE COMPANY WELL FOR GOAL SETTING CALLED OKR’S. OBJECTIVE AND KEY RESULTS. SO WE SET SOME GOALS A COUPLE OF YEARS AGO TO MOST IMPORTANTLY, GO OUT TO THE MARKET WITH MORE FOCUS AND DO OUR BEST TO FUND A MEANINGFUL, NEW, UNDERREPRESENTED FOUNDERS. I WOULD SAY IN THE LAST 18 MONTHS, WE HAVE DEPLOYED $200 MILLION AND WE USE THE SAME FRAMEWORK TO IMPROVE THE TEAMWORK AS WELL. AND I THINK WE HAVE MADE GREAT PROGRESS THERE.>>AND I DON’T KNOW THIS OF ANY CORPORATE RUN FUNDS BUT IS THE COMMONSATION STRUCTURE THE SAME? ARE THERE MANAGEMENT FEES AND CARRIES INVOLVED?>>WE HAVE A SINGLE LB BUT WE ARE SET UP LIKE SAND FIRMS. WE HAVE A CARRY ON OUTCOMES, ALL INTERESTS ALIGNED. IT IS AN ATTRACTIVE PLACE TO DO VENTURES.>>WHEN GOOGLE FORMED THIS UNIT TEN YEARS AGO, THERE WAS A LOT OF TALK ABOUT THE DATA DRIVEN NATURE OF THE INVESTING YOU WOULD DO. CAN YOU TELL ME ABOUT THE ALGORITHMS YOU ARE RELYING ON AND HOW THEY HELP YOU IDENTIFY PROMISING COMPANIES?>>I DON’T THINK IT WOULD BE GOOGLE VENTURES WITHOUT PUTTING EMPHASIS ON THE GOOGLE PART OF THE NAME. USING DATA HAS BEEN COMMON IN OUR PRACTICE FOR YEARS. WE HAVE A TEEN OF A DOZEN TO 15 ENGINEERS THAT FOCUS ON TECHNOLOGY AND HOW THAT CAN MAKE HUMANS SMARTER. WE LOOK AT TECHNOLOGY AS AN TUBT TO ANALYZE DEALS, DISCOVER NEW OPPORTUNITIES BUT MOST IMPORTANTLY LOOK AT THE PORTFOLIO AT LARNL AND MAKE SURE WE HAVE THE RIGHT BALANCE TO DO OUR BEST TO CAPTURE INDUSTRY LEADING RETURNS.>>MORE SPECIFICALLY, WHAT ARE YOU LOOKING FOR?>>WE USE DATA IN ALL KINDS OF WAYS TO ANALYZE DEAL BY DEAL PORTFOLIO DYNAMICES, DISCOVERIES OF NEW OPPORTUNITIES.>>OKAY. HAVE YOU EVER GONE ROGUE AND DEFIED THE DATA?>>WE GO ROGUE ALL THE TIME. DATA IS THERE TO HELP BUT IT DOESN’T DICTATE WHAT WE DO IN TERMS OF INVESTMENT DECISIONS.>>WHAT ARE SOME EXAMPLES OF YOU NOT LISTENING TO THE DATA?>>AN EXAMPLE WOULD BE A COMPANY WITH TENSION WHERE THE DATA SIGNAL WILL PRESENT ITS VIEW. OTHER ATTRIBUTES MAY BE MORE IMPORTANT AND IT IS IMPORTANT TO SHOW SUPPORT WITH AN ENTREPRENEUR AND THAT’S SOMETHING WE DO.>>BUT WITH A COMPANY?>>NOTHING COMES TO MIND IN PARTICULAR. SO SPECIFIC DETAILS AT EACH COMPANY ARE HARD TO RETRIEVE.>>YOU ALSO HAVE A BIG TEAM HERE. YOU HAVE A TEAM IN EUROPE. IT SEEMS YOU ARE PREDOMINANTLY STILL DOING VENTURE IN THE U.S.. IS THAT ACCURATE?>>THAT’S CORRECT. MOST OF OUR TEAM IS IN THE U.S., SMALL TEAM IN LONDON. MOST OF THE DOLLARS WE INVEST GO INTO WHERE YOU SAY BASED COMPANIES IN A WIDE VARIETY OF SECTORS. WE DO SOME INVESTING IN EUROPE. WE DON’T IN ASIA OR LATIN AMERICA.>>THAT IS INTERESTING. THERE MAZ BEEN SO MUCH GOING ON IN ASIA. YOU TOLD ME YOU LOOKED INTO A COMPANY IN INDIA, CALLED FRESH TO HOME. HOW MUCH PERSONAL INVESTMENT ARE YOU DOING VERSUS GB AND IF THAT COMPANY WERE TO BREAK OUT, WOULD SEARGY SAY DAVID, WHY DIDN’T YOU GET INTO THAT?>>WELL, GB COULD LOOK INTO IT. BUT MARKETS WHERE WE ARE INVESTING, WE ARE HAPPY TO SUPPORT PERSONAL INTERESTS. I DO INVESTING IN CATEGORIES THAT HAVE NOTHING TO DO WITH THE MAIN LINE OF GB. I INVESTED IN A MEN’S OUTDOOR PROFESSIONAL LACROSSE LEAGUE. IT IS NOT SOMETHING THAT GB WOULD DO BUT ITS AN AREA OF PASSION FOR ME. MY KIDS PLAY LACROSSE AND A GROWING SPORT. SO WHY NOT CULTIVATE A TEAM IN ASIA?>>WE ARE TEN YEARS OLD AND WE ARE PROUD OF WHAT WE HAVE ACCOMPLISHED SO FAR BUT WE HAVE A LOT TO PROVE IN THE STATES AND SILICON VALLEY AND THE NORTHEAST. BUT WE ARE CALLED GOOGLE VENTURES AND I THINK IT IS INEVITABLE THAT WE WILL TAKE ON NEW GEOGRAPHY BUT THAT IS A FOCUS FOR TOO AND WE HAVE A LOT OF OPPORTUNITY TO FURTHER ESTABLISH OURSELVES.>>ONE OTHER QUESTION BEFORE WE ON. A COUPLE OF COMPANIES YOU HAVE FUNDED HAVE BEEN ACQUIRED BY GOOGLE, NEST LABS AND URBAN ENGINES. HOW MUCH DOES THAT FACTOR INTO YOUR DECISION MAKING, WHETHER OR NOT THIS COULD BE SOMETHING THAT ONE OF THE COMPANIES UNDER ALPHABET WOULD BE INTERESTED IN PARTNERRING WITH?>>THE SINGLE MOST IMPORTANT THING FOR GV IS FINANCIAL RETURN. IT IS CLOSE TO GOOGLE. NOT SURPRISINGLY, GOOGLE AND THE EMPLOYEES AT GV LIKE THE SAME THINGS. SO MORE THAN A DOZEN COMPANIES HAVE BEEN BOUGHT INTO GOOGLE ITSELF. WE DON’T THINK OF IT AS STRATEGIC INVESTORS. IT GOOGLE IS AT THE TABLE WHEN A TRANSACTION IS LOOMING, WE ARE MORE THAN HAPPY TO ENSURE THAT IS HAPPENING. BUT WE SELL JUST AS MANY COMPANIES TO FACEBOOK, TWITTER. FACEBOOK BOUGHT A COMPANY VERY EARLY CALLED CONTROL LABS.>>GREAT. SO LET’S TALK ABILITY BIGGER PICTURE STUFF WHILE WE HAVE YOU HERE FOR A FEW MORE MINUTES. WE TALKED ABOUT UBER AND YOU THINK UBER IS ON SALE AND AN ATTRACTIVE INVESTMENT. WE WILL SEE WHAT HAPPENS WITH THAT COMPANY. BIGGER PICTURE, ARE COMPANIES STAYING PRIVATE TOO LONG?>>NO. IT’S INTERESTING. THERE IS SO MUCH CAPITAL IN THE MARKET RIGHT NOW THAT THERE ISN’T THE BURDEN TO PUT ONE’S SELF IN A POSITION THAT IS REMARKABLY DIFFERENT FROM THE CONTROL ONE HAS WHEN IT IS PRIVATE. SO IT IS COMPANY SPECIFIC BUT IN GENERAL, THE MARKET HAS CHANGED SO MEANINGFULLY, THERE IS NOT THE PRESSURE TO SEE CAPITAL IN THE PUBLIC MARKET. YOU HAVE MANY OPTIONS TO STAY PRIVATE AND FOR MANY COMPANIES, THAT IS A GOOD THING.>>BUT IS IT GOOD FOR I GUESS AMERICANS? SO MUCH WEALTH IS BEING CREATED BEFORE THE COMPANIES GO OUT. SO ONCE THEY GO PUBLIC, THERE IS NOT A HUGE AMOUNT OF UPSIDE WITH THESE DEALS. IS THAT — TAKING YOURSELF OUT OF GV, DOES THAT RESONATE AT ALL?>>TO SOME DEGREE. ENTREPRENEURSHIP IS ONE OF THE GROWTH FACTORS IN THE ECONOMY. WE WANT TO SEE PEOPLE IN THE PUBLIC HAVE AN OPPORTUNITY TO EXPERIENCE GROWTH AND RIDE THE EVOLUTION OF THESE COMPANIES BUT AGAIN RNGS I THINK IT IS A VERY COMPANY SPECIFIC QUESTION.>>WHAT ABOUT DIRECT LISTINGS? BIG GIRLY AND MICHAEL MORRIS GATHERED 100 INVESTORS OR SO AND MAYBE YOU WERE THERE. IT’S HARD FOR ME TO IMAGINE HOW THIS IS AN APPLICABLE MODEL. I THINK EVERYONE IN THE AUDIENCE KNOWS WHAT A DIRECT LISTING IS BUT IT’S AN EVENT THAT ALLOWS COMPANIES TO GO ON PUBLIC MARKETS AND MAKE THEIR SHARES LIQUID INSTANTANEOUSLY BUT THE COMPANY IS NOT RAISING MONEY. THE THINKING IS THAT IT IS GREAT FOR COMPANIES THAT HAVE BIG BRANDS, DON’T NEED A LOT OF SUPPORT FROM INVESTMENT BANKS. WHAT DO YOU THINK?>>I THINK WE HEARD ON THIS STAGE YESTERDAY FROM THE FOUNDER OF FLACK THAT DIRECT LISTINGS ARE NOT AS CLORE AS SOME OF THE BENEFITS HAVE BEEN PRESENTED. THE COMPANY DOESN’T ALWAYS GET CAPITAL BUT I THINK THERE IS A LOT OF THINKING ON HOW TO DO A DIRECT LISTING, ENSURE THAT SHARE HOLDERS CAN GET SOME LIQUIDITY. WE WERE FORTUNATE TO BE A PART OF SLACK’S DIRECT LISTING AND IT IS GREAT NOT TO HAVE A LOCK ON DAY ONE AS AN INVESTOR.>>BUT DO YOU THINK THEY WILL PICK UP MOMENTUM OR WILL THIS STILL BE A VERY SPECIAL COMPANY THAT CAN PULL IT OFF?>>I THINK THERE IS AN OPPORTUNITY TO CONTINUE TO INNOVATE AND ADVANCE ON HOW A COMPANY WOULD FILE LIQUIDITY. DIRECT LISTINGS LOOK PROMISING. I THINK IT IS A LITTLE EARLY TO TELL.>>YOU INVESTED IN A COMPANY I’M VERY INTERESTED IN. I WILL BE MEETING JIM COLLINS, KITCHEN UNITED. A CLOUD KITCHEN COMPANY. THIS IS A HUGE TREND. I THINK THIS IS A PARTICULARLY INTERESTING COMPANY BECAUSE IT IS OPERATING IN A SPACE THAT TRAVIS SEEMS HE WANTS TO DOMINATE. HE IS MAKING BIG INVESTMENTS HERE AND ABROAD. WHY GO AGAINST HIM OR WHY JUMP INTO THE SPACE TOO?>>THAT WAS FAR FROM OUR ORIGINAL INVESTMENT. THIS IS AN INDUSTRY THAT IS EMERGING. IT HAS PROPERTIES THAT WE FIND TO BE VERY ATTRACTIVE. THE IDEA THAT A RESTAURANT BRAND CAN BE CREATED IN THE CLOUD IF YOU WILL AS OPPOSED TO IN RETAIL IS WILDLY INTERESTING TO US. THERE IS ALSO A TREMENDOUS SURPLUS OF UGLY, NOT SO USABLE FOUR WALL REAL ESTATE THAT IS LOOKING FOR A TENANT, LOOKING FOR NEW UTILIZATION MODELS. SO JIM AND HIS TEAM AT KITCHEN UNITED HAVE A LOT OF ATTRACTION HERE. WHAT WE HAVE SEEN IN THE COMTETTERS IS THERE IS MORE INTERNATIONAL THAN IN THE U.S.. BUT IT IS ABOUT THE TOP OF THE SECOND INNING, LOTS TO UNPACK AND EVOLVE HERE. BUT ONE THAT WE ARE EXCITED ABOUT THOUGH.>>GREAT. LAST QUESTION AND IT IS SORT OF A DOOZY SO I WANT YOU TO THINK THROUGH THIS. THERE IS A LOT OF TALK ABOUT REGULATING YOUR PARENT COMPANY. DO YOU THINK IT SHOULD BE BROKEN UP, REGULATED? WHAT ARE YOUR THOUGHTS ON THE WIDESPREAD ATTACKS FROM THESE AGENCIES? SO I’VE READ THE SAME FEAR AND FOCUS NEWS ARTICLES THAT YOU HAVE ABOUT THE TOPIC. I WOULD SAY I HAVE BEEN AT GOOGLE 20 YEARS. IT LIVES INSIDE MY VEINS. I’M PROUD OF WHAT THE COMPANY HAS BUILT AND PROUD TO BE A PART OF IT. FOR THE LAST TEN YEARS HAVING FOCUSED ON VENTURE CAPALIST, I’M NOT THE MOST ATHOREITATIVE EXPERT ON THOSE TYPES OF ISSUES. SO I’M GOING TO TAKE A PASS ON THAT ONE BECAUSE WHAT WE ARE FOCUSED ON IS SOMETHING TOTALLY DIFFERENT.>>CAN WE TALK ABOUT FACEBOOK? DO YOU THINK FACEBOOK SHOULD BE REGULATED?>>WE CAN IF YOU LIKE. THESE COMPANIES HAVE A LOT OF POWER AND CONTROL BUT THE SUM OF THE PIECES CAN BE VALUBLE FOR CONSUMERS AS WELL. THESE ARE COMPLICATED QUESTIONS. I THINK THESE COMPANIES WILL HAVE A LOT OF QUESTIONS TO ANSWER IN THE COMING MUPTS AND WE WILL SEE WHAT HAPPENS.>>SO WHAT’S NEXT? BASED ON YOUR DATA, WHAT DOES GV SEE AS A PROMISING AND LARGELY UNDISCOVERED AREAS OF INVESTMENT?>>I WOULD SAY THE MOST INTERESTING OPPORTUNITY THAT WE ARE ROSCUTING AS AGGRESSIVELY AS WE CAN IS WORKING ON SOME BOLD PROBLEMS AROUND THE HUMAN PODY AND IMPROVING HUMAN HEALTHCARE. OVTHE PAST TEN YEARS, WE HAVE MD’S ON OUR STAFF. TECHNICAL AND MACHINE LEARNING THAT IS FOCUSED ON RESEARCH, BIOLOGY. WE HAVE INVESTED A BILLION DOLLARS IN 100 COMPANIES FOCUSED ON SOME ASPECT OF THE HUMAN BODY. SO IF THERE IS ONE THING I’M MOST EXCITED ABOUT IS CONTINUING TO ACCELERATE WHAT WE ARE DOING THERE AND FUELLING THIS TEAM OF EXPERTS TO WORK ON HARD UNSOLVED PROBLEMS. EVEN IF WE ARE PARTIALLY SUCCESSFUL, MILLIONS OF PEOPLE CAN BENEFIT.>>GREAT. THANK YOU FOR JOINING US TODAY, DAVID.>>THANK YOU FOR HAVING ME, CONNIE.>>>ALL RIGHT. ON THE Q AND A STAGE, 10:30, MY CARD SAYS BOTH. THE CUTTING EDGE OF HEALTH TECH WITH DR. RADGEY NAJEBEY, COFOUNDER OF HEALTH, AND RACHEL HARWITS, COFOUNDER AND PRESIDENT OF CARIBOU BIO SCIENCES. CHECK IT OUT. SUBMIT YOUR QUESTIONS ON SLIDIO AND IT WILL BE GREAT. PLEASE WELCOME SAM ALTMAN AND GREG BROCKMAN AS WELL AS YOUR MODERATOR FREDERICK GRANOY. WARM WELCOME PLEASE.>>GOOD MORNING, GUYS.>>MORNING.>>MORNING.>>WE ARE GOING TO TALK ABOUT ARTIFICIAL GENERAL INTELLIGENCE. I DON’T KNOW THAT EVERYONE KNOWS WHAT THAT IS. SO GREG, WHY DON’T YOU EXPLAIN THAT TO US?>>TODAY’S ARTIFICIAL INTELLIGENCE, YOU CAN THINK OF AS TRYING TO MATCH THE FUNCTION OF INDIVIDUAL BRAIN REGIONS. SO THIS WOULD BE A SYSTEM THAT CAN UNDERSTAND AN ENTIRE DOMAIN OF STUDY, CAN UNDERSTAND MULTIPLE DOMAINS, INTEGRATE INFORMATION BETWEEN THEM AND DISCOVER NEW KNOWLEDGE, WORK WITH HUMANS TO SOLVE GLOBAL SCALE CHALLENGES THAT WE DON’T HAVE SOLUTIONS FOR.>>AND THAT’S VERY MUCH THE MISSION OF OPEN A.I. TO GET TO THAT POINT.>>NOT JUST GET THERE BUT TO MAKE SURE IT BENEFITS NOT JUST A SMALL SET OF PEOPLE BUT ALL OF HUMANITY.>>TO DO THAT, YOU FIRST SET UP A NONPROFIT ORGANIZATION. THEN YOU SWITCHED TO A FOR PROFIT BUT WITH CAPPED RETURNS FOR THE FIRST ROUND INVESTORS. WHY DID YOU DO THAT?>>THE WAY WE STARTED WITH OPENING A.I., WE WANTED THE GENERAL INTELLIGENCE TO BENEFIT EVERYONE. SO WE STARTED WITH A NONPROFIT. ONE THING WE FOUND AS WE TRIED TO BE TO BE ON THE CUTTING EDGE IS IT’S AN EXPENSIVE ENDEAVOR. YOU HAVE TO BUILD THESE MASSIVE SUPER COMPUTERS. WE NEEDED TO BE ABLE TO RAISE INVESTMENT CAPITAL. SO WE ENDED UP DESIGNING A STRUCTURE THAT IS NOT EXACTLY FOR PROFIT OR NOT FOR PROFIT. BUT WE CAN CAN TAKE INVESTMENT CAPITAL AND IF WE SUCCEED, WE ONLY OWE A FIXED RETURN FOR THE INVESTORS TO THE EMPLOYEES WHO HAVE EQUITY AND EVERYTHING ELSE IS OWNED BY THE NONPROFIT TO BENEFIT EVERYONE.>>THAT RETURN IS CAPPED AT 100X?>>THAT IS TRUE FOR THE FIRST ROUND INVESTMENT. AS WE MAKE PROGRESS, FUTURE INVESTMENTS ARE WILLING TO COME IN FOR A LOWER.>>100X IS A LOT.>>NOT FOR A START UP FOR THE FIRST ROUND. WE TRIED TO THINK ABOUT WHAT IT WOULD BE. BUT OUR GOAL IS TO HAVE RETURNS TO INVESTORS LIKE A GOOD START UP INVESTMENT BUT NOT UNPRECEDENTLY GOOD.>>AS MOVING TO THIS MODEL CHANGED HOW YOU DO YOUR RESEARCH OR BUSINESS?>>NOT AT ALL. IN SPIRIT, WE VIEW OURSELVES AS WORKING FOR THE WORLD BUT YOU HAVE TO PLAY THE FIELD. WE NEED SO MUCH CAPITAL TO DO THE WORK. WE WILL NEED MORE CAPITAL THAN ANY NONPROFIT HAS PROBABLY RAISED. SO THIS WAS A REFLECTION OF REALITY. WE PUT A YEAR’S WORTH OF WORK INTO DESIGNING A NEW STRUCTURE TO LET US KEEP OUR MISSION AND STILL BE ABLE TO SUCCEED AND GET THE CAPITAL WE NEED.>>EVEN AS A FOR PROFIT, YOU CAN WORK FOR THE WORLD?>>A CAPPED PROFIT. WE ARE AN L.L.C., NOT A STANDARD THING. WE DON’T HAVE TRADITIONAL SHARE HOLDERS. WE HAVE DOCUMENTS THAT SAY IN CLEAR WORDS AT THE TOP THAT THIS IS NOT A STANDARD INVESTMENT. WE CAN CHOOSE TO MAKE IT WORTH NOTHING AT ANY POINT. SUPER SPECULATIVE. BUT I THINK THE TECHNOLOGY WE ARE WORKING ON AS SO MUCH PROMISE THAT IF WE ARE SUCCESSFUL, IT WILL NOT BE DIFFICULT FOR US TO PROVIDE A GREAT RETURN FOR THE INVESTORS UNPRES DENTAL VALUE TO THE WORLD.>>THERE IS A BIG IF THERE. WHERE DO YOU PUT YOUR CHANCES OF BEING THE FIRST TO MAKE AGI WORK?>>WELL, IF YOU ASK A TYPICAL START UP WHAT THEIR CHAPSS ARE OF SUCCESS, YOU DON’T START BECAUSE THEY ARE CERTAIN. YOU EMBARK ON THEM BECAUSE THEY ARE IMPORTANT.>>BUT YOU HAVE A TECHNICAL CHALLENGE TO BE SOLVED, NOT JUST A SOCIAL NETWORK OUT THERE THAT MAYBE GETS USERS OR NOT.>>ABSOLUTELY. I THINK AGI, THERE HAS BEEN 60 YEARS OF DEBATE ON WHEN THIS WOULD COME. AND PEOPLE IN THE 80s AND 90s THOUGHT IT WAS JUST AROUND THE CORNER. AND IT MIGHT STILL BE JUST AROUND THE CORNER. WE CAN’T RULE THAT OUT. BUT ON THE WAY TO AGI, IT IS NOT LIKE MAKING A SNGAL BREAK THROUGH OR EITHER YOU GOT IT OR YOU DON’T. WE ARE PRODUCING THESE TECHNOLOGIES THAT ARE BECOMING MORE VALUABLE. SO IF WE TRULY SUCCEED IN THE MISSION, THAT IT CAN HELP EVERYONE, IT WILL BE ON THE ORDER OF INDUSTRIAL REVOLUTION. IF WE FAIL, WE WILL STILL HAVE AMAZING A.I. TECHNOLOGY THAT CAN BENEFIT THE WORLD.>>IT IS MAYBE WE WILL SUCCEED. MAYBE WE WON’T. WE HAVE AN ENORMOUS CHALLENGE IN FRONT OF US. BUT I WAS REFLECTING ON JANUARY 2016, OPEN A.I. STARTED IN GREG’S APARTMENT. I CAME BY A FEW DAYS AND IT WAS 8 PEOPLE SITTING AROUND A KITCHEN TABLE. I REMEMBER TALKING ABOUT WHAT WE THOUGHT WE WOULD BE CAPABLE OF OVER THE NEXT THREE YEARS. AND THAT SO BADLY UNDERSHOT WHAT 3 YEARS LATER WE WERE ACTUALLY CAPABLE OF. THAT I SUSPECT IN THE WAY THAT HUMANS ARE BAD AT ESTIMATING CURVES, WE ARE UNDERESTIMATING WHAT WE WILL ACCOMPLISH. I THINK WE HAVE TECHNOLOGY THAT LEARNS. THIS IS AN AMAZING SECRET IN THE WORLD. THAT’S WHAT MAKES HUMANS SPECIAL. WE FIGURE OUT HOW TO DO IT. THAT’S LIKE TRYING TO FIGURE OUT HOW TO GO TO THE MOON. WE ARE ABLE TO KEEP DRIVING THAT FORWARD. EVERY YEAR, I THINK THE FIELD IS DOING THINGS THAT EXPERTS SAY ARE DIFFICULT OR IMPOSSIBLE. AND IF THAT KEEPS GOING, WE WILL GET FAR.>>IS THAT WHY YOU DECIDED TO GO TO OPEN A.I.?>>YEAH. MY GENERAL STRATEGY IS IF YOU DON’T KNOW THE MOST IMPORTANT THING TO WORK ON, YOU SHOULD WORK ON MANY THINGS. I LOVE Y.C. IT WAS GREAT TO WORK ON MANY THINGS. BUT ONCE YOU IDENTIFY THE MOST IMPORTANT THING, YOU SHOULD TRY TO WORK AS HARD AS YOU CAN ON THAT. I THINK EXPECTED VALUE OF US SUCCEEDING IS BY FAR THE MOST IMPORTANT THING I CAN IMAGINE WORKING ON.>>WHAT IS THE IDEAL OUTCOME FOR OPEN A.I.?>>THE IDEAL OUTCOME IS TO SUCCEED IN THE MISSION. WHAT WE ARE TRYING TO DO IS BE AT THE CUTTING EDGE OF IMPOSSIBLE THINGS UP TO BUILDING A SYSTEM THAT CAN BE AN ARTIFICIAL INTELLIGENCE. AGAIN, IT IS ABOUT APPLYING THIS TO THE GLOBAL SCALE CHALLENGES THAT NOW SEEM LIKE THEY ARE OUT OF REACH. CLIMATE CHANGE. SO MANY ASPECTS OF THAT PROBLEM THAT ARE SUPER HARD. IF YOU THINK ABOUT SOCIETIAL PROBLEMS AND IF WE HAVE TOOLS THAT CAN WORK WITH HUMANS TO HELP US FIGURE OUT HOW TO TACKLE THAT, THAT’S WHAT WE WANT TO ACCOMPLISH.>>YOU ARE NOT DOING ANY COMMERCIAL PROJECTS YET. JUST RESEARCH. IS THAT VERY DELIBERATE?>>YES. THAT’S VERY IMPORTANT. THE WAY TO THINK ABOUT IT IS THE BEST WAY TO DO A START UP IS YOU FIND AN EXPOTHENTIAL AND WRITE IT. SO WE ARE ON THIS INSANE EXPOTHENTIAL OF A.I. POWER. IT HAS BEEN INCREASING ABOUT 5 TIMES FASTER THAN MOORE’S LAW FOR THE PAST 6 OR 7 YEARS WHICH IS AN UNPRECEDENTED AMOUNT OF PRODPRES.>>PEOPLE DON’T GET THAT. THE INTUITION BREAKS DOWN.>>SO ONE WAY TO THINK ABOUT IT IS IF YOUR PHONE BATTERY LASTED FOR ONE DAY AND YOU WAKE UP ONE DAY AND IT LASTS 800 YEARS AND FIVE MORE YEARS, IT LASTS FOR 500 MILLION YEARS. THAT’S THE KIND OF PROGRESS WE ARE SEEING ON THE COMPUTATIONAL POWER. I THINK THE MOST IMPORTANT THING IS TO ALWAYS BE AT THE CUTTING EDGE. ARE YOU SAYING IT IS A WASTE OF TIME FOR YOU TO LOCK YOURSELF INTO THE STATE OF TECHNOLOGY RIGHT NOW?>>YEAH, I THINK THAT IT IS NOT A WASTE BECAUSE THERE ARE SO MANY GOOD APPLICATIONS. ONE UPSIDE OF THIS MICROSOFT DEAL IS IT IS NOT JUST AN INVESTMENT BUT A PARTNERSHIP. WE HAVE AN ARRANGEMENT WHERE IF WE CHOOSE TO LICENSE TECHNOLOGY, THAT THEY ARE EXCITED TO COMMERCIALIZE IT AND PUT IT TO MICROSOFT PRODUCTS. THAT’S ONE WAY TO FUND THE RESEARCH AND ALSO GET BREAK THROUGHS TO MAKE IT UP TO THE WORLD.>>LET’S TALK ABOUT T THE MICROSOFT DEAL FOR A SECOND. YOU TALK A BILLION DOLLARS FROM MICROSOFT. I THINK THERE WAS CONFUSION ABOUT WHAT THAT MEANT, THE BILLION DOLLARS. CAN YOU EXPLAIN WHAT KIND OF DEAL THIS IS? IT’S NOT JUST AZURE CREDITS.>>NO, IT’S CASH. WE SPEND A LOT ON AZURE BUT IT’S CASH.>>SO WHAT IS MICROSOFT GETTING FOR THAT?>>SO AGAIN, THERE IS AN INVESTMENT SO THEY NOW HOLD SOME BUT THIS PARTNERSHIP. WE WILL BE RUNNING ALL OF OUR THINGS ON AZURE. WE ARE WORKING TOGETHER.>>EXCLUSIVELY?>>THAT’S RIGHT. WE ARE WORKING TOGETHER TO BUILD MASSIVE SUPER COMPUTERS AND PUSH FORWARD A.I. TECHNOLOGY. I THINK PEOPLE IN THE WORLD WHO USE AZURE WILL SEE THAT PLATFORM CONTINUE TO GET BETTER AND BETTER FOR DEVELOPMENT.>>IF MICROSOFT CAN COLLABORATE WITH US AND WE CAN BUILD AN AMAZING SUPER COMPUTER TO TRAIN THE MODELS ON, THAT WOULD BENEFIT US. MICROSOFT IS A GREAT PRODUCT. THAT SHOULD BENEFIT ALL AZURE CUSTOMERS.>>WHY LOCK YOURSELF INTO AZURE, THOUGH?>>IT’S LOGISTICALLY MUCH EASIER FOR US TO BE ON ONE PLATFORM. AND WE ARE INTERESTED IN PARTICULAR SUPERCOMPUTERS THAT WORK FOR OUR WORK LOADS. AND WE SORT OF TALKED TO ALL OF THE PLAYERS AND I THINK THIS IS ALREADY OFF TO A REALLY GOOD START.>>JUST HISTORICAL CONTEXT. WE HAVE USED EVERY MAJOR CLOUD AND PHYSICAL HARDWARE OVER THE COURSE OF OPEN A.I.. WE HAVE TAKEN A LOOK AT EVERYTHING OUT THERE.>>SO YOU TALKED TO ALL OF THE PLAYERS. WOULD YOU HAVE TAKEN THE SAME DEAL FROM GOOGLE?>>THE THING THAT IS PARTICULARLY GOOD ABOUT MICROSOFT IS THE DEGREE TO WHICH THEY ARE MISSION ALIGNED WITH US. IT IS HARD TO FIND A PARTNER THAT CAN REALLY SCALE WITH US ON THE CAPITAL SIDE OVER THE COMING YEARS HAVE THE CAPABILITY TO BUILD THE STRUCTURE WE NEED AND HAVE A SUPER ALIGNED VISION WITH US ON THE MISSION. AND WE ARE SUPER HAPPY TO HAVE FOUND THAT WITH MICROSOFT.>>AND I THINK IT IS EASY TO UNDERESTIMATE HOW IMPORTANT THAT IS. WE HAVE A VERY ATYPICAL MISSION. THE IDEA THAT WE MAY NEED TO SERVE THE WORLDOVER SERVING INVESTORS, THAT’S SOMETHING THAT MOST INVESTORS WILL NOT SIGN UP FOR THAT BUT CREDIT TO MICROSOFT, IT IS ALIGN TO THAT. SO THE MISSION OF MICROSOFT IS FOR IT GOOD MEW MANATEE? MEW MANATEE?>>I THINK THE THEY WANT THE INTELLIGENCE IN A WAY THAT BENEFITS THE WORLD.>>SATYA GENUINELY BELIEVES THAT A.I. WILL BE THE MOST IMPORTANT TREND FOR MICROSOFT TO GET RIGHT IN THE COMING DAYS. AND HE THINKS ABOUT IT LIKE WE DO ON DISTRIBUTING THE BENEFITS.>>YOU HAVE THE MODELS AND MONEY NOW. LET’S TALK ABOUT WHAT YOU ARE BUILDING NOW. YOU HAVE TALKED ABOUT THE MONEY. LET’S TALK ABOUT THE MULTIAGENT MODEL YOU SHOWED? MAYBE WE CAN PUT THE VIDEO ON SCREEN OF WHAT YOU SHOWED?>>WHAT WE DID WAS TRAINED SOME A.I.’S TO PLAY HIDE AND SEEK. WHAT THEY LEARNED WAS THE SEQUENCE OF STRATEGIES AND COUNTERSTRATEGIES.>>CAN WE LOOP THAT VIDEO A COUPLE OF TIMES? I THINK IT JUST WENT AWAY.>>AND SO FIRST, THEY JUST LEARNED TO HIDE IN A ROOM AND PUT BOXES IN THERE. THEN THEY LEARNED THERE WERE RAMPS THE SEEKERS COULD USE TO GET OVER THE WALLS. AND EVENTUALLY THEY FIGURED OUT HOW TO BREAK THE PHYSICS. SO THE SEEKER FINDS EARTHQUAKE CAN BREAK THE SIMULATION TO HAVE THE ULTIMATE CAT AND MOUSE TO GET TO THE BLUE GUYS IN THE CORNER. I THINK THERE IS A SECOND ONE WITH UNCONVENTIONAL STRATEGIES THAT WE DIPD KNOW ABOUT. THE SEEKERS LEARN, I CAN BOX MYSELF IN AND THE — THE HIGHERS IT BOX MYSELF IN AND THE SEEKERS LEARN TO GET INTO THE SHELTER. WE HAVE AN OPEN WORLD WHERE YOU HAVE ANLUTIONARY PROCESS. THAT IS WHAT MADE US SMART. THE QUESTION PEOPLE HAVE HAD FOR SO LONG IS CAN YOU USE IT TO MAKE A.I. SMART? AND THIS SHOWS THAT YOU CAN HAVE THEM DISCOVER STRATEGIES AND WAYS OF EXPLOITING PHYSICS IN WAYS THAT HUMANS COULDN’T HAVE I MANLENNED. THIS SHOWS WHY WE WANT TO BUILD THE SYSTEMS. WE WANT TO KEEP THE WORLD MORE OPEN AND MORE DIVERSITY OF WHAT THE THINGS CAN DO AND THEN THEY CAN DISCOVER THINGS WE DIDN’T KNOW WERE POSSIBLE.>>I THINK IN A VERY SIMPLE ENVIRONMENT, YOU CAN HAVE INCREDIBLY COMPLEX BEHAVIOR EMERGE BECAUSE AGENTS TRY TO OUTSMART EACH OTHER.>>THINKING OF HUMANS, WE DON’T HAVE LARGE BRAINS TO RUN DOWN AN ANTELOPE. WE HAVE THEM TO DEAL WITH EACH OTHER. SIMILARLY, MOST OF THE COMPLEXITY IN THE ENVIRONMENT COMES FROM THE AGENTS HAVING TO DEAL WITH EACH OTHER, INTERACT WITH EACH OTHER. I THINK THAT GIVES ME A LOT OF OPTIMISM ABOUT A PATH TO INTELLIGENCE. IF YOU IMAGINE WHAT WE SHOWED YOU ON THE 8X IMPROVEMENT HER YEAR AS THE MAULDLES GET SMARTER, I THINK YOU CAN IMAGINE ENORMOUS NEW KNOWLEDGE COMING THAT WE OURSELVES DIDN’T HAVE FROM THIS MULTIAGENT STRATEGY.>>THEY ARE EXPLOITING BASICALLY A GLITCH IN THE SET UP, IS THAT WHAT’S HAPPENING? AND THEY FIGURED OUT A WAY TO DO THAT? IS THAT A GOOD THING?>>IT’S AN INTERESTING THING. I THINK ULTIMATELY IS WHAT WE WANT ARE A.I.’S TO WORK WITH US TO SOLVE PROBLEMS WE CAN’T. WHY DO WE WANT TOOLS AT ALL? TO EXTEND WHAT HUMANS CAN DO. IT HIGH LOITS THE FACT THAT WE WILL HAVE TO THINK ABOUT AS THE SYSTEMS COME TO THE SOCIETY, YOU DON’T WANT IT TO DO A CRAZY STRATEGY THAT HAS BAD EXTURN ALTIES. SO IT IS ABOUT SAFETY AND HOW WE GET THIS TO DO WHAT WE WANT ALIGNED WITH HUMAN VALUES.>>GETTING THE SYSTEMS WHAT WE WANT, NOT WHAT WE TRY TO SAY WILL BE INCREASINGLY IMPORTANT.>>INTERESTING.>>I THINK THAT THERE ARE A LOT OF PEOPLE OUT THERE THAT THINK THIS PROBLEM IS INTRACTABLE. LIKE HOW ARE YOU SUPPOSED TO RIGHT DOWN THE REWARD FUNCTION FOR HUMANITY? HOW DO YOU RIGHT DOWN WHAT YOU WANT? AND THIS IS THE KEY INSIGHT. WE HAVE TECHNOLOGY THAT CAN LEARN WELL, ALL OF THESE PROBLEMS THAT HUMANS CANNOT SPECIFY AND WE ARE TRYING TO DO THE SAME THING WITH WHAT DO HUMANS WANT.>>SOME PEOPLE WOULD BE NERVOUS ABOUT THAT.>>TELL ME MORE ABOUT WHY.>>IN TERMS OF, YOU MAY HAVE GOOD INTENTIONS TRAINING THESE MODELS, RIGHT? SOMEONE ELSE MAY SAY THE REWARD MODEL IS VERY DIFFERENT.>>SO THIS IS — ALL OF THE THINGS WE ARE TALKING ABOUT ARE THE TECHNICAL PROBLEMS, CAPITAL, HOW TO BUILD THE COMPUTERS. THIS IS THE MOST IMPORTANT QUESTION. LET’S SAY YOU CAN SUCCEED AND BUILD SUPER POWERFUL SYSTEMS. WHAT VALUES ARE IN THERE AND WHOSE VALUES ARE THEY? WE ARE NOT VERY GOOD ON AGREEING WITH A GLOBAL VALUE SYSTEM. WE HAVE A POLICY TEAM WHOSE JOB IT IS JUST TO THINK ABOUT THIS.>>DO YOU HAVE ANY RESULTS FROM THAT? HOW DO YOU APPROACH THAT?>>I THINK THERE ARE SOME THINGS MOST OF HUMANITY AGREES ON AS VALUES. AND THERE ARE A FEW BIG SPECTRUMS AND WORLD PHILOSOPHIES. INDIVIDUALISM VERSUS COLLECTIVISM IS ONE BIG ONE. HOW WE START A PROCESS NOW, ABOUT A GLOBAL DISCUSSION ABOUT WHAT DEPLOYMENT OF ADVANCED A.I. IS GOING TO LOOK LIKE, WE HAVE TURNED OUR ATTENTION TO THAT GIVEN THE ACCELERATION OF OUR RESULTS. WE JUST PUT A TEAM ON THAT FOR THE FIRST TIME SAYING THIS SOUNDS A LITTLE PREMATURE BUT BETTER BE A LITTLE EARLY THAN A LITTLE LATE. I THINK WHAT IT COMES DOWN TO IS STEP ONE, A GLOBAL DISCUSSION WHICH HAS NOT BEEN STARTED. AS PEOPLE START TO TAKE THIS SERIOUSLY. AS THE NONTECH WORLD STEAKS IT SERIOUS LE. THE FIRST STEP IS A DISCUSSION ON WHAT WE WANT ON THE OTHER SIDE?>>AND IT’S NOT JUST A SILICON VALLEY PROBLEM. SILICON VALLEY HAS STARTED TO ISOLATE ITSELF AND THAT IS CAUSING ISSUES. FOR THE MOST POWERFUL TECHNOLOGY EVER, WE HAVE TO GET GLOBAL ENGAGEMENT.>>IN PART I’M ASKING BECAUSE YOU HAD THE OTHER RESULT, GPD2, A MODEL THAT CAN CREATE TEXT ON A PROMPT. LIKE IN AN ENGLISH CLASS. YOU DECIDED TO WITH HOLD SOME OF THE MODELS FOR A WHILE AND ROLL IT OUT IN A STAGED FASHION BECAUSE YOU THOUGHT THE MODEL WAS TOO GOOD?>>THIS IS A RESULT THAT IS FIVE YEARS OF WHERE WE THOUGHT WE WOULD GET IT. WE GENERATED THIS MODEL THAT WAS JUST TRAINED BY LOOKING AT INTERNET TEXT. YOU COULD ASK IT TO WRITE AN ESSAY ON RECYCLING. WE HAD NEVER SEEN ANYTHING LIKE IT. EVERYONE WHO LOOKED AT IT THOUGHT THE IMPLICATIONS WERE OBVIOUS BUT WE COULDN’T AGREE ON WHAT THE IMPLICATIONS WERE. SOME PEOPLE THOUGHT IT WAS BENIGN. OTHER PEOPLE THOUGHT THAT IT COULD POTENTIALLY BE USED FOR MALITIOUS PURPOSES LIKE GENERATING FAKE NEWS AT AN UNPRECEDENTED SCALE. WHEN WE STARTED THIS COMPANY, WE ALWAYS KNEW THAT NOT PUBLISHING EVERYTHING WOULD BE A PART OF THAT. WE KNEW IT WOULD BE IMPORTANT TO BE A YEAR OR TWO EARLY RATHER THAN A YEAR OR TWO LATE. WE MAY HAVE BEEN EARLY BUT WE DID A STAGE RELEASE FOR ROLLING OUT BIGGER AND BIGGER.>>WHY A STAGED RELEASE? SOME ACCUSED YOU OF IT BEING A PUBLICITY STUNT. OF SAYING OUR STUFF IS SO GOOD THAT IT IS DANGEROUS.>>WE DIDN’T STAY IT WAS DANGEROUS. WE SAID WE WERE NOT SURE. AND THIS IS A GOOD TIME FOR A PRACTICE RUN AT A MINIMUM. IT CERTAINLY GOT REPORTED AS US SAYING IT WAS TOO DANGEROUS. BUT WE DEFINITELY NEVER SAID THAT.>>FAKE NEWS? YOUR A.I. WROTE THAT. I THINK PUBLICATION NORMS DESERVE A CONVERSATION.>>I THINK THAT WORKED. WE ARE NOW AT A STAGE WHERE THERE IS AN INDUSTRY WORKING GROUP THAT IS THINKING ABOUT THE PROBLEMS AND WE HAVE SEEN VARIOUS PEOPLE REPLICATE THE MODEL AND ALSO HOLD IT BACK. IT IS NOT ABOUT GP2.>>GP20 WILL BE CAPABLE OF MISUSE.>>AND I’M GLAD WE TOOK A LOT OF THE EMOTIONS THAT PEOPLE WANTED TO POUR OUR WAY. FUNNY, THERE WAS ALSO A LOT OF SUPPORT. I SWEETED SOMETHING ABOUT THE RECYCLING THING AND I GOT A LOT OF LIKES SAYING I CAN’T BELIEVE PEOPLE ARE NOT TAKING THIS SERIOUSLY. CAN’T BELIEVE PEOPLE THINK THIS IS FUNNY. AND I LOOKED AT THAT AND THOUGHT, EXACTLY WHY WE ARE TAKING IT SERIOUSLY.>>WHEN ARE YOU GOING TO ROLL OUT THE FALL MODEL?>>IF NOTHING CRAZY HAPPENS, WITHIN THE NEXT COUPLE OF MONTHS. IF YOU LOOK AT THE RAMP, WE RELEASE A VERSION, GET A DTA AND GO FROM THERE.>>AND INTERNALLY YOU HAVE GP10 THAT YOU ARE NOT SHOWING?>>WE DO NOT COMMENT.>>ALL OF THIS WORK YOU HAVE BEEN DOING ON THE MULTIAGENT, THE GTP. IT’S ALL WITHIN THE — NOT THE AGI REALM. HOW DOES THIS WORK GET YOU THERE?>>SO THE WAY THAT WE THINK ABOUT PROGRESS, I THINK THE WAY IN SCIENCE YOU THINK ABOUT YOUR PROGRESS IS ABOUT IDEAS. IT IS A MATTER OF I CAME UP WITH THIS THEORY THAT EXPLAINS THIS PHENOMENON AND IT EXPLAINS EVERYTHING. AND I THINK WE TAKE A START UP MINDSET TO THINK OF CAPABILITY. CAN WE SOLVE THIS SUPER HARD CHALLENGE. AND DOING SO, WE THINK WILL GENERATE GENERAL PURPOSE METHODS THAT CAN BE USED ELSEWHERE. WE BEAT A MACHINE THAT BEAT IN A GAME AND POINTED AT ROBOTICS TO SOLVE A ROBOTIC HAND PROBLEM THAT NO ONE HAD BEEN ABLE TO SOLVE. SO EVERYTHING WE GENERATE STILL HAS LIMITATIONS BUT SOMEHOW THEY ARE MORE POWERFUL AND ABLE TO DO THINGS YEARS AHEAD OF WHAT WE THOUGHT WERE POSSIBLE. AS LONG AS WE ARE ON THAT RAMP, I THINK WE ARE SUCCESSFUL.>>DO YOU THINK THAT IS ENOUGH? MAKING THE CURRENT METHODS BETTER OR DO YOU NEED A NEW TECHNOLOGY AT SOME POINT?>>I THINK THERE IS ONLY ONE WAY TO FIND OUT. THE HOPE WITH DOTEA, WE WERE HOPING THE CURRENT METHOD WOULD HIT A WALL. WE WOULD PUSH IT AND IT JUST WOULDN’T DO IT. THAT IS THE CURRENT UNSOLVED CHALLENGE IN A.I. IS TRYING TO FIND A REAL TASK THAT WE CAN’T SOLVE THROUGH PUSHING THE EXISTING METHODS.>>WE HAVE TO FAIL AT SOMETHING TO KNOW WHAT TO DO NEXT. BUT IF YOU LOOK AT CAPABILITIES, STUFF LIKE DOTA, THE MULTIAGENT ROBOT, GIVEN A GOAL AND A SIMULATOR, WE CAN SOLVE THAT. GBT2, GIVEN MASSIVE INFORMATION, WE CAN SOLVE THAT. THOSE ARE TWO PRETTY POWERFUL CAPABILITY.>>GTP2 IS TERRIBLE AT MATH. ASK IT TO ADD NUMBERS, IT STARTS MAKING THINGS UP.>>BECAUSE THE DATA YOU FED IT HAS NOTHING TO DO WITH MATH?>>EXACTLY. MAYBE IF YOU FEED SOME DATA THAT HAS TO DO WITH MATH BUT MAYBE WE ARE MISSING REASONING. RIGHT NOW, WE DON’T KNOW THE ANSWER. THAT’S SOMETHING WE ARE TRYING TO DISCOVER.>>IT CAN WRITE A BOOK AT THIS POINT.>>THAT’S RIGHT. MAYBE A GOOD THING TO WRAP IT UP IS I BROUGHT ON STAGE THIS BOOK. IT WAS NOT WRITTEN BY A HUMAN. IT WAS WRITTEN BY GTP2. YOU CAN LOOK THROUGH IT. YOU CAN SEE THAT IT HAS A LOT OF NICE MECHANICS FOR THIS GAME, LOTS OF LISTS OF ITEMS. I THINK THIS SHOWS YOU WHY THESE TECHNOLOGIES ARE AMAZING TODAY. YOU CAN WORK WITH THEM IN ORDER TO BUILD ARTIFACTS OR BUILD CREATIVE THINGS THAT HUMANS WOULDN’T BE ABLE TO DO ON THEIR OWN.>>SO A.I. IS A BIT OF A NUFRP.>>TURNS OUT.>>WHAT IS THE NEXT BIG STEP YOU ARE EXPECTING TO SEE?>>CONTINUE THE RAMP. I THINK THAT REASONING IS A GOOD EXAMPLE OF A TECHNOLOGY THAT NO ONE HAS EVER SEEN. I THINK THAT GPD2 IS ON THE CUSP OF HAVING MACHINE THAT CAN TALK AND UNDERSTAND US. BUT WE ARE NOT QUITE THERE. I THINK THERE IS WORK THAT WE AND EVERYONE ELSE IN THE FIELD ARE TRYING TO DO TO GET THERE.>>ARE YOU HAPPY ABOUT YOUR MOVE?>>YES.>>GOOD. I’M HAPPY ABOUT THE INTERVIEW. THANKS, GUYS.>>THANK YOU SO MUCH.>>>SO DOES EVERYONE FEEL LIKE THEIR BRAINS ARE BIGGER NOW? NO, WE DON’T LAUGH AT YOUR JOKES, JORDAN. THANKS, LOVE YOU TOO. THANKS, GREEN SHIRT, YOU ARE MY NEW FAFB. OKAY. ON THE EXTRA CRUNCH STAGE AT 11:00, HOW TO BUILD A SECURE START UP WITHOUT SLOWING GROWTH WITH HEATHER ATKENS WITH INFOSECURITY AT GOOGLE. JENNIFER STEVENS AT IO ACTIVE AND DOUG SONG, GENERAL MANAGER AT DUO. A LOT OF FUN. THE LAST TIME THAT WE HAD OUR NEXT GUEST, HE BROUGHT A LITTLE PUPPY ON STAGE AND I WAS THINKING HOW NICE IT WOULD BE TO CUDDLE WITH A HUSKY, KIND OF LIKE THE HUSKY FROM GAME OF THRONES. YOU GUYS WATCH GAME OF THRONES? NOBODY GIVES A SHUT ABOUT WHAT I SAY UP HERE. HOW ABOUT FLYING CARS? A WARM WELCOME POLICE.>>ALL RIGHT. GAME OF THRONES DOESN’T EXCITE ANYONE BUT APPARENTLY FLYING CARS DOES. SO WE ARE IN THE RIGHT SPOT WITH THE RIGHT GROUP OF PEOPLE. SEBASTION, THANK YOU FOR COMING BACK TO DISRUPT. YOU ARE A PART OF THE DISRUPT FAMILY NOW. YOU HAVE BEEN ON STAGE MORE TIMES THAN I HAVE.>>I LOVE THIS CONFERENCE. GREAT TO SEE SUCH A GREAT AUDIENCE NOW.>>HE IS TELLING YOU TO APPLAUD. HE LOVES THE AUDIENCE.>>I SHOULD APPLAUD.>>AS JORDAN MENTIONED TWO YEARS AGO, YOU WERE ON OUR STAGE AND YOU BROUGHT A PUPPY ON STAGE. AT THAT TIME, YOU SAID THAT FLYING CARS WILL BE THE HOT NEW THING. I’VE BEEN COVERING BOLD PREDICTIONS LIKE THIS FOR A LONG TIME. HERE’S HOW IT LOOKS TO ME. A LOT OF COMPANIES ARE PURSUING FLYING CARS RIGHT NOW. BUT IT DOESN’T APPEAR WE ARE ANY CLOSER TO GETTING PEOPLE IN THESE VEHICLES. AM I WRONG ABOUT THAT?>>ANY TECHNOLOGY, SPECIFICALLY TAKES A WHILE. YOU WANT TO MAKE SURE IT IS REALLY SAFE. IT DOESN’T DETER US FROM THE VISION TO UNDERSTAND THAT IF YOU TAKE DAILY TRAFFIC FROM THE GROUND A FEW HUNDRED FEET IN THE AIR, WE COULD FREE THE WORLD FROM TRAFFIC. WE HAVE TECHNOLOGY THAT CAN GET YOU FROM HERE TO SAN JOSE IN 15 MINUTES. FROM HERE TO UC BERKELEY IN LIKE 4 MINUTES. SO NOW THE ONUS IS TO MAKE IT SAFE, WORK OUT THE DIFFICULTIES AND CHALLENGES, FIND A WAY TO OPERATE THEM SAFELY AND GET SOCIAL ACCEPTANCE AND TRY TO CHANGE THE WORLD.>>WHAT ABOUT AUTONOMOUS VEHICLES. THAT USED TO BE YOUR THING. WHAT HAPPENED WITH AUTONOMOUS VEHICLES?>>I’M NOT WORKING WITH IT MYSELF. I WOULD SAY THEY ARE ALSO AUTONOMOUS BUT HIGHER UP IN THE AIR. IF YOU GO A BIT HIGHER IN THE AIR, THEN THE DIFFICULTY OF HITTING THINGS VANISHED.>>MAYBE BUILDINGS.>>JUST GO ABOVE THE BUILDINGS AND TREES. AND THERE ARE VEHICLES THAT DO THIS, HELICOPTERS. THEY ARE INCREDIBLY NOISY AND EXPENSIVE. NAPA ILLEGALIZED PERSONAL HELICOPTER FLIGHTS BECAUSE THEY ARE TOO NOISY. SO ONE OF THE BIG QUESTIONS IS CAN WE MAKE THEM QUIET.>>SO I THINK IT IS IMPORTANT AT THIS POINT TO EXPLAIN WHAT A FLYING CAR IS AND HOW THAT IS DIFFERENT FROM A PLANE. WE LIKE TO THROW THE WORDS AROUND BUT IT IS NOT CLEAR.>>IT IS NOT A CAR. I DON’T LIKE THE WORD FLYING CAR BUT IT IS VERY CATCHY. THE TECHNICAL TERM IS EVEETAL. THEY ARE ELECTRICALLY PROPELLED VEHICLES THAT CAN TAKE OFF VERTICALLY. SO YOU DON’T NEED AN AIRPORT. THEY FLY LIKE A REGULAR PLANE.>>SO I WANT TO DO A POLL REALLY QUICKLY. HOW MANY PEOPLE THINK THAT FLYING CARS, WE DON’T LIKE THAT TERM BUT FLYING CARS WILL BE HERE IN 20 YEARS, EITHER IN SAN FRANCISCO OR? OKAY. WHAT ABOUT IN 10 YEARS? WHAT ABOUT IN 5 YEARS? FEWER HANDS BUT IS YOUR HAND UP FOR 5 YEARS?>>I HAPPILY LIFT IT FOR 5 YEARS. I’M SUPER IMPATIENT.>>THE COMPANY YOU ARE RUNNING IS ONE OF MANY FLYING CAR COMPANIES THAT HAVE EMERGED IN THE PAST FEW YEARS. I’M WONDERING WHAT KITTY HAWK IS OPTIMIZING FOR? WHAT ARE YOU GOING TO DO TO SURVIVE?>>IT IS AN OPEN MARKET. TOO EARLY TO CALL A WINNER. WE FOCUS FOREMOST ON SAFETY, NO QUESTION. SECONDLY ON NOISE. FOR THIS TO BE ACCEPTABLE, IT HAS TO BE BASICALLY IMPER CEPTABLE. IT HAS TO BE ABLE NOT TO DISRUPT YOU. I EVEN FIND DRONES WAY TOO NOISY. THEY ARE ANNOYING. I WANT TO BE SO QUIET, LIKE THE WIND.>>IT IS INTERESTING YOU BROUGHT THAT UP. KITTY HAWK HAS THREE VEHICLES. WE KNOW OF TWO. ONE IS THE FLIER AND ONE IS CORA. A WEEK AGO, I GOT A CHANCE TO SEE A SUPER PROJECT THAT YOU HAVE BEEN WORKING ON FOR A COUPLE OF YEARS THAT IS CALLED HEAVY SIDE. AND IT IS QUIET. SO TELL ME WHAT IS HEAVY SIDE? AND ONCE YOU FINISH DESCRIBING IT, I THINK WE HAVE A VIDEO TO SHOW.>>IT IS A PROJECT LED BY DAVID VANDERLAND AND IT IS A MIXTURE BETWEEN A MIXED WING AIRCRAFT AND A DRONE. IT TAKES OFF LIKE A DRONE. THE NOISE LEVEL IS LIKE A LEAF BLOWER, NOT SUPER QUIET. BUT WHEN IT IS IN FORWARD FLIGHT, IT IS SUPER QUIET AND EFFICIENT. LAST WEEK, WE WERE ABLE TO FLY IT OVER 102 MILES TOTAL WITH 100% RESERVE IN THE BATTERY. SO IT IS A PROTOTYPE TO SHOW THAT THE TECHNOLOGY IS GENERALLY FEASIBLE.>>SO DOES ANYONE WANT TO SEE IT? SHALL WE SHOW THE VIDEO? THIS IS WHAT KITTY HAWK HAS BEEN WORKING ON. SO I CAN’T SAY WHERE AS WE WAIT FOR THE VIDEO TO COME UP. I CAN’T SAY WHERE IT WAS BUT I DO KNOW IT WAS COMPLITHED FOR ME TO GET THERE. WE DID A LITTLE BIT OF A TEST. WE COMPARED THE NOISE OF A HELICOPTER TO THE HEAVY SIDE. AND ARE WE SHOWING YET? ALL RIGHT. HERE WE GO.>>PROJECT HEAVY SIDE IS KITTY HAWK’S LATEST ELECTRIC VEHICLE. IT IT IS FAST, SMALL, AND EXCEEDINGLY QUIET. HEAVY SIDE IS 100 TIMES QUIETER THAN A REGULAR HELICOPTER. INTRODUCING HEAVY SIDE. WE ARE BUILDING THE FUTURE WITHOUT ADDING IN THE NOISE. . >>>TO MEASURE. THERE WAS SOUND. >> YEAH. YOU SAW IT AT SIX FEET. WHEN IT GOES TO 1,500 FEET IT’S AS QUIET AS IT GETS. IF YOU STEP OUT IN SAN FRANCISCO THE CITY IS ABOUT 70DEC IB ELS, GOOGLE IS 50, IF YOU CLIMB MOUNT WHITNEY IT’S 40. THAT’S ROUGHLY THE NOISE LEVEL. >> WHEN ARE WE GOING TO SEE THIS WHEN WILL IT BE PUBLIC >> YOU JUST MADE IF PUBLIC THIS VERY MOMENT. >> WHEN ARE WE GOING TO BE — EITHER BUY IT OR RIDE IN IT >> THERE IS — HURDLES. THERE IS — A REGULATORY HURDLE. THE FAA IS VERY OPEN MINDED. WE HAVE TESTED IT AS A PART TIME ADVISER WHO IS A SIFTING US, NAVIGATING THIS. THE QUESTION IS WHAT WOULD HAPPEN IF THERE ARE TEN THOUSAND OF THEM IN THE AIR. HOW DO WE KEEP THE AIR SAFE WHAT WOULD PILOTS DO WHO WOULD OPERATE, TO MAKE SURE THEY DON’T BUMP INTO EACH OTHER. THEN A GENERAL QUESTION OF THE ACCEPTANCE. WE WANT THIS TECHNOLOGY TO BE FOR EVERYBODY. WE WANT IT TO BE AVAILABLE FOR EVERYBODY, NOT JUST RICH PEOPLE. IDEALLY IT WOULD BE AN AIR TAXY SERVICE WHERE YOU CALL IT BY AN APP. >> THE HEAVY SIDE JUST FITS ONE PERSON. I WAS ABLE TO SIT IN IT. SOME OF IT — THE INTERFACE WAS NOT IN THERE. I’M WONDERING HOW DO YOU REALLY MAKE THIS NOT JUST FOR THE SUPER RICH IN IT’S QUITE STUNNING. IT’S BEAUTIFUL. I’M TRYING TO IMAGINE HOW YOU GET THE COST DOWN. YOU MENTION THROUGH SOME SORT OF SHARED NETWORK. REALLY HOW ARE YOU GOING TO DO THAT WHAT WOULD THE COST POTENTIALLY BE >> YES. TODAY AND THEN TOMORROW. TODAY OBVIOUSLY THIS THING IS EXPENSIVE AND FUNDING IT WITH LARRY’S MONEY, OTHER MONEY. FROM THE COST PERSPECTIVE THERE’S THE REGAL ITSELF BECAUSE IT MAYBE A THIRD OR A QUARTER OF A CAR. IT SHOULD BE NOT MORE EXPENSIVE PER POUND THAN WHEN MASS MANUFACTURED. FROM THE ENERGY SIDE ALMOST ALL OF THE ENERGY IS BEING USED FOR DRAG AND NOT FOR LIFT. LIFT IS THIS THING THAT KEEPS YOU UP HERE. IT’S THE EXTRA PRICE YOU PAY FOR NOT BEING ON THE GROUND BUT DRAG IS THE ENERGY YOU USE TO COMBAT THE AIR BECAUSE YOU CAN GO ON A STRAIGHT LINE WE BELIEVE WE WILL BE A THIRD OF THE ENERGY COSTS PER MILE AS A TESLA. >> AS TESLA >> YES. AND IT’S VERY EFFICIENT. WHAT DO YOU SEE FOR THIS — WITH IN A CITY. LET’S SAY LIKE SAN FRANCISCO WHERE WE ARE TODAY. DO YOU SEE THIS — AS A COMMUTER VEHICLE ONLY AS A COMMUTER VEHICLE WHEREAS THE FLYER AND CORA HAVE DIFFUSE CASES >> YES. I MEAN — FROM A TECH PERSPECTIVE. RANGE, SAY 100 MILES PLUS RESERVES. LET’S SAY ABOUT TEN TIMES AS FAST AS GROUND TRANSPORTATION. THE AVERAGE CAR IS ABOUT 18 MILES AN HOUR. WE CAN GO — FROM HERE TO BERKELEY IN A FEW MINUTES. I WOULD IMAGINE THE UTILITY. HOPE ALL OF YOU WHEN YOU ARE STUCK IN TRAFFIC REMEMBER THIS LITTLE PRESENTATION THIS MORNING AND IMAGINE WHAT YOU COULD DO WITH A FLY APP A FEW FEET. HOW COOL THAT WOULD BE. THEN ANY QUESTION — HOW DO WITH YOU GET IT SAFELY INTEGRATED THR-RS WORK TO BE DONE. I WOULD LOVE TO BE ABLE TO LIKE LAND ON ANY STREET CORNER THAT. WILL BE TRICKY TODAY BECAUSE OF OVERHEAD WIRES. THERE’S SOME WORK THAT HAS TO BE DONE TO INTEGRATE IT. A HUNDRED YEARS AGO WE WERE ALL ABOUT HORSES AND THEN THE CAR, AND THEN SOMEONE INVENTED THE SCAR AND SUDDENLY I THINK NEW YORK CITY FLIP FROM ALL HORSES TO ALL CARS IN 20 TO 30 YEARS AND THEN WE BUILT PAVEED ROADS AND GAS STATIONS AND GARAGES AND SO ON. WHEN — IT’S A BETTER ABILITY TO GET OURSELVES AROUND I THINK WE WILL FIND WAYS TO USE IT. >> DO YOU SEE BEING ABLE TO WALK OUT ON THE STREET CORNER LIKE YOU SAID AND HAVE AN PP OR DO YOU SEE THIS MORE AS CENTRAL POINTS HUBS IF YOU WILL WHERE YOU GO AND THAT’S WHERE YOU PICK UP YOUR — YOU KNOW HEAVY SIDE >> WITH ALL THREE PROJECTS, WE WANT TO BUILD AN AIR TAXI SYSTEM. I BELIEVE AN AIR TAXI SYSTEM IS BETTER BECAUSE IT GETS BETTER USE PER VEHICLE. IT PAINS ME THAT I WALK ON THE STREETS OF SAN FRANCISCO AND THERE’S SO MANY PARKED CARS. WHAT A WASTE. EVEN TODAY WITH UBER AND LYF WE ARE STARTING TO USE CARS MORE EFFICIENTLY. WITH SELF-DRIVING WE CAN USE THEM MORE EFFICIENTLY. WITH FLYING CARS THERE’S NO DIFFERENT. IF YOU CAN — I BELIEVE IF YOU CAN SHARE THOSE AS AN AIR TAXI SYSTEM THE COST PER MILE CAN GO TO SOMETHING LIKE 30-CENTS A MILE EVENTUALLY. >> WHAT’S THE BIG CHALLENGE YOU MENTIONED REGULATION. IS THAT IT IS THAT THE LAST — >> IT’S A BIG ONE. THE FAA HAS BEEN TRUSTED BY CONGRESS TO MANAGE THE NATIONAL AEROSPACE. IT’S BASICALLY ANYTHING YOU CAN REACH WITH YOUR HAND. IN THE PAST THERE HAS BEEN AT MOST SIX, SEVEN, EIGHT VEHICLES IN AN AREA AT THE SAME TIME. IF YOU LOOK UP HERE WE HAVE THREE MAJOR AIRPORTS. YOU WILL SEE AT MOST TEN AIR CRAFT. NOT JUST US. AMAZON, GOOGLE COME ALONG AND SAY HOW ABOUT TEN THOUSAND IT TURNS OUT THERE’S NO TECHNOLOGY TODAY THAT COULD MANAGE TEN THOUSAND VEHICLES SAFELY YET. ACCORDING TO — TO THE STANDARDS THAT THE FAA WANTS TO SEE. WE KNOW THAT ACCIDENTS IN AVIATION ARE MORE TRAGIC THAN SOMEONE ON THE GROUND. THE TRICK WILL BE TO WORK WITH AUTHORITIES AND OTHER TECHNOLOGY COMPANIES, TO REDESIGN AND REDEFINE HOW WE MANAGE AEROSPACE. I’M HOPEFUL BECAUSE THE SKY IS EMPTY. YOU CAN LOOK UP AND THERE’S NOTHING THERE. THE ABILITIES THERE. WE HAVE THE HIGHWAYS. WE HAVE THE VOLUME. IT’S JUST A WAY — TO WORK WITH THE GOVERNMENT, WITH AUTHORITIES TO FIND WAYS TO MANAGE IT RESPONSIBLY. >> YOU MENGED THAT A FORMER FAA ADMINISTRATOR IS — WHO IS THERE FOR FIVE YEARS IS GOING TO BE ADVISING YOU. IS HE GOING TO BE DIRECTLY WORKING WITH THE FAA IN TERMS OF HELPING CRAFT RULES AROUND THIS OR UP FOR — THE INDUSTRY AS A WHOLE OR IS HIS ROLE GOING TO BE MORE ABOUT HELPING KITTY HAWK >> FOR THE TIME BEING IS HE JUST HELPING US. THERE’S A LIMITED SUPPORT HE CAN DO IF WHá HE JUST LEFT THE FAA. OVERALL WHAT I REALLY SEE IS IT’S A BROAD DIALOGUE. WE TALK TO THE FAA ALMOST DAILY. I CAN TELL YOU AT THE CORE OF THE CONVERSATION IS A 100% COMPLIANCE AND INTEREST. BOTH THE FAA AND US WANT TO BE SAFE. IT DOESN’T HELP IF IT’S UNSAFE. BOTH OF US WANT TO BE INNOVATIV. EVERY PERSON I MEET WANTS TO DRIVE THE COMPANY FORWARD. HAS A VISION FOR THE COMPANY. THE DIFFERENCE IS WE ARE TECHNOLOGISTS. WE DON’T HAVE THE SAME SKILL SET AS THE FAA WE DON’T HAVE THE SAME EXPERIENCE. AS YOU MAY HAVE HEARD WE STARTED A PARTNERSHIP WITH BOEING AND CORA SPECIFICALLY TO BRING IN AN EXPERIENCED COMPANY TO HELP US IN MAKING SAFE AND SAFELY GO TO THE MARKET. TO ME THIS IS A GREAT OPPORTUNITY FOR DIALOGUE. I HAVE DONE THE SAME FOR SELF- DRIVING CARS BEFORE. MY TEAM STARTED ALL THE LEGISLATIVE WORK IN NEVADA AND CALIFORNIA AND FLORIDA, OTHER PLACES. WE FOUND THE DMV THE CHP, ALL — INCREDIBLY FORWARD LOOKING THOUGHTFUL. THIS — WILL BE NO DIFFERENT. >> YOU MENTIONED AIR TRAFFIC CONTROL AND I’M WONDERING WHAT SORT OF INNOVATION IS THAT SOMETHING MORE AUTOMATED BECAUSE THERE IS PRESSURE ON THE PEOPLE WHO DO AIR TRAFFIC CONTROL. >> YEAH. I’M A PILOT MYSELF. I WOULD SAY — THE INTERACTIVE — IS BERSOME. THERE’S WAYS TO AUTOMATIC MATE THINGS. WHEN YOU THINK ABOUT FLIGHT OF THE FUTURE. ONE OF THE NICE THINGS IS WE CAN INSTRUMENT EVERY FLYING VEHICLE WITH A TRANSPONDER. WE CAN’T DO THE SAME ON THE GROUND. WE CAN’T INSTRUMENT EVERY CAT AND DOG WITH A TRANSPONDER. IN THE AIR WE CAN DO THIS. WE CAN HAVE A SITUATION WE KNOW WHERE EVERYBODY IS. AND WHERE EVERYBODY IS GOING. THAT’S A TECHNOLOGY THAT IS — DOABLE. WE HAVE MULTIBILLIONS OF CELL PHONES THAT REPORT WHERE THEY ARE. WE KNOW WHERE THE CELL PHONES ARE. IT’S NOT THAT HARD TO IMAGINE. ONCE THAT HAPPENS, I WOULD — BELIEVE THAT AVIATIONO BE AUTOMATED. YOU DON’T WANT TO FLY MANUALLY. YOU WANT TO BE FLOWN. THE TECHNOLOGY IS — SO MUCH EASIER THAN FOR SELF-DRIVING CARS. I BELIEVE YOU WILL BE DONE WITH SELFFLYING VEHICLES LONG BEFORE WE ARE DONE WITH SELFFLYING CARS. >> OKAY. THAT’S A BOLD PREDICTION. WE WILL HAVE TO RESIST THAT ONE IN A COUPLE OF YEARS. >> TWO YEARS FROM NOW. INVITE ME. >> WHEN DO YOU DAY THAT WILL BE ACHIEVED, NOT JUST KITTY HAWK BUT BEING ABLE TO ACHIEVE WHAT YOU JUST LAID OUT >> I THINK THAT — THE BEST PROGRESS WE HAVE SEEN SO FAR IS ACTUALLY IN THE COUNTRY OF NEW ZEALAND WHERE WE HAVE BEEN WORKING WHERE THE REGULATORS HAVE PUT FORWARD A SPECIFIC PATH TOWARD REMOTELY PILOTED AIR TAXI SYSTEMS. FIRST FOR RECREATION AND THEN FOR — THREE TO FIVE YEARS. THERE IS A SPECIFIC PATH OF THE — THAT ARE NOW LAID OUT WHICH REALLY HELPS. IN THE UNITED STATES, MANY COMPANIES ARE TALKING TO THE FAA. THERE’S A LOT OF INTEREST. WE AREN’T QUITE AS ADVANCED. THEN THE UNITED STATES IS MUCH BIGGER. >> ONE THING YOU WERE TALKING ABOUT EARLIER WAS HOW YOU SEE ALL PARKED CARS AND — THAT’S SORT OF A WASTE AND YOU LOOK UP IN THE SKY AND THERE’S ALL THIS OPPORTUNITY. AREN’T WE GOING TO BE TAKING — IF YOU ARE SUCCESSFUL AND OTHER COMPANIES ARE SUCCESSFUL. AREN’T WE TAKING THE CONGESTION THAT WE HAVE ON THE STREET AND LIFTING IT UP INTO THE SKY >> THAT’S WHERE THE COOL STUFF IS. 1D VERSES 3D. ON 101 YOU HAVE FOUR LANE AND IF YOU WANT EIGHT LANES THAT’S 100 MILLION-DOLLAR EFFORT A MILE OR SOMETHING LIKE THIS IN THE SKY, IF YOU WANT TO ADD 100 VERTICAL LANES, THAT’S A SOFTWARE FIX. YOU RECOMPILE. ON THE GROUND IF TWO CARS APPROACH AN INTERSECTION, ONE HAS TO STOP. CALLED A STOPSIGN OR TRAFFIC LIGHT. IN THE SKY YOU CAN JUST DO THAT. THE — THE VOLUME OF 3D IS SO MUCH BIGGER EVEN IF ALL OF US WERE IN THE SKY ALL THE TIME. NOW ADD TO THIS THE FOLLOWING. WITH HEAVY SIDE, WITH THE HEAVY SIDE PROJECT WE ARE TEN TIMES AS FAST WHICH MEANS YOUR TIME IN THE SKY WOULD BE A TENTH OF WHAT IT IS ON THE GROUND. IF TODAY YOU COULD FIND 90% OF THE CARS AWAY THERE WOULDN’T BE CONGESTION. TO ME, FROM THE MATH PERSPECTIVE THIS IS A VERY SOLVABLE PROBLEM. >> BUT IT’LL CHANGE THE SKYLINES. SAN FRANCISCO WILL LOOK COMPLETELY DIFFERENT THAN IT’S EVER LOOKED BEFORE. >> YEAH AND HOW COOL WOULD THAT BE IF YOU CAN JUST HOP INTO SOMETHING AND FLY OVER TO BERKELEY OR TO THE AIRPORT IN TWO MINUTES INSTEAD OF BEING STUCK IN TRAFFIC WOULDN’T THAT BE COOL WE BELIEVE THE AMERICAN — TYPICAL AMERICAN WORKER COMMUTES FOR 238 HOURS OR SO A YEAR. IF YOU CAN GET THIS TO 23 HOURS WOULDN’T THAT BE COOL GIVE YOU BACK 200 HOURS OF COMMUTE TIME. >> YOU THINK PEOPLE ARE WILLING TO GIVE UP MAYBE HOW THEY SEE THEIR CITIES TODAY FOR — AND THEN REPLACE IT WITH — MAYBE FILLING WITH A LOT OF HEAVY SIDES. >> YEAH. IF THAT COULD GIVE YOU — VEHICLE FOR THE SAME COST OF A CAR THAT GIVES YOU AROUND TEN TIMES AS FAST. YOU CAN LOOK DOWN. IT’S SAFE. WHO WOULD USE IT OKAY. WHO WOULD NOT USE IT ONE. >> I SEE ONE HAND. >> GOOD. WISE MAN. GOOD, MAYBE YOU WALK TO WORK. >> ALL RIGHT. WE ARE OUT OF TIME BUT I HAVE ONE QUESTION FOR YOU. SO YOU ARE OFTEN ON THE CUTTING EDGE OF TECHNOLOGY AND YOU HAVE — YOU HAVE BEEN A PART OF X AND GOOGLE SELF-DRIVING PROJECT AND KITTY HAWK IN FACT HAS BEEN — IS BACKED BY GOOGLE CO FOUNDER LARRY PAIGE. I’M WONDERING, WHEN YOU GET TOGETHER, AND YOU BRAIN STORM, WHAT DO YOU DREAM OF BUILDING OR SOLVING THAT YOU HAVEN’T ALREADY >> SO RIGHT NOW I CAN TELL YOU I’M 100% COMMITTED TO MAKING THE FLYING CAR A REALITY. I THINK IT’S GOING TO BE NOT JUST A MASSIVE BUSINESS BUT A MASSIVE BENEFIT TO SOCIETY TO GET AROUND MUCH FASTER. I HAVE NO PLANS PAST THIS TO BE HONEST. >> TWO YEARS NOW WHEN YOU ARE BACK ON STAGE WE WILL TALK ABOUT FLYING CARS, MAKE WE WILL HAVE ONE. >> ABSOLUTELY. THANK YOU. >> THANK YOU. [APPLAUSE]. . >> AWESOME. >>>MORE MOBILITY FOR THE FOLKS THAT LIKE MOBILITY. ANYONE RIDEN A SCOOT MERIT PAST FEW WEEKS IN ANYONE GOTTEN HURT ON A SCOOT MERIT PAST FEW WEEKS OKAY. RISK ADVERSE BUNCH. WELCOME TO THE STAGE THE FOUNDER CEO OF BYRD, TRAVIS STAND . >> LOCK THAT UP. ALL RIGHT. THAT WAS PRETTY SEAMLESS. >> YEAH. >> LITTLE NERVOUS BACKSTAGE. THEY ARE WERE BUT GOT IT ALL WORKED OUT. THE TITLE OF THIS SESSION IS I SCOOTED IN AND YOU HAVE JUST ANNOUNCED A SERIES D ROUND OF FUNDING AT A — WHAT I HAVE HEARD AT A $2.5 BILLION VALUATION. CO LET BY SEQUOIA ASK A 2.5 BILLION PREMONEY VALUATION. WE ARE PROUD OF THE TEAM. WE ARE PROUD OF THE TEAM. ABOUT 12 MONTHS AGO WE PIVOTED THE COMPANY FROM A GROWTH AT ALL COST COMPANY IN A LOT OF WAYS AND SPENT THE LAST YEAR FOCUSING ON THE UNIT ECONOMICS OF THE BUSINESS. WE ARE PROUD OF TEAM AND THINK THIS ROUND IS REALLY A TESTMENT TO — ALL THAT HARD WORKWORE. IT WASN’T AN EASY TRANSITION. THE WORLD IS CHANGING A TECH INVESTMENT STANDPOINT. WE ARE FORTUNATE TO HAVE RAISED THE ROUND FROM GREAT INVESTORS. >> YOU KNOW ECONOMICS HAS BEEN — A MAJOR ELEMENT OF THE SHARED ELECTRIC SCOOTER INDUSTRY. WHAT — IS UNIT ECONOMY I CANS MEAN TO YOU AND IS — IS BYRD, DOES IT HAVE — POSITIVE ECONOMICS >> YEAH. I KNOW THERE’S A LOT OF DIFFERENT DEFINITIONS OF THAT. I DO THINK THAT ITS TECH COMPANIES HAVE LOOKED AT THE TOP LINE AND REVENUE. I THINK THAT’S WHAT EVERYBODY CAN COMPARE APPLES TO APPLES. IT TENDS TO BE FUZZY AND THERE’S A LOT OF GRAY AREA. WE TRY TO TAKE A PUNITIVE VIEW AND THAT’S FULLY LOADED COST PER RIDE INCLUDING THE DEPRESSION OF THE VEHICLE WHICH IS ONE OF THE BIGGER COSTS FOR US. WE ARE JUST — FOR THE LAST YEAR WE HAVE BEEN LASER FOCUSED ON OPTIMIZING AND BEING POSITIVE ON THE ECONOMIES. WE ARE POSITIVE ON EVERY RIDE NOW ACROSS THE GLOBE AND SO WE ARE VERY EXCITED ABOUT THAT. >> AND SO THAT IS ON EVERY RIDE INCLUDING, INCLUDING THE ONES FROM THE THIRD PARTY SCOOTER PROVIDERS. >> JUST ON THE CUSTOM OR THE ONES YOU HAVE MADE >> ON BYRD WE ARE DIFFERENT AND HE WITH CAN TALK ABOUT THAT BUT IT’S — BASICALLY YOU KNOW OUR WAY TO HELP TAKE THE MISSION TO THE WORLD. WE RECOGNIZE THAT WE DON’T KNOW EVERY CITY AND EVERY PART OF THE WORLD. WE DON’T HAVE THE CAPITOL TO GO TO EVERY CITY. WE HAVE REALLY PARTNERED WITH LOCAL ITS TO TAKE IT INTO A LOT OF THE THESE LOCAL MARKETS AND THE ECONOMICS ARE DIFFERENT. IT LOOKS AND FEELS LIKE A SASS BUSINESS. WE DON’T HAVE THE OUTLAY AND WE ACTUALLY JUST TAKE A REV SHARON EVE RIDE THAT HAPPENS. THEY ARE QUITE GOOD. A LOT OF THE LONGER TAIL CITIES THERE’S NOT A LOT OF COMPETITION. >> AND JULY — YOU HAD TWEETED THAT YOU HAVE POSITIVE ECONOMIES ACROSS ITS CUSTOM SCOOTER MODEL. NOW ARE YOU SAYING THAT — ACROSS ALL OF THE MODELS ARE YOU SEEING POSITIVE ECONOMICS. >> YES. EARLY IN THE SUMMERTIME WE WERE ABOUT 80% OF THE RIDES WERE ON THE CUSTOM DESIGNED SCOOTERS. NOW WE ARE — I THINK ITS LIKE IN THE 99% PLUS RANGE OF ALL RIDES ARE ON THE DESIGN. WE PHASED OTT ALL OF THE OLD RETAIL SCOOTERS WHICH WE ARE EXCITED ABOUT. WE STARTED THE BUSINESS. NOBODY WAS MANUFACTURING RUGGED ELECTRIC SCOOTERS. I — WHEN I FIRST STARTED THE THE COMPANY I CAN’T KNOW ANYONE RIDING THEM. WE WOULD IMPORT THE SCOOTERS, THE RETAIL SCOOTERS FROM OVERSEAS AND THEY WERE GREAT TO PROVE OUTFIT BUT THEY ARE FRAGILE AND THE ECONOMICS BECAME BETTER. >> YEAH. I THINK THAT — A LOT OF PEOPLE HAVE WONDERED JUST — IN REGARDS TO SCOOTERS LIKE — IS VENTURE CAPITOL JUST SUBSIDIZING THE BUSINESS >> I THINK THAT — THAT’S PART OF THE DISCONNECT WE HAVE SEEN IN THE CATEGORY. A LOT OF FOLKS, YOU KNOW LOOK AT — AT THE ECONOMIES OF THE RETAIL SCOOTERS AND WE KNEW THEY WOULDN’T BE GOOD AND THEY WERE NEGATIVE ON THE ECONOMIES. THE OLD RETAIL SCOOTERS LASTED ABOUT THREE MONTHS ON AVERAGE. WE HAVE BEEN HARD AT WORK AT DESIGNS OUR OWN HARDWARE. THE ONE AND THEN THE TWO WHICH IS NOW ROLLING OUT IN LA. THE ONE ARE LASTING ABOUT 15 MOSS ON AVERAGE AND — SO, YOU KNOW — THE DIFFERENCE IN THE ECONOMIES IS FANTASTIC WHEN YOU COME OUT WITH BETTER HARDWARE AND YOU GET BETTER AT OPERATING. SO TODAY WE ARE EXCITED THAT THEY ARE POSITIVE. NOW WE CERTAINLY HAVE A LOT OF WORK TO DO ON OPX AS THE NEXT STEP. WE ARE NOT FULLY LOADED PROFITABLE YET BUT WE ARE AT THE RIDE LEVEL AND THE CITY LEVEL. >> WE TALKED ABOUT THIS BACKSTAGE. WE WORK — AND ALL OF THESE COMPANIES THAT ARE NOW — EITHER LOOKING TO GO PUBLIC AND THEN MAYBE PULLING BACK. EITHER — AND MAYBE THE NEED TO RAISE MORE FUNDING OR NOT RAISE MORE FUNDING AT THIS POINT. >> YEAH. LOOK. I THINK THAT — I THINK IT’S ONE OF THE REASONS I’M GLAD THAT WE ARE — FORTUNATE TO HAVE A BOARD LAST YEAR. A LOT OF SMART ADVISORS THAT SAY NOW IS THE TIME TO SHIFT AND — WE REALLY MADE HA SHIFT EARLY IN THE COMPANY’S LIFE SICKLE. HE HAD BEEN OPERATING 15 MONTHS BY THE 250EU78 WE WENT ALL IN ON GROWTH TO ALL IN ON ECONOMIES. FAST TRANSITION. THAT WAS A DIFFICULT TRANSITION. WE WERE STILL YOUNG AS A COMPANY. YOU KNOW IT WAS — IT WAS ACHIEVABLE. I THINK THE LONGER YOU WAIT TO MAKE THAT TRANSITION THE HARDER IT BECOMES. I THINK YOU ARE SEEING THAT WITH SOME OF THE COMPANIES THAT HAVE STAYED PRIVATE FOR YEARS AND AT THAT POINT IT’S DIFFICULT TO STEER THE SHIP TOWARD PROFIT AND WE WANTED TO START THAT EARLY IN THE LIFE CYCLE. >> DID YOU MAKE THAT SHIFT FROM GROWTH TO FOCUSING ON UNIT ECONOMICS EARLIER THAN YOU THOUGHT >> WE DID MAKE IT EARLIER. I CAME FROM THE RIDE SHARING WORLD AND I SAID THAT WAS A DIFFERENT WORLD. WHICH HAD A LOT OF OUR BOARD MEMBERS WHO WERE SMART FOLK THAT HAVE SEEN A LOT OF DIFFERENT INDUSTRIES SAYING LAST WINTER WE GOT A SHIFT. WE HAVE TO GO ON UNIT ECONOMICS AND WE HAD A FEELING THE WORLD WOULD CHANGE THIS YEAR. WE — IT’S DIFFERENT IN THAT REGARD. I THINK THAT — YOU KNOW BECAUSE OF — BECAUSE THE TECH INVESTMENT COMMUNITY IS CHANGING AND REACTING QUICKLY TO THE PUBLIC MARKETS. I THINK THAT IT’S VERY DIFFICULT IF YOU ARE A GROWTH STAGE COMPANY. A GROWTH AT ALL COSTS COMPANY BURNING HUNDREDS OF MILLIONS OF DOLLARS. IT’LL BE DIFFICULT TO GET FUNDING MOVING FORWARD. WE WENT ALL IN ON THE UNIT ECONOMICS. I THINK IT’LL BE A HEALTHY RESET FOR THE TECH COMMUNITY. >> I’M CURIOUS ABOUT WHAT WERE YOUR CONVERSATIONS FOR THIS MOST RECENT ROUND OF FUNDING >> LOOK. INVESTORS, HAVE SEEN A LOT OF THE PRESS IN THE — IN THE — ON THE CATEGORY AND LOOKED AT SOME OF THE OLD RETAILERS. THEY ARE LIKE THIS IS A DIFFERENT BUSINESS AND THINK FOLKS WERE EXCITED ABOUT THAT. I THINK THAT THE FACT THAT THE UNIT ECONOMICS ARE POSITIVE. FOLKS ARE EXCITED ABOUT — WE ARE NO LONGER THE BIGGEST MICROMOBILITY COMPANY BUT WE ARE THE BEST ON THE UNIT ECONOMICS SIDE. INVESTORS SEEM TO CARE ABOUT THAT WHICH IS GREAT. >> AND HOW DO YOU KNOW THAT YOU ARE BEST ON UNIT ECONOMICS >> IT’S DIFFICULT TO KNOW FOR SURE. MOST INVESTORS ARE RESPECTFUL OF NOT SHARING DATA WITH COMPETITION BUT WE HEAR THAT WE — AS FAR AS THEY CAN TELL THE — THE ONLY PLAYER WITH POSITIVE UNIT ECONOMICS AND SO — THAT’S — YOU KNOW POSITIVE REINFORCEMENT FOR US AND A SIGN WE NEED TO CONTINUE TO FOCUS ON THAT AS A COMPANY. SOMETIMES I’M AN X GROWTH GUY AND SOMETIMES I WANT TO SEE US GROWING ACROSS THE WORLD AND I WANT TO TAKE THE COMPANY ON THE WORLD TO THE MISSION IN POSSIBLE. THE CHALLENGE IS TRYING TO STAY DISCIPLINE AND EDUCATE THE COMPANY ON PROFIT IS MORE IMPORTANT THAN GROWTH. THEY ARE SEEING A LOT OF THE PRESS HEADLINES. >> I WANT TO GET A LITTLE BIT MORE LOCAL. I THINK IT WAS IN JULY, YOU OFFICIALLY GOT SCOOT FOR $25 MILLION OR SO. WAS THAT — THAT’S THE NUMBER >> WE WON’T COMMENT ON THE NUMBER. IT’S A LITTLE OFF. >> HIGHER OR LOWER >> IT’S IN THE BALLPARK. >> IN THE BALLPARK OF 25 MILLION. WHAT — WHAT MADE SCOOT WORTH 25 MILLION GIVE OR TAKE >> I FIRST HAD DINNER WITH MICHAEL THE FOUNDER OF SCOOT LAST SPRING. I RECOGNIZED THAT HE IS — PASSIONATE ABOUT WHAT WE ARE PASSIONATE ABOUT WHICH IS REMOVING CAR FROM THE ROAD AND REDUCING CARBON EMISSIONS AND TRAFFIC. SCOOT AS MANY PEOPLE KNOW WAS THE FIRST ELECTRIC MOPED SHARING COMPANY IN SAN FRANCISCO. IT WAS FIVE, SIX, SEVEN YEARS AGO OR SOMETHING. SO THEY HAVE THE MOST EXPERIENCE DOING THIS. WE HAD A DIFFERENT FARM FACTOR AND A DIFFERENT WAY AND DIFFERENT VEHICLE TYPE. ONE THING WE WERE EXCITED ABOUT WAS THE TEAM WAS ALIGNED WITH HU MISSION AND PASSIONATE AND THEY HAD THE MOST EXPERIENCE. WE THOUGHT THAT WAS SUPER VALUABLE AND WE HAVE INFUSED THAT CULTURE IN AND IT’S MADE US STRONGER. >> AND I REMEMBER CHATTING WITH — WITH MICHAEL KEAT ING. THE C, O OF SCOOT WHEN THEY WERE FIRST GRANTED A PERMIT TO OPERATE HERE IN SAN FRANCISCO. HE MENTIONED THAT SCOOT HAD BEEN LOOKING AT WAYS TO INTEGRATE HELMETS ONTO ITS KICK SCOOTERS. IS THAT SOMETHING THAT — THAT SCOOT IS STILL PURSUING UNDER YOU >> YEAH. WE ARE. WE DO THINK THAT HELMETS MAKE SENSE TO WEAR. IT TURNS OUT ON ELECTRIC SCOOTER AS YOU CAN SEE THERE’S — THERE’S THE FARM FACTOR IS SMALL AND TRYING TO FIGURE OUT THE BEST WAY TO MOUNT A HELMET IS CHALLENGING. YOU CAN MOUNT A HELMET ON, IT’S JUST WHEN WE — IN OUR INDUSTRY WHEN THINGS GET PUT ON THE ROAD THEY TEND TO GET DAMAGED FAST. YOU HAVE TO FIGURE OUT HOW TO MAKE SURE THEY DON’T GET DAMAGED OR STOLEN BUT IT’S STILL AN R AND D PROJECT. ON THE MOPED BUSINESS WE HAVE TWO HELMETS. HAVE YOU RIDEN THEM BEFORE, TWO HELMETS IN THE BACK CARGO BOX. >> AND THEN — OKAY. I THINK THAT LAST WEEK ACTUALLY. WITH IN THE LAST TWO WEEKS THE CITY GRANTED ANOTHER ROUND OF PERMITS FOR ELECTRIC SCOOTER OPERATORS. SCOOT WAS GRANTED ONE. IT IS GREAT FOR YOU. YOU DIDN’T APPLY FOR A SCOOTER. MY THINKING WAS — IF HAD APPLIED BOTH GOT IN THEM THAT’S LIKE TWO OF THE FOUR OPERATORS. I’M WONDERING WHY DIDN’T YOU APPLY FOR A PERMIT >> OUR THINKING WAS — SCOOT HAS A GREAT RELATIONSHIP IN SAN FRANCISCO. A GREAT BRAND IN SAN FRANCISCO. WE FELT LIKE IT MADE SENTENCE JUST TO APPLY WITH THE SCOOT BRAND TO CONTINUE TO OPERATE IN SAN FRANCISCO. WE COULD HAVE APPLIED TWO TIMES BUT WE DIDN’T WANT TO GET GREED Y WITH IT. >> AND LONG TERM WITH — WITH THE ACQUISITION OF SCOOT. IS THE PLAN TO ALWAYS LET IT BE IT’S OWN BRAND OR DO YOU SEE IT MAYBE — DO YOU SEE IT BECOMING ONE BRAND IN THE END OR WHAT’S YOUR VISION FOR THAT >> WE DO WANT THE SCOOT BRAND TO LIVE ON. WE THINK IT’S A STRONG BAND IN PARTICULAR WITH CITIES AND — WE WANTED TO LIVE ON. IT’LL LIVE ON IN SAN FRANCISCO. WE ARE TRYING TO FIGURE OUT IN OTHER CITIES WHAT MAKES THE MOST SENSE FOR THE BRAND. >> AND ABOUT WITH IN THE LAST SIX MONTHS. THERE ARE TALK THAT UBER WAS LOOKING TO BUY THE COMPANY. WAS THAT — WAS THAT TRUE, WERE YOU IN TALKS WITH UBER >> I DON’T THINK UBER — WE WERE NEVER IN SERIOUS TALKS, WE WERE TALKING TO EVERYBODY IN THE INDUSTRY AND WE DO TALK TO COMPETITION FROM TIME TO TIME. THERE WAS NEVER A SERIOUS CONVERSATION TO THOSE REGARDS. THE INDUSTRY STILL SO NEW. FOLKS TRYING TO FIGURE OUT HOW DOES THIS SHAKE OUT OVER THE LONG RUN I THINK THIS IS ONE OF THESE UNIQUE INDUSTRIES WHERE IT LOOKS EASY FROM THE OUTSIDE AND A LOT OF COMPANIES LIKE THIS. ARE YOU LIKE WOW, IT’S COMPLEX. I ALWAYS LIKE TO SAY IT’S EASY TO SHARE A SCOOTER SHARING COMPANY AND LOOSE MONEY. YOU WANT TO MAKE MONEY PER RIDE AND THAT’S THE BIG CHALLENGE. THE NEXT 12 MONTHS WILL BE INTERESTING TO SEE HOW THE INDUSTRY REALLY SHAKES OUT. >> I MEAN DO YOU SEE THE COMPANIA INQUIRING OTHER COMPANIES IN THE SPACE OR MAYBE SELLING TO A LARGER COMPANY >> WE — YOU KNOW SCOOT WE THINK WAS A UNIQUE SITUATION. WE DON’T HAVE PLANS TOA AREA OTHER OPERATORS. FORTUNATELY WE ARE THE HEST AHEAD ON THE VEHICLE SIDE. QUESTION THINK WE HAVE A GOOD TEAM NOW. TAKING THAT TO THE WORLD FOR US IS THE NEXT STEP AND WE DON’T ANTICIPATE ANY OTHER OPERATOR ACQUISITIONS AT THIS TIME. >> YOU TOUCHED ON THIS A LITTLE EARLIER. THE PLATFORM WHICH IS LIKE A FRANCHISE MODEL, IT — I’M WONDERING SO — YOU HAVE THE PLATFORM, YOU HAVE THE SHARED ELECTRIC SCOOTER MODEL. YOU SELL DIRECTLY TO CUSTOMERS AND THEN YOU HAVE THE MONTHLY RENTALS. I’M CURIOUS WHICH OF THOSE BUSINESS MODELS ARE YOU FINDING THE MOST SUCCESS WITH. >> THE SHARING BUSINESS WAS — THE ORIGINAL BUSINESS AS — MOST OF YOU KNOW AND WE THINK THAT WILL CONTINUE TO BE THE CORE BUSINESS FOR US MOVING FORWARD. WE THINK MOST PEOPLE, MOST RIDERS WILL WANT TO RENT BY THE MINUTE AND — WE CONTINUE TO THINK THAT WILL BE THE CORE BUSINESS. THE MISSION IS TO REMOVE CAR FROM THE ROAD. REDUCE PHOTOGRAPH SPECK CARBON EMISSIONS. WE WANT TO BE THERE TO HELP RIDERS HELP RIDER ACROSS THE WORLD TO KICK THE ADDICTION TO CARS. SHARING, RENTING BY THE MONTH, OWNING, WE THINK THAT ALL THINGS FIT NICELY WITH THAT MISSION. >> AND DO YOU — DO YOU THINK THAT YOU WILL KEEP ALL OF THOSE BUSINESSES OR MAYBE LIKE — ARE THESE THINGS THAT YOU IMAGINE THESE POLE MORE LIKE LONG TERM SERVICES AND THEN INITIATIVES >> THEY WILL BELONG TERM INITIATIVES. THEY ARE OFF TO IA GREAT START. IT’S KIND OF INTERESTING TO THINK ABOUT WHEN UBER FIRST STARTED RIDE SHARING. YOU KNOW CAR OWNERSHIP EXISTED FOR ROUGHLY 100 YEARS OR SO. THEN — YOU KNOW REALLY TRYING TO EDUCATE PEOPLE TO DO SHARING INSTEAD OF OWNERSHIP. IT’S A FRESH START. NOT A LOT OF PEOPLE OWNED THEM. WE ANY FOR THAT REASON THE VAST MAJORITY OF FOLKS WILL DO SHARING. SOME PREFER TO OWN AND RENT BY THE MONTH THAT WE SERVE THIS CUSTOMER AS WELL. >> I THINK THERE HAS BEEN THIS — ONGOING CONVERSATION AROUND IS IT GOING TO BE THE SHARED MODEL THAT STICKS AROUND OR IS IT GOING TO BE OWNERSHIP. I THINK BY HAVING YOUR FEET IN BOTH AREAS YOU CAN KIND OF FIGURE THAT OUT FIRSTHAND. >> EXACTLY. IT FITS WITH OUR MISSION. YOU KNOW IT’S GREAT TO OFFER THE DIFFERENT COLORS FOR SALE. WE HAD SOME FUN WITH THE WHITE AND THE ELECTRIC ROSE THAT PEOPLE SEEMED TO LIKE. IT’S — WE THINK IT’S A GREAT BUSINESS FOR US MOVING FORWARD. >> AND YOU HAVE A LOT OF VEHICLES. YOU HAVE — YOU HAVE THE ONE AND THE TWO AND THEN YOU — ANNOUNCED RECENTLY A GO SEATER. IT’S LIKE A — IT’S — LIKE A HYBRID BIKE, MOPED SCOOTER THING. YOU CAN PROBABLY EXPLAIN IT BETTER. >> YEAH. WE CALL IT IS CRUISER AND PART THE REASON IS THAT — IT’S — IT DOES KIND OF FIT IN BETWEEN A FEW DIFFERENT CATEGORIES. REALLY IT COULD BE A MOPED OR BIKE. FOR US, WE — WE WANT TO — WE WANT TO TRY TO HELP REDUCE CAR TRIPS AND — THE SCOOTERS — WAS A GREAT FIRST VEHICLE TOWARD THAT MISSION. MOST SCOOTER RIDES TEND TO BE OWN OR TWO MILES AND THE CRUISE LETTER BE BETWEEN TWO TO FIVE MILE ITS. WE THINK IT’S THE MISSING PIECE IN THE POR TFOLIO. WE EXCITED ABOUT THE CRUISER. >>AND THOSE WOULD ALSO BE SHARED LIKE PART OF THE SHARED MODEL. >> THAT’S RIGHT. >> OKAY. >> THEY WILL BE AVAILABLE BY SHARING. >> I GUESS WHO IS — WHO ARE YOU SEEING AS — AS A CUSTOMER FOR THAT TYPE OF VEHICLE ARE YOU SEEING JUST LIKE REALLY GOOD FRIENDS OR LIKE COUPLES OR — >> LOOK I THINK — WITH THE CRUISER IT’S KIND OF INTERESTING. I THINK THE CASE IF IT’S LONGER DISTANCE TRIP. IF YOU ARE GOING MAYBE FOUR MILES YOU PROBABLY WANT TO USE THE CRUISE ERIN STEAD OF A KICK SCOOTER. THEN JUST WE — YOU KNOW WE HAVE TALKED TO FOLKS THAT MAYBE ARE — A LITTLE OLDER THAT DON’T LIKE USING THE KICK SCOOTERS THAT WOULD PREFER TO USE THE CRUISER IS WHAT WE HEAR. I KNOW I — GOING BETWEEN — ON THE LENGTH OF THE TRIP. >> YEAH. OBVIOUSLY YOU — YOU HAVE RAISED A TON OF MONEY FOR THE COMPANY AND I HAVE HEARD THAT MAYBE YOU HAVE TAKEN SOME MONEY OFF THE TABLE. IS THAT TRUE >> THERE WAS SOME MONEY TAKEN OFF THE TABLE. WE WERE IN A POSITION LAST SUMMER. IT WAS REALLY WEIRD, UNIQUE POSITION WHERE — WE WERE — WE KEPT INCREASING THE SIZE OF THE ROUND OF THE SERIES C AND BEING OVER SUBSCRIBED AND WE GOT TO THE POINT WHERE WE BASICALLY — THE BOARD DIDN’T WANT TO TAKE MORE CAPITOL. SOME STILL WANTED TO INVEST AND — YOU KNOW WE FELT LIKE IT MADE SENTENCE AT THE TIME. IT’S SOMETHING THAT I KNOW A LOT OF FOUNDERS DO OVERTIME. YOU KNOW IT’S — IT WAS A LITTLE BIT OF A UNIQUE SITUATION. WE WERE SO OVER SUBSCRIBED. >> SOME MAY SAY IT MAY SUGGEST IT’S NOT LONG ONTO DIVISION OF THE COMPANY. >> ANYONE KNOWS ME, KNOWS THAT I AM VERY LONG AND SUPER PASSIONATE ABOUT THE MISSION. THE REASON I GET UP EVERY MORNING IS THAT I REALLY BELIEVE WE NEED A WORLD WITH FEWER CARS. THAT’S WHAT GETS ME EXCITED EVERY MORNING TO COME IN TO THE OFFICE. I’M DEFINITELY IN IT FOR THE LONG HAUL AND WE SEE THEM AS A LONG TERM STAND ALONE COMPANY. THAT’S ONE OF THE REASONS WE ARE SO FOCUSED AND THE PATH TO PROFIT IS WE WANT THIS TO BE A STAND ALONE COMPANY. WE DON’T WANT THIS TO BE A QUICK FLICK COMPANY. >> AND WE ARE — ACTUALLY OUT OF TIME BUT ONE LAST THING. JUST WITH THE RECENT INFLUX OF FUNDING WHAT’S THE PLAN FOR THAT OVER THE NEXT YEAR WHAT ARE YOU GOING TO DO WITH THAT FUND SOMETHING. >> ITS GOING TO BE USED TO CONTINUE TO SCALE TO MORE CITIES. YOU KNOW EUROPE IN PARTICULAR IS — WE ARE GOING TO INVEST MORE IN EUROPE BUT CONTINUE TO TAKE BASICALLY THE THREE BUSINESS LINES NOW TO THE WORLD. BECAUSE WE HAVE STRONG UNIT ECONOMICS NOW WE THINK THIS CASH WILL ACTUALLY LAST US QUITE A BIT OF TIME. WE FEEL GOOD. NOBODY KNOWS WHAT WILL HAPPEN AT THE MACRO LEVEL. ARE WE HEADING TO RECESSION I KNOW THAT’S A BIG DEBATE. WE WANT TO MAKE SURE THAT THE COMPANY IS WELL FINANCED FOR THE NEXT FEW YEARS. >> HAVE A SAFETY NET. >> EXACTLY. >> EXACTLY. >> THANK YOU FOR TAKING THE TIME. >> THANK YOU FOR HAVING ME. >> DO YOU WANT TO SCOOT OFF >> I WILL LET YOU DO IT. >> ALL RIGHT. . >> JUST — I DON’T WANT TO HIT YOU. >> PLEASE BE CAREFUL. THERE’S STAIRS OVER THERE. I DON’T KNOW WHAT HER PLAN IS. OKAY. COMING UP NEXT ON THE Q AND A STAGE. — HEAD OF VERIZON VENTURES. GLOBAL AND LEE RADFORD, PROCTOR AND GAMPLE. IF YOU HAVE QUESTIONS FOR THEM IN PARTICULAR, NOW IS THE TIME. HEAD ON OVER. ANYONE IN THE AUDIENCE PLAY VIDEO GAMES COOL. ME TOO. I WILL KICK OUR ASS. OUR NEXT GUEST ALSO PLAYED QUITE A BIT OF VIDEO GAMES AND MADE QUITE A BIT OF MONEY OFF THAT. PLEASE WELCOME, FOUNDER OF SB PROJECT SCOOTER BRAUN AND FOUNDER AND CEO OF 100 THIEVES, MATTHEW HAAG. I WILL BE YOUR MODERATOR. PLEASE WELCOME THEM. THAT’S YOURS. >> HOW YOU DOING >> GOOD. >> THE FUN LITTLE HAND SHAKE. >> I THINK WE DID GREAT. >> IT WAS GREAT. >> RAISE YOUR HAND IF YOU KNOW WHAT 100 THIEVES IS ANYONE FAMILIAR IN THE AUDIENCE PROBABLY WORD FOR YOU. >> THERE’S A FEW THERE. >> IT’LL BE A LOT MORE IN A COUPLE OF YEARS. >> MAYBE BY THE END OF THE AFTERNOON. >> THAT MAKES MORE SENSE. >> YOU KNOW YOU — YOU ARE PROBABLY USED TO GOING TO A LOT OF THESE GAMING CONFERENCES WHERE YOU GET MOBBED. YOU FEEL WEIRD BEING UNNOTICED >> I ABSOLUTELY NOT. I PROMISE I’M NOT THAT FAMOUS. I HAVE MY NICHE COMMUNITY. I ALWAYS ENJOY TALKING ABOUT VIDEO GAMES AND THE BUSINESS WE ARE IN WITH PEOPLE THAT AREN’T AWARE OF PEOPLE HAPPENING IN THE GAMING INDUSTRY. IT’S A GREAT OPPORTUNITY TO INFORM PEOPLE OF THIS EMERGING BUSINESS. >> I HAVE A LOT TO ASK SO I WANTED TO ASK YOU LIKE — YOU INVEST IN 100 THIEVES. WHAT DREW YOU TO THIS BUSINESS >> FIRST I’M HERE FOR EMOTIONAL SUPPORT. I KNOW MOST OF YOUR QUESTIONS ARE FOR MATT. WHAT I WAS DRAWN TO WAS — WE STARTED LOOKING AT THE SPACE AND — REALIZING THAT THE GAMING — THE GAMING WORLD IS — IF YOU TAKE ALL OF MUSIC AND FILM COMBINED, GAMING IS BIGGER. >> SO WE WANTED TO KIND OF LOOK AT THE SPACE AND SEE IF WE COULD GET IN AND WE STARTED LOOKING, DO WE BUY A TEAM, CREATE A LEAGUE. I SAID LET’S JUST SIT BACK AND WATCH. IT’S A YOUTH DRIVEN BUSINESS. WE REALIZED WHEN WE MET MATT HE WAS LOOKING AT IT DIFFERENTLY. HE WASN’T LOOKING AT IT AS PROFESSIONAL TEAM MANY HE WAS LOOKING AT IT AS A BRAND. 