>>> LADIES AND GENTLEMEN, 
PLEASE SILENT 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 
CHIEF OPERATING OFFICER NED 
DESMOND. 
>>> GOOD MORNING, EVERYONE. 
WE HAVE A VERY SPECIAL PROGRAM 
CALLED THE CUSTOM DISRUPTER 
AWARD. 
WE WORK WITH OUR PARTNERS ON 
THIS AWARD. 
AND THE LUCKY ATTENDEES THAT 
PARTICIPATE, CAN WIN LUCRATIVE 
PRIZES. 
AND THEY GET RECOGNITION IF 
THEY HAPPEN TO WIN A DISRUPTER 
AWARD AT THE END OF THE SHOW. 
THIS YEAR WE HAVE TWO COMPANIES 
THAT ARE PARTICIPATING IN THIS 
PROGRAM, AND I WANT TO GIVE YOU 
QUICK DETAILS ON WHAT THEY ARE 
AFTER AND HOW YOU CAN 
PARTICIPATE. 
FIRST IS PROFIT DOT CO. 
USING OKR AND KPI. 
WINNERS WILL RECEIVE CASH 
REWARDS UP TO $15,000. 
AND THE FIRST PLACE WINNER WILL 
BE RECOGNIZED AND AWARDED AT 
THE CLOSING KEYNOTE AT DISRUPT. 
MEANING ON DAY THREE, FRIDAY. 
YOU CAN VISIT THEIR BOOTH IN 
THE EXPO HALL TO LEARN MORE 
DETAILS. 
IF YOU ARE NOT ALREADY ON TO 
IT. 
THE SECOND IS MAGNA. 
THEY ARE PROUD TO PREVENT 
SOMETHING CALLED FUTURE 
MOBILITY DISRUPTER AWARD. 
THEY WILL GRANT A $10,000 PRIZE 
AND AN OPPORTUNITY TO MEET WITH 
THE R & D INNOVATION TEAM. 
AND THE PRIZE AWARDED AT THE 
END OF DAY THREE JUST BEFORE WE 
ANNOUNCE THE WINNER OF THE 
BATTLEFIELD. 
IF YOU'D LIKE TO LEARN MORE 
ABOUT MAGNA'S PRIZE, YOU FIND 
THEM IN ROOM 208 ON THE SECOND 
FLOOR ON THE SOUTH HALL. 
THANK YOU VERY MUCH. 
>>> LADIES AND GENTLEMEN, 
PLEASE WELCOME TECH CRUNCH 
EDITOR AND CHIEF MATTHEW 
PANZARINO. 
>> HELLO, EVERYONE. 
IT'S WONDERFUL TO SEE SO MANY 
PEOPLE IN THE SEATS THIS 
MORNING. 
IT'S ALWAYS NERVE RACKING 
COMING OUT TO THESE THINGS. 
IT'S A LITTLE EARLY SO WE CREEP 
OUT TO SEE IF THERE IS ANYONE 
IN THE AUDIENCE. 
AND THERE IS. 
WE HAVE A FANTASTIC SHOW OVER 
THE NEXT FEW DAYS. 
WE HAVE 42 SESSIONS JUST TODAY 
ALONE. 
AND WE WILL HAVE SESSIONS OVER 
THE NEXT COUPLE OF DAYS. 
YOU WILL SEE MANY PEOPLE HERE 
ON THE MAIN STAGE. 
BUT WE HAVE THE EXTRA CRUNCH 
STAGE AND Q & A STAGES AS WELL. 
WE FLUSHED ALL THREE OUT WITH 
WHAT WE THINK IS A REALLY CROSS 
SECTION OF CONTENT THAT COVERS 
ALL THE IMPORTANT SECTORS AND 
QUESTIONS AND THINGS THAT YOU 
MIGHT BE LOOKING FOR. 
ABOUT WHAT IS HAPPENING RIGHT 
NOW IN ENTREPRENEURSHIP. 
SO WE HAVE DONE OUR BEST TO 
KIND OF GO HIGH, GO LOW, BRING 
YOU GROUND LEVEL INFORMATION 
THAT IS ACTIONABLE, THAT YOU 
CAN TAKE TO YOUR NEXT MEETING, 
NEXT BUSINESS DECISION. 
DECIDE WHERE YOUR COMPANY WANTS 
TO GO FROM HERE. 
AND WE WANTED TO BRING IN 
PEOPLE THAT HAVE HAD SUCCESS 
AND VIEWING WHAT IT TAKES TO 
BUILD SUCCESSFUL COMPANIES. 
WE'LL TALK TO THEM AS WELL. 
WE WANTED TO MAKE SURE WE BRING 
YOU THIS FULL SPECTRUM ANALYSIS 
OF THE INDUSTRY. 
HOPEFULLY YOU LIKE WHAT WE HAVE 
PROVIDED FOR YOU. 
WE WILL BE TALKING ABOUT SPACE, 
IMMEDIATE Y AND AI. 
JUSTIN GORDON WILL BE HERE. 
RAY DALIO. 
STEVEN CURRY. 
WE HAVE AN AMAZING SELECTION OF 
SPEAKERS ON THE EXTRA CRUNCH 
STAGE AS WELL. 
ONCE AGAIN, BRINGING YOU THOSE 
ACTIONABLE INSIGHTS WHICH IS 
ONE OF OUR BIG AIMS FOR THE 
SHOW. 
WE ARE REALLY GLAD YOU ARE 
HERE. 
WE ALSO, IN ADDITION, HAVE THE 
STARTUP BATTLE FIELD. 
WE HAVE SELECTED A GROUP OF 
COMPANIES THAT WE THINK 
REPRESENT A SECTION OF THE 
HOTTEST, MOST INTERESTING 
SPACES. 
WE'VE BROUGHT THEM TO THE SHOW 
AFTER EXTENSIVE TRAINING. 
WE'LL PUT THEM ON STAGE IN 
FRONT OFEST STEAMED JUDGES AND 
PANELISTS. 
YOU WILL GET TO SEE THEM PITCH 
THEIR HEART OUT. 
YOU WILL GET TO SEE THE JUDGES 
GRILL THEM. 
YOU'LL BE ABLE TO SEE HOW THEY 
REACT TO THAT ON THE FLY. 
AND WE'LL HOLD THE COMPETITION 
OVER TWO DAYS. 
THE FINALISTS WILL BE ANNOUNCED 
AT THE END OF THE SECOND DAY 
AND THEY WILL GO ON STAGE AND 
WE WILL PICK A WINNER ON THE 
LAST DAY. 
THAT IS VERY EXCITING. 
I WOULD LIKE TO PERSONALLY 
THANK THE EVENTS TEAM JUST 
RIGHT NOW. 
THEY HAVE WORKED AROUND THE 
CLOCK. 
MANY SLEEPLESS NIGHTS. 
NOT FIGURATIVE, ACTUAL 
SLEEPLESS NIGHTS GETTING THIS 
READY FOR YOU. 
PLEASE GIVE THEM A HAND. 
[ APPLAUSE ] 
IT'S A BIG UNDER TAKING. 
THANK YOU VERY MUCH FOR BEING 
HERE. 
I'M GOING TO LET US GET ON TO 
THE SHOW. 
IT'S FANTASTIC SET OF 
PROGRAMMING AND I HOPE YOU 
ENJOY IT. 
THANK YOU. 
>>> LADIES AND GENTLEMEN, 
PLEASE WELCOME TECH CRUNCH 
MANAGING EDITOR JORDAN CROOK. 
>> WHAT'S UP, SQUAD? 
HOW ARE WE DOING? 
YEAH THANK YOU TECH CRUNCH. 
APPRECIATE THAT. 
AS THE VOICE OF GOD SAID I'M 
JORDAN CROOK. 
LY BE YOUR HOST FOR THE SHOW. 
YOU MAY KNOW ME FROM PREVIOUS 
DISRUPTS AND LITERALLY NOTHING 
ELSE. 
SO I'M REALLY EXCITED TO BE 
HERE. 
I HOPE YOU GUYS ARE TOO. 
I KNOW YOU ARE ANTSY TO GET 
STARTED WITH THE SHOW. 
I'M GOING TO COVER THE NITTY-
GRITTY HOUSEKEEPING. 
IF YOU WANT TO INTERACT WITH ON 
SOCIAL MEDIA. 
GO TO JORDAN@CROOK. 
WE ARE GOING TO GET ALL KINDS 
OF LAUGHS IN HERE. 
FOR REAL. 
GO TO #TCDISRUPT. 
WE WILL BE WATCHING THAT, 
MONITORING ITS, IF YOU HAVE 
QUESTIONS, CONCERNS, 
COMPLIMENTS. 
WE HAVE AN AMAZING APP THIS 
YEAR. 
AS YOU CAN TELL THERE ARE LIKE, 
40 THINGS GOING ON AT ANY GIVEN 
MOMENT. 
SO THE APP IS GREAT WAY TO 
NAVIGATE THE SHOW. 
CHECK THAT OUT. 
IF YOU ARE AN INVESTOR, A 
FOUNDER AND LOOKING TO MAKE A 
DEAL, GET A CHECK SIGNED, 
SOMETHING LIKE THAT, USE CRUNCH 
MATCH. 
IT MATCH UP INVESTORS AND 
STARTUPS AND LET YOU GUYS KIND 
OF CONNECT IN SPECIAL ROOMS 
THAT WE'VE SET ASIDE. 
AND IF YOU WANT TO CHECK OUT A 
TRANSCRIPT OF THE SHOW, ANY OF 
THE PANELS THAT ARE GOING ON, 
WE'LL HAVE ONE OF OUR PARTNERS 
OTTER AI. 
THEY ARE PROVIDING TRANSCRIPTS 
OF EVERYTHING HAPPENING. 
SO YOU CAN GET THE PLAY BY 
PLAY. 
CHECK THAT OUT. 
ON THE EXTRA CRUNCH STAGE RIGHT 
NOW, WE HAVE HOW TO BUILD A 
BILLION DOLLAR SASS COMPANY. 
SO IF YOU WANT TO CHECK THAT 
OUT, IT'S PROBABLY TIME TO GO. 
NIARGA AGRAA WALL. 
ON THE MAIN STAGE I WANT A WARM 
WELCOME CEO BOB SMITH AND 
MODERATOR DARRELL. 
>> LADIES AND GENTLEMEN, PLEASE 
WELCOME TECH CRUNCH SENIOR 
WRITER. 
>> ALL RIGHT. 
WE'RE GOING TO GET THIS EVENT 
STARTED RIGHT AWAY. 
I THINK WE ARE GOING TO WATCH 
SOME ROCKETS LAUNCH. 
RIGHT? 
WE BROUGHT A VIDEO. 
WE'VE GOT SOME OF BLUE 
ORIGIN'SSUCCESSFUL LAUNCHES TO 
DATE. 
>>> WE'LL JUST WATCH THE 
ROCKETS. 
THEY ARE GREAT. 
>> YEAH, EXACTLY. 
NOW WE GO. 
SO NOW YOU JUST SAW LEVIN 
SUCCESSFUL LAUNCHES. 
AND NOW WE ARE HAVES A SCAPE 
TEST. 
WHY? 
BECAUSE THIS IS A HUMAN ROCKET. 
THE WAY TO GET AWAY FROM THE 
BOOSTER AT ANY TIME. 
AND LAND SAFELY EVERY TIME. 
AND WHAT YOU SEE THERE IS A 
LITTLE PUFF OF DUST THAT COMES 
UP. 
EVERY TIME WE LAND ABOUT 1-5 
MILES AN HOUR. 
SO IT'S LIKE SITTING DOWN HARD 
IN A CHAIR. 
AND IT SEATS SIX PEOPLE. 
YOU GET ABOUT THREE MINUTES OF 
ZERO G EXPERIENCE. 
WE HAVE DONE THAT 11 SEPARATE 
TIMES. 
AND WE ARE GETTING VERY, VERY 
CLOSE TO FLYING HUMANS FOR THE 
FIRST TIME. 
BECAUSE FUNDAMENTALLY WHAT 
WE'RE TRYING TO DO IS CHANGE 
THE OVER ALL COST CURVE AND 
AVAILABILITY OF SPACE FLIGHT. 
BECAUSE WE KNOW EVERYTHING ELSE 
GOES FROM THERE. 
WE HAVE COUNTLESS BUSINESS 
PLANS THAT ARE ON THE SHELF 
THAT ARE JUST WAITING FOR 
REUSABLE LAUNCH VEHICLES 
INSTEAD OF ACTUALLY IMPROVE THE 
COST AND THE OVER ALL SAFETY 
AND AVAILABILITY OF GETTING TO 
SPACE. 
ONCE YOU GET TO SPACE, 
EVERYTHING CAN BECOME POSSIBLE. 
>> THANKS. 
A COUPLE THINGS THERE. 
WHEN IS THAT FIRST PERSON GOING 
TO GO UP? 
I KNOW THAT THE TARGET IS 2019. 
>> THIS YEAR. 
IT IS TARGETED FOR THIS YEAR. 
OCTOBER 2ND. 
>> IT'S GETTING CLOSE. 
>> HONESTLY, WE'RE IN THE 
POSITION WHERE WE HAVE TAPPED 
THE BRAKES A LITTLE BIT. 
ONE THING THAT MAY NOT BE 
OBVIOUS TO A LOT OF PEOPLE HERE 
IS THAT, WHEN YOU GET INTO A 
SAFETY CRITICAL ENVIRONMENT, 
GETTING FUNCTIONAL READINESS IS 
DIFFERENT FROM VERIFYING 
SOMETHING. 
VERIFYING YOU HAVE SOMETHING 
THAT IS SAFE AND READY TO GO IS 
WHERE WE ARE. 
WE ARE JUST GOING THROUGH ALL 
OF OUR SYSTEMS AND MAKE SURE WE 
HAVE ALL THE SYSTEMS RIGHT. 
WE HAVE TWO FLIGHTS WE ARE 
GOING TO DO BEFORE WE GO FLY 
HUMANS ON THAT. 
THOSE FLIGHTS GO REALLY WELL, 
THEN WE MAY BE ABLE TO GET 
PEOPLE UP RELATIVELY SOON. 
IF NOT, WE'RE JUST GOING TO GO 
THROUGH THAT AND MAKE SURE THAT 
WE'RE ONLY GOING TO FLY WHEN WE 
ARE SAFE. 
>> SO YOU'RE SAYING THERE IS A 
CHANCE FOR 2019? 
>> I'M NEVER GOING TO GIVE UP 
PRESSURE ON THE TEAM TO GO GET 
IT DONE THIS YEAR. 
IS IT LIKELY? 
PROBABLY NOT. 
BECAUSE 2019 IS RAPIDLY COMING 
TO A CLOSE. 
BUT AGAIN, WE'RE NOT GOING TO 
BE DATE DRIVEN. 
WE ARE GOING TO BE DRIVEN BY 
WHEN WE ARE READY TO GO FLY. 
>> GREAT. 
AND THE OTHER PART OF THAT IS, 
CAN I BE ON THAT ONE? 
>> ABSOLUTELY. 
YOU'RE GOING TO HAVE TO GET IN 
LINE. 
>> WHAT DO THEY HAVE? 
MONEY? 
>> THEY DO. 
THEY DO. 
>> ALL RIGHT. 
THAT'S GREAT. 
LET'S TALK ABOUT WHAT IS THE 
PROGRESS HAS BEEN ON NEW GLEN? 
WHERE ARE YOU ON THAT? 
THAT IS YOUR OR OR BUTTAL 
ROCKET. 
>> IT'S TO GET SPACE TOURISM 
AND PAYLOADS. 
BUT IT'S ALSO THERE TO 
DEMONSTRATE ALL THE FUNDAMENTAL 
TECHNOLOGIES THAT WE NEED TO 
ACTUALLY GO FLY NEW GLEN WHICH 
IS OUR OR BUTTAL VEHICLE. 
WE'RE TAKING ALL OF THAT AND 
APPLYING IT TO OUR NEW GLEN 
VEHICLE. 
THE NEW GLEN VEHICLE IS A 
MASSIVE VEHICLE. 
AND IT'S WELL OVER 300 FEET 
TALL. 
JUST THE FIRST STAGE IS LARGER 
THAN MOST ROCKETS ON THE MARKET 
TODAY. 
WE ARE GOING TO LAND THAT FIRST 
STAGE, MUCH LIKE YOU SAW HERE, 
ON A MOVING SHIP. 
WHICH ACTUALLY GIVES YOU A 
LITTLE BIT MORE STABILITY AND 
ALLOWS YOU TO GET A LITTLE 
FURTHER CROSS RANGE. 
BUT AT THE END OF THE DAY, WHAT 
WE'RE TRYING TO DO IS THE EXACT 
SAME THING. 
CHANGE THE CROSS CURVE IN A 
VERY SUB CITITIVE WAY. 
AND 75% OF A COST OF A ROCKET 
IS ACTUALLY THAT FIRST STAGE. 
SO IF YOU REUSE THAT FIRST 
STAGE, YOU ACTUALLY HAVE 
FUNDAMENTALLY CHANGE WHAT YOU 
ARE ABLE TO PROVIDE. 
WE'RE IN THE DESIGN PROCESS 
NOW. 
WE HAVE PRODUCTION, HARDWARE, 
FLIGHT HARDWARE NOW DOWN IN OUR 
FACTORIES. 
WE BUILT OUR FACTORIES DOWN IN 
FLORIDA. 
AND STANDING UP OUR LAUNCH PAD. 
WE WILL HAVE OUR CRITICAL 
DESIGN REVIEW WHICH LOCKS IN 
THE DESIGN AT THE END OF THIS 
YEAR. 
WE HAVE A SERIES OF REVIEWS 
GOING ON RIGHT NOW AND STILL 
TARGETING 2021 FOR THAT FIRST 
FLIGHT. 
>> THAT IS THE FIRST TEST 
FLIGHT OR FIRST COMMERCIAL 
FLIGHT? 
>> IT WILL BE A COMMERCIAL 
FLIGHT. 
>> AND WHAT ARE WE LOOKING AT 
FOR COST FOR THAT? 
ESPECIALLY THE INITIAL ONES. 
I IMAGINE THE COST WILL GO 
DOWN. 
>> YEAH. 
THE COST CURVE WILL BE BASED ON 
THE FACT WE HAVE A COUPLE 
DIFFERENT THINGS. 
ONE, WE HAVE A REUSABLE AND 
EXPENDABLE FIRST STAGE. 
AND THE SECOND THING IS WE HAVE 
THE ABILITY TO DUAL MANIFEST. 
ONE OF THE THINGS WE HAVE IS A 
SEVEN METER FAIRING. 
WHICH IS LARGER THAN ANYTHING 
ON THE MARKET. 
WE CAN TAKE TWO VERY LARGE COME 
STATS AND PUT THEM STACK 
TOGETHER. 
>> THERE IS A LOT OF SPACE 
WORDS HERE. 
>> YOU CAN ACTUALLY GET TWO 
COMMUNICATION SATELLITES AND 
PUT THEM ON THERE. 
TWO VERY LARGE SATELLITES. 
AND THEREFORE BE ABLE TO GET 
EFFECTIVELY GIVE THE SAME 
PRICE. 
>> A TWO FOR ONE DEAL. 
>> A TWO FOR ONE DEAL. 
EXACTLY. 
AS WELL AS THE FACT 
FUNDAMENTALLY OUR COSTS ARE 
DIFFERENT. 
SO IT WILL BE INCREDIBLY COST 
COMPETITIVE. 
>> SO WHAT IS -- WHY ARE SOME 
LEGACY PLAYERS STILL AIMING FOR 
FULLY EXPANDABLE VEHICLES? 
AND I KNOW THAT MITSUBISHI 
THEIR NEXT ROCKET IS TARGETING 
A 
$50-$60 MILLION LAUNCH. 
AND YET A FULLY EXPENDABLE 
VEHICLE. 
SO WHAT IS THE DISCONNECT? 
WHY IS THAT GOING ON 
SIMULTANEOUS TO BLUE ORIGIN? 
>> I THINK WE ARE IN THE PERIOD 
OF TRANSITION WHERE THE 
BUSINESS MODELS ARE ACTUALLY 
GOING TO HAVE A DIFFERENT RISK 
POSTURE. 
SO WHAT I MEAN BY THAT, YOU 
HAVE IN ONE CASE A REUSABLE 
ARCHITECTURE. 
REUSABLE ARCHITECTURE WILL BE 
CHEAPER. 
EFFECTIVELY YOU ARE NOT 
THROWING AWAY THIS HARDWARE 
EVERY TIME. 
SO EVENTUALLY IT WILL GET 
THERE. 
THE QUESTION IS, IS YOUR TIMING 
RIGHT? 
AND IS YOUR WILLINGNESS TO GO 
INVEST IN THE INFRASTRUCTURE TO 
GET HIGH RATE PRODUCTION. 
SO THE WAY YOU GET AN 
EXPENDABLE ARCHITECTURE TO WORK 
WELL IS YOU PRODUCE A LOT OF 
THEM. 
YOU INVEST IN THE FUNDAMENTAL 
INFRASTRUCTURE TO GET THAT DONE 
AND PRODUCE A LOT OF THEM. 
GET DOWN THE LEARNING CURVE. 
HAVE A VERY GOOD RUN RATE 
ASSOCIATED WITH IT. 
YOU PRODUCE A BUDGET OF 
WIDGETS, THEY WILL BE CHEAPER. 
PEOPLE HAVE TO FIGURE OUT IF 
THEY HAVE ENOUGH MARKET SHARE 
TO SUPPORT THAT INFRASTRUCTURE. 
OR FLIP OVER TO REUSABLE. 
OBVIOUSLY WE THINK THE REUSABLE 
PATH IS THE LONGER PATH, AND 
THAT IS THE ONE WE ARE FOCUSED 
ON. 
>> SO THAT BRINGS UP ANOTHER 
ENTRUSTING KIND OF AREA OF THE 
WHOLE SPACE BUSINESS AND THE 
EMERGING SPACE BUSINESS. 
THAT IS A LOT OF UP FRONT COSTS 
YOU HAVE JUST DESCRIBED. 
AND BLUE ORIGIN IS LUCKY IN 
THAT JEFF BEZOS' PASSION 
PROJECT AND HE IS WILLING TO 
FUND IT, I THINK HE IS ON 
RECORD SAYING THIS IS PRIORITY 
FUNDING; RIGHT? 
SO WHAT ARE WE LOOKING AT FOR 
THE NEXT TEN YEARS IN TERMS OF 
ACCESS TO BUILDING NEW 
BUSINESSES AROUND SPACE? 
IS IT GOING TO HAVE TO SUBSIST 
ON THIS PATRONAGE MODEL? 
DO WE NEED THE KING AND QUEEN 
OF SPAIN TO SPONSOR OUR 
JOURNEYS? 
>> NO, WE DO NOT NEED THE KING 
OR QUEEN OF SPAIN. 
HAVING THAT LEVEL OF EQUITY IS 
A NICE PLACE TO BE. 
BUT WHAT WE HAVE SEEN, AND 
THERE IS A LESS THAN CLEAR 
RECOGNITION THAT THE LAUNCH 
VOLUME IS GOING UP. 
AND HAS BEEN GOING UP FOR QUITE 
AWHILE. 
IF YOU ACTUALLY GO LOOK OVER 
THE PAST YEARS FOR U.S. BASED 
ADDRESSABLE MARKET, IT'S BEEN 
GOING 3% A YEAR. 
AND SO YOU ARE RUNNING ROUGHLY 
AROUND 36 OR SO PER YEAR. 
AND THAT WILL ACTUALLY GO UP BY 
3%, AT LEAST, A YEAR. 
PROJECTIONS SHOW IT GOING UP 
FROM 50 TO 80. 
RIGHT NOW THE LAUNCH VOLUME 
CONTINUES TO GROW. 
AND SO MORE LAUNCH PROVIDERS 
WILL BE ABLE TO COME IN AND GET 
THOSE RATES TO SUPPORT THE OVER 
ALL INFRASTRUCTURE. 
>> YOU ARE TALKING ON THE 
DEMAND SIDE. 
>> ON THE DEMAND SIDE. 
THE DEMAND CONTINUES TO GROW 
AND EXPANSIVE. 
AND THAT ISN'T EVEN INCLUDING 
THE MEGA CONSTELLATIONS BEING 
PROPOSED. 
YOU ARE SAYING A NUMBER OF 
CONSTELLATIONS BEING PROPOSED 
BY LARGE TECH COMPANIES AND 
OTHERS SAYING THE WORLD NEEDS 
MORE CONNECTIVITY. 
BECAUSE OF THAT THEY ARE GOING 
TO NEED A LOT OF LAUNCHES 
RELATIVELY SOON. 
AND SO THE LAUNCH VOLUME IS 
REALLY LOOKING VERY ATTRACTIVE 
OVER THE NEXT TEN YEARS. 
WHETHER YOU ARE TALKING ABOUT 
WHETHER THAT IS PRIVATELY 
FUNDED, HALF GOVERNMENT 
FUNDING. 
BUT IT IS FUNDAMENTALLY 
SHIFTING TO A MORE COMMERCIAL 
MODEL. 
EVEN NOW ONLY ABOUT 20% OF THE 
OVER ALL VOLUME FOR U.S. BASE 
ADDRESSABLE MARKET IS ACTUALLY 
SECURITY PROVIDER. 
SO IT'S ALREADY COMMERCIAL. 
IT'S ALREADY COMMERCIALLY 
DOMINATED. 
THAT IS A BIG CHANGE. 
IF YOU THINK ABOUT IT 10-20 
YEARS AGO, IT WAS CERTAINLY NOT 
THAT WAY. 
IT WAS DOMINATED BY GOVERNMENTS 
THAT WERE FUNDING SPACE 
PROGRAMS. 
>> YEAH. 
SO YOU'RE SAYING FROM YOUR 
PERSPECTIVE FROM THE ROCKET 
PERSPECTIVE, IT'S A VIABLE 
BUSINESS RELATIVELY QUICKLY. 
>> ABSOLUTELY. 
>> WHAT ABOUT KIND OF LIKE 
OTHER PEOPLE WANTING TO DO 
BUILD STARTUPS OR HOW 
ACCESSIBLE IS IT FOR A NEW 
COMPANY STARTING OUT THAT 
DOESN'T, ISN'T THE BRAIN CHILD 
OF JEFF BEZOS? 
>> EXACTLY. 
THAT HAS BEEN THE FUNDAMENTAL 
PROBLEM IN SPACE BUSINESSES TO 
DATE. 
AND I ALWAYS LIKE TO MAKE THE 
ANALOGY TO AMAZON. 
AND WHAT AMAZON WAS ABLE TO GO 
DO IS BUILD ON INFRASTRUCTURE 
THAT ALREADY EXISTED. 
AND THE INFRASTRUCTURE THAT 
EXISTED WAS THEY DIDN'T HAVE TO 
INVENT THE INTERNET. 
THEY DIDN'T HAVE TOP INVENT THE 
CREDIT CARD. 
THEY DIDN'T HAVE TO INVENT THE 
PERSONAL COMPUTER OR THE 
SHIPPING, THE UPS, THEY DIDN'T 
HAVE TO DO THE POSTAL SERVICE 
AS WELL. 
THAT DOESN'T EXIST IN SPACE. 
SO THE FUNDAMENTAL 
INFRASTRUCTURE AND THE 
INFRASTRUCTURE THAT IS NEEDED 
IS HOW DO YOU GET TO SPACE? 
AND THEN ONCE YOU ACTUALLY HAVE 
THAT ACCESS TO SPACE, THAT IS 
ROUTINE AND CAPABLE AND CHEAP, 
ALL OF THOSE BUSINESS PLANS 
START COMING OFF THE SHELF. 
THAT IS WHAT YOU ARE SEEING 
NOW. 
THAT IS WHY THERE IS SO MUCH 
PRIVATE EQUITY. 
PEOPLE ARE RECOGNIZING THAT 
COST CURVE IS SHIFTING AND 
SHIFTING QUICKLY. 
AND I CAN GET FIRST MOVE OR 
ADVANTAGE BY INVESTING INTO 
SPACE NOW. 
>> RIGHT. 
BUT THE INVESTMENT IS GOING 
INTO WHAT KIND OF COMPANIES? 
IT'S NOT GOING INTO LAUNCH 
PROVIDERS. 
IS IT POSSIBLE YOU WOULD SEE 
MORE ALONG? 
WE HAVE SEEN A FEW. 
IS THAT AN AREA FOR NOW? 
OR IS THE AREA FOCUSED, NOT 
EASY OPPORTUNITY, BUT THE LOWER 
HANGING FRUIT DIFFERENT PARTS 
OF THAT KIND OF PRESSURE. 
>> I THINK IT WILL BE VARIABLE. 
I THINK YOU NOW SEE A LARGE 
NUMBER OF SMALL LAUNCH 
PROVIDERS. 
AND I THINK THAT IS GOING TO BE 
A REALLY GOOD PLACE FOR A LOT 
OF ROCKETS. 
I THINK THERE IS GOING TO BE 
DISTRIBUTED CONSTELLATIONS. 
THERE WILL BE A LOT OF 
OPPORTUNITIES TO DO 
REPLACEMENTS. 
THEY WILL DO REPLACEMENTS AND 
ALSO SMALLER VENTURES. 
I THINK THE SMALLER LAUNCH 
PROVIDERS WILL DO WELL. 
I THINK THERE IS ROOM IN THE 
LAUNCH MARKET FOR FOUR OR MORE 
U.S. BASED LAUNCH PROVIDERS. 
IN ADDITION TO THE ONES THAT 
ARE AROUND THE WORLD. 
BUT THEN IF YOU THINK ABOUT 
WHAT ELSE IS OUT THERE, YOU ARE 
NOW SEEING FUNDAMENTALLY 
DIFFERENT BUSINESS MODELS. 
YOU ARE STARTING TO SEE PEOPLE 
UNDERSTAND MUCH WHAT THEY SAW 
WITH THE COMPUTER WHERE THERE 
IS A SHIFT FROM HEY, WE AL CARE 
ABOUT THIS HARDWARE, NO, I 
DON'T CARE ABOUT THE HARDWARE 
AS MUCH. 
I CARE ABOUT THE INFORMATION 
COMING OFF OF THAT PIECE OF 
HARDWARE. 
I THINK PEOPLE ARE FIGURING OUT 
HOW TO MONOTIZE SPACE RESOURCES 
MUCH BETTER THAN THEY HAVE. 
WHETHER THAT IS EARTH 
OBSERVATION OR COMMUNICATIONS 
OR OTHER KINDS OF EVEN 
NAVIGATION. 
THERE IS A LOT OF VALUE THAT IS 
THERE THAT PEOPLE ARE STARTING 
TO UNDERSTAND AS BUSINESS 
MODELS NOW. 
>> THAT IS ANOTHER PART OF THE 
BLUE ORIGIN VISION. 
LIKE OPENING UP ACCESS TO THESE 
RESOURCES AND THEN MAKING 
BUSINESSES AROUND THOSE. 
SO CAN WE TALK A LITTLE BIT 
MORE ABOUT THE LONGER TERM 
VISION? 
>> SURE. 
ONE OF THE THINGS PEOPLE DON'T 
RECOGNIZE IS OUR NAME IS BLUE 
ORIGIN. 
>> IS THAT A DESTINATION? 
OR IS THAT THE THING? 
>> WE DIDN'T JUST PICK A COLOR. 
IT REALLY IS ABOUT THE EARTH. 
THAT IS WHY WE CALL IT BLUE 
ORIGIN. 
WE ARE COMMITTED TO THE IDEA 
YOU HAVE TO GO TO SPACE TO 
BENEFIT EARTH. 
YOU COULD HAVE AN ARGUMENT HOW 
LONG OUR RESOURCES ARE GOING TO 
LAST. 
BUT YOU CAN'T ARGUE THAT IT'S 
FINITE. 
WE ARE GOING TO RUN OUT OF 
RESOURCES AT SOME POINT. 
AND SO HUMANITY NEEDS TO 
PRESERVE THIS JEWEL. 
WE ARE NOT ABANDONING EARTH. 
WE WANT TO PROTECT AND PRESERVE 
EARTH. 
TO DO THAT YOU HAVE TO GO 
SOMEWHERE ELSE AND USE 
RESOURCES FROM ELSEWHERE TO 
ACTUALLY RELIEVE THE STRESS 
THAT IS ON EARTH AND HOPEFULLY 
RESTORE IT TO A MUCH BETTER 
PLACE THAN WHAT WE ARE SEEING. 
AND SO ONE OF THE THINGS THAT 
WE'RE PASSIONATE ABOUT IS NOT 
ONLY GETTING REUSABLE VEHICLES, 
BUT ALSO BEING ABLE TO UTILIZE 
OTHER RESOURCES. 
AND ONE THING WE TALKED ABOUT 
EARLIER THIS YEAR WAS THIS IDEA 
CALLED BLUE MOON. 
WITH IS A CARGO LANDER WE ARE 
DEVELOPING TO GO LAND ON THE 
MOON AND GET US TO THE POINT 
WHERE WE CAN UTILIZE LUNAR 
RESOURCES TO BUILD THAT 
INFRASTRUCTURE THAT GETS YOU 
MILLIONS OF PEOPLE LIVING AND 
WORKING IN SPACE. 
BECAUSE WE BELIEVE IN THIS 
MULTIGENERATIONAL VIEW OF HOW 
DO WE GET MILLIONS OF PEOPLE 
LIVING AND WORKING IN SPACE 
THAT THIS GENERATION HAS THE 
RESPONSIBILITY AND QUITE 
HONESTLY THE EXCITING 
OBLIGATION TO ACTUALLY BUILD 
THAT INFRASTRUCTURE. 
AND IF WE BUILD THAT 
INFRASTRUCTURE, IT WILL GIVE US 
A MUCH BETTER FUTURE FOR OUR 
CHILDREN AND GRANDCHILDREN. 
>> THAT SOUNDS GREAT. 
BUT IT ALSO SOUNDS LIKE, HOW DO 
YOU INCENTIVIZE THAT? 
HOW DO YOU INCENTIVIZE THAT 
WORK TO HAPPEN NOW FOR THAT 
FUTURE GOAL? 
ESPECIALLY WHEN TYPICALLY OUR 
ECONOMIC INCENTIVES ARE NOT 
THAT LONG TERM. 
>> WE HAVE A MUCH LARGER 
HORIZON. 
AND THAT IS PURPOSEFUL. 
THAT IS BEING VERY THOUGHTFUL 
OF EVEN DOWN TO OUR MOTTO OF 
WHAT WE TALK ABOUT. 
WHICH IS THE STEP BY STEP 
APPROACH. 
WE WILL MASTER CERTAIN THINGS 
STEP BY STEP. 
SO WE BREAK IT DOWN TO, WE'RE 
GOING TO MASTER HOW WE ACTUALLY 
MAKE SUB ORBITAL FLIGHT WORK. 
NOT LET'S GO INSPECT IT AFTER 
THE FLIGHT. 
TRULY MAKE IT SO YOU CAN MAKE 
IT SIMPLY FUEL IT UP AND GO FLY 
IT. 
WE'RE GOING TO MASTER THAT AND 
THE ENGINE TECHNOLOGY AND 
MASTER IT AT THE ORBITAL SCALE. 
SO WE BREAK DOWN THAT LONGER 
TERM HORIZON INTO SMALLER 
STEPS. 
AND AT THE SAME TIME, MAKE SURE 
WE ARE MAKING A SELF-SUSTAINING 
BUSINESS. 
BECAUSE BLUE ORIGIN IS GOING TO 
BECOME A SELF-SUSTAINING 
BUSINESS. 
WHY? 
BECAUSE A, CUSTOMERS MAKE YOU 
BUSINESS. 
AND SELF-SUSTAINING BUSINESSES 
LAST LONGER. 
THEY OUT LAST THEIR FOUNDER. 
>> AND IS THERE A CONSIDERATION 
IN THERE BRINGING OTHERS AROUND 
FOR THE RIDE? 
OR WILL YOU BE LIKE WE WILL 
TAKE CARE OF OUR OWN HALFS AND 
HOPEFULLY THE BUSINESSES WILL 
COME AFTER WE ESTABLISH THIS. 
>> I THINK THERE IS CLEARLY 
GOING TO BE AN ECOSYSTEM THAT 
DEVELOPS AROUND ALL OF THIS. 
AS YOU BUILD THOSE CAPABILITIES 
AND BUILD THAT TYPE OF ACCESS, 
PEOPLE START RECOGNIZING WHAT 
THEY CAN GO DO. 
LIKE BUSINESS PLANS COMING OFF 
THE SHELF, WE TRIED THIS 
BEFORE, WE THOUGHT ABOUT IT, IT 
WAS NEVER FEASIBLE. 
AND THERE IS DOZENS AND DOZENS 
OF PROFITABLE IDEAS THAT NEED 
THE CAPABILITY TO GET TO SPACE. 
>> SO ANOTHER CONCRETE PART OF 
THE BLUE ORIGIN VISION I FIND 
INTERESTING IS THIS CONCEPT OF 
THE SPACE STATIONS BEING MORE 
PRACTICAL, HAS BEEN BIATION 
HABITATION ON SPACE. 
>> O'NEIL HAD THIS IDEAL. 
IT'S HIS FUNDAMENTAL PREMISE HE 
PUT IN FRONT OF HIS STUDENTS. 
LET'S THINK ABOUT THIS. 
WHAT IS THE BEST PLACE FOR 
HUMANS TO LIVE OFF THE EARTH? 
AND WHEN THEY ASKED THAT 
QUESTION, THE ANSWER CAME BACK 
THAT IT'S NOT PLANETARY 
SURFACES. 
AND ISAAC HAD A FUNNY QUOTE IN 
AN INTERVIEW SAYING WE HAVE ALL 
BECOME PLANETARY CHAUVINISTS. 
LIVING ON MOON LIVING ON MARS, 
LIVING ON ANY OF THE HABITABLE 
SERVICES THAT WE SEE, IT'S NOT 
A VERY GOOD ENVIRONMENT. 
AND FUNDAMENTALLY ISN'T IN 
TERMS OF ONE SIXTH GRAVITY OR 
ONE-THIRD GRAVITY. 
REALLY DOESN'T HAVE MUCH OF AN 
ATMOSPHERE. 
SO LIVING THERE IS LIKE LIVING 
ON SOME OF THE WORST PLACES ON 
THE PLANET. 
IT WOULD BE MUCH, MUCH HARDER 
THAN WHAT YOU HAVE HERE TODAY. 
BUT IF YOU HAVE A MANUFACTURED 
WORLD. 
THAT IS WHAT O'NEIL COLONIES 
ARE. 
THAT WOULD HAVE ENVIRONMENTS 
ASSOCIATED WITH THE KIND OF 
GRAVITY YOU WANT. 
THE KIND OF ATMOSPHERE YOU 
WANT. 
COULD BE A VERY, VERY GOOD 
PLACE TO LIVE. 
AND THOSE KIND OF ISLANDS THAT 
WOULD BE AT EARTH RADIUS TO THE 
SUN. 
AND CLOSE TO HOME BECAUSE 
EVERYONE WILL WANT TO COME BACK 
HOME. 
THAT WILL BE A VERY APPEALING 
VISION. 
AND IT'S ONE OF MANY VISIONS, 
BUT IT'S ONE THAT SEEMS THE 
MOST REASONABLABLE  THAT SEEMS 
THE MOST REASONABLE TO ME. 
>> IF YOU JUST REDIRECT IT EVEN 
A FRACTION OF THOSE RESOURCES 
TO MORE IMMEDIATE SHORT-TERM 
FIXES, YOU CAN MAKE A LOT OF 
PEOPLE'S LIVES A LOT BETTER, A 
LOT QUICKER. 
BUT IT SOUNDS LIKE THAT IS 
AGAIN, THE LONGER TERM DEAL OF 
BLUE ORIGIN? 
>> I THINK IN ANY PORTFOLIO 
WHETHER YOU ARE TALKING 
BUSINESS OR PERSONAL INVESTMENT 
STRATEGY, YOU SHOULD HAVE BOTH 
THINGS. 
YOU NEED TO HAVE SHORT TERM AND 
LONG TERM. 
I NEVER LOOK AT THIS AS A 
DICHOTOMY. 
I NEVER LOOK AT IT AS YOU CAN 
ONLY DO THIS IMMEDIATE THING OR 
THIS LONG-TERM THING. 
YOU SHOULD DO. 
AND WE ARE DOING BOTH. 
WE HAVE A WHOLE BUNCH OF THINGS 
THAT REQUIRE OUR RESOURCES AND 
ATTENTION RIGHT NOW. 
WE ALSO NEED TO PROTECT WHAT 
WILL HAPPEN TO OUR CHILDREN AND 
GRAND CHIRP AND WHAT THEIR 
FUTURE LOOKS LIKE. 
THAT IS ONE OF THE REASONS WHY 
WE HAVE BLUE ORIGIN. 
>> GREAT. 
ALL RIGHT. 
WE ARE GETTING CLOSE TO TIME. 
BUT A COUPLE QUICK QUESTIONS. 
WHAT IS YOUR NEXT PLANNED 
LAUNCH ACTIVITY? 
>> WE WILL HAVE A PALO LAUNCH 
COMING UP RELATIVELY SOON. 
THIS WILL BE TRYING TO EXERCISE 
THE OVER ALL SYSTEM. 
AND MAKE SURE WE HAVE IT 
VERIFIED TO THE EXTENT WE NEED 
IT TO BE. 
>> AND WHAT IS THE PRICE TAG ON 
THAT FIRST COMMERCIAL FLIGHT? 
>> WE ARE ALWAYS GOING TO HAVE 
A PRICE TAG THAT WE HAVE 
LISTED. 
AND RIGHT NOW WE HAVEN'T 
PUBLISHED THAT YET. 
I WOULD SAY FUNDAMENTALLY IT'S 
GOING TO NOT BE CHEAP. 
ANY NEW TECHNOLOGY IS NEVER 
CHEAP. 
WHETHER YOU ARE TALKING ABOUT 
THE FIRST IBM COMPUTERS OR WHAT 
WE ACTUALLY SEE TODAY. 
BUT IT WILL BE IN THE HUNDREDS 
OF THOUSANDS OF DOLLARS FOR 
PEOPLE TO GO. 
INITIALLY. 
BUT WE WILL GET THIS DOWN TO 
THE POINT MIDDLE CLASS PEOPLE 
CAN USE IT. 
>> AMAZING. 
THANKS VERY MUCH. 
>> THANK YOU, DARRELL. 
APPRECIATE IT. 
THANKS. 
>> I ALMOST LOST SOMETHING 
IMPORTANT THERE. 
YOU MAY KNOW OUR NEXT GUEST 
FROM 500 DAYS OF SUMMER, 
INCEPTION, SNOWED IN, OR MY 
PERSONAL FAVORITE MOVIES TEN 
THINGS I HATE ABOUT YOU. 
BUT HE ALSO -- YEAH. 
BUT HE ALSO HAPPENS TO BE AN 
ACCOMPLISHED ENTREPRENEUR 
PLEASE WELCOME TO THE STAGE 
FROM HIT RECORD JOSEPH GORDON 
LEVITT. 
>> HELLO, EVERYBODY. 
>> WELCOME, WELCOME. 
>> THANK YOU VERY MUCH. 
>> IT'S ALWAYS AWKWARD WHEN YOU 
FIRST SIT DOWN LIKE YOU HAVEN'T 
BEEN TALKING FOR 20 MINUTES 
BACK THERE. 
>> SO HOW ARE YOU? 
>> FINE. 
HOW ARE YOU? 
I THOUGHT WE COULD START. 
RAISE YOUR HAND IF YOU KNOW 
WHAT HIT RECORD IS? 
>> THAT'S GOOD. 
>> YOU STARTED IT AS A HOBBY, 
AND NOW IT'S THIS WHOLE BIG 
THING. 
WHY DON'T YOU EXPLAIN WHAT HIT 
RECORD IS. 
>> IT DID BEGIN LONG AGO. 
NOT AS A STARTUP AT ALL. 
IT WAS A TIME IN MY LIFE I HAD 
BEEN ACTING EVER SINCE I WAS A 
KID AND I QUIT FOR AWHILE TO GO 
TO COLLEGE. 
WHEN I GOT BACK INTO IT OR 
WANTED TO GET BACK INTO IT, I 
COULDN'T GET A PART. 
NO ONE WOULD CAST ME. 
AND THIS FELT TERRIBLE. 
REALLY PAINFUL. 
IF YOU'RE AN ARTIST OR KNOW ANY 
ARTISTS WHO WANT TO DO THEIR 
THING BUT AREN'T GETTING THE 
OUTLET TO DO IT. 
AND SO I REALIZE AT THAT POINT 
OKAY I NEED TO TAKE 
RESPONSIBILITY FOR MY OWN 
CREATIVITY. 
I NEED TO BE ABLE TO DO THIS 
ONMY OWN AND HIT RECORD WAS 
THIS TURN OF PHRASE I CAME UP 
WITH TO BE LIKE A SYMBOL FOR 
MYSELF. 
I'M GOING TO BE THE ONE TO PUSH 
THE BUTTON. 
HAS A BIT OF WORD PLAY ON HIT 
RECORD AND HOW THE MEDIA IS 
CHANGING FROM -- MY BROTHER 
HELPED ME SET UP A WEBSITE 
WHERE I WAS POSTING VIDEOS AND 
SONGEST AND STORIES. 
AND WE PUT UP THIS MESSAGE 
BOARD. 
WE PUT UP THE MESSAGE BOARD IN 
2007. 
JUST THIS LITTLE PHP, OUT OF 
THE BOX MESSAGE BOARD. 
AND WHAT WE NOTICED WITH THE 
PEOPLE THAT STARTED COMING TO 
THIS MESSAGE BOARD, SOME WANTED 
TO CHECK OUT WHAT I WAS MAKING. 
BUT WHAT A LOT OF THEM WANTED 
TOO IS MAKE THINGS TOGETHER. 
AND WE THOUGHT, NOW THAT IS 
LEGITIMATELY NEW BECAUSE YOU 
CAN WATCH A VIDEO ON THE 
INTERNET AND THAT IS BASICALLY 
THE SAME AS WATCHING 
TELEVISION. 
YOU CAN LISTEN TO A SONG ON THE 
INTERNET. 
THAT IS BASICALLY THE SAME AS 
THE RADIO. 
USING THE INTERNET TO 
COLLABORATE, TO HAVE PEOPLE BE 
ABLE TO MAKE THINGS TOGETHER 
THEY MIGHT NOT HAVE BEEN ABLE 
TO MAKE ON THEIR OWN, THAT IS 
NEW BEHAVIOR THAT WOULDN'T HAVE 
EXISTED A FEW YEARS AGO BEFORE 
THIS TECHNOLOGY. 
WE THOUGHT IT WAS COOL AND WE 
LEANED INTO IT. 
MY BROTHER WAS A CODER AND WE 
STARTED BUILDING LITTLE 
FEATURES ON TOP OF THIS MESSAGE 
BOARD. 
STILL COMPLETELY AS A HOBBY. 
BUT THE COMMUNITY GREW. 
AND WAS SO MUCH FUN AND VIBRANT 
AND POSITIVE AND DIFFERENT THAN 
WHAT YOU SEE ELSEWHERE ON THE 
INTERNET BECAUSE I THINK WHEN 
PEOPLE ARE MAKING THINGS 
TOGETHER, THEY HAVE A COMMON 
GOAL. 
THEY TREAT EACH OTHER 
DIFFERENTLY THAN WHEN THEY ARE 
COMPETING FOR ATTENTION AND 
POPULARITY. 
SO AFTER A FEW YEARS MY FRIEND 
JARED WHO WAS HERE. 
SAID COULD THIS BE SOMETHING 
MORE THAN A HOBBY AND A LITTLE 
MESSAGE BOARD? 
COULD THIS BE A PRODUCTION 
COMPANY? 
AND IN 2010 WE LAUNCHED IT AS A 
PRODUCTION COMPANY. 
WE SAID LET'S USE THIS PROCESS 
WHERE PEOPLE ARE MAKING THINGS 
TOGETHER ONLINE AND LET'S -- WE 
MADE A LIST OF GOALS. 
COULD WE MAKE A SHORT FILM LIKE 
THIS? 
THAT COULD PLAY AT A FESTIVAL? 
COULD WE PUT OUT A RECORD? 
COULD WE PUBLISH A BOOK. 
ONE DAY MAYBE MAKE A TV SHOW. 
OVER THE YEARS WE MANAGED TO DO 
ALL OF THOSE THINGS. 
AND WE FIGURED OUT THE IP AND 
IN THE TERMS OF SERVICE AND HOW 
TO PAY PEOPLE WHEN PRODUCTION 
WAS MONOTIZED. 
AND WE ARE REALLY PROUD OF THE 
COMMUNITY THAT FORMED. 
BECAUSE LIKE I SAID, EVEN AS IT 
GREW, IT MAINTAINED THIS 
POSITIVE FEELING THAT FELT 
DIFFERENT THAN OTHER PLACES 
ONLINE. 
AND SO NOW JUST RECENTLY WE 
STARTED THINKING OKAY, IT'S 
BEEN GREAT AS A PRODUCTION 
COMPANY, BUT THERE IS A LIMIT 
TO HOW MANY PEOPLE WE CAN 
REALLY INCLUDE IN THIS CREATIVE 
PROCESS. 
WITH THE PRODUCTION COMPANY 
MODEL. 
IN THE PRODUCTION COMPANY MODEL 
IT'S US LEADING THESE 
COLLABORATIVE PROJECTS. 
AND THAT DOESN'T SCALE. 
ONLY SO MANY PEOPLE CAN REALLY 
BE INCLUDED IF WE ARE ALWAYS 
THE LEADERS. 
SO WHAT IF WE COULD TAKE WHAT 
WE HAVE LEARNED DOING THIS FOR 
YEARS, LEADING THESE 
COLLABORATIVE PROJECTS AND 
BUILD TOOLS TO LET ANYBODY COME 
AND LEAD THEIR OWN PROJECT. 
AND LAST YEAR WE CAME UP HERE 
TO SILICON VALLEY AND PITCHED 
THAT IDEA AND RAISED VENTURE 
CAPITAL WITH EXCELLENT 
PARTNERS. 
I'M GOING TO SAY ALL OF THESE 
NAMES BECAUSE THEY ARE AWESOME 
PEOPLE. 
>> I WANT KNOW. 
I HAD THIS VISION. 
WE HAVE CELEBRITIES COME AND 
JOIN US AT DISRUPT AND MORE 
OFTEN THAN NOT THEY ARE 
INVESTORS AND NOT FOUNDERS. 
I LOVE THE IDEA OF JOSEPH 
GORDON LEVITT ON SAND HILL 
ROAD. 
TELL ME ABOUT FUND RAISING. 
WERE YOU INTIMIDATED? 
>> IT'S FUNNY. 
IT'S A MIX OF VERY MUCH INSIDE 
MY COMFORT AND VERY MUCH 
OUTSIDE. 
BECAUSE WHAT IS INSIDE MY 
COMFORT ZONE IS GOING INTO 
ROOMS AND RELATING TO PEOPLE 
AND BEING ABLE TO TELL A STORY. 
AND GET OTHER PEOPLE TO FEEL 
HOW I FEEL. 
THAT IS WHAT ACTING AND STORY 
TELLING IS. 
WHAT IS, IS BACKING UP THOSE 
FEELINGS WITH SOMETHING MORE 
SCIENTIFIC DRIVEN. 
ALTHOUGH I THINK TIE COD MY IS 
PROBLEMATIC. 
BUT WE WILL COME BACK TO IT. 
I THINK THE BIGGEST BENEFIT I 
GOT AND THEN I SHOULD SAY I AND 
MY TEAM GOT FROM RAISING MONEY 
EVEN BEYOND THE CAPITAL, WAS IN 
ORDER TO RAISE MONEY, WE HAD TO 
REALLY PUT OURSELVES THROUGH 
THEPACES AND REALLY FIGURE OUT 
WHAT WE WERE DOING WAS IN A WAY 
FAR MORE DISCIPLINED. 
ALL OF OUR DIVISION HAD BEEN 
INBOUND, BUT IT'S JUST BECAUSE 
WE WERE, NOT TO PAT OURSELVES 
ON THE BACK, WE WERE GOOD AT 
WHAT WE DID. 
WE WERE DOING SOMETHING UNIQUE. 
PEOPLE WOULD COME FIND US AND 
WE WOULD DO JOBS AND THAT PAID 
THE BILLS AND THAT ALLOWED US 
TO GROW. 
AND WE WERE 18 PEOPLE. 
BUT THEN LIKE I SAID WHEN WE 
STARTED SAYING HOW CAN WE 
INCLUDE A LOT MORE PEOPLE? 
OKAY, WELL THEN WE HAVE TO LEAN 
INTO TECHNOLOGY. 
IF WE ARE GOING TO LEAN INTO 
TECHNOLOGY, THAT WILL COST A 
LOT MORE MONEY. 
WHERE IS THAT MONEY GOING TO 
COME FROM? 
AND FIGURING OUT WHAT A 
BUSINESS MODEL IS. 
I DIDN'T KNOW WHAT -- I HAD 
NEVER HEARD THE TERM KPI OR 
THINGS LIKE THAT. 
I STARTED COMING TO CONFERENCES 
LIKE THIS AND MEETING REALLY 
SMART PEOPLE. 
THEY WOULD ASK ME QUESTIONS 
ABOUT DATA. 
AND I WOULD BE LIKE WE DON'T 
PAY ATTENTION TO THAT. 
WE MAKE ART THAT WE LIKE AND WE 
MAKE ENOUGH MONEY TO PAY THE 
BILLS AND THAT'S WHAT WE'VE 
BEEN DOING SUCCESSFULLY 
FORREERS. 
AND THEY WOULD ASK QUESTIONS 
ABOUT RETENTION AND MONTHLY 
ACTIVE USERS. 
I DIDN'T KNOW THE ANSWERS. 
SO WE HAD TO START TRACKING 
THOSE THINGS. 
AND IT'S REALLY BEEN 
EDUCATIONAL AND I THINK GROWN 
US UP A LOT AND MADE US A LOT 
MORE EFFECTIVE. 
>> ALSO THERE ARE NO 
CONFERENCES LIKE THIS, BY THE 
WAY. 
>> RIGHT. 
OTHER CONFERENCES THAT WERE NOT 
AS DISRUPTIVE AS THIS ONE. 
>> THERE YOU GO. 
THANK YOU. 
SPEAKING OF SOME OF THESE 
BUSINESS MODELY TYPE THINGS. 
WHAT IS THE REVENUE SPLIT 
BETWEEN HIT RECORD AND THE 
PLATFORM. 
>> THERE IS A COUPLE DIFFERENT 
WAYS WE DO IT DEPENDING ON THE 
PRODUCTION. 
IF THE PRODUCTION IS TURNING A 
PROFIT, THEN WE SPLIT THOSE 
PROFITS AND HALF GO TO THE 
CONTRIBUTING ARTISTS, AND HALF 
GOES TO HIT RECORD. 
IT'S IMPORTANT TO NOTE THAT 
USUALLY IN THESE PRODUCTIONS 
WHERE WE'RE MONOTIZING, HALF IS 
BEING DONE BY CREATIVE PEOPLE 
IN OUR OFFICE.  
WE ARE WORKING WITH THOSE THAT 
ARE NOT PROFESSIONAL, BUT THEY 
LIKE TO CREATE. 
AND THE IDEA IS TO INCLUDE A 
LOT MORE PEOPLE AND HAVE THAT 
CREATIVITY END UP RESULTING IN 
A COLLABORATIVE EFFORT THAT IS 
OF THE KIND OF QUALITY THAT WE 
CAN DELIVER IT TO A BUYER. 
SO HALF AND HALF ALWAYS FELT 
FAIR. 
THERE ARE OTHER PRODUCTIONS 
THAT DON'T TURN A PROFIT. 
FOR EXAMPLE, WHEN WE DO A TV 
SHOW. 
TV SHOWS DON'T USUALLY TURN 
PROFITS. 
AND IF THEY DO TURN PROFITS, 
IT'S BECAUSE FIVE YEARS LATER 
OR WHATEVER, IT GOES INTO 
INTERNATIONAL SYNDICATION. 
SO WE WANTED TO MAKE SURE WE 
COULD PAY THE CONTRIBUTING 
ARTISTS EVEN THOUGH WE WEREN'T 
GOING TO SEE A PROFIT PER SE. 
SO WE EARMARK A LINE ITEM IN A 
PRODUCTION BUDGET. 
WE SAY WHAT THAT NUMBER IS AT 
THE BEGINNING AND THEN WE SPLIT 
UP THAT POOL AMONGST THE 
CONTRIBUTING ARTISTS. 
>> RECENTLY YOU STRUCK A DEAL 
WITH UBASOFT FOR TEN SONGS FOR 
ONE OF THEIR GAMES. 
TEN ORIGINAL SONGS FOR $20,000. 
WHICH IS $2,000 A SONG. 
LET'S SAY THERE IS FIVE CRAB 
TOURS THAT IS $400 A PIECE. 
THERE HAS BEEN SOME CRITICS 
THAT SAY THIS ISN'T ENOUGH. 
RIGHT? 
HOW DO YOU RESPOND TO THAT? 
>> FIRST OF ALL I WOULD SAY, I 
DON'T KNOW IT'S CLEAR THAT A 
LOT OF THAT WORK IS BEING DONE 
BY PEOPLE IN OUR OFFICE. 
LIKE I JUST SAID, I THINK THAT 
THE CRITICS ARE ASSUMING THAT 
PEOPLE ARE SUBMITTING FINISHED 
SONGS ALL BY THEMSELVES. 
PROFESSIONAL GRADE FINISHED 
SONGS WE CAN PLUCK OUT AND 
DELIVER. 
WHICH IS NOT AT ALL WHAT 
HAPPENS ON OUR SITE. 
ON OUR SITE IT'S PROFESSIONALS 
IN OUR OFFICE, MUSIC PRODUCERS, 
GOING OUT TO THE WORLD AND 
SAYING, LET'S LEAD A 
COLLABORATIVE EFFORT AND 
WHOEVER YOU ARE, WHEREVER YOU 
ARE, WHATEVER YOUR SKILL LEVEL, 
WE ARE GOING TO FIND A WAY TO 
INCLUDE YOU IN THIS. 
WHICH IS I THINK WHAT UBASOFT 
ULTIMATELY WANTED. 
WAS A WAY TO INCLUDE NOT JUST 
PROFESSIONAL MUSICIANS IN THE 
GAME, THEIR GOAL WAS TO NOT 
LIKE HEY, WE WILL FIND A CHEAP 
WAY TO HAVE MUSIC GET INTO OUR 
GAME. 
THEY ARE NOT SPENDING ANY LESS 
MONEY. 
THEY ARE NOT CUTTING ANY COSTS. 
THEY ARE NOT PAYING ANY FEWER 
PEOPLE. 
THE GOAL WAS TO INCLUDE AS MANY 
PEOPLE AS POSSIBLE. 
AND HIT RECORD ALLOWS FOR A 
MUCH MORE INCLUSIVE 
COLLABORATION BECAUSE LIKE I 
SAID, YOU DON'T HAVE TO BE, NOT 
THAT MANY PEOPLE HAVE THE 
CAPABILITY TO DELIVER AN ENTIRE 
SONG ALL BY THEMSELVES. 
BUT A LOT OF PEOPLE WANT TO 
SING ALONG OR PLAY A GUITAR 
PART OR WRITE A FEW LYRICS AND 
HAVE THOSE LYRICS BE COMBINED 
WITH A WHOLE BUNCH OF OTHER 
PEOPLE WHO WROTE LYRICS AND A 
WHOLE BUNCHOVER OTHER PEOPLE 
WHO PLAYED PARTS AND END UP IN 
A COLLABORATIVE SONG THAT CAN 
BE GOOD ENOUGH TO DELIVER TO 
UBASOFT. 
SO THAT IS THE SERVICE THAT WE 
ARE PROVIDING. 
AND WE'VE BEEN PAYING PEOPLE IN 
THIS EXACT WAY FOR ALMOST TEN 
YEARS NOW. 
WE'VE PAID ALMOST $3 MILLION TO 
DIFFERENT PEOPLE. 
THE CRITICISM YOU ARE TALKING 
ABOUT IS THE VERY FIRST TIME WE 
EVER GOT CRITICISM LIKE THAT. 
AND TO BE HONEST, MOST OF THE 
CRITICS DIDN'T HAVE ALL THE 
FACTS AND HAPPENING ON TWITTER 
WHICH IS NOT SO GOOD AT 
DELIVERING FACTS. 
>> YOU'RE NOT WRONG ABOUT THAT. 
CAN A CREATOR COME AND MAKE HIT 
RECORD A VIABLE CAREER? 
>> NO. 
AND WE NEVER POSITION IT THAT 
WAY. 
NO. 
THERE IS A LOT OF, I THINK 
MESSAGING OUT THERE THAT WILL 
SAY, WE CAN BE YOUR ENTREE INTO 
A CAREER AS A PROFESSIONAL 
CREATIVE. 
AND I THINK FRANKLY MOST OF 
THAT IS NONENTIRELY HONEST. 
YOUTUBE PRESENTS A NARRATIVE OF 
LIKE HEY, YOU CAN BE A STAR. 
YOU CAN BECOME AN INFLUENCER. 
THE AMOUNT OF PEOPLE WHO MAKE A 
LIVING ON YOUTUBE IS MINUSCULE 
COMPARED TO THE NUMBER OF 
PEOPLE THAT ARE UP LOADING 
VIDEOS. 
ON HIT RECORD WE REALLY DON'T 
EMPHASIZE THIS IS YOUR ENTREE 
INTO A CAREER. 
WHAT WE TALK ABOUT IS THERE IS 
MORE TO CREATIVITY TO MONEY AND 
SHOW BUSINESS. 
CREATIVITY IS SOMETHING THAT I 
THINK IS HUMAN UNIVERSAL. 
I'VE BEEN VERY LUCKY TO HAVE A 
CAREER AND WHEN I SAY LUCKY, I 
MEAN LUCKY. 
I HAPPEN TO BE BORN RAISED IN 
SOUTHERN CALIFORNIA. 
I HAPPEN TO BE A STRAIGHT WHITE 
MALE. 
I HAPPEN TO HAVE A LOT OF 
DIFFERENT ADVANTAGES THAT NOT 
EVERYBODY HAS. 
BUT THAT DOESN'T MEAN THAT 
EVERYBODY SHOULDN'T HAVE THAT 
URGE TO BE CREATIVE, MET IN A 
FULFILLING WAY. 
AND I THINK A LOT OF THE MEDIA 
TECH PLATFORMS RIGHT NOW DON'T 
REALLY COME THROUGH ON 
FULFILLING THAT SIDE OF 
CREATIVITY. 
BECAUSE THEY PUT SO MUCH FOCUS. 
YOU CAN BE A STAR, BUILD YOUR 
SUBSCRIBERS, GET FAMOUS, GET 
ATTENTION. 
BECAUSE THAT IS WHAT DRIVES 
THEIR BUSINESS MODEL. 
WE TRY TO EMPHASIZE WHAT I HAVE 
EXPERIENCED IN MY LIFE IS 
ACTUALLY WHAT BRINGS ME A LOT 
OF JOY AND HAPPINESS ABOUT THE 
CREATIVE PROCESS IS NOT THE RED 
CARPETS, IT'S NOT THE BOX 
OFFICE. 
IT'S NOT THOSE KINDS OF 
EXTERNAL VALUE DAZER. 
IT'S DOING IT. 
WHEN I GET TO ACTUALLY DO THE 
ART AND ESPECIALLY DO IT WITH 
OTHER PEOPLE. 
>> YEAH. 
DO YOU THINK -- SPEAKING OF 
YOUTUBE AND INSTAGRAM WE ARE 
ACTUALLY GOING TO HAVE NEIL 
HERE SOON. 
DO YOU THINK YOUTUBE AND 
INSTAGRAM ARE A NET POSITIVE OR 
NET NEGATIVE FOR HUMANS 
CREATIVITY? 
>> I THINK THEY ARE A NET 
NEGATIVE. 
AND THEY ARE TWO DIFFERENT 
PLATFORMS. 
YOUTUBE IN PARTICULAR, AND I 
SHOULD SAY BOTH. 
YOUTUBE AND INSTAGRAM, THERE 
ARE TONS OF BEAUTIFUL THINGS 
THAT YOU CAN FIND ON BOTH OF 
THOSE PLATFORMS. 
SO YOU ASK ME NET. 
SO WHEN I SAY NET NEGATIVE, I 
DON'T MEAN ABSOLUTELY NEGATIVE. 
THERE IS TONS OF INCREDIBLE 
STUFF, BEAUTIFUL COMMUNITIES 
FORM. 
ALL KINDS OF CREATIVE HUMAN 
EXPRESSION. 
IT'S NOT TO SAY THAT IT'S ALL 
BAD, BUT I DO THINK THAT IN 
GENERAL THE BASIC BUSINESS 
MODEL OF WE'RE GOING TO OFFER A 
QUOTE, UNQUOTE FREE SERVICE IN 
EXCHANGE FOR THE RIGHT TO 
CONDUCT MASS SURVEILLANCE AND 
APPLY THESE INCREDIBLY 
EXPENSIVE ALGORITHMS TO THIS 
MASSIVE DATA SET TO OPTIMIZE 
FOR NOT THE BENEFIT OF THE 
USERS. 
NOT GOING TO MAKE THE USERS 
CREATIVE, INFORMED. 
BUT OPTIMIZE FOR THE AGENDA OF 
THESE THIRD PARTY ADVERTISERS. 
I THINK THAT IS A BASIC 
BUSINESS MODEL THAT IS WE ALL 
AS THE WORLD SHOULD GET OFF OF. 
ENTIRELY. 
WE SHOULDN'T BE MONOTIZING, 
SOFTWARE OR BUSINESSES THAT 
WAY. 
AND THAT MAKES SENSE IF YOU ARE 
THE ONE PAYING THE HIP 
THATTIST. 
IF YOU ARE THE ONE SAYING HIP 
THATTIST I WANT YOU TO HELP ME 
DO THIS. 
YOU DON'T KNOW WHAT THAT PERSON 
IS ASKING THE HYPNOTIST GETTING 
YOU TO DO. 
NO ONE AGREE TO DO THAT. 
BUT THAT IS WHAT WE ARE ALL 
DOING. 
I AM ON INSTAGRAM AND YOUTUBE 
AND TWITTER AS WELL. 
BUT IT'S NOT A BUSINESS MODEL 
THAT I THINK IS PROBABLY 
BENEFICIAL IN THE LONG-TERM. 
AND THERE IS A LOT THAT EXPERTS 
HAVE SAID IMPACTS GOVERNMENT. 
WHAT I CAN SPEAK ON WITH 
AUTHORITY IS THE CREATIVE 
PROCESS. 
AND I DO THINK THAT THIS 
BUSINESS MODEL IS BAD FOR 
PEOPLE'S CREATIVITY, ESPECIALLY 
YOUNG PEOPLE. 
I THINK IF YOU ARE SETTING OUT 
TO MAKE A SHORT FILM, FOR 
EXAMPLE, AND YOU ALREADY HAVE 
ON YOUR MIND WHAT'S GOING TO 
GET ME THE MOST LIKES, 
FOLLOWERS, SUBSCRIBERS, THAT IS 
NOT THE CREATIVE PROCESS THAT 
IS GOING TO MAKE YOU THE MOST 
HAPPY AS A CREATIVE PERSON. 
>> A COUPLE MORE THINGS. 
WE ARE RUNNING SHORT. 
I WANT TO TALK ABOUT NETFLIX A 
LITTLE BIT. 
NETFLIX IS ESSENTIALLY BEEN 
COLLECTING SO MUCH DATA ABOUT 
WHAT WE LIKE AND DON'T LIKE AND 
HOW WE CONSUME CONTENT THAT 
THEY ARE ABLE TO MAKE VERY DATA 
DRIVEN DECISIONS. 
THEY DON'T PAY A DOLLAR OVER 
WHAT THEY NEED TO FOR THE 
CONTENT THEY WANT. 
AND THEY CAN OPTIMIZE IT SO YOU 
CAN CLICK ON IT AND WATCH IT. 
YOU OPERATE ON A VERY DIFFERENT 
WORLD WHERE IT'S REALLY 
CREATIVITY THAT DRIVES SOME OF 
THE DECISIONS THAT YOU MIGHT 
MAKE. 
DO YOU -- HOW DO YOU APPROACH 
THAT? 
IS DATA SOMETHING THAT IS GOING 
TO BE MORE AND MORE INVOLVED IN 
THE HIT RECORD PROCESS? 
>> I DON'T HAVE ANY PROBLEM 
WITH USING DATA. 
I DON'T HAVE ANY PROBLEM WITH 
MACHINE LEARNING. 
THE QUESTION IS, WHAT IS THE 
MACHINE LEARNING ALGORITHM 
OPTIMIZING FOR? 
WHOSE AGENDA IS IT SERVING? 
I THINK NETFLIX IS A GOOD 
EXAMPLE OF WHAT WE SHOULD BE 
DOING. 
THERE IS A DIRECT BILLING 
RELATIONSHIP BETWEEN THE 
CUSTOMER AND SERVICE. 
THE CUSTOMER IS LIKE HEY, I 
WANT TO WATCH STUFF I LIKE. 
NETFLIX IS LIKE COOL, WE WILL 
COLLECT A BUNCH OF DATA ON YOU 
AND GIVE YOU STUFF YOU WANT. 
THERE ARE MEDICATION APPS, 
THERE IS FITNESS APPS THAT USE 
DATA TO HELP YOU ACHIEVE THE 
GOALS YOU WANT TO ACHIEVE. 
GREAT. 
AND WHAT WE'RE TRYING TO BUILD 
WITH HIT RECORD, WE THINK WE 
CAN BUILD AN APP THAT WILL HELP 
YOU BE YOUR BEST CREATIVE SELF. 
BY PAIRING YOU UP WITH OTHER 
PEOPLE TO COLLABORATE WITH 
BECAUSE IT OFTENTIMES HELP IF 
YOU WANT TO BE CREATIVE TO BE 
DOING IT WITH OTHER PEOPLE. 
I'M ALL FOR USING DATA TO 
ACCOMPLISH A GOAL THE USER HAS 
SIGNED UP FOR. 
IT'S WHEN THE USER IS BEING 
SUBJECTED TO THESE ALGORITHMS 
NOT IN THEIR INTEREST BUT IN 
THE INTEREST OF SOME THIRD 
PARTY, I THINK THAT IS WHEN YOU 
GET INTO DANGER. 
>> SO MAYOR -- IT WAS RECENTLY 
ANNOUNCED THAT YOU ARE GOING TO 
BE ON AN UPCOMING PROJECT THAT 
WILL BE ON APPLE TV PLUS. 
APPLE TV PLUS HAS NOT LAUNCHED 
YET. 
BUT THE COMPANY SPENT UPWARDS 
OF $6 BILLION ON CONTENT. 
AND I'M JUST WONDERING HOW MUCH 
OF THAT $6 BILLION IS GOING TO 
YOU? 
>> A LOT OF IT. 
I'M GETTING TO MAKE A SHOW AND 
APPLE HAS BEEN FANTASTIC. 
>> IS HIT RECORD INVOLVED IN 
ANY WAY? 
>> NO. 
OTHER THAN ALWAYS WHENEVER I'VE 
DONE STUFF IN CONVENTIONAL SHOW 
BUSINESS, IT HAS REALLY 
IMPACTED HIT RECORD. 
BECAUSE PROBABLY IF I WEREN'T 
IN CONVENTIONAL SHOW BUSINESS, 
YOU WOULDN'T BE HAVING SOME 
DUDE THAT RAISED A SERIES A 
SITTING HERE TALKING TO ALL OF 
YOU. 
>> DON'T SAY THAT. 
MY FINAL QUESTION IS WHY APPLE? 
I'M SURE THIS WAS SHOPPED 
AROUND. 
I DON'T KNOW HOW INVOLVED YOU 
WERE IN THAT DECISION. 
WHY IS APPLE A GOOD PROSPECT 
FOR SOMETHING LIKE MR. 
MCCORMICK. 
>> WHEN APPLE DROPS A SHOW, THE 
REACH IS GOING TO BE REALLY 
INCREDIBLE. 
AND I THINK IT'S GOING TO BE 
REACHING, I THINK THERE IS A 
LOT OF OVER LAP IN THE CULTURE 
OF WHAT APPLE IS AND APPEALS TO 
TO MY AUDIENCE IS AND WHO HIT 
RECORD AUDIENCES IS. 
THERE ARE NOT ANY OTHER TECH 
GIANTS THAT ARE MAKING GARAGE 
BAND. 
APPLE HAS A HISTORY OF MAKING 
THE BEST CREATIVE TOOLS EVER. 
AND THAT IS EXACTLY WHO I WANT 
TO BE CONNECTING WITH. 
I DO THINK THERE IS EXCITING 
OVER LAP BETWEEN THAT AND OUR 
TARGET FOR HIT RECORD. 
>>  JOE, THANK YOU SO MUCH. 
>> THANK YOU. 
>>> ALL RIGHT. 
SO ON THE EXTRA CRUNCH STAGE 
RIGHT NOW WE HAVE A PANEL 
CALLED COULD THE U.S. 
GOVERNMENT BE YOUR NEXT 
INVESTOR. 
GOVERNMENT HAS A BUNCH OF OUR 
MONEY. 
IT'S WITH STEVE ASAKOWITZ. 
HERE ON THE MAIN STAGE WE ARE 
GOING TO BE TALKING A LITTLE 
BIT ABOUT GETTING TO IPO'S. 
WITH THAT I WOULD LIKE YOU TO 
WELCOME OUR NEXT GUESTS FROM 
BOX COFOUNDER CEO AND CHAIRMAN 
AARON LEVIE AND FROM PAGER DUTY 
JENNIFER TEJADA. 
>>> FOLLOWING A MOVIE STAR. 
>> YEAH. 
>> OBVIOUSLY NOW IS THE TIME TO 
TALK ABOUT ENTERPRISE SOFTWARE. 
>> NOW IT'S GOING TO GET HOT. 
>> IT'S DEFINITELY THE ACT TO 
BE FOLLOWING. 
>> TOTALLY. 
NOBODY IS LEAVING SO WE WILL BE 
FINE. 
>> STAY IN, PLEASE. 
WE'RE TALKING ABOUT, WE'RE 
GOING TO TALK ABOUT SASS 
MULTIPLES. 
>> I WAS ACTUALLY THINKING THIS 
WOULD BE FINE. 
WE WILL TALK ABOUT IPO'S IN 
2019 WILL BE A GREAT YEAR FOR 
IPO'S. 
WE WILL TALK UBER AND LYFT AND 
HOW GREAT THEY ARE DOING. 
AND THAT JUST DIDN'T QUITE 
HAPPEN. 
WHAT HAPPENED THIS YEAR? 
>> WHY ARE YOU LOOKING AT ME? 
>> I WOULD SAY ACTUALLY I WOULD 
SAY THIS TALE OF TWO STORIES ON 
THE IPO SIDE. 
YOU HAVE I THINK COMPANIES THAT 
WERE PREVIOUSLY VALUED ON A 
PURE REVENUE MULTIPLE. 
IN THE PRIVATE MARKET. 
THAT ULTIMATELY DIDN'T 
TRANSLATE INTO REVENUE 
MULTIPLES. 
AND COMPANIES LIKE PAGER DUTY 
WHERE YOU ARE SEEING PRETTY 
DURABLE BUSINESS MODELS THAT 
TRANSLATE VERY WELL INTO THE 
PUBLIC MARKET AS SOFTWARE 
BUSINESSES. 
I THINK YOU HAVE TWO VERY 
DIFFERENT IPO STORIES AND 
PUBLIC MARKET STORIES 
>> SURE. 
THE STOCK PRICE DIDN'T QUITE 
RISE OVER THE LAST YEAR. 
>> FOR WHAT? 
YES. 
>> ALL OF THEM, BASICALLY. 
>> AS THE MOST RECENT IPO 
SHOULD TALK ABOUT THIS, I THINK 
WE HAVE TOO MUCH OF A FIXATION 
ON THE IPO MOMENT. 
AND VERSES JUST BUILDING 
DURABLE BUSINESS MODELS AND HOW 
DID THEY END UP TRANSLATING 
INTO VALUATIONS. 
THE VALUATION YOU GET AT AN IPO 
IS DUE TO A VARIETY OF FACTORS. 
WHAT DID THE BANKERS PRICTHINGS 
AT? 
I WOULD MORE LOOK AT 
SUSTAINABLE TRENDS ON HOW ARE 
THESE BUSINESSES BEING VALUED 
AND PERFORMING? 
>> I THINK IT'S IMPORTANT TO 
THINK OF THE IPO'S AS THE 
BEGINNING, NOT THE END. 
WE ALL LIVE IN SILICON VALLEY, 
KIT BE AN ECHO CHAMBER AND YOU 
TALK ABOUT EXITS ALL THE TIME. 
IPO IS AN ENTRANCE. 
IT'S PART OF A BEGINNING OF A 
LONG JOURNEY. 
FOR A COMPANY YOU WANT TO BUILD 
A LEGACY AROUND. 
IT IS A MOMENT. 
IT IS PART OF, IT'S THE START 
OF YOU REALLY SHARING A 
NARRATIVE BACKED BY FINANCIAL 
DATA TO HELP PEOPLE UNDERSTAND 
YOUR CURRENT BUSINESS, THE 
POTENTIAL FOR YOUR BUSINESS, 
THE MARKET YOU ARE IN. 
ET CETERA. 
I THINK WE TEND TO TALK ABOUT 
IT, IT'S THE BE ALL, END ALL. 
I THINK IT'S REALLY IMPORTANT 
TO THINK ABOUT WHY, WHY ENTER 
THE PUBLIC MARKETS? 
WHAT ARE YOUR MOTIVATIONS AND 
REASONS FOR GOING PUBLIC? 
AND IN OUR CASE, A BIG PART OF 
THE REASON WE WENT PUBLIC IS TO 
EXTEND OUR BRAND PLATFORM. 
PAGER DUTY IS A TECHNICAL 
COMPANY. 
IT'S A PLATFORM FOR REALTIME 
UNPLANNED WORK THAT IS WELL 
UNDERSTOOD BY THE DEVELOPER. 
BUT LESS WELL UNDERSTOOD BY 
YOUR TRADITIONAL GENERALIST 
FINANCIAL INVESTORS OR EVEN 
RETAIL INVESTORS. 
AND SO FOR US, IT WAS ABOUT 
GETTING THE STORY OF PAGER DUTY 
TO EVERY ENTERPRISE, EVERY 
BUSINESS, EVERY MODERN WORKER 
ON THE PLANET AND HELPING THEM 
UNDERSTAND HOW WE CAN CHANGE 
THE WAY THEY WORK. 
HOW TO IMPROVE THE FACT THAT 
MOST OF THE WORK THAT HAPPENS 
TO YOU DURING A DAY NOW IS 
UNPLAN THED. 
SOMETHING BREAKS DOWN BECAUSE 
OF ALL THE COMPLEX TECHNOLOGY 
SITTING BEHIND IT. 
AND BEING ABLE TO SORT OF TAKE 
A TECHNICAL PRODUCT AND DISTILL 
THAT NARRATIVE DOWN INTO 
SOMETHING THE FINANCIAL 
COMMUNITY COULD UNDERSTAND WAS 
A REALLY IMPORTANT PARTOVER OUR 
JOURNEY. 
BUT IT ALSO WAS A STORY THAT 
WAS EASIER TO TELL WITH THE 
NUMBERS. 
WHEN WE WERE PRIVATE AND WE 
WEREN'T SHARING THAT 
INFORMATION, PEOPLE WOULD SAY 
LITTLE PAGER DUTY. 
WHAT IS THAT LITTLE COMPANY DO? 
SO WHEN WE ACTUALLY CAME OUT 
AND SHARED OUR BUSINESS MODEL, 
WHICH TO AARON'S POINT AN 
ENTERPRISE BUSINESS MODEL IS 
DIFFERENT THAN A CONSUMER APP 
BUSINESS MODEL. 
WE SHOULDN'T TRY TO COMPARE THE 
GROSS MARGINS BETWEEN THE TWO. 
BECAUSE IT'S AN ENTIRELY 
DIFFERENT BUSINESS MODEL. 
>> BUT THE PAGER DUTY STORY HAS 
GOTTEN A LOT MORE COMPLICATED 
OVER THE YEARS TOO. 
FROM BEING THIS NOTIFICATION 
PLATFORM, TO BEING THE REALLY 
COMPLEX, REALTIME, OPERATING. 
>> I THINK THE TECHNOLOGY IS 
COMPLEX. 
THE STORY IS SIMPLE. 
TO DETECT AND UNDERSTAND ISSUES 
THAT WERE TAKING PLACE. 
INSTEAD OF WAITING FOR A PERSON 
TO FEEL THE PAIN AND RAISE THE 
TICKET OR CALL CUSTOMER 
SUPPORT. 
TO REALLY CONSOLIDATE THAT 
DETECTION PERIOD. 
WE HAVE BUILT ON TOP OF THAT 
PLATFORM OF INTELLIGENTLY 
ROUTEING THE MOST IMPORTANT 
INSIGHTS TO THE RIGHT PEOPLE IN 
THE ORGANIZATION. 
SO WE DON'T HAVE THIS SITUATION 
WHERE CUSTOMERS CAN'T USE THEIR 
PRODUCT OR SERVICE OR CAN'T 
ORDER THEIR COFFEE. 
AND YET IT WILL TAKE IT FOUR 
HOURS TO FIGURE WHO THEY SHOULD 
HAVE ON THE CALL. 
THERE IS A LOT OF COMPLEXITY 
THAT SITS BEHIND THAT IN TERMS 
OF MANAGING 
CONTRIBUTINGARCHITECTURE. 
PEOPLE ARE IN DISTRIBUTED 
TEAMS. 
BUT AT THE END OF THE DAY WHAT 
YOU'RE TRYING TO DO IS CLOSE 
THE GAP BETWEEN THE CUSTOMER 
EXPERIENCE, THE PERFECT 
CUSTOMER EXPERIENCE YOU WANT TO 
DELIVER, AND THE TECHNOLOGY 
OUTCOMES YOU NEED TO STOMACH 
ACHE IT HAPPEN EVERY TIME, ALL 
THE TIME. 
>> LET'S TALK ABOUT GETTING TO 
THAT POINT WHERE YOU GET TO 
TELL THAT STORY. 
YOU CAME IN WITH THREE YEARS 
FOR THE IPO. 
AS THE COO. 
WHAT DID YOU HAVE TO DO TO GET 
THE COMPANY READY TO GET TO 
THAT POINT? 
