Live from Disrupt Berlin 2018 Day 1


>>>LADIES AND GENTLEMEN PLEASE TAKE YOUR SEATS. THE PROGRAM WILL BEGIN IN 15 MINUTES.>>>LADIES AND GENTLEMEN, PLEASE TAKE YOUR SEATS, THE PROGRAM WILL BEGIN IN 10 MINUTES.>>>LADIES AND GENTLEMEN, PLEASE TAKE YOUR SEATS, THE PROGRAM WILL BEGIN IN FIVE MINUTES.>>>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 TO THE STAGE, TECHCRUNCH EDITOR IN CHIEF, MATTHEW PANZARINO.>>>I’D PAY ALL OF YOU IF I KNEW THAT WAS THE RESPONSE I WOULD GET. WELCOME TO TECHCRUNCH DISRUPT, EUROPEAN SHOW FOR THE YEAR. HAPPY TO BE HERE IN BERLIN AGAIN, A WONDERFUL CITY, SUPER EXCITED ABOUT THE BREADTH OF THE SHOW WE’VE GOT THIS YEAR. WONDERFUL SET OF COMPANIES AND INTERESTING PEOPLE FROM ACROSS A BUNCH OF DIFFERENT SECTORS. WE THINK YOU’LL BE PLEASED. HIGHLIGHTS. START OUT WITH ROBORACE, CAR OVER HERE, CHECK IT OUT, INSANE. AUTOMATED VEHICLE THAT RUNS ON AI AND CAMERAS, WORKING WITH PILOTS AND AR AND XR TO DO DO THINGS. WE HAVE TAXIFY, VIA AND LOCAL GLOBE. IN THE AFTERNOON, BATTLEFIELD SESSION. SPENT A LOT OF TIME, MONTHS AND MONTHS TO GATHER MOST AMAZING, YOUNG, INTERESTING, COMPLETELY FRESH COMPANIES FROM EUROPE AND SURROUNDING AREA. WILL GET ON STAGE, BE GRILLED BY JUDGES AND HOPEFULLY YOU WILL SEE THE PROCESS AS YOU WOULD IN THE PITCHING ROOM. WE’LL CHOOSE FINALISTS TO BATTLE IT OUT TOMORROW FOR GRAND PRIZE. THANKS AGAIN FOR BEING HERE. WE’RE HAPPY TO HAVE YOU. ENJOY THE SHOW.>>>LADIES AND GENTLEMEN PLEASE WELCOME TO THE STAGE, TECHCRUNCH EDITOR AND DISRUPT EMCEE, JORDAN CROOK.>>WHAT’S UP? HOW WE DOING? SO MUCH ENERGY. YOU GUYS WIN BY THE WAY TODAY, FOR BEING HERE AT THE START. EVERYONE WHO IS CURRENTLY SEATED IN SEAT, CHECK UNDERNEATH, THERE IS A PUPPY UNDER THERE FOR YOU. THANK YOU FOR THAT ONE LAUGH, FRONT ROW, APPRECIATE IT. GREAT SHOW LIKE MATTHEW SAID. COUPLE OF HOUSEKEEPING NOTES. GOING TO BE NEXT STAGE STUFF AND EXTRA PROGRAMMING ALL AROUND, SO MAKE SURE YOU’RE PAYING ATTENTION TO THE AGENDA. I’LL BE SURE TO CALL OUT HIGHLIGHTS THAT MIGHT NOT BE HAPPENING ON THIS STAGE SO YOU KNOW WHERE TO GO. ANOTHER THING, IF YOU WANT TO PARTICIPATE ON SOCIAL MEDIA, USE THE #TCDISRUPT. OR TWEET TO ME WITH CONSTRUCTIVE COMPLIMENTS I’LL PASS ALONG TO THE RIGHT PEOPLE. WITH THAT, JUMP INTO THE SHOW. WELCOME TO THE STAGE FROM ROBORACE, LUCAS DI GRASSI AND YOUR MODERATOR MATT BURNS.>>LUCAS, THANKS FOR JOINING US.>>GOOD MORNING.>>YOUR PICTURE ON THE SCREEN IS A LOT MORE HANDSOME THAN MY PICTURE.>>I GUESS THAT DEPENDS.>>THANKS ANTHONY. LUCAS, YOU’RE A RACE CAR DRIVER. WHY DO YOU WANT DRIVERLESS RACE CARS?>>THAT’S THE QUESTION THIS GETS ME EVERY TIME, TRYING TO KILL YOUR OWN SPORT?>>ARE YOU TRYING TO KILL YOUR OWN SPORT?>>THAT’S NOT TRUE. WHAT WE’RE DOING WITH ROBORACE WHICH THE AUTOMOTIVE INDUSTRY — WILL HAPPEN ANYWAY. AUTONOMOUS CARS WILL BE CHEAPER, GREENER, SAFER, AND ALL THE MONEY IN MOTORSPORT COMES FROM THE AUTOMOTIVE ENERGY. TRYING TO ANTICIPATE THE FUTURE AND KEEP MOTORSPORTS RELEVANT INTO THE FUTURE.>>CARS LIKE THE ONE YOU BROUGHT OVER HERE, RELEVANT FOR A LONG TIME TO COME. GREAT LOOKING CAR. TELL US ABOUT THAT.>>TOOK ME A LOT OF WORK TO PUT ON LUGGAGE COMPARTMENT.>>DID IT?>>ACTUALLY A REAL SIZE VERSION. RUNNING CAR. CAR HAS FOUR ELECTRIC MOTORS, 1,000 HORSEPOWER, 1,000 KILOS OVER 300 MILES PER HOUR, FULLY AUTONOMOUS. NOT REMOTE CONTROLLED. GPS, CAMERA, ULTRA SONIC, THAT BY UNDERSTANDING THE ROAD IN FRONT BY GPS OR COMPUTER VISION OR COMBINATION OF BOTH MAKE ALL THE DECISIONS AND DRIVE LIKE A RACE CAR DRIVER.>>THAT WILL BE AVAILABLE ON THE SHOW FLOOR SO EVERYBODY CAN SEE IT AFTER THE FIRST BREAK. YOU BROUGHT A VIDEO WITH YOU. >>THAT CAR EXACTLY, DID EVENT JULY THIS YEAR, SET UP FIRST EVER RECORD OF AUTONOMOUS HILL CLIMB IN ENGLAND. IT WAS THE FIRST EVER AUTONOMOUS CAR TO DO IT WITHOUT GPS. SO PURELY BASED ON COMPUTER VISION. AND PATH PLANNING.>>LET’S GO AHEAD AND ROLL THAT VIDEO.>>I’LL TALK YOU THROUGH.>>WHAT ARE WE LOOKING AT HERE?>>BASICALLY, THIS IS THE UPHILL TRACK. VERY FAMOUS MOTORSPORT EVENT. ONE MILE AND A HALF STRETCH THROUGH VERY COMPLEX SCENARIOS LIKE WALLS, GRASS AND BASICALLY YOU HAVE TO PUT CAR ON THE START LINE.>>SURE. >>PRESS PLAY OR LET’S SAY GO, AND CAR HAS TO DO ALL THE UPHILL BY ITSELF. IN TRADITIONAL MOTORSPORT THEY COMPETE AGAINST EACH OTHER. WE WERE FIRST TO DO IT WITH AUTONOMOUS VEHICLE. >>THAT’S RIGHT. YOU HAVE A SECOND CAR. LET’S ROLL THAT VIDEO. EXPLAIN WHAT WE’RE LOOKING AT. MAYBE.>>ROBORACE CONSISTS OF TWO VEHICLES. FULLY AUTONOMOUS CAR, THIS ONE, AND WE HAVE A CAR WHICH IS — DOES EXACTLY SAME AS THIS ONE BUT ALSO FITS A DRIVER INSIDE. SO WE CAN FIT THE SYSTEM WITH DRIVER INPUTS AND COMPARE STRAIGHTAWAY, A RACING DRIVER DRIVING IT OR CAR KRDRIVING BY ITSELF. THIS IS THE TEST WE DID A MONTH AGO IN SPAIN WITH THE PROTOTYPE BODY WORK. I WAS COMPARING MYSELF WITH THE CAR TO SEE HOW GOOD THE SYSTEM WAS. >>ARE YOU FASTER THAN THE CAR?>>THAT’S WHAT WE CALL THE — GOING TO CALL A SINGULARITY EVENT. WHEN AN AUTONOMOUS RACING CAR IS FASTER THAN ANY RACING DRIVER. SO FOR EXAMPLE, I RACED MY WHOLE CAREER WITH LEWIS HAMILTON AND SEBASTIAN VETTEL, RACED GO CARTS AND FORMULA 3, FORMULA 1 TOGETHER. THEY’RE THE BEST DRIVERS OF THE WORLD TODAY. WE WANT TO SEE A CAR WHICH IS QUICKER THAN THEM. >>SURE. >>WE STARTED THE YEAR, 20% SLOWER. NOW ABOUT 6% SLOWER. SO CAR IS CATCHING UP. AUTONOMOUS SYSTEM IS CATCHING UP. STILL A LOT OF WORK TO DO BUT WE THINK WHEN CAR REACHES A LEVEL BETTER THAN ANY HUMAN THIS WILL CREATE HUGE IMPACT IN TRUST ON PEOPLE USING AUTONOMOUS VEHICLES ON THE ROADS. THAT’S ONE OF THE PURPOSES OF ROBORACE.>>THAT’S INTERESTING. YOU’VE DONE ALL THESE RACES, YOU’RE A CHAMPION RACER. PEOPLE ARE FANS OF PEOPLE. WILL PEOPLE BE FANS OF AUTONOMOUS SYSTEMS?>>VERY INTERESTING QUESTION. WE DON’T HAVE THE ANSWER. ALTHOUGH EVEN ESPORTS ARE NOT SPORTS AND ARE HUGELY SUCCESSFUL. SO WHAT WE’RE TRYING TO DO WITH ROBORACE IS COMBINE HUMAN AND COMPUTER FOR THE FIRST TIME IN A SPORT. SO THIS CAR THAT YOU’RE SEEING NOW, THE IMAGE, THIS WILL BE THE RACERS WHICH START NEXT YEAR ALREADY. COMBINATION OF DRIVERS RACING FOR FIRST PART OF THE RACE, REAL DRIVERS, THEN IN THE PIT STOP, DRIVER JUMPS OUT OF THE CAR, THEN THE SECOND PART OF THE RACE, AUTONOMOUS SYSTEM TAKES OVER AND DRIVES THE CAR TO THE END. ALMOST LIKE A COMBINATION OF THE HUMAN AND MACHINE MERGING TOGETHER, LEARNING FROM EACH OTHER TO COMBINE A BEST RESULT. SO WE WANT TO CREATE THIS — NOT IMPRESSION BUT REALITY THAT HUMAN AND MACHINE ARE AT MOMENT WORKING TOGETHER FOR BETTER OUTCOME.>>HOW DO YOU ASSURE THE FANS THAT AUTONOMOUS SYSTEM IS NOT RIGGED OR PRESCRIPTED?>>THERE ARE MANY WAYS OF DOING IT, BUT EVEN IF WE WOULD LIKE TO PRE — PREPROGRAM ALREADY SET DATA FOR THE CAR TO BEHAVE, IT WILL NOT BE EFFICIENT, WILL NOT BE QUICK. WE ALREADY HAVE — EVEN IF YOU LEAVE IT OPEN, PEOPLE WILL NOT PREPROGRAM, WE HAVE TO BE A MACHINE LEARNING SYSTEM THAT THE CAR HAS TO ADOPT. FOR MOTORSPORT, ADOPTATION IS IMPORTANT, TO UNDERSTAND WHICH LINE IS BEST, WHAT IS THE BREAKING POINT. PREPROGRAMMED — PRETTY MUCH EVERY AUTONOMOUS RECORDS ON THE INTERNET ARE PREPROGRAMMED DATA. DRIVER DRIVING THE TRACK, COLLECT GPS POINTS, SET DATA, CAR REPEATS THAT PROGRAM. WE ARE BUILDING — WANT TO BUILD A PLATFORM THAT’S SELF-IMPROVING, USING NEURAL NETWORKS TO MAKE THE CAR BEHAVE AS A HUMAN, LEARNING FROM INPUTS AND DEVELOPING BETTER SOFTWARE AS IT COLLECTS MORE DATA.>>ONE THING THAT’S OBVIOUS, HUMAN LIFE WILL BE PUT AT LESS OF A RISK WITH THIS SYSTEM, RIGHT?>>YES.>>WITH THAT, YOU HAVE — PEOPLE ENJOY WATCHING STORIES, RIGHT? GOING TO BE LESS CRASHES INVOLVED. BUT PEOPLE REMEMBER WHEN THERE’S CRASHES. WHEN YOU CRASHED YOUR AUDI IN 2017 RACE — TELL US THAT STORY, WHAT HAPPENED IN THAT RACE?>>CRASHES ARE BIG PART OF MOTORSPORT. WE TRY TO AVOID IT, MAKE MOTORSPORT SAFER AND SAFER ALL THE TIME. BUT MOTORSPORT IS DANGEROUS. I HAD MANY CRASHES IN MY CAREER. I FLIPPED OVER, I GOT KNOCKED OUT IN A COUPLE OF CRASHES. I NEVER HURT MYSELF THANKFULLY, BUT I HAD A LOT OF CRASHES. BUT WITH AUTONOMOUS SYSTEMS, WE CAN — IF WE TAKE THE HUMAN FACTOR OUT, YOU CAN PUSH TECHNOLOGY FURTHER. IMAGINE YOU’RE DEVELOPING A TIRE THAT NEEDS TO GO 400 KILOMETERS AN HOUR, WITH PERSON INSIDE, TIRE BLOWN AWAY, MASSIVE CRASH THAT PUTS LIFE OF THE DRIVER AWAY. WITH AUTONOMOUS CARS, IF THERE IS A HUGE CRASH, OKAY, WILL BE A LOT OF MATERIAL DAMAGE, BUT NOT ANY LOSS OF LIFE. SO YOU CAN IMAGINE A DIFFERENT ENTERTAINMENT EXPERIENCE NEVER THOUGHT OF IN MOTORSPORT. IMAGINE EIGHT FIGURE RACE THAT THE CAR HAS TO COMMUNICATE AND CROSS EACH OTHER AT 300 KILOMETERS AN HOUR IN THE FUTURE WITHOUT THE NECESSITY OF PUTTING H H HUMAN LIVES IN DANGER. >>WHAT DATA DO YOU HAVE THAT SHOWS THAT PEOPLE WANT THAT ENTERTAINMENT?>>WE DON’T.>>HOW MUCH RUNWAY DO YOU HAVE BEFORE SPONSORS OR FUNDING PULLS OUT?>>MODEL IS BASED ON R&D, NOT ENTERTAINMENT. OF COURSE TRYING TO ENGAGE, GET DIFFERENT FORMS OF ENGAGEMENT. NEW GENERATION DON’T WANT TO WATCH. EVEN MOTORSPORT IS DECLINING. WANT TO REDIRECT. PLANNED AUGMENTED, VIRTUAL REALITY, MIXED REALITY OVERALL TO BE IMPLEMENTED IN THE RACE. WE SEE FOR EXAMPLE, WORKING TOWARDS FACT THAT PEOPLE IN THE STANDINGS, THEY CONTROL AUGMENTED REALITY OBJECTS THEY CAN THROW INTO THE TRACK THAT THE CAR NEEDS TO AVOID. ORBS OR EVEN A PERSON WALKING IN THE TRACK, CONTROLLING. AND CAR NEEDS TO RACE AND AT THE SAME TIME AVOID. WE THINK INTERACTION IS VERY IMPORTANT. PLUS CREATING OPEN SOURCE PLATFORM IN VIRTUAL REALITY, A VIRTUAL TWIN OF THE CAR THAT YOU CAN DOWNLOAD THE SOFTWARE FOR FREE, THE STACK. YOU CAN RUN THE RACE, DOWNLOAD THE TRACK, MODEL OF THE CAR AND RUN ON SIMULATED ENVIRONMENTS AND WINNERS OF THE RACES IN SIMULATED ENVIRONMENTS WILL BE GIVEN ACCESS TO THE CAR FOR FREE IN OPEN SOURCE PROGRAM. WANT TO CREATE OPEN SOURCE STACK. >>SURE. THAT’S INTERESTING. WHAT YOU SAID AT BEGINNING ABOUT THE CUSTOMERS IS INTERESTING. LOT OF THE PEOPLE HERE ARE START-UP FOUNDERS AND ACQUIRING CUSTOMERS IS A CHALLENGE. WHO IS YOUR CUSTOMER? AUTOMAKERS OR FANS?>>AT THIS STAGE, AUTOMAKERS. PRETTY MUCH WHOLE ECOSYSTEM, AUTONOMOUS CARS ARE LOT OF TECHNOLOGY SEGMENTS, ROBOTICS, DATA CONNECTIVITY, SENSORS, ELECTRIC MOTORS, BATTERIES, AUTOMOTIVE SYSTEM AND EVERYTHING ELSE. CUSTOMERS NOW ARE PROCESSOR COMPANIES LIKE NVIDIA, QUALCOMM, INTEL.>>PARTNERS?>>NVIDIA IS OUR PARTNER, USING INSIDE THE CAR RIGHT NOW. LOOKING FOR DIFFERENT PARTNERS. WANT DIFFERENT TEAMS WITH DIFFERENT TYPES OF HARDWARE IN TERMS OF PROCESSING POWER AND COMPETING TO SEE WHICH IS MOST EFFICIENT ONE. FOR COMPANIES LIKE SONY WITH COMPUTER VISION CAMERAS, AUTOMOTIVE SEGMENT LIKE TIRES, SMART TIRES, ELECTRIC MOTORS, BATTERIES, THERE IS A HUGE POTENTIAL. ACTUALLY BIGGER THAN MOTORSPORT, MUCH BIGGER THAN MOTORSPORT TO DEVELOP TECHNOLOGIES FOR AUTONOMOUS DRIVING SEGMENT.>>HOW MANY AUTOMAKERS HAVE YOU SIGNED UP AS PARTNERS?>>AT MOMENT, NONE. ALL AFRAID. >>WHY?>>AUTOMAKERS ARE AFRAID BECAUSE THE SOFTWARE IS NOT READY. >>BECAUSE SOFTWARE IS NOT READY OR DON’T HAVE MONEY TO INVEST IN RACING?>>MONEY IS NOT A PROBLEM. LOT OF INVESTMENT IN AUTONOMOUS DRIVING SEGMENT IS HUGE AND MADE SURE WE HAVE COMPREHENSIVE TOTAL COST OF OPERATIONS. WE’RE MUCH CHEAPER TO OPERATE THAN ANY AUTONOMOUS DEVELOPING SYSTEM THERE IS IN THE MARKET. BUT THEY ARE AFRAID AT FIRST THE — THEY HAVEN’T BEEN DEVELOPED TO REACH THE LEVEL OF RACING CARS. SO MOST OF THE AUTONOMOUS CAR INDUSTRY GOES UP TO 50, 60 KILOMETERS PER HOUR, MADE FOR DENSE HUMAN ENVIRONMENTS, WHERE AUTONOMOUS WILL GO FIRST. SO NOBODY’S USING THE HIGH PRECISION MODEL LIKE DRIFTING OR SLIDING. AND THESE SITUATIONS WILL BE VERY REAL WITH SNOW OR ICE ON THE TRACK. THERE IS A WHOLE DIFFERENT SEGMENT WE CAN DEVELOP FASTER THROUGH COMPETITION AND IN A CONTROLLED ENVIRONMENT. EVEN CRASHES WILL NEVER CAUSE — WE HOPE NEVER CAUSE A MORTALITY.>>LOT OF AUTOMAKERS AND TECH COMPANIES HAVE EXTENSIVE R&D FACILITIES FOR AUTONOMOUS VEHICLES. WHAT IS YOUR SALES PITCH TO THEM TO DEVELOP ON YOUR PLATFORM?>>FIRST TO COMPETE AGAINST EACH OTHER SO WE DEVELOP THE TECHNOLOGY FASTER. SECOND YOU CREATE EXPOSURE AND TRUST LIKE WE DISCUSSED IN BEGINNING. PEOPLE WATCHING THE CAR GOING 300 KILOMETERS PER HOUR IN PRECISE WAY, WILL GIVE TRUST TO JUMP IN AUTONOMOUS VEHICLE IN THE VEHICLE. EVEN WITH TECHNOLOGY READY WILL NOT JUMP IN WITH KIDS. HOPE TO DEVELOP THIS TRUST AND TECHNOLOGIES NOT DEVELOPED IN NORMAL COMMERCIAL ROADS WE CAN DEVELOP ON THE RACETRACKS. PRECISE CONTROLS, SENSORS, FAST ACTING SYSTEMS. FOR EXAMPLE ABS, TORQUE VECTORING, ALL THE CONTROLS ARE NOT BEING DEVELOPED FOR AUTONOMOUS VEHICLES. >>LOT OF COMPANIES ARE DOING AUTONOMOUS VEHICLES. YESTERDAY AMAZON ANNOUNCED A PROGRAM TO BUY INTO.>>YES.>>THEIR CAR IS $400, LOT OF THE SAME CAPABILITIES THAT YOU HAVE, NOT HIGH SPEEDS. >>OURS IS MORE EXPENSIVE, JUST OVER $1 MILLION.>>WHY $1 MILLION ON THERE WHEN $400 THROUGH AMAZON?>>CAN HAVE AMAZON NO PROBLEM. COMPLETELY DIFFERENT SEGMENT. NOT DEVELOPING SOFTWARE OURSELVES. WE’RE DEVELOPING THE BASE LAYER BECAUSE NOBODY HAS EVER DONE THAT. NEEDED TO CREATE THE CHICKEN SO THE CHICKEN COULD PUT AN EGG. NOBODY EVER DEVELOPED AUTONOMOUS RACING CAR. HAD TO DO EVERYTHING. DON’T WANT TO DEVELOP AND OWN THE IP OF THE SOFTWARE. WE WANT COMPANIES, ENGINEERS AND UNIVERSITIES TO JOIN US, USE OUR PLATFORM AS BASE DEVELOPMENT TOOL AND DEVELOP THEIR OWN IP FROM THERE ONWARDS. ALL INVESTING HUNDREDS OF MILLIONS OF DOLLARS CAN COME TO ROBORACE AND FURTHER DEVELOP THEIR SOFTWARE AND KEEP THEIR OWN IP. WE’RE AN EVENT PRODUCER FOR AUTONOMOUS, WE HAD TO DEVELOP THE TECHNOLOGY BUT LONG-TERM WANT THE TEAMS TO OWN THE TECHNOLOGY.>>LUCAS, YOU’RE REALLY PASSIONATE ABOUT THIS. BUT YOU’RE A RACE CAR DRIVER, WHAT MAKES YOU RIGHT TO RUN A TECH COMPANY?>>IT DOESN’T. >>SERIOUS QUESTION. HERE’S THE FOLLOW-UP, LOT OF THESE COMPANIES HAVE PASSIONATE FOUNDERS. WHEN DOES IT MAKE SENSE FOR COMPANY TO KEEP A PASSIONATE FOUNDER.>>SHOULD HAVE ASKED DENNIS. FOUNDER OF ROBORACES, NOT ME. HAD THE IDEA AND HAS THE CASH. HE’S FUNDING THE COMPANY HIMSELF. THROUGH A BIG FUND THAT INVESTED IN ROBORACE. HE’S THE GENIUS BEHIND IT. AND I WAS HIS ADVISER FOR A YEAR.>>SURE.>>DENNIS DECIDED TO GIVE ME THIS ROLE AS CEO TO FURTHER DEVELOP INTO THE AUTOMOTIVE INDUSTRY. I DON’T HAVE THE QUALITIES YET OF FULL RUN CEO. WE’RE A SMALL START-UP. I HAVE A LOT OF GOOD PEOPLE AROUND ME TO SUPPORT ME IN DECISIONS AND ON ANYTHING FROM FINANCIAL PLANNING, MARKETING, EVERYTHING. I THINK IMPORTANT IS — OF COURSE OF THE LONG-TERM VISION AND IDEA IS MINE, ESPECIALLY TO ADOPT A DRIVER, DEVELOP THIS WAY, CUT COSTS, THIS AND THAT. WITHOUT A TEAM AROUND ME, I WOULD NOT BE ABLE TO RUN THE COMPANY BY MYSELF. >>WHEN ARE YOU GOING TO RUP FOR PRESIDENCY OF THE FIA?>>I’M NOT IN POSITION YET. >>IF ROBORACE FAILS WILL THAT DIMINISH YOUR CHANCE TO BE THE PRESIDENT?>>TO BE HONEST I HAVEN’T THOUGHT ABOUT ROBORACE FAILING YET. IF IT FAILS, IT’S BEEN INCREDIBLE JOURNEY SO FAR, BUT I THINK AT THE MOMENT THE WAY THINGS ARE GOING FOR ROBORACE, CHANCE OF FAIL I THINK IS BELOW 20%, 15%. EVERY WEEK THAT GOES THROUGH, MORE PEOPLE ARE JOINING, INTERESTED, WANT TO SEE WHAT’S HAPPENING. CALLING US, BIG COMPANIES CALLING US TO DISCUSS HOW TO DO A PARTNERSHIP. IF ROBORACE DOES NOT SUCCEED, NOT BECAUSE IDEA IS WRONG BUT OUR MANAGEMENT OF THE COMPANY WAS NOT CORRECT OR TIMING WAS NOT CORRECT. >>SO YOUR FAULT?>>MY FAULT, OF COURSE.>>RIGHT.>>SO I TAKE THE RISKS. I THINK IT’S IMPORTANT WE SEE A FUTURE THAT’S COMMON IN OUR VISION, IN INDUSTRY VISION, THAT FUTURE IS AUTONOMOUS, ELECTRIC, THIS TECHNOLOGY, IF WE HELP ANY HOW THE INDUSTRY TO PUSH AUTONOMOUS CARS FORWARD, WE’RE GOING TO BE SAVING LIVES, MAKING TRANSPORT IN CITIES SAFER AND CHEAPER FOR EVERYONE. IT’S WORTH TRYING. CRAZY GUY BEHIND IT, DENNIS, PUTTING ALL HIS EFFORTS, IDEAS AND PASSION BEHIND THE COMPANY. GREAT TEAM. TRULY BELIEVE WE CAN REALLY HELP AUTOMOTIVE SEGMENT AND MOTORSPORT AT THE SAME TIME.>>WHEN IS YOUR FIRST RACE?>>AROUND APRIL/MAY, 2019, WITH THE CAR THAT YOU SAW WITH THE DRIVER INSIDE, DEFBOT 2.0. AND WE EXPECT TO BE CALLED SEASON ALPHA, A PRELIMINARY WAY OF PUTTING ROBORACE TO THE MARKET. START SMALL WITH CONTROLLED ENVIRONMENT AND RACES. EVERY YEAR A PLAN TO GROW UP TO 12 TEAMS IN THE FUTURE, HAVE A PROPER SERIES — WHAT I MEAN, SERIES LIKE WOULD LIKE OEMs, BIG COMPANIES PUTTING A LOT OF RESOURCES IN 2021.>> HOW LONG HAS DENNIS GIVEN YOU TO GET PARTNERS AND PROPER SERIES IN PLACE?>>DENNIS IS EVEN MORE CRAZY THAN I AM. TRUE VISIONARY. ROBORACE IS PART OF BIG PICTURE OF R&D. EVEN IF ROBORACE DOES NOT SUCCEED, ALL THE TECHNOLOGY WE DEVELOP TO CREATE THE PROGRAM WAS WORTH THE INVESTMENT. >>APPRECIATE YOU STICKING AROUND. YOU’LL DO QUESTION AND ANSWER SESSION AS WELL.>>LATER ON A Q&A. THANK YOU VERY MUCH.>>THANK YOU, GUYS.>>THANK YOU.>>>THANKS, GUYS, THAT WAS GREAT. AT 11:30, LUCAS WILL BE TAKING QUESTIONS FROM YOU GUYS, YOU CAN GO AHEAD AND CHECK THAT OUT. LET’S SEE, ALSO HAVE OTTER AI IN THE HOUSE. ANYBODY FAMILIAR? TECHCRUNCH STUFF. FANTASTIC. OTTER AI IS REALTIME TRANSCRIPTION SERVICE. OTTER.AI/DISRUPTBERLIN, TRANSCRIPTS OF THE PANELS HAPPENING IN REALTIME, SUPER EXCITING. WITH THAT WE’LL HOP INTO OUR NEXT PANEL, WELCOME TO THE STAGE FROM THE ReDI SCHOOL OF INTEGRATION, ANNE KJAER REICHERT. AND FROM NaTAKALLAM, ALINE SARA. AND YOUR MODERATOR MIKE BUTCHER.>>GOOD MORNING EVERYBODY. HOW YOU GETTING ON? OKAY? HELLO BERLIN! RIGHT. WE’RE GOING TO GET INTO THIS. OVER THE LAST FEW YEARS WE’RE ALL VERY FAMILIAR WITH WHAT HAS BEEN DESCRIBED AS REFUGEE CRISIS. I THINK OF IT MORE AS AN OPPORTUNITY TO REALLY ENGAGE AND CREATE FANTASTIC NEW STORIES AROUND INTEGRATION AND TECHNOLOGY. WE HAVE TWO FANTASTIC GUESTS HERE WHO ARE REALLY RIGHT IN THE EPICENTER OF THIS STORY. ALINE SARA FROM NaTAKALLAM, HEAR ABOUT THAT IN A MOMENT. TEACHING — ALLOWING REFUGEES TO WORK REMOTELY. AND ANNE KJAER REICHERT, WHO IS WITH ReDI SCHOOL OF INTEGRATION. IN BERLIN. LET’S HEAR A LITTLE BIT FIRST OF ALL, FOUNDING STORIES. I KNOW THAT YOU BOTH HAVE REALLY FASCINATING STORIES ABOUT HOW YOU CREATED WHAT YOU’RE WORKING ON. ANNE, LET’S HEAR YOURS FIRST. YOU WERE IN BERLIN IN CRUCIAL MOMENT IN 2015 I GUESS, WAS IT? WHEN THINGS REALLY STARTED TO KICK OFF WITH THE REFUGEE CRISIS IN EUROPE.>>SO TWO GENERATIONS AGO, MY FAMILY HAD TO LEAVE GERMANY BECAUSE THEY WERE PACIFISTS AND HAD A PRINTING BUSINESS, AND I GREW UP WITH A LEGACY OF HEARING THAT YOU HAVE TO STAND UP FOR WHAT YOU BELIEVE IN, VALUES THAT YOU HAVE. SO IN 2015 WHEN I SAW THERE WAS A LOT OF YOUNG PEOPLE COMING TO GERMANY, I HAD TO ASK MYSELF THE QUESTION, WHAT DO I DO NOW. AND I THOUGHT LET’S GATHER ALL THE STAKEHOLDERS, DID A BIG BRAINSTORMING, TOOK A CRITICAL LOOK AROUND THE ROOM AND REALIZED THAT THERE’S NO REFUGEES HERE, WHO ARE WE TO THINK WE KNOW WHAT THEY ACTUALLY NEED. WE STARTED GOING INTO REFUGEE CAMPS, HAVING CONVERSATION WITH THE PEOPLE WHO HAD ARRIVED. THAT’S HOW I MET MOHAMMED, A PROGRAMMER, TELLING ME HE WAS GOING TO THE LOCAL LIBRARY, TRYING TO TEACH HIMSELF HOW TO CODE. THAT FOR ME WAS WHEN THE PENNY DROPPED, WOW, CAN CREATE A WIN/WIN HERE. GERMAN INDUSTRY DESPERATELY NEEDS PROGRAMMERS. 55,000 AVAILABLE JOBS RIGHT NOW IN I.T. SECTOR. REFUGEES NEED JOBS AND OWN MONEY. VOILA.>>AND INITIAL IDEA WAS TO TEACH REFUGEES TO CODE, CORRECT?>>CORRECT.>>HOW HAS IT EVOLVED SINCE THEN?>>DID A NUMBER OF PILOT PROJECTS TO CHECK OUT DOES THIS IDEA ACTUALLY WORK. THEN STARTED IN FEBRUARY OF 2016. AFTER FOUNDING MARK ZUCKERBERG VISITED THE SCHOOL, THAT WAS NICE. HELPED US A LOT. NOW ALMOST THREE YEARS LATER WE’VE GROWN TO 500 STUDENTS, 250 VOLUNTEERS AND SOME AMAZING COMPANIES SUPPORTING US.>>AMAZING. DESERVES A ROUND OF APPLAUSE. FANTASTIC. ALINE, YOUR STORY IS EQUALLY FASCINATING. YOU WERE JOURNALIST IN ARAB SPRING IN LEBANON?>>IN BEIRUT. I’M LEBANESE, BORN AND RAISED IN NEW YORK WITH BACKGROUND MOSTLY IN HUMAN RIGHTS, CONFLICT RESOLUTION AND JOURNALISM. HEAR ABOUT THE REFUGEE CRISIS IN EUROPE BUT TRUTH IS 80% OF REFUGEES ARE LOCATED IN DEVELOPING COUNTRIES AND LEBANON HAS HIGHEST DENSITY IN THE WORLD. 1.5 MILLION IN GERMANY, THERE’S ABOUT THE SAME AMOUNT IN LEBANON AND COUNTRY OF 4 MILLION. 1 OF 4 IS A SYRIAN REFUGEE. AND REFUGEES THAT CROSSED BORDERS FROM CONFLICT ZONES ARE NOT GIVEN WORK PERMITS. REALLY DON’T HAVE OPPORTUNITY TO SEE A FUTURE AND RESTART THEIR LIVES. IDEA WITH NaTAKALLAM, MEANS WE SPEAK IN ARABIC, IS TO LEVERAGE THE FREELANCE ECONOMY AND DI DIGITAL NOMADDISM, IF CAN’T GET HIRED, WE HIRE AS TRANSLATORS. WE CONNECT YOU WITH A REFUGEE LANGUAGE PARTNER.>>THAT’S A CRUCIAL POINT. REFUGEES GENERALLY SPEAK GLOBALLY ARE NOT ALLOWED TO ACTUALLY WORK, ARE THEY? AND WHAT IS THE SITUATION IN GERMANY FOR REFUGEES? CAN THEY WORK?>>IT HAS CHANGED A LOT HERE. IN 2015 WHEN YOU ARRIVED AS ASYLUM SEEKER, NOT ALLOWED TO WORK BEFORE YOU WOULD BECOME A REFUGEE. THAT’S CHANGED NOW. IT’S AMAZING THAT GERMANY GOVERNMENT ACTUALLY LISTENED. NOW YOU CAN WORK AFTER JUST THREE MONTHS IF YOU’RE ABLE TO FIND THE JOB YOURSELF. TAKES A LITTLE BIT OF CONVINCING SOMETIMES AT JOB CENTERS BUT IT IS POSSIBLE. I THINK IT’S AMAZING THAT THE GERMAN GOVERNMENT MADE THIS WORK.>>HAVE YOU RECEIVED SOMETIMES THAT — THE WHOLE ISSUE HAS BEEN CONTROVERSIAL AND POLITICAL. HAVE YOU RECEIVED PUSHBACK ABOUT TEACHING REFUGEES TO CODE VERSUS UNEMPLOYED GERMAN CITIZENS?>>WE HAVE, THAT’S IMPORTANT AS WELL. KEEPS PUSHING US FORWARD. WE’RE STARTING TO OPEN UP, ALSO HAVE GERMANS IN THE COURSE. FOR US THAT’S SUPER POSITIVE BECAUSE INTEGRATION MEANS PEOPLE WHO ARE LOCALS MEETING FOREIGNERS, TALK AND WORK AND LEARN TO LIVE TOGETHER. YES, WE STARTED WITH ONLY TEACHING REFUGEES, BUT FOR NOW GET ALL THE GERMANS IN THERE ALSO NEEDING ACCESS TO EDUCATION AND BUILD THE TECH WORLD TOGETHER. >>INTEGRATING UNDERPRIVILEGED GERMANS NEEDING TECH SKILLS AND REFUGEES WHO WANT TO WORK. GREAT STORY. >>I HOPE SO. LET’S SEE.>>FANTASTIC. FROM TECHNOLOGY POINT OF VIEW, ALL FASCINATED ABOUT WHETHER OR NOT TECHNOLOGY CAN DO REAL THINGS. OBVIOUSLY GOING TO BE FASCINATING INDIVIDUAL STORIES, BUT ESPECIALLY ON TECHCRUNCH SIDE, ALWAYS TALKING ABOUT SCALING, HOW DO WE MAKE PRODUCTS AND SOLUTIONS SCALE GLOBALLY? NaTAKALLAM HAS MANAGED TO SCALE GLOBALLY BUT YOU ORIGINALLY CAME UP WITH MATCH MAKING PEOPLE WHO WANTED TO LEARN LANGUAGES WITH REFUGEES AND PUT THEM TOGETHER, LIKE A MARKETPLACE MODEL. NOW DEVELOPING A SCALEABLE PLATFORM TO MAKE THAT HAPPEN. ORIGINALLY USING SKYPE AND INTRODUCTIONS, NOW LOOKING AT REAL PLATFORM, RIGHT?>>OUR CORE TEAM IS MORE FROM HUMANITARIAN SECTOR, REALLY LEVERAGING TECHNOLOGY. TECHNOLOGY IS ENABLER IN OUR CONTEXT TO CONNECT HUMANS. STILL VERY HUMAN ABOUT WHAT WE DO. NOT ENTIRELY A MARKETPLACE, LOOK AT DIFFERENT ASPECTS TO MATCH PEOPLE.>>LOTS OF CURATION.>>BECAUSE OUR GOAL IS ABOUT IMPACT. WANT TO MAKE SURE IT’S NOT JUST THE SAME REFUGEE PEOPLE CLICK BECAUSE THEY GOT FIVE STARS AND KEEP GOING TO SAME ONE. WANT TO SPREAD THE OPPORTUNITY AND GOAL IS GIVE REFUGEES EQUIVALENT OF THE MONTHLY MINIMUM WAGE IN THEIR HOST COUNTRY. YES. WE WERE ADVISED BY PEOPLE IN TECH SECTOR TO DO IT MANUALLY FOR NOW, LEARN AND USE SKYPE AND GOOGLE FORMS, ET CETERA. BUT BETA VERSION OF THE PLATFORM WILL ENABLE US TO SCALE UP. STARTED WITH SYRIAN REFUGEES IN THE MIDDLE EAST AND NOW WORKING WITH PERSIAN AND IRANIAN, AFGHANS AND LAUNCHED SPANISH.>>VENEZUELA HAS ITS OWN CRISIS GOING ON AT MOMENT, WORTH REMEMBERING. GET TO THAT GLOBAL ISSUE IN A SECOND. CODE SCHOOLS HAVE BEEN AROUND A WHILE. YOU AIM SPECIFICALLY AT REFUGEES BUT HOW DO YOU MAKE WHAT YOU DO SCALE? DO YOU MOVE TO OTHER CITIES? HOW DO YOU SCALE UP?>>WE DECIDED TO HAVE NAIL IT BEFORE YOU SCALE IT STRATEGY IN BEGINNING. MAKE SURE WE HAVE RIGHT BUSINESS MODEL BEFORE WE SCALE SOMETHING UNSUSTAINABLE. PRETTY GOOD AT SAYING NO IN BEGINNING, LET’S WAIT, MAKE SURE WE DO IT RIGHT. THEN WE CAN SCALE IT. WE’RE AT POINT NOW RECEIVED SEVERAL QUALITY CERTIFICATIONS IN GERMANY, VERY IMPORTANT, AND NOW SCALED TO MUNICH, WANTED TO TEACH 50 STUDENTS FIRST YEAR, NOW CLOSE TO 250 STUDENTS. MODEL IS SCALEABLE IN 2019 IF ALL GOES WELL AND WE FIND THE RIGHT PARTNERS. ALSO START IN HAM BURG AS WELL, CREATE A SOCIAL FRANCHISE AND SEE IF IT CAN WORK AROUND THE WORLD, STARTING IN EUROPE PROBABLY. WE HAVE PEOPLE IN BRAZIL, SOUTH KOREA, AUSTRALIA WANTING TO START ReDI SCHOOLS THERE. I’M HOLDING OFF A LITTLE BIT, WANT TO DO IT RIGHT BUT SEE MORE IN THE FUTURE. >>WHEN YOU BOTH BUILT OUT YOUR ORGANIZATIONS, DO PEOPLE SAY IS THERE SOMETHING DIFFERENT ABOUT DEAL WITH REFUGEES VERSUS THE AVERAGE CITIZEN I SUPPOSE? TAILOR THINGS OR SAME BUT AIMED IN DIFFERENT WAY?