100 THIEVES STARTED WAS A CLOTHING BRAND. I LIKE TO BET ON FOUNDERS AND MATT WAS A FROM FESS NAIL GAMER. VERY SUCCESSFUL. TO THEM SOMEONE THAT BELIEVED IN THE SPACE EARLY ON. HE GOES AND TALKS TO PLAYERS. HE WON’T BRAG ABOUT THEMSELVES. SEVEN YEARS AGO THIS GUY WORKED AT McDONALDS AND WAS A FOUR YEAR EMPLOYEE. HE WAS TRYING TO PUT HIMSELF THROUGH SCHOOL. SEVEN YEARS LATER HE WAS AN OWNER AND RUNNING LARGE ORGANIZATION WHERE HE PAYS GAMER WHO WORK IN HIS ORGANIZATION MILLIONS OF DOLLARS YOU SEE SOMEONE WHO HAD THAT KIND OF DRIVE. I MAKE A BET ON THEM. >> THANK YOU SCOOTER. >> YOU WANT TO KNOW SOMETHING THAT’S INTERESTING. YOU WANT TO KNOW HOW MUCH SCOOTER SUPPORTS 100 THIEVES. HE HAS NOT REMOVED HIS HAT SINCE HE BECAME A CO OWNER. I SWEAR TO GOD. EVERY PHOTOGRAPH YOU CANNOT FIND ONE. IF HE HAS A HAT ON ITS 100 THIEVES. >> I THINK — I HAVE THREE AND THEY TRADE AND NOBODY HAS TO SEE HOW MUCH I’M RECREEDING. >> LET’S LAY THE LANDSCAPE FOR THESE PEOPLE HERE. THERE’S CLOTHING, 100 THIEVES BRANDED GEAR. COOL SHIRTS, T-SHIRTS. IT THERE IS E SPORTS. YOU — YOU OWN SEVERAL DIFFERENT TEAMS THAT COMPETE AT THE PROFESSIONAL LEVEL. THEY GET SPONSOR SHIPS. THEY WIN TURNMENTS AND THEN STREAMERS WHO SPEND EIGHT TO 12 HOURS A DAY PUTTING THISSER STUFF UP ON TWITCH AND CREW KNUBLE AND BRINGING THEM MONEY THROUGH THAT MODEL. WHICH GENERATES THE MOST REVENUE >> RIGHT NOW IT’S A COMBINATION BETWEEN STREAMERS WHICH WE WOULD CALL ENTERTAINMENT AND THEN E SPORTS TEAMS. THEY GO ON STAGE. LOGO PLACEMENTS JUST LIKE YOU WOULD SEE IN THE NBA OR NASCAR. JUST LIKE TRADITIONAL SPORTS. OUR BIGGEST REVENUE DRIVERS, PARTNERSHIPS BUT — WE HOPE TO GROW OUR CLOTHING BUSINESS AND HAVE THOSE OPERATING AT THE SAME LEVEL OF WHAT WE WOULD COME TO EXPECT. >> AND — AS SCOOTER SAID YOU ARE FORMER PROGAMER AND PLAYED CALL OF DUTY. THIS YEAR CALL OF DUTY MOVED FROM A PUBLISHER SUPPORTER LEAGUE, ACTIVISION TO A FRANCHISE LEAGUE AND YOU HAD TO MAKE THE SAD ANNOUNCEMENT THAT 100 THIEVES WOULDN’T PARTICIPATE NEXT YEAR SWEU A BUMMER FOR ME. I HAVE LOVED WATCHING YOUR TEAM PLAY IN THE LAST YEAR. >> THANK YOU. >> HOW DO YOU PROTECT YOUR BUSINESS AGAINST E SPORTS IS CHANGING. IT’S GROWING MATURING, THINGS ARE HAPPENING VERY QUICKLY. HOW DO YOU PROTECT YOUR BUSINESS AGAINST THOSE CHANGES, NOT PARTICIPATING IN CALL OF DUTY, IT’S LIKE CALL OF DUTY. >> FOR ME THE GAME WAS ALWAYS CLOSE TO MY CHEST BECAUSE IT’S THE TITLE THAT LET ME HAVE A CAREER. I BUILT MY FOLLOWING. I HAVE MADE ALL THE FRIENDSHIPS I HAVE TO THIS DAY THROUGH THE CALL OF DUTY COMMUNITY SINCE I WAS 16. IT WAS A TOUGH DECISION TO STRAY AWAY FROM SPENDING $25 MILLION ON A FRANCHISE LEAGUE. IT’S NOT THAT WE DON’T BELIEVE IN THE MODEL. WE ARE PART OF LEAGUE OF LEGENDS. WE PAID $10 MILLION TO BE A PART OF THAT LEAGUE. FOR US CALL OF DUTY IS IN A TOUGHER PLACE BECAUSE THE GAME HAS BEEN AROUND FOR A DECADE. VIEWER SHIP ISN’T GROWING THE SAME RATE. IT’S A FRANCHISE THAT HASN’T WITHSTOOD THE TEST OF TIME TO THE EXTENT THAT LEAGUE OF LEGENDS HAS. E SPORTS A LOT OF PEOPLE WOULD CONSIDER IT IN A BUBBLE OR REFER TO IT AS A BUBBLE SOMETIMES. WHAT WE ARE DOING IS GETTING DOWN AND BELIEVING IN THE BRAND THAT WE ARE BUILDING. LIKE SCOOTER SAID IN THAT YOU BROUGHT UP CLOTHING IS REALLY BIG PART OF OUR BUSINESS. WHAT I FOUND IN THE COMPANY AS — AND WE BELIEVE THAT ALL OF THE ENTERTAINMENT MOVES THAT WE ARE MAKING BY SIGNING POPULAR STREAMERS AND CREATING CONTENT ON YOUTUBE. WE WANT THAT TO GROW. WE WANT TO INVEST IN THE RIGHT E SPORTS THAT WE THINK WILL SHOW RETURN IN THE NEAR FUTURE AND LONG TERM AND THEN OUR CLOTHING WILL — LIKE WE SAID WE WANT TO CONTINUE TO GROW. WE JUST HAVE TO BE DISCIPLINED WITH HOW WE SPEND OUR MONEY. A LOT OF MONEY WE CAN’T JUST FLUSH IT DOWN THE DRAIN AND START WILDLY SPENDING JUST BECAUSE E SPORTS IS — USED AS A BUZZ WORD. JUST BECAUSE — THEY THINK THIS IS WHAT WE NEED TO DO. THAT’S NOT GOING TO DEFINE OUR SUCCESS. WE WANT TO SPEND CAREFULLY. >> WHY NOT JUST WRITE THEM A CHECK 25 MILLION. >> I DON’T KNOW HOW TO RESPOND TO THAT. LOOK. I THINK THE REASON WHAT MATT IS SAYING CORRECT AND THE REASON I WOULDN’T WRITE A CHECK IS I DON’T WANT TO BE FRIVOLOUS. WE WANT TO MAKE A PLAN AS TO WHERE E SPORTS AND GAMING IS GOING. WE DON’T WANT TO GET CAUGHT OUT IN THE NEXT TWO YEARS AND SAY WE ARE OUT OF MONEY MANY WE ARE WELL FUNDED. WE ARE MAKING THE RIGHT DECISIONS. WE ARE HEADING TOWARD PROFITABLE. THAT’S A VERY TOUGH DECISION. CALL OF DUTY IS SO IMPORTANT WITH HIM AND HE IS SO CLOSE TO THESE GUYS AND THEY WON TWO MAJOR CHAMPIONSHIPS. WHAT I’M EXCITED ABOUT IS HE BUILT THE BRAND TO A PLACE WHERE I THINK A LOT OF THESE GUY ALSO GO TO DIFFERENT TEAMS AND YOU WILL SEE THEM WEARING THE BRAND 100 THIEVES. BECAUSE THAT’S THE MOST IMPORTANT THING TO US, TO BUILD A BRAND THAT WHEN THIS THING IS — GETS FLUSHED OUT, WE SEE WHERE E SPORTS AND GAMING, 100 THIEVES WILL STAND THERE AS THE CHOICE BRAND FOR GAMERS. >>AND LIKE — MY TWO CENTS FOR WHATEVER IT’S WORTH IS 100 THIEVES HAS GOT TONE THE POINT IN THE SHORT TIME ITS BEEN AROUND THAT CALL OF DUTY ISN’T INTO GRAM TO INTEGRAL TO THE BRAND BEING POPULAR. TIFU WAS FEELING LIKE HIS CONTRACT WAS UNFAIR. WHAT DOES YOUR CONTRACT WITH YOUR PROPLAYERS LOOK LIKE >> THEY ARE VERY DIFFERENT DEPENDING ON THE GAME. OUR FORTNITE PLAYERS. WE PAY THEM TENS OF THOUSANDS OF DOLLARS AND WE TAKE A PERCENTAGE AND WE NEGLIGENT ATE WITH OUR AGENTS AND MAKE SURE THAT THEY ARE COMFORTABLE WITH THE DECISION THEY ARE MAKING. OUR FORTNITE PLAYERS UNDER 18 SO WE TALK TO THEIR PARENTS, WE EXPLAIN TO THEM WHAT THIS CONTRACT MEANS AND GO THROUGH IT LINE BY LINE SO THEY UNDERSTAND THE DECISION THEY ARE MAKING. WE ADVISE THEM TO BRING ON AN AGENT IF THEY DON’T HAVE ONE AND HELP THEM NAVIGATE THIS SPACE. I THINK FOR ME WHAT’S BEEN IMPORTANT IS I WAS IN THEIR SHOES — WHEN I WAS 16 YEARS OLD, AND CONTRACTS AND THE STAKES WEREN’T AS HIGH AS THEY ARE NOW IN TERMS OF THE OPPORTUNITY THAT THEY HAVE TO EARN IN THE FUTURE. SO, THERE HAS NEVER BEEN A TIME IN MY LIFE WHERE I JUST WANT TO PROTECT MORE THAN I EVER HAVE NOW. I WAS THERE. I WASN’T MAKING MONEY. THERE WASN’T A BEATEN PATH FOR ME TO GO DOWN TO TRY TO FIGURE OUT WHAT IS THE NEXT BEST DECISION FOR ME I’M REALLY CLOSE WITH OUR PLAYERS AND THAT’S PROBABLY WHAT I LOVE ABOUT MY JOB THE MOST. BEING ABLE TO HELP THEM BUILD A CAREER SO THEY CAN EARN MONEY FOR THE RESTS OF THEIR LIVES DOING SOMETHING THEY ARE IN THE TOP .01% AT IN THE WORLD. I WOULDN’T GET TOO DEEP IN TO THE CONTRACTS BUT WE PAY OUR PLAYERS WELL. AS THEY CONTINUE TO GROW AND PREFORM WE ARE ALWAYS OPEN TO RETHING ATING AND THAT’S SOMETHING THAT’S BEEN VERY IMPORTANT TO ME. >> I KNOW THERE’S BEEN A HUGE DEBATE ABOUT IF IT’S FAIR TO TAKE WINNINGS INSTEAD OF SLICES OF ENDORSEMENT DEALS BECAUSE WITH THOSE — IN A LOT OF WAYS YOU BRING THAT TO THE TABLE, RIGHT YOU ARE THE BROKER OF THAT WHEREAS WINNINGS IS — THEY ARE THE ONES GOING OUT AND PLAYING WINNING THE MILLION DOLLARS OR WHATEVER IT MAY BE. >> YEAH. ABSOLUTELY. I MEAN THAT’S SOMETHING THAT WE CONTINUE TO LOOK AT. ITS BEEN AN INDUSTRY STANDARD FOR A LONG TIME IT. WAS THE CASE WHEN I WAS A PLAYER. AS THE STAKES GET HIGHER, IT’S SOMETHING THAT WE ALWAYS TALK ABOUT INSIDE THE OFFICE INEVERY SINGLE DAY. I DON’T THINK THERE’S A RIGHT ANSWER TO THAT QUESTION RIGHT NOW. THERE’S NO WORLD WHERE WE ARE LOOKING TO TAKE ADVANTAGE IN — EVEN LIKE PRIZE EARNINGS UP INTO THIS POINT I THINK THIS TOPIC HAS ONLY COME UP BECAUSE THE WORLD CUP. THEY ANNOUNCED 100 MILLION- DOLLAR PRIZE POOL. BEFORE, PRIZE MONEY NEVER MOVED THE NEEDLE FOR PLAYERS OR ORGANIZATIONS. IT’S NOT EVEN IN THE CONVERSATION OF WHAT DRIVES REVENUE FOR A TEAM. SO, IT’S ADAPTING AND SOMETHING WE HAVE TO CONTINUE TO TALK ABOUT. WE WANT OUR PLAYERS TO BE JUST AS EXCITED CONTRIBUTING INTO THEIR PERSONAL BRAND AND HELPING THEM GROW WHERE NOBODY IS BEING TAKEN ADVANTAGE OF. >> LET’S TALK ABOUT THE ENTERTAINMENT SIDE OF THE BUSINESS. THESE PLAYERS, OFTEN TIMES — EVEN IF — THEY STILL SEE A HUGE LIFT. THEY GET SIGNED TO 100 THIEVES AND YOU GO FROM A HUGE 20,000, 30,000 TO A MILLION OR TO 10 MILLION. THEY SEE THOSE BIG JUMPS. WHEN I GET SIGNED ONTO WORK FOR MY COMPANY I HAVE TO GO THROUGH STANDARDS OF BUSINESS CONDUCT TRAINING TO LEARN HOW TO BE A GOOD REPRESENTATIVE FOR MY ORGANIZATION. WHAT KIND OF TRAINING DO YOUR PLAYERS GO THROUGH TO PREPARE THEM TO BE IN FRONT PEOPLE AND NOT SMEAR THE 100 100 THIEVES NAME >> WE HAVEN’T DONE MEDIA TRAINING UP UNTIL THIS POINT. I DID WHEN I SIGNED UP WITH RED BULL IN 2012 OR 2013. REALLY WHAT WE DO IS WE ARE CAREFUL IN THE WAY THAT WE RECRUIT PLAYERS. I THINK THAT — 100 THIEVES HAS TAKEN A VERY DIFFERENT APPROACH WHEN COMES TO ENTERTAINMENT IN E SPORTS WHERE NORMALLY TEAMS WOULD OPERATE LIKE THE YANKEES, THEY WOULD TRY TO SIGN THE BEST PLAYERS AND HOPEFULLY THEY WIN AND THAT’S THEIR FAN ACQUISITION STRATEGY. WE HAVE A COMBINATION OF PROFESSIONAL PLAYERS AND WE TRY TO HELP THEM GROW THERE ARE LIVE STREAMS OR JUST LIKE THEIR ENTERTAINMENT FOOT PRINT WHETHER IT’S ON YOUTUBE OR ANY OTHER MEDIA OUTLET THEY WANT TO BE A PART OF OR CONTRIBUTE TO AND WE HAVE CONTENT CREATE EARS THAT THEIR ENTIRE JOB IS ENTERTAINMENT THROUGH VIDEO GAMES. WE HAVEN’T RAN INTO SITUATIONS WHERE PLAYERS JUST POP OFF AND SAY SOMETHING THAT WOULD CAUSE PROBLEMS BECAUSE I FEEL LIKE WE HAVE GOOD KIDS THAT PLAY FOR US. OBVIOUSLY THAT IS NOT — A GREAT ANSWER OR GREAT SOLUTION. I REALLY TRUST IN THE PLAYER THAT WE HAVE SIGNED AND — WE MAKE SURE TO TALK TO THEM VERY STERNLY ABOUT HOW THEY SHOULD REPRESENT 100 THIEVES AND I THINK THEY HAVE A GOOD HANDLE ON IT. AS THE INDUSTRY GROWS AND — GAMING IS MORE FROMMENT IN HOW MANY ARE WATCHING OR WHERE ITS BEING SHARED I THINK MEDIA TRAINING CAN BE AND IS A NECESSARY STAND AFTER OF OPERATIONS THAT WE PROBABLY SHOULD ENACT IN TO THE COMPANY. >> AND YOU HAVE GUIDELINES LIKE WE DON’T USE THOSE WORDS >> YES. ABSOLUTELY. THERE IS A — A BANNED LIST OF WORDS THAT WE ACTUALLY JUST BROUGHT ON — A TEAM CALLED THE MOB. THEY STARTED AS SOCIAL MEDIA STAR THAT WOULD JUST TWEET FUNNY, FUNNY MEMES. I’M SURE A LOT OF PEOPLE HERE IN TECH — HOPEFULLY ARE FAMILIAR WITH MEMES. THAT’S HOW THEY GOT START WAS INTERACTING THE BIGGEST GAMING PERSONALITIES IN THE WORLD AND MAKING THEM LAUGH. THERE WAS CHOICE CONTENT THEY WOULD UP LOAD THAT WAS A LITTLE DICEY. WHEN WE BROUGHT THEM ON AND PUT THEM IN IA HOUSE WE SAID WE HAVE TO HAVE A CONVERSATION . IT’S CHANGING BUT — WE ARE BRAND SAFE. WITH THE PARTNERSHIPS WE HAVE, THERE’S TOO MUCH ON THE LINE. >> CAN’T RISK IT. TO RISK WHAT WE HAVE BUILT. THAT’S THE MOST IMPORTANT THING TO ME. >> THAT’S KIND OF SOMETHING THAT’S — REALLY CLOSE TO ME ACTUALLY. I PLAY A LOT OF VIDEO GAMES. AS A GIRL, WOMAN, WHATEVER, IT’S — TERRIFYING. IT’S REALLY NOT FUN TO PLAY SLID YES GAMES AS A GIRL. THE THINGS THAT PEOPLE SAY TO YOU ARE JUST JARRING. IT’S WAY WORSE THAN ANYTHING I HAVE EVER EXPERIENCED ON ANY OTHER PART OF THE INTERNET. I GUESS I’M JUST CURIOUS LIKE — YOU KNOW — THERE MAY NOT BE TRAINING THERE IS CLEARLY GUIDELINES BUT — ARE YOU REMINDING THESE PLAYERS THAT THEY ARE ROLE MODELS FOR THE NEXT GENERATION OF YOUNG MEN AND HOW THEY WILL TREAT WOMEN AND EVERYBODY AROUND THEM >> ABSOLUTELY. WHAT HE WITH HAVE DONE FROM A CULTURE STANDPOINT WITH 100 THIEVES IS — ANOTHER THING THAT’S ONE OF MY TOP PRIORITIES IS — REALLY TEACHING THE GAMING AUDIENCE HOW TO BE A NORMAL, CONTRIBUTOR TO SOCIETY. GAMER THAT ARE YOUNGER ARE REMINDED OF HOW YOU ARE SUPPOSED TO ACT. . >> WHEN WE MET HE WAS RECRUITING ONE OF THE BEST PLAYERS THE WORLD AT A CERTAIN GAME AND THAT PLAYER CAME OUT OF NOWHERE WHERE THE PLAYER HAD SAID CHOICE WORDS. WITHOUT EVEN BATTING AN EYE OR TALKING TO HIS BOARD HE HOLDS HIMSELF TO A HIGH MORAL STANDARD AND CONSIDERS HUNDRED THIEVES HIS BABY. HE — HE STOPPED RECRUITING THE PLAYER, SHUT DOWN THE DEAL. HE HAD IT, IT WAS DONE. THE PLAYER WAS GOING TO COME PLAY FOR THE ORGANIZATION AND HE SAID I DON’T WANT SOMETHING LIKE THAT REPRESENTING THIS BRAND. WE CAN’T SPEAK FOR THE REST OF GAMING BUT WITH MATT AT THE HELM AND THE STANDARD HE HAS HE SAID IT BEST THE IT’S ABOUT THE CULTURE AND THE PEOPLE YOU BRING IN. IT’S ABOUT NOT ONLY SETTING UP — YOU KNOW — WHAT WORKS. THEY SAY THEIR ROLE MODELS AND WHO HE IS PUTTING ON THE PLATFORM. THE NUMBER ONE MOST WATCHED FEMALE ON TWITCH IN THE WORLD. >> SHE IS THE BEST. >> SHE IS ONE OF OUR ENTERTAINERS. SHE IS A PART OF OUR STREAMING; OUR POD CASTS AND IS SUCH A ROLE MOOD EL FOR ALL OF THESE YOUNG GIRLS IN THE SPACE AND SHE IS AT THE HIGHEST LEVEL OF THE PLATFORM BECAUSE HE SAID I WANT GIRLS TO SEE HER AND KNOW THEY CAN BE LIKE HER. WITH SOMEONE AT THE FOREFRONT YOU WILL SEE A SHIFT FROM YOUR EXPERIENCE EARLY ON. >> YEAH. >> THAT’S THE HOPE. >> I SURE DO HOPE SO. IT — THE ESA SAYS 46% OF GAMERS WOMEN. 25% OF THE PROGAMING AUDIENCE IS WOMEN AND YET WE SEE AT THE WORLD CUP THERE’S NO WOMEN MA COMPETING. THERE’SING IN PHYSICAL THAT SEPARATES A BOY AND A GIRL PLAYING A GAME. THERE’S A CULTURE THAT SEPARATES AND KEEPS THE WOMEN AWAY. THAT SCARES THEM FROM WANTING TO PLAY AND BE A PART OF IT. WHAT IS THE BREAK DOWN, MEN TO WOMEN AT HUNDRED THIEVES >> I WOULD SAY WE ARE ONE OF THE LEADERS IN E SPORTS. I DON’T KNOW THE EXACT STATS. ITS BEEN VERY IMPORTANT FROM THE GROUND UP THAT WE HAVE DIVERSITY IN THE WORKPLACE. I THINK THAT WE ACTUALLY HAVE HIRED THE MOST WOMEN OUT OF ANY E PORTS ORGANIZATION. WE THREW OUR FIRST PUBLIC PARTLY AT TWITCH CON. ONE OF THE SCOOTERS’S ENTERTAINER, LITTLE DICKE EY. >> HE PREFORMED AT THE PARTY. FROM DAY ONE SHE IS OUR SENIOR MARKETING MANAGER. SHE WAS PROBABLY OUR 5th EMPLOYEE AT HUNDRED THIEVES. SHE THREW THE BEST PARTY WE HAVE SEEN. SHE DID IT FROM DAY ONE TO THE DAY OF THE PARTY. THREE MONTHS OF WORK WITHOUT ANY HELP AND SHE IS JUST LIKE A SHINING EXAMPLE OF NOT BECAUSE OF GENDER BECAUSE OF TALENT. TALENT IS TALENT. WE — WE HAVE SEARCHED THROUGHOUT THE ENTIRE INDUSTRY TO FIND PEOPLE LIKE JULIA AND WE ARE RECRUITING BETTER AND BETTER EMPLOYEES REGARDLESS OF WHERE THEY COME FROM. SO, IT’S SOMETHING THAT IS VERY IMPORTANT AND WE ARE TRYING TO SET THE STANDARD AND REALLY PUSH THE INDUSTRY TO DIVERSITY AND NOT DISCRIMINATE BECAUSE OF WHATEVER REASON. >> AND ONE THING IS YOU ARE AT THE MERCY OF THESE STREAMING PLATFORMS THAT COULD CHANGE THE RULES AND THAT MAY MAKE A DIFFERENCE. YOU SAID SOMETHING INTEREST WHICH IS A TWO WAY STREET. YOU CAN’T HAVE A HIGHWAY WITHOUT THE CARS IS WHAT YOU SAID. WHEN A BIG STREAMER MOVES LIKE THAT. LIKE NIN J.A. IS A GREAT EXAMPLE. DID HE MAKE THE RIGHT DECISION >> HE MADE A GREAT DECISION FOR HIMSELF. >> SURE HE MADE A LOT OF MONEY. I HAS GONE PAST WHAT IT MEANS TO BE A PROFESSIONAL GAMER. I TALKED ABOUT THIS IN A VIDEO I RECORDED YESTERDAY. BECAUSE WE RECEIVED HIS COOPERATION AND I UNBOXED IT AND JUST TO — JUST TO LOOK AT WHERE HE STARTED BACK IN THE DAY WHEN I WAS COMING UP ON HALO TO FAST FORWARD LIKE SEVEN, EIGHT, NINE, TEN YEARS LATER, TO BE LIKE THE BIGGEST NAME IN TWITCH AND GOING ON JIMMY FALLEN AND WRITING BOOKS AND DOING ALL THIS CHARITY WORK. SCOOTER — NIN J.A. IS JUST A FANTASTIC EXAMPLE OF WHAT HARD WORK WITH BREED IF YOU KEEP YOUR HEAD DOWN AND DO WHAT YOU BELIEVE IN AND BE PASSIONATE ABOUT WHAT YOU ARE WORKING ON. SO, I THINK THAT HE MADE A GREAT DECISION FOR HIMSELF AND HIS FAMILY. NOW WILL THAT WITH STAND THE TEST OF TIME WILL VIEWER SHIP TRANSFER I DON’T KNOW THE ANSWER TO THAT. I THINK STREAMING IS IN A MUCH DIFFERENT PLACE THAN WHEN I WAS IN HIS SHOES. I’M HAPPY FOR HIM AND I THINK THAT — STREAMING AND JUST ENTERTAINMENT, WE DON’T WANT MONOPOLIES. WE WANT COMPANY THAT ARE EMPOWERING THE COMMUNITY THAT IS GOING TOWARD THEIR WEBSITE AND I THINK IT’S IMPORTANT THAT TWITCH AND MIKER HAVE HAVE A VARIETY OF TALENT. >> THE OTHER SIDE OF THAT. I’M SURE ARE YOU FAMILIAR WITH NICK — HE WAS ON HUNDRED THIEVES FOR A LONG TIME MANY HE SIGNED WITH TWITCH AND HE LEFT HUNDRED THIEVES AND SIGNED FACE CLAN AND THE RUMOR WAS THAT HE WAS PROMISED 5% OF HUNDRED THIEVES. YOU ARE AT $160 MILLION VALUATION SO THAT’S A PRETTY PENNY. IS THAT WHAT HAPPENED >> IT’S A VERY DELICATE SITUATION THAT I PROMISE YOU THAT I CANNOT EXPLAIN AT THIS TIME. >> THAT’S FINE. >> I RESPECT NICK. >> I WILL DO THIS FOR YOU. — I HAVE HAD PEOPLE DEFEND ME IN THE PAST AND STUFF. MATT NEVER BROKE HIS WORD ON ANYTHING THAT HE DID. I THINK SOMETIMES PEOPLE USE THEIR PLATFORM IN THIS WORLD TO SAY WHAT THEY WANT TO SAY AS LONG AS THEY HAVE AN AUDIENCE TO SAY IT TOO. THINGS AREN’T ALWAYS BASED ON FACT. HE HAD A RIGHT TO COME OUT AND TELL THE TRUTH AND HE DECIDED TO TAKE THE HIGH ROAD WHICH HE WILL CONTINUE TO DO ON THIS STAGE AND MORE SHOULD TAKE THAT APPROACH. HE DOESN’T NEED — I WILL STEP UP AND SAY YOU DON’T NEED TO DEFEND YOURSELF. I APPRECIATE THE QUESTION, BUT YOU DON’T HAVE TO DEFEND YOURSELF FOR SOMETHING YOU DIDN’T DO ANYTHING WRONG. NICK IS A GOOD GUY AND SHOULD HAVE A GOOD CAREER BUT SOME OF THE THINGS SAID IN PUBLIC THAT MATT NEVER RESPONDED TO I WAS PROUD. HE DID THE RIGHT THING AND LET THE ORGANIZATION SPEAK FOR ITSELF. WE ARE STARTING — ONE THING I GET T FRUSTRATED ABOUT IS WE ARE IN A SOCIETY WHERE PEOPLE CAN SAY ANYTHING THEY WANT, INCLUDING OUR PRESIDENT AS LONG AS THEY HAVE AN AUDIENCE AND WE NEED TO GET BACK TO A PLACE WHERE WE HOLD PEOPLE RESPONSIBLE FOR WHAT THEY ARE SAYING — YOU DON’T HAVE TO DEFEND YOURSELF. ARE YOU A GOOD GUY AND RUN A GREAT ORGANIZATION. THAT ONE THING HAPPENED AND I THINK THE WAY HE HANDLED HIMSELF BY STAYING QUIET, WISHING NICK THE BEST OF LUCK WAS A TESTMENT TO THE TYPE OF LEADER YOU WANT IN AN ORGANIZATION. >> YEAH AND I — I APPRECIATE THAT VERY MUCH. [APPLAUSE]. I HAVE A TON OF RESPECT FOR NICK AND WHAT HE HAS DONE FOR HIS CAREER. I HAVE KNOWN HIM FOR A LONG TIME. WE COME FROM SIMILAR PLACES. HE HAS BEEN WORKING VERY HARD. JUST ABOUT AS LONG AS ME TO TRY TO BUILD A CAREER THAT HE IS SUSTAIN A FAMILY AND BUILD SOMETHING THAT HE — HE CAN TRULY BELIEVE IN. I WISH HIM THE BEST. I THINK HE WILL GO ON AND DO GREAT THINGS. HE JUST SIGNED A TWITCH CONTRACT. NICK IS DOING REALLY WELL AND I HOPE HE CONTINUES TO DO WELL. >> SEE, HIGH ROAD,. >> YOU WERE RIGHT, SCOOTER. >> I HAVE TWO QUICK ONES. ITHACA HOLDINGS. YOU CAN TELL US. THEY ARE A LOT OF FOUNDERS WHO ARE LOOKING FOR CHECKS. WHAT IS YOUR INVESTMENT STRATEGY WHAT ARE YOU LOOKING FOR >> IT’S FUNNY BECAUSE I THINK PEOPLE — JUST RECENTLY FOUND OUT I MAKE INVESTMENTS. >> HE MAKES INVESTMENTS. >> YEAH. THEN YOU GET PHONE CALLS. NO, I SAY LOOK — I THINK — WHAT I LOOK FOR PERSONALLY IS YOU ALWAYS WANT A GREAT IDEA. I ALSO WITH OUR TEAM WE LOOK FOR GREAT FOUNDERS. GREAT FOUNDERS WILL PIVOT AND — I THINK YOU WILL SEE PROFIT AND — BUILD A BUSINESS. I THINK THAT IT’S IMPORTANT WHEN YOU MAKE THE INVESTMENT YOU HAVE A BURN THE SHIPS MENTALITY. THEY USED TO ARRIVE ON THE SHORES OF THEIR ENEMY, AND SAY BURN THE SHIPS, THE ONLY WAY YOU GO HOME IS IN THE SHIPS OF YOUR ENEMY, THERE’S NO RETREAT. A GOOD FOUNDER FINDS A WAY TO BOYFRIEND THE AND MOVE INTO A PLACE WHERE THEY CAN BUILD A REAL BUSINESS REGARDLESS OF THE BUMPS IN THE ROAD. THAT’S WHAT I SAW MATT. THAT’S WHAT I SAW — WITH THE GUYS AT DISCORD AND — IN AT LEAST IN THIS SPACE. I HAVE SEEN IT BEFORE AND BEEN FORTUNATE TO BE A PART OF REALLY GOOD ONES AND SOME THAT I WILL BET ON THE FOUNDER THE NEXT TIME. IT DIDN’T WORK OUT. >> YOU WANT TO FOCUS IN ON E SPORTS AS A WAY TO BUILD THAT NETWORK EFFECT OF WE HAVE 100 THAEFRS. WE HAVE THESE AND KIND OF — TIE THINGS TOGETHER >> I TRUST THEM AND THE EXPERIENCE AT THIS SPACE. FOR ME WHEN I LOOK AT EVERYTHING ELSE, I THINK I HAVE THREE KIDS UNDER FIVE RIGHT NOW. I GOT TO FOCUS ON THAT AND — I HAVE MADE MY BETS AND I HAVE A BUSINESS TO RUN MYSELF. AND RIGHT NOW I HAVE — I HAVE TO WORRY ABOUT DIAPERS. >> OKAY. >> SCOOTER IS BEING HUMBLE. IS HE VERY GOOD AT BRINGING COMPANIES TO PROFIT. WE WANT TO WORK WITH HAD HIM AT HUNDRED THIEVES. >> WE IS NOT –>>THERE IS ON THERE’S A LOT OF PEOPLE THAT I LOVE, IF NOTHING MATTERED, IT WOULD BE A TIE BETWEEN TIM THE PET MEN AND DOCTOR DISRESPECT FOR>>PHENOMENAL ENTERTAINERS, THEY HAVE PHENOMENAL BUSINESSES, AND THEY DON’T INTERSECT SOMETIMES, FRIENDS OF THE TEAM, REPRESENTING THE ORGANIZATION, AND THEY ARE FANTASTIC. THOSE ARE 2 OF MY FAVORITES. A BIG ROUND OF APPLAUSE. YOU’RE NOT GOING TO WANT TO LEAVE. I’VE BEEN TALKING ABOUT GAME OF THRONES ALL MORNING. >>>OUR NEXT GUEST IS MAISIE WILLIAMS.>>YES. HELLO.>>MAISIE.>>THANK YOU FOR HAVING ME.>>THANK YOU FOR COMING.>>THIS IS LOVELY APPEAR. — UP HERE. >>GAME OF THRONES OBVIOUSLY, SHE DEFEATED EVIL, WE ALL LOVE HER, BUT ALSO A VERY TALENTED ENTREPRENEUR, SHE STARTED A COMPANY CALLED DAISY, WHERE DID THAT COME FROM, WHY? >>I HAVE A COFOUNDER, DOM, WAS BACKSTAGE, WE WORKED TOGETHER ON THE MOVIE, AND HE CAME TO ME ONE DAY AND SAID THAT THERE IS A HUGE PROBLEM WITH BREAKING INTO CREATIVE INDUSTRIES. THE SERIES OF EVENTS WHO GOT ME TO WHERE I AM NOW, WERE MAINLY BASED ON LUCK AND TIMING, AND DIFFICULT TO RE-CREATE, WE SPOKE ABOUT THE PROBLEMS, HOW PEOPLE REALLY STRUGGLE WITH CONNECTIVITY, AND HAVE TROUBLE FINDING SOMEONE WHO COULDN’T — THEY CAN COLLABORATE WITH, EVEN AT A SIMPLE LEVEL, THE IDEA OF DAISY, WE WANTED TO CREATE A SOCIAL NETWORK, BUT IT WAS MORE FOCUSED ON THE CREATIVE INDUSTRIES, AND FOCUSED ON YOUR WORK, RATHER THAN YOUR PRIVATE LIFE.>>YOU FUND RAISED A LITTLE BIT ALREADY, YORTY RAISED IT, I WAS TALKING BEFORE, THERE ARE A LOT OF SIMILARITIES. I HAVE TO TRY REALLY HARD NOT TO RECYCLE QUESTIONS. LOTS OF CORRELATING THINGS, BUT ONE OF THE THINGS THAT I WAS TALKING TO HIM ABOUT, IT WOULD BE INTERESTING TO HEAR FROM YOU, FUNDRAISING, I’M SURE IT IS EASY TO GET YOUR FOOT IN THE DOOR, BUT MAYBE THINGS GET A LITTLE BIT MORE DIFFICULT FOR YOU ONCE YOU ARE IN THE ROOM? WHAT WAS THAT LIKE? >>DEFINITELY, JUST BECAUSE SOME THINGS, SUBLIMITY — OUR CELEBRITY INDOORS, DOESN’T MEAN IT’S GOOD. [ LAUGHTER ] THERE IS NO PROBLEM REACHING OUT TO PEOPLE ON LINKEDIN, TWITTER, AND GETTING IN THE ROOM WITH THESE AMAZING VCS, BUT YOU HAVE TO PITCH THEM, THEY ARE NOT JUST GOING TO GIVE IT TO YOU, YOU HAVE TO CONVINCE THEM. THEY HAD A LOT OF REALLY AMAZING ADVICE AS WELL, THINGS THAT WERE KIND THINGS THAT DON’T, AND THE REASONS WHY, THEY HAD A LOT OF ADVICE FOR ME AS WELL, GOING THROUGH THIS, HOW TO MANAGE THIS INSANE PLATFORM THAT I HAVE, BUT HOW TO MAKE A REALLY GOOD PRODUCT. GETTING IN THE ROOM IS FINE, BUT YES, CONVINCING THEM IS LIKE CONVINCING SOMEONE TO HAVE A ROLE, IN AN AUDITION. >>YOU HAVE ESSENTIALLY GROWN UP BEFORE OUR EYES AND LIVED UNDER IMMENSE SCRUTINY. DO YOU THINK THAT GAVE YOU THE SKILL SET TO GO AND CONFIDENTLY AND PITCH, OR IS IT A COMPLETELY DIFFERENT SET OF SKILLS? >>NO, I THINK HAVING DETERMINATION TO CREATE A CAREER WITHIN THE CREATIVE ARTS, IT TAKES A LOT OF SELF BELIEF, AND I THINK FOUNDING A COMPANY IS THE SAME, A LOT OF PEOPLE LOOK AT YOU LIKE YOU’RE CRAZY YOU ARE PITCHING THEM THE GREATEST IDEA EVER, AND PEOPLE SOMETIMES DON’T GET IT, IT IS NOT FOR THEM, IN THOSE MOMENTS YOU DO NEED A LOT OF SELF BELIEF, BECAUSE OTHERWISE YOU KIND OF STOP BEFORE YOU HAVE STARTED.>> RIGHT. SO DAISY CONNECTS ARTISTS AND CREATORS YOU WANT TO COLLABORATE AND WORK TOGETHER, AND THEN THEY’VE GOT THIS THING THAT THEY BUILT AND WORKED ON TOGETHER, WHAT HAPPENS NEXT? CAN DAISY SUCCEED WITHOUT SKILLED DISTRIBUTION OR BROKERAGE FOR THOSE DEALS, SPONSORSHIPS, WHATEVER IT MIGHT BE?>>YES, IT’S ACTUALLY WHERE THE COMPANY IS SORT OF HEADING RIGHT NOW, WE WANT TO WORK ON PARTNERSHIPS WHERE OUR USERS CAN HAVE A REAL BRIEF FROM A REAL CLIENT, AND PITCH THEIR IDEAS, AND HAVE A BUDGET, AND BE PAID FOR THEIR WORK, ULTIMATELY ONE OF THE MOST DIFFICULT THINGS IN CREATIVE INDUSTRIES, GET PAID FOR WHAT YOU ARE DOING, AT THE MOMENT, A REALLY WONDERFUL COMMUNITY THAT IS THRIVING AND CREATING AMAZING PROJECTS, IN TERMS OF TRANSFERRING THAT INTO THE REAL WORLD, AND HOW PEOPLE ACTUALLY GET JOBS, THESE PARTNERSHIPS ARE GOING TO BE REALLY GREAT FOR THAT. >>YOU CHOSE NOT TO PUT ANY FOLLOWER ACCOUNTS ON DAISY, I’M TRYING NOT TO SAY MAISIE, AND ARIA. [ LAUGHTER ] YOU CHOSE NOT TO PUT FOLLOW ACCOUNTS ON THEIR, ARE THERE LIKE ACCOUNTS CLICK >>WE HAVE COMMENTS, YOU CAN ENGAGE WITH PEOPLE, WE WERE SPEAKING ABOUT DOING THIS LIKE A REPUTATION POSSIBILITY. >>LIKE A CLOUD SCORE. >>HOW MUCH YOU INTERACT, WHEN IS OUTSIDE OF YOUR GROUP, AND HOW MUCH YOU POST, THE WORK THAT YOU ARE DOING, BUT THERE’S — SOMETHING LIKE THAT TAKES A LOT OF THOUGHT, YOU CAN’T REALLY TAKE IT BACK ONCE YOU PUT IT OUT THERE, THAT ONE WAS KIND OF DIFFICULT, REWARDING PEOPLE, FOR THESE TYPICAL KIND OF METRICS, CAN BE QUITE DAMAGING, AND CAN MAKE YOU FEEL , JUST BECAUSE YOU’RE NOT POPULAR OR TALENTED, THAT IS NOT TRUE, AND THE THING ABOUT CREATIVE ENDEAVORS IS THAT, YOU KNOW, THE THINGS THAT ARE POPULAR ARE NOT NECESSARILY THE BEST THINGS, AND JUST BECAUSE SOMETHING YOU DO IS NOT LIKED BY MANY PEOPLE, DOESN’T MEAN IT’S NOT INCREDIBLE, WE WANTED TO TAKE THAT METRIC AWAY, AND JUST HAVE PEOPLE BE ABLE TO CONNECT WITH WHOEVER THEY WANT, AND NOT BE A STATUS THING.>>AND YOU CAME OUT OF NOWHERE, AND I’M SURE YOUR FOLLOWER ACCOUNTS, AND SOCIAL MEDIA IS UP AND UP, TONS OF PRESSURE, DO YOU WISH THAT FOLLOWER ACCOUNTS AND LIKE ACCOUNTS WENT AWAY ACROSS THE WHOLE INTERNET? >>I SEEM TO BE LOSING FOLLOWERS AT THE MOMENT. IT’S NICE. >>FOLLOW HER. PLEASE. [ LAUGHTER ] >>I LIKE IT, YOU START TO FIND YOUR AUDIENCE, FOR A LONG TIME I WAS PART OF THE SHOW THAT HAD ITS OWN FOLLOWING, AND NOW THAT I’M DOING MY OWN ADVENTURES, AND WHATEVER IT IS THAT I AM DOING, I AM FINDING THE PEOPLE THAT REALLY LIKE THAT, RATHER THAN JUST PEOPLE WHO LIKE THE SHOW, SO THE OTHER THING IS THAT IT’S HARD TO FIND YOUR NICHE, AND WITH DAISY, THAT’S KIND OF WHAT IT’S ALL ABOUT, HELPING YOU FIND YOUR GROUP, RATHER THAN JUST A LONELY EXPERIENCE. >>DO YOU ACTUALLY GO ON TO DAISY AS A USER AND COLLABORATE? WHAT ARE THE CHANCES THAT PEOPLE SIGN UP FOR DAISY, AND YOU SAY YOU CAN WORK WITH ME ON THIS? >>PEOPLE REQUEST ME TO BE PART OF THE PROJECT ALL THE TIME. >>I BUT THEY DO. >>THERE INTERESTING, I LOVE TO READ ABOUT THEM, IN TERMS OF ACTUALLY WORKING ON THINGS, I’VE BEEN DOING DAISY AT THE MOMENT, AND WE ARE GOING TO START RAISING IT AGAIN, SOON, FOUNDING A COMPANY, TAKES A LOT OF TIME, I WOULD LIKE TO DO MORE CREATIVE ENDEAVORS, THE PEOPLE WANT ME TO BE INVOLVED IN IT, AND EVEN THEN, IT IS GREAT FOR THE MARKETING TEAM, IF THEY FIND SOMETHING REALLY INCREDIBLE, WE WOULD LOVE TO BRING THOSE CREATORS INTO THE MARKETING TEAM FOR A SMALL CAMPAIGN AND CREATE SOMETHING WITH THEM. THE DAISY COMMUNITY, ALSO THE PEOPLE WHO CREATE DAISY CONTENT, AND MARKETING, EVERYTHING LIKE THAT, IT IS REALLY NICE TO HAVE THAT FLOW, I GUESS. >>A BIT OF A VIRTUOUS CYCLE. >>DEFINITELY. >>ONE OF OUR WRITERS WROTE AN AMAZING PIECE ABOUT TIKTOK, AND HOW MARK SODERBERG DOESN’T UNDERSTAND IT, BUT I’M CURIOUS WHAT YOU THINK ABOUT THIS IDEA OF REMIXING CONTENT AS OPPOSED TO CREATING SOMETHING ORIGINAL, SOMETHING MORE AUTOBIOGRAPHICAL, TAKING THIS OTHER CONTENT AND MIXING IT UP, DO YOU THINK IT MAKES PEOPLE MORE CREATIVE OR LESS CREATIVE BECAUSE THEY ARE RECYCLING THINGS? >>I THINK WHEN YOU LIMIT VARIABLES THAT YOU USE, FOR HE CREATIVE IN DENVER, IT DOES MAKE YOU MORE CREATIVE, YOU HAVE TO THINK OUTSIDE OF THIS MUCH SMALLER BOX, WHICH I REALLY LOVE, AND I THINK THIS WHOLE RECYCLED MEME AFTER MEME, EDITS UPON EDITS, EVEN THE SPONGEBOB ONE THAT’S GOING AROUND, THE EPISODE WAS SO LONG AGO, IT KEEPS COMING AROUND AND AROUND, IS REALLY EXCITING, IT CAN HAVE A NEW LIFE, WE ARE ALL INSPIRED BY EVERYTHING WE SEE EVERY DAY, AND I DON’T THINK THAT — I THINK REALLY CELEBRATING IT, AND DOING REALLY WELL.>>ONE OF THE DIFFERENCES, I’M SORRY TO KEEP MAKING THE REFERENCE, JUST GORDON LEVIN SAID SPECIFICALLY, HIT RECORD IS NOT TO CREATE A VIABLE CAREER, IT IS REALLY ABOUT CONNECTING WITH LIKE-MINDED CREATORS TO BUILD SOMETHING TOGETHER.>>I THINK DAISY IS A DIFFERENT APPROACH. YOU’RE TRYING TO GET YOUR FOOT IN THE DOOR? >>YES, WE WANT TO TRY TO BRIDGE THE GAP IN ANY WAY THAT WE CAN. AT THE MOMENT WE HAVE USERS THAT COME ON FOR FUN, WHICH IS ABSOLUTELY FINE AND CELEBRATED, AND EVEN IF IT IS MORE OF A HOBBY, IT’S WHERE PEOPLE CAN UPLOAD THEIR WORK AND HAVE A GOOD TIME, BUT IN TERMS OF PEOPLE THAT ARE TRYING TO MAKE SOME SORT OF AREA FOR THEMSELVES TO BE RECOGNIZED FOR THE WORK THEY DO, PEOPLE DON’T KNOW WHERE TO START RIGHT NOW, IF YOU DON’T KNOW ANYONE IN THE CREATIVE INDUSTRIES, YOU DON’T KNOW WHERE YOU BEGIN, SO WE WE ARE TRYING TO CREATE SOMEWHERE WHERE THERE ARE REAL OPPORTUNITIES IN CLIENTS, AND PEOPLE TO FINANCE WORK THAT YOU ARE DOING. WE WANT TO CREATE A BIG HUB OF JEN Z CREATORS, — GEN Z CREATORS, IN ORDER TO LAUNCH THEIR CAREER. >>WHAT IS THE INTERNET LIKE FOR YOU? I’M NERVOUS GOING ON THE INTERNET, I’M NOBODY, YOU HAVE A SLICE OF PEOPLE THAT LOVE YOU, AND THEN PEOPLE WHO LOVE YOU IN A REALLY CREEPY WAY, AND THEN YOU HAVE PEOPLE MAYBE WHO DON’T LOVE YOU AS MUCH, AND IT IS JUST A LOT. WHAT IS IT LIKE FOR YOU TO BE A HUMAN ON THE INTERNET? >>IT IS STRANGE. BECAUSE I MEAN, THE INTERNET ISN’T REALLY BUILDS — BUILT — IT IS HARD TO BE ON THE INTERNET, BECAUSE OF THE FACT THAT YOU — YOU HAVE TO POST EVERYTHING TO BE SEEN ON THE INTERNET, YOU CAN’T BE QUIET ON THE INTERNET AND PEOPLE GET TO KNOW YOU. >>WE CAN, BUT YOU CAN’T. >>I GUESS SO. BUT BEING SEEN ON THE INTERNET, IS BECAUSE YOU POSTED SOMETHING OR HAVE ACTIVELY DONE SOMETHING. IT IS A STRANGE THING, IT IS A SIDE OF MY PERSONALITY ON THE INTERNET, FUN AND LOUD, AND EXTROVERTED I GUESS. BUT THERE IS A SIDE OF MYSELF THAT I KEEP FOR MYSELF AND THE PEOPLE THAT I KNOW IN PERSON, AND I MEET DAY TODAY — TODAY — DAY-TO-DAY, AND IS DIFFERENT. >>ONE OF THE QUESTIONS I WANT TO ASK YOU IS AROUND THE MEDIA INDUSTRY IN GENERAL, IT IS POSSIBLE THAT GAME OF THRONES WAS THE LAST SHOW THAT WE ALL TUNE INTO WEEKLY AND GET TOGETHER WITH OUR FRIENDS AND TALK ABOUT FOR THE NEXT WEEK. AND MAKE THEORIES ABOUT. WHAT ARE YOUR THOUGHTS ON SCHEDULED RELEASES VERSUS BINS YOU DOING? >>EVEN WITH SHOWS THAT I CAN BINGE VIEW, SHOWS THAT COME ON TO NETFLIX, A WHOLE SEASON AT ONCE, I TRY TO PACE MYSELF, I DON’T KNOW, IT IS NICE TO HAVE SUSPENSE, AND EVERYTHING IS SO FAST, I THINK IT WOULD BE NICE IF THESE THINGS LASTED LONGER. AND THE SHOW, YOU TYPICALLY WOULD’VE HAD LAST 10 WEEKS OF THE TIME, SOMETIMES THE BUILDUP TO THE SHOWS THAT ARE ONLINE IS LONGER THAN ANYONE IS TALKING ABOUT THEM, BECAUSE THEY’VE WATCHED THEM IN TWO DAYS, I THINK THAT’S A REAL SHAME, THE AMOUNT OF WORK THAT GOES INTO CREATING CONTENT LIKE THIS, AND YOU HAVE TO WAIT A WHOLE YEAR UNTIL THE NEXT ONE, IT IS A SHAME THAT EVERYTHING HAS BECOME SO FAST. BUT YOU KNOW, THE INTERNET, AND THAT WAY OF CONSUMING MEDIA, IS REALLY THE WAY FORWARD, A LOT OF COMPANIES THAT ARE MORE TRADITIONAL, LIKE CABLE, NETWORK SHOWS, THEY ARE NOW SORT OF PUMPING MONEY INTO THESE PLATFORMS FOR ME TO BE ABLE TO DO — FOR THEM TO BE ABLE TO DO STREAMING SHOWS, PEOPLE ARE MOVING IN THAT DIRECTION DEFINITELY, BUT I THINK IT IS A BIT OF A SHAME SOMETIMES. >>NOT ONLY FOR THE PEOPLE WHO CREATED A, YOU ARE RIGHT ABOUT THAT, THE HYPE CYCLE, BUT ALSO I FEEL LIKE YOU DON’T SPONGED IN QUITE AS MUCH AS A VIEWER EITHER? >>TRUE, YOU JUST MOVE ON, THE EPISODES END UP BLURRING TOGETHER, I CAN’T TELL WHICH EPISODE I’M SPEAKING ABOUT, IT BECOMES ONE BIG BLUR OF A SEASON, WHERE IS WHEN YOU HAVE SOMETHING STAGGERED, THE WHOLE WEEK, WONDERING WHAT’S GOING TO HAPPEN NEXT, THAT’S QUITE A NICE WAY OF CONSUMING SOMETHING.>>WITH THE STREAMING WARS GOING ON, IT’S AMAZING FOR ALL OF US, WE HAVE 1 MILLION THINGS TO CHOOSE FROM, GO WATCH WHATEVER YOU WANT, AND FINDING THE TIME TO WATCH IT ALL IS THE PROBLEM, BUT FOR TALENT ON THE OTHER END, DOES IT MAKE A DIFFERENCE? IS THIS A GOOD OR BAD THING, THE FACT THAT WE HAVE SO MANY PLATFORMS THAT ARE TRYING TO PUSH CONTENT TO US? >>YOU KNOW, I THINK AS LONG AS YOU ARE HAPPY, AND LIKE THE WAY YOU ARE CHOOSING TO LIVE YOUR LIFESTYLE, IT SITS RIGHT WITH YOU, I DON’T KNOW THAT IT IS A PROBLEM HOW YOU SPEND YOUR TIME.>>FOR YOU THOUGH, AS AN ACTRESS, LIKE –>>I THINK IT’S GREAT, I LOVE TO BE ABLE TO WATCH EVERYTHING, I SEE THAT AS BEING MY JOB, TO KNOW WHAT GOOD TV THERE IS, WHAT GOOD FILMS, WHAT IS BEING FINANCED, WHAT NEW NETWORKS ARE TAKING OFF, AND I FEEL I NEED TO KNOW THAT, I PARTAKE TO A CERTAIN EXTENT, BUT ALSO STARING AT A SCREEN ALL DAY MAKES ME INSANE, AND I CAN’T SLEEP AT NIGHT. I HAVE TO BALANCE THAT AND GO OUTSIDE SOMETIMES. THAT I DO LOVE TO HIDE AWAY AND WATCH YOUTUBE, AFTER NETFLIX, AMAZON, TV, MOVIES, AND START AGAIN FROM THE BEGINNING, GO BACK TO YOUTUBE, I LOVE TO DO THAT JUST AS MUCH IS ANYONE ELSE I THINK, AND YES, AS LONG AS I DON’T FIND IT DAMAGING WITHIN A DAY, I AM HAPPY TO DO IT FOR HOURS AND HOURS. [ LAUGHTER ] >>YOU TOLD ME THAT YOU DON’T REALLY HAVE UPCOMING PROJECTS IN TERMS OF ACTING STUFF, BUT DO YOU FEEL PRESSURE, GAME OF THRONES IS THE MOST POPULAR AND AWARD-WINNING SHOW THAT HAS EVER EXISTED ON THE PLANET. >>IT WAS SUCH AN AMAZING OPPORTUNITY, AND IF I DON’T DO ANYTHING LIKE THAT AGAIN, I’M NOT THAT MAD ABOUT IT.>>IT WAS AN OVERNIGHT THING. >>SORRY, SPOILERS. [ LAUGHTER ] >>IT WAS PRETTY ONE-OF-A-KIND AS FAR AS ANYTHING LIKE THAT GOES, AND I THINK MY GOAL NOW IS NOT TO DO SOMETHING LIKE THAT, BUT TO DO SOMETHING THAT PEOPLE MAYBE DON’T EXPECT, AND DO — PLAY A ROLE THAT PEOPLE WOULDN’T IMAGINE ME AS. BECAUSE I THINK THAT WOULD BE A LOT MORE FULFILLING THAN TRYING TO SURPASS ANYTHING THAT I’VE ALREADY DONE.>>YOU ARE 22? >>YES. >>YOU HAVE A LONG ROAD AHEAD OF YOU, WILL BE MORE ACTING, DAISY IS YOUR FULL-TIME FOCUS, IS IT ENTREPRENEURSHIP? >>I THINK EVERYTHING, I LOOK AT MY FUTURE, AND I WILL ALWAYS BE WITHIN CREATIVE INDUSTRIES I THINK, AND I HAVE LOVED FOUNDING DAISY, AND TRYING TO SEE WHERE WE GO IN THE NEXT FEW YEARS, AND WHAT HAPPENS, I HAVE ENJOYED MY TIME DOING THAT, BUT I THINK I WILL ALWAYS BE DOING SOMETHING CREATIVE, VERY OPEN TO THE FUTURE THAT IS COMING. I’VE NEVER REALLY HAD A PLAN, OR A GOAL, IT’S GOING OKAY. >>IT’S GOING GRADE. [ LAUGHTER ] >>KEEPING AN OPEN MIND IS GOOD. [ LAUGHTER ]>>>WE HAVE 1 MINUTE LEFT, WE WILL DO SOMETHING I LIKE TO DO, THE LIGHTNING ROUND, EITHER/OR QUESTIONS, YOU CAN PASS ON ONE, BUT I WOULD LIKE IT IF YOU DIDN’T. A REALLY EASY ONE. ARE YOU A CAT PERSON OR A DOG PERSON? >>DOG. >>GOOD ANSWER.>>NICK, KEVIN OR JOE JONAH’S? >>JOE. >>THAT IS EASY. DB WISE? >>YES. >>SORRY DAVID. >>NETFLIX OR APPLE TV PLUS? FOR ANY PROJECT? >>NETFLIX. >>DRAGONS OR DIRE WOLVES? >>I SEE THAT, DIRE WOLVES, BUT REALLY IS DRAGONS.>>THAT’S NEWS. [ LAUGHTER ] THE PRESS ARE LIKE OH MY GOD. SHE TURNED ON THE DIRE WOLVES! ACTING OR ENTREPRENEURSHIP? >>I’VE BEEN DOING A LOT OF ENTREPRENEURSHIP RIGHT NOW, SO I WILL GO WITH ACTING, BUT IT WILL SWITCH.>>ARE YOU MORE OF A PARTY PERSON OR WOULD YOU RATHER BE IN BED? >>BE IN BED. >>ME, TOO.>>TWITTER OR INSTAGRAM?>>I SPEND MORE TIME ON INSTAGRAM.>>INSTAGRAM. >>LAST ONE, JOHN SNOW OR SANSA CLICK >>SANSA. >>THINK YOU SO MUCH. >>THANK YOU FOR HAVING ME, HAVE A GREAT DAY.>>>IT IS LUNCH TIME, GO AHEAD AND ENJOY LUNCH, $10 OFF SWEET GREEN, THERE WILL BE SOMETHING ON THE EXTRA CRUNCH STAGE, AT 12:40. HOW TO BUILD A SEX CRUNCH. >>>MORE APIS ARE CREATED ACROSS THE ORGANIZATION, WITH THIS INCREASE, IT CAN BECOME MORE CHALLENGING FOR DEVELOPERS TO FIND THESE INTERNAL APIS AND USE THEM WHEN DEVELOPING NEW SOFTWARE, THAT IS WHERE RAPID API FOR TEAMS CAN HELP, IT ENABLES DEVELOPMENT TEAMS TO PUBLISH THEIR INTERNAL APIS INTO A PRIVATE WORKSPACE, THEY CAN FIND ANY INTERNAL ONE, VIEW THE DOCUMENTATION, TESTED AND COLLECT — CONNECT DIRECTLY. AND SHARE INFORMATION RIGHT IN RAPID API. TEAM MEMBERS CAN SUBSCRIBE TO ANY PUBLIC API AVAILABLE ON THE RAPID API MARKETPLACE, AND THE ENTIRE TEAM CAN SEE AND USE THE DESCRIPTION. IT MAKES IT EASIER TO SHARE ON APIS, GET ON RAPID API.COM/TEAMS. ♪>>>WE LIKE TO PARTNER WITH LOCAL ENTREPRENEURS WHO USE TECHNOLOGY, WE BACK LOCAL TEAMS, THEY KNOW THEIR CUSTOMERS BEST, AND THE BEST WAYS TO MAKE THE RIGHT DECISIONS, OPERATING EXPERTISE, AND OH — GLOBAL SCALE. OUR TEAMS LOVE BUILDING COMPANIES WHERE VALUE CAN MAKE A DIFFERENCE. AS WELL AS INVESTMENTS AND COMPANIES, WE ARE BUILDING MEANINGFUL GLOBAL DIFFERENCES IN CLASSIFIEDS, FOOD DELIVERY AND MORE. AND WE NEVER SIT STILL, WE ACTIVELY SEEK OPPORTUNITIES TO CREATE VALUE OVER THE LONG TERM, IT’S WHAT KEEPS US MOVING FORWARD. ♪ ♪♪ ♪>>>WHAT DID YOU COME TO THIS WORKSHOP? TO LEARN. AND WHAT THEY ARE SUPPOSED TO GET. >>WE WANT TO ASK QUESTIONS LIKE WHY, THE BIG QUESTION I ASK IS WHAT IF, A DIFFERENT WAY OF THINKING AT STAMFORD — STANFORD THAN ANY OTHER UNIVERSITY IN THE WORLD. >>I WAS GETTING STALE, IT IS TIME FOR ME TO MOVE ON, AND LOOK FOR GREATER THINGS, AND HAVE MORE IMPACT.>>>AT LOCKHEED MARTIN, WE ARE ON A MISSION. WHEN MILLIONS OF PEOPLE ARE COUNTING ON YOU, YOU CAN COUNT ON US. TO BUILD THE IMPOSSIBLE, TO INVENT THE INCONCEIVABLE, AND SOLVE EVERY PROBLEM WITH SPEED AND RELIABILITY. AN EXPOSITION OF THE GREATEST IMPORTANCE TO YOU AND TO US. >>>FACEBOOK JUST REINVENTED DIG NO MONEY, THE LIBRA CRYPTO CURRENCY WILL LAUNCH NEXT YEAR, IT IS MORE LIKE PAYPAL THAN BITCOIN, DESIGNED TO BE EASY ENOUGH FOR EVERYONE TO USE, BUT COMPLICATED TO UNDERSTAND, I WILL BREAK IT DOWN FOR YOU NICE AND SIMPLE, LIBRA IS LIKE CASH INSIDE YOUR PHONE, YOU CAN BUY THEM THROUGH WALLET APPS, OR THROUGH GROCERY AND CONVENIENCE STORES, CASH IN YOUR LOCAL CURRENCY LIKE DOLLARS, AND GET NEARLY THE SAME NUMBER OF LIBRA COINS, WHICH ARE REPRESENTED BY THE WAVY THREE LINE EMOJI INSTEAD OF THE DOLLAR SYMBOL, YOU HAVE TO VERIFY THE IDENTITY WITH A PHOTO ID, YOU WILL BE ABLE TO SPEND IT WHILE ONLINE SHOPPING, OR PAY FOR UBER OR SPOT A FIVE, THEY HAVE PARTNERED WITH FACEBOOK TO MAKE LIBRA POPULAR. SINCE IT IS ALMOST FREE TO MOVE ADDITIONALLY FROM ONE ACCOUNT TO ANOTHER, YOU WON’T HAVE TO PAY HIGH CREDIT CARD FEES THAT CAN ADD 4% OF THE TOTAL, AND SOME APPS AND SHOPS WILL GIVE BONUS DISCOUNTS FOR SIGNING UP WITH LIBRA, SEND AND REQUEST MONEY FROM FRIENDS LIKE YOU WOULD WITH PAYPAL OR VENMO, AND FACEBOOK IS MAKING ITS OWN APP CALLED CALIBRA, AND WHATSAPP, OR A STANDALONE APP, YOU WON’T HAVE TO HAVE A STANDALONE ONE, THEY WILL BE PUBLIC, FACEBOOK KNOWS IT’S A LITTLE BIT CREEPY, AND YOU DON’T WANT IT SPYING ON WHAT YOU BUY, SO THEY CREATED THAT COMPANY TO KEEP ALL OF YOUR FINANCIAL DATA SEPARATE FROM YOUR FACEBOOK PROFILE, THAT MEANS IT CAN’T USE YOUR TRANSACTION DATA TO TARGET YOU WITH ADS, OR SELL YOUR INFORMATION TO MARKETERS, EVENTUALLY FACEBOOK HOPE SHE WILL USE IT TO PAY BILLS, SCAN THE QR CODE TO PURCHASE COFFEE OR TABBY PHONE TO BUY A PUBLIC TRANSIT TICKET. ANY TIME YOU CAN CASH OUT OF IT AND GET THE LOCAL CURRENCY BACK IN THE BANK ACCOUNT ARE HANDED TO YOU AT A LOCAL STORE. BUT HOW DOES IT TECHNICALLY WORK , WITHOUT A BUNCH OF BLACK CHAIN BUZZWORDS? IT IS CODED TO HAVE A STABLE PRICE, BE SECURE AND BE CONTROLLED NOT JUST BY FACEBOOK. INSTEAD IT IS RUN BY THE 28 MEMBER LIBRA ASSOCIATION THAT THEY HOPE WILL GROW TO 100 MEMBERS BY THE TIME IT LAUNCHES IN THE FIRST HALF OF 2020. VISA AND MASTERCARD, MERCHANTS AND APPS LIKE eBAY AND LYFT, HURWITZ, UNION SQUARE VENTURES, AND EACH PAY AT LEAST $10 MILLION TO GET ONE VOTE ON THE LIBRA COUNSEL THAT CONTROLS WHAT HAPPENS TO THE CURRENCY, THEY WILL BE RESPONSIBLE TO MAKE SURE THE TRANSACTIONS ARE REAL AND CREATING THE LIBRA RESERVE. EACH TIME YOU CASH IN A DOLLAR, THAT GOES INTO A BIG BANK ACCOUNT, THE LIBRA RESERVE, THAT SEND YOUR ROUGH THE 1 LIBRA TOKEN, MADE UP OF A COLLECTION OF STABLE INTERNATIONAL CURRENCIES LIKE THE U.S. DOLLAR, BRITISH POUND, THE EURO, AND JAPANESE YEN, EVEN IF ONE OF THEM GOES UP AND DOWN IN PRICE, THE VALUE OF THE LIBRA WILL STAY STABLE, THAT WAY THEY WILL ACCEPT IT WITHOUT WORRYING IF THE VALUE WILL DROP TOMORROW. BIG SWINGS IN PRICE OR WHY OLDER CRITICAL CURRENCIES LIKE COIN AND HE THEORY THEM HAVE NOT GROWN POPULAR. THEY CAN ALSO HANDLE 1000 TRANSACTIONS PER SECOND, WHILE BITCOIN CAN ONLY HANDLE 7. SO HOW DO THEY EARN MONEY? INTEREST ON ALL THE ASSETS HELD IN THE LIBRA RESERVE. AFTER THE LIBRA ASSOCIATION PAYS FOR ITS OPERATION, MEMBERS EARN A CUT OF THE REMAINING INTEREST IN PROPORTION TO HOW MUCH THEY INVESTED WHEN THEY JOINED, IF LIBRA GETS POPULAR, THEN THE RESERVE GROWS HUGE, AND THE INTEREST COULD ADD UP TO SERIOUS REVENUE FOR FACEBOOK. BUT THERE IS A SUBTLE SECOND WAY THAT FACEBOOK CAN GET RICH FROM LIBRA, IF THE CURRENCY MAKES IT EASIER FOR SMALL BUSINESSES TO ACCEPT PAYMENTS ONLINE, THEY WILL SELL MORE STUFF, THEN THEY WILL HAVE EXTRA MONEY TO SPEND ON FACEBOOK ADS, EXTRA? TO BUY THINGS WITH LIBRA. 90 MILLION HAVE PAGES, BUT ONLY 7 MILLION EXIST, ON FACEBOOK, THE REVENUES COULD SKYROCKET. THE BIG RISK OF LIBRA IS THAT ANYONE WILL BE ABLE TO DEVELOP APPS FOR IT, THAT COULD LEAD TO ANOTHER CAMBRIDGE ANALYTICA SCANDAL. INSTEAD OF SOME SHADY AT MAKER SNATCHING YOUR PERSONAL INFO, THEY COULD STILL YOUR DIGITAL CURRENCY. AND FACEBOOK AND THE LABOR ASSOCIATION SAY THEY WON’T FIT LIBRA DEVELOPERS, LEAVING IT WIDE OPEN FOR ABUSE, IF PEOPLE GET SCAMMED, THEY WILL BLAME FACEBOOK, BUT IF FACEBOOK SUCCEEDS, THE REAL WIN COULD BE FOR THE PEOPLE LEFT IN POVERTY WITH NO BANK ACCOUNT AROUND THE WORLD. EXPLOITED BY INTERNATIONAL MONEY SENDING SERVICES LIKE WESTERN UNION OR MONEY GRAM THAT CHARGE STEEP 7% FEES THAT TAKE $50 BILLION AWAY FROM FAMILIES PER YEAR, AND IF THEY ARE MUGGED, THEY CAN LOSE ALL THEIR MONEY SINCE THEY HAVE NOTHING STORED ONLINE, BUT ALL THEY WILL NEED IS A PHOTO ID AND LIBRA CAN GIVE THEM AN ALTERNATIVE TO A BANK ACCOUNT THAT IS TOUGHER TO STEAL AND MAKE IT EASIER TO PAY FOR WHAT THEY NEED. THERE ARE PLENTY OF REASONS TO WORRY THAT IT COULD GIVE FACEBOOK AND OTHER TECH GIANTS MORE POWER OR THE TO PEOPLE GETTING SCAMMED, BUT ALSO COULD GIVE DISADVANTAGED PEOPLE EVERYWHERE AWAY TO JOIN THE MODERN ECONOMY, AND THE LEAST IT IS NOT CALLED PHASE GOING. — AT LEAST IT IS NOT CALLED FACECOIN.>>>WE ARE HERE TODAY TO TAKE A LOOK AT OUR NEW SYSTEM. THIS IS A DEDICATED HANDHELD SYSTEM, IT REALLY OPTIMIZED FOR PORTABLE, ON THE GO GAMING, IT LAUNCHES ON SEPTEMBER 20 FOR $199.09, TURQUOISE, YELLOW, GRAY, AND COMPATIBLE WITH THE VERY LARGE LIBRARY OF GAMES, ANY GAME THAT WORKS IN HANDHELD MODE WILL WORK ON THIS, IT IS OPTIMIZED FOR HANDHELD GAMING, SO IT HAS THOSE ATTACHED TO THE SYSTEM, AND A LITTLE BIT SMALLER THAN THE SWITCH, WE ARE REALLY ABOUT GIVING THE CUSTOMER CHOICE, WHETHER YOU ARE MORE OF A GAMER THAT WANTS TO PLAY IN THE LIVING ROOM, WITH THE SWITCH, OR YOU KNOW YOU ARE GOING TO BE REALLY GAMING ON THE GO A LOT MORE, THERE IS A SYSTEM OUT THERE, A NINTENDO SYSTEM OUT THERE FOR YOU TO PICK. ♪ ♪>>>WE ARE STANDING ON THE FLOOR WHERE WE JUST LAUNCHED A FEW DAYS AGO, THREE KEY FILLERS, IMMERSION, THE FIRST VERSION IS TWICE AS LARGE, AND WE HAVE THIS ABILITY TO INTERACT WITH HOLOGRAMS NATURALLY, INSTINCTUAL INTERACTION, REACHING OUT AND TOUCHING A HOLOGRAM AS IF THEY ARE THERE, AND A COMFORT FILLER, ADJUSTING THE CENTER OF GRAVITY, SENSORS IN THE FRONT, MAKING IT MUCH EASIER TO WEAR FOR A EXTENDED PERIOD OF TIME, AND WE TALKED TO CUSTOMERS, THEY WANT TO TALK ABOUT HOW THEY CAN QUICKLY GET VALUE OUT OF THESE HOLOLENSES, AND THE HELLENES, THE MICROSOFT SOLUTION, LIKE GUIDES, TRAINING YOUR CUSTOMERS AND YOUR EMPLOYEES IN A MUCH FASTER WAY THROUGH 3-D VISUALIZATIONS, IMMERSION, COMFORT AND TIME TO VALUE, WE THINK HOLOLENS 2 IS THE BEST WAY TO ENJOY MIXED REALITY. >>>TWO WAYS TO APPROACH A COPY SUBSCRIPTION MODEL, $25 PER MONTH, USING SERVICES, OR THE ENTERPRISE PACKAGE, WHICH IS $3500, WHICH HAS BEEN REDUCED FROM THE ORIGINAL PRICE OF HOLOLENS. >>>WE ARE BACK HERE, TIME TO TALK TO YOU ABOUT THIS. THE RIGO. THE APPLE WATCH SERIES 5, THAT LITTLE TRICK RIGHT THERE, WHAT YOU ARE LOOKING AT RIGHT NOW, ALWAYS ON DISPLAY, THE BIG FUTURE FOR THIS ONE, IF I COVER THE LIGHT SENSOR, OR IF I AM BRUSHING IT TO THE SIDE, THE BIGGEST FEATURE HERE, APPLE HAS IMPROVED BATTERY LIFE, YOU GET ABOUT 18 HOURS ON THIS, WHICH IS STANDARD, YOU’RE ABLE TO GET THAT THIS TIME, ALWAYS ON DISPLAY, AND YOU DID NOT SEE SLEEP TRACKING, I SUSPECT WE WILL GET QUITE A BIT MORE BATTERY LIFE, AND THE OTHER BIG IMPROVEMENT IS THE COMPASS, A BUILT-IN COMPASS, LIKE ON THE iPHONE, OPENING UP TO DEVELOPERS RIGHT NOW, APPLICATIONS YOU CAN POTENTIALLY USE, THE MOST OBVIOUSLY BEING THIS ONE, AND MY FRIEND AT APPLE SHOWED ME ONE OF THE EARLY APPS THAT HAS BEEN DEVELOPED, THE NIGHT SKY, VERY FAMILIAR TO MOST PEOPLE, SPIN IT AROUND AND YOU CAN SEE WHERE THE CONSTELLATIONS ARE IN THE SKY. THOSE ARE THE BIG TOP LEVEL FEATURES, INTERNATIONAL SOS, IF YOU HAVE AN EMERGENCY ABROAD. A COUPLE OF NEW CASE DESIGNS, CERAMIC HAS RETURNED, TITANIUM, THE PRICE POINT IS PRETTY HIGH, THAT IS AT $799. AND THE STANDARD WATCH IS $399, AND $499 IF YOU WANT LTE BUILDING. — BUILT IN. >>>WE ARE HERE, IN CUPERTINO, FOR THE iPHONE 11 LAUNCH EVENT, THIS IS THE iPHONE 11 PRO, 3 NEW MODELS, THE iPHONE 11, PROVO, MAX, THIS PRESENTS A LITTLE BIT OF A PARADIGM SHIFT FOR THE COMPANY, THEY ARE DOING AWAY WITH THE iPHONE R LINE, THEY ARE MAKING THE iPHONE 11 THE ENTRY LEVEL DEVICE, $690, A BIT OF A REACTION TO THE WAY THE SMART PHONES HAVE BEEN GOING, AND IF BIG PART OF THE REASON WHY PEOPLE ARE NOT BUYING SO MANY PHONES, THERE REALLY EXPENSIVE, APPLES FLAGSHIPS ARE CONTINUALLY OVER $1000, AND IT KIND OF MAKES THE iPHONE 11 PRO THE SUCCESSOR TO THE iPHONE 10 S. IT LOOKS VERY SIMILAR, THE FORM FACTOR IS VERY MUCH THE SAME, AND THE BIG DIFFERENCE HOWEVER, IF YOU GO BACK, IS THE ARRAY RIGHT HERE, SO IF YOU HAVE TRIP TO PHOBIA, THIS WILL MAKE YOU FEEL FUNKY. AND A SIMILAR SQUARE CONFIGURATION HERE, THIS ONE ADDS A THIRD, THAT DOES WIDE- ANGLE AND ULTRA-WIDE-ANGLE, THIS HAS THE TELEPHOTO LENS, SO YOU WILL GET BETTER VIDEO AND BETTER PHOTOS, AND ONE OF THE MORE INTERESTING FEATURES FROM A SOFTWARE PERSPECTIVE, IS SOMETHING CALLED DEEP FUSION, IT TAKES PHOTOS AND MAKES A COMPOSITE OF PHOTOS TO GIVE YOU MUCH BETTER IMAGES, AND A COUPLE OF OTHER DIFFERENCES, A LOT OF FUTURE UPDATES WITH IOWA’S 13.>>>THE SUPER RETINA DISPLAY, ON THE 11 PRO, 5.8, AND 615 INCH ON THE iPHONE 11, AND COMING AT THE END OF THE MONTH, AVAILABLE SEPTEMBER 20, STARTING AT $999, A SIMILAR PRICE POINT, AND $1099 FOR THE MAX. >>>LIVEWIRE IS A ALL-NEW HARLEY-DAVIDSON HALO PRODUCT, THE CORE ARCHITECTURE IS A PERMANENT MAGNET MACHINE, AND LITHIUM-ION TECHNOLOGY.>>HOW IS HARLEY DAVIDSON IN LIMITING THE TECHNOLOGY? ARE YOU LEVERAGING STARTUPS? IS IT ALL IN HOUSE? ARE YOU USING THE SILICON VALLEY OFFICE? >>IT STARTED WITH AN IDEA IN 2011, WE STARTED INVESTIGATING DIFFERENT TECHNOLOGIES, MOTOR ELECT TRONIC — TECHNOLOGIES, BATTERY PACKS, BACK TO 2011, WHAT WE STARTED DOING, AND YOU CAN SEE IN OUR STARTUP OF OUR WEST COAST FACILITY, WE ARE BRINGING A LOT MORE OF THE DESIGN AND DEVELOPMENT IN-HOUSE TO BRING THE ABSOLUTE BEST TECHNOLOGY TO MARKET. >>WHY IS HARLEY DAVIDSON PIVOTING TOWARDS ELECTRIC? >>LIVE MARK — LIVEWIRE REPRESENTS THE FUTURE OF HARLEY- DAVIDSON, AND WE CAN EXPECT TO SEE FUTURE MODELS WITH PART OF THE TECHNOLOGY THAT YOU SEE SHOWCASED TODAY.>>WHO IS IT FOR? >>IT IS FOR A LOT OF DIFFERENT PEOPLE. THE HARLEY DAVIDSON CUSTOMERS, THE LIVEWIRE IN THE HANDS OF OUR CUSTOMERS, THE NEW MARKET, URBAN, YOUNGER, WEALTHIER, THEY ARE HIGH IN TERMS OF STYLE AND APPRECIATION OF DESIGN AND QUALITY. AND THEY’RE LOOKING FOR AN ELECTRIC MOTORCYCLE FOR URBAN USE. >>HOW DOES HARLEY-DAVIDSON BALANCE THE CHROME AND STEAL GAS MARKET WITH TOENSING THE EV MARKET, A DIFFERENT DEMOGRAPHIC? >>THERE WILL BE, FOR SURE, IT IS AND, NOT OR, WE WILL LEAD IN TOURING AND CUSTOM DEVELOPMENT, MAKING MOTORCYCLES THAT WILL APPEAL TO CUSTOMERS, AND WILL REACH OUT TO NEW CUSTOMERS, NOT ONLY LIVEWIRE, BUT A WHOLE PORTFOLIO OF ELECTRIC VEHICLES IN THE FUTURE. >>SCOOTERS, BICYCLES? >>YOU NAME IT, WE WILL BE LEADING THE ELECTRIFICATION OF 2 WE’LL VEHICLES, PERFORMANCE POINTS, IN SOME CASES YOU WON’T NEED A MOTORCYCLE LICENSE, THE ELECTRIFICATION OF TWO WHEELS. STICKER PRICE POINT, WHICH COMES IN AT $29,000, HOW DO YOU EXPECT TO COMPETE WITH ZERO, AND NEW MOTORCYCLE, ROUGHLY COMFORTABLE — COMPARABLE AT $10,000 LESS? BIGGER THEY ARE NOT THAT COMPARABLE IN TERMS OF FINISH, PERFORMANCE, AND CUSTOMER EXPERIENCE, IF YOU THINK ABOUT THE LEVEL OF CUSTOMER AND DEALER INTERACTION, THEY WILL HAVE SERVICING ABILITY, CHARGING ABILITY AT STORES, AND THE ABILITY TO GIVE CUSTOMERS A BROADER AND WE BELIEVE BETTER CUSTOMER EXPERIENCE, WHEN THEY MAKE THE COMPARISON, THERE REALLY IS NO CHOICE. >>WITH LIVEWIRE, HARLEY- DAVIDSON WILL BE THE FIRST GAS MANUFACTURE, TO RELEASE A D MOTORCYCLE TO THE MARKET, DO YOU THINK YOU HAVE AN IMPACT TO SHIFT IT? >>EVERYONE IS WATCHING, WE ARE THE FIRST MOVER IN THE SPACE, WE HAVE THE BEST DEALER NETWORK, IN THE U.S. AND GLOBALLY, IT IS A VERY EXCITING TIME, I THINK YOU WILL SEE OTHERS MOVE AFTER HARLEY- DAVIDSON. >>IS LIVEWIRE ALL AMERICAN MADE?>>GOOD QUESTION. [ LAUGHTER ] LIVEWIRE IS ASSEMBLED IN PENNSYLVANIA, AMERICAN MADE. >>HARLEYS ARE FAMOUS FOR THEIR SOUND, IS THERE A ELECTRIC SOUND FOR LIVEWIRE? WEAKER IT WOULDN’T BE A HARLEY- DAVIDSON IF WE DIDN’T HAVE LOOK, SOUND AND FEEL. IT WILL BE AUTHENTIC TO HARLEY- DAVIDSON, COMING FROM THE COMBINATION OF THE ELECTRIC MOTOR, THE SPIRAL BEVELED GEAR, AND THE DRIVELINE, SPECIFICALLY TO HAVE THAT SOUND. >>A LITTLE QUIETER THAN A GAS BIKE THOUGH? >>ABSOLUTELY. >>>THE MOST ROBUST SYSTEMS OUT THERE ARE CONSIDERED LEVEL II, LEVEL IV IS CONSIDERED FULL AUTONOMY UNDER CERTAIN CONDITIONS, WHAT IS VIVIAN GOING FOR? >>LEVEL III, AUTONOMOUS DRIVING, IN CERTAIN CONDITIONS, IN CERTAIN GEO-FENCED AREAS, WE TAKE OVER THE ENTIRE DRIVING OPERATION OF THE VEHICLE IN A FAILSAFE MANNER. >>WHAT IS VIVIAN’S APPROACH, HOW DO YOU ENSURE THAT THERE IS SAFETY? BAKER WE ARE DRIVING A DUST DEVELOPING A DRIVER MONITORING SYSTEM, THAT IS NOT ONE SENSOR, LIKE IF THE DRIVER WANTS TO ACTUALLY DISENGAGE. AND THERE IS A CAMERA, AND HANDS-ON WHEEL SENSORS. >>THE BIGGEST ISSUE WITH THE MS IS NOT JUST THAT IT IS MONITORING THE DRIVER, BUT WHAT KIND OF CORRECTIVE OR PREVENTATIVE BEHAVIOR? >>THAT IS A GOOD POINT, DETERMINING THE DRIVER’S INTENTION, YOU HAVE ENABLED THE AUTONOMOUS SYSTEM. YOU HAVE PULLED OUT THE iPAD AND YOU’RE WATCHING A MOVIE, YOU KIND OF HAVE IT ON HER LAP, IF YOU WANT ATTORNEY GET YOUR NOTEBOOK, AND YOU INADVERTENTLY GIVE A STEERING INPUT TO THE STEERING CONTROLLER, IT SENSES TORQUE, THE CAMERA WILL SEE THAT, YOU’RE NOT LOOKING AT THE ROAD, WE WILL HAVE TO IGNORE THE INPUT FROM THE HUMAN TO UNDERSTAND THAT THEY ARE NOT INTENDING TO CHANGE LANES, THEY ARE DOING SOMETHING ELSE WHILE THE VEHICLE IS IN CONTROL. ON THE FLIPSIDE, THEY ARE RE- ENGAGING THE DRIVING TASK, SO YOU ARE APPROACHING YOUR PLANT EXIT, A MINUTE BEFORE THAT, THE VEHICLE WILL NOTIFY THE DRIVER THROUGH HMI THAT IT’S TIME TO GET READY TO DRIVE, BE AWARE OF SURROUNDINGS, AND WE WILL DETECT BOTH HANDS ON THE WHEEL, THE INPUTS OF THE STEERING AND THE DRIVER’S EYES ARE ON THE ROAD.>>MY JOB SPECIFICALLY IS GOING ON ADVENTURES TO MEET PEOPLE WHO ARE MOUNTAIN BIKING, SURFING, ROCKCLIMBING, I FLEW DOWN TO NORTH CAROLINA AND SHOWED UP AT THIS OVERLAND CONFERENCE WITH A COUPLE OF GENERATIVE RESEARCH TOOLS, WHICH ALLOWS THE PEOPLE THAT I’M TALKING TO, TO KIND OF CO- CREATE WITH ME, AS WE ARE TALKING. IT IS ASKING WHAT ARE THE TOOLS THAT YOU BROUGHT SPECIFICALLY FOR OVERLAND, THE BIGGEST PROBLEMS, WORKING TOGETHER ON THOSE PROBLEMS, AND BEING A PART OF THE COMMUNITY, BECAUSE I WAS THERE ALONE, THERE’S A LOT OF PEOPLE THAT INVITED ME TO THE CAMPSITE, AND WE ARE LIKE A, DO YOU WANT THIS GROUND BEEF BURRITO, EVERYBODY WAS MAKING IT ON THE TRIP, ATE LIKE SEVEN. [ LAUGHTER ] AND I’M SITTING IN HAVING CONVERSATIONS ABOUT THEIR VEHICLE, WHAT OVER LANDING MEANS TO THEM. >>GIVE YOU AN EXAMPLE, EITHER A DESIGN ELEMENT IN ONE OF THE 2 EXISTING MODELS THAT YOU CONTRIBUTED TO OR CAME DIRECTLY OUT OF YOUR RESEARCH? >>I DESIGNED THE CROSSBARS, ONE OF THE BIGGEST THINGS IS REALIZING THAT IT IS SUPER ANNOYING TO SET UP YOUR VEHICLE BEFORE EVERY SINGLE TRIP, BECAUSE THERE’S A LOT THAT NEEDS TO BE ATTACHED, OR TAKEN OFF, SO YOU DON’T HAVE THIS HUGE RACK ON THE BACK OF YOUR VEHICLE, THINGS LIKE THAT, SO ONE OF THE THINGS THAT WE DID WAS WE MADE IT A? RELEASE SYSTEM, SO THERE ARE PORTS ON THE ENTIRE VEHICLE, ALONG THE ENTIRE SPACE, 36 INCHES APART. THE CROSS BAR SYSTEM IS MODULAR, SO YOU CAN UNDO ONE OF THOSE CROSSBARS, TAKE IT OFF, IT SEEMS SIMPLE, A LOT OF PEOPLE AT THE SHOWS WHEN I’M TALKING TO THEM ARE LIKE WHY HAS NO ONE DONE THIS BEFORE? PARTLY BECAUSE WE HAVE THIS REALLY GREAT ECOSYSTEM OF THE VEHICLES, AND ALSO PROBABLY BECAUSE THERE ARE VERY FEW AUTOMOTIVE MANUFACTURERS WERE THE PROCESS IS INGRAINED THIS DEEP CAR RIGHT? BEFORE WE DESIGN ANYTHING, WE HAVE TO GO OUT AND TALK TO PEOPLE WHO DO THOSE THINGS, AND UNDERSTAND IT. ♪ ♪>>>Y LEVEL III? WHY CAN IT NOT BE ACHIEVED WITH LEVEL II?>>WE WANT TO EMBRACE THE CHALLENGE. WILLIAMS HAVE BEEN ADDING AUTOMATION TO CERTAIN CONTROLS OF THE CAR. AND THE LANE DEPARTURE WARNING, YOU SEE THEM COME TOGETHER THEY THAT WE WANT THEM TO LOVE IT, THE COMMUTE TIME, THE DRIVE TIME TO THEM TO UNWIND, OR ENGAGE IN SOMETHING ELSE WHILE THE VEHICLE IS ON THE DAILY COMMUTE, YOU WANT TO HANG WITH YOUR FRIENDS, SWAP THAN WHEN YOU ARE DRIVING HOME FROM A CLIMB, WE WANT TO ENABLE THAT FOR OUR CUSTOMERS. THERE ARE MOBILITY COMPANIES WORKING ON THE FLOOR, WORKING FROM THE TOP DOWN, FROM 4 5, FOR MORE FLEET APPLICATIONS POSSIBLY, WE WANT TO GET A FEATURE IN THE CUSTOMERS HANDS SOONER THAN POSSIBLY SOME OF THE OTHER SYSTEMS, MIGHT BE FULLY VETTED FOR LIGHT ADOPTION. ♪ ♪>>>MANAGING ON SHELF INVENTORY IS HARD, BECAUSE OF THE FLOW OF PRODUCT, THE VOLUME MAKES IT DIFFICULT TO MAKE SURE HE PRODUCT IS ON THE SHELF ON TIME FOR THE SHOPPER TO FIND IT. WE ARE ESSENTIALLY GIVING VISIBILITY TO THE STORES, TELLING THEM WHAT IS THE GROUND TRUTH, WHERE OTHER PRODUCTS, ARE THEY STOCKED, ARE THE IN THE RIGHT LOCATION, IS THE PRICE RIGHT.