>> IT'S FUNNY, WE TALK A LOT 
ABOUT GETTING THE NARRATIVE 
READY AND THE ROAD SHOW. 
GETTING A COMPANY READY FOR THE 
PUBLIC MARKETS IS ABOUT 
UNDERSTANDING YOUR BUSINESS. 
UNDERSTANDING THE PREDICT ACT 
OF YOUR BUSINESS. 
WHERE THE STRENGTHS ARE, THE 
WEAKNESSES ARE. 
WE SPEND A LOT OF TIME AS 
EXECUTIVES WITH OUR BOARDS 
THINKING ABOUT, DO I HAVE 606 
DOWN? 
WILL I GET THROUGH THE AUDIT? 
DO I HAVE TWO YEARS OF AUDIT 
FINANCIALS? 
WHAT I SHOULD BE TALKING ABOUT, 
DO I HAVE THE RIGHT LEADERSHIP 
TEAM FOR THE NEXT 3-5 YEARS. 
HAVE I FOUGHT THROUGH HOW A 
COMPETITIVE LANDSCAPE WILL 
EVOLVE? 
DO I HAVE THE RIGHT PEOPLE IN 
THE RIGHT PLACES? 
WHAT IS MY STRATEGIC WORK FORCE 
PLAN LOOK LIKE? 
HAVE I PRIORITIZEDTH RIGHT 
OPPORTUNITY? 
EXPERIMENTATION CAN BE A LITTLE 
CHALLENGING. 
SO GETTING READY IS ABOUT THE 
LEADERSHIP, ABOUT TEAM 
READINESS, ABOUT DO YOU REALLY 
UNDERSTAND AND CAN YOU SEE THE 
LEADING INDICATORS IN YOUR 
BUSINESS? 
AND NONE OF THOSE THINGS ARE 
EASY. 
AND WHAT WE TEND TO TALK ABOUT, 
IS THE STORY RIGHT? 
SO YOU HAVE TO DO ALL OF THOSE 
THINGS. 
THERE IS THE INSIDE THE COMPANY 
WORK THAT YOU ARE DOING TO TEST 
WHETHER OR NOT YOU ARE READY. 
I SAID TO OUR COMPANY ALL THE 
WAY THROUGH UP TO THE DAY WE 
LAUNCHED, WE CAN PULL THE PIN 
ON THIS AT ANY POINT IN TIME. 
AND I THINK WE SHOULDN'T BEMOAN 
PEOPLE WHO MAKE THAT DECISION. 
IT IS PROBABLY ULTIMATELY THE 
BEST DECISION FOR THE BUSINESS. 
I DON'T THINK THERE SHOULD BE A 
TON OF SHAME THINKING I HAVE 
TAKEN ANOTHER LOOK. 
NEW INFORMATION IS AVAILABLE TO 
ME NOW, WE ARE NOT GOING TO DO 
THIS. 
WE WILL STAY PRIVATE. 
>> WE'VE GOT SOMEBODY HERE WHO 
SPENT A LITTLE TIME THINKING OF 
IT. 
>> I AM THAT CASE STUDY. 
WE DID PULL THE PIN INITIALLY. 
WE DID A FILING AND IT TURNED 
OUT THAT OUR VIEW OF OUR WAS 
DIFFERENT. 
AND ANY TIME YOU HAVE THAT 
ASYMMETRY WHERE YOUR CASH BURN 
IS MAYBE MORE IMPACTFUL THAN TO 
WHAT INVESTORS WERE THINKING, 
THAT BECOMES A CHALLENGE. 
AND THEN WE GOT HIT BY A PUBLIC 
MARKET CORRUPTION. 
SO NOT A GOOD TIME TO ISSUE A 
KNEW FILING. 
SO WE PAUSED AND SAID, WE'RE 
GOING TO GET THE BUSINESS IN A 
MUCH BETTER STATE. 
SHOW BETTER FINANCIAL PICTURE 
AND DRIVE AWAY MORE ON THE CASH 
FLOW FRONT. 
BUT IT CAN BE TOTALLY 
CHALLENGING INSIDE THE 
ORGANIZATION. 
WE ENDED UP PAUSING OUR FILING 
AND STAYED EFFECTIVELY AND 
PRIVATE ANOTHER TEN MONTHS. 
LONGER THAN WE EXPECTED. 
AND THE RIGHT TIME TO TWO 
PUBLIC IS WHEN YOU HAVE THE 
TEAM TO BE ABLE TO GO AND DRIVE 
A PUBLIC BUSINESS. 
I THINK WHAT WE HAVE SEEN IN 
RECENT CASE STUDIES OR EXAMPLES 
IS WHERE ON THE MASKED BY THE 
PRIVATE MARKET STORY, COMPANIES 
WE'RE NOT OPERATING WITH THE 
LEVEL OF RIGOR OR EFFICIENCY OR 
ECONOMICS THAT THE PUBLIC 
MARKET WOULD BE ABLE TO GO IN 
VALUE AND MAKE SENSE OF. 
I THINK THE LESSON FOR ANY 
ENTREPRENEUR OR FOUNDER IS, THE 
NUMBERS ARE NOT GOING TO LIE. 
AND YOU HAVE TO MAKE SURE THE 
BUSINESS MODEL, THE 
FUNDAMENTALS OF THE BUSINESS 
MODEL ARE AS STRONG AS 
POSSIBLE. 
THAT IS WHY EVERYONE HAS READ 
OR RETWEETED. 
THE FRED WILSON PIECE THIS 
WEEK. 
BEN THOMPSON AROUND WHAT IS A 
SOFTWARE COMPANY AND WHAT IS 
NOT A SOFTWARE COMPANY? 
IT'S LESS INTERESTING TO DECIDE 
WHAT IS A SOFTWARE COMPANY AND 
MORE INTERESTING WHAT IS A 
BUSINESS MODEL. 
AND THE ONLY REASON WHY YOU 
CARE ABOUT GROWTH MARGIN, IT 
EVENTUALLY CHANGES INTO CASH 
FLOW. 
SO WHAT AND HOW SHOULD WE BE 
VALUING THEM AND DO YOU THINK 
ABOUT THEM? 
I THINK WE HAVE BROADLY SAID AS 
EVERY COMPANY WILL BE A TECH 
COMPANY. 
BUT THAT IS NOT ACTUALLY 
ACCURATE. 
EVERY COMPANY MIGHT BE A TECH 
ENABLED COMPANY BUT 
>> YOU HAVE TO THINK ABOUT 
OPERATING THEM IN A DIFFERENT 
WAY. 
>> WHERE WOULD YOU DRAW THE 
LINE BETWEEN A TECH COMPANY AND 
A COMPANY THAT USES TECH? 
>> I THINK WE TALK ABOUT TOO 
MUCH DRAWING THE LINE. 
IF YOU COULD USE TECHNOLOGY 
ENABLING YOUR CUSTOMER 
EXPERIENCE. THANKFULLY, YOU ARE 
TECH ENABLED COMPANY. 
AFTER THAT, WE SHOULD MOVE FROM 
THAT IDEA TO THE IDEA IT MEANS 
SOMETHING FOR YOUR COMPANY THAT 
IS DIFFERENT. 
IF YOU HAVE A SUBSCRIPTION 
REVENUE STREAM? 
IS IT ONE OF A HIGH GROSS 
MARGIN? 
WHAT IS THE STICKINESS OF THE 
CUSTOMER BASE AND WHAT ARE YOUR 
RETENTION RATES AND DO YOU HAVE 
A MODE THAT SOFTWARE IS 
ACTUALLY APPLYING TO AND 
INCREASING? 
THESE ARE THE THINGS THAT 
DEFINE WHETHER YOUR BUSINESS 
MODEL IS ON THE SOFTWARE 
CONTINUUM OR ON THE TRADITIONAL 
BUSINESS CONTINUUM? 
BOTH CAN BE FANTASTIC BUT THEY 
ARE RUN DIFFERENTLY AND THE 
CASH FLOWS ARE DIFF -- 
GENERATED IN DIFFERENT WAYS. 
YOU HAVE TO RUN IT AND AN 
APPROPRIATE MATTER. 
WE WORK IN THINKING THE TECH 
WOULD MASK THE UNDERLYING 
ECONOMICS OF THE BUSINESS MODEL 
AND IT DOESN'T. 
IT IS CUSTOMER EXPERIENCE AND 
IT DOESN'T CHANGE YOUR BUSINESS 
MODEL. 
>> I'M ASKED THAT A LOT BY CEOS 
THINKING ABOUT GETTING READY TO 
GO PUBLIC. WHO IS YOUR 
PLAYBOOK? 
INSTEAD OF THE PLAYBOOK, YOU 
NEED TO THINK ABOUT WHAT YOUR 
BUSINESS LOOKS LIKE AND WHAT 
ARE THE KEY INDICATORS OF THE 
BUSINESS YOU WANT TO MARKET TO 
UNDERSTAND? 
HOW DO YOU DESCRIBE YOUR 
BUSINESS SO THE MARKET HAS AN 
OBJECTIVE UNDERSTANDING OF WHAT 
THE UPSIDE AND THE RISK IS? 
THAT IS ONE OF THE CHALLENGES 
OF THE IPO ROADSHOW. 
YOU ARE SELLING AT AT THE SAME 
TIME SETTING EXPECTATIONS. 
YOU WANT TO MAKE SURE THE 
MARKET UNDERSTANDS AND GETS 
EXCITED ABOUT IT, BUT THAT THEY 
DON'T ROTATE IN THEIR 
EXPECTATIONS. 
DEALING WITH HIGH EXPECT 
HAITIANS CREATES A LOT OF 
DOWNSTREAM DIFFICULTY. WE SAW 
THAT THIS YEAR FROM THE IPO. 
THERE WERE NUMBERS AND HIGH 
EXPECTATIONS AT THE FRONT HALF 
OF THE YEAR AND THE BACK HALF 
OF THE YEAR HAS BEEN DIFFERENT. 
THAT IS LITERALLY DRIVEN BY THE 
ENVIRONMENT WITH THE CHINA 
TARIFF WHARVES AND THE 
CHALLENGES EVERY DAY THAT OF 
CREATED VOLATILITY IN THE 
MARKET AS WE THINK ABOUT WHAT 
IT MEANS TO BE IN THE LONGEST 
BULL RUN IN THE HISTORY OF 
MANKIND. 
RIGHT? 
SO, THAT'S ANOTHER THING I 
WOULD SAY TO EXECUTIVES. YOU 
HAVE TO BE MENTALLY READY FOR 
THE EXTERNALITIES THAT YOU 
CANNOT CONTROL AND THAT YET 
PEOPLE WILL EXPECT YOU TO BE 
ABLE TO EXPLAIN THEM. 
>> YOU DEALT WITH THAT LAST 
WEEK, I THINK. 
YOU HAD NEWS ON MONDAY AND I 
REMEMBER YOU WRITING ABOUT IT 
AND YOU DEALT WITH IT THE SAME 
DAY. 
>> YOU PLAY THE LONG GAME. 
I'M GOING TO BE HERE IN FIVE 
YEARS AND 10 YEARS AND I'M 
BUILDING A BUSINESS THAT I 
THINK WILL CHANGE THE WAY 
PEOPLE WORK ALONGSIDE ERIN'S 
BUSINESS AND OTHERS. 
THE WAY I THINK ABOUT IT IS 
THAT I KNOW FOR MYSELF AND I 
TRY TO TRANSLATE IT TO MY 
EMPLOYEES THAT WE COULD HAVE 
THE BEST DAY AT WORK IN THE 
WORST DAY ON THE STOCK MARKET. 
AND LIKEWISE THE WORST DAY AT 
WORK IN THE BEST DAY ON THE 
STOCK MARKET. 
THE TWO THINGS ARE NOT 
WURLITZER. 
SO THERE IS NOT A TON OF 
EMPATHY FLOWING AROUND. 
YOU HAVE TO THINK ABOUT THE 
BUSINESS AND STAY FOCUSED ON THE
LONG GAME AND MAKE SURE THAT 
YOU MANAGE THE RIGOR OF THE 
OPERATION. 
>> YEAH, I THINK THAT IN FRED'S 
PIECE THIS WEEKEND, IT'S ALL 
THEORETICAL UNTIL YOU GO 
PUBLIC. 
AS A PRIVATE COMPANY, YOU MORE 
OR LESS CONTROL TO A HIGH 
DEGREE YOUR EVALUATION. 
YOU GET TO CHOOSE WHEN YOU TAKE 
FUNDING AND THAT'S WHERE THE 
TURNS ARE AT. 
WHAT ARE THE BEST ONES? 
>> RIGHT, SO IT IS A VERY 
COMPANY FRIENDLY MARKET IN 
TERMS OF THE NARRATIVE AND 
BEING ABLE TO ENSURE YOU HAVE 
THE RIGHT STORY FOR EMPLOYEES 
AND THEN AGAIN WE HAVE MANY 
PRIVATE COMPANIES THAT HAVE 
PERFECTED THE ART OF DRIVING 
THAT. THE MOMENT YOU ARE A 
PUBLIC COMPANY, WITHIN 30 
SECONDS OF PRESSING THE BUTTON 
AND LAUNCHING THE MARKET WHICH 
DOES EFFECTIVELY LAUNCH THE 
MARKET, YOU PRESS THE BUTTON.
>> YOU GO TO PRESS THE BUTTON.
>> I WAS INFORMED THAT EVEN IF 
I FELL OFF THE PODIUM, THEY 
WOULD STILL LAUNCH THE MARKET 
AND I FELT LIKE I HAD LESS 
CONTROL OF THE WHOLE ECONOMY 
THAT I HAD HOPED FOR ON OUR IPO 
DAY. 
BUT I WOULD SAY THAT THE MOMENT 
THAT YOU GO PUBLIC, WITHIN 
SECONDS, OTHER PEOPLE CONTROL 
YOUR VALUATION WITH EVERY 
SINGLE TRANSACTION. 
SO, THEY WILL BE DRIVING WHAT 
YOUR EMPLOYEES OR WHAT THE 
MARKET THINKS OF AS YOUR 
VALUATION FOR A VARIETY OF 
FACTORS THAT HAVE NOTHING TO DO 
WITH WHAT YOU DO INTERNALLY. 
IN MANY CASES THEY ARE DRIVEN 
INTERNALLY. 
I AM A FAN OF THE MARKET 
BECAUSE IT'S REALITY AND HOW 
YOUR VALUE -- MAYBE YOU REACH 
YOUR MONTHLY QUARTERS AND THERE 
IS A DIFFERENTIAL AND YOU WORK 
TO MAKE SURE THE DIFFERENTIAL 
IS AS LIMITED AS POSSIBLE. 
>> AND TO BE CLEAR, THERE ARE 
BENEFITS OF RENOVATING AND THE 
MARKET. 
WE HAVE ONE THIRD OF THE 
FORTUNE 500. I THINK IT IS 
IMPORTANT FOR THE LARGE 
CUSTOMERS TO UNDERSTAND WE ARE 
A VIABLE BUSINESS THAT WILL BE 
AROUND A LONG TIME AND IS 
COMPLIANT. 
GOING THROUGH THE IPO PROCESS 
IS DEMONSTRATING YOUR METAL AND 
YOU CAN BE A PARTNER. 
THE IPO PROCESS CAN BE FUN TOO. 
IT IS A RALLYING CRY. 
>> DID YOU HAVE FUN? 
>> I DID. THERE'S A HIGH LEVEL 
OF CURIOSITY AND BREAKING THEM 
DOWN, ETC.
. FOR US, THE CHALLENGE WAS 
TELLING A TECHNICAL STORY TO A 
NON-TECHNICAL AUDIENCE AND 
STILL BEING ABLE TO REFINE THE 
VALUE PROPOSITION IN HOW PEOPLE 
UNDERSTAND IT. THAT THE 
FINANCIAL ANALYST INVESTORS ARE 
PATTERN MATCHERS. YOU USE UBER 
FOR THIS OR THE BOX FOR THAT. 
THE CHALLENGES WHEN YOU ARE 
CREATING A CATEGORY THAT THERE 
IS THAT MUCH MORE ONUS ON YOU 
TO REALLY HELP THEM UNDERSTAND 
THE PROCESSES THAT YOU ARE 
SOLVING AND WHO YOU ARE SOLVING 
THEM FOR AND WHY YOU ARE 
UNIQUELY POSITIONED TO SERVE 
THE MARKET. 
WE ARE ON A JOURNEY OF 
LEARNING. 
I THINK THE PEOPLE IN THE 
INDUSTRY UNDERESTIMATE THE 
OPPORTUNITY WITH HOW EARLY 
THESE MARKETS ARE. 
NO, DIGITAL OPERATIONS AND REAL-
TIME WORK IS DECENT, BUT NO ONE 
HAS HEARD OF IT AND IT'S 
UNFAMILIAR. YOU HAVE TO 
CONVINCE PEOPLE OF THE CATEGORY 
OF THE PRODUCT REVIEW AND 
LEADERSHIP. 
IF YOU LIKE A CHALLENGE, THAT 
IS FUN. IF YOU WANT IT ON A 
PLATE, THEN PROBABLY NOT SO 
MUCH. 
>> DO YOU AGREE?
>> YEAH, THE THING I GET 
EXCITED ABOUT WHERE YOU THERE 
YOU LOOK AT ZOOM MORE SLACK, A 
LOT OF TIMES WE HAVE THOUGHT 
ABOUT DISRUPTION AS, OKAY I'M 
TAKING THE CURRENT MARKET TO 
MAKE IT MORE EFFICIENT, FASTER, 
CHEAPER AND A WAY THAT ONLY WE 
CAN DO. 
WHAT WE UNDERESTIMATE IS THAT 
WHEN YOU DO THOSE THINGS, HOW 
MUCH BIGGER IS THE MARKET? 
NOT TO X, THREE X AND SOMETIMES 
NOT EVEN 10 X. WHEN YOU THINK 
OF SOMETHING LIKE PAGER DUTY 
WHEN ONLY A SMALL SET OF LARGE 
ENTERPRISES IN THE WORLD HAD 
THEIR OPERATIONS FULLY ATTUNED 
AND FULLY AUTOMATED WITH ALL OF 
THE RIGHT ALERTS AND 
NOTIFICATIONS AND THE MACHINE 
AROUND WHAT IS GOING ON. 
IT WOULD BE THE COMPANIES THAT 
COULD AFFORD MILLIONS OF DOLLARS
OF ENTERPRISE SOFTWARE PROJECTS 
INSIDE THEIR DATA CENTERS. 
THEN HE MOVED WHERE ANY 
DEVELOPER ON THE PLANET CAN USE 
THAT TECHNOLOGY. WE ARE TALKING 
MAYBE 100 OR 1000 AND WE ARE 
INSANELY EARLY. WHEN YOU LOOK 
AT THE NUMBERS OF CUSTOMERS 
THAT ALL OF US COLLECTIVELY 
WORK WITH, WE ARE IN THE 
EARLIEST OF INNINGS IN TERMS OF 
WHAT THE CLOUD WILL BE ABLE TO 
DO IN TERMS OF BUSINESSES 
GLOBALLY AND MORE OF THE END-
USER ADOPTION THAT WILL HAPPEN 
IN THESE ORGANIZATIONS. 
I THINK THE BUSINESS MODELS WE 
ARE SEEING AS THE NEXT ERA OF 
ENTERPRISE WHERE IT IS MORE 
BOTTOMS UP IN SELF-SERVICE AND 
THE AUDIENCE IS MEASURED IN THE 
TENS OR MILLIONS OF PEOPLE AS 
OPPOSED TO THE THOUSANDS OR 
TENS OF THOUSANDS, IT WILL 
CHANGE THE LANDSCAPE. 
>> IS THAT TRUE OF BOX AS WELL? 
>> I HOPE SO. 
>> WE GOT OUR START IN THE 
FIRST WAVE OF CLOUD AND WE WERE 
ABLE TO RIDE THE FIRST WAVE OF 
CLOUD AND MOBILE. WHEN I LOOK 
AT OUR DATA AND THE CUSTOMER 
BASE -- AS AN EXAMPLE FOR US, 
WE WILL DO $690 MILLION IN 
REVENUE THIS YEAR AND THE TOTAL 
SPEND THAT WE THINK WE CAN 
DISRUPT OR REPLACE IS 40 OR $50 
BILLION. IT IS SMALL RELATIVE 
TO THE SIZE OF THE MARKET AND 
MOST OF THE MARKET WILL MOVE TO 
THE CLOUD OVER THE NEXT 2-5 
YEARS. 
FOR ME, AND I HAVE THE GRAY 
HAIR TO PROVE IT, WE'VE BEEN 
DOING A LONG TIME AND HAVE THE 
TRACTION AND WE ARE STILL IN 
THE EARLIEST STAGES. 
WHEN WE GO TO BUSINESSES, 
AGAIN, GLOBALLY AND WE LOOK AT 
THE LEGACY WAYS OF WORKING THAT 
STILL EXIST IN THOSE 
ORGANIZATIONS THAT WILL MOVE TO 
THE CLOUD, WE ARE IN THE SINGLE-
DIGIT PERCENTAGE POINTS OF THE 
JOURNEY AT OUR STAGE. 
>> YOU THINK THAT'S TRUE? 
>> CAN YOU VALIDATE WHAT I JUST 
SAID ABOUT MY BUSINESS? 
>> WELL --
>> YOU HAVE TO BE SUPER 
OPTIMISTIC BE IN EITHER OF OUR 
JOBS. 
>> COMPLETELY. AS A CEO, 
EVERYBODY TEST YOUR CONVICTION 
ALL THE TIME. 
WHETHER YOUR FAMILY OR THE 
BUSINESS, ETC.
. THERE IS SOMETHING NEW AND 
FRESH EVERY TIME YOU OPEN YOUR 
MOUTH. 
SOMETHING NEW AND SOMETHING 
BETTER AND YOU HAVE TO HAMMER 
AWAY AT THE SAME FUNDAMENTALS 
BECAUSE MOST ADULTS CAN'T LEARN 
SOMETHING UNLESS THEY HEAR IT 
THREE OR SEVEN TIMES AND OVER 
AND OVER AGAIN, ANYWAY. 
YOU ARE FIGHTING TO BE 
CONSISTENT AND STAIN YOUR 
COURSE AND ADOPTING YOUR 
NARRATIVE AND ALIGNING WITH 
YOUR WAY OF THINKING. 
AGAIN, SOMETHING NEW, FRESH, 
SMART, AND FUN. 
IF YOU ARE THE CHIEF 
STORYTELLER, YOU WANT TO GIVE 
THE PEOPLE WHAT THEY WANT AND 
YOU CAN'T ALWAYS DO THAT. 
IT'S TREACHEROUS TO DO THAT, I 
THINK. 
>> THE BALANCE IS EXTREME 
OPTIMISM WITH A HIGH DEGREE OF 
RIGOR AND SCRUTINIZING THE 
BUSINESS BECAUSE YOU HAVE TO 
MAKE SURE THE GAP BETWEEN 
OPTIMISM AND REALITY IS AS 
LIMITED AS POSSIBLE AND AS 
NARROW AS POSSIBLE, BUT YOU 
HAVE TO BE OPTIMISTIC IN OUR 
JOBS BECAUSE OF THE MARKETS AND 
WHAT WE HAVE TO CREATE. 
FOR US, IT COMES WITH THE 
TERRITORY OF BEING A PUBLIC 
COMPANY. 
WE HAVE DIFFERENT INVESTORS 
WITH DIFFERENT VIEWS ON THE 
PROCESS. 
WE ACTUALLY AGREE WITH MOST OF 
THE VIEWS WE HEAR ABOUT, 
ESPECIALLY THE VIEWS OF DRIVING 
MORE OPERATING PROFIT AND GROWTH
. SO, I HAVE FOUND FEW TIMES 
WHERE WE HAVE BEEN MISALIGNED 
WITH INVESTORS. 
WE MAY HAVE DIFFERING VIEWS OF 
TIME FRAMES AS TO WHEN THEY 
WANT TO SEE RESULTS IN 
EXECUTION, BUT IN GENERAL, I 
THINK INVESTORS HAVE A PRETTY 
GOOD UNDERSTANDING OF AT LEAST 
OUR SIDE OF THE BUSINESS MODEL 
WITH CLOUD AND SAS. 
THERE IS THE SPEED AT WHICH 
THEY WANT TO GET TO TOP LEVEL 
SENATE MANY CASES WE SHARE 
THOSE VIEWS. 
>> YOU HAVE TO BE RESILIENT AS 
WELL AND GET YOUR TEAM READY TO 
BE RESILIENT. 
YOU GET YOUR EMPLOYEES READY TO 
BE RESILIENT AND STAVE FOCUSED 
ON WHAT IS AROUND THEM AS 
OPPOSED TO WHAT PEOPLE SAY THIS 
WEEK, LAST WEEK OR EVEN NEXT 
WEEK. 
IT CAN BE DISTRACTING. 
WE ARE IN A TIGHT TALENT MARKET 
AND WE NEED TO LOOK AT HOW 
UNIQUE THE OPPORTUNITIES ARE 
THAT WE CAN. 
MAYBE 5% OR 10% OF ALL SAAS 
COMPANIES . THE CHANCE OF 
FINDING A CAREER OPPORTUNITY 
SOMEWHERE ELSE IS LESS THAN A 
CHANCE OF BEING STRUCK BY 
LIGHTNING TWICE. 
>> REALLY? 
THAT IS A GOOD ANALOGY, I NEED 
TO BE CAREFUL. 
>> YOU COULD ALSO DIE BY 
SLIPPING IN THE SHOWER WHICH IS 
ANOTHER. 
>> THE CHALLENGE IS THERE IS A 
SHINY, OPTIMISTIC, NEW STORY ON 
EVERY STREET IN EVERY BLOCK. 
YOU HAVE TO BE REMINDING YOUR 
TEAM OF THE MISSION YOU ARE ON 
AND THE FACT YOUR VALUES HAVE 
NOT CHANGED AND THEN GOING 
PUBLIC DOES NOT CHANGE IT AND 
THAT IT'S A START. 
IF YOU LOOK BACK OVER TIME, 
PARTICULARLY IN SAAS AND CLOUD 
COMPANY, THEY HAVE CREATED FAR 
MORE VALUE  POST-IPO THAN THEY 
DID PRE-IPO. 
YET EMPLOYEES THINK THAT IPO IS 
THE EXIT AND THEY NEED TO FIND 
A NEW START UP. 
JUST LOOK AT THE DATA.
>> SO YOU HAVE TO DEAL WITH THE 
EMPLOYEES THAT WANT TO LEAVE?
>> CULTURE MATTERS AND IT'S A 
PRIORITY FOR THE ENTIRE 
LEADERSHIP TEAM AND GIVING BACK.
WE TOOK THE 1% PLEDGE TWO YEARS 
AGO COMMITTING 1% OF OUR 
EQUITY, 1% OF OUR PROFIT AND 1% 
OF EMPLOYEE TIME FOR NOT-FOR-
PROFIT IN THE COMING DAYS. 
FUNDING A BROWN $20 MILLION OF 
OPPORTUNITY FOR THE COMMUNITY 
AROUND US. TO ME, IS THESE 
KINDS OF THINGS THAT FULFILL 
THE MISSION OF THE EMPLOYEES 
YOU ARE WORKING WITH. 
>> AND, I THINK THE STRUGGLE WE 
ALL SHARE IN THAT MANY FOLKS IN 
THIS ROOM SHARE IS THAT WHEN 
YOU ARE BUILDING A COMPANY THAT 
STARTS PRIVATE AND IT'S GOING 
WELL AND GROWING AND MAYBE YOU 
DON'T HAVE EMPLOYEES THAT HAVE 
BEEN THROUGH DIFFICULT PERIODS 
BECAUSE YOU ARE PAST THAT 
POINT. 
OUR FIRST THREE OR FOUR YEARS 
OF THE COMPANY WERE THE HARDEST 
AND MOST GRUELING YEARS EVER. 
THERE WERE HUNDREDS OF TIMES WE 
COULD HAVE GONE OUT OF 
BUSINESS. 
YOU MAY HAVE PEOPLE COMING IN 
THAT DIDN'T EXPERIENCE THAT AND 
HAVE ONLY EXPERIENCED THE 
ROCKETSHIP. 
NOW WE NEED TO RUN THE BUSINESS 
AS A HEALTHY PUBLIC COMPANY AND 
IT'S IMPORTANT ON THE RIDE UP 
THAT YOU GET PEOPLE IN FOR THE 
RIGHT REASON. 
YOU GET THEM FOR THE CULTURE 
AND THE MISSION AND THE 
VALUATIONS AND THE PRIVATE 
MARKET STORIES, HOPEFULLY YOU 
ARE ABLE TO ABSTRACT THAT AWAY 
AS MUCH AS POSSIBLE FROM WHY 
PEOPLE ARE JOINING THE COMPANY 
AND WHAT THE MISSION IS YOU ARE 
DOING. 
AND, WHY PEOPLE ARE ALONG FOR 
THE RIDE. 
>> YOU HAVE TO BE READY FOR THE 
RIDE. 
THERE IS NO BUSINESS CLASS ON 
THE ROCKETSHIP. IT WILL BE 
BUMPY AND YOU MAY THROW UP, BUT 
IT WILL BE INTERESTING AND YOU 
WILL LEARN THE WHOLE TIME. 
>> THE ANALOGY IS SLIPPING IN 
THE SHOWER, WHICH WOULD YOU 
RATHER HAVE? 
>> NO ONE THREW UP ON STAGE, SO 
WERE WE ARE GOOD. 
>> [ LAUGHTER ]. 
>> WE ARE OUT OF TIME, THANK 
YOU. 
>> THANK YOU. 
>> PLUS. 
-- [ APPLAUSE ]. 
>> WE ARE ABOUT ONE HOUR IN, 
LET'S TAKE A TEMPERATURE OF THE 
ROOM. 
HOW ARE YOU FEELING? 
>> [ APPLAUSE ]. 
>> ALL RIGHT, MILDLY ENTHUSED. 
RAISE YOUR HAND IF YOU HAVE 
HEARD OF YOUTUBE. COME ON GUYS, 
I AM OUT HERE GIVING MYSELF TO 
YOU. 
THANK YOU KIERSTEN. 
PLEASE WELCOME TO THE STAGE, 
NUMBER TWO AT YOUTUBE. A WARM 
WELCOME PLEASE.
>> [ ♪
].
>> THANK YOU.
>> ABSOLUTELY, THANK YOU FOR 
BEING HERE. 
>> THANK YOU FOR HAVING ME. 
>> I MADE THIS INTERVIEW 20 
MINUTES AND ONE SECOND LONG. 
THAT'S A YOUTUBE JOKE. 
IF YOU ARE A YOU TUBER, YOU GOT 
IT. 
>> LET'S START WITH YOUTUBE 
MUSIC, LET'S START WITH THAT. 
>> IT'S A MAJOR PRODUCT THAT 
YOUTUBE HAS ANNOUNCED. WE WERE 
INFORMED WITH THE WAY PEOPLE 
USE THE PLATFORM. 
HOW DOES IT COMPETE AND HOW 
WILL IT BE WITH APPLE AND 
SPOTIFY? 
>> SURE. MUSIC HAS BEEN A CORE 
PART OF YOUTUBE REALLY SINCE 
THE DAYS OF THE FOUNDING OF THE 
PRODUCT AND WHEN THE PRODUCT 
WAS FIRST CREATED. LOTS OF 
USERS COME TO YOUTUBE TO 
DISCOVER NEW MUSIC AND LISTEN 
TO FAVORITE MUSIC. 
THAT IS ALWAYS BEEN A PART OF 
YOUTUBE. 
WE DECIDED TO LEAN INTO THAT 
AND FIND WAYS WE COULD SERVE 
THE MUSIC LOVER ON OUR 
PLATFORM. 
IT STARTED WITH THE IDEA OF, 
WHAT IF WE HAD ACTUALLY HAD A 
SUBSCRIPTION SERVICE THAT WAS 
BUILT FOR MUSIC LOVERS ON 
YOUTUBE. WE STARTED WITH 
SOMETHING CALLED MUSIC KEY 
WHICH SOME OF YOU MAY REMEMBER 
FOUR OR FIVE YEARS AGO. 
IT WAS A SERVICE HELD ON THE 
CORE APP. 
WHAT WE HAVE LEARNED FROM THAT 
WAS TWO THINGS. 
ONE IS THE MODE USERS ARE AND 
WHEN I LISTEN TO MUSIC ON 
YOUTUBE IS OFTEN DIFFERENT. 
IT IS LEANED BACK AND DRIVEN 
MORE THAN THE AUDIO THAN THE 
VIDEO ALTHOUGH VIDEO IS A PART 
OF IT. ALSO MUSIC LOVERS ON 
YOUTUBE LOVE THE REST OF 
YOUTUBE AND SO WE DESIGNED OUR 
YOUTUBE PREMIUM SUBSCRIPTION 
SERVICE WHICH IS A MUSIC 
SUBSCRIPTION SERVICE AND ALSO 
BRINGS THINGS LIKE BACKGROUND 
ADS AND ONLINE PLAY. 
THE REASON MUSIC LOVERS COME TO 
YOUTUBE ARE SEVERAL REASONS. 
ONE IS THE CATALOG THAT OTHER 
PLATFORMS MAY HAVE. IT GOES 
DEEPER WITH LIVE TRACKS OR 
BESIDE TRACKS. 
>> ACCESSES PART OF IT, RIGHT? 
THE CATALOG IS ALMOST ACHIEVING 
PARITY WITH SERVICES.
>> WHAT WE HAVE IS DRAMATICALLY 
DEEPER AND SOMETHING MUSIC YOU 
-- LOVERS HAVE TOLD US THEY 
LOVE OVER AND OVER AGAIN. 
IT'S OUR JOB TO DISCOVER THAT 
IN A WAY THAT'S EFFORTLESS AND 
EASY AND WHERE THEY LISTEN TO 
THEIR FAVORITE MUSIC AND 
ARTISTS AND ALSO DISCOVER NEW 
MUSIC ALONG THE WAY. 
AND BY THE WAY, SOMETHING WE 
THINK THAT IS UNIQUE TO THE 
YOUTUBE PLATFORM GIVEN OUR 
HERITAGE OF CONNECTING CREATORS 
WITH FANS IS A WAY TO CONNECT 
MUSIC LOVERS WITH THEIR 
FAVORITE ARTISTS TOO.
>> YOU HAVE SOME NEW PLAYLISTS 
ON YOUTUBE, WHAT IS THAT? 
>> THE MUSIC APP HAS BEEN OUT A 
COUPLE OF YEARS AND WE HAVE 
LAUNCHED THE PREMIUM SERVICE IN 
71 COUNTRIES. 
AS WE HAVE ROLLED IT OUT, WE 
HAVE LOTS OF FEEDBACK FROM USERS
ABOUT WHAT THEY WOULD LIKE TO 
SEE. 
ONE THING THE TELIS REPEATEDLY 
IS THEY LOVE THE FACT THAT 
THROUGH A COMBINATION OF THINGS 
LIKE MACHINE LEARNING AND HUMAN 
BEINGS THAT ARE MUSIC LOVERS, 
WE PUT ALL THIS GREAT MUSIC IN 
FRONT OF OUR USERS IN THE 
YOUTUBE MUSIC APP. 
SO, WHAT WE ARE ANNOUNCING 
TODAY IS BASICALLY TO RENEW 
WAYS FOR USERS ON THE MUSIC APP 
TO ENJOY AND DISCOVER NEW MUSIC
. SO, WE ARE INTRODUCING NEW 
PLAYLISTS ON THE PLATFORM. 
ONE WILL BE WHAT WE ARE CALLING 
THE DISCOVER MIX. 
IT'S A WAY TO TAKE YOUR 
PERSONALIZED PREFERENCES AND 
WHAT YOU LISTEN TO AND USE THAT 
AS A SEED TO DISCOVER NEW MUSIC 
ON THE PLATFORM. 
>> SO IT USES HISTORICAL DATA. 
>> IT USES THE YOUTUBE APP AS 
WELL AS THE MAIN APP AND THEN 
WE HAVE ANOTHER MIX WHICH IS 
NEW RELEASES. 
IT'S A WAY TO DISCOVER EVERY 
WEEK A NEW MUSIC PROMPT. IT'S 
PRIMARILY FRIDAYS AND IT'S A 
WAY TO DISCOVER NEW MUSIC WE 
THINK YOU WILL ENJOY BASED ON 
YOUR HISTORICAL REFERENCES. 
THEN REALLY SORT OF MAKING IT 
EFFORTLESS WHEN YOU REALLY WANT 
YOUTUBE TO BASICALLY PLAY MUSIC 
THAT WE KNOW YOU ARE GOING TO 
LIKE YOU TO HELP YOU DISCOVER 
NEW MUSIC AND ARTISTS ALONG THE 
WAY. WE FOCUS ON WHAT YOU TRULY 
LOVE WHICH IS YOUR MIX. 
YOU DISCOVER THE NEW RELEASES 
MIX AND YOUR MIX AND IT IS WAYS 
DIRECTLY ON THE HOME SCREEN 
THAT YOU WOULD BE ABLE TO DO 
MUSIC ON YOUTUBE.
>> WHAT IS THE DEFAULT 
LISTENING EXPERIENCE?
>> FOR THOSE OF YOU WHO MAY NOT 
KNOW, WE MERGED THE YOUTUBE 
PRODUCT ENGINEERING TEAMS WITH 
THE GOOGLE PLAY ENGINEERING 
TEAMS A FEW YEARS AGO. 
WE SAID WE WOULD COMBINE THE 
BEST OF THE PRODUCTS INTO WHAT 
WE WOULD CALL YOU TO MUSIC. 
AND, WE ARE WELL ALONG THE WAY 
AND THAT JOURNEY. 
YOUTUBE MUSIC IS AVAILABLE IN 
71 COUNTRIES AND WE CONTINUE TO 
ROLL IT OUT THROUGHOUT THE 
WORLD. 
BUT, WE ARE GOING TO ONLY SORT 
OF CUT OVER COMPLETELY TO YOU 
TO MUSIC WHEN WE KNOW WE HAVE 
SATISFIED ALL OF THE USE CASES 
THAT MANY OF THE USERS LOVED 
ABOUT GOOGLE PLAY MUSIC. 
THINGS LIKE SUPPORT YOUR MUSIC 
AND BEING ABLE TO PLAY MUSIC 
AND PLAY AUDIBLE FILES ON 
ANDROID DEVICES. 
TO BRING OVER THE WORK YOU DID 
IN TERMS OF YOUR FAVORITE 
PLAYLISTS, ETC. 
FROM GOOGLE MUSIC. THOSE ARE 
THE FEATURES WE WANT TO SUPPORT 
AS FIRST-CLASS CITIZENS OF THE 
YOUTUBE MUSIC APP.
>> DO YOU HAVE A TIMELINE? 
>> WE WILL BE DRIVEN BY THE 
BEST USE CASES AND WE WOULD 
LIKE TO DO IT IN THE FUTURE. 
WE WANT TO MAKE SURE WE NAIL 
THAT FOR THE GOOGLE PLAY MUSIC 
LOVERS BEFORE WE MAKE THAT. 
>> OKAY, COOL. 
LET'S SHIFT GEARS AND TALK 
ABOUT SOME OF THE OTHER CONTENT 
ON YOUTUBE CREATED BY A VAST 
ARRAY OF CREATORS. 
WHAT INTERESTING DEVELOPMENT 
RECENTLY HAVE YOU SEEN DEBUTED 
ON YOUTUBE AND ON NETWORK TV AT 
THE SAME TIME? 
HOW DID THAT DEAL COME 
TOGETHER?>> SO, LILY SANG HAS 
BEEN AN INCREDIBLY SUCCESSFUL 
YOUTUBE CREATOR AND HER STORY IS
AN AMAZING ONE. SHE STARTED TO 
TELL STORIES ABOUT HER OWN LIFE 
IN A VERY SORT OF HUMOROUS AND 
DOWN TO EARTH WAY. 
THEN, VERY CLEARLY, HER 
AUTHENTICITY AND PUTTING 
HERSELF OUT THERE CAME THROUGH, 
AS IT DOES FOR ALL SUCCESSFUL 
YOU TUBER'S. 
IT IS KIND OF CORE OF WHAT 
MAKES A SUCCESSFUL CREATOR ON 
YOUTUBE. 
SHE DEVELOPED A FOLLOWING OF 
MILLIONS AND OBVIOUSLY BECAME 
VERY POPULAR ON YOUTUBE AND 
THROUGHOUT THE INDUSTRY AND THE 
MEDIA CULTURE AS A RESULT. 
WHEN THEY WERE LOOKING FOR A 
REPLACEMENT FOR A HOST FOR THAT 
LATE-NIGHT SHOW, IT MADE SENSE 
IN A COUPLE OF WAYS. 
REALLY, NUMBER ONE IS LILY HAS 
A NATURAL WAY OF CONNECTING 
WITH AUDIENCES THAT IS CLEARLY 
APPARENT IF YOU SPEND FIVE 
MINUTES WATCHING HER. 
YOU CAN SEE THAT. 
ALSO BECAUSE OF THE NATURE OF A 
LOT OF THE LATE-NIGHT CONTENT, 
IN PARTICULAR, IS IT IS VIEWED 
NOT LITERALLY -- LINEAR ONLY 
WHEN IT IS BEING BROADCAST, BUT 
IT IS VIEWED SLICED UP AND IN 
CHUNKS WHEN IT'S AVAILABLE. 
THERE ARE YOUTUBE CHANNELS 
WHERE THEY GET BROAD 
DISTRIBUTION AND CONSUMPTION 
WHERE FANS CAN INTERACT AND 
COMMENT. SO, THAT ASPECT 
COMBINED WITH HER CONNECTION 
WITH FANS WAS A REASON SHE WAS 
A NATURAL CHOICE FOR THIS. 
SHE WAS ON TWO WEEKS AGO. 
>> IT LOOKS LIKE IT'S A HIT 
ALREADY. 
>> FOR THOSE YOU TUBER'S WHO 
DEVELOP A ROBUST AUDIENCE, HOW 
DO YOU STOP THEM FROM JUMPING 
SHIP TO A NETWORK? 
WHAT YOU OFFER THAT'S BETTER 
FOR THEM?
>>  I SPENT A LOT OF TIME 
TALKING TO YOUTUBE CREATORS. 
EVERY TIME I HAVE TALKED TO 
LILLY HERSELF, HER EXAMPLE IS 
ACTUALLY SOMETHING THAT CARRIES 
ACROSS TWO OTHER TOP  YOU 
TUBER'S LIKE HER. 
SHE KNOWS HER MOST ENGAGED AND 
PASSIONATE FANS ARE ON YOUTUBE. 
SHE TELLS US THAT REPEATEDLY. 
SHE FIRST LAUNCHED AND BROKE 
HER SHOW ON YOUTUBE BECAUSE 
THAT'S WHERE SHE KNOWS HER MOST 
AUTHENTIC FANS ARE AND SHE WILL 
BUILD ON THAT FAN BASE WITH HER 
NEW SHOW IN ALL OF HER OTHER 
PROJECTS. 
WHETHER A CREATOR LIKE HER OR 
OTHER CREATORS WHO GO ON TO 
THINGS LIKE IN A NEW BOOK, OR 
COUNTING A MAKEUP COMPANY. 
WE HAVE CREATORS WHO HAVE 
FOUNDED KITCHENWARE COMPANIES. 
THEY KNOW THE ESSENCE OF WHAT 
THEY DO IS THE CONTENT THEY 
PRODUCE ON YOUTUBE AND THE 
CONNECTIVITY THEY HAVE WITH 
THEIR AUDIENCE. 
THEY TELL US THAT IT'S 
ULTIMATELY THEIR HOME. 
IT'S NEVER ABOUT THEM GOING ON 
IN DOING SOMETHING NEW AND 
LEAVING YOUTUBE BEHIND. 
IT'S HOW DO THEY ENHANCE WHAT 
THEY DO ON YOUTUBE AND THE 
OPPORTUNITIES THAT COME ABOUT 
BECAUSE OF THEIR INCREDIBLE 
SUCCESS ON PLATFORMS LIKE 
YOUTUBE. 
>> OKAY, COOL. 
LET'S TALK A LITTLE BIT ABOUT 
-- WE WILL START IT OFF TALKING 
ABOUT THE WAY YOUTUBE USES 
MACHINE LEARNING AND EVEN CURE 
RATION.
>> ONE OF THE BIG FEARS IS 
BEING D MONETIZED. 
THEY SEE SOMETHING ON THEIR 
CHANNEL AND THERE IS AN 
ALGORITHM AND THEY CAN'T SELL 
IT TO INVESTORS. 
WHAT CAUSES A YOU TUBER TO BE D 
MONETIZED AND IS THERE A WAY TO 
BE MORE TRANSPARENT? 
>> ONE THING THAT'S GREAT ABOUT 
YOUTUBE IS THE MAGIC OF AN OPEN 
PLATFORM LIKE YOUTUBE. 
IT'S A PLACE WHERE ANYONE WITH 
A CREATIVE IDEA OR STORY TO 
TELL CAN CREATE AN IDEA AND 
SHARE IT WITH THE WORLD. THAT 
IS BEEN THE CASE SINCE THE 
FOUNDING OF YOUTUBE AND IT 
REMAINS THE SORT OF MAGIC 
BEHIND WHY YOUTUBE CREATORS 
HAVE ENJOYED THE SUCCESS THEY 
HAVE. THAT'S A CORE PIECE THAT 
WE WOULD NEVER WANT TO CHANGE. 
HAVING SAID THAT, WE'VE ALWAYS 
HAD A SET OF GUIDELINES THAT 
GOVERN THE CONTENT ALLOWED ON 
THE PLATFORM VERSUS NOT. 
THINGS LIKE HATE SPEECH AND 
HARASSMENT AND GRAPHIC VIOLENCE 
HAVE NEVER HAD A PLACE ON 
YOUTUBE AND WE WANT TO BE 
CRYSTAL CLEAR ABOUT THAT. WE 
TRY TO BE AS TRANSPARENT AS 
POSSIBLE ABOUT THOSE POLICIES. 
IN ADDITION TO THE COMMUNITY 
GUIDELINES, WE ALSO HAVE 
ADVERTISER GUIDELINES. 
AGAIN SOME -- THAT IS SOMETHING 
WE TRY TO BE TRANSPARENT ABOUT 
FOR ADVERTISERS RUNNING MEDIA 
CAMPAIGNS ON YOUTUBE. 
THOSE ARE THE SET OF RULES THAT 
GOVERN WHAT KIND OF CONTENT IS 
ELIGIBLE FOR MONETIZATION 
VERSUS NOT. 
WE WANT TO MAKE SURE WE DO IT 
IN A WAY THAT IT IS AS STABLE 
AS POSSIBLE FOR THEM. 
WE TRY TO PUBLISH THOSE RULES 
AND WE ALSO HAVE AN APPEALS 
PATH SO THAT IF CREATORS 
BELIEVE A VIDEO WAS WRONGLY D 
MONETIZED, THEY CAN APPEAL THAT
. THERE IS A TIME AND 
PROCESSING THAT APPEAL. 
THEN THERE IS A NEW PROGRAM 
WHICH IS BASED ON THE PREMISE 
THAT THE CREATORS THEMSELVES NO 
BEST ABOUT WHAT IS IN THEIR 
CONTENT. IT IS SELF 
CERTIFICATION WHERE THEY CAN 
TELL US WHAT'S IN THE VIDEO. 
WHETHER THE SWEARWORDS ARE 
CONTROVERSIAL CONTENT, THEY CAN 
TELL US THAT AHEAD OF TIME. 
WE CAN USE THAT IN A WAY TO 
TRUST THE CREATORS. 
OF COURSE, THERE ARE AUDITS AND 
IF SOMEONE VIOLATES THAT TRUST, 
THEY ARE PART OF THIS PROGRAM. 
WE WANT TO MOVE TO THAT TYPE OF 
A MODEL BECAUSE WE THINK IT IS 
TRANSPARENT AND STABLE FOR 
CREATORS AND IT ALSO MAKES 
ADVERTISERS KNOW WHAT IS 
RUNNING AND THEY ARE 
COMFORTABLE WITH THAT AS WELL. 
ONE OF THE THINGS THAT 
ADVERTISERS LOVE ABOUT YOUTUBE 
IS THE FACT IT IS DIFFERENT 
THAN OTHER PLACES SUCH AS 
TELEVISION AND WHAT HAVE YOU. 
AGAIN, IT'S THE AUTHENTICITY OF 
THE CREATORS. THE REASON 
ENGAGEMENT IS SO HIGH ON OUR 
PLATFORM IS THIS ENGAGEMENT. 
IT'S BECAUSE OF THE NATURE OF 
THE CONTENT. 
SOMETIMES IT'S EDGY BUT IT'S 
ALWAYS AUTHENTIC AND IT 
REPRESENTS CONTACT BETWEEN THE 
CREATORS SUCH AS LILLY SINGH 
AND HER FANS. 
>> I WOULD LOVE TO GET FROM YOU 
A WINDOW OF THE PROCESS WITH 
HOW YOU BUILD ALGORITHMS AND 
YOU DO CURRENT -- CURE RATION.
>> THEY PUBLISHED AWAY TO GET 
YOU D MONETIZED STRAIGHT OUT. 
THE VIDEOS WERE CAUGHT UP IN THE
ALGORITHMIC DRAGNET. CAN YOU 
TELL US HOW YOU COME TO THOSE 
DECISIONS INTERNALLY?
>> I WILL GIVE A GENERAL ANSWER 
IN TERMS OF HOW THIS WORKS IN 
TERMS OF A BROAD PHILOSOPHY 
STANDPOINT ON A PLATFORM LIKE 
YOUTUBE. 
IT'S A COMBINATION OF BOTH OF 
THOSE THINGS. 
SO, TO GIVE YOU A SENSE OF THE 
SCALE, WE HAVE ABOUT 500 HOURS 
OF CONTENT UPLOADED TO YOUTUBE 
EVERY SINGLE MINUTE OF EVERY 
DAY. 
IT IS ENORMOUS AND THE SCALE 
WITH WHICH WE HAVE TO ENFORCE 
OUR POLICIES ARE IN THE 
GUIDELINES AND IS QUITE LARGE. 
SO, WE HAVE TO USE MACHINE 
LEARNING ALGORITHMS AND 
CLASSIFIERS FOR WHAT MIGHT BE 
POLICY VIOLATION OR MAY OR MAY 
NOT BE SUITABLE FOR ADVERTISERS.
OFTENTIMES WE ALSO COMBINE THAT 
WITH HUMAN REVIEWS. 
WE ANNOUNCED A COUPLE OF YEARS 
AGO THAT WE WERE GOING TO SCALE 
UP TO 10,000 HUMAN REVIEWS. 
AND TO GIVE A CONCRETE EXAMPLE, 
YOU KNOW MACHINES ARE GOOD AT 
FINDING POTENTIAL CANDIDATES OF 
CONTENT THAT MAY VIOLATE 
POLICY. 
LET'S SAY IT IS VIOLENT 
EXTREMISM. THEY CAN IDENTIFY 
VIDEOS THAT DETECT GRAPHIC 
VIOLENCE. 
THEY MAY SEEM LIKE VIDEOS THAT 
MAY BE A TERRORIST ORGANIZATION 
WOULD PUT UP TRYING TO RECRUIT 
PEOPLE. BUT, ONLY HUMANS CAN 
MAKE THE DECISION IN TERMS OF 
WHETHER THAT VIDEO IS ACTUALLY 
DOING THAT OR NOT. 
>> OR MAYBE IT'S AN ACTIVIST 
SAYING THIS IS A BAD THING AND 
WE SHOULD WATCH OUT FOR THIS. 
>> IT DEPENDS ON THE CONTEXT OF 
THE VIDEO, ETC.. 
WE USE A COMBINATION OF MACHINE 
LEARNING AND HUMANS. WE TRY TO 
BE A STERN PARENTS ABOUT THE 
RESULT AS POSSIBLE. 
FOR EXAMPLE, IN OUR MOST RECENT 
TRANSPARENCY REPORT WHICH WAS 
THIS YEAR, WE SAID WE TOOK DOWN 
9 MILLION VIDEOS. IT SOUNDS 
LIKE A LOT AND IT'S A TINY 
FRACTION OF 1% OF THE 
ENGAGEMENT ON THE PLATFORM. 
OVER 80% OF THOSE VIDEOS, WE 
WERE ABLE TO REMOVE THROUGH A 
COMBINATION OF MACHINES AND 
HUMANS WITHOUT ANY EXTERNAL 
USER ACTUALLY SEEN THE VIDEOS. 
THAT, FOR US, IS A SUCCESS 
STORY. 
TO MAINTAIN OUR SYSTEM WHILE 
MAINTAINING THE MAGIC OF THE 
OPEN PLATFORM.
>> ONE THING THAT IS THE CRUX 
OF THIS DISSOCIATIVE -- 
DISCUSSION ABOUT SUPPORTABLE 
CONTENT AND POTENTIALLY THE 
PEOPLE IS WATCH NEXT. 
IT ALLOWS PEOPLE TO ESCAPE 
THROUGH TOPICS. 
I HAVE USED IT TO SKATE THROUGH 
HOW TO TOPICS OR HOW TO TO DO A 
PARTICULAR OBSESSION OF MINE AT 
THE MOMENT. MAYBE IT IS MODEL 
AIRPLANES OR SHOES OR WHATEVER. 
IT IS REALLY GREAT IN THOSE 
INSTANCES, BUT SOMETIMES YOU 
CAN KIND OF FALL INTO A RABBIT 
HOLE THAT GETS WORSE AND WORSE. 
ARE YOU FIGURING OUT HOW TO 
STOP THAT IF PEOPLE GET INTO 
AREAS WHERE THEY ARE ABOUT TO 
FLAG THE VIDEO? 
>> AND IN YOUR EXAMPLE TO 
ILLUSTRATE IT, THE VAST 
MAJORITY OF CONSUMPTION ON THE 
PLATFORM ARE THOSE TOPICS YOU 
LOVE. 
YOU KNOW, HELPING PEOPLE 
DISCOVER NEW TOPICS. THINGS 
LIKE YOUR FAVORITE LATIN MUSIC 
ARTIST OR AFRO BEAT ARTIST.  
YOU KNOW, CREATORS LIKE LILLY 
SINGH, OR ANOTHER CREATOR WHO 
JOINED ME  ON STAGE EARLIER 
THIS YEAR, MOLLY BURKE WHO IS 
BLIND BUT AN INSPIRATION TO 
YOUNG WOMEN AND GIRLS ALL 
ACROSS THE WORLD. THOSE TYPES 
OF STORIES ARE WHAT THE MAGIC 
OF YOUTUBE IS ALL ABOUT. 
BACK TO YOUR QUESTION, THAT IS 
WHAT USERS ARE DISCOVERING. 
WHEN WE LOOK AT THIS MORE 
CLOSELY, WE SEE LOTS OF USERS 
ARE RECOMMENDING CONTENT THAT 
YOU WOULD CALL MORE MAINSTREAM. 
SOMETIMES IT'S IN ANOTHER 
DIRECTION AND EVERY JOURNEY IS 
DIFFERENT. 
AND, ONE THING WE WANT TO AVOID 
IS SENDING USERS DOWN THE PATH 
TO MORE AND MORE EXTREME CONTENT
. ESPECIALLY WHEN THAT EXISTS 
ON OUR PLATFORM BUT IT IS 
BORDERLINE. MAYBE IT IS 
SPREADING HARMFUL MISINFORMATION
. SO, WE HAVE HAD A CONCERTED 
EFFORT THAT WE ANNOUNCED BACK 
IN JANUARY THAT WE ARE TRYING 
TO REDUCE RECOMMENDATIONS OF 
THAT TYPE OF CONTENT IN 
PEOPLE'S FEES, ETC. 
IT IS REALLY CHANGES AND 
IMPROVEMENTS THAT WE MAKE TO 
THE RECOMMENDATION ALGORITHMS. 
WE HAVE HAD 20 CHANGES SINCE WE 
ANNOUNCED THIS BACK IN JANUARY. 
AS A RESULT, THERE IS A 50% 
REDUCTION IN USER EXPORT IS 
YOUR TO WHAT WE WOULD CONSIDER 
BORDERLINE. WE WILL CONTINUE 
DOWN THAT PATH. 
IT REPRESENTS A NEEDLE IN A 
HAYSTACK, THE POINT THAT I MADE 
WITH A FRACTION OF 1% OF THE 
CONTENT. 
BUT WE WILL CONTINUE TO IMPROVE 
OUR RECOMMENDATION ALGORITHMS 
TO DRIVE THAT AS CLOSELY AS 
POSSIBLE TO ZERO FOR OUR USERS 
AS WE POSSIBLY CAN. 
>> THANK YOU. 
AS A HEAVY USER OF THE 
PLATFORM, I APPRECIATE IT, 
THANK YOU. 
>> AND THEN THERE IS 
SUBSCRIPTION CONTENT AND 
YOUTUBE HAS HAD SUCCESS IN THAT 
ARENA. 
IS THERE ANY ADVICE YOU COULD 
GIVE THEM, A.K.A. 
US?
>> [ LAUGHTER ]. AS I SAID AT 
THE BEGINNING OF THE 
CONVERSATION, OUR SUBSCRIPTION 
PRODUCT IS YOUTUBE PREMIUM 
WHICH BRINGS THE BEST OF YOUTUBE
BACKGROUND THAT ARE ADS FREE 
AND OFF-LINE. 
WE HAVE HAD THAT ON THE MARKET 
A COUPLE OF YEARS. 
THERE'S ANOTHER SUBSCRIPTION 
PRODUCT CALLED YOUTUBE TV WHICH 
IS MEANT TO BE A REPLACEMENT 
FOR CABLE. IT IS TELEVISION 
DOWN THE WAY WE WOULD WANT IT 
TO BE DONE. AND MY KEY 
LEARNINGS FROM A PRODUCT 
DEVELOPMENT STANDPOINT AROUND 
BOTH OF THOSE SUBSCRIPTION 
PRODUCTS, THE FIRST IS FOCUS ON 
BEING CRYSTAL-CLEAR AND AS 
SIMPLE AS POSSIBLE ABOUT THE 
USER VALUED PROPOSITION. 
WHAT ARE THEY GETTING WHEN THEY 
ACTUALLY PAY YOU $12 PER MONTH, 
OR WHATEVER THEY PAY YOU FOR 
YOUR SUBSCRIPTION PRODUCT. TRY 
TO BE AS CLEAR AS POSSIBLE AND 
THAT IS POINT NUMBER ONE. 
SOUNDS OBVIOUS, BUT THAT'S 
WHERE YOU SHOULD SPEND THE MOST 
TIME ABOUT BEING ABLE TO 
ARTICULATE THAT VALUE 
PROPOSITION. 
AND IN THE SECOND THING WHICH 
IS A LITTLE LESS OBVIOUS IS 
THAT A LOT OF WHAT MATTERS, 
ESPECIALLY IN THE EARLY DAYS, 
IS YOU BUILD THAT RAMP TO THE 
GROWTH OF SUBSCRIBERS. 
IT IS ALL THE BLOCK AND TACKLE 
ISSUES AROUND HOW YOU OPTIMIZE 
THE FUNNEL OF ACQUISITION, ROOM 
RETENTION, INTERN MANAGEMENT. 
HOW DO YOU MONITOR HOW MUCH 
CHURN THERE IS IN THE FIRST 
WEEK OR MONTH AND THEN WHEN 
DOES IT STABILIZE? 
IS IT THE SECOND WEEK OR THE 
SECOND MONTH? 
UNDERSTANDING THE CUSTOMER 
ACQUISITION. 
IT IS REALLY HOW YOU MANAGE THE 
FUNNEL AND HOW WELL YOU 
UNDERSTAND THE LEAKING IS OF 
THE FINAL. 
DO YOU SUPPORT IF YOU ARE A 
GLOBAL PRODUCT AND WANT TO BE 
IN ALL THE MARKETS OF THE 
WORLD? 
DO YOU SUPPORT -- HOW DO YOU 
HANDLE THE CANCELLATION FLOW? 
HOW DO YOU REMIND USERS THAT 
ARE ALREADY SUBSCRIBED ABOUT 
THE VALUATION OF YOUR PRODUCT? 
IT IS ALL THE BLOCK AND TACKLE 
AND THE NOT SO SEXY THINGS OF 
THE PRODUCT THAT COME INTO PLAY 
IN TERMS OF REALLY GETTING YOUR 
SUBSCRIPTION BUSINESS OFF TO A 
NICE START. 
THOSE ARE SECONDARY AFTER 
REALLY MAKING SURE YOU NAIL 
THAT CORE VALUE PROPOSITION. 
>> EXLLENT. 
I'M SURE SOMEONE TAKE -- TOOK 
NOTES AND I WILL REVIEW THOSE 
LATER. 
>> THANK YOU.
>> [ APPLAUSE ]. 
>> OKAY, LIKE I SAID, WE HAVE 1 
MILLION THINGS GOING ON AT ANY 
ONE GIVEN TIME IN THIS VENUE. 
ONE THING RIGHT NOW IS 
HAPPENING ON THE Q&A STAGE, HOW 
TO MAKE YOUR MEDIA STRAY TO 
TAKE STRATEGY. WE ALSO HAVE 
BROOKE HAMMER LAYING ON THE Q&A 
STAGE RIGHT NOW. 
AT 11:45 WE HAVE HOW TO 
EVALUATE TALENT AND MAKE 
DECISIONS WITH RAY DALIA WHO IS 
THE COFOUNDER AND CIO. 
THERE WILL BE A BOOK SIGNING 
AFTERWORDS IF YOU WANT TO SEE 
THAT. 
BUT NOW ON THE MAIN STAGE, WE 
ARE JOINED BY LOCKHEED MARTIN. 
UNFORTUNATELY MARILYN HUGHES 
WAS NOT ABLE TO MAKE IT DUE TO 
AN ACCIDENT BUT WE ARE EXCITED 
TO SIT DOWN WITH THE VICE 
PRESIDENT AND GENERAL MANAGER 
OF LOCKHEED -- AEROSPACE AT 
LOCKHEED MARTIN, DARRELL 
ETHERINGTON.
>> [ APPLAUSE ].
>> HELLO, WELCOME. 
RIGHT BACK TO SPACE. 
I THINK ONE OF THE INTERESTING 
THINGS WE WERE TALKING ABOUT 
WAS A LOT OF THE TECHNOLOGY 
THAT LOCKHEED HAS BUILT 
INVOLVES A LOT OF THE CONSUMER 
TECHNOLOGY WE HEAR ABOUT. 
TALK A BIT ABOUT LOCKHEED'S 
BUSINESS AND THE COMMERCIAL 
AEROSPACE. 
>> SO, WE ARE BUILDING 
SATELLITES FOR MILITARY 
INTELLIGENCE AND COMMERCIAL 
APPLICATIONS AND 
COMMUNICATIONS. 
WE HAVE ACTIVITY ACROSS THE 
WORLD. 
IN ADDITION TO THAT, IN MY 
BUSINESS, WHICH IS THE COOLEST 
JOB AT LOCKHEED IS THAT WE 
BUILD SPACE CRAFT TO EXPLORE 
THE SOLAR SYSTEM. 
WE ARE BUILDING ORION WHICH IS 
A DEEP SPACE SPACE CRAFT THAT 
WILL TAKE HUMANS TO THE MOVE -- 
MOON AND TO MARS AND 
POTENTIALLY BEYOND. 
>> YOU'VE MADE LOTS OF PROGRESS 
ON ORION JUST THIS YEAR. 
A KEY MILESTONE, YOU WANT TO 
EXPLAIN? 
>> SURE. 
IN JULY WE HAD A TESTING OF THE 
SYSTEM FOR ORION THAT WILL BE 
ON TOP OF THE CAPSULE. WHEN THE 
VEHICLE IS ON THE PAD TO LAUNCH 
AS WELL IS WHEN IT ACCELERATES 
DURING LUNCH. WE COULD TAKE, IF 
THERE'S AN ANOMALY THAT GOES ON 
OR AN ACCIDENT OCCURS, THE 
LAUNCH ABORT SYSTEM ACTIVATES 
AND PULLS THE CREW PORTION AWAY 
FROM THE ROCKET AND DEPLOY 
PARACHUTES AND SOFTLY LAND IN 
THE OCEAN. IT IS TO BRING 
ASTRONAUTS OUT OF HARMS WAY. 
IT'S AN IMPORTANT SYSTEM FOR 
SAFETY AND WE HOPE TO NEVER USE 
IT. 
WE'VE DONE A PADDLEBOARD TEST 
AND IN JULY WE DID THE ASCENT 
TEST AND WE PROVED THE SYSTEM 
IS NOW READY TO FLY. 
WERE EXCITED ABOUT THAT. 
>> THAT'S GOOD. 
READY TO FLY. WHEN YOU SAY 
THAT, I DON'T KNOW IF EVERYBODY 
UNDERSTANDS. DOES THAT MEAN YOU 
HAVE PEOPLE GOING OUT TOMORROW?
>> YEAH, SO I THINK BOB SMITH 
TALK TO YOU EARLIER ABOUT SAFETY
. SAFETY IS THE NUMBER ONE 
PRIORITY, ESPECIALLY WHEN 
FLYING CREW. THERE'S A LOT OF 
TESTING AND EVALUATION WE DO TO 
CONVINCE OURSELVES AND OUR 
CUSTOMERS THAT WE ARE READY TO 
FLY AND THAT IT IS SAFE TO FLY. 
SO, WE HAVE DONE THE LAUNCH 
ABORT SYSTEM TEST WHICH IS THE 
EMERGENCY EXIT, IF YOU WILL. 
NEXT, WE ARE GOING TO BE FLYING 
ARTEMIS 1 WHICH IS A UN-CREWED 
MISSION THAT WILL ORBIT THE 
MOON. 
IT IS REALLY TO TEST ALL THE 
SYSTEMS AND TO MAKE SURE THEY 
CAN WITHSTAND THE RADIATION 
ENVIRONMENT AND THAT WHEN WE 
COME BACK TO REENTRY THAT THE 
HEAT SHIELD IS SUFFICIENT 
ENOUGH TO PROTECT THE 
ASTRONAUTS INSIDE THE CAPSULE 
FROM THE EXTREME HEAT THAT THEY 
EXPERIENCE AS THEY ENTER THE 
EARTH'S ATMOSPHERE. 
THE PARACHUTES DEPLOY AND WE 
GET THE CREW OUT WHEN THEY 
RETURN TO EARTH. 
SO, THAT MISSION IS LATE NEXT 
YEAR. 
THE CREW MODULE FOR THAT HAS 
BEEN COMPLETED. 
WE HAVE HAD THE PRIVILEGE OF 
HAVING THE VICE PRESIDENT AT 
THE KENNEDY SPACE CENTER FOR AN 
APOLLO 50 CELEBRATION AND HE 
CONFIRMED THE ARTEMIS ONE 
MODULE IS COMPLETE. IT IS 
STACKED ON THE SERVICE MODULE 
THAT COMES FROM THE EUROPEAN 
SPACE AGENCY. 
THERE'S AN INTERNATIONAL FLAVOR 
AS WELL. IT WILL GO TO NASA FOR 
A HUGE THERMAL VACUUM CHAMBER 
TO TEST THE CAPSULE AND AND THE 
ENVIRONMENT OF SPACE. 
IT WILL GO THROUGH THAT AND 
THEN COME BACK AND BE PUT ON A 
ROCKET AND OFF IT IN. 
>> ALL RIGHT. SO YOU MENTIONED 
ARTEMIS 1 AND THIS IS THE 
ARTEMIS PROGRAM THAT NASA IS 
RUNNING TO GO BACK TO THE MOON. 
>> IT'S THE FIRST FEMALE AND 
THE NEXT MAN TO BE ON THE 
SURFACE OF THE MOON BY 2024. 
>> BY 2024 IS THE KING -- THING
. I HEAR A LOT OF SKEPTICISM IN 
THE SOCIAL COMMUNITY. 
HOW DO YOU FEEL ABOUT THAT? 
THE NASA ADMINISTRATOR REPEATS 
IT FREQUENTLY, HOW DO YOU FEEL 
ABOUT THAT DAY AND WHAT IS YOUR 
CONFIDENCE?>> I THINK IT'S 
EXCITING TO HAVE A DEADLINE TO 
GET HUMANS TO THE MOON AND 
BEYOND. 
IT'S NOT JUST THE MOON AND THEN 
WE ARE DONE. 
IT IS GOING TO THE MOON AND 
BEING THERE IN A SUSTAINABLE 
WAY. 
REALLY USING WHAT IT TAKES TO 
GET TO THE MOON AND WHAT IT 
MEANS TO BE IN DEEP SPACE SO 
THAT IT HELPS US TO BRING 
HUMANS FURTHER INTO THE SOLAR 
SYSTEM AND ONTO MARS. 
THEY HAVE TO BE SELF-SUFFICIENT
. THERE IS A PTOLEMY REQUIRED 
AN AI REQUIRED IN THE SYSTEMS. 
THEY CAN JUST PHONE HOME AND 
SAY HOUSTON, WE HAVE A PROBLEM. 
WHEN YOU HAVE A DELAY IN TERMS 
OF THE LATENCY. I THINK 2024 IS 
DOABLE, BUT THERE ARE 
CONDITIONS FOR THAT. NUMBER ONE 
IS WE NEED FUNDING TO SUPPORT 
THAT AND NUMBER TWO, WE NEED TO 
REUSE WHAT HAS BEEN DEVELOPED. 
YOU KNOW AT LOCKHEED MARTIN, WE 
ARE REALLY PROUD OF THE LIFE-
SUPPORT SYSTEM AS WELL AS THE 
CONTROLS WE HAVE BUILT, AND WE 
THINK THAT IS TRANSFERABLE TO 
TAKE HUMANS TO THE SURFACE OF 
THE MOON. 
PEOPLE MAY NOT UNDERSTAND THAT 
ORION WILL FLY TO THE GATEWAY 
WHICH IS AN ORBITING PLATFORM 
AROUND THE MOON. 
THE ASTRONAUTS GET OFF AND GO 
TO A LANDER. 
THEY GO TO THE LANDER TO THE 
SURFACE OF THE MOON. 
>> SO IT'S NOT A DIRECT FLIGHT. 
>> IT'S NOT A DIRECT FLIGHT AND 
NEITHER WAS APOLLO. THEY HAD A 
LANDER TO GET TO THE SERVICE OF 
THE MOON. AND THAT GOES BACK TO 
THE GATEWAY WITH THE ASTRONAUTS 
AND THEY GO BACK ONTO ORION AND 
COME HOME SAFELY. WHEN YOU TAKE 
THE ASTRONAUTS OUT OF ORION TO 
THE LANDER, IT WOULD BE GREAT 
IF YOU COULD TRAIN THEM ONCE 
AND THEY COULD USE THAT. 
THINK ABOUT WHEN YOU RENT A CAR 
AND IT'S A MODEL YOU'RE NOT 
USED TO, HOW LONG DOES IT TAKE 
YOU TO FIGURE OUT WHERE ARE THE 
WINDSHIELD WIPERS AND THE LIGHT 
CONTROLS? WE DON'T WANT THE 
ASTRONAUTS TO BE DEALING WITH 
THAT. 
WE ARE EXCITED ABOUT USING 
THOSE SYSTEMS WITH OTHER 
DEVELOPMENTS. 
WE'VE ALREADY DONE THE 
DEVELOPMENT AND YOU HAVE 
QUALIFIED THEM. 
IT'S A LOT OF TESTING WE HAVE 
TO DO TO CONVINCE OURSELVES 
THAT IT IS SAFE FOR HUMANS. 
SOME PEOPLE HAVE DONE IT, WHY 
DO THE RESOURCES TO DO IT AGAIN?
>> AND ALSO NASA'S PLACE. THERE 
ARE 6-12 ORION CAPSULES. 
>> JUST LAST WEEK, THEY 
ANNOUNCED THE ORION PRODUCTION 
CONTACT. 
YOU ARE RIGHT, IT'S FOR THE 
MINIMUM OF SIX CREW MODULES AND 
IT IS FOR ARTEMIS MISSION 3, 4 
AND 5. ARTEMIS 3 IS CRITICAL 
BECAUSE THE CREW MODULE TO TAKE 
THE FIRST FEMALE IN THE NEXT 
MAN UP TO THE GATEWAY. 
THAT WILL BE THE LANDING 
MISSION IN 2024. WE ARE REALLY 
EXCITED ABOUT THAT. THE TEAM 
HAS BEEN LOOKING FOR WAYS TO 
REDUCE THE COST ONE WAY WE DO 
THAT IS THROUGH REUSE. 
QUITE A BIT OF ORION'S REUSABLE
. WE QUALIFY FOR EQUIPMENT FOR 
MULTIPLE USES. 
SO THERE WILL BE REUSE AND A 
LOT WE HAVE DONE IN AUTOMATION 
AND AUGMENTED REALITY. IT IS A 
COOL THING AND REALLY HAS A BIG 
BANG IN TERMS OF PRODUCTIVITY 
FOR THE TECHNICIANS ON THE 
FLOOR BUILDING ORION. 
WE ACTUALLY GIVE THEM GOGGLES 
TO PUT ON WITH AUGMENTED 
REALITY AND THEY CAN SEE THE 
INSTRUCTIONS AND YOU CAN SEE 
THE REPLACEMENTS OF WHERE THEY 
PUT FASTENERS AND OTHER THINGS 
ON THE SPACECRAFT. 
SO TASKS THAT USED TO TAKE TWO 
OR THREE TECHNICIANS TWO OR 
THREE DAYS TO COMPLETE, WE CAN 
DO WITH ONE TECHNICIAN IN ABOUT 
TWO HOURS. 
>> DO YOU DEVELOP THAT IN-
HOUSE? 
HOW DOES IT WORK SPECIFICALLY? 
>> WE USE A LOT OF COMMERCIAL 
OFF-THE-SHELF AR TECHNOLOGY BUT 
WHAT WE DO WITH THE SPACECRAFT 
IS THAT WITH EVERY SPACECRAFT 
WE BUILD A DIGITAL TWIN. THINK 
OF THAT AS WE BUILD OUR 
SPACECRAFT DIGITALLY BEFORE WE 
BEND ANY METAL. BY HAVING THAT, 
WE CAN USE IT IN THE DESIGN 
PROCESS TO MAKE SURE WE HAVE 
THE RIGHT CLEARANCES FOR 
EQUIPMENT. WE CAN USE IT DURING 
MANUFACTURING, AS I JUST 
HIGHLIGHTED AS WELL AS WHERE DO 
YOU PUT FASTENERS AND 
TECHNOLOGY? 
WE CAN ALSO USE IT DURING THE 
MISSION AND WE CAN RUN THE 
MISSION IN OUR DIGITAL TWIN 
HERE ON EARTH. 
IF THERE ARE ISSUES, WE CAN SEE 
IT AND HELP TO DEBUG HERE ON 
EARTH. 
EVENTUALLY THE DIGITAL TWIN 
COULD BE ON THE SPACECRAFT 
ITSELF. 
WHEN THE ASTRONAUTS ARE ON MARS 
HUNDREDS OF THOUSANDS OF MILES 
AWAY FROM HERE, THEY COULD USE 
THE DIGITAL SYSTEM AND 
INTERROGATE THE DIGITAL TWIN TO 
HELP THEM MAKE DECISIONS ON 
WHERE TO LOOK FIRST FOR THE 
PROBLEMS THEY MAY BE HAVING. 
LIKE HOW TO USE THE BACKUP 
SYSTEM THEY MAY NOT BE AWARE 
OF.>> SO THEY WOULD BE INFORMED 
FIRST? 
>> IF THEY DID HAVE TO MAKE A 
REPAIR, THEY COULD USE THE 
DIGITAL REPAIR TO TRAIN BEFORE 
THEY ACTUALLY TOUCH THE ACTUAL 
HARDWARE.
>> THAT SEEMS LIKE A GREAT 
OPPORTUNITY WHERE YOU COULD 
LEAN ON PEOPLE WHO ARE MORE 
EXPERT IN THE FIELD TO HELP. 
WHERE ELSE DOES LOCKHEED LOOK 
TO INDUSTRY AND OTHER COMPANIES 
TO SUPPORT THE WORK THEY ARE 
DOING? 
>> I'M EXCITED TO BE HERE 
BECAUSE THERE ARE SO MANY GREAT 
STARTUP COMPANIES AND MANY OF 
THEM ARE SPACE THESE DAYS. 
LOCKHEED MARTIN HAS A GROUP 
CALLED LOCKHEED MARTIN VENTURES.
WE MAKE INVESTMENTS IN STARTUP 
COMPANIES AND WE ARE REALLY 
LOOKING TO TRY TO HELP 
ACCELERATE SOME OF THESE 
STARTUP COMPANIES BECAUSE THEY 
HAVE KEY TECHNOLOGIES WE NEED 
THAT ARE MAYBE USED ON EARTH 
BUT WE WANT TO APPLY IN SPACE 
AS WELL. IN THE LAST TWO YEARS, 
WE HAVE DOUBLED THE INVESTMENT 
WE WERE MAKING IN COMPANIES SO 
THE BUDGET IS $200 MILLION NOW. 
WE HAVE INVESTMENT IN SMALL 
SATELLITE COMPANIES AND SMALL 
LAUNCH COMPANIES AND WE 
CONTINUE TO WORK IN THE 
MENTORING WAY AS WELL AS A 
FINANCIAL WAY.
>> IS THERE AN ACQUISITION FOR 
LOCKHEED? 
>> IT COULD BE. 
FOR EVERY DOLLAR SPENT ON 
ORION, 60% GOES TO THE SUPPLY 
BASE. 
WE HAVE A HUGE SUPPLY BASE AND 
OF THAT 60%, 30% OF SMALL 
BUSINESS. SO WE HAVE SMALL 
BUSINESSES ACROSS THE UNITED 
STATES IN ALMOST EVERY STATE IN 
THE U.S. SUPPORTING US IN THAT. 
IT IS ONE STORY AFTER ANOTHER. 
THERE ARE WAYS WHERE COMPANIES 
GET INTO SPACE AND AEROSPACE IS 
REINVENTING ITSELF IN MANY WAYS.
IT HELPS THEIR BUSINESS AND 
HELPS THEM TO GROW OVER TIME. 
>> THIS IS INTERESTING. AGAIN, 
THERE IS THE PERCEPTION THAT 
THIS MONEY IS PERHAPS BETTER 
SPENT ELSEWHERE. 
YOU DON'T SEE THE EFFECTS A LOT 
OF THE TIME, BUT LOCKHEED MUST 
FACE THAT KIND OF CRITICISM. 
YOU'RE GETTING THESE VERY 
VALUABLE GOVERNMENT CONTRACTS 
PEOPLE ARE SAYING, WHY DON'T 
YOU SPEND IT HERE AT HOME? 
>> THE HERE IS THAT IT IS BIGGER
HERE THAN ON EARTH. 
THE TECHNOLOGIES THAT WE ARE 
GETTING OUT OF SPACE. 
HOW MANY PEOPLE HERE USED GPS 
TO FIND THIS LOCATION? 
THAT CAME OUT OF GOVERNMENT 
INVESTING IN TECHNOLOGY. I 
LIVED IN FLORIDA FOR YEARS AND 
I HAD AN INNOVATION SYSTEM ON 
MY POOL THAT DIDN'T USE 
CHLORINE AND I CAME OUT OF THE 
SPACE SHUTTLE SYSTEM FOR 
PURIFYING THE WATER ON THE 
STATION AND IN THE VEHICLE. 
SO, WE BENEFIT FROM THE 
TECHNOLOGY.
, SPACE IS REALLY COOL AND 
INSPIRES THE NEXT GENERATION. 
I'M EXCITED TO TALK ABOUT SPACE 
AND SENDING PEOPLE BACK INTO 
SPACE BECAUSE WE NEED MORE 
FOLKS TO BE EXCITED ABOUT 
SCIENCE AND TECHNOLOGY NINE 
ENGINEERING AND MATH. THE MORE 
WE INSPIRE THE NEXT GENERATION, 
IT WILL BENEFIT ALL OF US. 
>> THAT'S AN INTERESTING POINT. 
I HAVE TALKED TO A LOT OF 
PEOPLE WHO SAY, THERE IS 
EXCITEMENT THAT HASN'T BEEN 
THERE NECESSARILY SINCE THE 
SHUTTLE PROGRAM. 
>> RIGHT. 
>> I WAS TALKING TO AN 
ENTREPRENEUR AND HE WAS SAYING, 
I CAN HEAR NASA CHANGING ON THE 
PHONE. I CAN HEAR THE CHANGE 
HAPPENING AND HOW THEY APPROACH 
BECAUSE OF THE ENTRANCE OF NEW 
PRIVATE COMPANIES AND THE 
ENTHUSIASM. 
HAVE YOU NOTICED THAT? 
WHAT HAS IT BEEN LIKE TO CHANGE 
THROUGH THIS AS COMPETITORS 
CHANGE? 
THE COMPETITORS AND PARTNERS, 
SOMETIMES?>> IT IS SOMETHING. 
AGAIN IT'S THE EXCITEMENT AND 
WE ARE ON THE BRINK OF A NEW 
SPACE AGE. 
MORE THAN 900-1000 STARTUPS ARE 
COMING TO THE AREA. 
PEOPLE ARE GETTING EXCITED 
ABOUT IT. TO YOUR POINT, IT'S A 
DISCRETIONARY EXPENSE. 
IF WE COULD GET THE PUBLIC 
EXCITED ABOUT EXPLORATION AND 
SENDING HUMANS TO THE SOLAR 
SYSTEM, ALL OF IT IS TO BENEFIT 
WHAT WE DO HERE ON EARTH. 
THE MORE WE LEARN ABOUT OUR 
SOLAR SYSTEM, THE MORE BENEFIT 
AND UNDERSTANDING WITH HOW 
EARTH CAME TO BE AND WHERE IT'S 
GOING IN THE FUTURE. 
WHAT DO WE NEED TO DO TO 
PROTECT THIS PLANET? 
WE OWE THAT TO FUTURE 
GENERATIONS.
>> THERE IS STILL THE WHAT IS 
IN IT FOR ME ATTITUDE. 
NOT IN A SELFISH WAY, BUT EVEN 
FOR THE START UP IN SMALL 
BUSINESS. WHAT DOES A MINISTER-
BASED ECONOMY LOOK LIKE AND 
WHERE DO I FIT IN? 
WHAT YOU THINK OF THAT? 
>> WHEN YOU LOOK AT SPACE, 
THERE'S NO INFRASTRUCTURE IN 
PLACE RIGHT NOW OTHER THAN 
COMMERCIAL LAUNCH THAT IS THERE
. HOW ARE WE GOING TO TRANSPORT 
PEOPLE?  WHEN WE GET THEM GET 
OUR, WHAT WILL THEY DO? 