>>FIRST OF ALL WORD REFUGEE IS LIMITING AND SOMETIMES DESTRUCTIVE. NOT MONOLITHIC PEOPLE, FROM ALL CLASSES AND BACKGROUNDS. EVEN WHEN WE TALK ABOUT IT WE TRY TO BE CAREFUL. I WOULD SAY THAT WE TREAT REFUGEES AS NORMAL INDIVIDUALS. THEY APPLY, SHARE THEIR CV, GO THROUGH INTERVIEW PROCESS. WHAT IS IMPORTANT TO REALIZE IS THEY’RE IN ABNORMAL CIRCUMSTANCES. NOT THEMSELVES THAT ARE DIFFERENT BUT CIRCUMSTANCES IN WHICH THEY’RE LIVING OR HAVE HAD TO DEAL WITH. WE TRY TO FOCUS ON THE REFUGEES WITH HE KNOW ARE CUT OFF FROM THE LABOR MARKET TO GIVE THEM THAT OPPORTUNITY. INTERESTING BALANCE. DON’T WANT TO STIGMATIZE THEM. BEING A REFUGEE IS NOT A PERMANENT STATUS, SOCIOECONOMIC STATUS, IT’S CIRCUMSTANCES YOU’RE DEALING WITH. IMPORTANT TO KEEP THAT IN MIND. BUT YES, VAST MAJORITY OF PEOPLE ON THE GO — AND TODAY WE’RE FACING LARGEST REFUGEE CRISIS SINCE WORLD WAR II, OVER 65 MILLION PEOPLE FORCED TO FLEE THEIR HOMES AND VAST MAJORITY ARE STRUGGLING, WAITING AT BORDER CROSSINGS AND HOST COUNTRIES TO GET RESETTLED. ONLY 1% OF THE GLOBAL REFUGEE POPULATION WILL GET RESETTLED TO COUNTRIES IN EUROPE, U.S. AND CANADA TO START LIVES LEGALLY. OTHERWISE STUCK AT BORDER COUNTRIES OR IMMEDIATELY FLEEING THE CONFLICT ZONE.>>HAVE YOU FOUND YOU HAVE TO TAILOR THINGS IN CERTAIN WAY OR JUST DEALING AS ALINE SAYS, WITH PEOPLE IN DIFFERENT CIRCUMSTANCES?>>WE APPLY POSITIVE PSYCHOLOGY. IF YOU TREAT PEOPLE LIKE VICTIMS THEY WILL START ACTING LIKE VICTIMS. IF YOU TREAT THEM AS TECH TALENT OR TREAT THEM AS TRANSFORMATION EXPERTS — TRANSFORMATION, HUGE WORD, YOUNG TALENTED PEOPLE BEEN THROUGH MAJOR DISRUPTION IN THEIR LIFE AND THEY HAVE TO REBUILD IT. SKILLS THEY’RE GETTING NOW IN EARLY 20s IS BUILDING INCREDIBLE RESILIENCE, I THINK NEXT FIVE YEARS IF THEY GET SUPPORT NECESSARY, WE’LL SEE THEM HOPEFULLY BEGINNING START-UP ENTREPRENEURS, GO INTO THE TECH INDUSTRY AND THINK OF COURSE THIS BUSINESS IS CHANGING, SO WHAT, WE’RE USED TO THIS, CAN HANDLE IT. THIS IS THE KIND OF TALENT THAT THE INDUSTRY NEEDS. THAT MAKES ME REALLY EXCITED AND WHEN I’M HAVING A SHIT DAY I LOOK AT STUDENTS AND SAY I CAN WORK A LITTLE BIT HARDER, I KNOW WHAT THEY’RE GOING THROUGH, STILL SMILING AND CURIOUS. SUPER EXCITING. >>WANT TO DIG INTO THIS. MENTIONED THAT WE HAVE TO FLIP THAT ARGUMENT ABOUT REFUGEES INTO TALKING ABOUT ENTREPRENEURS. FOR INSTANCE YOU WORKED WITH A GROUP THAT BECAME BUREAU CRAZY. TELL US ABOUT THAT.>>SUPER EXCITING START-UP THAT CAME OUT OF THE ONE OF THE FIRST CLASSES OF ReDI SCHOOL. HAD A GROUP OF THREE STUDENTS LOOKING AT WHAT ARE THE CHALLENGES FACING IN DAILY LIFE IN BERLIN, WANTED TO CREATE APPLICATION TO HELP. THEY REALIZED THAT GERMAN BUREAUCRACY IS INCREDIBLY HARD TO NAVIGATE WHEN YOU COME AS OUTSIDER. WANTED TO CREATE ALMOST AMAZON VERSION OF THE GERMAN BUREAUCRACY, YOU KNOW EXACTLY WHERE ARE MY PAPERS AT CERTAIN GIVEN POINT IN TIME. HOW LONG DO I HAVE TO WAIT BEFORE MY PAPERS ARE THROUGH? THEY HAVEN’T LAUNCHED YET, KEEP TELLING ME THEY’RE ABOUT TO LAUNCH BUT TURNS OUT GERMAN BUREAUCRACY IS MAY MORE BUREAUCRATIC THAN WE EVER THOUGHT. THERE’S A LOT TO CHANGE IN EGOVERNANCE IN GERMANY I WOULD SAY. BUT AMAZING, GROUP IS CONTACTED BY MANY GERMANS SAYING THAT APP YOU’RE DEVELOPING FOR REFUGEES, CAN YOU DO SOMETHING DIFFICULT, IF YOU’RE UNEMPLOYED IN GERMANY, IT’S NOT EASY EITHER. AND FOR US, COME FROM REFUGEE COMMUNITY BUT BUILDING SOLUTIONS HELPING EVERYONE AND MOVING NEEDLE FORWARD.>>WE TALK ABOUT PLATFORM-BASED BUSINESSES CREATING ENTREPRENEURS OFF THE BACK OF IT. SOME OF US ARE FAMILIAR WITH THE STORY HOW UBER CREATED SUCH A PLATFORM THAT SOME UBER DRIVERS BECAME LIKE MINI UBERS, ORGANIZING ON THE PLATFORM. HAVE YOU FOUND MORE CLIENTS STARTING TO BUILD THEIR OWN LANGUAGE LEARNING START-UPS WITH NaTAKALLAM?>>WE HAVE A FEW TUTORS WITH THEIR OWN SETUP FOR TEACHING. I WOULD SAY WHAT WE REALLY SEE IS NaTAKALLAM SERVING AS STEPPING STONE FOR THEM TO PURSUE OTHER OPPORTUNITIES AND CAREERS. WHICH IS CRITICAL. SEVERE RISK OF LOSING SUCH INCREDIBLE HUMAN CAPITAL DUE TO WHAT IS GOING ON IN THESE COUNTRIES AND YOUNG POPULATIONS WITH FUTURES AHEAD OF THEM. SYRIAN POPULATION WAS HIGHLY EDUCATED. PREWAR HAD THE HIGHEST LITERACY RATE –>>NOT A LOT OF PEOPLE KNOW ABOUT THAT.>>MEDIA AND POLITICAL LEADERS ARE NOT BEING BEST SPOKESPEOPLE FOR THE COMMUNITY. >>EDUCATED, LARGE MIDDLE-CLASS SOCIETY IN SYRIA AND WHOLE THING IMPLODES. >>AND CUT OFF AND DISCRIMINATED AGAINST. >>DOCTORS, LAWYERS, PROFESSIONALS.>>LIKE US. ONE OF THE STUDENTS WROTE TO US, AMAZED BECAUSE HE FOUND OUT SYRIAN LANGUAGE PARTNER LIKES PINK FLOYD, PART OF THE WORK IS CHANGING THE NARRATIVE AROUND WHO THE DISPLACED PEOPLE ARE.>>COME BACK TO SOMETHING YOU SAID EARLIER. SCALE OF THE PROBLEM. 65 MILLION REFUGEES AROUND THE PLANET, AND IT’S TACKED UP LAST FEW YEARS AND MENTIONED WHAT IS GOING ON IN VENEZUELA, IT’S NOT JUST MIDDLE EASTERN, ALSO IN AFRICA, SOUTH AMERICA, ASIA AS WELL OF COURSE. ZOOMING OUT, THINKING MORE BIG PICTURE, JUST HAD THE WHITE HOUSE REPORT THAT CAME OUT RECENTLY, WHITE HOUSE APPARENTLY DOING SOME RESEARCH FOR A CHANGE ABOUT CLIMATE. AND CLIMATE CHANGE. OBVIOUSLY CLEARLY IMPACTING THE WORLD. SEEN THE FOREST FIRES IN NORTHERN CALIFORNIA. THIS IS CREATING REFUGEES IN DEVELOPED COUNTRIES, LET ALONE EMERGING COUNTRIES. IS THERE GOING TO BECOME A POINT WHERE REFUGEE IS REALLY A MUCH MORE COMMON TERM THAN WE THINK? AND CLIMATE REFUGEE IS GOING TO BE A VERY, VERY COMMON ISSUE? SOME OF THE SOLUTIONS AREN’T JUST APPLIED TO WAR ZONES BUT PEOPLE ALL OVER THE WORLD. WHAT ARE SOME OF THE TECHNOLOGICAL WAYS WE CAN ADDRESS THESE ISSUES? YOU ARE OBVIOUSLY DOING IT RIGHT NOW.>>I THINK WE ARE IN A SCARY TIME IN HISTORY. I THINK YOU CAN READ ALL KINDS OF FIGURES, SOME ESTIMATING ANOTHER 200 MILLION REFUGEES BY — I FORGET, 2025 OR SOMETHING, DUE TO CLIMATE CHANGE. SOMETHING WE CAN’T IGNORE. WHAT TECHNOLOGY ENABLES AND START-UP MINDSET — HUMANITARIAN SECTOR IS BROKEN. NONPROFIT SECTOR, SO MANY TIME SPENT FUNDRAISING RATHER THAN YOUR MISSION. IN TECH SECTOR AND MIND SET. BARRED OF FREEDOM TO MOVE AND CHANGE YOUR PLANS BECAUSE OF THE FUNDING PLANS IN TRADITIONAL NONPROFIT SECTORS. I THINK THE START-UP MINDSET AND TECH SECRETOR HAS A LOT TO OFFE. SEVERITY IS SO MASSIVE WE NEED INNOVATION AND CHANGE IN MINDSETS AND TECHNOLOGY ENABLES SCALEABILITY.>>YOUR VIEW ON THIS?>>I’M VERY EXCITED THAT WE LAUNCHED COLLABORATION ABOUT UNDESBLOK, AND WE’RE EXCITED TO SEE HOW IT WORKS OUT. BLOCK CHAIN IS EXCITING. WHEN PEOPLE IN CLASSROOMS COME FROM DICTATORSHIPS AND HAVE TO REBUILD THEIR COUNTRIES, WHO WILL DO IT? WE’RE GOING TO SEE MORE CLIMATE REFUGEES, INTERNALLY DISPLACED PEOPLE IN THE FUTURE. WE HAVE TO THINK ABOUT ECONOMY AND HOW DO PEOPLE HAVE ACCESS TO GOODS AND IT’S CREATING SOLUTIONS. THAT’S EXCITING. OTHER ISSUE ABOUT IDENTITY, HOW DO YOU PROVE YOU’RE YOU AND YOU HAVE THE SKILLS WHEN YOU HAD TO LEAVE EVERYTHING BEHIND, UNIVERSITY BOMBED, CAN’T GET PAPERS OUT, HOW COULD YOU PROVE YOU CAN DO THINGS. BLOCK CHAIN IS ONE WAY WE CAN HELP WITH IDENTITY ISSUES.>>PHRASE IN TECH IS OFTEN SKATING TO WHERE THE PUCK’S GOING TO BE NEXT, ET CETERA. HOW DO WE PREP FOR THESE NEXT WAVES, NEXT MOMENTS? WHAT ARE THE CONVERSATIONS HAPPENING AT HIGHEST LEVELS ABOUT THIS KIND OF THING? I KNOW YOU DEAL A LOT WITH BIG INTERNATIONAL AGENCIES. WHAT DO THEY SEE HAPPENING IN THE FUTURE?>>I DO THINK THAT U.N. AND OTHER LARGE AGENCIES ARE LOOKING TO INNOVATION AND TO THE TECH SECTOR TO FORESEE AND PREVENT MORE DAMAGE. WE’RE IN MOMENT OF DAMAGE CONTROL, CROSSED THE THRESHOLD, CLIMATE CHANGE IS IRREVERSIBLE RIGHT NOW. IT’S NOT MY EXPERTISE BUT I BELIEVE PEOPLE ARE IN DAMAGE CONTROL STAGE. NEW TECHNOLOGIES HAVE A ROLE TO PLAY. AND TECHNOLOGY ISN’T THE SOLUTION ON ITS OWN. ALWAYS IMPORTANT TO BRING THE HUMAN ASPECT IN AS WELL.>>RIGHT. COCREATE. IT’S AWERE. >>EXACTLY. YES. ANNE, WHAT ARE THE THINGS YOU WOULD LIKE TO GET OUT OF THE TECHNOLOGY COMMUNITY? I KNOW YOU NEED PEOPLE TO HELP AND GET INVOLVED. STARTING WITH YOU, WHAT ARE THE THINGS THIS COMMUNITY COULD BRING TO WHAT YOU’RE DOING?>>REALLY RIGHT NOW WE HAVE TWO VERY CONCRETE ASKS. FROM JANUARY, LOOKING FOR 150 MENTORS. MEANING THAT YOU WOULD WORK FOR SIX MONTHS, ONLY MEETING ONCE PER MONTH WITH ONE OF OUR STUDENTS TO GIVE THEM A LITTLE BIT OF ADVICE HOW TO IMPROVE THEIR CAREER. SIX HOURS OVER SIX MONTHS IS NOT REALLY A LOT BUT CAN CHANGE A LIFE FOR A REFUGEE HERE IN GERMANY. REALLY DO REACH OUT. ALSO LOOKING FOR 150 INTERNSHIPS FOR STUDENTS FROM JUNE. IF YOU WOULD LIKE TO HAVE SOMEBODY IN YOUR COMPANY, DON’T HAVE TO PAY FOR THEM, IN THE BEGINNING THE GERMAN JOB CENTER WILL PAY. REACH OUT TO US. WE NEED MENTORS AND INTERNSHIPS.>>ANYBODY WANT TO GET INVOLVED? WHO WANTS TO GET INVOLVED, LET’S GET PEOPLE. TECHCRUNCH PEOPLE DOWN HERE. AND HOW ABOUT YOU, BUILDING A PLATFORM?>>WE’LL HAVE A BETA VERSION OF THAT. WITH TECHNOLOGY CHANGING SO RAPIDLY, WE’RE ALREADY READY TO CHANGE AND REFRESH IT. WE’RE LOOKING FOR TECH COMPANIES OR DEVELOPERS TO SUPPORT US. WE CONSIDER THAT OUR STRENGTH IS MORE THE HUMANITARIAN SIDE AND WE WANT TO COLLABORATE. IF YOU’RE LOOKING TO STUDY A LANGUAGE, CHECK US OUT. ALSO WE HAVE PROGRAMS IN UNIVERSITIES AND CLASSROOMS WHERE CHILDREN ARE SKYPING WITH REFUGEES AS WELL. WE THINK THAT’S REALLY IMPORTANT TO CHANGE THE NARRATIVE. WE CAN TALK ABOUT WANTING TO HELP REFUGEES BECAUSE WE ALREADY KNOW ABOUT IT. UNTIL WE CHANGE THE WIDER REPUTATION OF REFUGEES AND UNFORTUNATELY UNTIL WE COUNTER WHAT THE POLITICAL DISCOURSE IS ON REFUGEES, WILL BE HARD TO RALLY UP THE MASSES TO WORK ON THIS.>>FINALLY, VERY QUICKLY. WHAT IS EXAMPLE OF ONE OF THOSE LIFE CHANGING MOMENTS YOU’VE SEEN AS RESULT OF YOUR WORK?>>ONE OF MY STUDENTS, RAMI, MOST WELL-KNOWN FOR MEETING MARK ZUCKERBERG AND ANGELA MERKEL, FOR ME HE’S AMAZING TALENT. MET HIM, SHY GUY SITTING IN CORNER. NOW FULL-TIME JOB, STUDYING IN BERLIN AND RUNNING TWO E-COMMERCE SHOPS ONLINE, THINKING OF QUITTING UNIVERSITY TO BECOME E-COMMERCE ENTREPRENEUR. LET’S SEE ABOUT THAT. BUT SHOWS INCREDIBLE TALENT. ONLY 24. IMAGINE WHAT HE’LL DO IN TEN YEARS. >>14 SECONDS LEFT. QUICK STORY OF HEARTWARMING STORY, SESSION IN NEW YORK CITY MIDDLE SCHOOL WITH — I GUESS IT’S FOURTH GRADERS HAD A SESSION WITH ONE OF THEIR LANGUAGE PARTNERS, WHO IS REFUGEE IN IRAQ LIVING IN CAMP, WHO IS STUCK THERE. WE DON’T THINK SHE’LL EVER GET RESETTLED. END OF THE ONE-HOUR CLASSROOM SESSION DECIDED TO GIVE THE CLASSROOM GIFT RGS IN THE U.S. THEY DO THAT, TO REFUGEE CAUSE. CHANGING THE MINDSET AND RAISING AWARENESS AT YOUNG AGE THROUGH THE PROGRAM THAT ALSO GIVES INCOME TO REFUGEES. EXCITED ABOUT THAT. >>AMAZING. THANKS FOR SHARING YOUR STORIES AT TECHCRUNCH DISRUPT BERLIN. CHEERS.>>>THANK YOU. HOW IS EVERYONE FEELING? QUIET. YEAH? YOU GUYS DON’T FIND ME FUNNY. IS IT LIKE A LANGUAGE BARRIER OR JUST ME? WE’RE GETTING THERE, ALL RIGHT. THANK YOU, APPRECIATE THE PITY LAUGH. ALL RIGHT. LET’S GET MOVING ON TO OUR NEXT PANEL. NEXT GUEST IS A LITTLE BIT LARGER THAN LIFE HERE IN THE EUROPEAN TECH SCENE. WAS AT INDEX VENTURE PARTNERS, MASTER MIND BEHIND THE GLOBAL MEETUP CONCEPT OPEN COFFEE AND YC OF EUROPE, SEEDCAMP. GOING TO BRING HIM ON STAGE FOR A CHITCHAT. WELCOME SAUL KLEIN AND MODERATOR CONNIE LOYZOS.>>GOOD MORNING. AS JORDAN SAID, SAUL HAS BEEN MAKING AN OUTSIZED IMPACT ON THE EUROPEAN TECH SCENE FOR YEARS AS FOUNDER, OPERATOR, INVESTOR BEHIND SEEDCAMP, THE ACCELERATOR TURNED SEED STAGE, GLOBAL COFFEE, MEETUP CONCEPT. TODAY HOPING TO TALK TO YOU ABOUT A NUMBER OF TRENDS IMPACTING FOUNDERS HERE IN THE AUDIENCE. BREXIT OF COURSE, SOFTBANK’S MASSIVE $100 BILLION VISION FUND AND TENSIONS BETWEEN U.S. AND CHINA WHICH ALL SEEMS TO THINK COULD BENEFIT SOME OF YOU HERE, WHICH I THINK IS INTERESTING. BEFORE WE GET INTO THIS, SAUL, SINCE WE HAVE AUDIENCE OF FOUNDERS, THOUGHT WE COULD TALK ABOUT YOUR TRAJECTORY. BIGGEST MARK AS INVESTOR AT INDEX VENTURES WHERE YOU SPENT MANY YEARS, THEN DECIDED TO SPIN OUT AND DO THIS FUND WITH YOUR FATHER ROBIN. WHY LEAVE INDEX?>>THINK INDEX IS ONE OF THE GREAT TECH START-UPS TO COME OUT OF EUROPE IN LAST 20 YEARS. LOT OF PEOPLE DON’T THINK OF VENTURE AS BUSINESS BUT BEING JUST ABOUT THE INVESTING. I THINK THE BUSINESS THAT NEIL AND THE PARTNERSHIP AT INDEX HAS BUILT HAS BEEN ONE OF EUROPE’S GREAT ENTREPRENEURIAL SUCCESS STORIES. I HAD AMAZING TIME THERE AT INDEX FOR EIGHT YEARS. DURING THAT TIME WE RAISED THINK FOUR VENTURE FUNDS, THREE GROWTH FUNDS, ONE LIFE SCIENCE FUND, SOME OF THE AMAZING NEW PARTNERS, NEWER PARTNERS AT INDEX LIKE YAN HAMMER WHO LED THE SEED ROUND OF ROBIN HOOD AND THE SERIES A — JOINED DURING THAT TIME. MARTA, SERIES A OF DELIVERU JOINED DURING THAT TIME. I THINK WHAT I’VE OBSERVED, NOT JUST AT INDEX BUT WHEN I COFOUNDED SEEDCAMP, THE ENTREPRENEURIAL URGE TO CREATE BUSINESSES, IT’S AN AMAZING THING TO DO IN AN OPERATING SENSE. COFOUNDER OF LOVE FILM, THE NETFLIX OF EUROPE, PART OF THE SENIOR TEAM AT SKYPE BEFORE WE SOLD TO EBAY. THERE’S A REAL RUSH, BEING PART OF A FAST-GROWING BUSINESS. BUT I FIND THE BUSINESS OF VENTURE CAPITAL TO BE VERY ENTREPRENEURIAL AS WELL. WHEN I HAD A CHANCE TO WORK WITH MY DAD, YOU KNOW, WE’VE BEEN WORKING TOGETHER ON AND OFF AROUND 15 YEARS OR SO. HE WAS VENTURE PARTNER AT INDEX. WHEN WE HAD THE CHANCE TO DO A COUPLE OF THINGS, ONE, FOCUS ON SEED, WHICH I’M REALLY PASSIONATE ABOUT, THAT VERY EARLY STAGES OF BUSINESS FORMATION, TWO, TO DIRECT OUR FOCUS TO U.K. 85% OF LOCALGLOBE’S INVESTING IS IN THE U.K. CAN TELL YOU WHY I THINK IT’S ECONOMICALLY RATIONAL IF YOU LIKE. BUT CHANCE TO START AGAIN WITH BLANK PIECE OF PAPER, TAKE THE LEARNINGS FROM SEEDCAMP AND INDEX — AND I THINK AT INDEX WE WERE TRYING TO ALWAYS BE STUDENTS OF THE BEST VENTURE FUNDS IN THE WORLD, BENCHMARKS, SEQUOIAS OF THE WORLD. I THINK VENTURE IS A BUSINESS AND THERE’S A LOT STILL TO DO IN VENTURE. >>MENTIONED 85% OF INVESTMENTS ARE IN THE U.K. DID WANT TO ASK. INDEX IS AMAZING FUND. NINE IPOs IN LAST YEAR. >>12 MONTHS OR SO. >>SEEMS LIKE CENTER OF GRAVITY HAS MOVED A LITTLE BIT TO THE U.S. DO YOU THINK THAT’S TRUE?>>AT INDEX? NO, NOT AT ALL. I LEFT THREE YEARS AGO, CAN’T SPEAK FOR THE FIRM, NOT ON THE INSIDE TRACK. BUT IF YOU LOOK AT THE PARTNERSHIP, WHAT HAPPENED IS WHEN INDEX OPENED UP IN SAN FRANCISCO, NO POINT GOING TO SAN FRANCISCO AND DIPPING YOUR TOE IN THE WATER. SO INDEX LAUNCHED IN SAN FRANCISCO WITH TWO AMAZING PARTNERS, WITH DANNY RYMER, MIKE VOLPE, BOTH SPENT A LOT OF FORMATIVE YEARS IN VALLEY. AND INDEX OFFICE IN SAN FRANCISCO IS BIG OFFICE. DON’T FEEL LIKE INDEX IS A TOURIST THERE. IF YOU LOOK AT INVESTMENTS THAT INDEX HAS MADE IN THE U.S., SOME HAVE STARTED TO EXIT, SONOS, ARISTA, DROPBOX. HOLDS ITS OWN IN THE VALLEY. >>ABSOLUTELY.>>BUT AT THE SAME TIME IN EUROPE, INDEX FRANCHISE HAS CONTINUED TO GROW. I WOULD SAY WHEN INDEX LAUNCHED IN THE U.S. IT WAS A START-UP. NOW IT’S ESTABLISHED IN U.S. AND EUROPE AND THERE’S A REAL BALANCE. DANNY, MY OLD PARTNER, IS NOW BACK IN LONDON. >>OKAY. >>BUT LOOK AT LONDON TEAM, AMAZING PARTNERS THERE. NEIL THIS YEAR HAD FUNDING CIRCLE, IPO A YEAR OR TWO AGO, SUPERCELL WAS SOLD FOR $8 MILLION I THINK. FAR FETCHED, DELIVERU, I THINK PRETTY BALANCED. >>RIGHT, RIGHT, RIGHT. WOULD YOU SAY IT’S BEEN EASIER OR HARDER THAN YOU ANTICIPATED TO GET LOCALGLOBE OFF THE GROUND. SEEMS FROM THE OUTSIDE IT’S DOING QUITE WELL.>>LOCALGLOBE ON SOME LEVEL, THREE AND A BIT YEARS OLD. DAD AND I MOVED ON FROM INDEX IN MAY 2015. BUT LOCALGLOBE AS ANGEL AND SEED INVESTOR GOES BACK TO 2002. WE DID OUR FIRST INSTITUTIONAL FUND IN 2008. SO PROBABLY FROM THE OUTSIDE LOOKS VERY NEW, BUT FROM THE INSIDE WAS 15 YEARS IN THE MAKING. WHAT IS NEW IN THE LAST THREE YEARS OBVIOUSLY IS THAT IT’S NOW NOT ME AND MY DAD. IT’S INVESTMENT TEAM OF EIGHT. WHICH ME AND MY DAD ARE PART OF. IT’S AN OPERATIONS TEAM OF FOUR. IT’S A FULLY FLEDGED STANDALONE FUND, ISN’T JUST ABOUT THE TWO OF US, REALLY ABOUT THE TEAM AND THE ROLE THAT WE’RE TRYING TO PLAY IN THE U.K. MARKETPLACE.>>SURE, SURE. WHICH IS SEED STAGE START-UPS. WHEN YOU’RE DEALING WITH VERY NEW TEAMS AND FIRST-TIME FOUNDERS, NOT A LOT TO GO ON. VENTURE CAPITALISTS RELY ON SOCIAL PROOFS, INTRODUCED BY SOMEONE YOU RESPECT. WHAT ELSE? ARE YOU POREING OVER SOCIAL MEDIA FEEDS?>>INDEX WE PROBABLY SAT THROUGH 500 INVESTMENT COMMITTEES, BEEN FOUNDERS OURSELVES. SOMETHING I BELIEVE VERY STRONGLY IS INVESTORS DON’T MAKE BUSINESSES, FOUNDERS AND TEAMS MAKE BUSINESSES. BUT THE VALUE THAT INVESTORS CAN BRING IS A LOT OF PATTERN RECOGNITION. HAVING SEEN A LOT OF DIFFERENT THINGS. DOESN’T MEAN YOU’RE NOT WRONG MOST OF THE TIME, BUT IT DOES MEAN I THINK YOU START TO SEE AND DETECT CERTAIN ATTRIBUTES THAT YOU SAY THIS IS THE KIND OF FOUNDER, KIND OF TEAM THAT MAY BE CAPABLE OF BUILDING A BILLION-DOLLAR OR MULTIBILLION-DOLLAR BUSINESS. YOU’RE WRONG MOST OF THE TIME BUT CERTAIN THINGS YOU LOOK FOR. ONE OF THE THINGS WE TRY TO DO AS TEAM IS GET UNDER THE SKIN OF THE FOUNDER ATTRIBUTES AND TEAM ATTRIBUTES. AS WE GET TO KNOW THEM BETTER, TRY TO TEST AND PROBE THOSE AREAS. >>BEEN INVOLVED WITH SOME OF THE HOTTEST ONES HERE. DO YOU THINK THEY COULD HAVE BEEN FOUNDED IN U.S. BY AMERICAN FOUNDERS OR IS THERE A DIFFERENCE BETWEEN THE FOUNDERS HERE AND FOUNDERS –>>TWO EXAMPLES ARE IN FIN TECH SPACE. BEEN WITH REV OLUTE, KNOW THAT STORY LESS WELL. BUT FORMER COLLEAGUE OF MINE AT SKYPE WAS EMPLOYEE NUMBER ONE AT SKYPE. QUITE FRANKLY WOULD HAVE BACKED HIM TO CHOP LETTERS. BUT I THINK ONE OF THE THINGS THAT BOTH THOSE COMPANIES HAVE BEEN ABLE TO DO, YOU SEE IT WITH FUNDING CIRCLE, WITH ADYEN, A LOT OF EUROPEAN COMPANIES. FIN TECH IS AN AREA WHERE I THINK EUROPE IS A GLOBAL LEADER AND AREA WHERE LONDON AND U.K. IS A GLOBAL LEADER, PARTLY BECAUSE OF THE REGULATORY ENVIRONMENT IS A LOT MORE FORGIVING IN THE U.K. IN FACT THE REGULATOR, FCA, HAS A REGULATORY SANDBOX. IF YOU WANT TO BUILD A BLOCK CHAIN BUSINESS CAN DO IT IN PARTNERSHIP WITH THE REGULATOR IN THEIR SANDBOX, NOT THAT YOU CAN DO ANYWHERE ELSE. LONDON COMBINED WITH NEW YORK IS ONE OF THE MAJOR SECTORS AND FINANCIAL SERVICES INDUSTRY MAKES IT POSSIBLE FOR THESE TO BE BORN IN LONDON IN THE U.K. OR IN EUROPE. SECOND THING IS, YOU CAN BUILD STANDALONE BUSINESS WITH U.K. AS ONLY MARKET, SEEN COMPANIES LIKE RIGHT MOVE, MONEY SUPERMARKET BUILDING COMPANIES JUST IN THE U.K., MOST U.K. AND EUROPEAN COMPANIES HAVE TO THINK INTERNATIONAL FROM DAY ONE. TRANSFER WISE HAS TO, REVOLUTE DOES. THINGS THAT EUROPEAN COMPANIES HAVE BECAUSE THE U.S. MARKET IS SO BIG IN AND OF ITSELF. IN U.S. AND CHINA CAN GET ENORMOUS FOCUSING ON YOUR OWN MARKET. DON’T HAVE TO BE INTERNATIONAL FROM DAY ONE. >>I THINK THE THINKING EVERYWHERE IS YOU HAVE TO BE INTERNATIONAL FROM DAY ONE BUT YOU’RE HUGE PROPONENT OF THE U.K. BREXIT SEEMS INEVITABLE, LEAVING THE BLOC IN MARCH I BELIEVE?>>I DON’T KNOW WHAT — INEVITABLE CHANGES DAY TO DAY. THAT’S WHAT THE CALENDAR SAYS.>>WHO IS IMPACTED MOST BY THIS?>>I’M NOT A STUDENT OF POLITICS OR ECONOMICS, CAN JUST TALK FROM THE POINT OF VIEW OF THE TECH ECOSYSTEM AND DATA, THE BREXIT VOTE WAS 23rd OF JUNE, 2016, ETCHED IN MOST OF OUR MEMORIES, BIG SURPRISE ON A PERSONAL LEVEL TO MOST OF US. BUT THE REALITY IS WHEN THE VOTE HAPPENED, THE CLOCK STARTED. AND START-UPS NEED TO THINK ABOUT WHAT IT MEANS FOR THEM. ALL OF THE RESEARCH THAT’S BEEN DONE, AND WE DID A SURVEY OVER THE SUMMER WITH A LOT OF OTHER PEOPLE IN THE ECOSYSTEM, I THINK 9% OF COMPANIES SURVEYED WERE THINKING OF MOVING. LOT OF PEOPLE WEREN’T REALLY GOING TO CHANGE THEIR BEHAVIOR. >>DO YOU THINK THAT’S BECAUSE SO MUCH UNTCERTAINTY WHETHER ITS GOING TO HAPPEN?>>I DON’T THINK SO, BECAUSE WHEN YOU LOOK AT FUNDAMENTALS, U.K. IN 2016 HAD ABOUT $3.5 BILLION, $4 BILLION VENTURE CAPITAL, YEAR BREXIT HAPPENED. YEAR AFTER ALMOST DOUBLED OR MORE. 2018 LOOKS ON TRACK TO BE THE SAME. VENTURE IS 10 TO 12-YEAR BET. ANYONE INVESTING IN U.K. IN 2017, 2018, HAD HEARD OF BREXIT, PRICED THAT IN, NUMBER ONE. NUMBER TWO, 2.1 MILLION PEOPLE WORKING IN DIGITAL SECTOR IN THE U.K. SO ACCESS TO TALENT IS SIGNIFICANT. 40% OF EUROPE AND ISRAEL’S UNICORNS COME FROM THE U.K. THERE’S A REAL WEALTH OF SCALED UP SUCCESSFUL COMPANIES, ROLE MODELS THAT PEOPLE CAN RECRUIT FROM. AND FINALLY SEVEN OF TEN OF EUROPE’S TOP INVESTORS, INVESTORS ■BASED ON THE NUMBER F UNICORNS THEY’VE INVESTED IN OVER LAST TEN YEARS, ARE U.K. BASED. WHERE IS THE CAPSULE, WHERE ARE THE UNICORNS, THE TALENT, THE DEVELOPERS, OXFORD AND CAMBRIDGE, TWO OF THE FIVE BEST UNIVERSITIES IN THE WORLD, NOT U.K., THE WORLD. U.K. IS STRONG. >>BUT A LOT OF TALENT IS IT COMING FROM OUTSIDE THE U.K. AND PART OF BREXIT IS IMMIGRATION IS GOING TO BE SORT OF –>>I THINK THE PRIM ADMINISTER MINISTER SAID LAST WEEK THAT WAY THAT U.K. IS THINKING OF IMMIGRATION IN THE FUTURE IS HOW TO GET MORE HIGHLY SKILLED TALENT TO THE U.K., NOT LESS. FIRST COUNTRY IN THE G-8 TO HAVE ENTREPRENEUR’S VISA. WE HAVE A TIER ONE EXCEPTIONAL TALENT VISA. A PRODUCT MANAGER IN MOUNTAIN VIEW AND DON’T LIKE DONALD TRUMP RUNNING YOUR COUNTRY, GET ENTREPRENEURIAL VISA TO U.K. FOR TEN YEARS NOT TIED TO THE COMPANY AND SPOUSE WITH WORK ALONG WITH YOU. DON’T FEEL QUALIFIED TO COMMENT ON THE BROADER POLITICAL OR GEOPOLITICAL SITUATION, BUT WHEN IT COMES TO TECH, YOU KNOW, OBVIOUSLY BREXIT WILL HAVE AN IMPACT BUT THE FUNDAMENTALS ARE SO STRONG, ROLE THAT TECH PLAYS WITHIN THE U.K. ECONOMY IS SO FUNDAMENTAL AND WELL-SUPPORTED, NOT JUST BY THIS GOVERNMENT BUT ALL SHADES OF THE POLITICAL SPECTRUM, THAT I THINK — I’M VERY, VERY LONG ON THE U.K. OBVIOUSLY WHILE THE RELATIONSHIP WITH THE EU IS FUNDAMENTAL, THERE ARE TRADING PARTNERS NOT EU THAT ARE ALSO IMPORTANT. U.S. AND CHINA AND INDIA BEING JUST THREE.>>WE’RE ALMOST OUT OF TIME SUDDENLY. BUT I DID WANT TO ASK YOU ABOUT SOFTBANK. IN PART BECAUSE YOU’VE BENEFITTED IN PART BECAUSE IT’S ENTERED ON THE SCENE. EARLY INVESTOR IN IMPROBABLE WORLD WHICH RAISED FROM SOFTBANK LAST YEAR. TALKING BACKSTAGE, YOU WERE MENTIONING THAT YOU’VE GOT IMPROBABLE WORLDS, HUGE FUND AND DEEP MINE SOLD TO GOOGLE ABOUT THE SAME AMOUNT. JUST WONDERING WHAT DO YOU THINK OF THE BROADER TREND OF COMPANIES RAISING SO MUCH MORE MONEY AND NOT GOING PUBLIC? YOU’VE BEEN A BENEFICIARY AS WELL OF LOTS OF COMPANIES THAT HAVE HAD TO GO PUBLIC AND HAVEN’T RAISED BILLIONS TO DO THAT. WHAT ARE THE IMPLICATIONS HERE?>>DEPENDS ON WHAT YOU’RE TRYING TO DO AS BUSINESS. IF YOU’RE TRYING TO DO WHAT DEEP MIND WAS TRYING TO DO, CREATE A PLATFORM FOR ARTIFICIAL INTELLIGENCE, THAT’S NOT A TWO-YEAR KIND OF SMILING COHORTS JOB. THAT’S WE MAY NOT HAVE PRODUCT FOR YEARS. BUILD A PLATFORM THAT BEATS A SOUTH KOREAN GO PLAYER, WHAT VC IS GOING TO GIVE THAT HALF A BILLION DOLLARS FIVE YEARS AGO? INTERESTING ABOUT THE VISION FUND IS LAST TWO OR THREE YEARS, FOUNDERS TRYING TO BUILD TRANSFORMATIONAL, LONG-TERM, DEEP TECH BUSINESSES LIKE DEEP MIND IS/WAS, AND WHAT IMPROBABLE IS TRYING TO DO, ALL OF A SUDDEN HAVE ACCESS TO THAT KIND OF CAPITAL. I THINK WHAT IT MEANS IS, INSTEAD OF COMPANIES SELLING EARLY BECAUSE THEY DON’T HAVE THE FUEL TO SPEND $100 MILLION A YEAR THAT DEEP MIND WOULD HAVE HAD TO SPEND ON HOSTING AN INFRASTRUCTURE, WHICH GOOGLE HAS THAT IN SPADES, ALL OF A SUDDEN YOU CAN HAVE LONG-TERM, NO PUN INTENDED, VISIONARY INVESTORS WHO SAY OKAY, I SEE WHAT YOU’RE TRYING TO DO HERE, MAYBE IT’S GOING TO WORK, MAYBE NOT, BUT IF IT’S GOING TO WORK, COULD BE THE NEXT ORACLE AND I’M PREPARED TO BET BECAUSE COULD BE A $300 BILLION COMPANY. >>DID YOU SELL INTO THAT ROUND?>>NO.>>WONDERING IF THAT’S HAPPENING HERE.>>IT’S POSSIBLE. BUT I MET HERMAN AT SEED ROUND, CRAZY OR NOT, I BELIEVE HE’S TRYING TO BUILD A $300 BI BILLION — SOFTBANK AND HERE’S HOW MUCH THEY’RE GOING TO INVEST, HERE’S WHAT THE VALUATION IS GOING TO BE, I STILL THINK I CAN DO 100X FROM NOW, I BELIEVE HIM. >>THAT’S GREAT. TAKES A LOT OF FORTITUDE TO TURN DOWN SOMETHING LIKE THAT. WE’RE OUT OF TIME, REALLY LOVED SITTING WITH YOU. >>THANK YOU.>>THANK YOU GUYS. WE’RE GOING TO TAKE A QUICK BREAK. WHEN WE COME BACK, GET TO FIRST FLIGHT OF THE START-UP BATTLEFIELD. PLEASE BE BACK IN SEATS BY 10:45, SEE YOU SOON. .>>>ALL AROUND THE PROTEIN CHOICES YOU MAKE. YOU CAN AFFECT ALL THOSE POSITIVELY.>>THIS IS ALTERNATIVE MEAT, NOT CREATED TRADITIONAL WAY THAT MOST MEAT IS CREATED FROM WHAT MY MOM TOLD YOU. HOW IS BEYOND SAUSAGE CREATED?>>START WHERE ANIMAL PROTEIN STARTS. IN FIELD. SEPARATING PROTEIN, HEATING, COOLING, PRESSURE, RESTITCHES IN THE FORM OF MUSCLE.>>CREATING THE TEXTURE OF MEAT, PROCESS IS KIND OF INSANE. >>IT’S REALLY HARD.>>WHEN I EAT A BURGER, HOT DOG, STEAK, KNOW WHAT I’M GETTING.>>THAT’S THE ONE.