>>ARE THEY DOING ANYTHING THAT A HUMAN COULDN’T DO? >>THE ROBOT IS MUCH MORE MINUTE IN THE ANALYSIS, ROBOTS DON’T HAVE HANDS, THEY ARE NOT RESTOCKING SHELVES, BUT WHAT WE DO VERY WELL IS AUTOMATE THE DATA COLLECTION AND ANALYSIS. SO WE HAVE A BUNCH OF 3-D CAMERAS THAT WE POINT AT THE SHELF, AND AS THE ROBOT ROLLS DOWN THE AISLE, WE CAPTURE THE DETAILS OF THE SHELF, AND EVERY PRODUCT. >>HOW DOES THE DATA COME BACK TO THE EMPLOYEE? >>IT TELLS THEM WHAT PROBLEMS THEY WANT TO FIX IN ONE ORDER, WHEN THE SHIFT STARTS, YOU HAVE THE ENTIRE STORE ANALYZE, YOU HAVE THE PROBLEMS IN RANK ORDER, AND YOU CAN HIT THEM IN THAT ORDER, WHICH MAXIMIZES YOUR EFFICIENCY. >>YOU HAD THE UNDERLYING TECHNOLOGY, SOFTWARE, AI, THINGS LIKE THAT, BUT YOU HAD TO BUILD A CUSTOM ROBOT FOR WALMART’S NEEDS? >>YES, WE HAD THE BUILDING BLOCKS, BUT WE HAD THEM TOGETHER, IT TELLS YOU THE BASELINE, I TOLD YOU WHAT YOU CAN’T DO WITH THE BUILDING BLOCKS. WE DID THAT, THAT IS WHY IT TOOK SIX YEARS NOW WORKING ON IT, WE NACVELY THOUGHT IT WAS CAMERAS ON WHEELS, HOW DIFFICULT COULD THAT BE, NINE MONTHS WE COULD DEPLOY, AND HERE WE ARE CONTINUING TO PEEL THAT ONION. >>I LOOK AT A COMPANY LIKE YOURS, AND AMAZON ROBOTICS COMES TO MIND.>>SURE, YES. >>BUILDING THIS COMPANY, A GIANT RETAILER, START USING THEIR STUFF, AND ACQUIRES THEM CUT TURNS IT INTO AMAZON ROBOTICS, DID A DEAL LIKE THAT NOT MAKE SENSE FOR YOUR COMPANY? IS WALMART NOT IN THE BUSINESS OF BUYING TECHNOLOGY COMPANIES RIGHT NOW? >>I HAVE TO LEAVE THAT TO WALMART TO ANSWER, IF WE WERE TO GUIDE OUR OWN DESTINY, IF WE CONTINUE TO BE SUCCESSFUL DOING THAT, WHAT WE WOULD LIKE TO DO IS SERVE THE ENTIRE INDUSTRY, BECAUSE FUNDAMENTALLY THE PROBLEM WE ARE SOLVING, LACK OF VISIBILITY OF WAS ON THE SHELF, IS UNIVERSAL, THE ENTIRE WORLD HAS THE SAME PROBLEM. AND NOBODY HAS A SOLUTION, AND FOR LARGE STORES, THE BEST SOLUTION IS A COMBINATION OF ROBOTS AND AI, WE WANT TO DO IS COMPLETELY MAXIMIZE THE IMPACT AND HELP THE INDUSTRY IN GENERAL IMPROVE THEIR EFFICIENCY AND THE SHOPPING EXPERIENCE.♪ ♪>>>THE FIRST IN WHAT IS AVAILABLE FOLDABLE SMART PHONE, 54 MILLIMETERS, AND WE SUPPORT THE SUPERCHARGED 55 WATTS, BIG BATTERIES, GIVING YOU THE BEST EXPERIENCE, AND FOLDABLE, GIVES YOU 6 POINTS SIX BIG, LARGE SCREEN, AS A MOBILE, AND CAN TRANSFORM INTO A TABLET, AND IT IS A FLEXIBLE, SOFT STRING, THE UN-FOLDABLE, THE IMPORTANT THING IS THE HINGE, HUAWEI TOOK THREE YEARS TO MAKE A 180 DEGREE NO DESIGN, WHEN YOU ARE FOLDING. WE WILL START TO LUNCH IN COUNTRY STARTING FROM THE MIDDLE OF THIS YEAR, THE PRICE IS B,2199, BUT IT VARIES BY COUNTRIES. >>>WHAT MAKES I AM — IM ROBOTICS UNIQUE, DOING A TASK THAT A PERSON WOULD HAVE TO DO TO GRAB PHYSICAL ITEMS OFF THE SHELF. THE PROBLEM IS THAT e-COMMERCE IS GROWING, SPENDING MORE MONEY ONLINE, PUTTING A STRAIN FOR MORE AND MORE PEOPLE TO DO THE WORK IN MATERIAL HANDLING FOR e- COMMERCE, OUR CUSTOMERS ARE PROSPECTIVE CUSTOMERS ARE LOOKING TO AUTOMATE TO REDUCE COSTS, BUT ALSO TO ALLEVIATE THIS MANUAL LABOR SHORTAGE. >>OBVIOUSLY AMAZON IS GROWING IT AND BUILDING IT IN-HOUSE, AND 2012, AND THE CLIENTELE IS LARGELY SMALLER, OR THE SOURCE OF PEOPLE THAT ARE LOOKING FOR A SYSTEM LIKE THIS. >>THE COOL THING IS, YOU DON’T HAVE TO BE A GIGANTIC PLAYER OR HAVE A MASSIVE MULTIBILLION- DOLLAR WAREHOUSE TO AUTOMATE, THEY DO MORE THE FULL TASK OF WHAT A PERSON WOULD DO, THEY PROVIDE THAT VALUE AT A LOWER PRICE POINT. >>BUT THE GOFER USED TO HAVE A ONE SIZE FITS ALL APPROACH THAT ALL THESE DIFFERENT COMPANIES CAN PLUCK ONE OFF THE SHELF AND DEPLOY IT? >>WILL HAVE THE BREATH, BUT ALSO BEEN HANDLING, WE STORE EVERYTHING IN BINS, THE ROBOTS RETRIEVE THE BINS AND MOVE THEM TO A CONVEYOR, AND TAKE THE BINS AND MOVE THEM TO A SHELF, ANYTHING THAT YOU CAN PUT A — IN A BOX OR BEEN CAN BE HANDLED BY ROBOTS EFFECTIVELY. >>>THE IMPOSSIBLE BURGER, NOT ONLY FOR MEDIATORS, IT IS PREFERRED, THREE TIMES, A FRACTION OF THE USE OF LAND AND WATER, AND HITS THE SPOT FOR THOSE OF US WHO CRAVE A DELICIOUS, CREDITABLE BURGER. THE LAST 2 1/2 YEARS, WE’VE GATHERED EVERY FEED BACK, NOT JUST LIKE THE CELEBRITY CHEFS, BUT MEAT EATERS AROUND THE COUNTRY, THE REQUEST IS TO MAKE IT MORE VERSATILE, EASIER TO COOK, IT IS BEEFIER AND TASTIER, BETTER TEXTURE, THE IMPOSSIBLE BURGER, A NEW RECIPE, PUT IT ON A SLATED GRILL, COOK IT ALMOST ANYWAY A NORMAL BURGER FROM A COW CAN BE COOKED. >>IT GRILLS BEAUTIFULLY, GOOD TO SAUTC WITH, YOU CAN MAKE CHILLY, OR THE GROUND BEEF, THAT YOU PUT IN A EMPANADA, MEATBALLS REALLY WELL. YOU CAN DO REALLY ANYTHING YOU CAN DO WITH GROUND BEEF, YOU JUST DON’T WANT TO OVERCOOK A COPTIC IT’S DRY JUST LIKE BEEF GETS DRY. IT IS MORE SIMILAR TO GROUND BEEF THAT IS 80% LEAN AND 20% FAT.>>THE BIGGEST CHALLENGE FOR US IS THE FACT THAT OUR MISSION IS ONLY SERVED WELL IF WE — MEAT EATERS PICK OUR PRODUCT, THAT’S WHAT WE SEEN — HAVE SEEN NATIONWIDE TODAY, BUT THEY HAVE BEEN TERRIBLY DISAPPOINTED BY THE PLANT-BASED MEANS OF THE PAST, THIS IS DIFFERENT, THE CREDIBILITY OF CELEBRITY CHEFS IS AN IMPORTANT WAY TO OVERCOME THE BARRIER. >>SOY PRODUCTS THAT MIMIC TURKEY OR BACON JUST HAVEN’T DONE IT FOR ME, WE DIDN’T BOTHER TO GET TOO INVOLVED, SO FOR ME, AS A CHEF, IT IS VERY EXCITING TO HAVE THIS NEW TOOL IN MY TOOLBOX.>>WE PROTOTYPE 100 NEW PRODUCTS PER WEEK, I’VE TRIED FOR THE TYPES OF A IMPOSSIBLE STEAK, IMPOSSIBLE CHICKEN NOODLE SOUP, THERE IS NO LIMIT TO R&D AT IMPOSSIBLE FOODS. >>>A PUBLIC AND PRIVATE PARTNERSHIP, WE ARE HERE TO BRING INDUSTRY, RESEARCH AND GOVERNMENT TOGETHER TO WORK ON THE ADVANCED MOBILITY TECHNOLOGIES, CONNECTED VEHICLES, AUTOMATED VEHICLES, TO HELP BRING THEM TO SOCIETY IN A THOUGHTFUL AND BENEFICIAL WAY. WE RUN A BUNCH OF DIFFERENT LIVING LABORATORIES, INCLUDING A TEST FACILITY, BUT ALSO SUPPORTING RESEARCH, AND A LOT OF THESE AREAS, ABOUT $27 MILLION OVER THE LAST FOUR YEARS IN ENGINEERING, SOCIAL SCIENCES, LAW, ALL KINDS OF DISCIPLINES THAT TOUCH THESE NEW TECHNOLOGIES. WE DO ALL SORTS OF RESEARCH PROJECTS, MOTION SICKNESS, THE CONFIGURATIONS OF TOMORROW, WILL THEY BE REASONABLE, A REASONABLE THING, OR THE MITIGATION TO KEEP PEOPLE FROM FEELING GROSS WHILE THEY ARE USING IPADS. AND THE TESTING OF HIGHLY AUTOMATED VEHICLES, HOW CAN WE GUARANTEE THAT THESE SYSTEMS ARE SAFE AND READY TO GO OUT ONTO PUBLIC ROADS AND MIX WITH REAL HUMANS, IN TERMS OF BUILDING PUBLIC TRUST AROUND THE SAFETY AND TESTING OF THESE SYSTEMS, WE NEED A MORE OPEN SET OF TESTING STANDARDS. IT WILL BE A LITTLE WHILE BEFORE GROUPS CAN FINALIZE STANDARDS IN THIS AREA. WE CAN HELP FEED INTO THAT. YOU CAN IMAGINE COMPANIES, GETTING THEM TO AGREE ON TECHNOLOGIES IS PRETTY MUCH IMPOSSIBLE. FOCUSING ON POLICY, AS MUCH AS GOOD POLICY THROUGH DATA COLLECTION, ON ROW DEPLOYMENTS, THOSE SORTS OF PROJECTS. AND THE MEMBER COMPANIES ARE HERE TO SHARE DATA WITH EACH OTHER ON A LOT OF TOPICS, YOU CAN IMAGINE SAFETY FOR EXAMPLE IS WERE NO COMPANY WANTS TO HAVE THE UPPER HAND, WE CAN SEE THE RISING TIDE FLOATS ALL BOATS, RING AND THE COMPANIES TOGETHER AND HAVE EVERYONE BE FOLLOWING BEST PRACTICES, AND EVERYONE BENEFITS. >>>OPEN IN THE EARLY 80s, BUILDING A VARIETY OF NAMEPLATES AND CAR SIZES, CURRENTLY WE HAVE 1100 PEOPLE ON THE SITE BUILDING SMALL CARS, AND OF COURSE THE EV. >>FOR FOLKS WHO DON’T KNOW, AREN’T FAMILIAR, SPECIFICALLY MANUFACTURING VEHICLES ON A SINGLE LINE, WHAT IS INVOLVED IN THAT PROCESS? >>YOU CAN HAVE SEPARATE LINES, IT WOULD BE VERY INEFFICIENT, OBVIOUSLY, THE PEOPLE AND THE FACILITIES, IT IS NASA, YOU WANT TO LEVERAGE THAT TO THE FULLEST ABILITY, BEING ABLE TO INTEGRATE EV, AV INTO ONE SINGLE LINE, THE EXPERTISE WE HAVE, AND ALSO IT PROVIDES US AN OPPORTUNITY TO BE ABLE TO BE MORE EFFICIENT THAN WE WOULD IF WE WERE SEPARATED. >>IS IT UNUSUAL TO HAVE THE INTERNAL COMBUSTION ENGINE VEHICLE AND EV ON THE SAME LINE? >>PROBABLY THE ONLY PLANT THAT I’M AWARE OF, WITH THE INTERNAL COMBUSTION ENGINE. ON THE SINGLE SEMI LINE. >>>WE HAVE THE CAPABILITY AND FLEXIBILITY FOR WHATEVER MIX IS REQUIRED.>>THESE ARE DONE IN BATCHES OF SIX OR SEVEN VEHICLES AT A TIME.>>NOT TO GET INTO THE SPECIFIC STRATEGY, LIKE I SAID WE HAVE SOME SHARING BETWEEN THE GROUPS, WE SPECIFICALLY TRY TO FIGURE OUT HOW TO BE MOST EFFICIENT WITH SPECIFIC CONTENT. AND WHAT MAKES SENSE TO BE ABLE TO SHARE ON THE SINGLE LINE SO WE DID DEVELOP THIS AREA IN THE FACILITY TO MAKE SURE WE COULD SCALE, THEY ARE SET UP EFFICIENTLY SPECIFIC TO THE AV, IT IS A FEW OPERATIONS BUT THIS WAS THE RIGHT WAY TO GO ABOUT IT. AFTER THE FEW OPERATIONS DONE DOWN HERE THAT ARE AV SPECIFIC THE CAR GETS INTRODUCED INTO THE SAME LINE THAT THE REGULAR PRODUCTION CARS DO.>>ANYTHING ELSE WE SHOULD KNOW ABOUT THE VEHICLE?>>THERE IS A LOT OF ENGINEERING THAT YOU DO NOT SEE THAT HAS GONE INTO THIS TO MAKE IT AV CAPABLE. I COULD GO ON AND ON AND GET INTO THE NUTS AND BOLTS THAT WE HAVE DONE A FANTASTIC JOB INTEGRATING IT INTO THIS FACILITY WITH THE PEOPLE. LEVERAGING WHAT WE BELIEVE IS THE COMPETITIVE ADVANTAGE WHICH IS THE ASSEMBLY PROCESS.>>>LADIES AND GENTLEMEN PLEASE SILENCE ALL MOBILE DEVICES, THE PROGRAM IS ABOUT TO BEGIN. LADIES AND GENTLEMEN PLEASE TAKE YOUR SEATS THE PROGRAM IS ABOUT TO BEGIN.>> TECHCRUNCH DISRUPT. >>LADIES AND GENTLEMEN PLEASE WELCOME TECHCRUNCH SENIOR WRITER AND YOUR BATTLEFIELD HOST. >>EVERYONE HAVE A GOOD LUNCH? WELCOME BACK TO THE START UP BATTLEFIELD THIS IS THE THIRD SESSION, WE WILL SEE FIVE MORE , EACH OF THE SESSIONS IS ALL KINDS OF STARTUPS AND THIS ONE WILL BE NO EXCEPTION. BEFORE WE BRING OUT THE STARTUPS I WILL BRING OUT THE EXPERT JUDGES, FIRST UP WE HAVE OUR PARTNER FROM NEA WHO HAS LED MANY OF THE FIRM INVESTMENTS IN INDUSTRIAL SOFTWARE SYSTEMS AND ADDITIVE MANUFACTURING.>>[ APPLAUSE ]>>NEXT FOUNDER AND MANAGING PARTNER AT COWBOY VENTURES WHICH SEEKS TO BACK EXCEPTIONAL TEAMS BUILDING TECHNOLOGY THAT REIMAGINES WORK AND PERSONAL LIFE IN LARGE AND GROWING MARKETS, WHAT THEY CALL LIFE 2.0. SOMEONE IS EXCITED ABOUT LIFE 2.0. NEXT WE HAVE FOUNDER AND MANAGING PARTNER AT GRADIENT VENTURES PRIOR TO STARTING GRADIENT SHE WAS THE VICE PRESIDENT OF ENGINEERING IN AI INTEGRATING AI INTO PRODUCTS ACROSS GOOGLE.>>NEXT WE HAVE PARTNER AT LIGHTSPEED VENTURE PARTNERS PREVIOUSLY WORKING ON BRANDING AND MARKETING AT NUT ONLINE WEALTH MANAGEMENT FOR MILLENNIALS. LAST BUT NOT LEAST WE HAVE BRADLEY TUSK CEO AND FOUNDER OF TASK VENTURE THE FIRST VENTURE CAPITAL FUND DEDICATED TO WORKING WITH AND REGULATING STARTUPS, GIVE IT UP FOR ALL JUDGES. NOW IT IS TIME TO BRING OUT THE VERY FIRST STARTUP OF THIS ROUND, THAT STARTUP HERE.>>FOR THE LAST 25 YEARS OF THE INTERNET HAS BEEN THE WILD WEST. BETWEEN PUBLIC OPINION AND GOVERNMENT REGULATION WHEN GDP R CAME INTO EFFECT THAT ERA ENDED FOREVER. THE AVERAGE COMPANY THINKS THEY SHARE DATA WITH ABOUT 40 DIFFERENT COMPANIES BUT IN FACT THEY SHARE WITH AN ASTOUNDING 750 AND IT IS AMAZING WHAT WE CAN DO WITH MODERN TECHNOLOGY THERE IS NO EASY WAY TO TRACK WHAT’S HAPPENING WITH ALL THE DATA AND THERE IS NO EASY WAY FOR COMPANIES TO COMPLY WITH THE PRIVACY OBLIGATIONS. UNTIL NOW. DATA PRIVACY PLATFORM MAKES IT EASY FOR COMPANIES TO IDENTIFY WHICH VENDORS ARE BEST TO WORK WITH. TO COMPLY WITH LAWS LIKE CALIFORNIA PRIVACY LAWS AND OTHER UPCOMING REGULATIONS AS WELL AS GDPR. CUSTOMERS CAN BROWSE LAWSUITS AND THEY CAN LOOK AT THE POLICIES FOR COMPANIES THEY ARE DOING BUSINESS WITH. UTILIZING OUR PROPRIETARY DATA SET OF 7000 DIFFERENT VENDORS, OSANO PROVIDES A 360 DEGREE VIEW OF EACH VENDOR PRIVACY PRACTICE. OSANO ASSIGNS AN OBJECTIVE SCORE MAKING IT EASY FOR COMPANIES TO IDENTIFY WHERE THEY HAVE RISK. CUSTOMERS CAN BROWSE LAWSUITS AGAINST VENDORS, THEY CAN TRACK LEGISLATION AND WE CAN TRACK THOUSANDS OF CONVOLUTED PRIVACY POLICIES ON THEIR BEHALF. OSANO INCLUDES A FULLY MANAGED COOKIE CONSENT SOLUTION SO WITH ONE LINE OF CODE WEBSITES CAN BECOME COMPLIANT WITH THE LAWS OF 40 DIFFERENT COUNTRIES AND THE DIALOGUES APPEAR IN THEIR NATIVE LANGUAGE. AS WELL OSANO OFFERS DEVELOPER API SO THE DEVELOPER CAN BUILD DATA PRIVACY INTO THE APPLICATION AND WORKFLOW. LET’S MOVE OVER TO THE DEMO. ON THE SCREEN YOU CAN SEE WEBSITE THAT IS NOT COMPLYING WITH THE LAW. WHEN WE LOAD UP THE WEBSITE WE CAN SEE 80 DIFFERENT COOKIES IN THE FORMS OF BEACONS, AD NETWORKS AND SOCIAL SHARES. IT IS GREAT FOR MARKETING TO DRIVE TRAFFIC RETARGET AND ANALYZE VISITOR BEHAVIOR THERE IS NO EASY WAY FOR THEM TO COMPLY WITH THE LAW. OSANO CUSTOMERS WITH A COUPLE OF CLICKS CAN COPY AND PASTE SOME CODE TO THE WEBSITE AND WITH THE ONE LINE OF CODE THEIR WEBSITE BECOMES COMPLY AUTOMATICALLY AND OSANO WILL ENFORCE BEST PRACTICE, LET’S LOOK AT THE SAME WEBSITE WE OSANO. WHEN THE PAGES LOADED THERE ARE THREE CENTRAL COOKIES AND NO THIRD-PARTY SCRIPTS. GO AHEAD AND CONSENT. NOW SCOTT HAS CONSENTED AND OSANO LETS THOSE SCRIPTS LOAD AND THE BROWSER IS FULL OF COOKIES BUT WHAT IS DIFFERENT IS THIS WEBSITE IS COMPLYING WITH THE LAW, COMPLYING BY COLLECTING CONSENT IS AN OBLIGATION AND FAILING TO DO THAT RESULTS IN SEVERE PENALTIES AND FINES. OSANO CUSTOMERS, OSANO CAPTURES A LIST OF ALL THE DATA, ALL THE VENDORS IN YOUR WEBSITE AND SENDS IT BACK TO THE SERVERS, CUSTOMERS CAN AUTOMATICALLY LOGIN AND VIEW THE VENDORS THEY SHARE DATA WITH. LOOK AT THE PRIVACY PRACTICES AND SEE HOW THEY RANK AND MAKE DECISIONS BASED ON THAT DATA, VISITORS CAN ALSO BROWSE LAWSUITS AGAINST VENDORS AND THEY CAN BROWSE HISTORICAL AND CURRENT PRACTICE POLICIES AND COMPLIANCE DOCUMENTS. LET’S SWITCH BACK TO THE PRESENTATION. DATA PRIVACY AND COMPLIANCE USED TO BE A COMPLICATED MANUAL PROCESS. OSANO MAKES IT EASY, ONE PLACE TO SEE YOUR VENDORS, PRIVACY RISKS AND RATINGS AND ALL THE DATA TRANSFERS THAT ARE HAPPENING. BY 2023 COMPANIES WILL BE SPENDING MORE THAN $3.3 BILLION PER YEAR ON DATA PRIVACY SOFTWARE WHICH IS UP FROM $500 MILLION LAST YEAR. OSANO IS TARGETING THE 90% OF COMPANIES WHO ARE NOT SERVED BY THE EXPENSIVE POINT SOLUTIONS SUCH AS THE 800 POUND GORILLA ONE TRUST WHICH IS EXPENSIVE AND HARD TO USE. I HAVE 14,000 USERS OF THE FREE PRODUCT, BY CONTRAST OSANO HAS 750,000 USERS WITH FREE COMPLAINTS PRODUCT INCLUDING THOSE COMPANIES THAT YOU CAN SEE ON THE SCREEN. THOSE COMPANIES SERVE MORE THAN 2 BILLION CONSENT DIALOGUES PER MONTH USING OUR SOFTWARE AND THIS IS A TARGET RICH ENVIRONMENT BECAUSE WE ARE ALREADY THERE COMPLIANCE VENDOR OF RECORD AND WE ARE THE BEST TEAM TO TACKLE THIS PROBLEM. I BOOTSTRAPPED MY FIRST COMPANY INTO A $50 MILLION CATEGORY LEADER. SCOTT AND I ARE COMING OFF A SUCCESSFUL VENTURE BACKED EXIT AND SCOTT IS A BRILLIANT ENGINEER HAVING RISEN THE RANKS THROUGH MICROSOFT AND DELL UNTIL HE THANKFULLY GOT THE START UP BUG AND THE DOZENS OF ATTORNEYS WHO WORK WITH US HAVE DEEP DATA PRIVACY EXPERTISE. THEIR WORK IS TRAINING THE MACHINE LEARNING MODEL SO IN THE FUTURE WE CAN AUTOMATE MUCH OF THE POLICY REVIEW PROCESS. DON’T LET YOUR VENDORS PUT YOU AT RISK. BE PROACTIVE ABOUT DATA PRIVACY, GET AHEAD OF THE LAW, GO TO OSANO WEBSITE TODAY AND SIGN UP FOR A FREE TRIAL, THE FIRST 50 COMPANIES USING THE CODE BATTLEFIELD WILL GET 50% OFF FOR A FULL YEAR. THANK YOU.>>[ APPLAUSE ] >>JUDGES?>>I HAVE A QUESTION. HOW MUCH DOES IT COST? ANNUAL, MONTHLY? >>OSANO IS INTENDED TO BE SELF-SERVICE WITH ENTERPRISE OFFERINGS THAT WE FOCUS ON THE SMALL AND MIDMARKET SO WE HAVE A FREE LEVEL, WE HAVE A MID- LEVEL AND THEN TOP WHICH IS $200 A MONTH.>>IF THEY USE THIS WILL THIS COVER ALL OF THEIR NEEDS OR DO THEY ALSO HAVE TO THINK ABOUT ONE TRUST OR SOME OTHER SERVICE? >>IF THEY USE OSANO, THEY DO NOT NEED TO USE ONE TRUST, ONE TRUST IS GREAT BUT THEY REALLY FOCUS ON THE BIG ENTERPRISE COMPLICATED WORKFLOW, YOU NEED TEAMS OF PEOPLE AND WEEKS OF TRAINING, A GREAT COMPANY THAT I RESPECT BUT IF YOU USE OSANO YOU DO NOT NEED THEM. >>YOU HAVE A STRONG WHY BUT LIKE SO MANY OTHER COMPANIES THAT HAVE THAT MANY OTHERS COME INTO THE SPACE SO CAN YOU TELL US ABOUT HOW YOU VIEW THE BARRIERS TO ENTRY. >>WE DO HAVE PROPRIETARY DATA SO THE DATA SET OF 7000 VENDORS WHERE WE HAVE THEM RANKED SO WE HAVE SOMETHING UNIQUE NOBODY ELSE HAS. WE ALSO HAVE COMPETITIVE ADVANTAGE IN THE FACT THAT WE HAVE 1 MILLION VISITORS PER MONTH TO THE WEBSITE LOOKING FOR COMPLIANCE SOLUTIONS ALREADY BECAUSE OF THE OPEN SOURCE AND OPEN CORE. WHAT WILL SET US APART ARE THOSE ITEMS AND THE FACT THAT WE ARE FOCUSED ON SMALL AND MEDIUM ENTERPRISE WHEREAS THE VAST MAJORITY OF COMPETITORS HAVE FOCUSED ON BIG ENTERPRISES, THE REASON THEY WERE FOCUSING ON GDPR EXCLUSIVELY WHERE WE ARE FOCUSING MORE BROADLY AND WE CAN HELP COMPANIES IN CALIFORNIA, BRAZIL, YOU NAME IT.>>YOU SAID 750,000 CUSTOMERS WEBPAGES AND WEBSITES, CAN YOU TELL US HOW YOU GOT THOSE CUSTOMERS? >>WE OWN AND OPERATE THE MOST POPULAR OPEN-SOURCE COOKIE CONSENT SOLUTION IN THE WORLD IT IS CALLED COOKIE CONSENT. THIS PRODUCT WAS BUILT IN 2015 BY ANOTHER COMPANY. WE ACQUIRED IT AS SOON AS WE FORMED THIS COMPANY, REBRANDED AND TOOK OWNERSHIP AND CONTINUE TO MAINTAIN. THERE ARE 1700 FORKS OF THE PRODUCT WITH MANY ACTIVE DEVELOPERS AND IF YOU HAVE SEEN A COOKIE CONSENT MY APOLOGIES IT IS PROBABLY OURS.>>YOU MENTIONED THE COMPLIANT SOFTWARE, I ASSUME THAT IS BECAUSE THE WORLD IS CHANGING RAPIDLY. IF THE WHOLE WESTERN WORLD OR THE WHOLE WORLD ADOPTS A VERSION OF GDPR WHAT DOES THE NUMBER GO UP TO? ULTIMATELY WHAT WOULD THE SPEND BE IF THE GDPR STANDARD BECAME A GLOBAL STANDARD. >>SO WE SEE THE STANDARD IS BECOMING THE GLOBAL STANDARD. THE CALIFORNIA PRIVACY LAW GOES INTO EFFECT JANUARY 1 WHICH IS EFFECTIVELY A NATIONAL LAW SO WE HAVE ALL OF WESTERN EUROPE, ALL OF THE UNITED STATES, ANYBODY WHO DOES BUSINESS IN WESTERN EUROPE OR THE UNITED STATES SO WE DO HAVE GLOBAL LAWS BEING FLAUNTED BY PEOPLE IN SMALLER COUNTRIES WITHOUT MUCH ACCOUNTABILITY. THE 3.3 BILLION DOES ACCOUNT FOR THAT WHICH CAME FROM A THIRD PARTY STUDY SO 33% COMPOUNDED ANNUAL GROWTH OVER THE NEXT FOUR YEARS. >>CAN YOU TALK ABOUT YOUR RANKING SYSTEM AND WILL YOU WORK WITH VENDORS TO CHANGE THEIR RANKING AND AGAIN YOU ARE SELF-SERVICE YOU CANNOT AFFORD TO DO A LOT OF ACCOUNT MANAGEMENT IF THE WEBSITE USES A LOWER RANKED VENDOR AND THEY GET HACKED OR THEY HAVE PROBLEMS WHAT IS THE LIABILITY AND HOW DO YOU WORK WITH THEM TO MAKE SURE THEY’RE COMPLYING WITH RECOMMENDATIONS?>>GREAT QUESTIONS. STARTING IN THE REVERSE, WE CARRY INSURANCE POLICIES AND CYBER LIABILITY SO THAT IS THE FIRST LINE OF DEFENSE IF WE MAKE A MISTAKE BECAUSE IT WOULD NOT BE INTENTIONAL. AS FAR AS RANKING VENDORS WE HAVE A PROPRIETARY 163 QUESTION ONTOLOGY SO WE HAVE TWO DOZEN ATTORNEYS WHO REVIEW ALL THE COMPLICATED COMPLIANCE DOCUMENTS AND THEN THEY ANSWER THE QUESTIONS. THOSE QUESTIONS MAP CLOSELY TO THE STANDARDS SO THE COMPANY DOES WELL ON THE RANKING THEY WILL DO WELL IN THOSE AREAS. IT IS PROPRIETARY SO WE WILL NOT SHARE THE SECRET SAUCE BUT IT IS COMPREHENSIVE AND IT LOOKS ACROSS THE SPECTRUM AT GDPR, DATA SECURITY AND MANY OTHER FACTORS. >>HOW DO YOU STAY UP-TO-DATE WITH CHANGING REGULATION?>> GOOD QUESTION. WE HAVE A LOT OF ATTORNEYS SO THAT IS HELPFUL. WHERE ONE OF THE FEATURES, WE ADVISE CUSTOMERS ABOUT NEW REGULATIONS. WE ARE SEEING MORE THAN ONE NEW REGULATION PROPOSED EVERY SINGLE WEEK. SO IT IS A FLURRY OF ACTIVITY. WE LOOK, WATCH AND MONITOR. WE ADVISE CUSTOMERS AND AS THE LAW CHANGES YOU KNOW WE WILL ADJUST THE PRODUCT ACCORDINGLY.>>FINAL QUESTION.>>COULD YOU GUYS GET TO A POINT WHERE SO YOU PROVIDE RATINGS ON VENDORS, LITIGATION INFORMATION AND A LOT OF DATA POINTS PEOPLE CAN USE. IS THERE A WAY TO GET TO THE YES OR NO AND SAY BASED ON THIS, THIS VENDOR IS IN COMPLIANCE OR NOT? >>WE HAVE PRODUCT ROADMAP ITEMS FOR CUSTOMERS TO SET THEIR OWN THRESHOLDS SO THE INTERNAL COMPLIANCE TEAMS CAN GET YES OR NO IN THE PROCUREMENT CYCLE OR IF THEY ARE LOOKING BACKWARD TO CUSTOMERS AND THE VENDORS THEY HAVE IN THEIR WALLS THEY CAN QUICKLY IDENTIFY THOSE THAT THEY HAVE TO GO REMEDIATE. >>ALL RIGHT GIVE IT UP FOR OSANO. >>TIME FOR THE NEXT STARTUP TO COME OUT, PRESENTING NOW FOR OUR NEXT STARTUP.>>THERE ARE OVER 400,000 INVESTMENT ADVISORS IN THE UNITED STATES, MANAGING OVER $70 TRILLION IN ASSETS BUT LITTLE HAS CHANGED IN THE SPACE OVER THE PAST FEW DECADES. CLIENTS EXPECT PERSONALIZED PORTFOLIOS TAILORED TO THEIR NEEDS BUT INSTEAD ARE GETTING DUMPED INTO GENERIC BUCKETS OF MUTUAL FUNDS AND ETF’S. CLIENTS PAY FOR INDIVIDUALIZED ADVICE AND EDUCATION. BUT ADVISORS DO NOT HAVE THE TIME, TOOLS OR TECHNOLOGY TO DELIVER. EXPECTATIONS HAVE CHANGED OVER THE PAST 20 YEARS AND THE TECHNOLOGY HAS NOT BEEN ABLE TO KEEP UP. HOWEVER, ADVISORS HAVE BEEN DOING ONE THING RIGHT. THEY HAVE BUILT LASTING AND TRUSTED RELATIONSHIPS WITH THEIR CLIENTS. THESE ARE ATTRIBUTES THAT TOOLS OR TECHNOLOGY WILL NEVER BE ABLE TO REPLACE. SO WE ARE INTRODUCING THIS ARTIFICIAL INTELLIGENCE PLATFORM TAILORED TO INVESTMENT ADVISORS SO THEY CAN AUTOMATE PORTFOLIO CONSTRUCTION AND MANAGEMENT. VISE AI EMPOWERS ADVISORS TO BUILD PERSONALIZED PORTFOLIOS AROUND THE CLIENT ‘S VALUES, GOALS AND DREAMS. HERE IS A LITTLE BIT MORE ABOUT HOW IT WORKS. VISE AI ANALYZES A CLIENT INVESTMENT NEEDS AND BUILDS THEM A PERSONALIZED PORTFOLIO OF STOCKS, BONDS AND OTHER ASSETS, WE THEN PROVIDE THE PORTFOLIO INTELLIGENCE FOR THEM TO EXPLAIN THOSE DECISIONS AND THE WHY BEHIND THEIR PORTFOLIO TO THE CLIENTS, ALL CLIENTS WANT TO HEAR A GOOD STORY AND TO SHOW YOU MORE LET’S MOVE TO THE DEMO. HERE IS THE DASHBOARD WHERE THE ADVISORS CAN SEE KEY ACTION ITEMS AND DATA ABOUT THEIR CLIENTS BUT THE CORE OF THE PLATFORM IS IN THE PORTFOLIO CREATOR. HERE THE ADVISORS CAN SEAMLESSLY TRANSITION EXISTING PORTFOLIOS FROM THEIR CUSTODIANS INTO VISE AI, WE DO ALL THE WORK SAVING THEM THE TIME AND THE HASSLE. NEXT WE TAKE A GOAL-BASED APPROACH TO THE INVESTMENT LOOKING A CLIENT GOALS, RISK CRITERIA, BEHAVIORAL GUILT HEALS AND OTHERS AND BUILDING A CUSTOMIZED PORTFOLIO AROUND THOSE CONSTRAINTS. NEXT WE LOOK AT THE PORTFOLIO STRUCTURE. WHETHER IT IS ASSET CLASS, STOCK OR SECTOR FOR EXAMPLE IF A CLIENT WORKS AT FACEBOOK THEY PROBABLY DON’T WANT FACEBOOK OPTIONS IN THE PORTFOLIO, THEY WANT REDUCED EXPOSURE TO TECHNOLOGY AND DEFINITELY DON’T WANT FACEBOOK. NEXT WE LOOK AT THE INVESTMENT STRATEGY WHETHER IT IS A VALUE STRATEGY OR GROWTH STRATEGY OR ANY NUMBER OF STRATEGIES WE CAN CUSTOMIZE A STRATEGY ON A FIRM WIDE BASIS OR CLIENT BASIS, WHETHER THEY WANT SMALL-CAP GROWTH OR SMALL OR LARGE CAP VALUE WE CAN BUILD IT IN AND EMBED IT INTO THE PORT FOLIO. NEXT THE ADVISOR CAN REVIEW THE PORTFOLIO HERE. UNLIKE AN EQUITY MANAGER WE LIFT THE HOOD SHOWING THE ADVISOR EXACTLY WHAT THEY ARE INVESTING IN AND WHY. WITH ENCHILADA PORTFOLIO HAS PERFORMED THROUGH DIFFERENT TIMES LIKE THE 2000 CRASH OR THE 2008 RECESSION, WE WILL THEN SHOW THEM HOW THE PORTFOLIO IS EXPECTED TO PERFORM OVER THE NEXT 20 YEARS AND LASTLY AND MOST IMPORTANTLY WE PROVIDE THE PORTFOLIO INTELLIGENCE, THIS IS THE STORY, THAT THE ADVISOR NEEDS TO TELL TO THE CLIENTS. IF YOU NEED TALKING POINTS AND JUSTIFICATIONS THE ADVISORS CAN GIVE THEM MAKING THEM LOOK SMARTER AND PROVIDING A BETTER RESULT. VISE AI AUTOMATES ALL OF THE MANAGEMENT, REBALANCING AND EVERYTHING SO ADVISORS CAN FOCUS ON WHAT THEY DO BEST, BUILDING GREAT CLIENT RELATIONSHIPS. MOVING BACK TO THE PRESENTATION. UNLIKE TRADITIONAL MODELS WE DON’T JUST LOOK AT HISTORICAL DATA WE COUPLE ADVANCED MODELS WITH MACHINE LEARNING TO BUILD A PERFECT PERSONALIZED PORTFOLIO FOR EACH CLIENT, WE THEN HAVE A PROPRIETARY NATURAL LANGUAGE GENERATION MODEL WHERE WE CAN LOOK AT OTHER PREVIOUS MODEL DID TO EXPLAIN AND JUSTIFY THOSE DECISIONS USING THE PORTFOLIO INTELLIGENCE FEATURE. OUR COMPETITION IS MOSTLY MUTUAL FUNDS AND EQUITY MANAGERS, MUTUAL FUNDS AND EQUITY MANAGERS PROVIDE LOW DIFFERENTIAL TO THE ADVISOR WITH HIGHLY GENERIC AND HIGH FEED PORTFOLIOS, SERVICE ADVISORS PROVIDE A DIGITAL ADVANTAGE TO THE MUTUAL FUNDS AND EQUITY MANAGERS BUT THEY STILL DO NOT PROVIDE THE CUSTOMIZATION AND TRUE VALUE THE ADVISORS NEED AND THEY ARE HIGH COST. THIS IS NOT JUST A DREAM. THIS IS A REALITY. WE HAVE PARTNERED WITH FORTUNE 100 INSTITUTIONS AND SUCCESSFUL TRAILBLAZERS TO GIVE US A DISTRIBUTION ADVANTAGE TO OVER 25,000 ADVISORS. WE HAVE A TEAM OF, WE CHARGE A LOW FEE OF 20 BASIS POINTS SELLING DIRECTLY TO INVESTMENT ADVISORS. WE HAVE A TEAM OF TOP PHD RESEARCHERS FROM COMPANIES LIKE GOOGLE, MORGAN STANLEY, EáTRADE AND OTHERS, THE BUSINESS TEAM HAS A BACKGROUND WITH COMPANIES LIKE WELLS FARGO AND EáTRADE AND HAS RUN SUCCESSFUL FIRMS IN THE PAST. ADVISORS HAVE FOUNDED COMPANIES LIKE FUTURE ADVISOR ONE OF THE FIRST ROBO ADVISORS AS WELL AS OTHER COMPANIES. FEEL FREE TO VISIT US AT THE VISE AI WEBSITE AND REFER US TO YOUR FINANCIAL ADVISOR, WE WOULD LOVE IT AND WE THINK YOU COULD BENEFIT AS THE CLIENT. >>[ APPLAUSE ]>>OKAY JUDGES. >>CAN YOU TALK A LITTLE BIT ABOUT WHAT TESTING YOU HAVE DONE ON YOUR MODELS IN TERMS OF PAST PORTFOLIO PERFORMANCE AND WITH YOUR GUIDANCE HOW THE OUTCOMES IN TERMS OF DESIRED RETURNS MIGHT LOOK DIFFERENT? >>THAT IS A GOOD QUESTION. THE ONE UNIQUE THING IS BECAUSE WE ARE BUILDING A PERSONALIZED PORTFOLIO FOR EACH CLIENT EVERYTHING IS DIFFERENT SO IT’S NOT LIKE WE JUST TEST ONE MACRO STRATEGY, BUT WE HAVE SEEN WE HAVE GOOD RISK-ADJUSTED RETURNS SO THE BENCHMARK IS NOT NECESSARILY ALPHA IT IS THE BEST RETURN TO LOWEST AMOUNT OF RISK AND WE HAVE TESTED THAT RATHER THAN JUST USING OVER FITTED BACK TESTING WE LOOK AT FEEDING THE DATA FROM A TIMEFRAME LIKE 1990 AND RUNNING THE MODEL FORWARD WITH NEW DATA SO IT’S FRESH. AND THEN TRAINING BACKWARDS.>>IN MOST INDUSTRIES CUSTOMERS NEED TO HEAR ABOUT SOMETHING TWICE ON AVERAGE TO PURCHASE. IT IS SO LOW HERE THAT CUSTOMERS NEED TO HEAR ABOUT THIS FOR A FIVE TIMES SO HOW DO YOU BUILD TRUST OR BUILD A TRUE BRAND FOR FINANCIAL ADVISORS? >>THAT’S A REALLY GOOD QUESTION. WE ARE ALSO PARTNERED WITH THE BIG CUSTODIANS SO CHARLES SCHWAB, EáTRADE, FIDELITY. THEY DO A LOT OF THE WORK IN TERMS OF DISTRIBUTION AND HELPING US SELL THE PRODUCT AND A PROVIDES SIGNIFICANT CREDIBILITY ESPECIALLY BECAUSE WE PARTNER WITH THEM. >>HOW DO YOU SUGGEST CHANGES? YOU’RE NOT GOING TO FLY STRAIGHT MY ACCOUNT RIGHT? >>SO AS THE CLIENT CHANGES THE ADVISOR WILL ENTER THAT AND WE WILL REALLOCATE THE PORTFOLIO ACCORDING TO THE CLIENT LOST A JOB OR THE INCOME CHANGE OR MAYBE THE GOALS CHANGED, THEY INHERIT MONEY OR IF THE MARKET CHANGES AND WE NEED TO MAKE A CHANGE WE WILL UPDATE THE ADVISOR TO SAY HEY WE ARE MAKING A CHANGE IN THIS IS WHY BUT THE ONE THING WE DO NOT DO HIS TIME BASED THREE BALANCES BECAUSE THEY HAVE BEEN PROVEN NOT TO WORK. >>OFTENTIMES WITH FINANCIAL ADVISORS THERE IS A MISALIGNMENT BETWEEN THE ECONOMIC INCENTIVES FOR THE ADVISORS AND THE BEST INTEREST OF THE CLIENT HOW DO YOU SEE THIS EITHER HELPING REALIGN WHAT YOU THINK IT WILL NOT IMPACT?>>THAT IS A GOOD QUESTION. A LOT OF MUTUAL FUNDS PROVIDE LOADS LIKE REFERRAL FEES FOR THE FUNDS SELECTED BUT THAT IS A DYING PRACTICE AND ADVISORS ARE STARTING TO REALIZE THAT AND THEY HAVE DONE THAT FOR THE LAST NUMBER OF YEARS AND WITH NEW REGULATIONS, ADVISORS ARE STARTING TO HAVE TO BECOME MORE AND MORE FOR THEIR CLIENTS SO RIGHT NOW MOST TOOLS DO NOT EMPOWER THEM BUT WE ARE BECAUSE WE ARE PROVIDING PERSONALIZATION AND A LEVEL OF TOUCH AND THE ABILITY TO BETTER EXPLAIN SO IT BUILDS TRUST IN THE PORTFOLIO. WHENEVER SOMETHING NEW HAPPENS WE WILL ALERT THEM AND CLIENTS LOVE TO GET THE PHONE CALL SAYING HEY THIS JUST HAPPENED WITH THE PORTFOLIO, A NEW GOAL HAS BEEN HIT OR THIS IS HOW YOUR STOCK POSITIONS ARE DOING. IN THE THIRD PIECE IS TRANSPARENCY. WHAT MOST ADVISORS HAVE BEEN DOING PROVIDING EQUITY MANAGED PORTFOLIOS OR MUTUAL FUND PORTFOLIOS IS THE CLIENTS DO NOT UNDERSTAND WHAT AND WHY THEY ARE INVESTING BUT WITH US WE CREATE A TRANSPARENT PORTFOLIO OF INDIVIDUAL STOCKS AND OTHER ASSETS WHERE THE ADVISOR CAN TELL THE CLIENT WHAT THEY ARE INVESTING IN AND THERE’S A TRANSPARENT SET OF FEES WHERE THEY KNOW THIS IS THE SET FEE GETTING BILLED TO YOU AND IT IS FAR CHEAPER THAN THE MUTUAL FUNDS WHICH IS IN EXCESS OF 1%.>>IS THE DASHBOARD ONLY AVAILABLE TO THE ADVISOR OR IS IT ALSO AVAILABLE TO THE PORTFOLIO OWNER? >>ONLY AVAILABLE TO THE ADVISOR BECAUSE ALL THE OTHER TECHNOLOGY EXISTS SO WE ARE INTEGRATED WITH THE COMPANIES THAT WILL PROVIDE IT TO THE CLIENT. WHERE THE INNOVATIONS NEED TO OCCUR IS WITHIN ASSET MANAGEMENT SO THIS IS THE ADVISOR FACING INTERFACE AND MAYBE EVENTUALLY WE CAN GO DIRECT TO THE CLIENT. >>TELL US MORE ABOUT THAT. WHY NOT GO DIRECT TO CLIENT? DO YOU FEEL LIKE THE ADVISORS ARE PROVIDING THEM WITH SERVICE AND THEY NEED TO HANDLE THE CUSTOMER OR MORE AND MORE CUSTOMERS WANT TO DO MORE ON THEIR OWN?>>THE AVERAGE ACCOUNT SIZE IS AROUND $30,000 SO YOU WILL NOTICE EVEN WITH MILLENNIALS AS THEY ACCRUE ASSETS THEY WANT TO TALK TO A HUMAN ABOUT THEIR MONEY AND THEIR RELATIONSHIP ELEMENT IS INCREDIBLY IMPORTANT AND IS NOT GOING AWAY. WE HAVE THIS SPACE WHICH SILICON VALLEY DOES NOT NOTICE, IT IS GROWING AT A RAPID RATE SO THE INDEPENDENT ADVISORS GREW 17% LAST YEAR CONTROLLING AN ENORMOUS AMOUNT OF THE MARKET. SO THERE ARE CLEAR ASSETS AND THEY AGGREGATE A LOT TOGETHER SOMEONE ADVISOR COULD MANAGE 100 OR 200 MILLION VERSUS GOING DIRECT TO CONSUMER AND ACQUIRING 200 MILLION BEING A LOT HARDER AS YOU HAVE SEEN WITH ROBO ADVISORS. >>THE FOCUS IS TOO SIMPLE FOR THE BUSINESS FOR THE ADVISOR SO THEY CAN FOCUS ON WHAT THEY LOVE THE MOST, THEIR CLIENTS AND CLIENTS LOVE THAT.>>THEY ARE GREAT AT BUILDING RELATIONSHIPS AND IF WE EMPOWER THAT RELATIONSHIP AND GIVE THEM THE ABILITY TO ACT SMARTER AND GET MORE EXCITED IT IS A MUCH BETTER VALUE PROPOSITION FOR THE CLIENT AND FOR THE ADVISOR. >>WHAT IS THE PURCHASE DECISION PROCESS WHEN YOU PITCH A FINANCIAL INSTITUTION, HOW DO THEY MAKE THE DECISION ON WHETHER TO BUY AND WHAT ARE THE KPIS? >>WE ARE NOT NECESSARILY GOING TO THE FINANCIAL INSTITUTIONS YET. SO IF YOU’RE THINKING MERRILL LYNCH OR OTHERS WE ARE THINKING IF YOU WERE TO START A FINANCIAL ADVISORY FIRM AND GET YOUR RICH FRIENDS TOGETHER YOU WOULD BE A CLIENT AND THERE ARE A TON OF THOSE GUYS IN THE COUNTRY SO THE WAY THEY EVALUATE IS LET’S TEST OUT THE PRODUCT AND SEE HOW WELL IT WORKS WITH SOME CLIENTS AND THEN WE CAN GROW SHARE OF WALLET OVERTIME SO THE REASON WHY WE TYPICALLY GET NO IS BECAUSE I’M TOO BUSY WORKING WITH MY CLIENTS I DON’T HAVE TIME TO GET ON THE PHONE BUT WHEN WE GOT ON THE PHONE WITH THEM AND DEMONSTRATE THE VALUE PROPOSITION LET’S TRY IT OUT AND THEN GROW OVER TIME. >>ONE MORE ROUND OF APPLAUSE FOR VISE AI. >>[ APPLAUSE ]>>YOU CAN GO NOW. ALL RIGHT. LET’S BRING OUT OUR NEXT STARTUP. CIVIC CHAMPS NOW PRESENTING.>>$2 TRILLION IN ANNUAL REVENUES. 10% OF THE U.S. ECONOMY. IF I WERE TO ASK YOU WHAT INDUSTRY THIS REPRESENTS YOU MIGHT THINK RETAIL, CONSTRUCTION, PERHAPS MANUFACTURING. THE ANSWER IS A NONPROFIT SECTOR. UNFORTUNATELY, NONPROFITS CONTINUE TO BE UNDERSERVED BY THE TECH COMMUNITY, MANY RELY ON PEN AND PAPER FOR CORE PROCESSES LIKE SCHEDULING, VOLUNTEER TRACKING, EVEN DONATIONS. TRY TO ENVISION A CONSUMER FACING COMPANY LIKE CVS OR STARBUCKS USING PEN AND PAPER FOR ITS CUSTOMER LOYALTY PROGRAM. INSTEAD, VOLUNTEERS SHOULD BE TREATED NO DIFFERENTLY THAN RETAIL CUSTOMERS. VOLUNTEERS NOT ONLY GIVE 6.9 BILLION HOURS OF SERVICE EACH YEAR, THEY ARE TWICE AS LIKELY TO DONATE AND DONATE 10 TIMES MORE THAN NON-VOLUNTEERS. INTRODUCING CIVIC CHAMPS A MOBILE PLATFORM THAT WILL FUNDAMENTALLY CHANGE HOW NONPROFITS OPERATE AND ENGAGE THEIR SUPPORTERS. CIVIC CHAMPS PROVIDES AUTOMATED VOLUNTEER MANAGEMENT BY PROVIDING THREE DIFFERENT WAYS FOR NONPROFITS TO TRACK VOLUNTEER HOURS. A MOBILE APPLICATION THAT USES GEO-FENCING TECHNOLOGY, A SELF- SERVICE KIOSK MODE THAT CAN BE LAUNCHED ON ANY DEVICE AND THE ADMINISTRATIVE FEATURE WITHIN THE MOBILE APP THAT ALLOWS STAFF MEMBERS TO CHECK IN VOLUNTEERS ON THEIR BEHALF AND TODAY WE ARE EXCITED TO LAUNCH THE INTEGRATED MICRO DONATIONS PLATFORM THAT WILL ALLOW FOR NONPROFITS TO AUTOMATICALLY CONVERT VOLUNTEERS TO DONORS. LET’S GO TO DEMO. SO, YOU ARE THE VOLUNTEERING TYPE LET’S SEE WHAT YOUR EXPERIENCE WOULD BE LIKE AT HABITAT FOR HUMANITY. AS DANA SHOWS UP SHE RECEIVES A NOTIFICATION ASKING IF SHE IS THERE TO VOLUNTEER, SHE CONFIRMS THAT SHE IS WHICH LAUNCHES A TIMER. THIS CRITICAL INFORMATION IS USED BY NONPROFITS TO UNDERSTAND THE LEVEL OF ENGAGEMENT OF THEIR VOLUNTEERS AND IT IS A KEY IMPACT METRIC USED TO SHARE WITH FOUNDATIONS AND DONORS. WHEN DANA IS DONE FOR THE DAY SHE CHECKS OUT AND CONFIRMS WHAT ACTIVITY SHE HAS DONE AND IF SHE IS PART OF A GROUP, SHE CAN NOW LEAVE A REFLECTION AND GIVE OUT A HIGH-FIVE TO THE STAFF AT HABITAT WHICH IS A FUN WAY TO SAY THANK YOU THAT SHE CAN FEEL ON HER PHONE TO HAPTIC FEEDBACK. NOW DANA, YOU JUST HAD A GREAT EXPERIENCE VOLUNTEERING. IN THIS MOMENT YOU ARE FEELING THE MOST INSPIRED. SO YOU ARE GIVEN THE OPPORTUNITY TO FURTHER YOUR SUPPORT OF THIS ORGANIZATION AND THUS SOLVING ONE OF THE KEY MISSED OPPORTUNITIES OF NONPROFITS, CONVERTING VOLUNTEERS TO DONORS. BY LEVERAGING VOLUNTEER DATA WE CAN TELL NONPROFITS WHEN TO GIVE, HOW MUCH TO GIVE AND WHAT TO SAY. IN THIS EXAMPLE DANA DONATE ONE DOLLAR FOR EACH HOUR SHE HAS VOLUNTEERED. SHE’S ABLE TO CONNECT WITH A CORPORATE MATCHING ACCOUNT WHICH DOUBLES HER IMPACT. IMAGINE IF EVERY VOLUNTEER WAS INCENTIVIZED TO DO THE SAME. THAT’S GO BACK TO PRESENTATION. ONE THING YOU MIGHT KNOW FROM WHAT YOU SAW IS A REQUIRED NO WORK FROM THE HABITAT STAFF. IT WAS SIMPLE EASY AND EFFICIENT. ONE QUESTION YOU ARE ASKED OFTEN OR WE ARE OFTEN ASKED IS WHO ARE OUR COMPETITORS? WE HAVE THREE BUCKETS, THOSE SERVING NONPROFITS, THOSE THAT SERVE VOLUNTEERS AND THOSE THAT SERVE CORPORATIONS. UNLIKE THESE COMPETITORS CIVIC CHAMPS HAS A DATABASE AND TECHNOLOGY ARCHITECTURE UNIQUELY BUILT TO SERVE THE FULL MARKET. ALLOWING FOR SEAMLESS DATA SHARING BETWEEN NONPROFITS, VOLUNTEERS AND CORPORATIONS. CIVIC CHAMPS IS TARGETING THE $1.7 BILLION CRM MARKET FOR NONPROFITS. THIS IS $6.3 BILLION AS WE ADD ADDITIONAL FEATURES AND $20 BILLION AS WE LOOK AT JC INDUSTRIES SUCH AS CORPORATE SOCIAL RESPONSIBILITY, POLITICAL CAMPAIGNS AND DONATION PROCESSING. IN THE LAST FIVE MONTHS WE HAVE GONE FROM LAUNCH TO SERVING 34 CLIENTS, 100% OF THE GROWTH COMING FROM WORD-OF-MOUTH REFERRAL. WE EXPECT 200 CLIENTS BY NEXT APRIL, THESE CLIENTS PAY BETWEEN 25 REFERRAL. WE EXPECT 200 CLIENTS BY NEXT APRIL, THESE CLIENTS PAY BETWEEN $25-$450 PER MONTH AND ARE NEAR HOME OFFICES IN BLOOMINGTON INDIANA AND PITTSBURGH PENNSYLVANIA. HOME TO A COMBINED 38,000 NONPROFITS IN JUST THE SURROUNDING AREA ALONE. PITTSBURGH IS HOME TO MY LAST TWO STARTUP COMPANIES, RENT JUNGLE AN APARTMENT SEARCH ENGINE AND A SOCIAL MEDIA MANAGEMENT AGENCY WHICH SERVED MANY NONPROFITS ALSO SOLD IN 2017. AS A TEAM WE HAVE A COMBINED 60 YEARS OF EXPERIENCE FROM PLACES LIKE McKINSEY AND COMPANY, THE UNITED WAY AND OTHER INSTITUTIONS LIKE HARVARD BUSINESS SCHOOL. SO WHETHER YOU ARE A CORPORATION LOOKING TO QUANTIFY YOUR COMMUNITY IMPACT OR YOU ARE A FOUNDATION LOOKING TO ADD TO THE CAPACITY OF YOUR AGENCIES OR YOU ARE A NONPROFIT LOOKING FOR SEAMLESS VOLUNTEER MANAGEMENT IN A WAY TO AUTOMATICALLY CONVERT YOUR VOLUNTEERS TO DONORS GO VISIT OUR WEBSITE. LET’S WORK TOGETHER AND MAKE A GREATER IMPACT IN OUR COMMUNITIES. THANK YOU.>>JUDGES FIRST QUESTION.>>YOUR CUSTOMER BASE IS NOTORIOUSLY DISPARATE, FRACTURED AND SLOW, CULTURALLY THEY DO NOT MAKE DECISIONS QUICKLY SO WHAT IS THE SALES PROCESS LIKE?>>WE HAVE BEEN SURPRISED BY THAT. IN FIVE MONTHS WE WERE ABLE TO SERVE 34 CLIENTS WHICH IS PRETTY QUICK, ONE OF THE BENEFITS IS NONPROFITS ARE NOT COMPETITIVE SO THEY ARE ABLE TO SHARE AND HAPPY TO SHARE WITH EACH OTHER WHAT WORKS SO THAT HAS BEEN PART OF OUR GROWTH. YOU ARE RIGHT AT TIMES MAYBE WE MISSED THE BUDGET SEASON FOR SOME NONPROFITS BUT THAT IS THE SAME FOR ANY OTHER INDUSTRY BUT I THINK WE DO HAVE BENEFITS IN TERMS OF HOW VIRAL THE NETWORK IS.>>I SAW A GOOD EXPERIENCE FOR THE VOLUNTEER CHECKING IN, BUT WHAT ABOUT FOR THE ORGANIZATION TRYING TO FIGURE OUT FOR THIS EVENT ANY VOLUNTEERS HOW MANY DO I NEED AND WHO IS VOLUNTEERING, CANADA VOLUNTEER MANAGEMENT SIDE? >>ABSOLUTELY. THIS IS ONLY THE TIP OF THE ICEBERG. THERE ARE A NUMBER OF FEATURES WE WANT TO BUILD FOR THE NONPROFITS INCLUDED SCHEDULING, THE ABILITY TO CURE THE EXPERIENCE BUT TO YOUR POINT ALSO TO USE THE DATA TO SAY LAST TIME YOU HAD THIS MANY VOLUNTEERS BUT IN ACTUALITY IT LOOKS LIKE YOU WERE SHORT BY SO MANY VOLUNTEERS IN THESE ACTIVITIES SO THAT IS ONE OF THE MAIN REASONS WHY WE TRACK ACTIVITIES, TO UNDERSTAND LATER ON FROM THE CAPACITY STANDPOINT WAS THAT ENOUGH?>>THERE ARE SEVERAL FEATURES WITHIN THIS PRODUCT SO IF WE WERE TO SPEAK TO ONE OF YOUR 34 CLIENTS WHAT WOULD THEY SAY ARE THE FEATURES THAT ARE REALLY ADDRESSING THE PAIN POINTS? >>SO WE WERE NOT ABLE TO SHOW SOME OF THE OTHER FEATURES LIKE THE KIOSK MODE AND THE ABILITY FOR ADMINISTRATORS TO CHECK IN VOLUNTEERS ON THEIR OWN PHONES BUT ALL OF THAT AS A COMBINED SUITE OF TOOLS ALLOWS FOR THE NONPROFITS TO USE THIS IN ANY SITUATION SO THEY DON’T HAVE TO RESORT BACK TO PEN AND PAPER. THAT IS ONE OF THE DRAWBACKS OF OTHER PLATFORMS, IF YOU ONLY HAVE A MOBILE APP YOU HAVE A LOT OF VOLUNTEERS THAT DON’T WANT TO USE THAT SO WE WANT TO MAKE SURE WE ARE ABLE TO SUPPORT THE FULL ECOSYSTEM. >>A QUICK FOLLOW-UP, SO WHEN THEY ARE GOING INTO THE APP WHERE THEY MAINLY SPENDING THEIR TIME? WITHIN THOSE FEATURES WHERE DO THEY SPEND THEIR TIME?>>FOR THE VOLUNTEERS THEY DON’T SPEND A TON OF TIME, YOU CHECK-IN AND CHECKOUT, LEAVE YOUR REFLECTION AND THAT’S ABOUT IT FOR NOW. IN THE FUTURE WE WANT TO BUILD CURATED DISCOVERY WHICH WILL ALLOW FOR CONSUMERS TO SPEND MORE TIME ON THE APP, MOST ADMINISTRATORS WHERE THEY SPEND TIME IS ON THE WEB-BASED DASHBOARD SO THAT HAS ALL THE DATA YOU CAN SEE IN YOU CAN MANAGE THE VOLUNTEER STAFF.>>CAN YOU TELL ME MORE ABOUT HOW THE VOLUNTEERS DISCOVER THE SERVICE TO BEGIN WITH? IS IT THROUGH THE ORGANIZATION? A LOT OF THESE NONPROFITS HAVE CHALLENGES IN MANAGING DAY-TO- DAY RECRUITING VOLUNTEERS TO BEGIN WITH SO IS THERE ANYTHING YOU DO TO HELP THEM RECRUIT USERS AND VOLUNTEERS?>> VOLUNTEERS TODAY DISCOVER THE APP LARGELY THROUGH THE PARTNER NONPROFITS THAT WILL SAY CAN YOU ADOPT THE SYSTEM AS A NEW WAY TO TRACK ACTIVITIES AND HOURS? IN THE FUTURE WE THINK THIS COULD BECOME A NETWORK-BASED EFFECTIVE BUSINESS IN THAT ONE OF THE KEY FEATURES WE HAVE IS YOU CAN USE CIVIC CHAMPS ACROSS DIFFERENT ORGANIZATIONS SO YOU DON’T HAVE TO HAVE YOUR APP FOR EVERY SINGLE NONPROFIT SO WHEN WE HAVE A LITTLE MORE DENSITY WITHIN THE MARKETS WE THINK THIS COULD BE AN INTERESTING TOOL FOR VOLUNTEERS TO DISCOVER PLACES TO VOLUNTEER AND TO ALSO ALLOW CLIENTS A BIGGER PLATFORM TO SORT OF RECRUIT FROM AS WELL.>>I SAW THE WAY YOU HOOKED UP THE DONATION TO CORPORATE MATCH. A LOT OF CORPORATIONS DONATE PER HOUR OF EMPLOYEE VOLUNTEERING. DO YOU HOOK INTO THAT AND VERIFY THAT THEY WERE THERE SO YOU CAN GATHER THE FUNDS? >>GREAT QUESTION. THE HONEST ANSWER IS NOT TODAY BUT WE ABSOLUTELY WANT TO DO THAT.>>CAN YOU TALK ABOUT HOW YOU CHARGE AND TO THE EARLIER QUESTION FROM DANA. BECAUSE OF THESE ACTIVITIES I IMAGINE IT COULD BE HARD TO GET COMPLIANCE IN TERMS OF TEACHING EVERYONE THIS IS HOW WE USED TO DO IT BUT WE WANT YOU TO SWITCH TO THE NEW SYSTEM AND THEN HOW MUCH EFFORT YOU HAVE TO PUT INTO TRAINING THE STAFF TO USE IT. >>SURE. SO FOR NOW WE TRY TO LEARN AS MUCH AS WE CAN BY DOING A LOT OF ON-SITE ON BOARDING. SO THAT IS PART OF THE PROCESS. I THINK FEATURES LIKE THE REMINDERS AND NOTIFICATIONS REALLY HELP BECAUSE THAT ALLOWS FOR US, AND THEN REMIND SOMEONE HEY, YOU SHOULD LOG IN AND CHECK IN SO THAT IS HOW WE HANDLE THE, THE ON BOARDING PIECE AND THE COMPLIANCE COMPONENTS.>>HOW DO YOU CHARGE?>>WE CHARGE A MONTHLY FEE, 25 $25-$450 PER MONTH IS THE RANGE TODAY AND IT IS BASED ON THE SIZE OF THE ORGANIZATION OR THE NUMBER OF VOLUNTEERS. >>ALL RIGHT GIVE IT UP FOR CIVIC CHAMPS. >>[ APPLAUSE ] NEXT STARTUP. T 4 PRESENTING NOW, T4. >>EVERY CONSULTING FIRM, EVERY INVESTMENT COMPANY, EVERY CORPORATION. NEEDS MARKET RESEARCH. IF YOU HAVE EVER HAD TO LOOK FOR IT LIKE I DID WHEN I WAS A CONSULTANT AT BAIN AND COMPANY YOU KNOW HOW PAINFUL THAT PROCESS IS. THE AVERAGE ANALYST SPENDS 19% OF THEIR DAY RESEARCHING. FOR EVERY FIVE THAT SHOW UP TO WORK, ONE SHOWS UP TO SEARCH. COMPANIES ARE PAYING ANALYSTS BILLIONS OF DOLLARS EVERY YEAR TO LOOK FOR MARKET RESEARCH. THE LAST MAJOR INNOVATION AND HOW WE LOOK FOR THIS TYPE OF DATA WAS GOOGLE, 20 YEARS AGO. WE NEED A BETTER WAY. INTRODUCING T4. A WEB PLATFORM THAT LETS ANALYSTS QUICKLY FIND COMPREHENSIVE INDUSTRY DATA. TELL T4 WHAT YOU ARE LOOKING FOR AND T4 WILL TELL YOU WHAT REPORTS CONTAIN THE DATA YOU NEED, WHETHER THEY COME FROM A PAID SOURCE OR FREE SOURCE LIKE THE CENSUS BUREAU. LET ME INTRODUCE YOU, THIS IS THE T4 UNIFIED INDUSTRY CLASSIFICATION SYSTEM A METHOD OF CLASSIFYING INDUSTRIES THAT IS 10 TIMES MORE GRANULAR THAN THE INDUSTRY STANDARD. TOM IS THE PROPRIETARY HUMAN LOOP INDEXING PROCESS. TOM INJURES WE AGGREGATE A COMPLETE SET OF MARKET RESEARCH WITHIN EACH INDUSTRY AND INDEX THE QUANTITATIVE DATA WITHIN EACH REPORT. LET’S TAKE THE EXAMPLE OF SARAH AN ANALYST AT A LEADING MANAGEMENT CONSULTING FIRM, SHE IS PREPARING AHEAD OF A CLIENT MEETING TOMORROW MORNING, SERI WILL BEGIN HER SEARCH ON GOOGLE WHICH LOOKS TO A BROAD SET OF HIGHLY IRRELEVANT SOURCES. SHE CAN LOOK AT MARKET RESEARCH AGGREGATORS LIKE MARKET RESEARCH ONLINE BUT THEY ONLY LOOKED THROUGH A SMALL SUBSET OF THE MARKET RESEARCH UNIVERSE. SARAH WILL SPEND HOURS LOOKING THROUGH THOUSANDS OF SEARCH RESULTS AND AS MANY AS A DOZEN PORTALS. THEN SARAH DISCOVERS T4. MOVED TO DEMO PLEASE. SARAH SUBSCRIBES TO THE CYBER SECURITY INDUSTRY COVERAGE, WHEN SHE OPENS T4 SARAH LANDS ON THE CYBER SECURITY DASHBOARD. HERE SHE CAN SEE INDUSTRY STATISTICS, RECOMMENDED SEARCHES AND TOP REPORTS RICH IN DATA. TO GAIN ADDITIONAL CONTEXT SHE CAN OPEN THE UICS TAXONOMY FOR THE FIRST TIME THE ANALYST CAN SEE A COMPREHENSIVE IN-DEPTH VIEW OF THE INDUSTRY, AND JASON SEES AND WHEN DATA IS AVAILABLE MARKET SIZE AND GROWTH IN A SINGLE VIEWING WINDOW. AS SARAH RETURNS TO THE DASHBOARD SHE BEGINS HER SEARCH TYPING WEB SECURITY MARKET SHARE. THE SMART ASSIST SEARCH WILL TRANSLATE THE QUERY INTO THE UICS FILTERS IN LESS THAN ONE SECOND THOUSANDS OF POTENTIAL SEARCH RESULTS INTO FOUR PAID AND ONE FREE REPORT THAT CONTAINS EXACTLY THE DATA THAT SARAH NEEDS. T4 TELLS SARAH WHICH REPORTS COME FROM TOP SOURCES AND SARAH CAN SEE WHICH PAGE NUMBER THE FREE DATA IS ON, WHAT NORMALLY TAKES HOURS, SARAH JUST DID IN 30 SECONDS. RETURN TO PRESENTATION PLEASE. THIS IS POSSIBLE BECAUSE UICS AND TOM ENABLE T4 TO COME PENSIVELY INDEX GRANULAR DATA THAT AI DOES NOT HAVE THE CAPABILITY TO PROCESS. IT IS NOT JUST FOR CONSULTANTS, WE HAVE INVESTORS, STRATEGIES, SALES AND MARKETING ANALYST WHO CAN ACCESS T4 THROUGH LICENSED CHARGING UP TO $2000 PER USER PER YEAR. 1/20 OF WHAT ANALYSTS ARE CURRENTLY PAID TO SEARCH EVERY SINGLE YEAR. INITIALLY WE ARE TARGETING THE 3.5 MILLION TECH SECTOR ANALYST REPRESENTING A $7 BILLION GLOBAL MARKET OPPORTUNITY. AS WE EXPAND INDUSTRY COVERAGE WE WILL SCALE TO THE $82 BILLION OPPORTUNITY ACROSS ALL SECTORS. OUR TEAM COMES FROM THESE LEADING ORGANIZATIONS. I HAVE LIVED AND BREATHED THE PAIN BEHIND FINDING INFORMATION THROUGHOUT MY PROFESSIONAL CAREER. OUR CTO HAS BEEN ARCHITECTING AND BUILDING PRODUCTS FROM THE GROUND UP FOR NEARLY A DECADE INCLUDING BUILDING HUMAN LOOP SOFTWARE FOR REPLACING THE HUBBLE TELESCOPE AND FOR SHARED ECONOMY MARKETPLACE PLATFORMS. SINCE LAUNCHING OUR FIRST PROTOTYPE FIVE MONTHS AGO WITH COVERAGE OF ONLY THE CYBER SECURITY AND EASE SPORTS INDUSTRIES WE HAVE TESTED THE PRODUCT WITH A DOZEN CYBER SECURITY AND EASE SPORTS TEAMS, FOR BILLION-DOLLAR PLUS HEDGE FUNDS AND PRIVATE EQUITY FUNDS AND TWO OF THE TOP FIVE MANAGEMENT CONSULTING FIRMS FORMING $2.7 BILLION OF MNA SAVING SEVEN MONTHS OF RESEARCH TIME AND RESULTING IN OUR FIRST PAID CUSTOMER. TODAY I AM EXCITED TO ANNOUNCE THAT T4 IS LAUNCHING OUR PUBLIC BETA WITH COVERAGE OF THESE TECH SECTOR INDUSTRIES. IF YOU ARE NOT CONSULTING, INVESTING, STRATEGY, SALES OR MARKETING AND YOU WANT TO SAVE HOURS OF RESEARCH EVERY SINGLE DAY GO TO OUR WEBSITE AND SIGN UP TODAY. THANK YOU.>>[ APPLAUSE ] >>QUESTION ABOUT BUDGET I LOVE THAT YOU’RE EQUATING THE COST SAVINGS HERE TO HOW MUCH FIRMS ARE SPENDING ON THEIR ANALYST THAT AS YOU PROBABLY KNOW THEY SPEND MONEY ON SUBSCRIPTIONS TO FORRESTER AND GARDNER. CAN YOU TELL ME MORE, ONE ON HOW THIS FITS IN WITH THE BUDGET THAT YOU SPEND ON THOSE REPORTING SERVICES AND THEN TWO A TECHNOLOGY QUESTION ABOUT HOW YOU GET ACCESS TO THOSE GARDENS. >>SURE, I WILL BE HAPPY TO TAKE THOSE QUESTIONS. THE FIRST QUESTION, WHICH WAS ABOUT THE MONEY. HOW DO THEY PAY. THE COST OF T4 IS A FRACTION OF WHAT THE TYPICAL FIRM PAYS FOR RESEARCH, A LOT OF THE CORPORATE PAY SEVERAL HUNDREDS OF THOUSANDS OF DOLLARS, SOMEONE LIKE BAIN OR McKENZIE THAT IS NEAR $100 MILLION. >>MY QUESTION IS THIS DOES NOT GET RID OF THAT SPEND THEY HAVE TO SUBSCRIBE AND THEN USE T4 ON TOP OF IT ?>>CORRECT, YES. CURRENTLY FOR EVERY DOLLAR THAT A FIRM IS SPENDING ON MARKET RESEARCH THERE SPENDING TWO DOLLARS TRYING TO FIND IT. WITH REGARDS TO THE SECOND QUESTION HOW DO WE GET THIS DATA, FOR THE PAID DATA IT IS EASY TO INDEX, OR FOR FREE DATA IT IS EASY, FOR THE PAID DATA WE INFER WHAT INFORMATION THERE IS BASED ON PUBLICLY AVAILABLE INFORMATION. WE HAVE TESTED ACCURACY WITH RESEARCHERS AT SOME OF THE TOP CONSULTING AND PRIVATE EQUITY FIRMS AND OFTENTIMES WE BEAT THOSE SEARCH PORTALS. >>IF I WAS READING WHAT YOU SAID ABOUT THE PRICING ACCURATELY IT IS PER ANALYST PRICING IS THAT RIGHT? HOW DO YOU AVOID THE SHARED LOGIN PROBLEM WHERE ALL FIVE OF US SHARE THE SAME LOGIN?>>THE PROBLEM WITH SHARED LOGIN DOES NOT REPLACE THE EXISTING PROBLEM WHERE A LOT OF THESE PEOPLE HAVE RESEARCHERS THEY CAN REACH OUT TO WITH A CENTRALIZED PERSON BUT ONE OF THE BIGGEST ISSUES IS THAT THERE IS A LONG TURNAROUND TIME. BY DISTRIBUTING THIS ACROSS MORE ANALYSTS YOU ARE REDUCING THE TURNAROUND TIME INCREASING THE TEMPO AT WHICH THE ORGANIZATION OR TEAM CAN RUN THEIR BUSINESS.>>HOW DO YOU THINK THE PAID RESEARCH SERVICES WILL VIEW YOU GUYS? DO THEY SEE YOU AS ADDITIVE BECAUSE YOU MAKE THEIR PRODUCT EASIER TO USE OR DO THEY SEE YOU AS A THREAT? IF SO, WHY? >>WE ARE ESSENTIALLY LEAD JEN FOR THEM, WE TELL YOU WHICH REPORTS CONTAIN THE DATA YOU NEED WHEN YOU SEARCH AND WE LINK YOU TO THE REPORT. IN THE FUTURE WE WOULD LIKE TO START CREATING PARTNERSHIPS WITH PUBLISHERS. WE THINK THERE IS POTENTIAL IN THE MARKETPLACE WHERE WE CAN RESELL SOME OF THE DATA SO WE THINK THERE IS POTENTIAL FOR THAT. >>DOING YOUR OWN RESEARCH WITH POTENTIAL CUSTOMERS, HOW HAVE YOU, I GUESS WHAT REPLIES HAVE YOU BEEN GETTING TO THEM AROUND THE NO AND WHAT REASONS HAVE THEY BEEN GIVING FOR THOSE?>>FOR THE ANALYST OR PUBLISHERS?>>BOTH WOULD BE HELPFUL. >>WITH REGARD TO THE ANALYSTS A LOT OF THE INITIAL NO WOULD BE WHEN THE ANALYST MIGHT SAY I ONLY HAVE FIVE OR 10 MINUTES PER DAY IN ORDER TO SEARCH FOR MARKET RESEARCH. WHEN WE DIG IN IT ACTUALLY TURNS OUT THERE SPENDING MORE TIME AND ONE OF THE BIG VALUE THINGS WE CAN OFFER IS IF YOU DO SPEND 10 MINUTES PER DAY WE CAN MAKE THAT 10 MINUTES THE EQUIVALENT OF FIVE HOURS OF RESEARCH AND THAT BEGINS TO RESONATE MORE BECAUSE THIS RESEARCH IS ESSENTIALLY INFORMING MILLIONS OF DOLLARS OF POTENTIAL DUE DILIGENCE PROCESS THEY ARE ABOUT TO ENGAGE WITH FOR EXAMPLE MNA. WE ARE ONLY BEGINNING TO ENGAGE WITH PUBLISHERS AND WE DON’T QUITE HAVE THE ANSWER YET.>>OF THE FIRMS THAT WOULD BE YOUR CUSTOMERS HOW MUCH DO THEY REALIZE THIS IS A PAIN POINT? WHAT THEY SAY YES THIS IS A HUGE DISASTER WE HAVE TO SOLVE OR HAVE YOU DISCOVERED SOMETHING THAT IS NOT REALLY OCCURRED? >>THIS WAS A PAIN I MYSELF FELT PREVIOUSLY AND BEFORE WE BEGAN DESIGNING THE PRODUCT WE SPOKE TO HUNDREDS OF PEOPLE ACROSS INDUSTRIES TO VALIDATE THIS TRULY IS A PAIN POINT ACROSS COMPANIES. WHAT WE DISCOVERED IS YES THIS IS A PAIN POINT AND WHEN WE SHOW SOMEBODY THE DEMO AND HOW QUICKLY THEY CAN FIND INFORMATION RELEVANT TO THEM THAT REALLY HITS HOME ON EVERY SINGLE DEMO THAT WE EVER SHOW.>>WHAT IS THE FEEDBACK LOOP TO THE HUMAN LOOP PRODUCT OR THE AI PRODUCT IN TERMS OF YOU ARE GETTING RESULTS AND SOME ARE RELEVANT AND SOME ARE NOT. HOW DO YOU MAKE THE PRODUCT GET BETTER OVER TIME?>>I’M HAPPY TO TAKE THAT. CURRENTLY THE HUMAN LOOP PROCESS IS IN THE BACK END INDEXING SIDE, ON THE FRONT END WE SHOW YOU HOW WE INDEX THE RESULTS, WHAT WE ALLOW USERS TO DO IS TO REACH OUT TO THE RESEARCH TEAM IN CASE THEY ARE STRUGGLING TO FIND INFORMATION OR IF THEY FIND SOMETHING ERRONEOUS AND THEN WE TAKE ACTION. VERY SIMILAR TO WHAT PITCH BOOK DOES FOR EXAMPLE. >>HOW ABOUT THE SECTORS? YOU HAD NETWORKING AND DATA CENTERS AND ELECTRONIC SPORTS AND A FEW OTHERS HOW DO YOU ADD OR DECIDE WHICH SECTORS TO ADD NEXT AND HOW LONG DOES IT TAKE TO ADD?>>WE DECIDE WHAT SECTORS TO ADD BASED ON CUSTOMER DEMAND AND WHERE WE SEE THE MOST ACTIVITY. SO WE DECIDED TO DO THE TECH SECTOR FIRST WHICH WE WILL COMPLETE NEXT YEAR BECAUSE THAT IS WHERE WE SAW THE MOST ACTIVITY AND THAT IS WHERE CUSTOMERS WANTED THEIR PRODUCTS. >>ONE MORE ROUND OF APPLAUSE FOR T4. >>[ APPLAUSE ]>>GOOD. NEXT UP WE HAVE PRESENTING FOR ORBIT FAB. COME ON OUT.>>EXCELLENT TRANSPORT SOLUTION BECAUSE YOU CAN DRIVE AN ALMOST UNLIMITED DISTANCE WITH THEM BECAUSE THERE IS A GLOBAL NETWORK FOR DISTRIBUTING PROPELLANT OF FUEL, IMAGINE IF THE NETWORK DID NOT EXIST AND YOU HAD TO TAKE AROUND ALL THE FOOL FUEL YOU WOULD NEVER NEED. DAD FEEL WOULD EXTEND MAYBE 100 YARDS DOWN THAT IS A LOT, IT IS IMPOSSIBLE TO THINK ABOUT THROWING AWAY A CAR AFTER IT HAS USED UP ITS FIRST TANK OF GAS BUT THAT IS THE REALITY WE LIVE WITH IN THE SPACE INDUSTRY TODAY. I HAVE LIVED THIS FRUSTRATION PERSONALLY. A COMPANY I SET UP IN 2011 WE TRY TO PURCHASE THE A IMPORTED SATELLITE WHICH COST $400 MILLION TO BUILD AND SHOULD’VE BROUGHT IN $6 BILLION IN REVENUE BUT THERE WAS A GLITCH WITH THE LAUNCH VEHICLE AND WAS PUT IN THE WRONG ORBIT AND HE DID NOT HAVE ENOUGH FUEL FOR US TO TAKE IT WHERE WE NEEDED BECAUSE WE COULD NOT GET ANY MORE FUEL WE HAD TO DESTROY THE SATELLITE TO AVOID IT BECOMING DANGEROUS DEBRIS. THIS IS NOT AN ISOLATED INCIDENT THIS HAPPENS ALL THE TIME. IN THE LAST DECADE ALMOST 200 SATELLITES WORTH ABOUT SORRY $100 BILLION HAVE HAD TO BE DESTROYED BECAUSE THEY HAVE RUN OUT OF FUEL. NOW WE HAVE THE OPPORTUNITY TO RECOVER BILLIONS OF DOLLARS OF LOST REVENUE. I AM THE CEO OF ORBIT FAB WE ARE BUILDING GAS STATIONS IN SPACE. I HAVE SPENT 22 YEARS IN THE SPACE INDUSTRY , I HAVE BUILT A DOZEN SATELLITES SEVERAL SUCCESSFUL PRODUCTS AND THIS IS MY FOURTH STARTUP COMPANY. I HAVE LIVED WITH THE FRUSTRATION OF HAVING ONLY ONE TANK OF GAS FOR FAR TOO LONG. IT IS TIME TO STOP THROWING SATELLITES AWAY. HERE IS WHAT WE DO, WE BUILT TANKS, WE PUT THEM ON ANY AVAILABLE LAUNCH VEHICLE SO WE GET THE BEST DEAL PUTTING THEM IN SPACE, IN SPACE WE MANAGE THE LOGISTICS AND AUTO MECHANICS AND DELIVER THE RIGHT FUEL TO CUSTOMERS WHEN THEY NEED IT, CUSTOMERS CAN SAVE 50% ON THE CAPITAL EXPENDITURE AND WE TAKE HOME GROSS MARGINS OF 90%. YOU MAY ASK WHY HAS THIS NOT BEEN DONE? THERE IS A CATCH 22. NO SYSTEM EXISTS FOR SAFELY AND RELIABLY FUELING A SATELLITE IN SPACE. SO WE SET OUT TO SOLVE THAT PROBLEM FIRST. FAMOUS SCIENCE FICTION AUTHOR ONCE SAID WHEN YOU GET TO LOW EARTH ORBIT YOU’RE HALFWAY TO ANYWHERE IN THE SOLAR SYSTEM SO WE LIKE TO THINK WHAT WE BUILD IS THE KEY TO THE SOLAR SYSTEM, THIS IS A GAS CAP. THIS FUELING PORT ALLOWS SATELLITES TO BE REFUELED SAFELY AND RELIABLY IN ORBIT, WHEN YOU LOOK AT THE FLUIDS THAT ARE FLOWING IN ORBIT GRAVITY DOES NOT TAKE THEM AWAY SO THE SURFACE TENSION AND OTHER EFFECTS ARE COMPLICATING HOW FLUIDS BEHAVE, WE SOLVED THAT PROBLEM AND MANY OTHERS SO BACK TO THE PRESENTATION. WHAT YOU CAN SEE HERE IS THE FUELING PORT AND AN ACTIVE HALF THAT ALLOWS US TO CONNECT SO WE HAVE DEVELOPED THESE AND JEREMY HERE IN THE DEMONSTRATION IS SHOWING THE ACTIVE HALF, THE ROBOTIC ARMS ON THIS WITH THE SMALL ARMS ON THE SIDE CLOSE AROUND THE FUELING PORT GIVING IT ALIGNMENT TOLERANCE A LOT OF SELF ALIGNMENT SO NASA HAS BEEN RESEARCHING THIS PROBLEM AND THEY HAVE DEVELOPED A GOOD SOLUTION WHICH ARE SHOES WITH EXPENSIVE COMPLEX ROBOTS THAT LINE UP THE PORTS TO CONNECT THEM BUT WE SEE A FUTURE WHICH IS A BUSTLING SPACE ECONOMY WERE SATELLITES CAN COME AND TALK AND APART WITHOUT THE NEED FOR VERY EXPENSIVE ROBOTIC GAS STATION ATTENDANTS. SO IT WORKS BY COMING INTO PROXIMITY OF THE SATELLITE, THE ARMS CLOSE AND YOU CAN TRANSFER HIGH PRESSURE PROPELLANT, WHEN THE TRANSFER IS DONE THE SPACECRAFT IS RELEASED, IT GOES OFF TO ORBIT WHERE IT CAN MAKE MORE MONEY FOR ITS OWNERS. BACK TO THE PRESENTATION. THIS FUELING PORT HAS BEEN BUILT AT A SMALL SIZE, A SMALL WEIGHT AND COST, THE SAME EXACTLY AS THE FIELD PORTS THEY CURRENTLY USE TO FILL UP SATELLITES ON THE GROUND WITH THEIR FIRST TANK OF GAS BUT THIS ONE CAN BE REFUELED. WE ARE GETTING RAPID CUSTOMER ADOPTION. WE HAVE ALREADY FLOWN THESE TO THE INTERNATIONAL SPACE STATION, A LOT OF THESE TECHNOLOGIES SO HERE THERE ARE TWO TESTBEDS WE TRANSFERRED TO TEST THE PUMPS AND THE VALVES WITH WATER. THOSE WENT UP FULL OF WATER AND CAME BACK TO US JUST LAST WEEK EMPTY. THE UNIT YOU SEE HERE IS THE SAME UNIT ON THE INTERNATIONAL SPACE STATION JUST WEEKS AGO. IN CASE YOU THINK THIS IS A SCIENCE EXPERIMENT, WE WORK WITH 20 COMPANIES TO DEVELOP A STANDARD FUELING PORT. THEY ARE LOOKING FOR A FUELING PORT. WE WILL BE SHIPPING TO THE NEXT FEW WEEKS 10 FUELING PORTS. WE HAVE CONTRACTS WITH THE U.S. AIR FORCE AND THE JAPANESE CONGLOMERATE IN PARTNERSHIP WITH LOCKHEED MARTIN AND MANY OTHER DEALS. THE TEAM PUT THIS TOGETHER, YOU’VE HURT MY BACK ON, MY LAST BACKGROUND WAS BUILDING SMALL THRUSTERS TO GO INTO SATELLITES. THAT WAS ACQUIRED LAST DECEMBER. JEREMY, MY COFOUNDER, HE HAS AN INTERNATIONAL BUSINESS BACKGROUND AND IS THE VICE CHAIR AT AN INDUSTRY ASSOCIATION BACKED BY DARPA WORKING TO STANDARDIZE SATELLITES. AND MY FRIEND JAMES HAS FIVE PAYLOADS ON THE SPACE STATION AND BUILT THREE SALADS AND HE BUILT OUR HARDWARE FOR THE SPACE STATION IN ONLY 4 1/2 MONTHS. >>WRAP IT UP. >>ORBITFAB IS BUILDING THE NEXT LAYER OF INFRASTRUCTURE FOR THE SPACE INDUSTRY. IF YOUR COMPANIES ARE BUILDING SATELLITES, COME AND TALK TO US ABOUT THE FUTURE. [ APPLAUSE ] >>I WOULD LIKE TO SHARE THE FUELING PORT. >>90% GROSS MARGINS ARE IMPRESSIVE BUT WITH ANY HARDWARE BUSINESS, PARTICULARLY IN SPACE, I WOULD’VE THOUGHT THIS WOULD BE PRETTY CAPITAL INSENSITIVE. CAN YOU TELL ME MORE ABOUT THE COST AND THE CAPITAL FUNDRAISING PLANS IN THE NEXT FEW YEARS? >>I’M GLAD YOU ASKED ABOUT THAT. BECAUSE OF MY EXPERIENCE, I KNOW WHERE A LOT OF INEFFICIENCIES ARE SO I’VE BEEN ABLE TO FIND WAYS TO DO THIS VERY CHEAPLY. THE FLIGHTS TO THE SPACE STATION WERE COVERED BY THE INTERNATIONAL SPACE STATION NATIONAL LAB, A SHOUT OUT TO CASES FOR ANYONE WHO KNOWS THEM AND THE ACTUAL TIME WAS PART OF THAT. THEY HELP AMERICAN INDUSTRY TO COMMERCIALIZE SPACE IN A REALLY BIG WAY. SO THAT IS ONE OF THE WAYS THAT WE HAVE BEEN ABLE TO DO THIS. OBSESSED WITH THE MINIMUM VIABLE PRODUCT TO BRING TO THE SPACE AGENCY, AT OUR PRODUCT IS 2 TO 3 ORDERS OF MAGNITUDE LOWER THAN WHAT OTHERS CONSIDERED NECESSARY TO GET INTO THE BUSINESS. >>WHICH IS HOW MUCH, ROUGHLY? >>WE EXPECT ABOUT $20 MILLION OF CAPITAL TOTAL TO PHILLY BUILDOUT THE SYSTEM. >>IS THAT $20 MILLION THE FIRST WORKING SYSTEM AND THEN YOU NEED MORE OR IS THAT ALL YOU NEED? >>THAT IS TO GET THE POSITIVE CASH FLOW. SO WE WOULD CONTINUE TO BUILD OUT THE SYSTEM AS CUSTOMER DEMAND GROWS BUT THAT IS THE INITIAL SYSTEM. >>ARE YOU SELLING THESE TWO PEOPLE WHO ARE THEN BRINGING THEM TO THE SATELLITES? OR ARE YOU RESPONSIBLE FOR GETTING THESE TO THE SATELLITES? >>THIS IS A SYSTEM THAT WOULD BE ADOPTED BY THE SATELLITES AND THEN IT WOULD BE LAUNCHED INTO ORBIT. WE WORK WITH A LOT OF CUSTOMERS OPERATING EFFECTIVELY TOW TRUCKS, SERVICING VEHICLES THAT CAN GO AND DEAL WITH THE LEGACY SYSTEM. THEY’VE DEVELOPED COMPLEX ROBOTICS AND EVERYTHING NEEDED FOR A SYSTEM THAT WASN’T DESIGNED TO BE SERVICED. OUR SYSTEM IS DESIGNED TO SERVICE THEM SO THE TOW TRUCK CAN BE REFUELED AND DO A LOT MORE WORK. ALSO FUTURE SATELLITES BEING EQUIPPED WITH THESE SYSTEMS CAN THEN DIRECTLY GET REFUELED. >>SO YOUR SYSTEM CAN WORK WITH LEGACY SATELLITES? >>NOT DIRECTLY, BUT THROUGH THE SATELLITE SERVICING COMPANIES. AND THOSE COMPANIES ARE BUILDING THESE TOW TRUCKS LIKE PURCHASING A NEW TOW TRUCK, THEY CAN TOW THREE CARS, BUT THEY’VE ONLY GOT ONE TANK OF GAS, THEY HAVE TO THROW THE TOW TRUCK AWAY AND BUY ANOTHER TOW TRUCK. WORKING WITH US, WE CAN DELIVER FUEL AND THEY CAN TOW TENS OR HUNDREDS AND IT CHANGES THE ECONOMICS. THOSE 30 COMPANIES WORKING TO BRING IT TO MARKET ARE KEEN TO WORK WITH US AND WE HAVE A LOT OF DEALS. >>HOW DO YOU THINK ABOUT I GUESS THE ERGO THE ECONOMICS OF IT, $20 MILLION TO CREATE THE PRODUCT, HE SAID MAYBE TO GET THE CASH FLOW BREAK EVEN, BUT PER LAUNCH ECONOMICS, HOW MUCH DOES IT COST TO PREPARE THE ONE SYSTEM, GET IT INTO ORBIT, REFILL, AND THEN DO WHAT YOU DO WITH IT? >>THAT IS A VERY IMPORTANT PART OF THE BUSINESS MODEL. BECAUSE WE KNOW THE LAUNCH COMPANIES AND WE CAN WORK DEALS WITH THEM, WE ALSO HAVE A PAYLOAD THAT IS RISK TOLERANT AND SCHEDULE TOLERANT. SO WE CAN BE A PAYLOAD THAT FITS IN WHEN THERE IS AN OPPORTUNITY. AND THAT WAY, WE CAN BE VERY LOW-COST TO GETTING FUELED ORBIT WHERE AS THE CUSTOMERS WITH SATELLITES THAT PUT FUEL INSIDE THE SATELLITE, THEY PRAY, THEY ARE PLAYING THE PREMIUM RATE TO LAUNCH ON TIME WHEN THEY NEED. WE ARE ABLE TO GET GOOD DEALS WITH LAUNCH COMPANIES GIVING US A LEG UP. >>YOU CAN THINK OF US AS THIRD CLASS MAIL. >>[ LAUGHTER ] SO CAN YOU TALK A LITTLE BIT MORE ABOUT THE CAPITAL REQUIREMENTS IN TERMS OF IS THERE A PROOF OF CONCEPT OR SOMETHING YOU DO WITH LESS CAPITAL THAT WILL PROVE TO FOLKS THAT THEY SHOULD GIVE YOU THE REST OF IT? OR DO YOU NEED ALL AT ONE TIME? >>ABSOLUTELY, IT IS DEFINITELY STAGED. YOU CAN SEE THE UNIT WE SENT TO THE INTERNATIONAL SPACE STATION, THE PLUMBING, THE VALVES AND TANKS, EXACTLY THE SAME AS WHAT WE WILL HAVE ON THE MINIMUM VIABLE PRODUCT TANKER. WE TAKE THE STATE OF THE SAME SIZE AND PUT SOLAR ARRAYS AND AVIONICS PACKAGE AND THIS BECOMES THE FIRST OPERATIONAL TANKER AND WE EXPECT TO LAUNCH IT EARLIER NEXT YEAR. >>HOW MUCH DO YOU NEED TO GET TO THAT MILESTONE? >>WE HAVE JUST SIGNED A C GROUND SHOUT OUT TO MIKE ONE VENTURES AND THAT IS $3 MILLION. THAT WILL COVER THE LAUNCH OF THE FIRST TANKER. >>YOU THINK THE PROOF THAT WILL ENABLE YOU TO GET OTHER CUSTOMERS TO SAY THEY ARE IN? >>THAT’S ABSOLUTELY RIGHT. WE HAVE CUSTOMERS LINING UP. BY THE END OF NEXT YEAR, WE INTEND TO DO A FULL END-TO-END FUEL DEMONSTRATION WITH IN PARTNERSHIP WITH ONE OR TWO CUSTOMERS AND THAT WILL OPEN THE FLOODGATES TO BE ABLE TO SIGN CONTRACTS. >>THE PICTURE SHOWED THE BOX OF WATER INSIDE THE STATION, BUT I ASSUME THIS IS GOING TO LIVE OUTSIDE? SO I GUESS, HAVE YOU TESTED TO MAKE SURE THE WATER WON’T FREEZE? >>A REALLY GOOD QUESTION. SO HAVING A LOT OF EXPERIENCE IN THE