EVERYTHING WE HAVE ON EARTH 
THAT HAS TECHNOLOGY CONTINUES 
TO EXPLODE TO MAKE OUR LIVES 
BETTER. 
WE NEED TO TAKE THAT TO SPACE. 
SO, I THINK THERE'S A LOT OF 
OPPORTUNITY TO TAKE THE SAME 
INFRASTRUCTURE WE HAVE HERE AND 
MOVE THAT TO SPACE. THAT'S 
WHERE I THINK COMPANIES CAN 
CONTINUE TO GROW AND EXPAND. 
HOW DO THEY TAKE THIS 
TECHNOLOGY AND TRANSFER IT? 
I THINK SPACE IS SOMEWHAT 
UNCLEAR -- UNFORGIVING. RIGHT? 
THE ELECTRONICS NEED TO BE 
HARDENED AND RELIABLE AND SELF-
HEALING. BUT ONCE WE GET PAST 
THAT, AND WE HAVE FOR A LOT OF 
TECHNOLOGIES, THE SKY IS THE 
LIMIT. 
>> WHAT IS THE ECONOMIC ENGINE 
FOR THAT? 
IT SEEMS LIKE A LOT OF UP FRONT 
RISK FOR LONG-TERM REWARDS. 
IN OUR ICE -- EYES, THEY DON'T 
NECESSARILY HAVE THAT. HOW DO 
YOU BUILD A SUSTAINABLE 
INFRASTRUCTURE? 
>> YOU START SMALL AND THE 
GOVERNMENT PLAYS A BIG ROLE IN 
THAT INFRASTRUCTURE. 
THEY ALREADY HAVE. 
WITH THE INTERNATIONAL SPACE 
STATION, THEY HAVE OFFERED IT 
TO COMMERCIAL INDUSTRY FOR MANY 
YEARS. THERE IS FREE 
TRANSPORTATION AND THEY LET THEM
-- THE DRUG MANUFACTURERS ARE 
LOOKING AT NEW DRUGS AND THERE 
IS FIBER OPTICS BEING BUILT IN 
SPACE. 
THERE'S A LOT OF NEW TECHNOLOGY 
IN NASA PROVIDES THE 
INFRASTRUCTURE TO ALLOW STARTUP 
COMPANIES TO TRY NEW 
TECHNOLOGIES TO SEE WHAT IT 
TAKES TO ACTUALLY PERFORM IN 
SPACE. 
I THINK YOU WILL SEE THAT 
CONTINUE.
>> WHAT ABOUT NEAR-TERM? 
LOOK A LOT OF ROBOTICS AND 
ROBOTICS EXPLORATION. 
IF WE COULD BRING UP THE 
SLIDESHOW, WE DO HAVE A 
PRESENTATION. 
IT IS SUPER COOL. 
>> YEAH, WE'VE BEEN EXPLORING 
THE SOLAR SYSTEM FOR MORE THAN 
A DECADE AND PROBABLY LONGER 
THAN SOME PEOPLE IN THIS ROOM 
HAVE BEEN ALIVE. 
SO, WE HAVE EIGHT SPACE CRAFT 
WE OPERATE FOR NASA RIGHT NOW 
OUT OF OUR FACILITY. I BROUGHT 
SOME COOL IMAGES TO SHARE WITH 
YOU GUYS.
>> THEY ARE UP THERE. 
>> OKAY. 
THE FIRST ONE IS AN ASTEROID 
THAT IS NEAR EARTH
WE HAVE A SPACECRAFT THAT IS 
ORBITING, AND IT'S MADE THIS 
IMAGE FROM ITS INSTRUMENTS ON 
BOARD. 
WE CONTINUE TO LEARN THINGS 
THAT WE HAD NO IDEA ABOUT. 
WE FOUND OUT IT'S MUCH ROCKIER 
THAN WE EVER EXPECTED, AND WE 
ARE ACTUALLY NEXT SUMMER GOING 
TO TAG THIS ASTEROID AND BRING 
BACK A SAMPLE TO EARTH. 
THE REASON WE WANT TO KNOW MORE 
ABOUT THE ASTEROID IS IT HELPS 
US TO UNDERSTAND HOW THE SOLAR 
SYSTEM WAS FORMED AND EVEN 
BECAUSE IT'S A NEAR EARTH 
ASTEROID AND HOW EARTH WAS 
FORMED. 
THAT WILL HELP US UNDERSTAND 
OUR OWN PLANET BETTER. 
THIS ASTEROID IS REALLY ROUGH, 
SO WE'VE BEEN TRYING TO 
IDENTIFY WHERE WE ARE GOING TO 
TAG IT. 
ON TOP OF THAT, IT'S ACTUALLY 
SPITTING PARTICLES AT US, SO WE 
HAVE TO PROTECT THE SPACECRAFT 
FROM THOSE PARTICLES AS WELL. 
TREMENDOUS AMOUNT OF STUFF 
THERE. 
AGAIN, NEXT SUMMER WE WILL BE 
TAKING THAT AND THAT WILL COME 
BACK TO EARTH, SO PRETTY 
EXCITING. 
THESE ARE JUST SOME MORE IMAGES 
OF THAT. 
>> IS THIS A POTENTIAL 
COMMERCIAL APPLICATION? 
DO YOU THINK ABOUT THAT? 
>> SO THERE ARE COMPANIES OUT 
THERE TALKING ABOUT ASTEROID 
MINING. 
THERE ARE A LOT OF PRECIOUS 
METALS IN THESE ASTEROIDS. 
IF YOU COULD COLLECT THOSE 
METALS, YOU COULD DO IN SPACE  
MANUFACTURING, AND, YOU KNOW, 
ONE OF THE BIGGEST COSTS TO 
SPACE RIGHT NOW IS GETTING 
THINGS OFF OF EARTH. 
IF YOU COULD ACTUALLY DO THINGS 
IN SPACE OUTSIDE OF THE GRAVITY 
WELL, IT'S A LOT CHEAPER TO 
MOVE THAT AND THE COSTS GO DOWN 
INCREDIBLY. 
LET'S SEE WHAT ELSE. 
THIS IS A PICTURE OF INSIGHT ON 
MARS. 
THAT'S AN ACTUAL SPACECRAFT 
THAT LANDED, RIGHT AFTER 
THANKSGIVING. 
INSIGHT IS REALLY STUDYING THE 
INTERIOR OF ROCKY PLANETS. 
IT'S NOT SO MUCH ABOUT MARS BUT 
USING MARS TO HELP US 
UNDERSTAND MORE ABOUT PLANETS 
LIKE EARTH AND ROCKY PLANETS, 
SO IT'S GOT A SEISMOMETER ON 
IT, WHICH IS IN THE UPPER RIGHT-
HAND CORNER. 
NASA JUST RELEASED YESTERDAY, 
IF YOU GO TO THEIR WEBSITE, 
SOME NEW SOUNDS COMING OFF OF 
MARS. 
SO THERE IS THE SOUND OF THE 
WIND, THERE'S MARS QUAKES, 
WHICH WE ARE MEASURING ON THE 
SEISMOMETER, AS WELL AS YOU CAN 
SEE WHEN THE ARM MOVES AROUND. 
THERE IS ALSO A THERMAL PROBE 
ON IT THAT'S GOING TO DIG INTO 
MARS AND UNDERSTAND MORE ABOUT 
THE CORE OF MARS. 
A LOT OF GREAT SCIENCE THERE. 
AND THEN THIS IS A PICTURE OF 
JUPITER. 
SO WE HAVE A SPACECRAFT WE ARE 
OPERATING THAT'S CALLED JUNO. 
IT ENTERED ORBIT THREE YEARS 
AGO IN JULY OF 2016, AND THAT 
BLACK SPOT ON TOP OF JUPITER IS 
ACTUALLY, WE CAUGHT AN IMAGE 
WHERE WE WERE SEEING THE SHADOW 
OF ONE OF  JUPITER'S MOONS 
SHADOWING DOWN ON THE SURFACE 
OF JUPITER. 
WE ARE LITERALLY REWRITING THE 
SCIENCE BOOKS AROUND JUPITER 
WITH JUNO. 
WE ARE LEARNING MORE ABOUT IT 
THAN WE EVER THOUGHT BEFORE. 
WE THOUGHT IT HAD A TIGHT CORE 
WITH A LOT OF GAS AROUND IT. 
WE ARE FINDING THAT THE CORE 
EXTENDS ALMOST 50% OF ITS 
RADIUS AND IT'S VERY SQUISHY, 
IT'S NOT REALLY A HARD-CORE, 
AND IT'S NOT UNIFORM AT ALL. 
SO STAY TUNED. 
WE ARE LEARNING A LOT ABOUT THE 
SOLAR SYSTEM AND WE WILL LEARN 
A LOT ABOUT WHAT THAT MEANS FOR 
EARTH AS WELL FOR YOU. 
>> THAT'S GREAT. 
THANKS VERY MUCH, LISA. 
>> THANK YOU. 
>> THANK YOU. 
OKAY. 
COMING UP NEXT, WE HAVE A 
SPECIAL NEWS ANNOUNCEMENT. 
WITH THAT, I WOULD LIKE TO 
WELCOME TO THE STAGE, THE 
COFOUNDER AND EXECUTIVE 
CHAIRMAN OF FOURSQUARE, JANICE 
CROWLEY, AND YOUR MODERATOR.
>> HEY, EVERYBODY. 
TODAY WE'VE GOT A LITTLE NEWS 
OF SORTS. 
WE GOT THE COFOUNDER DENNIS  
CROWLEY. 
FOURSQUARE HAS BEEN UP TO A 
LOT. 
WHAT ARE YOU UP TO RIGHT NOW? 
>> FIRST, THANKS FOR HAVING ME  
HERE. 
EXCITED TO BE HERE. 
WE BEEN DOING THIS FOR MORE 
THAN TEN YEARS NOW, AND IN 
THOSE TEN YEARS, WE FELT ALL 
SORTS OF AMAZING STUFF. 
WE'VE ACCUMULATED ALL SORTS OF 
TECHNOLOGY AND DATA ASSETS. 
I THINK WE'VE DONE AN AMAZING 
JOB TRYING TO SHARE THE THINGS 
WE BUILD WITH THE DEVELOPER 
COMMUNITY, STARTING WITH THE 
API WHEN WE RELEASED THAT IN 
202009 AND 2010 AND ALL OF THE 
PLACES WE WERE LEARNING ABOUT 
AROUND THE WORLD. 
ONE OF THE THINGS WE ARE MOST 
PROUD OF IN TERMS OF TECHNOLOGY 
AND DATA ASSETS IS THIS THING 
CALLED PILGRIM. 
IT'S THIS PIECE OF TECHNOLOGY 
THAT HAS TAKEN US ALMOST FIVE 
OR SIX YEARS TO BUILD AND IT'S 
A COUPLE LINES OF CODE THAT YOU 
CAN PUT IN AN APP, BASICALLY, 
AND THEN THAT APP BECOMES AWARE 
OF WHERE IT IS, RIGHT? 
SO WE HAVE PACKAGED THIS UP IN 
SOMETHING CALLED -- WE'VE 
SHARED IT WITH A FEW SELECT 
DEVELOPERS ON THE ENTERPRISE 
SIDE. 
IT'S A COUPLE LINES OF CODE YOU 
CAN PUT IN AN APP. 
WHEN THAT APP GOES INTO, YOU 
KNOW, A RETAIL SHOP, WALKS 
THROUGH A MALL OR A CITY, IT 
CAN UNDERSTAND, AND MY IN A 
BAKERY? 
AM I IN A NIKE STORE? 
HAVE I BEEN HERE BEFORE? 
IS THIS PLACE FAMILIAR TO ME? 
WE THINK THIS IS ONE OF THE 
FOUNDATIONAL BUILDING BLOCKS. 
THE THING THAT WE HEAR TODAY IS 
THAT THIS PIECE OF TECHNOLOGY 
WE'VE WORKED SO HARD TO BUILD 
OVER SO MANY YEARS WE'VE KEPT 
VERY CLOSE TO US WE ARE FINALLY 
RELEASING IT FOR EVERYONE TO 
USE AS A FREE TEAR. 
SO TODAY WE ARE RELEASING THIS 
AVAILABLE TO ALL DEVELOPERS. 
PEOPLE CAN JUMP IN AND START TO 
PLAY WITH US. 
PUT IT IN THEIR APPS. 
YOU ARE ENTIRELY FREE TO USE 
IT. 
UNLIMITED GEO FENCES AND FREE 
FOR UP TO HUNDRED THOUSAND. 
SO THIS IS -- 
>> A PRETTY CENTRAL PART OF 
YOUR COMPANY NOW. 
IN THE CONSUMER SPACE TO SOME 
DEGREE, AND YOU ARE REALLY 
FOCUSING ON PILGRIM. 
>> EXACTLY. 
WE HAVE BUILT SO MANY -- WE 
BUILT SO MUCH TECHNOLOGY AND 
DATA OVER THE LAST TEN YEARS, 
AND WE KIND OF SEE DECISION AS 
APPS THAT CHANGE BASED UPON 
WHERE YOU TAKE THEM, APPS THAT 
CHANGE BASED ON WHERE YOU BEEN. 
IT FOR A LONG TIME, WE WAITED 
FOR THE COMPANIES TO BUILD THIS 
TECHNOLOGY BEFORE WE REALIZED 
MAYBE FIVE OR SIX YEARS AGO 
THAT IF WE WANTED THIS STUFF TO 
EXIST, WE HAVE TO BUILD 
OURSELVES. 
IT TOOK US A LONG TIME TO DO 
IT. 
WE WERE TESTING INTERNALLY. 
YOU SEE THE STUFF NOW IN THE 
CITY GUIDE APP AND THE APP WE 
HAVE AS WELL AS A BUNCH OF 
ENTERPRISE PARTNERS. 
I THINK THE THING I'M MOST 
EXCITED ABOUT IS TO TAKE THIS 
TECHNOLOGY, GIVE IT TO AS MANY 
DEVELOPERS AS POSSIBLE,  AND 
SEE WHAT PEOPLE END UP DOING 
WITH IT. 
WHETHER MAKING EXERCISE OR 
FITNESS APPS, FINANCIAL APPS, 
GAME DEVELOPERS, THERE'S JUST 
SO MANY THINGS YOU CAN DO IN 
ORDER TO BUILD APPS THAT 
CHANGE. 
>> SO YOU BEEN WORKING WITH 
THESE CUSTOMERS FOR A WILD. 
WHY DIDN'T YOU WAIT UNTIL NOW 
TO HAVE A FREE PRODUCT TO BRING 
THEM IN? 
>> THERE'S A COUPLE REASONS. 
FIRST OF ALL, WE WANTED TO MAKE 
SURE THIS STUFF WORKED AS WELL 
AS WE NEEDED IT TO PRAY WE'VE 
TAKEN A LONG TIME TO BUILD 
THESE PRODUCTS AND BUILD THE 
TECHNOLOGY. 
WE WANTED TO MAKE SURE THEY 
WORK AS ADVERTISED. 
WE ARE TESTING THESE THINGS ALL 
TIMES. 
THE SECOND THING, YOU KNOW THE 
THING WITH GREAT POWER COMES 
GREAT RESPONSIBILITY. 
YOU CAN MAKE ALL SORTS OF 
AMAZING THINGS WITH THE 
TECHNOLOGY WE'VE BUILT, BUT WE 
ARE VERY AWARE THAT PEOPLE 
COULD USE IT IN WAYS THAT WE 
DON'T WANT THEM TO. 
WE SPENT A LOT OF TIME 
INTERNALLY MAKING SURE THAT THE 
TECHNOLOGY THAT WE BUILD, 
WHETHER IT'S THROUGH THE API OR 
SDK, IT HAS CERTAIN 
RESTRICTIONS, THERE CERTAIN 
CATEGORIES YOU DON'T WANT TO 
MAKE AVAILABLE TO UNDERSTAND 
WHERE PHONES GO. 
WHETHER THOSE ARE SPIRITUAL 
CENTERS, CHEMOTHERAPY CENTERS, 
DIVORCE LAWYER. 
THERE IS CATEGORIES THAT 
DEVELOPERS SHOULDN'T HAVE ANY 
BUSINESS KNOWING THAT YOU HAVE 
TAKEN YOUR DEVICE THERE. 
WE'VE BEEN CAREFUL TO BUILD 
THOSE SAFEGUARDS INTO THE TOOLS 
THAT WE BUILT SO THAT PEOPLE 
CAN STILL BUILD AMAZING THINGS 
NOT EXPLOIT THEM IN WAYS. 
WE WANTED TO MAKE SURE THAT 
THEY HAVE THE RIGHT 
INFRASTRUCTURE INTERNALLY SO WE 
COULD BUILD THESE THINGS AND 
STILL THE DEVELOPERS THAT WERE 
USING THE SOFTWARE, AND HAVING 
SYSTEMS TO KEEP AN EYE ON 
THINGS. 
>> HOW DID DEVELOPERS GET 
ACCESS TO THIS? 
>> DO WE HAVE A SLIDE? 
I WILL PUT IT UP HERE FOR A 
SECOND. 
I'M GOING TO GO QUICK BECAUSE 
WE HAVE 15 SECONDS LEFT. 
YOU HAVE ACCESS TO ALL THESE 
AMAZING TOOLS, TECHNOLOGIES, 
DASHBOARDS, AND TO SIGN UP, 
TOTALLY FREE FOR ALL 
DEVELOPERS. 
IT'S A REALLY BIG DEAL, AND, 
YOU KNOW, A LOT OF THIS OFFER 
HASN'T EXISTED BEFORE. 
WE ARE JUST ENTERING THIS ERA 
OF CONTEXTUAL COMPUTING WHERE 
IT'S A LOT OF BUILDING BLOCKS 
THAT NEED TO BE BUILT. 
WE BUILT A LOT OF THEM AND WE 
ARE EXCITED TO SHARE IT WITH AS 
MANY DEVELOPERS AS POSSIBLE AND 
SEE WHAT PEOPLE DO WITH IT. 
>> DENNIS AND I WILL BE 
CHATTING AT 4:25 AND WE WILL 
DIG INTO THIS A LITTLE BIT 
MORE, TALK ABOUT FOURSQUARE AND 
ITS JOURNEY AS A COMPANY, BUT 
WE WILL CHAT THEN. 
PLEASE JOIN US. 
>> THANKS FOR HAVING ME. 
>> GOOD JOB. 
ALL RIGHT. 
SO WE ARE GOING TO BE BREAKING 
FOR LUNCH. 
A COUPLE QUICK HOUSEKEEPING 
NOTES. 
THERE'S GOING TO BE A BOOK 
SIGNING OUTSIDE THE ENTRANCE TO 
THE MAIN STAGE WITH RAY ON HIS 
BOOK PRINCIPLES IF YOU WANT TO 
CHECK THAT OUT. 
SWEET GREEN IS $10 OFF. 
I DIDN'T KNOW ABOUT THAT UNTIL 
JUST NOW, SO THAT'S COOL. 
AND THE TRANSCRIPTION OF THE 
MAIN STAGE CONTENT IS POWERED 
BY AUDITOR DOT AI. 
I WILL SEE YOU BACK HERE AT 
12:50, PLEASE. 
ENJOY LUNCH. 
BYE-BYE. 
>> AS COMPANIES TRANSITION TO 
USING MICROSERVICE IN THEIR  
ARCHITECTURES, MORE APIS ARE 
CREATED ACROSS THE 
ORGANIZATION. 
WITH THIS INCREASE, IT CAN 
BECOME MORE CHALLENGING FOR 
DEVELOPERS TO FIND THESE 
INTERNAL APIS AND REUSE THEM 
WHEN THEY ARE DEVELOPING NEW 
SOFTWARE FOR YOU AND THAT'S 
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, VIEW ITS 
DOCUMENTATION, TEST IT, AND 
CONNECT DIRECTLY, OR 
COLLABORATE AND SHARE 
INFORMATION ABOUT THE API. 
TEAM MEMBERS CAN SUBSCRIBE TO 
ANY PUBLIC API AVAILABLE ON THE 
RAPID API MARKETPLACE AND THE 
ENTIRE TEAM CAN SEE IN USE THAT 
SUBSCRIPTION. 
THIS WAY YOU ONLY PAY ONCE FOR 
ANY API YOUR TEAM USES PRETTY 
RAPID API FOR TEAMS MAKES IT 
EASIER TO SHARE AND COLLABORATE 
ON API. 
GET STARTED TODAY. 
RAPID API.COM/TEAMS.
>> OUR TEAMS LOVE BUILDING 
COMPANIES AT GREAT VALUES. 
AS WELL AS OUR INVESTMENTS IN 
COMPANIES. 
WE ARE BUILDING MEANINGFUL 
GLOBAL BUSINESSES IN ONLINE 
CLASSIFYING, FOOD DELIVERY. 
>> WE HAVE GREAT EXPERIENCE IN 
OPERATING AND INVESTING IN 
LARGE COMPANIES.
>> WE HAD A VERY HELPFUL AND 
SPECIFIC ADVICE THAT THEY CAN 
GIVE TO US. 
>> WE THINK LIKE ENTREPRENEURS. 
THEY ARE A FANTASTIC PARTNER. 
>> OUR BIG VISION IS TO MAKE 
LIFE BETTER FOR 1 BILLION 
PEOPLE. 
I BELIEVE THIS IS THE PERFECT 
PARTNER TO HELP US ACHIEVE OUR 
DREAMS.
>> WHY DO YOU COME TO THIS 
WORKSHOP? 
TO LEARN.
>> I WANT TO BE WHERE WE ASK 
QUESTIONS LIKE WHY. 
THE BIG QUESTION I ASKED, IT'S 
A DIFFERENT WAY OF THINKING 
THEN 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.
>> AT LOCKHEED MARTIN, WE ARE 
ON A MISSION. 
YOUR MISSION. 
WHEN MILLIONS OF PEOPLE ARE 
COUNTING ON YOU, AND YOU CAN 
COUNT ON US. 
TO BUILD THE IMPOSSIBLE, TO 
INVENT THE INCONCEIVABLE, AND 
SOLVE EVERY PROBLEM, SPEED, AND 
RELIABILITY. 
EVERY MISSION IS AN EXPEDITION 
OF THE GREATEST IMPORTANCE BOTH 
TO YOU AND TO US.
>> WE ARE ACTUALLY INSPIRED BY 
THE TERMINATOR VIDEO. 
BASICALLY, THE IDEA THAT THE 
MASS FROM THE OBJECT COULD BE A 
LIQUID UNDERNEATH IT.
IT'S REVOLUTIONIZING HOW PEOPLE 
DESIGN PRODUCTS, AND WE CRACKED 
THE CODE ON HOW TO MAKE 
PRODUCTS AT SCALE, THEREFORE, 
UNLEASHING THE POWER OF DIGITAL 
MANUFACTURING AND DIGITAL 
DESIGN AND ALL THE 
OPPORTUNITIES THAT THAT HAS TO 
MAKE IT AND HAVE PEOPLE'S 
DREAMS ON WHAT THEY WANT TO 
DESIGN COME TO FRUITION.
>> WE'VE FIGURED OUT A WAY TO 
STILL GROW AN OBJECT. 
WE'VE INVENTED A VERY SPECIAL 
WINDOW THAT IS NOT ONLY 
OPTICALLY TRANSPARENT BUT IT'S 
ALSO PERMEABLE TO OXYGEN. 
THEY WORK IN POLAR OPPOSITE 
WAYS TO ALLOW US TO TAKE A 
LIQUID UNDERNEATH IT LIKE THE 
PUDDLE AND HAVE THAT BECOME THE 
MASS FOR THE OBJECT THAT'S 
GROWING.
>> WHAT YOU GET OUT OF THE 
PRINTER IS THE FINAL PRODUCT. 
A LOT OF IT IS PROTOTYPING.
>> WE ARE OUTSIDE OF PORTLAND, 
OREGON. 
ONE OF THE MOST INTERESTING 
COMPANIES WORKING IN ANIMATION 
TODAY. 
UNLIKE TRADITIONAL PLACES, THEY 
USE THINGS LIKE PRETTY -- LIKE 
3D PRINTING.
WE GOT TO HEAR ALL ABOUT THE 
NEW FILM THAT'S COMING OUT.
>> ON THE PAGE, THIS SEEMS LIKE 
NOT THE KIND OF MOVIE YOU 
SHOULD BE TRYING TO MAKE. 
IT WAS HUGE. 
I THINK THAT'S WHY WE DECIDED 
TO DO IT. 
I THINK ALL THE SKILLS THAT 
WE'VE HAD, THEY HAVE KINDA SET 
US UP TO MAKE THIS ONE. 
>> HOUSE MCGRATH? 
>> ON THIS MOVIE, THEY ARE SO 
MANY LITTLE THINGS THAT YOU 
MIGHT NOT NECESSARILY NOTICE, 
BUT TOGETHER THEY PROBABLY MADE 
THIS THE BEST MOVIE WE'VE EVER 
MADE. 
THE FACIAL ANIMATION ON THE 
PREVIOUS FOUR MOVIES, WE USE TO 
REPLACE THE FACES ON TO THE 
PUPPETS, AND WE WOULD PIECED 
TOGETHER DIALOGUE, SENTENCES 
USING PRE-EXISTING FACES. 
ON THIS MOVIE, WE WANTED MORE 
NUANCE. 
WE WANTED MORE SUPPLE ACTING, 
IN THE WAY WE ENDED UP DOING IT 
WAS ANIMATION SO THAT EACH SHOT 
HAS ITS OWN SPECIFIC FACES THAT 
ARE JUST FOR THAT SHOT.
YOU NEED TO THAT THOUGHT, THAT 
LINE OF DIALOGUE. 
THAT'S SOMETHING WE'VE NEVER 
DONE BEFORE, BUT IT HAS, GIVEN 
THE ANIMATION, A LOT MORE 
COMPLEXITY. 
>> WE ARE USING 3D PRINTING IN 
A UNIQUE WAY. 
WE ARE ACTUALLY USING 3D 
PRINTING AS OUR MASS PRODUCTION 
TOOL WHERE WE ARE MASS 
PRODUCING HUNDREDS OF 
THOUSANDS. 
ACTUALLY, 106,000 UNIQUE FACES 
FOR OUR FILM, THE MISSING LINK. 
WE HAD THIS IDEA USING THIS 
ANGEL TECHNIQUE OF REPLACEMENT 
ANIMATION, WHICH WAS TYPICALLY 
DONE BY HAND SCULPTING 
INDIVIDUAL FACIAL EXPRESSIONS. 
OUR IDEA WAS TO FUSE IT WITH 
21st CENTURY 3D PRINTING 
TECHNOLOGY. 
WE HAVE GONE THROUGH FOUR 
DIFFERENT TYPES OF 3D PRINTING 
TECHNOLOGY. 
WE STARTED WITH POLY JET 
TECHNOLOGY MADE BY STRATUS', 
WHICH WAS A SINGLE COLOR RESIN 
PRINTING, BUT AT THE TIME ALL 
OF THE FACES WE PRODUCED NEEDED 
TO BE HAND PAINTED, SO STARTING 
ON PEER NORMAN, WE MOVED TO A 
COLOR 3D PRINTER, AND THAT WAS 
MADE BY A COMPANY THAT WAS 
CALLED THE Z-650. 
IT WAS POWDER BASED PRINTING 
WAY THAT TECHNOLOGY WAS OUR 
BASE TECHNOLOGY FOR PEER NORMAN 
BOX TROLLS, AND THE HUMAN 
CHARACTERS. 
STARTING HERE, WE PLAYED AROUND 
A LITTLE BIT. 
WE HAD THIS EMERGING RESIDENT 
COLOR PRINTING. 
IT WAS A STRATUS MACHINE, AND 
THAT ALLOWED YOU TO MIX THREE 
COLORS, WHICH IS PRETTY 
LIMITING. 
YOU COULDN'T PRINT THE RAINBOW. 
YOU SORT OF HAD TO CHOOSE WHAT 
THREE COLORS YOU ARE GOING TO 
MIX. 
SHORTLY THERE AFTER, THEY 
RELEASED THE J-750, WHICH 
ALLOWED YOU TO PUT SIX COLORS 
INTO A MACHINE AND MIX THEM AND 
COME UP WITH A HUGE GAMUT OF 
COLOR. 
AT THAT TIME, THE SOFTWARE THAT 
THEY WERE BUILDING TO RUN THE 
MACHINE WAS PRETTY LIMITED. 
WE ENDED UP NEEDING TO PARTNER 
WITH THE RESEARCH INSTITUTE OUT 
OF GERMANY. 
THEY DEVELOPED THIS ADVANCED 
COLOR 3D PRINTING SLICING 
SOFTWARE CALLED THE PUDDLE 
FISH. 
THAT UNIQUE COMBINATION AND 
THAT UNIQUE RELATIONSHIP 
ALLOWED US TO PRODUCE THE 
WONDERFUL FACES YOU SEE ON 
MISSING LINK. 
>> THE REQUEST FOR THE 
PERFORMANCE OF PUPPETS AS WE 
MOVE THROUGH EACH FILM IS 
INCREMENTALLY MORE. 
YOU KNOW, WE SPEAK ABOUT SORT 
OF PUPPETS TAKING A BREATH AND 
LIVING. 
THE MATERIALS THAT WE LANDED 
ON, THEY WERE, FOR THE REASON, 
THEY'VE GOT RANGE. 
THAT SAID, WHEN AN OBJECT IS 
MADE OF SOMETHING BUT IT'S 
SUPPOSED TO BE SOMETHING ELSE, 
ENSURING THAT IT DOESN'T LOOK 
LIKE THAT MATERIAL IS SOMETHING 
THAT WE DIAL IN ON. 
THAT HAS ITS OWN COMPLEXITY. 
IF WE LOOK AT THE LINK, FOR 
EXAMPLE, IT HAS KIND OF A SUIT 
FOR THE MAIN PART, AND IF THE 
FOR PIECES BUCKLE, AND THEN 
THAT DESTROYS THE ILLUSION. 
THAT DESTROYS PERFORMANCE. 
SO EVEN WHEN IT'S AS SIMPLE AS  
THAT, TO ACTUALLY ARRIVE AT AND 
THEN PUT IN PLACE FOR MANNED 
MASS MANUFACTURING. 
THAT SOMETHING YOU ALSO HAVE TO 
CONSIDER. 
IT'S REALLY SOMETHING.
>> I BELIEVE STOP MOTION IS 
RELEVANT, BECAUSE IT REALLY IS 
THE QUINTESSENCE OF WHAT 
FILMMAKING IS. 
TO ME, THAT IS ITS REAL LIFE 
AND REAL OBJECTS. 
THERE IS SOMETHING ABOUT THE 
ACTIVITY THAT MAKES IT 
COMPELLING. 
>> WHEN WE DIP PARANORMAL AT 
THE END, SHE WAS A COMBINATION 
OF STOP MOTION PUPPET, AND SHE 
HAD A CG DRESS AND FACIAL 
ANIMATION WAS TOO DEEP, SO SHE 
WAS A HYBRID. 
I REMEMBER SITTING WITH PEOPLE, 
AND THEY COULDN'T QUITE WORK 
OUT WHAT IT WAS THEY WERE 
LOOKING AT. 
WAS IT A PUPPET? 
WASN'T IT? 
THAT'S WHAT I LIKE IS WHEN 
PEOPLE ARE KIND OF RIVETED TO 
THIS IMAGE ON SCREEN AND THEN 
YOU'RE NOT QUITE SURE HOW WE 
DID IT AND THERE'S SOMETHING 
MAGICAL ABOUT THAT. 
>> I AM NOT A PURIST. 
I LOVE STOP MOTION. 
I EMBRACE IT. 
I THINK IT'S MY FAVORITE 
MEDIUM, BUT IN THE END WHAT I 
WANT TO DO IS PUT AN IMAGE ON 
THE SCREEN THAT LOOKS THE BEST 
IT POSSIBLY CAN, AND REALLY 
FILMMAKING OF THIS KIND IS 
TELLING A STORY AND THE HOPE IS 
THAT YOU HAVE AN AUDIENCE OF 
PEOPLE WHO ARE COMPELLED BY THE 
CHARACTERS, CARE ABOUT THE 
CHARACTERS, AND ARE SUCKED INTO 
THAT STORY. 
I, CERTAINLY, DON'T WANT THEM 
TO TAKE THEM OUT OF THE STORY 
AGAIN. 
THAT IS A VALID ARTISTIC 
DECISION TO MAKE. 
YOU CAN DO THAT, BY ALL MEANS. 
I LOVE MOVIES THAT DO THAT. 
BUT FOR ME, THAT'S NOT WHAT WE 
ARE TRYING TO DO. 
WE ARE TRYING TO TELL A STORY 
AND USE WHATEVER MEANS POSSIBLE 
TO GET THE BEST IMAGE.
>> BRAVO. 
>> THANK YOU.
>> I WORK AT LOCKHEED MARTIN, 
MAINLY BECAUSE OF THE MISSION. 
IT'S NOT -- IT'S REALLY KIND OF 
THE ONLY OPPORTUNITY IN THE 
SILICON VALLEY TO PUSH 
TECHNOLOGY FORWARD ON THE SKILL 
THAT YOU CAN'T IN A CONSUMER 
ENVIRONMENT. 
YOU ARE WORKING WITH A VERY 
DIFFERENT DESIGN METHODOLOGY. 
WHAT YOU'RE TRYING TO DO IS 
MAKE A ONE-OFF AS OPPOSED TO 
MAKING A MILLION OF SOMETHING. 
THAT HAS TO BE AS GOOD AS IT 
CAN POSSIBLY GET. 
SO YOU ARE PUSHING EVERYTHING 
FOR YOUR PUSHING ALL THE 
TECHNOLOGIES. 
IT'S REALLY JUST A MUCH 
DIFFERENT PROBLEM SET THEN YOU 
GET AT A DIFFERENT PROP COMPANY 
IN THE BAY AREA.
>> AT LOCKHEED MARTIN, HELPED 
TO DEVELOP NEW TECHNOLOGIES IN 
ACTIVE AND PASSING SENSING AS 
WELL AS OPTICAL COMMUNICATIONS. 
CURRENTLY, IMAGING SYSTEMS FOR 
SATELLITE DOMINATE YOUR 
SATELLITE. 
THEY BECOME THE DOMINANT IN 
TERMS OF SIZE, WEIGHT, AND 
POWER. 
THEY BECOME THE SATELLITE THAT 
MATTERS. 
THE GOAL IS TO SHRINK THE SIZE 
OF THE TELESCOPE. 
THE SPIDER STANDS FOR THE 
SEGMENTED PLANAR IMAGING 
DETECTOR FOR ELECTRO- OPTICAL 
RECONNAISSANCE. 
IT MEANS THAT YOU HAVE AN IMAGE 
OR THAT TAKES IMAGES. 
IT INFERS WHAT AN IMAGE WOULD 
BE AS OPPOSED TO TAKING THE 
DIRECT DIMENSION. 
SO THE ALTERNATIVES WOULD BE 
MORE CONVENTIONAL, WHICH WOULD 
BE LARGE, BULKY GLASS OBJECTS 
LIKE WE BEEN DOING IN THE PAST. 
YOUR SATELLITE IMAGES FOR 
GOOGLE MAPS. 
THAT SATELLITE WAS EQUIVALENT 
TO THE SIZE OF A SCHOOL BUS. 
DESPITE HER IMAGERY WOULD BE 
THE SAME DIAMETER, SO IT WOULD 
STILL BE VERY LARGE IN 
DIAMETER. 
HOWEVER, IT WOULD BE MUCH 
THINNER FROM 20 FEET TO 
PROBABLY A  FEW INCHES MAYBE 
SIX TO 8 INCHES AT MOST.
>> THIS IS WHERE WE GENERATED 
THE FIRST IMAGE. 
THEY ARE COUPLED INTO THE FRONT 
OF THE CIRCUIT. 
>> WE KNOW THAT THE ENGINEERING 
CHALLENGE SHOWED US HOW TO DO 
THE ELECTRONICS, BUT IT'S A LOT 
TO BITE OFF, WHICH IS WHY WE 
WERE FOCUSING ON THE FRONT 
PART, WHICH IS THE TECHNOLOGY. 
>> IN THE FUTURE WHAT THIS 
MEANS IS THAT YOUR INSTRUMENTS 
AND SATELLITES GOING TO PLACES 
LIKE MARS WOULD BE MUCH MORE 
CAPABLE AND PROVIDE MUCH MORE 
SCIENCE IN THE SAME SPACE. 
IT COULD ALSO BE USED ON A 
DRONE OR IN ANY SPACE, WEIGHT 
CONSTRAINED ENVIRONMENT WHERE 
YOU WANT TO ADD IMAGING 
CAPABILITIES BUT YOU DON'T WANT 
TO DETRACT FROM THE OVERALL 
MISSION. 
>> I AM A RESEARCHER HERE AT 
LOCKHEED MARTIN. 
WE ARE IN THE NANO COPPER LAB. 
WHAT WE ARE DEVELOPING HERE IS 
CALLED NANO COPPER. 
WE CALL IT A NANO STRUCTURED 
MATERIAL. 
CURRENTLY, PEOPLE USE TEN 
SOLDERS. 
THE PROBLEM IS THEY CREATE TEN 
WHISKERS, WHICH ARE OUTGROWTHS 
THAT COME 90 DEGREES OUTSIDE 
THE JOINT. 
WHAT THEY END UP DOING IS 
SHORTING TWO DIFFERENT JOINTS 
AND DESTROYING THE CIRCUIT 
BOARD. 
ONE OF THE TECHNICAL FELLOWS 
ASKED WHAT DO I WANT SAUTER TO 
BE MADE OUT OF? 
WE CAME UP WITH COPPER. 
ALSO, COPPER IS THE IDEAL 
CONDUCTOR. 
IT HAS BETTER WILL THERMAL 
CONDUCTIVITY. 
THIS LEADS TO THE ABILITY TO 
MAKE NEW DESIGNS. 
WHAT WE HAVE IS THE NANO 
COPPER. 
WE HAVE MANY OTHER COOL USES 
FOR  IT, SO I'M GOING TO PUT A 
LITTLE ON YOUR FINGER. 
SPREAD IT AROUND AND BUS IT A 
LITTLE, YOU'LL SEE IT MAINTAINS 
ITS SHININESS. 
IT LOOKS LIKE COPPER, AND IT 
SPREADABLE LIKE TOOTHPASTE. 
>> HOW LONG DOES IT TAKE TO 
MAKE THIS? 
>> OUR LAB PROCESS IS ABOUT 
FOUR DAYS. 
>> IN TERMS OF USE? 
>> A KILOGRAM. 
>> THE OTHER APPLICATIONS 
INVOLVE.
WE'VE DONE WORK MAKING FLEXIBLE 
SUBSTRATE. 
IF YOU LOOK AT THE CHIP RIGHT 
THERE, THEY WERE PRINTED WITH 
NANO COPPER, BECAUSE REGULAR 
SAUTER IS NOT IDEAL FOR 
FLEXIBLE  APPLICATIONS. 
ONCE THE NANO COPPER TECHNOLOGY 
MATURED ENOUGH THAT WE STARTED 
LOOKING FOR BUSINESS 
OPPORTUNITIES, LOCKHEED MARTIN 
DECIDED IT WOULD BE BEST TO 
HELP START UP A SECOND COMPANY, 
WHICH IS CALLED COOPER  JAN, 
AND THEY HANDLED THE  NON-
SPACE, NONDEFENSE MARKETING OF 
THE NANO COPPER MATERIAL.
>> LADIES AND GENTLEMEN, PLEASE 
TAKE YOUR SEATS. 
THE PROGRAM WILL BEGIN IN FIVE 
MINUTES.
LADIES AND GENTLEMEN, PLEASE 
SILENCE ALL 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 
SENIOR WRITER AND YOUR 
BATTLEFIELD HOST ANTHONY HA. 
>> WELCOME TO THE FIRST ROUND 
OF THE STARTUP BATTLEFIELD. 
RAZOR HAD OF THE THE FIRST TIME 
YOU'VE EVER BEEN TO A STARTED 
BATTLEFIELD SESSION? 
EXCELLENT. 
I WILL TELL YOU EVERYTHING YOU 
NEED TO KNOW RIGHT NOW. 
WHAT HAPPENS IS HUNDREDS OF 
STARTUPS FROM AROUND THE WORLD 
APPLIED TO DISSIPATE. THE 
STARTED BATTLEFIELD TEAM, SOME 
OF THE FOLKS SITTING RIGHT OVER 
THERE AT TECH CRUNCH, THEY HELP 
NARROW IT DOWN. 
WE HAVE CHOSEN 18 STARTUPS PLUS 
2 WILDCARDS WHO WILL PRESENT 
OVER THE NEXT TWO DAYS. 
EACH WILL PRESENT FOR SIX 
MINUTES, AND THEN THE ANSWER 
SIX MINUTES OF QUESTIONS AND 
ANSWERS FROM THE JUDGES. 
THE STARTUPS HAVE BEEN 
REHEARSING FOR MONTHS. 
THEY ARE SUPER PREPARED, BUT 
THERE IS ALWAYS AN ELEMENT OF 
UNPREDICTABILITY BECAUSE THERE 
IS A LIVE DEMO. 
A WHOLE BUNCH OF LAPTOPS OVER 
THERE, IN THE JUDGES GET TO ASK 
ANYTHING THEY WANT. 
WHAT THAT MEANS IS, THEY ARE 
GOING TO BE VERY NERVOUS. 
THINGS COULD GO WRONG. 
BUT I WOULD REALLY APPRECIATE 
FROM YOU GUYS IS JUST, WHEN 
THINGS GO REALLY WELL OR REALLY 
BADLY, JUST SHOW YOUR SUPPORT, 
BE GENEROUS, BE SUPPORTIVE. 
APPLAUD WHEN IT MAKES SENSE. 
I'M NOT GOING TO HAVE YOU DO 
THAT NOW. 
SAVE THE ENERGY. 
BUT WHEN THE TIME COMES, I WANT 
YOU TO BE READY TO HAVE THE 
STARTUPS FEEL LIKE THIS IS THE 
GREATEST EXPERIENCE OF THEIR 
LIVES. 
WHEN THE SESSION ENDS, THE 
JUDGES WILL GO BACKSTAGE AND 
HELP US CHOOSE SOME FINALISTS. 
THOSE FINALISTS ARE GOING TO 
PRESENT ON FRIDAY, AND THEN THE 
JUDGES WILL HELP US CHOOSE A 
WINNER. 
NOW, HOW WE CHOOSE THE WINNER IS
, OR WHAT WE ARE LOOKING FOR 
ANY WINNER, THERE IS A WHOLE 
BUNCH OF DIFFERENT FACTORS WE 
ARE LOOKING AT. 
BUT FUNDAMENTALLY WHAT WE WANT 
IS FOR THESE FINALISTS IN THE 
WINTER TO THE COMPANY THAT 5 TO 
10 YEARS FROM NOW IS WHEN YOU 
CAN TELL EVERYONE OH MY GOD, I 
AM IN THIS COMPANY LAUNCHED ON 
STAGE. 
THEY WILL ALSO GET $100,000 
EQUITY FREE. 
I HAVE NOW TOLD YOU EVERYTHING 
YOU NEED TO KNOW. 
WHICH MEANS IT IS TIME TO BRING 
OUT THE JUDGES. 
FIRST UP WE HAVE BRIAN HIRSCH, 
COFOUNDER AND MANAGING PARTNER 
AT TRIBECA VENTURE PARTNERS. 
BEFORE STARTING TRIBECA IN 
2011, BRIAN WAS FOUNDER AND 
MANAGING DIRECTOR OF GREENHILL 
AND ALSO HAS MORE THAN 20 YEARS 
OF EXPERIENCE IN THE VENTURE 
BUSINESS. 
NEXT WE HAVE GENERAL PARTNER AT 
CANAAN PARTNERS. 
SINCE 2000 SHE HAS INVESTED IN 
A RANGE OF COMPANIES WITH THE 
CURRENT FOCUS AREAS IN CONSUMER 
TECHNOLOGY, ENTERPRISE CLOUD 
AND MARKETPLACES. 
NEXT WE HAVE A PARTNER AT 
FORERUNNER VENTURES. 
SINCE JOINING FORERUNNER, MAY 
2012, HE HAS SUPPORTED 
INVESTMENTS IN MORE THAN 40 
EARLY-STAGE COMPANIES. 
NEXT WE HAVE MICHELLE McCARTHY, 
MANAGING DIRECTOR AT VERIZON 
VENTURES. 
SHE MAKE STRATEGIC INVESTMENTS 
FOR THE VENTURE CAPITOL GROUP 
FOCUSED PRINCIPALLY ON THE 
CONSUMER SPACE. 
AND LAST BUT NOT LEAST, WE HAVE 
PATRICIA, GENERAL PARTNER AT 
TRINITY VENTURES. 
SHE INVESTS IN EARLY-STAGE 
CONSUMER AND BUSINESS 
TECHNOLOGY STARTUPS AND SECTORS 
INCLUDING THE SHARING ECONOMY, 
REAL ESTATE AND FOOD 
TECHNOLOGY. 
SO LET'S GIVE IT UP FOR ALL OF 
OUR AWESOME JUDGES. 
[ APPLAUSE ] THAT MEANS IT IS 
TIME TO BRING OUT A VERY FIRST 
BATTLEFIELD STARTUP. 
THAT STARTUP IS TRAPTIC. 
COME ON OUT. 
[ APPLAUSE ]  MANUAL LABOR. 
200 YEARS AGO WE PICKED WEED BY 
HAND. 
EVERY SINGLE ONE. 
A BUNCH OF PEOPLE OUT IN THE 
FIELD WITH HANDTOOLS DOING 
THINGS MANUALLY. 
THAT WE INVENTED COMBINES. 
MACHINES HARVEST QUICKLY, 
EFFICIENTLY AND AT ENORMOUS 
VOLUME. 
BUT THEY LACKED THE DELICACY 
AND PRECISION NECESSARY TO 
HARVEST MOST FRUITS AND 
VEGETABLES. 
SO PEOPLE ARE STILL PICKING 
MORE THAN $200 BILLION WORTH OF 
FRUITS AND VEGETABLES BY HAND 
EACH YEAR. 
WHY IS THIS A PROBLEM? 
TAKE STRAWBERRY PICKING. 
20% OF THE STRAWBERRIES GROWN 
IN THE U.S. WERE OUT OF THE 
FIELD BECAUSE THERE IS NOBODY 
AVAILABLE TO PICK THEM. 
LABOR IS ALSO SUPEREXPENSIVE. 
IT COSTS $15,000 PER ACRE, FOR 
$.25 PER POUND JUST FOR MANUAL 
LABOR FOR HARVEST. 
THIS LABOR IS GETTING EVEN MORE 
EXPENSIVE AND MORE SCARCE DUE 
TO AN AGING WORKFORCE AROUND 
THE WORLD, NATIONAL POLITICAL 
DYNAMICS, IN CALIFORNIA LABOR 
LAWS. 
OUR ROBOTS ARE SAVING THE FOOD 
PRODUCTION SYSTEM BY AUTOMATING 
THE WORK PEOPLE DON'T WANT TO 
DO. 
OUR ROBOTIC PLATFORM DRIVES 
ACROSS THE FIELD WHILE THE 
VISION SYSTEM DETECTS BERRIES 
AND FIGURES OUT HOW TO REACH 
THEM. 
THEN OUR PATENT AND GRIPPER 
DELICATELY EXTRACTS THE PRODUCE 
FROM THE PLANT. 
WHAT DOES THIS LOOK LIKE?
LET'S SWITCH TO THE MACHINE. 
THE SYSTEMS CAMERAS TAKE A 
SNAPSHOT OF THE SCENE. 
OUR VISION SYSTEM DETECTS THE 
STRAWBERRIES, DECIDES WHICH TO 
PICK, FIGURES OUT THE POSITION 
OF THE BARRY, AND DETERMINES 
THE PLANT AROUND A. EVENT PLANS 
A PATH TO GRAB IT AND COMMAND 
THE ROBOT ARM TO MOVE THE 
GRIPPER TO THE BARRY. 
IT THEN LIFTED OFF THE FIELD 
AND CLOSES AROUND IT FIRMLY BUT 
GENTLY. 
WITH AND COMMAND THE ROBOT ARM 
TO YANK THE GRIPPER AWAY. 
WE FINISHED BY DEPOSITING THE 
BERRY ON THE CONVEYOR.  
JUST IN CASE YOU THOUGHT THIS 
WAS A LAB EXPERIMENT, LET'S 
PLAY THE VIDEO. 
OUR SYSTEM DOES ALL THIS IN 
REAL TIME WHILE HANGING OFF THE 
BACK OF A TRACTOR AND MOVING 
CONTINUOUSLY OVER REAL 
STRAWBERRY FIELDS. 
IT IS ROBUSTA DUST, DIRT, RAIN, 
WIND, VIBRATIONS AND THE OTHER 
ASPECTS OF THE TOUGH FARM 
ENVIRONMENT. 
AND OPERATE ALL DAY, EVERY DAY 
FOR MONTHS AND YEARS ON END. 
OUR GRIPPER IS TOTALLY UNIQUE 
AND PATENTED. 
THIS GRIPPER MUST ATTRACT FROM 
A CROWDED ENVIRONMENT, HOLD 
THEM AT A CERTAIN ANGLE, APPLY 
A GREAT DEAL OF FORCE TO BREAK 
THE STEM OF THE BERRY INTO ALL 
THIS  WHILE BEING VERY 
DELICATE. 
GRAB THE BERRIES WITH SOFT FOOD 
SAFE SILICONE BELTS THAT WE 
MOLD AROUND STIFFER MATERIALS. 
THESE BELTS GIVE THE GRIPPER 
MECHANICAL COMPLIANCE WHICH 
ALLOWS IT TO GRAB OBJECTS 
ACROSS A VARYING RANGE OF SHOT 
SIZE AND SHAPE WITHOUT NEEDING 
ANY INFORMATION ABOUT THE 
OBJECTS PROPERTIES. 
WE CLOSING FIGURES WITH A 
DEFINED AMOUNT OF FORCE, 
ALLOWING US TO GRAB OBJECTS OF 
DIFFERENT SIZES WITHOUT 
CRUSHING OR DROPPING THEM. 
THIS LETS THE SAME GRIPPER 
GRABBED PRODUCE ACROSS A LARGE 
RANGE OF SIZE AND SHAPE WITHOUT 
NEEDING ANY INFORMATION ABOUT 
THE OBJECT PROPERTIES. 
WITHOUT ANY HARDWARE CHANGES OR 
ANY INFORMATION FROM SOFTWARE. 
BUILT ON A ROBUST DATA SET, THE 
TRAPTIC ROBOT IS CAPABLE OF 
FINDING BERRIES AND DEFINING  
RIGHTNESS AS WELL AS PEOPLE. 
AND FINALLY, IT DOES ALL THIS 
LOCALLY. 
NO INTERNET, NO OFF-SITE 
COMPUTER. 
INDUSTRY-STANDARD MACHINES ARE 
NOT DESIGNED FOR DELICATE 
PRODUCE. 
CONVERSELY, SOME STARTUPS 
TARGET LOW VALUE ACTIVITIES 
LIKE WEEDING ONLY WORTH $1000-
$2000 PER ACRE. 
FOR THE HARVEST FOODS LIKE 
APPLES WERE THEY ARE ONLY 
NEEDED A FEW MONTHS PER YEAR. 
TRAPTIC FOCUSES ON YEAR-ROUND 
STRAWBERRY HARVEST . FINALLY, 
WE DON'T REQUIRE ANY CHANGE IN 
THE GROWING PROCESS, PROVIDING 
A SMOOTH PATH FOR DEPLOYMENT. 
OUR MASTER PLAN, GET $3 BILLION 
IN REVENUE BY PICKING 
STRAWBERRIES, $20 BILLION IN 
REVENUE BY PICKING THE OTHER 
FRUITS AND VEGETABLES, THEN GO 
AFTER $200 BILLION IN CROP 
VALUE BY AUTOMATING AND 
IMPROVING REMAINING ACTIVITIES. 
ROBOTS AS A SERVICE. 
WE PICK STRAWBERRIES, AND 
GROWERS WILL PAY US $.23 PER 
POUND. 
THIS IS SLIGHTLY LESS THAN THE 
CURRENT SPEND. 
WE PROVIDE ALL ASPECTS OF THE 
SERVICE. 
THE MACHINE, TRACTOR, DRIVER, 
ETC. 
TRAPTIC HAS DEVELOPED TESTING 
PARTNERSHIPS OVER THE LAST 
THREE YEARS WITH THE LARGEST 
COMMERCIAL GROWERS, INCLUDING  
NATURE RIGHT AND DRISCOLL'S, 
AND WE HAVE DONE DAILY TESTING 
OVER THE PAST SIX MONTHS.  
TRAPTIC WILL DEPLOY 
COMMERCIALLY NEXT YEAR.  
WE BUILT BIG FIXED WING 
AUTONOMOUS AIRPLANE FOR A 
UNIVERSITY PROJECT. 
THEN WENT TO WORK AT UTC 
AEROSPACE SYSTEMS AND I WENT TO 
WORK AT MICROSOFT. 
AFTER STARTING TRAPTIC, WE 
RECRUITED FROM UC BERKELEY, 
UNIVERSITY OF MICHIGAN,  SPACE 
X, GM AND DRISCOLL'S. 
OUR ADVISORS COULD GLOBALLY 
RECOGNIZED PIONEERS. 
COMPUTER VISION, AGRICULTURE, 
ROBOTICS ALONG WITH MANY 
OTHERS. 
THE FUTURE OF ROBOTICS IS 
OUTDOORS. 
JOINED TRAPTIC AND HELP SAVE 
THE FOOD PRODUCTION SYSTEM.  
[ APPLAUSE ] 
>> STRAWBERRIES FOR THE JUDGES. 
>> THANK YOU. 
>> DOES ANYONE WANT TO START 
ASKING A QUESTION? 
>> N I EAT FIRST? 
>> I CAN JUMP IN. 
>> WE WON'T JUDGE YOU FOR 
ASKING WITH YOUR MOUTH FULL. 
I GET SOME TOO. 
SWEET. 
>> YOU TALKED ABOUT THE COST OF 
YOUR ROBOT RELATIVE TO LABOR, 
MANUAL BELABOR. 
WHAT ABOUT THE SPEED? 
HOW QUICKLY CAN YOUR ROBOT 
HARVEST AN ACRE SAY RELATIVE TO 
MANUAL LABOR? 
>> THAT IS A GREAT QUESTION. 
IT IS SOMETHING WE THINK ABOUT 
FROM TWO ANGLES. 
THE FIRST ANGLE IS WHAT THE 
GROWERS CARE ABOUT. 
THEY REALLY CARE ABOUT THE COST 
TO HARVEST THEIR QAEDA BERRIES, 
VERY STRAIGHTFORWARD BECAUSE WE 
JUST DECIDE HOW MUCH WE CHARGE 
WITH THE SERVICE MODEL. 
AND THE CARE ABOUT THE QUALITY 
OF THE BERRIES. 
WE HAVE RECENTLY HAD ONE OF OUR 
CUSTOMERS DO A DETAILED 
EVALUATION OF THE FRUIT WE ARE 
PICKING, AND THEY TOLD IS THE 
QUALITY FRUIT WAS EQUIVALENT TO 
WHAT HUMANS WERE DOING. 
AND THEN, THE OTHER SIDE IS THE 
SIDE WE CARE ABOUT, THE 
ECONOMICS. 
ONE OF OUR PRODUCTION MACHINES 
WILL DO AS MUCH WORK AS ABOUT 
20 PEOPLE. 
BECAUSE WE ARE ALSO ABLE TO 
HARVEST AND RUN THE MACHINE 
YEAR-ROUND, ACTUALLY HAVE GREAT 
ECONOMICS. 
WE'RE ABLE TO PAY BACK THE 
CAPITOL EXPENSE OF THE MACHINE 
IN AROUND SEVEN MONTHS. 
>> THANK YOU. 
>> ARE YOU DOING THE DRIVING 
YOURSELF? 
BECAUSE YOU NEED TO HAVE 
SOMEBODY STAFFED NEAR THE 
MACHINE? 
BECAUSE IT TAKES SOME LEVEL OF 
EXPERTISE OR BECAUSE IT 
REQUIRES REGULAR SERVICING? 
IS THAT WHY YOU ARE DOING THE 
DRIVING? 
>> WE HAVE A HUMAN DRIVER ON 
OUR MACHINE. 
PRIMARILY BECAUSE WE DON'T NEED 
TO AUTOMATE IT. 
WE HAVE FOCUSED ON THE ASPECTS 
OF THIS. 
WE STARTED WITH THE ASPECT THAT 
PROVIDES THE MOST VALUE, 
PICKING THE STRAWBERRIES. 
AND WE FOUND THAT, EVEN WITH A 
HUMAN DRIVER, THE MACHINE WILL 
BE LARGE ENOUGH THAT HAVE LARGE 
ENOUGH SCALE THAT WE CAN PAY A 
HUMAN DRIVER AND STILL HAVE 
REALLY GREAT ECONOMICS. 
WE REALLY DON'T NEED TO BUILD 
THAT SELF DRIVING CAPABILITY. 
AND THIS ALLOWS US TO GET INTO 
MARKET A LOT SOONER. 
>> BUT WHY IS IT THE FARMER 
DRIVING? 
WHY AREN'T YOU JUST RENTING THE 
MACHINE OR SELLING HIM OR HER 
THE MACHINE? 
>> I SEE. 
THE REASON WE WANT TO PROVIDE 
ALL ASPECTS OF THE SERVICE TO 
MAKE IT VERY MUCH A TURNKEY 
SOLUTION. 
SO THE GROWER DOESN'T HAVE TO 
THINK ABOUT IT OR TRAIN ANYONE. 
THEY DON'T HAVE TO THINK ABOUT 
HOW TO RUN THE SERVICE. 
WE JUST PROVIDE EVERYTHING. 
WE SHOW UP, PICTURE 
STRAWBERRIES, THEY PAY US THE 
SAME WAY THEY'VE BEEN DOING 
ALREADY, IF IT'S NICELY INTO 
THEIR BUSINESS. 
THE IDEA IS TO PROVIDE A SMOOTH 
PATH FOR DEPLOYMENT. 
>> TO THAT END, HOW DO GROWERS 
THINK ABOUT THE CAPEX THEY ARE 
SPENT ON THEIR EXISTING 
EQUIPMENT, MUCH OF WHICH I AM 
GUESSING IS FINANCED WITH LONG-
TERM LEASES OR WHATNOT. 
HOW DO YOU THINK ABOUT THE 
DECISION OF THROWING OUT ALL 
THAT CAPEX SPEND WITH THE 
EXISTING EQUIPMENT THEY MIGHT 
HAVE AND ADOPTING A SOLUTION 
LIKE THIS? 
>> THE WAY THEY THINK ABOUT THAT
, THE IMPORTANT ASPECT, BECAUSE 
WE RUN THIS AS A SERVICE. 
OF COURSE THEY DON'T HAVE TO 
PAY A BIG CAPEX UPFRONT. 
THERE JUST PAYING FOR THIS AND 
USE IT. 
AND THE SYSTEM FITS NICELY INTO 
THE EXISTING PRACTICES. 
SO WE DON'T REQUIRE ANY CHANGE 
IN GROWING PROCESS. 
THEY DON'T HAVE TO THROW AWAY 
ANY MACHINES. 
THEY DON'T HAVE TO CHANGE THE 
WAY THE STRAWBERRIES ARE BEING 
GROWN OR ANYTHING LIKE THAT. 
WE JUST SAY YOU CONTINUE 
GROWING STRAWBERRIES THE SAME 
WE ALWAYS HAVE, AND WE ADDER 
MACHINE TO THE FIELD, AND IF 
IT'S REALLY NICELY INTO THEIR 
BUSINESS. 
>> YOU WON'T RETROFIT THEIR 
EXISTING TRACTOR? 
IT WILL BE USED FOR EXCESS 
CAPACITY? 
WHAT HAPPENS WITH THE EXISTING 
-- 
>> BASICALLY, THE CONTINUE TO 
USE THEIR EXISTING TRACTOR FOR 
THE OTHER ACTIVITIES THEY NEED 
TRACTORS FOR. 
THEY ARE USING TRACTORS TO TELL 
THE FIELD AND SPRAY THINGS ON 
PLANS AND THINGS LIKE THAT. 
SO THEY CONTINUE USING THE 
EXISTING TRACTORS FOR THAT. 
AND THEN WE JUST ADDER MACHINE 
TO THAT FIELD AND PROVIDE THE 
TRACTOR AND THE MACHINE AND 
EVERYTHING. 
>> WHAT IS YOUR MARKET ENTRY 
PLAN? 
AND ARE YOU ALREADY DOING BETA 
TESTING RIGHT NOW? 
ARE YOU WORKING WITH SPECIFIC 
GROWERS YET? 
>> YES. 
WE BEEN DOING ALL THE TESTING 
OVER THE PAST THREE YEARS IN 
COMMERCIAL FARMS RUN BY THE 
LARGEST GROWERS IN THE WORLD. 
WE HAVE BEEN SPENDING A BUNCH 
OF TIME IN THE FIELD, INCLUDING 
RUNNING EVERY DAY OVER THE PAST 
SIX MONTHS PICKING BERRIES 
EVERY DAY. 
RUNNING THE MACHINE ALL DAY. 
WORKING THE LARGE COMMERCIAL 
GROWERS THE LAST THREE YEARS. 
ARE COMMERCIAL DEPLOYMENTS WILL 
BE MOST LIKELY WITH ONE OF 
THEM. 
>> WHAT PERCENTAGE OF THE MARKET
DO THOSE GROWERS REPRESENT YOU 
ARE CURRENTLY WORKING WITH? 
>> ON THE ORDER OF HALF THE 
MARKET. 
>> YOU HAD A SLIGHT TALKING 
ABOUT THE EXPANSION OF THE 
TECHNOLOGY FROM BERRIES TO 
STRAWBERRY SPECIFICALLY TO 
OTHER BERRIES AND CROPS. 
WHAT IS INVOLVED IN ADJUSTING 
THAT SYSTEM TO EXPANDING THE 
PRODUCTS YOU CAN ACTUALLY PICK 
AND WHAT IS THE GENERAL TIME 
LIGHT TIMELINE OF THAT 
TECHNOLOGY? 
>> STARTING WITH THE $3 BILLION 
STRAWBERRY MARKET. 
WHAT WE FOUND IS THAT BECAUSE 
WE STARTED WITH ONE OF THE 
HARDEST CROPS WE COULD THINK 
OF, THE GRIPPER WE DEVELOPED 
FOR THIS ACTUALLY WORKS REALLY 
WELL FOR A LOT OF OTHER FRUITS 
AND VEGETABLES. 
AND SO, WE TESTED WITH A WHOLE 
BUNCH OF DIFFERENT FRUITS AND 
VEGETABLES. 
IT WORKS REALLY WELL. 
AS WE EXPAND TO THE OTHER 
FRUITS AND VEGETABLES, WE CAN 
REUSE ABOUT 80% OF THE GRIPPER 
TECHNOLOGY. 
AND WE WILL ALSO BE ABLE TO 
RETRAIN THE VISION SYSTEM TO 
DETECT OTHER CROPS. 
SO WE ARE USING MAYBE 75% OF 
THAT TECH FOR OTHER CROPS. 
AND THEN WE WILL ALSO DEVELOP 
TWO NEW FORM FACTORS OF ROBOTIC 
PLATFORM. 
OF THE CURRENT MACHINE THAT 
HARVESTS WHAT IS BASED ON THE 
GROUND AND WILL DEVELOP TWO 
MORE, ONE FOR VINES AND ONE FOR 
TREE FRUIT. 
THAT WILL EVEN THEN SHARE A 
LOT. 
BASICALLY THREE DIFFERENT 
MACHINES. 
THAT WILL ALLOW US TO REALLY 
EASILY EXPAND FROM THE $3 
MILLION STRAWBERRY MARKET OUT 
TO THE $20 BILLION OF 
HARVESTING THE OTHER FRUITS AND 
VEGETABLES. 
EVEN AT THAT POINT, WILL HAVE 
MACHINES RUNNING IN ALL 
DIFFERENT FIELDS, DIFFERENT 
CUSTOMERS AND WILL BE ABLE TO 
DO OTHER THINGS AS WELL. 
>> GIVE IT UP FOR TRAPTIC. 
[ APPLAUSE ] 
>> GREAT JOB.  
SO BEFORE WE BRING OUT THE 
NEXT, I WANT TO REMIND THE 
JUDGES THAT YOU SHOULD EAT SOME 
STRAWBERRIES, ALTHOUGH IT IS A 
LITTLE MESSY. 
BE CAREFUL. 
THERE IS A TABLE BEHIND YOU IN 
CASE YOU DON'T WANT IT IN YOUR 
LAP. 
LET'S BRING OUT OUR SECOND 
STARTUP. 
DELOS. 
[ APPLAUSE ]  
>>
HI EVERYBODY. 
THIS IS STAND. 
STAND IS 70 AND BUILT HIMSELF A 
RETIREMENT HOME OUTSIDE OF SAN 
DIEGO. 
FORTUNATELY, HIS HOME DID NOT 
BURN IN THE DEVASTATING 2017 
AND 2018 WILDFIRES. 
HOWEVER, HIS INSURANCE COMPANY 
REFUSED TO RENEW HIS COVERAGE. 
AND THE ONLY OTHER OPTION HE 
COULD FIND CHARGED HIM $24,000 
A YEAR WITH $100,000 
DEDUCTIBLE. 
AND HE IS NOT THE ONLY ONE. 
THERE ARE MANY ARTICLES THAT 
DISCUSS MANY PEOPLE TO GO 
THROUGH THE EXACT SAME PROBLEM 
AS STAN. 
HUNDREDS OF THOUSANDS 
THROUGHOUT CALIFORNIA. 
SO WHY IS THIS HAPPENING?  
AFTER THE 2017 AND 2018 
WILDFIRES, INSURANCE COMPANIES 
CAME TO REALIZE THAT THE THIRD-
PARTY DATA MODELS, THE WILDFIRE 
MODELS THEY WERE BUYING, WERE 
INCREDIBLY INACCURATE. 
BECAUSE OF THIS INACCURACY, 
THEY DECIDED THEY SIMPLY CAN'T 
WRITE ANYWHERE NEAR WILDFIRE 
AREAS BECAUSE THEY DON'T KNOW 
WHICH HOMES ARE LOW AND HIGH 
RISK. 
THIS CREATES A HUGE OPPORTUNITY 
FOR A COMPANY THAT DOES 
UNDERSTAND THAT RISK. 
LET'S GO AHEAD AND TAKE A LOOK 
AT A SET OF HOMES THE BIRD IN 
2017 AND 2018. 
LET'S LOOK AT THE MODEL THAT 
MOST INSURANCE COMPANIES BY. 
THE INDUSTRY-LEADING MODEL. 
LET'S SEE HOW THAT MODEL RATED 
THE RISK OF THESE HOMES BEFORE 
THEY BURNED. 
AS YOU CAN SEE, THEY 
INCORRECTLY THOUGHT THAT THESE 
HOMES WERE AT A LOW RISK OF 
BURNING. 
AGAIN, ALL OF THESE HOMES 
BURNED. 
BECAUSE OF THIS, INSURANCE 
COMPANY SIMPLY DECIDE THAT THEY 
WILL STAY AWAY FROM ANYWHERE 
NEAR WILDFIRE REGION. 
THEY DON'T KNOW WHICH HOMES ARE 
GOING TO BURN AND WHICH WILL 
NOT. 
DELOS TAKES ADVANTAGE OF THIS 
OPPORTUNITY. 
WE'RE LAUNCHING A PROPERTY 
INSURANCE COMPANY THAT WRITES 
INSURANCE SPECIFICALLY FOR LOW 
RISK HOMES  WITH IN CATASTROPHE 
REGIONS. 
WE STARTED WITH WILDFIRES AND 
WILL HANDLE HURRICANES NEXT. 
THE KEY IS THE FACT WE CREATED 
OUR OWN PROPRIETARY WILDFIRE 
MODELS AND VASTLY OUTPERFORM 
THE MODELS AVAILABLE IN THE 
INDUSTRY. 
USES MODEL TO UNDERSTAND WHAT 
AREAS ARE LOW RISK AND OFFER 
INSURANCE TO HOMES THE OTHER 
INSURANCE COMPANIES SIMPLY 
WOULD STAY AWAY FROM. 
ON TOP OF THIS, OUR POLICY 
COMES ALONG WITH AN ACTIVE RISK 
MITIGATION SERVICE. 
WE REACH OUT TO EVERY HOMEOWNER 
ONCE A MONTH AND TELL THEM 
EXACTLY HOW THE RISK HAS 
CHANGED IN TALK ABOUT HOW THEY 
CAN CHANGE THINGS TO PROTECT 
THEMSELVES. 
OKAY, LET'S GO BACK AND LOOK AT 
THOSE HOMES AND BURNED IN 2017 
AND 2018. 
THIS TIME LET'S SEE HOW THE 
DELOS WILDFIRE MODEL RATED THE 
WILDFIRE RISK OF THESE HOMES.  
AS YOU CAN SEE, WE CORRECTLY 
PREDICTED THAT THESE HOMES WERE 
LIKELY TO BURN. 
WE USED THIS ACCURACY TO 
UNDERSTAND WHICH AREAS ARE LESS 
LIKELY TO BURN, TO GO INTO 
THOSE AREAS AND BUILD A 
PROFITABLE PORTFOLIO OF HOMES. 
WE ARE NOT THE ONLY PEOPLE THAT 
UNDERSTAND THE VALUE OF OUR 
MODEL. 
THE REST OF THE INSURANCE 
INDUSTRY ALSO SEES THAT VALUE. 
WE HAVE SOLD AN ANALYTIC SIDE 
PRODUCT TO THREE DIFFERENT 
INSURANCE COMPANIES IN 
CALIFORNIA. 
HOW ARE WE ABLE TO UNDERSTAND, 
TO CREATE A MODEL THAT PERFORMS 
AS WELL? 
FOR THAT LET'S LOOK AT OUR 
TEAM. 
I HAVE EXPERIENCE IN AEROSPACE 
MANAGEMENT AND MASTERS IN 
AEROSPACE ENGINEERING FROM 
STANFORD, WE HAVE A PHYSICIST 
WITH EXPANSIVE PREDICTIVE 
MODELING, WILDFIRE SCIENCE 
PROFESSORS, SOME OF THE TOP IN 
THE WORLD. 
THEY HAVE COCREATED THE 
CALIFORNIA FIREFIGHTING 
DEPARTMENT WILDFIRE MODEL. 
WE HAVE APD HD AND ACTUARY, 
HOME INSURANCE AND. LET'S TAKE 
A LOOK THE MODEL. 
THERE ARE MANY DIFFERENT DATA 
INPUT LAYERS THAT GO INTO THE 
MODEL. 
THIS INCLUDES TEMPERATURE, 
WENT, SATELLITE IMAGERY, A 
VARIETY OF MICRO-PRODUCTION 
MODELS INCLUDING A FIRE WEATHER 
MODEL, WILDFIRE SIMULATIONS AS 
WELL AS A PROBABILISTIC 
IGNITION MODEL. 
ALL OF THESE ARE LAYERS THAT GO 
INTO AN AI ALGORITHM. 
THAT ALGORITHM IS TRAINED ON 
DECADES OF FIRE HISTORY AND 
OUTPUTS A FIRE RISK MAP. 
THAT MAP TELLS US WHERE TO 
WRITE INSURANCE, BUT ALSO HOW 
TO PRICE THAT INSURANCE. 
NOW LET'S GO AHEAD AND MOVE TO 
THE DEMO TO SHOW YOU HOW IT 
WORKS. 
HERE IS OUR WEBSITE. 
THIS IS WHERE A HOMEOWNER OR 
INDEPENDENT AGENT WILL COME TO 
GET A QUOTE. 
PUT IN THE ADDRESS, THEN PUT IN 
INFORMATION ABOUT THEMSELVES 
AND THEIR HOME. 
ONCE THEY DO THAT, THEY GET 
THIS SCREENED -- LET'S LOOK AT 
WHAT GOES INTO CREATING THAT 
QUOTE. 
WE ARE NOW GOING TO PULL UP THE 
MAP MODELING SOFTWARE AND SHOW 
YOU THE DATA INPUT LAYERS LIKE 
THE SATELLITE IMAGERY AND MICRO-
PRODUCTION MODELS. 
AGAIN, THOSE GO INTO THE AI 
ALGORITHM AND OUTPUT THIS. 
THIS IS OUR WILDFIRE RISK MAP 
OF CALIFORNIA. 
THOSE DOTS YOU SEE THERE ARE 
ADDRESSES THAT A BEEN PUT INTO 
THE WEBSITE. 
IMMEDIATELY GET IMPORTED IN 
THAT TABLE AS WELL THE 
INFORMATION PUT INTO THE 
WEBSITE, AND THE RISK SCORE IS 
IMMEDIATELY PENDING. 
THAT GOES TO THE ACTUARIAL 
MODEL AND THAT MODEL OUTPUTS A 
PRICE THAT GETS POSTED ON THE 
WEBSITE. 
THERE ARE 36 MILLION HOMES IN 
AMERICA THAT ARE HIGH RISK FOR 
HURRICANE OR WILDFIRE. 
WE SEE HALF OF THOSE AT LOWER 
RISK THAN THE INSURANCE 
COMMUNITY CREATED BY OUR MODEL. 
18 MILLIONC000 CREATES A $54 
BILLION PREMIUM POTENTIAL. 
WE'RE LAUNCHING AS A MANAGING 
GENERAL AGENT OR MGA AS ONE OF 
THE STANDARDS USED BY HIPPO, 
AND MANY OTHERS. 
THE IDEA IS IT WRITES THE 
INSURANCE, THE INSURANCE 
CARRIER PAYS OFF THE CLAIMS. 
WERE SELLING THROUGH 
INDEPENDENT AGENTS. 
WE ACTUALLY HAVE FIVE AGENCIES 
THAT HAVE INVESTED IN DELOS. 
THEY HAVE A COMBINED BOOK OF 
$150 MILLION  IN CALIFORNIA. 
WERE CURRENTLY LOOKING FOR 
INSURANCE CARRIER AND 
REINSURANCE COMPANY 
PARTNERSHIPS. 
IF YOU'RE ONE OF THOSE 
COMPANIES, PLEASE COME TALK TO 
US. 
THANK YOU. 
[ APPLAUSE ] 
>> JUDGES. 
>> SO IS ANY OF THE DATA THAT 
YOU ARE INGESTING INTO YOUR 
ALGORITHM PROPRIETARY? 
>> YES. 
SOME OF THE DATA WE ARE USING 
IS FROM GOVERNMENT, BUT WE HAVE 
QUITE A FEW LAYERS THAT ARE 
PROPRIETARY SUB MODELS THAT THE 
TEAM HAS BEEN BUILDING OVER 
YEARS. 
THOSE DATA SOURCES INCLUDE SOME 
SIMULATIONS, ETC., WE HAVE DONE 
WITH OUR TEAM. 
>> OKAY. 
>> YOU MENTIONED THERE WERE 36 
MILLION HOMES THAT RISK WHETHER 
IT IS FIRE OR HURRICANE AND 18 
MILLION ARE LOWER RISK, WHERE 
MAYBE THEY WOULD NOT HAVE 
GOTTEN INSURANCE BEFORE, BUT 
YOU WOULD BE ABLE TO PROVIDE 
THAT INSURANCE. 
ULTIMATELY, IF THERE IS A HIGH 
RISK HOME, IS THERE NO ONE WHO 
WILL ENSURE THAT ONE? 
BECAUSE AT THIS POINT YOU'RE 
REALLY BIFURCATING THE MARKET 
TO BE ABLE TO SHOW WHO ISN'T 
GOING TO GET INSURANCE. 
>> THERE ARE PLENTY OF HOMES WE 
WILL SAY NO TO. 
THERE ARE HOMES THAT ARE TOO 
HIGH RISK. 
IT IS NOT A GOOD FINANCIAL 
DECISION. 
WE WANT TO HELP PEOPLE. 
THE ENTIRE IDEA WAS TO REDUCE 
LOSS THROUGH SHARING 
INFORMATION ABOUT RISK. 
FOR A LOT OF PEOPLE TO BE ABLE 
TO DO THAT AND PROVIDE AN 
INSURANCE POSSIBLY. 
BUT YOU CAN'T ENSURE EVERY 
HOME. 
THAT IS NOT SMART. 
>> THAT WAS GOING TO BE MY 
QUESTION. 
TRY TO UNDERSTAND THE MISSION 
OF THE COMPANY. 
THE MISSION TO GET MORE 
COVERAGE FOR MORE HOMEOWNERS, 
OR TO INCREASE PROFITABILITY 
FOR CARRIERS. 
BECAUSE I HAVE THE SAME 
QUESTION, WHICH IS, IF YOU 
IDENTIFY A LOW RISK HOUSE IS 
HIGH RISK AND A HIGH RISK HOUSE 
AS LOW RISK, IT IS A SHELL 
GAME. 
YOU'RE JUST MOVING THE RISK 
FROM ONE HOUSE TO ANOTHER. 
DO YOU THINK IT IS NET ADDS IN 
TERMS OF COVERAGE? 
OR IS THIS REALLY ABOUT HIGHER 
PROFITABILITY FOR CARRIERS BY 
SHARPER UNDERWRITING? 
>> A GREAT QUESTION. 
THE FACT THAT WE ARE ABLE TO 
PRODUCE A PROFITABLE PORTFOLIO 
SHOWS THE ADVANTAGE OF OUR 
MODEL. 
BUT THE REASON WHY WE GOT INTO 
THIS. 
WE STARTED THIS COMPANY 
ORIGINALLY TO REDUCE WILDFIRE 
LOSSES. 
AND WE FOUND THAT THE ONLY WAY 
TO CREATE A LARGE PROFITABLE 
COMPANY THAT GETS ENOUGH 
REVENUE TO CONTINUALLY TURN THE 
WHEEL OF INNOVATION, WILDFIRES 
ARE CHANGING. 
YOU HAVE TO CONSTANTLY UPDATE 
MODELS AND UNDERSTAND THE NEW 
PERIL. 
WE WANTED TO BE ABLE TO TAKE 
THESE LARGE MODELS AND EXPLAIN 
TO EACH INDIVIDUAL WHAT THEY 
CAN DO TO PROTECT THEMSELVES. 
WHEN A CLIMATE SCIENTIST SAYS 
THE ATMOSPHERE IS WARMING TO 
DEGREES, WHAT DOES THAT MEAN TO 
YOU WHEN YOU LEAVE YOUR HOME 
EVERY MORNING? 
WE WANT TO BE ABLE TO TAKE THIS 
DATA THAT WE WERE GATHERING AND 
USE IT TO IMPACT EACH 
INDIVIDUAL. 
FOR PEOPLE THAT LIVE IN WELFARE 
AREAS WE WANT TO GIVE THEM, WE 
ARE GIVING THEM THE INFORMATION 
TO BE ABLE TO PROTECT 
THEMSELVES. 
AND THERE ARE HOMES THAT ARE 
TOO HIGH OF RISK, BUT WE'RE 
GOING TO ENSURE THE ONES WE 
CIELO VISTA CREATE THE COMPANY 
WE NEED AND THEN GIVE THEM THIS 
ACTIVE RISK MITIGATION SERVICE 
SO THEY CAN COME AS A 
POPULATION, SLOWLY MOVE HOMES 
TOWARD WILD FIRED HARDENED IN 
THE UNITED STATES. 
>> I HAVE TWO QUESTIONS. 
SOMEWHAT RELATED. 
YOU TALK ABOUT THE COMPETITIVE 
ENVIRONMENT? 
AND IN NOT MAKING THIS DATA 
PUBLIC, DO YOU FEEL LIKE YOU 
HAVE A MORAL DILEMMA? 
THIS KIND OF GOES TO THE OTHER 
POINT. 
YOU WANT TO EDUCATE PEOPLE ON 
WHERE THEY ARE LIVING AND WHAT 
THE RISKS ARE? 
>> THE MORAL DILEMMA QUESTION 
IS SOMETHING WE HAVE TALKED A 
LOT ABOUT INTERNALLY. 
WE ARE VERY CLOSE TO CALFIRE, 
THE FIREFIGHTING DEPARTMENT. 
WE'VE HAD A LOT OF 
CONVERSATIONS ABOUT THAT. 
I WILL ADDRESS THAT QUICKLY. 
OUR PROFESSORS HAVE WORKED IN 
NGOS AND SEVERAL GOVERNMENTS 
FOR THEIR ENTIRE CAREER. 
AND WHILE IT IS A VERY NOBLE 
EFFORT, THE CREATED IMAGING 
TECHNOLOGY IN ORDER TO REALLY 
HAVE THE RESOURCES TO BE ABLE 
TO CHANGE HOMES, HELP PEOPLE 
WITH THINGS. 
BEING PRIVATE IN SOME WAY IS 
NECESSARY. 
HOWEVER, WE HAVE A CLOSE 
RELATIONSHIP WITH CALFIRE, AND 
WE HAVE BEEN IN A LOT OF 
DISCUSSIONS ABOUT NEW 
CONSTRUCTION IN WILDFIRE AREAS 
THAT WE CAN PARTICIPATE BACK BY 
SHOWING THE BEST WAY TO 
CONSTRUCT THEIR HOMES. 
AND THEN, WILL HAVE AN 
OPPORTUNITY TO ENSURE THESE 
HOMES BUILT IN THE CORRECT WAY. 
THE COMPETITIVE ENVIRONMENT. 
SO AFTER THESE TWO YEARS, 
ALMOST EVERY INSURANCE COMPANY 
REALLY DID PULL OUT. 
THERE ARE A FEW NON-ADMITTED 
CARRIERS THAT DO RIGHT, THE 
AVERAGE PREMIUM CURRENTLY FOR A 
NONADMITTED POLICY IS $8000 PER 
HOME. 
THE AVERAGE IN CALIFORNIA IS 
$1000 FOR NON-HIGH RISK HOMES. 
AND SO, THOSE ARE VERY OLD 
SCHOOL, BEEN AROUND FOR A 
CENTURY, TYPE OF COMPANIES THAT 
WRITE ALL TYPES OF HIGH RISK. 
WE ARE TAKING ADVANTAGE OF NEW 
DATA, NEW TECHNOLOGY TO BE ABLE 
TO REALLY FOCUS ON WILDFIRE AND 
HURRICANE. 
