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