>>WANT TO GET TO THE BOTTOM GOAL TO PERFECTLY REPLICATE ANIMAL PROTEIN WITH PLANTS. TEXTURE IS BIG ONE. YOU KNOW WHAT IT IS WHEN WE HAVE IT. CONSUMING IT 3 MILLION YEARS, PRIOR TO POINT WE WERE HOMO SAPIENS, RIGHT? TEXTURE HAS TO BE RIGHT. WE’RE CLOSE, NOT THERE YET. WE HAVE ROOM, WE HAVE TO GO BUT DON’T SEE MATERIAL OBSTACLE TO GETTING IT THERE.>>>SINCE WORKING, WHAT HAS CUSTOMER RESPONSE BEEN?>>SOLD OUT. PEOPLE HAVE BEEN WAITING FOR THIS PRODUCT TO COME OUT. >>QUICK TEST, ONE OF THE CREW MEMBERS, WORST EATER I’VE MET, CHEESE PIZZA, BLAND TASTE BUDS. JOE BEHIND THE CAMERA, REGULAR MEAT AND BEYOND MEAT. TWO MEATS HERE.>>PROBABLY THE MEAT ONE.>>NOW TRY THAT ONE.>>ALSO REALLY GOOD. FLAVOR IS SIMILAR ACTUALLY. TEXTURE IS A LITTLE BIT SOFTER. BUT DEFINITELY COMPARABLE.>>I AGREE WITH YOU. DOES FEEL A LITTLE BIT SOFTER, VEGGIE, BEYOND MEAT. BUT REALLY GOOD.>>I HATE MOST VEGAN/VEGETARIAN OPTIONS BUT –>>IT’S GOOD. I READ THAT YOU GUYS HAVE A BIG PLAYER AS INVESTOR, TYSON AS AN INVESTOR. HOW IS IT HAVING — ARE THEY CONSIDERED COMPETITOR TO YOU? HOW IS IT HAVING THEM AS INVESTOR?>>SOME OF THE MORE FORWARD THINKING ARE INVESTING IN THIS SPACE, WANT TO SERVE THE WORLD SUSTAINABLY. THEY SEE THIS AS PATH TO DOING THAT. BEEN AMAZING PARTNER. NOT POPULAR, GOT A LOT OF FLAK FROM SHAREHOLDERS AND WE DID BUT GOOD THING. >>IN LAB, HEALTH INDUSTRY SAYS AVOID PROCESSED FOODS, IS THIS CONSIDERED A PROCESSED FOOD TO AVOID?>>TERRIFIC QUESTION. WAY I THINK OF IT, TALE OF TWO PROCESSES. THERE IS A PROCESS STEP BUT NOT PROCESSED IN SAME WAY THAT PROCESSED MEAT IS. WE HAVE A UNIQUE CHALLENGE TO USE SCIENCE TO ACCOMPLISH THE GOAL WE WANT TO ACCOMPLISH. DO IT IN WAY LESS HARMFUL TO BODY. RED IN THE PRODUCT IS NOT A CRAZY CHEMICAL. IT’S BEET JUICE. IF WE NEED TO MAKE IT DARKER, DON’T FIND ARTIFICIAL COLORANT, USE PURPLE CARROT. CAREFUL TO USE THINGS WE UNDERSTAND.>>WHAT DID WE LEARN TODAY? TWO THINGS, JOE STILL HATES V VEGETABLES BUT ENJOYED BEYOND SAUSAGE. OVER $250 MILLION IN DISCLOSED INVESTMENTS, IT’S HUGE, LOT OF DIFFERENT COMPANIES WILL BE ENTERING THE SPACE TO CREATE ALTERNATIVE MEATS. ALTERNATIVE RIBEYE, EVERYBODY? HOPE YOU ENJOYED THAT. SEE YOU NEXT TIME. WHAT DID WE LEARN — INVESTMENT CATEGORY, ENJOY THE BEYOND SAUSAGE MORE?>>>I’M EXCITED FOR EXOSKELETONS TO BECOME UBIQUITOUS. THINK OF THE FIRST MOBILE PHONE, BRICK WITH CORD AND HEAVY BATTERY. TEN YEARS EXOSKELETONS ARE GOING TO BE ANALOGOUS TO THE SMARTPHONES TODAY. ONE OF THE THINGS THAT DISTINGUISHED EXO, WE KNOW HOW TO WRAP A ROBOT AROUND A HUMAN AND DO IT BETTER THAN ANYBODY ELSE. ORIGINALLY THE COMPANY WAS ABOUT HELPING SOLDIERS CARRY HEAVY WEIGHT IN THE FIELD. ONE OF THE FOUNDER’S BROTHERS WAS NAVY SEAL, INJURED HIMSELF –>>LADIES AND GENTLEMEN, PLEASE TAKE YOUR SEATS. THE PROGRAM IS ABOUT TO BEGIN.>>WITH THAT SAME TECHNOLOGY, DEVELOPED THE BUSINESS TO WHERE WE ARE TODAY WITH 300 PATENTS ISSUED AROUND THE WORLD.>>PHYSICAL THERAPIST, SPENT 20 YEARS IN SPINAL CORD INJURY REHAB. ONE OF THE MAIN BARRIERS IS STRENGTH DEFICIT PREVENTS THEM FROM GETTING STARTING WALKING OFTEN. THIS PROVIDES STRENGTH AND ABLE TO GET UPRIGHT EARLIER THAN IF THEY WAITED FOR NATURAL RECOVERY. >>EVERY ASSEMBLY WORKER SHOULD HAVE A VEST. PRONE TO INJURY LIFTING UP ARMS MILLION TIMES A YEAR. WHY SUBJECT THEM TO THAT INJURY WHEN DON’T NEED TO. ALL HAPPENING VERY FAST. MATERIALS BECOMING LIGHTER AND FASTER, GOING TO BENEFIT. ELECTRONICS AND BATTERY POWER BETTER, SENSORS SMALLER, CLOUD, MONITOR IN REALTIME, SCAN WHERE I’M WALKING, NOT HAVE ME TRIP ON THE GROUND. ALL GOING TO BENEFIT EXOSKELETONS AND MAKE THEM UBIQUITOUS.>>>SINCE THE INITIAL ANNOUNCEMENT IN 1999, BEEN 20 YEARS. LOT OF TECHNOLOGY HAS EVOLVED. ACTUATORS, ROBOTICS, AI ITSELF EVOLVED SO MUCH. ON TOP OF THAT, SPREAD OF WIRELESS CONNECTIVITY, CREATES ENVIRONMENT TO CONNECT TO THE INTERNET. ALL OF THAT, CAN CONNECT WITH OWNER, CREATE A BOND AND KEEP LEARNING AND DEVELOPING ITS OWN PERSONALITY. CAN RECOGNIZE UP TO 100 DIFFERENT FACES, BUT ALSO THE MORE YOU INTERACT WITH SOMEONE, REMEMBER THAT HE STORES THE INFORMATION, MORE FRIENDSHIP HE WILL FORM DEPENDING ON THE EVERYDAY INTERACTION, EACH DEVELOPS OWN PERSONALITY. I THINK COULD BE FUN COMPANION FOR ANYBODY LOOKING FOR COMPANIONSHIP. COULD BE SOMEBODY WHO REALLY IS FASCINATED BY AI AND ROBOTICS TOO. REALLY SHOWCASE PIECE FROM SONY, WHAT WE CAN DO WITH THE LATEST TECHNOLOGY. PRICING IS $28.99, FIRST LIMITED EDITION, SPECIFICALLY FOR THE U.S. MARKET. IVO, THREE-YEAR AI — FAVORITE TOYS, BALL, DOG TAG. AVAILABLE FOR SALE IN SEPTEMBER, TO SHIP AROUND HOLIDAY TIME FRAME.>>>LADIES AND GENTLEMEN, PLEASE TAKE YOUR SEATS, THE PROGRAM IS ABOUT TO BEGIN.>>>LADIES AND GENTLEMEN, PLEASE WELCOME TO THE STAGE, TECHCRUNCH SENIOR WRITER AND YOUR BATTLEFIELD HOST, ANTHONY HA.>>HELLO! WELCOME TO THE FIRST SESSION OF THE START-UP BATTLEFIELD. IF YOU’RE HERE AT DISRUPT, I ASSUME YOU MORE OR LESS KNOW WHAT START-UP BATTLEFIELD IS AND HOW IT WORKS. FOR THOSE THAT DON’T, DON’T WORRY. WHAT YOU’RE GOING TO SEE OVER THREE SESSIONS ARE 13 DIFFERENT START-UPS TAKING THE STAGE. CHOSEN FROM HUNDREDS OF DIFFERENT APPLICATIONS WE RECEIVED HERE AT TECHCRUNCH, PRESENTED SIX MINUTES EACH. FEW THINGS TO KNOW, COMPANIES PROBABLY LAUNCHING THE COMPANY ITSELF OR NEW PRODUCTS FOR THE VERY FIRST TIME. BEEN WRITING, REVISING, PRACTICING CONSTANTLY THE LAST FEW WEEKS. REALLY GOT IT DOWN. BUT GOING TO BE LIVE DEMOS. MEANS THAT ANYTHING COULD HAPPEN HERE ON STAGE. AND THEY’RE GOING TO BE REALLY, REALLY NERVOUS. ONE FAVOR THAT I ASK OF ALL OF YOU IS THAT YOU BE SUPPORTIVE. WHEN I SAY THAT, MEAN CHEER LOUDLY. DON’T HAVE TO DO IT NOW, DON’T GET EXHAUSTED YET BUT MAKE THE COMPANIES EXCITED TO BE HERE ON STAGE AND GLAD THEY CAME OUT. AFTER THE PRESENTATIONS, SIX MINUTES OF Q&A WITH THE EXPERT JUDGES, CAN ASK ANY QUESTIONS THEY WANT. CAN GET A LITTLE COMPATIVE ONCE IN A WHILE BUT NONE IS CLEARED WITH THE START-UPS, ANYTHING COULD HAPPEN. AFTER ALL THE START-UPS ARE PRESENTED, JUDGES HELP US CHOOSE THE FINALISTS TO COMPETE TOMORROW FOR $50,000 AND THE DISRUPT CUP. ALL YOU NEED TO KNOW. THAT MEANS IT’S TIME TO BRING OUT OUR JUDGES. FIRST WE HAVE BINDI CORIA, FOUNDER OF BINDI VENTURES, PASSIONATE CONNECTING DOTS BETWEEN INVESTORS, FOUNDERS AND GOVERNMENTS. NEXT, SAUL KLEIN, JUST SAW ON THE STAGE, FOUNDING PARTNER AT NEW LONDON SEED FUND, LOCALGLOBE. FORMERLY AT INDEX VENTURES. NEXT WE HAVE SIMON LEVINE, COFOUNDER AND PARTNER AT LONDON’S MOSAIC VENTURES. MADE EARLY BETS ON ETSY AND SQUARESPACE. ANTOINE NUSSBAUM, PARTNER AND MEMBER OF THE FOUNDING TEAM AT FELIX CAPITAL, ON THE BOARDS OF TRAVEL PERK, URBAN MASSAGE. LAST BUT NOT LEAST, ANDREAS VISCOM, GIVE IT UP FOR ALL OF OUR JUDGES. THAT MEANS IT IS TIME TO BRING OUT OUR FIRST START-UP, THAT IS WIRE FRAME, PRESENTING, JEREMIAH ALEXANDER AND SHY LACOMBIA.>>THE WEB HAS REVOLUTIONIZED EVERY ASPECT OF OUR LIVES. NOW WE CAN’T IMAGINE A WORLD WITHOUT IT. BUT WASN’T ALWAYS THIS WAY. DO YOU REMEMBER THE WEB BEFORE DESIGNERS? WHEN ONLY ENGINEERS COULD CREATE FOR IT? WASN’T UNTIL WE BUILT TOOLS TO EMPOWER DESIGN WE UNLOCKED ITS POTENTIAL AND UNLEASHED THE WAVE OF CREATIVITY THAT MAKES OUR LIVES SO RICH TODAY. HISTORY TENDS TO REPEAT ITSELF. AUGMENTED REALITY IS THE NEXT WAVE. ALMOST A BILLION AR DEVICES IN OUR POCKETS BUT LIKE THE EARLY WEB THEY LACK CONTENT. ONLY PEOPLE WITH DEEP TECHNICAL KNOWLEDGE CAN DESIGN FOR THEM. AT WIRE FRAME WE’RE BUILDING TOOLS TO EMPOWER DESIGN AND DELIVER THE AI FUTURE. BERLIN IS HOME TO SOME OF THE WORLD’S MOST ICONIC STREET ART. UNFORTUNATELY MUCH OF THIS IS LOST OVER TIME. IMAGINE A FUTURE WHERE AUGMENTED REALITY ALLOWS US TO SEE BEHIND THE CURRENT ARTWORK ON A WALL, LOOKING BACK IN TIME TO SEE HOW IT’S EVOLVED. WITH WIRE FRAME WE CAN START DESIGNING EXPERIENCES LIKE THIS TODAY. LET’S GO TO A LIVE DEMO. IN OUR WEB-BASED EDITOR, CLICK TO CREATE A NEW OBJECT. GOING TO CREATE A 2D PANEL TYPE, GIVE IT SUITABLE NAME. DRAG TO REPOSITION AND RESIZE AND CAN ALSO ADJUST PROPERTIES FROM OUR INSPECTOR. NEXT SELECT IMAGE TO REPRESENT THIS PANEL. FUN PART, BRING TO LIFE WITH INTERACTIONS. DRAG TO CREATE AREA ON THE BOTTOM RIGHT CORNER OF THE TIME LINE, SET UP INTERACTION SO WHEN USER FOCUSES GAZE ON THAT AREA, TRANSFORM THE PANEL INTO A NEW STATE THAT WE’RE GOING TO CALL ONE YEAR AGO. IN THAT NEW STATE WHAT WE’RE GOING TO DO IS CHANGE THAT ART WORK FOR AN OLDER GRAPHIC. LET’S HAVE ONE MORE INTERACTION, DRAG TO CREATE INTERACTIVE AREA ON THE BOTTOM LEFT CORNER OF THE TIME LINE. NOW WHEN THE USER FOCUSES GAZE ON THAT AREA, TRANSFORM THE IMAGE BACK TO ORIGINAL STATE. CREATED THIS IN WEB-BASED EDITOR. SEE HOW IT LOOKS IN AR. AT ANY POINT CAN LOAD UP MOBILE APP AND PREVIEW CREATIONS. SYNCHRONIZES WITH WEB APP IN REALTIME, AI KIT AND AI CORE FOR THE APPLICATION. BOTTOM RIGHT CORNER, TRANSFORMS TO SHOW US WHAT IT LOOKED LIKE ONE YEAR AGO. NOW IF WE FOCUS ON THE BOTTOM LEFT CORNER, GOING TO TRANSFORM IT BACK TO THE CURRENT ARTWORK ON THE WALL. LESS THAN TWO MINUTES, CREATED FIRST INTERACTIVE AR PROTOTYPE THAT ALLOWS US TO LOOK INTO THE PAST. WITH WIRE FRAME, AR DESIGN IS AS EASY AS WEB DESIGN. A RESPONSIVE WEB-BASED EDITOR ALLOWS YOU TO CREATE FROM 27 INCH DESKTOP AT WORK OR LAPTOP AT COFFEE SHOP. AND WHEN YOU’RE READY TO PREVIEW YOUR CREATIONS CAN DO SO IN REALTIME ON IOS OR ANDROID MOBILE APPS AND YOU CAN EXPERIENCE, LEARN FROM AND REMIX THE WORKS OF OTHERS. I STARTED MY CAREER BUILDING TOOLS FOR CREATORS AT ATARI. LEARNED TO BUILD PRODUCTS THAT PEOPLE LOVED, RUNNING MY OWN DIGITAL INDUSTRY, AND LEAD INSTRUCTOR I LEARNED TO SIMPLIFY COMPLEX TOPICS SO ANYONE COULD LEARN THEM. LET’S TALK ABOUT THE COMPETITION. DEVELOPER TOOLS LIKE UNITY, SAMARIAN, ARE POWERFUL, BUT REQUIRE COMPLEX CODING, MAKING UNAPPROACHABLE FOR DESIGNERS. CAMERA PLATFORMS LIKE SPARK AND LENS STUDIO ARE DEDICATED TO AR BUT ONLY BUILDING FOR THEIR CLOSED PLATFORMS. SKETCHBOX OR MOMENT ARE DESIGN-FOCUSED BUT REQUIRE VR HEADSETS AND THEN MOBILE APPS LIKE ARROW FROM ADOBE AND TORCH WHICH ARE MORE APPROACHABLE BUT DESIGNING EXCLUSIVELY ON A SMALL SCREEN IS JUST TOO CLUNKY. WIRE FRAME BY CONTRAST IS A POWERFUL TOOL DEDICATED TO AR DESIGN WITHOUT SPECIALIZED EQUIPMENT OR CLUNKY WORK FLOWS AND WE HAVE A UNIQUE COMMUNITY FOCUS AS WELL. IN LESS THAN TWO YEARS, AR IS GOING TO BE WORTH ALMOST $100 BILLION. IN FACT 88% OF MIDMARKET COMPANIES ARE ALREADY USING SOME FORM OF XR IN THEIR BUSINESS. OUR FOCUS ON THE MARKET GIVES US — $500 MILLION. IN A YEAR ATTRACTED ALSO 1,000 DESIGNERS WORLDWIDE, GIANTS LIKE COMCAST AND TOP EDUCATION INSTITUTIONS LIKE SCHOOL OF VISUAL ARTS IN NEW YORK. DELIVERED SOFTWARE AS A SERVICE WILL SOON ROLL OUT PER USER MONTHLY SOLUTIONS AND BESPOKE SOLUTIONS FOR ENTERPRISE. WE USED TO DESIGN FOR PAPER, THEN FOR SCREENS. NOW IT’S TIME TO DESIGN FOR REALITY. GO TO WIREFRAME.COM TO LEARN MORE. THANK YOU.>>ALL RIGHT JUDGES, WHO HAS QUESTIONS?>>SURELY THE SQUARESPACE INVESTOR MUST HAVE A QUESTION.>>THAT WASN’T A QUESTION. BUT I DO HAVE A QUESTION. CAN YOU TELL US KIND OF — YOU KNOW, ARCHETYPAL USE CASE. BUILT WITH THE EARLY CUSTOMERS THAT YOU HAVE. >>ABSOLUTELY. IT VARIES, ANYTHING FROM LOOKING AT HOW YOU MIGHT PROVIDE CUSTOMER SUPPORT USING AR THROUGH TO EDUCATION TOOLS. SO WE HAD A USER LOOKING AT MAKING AN INTERACTIVE EDUCATIONAL STORY BOOK FOR THEIR CHILDREN. QUITE VARIED, WHAT THEY HAVE IN COMMON IS EXPERIMENTAL. WHERE WE’RE FOCUSING THE PLATFORM, ABOUT IDEATION AS ABOUT PROTOTYPING, PLACE WHERE KILLER APPS ARE CONCEIVED. >>QUESTION AROUND GO TO MARKET AND AUDIENCE YOU’RE TARGETING, CAN YOU TELL ME A LITTLE BIT ABOUT THE GO THE MARKET? MENTIONED 1,000 DESIGNERS, WHAT HAVE YOU DONE TO ACQUIRE THEM, HOW ARE YOU SCALING THAT? ARE YOU ACQUIRING IN AGENCIES OR BRANDS?>>NOT DONE ANYTHING SO FAR. NO MARKETING. WROTE A COUPLE OF BLOG POSTS THAT’S ATTRACTED A LOT OF ATTENTION. WE’LL CONTINUE TO DO THAT. FINDING CONTENT MARKETING IS WORKING WELL. NUMBER OF DESIGNERS GENUINELY INTERESTED IN WHAT AR HAS TO OFFER AND LOOKING FOR EASY WAYS TO GET INTO THIS. THAT’S PROVING SUCCESSFUL. ALSO LOOKING AT EDUCATIONAL PARTNERSHIPS, WHERE WE DELIVER WORKSHOPS. ONLY COMPANY DELIVERING AR PROTOTYPING WORKSHOP AT SOUTH BY SOUTHWEST.>>YOU MENTIONED UNITY AND POTENTIAL COMPETITORS, YOU ALLUDED TO IT A LITTLE BIT. BUT IF YOU DOUBLE CLICK ON THAT, WHAT WOULD YOU SAY IS YOUR COMPETITIVE ADVANTAGE THERE? YOU SAID PROTOTYPING, BUT AT SOME POINT WOULD I HAVE TO INTEGRATE WITH SOMEBODY LIKE THAT? OR IS YOUR SOLUTION STANDALONE?>>WE FOCUSED IN ON PROTOTYPING. OUR APP IS BUILT IN UNITY, EASY FOR US TO PLAN, DEVELOP A HAND OVER PROCESS, WORKING ON AT MOMENT. WOULD INTEGRATE WELL INTO THE DEVELOPER WORK FLOW. SOMETHING WE’RE LOOKING TO SUPPORT IN SUPPORT IN THE FUTURE. >>YOU MENTIONED VERY BRIEFLY IN YOUR SPEECH THAT YOU HAD A VERY SPECIFIC PLAY-AROUND COMMUNITY. CAN YOU ELABORATE ON THIS?>>YES, ABSOLUTELY. SO ONE OF THE THINGS WE LEARNT EARLY ON DURING OUR BETA TESTING IS ACTUALLY A LOT OF PEOPLE STILL DON’T KNOW WHAT’S POSSIBLE IN AR. ONE OF THE MOST COMMON QUESTIONS I GOT ASKED IS, WHAT CAN I BUILD IN WIRE FRAME? WHAT CAN WE DO WITH AR? THE WAY WE THERAPIST THAT IS, ACTUALLY, THAT IS PROBLEM THAT WE NEED TO SOLVE TOGETHER. IT’S A CO-DESIGN PROBLEM. WE TOOK INSPIRATION FROM PLATFORMS LIKE GITHUB WHERE DEVELOPERS CAN SHARE THEIR SOURCE CODE, OTHERS CAN USE THAT AS A STARTING POINT FOR THEIR OWN CREATIONS, AND THAT’S SOMETHING WE’VE INTEGRATED INTO WIRE FRAME. >>WAS I CORRECT IN SAYING THAT YOU GUYS ARE BASED IN SINGAPORE? SO MY QUESTION IS, LIKE, HOW BIG’S THE TEAM, WHERE ARE YOU BASED, HOW MUCH CAPITAL HAVE YOU RAISED SO FAR, AND WHAT DO YOU THINK THE NEXT SORT OF CAPSULE RACE LOOKS LIKE FOR YOU GUYS?>>WE’RE AN INCREDIBLY LEAN TEAM. INITIALLY IT WAS JUST ME, SO I’M BASED IN SINGAPORE. I STARTED WORKING ON THIS IN OCTOBER LAST YEAR. LOCKED MYSELF AWAY AND WORKED ON IT INTENSELY. BUILT THE FIRST VERSION, THEN SHY JOINED ME IN JULY. SO WE’RE ACTUALLY REMOTE AT THE MOMENT. I’M BASED IN SINGAPORE, SHY IS OVER IN THE UK, THE COMPANY IS REGISTERED IN THE U.S. WE JUST STARTED FROM A TECH ACCELERATOR PROGRAM. AND THAT’S THE ONLY OUTSIDE INVESTMENT THAT WE’VE HAD TO DATE.>>AND WHERE ARE YOU THINKING OF BUILDING THE BUSINESS?>>SO I THINK WE’RE FLEXIBLE IN THAT. WE BELIEVE THAT REMOTE HAS BEEN WORKING QUITE WELL. WE’VE WORKED TOGETHER IN THE PAST. WE’VE KNOWN EACH OTHER SIX YEARS AND WORKED TOGETHER ON A NUMBER OF PROJECTS. WE HAVE A STRONG NETWORK OF DEVELOPERS AROUND THE WORLD WE’VE WORKED WITH. IT WOULD BE VERY EASY FOR US TO EXPAND AND BUILD A STRONG TEAM THAT WAS ENTIRELY REMOTE. BUT IF WE NEED TO FOCUS IN ON A LOCATION, THEN WE WILL.>>WHO IS YOUR NEXT STRATEGIC HIRE? BESIDES THE TWO OF YOU? WHO’S NEXT TO FILL THAT GAP IN THE TEAM?>>SO EXCLUDING THE TECHNICAL HIRES, OUR NEXT FOCUS WOULD BE ON LEARNING-FOCUSED CONTENT MANAGER. SO THAT’S AN AREA WE’RE FINDING IS GETTING A LOT OF TRACTION AND WE REALLY WANT TO EXPAND THAT OFFERING. I MENTIONED EARLIER HOW DELIVERING WORKSHOPS IS PROVING TO BE ONE OF OUR REALLY INTERESTING ROUTES TO MARKET. SO HAVING SOMEONE WHO FOCUSES ON LEARNING AND FOCUSES ON CONTENT.>>IS THERE A PARTICULAR AR PLATFORM THAT YOU’RE TARGETING OR MORE SUITED TO? THERE ARE A NUMBER OF COMPETING ONES EMERGING. AND NOT ALL OF THEM ARE SORT OF OPEN OR THE EASIEST TO BUILD FOR.>>ANSWER QUICKLY.>>OKAY. SO WE’RE FOCUSED ON MOBILE AR AT THIS POINT. SO LEVERAGING APPLE’S AR STD AND GOOGLE’S AR CORE SDK. WE EXPECT THERE’S GOING TO BE HUGE INNOVATION IN MOBILE AR THE NEXT COUPLE OF YEARS AND WE’RE LOOKING TO GROW WITH THAT MARKET. >>ALL RIGHT, ONE MORE ROUND OF APPLAUSE FOR WIRE FRAME! LET’S BRING OUT OUR NEXT STARTUP, CALYPSO. PRESENTING ARE JERG I DON’TS DEPASTAS AND GIORGIOS KALERIS. HELLO. I’M GIORGIOS AND I LOVE QUIZZES. WHAT DO FACEBOOK, WEAK FACTION, AND NEWBERG ALL HAVE IN COMMON? APART FROM CONTAINING EVEN NUMBER OF VOWELS, IT’S THE RECENT DATA BREACHES. MORE THAN 150 MILLION RECORDS WERE BREACHED BY EQUIFAX. AND THESE ARE RECORDS OF PEOPLE LIKE YOU AND ME. MORE THAN 60% OF COMPANIES HAVE ALREADY GOT BREACHED. SO IT’S NO LONGER A QUESTION AS TO WHETHER A COMPANY WILL BE BREACHED, BUT RATHER, WHAT THE IMPACT AND THE COST OF THIS BREACH WILL BE. ENCRYPTION IS THE MOST EFFICIENT MEASURE, TECHNICAL MEASURE, IN ORDER TO MITIGATE THIS COST. AND THAT’S ALL STIPULATED BY A LOT OF ORGANIZATIONS AND BY REGULATION, LIKE GDPR. AND THAT’S WHY WE STARTED CALYPSO. CALYPSO IS THE FIRST NEVER DECRYPTED CLOUD DATABASE SYSTEM. THE DATA STORAGE REMAINS ENCRYPTED. ADDRESSED IN TRANSIT AND IN MEMORY AT THE DATABASE LEVEL. WHILE THE DATA IS ENCRYPTED, SOMEONE CAN RUN QUERIES WITHOUT DECRYPTING THEM, FETCH THEM BACK TO THE APPLICATION, AND ONLY THERE THE DATA GETS DECRYPTED. THE KEY REMAINS INVISIBLE TO THE STORAGE SERVER, AND AT THE SAME TIME, NO APP CHANGES ARE REQUIRED. SO IMAGINE THAT YOU HAVE YOUR GOLD MINE OF DATA STORED IN A CAPE. ALIBABA FINDS YOUR SECRET PHRASE. SESAME OPEN, HE SAYS. WALKS IN. BUT WHAT HE FINDS IS JUST CODE HIDING THIS WEALTH OF DATA, BECAUSE CALYPSO CONCEALS THE DATA FROM ANY DATABASE ATTACK. SWITCH TO DEMO. HERE WE’RE GOING TO SEE A USE CASE WE HAVE BEEN RUNNING TOGETHER WITH ONE OF THE TOP U.S. BANKS. THEY’RE PULLING TOGETHER IOT DATA IN ORDER TO RUN ANALYTICS ON THE CLOUD. WHATEVER YOU SEE ON YOUR SCREEN IS IOT DATA FOR PARTICULAR INCIDENTS THAT CONTAIN SENSITIVE TRANSACTION AND CUSTOMER INFORMATION. ALL OF THEM PRELOADED ON AWS. LET’S LOOK NOW HOW ANYONE WITH UNAUTHORIZED USER WITH ROUTE ACCESS TO THE DATABASE STORAGE WOULD VIEW THE DATA, RIGHT, INTO THE DATA STORAGE. EVEN IF THE DATA HAS ADDRESSED ENCRYPTION. THIS IS WHAT YOU CAN SEE. SO EFFECTIVELY, THE DATA APPEARS IN PLAY. NOW WHAT WE’RE GOING TO SEE IS WHAT HAPPENS WITH CALYPSO. OUR DIAMONDBACKER INTERCEPTS THE DATA STREAM AND EPCRYPTS THE DATA BEFORE THE STORAGE. SO ANY UNAUTHORIZED USER WITH ACCESS TO THIS PARTICULAR SERVER WOULD SEE THIS. WHICH IS ACTUALLY RUBBISH, RIGHT? SO ANYONE UNAUTHORIZED, LIKE CLOUD PROVIDER, ANY HACKER, EVEN SYSTEM ADMIN, CANNOT VIEW THE DATA. THE INTERESTING BIT HERE, THOUGH, IS THAT WHILE THE DATA IS ENCRYPTED, SOMEONE COULD RUN SQL QUERIES ON TOP OF THEM. SO IN THIS SCENARIO, A DATA ANALYST WANTS TO FIGURE WHICH CATEGORY HAS THE HIGHEST SPEND IN TERMS OF FRAUDULENT ACTIVITY. SO WHAT YOU CAN SEE HERE, FOR EXAMPLE, IS THAT TRAVEL IS THIS CATEGORY. AND MOST IMPORTANTLY, BECAUSE WE FIRED THIS NEW YEARRY, THE DATA WAS DYNAMICALLY REENCRYPTED. SO WE’RE GOING TO GO BACK. THIS IS HOW THE RECORD LOOKED LIKE. SO YOU CAN SEE THE FIRST THREE DIGITS OF RECORD 0SK5. SO LET’S REFRESH. AFTER THE QUERY, IT CHANGED. SO YOU CAN SEE HOW OUR SOLUTION ACTUALLY REENCRYPTS THE DATA. SWITCH BACK TO THE PRESENTATION, PLEASE. THE QUESTION IS HOW DO WE DO IT? AT THE LOWER LEVEL WE USE A.S. FOR INDIVIDUAL RECORD ENCRYPTION. AND ON TOP OF THAT WE COMBINE CRYPTO GRAPHICIC METHOD AND DIFFERENTIAL PRIVACY IN ORDER TO ENSURE THE SECURE AND OPTIMIZED WAY OF INDEXING THIS INCREPTED RECORD. THIS IS A TECHNOLOGY, A PROPRIETARY TECHNOLOGY DEVELOPED BY MY COFOUNDER, YET ANOTHER GIORGIOS. THIS IS THE MOST COMMON NAME IN GREECE. LUCKILY ENOUGH IT WASN’T JUST OUR NAMES THAT BROUGHT US TOGETHER. MY BACKGROUND IS FROM BARCLAYS. I USED TO HEAD THE REALTIME DATA ANALYTICS PORTFOLIO FOR THE BANK, TRIED TO MOVE THE DATA TO THE CLOUD, QUICKLY REALIZED OUR COMPLIANCE COULDN’T GET HAPPY ABOUT EXISTING SOLUTIONS. IF YOU LOOK, FOR EXAMPLE ON ONE END, ORACLE’S TRANSPARENT DATA ENCRYPTION. HIGH USE ABILITY BUT REVEALING A LOT OF INFORMATION, SO LOW SECURITY. AND AT THE OTHER END WE HAVE COMPETITORS LIKE MICROSOFT’S ALWAYS ENCRYPTED OR UNVEIL. VERY ROBUST SECURITY. BUT THEN THEY CANNOT SUPPORT A LOT OF QUERIES AND THEY ARE SUPER SLOW. SO WE ARE THE FIRST ONES THAT COMBINED THOUGH THE TWO AT SCALE. WE’RE TALKING ABOUT A HUGE MARKET. 1.6 BILLION BY 2022. AND OUR CURRENT MODEL IS BASED ON B2B DIRECT ENGAGEMENTS REWIDE RECEIVER HAVE ALREADY RAISED OUR PRESIT. WE’VE ANNOUNCED A PILOT WITH BANK OF GREECE IN 2019 AND EVALUATION WITH EXPERT FIRM. THOUSANDS OF YEARS AGO, THERE WAS CALYPSO. A GREEK GODDESS WHOSE NAME MEANT “SHE WHO KEEPS THINGS SECRET.” TODAY WE ARE HERE IN ORDER TO PASS HER SUPERPOWERS ON TO YOU. IN ORDER TO HELP YOU DIFFERENTIATE YOUR PRODUCTS BASED ON TRUE SECURITY. THANK YOU VERY MUCH.>>ALL RIGHT, JUDGES?>>SORRY, JUST A QUESTION ON DEPLOYMENT. SO HOW EASY IS YOUR TECHNOLOGY TO DEPLOY? OBVIOUSLY IT’S VERY EARLY STAGE. YOU HAVEN’T IRONED OUT ALL OF THE ISSUES. BUT WHEN YOU THINK ABOUT DEPLOYMENT, HOW DO CUSTOMERS THINK ABOUT IT? HOW COMPLEX IS IT? ON-PREMISE VERSUS I GUESS PRIVATE CLOUDS? CAN YOU TALK THROUGH THAT A LITTLE BIT?>>GREAT QUESTION. DEPLOYMENT HAS BEEN SHOWN AS ONE OF THE TOP CONCERNS OF CUSTOMERS WE’RE TALKING TO. SO WE HAVE DEVELOPED A DOCKER APPROACH. SO THAT IT’S VERY EASY TO DRAG AND DROP. WE HAVE TWO MODES OF DEPLOYMENT. ONE IS THROUGH OUR NATIVE API FOR NEW APPLICATIONS. FOR EXISTING APPLICATIONS WE CONNECT TO DRIVERS LIKE ODBC, JADA BC, SUPPORTING DATABASES THAT ENSURE THERE’S NO CHANGES NEEDED FOR EXISTING APPLICATIONS. >>OKAY. SA COUPLE OF QUESTIONS. FIRST ONE, ARE YOU BILLING YOURSELVES AS A FIN TECH AND TARGETING FINANCAL SERVICES? SECONDLY, CAN YOU GIVE ME AN EXAMPLE OF A REALLY PRACTICAL USE CASE FOR THE TECHNOLOGY SO THAT WE CAN REALLY BRING IT TO EARTH FOR US AS JUDGES?>>ABSOLUTELY. SO FIRST OF ALL, WE HAVE STARTED FOCUSING ON FINANCIAL INSTITUTIONS, BECAUSE WE HAVE SEEN — THERE ARE A COUPLE OF THINGS. THERE IS A HIGH IMPACT ON A POTENTIAL DATA BREACH, AND REGULATION. ALSO THE LEVEL OF SOPHISTICATION, BECAUSE ENCRYPTION IS A NICHE FIELD. YOU NEED TO TALK TO PEOPLE, AND THEY SHOULD UNDERSTAND IT. STARTING FROM THERE, BUT OBVIOUSLY WE ARE SEEING APPLICATIONS IN HEALTH CARE, IN GOVERNMENT AND DEFENSE, AND OTHER FIELDS.>>AND THEN CAN YOU GIVE ME A REALLY PRACTICAL USE USE?>>IN TERMS OF THE USE CASE, I’M EXPLAIN TO YOU VERY BRIEFLY WHAT WE SAW IN THE DEMO IN TERMS OF THE ACTUAL USE CASE, SOMETHING WE ARE WORKING ON RIGHT NOW. THIS VERY LARGE BANK IS PULLING TOGETHER ON-PREM DIFFERENT IOT DATA. THEY WANT TO BE ABLE TO PUSH THEM ALL AND PULL THEM ON THE CLOUD IN ORDER TO BE ABLE TO RUN ANALYTICS ON THE BACK OF IT. THERE ARE PARTICULAR REQUIREMENTS THERE BECAUSE WE’RE TALKING ABOUT SENSITIVE DATA, ABOUT ENCRYPTION, IN-TRANSIT ENCRYPTION, FINDING THE BEST WAY TO SECURE THIS DATA, AND ALSO CONSUME IT. IN OUR CASE, WHAT HAPPENS IS THAT OUR DOCKER SITS WHERE THEIR RUN TIME ENVIRONMENT IS. THE FIRST STEP, ONCE THE DATA GOES INTO THE CLOUD, AND THEN WE BROKE THIS STREAM OF DATA BEFORE IT GETS STORED. WHAT IT MEANS, IT’S TWO-FOLD. ONE THING IS ABOUT THE ROBUSTNESS OF THE SECURITY. SO WE DON’T ONLY SECURE THE DATA ADDRESSED, WE REPLACE THE NEED FOR IN-TRANSIT, ALSO WE SECURE IT IN MEMORY. SOMETHING ELSE THAT IS OF INTEREST IS THE FACT THAT WHILE THE DATA IS ENCRYPTED ON AN OBJECT STORAGE IN THIS CLOUD PROVIDER, IT CAN BE DIRECTLY CONSUMED THROUGH SQL QUERIES. THEY DON’T NEED TO MOVE INTO ANOTHER STAGING ENVIRONMENT TO DO IT. IT’S A COMBINATION OF BOTH SECURITY AND FUNCTIONALITY IN TERMS OF OUR PRODUCT OFFERING. >>THANK YOU. >>YOU MENTIONED MARIA AND MY SQL. DO YOU WORK WITH OTHER DATABASES AS WELL? THAT SPACE IS BIG, OBVIOUSLY. IT’S ALSO QUITE FRAGMENTED. DATABASES BECOME MORE AND MORE SPECIALIZED, RIGHT?>>YEAH. SO RIGHT NOW WE ARE WORKING IN MODE B AND POSKUS INTEGRATE. IT’S NOT POSSIBLE TO GO DIRECTLY, WE WOULD NEED TO COLLABORATE WITH MICROSOFT OR ORACLE IN ORDER TO HAVE ACCESS TO THEIR CLOSER DRIVERS. >>YEAH. AND YOU MENTIONED THAT YOU FOCUS ON FIN TECH BECAUSE OF THE SEVERITY OF BREACHES, OBVIOUSLY. DO YOU FEEL THAT THIS IS ALSO A GO-TO MARKET OPPORTUNITY FOR YOU TO ACTUALLY WORK WITH THESE DATABASES AND BECOME AN ADD-ON TO THEIR SALE?>>THAT’S A GREAT QUESTION. IT GIVES ME A GOOD PATH TOO, BECAUSE I SKIPPED A LITTLE BIT THAT PART. YES, WE SEE AS THE BIG OPPORTUNITY IS THE FINANCIAL SERVICES. OBVIOUSLY THE FEEDBACK LOOPS ARE QUITE LONG. THE TIME TO MARKET THERE. SO OBVIOUSLY WE HAVE SOME EARLY INTEREST THAT WE TALKED ABOUT, AND WE ARE PROCEEDING WITH IT. BUT WE ARE OPENING UP MORE IN THIS FIRST STAGE TO MORE MEDIUM-SIZED COMPANIES OF GENERAL INTEREST THERE, RIGHT? SO BECAUSE THAT ENABLES US TO GET FASTER FEEDBACK LOOPS. AGAIN, AS I SAID, WE SEE THE BIGGEST OPPORTUNITY IN THE NEXT THREE YEARS IN THE FINANCIAL SERVICES SECTOR ALTOGETHER. NOW ON THE SECOND PART OF YOUR QUESTION, WE SEE A WAVE OF FINANCIAL SERVICES. EVEN BIG FINANCIAL SERVICES. MOVING TO THE CLOUD, TO DIFFERENT DATABASES. MARIA, MY SQL, ET CETERA. A LOT OF THEIR SYSTEMS ARE STILL MAINFRAME SO IT WILL TYKE SOME TIME, EVOLVING MARKET. >>HOW DO YOU PRICE THIS BEING IT’S BEING BUNDLED WITH OPEN SOURCE DATABASES IN SOME CASES? HOW DOES THE CUSTOMER THINK ABOUT PAYING FOR THIS?