WE HAVE SOME HURRICANE MODELS 
WE'VE ALREADY GOTTEN IN THE 
WORKS. 
TO BE ABLE TO UNDERSTAND THAT 
SPECIFIC PERIL AND MAKE THAT A 
PROFITABLE PORTFOLIO IN THAT 
AREA. 
>> WE HAVE TIME FOR A REALLY 
QUICK QUESTION. 
>> ALL RIGHT. 
GIVE IT UP FOR DELOS.  
DELOS --  [ APPLAUSE ] 
>> THAT MEANS IT IS TIME TO 
BRING OUT THE NEXT BATTLEFIELD 
START A. THAT START UP IS SEND 
ME. 
>>
FOR YEARS NOW MY WIFE AND I 
HAVE BEEN ABROAD. 
MY WIFE CAME TO THE UNITED 
STATES WHEN SHE WAS JUST ONE-
YEAR-OLD. 
SO A LOT OF FAMILY LIVES 
INTERNATIONALLY. 
WE'VE EXPERIENCED EVERY PROBLEM 
IMAGINABLE AS IT RELATES TO 
SENDING MONEY, LOST FUNDS, 
DELAYED DELIVERY OF FUNDS, HIGH 
COST, LOW TRANSPARENCY. 
WE HAVE BEEN PART OF THE $600 
BILLION A YEAR PROBLEM ALONG 
WITH 232 MILLION PEOPLE THAT 
HAVE FAMILY LIVING AROUND THE 
WORLD. 
WE HAVE SOLVED THIS PROBLEM. 
MANY CASES PEOPLE WILL GET A 
PAPER CHECK, DRIVE ALL OVER 
TOWN AND GIVE UP 10% OF THEIR 
MONEY BEFORE MONEY GETS HOME TO 
MOM. 
TODAY WE LAUNCHED SENDME, A 
MOBILE APP THAT ALLOWS  FOR 
SERVING A NON-CONSUMPTION 
MARKET. 
IT IS A GLOBAL FLEX PAY 
SOLUTION THAT INTEGRATES WITH 
AN EMPLOYER PAYROLL SYSTEM AND 
ALLOWS EMPLOYEES TO SEND 
PAYROLL FUNDS A CROSS-BORDER, 
TOP UP MOBILE PHONES AND PAY 
INTERNATIONAL BILLS. 
WITH EACH 1% REDUCTION IN THE 
COST OF THE INTERNATIONAL 
TRANSFERS, $6 BILLION GOES INTO 
THE HANDS OF RECIPIENTS. 
WHAT WE HAVE CREATED IS A 
SOLUTION THAT IS HIGH 
TRANSPARENCY, LOWER-COST. 
WE CHARGE AS LITTLE AS ONE 
DOLLAR, WHERE COMPETITORS ARE 
CHARGING FIVE DOLLARS, $50 AND 
UP AND WE HAVE A MUCH MORE 
EFFICIENT PROCESS. 
LET ME SHOW YOU HOW THIS WORKS.
YOU WILL NOTICE I HAVE 
AUTHENTICATED TO MY EMPLOYEE 
ACCOUNT INTO THAT VIA TOOL 
FACTOR AUTHENTICATION. 
YOU NOTICE THE ACCOUNT BALANCE. 
IT IS HELD IN A FINANCIAL 
INSTITUTION AND IS FDIC 
INSURED, WHICH PUTS EMPLOYERS 
AT EASE. 
EACH PAY PERIOD A PORTION OF MY 
INCOME FLOWS OVER INTO THE 
SMALL IT -- WALLET, AND ALLOWS 
ME TO SEND FUNDS ABROAD. 
I WILL SEND FUNDS TO JUAN 
RODRIGUEZ, OUR EMPLOYEE OF 
SENDMI IN MONTERREY MEXICO.  
WE HAVE BUILT A DIRECT 
CONNECTION TO THE CENTRAL BANK 
OF MEXICO, WHICH ALLOWS US TO 
DO AN INSTANT TRANSFER TO 
MEXICAN BANK ACCOUNTS. 
I'M GOING TO GO AHEAD AND SEND 
$53. 
THAT EQUATES TO 1010 PESOS. 
I'M ONLY GOING TO BE CHARGED 
ONE DOLLAR, WHICH IS ONLY 20% 
OF THE INDUSTRY AVERAGE FOR 
SETTING FUNDS ABROAD. 
WE HIT SEND, YOU NOTICE THE 
SPINNER POP UP. 
ONES THAT COMPLETES, THE FUNDS 
ARE SITTING IN MEXICO. 
SO LET'S GO AHEAD AND ROPE IN 
ONE SITTING IN MEXICO RIGHT NOW 
VIA VIDEOCONFERENCE TO VERIFY 
HE HAS RECEIVED THE FUNDS. 
HOW ARE YOU? 
>> FIND. 
>> WE ARE HERE AT TECH CRUNCH 
BATTLEFIELD IN SAN FRANCISCO. 
I JUST SENT YOU SOME MONEY. 
I WOULD LOVE FOR YOU TO POP 
INTO YOUR ACCOUNT AND LET US 
KNOW WHAT YOU RECEIVED. 
>> SURE THING. 
I LOGGED IN AHEAD OF TIME. 
I AM REFRESHING MY LIST. 
I CAN SEE I HAVE 1010 PESOS 
TRANSFERRED FROM PAUL AT 3:32 
PM CENTRAL TIME. 
>> IT IS THAT EASY FOLKS. 
BACK TO THE PRESENTATION. 
WE ALLOW FOR -- WE CAN ALSO 
SEND FUNDS TO A NETWORK OF OVER 
10,000 ATMS IN MEXICO WITH A 16 
DIGIT CODE A RECIPIENT CAN SHOW 
UP AT THE ATM AND RETRIEVE 
FUNDS. 
IT IS IMPORTANT TO NOTE THERE 
IS VIRTUALLY NO 
INTEROPERABILITY BETWEEN BAKING 
NETWORKS. 
WE ARE CREATING THAT 
INTEROPERABILITY BY BUILDING 
PARTNERSHIPS. 
WE PARTNERED WITH THE CENTRAL 
BANK OF THE UNITED STATES. 
WE HAVE A DIRECT CONNECTION TO 
THE CENTRAL BANK OF MEXICO. 
AND WE'RE WORKING ON ADDITIONAL 
CONNECTIONS. 
WHAT WE ARE DOING IS CREATING A 
NEW CATEGORY. 
WE COMBINE PAYROLL WITH MONEY 
SERVICE BUSINESS, AND IN SO 
DOING, SHIFT USER BEHAVIOR, 
REDUCE REGULATORY COST AND 
REDUCE CUSTOMER ACQUISITION 
COST. 
WE TAP INTO THE $33 BILLION 
THAT IS TRAVELING BETWEEN THE 
U.S. AND MEXICO AS OUR 
BEACHHEAD MARKET, BUT THIS IS 
EASILY EXTENSIBLE TO THE $134 
BILLION MARKET OUTBOUND FOR THE 
UNITED STATES. 
AND THAT IS JUST THE BEGINNING. 
WE CHARGE BETWEEN ONE DOLLARS 
AND FOUR DOLLARS UP FRONT AND 
2% IN FOREIGN EXCHANGE, BUT 
ULTIMATELY WE ARE DRIVING THE 
COST OF THE INTERNATIONAL 
TRANSFER TO ZERO. 
WE OFFER VALUE ADDED SERVICES 
LIKE CROSS-BORDER BILL PAY AND 
PHONE TOP UP SERVICES, 
INSURANCE SERVICES, SO THAT 
THAT GETS REDUCED TO NOTHING. 
WE ALSO SHIPPED THE PAYER FROM 
THE EMPLOYEE TO THE EMPLOYER. 
WE DISTRIBUTE THE PRODUCT THEIR 
BANKS, PAYROLL PROVIDERS AND 
DIRECT TO EMPLOYERS, AND WE ARE 
CURRENTLY IN ACTIVE 
CONVERSATION WITH SOME OF THE 
INDUSTRY LEADING PLAYERS IN 
THESE VERTICALS. 
I HAVE LIVED MEXICO, I HAVE 
LIVED IN ARGENTINA, I HAVE A 
RICH HISTORY IN FINANCIAL 
SERVICES. 
THE COUPLE OF FOUNDER 
EXPERIENCES AND AN EXIT. 
MY COFOUNDER IS A SERIAL 
PRINTER. 
HE STARTED THE FIRST TECH FUND 
IN MEXICO AND HAS MULTIPLE 
EXITS. 
EVERY SINGLE MEMBER OF OUR TEAM 
HAS DEEP EXPERIENCE WITH THIS 
PARTICULAR PROBLEM, AND WE ARE 
THE TEAM TO SOLVE IT. 
SO EMPLOYERS, DIVERSIFY YOUR 
BENEFITS OFFERING BY PARTNERING 
WITH SENDMI. 
EMPLOYEES, DEMAND THAT YOUR 
EMPLOYERS PARTICIPATE WITH US 
AND SAVE MONEY.  
AND BANKS AND PAYROLL 
COMPANIES, PARTNER WITH US TO 
BRING GLOBAL FLEXIBLE PAYROLL 
TO THE WORLD. 
THANK YOU. 
[ APPLAUSE ] 
>> JUDGES. 
FIRST QUESTION. 
>> WHO IS THE DECISION-MAKER AT 
THE EMPLOYER WHEN YOU TRY TO 
SELL AND CONVINCE THEM TO HAVE 
SENDMI  AS PART OF THE 
SOLUTION? 
>> MOST TYPICALLY THE HEAD OF 
HR, BUT OFTEN TIMES WE ARE 
TALKING TO ANY OF THE C-SUITE. 
>> AND ARE THERE ANY USUAL 
HURDLES THEY HAVE CONCERNS 
ABOUT? 
ANYTHING THAT WOULD CAUSE THEM 
TO FEEL THAT 
>> THE FASCINATING PART IS THAT,
WE ARE EARLY, BUT WE HAVE GONE 
OUT AND AS WE HAVE SOLD THIS 
PRODUCT, WHEN WE GET TOO 
DECISION-MAKER, WE HAVE 100% 
HIT RATE. 
THE MOST TEPID RESPONSE WE'VE 
GOTTEN FROM A PLASTICS COMPANY. 
THEY SAID COME SHOW UP AND 
SPEND SOME TIME AT OUR 
FACILITIES ON A SATURDAY, AND 
IF YOU CAN SIGN PEOPLE UP, YOU 
CAN OFFER IT. 
>> WE'RE REALLY THE ONLY GROUP 
THAT IS APPROACH THEM WITH THIS 
NEW PAYROLL BENEFIT. 
>> SO THE VALUE PROPOSITION TO 
EMPLOYER IS A RETENTION? 
>> EXACTLY. 
EMPLOYEE RETENTION. 
IT PROVIDES AN OPPORTUNITY FOR 
EMPLOYEES THAT ARE CASHING A 
PAYCHECK, LEAVING WORK, SENDING 
MONEY HOME TO ACTUALLY SAVE A 
LITTLE TIME. 
BUT ALSO GIVES THEM A LITTLE 
PAYRAISE AND BRINGS THEM INSIDE 
THE FINANCIAL SYSTEM. 
THERE IS NO REASON FOR THE 
PAYCHECK TO LEAVE THE FINANCIAL 
SYSTEM. 
LEAVITT INSIDE OF THEM BECOMES 
A FINANCIAL INCLUSION PRODUCT 
PROVIDING OTHER BENEFITS. 
>> HOW DO YOU ACQUIRE THE DEALS 
WITH THE U.S. FED AND CENTRAL 
BANK OF MEXICO? 
>> YEARS OF PAIN. 
IT IS ABSOLUTELY A MOAT BY THE 
WAY. 
THERE IS A SPECTACULAR AMOUNT 
OF WORK THAT HAS GONE INTO WHAT 
WE HAVE CREATED HIM. 
PEOPLE DON'T UNDERSTAND HOW 
DIFFICULT IT IS TO DO THAT. 
>> COULD YOU TALK MORE ABOUT 
WHY IT IS SO DIFFICULT? 
>> WE STARTED BY USING EXISTING 
FINANCIAL RAILS. 
SAYING, LET'S USE CROSS-BORDER 
TO SEND MONEY. 
IN THE FIRST TEST, THE MONEY 
DID NOT MAKE IT TO THE 
RECIPIENT, AND THERE IS NOBODY 
TO CALL. 
SO CROSS-BORDER PAYMENTS IS 
ACTUALLY A VERY DIFFICULT AREA. 
IT IS EXPENSIVE. 
SO THE U.S. FINANCIAL SYSTEM IS 
NOT CONNECTED TO THE MEXICAN 
FINANCIAL SYSTEM. 
SO WE ARE THE GLUE THAT PUTS 
THEM TOGETHER. 
SO WE HAD TO BUILD AN API 
CONNECTION INTO THE CENTRAL 
BANK OF MEXICO. 
WE HAVE ACCESS TO A FED LINE IN 
THE UNITED STATES. 
AND SO, WE TAKE THOSE SERVICES 
TO MOVE AROUND THE UNITED 
STATES AND MEXICO. 
WE ARE THE GLUE CREATING THE 
DIGITAL WALL. 
ALL THE MONEY GOES INTO THE 
OMNIBUS ACCOUNT FOR THE 
INDIVIDUAL. 
ALL THE EMPLOYEES. 
WE MANAGE THE SUBACCOUNT AND 
CAN MOVE IT AROUND CROSS-
BORDER. 
>> HOW ARE YOU BUILDING AND 
PRIORITIZING YOUR SALES FUNNEL 
INTO THE EMPLOYERS? 
WHAT IS YOUR FIRST TARGET SET 
FOR EMPLOYERS? 
>> IF YOU THINK ABOUT WHAT 
WE'RE DOING HERE. 
WE ARE ATTEMPTING TO BRING 
CLEAN FUNDS INTO THE SYSTEM. 
THE REASON WE TAP INTO PAYROLL 
IS THAT, INSTEAD OF JUST TAKING 
MONEY OFF THE STREET, WE'RE 
BUILDING A NATURAL BARRIER AND 
SAYING WE KNOW EXACTLY WHERE 
THESE FUNDS ARE COMING FROM BUT 
THEY'RE COMING FROM AREA 
COOPERATION OR SOMEBODY ELSE. 
SO WE GO TO THE TOP END OF THE 
MARKET BECAUSE THE TOP END OF 
THE MARKET MAKES THE MOST SENSE 
TO MAKE SURE THAT THOSE, THAT 
THE INTEGRAL SYSTEM STAYS 
INTACT. 
AND THEN WE MOVE DOWNSTREAM 
FROM THEIR. 
TO ANSWER YOUR QUESTION, IT IS 
THE FORTUNE 1000 THAT HAVE 
VARIOUS THOUSANDS OF EMPLOYEES 
WITH FOREIGN NATIONALS WORKING 
FOR THE. 
>> WHAT IS THE SIZE OF YOUR 
SALES TEAM? 
>> YOU ARE LOOKING AT IT. 
IT'S TOUGH IN SIX MINUTES TO 
GET A DEEP UNDERSTANDING. 
>> HOW DO YOU COMPARE AND 
CONTRAST THE SALES TO PAYROLL 
SOLUTIONS IN NEW YORK? 
WHERE DO YOU START AND THEY 
STOP? 
>> GOOD QUESTION. 
WE ARE NOT CROSS-BORDER PAYROLL 
PER SE. 
LIKE YOU'RE PAYING THE EMPLOYEE 
IN THE EMERGING MARKET. 
YOU'RE PAYING A U.S. EMPLOYEE. 
YOUR ENABLING THAT EMPLOYEE TO 
THEN PAY BILLS BACK HOME FOR 
THEIR MOM, SEND MONEY HOME, 
SEND MONEY TO THE ATM. 
GET A LOAN. 
YOU'RE PUTTING THAT PERSON 
INSIDE THE U.S. FINANCIAL 
SYSTEM, AS OPPOSED TO JUST 
BEING A PURE PAYROLL PROCESS. 
>> OKAY. 
SOME OF THE SAME USE CASES OUT 
OF COUNTRY, SOME SIMILAR USE 
CASES -- MAYBE I AM NOT 
FOLLOWING THAT ASPECT. 
>> WE'RE NOT PAYING PEOPLE 
CROSS-BORDER. 
>> IN THE UNITED STATES. 
OKAY. 
>> IF I UNDERSTAND CORRECTLY, 
THE RECIPIENT HAS TO HAVE A 
BANK ACCOUNT. 
>> THAT IS THE INTERESTING 
THING. 
A 70s GETTING A PAPER CHECK, 
BASICALLY ALL WE'RE SAYING IS, 
YOU CAN CONTINUE TO GET THAT 
PAPER CHECK, WE WILL CARVE OFF 
A PORTION OF AND DIRECTED TO 
THE WALLET, AND THEY CAN 
OPERATE AT THEIR. 
BECAUSE -- 
>> I MET THE CROSS-BORDER 
RECIPIENT. 
AT LEAST IN THE DEMO YOU SHOWED 
IN MEXICO. 
IT WAS ACTUALLY DEPOSITED INTO 
A MEXICAN BANK ACCOUNT. 
I GUESS I WAS TRYING TO 
UNDERSTAND WHAT PERCENT OF THE 
MARKET IN THIS GLOBAL TRANSFER 
MARKET, WHICH WE KNOW IS 
ENORMOUS, THAT RECIPIENTS 
ACTUALLY HAVE BANK ACCOUNTS. 
>> CERTAINLY FOR DEMO PURPOSES, 
IT MAKES MORE SENSE TO SHOW TO 
SEND TO A BANK ACCOUNT. 
THE ATM NETWORK IS A GREAT WAY 
FOR MEXICANS TO RETRIEVE FUNDS. 
AND THEN WE ARE IN 
CONVERSATIONS WITH SOME MAJOR 
PLAYERS THAT WOULD ALLOW US TO 
GET INTO THE TOP MARKETS AROUND 
THE WORLD. 
SO ALL OF LATIN AMERICA, 
SOUTHEAST ASIA, ETC. 
>> SO THE PHYSICAL CASHEL, YOU 
CAN PICK UP MONEY AT THE ATM? 
YOU DON'T HAVE TO HAVE ACCESS 
TO -- YOU DON'T HAVE TO HAVE 
ACCESS TO A BANK ACCOUNT BUT 
THE BANK IS JUST ONE OF FOUR 
MECHANISMS IN TERMS OF HOW TO 
TRANSFER VALUE INTO EMERGING 
MARKETS. 
>> ONE MORE ROUND OF APPLAUSE 
FOR SENDMI. 
[ APPLAUSE ]  LET'S BRING OUT 
THE NEXT STARTUP. 
RENDERER. 
COME ON OUT. 
>>
LARGE PUBLIC CLOUDS LIKE AWS 
ARE WORTH OVER $500 BILLION. 
BUT USING THEM IS LIKE PULLING 
TEETH. 
EVERY YEAR BUSINESSES SPEND 
BILLIONS OF DOLLARS IN 
ENGINEERING COSTS JUST TO 
MANAGE SERVERS ON AWS. 
I SAW THIS FIRSTHAND AT 
STRIPED, WHICH I HELPED LAUNCH 
AND GROW TO A $5 BILLION 
COMPANY, BUT NOT WITHOUT A 
MASSIVE DEV OPS TEAM. 
AFTER STRIPED, I BUILT A LOT OF 
APPS TO FIGURE OUT WHAT I WAS 
GOING TO DO NEXT. 
BUILDING THESE APPS WAS EASY. 
BUT HOSTING THEM WAS AGONIZING. 
I HAD TO SPIN UP VM, INSTALL 
NETWORKING, SETUP SSL, AND A 
TON OF OTHER THINGS FOR EVERY 
SINGLE APP. 
IT WAS TEDIOUS, IT WAS ERROR-
PRONE, AND IT HAD TO STOP. 
THIS IS HOW RENDER WAS BORN.  
RENDER IS A COMPLETELY 
AUTOMATED  PLATFORM PROVIDER. 
RENDER LETS YOU DEPLOY ANYTHING 
FROM A SIMPLE STATIC SITE TO 
COMPLEX APPLICATION CLUSTERS. 
AND YOU CAN DO IT FASTER THAN 
ON ANY OTHER CLOUD AND WITHOUT 
MANAGING SERVERS AT ALL. 
AND RENDER FITS INTO YOUR 
EXISTING WORKFLOW. 
SIMPLY PUSH  YOUR CODE TO GET. 
WE AUTOMATE EVERYTHING FROM 
THEIR. 
THIS INVOLVES BUILDING AND 
DEPLOYING YOUR CODE, UPDATING 
AND SECURING THE UNDERLYING 
SOFTWARE, SCALING YOUR APPS AND 
AUTOMATICALLY LOAD BALANCING 
BETWEEN THEM, AND FINALLY, 
ALERTING YOU TO POTENTIAL 
PROBLEMS. 
NOW, I REALIZE I AM MAKING A 
BOLD CLAIM. 
SO LET'S SEE THIS IN ACTION. 
YOU MAY HAVE HEARD OF MATTER 
MOST. 
IS LIGHT SLACK, BUT FOR 
COMPANIES WHO WANT TO HOST CHAT 
THEMSELVES. 
TYPICALLY MATTER MOST REQUIRES 
A WHOLE TEAM OF DEV OPS 
ENGINEERS TO MANAGE. 
BUT RENDER MAKES IT EFFORTLESS. 
ALL I NEED TO DO IS TO CLICK 
THE DEPLOY TO RENDER BUTTON ,  
WHICH BRINGS ME TO MY RENDER 
DASHBOARD LISTING ALL THE 
SERVICES IT IS GOING TO DEPLOY. 
I CLICK APPROVE, AND THAT IS IT.
RENDER IS NOW THE POINT MY 
MATTER MOST CLUSTER, INCLUDING 
A DATABASE, OBJECTSTORE, SEARCH 
ENGINE AND MULTIPLE WEB 
SERVERS.  
RENDER IS ALSO PROVISIONING SSL 
AND LOAD BALANCERS BEHIND THE 
SCENES, AND I DON'T HAVE TO 
LIFT A FINGER FOR ANY OF IT.  
THESE SERVICES CAN TAKE A FEW 
MINUTES TO SPIN UP, AND WE HAVE 
LIMITED TIME. 
SO WE'RE GOING TO SWITCH OVER 
TO AN EXISTING MATTER MOST 
INSTANCE OF RENDER. 
RIGHT NOW  AND IS RUNNING ON 
RENDER MOST.COM . AND YOU CAN 
ALL GO THERE RIGHT NOW TO SIGN 
UP. 
IT IS READY TO SCALE TO 
THOUSANDS OF USERS. 
LET'S TALK ABOUT BUT WE JUST 
SAW. 
INSTALLING MATTER MOST ON 
RENDER REQUIRES MINUTES. 
BUT IT TAKES DAYS OF SET UP AND 
CONSTANT ONGOING MAINTENANCE ON 
AWS.  
AND IT IS IT EVEN POSSIBLE TO 
DO THIS ON.  
BUT RENDER MAKES INSTANT 
THROUGH THREE MAJOR INNOVATIONS 
THAT WE ARE LAUNCHING ON STAGE 
TODAY.  
EVERY RENDER SERVICE CAUSE 
BUILT-IN SERVICE DISCOVERY, 
PRIVATE NETWORKING AND LOAD-
BALANCING.  
RENDER  IS THE FIRST FULLY 
MANAGED CLOUD TO OFFER SSD WITH 
AUTOMATIC BACKUPS AND ONE CLICK 
RESTORE. 
AND YOU CAN DEFINE ALL YOUR 
RENDER SERVICES AND JUST ONE 
FILE. 
YOU CAN UPDATE YOUR 
INFRASTRUCTURE  BY SIMPLY 
PUSHING THIS FILE. 
HOW COOL IS THAT? 
LET'S LOOK AT THE COMPETITION. 
CLOUDS LIKE AWS CLAIM TO BE 
DEVELOPER FRIENDLY, BUT JUST 
ASK ANY DEVELOPER, AND THEY 
WILL TELL YOU JUST HOW 
FRUSTRATING THEY CAN BE. 
ON THE OTHER END, MANAGE CLOUDS 
LIKE THE ROKU HAVE STAGNATED 
UNDER SALES FORCE AND ART 
MISSING ESSENTIAL FEATURES LIKE 
SSD AND PRIVATE NETWORKING. 
THERE ALSO MUCH MORE EXPENSIVE. 
JUST TWO GIGABYTES OF RAM COSTS 
$250 A MONTH ON HAROKU COMPARED 
TO $55 PER MONTH ON RENDER. 
WE GIVE YOU THE BEST OF BOTH 
WORLDS, AMAZING EASE-OF-USE 
COMBINED WITH TREMENDOUS 
POSSIBILITY. 
AND WE ARE DOING THAT IN A 
MARKET THAT IS MASSIVE AND 
GROWING QUICKLY.  
RIGHT NOW WE'RE FOCUSED ON THE 
PLATFORM AS A SERVICE MARKET 
WORTH $20 BILLION. 
LONGER-TERM, WE ARE TARGETING 
THE ENTIRE CLOUD INFRASTRUCTURE 
AS A SERVICE MARKET WORTH $100 
BILLION JUST THREE YEARS FROM 
NOW. 
BUT LET'S TALK REAL NUMBERS. 
THE RENDER REVENUE HAS GROWN BY 
OVER 50% MONTH OVER MONTH FOR 
THE LAST SIX MONTHS STRAIGHT. 
AND THIS GROWTH HAS BEEN 
ENTIRELY ORGANIC.  
WE ARE NOW SERVING OVER 100 
MILLION HD PT REQUESTS EVERY 
WEEK. 
LEADING OPEN SOURCE PROJECTS 
LIKE REACT, AND GATSBY HAVE ALL 
SELECTED RENDER AS AN OFFICIAL 
HOSTING OPTION. 
ARE ALSO ONE OF JUST FOUR 
OFFICIAL CLOUD PARTNERS  FOR 
KIDS LAB. 
WE HAVE THOUSANDS OF AMAZING 
USERS. 
INCLUDING A LEADING RESIDENT -- 
PRESIDENTIAL CAMPAIGN USING 
RENDER FOR ALL OF THEIR 
INFRASTRUCTURE.  
SO IF YOU ARE A DEVELOPER OR 
FOUNDER, WHO IS FRUSTRATED WITH 
AWS OR HEROKU, AND YOU'RE 
LOOKING TO SAVE BIG ON 
ENGINEERING COSTS,  AUTOMATE 
YOUR CLOUD HOSTING TODAY BY 
SIGNING UP ON RENDER.COM. 
THANK YOU. 
[ APPLAUSE ]  
>> JUDGES. 
>> AT WHAT POINT IN A COMPANY 
DEVELOPMENT DOES THE AUTOMATION 
START TO FALL APART AND 
CUSTOMIZATION START TO BECOME 
MORE NEEDED? 
>> WE HAVE NOT FOUND THAT POINT 
YET, AND THIS IS ONLY POSSIBLE 
NOW BECAUSE OF THE ADVENT OF 
THINGS LIKE CONTAINERS. 
BECAUSE CONTAINERS LET YOU 
ENCAPSULATE NOT JUST YOUR 
APPLICATION, BUT ALL THE 
DEPENDENCIES ALONG WITH YOUR 
APPLICATION. 
SO BACK WHEN HEROKU WAS STARTED 
IN 2009, THEY DIDN'T REALLY 
HAVE ANYTHING LIKE THIS. 
SO RENDER IS USING THE RECENT 
ADVANTAGES, RECENT ADVANCES IN 
TECHNOLOGY OVER THE LAST TWO OR 
THREE YEARS  TO MAKES THINGS 
REALLY EASY FOR PEOPLE WHO CAN 
CONTAINERIZED THEIR APPS. 
>> SO THIS IS A GIANT MARKET 
WITH VERY DEEP-POCKETED 
COMPETITORS. 
WHAT IS YOUR MARKET ENTRY POINT?
WHERE ARE YOU GOING TO -- I 
MEAN, RIGHT NOW IS DESCRIBED AS 
LIKE YOU CAN BE ALL THINGS TO 
ALL PEOPLE, BUT I AM SURE THERE 
ARE SOME SEGMENTS FOR WHOM THE 
PAIN POINT IS JUST MORE EXTREME 
THAN OTHERS. 
SO WHAT IS THAT MARKET ENTRY 
POINT FOR YOU? 
>> YOU'RE NOT LOOKING AT GIANT 
ENTERPRISES RIGHT NOW. 
WE DON'T WANT PEOPLE WHO ARE 
RUNNING THOUSANDS OF MACHINES 
ON AWS TO SWITCH TO RENDER. 
THAT IS NOT GOING TO HAPPEN AND 
ALSO WILL BREAK EVERYTHING FOR 
THEM. 
SO THEY SHOULD NOT. 
OUR CURRENT MARKET IS 
DEVELOPERS AND STARTUPS.  
WE ARE IN MANY WAYS SKATING TO 
WHERE THE PUCK IS GOING BECAUSE 
EVERYONE ELSE SEEMS TO HAVE 
LOST FOCUS ON THIS PARTICULAR 
SEGMENT. 
WE ARE MAKING IT REALLY EASY 
FOR DEVELOPERS. 
JUST LIKE WITH STRIPED, I 
WORKED WITH THE TEAM TO MAKE IT 
EASIER FOR DEVELOPERS EARLY ON 
TO INTEGRATE PAYMENTS. 
WHAT ENDS UP HAPPENING WHEN YOU 
DO THAT IS, SOME OF THESE 
STARTUPS END UP BECOMING AIRBNB 
AND SNAP. 
AND THAT IS HOW YOU GET THE 
LARGE COMPANIES. 
>> SO WE HOPE TO SCALE. 
TO SCALE WITH SOME OF YOUR 
STARTUPS? 
>> WE WILL, YES. 
>> TO THAT END, WHAT YOU THINK 
THE BIGGEST CHALLENGES ARE 
GOING TO BE FOR YOU TO SCALE? 
>> FOR US TO SCALE? 
I THINK THAT WE NEED TO BE UP 
AT ALL TIMES FOR OUR USERS AND 
MAKE SURE WE ARE NOT MOVING 
FAST AND BREAKING THINGS. 
THAT IS NOT WHAT YOU DO WHEN 
YOU HOST. 
SO THE BIGGEST, NOT JUST 
CHALLENGE, BUT SOMETHING WE 
HOLD OURSELVES UP TO AS A 
STANDARD IS MAKING SURE THAT 
THE USER WORKLOADS ARE ALWAYS 
STABLE AND RELIABLE AT ALL 
TIMES. 
>> SO YOUR COMPETITORS LIKE AWS 
OVER THE YEARS HAVE BUILT SO 
MANY BELLS AND WHISTLES INTO 
THEIR SERVICE. 
I CAN GO ON AWS GO INTO THEIR 
MARKETPLACES AND GET THEIR 
PARTNERS PRODUCTS AND SERVICES. 
HOW DO YOU, ARE YOU GOING TO 
COPY THAT EFFECTIVELY? 
HOW DO YOU PROVIDE DATA 
>> WE NEVER WANT TO COPY AWS 
BECAUSE DATA 
>> BUT HOW DO YOU PROVIDE ALL 
OF THE ANCILLARY SERVICES? 
>> WE ACTUALLY HAVE AN ADD ON 
MARKETPLACE THAT WE LAUNCHED 
LAST WEEK. 
WE ARE PARTNERING WITH A 
COMPANY CALLED MANIFOLD THAT 
JUST STARTED OFFERING ADD-ON 
SERVICE AS A PRODUCT. 
AND SO, THEY ARE DOING ALL THE 
BUSINESS PARTNERSHIPS, AND WE 
ARE INTEGRATING WITH THEM 
TECHNOLOGICALLY. 
WE ALREADY HAVE COMPANIES LIKE 
LOG DNA AND SCOUT. 
SO WE WILL CONTINUE TO BUILD 
OUT MORE DEVELOPER PARTNERSHIPS 
WITH TOOLS LIKE THAT. 
WHICH MIGHT EVEN INCLUDE TOOLS 
ON AWS. 
>> THANK YOU. 
>> I KNOW YOUR EARLY ON, SO 
THIS ANSWER MIGHT BE PRETTY 
QUICK, HOW MUCH TURN HAVE YOU 
SEEN IN YOUR CUSTOMER BASE, AND 
IF THERE HAS BEEN CHURN, ONE OF 
THE MAIN WAS? 
>> THERE HAS NOT BEEN. 
THE THINGS ARE SEEING IS 
ACTUALLY THE OPPOSITE. 
ONCE YOU START USING RENDER FOR 
JUST ONE SERVICE, YOU END UP 
BRINGING ALL YOUR SERVICES 
OVER.  
SO THAT IS WHAT WE SAW WITH THE 
PRESIDENTIAL CAMPAIGN THAT IS 
USING RENDER FOR EVERYTHING 
PRISON STARTED USING IT FOR ONE 
TINY SERVICE AND OUR LIKES THIS 
IS SO MUCH BETTER THAN GOOGLE.  
AND NOW THEY ARE USING US FOR 
EVERYTHING. 
>> ONE OF THE INITIALS OF THE 
PRESIDENTIAL CANDIDATE? 
>> I AM NOT AT LIBERTY TO SAY. 
BUT IT WILL BE PUBLIC ON 
OCTOBER 15 BECAUSE THEY HAVE TO 
FILE THEIR FINANCIALS AND 
RENDER WILL BE PART OF THAT. 
>>  CAN YOU JUST WALK THROUGH 
FOR A TYPICAL CUSTOMER WHAT THE 
ROI IS? 
WHAT THEY WOULD TYPICALLY SPEND 
ON AWS OR ON GOOGLE, VERSUS 
USING RENDER? 
>> SURE.  
RENDER IS NOT GOING TO BE 
CHEAPER THAN AWS OR GOOGLE IN 
TERMS OF INFRASTRUCTURE COST . 
SPECIFICALLY, SERVERS, VM. 
BUT WE'RE GOING TO SAVE YOU 
HUNDREDS OF THOUSANDS OF 
DOLLARS BECAUSE YOU DON'T HAVE 
TO HIRE EXPENSIVE DEV OPS 
ENGINEERS. 
THAT IS ONE OF THE BIGGEST 
THINGS WE ARE SEEING ACROSS THE 
MARKET RIGHT NOW. 
ENGINEERS ARE THE HIGHEST PAID 
AMONG ALL ENGINEER SEGMENTS IN 
THE MARKET. 
AND THEY ARE ALSO REALLY HARD 
TO FIND. 
THOSE ARE RELATED. 
SO WHAT WE'RE SAYING IS, YOU 
DON'T NEED TO BUILD OUT A LARGE 
DEV OPS TEAM. 
YOU DON'T NEED TO HIRE SOME AWS 
CONSULTANT TO SET UP ALL OF 
THIS FOR YOU, AND THEN THEY 
LEAVE YOU AND THEN YOU'RE LIKE, 
WHAT AM I GOING TO DO WITH THIS 
GIANT THING? 
WE ARE AUTOMATING ALL THAT 
AWAY. 
SO YOU DON'T HAVE TO DEAL WITH 
ANY OF THAT. 
AND THAT IS WHERE THE BIGGEST 
ROI IS. 
>> ONE MORE ROUND OF APPLAUSE 
FOR RENDER. 
[ APPLAUSE ]  NOW LET'S BRING 
OUT THE FINAL STARTUP OF THE 
FIRST ROUND OF THE STARTED 
BATTLEFIELD. 
MUTINY. 
>> MUTINY HELPS B2B COMPANIES 
PERSONALIZE THEIR WEBSITE FOR 
EACH VISITOR. 
IN ORDER TO CONVERT THE 99% OF 
THEIR TRAFFIC THAT BOUNCES 
TODAY. 
FOR EXAMPLE, ONE OF OUR 
CUSTOMERS, AMPLITUDE, USES 
MUTINY TO TAILOR THEIR WEBSITE 
CUSTOMER CASE STUDIES AND LOGOS 
FOR EVERY SINGLE VISITOR BASED 
ON THEIR INDUSTRY. 
SOMEONE COMING FROM THE 
CONSUMER TECH INDUSTRY WILL SEE 
TWITTER AND IT'S THE CART, WELL 
AS A B2B COMPANY WILL SEE CISCO
. THE RESULTS OF THIS PERSONAL 
INNOVATION IS A 54% INCREASE IN 
LEADS BECAUSE PEOPLE WANT TO 
KNOW HOW THEIR PEERS ARE USING 
AMPLITUDE. 
WE FOUNDED MUTINY IN JUST A 
LITTLE OVER A YEAR AGO AND 
ALREADY THE FASTEST GROWING B2B 
UNICORN SUCH AS SEGMENT, ARE 
USING MUTINY TO TAILOR THEIR 
WEBSITES. 
WE BUILT MUTINY AFTER OUR OWN 
HORRIBLE EXPERIENCE TRYING TO 
DO PERSONALIZATION IN HOUSE. 
WE WERE BOTH EARLY EMPLOYEES, 
AND I LED MARKETING AT GUSTO, 
AND WHAT WE REALIZED AS WE GREW 
OUR CUSTOMER BASE FROM 500 TO 
50,000 CUSTOMERS WAS THAT, EVEN 
THOUGH OUR PRODUCT WAS A REALLY 
GREAT FIT FOR A LOT OF 
DIFFERENT BUSINESSES, THE SAME 
MARKETING MESSAGE DIDN'T 
NECESSARILY RESONATE FOR 
EVERYBODY. 
BUT WHAT WE TRY TO TAILOR OUR 
MESSAGE FOR EVERYONE, WE 
LEARNED HOW CHALLENGING THAT 
WAS. 
TO PERSONALIZE OUR WEBSITE FOR 
EACH USER, WE NEEDED TO KNOW 
WHO WAS COMING TO THE WEBSITE, 
PRIORITIZE BETWEEN ALL OF THE 
DIFFERENT GROUPS THAT WERE 
COMING TO THE SITE, CHANGE 
THEIR EXPERIENCE, AND MEASURE 
THE IMPACT SO WE CAN KEEP 
ITERATING. 
TO DO THAT WE NEEDED LOTS OF 
ENGINEERS, DATA SCIENTIST, 
DESIGNERS AND ANALYSTS. 
THE AVERAGE MARKETING TEAM DOES 
NOT HAVE ACCESS TO THESE 
TECHNICAL EXPERTISE. 
AND THAT IS EXACTLY WHY WE 
BUILT MUTINY, TO SOLVE ALL OF 
THESE PROBLEMS IN ONE PLACE 
WITH SOFT LAB. 
MUTINY IDENTIFIES THE VISITORS 
TO A WEBSITE VIA PREBUILT DATA 
INTEGRATION. 
IT ANALYZES THE WEBSITE TRAFFIC 
AND CONVERSION DATA TO 
RECOMMEND THE BEST AUDIENCES 
FOR PERSONALIZATION. 
IT HAS A VISUAL EDITOR THAT 
LETS ANY NON-TECHNICAL PERSON 
CHANGE THE EXPERIENCE OF THEIR 
WEBSITE, AND HAS BUILT-IN 
ANALYTICS TO MEASURE THE 
RESULTS SO THE COMPANY CAN KEEP 
ITERATING. 
NOW LET'S TAKE A LOOK AT HOW 
HALEY USES MUTINY TO OPTIMIZE 
CARTA. 
LET'S START WITH 
RECOMMENDATIONS. 
MUTINY ANALYZES CARTA.COM AND 
BASED ON THE VISITORS AND THEIR 
CONVERSION DATA MAKES A SERIES 
OF RECOMMENDATIONS TO KEEP 
HALEY FOCUSED. 
THE FIRST RECOMMENDATION IS TO 
PERSONALIZE FOR SEED STAGE 
COMPANIES BECAUSE THEY CONVERT 
AT 50 WERE PERCENT LOWER THAN 
OTHER SEGMENTS ON THE WEBSITE. 
DESPITE HAVING A REALLY HIGH 
CONVERSION RATE IN SALESFORCE. 
ANOTHER RECOMMENDATION HERE IS 
TO PROMOTE THEIR REFERRAL 
PROGRAM TO EXISTING CUSTOMERS. 
THIS IS A GREAT WAY TO GET MORE 
ORGANICALLY FROM AN AUDIENCE 
THAT TODAY IS COMPLETELY 
UNTAPPED ON THE WEBSITE. 
LET'S CLICK INTO THE FIRST 
RECOMMENDATION. HERE HALEY CAN 
SEE ADDITIONAL INFORMATION 
ABOUT EXACTLY WHY MUTINY HAS 
RECOMMENDED THE SEGMENT TO HER. 
SHE CAN SEE HOW TO PERSONALIZE 
DIFFERENT PARTS OF HER WEBSITE 
BASED ON THE TIPS WE HAVE 
PROVIDED. 
AND EVEN LOOK AT EXAMPLES OF 
HOW THIS SEGMENT HAS BEEN 
PERSONALIZED IN THE FIELD. 
LET'S CLICK TO ACTUALLY CHANGE 
THE EXPERIENCE FOR THIS GROUP. 
YOU CAN SEE IT IS ALREADY 
PRESELECTED THIS SEGMENT AS 
COMPANIES WITH 1 TO 10 
EMPLOYEES, WHICH HALEY CAN EDIT 
IF SHE WANTS TO. 
WE WILL GO AHEAD AND CLICK NEXT 
TO CHANGE THEIR EXPERIENCE ON 
THE SITE. 
SO HERE WE ARE LOADING THEIR 
SITE VIA THE VISUAL EDITOR THAT 
LETS THEM CHANGE ANY ELEMENT OF 
THE SITE, WHETHER IT IS CTA OR 
IMAGING. 
KNOWING THAT THIS PARTICULAR 
GROUP IS NEW TO EQUITY, WE'RE 
GOING TO HIGHLIGHT THE CARTA 
EASE-OF-USE AND CHANGE THE CALL 
TO ACTION FROM DEMO TO 
SOMETHING A LITTLE BIT MORE 
HANDS-ON SUCH AS GET STARTED. 
AND HIT LAUNCH. 
AND JUST LIKE THAT, THAT 
SEGMENT WILL NOW SEE THE 
PERSONALIZED CONTENT ON THE 
SITE. 
LET'S TAKE A LOOK AT 
EXPERIENCES THAT HALEY HAD 
LAUNCHED PREVIOUSLY. 
WE WILL GO INTO ONE 
SPECIFICALLY FOR VENTURE 
CAPITALISTS THAT HIGHLIGHTS THE 
NEW PRODUCT FOR THIS AUDIENCE. 
THE NUMBERS YOU SEE HERE ARE 
FROM OUR ANALYTICS PRODUCT. 
WE DON'T SHOW PERSONALIZED 
CONTENT TO EVERYBODY THAT IS 
PART OF THE SEGMENT. 
AND WE MEASURE THE DIFFERENCE 
IN LIFT BETWEEN PERSONALIZED 
ENGINEERING. 
AS YOU CAN SEE HERE, THIS 
PARTICULAR PERSONALIZATION HAS 
INCREASED THEIR CONVERSION BY 
129%. 
THE RESULTS FROM THE IN ARE 
INCREDIBLE. 
200% INCREASE IN OUTBOUND 
LEADS, 40% SITEWIDE INCREASE IN 
LEADS FOR AMPLITUDE, AS A POINT 
OF COMPARISON, FOR MOST B2B 
COMPANIES AND COMMON CHANNEL IS 
AD WORDS. 
THAT CHANNEL TYPICALLY 
GENERATES LESS THAN 10% OF 
THEIR YOU ALREADY 
HAVE. 
THANK YOU. 
S HAVE 
>> JUDGES. 
WHO HAS QUESTIONS? 
>> SO THANK YOU FOR THAT. 
IT WAS WONDERFUL. 
TELL ME WHY THIS ISN'T A ONE 
TIME CONSULTING EDGE ENGAGEMENT 
AS OPPOSED TO SASSYFIED THAT 
WILL LIVE WITH  ME FOR YEARS? 
>> IF YOU LOOK AT MARKETING FOR 
SOCIALIZATION TODAY, YOU RUN 
INTO TWO TYPES OF 
PERSONNIZATION FLARES. 
ONE IS A PLATFORM WHICH DOESN'T 
GENERATE MUCH RESULTS AND THE 
OTHER IS PRODUCTS THAT ENABLE 
THE PLUMBING. 
PERSONNIZATION BUT REQUIRE A IT 
TON OF EXPERTISE WHICH SPEAKS 
TO THE POINT YOU WERE BRINGING 
UP. 
MUTINY IS FOCUSED ON THE B2B 
MARKET TO BUILD A PRODUCT 
THAT'S REALLY EASY TO USE AND 
WE'RE ABLE TO RECOMMEND 
PERSONNIZATION PLAYBOOKS AND 
BEST PRACTICES THAT IS HIGHLY 
RELEVANT TO EVERYBODY IN THAT 
INDUSTRY. 
IT'S BOTH EASY TO USE AND JUST 
A SASS PRODUCT. 
>> THANK YOU. 
IT SEEMS LIKE AN INTERESTING 
WEDGE IN THE MARKET TO HAVE TO 
CAPTURE MORE ROI, CAPTURE MORE 
LEADS. 
OVER TIME YOU HAVE TO EXPAND. 
HOW DO YOU SEE YOUR PLATFORM 
OFFERING MORE PERSONALIZATION? 
>> OUR VISION IS TO START WITH 
THE WEB AND THAN EXPAND FOR THE 
ENTIRE BUYING EXPERIENCE FOR 
B2B COMPANIES OF WEB IS A 
REALLY GREAT PLACE TO START 
BECAUSE REGARDLESS OF WHERE 
THAT CUSTOMER COMES FROM, 
THEY'LL EVENTUALLY END UP ON 
THE WEBSITE.  
IT'S ALSO A GREAT PLACE FROM A 
DATA COLLECTION STANDPOINT, BUT 
ONCE WE'VE BUILT THIS VISITOR 
PROFILE AND THE AIN'T TO MAKE 
RECOMMENDATIONS, WE CAN PORT 
THE MAJORITY OF THAT TO 
ADDITIONAL CHANNELS AND IT JUST 
MAKES THE PRODUCT STRONGER. 
>> HOW DOES THE MARKET 
REORGANIZATION -- HOW DOES YOUR 
PRODUCT PLAY WITH OTHER 
MARKETING AUTOMATION AND 
WEBSITE AUTHORIZATION TOOLS 
THAT MANY OF YOUR CUSTOMERS OR 
PROSPECTIVE CUSTOMERS MAY 
ALREADY BE USING ALONGSIDE THAT 
CUSTOMER LIFE CYCLE OR 
PROSPECTIVE CUSTOMER LIFE 
CYCLE. 
>> HOW DO YOU PLAY WITH THAT OR 
HOW ARE YOU THINKING ABOUT THAT 
ISSUE? 
>> ABSOLUTELY.  
WE INTEGRATE WITH SYSTEMS THAT 
CAN GENERATE VALUABLE DATA AND 
SO, YOU KNOW, SYSTEMS THAT 
ALREADY ARE COLLECTING A LOT OF 
USER INFORMATION,ING  WITH 
ALREADY INTEGRATE WITH A NUMBER 
OF THEM SUCH AS SALES FORCE AND 
SEGMENT AND AS WE EXPAND, WE'LL 
INTEGRATE WITH MORE OF THEM. 
A.B. 
TESTING IS A LITTLE BIT 
DIFFERENT IN THE SENSE THAT 
THEY SOLVE A SLIGHTLY DIFFERENT 
PROBLEM AND YOU CAN THINK OF IT 
AS AN OLDER GENERAL VERSION OF 
THIS PROBLEM WHERE THEY'RE JUST 
SHOWING AN A AND B AND TRYING 
TO FIND THE NEW BASELINE 
VERSION, WHEREAS WE ARE 
DYNAMICALLY IDENTIFYING THE 
AUDIENCE AND SHOWING EVERYBODY 
EXACTLY WHATEVER IS THE BEST 
EXPERIENCE FOR THEM.
>> HOW MUCH DATA TO YOU NEED IN 
ORDER TO THEN COME UP WITH THE 
APPROPRIATE SEGMENTS? 
THAT'S WHY I'M SORT OF GOING 
BACK TO THE QUESTION ABOUT 
FEELS LIKE THERE'S A CONSULTING 
PROJECT THAT NEEDS IT UP FRONT 
TO IDENTIFY THE SEGMENTS OR YOU 
NEED TO BE MONITORING TRAFFIC 
FOR A PERIOD OF TIME TO 
UNDERSTAND WHO IS COMING AND 
WHAT BUCKETS THEY FALL INTO. 
JUST HELP US UNDERSTAND THAT A 
LITTLE BIT. 
>> YEAH, YEAH TOTALLY. 
OUR IDEAL CUSTOMERS USUALLY 
HAVE ABOVE 20,000 UNIQUE 
VISITORS A MONTH. 
SO THIS IS A SIZABLE GROUP TO 
RUN A STATISTICALLY SIGNIFICANT 
TEST AND IT USUALLY TAKES US 
ABOUT ONE TO TWO WEEKS FROM THE 
TIME TO IMPLEMENT OUR SCRIPT ON 
THEIR WEBSITE. 
SO AT THAT POINT IN TIME THEY 
CAN START DEPLOYING 
PERSONNIZATION  PERSONALIZATION 
AND ONCE WE START CAPTURING 
THAT DATA WE HAVE A 
REPRESENTATIVE GROUP. 
>> THEN YOU'RE TAGGING IT TO 
SORT OF IDENTIFY LIKE SIZE, 
INDUSTRY, ET CETERA? 
>> EXACTLY. 
>> OKAY. 
>> SO WE'LL INTEGRATE WITH 
THIRD-PARTY DATA SOURCES, THE 
THINGS LIKE REVERSE IP 
ENRICHMENT AND ACQUISITION 
CAMPAIGNS THAT BROUGHT THEM TO 
THE WEBSITE AND ALSO THE 
COMPANY'S FIRST-PARTY DATA, SO 
INFORMATION ABOUT WHERE THAT 
VISITOR IS IN THEIR PIPELINE, 
WE CAN GET FROM THE CR REM AND 
THE INFORMATION FROM THE SIGN-
UP FORM. 
ALL THAT GETS CREATED INTO A 
SINGLE PROFILE. 
>> FINAL QUESTION? 
>> WHAT'S YOUR PRICING? 
HOW ARE YOU PRICING IT? 
>> WE'RE A SAAS SUBSCRIPTION 
SERVICE.  
WE CHARGE A PRICE PER MONTH. 
RIGHT NOW WE START AT $1,500 
PER MONTH AND WE ARE LOOKING TO 
INTRODUCE A STARTUP PACKAGE 
THIS QUARTER AS WELL. 
>> AWESOME. 
GIVE IT UP FOR MUTINY! 
>> THANK YOU. 
>> THAT ENDS THE FIRST SESSION 
OF THE STARTUP BATTLEFIELD. 
THE JUDGES WILL FOLLOW ME 
BACKSTAGE AND DELIBERATE. 
THEY'LL HELP US CHOOSE SOME 
FINALISTS. 
BEFORE THEY DO THAT, THOUGH, 
LET'S HAVE ONE LAST ROUND OF A 
LAWS FOR OUR AWESOME JUDGES! 
>> MORE APIs ARE CREATED ACROSS 
THE ORGANIZATION. 
WITH THIS INCREASE THEY CAN 
BECOME MORE CHALLENGING FOR 
DEVELOPERS TO FIND THESE 
INTERNAL APIs AND REUSE THEM 
WHEN THEY'RE DEVELOPING NEW 
SOFTWARE. 
THAT'S WHERE RAPID API FOR 
TEAMS CAN HELP. 
RAPID API FOR TEAMS ENABLES 
DEVELOPMENT TEAMS TO TURN THEIR 
APIs INTO A PRIVATE WORKSPACE. 
DEVELOPERS CAN FIND ANY 
INTERNAL API, VIEW ITS 
DOCUMENTATION, TEST IT AND WORK 
COLLABORATIVELY. 
TEAM MEMBERS CAN SUBSCRIBE TO 
ANY PUBLIC API AVAILABLE ON THE 
RAPID API MARKETPLACE AND THE 
ENTIRE TEAM CAN SEE AND USE 
THAT 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. 
GET STARTED TODAY ON 
RAPIDAPI.COM/TEAMS. 
>> OUR TEAMS LOVE BUILDING 
COMPANIES THAT CREATE VALUE AND 
MAKE A DIFFERENCE AS WELL AS 
OUR HAVE. 
S  INVESTMENTS IN COMPANIES 
BUILDING MEANINGFUL ONLINE 
GLOBAL CLASSIFIEDS, DELIVERS 
AND PAYMENT CONTACTS. 
>> THEY ARE GLOBAL AND THEY 
UNDERSTAND CULTURAL BUSINESS.  
THEY HAVE A VERY HELPFUL AND 
SPECIFIC ADVICE THEY CAN GIVE 
TO US. 
>> THEY THINK LIKE 
ENTREPRENEURS. 
THEY'RE A FANTASTIC PARTNER. 
>> OUR BIG VISION IS IT TO MAKE 
LIFE BETTER FOR 1 BILLION 
PEOPLE AND I BELIEVE THIS IS 
THE PERFECT PARTNER TO HELP US 
ACHIEVE OUR DREAMS. 
>> WHY DID YOU COME TO THIS 
WORKSHOP? 
TO LEARN. 
TO START TO UNLEARN EXAMPLES 
THAT HAVE BEEN CREATED VERY 
INCORRECTLY IN THE PAST. 
>> I WANT TO BE WHERE WE ASK 
QUESTIONS LIKE WHY AND THE BIG 
QUESTION I ASK IS WHAT IF? 
YOU KNOW, IT'S 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 IT'S TIME FOR ME TO 
MOVE ON AND LOOK FOR GREATER 
THINGS AND HAVE MORE IMPACT. 
>> AT LOCKHEED MARTIN WE'RE 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. 
>>> LADIES AND GENTLEMEN, 
PLEASE WELCOME BACK TECH CRUNCH 
MANAGING EDITOR AND DISRUPT 
EMCEE JORDAN CROOK. 
>> MY OVERLY ENTHUSIASTIC 
CROWD, IT'S LOVELY TO SEE YOU 
AGAIN. 
YEAH. 
JUST NOTHING, JUST CHIRPS, 
OKAY. 
I JUST WANTED TO REMIND YOU 
GUYS THAT THE EXTRA CRUNCH 
STAGE IS VERY LIVELY RIGHT NOW 
AND ACTUALLY AT 1:55 WE HAVE A 
PANEL ON HOW TO HIRE A BREAK 
NECK SPEED. 
HIRING FOUNDERS START OFF AND 
BUILD THEIR PRODUCTS AND 
THEY'RE ALL INTO THE PRODUCT 
AND SUDDENLY YOU HAVE TO GO TO 
HIRING LIKE A BUNCH OF PEOPLE 
AND IT'S A COMPLETELY DIFFERENT 
SKILL SET. 
IF YOU WANT TO HEAR MORE ABOUT 
THAT, PLEASE GO CHECK THAT OUT 
ON THE EXTRA CRUNCH STAGE RIGHT 
NOW. 
ON THE MAIN STAGE I'M ABOUT TO 
BRING OUT MY BOSS AND LIKE MY 
BOSS' BOSS' BOSS LIKE ALL THE 
WAY UP. 
SO I'M NOT GOING TO MAKE ANY 
MORE JOKES. 
PLEASE WELCOME TO THE STAGE THE 
CEO OF VERIZON WIRELESS AND 
YOUR MODERATOR, WARM WELCOME, 
PLEASE. 
>> THANK YOU. 
WELCOME. 
>> THANK YOU. 
>> THANKS FOR COMING OUT AMIDST 
ALL ADVERSITY. 
>> YEAH. 
SOME ADVERSITY ALWAYS GOOD. 
MAKES US STRONGER, YEAH.
WHY DOES VERIZON OWN TECH 
CRUNCH? 
>> VERIZON PRIDES OURSELVES TO 
HAVE THE BEST NETWORK AND THE 
BONUS IS ALL THE CONDUIT WE'RE 
DOING AND ESPECIALLY MOBILE AND 
I THINK THAT'S WHERE IT IF IT'S 
IN, THE WHOLE VERIZON MEDIA 
GROUP. 
THAT'S OVER THE TOP FOR US AND 
WHEN I THINK 5G WHICH I HOPE 
WE'LL COME TO, IT'S A TOTALLY 
NEW WAY TO ACTUALLY COMMUNICATE 
WITH CON CONSUMERS WHEN IT 
COMES TO CONTENT. 
I WOULD SAY WE ARE THE ONLY 
CARRIER IN THE WORLD IF YOU 
CALL US CARRIER THAT HAS AI IN-
HOUSE AND THE NETWORK IS GOING 
VIRTUAL. 
WE'RE VISUALIZING THE NETWORK. 
WE NEED ALL THOSE TYPE OF 
FORCES AND GREAT CONFIDENCES. 
SO IT MAKES SENSE FOR MANY 
REASONS TO HAVE THAT INSIDE IN 
ORDER TO BE EVEN STRONGER FOR 
OUR CONSUMERS. 
>> SO WHY IS THE MEDIA GROUP 
SUCH A GOOD TEST BED FOR 
SOMETHING LIKE 5G? 
>> 5G, IF I CAN JUST PULL BACK. 
WHEN WE TALK ABOUT 5G, WE THINK 
IT'S A FORWARD STEP FROM 4G. 
IT'S NOT. 
IT WAS BASED ON TWO PARAMETERS. 
YOU TOOK YOUR PHONE FOR DOING 
SMS AND VOICE AND THEN YOU CAN 
BROWSE ANY TYPE OF ONLINE IN 
4G. 
WHEN THE START OF THE SIGN ON 
5G, THE THINKING WAS HOW DO WE 
TRANSFORM ENTERPRISES AND 
SOCIETY WIRELESSLY? 
OF COURSE, GOING TO BE A LOT OF 
BENEFITS FOR CONSUMERS AND 5G 
HAS EIGHT CURRENCIES, NOT TWO. 
SO TWO PRESENT SPEEDS ARE 
EXPONENTIALLY MUCH FASTER. 
WE SEE ALREADY RIGHT NOW ON A 
SMARTPHONE 2, 3 GIG ON A 
SMARTPHONE, COUPLE YEARS FROM 
NOW IT'S GOING TO BE 10 BIG ON 
A PHONE EASILY. 
THE THROUGH-PUT IS ENORMOUS. 
THE LATENCY WHICH HASN'T BEEN 
THAT IMPORTANT ON 4G, WE'RE 
GOING TO DESIGN DOWN TO 10 
MILLISECONDS AND TODAY ON THE 
4G NETWORK, I WOULD SAY IT'S 
80, 90 MILLISECONDS? 
>> 10 MILLISECONDS IS FAST 
TOUCH. 
>> YOU CAN DO THINGS YOU 
HAVEN'T BEEN ABLE TO DO BEFORE 
AND BATTERY LIFETIME ONLY A 
10th OF WHAT WE USED TODAY AND 
IF I SHOULD DO A SLICE OF OUR 
4G NETWORK TODAY, IT WOULD TAKE 
US A COUPLE OF WEEKS IF I DO 
THAT FOR A CUSTOMER, SAY HEY, I 
WANT MY 4G NETWORK. 
>> RIGHT. 
>> WE SHOULD BE DOWN TO 90 
MINUTES TO DO SLICES OF THE 
NETWORK. 
THE OTHER THING IS SPEED AND 
MOBILITY SPEED MEANING THAT WE 
CAN CAPTURE A SIGNAL UP TO 500 
KILOMETERS PER HOUR IN 5G AND 
YOU ASK ME WHY DO YOU NEED 
THAT? 
YOU HAVE DRONES. 
YOU HAVE HIGH SPEED TRAINS 
WHICH TODAY WE CANNOT SORT OF 
CAPTURE WHEN WE HAVE 4G SIGNAL. 
SO ALL THESE EIGHT CURRENCIES 
ARE ACTUALLY A TOTALLY NEW TEST 
BED AND PLATFORM FOR DOING NEW 
TYPE OF BUSINESSES. 
IT'S DRAMATICALLY DIFFERENT 
FROM ANYTHING ELSE YOU HAVE 
SEEN FROM 4G. 
STILL IT'S GOING TO BE TAKE LOT 
OF GREAT THINGS FOR CONSUMERS 
AND ALL THESE CURRENCIES, BUT 
IT'S ALSO GOING TO BE MUCH 
WIDER. 
I SEE THIS AS A QUANTUM LEAP 
COMPARED TO 4G. 
>> WHEN YOU'RE TALKING ABOUT 
THE 5G IMPLEMENTATION OF 
VERIZON SPECIFICALLY, WHAT'S 
THE DIFFERENT OF ROLLOUT AND 
TECHNOLOGY AND IMPLEMENTATION 
ON THE GROUND VERSUS A 
COMPETITOR LIKE AT&T? 
>> I THINK THAT FIRST OF ALL, 
YOU ONLY BUILD EIGHT CURRENCIES 
IF YOUR CUSTOMERS ARE GOING TO 
USE THEM. 
SO LET'S ASSUME I'M A EUROPEAN 
CARRIER ONLY HAVING CONSUMERS. 
I WOULDN'T BUILD IT AS I BUILD 
RIGHT NOW. 
WE BUILD FIBER IN OVER 60 
CITIES TODAY. 
WE'RE GOING TO HAVE FIBER READY 
BASED STATION BECAUSE WE'LL 
HAVE SO MUCH DATA.  
WE'RE BASICALLY GOING TO BUILD 
FOR ALL THESE EIGHT CURRENCIES 
WITH THE THROUGH-PUT SPEED, LOW 
LATENCY AND ALL THAT. 
THAT'S DIFFERENT FROM ANYBODY 
ELSE. 
I DON'T KNOW WHAT AT&T IS DOING 
TO BE HONEST OR AT LEAST I 
CANNOT TALK ABOUT IT. 
SO I THINK THAT'S A BIG 
DIFFERENCE FOR US HOW WE'RE 
GOING TO BUILD THE NETWORK AND 
YOU HAVE TO UNDERSTAND WE ARE 
FOUR BUSINESS CASES ON THE SAME 
INFRASTRUCTURE WHICH IS 
IMPORTANT FOR THIS AUDIENCE. 
NUMBER ONE, THE COST PER BIT IS 
GOING DOWN WITH EVERY 
TECHNOLOGY. 
>> RIGHT. 
>> THEN THE MOBILITY CASE, 
YOU'RE GOING AROUND WITH A 
SMARTPHONE WITH 5G. 
WE LAUNCHED 13 CITIES, 13 NFL 
STADIUMS AND THE NBA SEASON 
HASN'T EVEN STARTED. 
WE CONTINUE TO BROADEN THAT. 
THEN WE'RE 5G HOME. 
WE'RE ACTUALLY GOING TO INSTEAD 
OF HAVING A 5G HOME WHERE 5G 
FROM THE EDGE TO THE HOME AND 
YOU CAN HAVE THE SAME 
EXPERIENCE. 
WE HAVE THAT INFOUR CITIES 
TODAY. 
WE'LL HAVE MORE LATER THIS 
YEAR. 
ULTIMATELY THE BUSINESS CASE IS 
A 5G MOBILE EDGE COMPUTE. 
WHEN YOU BRING ALL THESE 
CURRENCIES, ALL THE 
CAPABILITIES OF 5G TO THE EDGE 
OF THE NETWORK SO YOU CAN HAVE 
THIS THROUGH-PUT AND THE SPEEDS 
OF THE 10 GIG, I'M NOT SURE,  
COULD BE EVEN HIGHER AND YOU 
START DOING APPLICATIONS ON THE 
EDGE FOR CONSUMERS, FOR 
ENTERPRISES. 
>> ON THE DEVICE THAT CAN 
TRANSMIT FASTER. 
>> ABSOLUTELY. 
IF YOU WANT TO LOAD SOFTWARES 
ON TOP ON THE  MOBILE EDGE 
COMPUTE SO YOU CAN DO A LOT OF 
PROCESSING AT THE EDGE, THAT'S 
A TYPICAL USE CASE. 
THINK OF THE EXAMPLE WITH 
ROBOTICS IN IT, INSTEAD OF 
HAVING WIRES TO EVERYTHING YOU 
BASICALLY DO A 5G FACTORY AND 
ALL THE ROBOTS CAN BE 
RECONFIGURED IN SECONDS AND YOU 
HAVE MILLISECONDS OF LATENCY TO 
THEM. 
SO SUDDENLY YOU NEED TO RETHINK 
THE WHOLE WAY YOU HAVE DONE 
YOUR INFRASTRUCTURE FROM THE 
BEGINNING. 
>> SO WHEN VERIZON IS DOING 
ROLLOUT OF 5G AS IT'S IN THE 
PROCESS OF DOING RIGHT NOW, ONE 
OF THE THINGS I THINK IS 
IMPORTANT TO SEE WHEN YOU LOOK 
AT THE ROLLOUT OF 3G AND 4G IS 
HOW IT OFTEN ROLLED OUT IN 
AREAS THAT WERE, FRANKLY, 
RICHER AND WIDER THAN A LOT OF 
OTHER AREAS FIRST BECAUSE THEY 
FELT WE HAVE THE CUSTOMER BASE. 
WE CAN SELL TO THESE CUSTOMERS. 
WE KNOW THEY'LL BE AVAILABLE. 
IS VERIZON DOING WORK TO MAKE 
SURE BASICALLY THAT 5G 
TECHNOLOGY IS AVAILABLE ON A 
UNILATERAL BASIS VERSUS A 
SOCIOECONOMIC BASIS THAT TENDS 
TO FAVOR A CERTAIN GROUP OF 
PEOPLE? 
>> ABSOLUTELY. 
TO TWO OF THEM ARE VERY RURAL 
WE'VE LAUNCHED SO FAR. 
ON SATURDAY EVENING I ANNOUNCED 
TODAY WITH PHARRELL WILLIAMS 
THAT WE'RE GOING TO PUT 5G IN 
100 SCHOOLS THE NEXT THREE 
YEARS. 
SO WE'RE REALLY TRYING TO BRING 
OUT 5G IN THE MOST UNDERSERVED 
MARKETS AS WELL, ESPECIALLY 
WHEN IT COMES TO SORT OF 
CLASSROOMS, SCHOOLS, THINGS 
LIKE. 
THAT REMEMBER ALSO WE START TO 
ALSO DEPLOY IN OUR 5G SPECTRUM 
WHICH HAS TREMENDOUS SPEED BUT 
NOT AS WIDE COVERAGE. 
WE'LL USE OTHER SPECTRUMS FOR. 
THAT CLEARLY WE SEE ANY SORT OF 
PLACE WHERE THERE'S A CLUSTER 
OF A LOT OF PEOPLE, ET CETERA, 
THAT'S THE SWEET SPOT FOR 
MILLIMETER WAVE RIGHT NOW, BUT 
ULTIMATELY ANY SPECTRUM WE 
WOULD HAVE WOULD BE 5G SPECTRUM 
AS ANY SPECTRUM TODAY IS A 4G 
SPECTRUM. 
IT'S TO MATURE THE INDUSTRY, 
THE DEVICES, WHATEVER YOU'RE 
CONNECTING TO. 
>> OKAY. 
I ACTUALLY HAVE AN INTERESTING 
QUESTION. 
SO THE INDUSTRY AT LARGE IS 
KIND OF DOING -- WELL, THE TECH 
INDUSTRY, ESPECIALLY BIG TECH, 
HAS A SORT OF NAVAL GAZING 
THING GOING ON AS FAR AS 
REGULATION GOES. 
AS THE CEO OF A TELECOM 
COMPANY, HOW DO YOU FEEL ABOUT 
BIG TECH GETTING MORE SCRUTINY 
FROM REGULATORY INVESTIGATIONS? 
>> I THINK FIRST OF ALL, 
TECHNOLOGY IS EVOLVING 
EXTREMELY FAST ALL THE TIME AND 
TO RECOLLECT  REGULATE IT TOO 
MUCH, YOU WOULD ALSO CAP 
TECHNOLOGY ENORMOUSLY. 
YOU NEED TO FIND A BALANCE OF 
LIGHT TOUCH AND CORPORATE 
RESPONSIBILITY BECAUSE THE 
BONUS, ONE OF THE BEST 
TECHNOLOGIES IN THE WORLD IS 
THE MOBILITY BROADBAND AND 
CLOUD. 
ANY SUSTAINABLE SCALABLE 
SOLUTION IN THE WORLD RIGHT NOW 
RESTS THE BIGGEST CHALLENGE ON 
EARTH WILL HAVE EDUCATION, 
HEALTHCARE, INEQUALITIES. 
THEN YOU HAVE THESE THREE 
TECHNOLOGIES AND THEY EVOLVED 
FANTASTICALLY AS A LOT OF 
DEVELOPERS, PLATFORM DELIVER 
COMPANIES. 
FOR ME IT HAS TO BE LIKE TOUCH 
BECAUSE TECHNOLOGY IS MOVING SO 
FAST. 
TODAY WHEN PEOPLE ARE WORKING 
WHAT'S GOING TO HAPPEN IN FIVE 
YEARS? 
THAT BALANCE, BUT ULTIMATELY IT 
WILL COME DOWN TO GUYS LIKE ME 
RUNNING BIG TECH COMPANIES THAT 
WE ARE RESPONSIBLE ALSO HOW 
THIS IMPACTS SOCIETY AND HAVING 
A WIDER RESPONSIBILITY THAN WE 
EVER HAD BEFORE. 
SO I THINK WE'LL BE DOING THIS 
AS WELL. 
WE ARE 120 MILLION WIRELESS 
CONSUMERS IN THIS COUNTRY. 
I THINK THAT BALANCE IS HOW IT 
HAS TO BE STRUCK, BUT I'M NOT A 
GENIUS ON DOING REGULATION, ET 
CETERA, BUT I THINK THAT'S -- 
BECAUSE YOU DON'T WANT TO 
HAMPER THE TECHNOLOGY EVOLUTION 
THAT IS SO IMPORTANT TO THIS 
PLANET. 
I JUST CAME OUT FROM THE U.N. 
TALKING ABOUT ALL THE 17 
SUSTAINABLE DEVELOPMENT GOALS, 
HOW ARE WE GOING TO ACHIEVE 
THEM? 
THE BONUS, IF TECHNOLOGY IS NOT 
GOING TO HELP THEM, I'M NOT 
SURE HOW WE'RE GOING TO DO IT. 
>> RIGHT. 
>> WOULD YOU VOTE FOR ELIZABETH 
WARREN EVEN IF SHE'S VERY, VERY 
REGULATORY HEAVY? 
>> SO REMEMBER I'M SWEDISH. 
>> SURE. 
>> SO I'M NOT VOTING IN THIS 
COUNTRY. 
>> THAT'S A GREAT OUT. 
I DID SAY WOULD YOU, NOT ARE 
YOU, BUT I GET IT. 
>> YOU HEARD MY ANSWER. 
>> SO DO YOU THINK THAT THERE 
IS A VALIDITY TO A COMPANY LIKE 
HUAWEI BEING UNDER SO MUCH 
SCRUTINY FOR THE COMMUNICATIONS 
EQUIPMENT IT'S PROVIDING THE 
COUNTRY? 
DO YOU THINK IT'S RIGHT TO BAN 
HUAWEI FROM SELLING 
COMMUNICATIONS EQUIPMENT IN THE 
U.S.? 
>> I DON'T HAVE ANY INSIGHT FOR 
THAT. 
I CAN'T EVEN ANSWER ON. 
I THINK IT'S IMPORTANT IN 
GENERAL I THINK THAT 5G, 6G 
NEED TO HAVE A FLOOR OR SORT OF 
SUPPLY CHAIN WITH MANY 
SUPPLIERS. 
I THINK THAT'S IMPORTANT, BUT 
ONE THING I THINK THAT PEOPLE 
UNDERESTIMATE WHEN IT COMES TO 
THE TELECOM INDUSTRY, THERE'S A 
REASON WHY ALL YOUR PHONES THAT 
YOU HAVE IN THIS ROOM ACTUALLY 
WORKS IN ANY COUNTRY IN THE 
WORLD, BECAUSE YOU SHARE 
PATENTS IN THE INDUSTRY. 
THE SMARTEST PATENTS. 
SO WHEN THE EIGHTH CURRENCIES 
WAS DECIDED AS THIS IS THE 
STANDARD FOR 5G, ALL THE TECH 
COMPANIES IN THE TELECOM SECTOR 
THROW IN THIS IS THE BEST 
PATTERN TO SOLVE IT AND FINALLY 
SAY THESE ARE THE PATTERNS 
WE'RE GOING TO USE TO BUILD IT. 
NOW EVERYONE IT BUILD. 
IF YOU'RE IN THE INDUSTRY, THE 
LAST THING YOU DO WHEN YOU HAVE 
A PATENT IS SHARE WITH 
COMPETITORS. 
THAT'S WHY THIS INDUSTRY IS TO 
CRITICALLY IMPORTANT AND THAT'S 
WHY SO MANY PEOPLE ON THIS 
EARTH ACTUALLY HAVE A PHONE IN 
THEIR HANDS. 
>> I THINK THAT YOU WITH THE 
THINGS THE PEOPLE IN THIS 
AUDIENCE ESPECIALLY ARE MOST 
INTERESTED IN, I THINK YOU TALK 
A LOT ABOUT 5G FOR THE 
ENTERPRISE AND THE 
OPPORTUNITIES DOWN THE LINE, 
BUT WHAT ARE SOME OF THE NEAR 
TERM PRACTICAL WAYS THAT YOU 
THINK 5G WILL ACTUALLY BENEFIT 
A VERY YOUNG COMPANY, LET'S SAY 
A COMPANY UNDER 100 PEOPLE JUST 
GETTING OFF THE GROUND? 
HOW ARE THEY BEST TO PREPARE 
THEMSELVES FOR THIS AND WOULD 
UTILIZE IT? 
>> I REMEMBER I GOT A LOT OF 
QUESTIONS ON STAGE WHEN 4G WAS 
COMING, YOU KNOW, OH, WHAT APPS 
GOING TO BE ON 4G AND I MISSED 
IT TOTALLY HOW MUCH WOULD 
HAPPEN IN THIS REGION OF THE 
WORLD, HOW MUCH INNOVATION THAT 
WAS ON TOP OF 4G. 
I SEE THAT THE 5G PLATFORM IS 
EVEN MORE OPEN AND HAVING EVEN 
MORE OPPORTUNITY. 
SO I THINK THAT WITH COMPANIES 
LIKE WE ARE DOING, WE HAVE OUR 
TEST BEDS. 
WE HAVE FOUR OR FIVE INNOVATION 
CENTERS ACROSS THE COUNTRY 
WHERE YOU CAN ACTUALLY 
ELABORATE WITH 5G ALREADY. 
WE HAVE 5G CHALLENGE. 
WE HAVE HUNDREDS OF COMPANIES 
COMING UP WITH IDEAS. 
THE 5G MOBILE EDGE COMPUTE WE 
HAVE SAID PUBLICLY WE'RE GOING 
TO LAUNCH THE FIRST 5G MOBILE 
EDGE COMPUTE CENTERS IN Q4 THIS 
YEAR. 
THAT MEANS THAT THEN ACTUAL SEE 
EVEN MORE OPPORTUNITIES START 
TO INNOVATE ON TOP OF THE 5G 
MOBILE EDGE COMPUTER. 
I HAVE TO COME BACK A LITTLE 
BIT ON EXACTLY, BUT I THINK 
THAT YOU NEED TO START THINKING 
ABOUT HOW WE CAN INNOVATE FOR 
CONSUMERS, ENTERPRISE SOCIETY 
ON THAT PLATFORM WITH THOSE 
ENORMOUSLY CAPABLE CURRENCIES 
THAT WE'LL HAVE IN 5G. 
>> TO BRING IT BACK TO THE 
MEDIA THING, I MEAN THE 
APPROACH OF VERIZON IN THE 
MEDIA BUSINESS DEFINITELY SEEMS 
TO BE MORE LIGHT TOUCH THAN 
SOMEBODY LIKE AT&T WHO IS GOING 
VERY HEAVY. 
THEY'VE OBVIOUSLY BOUGHT A 
BROADCASTER AND THAT SORT OF 
THING. 
WHY DO YOU THINK YOUR APPROACH 
IS DIFFERENT? 
>> I'M NOT SURE MY APPROACH IS 
DIFFERENT. 
IT'S STRATEGY. 
YOU BUILD THE STRATEGY ON WHAT 
YOU THINK ARE THE BEST DNA OF 
THE COMPANY. 
OTHERS MIGHT HAVE OTHER DNA AND 
OTHER ASSETS AND THEY BUILD ON 
THAT. 
I THINK THE STRENGTH OF VERIZON 
IS OUR NETWORK. 
OUR 3G AND 4G NETWORK HAS 
ALWAYS BEEN THE BEST IN THE 
MARKET. 
WE'LL CONTINUE TO HAVE THE BEST 
COVERAGE AND THE BEST THROUGH-
PUT AND WE THINK OUR CUSTOMERS, 
THEY'RE ENTERPRISE, CONSUMERS, 
SMALL TO MEDIUM BASED, 
GOVERNMENT OR WHATEVER, THEY 
ARE TOGETHER WITH VERIZON 
BECAUSE WE HAVE THE BEST 
NETWORK. 
THAT'S WHY WE HAVE A NETWORK 
SERVICE MODEL. 
WE BASICALLY BUILD ONE NETWORK 
NOW. 
WE HAVE RESIGNED A WHOLE 
NETWORK TOPOGRAPHY IN ORDER TO 
SEE THAT AT THE EDGE WE DECIDE 
WHAT TYPE OF ACCESS WE'RE 
GIVING THAT CUSTOMER. 
SOME GET 5G. 
SOME GET 4G. 
SOME HAS THE FIBER. 
SOME MIGHT HAVE EVEN THE 
COPPER. 
WE SEE THAT WE'RE GOING TO GET 
OPTIONALITY. 
THAT GOES FOR OUR CUSTOMER 
BROADBAND AS WELL. 
WE GIVE THEM OPTIONALTY. 
YOU CAN CHOOSE YOUTUBE TV, 
FIOS, WHATEVER. 
WE WANT TO GIVE OPTIONALITY FOR 
OUR CUSTOMER ON A VERY STRONG 
BASE ON THE NETWORK. 
>> IN FIVE YEARS WHAT DO YOU 
THINK THE BUSINESS MIX OF 
VERIZON LOOKS LIKE? 
IS 5G THE PILLAR THAT YOU'RE 
RESTING ON IN FIVE YEARS? 
>> EXTERNALLY ESTIMATES SAYS 
THAT BY 2024 EXTERNAL VERIZON 
SAYS ROUGHLY 50% OF THE 
POPULATION WILL HAVE A 5G 
PHONE. 
THE SAME THING WILL SHOW 
BETWEEN 3D AND 4G. 
YOU NEED TO KEEP 4G FOR A LONG, 
LONG TIME AND I THINK THAT 
WE'RE GOING TO SEE 4G CONTINUE 
TO LIVE FOR TAKE LONG, LONG 
TIME AND WE ARE CONTINUING TO 
INVEST HEAVILY IN THE NETWORK 
OF 4G AS WELL. 
SO I THINK THAT WE'RE GOING TO 
SEE AN INCREMENTAL REVENUE WITH 
TIME AND WE HAVE SAID TO THE 
MARKET THAT 2021 WE WILL SEE 
SOME IMPACT FROM 5G HOME AND 5G 
MOBILITY AND2022 FROM 5G MOBILE 
EDGE COMPUTE. 
THAT'S WHAT WE'VE SAID TO THE 
MARKET. 
SO 4G WILL CONTINUE TO BE 
IMPORTANT. 
WE INVEST 17 TO 18 BILLION U.S. 
DOLLARS EVERY YEAR IN NETWORK. 
THAT'S HOW IMPORTANT WE THINK 
THE NETWORK IS. 
>> WITH THE MILLIMETER WAVE 
TECHNOLOGY THAT YOU'RE USING, 
THAT INVESTMENT HAS TO GO UP, 
RIGHT, OVER THE NEXT COUPLE OF 
YEARS? 
>> YEAH. 
REMEMBER WE STARTED WITH 
MILLIMETER MAYBE FOUR, FIVE 
YEARS AGO AND WHEN YOU BUILD 
THE NETWORK, THERE'S A LOT OF 
STUFF YOU NEED TO INVEST IN 
BEFORE YOU COME TO THE STATION, 
WHICH IS ONE PIECE BUT NOT ALL 
OF IT. 
>> SO THE PART THAT PEOPLE SEE. 
>> YEAH. 
BUT THE FIBER INVESTMENT THAT 
WE'VE BEEN ONGOING FOR A WHILE, 
WE DO 400 ROUTE MILES OF FIBER 
EVERY MONTH RIGHT NOW IN THIS 
COUNTRY. 
I DON'T THINK THAT ANYBODY IS 
EVEN CLOSE TO BUILD AS MUCH 
FIBER AS VERIZON IS DOING THIS 
MOMENT. 
SO THERE'S A LOT OF OTHER STUFF 
THAT WE'RE ALREADY DOING THAT 
IS EMBEDDED IN ACTUALLY THE 
DELIVERY OF THE 5G EXPERIENCE. 
YOU NEED ALL THE WAY FROM THE 
DATA CENTER ALL THE WAY OUT TO 
THE CONSUMER TO RECEIVING THE 
5G IS A LOT OF INVESTMENT. 
WE CAN DO BASICALLY ALL THE 
INVESTMENT FROM THE DATA CENTER 
UP TO THE ACCESS AND WE'RE 
DOING THEM. 
>> IT'S NOT YET TO MY HOUSE. 
SO I'LL GIVE YOU MY ADDRESS 
AFTERWARDS. 
MAYBE WE CAN FAST TRACK THAT. 
I'M PRETTY HUNGRY FOR IT. 
OKAY. 
EXCELLENT. 
I THINK THAT THE LAST QUESTION 
I HAVE IS WHAT DO YOU THINK THE 
COMPETITIVE ADVANTAGE IS TO 
SOMEBODY BUILDING A COMPANY NOW 
OR IN THE NEXT LET'S CALL IT 
TWO YEARS? 
IF THEY WANTED TO BUILD OUT A 
PARTICULAR FEATURE SET THAT YOU 
THOUGHT WOULD BENEFIT OF THE 
MOST FROM 5G, WOULD IT BE A 
COMPUTE HEAVY LOCALIZED 
SERVICE? 
WOULD IT BE SENDING LARGE 
AMOUNTS OF DATA? 
LIKE WHAT CUSTOMERS ARE GOING 
TO BENEFIT THE MOST? 
>> I THINK THAT IF I WOULD BE 
THINKING ABOUT IT, I WOULD 
THINK A LOT ABOUT WHAT YOU WILL 
HAVE IN THE MOBILE EDGE COMPUTE 
BECAUSE YOU'RE GOING TO HAVE 
STORAGE COMPUTE IN THAT. 