INDUSTRY, WE’VE DONE THE DESIGNS TO MAKE SURE THAT THE THERMAL AND STRESS IN THE VACUUM ARE ALL GOING TO BE ACCEPTABLE WITH THIS DESIGN AND LIKE I SAID, WE NEED TO ADD SOME SYSTEMS TO THIS, THE SOLAR ARRAYS AND AVIONICS BEFORE IT CAN BE A FREE FLYING TANKER. WE’VE DONE THOSE DESIGNS AND STARTED DOING THE TESTING AND THAT IS ALL PLANNED FOR THE NEXT 6 TO 9 MONTHS. >>A REALLY QUICK FINAL QUESTION. ALL RIGHT, GIVE IT UP FOR ORBITFAB. [ APPLAUSE ] >>I BELIEVE THE GAS IS OVER THERE SO WE DON’T LOSE IT. THAT CONCLUDES THE THIRD SESSION OF THE STARTUP BATTLEFIELD. THE JUDGES WILL FOLLOW ME BACKSTAGE AND THEY WILL HELP CHOOSE FINALISTS WHO WILL BE ANNOUNCED TONIGHT. BEFORE THAT, LET’S GIVE IT UP ONE MORE TIME FOR AWESOME JUDGES. [ APPLAUSE ] >>AS COMPANIES TRANSITION TO USING, MORE APIS ARE CREATED ACROSS THE ORGANIZATION. WITH THIS INCREASE, IT CAN BECOME MORE CHALLENGING FOR DEVELOPERS TO USE THE INTERNAL APIS AND USE THEM. THAT IS WHERE RAPID API FOR TEAMS CAN HELP. RAPID API FOR TEAMS ENABLES DEVELOPING TEAMS TO PUBLISH INTERNAL APIS INTO A PRIVATE WORKSPACE. THEY CAN FIND ANY INTERNAL API AND VIEW THE DOCUMENT INTESTATE AND CONNECT DIRECTLY OR COLLABORATE AND SHARE INFORMATION ABOUT THE API RIGHT IN RAPID API. TEAM MEMBERS CAN SUBSCRIBE TO ANY PUBLIC API AVAILABLE ON THE RAPID API MARKETPLACE AND THE ENTIRE TEAM CAN SEE AND USE THE SUBSCRIPTION. THIS WAY YOU ONLY PAY ONCE FOR ANY API YOUR TEAM USES. RAPID API FOR TEAMS MAKES IT EASIER TO SHARE AND COLLABORATE ON APIS. IT STARTED TODAY ON RAPID API.COM/TEAMS. [ MUSIC ] >>WHY DID THEY COME TO THIS WORKSHOP, TO LEARN. >>I WANT TO BE WHERE WE ASK QUESTIONS LIKE WHY, AND THE BIG QUESTION I ASK IS WHAT IF? IT IS A DIFFERENT WAY OF THINKING AT STANFORD THAN IT IS AT ANY OTHER UNIVERSITY IN THE WORLD. >>I REALIZED I WAS GETTING STALE, SO I SAID, YOU KNOW WHAT, IT’S TIME FOR ME TO MOVE ON AND LOOK FOR GREATER THINGS. AND HAVE MORE IMPACT. [ MUSIC ] >>AT LOCKHEED MARTIN, WE ARE ON A MISSION, YOUR MISSION. WHEN MILLIONS OF PEOPLE ARE COUNTING ON YOU, YOU CAN COUNT ON US TO BUILD THE IMPOSSIBLE, TO INVENT THE INCONCEIVABLE, AND SOLVE EVERY PROBLEM WITH SPEED AND RELIABILITY. EVERY MISSION IS AN EXPEDITION OF THE GREATEST IMPORTANCE BOTH TO YOU AND TO US. >>WHAT TECHNOLOGY DO YOU THINK WILL BEST HELP US DEAL WITH NATURAL DISASTERS? GO TO THE IBM BOOTH NUMBER THE F 1 TO PICK YOUR FAVORITE FROM THE CALL FOR CODE FINALISTS. OVER 5000 PEOPLE HAVE ALREADY VOTED. >>LADIES AND GENTLE MAN, PLEASE WELCOME BACK TECH CRUNCH MANAGING EDITOR AND DISRUPT Mc JORDAN KRUK >>WHAT’S UP? DID ANYBODY HAVE A GOOD LUNCH? THANK YOU. YEAH? ARE WE GOOD? CAN I GET SOME ENTHUSIASM IN THE ROOM? COME ON. >>YES. WE ARE HALFWAY. EXACTLY, THROUGH THE SHOW. BUT I DON’T WANT YOU GUYS TO FRET, BECAUSE WE HAVE AMAZING THINGS IN STORE. ONE OF WHICH IS COMING UP RIGHT NOW ACTUALLY ON THE EXTRA CRUNCH STAGE. I JUST ALWAYS PANIC THAT MY FLY IS DOWN. HOW DO I EXIT, AND IS GOING TO BREEZE BY. HOW DO I EXIT AND WHAT HAPPENS NEXT? THAT WILL BE WITH JUSTIN KOHN, COFOUNDER AND CEO OF ATRIUM. PARTNER AT SEQUOIA CAPITAL AND MIKE MARQUEZ WHO IS THE COFOUNDER OF CODE ADVISORS. THAT WILL BE A HOT ONE. IF YOU WANT TO CHECK THAT OUT, NOT NOW IS THE TIME TO DO IT. AND FOR THOSE OF US WHO WANT TO STAY SAFE AND SECURE AND PRIVATE, I WILL BRING UP OUR NEXT GUEST. PLEASE WELCOME TO THE STAGE, ADMIRAL MIKE ROGERS FROM THE FORMER DIRECTOR OF NATIONAL SECURITY AGENCY AND THE COFOUNDER AND CEO OF TEAM 8 AS WELL AS YOUR MODERATOR, ZACH WHITAKER. A WARM WELCOME, PLEASE. [ APPLAUSE ] [ MUSIC ] >>OKAY, WE HAVE THIS LOWERED ONE. GOOD AFTERNOON. I HOPE LUNCH WAS GOOD. I’M REALLY EXCITED ABOUT THIS PANEL. MIKE, YOU HAVE SPENT A VERY LONG >>I WROTE NOTES. WE GOT A VERY LONG CAREER, I SPENT TWO DECADES, YOU SPENT TWO DECADES IN THE NAVY IN 5 YEARS OF AN ESSAY. >>I SPENT ALMOST 4 DECADES IN THE NAVY. >>AND YOU SERVED TO PRESIDENTS, YOU OVERSAW THE NSA DURING THE PERIOD OF HEIGHTENED TENSIONS BETWEEN THE U.S. AND SOME OF THE OTHER NATIONS IN THE WORLD. YOU ARE NOW A PRIVATE CITIZEN AND YOU ARE WORKING FOR TEAM 8 FOUNDED BY HIM SITTING NEXT TO YOU, WHO USED TO RUN ISRAEL’S VERSION OF THE NSA. I’M DELIGHTED TO HAVE YOU BOTH HERE. IT’S BEEN A YEAR SINCE HE RETIRED FROM THE AT ESSAY AND YOU BEGUN WORK FOR TEAM 8 STARTUP STUDIO AND FOR THOSE OF YOU THAT DON’T KNOW, BUT YOU MUST, YOU SHOULD. YOU MUST’VE HAD A LOT OF OPTIONS POST GOVERNMENT, WHY DID YOU CHOOSE TEAM 8? >>FOR ME, NUMBER ONE, WAS INTERESTED JUST AS I WAS IN THE MILITARY, THAT’S PROBABLY WHAT ATTRACTED ME. I WAS INTERESTED IN THE MISSION I CARED ABOUT AND I WASN’T INTERESTED IN DOING SOMETHING JUST ABOUT MONEY. I WAS INTERESTED IN DOING SOMETHING I THOUGHT COULD GENERATE BETTER OUTCOMES AND CYBER SECURITY WAS AN AREA, IT WASN’T JUST WHAT I DID IN THE GOVERNMENT, IT WAS SOMETHING I BELIEVE IN AND I WANT TO BE INVOLVED IN THINGS THAT I THOUGHT COULD IMPROVE CYBER SECURITY IN THE PRIVATE SECTOR AND ON A GLOBAL BASIS, NOT JUST HERE IN THE NINE STATES. I LOVE THE PEOPLE. I LOVE THE MODEL AND THE CHANCE TO WORK TOGETHER. WE DO NOT SERVE OUR ASPECT OF JOBS, HE WAS THE LEADER OF THE 8200, THE NSA EQUIVALENT IN ISRAEL AND MAY, THE UNIT 8200 IN THE WEST, THE NSA. WE DIDN’T OVERLAP BUT I KNEW HIM BY REPUTATION. BECAUSE IT IS A SMALL WORLD OUT THERE IN THIS AREA, AND I JUST THOUGHT, I WOULD LOVE TO WORK WITH HIM. >>SO WHAT WAS THE DRIVING FORCE BEHIND WORKING FOR TEAM 8? WAS IT THE STARTUPS OF THE RELATIONSHIP THAT YOU HAD? >>IT IS NUMBER ONE, THE MODEL, THE IDEA THAT TEAM 8 IS AN ORGANIZATION THAT WAS THE FOCUS ON HARD CYBER CYBER, CYBER SECURITY PROBLEMS THAT IF WE CAN SOLVE THEM, IT WILL MAKE A SIGNIFICANT DIFFERENCE. NUMBER TWO, I LIKE THE FACT THAT, BECAUSE THIS IS SOMETHING I USED TO SAY IN GOVERNMENT. I WOULD SAY LOOK, IT’S GREAT TO DEVELOP TECHNOLOGY, BUT IF WE CAN ACTUALLY APPLY THIS IN A MEANINGFUL WAY, WE’RE SPENDING A LOT OF MONEY FOR NO PURPOSE. IT IS ABOUT HOW DO WE GET TO OUTCOMES AND THE OUTCOME ISN’T JUST THE DEVELOPMENT OF THE TECHNOLOGY, IT IS THE APPLICATION OF THIS. AND I LIKE THE FACT THAT THE TEAM 8 MODEL WAS ALL ABOUT HEY, WE CREATE COMPANIES TO ACTUALLY HELP THIS TECHNOLOGY, THIS APPROACH THAT WE CREATE, WE THEN ACTUALLY BUILD THE STRUCTURE TO ACTUALLY IMPLEMENT IT AND EXECUTE IT. I LIKE THAT IDEA. >>SUE TO GET A LITTLE BIT OF FLAK FROM SOME OF YOUR FORMER NSA COLLEAGUES FOR JOINING OSTENSIBLY A FOREIGN FIRM, WHAT DO YOU SAY TO THE CRITICISM? >>NUMBER ONE, I WOULD ARGUE, FULLY COMPLIANT WITH THE LAW. ANYTHING YOU DO WITH IT, I HAD TO GET PERMISSION AHEAD OF TIME SO I WENT TO THE GOVERNMENT AND I SAID HEY, LOOK, THIS IS AN OPTION FOR ME, I WANT TO MAKE SURE THERE ARE NO ISSUES SO I GOT IT REVIEWED. SECONDLY, MY COMMENT WOULD BE, SO LET ME UNDERSTAND THIS, YOU HAVE A PROBLEM WITH ME WORKING WITH ONE OF OUR CLOSEST ALLIES IN THE WORLD? THAT IS NOT THE WORLD I LIVE IN, MY ATTITUDE IS IF WE CAN’T THINK MORE GLOBALLY AND IF WE CAN’T WORK WITH PARTNERS, WE CANNOT SOLVE PROBLEMS. IF YOU THINK THE ANSWER IS WELL, AMERICA AND CYBER SECURITY, THE UNITED STATES IS JUST GOING TO DO IT ALL BY ITSELF, THAT IS, THAT HAS NOT BEEN MY EXPERIENCE. I FIND THAT TO BE A VERY NARROW VIEWPOINT. >>FOR THOSE WHO DON’T KNOW, OBVIOUSLY THE RELATIONSHIP WITH THE U.S. AND ISRAEL IN TERMS OF COLLABORATION AND INTELLIGENCE SHARING IS VERY CLOSE. >>HOW DID YOU MEET? >>>>THE ADMIRAL IS A GOOD LOOKING GENTLEMAN [ LAUGHTER ] JUST LIKE MIKE SAID, WE KNEW EACH OTHER BY REPUTATION. SO MY SUCCESSOR WORKED CLOSELY WITH MIKE AND HAD JUST THE MOST WONDERFUL THINGS TO SAY ABOUT HIM. WHEN I HEARD THAT MIKE WAS RETIRING, I THOUGHT, YOU KNOW, IN TERMS OF REALLY THINKING BIG THOUGHTS, IN TERMS OF REALLY UNDERSTANDING THE FUNDAMENTAL FRAGILITY OF THE WORLD THAT WE LIVE IN, THIS IS A TEAM SPORT. AND WHAT TEAM 8 DOES IS IT BRINGS TOGETHER PERSPECTIVES. SO PERSPECTIVES COULD BE THE RETAIL PERSPECTIVE FROM WALMART AVIATION FROM AIRBUS, INSURANCE FROM THEM AT CENTER. BUT THAT’S NOT ENOUGH. YOU NEED INDUSTRY PERSPECTIVE AND PUBLIC PERSPECTIVE AND THE ATTACKERS PERSPECTIVE, THE GOVERNMENT PERSPECTIVE. YOU DON’T SOLVE BIG PROBLEMS, YOU FIRST OF ALL HAVE TO UNDERSTAND THE PROBLEMS. THIS REALLY NO ONE BETTER THAN MIKE TO BE SORT OF THE LIGHTHOUSE, TO UNDERSTAND NOT JUST HOW, WHY WE ARE FRAGILE TODAY, BUT WHY ARE WE GOING TO BE A LITTLE BIT MORE FRAGILE 2 YEARS FROM NOW. >>SAID TO ME LITTLE BIT MORE ABOUT THIS AND WHAT MIKE BRINGS TO THE TABLE. >>LET’S NOT TALK ABOUT MIKE. >>THERE’S MORE INTERESTING THINGS OUT THERE. >>BUT I’M INTERESTED. BUT THIS MIGHT BRING TO THE TABLE? WITH EXPERIENCE AND SO ON? >>IT IS, FIRST OF ALL, IT’S THE EXPERIENCE AND LEADERSHIP. IT IS THE, I WILL GIVE YOU AN EXAMPLE. WE WERE IN TEL AVIV A COUPLE OF MONTHS AGO TALKING TO CSO’S FROM ABOUT 100 OF THE LEADING ENTERPRISE AROUND THE WORLD, ABOUT 50% OF THE U.S., THE REST COMING FROM LATIN AMERICA AND EUROPE AND ASIA. AND WHAT MIKE TOLD THEM, TALK TO THEM ABOUT WAS WHAT DOES IT LOOK LIKE WHEN YOU ARE IN A REAL CRISIS? WHAT DOES IT TAKE? TO UNDERSTAND THE PROBLEM? TO OVERCOME IT AND EXPLAIN IT TO YOUR SENIORS? WHAT IS THE DECISION-MAKING PROCESS THAT COMES WITH THAT? THAT IS THE KIND OF EXPERIENCE THAT, IN THE PAST, LEADERS AND ENTERPRISE DID NOT HAVE. OR THEY DIDN’T HAVE TO GET EXPOSED TO. BUT IF YOU THINK ABOUT WHAT’S HAPPENING TODAY, SOME OF THE MOST IMPORTANT INFRASTRUCTURES THAT MAKE US A CIVILIZATION ARE NOT IN THE HANDS OF GOVERNMENT LIKE THEY WERE IN THE 20th CENTURY. THEY ARE IN THE HANDS OF PRIVATE INDUSTRY ALL THE WAY FROM THE DATA, THE UTILITIES, AND DATA DOESN’T UNDERSTAND GEOGRAPHY. SO THINKING ABOUT WHERE A COMPANY IS FOUNDED IS NOT THE QUESTION THAT YOU SHOULD ASK YOURSELF. THE QUESTION THAT YOU SHOULD ASK YOURSELF IS DO THEY UNDERSTAND THE CHALLENGE. DO THEY HAVE THE RIGHT SCRUPLES? DO THEY HAVE, DO THEY SHARE A COMMON ETHICAL INFRASTRUCTURE. IF THE ANSWER IS YES, PLEASE WORK WITH THEM. >>SO YOU HAVE SEVEN COMPANIES IN TEAM 8 RIGHT NOW? SO TELL ME A LITTLE BIT MORE ABOUT THESE COMPANIES THAT YOU HAVE, THE CHALLENGES THEY ARE TRYING TO SOLVE. >>SURE. I WILL TELL YOU ABOUT A COUPLE. SO LET’S START WITH THE PHYSICAL WORLD THAT SURROUNDS US. LET’S ALL FACE IT, IF THE LIGHTS GO OUT RIGHT NOW AND WE FIND OUT IN A COUPLE OF HOURS OR IN A COUPLE OF WEEKS THAT THAT HAS HAPPENED BECAUSE OF SOME KIND OF CYBER DISTORTION TO THE LOCAL UTILITY, NOBODY IN THIS ROOM IS GOING TO BE EXTREMELY SURPRISED. BECAUSE WHAT IS HAPPENING IS WE GET CONVERGENCE BETWEEN THE PHYSICAL WORLD AND VIRTUAL WORLD AND WE GET CONVERGENCE BETWEEN TWO DIFFERENT ENVIRONMENTS THAT HONESTLY WERE NEVER MEANT TO BE CONVERGED. AND IN THIS CASE, THE INTERNET AND LEGACY ENVIRONMENTS IN THE REAL PHYSICAL WORLDS AND UTILITIES. AND SO FOR EXAMPLE, THAT’S ONE THING THAT WE ARE VERY CONCERNED ABOUT IN ONE OF THE COMPANIES THAT WE STARTED WHICH IS CLARITY HAS THE ABILITY TO VISUALIZE INTO A VERY DETAILED MANNER EVERY BLACK BOX AND EVERY PHYSICAL INFRASTRUCTURE SO THAT NOW YOU CAN CONNECT IT TO THE REST OF THE WORLD, TO THE ILT, TO THE INTERNET, BUT YOU CAN DO IT SAFELY AND SECURELY, OPTIMIZE EVERYTHING. THESE ARE THE KINDS, THIS IS ONE THING THAT WE ARE VERY WORKING VERY CLOSELY, IN FACT, HELENA, ONE OF THE FOUNDERS IS IN THE CROWD AND THEY STARTED A TREMENDOUS COMPANY THAT IS NOW LITERALLY DEPLOYED AROUND EVERY CONTINENT IN THE WORLD. EVERY INDUSTRY IN THE WORLD, MAKING IT SAFER AND MORE SECURE. BUT ALSO ABLE, TO BE ABLE TO MODERNIZE IT AND CONNECTED TO THE REST OF THE WORLD. >>SO ONE OF THE THINGS THAT YOU HAVE YET, INDUSTRIAL CONTROL SYSTEMS, IOT AND PRIVACY. PRIVACY IS A BIG THING THESE DAYS, AND ENCRYPTION IS ON THE RISE, SO MOST UBIQUITOUS WITH MESSAGING APPS. WITH YOUR EXPERIENCE AT THE NSA, HOW DIFFICULT IS THE AN ESSAY JOB WITH THE RISE OF END- TO-END ENCRYPTION? >>IT CERTAINLY MAKES FROM A TECHNICAL PERSPECTIVE, IT CERTAINLY MAKES ACCESS POTENTIALLY MORE CHALLENGING. FOR US AS A FOREIGN INTELLIGENCE ORGANIZATION OPERATING WHEN WE ARE DOING OUR MISSION OUTSIDE THE UNITED STATES, THERE ARE THINGS THAT WE COULD DO OR YOU CAN THINK BEYOND THE ENCRYPTION, YOU CAN PICK A LITTLE BIT MORE BROADLY WHEN YOU ARE THINKING ABOUT PENETRATION AND HOW YOU ACCESS, SO THAT GIVES US SOME OPTIONS. I THOUGHT THE BIGGER CHALLENGE WAS, IT WASN’T FOR US IN OUR MISSION SO MUCH, BUT FOR OUR LAW ENFORCEMENT TEAMMATES WHEN I WAS IN THE GOVERNMENT. AFTER THE LOCAL SHERIFF, THE STATE TROOPER, IF YOU ARE THE FBI AND YOU DON’T HAVE THE TECHNICAL MEANS TO ACCESS DEVICES OR INFORMATION THAT MAY CONTAIN INSIGHTS, CRIMINAL ACTIVITY, EXPLOITATION OF YOUTH AND DRUGS IN KIDNAPPING AND APPLICATION OF VIOLENCE. HOW DO WE, AS A SOCIETY, AND THIS IS SOMETHING THAT ALL OF US SHOULD BE CONCERNED ABOUT, THIS SHOULD BE THE GOVERNMENT UNILATERALLY DECIDING. YOU DON’T WANT INTEL PERSON OR A LAW ENFORCEMENT PERSON DECIDING THIS. I WOULD ALSO ARGUE, NO DISRESPECT TO THE AUDIENCE, BUT I DON’T WANT THE TECH COMMUNITY DECIDING THIS UNILATERALLY. MY IDEA IS WE NEED TO HAVE A CONVERSATION AS A SOCIETY ABOUT WHAT ARE WE COMFORTABLE WITH WITH RESPECT TO PRIVACY AND SECURING THE RIGHTS OF THE INDIVIDUAL AND THE DATA ASSOCIATED WITH THEM? AS WELL AS THE BROADER, ALSO AN IMPERATIVE, HOW DO WE ENSURE THE SECURITY AND SAFETY OF OUR CITIZENS? >>RIGHT NOW, THIS SEEMS TO BE A DEADLOCK BETWEEN THE TECH COMPANIES IN SILICON VALLEY AND LAW ENFORCEMENT AND THE INTELLIGENCE AGENCIES IN THE U.S. GOVERNMENT ESPECIALLY WHEN IT COMES TO ENCRYPTION AND PRIVACY. THERE IS THIS DEADLOCK, IS THERE ANY WAY TO BREAK THAT DEADLOCK? WOULD IT REQUIRE LEGISLATION? >>MY IDEAS ALWAYS BE LEERY OF DIRECTING SOMETHING FROM THE GOVERNMENT, NOT THE GOVERNMENT DOESN’T HAVE IMPORTANT ROLES, BUT I THINK JUST HISTORICALLY, IN GENERAL, WE DON’T ALWAYS GET THAT RIGHT. WHEN I WAS IN GOVERNMENT, THE ARGUMENT I TRIED TO MAKE WAS CAN’T WE DO SOME VERY SIMPLE COORDINATION BETWEEN THE PRIVATE SECTOR AND THE GOVERNMENT AND TAKE A LOOK AT WHAT IS IN THE RANGE OF THE OPTIONS? BECAUSE I THOUGHT THERE WERE TWO QUESTIONS. NUMBER ONE IS WHAT CAN WE DO? WHAT IS IN THE REALM OF THE POSSIBLE? AND THE MORE IMPORTANT CONVERSATION WAS WELL, WHAT SHOULD WE DO? BECAUSE THOSE AREN’T ALWAYS SYNONYMOUS. AND ONE IS A VERY TECHNICAL KIND OF FOCUSED DISCUSSION AND THE OTHER IS MUCH MORE ABOUT ETHICS, MORALITY, LEGAL FRAMEWORK, WHAT ARE WE COMFORTABLE WITH? WHAT WILL REFLECT OUR CULTURE AND HERITAGE? OUR STRUCTURE AS A NATION AND THE THINGS WE VALUE? THOSE OF ALL GOT TO BE PART OF THIS. YOU CAN’T JUST BE WELL, IN THE NAME OF SECURITY, WE SHOULD BE ABLE TO ACCESS ANYTHING ANYWHERE AT ANY TIME UNILATERALLY. I DON’T BUY THAT. I WAS AN INTEL PROFESSIONAL FOR 37 YEARS, I DIDN’T BUY THAT. >>SO TEAM 8 IS DOING VERY WELL RIGHT NOW. YOU GOT A BIT OF THE SECURITY STARTUPS IN THE AUDIENCE. WHERE SHOULD THEY BE FOCUSING THEIR ENERGIES? WHAT ARE THE BIGGEST OPPORTUNITIES? >>SO I THINK WE ARE MOVING FROM PROTECTING THE EXISTING INFRASTRUCTURE TO TRYING TO THINK ABOUT WHAT IS THE WORLD GOING TO LOOK LIKE IN A FEW YEARS? AND SO IF YOU THINK ABOUT PRIVACY FOR EXAMPLE, I THINK THERE ARE THREE LAYERS THAT WE SHOULD THINK ABOUT IF WE ARE GOING TO MAKE GOOD THINGS HAPPEN. BECAUSE WE SPEAK ABOUT CYBER, WE ARE USUALLY FOCUSED ON THE REALLY TERRIBLE THINGS THAT MAY HAPPEN. WE DON’T PUT ENOUGH EMPHASIS ON THE REALLY GOOD THINGS THAT MAY NOT HAPPEN. BECAUSE REGULATION IS NOT MOVING FAST ENOUGH. BECAUSE CULTURALLY WE ARE NOT MOVING FAST ENOUGH, BECAUSE WE ARE FINDING OURSELVES IN REALLY BAD DILEMMAS AND CONUNDRUMS BETWEEN USING THE DATA AND INFERRING PRIVACY. SO ONE OF THE THINGS WE’RE WORKING ON RIGHT NOW ON THE TECHNOLOGY LEVEL IS INTRODUCING NEW CONCEPTS IN MATHEMATICS THAT WILL ENABLE US TO DO BOTH. THAT IS, TO ENCRYPT DATA, BUT STILL USE COMPUTATION UNENCRYPTED DATA. SO THERE IS A VERY SMART LADY THAT HER NAME IS JOFFE GOLDWATER AND SHE GOT THE PRICE FOR THIS, OR FOR THE MULTIPARTY COMPUTATION THAT LITERALLY ALLOWS YOU TO TAKE DATA, ENCRYPTED, AND RUN COMPUTATION UNENCRYPTED DATA. SO APROPOS, GOVERNMENT AND PRIVATE, FOR THE FIRST TIME IN THE UK, WE HAVE INTRODUCED THIS AS A PRACTICAL SOFTWARE WHICH ALLOWS LAW ENFORCEMENT TO SHORTEN THE TIMES IT TAKES TO DO INVESTIGATIONS FOR SERIOUS CRIME, ANTI-MONEY LAUNDERING, ETC. ENCRYPTING THE QUERY SO THERE’S NO PRIVACY ISSUES, QUERYING THE DATA LINKS OF BANKS AND OTHER FINANCIAL SERVICES WITHOUT ACTUALLY SEEING THE DATA, DRAMATICALLY SHORTENING THE TIME IT TAKES TO ACTUALLY FIND THESE PEOPLE WITHOUT ANY PRIVACY ISSUES. AND SO IT’S ALWAYS LAYERS, THERE IS A CULTURAL LAYER AS MIKE SAID, WHAT WE THINK ABOUT THIS AS A SOCIETY? THEN THERE IS THE REGULATOR LEVEL, AND I THINK THE REGULATOR HAS TO MOVE FROM BEING PRESCRIPTIVE TO BEING DESCRIPTIVE. BECAUSE BY THE TIME YOU PRESCRIBE SOMETHING AS A REGULATOR, IT IS ALWAYS BEST PRACTICES, THE PROBLEM WITH CYBER IS THAT IT’S MOVING SO FAST, THAT BY THE TIME SOMETHING BECOMES A BEST PRACTICE, IT IS OBSOLETE. SO YOU HAVE TO BE DESCRIPTIVE, NOT PRESCRIPTIVE. AND IN THE LAYER OF THE TECHNOLOGY, THAT IS WHERE WE WANT TO COME IN AND BRING FUNDAMENTAL CHANGES. SO MELODY DOING HOME A MORE THICK ENCRYPTION LED BY THE PROFESSOR AND OTHERS IS ONE EXAMPLE. BUT THERE ARE OTHERS. WE ARE ALSO DOING USING MULTIPARTY COMPETITION TO ACCESS BLOCK CHAIN WITHOUT USING A KEY AT ALL. THE COMPANY IS CALLED CURVES. THE IDEA IS HERE IS HOW WE PROTECT THE STUFF THAT’S ALREADY OUT THERE. HERE’S HOW WE ENABLE THE FUTURE WITH USING FUNDAMENTALLY CHANGED, FUNDAMENTALLY TRANSCENDING TECHNOLOGIES THAT ALLOW US NOT TO BE IN THIS DILEMMA ALL THE TIME. >>CAN I MAKE ONE COMMENT? >>ONE THING I WOULD SAY TO ANY STARTUP, PLEASE THINK ABOUT SECURITY AS A CORE ASPECT OF WHATEVER IT IS YOU ARE DEVELOPING OR PRODUCING. >>SO WHETHER OR NOT YOU ARE A SECURITY STARTUP. >>BECAUSE ONE OF THE THINGS THAT ALWAYS, LOOK, WE BOTH RAN ORGANIZATIONS THAT, IN DEFENDING THEIR RESPECTIVE NATIONS, PENETRATED NETWORKS FOR A LIVING. AND YOU CAN ALWAYS TELL SYSTEMS IN WHICH SECURITY IS A BOLT ON THAT WAS ADDED AFTER IT WAS WRITTEN, AND THERE ARE ALWAYS ACCESS, POTENTIAL ACCESS POINTS. ONE THING I TRIED TO SAY TO ORGANIZATIONS IS YOU CANNOT VIEW CYBER SECURITY AS AN AFTERTHOUGHT. YOU NEED, JUST AS YOU ARE ALWAYS ASKING YOURSELF, SO WHAT IS THE USER INTERFACE, WHICH THE USER EXPERIENCE GOING TO BE LIKE? I WOULD ARGUE YOU WOULD ALSO BE SAYING TO YOURSELF, EVEN AS I’M OPTIMIZING THAT USER EXPERIENCE, EVEN AS I’M FOCUSED ON ACHIEVING THE MOST EFFICIENT WAY OF EXECUTING WHATEVER IT IS I’M TRYING TO GENERATE. CAN’T YOU ALSO SAY TO YOURSELF, AND HOW DO I DO THAT WITHIN THE MOST REASONABLE AND RESPONSIBLE SECURITY FRAMEWORK THAT I CAN DEVELOP? BUT THAT PART OF THE EQUATION IS OFTEN MISSING EARLY IN THE CYCLE WHEN IT COMES TO DEVELOPMENT OF ORGANIZATIONS AND CAPABILITIES. >>YOU MENTIONED, OBVIOUSLY, THE NSA DOES A LOT OF OFFENSIVE SECURITY WORK, ESSENTIALLY HACKING INTO THE ENEMY, AND NOW YOU ARE WORKING WITH STARTUPS FOCUSED ON PRIVACY SECURITY AND DEFENSE OF MEASURES. HOW DO YOU RECONCILE THOSE TWO? >>YOU KIND OF GO FROM ONE CAREER TO ALMOST IT SEEMS LIKE THE POLAR OPPOSITE. >>WHEN I WAS THE DIRECTOR OF AN ESSAY AND DIRECTOR OF CYBER COMMAND, I WORK THE OFFENSIVE SIDE OF SO ALSO THE DEFENSE OF SIDE. SO I WAS RESPONSIBLE FOR THE DEFENSE OF ALL DOD NETWORKS AND DATA AND WEAPONS SYSTEMS AND PLATFORMS FROM A CYBER PERSPECTIVE AND ALSO TASKED WITH APPLYING DOD, DEPARTMENT OF DEFENSE CAPABILITY TO SUPPORT CRITICAL INFRASTRUCTURE IN THE PRIVATE SECTOR AGAINST CYBER ACTIVITY FROM NON-US ENTITIES. SO THERE IS ALWAYS, I’VE DONE EVERY BIT AS MUCH DEFENSE OF STUFF IF NOT MORE. NSA DEVELOPS ALL OF THE ENCRYPTION FROM THE MATHEMATICAL ALGORITHMS TO THE ACTUAL PRODUCTION AND DISTRIBUTION TO INCLUDE THE FOOTBALL FOR THE PRESIDENT, EVERY MISSILE SILO, EVERY B-52 WITH NUCLEAR WEAPONS, SO I WORKED IN PART OF THE TEAMS THAT WORK THE ENCRYPTION PIECE SO I WAS VERY FORTUNATE. MY PREVIOUS LIFE, I’VE BEEN ABLE TO LOOK AT THIS FROM A KIND OF TACTICAL DAY-TO-DAY EXECUTION HOW DO YOU DEFEND, HOW DO YOU PENETRATE? AND I’VE BEEN ABLE TO BE PART OF BROADER POLICY DISCUSSIONS ABOUT OKAY, SO HOW DO WE TRANSLATE THIS THE POLICY OUTCOMES? I WAS VERY FORTUNATE AND GOT TO SPEND A LOT OF TIME IN THE PRIVATE SECTOR BETWEEN UP IN NEW YORK AS WELL AS HERE IN THE VALLEY. SO HOW CAN WE PARTNER TOGETHER BETTER? SO I ALWAYS TRY TO REMIND PEOPLE, LOOK, I GOT AT THE OFFENSIVE PIECE AS THE SEXY STUFF. SECONDLY, ONE OF THE THINGS FOR ME THAT WAS A REDLINE WAS I WILL NOT PARTICIPATE IN ANY PRIVATE-SECTOR OFFENSIVE ACTIVITY. THAT, TO ME, SHOULD BE RETAINED UNDER THE CONTROL OF THE NATIONSTATE. >>HONESTLY, THERE IS A NATION HACKING BACK ALSO. >>NOW, THAT CHALLENGE, NOT CHALLENGE, BUT PART OF HACKING BACK IS HOW YOU DEFINE IT. I HAVE SEEN SOME PEOPLE DESCRIBE THIS FOR WHAT I WOULD CONSIDER PRETTY ASK LATORRE OFFENSIVE ACTS TO FAIRLY BENIGN, HEY I’M A LOOK, I’M JUST TRYING TO MAKE SURE I CAN FORESTALL WHAT THEY ARE DOING AND THERE IS A WIDE SPECTRUM. IN GENERAL, AND I CAN REMEMBER SAYING THIS IN THE WHITE HOUSE SITUATION ROOM WITH LEADERSHIP MANY TIMES, AS AN INDIVIDUAL WHO WAS PART OF TEAMS THAT WAS TASKED WITH SECURING AND DEFENDING, THE ANALOGY I USED TO USE WITH THEM WAS LOOK, I KNOW SOMETIMES YOU LOOK AT ME AS HEY, YOU’RE LEADING THE TEAMS THAT ARE HELPING AND I WAS THE ONLY ONE IN THE DOD WASN’T THE ONLY ORGANIZATION, BUT YOU’RE PART OF THIS BROADER GOVERNMENT EFFORT TO SECURE CYBER. WHAT ABOUT HACKED BACKS, AND MY COMMENT WOULD BE, LOOK, I ONLY FEEL ON MOST DAYS LIKE IT IS THE WILD WEST AND MYSELF AND THE TEAM I’M A PART OF, WE ARE THE SHERIFF ON THE STREET. THE LAST THING IN MY OPINION THAT YOU WANT IS MORE PEOPLE RUNNING AROUND THE STREET WITH GUNS. THIS ISN’T THE ANSWER. I WAS ALSO CONCERNED ABOUT, SO HOW COMFORTABLE ARE WE WITH PRECISION AND ATTRIBUTION? BECAUSE IF YOU DON’T GET THE ATTRIBUTION RIGHT, YOU GET MASSIVE SECOND AND THIRD ORDER EFFECTS FROM A LIABILITY PERSPECTIVE, I’M NOT A LAWYER, BUT ONE OF THE CONVERSATIONS I’VE HAD WITH GENERAL COUNCILS OF LARGE COMPANIES TO SMALL COMPANIES IS, SO, HAVE YOU GONE DOWN THE HACKED BACK ROAD AND YOU INCUR SECOND AND THIRD ORDER EFFECTS, WHAT IS THE LEGAL LIABILITY FOR YOU? AND MOST LAWYERS WILL LOOK AT YOU AND GO WELL, IT POTENTIAL IS PRETTY SIGNIFICANT. JUST IN GENERAL, TO ME, MY ATTITUDE IS I CERTAINLY WOULD NOT GO OFFENSIVE. >>SO WHILE I HAVE YOU TO ON STAGE, YOU BOTH HAVE SEEN ALL KINDS OF HACKS AND ACTIVITY OVER THE YEARS. WHAT DO YOU TO DO TO KEEP SAFE AND SECURE? >>YOU GO FIRST, AND I WILL GIVE YOU THE OPINION. >>IT’S, I THINK THERE IS A GENERATIONAL GAP. SO MY GENERATION, WE GREW UP WHERE EVERYTHING WAS PRIVATE. AND YOU DECIDE WHAT YOU WANT TO PUBLICIZE. WHAT DO YOU WANT TO PUBLISH? >>AND WE ARE ALMOST IN A SITUATION TODAY WHERE IT IS THE OPPOSITE. EVERYTHING IS PUBLIC, BUT YOU CAN STILL CHOOSE WHAT YOU WANT TO KEEP PRIVATE. AND I THINK THIS GENERATION, MILLENNIALS AND BEYOND, I THINK THERE’S GOING TO BE A BACKLASH BACK TO PRIVACY. AND I THINK THE WORLD IN WHICH WE TRADED OUR DATA AND PRIVACY FOR CONVENIENCE, THAT PARTY IS ABOUT TO COME TO AN END. I THINK THE MUSIC IS SUBSIDING. I DON’T THINK THAT’S GOING TO BE THE FUTURE. I THINK THE FUTURE, WE WILL SEE A BACKLASH BACK TO PRIVACY. I THINK PEOPLE VALUE THEIR PRIVACY AND I THINK IT IS A FUNDAMENTAL RIGHT THAT WE HAVE. AND IN THAT SENSE, I THINK THE KEY WORD IS TRUST. SO WE CAME FROM A WORLD WHERE WE KNEW EACH OTHER AND WE GREW UP TOGETHER AND WE HAD COFFEE AND WE TALKED, SO WE HAVE TRUST. AND THEN THE WORLD GOT CONNECTED. SO WE HAD, WE SAID HEY, WE TRUST, BUT WE NEED TO TRUST BUT VERIFY THAT THE WORLD BECAME HYPER CONNECTED, WAS IT ALL, NOW WE ARE GOING FOR ZERO TRUST. IN ZERO TRUST SOUNDS VERY APPEALING, BUT IT’S ALSO VERY COSTLY. >>AND SO I THINK WHERE WE SHOULD GO IS BEYOND TRUST, BEYOND TRUST MEANING THE STAKES HAVE TO BE AT A POSITION WHERE WE ARE ABLE TO COLLABORATE WITHOUT THE HIGH PRICE OF ZERO TRUST. THAT IS THE KIND OF THING WHERE TRYING TO DO WITH CURVE AND GOING FOR CREATING THE INFRASTRUCTURE THAT TAKES US BEYOND TRUST. >>ADMIRAL, WE ONLY HAVE A MINUTE LEFT ON THE CLOCK, YOU SPENT 5 YEARS AT NSA DOING A PRETTY MANY CHANGES. >>AN INTERESTING TIME? >>YOU OVERSAW THE NSA DURING THE AFTERMATH OF THE EDWARD SNOWDEN DISCLOSURES AND MULTIPLE LEAKS AND EXPOSURE OF THE PRIZED HACKING TOOLS BY THE BROKERS, WHAT WAS YOUR BIGGEST REGRET? >>I WILL BE HONEST, I HAVE VERY FEW IF ANY. I FEEL MORE PRIDE THAN ANYTHING ELSE. I GOT TO WORK WITH INCREDIBLY MOTIVATED MEN AND WOMEN DOING SOMETHING THAT MATTERED WITHIN A LEGAL FRAMEWORK THAT WE FULLY SUPPORTED, AND IN SO DOING, WE CREATED INCREASED SECURITY FOR THE CITIZENS AND OUR FRIENDS AND ALLIES. >>DO YOU THINK IS A GHOST >>I LOVED EVERY DAY OF THAT AND I WOULD DO IT ALL AGAIN IN A HEARTBEAT. >>YOU THINK AN ESSAY IS READY TO CONTINUE WITH ITS MISSION IN THE NEXT 5 YEARS OR 10 YEARS GIVEN THE ISSUES WE ARE ACING WITH PRIVATIZATION AND ENCRYPTION? >>THERE HAS ALWAYS BEEN A CHALLENGE. I CAN REMEMBER IN THE LATE 90s WHEN WE WERE GOING FROM RADIOFREQUENCY BASED COMMUNICATIONS TO THE WORLD OF THE NETWORK, AND I CAN REMEMBER AT THE TIME, I WAS THE EXECUTIVE ASSISTANT TO THE SENIOR SIGNALS INTELLIGENCE OFFICER IN THE NAVY AND HE WAS HAVING DISCUSSION WITH THE DIRECTOR OF NSA AND THE DIRECTOR WAS TELLING THEM, THINGS ARE TERRIBLE. WE ARE GOING TO LOSE ACCESS, WE WILL BE ABLE TO DO SOME OF THINGS WE USED TO ABLE TO DO AND MY ATTITUDE IS, LOOK, YOU LOOK AT HIS MOTIVATED MEN AND WOMEN AND THEIR FOCUS AND COMMITMENT, YOU LOOK AT THE LEVEL OF SUPPORT THAT THIS NATION, THE CITIZENS, THE MONEY. THE LEGAL FRAMEWORK THAT WE’VE CREATED TO TRY TO MAKE SURE WE STRIKE A BALANCE AND THAT WE ARE MINDFUL THAT WE ARE OPERATING AS INTELLIGENCE PROFESSIONALS IN A DEMOCRACY, THIS IS OF THE AUTHORITARIAN STATES IN MY COUNTERPARTS IN BEIJING OR MOSCOW WHERE LOOK AT WHAT THEY WOULD DO AND I WOULD GO, WE NOT ONLY COULDN’T DO THAT, I WOULD NEVER DO THAT. THAT WOULD NEVER WORK WITHIN THIS LEGAL FRAMEWORK AND THE FUNDAMENTAL IDEA OF THE RIGHTS OF THE INDIVIDUAL. WE COULDN’T OPERATE. I WOULDN’T OPERATE LIKE THAT. >>THE BOTTOM LINE IS, I ALWAYS TEND TO BE A POSITIVE INDIVIDUAL. MOTIVATED MEN AND WOMEN CAN TAKE HARD PROBLEMS AND THEY WILL DO WELL, AND THERE SUCH MOTIVATED MEN AND WOMEN ON THOSE TEAMS AT NSA AND CYBER COMMAND. I WAS VERY FORTUNATE TO BE A PART OF IT. I WAS VERY FORTUNATE TO GET TO WORK WITH TEAMMATES LIKE 8200 AND TEL AVIV AND OTHER PLACES AROUND THE WORLD TO TRY TO ADDRESS PROBLEMS THAT IF WE DIDN’T SOLVE THEM OR WE DIDN’T IMPROVE OUR ABILITY, WE ARE GOING TO SEE MEN AND WOMEN DIE. YOU NEVER FORGET THAT IN THE JOB. >>THAT’S ALL THE TIME WE HAVE. THANK YOU. [ APPLAUSE ] >>THANK YOU SO MUCH, GENTLEMEN. WE APPRECIATE IT. NO. I DON’T LIKE THAT. OKAY, ON THE Q&A STAGE, BLASTING INTO SPACE WITH TESS HATCH, THE INVESTOR AT BESSEMER VENTURES SARAH SPENT JELL-O, THE CEO OF SWARM TECHNOLOGIES AND ADRIAN STECKEL’S THAT’S THE CEO OF ONE WEB. IF YOU HAVE QUESTIONS ABOUT SPACE, HIT UP THE Q&A STAGE. THE NEXT GUEST IS THE CEO OF A COMPANY THAT TENDS TO FLY KIND OF UNDER THE RADAR, BUT THEY HAVE THEIR HANDS IN PAYMENTS AND THEN TECH, FOOD, CLASSIFIED TRAVEL, RETAIL MEDIA, YOU NAME IT, THEY’VE GOT IT. SO WITH THAT, I WOULD LIKE A WARM WELCOME FOR OUR NEXT GUEST, PLEASE WELCOME THE CEO OF PROCESS AND ASPERS, BOB VAN AND YOUR MODERATOR INGRID LONDON. [ APPLAUSE ] >>HELLO, EVERYBODY. HI BOB. >>HI. >>HOW ARE YOU DOING? >>VERY WELL, THANK YOU FOR HAVING ME. >>THANK YOU FOR COMING. NOW THAT WE ARE IN THE U.S., WE ARE NOT AN AMERICAN COMPANY, SO I THINK MAYBE WE SHOULD START OUT WITH YOU GIVING US THE ELEVATOR PITCH BECAUSE I’M NOT SURE HOW MANY PEOPLE KNOW WHO YOU GUYS ARE. >>ABSOLUTELY. SO WE ARE ACTUALLY BOTH INVESTOR IN IN MANY CONSUMER INTERNET BUSINESSES AROUND THE WORLD AND WE ARE ALSO AN OPERATOR, SO WE HAVE ABOUT 20,000 EMPLOYEES IN THE GROUP. WE INVEST IN CONSUMER MODELS THAT ARE HIGH-GROWTH AND TYPICALLY WOULD ADDRESS A VERY FUNDAMENTAL SOCIETAL NEED AND HAS A LOT OF RUNWAY FOR GROWTH AND WE DO THAT IN THE SEGMENTS WE JUST HEARD ABOUT. WE ARE PRETTY BIG IN FOOD DELIVERY, ONE OF THE BIGGEST INVESTORS IN FOOD DELIVERY AROUND THE GLOBE AND BETWEEN US AND THEN TECH IN ENABLING ONLINE PAYMENTS AND GROWTH MARKETS, INDIA IS PROBABLY THE MOST IMPORTANT MARKET, AND THEN WE ARE THE OWNERS OF THE LARGEST CLASSIFIEDS GROUP IN THE WORLD. >>AND YOU GUYS HAD A MAJOR EVENT IN THE LAST SEVERAL WEEKS? IT WAS PROCESS. DO YOU WANT TO TELL US ABOUT WHAT HAPPENED? >>ABSOLUTE. WE TOOK ALL OF OUR INTERNATIONAL CONSUMER INTERNET ASSETS AND WE LISTED THEM ON THE EURONEXT EXCHANGE IN EUROPE. >>BASIC THEM, BASICALLY HIGH THEM OFF THE SOUTH AFRICAN ONES. >>WE LISTED THEM SEPARATELY AND WE PLACED A GOOD CHUNK OF THAT SHARES WITH EXISTING SHAREHOLDERS, SO WE DIDN’T ISSUE NEW SHARES, SHARES. WE ISSUED THOSE TO THE SHAREHOLDERS. IT’S ABOUT A $120 BILLION MARKET COMPANY WHICH IS THE FIRST TIME THAT EUROPE HAS A CONSUMER INTERNET COMPANY OF THAT SIZE WHICH IS AN EXCITING EVENT. >>SO WHY DID YOU DECIDE TO DO THAT IN AMSTERDAM? >>THERE WERE A FEW REALLY GOOD REASONS. FIRST OF ALL, IT IS A VERY LARGE EXCHANGE. ABOUT $4 TRILLION IN OVERALL MARKET. SO WE KNEW WE COULD HAVE A LOT OF RUNWAY TO GROWTH AND WE THINK WE CAN DOUBLE THE VALUE OF THE COMPANY IN THE NEXT 3 YEARS AND WE REALLY NEEDED A PLACE WHERE WE COULD FIND THAT SPACE, AND THEY HAVE IT. A FEW OTHER THINGS THAT WORKED REALLY WELL, WE HAVE THE GLOBAL AI TEAM THAT SITS IN AMSTERDAM AND THE MOBILE ENGINEER AND MOBILE MARKETING TEAM SITS IN AMSTERDAM. WE HAVE A GREAT PRESENCE AND WE FOUND ALSO WE GET GREAT PEOPLE FROM SAN FRAN AND WE LIKE THE PLACE LOT. >>I THINK AMSTERDAM HAD A WONDERFUL EVOLUTION, YOU HAVE COMPANIES LIKE ADDIE IN THEIR. IT SAID MUCH MORE ATTENTION. >>IT’S BECOME MUCH MORE OF A TECH COMPANY IN EUROPE. IT’S AN EASY PLACE FOR PEOPLE TO SETTLE AND NOW THERE IS THIS SORT OF CRITICAL MASS OF GREAT TALENT, ENGINEERING TARRANT, TALENT. >>AN IMPORTANT THING ABOUT PROCESS WHICH HE DID MENTION AT ALL IS THE FACT THAT IT’S GOT YOUR HOLDINGS AT $.10, WHICH IS THE PARENT OF WE CHAT AND A BUNCH OF DIFFERENT THINGS. YOU GUYS ARE HOLDING ONTO ALL OF THAT. YOU SAID IT IS NOT RAISING MONEY, BUT ARE YOU PLANNING TO IN THE FUTURE RAISE MONEY THROUGH PROCESS IN ANY WAY? >>SO WE WILL SEE HOW WE GO. I THINK ONE OF THE THINGS THAT WAS REALLY IMPORTANT FOR US WAS TO ATTRACT A NEW SET OF INVESTORS TO THE GROUP. SO TRADITIONALLY, EVEN THOUGH WE ARE 100% CONSUMER INTERNET IF YOU LOOK AT THE REVENUE BASE. WE HAD A LOT OF EMERGING-MARKET FOCUSED INVESTORS IN THE COMPANY WHICH WE ARE VERY EXCITED ABOUT, BUT TO BE A BIT LET, LESSER PRESENTED ON THE TECH SIDE AND IT WAS VERY IMPORTANT FOR US TO DO. AND SINCE IT IS SUCH A RARE LISTING OF THAT SIZE IN CONSUMER TECH IN EUROPE, WE ARE GETTING A LOT OF ATTENTION. >>SO IT IS A MASSIVE BUSINESS. THEY ARE GIVING YOU A MICROPHONE. YOU ARE TOO QUIET? MAYBE. >>THERE WE GO. >>SO YES. IT IS A MASSIVE BUSINESS AND IT’S GOT 10 SENT AND OTHER THINGS INSIDE IT. BASED OUT OF AMSTERDAM. HOW MUCH OF AN ISSUE IS IT THAT YOU DON’T REALLY HAVE ANY PROFILE IN THE U.S.? IS THAT A BIG DEAL FOR THE COMPANY? DO YOU WANT THAT THE CHANGE? BECAUSE A LOT OF BUSINESSES ARE ACTUALLY NOT IN THE U.S., THEY ARE IN EMERGING MARKETS AND ASIA AND SO ON. >>SO HISTORICALLY, IF YOU LOOK AT WHAT THE COMPANY HAS BEEN DOING, WE ARE VERY MUCH A GROWTH COMPANY. CURRENTLY, THE ORGANIC GROWTH IS AROUND THE 30% MARK IN SOME OF THE SEGMENTS IN FOOD HAS GROWN MORE THAN 50%. AND GROWTH OFTEN HAS LED US TO GO TO GROWTH MARKETS. >>BUT WE ARE NOT A GROWTH MARKETS PER SE COMPANY. SO WE HAVE INVESTED IN THE U.S. QUITE A BIT IN A COMPANY CALLED LET GO. THAT IS ENABLING PEOPLE TO USE THEIR MOBILE PHONES TO BUY AND SELL >>IT IS LIKE AN eBAY DISRUPTOR. >>IT IS ACTUALLY A NEW WAY, SIMPLER WAY FOR PEOPLE TO SELL THINGS THEY DON’T NEED ANY MORE. BASICALLY THE GUY THAT FOUND IT , ALEC OXENFORD, HE’S A GREAT GUY. IT IS HIS MISSION IN LIFE TO MAKE SELLING SOMETHING AS EASY AS THROWING IT AWAY. SO WE INVESTED AROUND HALF $1 BILLION IN THE U.S. AND WE HAVE A VENTURES PRESENCE IN SAN FRANCISCO. IT’S JUST A FEW STREETS DOWN THE ROAD THAT LOOKS AT NEWER EARLIER STAGE COMPANIES, PARTICULARLY WITH THE GLOBAL POTENTIAL. WE LOOK AT WHAT WE REALLY BRING, WE OPERATE IN 90 COUNTRIES AND I’VE SPENT 200 DAYS A YEAR ON THE ROAD SEEING THE BUSINESS IN THAT COUNTRY. I THINK WHEN YOU ARE A YOUNG COMPANY OUT HERE THAT HAS GLOBAL POTENTIAL, I THINK WE ARE THE RIGHT KIND OF PARTNER. >>DOES THAT MEAN YOU THINK YOU MIGHT TRY TO INCREASE YOUR PRESENCE IN THE U.S. OVER TIME? OR MORE INVESTING? >>WE FOUND SOME AMAZING EARLY- STAGE COMPANIES THAT WE INVESTED. HONOR OUT OF THE U.S. THAT IS BASICALLY DIGITIZING HOW PEOPLE DEAL WITH ELDERLY PEOPLE, THEY NEED CARE, AND IT’S IN A STEP CHANGE WAY. SO I THINK WE’VE SEEN EXCEPTIONAL COMPANIES COME OUT OF HERE, AND WE LOVE IT WHEN THEY HAVE A BUSINESS MODEL THAT ADDRESSES SOMETHING THAT WOULD REALLY APPLY TO THE WORLD. >>YOU SAY YOU GOT A LOT OF INVESTMENTS IN FOOD. YOU GOT TONS THAT YOU ARE DOING AND MAYBE IF WE COULD PUT THAT ALL INTO THE BIGGER BASKET OF COMMERCE, WHY DID YOU GUYS THIS, WHY DID YOU GUYS DECIDE TO FOCUS ON THAT AREA? IF I COULD EXTRAPOLATE FROM ALL OF THAT, I WOULD SAY IT’S AROUND THE GENERAL COMMERCE, WHY? >>WE THINK COMMERCE IS PROBABLY, IN TERMS OF ADDRESSABLE MARKET, ONE OF THE LARGEST OPPORTUNITIES OUT THERE. AND I THINK THERE IS ANOTHER KEY TERM IN THERE FOR US, WE LOOK FOR BIG CONSUMER NEEDS IS ONE OF THE THINGS, SO COMMERCE IS A LOGICAL ONE, AND FOOD IS PART OF COMMERCE. AND ALSO, WE HAVE HAD I THINK MOST OF OUR EXPERIENCE ON THE CONSUMER SIDE. AS A COMPANY, WE BEEN AROUND FOR A LONG TIME AND WE ALWAYS BUILD CONSUMER BUSINESSES THAT ARE DRIVEN BY TECHNOLOGY. THIS IS WHERE THE CORE EXPERTISE IS, AND I THINK ALSO WHERE A VERY LARGE PART OF THE OPPORTUNITY LIES. >>IN THAT AREA, ONE THING THAT YOU’VE DONE A LITTLE BIT IN AND YOU’VE DABBLED IN IT, BUT YOU HAVEN’T DONE SO MUCH, BUT I WOULD BE CURIOUS TO HEAR WHAT YOUR OPINION IS. WHERE ARE YOU ON CRYPTO CURRENCIES AND BITCOIN AND ALL OF THE REST? >>WE HAVE DONE THREE INVESTMENTS IN CRYPTO SO FAR. WE ARE IN. >>BUT ON THE SMALLER SIDE? >>THEY ARE ALL RELATIVELY SMALL. I THINK WE ARE TREMENDOUSLY EXCITED ABOUT WHAT CRYPTO CAN DO FOR THE WORLD. AND I THINK THE, I WOULD HOPE THAT WE ARE SEEING SORT OF STEP ONE OF 1000 STEPS GOING FORWARD. I HOPE WE ARE AT 1% OR LESS INTO WHAT IT CAN BE. AND I DO THINK THERE IS, IN TERMS OF ACTUAL PRACTICAL APPLICATIONS, THAT TAKE PEOPLE, THAT TAKE A FUNDAMENTAL NEED AN IMPROVEMENT, I THINK THERE’S A WAY TO GO. I THINK THE POTENTIAL IS HIGH, BUT IT’S STILL VERY EARLY DAYS. >>YOU THINK THERE’S A LOT OF SPECULATION AND CONNING GOING ON IN CRYPTO AT THIS POINT? >>I THINK IT IS A MIX. I THINK IN TERMS OF ICO, THERE’S BEEN A TREMENDOUS AMOUNT OF MISCHIEF. AND I THINK WE’VE STAYED RELATIVELY FAR AWAY AND THERE ARE IDEAS THAT ARE LOOKING FOR BACKING. SO WE NEED TO BE CAREFUL. >>WHAT DO YOU THINK OF THINGS LIKE FACEBOOK’S LIBRA PROJECT? >>WE ARE ONE OF THE PEOPLE SUPPORTING LIBRA. >>SO ONE OF THE REASONS THAT WE GET EXCITED ABOUT IT, WE DO A LOT OF WORK IN GROWTH MARKETS. WE ARE ACTUALLY, FOR PEOPLE TO TRANSFER VALUE AND IT GOES WITH INCREDIBLY HIGH TRANSACTION COST AND THERE’S TYPICALLY A LOT OF FRICTION AND UNCERTAINTY. I THINK IF YOU LOOK WHAT LIBRA COULD BE, THAT WILL BE A TREMENDOUS ASSET FOR PEOPLE PARTICULARLY IN THOSE MARKETS THAT DON’T HAVE THE BENEFIT OF A STABLE CURRENCY AND LOW TRANSACTION FEES. SO WE THINK IT WILL DO A LOT OF GOOD FOR THE WORLD. WE ALSO THINK THAT IT WILL BE SUCCESSFUL IF MANY PEOPLE SUPPORT IT. AND THAT IS WHY WE WERE ATTRACTED TO SUPPORT LIBRA. AND WE HAVE GOOD HOPES FOR IT. I KNOW THAT THERE ARE A TON OF DISCUSSIONS AROUND THE REGULATORY ASPECT OF IT. >>IT HAS BEEN REALLY ROCKY SO FAR. I THINK THEY DID LAUNCH WITH A LOT OF NAMES ATTACHED TO IT, BUT YOU KEEP HEARING ABOUT PEOPLE THREATENING TO PULL OUT. I THINK THE LATEST I READ A RUMOR THAT PAYPAL IS APPARENTLY LOOKING TO NOT BE INVOLVED ANYMORE. IS THERE SOMETHING THAT COULD LEAD YOU TO MAKING THAT KIND OF A CHOICE? OR ARE YOU COMMITTED? >>THE REASONS WHY WE STARTED SUPPORTING IT, THEY STILL HOLD. SO I THINK THERE’S NUMBER OF ISSUES THAT NEED TO BE WORKED THROUGH, BUT I THINK WHAT IT CAN REALLY BRING, HUGE BENEFIT TO PEOPLE, PARTICULARLY IN THE MARKETS WE KNOW AND CARE ABOUT. AND I THINK WE SEE THAT IF WE HAVE THE RIGHT LAYERS BEHIND IT, THAT COULD BE A GREAT THING TO BUILD. >>FAIR ENOUGH. >>I WILL SWITCH TO ONE OF THE OTHER THINGS THAT YOU ARE DOING. NOT THIN TECH AS SUCH, BUT IN COMMERCE WHICH IS ALL OF THE FOOD DELIVERY AND EVERYTHING. YOU ARE A BIG PLAYER IN CERTAIN PARTS OF THE WORLD. WE WILL HAVE POST MATES ON LATER TODAY. AND I THINK IT IS A REALLY INTERESTING AREA. BUT IT IS MAKING A LOT OF LOSSES RIGHT NOW. IT IS A TOUGH ONE TO DO AS A BUSINESS, LONGER-TERM. HOW DO YOU THINK IT WILL SWITCH OVER INTO BEING A PROFITABLE, PROFITABLE INDUSTRY? IT’S DEFINITELY POPULAR. IT DEFINITELY IS GROWING, BUT IT’S DEFINITELY LOSING MONEY. SO WHAT DO YOU THINK? >>IF YOU LOOK AT, WE DEPLOYED ABOUT $5 BILLION IN THE ONLINE FOOD DELIVERY, SO WE HOPE IT WILL WORK OUT. WE THINK IT WILL WORK OUT. ONE OF THE THINGS WE SPENT A LOT OF TIME ON WHEN WE GO INVEST AS WE SAY IS A FUNDAMENTAL CONSUMER NEED AND I THINK PEOPLE SPEND A LOT OF TIME AND MONEY ON FOOD. AND TECHNOLOGY HAS ACTUALLY PLAYED A RELATIVELY SMALL ROLE. I SAY IN THE WHOLE FOOD DELIVERY AND FOOD PREPARATION SPACE. SO WE KNOW THAT TECHNOLOGY CAN DO A LOT OVERTIME. AND WE DON’T SPEND A LOT OF TIME, DO WE UNDERSTAND THE FUNDAMENTALS OF THE BUSINESS MODEL ARE THEY HEALTHY? AND I THINK IT FOOD DELIVERY, THEY ARE. SO WE STARTED INVESTING IN FOOD DELIVERY ALMOST A DECADE AGO IN BRAZIL, AND WE INVEST IN A COMPANY CALLED I FOOD WHICH I THINK WAS PROFITABLE YOUR GO. THE ECONOMICS ARE GREAT, BUT WE THOUGHT THE BUSINESS OPPORTUNITY IS MUCH BIGGER THAN WE THOUGHT BUT FROM HERE, IT’S PROBABLY A 20 X AT THE TOP AND OTHER PEOPLE ARE SPENDING AGAINST THAT AS WELL. SO I THINK YOU WILL SEE LOSSES AND CASH CONSUMPTION, BECAUSE THE OVERALL ENDPOINT IS SO EXCITING. SO WE ARE QUITE COMFORTABLE WE WILL GET THERE. >>BUT GENERALLY SPEAKING, AS AN INVESTOR, YOU GUYS ARE AN OPERATOR, BUT ARE ALSO VERY MUCH AN INVESTOR. SO YOU TAKE STAKES IN THESE COMPANIES. BUT A LOT OF THEM ARE STILL, IN THIS WIDER AREA OF DELIVERY AND SO ON. THEY ARE STILL IN THE BLACK OR IN THE RED. HOW MUCH AN ISSUE IS THAT FOR YOU AS AN INVESTOR? AND HOW WILLING ARE YOU TO STAY WITH THE COMPANY’S WHILE THEY ARE LOSSMAKING LONGER-TERM? WILL YOU STAY UNTIL THEY ARE PROFITABLE? OR JUST UNTIL YOU CAN SELL TO SOMEONE HIGHER. >>IN MANY CASES, ONE OF THE THINGS THAT IS TYPICAL FOR US, WE ARE A LONG-TERM INVESTOR, WE ARE NOT A FUN, WE HAVE NO EXIT HORIZON. IF WE LIKE INVESTMENT, WE CAN STICK WITH IT FOR 20 YEARS AS WE HAVE DONE WITH $.10 FOR EXAMPLE. WE HAVE A LONG-TERM HORIZON. THAT’S IMPORTANT FOR US. WE NEED TO HAVE A LOT OF CONFIDENCE THAT THE BUSINESS MODEL WORKS AND THEN WE DON’T MIND AS LONG AS WE SEE PROGRESS. THE CLASSIFIEDS BUSINESS, WE START INVESTING ABOUT EIGHT OR 9 YEARS AGO AND THE MAIN OPERATING LOSSES WERE FOR 7 YEARS AND IT TURNED PROFITABLE LAST YEAR. HE SAYS IT’S A GREAT BUSINESS. WE TOLD YOU IT WAS A GREAT BUSINESS. >>RIGHT. BUT HOW ABOUT, YOU MENTIONED $.10, WHICH IS, I’M GLAD YOU DID. YOU GUYS ARE THE BIGGEST SHAREHOLDER NOW, IS THAT RIGHT? >>THAT’S A, WE HAVE 31% OF TENTS AND CHAIRS. >>THAT IS AN AMAZING THING TO HAVE. OF COURSE, YOU GUYS AMASSED THAT WHEN IT WAS A MUCH SMALLER BUSINESS THAN IT IS NOW. BUT IT TURNED OUT TO BE A HUGE HIT FOR YOU GUYS. BUT YOU DON’T REALLY HAVE MUCH OF AND INVOLVEMENT WITH THE COMPANY OPERATIONALLY, DO YOU? >>WE HAVE TWO BOARD SEATS AT CONSENT, AND WE ARE WELL CONNECTED AND WE’VE BEEN INVESTING FOR 20 YEARS. AND I MUST SAY, IF YOU LOOK AT THE OPPORTUNITY THAT THE CHINESE INTERNET HAS BECAUSE OF THE SHEER SIZE OF IT, ALMOST 1 BILLION INTERNET USERS, THE DIGITIZATION OF THE CHINESE ECONOMY I THINK IS AT A LEVEL WHERE THE REST OF THE WORLD NEEDS TO CATCH UP ON AND IS NOT EVEN CLOSE TO, AND I THINK THE LEVEL OF INNOVATION WE SEE AS WELL, IT’S JUST A FANTASTIC OPPORTUNITY AND WITHIN THAT SPACE, I THINK $.10 HAS THE MOST AMAZING LEADERSHIP TEAM. A VERY HUMBLE OPERATIVE AND HUNGRY FANTASTIC TEAM. >>DO YOU HAVE MUCH OF A SAY WHEN THEY COME UP IN CONTROVERSIAL WAYS? FOR EXAMPLE, THERE ARE QUESTIONS OVER CENSORSHIP IN CHINA. AND WHAT ROLE TENTS AND OF COURSE OWNS WE CHAT AMONGST OTHER THINGS. YOU HAVE ANY INVOLVEMENT ON THAT FRONT WHEN THEY HAVE TO FACE THOSE SORTS OF QUESTIONS BOTH IN THE INTERNATIONAL ARENA AND IN CHINA, ITSELF? >>I THINK THE BROADER QUESTION IS, AND IT’S REALLY IMPORTANT AROUND HOW WE OPERATE. SO WE ARE A COMPANY THAT EMPOWERS LOCAL ENTREPRENEURS TO RUN THEIR BUSINESS. WE DO THAT IN CHINA, AND ACTIVE ENGAGED SHAREHOLDER. BUT AT THE COMPANIES THAT WE ARE OPERATED BY LOCALS. SO IF YOU TAKE INDIA, FOR EXAMPLE, THE FOOD DELIVERY BUSINESS, THAT YOU MENTIONED EARLIER, WE’VE INVESTED BEHIND A TREMENDOUS ENTREPRENEUR CALLED HARSHA. HE RUNS THE BUSINESS AND HE DEALS WITH THE SPECIFIC LOCAL ISSUES THAT NEED TO BE DEALT WITH. AND WE OPERATE IN 90 COUNTRIES AND WE REALLY HAVE TO DO IT THAT WAY. >>SEE DON’T TRY TO GET TOO INVOLVED IN THE? >>WE GET INVOLVED IN STRATEGY BUT NOT IN THE LOCAL COMPONENTS OF THE BUSINESS. >>WITH $.10, I KNOW THAT YOU HAVE A FAIRLY LARGE STAKE IN THE COMPANY. DO YOU HAVE PLANS ON CHANGING THAT IN ANY WAY, EITHER GOING OR TRYING TO GROW ANYMORE OR TO REDUCE IT AND USE SOME OF THE PROCEEDS FOR SOMETHING ELSE? WHAT’S THE LONG-TERM STRATEGY WITH IT? >>WE ARE REALLY EXCITED ABOUT THE FURTHER WORLD POTENTIAL OF TENTS AND. AS I MENTIONED BEFORE, THE OVERALL MARKET I THINK IS THE MOST ATTRACTIVE INTERNET MARKET IN THE WORLD AND WITHIN THAT, I THINK TENTS AND HAS A TREMENDOUS POSITION IN TERMS OF WE CHAT AND ALSO IF YOU LOOK AT THE VIDEO BUSINESS, IF YOU LOOK AT THE PAYMENTS BUSINESS, THAT HAS A TREMENDOUS FURTHER RUNWAY FROM HERE AND WE ARE REALLY EXCITED TO BE ABLE TO BE THERE. SO WE WANT TO SEE THAT FURTHER GROWTH HAPPEN AND WE ARE VERY PROUD TO BE PART OF IT. >>SO WHAT I TAKE THAT TO MEAN, WOULD WE UNDERSTAND THAT AS YOU WANT TO STAY WHERE YOU ARE? YOU DON’T WANT TO GROW IT OR REDUCE IT IN ANY WAY? >>THAT SHE SAID WE WOULD REDUCE IT IN THE NEAR FUTURE, AND GIVEN THE FUTURE OPPORTUNITY, WE LOVE IT. >>YOU THINK YOU HAVE AN OPPORTUNITY TO INCREASE YOUR STAKE IN IT AS WELL? >>THAT’S A GOOD QUESTION. I THINK IF I LOOK AT WHAT WE TRY TO DO, WE ARE A GROWTH COMPANY, WE WANT TO INVEST IN CONSUMER INTERNET IN THE PLACES IN THE WORLD WHERE THERE IS MOST TO BE GAINED IN OUR VIEW, I MIGHT BE WRONG, BUT I THINK CHINA HAS BEEN A FOCUS FOR US FOR MANY YEARS AND I THINK IF YOU LOOK AT WHERE WE SPEND A LOT OF OUR MONEY IN THE LAST FEW YEARS, WE’VE BEEN VERY ACTIVE IN INDIA, FOR EXAMPLE AND WE SPENT PROBABLY MOST OF OUR FREE CAPITAL IN INDIA BECAUSE IT’S BEEN SUCH A TREMENDOUS LEAP FROM ONLY 10 OR 15 MILLION INTERNET USERS 8 YEARS AGO TO ALMOST 500 MILLION NOW. AND WE ARE LOOKING AT, WE ARE LOOKING FOR THOSE BREAKOUT OPPORTUNITIES. SO THAT IS WHERE WE WILL PROBABLY SPEND MOST OF THE CAPITAL GOING FORWARD. >>OKAY, DO YOU THINK THAT YOU MAY EVER FIND AN OPPORTUNITY LIKE 10 SENT AGAIN? YOU MUST WAKE UP EVERY DAY AND ASK THAT, WHAT IS THE NEXT 10 SENT. >>OR DO YOU THINK WE ARE PAST THAT PERIOD? WE’RE NOT GOING TO FIND THAT KIND OF HIGH GROWTH COMPANY ANYMORE IN THE TECH WORLD? >>WE LOOK AT HOW 10 SENT STACKS UP WITH OTHER INVESTMENTS THAT OTHERS HAVE DONE, NOT SO MUCH OURSELVES, BUT WE BELIEVE IT IS PROBABLY THE BEST INTERNET INVESTMENT ANYONE IS DONE. ANYONE IS LOOKING FOR THE NEXT 10 SENT. >>IT’S A VERY ASPERS LIKE COMEDY. >>IF YOU LOOK AT SOME OF THE COMPANIES, TO TREMENDOUS GROWTH OPPORTUNITY. IF IT’S AS GOOD AS 10 SENT, WHO KNOWS. ON THE CURRENT e-COMMERCE PORTFOLIO, WE DELIVERED AN ANNUAL RETURN OF 10% WHICH IS WELL ABOVE MARKET. IF WE KEEP DOING THAT, I THINK WE SHOULD BE PRETTY HAPPY. >>I’VE JUST A COUPLE MINUTES, I WANT TO MENTION, I MENTIONED SOFTBANK FOR A REASON. YOU GUYS HAVE BEEN COMPARED TO THEM BEFORE. YOU ARE SOMEWHAT SIMILAR. YOU ARE OUT OF, OUTSIDE OF THE PLACES THAT YOU ARE INVESTING, YOU HAVE A LARGE SUM OF MONEY AND YOU HAVE AN ENGINE BEHIND YOU WHICH IS THESE FANTASTIC INVESTMENTS OUT OF CHINA. HOW DO YOU SEE THEIR INVESTMENT STRATEGY? THEY’VE DONE REALLY INTERESTING THINGS WITH THE VISION FUND AND SOME WOULD SAY CONTROVERSIAL. IN THE CURRENT MOMENT. WHAT DO YOU SEE? CAN YOU SEE YOURSELVES EVER TRYING TO DO SOMETHING LIKE THAT IN TERMS OF FORMING A FUND AND HELP WITH REALLY BIG INVESTMENTS INTO THINGS, USING YOUR ACUMEN AND SO ON? >>I HAVE MET MARS A AND MANY OF HIS TEAM ON SEVERAL OCCASIONS DURING THE YEARS AND I THINK THEY ARE AN IMPRESSIVE GROUP OF PEOPLE. AND I THINK WHAT THEY’VE DONE IS CERTAINLY UNPRECEDENTED. AND I THINK IT IS HAD A BIG IMPACT ON THE INDUSTRY. AS WE MENTIONED EARLIER, WE ARE NOT A FUND AND WE CAN INVEST FOR 20 YEARS AND I THINK THAT ACTUALLY HELPS. IT ALLOWS YOU TO THINK OVER A LONG AMOUNT OF TIME, WHAT WILL BE THE THINGS THAT GREAT VALUE? AND I THINK FOOD DELIVERY COULD TAKE A LOT OF TIME TO GET TO ITS FULL POTENTIAL. I THINK IT IS 20 X FROM HERE. I THINK THEY ARE GREAT INVESTORS, THEY ARE VERY BROAD IN THEIR APPROACH AND WE ARE TYPICALLY MORE FOCUSED, WE INVEST IN THE AREAS WE REALLY KNOW, AND THAT ALSO I THINK IS FOR US THE RIGHT THING TO DO. >>YOU THINK YOU MIGHT EVER TRY TO TAKE A PAGE OUT OF SOFTBANK’S BOOK AND TRY TO DO THE APPROACH THAT THEY’VE DONE? OR DO YOU THINK THAT’S BEEN A BAD APPROACH? >>I DON’T THINK IT FITS US. ONE OF THE THINGS THAT SERVICE REALLY WELL IS TO BUILD UP EXPERTISE, BUT THE FINE THINGS WE THINK ARE INTERESTING AND BUILD UP EXPERTISE AND GO BIGGER, BUT STAY IN AN AREA THAT YOU REALLY HAVE A GOOD VIEW ON AND I COULDN’T DEPLOY HUNDRED BILLION DOLLARS IN THE THINGS I DON’T UNDERSTAND. >>NO PLANS FOR FUNDS OF THOSE KINDS? >>DO YOU THINK THEY’VE DONE THE RIGHT THING BY DOING IT THE WAY THEY’VE DONE IT? OR WILL IT COME TO BITE THEM WITH WE WORK? >>IT IS HARD TO SPEAK ABOUT THE SPECIFIC INVESTMENT. WE HAVE CO-INVESTED IN FLIP CARD. AND I THINK WE HAD THE SAME VERSION OF AN ATTRACTIVE INDIAN MARKET WITH HIGH GROWTH AND GREAT FOUNDERS AND THAT IS, I THINK THAT’S WHERE WE OVERLAP. WE ARE VERY MUCH THE SAME VIEW AND THEY HAVE TAKEN A BROADER APPROACH AND A BIGGER A VOLUME APPROACH AND I HOPE IT WORKS OUT. >>WE ARE OUT OF TIME, THANK YOU SO MUCH, I APPRECIATE IT. THANK YOU EVERYBODY. THANK YOU. [ APPLAUSE ] >>WELL DONE. ON THE EXTRA CRUNCH STATE, WE HAVE HOW TO BE A POSITIVE FORCE IN THE GIG ECONOMY, THAT SHOULD BE SELF INSPIRATORY, WE HAVE AMANDA ON THAT, THE FOUNDER AND CEO OF GIRL GAZING AND THE EXECUTIVE DIRECTOR OF WORKING PARTNERSHIPS USA. IF YOU WANT TO CHECK THAT OUT, NOW IS THE TIME. HERE ON THE MAIN STAGE, PLEASE WELCOME ASSISTANT DIRECTOR FOR CYBER SECURITY AT THE DEPARTMENT OF HOMELAND SECURITY JEANETTE MAN FRONT AND YOUR MODERATOR, ZACH WHITAKER, A WARM WELCOME. [ APPLAUSE ] >>HELLO AGAIN, IT’S BEEN A WHILE. IT’S BEEN 20 MINUTES. A WARM WELCOME TO YOU. AND YOU ARE THE MOST SENIOR CYBER SECURITY OFFICIAL WE HAVE AT DISRUPT THIS YEAR. WE ARE THRILLED ABOUT OUR AGENCY, BUT WE ARE SPECIFICALLY DESIGNED TO WORK WITH THE PRIVATE SECTOR. >>WHAT KIND OF THREATS HAVE YOU SEEN OVER THE LAST YEAR? HOW HAS THAT CHANGED? >>IT AN DEPENDS ON WHAT YOU’RE TALKING ABOUT. A LOT OF — AT A HIGH LEVEL, WE FOCUS ON IS ON ONE HAND, WE’RE VERY INVOLVED IN PROTECTING FEDERAL NETWORKS. SO EVERYTHING FROM, YOU KNOW, IF YOU THINK ABOUT THE DATA BASE THAT HOUSES EVERYBODY’S SOCIAL SECURITY NUMBERS TO OUR IMMIGRATION SYSTEMS TO YOUR, YOU KNOW, SCHOOL FINANCIAL AID FORMS. THERE’S A LOT OF INFORMATION THAT THE GOVERNMENT HOLDS. WE DO A LOT OF WORK WITH THAT. ALL THE WAY TO CRITICAL INFRASTRUCTURE. SO, YOU KNOW, TRYING TO PREVENT NATION STATES FROM GETTING INTO OUR ELECTION SYSTEMS, OUR ELECTRICITY, OUR FINANCIAL SYSTEMS, AND SO IT’S A BROAD SORT OF SWATH THAT WE COVER. THE BIGGEST THING I AM REALLY PROUD OF WE ACCOMPLISHED OVER THE LAST YEAR IS WE RELEASED SOMETHING CALLED THE NATIONAL CRITICAL FUNCTIONS. AND THIS IS REALLY IMPORTANT, BECAUSE IN CYBER SECURITY, ESPECIALLY IN D.C., WHICH IS, YOU KNOW, SORT OF A UNIQUE PLACE, HAS UNIQUE CONVERSATIONS ABOUT TECHNOLOGY AND CYBER SECURITY, AND IT CAN GET VERY — IT CAN GET VERY BROAD — AND OVER THE YEARS, WHAT WE REALLY STARTED TO REALIZE IS WE NEEDED TO DEFINE WHAT IT WAS WE’RE ACTUALLY DEFENDING. SO IT’S NOT SORT OF A SPECIFIC INDUSTRY, NECESSARILY, WHICH WAS THE BIG SHIFT. AND ELECTIONS REALLY TAUGHT US THIS, IS WHEN YOU HAVE AN ADVERSARY THAT’S SEEKING TO UNDERMINE THE CONFIDENCE IN OUR DEMOCRATIC INSTITUTIONS, IN SOME WAYS, THEY’RE DOING IT THROUGH SORT OF TRADITIONAL HACKING. BUT THEN THERE’S A LOT OF OTHER WAYS THAT WE TRY TO ACCOMPLISH OUR GOALS. AND SO COMING UP WITH THESE NATIONAL CRITICAL FUNCTIONS, WHICH IS PUBLIC AND COVERS EVERYTHING FROM THINKING ABOUT HOW WE ARE TRYING TO DEFEND THE INTERNET ECOTO BROADER AREAS. >>YOU MENTIONED THE NATION STATES ETC. THE U.S. FACES. YOU HAVE RUSSIA, IRAN, CHINA. WHAT DOES IT MOON TO BUILD BETTER CYBER DEFENSES AGAINST NATION STATE ATTACKS? >>THERE IS AN ELEMENT OF, YOU KNOW, BUILDING THE ACTUALLY TECHNOLOGY DIFFERENCES. THAT’S IMPORTANT. WHEN YOU THINK ABOUT A LOT OF THESE INSTITUTIONS THAT ARE THE TARGETS OF SOME OF THESE NATION STATES, SOME OF THEM HAVE A FAIR AMOUNT OF RESOURCES AT THEIR DISPOSAL. MANY OF THEM DO NOT. MANY ARE RUN BY STATE AND LOCAL ORGANIZATIONS, AND SO THEY ARE OFTEN THE LEAST ABLE TO PROCURE A LOT OF THESE SORT OF SEXY CYBER SECURITY TECHNOLOGIES PEOPLE LIKE TO TALK ABOUT. SO THERE IS A COMPONENT OF, YOU KNOW, HOW DO WE WORK WITH THE MARKET TO BUILD MORE SECURE SOLUTIONS, PARTICULARLY IN INDUSTRIAL CONTROL SYSTEMS, THE SPACE THAT WE WORK IN A LOT. BUT THEN THERE’S ALSO — AND REALLY, WHAT WE’VE LEARNED OVER THE LAST COUPLE OF YEARS IN PARTICULAR, IT’S ALSO ABOUT BUILDING A MORE RESILIENT AND AWARE PUBLIC. MUCH OF OUR INSTITUTIONS ARE BUILT ON TRUST, AND ADVERSARIES HAVE LEARNED HOW THEY CAN MANIPULATE THAT TRUST. NOT JUST SORT OF A TECHNOLOGY THING WE HAVE TO APPROACH, IT’S REALLY THESE SORT OF BROADER TRUST ISSUES. AND IMPORTANTLY, FOR THE FEDERAL GOVERNMENT, YOU KNOW, HOW DO WE GET INFORMATION OUT INTO THE PUBLIC, BUT ALSO HOW DO WE GET IT TO THOSE WHO OWN THOSE SYSTEMS WHO CAN DO SOMETHING ABOUT THE THREAT. >>SO YOU HAVE QUITE AN INTERESTING JOB. YOU HAVE AN AGENCY DOING A LOT OF WORK. YOU KNOW, MOST PEOPLE HAVE A 9 TO 5 JOB. I DON’T. I GO KNOW CYBER SECURITY IS NEVER ENDING. SOME PEOPLE GO HOME AND HAVE A BEER. I DON’T GET TO DO THAT. FOR YOU, IS IT EVER QUIET, OR IS IT JUST LUKE DRINKING FROM A FIRE HOSE? >>IT’S — YOU KNOW, IT’S RELATIVE. I’VE BEEN DOING THIS NOW A REALLY LONG TIME. I WAS IN THE ARMY FOR SEVERAL YEARS. WHAT I’VE FORCED MYSELF TO DO IS, YOU’RE IN THIS FOR THE LONG HAUL. THERE IS ALWAYS SOMETHING GOING ON. THERE IS ALWAYS A BREACH. THERE ARE ALWAYS REPORTERS REPORTING ON THINGS YOU HAVE TO DEAL WITH. >>THOSE PESKY REPORTERS. >>SO THERE’S ALWAYS SOMETHING GOING ON. I THINK IT’S REALLY IMPORTANT — YOU KNOW, I HAVE AN AMAZING TEAM OF SEVERAL HUNDRED PEOPLE THAT — YOU KNOW, WE DO HAVE 24/7 ORGANIZATIONS, AND IT’S ABOUT PUTTING THE TRUST IN THE TEAM. IT’S RECOGNIZING THAT EVERY DAY CAN’T BE THAT SORT OF MOST URGENT FIRE HOSE. YOU’VE GOT TO SAVE IT FOR WHEN THINGS ARE REALLY BAD. >>SO, YOU KNOW, YOU’VE BEEN IN GOVERNMENT FOR, YOU KNOW, OVER A DECADE, YOU KNOW. AND SO — YOU KNOW, THE U.S. GOVERNMENT HAS A BIT OF A SKILLS SHORTAGE, YOU KNOW. THE PRIVATE INDUSTRY IS — YOU KNOW ISSUE PAYS MORE. NATIONAL SECURITY CLEARANCE TAKES AWHILE. IS IT A NATIONAL SECURITY RISK WHILE THE U.S. GOVERNMENT STRUGGLES IN PLACES TO COMPETE WITH PRIVATE INDUSTRY? >>I WOULD SAY IT’S BROADER. IT’S A NATIONAL SECURITY RISK THAT WE DON’T HAVE THE TALENT REGARDLESS OF GOVERNMENT OR THE PRIVATE SECTOR. WE DON’T HAVE ENOUGH — YOU KNOW, THERE’S A LOT OF PEOPLE THAT TALK ABOUT, YOU KNOW, THE TECH SHORTAGE OVERALL. BUT PARTICULARLY THE SECURITY, IT SUFFERS EVEN MORE. AND WE HAVE A MASSIVE SHORTAGE WE ARE EXPECTING WILL GROW LARGER. SO WE ACTUALLY SPEND A LOT OF TIME INVESTING IN EVEN K THROUGH 12 CURRICULUM. WE HAVE A SCHOLARSHIP PROGRAM THAT WE PUT IN PLACE. AND I THINK — WE’RE TRYING TO CHANGE THE WAY THAT PEOPLE THINK ABOUT WORKING WITH THE GOVERNMENT, TOO. A LOT OF TIMES HISTORICALLY, PEOPLE THINK YOU GO TO THE GOVERNMENT. THEN YOU’VE GOT 30 YEARS. YOU CAN — YOU HAVE YOUR RETIREMENT PAYCHECK. THAT’S FINE. THAT’S GREAT IF PEOPLE WANT TO DO THAT. BUT I ALSO RECOGNIZE THAT THERE’S PEOPLE THAT, YOU KNOW, PAY FOR A SCHOLARSHIP. THEY COME WORK FOR US FOR THREE TO FIVE YEARS. WE TRAIN THEM. THEY’RE AWESOME. BUT THEN THEY GO, AND THEY WORK IN THE PRIVATE SECTOR FOR A FEW YEARS, AND MAYBE AFTER THEIR KIDS ARE DONE WITH COLLEGE, THEY CAN COME BACK AND WORK FOR US. BUT I THINK — SOME PEOPLE >>REFEREE: TO THAT IN A NEGATIVE WAY. I THINK IT BUILDS A COMMUNITY OF PEOPLE OF SHARED SORT OF EXPERIENCE. THEY UNDERSTAND WHAT IT’S LIKE ON THE GOVERNMENT SIDE. THEY UNDERSTAND EVALUATE’S LIKE IN THE PRIVATE SECTOR. IN SECURITY, WE’RE REALLY ALL TRYING TO DO THE SAME THINGS. AND SO THAT’S THE CULTURE. AND WE ACTUALLY WILL BE DEBUTING IN THE NEXT YEAR AN ENTIRELY NEW WORK FORCE PROGRAM THAT’S REALLY MODELED AFTER HOW TECH COMPANIES RECRUIT AND RETAIN INDIVIDUALS, AND SO WE’RE REALLY TRYING TO CHANGE THE NATURE OVERALL OF GETTING PEOPLE MORE INTO SECURITY OVERALL, BUT ALSO PARTICULARLY ENCOURAGE THEM TO WORK FOR US, EVEN IF IT’S ONLY FOR A COUPLE YEARS. >>SO S,SA, LOT OF BUSINESSES WITH EMERGING THREATS, SOME HAVE COMPLAINED THEY’RE NOT GETTING THE INTELLIGENCE THAT THEY NEED. WHAT CAN THE GOVERNMENT DO MORE TO, YOU KNOW, PROTECT PRIVATE BUSINESSES? >>SO I WOULD SAY, FIRST OF ALL, PRIVATE BUSINESSES, THERE IS AN ACCOUNTABILITY. THEY NEED TO BE RESPONSIBLE FOR PROTECTING THEMSELVES. OFTENTIMES, WE DO A LOT OF INCIDENT RESPONSE — AND WE SEE A LOT OF PEOPLE THAT WEREN’T DOING REALLY SYSTEM OF THE BASICS. AND OFTENTIMES, IT’S BECAUSE THEY DIDN’T THINK THEY HAD ANYTHING OF VALUE THAT SOMEBODY WOULD BE AFTER. THEY DIDN’T REALLY THINK ABOUT THE FACT THEY HAVE A BUSINESS RELATIONSHIP WITH — MAYBE THEY WEREN’T THE TARGET. MAYBE THEY WERE JUST THE STAGE TO GET TO THE ULTIMATE TARGET. OR THEY DON’T THINK ABOUT THE FACT THAT, YOU KNOW, THEIR PRODUCT IS COLLECTING A LOT OF PRIVATE INFORMATION THAT A CRIMINAL COULD MONOTIES, OR A NATION STATE COULD EVEN COLLECT. SO THAT’S KIND OF PART OF IT. AND WE’RE REALLY TRYING — AND I DON’T KNOW IF A LOT OF PEOPLE ARE AWARE, BUT THIS IS NATIONAL CYBER AWARENESS MONTH. THIS IS OCTOBER. SO CONSIDER YOURSELF ALL AWARE. AND — BUT ONE OF THE THINGS WE’RE TRYING TO REALLY FOCUS ON, PARTICULARLY IN OCTOBER, IS RAISING THE LEVEL OF PUBLIC AWARENESS. EVERYBODY NOW INTERACTS WITH THE INTERNET OR A COMPUTER IN A NETWORK SYSTEM IN SOME WAY. SO HOW CAN YOU BE ACCOUNTABLE FOR THAT? HOW DO YOU ACT AS A RESPONSIBLE CONSUMER AS AN ONLINE CITIZEN IN YOUR BUSINESS, AND SO, IN TERMS OF THAT, I THINK IT’S VERY IMPORTANT. I ALSO THINK A LOT OF PEOPLE THINK CYBER SECURITY CAN BE FIXED BY BETTER AND MORE INTELLIGENCE. INTELLIGENCE IS NOT GOING TO SOLVE ANY SECURITY PROBLEM, MUCH LESS CYBER SECURITY, AND A LOT OF IT, WE’D LIKE TO SEE MORE MARKET SOLUTIONS, YOU KNOW, MORE AUTOMATION, MORE ORCHESTRATION OF CAPABILITIES THAT ARE AT A PRICE POINT THAT, YOU KNOW, MORE ORGANIZATIONS CAN AFFORD. AND I THINK THE GOVERNMENT HAS AN OPPORTUNITY TO SORT OF PUSH SOME OF THAT, MORE STANDARDS. WE DO NEED TO GET MORE INTELLIGENCE OUT. I WILL SAY, WE NEED TO DO BETTER ON THAT. WHEN WE HAVE INTELLIGENCE, WE NEED TO GOT IT TO ORGANIZATIONS. IT NEEDS TO BE IN A WAY THEY CAN DO SOMETHING WITH IT. I CAN’T BE JUST, “HEY, HERE’S THIS IP ADDRESS THAT’S BAD.” IT NEEDS TO BE HERE WHAT’S GOING ON. HERE’S WHAT WE UNDERSTAND. THAT’S OFTEN VERY HARD FOR GOVERNMENT TO RELEASE THAT INFORMATION. >>WHAT CAN IMPROVE THAT INTELLIGENCE-SHARING RELATIONSHIP? IT GOES BOTH WAYS. YOU HAVE COMPANIES LIKE FACEBOOK WHO COMPLAINED THAT GOING UP TO THE 2016 ELECTION, THEY WEREN’T GIVEN ENOUGH INFORMATION. IT DOES GO BOTH WAYS. HOW CAN THE GOVERNMENT PROACTIVELY TRY TO IMPROVE THAT RELATIONSHIP? >>WELL, I THINK THERE’S A FEW THINGS, AND THOSE ARE VALID COMPLAINTS, AND WE’VE SPENT A LOT OF TIME. A LOT OF WHAT WE DO IS WE’RE THE POINT FOR SURING THAT INFORMATION, EVEN IF WE’RE NOT THE ONES THAT ORIGINALLY COLLECTED IT. AND WHAT WE FOUND IS THAT YOU’LL HAVE — AND YOU HEARD FROM THE FORMER DIRECTOR OF NSA. THEY HAVE A PIECE OF THE PUZZLE. BUT WHERE WE SORT OF SEE OURSELVES IS THAT’S ONE PART OF IT. BUT IT’S MISSING CONTEXT. YOU KNOW, WE’RE DOING A BUNCH OF WORKS WORK WITH THE BANKS NOW IN TALKING ABOUT THESE NATIONAL CRITICAL FUNCTIONS, AND, YOU KNOW, UNDERSTANDING HOW THE WHOLESALE PAYMENT SYSTEM WORKS. AND, YOU KNOW, TALKING ABOUT THE TRILLIONS OF DOLLARS THE BANKS ARE CLEARING EVERY DAY. THAT’S SOMETHING THAT AN ADVERSARY WOULD PROBABLY WANT TO DISRUPT OR DEGRADE OR JUST GIVE THE PERCEPTION THEY’RE DOING THAT. SO IT’S NOT SO MUCH — AND THE GOVERNMENT NEEDS TO HAVE THAT UNDERSTANDING OF HOW THOSE SYSTEMS WORK IN A WAY — IN A LEVEL OF DEPTH YOU CAN THEN TURN TO THE COLLECTORS AND SAY, “HEY, CAN YOU TELL ME IF YOU’VE GOT ANYBODY LOOKING TO COLLECT AGAINST THIS TYPE OF SOFTWARE THAT THEY’RE USING, AS AN EXAMPLE.” THAT THEN WOULD BE USEFUL INFORMATION. THAT WOULD BE A POTENTIAL INDICATOR OR WARNING SOMEBODY IS TRYING TO DO SOMETHING. IN THE CASE OF, YOU KNOW, FOREIGN INFLUENCE, WHEN YOU’RE TALKING ABOUT WITH FACEBOOK, WE NEED TO — THAT’S POTENTIAL, YOU KNOW, INFORMATION THAT IS OFTEN SOME OF THE MOST SENSITIVE INFORMATION. WE HAVE TO BREAK DOWN A LOT OF THOSE BARRIERS, AND WE HAVE TO THINK ABOUT THE PRIVATE SECTOR AS A PARTNER IN INTELLIGENCE SHARING, WHICH IS A BIG SHIFT FOR THE GOVERNMENT. >>SO TWO YEARS AGO, IT WAS WIDELY REPORTED THAT THE NSA MISTAKENLY LET GO OF ITS PRIZED HACKING TOOLS, WHICH WERE USED TO LAUNCH AND SPREAD THE WANNACRY RAN SOMEWEAR ATTACK, WHICH I THINK MOST PEOPLE WERE AWARE OF THAT HAPPENING. IT WAS QUITE A DAMAGING EVENT. WHAT IS THE U.S. DING TO PREVENT ANOTHER PUBLIC WANNA CRY STYLE ATTACK? >>I DON’T KNOW THAT WE COULD EVER PREVENT SOMETHING LIKE THAT, YOU KNOW, WHERE YOU JUST HAVE SOMETHING THAT COMPLETELY MANIFESTS ITSELF AS A WORM, AND KIND OF — EVEN I THINK THE ORIGINAL PERPETRATORS OF THAT DIDN’T EXPECT PROBABLY THAT SORT OF IMPACT. WHAT WE ARE — WE DO WANT TO PREVENT, AND THERE’S — YOU KNOW, THERE’S A LOT OF THINGS ON THE PREPAREDNESS, THE PREVENTION WE HAVE ALREADY TALKED ABOUT IN TERMS OF, FRANKLY, THE DUMBING YOUR PATCHES, SOME OF THOSE KIND OF BASIC THINGS THAT WOULD HAVE PREVENTED A FAIR AMOUNT OF PEOPLE FROM BEING A VICTIM OF THAT. BUT I ALSO THINK IT’S IMPORTANT TO, YOU KNOW, BUILD MORE RESILIENCE IN OUR SYSTEMS, TO — WITH TALK A LOT ABOUT MITIGATING THE CONSEQUENCES. SO ACKNOWLEDGE THAT THESE BAD THINGS ARE GOING TO HAPPEN, BUT HOW CAN WE BE BETTER PREPARED TO WORK TOGETHER. SO FOR W,NNACRY, WHEN — AND I’LL TALK ABOUT THIS A LITTLE BIT. BUT NOT A LOT OF PEOPLE REALLY OATH UNDERSTAND THE YEARS OF WORK HALF GONE INTO BUILDING GLOBAL ALLIANCES. I RUN THE UNITED STATES CRT, COMPUTER RESPONSE TEAM. MOST COUNTRIES HAVE SORT OF A VERSION OF THAT. WHEN WANNACRY STARTED IN ASIA, WE WERE GETTING INFORMATION FROM OUR PARTNERS IN ASIA ABOUT WHAT WAS GOING ON. THEY WERE PASSING INFORMATION TO US. FOR THE U.S., FOR REALLY THAT KIND OF ENTIRE FIRST HALF OF THE DAY, WE WERE GETTING ADVANCED INFORMATION BECAUSE OF THE THOSE PALMS WE HAD