>>SO FAR WE STILL HAVEN’T CRITICALIZED THE FINAL MODEL FOR PRICING, SO WE’RE WORKING ON IT RIGHT NOW. IN MOST CASES THEY ARE HAPPY WITH OUR APPROACH IN TERMS OF VOLUMES OF DATA THAT WE HELP THEM STORE AWAY. SO YEAH. >>MAYBE TO FOLLOW UP AGAIN ON THIS POINT, ON THE GO TO MARKET, BECAUSE IT SOUNDS VERY AMBITIOUS. IT’S A SENSITIVE TOPIC. AND YOU’RE GOING AFTER VERY LARGE ENTERPRISES WITH VERY, VERY LONG SALES CYCLES WHERE ACTUALLY YOU COULD IT RATE MORE BY FOCUSING MORE ON DIM TALL SERVER TYPE OF BUSINESSES WITH A LOT OF DATA. SO YOU’RE MENTIONING NOW MAYBE YOU’RE GOING TO GO TO MID-SIZED COMPANY. BUT THINKING ABOUT THE PLAN AHEAD, THE REAL FOCUS IS GOING TO BE REALLY THE NEXT TWO OR THREE YEARS TO FOCUS ON THIS BIG FINANCIAL INSTITUTION ONLY?>>SHORT-TERM, WE’RE TALKING WITH ALSO SMALLER-SIZED COMPANIES. WE’RE TALKING WITH THE B2B E-COMMERCE PLATFORM, AND MARIA EXPERT HOUSE, SO TALKING WITH SMALLER PROVIDERS TO GET ITERATIONS OF OUR PRODUCT GOING. AND WE HAVE THE STREAM WITH FINANCIAL SERVICES. I WOULD SAY THIS IS A LONGER-TERM KIND OF GAME, SO IT TAKES FAR LONGER. BUT LET’S SAY THAT THE SHORTER TIME PLAN IS FOCUSING ON MEDIUM, SMALL-SIZED BUSINESSES. AND WHAT YOU MENTIONED, SOME NATIVE, CLOUD NATIVE COMPANIES SEEM TO BE FASTENER TERMS OF MOVING AHEAD WITH THIS. >>ALL RIGHT, GIVE IT UP FOR CALYPSO! NEXT UP WE HAVE APOLLO 1, PRESENTING FOR APOLLO 1 ARE DAN GINDUSO AND GENEVIEVE LAWSON.>>IN 2018, WE WILL LIKELY SEE EDUCATION INSTITUTIONS START TAKING A STUDENT-CENTERED, DESIGN-THINKING APPROACH WITH THE FOCUS ON MEETING EXPECTATIONS OF TODAY’S STUDENTS. HELPING INSTITUTIONS TO OPTIMIZE AND MODERNIZE WITH THAT STUDENT JOURNEY IN MIND. FOLKS, THEY WERE TALKING ABOUT TODAY. INTRODUCING YOU BY APOLLO 1. YOU IS A COMBINATION OF SCHOOLS, E-LEARNING PLATFORMS, CORPORATE TRAINING AND MORE. STUDENTS CREATE A GLOBAL REPORT CARD AS THEY MOVE IN AND OUT OF EACH INSTITUTION WITHIN A SINGLE EDUCATION PLATFORM. YOU IDENTITY, YOUR GLOBAL EDUCATION IDENTITY, THAT’S THE GLUE THAT’S PULLING ALL THOSE COURSES THAT YOU’RE TAKING TOGETHER TO CREATE A SINGLE SCHOOL THAT IS OPTIMIZED AND MODERNIZED TO MEET THE NEEDS AND EXPECTATIONS OF A SINGLE STUDENT AT THE CENTER OF IT ALL, YOU. CUT TO DEMO. AS DAN ENTERS INTO YOU, HE GOES THROUGH AN ONBOARDING PROCESS TO UNDERSTAND THE BENEFITS OF USING THE SOFTWARE. IT CAN GET STARTED. AND HE WILL START A SELF ASSESSMENT WHERE HE STARTS PUTTING IN THINGS LIKE LEARNING PREFERENCES, LEARNING STYLES, BEHAVIORAL TRAITS, AND PERSONALITY STYLES. ONCE DAN HAS DONE THAT HE CAN GO INTO THE ANALYTICS DASHBOARD AND START DRILLING IN TO BECOME MORE SELF-AWARE OF WHERE HE STANDS. I WILL LIKELY HAVE TO START PRACTICING SOME PUBLIC SPEAKING, ACCORDING TO THAT. DAN CAN START TO REQUEST A PEER ASSESSMENT FROM SOMEBODY HE’S WORKED WITH, PERHAPS ON A MARKETING PROJECT. IT GOES INTO THE PLATFORM, CHOOSES WHETHER HE WANTS TO BE REVIEWED ON COMMUNICATION SKILLS OR PROJECT MANAGEMENT SKILLS, AND SENDS OUT THE REQUESTS WITHIN THE DECENTRALIZED ECOSYSTEM. DAN CAN ALSO RECEIVE REQUESTS FROM OTHER STUDENTS WITHIN THE ECOSYSTEM. ONCE HE OPENS IT UP, HE WILL SAY WHETHER HE WILL RECOMMEND THAT PERSON AS A FUTURE TEAMMATE AND THEN START DRILLING INTO THAT AND ASSESSING THAT PERSON’S SKILLS AS WELL. BACK TO PRESENTATION. WHAT WE JUST SAW IS A DECENTRALIZED SERUM SYSTEM FOR ONE PERSON. IT’S PULLING TOGETHER — IT HAS A TASK MANAGER TO MANAGE YOUR INCOMING TASKS. IT HAS AN ANALYTICS SECTION TO DO PERSONAL INSIGHTS AND LOOK INTO YOUR DATA. BUT MOST IMPORTANTLY, AS YOU’RE ANSWERING THOSE QUESTIONS, WHAT’S HAPPENING IS WE’RE PULLING THAT DATA IN AND PUTTING IT — ORGANIZING IT INTO A PROFILE. A PROFILE THAT IS USED TO PERSONALIZE EDUCATION WITHIN EACH STOP OF THE EDUCATION ECOSYSTEM. SO ANY LEARNING PLATFORM IN THE ECOSYSTEM CAN READ OFF THAT DATA AND PERSONALIZE LEARNING TO YOU. MOST IMPORTANTLY, THE DATA THAT IS IN THAT — THE DATA THAT IS IN THERE IS NOT OWNED BY YOU, IT’S OWNED BY YOU. A PROFESSOR AT HARVARD BUSINESS SCHOOL MENTIONED THAT IN THE NEXT 10 TO 15 YEARS, 50% OF U.S. UNIVERSITIES ARE GOING TO GO BANKRUPT. UNIVERSITIES ARE LOSING THEIR RELEVANCE. THEY’RE NO LONGER PREPARING STUDENTS FOR THE WORKFORCE. LUCKILY, UNIVERSITIES ARE NOT THE ONLY PLAYER IN THE HIGHER EDUCATION INDUSTRY THAT TO YOU IS VALUED AT $1.8 TRILLION. IN THAT INDUSTRY, CLASSROOMS LIKE THE ONE ON THIS PICTURE ARE GOING BY THE WAYSIDE. AND PEOPLE ARE MOVING ONLINE IN MASSES. IN THE NEXT TWO YEARS, IT’S EXPECTED THAT 50% OF LEARNING WILL TAKE PLACE ONLINE. AND AS THAT’S HAPPENING, THE E-LEARNING INDUSTRY IS EXPECTED TO REACH $325 BILLION BY THE YEAR 2025. OUR SOFTWARE IS FREE SOFTWARE. IT WILL EVENTUALLY BE OPEN SOURCE. THE REASON IS BECAUSE OUR MISSION IS TO PROVIDE OPEN AND EQUAL ACCESS TO EDUCATION ACROSS THE GLOBE. YOU IS A — YOU IS PART OF A NONPROFIT SUBSIDIARY OF APOLLO 1, SIMILAR TO THE LINUX FOUNDATION. WE DO HAVE OTHER PRODUCT THAT WE’RE WORKING ON THAT IS A PAID — THAT IS NOT A NONPROFIT. BUT THIS IS THE FIRST PART THAT IS CRITICAL TO MAKING THAT PIECE WORK. IT RELIES ON MEMBERSHIP DONATIONS SIMILAR TO LINUX FOUNDATION, AGAIN FROM ED TECH COMPANIES, INDIVIDUALS, AND EDUCATION INSTITUTIONS THAT WANT TO TAKE PLACE — THAT WANT TO BE INVOLVED IN A PLATFORM AND PERSONALIZED TO ALL THEIR STUDENTS. THE U.S. DEPARTMENT OF EDUCATION RECENTLY SELECTED US AS A WINNER IN THEIR SEARCH FOR COMPANIES REIMAGINING THE FUTURE OF HIGHER EDUCATION. USD ADVENTURES HAS INCUBATED US ON A CAMPUS WITH 50,000 POTENTIAL STUDENTS AS A PILOT. WE ARE WORKING WITH TEACHERS TO POTENTIALLY PILOT SOME BLOCK CHANGE CASES BY TRANSFERRING — SORRY — BY TRANSFERRING YOUR DIPLOMAS OR DEGREES TO YOUR DECENTRALIZED PROFILE. OUR TEAM IS MADE UP OF ANDREN, MIT ENGINEER. GENEVIEVE, IN CHARGE OF COMMUNITY AND OPERATIONS. SKYLER, SOFTWARE ENGINEER. MYSELF, CRM MARKET TECH AND DECENTRALIZED AUTONOMOUS ORGANIZATION EXPERT. IF YOU OR — IF YOU ARE AN INDIVIDUAL ED TECH COMPANY OR EDUCATION INSTITUTION INTERESTED IN PERSONALIZING TO ALL OF YOUR STUDENTS WITHIN A SINGLE ECOSYSTEM, PLEASE VISIT APOLLO1.COM AND REACH OUT TO ME AND I’D BE HAPPY TO TALK TO YOU. THANK YOU.>>JUDGES?>>I HAVE TO ASK ABOUT THE NAME. APOLLO 1. YOU KNOW.>>APL 01, SWIPING LEFT AND RIGHT FOR EVERY ENTRY TO REBUILD YOUR DATABASE. >>NOTHING TO DO WITH THE ROCKET?>>IT DOES, BECAUSE EVENTUALLY I HOPE — WE’RE PART OF THAT PILOT WITH THE TEACHER TESTING BLOCK CHAIN INTEGRATIONS TO TRANSFER DEGREES AND CREDENTIALS TO PROFILES. SO THEY DO SAY THE BLOCK CHAIN WILL TAKE YOU TO THE MOON AND THAT’S WHAT WE’RE GOING TO DO.>>ONE MORE QUESTION, IF I MAY. IT’S A BIG IDEA. BIG VISION. BUT WHAT’S KIND OF THE PAIN POINT, WOULD YOU SAY? WHAT’S KIND OF THE MAIN PAIN POINT? YOU MENTIONED UNIVERSITIES HAVE ISSUES.>>I’LL SAY THE MAIN PAIN POINT IS THAT IN THE NEXT 10 TO 15 YEARS, 30% TO 40% OF THE PEOPLE IN THE WORLD, AT LEAST IN THE UNITED STATES — I WOULD IMAGINE EVERYWHERE ELSE — ARE GOING TO BE OUT OF WORK FROM AUTOMATION. AT THE SAME TIME I GAVE A STATISTIC, AT THE SAME TIME 50% OF UNIVERSITIES WILL GO BANKRUPT. SO IF THERE’S NOT SOMETHING TO CATCH ALL THOSE STUDENTS, WE’RE GOING TO BE IN A LOT OF TROUBLE. BECAUSE WHEN YOU LOSE YOUR JOB, THE ONLY PLACE YOU CAN TURN IS EDUCATION.>>I GUESS MY QUESTION IS A FOLLOW-ON FROM YOURS. I’M STRUGGLING TO SEE THE INCENTIVE OR BENEFIT FOR STUDENTS TO USE THE PLATFORM. BECAUSE AGREED, IT’S A BIG IDEA. BUT WHY WOULD I PUT MY DATA IMMUTABLY IN A CRM PLATFORM? WHAT’S THE BENEFIT FOR ME IF I’M A STUDENT?>>IT’S ACTUALLY NOT. YOU OWN YOUR OWN DATA, I DON’T OWN ANY OF IT. YOU OWN AND MANAGE IT YOURSELF. AND SO IT IS ACTUALLY A WAY FOR YOU TO START FURTHER DOWN THE ROAD, YOU CAN LICENSE YOUR DATA YOURSELF. YOU AREN’T PUTTING IT ANYWHERE BUT ON YOUR OWN DEVICE OR IN YOUR OWN CLOUD STORAGE. >>WHAT AM I GOING TO USE THAT DATA FOR? CAN YOU GIVE ME A REALLY PRACTICAL EXAMPLE?>>SURE. SURE. SO, FOR INSTANCE, I’M GOING TO USE IT TO PERSONALIZE YOUR EDUCATION EXPERIENCE. THE SAME WAY THAT YOU CAN GET ADVERTISING OR PRODUCTS PERSONALIZED TO YOU WHEN YOU’RE SHOPPING OR ON FACEBOOK, I’M GOING TO DO THAT TO PRESENT YOU WITH WORK OPPORTUNITIES AND WITH EDUCATION OPPORTUNITIES THAT MEET THE WAY THAT YOU WANT TO BE LEARNING AND THE WAY YOU’RE CAPABLE OF LEARNING. >>OKAY, THANK YOU.>>WHICH BLOCK CHAIN PROTOCOL HAVE YOU CHOSEN TO WORK WITH, AND WHY?>>I USE HYPERLEDGER. BECAUSE I BELIEVE EVERY INDIVIDUAL IS THEIR OWN BUSINESS. AND IT’S THE MOST PRIVATE AND SECURE WAY TO KEEP PRIVACY, IN MY OPINION.>>YOU KNOW, SORT OF THE VISION OF A DIGITAL IDENTITY THAT CAN BE SORT OF OPEN AND FREELY USED ACROSS A DECENTRALIZED SYSTEM, I MEAN — YOU KNOW, IT’S A 25-YEAR-OLD PLUS IDEA. WE’VE SORT OF SEEN THAT, YOU KNOW, WITHOUT HAVING A DOMINANT USE CASE LIKE FACEBOOK OR TWITTER, YOU KNOW, IDENTITY IS A VERY HARD THING TO BOOTSTRAP. WHEN YOU THINK ABOUT LIKE THE 405 EARLY ADOPTERS OF YOUR SORT OF OPEN SOURCE TECHNOLOGY, WHO DO YOU NEED TO BE WORKING WITH TO MAKE THIS WORK?>>YEAH, I THINK — I THINK SOME OF THE BIGGEST POTENTIAL USERS ARE IN PLACES LIKE AFRICA AND INDIA, ACTUALLY. I THINK IN INDIA, YOU HAVE A LOT OF PROBLEMS RIGHT NOW WHERE THERE’S A LOT OF STUDENTS WHO WANT TO COME OUT AND THEY WANT TO BE IN THE A.I. SPACE, FOR INSTANCE. THEY’RE GOING TO SCHOOL, GETTING A DEGREE. BUT THERE’S FIVE OR SIX OF THESE COURSES OUT THERE THAT THEY NEED TO TAKE IN ORDER TO GET HIRED BY A PLACE LIKE GOOGLE FOR A.I. AND SO THAT’S A BIG POTENTIAL MARKET TO BE ABLE TO PULL THAT TOGETHER INTO A VERIFIED AND VALIDATED SOURCE WHERE THEY CAN SAY, I COMPLETED THIS DEGREE AND I COMPLETED ALL THESE COURSES, AND HERE IT IS IN ONE SPOT. >>THAT MEANS YOU’VE GOT TO WORK WITH CORSERA. MY QUESTION IS LIKE, WHO DO YOU HAVE TO WORK WITH –>>OH. >>TO BOOTSTRAP THE NETWORK RIGHT EFFECT?>>THROUGH THE INSTITUTIONS AND THAT’S WHY I’VE BEEN WORKING WITH DEPARTMENT OF EDUCATION AND USC ON THIS. I THINK THEY’RE GOING TO BE NEEDED AT FIRST TO GET THIS ROLLING. IT’S GOING TO TAKE A LOT OF — CORSERA IS ANOTHER ONE. I THINK YOU HAVE TO GO THROUGH THE INSTITUTIONS AT FIRST, AS MUCH AS I WOULD LIKE IT TO BE GROUND-UP FROM THE INDIVIDUAL LEVEL. I THINK IT’S GOING TO HAVE TO START LIKE THAT, THEN EVENTUALLY I DO WANT — I DO EXPECT TO BE ABLE TO SPREAD IT OUT TO WHERE THE PEOPLE ARE AT THE INDIVIDUAL LEVEL THAT’S OPERATING. BUT I KIND OF SEE ALL THOSE INSTITUTIONS. I THINK THERE’S A LOT OF VALUE IN BEING ABLE TO PERSONALIZE. I KNOW THAT EDUCATION INSTITUTIONS, ESPECIALLY UNIVERSITIES WHO ARE STRUGGLING RIGHT NOW, WANT TO BE ABLE TO COMPETE WITH SOME OF THOSE ONLINE SCHOOLS. SO THE ABILITY TO HAVE THAT INFORMATION ABOUT EVERY STUDENT COMING IN IS HIGHLY VALUABLE TO THEM.>>FINAL QUESTION?>>YEAH, YOU MENTIONED THAT IT’S GOING TO BE FOR FREE, OBVIOUSLY FOR THE STUDENTS, I ASSUME, ALSO FOR THE SCHOOLS?>>YEAH. >>WHAT’S THE THINKING BEHIND THAT? IS THE THINKING THAT THIS TAKES AWAY THE BARRIER OF HAVING TO BUY SOMETHING? AND HOW DO YOU ENVISION ADOPTION?>>YEAH, THE SOFTWARE IS FREE BECAUSE I BELIEVE THAT EDUCATION NEEDS TO BE OPEN. AND I THINK THAT’S A BIG PROBLEM THAT EVERY TIME WE KEEP STARTING SOMETHING IN EDUCATION, IT STARTS CLOSED AND NOT OPEN ACCESS, AND THAT CREATES A PROBLEM. WHAT I AM CREATING IS A DECENTRALIZED AUTONOMOUS ACCELERATOR THAT GOES ALONGSIDE THIS. AS I PLUG THOSE PEOPLE AND MATCH THEM TO WORK AND THEY’RE ALL WORKING TOGETHER WITHIN A SINGLE PLATFORM, THAT’S WHERE I’M ABLE TO CAPTURE FEES. >>LET’S HAVE ONE MORE ROUND OF APPLAUSE FOR APOLLO 1! WE HAVE ONE FINAL STARTUP IN THIS ROUND. THAT STARTUP IS V2X NETWORK, PRESENTING ASAN SHAMIN AND HULDRA GOK. >>THANK YOU, GUYS. THIS IS FROM 1998. THE MOST YOU COULD GET OUT OF IT WAS BASICALLY A CHECK IN THE LIGHT, THAT’S IT. AND NOW LOOK AT THIS TESLA. A CAR FULL OF SENSORS, PRODUCING A LOT OF DATA. AND WE KNOW FROM OUR HANDS-ON EXPERIENCE THAT EACH AUTONOMOUS AND SMART PRODUCER OF 4 DATA BYTES OF DATA PER DAY. IT CONSISTS OF JUDGING CONDITIONS, DRIVING CONDITIONS, RADARS, SENSORS, YOU NAME IT. BASICALLY CARS HAVE BECOME ROLLING DATA SERVERS. BUT THE QUESTION IS, HOW CAN WE MAKE USE OF THIS DATA? OR CAN WE MAKE USE OF THIS DATA? ABSOLUTELY, YES. WE CAN PROVIDE IT TO THE PEOPLE WHO CAN IMPROVE TRAVEL EXPERIENCE, WHO CAN BUILD BETTER CITIES, CAN BUILD BETTER CARS FOR US. BUT THAT’S WHY WE HAVE TO HAVE A V2X NETWORK. THE FIRST INCENTIVIZING PLATFORM PROVIDING ACCESS TO THE CAR DATA. THE NETWORK IS A DECENTRALIZED PLATFORM PROVIDING REALTIME ACCESS TO THE CAR DATA. THIS MEANS UNLOCKING A HUGE POTENTIAL OF MANY CONNECTED CARD SERVICES. LET ME SHOW YOU HOW IT WORKS. WE BASICALLY HAVE A HYBRID CONNECTED WITH THIS SOLUTION. ON ONE HAND WE WORK WITH THE CAR MANUFACTURERS THAT CONNECT TO THE CARS FROM THEIR BACKBONES. ON THE OTHER SIDE WE HAVE A SOLUTION TO CONNECT THE OLDER CARS TO A NETWORK. THIS IS A V2X NETWORK PROTOTYPE THAT YOU CAN INSERT, BLOCK CHAIN THAT YOU CAN INSERT IN ANY CAR, ANYWHERE IN THE WORLD, AND START SHARING THE LIVE DATA WITH US. MOVE TO THE DEMO, PLEASE. SO THIS IS THE WEB INTERFACE FOR V2X NETWORK. IF YOU LOG IN WE GO TO THE DASHBOARD. THERE’S A COUPLE OF THINGS YOU CAN DO ON THE DASHBOARD, INCLUDING THE MANAGEMENT. LET’S GO TO THE MOST INTERESTING THING, TRIPS. IN THE TRIPS WE CAN SEE THE CAR’S LIVE, CONNECTED TO A NETWORK RIGHT TO YOU. THERE’S ONE ACTIVE TRIP. THAT’S BASICALLY SOMEBODY DRIVING LIVE IN MUNICH RIGHT NOW. TO SHOW YOU THIS THING ACTUALLY WORKS, I’M GOING TO HAND THIS TO MY COLLEAGUE WHO’S GOING TO PLUG IT INTO AN EMULATOR AND WE’LL SEE THE SECOND CAR CONNECTED TO THE NETWORK RIGHT NOW LIVE. SINCE WE ARE INSIDE THE ROOM, UNFORTUNATELY, WE WON’T BE ABLE TO SHOW THE JPS DATA. AND THERE’S A LIMITATION IN TERMS OF WHAT WE CAN COLLECT FROM THE EMULATOR. BUT THE POINT WHAT WE ARE TRYING TO SHOW YOU IS HOW EASY IT IS FOR US TO COLLECT THE DATA AND WHAT IS IT THAT WE CAN MAKE USE OF THIS DATA? SO NOW THAT WE HAVE — YEP. WELL. NO DEMO IS LIVE IF IT ALWAYS WORKS. IS IT CONNECTED?>>IT IS CONNECTED BUT IT SEEMS TO HAVE A LITTLE LAG.>>OKAY. ANYWAYS, LET’S GO TO THE TRIP DECK SUMMARY RIGHT NOW. OKAY, SO AS YOU CAN SEE, THAT WE ARE COLLECTING THE DATA LIVE FROM MUNICH RIGHT NOW. THIS IS MAPS FROM MUNICH. SOMEBODY IS DRIVING AROUND. HE’S CHANGING THE SPEED. BUT THE MOST IMPORTANT THING TO SEE IS THAT THE KIND OF THE DATA THAT WE ARE COLLECTING AND THE WAY WE ARE ANALYZING IT IS EXACTLY THE KIND OF DATA — AN INSURANCE PROVIDE IRWOULD NEED TO PAY AS YOU DRIVE SERVICE, A SMART FLEET COMPANY WOULD NEED TO IMPROVE THE FLEET CARS, SO THAT’S WHAT WE DO. THAT’S NOT THE OLD DATA, THAT’S THE VISUALIZATION. AT THE BACK END WE COLLECT A LOT OF DATA FROM DIFFERENT SENSORS. MOVE BACK TO THE PRESENTATION, PLEASE. NO, SORRY, BACK TO THE DEMO. ONE IMPORTANT THING I FORGOT TO MENTION, NOW THAT WE ARE COLLECTING THE DATA, THE QUESTION IS WHY WOULD SUMMI GIVE THIS DATA TO US FOR FREE? THAT IS EXACTLY WHY WE HAVE IMPLEMENTED AN AUTOMATIC INCENTIVE MECHANISM WHICH CONTRIBUTES OR FEEDS YOU BACK THE AMOUNT. YOU KNOW SOMETHING THAT WE LEARN FROM YOUR DATA, WE PAY YOU BACK. THAT’S WHY WHEN WE END THE TRIP, IT’S A BLOCK CHAIN ENTITY. WE GIVE YOU BACK SOMETHING AND YOU CAN ACTUALLY RUN PRIVATE TRANSACTIONS ON OUR NETWORK. SUMMY HAS PROBABLY ALREADY RECEIVED SOMETHING BACK IN HIS WALLET. YOU CAN VERIFY THE TRANSACTIONS IN OUR WEB INTERFACE. BACK TO THE PRESENTATION, PLEASE. WHAT’S UNIQUE ABOUT OUR SOLUTION IS THE WAY WE HAVE ARCHITECTURED IT. WE HAVE CREATED A DECENTRALIZED SYSTEM BETWEEN CAR OWNERS AND DATA CONSUMERS. AND IT’S AS COMPARED TO COMPETITORS, WE ENSURE THE DATA DISTRIBUTION BY DESIGN. WE BELIEVE THIS IS VERY IMPORTANT TO PROMOTE THE INNOVATION AND PROMOTE THE COMPETITION. AND THE MARKET FOR THE CONNECTED CAR SERVICES IS HUGE. ONLY IN EU IN 2021 IT’S GOING TO BE UP TO $31 BILLION. THAT’S A HUGE MARKET. WE HAVE A VERY WELL DEFINED STRATEGY OF HOW WE WANT TO GROW. LAST WEEK WE GOT THE GREAT NEWS THAT TWO OF THE MAJOR EUROPEAN CAR MANUFACTURERS WOULD LIKE TO TRY OUR SOLUTIONS, SO THEY HAVE CONFIRMED IT. AND THIS GIVES US EVEN HIGH CONFIDENCE THAT WE CAN ACHIEVE OUR GOALS. SO MEET THE TEAM, PLEASE. THAT’S US, ALL OF US. WE HAVE A COUPLE OF YEARS OF AUTOMOTIVE EXPERIENCE. WE HAVE WORKED WITH DIFFERENT CAR MANUFACTURERS. AND WHATEVER WE ARE DOING RIGHT NOW, IT’S OUR HANDS-ON EXPERIENCE. AND THE MOST IMPORTANT THING THAT IS WE ARE REALLY PASSIONATE ABOUT WHAT WE DO. SO TAKE THE CONTROL BACK OF YOUR DATA. GET INCENTIVIZED FOR WHAT YOU CONTRIBUTE TO US. PLEASE HELP US BUILD A NEW NEW ECOSYSTEM FOR THE MOBILITY TO IMPROVE THE SYSTEM. THANK YOU.>>JUDGES?>>SO I JUST WANTED TO CLARIFY. WHO ACQUIRES THIS DEVICE? IS IT THE CAR MANUFACTURER AND IT’S PREINSTALLED DURING MANUFACTURING? IS IT THE INSURANCE COMPANY? OR IS IT THE INDIVIDUAL CONSUMER? AND WHY?>>FOR THE NEW CARS, BY DEFAULT EVERY CAR IS ALREADY CONNECTED TO THE NETWORK. ALL THE NEW CARS BEING PRODUCED. WE DON’T NEED TO INSERT THIS. WE GET THE CAR CONNECTED LIVE. >>IS IT RETROACTIVE?>>THIS IS FOR THE OLD CARS ON THE MARKET. YOU CAN INSERT IT AND IT GETS CONNECTED. WHAT WAS YOUR SECOND QUESTION?>>I REALLY WANTED TO UNDERSTAND, ARE YOU SELLING THIS TO THE CAR MANUFACTURERS? TO THE INDIVIDUAL CONSUMER? OR TO THE INSURANCE COMPANIES?>>WE ARE IN ACTIVE DISCUSSION WITH DIFFERENT INSURANCE PROVIDERS. THEY WOULD LIKE TO SUBSIDIZE THIS THING SO THAT THEY CAN DISTRIBUTE AMONGST THEIR EXISTING CUSTOMER BASES. AND THE SAME FOR THE FLEET MANAGERS. THEY WOULD DISTRIBUTE IT AMONG THEIR FLEET.>>DO YOU SEE THE END MARKET ON THE DEMAND SIDE BEING ONLY THE INSURANCE COMPANY?>>OH, NO. IT HAS A HUGE POTENTIAL, THAT’S WHAT WE BELIEVE. LIKE INSURANCE, SMART CITIES, WHATEVER. YOU KNOW, LIKE SMART CITIES WOULD ALSO NEED THE DATA LIVE FROM THE CARS TO DO THE URBAN PLANNING. INSURANCE IS ONE THING, SMART STREET MANAGEMENT, ALSO A LIVE VIDEO STREAM COULD BE USED TO SIMULATE THE AUTONOMOUS CARS. SO THERE’S A LOT OF USE CASES FOR THIS DATA. AND MAPPING UPDATES, REALTIME TRAFFIC INFORMATION, WE CAN MAKE A COUPLE MORE.>>JUST IN FULL DISCLOSURE CMS IN AWENOMO BASED IN ISRAEL WHO PROVIDE DATA INTFRASTRUCTURE FO CONNECTED CARS THAT INSURANCE COMPANIES AND APP DEVELOPERS CAN USE AND OEMs AND THE AUTOMOTIVE SUPPLY CHANGE ADOPTED. THEY’VE GOT QUITE A LOT OF FOLLOW-ON FUNDING. HOW WOULD YOU SORT OF DIFFERENTIATE YOURSELF FROM THOSE GUYS? AND WHO ELSE IN THE MARKET DO YOU SEE? AS YOU SAY, IT’S A HUGE MARKET. I THINK YOUR SOLUTION’S REALLY ELEGANT. HOW DO YOU SORT OF SEE THE COMPETITIVE LANDSCAPE?>>SO AUTONOMY IS DEFINITELY ONE OF OUR COMPETITORS. AND WHEN WE SEE OURSELVES — IF YOU SPEAK WITH TWO INSURANCE PROVIDERS AND WE TELL THEM THAT WHEN YOU GET THE DATA FROM US, YOU CAN ALWAYS BE SURE THAT IT’S UNDER STARTED. AT THE SAME TIME THERE’S A BLACK BOX SITUATION WHICH IS DIFFERENTLY ARCHITECTURED. YOU CAN NEVER BE SURE WHAT YOU GET OUT. NOT THAT WE SAY THEY WILL. THE BUYERS PREFER OUR SOLUTION BECAUSE THEY CAN ALWAYS BE ASSURED THIS IS ONE THING. ALSO THE INCENTIVE MECHANISM, WE PAYBACK TO YOU. WE GET THE DATA BACK TO YOU. WE SHARE THE REVENUE WITH YOU, AND WE UNDERSTAND YOU ALSO KNOW THE VALUE OF THAT. >>SO I’M BUYING A NEW CAR THAT’S COLLECTING ALL THE DATA. HOW DO YOU CREATE AWARENESS FOR ME THAT THERE IS ACTUALLY THIS OPPORTUNITY, RIGHT? DO YOU RELY ON THE INSURANCE? OR — BECAUSE WHAT YOU DO IS CREATE A MARKETPLACE FOR THIS DATA. BUT I HAVE TO KNOW THAT I HAVE THIS DATA. AND THEN WHAT DRIVES ME TOWARDS THAT?>>SO IN OUR PLATFORM, NO ONE CAN ACCESS YOUR DATA WITHOUT YOUR CONSENT. EVERY TIME A NEW APPLICATION WOULD LIKE TO REQUEST YOUR DATA, WE WILL GIVE YOU A POPUP MESSAGE ON YOUR CAR SCREEN THAT THIS APPLICATION WOULD LIKE TO ACCESS YOUR DATA. ONLY IF YOU ALLOW, WE WILL ALSO TELL YOU IN A POPUP MESSAGE WHAT IT IS YOU CAN –>>SORRY, MY QUESTION WAS A DIFFERENT ONE. MY QUESTION WAS, I BUY A NEW CAR. THE CAR COLLECTS DATA. HOW DO I KNOW ABOUT THIS? ARE YOU GOING TO TELL ME THIS? IS BMW TELLING ME YOUR CAR IS COLLECTING DATA, GO TO THIS APP AND SELL YOUR DATA OR TRADE IT?>>WHEN YOU BUY A NEW CAR, BASICALLY YOU SIGN A CONTRACT WITH THE CAR MANUFACTURER THAT THE SENSOR THAT IS SOMETHING THAT THEY WILL COLLECT FOR THE SAKE OF IMPROVEMENT OF SYSTEMS. AND WHEN WE REQUIRE IT WE TAKE YOUR CONTENT, DEFINITELY. >>TO ADD TO YOUR QUESTION, IT IS A HIGHLY, SAY, INDIVIDUALIZED APPROACH FOR EACH OEM WANTS TO HAVE A DIFFERENT STRATEGY WHEN IT COMES TO IT. DO THEY WANT TO GET INTERACTION WITH US ON THEIR USER INTERFACE? ON THEIR INFOTAINMENT INTERFACE? SOME COMPANIES DIFFERENT YATE THEMSELVES THROUGH THESE KIND OF SERVICES, OTHERS THROUGH THESE KIND OF SERVICES. IT’S NOT A STANDARDIZED APPROACH. WE HAVE TO LOOK INTO EACH CAR MANUFACTURER, BASICALLY HOW DO THEY WANT TO DO IT. >>YOU WORK WITH CAR MANUFACTURER?>>WE TALK TO CAR MANUFACTURERS, YES. >>ALSO DISCLOSURE, WE HAVE A BET ADJACENT TO THIS CALLED NEXAR. YOUR CHOICE OF ARCHITECT, SPECIFICALLY WHY YOU CHOSE A BLOCK CHAIN DECENTRALIZED APPROACH FOR THIS. >>IT’S A VERY VALID QUESTION. A LOT OF PEOPLE HAVE THIS CONCERN. WE ONLY USE BLOCK CHAIN AS A PART OF OUR NETWORK. IT’S NOT THAT OUR CORE ARCHITECTURE IS — OUR CORE ARCHITECTURE IS ALSO CENTRALIZED. WE GOT THE CONCEPT FROM THE BLOCK CHAIN ARCHITECTURE BUT WE DO NOT RELY ON BLACK CHAIN. HOWEVER, WE TAKE CERTAIN ADVANTAGES FROM BLOCK CHAIN THAT WE ADD INTEGRITY AND INCENTIVE MECHANISM ON BLOCK CHAIN. EVEN IF WE TAKE THE BLOCK CHAIN OFF, OUR NETWORK WOULD STILL WORK THE SAME. >>THANK YOU. >>GIVE IT UP FOR R2X NETWORK!>>THANK YOU. >>AND THAT WRAPS UP OUR FIRST ROUND OF STARTUP BATTLEFIELD. THE JUDGES ARE GOING TO FOLLOW ME BACKSTAGE AND THEY’RE GOING TO HELP US CHOOSE SOME FINALISTS. BEFORE THEY DO THAT, THOUGH, LET’S HEAR IT ONE MORE TIME FOR OUR AWESOME JUDGES.>>I LIKE THAT.>>LADIES AND GENTLEMEN, PLEASE WELCOME BACK TO THE STAGE “TECH GRUNGE” EDITOR JORDAN CROOK. >>HEY, HOW WE DOING? JUST SO MUCH ENTHUSIASM OUT OF YOU, BERLIN. NEVER CEASES TO AMAZE ME. AND JOHN. I’M GOING TO GET MORE AND MORE DEMANDING AS IT GOES ON, SO YOU MIGHT AS WELL JUST GIVE IN. OKAY, SO WE’RE NOT QUITE GOING TO LUNCH YET BUT I JUST WANT TO GIVE YOU GUYS A HEADS-UP THAT THERE ARE FOOD TRUCKS IN THAT DIRECTION AND THERE’S SIGNS THAT WILL HELP YOU GET TO THEM. SO WHEN LUNCH DOES COME, THAT’S WHERE YOU FIND IT. I WAS TOLD TO REMIND YOU. FROM THAT WE’RE JUST GOING TO GO INTO OUR NEXT PANEL. WHO’S HEARD OF LYME? YOU ALL LIKE TO USE SCOOTERS? YOU FEEL GOOD ABOUT YOURSELVES? NO, I’M JUST KIDDING. ALL RIGHT. WITH THAT, WE’LL BRING UP MY — OUR NEXT GUEST FROM LYME, CANE CONTI AND YOUR MODERATOR AMANDA LAY.>>ALL RIGHT. I’VE BEEN VERY EXCITED ABOUT THIS SESSION. THANK YOU FOR COMING. >>OF COURSE, THANKS FOR HAVING US. >>LET’S TALK TO SOME MEMBERS. LYME HAS BEEN GROWING SO RAPIDLY. >>I THINK YOU NEED NUMBERS. >>I THINK YOU’RE LIVE IN 130 CITIES RIGHT NOW. >>CORRECT. >>THE LAST NUMBER YOU REPORTED IS 11.5 MILLION RIDES?>>NOW AT 20 MILLION RIDES. >>NOW 20 MILLION. >>YEAH. >>AND YOU’VE RAISED $450 MILLION IN FUNDING?>>$467 MILLION, YES. >>OKAY, OTHERS.>>$17 MILLION TAKES YOU A LONG WAY, I’M JUST SAYING. >>YEAH, THAT’S RIGHT. IT TOOK YOU AROUND 18 MONTHS. THAT’S INSANE. >>YEAH.>>WHEN DID YOU REALIZE THAT YOU HAD SOMETHING VERY SPECIAL AND YOU THOUGHT, OKAY, WE FOUND SOMETHING AND IT’S GOING TO BECOME BIG?>>WHAT’S BEEN AMAZING ABOUT THIS SPACE IS FROM DAY ONE, IT’S BEEN A ROCKET SHIP. WE LAUNCHED OUR FIRST PRODUCT IN JUNE OF 2017. FROM THAT MOMENT WE’VE BEEN MEETING DEMAND AND THE PRODUCT MARKET HAS BEEN AMAZING. >>YOU ARE IN CHARGE OF GLOBAL EXPANSION?>>CORRECT. >>WE TALKED ABOUT IT BACKSTAGE. BUT YOU MUST BE ON THE ROAD ALL THE TIME. HOW DO YOU MAKE SURE THAT YOU CAN TRAVEL EVERYWHERE, LAUNCH NEW CITIES, AND KEEP THE BUSINESS ON TRACK?>>MAIN THING IS THE PASSION OF REALLY BUILDING LOCAL TEAMS. I BELIEVE IN ORDER TO BE A LOCAL BUSINESS YOU NEED TO STAY LOCALIZED. MY LOVE IS COMING INTO PLACES, MEETING NEW TEAM MEMBERS, HELPING US SEE WHAT WE CAN DO IN THOSE CITIES, HAVE CONVERSATIONS WITH THOSE CITY STAKEHOLDERS. I’M HOME THREE OR FOUR DAYS A GO, I LIVE ON PLANES. >>YOU THINK YOU CAN HAVE MEANINGFUL CONVERSATIONS IF YOU KEEP PLAYING ALL AROUND THE WORLD ALL THE TIME?>>MY JOB IS TO BE ABLE TO BRING IN A TEAM THAT’S THERE ALWAYS TO HAVE A LONG-TERM RELATIONSHIP, TO BRING SOME OF THE KNOWLEDGE THAT WE’VE HAD BY BEING IN 130-PLUS MARKETS. OUR OBJECTIVE IS TO HAVE A CONVERSATION WHERE WE’RE NOT ONLY SHARING DATA, WE’RE TALKING ABOUT HOW CAN WE USE THAT DATA FOR PLANNING AND BUILDING A VISION OF THESE SMART CITIES. HOPEFULLY I’M THERE AS A CATALYZER AND BUILD A LONG-TERM TEAM FOR US TO WIN RELATIONSHIPS AND SUCCEED. >>IN 2014 I WAS LIVING IN SHANGHAI. THERE WERE A TON OF ELECTRIC SCOOTERS EVERYWHERE ALREADY. THAT WAS FOUR YEARS AGO. WHY DO YOU THINK IT TOOK SO LONG TO SEE ELECTRIC SCOOTERS IN THE U.S.?