SO YOU CAN ACTUALLY RETHINK THE 
WHOLE IDEA THAT YOU NEED TO 
HAVE THAT EITHER FOR UP IN THE 
NETWORK IN THE DATA CENTERS OR 
IN THE DEVICE, WHATEVER DEVICE. 
SOMETIMES WE LOCK OURSELF AS A 
PHONE. 
THERE ARE SO MANY OTHER DEVICES 
THAT IS CONNECTED. 
SO I THINK THAT WE'LL START 
RETHINKING HOW DO YOU BUILD A 
NEW -- JUST ASSUME DIGITAL 
CAMERAS, FOR EXAMPLE. 
THE COST OF THE DIGITAL CAMERA, 
THEY HAVE A LOT OF COMPUTER 
STORAGE IN THE CAMERA. 
SO THEY BECAUSE OF THE LATENCY 
AND ALL THAT, JUST IMAGINE YOU 
CAN TAKE OUT THAT. 
YOU PUT IT INTO THE NETWORK 
INSTEAD. 
WHAT CAN YOU DO WITH IT AND HOW 
CAN YOU CHANGE THE PERCEPTION? 
HOW CAN YOU DO A SERVICE ON 
THAT? 
THAT'S WHERE I REALLY WOULD 
LIKE TO THINK ABOUT, BUT THE 
GOOD THING, THERE ARE THOUSANDS 
OF PEOPLE THAT ARE FAR MORE 
SMARTER THAN ME THAT ARE GOING 
TO SEE WHAT THEY CAN TRANSFORM 
AND AS I SAID, I THINK 4G WAS 
JUST DRAMATIC WHEN IT COMES TO 
INNOVATION ON THE NETWORK. 
5G IS AN EVEN SUPERIOR PLATFORM 
FOR INNOVATION BECAUSE IT HAS 
SO MUCH MORE CURRENCIES THAT 
YOU CAN ACTUALLY BE A BUSINESS 
ON. 
>> EXCELLENT. 
THANK YOU VERY MUCH. 
I APPRECIATE IT, SIR. 
THANK YOU FOR COMING. 
>> THANK YOU. 
>> THANK YOU ALL. 
>> I NEED TO COME UP HERE. 
CAN YOU HURRY, PLEASE? 
I'M FIRED. 
NO. 
OKAY. 
UP NEXT ON THE Q AND A STAGE, I 
KNOW YOU GUYS ARE ALL HUSTLING 
TO GET OUT OF HERE BECAUSE WE 
DON'T HAVE ANYTHING EXCITING 
COMING UP NEXT, BUT JUST IN 
CASE YOU ARE ON THE Q AND A 
STAGE WE HAVE WINNING INVESTORS 
WITH PETE FLINT, RYAN HIRSCH 
AND PATRICK A NAKASKI. 
IF YOU GUYS CAN'T GET EXCITED 
FOR WHAT'S COMING UP NEXT, THEN 
WE ARE GOING HERE. 
YES. 
THANK YOU, THANK YOU. 
OUR NEXT GUESTS ARE ANG LEE AND 
WILL SMITH, BUT BEFORE I BRING 
THEM UP WE'RE GOING TO SHOW YOU 
A LITTLE VIDEO. 
ENJOY, GUYS. 
HAVE FUN. 
>> WHO ARE YOU? 
I DON'T WANT TO 
>>  SHOOT YOU. 
>> FINE. 
MIND IF I SMOOT YOU. 
>> HAS THIS EVER HAPPENED 
BEFORE, YOUR OWN GOVERNMENT 
TRYING TO KILL YOU? 
>> THIS IS A MOVIE THAT WILL 
EXPAND FILM MAKING IN THE 
FUTURE, THE WAY WE SHOT IT AND 
WE HAVE A DIGITAL HUMAN BEING. 
>> IT'S REALLY THE FIRST TIME 
THAT THE VISION OF THE FILM WAS 
TECHNOLOGICALLY ABLE TO BE 
REALIZED. 
YOU CAN TAKE SOMEONE AND YOU 
CAN HAVE A 50-YEAR-OLD VERSION 
AND A 23-YEAR-OLD VERSION AND 
IT'S PHOTO REALISTIC. 
>> IT'S NOT JUST TECHNOLOGY. 
THEY'RE STILL CREATING ART. 
>> HOLY MOLY. 
>> GOOD WORK, EVERYONE. 
>> THIS IS THE FOREFRONT OF 
DIGITAL HUMANS FROM AVATAR TO 
THE REALISM AND EMOTION OF 
PLANET OF THE APES. 
>> THEY'VE REALLY BUILT ON 
SUCCESS. 
THERE'S ALSO A LOT OF NEW 
INNOVATION AND NEW DEVELOPMENT 
FOR THE TEAM TO PULL TOGETHER. 
>> WE ARE CREATING A DIGITAL 
HUMAN THAT NOT ONLY DOES HE 
LOOK CONVINCE IS AND BELIEVABLE 
IN A FRAME, BUT HE ALSO LOOKS 
BELIEVABLE AT 120 FRAMES A 
SECOND. 
>> OUR ANIMATION TEAM REALLY 
GETS TO THE BOTTOM OF WHAT 
MAKES THE ESSENCE OF A 
PERFORMANCE? 
WHAT ARE THE FINAL NUANCES? 
>> FROM BREATHING TO THE TICS 
IN THE FACE. 
WE'VE GOT A LITTLE HEARTBEAT 
SHOWING IN HIS NECK AS WELL. 
WE'RE TAKING IT TO AN EXTRA 
LEVEL WE HAVEN'T DONE BEFORE. 
>> WHAT WE PUT ON THE SCREEN 
HAS TO LIVE UP EVERY SINGLE 
THING HE'S DONE ON SET. 
>> OF ALL THE PEOPLE IN THE 
WORLD WHY WOULD HE SEND YOU? 
>> BECAUSE I'M THE BEST. 
>> YOU ARE OBVIOUSLY NOT THE 
BEST. 
>> TECHNOLOGY ALLOWS THE 
AUDIENCE TO ENGAGE BE IN THE 
THEATRICAL EXPERIENCE IN A NEW 
WAY. 
>> STARTED TO EXPERIMENT WITH 
HIGH FRAME RATE 3D BECAUSE HE 
WAS SEARCHING FOR HEIGHTENED 
EXPERIENCE FOR THE VIEWER. 
>> SHOOTING IN 3D PLUS THIS, 
EVOLUTIONARY FORMAT WHERE YOU 
CAN SEE SO MUCH MORE IN A 
FRAME, REALLY FEEL LIKE YOU'RE 
THERE. 
>> SEE DETAIL OF THE FIGHT, 
DETAIL IN THE MOTION THAT WOULD 
BE BURIED IN BLUR AT A NORMAL 
FILM FORMAT. 
>> THE LOOK AND FEEL TENDS TO 
SPEAK TO THE YOUNGER GENERATION 
AND ANG IS REALLY PUSHING THAT 
TECHNOLOGY IN SPECTACULAR WAYS. 
>> GUYS, WE BROUGHT WILL SMITH 
AND ANG LEE TO DISRUPT! 
>> YEA! 
>> HELLO. 
>> YEA! 
>> A FEW PEOPLE HAVE THEIR 
PHONES OUT. 
THAT'S NICE. 
I THINK THEY'RE EXCITED. 
SO I GOT A CHANCE TO SEE GEMINI 
MAN ABOUT TWO WEEKS AGO. 
ANG WAS AT THE SCREENING AND HE 
DESCRIBED IT AS A LEAP OF FAITH 
BECAUSE OF THE TECHNOLOGY. 
WE'RE GOING TO TALK A LITTLE 
BIT MORE ABOUT THAT TECHNOLOGY 
IN A SECOND, BUT FIRST I WANT 
TO GO BACK TO THAT MOMENT FOR 
EACH OF YOU WHEN YOU REALIZED 
THIS IS WHAT YOU WERE GOING TO 
DO, YOU WERE GOING TO BUILD A 
YOUNG WILL SMITH ON A COMPUTER. 
HOW NERVOUS WERE YOU? 
>> WELL, I WAS ACTUALLY IS VERY 
EXCITED. 
I JUST TURNED 51 LAST WEEK. 
SO I WAS EXCITED BY THE 
PROSPECT OF HAVING A DIGITAL 
CHARACTER DO MY STUNTS BECAUSE 
MY BACK AND MY KNEES DON'T 
NECESSARILY WANT TO DO THE 
STUFF THAT THEY USED TO WANT TO 
DO. 
SO THE IDEA OF A CREATION WHEN 
ANG EXPLAINED WHAT HE WANTED TO 
DO, THAT IT IS THE FIRST EVER 
DIGITAL HUMAN, THAT IT'S NOT A 
DEAGED WILL SMITH. 
IT IS ACTUALLY A 100% DIGITAL 
CHARACTER AND THAT MADE ME -- 
THE POSSIBILITIES OF THAT GOT 
ME REALLY EXCITED. 
>> ANG, WERE YOU NERVOUS? 
>> EXTREMELY NERVOUS. 
KIND OF WHEN WE STARTED 20 
YEARS AGO WITH ALL THIS WITH 
HULK. 
THAT WAS THE FIRST TIME I THINK 
ANYBODY TRIED A FULL DIGITAL 
HUMAN. 
THEN 10 YEARS AGO I DID THE 
TIGER QUITE SUCCESSFULLY, MORE 
SO THAN HULK AND I KNOW DOING 
DIGITAL HUMAN IN THE BACK OF 
OUR HEAD WE DON'T WANT TO 
BELIEVE IT. 
WE WANT TO CHALLENGE IT. 
I KNOW THAT'S THE HARD PART, 
BUT I KNOW SCIENTIFICALLY IN MY 
HEAD I'M NOT A SCIENTIST, BUT 
IT SHOULD WORK AND I CALL IT 
LEAP OF FAITH BECAUSE PEOPLE 
INVEST SO MUCH MONEY IN THIS 
AND I TELL THEM I DON'T WANT 
THE AGE. 
I WANT TO CREATE FULL DIGITAL. 
I THINK IT'S TIME. 
IT'S REACHABLE AS WE THINK 
REACH, BUT NOBODY HAS DONE IT 
OR PROVEN IT CAN BE DONE. 
SO I WAS EXTREMELY NERVOUS, NOT 
FOR MYSELF, FOR THE INVESTORS. 
THEY PUT SO MUCH MONEY IN IT. 
WHAT IF IT DOESN'T WORK? 
WHAT IF PEOPLE DON'T WANT TO 
BELIEVE IT? 
WHAT WOULD HAPPEN? 
BUT I FEEL PRIVILEGED. 
AT THE SAME TIME IT'S A 
PRIVILEGE TO EVEN GIVE IT A TRY 
TO IMITATE GOD'S WORK AND PLAY 
WITH PEOPLE'S IMAGINATION. 
THAT'S DEFINITELY A PRIVILEGE. 
>> ONE OF THE OTHER QUESTIONS 
YOU WERE ASKED AT THE SCREENING 
IS WHAT DID WILL THINK WHEN HE 
GOT TO SEE THE COMPLETE OR NEAR 
COMPLETE JUNIOR FOR THE FIRST 
TIME? 
ANG SAID WHO CAN SAY WHAT WILL 
SMITH IS THINKING, BUT WE DO 
HAVE SOMEONE ON STAGE WHO MIGHT 
HAVE SOME IDEA. 
WHAT WAS IT LIKE? 
>> WHEN I FIRST SAW THE FIRST 
SHOT WITH THE TWO CHARACTERS 
SIDE BY SIDE, IT WAS REALLY 
CHILLING BECAUSE I'M LOOKING AT 
IT AND IT'S ME, BUT IT'S NOT. 
IT'S NOT ME. 
IT'S A COMPLETELY IS SEPARATE 
CHARACTER AND THERE ARE 
LITERALLY THOUSANDS OF ARTISTS 
THAT ARE CREATING EVERY LITTLE 
NUANCE OF THE MOVEMENT AND THE 
COLOR OF THE EYES AND THE 
WETNESS AND, YOU KNOW, SO THERE 
ARE THOUSANDS OF ARTISTS THAT 
ARE CREATING THAT. 
SO FOR ME THE FIRST TIME THAT I 
SAW THAT JUST THE ARTISTIC 
POSSIBILITIES, WHAT IT MEANT 
THAT WE COULD DO IN MOVIES NOW 
REALLY BLEW ME AWAY. 
>> DID YOU FEEL LIKE JUNIOR WAS 
BETTER LOOKING THAN YOU? 
>> YOU KNOW, I MEAN IF I COULD 
BE HONEST WITH YOU, I'M GLAD 
YOU BROUGHT THAT UP, YOU KNOW, 
THERE IS A CERTAIN GORGEOUSNESS 
TO AGE THAT JUST YOUNG FOLKS 
CAN'T CAPTURE THIS, MAN. 
YOUNG FOLKS CAN'T CAPTURE THIS. 
WHERE ARE ALL THE 20-YEAR-OLDS? 
ARE THERE ANY 20-YEAR-OLDS IN 
HERE? 
SEE, YOU ALL ARE NOT AS 
ATTRACTIVE AS THIS YET. 
YOU GOT TO GROW INTO THIS. 
>> SO LET'S TALK A LITTLE BIT 
MORE ABOUT THE TECHNOLOGY. 
WILL, YOU WERE SAYING LIKE YOU 
SAID THAT IT WAS NOT ABOUT 
DEAGING. 
IT WASN'T JUST ABOUT -- 
>> RIGHT. 
>> -- I DON'T WANT TO USE THE 
WORD WRINKLES, BUT WHATEVER IS 
HAPPENING OVER THERE IS 
AMAZING, BUT IT'S NOT JUST 
ABOUT TAKING YOUR REAL FOOTAGE 
AND TURNING YOU. 
>> BLACK DON'T CRACK. 
THAT'S WHAT THEY SAY. 
THAT'S THE WORD ON THE STREET. 
>> WHAT WAS IT ABOUT THIS 
APPROACH THAT APPEALED TO YOU 
VERSUS JUST HEY, LET'S DO WHAT 
WE'VE SEEN IN SOME OF THE 
MARVEL MOVIES, SOME OF THE STAR 
WARS MOVIES ALREADY? 
WHY WAS THIS THE APPROACH YOU 
WANTED TO TAKE? 
>> FOR ME I LIKE BACK, I'M OLD 
ENOUGH TO SEE WHAT IF I FACED 
MY YOUNGER SELF? 
I'M JUST OLD ENOUGH TO THINK 
ABOUT THAT EVEN. 
WILL, I DON'T KNOW IF HE DOES, 
BUT I THINK THE BEAUTY IS WHAT 
IF -- WHICH IS ALSO THE 
PROBLEM, THAT WILL IS A MUCH 
BETTER ACTOR NOW THAN BEFORE, 
RIGHT? 
SO THAT'S A PROBLEM. 
>> I HOPE. 
>> BUT IN MY HEAD WE PUT WHAT'S 
INSIDE OF THIS MAN AND HIS 
ATTRACTIVE YOUNG BODY, WHAT 
WOULD THAT CREATION BE AS KIND 
OF A BEST OF BOTH WORLDS AND 
WHEN HE FACES THAT IN SUCH 
MEDIA, YOU KNOW, I'M DOING THE 
3D WITH MORE CLARITY, SMOOTH-
OUT, KIND OF AN IMMERSIVE 
MOVIE, WHAT IS THAT LIKE? 
ACTUALLY NOBODY'S SEEN THAT, 
EVEN HIMSELF. 
>> RIGHT. 
>> HIS PARENTS, THEY'VE NEVER 
SEEN HIM CLOSE UP LIKE THIS. 
IT'S A NEW CREATION THAT HAS 
ALL THE BEST OF WILL AND ALL 
THE BEST OF ALL THE ARTISTS WE 
WORK ON AND WE TRY TO MAKE 
BELIEVE. 
SEE IF PEOPLE WILL BELIEVE THAT 
OR NOT. 
>> RIGHT. 
>> WILL IS WILL. 
YOUNGER AGE IS YOUNGER AGE AND 
THEN HONESTLY I DON'T REALLY 
CARE WHAT HE THINKS. 
THAT'S THE MOVIE. 
DOES THE MOVIE PLAY? 
DO THEY WANT TO INVEST? 
YOU KNOW, GET HIM OR EVERYTHING 
THEY TALK ABOUT IN THE 
INTRODUCTION. 
SCIENTIFICALLY THAT'S ACTUALLY 
THE EASIEST PART. 
THE STUDY THEY DO INTO AGING IS 
MIND BOGGLING, EVERY CELL, HOW 
DOES MOTION WORK, AGE, HOW TIME 
DO TO YOU, EVERYTHING. 
IT'S MIND BOGGLING, BUT WHEN 
YOU GET ALL THAT RIGHT, THAT'S 
JUST 10% OF THE WORK. 
THE OTHER 90% YOU JUST SCRATCH 
YOUR HEAD. 
WHAT'S THAT? 
GOD CREATED WORLD. 
IT'S NEARLY A CRAP SHOOT. 
THAT'S THE HARDEST PART, HOW 
YOU PLAY TO TAKE THAT ALONG TO 
PLAY IN SUCH MEDIA AND MAKE 
BELIEVE. 
THAT'S A NEW WORLD AND ALSO AN 
OLD WORLD YOU TRY TO REINSURE. 
>> SO LIKE YOU'RE SAY IS BEING, 
WHAT WE SEE ON SCREEN, JUNIOR 
IS PURELY A DIGITAL CREATION, 
BUT, WILL, YOU WERE ON SET 
WEARING THE DOTS, WEARING THE 
RIGS. 
YOU HAD TO PLAY YOURSELF. 
WHAT WAS THAT LIKE? 
>> IT'S REALLY A DIFFICULT 
UNDERTAKING TO TRY TO PLAY 
NAIVETE BECAUSE IT'S LIKE ONCE 
YOU KNOW SOMETHING IT SITS IN 
YOUR BODY. 
IT'S LIKE ONCE YOU HAVE SEX, 
RIGHT, YOU JUST WALK DIFFERENT, 
YOU KNOW? 
YOU GOT A DIFFERENT SWAGGER, 
YOU KNOW, BUT LIKE TO GO BACK 
TO THE MIND SET  MINDSET AND 
TRY TO REMEMBER WHAT WERE YOU 
FEELING, WHAT WERE THE EMOTIONS 
BEFORE, RIGHT, IT'S A DIFFICULT 
UNDERTAKING AS AN ACTOR TO TAKE 
KNOWLEDGE AWAY. 
YOU CAN ALWAYS TAKE NEW THINGS 
IN. 
YOU WANT TO PLAY A DOCTOR, SO 
YOU PUT NEW THINGS IN AND LEARN 
HOW DOCTORS MOVE AND THINK, BUT 
TO GO BACK TO PLAY YOUTH WAS A 
VERY DIFFICULT UNDERTAKING FOR 
ME. 
>> HOW MUCH OF THAT WAS MEMORY 
AND HOW MUCH OF IT -- BECAUSE 
OBVIOUSLY THERE'S AN INCREDIBLE 
AMOUNT OF FOOTAGE OF YOU IN 
YOUR TEENS AND 20s. 
>> RIGHT. 
>> DID YOU HAVE TO WATCH A LOT 
OF THAT TO TRY TO DO THIS? 
>> WHAT WAS GREAT THAT ANG DID 
IS HE ESSENTIALLY LOOKED 
THROUGH MY ENTIRE FILMOGRAPHY 
AND HE CREATED TAKES OF THINGS. 
HAD HE SIX DEGREES OF 
SEPARATION AND THE FIRST BAD 
BOYS, FRESH PRINCE OF BEL-AIR, 
MEN IN BLACK, INDEPENDENCE DAY 
AND HE WENT THROUGH AND GRABBED 
THESE THINGS AND SAT ME DOWN 
AND I'M LIKE OH, THIS IS GREAT. 
THIS DUDE'S A REAL FAN AND HE'S 
LOOKING AND HE WAS LIKE THIS IS 
VERY GOOD. 
NOTICE HOW YOUR EYES 
COMMUNICATE THE SIMPLE ESSENCE 
OF INNOCENCE. 
I'M LIKE YEAH, YEAH. 
YOU KNOW, THAT'S WHAT I WAS 
DOING BACK THEN, MAN. 
AND THEN HE WENT OVER TO THE 
NEXT ONE. 
HE SAYS THIS IS VERY, VERY BAD. 
DON'T DO THIS IN MY MOVIE. 
I WAS LIKE, YOU KNOW, HE WENT 
THROUGH ALL OF THE FILMS, BUT 
WHAT WE WERE ABLE TO DO IS WE 
WERE ABLE TO CREATE A DIALOGUE. 
WE ACTUALLY SORT OF CREATED A 
LANGUAGE AND IN THAT PROCESS I 
SAW THE DEPTH OF WHAT HE WAS 
TRYING TO DO, RIGHT, TO TRY TO 
MAKE A DIGITAL CHARACTER 
COMMUNICATE A BRIEF MOMENT OF 
UNCERTAINTY, BUT TO DO IT WITH 
BINARY CODE LIKE TO BE ABLE TO 
TRY TO CREATE SOMETHING THAT TO 
HAVE A COMPUTER CAPTURE THAT 
ESSENCE, IT WAS A POWERFUL 
UNDERTAKING. 
>> SO ONCE WILL HAD DONE HIS 
WORK ON THE SET YOU GUYS I 
THK YOU SAID IT WAS BASICALLY 
A TWO-YEAR PROCESS WITH THE 
DIGITAL AND THEY TOOK WHAT YOU 
DID AND THEY BUILT JUNIOR. 
TALK A LITTLE BIT MORE ABOUT 
WHAT THAT PROCESS OF WORKING 
WITH THIS WAS LIKE. 
IT'S SORT OF UNPRECEDENTED. 
WHAT WERE THE BIG CHALLENGES? 
>> TWO YEARS, ONE YEAR IS IN 
PREP AND SHOOTING AND THE OTHER 
ONE YEAR IS POST. 
YOU WANT TO BE A GOOD CITIZEN 
WHILE YOU PLAN IT. 
IF YOU SAY I DON'T FEEL LIKE 
DOING IT. 
I WANT TO KILL HIM BECAUSE 
WE'RE PLANNING A LONG TIME. 
SO WE'RE GUESSING, EDUCATED 
GUESS, THAT IS, VERY GOOD GUESS 
AND WE DO MOCK-UPS, TRIED THIS, 
TRIED THAT. 
WE DO A LOT OF TESTS. 
WE DID OUR SIGNS OF THEN WE 
DEVELOPED METHODOLOGY ON THE 
SHOOTING DAY WHICH IS PRECIOUS 
MOST EXPENSIVE TIME AND THEN WE 
CAPTURE IT LAYER BY LAYER OUT 
OF THE CLUMSY 3D CAMERAS AND A 
LOT OF TECHNICIANS. 
THREE ROOMS OF TECHNICIANS. 
THEY ALL LOOK BUSY. 
I DON'T KNOW WHAT THEY'RE DOING.
IT'S VERY INCONVENIENT. 
A GOT THING HE'S GOT A GOOD 
WORK ETHIC.
YOU'VE GOT 500 ARTISTS IN NEW 
ZEALAND TO TRY TO MAKE IT WORK. 
SOME SHOTS WILL TAKE LIKE A 
YEAR TO REALIZE. IT TAKES 
MONTHS FOR ME TO TRY TO FIGURE 
OUT. 
WHY YOU WOULD WANT TO BELIEVE 
THAT A YOUNG WILL SMITH IS 
DOING THAT CHARACTER AND THAT 
IS TO BE STUDIED BY THIS. 
HOW DOES THAT FEEL, THE FLOW OF 
THE STORY? 
I THINK IT'S REALLY SURPRISING. 
TO MAKE  HIM LOOK ALIVE IS NOT 
THE HARDEST THING. 
IMAGINING HIM BEING A BETTER 
ACTOR DOING THOSE THINGS TO 
LOOK LIKE SOMETHING IN THE 
TEXTURE AND THE LIGHTING AND 
ANGLED,  ANGLES, YOU JUST 
COULDN'T FIGURE OUT. 
YOU JUST KEPT TRYING AND TRYING 
AND TRYING. 
SOMETIMES YOU FIND LITTLE 
TRICKS AND ALSO I THINK ON TOP 
OF THAT, WHY HE DO THIS SO 
LONG? 
HIS CHARM. 
WHY HE LOVE HIM? 
YOU PLAY A TERMINATOR TYPE OF 
GUY AND YOU STILL WANT TO FEED 
HIM CHICKEN SOUP? 
WHAT IS THAT SECRET? 
IS THAT THE CORNER OF HIS EYES, 
RAISE HIS EYEBROW? 
YOU JUST KEEP TRYING. 
THE DIFFERENCE BETWEEN PEOPLE 
ARE MUMP LARGER THAN 2D. 
SO THEN YOU HAVE ME SAYING ONE 
THING, THE SUPERVISOR SAYING 
ANOTHER, THE EDITOR. 
THE FIVE PEOPLE, THEY ALL TELL. 
IT'S VERY DIFFICULT, BUT IT'S 
ALSO A PRIVILEGE THEY GET TO 
FIGURE THAT OUT. 
>> YEAH. 
THE THING THAT WAS REALLY FOR 
ME -- OH OH. 
YOU ALL RIGHT, BUDDY? 
HE FELL. 
YOU GOOD? 
ALL RIGHT. 
SECURITY. 
NO. 
THE FIRST THING IS IT'S 120 
FRAME AND 3D. 
SO IT'S SO SHARP AND YOU'RE SO 
CLOSE AND IT'S SO CLEAR THAT 
THE ACTORS COULDN'T WEAR 
MAKEUP. 
THAT'S HOW CLOSE THE CAMERA 
COULD DETECT MAKEUP AND IT 
WOULD LEAVE A FILM, YOU KNOW, 
OVER THE SKIN AND ANG WAS LIKE 
YOU DON'T BELIEVE IT. 
SO YOU GET, YOU KNOW, RAW. 
IT'S WIDE OPEN AND WHAT ANG 
KEPT TALKING ABOUT THAT I LOVED 
IS TO GIVE PEOPLE A REASON TO 
GO TO A MOVIE THEATER WHERE YOU 
CAN SEE SOMETHING AND 
EXPERIENCE SOMETHING THAT'S 
DIFFERENT THAN YOU CAN ON YOUR 
BIG SCREEN TELEVISION AT HOME 
AND THE REVITALIZING AND THE 
ELEVATING OF THE CINEMA GOING 
EXPERIENCE AND ANG WAS SAYING 
PEOPLE CALLING IT HIGH FRAME 
RATE AND HE'S LIKE NO. 
I LIKE TO REFER TO EVERYTHING 
ELSE IN THE CINEMA AS LOW FRAME 
RATE AND, YOU KNOW THAT, IDEA 
TO TRY TO REALLY CAPTURE AND TO 
BE AT THE FOREFRONT OF A NEW 
WAY THAT PEOPLE WATCH AND 
CONSUME FILMS. 
>> YOU SEE THROUGH PEOPLE. 
THAT'S THE BEAUTY OF IT. 
I THINK CLOSEUP SUPPORT BEST  
THING OF THIS MEDIA. 
THEIR PERFORMANCE HAS TO BE 
ADJUSTED. 
THE WAY THEY PREPARE A 
CHARACTER AND LEAVING A MOMENT 
HAS TO BE REALLY JUDGED. 
I DO BELIEVE AS HARSH AS IT 
SOUNDS, SEEMS TO BE PUNISHING 
EVERY REAL HIGH FRAME RATE, 
SHARPNESS AND ALL THAT, AT THE 
SAME TIME YOU HAVE MORE TO WORK 
WITH. 
IT'S A DOUBLE EDGED SWORD. 
AT THE SAME TIME IT'S 
INTIMIDATING. 
ON THE OTHER HAND, YOU HAVE SO 
MUCH MORE TO GAIN. 
YOU CAN WORK ON THE THINGS. 
IT JUST GOT BLURRED OUT BEFORE. 
SO AS LONG AS YOU BE CAREFUL, 
IT'S VERY EXCITING ACTUALLY, 
CARB, BUT IT'S VERY EXCITING. 
>> I DO WANT TO TALK A LITTLE 
BIT ABOUT WHAT AT LEAST FOR NOW 
WE'RE TALLING HIGH FRAME RATE 
AND 3D BECAUSE I THINK THERE'S 
-- 
>> I DON'T REALLY WANT TO SAY 
THAT. 
>> HE SAID IT ANYWAY. 
STROKE FREE. 
>> STROKE FREE. 
>> RIGHT. 
I THINK THERE'S BEEN WITH SOME 
OF THE INITIAL FILMS LIKE THE 
HOBBIT AND WITH BILLY LYNN 
WHICH YOU MADE BEFORE THIS I 
THINK THERE'S BEEN A LITTLE BIT 
OF SKEPTICISM. 
SOME PEOPLE SAID HEY, THIS 
DOESN'T LOOK LIKE A MOVIE. 
THIS LOOKS LIKE A SOAP OPERA. 
I DON'T KNOW WHAT THIS IS, BUT 
IT DOESN'T LOOK LIKE A MOVIE. 
WHY DO YOU THINK THERE'S A 
DISCONNECT WITH PEOPLE WITH ALL 
THE ARTISTIC POSSIBILITIES SAY 
I DON'T LIKE THE WAY IT LOOKS? 
>> I HATE TO SAY THIS. 
WE HAVE A NEW MEDIA. 
WE DON'T KNOW WHAT TO DO WITH 
IT. 
WE'RE NOT GOOD AT IT. 
THAT'S ALL. 
SOMEDAY IT WILL BE GOOD AND 
PEOPLE WILL ENJOY IT. 
IT WILL CREATE A DIFFERENT 
FORMAT OF OUR ART. 
IT'S DEFINITELY A DIFFERENT ART 
FORMAT, BUT WHAT WE KNOW IS 
FILM. 
THAT'S ALL WE KNOW. 
SO WE'RE IMITATING SOMETHING 40 
YEARS AGO. 
I THINK THAT'S THE PROGRAM. 
>> PART OF WHAT YOU'RE DOING IS 
FIGURING IT OUT. 
>> AND ALSO THE CONVERSATION IT 
DID FOR LOWER GRAIN RATE OR THE 
GRAININESS OF FILM THAT 
ASSOCIATED WITH A LOT OF 
ARTISTIC APPROACH OR EVEN 
NEGOTIATION. 
THAT CREATES THE MOST 
TREMENDOUS OUTREACH EXPERIENCE, 
MOVIES WITH A LOT OF MOVIE 
LENS. 
SO THAT'S THE PART, NOT THE 
MEDIA.  
IT'S THE ARTISTIC ENDEAVOR IN 
DEALING WITH OUR MEDIA, THE 
STORY YOU TELL, THE BEAUTY. 
THAT'S FANTASTIC, BUT NOW 
YOU'RE HAVING DIFFERENT MEDIA. 
IF YOU DO THE SAME THING, OF 
COURSE, IT DOESN'T LOOK AS 
GOOD. 
YOU HAVE TO FIND THE THING THAT 
BELONGS TO THIS MEDIA WHICH I 
THINK INVOLVES IN MORE LIFELIKE 
KIND OF BEAUTY. 
WHY WE LOOK AT SOMETHING AND 
SAY THAT'S BEAUTIFUL, WHY IT'S 
NOT, WE HAVE TO GET TO THE 
BOTTOM OF IT AND FIND THE 
BEAUTY THAT BELONGS TO DIGITAL 
CINEMA. 
MAYBE IT'S DIMENSION, THE 
CONTRAST, MAYBE MORE LIFELIKE. 
I FOUND SOME OF THE SHOTS I DO 
IN 3D IT'S A LOT MORE BEAUTIFUL 
IN 2D. 
IT'S LIKE THERE'S NO WAY YOU 
CAN FILM WATER, YOU CAN DO 
SHOTS IN WATER, THERE'S NO WAY 
YOU CAN DO THAT CLOSE UP UNLESS 
YOU HAVE CLARITY, DIMENSION. 
THAT'S WHAT EYES DO IN REAL 
LIFE, BUT WHEN YOU'RE THAT 
CLOSE TO LIGHT, HOW CAN YOU 
CREATE ART? 
CAN YOU DREAM WITH CLARITY? 
STOP REALLY EXISTENTIAL 
QUESTIONS. 
GIVE US SOME TIME. 
WE'LL GET THERE. 
I BELIEVE THIS IS A NEW MEDIA 
WORTH GRABBING AND THAT'S 
DIGITAL. 
IT'S NOT TECHNOLOGY. 
TECHNOLOGY IS A TOOL LIKE, YOU 
KNOW, 100,000 YEARS AGO THERE'S 
NO SUV  SUCH TECHNOLOGY AS OIL 
PAINTING OR WATERCOLOR OR EVEN 
LANGUAGE IN YOU GO BACK. 
SO GIVE US A CHANCE TO LEARN 
HOW TO DO IT, HOW TO ACT IN IT, 
HOW TO MAKE IT LOOK PRETTY, HOW 
TO TELL STORIES, HOW WE MAKE 
BELIEVE, HOW WE DO ART 
DEPARTMENT, HOW WE EVEN PULL IN 
FOCUS WHICH IS IMPOSSIBLE. 
YOU GO IN. 
WHEN WILL IS ABOUT TO DO 
SOMETHING, HE HAS A BIGGER 
FILMOGRAPHY THAN I DO AND HE 
KNOWS AHEAD OF TIME WHY HE'S 
TAGGING ALL THE DIGITAL DATA 
ALONG WITH HIM WHILE HE'S ONE 
SECOND BEHIND WE HAVE TO BE 
HALF A SECOND AHEAD OF WHAT 
HE'S ABOUT TO DO AND EVERY EYES 
GO TO DIFFERENT PLACES. 
PULLING FOCUS, IT'S IMPOSSIBLE 
AND YOU CAN SEE IT. 
HOW DID HE DO THAT? 
WHAT KIND OF A TECHNOLOGY WE 
NEED TO DEVELOP TO ACCOMMODATE 
THIS KIND OF ARTISTIC ENDEAVOR? 
IT'S A HUGE QUESTION. 
SO GIVE US SOME TIME TO FIGURE 
IT OUT. 
>> ACTUALLY GIVE US TILL 
OCTOBER 11th WHEN GEMINI MAN 
COMES OUT. 
MAKE SURE YOU GO SEE THAT. 
>> THAT'S RIGHT. 
SO CHANGING SUBJECTS SLIGHTLY, 
WILL, LAST YEAR YOU LAUNCHED 
WITH KISUKI HONDA WHICH VC FIRM 
CALLED DREAMERS VC. 
YOU ARE NOW A VENTURE 
CAPITALIST. 
YOU ARE NOW A STARTUP INVESTOR. 
WHY DID YOU WANT TO DO THAT? 
>> I MET WITH CASE K AND WE HIT 
IT OFF IMMEDIATELY AND WE FELT 
LIKE THERE WAS A BEAUTIFUL 
INTERSECTION BETWEEN BEING ABLE 
TO CREATE BUSINESSES, BUT ALSO 
TO STAY FOCUSED ON SOLVING 
PROBLEMS OF THE WORLD. 
SO WE SORT OF -- OUR 
RELATIONSHIP STARTED TO DEVELOP 
AND THEN WE SAID KISKUI HAD A 
FEW BANKING RELATIONSHIPS IN 
JAPAN THAT WERE LOOKING TO MAKE 
THEIR WAY INTO THE UNITED 
STATES. 
SO THE RELATIONSHIP WORKED OUT 
WELL AND I HAD ALREADY BEEN 
INVESTING AND HE HAD ALREADY 
BEEN INVESTING AND OUR VALUES 
WERE IN ALIGNMENT. 
SO WE CAME TOGETHER AND A LOT 
OF PEOPLE THAT FELT THE INITIAL 
IDEAS JUMPED IN. 
JUST WATER WAS ONE OF COMPANIES 
THAT WE STARTED. 
WE INVESTED IN BORING TECH. 
SO, YOU KNOW, WE WANT TO SOLVE 
SOME OF THE WORLD'S PROBLEMS. 
WE WANT TO DO WELL BY DOING 
GOOD. 
>> SO OUTSIDE OF MOVIES WHAT 
ARE -- YOU MENTIONED A COUPLE 
COMPANIES AND THEY'RE VERY 
DIFFERENT. 
WHAT ARE LIKE THE KINDS OF 
TECHNOLOGIES THAT YOU'RE 
EXCITED ABOUT? 
>> YOU KNOW, ACTUALLY WE'RE 
HERE AT TECH CRUNCH, WE SHOULD 
PROBABLY SEE WHAT'S GOING ON IN 
THIS SPACE, YOU KNOW. 
I'M WIDE OPEN. 
>> ALL RIGHT. 
>> I'M WIDE OPEN. 
>> THAT'S MY CUE BECAUSE WE 
TOLD WILL THAT THIS IS A 
STARTUP CONFERENCE. 
HE IS A STARTUP INVESTOR. 
HE WANTED TO MEET SOME OF THE 
STARTUPS. 
WE COULDN'T DO THE COMIC-CON 
THING OF PUTTING A MASK ON YOU 
AND HAVING YOU WALK AROUND. 
WE'RE GOING TO BRING SOME 
STARTUPS ONTO THE STAGE. 
THESE ARE STARTUPS FROM THE 
STARTUP ALLEY. 
WE'RE GOING TO GET 40 SECONDS 
TO PRESENT. 
SO IT'S GOING TO BE EXTREMELY 
TIME INTENSIVE. 
I'M GOING TO CUT THEM OFF. 
THEY FOUND OUT LIKE TWO OR 
THREE HOURS AGO. 
>> OH, WOW. 
IN MOVIES WE CALL THAT THE 
ELEVATOR PITCH. 
IN HUMAN I HAVES  MOVIES CAN 
YOU MAKE THE ELEVATOR PITCH? 
>> LET'S BRING OUT OUR STARTUPS 
FOR THE ELEVATOR PITCH. 
>> I LOVE. 
THAT OKAY. 
>> ARE THEY HERE? 
THERE THEY WERE. 
>> HOW YOU GUYS DOING? 
HEY. 
>> WE ARE GOING TO START WITH 
AIR B. PRESENTING FOR AB IS 
CHRISTIAN RAMEY. 
>> WHAT'S UP, MAN? 
>> ALL RIGHT. 
>> ARE YOU NERVOUS? 
>> VERY NERVOUS. 
>> VERY NERVOUS. 
DON'T WORRY ABOUT IT. 
THIS IS ONLY AN OPPORTUNITY OF 
A LIFE TIME AND EVERYTHING 
RIDES ON THIS. 
SO JUST RELAX INTO THAT. 
RELAX INTO THAT. 
>> ALL RIGHT. 
>> THERE'S JORDAN. 
WHERE YOU TAKING HIM, JORDAN? 
OVER THERE. 
OKAY. 
SO THAT'S THE MARK. 
ALL RIGHT, ALL RIGHT. 
LOOSEN UP. 
YOU'RE GOING TO LIVE OR DIE ON 
THIS MOMENT. 
GO FOR IT. 
>> 40 SECONDS. 
>> I'M CHRIS FROM AIR B. CITIES 
CONGESTED WITH TRAFFIC JAMS AND 
THE LAST MILE IS ALWAYS THE 
LEAST EFFICIENT PART OF A 
JOURNEY. 
MEANWHILE PEOPLE HAVE BICYCLES 
SITTING AT HOME THAT ARE 
UNDERUSED. 
AT AIR B WE WANT TO PROMOTE 
BIKE SHARES AS A MEANS OF 
TRANSPORTATION WHILE GENERATING 
REVENUES FOR THE BIKE OWNERS. 
WE HAVE DEVELOPED A SMART BIKE 
LOOK WITH A GPS THAT CAN BE 
INSTALLED ON ANY BIKE SO THAT 
ANYONE CAN START A BIKE SHARING 
FLEET IN JUST A FEW MINUTES. 
YOU CAN INSTALL IT ON YOUR BIKE 
AND START TO MAKE MONEY BY 
SHARING IT AND WE JUST TAKE A 
SMALL FEE. 
THANK YOU. 
>> WILL, YOU GOT QUESTIONS? 
>> SO IT'S SIMILAR TO LIKE THE 
UBER VIBES OF BIKES? 
HOW IS IT DIFFERENT FROM -- 
WHAT DO YOU THINK YOU'RE 
IMPROVING ON? 
>> WE DON'T PROVIDE THE BIKES. 
WE USE BIKES OF PRIVATE PEOPLE 
AND THEY MAKE MONEY WITH IT AND 
WE SHARE IN THE FEE. 
>> I LIKE THAT. 
ANTHONY, DO YOU HAVE ANYTHING? 
>> NO. 
I'M GOOD. 
THE NEXT COMPANY COMING UP IS 
BITTER CONSTRUCTION APP. 
PRESENTING IT CODY SHEEHAN. 
>> CODY, WHAT'S UP, CODY? 
>> HOW YOU GUYS DOING? 
>> I'M GOOD. 
YOU NERVOUS? 
YOU GOT TO TALK IN THE 
MICROPHONE, CODY. 
SO LISTEN. 
THIS IS GOOD. 
YOU'RE VERY HANDSOME, CODY. 
SO IT'S ALREADY WORKING FOR 
YOU. 
I HEARD SOMEBODY WHEN YOU 
WALKED OUT, SOMEBODY WENT WOO. 
SO YOU'RE ALREADY IN A GOOD 
PLACE. 
SO YOU SHOULD SELL YOUR 
HANDSOMENESS ALONG WITH YOUR 
PRODUCT, OKAY? 
>> SOUNDS GOOD. 
>> YOU GOT IT? 
ALL RIGHT. 
GO. 
>> HI, GUYS. 
I'M CODY WITH BITTER. 
BITTER CONNECTS LATINO 
CONSTRUCTION WORKERS WITH JOBS 
IN THE U.S. OUR MISSION IS TO 
EMPOWER LATINO COMMUNITIES AND 
BRING EFFICIENCY BACK TO THE 
$1.3 TRILLION INDUSTRY. 
IN 2019 ALONE WE PROJECT OVER 1 
MILLION NEW IMMIGRANTS ENTERING 
THE COUNTRY AND AT THE SAME 
TIME THERE'S A 79% MASS LABOR 
SHORTAGE. 
CURRENTLY OUR APP SERVES 40-
BASED CONSTRUCTION CREWS. 
THIS UNDERSERVED WORKFORCE IS 
MISSING THE TECHNOLOGY TO HELP 
THEM CONNECT WITH HOMEOWNERS. 
>> YOU'RE OUT OF TIME. 
>> WILL? 
>> HOLD ON. 
ALL RIGHT. 
SO I LIKE THAT IDEA. 
TRYING TO SOLVE THE PROBLEM. 
THE APP IS ALREADY UP AND 
RUNNING. 
>> IT IS. 
>> WHAT CITIES? 
WHAT STATES? 
>> RIGHT NOW WE'RE FOCUSING ON 
HOUSTON, DALLAS, SAN FRANCISCO 
AND SAN DIEGO. 
>>. 
>> HOW DOES THAT FUNCTION? 
>> CURRENTLY WE'RE IN A REALLY 
LARGE SWING ONE DIRECTION AND I 
BELIEVE IN THE NEXT YEAR OR TWO 
WE'LL BE PUSHING IN THE 
OPPOSITE DIRECTION. 
THIS IS THE TIME WHEN BIDDER 
CAN CAPITALIZE ON THAT SWING OR 
THAT MOMENTUM. 
>> HOW ARE YOU INTERFACING THE 
COMPANY WITH THE WORKERS? 
>> SO WE'RE A TWO-SIDED 
MARKETPLACE WHERE WE HAVE AN 
APP WHICH IS ALSO IN ENGLISH 
AND SPANISH FOR THE WORKERS AND 
THEN WE HAVE THE APP WHICH IS 
THE HOMEOWNER USER INTERFACE. 
>> GOT IT. 
SO IT'S THE HOMEOWNER. 
SO IT'S NOT LIKE -- 
>> IT COULD ALSO BE LARGER 
CONSTRUCTION JOBS. 
WE'RE KIND OF SMALL TO MID-SIZE 
JOBS. 
>> SO WHAT'S THE MAJORITY RIGHT 
NOW? 
MAJORITY IS HOMEOWNER TO 
WORKER? 
>> YEAH. 
THE MAJORITY WOULD BE THAT WAY. 
>> ALL RIGHT. 
HOW DO YOU MONITOR HOW THE JOBS 
WENT, HOW IT WENT WITH THE 
PEOPLE? 
HOW ARE YOU -- 
>> SO AS THE JOBS GET CALLED 
INTO OUR SYSTEM, WE INPUT THEM 
INTO THE DATABASE AND THE 
CONSTRUCTION WORKERS IN LIVE 
TIME CAN VIEW THE NEW JOBS AND 
PLACE BIDS. 
>> WHAT IS GOING ON? 
>> WHAT IS HAPPENING? 
>> DID YOU KNOW THAT 75% OF 
PEOPLE CHECK OUT YOUR COMPANY'S 
SOCIAL MEDIA CHANNELS BEFORE 
EVEN POP APPLYING FOR A 
POSITION? 
WHAT IS THAT? 
IN ORDER TO ATTRACT THE BEST 
TALENT AND ENGAGE THE BEST 
EMPLOYEES, COMPANIES NEED TO 
SHOWCASE THEIR CULTURE. 
AT AN AFFORDABLE MONTHLY 
CONTRACT, SO SHE AND I DON'T 
MATCHES COMPANIES WITH 
FREELANCE EMPLOYER PLANTINGS 
THAT CREATE CONTACT SHOWCASING 
COMPANY CULTURE, WORK WAS 
ENVIRONMENT AND DIVERSITY. 
WITH OVER 250 FREELANCE 
EMPLOYER BRAND TEAMS ON OUR 
PLATFORM, SO SHE WILL NOT A 
WANTS TO TELL THE COAT MEETINGS 
BEHIND THE CULTURE THAT MAKES 
COMPANIES GREAT. 
WE ARE EXCITED ABOUT THIS 
$10,000,000.08 HIGH-TECH 
INDUSTRY. 
THANKS. 
>> RIGHT ON TIME, NICE.
>> OKAY, I AM IN, I AM IN. 
SO YEAH, AS YOU CAN IMAGINE, 
THAT IS SOMETHING THAT IS 
REALLY CLOSE. 
AS I BUILD OUT MY SOCIAL MEDIA 
TEAM, THAT WAS THE IDEA THAT I 
WANTED TO TAKE BACK MY 
STORYTELLING FROM THE DAILY 
MAIL. 
SO I WANTED TO TAKE BACK MY 
STORYTELLING AND I THINK THAT 
IS HUGELY IMPORTANT. 
SO HOW IS IT WORKING BETWEEN 
HOW YOU INTERFACE THE COMPANY 
WITH PICKING THE PERSON THAT 
THEY ARE GOING TO USE? 
>> SO OBVIOUSLY, A LOT OF 
COMPANIES CARE ABOUT SOCIAL 
MEDIA FOR THEIR PRODUCTS. 
FORGET THE HR TEAM FORGETS 
ABOUT THE ACTUAL CULTURE AND 
PEOPLE THAT ARE USED TO ATTRACT 
TALENT. 
WE CUSTOMIZE AND MANAGE A TEAM. 
THE TEAM CREATES A CREATIVE 
DIRECTOR, A PRODUCT MANAGER AND 
THEN VIDEOGRAPHER, PHOTOGRAPHER 
AND THEY INTEGRATE WITH THE HR 
TEAM TO CREATE EMPLOYEE 
TESTIMONIALS, COMPANY 
ANNOUNCEMENTS, NEW THINGS THAT 
ARE HAPPENING WITH THE COMPANY. 
SOME COMPANIES EVEN LIKE 
NETFLIX, THEY HAVE A WHOLE 
SEPARATE CHANNEL SHOWCASING 
THEIR ENTIRE EMPLOYEE BRAND. 
WE WANT TO BRING THAT TO 
ENTERPRISES I DO NOT TYPICALLY 
USE CONTENT TO ATTRACT AND 
MAINTAIN EMPLOYEES AND THINGS 
OF THAT NATURE. 
>> THAT IS WILDLY WILDLY 
EXPENSIVE. 
I KNOW THAT FIRSTHAND. 
HOW ARE YOU CUTTING DOWN COST? 
>> IT IS EXPENSIVE. 
WE ARE TARGETING THEORIES BE 
FUNDED COMPANIES AND LARGER 
ENTERPRISES, BUT WE ARE STILL 
MORE AFFORDABLE THAN A CREATIVE 
AGENCY THAT IS GOING TO BRING 
THEM OVER THE HEAD WITH A. THAT 
IS WHY WE HAVE THESE FEELINGS 
EMPLOYER BRAND TEAMS AND OUR 
FREELANCERS THAT ARE PART OF 
THESE TEAMS, THEY HAD 
EXPERIENCE WORKING WITH LARGE 
COMPANIES AND ENTERPRISES. 
SO EVEN THOUGH OUR PRICES ARE 
SO EXPENSIVE, IT IS A BETTER 
OPTION THAN SAY SOME OF THE 
OTHER OPTIONS WITH THE LARGER 
CREATIVE AGENCIES THAT MIGHT 
WANT TO BE INVOLVED IN CREATING 
CONTENT SHOWCASING THEIR 
WORKPLACE ENVIRONMENT. 
>> THANKS. 
THAT IS VERY GOOD.
>>  SOCIONADO, THAT WAS VERY 
GOOD. 
>> WE HAVE ONE MORE ONE MORE 
AND I AM TAKING A LOT OF TIME. 
>> HOW ARE YOU FEELING? 
WELCOME. 
>> THIS IS MINUTE, PREVENTING 
SERGEY. 
HELLO EVERYONE. 
HOW IS YOUR MOOD TODAY?
>> SPECTACULAR. 
>> I AM THE COFOUNDER AND CEO 
OF MOOD BIT. 
WE ARE AN ANALYTICS COMPANY 
FOCUSED ON EMPLOYEE SENTIMENTS 
TO IMPROVE ENGAGEMENT AND 
RETENTION. 
COMPANIES IN THE U.S. ARE 
LOSING MORE THAN $600 BILLION 
EVERY YEAR BECAUSE OF THIS 
ENGAGEMENT AND TURNOVER. 
WE INTEGRATE OUR AI PLATFORM TO 
COMMUNICATION PLATFORMS LIKE 
GMAIL OR MICROSOFT PLATFORMS. 
WE CAN UNDERSTAND THERE ARE 
SENTIMENTS AND MANAGERS CAN 
HAVE REAL-TIME SCORES AT THE 
SENTIMENTS AND THEY DO NOT HAVE 
TO WAIT FOR THE RESULTS OF 
SURVEYS ONCE OR TWICE A YEAR. 
ON TOP OF THAT, HE ANALYTICS IS 
NOT ENOUGH. 
WE ARE PROVIDING THE MANAGERS 
WITH ACTION PLANS SO THEY CAN 
HAVE HAPPIER EMPLOYEES.>> 
GREAT. 
>> I AM TRYING TO BE THE BAD 
YOU CAN BE THE TOP.>> THANK YOU 
VERY MUCH. 
WE HAVE A RED 000. 
I WILL SPEAK TO YOU BACKSTAGE. 
THANK YOU VERY MUCH.
>> THAT IS A 000 FOR THE 40 
SECONDS. 
>> OKAY, BECAUSE IT WAS WHITE 
AND THEN IT TURNED RED. 
>> OR THEY DID NOT TELL ME 
SOMETHING. 
WE ARE GOOD. 
>> SO YOU ARE THE CEO? 
HOW MAY PEOPLE ARE YOU WORKING 
WITH TWO 
>> WE ARE SEVEN PEOPLE.>> SO 
WHAT HAVE YOU DONE SO FAR IN 
TERMS OF WORKING IN THE 
WORKPLACE?
>> WE CREATED A CONCEPT. 
WE CREATE THE PRODUCT AND 
LAUNCH IT. 
RIGHT NOW, WE ARE WORKING WITH 
ENTERPRISES. 
WE HAVE A PARTNERSHIP WITH 
ERNEST AND YOUNG. 
>> ALL RIGHT. 
I AM SORRY, I GOT DISTRACTED. 
I AM VERY SORRY. 
I WILL SPEAK TO YOU BACKSTAGE. 
I AM SORRY I GOT DISTRACTED. 
>> GIVE IT UP FOR A MOVE 
THAT.>> I DO NOT WANT TO PUT 
YOU ON THE SPOT. 
NOW SEEING THESE FOUR PAGES, A 
COMFORTABLE SAYING IS THERE A 
FAVOR YOU WOULD LIKE TO BRING 
UP HERE FOR IS HEALTHY?>> I 
THINK KOFI DID THE MOST 
BEAUTIFUL AND MOST AGGRESSIVE.
>> COME ON UP, COME ON UP.
>> I THINK ALSO, YOU KNOW, THAT 
WAS THE BEST PITCH. 
WE ARE GOING TO ROCK IS 
HEALTHY. 
THIS IS HEALTHY, I WANT TO LET 
YOU USE FOR PROMOTION BECAUSE I 
AM GOING TO INVEST 10 GRAND IN 
YOUR BUSINESS.>> THERE YOU GO.
>> MAKING SOME NEWS.
>> ALL RIGHT, YEAH.
>> I LIKE THAT, GREAT ENERGY, I 
LOVE THAT. 
THANK YOU ALL, THANK YOU VERY 
MUCH.
>> BIG ROUND OF APPLAUSE FOR 
OUR STARTUPS PLEASE. 
GREAT WORK STARTUPS. 
GREAT JOB, YOU GUYS CAN GO 
AHEAD AND EXIT. 
THE JOB. 
>> WILL SMITH, WE ARE GETTING 
THE HOOK. 
LET'S GO. 
>> THANK YOU GUYS VERY MUCH. 
THANK YOU THANK YOU.
>> THANK YOU. 
THANK YOU VERY MUCH. 
THANK YOU SO MUCH.
>> THAT IS MY GIRL, THAT IS MY 
GIRL. 
I FEEL YOU, I FEEL YOU. 
>> I REALLY LIKE YOU AS WELL.>> 
YOU ARE COOL, YOU ARE GOAL.
>> OKAY, HE JUST CALLED ME HIS 
GIRL, SO I DIE. 
OKAY, WE HAVE GOT TO KEEP 
THINGS MOVING BECAUSE I WENT 
WAY OVER TIME. 
WITHOUT ANY FURTHER ADO, I 
WOULD LIKE YOU TO PLEASE GIVE A 
WARM WARM WELCOME TO OUR NEXT 
GUEST. 
GENERAL PARTNER CHRIS DIXON AND 
YOUR MODERATOR, JOSH 
CONSTANTINE. 
LET'S GO.
>> I WANTED TO START THIS PANEL 
WITH A CRYPTO CURRENCY JOKE. 
HERE IT IS. 
LIKE COIN. ONLY A FEW PEOPLE 
GOT THAT. 
IN HONOR OF OUR PREVIOUS GUEST, 
I WANTED TO MAKE ONE WILL SMITH 
JOKE. 
WHAT DOES WILL SMITH SAY WHEN 
HE ASKED FOR BIT COIN, BUT 
SOMEBODY PAYS HIM IN DOLLARS? 
OH NO, YOU DID NOT SHOOT THAT 
GREEN STUFF AT ME. 
OKAY, SO LESS OF A LAUGHING 
MATTER IS LIBRA, FACEBOOK'S 
CRYPTO CURRENCY THAT SOME 
PEOPLE ARE WORRIED IS GOING TO 
CRATER THE WORLD'S FINANCIAL 
SYSTEM AND THE FRENCH FINANCE 
MINISTER SAID WE CANNOT 
AUTHORIZE DEVELOPMENT OF LIBRA 
ON EUROPEAN SOIL, BUT YOU ARE A 
LIBRA ASSOCIATION MEMBER. 
SO DO YOU THINK THAT LIBRA IS 
ACTUALLY GOING TO LODGE IN THE 
NEXT YEAR OR TWO?>> YES, I DO. 
MAY BE STEPPING BACK, I SAY WE 
ARE VERY EXCITED ABOUT CRYPTO 
CURRENCY AND THE WAY WE VIEW IT 
IS IN THE CONTEXT OF THE 
HISTORY OF COMPUTING, SO IF YOU 
GO BACK TO THE HISTORY OF 
COMPUTING, EVERY 15 YEARS IS A 
NEW MAJOR COMPUTING CYCLE. 
MAINFRAME COMPUTERS, PCS, THE 
INTERNET, SMART PHONES. 
WE ARE IN A PERIOD NOW WHERE A 
WHOLE BUNCH OF INTERESTING NEW 
COMPUTING THAT FORMS ARE 
GETTING BILLED. 
FOR EXAMPLE, VIRTUAL REALITY, 
SELF DRIVING CARS, A BUNCH OF 
STUFF AND AI IS VERY EXCITING 
AND WE THINK BLOCK JAMS ALSO. 
ANY TYPE OF COMPUTING SYSTEM 
THAT HAS A LOT OF INTERESTING 
POSSIBILITIES. 
WHEN YOU CREATE A BLOCK, 
DIFFERENT POSSIBLE APPLICATIONS,
PEOPLE HAVE PROBABLY HEARD OF 
THAT COIN, THEY MAKE THOSE 
BLOCK CHAINS MAKE CERTAIN 
TECHNICAL TRADE-OFFS THAT MAKE 
THEM GOOD FOR SOME APPLICATIONS 
AND NOT FOR OTHER APPLICATIONS. 
WHAT LIBRA IS DOING, WHICH WE 
ARE EXCITED ABOUT IS THEY ARE 
DESIGNING A BLOCK FROM SCRATCH 
THAT IS BUILT TO OPTIMIZE 
PAYMENTS. 
AND WHAT DOES THAT MEAN? 
IT MEANS YOU NEED FOR EXAMPLE 
THE STABILITY OF THE CURRENCY, 
SO CURRENCY THAT, YOU KNOW, IS 
DENOMINATED IN SOMETHING LIKE 
DAUGHTERS. 
THEY ACTUALLY GET THE DOLLARS 
AND ALSO SOMETHING THAT HAS 
VERY HIGH FRUIT FOOT. 
AND WE THINK THEY HAVE DONE A 
GOOD JOB ON THE DESIGN OF THAT. 
THERE ARE ALL SORTS OF 
REGULATORY AND OTHER QUESTIONS. 
>> DO YOU THINK IT IS GOING TO 
LUNCH IN THE NEXT YEAR? 
>> I DO I DO, YEAH I THINK I 
DON'T KNOW IF IT WILL HAVE 
CHANGES MADE, IT IS GOING TO BE 
A DIALOGUE WITH REGULATORS AND 
PARTNERS AND VARIOUS OTHER 
STAKEHOLDERS. THAT IS EXACTLY 
WHAT THE DESIGN WILL BE. 
BUT LOOK, THIS IS, CRYPTO IN 
THE GLOBAL OF MITT. 
CHINA HAS SAID THAT BLOCK CHAIN 
IS A NATIONAL PRIORITY. 
IT IS HAPPENING, ALL OF THESE 
KINDS OF PROJECTS ARE HAPPENING 
ALL OVER THE WORLD. 
THE BENEFIT COULD BE IMMENSE. 
FOR EXAMPLE, THERE IS SOMETHING 
LIKE 2 BILLION PEOPLE WHO HAVE 
SMART PHONES TODAY, BUT DO NOT 
HAVE ACCESS TO THE MODERN 
BANKING SYSTEM, AS AN EXAMPLE. 
MANY OF THOSE PEOPLE WHAT'S UP. 
SO TO PROVIDE A PAYMENT SYSTEM, 
SORRY, I THINK I FOUND IS GOING 
OUT, TO PROVIDE A PAYMENT 
SYSTEM AND INCLUDE THOSE PEOPLE 
IN THE FINANCIAL SYSTEM WHILE 
ALSO PROVIDING A WAY FOR 
SOFTWARE DEVELOPERS AND 
ENTREPRENEURS TO BUILD 
APPLICATIONS ON TOP AND SERVE 
THOSE PEOPLE, IT IS A POWERFUL 
IDEA. 
IT IS EXCITING TO HAVE A 
COMPANY THE SIZE OF FACEBOOK 
SUPPORTING THAT. 
I HOPE THAT IT IS THE BEGINNING 
OF A PROCESS WHERE MORE LARGE 
TECH COMPANIES GET INTO THE 
SPACE. 
TO ME, AND I YOU ARE A FAN OF 
VR, LIKE I AM, FACEBOOK IS 
DOING A LOT OF INVESTMENT. 
I WOULD LOVE TO SEE MORE 
COMPANIES TO INVESTMENT. 
AT OUR FIRM, WE ARE PRO-
INNOVATION, PRO-ENTREPRENEURS. 
WE WANT TO SEE TWO NEW 
TECHNOLOGIES DEVELOPED. 
THE MORE PEOPLE GETTING 
INVOLVED, THE BETTER. 
IT IS AWESOME THAT FACEBOOK IS 
MAKING THE BIG INVESTMENT. 
I THINK IT WILL LAUNCH. 
THERE IS A DIALOGUE HAPPENING. 
IT IS COMPLICATED. 
THEY ARE CREATING AN 
ASSOCIATION THAT WE ARE PART 
OF, WHICH IS HAPPENING NOW AND 
THEN THAT ASSOCIATION WILL HAVE 
A DIALOGUE WITH REGULATORS AND 
WITH VARIOUS OTHER STAKEHOLDERS 
AND MAKE SURE THAT WHAT IS 
CREATED IS SOMETHING THAT 
BENEFITS ALL DIFFERENT 
CONSTITUENCIES. 
THAT MAY INVOLVE CHANGES TO THE 
PROJECT.>> WHAT CHANGES DO YOU 
THINK THE LIBRA ASSOCIATION 
WOULD BE FLEXIBLE WITH? 
WHAT COULD CHANGE THAT MIGHT 
HELP REGULATORS COME TO TERMS? 
>> ONE THING IS I THINK LIKE IF 
YOU LOOK AT HOW IT WAS 
RECEIVED, A LOT OF PEOPLE 
THOUGHT IT WAS, THEY WERE 
TRYING TO CREATE A NEW CURRENCY 
THAT WAS SORT OF A SUPER 
NATIONAL CURRENCY. I THINK IT 
IS MUCH BETTER TO THINK OF IT 
AS A PAYMENT SYSTEM. 
>> WHAT WOULD CHANGE TO MAKE 
PEOPLE NOT THINK THAT? 
>> FOR EXAMPLE, DENOMINATED THE 
CURRENCY IN U.S. DOLLARS. 
I AM GIVING A HYPOTHETICAL 
EXAMPLE. 
I DO NOT THINK THE INTENTION. 
MY UNDERSTANDING IS THE 
INTENTION WAS NEVER TO CREATE A 
NEW CURRENT THE. 
YOU KNOW, YOU SEE SOME OF THE 
VARIOUS COMMENTS AROUND IT. 
IT IS MUCH MORE FOCUSED ON THE 
PAYMENT RAILS, PROVIDING A 
PAYMENT SYSTEM THAT YOU KNOW, 
ONE LOWERS FEES, 2, INCLUDES 
THOSE 2 BILLION PEOPLE THAT ARE 
NOT CURRENTLY INCLUDED IN 
THREE, ALLOWS A PLATFORM 
DEVELOPERS CAN BUILD ON TOP OF 
THAT THE WAY THEY BUILD 
APPLICATIONS ON THE APP 
STORE.>> OKAY. 
SOAP MOST RECENTLY, WE HAVE 
HEARD THAT VISA AND MASTERCARD 
ARE CONSIDERING HOW TO PULL 
BACK FROM LIBRA ASSOCIATION 
BECAUSE THEY ARE NOT REALLY 
ENJOYING ALL OF THIS LEGAL 
SCRUTINY. 
WHAT DO YOU THINK ABOUT THAT? 
ARE THEY TRADERS OR JUST 
LACKING COURAGE?
>> I DON'T KNOW THE SPECIFICS. 
I THINK I WOULD SAY JUST 
GENERALLY, IT IS, YOU KNOW, 
WHEN YOU CREATE THESE NEW 
THINGS, THEY ARE, YOU KNOW, 
THERE IS A TENSION BETWEEN 
EXISTING COMPANIES THAT HAVE, 
YOU KNOW, HAVE SOME KIND OF 
STAKE IN THE STATUS QUO AND NEW 
TECHNOLOGIES THAT, YOU KNOW, I 
DON'T KNOW, IMAGINE IF YOU 
TRIED TO CREATE YOUTUBE BACK IN 
WHATEVER, 2005 OR SIX AND TRIED 
AT THE TIME TO WORK WITH, YOU 
KNOW, INCUMBENT MEDIA 
COMPANIES. 
THERE MAY HAVE BEEN CHALLENGES. 
WHAT I THINK TENDS TO HAPPEN 
OVER TIME IF YOU LOOK AT 
YOUTUBE NOW, LIKE OTHER MEDIA 
COMPANIES HAVE PRESENCE IN 
NETWORKS. 
SOMETIMES IT TAKES, YOU KNOW, 
FIRST TWITTER OR FACEBOOK OR 
ANY OF THESE THINGS. 
SOMETIMES IT FIRST REQUIRES 
HOLDING SOMETHING AND GETTING 
PEOPLE TO USE IT AND THEN TO 
REALLY GET THE BUY-IN OF THE 
LARGER INCUMBENT PLAYERS. 
CLEARLY LIKE THERE IS A BIG 
CONTORTION. 
IT IS, LOCATED. 
A LOT OF DIFFERENT INTEREST. 
THAT IS SOMETHING THAT NEEDS TO 
BE MANAGED. 
>> GIVEN ALL OF THE SCRUTINY 
AND ALL OF THE TOXIC BRAND THAT 
FACEBOOK HAS DEVELOPED, IS 
HOROWITZ SO COMFORTABLE 
CONNECTING ITS BRAND WITH 
FACEBOOK'S THROUGH THE LIBRA 
ASSOCIATION? 
>> IT IS IMPORTANT THING, WHICH 
IS I WROTE AN ARTICLE ABOUT 
THIS IF YOU ARE INTERESTED. 
THE PHRASE I LIKE TO USE IS NOT 
CHANGED, INSTEAD OF THE EURO, 
DO NOT BE ABLE TO BE EVIL. 
WHAT I MEAN IS THE WHOLE 
CONCEPT OF BLOCK CHAIN IS IT 
USES A GAME THEORETIC MECHANISM 
WHEREBY IT DOES NOT MATTER, 
LIKE WHAT THE CREATOR OF THE 
BLOCK CHAIN, THEIR INTENTIONS 
ARE OR IF THEY CHANGE THEIR 
INTENTIONS, IT DOESN'T MATTER 
BECAUSE IT IS BAKED INTO THE 
QUOTE WITH THE RULES OF THE 
KMART AND THE RULES ARE OPEN-
SOURCE AND AUDIBLE. 
I WOULD SAY REGARDLESS OF WHAT 
I THINK OF FACEBOOK, IT IS A 
SEPARATE QUESTION. 
AS LONG AS THE BLOCK CHAIN IS 
ARCHIVED IN THE CORRECT WAY, 
YOU DO NOT NEED TO KNOW. 
YOU DO NOT NEED TO TRUST THEIR 
INTENTIONS. 
THAT IS ONE OF THE INSIDE IS 
ABOUT THIS MOVEMENT BECAUSE I 
THINK OF THE LAST 20 YEARS, 
PEOPLE FEEL LIKE THEY MADE A 
DEAL, LIKE WHEN HE FIRST JOINED 
FACEBOOK OR TWITTER, WHETHER 
YOU WERE A USER OR A MEDIA 
COMPANY, YOU MADE A DEAL WITH 
THAT, AND IMPLICIT DEAL TOOK A 
REAL DEAL LIKE TERMS OF 
DEVISEE, BUT THIS IS HOW THE 
NETWORK OPERATES. 
IF YOU TALK TO A MEDIA COMPANY 
AND HOW THEY FEEL ABOUT THIS 
BOOK, THEY MAY FEEL LIKE AT 
FIRST FACEBOOK WAS VERY HELPFUL 
AND LATER ON, THE RULES 
CHANGED. 
SO ONE OF THE IMPORTANT 
FEATURES OF LOCK CHANGES THE 
RULES ARE BAKED IN FROM THE 
START. 
THEY ARE TRANSPARENT IN THE 
CANNOT CHANGE. 
THAT COIN WAS CREATED BY 
SOMEONE THAT NO ONE KNOWS. 
IT DOES NOT MATTER WHO THAT 
PERSON IS BECAUSE THE RULES ARE 
BAKED INTO THE NETWORK. 
THAT PERSON CAN CHANGE HIS OR 
HER MIND. 
THEY COULD CHANGE THEIR 
INTENTIONS. 
SO I WOULD JUST ARGUE THAT ONE 
OF THE KEY FEATURES HERE IS 
THAT YOU DO NOT NEED TO SORT OF 
UNDERSTAND OR EVEN CARE ABOUT 
THE MOTIVES BEHIND IT WORK 
>> THAT WORKS WHEN THERE ARE 
RULES WRITTEN BECAUSE THE RULES 
CANNOT CHANGE. 
BUT WE HAVE SEEN A LOT OF 
PROBLEMS STEM FROM WHEN THE 
RULES ARE NOT RED AND WE, WHAT 
HAPPENS IS MOST RECENTLY, THE 
SEC ONLY FIND THAT U.S. MAKER 
BLOCK ONE $24 MILLION FOR THEIR 
NOT QUITE LEGAL SECURITY SALE 
FROM ITS ICO THAT RAISED 4.1 
ALIEN DOLLARS. 
THAT IS A 0.5% FINE. 
DO YOU THINK THAT THAT IS FAIR 
AND IS THAT GOING TO EMBOLDEN 
BAD ACTORS? 
>> I DON'T KNOW THE DETAILS. 
THE WAY THESE THINGS WORK, IT 
COULD BE ONE OF MANY. 
IT COULD BE THE BEGINNING OF A 
PROCESS. 
I DON'T KNOW. 
WE ARE NOT INVOLVED. 
WE ARE NOT INVOLVED WITH THAT 
PROJECT. 
YOU KNOW, I WILL SAY THAT WE 
THINK, WE HAVE FROM THE START, 
THIS WHOLE ICO CRAZE IN 2017, 
WE NEVER PARTICIPATED. 
WHENEVER INVESTED IN ANY 
COMPANIES THAT DID THESE ICO'S. 
THERE ARE AN ACCREDITED 
INVESTOR SALES. 
WE BELIEVE THAT IT IS VERY 
IMPORTANT TO WORK WITH 
REGULATORS AND SO THE COMPANIES 
WE ARE INVOLVED WITH TAKE 
REGULATION VERY SERIOUSLY AND 
OTHER JURISDICTIONS ARE IN AND 
WE SPENT A LOT OF TIME ON IT. 
MY PARTNER IS IN AND WE HAVE A 
BUNCH OF PEOPLE AT THE FIRM WHO 
DO IT. 
I DO NOT KNOW ENOUGH ABOUT THE 
DETAILS. 
>> DO YOU THINK NO FINES OR 
VIOLATIONS ON LOTS OF MONEY 
RAISED MIGHT JUST BE BAD ACTORS 
LIKE WELL, SURE, IF THE RULES 
ARE NOT PERFECTLY CLEAR, I WILL 
BREAK THEM BECAUSE WHO KNOWS? 
WORST CASE SCENARIO, I GET A 
SLAP ON THE WRIST. 
>> ONE THING THAT WOULD BE NICE 
IF IT THE RULES WERE CLEAR. 
ONE OF THE FRUSTRATIONS WE HAVE 
NOW IS BASICALLY, WE HAVE ASKED 
FOR GUIDANCE AND LOOKED FOR 
MORE CLARITY ON THE RULES. 
SO SOME OF THESE, I THINK SOME 
OF THESE ISSUES ARE, LOOK, I AM 
SURE THERE ARE BAD ACTORS DOING 
SCAMS AND THINGS LIKE THIS, BUT 
I DO THINK SOME OF THESE 
SITUATIONS WERE SIMPLY THE LACK 
OF CLARITY IN THE RULES. 
SO YOU KNOW, I DON'T KNOW IF 
THIS IS ONE OF THOSE CASES, BUT
, YOU KNOW, I DO THINK THERE 
HAVE BEEN A NUMBER OF CASES 
WHERE PEOPLE THOUGHT THEY WERE 
COMPLYING WITH REGULATIONS AND 
JUST, YOU KNOW, DID NOT 
UNDERSTAND BECAUSE NONE OF THAT 
HAS BEEN CLARIFIED. 
>> THINKING OF THAT, THERE IS 
SO MUCH CRYPTO CURRENCY SNAKE 
OIL OUT THERE AND OBVIOUSLY, 
THERE ARE PLENTY OF PROJECTS 
WHERE IT IS JUST OBVIOUS IT IS 
NOT GOING TO WORK. 
THERE IS A LOT WRONG WITH IT, 
BUT WHEN YOU SEE A LEGITIMATE 
PRODUCT THAT OTHERWISE SEEMS 
LIKE IT HAS REAL POTENTIAL, 
WHAT ARE THOSE FINAL RED FLAGS 
THAT YOU ARE STILL SEEING IN 
THIS DAY AND AGE THAT DISSUADE 
YOU FROM WANTING TO INVEST OR 
GET INVOLVED?>> I KIND OF FEEL 
LIKE CRYPTO TODAY IS A LITTLE 
BIT LIKE THE EARLY INTERNET AND 
THAT THERE WAS A SORT OF GOLD 
RUSH, RIGHT? 
AND IF YOU GO BACK TO THE 90s, 
THERE WERE A LOT OF BAD 
COMPANIES CREATED, A LOT OF 
IPOS AND OTHER THINGS, THINK 
THAT PROBABLY SHOULD NEVER HAVE 
BEEN IPOS. 
BUT THERE WAS ALSO GOOGLE, YOU 
KNOW, AMAZON, PAYPAL, YAHOO AND 
THAT IS OUR VIEW OF THE CURRENT 
CRYPTO WORLD IS THAT THERE'S A 
LOT OF THINGS WHICH WE DO NOT 
AGREE WITH, MAYBE THEY SHOULD 
NOT EXIST, BUT THERE'S ALSO A 
LOT OF REALLY HIGH QUALITY 
UNDER BENOIT AND TECHNOLOGIES. 
WE BELIEVE THERE WILL BE ICONIC 
NEW COMPANIES THAT ARE BUILT.
>> IF I AM A COMPANY TRYING TO 
BE LIKE I WANT TO BE A LEGIT 
COMPANY, I DO NOT WANT PEOPLE 
TO SAY LIKE OH, I WENT TO BACK 
AWAY, WHAT ARE SOME RED BAGS 
THAT THEY CAN GET RID OF OR FIX 
TWO 
>> I THINK ONE OF, WHAT WE 
BELIEVE AS ONE OF THE CORE 
THINGS IS A LONG-TERM FOCUS 
WHERE THE EMPLOYEES, THE 
FOUNDERS, THE INVESTORS AND THE 
USERS ARE ALL ALIGNED AROUND A 
SPECIFIC GOAL. 
FOR EXAMPLE, THERE ARE ALL 
SORTS OF BEST PRACTICES WITH 
TRADIONAL STARTUPS THAT, YOU 
KNOW, ABOUT HOW TO ISSUE EQUITY 
AND HOW TO, YOU KNOW, TREAT 
YOUR USERS IN ALL SORTS OF 
THINGS. 
TO TAKE A LONG-TERM WIN-WIN 
PERSPECTIVE ON THIS. SOME OF 
THAT HAS BEEN LOST IN THE 
CRYPTO WORLD. 
WE TRY TO ONLY WORK WITH 
ENTREPRENEURS WHO HAD THAT 
ATTITUDE. 
WE HAVE A VENTURE FUND THAT 
WILL INVEST. 
IT IS A 10+ YEAR VENTURE FUND, 
A LONG-TERM PERSPECTIVE. 
WE DO NOT TRADE THINGS. 
WE BUY, WE INVEST AND WE WORK 
AS PARTNERS WITH THE FOUNDERS 
WHAT WE DO FIND IS A LOT OF 
PEOPLE DON'T KNOW, ESPECIALLY 
IN A NEW AREA, THEY DON'T KNOW 
WHAT THE BEST PRACTICES ARE. 
FOR THAT REASON, I WANTED TO 
MENTION WE ARE GOING TO RUN A 
STARTUP SCHOOL IN FEBRUARY AND 
MARCH FOR CRYPTO SPECIFIC 
STARTUPS. THAT WILL TAKE WHAT 
WE HAVE LEARNED OVER THE LAST 
SEVEN YEARS AS BEST PRACTICES 
IN THE CATEGORY THAT I THINK 
HAVE NOT FULLY PROPAGATED OUT. 
ABLE TO NOT FULLY UNDERSTAND 
AND TRY TO SHARE THEM WITH 
PEOPLE THAT COME TO THIS CLASS 
AND THEN WE WILL PUT EVERYTHING 
ON YOUTUBE AND EVERY THING 
ELSE. 
THIS IS JUST AN EDUCATIONAL 
THING. 
WE ARE NOT TAKING EQUITY OR 
CHARGING. 
WE FEEL LIKE WE ARE NOW FAR 
ENOUGH INTO THIS CRYPTO 
MOVEMENT THAT THERE ARE BEST 
PRACTICES, BUT PEOPLE DO NOT 
UNDERSTAND THAT. 
IT REMINDS ME OF, I HAVE BEEN 
INVOLVED WITH STARTUPS FOR 15 
YEARS. 
I USED TO BE AN ENTREPRENEUR 
AND BACK IN THE 2000, THERE WAS 
ALL SORTS OF LIKE IT, HOW DO 
YOU BUILD PRODUCT, HOW DO YOU 
RAISE MONEY AND THEN THERE WERE 
A BUNCH OF PEOPLE AND BLOGGERS, 
A BUNCH OF PEOPLE WHO DID A 
GREAT PUBLIC SERVICE, THEY TOOK 
ALL THESE PRACTICES AND THEY 
PROMULGATED THEM AND SO WE ARE 
TRYING TO DO OUR PART IN THE 
CRYPTO WORLD AND SAY HERE IS 
WHAT WE HAVE LEARNED, HERE IS 
THE BEST WAY TO DO 
ORGANIZATIONAL BUILDING. 
ABOUT GOOD MARKET, BUT 
TECHNOLOGY AND HERE ARE THE 
BEST PRACTICES WE HAVE LEARNED 
AND YOU KNOW, AND SHARE THEM 
WITH THE WORLD. 
>> IS THE HOPE THAT THESE 
COMPANIES WOULD THEN RAISE MONEY
? 
>> POTENTIALLY. 
THEY DON'T HAVE TO. 
WE HOPE THAT THEY LIKE US AND 
THEY WOULD COME TALK TO US IF 
THEY DID THAT. 
BUT YOU KNOW, GENERALLY THE WAY 
WE LOOK AT THESE THINGS IS IF 
WE, YOU KNOW, WE ARE GOOD 
COMMUNITY MEMBERS AND YOU KNOW, 
PROVIDE VALUE TO THE COMMUNITY 
THAT PEOPLE WILL, YOU KNOW, SEE 
THAT AND WANT TO WORK WITH US. 
THERE IS NO REQUIREMENT OR 
ANYTHING.>> YOU SPOKE ABOUT 
TRYING TO GET THERE TO BE 
BETTER MORE LEGITIMATE RULES, 
WERE CLEAR RULES SO PEOPLE KNOW 
WHAT TO DO AND WHAT NOT TO DO. 
IN MAY, YOU GUYS POSTED 
OFFICIALS FROM THE TREASURY 
DEPARTMENT, THE SEC AND OTHER 
REGULATORS ALONG WITH YOUR 
PORTFOLIO COMPANIES. 
IT IS KIND OF A CLOSED-DOOR 
MEETING THAT PEOPLE WERE 
SURPRISED ABOUT BECAUSE IT IS 
NOT USUAL FOR ALL OF THOSE 
REGULATORS TO GET TOGETHER WITH 
A PRIVATE COMPANY LIKE THAT. 
WHAT WAS THE MESSAGE THAT YOU 
WERE TRYING TO CONVEY TO THEM? 
>> WE ARE TRYING TO CREATE A 
DIALOGUE.>> ABOUT WHAT TWO 
>> OVER LIKE WHAT IS THE BEST 
WAY TO BALANCE INNOVATION AND 
REGULATORY CONCERNS? 
AND TO, I THINK WHAT WE SAW IS 
WE ENGAGE WITH BOTH 
CONSTITUENCIES AND WHAT WE SAW 
WAS A LOT OF MISUNDERSTANDINGS. 
SO BY THE WAY, WE PUT 
EVERYTHING ON. 
WE VIDEOTAPED THE WHOLE THING 
AND PUT IT ON THE INTERNET. SO 
IT IS PRETTY OPEN. 
IT WAS A WIDELY ATTENDED 
GATHERING. 
A REGULATORY MEETING. 
IT WAS A BUNCH OF PEOPLE, 
INCLUDING PEOPLE OUTSIDE OF OUR 
FIRM. 
THE IDEA WAS TO JUST SORT OF 
START A DIALOGUE SO THAT 
PEOPLE, YOU KNOW, LIKE LOOK, IF 
ALL YOU DO IS READ THE NEWS 
MEDIA REPORTS ABOUT CRYPTO, YOU 
SEE SCAMS AND ASK AND IT JUST 
LOOKS LIKE THIS BIG, YOU KNOW, 
MESSY THING WITH ALL THESE 
SKIMMERS AND THINGS.>> IT IS A 
BIG MESSY THING. 
>> THERE IS MESSY STUFF AS 
THERE WAS IN THE EARLY 
INTERNET. 
I TALKED ABOUT THIS A LOT. 
THERE WAS A LOT OF, YOU KNOW, 
CRAZY STUFF HAPPENING BACK IN 
THE 90s. 
YOU SAW FIRST HAND, SO THAT 
CERTAINLY DOES EXIST, BUT WE 
THINK THERE IS A LOT OF VALUE 
IN THE TECHNOLOGY AND WE THINK, 
I THINK IT IS IMPORTANT, I 
PERSONALLY BELIEVE IT IS AN 
IMPORTANT NATIONAL PRIORITY TO 
MAKE SURE THAT WE ARE THE LEADER
. 
>> WHAT WAS THEIR BIGGEST 
PUSHBACK ABOUT THAT, THING LIKE 
YEAH, WE GET YOU WANT 
INNOVATION, BUT HERE IS WHY THE 
REGULATION, THE SAFETY IS MORE 
IMPORTANT.>> SO I THINK THAT IS 
A GREAT QUESTION. 