BUILT OVERSEAS, AND THOSE — AND THOSE NATIONAL CRTS WERE GETTING INFORMATION FROM THEIR LOCAL BUSINESSES, WHO WERE BEING ATTACKED. YOU KNOW, LUCKILY, THERE WAS AN ENTERPRISING INDIVIDUAL WHO WAS ABLE TO FIND A WAY TO KILL IT, AND IT DIDN’T IMPACT THE U.S. AS MUCH. BUT WHAT WE REALLY RECOGNIZED IS THAT WE NEEDED TO HAVE THOSE SORTS OF MECHANISMS, BUT MUCH MORE ROBUST IN THE UNITED STATES TO THINK ABOUT, LIKE, HOW — HOW DO YOU MOBILIZE INDUSTRY AND GOVERNMENT ALLIES TO COMBAT SOMETHING LIKE THIS AS IT’S EMERGING. SO SINCE THEN, WE’VE BEEN BUILDING MORE OF THOSE PLANS. WE HAVE A LOT OF REPRESENTATIVES FROM COMPANIES THAT SIT ON OUR FLOOR WITH US, AND WE WORK THROUGH THESE THINGS TOGETHER SO THAT IF WE HAVE THESE SORTS OF SCENARIOS COME UP, THAT WE’RE READY TO RESPOND QUICKLY, EVEN IF WE DIDN’T PREVENT IT. >>SO — YOU HAVE THE START OF AND LARGE BUSINESSES ALIKE, HAVE ONE THING IN COMMON, AND THAT’S THEY VERY MUCH RELY ON THE SUPPLY CHAIN, WHICH IS SOMETHING I KNOW CYS IS VERY INVOLVED IN. IT’S WHERE BUSINESSES GET TECHNOLOGIES FROM, THEIR SERVICES, HARDWARE, SOFTWARE. WHAT KIND OF THREATS DO YOU SEE, YOU KNOW, AGAINST THE GLOBAL SUPPLY CHAIN? OF COURSE, IT’S — AS I SAID, IT’S A DIFFICULT QUESTION. EVERY SUPPLY CHAIN IS DIFFERENT. WHAT KIND OF THREATS DO YOU SEE? >>WELL, THERE’S A LOT OF DIFFERENT — THERE’S A LOT OF DIFFERENT THREATS. YOU SEE A LOT OF, YOU KNOW, FOREIGN GOVERNMENTS THAT ARE SORT OF FINDING CLEVER WAYS TO MASK THEIR INFLUENCE IN INVESTMENTS, AND IN FINDING WAYS TO MANEUVER AROUND THE WAYS THAT THE GOVERNMENT TRADITIONALLY CAN HAVE SOME ABILITY BLOCK INVESTMENTS THAT WE’RE CONCERNED ABOUT. I WOULD SAY THE BEST ADVICE I COULD GIVE WOULD BE HOW WE THOUGHT ABOUT KAPURSKY. FOR MANY, MANY YEARS, THERE WAS A LOT OF CONVERSATION ABOUT, YOU KNOW, SHOULD WE USE IT, SHOULD WE NOT. AND I WAS VERY FRUSTRATED, AND THIS GETS TO THE INTELLIGENCE THING, TOO, IS A LOT OF PEOPLE WANT INTELLIGENCE TO JUST GIVE THEM, “THIS IS THE RIGHT ANSWER.” AND THAT’S USUALLY NOT WHAT YOU’RE BEGINNING GET. AND SO WHAT WE DECIDED WITH K,SPERSKY IS WE WERE NOT COMFORTABLE WITH GOVERNMENT DATA BEING HOUSED IN A COUNTRY WHERE, WHETHER A COMPANY WANTED TO OR NOT, COULD BE REQUIRED TO HAND THAT DATA OVER TO THE SECURITY SERVICE. AND SO WE HAVE THE AUTHORITY TO ACTUALLY DIRECT FEDERAL AGENCIES TO TAKE ACTION. AND WE DECIDED TO DO IT PUBLICLY FOR DUE PROCESS REASONS. WE WANTED ANYBODY WHO WOULD BE POSSIBLY IMPACTED BY THIS DECISION TO REMOVE KASPURSKY. OUR THINKING WAS — AND I WOULD ENCOURAGE ANYBODY, WHEN YOU’RE THINKING ABOUT YOUR SUPPLY CHAIN, WHETHER THAT’S FROM A SOFTWARE, HARDWARE, BUSINESS RELATIONSHIP PERSPECTIVE, SORT OF THREE THINGS IN THAT WE THINK ABOUT, AND WILL CONTINUE TO THINK ABOUT FROM A BROAD NATIONAL POLICY, IS THE FIRST IS, LIKE, THE LAWS OF THE COUNTRY. AND KNOW THAT’S SOMETHING THAT A LOT OF PEOPLE DON’T WANT TO NECESSARILY TALK ABOUT. BUT THE LAWS OF THE COUNTRY WHERE THE DATA IS HOUSED OR TRANCE ITED OR WHERE THE COMPANY OPERATES, IT’S IMPORTANT TO CONSIDER. IF THERE’S NOT THAT JUDICIAL REVIEW AND, YOU KNOW, A COMPANY CAN BE COMPELLED, YOU WANT TO MAYBE CONSIDER, IS THAT PLACE WHERE I WANT MY DATA TO BE HELD? BUT THAT CAN’T BE THE ONLY THING THAT YOU CONSIDER, BECAUSE THAT’S NOT THE ECONOMY WE LIVE IN, AND I DON’T THINK IT MAKES SENSE JUST TO SORT OF SUDDENLY BAN ALL THINGS JUST BECAUSE IT COMES FROM ONE COUNTRY. SO WE TRY TO BE A LITTLE MORE NUANCED. THE SECOND THING IS REALLY TO THINK ABOUT WHAT SORT OF ACCESS DOES THAT PIECE OF, IN THIS CASE, SOFTWARE HAVE, YOU KNOW, AN ANTIVIRUS. THERE’S A FAIR AMOUNT OF ACCESS IT HAS TO YOUR COMPUTER AND YOUR DATA. AND SO THAT WAS — THAT REALLY IS THAT SECOND PART. THE LAST PART — THIS IS MORE FROM A NATIONAL PERSPECTIVE, IS WHAT’S THE MARKET PENETRATION. YOU KNOW, IF SOMETHING GETS THE FIRST TWO, BUT IT’S NOT SOMETHING THAT’S WIDELY USED IN THE U.S., THEN THAT’S PROBABLY NOT SOMETHING WE’RE GOING TO GET FIRED UP ABOUT. >>WE HAVE A LITTLE TIME LEFT. MY FINAL QUESTION IS, IS IT TRULY POSSIBLE TO SECURE THE SUPPLY CHAIN? AND HOW MUCH SHOULD GOVERNMENT? HOW MUCH SHOULD PRIVATE BUSINESSES TAKE RESPONSIBILITY FOR IT? >>I DON’T THINK IT’S POSSIBLE, TO 100%, SECURE ANYTHING. AND SO WE TALK A LOT ABOUT RISK MANAGEMENT. AND, YOU KNOW, WE SEE OURSELVES AS RISK ADVISERS AND RISK MANAGERS. I THINK EVERYBODY HAS TO BE A RISK MANAGER IN YOUR OWN ORGANIZATION. YOU HAVE TO UNDERSTAND WHAT’S MOST IMPORTANT. AND YOU HAVE — AND JUST, YOU KNOW, UNDERSTAND THE RISK YOU’RE TAKING ON IF YOU AWARE A COMPANY, IF YOU’RE ENJOYING — YOU KNOW,, HAVE INVESTMENT FROM, YOU KNOW, CERTAIN INDIVIDUALS OR ORGANIZATIONS. UNDERSTAND WHAT THAT — WHAT THAT RISK ACTUALLY IS. BUT THEN, MAKE THE DECISIONS BASED OFF OF YOUR OWN RISK CALCULUS, AND THAT’S HOW I THINK OF THE BROADER SUPPLY CHAIN, IS, YOU KNOW, A LOT OF PEOPLE ARE TALKING ABOUT 5G AND ALL THE CHALLENGES THERE, AND IT’S — WE HAVE TO THINK ABOUT IT FROM A NATIONAL PERSPECTIVE IS, IN MANY CASES, WE’VE OUTSOURCED THE MANUFACTURING OF CERTAIN CORRESPONDENTS OF OUR COMMUNICATIONS SYSTEMS OUTSIDE OF THIS COUNTRY. AND THAT’S THE ECONOMICS OF WHERE WE ARE, AND WE CAN’T SPIN THAT AROUND ON A DIME. SO WE HAVE TO THINK ABOUT HOW DO WE CREATE MORE TRUST AND TRANSPARENCY IN OUR SUPPLY CHAIN, AND AGAIN, I SAY “SUPPLY CHAIN” BROADLY, MEANING UT PRODUCTS AND SERVICES. SO THAT’S REALLY WHAT — MORE TRANSPARENCY, SO THAT ANYBODY CAN MAKE THAT RISK DECISION MORE BRADLEY AT THAT NATIONAL LEVEL, REALLY HAVING THAT UNDERSTANDING OF WHERE WE CAN’T ACCEPT RISK AND WHERE, FRANKLY, THERE’S AREAS WHERE YOU HAVE TO ACCEPT RISK. >>SADLY, THAT’S ALL THE TIME WE HAVE. THANK YOU SO MUCH. CHEERS. . >>>. >>>OH, HE MISSED. ALL RIGHT. OKAY. ON THE Q AND A STAGE, IF YOU HAVEN’T HAD ENOUGH SECURITY TALK IN YOUR LIFE, THEN THAT’S WHERE ISSUE BE HEADED NOW. AT 3:30, WE WILL HAVE SECURING YOUR START UP WITH JENNIFER STEVENS, DOUG SOM FROM DEWESS SECURITY. IF YOU WANT TO CHECK THAT OUT, NOW IS THE TIME. GET YOUR QUESTIONS SUBMITTED. BUT NOW WE’RE GOING TO BE TALKING A LITTLE BIT ABOUT WEDDINGS. ANYBODY MARRIED IN THE AUDIENCE? KEEP YOUR HAND RAISED IF YOU ACTUALLY PLANNED THAT WEDDING. SO YOU KNOW WHAT’S UP, YEAH. OUR NEXT — OUR NEXT GUEST KNOWS FOR SURE WHAT’S UP. SHE’S BUILDING TOOLS TO FIX A LOT OF THE PROBLEMS INVOLVED IN THAT. SO PLEASE WELCOME TO THE STAGE FROM Z,LA, THE COFOUNDER AND CEO SHANNON MAU. WARM WELCOME, PLEASE. . >>CAN YOU GUYS HEAR ME? EXCELLENT. >>HI, SHANNON. >>HI. >>THANK YOU VERY MUCH FOR COMING ON, AND I HAVE JUST ONE QUESTION FOR YOU >>YES. >>ARE YOU MARRY ME? JUST KIDDING. >>MAYBE. >>NO. ANYWAY, WELCOME. THANK YOU FOR COMING. YOU’VE GOT AN AMAZING BUSINESS GOING ZOLA, WEDDING WEB SITE, FOR WEDDING PLANNING, RIGHT? YOU GUYS ARE HUGE. ABSOLUTELY MASSIVE. YOU STARTED IN WHEN? 201, RIGHT? >>YEAH, 2013. ALSO KNOWN AS THE YEAR ALL MY FRIENDS GOT MARRIED AT EXACTLY THE SAME TIME, AND I WAS GOING TO A LOT OF WEDDINGS THAT YEAR, SPENDING A LOT ON TRAVEL, PRESENTS, A LOT OF ANGST ON BOTH MY PART AND MY FRIENDS GETTING MARRIED PART. A LOT OF THESE WEDDING REGISTRIES THAT I’M BIG FROM SEEM OUTDATED, ANTIQUATED. I FEEL LIKE MYSELF AND MY COFOUNDER, WE COULD BUILD A MUCH BETTER PRODUCT FOR OUR FRIENDS GETTING MARRIED TODAY. >>SO YOU BUILT IT OUT OF A KIND OF PERSONAL EXPERIENCE? >>EXACTLY. >>AH, LIKE HOUSE? WHICH I ALWAYS THINK OF YOU GUYS AS A LITTLE, LIKE, HOUSE. SO THAT’S INTERESTING. >>YEAH. AND WE SHARE SOME COMMON INVESTORS. >>OH, WOW. >>WHO SEE THE ANALOGIES BETWEEN WHAT HOUSE HAS DOWN ON HOME RENOVATION, WE’RE DOING IN THE WEDDING SPACE. >>IT’S FUNNY THING, THOUGH, BECAUSE YOU POINTED OUT. THERE WERE, LIKE, A, THEN, OF SITES UP THERE ALREADY WHEN YOU — WHEN YOU GUYS HIT THE MARKET. HOW WAS THAT? I MEAN, DID YOU — WAS THAT — DID THAT MEAN IT WAS ACTUALLY REALLY HARD TO GET USERS IN THE BEGINNING? HOW DID YOU CARVE OUT A PLACE FOR YOURSELF, IN WHAT’S A PRETTY ANTIQUATED MARKET? >>WELL, WE LOOKED AT NOW THE ENTIRE WEDDING PLANNING PROCESS, AND THOUGHT, WHY IS IT THAT ON AVERAGE, BEFORE ZOLA, A COUPLE HAD TO USE 20 DIFFERENT SITES TO PLAN ONE DAY. MANY OF THESE SITES OR APPS NOT EVEN BUILT FOR WEDDING PLANNING WHEN COUPLES TODAY WHO ARE THE MILLENNIAL GENERATION, THEY HAVE SO MUCH GREAT APPS AND PRODUCTS IN EVERY OTHER PART OF THINKER LIFE. AND THEY EXPECT A LOT MORE. AND SO WE THOUGHT, WHAT IF WE COULD BILL THE ULTIMATE GO TO SITE, AN APP WHERE COUPLES COULD PLAN EVERYTHING FOR THEIR ONE DAY IN THE ONE PLACE, AND LOW’S START WITH WEDDING REGISTRY, BECAUSE THAT’S WHAT WE KNOW. ‘S E COMMERCE RELATED. THAT’S WHERE WE ARE PARTICULARLY STRONG WITH THAT BACKGROUND. WE FOUND THAT SPACE ALONE WAS VALUABLE AND UNDERSERVED, AND WE COULD INNOVATE TO GIVE COUPLES WHAT THEY REALLY WANTED, WHETHER IT WAS PRODUCTS OR EXPERIENCES ON CASH IN A BEAUTIFUL REGISTRY OR IN THE ONE PLACE. >>RIGHT. SO YOU GUYS ARE — JUST TO MAKE THAT CLEAR, THE THING YOU’RE DOING THAT IS’S QUITE INTERESTING IS, YES, IT’S A MARKETPLACE, WHERE YES, YOU CAN REGISTER FOR SPECIFIC THINGS, LIKE TEA KETTLES, BUT YOU CAN ALSO DO OTHER THINGS, RIGHT? YOU DON’T HAVE TO REGISTER FOR ACTUAL OBJECTS, WHICH IS VERY IN KEEPING WITH HOW PEOPLE SHOP TODAY, RIGHT? >>THAT’S RIGHT. IT TURNS OUT TODAY’S COUPLES, ON AVERAGE, WE SEE WANT TO REGISTER FOR A MIX OF ALL THINGS, FROM TRADITIONAL THINGS LIKE KETTLES TO MORE PRODUCTS OF TODAY, LIKE A SONO SOUND SYSTEM, TO EXPERIENCES LUKE WINE TASTING. >>RIGHT. >>TO CASH. >>AND DO YOU DO GIFT CARDS AND STUFF LIKE THAT, TOO? >>WE ALSO DO THAT. >>VERY MODERN. SO ON THE SUBJECT OF MODERN, THOUGH, IT’S KIND OF AN INTERESTING THING. I MEAN, IT’S JUST — IT’S AMAZING, THE SUCCESS YOU’VE HAD, BUT ALSO SO SURPRISING, PARTLY BECAUSE OF THAT — THE FACT THAT, LIKE, WEDDING SITES WERE THE FIRST ONES TO HIT THE WEB WHEN THE WEB FIRST CAME INTO EXISTENCE, BUT ALSO BECAUSE MARRIAGE HAS CHANGED SO MUCH. YOU KNOW, I WAS LOOKING UP SOME STATS, AND IT’S — HALF OF ALL PEOPLE OVER 18 ARE MARRIED NOW, GET MARRIED QUICKLY. BUT IT’S GONE DOWN MASSIVELY IN THE U.S. LIKE, YOU KNOW, SINCE 1990. YOU’VE GOT ALL SORTS OF OTHER THINGS. THEY’RE GETTING MARRIED MUCH LATER. THESE PEOPLE THAT AREN’T GETTING MARRIED. THE TRADITIONAL MAN AND WOMAN HAS BEEN COMPLETELY THROWN OUT THE WINDOW. AND YET YOU STILL HAVE A PLACE THERE. SO ARE YOU GUYS, LIKE, CATERING TO ALL OF WHAT I’VE JUST DESCRIBED, OR WHAT? . >>YEAH, ABSOLUTELY. AND ONE OF THE THINGS, I THINK, MYSELF AND MY TEAM ARE MOST PROUD OF IS THAT WE BUILD PRODUCTS THAT SERVE ANY TYPE OF COUPLE, NO MATTER WHO THEY ARE, WHERE THEY LIVE WITHIN THE U.S., OR WHATEVER DEVICE THEY LIVE ON. AND WE DO SEE FOR SURE THAT COUPLES GETTING MARRIED TODAY ARE UNLIKE ANY PREVIOUS GENERATION. SO THE AVERAGE AGE OF COUPLE GETTING MARRIED TODAY IS MUCH OLDER. >>HOW OLD IS IT? >>IT’S ON AVERAGE 28 TO 30, WHEREAS JUST OUR PARENT’S GENERATION, THE AVERAGE AGE WAS MAYBE 21 TO 22. >>RIGHT. >>AND WHAT THAT MEANS IS THAT COUPLES TODAY, THEY LIVE TOGETHER BEFORE THEY GET MARRIED ON AVERAGE. THEY’RE BOTH WORKING. THEY BOTH HAVE A LOT OF — HAVE A LOT OF TIME TO THINK ABOUT WHAT MARRIAGE AND WEDDINGS MEAN TO THEM, AND SO, YOU KNOW, REALLY THE IDEA OF PERSONALIZING YOUR WEDDING AND YOUR MARRIAGE IS SO MUCH MORE IMPORTANT NOW, I THINK, BECAUSE PEOPLE GET THAT LEVEL OF PERSONALIZATION IN EVERY OTHER PART OF THEIR LIFE ONLINE. >>YEAH. ARE YOU GUYS AT ALL LOOKING AT JUST COUPLES WHO ARE SORT OF MAKING LIFETIME COMMITMENTS? IS THAT SOMETHING THAT YOU ALSO CATER FOR? >>WELL, WE — WE ARE HAPPY TO SERVE COUPLES. REALLY, WE THINK OF IT AS A LIFE STAGE. WHERE THEY ARE TRANSITIONING FROM A SUNG THE PERSON TO ENGAGED, MAKING A COMMITMENT TO EACH OTHER, AND TRANSITIONING INTO OFTEN A NEWLYWED HOME TOGETHER. >>OKAY. >>EXPENSIVE, STRESSFUL, JOYFUL, AND NOT A LOT OF THINGS TO-YOU MAKE THAT TRANSITION. >>OKAY. SO ANOTHER INTERESTING THING ABOUT YOUR SITE IS THIS MARKETPLACE MODEL THAT YOU’RE DOING. AT THE SAME TIME, YOU’VE GOT A SORT OF FREEDOMIUM. TO CREATE THOSE REGISTRIES IS TOTALLY FREE. OF COURSE, YOU MAKE SOME CONVERSION. YOU MAKE COMMISSIONS ON WHEN SOME OF THOSE REGISTRY ITEMS GET PURCHASED, BUT YOU’VE ALSO GOT THINGS LIKE INVITATION PLANNING AND SO ON. HOW DO YOU DRAW PEOPLE INTO MORE OF THE PAID PRODUCTS OF THE SITE, AND HOW MUCH OF AN ISSUE IS IT TO GET PEOPLE TO DO THINGS THAT DRIVE REVENUE FOR YOU GUYS? >>SO I SHOULD CLARIFY. OUR BUSINESS MODEL FOR OUR WEDDING REGISTRY SPECIFICALLY, THE BEST ANALOGY HERE IS IT’S A HYBRID OF AN E COMMERCE SITE AND A MARKETPLACE SITE IN THAT WE HAVE, ON ZOHA, OVER 800 BRANDS THAT WE WORK DIRECTLY WITH IN THE ZOLA STORE, OVER 80,000 PRODUCTS, AND WHILE, YOU KNOW, COUPLES CAN REGISTER FOR THEM, GUESTS CAN BUY THEM. IT’S LIKE ANY OTHER E COMMERCE SITE. AND WE MAKE MONEY THROUGH WHOLESALE RETAIL MARGIN AS ANY OTHER RETAILOR DOES. THE TWIST AROUND THE MARKETPLACE IS THAT WE DON’T HOLD INVENTORY, AND THERE’S 80,000 PRODUCTS. THAT ALLOWS US TO OFFER MUCH MORE THAN YOU MIGHT FIND ON A NORMAL SITE. SO THAT’S REGISTRY. AND THEN, WITH THE LAUNCH IF OUR NEWEST BUSINESS, IMITATIONS OF PAPER, THAT IS MORE SIMILAR TO A VERTICALLY INTEGRATED DATA C COMPANY, WHERE WE HAVE ZOLA BRANDED — >>YEAH. >>– INVITATIONS, AND COUPLES CAN PICK WHATEVER DESIGN THEY WANT, PRINT IT, CUSTOMIZE IT WITH THEIR GUEST LIST ON OUR SITE, WHICH IS FREE, AND THE WEDDING WEB SITE, WHICH IS FREE. THE IDEA HERE IS WE WANT TO OFFER TOOLS THAT PEOPLE EXPECT TO BE FREE FOR FREE, AND THEN THERE’S THINGS THEY’RE ALREADY PAYING FOR ON HUNDREDS OF OTHER SITES. WE WANT TO DO IT, IN AN EASIER WAY AT GREAT VALUE. >>ARE YOU FINING YOU’RE ABLE TO CONVERT THOSE PEOPLE FROM THE FREE AS PECKS INTO THE MONOTIZING ASPECTS? IS THAT A CHALLENGE FOR YOU GUYS? OR IS IT REALLY SIMPLE, BECAUSE ONCE SOMEBODY DECIDES TO GET MARRY, THEY’VE ESSENTIALLY BOUGHT INTO THE IDEA THEY’RE GOING TO BLOW 10 GRAND? >>WELL, THE REASON WE’VE EXPANDED INTO MANY OF THOSE NEW PRODUCTS IS BECAUSE OUR COUPLES HAVE BEEN ASKING US AND BEGGING US AND DEMANDING THAT WE DO IT. SO WE — WHEN WE SET OUT TO BUILD THE COMPANY, I DON’T THINK WE EVER THOUGHT, WE’RE GOING TO BE INVITATIONS PRINTER. BUT THE COUPLES SAID — WHO USE US FOR REGISTRY SAID, “I’D LOVE TO ALSO MAKE YOU MY WEDDING WEB SITE. I’D LOVE TO PRINT MY INVITATIONS, MY PLACE CARDS, MY MENUS WITH YOU AND THE SAME DESIGN. THAT’S WHAT DREW US. SO YES, MANY COUPLES ARE FOLLOWING US THROUGH THAT JOURNEY, BECAUSE THEY ASK FOR IT, AND FOR US TO SERVE THEM IN THAT WAY. >>OKAY. NOW, YOU GUYS TODAY ARE ANNOUNCING A NEW THING THAT YOU’RE ADDING TO EXTEND THAT EVEN FURTHER, WHICH IS THE SORT OF POST-WEDDING, HONEYMOONS, RIGHT? YOU WANT TO TELL US A LITTLE BIT ABOUT THAT? >>EXCITED TO ANNOUNCE TODAY THE LAUNCH OF OUR LATEST PRODUCT, WHICH IS OUR HONEYMOONS PRODUCT. THIS WAS REALLY BASED ON THE DEMAND OF ZOLA COUPLES, ASKING US TO HELP THEM ALSO PLAN, GET INSPIRATION FOR IT, AND BOOK THEIR HONEYMOON ALL IN THE ONE PLACE. >>AND THAT IS SOMETHING YOU WILL BE EXPANDING SORT OF OVER TIME TO INCLUDE FLIGHTS AND THINGS LIKE THAT, RIGHT? >>EXACTLY. SO AT LAUNCH, THIS IS NEXT MONTH, WE — YOU KNOW, WE ALREADY HAVE A WAITING LIST OF THOUSANDS OF ZOLA COUPLES, WHO HAVE PUT THEMSELVES ON OUR WAITING LIST TO USE THIS PRODUCT. AND THE WAY IT WORKS IS THAT, THROUGH OUR TECHNOLOGY AND OUR TEAM OF TRAVEL EXPERTS, COUPLES CAN TELL US, “THIS IS WHAT THEY WOULD LOVE TO DO FOR THEIR HONEYMOON, THIS IS THEIR GENERAL TRAVEL STYLE, BUDGET, DATES, AND THEN WE WILL SEND BACK AN ITINERARY, WHICH THEY CAN IT RATE AND BOOK WITH US FROM THERE. AT LAUNCH NEXT MONTH, IT WILL BE FOCUSED FIRST AND FOREMOST ON ACCOMMODATION OF EXPERIENCES. THEN, OVERTIME, WE WOULD AIM TO HELP EVERYTHING YOU NEED TO DO FOR YOUR HONEYMOON. >>ONCE YOU DO THINGS LIKE FLIGHTS FOR THE COUPLES, THEN YOU’LL START TO OFFER THAT AS SOMETHING FOR, LIKE, FAMILIES AND FRIENDS WHO ARE COMING TO WEDDINGS AND STUFF, TOO, OR IS THAT — DO YOU SEE YOURSELF AS — IS THIS A CERTAIN FOOTHOLD TO CONTINUE EXPANDING DOPER INTO OTHER AREAS OF HOW YOU CAN SERVE TRAVEL NEEDS, OR — >>THAT’S EXACTLY RIGHT. I THINK THE MOST EXCITING THING FOR US AND SOMETHING THAT OUR CUSTOMERS HAVE DRAWN US INTO IS THAT WITH EACH OF OUR BUSINESSES WITHIN ZOLA, THEY HAVE SHOWN US THE PRODUCT AND THE BUSINESS ROAD MAP BASED ON THEIR OWN LIFE JOURNEY. SO IN THE SAME WAY THAT FOR OUR PAPER BUSINESS, WE STARTED FIRST WITH SAVE THE DATES, THEN INVITATIONS. THEY SAID, “HOW ABOUT MEN USE, PROGRAMS, THANK YOU CARDS, AND MORE AND MORE TIMES OF PAPER YOU SEND OUT. SAME WITH TRAVEL. WE WILL SEE HONEYMOONS, BUT THEN THERE’S A LOT OF DIFFERENT TYPES OF TRAVEL COUPLES AND THEIR GUESTS TAKE IN AND AROUND THE WEDDING, WHETHER IT’S BEFORE, DURING, OR AFTER THE WEDDING. AND WE’RE BUILDING THE TECHNOLOGY AND A TEAM TO SERVE THAT. >>OKAY. SO NOW, THIS IS SOMETHING THAT SLIGHTLY SHIFTS. IT’S SOMETHING I WANT TO TALK ABOUT A LITTLE LATER. BUT THE FACT IS THAT I — I LOOKED INTO WHAT THE AVERAGE LENGTH IS FOR PLANNING A WEDDING. >>YEAH. >>AND IT’S BETWEEN 13 RAND 18 MONTHS. >>YEAH. >>SO THAT EFFECTIVELY IMPLIES THAT THAT’S HOW LONG YOU WOULD HAVE A CUSTOMER. LIKE, A CUSTOMER WOULD ONLY BE YOUR CUSTOMER FOR ABOUT A YEAR TO A YEAR AND A HALF. HOW ARE YOU GUYS THINKING ABOUT THEM, AND THINKING ABOUT HOW YOU MIGHT POTENTIALLY EXPAND THAT? THAT’S NOT A LONG TIME TO BE A CUSTOMER. AMAZON, I’M GUESSING, HAS CUSTOMERS FOR A LOT LONGER THAN A YEAR. >>I THINK WHAT MANY PEOPLE ARE SURPRISED ABOUT, AND THEY CAN THINK ABOUT IT, OH, IT’S A SHORT TIME PERIOD, SO THEREFORE, IT MUST NOT BE A BIG MARKET. BUT WHAT IS SURPRISING TO MANY PEOPLE IS THAT THAT WEDDING TIME AND THAT MARKET ALONE IS $100 BILLION MARKET IN THE U.S., AND, YOU KNOW, WHERE SOME PEOPLE MIGHT SAY, “OH, YOU KNOW, 18 MONTH IS A SHORT TIME,” WE WOULD SAY, ACTUALLY, IT AUTO’S HIGHLY INTENSIVE, HIGH-SPEND, HIGH STRESS TIME. SO THAT’S A BIG OPPORTUNITY. AND WHEN YOU LOOK AT THE MARKET, EVER OTHER CATEGORY THAT IS FUELED BY MILLENNIAL SPENDING OF THE SAME SIZE, THERE ARE MULTI-BILLION- DOLLAR DISRUPT TORES THAT HAVE EMERGED IN THOSE MARKS TO WIN THOSE CATEGORIES. WEDDINGS IS ONE OF THE ONLY REMAINING CATEGORIES THAT HAS NOT SEEN A DISRUPT TORE EMERGENCY TO TAKE THIS SIZE MARKET. THAT’S WHAT WE FOCUSED ON. >>DOES THAT MOON YOU DON’T HAVE PLANS TO DO THINGS LIKE ZOLA PARENTS OR ANYTHING LIKE THAT? DO YOU THINK THAT WOULD BE THE KIND OF THING THAT WOULD DILUTE YOUR FOCUS TOO MUCH, OR DO YOU THINK THAT’S A NATURAL STEP THE WAY THAT HONEYMOONS IS A NATURAL STOP? >>WE WILL SERVE COUPLES IN THIS LIFE STAGE, AND THE DEFINITION OF THE LIFE STAGE HAS ACTUALLY EXPANDED OVER TIME AS OUR COUPLES HAVE GROWN UP WITH US. SO THE FIRST CO HEART OF COUPLES WITH ZOLA GOT MARRIED IN 2014. >>ARE THEY ON THEIR SECOND WEDDINGS NOW? >>NO. >>THAT’S GOOD. >>BUT MANY OF THEM ARE ASKING FOR US TO CONTINUE HELPING THEM WITH THINGS FOR THEIR HOME OR ELSEWHERE. >>OKAY. >>WE ARE DOING THAT. >>SO YOU WILL PROBABLY, AT SOME POINT, TEND INTO OTHER AREAS? >>MAYBE AT SOME POINT. WE’RE VERY BUSY RIGHT NOW. >>OKAY. THAT’S FAIR ENOUGH. I HAVE TO ASK YOU, BECAUSE I FEEL LIKE, IF YOU’VE GOT ANY ENTREPRENEURS OUT HERE, WHETHER IT’S WEDDINGS OR SOMETHING ELSE, THIS IS ALWAYS THE BIG ELEPHANT IN THE ROOM, IS AMAZON. NOW, I DID A LITTLE RESEARCH. I DIDN’T KNOW IT, BUT APPARENTLY AMAZON HAS A WEDDING SITE. >>YES. >>AND AMAZON, OF COURSE, WANTS TO GET FURTHER INTO TRAVEL. SO THEY ARE PROBABLY GOING TO LOOK AT HONEYMOONS ATTACHED TO THEIR WEDDING SITES, AND BUILD UP THEIR WEDDING SITE. HOW MUCH OF A PROBLEM IS THAT FOR YOU? >>WELL, THEY’VE BEEN IN WEDDINGS AND IN WEDDING REGISTRIES FROM WAY BEFORE WE LAUNCHED ZOLA, AND YET WE’VE STILL SEEN PHENOMENAL GROWTH. WE ARE STILL SEEING A LOT OF COPY CATS, FROM MANY COMPETITORS, COPYING US, AND SO IT KEEPS US MOTIVATED TO STAY AHEAD TO CONTINUE TO INNOVATE IN EACH OF THE PRODUCT LINES THAT WE HAVE. BUT WHAT NO ONE ELSE HAS IS THIS,CO SYSTEM OF ALL THE WEDDING PLANNING PRODUCTS ALL IN THE ONE PLACE THAT TALK TO EACH OTHER. SO, FOR EXAMPLE, IN HONEYMOONS, YOU CAN IMAGINE, IF WE HAVE A REGISTRY WHERE YOU CAN REGISTER FOR SPECIFIC THING ON YOUR HONEYMOON, GUESTS CAN BUY FOR YOU FROM ZOLA. IT CAN FEED INTO YOUR HONEYMOON PURCHASE, AND THEN YOU ARE ON YOUR HONEYMOON. YOU HAVE THAT ITEM. YOU CAN SEND YOUR THANK YOU NOTE VIA ZOLA TO THE PERSON THAT BOUGHT YOU THAT GIFT ALL IN ONE CLICK ON YOUR MOBILE DEVICE. THAT’S SOMETHING THAT IS HARD TO DO, BUT MAGICAL, AND MAKES A TON OF SENSE, AND WE ARE REALLY UNIQUELY POSITIONED TO DELIVER ON THAT VISION. IT’S WITHIN EXAMPLE OF A HUNDRED INTERCONNECTIONS THAT I THINK MAKE US UNLIKE ANY OTHER COMPANY. >>HAS AMAZON EVER TRIED TO ACQUIRE YOU GUYS? >>WE — I CAN’T EVEN SPECK YOU LATE ON THAT RIGHT NOW, BECAUSE WE HAVE A LOT TO DO, AND WE ARE JUST GETTING STARTED. >>YEAH. I KNOW, I DIDN’T ASK IF YOU’D EVER THOUGHT OF THAT. I ASKED IF AMAZON HAD TRY TO ACQUIRE YOU GUYS. >>NO. >>NO THEY HAVEN’T. >>OR NO, DON’T GO THERE, INGRID. >>NO, DON’T GO THERE. >>FAIR ENOUGH. OKAY. I’LL ASK YOU ANOTHER TIME. OKAY. SO HERE’S A QUESTION THAT ACTUALLY MY EDITOR, MATTHEW PANZAR,NO REALLY WANTED TO ABOUT, WHICH I’M QUITE INTERESTED IN, TOO. SO HIS SECRET LIFE BEFORE GOING INTO TECH WAS THAT HE WAS A PHOTOGRAPHER. AS HE POINTED OUT TO ME, IN PHOTOGRAPHY, IT’S — IF YOU’RE LIKE A FOREVER, ABOUT 80% OF YOUR BUSINESS IS ACTUALLY WEDDINGS. SO THAT KIND OF OPENS UP AN INTERESTING AREA. SO YOU GUYS ARE DOING A LOT OF VERTICALLY INTEGRATED STUFF, LIKE YOUR INVITES, LIKE HONEYMOONS. YOU’RE DOING IT, ALL BUILDING IT UP. BUT THERE’S THIS REALLY OBVIOUS WAY OF INTERLINKING WITH SUPPLIERS IN OTHER MARKETPLACES, LIKE PHOTOGRAPHERS. HOW DO YOU SEE STUFF LIKE IN THE? SO WE’RE TALKING ABOUT THIS REALLY IMPORTANT ELEMENT OF THE WEDDING PROCESS, WHICH RIGHT NOW IS PRETTY FRAGMENTED. BUT THAT THE’S REALLY BIG AREA TO START TO MOBILIZE CONTRACTORS. THAT’S TOTALLY OUTSIDE OF WHAT YOU’RE DOING ALREADY. HOW WILL YOU TACKLE THINGS LIKE THAT? AND WOULD YOU WANT TO? >>ABSOLUTELY. AND THIS IS ACTUALLY ONE OF THE THINGS THAT WE HAVE STARTED TO BUILD AND WE CONSIDER IN BETA PHASE RIGHT NOW ON ZOLA, WHERE WE HAVE THE ABILITY TO LET PHOTOGRAPHERS OR WEDDING VENUES OR LOCAL VENDORS THAT SERVE AND HELP COUPLES WITH THEIR WEDDINGS CREATE BEAUTIFUL UNIQUE PROFILES ON ZOLA,EN THEN BE MATCHED TO COUPLES THAT THEY THINK WILL BE MOST APPROPRIATE TO THEM. AND LIKEWISE, THE COUPLES TODAY — YOU KNOW,, WE’VE STARTED PRIMARILY IN NEW YORK AND CHARLOTTESVILLE, BUT COUPLES WHO WANT TO GET MARRIED IN THOSE AREAS CAN GO ON SPECIFY, WHAT TYPE OF VENUE THEY’RE INTERESTED IN, BUDGET PEOPLE, AND GOT JUST A SELECT NUMBER OF MATCHES FOR THE PREFERENCES. >>GREAT. >>SO THAT’S SOMETHING ALSO NO ONE ELSE DOES, AND WE HAVE BEEN EAR TRYING TO INNOVATE AND PUSH THE ENVELOPE. >>YOU’RE DOING MORE LOCALIZED SERVICES, SERVICE PROVIDERS, CONTRACTOR, DATA BASES, AND SO ON. >>YEAH. >>REALLY TOWARDS THE END VISION OF, WE KNOW TODAY, YOU HAVE TO GO TO A HUNDRED DIFFERENT SITES TO TRY TO MATCH ALL THE DIFFERENT TIMES OF VENDORS FOR THAT ONE DAY. YOU WANT TO KNOW REALLY WHAT IS THE SOCIAL NETWORK OF A VENUE OR PHOTOGRAPHER THAT WORKS WELL TOGETHER, AND CAN I SEE EXAMPLES ON Z,LA OF WEDDINGS, AND THEN WE’LL GET RIGHT THERE. >>YEAH. THAT’S VERY COOL. OKAY. WE ONLY HAVE A MINUTE, WHICH ISN’T ENOUGH TIME FOR US TO ASK THIS RATHER LARGE QUESTION. BUT YOU GUYS ARE A NEW YORK START UP. YOU’RE NOT VALUED AT 650 MILLION. YOU’VE RAISED 140, OVER 140 MILLION, WHICH IS ABSOLUTELY IMPRESSIVE. HOW MUCH OF A CHALLENGE WAS IT TO RAISE THAT MONEY, A, BEING OUT OF NEW YORK, P, BEING A WEDDING SITE, C, BEING A WOMAN? >>WELL, I THINK EVERY SINGLE FAN I’VE SPOKEN TO, NO MATTER GENDER OR WHERE THEY LIVE, FUND-RAISING IS CHALLENGING FOR ANYONE,, I THINK,. >>NOT JUST IN NEW YORK. >>NOT JUST BECAUSE OF THE WEDDING. >>AND I THINK — IN THE EARLY DAYS, BEFORE WE HAD SHOWN, YOU KNOW, WE COULD LAUNCH A GREAT PRODUCT THAT PEOPLE LOVED THAT HAD HUGE GROWTH. IT WAS CERTAINLY HARDER, BECAUSE THERE WERE A LOT OF BODIES PURR RID IN THE WEDDINGS CATEGORY. NOW WE’VE SHOWN WE CAN DO SOMETHING IN A CATEGORY THAT NO ONE ELSE HAS BEEN ABLE TO DO, AND PEOPLE ARE VERY EXCITED. >>YOU OF ALSO GOT INTERESTING BACKGROUND, YOUR BACKGROUND WITH THE GUILDEN GROUP AND SO ON. SO THAT PROBABLE HELPED YOU? >>YEAH. WE HAVE HISTORY IN GOOD TIMES, BAD TIMES, AND WE KNOW WHAT TO DO AND WHAT TO AVOID. >>I KNOW. I MEAN, GUILD DEFINITELY NOSE- DIVED. BUT, YOU KNOW, YOU THINK THAT’S THE SORT OF THING THAT SOMETIMES HELPS — WHEN YOU HAVE SOMEBODY WHO’S BEEN THROUGH THAT, YOU THINK ACTUALLY THEY KNOW EXACTLY WHAT NOT TO DO. >>EXACTLY. >>YEAH. THANK YOU SO MUCH FOR YOUR TIME. >>THANK YOU. >>THANKS, EVERYBODY. >>GOOD TALK, GUYS. . OKAY. ON THE EXTRA CRUNCH STAGE, WE HAVE A PANEL ON HOW TO DECIDE BETWEEN BOOT STRAPPING AND RAISING VENTURE CAPITAL. IT SOUNDS STRAIGHTFORWARD. EVERYONE WOULD LOVE TO BOOT STRAP, BUT IT’S ACTUALLY FAR MORE COMPLICATED THAN THAT. IF YOU WANT TO HEAR FROM BEN CHESTNUT, THE COFOUNDER AND CEO OF MAIL CHIMP AND CATHERINE ME TRADITIONALIA, THE PRESIDENT OF CABBAGE, HIT THAT UP AT 4:00. THAT’S WHEN THAT STARTS. >>>BUT NOW ON THE MAIN STAGE, WE’RE GOING TO TALK A LITTLE BIT ABOUT THE FUTURE OF CITIES. PLEASE WELCOME TO THE STAGE THE FORMER GOVERNOR OF MICHIGAN AND CNN COMMENTATOR AND UC BERKELEY PROFESSOR JENNIFER GRANHOLM, AND CEO OF Z,KES AS WELL AS YOUR MODERATOR KRISTEN CORCET. WARM WELCOME, PLEASE. >>ALL RIGHT. >>IF YOU MISSED IT EARLIER, I WAS UP HERE, TALKING ABOUT FLYING CARS. NOW WE’RE GOING TO TALK ABOUT WHAT HAPPENS WHEN YOU PUT THOSE THINGS INTO STILLS. SO THANK YOU SO MUCH FOR JOINING ME, GOVERNOR, AND A,SHA. AS I SAID, WE’RE HERE TO TALK ABOUT THE FUTURE OF TRANSPORTATION, NAMELY AUTONOMOUS VEHICLES, SINCE THAT IS WHAT ZUKES IS DOING, AND ITS RELATIONSHIP WITH CITIES. YOU BOTH HAVE DIFFERENT PERSPECTIVES. YOU KNOW, GOVERNOR, YOU WERE FORMER GOVERNOR OF MICHIGAN, A STATE THAT IS — WAS, AND CONTINUES TO BE ONE OF THE LARGEST EMPLOYERS OF AUTO WORKERS. AND I’M WONDERING, FROM YOUR PERSPECTIVE AND YOUR BACKGROUND, WHO IS THE GOING TO OWN THE FUTURE OF TRANSPORTATION? AND YOU CAN’T SAY Z,KES. IT’S NOT ABOUT NAMING COMPANIES. I’M WONDERING, YOU KNOW, REGION UNTILLY, CITIES, LIKE WHO IS GOING TO OWN THIS SPACE? >>YEAH. I DO KNOW, AND YOU KNOW THIS, TOO, IS THAT YOU REPORT FROM THERE IS THAT THE OEMS IN THE AUTO INDUSTRY ARE THINKING ABOUT THIS REALLY HARD, BECAUSE THERE’S WHAT, 260 MILLION CARS ON THE ROADS RIGHT NOW, BUT ANTICIPATING AUTONOMOUS VEHICLES MEANS THAT THERE’S GOING TO BE A LOT FEWER CARS. MAYBE 45 MILLION CARS. AND WHAT DOES THAT DO FOR THOSE WHO MANUFACTURE CARS, RIGHT? SO THEY BECOME NOT NECESSARILY JUST COMMODITY BUILDERS, BUT SERVICE PROVIDERS. AND THAT’S THE MODEL THEY ARE LOG AT. AND I THINK IT’S PART OF THIS AS A DISRUPT CONFERENCE. THIS TECHNOLOGY IS HUGELY DISRUPTIVE. IT’S DISRUPTIVE FOR THE OEMS, DISRUPTIVE FOR THE OIL INDUSTRY. BUT FOR THOSE VEHICLE MAKERS, THEY HAVE GOT TO GET NOT BEHIND THE TRAIN, BUT AHEAD OF IT. I THINK YOU ARE SEEING IT WITH THE CEOS MAKING THESE CRITICAL INVESTMENTS IN THE TECHNOLOGY THAT WILL ALLOW THEM NOT TO BE JUST BUILDERS, BUT SERVICE PROVIDERS. >>SO DO YOU — BEFORE HAVING USHA WEIGH IN, DO YOU SEE THIS AS DETROIT AND SILICON VALLEY SQUARING OFF AGAINST EACH OTHER RIGHT NOW? >>SEEM TO BE PARTNERING IN A LOT OF PLACES. >>YEAH, YEAH. SO IS THERE — I MEAN, IS THERE A COUNTRY EVEN THAT IS — THAT YOU SEE RIGHT NOW, BASED ON POLICY AND TECHNOLOGY AND DEVELOPMENT, AND HOW MUCH INVESTMENT THEY’RE PUTTING INTO IT, KIND OF SPECIALLY ABLE TO OWN THIS SORT OF FUTURE OF TRANSPORTATION, OR IS IT UP FOR GRABS? >>YEAH. LET ME JUST SAY, FIRST OF ALL, I KNOW THAT MICHIGAN WANTS TO OWN THIS, AND I KNOW THAT SILICON VALLEY WANTS TO OWN THIS, AND SO A GOOD BIT OF HEALTHY COMPETITION IS HAPPENING. BUT REALLY, THE PLACES WHERE THIS IS GOING TO GO FASTEST AND FURTHEST ARE PLACES WHERE YOU’VE GOT PEOPLE LIKE ME, WHO ARE POLICY MAKERS WHO ARE NOT FREAKED OUT ABOUT THE TECHNOLOGY, WHO ARE NOT AFRAID TO EXPERIMENT, WHO ARE NOT AFRAID TO ADOPT POLICIES THAT ALLOW FOR THE TECHNOLOGY TO BE ON THE STREETS. AND SO YOU’LL SEE — AND PLACES THAT WHERE THE LEADERS UNDERSTAND THE SAFETY RAMIFICATIONS, MEANING THAT IF 38,000 PEOPLE DIE EVERY YEAR IN CAR ACCIDENTS, THEN IT WILL BE SO MUCH BETTER THAT THE COST OF GETTING PEOPLE TO WORK WILL BE SO MUCH CHEAPER, THAT IT WILL CREATE A SPACE THAT MAKES THOSE COMMUNITIES SO MUCH MORE ATRACK IF THE TO THE KIND OF TECHNOLOGY WORKERS AND WORKERS IN GENERAL, THAT PEOPLE WANT TO ATTRACT. THOSE KIND OF LEADERS ARE THE PLACES WHERE YOU WILL SEE MUCH MORE RAPIDDED OPTION, AND THEN THE REAL ESTATE WILL FLOW. >>ISHA, DO YOU AGREE, OR ARE WE OVERLOOKING A COUNTRY OR ANOTHER REGION THAT IS ACTUALLY, YOU KNOW, PUSHING THIS AHEAD FASTER THAN SILICON VALLEY AND DETROIT? >>WELL, I MEAN, SOMETHING IS GOING ON IN CHINA. >>FOR SHOWER. >>SO, LOOK, I THINK THAT SILICON VALLEY AND DETROIT, FIRST OF ALL, I DON’T THINK IT’S A COMPETITION. I THINK IT’S A PARTNERSHIP. THERE IS GOING TO BE A VEHICLE MOVING PEOPLE AROUND, WHETHER IT’S FOR MICRO MOBILITY, ALL THE WAY TO A BIG TRANSPORTATION. SO I THINK IT’S A PARTNERSHIP. THERE IS DEFINITELY A LOT GOING ON IN CHINA. NO QUESTIONS ABOUT IT. BUT TRANSPORTATION IS ALSO VERY LOCAL. SO THE WAY YOU HAVE TRANSPORTATION IN THE U.S. VERSUS IN EUROPE VERSUS IN CHINA VERSUS IN INDIA AND OTHER PLACES OF THE WORLD, THE NEEDS YOU’RE TRYING TO SERVE CAN ALL BE DIFFERENT. SO I THINK IT’S ALL PARTNERSHIP, ESSENTIALLY. >>CAN I — JUST TO BUILD ON THIS ISSUE ABOUT CHINA. >>YEAH. >>THIS IS WHY I THINK THE LEADERSHIP IN THIS COUNTRY, WHETHER IT’S AT THIS LOCAL, HYPER LOCAL LEVEL OR THE FEDERAL LEVEL IS SO CRITICAL, BECAUSE THERE’S MASSIVE INVESTMENTS HAPPENING IN CHINA TO MAKE THIS TECHNOLOGY MORE UBIQUITOUS, WHEREAS HERE IT’S ALL BEING LEFT AT THE MOMENT TO THE PRIVATE SECTOR WITH SOME STATES ALLOWING EXPERIMENT STATION, BUT NOT THE FUNDING THAT YOU ARE SEEING AT IN OTHER COUNTRIES. AND SO, YOU KNOW, THAT’S OUR QUESTION AS A NATION. DO WE WANT TO LEAD, OR TO WE WANT TO ALLOW OTHER COUNTRIES TO LEAD AND US JUST FOLLOW? >>SO DOES IT — IS IT — IS IT GOING TO COME DOWN TO MORE GOVERNMENT INVESTMENT? I MEAN, WHAT’S Z,KES’ POINT OF VIEW ON THAT? DO YOU THINK — RIGHT NOW, AS THE GOVERNOR WAS SAYING, IT’S, LIKE, A LOT OF PRIVATE COMPANIES — DOES THE GOVERNMENT HAVE A ROLE IN REALLY PUSHING THIS FORWARD? >>WELL, THERE ARE SEVERAL FORMS OF INVESTMENT. INVESTMENT IS NOT NECESSARILY CASH. >>RIGHT. >>IN TERMS OF REGULATORY PROCESS, IN TERMS OF PERMITTING, IN TERMS OF INFRASTRUCTURE. CITIES ARE GOING TO BE — I THINK THERE IS THIS VIEW THAT THE WAY THE CITIES ARE NOW, PEOPLE ARE DRIVING IN THEM. NOW, ALL OF THE SUDDEN, YOU’RE GOING TO HAVE SELF-DRIVING CARS, AND EVERYTHING IS GOING TO BE THE SAME. WE DON’T LOOK AT MOBILITY AS A SERVICE THROUGH AUTONOMY THE SAME WAY. WE THINK CITIES ARE GOING TO BE DIFFERENT. I MOON, TODAY, 1/3rd IF THE TIME IS SPENT LOG FOR PARKING. THAT’S A CONTRAST ELEMENT. IF YOU HAVE LESS VEHICLES, YOU’RE IN THE GOING TO HAVE THAT PROBLEM. SO THEN WHAT HAPPENS? ALSO THERE’S A LOT OF THESE AS THE TODAY, PASSENGER CARS. THEY’RE ONLY ACTIVE 4% OF THE TIME, WHICH MEANS 96% OF THE TIME THEY ARE PARKED SOMEWHERE, AND DEPRECIATING. SOMEWHERE IS A PHYSICAL LOCATION. SO IS OUR BUILDINGS. WHAT HAPPENS TO THOSE BUILDINGS? TODAY, WHEN YOU’RE PLANNING YOUR CITY, YOU’RE LOOKING AT PARKING LANES, AND BY THE WAY, THE LOCAL AUTHORITIES, THE LOCAL AGENCIES MAKE MONEY OFF OF THAT. SO HOW IS THE MONEY FLOW AND THE MONEY DISTRIBUTION GOING TO CHANGE? HOW DO YOU INTEGRATE PUBLIC TRANSPORTATION, MEANING THE LAST MILE AND ALL OF THE SHUTTLES THAT ARE GOING AROUND. SO I THINK THAT ENTIRE TRAN FORMATION IN TERMS OF WHAT CITIES LOOK LIKE IS GOING TO CHANGE, AND WHEN YOU WALK BACK WARDS, GOVERNMENTS AND LOCAL AUTHORITIES AND AGENCIES WILL HAVE TO MAKE ADJUSTMENTS. AND THAT’S WHAT I CALL THEIR PART OF THE INVESTMENT. >>OKAY. SO WE HAVE, LIKE, 17 MINUTES TO SOLVE ALL OF THOSE PROBLEMS. >>ALL RIGHT. LET’S GO. >>MAYBE WE SHOULD HAVE A HACK AT HON FOR THAT. SO THE ONE THING I’VE NOTICED A LOT IN MY REPORTING ON AUTONOMOUS VEHICLES IS THERE IS A TENDENCY TO SORT OF LOOK AT THINGS THIS HIKE UTOPIAN LENS, WHERE ALL THE PARKING LOTS ARE GOING TO TURN INTO PARKS, AND, YOU KNOW, THEIR — THE VISION IS ZERO. THERE WON’T BE ANY MORE CAR CRASHES, ANY MORE FATALITIES. BUT HERE’S THE THING. PEOPLE IN CITIES, AS YOU WERE TALKING ABOUT, YOU KNOW, WHO LIVE IN CITIES ARE WORKING IN CITIES. SO THESE PEOPLE WILL THE LOWER BE PART OF BUILDING THIS FUTURE OF TRANSPORTATION, OR THEY WILL BE DISPLACED BY IT. AND I’M WONDERING, GOVERNOR, FOR YOU FIRST, I MEAN, WHAT DO YOU SAY TO THOSE WORKERS? THOSE WORKERS WHO ARE POSSIBLY GOING TO BE DISPLACED? AND I THINK, RIGHT NOW, IT’S PARTICULARLY INTERESTING, BECAUSE WE’RE AT, WHAT, DAY 16 OF THE UNITED AUTO WORKERS STRIKE. >>NO. THIS IS SUPER IMPORTANT QUESTION. SO THERE ARE 0 MILLION PEOPLE IN THE COUNTRY THAT MAKE THEIR LIVING DRIVING, RIGHT? WHO ARE FREAKED OUT ABOUT THE NOTION OF THIS. AND NOT TO MENTION THE PEOPLE IN THE INSURANCE INDUSTRY THAT MIGHT — THE AUTO INSURANCE INDUSTRY THAT MIGHT BE FREAKED OUT ABOUT IT. OR THE PEOPLE IN THE AUTO FINANCE INDUSTRY, THE PEOPLE IN THE SHOPS THAT ACTUALLY DO REPAIRS OR THE DEALERSHIPS. THERE’S A WHOLE ECOSYSTEM OF PEOPLE THAT COULD BE DISRUPTED BY IT. BUT HERE’S WHAT I LIKE TO SAY TO PEOPLE. I MEAN, IF YOU’RE BULLISH ON THE TECHNOLOGY, THEN LOCK AT — THERE WAS A PROFESSOR NAMED JAMES BESSUM, WHO DID A STUDY OF ALL — OF 317 PROFESSIONS WHERE TECHNOLOGY HAD BEEN INTRODUCED, AND TO FIND OUT HAD THE TECHNOLOGY DISPLACED PEOPLE OR HAD IT THE TECHNOLOGY ACTUALLY INCREASED EMPLOYMENT. AND OF THE 317 PROFESSIONS, THERE WAS ONLY ONE PROFESSION THAT ACTUALLY WENT AWAY AS A RESULT OF TECHNOLOGY. ALL OF THE REST HAD EMPLOYMENT INCREASE, BECAUSE YOU CAN’T IMAGINE WHAT THE ECOSYSTEM WILL CREATE WHEN YOU HAVE THIS NEW TECHNOLOGY. THE ONE PROFESSION THAT WANT AWAY WAS ELEVATOR OPERATOR. BUT THE REAL ESTATE OF THESE PLACES, EVEN LIKE ATMS, THE BASIC, THE TAM EMPLOYMENT INCREASED FOR TELLERS AS A RESULT OF THE INVESTMENT IN A TMS. YOU JUST DON’T KNOW WHAT IS GOING TO HAPPEN IN THE ECOSYSTEM, BUT YOU CAN IMAGINE THAT THERE IS ALL SORTS OF REALLY INTERESTING APPLICATIONS FOR AUTONOMOUS VEHICLES, BUT THE REAL QUESTION IS, WHAT DO YOU DO WITH THE PEOPLE WHO ACTUALLY DON’T HAVE A SKILL NECESSARY TO CODE OR TO BE PART OF THE TECHNOLOGY COMPONENT OF THIS? HOW DO YOU MAKE THIS WORLD AVAILABLE TO THEM? AND THAT’S WHY THE POLICY FRAMEWORK HAS TO BE SET UP IN A WAY THAT ALLOWS PEOPLE TO THRIVE. AND RIGHT NOW, ALL WE’VE GOT IN THE U.S. ARE THESE OLD, 20th CENTURY RETRAINING PROGRAMS THAT TIME AFTER TIME, STUDIES HAVE SHOWN DON’T WORK. THE INVESTMENTS IN OLD-TIME TRAINING DO NOT WORK. THE INVESTMENTS IN TECHNOLOGY- BASED TRAINING, MONDAY EVENING YOU TAKE SOMEBODY WHERE THEY ARE AND YOU USE ARTIFICIAL INTELLIGENCE AND MACHINE LONGER TO BRING THEM TO A NEW LEVEL, WHERE THEY DON’T HAVE TO GO SIT IN A COMMUNITY COLLEGE, AND THEY’RE — YOU KNOW, WHETHER THEY’RE YOUNG AND THEY DON’T WANT TO GO TAKE TRIGONOMETRY ORER THEY ARE OLDER AND HAVE BEEN DISPLACED AND DON’T WANT TO SIT NEXT TO AN 18-YEAR-OLD AT A COMMUNITY COLLEGE. YOU CAN HAVE TRAINING THAT RESPECTS WHERE PEOPLE ARE BASED UPON TECHNOLOGY AND TAKES THEM TO THE NEXT LEVEL. WE JUST HAVEN’T THOUGHT ABOUT THE POLICY RAMIFICATIONS OF INVESTING IN THAT AS A NATION, AND THAT TO ME, HAS TO BE DONE IN TANDEM WITH DISPLACING KINDS OF TECHNOLOGY. PLUS WE ALSO HAVE TO BE REMINDED THAT TECHNOLOGY IS A TOOL AND CAN BE USED TO ENHANCE SKILLS. WE ARE ALL CYBORGS ALREADY, BECAUSE WE ALL HAVE CELL PHONES. SO THIS IS A TOOL AS WELL. DOESN’T HAVE TO REPLACE. IT CAN ENHANCE SKILL. >>>WE’RE FINDING OUT HUMAN BEINGS ARE UNDERRATED. WE HAVE METHODOLOGIES FOR THAT. I THINK JESSE TALK EARLIER ABOUT TELEOPERATION, WHICH IS NEW JOB. IT IS LITERALLY A NEW CLASS OF JOB, WHERE THE FOUNDERS ARE A SITUATION, WHERE IT DOESN’T KNOW WHAT TO DO, AND IT AUTONOMOUSLY SAYS BACK TO THE TELI CENTER. THERE’S A CONSTRUCTION ZONE THAT I DON’T KNOW HOW TO DEAL WITH, OR I’M GOING TO HAVE TO BREAK A RULE RARELY. DO I HAVE PERMISSION TO DO THAT. ON THE OTHER SIDE OF THAT ARE TECHNICIANS THAT ARE LOOKING AT THE PERCEPTION OUT PUT, AND SAY, “YES, YOU HAVE PERMISSION TO DO THIS,” OR, “HERE’S A NEW TRAJECTORY FOR YOU,” THOUGH THE VEHICLE IS TOTALLY IN CONTROL. THAT’S NEW CLASS OF JOB. CALL IT THE CALL CENTER OF THE FUTURE. SEC OF ALL, THESE VEHICLES DON’T HAVE A MIND OF THEIR OWN. THEY HAVE TO BE CHARGED. THEY HAVE TO BE CLEANED. THERE HAS TO BE A FLEET MANAGEMENT SYSTEM ON TOP OF THEM. SO I BELIEVE THAT THERE WILL BE MANY MORE TIMES OF JOBS THAT WILL COME TO BEAR, AND THAT WILL BE ESSENTIALLY THE DISPLACEMENT. WE ALSO HAVE CASES RIGHT NOW WHERE WE HAVE SAFETY DRIVERS AND A SOFTWARE OPERATOR, AND WHAT HAPPENS IS SOME OF THESE SOFTWARE OPERATORS ARE LIKING THE TECHNOLOGY, UNDERSTANDING MORE. IN SOME CASES, EVEN GETTING MORE EDUCATION, OR JUST ASKING FOR A TRANSFER INTO THE SOFTWARE TEAM, WHERE THEY ENTER THROUGH QA, AND HAVE A CAREER PATH GOING FORWARD. SO WE SHOULD TALK ABOUT THE JOBS THAT WILL BE CREATE 0, THE OPPORTUNITIES, AND YES, TRAINING AND ALL THOSE THINGS. BUT AS SHE SAID EARLIER, IT IS VERY RARE THAT TECHNOLOGY DISRUPTS AND DISPLACES IN A WAY THAT IT’S NEGATIVE FROM A JOB PERSPECTIVE. AND IN TERMS OF SPACE, I REALLY WANT TO TALK ABOUT THIS. YES, SOME OF THE PARKINGINGS WILL BE PARKS. I GET THAT. BUT YOU KNOW WHAT? I THINK WE ALL KNOW THE HOUSING CRISIS IN MOST OF THESE CITIES. THERE’S AN OPPORTUNITY THERE. WITH ALSO KNOW THAT THIS IS AND OPPORTUNITY FOR MORE ENTERPRISE TO COME INTO THE CITIES. AND CATEGORY 3, THAT’S MORE — THAT PROVIDES AND OPPORTUNITY FOR MORE JOBS. SO IT’S NOT JUST GONG BE ALL PARK AND GREEN, AND EVERYBODY’S GOING TO HAVE MORE FUN. I THINK YOU’LL SEE A NEW LEVEL OF INFRASTRUCTURE BEING BORN, AND THAT WILL BRING OPPORTUNITY. >>SO I DON’T KNOW IF EITHER OF — MAYBE YOU CAN SPEAK SPECIFICALLY TO ZUKES, AND, GOVERNOR, MAYBE THROUGH SOME OF YOUR POLICY RESEARCH, YOU MIGHT HAVE THIS NUMBER, BUT FOR ZUKES, WHERE ARE THESE FOLKS COMING FROM WHO ARE TAKING THESE JOBS, THESE NEW KIND OF JOBS, TELE COME OPERATION? WHAT IS THEIR BACKGROUND? DO YOU HAVE ANY SENSE OF HOW MANY — WHAT PERCENTAGE OF THE COMPANY IT’S BECOME? I MEAN, IS IT GOING TO BECOME THE SERVICE SIDE, FOR EXAMPLE? IS THAT GOING TO BE BECOME THE LARGER PIECE OF Z,KES EVENTUALLY? AND I WONDER HOW THAT APPLIES TO THE REST OF THE INDUSTRY. I MEAN, HAS THERE BEEN ANY RESEARCH TO GIVE US AN INDICATION OF WHAT THAT JOB OPPORTUNITY IS? THESE SERVICE-RELATED JOBS, TELLER OPERATION JOBS, MAYBE NOT THE ENGINEERING JOBS THAT WITH OFTENTIMES FOCUS ON. >>UH-HUH. SO — I MEAN SOME OF THEM ARE COLLEGE OPERATED, COLLEGE GRADUATE, SORRY. NOT NECESSARILY IN THE TECHNICAL FIELD, BY THE WAY. AND THEN — BUT AS THEY ARE ON THE JOB, THEY LEARN MORE, FOR THOSE WHO PROGRESS TO QA AND OTHER DISCIPLINES. ABOUT 0% OF ZULES MAKES IT, MONDAY EVENING THEY LIVE SAN FRANCISCO. AND THAT INCLUDES ATTRITION AND EVERYTHING. WE ARE STILL AT AN EARLY STAGE OF TESTING. YOU CAN IMAGINE, IF YOU HAVE THOUSANDS AND THOUSANDS OF VEHICLES, THE OPERATION AROUND THAT. FOR ZUKES, THAT’S WHEY CALL SUCCESS. THAT MEANS THAT CAN EASILY OVERTAKE YOUR R AND D ORGANIZATION IN TERMS OF JUST SHEER NUMBERS. >>CAN YOU IMAGINE — I MEAN, HERE WE ARE IN AN ENVIRONMENT WHERE THERE COULD BE DISPLACE. WITHOUT THE RIGHT GUARD RAILS, RIGHT? AND SO THE QUESTION IS, HOW DO YOU PROVIDE THE RIGHT CARROTS AND STICKS FOR PEOPLE BOTH TO HAVE AN ENTRY-LEVEL JOB AND HAVE PERHAPS THAT JOB PARTIALLY SUBSIDIZED BY THE GOVERNMENT UNTIL IT’S DERISKED ENOUGH THAT THE EMPLOYER AND THE EMPLOYEE CAN DECIDE THEY WANT TO MAKE THIS A PERMANENT RELATIONSHIP. SO RIGHT NOW, WE PAY — YOU ALL PAY AS TAXPAYERS FOR UNEMPLOYMENT. WHAT IF WE SUBSIDIZED EMPLOYMENT RATHER THAN UNEMPLOYMENT? WE FLIPPED THE SCRIPT ON THAT. WHAT IF WE THOUGHT OF LEARNING AS NOT JUST SEAT TIME, YOU KNOW, BUT IT’S MUCH MORE ACTIVE THING. WHAT IF WE HAD LIFE-LONG LEARNING ACCOUNTS IN ADDITION SOCIAL, SO IN THE PEOPLE CAN ACTUALLY UP SKILL THEMSELVES? WHAT IF WE TRAINED YOUNG PEOPLE, NOT JUST, YOU KNOW, ON YOUR A, B, CS, BUT HOW TO — HOW TO DO THE THINGS THAT AU AND ROBOTS CANNOT DO, HOW TO COLLABORATE, HOW TO LEAD, HOW TO WORK IN GROUPS. WE DON’T TEACH THAT KIND OF STUFF, BUT WITH THIS KIND OF TECHNOLOGY, THERE IS A MOMENT FOR US TO THINK ABOUT HOW WE LEARN AS HUMAN BEINGS THROUGHOUT LIFE. >>WELL, DO YOU THINK THAT CAN WORK EVEN IN MICHIGAN, WHERE RIGHT NOW, THERE ARE 48,000, YOU KNOW, UNITED AUTO WORKERS ON STRIKE? THAT THOSE SPECIFIC PEOPLE, RIGHT, CAN WE TRANSITION THEM TO OTHER JOBS SO THEY CAN HAVE THAT SAME SORT OF LIFESTYLE THEY’VE BEEN ABLE TO HAVE? >>THIS IS THE QUESTION, RIGHT? BECAUSE YOU’VE GOT PEOPLE WHO HAVE BEEN WORKING ALL OF THEIR CAREERS IN A REALLY GOOD PAYING JOB, POSSIBLELY. MAYBE NOT AS WALL AS IT WAS BEFORE THE RECESSION, BECAUSE THESE AUTO WORKERS GAVE A HUGE AMOUNT OF CONCESSIONS IN ORDER TO KEEP THE COMPANIES AFLOAT. BUT THE BOTTOM LINE IS, THEY JUST WANT A GOOD JOB, AND THEY’RE REALLY PROUD OF BUILDING. SO WHAT ARE THOSE NEW JOBS INSIDE THAT THEY CAN BE TRAINED FOR, AND WHAT IS THE ROLE OF THE UNION, FOR EXAMPLE? THE UNITED AUTO WORKERS, MAYBE THEY BECOME THE BROKERS OF GREAT SKILL, OF THE SKILL THAT’S NECESSARY. MAYBE THEY BECOME A TRAINING PARTNER WITH THE COMPANY TO MAKE SURE THAT PEOPLE ARE NOT JUST MOVED OUT, BUT THAT THEY LEARN THE SKILLS THAT ARE NECESSARY TO MAKE BOTH THE VEHICLES AND THE SERVICE SIDE OF THIS NEW DISRUPTIVE THRUST TO WORK. SO TO ME, WE STILL HAVE A VERY 20th CENTURY MIND SET ABOUT THIS, AND WE NEED TO — ALL PORTIONS OF IT NEED TO THINK ABOUT WHERE IS — WHERE IS THE PUCK GOING, AS THEY SAY. WHERE ARE WITH GOING, AND HOW CAN WE BUILD A SYSTEM AROUND THAT TO MAKE SURE EMPLOYEES ARE SAFE. THE OTHER THING I WOULD SAY, THERE’S A LOT OF TALK IN SILICON VALLEY ABOUT THE UNIVERSAL BASIC INCOME, AND THAT IS SOMEHOW GOING TO BE THE SOLVE FOR EVERYTHING. ANDREW YANG HAS CERTAINLY BEEN TALKING ABOUT THAT ON THE PRESIDENTIAL TRAIL. YOU KNOW, WHETHER IT’S A UNIVERSAL BASIC INCOME OR WHETHER WE THINK ABOUT, YOU KNOW, DATA AS SUPPLY TO THE PLATFORMS AND GET PAID FOR — COMPETED FOR DATA, WHICH A LOT OF PEOPLE ARE TALKING ABOUT, SOME WAY, WE’VE GOT TO MAKE SURE THAT INEQUALITY IS NOT EXACERBATED BY THE TECHNOLOGY, AND THAT, AGAIN, REQUIRES SOME POLICY GUARD RAILS TO MAKE SURE THAT WE ALL MOVE FORWARD TOGETHER. >>. >>SO YOU WERE SAYING THE 2th CENTURY. LET’S TALK ABOUT THE 21st CENTURY FOR A MOMENT. MAYBE NOT IN TOO DISTANT OF A FUTURE. SO RIGHT NOW, Z,KES HAS WHAT? ABOUT 30 RETRO FITTED VEHICLES IN ITS FLEET. SO I’M WONDERING, DO YOU THINK THAT OUR CITY IS PREPARED FOR THE DAY WHEN THERE ARE HUNDREDS OF ZUKES VEHICLES. POTENTIALLY LOT IF OTHERS. IS SAN FRANCISCO PREPARED FOR THAT, AS AN EXAMPLE? >>YES, BECAUSE THERE ARE ROADS, AND I MEAN, SOMETIMES WE NEED TO BACK UP THE BOAT A LITTLE BIT. WE’RE TALKING ABOUT TRANSPORTATION. THE SAME WAY AS FEWER PEOPLE WENT TO HORSES AND CARRIAGE, AND WITH THE PASSENGER CAR. THERE ARE ROADS TODAY, THE PEOPLE ARE DRIVING ON. HOWEVER, IT WILL HAVE TO BE AN EVOLUTION ON THE INFRASTRUCTURE, MAYBE LESS GAS STATION, WORK CHARGING STATIONS. THE PARTNERSHIP AND I TALKED ABOUT EARLIER, PARKING IN PARTS AND JOBS, BUT I BELIEVE IN THE HUMAN SPIRIT, AND I BELIEVE IN CITIES, WE HAVE GONE THROUGH THESE TRANSFORMATIONS MANY TIMES. AND NOTHING BAD HAPPENED. WE FIGURED IT OUT. >>IT WOULD BE VERY CHAOTIC, TO BE FAIR. A LESS TECHNOLOGICALLY ADVANCED WAY OF MOBILITY, SCOOTERS IS APPENDED PARTS OF THE CITY. AND CITIES ARE FIGURING OUT THAT THERE IS A TIME WHERE IT WAS CRAZY. >>THERE WOULD BE WAYS. WE WOULD FIGURE THEM OUT. >>IN YOUR VIEW THERE SHOULD NOT BE SPECIAL LANES FOR AUTONOMOUS VEHICLES. THEY SHOULD INTERACT WITH THE WAY THE CITY IS CONSTRUCTED TODAY? >>OUR VIEW AT ZOOX IS IF WE REQUIRE THE CITY OR SO TO THE TRANSFORMATION, TRANSPORTATION SYSTEMS TO DO IT DIFFERENTLY, FOR A VEHICLES OPERATE AND FOR OUR SERVICE TO BE LAUNCHED THEN WE HAVE FAILED. ONE IS TO FIRST INTEGRATE THE EXISTING INFRASTRUCTURE. I DO BELIEVE THAT OVER TIME, IT WILL TAKE DECADES. THIS IS THE MORE EFFECTIVE AND EFFICIENT WAY TO TRANSPORT PEOPLE. AND IT IS ALSO ON-DEMAND AND AS NEEDED. WE MAY SEE PROBABLY IN THE NEXT, COUPLE OF DECADES, SOME PARTS OF SOME CITIES WHERE IT WILL BE AUTONOMOUS ONLY. IT WOULD BE BECAUSE WE EARNED IT. NOT BECAUSE WE NEEDED IT TO OPERATE. >>DO YOU THINK IN TERMS OF, WHAT IS THE BALANCE BETWEEN FREE-MARKET AND THE POLICYMAKERS JUMPING IN. FOR EXAMPLE, RIGHT NOW LET’S SAY WE’RE GOING TO DEPLOY THOUSANDS AUTONOMOUS VEHICLES, SHOULD THERE BE RULES IN PLACE AND POLICIES THAT ENCOURAGE THROUGH INCENTIVES OR REGULATE, COMPANIES LIKE ZOOX, ANY OF THE OTHER ONES THAT POP UP. TO MAKE SURE THEY ARE GOING TO UNDERSERVED AREAS FOR EXAMPLE. >>TO ME, YOU THOUGHT ABOUT THIS, ABOUT NOT PUSHING FOR CHANGE BUT OPERATING IN THE EXISTING ENVIRONMENT IS SUPERSMART. ON MY SITE, I WOULD SAY, SMART LEADERSHIP, ON THE CITY SIDE, WOULD BE TO MAKE SURE WE HAVE, WE RETHINK THE CURVE. AND WE RETHINK THE CURB IN THE PARKING STRUCTURE. THAT WE REPURPOSE PEOPLES, WE INCENTIVIZE THE REPURCHASING OF PEOPLE’S GARAGE IS. WHICH THEY WON’T NEED ANY MORE. ACCESSORY DWELLING UNITS. AND ALL OF THAT. WE NEED TO THINK ABOUT THE POLICY RELATED TO THAT. I THINK THIS IS TRUE FOR THE VEHICLE, I THINK IT IS TRUE FOR THE HUMAN. AS WELL IN TERMS OF MAKING SURE PEOPLE ARE ABLE TO BE BROUGHT ABOUT QUICKLY. I FORGOT THE PREMISE OF YOUR QUESTION. DID I ANSWER IT? >>MAYBE SHOULD JUMP IN HERE, TALKING ABOUT UNDERSERVED BUT ALSO JUST BECAUSE WE ARE ABOUT TO RUN OUT OF TIME, TO ADDRESS PEOPLE’S WITH DISABILITIES BECAUSE ONE THING OCCURRED A TON OF EVERY SINGLE AUTONOMOUS VEHICLE COMPANY TALKS ABOUT, PEOPLE RELATED TO AUTONOMOUS VEHICLES TALK ABOUT THIS ABILITY FOR THESE VEHICLES TO SERVE PEOPLE WHO ARE MISSING OUT, WHO DO NOT HAVE LICENSES, WHO ARE WHEELCHAIR-BOUND FOR EXAMPLE. I AM WONDERING WHAT ZOOX’S PLAN IS FOR THAT. AND YOUR VIEW ON, SHOULD FREE- MARKET BE PUSHING, ALLOW THIS TO JUST HAPPENED? OR IS THERE A ROLE FOR POLICY TO ENCOURAGE THROUGH INCENTIVES, OR THROUGH REGULATIONS, TO SERVE THIS MARKET? >>A LOT AND 20 SECONDS. THE UNIT YANG, I TRULY BELIEVE, UNIT YANG, THE CITIES AND AUTHORITIES WILL ADJUST. AND IT WILL KEEP GOING LIKE THAT. IN TERMS OF UNDERSERVED COMMUNITIES, THEIR TWO QUESTIONS IN THEIR. OUR VEHICLES ARE NOT GOING TO, AS LONG AS IT IS PHYSICALLY POSSIBLE TO GET SOMEWHERE, WE WILL BROADEN THE POSSIBILITY OF MOVEMENT, AND THEREFORE THAT WILL BRING ACCESS. INTERNS, PEOPLE WHO DO NOT HAVE A DRIVERS LICENSE, TEENAGERS, BY CHOICE, BUT FOR PEOPLE WHO CAN’T SCOTT MAY NOT BE OUR FIRST ORDER OF THINKING. WE ARE THINKING OF ALL CLASSES AND ALL TYPES OF PEOPLE WHO CAN’T DRIVE AND WHY THEY CAN’T AND WHAT DO WE NEED TO DO TO SERVE THEM. THE FIRST ORDER OF BUSINESS IS A CITY WITH INFRASTRUCTURE, WITH THE DEMAND THAT EXISTS ALREADY AND GO FROM THERE. EXPECTED A YOU ACTUALLY ANNOUNCED YOU’RE GOING TO BE GOING INTO LAS VEGAS. THAT IS YOUR SECONDARY MARKET. IN CLOSING, GOVERNOR, DO YOU THINK THAT THE ROAD IS A MIX OF POLICY AND TECHNOLOGY? >>TECHNOLOGY? YES. ABSOLUTELY. AND I THINK THE POLICY WILL ADDRESS THE UNDERSERVED COMMUNITY BUT I ALSO THINK THE TECHNOLOGY IS SO DISRUPTIVE IT WILL BRING DOWN THE COST OF TRANSPORTATION SO MUCH YOU WILL SEE EMPLOYERS FOR EXAMPLE GIVING SUBSCRIPTIONS TO THEIR EMPLOYEES WHO MAY COME FROM UNDERSERVED COMMUNITIES TO BE UP TO GET TO WORK THROUGH THE SERVICE PROPONENT OF THINGS BECAUSE THEY HAVE TO PAY FIVE CENTS A MILE IS ALMOST FREE AS OPPOSED TO SIX DEVICES PER MILE WHICH IS WHAT WE PAY RIGHT NOW. THE TECHNOLOGY IS SO DISRUPTIVE IT WILL BE INTERESTING TO SEE HOW MUCH POLICY INTERVENTION YOU NEED. >>WE COULD KEEP TALKING BUT WE HAVE TO GO. IS JORDAN IS STARING AT ME OVER THERE. THANK YOU SO MUCH. >>THANK YOU. >>[ APPLAUSE ] >>THANK YOU SO MUCH. IT’S A TRANSLATION WE HAVE TO GET THINGS RUNNING ON TIME, RIGHT FOLKS? >>COOL, JORDAN. >>I WAS GIVEN CONTRADICTORY ADVICE, WE HAVE TO DO A CHAIR CHANGE AND ALSO WE ARE RUNNING LATE SO BE REALLY QUICK. HEARS ME VAMPING AND BEING QUICK AT THE SAME TIME. BECAUSE I’M SO SKILLED AT EMCEEING. NOT REALLY. IT’S PRETTY DIFFICULT IN TODAY’S UNIVERSE TO THINK OF A BUSINESS THAT CAN BOTH DO GOOD FOR THE WORLD, AND ALSO TURN A PROFIT. IT’S NORMALLY ONE OF THE OTHER. AND OUR NEXT GUEST HAS MADE IT HIS GOAL TO DO BOTH AT ONE TIME. SO TO LEARN A LITTLE BIT MORE ABOUT THAT, I WOULD LIKE US TO PLEASE WELCOME TO THE STAGE THE CHAIRMAN AND CO-CEO OF SALESFORCE, AND YOUR MODERATOR, A SLOW CLAP FOR THEM TO FINISH THE CHAIR CHANGE. >>WELCOME WELCOME. >>LET’S CHAT ABOUT A FEW THINGS HERE. A COUPLE THINGS TO TALK ABOUT, YOU HAVE A NEW BOOK THAT IS COMING OUT SOON CALLED TRAILBLAZER, I HAD MY SISTER PUT THESE IN SO IT LOOKS LIKE I DID MY HOMEWORK. I ACTUALLY READ IT. I READ IT AND ENJOYED IT. LET’S TALK ABOUT LOTS OF THINGS IN THERE, ONE OF THE THINGS I MOST CARE ABOUT TO START OFF WITH, I THINK MANY PEOPLE IN THE ROOM ARE EITHER IN THE PROCESS OR HAVE RAISED MONEY, IS BEEN ABOUT 20 YEARS, SINCE IT HAD TO RAISE MONEY. HOW DO YOU THINK THE ENVIRONMENT HAS CHANGED? >>I THINK IT IS CHANGING. WHEN WE WERE RAISING MONEY NO ONE WOULD GIVE US MONEY. THAT WAS DIFFICULT. WE RACED AT ALL PRIVATELY THROUGH INDIVIDUALS. I WAS LUCKY THAT I HAD SOME RICH FRIENDS. IF I DID NOT, I WOULD NOT HAVE BEEN ABLE TO GET THE COMPANY GOING. NO ONE ON SANTA ROSA GIVE ME ANY MONEY. >>WHAT DID THEY WERE THESE ESCADA? >>I THINK THEY DID NOT UNDERSTAND THIS INCREDIBLE OPPORTUNITY FOR CLOUD COMPUTING. THEY DID NOT SEE THIS WOULD BE A COMPANY WITH 45,000 EMPLOYEES AND MORE THAN $100 BILLION MARKET CAP. TOP-FIVE SOFTWARE COMPANY, THEY COULD NOT SEE IT. THAT WAS AN AMAZING MOMENT IN TIME. WHERE I WAS GOING IN AND OUT OF THESE VENTURE CAPITALIST OFFICES, WITH NO ENERGY, NEW DEAL, THE OPPORTUNITY. AND I FOUND FRIENDS OF MINE, IN SAN FRANCISCO, AND JAPAN, AND IT WAS PRIVATE MONEY. >>IF YOU THINK BACK TO THAT TIME VERSUS, SHORTLY THEREAFTER, YOU GOT YOUR MONEY AND WENT INTO, WHAT IS YOUR PRIMARY GOAL? AFTER IT WAS SO HARD TO RAISE MONEY. WHAT WAS YOUR FIRST PRIMARY GOAL? >>I THINK FOR US, WE HAD A VISION THAT WAS THREE THINGS. WE WANTED TO BUILD A NEW TECHNOLOGY MODEL, NOW WE CALL THE CLOUD, TOO, WE HAVE A NEW BUSINESS MODEL WHICH IS OF SCRIPTURE SHOULD, AND ORIENTATION AROUND THE CUSTOMER. THAT WAS VERY DIFFERENT. TWO DECADES AGO. AND THREE, WE HAD AN IDEA THAT YOU COULD IMMIGRATE A SET OF VALUES INTO OUR BUSINESS, THAT OUR VALUES WOULD CREATE VALUE. THAT WE WOULD TAKE THIS ONE 11 MODEL, THAT I’D COME UP WITH, 1% OF EQUITY, 1% OF ALL OF OUR PRODUCT, 1% OF ALL OF OUR EMPLOYEES TIME, AND IT WAS EASY BECAUSE WE HAD NO EQUITY IN A PRODUCT, NO EMPLOYEES, BUT TODAY, WE HAVE DONE 4 MILLION HOURS OF VOLUNTEERISM, GIVEN AWAY ONE THIRD OF THE BILLION DOLLARS, WE HAVE ALSO RUN 45,000 NONPROFITS AND NGOS ON THEIR SERVICE FOR FREE. ABOUT $1 BILLION A PRODUCT HERE. IT WAS A SEGUE INTO A DIFFERENT TYPE OF BUSINESS FOR US. AT THAT POINT WE REALIZED THAT OUR BUSINESS WAS REALLY MORE THAN JUST ABOUT A SHAREHOLDER RETURN. THAT OUR BUSINESS WAS BECOMING ABOUT A STAKEHOLDER RETURN. BUT YES, WE HAVE THESE INCREDIBLE INVESTORS, PEOPLE WHO HAVE GIVEN US MONEY, THAT HAVE THIS GREAT RETURN, SINCE WE WENT PUBLIC IN 2004 WE HAVE HAD A 3000 PLUS PERCENT RETURN. IT HAS BEEN A VERY GOOD RETURN. BUT WE’VE ALSO HAD AN EXCELLENT STAKEHOLDER RETURN AS WELL. WE BEEN ABLE TO GIVE TO OUR PUBLIC SCHOOLS, WE’VE BEEN ABLE TO SUPPORT OUR EMPLOYEES AT SCALE. THE THINGS THAT WE DO AS AN ORGANIZATION, WE REALIZE IT IS MORE THAN JUST OUR STAKEHOLDERS, SHAREHOLDERS, IT’S OUR EMPLOYEES, CUSTOMERS, IT’S OUR PARTNERS, IF YOU ARE IN SAN FRANCISCO AND YOU ARE THE LARGEST EMPLOYER, LIKE WE ARE, IT IS ALSO GOING TO BE ABOUT THE HOMELESS. YOU CAN SEE THAT WHEN WE WALK IN HERE, DOWN THE STREET, YOU ARE LOOKING INTO THE EYES OF THOSE PEOPLE WHO ARE ON THE STREET WHO, THEY HAVE TO BE ONE OF MY KEY STAKEHOLDERS. THAT IS WHY WE FOUGHT SO AGGRESSIVELY FOR PROPOSITION C. >>YOU MENTIONED THAT. >>THAT IS VERY IMPORTANT TO US. WHO ARE YOUR KEY STAKEHOLDERS? YES IT IS GOING TO BE THOSE PUBLIC SCHOOLS, IT IS GOING TO BE THE WOMEN INSIDE YOUR ORGANIZATION. THEY ARE GOING TO BE A KEY STAKEHOLDER THAT’S WHY WE FIGHT FOR EQUAL PAY FOR EQUAL WORK. THAT IS WHY THAT IS SO IMPORTANT TO US. IT COULD BE FOR OUR LGBT QUEUE EMPLOYEES, THAT IS WHY WE WENT TO INDIANA. IN ALL CASES WE ARE LOOKING AT NOT JUST ERIC SHAREHOLDER RETURN, WE ARE LOOKING AT OUR STAKEHOLDER RETURN, THAT HAS REALLY CREATED A COMPANY THAT WE CAN LOOK BACK AND SAY NOT ONLY, HAVE WE DONE WELL BUT WE’VE ALSO DONE GOOD. THAT IS REALLY WORKED FOR US AS A BUSINESS, WE WENT TO ADVOCATE THAT. AND FOR OTHER ENTREPRENEURS STARTING THEIR BUSINESSES, TO BE CONSCIOUS AND THINK ABOUT WHAT KIND OF BUSINESS ARE YOU CREATING? WHAT IS REALLY IMPORTANT TO YOU? AS ENTREPRENEUR. >>I THINK THAT’S AN INTERESTING SEGUE INTO STUFF THAT IS GOING ON NOW. WE WILL, AT THE WORK SITUATION, ADAM NEWMAN HAS BEEN TAKEN OUT OF CONTROL OF THE COMPANY. AND CERTAINLY, IT IS NOT GOING TO PLAN, SOMETHING’S HAPPENED, AND THE COMPANY CULTURE AT WE WERE, HAS LED ASTRAY, THIS IS NOT THE FIRST TIME WE’VE SEEN THIS IN RECENT YEARS. I WONDERED WHAT YOU THINK ABOUT THIS PULL TO THE FOUNDER FIRST MENTALITY, THE FOUNDER DOES BEST, THEY DESERVE TO HAVE COMPLETE CONTROL OVER THE COMPANY, AND HOW THAT COMPARES TO THE SALES FORCE APPROACH. >>I THINK, I SAID THIS IN THE NEW YORK TIMES, WHICH IS THAT, SHAREHOLDER RETURN, IS GOING TO BE TABLE STAKES, YOU HAVE TO HAVE A SOUND BUSINESS. YOU HAVE TO HAVE A SOUND TECHNOLOGY MODEL, BUSINESS MODEL, YOU HAVE TO TAKE CARE OF YOUR EMPLOYEES, YOU HAVE TO DO THE TRADITIONAL BUSINESS PIECES, BUT THEN YOU HAVE TO THINK ABOUT WHAT KIND OF BUSINESS ARE YOU BUILDING. THAT IS WHERE THE STAKEHOLDER RETURN STARTS TO COME TOGETHER. AND WHEN YOU GET THESE THINGS, THESE TWO THINGS WORKING, YOU’RE GOING TO HAVE A FANTASTIC COMPANY THAT IS GOING TO BE SOLID. BUT YOU HAVE TO OPERATE WITH THAT LEVEL OF VALUES AND THAT LEVEL OF ETHICS. AND IF YOU ARE NOT, THEN YOU’RE NOT REALLY GOING TO EXIST I THINK IN THIS ENVIRONMENT. I REALLY STRONGLY BELIEVE THAT CAPITALISM AS WE KNOW IT IS DEAD. THAT WE ARE GOING TO SEE A NEW KIND OF CAPITALISM. AND THAT NEW KIND OF CAPITALISM THAT WILL EMERGE IS NOT THE MILTON FRIEDMAN CAPITALISM, THAT IS JUST ABOUT MAKING MONEY. AND IF YOUR ORIENTATION IS JUST ABOUT MAKING MONEY, I DON’T THINK YOU ARE GOING TO HANG OUT VERY LONG AS A CO OR FOUNDER OF THE COMPANY. YOU HAVE TO BE MORE THAN THAT IN TODAY’S WORLD. YOU CERTAINLY HAVE TO BE MORE THAN THAT IN SAN FRANCISCO. IN OUR TECH INDUSTRY AS WELL. >>THAT’S BECAUSE YOU DO THAT SUPPORT OF YOUR EMPLOYEES, EITHER FAITH, THE TRUST IN WHAT YOU ARE TRYING TO DO. >>OF TRUST IS NOT YOUR HIGHEST VALUE THEN YOU HAVE TO ASK YOURSELF WHAT IS? I THINK THAT IS THE EXISTENTIAL ISSUE THAT IS ON THE MINDS OF A LOT OF FOUNDERS IN OUR INDUSTRY WHO ARE GOING THROUGH VERY SERIOUS CHALLENGES RIGHT NOW WITH SOCIETY. THE QUESTION IS, WHAT IS YOUR HIGHEST VALUE? IS YOUR HIGHEST VALUE TRUST? IF IT IS NOT TRUST, WHAT IS IT? IF YOU DON’T KNOW, THOSE PEOPLE AROUND YOU, YOUR CUSTOMERS, YOUR PLOYS, ALL THE KEY STAKEHOLDERS THAT I JUST WENT THROUGH, YOU’RE GOING TO FIGURE IT OUT, AND THEY’RE GOING TO SAY, THIS IS NOT THE PERSON I MAYBE WANT TO WORK FOR OR INVEST IN. OR BE A PART OF. AND IS EVIDENCE OF THAT, YOUR EMPLOYEES WILL START WALKING OUT, WE’VE SEEN THAT THIS YEAR. IN SILICON VALLEY. YOUR CUSTOMERS WILL WALK OUT. YOUR INVESTORS WILL WALK OUT. WE SEE THAT WE HAVE THE STORIES. AND THIS IS WHERE EVERY ENTREPRENEUR NEEDS TO WAKE UP AND HEAR THAT MESSAGE. THAT THEY NEED TO THINK ABOUT WHAT ARE THEIR HIGHEST VALUES? THAT THEY ARE REALLY GOING TO ANCHOR THE COMPANY TOO? AND IF THEY DO NOT, THEN THEY WILL PAY A PRICE. AND WE SEE THAT OVER AND OVER AND OVER AGAIN. AND IS OFTEN TIMES, IT GETS PLAYED OUT IN THIS COURT OF PUBLIC OPINION THAT YOU CAN SEE THE PEOPLE SAY THIS IS NOT A COMPANY OR A PERSON THAT WE WANT TO DO BUSINESS WITH. BECAUSE OF COPY VALUE SYSTEM. >>RIGHT. DO YOU THINK THE MODEL, THIS MODEL OF HYPER SCALE VERSUS MENTALITY OF, WE’RE GOING TO GIVE YOU A BUNCH OF MONEY TO HYPER CHARGER BUSINESS, IT SEEMS VIABLE SO FAR. YOU’RE GOING TO JUICE IT UP WITH THIS DO YOU THINK IT ADDS UNDUE TORSION WHERE PEOPLE CANNOT BUILD IN THOSE VALUES? I CANNOT TAKE THE TIME TO BUILD THEM IN EARLY ON? >>I DON’T THINK IT’S EVER ABOUT THE MONEY. I THINK IT IS ALWAYS ABOUT THE CULTURE. PETER DRUCKER, WHO IS A FANTASTIC PROFIT, SOME I LEARNED A LOT FROM, SAID IT WELL, HE SAID THAT CULTURE, EACH STRATEGY FOR BREAKFAST. THAT BEAT YOU HAVE TO LOOK AT THE CULTURE OF YOUR COMPANY. YOU HAVE TO LOOK AT THE CULTURE OF YOURSELF, AS A LEADER. WHO ARE YOU, WHAT IS INSIDE YOUR HEART? WHAT DO YOU REALLY WANT? FOR YOURSELF, FOR YOUR COMPANY, FOR YOUR INDUSTRY, YOUR COMMUNITY, WHAT ARE YOU TRYING TO DO FOR OTHERS. IS TRYING TO IMPROVE THE STATE OF YOUR CHECKBOOK? OR THE STATE OF THE WORLD? AND I THINK IT IS A SLIGHT SHIFT FOR PEOPLE. I DO THINK THAT WE COME OUT OF THE WORLD OF MILTON FRIEDMAN, WE ARE THINKING, SHAREHOLDER RETURN, IT IS JUST ABOUT MAKING MONEY. >>MAYBE THAT’S THE WAY IT WAS >>BUT THAT’S NOT WHERE WE ARE GOING. WE ARE GOING INTO A WORLD WHERE WE ARE REALLY GOING TO BE LOOKED AT BY OUR VALUES. AND THIS IS REALLY IMPORTANT. THIS IS WHAT I TRY TO WORK ON IN MYSELF. IN MY OWN LEADERSHIP AND OUR COMPANY. IT STARTS WITH US, WE HAVE TO BE THAT EXAMPLE. AND THEN, WE ALSO HAVE TO, IT’S A CHALLENGE, I READ ABOUT THAT IN THE BOOK YOU MENTIONED. THAT I’M WRONG ABOUT THESE THINGS BY LISTENING TO OUR EMPLOYEES, CUSTOMERS, OUR PARTNERS, WE ARE ABLE TO BE GUIDED TO THE RIGHT PLACE. >>I’M STRUCK BY HOW MANY TIMES IN THE BOOK YOU CAME TO THIS REALIZATION THAT SOMETHING WAS AWRY, SOMETHING WAS AMISS. WAS DIRECTLY FROM AN EMPLOYEE. IN EFFECT, OR THINGS LIKE PAY DISPARITY, THE -RIGHTS ISSUE CAME UP. AND THE CRISIS WAS AVERTED. >>THIS IS THE FOURTH BOOK. THE FIRST WAS COMPASSION KETTLES IN. COMPASSION CAPITALISM, IT LATER FUNDAMENTAL TENETS. WE ARE TRYING TO CREATE COMPASSIONATE CAPITALISM. THAT’S 20 YEARS AGO. THAT WE LAID IN A SECOND BOOK WHICH WAS THE BUSINESS OF CHANGING THE WORLD. THAT WAS REALLY ABOUT SAYING, YOU KNOW WHAT, HERE ARE OTHER COMPANIES WERE DOING IT RIGHT. THAN THREE WE READ ABOUT BEHIND THE CLOUD, THAT WAS HOW WE GOT FROM AN IDEA TO 1 BILLION IN REVENUE. THAT IS SOMETHING EVERY ENTREPRENEUR WANTS TO LEARN ABOUT. WE WROTE A HOW-TO BOOK ON HOW TO DO THAT. THIS IS A BOOK ON HOW WE THEN WENT FROM 1 BILLION IN REVENUE, TO GO WITH HUMANKIND SAID THIS YEAR WE ARE GOING TO DO ABOUT 17 BILLION. THAT SHIFT, WHEN YOU START TO OPERATED SCALE, YOU NEED TO THINK ABOUT YOUR VALUES. YOU NEED TO LISTEN, MUCH MORE DEEPLY. THIS CONCEPT OF DEEPER LISTENING, CULTIVATING YOUR BEGINNER’S MIND. REALLY PAY ATTENTION IT HAS ALWAYS AMAZING THINGS, START HAPPENED YOU, YOUR EGO, AND YOUR ARROGANCE, AND ALL THESE THINGS AND REALLY START TO TAKE YOU OVER. THAT IS WHERE IT IS LIKABLE, HOW DO I GET BROKEN BACK DOWN SO THAT I CAN LISTEN. IF YOU CANNOT HAVE A ONE-ON-ONE CONVERSATION WITH SOMEONE, IF YOU CANNOT LISTEN TO ANY EMPLOYEE OR ANY CUSTOMER OR ANY STAKEHOLDER I WILL GIVE YOU AN EXAMPLE. I WAS AT A PUBLIC SCHOOL LAST WEEK BECAUSE WE DO A LOT OF WORK HERE IN THE SAN FRANCISCO AND OAKLAND PUBLIC SCHOOLS. WE’VE GIVEN ABOUT $67 MILLION TO THE PUBLIC SCHOOLS IN THE LAST SEVEN YEARS. HAS BEEN AN EXCITING PROGRAM THAT WE ARE PART OF. I WAS GIVING THE SPEECH I WAS ON THE PLAYGROUND AT A MIDDLE SCHOOL, I’M GIVING THE