>>IT’S INTERESTING. EVEN NOW THERE’S ACTUALLY NOT A SHARED SYSTEM OF ELECTRIC SCOOTERS DISSEMINATED THROUGHOUT CHINA. I THINK IT’S A COMBINATION OF A PERFECT STORM OF A NUMBER OF FACTORS. IOT, A SCALED-UP SYSTEM, THE UNDERSTANDING ON THE FUND-RAISING SIDE THAT THIS IS AN OPPORTUNITY TO SCALE GLOBALLY. I THINK IT’S BEEN A PLACE WHERE NOW THAT WE’VE SEEN THE FIRST TRACTION, PEOPLE UNDERSTAND THE SCALEABILITY OF THIS, AND YOU SEE THE GROWTH OF THAT. >>IN CHINA MOST PEOPLE OWN THEIR SCOOTERS. DO YOU THINK THE SAME THING IS GOING TO HAPPEN IN THE U.S.? LET’S SAY, FOR INSTANCE, THAT SOMEBODY’S A VERY HEAVY LYME USER. THEY SPEND HUNDREDS OF DOLLARS PER YEAR ON LYME. MORE OR LESS THE SAME THING AS BUYING A SCOOTER. >>SURE, BUT WHEN YOU HAVE A SCOOTER YOU HAVE TO THINK ABOUT MAINTENANCE, PEOPLE STEALING IT. SOMETIMES YOU DON’T WANT A SCOOT WHERE YOU GO TO AN OFFICE AND AN OFFICE TO SOMEWHERE ELSE BUT YOU HAVE TO BRING IT WITH YOU. WHAT WE’RE SELLING IS NOT JUST THE TRIP BUT THE CONVENIENCE OF YOU LIVING A TRULY EMPOWERED LIFE AND MAKING THE MOST OF YOUR URBAN ENVIRONMENT. >>OKAY, LET’S BE SERIOUS NOW. I’M SURE YOU’VE SEEN THE BIRD GRAVEYARD INSTAGRAM ACCOUNT SHOWING A BUNCH OF ELECTRIC SCOOTERS SCATTERED ALL OVER THE STREETS OF SAN FRANCISCO. WHY DO YOU THINK PEOPLE HATE SCOOTERS SO MUCH?>>GOING BACK TO THE GRAVEYARD, IT COMES DOWN TO HOW DO YOU CREATE YOUR SCOOTERS AND YOUR PRIORITY. WE FOCUS ON CREATING A VERTICALLY INTEGRATED SUPPLY CHAIN. OUR SCOOTERS HAVE BEEN CUSTOMIZED FOR THE SHARED ENVIRONMENT. WHEN YOU’RE BUYING SCOOTERS THAT FOR PERSONAL MOBILITY, SLAPPING A STICKER ON THEM, THEY’RE NOT MADE FOR THE WEAR AND TEAR YOU SEE EVERY DAY. WE’VE MADE SURE WE’VE CREATED THE BEST, SAFEST, ULTIMATELY LONGEST-LASTING PRODUCT WE CAN. WE MELT DOWN THE METAL, REUSE PARTS. WE REALLY INVESTED IN CREATING A LIFE CYCLE WITH OUR PRODUCT. IT’S PART OF WHY WE HAVE OUR LIME GREEN INITIATIVE. FOR INSTANCE IN BERLIN WE PICK UP AND DO A NUMBER OF THINGS WITH GREEN METHODOLOGIES. HAVE E-BIKES WITH TRAILERS THAT ARE COLLECTING THESE THINGS. TRY AND LOOK AT THE ENTIRE LIFE CYCLE AND MAKE OURSELVES AS GREEN AS POSSIBLE. >>YOU SAY THE BEST AND SAFEST SCOOTERS?>>WE PUT 3.0 VERSION OUT WHICH IS THE MOST DURABLE, ACTUALLY CUSTOMIZED FOR THE SPACE, DEALS WITH OTHER ISSUES MANY OF THE OTHER PROVIDERS HAVE HAD, AND WE’RE TRANSPARENT ABOUT SAYING, WHEN THERE WERE ISSUES ABOUT OTHER PROVIDERS WE GAVE A NOTICE OF. WE TOLD ALL OF OUR USERS, WE COLLECTED ALL OF THE SCOOTERS, WE CREATED AN ALGORITHM ON TOP OF WHAT THE OTHER MANUFACTURERS HAD CREATED TO FURTHER JUSTIFY AND FIGURE OUT WHAT WAS THE ISSUE, AND WE ONLY PUT OUT THOSE THAT PASSED AN ALGORITHM AND CHANGED THE WAY WE’RE CHARGING. >>FOR THOSE IN THE ROOM YOU HAD TO RECALL SOME SCOOTERS?>>YES. >>HOW MANY SCOOTERS DID YOU HAVE TO RECALL?>>I DON’T HAVE A NUMBER FOR YOU, UNFORTUNATELY. >>IS IT MORE LIKE 10? 1,000? 10,000?>>FOR US, WE BROUGHT MOST OF OUR SCOOTERS BACK IN TO DO TESTING. IT’S MORE A QUESTION OF HOW MANY WE PUT BACK OUT. THERE WAS DEFINITELY SOMETHING THAT WE PUT OUT MANY OF OUR SCOOTERS AFTERWARDS BECAUSE THEY DID MEET THE TESTING.>>DO YOU PLAN TO USE TECHNOLOGY TO MAKE SURE THAT PEOPLE POWER THE SCOOTERS ON THE SIDEWALK, WHERE WE’RE NOT BLOCKING THE WAY THEY’RE USING THE SCOOTERS PROPERLY?>>GREAT NOTE. ULTIMATELY THE SPACE IS SO NASCENT THAT THE TECHNOLOGY IS JUST CATCHING UP TO THE POTENTIAL OF THE PRODUCT MARKET FIT. AND I THINK ONE OF THE REASONS THAT YOU’RE GOING TO SEE THIS SPACE CONTINUE TO GET MORE AND MORE POTENT OVER TIME IS THAT THE ABILITY TO USE TECHNOLOGY AROUND 3D IMAGING AND OTHER THINGS TO FIGURE OUT SIDEWALK PROTECTION, ALL JUST THE BEGINNING OF A SPACE THAT COULD REALLY TRANSFORM THE WAY THAT CITIES CAN RECEIVE THIS AS WORKING HAND IN HAND TO CONTINUALLY IMPROVE THE SYSTEM. >>SO YOU THINK GPS IS TOO LIMITED FOR WHAT YOU WANT TO DO WITH THIS?>>GPS IS GREAT, OBVIOUSLY IT’S BEEN THE BEGINNING ENABLED US TO DO LOTS IN THIS SPACE. BUT THERE’S SO MUCH ROOM FOR IMPROVEMENT. >>LET’S SWITCH GEARS AND TALK ABOUT STARTUPS. SORT OF IN THIS SPACE. BIKING STARTUPS. ESPECIALLY THE CHINESE GIANTS. I’M SURE YOU’VE SEEN THAT OFO HAD SOME SCALING ISSUES AND THEY HAD TO SCALE BACK. >>YES. >>ESPECIALLY IN INTERNATIONAL CITIES. AND THEY HAD TO, YOU KNOW, PAUSE FOR A MINUTE AND SAY, MAYBE WE SHOULDN’T LAUNCH SO MANY CITIES AT ONCE. WHAT ARE YOU LEARNING FROM THAT?>>I THINK IT’S ABOUT THE APPROACH. FROM DAY ONE, WE TALK TO CITIES, FIGURE OUT HOW TO GO FROM PILOTS AND SCALE INTO A CITY. WE DON’T NECESSARILY JUST PLACE BIKES AND HOPE FOR THE BEST. HAVING A MULTI-MODAL FLEET MEANS YOU CAN CUSTOMIZE WHAT’S NEEDED FOR DIFFERENT ENVIRONMENTS. SOMETIMES A PEDAL BIKE IS NOT WHAT YOU NEED. ALLOWING US TO CREATE A CUSTOMIZED PROGRAM, SKALG IT OVER TIME, USING DATA, HAVING DATA BE SOMETHING WHERE WE TALK TO A CITY, WE’RE SEEING THIS USAGE ON OUR VEHICLES, THEREFORE WE WANT TO CONTINUE TO SCALE UP THE VEHICLES. >>EVEN AFTER RAISING $457 MILLION, YOU’RE NOT THINKING, OKAY, LET’S BUY 10 MILLION SCOOTERS AND BIKES AND PUT THEM ALL ON THE ROAD AT ONCE?>>AGAIN, OUR METHODOLOGY IS WORKING SIDE BY SIDE WITH CITIES. AND THE ABILITY TO DO SO IS BASED ON SHOWING DEMAND. AND ONE OF THE INTERESTING THINGS IS THAT WHAT YOU’RE SEEING NOW IS THAT CITIES HAVE LONG WANTED TO SUPPORT ALTERNATIVE MOBILITY LANES AND REALLY CREATE AN URBAN INTRA STRUCTURE BUT A CHICKEN AND EGG PROBLEM. THEY HAVEN’T BEEN ABLE TO SHOW DEMAND BECAUSE THEY DON’T HAVE A SUPPLY. WE BRING THE SUPPLY, CREATE MORE INFRAS INFRASTRUCTURE, CITIES WILL ENCOURAGE TO SEE MORE AND MORE OF THESE TYPES OF COMPANIES BEING ABLE TO SERVE THEIR CITIZENS. >>I FIND IT INTERESTING THAT IN CHINA, A LOT OF BIKE STARTUPS TOOK OFF AND THERE ARE MULTIPLE SCOOTER STARTUPS IN THE U.S. WHY DO YOU THINK THERE’S THIS CULTURAL DIFFERENCE BETWEEN CHINA AND THE U.S.?>>IT’S INTERESTING. I THINK FIRST AND FOREMOST, BIKE CULTURE HAS NEVER LEFT CHINA. THE U.S. IS TRYING TO FIGURE OUT WHAT IS THIS NEW CULTURE OF MOBILITY, GOING BEYOND THE CAR. I THINK THE REALITY IS THE E-BIKE AND THE ELECTRIC SCOOTER, NOW ELECTRIC CAR, REALLY CREATES A FIRST VERSION OF THAT TRANSFORMATION IN A WAY THAT A WESTERN AUDIENCE CAN UNDERSTAND, FEEL COMFORTABLE, REALLY MEETS THEIR NEEDS. >>A COUPLE OF WEEKS AGO THERE WAS AN ARTICLE IN “THE NEW YORK TIMES” SAYING THAT FACEBOOK HIRED A PR FIRM CALLED DEFINERS. IT’S AN OPPOSITION RESEARCH FIRM. AND THEY ATTACKED GEORGE SOROS USING ANTI-SEMITIC COMMENTS. >>YEAH, FIRST OFF, WE DO NOT SUPPORT THAT. WE DO NOT BELIEVE THAT THIS IS A SPACE THAT SHOULD BE USED FOR ANYTHING PUT ENABLING AND EMPOWERING. WE USE THEM TO WORK ON OUR LIME GREEN AND CARBON FREE PROGRAMS. AS SOON AS WE UNDERSTOOD THEY WERE DOING SOME OF THESE THINGS, WE STARTED WAYS AND FINISHED OUR PROGRAM WITH THEM. >>NOW YOU ADMIT THAT YOU WERE WORKING WITH DEFINERS?>>YEAH, WE DID WORK WITH THEM. BUT WE’RE ULTIMATELY NOT WORKING WITH THEM.>>OKAY. BECAUSE WHEN WE REACHED OUT, YOU WOULDN’T COMMENT ON THE ISSUE A COUPLE OF WEEKS AGO. BUT WHY DID YOU HIRE THEM, KNOWING THAT THEY WOULD SEND SORT OF NASTY –>>AGAIN, WE DIDN’T KNOW THAT, AND WE WERE USING THEM TO RESEARCH OUR CARBON FREE PROGRAM, UNDERSTANDING WHAT WERE THE LEVERAGES OF OPPORTUNITY TO CREATE MESSAGING, AND DO OUR OWN RESEARCH. UNDERSTANDING LIFE CYCLE, ALL THE PIECES IN A VERY COMPLEX BUSINESS. AS SOON AS WE FOUND OUT THERE WERE PRACTICES THAT WERE NOT BENEFICIAL AND ULTIMATELY NOT CREATING A GOOD IMHANDLING FOR EITHER COMPANIES IN THE INDUSTRY, THEY WERE ALSO RECOMMENDED BY TOP PROVIDERS ALL THE WAY AROUND. AS SOON AS WE LEARNED DIFFERENTLY, WE DECIDED TO MOVE ON. >>LET’S TAKE A SPECIFIC EXAMPLE. WE AT THE CRUNCH SEARCHED 30 OUR INBOXES AND FOUND AN E-MAIL FROM DEFINERS ATTACKING BYRD, YOUR COMPETITOR. WE WROTE SOMETHING ON BYRD. IT WAS A SORT OF CHIRPY E-MAIL SAYING, HEY, FYI, YOU WROTE ABOUT BYRD, BUT I THINK THE NUMBERS ARE NOT AS BIG AS YOU REPORTED IN YOUR ARTICLE. THIS ISN’T ABOUT GOING TO A CAR-FREE SOCIETY. IT’S ABOUT CRUSHING COMPETITORS.>>I DIDN’T KNOW ANYTHING ABOUT THAT, HONESTLY. THE WAY WE’VE ENGAGED THEM WHAT WE’VE DONE, PART OF WHY WE DON’T WORK WITH THEM. >>YOU WEREN’T AWARE OF THIS E-MAIL, THIS KIND OF CAMPAIGN?>>NO. >>AREN’T YOU SUPPOSED TO KNOW WHO YOU’RE WORKING WITH?>>YEAH, OF COURSE WE KNOW WHO WE’RE WORKING WITH. AS TO KNOWING EXACTLY THE TACTICS, I DON’T KNOW YOUR TACTICS AND I’M HERE TALKING TO YOU. >>KNOWING ALL OF THIS NOW, DO YOU PLAN TO KEEP WORKING WITH DEFINERS IN THE FUTURE?>>WE’RE NOT WORKING WITH THEM.>>OKAY. SO YOU STOPPED THE RELATIONSHIP ALTOGETHER, ALL RIGHT. LET’S SWITCH GEARS AND TALK ABOUT –>>WE’RE NOT SWITCHING GEARS. WE’RE UPLEVELING, DOWNLEVELING –>>YOU DON’T HAVE ANY GEAR ON THE SCOOTER. >>THAT’S WHY I SAY, I DON’T KNOW ANYMORE. >>LET’S TALK ABOUT GLOBAL EXPANSION. YOU’RE LIVE IN BERLIN, OBVIOUSLY, WITH BIKES AND SCOOTERS. >>YEAH, ELECTRIC BIKES HERE. >>FRANKFURT, PARIS, BRUSSELS, MADRID, ALL AROUND EUROPE, BASICALLY. WHAT HAS BEEN THE REACTION SO FAR IN EUROPE RIGHT HERE?>>I MEAN, NUMBERS, AGAIN, SPEAK. ULTIMATELY WE’VE SEEN SOME OF THE BEST MARKETS BETWEEN PARIS, MADRID, AND PEOPLE UNDERSTAND THIS IS A KEY ISSUE. IN MANY WAYS THE INFRASTRUCTURE NEEDS OF EUROPE ARE EVEN MORE DEFINED. THERE’S BEAUTIFUL OLD CITIES TRYING TO DEAL WITH CONGESTION ISSUES. HERE OBVIOUSLY IN GERMANY WE’RE TRYING TO GET RID OF DIESEL CARS. THESE ARE THINGS WE ULTIMATELY WANT TO WORK HAND IN HAND AND I THINK THE EUROPEAN CITIES ARE VERY PROGRESSIVE IN THEIR VIEW AND ABILITY TO CREATE A NEW FUTURE FOR THEM. >>WHEN IT COMES TO NUMBERS DO YOU THINK YOU CAN GET HIGHER NUMBERS IN EUROPE? OR DO YOU STILL SEE HIGHER NUMBERS IN THE U.S.?>>IT’S SO MARKET TO MARKET, IT’S HARD TO DO AN APPLES TO APPLES COMPARISON. I DO BELIEVE EUROPE WILL BE ONE OF THE LARGEST OPPORTUNITIES FOR OUR VEHICLES AND PROBABLY LEAD THE WAY TO TRANSFORMATION AROUND THE WORLD. >>WHAT ABOUT BERLIN, MORE SPECIFICALLY? BECAUSE WE’RE IN BEAR LINE RIGHT NOW. >>YEAH, SO MEANING WE ARE HERE, WE HAVE ELECTRIC BIKES. THE CULTURE HERE UNDERSTANDS IT. THERE’S THE INFRASTRUCTURE FOR IT. THERE’S PROTECTED LANES, A MASSIVE PART OF CREATING SAFETY, ENABLING PEOPLE TO FEEL THEY CAN ADOPT A SYSTEM LIKE THIS ONE OF THE REASONS WE WANTED TO FIND CITIES THAT CAN CREATE THAT, ALLOW US TO PUT THAT IN OTHER CITIES AS WELL. >>YOU’RE ROLLING OUT NEW CITIES, SOMETIMES WITH BIKES, SOMETIMES WITH SCOOTERS, SOMETIMES BOTH. THE COMPANY WAS FIRST CALLED LANE BIKE. WHAT’S THE BREAKDOWN RIGHT NOW BETWEEN BIKES AND SCOOTERS?>>WE WANT TO BE MULTI MODAL. CITIES UNDERSTOOD THE BIKE WORLD AND WERE MORE OPEN TO THAT. WE’VE BEEN COLLABORATIVE FROM DAY ONE. WE WANT TO START WITH PROGRAMS THAT WOULD ALLOW TO US INCREASE AND DIVERSIFY OVER TIME. IN TERMS OF THE BREAKDOWN, I DON’T HAVE A BREAKDOWN I CAN SHARE, BUT ULTIMATELY EVERY MARKET IS DIFFERENT. DEPENDS ON TOPOGRAPHY, DEPENDS ON WHAT THE USE CASES ARE, AND THAT CHANGED THE TYPE OF FLEET WE’RE GOING TO DEPLOY. >>YOU’RE NOT GOING TO PRIORITIZE SCOOTERS OVER BIKES?>>ELECTRIC BIKES ARE FOR LONGER DISTANCES, HILLS. DEPENDS ON WHAT YOU’RE TRYING TO DO. WE SEE HAVING DIFFERENT VEHICLES ENABLING PEOPLE TO SAY, I NEED TO GET AROUND MY CITY. I THINK ABOUT WHAT’S THE BEST VEHICLE AND HOPEFULLY WE CAN ALWAYS BE A SOLUTION FOR YOU.>>LET’S TALK ABOUT ONE OF YOUR FAVORITE PARTNERS, UBER. THEY INVESTED IN LIME BACK IN MAY OR JUNE OF LAST YEAR — OF THIS YEAR. AND NOW USERS CAN UNLOCK SCOOTERS FROM THE UBER APP, AT LEAST IN SOME CITIES. HOW IS THE RELATIONSHIP WITH UBER RIGHT NOW?>>I MEAN, WE’RE OBVIOUSLY INDEPENDENT. THEY’RE A MINOR INVESTOR IN US. I BELIEVE THEY SAW US AS HAVING BUILT A STRONG CITY-FIRST COLLABORATIVE RELATIONSHIP AND THAT’S ONE OF THE THINGS THEY’RE TRYING TO DO. THEY CAN OFFER CITIES GLOBALLY AS A SERVICE PLATFORM. >>WOULD YOU CALL THEM AN INVESTOR, A PARTNER, OR BOTH?>>I MEAN, THEY’RE OBVIOUSLY BOTH. WE ARE WORKING WITH THEM IN TERMS OF ENABLING US TO BE FOUND IN CERTAIN CITIES. THEY ARE A MINOR INVESTOR. OBVIOUSLY WE HAVE OUR OWN TRAJECTORIES, OPERATE IN SEPARATE COMPANIES. ULTIMATELY CREATING A FUTURE WHICH IS ELECTRIC AND FOCUSED ON THAT, AND WE BELIEVE IN SOME CASES RIDESHARE HASN’T CREATED A TRANSFORMATION OF LESS VEHICLES ON THE ROAD AND WE NEED TO GET RID OF THOSE. >>WHAT DO YOU THINK ABOUT THE CURRENT STRATEGY OF MOVING AWAY FROM JUST CARS AND RIDE HAILING TO BECOME SORT OF AN APP FOR ALL SORTS OF TRANSPORTATION?>>I THINK THE REALITY IS THAT WE WANT TO SEE CITIES TRANSFORM. WE WELCOME ANYONE WHO WANTS TO FIND A WAY TO HELP US DO THAT ALONGSIDE OF US. THAT’S PART OF WHY WE’RE MORE A PARTNER-BASED COMPANY, ABOUT LONG-TERM RELATIONSHIPS AND COLLABORATING THAN TRYING TO CREATE ENEMIES BETWEEN PEOPLE. >>LYFT OR MAYBE A LOCAL COMPETITOR LIKE A TAXI MIGHT APPROACH YOU?>>WE WELCOME THE CONVERSATION. >>WE WANT TO HAVE LIME SCOOTERS AND YOU WOULD DO IT?>>ALWAYS OPEN TO THE CONVERSATION. >>UBER ALSO ACQUIRED JUMP. AND THEY’RE GOING TO ROLL OUT SORT OF UBER BIKES AND SCOOTERS IN SOME CITIES. DO YOU THINK IT’S A THREAT FOR YOU?>>NO, AGAIN, WE WELCOME IT. ULTIMATELY THIS IS PROVING THE VIABILITY OF THE SPACE, ENABLING THE TRANSFORMATION. THE FACT THAT GLOBALLY WE HAVE LESS THAN 5% TO 10% WHAT IS ALTERNATIVE MOBILITY IN TERMS OF THE NUMBER OF TRIPS THAT ARE HAPPENING IN COMMUTING, GETTING AROUND A CITY EVERY DAY, THAT’S THE THING WE NEED TO DO, ADDRESS AND REALLY CHANGE THE BEHAVIOR. IF MULTIPLE COMPANIES ARE ENABLING THAT, THEN WE’RE ALL FOR IT.>>AND THE FACT THAT YOU PARTNERED WITH UBER, ISN’T IT A WAY TO SEE IF IT’S WORKING AND TO ACQUIRE YOU DOWN THE ROAD, MAYBE NEXT YEAR OR SOMETHING LIKE THAT?>>I THINK UBER HAS ITS OWN COMPETENCES IT NEEDS TO DEVELOP. ACKNOWLEDGING OUR COMPETENCES, BUILDING A PLATFORM, FAST EXECUTION, GLOBALLY, FASTER THAN ANYBODY ELSE, IT’S OUR ABILITY TO LEVERAGE BOTH SIDES OF THE PARTNERSHIP TO CITIES TO SAY, WE CAN OFFER A FULL RANGE OF DIFFERENT WAYS FOR YOU TO CHANGE THE WAY PEOPLE GET AROUND IN YOUR CITY. >>LET’S TALK ABOUT THE BUSINESS MODEL NOW.>>SWITCH GEARS. >>I GUESS WE CAN, GOING TO ANOTHER TOPIC. THE BUSINESS MODEL. AS YOU KNOW, SOME COMPANIES HAVE BOUGHT A TON OF BIKES, LIKE OFFROAD AND MOBILE-BIKE. EVEN NOW IT DOESN’T SEEM LIKE THEY FOUND A BUSINESS MODEL THAT ACTUALLY WORKS. WOULD YOU SAY THAT LIME’S BUSINESS MODEL RIGHT NOW WORKS?>>I MEAN, WE HAVE MARKETS WHERE WE’VE ALREADY PROVEN OURSELVES TO BE MARGIN-POSITIVE. WE KNOW THE BUSINESS WORKS. ULTIMATELY IT’S ABOUT BEHAVIOR CHANGE. THE MORE WE SEE PEOPLE USING AND SORT OF CREATING THE OPPORTUNITY TO REALLY INTEGRATE THIS IN THEIR LIVES, THE MORE SUCCESSFUL THE PROGRAM IS. >>DO YOU TRACK THE NUMBER OF RIDES PER DAY PER SCOOTER?>>YEAH, OF COURSE. ONE OF THE BENEFITS OF SORT OF THE CLARITY OF WHAT WE HAVE ON THE VEHICLE, WE’RE ALWAYS OPTIMIZING WHAT ARE HOT SPOT LOCATIONS, WHERE SHOULD THEY BEST BE PUT, OPTIMIZE FOR TIME OF DAY, SEASONALITY, ALL THE AS PECKS. >>IN A BUSY CITY, HOW MANY TIMES A DAY PEOPLE ARE GOING TO RIDE ONE SCOOTER?>>IT CAN RANGE. I CAN’T GIVE YOU AN EXACT NUMBER. MULTIPLES MORE THAN WE SEE REGULAR BIKES.>>OKAY, BECAUSE THAT’S SHORTER RIDES?>>I THINK IT’S SHORTER RIDES, ALSO THE FACT THAT YOU CAN BE IN A SUIT, IF IT’S A HOT DAY OR WHATEVER, THERE’S ABILITY FOR YOU TO USE A VEHICLE THAT’S ELECTRIC IN A WAY YOU COULDN’T OTHERWISE. A BIT OF NOVELTY, A SENSE OF ELECTRIC AND INNOVATION BEHIND IT. THERE’S A LOT OF CONTRIBUTING FACTORS THAT MEAN THAT YOU SEE PEOPLE ADOPT AND FEEL MORE LOYAL TO ELECTRIC VEHICLES THAN THEY WOULD OTHERWISE.>>AND WHEN IT COMES TO MAINTAINING THE FLEET OF VEHICLES, YOU HAVE TO WORK WITH PEOPLE SO THAT THEY WILL CHARGE THE SCOOTERS OVERNIGHT, FOR INSTANCE. HOW DOES IT AFFECT THE BOTTOM LINE? DO YOU THINK YOU CAN FIND ENOUGH PEOPLE WILLING TO DO THAT AND STILL .>>>IT OFFERS SUPPLEMENTAL INCOME THAT IS A WIN-WIN SITUATION. WE’VE BEEN ABLE TO USE THAT CREATIVELY TO SCALE UP, UNDERSTAND THEY HELP US ACTUALLY REPORT ISSUES SO WE COLLECT OUR VEHICLES FASTER SO WE HAVE THE BEST AND SAFEST QUALITY OUT THERE. SO WE’VE SEEN AS A WIN-WIN. BECAUSE IT’S SUPPLEMENTAL, IT’S NO THE A FULL TIME JOB. THEY COULD DO IT AT NIGHT OR EVENING AND MAKE EXTRA MONEY. WE CONTINUE TO BUILD A PARTNERSHIP.>>LET’S SAY YOU GROW 10 X. CAN IT SCALE AS WELL? CAN YOU FIND ENOUGH — >>WE’VE DONE IT ALREADY.>>YOU CAN PUT THE SCOOTERS ALL OVER?>>SEATTLE, FOR INSTANCE, WE STARTED WITH WHAT LESS THAN 1,000 VEHICLES. WE’RE AT 8,000 TO 10,000 VEHICLES. WE KNOW WE CAN DO THIS. THIS IS PROVEN AND CITIES BELIEVE AS THE BEST IN WORLD CLASS OPERATORS.>>SO ONE OF THE COMPETITORS, BIRD, ANNOUNCED THIS NEW MODEL WHICH IS LETTING PEOPLE ACQUIRE A FLEET OF SCOOTERS AND THEN BEING SORT OF RENTAL COMPANY FOR SCOOTERS. WHAT DO YOU THINK ABOUT THIS MODEL?>>I THINK EVERYONE IS TRYING TO FIND UNIQUE AND INTERESTING WAYS TO ADDRESS THIS BASE. AND I THINK THE REALITY IS IT IS PROBABLY AN INTERIM SOLUTION UNTIL THE CITIES ALLOWED FOR THE SATURATION. AND REALLY THAT COMES BACK TO IT. IS THIS THE SPACE AND REALLY THE TRANSFORMATION IS NOT HAVING A COUPLE HUNDRED VEHICLES IN A MARKET. YOU NEED TO SEE SORT OF AN ACTUAL COUPLE THOUSAND IN THE CITIES FOR IT TO BE UBIQUITOUS. SOMETHING CAN YOU TRUST. FINDING DIFFERENT WAYS TO CREATE THAT IS SOMETHING WE’RE LOOKING FOR. YOU ALWAYS FEEL LIKE THERE IS ONE ACCESSIBLE.>>WE HAVE TIME FOR ANOTHER QUESTION. WHERE ARE YOU TRAVELING NEXT AFTER BERLIN?>>I GET TO GO BACK TO SEATTLE. WE HAVE A RETREAT. FROM THERE, I GO TO — LET’S SEE, SAMPALO TO CHECK N I’LL GO TO CHILE WHERE WE JUST LAULAUFNCHED AND SIDNEY AND SINGAPORE. KEEPING BUSINESS. >>WHEN YOU COME TO BERLIN, DO YOU ACTUALLY USE LINE TO GO FROM ONE MEETING TO ANOTHER?>>YEAH. IT HAPPENS OUTSIDE MY HOTEL. THERE ARE TWO PARKED THERE. I DIDN’T TELL THEM TO DO THAT. I GRABBEDED IT TO GO TO THE FIR MEETING. YOU GET A READ OF HOW PEOPLE ARE ADOPTING THEM. I LOVE ASKING PEOPLE QUESTIONS AND TESTING OUR VEHICLES. MY OPERATION TEAM ALWAYS KNOWS WHEN I’M IN TOWN. THERE’S AN ISSUE HERE OR HERE. GOOD JOB. GET THIS REPLACED THERE. I’M ALWAYS TRYING TO ADD INTELLIGENCE AT THE SAME TIME USE OUR PRODUCT.>>THANK YOU VERY MUCH.>>THANK YOU. APPRECIATE IT.>>ALL RIGHT. IT’S LUNCH TIME. THERE ARE FOOD TRUCKS THAT WAY. PLEASE BE BACK AT 1:05. WE HAVE GRATE SHOW IN STORE FOR YOU THIS AFTERNOON. THANKS.>>>THE PRO 2 IS THE NEXT IT RAGS IT RAGS OF OUR CAMERA SERIES. WE DELIVERED ON. IT IT’S IMPORTANT TO TAKE THE FEEDBACK AND REALLY GIVE THEM A SOLUTION THAT’S GOING TO BE EASY TO USE ON THE CAPTURE SIDE AND ON THE POST SIDE. OUR BIGGEST CHALLENGE UNTIL THIS POINT HAS BEEN HOW DO WE CREATE A SUPER SMOOTH AND SEAMLESS WORK FLOW THAT WILL MAKE USERS HAPPY AND THEY DON’T HAVE TO PULL THEIR HAIR OUT AND WAIST TIME WITH THE STITCHING AND POST PROCESSING. SO WE REALLY HAVE TO FIND THAT BALANCE BETWEEN ADDING NEW FEATURES AND STILL MAKING IT A SIMPLE PROCESS. WE’VE UPGRAUDEDED THE SENSORS A MOTHER BOARD TO ALLOW FOR 8 K STEREO. AND WE UPPED A LOT OF THE OTHER RESOLUTIONS WHERE YOU’RE ABLE TO RECORD HIGHER RESOLUTION AT HIGHER FRAME RATES AND MAKING IT MORE IN LINE WITH THE EXPECTATIONS FROM A TRADITIONAL FILM MAKING STAND POINT. THE DUEL ANTENNAS POP-UP FROM THE TOP. AND THOSE ARE TO ENHANCE THE GPS AND THE WI FI. AND YOU’LL SEE THAT YOU CAN NOW RECORD TO SIX MICRO SD CARDS. THE REASON WE SHIFTED TO THE SIX MICRO SD CARD OPTION IS TO ALLOW UP TO 120 MEGA BITS PER SECOND ON EACH CARD. SO THE BIT RATE IS MUCH HIGHER THAN RECORDING ON TO ONE SD CARD. NOW IT HAS THE ABILITY TO STABILIZE THE CAMERA. WE UPGRADED IT TO A NINE AXIS GYRO AND WE ALSO RETHOUGHT AND REDONE OUR ALGORITHM ON THE DIGITAL STABILIZATION SIDE. SO NOW IT’S GOING FROM JUST CAT CATERING STRICTLY VR AUDIENCE TO FILMMAKERS THAT WANT TO ENHANCE THEIR TOOL BELT. WE’LL BE PAIRING THE PRO TWO WITH THE SYSTEM. IT IS THE LONG WIRELESS TRANSMITTER BUILT FOR A 360 CAMERA. THE FAR SIGHT WILL BE AVAILABLE ON ITS OWN AND TOGETHER BOTH SYSTEMS ARE ABOUT $1,000.>>>SO THIS GLORIOUS BEAST YOU SEE BEFORE YOU IS THE TREK SUPER COMMUTER PLUS SEVEN. IT’S AN ELECTRIC BIKE WITH PEDAL ASSIST. BUT IT MAXES OUT AT 20. SO IT CAN STILL STAY IN THE RANGE OF AN ELECTRIC BIKE. MY FAVORITE PART IT IS LOOKS LIKE A, I DON’T KNOW, AN URBAN ASSAULT BIKE. TAKE A CLOSER LOOK. I REALLY LIKE HOW THIS BIKE IS PUT TOGETHER AND LIKE THE REPLACABLE BATTERY. THAT IS MASSIVELY IMPORTANT FOR A BIKE LIKE THIS. YOU CAN’T SWAP OUT THE BATTERY IF YOU’RE AT WORK. IT TAKES AN HOUR OR TWO TO RE REALLY CHARGE UP. YOU HAVE THE MASSIVE TIRES. SHIFTERS ON THE FRONT. YOU ALSO HAVE A HG 500 TEN SPEED CASSETTE ON THE BACK. SO THERE IS NO THROTTLE ON THIS THING. SO IT ACTUALLY ASSISTS YOU AS YOU PEDAL AND GO FROM ECO WHICH IS A LITTLE SLOWER, BIFZGIVES Y BOOST AND TOURING AND SPORT MAKES YOU GO FASTER AND TURBO WHICH MAKES YOU GO REALLY FAST. IT’S A LITTLE EXPENSIVE FOR WHAT IT IS. YOU CAN PROBABLY HAVE SOMEBODY PUSH YOU AROUND TOWN FOR THE SAME AMOUNT THAT YOU WOULD PAY FOR THIS THING, $3700. BUT IF YOU’RE INTO BIKE COMMUTING AND YOU HAVE A LONG COMMUTE, THIS IS THE WAY TO GO.>>WE’RE GOING TO CHAT WITH A GROUP OF START-UP EMPLOYEES THAT ARE BUILDING AUTONOMOUS DRONES. WE’RE GOING TO CHAT WITH THE CEO AND SEE WHAT THEY’RE UP TO. LET’S CHECK THEM OUT.>>I’M SEEING A LOT OF PROTOTYPES BEHIND THIS. YOU WANT TO GIVE IT A LONG OVERVIEW STRETCHING THROUGH THE PROCESS OF, YOU KNOW, WHERE THIS IDEA STARTED TRANSLATING INTO YOUR NEW PRODUCT.>>FOR ALMOST THE FIRST YEAR OF THE COMPANY, IT WAS JUST LIKE THREE CO-FOUNDERS WORKING IN A BASEMENT. SO THE PROTOTYPING AT THAT STAGE WAS VERY, VERY SCRAPPY. SO WE STARTED WITH JUST OFF THE SHELF HELICOPTER FRAMES AND PUTTING MEDIA CENTER COMPUTERS AND USB CAMERAS ON THEM. AND ESSENTIALLY STARTING THE CORE OF OUR SOFTWARE SYSTEM. AND THERE’S BEEN A PRETTY STEADY EVOLUTION SINCE THEN TO GET TO R 1. SO WE BUILT MORE SOPHISTICATED RIGS THAT LET US HAVE MULTIPLE CAMERAS AND DEVELOP MORE OF THE SOFTWARE. THEN WHEN WE HAD KIND OF ANSWERED ENOUGH OF THE QUESTIONS ABOUT WHAT IS POSSIBLE, WHAT WE REALLY WANTED THE PRODUCT TO BE, WE STARTED DEVELOPING THE CUSTOM PLATFORM. THE BASIC IDEA THERE HAS BEEN CONSTANT FROM THE BEGINNING. BUT WE’VE BEEN THROUGH A NUMBER OF IT RERATIONS.>>WE STARTED THE FIRST PROTOTYPE APTLY NAUMD MED USING MEDIA CENTER COMPUTER. IT IS NOT EFFICIENT, NOT AT ALL DESIGNED FOR THIS. CAMERAS ARE PLUGGED IN OVER USB. THERE IS A LOT THAT WAS NOT GREAT ABOUT THIS. IT ALLOWED US TO GET SOMETHING IN THE AIR AND START DEVELOPING THE SOFTWARE SYSTEM. THEY ANNOUNCED THE MODULES THAT HAVE REALLY POWERFUL GPUs. THAT’S WHAT WE STARTED USING. SO WE DID THE SORT OF OFF THE SHELF COMPUTER THING FOR A LITTLE WHILE AND THEN STARTED WORKING ON NVIDIA.>>WHAT IS UP WITH THIS MONSTER?>>THIS IS A TEAM FAVORITE.>>THIS IS PRETTIEST OF THE BUNCH.>>THIS THE TRIANGLE RIG. THIS IS WHEN WE HAD HAD A ONE PROTOTYPE ENGINEER THAT IS AWESOME. HE DESIGNED THIS KIND OF SUPER STRUCTURE. BUT IT’S STILL FAIRLY CLUFRPGY. THIS IS THE FIRST THING WE BUILT THAT HAD MULTIPLE CAMERAS FACING IN EVERY DIRECTION. IT’S NOT EXACTLY THE FINAL THING BUT THIS IS CLOSE. ALL THE BIG IDEAS WERE IN PLAY AND THIS IS ALL OUR FINAL CUSTOM ELECTRONICS.>>SIX PAIRS OF CAMERA PRETTY MUCH LIKE THAT WAS AT LEAST WHAT YOU HAD TO IT IS FOR THE MOST PART IN YOUR MIND FROM THE BEGINNING?>>YEAH. THAT WAS A FAIRLY EARLY DESIGN DECISION. WE WANTED — THE KEY THING WE HAD IN MIND FOR EVERY PRODUCT DECISION IS TRUSTWORTHY AWE SON MY. WE WANT YOU TO BE ABLE TO TRUST THE DEVICE TO FLY ITSELF WITHOUT YOU NEEDING TO PAY TOO MUCH ATTENTION TO IT. WE THOUGHT ONE OF THE REAL KEYS, ONE OF THE REAL BUILDING BLOCKS IS HAVING STEREO PAIRS LOOKING IN EVERY DIRECTION WHICH HAS A BUNCH OF OTHER CHALLENGES ASSOCIATED WITH IT. THAT’S ONE OF THE REASONS WHY WE DEVELOPED THIS PERIMETER STRUCTURE OUT OF COMPOSITES TO HOLD ALL THE CAMERAS AND CONFIGURATION THAT WE NEEDED.>>OKAY.>>AND BE SUPER RIDGE IT.>>YEAH. I WAS CURIOUS ABOUT THAT. WAS IT A DECISION FROM THE BEGINNING TO MAKE THE WINGS FOLD? I KNOW THERE IS SOME DRONES THAT HAVE A SIMILAR FORM FACTOR THAT FOLD UP.>>YEAH. IT IS SOMETHING WE EXPLORED. WE THOUGHT THIS WAS GOING TO BE LIKE A SUPERIOR PRODUCT EXPERIENCE. IT STILL FITS INTO YOUR BACKPACK. IT DOESN’T HAVE THE ADDED WEIGHT FOR FOLDING ESPECIALLY WITH THE CAMERAS OUTSIDE. IT JUST WOULDN’T SOLVE. SO, YOU KNOW, AROUND THE LAUNCH, PEOPLE WERE TALKING ABOUT THE CAMERAS AND WILL SELFIE CAM. FOR A $2500 PRODUCT, YOU KNOW, I THINK YOU CAN SEE A LOT MORE POTENTIAL IN WHAT THE ONE LINER ABOUT IT COULD BE. AS YOU KIND OF LOOK TO THE FUTURE, ARE YOU A SELFIE CAM COMPANY?