PARTLY IT IS JUST AN 
UNDERSTANDING LIKE WHY ARE YOU 
DOING THIS MONKEY SO I GAVE A 
TALK, IT IS ONLINE. 
IT IS ON A WEBSITE. 
I GAVE A TALK ABOUT WHY ARE WE 
EXCITED ABOUT THIS, JUST, YOU 
KNOW, WE HAD A BUNCH OF 
ENTREPRENEURS EXPLAIN WHAT THEY 
ARE DOING AND SEE THERE IS REAL 
VALUE POTENTIALLY IN 
TECHNOLOGY. 
SO THAT IS ONE LAYER SORT OF 
CREATING A SHARED 
UNDERSTANDING. 
THERE IS A LOT OF LEGAL 
QUESTIONS. 
SO IF YOU LOOK AT THE WAY THAT 
THE REGULATORY FRAMEWORK WORKS 
AROUND SECURITIES AND 
COMMODITIES, YOU KNOW, 70 YEARS 
OF KNOWLEDGE TO MAKE RULES. 
THEY HAVE SEEN VARIOUS ERAS AND 
ALL SORTS OF STUFF. 
SO THERE IS JUST A LOT OF 
TECHNICAL QUESTIONS LIKE WHAT 
IS THE BEST PRACTICE, WHAT 
SHOULD, YOU KNOW, BECAUSE WE 
BELIEVE THE RIGHT BUSINESS 
MODEL IS IN MANY CASES TO HAVE 
CERTAIN POINTS AND TOKENS WITH 
THE PROJECTS AND TO GIVE THOSE 
TWO EMPLOYEES TO HAVE, YOU 
KNOW, SO FOR EXAMPLE OUR 
STANDARD THING IS WE WILL 
INVEST, WE WILL BY TOKENS. 
THEY WILL USE THAT MONEY TO 
FUND THE COMPANY OPERATIONS, 
THE EMPLOYEES WILL BE 
INCENTIVIZED THAT WAY, JUST 
LIKE STOCK OPTIONS. 
AT SOME POINT TIME CAMINO, THE 
RIGHT STUFF IN PLACE IN THE 
RIGHT LOOK UP RULES AND THINGS 
LIKE THAT, THERE MIGHT BE 
OPPORTUNITY FOR OTHER PEOPLE TO 
PARTICIPATE. 
THERE NEED TO BE ALL SORTS OF 
SAFEGUARDS. 
YOU CANNOT HAVE WHAT ARE 
EFFECTIVELY UNREGULATED 
SECURITY OFFERINGS. 
SO YOU KNOW, SO I THINK THERE 
IS A SHARED UNDERSTANDING 
DIMENSION TO THAT. 
ALSO, START TO BEGIN TO WORK 
OUT SOME OF THESE WERE 
TECHNICAL QUESTIONS LIKE WHAT 
IS THE RIGHT REGULATORY 
FRAMEWORK.>> ONE OF YOUR BIG 
INVESTMENT PIECES FOLLOWING 
NERD ENERGY, THE PLACES WHERE 
ENGINEERS ARE REALLY KICKING 
OUT AND OFTENTIMES BUILDING 
SOMETHING THAT SUDDENLY BECOMES 
MAINSTREAM. 
WHAT AREAS ARE YOU SEEING 
LOSING NERD ENERGY IN WHICH 
AREAS ARE GAINING THAT ENERGY? 
>> BY THE WAY, I SAY THAT. 
USE THE WORD NERD VERY 
AFFECTIONATELY. 
>> ME TO. 
>> WHAT I MEAN BY THAT IS YOU 
KNOW, LOOK AT THE HISTORY OF 
SILICON VALLEY. 
>> WHICH ONES ARE GAINING 
ENERGY? 
>> TO ME, BY FAR THE BIGGEST 
NERD ENERGY THING IS CRYPTO. 
THAT IS WHY I AM ALL IN ON THIS.
THERE IS A TON OF SMART PEOPLE 
AND IT IS MISUNDERSTOOD AND YOU 
KNOW, IT SKEWS ALL THE SMART 
TECHNICAL PEOPLE ARE IN IT. 
THEY ARE DEEPLY PASSIONATE AND 
THEY, YOU KNOW, LIKE IT IS OFF 
THE CHARTS. 
I THINK LIKE VR I KNOW I THINK 
THE OCULIST QUEST IS A BREAKOUT 
PRODUCT. 
I LOVE LIKE IT, YOU KNOW, THE 
OCULIST QUEST TO READ IS ONE OF 
MY FAVORITE THINGS TO READ 
EVERY DAY. 
I THINK THAT IS A REALLY 
INTERESTING AREA. 
>> ANYWAY MY NOT THINK THAT? 
CRYPTO MBR HAVE BEEN AROUND FOR 
A MINUTE.
>> I THINK SOME OF THESE 
THINGS, SOME OF THEM LIKE A I 
USED TO BE ONE. 
SHE LEARNING TYPICALLY, BUT THAT
HAS TRANSITIONED INTO THE 
MAINSTREAM. 
I AM STILL VERY INTO HARDWARE. 
I KNOW HARDWARE IS OUT OF 
FASHION RIGHT NOW, OR I THINK, 
I THINK YOU KNOW, I DON'T KNOW. 
I PERSONALLY SPEND MY WEEKENDS, 
YOU KNOW, WITH 3-D PRINTERS AND 
I THINK I LOVE ALL THAT. I 
THINK IT IS VERY EXCITING. 
I THINK THAT IS SORT OF NOT, 
YOU KNOW, IN RIGHT NOW, I 
GUESS. 
>> JUST TO RECAP SOME OF THE 
INTERESTING POINTS. 
CHRIS DOES THINK LIBRA WILL 
LAUNCH IN THE NEXT FEW YEARS. 
ONE OPTION MIGHT BE CHANGING 
FROM LIBRA TO U.S. DOLLARS TO 
MAKE REGULATORS A LITTLE BIT 
MORE COMFORTABLE WITH IT AND 
OBVIOUSLY, THERE IS GOING TO BE 
BIG COMPANIES THAT HAVE A STAKE 
IN THE STATUS QUO THAT MIGHT BE 
INTERESTED IN PULLING BACK 
BECAUSE THEY DO NOT NEED IT TO 
SUCCEED. 
AFTER THIS WHOLE GOLD RUSH, IF 
WE CAN FOCUS MORE ON THE LONG 
TERM AND GET EVERYONE ALIGNED 
FROM THE INVESTORS TO THE 
EMPLOYEES TO THE USERS WITH THE 
RIGHT INCENTIVES, CRYPTO MIGHT 
BE ABLE TO LAST A LITTLE BIT 
LONGER. 
WE WILL NEED STRONGER RULES AND 
TO ANSWER ALL THE TECHNICAL 
QUESTIONS OF REGULATORS, BUT IF 
YOU ARE LOOKING FOR THE NEXT 
BIG AREA, YOU KNOW, AUGMENTED 
REALITY, VIRTUAL REALITY ARE 
STILL IN, BUT THERE IS PLENTY 
TO BUILDING CRYPTO CURRENCY. 
I HOPE YOU -- 
>> IF YOU ARE INTERESTED IN THE 
CRYPTO SCHOOL, WE HAVE A PLACE 
WHERE YOU CAN PUT IN YOUR EMAIL 
ADDRESS AND WE WILL SEND YOU 
MORE INFORMATION. 
>> THANKS FOR WATCHING. 
>> THANK YOU.>> THANK YOU.
>> UP NEXT WE HAVE A SPECIAL 
ANNOUNCEMENT. 
PLEASE WELCOME TO THE STAGE 
KATE CLARK. 
>> WELCOME. 
WE ARE HAPPY TO HAVE YOU. 
I KNOW YOU HAVE SOME NEWS WENT 
TO GET INTO. 
FIRST THINGS FIRST, TELL 
EVERYONE WHAT BRACTS IS. 
>> THANKS FOR HAVING ME. 
MY NAME IS HENRIQUE. 
I AM A COFOUNDER  OF BREX.  
WE BUILD FINANCIAL SERVICES TO 
HELP AMBITIOUS COMPANIES GROW. 
MY COFOUNDER PEDRO AND I 
STARTED THIS BACK IN MARCH 2017.
SINCE THEN, WE LAUNCHED OUR 
FIRST PRODUCT, WHICH WAS FOR 
STARTERS. 
THEM AND KEPT LAUNCHING 
PRODUCTS THAT WERE TAILORED TO 
OUR CUSTOMERS, SUCH AS THE e-
COMMERCE. 
SINCE THE BEGINNING, WE KNEW 
THAT BREX WAS NOT ONLY A 
CORPORATE CARD COMPANY. 
>> WHAT IS THE LONG-TERM 
VISION? 
>> WE FOCUS ON ONE PROBLEM, 
WHICH IS  THE MONEY. 
I AM FROM BRAZIL AND WE USE THE 
SAY THAT NO MATTER HOW 
DEVELOPED COUNTRY, BASED ON HOW 
FAST YOU COULD DO THREE THINGS, 
ONE IS GET AN OFFICE, SET UP 
INTERNET AND THREE IS OPEN A 
BANKING ACCOUNT. 
WHEN WE MOVED HERE TO THE U.S., 
GETTING AN OFFICE WITH INTERNET 
WAS SIMPLE, BUT OPENING A BANK 
ACCOUNT TOOK WEEKS. 
EVEN IF WE GOT IT, WE HAD SO 
MANY ISSUES WITH IT. 
IT SEEMS LIKE THE INTERFACE WAS 
BUILT IN THE 90s. 
CHARGED US SO MUCH MONEY FOR 
WIRE TRANSFERS AND IT SEEMED 
LIKE THERE WAS MULTIPLE SYSTEMS 
BETWEEN WIRES THAT SEEM TO NOT 
INTEGRATE WITH ONE ANOTHER. 
HAVE ANY OF YOU ACTUALLY HAD A 
POSITIVE EXPERIENCE WITH YOUR 
BUSINESS BANK ACCOUNT? 
IT HAS BEEN A WHILE SINCE BANKS 
ACTUALLY WORKED FOR BUSINESSES. 
SO THAT IS WHY WE BUILD 
SOMETHING BETTER. 
>> OPENING A BANK ACCOUNT 
SUCKS. 
DO YOU HAVE A SOLUTION FOR 
THOSE OF US OPENING STARTED 
BANK ACCOUNTS? 
>> WE ARE ANNOUNCING BREX CASH. 
WE FOCUS ON  TWO MAIN PROBLEMS. 
THE FIRST ONE IS YOUR PROCESS 
FOR MOVING MONEY IS COMPLEX AND 
SLOW. 
WITH BREX CASH, WE MADE IT FAST 
AND EASY. 
IN UNDER ONE MINUTE, YOU CAN 
SEND WIRES , WHICH IS 
DRAMATICALLY FASTER THAN ANY 
OTHER BANK. 
THEN, YOU CAN SEE THOSE SAME 
PAYMENTS IN ONE SINGLE 
DASHBOARD. 
NO MATTER IF YOU ARE PAYING 
THROUGH CARD, WIRES, CHECKS, 
AND ONE SINGLE PLACE, YOU CAN 
CONTROL EVERYTHING YOU ARE 
PAYING. 
THE SECOND PROBLEM WE ARE 
SOLVING IS FINANCIAL SERVICES 
ARE VERY EXPENSIVE. 
THE AVERAGE COST OF THE WIRE IN 
THE U.S. IS $23. 
WITH BREX CASH, WE MADE IT 
THREE. 
NOT ONLY DID WE MAKE IT THREE, 
WE REWARD YOU FOR MAKING THOSE 
PAYMENTS.  
SO YOU EARN POINTS FOR EVERY 
SINGLE PAYMENT THAT YOU MAKE. 
TRADITIONAL BANKS, THE USUALLY 
SEPARATE IS BETWEEN CHECKING 
AND SAVINGS ACCOUNT, SO YOU MUST
INTEREST IN YOUR MONEY AS A 
WHOLE. 
THE AVERAGE INTEREST RATE FOR A 
SAVINGS ACCOUNT IN THE U.S. IS 
0.1%. 
WITH BREX CASH, WE SUBDIVIDED 
INTO AN ACCOUNT THAT YOU EARN 
1.6%  OF ALL YOUR MONEY ALL THE 
TIME. 
SO WITH BREX CASH, IT IS LIKE 
THIS MODERN INTERFACE THAT  
CHARGE YOU KNOW FEES TO PAY AND 
WE HAVE AN INDUSTRY LEADING YOU.
>> CAN YOU SHOW US WHAT IT 
LOOKS LIKE?>> OF COURSE. 
THIS IS THE DASHBOARD. 
VERY EASILY, YOU CAN ADD FUNDS 
FROM OTHER BANK ACCOUNTS.& HEY 
YOU ARE TRANSFERRING TO YOUR 
BREX CASH ACCOUNT. 
LET'S SAY $1500.  
AND THEN YOU JUST REVIEW IT AND 
MAKE SURE EVERYTHING IS OKAY 
AND BOOM, DONE. 
EVERYTHING IS NOW AVAILABLE. 
YOU CAN USE THIS IMMEDIATELY. 
MONEY IS VERY EASY. 
YOU TYPE YOU WANT TO SEND MONEY 
TO, LET'S SAY GENESIS LABS. 
WE CHOOSE BETWEEN WIRES AND ACH 
AND IF IT IS ALREADY REFILLED 
FOR YOU, LET'S SAY WE WANT TO 
SEND THE SAME $1500 AND THEN 
YOU JUST REVIEW EVERYTHING, 
MAKE SURE EVERYTHING IS OKAY AND
BOOM, IT IS DONE. 
SUPER SIMPLE, SUPERFAST. 
>> YOU GUYS CAN ALL READ ABOUT 
BREX CASH ON TECH CRUNCH.COM 
RIGHT NOW, BUT WE ARE OUT OF 
TIME, SO  I JOINING US. 
>> THANK YOU SO MUCH.
>> OKAY, QUICKLY BECAUSE WE ARE 
BEHIND, ON THE EXTRA CRUNCH 
STAGE, IF YOU'RE INTERESTED IN 
GETTING INCOME YOU SHOULD CHECK 
THIS OUT, HOW TO GET INTO WHY 
COMMENTATOR WITH CONTINUITY. NOW
, WE ARE GOING TO BE TALKING TO 
SLACK, SO PLEASE WELCOME TO THE 
STAGE THE COFOUNDER AND CHIEF 
TECHNOLOGY OFFICER AT SLACK CAL 
HENDERSON AND GENERAL PARTNER 
AT SPARK CAPITAL MEGAN QUINN AS 
WELL AS YOUR MODERATOR, KATE 
CLARK. 
WARM WELCOME PLEASE. 
>> IT HAS BEEN A YEAR FOR 
SLACK, PROBABLY THE MOST 
IMPORTANT YEAR IN THE COMPANY'S 
HISTORY, SO I WANT TO TALK 
ABOUT THE DIRECT LISTING. 
I WANT TO TALK EVERYTHING THAT 
HAPPENED THIS YEAR. 
I THINK WE SHOULD START 
REWINDING A LITTLE BIT AND TALK 
FIRST ABOUT GLITCH, THE GAME 
THAT SLACK BEGAN AS, OR TINY 
SPECK. 
CAN YOU JUST TELL US THE MOMENT 
YOU REALIZED THAT GLITCH WAS 
NOT GOING TO WORK TWO 
>> SO WE STARTED THE COMPANY TO 
WORK ON THIS VIDEOGAME AND WE 
SPENT FOUR YEARS ON IT. 
I THINK REALLY IN RETROSPECT, 
THE LAST YEAR WE KNEW THAT IT 
WAS NOT WORKING OUT. 
I THINK THAT WAS HARD TO ADMIT 
TO OURSELVES, THE THING WE 
WANTED TO BUILD WAS NOT GOING 
TO WORK AND IT WAS ALSO THE 
CURSE OF NOT BEING SO 
UNSUCCESSFUL BUT IT WAS 
OBVIOUSLY A FAILURE. 
WE SAT ON THE FENCE FOR TOO 
LONG. 
THE NEXT THING WE DO IS GOING 
TO REALLY, YOU KNOW, MOVE THE 
NEEDLE AND THEN WE WILL BE 
SUCCESSFUL. 
I THINK WE WERE A LONG TIME 
COMING TO THE REALIZATION THAT 
IT WAS NOT GOING TO WORK OUT 
AND MAKE THAT DIFFICULT 
DECISION TO STOP DOING IT AND 
TO WIND THE COMPANY AND THE 
PRODUCT DOWN. 
THAT WAS A TOUGH CHOICE. 
THAT WAS A REALLY DIFFICULT 
TIME FOR BOTH FROM A REALIZING 
THAT WHAT WE WANTED STEVE WAS 
NOT GOING TO WORK AND ALSO 
HAVING TO LAYOFF A WHOLE BUNCH 
OF PEOPLE THAT WE HAD CONVINCED 
TO COME WORK AT OUR STARTUP. 
SO IT WAS A HARROWING 
EXPERIENCE. 
>> THERE WAS A BIG MOMENT FOR 
YOU? 
>> NOT REALLY. 
YOU KNOW, WE HAVE BEEN TALKING 
ABOUT FOR SOME TIME. 
IT WAS NOT EVEN A DECLINE, JUST 
A WE NEVER MANAGED TO GET WHAT 
WE NEEDED. 
AND WE WOULD HAVE THIS 
CONVERSATION PERIODICALLY, 
SHOULD BE CONTINUED, SHOULD WE 
DO THE NEXT THING, WHAT WOULD 
TURNING THE CORNER LOOK LIKE? 
AND IT WAS MUCH MORE. 
WE REALIZED WE HAD QUITE A FEW 
MONTHS OF RUNWAY LEFT BEFORE WE 
WOULD HAVE TO MAKE THE DECISION 
TO RAISE CAPITAL OR NOT. 
WE DID NOT WANT TO HIT THE END 
OF OUR RUNWAY.
>> SO MEGAN, YOU HAVE BEEN AN 
INVESTOR FOR YEARS NOW AND HE 
FIRST CONNECTED WITH THE 
COMPANY IN 2013 VIA DM WITH 
STEWART BUTTERFIELD WHO IS THE 
CEO, CAN YOU TELL US WHAT THAT 
MESSAGE SAID?
>> YES. 
I FIRST CONNECTED WITH STEWART 
AT THE BEGINNING OF 2013. 
I WAS ABOUT SIX MONTHS INTO MY 
ROLE AS A PARTNER AT PERKINS, 
BUT I HAD PREVIOUSLY BEEN THE 
PRODUCT HAD. 
I THINK OUT OF THE BLUE HE SENT 
ME A DM THAT SAID WANT A JOB? I 
DID NOT TAKE HIM UP ON IT, 
OBVIOUSLY, WHICH WAS IN 
RETROSPECT MAYBE A MISTAKE. 
BUT I DID GET TOGETHER WITH HIM 
TO LEARN MORE ABOUT THE PRODUCT 
AND BECAME A BETA TESTER THEN 
AT THE BEGINNING OF 2013 AND AS 
I HAVE MENTIONED TO YOU, IF 
ANYONE HERE, YOU CAN UNDERSTAND 
WHY SLACK IS IN SINGLE PLAYER 
MODE IS NOT THE MOST THRILLING 
OF PRODUCTS. 
IT IS LIKE SHUTTING THEM INTO 
THE VOID. 
I WAS REALLY EXCITED ABOUT THAT.
I CONTINUED TO STAY IN TOUCH 
WITH STEWART FOR A NUMBER OF 
YEARS. 
>> WHAT DID HE SAY TO YOU AT 
THAT MEETING? 
WHAT WAS IT? 
SIX YEARS AGO? 
>> HE WAS TALKING ABOUT HIS 
IDEA AND PLANS FOR SLACK AND 
HOW IT CAME TO BE. 
IT WAS A TOOL THAT THE TEAM HAD 
BEEN USING WHILE BUILDING 
GLITCH AND HE WAS NOT AN 
ENTERPRISE SASS GUY. BUT HE WAS 
A PRODUCT PERSONA. 
HE REALLY UNDERSTOOD AND 
EMPATHIZED WITH PEOPLE WHO IN 
THE WORKPLACE WERE LOOKING FOR 
NEW WAYS TO COMMUNICATE AND YOU 
KNOW, HAD FOUND SOMETHING THAT 
WORKED FOR CAL AND HIM AND THE 
TEAM AND WERE EXCITED TO GET 
NON-GLITCH FOLKS ON IT. 
YOU CAN CORRECT ME, THERE WAS 
LIKE 30 BETA CUSTOMERS AT THAT 
POINT BEFORE THEY ENDED UP 
LAUNCHING OUT OF BETA ON 
VALENTINE'S DAY. 
>> YEAH. 
BECAUSE IT IS NOT A PRODUCT 
THAT ONE PERSON COULD USE BY 
THEMSELVES, IT WAS A REAL 
UPHILL BATTLE GETTING THE FIRST 
FEW TEST, SO IT WAS NOT MISSING 
SOMEBODY, IT WAS CONVINCING 
SOMEBODY TO CONVINCE THEIR 
TEAM, SO WE WENT AROUND FRIENDS 
COMPANIES IN SAN FRANCISCO AND 
LIKE SPENT TIME TRYING TO 
CONVINCE PEOPLE, LIKE THREE OR 
FOUR MEETINGS OF GOING TO SOME 
AT HIS OFFICE AND BEING LIKE 
PLEASE USE OUR PRODUCTS. 
BUT I MEAN, THOSE IN INITIAL 
USERS, THEY WERE HUGE IN THE 
DEVELOPMENT OF THE PRODUCT. 
US UNDERSTANDING WHAT IT WAS WE 
NEEDED TO BUILD, WE HAD A CLEAR 
VISION OF THE KIND OF PRODUCT 
WE WANTED TO CREATE AND IT 
WORKED REALLY WELL FOR US AS A 
TEAM, BUT GETTING IT TO THE 
HANDS OF OTHER PEOPLE AND 
WATCHING THEM WORK IMMEDIATELY, 
YOU KNOW, BUT A WHOLE BUNCH OF 
THINGS TO LIKE ABOUT THE DESIGN 
OF THE PRODUCT THAT WE WOULD 
NEED TO EVOLVE. 
WE SPENT MUCH OF 2013 AND THAT 
ITERATION PHASE OF IT WORKS FOR 
US, LET'S MAKE IT WORK FOR 
OTHER TEAMS AS WELL. 
EVEN AT ANOTHER TIME, THERE 
WERE TEAMS THAT WERE JUST LIKE 
US. 
IT WAS A SMALL SOFTWARE COMPANY 
BASED IN SAN FRANCISCO, THEY 
WERE VERY EARLY ADOPTERS OF 
TECHNOLOGY, BUT STILL LIKE 
FINDING THAT PRODUCT MARKET IT 
WAS WHAT WE SPENT MOST OF THE 
FIRST YEAR DOING. 
>> IN JUNE, YOU HAD COMPLETED A 
DIRECT LISTING. 
HIGHLY ANTICIPATED TONS OF 
HEADLINES, IT WAS ONLY THE 
SECOND OF ITS KIND FOLLOWING 
SPOT IF I, WHICH DID IT A YEAR 
PRIOR. 
WHICH ONE OF YOU GUYS WANTS TO 
TAKE THE DIFFICULT TASK OF 
EXPLAINING WHAT A DIRECT 
LISTENING IS? 
>> I AM HAPPY TO TAKE THAT ONE. 
AS A COMPANY, WE WANTED TO 
BECOME A PUBLIC COMPANY. 
THERE ARE A LOT OF ADVANTAGES 
TO US BEING A PUBLIC COMPANY AND
THE RIGOR AND SCRUTINY THAT 
COMES ALONG WITH THAT. 
BUT WE DID NOT NEED TO RAISE 
CAPITAL. 
THE USUAL PROCESS OF THE IPO IS 
TAKING ON ADDITIONAL DILUTION 
TO SELL NEW SHARES TO RAISE 
CAPITAL FOR THE BUSINESS. 
WE ALREADY HAD ENOUGH CAPITAL. 
WE DID NOT NEED TO RAISE. SO IT 
IS MUCH OF THE SAME PROCESS AND 
YOU WORK WITH THE SAME BANKS 
AND END UP WITH THE SAME OUTCOME
, BUT WE DID NOT RAISE CAPITAL 
AND WE WERE ABLE TO OFFER 
LIQUIDITY TO OUR EMPLOYEES AND 
SHAREHOLDERS MUCH SOONER AS 
WELL. 
SO THERE IS A MARKER PERIOD 
AROUND IT. 
>> HAS BEEN A LOT OF TALK ABOUT 
DIRECT LISTINGS ESPECIALLY IN 
LAST FEW MONTHS. 
A LOT OF PEOPLE ON TWITTER, A 
LOT OF PEOPLE BLOGGING ABOUT 
IT. 
THERE WAS A CONFERENCE 
YESTERDAY ABOUT RINGING 
TOGETHER MUCH OF SILICON 
VALLEY'S TOP INVESTORS, WHICH 
YOU WERE THEREFORE. 
WHAT IS YOUR TAKE ON DIRECT 
LISTINGS?>> AS SOMEONE WHO 
INVESTS IN COMPANIES UPENDING 
THE STATUS QUO, THERE ARE SOME 
THINGS APPEALING ABOUT A 
FINANCIAL VEHICLE, AND 
INSTRUMENT THAT IS UPENDING HOW 
THINGS HAVE BEEN DONE FOR A 
LONG TIME. 
I THINK IT IS IMPORTANT TO 
UNDERLINE THAT DIRECT LISTINGS 
ARE NOT FOR EVERYBODY AND AS 
CAL MENTIONED RIGHT OFF THE 
BAT, ONE OF THE UNIQUE THINGS 
ABOUT A DIRECT LISTING TODAY AT 
LEAST IS THAT YOU DO NOT RAISE 
CAPITAL. 
IT IS ONLY APPROPRIATE FOR 
COMPANIES THAT DON'T NEED TO 
RAISE CAPITAL AS PART OF THEIR 
PUBLIC OFFERING. 
BUT THERE ARE OTHER 
REQUIREMENTS THAT I THINK I 
BEING SO STOP AT A MARKET. 
YOU HAVE TO HAVE A PRODUCT AND 
A BUSINESS THAT PEOPLE CAN 
EASILY UNDERSTAND AND YOU HAVE 
TO HAVE AN EXECUTIVE TEAM THAT 
IS WILLING TO GET OUT THERE AND 
POUND THE PAVEMENT AND TELL 
THAT STORY BECAUSE YOU DO NOT 
HAVE RESEARCH ANALYST WHO ARE 
ASSIGNED TO COVER YOU. 
AND YOU KNOW, I THINK FRANKLY 
MOST IMPORTANTLY, YOU HAVE TO 
HAVE SHAREHOLDERS WILLING TO 
SELL BECAUSE YOU NEED SOMETHING 
THAT IS ACTUALLY GOING TO TRADE 
ON THE FIRST DAY AND YOU NEED 
ENOUGH OF IT THAT THERE IS NOT 
GOING TO BE A CRAZY NOT 
VOLATILITY. 
THERE ARE A NUMBER OF 
REQUIREMENTS FOR DIRECT 
LISTING, BUT THERE ARE A LOT OF 
BENEFITS. 
I THINK SOME ENTREPRENEURS FEEL 
LIKE IT IS A MORE TRANS-PALLET 
PROCESS, YOU CAN PUT ALL YOUR 
MATERIALS ONLINE. 
I THINK SOME FOLKS FIND IT 
APPEALING THAT RATHER THAN 
HAVING UNDERWRITERS LINEUP 
INVESTORS AND SET THE PRICE 
THEMSELVES, YOU JUST AT THE 
MARKET HAVE AT IT AND WHAT COME 
WHAT MAY. 
I ALSO THINK AS CAL MENTIONED, 
THERE IS NO LOCKUPS, YOU DO NOT 
HAVE THE SMALL BEER AT SOME 
POINT IN TIME IN THE FUTURE. SO 
THERE ARE A LOT OF BENEFITS AS 
WELL. 
OF COURSE, YES, THANKS ARE 
INVOLVED. 
THE FEES ARE LESS, BUT THERE 
ARE STILL BANKS INVOLVED. 
>> ONE OF THE THINGS HE SAID 
BACKSTAGE IS MANY OF THE 
COMPANY'S HE WORKED WITH, 
DIRECT LISTINGS ARE PART OF THE 
CONVERSATION I. SO WHAT ARE 
YOUR PREDICTIONS IN THE NEXT 
FEW YEARS? 
HOW MANY MORE DO YOU THINK WE 
WILL SEE?>> I THINK SPOTTED BY 
AN SLACK HAVE OPENED THE DOOR 
FOR MORE PRESSURE. 
THERE HAVE BEEN RUMORS OF OTHER 
BIG COMPANIES THAT ARE GOING TO 
GO THROUGH THAT DOOR. 
SO I THINK WHAT WE WILL 
CONTINUE TO SEE MORE, I THINK 
WHAT IS UNPROVEN RIGHT NOW IS 
TO WHAT DEGREE YOU NEED TO HAVE 
BRAND RECOGNITION OR WHAT 
DEGREE YOU NEED TO BE SUPER 
SCALE FOR IT TO BE AN 
APPROPRIATE VEHICLE. THERE CAN 
BE GREAT COMPANIES, GREAT 
BUSINESSES, BUT MAYBE THEY ARE 
ONLY GOING TO BE VALUED AT 1 
BILLION AT MAX. 
IS THE DIRECT LISTING. 
DO THEY NEED MORE OF THE 
SUPPORT AND INFRASTRUCTURE OF 
TRADITIONAL BANKS. 
I THINK YOU WILL SEE MORE OF 
THEM. 
I CANNOT PREDICT FIVE YEARS 
FROM NOW IS GOING TO LOOK 50-50 
OR WHATNOT. 
BUT I DO THINK THAT THERE IS 
GOING TO BE MORE EXPLANATION 
AROUND ALTERNATIVE PATHS TO 
PUBLIC MARKETS. 
>> THIS WAS A VERY INNOVATIVE 
TOOL TO COMMUNICATE WITH 
EMPLOYEES AT YOUR COMPANY. 
THERE HAVE BEEN MANY COPYCATS 
AS THERE OFTEN ARE WITH 
COMPANIES LIKE THIS. 
ONE OF THOSE IS MICROSOFT, 
WHICH LAUNCHED TEAMS. 
IT WAS MAYBE 2017. 
SO YEARS AFTER SLACK LAUNCHED. 
YOU GUYS HAVE PUBLISHED AN AD 
PLAYFULLY. SORT OF THING 
WELCOME TO THE MARKET. 
IT IS NOT EASY. 
I AM WONDERING HAS THE 
SENTIMENT AROUND MICROSOFT AND 
THE FORCE OF TEAMS CHANGED AT 
FLOCK? 
>> YOU KNOW, HAVING MICROSOFT 
IS DEFINITELY A COMPANY TO BE 
VERY AWARE OF. 
THEY ARE VERY CAPABLE LARGE 
COMPANY WITH A CREDIBLE TRACK 
RECORD. 
YOU KNOW, ON THE ONE SIDE, I 
THINK IT HAS BEEN GOOD FOR US 
AS A MARKET VALIDATION THAT YOU 
KNOW, THERE IS A LOT OF OTHER 
SMALL COMPANIES THAT HAVE TRIED 
SOMETHING LIKE SLACK, BUT IF 
MICROSOFT IS BUILDING A PRODUCT 
IN THIS SPACE, THIS IS A 
CATEGORY THAT IS GOING TO 
CONTINUE TO EXIST IN THE 
FUTURE. 
THIS IS THE STRONG BELIEF THAT 
THIS KIND OF TOOL IS THE KIND 
OF THING THAT EVER ENTERPRISE 
IS GOING TO WANT AT SOME POINT. 
I THINK YOU KNOW, WE HAVE 
UNIQUELY MAYBE FOREIGN 
ENTERPRISE SOFTWARE COMPANY, WE 
HAVE FOCUSED ON THE USER 
EXPERIENCE AND WHAT IT IS LIKE 
TO USE SLACK. 
A LOT OF, MOST OF OUR EARLY 
GROWTH WAS DRIVEN FROM PEOPLE 
JUST PICKING IT UP IN TRYING IT 
AND FINDING IT USEFUL. 
AND YOU KNOW, AND LIKING IT, 
WHICH IS DEFINITELY NOT THE WAY 
PEOPLE USED TO BUILD ENTERPRISE 
SOFTWARE. 
I THINK WE ARE CONTINUING TO 
TAKE THAT APPROACH TO MAKING A 
REALLY GREAT EXPERIENCE THAT 
PEOPLE LOVE TO USE. 
I THINK THAT CAN BE A STRONG 
COMPETITIVE ADVANTAGE FOR US IN 
AN DURING WAY. 
>> I JUST HAVE TO ADD, IF YOU 
GO TO DUAL TRENDS AND YOU LOOK 
UP MICROSOFT TEAMS, THE TOP 
TRENDING ASSOCIATED TERMS ARE 
HOW DO I UNINSTALL MICROSOFT 
TEAMS. HOW DO I GET RID OF 
MICROSOFT TEAMS. 
SO THERE ARE DEFINITE BENEFITS 
TO OWNING YOUR DISTRIBUTION 
CHANNEL, BUT ALSO FROM A 
CONSUMER STANDPOINT, IT HAS 
REAL DRAWBACKS. 
>> [MUSIC] 
ABOUT CAN BUNDLE TEAMS. 
A LOT OF PEOPLE HAPPY ADVANTAGE 
IN THAT THEY CAN JUST SORT OF 
BE LIKE TAKE IT EVEN IF YOU DO 
REALLY WANT TO UNINSTALL IT. 
I THINK MANY SEE THAT AS A 
THREAT TO SLACK AND I THINK 
PARTIALLY WHY MAYBE SOME ARE 
HERE ON THE FLAT STOCK. 
>> YOU KNOW, THE MAJORITY OF 
ENTERPRISE COMPANIES IN THE 
WORLD ARE MICROSOFT CUSTOMERS. 
LIKE THE VAST MAJORITY. 
BUT MANY OF THOSE COMPANIES ARE 
SLACK CUSTOMERS AS WELL. 
SEWED DON'T THINK THAT WE SEE, 
YOU KNOW THAT DISTRIBUTION IS 
GREAT, BUT WE, ONE OF THE GOALS 
WITH THE PRODUCT IS THAT WE 
WANT EVERY BIT OF SOFTWARE THAT 
YOUR COMPANY USES TO BE MADE A 
LITTLE BIT MORE USEFUL, A 
LITTLE BIT MORE VALUABLE BY 
USING IT WITH SLACK. 
IF YOU ARE AN ENTERPRISE 
COMPANY, SOME OF THOSE COME 
FROM MICROSOFT. 
WE WENT TO MAKE THEM BETTER 
WITH SLACK AND A WHOLE BUNCH OF 
THEM DO NOT COME FROM 
MICROSOFT. 
THE TREND OVER THE LAST DECADE 
IN SOFTWARE IN THE WORKPLACE IS 
NOT THE LIBERATION OF TOOLS. 
THE AVERAGE MEDIUM-SIZED 
COMPANY TODAY IS BUYING 1000 
DIFFERENT SOFTWARE TOOLS. 
TO USE IN THE WORKPLACE. 
AND YOU KNOW, INCREASINGLY 
SMALLER PORTION OF THAT 
OVERTIME IS COMING FROM 
MICROSOFT TO ALL THE BIG 
VENDORS. 
SO WE SEE PART OF THE VISION OF 
THE INTEGRATION PLAN FORM AN 
SLACK IS THAT WE WANT THOSE 5% 
OF APPS THAT COME FROM THE BIG 
SOFTWARE AND THE OTHER 95% OF 
APPS THAT YOU ARE USING TO BE 
PRODUCTIVE IN YOUR MARKETING 
TEAM IN YOUR SALES TEAM AND 
YOUR ACCOUNTING TEAM AND YOUR 
PAYABLE TEAM. 
SO THAT IT IS HOW WE LOOK AT 
IT. 
>> ONE OF YOU MENTIONED, YOU 
WERE ABLE TO DO A DIRECT 
LISTING HE HAD RAISED $1 
MILLION. 
A LOT OF MONEY AS A PRIVATE 
COMPANY. 
ONE OF YOUR INVESTORS WITH 
SOFTBANK HE WENT TO ASK THEY 
OWNED 7% AND THERE HAVE BEEN 
MANY CONVERSATIONS IN THE LAST 
COUPLE YEARS AROUND SOFTBANK 
AND THE FACT THAT MUCH OF THEIR 
CAPITAL IS FROM THE SAUDI 
ARABIAN GOVERNMENT. 
SO I AM CURIOUS HOW YOU HAVE 
FELT ABOUT SLACK TAKING MONEY 
FROM SOFTBANK OVER THE YEARS?>> 
I THINK LIKE THE WAY THAT I 
FEEL TOWARDS THE ACTIONS OF THE 
SAUDI ARABIAN GOVERNMENT IS 
DEFINITELY YOU KNOW, IT IS THE 
ANNIVERSARY OF THE MURDER. 
LIKE, THAT IS A PART, YOU KNOW, 
OBVIOUSLY. 
HOW WE THINK ABOUT, WE ARE, IT 
IS A VERY HYPOTHETICAL QUESTION 
BECAUSE THE SITUATION TODAY IS 
WE ARE A PUBLIC COMPANY THAT IS 
VERY WELL-CAPITALIZED. 
IF WE WERE STILL A PRIVATE 
COMPANY AND WE NEEDED TO RAISE 
CAPITAL TODAY, RAISE A LARGE 
AMOUNT OF CAPITAL, THEN WE 
WOULD USE ALL THE INFORMATION 
THAT WE COULD WHEN ASSESSING 
AND DOING OUR DUE DILIGENCE. 
>> THAT IS TO SAY YOU MAY VERY 
WELL NOT HAVE TAKEN CAPITAL 
FROM SOFTBANK KNOWING WHAT YOU 
KNOW NOW. 
>> WE WOULD HAVE A LOT MORE 
INFORMATION TODAY. 
>> SIMILAR FOR YOU, YOU 
COINVEST WITH SOFTBANK. YOU ARE 
FIRST AN INVESTOR BEFORE THEM. 
I AM NOT SURE IF YOU COINVEST 
IT IN OTHER CASES, BUT HOW DOES 
THAT FEEL? 
HOW DO YOU FEEL ABOUT SOFTBANK 
AND ITS ROLE IN SILICON VALLEY 
VENTURE CAPITAL. 
>> ATTEND TO SAY THAT IF WE ARE 
LOOKING AT THE SAME DEAL AS 
SOFTBANK, ONE OF US IS LOOKING 
AT THE WRONG DEAL. 
THEY ARE TRADITIONALLY LOOKING 
AT EXTREMELY LARGE INVESTMENTS, 
HUNDRED MILLION IS THE MINIMUM 
YOU KNOW, 200, 300, 400 THEY 
ARE CAPITALIZING. 
I THINK SOME PEOPLE ARGUE 
CAPITALIZING BUSINESSES TO THE 
EXTENT IT IS NOT APPROPRIATE 
FOR US. 
WE ARE WRITING $30 MILLION 
CHECKS. 
WE THINK ABOUT VENTURE GROWTH 
AS A POST THAT THE EQUITY THEY 
ARE DOING. 
I HAVE GENERAL VIEWS ON RAISING 
THAT MUCH CAPITAL, NOT 
NECESSARILY SPECIFIC TO 
SOFTBANK. 
THERE ARE OTHER VEHICLES FOR 
RAISING THAT AMOUNT OF CAPITAL. 
YOU KNOW, I THINK WE ARE SEEING 
A BACKLASH AGAINST THAT RIGHT 
NOW. 
I THINK IT IS IMPORTANT TO 
UNDERSTAND YOUR BUSINESS AND 
UNDERSTAND HOW YOU WILL PUT 
THAT MONEY TO WORK BEFORE YOU 
RAISE IT AND I THINK THAT WE 
HAVE SEEN SOME LOOSENING OF 
THAT OVER THE PAST FEW YEARS 
THAT I FEEL AND SENSE THERE IS 
A TIGHTENING AROUND NOW. 
>> IF SOFTBANK WENT AWAY TODAY, 
DO YOU THINK THAT WOULD BE A 
NET POSITIVE OR A NEGATIVE ON 
THE ECOSYSTEM? 
FOR BOTH OF YOU?
>> IT IS HARD TO IMAGINE THE 
SYSTEM WITHOUT SOFTBANK, SO 
THAT IS KIND OF HARD TO SAY.>> 
I WISH THEY WERE NOT WRITING 
QUITE SUCH BIG CHECK, THAT IS 
FOR SURE. 
IT DOES FEEL LIKE A LOT OF 
COMPANIES HAVE RAISED MORE 
CAPITAL THAN THEY KNOW WHAT TO 
DO WITH RESPONSIBLY. 
SO I CAN'T IMAGINE A WORLD 
WHERE THERE IS NO SOFTBANK, BUT 
I IMAGINE A WORLD WHERE 
POTENTIALLY SOFTBANK IS NOT 
SORT OF WRITING THE TYPES OF 
CHECKS THEY ARE WRITING TODAY. 
>> LAST QUESTION I WILL ASK, I 
AM CURIOUS WHAT KIND OF VALUE 
WOULD YOU SAY THEY ADDED TO 
SLACK?>> THE EXPERTISE IN THE 
MARKET IN JAPAN IS HUGE FOR US. 
THEY ARE THE KIND OF MARKET 
CATEGORY LEADERS IN 
UNDERSTANDING ENTERPRISE AND 
THAT MARKET, WHICH IS AN 
IMPORTANT MARKET FOR US. 
YOU KNOW, THAT WAS WHY THEY 
WERE SUCH A STRATEGIC INVESTOR 
FOR US. 
>> I DO WANT TO END BY TALKING 
QUICKLY ABOUT LITIGATION 
FATIGUE. 
BEFORE WE GET INTO IT, COULD 
YOU TELL US WHAT SLACK IS 
INTENDED TO BE USED FOR?>> 
INTENDED TO BE USED FOR WORK. 
WE HAVE WORK TEAMS AND 
COLLABORATION OF THE WORKPLACE. 
IS OF THE KIND OF INDUSTRY YOU 
ARE IN OR THE KIND OF ORAL THAT 
YOU FULFILL, IF YOU ARE IN A 
WORLD WHERE YOU COMMUNICATE 
WITH OTHER PEOPLE IN THE 
WORKPLACE CAN THEN SLACK IS 
THERE FOR THAT.
>> MANY PEOPLE SAY SLACK HAS 
BEEN DETRIMENTAL TO WORK 
BECAUSE OF CONSTANT 
MEDICATIONS, SO SOME HAVE 
WRITTEN THAT IT HAS READ 
PRODUCTIVITY, WHICH IS MAYBE AN 
EXTREME OR HOT TAKE. 
MEGAN, YOU HAVE SAID YOU ARE 
SHAKING YOUR HEAD. 
YOU LIKE SLACK. 
HOW CAN WE MAKE, DO YOU THINK 
PEOPLE ARE USING SLACK WRONG?
>> A LOT OF THE SENTIMENT COMES 
FROM THE RISE OF THE SMARTPHONE 
IN THE WORKPLACE. 
THAT HAS CHANGED HOW WE WORK 
OVER THE LAST DECADE. 
BECAUSE YOU HAVE THIS DEVICE 
WITH YOU ALL THE TIME, IT IS 
ALWAYS CONNECTED. 
IT IS EASY TO ALWAYS BE IN A 
STATE OF SEMI-WORKING WHERE YOU 
ARE NEVER USED TO BE AT WORK OR 
NOT NL YOU CAN ALWAYS BE IN THE 
WORKPLACE. 
AND I THINK THAT IS A GENERAL 
GLOBAL TREND. I THINK WE ARE 
VERY COGNIZANT OF THAT AND HAVE 
BUILT FEATURES AROUND THE 
PRODUCT TO TRUMPET THOSE 
CONTROLS IN THE HANDS OF THE 
USERS. 
SO THAT IS RINGS LIKE DO NOT 
DISTURB HOURS WHEN YOU KNOW YOU 
DO NOT WANT TO BE NOTIFIED OF 
THINGS OR BEING ABLE TO HOOK UP 
SLACK TO YOUR CALENDAR SO THAT 
WHEN YOU ARE IN A MEETING OR 
WHEN YOU ARE TRAVELING, YOUR 
STATUS IS AUTOMATICALLY THERE 
SO PEOPLE WILL KNOW IF YOU'RE 
AVAILABLE OR NOT, OR FINE-
GRAINED NOTIFICATION 
PREFERENCES. 
THAT IS CONTROLLED BY THE 
USERS. 
I THINK YOU KNOW, THERE'S A 
SOCIAL ASPECT OR SOCIETAL 
ASPECT OF IT AND THEN THEY SAY 
WHAT CONTROLS CAN BE USED TO 
HAVE, YOU KNOW, TO BE ABLE TO 
CONTROL WHEN THEY WANT TO BE 
INTERRUPTED. 
>> POSSIBLE PEOPLE ARE NOT 
LEVERAGING THESE TOOLS THAT YOU 
HAVE? 
>> TO THE EXTENT THAT THAT IS 
TRUE, THAT IS OUR FAULT. 
WE ARE THE PROVIDERS OF THOSE 
TOOLS AND WE CAN ALWAYS DO A 
BETTER JOB OF EDUCATING OUR 
CUSTOMERS AROUND HOW WE THINK 
SLACK CAN BEST BE USED. 
>> I WILL SAY AS A MEDICALLY 
ACTIVE USER, ONE OF THE THINGS 
THAT SLACK HAS ENABLED IS THE 
REDUCTION IN USING OTHER 
DIFFERENT TYPES OF APPLICATIONS 
AND HAVING TO CONSTANTLY CHECK 
LOTS OF DIFFERENT TYPES OF APPS 
BECAUSE THE NATURE OF SLACK AS 
AN INTEGRATOR MEANS THAT I CAN 
GATHER INSIGHT AND DATA ON 
INFORMATION RIGHT WHERE I AM 
HAVING THE CONVERSATION WITH MY 
TEAM ABOUT THE VERY THINGS THAT 
WE WOULD HAVE TO BE GOING OFF 
AND PULLING FROM ELSEWHERE. 
I DO THINK THAT IS ANOTHER 
FUNCTIONALITY OF THE PLATFORM 
THAT HAS BEEN EXTREMELY 
POWERFUL FOR ME. 
>> I THINK THERE HAS BEEN A 
KIND OF EXPLOSION OF SOFTWARE 
CATEGORIES AND SOFTWARE IN THE 
WORKPLACE. 
THE WORK HAS BECOME FRAGMENTED 
AND IT IS PART OF SLACK, PART 
OF SLACK IS PULLING THAT ALL 
INTO ONE PLACE SO THAT ALL THE 
DIFFERENT WORK THAT HAPPENS 
ACROSS THE ORGANIZATION IS 
HERE. 
>> WE ARE SUDDENLY OUT OF TIME. 
THANK YOU BOTH SO MUCH. 
I HOPE YOU WILL COME BACK. 
>> THANK YOU.
>> HERE WE GO, DO NOT MISS ME 
THIS TIME. 
THERE WE GO. 
ALL RIGHT. 
ON THE STAGE, 3:45, HOW TO 
BUILD A SUBSCRIPTION PRODUCT 
WITH COFOUNDER OF LOLA. YOU ARE 
A PARTNER OR RENTER VENTURES. 
FOUNDER AND CEO OF CUBIC OH. 
SURE TO CHECK IT OUT IF THAT IS 
OF INTEREST TO YOU. 
FOR NOW, WE ARE GOING TO BRING 
BACK OUT A FAMILIAR FACE AND 
ANOTHER FAMILIAR FACE AND A NEW 
FACE. 
IS WELCOME COFOUNDER AND CEO OF 
BREX, HENRIQUE . MICHELLE 
RAVENEL AND YOUR MODERATOR FOR 
THE THIRD TIME IN A ROW, K 
CLARK. 
>> HELLO, WELCOME, WE ARE HAPPY 
TO HAVE YOU HERE. 
TWO OF THE FASTEST GROWING 
STARTUPS, CONSTANTLY BROUGHT UP 
TO ME AMONGST FOUNDERS. 
I THINK YOU GUYS HAVE RAISED 
$500 MILLION IN VENTURE CAPITAL 
FUNDING. 
BUT THERE IS AN ELEPHANT IN THE 
ROOM I WANT TO ADDRESS BEFORE 
WE GET INTO THAT CONVERSATION 
AND THAT IS STRIKE. IF YOU GUYS 
PAY ATTENTION TO THE ECOSYSTEM, 
YOU HAVE NOTICED NEWS COMING 
OUT OF STRIPE. 
I WANT TO START WITH MICHELLE. 
STRIPE LAUNCHED SOMETHING 
CALLED STRIPE CAPITAL A COUPLE 
WEEKS AGO TO PROVIDE FINANCING 
AT A FLAT FEE TO THOUSANDS OF 
EXISTING CUSTOMERS. 
SO MAYBE YOU COULD EXPLAIN SORT 
OF HOW THAT DIFFERENTIATES 
EMPLOYER BANK AND WHAT YOU 
PROVIDE.
>> OF COURSE. 
STRIPE HAS BEEN A GREAT PARTNER 
OF OURS AND WE KNEW THIS WAS 
COMING AND AT THE END OF THE 
DAY, LIKE SEQUOIA DID NOT GO 
OUT  BUSINESS. 
SO I THINK IT IS LOSING SIGHT 
OF THE FACT THAT IT IS 
INCREDIBLY DIFFICULT FOR 
FOUNDERS TO RAISE MONEY FOR 
THEIR COMPANIES. 
SO MY BACKGROUND WAS I HAD 
STREP TO FIVE DIFFERENT 
COMPANIES BEFORE THIS AND ENDED 
UP SELLING ONE AND THEN GETTING 
ASKED TO JOIN THE CAST OF THE 
CANADIAN VERSION OF THE SHARK 
TANK TELEVISION SERIES. 
IT WAS THERE THAT I KEPT SEEING 
ALL THESE FOUNDERS GIVE SO MUCH 
OF THEIR COMPANIES A WAY TO 
BASICALLY GO BY FACEBOOK AND 
GOOGLE ADS. 
THE FIRST A DEAL WAS DONE ON 
THE SHOW WHEN I REMEMBERED 
TELLING A COMPANY THAT I WOULD 
GET THE 100 GRANT THAT THEY 
WERE WANTING TO GIVE 20% OF THE 
COMPANY UP FOR. 
I SAID LOOK, GIVE ME 5% OF YOUR 
REVENUE AND PAY ME BACK 
$106,000. 
SO THIS WAS NOT DEAD. 
I WAS NOT CHARGING MUCH FOR 
CAPITAL, BUT THERE WAS NO 
PERSONAL GUARANTEE SOMETHING 
WOULD GET SHARE. 
THERE WAS NO TIMELINE OR 
COMPOUNDING INTEREST. 
IT WAS TRULY LIKE IF YOU WERE 
USING MY CAPITAL TO GO BY ADS, I
PAY BACK A LITTLE BIT FASTER 
BECAUSE THAT WAS A REVENUE 
GENERATING ACTIVITY. 
IF THE BUSINESS SLOWED IT DOWN, 
I WOULD WAIT IT OUT. 
I DO NOT THINK WE EVER EXPECTED 
THERE TO BE THIS MUCH DEMAND 
FOR OUR PRODUCT, LIKE WE WILL 
INVEST $1 BILLION INTO 2000 
DIFFERENT COMPANIES THIS YEAR. 
AND I THINK THAT IS BECAUSE 40% 
OF THESE DOLLARS AND OUTGOING 
TO GOOGLE AND FACEBOOK, WHICH 
MEANS FOUNDERS ARE USING THE 
MOST EXPENSIVE CAPITAL, WHICH 
IS EQUITY TO DO SOMETHING THAT 
BY DEFINITION IS SCALABLE. 
I THINK THAT IS A 
DIFFERENTIATION. 
>> I WANT TO TALK ABOUT THAT. 
A COUPLE DAYS AFTER STRIPE 
LAUNCHED CAPITAL, THEY LAUNCHED 
THE CORPORATE CARD, WHICH IS 
ACTUALLY PRETTY SIMILAR TO WHAT 
BREX OFFERS, WHICH IS A CREDIT 
CARD FOR STARTUPS.  
FIRST QUESTION FOR YOU IS 
STRIPE COPY YOU?>> WE KNEW IT 
WAS COMING FOR A WILD. 
BETWEEN VENTURE CAPITALIST, WE 
ALWAYS HEAR THIS STUFF. 
THE SIMILARITY WAS QUITE 
SURPRISING. 
I THINK THAT, YOU KNOW, FOR US, 
YOU KNOW, I LIKE TO SAY THIS, 
THERE ARE 44 BANKS IN THE U.S. 
THAT ARE WORTH OVER $10 
MILLION. 
SO IT IS DIFFERENT IN COMPANIES 
THAT HAVE WORKED EFFECTS. 
FINANCIAL SERVICES IS, YOU KNOW,
NON-WINNER TAKES ALL INDUSTRIES.
SO I THINK THEY CAN BE 
SUCCESSFUL. 
HE CAN BE SUCCESSFUL AND YOU 
KNOW, CHASE IS GOING TO BE THE 
ONES THAT WILL LOSE THE MOST 
SHARE. 
>> ARE YOU CONCERNED? 
STRIPE IS A $30 BILLION 
CUSTOMER.  
THEY HAVE BEEN AROUND YEARS 
MORE THAN BREX.  
CERTAINLY A BIG THREAT. 
>> EVERY TIME AN INCUMBENT 
LAUNCHES A PRODUCT, YOU KNOW, 
THE INSURGENT HAS TO COMPETE 
AND YOU KNOW, FOR THEM, I INC. 
IT IS THE ACE PRODUCT AND 
GLOBAL BATTLE. ALL THESE GUYS, 
FOR US, THIS IS OUR ENTIRE 
LIFE. 
WE WILL FOCUS ALL OUR ATTENTION 
ON TWO PRODUCTS. 
YOU KNOW, WE THINK WE CAN DO A 
BETTER JOB. 
>> ONLY OVERSEEING COMPETITION 
STRIKE, WE SEE A LOT OF 
STARTUPS. 
I THINK SINCE I HAVE BEEN 
COVERING CLEAR BANK, I HAVE 
NOTICED, JUST THE OTHER DAY, A 
$2 MILLION AROUND WHICH I THINK 
PROVIDES CAPITAL HAD TO DC 
BRANDS. THESE COMPANIES ARE 
TRYING TO RAISE THE SEAT AND 
THEY ARE LOSING SO MUCH EQUITY. 
DID YOU EXPECT TO SEE SO MUCH 
HAPPENING JUST IN SUCH A SHORT 
PERIOD? 
>> YEAH, I MEAN, THE SPACE HAS 
BLOWN UP I THINK THE CHALLENGE 
HAS ALWAYS EXISTED FOR 
FOUNDERS. 
I THINK ONE OF THE THINGS WE 
ARE NOT TALKING ABOUT, AND WE 
HAVE A LOT OF ADVANTAGES THAT I 
THINK, DATA HAS TOLD US SO MANY 
INTERESTING STORIES. 
WE ú18 TIMES MORE FEMALE 
FOUNDERS BECAUSE WE ARE 
LITERALLY LOOKING AT ECONOMICS 
AND DATA IN FINDING THAT. 
THE OTHER THING I FIND CRAZY IS 
THAT 80% OF DOLLARS ARE 
DEPLOYED IN FOUR STATES IN 
AMERICA. 
CALIFORNIA, NEW YORK, 
MASSACHUSETTS AND TEXAS. 
AS WE HAVE DEPLOYED IN 43 
DIFFERENT STATES. 
I THINK ULTIMATELY WHAT IS 
HAPPENING IS THAT NO 
. 
>> AND ULTIMATELY I THINK 
THAT'S PROBABLY REACHED A PEAK 
AND WHAT'S DRIVEN THAT IS 
ACQUISITION COSTS WHICH I DON'T 
THINK PEOPLE ARE FULLY 
APPRECIATING IS THAT TECHNOLOGY 
USED TO BE A HUGE MODE. 
IT WAS REALLY DIFFICULT TO 
BUILD A WEBSITE AND SET UP 
SERVERS AND DO ALL THAT, BUT 
NOW THAT THAT'S SO SIMPLE IT'S 
REALLY ABOUT ACQUIRING AS MANY 
USERS AS POSSIBLE WHICH LED TO 
BIGGER AND BIGGER ROUNDS WHICH 
LED TO MORE DILUTIONS FOR 
FOUNDERS. 
>> YOU BOTH RAISED QUITE A BIT 
OF CAPITAL. 
IN TOTAL YOU'VE RAISED $380 
MILLION. 
YOU'VE RAISED A LOT OF MONEY. 
AT THIS POINT HOW MUCH DO YOU 
OWN? 
>> WE DON'T DISCLOSE OWNERSHIP 
PERCENTAGE, BUT WE DEFINITELY 
SUFFER DILUTION OVER TIME. 
I THINK WE'RE ALWAYS FORTUNATE 
BY BEING SECOND TIME FOUNDERS 
IN A BIG MARKET AND TRUST 
INVESTORS TO RESIST DILUTION 
OVER TIME, BUT WE TALKED TO 
FOUNDER AND THEY HAVE EXACTLY 
THIS PROBLEM. 
I'VE BEEN IN BUSINESS FOUR 
YEARS AND HAVE 3% OF MY 
COMPANY. 
I DON'T KNOW WHAT TO DO. 
>> ONE CAN ASSUME JUST BECAUSE 
YOU'VE RAISED SO MUCH SO 
QUICKLY YOU CAN SUFFER FROM 
SOME OF THAT. 
ARE YOU HAPPY WITH THE AMOUNT 
THAT YOU OWN? 
>> I'M VERY HAPPY. 
>> THAT'S GOOD. 
WOULD YOU SAY THAT VENTURE 
CAPITAL IS BROKEN? 
>> THE WAY THAT I SEE IT IS 
THAT -- AND WE GET THIS 
QUESTION ALL THE TIME. 
WE'RE LIKE ARE YOU TRYING TO 
DISRUPT VC AND PART OF THAT'S 
TRUE, BUT I THINK I WOULD LOOK 
AT USES OF CAPITAL LIKE VC USED 
TO BE TRUE RISK CAPITAL, RIGHT? 
YOU WANT TO GO SOLVE A CRAZY 
DISEASE OR HIGHER 100 DATA 
SCIENTISTS TO DO SOMETHING LIKE 
TRUE 0-1 RISK WHERE THIS WHOLE 
THING COULD BE WORTH NOTHING AT 
THE END OF THE DAY. 
THAT'S EQUITY LEVEL RISK, BUT 
COME ON, IF YOU'RE 
INVESTIGATION $1 IN FACEBOOK 
AND KNOW YOU'RE GETTING $4 IN 
SALES OUT, THAT'S NOT RISK 
FUNDED ANYMORE. 
ULTIMATELY I THINK A LOT OF VCs 
SAW THAT AS WELL IS THAT THERE 
CAN BE, YOU KNOW, DIFFERENT 
ASSET CLASSES DEPENDING ON WHAT 
YOUR USE OF FUNDS IS. 
>> BUT WHAT ABOUT THIS 
DIVERSITY ISSUE? 
YOU BROUGHT IT UP ONCE. 
YOU'VE ALREADY FUNDED SO MANY 
WOMEN USING THIS MODEL. 
>> YES. 
>> AND PEOPLE FROM STATES THAT 
ARE RELATIVELY UNTOUCHED BY 
VENTURE CAPITAL FUNDING. 
>> RIGHT. 
>> VENTURE CAPITAL IS A HUMAN 
TO HUMAN BUSINESS. 
IT IS ME GETTING TO KNOW YOU, 
UNDERSTANDING WHAT IS 
INCREDIBLE ABOUT YOUR BUSINESS 
AND TAKING THAT AND HUMAN HUMAN 
BUSINESSES CAN ONLY EXPAND SO 
QUICKLY. 
IT'S KIND OF BIZARRE BECAUSE 
THIS IS THE ONLY REASON WE'RE 
IN TECHNOLOGY BECAUSE WE GET 
THIS INSTANT SCALE THAT COMES 
WITH BEING ABLE TO DO. 
SO WHEN WE BUILT OUR SYSTEM, WE 
HAD TO USE DATA SCIENCE AND AT 
TO EFFECTIVELY DO WHAT VCs WERE 
DOING ON THE LTV TO CAC AND 
ECONOMIC BASIS BUT DO THAT TO 
SCALE. 
THERE WERE NINE STATES LAST 
YEAR THAT HAD ZERO COMPANIES 
THAT GOT VENTURE CAPITAL 
FUNDING. 
THIS IS AMERICA. 
THE LOGICAL CONCLUSION IS THERE 
WAS NO GOOD ENTREPRENEURS IN 
THOSE NINE STATES, IT'S THAT 
THE SYSTEM HADN'T REACHED THAT 
FAR. 
I THINK WE CAN BE PART OF THAT 
SOLUTION AND WE'RE BOTH SERVING 
A OF THESE S AND Bs WHICH ARE 
HALF OF THE GDPs IN AMERICA. 
WE'VE GOT A LOT OF GROUND TO 
COVER. 
>> I WANT TO TALK ABOUT BREX 
GOING THROUGH VICOMINATOR, SO 2 
1/2 YEARS AGO YOU ENTERED Y 
COMBINATOR AS A VIRTUAL REALITY 
START UP? 
>> YES. 
>> WHAT KIND OF VR SETUP WERE 
YOU HOPING TO BUILD AND YOU 
WERE LIKE OH, I'LL DO A FIN 
TECH INSTEAD? 
>> WE HAD A PAYMENT PROCESSOR 
IN BRAZIL BEFORE AND WE SOLD 
THAT COMPANY, MOVED TO THE WEST 
AND WE WERE TIRED OF FINTECH. 
WE WERE TRAUMATIZED BY THE 
REGULATION, THE BIG BANKS, 
EVERYTHING WAS SO HARD AND WE 
GOT TO SILICON VALLEY AND WE'RE 
LIKE WE'RE ON THE BLEEDING EDGE 
OF TECHNOLOGY. 
LET'S BUILD SOMETHING VERY 
BLEEDING EDGE AND THAT WAS YAR 
AT THE TIME. 
A LITTLE BIT IN WE WERE NO, 
THIS IS TOO HARD. 
LET'S GO BACK TO FIN TEXTING 
WHICH IS A TYPE OF HARD WE 
ALREADY KNOW. 
>> THE DEVIL YOU KNOW VERSUS 
THE DEVIL YOU DON'T. 
>> EXACTLY. 
>> THE STORY OF THE FOUNDATION 
CAN ACTUALLY EVOLVE A LITTLE 
BIT BECAUSE THIS PRODUCT WE 
ANNOUNCED TODAY WAS ACTUALLY 
THE FIRST PRODUCT WE THOUGHT 
ABOUT DOING. 
>> OKAY. 
>> WEAPON THOUGHT  -- WE 
THOUGHT ABOUT IT. 
IT WASN'T CALLED BREG AT THAT 
TIME. 
THE STARTUP TO HELP PEOPLE KEEP 
THEIR MONEY AND MAKE PAYMENTS, 
BUT AT THE TIME IT WAS LIKE WHO 
IS GOING TO GIVE US THEIR MONEY 
IF THEY'VE NEVER HEARD OF THIS 
THING? 
IT MAKES NO SENSE. 
NO ONE IS GOING TO TRUST US. 
>> PROBABLY GOOD THINKING. 
>> THAT'S WHY WE DECIDED TO GO 
THE STRATEGY OF BUILDING A 
CHARGE CARD BEFORE IN WHICH 
WE'RE BUILDING A BRAND BY 
GIVING PEOPLE MONEY AND THEN 
LATER ON WE COULD ACTUALLY, YOU 
KNOW, HELP THEM INTAKE THEIR 
MONEY. 
>> MICHELLE, YOUR CO-FOUNDER 
ANDREW, AT WHAT POINT DID YOU 
REALIZE YOU WERE SO PASSIONATE 
ABOUT FOUNDER EQUITY THAT YOU 
WANTED TO BUILD A BUSINESS 
AROUND IT? 
>> THE FUNNIEST PART IS ME AND 
MY CO-FOUNDER ANDREW WERE 
TOTALLY DIFFERENT ON THIS 
ISSUE. 
HE HAD RAISED A TON OF VENTURE 
MONEY FOR THREE DIFFERENT 
COMPANIES BEFORE. 
I HAD BOOT STRAPPED THREE 
DIFFERENT COMPANIES BEFORE AND 
SO HE KIND OF UNDERSTOOD LIKE 
HOW HARD IT WAS. 
HE'S LIKE LOOK, I BASICALLY GOT 
HIRED. 
I HAD TO SPEND THREE TO SIX 
MONTHS ON THE ROAD. 
EVERY TIME A FOUNDER RAISES 
MONEY EVEN IF YOU HAVE THE BEST 
COMPANY, YOU DO 100 MEETINGS 
AND GET 90 NO'S FROM INCREDIBLY 
INTELLIGENT PEOPLE LIKE EVERY 
SINGLE ONE OF THOSE HURTS IN A 
DIFFERENT WAY. 
SO I DON'T THINK ANY OF US GO 
INTO BUSINESS I MEAN LIKE YOU 
WERE THERE BEING LIKE LET'S 
SOLVE THE PROBLEM THAT EVERY 
FOUNDER HAS. 
I'M SURE YOU DIDN'T START BREX 
TO RAISE A BUNCH OF MONEY AND 
DO 1,000 INVESTOR MEETINGS. 
IF WE CAN MAKE THAT A LITTLE 
EASIER FOR EVERY FOUNDER, WE 
CAN ACTUALLY EMPOWER WAY MORE 
PEOPLE TO BE FOUNDERS BECAUSE 
IT'S STILL ONE OF THE BIGGEST 
GAPS IS HOW DO YOU GET ENOUGH 
CAPITAL TO GET BIG? 
>> SINCE YOU BOTH HAVE GROWN SO 
QUICKLY, AS HUMAN BEINGS WHAT 
HAS BEEN THE MOST DIFFICULT 
PART FOR YOU IN BUILDING THESE 
FAST GROWING FAST SCALING 
BUSINESSES? 
>> I THINK FOR ME THE MOST 
DIFFICULT PART IS PROBABLY -- 
IT'S A MIX BETWEEN I WOULD SAY 
THE PRESSURE AND THE PEOPLE 
ASPECT. 
WHEN WE RAISE THESE REALLY HIGH 
VALUATIONS, EVERYONE IS LIKE 
OH, WOW, YOU RAISED THESE SUPER 
HIGH VALUATIONS, BUT THE WAY IT 
KIND OF FEELS IS LIKE OH, WOW, 
NOW THIS COMPANY HAS TO DO AT 
LEAST $10 BILLION BEFORE ANYONE 
IS HAPPY. 
>> YEAH. 
>> SO I THINK LIKE THE HANDLING 
KIND OF THE PRESSURE AND 
EXPECTATIONS FROM, YOU KNOW, 
EVERYONE IS QUITE PERSONALLY 
TOUGH. 
>> YEAH. 
>> AND I THINK FROM THE OUTSIDE 
IT SEEMS LIKE YOU'RE ON TOP OF 
THE WORLD, BUT IN THERE WHEN 
EVERYTHING IS BREAKING AND ALL 
OF YOUR EMPLOYEES HAVE A LOT OF 
EXPECTATIONS ON YOU, IT'S A LOT 
OF GRIND. 
>> YEAH. 
I MEAN THE FOUNDER JOURNEY IS 
LIKE AT ITS BEST INCREDIBLY 
MESSY. 
THERE IS I ALWAYS SAY THAT, YOU 
KNOW, IN ANY GIVEN WEEK THERE'S 
GOING TO BE TWO THINGS THAT 
BLOW UP AND YOU'LL HAVE NO IDEA 
WHAT THOSE ARE GOING TO BE AND 
IT'S GOING TO BE LIKE HOW DO I 
FIX THESE NOW? 
I SHARE A LOT OF THAT. 
THERE'S A LOT OF EXPECTATIONS. 
THERE'S A LOT OF PRESSURE ON 
KNOWING WHAT'S GOING TO HAPPEN 
IN THE ECONOMY, WHAT'S GOING TO 
HAPPEN WITH EVERY COMPETITOR 
THAT ULTIMATELY ROLLS UP TO YOU 
AND I THINK PROBABLY WHAT'S 
HARDEST TO BE SCALED FOR ME IS 
I'VE ALWAYS RUN LITTLE 
COMPANIES WHERE I HAVE REALLY 
DEAL RELATIONSHIPS WITH THE 
PEOPLE I WORK WITH. 
AS YOU SCALE WE ADDED 100 
PEOPLE LAST QUARTER. 
SO THERE'S LESS AND LESS OF 
THAT THAT YOU GET TO HAVE. 
SO WE GOT TO FIGURE OUT NEW 
SYSTEMS TO COMMUNICATE AND 
CREATE THOSE RELATIONSHIPS, BUT 
IT'S NOT EASY. 
>> SO IN THE TWO YEARS THAT 
BREG  -- BREX HAS BEEN AROUND 
THERE HAS BEEN THE TALK OF A 
THREAT OF A DOWNTURN. 
>> WE TALK ABOUT IT. 
ONE TWEET AWAY, ONE SOMETHING 
AWAY, WE COULD ALL SNEEZE, 
RIGHT? 
>> YEAH. 
OBVIOUSLY YOU GUYS DO RELY ON 
STARTUPS EXISTING IN THE FIRST 
PLACE AND RAISING AND SPENDING 
MONEY. 
SO HOW DO YOUR BUSINESS MODELS 
WORK IN A RECESSION? 
>> I CAN TAKE IT FIRST. 
IN OUR CASE IF SOMEONE ACTUALLY 
TELLS YOU THEY KNOW EXACTLY HOW 
IT'S GOING TO BE IN A 
RECESSION, THEY'RE PROBABLY 
LYING BECAUSE THOSE RECESSIONS 
ARE COMPLETELY DIFFERENT BASED 
ON HOW YOU LOOK AT THEM. 
THEY HAVE VERY, VERY DIFFERENT 
ASPECTS. 
SO THERE'S ONLY SO MUCH YOU 
COULD DO. 
SO WE HAVE BASICALLY THREE 
THINGS. 
ONE IS OUR UNDERWRITING MODEL 
IS REALTIME. 
WE'RE REWRITING EVERY CUSTOMER 
EVERY DAY.  
THE WAY RECESSIONS HAPPEN, 
THEY'RE NOT, YOU KNOW, HEY, 
TODAY'S A RECESSION. 
THE STOCK MARKET MAY GO UP AND 
DOWN, BUT THE SPENDING AND 
DEFAULTS AND ALL THE THINGS 
THAT ACTUALLY IMPACT OUR 
BUSINESS ARE MORE GRADUAL OVER 
TIME. 
SO I THINK THAT'S -- THE FACT 
THAT OUR UNDERWRITING MODEL IS 
REWRIT  REWRITING EVERY 
CUSTOMER EVERY DAY IS A 
SIGNIFICANT IMPACT THAT WE 
HAVE. 
A LOT OF PEOPLE ASK US OH, WHY 
DID YOU RAISE THAT MUCH MONEY? 
WE DON'T BURN THAT MUCH BECAUSE 
WE HAVE LIKE A GOOD BUSINESS 
MODEL, BUT WE ALWAYS HAVE A LOT 
OF MONEY IN THE BANK IN CASE 
SOMEDAY THIS RECESSION HITS. 
>> YOU'RE BUILDING A WAR CHEST. 
>> WE HAVE IT THERE, RIGHT? 
I THINK THE THIRD THING IS 
BEING VERY MINDFUL IT MAY 
HAPPEN AND HAVING YOUR PLAN 
OKAY, IF THIS HAPPENS, WHAT 
WILL WE DO AND HAVE IT ALL 
PLANNED OUT. 
>> YEAH. 
I THINK LIKE I SHARE A LOT OF 
THE SAME VIEWS. 
I THINK THERE'S TWO THINGS THAT 
ARE REALLY NUKE ABOUT WHERE WE 
ARE IN THE MARKET TODAY. 
WE'VE BEEN IN THE LONGEST BULL 
RUN IN A LONG TIME. 
THE SECOND CRITICAL FACT IS 
EMPLOYMENT IS AT AN ALL TIME 
HIGH AND IT WOULD BE HIGHLY 
UNUSUAL FOR US TO GET A 
CONSUMER LED RECESSION WHEN 
EMPLOYMENT ABBEY AT AN ALL TIME 
HIGH. 
WHAT'S PROBABLY IS GOING TO 
HAPPEN WITH PEOPLE COMING OUT 
OF THE WOODWORK WE DIDN'T THINK 
WOULD HAVE JOBS AND THESE 
NUMBERS KEEP GOING UP, WHAT 
COULD HAPPEN, EQUITIES TAKE A 
TUMBLE WITH AN INVESTOR LED 
RECESSION AND ULTIMATELY THAT 
COULD MEAN THE VCs PULL BACK. 
SO WE THINK THERE WILL BE WAY 
MORE GREAT COMPANIES THAT WE 
CAN FUND IF SOME OF THE VCs 
STOP WRITING CHECKS. 
THE SECOND THING I THINK A LOT 
ABOUT AND THE CF TO OF GOOGLE 
DURING 2008 WAS PRETTY CLEAR. 
PRICES DROPPED BY 20 TO 30%. 
SO ULTIMATELY IF YOU HAVE 
CAPITAL AND KNOW WHAT YOU'RE 
DOING AND HOW THOSE CONDITIONS 
HAPPEN, I THINK THERE'S A 
SITUATION WHERE SOME OF THESE 
COMPANIES COULD DO QUITE WELL. 
AND WE SHARED THE SAME VIEW. 
OBVIOUSLY WE RAISED A LOT OF 
CAPITAL THIS YEAR. 
>> RIGHT. 
>> BECAUSE IF YOU HAVE CAPITAL 
IN A RECESSION, I THINK THAT 
THERE CAN BE SOME REALLY GOOD 
COMPANIES WE CAN BACK. 
>> ARE YOU HEADING BACK OUT TO 
THE MARKET TO RAISE SOME MORE 
MONEY? 
>> WE TALKED ABOUT THIS IN A 
PANEL THAT WE DID AT THE 
OFFICE. 
I THINK LIKE GROVE STAGE 
COMPANIES, THEY'RE ALWAYS 
RAISING MONEY OF SOME SORT. 
SO, YOU KNOW, IF THE TIME COMES 
WITH THE RIGHT INVESTOR IS NOT 
WHEN WE NEED THE MORE, IT'S 
MORE WHEN IT'S OPPORTUNISTIC. 
>> SO YOU ARE RAISING, THEN? 
>> WE'RE NOT ACTIVELY GOING OUT 
AND RAISING MONEY, BUT WE 
ALWAYS KEEP IN TOUCH WITH A LOT 
OF INVESTORS. 
>> FAIR ENOUGH. 
AFTER STRIPE ANNOUNCED THEIR 
NEWS THEY ANNOUNCED A HUGE 
CAPITAL INFUSION. 
I THINK OFTEN WE SEE COMPANIES 
LAUNCH BIG NEW PRODUCTS AND 
THAT LAUNCHES WHOLE FRESH NEW 
ROUNDS. 
ARE YOU ALSO APPROACHED BY 
COMPANIES LOOKING TO INQUIRE 
BREX? 
>> ALL THE TIME. 
WE ALWAYS GET THE HEAD OF 
CORPORATE DEVELOPMENT FROM SOME 
BIG BANK OR SOMETHING. 
>> WANTS TO GRAB COFFEE. 
>> YEAH. 
FOR US WE'RE PRETTY CLEAR WE'RE 
NEVER GOING TO SELL THIS 
COMPANY. 
THE REASON FOR THAT IS WE THINK 
WE CAN HAVE SO BIG OF AN IMPACT 
AND THE ENERGY IS JUST RIPE FOR 
DISRUPTION AND I PERSONALLY 
DON'T LIKE STARTING COMPANIES. 
IT'S REALLY HARD LIKE, YOU KNOW 
HOW IT IS. 
IT'S VERY GRINDING AND NO ONE 
WANTS TO WORK WITH YOU OR GIVE 
YOU MONEY. 
YOU GET 1,000 NO'S. 
IT KIND OF SUCKS. 
SO I LIKE RUNNING COMPANIES. 
BREX IS DOING REALLY WELL. 
SO I WANT TO KEEP RUNNING IT IN 
A LONG TIME. 
>> MAYBE IN SIX OR SEVEN YEARS 
WE'LL SEE A BREX IPO? 
>> MAYBE. 
>> WHAT'S THE LONG VISION FOR 
CLEAR BANK? 
>> IT'S THE SAME THING. 
IT'S SUCH A GRIND AND WE JUST 
FOUND SUCH GOOD PRODUCT MARKET 
FIT. 
I MEAN I HAVE WORKED ON SO MANY 
PROJECTS WITH SO MUCH EFFORT 
THAT DIDN'T WORK FOR SO LONG IN 
MY CAREER, WHEN YOU HAVE 
SOMETHING THAT'S REALLY 
WORKING, YOU'RE LIKE OKAY, 
LET'S TAKE THIS ALL THE WAY TO 
THE MOON. 
SO I THINK WE'RE JUST GOING TO 
KEEP TRYING TO BE INNOVATIVE 
AND GROW THIS THING OUT. 
I THINK THERE'S A LOT OF 
FOUNDERS THAT COULD USE THE 
PRODUCT. 
>> ANDREW, YOUR CO-FOUNDER DID 
COMPARE CLEAR BANK TO SOFT BANK 
AT ONE POINT. 
IN AN INTERVIEW WITH ME HE SAID 
WE WANT TO RAISE BILLIONS AND 
BILLIONS. 
WE WANT TO BE LIKE SOFT BANK. 
IS THAT REALLY WHAT YOU WANT TO 
BE LIKE? 
>> NO. 
I THINK HE WAS SAYING SOFT BANK 
HAS TRANSFORMED THESE GROWTH 
ROUNDS AND CERTAINLY IN MANY 
WAYS REPLACED WHAT WAS EARLIER 
STAGED IPOs. 
IN OUR MINDS LIKE THERE IS JUST 
HALF OF THE GDP OF AMERICA IS 
APPROACH DO USED  PRODUCED ON
SNBs. 
BANKS DIDN'T TAKE PERSONAL 
GUARANTIES TO BE MEAN. 
THEY DIDN'T HAVE THE TOOLS AND 
DATA SETS AND AUTOMATION TO 
UNDERWRITE THIS IN A WAY THAT 
ACTUALLY MADE SENSE. 
SO IF WE'VE CRACKED THAT NUT, 
WE THINK WE HAVE A MASSIVE 
MARKET NOT ONLY IN AMERICA, BUT 
GLOBALLY BECAUSE IF YOU THINK 
IT'S HARD TO GET FUNDING HERE 
IT, IS WAY HARDER -- YOU KNOW 
THIS -- EVERYWHERE ELSE ON THE 
PLANET. 
>> YEAH. 
BRAZIL IS REALLY HARD. 
>> ONE THING I WANT TO ASK, 
WE'RE ALMOST OUT OF TIME, BUT 
YOU MENTIONED SNBs. 
BREX RECENTLY OPENED A 
RESTAURANT. 
I'M TOLD IT WAS BECAUSE YOU 
WANTED TO UNDERSTAND BETTER HOW 
IS THAT REALLY THE THINKING 
BEHIND OPENING A RESTAURANT? 
HELP US UNDERSTAND WHY YOU 
THOUGHT THAT WAS SOMETHING YOU 
NEEDED TO DO. 
>> I THINK THE RESTAURANT HAD 
MULTIPLE REASONS. 
I THINK THE FIRST REASON WAS WE 
HAVE OUR MEMBERS LOUNGE RIGHT 
ON TOP OF IT. 
>> YEAH. 
>> YOU KNOW, WE WANTED TO DO 
SOMETHING FOR THAT COMMUNITY OF 
SOUTH PARK AND THAT WAS A 
RESTAURANT EVERYONE LOVED, BUT 
IT HAPPENS TO BE IN THE VENTURE 
CAPITAL NERVE SYSTEM OF SAN 
FRANCISCO WHICH IS SUPER 
RELEVANT TO OUR BUSINESS, 
RIGHT? 
SO WHEN WE WERE FOUNDERS, WE 
WENT TO SOUTH PARK ALL THE TIME 
AND LIKE HAD MEETINGS THERE ALL 
THE TIME. 
SO IT MADE A LOT OF BUSINESS 
SENSE AS WELL AND I THINK A 
BONUS IS THAT AS WE EXPAND TO 
MORE VERTICALS, WE GET TO 
UNDERSTAND HOW AN SNB OPERATES. 
SO WE CAN SEE WHAT ARE THE 
STRUGGLES AND ISSUES AND WE GET 
TO LEARN FROM IT. 
>> IS IT FAIR TO SAY PERHAPS 
YOU'VE RAISED SO MUCH CAPITAL, 
YOU'RE KIND OF THROWING IT 
AROUND AND ABLE TO OPEN A 
RESTAURANT? 
THAT'S CERTAINLY OUT OF THE 
NORM FOR A FINTECH STARTUP? 
>> A LOT OF TIMES PEOPLE ARE 
LIKE CREDIT CARD JUST FOR 
STARTUPS. 
THEY GO OUT OF BUSINESS. 
THAT'S SO DUMB AND THEN OH, 
BILLBOARDS. 
THEY'RE BLOWING MONEY. 
THAT'S SO DUMB. 
>> SO WE'RE GOING TO SEE A 
BUNCH OF STARTUPS OPENING 
RESTAURANTS? 
>> I THINK PEOPLE WILL SEE THE 
RESTAURANT IS ALWAYS BLOWING 
MONEY AS THEY THOUGHT THE OTHER 
THINGS WERE AS WELL. 
>> THANK YOU BOTH SO MUCH. 
IT WAS A GREAT CONVERSATION. 
>> THANK YOU SO MUCH. 
>> THANK YOU. 
>> AWESOME JOB. 
>> ON THE Q AND A STAGE AT 4:15 
WE'LL HAVE GETTING INTO FIN 
TECH WITH ENRIQUE AND MICHELLE 
ROMANO AND ANGELA STRANGE. 
IF YOU HAVE NOT GOTTEN ENOUGH 
OF ENRIQUE, THAT'S WHERE YOU 
NEED TO GO. 
IN THE MEANTIME WE ARE GOING TO 
BE TALKING ABOUT BEEF OR NOT 
BEEF. 
PLEASE WELCOME TO THE STAGE 
FROM IMPOSSIBLE FOODS FOUNDER 
AND CEO PATRICK BROWN AND YOUR 
MODERATOR JOHN SHEBER. 
WARM WELCOME, PLEASE. 
>> THANK YOU FOR STICKING 
AROUND. 