SPEECH I’M GIVING TO YOU. AND EVERYBODY HERE. AND THE DIFFERENCE IS THESE KIDS ARE MIDDLE SCHOOL KIDS, AND I’M LOOKING IN THEIR EYES, AND I FEEL THAT IN MY HEART. THESE ARE MY STAKEHOLDERS. IF MY COMPANY IS NOT BENEFITING THEM, THEN WHO IS IT BENEFITING? AND THAT IS A KEY STAKEHOLDER OF MY. I AM LOOKING INTO THEIR EYES. SAYING, I AM HERE, TO SUPPORT YOU. ONE OF THE REASONS WE HAVE A K- 12 COMPUTER SCIENCE PROGRAM IN SAN FRANCISCO, AND SAN FRANCISCO IS NOW THE HIGHEST RATED MATH PROGRAM OF ALL THE METRO SCHOOLS IN CALIFORNIA. I THINK IS BECAUSE OF THESE INCREDIBLE INVESTMENTS WE HAVE BEEN ABLE TO DO IN PARTNERSHIP WITH SAN FRANCISCO UNIFIED SCHOOL DISTRICT AND THE OAKLAND UNIFIED SCHOOL DISTRICT WITH THEIR CORE PRINCIPLES AND SUPERINTENDENTS. THAT IS THE GIFT OF HAVING A BUSINESS. THE BUSINESS IS THE GREATEST PLATFORM FOR CHANGE. THAT IS WHAT I LOVE ABOUT MY BUSINESS AFTER 20 YEARS. IT’S WHAT GETS ME EXCITED ABOUT GETTING UP AND GOING TO WORK EVERY DAY. IS I CAN IMPROVE THE WORLD THROUGH MY BUSINESS. NOT ONLY BUILD GREAT PRODUCTS, HAVE GREAT CUSTOMER RELATIONSHIPS, HAVE A GREAT SHOT OF HER SHOULDER RETURN, BUT I CAN HAVE A GREAT STAKEHOLDER RETURN ALSO. I CAN USE MY BUSINESS, AS A PLATFORM FOR CHANGE. AND THAT IS WHAT IS EXCITING TO ME. >>IN THAT VEIN, WHAT DO YOU THINK THE WORLD THINGS WHEN THEY LOOK AT SILICON VALLEY, SAN FRANCISCO ESPECIALLY. THE DIFFICULTIES THAT SAN FRANCISCO IS UNDERGOING RIGHT NOW, IN DEALING WITH ITS HOMELESS POPULATION, WITH THE CITY INFRASTRUCTURE ON SOME LEVELS, SUPPORT PROGRAMS. IT SAYS THIS IS THE HEART OR THE HEAD OF SILICON VALLEY, IN SOME WAYS, ALL THESE TECH COMPANIES ARE COMING FROM THERE. THEY ARE CREATING PRODUCTS FOR THE WORLD. WHY SHOULD WE LISTEN? >>YOU CAN SEE IT IN THE BATTLE THAT WENT DOWN EXACTLY A YEAR AGO. WHERE I WAS FIGHTING FOR PROPOSITION C. WE PUT SEVEN AND DOLLARS INTO IT. THIS IS WHAT WE WANTED TO ACHIEVE, WE PUT $7 MILLION INTO IT. WE WANTED TO TAX OURSELVES, WE WANTED TO PAY ONE HALF OF 1% OF OUR REVENUES TO DIRECTLY ADDRESS THE HOMELESS PROBLEM WHICH WE NEED TO MORE FUNDING FOR IN SAN FRANCISCO. AND THIS WAS GOING TO GIVE $30 MILLION PER MONTH AND I WAS FIGHTING SOME OF THE OTHER LEADERS IN SILICON VALLEY WHO DO NOT WANT TO GIVE UP THEIR PROFITS FOR THE REVENUE. AND THEY DON’T CARE. AND THEY ARE NOT INVESTING IN LOCAL PROGRAMS. THEY ARE NOT SUPPORTING KIDS. IT IS A TALE OF TWO WORLDS. AND I FEEL THAT VERY STRONGLY. IT PLAYED OUT REALLY WELL. 62% OF THE VOTES IN SAN FRANCISCO, CAME IN FOR PROPOSITION C IT IS STILL NOT PAYING OUT, BECAUSE WE DID NOT GET TO 66%, THAT IS WHY IT IS IN THE COURTS, AND THAT THE COURTS ACTUALLY DETERMINED THAT WAS A FAIR BOOK, THEN IT WILL BE ENACTED, WHICH IS WHAT WE ALL WENT. THIS IS WHERE WE ARE. WHY WAS EVERYONE NOT ON THAT BANDWAGON? BUT YOU HAD BASICALLY PEOPLE IN SILICON VALLEY, OR INVESTORS, WHO ARE ANTI-TAX, WHO DO NOT REALIZE, IF WE ARE CONSTANTLY OPTIMIZING INCOME TAXES, AND CORPORATE TAXES, THAT YOU ARE GOING TO GET STRIPPED OUT, THE BOTTOM OF YOUR SOCIAL PROGRAMS. AND THEY DON’T SEEM TO CARE. THEY DON’T SEEM TO CARE THAT WE DON’T HAVE ENOUGH TO BE ABLE TO GIVE TO THESE PROGRAMS. THAT IS WHAT HAS TO CHANGE. NOT JUST IN OUR CITY, BUT IN OUR INDUSTRY AND PROBABLY EVERY INDUSTRY. SOME ARE CHANGING AND SOME ARE STILL RESISTING. I THINK IT IS VERY MUCH EVIDENCE OF WHAT HAPPENED A YEAR AGO. >>HOW DO YOU THINK WE CHANGE THOSE MINDS OF THOSE PEOPLE SO THAT THE NEXT TIME AN IMPORTANT ISSUE LIKE PROPOSITION C COMES UP HOW DO YOU GET THEM TO UNDERSTAND, IN THE GRAND SCHEME OF THINGS, WE MAKE A LOT OF MONEY, THIS IS NOT THAT MUCH TO PAY TO HELP BUILD THIS FOUNDATION AND KEEP IT. >>IT HAS TO COME ULTIMATELY FROM THEM AS LEADERS, AND THEN IT HAS TO COME FROM THEIR EMPLOYEES OR THEIR CUSTOMERS, OR THE PARTNERS. AND EACH ONE OF THE GAMBITS THAT WE GO THROUGH IN THE BOOK, UNTIL THE STORIES, PROPOSITION C IS ONE THERE ARE MANY STORIES. WE ARE FIGHTING. THOSE FORCES. THEY ARE OUT THERE. AND IN EACH CASE, THEY LINE UP AGAINST US. AND IN SOME CASES WE WIN IN THAT IN SOME CASES WE LOSE. BUT WE KNOW THAT WE ARE ULTIMATELY ON THE RIGHT SIDE OF HISTORY. WHAT ARE WE GOING TO DO? LEAVE ALL THESE HOMELESS PEOPLE ON THE STREETS? THIS IS RIDICULOUS WHAT IS GOING ON. THEY ARE TELLING US IS NOT A PROBLEM, 17%, IT IS UP 17%, SINCE WE WERE WORKING A YEAR AGO. THAT IS WHAT IS CRAZY. AND YET, WE ARE STILL FIGHTING THIS PEOPLE. AND THEY ARE SAYING ALTHOUGH WE ARE NOT GOING TO DO ANYTHING TO LOWER OUR TAXES EVEN FURTHER, THEY WERE OUR TAXES EVEN FURTHER PLEASE. >>I AGREE. IT’S A JOKE. >>AN INTRODUCTION TO YOUR BOOK YOU SAY THAT WHEN CEOs WON’T TAKE RESPONSIBILITY THEN I THINK YOU HAVE NO CHOICE FOR THE GOVERNMENT BUT FOR THE GOVERNMENT TO COME IN. DO YOU THINK THAT TIME IS NOW FOR FACEBOOK? >>I BEEN SAYING THAT FOR TWO YEARS. FACEBOOK IS THE NEW CIGARETTES. IT SHOULD BE REGULATED. I SAID THAT BY THE WAY IN JANUARY >>[ APPLAUSE ] >>[ CHEERING ] >>THE FIRST TIME I SAID THAT NOBODY APPLAUDED. >>I THINK PEOPLE REALIZE NOW. >>I SAID THAT JANUARY 2018 THEY HAD NOT SEEN KIM ANALYTIC A HOBBY AND NOT WATCH THE BIG ACT ON NETFLIX, THEY NOT SEEN THE 50 OR 100,000 DEVELOPERS THEY HAVE NOW FLIPPED OFF BECAUSE THEY ALL OF THE DATA HAS BEEN HARVESTED AND USED AGAINST THEM. THEY HAD NOT HEARD ABOUT THAT CAMBRIDGE ANALYTIC, WAS USING THIS DATA TO IDENTIFY THE PERSUADERS TO GO IN AND SHIFT THE ELECTION, IN A CERTAIN DIRECTION. NOT JUST OUR ELECTION HERE BUT OTHER ELECTIONS IN OTHER COUNTRIES AS WELL. THAT WAS AMAZING. AND THE GOVERNMENT HAS TO STEP IN, ULTIMATELY, WE ALSO NEED, WE HAVE NOW A CALIFORNIA PRIVACY LOCK WHICH IS SOMETHING I SUPPORTED AND HAPPY TO SEE ENACTED. WE NEED A NATIONAL PRIVACY LAW HERE IN THE U.S. AS WELL. THIS IS A CRITICAL THINK THAT ALL OF US SHOULD BE ACTING FOR. OTHERWISE, YOU’RE GOING TO GET A PATCHWORK OF PRIVACY LAWS FROM EVERY STATE IN OUR COUNTRY, AND I DON’T THINK THE INDUSTRY WANTS TO HAVE TO NAVIGATE THAT. THAT IS A CRITICAL PART OF WHERE WE ARE GOING. WE HAVE GOT TO GET OUR PRIVACY AND OUR DATA LOCKED DOWN. SO THAT WE ALL KNOW EXACTLY WHERE WE ARE GOING. AND WHEN IT COMES TO REGULATION, THE GOVERNMENT IS DOING TOO LITTLE, TODAY. THEY SHOULD BE STEPPED IN NOW, AND THEY SHOULD BE WORKING HARD TO MAKE THOSE CHANGES. AND SOME OF THOSE, SOME OF THOSE LEADERS UNDERSTAND THAT. AND SOME OF THEM ARE STILL WAITING TO UNDERSTAND THAT. >>YOU THINK BEING A PUBLIC COMPANY FOR THE PAST 15 YEARS HAS MADE YOU SAFER IN SOME WAYS? I THINK A LOT OF PRIVATE COMPANIES WE ARE SAYING, GOVERNANCE ISSUES ALL OVER THE PLACE. A RECENT EXAMPLE, WeWork, AND IN HUBER, AND OTHER COMPANIES. WHILE, I CAN’T BELIEVE THIS IS THE WAY THEY ARE RUNNING THIS. >>AND ALL OF THOSE CASES, MY OPINION HAS BEEN A KNIFE DIRECTLY ADVISED MANY OF THOSE CEOs DIRECTLY, THEY ARE STAYING PRIVATELY TOO LONG. THEY DO NOT UNDERSTAND WHAT THE PUBLIC MARKETS DO IS IT’S THE GREAT RECKONING. BUT IT CLEANSES THEIR COMPANY OF ALL THE BAD STUFF THAT THEY HAVE. IT FORCES THEM TO KIND OF APPLY THE REGULATIONS NECESSARY TO HAVE A CLEAN COMPANY. WHETHER IT IS THEIR IMPLEMENTATION, WHETHER AS SEC REGULATIONS, IT HELPS THEM TO CLEAN THINGS UP. AND FOR THESE COMPANIES THAT DO NOT DO THAT, IT IS WAY TOO LONG, BY THE TIME THEY GO PUBLIC, IT IS TOO LATE IN MANY CASES. THEY HAVE NOT MADE THE CHANGES TO THEIR BUSINESS MODEL, THEIR TECHNOLOGY MODEL, OR THE STAKEHOLDER MODEL, AND THEN, MAYBE THEY HAVE THAT POINT, IS OVER. THEY ARE NOT GOING TO RECOVER. I THINK COMPANIES, WE WENT PUBLIC, WE WERE $100 BILLION IN REVENUE. THAT WAS ABOUT THE RIGHT TIME, AND THAT WAS A GOOD TIME. BECAUSE WE ARE SMALL ENOUGH THAT WE COULD MAKE THOSE CHANGES AND ADJUSTMENTS AND THERE’S A LOT OF THOSE, THEY CONTINUALLY HAPPEN. AND THAT INCLUDES THE PEOPLE ON YOUR TEAM, YOUR CHIEF FINANCIAL OFFICER, YOUR LAWYERS, THE PEOPLE WHO ARE REALLY KEEPING YOU, UM, ON THE STRAIGHT AND NARROW. BUT ALSO YOU WANT TO CREATE A GREAT COMPANY. AND GREAT COMPANIES IN MANY CASES ARE THE PUBLIC COMPANY’S. NOT IN ALL CASES. THERE SOME GREAT PRIVATE COMPANIES. BUT THE VAST MAJORITY OF THE GREAT COMPANIES THAT ARE OUT THERE ARE PUBLIC. >>EXCELLENT. THANK YOU VERY MUCH. I WOULD TAKE ANOTHER HALF HOUR BUT I’VE ALREADY GOT OVERTIME. WE APPRECIATE IT. THANK YOU. >>[ APPLAUSE ] >>AS COMPANIES TRANSITION, MORE ATI’S CREATED ACROSS THE ORGANIZATION. WITH HIS INCREASING CAN BECOME MORE CHALLENGING FOR DEVELOPERS TO FIND THESE INTERNAL APIs AND TO USE THEM WHEN THEY ARE DEVELOPING NEW SOFTWARE. THAT IS WHERE RAPID API FOR TEAMS CAN HELP. RAPID API FOR TEAMS ENABLES DEVELOPMENT TEAMS TO PUBLISH THEIR INTERNAL APIs INTO A PRIVATE WORKSPACE. DEVELOPERS CAN FIND ANY INTERNAL API AND VIEW IS DOCUMENTATION, TESTED AND CONNECT DIRECTLY. OR COLLABORATE AND SHARE INFORMATION ABOUT THE API RIGHT IN RAPID API. TEAM RIVERS CAN ALSO SUBSCRIBE TO ANY PUBLIC API AVAILABLE ON THE RAPID API MARKETPLACE AND THE ENTIRE TEAM CAN SEE AND USE THAT’S INSTRUCTION. THIS WAY YOU ONLY PAY ONCE FOR ANY API YOUR TEAM USES. RAPID API FOR TEAMS MAKES IT EASIER TO SHARE AND COLLABORATE ON APIs. GET STARTED TODAY. ON RAPID API.COM/TEAMS. >>LOCAL ENTREPRENEURS, WE USE TECHNOLOGY TO ADDRESS HIS MAC LOCAL TEAMS KNOW THEIR CUSTOMERS BEST AND THEIR BEST PLACE TO MAKE THE RIGHT DECISIONS FOR THEM. WE BEEN OPERATING AS RIGHTIES AND GLOBAL SCALE TO HELP OUR PARTNERS OVERCOME CHALLENGES AND BROTHER COMPANIES. ACTIVE LOVE BUILDING COMPANIES WITH GREAT VALUE, AND MAKE A DIFFERENCE. AS WELL AS OUR INVESTMENTS IN COMPANIES, WE ARE BUILDING MEANINGFUL GLOBAL BUSINESSES AND ONLINE CLASSIFIEDS, FOOD DELIVERY AND RESPECT WE NEVER SIT STILL. WE ACTIVELY SEEK NEW OPPORTUNITIES. TO CREATE VALUE. IT’S WHAT KEEPS US MOVING FORWARD. FOR LADIES AND GENTLEMEN, PLEASE WELCOME YOUR BATTLEFIELD HOST ANTHONY HA. >>YOU ALL KNOW WHAT IT MEANS WHEN I COME OUT AND START SCREAMING AT YOU. THAT’S RIGHT, IT’S TIME FOR ANOTHER SESSION OF THE STARTUP BATTLEFIELD. WE HAVE FIVE MORE STARTUPS PRESENTING FOR YOU, AND THEN WE ARE GOING TO ANNOUNCE THE FINAL IS TONIGHT, AND HAVE THE FINALS TOMORROW BEFORE WE CAN DO ANY OF THAT, I HAVE TO BRING OUT OUR EXPERT JUDGES. FIRST UP WE HAVE NISHA, GENERAL PARTNER AT BB JEEP VENTURES WHICH HE COFOUNDED IN 2014. IN WHICH INVESTS IN CONSUMER TECHNOLOGY STARTUPS WITH AT LEAST ONE FEMALE FOUNDER. NEXT UP WE HAVE A FOUNDING PARTNER AT FEMALE FOUNDER’S FUND, AND EARLY-STAGE FUND INVESTING IN TECH COMPANIES, STARTED BY WOMEN. SHE BEGAN HER CAREER IN TECHNOLOGY AS A COFOUNDER EXCLUSIVELY IN A HYBRID SALE e- COMMERCE MARKET PLACE. NEXT WE HAVE AN ECONOMIC MANAGING DIRECTOR AT RED POINT VENTURES. AFTER JOINING IN 2018 SHE HAS WORKED AT CHARLES RIVER VENTURES, THE COMPANY AND MOST RECENTLY AT HUBER FREIGHT. NEXT WE HAVE ARTICLES, COFOUNDER AND MANAGING GENERAL PARTNER AT MAC VENTURE CAPITAL WHICH YOU MAY KNOW BY ITS FORMER NAME AS CROSS CULTURE VENTURES. IT FINDS ENTREPRENEURS BUILDING THE FUTURE FOR THE REST OF AMERICA, A FORMER COP AND FELLOW AND INVESTMENT DIRECTOR AT INTEL CAPITAL. AND OUR FINAL JUDGE IS NOT LATINA, A VENTURE PARTNER AND ENTREPRENEUR AND RESIDENTS AT THE CAPITAL. PRIOR TO JOINING FLUX IN 2017 SHE WAS A GENERAL PARTNER AND AN INVESTMENT MANAGER AT STANFORD UNIVERSITY’S ENDOWMENT. LET’S HEAR IT FOR OUR AWESOME JUDGES. >>ALL RIGHT. >>[ LAUGHTER ] >>THE PLANT IS IN FRONT OF THE DESK WHICH I THINK MEANS I CAN CALL THE FIRST ON ABOUT. THAT IS EVELYN, AMANDA DUNKER AND JEREMY NASSER WILL PRESENT FOR THEM. ONE OUT. >>LAST WEEK THE WORLD CAME TOGETHER FOR THE LARGEST GLOBAL CLIMATE PROTEST IN HISTORY. PEOPLE ARE SO FRUSTRATED AND PRETTY TO STOP. WHAT CAN WE DO? EACH ONE OF US CAN ACTUALLY HAVE A DIRECT POSITIVE IMPACT RIGHT NOW. BY JUST GOING A LITTLE BIT OF FOOD OUTSIDE. THERE’S GREAT NEWS, BECAUSE THE UNITED STATES IS AHEAD OF THE TREND. HOME DEPOT ALONE SAW AN INCREASE IN THEIR GUARDING REVENUE BY $1 BILLION JUST THIS LAST YEAR. BRINGING THEM TO $18 BILLION FOR THE AVERAGE PERSON SPENT $500 PER YEAR ON HOME GARDENING. BUT NOT ALL OF US HAVE A GREEN THUMB. MOST OF US, HAVE A BLACK THUMB. WE ARE OVERWATERING, WE ARE UNDER WATERING, WE ARE JUST DOING IT WRONG. GARDENING IS REALLY HARD. WHAT CAN WE DO? WE ARE HERE TO CHANGE THE STATUS QUO. GARDENING SHOULD NOT BE THIS HARD. SHOULD NOT HAVE TO STRUGGLE TO FIGURE OUT WHAT AM I PLANTING? WHERE MY PLANTING IT? HOW DO I EVEN GET MY PLANS? 20 FERTILIZER? NOT TO MENTION, MOST OF THESE PRODUCTS ACTUALLY HAVE TOXIC CHEMICALS. WHICH IS NOT ONLY BAD FOR YOU, BUT IT IS ALSO BAD FOR THE ENVIRONMENT. WHAT CAN WE DO ABOUT THAT? LUCKILY, WE HAVE A SOLUTION, THAT WILL MAKE GUARDING SO MUCH EASIER. YOU WILL SEE THAT YOU HAVE BEEN WATERING RUN. INTRODUCING AVILA, WE HAVE CREATED THE FIRST FULLY ASSEMBLED SALTWATER REGARDING, THAT YOU CAN JUST BRING ANYWHERE WITH YOU, YOU NEVER HAVE TO BREAK IT DOWN, WE ARE BREAKING THE RULES AND HOW YOU WATER THE PLANTS. ALSO WE HAVE A COACHING APP TO KEEP YOU ACTIVE AND ENGAGED IN ALL OF YOUR QUESTION ANSWERS BEFORE YOU KNOW THAT YOU HAVE THEM. WITH THE PRINTER, WE ALSO WILL INCLUDE THE PLANS AND ATTEND YOUR WARRANTY WITH THAT PLANTER WHICH IS COMPLETELY UNHEARD-OF BECAUSE WE HAVE THAT MUCH CONFIDENCE THAT YOU ARE GOING TO RUSH IT AS A GARDNER. HOW DOES AVALOW WORK? WHAT IS A SELF WATERING? SELF WATERING, WHAT WE’VE DONE IS CREATED A PROPRIETARY PIECE OF HARDWARE SPECIFICALLY IN THE WATER RESERVOIR AND THAT MATERIALS WERE USING TO MAKE WATER TRANSFER, DIETARY, IMMENSELY EFFICIENT. PLANS ARE ACTUALLY ABLE TO USE THEIR OWN NATURAL PRESSURES TO SIGNAL AND DRAW THAT WATER OUT. SO YOU NEVER EVER HAVE TO WORRY, YOUR PLANS ARE GETTING WHAT THEY NEED, BECAUSE THEY HAVE GOT IT COVERED. THEY KNOW EXACTLY WHAT THEY WANT WHEN THEY WANTED. SO YOU CAN GO ON A VACATION, AND NOT WORRY ABOUT IT. BECAUSE WITH THE RESERVOIR IT IS SO EFFICIENT, THAT YOU CAN FILL IT, TAKE A WEEK VACATION, COME BACK, AND YOU ARE COMPLETELY FINE. WHICH IS UNHEARD OF. SO LET’S GO AHEAD AND SEE THIS MYTHICAL GARDEN IN ACTION. LET’S GO TO THE DEMO PLEASE. HERE WE HAVE JEREMY, HE IS JUST ORDERED AND RECEIVED HIS AVALOW. IT IS COME FULLY ASSEMBLED, AND WITH SOIL. WHICH MEANS HE DOES NOT NEED ANY TOOLS. I KNOW FOR THOSE OF YOU THAT LIVE IN NEW YORK, OR IN A DENSITY FOR YOU DON’T HAVE ACCESS TO A HARDWARE STORE, IT IS SUPER EASY, THIS IS GOING TO MAKE YOUR LIFE THAT MUCH EASIER. ALSO WITH THIS IT HAS AMAZING CONNECTION POINTS, YOU CAN POP AND ACCESSORIES FOR VERTICAL GROWING, TO MAXIMIZE YOUR SPACE. AS WELL AS COLD FRAMES, SO THAT IF YOU’RE LIVING IN CHICAGO, OR NEW YORK, YOU CAN GROW YEAR- ROUND. ALSO WITH IT, BUT YOU CAN SEE, IS THE WATER RESERVOIR IS ACTUALLY BUILT IN UNDERNEATH. AND ALSO IS COMPLETELY INSULATED, TO HELP KEEP THAT TEMPERATURE REGULATED. BECAUSE IN THIS CASE, SIZE MATTERS. THAT’S WHERE A LOT OF PLANTERS GO WRONG, THEY DO NOT TAKE INTO CONSIDERATION YOUR CLIMATE. YOU MAY BE IN LOUISIANA, BUT IT DOES NOT MEAN YOU SHOULD BE NOT BE ABLE TO RESUME. JEREMY IS GETTING AHEAD OF THE GAME, YOU STARTED TO PLANT. HE IS USING OUR COACHING SUSPICION WHICH IS INCLUDED EVERYTHING, HE HAS CREATED THIS BOX, BASED ON HIS CLIMATE AND WE WORK WITH HIM TO MAKE SURE HE IS GEARED UP FOR SUCCESS. SO JEREMY ACTUALLY HAS A QUESTION. HE DOES NOT WANT TO DO ABOUT THE WATER. THIS IS THE FIRST TIME HE HAS DONE THIS CRAZY WATER RESERVOIR THING. HE IS GOING TO GO AHEAD AND CONNECT TO THE APP. IF I CAN GET THE CAMERAS TO DO THAT AS WELL. HE IS WORKING OUT TO ASK A QUESTION IN REAL TIME. BECAUSE WHAT YOU DO IF YOU HAVE A QUESTION RIGHT? YOU CAN TAKE FOREVER. YOU CAN GET LOST ON THE INTERNET. AND YOU CAN GET MISINFORMATION WHICH NOBODY WANTS. IF YOU ARE LIVING IN CALIFORNIA, YOU MAY NOT WANT TO BE GETTING ADVICE FROM SOMEBODY WHO LIVES IN MICHIGAN. WHEN THEY ARE NOT TAKING INTO ACCOUNT YOUR ACTUAL CLIMATE. JEREMY IS ASKING A QUESTION RIGHT NOW, TO OUR GROW TEAM ABOUT HOW THE WATER. ABOUT HOW TO WATER. I’M GOING TO GO AHEAD AND ASSUME THAT HE WAS ABLE TO GET HOLD OF SOMEBODY. BECAUSE WE DO HAVE SOMEBODY WORKING ON IT RIGHT NOW. PERFECT. LOOKS LIKE SOMEONE WAS ABLE TO GET IN CONTACT WITH HIM. >>OKAY. >>ALL RIGHT. ANYWAY,” HE WAS ABLE TO HELP TROUBLESHOOT GOES THEY CAN SEE, WHERE DOES THIS PERSON LIVE? WHEN DID THEY FIRST SUBSCRIBE? WHAT DID THEY START PLANTING? SO WE CAN GIVE YOU ACCURATE INFORMATION BASED ON YOUR LOCATION AS WELL IS YOUR SEASON. WHICH IS VERY IMPORTANT. AND TYPICALLY REGARDING WHEN IT COMES TO SEEKING INFORMATION FROM YOUR LOCAL RETAILERS. OR ONLINE. IN ADDITION TO THAT, JEREMY IS ALSO PRETTY EXCITED BECAUSE HE HAS NEVER DONE THIS BEFORE. HE WANTS TO GO AHEAD AND DOCUMENT HIS JOURNEY.’S GARDEN JOURNEY. WHAT THAT MEANS IS HE IS GOING TO GO AHEAD AND TAKE A PHOTO OF HIS GARDEN. AND WITH THAT PHOTO, NOT ONLY CAN HE DOCUMENT AND UNDERSTAND THE PROGRESS AND WHERE HE CAN SEE THAT LITTLE SECRET IS SOMETHING BIG. AND DOCUMENT THE. BUT ALSO, WE CAN SEE THAT AS WELL. WHICH MEANS THAT WE CAN ACTUALLY TROUBLESHOOT AND GIVE THEM ADVICE BEFORE HE EVEN KNOWS THAT HE NEEDS IT OR WANTS IT. TO HELP GIVE THEM THAT MUCH MORE SUCCESS. PERFECT. >>FINAL THOUGHTS. >>YES. FINAL THOUGHTS. WITH AVALOW YOU CAN GROW ANYTHING ANYWHERE. THIS IS AN OUTER PLANTER THAT YOU CAN PUT IN SMALL SPACES WHETHER YOU ARE IN CHICAGO OR FLORIDA. $50 OFF RIGHT NOW IF YOU GO TO AVALOW.COM AND TYPE IN DISRUPT 2019. THANK YOU. >>[ APPLAUSE ] >>JUDGES. HERE’S A QUESTION. >>THANKS FOR BEING THE FIRST ONE UP. I HAVE A QUESTION ABOUT HER YOU TARGET MARKET IS. IS OBVIOUSLY A BIG MARKET. BUT THE APP BUT THE AVALOW IS $400 IN ONE OF THE STATS WAS ABOUT $500 AVERAGE SPEND. PER YEAR ON GUARDING PRODUCTS. THAT’S ALMOST AS MUCH AS THE AVALOW IN ONE PRODUCT. HOW DO YOU THINK ABOUT YOUR EARLY TARGET MARKET AND HOW DOES THAT FIT INTO THE MASS- MARKET GARDENING? >>ABSOLUTELY. OUR TARGET MARKET, BASED ON OUR PILOT, WE HAVE RIGHT NOW CURRENTLY 400 OF THESE THAT WE HAVE BEEN GETTING FEEDBACK FROM. IT IS WOMEN, AND ALLELES. IT IS WOMEN BETWEEN THE AGES OF 25 AND 35 THAT ARE REALLY FOCUSED ON WELLNESS, WELL- BEING, FOOD, ORGANICS ETC. OUT OF THE FOR THAT? DOES THAT MAKE SENSE? WITH HER MYSELF? WE FOUND THAT THIS IS SOMETHING PEOPLE ARE PRIORITIZING. JUST LIKE SOMEONE IS PAYING FOR A GYM MEMBERSHIP, OR PILATES OR ANYTHING ELSE, AND ADDED EXPENSE. THIS IS SOMETHING THAT PEOPLE ARE YEARNING FOR. SO INSTEAD OF MAYBE PUTTING THOSE EXTRA DOLLARS INTO PRE- ORDERED FOOD BASKETS, OR OTHER SUFFICIENT SERVICES WE ARE FINDING THAT PEOPLE ARE PRIORITIZING AND YEARNING FOR THIS BECAUSE IT FULFILLS MULTIPLE NEEDS. THERE GETTING FOOD, THEY’RE GETTING A LEARNING EXPERIENCE, WHICH PEOPLE ARE YEARNING FOR, IT IS SOMETHING THEY CAN SHARE AND HAVE COMMUNITY WITH. AND IT LAST FOREVER. THAT’S EXAGGERATING. A 10 YEAR WARRANTY. AND SO, WHAT THAT MEANS IS THEY ARE PAYING $400 UP FRONT. BUT THEY ARE GOING TO KEEP THAT FOR 10 YEARS. AND THEY GET TO GROW WITH THAT. SO THEY GET THEIR FIRST PLACE AND IT’S HIS TINY CONDO AND THEY MOVED TO THE NEXT PLACE AND IT’S A LITTLE BIT BIGGER AND THEY CAN TAKE IT WITH THEM. IT JUST KEEPS GOING GOING GOING. >>THANK YOU. >>GREAT PRESENTATION. THE QUESTION I HAVE IS AROUND THIS SELF WATERING SYSTEM. I THINK IT IS FASCINATING. WHEN YOU’RE TRAVELING I THINK IT IS GREAT TO KNOW THAT YOU DON’T HAVE TO WORRY ABOUT WATERING YOUR PLANTS. HOW PROPRIETARY IS THAT? FROM A COMPETITION STANDPOINT IS ANYONE ELSE DEVELOPING THIS? >>GREAT QUESTION. JEREMY’S ENGINEER SO HE SHOULD ANSWER THAT. >>WE SPENT THE LAST THREE YEARS HONING TO R&D THE DIFFERENT MATERIAL SCIENCE, TRYING TO FIND THE RIGHT COMBINATION OF MATERIALS TO ALLOW THE WATER TRANSFER RATE NECESSARY TO GIVE YOU THIS SUCCESS FOR ALL CLIMATE CONDITIONS AS WELL AS TO BE DURABLE AND RELIABLE OVER A LONG PERIOD OF TIME. AND SO THERE ARE SELF WATERING, YOU CAN BUY SELF WATERING PLANTERS, THEY EXIST. YOU’RE GOING TO HAVE TO PLACE IT IN THREE MONTHS. IT IS TYPICAL LIFECYCLE. WE ARE SAYING YOUR FIRST MAINTENANCE IS IN THE FIVE-YEAR TIMEFRAME. AND NO ONE IS DOING THAT. WE ARE MAYBE JUST WEIRDOS BUT WE THINK IT IS IMPORTANT. >>THAT’S GREAT. >>MARKET SEGMENT QUESTION. YOU CARVED OUT A PRETTY LARGE MARKETPLACE. WHAT PERCENTAGE OF THAT MARKET ARE FOLKS THAT ARE STARTING OUT IN NEW ONE-BEDROOM APARTMENTS? OR DON’T HAVE YARDS? OR LIVE IN BUILDINGS? >>REQUESTING. WE ARE ACTUALLY FOCUSING AND EMPHASIZING THE URBAN GARDENER. WE UNDERSTAND THAT THERE IS AN EXISTING MARKET WHERE PEOPLE HAVE THESE LARGE PROPERTIES AND THEY HAVE THE LUXURY OF PUTTING IT ANYWHERE. BUT WE ARE SEEING THIS AS MORE OF AN URBAN PLANTER. IT’S GREATEST SOME OF THE LARGE PROPERTY ONCE IT. TO ADDRESS THAT? >>WILL BE RESTING IS, WITH OURSELVES AS THE GRADUATE PROGRAM, THAT YOU DECORATED YOUR APARTMENT, WITH HOUSEPLANTS, THAT’S GREAT, BUT YOU ARE READY FOR THE NEXT CHALLENGE. AFTER YOU’VE BEEN A LOYAL MEMBER OF MOONSCAPE OR SOMETHING, IT’S THE NEXT PATH UP AS WELL AS IF YOU AS YOU START TO GET MORE SPACE AND EVOLVE IN YOUR CAREER AND YOUR LIFE, YOU HAVE MORE TIME FOR IT. PRIORITY FOR. AS WELL AS SPACE FOR IT. AND THAT TENDS TO BE THE PEOPLE WE ARE TARGETING. IT IS THAT EARLY TO MID CAREER, SPECK OF THE PROFILE. WHAT IS THE NUMBER? WHAT PERCENTAGE OF THAT MARKET SIZE THAT YOU LAID OUT IS THAT? >>FROM AGE DEMOGRAPHIC, IT’S ABOUT 30 MILLION PEOPLE RIGHT NOW. IN THE U.S. KIND OF FIT THAT DEMOGRAPHIC. AND THAT, INCLUSIVE PEOPLE ACTIVELY SPENDING $500 PER YEAR TO GARDEN. NOT INCLUDING THE PEOPLE WHO ARE YET TO BE GARDENERS. BECAUSE THEY ARE NOT DOING IT BECAUSE IT IS TOO HARD. SO WE SEE THAT AS OUR MINIMUM CUT IS THE 30 MILLION. AND WE SEE, THERE IS AN UNDEFINED ABOUT THAT. >>WE ARE SEEING URBAN NO-COST URBAN BEING LARGER CITIES WITH SMALLER PROPERTIES. AS BEING ABOUT TWO THIRDS OF OUR MARKET. THAT IS WHAT WE ARE ANTICIPATING FOR THAT. >>WE HAVE SIX SECONDS. WHAT IS YOUR COST? WAS YOUR COGS? >>IT IS JUST OVER AROUND $180. ON THE PRODUCT. THERE IS ADDITIONAL SHIPPING AND THINGS TO COME INTO IT WHICH GIVES A SENSE EXUBERANT FINAL MARGIN. 60% FINAL MARGIN. MANUFACTURE IN HOUSE. IT IS A RIGHT FIT FOR US AT THIS POINT. THAT IS SOMETHING WE WILL CHANGE OUR MARGIN STRUCTURE. >>THANK YOU FOR EXPECT TO GIVE IT UP FOR AVALOW. >>>>THAT MEANS IT’S TIME TO BRING OUT OUR NEXT STARTUP. PRESENTING FOR CRANIUM ARE PETER CRESPO AND FELIPE A [ INDISCERNIBLE ]. >>SO, IMAGINE A SITUATION, THE UNIVERSAL DONOR IS REQUIRED. BECAUSE THAT IS IMPORTANT TO HAVE THE RIGHT BLOOD TO BASE AN EMERGENCY SITUATION. EVEN THOUGH EMERGENCY RESPONDERS HAVE ACCESS TO ALL BLOOD TYPES, THEY NEED RAPID CONFIRMATION TEST. THIS IS A WORLDWIDE CONCERN. LESS THAN 3% OF PEOPLE ARE, THE SCARCITY CREATES ONE SECOND IS WHAT ONLY LAST FOR 42 DAYS, THAT IS A CONSTANT NEED FOR THE RIGHT BLOOD TYPES. BILLIONS OF DOLLARS ARE BEING SPENT RIGHT NOW IN ORDER TO FACE EMERGENCY SITUATIONS. THAT IS WHY WE HAVE CREATED A PORTABLE MEDICAL DEVICE THAT DETECTS WHAT TYPE IN THREE MINUTES. IT IS FASTER, MORE AFFORDABLE, AND WITH THIS, MORE IMPORTANTLY, WE CAN EXECUTE THE TEST ANYWHERE FROM AMBULANCES, EMERGENCY HELICOPTERS, SMALL CLINICS, REMOTE LOCATIONS. WITH THIS ANY MEDICAL RESPONDER CAN DETECT, WITHOUT HAVING TO WAIT OR TO GIVE A NEGATIVE. THE DEVICE WORKS IN THE SAME WAY MEDICAL STAFF USED TO WORK NOWADAYS, AND THE TRADITIONAL BULKY DEVICES THAT EXIST IN HOSPITALS AND LABS. ALL WE HAVE TO DO IS PUT SOME DROPS IN THE CARTRIDGE, AND THEN, THE DEVICE WILL CURATE THE RIGHT SET OF MOVEMENTS, ALMOST LIKE CENTER FUSION, IN ORDER TO DETECT THE RIGHT RESULT FOR THE TEST. LET ME SHOW YOU HOW THAT WORKS. LET’S GO TO THE DEMO. IMAGINE THERE IS AN ACCIDENT, PEOPLE NEED BLOOD TRANSFUSIONS. ALL THE EMERGENCY RESPONDER HAS TO DO IS PUT SOME DROPS OF BLOOD IN THE CARTRIDGE, AND INSERTED INTO THE DEVICE. AFTER THAT, THE DEVICE WILL CREATE THE RIGHT SET OF MOVEMENTS IN ORDER TO ALLOW CLOTTING. AFTER THAT THE MACHINE LEARNING ALGORITHMS WILL DETECT THE RIGHT RESULTS AND THE RESULT APPEARS ON THE MAIN SCREEN. SO THE TRANSMISSION CAN BE DONE NOW ON THE VEHICLE IF THEY ALREADY HAD BLOOD BANKS OR THE HOSPITAL, THEY CAN BE ALERTED FOR THEM TO BE READY WITH THE RIGHT BLOOD TYPE. AS SOON AS THE PATIENT ARISE. SO THE DEVICE CAN DO THE TEST, BACK TO THE DECK. WE REDESIGNED THE WAY TESTS ARE BEING DONE, WITH BIBLICALLY DEVICES. IN ORDER TO EXECUTE THE TESTS, ANYWHERE, WE USE THIS CARTRIDGE, IN ORDER TO SPLIT THE BLOOD EVENLY INTO ALL THE CONTAINERS. WE HAVE A PATENT FOR THE PROCESS AND WE CREATED SECRET STRATEGY FOR THE ALGORITHMS. 99.77 WHICH IS MORE THAN ENOUGH FOR REQUIREMENTS. FOR FDA. WE ARE COMPETITORS SO WE ARE TALKING ABOUT THE BIG MULTINATIONALS. BUT THEY CAN ONLY DO THIS IN LABORATORIES AND HOSPITALS. WE ARE THE ONLY ONE THAT CAN DO THE SET POINT OF CARE. WE ARE FASTER, AND MORE AFFORDABLE. THE MARKET, IS HIGHER THAN $4 BILLION.. THIS IS CALCULATED WITH THE NUMBER OF HOSPITALS AND EMERGENCY VEHICLES WORLDWIDE. TESTS, IS REGULATORY WHEN. THE FIRST MARKET FOR US OUR UNITED STATES, AND EUROPEAN UNION. WE VALIDATED THE DEVICE IN MAJOR INTERNATIONAL HOSPITALS. WITH AN ACCURACY OF ACCURACY OF 99.77% FDA ONLY REQUIRES 97% FOR THESE KINDS OF TEST.’S WE ARE IN THE PROCESS OF SECURING FDA AND SEYMOUR, WE ALREADY SECURED THAT GOVERNMENT INSTITUTES AND HOSPITAL GROUPS. BUSINESS MODEL IS, INITIAL REVENUE COMES FROM HARDWARE, CARTRIDGES, AND SOFTWARE AS A SERVICE ALGORITHMS. THIS IS A MARKET THAT IS OWNED, WE ALREADY HAVE LETTERS OF INTENT FOR MOST OF THEM. MEDICAL, SCIENTIFIC AND BUSINESS WISE. WE ARE BIOCHEMISTRY, WE HAVE PEWTER AND MACHINE LEARNING EXPERTS. WE HAVE PEOPLE IN BUSINESS MANAGEMENT. WE ALSO HAVE EXCELLENT ADVISORS, RESEARCHERS, TO THE CEO OF ONE OF LARGEST HOSPITALS IN LIBERIA. IF YOU’RE IN THE BLOOD RELATED ROLE, GO TO OUR WEBSITE, ASKED FOR A PILOT, HELP US TO REDUCE COST OF THE HEALTHCARE INDUSTRY. AND SAVING LIVES. THANK YOU. >>, BUT >>JUDGES. >>CAN YOU TELL US ABOUT YOUR DISTRIBUTION STRATEGY? MORE IMPORTANTLY HOW THE BUYER THINKS, THEY ARE READY HAVE AN INFRASTRUCTURE IN PLACE. YOU’RE GOING TO COME IN AND SAY I’M FASTER, AND CHEAPER, JUST TAKE ME OVER OR IS IT SOMEWHERE, IT DOES NOT HAVE INTERSECTION AT ALL? AND THEY START FROM SCRATCH? >>IT’S JUST THE WAY YOU GIVE BLOOD. HOSPITAL SPEND AROUND 1% OF THEIR BUDGETS AND BLOOD. IMAGINE THE SAVINGS THEY COULD HAVE IF THEY COULD GIVE THE RIGHT ONE, INSTEAD OF A NEGATIVE EVERY TIME. SO DISTRIBUTORS, THEIR BIG PLAYERS, THEY CONTROL THE BLOOD INDUSTRY, THE BLOOD TYPING DEVICES ETC. WE TALKED WITH THEM, WE VALIDATED THE BUSINESS MODEL WITH THEM, WE UNDERSTOOD WHAT KIND OF MARGINS THEY WANTED FROM US. AND WITH THAT WE GOT, LETTERS OF INTENT. >>IS THAT WHAT YOU MEAN BY TRACTION? LETTERS OF INTENT? AS OPPOSED TO FORMAL WORKING RELATIONSHIPS WITH THEM? >>WE HAVE, MAJOR INTERNATIONAL HOSPITALS THAT SHOW THE ACCURACY. WE CLINICAL TRIALS WITH THEM. HOWEVER WE CAN’T HAVE ORDERS UNTIL WE HAVE THE FINAL DEVICE READY. WHAT WE ARE DOING RIGHT NOW IS DOING FUNDRAISING TO HAVE THE FINAL DEVICE READY HANDLE THE REGULATORY AND DELIVERING DEVICES. >>A QUICK FOLLOW-UP IF YOU DON’T MIND? YOU MENTIONED THAT YOU’RE GOING TO THE FDA APPROVAL PROCESS. WHERE ARE YOU IN THAT PROCESS? >>WE DON’T HAVE TO BE FROM SCRATCH, WE ARE FIVE 10K, BECAUSE IT IS SOMETHING THAT WE DESIGN FROM THE TRADITIONAL WAY. IT TAKES AROUND SIX MONTHS. WE ESTIMATE THE PAPERWORK NECESSARY FOR THAT, NOT ONLY FOR FDA BUT FOR CE, TO START SELLING ALSO. IN EUROPE. >>JUST AS A SIDE NOTE TO MAKE SURE, IT IS CLEAR, WE HAVE MORE THAN ENOUGH ACCURACY TO MAKE THE WHOLE PROCESS. IT JUST NEEDS TO BE THE FINISHED PRODUCT WHICH IS BASICALLY A MANUFACTURED DEVICES, SO THAT IT IS READY TO BE FDA APPROVED. TECHNICALLY, AND SCIENTIFICALLY, THE DEVICE IS MORE THAN >>AS YOU THINK ABOUT THE FUTURE, WHAT ARE OTHER BUSINESSES, MEDICAL DEVICES IN THIS CATEGORY, RELATED CATEGORIES, WHAT ARE THE OUTCOMES? WOULD IT LOOK LIKE? >>WE CREATED THE DEVICE AS A PLATFORM. BASICALLY WE CAN DETECT ALSO, AND SO ON. BASICALLY, YOU PUT A DIFFERENT CARTRIDGE FOR EVERY TEST. WHAT WE ARE USING IS STANDARD FREE AGENCY, THAT THEY ALREADY USE BY THE BIG PHARMACEUTICALS. AND WE ARE RINGING THAT FOR THE POINT-OF-CARE AREA. THERE IS A LOT OF ROADMAP FOR IT, VETERINARY, WATER ANALYSIS, ETC. WE BASICALLY CAN DETECT EVERY VISIBLE REACTION. YOU CAN SEE. >>CAN YOU TALK ABOUT PRICE POINT AND HOW IT RELATES TO YOUR COMPETITORS? >>BASICALLY, THE MINIMAL COST OF TRADITIONAL DEVICES IS HIGHER THAN $250,000. WE CAN SELL THE DEVICE AND GIVE FINANCIAL INCENTIVES DEPENDING ON THE ANNUAL COMMITMENT FOR THE NUMBER OF COUNTRIES. $6000. THE OTHER IS THE ALGORITHM, EVERY TIME WE HAVE A NEW ALGORITHM, THE DEVICE ITSELF UPDATE OVER THE YEAR. AND THE CLIENT WILL PAY THAT AS WELL. >>COULD YOU TALK A LITTLE BIT MORE ABOUT HOW YOUR TECHNOLOGY IS DIFFERENT FROM THE EXISTING MODELS ON THE MARKET? YOU MENTIONED COMPUTER VISION, BUT IN A WORLD OF, I WILL AS THE CONTROVERSIAL QUESTION ON EVERY IS WHY, IN A WORLD OF, TELL US HOW IT IS REALLY DIFFERENT. >>FIRST OF ALL WE CAN DO IT AT POINT-OF-CARE. NO ONE CAN RIGHT NOW FOR BLOOD TYPING. >>FROM THE SCIENCE PERSPECTIVE, YOU NEED TO MAKE SURE THAT YOU CAN DETECT VISIBLE REACTIONS ON THE MOVE. THAT IS WHY WE FOCUS ON PORTABILITY. AND THAT HAS ITS OWN CHALLENGES. BASICALLY, WE SAW THAT WITH, THE DESIGN OF OUR OWN CARTRIDGES. TO MAKE SURE THAT THE REACTION THAT MINIMUM TIME POSSIBLE. WE OPTIMIZE THE REACTION. AND THEN WE ALSO DESIGN THE CARTRIDGE TO BE ABLE TO BE EASIER FOR THEM TO BE EXTRACT THE COMPUTER FUTURES THAT WE REQUIRE FROM EACH REACTION. IT IS A COMPLETE APPROACH FROM THE MACHINE. TO MAKE SURE THAT THAT WE ARE ABLE TO VERY EASILY OR AS EASY AS POSSIBLE DETECT VERY COMPLEX AND SOMETIMES VERY SUBTLE CHEMICAL REACTIONS. WHICH ARE RIGHT NOW VERY HARD TO DO EVEN ON BULKY MACHINES. >>IT STANDS FOR CHEMICAL REACTION AND IMAGE ANALYSIS. >>FINAL QUESTION? >>WHAT YOU INTEND TO ACCOMPLISH WITH YOUR FUNDING ROUND? >>BASICALLY, WE WANT TO GO, WE HAVE PROTOTYPES READY. CLINICAL TRIALS DONE. LETTERS OF INTENT FOR THIS. GETTING THE FINAL DEVICE READY. HANDLE THE REGULATORY INSERT SELLING. AFTER THAT, WE WILL GO TO THE ROADMAP FOR DIFFERENT DISEASES. RETAIL DETECT MAGNESIUM AND CALCIUM. IN ORDER FOR THEM TO SELL THE RIGHT SUPPLEMENTS. FOR PERSONS. IS SOMETHING WE WANT TO DO. >>LET’S HAVE ONE MORE ROUND OF APPLAUSE. >>[ APPLAUSE ] >>OUR NEXT STARTUP HIS LIFE COUPLE, ONE OUT. >>I WAS NOT SLEEPING IN MY BEDROOM WITH MY WIFE FOR MONTHS. WE WERE ACTUALLY GOOGLING DIVORCE ATTORNEYS. MY WIFE AND ME HAD BEEN MARRIED FOR 19 YEARS, WE HAVE TWO CHILDREN. WEED WITH THE FIVE MARRIAGE AND FAMILY THERAPIST AND IT WAS NOT WORKING. MY MARRIAGE WAS FALLING APART AND DIVORCE WAS COMING. WE NEEDED TO COME UP WITH SOMETHING THAT WORKED. IN MY ENTREPRENEUR LIFESTYLE, THE WORK WITH MY WIFE AND WHAT HER DREAMS AND AMBITIONS WERE. WE NEEDED SOMETHING AND WE NEEDED SOMETHING FAST AND A MIRACLE HAPPENED. A MIRACLE THAT BROUGHT US TOGETHER, AND WE CREATED LIFECOUPLE. IT IS A PLATFORM THAT ALLOWS COUPLES TO ADDRESS RELATIONSHIP CHALLENGES ANYWAY THAT IS SUITABLE FOR THEIR EVERYDAY LIVES. WE HAVE JACK AND JILL, AND THEY HAVE JUST TAKEN A METRIC DRIVEN ON BOARDING QUESTIONNAIRE. AND THEIR PROPRIETARY ALGORITHMS, FOUR KEY AREAS OF THE RELATIONSHIPS, HAVE NOW BEEN FILLED. COMMUNICATION. TRUST. INTIMACY. AND CONFLICT. THE PLATFORM UNDERSTANDS THESE VITAL AREAS. AND IT OFFERS CHECK-IN’S SEE HOW THE COUPLE IS DOING. AND THROUGH ALERTS, AND AI AND MACHINE LEARNING, THE COUPLE IS NOW OFFERED WAYS TO BRING THE GAP BETWEEN WHERE THEY ARE AT IN THEIR SATISFACTION LEVEL, TO BE ONE. IT TAKES ONE OF THE MOST IMPORTANT THINGS WE TAKE FOR GRANTED AND THAT’S OUR RELATIONSHIP, MAKES US THINK ABOUT IT. BECAUSE WITHOUT A GOOD RELATIONSHIP, IT’S A FIT BID FOR YOUR HEART. THIS IS THE VITALS. THE RED AREAS THE GROWTH AREA. AND THE PLATFORM IDENTIFIED THE JACK NEEDS TO DO SOMETHING. JACK IS GOING TO DO SOMETHING WE CALL ICEBREAKER. ICEBREAKER SOMETHING WHERE YOU WANT TO COMMUNICATE TO ONE PARTNER, SOMETIMES IF YOU SAY THE WRONG THING, IT IS NOT GOING TO GO WELL. ON THE SITUATION, JACK HAS JUST GOTTEN THE MESSAGE BECAUSE HIS PARTNER WANTS HIS MOTHER-IN-LAW TO COME VISIT. NOT FOR ONE DAY, SHE WANTS TO COME FOR A MONTH. >>[ LAUGHTER ] >>[ LAUGHTER ] >>SO INSTEAD OF JACK ACTING LIKE JACK DOES, JACK IS NOW ABLE TO ACT IN A WAY TO BEHAVE SO THAT HIM AND JILL ARE NOT WALKING AWAY IN A CONFLICT. THE PLATFORMS OF THE MESSAGE, AND THE MESSAGE GOES TO JACK, AND ASKED JACK, MEET WITH JILL, AND SOLVE THIS CHALLENGE. AND LET’S KEEP TRACK OF HOW THINGS HAVE GONE. THE PLATFORM ALSO HAS OTHER AREAS. OTHER AREAS SUCH AS RELATIONSHIP CHALLENGES. OTHER AREAS SUCH AS DIGITAL GIFTS WITH THE FIVE LOVE LANGUAGES. OTHER AREAS SUCH AS MAKE A RELATIONSHIP HAVE THAT NEEDED DATE, OR, GO ON AND GET THAT VIDEO, BECAUSE AI HAS KICKED IN AND AI KNOWS WHAT YOU NEED. TO GET THROUGH. TO KEEP THE RELATIONSHIP GOING. THIS PLATFORM WAS BUILT TO KEEP A RELATIONSHIP HEALTHY. IT WAS NOT ONLY BUILT TO KEEP THEM HEALTHY, BUT IT WAS BUILT BECAUSE 11 TO 80% OF PEOPLE THAT GO TO THERAPY FIND IT TO BE NOT EFFECTIVE. THERE IS NO DIGITAL SOLUTION. ANOTHER IS. WHEN YOU WALK IN TODAY ONE OF THE THERAPIST OFFICE, THAT THERAPIST IS GOING TO TAKE AN iPAD OUT AND THEY ARE GOING TO FIND EXACTLY WHERE YOU’RE AT. THEY’RE GOING TO KNOW EXACTLY WHERE YOU ARE COMMUNICATION, CONFLICT, TRUST, INTIMACY LEVELS ARE. AND AT THE END OF THAT SESSION, THEY’RE GOING TO DROP DOWN AND GIVE YOU AN ACTIVITY. AND THAT ACTIVITY IS GOING TO BE SOMETHING YOU WILL DO IN BETWEEN SESSIONS. ME, I WOULD LOSE THAT PIECE OF PAPER. BUT NOW, YOU CAN’T LOSE IT. BECAUSE IT IS IN YOUR PHONE. A PHONE THAT YOU SPEND FOUR AND HALF HOURS A DAY ON, AND YOU COULD SPEND 15 MINUTES AND DO SOMETHING PRODUCTIVE. WHEN YOU COME BACK INTO THAT THERAPIST OFFICE, BUT THERE IS GOING TO BE ABLE TO SEE EXACTLY WHAT YOU’VE DONE, AND YOU WERE GOING TO HAVE A GAUGE OF EXACTLY WHERE YOUR RELATIONSHIP IS GOING, OR NOT GOING. THIS IS A TREATMENT PLAN. LET’S GO AND TALK ABOUT EXACTLY HOW LIFECOUPLE CAME ABOUT. A COMPETITION, DOCK SPACE, RELISH HOW GREAT COMPANIES BUT NO ONE TRACKS AND NO ONE MONITORS THE HEALTH OF ONE’S RELATIONSHIP. THERE IS ALSO OTHER AREAS, FOR EXAMPLE, OUR GO TO MARKET STRATEGY. OUR GO TO MARKET, EXCUSE ME, SORRY. HOW BIG IS THE MARKET? 9.6 BILLION EXCUSE ME 9.6 BILLION AND 3.8 MILLION, THIS IS A MASSIVE INDUSTRY. AND INDUSTRY THAT THE DATING AND SHE STARTED BUT WHAT KEEPS US TOGETHER. THIS PLATFORM WILL GIVE US TOGETHER. THE COMPANY STARTED MARKETING IN JULY. WE SPENT $5500, WE HAVE 5000 USERS AND IS AN ASTONISHING A DOLLAR 25. FIVE MINUTES AND 42 SECONDS PEOPLE ARE SPENDING ON THIS APP, AND WE HAVE NOT EVEN BEEN CLOSE TO ENGAGEMENT IN ANY FORM OF STARTING TO WORK ON HER MESSAGING. OUR GO TO MARKET STRATEGY, OF COURSE WE HAVE THE TRADITIONAL, BUT IN THE MIDDLE WE HAVE BROKEN GROUND WITH SOME OF THE BIGGEST ORGANIZATIONS THAT A BLOCK TECHNOLOGY FROM DAY ONE AND WE HAVE BUILT A PARTNERSHIP BECAUSE WE COMPLEMENT THERAPY. WE DO NOT SAY, THAT THERAPY IS GOING TO BE REPLACED BY TECHNOLOGY. AND WHEN IT COMES TO THE EMPLOYMENT ASSISTANT PROGRAM, $13 BILLION IS LOST IN UNPRODUCTIVE AND OPPORTUNITY BECAUSE OF PEOPLE DIVORCING OR IN AN UNHAPPY MARRIAGE. LIFE COUPLE HAS A STAR-STUDDED TEAM, THE TEAM OF ADVISORS, WE HAVE MATT FROM, WITH THE BOOK, AND TOOK IT TO A BILLION-DOLLAR VALUATION. IN SUMMARY, LAST COUPLE IS PROPELLING THE FUTURE OF RELATIONSHIP HEALTH, AND I ASK EVERYBODY IN THIS ROOM TO DOWNLOAD LIFECOUPLE TODAY. AND BE PART OF THE MOVEMENT. THANK YOU. >>JUDGES, >>AM HAPPY TO START THEIR CONGRATULATIONS. I THINK THAT THERE BE FOR COUPLES IS IS INTERESTING SPACE. THE QUESTION I HAVE FOR YOU, BASED ON WHAT WE SAW, IS, ARE YOU LOOKING TO REPLACE COMMUNICATION VIRAL WITH COUPLES? OR IS THE IDEA THAT ON A WEEKLY OR DAILY BASIS EACH OF YOU IS WILLING TO SPEND FIVE MINUTES ON YOUR PHONE ADDRESSING WHATEVER ISSUES THAT YOU HAVE YOUR TRYING TO UNDERSTAND WAS BACK HOW YOU ARE IMPROVING THE RELATIONSHIP IS A MORE DIGITAL? ARE ALSO IN REAL TIME. >>IT BRINGS YOU TOGETHER AND ASKS YOU TO MEET. WE CANNOT TAKE OUR PHONES AWAY. WE CAN DO, WE CAN ASK THAT WE SPENT FIVE OR 10 OR 15 MINUTES WHETHER IT IS IN THE BEDROOM, OR IN THE MORNING, AND THE PLATFORM REMIND YOU AND ASKED YOU TO TAKE THOSE LITTLE BABY STEPS. WITH THESE BABY STEPS, WE CAN GROW. WE MIGHT ONLY START WITH FIVE MINUTES, WE COULD GO TO 10 MINUTES. IT’S ALL ABOUT SMALL WINS, SMALL WINS MAKE A RELATIONSHIP START TO FLOURISH. AND SO LIFE COUPLE, IT ENABLES YOU TO HAVE SMALL WINS, AND MAYBE PICTURE OUT OF THE HABIT AND GET YOU TO PUT THE PHONE DOWN. IS ACTUALLY A COMPLIMENT BUT IT DOES NOT REPLACE THE MOBILE PHONE. >>YOU PUT UP SOME METRICS, 5000 USERS. REALLY IMPRESSIVE SESSION LENGTH, WHAT ARE THE OTHER METRICS YOU ARE TRACKING, DAILY ACTIVE USERS, WHAT ARE YOU SEEING THERE, AND HOW ARE YOU THINKING ABOUT RETENTION, THIRTY-DAY RETENTION AND ENGAGING PEOPLE SO THEY WANT TO GO BACK TO THIS PRODUCT EVERY DAY EVERY? >>EXCEED THE. WITH THE RELATIONSHIP PULSE CHECK IN, IT IS AUTOMATIC, EVERYBODY WANTS TO KNOW WHERE THEY ARE AT. DAILY, EVEN IF YOU ARE NOT DOING IT IN THE APP, YOU WANT TO KNOW WHERE YOUR PARTNER IS AT. WE ARE ALMOST TAKING YOUR TEMPERATURE. WE FOUND THAT WE STARTED TO MESSAGE PEOPLE, USING PUSH OR TEXT, COUPLES WERE GOING ON BECAUSE THEY WERE DYING TO FIND OUT EXACTLY WHERE THEY WERE AT A BROTHER PARTNER WAS AT. AND WITH THIS WE STARTED TO USE SOME OF THE TECHNOLOGY TO BE ABLE TO OFFER DYNAMIC CONTENT. IF SOMEONE IS HAVING AN INTIMACY ISSUE, WE HAVE THE TOP INTIMACY EXPERTS IN THE WORLD. THE RETENTION PLAY IS TO GIVE DYNAMIC CONTENT, TOP-NOTCH CONTENT, WE PLAN ON FOLLOWING HIS BOOK. SUSPECT YOU HAVE THOSE METRICS? DAILY ACTIVE USERS? SUSPECT THE DAILY ACTIVE USERS RIGHT NOW ANYWHERE FROM 144 TO SOMETIMES 180. IT GOES UP AND DOWN. WE TESTED OTHER COUNTRIES AND IN OTHER COUNTRIES THERE IS SOME CULTURAL, I WILL CALL IT BIAS, OR PEOPLE JUST MAYBE DO NOT WANT TO GO IN, BECAUSE THEY CANNOT SEEM TO GET THEIR PARTNER. AND SO WHAT WE HAVE DONE IS WE HAVE TRANSFERRED DOWN TO NORTH AMERICA AND WE HAVE STARTED TO FOCUS IN ON CANADA, AND THE U.S. BECAUSE WE THINK WE CAN GET A SOLID ANSWER. THAT IS WHAT WE ARE LOOKING AT. AND WE ONLY LAUNCHED IN JULY. WITH PRODUCING WHAT WE ARE PRODUCING. >>COULD YOU DOUBLE-CLICK ON YOUR TEAM? IT IS AI DRIVEN.’S ARE AI ENGINEERS ON THE TEAM? AND IS THERE A TRAINED THERAPIST ON THE TEAM THAT IS TRAINING THE AI? >>HONOR ADVISORY BOARD, WE HAVE, THE TEXAS ASSOCIATION OF MARRIAGE AND FAMILY THERAPY, WE HAVE TWO BOARD MEMBERS OF THE AMERICAN ASSOCIATION OF FAMILY THERAPY, WITH SOME OF THE YOUNGEST MOST FORWARD THINKING THERAPIST THAT WANT TO PUT THIS PLATFORM ON HIS HEAD. THEY REALIZE THAT IT IS BROKEN. THEY SEE WHAT’S HAPPENING. AND THEY WANT TO BASICALLY BRING A TECH PLAY IN THE PLACE. AS FAR AS OF THE DAY-TO-DAY STUFF, WE ARE OUT, I’M OUT OF COFFEE SHOPS, AND PLACES ASKING PEOPLE, SOUNDS WERE COMPANY ASKING THEM, WHAT YOU NEED, WHAT CAN WE DO. AND THAT’S HOW WE ARE BUILDING THIS PRODUCT THAT WE ARE BUILDING IT BY PEOPLE, NOT BY THEORIES. BECAUSE THEORIES EVEN THOUGH THEY SOUND GREAT, AT THE END OF THE DAY, WITH EVERY 36 SECONDS AND WORST TAKING PLACE, I THINK THE PEOPLE CAN HAVE AN ANSWER AT TIMES, AND THAT IS THE APPROACH WE ARE TAKING. WE DO HAVE EXPERTS, WE HAVE SOMEBODY THAT IS ACTUALLY FROM THE UNIVERSITY OF MICHIGAN, HE IS A TOP PROFESSOR THERE, AND WE PLAN ON BRINGING IN THE UNIVERSITY OF MICHIGAN IS ARE BRINGING IN SOME OF THE DATA AND GROWING FROM THERE. SEC WHAT YOU EXPECT YOUR REVENUE MODEL TO BE AS YOU GROW? >>IT SAYS APPROACH AND BASE. WE WILL START OFF MONTHLY, AND YEARLY, RIGHT NOW, WE HAVE AN IDEA WHERE WE WANT TO GO. WE ARE LOOKING AT ANYWHERE FROM NINE DOLLARS PER MONTH TO $12 PER MONTH AND THE BEAUTIFUL THING ABOUT IT IS AS A PARTNER PACE, PARTNER B DOES NOT PAY. A PARTNER A COMES ON BOARD, AND PARTNER B DOES NOT WANT TO COME FROM THE HEART WE WILL OFFER CONTENT TO GIVE YOU THE STRENGTH FROM ANYTHING WE CAN. TO FIND WHAT YOU NEED TO GET THROUGH THIS HARD TIME. >>SOUNDS LIKE A LOT OF THE INSIDE AND BIG DIFFERENCE COMES FROM INTAKE QUESTIONNAIRE. >>ON BOARDING HOW MUCH IS IT PREP PAIR) TERRY TO YOU? >>WE HAVE PATENT PENDING STATUS. IT’S 100 PER TENT PROPRIETARY. WE HAVE NOT GOTTEN THE PATENT GRANTED. AS FAR AS THE WHOLE PROPRIETARY QUESTIONS. WE HAVE THE ABILITY ON THE BACK AND TO CHANGE THOSE QUESTIONS AT ANY TIME WITHOUT HAVING ANY KIND OF UPDATES. WE ARE FINDING DIFFERENT NUANCES OF THE LGBT COUPLE OR A COUPLE IN A CERTAIN AREA THAT MIGHT HAVE A DIFFERENT INCOME LEVEL. WE ARE LEARNING AND WE’RE LEARNING AND WE ARE LEARNING. WHAT WE DID WE BUILT AN ENGINE THAT CAN SOLVE THE PROBLEM THAT THE THERAPIST HAD TO TAKE AND GO OUT AND GET GRANTS AND THEN PUT INTO PLACE AND NOT TO SAY THAT THEY DON’T WORK WHAT I’M SAYING IS THAT TECHNOLOGY HAS THE ANSWER. BUT YET IT HAS THE ANSWER WITHOUT PULLING US APART. >>GIVE IT UP FOR LIFE COUPLE. >>THANKS. >>ALL RIGHT LET’S BRING OUT OUR NEXT STARTUP. STRATEGY RL RIGHT AND KATE PASSED OUT. >>GOOD AFTERNOON EVERYONE MY NAME IS ARI ALL RIGHT I’M THE CURRENT SENIOR STUDYING COMPUTER SCIENCE AT HARVARD UNIVERSITY AND A FORMER CRYPTO CURRENCY AT GOLDMAN SACHS. EARLIER THIS YEAR DONALD TRUMP TWEETED ABOUT THE NEGOTIATIONS WITH THE TRADE WAR FOLLOWING THROUGH. AS A RESULT, ONE MAN WITH ONE SINGLE TWEET MOVED ON THE S&P 500 BY 4% IN JUST TWO DAYS. THAT IS APPROXIMATELY $90 BILLION IN LOSSES ACROSS OUR NATION. HOWEVER, JPMORGAN WAS NOT AS IMPACTED AS THEY HAVE AN AUTOMATED INDEX TO TRACK TRUMP AND HIS TWEETS. HOWEVER, THIS IS IN THE ONLY CASE. EARLIER THIS YEAR, BOEING HAD A PLANE CRASH WHICH LED THEIR STOCKS TO DROP BY 5%. TRADING TO $10 BILLION IN LOSSES IN 24 HOURS. HOWEVER, VERY SIMPLE ALGORITHMIC TRAINING TOOLS OUT THERE THAT CAN WORK ON THESE SCENARIOS. 7% OF OUR WORLD CANNED CODE. AN 85% OF THE STOCK MARKET IS LED BY MACHINES. WHERE DOES THAT LEAD EVERYONE ELSE? FROM YOUR EVERY DAY TD AMERICAN AID TRADE TRAITOR TO YOUR PRIVATE WEALTH MANAGER AND A $10 BILLION FUND THAT HAS NEVER TOUCHED A COMPUTER. THESE PEOPLE ARE BEING LEFT BEHIND WHICH IS WHY WE CREATED STRATEGY X. STRATEGY ACTS. IS THE ELMER BRICK TRADING. WE DO THIS BY CREATING TOOLS BY EVERYDAY INVESTORS WHO CANNOT CODE AUTOMATE AND TEST TO AUTOMATED PORTFOLIO. I CAN SHOW YOU HOW IT WORKS. SO STRATEGY X IS BROKERED AGNOSTIC THAT MEANS YOU CAN BRING ON YOUR OWN BROKER. WE ARE GOING TO BE USING ROBIN HOOD. WE ARE GOING TO CREATE A NEW STRATEGY USING A VIVIAN. THIS WORKS IN THE SOLAR PANEL SPACE. WE ARE GOING TO GO FOR 10 SHARES. AND FROM THERE, NOTICE HOW INTERFACE ALLOWS YOU TO BUY WHEN AND SELL WHEN GIVING YOU INDICATION THAT YOU CAN CREATE RULES TO PROTECT AND ALSO TAKE ADVANTAGE OF OPPORTUNITIES. YOU CAN USE THESE RULES AND FOR X, TWITTER, PRICE CHANGE, ETC.. FROM THERE, WE CAN CREATE OUR BY SOLUTION. IN THIS CASE, WE DECIDED THAT WE WANTED TO BUY WHENEVER THERE ARE THINGS SURROUNDING GREEN TECH. THE 2020 ELECTION AS WELL AS MATERIALS FOR CLIMATE CHANGE IN THE SPACE OF KEYWORDS. THESE ARE A FEW OF THEM. YOU CAN ALSO CHOOSE A CELL CONDITION AND FROM THERE, WE DECIDED TODAY THAT WE WANTED TO ACTUALLY SELL UNDER CONDITIONS OF GEOPOLITICAL INSTABILITY. SO WHEN TRUMP OR TRADE WAR OR MATERIALS SURROUNDING IMPEACHMENT ARE PRESENTED, IT’S AWESOME. GREAT. WHY DON’T WE HAVE A LOOK AT WHAT THE BACK TEST GIVES US. STRATEGY X IS UNLIKE ANY TOOL IN THE SPACE. WE HAVE AN INTERNAL PROPRIETARY SCRIPTING LANGUAGE THAT ALLOWS US TO NOT ONLY BE ABLE TO TRADE ON A SINGULAR DYNAMICS OR MAYBE FORMER FALSE MATERIALS, OUR SCRIPTING LANGUAGE IS COMPLETE WHICH MEANS WE CAN CREATE STRATEGY FOR ANYTHING IN THE WORLD. OUR BACK TEST GAVE US APPROXIMATELY 9% GAMES. WITH THE PRICE OF THE STOCK BEING ACTUALLY DROPPING BY 2.9% MEANING THAT NOT ONLY UNDER DIFFERENT CONDITIONS AT THE STOCK PERFORM, OUR STRATEGY ALSO GET A GAME. STRATEGY X ALSO HAS TOOLS TO BE ABLE TO PROTECT YOU SUCH AS MANUAL TRIGGERS AS WELL AS AUTOMATED MATERIALS. GREAT. GIVE IT A NAME, DATE ETC. ALL RIGHT LET’S MOVE BACK TO OUR SLIDES. SO, WE HAVE A SUBSCRIPTION MODEL RANGING FROM THREE TODAY TRAITOR AND AN ENTERPRISE FOR OTHER TYPES OF CLIENTS. OUR MARKET IS ESSENTIALLY IS AROUND THE $52 BILLION THAT TRADE BETWEEN THE HUNDRED MILLION EVERY DAY INVESTORS IN THE TOOL SPACE. AND BECAUSE WE ARE A SOFTWARE AND WE ARE BROKER AGNOSTIC WE HAVE OF THE ABILITY TO REACH GLOBALLY. WE HAVE APPROXIMATELY 500 MILLION. WHAT DIFFERENTIATES US FROM OUR COMPETITORS? IT’S NOT ONLY EASY TO USE BUT WE OFFER THE ABILITY TO BACK TEST AND GIVE YOU FORMAL FULL AUTONOMY AND ARE BROKER AGNOSTIC. PEOPLE OF TAKEN NOTICE AS WE GONE OVER 10,000 PEOPLE ON HER WAITLIST, HAVE SPENT ZERO DOLLARS ON MARKETING AND OUR CURRENT BETA HAS NET SCORE OF 7.5. OUR TEAM IS MADE UP OF A TEAM OF INTERNATIONAL RENOWNED RESEARCHERS, HARVARD SCIENTISTS, ENGINEERS AND BANKERS. WE WORKED ON PORTFOLIOS AS LARGE AS $200 MILLION AND A HUGE PASSION FOR THE SPACE. STRATEGY X IS DEMOCRATIZING AL GORE MYTHIC TRADING. TRADERS, INVESTORS GO TO STRATEGY X TODAY TO RECLAIM YOUR ALPHA. THANK YOU. >>I HAVE A QUESTION OF SOMEONE WHO DOESN’T TRADE. THAT MIGHT END UP BEING ONE OF YOUR 100 MILLION EVERY DAY TRADERS. HOW, HOW ARE YOU GUYS TESTING ARE TRYING TO UNDERSTAND REALLY WHO IS ADDRESSABLE IN THAT 100 MILLION? ONE OF THE THINGS YOU HAD UP WAS FULL AUTONOMY. SO DOES SOMEONE AND THE STARTER AREA REALLY WANT FULL AUTONOMY OR IS IT ACTUALLY TOO CONFUSING? WHAT ARE YOU SEEING FROM THE BETA? >>ESSENTIALLY FROM OUR BETA WE HAVE DISCOVERED A COUPLE OF THINGS. NUMBER ONE, YOU ARE NOT EXACTLY CORRECT BUT AND NUMBER TWO, STIMULATION TENDS TO BE THE MOST INTERESTING PART OF OUR FORM. MANY PEOPLE OF BEEN OPEN TO WHAT WE HAVE WORKED ON OUR STRATEGY X MARKETPLACE THAT ALLOWS YOU TO PARK THE MONEY AND IN WEALTH MANAGER ALREADY EXISTED IN STRATEGY. WE’VE BEEN THINKING ABOUT COMING UP WITH SOLUTIONS TO HELP WITH THIS PROBLEM AS WELL. >>CONGRATS. IN TERMS OF YOUR DATA, WHAT ARE SOME OF THE KEY INSIGHTS, HOW LONG WAS THE BETA, HOW LONG WAS THE USER, HOW IS IT IMPACTING OTHER PRODUCTS IN THE FUTURE. >>RIGHT, ACTUALLY OUR BETA WAS 200 USERS, IT WAS A LITTLE OVER A MONTH AND A HALF WAS OUR LATEST COHORT. FROM THERE WE DISCOVERED THE BACK TESTING WAS ONE OF THE MOST INTERESTING FEATURES. SINCE WE ALREADY KNEW AND SAT DOWN AND BUILT WITH THE IDEA OF LONG TERM IN MIND, COMING UP WITH MATERIAL SUCH AS WHAT WE LIKE TO CALL INTERNALLY THE EXTENSION SYSTEM WHICH ALMOST USES PEOPLE USE THE STRATEGY X TO CREATE ANY TOOL THAT YOU LIKE. THAT INTEREST HAS COME MORE SO LARGER CLIENTS. WEALTH MANAGERS, HEDGE FUNDS ETC.. AS WELL AS EVERY DAY TRADER. >>YOU SAY YOU HAVE 10,000 PEOPLE ON THE WAITLIST. HOW DID THEY HEAR ABOUT YOU? >>A MIXTURE OF DISCORD IS WHERE IT STARTED. ESSENTIALLY THAT’S WHERE WE DISCOVERED A LOT OF THEM. WE ARE COLLEGE STUDENTS SO HEARING ABOUT IT ON JOURNEY AND CHATTING WITH OTHER FRIENDS AND WHATEVER, HAS REALLY BUILT THE WAITLIST A LOT. OUR EMAIL LIST DEFTLY PUSHED IT OUT. >>WHAT ARE THE THREADS THAT PEOPLE TALK ABOUT YOU? >>ALGAL TRADING. AND PARTICULARLY ALBERT TRADING READY READ IT. ALSO THAT’S PLACES WHERE PEOPLE TO THROW US OUT OF NOWHERE. >>IS THERE SOMETHING THAT YOU WISH YOUR SOFTWARE COULD DO THAT IT CAN’T TODAY? THAT YOU ARE DEVELOPING? WHERE IS IT GOING? >>ONE OF THE THINGS THAT, WILL FRANKLY BECAUSE THE INTERNAL SCRIPTING LANGUAGE THERE’S NOTHING IT TECHNICALLY CAN’T DO IN THE REALM OF COMPUTER SCIENCE, BUT ONE THING WE ARE WORKING ON IS BEING ABLE TO MAKE SURE DESK COP CLIENT CAN WORK WITH OUR MOBILE SITE CLIENTS. OUR MANAGER HAS THE CAPABILITY TO USE TECH TOOLS THAT IT CAN HAVE MORE PORTFOLIOS IN THE SPACE. IT’S A PILOT WE ARE BUILDING UP A POOL NOW FOR AND WE ARE EXCITED TO KEEP PUSHING THAT FORWARD. >>WHEN YOU DREAM THE DREAM OF WHAT IT WILL BECOME SAY 10 YEARS FROM NOW. WHAT IS A STAND FOR WHAT IS IT DOING FOR PEOPLE? >>WHEN WE SAY WE WANT TO DEMOCRATIZE ALGORITHM THE TRADING. WE MEAN THAT SERIOUSLY. HE IN ONE DAY THE WHOLE MARKET IS NOT 80 8% BUT 99% BOUGHT. WE WANT TO MITIGATE THE SIDE EFFECTS OF WHAT THAT WOULD BE. TAKING THE CONCEPT HOLISTICALLY FROM ITS CORE IS WHAT WE ARE FOCUSED ON. >>YOU HAVEN’T SPENT MONEY ON MARKETING RIGHT NOW. I GUESS YOU GUYS ARE RAISING. TELL US WHAT THAT GO TO MARKET STRATEGY LOOKS LIKE AND HOW YOU PLAN TO APPLY CUSTOMERS? >>WE FORMAL B2C, NURTURE THE COMMUNITY THAT WE’VE DEVELOPED AROUND OUR PLATFORM IS THE NUMBER ONE THING WE ARE PUSHING FOR. WE HAVE AN EMAIL LIST ALSO DEVELOP DIFFERENT SORTING MATERIALS WHEN CONTINUE TO SPREAD OUR WORD AMONG THE CREDITS OF THE WORLD. AS FAR AS B2C AND SEE TO BE WE HAVE PEOPLE REACH OUT ORGANICALLY WHICH IS VERY INTERESTING. WE WILL PROBABLY CONTINUE TO UTILIZE THAT MECHANISM PUSHING FOR REFERRALS. REFERRALS BEING AN OVER ARCHING THING FOR BOTH. >>ON A B2B SIDE DO YOU THINK IT WILL BE MORE SMALLER TRADING STOCK AS OPPOSED TO THE BIG ONES? WHAT IS UNDERLYING THAT QUESTION IS WHAT IS REALLY, WHAT IS REALLY DIFFERENT AND REALLY HARD ABOUT WHAT YOU HAVE BUILT? JPMORGAN OR GOLDMAN SACHS OR WHOEVER PUT A LOT OF RESOURCES TO TWEAK WHATEVER THEY ARE DOING NOW? THEY ARE USING SIMILAR TECHNOLOGY AND ARRIVE WHERE YOU ARE. >>ESSENTIALLY A CAN BREAK THIS INTO TWO PARTS. I’LL FOLK THIS ON THE FIRST MOM- AND-POP SHOP. YES THE OUTBOUND’S TEND TO BE FROM SINFUL MANUAL TRADING. THEY REALIZE THEY NEED A SOLUTION BECAUSE THEIR ANALYST DON’T KNOW HOW TO PROGRAM A CODE SO THEY REACH OUT TO US ASKING IF WE WILL HAVE A SOLUTION. NEXT FOR THE LARGE DPMS. FOR THOSE THEY FOUND VALUE IN US IN THE FUTURE. MORE SO WE REACH A FORMAL CLIMAX IN TERMS OF USERS BUT FROM THE MARKET WE USE OUR LEARNING MODELS THAT WE ARE DEVELOPING IN-HOUSE TO BE ABLE TO PROVIDE MORE INSIGHTS GOING FORWARD IN THE MARKET. >>ONE MORE ROUND OF APPLAUSE FOR STRATA AT. >>WE HAVE ONE MORE START UP. THAT IS A WILDCARD STARTUP WHICH MEANS IT WAS SELECTED FROM STARTUP ALLEY. WE HAVE HAD WINNERS FROM THE STARTUP ALLEY. THAT DOESN’T MEAN IT’S NOT AS GOOD IT MEANS THEY FOUND OUT YESTERDAY THEY HAD TO PUT THIS TOGETHER FAIRLY QUICKLY. LET’S WELCOME THEM, THIS DART UP GRAY. PRISON HE GRAY. NICK McCALEB DRAGGED MEN NICOLE AND MARCO PELLEGRINI. >>THE WORLD HAS A MASSIVE WASTE PROBLEM. EVERY SINGLE YEAR WE PRODUCED 2 BILLION TONS OF SOLID WASTE. 60% OF THAT GOES TO OPEN DUMPS AND LANDFIELD INCREASING ECOLOGICAL IMPACT. IN PARALLEL, THERE IS INCREASING REGULATION FOR RECYCLING AND WASTE EXPORT. THIS MEANS THAT THERE IS AN URGENT NEED IN THE COMING YEARS TO SORT OUR WASTE LOCALLY AND MUCH MORE EFFICIENTLY. SO THIS IS WHY A GRAY PARENT COMPUTER SYSTEMS FOR THE WASTE MANAGEMENT INDUSTRY. WE ARE USING DEEP LEARNING TO RECOGNIZE DIFFERENT TYPES OF MATERIALS AND OBJECTS. AND TO INTEGRATE THAT WITH ROBOTICS AND SMART SYSTEMS TO INCREASE EFFICIENCY. SO SPEAKING TO DOZENS OF EXPERTS IN THE INDUSTRY, WE UNDERSTOOD THAT THERE WAS INEFFICIENCIES ALL ALONG THE LIFECYCLE OF WASTE. FROM SEPARATION ALL THE WAY TO THE TREATMENT STARTING WITH THE LACK OF EDUCATION, THE LACK OF DATA AND TRANSPARENCY, THE HIGH COST OF MANUAL SORTING AND FINALLY THE VALUE DECREASING EVERY TIME THERE IS CONTAMINATION. AIV COMPUTER VISION HAS A POTENTIAL TO SOLVE PROBLEMS AT EACH PART OF THE VALUE CHAIN. THIS IS WHAT WE ARE FOCUSING ON. SO STARTING WITH SMART BINS AND REVERSE VENDING MACHINES WHERE TECHNOLOGY CAN IDENTIFY THE WASTE AND DECIDE IF IT’S CONTAMINATED OR NOT MAKE OTHER DECISIONS. TO WASTE MANAGING ANALYSIS IN TRUCKS AND BINS TO GIVE MORE INSIGHT TO THE WASTE MANAGEMENT INDUSTRY IN THE WASTE PRODUCERS. AGAIN I HAVE ANALYTICS AND HOW TO EDUCATE PEOPLE BETTER ON HOW TO STORE THEIR WASTE. ALL THE WAY TO THE INDUSTRIAL WASTE TO STORAGE FACILITIES. WE ARE CURRENTLY 60% OF IT IS DONE BY MECHANICAL SORTING AND THE REST IS DONE MANUALLY. THAT’S A VERY HIGH COST OF LABOR, DANGEROUS ENVIRONMENT AND THE REASON WHY IT’S HAPPENING IS PART OF THAT CHAIN, TECHNOLOGY IS NOT ABLE TO SOLVE THAT. DEEP LEARNING AND THE SYSTEMS, WE ARE ABLE TO RECOGNIZE IMPURITIES AND INTEGRATE THE ROBOTICS TO AUTOMATED THAT AS WELL. FINALLY TO QUALITY CONTROL, WE ARE ABLE TO GIVE INSIGHTS ON THE LEVEL OF QUALITY OF WASTE. THE WASTE MANAGER CAN EXTRACT THE MAXIMUM VALUE. AS SOON AS THERE’S NOT 100% PURITY LEVELS IN THE WASTE, IT’S NOT WORTH RECYCLING AND IT WILL GO TO OPEN DUMPS AND LANDFILL AS WELL. WE ARE GOING TO SWITCH TO THE DEMO NOW. SO THIS IS OUR FIRST PROTOTYPE. THAT WE BUILT. BEING ABLE TO RECOGNIZE 10 DIFFERENT RECYCLABLE. THIS IS PD THIS IS A TYPE OF PLASTIC THAT YOU ALL USE EVERY DAY AND EXPECT TO BE RECYCLED. THIS IS HDPE A DIFFERENT TYPE OF PLASTIC AND USUALLY USED FOR MILK BOTTLES THAT ARE KIND OF WHITE WHITE. THIS IS THE OLD DAY& MOVING ON, WE ALSO INTEGRATED THIS DEMO. INTO ROBOTICS. AS YOU CAN SEE WE ARE ABLE TO RECOGNIZE THE DIFFERENT MATERIALS. THEY GO INTO THE DIFFERENT BUCKETS THIS IS BLACK PLASTIC WHICH WE RECOGNIZE TODAY. IF WE GO FORWARD, YOU WILL BE ABLE TO SEE OUR NEXT INDUSTRIAL USE CASE. SO THIS IS THE FIRST PROJECT THAT WE ARE DOING FOR A CUSTOMER. THIS IS A RECYCLING PLANT IN KOREA. AS YOU CAN SEE THIS IS A PLAN WHERE THERE IS MANUAL SEARCHING SO THE END OF THE CHAIN. TO MAKE SURE IT CAN BE RECYCLED. WE HAVE ABOUT THREE PEOPLE WORKING JUST ON THE LINE. THE REASON WHY THE SYSTEM COUNT RECOGNIZE THAT. THE MODEL WE BUILT GOES TO THE NEXT SLIDE AS YOU CAN SEE THIS IS THE MAIN MATERIAL I CAN THE DIFFERENT SYSTEMS RECOGNIZE THE IMPURITIES. THERE ARE SUBTLE DIFFERENCES THERE IS PLASTIC AS WELL. THAT IS USE ONE FOR MONITORING. SO THE MARKET IS REALLY VERY BIG WE’RE TALKING ABOUT A 500 BILLION MARKET. 2035. 40 BILLION IS THE WASTE SORTING MARKET. THE WASTE IS 6 BILLION. OUR CURRENT CUSTOMERS ARE PRODUCERS, SMART MANUFACTURERS AND WASTE MENU MANAGERS. WE ALREADY HAVE TWO PARTNERSHIPS TO WASTE MANAGERS. ONE OF BEEN MANUFACTURED TO RSV ONE AIRLINE AND ONE COMPANY JUST IN SIX MONTHS OF STARTING. WE CAN GO TO THE NEXT SLIDE. OUR TEAM IS COMPOSED OF A MIX OF TECHNICAL AND COMMERCIAL SKILL SET. WE WILL WORK TOGETHER PREVIOUSLY TO BUILD COMPUTER SOLUTIONS AND WE BELIEVE THAT WE WANT TO PUT OUR EXPERTISE TO WORK TO SOLVE THIS MASSIVE PROBLEM IN THE WASTE INDUSTRY. THANK YOU. >>HUGE PROBLEM, COMMEND YOU ON GOING AFTER IT. SOUNDS LIKE COMPUTER VISION AND ROBOTICS. HELP ME UNDERSTAND WAS PROPRIETARY ABOUT WHAT YOU HAVE BUILT? >>WHAT WE ARE BUILDING IS EEI MODELS. WE HAVE OUR OWN DATA THAT WE ARE CONNECTING. WITH SOUTH KOREA AND THE UK. WE HAVE A CUSTOM HARDWARE TO BE ABLE TO BE ABLE TO FILM AND CAPTURE THE DATA IN A VERY EFFICIENT WAY. WE ALSO HAVE OUR OWN FRAMEWORK TO BE ABLE TO GET TO VERY HIGH RESULTS WITH THE LOW AMOUNT OF DATA. >>THE QUESTION I HAVE IS ABOUT THE PRODUCT AND THE APPROACH YOU’VE GOT THREE BUCKETS PRODUCES MANUFACTURERS AND THE WASTEWATER. CAN YOU HELP US WHY YOU ARE GOING AFTER ALL THREE OR WHETHER YOU ARE FOCUSED ON ONE AND YOU THING ONE WILL DRIVE THE VALUE OF THE BUSINESS AND THE IMPACT LEX >>THEY ARE ALMOST NOT ON THE SAME LEVEL. THE WASTE MANAGERS AND THE WASTE FACILITIES ARE THE ONES THAT HAVE A PROBLEM IMMEDIATELY. IT’S VERY CLEAR AND INTIMATING THE TECHNOLOGIES WILL HAVE A THING THAT THEY CAN IMPACT ON THEIR BOTTOM LINE AND ON THEIR REVENUE QUITE QUICKLY. THAT’S HER FIRST FOCUS AND THAT’S WHERE WE ARE DOING OUR FIRST PARTNERSHIPS. THE REST ARE MORE PILOT WITH THE INDUSTRY SEEKING MOVING TO DIFFERENT TYPES OF MET WASTE MANAGEMENT SYSTEM. CURRENTLY EVERYTHING IS VERY CENTRALIZED. WE ARE SEEING A SMART BINS COMING THROUGH WHERE INSTEAD OF WAITING TO DO THE SORTING AT THE END, IT WILL HAPPEN BEFORE. WE WANT TO MAKE SURE THAT WITH THE SMART BINS AND ALSO WITH THE PRODUCERS, WE ARE EARLY IN THE GAME TO BE ABLE TO HELP THEM WITH THAT PROBLEM. >>FOR A FOLLOW-UP QUESTION. YOU GUYS ARE A SMALL TEAM, SMALL AND MIGHTY IS THAT DISTRACTING GOING AFTER ALL THREE? >>POSSIBLY, THIS IS WHAT WE ARE EXPLORING RIGHT NOW. WE ARE GETTING A LOT OF TRACTION A DIFFERENT AREAS. FOR THE NEXT FEW MONTHS WE WILL REFINE THAT A LITTLE BIT MORE. WHAT’S IMPORTANT, WE ARE SEEING OUR MODELS HIGH CHANCE FOR BETWEEN THE BASES. WE WANT TO KEEP OUR POSITION AND WE SEE PEOPLE TRY TO GO INTO THE INDUSTRY VERY DEEP INTO ONE WITH INTEGRATION HARDWARE AND THAT BECOMES VERY DIFFERENT TYPE OF COMPANY. WE WANT TO MAKE SURE EVEN THOUGH THAT IS NOT HER PRIMARY SPACE, WE ARE STILL STARTING TO UNDERSTAND HOW WE COULD GO TOWARDS THEM IN THE FUTURE AS WELL. >>WHEN YOU ARE PITCHING GRAY PARROT TO POTENTIAL BUYERS, WHAT IS IT, WHAT YOU THINK ABOUT FROM A VALUE PROPOSITION POINT OF VIEW THAT IS THE REASON TO GET EXCITED? IS IT THAT YOU ARE SAVING TIME, MONEY, IS IT EFFICIENCY? WHAT IS DRIVING THE DEMAND FOR THE PRODUCT? >>IT DEPENDS ON THE CUSTOMER. FOR THE WASTE MANAGERS IT IS VERY DIRECT EFFICIENCY. BECAUSE IF THEY ARE ABLE TO IMPLEMENT THOSE COMPUTER VISION SYSTEMS FOR MONITORING AND INTEGRATED WITH ROBOTICS THAT WILL IMMEDIATELY CUT THEIR COSTS. THAT WILL ALSO HELP THEM INCREASE THE OUTPUT IN VALUE THEY CAN GET FROM THE WASTE. SO THEY CAN GET MORE REVENUE FROM IT. THAT’S A VERY CLEAR KIND OF OFFERING. FOR THE PRODUCES LIKE FOR EXAMPLE AIRLINE, THEY WANT TO HAVE MORE, SMART BINS COMPANIES THEY WANT TO HAVE ANALYTICS TO HAVE A BETTER DECISION WHERE THEY SEND THE WASTE. FOR EXAMPLE, CURRENTLY SENSORS TO KNOW THE FILL LEVEL THAT HAS A HUGE IMPACT ON HOW THE TRUCKS ARE GOING AROUND. SO WE CAN SELL THEM SOMETHING CONTAMINATED OR NOT THAT WILL GUIDE THAT. DIRECT COST SAVINGS IS SIMILAR. >>IT SOUNDS TO ME THAT FOR THESE TWO TYPES OF CUSTOMERS, FOR THE AIRLINES AND YOU KNOW FOR THE SOFTWARE SOLUTION STANDALONE SEEMS TO BE SUSTAINABLE. BUT FOR THE WASTE MANAGERS, BUT BEING ABLE TO HAVE THE HARDWARE AND REALLY SORT THINGS, IS IMPORTANT SO HOW FEASIBLE IS IT FOR YOU TO GIVE SOFTWARE ONLY SOLUTION IF YOU’RE GOING AFTER THE WASTE MANIC MANAGEMENT? >>THAT’S A GREAT QUESTION. WE STARTED THE JOURNEY WITH THAT HYPOTHESIS AND TO MAKE SURE WE ARE STILL QUESTIONING THAT. FROM WHAT WE ARE SEEING IN THE FIRST PARTNERSHIP THAT WE HAVE, THEY ARE VERY HAPPY TO ACTUALLY HAVE THE ROBOTICS BECAUSE THOSE ROBOTS ARE ACTUALLY OFF THE SHELF ROBOTICS IT’S NOT A BIG EXTENSION. THIS ALSO GIVES DIFFERENT TYPES OF FACILITIES. CURRENTLY IN THE TWO PARTNERSHIPS WE HAVE IT IS DEFINITELY WORKING. IT IS POSSIBLE FOR SOME CLIENTS THAT WILL NOT BE SUFFICIENT. WE ARE ALSO PARDONING WITH COMPANIES THAT DO HAVE THE MECHANICAL ABILITY AS WELL. SO THAT’S REALLY IMPORTANT IN THE PROCESS ALSO. DO YOU WANT TO ADD ANYTHING. >>OUR FIRST CUSTOMERS WE GET A ROBOT. WE HAVE IT IN-HOUSE. WE KNOW VERY WELL HOW WE ARE GOING TO INTEGRATE. AND HOW WE KNOW IS GOING TO WORK. >>WE ACTUALLY DO THE RESEARCH TO TELL THEM WHAT NEEDS TO HAPPEN BUT WE DON’T DO THE MANUFACTURING. >>IS KIND OF HALFWAY. >>GIVE IT UP FOR GRAY PARROT. >>THANK YOU. >>THAT’S A STARTUP BATTLEFIELD. TOMORROW WE WILL HAVE THE FINALS. BEFORE WE CAN HAVE THE FINALS THE JUDGES HAVE TO GO BACKSTAGE, THEY ARE GOING TO FOLLOW ME BACKSTAGE AND HELP CHOOSE THE FINALISTS. ONE MORE ROUND OF APPLAUSE FOR OUR JUDGES. >>WHY DID YOU COME TO THE WORKSHOP? TO LEARN. >>I WANT TO BE WHERE WE ASK QUESTIONS LIKE WHY. AND THE BEST QUESTION I ASK YOU IS WHAT IF. IT’S A DIFFERENT WAY OF THINKING AT STANFORD THAN IT IS AT ANY OTHER UNIVERSITY IN THE WORLD. >>I REALIZE I WAS GETTING STALE SO YOU KNOW WHAT, IT’S TIME FOR ME TO MOVE ON. AND LOOK FOR GREATER THINGS. AND HAVE MORE IMPACT. >>AT LOCKHEED MARTIN WE ARE AT A MISSION. YOUR MISSION. WHEN MILLIONS OF PEOPLE ARE COUNTING ON YOU. LADIES AND GENTLEMEN. PLEASE WELCOME BACK TECH FRONT MANAGING EDITOR AND Mc JORDAN KRUK. >>HELLO. YOU GUYS IMAGINE IF I HAD ANOTHER SURPRISE GUEST FROM GAME OF THRONES WHEN YOU ALL WALK OUT WESTMONT WHAT IF THAT IS HAPPENING RIGHT NOW? YOU ARE A LITTLE NERVOUS? DOORS OPEN TOMORROW 730 WE WILL SEE YOU IN YOUR SEATS AT NINE. CAN’T WAIT TO SEE YOU. BYE. GOOD NIGHT, SEE YOU TOMORROW.