>>WE HAVE A MIXED RELATIONSHIP ABOUT SELFIE. IF YOU THINK ABOUT CAMERAS IN GENERAL, FIRST OF ALL, THEY’RE EVERYWHERE IN OUR LIVES. EVERY SMART PHONE HAS ONE. EVERY SMART PHONE HAS AT LEAST TWO NOW. SMCH SOME HAVE MORE. THE MAJOR USE FOR PHONES IS TAKING PICTURES. SOCIAL MEDIA IS BY PEOPLE SHARING PICTURES AND VIDEO. CAMERAS, PICTURES, VIDEO ARE JUST LIKE A CORE PART OF OUR EXISTENCE NOW AND IT’S BECOMING MORE CENTRAL. IF YOU THINK ABOUT WHAT ARE PEOPLE TAKING PICTURES OF, MOST VIDEO GETS TAKEN OF PEOPLE. PEOPLE ARE THE MOST INTERESTING SUBJECTS.>>YEAH.>>CALL IT WHATEVER YOU WANT REALLY. BUT WE THINK OF THIS AS JUST LIKE ANOTHER SORT OF EVOLUTION OF THE CAMERA. IT’S A CAMERA THAT UNDERSTAND US AND LOOKS AT AND HAS THE ABILITY TO MOVE ITSELF. AND OUR FIRST USE CASE IS TARGETED AROUND CAPTURING AMAZING CONTENT OF PEOPLE DOING COOL STUFF THAT YOU WOULD OTHERWISE NOT BE ABLE TO GET. WHEN PEOPLE TAKE PICTURE NOW, THEY’RE NOT DOING ANYTHING INTERESTING.>>THEIR BUDDY IS HOLDING THE CAMERA. THIS THING ALLOWS YOU TO, LIKE, CAPTURE THE STUFF THAT YOU’RE MOST EXCITED ABOUT WITHOUT HAVING TO THINK OR WORRY ABOUT IT. IT’S HARD TO SAY WHAT THE CATEGORY IS GOING TO BE CALL IN THE LONG TERM. WE THINK IT’S A REAL THING AND GOING TO BE PRETTY BIG. AND THE KIPD OF CONSUMER MARKET QUESTIONS. THAT’S NOT A DRILL. THAT’S A PROTOTYPE. R-1 IS STRAPPED DOWN.>>R-1 WITH THE HAIL FIRE INTEGRATION.>>A LOT OF THESE THINGS LOOK LIKE FROM TORTURE CHAMBERS. WE HAVE A THING STRAPPED DOWN.>>GOT IT. GOT TO DO THAT TESTING.>>WE’RE HERE AT CREATOR, A NEW RESTAURANT WITH THE FOUNDER ALEX WHO INVENTED THIS CRAZY MACHINE WE’RE STANDING IN FRONT OF. HOW DID YOU GET INTO THE IDEA OF BUILDING THIS?>>MY PARENTS HAVE A RESTAURANT. I MADE TENS OF THOUSANDS OF HAMBURGERS IN MY LIFE. WHEN YOUR JOB IS TO MAKE SOMETHING 400 OF THE SAME HAMBURGER, YOU REALIZE THERE ARE A LOT OF OPPORTUNITIES TO MAKE IT BETTER EXCEPT DIDN’T HAVE THE MEANS. I THOUGHT KITCHEN TOOLS HELP ME MAKE A BETTER PRODUCT, TAKE THAT TO INFINITY. THIS IS THE ULTIMATE KITCHEN INSTRUMENT. THEY COME THROUGH. YOU HAVE A LOT OF ADVANTAGE ON THE TEXTURE.>>THE BURGERS ARE TASTY. I’M SURPRISED THEY ONLY COST $6. WHAT IS THIS GOING TO DO FOR THE FUTURE OF WORK AND THE P THAEM WORK IN THE RESTAURANTS? SFWL . >>I GREW UP MAKING BURGERS. THAT TYPE OF JOB IS CLOSE TO MY HEART F I’M IN A POSITION WHERE MY JOB IS TO DO SOMETHING REPETTIVE ALL DAY, HOW CAN I MAKE A PLACE OF WORK SOMETHING I CAN MOVE FROM THAT AND DO SOMETHING MORE CREATIVE OR SOCIAL? SO THIS PLACE HAS A DECENT SIZE STAFF, ACTUALLY. WE’RE PAYING EVERYONE $16 AN HOUR. ON TOP OF THAT, WE’RE ABLE TO GIVE PEOPLE A 5% TIME MEANING, 5% OF THE TIME ON THE CLOCK IS SPENDING THAT READING A BOOK OR DOING SOMETHING THAT WILL BENEFIT THEM IN THE LONG RUN AS OPPOSED TO DOING THIS ALL DAY. I THINK WHAT WE’RE GOING TO SEE IS ENHANCEMENT IN TERMS OF OUR COLLECTIVE SKILL SET MOVING INTO THINGS THAT ARE MORE FULFILLING.>>IF YOU WANT TO TRY THIS NEW BURGER COME OUT HERE. HOPEFULLY WE’LL SEE MORE CREATOR RESTAURANTS OR THE FULL SIZE VERSION LIKE THIS AREN’T COUNTRY SOON.>>SHE IS JUST MELTED RIGHT IN. EAT BURGER ALWAYS DAY LONG. ARE YOU SICK OF BURGERS YET?>>PINK DESIGN HAS AN INTERESTING STORY INVOLVING KICK STARTER. HOW DID YOU START ALL THIS?>>I DIDN’T START — I GUESS IT DID BY RESULT START ALL THIS. I JUST WANTED TO MAKE A THING WHICH IS THE CAPTURE CAMERA CLIP. IT WAS A SMALL DEVICE THAT WOULD LET YOU TAKE A CAM RASHGS SLR, ATTACH IT TO BAKE PACK STROP OR BELT OR SOMETHING LIKE THAT. IT WAS A COOL IDEA I HAD. I THOUGHT I COULD GET PEOPLE TO BUY IT.>>YOU GOT THAT FUNDED ON KICK STARTER. THEN A COUPLE MORE DIFFERENT PRODUCTS ON KICK STARTER AND THEN EVENTUALLY THE BAG SFWLCHLT Y — BAG.>>YEAH. IT WAS THE FIRST PRODUCT CAPTURE WAS A HIT. IT WAS THE SECOND MOST FUNDED PROJECT OF ALL TIME. PROFITABLE YEAR ONE. AND SO I WAS ABLE TO HIRE SOME PEOPLE. ONCE YOU DIDN’T HAVE A CAMERA ON A STRAP, IT WAS DANGEROUS TO HANG IT OUT THERE. WE INVENTED A WAY OF ATTACHING AND REMOVING STRAPS. THAT WAS THE MAIN PAYING POINT THERE. WE WENT BACK TO CLIPS AGAIN. WE DID CLIPS V-2 AND THEN STRAPS V-2. FOUR YEARS IN WE HAVE A GOOD FOLLOWING. AND FAMOUS PHOTOGRAPHER NAMED TREY RADCLIFF SAID I WANT TO MAKE BAG FOR YOU. THAT OPENS THE DOOR TO BAGS. FORTUNATELY OUR LEAD DESIGNER IS MAGICAL, INCREDIBLE, LITERALLY ONE OF THE BEST BAG DESIGNERS. SO WE WERE OFF THE RACES TO THE BAGS AND WE’RE FOUR YEARS IN AND LOVE THEM.>>TELL ME ABOUT THE DESIGN PROCESS.>>AT PEAK DESIGNS, WE’RE REALLY THINK OF OURSELVES AS A DESIGN STUDIO FIRST. BAGS ARE A LARGE PART OFF YOU ARE BUSINESS. WE TAKE A GROUND UP APPROACH JUST LIKE WE WOULD IF WE WERE DESIGNING ANY OTHER PRODUCT. THAT STARTS FIRST AND FOREMOST WITH A LOT OF RESEARCH AND SO THE NEEDS THAT WE’RE TRYING TO SOLVE WITH THE USER. AND WE GO AND WE SKETCH. WE’RE TRYING TO PULL THE SAME HARDWARE CUES THAT PEOPLE RESPONDED TO AND BRING THEM INTO THIS BACKPACK FORM.>>ONCE YOU HAVE IT DESIGNED WHAT YOU WANT TO MAKE, YOU GUYS TEST MATERIALS AND, YOU KNOW, SOWING AND THINGS HERE IN HOUSE?>>PRIMARILY, WE DO — THE DEVELOPMENT WE’RE DOING IN HOUSE HERE IS THE DEVELOPMENT OF ALL THE MATERIALS. LIKE YOU SAID, WE DO A LOT OF GROUND UP DEVELOPMENT ON OUR FABRICS. WAY HAVE A ROBUST HARD GOODS DESIGN TEAM HERE. WE HAVE THREE PRINTERS AND THE SHOP. WE’RE DOING A LOT OF WORK IN HOUSE HERE. SOWINGWISE, WE’RE SOWING ITEMS LIKE REALLY ROUGH PROTOTYPES OR WORKING THROUGH COMPLEX PROBLEMS. BUT THE MORE FINAL PRODUCTION PROTOTYPE LEVELS.>>THE FINAL, HOW IS THAT PROCESS? WHERE IS THAT PROCESS HAPPENING?>>IT STARTS WITH BASICALLY MAKING THE PROTOTYPES. YOU KEEP REVING AND REVING AND GOING THROUGH THE DIFFERENT ROUNDS AND EXPLORING DIFFERENT THINGS. YOU START TO REFINE THE GENERAL DESIGN. AND FROM THEN, IT’S KIND OF THIS SUBTLE REFINEMENT PROCESS UNTIL WE GET A GOLDEN SAMPLE. ESSENTIALLY THAT IS A MASTER SAMPLE THAT THAT’S WHAT WE’RE GOING GO TO MARKET WITH. GO TO PRODUCTION WITH. THIS IS AN ODD WAY OF APPROACHING THINGS. WE’RE NOT LOOKING AT THE MARKET AND SAYING WHAT DOES THE WORLD WANT? IT’S KIND OF LIKE WHAT DO WE WANT? WE’RE HOPEFUL THAT ENOUGH PEOPLE WILL CONTINUE TO HAVE THE SAME SET OF PROBLEMS, NEEDS, AND WANTS THAT WE DO. CERTAINLY IT WILL REMAIN FOCUS ON CAMERA GEAR A COMMON THREAD IS WE LOVE PHOTOGRAPHY. YOU’RE GOING TO SEE CORE ELEMENTS OF ANY PHOTOGRAPHER SETUP. WE’RE NOT MAKING CAMERAS BUT WE’RE MAKING THE ACCESSORIES. IF YOU CAN THINK ABOUT WHAT MAY BE MOST IMPORTANT ACCESSORY TO CAMERA USERS, WE’RE HEADING THAT DIRECTION. AND WE’RE ALSO VERY AWARE OF THE FACT THAT THE CAMERA THAT’S INSIDE YOUR POCKET WHICH IS iPHONE OR GALAXY OR A PIXEL IS A PRETTY DA MANY. N GOOD CAMERA TOO. THAT HASN’T SLIPPED OUR NOTICE.>>EXPECTING A CAMERA CASE?>>MAYBE.>>TELL ME ABOUT YOUR LATEST BABY.>>THIS IS THE 30 LITRE BLACK BACKPACK.>>IT LOOKS SLICK.>>THIS IS POPULAR.>>THANK YOU.>>WHEN YOU PUT THINGS IN ALL BLACK, IT JUST SLICK IS WHAT COMES TO MIND. I THINK THIS IS A GREAT INTERPRETATION OF THAT. A LOT OF PEOPLE WERE GETTING THE 20 LITRE. THEY LIKED IT. SO WE WERE KIND OF — OUR HANDS WERE TIED. WE HAD TO MAKE IT IN THE THIRD VERSION FINALLY. WHEN YOU GET INTO THE PACK AND LOOK AT THE FEATURES, IT FEELS LIKE THE RIGHT PRICE YOU ONCE YOU GET INTO IT. AND THAT IS THE RESOUNDING OPINION OF EVERYONE WHO OWNS THIS PRODUCT.>>BEER BOX IS A VENDING MACHINE THAT DISPENSES AND OPENS CANS OF BEER AT EVENTS AND VENUES WE REALLY FOCUS ON ELIMINATING LONG LINES. IT’S A PAIN THAT WE ALL FELT AT THESE VENTS. WHETHER YOU GO TO A CONCERT WITH FRIENDS OR FESTIVAL, A KNICKS GAME. DO I REALLY WANT TO GET THAT DRINK? I MAY MISS THE THIRD QUARTER. I REALLY WANT THAT NEXT DRINK. SO YOU BASICALLY PICK OUT OF A HAT. OR DO ROCK PAPER SCISSOR. YOU WAIT IN LINE FOR 20 MINUTES. GET AS MANY BEERS AS CAN YOU. THEY WOULD LOVE TO SELL MORE AT THE END OF THE DAY. THEY’RE LIMITED WITH REAL ESTATE. THEY CAN’T BUILD MORE BARS IN THE ARENAS NOR, YOU KNOW, DO THEY NECESSARILY WANT TO HIRE MORE PEOPLE TO STAFF THAT?>>FROM A DESIGN APPROACH, WE DIDN’T WANT TO DO SNAG IS IN THE MARKET. WE MAKE A BAR OUT OF IT. WE WATCH PEOPLE HANG OUT AT THE MACHINE, THEY EAT FOOD ON TOP OF IT. THEY WELCOME TRACT, YOU KNOW, MORE CONSUMERS TO THE MACHINE. IT’S LIKE A MAGNET. PEOPLE ARE LIKE WHAT ARE PEOPLE DOING OVER THERE HANGING OUT? THE TABLE TO BE BECOMES A GREAT MARKETING CHALLENGE FOR US AS WELL.>>WE DO MICRO FULFILLMENT CENTERS, SMALLER THAN 10,000 SQUARE FEET THAT DO FULFILLMENT FOR GROCERY SPACE.>>THERE ARE A LOT OF MOVING PARTS, LITERALLY. CAN YOU TELL US A BIT ABOUT WHAT IS HAPPENING WHEN YOU ORDER SOME EGGS, FOR INSTANCE?>>SURE.>>WHAT IS IT GOING TO DO?>>YOU’RE GOING TO ORDER THE EGGS. WE’LL GET THE ORDER INTO THE FULFILLMENT CENTER AND THEN THE ORDERS IMMEDIATELY GOING TO SEND TASKS TO ROBOTS. WE HAVE MULTIPLE TYPES OF ROBOTS THAT WORK IN A MARVELOUS WAY TOGETHER. IF YOUR EGGS WERE PART OF THE 60 ITEM ORDER, THAT IS FIXED IN TEN MINUTES.>>TELL ME ABOUT THE GROUND ROBOTS. IT IS HUGE TO SEE THEM MOVING AROUND. THEY’RE SMART. HOW DO THEY KNOW WHERE THEY’RE SUPPOSED TO BE?>>THE GROUND ROBOTS ARE KIND OF STUPID AND IT’S BY DESIGN. THAT IS TRUE TO ALL OF OUR ROBOTS. THEY HAVE SENSORS. THEY KNOW TO DRIVE STRAIGHT. THEY KNOW NOT TO HIT OBJECTS, BASIC THINGS. THE BRAIN IS IN THE BASE WHICH IS WHERE WE ACTUALLY HAVE A VIRTUAL SITE AND MANAGE ALL THE ROBOTS, PRIORITIZING ALL THE TASKS. THAT BRAIN SENDS THE ROBOT INSTRUCTIONS ON WHAT TO DO. GO STRAIGHT, LEFT, RIGHT, AND THEY FULFILL THE TASK.>>AND THEY PICK UP THESE BIG BLUE BOXES FILLED WITH PRODUCTS.>>YES.>>HOW DO YOU KNOW WHERE THE PRAUKZ ARE? ANY PRODUCT THAT GOES INTO OUR SYSTEM GOES INTO A TOTE AND A SPECIFIC BIN. OUR SYSTEM AT ANY GIVEN TIME KNOWS FOR EVERY PRODUCT THAT CAME IN EXACTLY WHERE IT’S LOCATED AND ADDITIONAL INFORMATION LIKE EXPIRATION DATES. IT CAN MOVE IT AROUND AOPTIMIZE FOR THE MOVEMENT. YOU CAN SAY YOU’RE A FAST MOVER, I’M PUTTING YOU CLOSER TO THE TOUCH POINT. IT TAKES LESS TIME AND EFFORT TO GET TO YOU.>>YOU ARE BUYING ROBOTS OR A SERVICE?>>OUR MODEL IS A FULFILLMENT OF A SERVICE MODEL. WE WOULD JUST FULFILL IT FOR THEM. THEY SEND US INVENTORY AND ORDER INFORMATION AND WE TAKE CARE OF ALL THE REST. WE TAKE CARE OF THE LABOR, FACILITY, ROBOTS, MAINTENANCE, EVERYTHING THAT IS INVOLVED TO MAKE SURE THAT CUSTOMER GETS THEIR PERFECT ORDER.>>WHY DID YOU ORIGINALLY THINK ABOUT THE SERVICE APPROACH INSTEAD OF THE TECHNOLOGY APPROACH AS YOU SAID?>>I THINK IT’S REALLY TO DO WITH WHERE EXACTLY THAT, WHERE WE CAN BRING THE MOST VALUE TO THE MARKET AND HOW QUESTION EXPAND THE MARKET AND ENABLE PLAYERS THAT OTHERWISE CAN’T.>>TWO YEARS AGO THEY CHANGED THE BUSINESS. THE DRONE HAS ADDED A NUMBER OF ADDITIONS TO THE LINE INCLUDING THE LIGHT WEIGHT AIR AND SUPER PORTABLE SPARK. INTRODUCED LAST WEEK, IT DOESN’T REPRESENT A MAJOR UPGRADE FROM THE PREDECESSOR, IT DOES BRING IMPORTANT TWEEAKS TO THE PRODUC. THE CAMERA IS THE BIGGEST FOCUS. THE COMPANY OPTED TO PROVIDE TWO DIFFERENT SKEWS. THERE IS A PRO WHICH IS THE FIRST TO SPORT CAMERA AND THE FIRST IN LINE TO OFFER OPTICAL ZOOM AS THE NAME IMPLIES. THE SWAPPABLE DIDN’T SHOW UP THIS TIME OUT. THE IMAGE OF VIDEO QUALITY IS SOLID ON BOTH MODELS AND FOR MOST USERS, THE CHEAPER ZOOM IS SUFFICIENT. IT INCLUDES COOL TRICKS LIKE THIS FEATURE WHICH CREATES A HITCHCOCK LIKE EFFECT. FLYING THE DRONES IS SIMILAR TO THE PREDECESSORS. THERE ARE TWEAKS ONBOARD, YOU LIKELY WON’T NOTICE MUCH OF A DIFFERENCE EXCEPT FOR A COUPLE EXTRA MINUTES OF BATTERY LIFE. OBSTACLE DETECTION WORKS WELL. WE DID MANAGE TO CRASH INTO THE TREE ONCE A DRONE IS OUT OF SIGHT. THIS IS A REVOLUTIONARY IMPROVEMENT. IT IS NOT TO JUSTIFY BUT IT’S ENOUGH TO KEEP IT AT THE FOREFRONT OF CONSUMER DRONES. THE ZOOM AND PRO ARE AVAILABLE NOW STARTING AT 1249 AND 1449 RESPECTIVELY. ♪ MY HEAD IS TROUBLED I NEED A GUY ♪>>THIS IS A MAJOR FORM WHERE WE SPECIALIZE BUILDING WARDROBE BASED ON LIFESTYLE. IN TERMS OF STYLE AND COLOR, I WAS AWARE OF WHAT I WORE. I COLLECTED JORDANS. I WANT TO BE FASHIONABLE JUST BECAUSE I CAN. AND THAT FUELED MY DESIRE TO LEARN PATTERNS AND START TRAVELING THE WORLD AND IT’S REALLY FIGURING OUT HOW TO PROCESS WHAT KIND OF WAS DONE AT A HIGH LEVEL AND RESPEBCTABLE LEVEL.>>SO THERE WAS AN ATTEMPT TO BUILD AN ENTERPRISE SOFTWARE COMPANY IN 2018. AND THAT DIDN’T GO AS PLANNED WHICH WAS GOOD. BECAUSE IT PUT ME IN A POSITION WHERE I SAID YOU HAVE TO FIGURE OUT WHAT CAN YOU DO BEST AND WHAT FEELS NATURAL AND KIND OF COMFORTABLE AND YOU CAN GUIDE THIS PROCESS WITHOUT RELYING ON OTHERS TO MAKE THE DREAM COME TRUE.>>HEY.>>SO THIS IS THE WORK YOU CHOSE FROM THE APP WITH A FEW UPDATES PER YOUR REQUEST. SO LINING INSIDE OF THE JACKET WAS A NICE CURRENT COLOR. THE LAST BUTTON HOLE MATCHES THE INSIDELINING. DROP THAT IN THE BACK.>>SHOOT. WHAT?>>THE MUSIC ASPECT CAME UP ABOUT A GOOD YEAR AGO. SO WE WERE JUST TRYING TO UNDERSTAND WHAT IS IT THAT PEOPLE, WHAT ARE THEY CRASS PING ON WHEN THEY SAY I’M LOOKING FOR SOMETHING BUT I JUST DON’T KNOW WHAT IT IS. LIKE WHEN THERE IS IMPULSE BUYING, THERE IS SOMETHING DRIVING THAT. SO THE MUSIC PIECE IS WHAT WE DETERMINED DRIVES A LOT OF OUR CULTURAL UNDERSTANDING, OUR PURCHASING HABITS, EMOTIONS, THINGS OF THAT NATURE. MODIFY ALLOWS US TO LEARN WHAT OTHERS ARE DOING IN REAL TIME. WE ACCESS THAT INFORMATION. THAT’S VERY VALUABLE. BECAUSE IT’S A DISCOVERY TOOL. WE CAN UNDERSTAND A LITTLE BIT MORE BEYOND YOUR TRANSACTION ALLAH OR YOU’RE BUYING SOMETHING THAT LOOKS SIMILAR TO ANOTHER GROUP. SO IT PUTS A LITTLE BIT MORE ONUS ON US TO THEN BE AN ACTUAL TASTE MAKING PLATFORM.>>OVER TIME WE’RE GOING TO GROW AND BECOME MORE TECHNICAL AND PRODUCT SAVVY. SO SEE NEW SAN FRANCISCO.>>CARRY ON.>>READY TO GO.>>THANK YOU.>>WALKING OUT HERE WITH A SUIT. THERE YOU GO.>>WE CAME OUT INTO THE MARKET WITH A LONG TERM VISION OF –>>>AN IDEAL MARKET FOR ROBOTICS. THE PROBLEM IS SOLVABLE. IT’S THE SEMISTRUCTURED ENVIRONMENT. YOU KNOW WHAT IT LOOKS LIKE. KIND OF KNOW WHAT ALL THE FACTORS ARE. AND THEN THE PEOPLE INSIDE THAT ENVIRONMENT ARE FINANCIALLY INCENTIVIZED TO BEHAVE THEMSELVES. SO IF YOU HAVE A ROBOT DRIVING AROUND, NO ONE IS GOING TO SAY HEY ROBOT, DID YOU FIND ME? OR I DO THINGS LIKE THAT. SO IT’S REALLY AN IDEAL AREA TO DEPLOY RIGHT NOW. MANUFACTURING AND WAREHOUSING JUST LOOKED LIKE A REALLY ATTRACTABLE PROBLEM FOR ROBOTIC PERSPECTIVE. THERE WERE A LOT OF STRONG MARKE MARKET INDICATORS. THERE IS A MASSIVE LABOR SHORTAGE IN WAREHOUSING AND MANUFACTURING. THERE’S ABOUT $600,000 UNFILL POSITIONS. IF YOU GO TO ANY CONFERENCE TODAY FROM MATERIAL HANDLING AND LOGISTICS, ALL YOU’RE GOING TO HEAR IS I CAN’T FIND ENOUGH PEOPLE TO DO THE JOBS. IT’S THE NUMBER ONE FACTOR THAT PEOPLE TALK ABOUT WHEN IT COMES TO ROBOTS AND JOBS OR JUST LABOR IN GENERAL.>>WHY DON’T WE HAVE SOMETHING LIKE A DISHWASHER FOR FOALLDING. WE HAVE A WASHER AND DRIER. WHERE IS THE FOLDING? THAT’S WHAT INSPIRED ME TO START WORKING ON FOLDING. FOLDING LAUNDRY WITH A MACHINE IS A PAIN. YOU KNOW, FABRIC IS REALLY, REALLY DIFFICULT FOR ENGINEERS. AND IF YOU THINK ABOUT IT, YOU HAVE SO MANY TYPES OF ITEMS IN YOUR LAUNDRY AND SO MANY FABRIC TYPES. AND YOU NEED TO MAKE A TECHNOLOGY THAT WILL HAND WILL ALL OF THEM TOGETHER. THEY HAVE TO FOAL THEM AT SPEED AND DON’T FORGET THE PART OF COST AND SIZE, OF COURSE. YOU HAVE A LOT OF MACHINES TODAY THAT ARE INDUSTRIALIZED. BUT THEY’RE ROOM SIZED. THEY COST TENS OF THOUSANDS OF DOLLARS AND USUALLY THIS HE CAN FOLD ONLY ONE ITEM VERY WELL. WE’RE DOING THE MAJORITY OF ITEMS THAT YOU HAVE IN AN AVERAGE LAUNDRY. QUESTION DO SHIRTS, TOWELS, PANTS, EVEN PILLOWCASES. THESE ARE THE MOST LABORIOUS ITEMS AND ALL THE SMALL ITEMS LIKE UNDERGARMENTS AND LARGE ITEMS LIKE LINEN RIGHT NOW THEY’RE NOT IN OUR FOCUS. LARGE BECAUSE THE MACHINE WOULD HAVE TO BE LARGER AND SMALL BECAUSE WITH HE CAN DO IT FASTER BY HAND. WE HAD MULTIPLE PROTOTYPES ALONG THE WAY AND WE HAVE MODELS THAT GO TO DIFFERENT MARKETS. THE FIRST UPNITS WILL BE THE EN OF 2019. WE’RE TRYING TO MAKE THAT DEADLINE. THIS IS A DEVELOPMENT STAGE SO WE KEEP EVERYONE APPRISED. BUT RIGHT NOW, STILL ON TARGET. WE’RE STILL ON TARGET FOR END OF 2019.>>THIS IS A PLATFORM WE STARTED TO REDUCE INJURY RISK USING ANALYTICS AND HARDWARE. AND THAT FORCE PLATE MEASURES HOW MUCH FORCE PRESSURE IS PUT IN THE GROUND IN DIFFERENT DIRECTIONS. FROM THAT PATTERN, WE’VE BEEN ABLE TO IDENTIFY AND PREDICT AND SUBSEQUENTLY REDUCE NIRZ INITIALLY IN ATHLETES. THEN WE MOVED INTO THE MILITARY.>>SO WE USE A JUMP. FROM THE JUMP TEST, WE FORCE ON THE GROUND AND THE PATTERN AND STANDARDIZE THROUGH SOFTWARE. THAT ALLOWS US TO PREDICT INJURIES TO THE UPPER BODY. THERE’S A LOT OF BALANCE TESTS OUT THERE. AND FORCE PLATES, YOU KNOW, THE HARDWARE WE USE HAS BEEN AROUND FOR DECADES. AND SO IT’S REAL LY THE DATA SCIENCE THAT ALLOWED US TO PROVIDE SOMETHING UNIQUE. WE’RE LOOKING FOR SOMEBODY THAT CAN MAKE US BETTER AND NOT JUST PROVIDE US CAPITAL. SO PLAYGROUNDS EXPERTISE, PARTICULARLY WITH HARDWARE WAS SOMETHING THAT REALLY, YOU KNOW, PAELD TO US. THAT’S WHY WE STARTED A RELATIONSHIP WITH PLAYGROUND.>>YOU HAVE THE NEGATIVE STEREOTYPES IN OAKLAND. THEY’RE LOOKING BEYOND THAT TO ACTUALLY HELP THE COMMUNITY. THEY MAKE SURE YOUR SCHOOL IS FIRST. THEY MAKE SURE YOU’RE DOING GOOD IN EVERYTHING. THEY CHECKUP ON YOU. THEY SEE YOU’RE DOWN.>>IT KEEPS THEM OUT OF TROUBLE. IT KEEPS ME OCCUPIED INSTEAD OF DOING OTHER THINGS. I CAN BE HERE WORKING OUT.>>GUARDIAN’S NONPROFIT GYM THAT GIVES FREE BOXING COULD KIDS AFTER SCHOOL AS WELL AS AFFORDABLE ADULT MEMBERSHIPS.>>I WAS DOING JIU-JITSU FOR EIGHT TO TEN YEARS AT THE TIME. AND THE THING THAT KIND OF CONVERGED WITH THAT AT THE SAME TIME IS THAT I WAS DOING THE BIG BROTHER BIG SISTERS PROGRAM. I HAD A LITTLE BROTHER. HE WAS 11 YEARS OLD. HE WAS GRATE KID. WHAT I KEPT THINKING AS WE WERE DOING THE EVENTS IS WOULDN’T IT BE COOL IF HE REALLY LOVED TO DO JIU-JITSU AND WE COULD MEET AT THE GYM? THAT IS ANOTHER REASON THAT I THINK THE IDEA TOOK OFF WAS THE COMBINATION OF REALIZING PEOPLE COULDN’T AFFORD IT AND ALSO REALIZING THAT PEOPLE LIKE ME REALLY WANTED TO VOLUNTEER AND GIVE BACK. SO BY KIND OF MERGING THEIR PASSION MAKES IT REALLY EASY FOR PEOPLE TO VOLUNTEER, MENTOR AND GIVE BACK. I WORK AT TWITTER FOR THREE YEARS. I WAS THERE BEFORE THE IPO AND WORKED WITH THE LARGEST CLIENTS, COMCAST AND BEATS BY DRE AND PEOPLE LIKE THAT. IT WAS REALLY A TOUGH DECISION, HONESTLY, TO QUIT OR NOT. WHAT IT CAME DOWN TO FOR ME IS ONCE WE HIT THAT CRITICAL MASS, I JUST FELT LIKE IT WAS A ONCE IN A LIFETIME OPPORTUNITY THAT I HAD TO GO ALL IN ON. I LEARNED SO MUCH AT TWITTER ABOUT THE CULTURE AND I THINK THAT’S ONE REASON THAT HE IS SUCH A BELOVED CEO IS BECAUSE HE TALKED TO THE PEOPLE. HE MADE EVERYONE FEEL IMPORTANT. EVERYONE THOUGHT HE WAS THEIR FRIEND. AND I REALIZE THAT WE NEEDED TO BUILD A SIMILAR TYPE CULTURE IF HE WITH WANTED TO BE HERE FOR THE NEXT COUPLE OF DECADES, RIGHT? I FELT THAT WAS SOMETHING THAT I REAL Q REALLY HAD TO BE HERE AND I COULDN’T FAKE. I HAD TO ACTUALLY PUT THE HARD WORK IN TO DO IT. I HAVE REALLY MIXED THOUGHTS ABOUT WHERE — WHAT THE TECH WORLD HAS DONE TO THE BARRIER. I THINK THERE ARE THINGS WE WORRY ABOUT, SPECIFICALLY LIKE THE PRICE OF HOUSING GOING UP IN GENERAL. TECH IS FINE, GREAT, PROVIDES A LOT OF DECENT MIDDLE CLASS JOBS. THERE DEFINITELY IS THAT ELEMENT THAT IT’S CHANGING OUR COMMUNITIES. IT’S NO THE NECESSARILY GOOD FOR EVERYBODY. AND I THINK IN SOME WAYS THIS IS OUR SMALL STEP AT MAKING A SMALL IMPACT ON THAT. SO MANY PEOPLE IN TECH TALK ABOUT TODAY, ONE OF THE PROBLEMS AND THE REASON THERE IS NOT DIVERSITY IS BECAUSE SO MUCH COMES FROM REFERRALS. WHEN YOU DON’T HAVE THAT NETWORK TO REFER YOU INTO AN INTERNSHIP OR A JOB OR WHATEVER IT MAY BE, BECOMES VERY HARD FOR YOU TO GET IN FRONT OF THE RIGHT PEOPLE AND GET THAT JOB.>>ONE OF THE GUYS THAT PRACTICES HERE, HE HAD A RESTAURANT. HE COMES AND DONATES FOOD TO THE GYM FOR THE KIDS. AND IT WAS SUMMER TIME. I DIDN’T HAVE NOTHING DO, NOTHING BETTER TO DO. JUST TRAIN. AND HE OFFERED ME A JOB. AND I TOOK IT. I WAS WORKING WITH HIM. I WAS A COOK AT HIS RESTAURANT FOR ABOUT TWO MONTHS.>>CHILDREN HERE ARE SO EAGER TO LEARN. THEY WERE NOT RAISED AS ATHLETES OR THEY WERE NOT RAISED AS, LIKE, THEY’VE BEEN BOXING SINCE THEY WERE 10 OR 11. THE THING WITH GUARDIAN BEING FREE IS WAY MORE WELCOMING THAN ANY OTHER GYM I’VE BEEN IN OR SEEN. I THINK SOME OF THE KIDS, THEY WALK IN FROM DIFFERENT WALKS OF LIFE AND THEY WANT TO EMBRACE IT MORE. >>WE’RE TEACHING THEM HOW TO BUNCH OR GRAPPLE. BUT SIMULTANEOUSLY, WE’RE DEALING WITH IMMIGRATION ISSUES IN THEIR FAMILY AND COMMUNITY. WE’RE DEALING WITH THE POOR ACADEMIC PERFORMANCE IN SCHOOL AND HELPING TO STRATEGIZE HOW THEY CAN IMPROVE. THAT WE’RE DEALING WITH TEEN PREGNANCY AND PRESSURE TO JOIN GANGS. ALL THE THINGS YOU IMAGINE SOMEBODY MIGHT BRING INTO A SPACE LIKE. THIS WE’VE SEEN THAT.>>ACTUALLY, STARTED COMPETING IN JIU-JITSU LAST YEAR. I DID THREE TOURNAMENTS. I HAVE ONE COMING UP NEXT MONTH.>>HOW DID YOU DO?>>I HAD TWO SECOND PLACES. I USED TO WANT TO A LONG TIME AGO. I NEVER DID BECAUSE I HAD TO PAY. WHEN I FOUND OUT ABOUT THIS GYM, IT WAS LIKE — IT WAS GREAT. >>WE HEAR OH, YOU’RE TEACHING THESE KIDS TO FIGHT. YOU TAKE A 16-YEAR-OLD BOY AND DO I AFEWA FEW CLASSES AND THAF CRAP, I DON’T KNOW ANYTHING. S THEY HAVE TO START BUILDING FROM THE GROUND UP. WHEN YOU GIVE SOMEBODY THAT HAS NOTHING, WHEN YOU GIVE THEM SOMETHING, THEY’RE MUCH MORE IN TUNE WITH THAT AND WANT TO DEVELOP. THAT IT TAKES THE FOCUS OFF OF THE NEGATIVITY AS OPPOSED TO TAKING THIS TOOL AND SAYING NOW HOW DO I MUG SOMEBODY? THAT CAN BE ON THE COVER OF A WHEATIES BOX. I DON’T HAVE TO SPEND FIVE YEARS IN JAIL. I CAN BE WHAT I WANT TO BE. I FOUND THIS. I UNLOCKED MY POTENTIAL.>>IT’S ABOUT SELF CONTROL. IT’S ABOUT RESPECTING YOURSELF. IT’S ABOUT RESPECTING YOUR NEIGHBOR. AND IT’S ABOUT PUTTING EXPECTATIONS ON THE DAILY PERFORMANCE OF A YOUNG ADULT AND SAYING YOU WILL BE THIS THING, THIS EMBODYMENT OF INTEGRITY OR YOU’LL NOT BE A PART OF OUR COMMUNITY.>>WE DO HAVE A FOOD PROGRAM RIGHT NOW FOR KIDS. SO WE HAVE A COUPLE OF LOCAL RESTAURANTS THAT DONATE FOOD AND OUR KIDS CAN EAT THE HEALTHY MEALS AFTER TRAINING. WE DO HAVE A SMALL TUTORING PROGRAM WHICH IS ESSENTIALLY AT ONE DESK, TWO TO THREE KIDS MAXIMUM FOR TIME. WE WANT TO TAKE THAT TO A 100 X LEVEL. WE’RE TRYING DO THE SAME THING THAT SO MANY OTHER NONPROFITS ARE TRYING TO DO WHICH IS GET KIDS BETTER GRADES, MAKE THEM HEALTHIER. WE’RE USING MARTIAL ARTS AS A BRIDGE TO GET THERE.>>ABOUT A WEEK AGO I FOUND THIS BLOCK CHAIN PROJECT. I HAVE THE HEAD OF PRODUCT FOR THIS. THIS MONSTER OVER HERE. WHY DON’T YOU TELL ME ABOUT THE PROJECT AND HOW IS THIS DIFFERENT FROM ONLINE PLATFORMS THAT YOU HAVE?>>THE WHOLE SCOPE OF THE J PROJECT IS TRYING TO BULL MARKET GRADE. AND ALSO PROVIDE A CONSOLIDATED VIEW OF A VERY DECENTRALIZED PRODUCT RIGHT NOW. THERE ARE TRAINING APPS, MESSAGING APPS NOW AND MORE PREVALENT ABOUT WHAT PEOPLE ARE WILLING TO DO WITHIN A MARKET. AND THE UPPER PANEL IS MORE AROUND A APP STORE SIMILAR TO LIKE THE APPLE APP STORE WHERE OURSELVES AND VENDORS CAN PUT APPLICATIONS IN WHETHER IT IS NEWS, CHARTING, XL APPS AND OTHER APPLICATIONS IN THE APPLICATION. WE WANTED TO COMPLETE VIEW OF THE CRYPTOCURRENCY MARKETPLACE AS BEST WE CAN.>>WHY WOULDN’T YOU JUST DO THIS IN A WEBSITE?>>PART OF IT HAS TO DO WITH THE COMPLIANCE PART OF OUR APPLICATION. LOGGING ALL THAT INFORMATION INTO THE LEDGER, INTO A PRIVATE LEDGER, BLOCK CHAIN APPLICATION AND THAT’S WHY THE HARDWARE IS KEY TO THIS APPLICATION.>>THIS IS KPLINLT. SO ANY KEYSTROKE I TYPE ON HERE IS RECORDED SOME WHERE.>>THAT’S THE GOAL. AND THAT’S THE ONLY WAY CAN YOU GET IT ON TRADER’S DESK?>>YES.>>HOW IS THIS DIFFERENT FROM SOMETHING LIKE A BLOOMBERG TERMINAL OR WRITER’S TERMINAL?>>BOTH FIRMS ARE SHOWING CERTAIN ASPECTS OF THE MARKETPLACE. MAYBE NOT FOR THE LEVEL OF DEPTH AND BREADTH THAT I THINK AN INSTITUTIONAL TRADER WANTS TO V DOESN’T MEAN THEY WON’T. I JUST THINK THAT THEY’RE FOCUSED ON THE CORE COMPETENCIES. THIS IS REALLY TRANSPARENT AND INTO THE CRYPTO ZHAFRPGS AROUND THE WORLD.>>YOU TALK WITH THE TRADERS. THEY SAID THEY WANTED A SWEET CURVED SCREEN SETUP? LOOKS LIKE SOMETHING OUT OF A GAMING RIG. >>WE’RE ALWAYS GATHERING VOICE OF THE CUSTOMER FEEDBACK, WHAT THEY WANT, WHERE THEY WANT. AGAIN, IT’S EARLY DAYS FOR US. WE HAVE TO UNDERSTAND WHAT TRADERS AND INSTITUTIONAL TRADERS WANT AND NEED TO HAVE. WE’RE GETTING FEEDBACK AND WE’RE KIND OF MODIFYING THE ROAD MAP AS WE GO.