THERE ARE ANY NUMBER OF THINGS 
WE CAN TALK ABOUT, BUT I THINK 
THE FIRST THING TO TALK ABOUT 
IS REALLY WHY YOU'RE DOING 
THIS. 
YOU HAD AN INCREDIBLY 
IMPRESSIVE CAREER AS A 
GENETICIST AND A PROFESSOR AT 
STANFORD. 
NOW YOU'RE TAKING ON THE MEAT 
INDUSTRY. 
WHY? 
>> PRETTY SIMPLE REASON. 
ABOUT 10 YEARS AGO WHEN I WAS 
TRYING TO FIGURE OUT WHAT I 
COULD DO NEXT THAT WOULD HAVE 
THE BIGGEST POSITIVE IMPACT ON 
THE WORLD, I VERY QUICKLY 
REALIZED THAT BY FAR THE MOST 
DESTRUCTIVE TECHNOLOGY AND THE 
MOST DESTRUCTIVE INDUSTRY ON 
EARTH IS THE USE OF ANIMALS AS 
A FOOD PRODUCTION TECHNOLOGY 
AND I WAS IN RETROSPECT KIND OF 
EMBARRASSED I DIDN'T ALREADY 
REALIZE THIS, BUT AT THE TIME 
THE U.N. ENVIRONMENTAL PROGRAM 
HAD PUBLISHED A MONOGRAPH THAT 
CAME TO THAT CONCLUSION AND AT 
THIS POINT I WOULD SAY THERE'S 
PROBABLY A SIGNIFICANT MAJORITY 
OF ALL ENVIRONMENTAL SCIENTISTS 
WOULD SAY THE EXACT SAME THING. 
THIS IS BY FAR THE MOST 
DESTRUCTIVE TECHNOLOGY ON 
EARTH. 
HUGE SOURCE OF GREENHOUSE GAS 
EMISSIONS, BIGGEST USER OF 
WATER OF ANY INDUSTRY ON EARTH, 
BIGGEST POLLUTER OF WATER BY 
FAR OF ANY INDUSTRY ON EARTH, 
OCCUPIES A LAND FOOTPRINT 
THAT'S APPROXIMATELY HALF OF 
EARTH'S ENTIRE LAND AREA, 
BIGGER THAN NORTH AMERICA, 
SOUTH AMERICA, AUSTRALIA AND 
EUROPE COMBINED, LAND ACTIVELY 
IN USE EVERY YEAR RAISING 
ANIMALS FOR FOOD AT A 
TREMENDOUS COST TO 
BIODIVERSITY. 
IT IS OVERWHELMINGLY THE 
BIGGEST AND VIRTUALLY THE ONLY 
DRIVER OF A CATASTROPHIC 
MELTDOWN BIODIVERSITY THAT 
WE'RE EXPERIENCING RIGHT NOW 
WHERE THE TOTAL NUMBER OF 
LIVING INDIVIDUALS OF MA 
MAMMALSS, BIRDS, REPTILES, 
PROBABLY 40% TOTAL WILD ANIMALS 
LIVING ON EARTH IMPAIRED TO 20 
YEARS AGO AND IT'S VERY CLEAR 
IT'S VIRTUALLY ENTIRELY DUE TO 
THE USE OF ANIMALS IN THE FOOD 
SYSTEM. 
I JUST WANT TO SAY ONE MORE 
THING. 
THE PROBLEM IS PEOPLE ARE NOT 
GOING TO STOP WANTING TO EAT 
THESE FOODS. 
THAT MEANT YOU HAD TO FIGURE 
OUT A WAY TO MAKE FOODS THAT 
DELIVERED EVERYTHING THOSE 
CONSUMERS WANT. 
>> THERE WAS AN ARTICLE IN THE 
NEW YORK TIMES TODAY WHERE 
SOMEONE WAS TALKING ABOUT THE 
MEAT INDUSTRY AND AN EXPERT WAS 
QUOTED SAYING IF EVERYONE GAVE 
UP HAMBURGERS TOMORROW, THE 
SAME NUMBER OF COWS WOULD 
STILLING RAISED AND FED. 
SO WHY START WITH GROUND BEEF 
IF GROUND BEEF REALLY ISN'T 
SORT OF THE DRIVER OF WHAT 
PEOPLE ARE ACTUALLY SORT OF 
CONSUMING MEAT FOR? 
>> WELL, I DIDN'T READ THE 
ARTICLE, BUT I'M SURPRISED BY 
THAT CONCLUSION BECAUSE MORE 
THAN HALF OF ALL THE BEEF 
PRODUCED IN THE U.S. TODAY IS 
SOLD AS GROUND BEEF AND ABOUT 
25% OF THE BEEF PRODUCED IN THE 
U.S. CAN'T BE SOLD IN ANY FORM 
OTHER THAN GROUND BEEF BECAUSE 
IT'S BASICALLY TOO UNAPPEALING 
AS A WHOLE CUT. 
>> RIGHT. 
>> SO, IN FACT, GROUND BEEF 
SALES ARE A VERY IMPORTANT 
COMPONENT OF THE BUSINESS MODEL 
OF THE BEEF INDUSTRY AND THE 
GOAL THAT WE HAVE IS TO REDUCE 
AND ELIMINATE THE ECONOMIC 
INCENTIVE FOR COVERING THE 
ENTIRE FRICKING PLANET WITH 
COWS. 
RIGHT NOW THERE'S 10 TIMES MORE 
COW BIOMASS ON EARTH THAN THE 
TOTAL BIOMASS OF EVERY WILD 
LAND VERTEBRATE THAT'S STILL 
ALIVE. 
SO THIS IS WHAT WE'RE DOING 
RIGHT NOW. 
OUR GOAL IS TO BASICALLY 
ELIMINATE THE ECONOMIC 
INCENTIVE TO DO THAT ANYMORE, 
TO KEEP TEARING DOWN THE AMAZON 
TO CREATE MORE ROOM FOR GROWING 
COWS BECAUSE DEMAND GOES UP. 
THE EARTH'S NOT GETTING BIGGER. 
THE ONLY WAY TO PRODUCE MORE 
COWS IS TO DEEP FOREST THE 
AMAZON. 
SO THAT SMOKE YOU SEE COMING 
OUT OF THE AMAZON IS THE 
SECONDHAND SMOKE FROM YOUR 
BURGER. 
I THINK THIS IS A VERY GOOD 
STRATEGY AND I WOULD EVEN SAY 
BECAUSE THE BEEF INDUSTRY HAS 
PRETTY CRAPPY ECONOMICS, I 
DON'T THINK IT REQUIRES A HUGE 
AMOUNT OF DISRUPTION TO THEIR 
BUSINESS AND TO THEIR ECONOMICS 
TO SIGNIFICANTLY REDUCE THE 
INCENTIVE TO KEEP GROWING THE 
COW HERD SIZE. 
>> BUT THE ISSUE THERE IS THAT 
GROUND BEEF IS VERY, VERY CHEAP 
AS WELL. 
CAN YOU COMPETE ON A COST BASIS 
WITH THIS STUFF AT SOME POINT 
AND HOW DO YOU DO THAT? 
>> OH, ABSOLUTELY, ABSOLUTELY. 
I THINK THE STARTING POINT IS 
TO REALIZE THAT THERE'S A 
STRUCTURAL ADVANTAGE TO THE WAY 
THAT WE'RE DOING THIS AND IT'S 
REPRESENTED IN THE FACT THAT 
FOR US TO PRODUCE A BURGER AND 
WE HAVE PUBLICLY AVAILABLE 
AUDIT ON THIS REQUIRES LOW 
SINGLE DIGIT FRACTION OF THE 
LAND AREA LIKE CONSIDERABLY 
LESS THAN 1/25 OF THE LAND AREA 
TO PRODUCE A COW, ABOUT 1/8 THE 
WATER IN PUT, 1/12 THE 
FERTILIZER INPUT AND BECAUSE 
YOU NEED SO MUCH LAND AND WATER 
AND RESOURCES, ALSO LESS LABOR 
INPUT. 
THAT MEANS THE FUNDAMENTAL 
ECONOMICS ARE VASTLY SUPERIOR. 
THE ONLY THING WE DON'T HAVE 
THAT THEY HAVE IS SCALE AND A 
PREEXISTING INFRASTRUCTURE, BUT 
AT SCALE THERE'S JUST NO 
QUESTION. 
>> THAT'S A PRETTY BIG BENEFIT 
FOR THE INDUSTRY. 
HOW MUCH DOES IT COST YOU TO 
MAKE AN GROUND IMPOSSIBLE MEAT 
VERSUS THE SAME SIZE OF BURGER 
MEAT? 
>> WELL, I CAN'T GIVE YOU THE 
EXACT DATA BECAUSE IT'S KIND OF 
CONFIDENTIAL INFORMATION. 
I WOULD, BUT MY CFO WOULD KILL 
ME. 
I CAN SAY BASICALLY OUR PRODUCT 
IS BEING SOLD IN LOTS OF MASS 
MARKETPLACES, BURGER KING, 
WHITE  CASTLE, TONS OF 
THESEBURG KINGS THAT SELL AT A 
PRICE AFFORDABLE TO CONSUMERS. 
IT'S GREAT FOR THEIR BUSINESS. 
IT'S HUGELY PROFITABLE FOR THEM 
AND WE AREN'T LOSING MONEY ON 
THOSE SALES EITHER. 
SO YOU CAN DRAW YOUR OWN 
CONCLUSIONS AND WE'RE AT A VERY 
EARLY STAGE. 
THREE YEARS AGO WE WERE 
OPERATING OUT OF EFFECTIVELY A 
GARAGE. 
>> RIGHT. 
>> SO WE'VE GOTTEN OUR 
ECONOMICS TO THE POINT WHERE 
WE'RE COMPETING IN THIS MASS 
MARKET, YOU KNOW, LOW COST 
BURGER MARKET AND WE'VE ONLY AT 
A VERY EARLY STAGE AND BRINGING 
OUR COSTS, OPTIMIZING OUR 
COSTS. 
>> SPEAKING OF FAST FOOD, 
EARLIER THIS WEEK ON MONDAY 
McDONALD'S LAUNCHED THEIR PILOT 
TEST WITH THE PLT, THE PLANT, 
LETTUCE, TOMATO BURGER USING 
BEYOND MEATS STUFF. 
DOES THAT PRECLUDE YOU NOW FROM 
SELLING TO McDONALD'S OR HOW 
DOES THAT SORT OF PITCH WORK 
WITH -- 
>> OVER, NO. 
I DON'T WANT TO TALK ABOUT LIKE 
THE DYNAMICS OF THAT BUSINESS, 
BUT I GUESS WHAT I'LL SAY IS 
THE WAY WE THINK ABOUT THIS 
PROBLEM, FIRST THE ONLY 
COMPETITOR WE CARE ABOUT IS THE 
INCUMBENT INDUSTRY WHICH RIGHT 
NOW OWNS 99% OF THE MARKET. 
ALL THE PLANT-BASED PRODUCERS 
PUT TOGETHER ARE LIKE 1%. 
SO IT WOULD BE RIDICULOUS FOR 
US TO BE TRYING TO COMPETE IN 
THAT SPACE, BUT SECONDLY, THE 
WAY THAT WE THINK ABOUT THIS IS 
OUR WHOLE FOCUS IS ON JUST 
MAKING AWESOME PRODUCTS THAT 
DON'T JUST -- WE'RE NOT TRYING 
TO OUTPERFORM VEGGIE BURGERS OR 
TRYING TO OUTPERFORM THE COW. 
IF WE FOCUS ON THAT AND PRODUCE 
THE MOST DELICIOUS, HEALTHIEST, 
AFFORDABLE GROUND BEEF ON THE 
MARKET, I DON'T THINK WE'LL 
HAVE TO BEG McDONALD'S OR 
ANYONE ELSE TO, YOU KNOW, PUT 
IT ON THEIR MENU. 
>> RIGHT. 
SPEAKING OF THE PRODUCT 
PORTFOLIO, I WAS IN YOUR 
OFFICES YESTERDAY AND I TRIED 
SOME OF THE FRIED CHICKEN THAT 
YOU ALL WERE WORKING ON OUT 
THERE. 
I WAS WONDERING WHEN YOU THINK 
ABOUT THE PRODUCT PORTFOLIO AND 
WHAT COMES NEXT, HOW DO YOU 
MAKE THAT CALCULUS ABOUT WHAT 
THE ROADMAP SHOULD LOOK LIKE 
GIVEN HOW MUCH DEMAND YOU HAVE 
FOR THE GROUND MEAT SUBSTITUTE 
RIGHT NOW? 
>> YEAH. 
THAT'S A VERY COMPLICATED 
QUESTION. 
IT'S A MULTI-DIMENSIONAL 
OPTIMIZATION PROBLEM. 
FIRST OF ALL, WE ARE TRYING TO 
CHOOSE PRODUCTS -- OUR GOAL IS 
TO, YOU KNOW, SOLVE THE BIGGEST 
ENVIRONMENTAL PROBLEM THAT OUR 
PLANET HAS EVER FACED, WHICH IS 
THE CATASTROPHIC IMPACT OF THIS 
INDUSTRY, AND SO THAT REQUIRES 
US, FIRST OF ALL, TO BE ABLE TO 
MAKE ANY PRODUCT THAT IS 
CURRENTLY PROVIDING ECONOMIC 
INCENTIVE FOR THIS CATASTROPHE, 
BUT WE ALSO CHOSE BEEF 
DELIBERATELY BECAUSE BEEF 
PRODUCTION IS BY FAR HAS THE 
MOST DESTRUCTIVE IMPACT ON THE 
ENVIRONMENT. 
THAT'S WHY WE'RE PUSHING ON 
THAT RIGHT NOW. 
MEANWHILE OUR FUTURE IS IN OUR 
R AND D OPERATION BASICALLY. 
WHAT DETERMINES OUR SUCCESS IS, 
LIKE I SAY, IS NOT -- WE HAVE 
AWESOME TEAMS, SALES, 
MARKETING, FINANCIAL, EVERY 
ASPECT OF BUSINESS AND WE HAVE 
TO BE GREAT AT MANUFACTURING, 
ALL THOSE THINGS, BUT 
ULTIMATELY IT COMES DOWN TO WE 
HAVE TO MAKE PRODUCTS THAT 
CONSUMERS PREFER TO THE 
PRODUCTS THAT COME FROM ANIMALS 
FOR THE PURPOSES FOR WHICH 
THEY'RE CURRENTLY USING THE AN 
A MEDICAL  ANIMAL PRODUCT. 
SO IT HAS TO IN THAT NICHE DO A 
BETTER JOB. 
THAT'S WHY WE HAVE 120 PEOPLE 
ON OUR R AND D TEAM. 
WE'RE GOING TO APPROXIMATELY 
DOUBLE IT AND THESE ARE SOME OF 
THE BEST SCIENTISTS IN THE 
WORLD. 
THIS IS A REALLY HIGH PROBLEM 
AND IT'S SO HIGH STAKES, BUT WE 
WANT TO HAVE THE KNOW-HOW AND 
TECHNOLOGY PLATFORM TO BE ABLE 
TO MAKE THIS ENTIRE GAMUT OF 
PRODUCTS AND THEN IT COMES DOWN 
TO OTHER FACTORS THAT JUST 
INCLUDES, YOU KNOW, OUR 
BANDWIDTH FOR SCALING 
MANUFACTURING AND JUST SCALING 
THE TEAM AND SO FORTH. 
>> WHAT'S THE THORNIEST PROBLEM 
THAT THE R AND D TEAM IS 
WRESTLING WITH RIGHT NOW? 
>> WOW, I GUESS WHAT I'LL SAY 
IS WE FIGURED OUT I WOULD SAY 
LIKE 95% OF THE FLAVOR 
CHEMISTRY OF MEAT AND ANIMAL 
TISSUES RELATIVELY EARLY ON AND 
A LOT OF IT COMES DOWN TO, YOU 
KNOW, HEEM AS THE CATALYST THAT 
TURNS THE PRECURSORS AND 
VITAMINS AND STUFF LIKE THAT 
INTO THE UNIQUE EXPLOSION WHERE 
WE'RE GOING WITH MEAT AND THE 
BLOODY FLAVOR AND ALL THAT 
STUFF, BUT THERE'S STILL A TON 
TO LEARN THERE, TOO, ABOUT IT 
BECAUSE WE DON'T WANT TO JUST 
MAKE SOMETHING THAT IS A GOOD 
VERSION OF BEEF FLAVOR. 
WE WANT TO FIGURE OUT WHAT'S 
THE ABSOLUTE PINNACLE THAT WE 
CAN DELIVER THAT OUTPERFORMS 
ANYTHING A COW CAN DO AND A 
BUNCH OF OTHER STUFF. 
SO THERE'S TONS MORE WORK 
THERE. 
WE ARE LOOKING AT -- AND 
TEXTURE IS A WHOLE OTHER ISSUE 
AND IT'S EQUALLY CHALLENGING 
AND WE HAVE A LOT OF PEOPLE 
WORKING ON, YOU KNOW, 
DEVELOPING MATERIALS THAT ARE 
FROM SUSTAINABLE PLANT SOURCES 
THAT HAVE A GREAT NUTRITION 
PROFILE AND HAVE THE PHYSICAL 
PROPERTIES AND, YOU KNOW, 
JUICINESS, TEXTURE, A SYMMETRY 
AND STUFF LIKE THAT OF ALL 
THESE ANIMAL TISSUES. 
>> WHEN YOU SAY JUICINESS AND 
TEXTURE, IS THAT TRYING TO GET 
AT SOMETHING THAT APPROXIMATES 
A MUSCLE MEAT LIKE MORE LIKE A 
CUT OF STEAK? 
>> OH, SURE. 
WE'VE MADE STEAK PROTOTYPES. 
WE'RE NOT NEAR SCALING THEM, 
BUT ULTIMATELY I THINK THAT'S 
SOMETHING FOR US TO REALLY TAKE 
AWAY THE ECONOMIC INCENTIVE FOR 
GROWING COWS. 
WE HAVE DEFINITELY HAVE TO HAVE 
SOMETHING THAT CAN COMPETE 
AGAINST COW DERIVED STEAK WELL. 
SO THAT'S -- BUT THERE'S A TON 
OF THESE PROBLEMS TO SOLVE AND 
THE FACT IS THEY'RE ALL HARD. 
AND THEN THERE'S -- BUT THEY'RE 
ALL SOLVABLE. 
>> RIGHT. 
>> I KNEW THAT WHEN I STARTED 
AND I KNOW IT EVEN MORE FIRMLY 
NOW, THAT THESE ARE HARD 
PROBLEMS AND THEY ARE SOLVABLE 
PROBLEMS. 
WE'RE ALSO LOOKING AT OUR 
SUPPLY CHAIN LIKE OUR GOAL, IF 
WE'RE SUCCESSFUL IN, YOU KNOW, 
10, 15 YEARS, WE WILL BE 
RESPONSIBLE FOR A SUBSTANTIAL 
FRACTION OF THE WORLD'S OR NOT 
IMPOSSIBLE FOODS, BUT US AND 
THE PEOPLE WE ENABLE TO FOOD 
SUPPLY WHICH MEANS WE HAVE TO 
REALLY THINK ABOUT FOOD 
SECURITY. 
WE HAVE TO THINK ABOUT WHAT 
PLANTS SHOULD WE GET PROTEINS 
FROM AND HOW DO WE OPTIMIZE, 
HOW DO WE CREATE A SYSTEM THAT 
IS OPTIMIZED FOR FOOD SECURITY, 
OPTIMIZED FOR, YOU KNOW, 
THINKING ABOUT COMMUNITY SCALE 
AND STUFF LIKE THAT? 
AND WE HAVE WORK GOING ON ON 
THAT BECAUSE THAT'S SUCH A LONG 
LEAD TIME. 
WE NEED TO BE WORKING ON THAT 
NOW. 
>> THERE WAS A LOT TO UNPACK IN 
THAT ANSWER AND THERE ARE SORT 
OF THREE THINGS I'D LIKE TO 
TOUCH ON. 
YOU MENTIONED NUTRITION, MAKING 
A PRODUCT THAT'S MORE 
NUTRITION. 
EVERY TIME I TOLD SOMEONE I WAS 
GOING TO BE TALKING TO YOU THEY 
WANTED ME TO ASK YOU ABOUT 
WHETHER THE PRODUCT IS 
HEALTHIER THAN A BEEF BURGER 
AND THE PUSH NOW IS THAT IT'S 
NOT HEALTHIER AT ALL THAN A 
BEEF BURGER. 
SO HOW DO YOU RESPOND TO 
CRITICISM ABOUT THE FACT THAT 
THE IMPOSSIBLE BURGER IS NOT 
GOOD FOR YOU? 
>> WELL, WE BASICALLY MAKE ALL 
OUR NUTRITION INFORMATION AND 
EVERYTHING WE KNOW ABOUT OUR 
INGREDIENTS FREELY AVAILABLE TO 
ANYONE ON OUR WEBSITE AND, YOU 
KNOW, ANSWER ANY QUESTIONS 
ABOUT IT AND THEN YOU CAN 
DECIDE FOR YOURSELF, BUT I 
WOULD SAY THAT ONE OF OUR CORE 
PRINCIPLES IS THAT WE ARE NEVER 
GOING TO SELL OUR PRODUCT 
UNLESS WE HAVE CRITICALLY 
REVIEWED ALL THE DATA AND 
BELIEVE THAT IT IS BETTER FOR 
THE CONSUMER THAN WHAT IT 
REPLACES. 
WE ARE NOT MAKING HEALTH CLAIMS 
OF THE PRODUCT, BUT WE 
INTERNALLY HAVE A VERY LIE  
HIGH STANDARD FOR THAT. 
SO OUR PRODUCT MATCHES THE 
PROTEIN. 
MATCHES AND SLIGHTLY EXCEEDS 
THE PROTEIN QUALITY IN TERMS OF 
DIGESTIBILITY AND AMINO ACID 
CONTENT. 
IT'S LOWER SATURATED FAT. 
IT HAS THE SAME IRON THAT RED 
MEAT HAS THAT MAKES IT A 
FEELING FOR PEOPLE THAT NEED A 
GOOD IRON SOURCE. 
IT HAS THE SAME MICRONUTRIENT 
PROFILE. 
AND WE'RE CONSTANTLY OPTIMIZING 
THAT. 
SO I MEAN CONSUMERS HAVE TO 
DECIDE FOR THEIRSELVES, BUT I 
CAN, YOU KNOW, SAY WITH 
CONFIDENCE THAT THIS PRODUCT, 
SOMEONE WHO IS CURRENTLY EATING 
THE COW PRODUCT IS NO WORSE OFF 
EATING OUR PRODUCT AND IN MANY 
WAYS BETTER OFF. 
THE THING TO KEEP IN MIND, 
ALSO, IS WE AREN'T TRYING TO 
MAKE THE FOOD TO FULFILL ALL 
YOUR DIETARY NEEDS IN ONE 
BURGER. 
WE'RE TRYING TO MAKE A PRODUCT 
THAT WILL BE BETTER FOR THE 
CONSUMER IN THAT NICHE IN WHICH 
THE BURGER OCCUPIES WHICH WILL 
NOT BE REPLACED BY A KALE SALAD 
OR, YOU KNOW, WHATEVER. 
>> RIGHT. 
>> IT DOES A BETTER JOB OF 
DELIVERING NUTRITION TO THE 
CONSUMER FOR A PRODUCT THAT HAS 
TO PERFORM AS A BURGER. 
>> NOW YOU'VE ALSO SAID YOU 
TALKED ABOUT THE NEED TO SCALE 
DRAMATICALLY ON THE SUPPLY 
CHAIN SIDE. 
YOU'RE ADDING MORE R AND D 
FOLKS. 
YOU SAID YOU PLAN TO TAKE A 
DOUBLE DIGIT PORTION OF THE 
BEEF MARKET WITHIN FIVE YEARS 
AND PUSH THAT INDUSTRY INTO A 
DEATH SPIRAL. 
IT SEEMS LIKE YOU WOULD NEED A 
LOT OF CASH TO DO THAT. 
THE OTHER THING IS SO DOES THE 
NEXT FINANCING EVENT COME FROM 
A PUBLIC OFFERING? 
ARE YOU LOOKING TO IPO? 
IS THAT GOING TO THAN SOON OR 
HOW DO YOU GET THE MONEY TO 
ACHIEVE THESE GOALS? 
>> FIRST OF ALL, YOU'RE RIGHT. 
IT'S A HUGELY AMBITIOUS GOAL. 
IT WILL REQUIRE A LOT OF 
RESOURCES AND SO FORTH AND 
WE'LL HAVE TO GET THOSE 
RESOURCES EITHER FROM INVESTORS 
OR FROM GETTING OUR PROFIT 
MARGINS TO THE POINT WHERE WE 
CAN SCALE IT THE VELOCITY THAT 
WE WANT TO SCALE WITH THE 
PROFITS WE MAKE FROM OUR 
BUSINESS WHICH IT WILL BE A 
WHILE BEFORE WE'RE AT THAT 
POINT. 
SO WE'LL DEFINITELY HAVE TO 
RAISE MORE MONEY. 
I WOULD SAY WE ARE NOT LOOKING 
IN THE NEAR TERM FUTURE TOWARD 
AN IPO AS ANYONE HERE PROBABLY 
KNOWS. 
THERE'S A LOT OF COMPLICATIONS 
THAT COME WITH THAT. 
WE HAVE OUR HANDS FULL GROWING 
OUR BUSINESS, DOING OUR CORE 
JOB AND WE HAVE GREAT INVESTORS 
AND WE HAVE A LOT OF PRIVATE 
INVESTORS WHO ARE WILLING TO 
BET US ON, SO ON AND SO FORTH. 
AT THIS POINT IT'S NOT 
SOMETHING THAT WE NEED AND WE 
CAN JUST TAPE  TAKE OUR TIME 
ABOUT IT BASICALLY. 
>> SO WHEN YOU THINK ABOUT WHAT 
COMES NEXT ON THE PRODUCT 
ROADMAP, IF YOU LOOK OUT FIVE 
YEARS, WHAT DOES THE IMPOSSIBLE 
FOODS PRODUCT PORTFOLIO LOOK 
LIKE? 
>> I'M NOT BEING EVASIVE 
BECAUSE, YOU KNOW, THAT'S A 
VERY COMPLICATED QUESTION AND 
IT DEPENDS ON A LOT OF THINGS 
THAT, YOU KNOW, HOW THINGS 
PROCEED IN THE FUTURE. 
IN THE R AND D SPACE WE'RE 
BUILDING THE CAPABILITY AND, 
YOU KNOW, ADVANCED PROTOTYPES 
FOR A LOT OF PRODUCTS THAT 
WOULD COMPETE IN THAT SPACE, 
BUT THE THING ABOUT SCALING 
RIGHT NOW IS THAT, YOU KNOW, 
SCALING MANUFACTURING IS A BIG 
DEAL. 
IT'S TOTALLY DIFFERENT FROM 
SCALING AN APP OR SOMETHING 
LIKE THAT. 
RIGHT NOW IF WE BELIEVE AS WE 
DO THAT OUR SALES ARE GOING 
TING,  TO BE, YOU KNOW, 10 
TIMES WHAT THEY ARE TODAY OR IN 
18 MONTHS OR SO, THAT MEANS WE 
HAVE TO BE INVESTING RIGHT NOW 
TO GROW OUR MANUFACTURING AND 
SUPPLY CHAIN NOT JUST A LITTLE, 
BUT BY A LOT. 
THAT'S JUST KIND OF -- THAT'S A 
HUGE CHALLENGE JUST FOR OUR 
EXISTING PRODUCT WHERE WE HAVE 
VERY STRONG DEMAND SIGNALS THAT 
WOULD JUSTIFY THAT AND BEING A 
SMALL COMPANY WE WANT TO HAVE 
THE PRODUCTS ALL READY IN R AND 
D, SO WHEN THE OPPORTUNITY 
ARISES, WE HAVE THE RESOURCES 
OR WHEN THERE'S A HUGE MARKET 
OPPORTUNITY THAT, YOU KNOW, 
JUSTIFIES IT, WE'RE READY TO 
GO. 
>> WOULD IT NOT MAKE SENSE IF 
THAT'S THE GOAL TO WORK WITH 
THE TRADITIONAL MEAT INDUSTRY? 
THEY HAVE A BUNCH OF MONEY. 
THEY HAVE A BUNCH OF 
INFRASTRUCTURE. 
THEY KNOW HOW TO SCALE. 
THEY HAVE A LOGISTICS SUPPLY 
CHAIN THAT'S ALREADY WORKED 
OUT. 
IF A COMPANY LIKE THAT WAS TO 
MAKE A CREDIBLE OFFER TO 
ACQUIRE YOU OR ANY COMPANY 
THAT'S GOT SCALE, YOU KNOW, 
MASSIVE AMOUNTS OF MONEY, WOULD 
THAT NOT BE A MORE EFFECTIVE 
ROUTE? 
>> WELL, FIRST OF ALL, IN TERMS 
OF BEING ACQUIRED, I MEAN LET'S 
PUT IT THIS WAY. 
WE AREN'T GOING TO LET 
OURSELVES BE ACQUIRED BY ANYONE 
WHO WE DON'T BELIEVE IS AS 
FIRMLY COMMITTED TO OUR MISSION 
AS WE ARE. 
SO FAR WE HAVEN'T SEEN ANYONE 
WHO MEETS THAT DESCRIPTION AND 
IS WILLING TO PUT ALL THE SAME 
RESOURCES INTO THIS THAT WE 
WOULD GO AFTER AND GET. 
RIGHT NOW I WOULD SAY 
ABSOLUTELY THE CURRENT PLAYERS 
IN THE MEAT INDUSTRY DON'T EVEN 
COME CLOSE TO MEETING THAT BAR. 
SO THAT'S NOT OF INTEREST. 
THEY HAVE WAY TOO MUCH TO LOSE 
FROM OUR SUCCESS AND I DON'T 
THINK THEY WISH US WELL. 
IN TERMS OF WORKING WITH PEOPLE 
CONNECTED TO THAT INDUSTRY, WE 
JUST ENTERED INTO A PARTNERSHIP 
WITH ACTUALLY THE MANUFACTURER 
THAT I THINK IS RESPONSIBLE FOR 
PRODUCING MOST OF McDONALD'S, 
YOU KNOW, BEEF BURGERS. 
A LARGE FRACTION OF THEIR 
BUSINESS IS SERVING THE, YOU 
KNOW, ANIMAL-BASED MEAT MARKET, 
BUT THE INTERESTING THING IS 
THAT THEIR TECHNOLOGY AND THEIR 
BUSINESS MODEL IS AGNOSTIC. 
SO IN OTHER WORDS, IT'S NOT 
LIKE OUR SUCCESS WOULD COME AT 
THE EXPENSE OF SOME OTHER PART 
OF THE BUSINESS.
IF IT'S SOMEONE WHO IS ENGAGED 
IN THE FOOD INDUSTRY OR THE 
MEAT INDUSTRY OR WHATEVER, BUT 
WHERE THERE IS NO SUCH 
CONFLICT, LIKE IT'S ALL UP SIDE 
FOR THEM AND THERE WERE, THEY 
HAVE NO INCENTIVE TO PUT RISK 
ON US, YEAH, THAT'S GREAT. 
>> WE ARE OUT OF TIME. 
I COULD TALK TO YOU ALL 
AFTERNOON ABOUT THIS STUFF. 
IT'S FASCINATING. 
I REALLY APPRECIATE IT, SIR. 
>> THANK YOU. 
>> THANK YOU ALL FOR LISTENING. 
THANK YOU, SIR. 
>> COMPANIES TRANSITION TO 
USING MICROSERVICES IN THEIR 
ARCHITECTURES, MORE APIs ARE 
CREATED ACROSS THE 
ORGANIZATION. 
WITH THIS INCREASE THEY CAN 
BECOME MORE CHALLENGING FOR 
DEVELOPERS TO FIND THESE 
INTERNAL APIs AND REUSE THEM 
WHEN THEY DEVELOP NEW SOFTWARE. 
THAT'S WHERE RAPID APIs FOR 
TEAM TO ENABLE INTERNAL APIs TO 
BE DEVELOPED IN A PRIVATE 
WORKSPACE. 
DEVELOPERS CAN VIEW ITS 
DOCUMENTATION, TEST IT AND 
CONNECT DIRECTLY OR COLLABORATE 
AND SHARE INFORMATION ABOUT THE 
API RIGHT IN RAPID API. 
TEAM MEMBERS CAN ALSO SUBSCRIBE 
TO ANY PUBLIC API AVAILABLE ON 
THE RAPID API MARKETPLACE AND 
THE ENTIRE TEAM CAN SEE AND USE 
THAT SUBSCRIPTION. 
THIS WAY YOU ONLY PACE ONCE FOR 
ANY API YOUR 
TEAM USES. 
GET STARTED TODAY ON 
RAPIDAPI.COM/TEAMS. 
>> OUR TEAMS LOVE BUILDING 
COMPANIES THAT CREATE VALUE AND 
MAKE A DIFFERENCE AS WELL AS 
OUR  INVESTMENTS IN COMPANIES 
SUCH AS 10-CENT AND DEVELOPING 
MEANING RELATIONSHIPS WITH 
COMPANIES. 
>> THEY ARE GLOBAL AND THEY 
UNDERSTAND CUSTOMER BUSINESS, 
THEY HAVE A VERY HELPFUL AND 
SPECIFIC ADVICE THAT THEY CAN 
GIVE TO US. 
>> THEY THINK LIKE 
ENTREPRENEURS. 
THEY'RE A FANTASTIC PARTNER. 
>> OUR BIG VISION IS TO MAKE 
LIFE BETTER FOR 1 BILLION 
PEOPLE AND I BELIEVE THIS IS 
THE PERFECT PARTNER TO HELP US 
ACHIEVE OUR DREAMS. 
>> LADIES AND GENTLEMEN, PLEASE 
WELCOME TECH CRUNCH SENIOR 
WRITER AND YOUR BATTLEFIELD 
HOST, ANTHONY. 
>> I APOLOGIZE. 
I DO NOT HAVE A WORLD FAMOUS 
MOVIE STAR COMING ON BEHIND ME, 
BUT I HAVE SOMETHING ALMOST AS 
GOOD, NO, BETTER, I SCREWED 
THAT UP WHICH IS BETTER, 
AWESOME START, SPECIFICALLY 
FOUR REGULAR BATTLEFIELD 
STARTUPS IN ONE WILDCARD WHICH 
I WILL EXPLAIN WHEN THE TIME 
COMES. 
BEFORE WE DO THAT, THOUGH, I 
HAVE TO BRING OUT OUR EXPERT 
JUDGES. 
FIRST UP WE HAVE SHAHEEN IS 
FARSHI, A PARTNER AT LUX 
CAPITAL, PASSIONATE ABOUT AI, 
ROBOTS, SPACE, CARS, ENGINES, 
PRETTY MUCH ANYTHING IN AN 
EPISODE OF STAR TREK. 
NEXT WE HAVE LINDY FISHBURN, 
MANAGING PARTNER AT BREAKOUT 
VENTURES AND FOUNDER OF 
BREAKOUT LABS, THE SEED STAGE 
PROGRAM FOR HEART SCIENCE. 
SHE'S BEEN INVESTIGATION AT THE 
INTERSECTION OF TECHNOLOGY AND 
BIOLOGY. 
NEXT WE HAVE PETE FLINT, 
MANAGING PARTNER AT NFX. 
PRIOR TO NFX PETE FOUND 
ATRULIA, A LEADING ONLINE REAL 
ESTATE COMPANY. 
NEXT WE HAVE ROGER LEE, A 
GENERAL PARTNER AT BATTERY 
VENTURES. 
BEFORE JOINING BATTERY ROGER 
SPENT 10 YEARS AS AN 
ENTREPRENEUR AND OPERATOR 
FACILITATING THE FIRST EVER 
RETAIL TRANSACTION ON THE 
INTERNET AT AGE 22. 
NEXT WE HAVE KARA NORMAN, A 
PARTNER AT UP FRONT VENTURES. 
BEFORE UP FRONT KARA CO-FOUNDED 
THE CHILDREN'S E COMMERCE 
COMPANY MOON FIRE AND ALSO 
SPENT SEVEN YEARS AT IAC. 
AND LAST BUT NOT LEAST, WE HAVE 
HIRO TAMARA, A PARTNER AT 
ATOMICO FOCUSING ON CONSUMER, 
FINANCIAL TECHNOLOGY AND 
SOFTWARE AND LEADING THEIR 
INVESTMENTS IN LATE STAGE 
VENTURE. 
ALL RIGHT. 
AS HIRO TAKES HIS SEAT, LET'S 
GIVE IT UP FOR ALL OF OUR 
AWESOME JUDGES. 
NOW IT IS TIME TO BRING OUT OUR 
FIRST STOPUP, OMNIVIZ, 
PRESENTING ARE DR. KATHERYN 
CLAYTON AND DR. LYNN CHANG. 
>> CHOLERA HAS NO BORDERS. 
AS A PhD STUDENT IN 
ENGINEERING, I LEARNED THAT IN 
HAITI THERE WAS NO CHOLERA FOR 
100 YEARS UNTIL THE EARTHQUAKE 
HAPPENED IN 2010. 
AFTER THE DISASTER CHOLERA 
SPREAD THROUGH THE COUNTRY 
CREATING OUTBREAKS AND DEATHS 
TO THIS DAY, BUT HAITI IS NOT 
ALONE. 
THERE ARE 5 MILLION CHOLERA 
CASES EVERY YEAR IN 41 
DIFFERENT COUNTRIES AND THIS 
LEADS TO $3 BILLION IN LOSSES 
FROM PRODUCTIVITY, HUMAN COSTS 
AND THERAPY. 
IT TAKES SEVEN DAYS TO DETECT 
FOR CHOLERA IN WATER FROM THE 
TIME A LAB SENDS SOMEBODY OUT 
TO GET THE SAMPLE, BRING IT 
BACK, DO ISOLATION, ENRICHMENT, 
CHANGE REACTION, SEROLOGY TCBS 
STREAKING AND A SECONDARY 
CONFIRMATION. 
THIS IS A LONG TIME. 
IT TAKES EXPERTISE AND IT'S 
EXPENSIVE, BUT WHAT'S WORSE IS 
THAT THIS LEAVES COMMUNITIES 
VULNERABLE TO THE WATER THAT 
THEY DRINK, THAT THEY COOK 
WITH, THAT THEY BATHE IN. 
SO I DECIDED TO SOLVE THIS 
PROBLEM. 
I TOOK MY PhD TECHNOLOGY IN 
RESEARCH AND I STARTED OMNIVIZ 
WHERE WE PUT THE POWER OF THE 
LAB IN THE PALM OF YOUR HAND 
AND WE DO THIS BY DETECTING FOR 
CHOLERA IN WATER ANYWHERE IN 
THE WORLD IN UNDER 30 MINUTES. 
WE'RE REVOLUTIONIZING DISEASE 
DETECTION AND WE DO THIS WITH 
AN EASY TO USE SYSTEM. 
WE HAVE A HARDWARE COMPONENT, 
DISPOSABLE TEST KIT AND A 
SMARTPHONE THAT WORKS 
SEAMLESSLY TOGETHER TO DETECT 
CHOLERA ACCURATELY AND 
AFFORDABLY. 
THE HARDWARE ACTS LIKE THE 
PORTABLE LABORATORY. 
IT HAS A HEATING UNIT IN ORDER 
TO DO DNA AMPLIFICATION AND IT 
HAS MICROSCOPE LENSES TO SEE 
DOWN TO THE NANOPARTICLE LEVEL. 
THE TEST KIT HAS REAGENTS 
INSIDE. 
WHEN THE TEST KIT AND HARDWARE 
COME TOGETHER, WE AMPLIFY FOR 
THE CHOLERA TOXIN GENE. 
WHEN IT'S AMPLIFIED, WE CREATE 
LONGER STRANDS OF DNA AND THE 
SOLUTION BECOMES MORE VISCOUS 
IN NATURE AND THAT'S EXACTLY 
WHAT WE'RE MEASURING IS THE 
CHANGE IN VISCOSITY THAT'S 
OCCURRING. 
WE HAVE TWO PENDING PATENTS FOR 
THIS VISCOSITY TECHNIQUE AND 
WE'RE MORE SENSITIVE THAN THE 
STATUS QUO. 
WE ALSO HAVE THE SMARTPHONE 
COMPONENT. 
WE'RE ABLE TO SEE WHERE AND 
WHEN CHOLERA HAS HAPPENED AND 
NOTIFY PEOPLE SO THAT THEY CAN 
COME IN AND ELIMINATE THE 
OUTBREAK BEFORE IT'S TOO LARGE. 
MOVE TO DEMO. 
IF I'M A FIELD WORKER, I TAKE 
THIS ENTIRE SYSTEM WITH ME OUT 
TO A WATER SOURCE. 
I FILL THE DISPOSABLE TEST KIT 
WITH WATER AND I LAUNCH THE 
SMARTPHONE APP. 
I BEGIN THE TEST. 
IT TELLS ME TO START HEATING 
THE SAMPLE AND DURING HEATING 
THAT'S WHERE DNA AMPLIFICATION 
IS TAKING PLACE AND THAT CHANGE 
IN VISCOSITY IS OCCURRING, BUT 
AFTER THE HEATING WHAT IT SAYS 
IS TO MOVE THAT TEST KIT OVER 
TO AN IMAGING REGION. 
WE TAKE A VIDEO AND WHEN WE'RE 
TAKING THAT VIDEO, WHAT WE'RE 
LOOKING AT IS THE MOVEMENT OF 
WHAT'S HAPPENING INSIDE. 
WE ANALYZE THAT WITH OUR 
PROPRIETARY ALGORITHMS. 
FROM THAT WE'RE ABLE TO SEE THE 
RESULT. 
IN THIS CASE IT'S CLEAN WATER. 
WE CAN ALSO SEE THE GPS 
COORDINATES AND TIMESTAMP. 
MOVE TO WEB PAGE. 
ALSO SOMEBODY CAN GO ONTO THE 
WEB, GO ONTO OUR PORTAL AND SEE 
WHERE AND WHEN CHOLERA IS 
HAPPENING AND HAVE THESE LARGE 
DATA SETS. 
MOVE TO PRESENTATION. 
MOVE TO PRESENTATION. 
THANK YOU. 
WHEN THE SOLUTION IS 
CONTAMINATED, IT LOOKS LIKE 
THIS. 
WE COULDN'T BRING CHOLERA ONTO 
THE TECH CRUNCH STAGE TODAY. 
WHAT'S HAPPENING IN THE 
BACKGROUND IS WE HAVE A 
CONTAMINATED SOLUTION WHERE 
THINGS ARE MOVING VERY, HAVE HE 
SLOW IN NATURE OR A CLEAN 
SOLUTION WHERE THINGS ARE 
MOVING VERY, VERY FAST. 
I INSPIRED MY PhD ADVISERS TO 
JOIN ME AS FOUNDERS OF OMNIVIZ 
AND OUR TEAM TOGETHER BRINGS 
EXPERTISE. RAPID TEST, WHICH 
ARE COMPETITORS, VERY 
INEXPENSIVE BUT HIGHLY 
INACCURATE WHERE CELL CULTURE 
METHODS ARE VERY ACCURATE BUT 
EXPENSIVE THE WE DO A B2B SALES 
MODEL WHERE OUR HARDWARE IS A 
SINGLE TIME PURCHASE AND OUR 
DISPOSABLE TEST KITS CREATE 
RECURRING REVENUE IN THEIR 
SINGLE USE. 
WE HAVE LETTERS OF INTENT FROM 
FIVE OF THE LARGEST COMPANIES 
AND NGOs WITHIN THE CHOLERA 
SPACE. 
BUT WE'RE NOT STOPPING THERE. 
CHOLERA IS A $2 BILLION MARKET 
FOR WATER DETECTION AND 
SURVEILLANCE, BUT THE WORD 
OMNIVIZ MEANS TO SEE 
EVERYTHING. 
SO BY USING OUR NOVEL IP, WE 
CHANGE OUT THE CHEMISTRY IN OUR 
DISPOSABLE TEST KITS AND WE CAN 
DETECT FOR MANY DISEASES IN IN 
DIFFERENT MARKETS. 
OMNIVIZ MOBILIZES THE LAB. 
RAPIDLY DETECTING PATHOGENS, 
SAVING LIVES. 
IF YOU'RE AN NGO, A WATER 
QUALITY EXPERT, OR A RESEARCH 
HOSPITAL, GO TO 
OMNIVIZTECH.COM. 
THANK YOU. 
>> JUDGES? 
>> WELL DONE. 
SO DO THE NGOs AND THE OTHER 
CUSTOMERS THAT YOU'RE SPEAKING 
TO HAVE A BUDGET OR A LINE ITEM 
ALLOCATED TO THESE TYPES OF IN 
FIELD DIAGNOSTIC AND TESTING 
DEVICES? 
>> I WOULD LOVE TO HAND THAT 
QUESTION TO LYNN. 
>> SO YES. 
WE'RE NOT INVENTING A NEW NEED. 
THESE ARE CUSTOMERS THAT ARE 
CURRENTLY ALREADY WATER 
TESTING. 
THEY'RE JUST TAKING A MUMP  
MUCH LONGER TIME COSTING THEM 
MUCH MORE MONEY. 
WE'RE EXPEDITING IT AND ADDING 
THE DATA, SO THIS ALLOWS US TO 
GET IN FRONT OF THE INFECTIOUS 
DISEASE. 
WE CAN ALERT AHEAD OF TIME 
BEFORE ANYONE HAS ACTUALLY 
FALLEN ILL. 
>> WHOEVER FEELS IT IN THEIR 
HEART. 
>> CAN YOU TALK A LITTLE BIT 
MORE ABOUT THE VALIDATION 
TESTING THAT YOU'VE DONE WITH 
YOUR SPECIFICITY IN THE SEVEN-
DAY TEST. 
DO PEOPLE FEEL THE NEED TO DO 
YOURS QUICKLY AND STILL DO THE 
OTHER AS A BACKUP SO THEY HAVE 
TO TAKE FOR BOTH? 
>> WHAT WE DO IS WE WORK WITH 
THE LARGEST CHOLERA HOSPITAL IN 
THE WORLD KNOWN AS ICDDRB 
LOCATED IN DAKKA BACK LA  
BANGLADESH. 
WE WANT OUR STANDARD TO BE 
THEIR STANDARD OF APPROVAL FOR 
OUR TESTS BECAUSE WE KNOW THEY 
ARE THE BEST AND ORIGINAL 
RESEARCHERS WITHIN CHOLERA. 
WE HAVE TESTED OVER 400 TESTS 
TO DATE ON INTENSIVENESS,  
SPECIFICITY AND ACCURACY AND 
SENSITIVITY. 
>> SO INCREDIBLE BUSINESS. 
CAN YOU SHARE A LITTLE BIT 
ABOUT HOW YOU MIGHT EVOLVE INTO 
A PLATFORM INTO THESE OTHER 
AREAS AND JUST WHAT DOES IT 
TAKE AND KIND OF WHAT 
LIMITATIONS DOES KIND OF THE 
CURRENT DEVICE DEFINE FOR 
CHOLERA INHIBIT YOUR ABILITY TO 
MOVE INTO OTHER AREAS? 
>> SO WE'RE STARTING IN WATER 
TESTING. 
CHOLERA, WE WANT TO DO IT RIGHT 
THE FIRST TIME. 
WE WANT TO HELP THESE 
COMMUNITIES, BUT WE CAN SEE WE 
CAN CHANGE CERTAIN COMPONENTS 
IN THE TEST KIT MEANING OUR DNA 
PRIMERS AND WE CAN LOOK FOR 
OTHER DISEASES. 
THE NEXT ONES THAT OUR MARKET 
REALLY POINTS TO IS HEMORRHAGIC 
E. COLI WHICH COMES IN WATER 
AND TYPHOID WITH. 
THOSE IT'S A CHANGE OF THE 
CHEMISTRY. 
FOR ASKING HAVE WE KIND OF 
TESTED THESE OTHER THINGS? 
ABSOLUTELY. 
IN THE LABORATORY SETTING WE'VE 
TESTED QUITE A FEW DISEASES IN 
WATER AND A COUPLE IN BLOOD AS 
WELL. 
SO WE'RE GOING TO BE STARTING 
THERE. 
WHEN WE GO INTO BLOOD, THAT 
WILL BE SEEKING FDA APPROVAL OR 
A CE MARK DEPENDING ON WHERE WE 
GO. 
>> SO CONGRATS ON ALL THE 
SUCCESSFUL IT'S SUPER 
INSPIRING. 
JUST TO FOLLOW UP ON THE FIRST 
QUESTION, HOW MUCH DO ONE OF 
THE NGOs SPEND RIGHT NOW ON 
THESE TYPES OF WATER TREATMENT 
DEVICES AND WHAT'S THE PROCESS 
LIKE TO CONVINCE THEM TO GO 
AWAY FROM ONE OF THE EXISTING 
VENDORS TO YOU GUYS? 
>> A SINGLE TEST NOW FOR 
CHOLERA TAKES $100 AND FOR THE 
LAB EQUIPMENT, THAT'S TENS OF 
THOUSANDS OF DOLLARS AND THEN 
WHEN THEY WANT TO GO OUT INTO 
THE FIELD AND START MEASURING 
WHERE THEY'VE TESTED THESE 
WATER SITES, THAT'S A GIS 
MAPPING SYSTEM AND THAT'S 
$2,000. 
WE'RE AIMING FOR A DISPOSABLE 
TEST KIT OF $10, SO 1/10 THE 
COST PER TEST AND WE'RE AIMING 
FOR A HARDWARE DEVICE AND 
SMARTPHONE TOGETHER TO BE 
$1,000, SO HALF THE PRICE OF A 
MAPPING SYSTEM AND QUITE A BIT 
CHEAPER THAN THE LAB. 
>> DO YOU KNOW HOW MUCH THEY'RE 
SPENDING TODAY? 
PICK ONE OF THE NGOs AND WHAT 
WOULD THE ACTUAL BUDGET BE FOR 
LIKE THE WATER TREATMENT 
PRODUCT? 
>> IN FIELD CHOLERA TESTING. 
>> I'LL HAND THAT TO LYNN AND 
SHE CAN TALK ABOUT NUMBERS 
EVERY MONTH AS WELL. 
>> THOSE NUMBERS CHANGE SO MUCH 
DEPENDING WHAT REGION YOU'RE 
IN. 
LET'S TAKE THE LARGEST CHOLERA 
HOSPITAL IN BANGLADESH. 
BECAUSE THEY HAVE TO TAKE A 
WATER SAMPLE BACK TO THE LAB 
AND IF YOU NO DAKKA, 
TRANSPORTATION THERE IS A 
HEADACHE. 
SO AT MOST THEY TAKE FOUR TO 
SIX SAMPLES A DAY. 
WITH OUR PRODUCT YOU CAN DO A 
LOT MORE. 
IT TAKES ABOUT EIGHT PEOPLE TO 
DO THIS. 
SO YOU'RE NOT ONLY PAYING FOR 
THE TIME, TRANSPORTATION AND 
LAB COSTS, YOU'RE PAYING PEOPLE 
HOURS. 
OFF THE TOP OF MY HEAD, IT'S A 
REALLY DIFFICULT NUMBER BECAUSE 
CHOLERA IS SEASONAL THERE. 
SO THERE'S NO HARD NUMBER, BUT 
WE HAVE CALCULATED THAT FOR A 
SMALL CUSTOMER WE'RE ESTIMATING 
240 TEST KITS PER MONTH. 
FOR A MEDIUM SIZE CUSTOMER THEY 
WOULD BE PURCHASING 2,000 TEST 
KITS PER MONTH AND THESE ARE 
NUMBERS THAT WE'VE ASKED THEM 
AND THEY'VE CONFIRMED. 
>> YOU HAD A QUESTION EARLIER. 
>> YEAH. 
IT'S A GREAT MISSION DRIVEN 
WHAT YOU'RE WORKING ON. 
IT'S REALLY FANTASTIC. 
I JUST WANT TO GET A SENSE OF 
WHAT IS YOUR -- WHEN YOU TALK 
ABOUT BANGLADESH OR DIFFERENT 
MARKETS, WHAT IS THE SALES KIND 
OF JOURNEY THAT YOU HAVE TO GO 
TO TO GET YOUR CUSTOMERS ON 
BOARD? 
HOW LONG DOES THAT TAKE? 
I'D LOVE TO KNOW A LITTLE BIT 
MORE ABOUT THAT. 
>> BECAUSE OUR FOUNDING TEAM IS 
SO HEAVILY ACADEMIC AND ICDDRB 
IS THE MOST RESPECTED RESEARCH 
HOSPITAL IN THE WORLD FOR 
CHOLERA, THEY'VE ACTUALLY 
REACHED OUT TO US. 
SO WE HAVE A PILOT PARTNERSHIP 
AS WELL AS A RESEARCH 
PARTNERSHIP WITH THEM. 
WE ALSO HAVE LETTERS OF INTENT 
WITH THEM. 
SO THIS HAS BEEN AN ONGOING 
RELATIONSHIP. 
I'M ACTUALLY GOING BACK TO 
DAKKA IN ABOUT THREE WEEKS TO 
COMPLETE SOME FINAL STUDIES. 
>> AS YOU GROW IN SCALE, WHEN 
YOU HAVE TO REACH OUT, WHAT DO 
YOU ENVISION THAT MOTION TO 
LOOK LIKE? 
>> ANSWER QUICKLY. 
>> YES. 
>> OKAY. 
SO RIGHT NOW WORD OF MOUTH 
ACADEMIC CONFERENCES REACHING 
OUT TO RFPs, RESPONSE FOR 
PROPOSALS ANOTHER BIG ONE, 
PUTTING PAPERS OUT THERE. 
THEY FOUND A LOT OF OUR JOURNAL 
PAPERS OUT THERE AND SCIENTIFIC 
REVIEWED ARTICLES, SO THAT'S 
BEEN FANTASTIC TO HAVE ON OUR 
SIDE. 
>> NPR FOUND US. 
>> GIVE IT UP FOR OMNIVIZ! 
>> WELL DONE. 
>> WE HAVE ANOTHER STARTUP 
COMING OUT. 
THAT STARTUP IS OZONE AI. 
PRESENTING FOR OZONE AI ARE BEN 
COLEMAN AND LYNDON OH. 
>> FACEBOOK TOLD US THE FUTURE 
IS PRIVATE, BUT THE AVERAGE 
USER HAS NO IDEA WHAT DATA 
THEY'RE GENERATING OR WHO CAN 
SEE IT,LET ALONE HOW TO 
ACTUALLY SECURE THEIR DATA. 
DATA HARVESTERS LIKE FACEBOOK 
AND GOOGLE ARE NEARLY A 
TRILLION DOLLARS A YEAR. 
WHAT IS THEIR PRODUCT? 
IT'S YOU. 
DATA CONTROL SHOULD BE A 
FUNDAMENTAL HUMAN RIGHT WITH 
EQUAL DATA RIGHTS FOR ALL. 
UNTIL NOW WE HAVE SURRENDERED 
THIS RIGHT TO GIANT 
CORPORATIONS. 
I ASKED FACEBOOK FOR MY 
PERSONAL DATA AND I FOUND OUT 
THAT OVER 3,000 COMPANIES ARE 
FOLLOWING ME AND PAYING 
FACEBOOK TO DO THIS AND THIS IS 
HAPPENING FOREVER. 
INTRODUCING OZONE. 
TAKE BACK CONTROL OF YOUR DATA 
AND TAKE BACK THE BILLIONS THAT 
BIG DATA IS EARNING ON YOU. 
HOW DOES IT WORK? 
SIMPLY SYNC YOUR PLATFORMS LIKE 
FACEBOOK AND GOOGLE TO SEE ALL 
OF YOUR PERSONAL DATA ORGANIZED 
IN SIMPLE CATEGORIES FULLY 
ENCRYPTED AND AUTOMIZED. 
SORRY. 
OZONE OFFERS A REVERSE 
SUBSCRIPTION MODEL WHERE 
COMPANIES YOU APPROVE CAN PAY 
TO SUBSCRIBE TO YOUR ANONYMOUS 
DATA AND YOU RECEIVE A PAYMENT 
DIRECTLY INTO YOUR BANK 
ACCOUNT, VENMO OR PAYPAL OF 
YOUR CHOICE. 
ARE OUR TECHNOLOGY ENCRYPTS 
YOUR TECHNOLOGY. 
ONLY YOU HAVE THE PRIVATE KEY. 
ENCRYPTED MACHINE LEARNING 
MATCHES ONLY THE DATA YOU WANT 
TO SHARE WITH OFFERS TARGETED 
FOR YOU. 
WHAT'S IN IT FOR THE 
BUSINESSES? 
PICK A ZIP CODE, AGE, GENDER 
AND CATEGORY AND OZONE WILL 
RETURN PREAPPROVED AUDIENCES 
THAT MATCH YOUR TARGETED 
PROFILE. 
COMPANIES CAN ENGAGE THESE 
AUDIENCES IN TARGETED ADS AND 
DIRECT MARKETING THAT HAS A 
HIGH LIKELIHOOD OF APPROVAL, 
HIGH LIKELIHOOD OF CONVERSION. 
THIS IS ETHICALLY SOURCED DATA 
CONTROLLED BY THE USER. 
WE HAVE A SIMPLE MODEL WHERE 
CONSUMERS GET FREE TOOLS TO 
ORGANIZE AND SECURE THEIR 
PERSONAL DATA AND COMPANIES GET 
PREAPPROVED AUDIENCES AND ONLY 
PAID FOR CONVERSIONS, NOT JUST 
EYEBALLS LIKE ON FACEBOOK. 
WE APPROACH USERS DIRECTLY OFF 
OF FACEBOOK AND HAVE TWO LIVE 
PAYING ENTERPRISE CUSTOMERS. 
WE'RE ALSO BEGINNING A PROOF OF 
CONCEPT WITH A TIER 1 MEDIA 
COMPANY THAT'S LOOKING TO 
ETHICALLY SOURCE CONSUMER DATA 
FROM THEIR 100 MILLION MONTHLY 
UNIQUE USERS. 
MY CO-FOUNDER LYNN AND I MET IN 
THE GOOGLE ALUMNI GROUP. 
WE COME FROM THE BELLY OF THE 
BEAST AS ALUMNI OF GOOGLE AND 
FACEBOOK. 
WE'VE ALSO FOUNDED AND SOLD 
COMPANIES IN THE CYBERSECURITY 
AND MACHINE LEARNING SPACES. 
MOVING ON TO THE DEMO, HERE WE 
SEE LYNDON IS LOGGED INTO THE 
ACCOUNT WHERE WE CAN SEE 
REALTIME EARNINGS. 
WE CAN SEE REALTIME OFFERS AND 
DISCOUNTS BASED ON TARGETED 
ADS. 
FOR EXAMPLE, LYNDON CAN SAVE 
15% ON UNITED AIRLINES BECAUSE 
HE'S CHOSEN TO SHARE HIS TRAVEL 
HISTORY INCLUDING HIS REGULAR 
FLIGHTS BETWEEN SAN FRANCISCO 
AND NEW YORK. 
OZONE USES ENCRYPTED MACHINE 
LEARNING TO MATCH OFFERS WITH 
LYNDON'S ANONYMOUS DATA. 
ON THE BOTTOM WE SEE OFFERS 
THAT ARE MATCHED TO LYNDON'S 
INTERESTS THAT ARE DERIVED FROM 
HIS ANONYMOUS THIRD-PARTY DATA. 
WE'RE ESPECIALLY EXCITED TO 
LAUNCH OUR INTELLIGENCE PORTAL 
WHICH SHOWS LYNDON WHERE HE'S 
SPENDING HIS MONEY AS WELL AS 
WHICH COMPANIES ARE PAYING TO 
SUBSCRIBE TO HIS ANONYMOUS 
DATA. 
ON ACT ACTIVITY FEED WE CAN SEE 
EVERY OZONE ACTIVITY ORGANIZED 
BY AND AND DOLLAR AMOUNT. 
HERE'S WHERE IT GETS REALLY 
EXCITING. 
IN THE ACCOUNT SLIDE WE CAN SEE 
LYNDON'S PROJECTED LIFETIME 
EARNINGS BASED ON HIS OWN DATA 
AS WELL AS EVERY PLATFORM 
THAT'S EITHER SYNCED OR 
UNSYNCKED. 
THERE'S $112,000 THAT 
REPRESENTS LYNDON'S ALTERNATIVE 
RETIREMENT SAVINGS. 
WE'RE WORKING WITH A TIER ONE 
BANK TO CONNECT THIS DIRECTLY 
INTO 401K CONTRIBUTIONS. 
BACK TO THE SLIDES. 
THERE ARE A FEW COMPANIES IN 
OUR SPACE, BUT NONE HAVE SOLVED 
THE PRIVACY VERSUS MONETIZATION 
PARADOX AS WE HAVE. 
THEY EITHER HAVE WEAK SECURITY, 
GIVE AWAY TOO MANY RIGHTS OR 
ARE MISSING OUR PATENTED 
TECHNOLOGY THAT PROTECTS USER 
DATA FOREVER. 
WE HAVE A NUMBER OF PATENTS 
PENDING THAT GIVE US A TWO YEAR 
HEAD START AT THE INTERSECTION 
OF MACHINE LEARNING, PRIVACY 
AND IDENTITY. 
WITH OZONE YOU CAN TAKE BACK 
CONTROL OF YOUR DATA. 
SIGN UP TODAY AT OZONE.AI. 
>> JUDGES? 
>> I'LL HOP ON WITH THE FIRST 
QUESTION. 
THANK YOU. 
GREAT PRESENTATION. 
I'M CURIOUS. 
WHAT DO YOU VIEW AS THE INITIAL 
TARGET CONSUMER PROFILE? 
WHO DO YOU THINK WILL BE THE 
EARLY ADOPTER? 
WHAT DO YOU WANT TO TEST TO 
DRIVE MASS MARKETED OPTION? 
>> YEAH. 
WE'RE TARGETING THE U.S. MARKET 
RIGHT NOW. 
THE AVERAGE USER WANTS TO SEE 
WHAT KIND OF EXHAUST AM I 
LEAVING? 
WHAT DATA AM I GENERATING EVERY 
DAY? 
WHAT KIND OF ADVERTISERS ARE 
SEEING MY DATA AND HOW DO I SEE 
IT IN A LANGUAGE I UNDERSTAND? 
THIS IS BASICALLY ANYBODY WHO 
IS MAYBE A LITTLE BIT LESS DATA 
SAVVY AND WOULD LIKE A LITTLE 
BIT OF VISIBILITY INTO WHAT 
THEY'RE DOING EVERY DAY. 
>> SO IS IT MORE OF THE 
DISCOUNT SHOPPER YOU THINK OR 
MORE OF THE SECURITY OBSESSED 
CONSUMER? 
>> IT'S PROBABLY MORE THE 
DISCOUNT SHOPPER. 
WE'RE TARGETING USERS WHO HAVE 
MAYBE CASUAL CURIOSITY AND DATA 
PRIVACY BUT ARE NOT OBSESSIVE 
ABOUT PRIVACY PRACTICES. 
>> PILING ONTO KARA'S QUESTION, 
HAS THERE BEEN OTHER ATTEMPTS 
TO DO THIS IN THE PASS AND 
GRANTED, THE TIMING FOR THIS 
NOW MAY BE GREAT GIVEN ALL THE 
KIND OF PUBLIC ATTENTION TO THE 
ISSUE? 
BUT HISTORICALLY THE TWO BIG 
CHALLENGES HAVE BEEN TRYING TO 
CONVINCE PEOPLE TO CARE ABOUT 
IT BECAUSE THIS IS A TRADEOFF 
MOST PEOPLE ARE COMFORTABLE 
MAKING. 
THEY GIVE UP SOME PRIVACY IN 
RETURN FOR VARIOUS MEDIA 
PROPERTIES AND SERVICES AND 
WHEN YOU ACTUALLY LOOK AT HOW 
MUCH THEY CAN MAKE, THE AMOUNT 
OF MONEY THEY CAN MAKE IS 
QUESTIONABLE. 
IT ENDS UP BEING A HANDFUL OF 
DOLLARS PER YEAR TYPE OF THING. 
HOW DO YOU GUYS THINK ABOUT 
THOSE DYNAMICS IN CONVINCING 
ENOUGH PEOPLE THIS REALLY IS 
WORTH IT AND THAT ECONOMICALLY 
IT'S IN THEIR BEST INTEREST? 
>> WE'RE TREATING THIS AS A 
PUBLIC UTILITY. 
IT'S TOTALLY FREE FOR USERS. 
WE'RE TRYING TO GIVE THEM THE 
SIMPLEST POSSIBLE WAY FOR THEM 
TO SOLVE THINGS LIKE DATA 
AMNESIA, WHAT AM I DOING EVERY 
DAY AND I FORGET I DO THESE 
THINGS? 
I KIND OF WANT TO KNOW WHO IS 
FOLLOW ONING ME. 
WE'LL MAKE THAT EASY FOR THEM 
INSTEAD OF HAVING TO DOWNLOAD A 
GIANT FILE AND SIFT THROUGH 
MANUALLY. 
AND THEN BEYOND THE FREE TOOL 
WE GIVE THEM THE OPPORTUNITY TO 
MAKE A LITTLE MONEY EVEN IF 
IT'S LET'S SAY $500 A YEAR. 
$500 A YEAR IS ENOUGH TO COVER 
THE COST OF SAY YOUR CELL PHONE 
BILL FOR THE AVERAGE COLLEGE 
STUDENT. 
IT'S NOT A HUGE AMOUNT OF MONEY 
RIGHT NOW, BUT DATA IS GROWING 
EXPONENTIALLY FOR EVERY USER 
AND THE PRIVACY PROBLEM IS 
GETTING BIGGER AND BIGGER FOR 
EVERY USER AND THIS IS A SMALL 
STEP FOR USERS TO TAKE BACK 
CONTROL. 
>> DATA HAS SHOWN THE VALUES OF 
THE ADS IS ABOUT $200,000 A 
YEAR. 
WE THINK IT CAN BE MUCH MORE 
THAN. 
THAT FOR US WE'VE BEEN WORKING 
TO PROVE THAT FOR OURSELF AND 
OUR POCs. 
>> I THINK MANY OF US WOULD 
PREFER GOOGLE AND FACEBOOK TO 
BE OPENED UP PERHAPS MORE THAN 
BROKEN UP, BUT YOU GOT TO 
IMAGINE FACEBOOK AND GOOGLE 
DON'T REALLY WANT TO PLAY BALL 
WITH THIS. 
SO LIKE CAN YOU SHARE LIKE HOW 
YOU NAVIGATE THEM COMING DOWN 
SO THAT THEY WILL PARTICIPATE 
IN A PLATFORM LIKE THIS? 
>> WE HAVE A BUILT IN ESCAPE 
HATCH, ALL WE NEED IS A TOKEN 
FOR THE USER. 
IN THE ABSENCE OF THE ACCESS TO 
THE DEVELOPER API, ANY USER CAN 
STILL ACCESS THEIR DATA. 
WE WOULD SIMPLIFY THE PROCESS 
FOR THE USER TO INJECT TO 
BASICALLY PUMP THEIR DATA 
DIRECTLY INTO OUR PIPELINES AND 
IF FACEBOOK AND GOOGLE WERE TO 
DENY A USER'S ACCESS TO THEIR 
OWN DATA, THAT'S A BIG PROBLEM 
THEY HAVE AND WE'RE HAPPY TO 
TAKE ADVANTAGE OF THAT. 
>> YOU THINK IT'S DOABLE? 
IS IT LIVE AND WORKING AND THAT 
YOU CAN SUCK IN ALL THE DATA IN 
REALTIME? 
>> YES, YES, YES. 
>> ALSO THAT WE DO HAVE SOME 
STRONG SUPPORTERS WITHIN GOOGLE 
AND FACEBOOK. 
WE HAVE ALSO THINK ULTIMATELY 
WHEN THEY REALIZE WHAT WE'RE 
DOING, WE'RE EXTREMELY 
ACCRETIVE TO WHAT THEY'RE 
TRYING TO DO. 
PEOPLE SPEND MORE TIME ON 
GOOGLE, MORE TIME ON FACEBOOK, 
CREATE MORE DATA EXHAUST, 
CREATE  MORE MONETIZATION. 
>> WE THINK USERS ARE CREATING 
MORE INVENTORY EVERY DAY AND 
IT'S PORTED OVER TO OZONE AND 
WE'RE OPERATING ESSENTIALLY A 
MARKET ON BEHALF OF THE USER. 
>> YOU GUYS MENTIONED ETHICALLY 
SOURCING AND TO THE EXTENT YOU 
CAN SHARE WITH US YOUR THOUGHT 
PROCESS WHERE DEPENDENCE OR 
DEMOGRAPHIC THAT IS YOUNGER IS 
COMING ONTO YOUR PLATFORM OR 
SERVICE, HOW DO YOU THINK ABOUT 
WHAT IS THE CUTOFF IN TERMS OF 
EITHER AGE OR, YEAH. 
HOW DO YOU THINK ABOUT, YOU 
KNOW -- 
>> TAKING BACK A STEP, A BIG 
PART OF OUR PLATFORM IS 
COMMUNITY. 
WE'RE GOING TO COME OUT WITH 
ALMOST LIKE A REGULAR DAILY 
WIKI IN SMALL SOCIAL MEDIA KIND 
OF BYTES TO START EDUCATING 
LESS TENTACLE USERS THAN WHAT 
WE'RE DOING. 
WE'RE GOING TO FOLLOW ALL THE 
SAME PATTERNS AS GOOGLE AND 
FACEBOOK AS FAR AS AGE CUTOFFS, 
BUT WE DO BELIEVE A BIG PART OF 
OUR PLATFORM IS EDUCATING ALL 
USERS ON HOW THEY CAN BETTER 
PROTECT WILL BECOME THE LARGEST 
ASSET OF ALL. 
>> LAST QUESTION. 
>> WHAT TYPE OF CRITICAL MASS 
OF USERS DO YOU HAVE TO HAVE TO 
ATTRACT THE FIRST ADVERTISERS 
TO BE PAYING YOU AND MAKING 
OFFERS ON THE PLATFORM? 
>> SO AT THE PREVIOUS COMPANY 
THAT I RAN I RAN A VENDOR TO A 
LARGE RESEARCH COMPANY THAT 
WOULD RUN REMOTE SURVEYS 
COUNTRYWIDE IN COUNTRIES LIKE 
BRAZIL AND NIGERIA AND 
TANZANIA. 
THE TARGETS THEY LOOKED FOR WAS 
ABOUT 5 TO 6,000 TO WHAT THEY 
CLAIM WAS TO ACCURATELY 
EXTRAPOLATE FOR THE ENTIRE 
COUNTRY'S POPULATION. 
THESE WERE LONG EXTENSIVE 
SURVEYS ASKING PERSONALLY 
IDENTIFYING QUESTIONS LIKE ARE 
YOU WILLING TO INVEST MORE IN 
PRIVATE EDUCATION FOR YOUR 
CHILD? 
ARE YOU CONFIDENT IN THE STATE 
OF HEALTHCARE IN YOUR DISTRICT, 
IN YOUR CITY? 
AND WE FOUND THAT 5 TO 6,000 
WAS MORE THAN ENOUGH FOR A 
BILLION DOLLAR RESEARCH 
COMPANY. 
>> WE ARE OUT OF TIME. 
LET'S HAVE ONE MORE ROUND OF 
APPLAUSE FOR OZONE! 
>> THANK YOU. 
>> ALL RIGHT. 
LET'S BRING OUT OUR THIRD 
STARTUP. 
THAT STARTUP IS LEO AEROSPACE. 
PRESENTING ARE DANE RUDY AND 
BRYCE PRYOR. 
THESE MICROSATELLITES CAN GET 
DOWN TO THE SIZE OF A LOVE A 
LOAF OF BREAD. 
IN THE NEXT 10 YEARS ALMOST ALL 
SATELLITES WILL BE 
MICROSATELLITES. 
THEY'RE TRACKING GLOBAL CLIMATE 
CHANGE IN REALTIME ENABLING THE 
NEXT GENERATION OF IOT 
CONNECTIVITY AND EVEN PROVIDING 
VITAL INSIGHT IN THE WAKE OF 
NATURAL DISASTERS. 
FOR THE COMPANIES THAT USE 
THESE MICROSATELLITES GETTING 
TO SPACE IS JUST HALF THE 
BATTLE BECAUSE THEY ARE FORCED 
TO RIDE ALONGSIDE DOZENS OF 
OTHERS. 
THEY MUST COMPROMISE ON EVERY 
ASPECT OF THE LAUNCH. 
TO START THESE CUSTOMERS MUST 
PICK FROM PRESET SCHEDULES OF 
LAUNCHES. 
OFTEN THEY ARE FORCES AND MUST 
SPEND UPWARDS OF SIX MONTHS 
SLOWLY MOVING TO THEIR FINAL 
ORBIT. 
FINALLY INTEGRATING SO MANY 
CUSTOMERS UNDER ONE LAUNCH IS 
INCREDIBLY COMPLEX AND THIS 
INTRODUCES A NUMBER OF 
RESTRICTIONS THAT LIMIT WHAT 
SATELLITES CAN DO. 
WHILE THESE COMPANIES ARE 
WAITING, THEY'RE BURNING 
CAPITAL DEFERRING REVENUE AND 
ADDING TO A GROWING BACKLOG OF 
SATELLITES THAT ARE WAITING TO 
GET TO SPACE. 
THIS MODEL THE SPACE INDUSTRY 
CALLS RIDE SHARING. 
MICROSATELLITES HAVE TO 
LITERALLY SHARE A RIDE TO 
SPACE, BUT WHAT CUSTOMERS NEED 
IS THE EXPERIENCE YOU AND I 
KNOW AS RIDE SHARING WHERE YOU 
CAN CALL UP A RIDE THAT TAKES 
YOU WHERE YOU WANT TO GO, WHEN 
YOU WANT TO GET THERE, NO 
COMPROMISE. 
AT LEO AEROSPACE WE ARE 
FUNDAMENTALLY COMMITTED TO 
PROVIDING THE DEDICATED LAUNCH 
SERVICE THEY'VE ASKED FOR. 
THIS ALL STARTS WITH THE 
VEHICLE. 
CREATING A VEHICLE TO PROVIDE 
THIS TYPE OF SERVICE OUR FIRST 
THOUGHT WAS TO SHRINK THE 
ROCKET DOWN TO MATCH THE SIZE 
OF OUR CUSTOMER. 
THE PROBLEM IS WHEN YOU LAUNCH 
A ROCKET FROM THE GROUND, YOU 
CAN ONLY MAKE IT SO SMALL WHILE 
ONLY HAVING ENOUGH ENERGY TO 
REACH ORBIT. 
UNFORTUNATELY AT THIS SIZE IT'S 
TOO BIG AND EXPENSIVE. 
ONE OF THE REASONS FOR IN IS 
DUE TO ATMOSPHERIC DRAG. 
IF YOU COULD LAUNCH YOUR ROCKET 
ABOVE 95% OF THE EARTH'S 
ATMOSPHERE, YOU COULD MAKE IT 
SMALL ENOUGH TO COST 
EFFECTIVELY LAUNCH AN 
INDIVIDUAL CUSTOMER AND THAT'S 
EXACTLY WHAT WE DO. 
INTRODUCING THE HIGH ALTITUDE 
LAUNCH PLATFORM REGULUS THAT 
ALLOWS US TO LAUNCH ROCKETS 
60,000 FEET IN ALTITUDE. 
WE CAN REDUCE THE ROCKET SIZE 
TO HALF OF WHAT IT WOULD BE IF 
WE LAUNCHED IT FROM THE GROUND. 
LET ME SHOW YOU HOW IT WORKS. 
RE GULUS IS FULLY MOBILE. 
A SERIES OF BURNERS IGNITE. 
THE HOT AIR BALLOON CARRIES IT 
AWAY FROM THE TRANSPORT TRUCK. 
IT'S CAPABLE OF FULLY 
AUTONOMOUS CONTROL DESCENT. 
IT ASCENDS TO 60,000 FEET 
WITHOUT HUMAN CONTROL. 
THIS ORIENTS THE LAUNCH 
PLATFORM AND STABILIZES IT 
DURING THE LAUNCH SEQUENCE. 
OUR FIRST STAGE IGNITES 
LAUNCHING THE ROCKET FROM THE 
PLATFORM. 
FIRST AND SECOND STAGES USE A 
SOLID MOTOR ARCHITECTURE. 
THIS ARCHITECTURE IS SAFE, 
SHELF STABLE AND MASS 
MANUFACTURABLE. 
INSERTING EACH SATELLITE INTO 
ITS PRECISE ORBIT IS VITAL FOR 
FINE TUNED CONTROL USING A 
THIRD STAGE NONCRYOGENIC LIQUID 
PROPULSION SYSTEM. 
BECAUSE WE TAILOR EACH LAUNCH 
TO AN INDIVIDUAL CUSTOMER, THEY 
CAN BEGIN OPERATING THEIR 
SATELLITES IMMEDIATELY AND 
WHILE THE ROCKET IS DEPLOYING 
THE SATELLITE TO ORBIT, 
AUTONOMOUS DESCENDS BACK DOWN 
TO THE GROUND WHERE ANOTHER 
ROCKET CAN BE LOADED OR IT CAN 
BE PACKAGED UP AND SHIPPED 
HOME. 
WITH THIS PLATFORM WE CAN 
PROVIDE A LAUNCH WITHIN WEEKS 
TO ANY LOW EARTH ORBIT AND 
SUPPORT A VERY HIGH LAUNCH 
FREQUENCY. 
FINALLY MICROSATELLITE 
CUSTOMERS WILL HAVE THE 
DEDICATED LAUNCH SERVICE 
THEY'VE BEEN ASKING FOR. 
LEO AEROSPACE MADE HISTORY IN 
2018 AS THE FIRST AND ONLY 
COMPANY TO RECEIVE 
AUTHORIZATION FROM THE FAA TO 
LAUNCH A HIGH POWERED ROCKET 
FROM A REUSEABLE BALLOON 
PLATFORM. 
THIS SERIES OF SUCCESSFUL 
LAUNCHES VALIDATED MAJOR 
SUBSYSTEMS AND ALSO PROVIDED A 
CLEAR REGULATORY PATH FOR US 
MOVING FORWARD. 
WHILE WE WERE TESTING THESE 
SYSTEMS WE REALIZED THAT OUR 
PLATFORM COULD DO MORE THAN 
LAUNCH ROCKETS AT ALTITUDE. 
WE ARE WORKING WITH NASA JPO TO 
ASSESS HOW OUR TECHNOLOGY CAN 
BE USED ON THE PATH TO MARS. 
WE ARE WORKING TO FLIGHT 
QUALIFY OUR PLATFORM NEXT YEAR 
UP TO 60,000 FEET. 
THIS OPENS THE DOOR TO A $2.6 
BILLION HIGH ALTITUDE PLATFORM 
SERVICES MARKET. 
LEO AEROSPACE IS UNDER CONTRACT 
WITH THE U.S. AIR FORCE. 
WE HAVE IDENTIFIED OVER 100 
SCIENTIFIC PAYLOADS IN THEIR 
BACK LOAD. 
WE ARE WORKING TO LAUNCH THE 
FIRST OF THESE IN OUR 
SUBORBITAL LAUNCH TEST NEXT 
YEAR. 
THIS PROVIDES VALIDATION TO OUR 
COMMERCIAL CUSTOMERS AND ALLOWS 
US TO BEGIN TAKING CONTRACTS 
FOR ORBITAL LAUNCHES. 
WE WILL LAUNCH OUR FIRST 
PAYLOAD IN 2022 OPENING THE 
DOOR TO A $5.6 BILLION 
ASSOCIATED LAUNCH MARKET. 
AS A TEAM, WE BRING EXPERIENCED 
PROGRAMMING FLIGHT OPERATIONS 
SOFTWARE AT NASA, PERFORMING 
PROPULSION WORK ON THE JAMES 
WEBB SPACE TELESCOPE AND 
LEADING OPERATIONS AS A U.S. 
NAVAL OFFICER. 
GO TO LEOAEROSPACE.COM. 
JOIN US MISSION TO 
REVOLUTIONIZE ACCESS TO SPACE. 
WITH THAT I'D LIKE TO LEAVE YOU 
SOME FOOTAGE FROM ONE OF OUR 
RECENT TESTS. 
THANK YOU. 
>> GO AHEAD. 
>> WELL DONE, GUYS. 
WHAT IS THE PAYLOAD RANGE 
YOU'RE TARGETING AND WHAT IS 
THE COST PER KILOGRAM PER 
LAUNCH TO ANY OTHER ORBIT? 
>> OF COURSE. 
SO OUR BASELINE PAYLOAD 
CAPACITY IS 25 KILOGRAMS TO A 
550-KILOMETER SUN SYNCHRONOUS 
ORBIT. 
SO THE SMALLER END OF THE 
SATELLITE MARKET. 
IN TERMS OF PRICE PER KILOGRAM 
WE'RE LOOKING TO PRICE 
COMPETITIVELY WITH CURRENT RIDE 
SHARE MODELS, BUT IN 
CONVERSATIONS WITH CUSTOMERS 
THEY'VE MADE IT VERY CLEAR THIS 
SORT OF DEDICATED LAUNCH WHERE 
THEY CAN PICK WHERE AND WHEN 
THEY'RE GOING IS A PREMIUM 
SERVICE IN THEIR EYES. 
THEY'RE WILLING TO PAY MORE FOR 
THAT. 
>> WE'VE LOOKED AT A VARIETY OF 
SPACE TECH COMPANIES KIND OF 
BROADLY DEFINED AND HAVE BEEN 
HESITANT TO INVEST BECAUSE OF 
THE CAPITAL INTENSITY OF THE 
CATEGORY. 
TYPICALLY YOU NEED HUNDREDS OF 
MILLIONS OF DOLLARS, MAYBE EVEN 
MORE TO KIND OF GET TO SCALE. 
DO YOU GUYS HAVE A SENSE WHAT 
TYPE OF CAPITAL YOU GUYS WILL 
NEED NOT JUST TO GET SOME OF 
THE INITIAL TESTS DONE, BUT GET 
THE PRODUCT ACTUALLY WORKING, 
GET THROUGH ALL THE SCIENCE 
RISK? 
THESE ARE TYPICALLY MULTI-YEAR 
SALES PROCESSES INTO THE 
GOVERNMENT THAT'S REALLY LONG 
AND EXPENSIVE TO GET THEM TO 
ENGAGE. 