    Can You Get Rich by Following the “Smart Money”? / Follow institutional order flow Dark pool trading
    Articles, Blog

    Can You Get Rich by Following the “Smart Money”? / Follow institutional order flow Dark pool trading

    October 8, 2019


    Can You Get Rich by Following the “Smart Money”? // Follow institutional order flow, dark pool trading, block trades, on balance volume, on balance volume indicator, dark pool explained, stock market investing strategies welcome to looking at the markets with David Moadel today we’re going to try to answer the
    question can you get rich by following the smart
    money block trades institutional order flow these are some of the terms that vaguely
    lead us to the notion of smart money these evidently are powerful investors
    that make profitable trades before the dumb money or retail traders try to jump
    on the bandwagon but inevitably end up missing the boat often it is asked whether retail traders
    can trade alongside the smart money mirroring their trades and effectively
    piggybacking or riding their coattails – big profits who is the smart money
    anyway the term smart money generally refers to
    some or all of the following high-frequency traders hedge funds
    market makers large institutions algorithm-based investors and any person
    or institution that makes very large volume trades at any given time the
    vagueness of the term smart money makes it difficult for retail traders to
    follow them because it’s not exactly clear who they are besides the trades of large investors
    can be highly misleading and blindly following their moves might not benefit
    retail traders for all we know a seemingly bullish moved by the smart
    money might actually be short covering or a
    hedge against a bigger bearish position for example buying shares or calls of SP
    why as a hedge against a larger position in a vicks product or classic market
    manipulation using their big influence to drive up the price of a stock before
    retail gets in and then selling while retail is left holding the bag while a
    seemingly bearish moved by the smart money might actually be profit-taking or
    scaling out of a bigger foolish position or a deliberate attempt to take out retail stop losses before turning around
    and pushing the price higher besides some of the really big trades
    aren’t available for retail traders to view until hours later or even a day
    later by then it’s probably too late to do anything useful with the knowledge of
    those trades while retail trades are transparent the
    smart money has the privilege of making temporarily secret or hidden trades this is known as dark pole trading and
    while it might be controversial it’s currently legal in the United
    States Chartists might try to use obv or on balance volume as a proxy for smart
    money movement in order to predict where price action will go personally I find that on balance volume
    tends to move in tandem with price action rather than before it thus
    diminishing its predictive ability to conclude I would recommend against
    trying to follow the smart money as a get rich strategy instead focus on
    building a safe consistent plan for long-term growth in your trading account
    if you’d like more help with this or with anything having to do with finance
    stocks or options please feel free to contact me my name
    is David Modell you can reach me anytime at David Modell
    @ gmail.com I hope this was helpful and I hope to
    hear from you very soon