>>I BELIEVE THAT SIDEWALKS ARE SACRED, YES. WE NEED TO CREATE THOSE THANLT ACT WITH PEOPLE IN THE BEST WAY AS POSSIBLE. I’M THE CEO OF KIWI. WE BUILD ROBOTS FOR — RIGHT NOW WE’RE THE COMPANY THAT HAS — AND THE ONLY ONE THAT DOES THAT TO THAT SCALE. WE’RE BASED HERE. WE HAVE DELIVERED MORE THAN 10,000 ORDERS SO FAR IN THE LAST MONTH. WE SAID WE HAD ONE ROBOT GOING FROM THE RESTAURANT TO THE CUSTOMER HOUSE. AND WE FOUND OUT PRETTY EASY AND PRETTY FAST THAT THAT WAS EFFICIENT. THEY NEED TO BE CLOSER. AS SOON AS YOU SEND THE ROBOT FROM THE RESTAURANT TO THE CUSTOMER HOUSE, THE SECOND OR THIRD ARRIVE LATE AND WE CREATED A MULTIMODEL SYSTEM. SO WE ACTUALLY HAVE THREE ROBOTS. A ROBOT INSIDE THE RESTAURANT. WE HAVE A SIMULTANEOUS ONE THAT GOES ON THE STREETS. RIGHT NOW WE HAVE HUMANS DRIVING THEM. SO WE’RE OPERATIONAL LIKE THIS. WE HAVE ROBOTS DEPLOYED IN THE CITY DEPENDING ON THE DEMAND OF ZONES. AND THEN WE PICK UP ORDERS. WE PICK UP DOZENS OF MEALS FROM RESTAURANTS AND THEN LOAD THE ROBOTS. THE ROBOTS LAST. WE DIVIDED THE LOGISTICS AND RIGHT NOW IT WORKS. THE TECHNOLOGY IS BASED MAINLY ON CAMERAS. WE DON’T USE HIGH END SENSORS. AND THAT ALLOWED US TO, LIKE, GO BEYOND TO MOVING A SAFER PATH IN OUR OPINION. SO RIGHT NOW OUR SOLUTION IS LIKE HUMANS PLUS ROBOTS. WE CAN HAVE A HIGHER DELIVERY COST AND MAKE SURE THE DELIVERY COMPANIES AND SOCIETY CAN ORDER SUSTAINABLE WAY. SO THE ROBOTS, FOR EXAMPLE, IF YOU’RE GOING TO START TO HAVE MORE ORDERS IN A SPECIFIC ZONE, THE ROBOTS CAN MOVE TO THAT ZONE. AND DEPENDING ON THE DEMAND LIKE WE TRY TO OPTIMIZE EVERY TIME THEY TRY A ROUTE, YES. SO THE ROBOTS WILL TRY ALWAYS TO MAKE SURE THAT IT IS AS FAST AS POSSIBLE. ONE OF THE CONCERNS RIGHT NOW LIKE WE HAVE IN THE SPACE IS WHAT IS THAT POINT WHERE AUTOMATION DOESN’T MAKE SENSE? RIGHT NOW HAVING HUMANS BLAST ROBOTS MAKES SENSE. AS SOON AS WE’RE SURE WE CAN AUTOMATE THINGS, WE’LL DO IT. BUT BY NOW, WE’RE USING BOTH.>>HELLO. I’M HERE WITH THE LUMOS, NEXT GENERATION HELMET. IT BLINKS AS YOU’RE RIDING SO IT SIGNALS FOR YOU. LET’S TAKE A LOOK AND SEE WHAT IT’S LIKE TO SET UP. I’M SUPPOSED TO GIVE THE HELMET A QUICK PRESS TO TURN IT ON. BOOM. IT’S ON. NOW I NEED TO TEST AND MOUNT THE REMOTE TO THE HANDLE BAR. NOW TO BE CLEAR, THE LUMOS HELMET AND THE DO HICKEY RIGHT HERE HAS BEEN ON THE MARKET FOR A LITTLE WHILE. BUT WHAT IS NEW ABOUT THIS RELEASE IS APPLE WATCH COMPATIBILITY. INSTEAD OF HAVING TO HIT LEFT OR RIGHT, I CAN USE BIKER SIGNALS. OF COURSE, I’D HAVE TO DO IT ON THE HAND THAT MY WATCH IS ON. THEN IT WILL SHOW UP ON MY HELMET. THE NEXT APP IS TO SYNC UP MY APPLE WATCH WITH THE HELMET ITSELF. IT’S ME TRAINING THE WATCH, WHAT IT FEELS LIKE FOR ME TO SAY, LEFT. AND NOW I NEED TO DO THE TURNING RIGHT POSE. UP. THEN I HIT NEXT. ALL RIGHT. NOW IT’S CALIBRATING. OKAY. NOW THE WATCH REMEMBERS. I’M GOING TO POP THIS DORKY LITTLE THING ON REAL QUICK. MAKE SURE I’M READY TO GO. IT WORKS AT TIMES. IT’S A LITTLE BUGGY WITH THE APPLE WATCH GESTURING. SO THE CEO WAS TELLING US VIA E-MAIL THAT IT’S VERY SENSITIVE. THAT IS THE CALL INAUGURATION IS PRETTY SENSITIVE. SO I HAVE TO MAKE SURE I’M DOING IT IN LIKE THE EXACT SAME MOTION THAT I DID DURING THE CALIBRATION. I’D SAY IT WORKS 80% OF THE TIME. IF IT DOESN’T, THEN YOU HAVE THE LITTLE BACKUP AND JUST HIT LEFT OR RIGHT. TECHNOLOGY.>>THIS IS THE WORLD’S FIRST CONSUMER NIGHT VISION CAMERA. WE’RE HOPING TO DELIVER TO THE WORLD CAPABILITY THAT NO ONE HAS YET. THE ABILITY TO SEE AT NIGHT. WE THINK THE MARKET IS UNDERSERVED TO DAY. NIGHT VISION IS VERY EXPENSIVE. SLOW RESOLUTION. IT’S INACCESSIBLE TO MOST PEOPLE. WE KNOW WHAT WE CAN DO WITH THE SENSORS. WE WANT TO PROVIDE THE CAPABILITY TO THE AVERAGE CONSUMER. WANT TO HELP THEM BRING THEIR KN NIGHT TO LIFE. THIS IS COMPLETELY DIFFERENT. YOU ARE OUT AT TRANSITION BETWEEN DAY AND KNIGHT OR NIGHT AND DAY. A LOT OF TIMES YOU CAN’T CAPTURE THE MOMENT THAT’S ARE IMPORTANT TO YOU WITH THE CURRENT TECHNOLOGY THAT IS AVAILABLE. AS A COMPANY, WE’RE PEOPLE THAT WANT TO MAKE A DIRECT CONSUMER PRODUCT. WE LOVE CAMERAS. CONTACT WITH THE END CUSTOMER IS IMPORTANT. WE ALSO MAKE A SPECIAL CENSOR. AND THIS IS NOT SOMETHING THAT NECESSARILY IS THE SCALE OF A CELL PHONE. WE FELT WE WERE IN BEST POSITION TO DELIVER IT TO THE CONSUMER. THE HEART OF THE AURORA IS THE PRO PRY TAKERY SENSORS. WE’VE BEEN MAKING THEM FOR NIGHT VISION FOR YEARS NOW. WE DECIDED TO BRING THAT CAPABILITY INTO A CAMERA FOR THE EVERY DAY PERSON. THE COMPANY HAS BEEN AROUND FOR A DECADE. DURING THAT TIME, WE SOLD MOSTLY SENSORS TO OUR CUSTOMERS. THIS IS OUR FIRST CONSUMER BASED PRODUCT. THIS IS OUR FIRST DIRECT CAMERA PRODUCT. AND WE COULDN’T BE MORE EXCITED ABOUT IT. THE GOVERNMENT HAS BEEN AN AVID SUPPORTER OF OUR PRODUCTS. WE RAISED OVER $50 MILLION THUS FAR. AS WE GO FORWARD AS A COMPANY WITH THE SUCCESS, WE’LL CONTINUE TO DEVELOP THE CAMERA’S PERFORMANCE AND CONTINUE TO DEVELOP HOW IT INTERACTS WITH THE WORLD. THE PRODUCT GOES FOR SALE TODAY FOR PREORDER. ONLINE AT SIGH ON– AT THE PRIC OF $799.>>WE WERE FOUNDED IN SAN DIEGO BY A FEW SURFERS, MYSELF BEING ONE OF THEM. WE TAKE THE CANVAS AND THE FLAVORS AND THE AROMAS FROM THE CANVAS PLANT AND WE SAVE THEM AND REINTRODUCE THEM LATER ON IN THE PROCESS.>>THERE ARE A WIDE RANGE OF THESE FOUND IN A VARIETY OF DIFFERENT PLANTS. THAT’S WHAT GIVES CANNABIS STREAMS THE VERY DEFIND, LIKE, FEATURES. WHAT MAKES THEM NOTICEABLE. ITS WHAT MAKES PURE JACK TASTE LIKE PURE JACK.>>AND ADD ANYTHING THAT IS NOT NEEDED INTO THE CANNABIS PLANT.>>LIKE BUBBLE GUM FLAVORING.>>YEAH. IT’S ALL CANNABIS FLAVORS FROM THE CANNABIS PLANT. AND, YEAH, THAT’S ONE THING WE YALE DO LIKE ABOUT PACKS. THEY GO REALLY WELL TOGETHER. I MEAN THE FACT THAT YOU CAN SET DIFFERENT TEMPERATURES ON THEIR DEVICES REALLY KIND OF HELPS EXPRESS THE GOOD FLAVORS OF THE CANNABIS PLANT. SO WELCOME TO PACKS FIRST OF ALL. I’M THE PACKS. CONSUMER TECHNOLOGY BRAND IN THE CANNABIS SPACE. WE MAKE WONDERFUL VAPORIZERS FOR FLOWER AND OIL. I DON’T KNOW IF APPLE MADE VAPORIZERS. IF THEY DON’T, WE HOPE WE MEET THAT STANDARD. WE THINK THEY HAVE A GREAT LYN YARD OF HARDWARE. WHAT I’M REALLY EXCITED ABOUT IS US MOVING MORE INTO THE SOFTWARE REALM TO CREATE A MORE WHOLISTIC EXPERIENCE FOR PEOPLE.>>WE HAVE TWO DID HE DIFFERENT PRODUCT LINES. WITH UNIS THE PACKS TWO AND THREE. THAT TAKES LOOSE FLOWER, YOU GRIND IT UP AND PUT IT IN THERE AND MUCH MORE TIED TO WHAT PEOPLE WOULD CONSIDER TO BE KIND OF THE ORIGINAL CANNABIS EXPERIENCE. YOU GOOD TOTE SEE THE FLOWER. OR OTHER LINE IS CALLED THE AIRA. THIS IS YOU WILLY THE ERA. AND THIS LINE TAKES THESE PODS OF EXTRACT, THE CONCENTRATE.>>SO WE USE A FEW SMALL FARMERS OUT THE STATE OF CALIFORNIA. THEY ALL BRING EVERYTHING IN THROUGH HERE WHERE IT GETS QUARANTINED AND MOVE ON THIS WAY. WE’RE GETTING SOME OF THE GRINDING DONE IN THIS AREA. SO ONCE EVERYTHING PASSES THE QUARANTINE, ALL OF THE PLANT MATTER GETS GROUND UP IN HERE AND READY TO PUT INTO THE SOCKS FOR THE EXTRACTION PROCESS. THIS MACHINE USES VOLATILE VOLUME SENTS TO RUN THROUGH THE PLANT MATERIAL AND CARRY AWAY THE FATS, WAXES AND OIL. IT GOES THROUGH THESE THREE TUBES HERE AND IT COMES OUT OF THE FOURTH ONE. THAT WILL BE THE CRUDE OIL. THIS MACHINE TYPICALLY HAS ABOUT 10% YIELD FROM THE STARTING PLANT MATERIAL. WE’LL GET ABOUT 1% YIELD FROM THE FINAL EXTRACTION PROCESS. SO THIS IS THE SECONDARY FILTRATION PROCESS. IT’S GOING TO SEPARATE OUT EVEN MORE OF THE MATERIAL. THIS IS THE EVAPORATOR. IT HAS A WARM WATER BACK HERE WHICH IS JUST HOT ENOUGH TO EVAPORATE THE ETHANOL AND LEAVE THE OIL IN HERE. ETHANOL WILL FLOAT UP HERE WHERE IT CONDENSES ON THESE COILS. AND IT FALLS INTO THIS CONTAINER. YOU’LL BE LEFT WITH A MIX THUR IS ALL OIL AND READY FOR THE NEXT EXTRACTION PROCESS. THE OIL IS PUT IN AT THE TOP WHERE IT DRIPS DOWN THROUGH HERE AND YOU CAN SEE LIKE SOME OF THE DRIPS EVEN HAPPENING. FLOATS DOWN THROUGH HERE AND THERE ARE WIPERS INSIDE THAT SEPARATE IT OUT BY THE MOLECULAR WEIGHT. AND THEN YOU GET THE OIL WHICH TYPICALLY COMES OUT 90% THC. THAT’S THE GOOD STUFF.>>WE WERE LOOKING FOR EVERYBODY IN THE FIVE 10 CARTRIDGES. AND PACKS IS THE FIRST COMPANY TO COME OUT WITH SOMETHING DIFFERENT THAT HAD TECH BEYOND WHAT EVERYBODY ELSE HAD. THEY HAD A CLOSED LIP SYSTEM, THE BLUE TOOTH APPLICATIONS, ALL THAT STUFF WAS JUST NEXT LEVEL FOR THE INDUSTRY.>>IT AFFECTS THE MOOD THEY’RE TRYING TO GET.>>SO I THINK IN A LOT OF OTHER SPACES, THEY’RE MATURE ENOUGH. IF YOU TAKE ALCOHOL OR OTHER THINGS, PEOPLE ARE FAMILIAR ENOUGH AT A CERTAIN POINT IN LIFE WHERE THEY KNOW WHAT A DOSE OR A SERVING IS. YOU UNDERSTAND WHAT A GLASS OF WINE WILL FEEL LIKE. ONE OF THE ISSUES NEW PEOPLE HAVE TO THIS WORLD OF VAPING IS THAT THEY DON’T REALLY HAVE A SENSE OF WHAT A SERVING IS OR WHAT AF DOSE IS. WITH THIS DEVICE, YOU CAN PAIR IT TO YOUR PHONE. IT GIVES THEM SEVERAL SETTINGS, MICRO, SMALL, MEDIUM AND LARGE. WHEN THEY START SMOKING OUT OF THE VAPORIZER, IT WILL TURN OFF LETTING YOU KNOW YOU REACHED THAT AMOUNT. OF COURSE, IT’S ALL UP TO YOU. CAN TURN THAT OFF AND CHANGE THE SETTING. WE DEVELOPED THIS BECAUSE WE NO HE THAT PEOPLE REALLY LIKE TO HAVE REPEATABLE PREDICTABLE EXPERIENCES. WE HAVE EVERYTHING FROM, YOU KNOW, VETERANS TO FOLKS THAT ARE PART — AFFECTED BY THE OPIOID CRISIS, CANCER PATIENTS TO DIRECT LEGAL USERS AND VARIES BY STATE. WE TAKE THAT RESPONSIBILITY OF ARE WE ALWAYS DOING THE RIGHT THINGS AT THE COMPANY TO PROVIDE THE BEST EXPERIENCE POSSIBLE? THAT’S THE MISSION. AND SO IT DOESN’T JUST COME FROM ME. IT COMES FROM MY OBLIGATION TO EVERYONE THAT WORKS HERE AND THEN THE OBLIGATION OF ALL OF US TO THIS MUCH BROADER DIALOGUE AROUND LEGALIZATION AND WHAT MEANS FOR THE DIFFERENT COMMUNITIES. SO WE’RE A SMALL PART OF THAT. AND TEN YEARS FROM NOW IN THE HISTORY BOOKS, IT WAS A MESSY SPACE. BUT THEY DID THE RIGHT THING. THAT IMPORTANT TO US.>>>LADIES AND GENTLEMEN, TAKE YOUR SEATS. THE PROGRAM IS ABOUT TO BEGIN.>>>LADIES AND GENTLEMEN, PLEASE WELCOME BACK TO THE STAGE, TECHCRUNCH SENIOR WRITER AND YOUR HOST, ANTHONY HA.>>HELLO, WILL BEING BACK TO THE START-UP BATTLEFIELD. WE’RE ABOUT TO START ROUND TWO. BY THE WAY, A COUPLE PEOPLE ASKED ME BACKSTAGE WHO IS THE PERSON THAT IS SHOUTING YEAH ALL THE TIME THAT, IS AN EDITOR AT TECHCRUNCH. JOHN, HOW ARE YOU FEELING?>>I’M SUPER EXCITED.>>HE’S SUPER EXCITED. I HOPE YOU ARE TOO. SO AGAIN WEESHGS GOING TO SEE FOUR START-UPS IN THIS SESSION. THEY WILL BE LASTING FOR SIX MINUTES. FIRST UP, WE HAVE KIM CUT LETTER WHO IS ONE OF THE SUCCESSFUL EXAMPLES OF TC TO VC. SHE IS A PARTNER AT INITIALIZE CAPITAL BEFORE. THAT, A JOURNALIST FOR TEN YEARS AT TECHCRUNCH, BLOOMBERG AND “THE WATHE “WALL STREET JOURNAL.” WE HAVE MANAGING CO-FOUNDER AT TALIS CAPITAL, THE CO-FOUNDER AND EXECUTIVE CHAIRMAN AT PIRATE STUDIOS. NEXT UP, FOUNDER AND MANAGING PARTNER AT DN CAPITAL. PREVIOUSLY PARTNER AT ADVEN INTERNATIONAL IN LONDON. WE HAVE FOUNDER AND CEO OF HOW PEOPLE WORK AND HANDLE BUSINESS OPERATIONS. SHE PREVIOUSLY FOUNDED ANOTHER COMPANY. NEXT, WE HAVE CITAR TELLY, FOUNDER AND MANAGING PARTNER OF CONNECT VENTURES WHICH INVESTED IN MORE THAN 40 COMPANIES ACROSS EUROPE. SO GIVE IT UP FOR ALL OF OUR AWESOME JUDGES. LET’S BRING OUT OUR FIRST START-UP PRESENTING FOR LORO OR JOE HAYSONG AND VANESSA KUNYA.>>THIS IS OUR FRIEND STEVE. HE WAS ADVENTUROUS. BUT HIS LIFE COMPLETELY CHANGES. AFTER HE WAS DIAGNOSED WITH THE ALS. NOW HE CANNOT TURN HIS HEAD. HE LOST HIS VOICE. AND PEOPLE WITH A PHYSICAL CHALLENGES HAVE LIMITED FIELD OF VISION AND DIFFICULTY WITH SIMPLE MOVEMENTS SUCH AS POINTING WHICH IS THE COMMUNICATION. AND STEVE IS NOT ALONE. THERE ARE MORE OF THE 17 MILLION PEOPLE IN A WHEELCHAIR WITH SIMILAR CONDITIONS LIKE STEVE. WITHOUT INDEPENDENCY AND SAFETY AND SOCIAL CONNECTIVITY. THIS IS A COMPANION FOR WHEELCHAIR USER LIKE STEVE. LET’S MOVE TO THE DEMO, PLEASE.>>HIGH-TECH CRUNCH.>>WE INTEGRATED SPEECH TECHNOLOGY FOR HIM TO SPEAK TO HIS FRIENDS. TO IMPROVE ACCESSIBILITY AND USABILITY. AS YOU CAN SEE, IT CAN BE MOUNTED ON THE WHEELCHAIR. IT’S ON THEIR SMART DEVICE. THERE IS 360 ROTATION AND FULLY CAPTURE THE SURROUNDINGS. NOW LORO AND VANESSA CONTROLLING LORO JUST USING HER EYES. OUR USER FRIENDLY INTERFACES ARE ALLOW THE USER TO USE FEATURES THROUGH A VARIETY OF DEVICES INCLUDING EYE TRICKING, TOUCH OF SCREEN AND HEAD MOUNT AND SO ON. MOVE TO SECOND DEVICE. IT IS HARD TO MOVE THEIR HEADS DURING THE CONVERSATION OR JUST TRACK THE MOVEMENT. SO WHEN HE SEES FRIENDS, LORO EASILY JUST FOLLOW AROUND AND KEEPING THE PERSON IN THE CENTER. THERE IS COMMUNICATION AND ALSO POINTING AND OFTEN IMPOSSIBLE. SO LASER POINTER FACILITATES INSTANT GESTURE OF COMMUNICATION. THIS IS A CONNECTED DEVICE. AS MORE USER ENGAGE WITH LORO, WE CAPTURE THE DATA AND THE WHEELCHAIR ACCESSIBLE NAVIGATION SYSTEM. AND LORE YOE WILL BE COMPARABLE WITH SMART HOME DEVICES. THROUGHOUT PARTNERS WITH NGOs, WITH HE CONDUCT THE INTENSE TESTING WITH MORE THAN 45 PEOPLE WITH A VARIOUS CONDITIONS. LORO BUILT FOR THE ENUSER FIRST. THEY EXPRESSED AND HELP THEM DRIVE MORE SAFELY AND COMMUNICATE MORE EFFECTIVELY. THERE ARE 40 PERSON OF FAMILY MEMBERS. EXPERIENCE THE BANKRUPTCY BECAUSE EXISTING ASSIST DEVICE ARE OUTRAGEOUSLY EXPENSIVE. OUR COMPETITORS ARE SOCIAL ROBOTS. OTHER ASSIST WITH DEVICE LIKE — BUT THEY ARE EITHER EXPENSIVE OR NOT DESIGNED FOR THESE ABILITY NEEDS. OR VERY LIMITED. IT EMPOWERS PEOPLE WITH DISABILITY. WE CREATE VALUES AND AFFORDABLE PRICE. OUR NICHE MARKET IS 11 MULLON PEOPLE. FROM ALS, MULTIPLE SCLEROSIS AND OTHER INJURIES. THEN WE EXPAND OUR MARKET TO PARKINSON, CEREBRAL PALSY, WHEELCHAIR MARKET WHICH IS 17 MILLION PEOPLE. BY CAPTURING THE FIRST MARKET, WE GENERATE 1.4 MILLION IN THE REVENUE, FIRST YEAR AFTER WE LAUNCH. THE FIRST PRODUCT IS 55%. WE ADAPTED THE B-TO-B MODEL THROUGH OUR PARTNERS AND WE HAVE NGOs, HOSPITAL, INSURANCE COMPANY AND WHEELCHAIR COMPANIES. THIS WILL BE MANUFACTURED AND SUPPLIED TO PART OF PATIENCE THROUGHOUT PARTNERS. LORO ALSO WILL BE AVAILABLE FOR $500 PER UNIT AND $10 FOR MONTHLY SUBSCRIPTION FEE. PARTNERS INCLUDING ALS ASSOCIATION, MASSACHUSETTS GENERAL HOSPITAL AND THEY’RE HEAVILY CONNECTED IN OUR INDUSTRY. ALSO WE HAVE STRONG NETWORK OF OUR MENTOR FROM VARIOUS BACKGROUND, ESPECIALLY THE FOUNDER OF ALS ICE BUCKET CHALLENGE. OUR TEAM WAS FOUND FOR A PLACE FOR INNOVATOR AND ENTREPRENEURS WITH GREAT RESOURCES. LORO WILL GIVE PEOPLE WITH A PHYSICAL CHALLENGE TO CONNECT AND CONTROL AND COMMUNICATE WITH THE WORLD. GO TO LORO XYZ.>>ALL RIGHT. ALL RIGHT. JUDGES?>>SO I HAVE A QUESTION. WHAT IS THE BIGGEST USE CASE OF THE PATIENT ACTUALLY USING THE WHEELCHAIR AND HOW INTEGRATED DOES THE TECHNOLOGY WITH THE ACTUAL FUNCTIONING OF THE WHEELCHAIR?>>THE FIRST USE CASES WE — IT’S GOING TO BE CAMERA. WHEN THEY TRY THE WHEELCHAIR, MOST OF THE WHEELCHAIR USERS ARE AFRAID OF GOING OUT BECAUSE NOT JUST AFRAID OF BEING HITTING BY CAR BUT ALSO RUNNING OVER SOMEONE ELSE’S TOE OR SOMEONE BEHIND. SO GIVING THEM A FULL VO SURROUNDING VISION GIVES THEM MORE INDEPENDENCE AND LET THEM GOING OUT TO — >>AND USING THE TECHNOLOGY INSIDE THAT THEN?>>YEAH.>>CAN YOU TALK ABOUT THE PROGRESS TO DATE LIKE THE INSURANCE COMPANIES AND HEALTH ORGANIZATIONS? YOU KNOW, HOW — DO YOU HAVE ANY INITIAL PARTNERSHIPS OR LETTERS OF INTENT CURRENTLY?>>THE TWO PARTNERS I MENTIONED ALS ASSOCIATION AND MASSACHUSETTS GENERAL HOSPITAL ARE EXPRESSING REAL WHY I HIGH INTEREST ON PREORDERING OR PROVIDING PATIENTS FOR THE TESTING. AND WE ARE WORKING ON FINALIZING AGREEMENT. BUT WE’RE STILL IT’S ON GOING. >>OKAY.>>MY QUESTION AND SOCIAL IMPACT SOUNDS AMAZING. CONGRATULATIONS. ON THE COMPETITION, YOU MENTIONED COMPETITION. SO ARE YOU THE BEST OR THE CHEAPEST OR WHERE DO YOU FIT INTO THAT?>>I WOULD LIKE TO BELIEVE THAT WE ARE BOTH. BECAUSE WE INTEGRATE LIKE SEVERAL TECHNOLOGIES REAL WHY I HIGH PRICE FOR THE OTHER ONES. BUT WE SINGLE ONE DEVICE THEY HAVE LIKE REALLY USER FRIENDLY DEVICE. AND WITH ALL THE FEATURES THEY NEED. SO WE’RE CHEAPER AND WE INTEGRATE EVERYTHING THEY NEED. OTHERWISE, THEY’LL HAVE TO BUY SEVERAL DEVICES.>>I HAVE A QUESTION. SORRY, MY VOICE. ON THE PRICE. SO WHAT IS THE PRODUCTION STRATEGY? WHERE DO YOU PRODUCE? AND FROM MY POINT OR MY EXPERIENCE IN THE HARDWARE BUSINESS THAT, WAS MY PREVIOUS COMPANY, CONGRATULATIONS THAT YOU ARE BRAVE ENOUGH TO ENTER THAT PACE. THE TRICKY PART IS THE PRODUCTION IN THE FIRST STEP. YOU NEED TO PRODUCE A HIGH QUANTITY TO ACHIEVE THIS PRIZE. AND YOU NEED TO — DISTRIBUTION PARTNER WHO GIVES YOU THE QUALITY — YOU CAN’T APPROVE THE QUALITY. SO HOW DO YOU THINK ABOUT THAT?>>WE HAVE BEEN CONTACTED TO FIRST LOOK UP MANUFACTURING COMPANIES BECAUSE THE FIRST ROUND IS GOING TO BE LOW NUMBER OF UNIT. AND THEN WE — AFTER WE LAUNCH OUR PRODUCT, WE CAN TALK TO — WE CAN TALK TO ANOTHER BIGGER MANUFACTURER COMPANY TO INCREASE THE MARGIN OF OUR PRODUCT.>>HOW YOU ARE CHEAPER THAN THE OTHERS? HOW ARE YOU DOING THAT THEY ARE?>>YOU SAID YOU’RE CHEAPER THAN THE OTHERS. HOW ARE YOU CHEAPER? WHY ARE YOU CHEAPER?>>THE DEVICES ARE AROUND $3,000 EACH. SO WHAT WE ARE OFFERING IS LIKE $500. THIS PRICE IS ALSO LIKE THE MAXIMUM AMOUNT IS $1,000. WE RESEARCH WITH OUR PATIENTS AS WELL HOW IT’S SUPPORTABLE FOR THEM TO PAY.>>I KNOW. BUT — >>JUST TO ADD TO THE QUESTION, THE REASON WE ARE CHEAPER THAN OTHER TECHNOLOGY IS BECAUSE OUR INNOVATION IS COMING FROM THE INTEGRATION. THEN INVENTING THE NEW TECHNOLOGY. SO, YEAH.>>WHAT ARE YOUR BACKGROUNDS?>>I’M COMING FROM ARCHITECTURE AND DESIGN. I’M A BIOMEDICAL ENGINEERING. >>OKAY.>>AND WHO DOES ALL THE BUSINESS DECISIONS ON YOUR TEAM WHEN YOU GO TO MARKET STRATEGY?>>UNFORTUNATELY, HE’S NOT COME WILLING TODAY. BUT WE HAVE A BUSINESS EXPERT IN OUR TEAM.>>OKAY.>>HAVE YOU THOUGHT ABOUT ANY INTEGRATIONS WITH INSURANCE COMPANIES?>>YEAH.>>DO YOUR COMPETITORS DO THAT ALREADY?>>YEAH. WE’RE VERY EARLY STAGE. AND WE JUST START TALKING TO ONE OF THE INSURANCE EXPERTS. AND THEN WE HAVE HEARD THAT WE HAVE HEARD THAT WE MIGHT BE ABLE TO COVER BY INSURANCE.>>AND YOUR COMPETITORS, ARE THEY COVERED BY INSURANCE IN WHICH EVER MARKET?>>START WE START WITH ALS.>>I MEAN THE COMPETITORS, THAT YOU TALKED ABOUT, ARE THEY ON INSURANCE? CAN YOU GET THEM THROUGH INSURANCE?>>HE YSHGS IT DEPENDS ON THE COVERAGE.>>HOW ADVANCED ARE THE WHEELCHAIR — OBVIOUSLY CARS, WE NOW HAVE TESLA AND AUTONOMOUS CARS. THAT IS AN OLD WHEELCHAIR, YOU KNOW, SHORT OF BASIC. HOW ADVANCED IS THE WHEELCHAIR TECHNOLOGY GETTING? IS IT TO THE POINT WHERE I SAY I WANT TO GO THERE. WHO IS LEADING THAT SPACE? ARE YOU WORKING WITH THEM? OBVIOUSLY ALS, IT GOES VERY QUICKLY. A FRIEND OF HAD IT. HE PASSED AWAY IN TWO YEARS. WAS VERY, VERY SAD TO HEAR ABOUT IT. I KNOW HOW DRAMATIC THAT CAN BE. BUT THEY CAN’T DO ANYTHING WHEN THEY GET THIS.>>TRUE. ZBLFR ANSWER QUICKLY.>>OH, YEAH. FIRST OF ALL, WE TRY TO GET THE POWER WHEELCHAIR. OUR FIRST MARKET IS USING MOSTLY USING POWER WHEELCHAIR. BUT I DON’T THINK IT’S A SELF DRIVING WHEELCHAIR. IT’S NOT REALLY COMMERCIALIZED YET. BUT THE POWER WHEELCHAIRS ARE CONTROLLED BY THE USER WITH THE JOYSTICK OR EVEN THE USER EYE TRACKING TO CONTROL.>>OKAY.>>THANK YOU.>>OKAY. GIVE IT UP FOR LO RO!>>LET’S BRING OUT OUR NEXT COMPANY, SPIN ANALYTICS.>>HELLO, BERLIN.>>TEN YEARS AGO FEW PEOPLE WERE THINKING ABOUT RISK OR RELATIONS. TODAY CREDIT THIS — HAS BECOME A MAJOR PRIORITY IN THE WHOLE BANKING INDUSTRY. BANKS USE THOUSANDS OF MODELS THAT ARE DONE MANUALLY. THE ONCH QUOTE IS AT LEAST HALF A MILLION. WE HAVE BEEN DEVELOPING PRODUCTS FOR YEARS. HE WAS THE GROUP HEAD OF CREDIT SUISSE ANALYTICS FOR 25 YEARS. WE HAD A RISK AND IT IS GLOBAL. THIS ROBOT COMPLETELY AUTOMATES THE MANUAL PROCESS OF DEVELOPING AND VALIDATING A REGULATORY BANKING MODELS. LET ME SHOW YOU HOW THIS WORKS. FIRST, WHEN JUST ANY KIND OF BANKING DATA, THEN THE MACHINE AUTOMATICALLY APPLIES ALL THE BANKING REGULATIONS LIKE BASUL 3, CCL AND THEN IT AUTOMATICALLY DEVELOPS A MODEL AND THE MODEL RECOMMENDATION. YOU CAN START THE GLOBAL. THERE ARE HUNDREDS OF APPLICATIONS AROUND THIS WHICH WE ARE CALLING SAT LIME APPLICATIONS. THIS IS AN EXAMPLE OF THE CORPORATE PORT FOAFOLIO WHERE W HAVE FINANCIAL AND NONFINANCIAL DATA, BEHAVIORAL DATA. WE DEVELOP A MODEL IN OURS AND NOW THEY’RE PRESENTING US THE UI IN HOW THIS HAPPENS AND THE PROJECTIONS ABOUT THE CREDIT WORTHINESS OF A SPECIFIC COMPANY. PLEASE CONTINUE. THIS HELPS THE RATING OF THE COMPANY. MOVE BACK TO THE DEMO, PLEASE. CAN I SEE MY DEMO PLEASE? YEAH, HERE. STAY THERE. HELLO, BERLIN. THIS WAS AN EXAMPLE OF A VERY FAST AUTOMATION. LET’S MOVE BACK TO THE PRESENTATION, PLEASE. YES. SO THIS IS A GAME CHANGER FOR THE WHOLE BANKING INDUSTRY. YOU USE THE TIME BY 95% AND UP TO 70% LESS AN WORKS GLOBALLY. OUR COMPETITORS, THEY STILL USE MANUAL JOB AS THE BANKS. SO WE’RE FASTER. WE ARE CHEAPER AND SMARTER. THIS IS A PRICING MODEL. WE START WITH HUNDREDS OF THOUSANDS PER CLIENT, PER YEAR THAT GOES TO MILLIONS FOR FULL LICENSE. MICROSOFT, CLOUD, EMPHASIS ALL ANNOUNCE BIG PARTNERSHIPS WITH SPIN AN LIKTS. BECAUSE WE ARE INCREASING THE CLOUD CONSUMPTION. WE STARTED FROM THE WEST AND WE’RE MOVING TO THE EAST AND WE JUST OPENED OUR NEW OFFICE IN SINGAPORE. AND THIS IS LIVE. WE HAVE SIX BANK CUSTOMERS, 20 PILOTS AND THREE COULNTINENTS A I’M PLEASED TO ANNOUNCE THAT THE OPEN INNOVATION AND BANKING INNOVATION AGREED AFTER PILOT PROCESS WHERE THIS GLOBAL DEVELOP EIGHT MOD LDZ IN TEN WORKING DAYS WHEN USUALLY SIX MONTHS FOR ONE. GLOBAL IMPLEMENTATION FOR 35 COUNTRIES. SO WE HAVE A GREAT TEAM, AMAZING PRODUCT AND A REAL PLAN. WE ARE GOING TO BE IN THE TOP 35 BANKS BY 2020. SKY IS THE LIMIT. JOIN US!>>JUDGES?>>YEAH. SO I HAVE A QUESTION.>>OF COURSE.>>WE ARE IN A SIMILAR SPACE. I FOR AUTOMATING CLAIM HANDLING AND YOU SAID WE COMPLETELY AUTOMATE THE PROCESS. I’M INTERESTED IN THE CONFIDENCE CORE, THE REEFRP AND HOW DO YOU THINK ABOUT WHAT THE THRESHOLD IS AND IF — IS THERE ANY MAN IN THE LOOP.>>ANY MAN IN THE LOOP? SO WHAT IS THE CONCEPT AROUND THIS?>>YES. SO YOU’RE TALKING ABOUT THE MODELLING.>>YEAH.>>OKAY.>>SO THIS IS A BIG DEAL. THESE ARE BEHIND A PRODUCT LIKE A CREDIT CARD AUTO LOAN, WHATEVER. AND WHEN THERE IS AN COMPLICATION, SOMEBODY SENDS THE DATA INSIDE AND PRESENTER. THE MODEL IS ON. THESE USUALLY, THIS MODEL TAKES MONTHS TO DEVELOP. THEY HAVE LIMITATIONS ON THE DAT YAC DATA. THIS AUTOMATES THE PROCESS. IT WILL COMMUNICATE WITH HIS I.T. UT WILL RECEIVE DATA. ACTUALLY THEY WILL CLEAN THE DATA. THIS TAKES WEEKS. AND THEN HE WILL RUN THE MODELLING PROCESS THAT HE KNOWS. THIS MEANS THAT TAKES SIGNIFICANT TIME. BUT DOESN’T MEAN THAT IS CORRECT. HE IS A PERSON AND HE KNOWS A COUPLE OF THINGS. THE SYSTEM HAS MORE THAN 200 — AND IT IS OPTIMIZED TO AVOWED OVERFITTING. THAT IS ONE METRIC. EVEN IF YOU HAVE A HIGH ACCURACY DOESN’T MEAN IT WORKS THE NEXT YEAR. IF IT DOESN’T WORK NEXT YEAR, THAT MEANS IT’S THE WRONG PORTFOLIO. A TOO BIG TO FAIL BANK WILL FAIL.>>I HAVE A FOLLOW UP QUESTION. YOU TALK ABOUT ON PREM. HOW CAN YOU ACCESS THE IMPROVED MODELS TO GET BETTER OVER TIME?>>I GUESS MOST OF THEM WANT TO HAVE IT ON PREM.>>IT’S THE SAME PROCESS. IT DOESN’T MATTER ACTUALLY. IT IS THE DATA BASE IN THE CLOUD. SO WE CONNECT EVERY LOAN PORTFOLIO WITH ONE ACCOUNT AND THIS IS DONE ONCE. ONE DAY. AND THAT’S IT. THEN EVERY DATA THAT COMES FROM INSIDE THE BANK, DEM GRAPHICS, SOCIAL, DIFFERENT DATA, EXTRA DATA, WE’RE NOT A DAT KRA COMPANY. THIS AUTOMATICALLY UPDATES THE MODEL EVERY MONTH OR WHENEVER THEY UPDATE THE DATA BASE. THIS MEANS THAT A NOT WILL IS ALREADY CAP CALIBRATED. THIS HAPPENS EVERY 12 MONTHS. >>IS YOUR BUSINESS MODEL TO GO AFTER BANKORS JUST START-UP THAT’S WOULD LIKE TO HAVE THE RISK MODEL FASTER SNP. >>THIS APPLIES TO EVERYONE. WE STARTED FROM THE GLOBAL BANKS. WE FOLLOW THE GLOBAL REGULATIONS. THE OBLIGATION SAYS THAT, OKAY, YOU HAVE TO DEVELOP THE MODEL TO DAY AND YOU HAVE TO VALIDATE IT ON GOING EVERY YEAR AFTER UNTIL YOU GET RID OF THE PORTFOLIO. THIS COSTS MILLIONS. WE STARTED FROM THERE BECAUSE THERE IS A HUGE ATTRACTION THERE. WE HAVE MORE THAN 100 BANKS. WE JUST CLOSE ONE PILOT YESTERDAY WITH STANDARD START-UP IN LONDON. IT CAN BE APPLIED TO THE CHALLENGER BANKS WHERE THEY DON’T HAVE THE TEAMS. BUT THEY NEED THE TECHNOLOGY. AND THEY CAN BE APPLIED TO ANY LENDING OR LOAN BUSINESS. IF THEY HAVE DATA, THEY CAN DEVELOP IT. IF THEY HAVE THE DATA, WE CAN DEVELOP A GENERIC MODEL VERY FAST. THEY CAN DEVELOP THE SYSTEM. AND THEN AS THEY INPUT MORE DATA, THE MODEL IS UPDATED AUTOMATICALLY. AND THE RECOMMENDATION WHICH IS THERE FOR REGULATORS. THE RECOMMENDATION TAKES TWO MONTHS TO BUILD AND HERE IT TAKES THREE HOURS.