WHAT IS THE ACTUAL SCALE OF 
CAPITAL NEED TO BE FOR YOU GUYS 
TO BE SUCCESSFUL? 
>> YES. 
SO YOU'RE ABSOLUTELY RIGHT IN 
THE FACT THAT SPACE TECH 
COMPANIES ARE GENERALLY VERY 
CAPITAL INTENSE ACTIVE. 
MOST SPACE LAUNCH COMPANIES 
HAVE RAISED ON THE ORDER OF 
HUNDREDS OF MILLIONS OF DOLLARS 
PRIOR TO GETTING TO ORBIT. 
VECTOR HAD RAISED 107 MILLION. 
SO WITH OUR PROJECTIONS, 
THOUGH, WE FORESEE BEING ABLE 
TO GET TO ORBIT ON THE ORDER OF 
TENS OF MILLIONS, NOT HUNDREDS 
OF MILLIONS OF DOLLARS. 
WE HAVE MADE STRATEGIC 
DECISIONS TO ENABLE US TO PULL 
THAT OFF. 
FOR EXAMPLE, FOR ANY STANDARD 
LAUNCH PROGRAM 70% OF THE R AND 
D COSTS GOES INTO THE ENGINES 
OF THAT PROGRAM. 
WE ARE NOT BUILDING OUR OWN 
ENGINES. 
WE ARE SOURCING THOSE FROM 
INDUSTRY SUPPLIERS. 
WE HAVE GREAT RELATIONSHIPS 
WITH THOSE SUPPLIERS WHO ARE 
ALREADY BUILDING UP FACILITIES 
TO BE ABLE TO SUPPORT OUR 
NEEDS. 
WITH REGARDS TO YOUR QUESTION 
ABOUT MULTI-YEAR SALES CYCLES 
FOR GOVERNMENT, THINGS LIKE 
THAT, WE ARE ALREADY ACTUALLY 
WRITING CONTRACT PROPOSALS NOW 
WITH THE U.S. AIR FORCE WITH 
IDENTIFIED CUSTOMERS AND END 
USERS WHO ARE BEGGING FOR OUR 
TECHNOLOGY TO PULL OFF 
SUBORBITAL LAUNCHES NEXT YEAR. 
>> COULD YOU MAYBE WALK US 
THROUGH WHAT IS IT THAT IS MOST 
PROPRIETARY ABOUT YOUR SYSTEM 
OR PLATFORM VERSUS USING 
EXISTING COMPONENTS AND PARTS, 
TECHNIQUES? 
>> ABSOLUTELY. 
A LOT OF OUR PROPRIETARY 
TECHNOLOGY COMES IN THE 
INTEGRATION AND COOPERATION OF 
HIGH ALTITUDE BALLOON AND 
ROCKETS TOGETHER. 
IT'S A COMPLEX PROBLEM. 
FOR EXAMPLE, THE U.S. AIR FORCE 
TRIED DOING IT BACK IN THE 
1950s AND SUCCESSFULLY DID IT, 
BUT THEY LAUNCHED THE ROCKETS 
THROUGH THEIR BALLOONS 
EXPLODING IT. 
IT WAS NONREUSEABLE AND PRETTY 
HAZARDOUS. 
IN ORDER TO DO THIS 
AUTONOMOUSLY AND REUSEABLY, 
THERE'S A LOT OF  PROPRIETARY 
TECHNOLOGY THAT ALLOWS US TO DO 
THAT. 
>> TO GET TO THE 60,000 FEET 
LAUNCH IS PROBABLY NOT 
TOMORROW. 
HOW LONG DO YOU THINK THAT WILL 
TAKE AND IN LIEU OF REVENUES 
WHAT ARE THE KPIs YOU GUYS ARE 
TRACKING THAT YOU THINK ARE 
MOST IMPORTANT IN YOUR JOURNEY 
TO GET TO THE 60,000-FOOT 
LAUNCH? 
>> ABSOLUTELY. 
>> WE'RE LOOKING TO GET UP TO 
THAT 60,000-FOOT LAUNCH EARLY 
TO MID-NEXT YEAR. 
IN TERMS OF THE KPIs, THERE'S A 
LOT OF DEVELOPMENT AND 
TECHNICAL MILESTONES THAT WE 
WORK IN PARTNERSHIP WITH THE 
OFFICE OF SPACE AND IN TERMS OF 
OTHER KPIs WE'RE FOCUSED ON 
THREE DIFFERENT CUSTOMER 
SEGMENTS, COMMERCIAL, DEFENSE 
AND CIVIL. 
THEY EACH OBVIOUSLY HAVE VERY 
DIFFERENT CYCLES. 
>> OTHER QUESTIONS? 
>> I GUESS IS THERE ANY 
ENVIRONMENTAL ISSUES JUST LIKE 
ON THE ONE HAND YOU TALK ABOUT 
SORT OF CONVENIENCE AND 
PREDICTABILITY, BUT I IMAGINE 
BALLOON LAUNCHING IS VERY 
DEPENDENT ON KIND OF WEATHER 
AND CLIMATE. 
SO DO YOU HAVE ANY SORT OF 
CONFIDENCE LEVEL THAT YOU CAN 
HIT THE WINDOWS BASED ON THE 
SORT OF DEPENDABILITY THAT YOU 
HAVE ON THE ENVIRONMENTAL 
FACTORS? 
>> YES. 
ENVIRONMENTAL CONDITIONS ARE 
ALWAYS A FACTOR FOR ANY LAUNCH 
VEHICLE. 
SO OUR SYSTEM IS DESIGNED TO 
FIT WITHIN THE BOUNDS OF 
ANYTHING YOU TYPICALLY SEE WITH 
A LAUNCHED VEHICLE. 
>> TO ADD ONTO THAT, BECAUSE 
OUR PLATFORM IS ENTIRELY 
MOBILE, IF WE KNOW THAT SAY 
THERE'S A HURRICANE COMING UP 
WITH FLORIDA, THAT'S GOING TO 
POSTPONE ANY LAUNCHES HAPPENING 
FROM CAPE CANAVERAL. 
WE CAN MOVE LITERALLY ANYWHERE 
WITH THAT SYSTEM THAT YOU ARE 
LICENSED TO FLY IN THE 
AIRSPACE. 
OBVIOUSLY WE WORK WITH ALL 
LOCAL GOVERNMENTS. 
WE CAN FLY THIS THING OFF OF 
LARGE BARGES AND THINGS LIKE 
THAT. 
>> CAN I ASK ONE FOLLOW-UP 
QUESTION? 
>> YEAH. 
>> HOW MUCH WILL IT COST TO GET 
THE FIRST ROCKET IN SPACE WITH 
YOUR FIRST PAYING CUSTOMER? 
>> ANSWER QUICKLY. 
>> YES. 
THAT'S THE LARGEST COST, THE 
NONRECURRING ENGINEERING GOING 
INTO DEVELOPING AND REGULATING 
AND LICENSING THAT VEHICLE. 
THE COSTS SEVERELY DROP OFF 
AFTER THAT. 
>> IS IT 10 MILLION, 50 
MILLION? 
WHAT IS IT TO HAVE LIKE A REAL 
REVENUE PRODUCING CUSTOMER? 
>> I WILL SAY LOW TENS OF 
MILLIONS. 
HAPPY TO DISCUSS THAT OFFLINE. 
>> GIVE IT UP FOR LEO 
AEROSPACE! 
>> WE ARE GOING TO BRING OUT 
OUR FOURTH STARTUP, MOLECULE 
ONE.   
>> DURING OUR TIME AS MEDICAL 
EXPERTS, WE WATCHED MANY PEOPLE 
SUFFER FROM UNTREATABLE 
DISEASES. 
THIS HAS ALWAYS LED US TO TWO 
QUESTIONS. 
WHY DOES THE DRUG DISCOVERY AND 
DEVELOPMENT TAKE 12 YEARS AND 
WHAT CAN WE HAVING A BACKGROUND 
IN BOTH CHEMISTRY AND 
MATHEMATICS DO TO FIX THIS? 
FOR EACH DRUG THAT MAKES IT TO 
THE MARKET AS MANY AS 20,000 
DRUGLIKE MOLECULES NEED TO BE 
MADE IN A LABORATORY FOR 
TESTING. 
THE PROCESS CALLED CHEMICAL 
SYNTHESIS, DESIGNING HOW TO 
SYNTHESIZE A GIVEN MOLECULE IS 
HIGHLY INEFFICIENT AND PRONE TO 
ERRORS. 
IT INVOLVES CHEMISTS MANUALLY 
DIGGING THROUGH TENS AND 
HUNDREDS OF SCIENTIFIC 
PUBLICATIONS. 
CHEMICAL SYNTHESIS IS THE 
OVERLOOKED BOTTLENECK IN DRUG 
DISCOVERY UNTIL NOW. 
INTRODUCING MOLECULE ONE, THE 
FUTURE OF CHEMICAL SYNTHESIS. 
MOLECULE ONE LEVERAGES ART 
INITIAL INTELLIGENCE TO DESIGN 
MOLECULE SYNTHESIS IN SECONDS 
INSTEAD OF HOURS OR DAYS. 
FIRST THE USER INPUTS THE 
STRUCTURE OF THE MOLECULE THEY 
WANT TO MAKE. 
IT IS THEN ANALYZED THROUGH 
PATENT PENDING TECHNOLOGY. 
THE SYSTEM TRIES TO FIND A WAY 
TO MAKE IT FROM COMMERCIALLY 
AVAILABLE MOLECULES. 
FINALLY FOUND WAYS ARE RANKED 
ACCORDING TO USER PREFERRED 
CRITERIA PRESENTED TO THE USER 
AND SUPPORTED WITH THE LAB 
TESTED EVIDENCE. 
LET ME SHOW YOU HOW IT WORKS. 
MOVE TO THE DEMO, PLEASE. 
WE  CHOSE A MARKETED DRUG OF 
THE DESIGN PRODUCT. 
SEARCH PARAMETERS ARE PICKED 
TYPICAL FOR LATE STAGE DRUG 
DISCOVERY. 
MEDIUM QUANTITY, SHORT SHIPPING 
TIME OF STARTING MATERIALS.
YOU CAN SEE THAT THE FIRST 
RESULTS ARE AVAILABLE WITHIN A 
JUST A FEW SECONDS. 
THE SYSTEM IS BASED ON DEEP 
LEARNING. 
IT UTILIZES INFORMATION ABOUT 
PREVIOUS EXPERIMENTS TO FIND 
OUT WHAT KINDS OF 
TRANSFORMATION BETWEEN 
DIFFERENT MOLECULES ARE VIABLE. 
IT IS THEN ABLE TO PROPOSAL THE 
STEPS. 
VIABLE STEPS ARE ASSEMBLED INTO 
MULTI-STEP PATHWAYS THAT LEAD 
ALL WAIT  THE WAY FROM STARTING 
MATERIALS TO THE DESIRED 
PRODUCT. 
THE SEARCH HAS FINISHED AND THE 
BEST RESULT IS SHOWN TO THE 
USER. 
ON THE LEFT SIDE OF THE SCREEN 
WE SEE THE MOLECULE, ONE THAT 
THE USER WANTED TO MAKE. 
WITH THE AID OF DIFFERENT 
COLORS THE USER IS ABLE TO 
TRACE EACH ATOM FROM THE TARGET 
MOLECULE BACK TO STARTING 
MATERIALS. 
LET'S TAKE A LOOK AT A 
PARTICULAR STEP. 
IT IS POSSIBLE TO DIVE INTO LAB 
TESTED REFERENCE FOR THIS STEP. 
THIS HELPS THE CHEMIST TO 
EASILY PROCEED WITH THE DESIGN 
SYNTHESIS INTO THE LAB. 
BACK TO THE DEMO, PLEASE. 
THANK YOU. 
A PROCESS THAT USED TO TAKE 
HOURS AND DAYS CAN NOW BE DONE 
IN UNDER A MINUTE. 
A PROCESS THAT NEEDS TO BE 
ITERATED THOUSANDS OF TIMES FOR 
JUST ONE DRUG. 
THE SYNTHESIS TARGET IS USED TO 
TREAT AGGRESSIVE FORMS OF LUNG 
CANCER. 
IT BROUGHT $1.9 BILLION IN 
REVENUE IN 2018. 
THE PRODUCT YOU HAVE JUST 
WITNESSED IN ACTION IS THE WORK 
OF THIS COMPENSATIONALLY 
TALENTED TEAM WHICH EVERY 
SINGLE DAY BRIDGES THE GAP 
BETWEEN CHEMISTRY AND 
TECHNOLOGY. 
SOFTWARE OF OUR COMPETITORS 
DOES NOT UTILIZE AI TO LEVERAGE 
CHEMICAL DATA SETS FOR 
SYNTHESIS PLANNING AND OFTEN 
HAS TROUBLE GENERALIZING TO 
NOVEL MOLECULES. 
ALSO THEIR SOFTWARE LOOKS AND 
INTERACTS WITH THE USER LIKE IT 
WAS CREATED 15 PLUS YEARS AGO. 
OUR INITIAL FOCUS IS THE DRUG 
DISCOVERY ECOSYSTEM WHICH 
CRAVES FOR THE UTILIZATION OF 
RECENT
ADVANCES IN ARTIFICIAL 
INTELLIGENCE INCLUDING 
DEVELOPMENTS FOR AG CHEMISTRY, 
IT'S A $500 BILLION MARKET. 
WE HAVE AN ENTERPRISE TIER OF 
CUSTOM INTEGRATIONS AND 
OPTIONAL ON PREMISE DEPLOYMENT. 
MOLECULE ONE HAS SEVERAL 
PARTNERSHIPS WITH INDUSTRIAL 
LEADERS. 
E MOLECULES, THE LEADING 
MARKETPLACE FOR MOLECULES, AWU 
WITH WHOM WE ARE EXPLORING A 
GIANT PROJECT AT A FORTUNE 500 
PHARMACEUTICAL COMPANY. 
WE HAVE A TRIAL SCHEDULED WITH 
ANOTHER SUCH COMPANY WITHIN TWO 
WEEKS AND RIGHT NOW OUR 
SOFTWARE IS EVALUATED BY A 
MEDIUM SIZED DRUG DISCOVERY 
COMPANY. 
MAKE MEDICINES FASTER, CURE 
PATIENTS FASTER. 
GO TO MOLECULE POINT ONE TODAY 
AND OPTIMIZE YOUR SYNTHESIS 
PIPELINE. 
>> JUDGES. 
>> THANKS FOR THAT. 
CAN YOU TELL US MORE ABOUT THE 
DATA THAT YOU'VE BEEN TRAINING 
ON AND THE DATA THAT YOU'RE 
FEEDING INTO THE SYSTEM AND HOW 
IT GETS SMARTER AND DOES IT GET 
SMARTER ACROSS CUSTOMERS? 
>> YES, ABSOLUTELY. 
SO THE BASIC VERSION, THE ONE 
THAT YOU SAW TODAY, IS BASED 
SOLELY ON PUBLICLY AVAILABLE 
DATA. 
THE MAIN SOURCES ARE CHEMICAL 
PATIENTS AND REACTIONS THAT 
THEY'RE EXTRACTED FROM THERE. 
OF COURSE, WE WANTED TO GET 
SMARTER WITH TIME AND WE WANTED 
CUSTOMERS TO BE ABLE TO UTILIZE 
THEIR OWN DATA. 
SO WE BUILT THE SYSTEM IN SUCH 
A WAY THAT IT WILL BUILD MORE 
REACTION DATA AND GET SMARTER 
WITH THAT. 
>> A FOLLOW-UP QUESTION. 
DO YOU HAVE DATA ON THE SUCCESS 
RATE OR EFFICACY OF THAT AND 
OTHERS PERHAPS ETHICAL LIMITS 
THAT YOU CAN DO WITH THAT 
EXISTING DATA? 
>> IT'S KIND OF HARD TO DO THAT 
WITHOUT LABS, SO WE HAD TO 
RESORT TO OTHER MEASURES. 
ONE THING WE DID WAS PLANNING 
SYNTHESIS OR MOLECULES WITH 
KNOWN SYNTHESIS AND INSURING 
THAT THE SOFTWARE DOESN'T HAVE 
ACCESS TO THIS NONSYNTHESIS. 
SO WE TRIED TO FIGURE OUT 
WHETHER THE SOFTWARE IS ABLE TO 
RECREATE THE SYNTHESIS FROM 
OTHER INFORMATION AND IT WAS 
ABLE TO DO THAT IN ABOUT 85% OF 
CASES. 
SO THAT'S ONE AND WE PERFORMED 
A LOT OF EXPERIMENTS TO 
VALIDATE OUR MACHINE LEARNING 
MODELS AND SEE WHETHER THEY ARE 
ACTUALLY LEARNING STUFF ABOUT 
CHEMISTRY OR JUST RECREATING 
STUFF FROM MEMORY. 
>> DO YOU HAVE ANY -- HOW WOULD 
THAT COMPARE TO PRANCE  PERHAPS 
TRADITIONAL OTHER SOURCES THAT 
THESE CUSTOMERS MIGHT BE USING? 
>> THE THING IS THAT IF YOU USE 
TRADITIONAL SOURCE LIKE OUR 
COMPETITORS, IT'S VERY HARD, 
FOR EXAMPLE, TO PLAN A 
SYNTHESIS FOR A NOVEL MOLECULE. 
IT'S PRACTICALLY IMPOSSIBLE IN 
MOST OF THE CASES AND THAT'S 
WHAT WE WANT TO DO BECAUSE DRUG 
DISCOVERY NEEDS NEW MOLECULES. 
YOU CAN'T JUST RECREATE NEW 
MOLECULES WITHOUT HAVING 
CONSTRUCTED IN THE PAST AND 
IMPAIRING TO THE TRADITIONAL 
PEN AND PAPER APPROACH, IT'S 
MUCH FASTER. 
>> AS YOU'RE GOING INTO EARLY 
CUSTOMERS, TARGET BUYERS, ET 
CETERA, WHAT IS RESONATING FOR 
THE EARLY ADOPTERS AND WHAT ARE 
THE BIGGEST OBJECTIONS YOU'RE 
GETTING TO EARLY ADOPTION? 
>> SO THE PROBLEM WITH OUR 
IDEAL CUSTOMER IS BIG PHARMA 
AND THE PROBLEM WITH THEM IS 
THE LONG CYCLE AND THE BIGGEST 
REASON FOR THAT IN OUR CASE IS 
THAT THEY HAVE DATA SECURITY 
CONCERNS. 
SO IT'S HARD FOR THEM TO TRUST 
A SMALL COMPANY WITH THEIR DATA 
THAT THEIR PROPRIETARY. 
SO ONE EXAMPLE HOW WE'RE 
MITIGATING THAT APART FROM 
EMPLOYING SECURITY POLICIES IS 
PARTNERING  WITH GUYS LIKE AWS 
WHO ALREADY HAVE A RELATIONSHIP 
WITH THE BIG PHARMA GUYS AND 
HELP US TO OVERCOME THOSE 
INITIAL PROBLEMS. 
>> ARE YOU FINDING EARLY 
ADVOCATES WHO ARE HELPING YOU 
BREAK THROUGH OR WHAT IS THE 
PROFILE OF THE INDIVIDUAL IN 
THESE COMPANIES THAT ARE THE 
MOST WILLING TO EXPERIMENT? 
>> CHEMISTS, ESPECIALLY 
MEDICINE CHEMIST BECAUSE THEY 
DO ALL THE MOLECULES. 
I WOULD SAY THAT BIGGER 
COMPANIES ARE BETTER BECAUSE 
THEY HAVE MORE TIME TO 
EXPERIMENT ON NEW STUFF AND 
WITH SMALLER COMPANIES YOU JUST 
LIKE NEED TO -- THEY HAVE TOO 
MUCH TO DO EXCEPT FOR TRYING 
OUT NEW STUFF. 
I WOULD SAY THAT. 
>> IS THERE A PARTICULAR TYPE 
OF DISEASE THAT YOU GUYS ARE 
FINDING THAT CUSTOMERS ARE 
UTILIZING YOU GUYS FOR? 
>> I'M SORRY. 
COULD YOU REPEAT? 
>> IS THERE A TYPE OF DISEASE 
THAT YOU FIND THAT CUSTOMERS 
ARE UTILIZING YOUR SERVICE FOR? 
>> SO THIS IS AGNOSTIC. 
THE IMPORTANT DISTINCTION TO 
MAKE HERE IS THAT WE DESIGN 
SYNTHESIS FOR SO-CALLED SMALL 
MOLECULE DRUGS, SO NOT 
ANTIBODIES, NOT RECEPTORS AND 
ANOTHER IMPORTANT DISTINCTION 
TO MAKE IS THAT WE'RE NOT A 
WHAT COMPANY. 
THERE ARE COMPANIES LIKE 
ATOMWISE THAT DESIGNS 
STRUCTURES FOR ALZHEIMER'S 
DRUG, ET CETERA. 
WE TAKE THOSE STRUCTURES AND 
DESIGN THE PROCESSES TO MAKE 
THEM. 
>> SO -- GO AHEAD. 
>> NO. 
GO FOR IT. 
>> SO THERE ARE MANY COMPANIES 
THAT HAVE GENERATED MULTI 
BILLION DOLLAR EXITS BY TAKING 
A MOLECULE THROUGH CLINICAL 
TRIALS. 
HOWEVER, I STRUGGLE TO THINK OF 
A SINGLE COMPANY THAT'S DOING 
OR THAT HAS BEEN DOING 
SYNTHESIS OR HIGH THROUGH-PUT 
SCREENING OR TESTING THAT'S 
BEEN ABLE TO ACHIEVE THAT KIND 
OF OUTCOME. 
WHY IS IT THAT YOU'VE CHOSEN TO 
LEAVE THE MONEY ON THE TABLE 
FOR THE COMPANIES THAT TAKE 
THESE THROUGH CLINICAL TRIALS 
OR THE FOOD AND CHEMISTRY 
COMPANIES THAT MAKE PRODUCTS 
OUT OF THESE AS OPPOSED TO 
DOING THAT YOURSELVES? 
>> ANSWER QUICKLY. 
>> I WILL TAKE UP WITH THE 
INTENSITY BECAUSE WHAT WE'RE 
DOING IS BASICALLY SOFTWARE, SO 
MUCH LESS CAPITAL INTENSIVE AND 
REGARDING WHAT YOU SAID THAT 
IT'S HARD TO SPOT AN EXIT. 
THAT'S BECAUSE THE NECESSARY 
TECHNOLOGY HAS EMERGED ONLY 
VERY RECENTLY. 
THE NEURAL NETS WE'RE USING 
WERE DESIGNED LAST YEAR OR EVEN 
THIS YEAR AND WE'RE TRYING NEW 
STUFF. 
SO THAT'S THE REASON. 
>> ALL RIGHT. 
ONE MORE ROUND OF APPLAUSE FOR 
MOLECULE ONE! 
SO OUR NEXT STARTUP IS NOT A 
REGULAR STARTUP BATTLEFIELD 
COMPANY BUT INSTEAD A WILDCARD 
COMPANY. 
THAT MEANS THEY WERE IN THE 
STARTUP ALLEY. 
WE PLUCKED THEM OUT OF THE 
STARTUP ALLEY. 
EVERY OTHER BATTLEFIELD COMPANY 
HAS KNOWN FOR MONTHS THEY'LL 
COME ON STAGE. 
I THINK THIS COMPANY HAS MAYBE 
KNOWN A DAY. 
THAT SAID WE'VE HAD FINALISTS 
AND WINNERS COME FROM THE 
WILDCARD. 
THIS COULD BE JUST AS BIG AS 
ANYTHING ELSE. 
SO THE COMPANY WHICH I THINK I 
JUST SPOILED IS MY MILK AND 
PRESENTED FOR MY MILK ARE 
SHARONE MIRAMONTE AND RAVID 
SCHECHTER. 
>> SO WHEN I GAVE BIRTH TO MY 
FIRST BABY GIRL, I KNEW THAT 
BREASTFEEDING IS ONE OF THE 
STRONGEST HEALTH PROMOTING 
ACTIVITIES. 
SO I KNEW I WILL BREASTFEED, 
BUT BREASTFEEDING IS DIFFICULT. 
SO IN MY MIND IT WAS SUPPOSED 
TO BE THIS NATURALLY OCCURRING 
FUN PROCESS AND ALTHOUGH I HAD 
MANY MAGICAL MOMENTS, REALITY 
WAS REALLY DIFFERENT. 
BREASTFEEDING WAS TOUGH. 
SO I SAW A LACTATION CONSULTANT 
AT THE HOSPITAL, BUT I REALIZED 
THAT WHILE I WAS VERY STRICT 
AND MONITORED ALL THROUGH MY 
PREGNANCY, WHEN IT COMES TO 
BREASTFEEDING, THERE ARE NO 
OBJECTIVE TOOLS TO ASSESS 
INDIVIDUAL BREASTFEEDING AT 
ALL. 
SO I WAS INSTRUCTED TO COUNT 
DIAPERS AND TIME BREASTFEEDING 
SESSIONS. 
I'VE READ ALL THE INFORMATION I 
GOT AT THE HOSPITAL AND 
RESEARCHED TONS OF CONTENT 
ONLINE, BUT EVENTUALLY I WAS 
LEFT WITH TONS OF UNCERTAINTY. 
IS MY BABY BREASTFEEDING WELL? 
DO I PRODUCE ENOUGH MILK FOR MY 
BABY? 
WHY IS MY BABY CRYING? 
I WOULD HAVE PAID ANYTHING TO 
GET SOME CONTROL AND PEACE OF 
MIND AND MY STORY IS NOT 
UNIQUE. 
SO TODAY ALMOST ALL MOTHERS 
INITIATE BREASTFEED ONING, BUT 
BREASTFEEDING, MASTERING 
BREASTFEEDING, IS REALLY 
CHALLENGING AND MOST MOTHERS 
DON'T STAND WITH BREASTFEEDING 
FOR AS LONG OR AS EXCLUSIVE AS 
THEY ORIGINALLY DESIRED. 
SO TODAY OVER 100 MILLION 
MOTHERS INITIATE BREASTFEEDING. 
HOW DO WE GET THEM TO CONTINUE? 
SO THE MAIN REASON MOTHERS 
REPORT STOPPING BREASTFEEDING 
IS I DID NOT HAVE ENOUGH MILK. 
THIS IS WHY WE HAVE HELPED 
MOTHERS LIKE US BE PROACTIVE 
ABOUT THEIR BREASTFEEDING 
SUCCESS. 
SO WE'VE BASICALLY TRANSFORMED 
HUMAN MILK TO THIS POWERFUL 
DATA SOURCE THAT REFLECTS ON 
THE BREASTFEEDING PROGRESS AND 
BREAST MILK PRODUCTION 
MATURATION. 
SO THE BREAST MILK REALLY 
CHANGES IN THE FIRST HOURS, 
DAYS AND WEEKS AFTER BIRTH. 
IT CHANGES FROM EARLY TO MATURE 
MILK AND THIS IS WHERE MILEY 
COMES IN, A MOBILE HEALTH 
DEVICE AND APP FOR IMPROVING 
BREASTFEEDING THROUGH DIRECT 
BREAST MILK SENSING. 
LET'S SWITCH TO THE DEMO. 
SO BASICALLY FOR THE FIRST TIME 
EVER A MOTHER CAN INTRODUCE 
JUST A FEW DROPS OF MILK INTO 
THE MILEY CAN DEVICE AND 
APPLICATION AND RECEIVE 
IMMEDIATE FEEDBACK ABOUT HER 
BREAST MILK SUPPLY AND 
BREASTFEEDING ESTABLISHMENT 
PROCESS. 
WITH ADDITIONAL INFORMATION SHE 
PROVIDES TO THE SYSTEM SHE 
RECEIVES ADDITIONAL INSIGHT IN 
THE FORM OF VISUAL AND TEXTUAL 
REINFORCEMENT TIPS AND ALARMS 
FOR IMPROVING BREASTFEEDING AND 
SHE CAN SHARE THIS UNIQUE 
REPORT WITH A LACTATION 
CONSULTANT THROUGH THE 
APPLICATION. 
LET'S SWITCH BACK. 
NEXT SLIDE. 
NEXT SLIDE. 
OKAY. 
SO LET'S SEE THE TECH BEHIND 
THE MILEY. 
SO IN MY MILK WE BASICALLY 
ESTABLISH THE FIRST HUMAN MILK 
DEAD  DEDICATED CLINICAL 
LABORATORY WHERE WE'VE TESTED 
TENS OF THOUSANDS OF DATA 
POINTS LOOKING AT THIS 
DIFFERENCE BETWEEN EARLY MILK 
AND THIS PROGRESS TO MATURE 
MILK IN THE FIRST WEEKS AFTER 
BIRTH AND THE MILEY IS THE 
FIRST DEVICE TO TAKE THIS FROM 
THE LABORATORY DIRECTLY TO THE 
HAND OF THE BREASTFEEDING 
MOTHER. 
SO BASICALLY THE MILEY DEVICE 
SENSES THE ELECTROCHEMICAL 
PROPERTIES OF A TINY HUMAN MILK 
SAMPLE. 
THIS INFORMATION CORRELATES 
WELL WITH THE INFORMATION WE'VE 
ACCUMULATED IN OUR LABORATORY 
WITH A CHANGE IN MILK 
COMPOSITION. 
SO THIS INFORMATION IS 
TRANSMITTED TO THE SMARTPHONE 
DEVICE USING BLUETOOTH AND THEN 
OUR APP CALCULATES WHERE THE 
SPECIFIC SAMPLE IS AT ON THIS 
CONTINUUM TO MATURE MILK AND 
THEN IT GIVES VISUAL INDICATION 
REGARDING WHETHER THE SAMPLE IS 
DELAYED OR ADVANCED RELATIVE TO 
EXPECTED FROM THE SPECIFIC AGE 
OF THE BABY OR THE TIME THAT 
HAS PASSED SINCE BIRTH. 
OKAY. 
SO OUR COMPETITIVE LANDSCAPE 
INCLUDES BOTH BREASTFEEDING, 
TRACKING AND DIARY APPS AND 
TELEMEDICINE SERVICES APPS. 
THERE ARE ALSO TECHNOLOGIES 
ASSESSING DIRECTLY THE MILK 
FLOW FROM THE MOTHER TO THE 
BABY AND THERE ARE COMPANIES 
LIKE EVERLY WILL THAT OFFER 
DIRECT TO CONSUMER LABORATORY 
TESTING ASSESSING ANECDOTAL 
ANALYZE IN BREAST MILK. 
MY MILK IS THE FIRST AND ONLY 
INTEGRATED SOLUTION THAT 
GENERATES -- THAT UTILIZED OUR 
UNIQUE MILK SENSING ABILITIES 
TOGETHER WITH OUR CONSUMER 
CENTERED OR PATIENT CENTERED 
MOBILE HEALTH SOLUTION. 
OKAY. 
SO IN OUR BETA PILOT WE'VE 
SUCCESSFULLY TESTED A SYSTEM 
WITH LACTATION CONSULTANTS THAT 
HAVE SCANNED OVER 500 MOTHERS 
USING THE SYSTEM. 
THEY LOVE THE SYSTEM. 
THEY SAY IT'S LIKE SCIENCE 
FICTION AND A NEW VALUABLE TOOL 
IN THEIR TOOLBOX AND THAT THEIR 
MOTHERS LOVE IT. 
SO OUR BUSINESS MODEL IS 
BASICALLY SELLING THE DEVICE 
PLUS DISPOSABLES AND THE USE OF 
THE APP AND OFFERING PREMIUM 
SERVICES SUCH AS TELEMEDICINE 
SERVICES AND ADVANCE LAB 
TESTING SERVICES. 
THE GO TO MARKET STRATEGY IS 
THROUGH LACTATION CONSULTANTS 
AND ALSO DIRECT TO CONSUMERS 
AND IN THREE YEARS WE SEE MANY 
OF OUR CUSTOMERS COMING THROUGH 
THE HEALTHCARE SYSTEM WHEN 
INTEGRATING OUR TECHNOLOGY TO 
THE HEALTHCARE SYSTEM FOR 
ENABLING CONTINUUM OF CARE. 
>> WRAP IT UP. 
>> SO WE'VE BOTH GRADUATED AS 
PhDs OF SCIENCE. 
OUR TEAM INCLUDES BOTH A 
SOFTWARE PROFESSIONALS AND  
MOSTLY MOTHERS STRIVING TO 
IMPROVE MOTHERS OF GENERATIONS 
TO COME. 
WE KNOW THAT MILEY WILL BECOME 
A MUST HAVE DEVICE FOR 
IMPROVING BREASTFEEDING OF ALL 
BREASTFEEDING MOTHERS AND WE 
ARE EXCITED TO LAUNCH AS 
PRESALE HERE. 
THANK YOU. 
>> EXCELLENT. 
JUDGES. 
>> AS A LONG TERM CONSUMER OF 
THIS PRODUCT ONCE UPON A TIME, 
I WISH I HAD IT, I'LL JUMP IN. 
THERE'S BEEN NO TIME IN MY LIFE 
WHEN I'VE HAD MORE CHALLENGES 
OR BEEN MORE GOAL ORIENTED. 
SO THANK YOU. 
I'D LOVE TO KNOW EXACTLY WHAT 
IS THE AHA, LIKE WHAT IS THE 
SPECIFIC THING THAT I WOULD 
TELL A FRIEND OF MINE THAT'S 
JUST HAD A BABY THAT'S NURSING 
FOR THE FIRST TIME AS TO WHY 
YOU HAVE TO USE THIS PRODUCT? 
>> BEFORE MILEY YOU BASICALLY 
HAD NO OBJECTIVE SENSE OF 
WHAT'S GOING ON. 
AFTER MILEY YOU KNOW. 
SO YOU BOTH GET THE AHA MOMENT 
OF KNOWING WHAT'S GOING ON.  
MAYBE YOU WON'T GET IT ON YOUR 
FIRST MEASUREMENT, BUT WHILE 
YOU GO ON AND CONTINUE PERMITS 
DAILY AND RECEIVE MEASUREMENTS 
DAILY AND RECEIVE INSIGHTS, YOU 
START ACTING ON IT. 
>> I THINK THERE'S NOTHING MORE 
AKIN TO A NEW MOTHER LEARNING 
HOW TO DO THIS. 
SO IT'S A REALLY POWERFUL 
MOMENT ON. 
GIVE ME AN EXAMPLE OF AN 
INSIGHT OR TWO IN THE FIRST 
WEEK YOU MIGHT USE THE DEVICE? 
>> WE TELL BOTH THE LACTATION 
CONSULTANT AND THE MOTHER, SO 
THIS TECHNOLOGY IS ALSO MISSING 
VASTLY FROM THE HEALTHCARE 
SYSTEM AND ALSO LACTATION 
CONSULTANTS WHICH ARE THE GO TO 
PERSON WHEN IT COMES TO 
BREASTFEEDING ASSESSMENT, THEY 
DON'T HAVE AN OBJECTIVE TOOL 
AND THIS IS WHY THEY WERE THE 
FIRST ONES THAT WE APPROACHED 
WHEN ASSESSING OUR BETA DEVICE 
AND THEY SAY THIS IS SCIENCE 
FICTION THAT BECAME TRUE. 
I CAN'T BELIEVE THAT YOU KNOW 
WHAT'S GOING ON WITH THIS 
MOTHER FROM MILES AWAY THROUGH 
YOUR CLOUD. 
SO THIS WAS REALLY A WOW MOMENT 
WITH OUR LACTATION CONSULTANTS. 
SO WE CAN SEE WHETHER THEY 
MOTHER IS BREASTFEEDING IS 
INTRODUCES LARGE AMOUNTS OF 
FORMULA. 
WE KNOW THERE ARE DIFFERENCES 
BETWEEN BREASTS. 
WE KNOW WHEN THE MOTHER HAS 
EXPERIENCED SEVERE PAIN ONLY BY 
UNDERSTANDING THE SPECIFIC 
ANALYTICS OF HER MILK ON THE 
SPOT. 
>> ARE YOU MAKING LIKE 
DIFFERENT DIETARY 
RECOMMENDATIONS OR DIFFERENT 
RECOMMENDATIONS AS TO WHEN TO 
INTRODUCE FORMULA? 
>> SO MOST OF THE ESTABLISHMENT 
OF BREAST MILK IS A BEHAVIORAL 
PROCESS OF EDUCATION OF THE 
BREAST TO PRODUCE THE MILK. 
SO BY INTRODUCING AN EARLY 
FEEDBACK ABOUT HOW THE NUMBER 
OF BREASTFEEDING, IF SHE NEED 
TO INCREASE BETWEEN 
BREASTFEEDING EXPRESSION, IF 
SHE NEEDS TO INCLUDE A NIGHT 
BREASTFEEDING AND SO ON, THE 
SYSTEM CAN HELP HER AS EARLY AS 
CAN BE. 
>> BUT IN THE LABORATORY WE DO 
HAVE BREAST MILK COMPOSITION AS 
WELL AS NUTRITIONAL ANALYSIS 
DONE AS A DIRECT TO CONSUMER 
LABORATORY TESTING BASICALLY 
BEING LIKE THE 23 AND ME FOR 
BREAST MILK. 
SO WE DO THAT AS WELL IN THE 
LABORATORY AND WE PLAN TO MOVE 
SOME OF THESE CAPABILITIES TO 
THE DEVICE SOON AS WELL. 
BE. 
>> IS THE KEY WINDOW THAT FIRST 
TWO WEEKS WHEN YOU'RE SEEING 
THE CHANGES AND THEN DO I 
CONTINUE TO USE THE TEST 
THROUGHOUT OR IS IT REALLY JUST 
AT THE BEGINNING THAT  THERE'S 
THIS MOMENT OF CHANGE? 
>> THE FIRST REAL VALUE OF 
POSITION IS FOR THE FIRST DAYS 
TO WEEKS AFTER BIRTH. 
WE LOOK AT IT AS THE FIRST SIX 
WEEKS AFTER BIRTH MAINLY, BUT 
WE WILL INCLUDE ADDITIONAL 
SENSORS INTO THE SYSTEM THAT 
WILL ENABLE ACHIEVING 
ADDITIONAL INFORMATION SUCH AS 
NUTRITIONAL RECOMMENDATIONS, 
TAKING MORE AND MORE OF THE 
TECHNOLOGIES THAT WE KNOW HOW 
TO DO IN THE LAB AND PUT THEM 
IN THE DEVICE ITSELF AND ALSO 
THERE IS AN ABILITY TO SALE 
THROUGH THE APPLICATION AND 
RECEIVE ADVANCE TESTING 
LABORATORY TESTING. 
>> THANKS. 
>> AS A PARENT, I UNDERSTAND 
THE IMPORTANCE AND ALSO THE 
WILLINGNESS TO SPEND AGAINST 
YOUR CHILD'S NUTRITION. 
CAN YOU JUST TALK THROUGH HOW 
YOU THINK ABOUT THE POTENTIAL 
LIFETIME VALUE OF CUSTOMERS 
USING THIS SERVICE AND IT SORT 
OF FEELS INTUITIVELY THAT $300 
IS SORT OF INSUFFICIENT GIVEN 
THE COMPLEXITY OF THE DEVICE. 
SO WHAT ARE THE OPTIONS FOR YOU 
TO INCREASE THE LIFETIME VALUE 
PER CUSTOMER THAT YOU CAN 
GENERATE? 
>> WHEN WE'RE TALKING ABOUT 
$300 LIFETIME REVENUE, WE'RE 
BASICALLY LOOKING MAINLY ON 
THIS FIRST SIX MONTHS AFTER 
BIRTH, BUT WHEN IT CAN BE 
VASTLY EXTENDED WHEN WE EXTEND 
BEYOND BREASTFEEDING TO OUR 
MATERNAL AND INFANT-RELATED 
HEALTHCARE AND WELL BEING 
ISSUES IN THE FIRST TWO YEARS 
OF LIFE. 
SO WE SEE BREASTFEEDING AS A 
VERY EARLY STAGE WHEN WE CAN 
GAIN OR GIVE REAL VALUE 
PROPOSITION TO THE MOTHER AND 
THEN WE CAN OFFER ADDITIONAL 
VALUES THROUGH THERE. 
>> WHICH COULD BE 10 TIMES THAT 
300 OR DO YOU HAVE ANY BALLPARK 
NUMBER? 
>> WE CALCULATED UP TO 2,000, 
BUT I THINK THERE IS REALLY -- 
THIS IS THE UPPER LIMIT WHEN IT 
COMES TO DIRECT SENSING WHETHER 
IT'S ANY BIOSCIENCING WITH THE 
DEVICE, BUT THEN WHEN WE HAVE 
SUCH A LARGE CONSUMER BASE, WE 
CAN BASICALLY BRING IT UP 
ANYWHERE. 
>> WE ARE OUT OF TIME. 
SO GIVE IT UP FOR OUR WILDCARD 
COMPANY, MY MILK! 
THAT CONCLUDES  SEX -- SESSION 
TWO OF THE STARTUP BATTLEFIELD. 
ONE MORE TIME GIVE IT UP FOR 
OUR JUDGES! 
>> WELL DONE. 
>> I SAID YOU KNOW WHAT? 
IT'S TIME FOR ME TO MOVE ON AND 
LOOK FOR GREATER THINGS AND 
HAVE MORE IMPACT. 
>> AT LOCKHEED MARTIN WE'RE ON 
A MISSION. 
YOUR MISSION. 
>> 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. 
>> LADIES AND GENTLEMEN, PLEASE 
WELCOME BACK JORDAN CROOK. 
>> AND THE CROWD GOES WILD. 
THANK YOU. 
YOU GUYS ARE TOO TIRED TO 
LAUGH, TOO. 
WE HAVE SO MUCH EXCITEMENT 
COMING UP. 
DID EVERYBODY HAVE A GOOD DAY 
SO FAR? 
YEAH. 
ME, TOO. 
OKAY. 
WE'VE GOT ONE MORE PANEL AND I 
BET YOU GUYS ARE EXCITED AS I 
AM. 
SO I'M NOT GOING TO DILLY-DALLY 
ANYMORE. 
PLEASE WELCOME TO THE STAGE 
FROM SNAP TRAVEL HUSSAIN FAZAL, 
FROM SC30 INC., BRYANT BARR AND 
STEFAN CURRY AND YOUR MODERATOR 
MEGAN ROSE DICKEY. 
BIG ROUND OF APPLAUSE, PLEASE. 
>> THE STAGE IS BIGGER. 
>> I WAS AT THE PIER LAST TIME. 
THIS IS DEFINITELY BIGGER AND A 
LOT MORE PEOPLE. 
>> WE UPGRADED FOR YOU. 
>> A LOT OF CRUMPLE GRADES  
UPGRADES GOING ON IN MY LIFE 
RIGHT NOW, CHASE CENTER AND 
ALL. 
>> THESE DAYS WE'RE HEARING 
ABOUT A LOT OF ATHLETES AND 
CELEBRITIES ALIKE INVESTING IN 
TECH STARTUPS. 
MAYBE WE CAN KIND OF KICK 
THINGS OFF HEARING ABOUT WHY 
YOU'RE INTERESTED IN STARTUPS. 
>> FIRST IT'S JUST ABOUT 
OPPORTUNITY. 
I HAVEN'T BEEN HERE FOR 10 
YEARS. 
YOU START TO MEET PEOPLE, KIND 
OF GET INTO THE SCENE A LITTLE 
BIT AND UNDERSTAND HOW I CAN 
BRING MY PERSONALITY, MY TEAM 
ALONG AND REALLY LEARN HOW I 
WANT TO KIND OF GO ABOUT IT. 
AT FIRST IT KIND OF STARTED 
PURE INTRIGUE AND WANTED TO 
KIND OF GET YOUR FEET WET AND 
LEARN. 
WE HAD A HISTORY OF A STARTUP 
OF OUR OWN. 
BEING ON THAT SIDE AND NOW FROM 
THE INVESTMENT STANDPOINT. 
SO IT'S JUST EXCITING TO BE 
ABLE TO MEET AMAZING FOUNDERS 
THAT ARE PURPOSE DRIVEN, HAVE 
SIMILAR MINDSETS AND MISSIONS 
THAT WE DO AND IN LINE WITH 
THEM AND KIND OF GO ON THAT 
JOURNEY. 
RIGHT NOW OBVIOUSLY BEING IN 
THE NBA, THAT'S A VERY SHORT 
PERIOD OF MY LIFE. 
SO FROM 21 TO HOPEFULLY I CAN 
PLAY ANOTHER SIX YEARS AND YOU 
THINK WHAT DO YOU WANT TO DO 
THE REST OF YOUR LIFE? 
WE'RE HOPEFULLY SETTING UP THE 
GROUNDWORK AND THE FRAMEWORK 
FOR SUCCESS IN THIS SPACE AND 
DOING IT OUR WAY AND REALLY 
ENJOYING THE RIDE. 
AGAIN, BEEN FORTUNATE TO HAVE A 
GREAT TEAM BEHIND ME THAT'S ON 
THIS JOURNEY WITH ME. 
>> SO YOU AND BRYANT WERE 
COLLEGE ROOMMATES AND BACKSTAGE 
YOU TOLD ME YOU'RE THE BEST 
FRIENDS. 
>> EXACTLY. 
TWO GUYS IN THE WOLFPACK. 
WE'RE GOOD. 
>> SO CAN YOU KIND OF WALK ME 
LIEU. 
YOU AND BRYANT WORK CLOSELY 
TOGETHER AT SC30 AND YOU LANDED 
ON HUSSAIN'S STARTUP SNAP 
TRAVEL AS YOUR THIRD 
INVESTMENT, I BELIEVE. 
CAN YOU WALK ME THROUGH HOW YOU 
WERE INTRODUCED TO HUSSAIN AND 
WHAT LED YOU TO WANT TO INVEST. 
>> I'LL LET BRYANT TALK ABOUT 
HOW KIND OF OUR FIRST 
INTERACTION WENT. 
>> YEAH. 
WE MET THROUGH AN INVESTOR, 
SOMEONE LEADING A ROUND IN SNAP 
TRAVEL THAT I HAD MET A FEW 
YEARS PREVIOUSLY AND I WAS 
SITTING DOWN JUST HAVING A 
CONVERSATION ABOUT COMPANIES HE 
WAS LOOKING AT, THINGS THAT HE 
WAS SEEING. 
WE WERE TALKING A LITTLE BIT 
ABOUT HOW WE WERE THINKING 
ABOUT GETTING INTO INVESTING 
AND HUSSAIN HAD A MEETING WITH 
HIM RIGHT AFTERWARDS. 
SO WE WERE UP HERE IN SAN 
FRANCISCO. 
HUSSAIN WALKED IN AND SAID 
SOMETHING LIKE HEY, TELL HIM A 
LITTLE ABOUT WHAT YOU'RE DOING. 
SO HE SPENT 10 MINUTES TALKING 
AND ONE THING LED TO ANOTHER. 
WE PROBABLY SPENT THE NEXT FOUR 
TO SIX WEEKS KIND OF DIGGING 
IN. 
WE STARTED GETTING INTO A DUE 
DILIGENCE PROCESS WITH SNAP 
TRAVEL AND ULTIMATELY ENDED UP 
PARTICIPATING IN THAT ROUND OF 
FUNDING. 
>> I HAD A HUGE DILEMMA BECAUSE 
ANY TIME YOU BRING SOMETHING, I 
KNOW THEY HIT IT OFF AND 
THERE'S A GREAT OPPORTUNITY 
THERE, KIND OF HIT ME IN THE 
HEART A LITTLE BIT. 
HE WAS A RAPTOR FAN. 
I WAS LIKE I LIKE YOU, BUT I 
DON'T LIKE THE TEAM THAT YOU'RE 
RIDING WITH. 
>> I GOT TO GO TO HIS OFFICE 
BASED IN TORONTO AND MEET THE 
ENTIRE TEAM THAT'S MAKING SNAP 
TRAVEL A SUCCESS, DID A Q AND A 
AND GOT SOME FACE TIME WITH 
THEM TO SEE WHAT WAS GOING ON 
AND HOW THEY WERE BUILDING. 
IT WAS A PRETTY COOL 
INTRODUCTION AND OPPORTUNITY. 
>> HUSSAIN, WHAT WAS YOUR PITCH 
LIKE TO STEPH AND TO BRYANT? 
DID YOU TAILOR IT THE SAME WAY 
YOU WOULD A MORE TRADITIONAL VC 
OR ANGEL INVESTOR? 
WHAT WAS THAT LIKE FOR YOU? 
>> IT'S PRETTY SIMILAR. 
OBVIOUSLY I SPENT A LOT OF TIME 
TALKING ABOUT THE PRODUCT. 
SO IT WAS JUST SHOWING BRYANT 
-- 
>> HIS MIC'S NOT WORKING. 
>> CAN YOU CHECK HUSSAIN'S MIC, 
PLEASE. 
>> KEEP TALKING. 
>> THEY DID COME TO LISTEN TO 
YOU. 
WE'LL WAIT. 
>> KEEP GOING. 
>> CAN YOU HEAR? 
>> ALL RIGHT. 
PEOPLE DO WANT TO HEAR ME. 
THAT'S COOL. 
>> THEY DO. 
>> FOR ME IT WAS JUST A 
STANDARD PITCH. 
I JUST SHOWED BRYANT THE 
PRODUCT. 
HE LIKED IT. 
HE WAS REALLY INTO IT. 
JUST KIND OF FOR THE BENEFIT OF 
EVERYBODY IN THE AUDIENCE, WHAT 
SNAP TRAVEL IS, WE ALLOW YOU TO 
BOOK A HOTEL ROOM OVER 
MESSAGING. 
SO YOU CAN PICK UP YOUR PHONE 
THE SAME WAY YOU'D MESSAGE YOUR 
FRIEND. 
YOU CAN MESSAGE SNAP TRAVEL. 
YOU CAN SAY HEY, I NEED A HOTEL 
IN SAN FRANCISCO TOMORROW 
NIGHT. 
WE HAVE A BUNCH OF MACHINE 
LEARNING TECHNOLOGY THAT WILL 
PICK THE BEST DEALS FOR YOU AND 
PRESENT YOU WITH HOTEL DEALS. 
I DID THE STANDARD. 
AND STANDARD DEMO TO BRYANT. 
HE LIKED IT ENOUGH TO GO 
THROUGH THE DUE DILIGENCE 
PROCESS AND WE WENT THROUGH 
FOUR TO SIX WEEKS OF DUE 
DILIGENCE BACK AND FORTH BEFORE 
HE WAS SOLD, BROUGHT IT TO 
STEPH. 
STEPH LIKED IT. 
THEN WE GOT TOGETHER IN 
TORONTO. 
>> IS THAT GENERALLY HOW IT 
WORKS? 
BRYANT, DO YOU KIND OF DO THE 
FIRST ROUND OF DUE DIFFICULT  
DILIGENCE AND, STEPH, DO YOU 
DECIDE IF IT WORKS? 
>> I THINK WE TRY TO FINE TUNE 
THE STRATEGY IN TERMS OF THAT 
PROCESS. 
SO OBVIOUSLY BRYANT IS OUT, THE 
WORKHORSE, TAKING MEETINGS, 
GETTING INTRODUCTIONS, GOING TO 
PURSUE COMPANIES THAT WE'RE 
INTERESTED IN. 
WE'LL PUT THE DECISION THROUGH 
OUR FILTERS THAT WE DESIGNED 
AND WE THINK WORK FOR US. 
WE CHECK THE BOXES. 
YOU KIND OF GET A MAJORITY, 
SOMETIMES RIGHT ON THE LINE AND 
THEN WE HAVE A CONVERSATION 
AROUND IT. 
OBVIOUSLY I GET TO MEET THE 
FOUNDERS, THE TEAM IN MOST 
CASES AND YOU TRY TO MAKE AS 
MANY EDUCATED DECISIONS AS YOU 
CAN AND HOPEFULLY WE'RE 
BUILDING THAT THESIS AND 
STRATEGY AROUND WHAT WE'RE 
TRYING TO DO AND HAVE SOME 
SUCCESSES ALONG THE WAY. 
WE'RE STILL YOUNG. 
INVESTMENT'S IN. 
IT'S PRETTY COOL THAT TO BUILD 
IT AND FINE TUNE IT AS WE GO 
BECAUSE WE'RE OBVIOUSLY ALWAYS 
ABOUT LEARNING. 
REQUESTBRYANT, YOU CAN PROBABLY 
SPEAK WHAT IT'S LIKE 
REPRESENTING THE INVESTMENT 
SPACE. 
>> WE'RE A CONSTANT WORK IN 
PROGRESS. 
WE HAVE A VISION WHERE WE LIKE 
TO GO AND IT'S HOW DO WE MAKE 
CONSISTENT STRIDES TO THAT. 
WE ALMOST THINK OF OURSELVES AS 
A SMALL FUND. 
IT'S INVESTING STEPHON'S 
CAPITAL, BUT DUE DILIGENCE, 
HUSSAIN CAN SPEAK TO THAT. 
WE AREN'T WRITING A CHECK 
BECAUSE A REPUTABLE 
INSTITUTIONAL VC IS LEADING 
AROUND AND SAYING THIS IS A 
GOOD BET LIKE WE'RE TREATING 
THIS AS HEY, WE HAVE TO MAKE 
SOUND INVESTMENT DECISIONS. 
HOW DO WE THINK ABOUT IT AS A 
FIT  FOR STEPHON IN OUR OVERALL 
ECOSYSTEM TO ADD VALUE? 
I THINK WITH A LOT OF COMPANIES 
THEY SEE A CELEBRITY INVESTOR 
AND THINK OF TWEETS AND 
INSTAGRAM POSTS. 
LIKE HE'S NOT JUST A CUSTOMER 
ACQUISITION VEHICLE. 
THAT'S NOT THE WAY THAT WE WANT 
TO CONSIDER HOW WE CAN ADD 
VALUE AND SO WE WANT TO MAKE 
SURE WHEN WE'RE LOOKING AT 
COMPANIES, YEAH, WE BELIEVE 
IT'S A GOOD INVESTMENT. 
WE BELIEVE IN THE FOUNDERS, THE 
TEAM. 
YOU'RE BETTING ON THE TEAM AT 
THE END OF THE DAY AND WE WANT 
TO MAKE SURE WITHIN OUR 
ECOSYSTEM OF BRAND 
PARTNERSHIPS, THE MEDIA 
RELATIONSHIP, OTHER PORTFOLIO 
COMPANIES AND ON THE FOUNDATION 
SIDE WE'RE ABLE TO FIND WAYS TO 
ADD VALUE INTO THE COMPANIES 
WE'RE INVESTING IN. 
>> I CAN SPEAK TO SOME OF THAT 
VALUE. 
THERE'S A FEW THINGS SC30 HAS 
BEEN SUPER HELPFUL WITH SO FAR. 
ON THE CONSUMER SIDE FOR A LOT 
OF PEOPLE THEY CAN ONLY AFFORD 
MAYBE ONE TRIP OR TWO TRIPS A 
YEAR MAX. 
THEY PROBABLY HAVEN'T HEARD OF 
SNAP TRAVEL. 
WHEN THEY GO AND GOOGLE AND SAY 
SHOULD I SPEND $1,000 AND BOOK 
A TRAVEL WITH SNAP TRAVEL AND 
SEE STEPH AS AN INVESTOR, THAT 
GIVES THEM THE CONFIDENCE TO GO 
IN AND MAKE A BOOKING WITH US. 
ON THE CONSUMER SIDE STEPH WORE 
A SNAP TRAVEL HAT DURING THE 
NBA FINALS. 
>> THAT'S WHEN YOU KNOW I 
REALLY BELIEVE IN THE COMPANY. 
TORONTO-BASED COMPANY AND 
FINALS AGAINST THEIR TEAM. 
>> IN THE POSTGAME MEDIA 
CONFERENCE. 
BEYOND THE B2C SIDE THERE'S 
BUSINESS DEVELOPMENT 
OPPORTUNITIES. 
WHEN WE GO TO CHINA AND CHAT 
WITH ALIBABA AND 10-CENT, IT 
OPENS UP DOORS AND GETS US 
MEETINGS WE OTHERWISE WOULDN'T 
GET. 
THEY'RE LIKE OH, STEPH IS AN 
INVESTOR. 
YOU HAVE A STRONG BOND WITH 
CHINA. 
EVEN BEING ON STAGE TODAY, THE 
FACT STEPH IS HERE IS PROBABLY 
THE REASON I'M ON STAGE. 
>> NO COMMENT. 
STEPHON, YEAH, YOU WORE THE 
SNAP TRAVEL HAT. 
THAT WAS PROBABLY REALLY GREAT 
IT SOUNDS LIKE, BUT OTHER THAN 
KIND OF LIKE REPPING THE BRAND 
AND WHATNOT, WHAT KIND OF VALUE 
DO YOU SEE YOURSELF BRINGING TO 
LIKE SNAP TRAVEL OR ANY OF THE 
OTHER STARTUPS IN YOUR 
PORTFOLIO AT THIS POINT? 
>> I THINK BRYANT ALLUDED TO 
IT, BUT ACROSS THE FOUR PILLARS 
WE WORK IN THERE'S A LOT OF 
OPPORTUNITIES TOLEVERAGE THE 
ENTIRE PLATFORM, WHETHER IT'S 
THE INTRODUCTION OR VIDEO OR 
POSTS, THERE'S A LOT OF 
DIFFERENT WAYS WE CAN BE 
CREATIVE AND HAVE THAT CROSS 
POLLINATION ACROSS THE 
ECOSYSTEM THAT FOR US IS 
EXCITING BECAUSE THERE'S A 
MUTUALLY BENEFICIAL PLAY THERE 
AND WE'VE EVEN SEEN IT NOW, MY 
WIFE. 
WE JUST STARTED OUR EAT LEARN 
PLAY FOUNDATION. 
A LOT OF THINGS WE STARTED I 
THINK ABOUT NOW IN THE SPACE IS 
HOW CAN WE LEVERAGE THAT TO 
IMPACT THE COMMUNITY HERE IN 
OAKLAND AND CREATE A NICE WAVE 
OF MOMENTUM THROUGH THESE TYPE 
OF OPPORTUNITIES? 
AGAIN 12 MONTHS IN WE'VE HAD A 
LOT OF COOL EXPERIENCES IN THAT 
FRONT. 
I CAN ONLY SEE IT GETTING 
BIGGER AND BETTER. 
>> ARE THERE PARTICULAR SECTORS 
THAT YOU'RE MOST INTERESTED IN 
WITHIN THE TECH SPACE? 
>> THERE AREN'T ANY SPECIFICS 
WE'RE INTERESTED IN. 
I THINK BRYANT KIND OF TALKED 
ABOUT IT IN TERMS OF JUST ITS 
FOUNDERS, RIGHT? 
IT'S THE TEAM. 
IT'S THE PEOPLE YOU'RE PUTTING 
YOUR MONEY BEHIND AND YOUR 
BELIEF IN. 
THERE ARE SOME CATEGORIES THAT 
WE KIND OF STAY WAVE FROM, BUT 
-- 
>> WHAT ARE THOSE CATEGORIES? 
>> WE CALL IT LIFE SCIENCES AND 
BLOCKCHAIN. 
THOSE ARE THE TWO THAT KIND OF 
STAND OUT, BUT IN TERMS OF 
OTHER THINGS, IT'S JUST ABOUT 
USING OUR STRATEGY, OUR 
FILTERS, TO MAKE THESE SOUND 
DECISIONS, BELIEVING IN THE 
TEAM AND REALLY DIGGING IN. 
THIS ISN'T LIKE SOMETHING THAT 
WE TAKE LIGHTLY.  
BRYANT TALKED ABOUT OUR DUE 
DILIGENCE. 
TIMES WE'VE HER  HEARD FEEDBACK 
FROM FOUNDERS. 
>> ARE YOU ABLE TO LET US KNOW 
JUST HOW MUCH MONEY YOU'VE 
INVESTED IN TECH STARTUPS AT 
THIS POINT? 
>> I MEAN WE WON'T TALK 
PUBLICLY ABOUT EACH OF OUR 
INVESTMENTS, BUT EVERY 
INVESTMENT IS AT LEAST SIX 
FIGURES. 
I THINK THAT'S KIND OF WHAT 
WE'RE COMFORTABLE WITH SHARING. 
IT'S NOT A NOMINAL SIZE CHECK, 
BUT WE'RE CERTAINLY NOT 
STEPPING UP TO TRY AND LEAD 
AROUND ANY TIME SOON. 
>> OKAY. 
IN GENERAL, ARE YOU LOOKING AT 
LIKE SERIES A, SERIES B LEVEL 
OR I GUESS WHICH LEVEL ARE YOU 
LOOKING TO GET IN THAT? 
>> ACROSS OUR EIGHT HAVE. 
S  INVESTMENTS TO DATE IT'S 
BEEN SERIES A, B, C. WE WANT TO 
SEE A REPUTATIONAL SERIES 
INVESTOR, SOMEBODY WE CAN LEAN 
ON THROUGH THE DUE DILIGENCE 
PROCESS. 
FOR US THIS IS AN EDUCATIONAL 
PROCESS AS WELL. 
THERE'S A LOT WHERE HE DON'T 
KNOW AS TWO PEOPLE RELATIVELY 
NEW TO THE SPACE. 
HOW CAN WE SURROUND OURSELVES 
AROUND PEOPLE WHO HAVE DONE IT 
A LOT LONGER, HELP US DIG 
DEEPER AND UNDERSTAND THINGS WE 
MIGHT BE MISSING. 
WE WANT TO SEE VERIFIABLE 
MARKET TRACTION. 
HAVE YOU HIT PRODUCT MARKET FIT 
AND ARE READY TO THROW SOME GAS 
ON THE FIRE AND ARE READY TO 
SCALE THE BUSINESS? 
WE'LL PAY A SLIGHTLY HIGHER 
VALUATION TO PULL THAT RISK 
BACK A LITTLE BIT TO WHERE 
WE'RE MORE CONFIDENT THE WAYS 
WE CAN ADD VALUE WHETHER IT'S 
THROUGH RELATIONSHIPS AT A 
CUSTOMER LEVEL, BUILDING THAT 
TEAM, ET CETERA, CAN MOVE THE 
NEEDLE FOR THE COMPANY AND 
THEY'RE READY TO DO THAT. 
>> YOU MENTIONED NEEDING TO 
EDUCATE YOURSELVES AROUND 
STARTUPS AROUND SILICON VALLEY. 
STEPH, WHAT IS YOUR PROCESS FOR 
MAKING SURE THAT YOU'RE REALLY 
LIKE UP TO DATE ON EVERYTHING 
THAT'S HAPPENING IN THE 
ECOSYSTEM AND THAT YOU'RE NOT 
GOING TO MISS OUT ON A BIG 
OPPORTUNITY POTENTIALLY? 
>> JUST LEANING ON MY TEAM. 
I HAVE A FULL-TIME JOB THAT 
REQUIRES A LOT OF MY ATTENTION 
AND TIME INVESTMENT, BUT WHEN 
IT COMES TO HAVING THE 
PERSPECTIVE AROUND WHO WE CAN 
CONNECT WITH AND KIND OF LEAN 
ON TO MAKE THOSE SOUND 
DECISIONS, WHERE I CAN KIND OF 
PUT MY CONFIDENCE IN THE TIME 
AND INVESTMENT I WANT TO BUT 
INTO IT BECAUSE LIKE BRYANT 
WILL TELL YOU, I'M ALL IN ON 
OUR WEEKLY UPDATES, OUR KIND OF 
PERIODICAL UPDATES ON THE 
PORTFOLIO COMPANIES AND HOW 
THEY'RE DOING, HOW DIFFERENT 
SECTORS ARE MOVING AND THINGS 
LIKE THAT, SO THAT PROCESS IS 
STILL FORMALIZING ON A 
CONSISTENT BASIS, BUT I'M ALL 
IN AND THAT'S BEEN THE FUN PART 
ABOUT IT. 
>> HOW AVAILABLE DO YOU MAKE 
YOURSELF TO THE FOUNDERS IN 
YOUR PORTFOLIO? 
>> A GOOD AMOUNT. 
>> YEAH? 
HUSSAIN, DO YOU -- 
>> I CONCUR. 
IT'S ACTUALLY A LOT MORE THAN I 
EXPECTED. 
INITIALLY WHEN I WAS PRIMARILY 
DEALING  WITH BRYANT, I THOUGHT 
STEPH WOULD KIND OF SHOW UP AND 
SAY HI, SHAKE SOME HANDS, KISS 
SOME BABIES, BUT HE ACTUALLY 
SPEND QUITE A BIT OF TIME. 
THERE WAS A SUMMIT WE HOSTED A 
FEW WEEKS AGO AND STEPH WAS 
THERE THE ENTIRE TIME, TWO, 
THREE DAYS, BEEN A LOT MORE 
INVOLVED THAN I WOULD HAVE 
EXPECTED. 
IT'S BEEN AWESOME. 
>> STEPH DIGS IN IN TERMS OF 
TRYING TO BE UP TO DATE WITH 
EVERYTHING. 
THE SUMMIT THAT WE HAD WAS 
ACROSS OUR ENTIRE ECOSYSTEM, 
EVERY FOUNDER FROM OUR 
PORTFOLIO COMPANIES WAS THERE 
ALONG WITH PEOPLE LIKE 
UNDERARMOUR, J.P. 
MORGAN CHASE, MEDIA PARTNERS, 
ET CETERA. 
A COUPLE WEEKS AGO WE WENT TO 
THE FORBES CLOUD 100 EVENT AND 
NOT JUST TO THE DINNER, BUT WE 
STRATEGICALLY SET UP ABOUT 90 
MINUTES BEFORE THE DINNER TO 
MEET WITH KNIFE DIFFERENT 
COMPANIES AND DIG IN AND GET TO 
KNOW WHAT ARE YOU DOING? 
ALL ENTERPRISE COMPANIES A 
LITTLE DIFFERENT THAN HE MIGHT 
HAVE SEEN BEFORE, SERIES A TO 
COMPANIES THAT ARE A BILLION 
PLUS PROBABLY ON THE WAY TO AN 
IPO IN THE NEXT FEW YEARS FOR 
HIM TO UNDERSTAND WHAT DOES 
THAT SPECTRUM LOOK LIKE AND 
WHAT DOES IT MEAN WHEN YOU'RE A 
COMPANY RAISED AT A $1 BILLION 
EVALUATION VERSUS A $50 BILLION 
EVALUATION. 
SO HE'S MAYBE BEING A LITTLE 
MODEST IN HOW HE'S CARVING OUT 
TIME TO MAKE HIMSELF AVAILABLE. 
ON A WEEKLY BASIS HE KNOWS 
COMPANIES COMING INTO THE 
FUNNEL HEY, WE'RE HERE FROM A 
DUE DILIGENCE PERSPECTIVE. 
HERE'S HOW WE'RE WORKING DOWN 
IN THE FUNNEL. 
WE'RE GETTING CLOSE TO TALKING 
ABOUT TERMS. 
HE SEES THAT THE WHOLE WAY 
THROUGH. 
WE SEARCH AN INVESTMENT MEMO TO 
HIM AT THE END LIKE FINAL 
RECOMMENDING AND POP QUIZ HIM 
AND HE HASN'T FAILED YET. 
WE'LL GET HIM AT SOME POINT. 
>> IS HE GETTING 100%? 
>> YES. 
>> YES. 
>> SO YOU'VE MADE EIGHT HAVE. 
S TO  INVESTMENTS TO DATE. 
WHY AREN'T YOU DISCLOSING ALL 
OF THEM? 
WE KNOW THREE. 
>> ACTUALLY WHY ARE WE NOT? 
WHY WOULD YOU SAY THE STRATEGY? 
>> YEAH. 
WE MADE THREE INVESTMENTS LAST 
YEAR THAT WERE ALL MADE PUBLIC. 
UP UNTIL THAT POINT IN TIME 
STEPHON WASN'T REALLY INVESTING 
IN THAT SPACE, MAYBE HERE AND 
THERE, SOMETHING THAT WOULD 
COME UP. 
WE WANTED PEOPLE TO KNOW WE 
WERE ACTIVELY LOOKING TO BEGIN 
INVESTING FROM A VENTURE 
PERSPECTIVE. 
I THINK AS WE LOOK AT THE 
COMPANIES NOW, WE DON'T WANT TO 
BE SO QUICK TO JUMP INTO THE 
EASY WAYS OF PROMOTING A 
COMPANY. 
SO WE'RE DOING A LOT OF THINGS 
BEHIND THE SCENES. 
TO US IT'S A LITTLE BIT OF A 
DATING PROCESS. 
LET'S GET TO KNOW EACH OTHER. 
HOW DO WE FIND WAYS TO ADD 
VALUE? 
LET'S MAKE SURE WHEN WE TALK 
ABOUT THE RELATIONSHIP 
PUBLICLY, WE ARE ABLE TO STAND 
UP PROUD AND SAY THESE ARE ALL 
THE THINGS WE'RE DOING TO 
SUPPORT THIS INVESTMENT AND 
THIS COMPANY. 
SOMETIMES THAT TAKES LONGER TO 
BUILD UP. 
RATHER THAN ISSUE A GENERIC 
PRESS RELEASE HEY, WE MADE AN 
INVESTMENT, THAT DOESN'T REALLY 
MOVE THE NEEDLE FOR ANYBODY, 
BUT HOW DO WE CONTINUE TO WORK 
AND BUILD STRATEGICALLY AND SAY 
THIS IS A WAY WE'RE BUILDING 
MATERIAL STRAW FOR YOU AND YOUR 
AND THIS THEN LET'S TALK ABOUT 
IT. 
>> HUSSAIN, WAS THAT KIND OF 
YOUR EXPERIENCE WITH THEM I 
GUESS FROM THE POINT OF 
RECEIVING THE INVESTMENT TO 
PUBLICLY TALKING ABOUT IT? 
>> YEAH. 
THERE'S DEFINITELY A PERIOD 
WHERE WE GOT TO GET TO KNOW 
EACH OTHER. 
THEY HAVE TO UNDERSTAND THE 
BUSINESS UNTIL I THINK THEY'RE 
BOTH VERY COMFORTABLE WITH 
MAKING IT MORE PUBLIC AND 
MAKING THE ANNOUNCEMENT. 
>> STEPHON, HOW MANY 
INVESTMENTS ARE YOU GENERALLY 
LOOKING TO MAKE? 
DO YOU HAVE GOALS IN PLACE LIKE 
BY THE END OF 2020 I WANT TO BE 
INVESTED IN THIS MANY 
COMPANIES. 
I WANT TO PUT THIS AMOUNT OF 
MONEY INTO THEM? 
>> WE'VE BROKEN IT DOWN PRETTY 
MUCH INTO A YEAR TO YEAR BASIS 
SETTING ASIDE A CERTAIN 
ALLOTMENT. 
BRYANT TALKED ABOUT OUR CHECK 
SIZE AND SPREADING ON IT'S 
ACROSS MULTIPLE INVESTMENTS. 
IT TAKES TIME TO DO DUE 
DILIGENCE AND SOURCE THESE 
DEALS AND OPPORTUNITIES AND 
MAKE SOUND DECISIONS. 
I DON'T EVER LIKE SETTING A 
QUOTA FOR THE YEAR, SO WE GET 
TO THE END OF THE YEAR AND SAY 
WE WANT TO MAKE EIGHT AND RUSH 
TO TWO TO MAKE THE GOAL. 
THERE'S KIND OF A SOFT QUOTA 
BETWEEN FOUR TO SIX A YEAR 
WHERE YOU'RE TRYING TO BE 
ACTIVE IN THE SPACE AND MAKE 
SURE YOU TAKE ADVANTAGE OF 
OPPORTUNITIES LIKE SNAP TRAVEL 
LIKE WE HAVE WHERE WE HAD 
INTRODUCTION. 
WE WENT THROUGH THE PROCESS. 
IT MADE SENSE FOR BOTH SIDES 
AND WE GOT IT DONE. 
THAT'S AN ACTIVE PROCESS THAT'S 
GOING ON CONSTANTLY. 
>> I THINK ONE OF THE THINGS 
YOU GUYS ARE LOOKING FOR IS THE 
MARKET TRACTION. 
SO WHEN WE CAME TO BRYANT WITH 
THE SNAP TRAVEL OPPORTUNITY, WE 
WERE AT A POINT WHERE WE HAD 
ALREADY DRIVEN OVER 100 MILLION 
IN SALES OVER MESSAGING. 
SO IT'S NOT A SMALL BUSINESS, 
BY ANY MEANS. 
THE PRODUCT MARKET THAT WAS 
THERE, WE'VE BEEN GROWING 
DOUBLE DIGIT QUARTER OVER 
QUARTER. 
WE HAVE PLANS TO GET TO A 
BILLION BY 2021. 
THERE'S BEEN A LOT OF MARKET 
TRACTION. 
I THINK THAT'S A LOT OF WHAT 
THEY'RE LOOKING FOR. 
>> I THINK AS WE  BUILD THE 
PORTFOLIO, WE WANT TO DO IT IN 
A SELECTIVE METICULOUS MANNER. 
WE WANT TO SAY HERE'S OUR 
HYPOTHESIS WHY THEY'LL WIN AND 
BE ABLE TO LOOK BACK THREE, 
FOUR, FIVE YEARS DOWN THE LINE 
AND SAY THEY WON. 
WERE WE RIGHT? 
SO THAT WE CONTINUE TO ITERATE 
OVER TIME, BUT TO STEPHON'S 
POINT WE DON'T HAVE LPs. 
WE'RE NOT FORCED TO DEPLOY 
CAPITAL. 
IF WE WERE TO COME TO STEPHON 
AND SAY HEY, I THINK WE SHOULD 
MAKE 10 INVESTMENTS THIS YEAR 
BASED ON WHAT OUR PIPELINE 
LOOKS LIKE. 
WE CAN DO THAT, RIGHT? 
IF WE SEE TWO COMPANIES WE 
REALLY LIKE, WE CAN DO THAT. 
THERE'S A NICE COMFORT IN 
KNOWING WE CAN PUSH IF WE WANT 
TO AND WE CAN PULL BACK IF 
WE'RE SEEING THINGS THAT AREN'T 
OF INTEREST. 
>> THERE'S AN ONGOING ISSUE IN 
SILICON VALLEY REGARDING THE 
LACK OF DIVERSITY AND 
INCLUSION. 
I'M WONDERING IF YOU HAVE ANY 
GOALS IN PLACE AROUND INVESTING 
IN PEOPLE OF COLOR OR WOMEN OR 
OTHER UNDERREPRESENTED PEOPLE 
IN THE TECH ECOSYSTEM. 
>> I THINK IT'S VERY IMPORTANT. 
IT'S PART OF WHO I AM AND KIND 
OF I THINK THE INSPIRATION ON 
THE BASKETBALL COURT, HOW THAT 
CAN BLEED OVER INTO TRUE IMPACT 
AND CHANGE IN THE INVESTMENT 
SPACE AND THE TECH STARTUP 
SPACE. I 
NEVER LIKE TO TALK ABOUT THINGS 
I'M ACTUALLY NOT DOING. 
IN TERMS OF WHAT I LIKE TO DO 
IN LEVERAGING MY BASKETBALL 
PLATFORM TO CREATE 
OPPORTUNITIES FOR WOMEN IN THE 
GAME OF BASKETBALL, WE'VE BEEN 
ABLE TO BUILD WELL ONLY CAMPS 
THAT HAVE BEEN PROUD TO HAVE 
THAT EXPERIENCE AND IT'S BEEN 
REALLY REWARDING. 
THOSE TRYING TO FIND LIKE 
MINDED PEOPLE, LIKE MINDED CEOs 
AND OPPORTUNITIES THAT IS A 
CORE VALUE FOR THEM AS WELL. 
SO IT'S ON OUR RADAR. 
WE DON'T HAVE A STANDARD KIND 
OF ASK IN TERMS OF WHAT THAT IS 
FOR EACH OPPORTUNITY, BUT 
THAT'S A QUESTION THAT COMES 
UP. 
HOW DO YOU APPROACH THIS? 
IS THIS IMPORTANT TO YOU? 
ARE YOU ACTIVELY MAKING CHANGES 
WITHIN YOUR ORGANIZATION THAT 
REFLECT WHAT OPPORTUNITY AND 
CHANGE SHOULD THERE BE? 
THAT GIVES US CONFIDENCE TO GET 
BEHIND YOU AS WELL. 
>> HOW DIVERSE WOULD YOU SAY 
YOUR PORTFOLIO IS RIGHT NOW? 
>> I THINK THE WAY THAT WE LOOK 
AT IT, WHEN WE FIRST STARTED, I 
THINK TO STEPHON'S POINT, WE 
UNDERSTAND THE IMPORTANCE OF 
ARE YOU INVESTING IN FOUNDERS, 
WHETHER IT'S MINORITIES, YOU 
KNOW, WOMEN FOUNDERS, ET 
CETERA? 
ONE OF THE THINGS AS WE STARTED 
EXPLORING HOW WE GET IN THIS 
SPACE, WE SPENT A LOT OF TIME 
AND I CONTINUE TO DO THAT, 
WHETHER IT'S FEMALE VCs OR 
FEMALE FOUNDERS AND TRY TO 
UNDERSTAND THEIR PERSPECTIVE 
AND ONE THING THAT WE QUICKLY 
LEARNED WAS TO MAKE AN IMPACT 
IT DOESN'T NECESSARILY NEED TO 
BE A FEMALE OR MINORITY FOUNDER 
YOU INVEST IN BUT WHAT ARE THEY 
DOING THROUGHOUT THE ENTIRE 
COMPANY? 
WHAT DOES THAT TOWARD LOOK 
LIKE? 
WHAT DOES THEIR EXECUTIVE TEAM 
LOOK LIKE? 
WHAT DOES THE ENTIRE EMPLOYEE 
BASE LOOK LIKE? 
I THINK SNAP TRAVEL IS A GREAT 
EXAMPLE.  
MAYBE YOU CAN TALK ABOUT IT A 
LITTLE BIT IN TERMS OF WHAT THE 
MAKEUP OF YOUR COMPANY IS. 
IT'S A QUESTION THAT COMES UP 
THROUGH EVERY DUE DILIGENCE 
PROCESS, HEY, WHAT'S THE 
STRUCTURE OF YOUR BOARD? 
WHAT'S YOUR EXECUTIVE TEAM LOOK 
LIKE? 
WE'RE STILL TRYING TO 
UNDERSTAND AND LEARN. 
WE DON'T NECESSARILY WRITE A 
BIG ENOUGH CHECK TO SAY YOU 
HAVE TO DO THIS. 
WE CAN WALK AWAY. 
WE WILL IF THAT'S NOT BEING 
REPRESENTED APPROPRIATELY. 
BUT WE'RE STILL TRYING TO 
FIGURE OUT WHERE WE CAN PUSH 
FOR OUR CHECK SIZE VERSUS SOME 
OF THE OTHER STUFF. 
>> WE'RE FORTUNATE BEING IN 
TORONTO IN SUCH A MULTI-
CULTURAL CITY, OVER 50% OF OUR 
EMPLOYEES ARE IMMIGRANTS 
OUTSIDE NORTH AMERICA. 
OVER 60% ARE VISIBLE 
MINORITIES. 
IT'S SOMETHING WE PUT A LOT OF 
IMPORTANCE ON. 
>> SO WE'RE JUST ABOUT OUT OF 
TIME, BUT, STEPHON, YOU KIND OF 
ALLUDE TO THIS EARLIER, BUT 
THAT THE INVESTING COULD KIND 
OF BE A POST NBA CAREER FULL 
TIME IS. 
THAT HOW YOU KIND OF SEE YOUR 
TRAJECTORY GOING? 
>> YEAH. 
I THINK THE OPPORTUNITY AND 
VISIBILITY WE HAVE AS NBA 
ATHLETES ESPECIALLY, YOU CAN 
TALK ABOUT GUYS NOT JUST IN 
BASKETBALL BUT ATHLETES OF ALL 
SPORTS HAVE KIND OF APPROACHED 
THIS SPACE. 
OUR EARNING POTENTIAL IS IN A 
VERY SHORT WINDOW, BUT HOW CAN 
YOU LEVERAGE THAT INTO 
OPPORTUNITIES THAT CAN SET YOU 
UP FOR GREAT SUCCESS POST 
CAREER, THOSE RELATIONSHIPS, 
THAT LEARNING EXPERIENCE WE 
TALKED ABOUT AND JUST KIND OF 
TAKING ADVANTAGE OF THE NOW SO 
THAT YOU SET UP LATER AND 
THAT'S BEEN A REALLY COOL 
EXPERIENCE. 
I'VE HAD SOME TEAMMATES THAT 
HAVE BEEN EXTREMELY INTERESTED. 
WE WANT TO GET TO A POINT WHERE 
WE CAN BE A LEADER IN THAT 
FRONT AND SAY THIS IS HOW WE DO 
IT. 
THIS IS KIND OF THE FRAMEWORK 
FOR BEING SUCCESSFUL IN THIS 
SPACE AND HAVE THAT BE A PROVEN 
CONCEPT AND BRING PEOPLE ALONG 
ON THAT JOURNEY DOWN THE ROAD. 
SO THAT'S THE LONG TERM GOAL. 
I'VE BEEN REALLY PROUD OF WHAT 
WE'VE BEEN ABLE TO BUILD SO 
FAR. 
SO HOPEFULLY MORE TO COME. 
>> YOU'VE CERTAINLY GIVEN US A 
LOT TO THINK ABOUT. 
SO THANKS SO MUCH FOR YOUR 
TIME. 
>> THANK YOU. 
>> THANK YOU. 
>> ON THE WAY OUT. 
ON THE WAY OUT. 
ON THE WAY OUT. 
ALL RIGHT. 
BEFORE YOU GET UP AND GO JUST A 
QUICK NOTE, I DON'T KNOW IF 
YOU'RE FAMILIAR WITH EXTRA 
CRUNCH. 
IT'S OUR PREMIUM PRODUCT AND 
WE'RE RUNNING A DEAL RIGHT NOW. 
SO IT'S $12 FOR THE FIRST YEAR. 
IT'S A STEAL, FOLKS. 
I'M TELLING YOU, IT'S A STEAL. 
IT'S GOT A LOT OF HOW TO GUIDES 
FOR LAUNCHING AND SCALING YOUR 
COMPANY. 
CHECK IT OUT. 
NORMAL PRICE IS 150 A YEAR. 
GO CHECK THAT OUT. 
CALL TIME'S 9:30 TOMORROW. 
THAT'S WHEN WE'LL GET STARTED. 
I CAN'T WAIT TO SEE YOU. 
YOU GUYS HAVE BEEN JUST SO MUCH 
FUN AS YOU ALL RUN TO THE EXITS 
WHILE I'M TALKING. 
LOVE YOU, TOO. 
BYE. 