    Articles

    Game of Loans Episode 3 – A Trade of Goats

    October 4, 2019


    So in the last
    couple of videos, we talked about what the interest
    rate is, how it’s set, and why the central bank
    might adjust the money supply to affect
    the interest rate in order to keep the
    economy at full capacity and with stable
    and low inflation. Yeah. I’m pretty sure I got at
    least half of all that. Come on, [INAUDIBLE]. You know I’m giving
    up valuable research to make these videos with you. Well, you’ve got admit it, Dan. This is way more fun than making
    us do boring econ research. Moving on. All right, so you’re right. We did look at why the bank
    might change interest rates, but we didn’t talk about
    how, how they might do it. OK, sure. But before we start
    to talk about this, did you not get any
    promotions from last time? I see no new props. Oh. Well, I’m glad you asked,
    Dan, because check this out. Whoa. Aha! You like this? It’s my newest gift. What are your opinions on
    knighting me for my great work? No. All right. Anyway. So we talked about how the
    central bank affects the money supply. There’s demand for money. There’s an interest rate. Yeah. And we assumed that people get
    the money by actually going directly to the central bank,
    but the central bank actually lends it out. Yeah, but I’m assuming that’s
    not how it works in real life? No. In reality, it’s not
    like you’re going to write a letter to
    Janet Yellen, the chair person of the Fed,
    asking her for a loan. Oh. But the thing is, I did
    write a letter for this loan that I wanted, and I’m just
    waiting to hear back now. It should be any– No, just keep waiting. You’ll be waiting
    for a little while. Or you could actually
    just go to a local bank and ask for a loan
    from a local bank. And that we haven’t
    incorporated into our framework. Oh, OK. OK. So why don’t we do that now? Yeah, let’s do that. So if I remember correctly
    in the last videos, we talked about how
    these three farmers get the money they want. Yeah. And these guys
    didn’t get the money. They didn’t have a high
    enough willingness to pay. And if I recall, they crawled
    into a ditch or something. Yeah, i know. That was great. OK. So now let’s say that
    they exist again. They’re back. They’ve come back from this
    ditch, come back from the dead. Come back from the dead? Like Jon Snow? Sure. Like Jon Snow. Anyway, they’re no
    longer in a ditch. Yeah. They’re pretty happy
    about the future. Maybe they have higher
    willingness to pay. So they’ve got some
    demand for money. Where do they get
    that money from? Well, this is Game of
    Thrones, so I’m just assuming that they’re going
    to throw this big party, invite people over, and then
    massacre them during dinner and then steal the money
    off their still warm bodies. I guess so. That’s one way. Or they could go
    to a local bank. How about that? They could also do that. Yeah, they could do that. OK, right. So where do these
    local banks come from? Why do they exist? So these guys still
    have demand for money. Let’s say this guy that wanted
    the boat– he built his boat. He gave a bunch of
    people boat rides, so he made a bunch of
    money back and now he wants to save that money. OK. Right? So these guys want to borrow. This guy wants to save. How do they actually make a
    loan between the two of them? Yeah it’s not easy,
    right, because it’s not like they have
    email or anything. Right. There’s no pigeons. Crows behave weirdly. If you say so. I knew you weren’t
    going to get it. Anyway. So I guess you need like an
    intermediary of some kind, right? Yeah. Let’s say that there’s a bank. All right. Let me draw this. Looks pretty good. No, looks good. I can tell it’s a bank. All right. So this guy has extra money. He deposits his
    money at the bank. OK. And that’s sort of
    like a central meeting place for people that
    want to lend money– Right. –can exchange with people
    who want to borrow money. Yeah. And then they just like take
    this money that just came in and give it to these guys. Exactly. Perfect. And it’s convenient,
    because you don’t need to go all the
    way to Braavos now. You can just– Right. You don’t need to go
    to this central bank. You just exchange
    money among each other. OK. So now that’s clear. But then why do I need
    this guy, central bank? Why can’t I just do all my
    business with the local guy? You’re saying if
    everyone that’s lending can meet up with the
    people that want it, why do we even need
    a central bank? Well, the central bank
    still has an important role in actually effecting
    the money supply. There’s a certain
    amount of money that’s already out
    in the economy, and the interest rate will
    depend on how much money is out in the economy. Even though people are borrowing
    and lending from each other, they have to get that
    money from the central bank into the economy. OK. So the question is,
    how do they do that? Yeah, exactly. So there are two ways
    that you can do it. One is the Bank of Braavos
    could just make loans directly to this bank. It could give gold
    coins to the bank and then the bank
    could lend it out. OK. So they just have like– they get sacks of
    coins, basically. Yeah. Which they’ll have to pay back
    ultimately, but in the meantime they can lend it out. OK. The other way is
    that they can just exchange gold coins for assets. Assets. What do you mean? OK, how about goats? Goats. Goats. This is– right? Game of Thrones. Yeah. Are there goats in– Yeah. But this guy needs goats,
    so clearly there are goats. There are goats. So let’s say that
    this guy has a goat. All right. He has goats. And it’s valuable, right? It makes milk and
    does other things. That’s beautiful. It looks like a tooth,
    but we’ll call it a goat. Yeah. This guy has a goat. He’s not going to trade
    this for beer at the tavern. It’s not very liquid. Yeah. But maybe he’ll
    say, you know what? I’ll trade with
    the central bank. I’ll give you this goat. You give me gold coins. And then he can
    take his gold coins. He can buy his medicine or
    his beer from the tavern. Oh. And then he’s all good. I get it. And then the central bank
    is just now buying goats. Yeah. Now it has goats. What does it do
    with these goats? Stores them in a vault,
    or holds onto them. OK. Don’t worry about. OK. My point is, it took
    goats, put out money. Then that money can circulate
    through the economy. OK. So what have we done? We’ve seen first of all
    how interest rates are set, why the central bank might
    want to adjust interest rates in order to
    basically either make spending greater in the
    economy or to reduce spending in the economy. Now what we just showed is
    how the central bank actually gets money into the economy
    in a way that we think is consistent with what we
    see in the real world, which is people actually
    going to local banks. OK. I got all of that, and
    we used Game of Thrones. Yeah, which is not bad. But so what we haven’t
    talked about yet is how different
    things that can happen will affect the macro economy. So for example, let’s
    just say that you think that there’s going to be
    a war among the seven kingdoms. How might that affect
    the macro economy? Whoa. Whoa. Dan, Dan. Have been watching
    Game of Thrones? No. Have you? No, no. Just I assume there
    are some kingdoms and there might be a war, right? I mean, this is
    medieval times, right? Right. You know what? We’re going to make another
    video about the war, but also we’re going to discuss
    this Game of Thrones thing. If you say so. All right. Next time. See you.

    Articles

    Wall Street Warriors | Episode 8 Season 2 “Distant Indicators” [HD]

    September 30, 2019


    LAETITIA:
    (vo) Coming up next on Wall Street Warriors… [Chyron-COMING UP] GARRETT:
    I didn’t come three thousand miles, okay, to get hung up on. I’m good at what I do. I work my balls off. LANCE:
    This will spook a lot of people. You know, you look at a stock that you have
    a couple thousand shares that’s down seven and a half bucks, people wanna run, they wanna
    sell. BRETT:
    I’m in the Dominican Republic right now to meet with a potential investor for our fund. WASSIM:
    This area will become basically the private beach. LARRY:
    We have a hurricane forming off the coast of South Africa. It could slam into Florida. It’s [bleep]ing scary. [OPENING CREDITS SEQUENCE] [Exterior sequence of shots-Day] [Cut to the Stock Exchange] [Chyron-The fallout from the subprime credit
    crisis is now in full effect] [All shouting] [Larry is on the floor of the Stock Exchange] MALE:
    Two-eighty, [word?] two-eighty again. LARRY:
    Overnight, trillions of dollars have disappeared from the system. So there is a ramification and spillover effect
    into the commodities, into the metals, into everything. You hear any talk of that in there yet or
    not really? MALE:
    No. LARRY:
    This is the entire world making too large a bet with other people’s money and leveraging
    those bets. And the reality is this bet should have never
    been made. We are bracing for a slowdown, a recession. Earnings are gonna dry up. Your hedge funds are gonna dry up. You’re gonna start seeing layoffs on Wall
    Street. (yelling) At three and a–, at three and a
    half. At three and a half. Look, this is what markets do. They weed out the people that aren’t supposed
    to be here over time. I mean, there’s too many untalented people
    that are managing too much money and should have never been doing that. And now it’s, you know, coming time to pay
    the piper. (yelling) Said five and a half. MALE:
    Five and a half. Five and a half. [all shouting] LARRY:
    We live in an incredibly historical time. I think that we’ve grown up accustomed to
    rising prices, rising real estate, rising stock markets, rising bond markets. Most of us have never experienced a downside. You know, maybe 1987, if they can remember
    back that far, you had one day. We dropped twenty-five percent, but after
    that, it was straight up and a–, you know, for years. One bid. Back to one third again. The world is starting to realize what the
    downside volatility can look like, and it’s [bleep]ing scary. [all shouting] [Exterior shot-Day] [Chyron-ONE WEEK AGO] [Cut to Land and James at the office] JAMES:
    Wow. Look at that thing move. Holy [bleep]. I’ve never seen a stock do that before. There’s no point in even watching it right
    now. Last week, SanDisk had earnings, their Q3
    earnings call. They beat the earnings estimates out there. Most people were expecting about thirty-two
    cents, they came in at fifty-four. [Chyron-SanDisk is one of their top portfolio
    holdings] LANCE:
    Just going [bleep]ing bonkers. One time. It was one of those things on Wall Street
    where, basically, the company reported great news, and we had a bad result. What I mean by that is Eli Harari, the CEO,
    came out and said, “Guys, listen, we’ve got more demand than we can meet. We can’t even meet all our demand for the
    fourth quarter.” JAMES:
    The stock pulled back a couple dollars that night, um, but nothing major. (on phone) Right, so what you’re seeing is
    they traded down recently. Friday, we come in, and coincidentally, uh,
    it was the 20th anniversary of the big market crash. 1987, October, there was a huge market crash. LANCE:
    It only added fuel to the fire, threw some kerosene on it. SanDisk was down seven and a half bucks. JAMES:
    Wall Street can certainly be a superstitious bunch. Uh, the guys I talked to, there’s definitely
    some hard feelings, they didn’t want to buy stock Friday morning and, apparently, no one
    was buying SanDisk Friday morning, either. (on phone) What you’ll find today is you get
    the stocks on sale. LANCE:
    Short-term tabulation right here, but me and Jimmy are making sure we get all these guys
    on the phone, making sure no one’s losing faith in our story, and that’s what we’ve
    got to do for the next couple weeks. [Chyron-During this period, 13 analysts had
    set the average price target for SanDisk at $63] JAMES: (on phone)
    You don’t have a cowboy running this company. He’s the founder of the company. He’s still the CEO. LANCE:
    This’ll spook a lot of people. You know, you look at a stock that you have
    a couple thousand shares that’s down seven and a half bucks, people wanna run, they wanna
    sell. First thing, the easiest thing to do is sell
    your stock. I want out of this thing, it’s not performing. You know, the hardest thing to do is, is really
    grab your balls and buy some more stock down there. Lower your dollar-cost average, you know,
    and that’s what we’re trying to do. JAMES: (on phone)
    Especially with the numbers that came out, you know, with the new earnings. You know, Wall Street is the type of place
    where it’s not what you’ve done yesterday, it’s what you’re gonna do tomorrow. LANCE:
    We got a seventy dollar stock on our hands, we just have to make sure we get there one
    way or the other. JAMES: (on phone)
    Like I told you, this is a long-term relationship, but I, I’m looking to prove myself to you. [Cut to exterior sequence of shots-Day] [Chyron-THE DOMINICAN REPUBLIC] BRETT:
    I’m in the Dominican Republic right now. I’m here to meet with a potential investor
    for our fund. I’m meeting with the owner of Sun Village
    Resorts. I’m not sure exactly what to expect here,
    but this is an opportunity to get to know him better and hope to have him see the value
    of our fund and, uh, look to invest in us. [Exterior sequence of shots] [Cut to Brett arriving at the resort] BRETT:
    It’s a really gorgeous landscape here, and I can see there’s a lot of development going
    on now, which is why I’m up here to meet with the owner. He’s made a tremendous amount of money off
    the real estate here. They’ve been investing here for twenty or
    thirty years, and as additional foreign money comes into the island, he just continues to
    profit from that. (on cell phone) Awesome. So we’re firing up the audit, then? [Brett enters his hotel room] This is great. Very nice. The owner put me up in a maxim bungalow, two-bedroom
    suite. He’s really taking care of me. It’s great when you can combine business with
    actual relaxation a little bit, so this is my weekend. I’m taking the early flight back on Sunday,
    uh, to get back and get some work done for a Monday morning meeting, uh, but in the meantime,
    you know, I’ve got a couple days to enjoy myself, meet with some locals, try to, try
    to understand more of the life of one of my clients. [Exterior sequence of shots-Day] [Chyron-PARIS, FRANCE two weeks ago] RICHARD:
    Richard Holthaus. Nice to meet you. LAETITIA:
    Laetitia. Pleased to meet you. RICHARD:
    Have a seat. We are looking to recruit one person at the
    analyst level. Uh, we focus primarily on restructurings. It’s very labor-intensive. You should know this. LAETITIA:
    Two weeks ago, I had an important job interview with Richard Holthaus. He’s looking to hire a couple more analysts
    for his company, and the way he talked to me, I just kind of assumed he was gonna offer
    me the position. He wanted to meet again and discuss things
    more. [speaks French]
    [subtitle] I’m going to think about it. When you come back in two weeks I will have
    an answer for you. [Chyron-TWO WEEK LATER] [Sequence of shots of Laetitia in Paris with
    her sister, Alex] LAETITIA:
    I’ve been in Paris for two weeks now and in terms of job prospects, I didn’t really know
    what I was gonna do. And then Richard called me back, and he wants
    to meet again, and he wants to know if I’m really interested in the position. [speaks French] So I’ve got a meeting with him this afternoon. And then also, a couple days ago, I heard
    back from this company based in New York. They’re called FXCM, and it’s basically a
    foreign exchange trading company. I’d been in touch with them before graduation,
    and they’re interested in seeing me regarding a junior analyst position there. So, you know, I’ve got that going on in New
    York. [Fade to Laetitia in a restaurant] [speaks French] Richard and I decided to meet over lunch at
    a restaurant by his house. I was a little nervous. [Richard enters] You know, now I’ve got these two offers all
    of a sudden coming at me. I’m torn. There’s New York on one side, Paris on the
    other, and, you know, I have to make a decision, and… I, I don’t know yet. RICHARD:
    Hi, Laetitia. LAETITIA:
    (overlapping) Hi. How are you? RICHARD:
    How are you doing? LAETITIA:
    I’m good. BRETT:
    (vo) Coming up next on Wall Street Warriors… [Chyron-COMING UP] GARRETT:
    I sent you some details with regards to my firm. JAMES:
    Lately, we’ve been trying to get exposure overseas. We believe we’ve hit pay dirt with Garrett. GARRETT:
    I didn’t come three thousand miles, okay, to get hung up on. Give me one shot, okay? I’m good at what I do. I work my balls off. [COMMERCIAL BREAK] [Exterior sequence of shots-Day] [Cut to the brokerage office] MALE: (on phone)
    Uh, yeah, good morning. Let me get Mike on the telephone, please. MALE: (on phone)
    Listen, Kirby, I want to be really brief with your time here. GARRETT: (on phone)
    I sent you some details with regards to my firm. Have you had a chance to go over it yet? JAMES:
    One thing we like to do as a group is bring on a staff of guys to help us with our, our
    marketing and just basically our footprint. GARRETT: (on phone)
    Let me ask you, are you familiar with the company? Did you ever hear of ’em? I’ll fill you in. They’re one of the largest natural gas producers
    over here in the States. JAMES:
    Lately, we’ve been trying to get exposure overseas, with Great Britain,
    Ireland, Scotland. We believe we’ve hit pay dirt with Garrett. GARRETT: (on phone)
    Right now, the stock is currently priced at a touch over thirty-six dollars a share. JAMES:
    He’s pretty much right off the boat from Ireland. We had to get him all, all his visas and everything
    to make sure he was legally allowed to work. So far, so good. You know, he’s, he’s opened lots of accounts. GARRETT:
    Look, I didn’t come here, I didn’t come three thousand miles, okay, to get hung up on. Give me one shot, okay? I’m good at what I do. I work my balls off. I came over here with nothing to my name. I’ve worked up a reputation. I have successful clients. JAMES:
    He specializes, I could say, in contacting businessmen in Ireland. GARRETT:
    The thing about it is, okay, if I was calling America, people are a lot more short with
    me. I’m not, don’t call them as much anymore now
    that I’m getting’ great success in Ireland. I’d just rather put in the extra hours. I’d rather get in at four o’clock in the
    morning and call Ireland than stay later. GARRETT: (on phone)
    They earn north of four dollars, fifty cents a share. Now, growth rate alone, I think you’ll agree
    with me here, enough reason to already own the stock. People often say to me, you know, you’re only
    on the phone to me this long because you’re Irish. It just makes them feel a little more comfortable. You can interact, you can make them trust
    you a bit more, which is very important in the business relationship, especially when
    you’re managing people. (on phone) Welcome aboard the team. Let’s go make some money this year, eh? Thank you. Thank you. Bye. JAMES:
    Yeah, kid. JAMES:
    Well done, bud. LANCE:
    Put ’em on the board? GARRETT:
    Put ’em on the board, man. LANCE:
    This is just the board of, uh, new clients and new assets that we raised. So it’s just date, name, how many shares,
    stock, and, uh, Garrett’s initials, so– JAMES:
    Is that three for him today? LANCE:
    It’s the hat trick. JAMES:
    Well done, bud. GARRETT:
    Cheers. JAMES:
    Is that your first hat trick? GARRETT:
    It actually is, yeah. LANCE:
    That’s how you make a lot of money in the business right there, opening a lot of accounts,
    bring in news assets, so this guy’s gonna be a millionaire next couple years. He does a hell of a job. GARRETT:
    More information on myself. Garrett from Dublin, obviously. [Exterior shot-Day] [Back to the Stock Exchange] MALE:
    …tremendous opening just on the eight and a half strike. LARRY:
    The frozen concentrate orange juice that you’re buying today in your supermarket, that price
    is being dictated right here on this floor. Every single day, that price will change,
    depending on if there’s more buyers or more sellers and who’s doing what. [all talking] LARRY:
    We have a hurricane forming off the coast of South Africa, Hurricane Dean. It’s right now a tropical depression expected
    to form into a hurricane, could slam into Florida at the end of next week. So we have a lot of variables at work. Give me an idea of what the weather looks
    like with this Hurricane Dean. Is there any, can we get an update? Here’s the forecasted eye. MALE:
    Slightly south. MALE:
    Happy hurricane season, everybody. (laughs) LARRY:
    What do you think of this hurricane? That’s why I thing the market’s gonna
    be— MALE:
    (overlapping) I think the hurricane’s bogus. LARRY:
    It is bogus but it’ll support the market for an hour or two. MALE:
    (overlapping) Bogus. Ninety percent of them are. LARRY:
    Right. MALE:
    Except that one we had a few years ago. LARRY:
    (overlapping) Except the one that’ll put you out of business. MALE:
    You go back to ’04, when hurricanes really weren’t a factor involving the orange juice
    market, and I think it was Hurricane Charlie which actually brought us into the hurricane
    phase. It caught everybody by surprise. LARRY:
    Hurricane Charlie, that wasn’t supposed to go through the crop, it was supposed to be
    down in Tampa Bay, and literally, the thing made a U-turn at the last minute and went
    right through the crop. When you’re dealing with Mother Nature, it
    can come from, from anywhere, and it can come, you know, here’s a hurricane that’s not even
    expected to go anywhere near the crop, it’s dead quiet in here, and then all of a sudden,
    it makes a U-turn at the last minute. Bang, it’s in the crop. [Back to Laetitia in Paris…] RICHARD:
    Thank you for coming in. Um, I just got back from New York City. LAETITIA:
    Oh, how was it? How was your trip? RICHARD:
    Tiring, as usual. LAETITIA:
    Yeah. RICHARD:
    New York’s fun, but it’s, uh, it’s crazy. LAETITIA:
    Yeah, you can’t do it anymore. RICHARD:
    This business definitely does beat you up. I sent you all the data points. And thank you for your e-mail. Obviously, as I explained to you, uh, several
    weeks ago, it’s a particular type of fit that we’re looking for in terms of the language
    and international background, um, and coming from a good American school. Have you had time to– LAETITIA:
    Yeah. RICHARD:
    Think about family and your friends and your, your inner thoughts. LAETITIA:
    (overlapping) I, I’ve, yeah, I’ve thought it over. I’ve been, I’ve been here for two weeks,
    you know, and gotten to see a little bit of what Paris was about, and I, I just don’t
    think it’s the right fit for me at this point in my life. My life is in New York, my friends are there,
    although my family’s here. I, you know, it’s too big of a change for
    me to move here, and I actually just heard back from a company in New York that, I was
    in touch with them right before I graduated. Um, they do foreign exchange trading, and
    I think it’s something I’d be really interested in. RICHARD:
    Okay. LAETITIA:
    I didn’t know how to tell him, really, that I, I just wasn’t gonna accept his offer. I think that honesty works best. He understood. You know, and I mean… the main reason I
    didn’t accept the job is, from the get-go, he let me know it was, you know, a big commitment. Not only the job, but also, you know, leaving
    New York and coming here. I don’t, I don’t think I’m ready for that. Maybe, you know… RICHARD:
    That’s fine with your parents and everything? LAETITIA:
    I mean, they’re, of course, they’d much rather have me stay here but, you know, they understand. I mean, obviously, I’m twenty-one now. I can’t, you know, always be with them. RICHARD:
    We’ve all been there, just fresh out of school. Sounds like you have a path which you want
    to explore. What I propose, then, is, um, you know, we
    keep in touch. Um, I wish you lots of luck. LAETITIA:
    Thank you. RICHARD:
    Um, it’s an exciting time for you, so… give it your best shot, and I hope, uh, I hope
    you’re successful. [Back to Brett in the Dominican Republic…] [Chyron-Brett is in the Dominican Republic
    to get a wealthy developer to invest in his fund] BRETT:
    Got settled into the hotel finally, and one of the things I wanna do is learn more about
    the owner’s assets, what he has here, what’s important to him, to try to find ways that
    I can actually add value to his business. (on cell phone) Hey, I wanted to check as
    well if you’d be able to see if all the wires hit? You know, there’s no better way to create
    a bond with a potential investor when you can actually help drive revenue to his business. The owner, as you can imagine, is extremely
    busy. He’s running a lot of things, he has a lot
    of properties, he’s actually building another property on the island right now as well. But we’re gonna be hopping on the yacht later
    tomorrow, so his marketing manager, Wassim, um, took us around for a tour around the island. WASSIM:
    There’s about seven and a half million people on the whole island. Here we have this… BRETT:
    He showed us four or five of the seven pools, a bunch of the different huts and, and dinner
    areas. WASSIM:
    This area, up to about this step, will become basically the private beach. BRETT:
    They’ve been running the Sun Village Resorts over 20 years. The maxim part of it they just kicked off,
    so I’m trying to think of ways that I might be able to get involved in helping with what
    he’s doing. WASSIM:
    I, I think it has to do more from the investment point of what the Europeans have done in the
    Caribbean. BRETT:
    Mmm. WASSIM:
    There’s a lot of Spanish investment, German investment. They’ve invested big. BRETT:
    I can see the value proposition into why people would want to come down here. You can fly here for the weekend from New
    York. It’s a three-hour flight, and you have an
    absolutely stunning environment. WASSIM:
    The sailboats are included. The wind surfing’s included. BRETT:
    It was a great opportunity to learn more about what’s important to him, find out other ways
    I can add value to his life and his business. LANCE:
    (vo) Coming up next on Wall Street Warriors… [Chryon-COMING UP] LAETITIA:
    It was very hard saying good-bye to my parents. FATHER:
    Don’t cry. LANCE:
    Tonight, after work, we’ve got a game. We have a four-on-four football league. GARRETT:
    This non-contact [bleep] doesn’t do it for me. [COMMERCIAL BREAK] [Exterior shot-Day] [Back to Laetitia in Paris…] LAETITIA:
    I really had a great time visiting Paris and my family. It was really good to see them, you know,
    since they left. But it was time to go back to New York, and
    I told my parents that I wasn’t going to accept Richard’s offer. They were disappointed but, you know, I told
    them about the job at FXCM, and they think that it’s, you know, it’s a better fit for
    me. MOTHER:
    (speaks French) Bon voyage. FATHER:
    (speaks French) Bon voyage. [speaks French] We miss you already. LAETITIA:
    It was very hard saying good-bye to my parents. It’s always hard. It was a hard decision to make. [speaking French] FATHER:
    Don’t cry. [Cut to Laetitia in a taxi] [Sequence of shots] LAETITIA:
    I really love Paris. Every time I leave, I have this little stinging
    feeling in my heart, but I’m really excited about starting out at FXCM. I don’t really know what it’s gonna entail. It’s something completely new to me. But I just feel like I like New York better
    and that’s just where I belong at this point in my career. [Exterior sequence of shots] [Back to Brett in the Dominican Republic…] BRETT:
    It’s nice to get out here in the Dominican Republic, just to, to get away from the city
    a little bit. It’s nice to be able to do business but, you
    know, take a deep breath, let it all out, drop your shoulders. In this type of an industry, you’re always
    thinking about business. You’re constantly thinking of how you can
    make things better. Sometimes you get so busy, it’s hard to really
    take the time to think about what you can be doing differently. Tomorrow, we’re gonna go meet with the owner
    of the properties and go more into his environment to help make him comfortable, and hope to
    have him see the value of our fund and, uh, look to invest in us. [Back to New York…] [Exterior sequence of shots-Day] [Cut to Lance in the office] LANCE:
    Tonight, after work, we’ve got a game. We have a four-on-four football league, and
    we play the, uh, the team we played in the championship game last year. MALE:
    Lions. Official flag-football game jerseys. LANCE:
    Four-on-four football. It’s more of a speed game. GARRETT:
    My defense, uh, isn’t the very best. It’s not the very best at all. I play rugby as well, so it kinda clashes
    with my schedule. JAMES:
    It’s one of those deals where he quit before we had time to cut him. LANCE:
    Yeah! (laughs) JAMES:
    We come in the next day, he’s like, he’s like, I don’t wanna play anymore. I don’t wanna play anymore, so… GARRETT:
    Let’s play a real man’s game. This non-contact [bleep] doesn’t do it for
    me. [Exterior shot-Night] [Cut to the football game] MALE:
    Team down. Set. Hike! LANCE:
    We played a team called Urban Achievers. And we’ve actually kind of had a rivalry with
    these guys. It’s pretty heated. They’re pretty competitive, we’ve very competitive. We played them three times last year. We won all three games, including the championship
    game. MALE:
    Good job, Jimmy. Good job, baby. JAMES:
    The biggest thing about Wall Street is that, uh, you better know your sports because everything
    is an analogy to some kind of sporting event. LANCE:
    Let’s go! Win this thing. Come on now! [whistle blows] We need one more stop. We get the ball back, we score. That’d be a wrap. We need one more stop. MALE:
    Yeah, Bob, go! Go, Bobby! [whistle blows] MALE:
    Ah, jeez. MALE:
    They got a touchdown on the last play. They’re actually going for two points, so
    if they score it, they win it. MALE:
    Oh, yeah! [whistle blows] Yeah! LANCE:
    I’m not good at losing at anything. It doesn’t matter if we were gonna sit here
    and play Pick-up Sticks, you know, and if I lose, I’m pretty sour about it for at least
    a couple days, and especially losing to those guys. I didn’t take it very well. I pretty much pouted the whole way home. JAMES:
    It’s been a rough week. [Exterior sequence of shots-Night-Time lapse] [Fade to black] [CLOSING CREDITS SEQUENCE] LARRY:
    Did they get this light? Uh, I think I did. Make-up. We need make-up. GARRETT:
    Steve just invested in a new headset there. STEVE:
    You’re gonna get more dollars than you would if you had one hand holding the phone. GARRETT:
    I put it on my shoulder. MALE:
    I got two words for you guys, two words. GARRETT:
    I think it’s [bleep]. MALE:
    Jerry McGuire. That’s all you need to know, man. He had the headset and that guy is good as
    gold, man. STEVE:
    You can walk away when it gets too loud in here. And I could do it from across the room, you
    know? MALE:
    Plus you can go to the bathroom.

    I Spent 1 Day Collecting Cans & Bottles For Money
    Articles, Blog

    I Spent 1 Day Collecting Cans & Bottles For Money

    September 29, 2019


    – Hey what is going on you guys? Welcome back to the channel. I got my friends in the background here. We are shooting a video today. And what we’re going to be doing, I’ve been trying these
    different money making ideas. Some of them are good, some of them are not good. But it seems like you guys really enjoyed them. Like I did one completing online surveys, or like trying random money making apps. So today I’m going to be spending the day collecting bottles and cans off the street, or wherever I can find them, and then we’ll cash it out at the end of the day and see how much money you can actually make collecting cans and bottles. So if you guys like this style of video where I’m documenting different money making strategies in real life, go ahead and drop a like on this video just so I know. And if you have an idea
    for a future video, leave me a comment down below. But I hope you guys enjoy this one. I’ve got some seltzer bottles in here that we’ll start out with. Um, yeah, you know you just gotta find cans and bottles
    wherever they may be. So I’ve only got two in here, but we started off with $0.10 on the day so we’ll see where else we can find some cans and bottles. So Jake let me just get
    your prediction here, how much money do you think we’re gonna come up with by the end of the day? – I’d say about six bucks. – Six bucks. – Rob, what do you think? – 50 cents. – 50 cents? We already have $0.15 so that’s only like $0.35 more. – $0.40. – You think $0.40, okay. My prediction personally, and what we’re gonna do is well whatever we make in cans, that’s how much we can spend on dinner. That’s the other, I don’t think I told you guys that, but yeah that’s part of it too. – 20 dollars – 20 dollars, well I think
    we’re going to end up with like two trash bags maybe a trash
    bag and a half full, and that’s probably going to get us like
    seven or eight bucks, we’ll be hitting the dollar menu
    at like Wendy’s probably. So to add to the video, since
    we may be possibly, you know walking in road ways and whatnot
    to find cans, we decided to pick up some hard hats and
    vest, just to have that high visibility so we’re going to be assembling these now and putting them on. Feeling pretty ridiculous
    right now to be honest with you, I didn’t realize how dumb you would feel, wearing a
    construction hat and vest, but – [Jake] This, this says a lot
    about construction workers. – Well, I guess I feel I have
    a sense I feel very I feel like I have a sense of
    authority like I could stop cars or like measure things, but we’ve got a potential for some
    cans here maybe in the ditch so like we’re going to go check
    out the ditch. Jake I think I’ll have you go in if you
    don’t mind, and scope it out for us. – [Jake] I see something back there too. – Really, all right we’ve
    got our first can, we’ve got we’ve got a bottle all right
    can you grab this can for us? – [Jake] I’m going to grab the can – We’ve got our first actual
    can [Jake] Oh God it’s like – Is it full, uh this is
    going to be disgusting. – [Jake] I really hope that’s
    whatever the drink is and not – That’s really a good point,
    either way, five cents. – [Jake] Got it – And then we got a
    water bottle over here. – [Jake] All right, so this
    one we’re going to be a little careful with, because the
    label’s falling off so… – Yeah we should be able to
    return it as long as the label is still on there. – [Jake]
    Right, so we need to keep those labels in tact. In my
    experience of ah my younger days I know that I would definitely be over – Over in the baseball
    field if you were drinking? – [Jake] Yeah, I’d be over on
    that picnic table over there that way so my dad couldn’t find me. – All right let’s go scope
    it out, take a look oh yeah that picnic table looks like
    it’s got some potential. We’ve got some bottles here,
    bit of a treacherous location you always want to watch
    out for these occupational hazards when you’re the work
    place, but yeah we got a Powerade bottle. This is old, wonder if they’ll
    be able to accept these and we got a Gatorade bottle so,
    pretty good pretty good find – oh that thing’s leaking – [Jake] Oh man, it’s
    Diet Cola. – Diet Cola – Uncrush it a little bit –
    [Jake] Yeah let’s try that Do that a little bit, man
    I don’t know – I don’t know – [Jake] I’ve never even seen
    that can before in my life. – Probably from before our time – Right – All right so it’s been like
    40 minutes since our last discovery, but we’ve just
    found a water bottle so so far I think we have maybe
    eight, or nine, maybe ten so we really got to step these
    numbers up if we’re actually trying to have like anywhere
    near a decent meal tonight. – [Jake] I’m starving – But
    yeah we got like maybe maybe ten at most bottles and cans
    so far, I think we need a new location what do you guys
    think? – [Jake] Absolutely – Think we need a new location? We just pulled in we already
    see like seven or eight cans just from like just the visuals
    so this is this is going to be a gold mine. – [Jake] Found one in the car – Yeah we actually did we
    found one while we were driving down, there’s a WD-40 can
    that’s the wrong kind of can. We were driving by and we just
    pulled over the car and just grabbed a can so, it’s probably
    not the safest thing but it seemed all right. There’s like four cans back
    here by this nasty port a john. – [Jake] It’s a candom – Ewe
    just get the just get the cans and leave the – [Jake] Do
    not pick up the condom? – No that doesn’t there’s no refund
    on that. – [Jake] You sure? – Yeah, I’m pretty sure This is, this is the, this
    is the gold mine there’s like this is full of cans there’s
    like nine cans in here. I mean, we’re going to have to take
    these cans. – [Jake] Oh yeah baby – We alr, we’re going to
    have a full bag already. I don’t want to dig through
    it, this appears to be recyclable, yep five cent
    deposit five cent deposit gold mine dude gold mine – Did you ever think you’d
    be picking cans out the trash Jake – [Jake] Uh, I mean not
    for actual currency. – Just a couple of boys, out
    here collecting some cans average Saturday afternoon So if you look closely we’re
    coming up on a couple of oh it’s actually just one
    big boy, it’s a big Bud light – [Jake] It’s a tall boy – It’s a tall boy That’s a 24 ounce, that’s a big beer we’re actually doing all
    right now, I think we got like maybe, maybe we’re up to a buck. – [Jake] All right you’ve
    got to be really quiet sneaking up over here on a
    can and it’s natural habitat up to covert. Yeah he’s full – He’s full you’ve scared the juices right out of him All right let’s cross and
    check out the boat launch so I think I think we’ll do
    well at the boat launch. I’m going to throw you this
    can all right or this bottle. Absolute gold mine here, this
    guy probably had like a 12 pack of PBR. This is really getting to be
    like – [Jake] I don’t want to dig too far. – Yeah I’ll grab what’s on the surface – [Jake] Look like an owl’s
    pellet in there or something – What is that? Oh that’s
    just not right. I’m just going to grab what’s on the surface
    here then I’m going to go wash my hands cause this is
    getting pretty gross, but how can you turn down these easy ones. Oh my God is this, there’s a
    bag full of, full of Miller Lite cans at the bottom,
    oh nah it’s just too gross. It’s getting gross. Who’s going after it? – [Jake] If it was a little
    warmer I think I’d jump in – 15 bucks for the can? – Ryan and I will both
    give you 15 dollars each. – [Ryan] No cause then we’d
    have to end the video and go home cause you’re going to be freezing. – [Jake] We’re uh, we’re
    probably a little over half way full. – [Ryan] All right so as the
    day has been going on here we’ve gotten lazier and lazier
    and now we’re attempting to find cans by drive by so
    we’re in this parking lot where people often are tailgating
    so we’re hoping to find some ah, find some cans and
    bottles but maybe they do a pretty good job cleaning
    this up cause I’m not seeing any yet, but ah we’ll check it
    out we’ll go around the whole parking lot. Did you ever think this
    what you’d be doing at 24? – Um, no – [Ryan] Get him, get in
    there is that a double? – [Jake] Found it – [Ryan] All right so we are
    deep in the woods now, but we just hit the mother load,
    there’s probably like seven or eight cans scattered
    about here so this is like this is like the jackpot
    of a of a bottle and can collector this is like this
    is what you’re looking for this is what it’s all about
    right here, this is money Money just growing on trees
    and the forest. Go to concert venues a lot of blue cups too,
    but lots of lots of cans and bottles, we almost got two
    full bags here dude, oh another one – [Jake] Something
    definitely died down here – [Ryan] You just getting
    a whiff of that too? – [Jake] Yeah it smells like,
    yeah like something died – [Ryan] Let me just go
    down and get those two water bottles and then, actually no
    it smells really bad down here oh my god it smells
    horrible down here, oh that that was not beer, that can,
    that was not beer in that can that was something else I
    dropped it, yep that’s good that’s good all right guys so we’ve got
    two bags of cans, I would say we probably have close to
    like maybe 75 to 100 and they smell so bad to we’re going to
    cash them out see what we got – [Jake] This is the one, this
    is the one that smells like literally death. – [Ryan] All right so our
    first slip here is for 30 cents second slip is for five
    cents so we’re up to 35 cents the big one here a dollar
    fifty-five so that puts us at a dollar ninety and then we
    have a 55 cent slip which puts us at 245 and a 25 cent
    slip so we have altogether two dollars and 70 cents from
    an entire day of collecting cans and bottles um, the guy
    was very nice and let us wash our hands because we must’ve
    picked up cans that had a dead animal in them or near them
    because they was, it was disgusting put it that way. Let’s go see what you know
    two dollars and 70 cents can buy us here for some dinner. Even cheaper – [Jake] That’s if you’re
    a price shopper per se – [Ryan] Well I’m a price shopper per se – [Jake] Do you have the, you
    have the thing, you have the – [Ryan] Well yeah, well they
    probably could just use the store card. – [Jake] Which Flav? – [Ryan] Blackberry, raspberry blackberry – [Jake] I’m down with that – [Ryan] So that’s 70 cents
    this was a dollar 19 so that’s two bucks, we
    got like 60 cents left. – [Jake] 60 cents? – [Ryan] No – [Jake] You know you’ve
    got to open those slow ah man – [Ryan] Did you get
    that on video at least? – Nah, I got like the tail end – [Ryan] Ah dammit it’s
    one of those sweet and salt one with everything else – [Jake] Oh God – All right well we did it – [Ryan] Mm, just spilled
    this all over myself so we ended up spending exactly
    two dollars and 70 cents I don’t know how we even
    managed that, but we spent 270 um I got a, we got a seltzer
    and we got a large kit kat and I spilled majority of
    the seltzer all over myself just now. – [Jake] It’s so crazy how
    that just like worked out like that. – [Ryan] Exactly 270, but all in all not a great way to make money at all I would say in
    fact a really bad way to make money, but I mean I guess we
    cleaned up the environment and got some cans out of the
    woods, but other than that this is not something I would
    recommend anybody. With that being said that wraps up this
    video if you guys have anymore money making ideas drop
    them in the comments below Jake thanks for coming
    on, I’ll have you on again and see you guys in the next video.

    Articles

    I Spent 1 Day Collecting Cans & Bottles For Money

    September 29, 2019


    – Hey what is going on you guys? Welcome back to the channel. I got my friends in the background here. We are shooting a video today. And what we’re going to be doing, I’ve been trying these
    different money making ideas. Some of them are good, some of them are not good. But it seems like you guys really enjoyed them. Like I did one completing online surveys, or like trying random money making apps. So today I’m going to be spending the day collecting bottles and cans off the street, or wherever I can find them, and then we’ll cash it out at the end of the day and see how much money you can actually make collecting cans and bottles. So if you guys like this style of video where I’m documenting different money making strategies in real life, go ahead and drop a like on this video just so I know. And if you have an idea
    for a future video, leave me a comment down below. But I hope you guys enjoy this one. I’ve got some seltzer bottles in here that we’ll start out with. Um, yeah, you know you just gotta find cans and bottles
    wherever they may be. So I’ve only got two in here, but we started off with $0.10 on the day so we’ll see where else we can find some cans and bottles. So Jake let me just get
    your prediction here, how much money do you think we’re gonna come up with by the end of the day? – I’d say about six bucks. – Six bucks. – Rob, what do you think? – 50 cents. – 50 cents? We already have $0.15 so that’s only like $0.35 more. – $0.40. – You think $0.40, okay. My prediction personally, and what we’re gonna do is well whatever we make in cans, that’s how much we can spend on dinner. That’s the other, I don’t think I told you guys that, but yeah that’s part of it too. – 20 dollars – 20 dollars, well I think
    we’re going to end up with like two trash bags maybe a trash
    bag and a half full, and that’s probably going to get us like
    seven or eight bucks, we’ll be hitting the dollar menu
    at like Wendy’s probably. So to add to the video, since
    we may be possibly, you know walking in road ways and whatnot
    to find cans, we decided to pick up some hard hats and
    vest, just to have that high visibility so we’re going to be assembling these now and putting them on. Feeling pretty ridiculous
    right now to be honest with you, I didn’t realize how dumb you would feel, wearing a
    construction hat and vest, but – [Jake] This, this says a lot
    about construction workers. – Well, I guess I feel I have
    a sense I feel very I feel like I have a sense of
    authority like I could stop cars or like measure things, but we’ve got a potential for some
    cans here maybe in the ditch so like we’re going to go check
    out the ditch. Jake I think I’ll have you go in if you
    don’t mind, and scope it out for us. – [Jake] I see something back there too. – Really, all right we’ve
    got our first can, we’ve got we’ve got a bottle all right
    can you grab this can for us? – [Jake] I’m going to grab the can – We’ve got our first actual
    can [Jake] Oh God it’s like – Is it full, uh this is
    going to be disgusting. – [Jake] I really hope that’s
    whatever the drink is and not – That’s really a good point,
    either way, five cents. – [Jake] Got it – And then we got a
    water bottle over here. – [Jake] All right, so this
    one we’re going to be a little careful with, because the
    label’s falling off so… – Yeah we should be able to
    return it as long as the label is still on there. – [Jake]
    Right, so we need to keep those labels in tact. In my
    experience of ah my younger days I know that I would definitely be over – Over in the baseball
    field if you were drinking? – [Jake] Yeah, I’d be over on
    that picnic table over there that way so my dad couldn’t find me. – All right let’s go scope
    it out, take a look oh yeah that picnic table looks like
    it’s got some potential. We’ve got some bottles here,
    bit of a treacherous location you always want to watch
    out for these occupational hazards when you’re the work
    place, but yeah we got a Powerade bottle. This is old, wonder if they’ll
    be able to accept these and we got a Gatorade bottle so,
    pretty good pretty good find – oh that thing’s leaking – [Jake] Oh man, it’s
    Diet Cola. – Diet Cola – Uncrush it a little bit –
    [Jake] Yeah let’s try that Do that a little bit, man
    I don’t know – I don’t know – [Jake] I’ve never even seen
    that can before in my life. – Probably from before our time – Right – All right so it’s been like
    40 minutes since our last discovery, but we’ve just
    found a water bottle so so far I think we have maybe
    eight, or nine, maybe ten so we really got to step these
    numbers up if we’re actually trying to have like anywhere
    near a decent meal tonight. – [Jake] I’m starving – But
    yeah we got like maybe maybe ten at most bottles and cans
    so far, I think we need a new location what do you guys
    think? – [Jake] Absolutely – Think we need a new location? We just pulled in we already
    see like seven or eight cans just from like just the visuals
    so this is this is going to be a gold mine. – [Jake] Found one in the car – Yeah we actually did we
    found one while we were driving down, there’s a WD-40 can
    that’s the wrong kind of can. We were driving by and we just
    pulled over the car and just grabbed a can so, it’s probably
    not the safest thing but it seemed all right. There’s like four cans back
    here by this nasty port a john. – [Jake] It’s a candom – Ewe
    just get the just get the cans and leave the – [Jake] Do
    not pick up the condom? – No that doesn’t there’s no refund
    on that. – [Jake] You sure? – Yeah, I’m pretty sure This is, this is the, this
    is the gold mine there’s like this is full of cans there’s
    like nine cans in here. I mean, we’re going to have to take
    these cans. – [Jake] Oh yeah baby – We alr, we’re going to
    have a full bag already. I don’t want to dig through
    it, this appears to be recyclable, yep five cent
    deposit five cent deposit gold mine dude gold mine – Did you ever think you’d
    be picking cans out the trash Jake – [Jake] Uh, I mean not
    for actual currency. – Just a couple of boys, out
    here collecting some cans average Saturday afternoon So if you look closely we’re
    coming up on a couple of oh it’s actually just one
    big boy, it’s a big Bud light – [Jake] It’s a tall boy – It’s a tall boy That’s a 24 ounce, that’s a big beer we’re actually doing all
    right now, I think we got like maybe, maybe we’re up to a buck. – [Jake] All right you’ve
    got to be really quiet sneaking up over here on a
    can and it’s natural habitat up to covert. Yeah he’s full – He’s full you’ve scared the juices right out of him All right let’s cross and
    check out the boat launch so I think I think we’ll do
    well at the boat launch. I’m going to throw you this
    can all right or this bottle. Absolute gold mine here, this
    guy probably had like a 12 pack of PBR. This is really getting to be
    like – [Jake] I don’t want to dig too far. – Yeah I’ll grab what’s on the surface – [Jake] Look like an owl’s
    pellet in there or something – What is that? Oh that’s
    just not right. I’m just going to grab what’s on the surface
    here then I’m going to go wash my hands cause this is
    getting pretty gross, but how can you turn down these easy ones. Oh my God is this, there’s a
    bag full of, full of Miller Lite cans at the bottom,
    oh nah it’s just too gross. It’s getting gross. Who’s going after it? – [Jake] If it was a little
    warmer I think I’d jump in – 15 bucks for the can? – Ryan and I will both
    give you 15 dollars each. – [Ryan] No cause then we’d
    have to end the video and go home cause you’re going to be freezing. – [Jake] We’re uh, we’re
    probably a little over half way full. – [Ryan] All right so as the
    day has been going on here we’ve gotten lazier and lazier
    and now we’re attempting to find cans by drive by so
    we’re in this parking lot where people often are tailgating
    so we’re hoping to find some ah, find some cans and
    bottles but maybe they do a pretty good job cleaning
    this up cause I’m not seeing any yet, but ah we’ll check it
    out we’ll go around the whole parking lot. Did you ever think this
    what you’d be doing at 24? – Um, no – [Ryan] Get him, get in
    there is that a double? – [Jake] Found it – [Ryan] All right so we are
    deep in the woods now, but we just hit the mother load,
    there’s probably like seven or eight cans scattered
    about here so this is like this is like the jackpot
    of a of a bottle and can collector this is like this
    is what you’re looking for this is what it’s all about
    right here, this is money Money just growing on trees
    and the forest. Go to concert venues a lot of blue cups too,
    but lots of lots of cans and bottles, we almost got two
    full bags here dude, oh another one – [Jake] Something
    definitely died down here – [Ryan] You just getting
    a whiff of that too? – [Jake] Yeah it smells like,
    yeah like something died – [Ryan] Let me just go
    down and get those two water bottles and then, actually no
    it smells really bad down here oh my god it smells
    horrible down here, oh that that was not beer, that can,
    that was not beer in that can that was something else I
    dropped it, yep that’s good that’s good all right guys so we’ve got
    two bags of cans, I would say we probably have close to
    like maybe 75 to 100 and they smell so bad to we’re going to
    cash them out see what we got – [Jake] This is the one, this
    is the one that smells like literally death. – [Ryan] All right so our
    first slip here is for 30 cents second slip is for five
    cents so we’re up to 35 cents the big one here a dollar
    fifty-five so that puts us at a dollar ninety and then we
    have a 55 cent slip which puts us at 245 and a 25 cent
    slip so we have altogether two dollars and 70 cents from
    an entire day of collecting cans and bottles um, the guy
    was very nice and let us wash our hands because we must’ve
    picked up cans that had a dead animal in them or near them
    because they was, it was disgusting put it that way. Let’s go see what you know
    two dollars and 70 cents can buy us here for some dinner. Even cheaper – [Jake] That’s if you’re
    a price shopper per se – [Ryan] Well I’m a price shopper per se – [Jake] Do you have the, you
    have the thing, you have the – [Ryan] Well yeah, well they
    probably could just use the store card. – [Jake] Which Flav? – [Ryan] Blackberry, raspberry blackberry – [Jake] I’m down with that – [Ryan] So that’s 70 cents
    this was a dollar 19 so that’s two bucks, we
    got like 60 cents left. – [Jake] 60 cents? – [Ryan] No – [Jake] You know you’ve
    got to open those slow ah man – [Ryan] Did you get
    that on video at least? – Nah, I got like the tail end – [Ryan] Ah dammit it’s
    one of those sweet and salt one with everything else – [Jake] Oh God – All right well we did it – [Ryan] Mm, just spilled
    this all over myself so we ended up spending exactly
    two dollars and 70 cents I don’t know how we even
    managed that, but we spent 270 um I got a, we got a seltzer
    and we got a large kit kat and I spilled majority of
    the seltzer all over myself just now. – [Jake] It’s so crazy how
    that just like worked out like that. – [Ryan] Exactly 270, but all in all not a great way to make money at all I would say in
    fact a really bad way to make money, but I mean I guess we
    cleaned up the environment and got some cans out of the
    woods, but other than that this is not something I would
    recommend anybody. With that being said that wraps up this
    video if you guys have anymore money making ideas drop
    them in the comments below Jake thanks for coming
    on, I’ll have you on again and see you guys in the next video.

    YOUR MONEY OR YOUR LIFE SUMMARY (BY VICKI ROBIN)
    Articles, Blog

    YOUR MONEY OR YOUR LIFE SUMMARY (BY VICKI ROBIN)

    September 25, 2019


    Alarm goes off at 7:00 in the morning. Check phone. Shower. Dress in professional uniform. Breakfast, if there’s time for it. Hop in the car and prepare for rush hour. Work from 9-5. Deal with the boss. Deal with a seemingly endless stream of emails. Deal with the intern who you’re trying to delegate work to, but always end up doing yourself. Hide mistakes, act busy, smile when you are handed near-impossible deadlines, argue with your consciousness but agree with your boss, watch the clock, smile again. 5 o’clock. Back to your car for the evening commute. Home again. Try to act human with your partner. Cook. Eat. Watch an episode on Netflix. Or two – after all, you’ve had a rough day. Answer one last e-mail and then, finally, bed-time. Eight hours of sacred oblivion, if you’re lucky.
    Do you recognize yourself? People living this life is not making a living, If someone points a gun to your head and asks, “your money or your life?” you know that you’d instantly give up your wallet. Yet, This is how many people live. Whether intentionally or unintentionally, they are valuing their money higher than their life. This summary will teach you to think differently about money, which in turn will lead to a point where you no longer must choose. So the next time someone asks you: “Your money or your life?!”, you’ll be able to say “I’ll take both, thank you” Takeaway number 1: Decide your own enough This is the starting point. Enough is not too much, not too little, but just right. If you don’t learn about your enough, you’ll never be satisfied because more is a battle with an endless horizon. An interesting experiment made in the 1980s supports this theory. Participants from every income bracket were asked to rate their happiness on a one to five scale. Moreover, they were asked about how much money that would make them happy. The results? There was no significant difference between the top and bottom earnest on the happiness scale. Additionally, they all had similar answers to how much money that would make them happy. They all stated: “50% more than what I earned today” Researchers, who have investigated the subject of money versus happiness have concluded that beyond a certain level of sufficiency more money does not equal more happiness. Currently this level is believed to be around $75,000 a year. Consider the so called “fulfillment curve”. The graph correlates money spent to the fulfillment we feel from it. Before survival is secured, every penny seems to be shooting our satisfaction and fulfillment through the roof. Even when adding comfort and a few luxuries, fulfillment is increasing. It is important to notice when the curve starts to level out though. If you have ten suits, but you rarely use any of them, you are probably enjoying shopping more than having and using. Most likely, you have ended up in the negative slope of the money fulfillment equation, where each additional new purchase only adds distress and distraction rather than satisfaction. It’s important to notice when this starts to happen! At the top of the curve is the point of “enough”, and even though the amount of money that must be spent before reaching it differs from person to person, everyone has such a point. Remember that most of our needs up to a certain port can’t be filled by new toys. People don’t need new Lamborghinis. They need respect. They don’t need a wardrobe filled with clothes from Dior, Gucci and Prada. They need to feel attractive. Neither do they need the most recent entertainment system, they need something worthwhile to do with their time. Takeaway number 2: Compare your lifetime income to your net worth. It’s time to make peace with the past. This exercise isn’t about increasing your ego or depleting your confidence. It’s about reviewing your earnings and spending habits of the past. Just remember: No shame and no blame. There are two parts: 1. Find out how much you’ve earned in total. This might seem like a Herculean task, I know, but there are a few tricks to make it simpler than it seems at a glance. A. Get online records from your bank. B. Review your old resume. C. Apply for a Social Security Statement from the Social Security Administration, if you are an American. 2. Calculate your net worth. Your net worth is simply the sum of liquid and fixed assets minus your debt. Liquid assets could be: Cash, money in savings accounts, bonds, stocks, mutual or index funds. Fixed assets are major possessions such as your house car or boat, but let’s not forget about electronics, furniture, wardrobe, jewelry and the items you store in the attic. Remember to use the current market values for all asset and loans. This means what you can sell or pay them back for today. Why should you do this? Because it’s a great way of reassessing your prior financial choices. Many persons live their financial lives without direction or consciousness. They are like someone driving around without a destination, spinning their wheels and burning gas, but they’re not getting anywhere! This step gives you the opportunity to take conscious decisions about the future of your financial situation. Maybe you realize that you haven’t got too much to show for in assets compared to your lifetime earnings. Good! Then use this as a motivation for turning that trend around. Or, on the other hand, maybe you realize that you have enough assets, so that if you distribute them correctly, you can be financially independent immediately. Even better! Takeaway number 3: Calculate your true hourly wage. I’m going to give you a moment to think about the following question: What is work? According to the late economist Robert Theobald: Work is defined as something that people do not want to do and money as the reward that compensates for the unpleasantness of work. Maybe your definition of work isn’t as depressive as this one, but consider these various purposes that work can be, and think about which ones that applies to yours. Work is …. Earning money. A sense of security. Tradition – everyone works! Service – to contribute to society and the world. Learning – acquiring new useful skills, be stimulated and challenged. Power – influencing other people Socializing – feeling like a part of a larger community and enjoying connecting with others. Time structuring – give order and rhythm to life. How many of these applies to your job? The important point to notice here is that work has two separate functions: a financial function and a personal function. Paid work (which people usually refers to as work) on the other hand, only have one: Getting paid Why? Because all the personal functions listed here are equally available in unpaid work activities! We have to high expectations on our paid employment when we think that it’s going to bring us all of these! This is supported by the fact that, according to a 2014 report, only 43% of Americans said that they like the jobs. With this in mind it does make a lot of sense to maximize how much money you get from each hour you spend at your paid work, as other activities are equally good, if not better, as personal functions. You do this, not out of greed or competition, but out of self-respect and appreciation for life. The median yearly wage for the Swedish population is approximately $30,000. Let’s say that people work, on average, 40 hours a week, 45 weeks a year. This includes five weeks of paid vacation plus additional days off, such as Christmas Eve. Some people would say that the hourly wage for the median Swede is therefore 30,000 divided by 40 times 45, which is equal to $16.5, but this estimate is too generous. What about all the outer activities that you wouldn’t have done if it wasn’t for work? They often cost both money and time. Let’s include a couple of those as well. Commuting: Going to your job back and forth every day. Let’s say that this is another five hours of work each week at cost of $80. Costuming: If the clothes that you wear to your job isn’t the type that you’d normally use, this must be included too. One hour and $15 per week. Decompression: Do you feel full of energy when you come home or do you just want to sink into the sofa with a beer? Five hours and $20 per week. And let’s not forget about, food, escape entertainment, timeout vacations, job-related illness and other expenses such as babysitting and similar. When we add these hours to working hours and subtract the cost from yearly income, we find that the median Swede is earning … $6.1 per hour. And this is pre-tax even! After taxes, it would be even lower, around $4.5. With this number in mind, we can move on to the next takeaway … Takeaway number 4: Money isn’t dollars, euros, or Swedish Crowns even, its life energy. After this, there is no turning back. You take the blue pill, the story ends, you wake up in your bed and believe whatever you want to believe. You take the red pill – you stay in Wonderland, and I show you how deep the rabbit-hole goes. Remember all I’m offering is the truth, nothing more. You one and only asset, and the only true currency is your life energy. This is also a currency that you can never get back. As you are trading your hours for money every day at your job, you Can easily calculate how much each of your expenses costs in the form of life energy. For instance, if you earn $4.5 per hour, as in our previous example, here’s how much a few items truly costs. A brand-new Volvo v60: 772 working days! Your Spotify account: 1/4 of a working day per month. A night at the club: 2 working days. A restaurant visit: 1 working day. Track your expenses over a month to see where you spend your life energy. Also, ask these three questions about every expense: 1. Did I receive fulfillment, satisfaction and value in proportion to life energy spent? 2. Is this expenditure of life energy in alignment with my values and life purpose? 3. How might this expenditure change if I didn’t have to work for money? Mark each of the questions with a plus, an OK, or a minus. Or plus, 0, minus in the case of the third question. This is a very important step! Do you see any patterns? Perhaps you realize that you spend too much energy trying to impress others with expensive luxuries or too much energy on impulse shopping. Or that you spend too little energy on your relationships and keeping yourself in shape. No matter which conclusion you draw, It’s a powerful tool to see each expense as you depleting your only non-refundable asset. Takeaway number 5: Create a wall chart of income and expenses. Now that we realize that paid work and expenses are life energy consumed, It’s time we find a way to conserve this one important asset. Tracking your income and expenses each month is the starting point on this journey. Put up a large piece of paper on a wall where you can see it daily. Along the x-axis, you track months, and along the y-axis you track dollars earned/ dollar spent. Plot, for each month, your income and expenses. Use different colors for the two categories. Connect each month with a line. There are 2 keys to making this process work for you: 1. Start 2. Keep going It is common wisdom that a journey of a thousand miles starts with a single step. What we don’t hear as often though, is that you only arrive at your destination, if your first step is followed by hundreds of thousands of additional small steps. Getting it past the three month mark with this chart method most often results in people naturally and painlessly dropping their expenses by about 20%. Awww The Swedish Investor, my income is never higher than my expenses because I have so many unforeseen expenses! This is the common problem. One month’s tax payment, is another month’s insurance payment, is another months “I just got myself a brand-new Volvo!” You must realize that these expenses are nothing unusual. With that said, always try to minimize them. For the sake of your wall chart, you may choose to split the lager extraordinary expenses over 12 months. What’s important about this chart is that it will increase the gap between income and expenses for you naturally. That is, it will increase your savings. Before you started to think about financial independence, this gap would have meant more spending money. We are now going to introduce what it is to a person who cares about his or her personal finance. Its capital. Capital is money that makes money. This will introduce a new line on your wall chart: Investment Income. This income can come from sources such as: Interest – which is periodical payments from, for instance bonds or savings accounts. Dividends – which is a share of profits for owners of companies. Capital gains – which is the difference between the procurement price and the selling price of an asset. Rents – which is cash for owning and leasing real estate. Royalties – which is payments to owners of intellectual property, franchises, natural properties, and so on. The important part is that if you keep that gap between income and expenses, your capital will increase, and so will your investment income! Investment income is wonderful in that it will put money in your pocket without you having to trade your life energy for it. Therefore, once your monthly investment income equals your monthly expenses, you no longer need to work for money. This point is called the “crossover point”. You are then officially financially independent. I hope you see now that with a chart like this, work won’t just be “another day, another dollar”. Rather, It will change into “another day, one step closer to financial freedom.” Repetition is key. So let’s go over the takeaways one more time. Advice number 1 is that you must escape the endless race of more and decide when you’ve had enough. Enough differs from person to person, but we all have such a point. Takeaway number 2 is to make peace with the past by recognizing your spending habits from your earlier life. To do this, compare your net worth with the total amount of money that you’ve ever earned. In takeaway number 3, we talked about how you can decide your true hourly salary, and that paid work should be focused around maximizing this number. Number 4 is probably the most important takeaway in the book. And that is that money is life energy. Every expense that you have is depleting this energy. Finally takeaway number 5 is that you should create a wall chart and start tracking your income and expenses monthly. Done right, this will increase your gap between income and expenses, which will allow you to generate more investment income. Investment income is what will make it possible for you to answer: “I’ll take both, thank you” when someone asks you “your money or your life?!” Thanks for watching!

    Articles

    RICH DAD POOR DAD SUMMARY (BY ROBERT KIYOSAKI)

    September 19, 2019


    Does working long hours for little money, clinging to the illusion of job security and looking forward to a three-week vacation each year and perhaps a shitty pensions after 45 years of hard work sounds tempting to you? Yes? In that case you don’t need this summary. For everyone else. Let’s dive in! Takeaway number 1: Rich people buy assets, poor people buy liabilities that they think are assets. My house is my greatest investment! My house is a liability, if your house is your greatest investment, you have problems. If you want to be rich this is the main thing that you need to know. It’s that simple. I know that you’re shouting towards the screen right now in disbelief: Well, why aren’t everyone rich then? The equally simple answer is because people in general don’t know what an asset is. Let’s do a little test. Is you recently bought iPhone an asset? It isn’t. Is your BMW an asset? Nope, definitely not. Is owning a part of a company an asset? Yep. Absolutely. It’s your house an asset? It isn’t. Did you get 4/4? In that case, great job, then you probably already know what I’m about to say: An asset is something that puts money in your pocket. A liability is something that takes money out of your pocket. Let’s look at how a rich person acts when making money compared to a poor person. The rich gets their income and straightaway they buy assets. They buy assets such as stocks, bonds and real estate. Now, in the long run, these resources will create even more cash for them in the future. The middle class earns their money from a good job, but the moment they get their salary, they spend it on liabilities which they think are assets. Possessions such as TVs, cars and vacation homes. You might look rich and your friends might admire you for it, but you will never actually be rich practicing this. But isn’t it risky to be in the stock market? What if there’s another financial collapse? It’s funny how people somehow justify buying an expensive car, which is a guaranteed money loss, while they think that buying financial assets is stupid because you might lose money. It’s crazy! Takeaway number 2: The power of corporations. The rich should pay more in taxes to take care of the less fortunate. Taxes punish the productive and support the unproductive. I guess that you’ve all heard the story about Robin Hood, you know the guy who takes from the rich and gives to the poor? Inspired by this tale, the poor and the middle class invented taxes. The purpose is to create a more equal society where everyone is included. The problem is that the rich, they’re too smart for this and in the long run, instead of taking from the rich and giving to the poor, the effect has become more like taking from the middle class and giving to the poor. Rich people are too smart for the system and they find all types of ways and vehicles to protect their hard-earned money. One such vehicle is corporations. Corporations are good for two things primarily. First and foremost, it allows you to pay less tax. The number one expenditure of the average household is taxes. It isn’t uncommon for people to work between January and May for the government. People often pay up to 40-50 percent in taxes. People tax before they get their salary, when buying things and even when they die! Warren Buffett, who’s the third wealthiest man on this planet is famous for paying less tax than his secretary. What a corporation allows you to do, is to pay for expenses before paying taxes. You’re also allowed to deduct VAT from the sales by the same amount as your procurements. This effectively allows you to buy stuff for as low as 50% of the original price. For instance, an expensive dinner together with your girlfriend could be bought through your company and be half as expensive as for those without a company. Naaah, just kidding, don’t do that, that would be illegal, as the dinner has nothing to do with your company. At least if you get caught, don’t blame it on me. I never advised you to do it. The second thing that corporations are good for is to protect yourself from personal lawsuits, which could be devastating for personal finance. With an LLC or an “Aktiebolag” in Swedish, you are protected from such risks and the downside is limited to your company, not your personal wallet. Imagine that you’re a shop owner that is selling boat supplies. A group of Swedish Vikings raids your shop and steals everything. Your oars, your best wood and your super hot secretary. The family of the secretary decides to sue you for being irresponsible. Who in the world would announce free mead outside their shop during times of Viking invasions? You lose in court because of your carelessness, which would force you to file for personal bankruptcy, if you were without a company. In this case though, you had one, and the lawsuit is limited to the company. Takeaway number 3: Stop focus on your income – focus on your assets Study hard, so you can get a good job at a great company. No, study hard so you can find great companies to buy. Robert Kiyosaki’s poor Dad had a PhD, but was always a struggle with money. His rich dad didn’t even finish high school and yet, he had an abundance. His PhD-dad studied so many years just to get a few hundred extra in salary every month. On the other hand, his rich dad used those years to start acquiring assets. The rich focus on their asset column, while everyone else focuses on their income statement. I find this to be an interesting subject. If the average person were to get a pay cut by 2%, he would be furious. On the other hand if he loses 2% in the stock market (which is his assets) he shrugs it off by blaming bad luck or bad asset managers. Yet, for some people, it’s a worse situation to lose 2% of their assets than to lose 2% in salary. Salary levels are taken personal, while asset levels are not. This is a common problem for poor people. Start to take responsibility of your investment decisions! Take away number 4: Don’t diversify with too little money. When it comes to money, just play it safe. No, learn how to manage your risks. There is no reason to diversify your portfolio if you only have a small fortune. If you want to become rich, you must first be focused. Look at the top 5 richest people in the world. These are rankings from 2018 . Jeff Bezos, net worth: 112 billion. Owner of Amazon. Bill Gates, net worth: 90 billion. Owner of Microsoft. Warren Buffett, net worth: 84 billion. Owner of Berkshire Hathaway. Bernard Arnault, net worth: 72 billion. Owner of LVMH. Mark Zuckerberg, net worth 71 billion. Owner of Facebook. Stefan Persson, net worth: 17 billion. Owner of H&M. These people became rich, not by being diversified, but by being focused. Don’t do what the poor and middle-class do, which is to put their few eggs in too many baskets. Instead, focus, and put them in a few ones. If you’re savings are small compares your annual salary, I think this is especially true. Aim to get a yield that will have an impact on your life and go for diversification as soon as you’ve acquired wealth that will be tough to earn back through your daily job. In finance theory, it’s argued that diversification reduces risk, but I would argue that risk is a result of uncertainty, which in turn is the consequence of a lack of knowledge. Stay focused and you will have time to gather more info about each of your investments, and in turn, reduce your risk while keeping a high potential. Takeaway number 5: Educate in personal finance. The love of money is the root of all evil. The lack of money is the root of all evil. Money is a form of power. Even more powerful though, is financial education. Money without financial intelligence is money soon gone. This is the reason why famous people such as 50 cent and Mike Tyson have been filing for bankruptcy, even though they’ve earn big time. One of the reasons why the rich get even richer, the poor get poorer, and the middle class struggles in debt is because the subject of money is taught at home, not in schools. Many of us learn personal finance from our parents. This means that if your parents aren’t rich already, you need to start getting advice from somewhere else on how to do it. There are 4 parts of financial literacy that you should focus on, according to Robert Kiyosaki. Number 1 is accounting. Accounting is the ability to read numbers read – be it numbers from an annual report, or from your personal bank account. Number 2 is investing. This is the science of money making money. Number 3 is understanding the markets. At least, you should understand the basic rules of supply and demand. Number 4 is the law. Understanding the tax advantages and personal protection provided by corporations Don’t be afraid to spend your money on education that will improve your knowledge and develop skills necessary to beat your weaknesses. They author spend many thousands of dollars throughout his life on seminars, books, and so on. And guess what? The returns from these investments are unmatchable! Arrogant people often find this hard to do. They already know everything, and rather talk about what they know than try to learn something new. Listening is more important than talking. If that weren’t true. God would not have given us two ears and only one month. Let’s sum it all up. Takeaway number 1 is that you must buy assets to start generating passive income every month. Takeaway number 2 is that a corporation is a useful vehicle to protect yourself from losses and to be able to pay yourself first, not the government. Number 3 is to start taking responsibility of your own investment decision – they are even more important than your salary. Advice number 4 is that you must invest in a focused manner to grow a large fortune. Finally, number 5 is the advice to start educating yourself in personal finance. Focus on accounting, investing and understanding the markets.

    Articles

    THE RICHEST MAN IN BABYLON SUMMARY (BY GEORGE S CLASON)

    September 16, 2019


    Takeaway number one: pay yourself first. I found the road to wealth when I decided that a part of all I earned was mine to keep .. And so will you. But all I earn is mine to keep, is it not? Far from it. Do you not pay the garment maker? Do you not pay the sandal maker? Do you not pay for the things that you eat? What have you to show for your earnings of the past month? What for the past year? Fool! You pay to everyone but yourself? As well be a slave and work for what your master gives you to each and wear. It’s a powerful analogy to see every expense you have as you slaving for someone else. If your net income is $2,000 per month and you pay, say $1000 bucks in rent, you’re effectively working 20 hours a week for your landlord. Well in Sweden that is at least where a normal working week is about 40 hours. Think of it this way and it will be much easier to handle your cravings for spending. In the book it is suggested that once you get your salary, before any other expenditures – pay yourself one-tenth of that amount. This way you make sure that you always earn money for yourself before slaving for others Takeaway number two: Men of action are favored by the goddess of luck. Most people when seeing other successful persons such as Abba, Zlatan Ibrahimovic or Carl XVI Gustaf, attribute it all to luck. They come up with all kinds of excuses for why they are not in the same position as these aforementioned people, such as well they have talents … they met the right people at the right time … or They were born into it! While this might be the case for some successful people, it’s certainly not for the large majority of them. What just bring them all together though is that they have been taking action. Picture this: A procrastinator and a doer is faced with opportunities. Let’s say, for simplicity, that they are faced with the same amount of opportunities. The chance of succeeding when taking in opportunity can only be manipulated by a small degree, so in this way the procrastinator and the doer have the same chance to thrive. What separates them though is the number of opportunities that they try out. The procrastinator will always come up with excuses. I don’t feel good today … I actually had a rough day at work …. Nope, the stars are not aligned today! Meanwhile, the doer tries it out and takes many of the opportunities given to him. Therefore, the chances that the doer will be lucky and succeed at some point is way higher than that of the procrastinator. But it has nothing to do with luck, and everything to do with action. Takeaway number three: Wealth is not a matter of income. Yesterday how many of the carried lean purses? “All of us”, answer the class Yet thou do not all earn the same. Some earn much more than others. Some have much larger families to support. Yet, all purses were equally lean. Now I will tell thee an unusual truth about men, and sons of men. It is this: That what each of us calls our “necessary expenses” will always grow to equal our income unless we protest to the contrary. I know a lot of smart people that earn good money, yet they have nothing to show for in their bank accounts. Every time they get an increase in salary, they increase their spending with the same amount. They have more Spotify accounts than they have friends, and piles of furniture from IKEA that will never be assembled. Always keeping up with the Joneses. This is foolish in so many ways. Primarily because it’s a huge risk taking, which in turn causes you to be completely handcuffed and tied to your current job. If you don’t get that salary every month what is then going to happen to your boat, your house and your car? Now when your boss tells you to go and clean the toilets for the third time during that afternoon you want to tell him to go ***** himself. But then you think about the boat, the house and the car. And instead you say: Yes, sir. That would be lovely! Right away! No matter who you are or what your degrees is, everyone must obey under the law of income minus expenditures equals savings. No matter if you are an engineer, a Mc Donald’s crew member, or Floyd Mayweather. Takeaway number four: Act when the time is right. If you have done a thorough analysis and asked your friends and family about possible shortcomings in your research, don’t be afraid to act on it. Great opportunities are rare and should never be missed out on. For personal finance and investing, such opportunities sometimes means that you must cut your expenditures a little more than usual. For instance, during the financial crisis and the following collapse of the stock market in 2008 and 2009 such opportunity emerged. For those who were willing to increase their savings and investing during that time – great profits were to come. Takeaway number five: The power of passive income. Once you start to obey under rule number one – pay yourself first – you will accumulate a lot of cash over time. While this will feel good all on its own, there’s something even better to come. As soon as possible you should start to put your hard-earned money to work. The good thing about money is that unlike yourself, it never has to rest. Your money will work for you while you go to class, while you hang out at the gym and even while you’re sleeping. It’s modern-day slavery and best of all, it’s a hundred percent legal. This is what people like to refer to as passive income. If you decide to keep your slaves, they will breed. Even the kids will breed eventually. This will cause your money to grow exponentially. The good thing about exponential’s is that they multiply over time and earning money becomes easier … and easier … and easier …. and easier. To sum it all up: Takeaway number one is to pay yourself first. Takeaway number two is that men of action are more likely to be lucky in the long run. Number three is that wealth is a function where expenses is the most important factor, not income. The fourth advice from the book is to take action when the time is right, and takeaway number five is the power of passive and exponential income.