>>WITH THE BANKS, ARE THEY RUN RUNNING THE SOFTWARE ON THEIR SERVERS OR CLOUD?>>IT’S SECURE.>>CAN YOU TALK ABOUT HOW YOU DEVELOPED YOUR PRICING MODEL AND THEN OF THE SIX INITIAL BANK PARTNERS THAT YOU HAVE, ARE THOSE PILOTS? HOW WOULD THE CONSIDER VALUE CHANGE OVER TIME IF THE PILOTS CAN CONVERT INTO SOMETHING LONG TERM?>>WE HAVE A PRICING MOD WHICH WILL IS LIMITED IN THE LIMITED VERSION. THE FULL VERSION MEANS THAT YOU BUY THE SOFTWARE. YOU DEVELOP OR VALIDATE AS MANY MODELS AS YOU WANT. AND THIS MEANS THAT IF YOU ARE A BANK LIKE THIS, THEY HAVE 1,000 MODELS, 35 COUNTRIES. THAT MEANS SCALEABILITY. THEY CAN DO THAT UNLIMITED. AND THIS IS A FLAT LICENSE FEE PER YEAR. IT’S ON GOING. IF THEY CHOOSE THE LIMITED VERSION, THIS MEANS THEY BUY A LICENSE FOR THE LIMITATION AND THEN A PACKAGE OF MODELS WHICH IT IS AGAIN A COST PER MODEL AND THIS IS GETTING COST PER PACKAGE OF MODELS. WE SHOW THAT WE IDENTIFY THAT THIS MODEL WORKS FOR THE BAFRMGS BE — BANKS. THEY UPGRADE THAT. AND THEY DEVELOP THE MODELS.>>YEAH. I WANT TO AS THE SAME THING. SO YOU SAID THERE IS A MANUAL HOW THE DATA FIRST IT’S AUTOMATED.>>YES.>>SO CAN YOU GO DEEPER INTO IT? WHAT IS THE DATA LOOK LIKE?>>YES.>>SO THESE ARE TRANSACTIONAL DATA FROM THE BANKS FROM THE LOAN PORTFOLIO. SO WHEN SOMEONE IS THIS IS THE DATA THEY HAVE. THEY’RE ALREADY BIASSED IN A WAY. FOR THIS MODELLING, THEY HAVE LIMITATIONS. SO THE MODEL, THE EXPERT, THAT MEANS HE IS SOMEONE WITH A BIG EXPERIENCE IN THE BANK. HE HAS TO TAKE ASSUMPTIONS BASED ON THE REGULATIONS AND BUSINESS TARGETS. THESE ASSUMPTIONS ARE NOT — THERE IS NOT A BIBLE, YOU KNOW THE ASSUMPTIONS. IT UNDERSTANDS THE DATA AND TAKES THE ASSUMPTIONS IN THERE AND WRITES THAT RECOMMENDATION AND CREATES THE FINAL DATA SAM THAM IS BASED ON THIS SPECIFIC DATA SET.>>YOU’RE NOT DEALING WITH PAPER AND EXTRACTION OF PAPER?>>NO. THE BANK ALREADY HAS THE DATA. BUT THEY CANNOT — MORE DATA SOURCE. THEY ARE GOING TO HAVE THE COUNTER AND THEY DON’T HAVE ENOUGH DATA. THEY BUY THE TATA BASE. WHO KNOWS WHAT IS CORRECT FROM THERE. THEY HAVE TO TAKE ASSUMPTIONS. WE DO THAT WITH THE SYSTEM NOW.>>ALL RIGHT. WE’RE OUT OF TIME. SO ONE MORE ROUND OF APPLAUSE FOR SPIN ANALYTICS.>>LET’S BRING OUT OUR NEXT GUESTS.>>THANK YOU. CITIES PROVIDE A VAST VARIETY OF SERVICES TO THE CITIZENS ON A DAILY BASIS. ROADS AND INFRASTRUCTURE, PARKS, PUBLIC EDUCATION, OR HEALTH JUST TO NAME A FEW. MEDIUM SIZE CITY SPENDS UP TO $100 MILLION PER YEAR JUST ON ALL THE SERVICES. BUT WHEN IT COMES TO DECISION MAKING, LOCAL GOVERNMENTS ARE IN THE DARK. AND ALTHOUGH CITIES COLLECT A LOT OF DATA ABOUT THEMSELVES, IT’S JUST NOT AVAILABLE TO CITY LEADERS. THE PROBLEM IS THE DWRAT IS STRAPPED. CITIES IN MANY DIFFERENT LEGACY SYSTEMS, SOMETIMES DATA SCATTERED ACROSS FILES WHICH EXISTS ON PAPER. IT TAKES A LOT OF TIME AND EFFORT TO AGGREGATE THAT MANUALLY. AND IT COSTS THE CITY A MEDIUM SIZE ONE UP TO 100,000 EUROS PER YEAR ON THE MAN YOU’LL DATA PROCESSING ALONE. WE SOLVE THAT PROBLEM. WE TAKE DATA AND PROVIDE INSIGHTS ACTIONABLE TO GOVERNMENTS TO RUN THE GOVERNMENTS AND REACH THEIR GOALS. THE PLATFORM IS MODULAR AND THE MOST IMPORTANT CITY SERVICES. RANGING FROM CHILDCARE TO FIRE DEPARTMENTS UP TO INFRASTRUCTURE. LAST MONTH WE LAUNCHED OUR FIRST PROUD MODULE IN THE FIELD OF CHUL CARE. THIS HELPS CITY LEADERS CAN TRACK THE PERFORMANCE, OPTIMIZE THE COSTS OR DEMAND THE FORECAST OVER THE NEXT YEARS. BUT LET ME EXPLAIN IN DETAIL HOW A CLIENT USES A PRODUCT IN REALITY. FOR THAT, LET ME INTRODUCE YOU TO HEAD OF CENTRAL SERVICES OF THE CITY. MIKE WANTS TO PREPARE FOR THE NEXT CITY COUNCIL SESSION. THE TOP SICK CHILDCARE. THERE ARE MORE THAN 300,000 CHILDREN THAT AREN’T ABLE TO GET A SPOT IN THE LOCAL KINDERGARTEN TODAY. SO HOW MANY SPOTS ARE AVAILABLE? WILL OUR SPOTS BE SUFFICIENT NEXT YEAR? AND DO WE HAVE TO BUILD ANY FACILITY? INSTEAD OF REQUESTING REPORTS FROM DIFFERENT DEPARTMENTS, MIKE JUST LOGS INTO THIS. AND THE GRAPH ABOVE HE SEES THAT THE UTILIZATION RAUT HAS GONE UP, HE CONTROLS DOWN TO THE TABLE BELOW, AND HE DETECTS THAT SOME OF THE FACILITIES HAVE GONE ABOVE THEIR CAPACITY. HE WANTS TO CHECK WHICH AREA OF THE CITY HAS THE WORST RATE. MIKE SWUCHS TO THE FORECAST. ALREADY NEXT YEAR HE SEES THAT THE WORK WILL HIT THE CRITICAL POINT WHEN DEMAND WILL EXCEED THE AVAILABILITY SPOTS. EVEN WORSE, IN FOUR YEARS FROM NOW, THERE WILL BE AS MANY AS 230 SPOTS MISSING. TOGETHER WITH THE MAYOR AND TREASURER, THEY BUILD A NEW FACILITY. SO HOW DO WE MAKE THAT HAPPEN? THE DATA BREECH IS A STAND ALONE SOFTWARE THAT IS INSTALLED ON THE CLIENT SERVER. THEY CONNECT TO THE DATA BASES AND RUN JOBS AND QUERIES ON DAILY BASIS. IF IT IS IN RAW FORMAT, NO PROBLEM. WE DIBLGTSIZE IT AS A SERVICE. THEY CAN PROVIDE AUTOMATIC INTEGRATION TO ALL SYSTEMS. CONSULTANT DELIVER THE EXPENSIVE FREE PORTS AND THE STARTUPS, THEY CAN’T MEET EUROPEAN LOCALIZATION REQUIREMENTS. WE COVER ALL OF THAT. THERE ARE THREE PRODUCTS THAT USE OUR PRODUCT FOR DECISION MAKING. IT IS YOUNG AND HAS HIGH POTENTIAL IN EUROPE. OUR PRODUCT LIES AT THE INTERSECTION OF LOCAL GOVERNMENT, IT AND CONSULTING AND HAS AN ANNUAL VALUE OF 1.6 IT BILLION IN THE EUROPEAN UNION AS A MARKET SIZE. STARTING IN GERMANY, WE WANT TO SCALE SOON TO OTHER EUROPEAN MARKETS. WE DO THAT BY FIRST RUN REG REGIONALLY DISTRIBUTED TEAMS TO CONVINCE THEM ON SITE WITH THE MODULE LAR PRICING TO BRING THEM BELOW THE TLESH HOLDS AND, OF COURSE, WE SCALE THROUGH POLITICAL NETWORKS AND SOCIAL PROOF. OUR BUSINESS MODEL IS BASED ON ONE TIME SETUP FEE AND ANNUAL LICENSE FEES. THE SETUP FEE IS BASED ON THE NUMBER OF INTERGRACTIONS TO THE SEGCY SYSTEMS AND IT IS BASED ON MODULES AND INHABIT TANTS COUNT. OUR TEAM COMBINES THE BEST TWO OF WORLDS. THIS HE HAVE 15 YEARS OF EXPERIENCE IN BUILDING DIGITAL PRODUCTS. WE’RE SUPPORTED BY SUCCESSFUL ENTREPRENEURS AS INVESTORS AND PUBLIC REPRESENTATIVES AS ADVISORS. OUR VISION IS THAT CITY LEADERS ACROSS EUROPE MAKE DATA AND POWER DECISIONS IMPROVING THE LIVES OF MILLIONS OF THEIR CITIZENS. CREATE A MORE EFFICIENT AND EFFECTIVE GOVERNMENT TODAY. GO TO OUR WEBSITE. THANK YOU VERY MUCH.>>OKAY. JUDGES.>>I’LL GO. SO WE INVESTED IN A COMPANY CALLED LAGIN, GOVERNMENT CRM. AND WE EVENTUALLY SOLE THAT A COUPLE YEARS AGO. ONE OF THE ISSUES WITH SELLING INTO THE SECTOR IS THE SALES CYCLE. TAKES A LONG TIME. THEY’RE VERY SKEPTICAL. YOU NO HE WHAT I’M TALKING ABOUT. DO YOU HAVE — WHAT IS YOUR GO TO MARKET STRATEGY? WHAT IS YOUR PARTNER STRATEGY?>>I CAN ANSWER THAT. GO TO MARKET STRATEGY IS BASED AND REPRESENTED. WE DO IT POLITICALLY BECAUSE THE BIGGEST DRIVER IS SOCIAL PROOF. ONE CITY IN A CERTAIN REGION IS A CHAMPION AND BOUGHT OUR PRODUCT. YOU HAVE ONE EXAMPLE AND WE GET ONE LEAD AND THEY INVITE TEN OTHER CITIES TO THE MEETING TO SAY THIS IS HOW WE DO IT. WE PARTNER UP WITH VERTICAL THAT’S CAN DELIVER DATA AND PROFIT THAT THEY ARE BASICALLY SHOWN ON THE PLATFORM, THE DATA. AND WE DO THAT WITH END TO END SOLUTIONS. WE HAVE THE RICHEST DATA BASE THERE. IS IT SELF SERVE? I CAN SEE SOMETHING DOESN’T GO WELL. IS IT FULLY MANAGED?>>WHAT WE SUPPORT THEM, OF COURSE. WE ALSO EDUCATE THEM HOW TO USE IT. IT IS DEFINITELY SELF MANAGEABLE. BUT WE’RE ALWAYS THERE TO HELP THEM. THE ISSUE IS ALSO THAT GOVERNMENTS ARE NOT REALLY PERFORMANCE DRIVEN YET. THEY DON’T CHECK THE DATA. IT IS QUITE NEW THINGO THEM. ALSO PARTNER WITH THE MOST INNOVATIVE CUSTOMERS. THEY SHOW IT TO US THEMSELVES. AND THAT’S ONE OF THE CHALLENGES TO THIS PARADIGM, TOIC MA IT MORE BASED ON DECISIONS. DO YOU TRACK REMOTELY THE USAGE?>>WE CAN SEE THE USAGE IF THEY USE IT. WE DON’T GO INTO DETAILS OF THE DATA THAT THEY REQUEST. BUT WE TALK TO THEM BASICALLY WEEKLY. WE ALSO FOLLOW UP. WE DO EXTENSIVE USER RESEARCH. WE CONTINUE WORKING WITH THOSE CITIES THAT WE ALREADY HAVE ONBOARD BECAUSE WE DEVELOP NEW MOD ULZ FOR THEM. SO NEXT MODULE IS SCHOOLS AND FOR THAT WE TALK WITH THEM.>>SORRY.>>CAN YOU TALK ABOUT THE INITIAL SETUP PROCESS? I MEAN WHAT IS THE PRICE POINT THAT YOU NEED TO GET TO BYPASS THE RFP PROCESS AND THEN HOW DO YOU CONVERT THAT INITIAL PRICE POINT TO THE LONG TERM LICENSING FEE AND WHAT KIND OF PROVE SES DO YOU USUALLY HAVE TO GO THROUGH FOR THAT?>>WHEN I GOT A RIGHT, THE THRESHOLD?>>RIGHT.>>IT DEPENDS ON THE CITY’S BUDGET AND CONSTITUTION. IT RENDERS BETWEEN 10 K AND 20 K ON THE CONTRACT SIZE. THE LOWEST IS THREE TO FOUR K PER YEAR. AND A FEE OF 5,000, FOR EXAMPLE. IT DEPENDS ON THE LENGTH OF CONTRACT, OF COURSE. THEN YOU GET INTO A CYCLE. USUALLY THEY CAN USE LAWS IN EUROPEAN UNION IF YOU HAVE AN INNOVATIVE PRODUCT AND THEY CAN USE A PARRA GRAPH TO PROCURE UT IT WOULD A LONG CYCLE BASICALLY.>>CAN YOU ALSO TALK ABOUT WHAT IT TAKES IN TERMS OF MANPOWER TO SERVE EACH INITIAL CONTRACT? BECAUSE THERE’S, YOU NO HE, PART THAT IS MORE AUTOMATED AND THEN THIS ALSO MORE CONSULTANCY TYPE OF STRUCTURE WHERE YOU HAVE TO CLEAN THE DATA.>>YEAH. >>SO FOR CLEANING THE DATA, THE BUDGETS — THE MAIN DATA THAT OVERARCHES THE GOVERNMENT SERVICES BUDGET, PERNSONNEL DAT, IT IS CLEANED AND WELL WELL MAINTAINED. SO THE MODULE IS RELATED SOFTWARE LIKE CHULD CARE SOFTWARE. THERE WE SEE SOME ISSUES IN DATA AND DIFFERENT CITIES IT’S DIFFERENT. AND ALSO THE THEY TRACK THINGS DIFFERENTLY. SO WE NEED TO SUPPORT THEM. ALSO WE TELL THEM THAT OUR INSIGHTS ARE AS GOOD AS YOUR DATA. SO WE ALSO ENCOURAGE THEM TO TAKE BETTER CARE OF THE DATA IN THEIR SYSTEMS.>>I HAVE A FOLLOW UP QUESTION TO THAT. SO YOUR SOFTWARE SITS ON TOP OF THE DATA BASE. HOW GOOD ARE CITIES THAT CAPTURE DATA? BECAUSE IT’S GARBAGE IN AND GARBAGE OUT IF THEY’RE NOT.>>WELL, THEY HAVE TO REPORT TO THE OTHER INSTITUTIONS. FOR EXAMPLE, CITIES REPORT TO COUNTIES. OF COURSE, THEY HAVE TO PROVIDE REAL NUMBERS. THE NUMBERS ARE PROVIDED BY, FOR EXAMPLE, IN CHILDCARE YOU, CHILDCARE FACILITIES, WE REPORT TO THE CITY. THEY REVIEW THE NUMBERS. THEN THEY SEND IT TO THE COUNTY. SO IT IS A REVIEWED PROCESS.>>OKAY:>>YOU MENTION THAT IN COMPARISON TO YOUR COMPETITORS, YOU CAN ACCESS ALL SYSTEMS THAT SOUNDS AWESOME TO ME. YOU HAVE TO TALK ABOUT THIS. AND IS GDPR A PROBLEM FOR YOUR DATA BRIDGE? ZBLFR I’LL ANSWER THAT QUICKLY. THE COMPETITORS ARE MAINLY THE CLOSEST COMPETITORS ARE BUDGETS SOFTWARE BECAUSE THEY HAVE THE HORIZONTAL VIEW ON THE CITY. BUT THEY ARE BASICALLY TRAPPED IN THE VERTICAL. SO THEY HAVE PRODUCTS THAT ALSO USE SOME KP FROM OTHER DATA SOURCES BUT IT IS ALWAYS MANUAL INPUT. AND THE SEC QUESTION IS ABOUT GDPR. THAT IS THE FIRST THING WE DID WITH OUR CONTRACT FIRST AND BASED ON ALL PARRA GRAPHS. SO IT’S A LONG ATTACHMENT LIST. AND ALSO THE DATA BRIDGE AND ON THE SERVICES. AND WE REACHED THE DATA THAT WE GET IS NOT PERSONAL.>>BUT YOU CAN USE THE DATA YOU GET TO IMPROVE THE MODELS? SORRY?>>YOU CAN — CAN YOU USE THE DATA — SO WHAT IS HAPPENING IN THE IP TO GET BETTER AND BETTER? WHAT IS THE CONCEPT AROUND THE IP?>>IF I UNDERSTAND YOU CORRECTLY, WE DO HAVE TO RECLAIM DATA. WE CAN SEE THE DATA AND IN THE FUTURE WE’RE USING IT FOR EXTENSIVE FORECAST FOR EXAMPLE FOR THE BUDGETS FOR THE DEM OG IF I OR IN PARTICULAR IN CHILD K CARE. THAT CLEAN DATA WE CAN USE AND THE TEAM OF DATA CENTERS WILL BE WORKING ON THAT.>>COOL.>>THAT WILL BE THE NEXT STEP FORWARD.>>OKAY. ALL RIGHT. GIVE IT UP FOR POLATEA! WE HAVE ONE FINAL START-UP IN THIS ROUND. THAT START-UP IS GRAVITY EARTH. WE HAVE JOHANAS AND PAUL.>>TODAY ONE BILLION PEOPLE ARE UNABLE TO PROVE WHO THEY ARE. THIS PREVENTS THEM FROM ACCESSING ESSENTIAL SERVICES. IMPOSSIBLE TO BUY A SIM CARD OR OPEN A BANK ACCOUNT. IMPOSSIBLE TO ACCESS CHILD BENEFIT IF YOU CANNOT PROVE THE NUMBER OF CHILDREN THAT LIVE IN YOUR HOUSEHOLD. AND VERY DIFFICULT TO FIND A JOB IF YOU CANNOT PROVE YOUR ACADEMIC AND PROFESSIONAL RECORD. THE INFORMATION IS OUT THERE FOR EVERYONE. IT EXISTS IN MEMORIES OF THE MEMBERS OF THE COMMUNITY AND IT EXISTS IN THE EXCEL SHEETS AND DATA BASES OF ORGANIZATIONS. COUNTY GOVERNMENTS AND SAVINGS GROUPS. THIS DATA CAN RELIABLY PROVE YOUR AGE, YOUR CREDIT WORTHINESS AND MUCH MORE. IF ONLY IT WAS ALL IN ONE PLACE AND UNDER YOUR CONTROL. INTRODUCING GRAVITY. A SELF SERVING DIGITAL IDENTITY WALLET THAT ALLOWS EVERYONE TO BUILD A TRUSTED IDENTITY PROFILE BASED ON VERY PERSONAL DATA. YOUR PEERS, THE ORGANIZATIONS THAT HOLD INFORMATION ABOUT YOU CAN SUBMIT AND VALIDATE CREDENTIALS. EVERYBODY REINFORCES YOUR PROFILE AND YOU DECIDE WHICH PART YOU WANT TO SHARE. THIS IS BUILT FOR STRONG COMMUNITIES AND WEAK INSTITUTIONS WHERE SOCIAL VALIDATION HAS LONG BEEN USED TO ESTABLISH IDENTITY. IT IS MAX MALLY INCLUSIVE. IT IS WITHOUT THE NEED TO INTERNET ACCESS. MOVE TO DEMO. HERE YOU SEE PAUL’S WALLET. THE RED CROSS WANTS TO IMPLEMENT A CASH FOR PROGRAM IN USE IN 30 YEARS. PAUL WANTS TO PROVE HIS ELIGIBILITY. SO HE INVITES THE COMMUNITY IN NAIROBI TO VALIDATE HIS BIRTH. BY REPLYING, I MAKES A CLAIM ABOUT PAUL. AND THIS CLAIM WILL HAVE A HIGH WEIGHT TO POSITION OF TRUST AS A COMMUNITY LEADER. OKAY. MOVE TO DEMO. PAUL HAS RECEIVED THE CLAIM AND HE CAN NOW GO AHEAD AND SHARE HIS BIRTH WITH THE RED CROSS THAT JUST SAVED THE INFORMATION TO IDENTIFY THE PROGRAM PARTICIPANTS. MOVE TO PRESENTATION. SO PROOF OF THE CLAIM START ON THE BLACK CHAIN. SO THE ORGANIZATION CAN SEE WHEN THE CLAIM WAS ISSUED AND BY WHOM. THIS PROVIDES A TRUST AND FOR EVERY IT TI ATTRIBUTE THAT TAKES INTO ACCOUNT THE NUMBER OF CLAIMS AS WELL AS THE TRUST OF THE ISSUING ENTITIES. OUR COMPETITORS, THEY WORK ON DEVELOPING BLACK CHAIN PROTOCOLS FOR REGISTRATION AND SHARING OF EXISTING IDENTITY TREMENDOUS DENTIALS AND BIOMET RICKS. AND THIS TECHNOLOGY IS IMPORTANT. THFR IS NOT A DETERMINING FACTOR. INSTEAD, WE WANT TO BUILD AN ECOSYSTEM FOR OUR PLATFORM IN A CLOSE KNIT LOCALLY RESTRICTED COMMUNITY USING OUR STRONG LOCAL FOOTING. WE ALSO WANT TO BUILD A PRODUCT THAT REFLECTS THE REALITY AND SOCIAL INTERACTIONS AND HOW PEOPLE CREATE TRUST IN THE LOCAL CONTEXT. THIS IS A REFUGEE CAMP IN NORTHERN KENYA THAT HOSTS ALMOST 200,000 REFUGEES. THEY RUN SCHOOLS AND LICENSE PROGRAMS TO BETTER TRACK ATTENDANCE AND PERFORMANCE. AND THESE EDUCATION CREDENTIALS WILL FILL THE WALLETS OF 2,000 USERS. BEING ABLE TO PROVE THIS CREDENTIALS AND LINK THEM TO OTHER PARTS OF YOUR IDENTITY CAN BE CRUCIAL FOR A REFUGEE’S PROGR HE IS IN SOCIETY BY OBTAINING A SCHOLARSHIP. THERE IS CLEAR RELEVANCE FOR ORGANIZATIONS PROVIDING EDUCATIONAL, HEALTH AND FINANCIAL ASSISTANCE. CASH TRANSFER PROGRAMS ALONE HAVE REACHED A VALVE $5 BILLION THIS YEAR AND GROWING FAST. AND TOMORROW IT WILL HELP THE 400 MILLION IN AFRICA TO ACCESS FINANCIAL SERVICES. OUR BUSINESS MODEL IS TRANSACTIONAL F THE RELYING PARTY IS CHARGED A FIXED FEE EVERY TIME THEY MAKE AN IDENTITY CHECK AND PART OF THE FEE IS TRANSFERRED TO THE USER. OUR TEAM HAS DECADES OF EXPERIENCE IN MOBILE FINANCIAL MARKETS IN AFRICA, IN BLOCK CHAIN TECHNOLOGY AND DATA PRIVACY. I MYSELF SPENT YEARS BUILDING PRODUCT FOR THE EAST AFRICAN MARKET. EVERYONE HAS A STORY. NOW LET’S GIVE THE STORY POWER. SHOWING GRAVITY TO GIVE EVERYONE A RECOGNIZED IDENTITY NO MATTER WHERE AND WHO THEY ARE.>>JUDGES?>>CAN YOU TALK ABOUT WHAT THE EXPERIENCE IS LIKE FOR AN INDIVIDUAL BEING ONBOARDED ON TO THIS FOR THE FIRST TIME? CAN YOU ALSO TALK ABOUT WHAT YOUR STRATEGY IS FOR GETTING ORGANIZATIONS KSH GIVING ORGANIZATION THAT’S THEY SHOULD USE THIS AS A VALID FORM OF ID?>>THAT USES — >>THE INITIAL ORGANIZATIONS THAT ARE ON THERE THAT — HOW DO YOU CONVINCE THEM THAT THEY SHOULD BE ACCEPT THIS AS A VALID FORM OF ID?>>YES. SO I MEAN IN TERMS OF THE USER JOURNEY, WE WORK ESPECIALLY IN THE SETTING WITH NGO THAZ PROVIDE TRAINING. SO ONBOARDING IS AT ONE POINT WHEN THE TRAINING HAPPENS. WE SIGN THEM ON. AND THEN IT IS NOT NECESSARILY ABOUT IDENTITY TO ACCESS, FOR EXAMPLE IN, TERMS OF ACCESSING A BANK ACCOUNT. THERE ARE ORGANIZATIONS TO SHARE THE IDENTIFIABLE INFORMATION OR THE DATA LIKE THE CREDENTIALS AROUND EDUCATION. THEY’RE MORE LIKE THE LARGER CONTEXT OF IT TI. AND THEN, YEAH, IN ORDER TO USE IT AS LIKE A VALID IT TI, THAT DEPENDS ON IF YOU ARE IN A REGULATED CONTEXT OR NOT. AND, YEAH, FOR NOW IT’S REALLY AGGREGATING, SIGNING USERS, ORGANIZATIONS UP TO ALTERNATIVE DATA AND USE IT AS SORT OF THE BENEFICIARY TRACKING TOOLS.>>HOW DO YOU PROVE FRAUD AND HOW DO YOU CONVINCE ANY CUSTOMERS TO BELIEVE THAT, YOU KNOW, THERE THAT IS ACTUALLY TRUE?>>YES. OF COURSE, RIGHT NOW THE ALTERNATIVE THEY HAVE IS GO TO THE COMMUNITY. GET THE COMMUNITY TOGETHER. GO TO THE COMMUNITY LEADER AND DO THE SOCIAL VETTING THING. DO THAT EVERY TIME AND IT COSTS MONEY. WE DIGITIZE THAT AND TAKE IT AS A FACT THAT THIS IS HOW VALIDATION HAPPENS IN THE LACK OF IDENTITY AND, YEAH, WE CAN IMPROVE THAT AND ADD LAYERS OF SECURITY BECAUSE WE CAN GIVE DIFFERENT LEVELS OF TRUST ALSO TO WHICH KIND OF PEOPLE MAKE THE VALIDATION.>>I DON’T KNOW THE COMMUNITY. BUT PEOPLE IN THE COMMUNITY MIGHT NOT KNOW WHAT IS MY DATE OF BIRTH. THEY’LL SAY, YEAH THAT, SOUNDS ABOUT RIGHT. BUT, KNOW, YOU CAN — >>YEAH.>HOW DO YOU CONTROL THAT?>>YEAH. SO WE HAVE A SECOND LAYER ON OUR ARCHITECTURE WHERE WE RECONCILE THE CLAIMS. THE INCONSISTENCIES DEPENDING ON WHICH ENTITY ISSUE WHICH KIND OF AND, YEAH THAT, IS SOMETHING WE ARE THINKING ABOUT. AGAIN, THE ALTERNATIVE IS TO DO THAT ON THE CROWN AND HAVE MORE TRACEABILITY, EVEN LESS TRACEABILITY. >>DO YOU USE BIOMET RICRICS TO IDENTIFY THE PEOPLE?>>BIOMETRICS CAN BE USED AS PART OF THE ATTRIBUTES TO COLLECT. SO WE HAVE QUITE — IT’S A FRAMEWORK. CAN YOU HAVE DIFFERENT TYPE OF ATTRIBUTES.>>AND HOW MANY PEOPLE ARE ON THE PLATFORM ALREADY TODAY?>>SO WE DID AN INTERNAL PILOT WITH 3,000 USERS. 75% OF THEM IN THE COUNTRYSIDE TO TEST THE USER EXPERIENCE ABOUT USING THE U.S. SYSTEM MENU WHICH IS THE MAIN INTERFACE. GETTING REFERRAL ANDS SO ON. THAT’S WHY THERE IS SUCH A PERCENT OF THEM ARE DISCREPANCY WITH KYC AND 20% NO ACTUAL IDENTITY. NOW THIS IS DISCONNECTED AND THE NEXT STEP FOR US IS TO MOVE ON WITH THIS DEPLOYMENT IN THE REFUGEE CAMP AND TO REACH 2,000 USERS.>>YOU SAID THAT YOU PROVIDE A TRUST SCORE FOR EACH PERSON PROVIDING A CLAIM. HOW DO YOU SCALEBLY FIGURE OUT THE TRUST LEVEL OF EACH PERSON PROVIDING THE CLAIM?>>YES. SO THERE — THERE IS AN INITIAL TRUST FOR PEOPLE IN THE NETWORK, AN ORGANIZATION THAT MAKES, YOU KNOW, AN ORGANIZATION IS RUN SCHOOLS AND MAKES CLAIMS ABOUT EDUCATION AND HAS A HIGH TRUST SCORE FOR THESE RATES. THE COMMUNITY LEADER ALSO HAS A HIGH INITIAL TRUST SCORE. >>HOW DO YOU KNOW THEY’RE A COMMUNITY LEADER? I’M TALKING ABOUT SCALING THIS UP, RIGHT? I GET AS A PILOT CAN YOU DO THAT AND GO INTO A COMMUNITY AND FIGURE IT OUT. BUT IT YOU’RE LAUNCHING IT IN A COUNTRY, THERE ARE MILL WIONS O PEOPLE, HOW DO YOU KNOW WHO A COMMUNITY LEADER IS.>>THAT IS ON THIS. OTHER PEOPLE CAN VALIDATE. SO THIS WILL INCREASE YOUR — >>IN GERMANY THERE ARE 800,000 MIGRANTS IN GERMANY. WHAT IS GERMANY USING AS A TOOL FOR THAT SO FAR? BECAUSE THERE MUST BE SOME SYSTEMS OUT THERE ALREADY THAT ARE PRETTY ESTABLISHED. I MEAN YOU TALKED ABOUT 3,000. I MEAN, YOU NKNOW, THERE’S A LO OF MOVEMENT OF PEOPLE RECENTLY. THERE MUST BE SOME OTHER PROTOCOL THAT’S PEOPLE ARE ALREADY USING.>>NOT YET. BUT YOU’RE RIGHT. UT IS TOP OF THE AGENT LIKE THE UNHR THAT ISSUED AN RFP TO LOOK FOR THIS SOLUTION TO BE ABLE TO RECONCILE THE IDENTIFICATION THAT ARE OF THE PEOPLE AND REFUGEES THAT MAY HAVE LOST ALL THEIR IDENTITY DOCUMENTS. SO CLEARLY WE TALK TO THE AGENT AND ALL THE DONORS AND HUMANITARIAN ORGANIZATION AND WANT TO IMPROVE THE TRUSTABILITY ESPECIALLY IN THE CONTEXT OF UNCREASE MIGRATION.>>COME BACK TO THE POINT. I THINK FOR THIS TO WORK, I THINK THERE HAS TO BE SOME BIOM BIOMETRICS WHETHER IT IS BLOOD OR WHAT HAVE YOU, I THINK THE FRAUD IS THE BIGGEST CHALLENGE.>>IN INDIA, THEY USE THE IR SI — IRIS CAM. >>ONE MORE ROUND AFTER PLAUZ FOR GRAVITY. THAT WRAPS UP THE SECOND ROUND. WE’RE GOING TO CHOOSE FINALISTS. BEFORE THEY DO. LET’S HEAR IT ONE MORE TIME FOR OUR JUDGES!>>YEAH!>>I LOVE THAT GUY.>>I WANT THAT GUY.>>>LAEDIES AND GENTLEMEN, PLEAE WELCOME BACK TO THE STAGE TECH CRUNCH HEEDITOR.>>HEY, I’M BACK. IS SO WE’RE GOING TO GET INTO A LITTLE BIT ON RIDE SHARING. HUGE RIGHT NOW, TRENDING SO TO SPEAK. WITH THAT, PLEASE WELCOME TO THE STAGE FROM TAXIFY AND FROM VIA. A BIG ROUND OF APPLAUSE.>>HELLO. THANKS, EVERYONE, FOR TUNING IN. I WANT WTO WELCOME OUR CO-FOUNDERS AND CEOS, THANKS SO MUCH FOR COMING. WITH TAXIFY AND VIA. SO I’M REALLY EXCITED TO DELVE INTO WHAT WE CALL THE FUTURE OF TRANSPORTATION. EVERYTHING FROM RIDE HAILING AND SCOOTERS AND, I DON’T KNOW, MAYBE MORE. SOER WANT TO SET THE STAGE A LITTLE BIT AND I WOULD LOVE IT IF YOU COULD BOTH EXPLAIN YOUR BUSINESSES BECAUSE THERE ARE SOME IMPORTANT DIFFERENCES. DANIEL, WHY DON’T YOU KICK THINGS OFF.>>SURE. GREAT TO BE HERE. AT VIA, WE’VE DEVELOPED WHAT WE LIKE TO CALL AN OPERATING SYSTEM FOR MANAGING FLEETS OF ON DEMAND DYNAMIC SHUTTLES. THESE ARE SHARED SORT OF MEDIUM SIZED VEHICLES THAT CAN DRIVE ANYWHERE AROUND THE CITY FOLLOWING A DYNAMIC ROUTE. AND IN REAL TIME WE ARE AGGREGATING PASSENGERS INTO THOSE VEHICLES. IS SO MULTIPLE PASSENGERS WITH SHARING THEIR RIDE, THE ROUTE IS VERY EFFICIENT. WE STARTED OUT BY OPERATING THE SERVICE IN NEW YORK CITY AND WE EXHAPANDED TO CHICAGO AND D.C. AND WE’VE FOUND THAT OUR TECHNOLOGY CAN BE QUITE HELPFUL TO CITIES AND PUBLIC TRANSIT AUTHORITIES. SO WE’VE BEEN HARD AT WORK EITHER LICENSING THE SOFTWARE OR OPERATING IT OURSELVES FOR CITIES AND PUBLIC TRANSIT AUTHORITIES ALL OVER THE WORLD. WE HAVE ABOUT 50 PARTNERS FROM AUSTRALIA TO JAPAN TO SINGAPORE, EUROPE, THE UNITED STATES, WHO QUE WE ARE WORKING WITH SO THAT THEY CAN RUN EFFECTIVELY A BETTER PUBLIC TRANSPORTATION SYSTEM.>>AND WHEN YOU FIRST LAUNCHED, WAS THAT THE BUSINESS MODEL FROM THE VERY BEGINNING, THIS IDEA OF THE DYNAMIC SHUTTLE?>>YEAH, I THINK INITIALLY WE HAD THIS IDEA THAT WE WOULD BE SIMPLY A TECH COMPANY. WE DEVELOPED A TECHNOLOGY THAT THE PUBLIC TRANSIT AUTHORITY WOULD BE SO EXCITED BY THE NEW IDEA OF HOW TO RUN BUSES MORE EFFI EFFICIENTLY, THEY WOULD IMMEDIATELY WANT TO WORK WITH US AND USE OUR TECH. IT TURNED OUT THEY WERE NOT AS INTERESTED AS WE THOUGHT THEY WOULD BE, SO WE LAUNCHED OUR OWN SERVICE. TOOK A FEW YEARS TO DEMONSTRATE THAT IT REALLY WORKED AND NOW CITIES ARE SAYING THIS COULD BE A BETTER WAY TO RUN PUBLIC TRANSPORTATION AND WE’RE HAVING SOME SUCCESS GET CITIES TO ADOPT IT.>>SO MAYBE THEY NEED A LITTLE CONVINCING?>>YES, PROBABLY OF HIS TIMING. SOMETIMES YOU HAVE TO GET THE TIMING RIGHT. AND FOR GOOD REASONS CITIES ARE RISK AVERSE. THE POLITICS OF IT ARE COMPLEX. SO I CAN UNDERSTAND WHY THEY WERE RELUCTANT. WE WERE DISAPPOINTED AT THE TIME.>>SO MARKUS, A LOT OF PEOPLE HERE ARE PROBABLY FAMILIAR WITH TAXIFY, BUT WHY DON’T YOU TELL US WHERE YOU ARE OPERATING AND HOW THE BUSINESS MASS HAS DEVEL.>>SURE. TAXIFY IS THE LARGEST EUROPEAN RIDE SHARING COMPANY. WE ARE OPERATING IN 27 COUNTRIES ACROSS EUROPE AND AFRICA. WE HAVE ABOUT 15 MILLION PASSENGERS AND REALLY THE MAIN COMPETITOR IS OUR U.S. FRIEND WHO PROBABLY EVERYBODY KNOWS. BUT WE’RE MARKET BRING MARKET ACTUALLY GETTING AHEAD AND SHOWING THAT THE LOCAL OPERATING MODEL IS USUALLY THE ONE THAT IS MORE EFFICIENT AND THAT WILL WIN OUT OVER THE LONG TERM. AND IN TERMS OF PRODUCTS, WE STARTED WITH TAXIS. AND NOW THE BUSINESS HAS SHIFTED OVER THE LAST FIVE YEARS MOSTLY TO PRIVATE HIRE. AND NOW WE’RE ACTUALLY GRADUALLY ADDING MORE AND MORE TRANSPORT METHODS ON TOP OF THAT. SO EARLIER THIS YEAR, WE STARTED DOING MOTORCYCLE TAXIS IN AFRICA. AND NOW WE STARTED DOING SCOOTER SHARING FIRST IN PARIS AND NOW ROLLING THAT OUT ACROSS EUROPE. SO LONG TERM VIEW IS TO BE THIS LEADING TRANSPORTATION NETWORK ACROSS EUROPE AND AFRICA THAT PEOPLE CAN USE WHEREVER THEY TRAVEL. AND NOT ONLY GET A TAXI, BUT ANY SORT OF RIDE THEY WOULD NEED.>>AND WHEN TAXIFY FIRST STARTED, IT WAS IN FLEET MANAGEMENT, RIGHT? WHY DID YOU PIVOT AND WHEN DID YOU DO THAT?>>IT IS QUITE AN INTERESTING STORY. WE FIRST OF ALL STARTED OUT BY DOING DISPATCHING SOFTWARE AND FLEET MANAGEMENT TOOLS AND CONSUMER FACING APP TO TAXI FLEETS. BUT THE ISSUE WAS THAT THEY ACTUALLY WEREN’T TOO INTERESTED IN THAT. SO WE WERE TRYING TO SELL TAXI COMPANIES BY SAYING THAT YOU NEED TO ADOPT NEW TECHNOLOGY OTHERWISE FPLATFORMS WILL COME N AND CONSUMERS WILL SWITCH AWAY. BUT YOU BEING HONEST, MOST WERE JUST VERY OLD SCHOOL DINOSAUR THINKING, THEY NEVER ADOPTED THE TECH. SO WE ACTUALLY HAD A SIMILAR VIEW THAT OKAY, WE HAVE THE TECH READY, LET’S JUST START TO OPERATE IT ON OUR OWN. AND VERY QUICKLY WE SAW THAT THIS MODEL MAKES A LOT MORE SENSE TO BE SELF OPERATED FULLY.>>HAVE YOU BOTH NOTICED AS IT SORT OF EXPLODED WHAT WE CALL MOBILITY SOMETIMES OR FUTURE OF TRANSPORTATION, THAT THE FOLKS WHO WERE MAYBE HESITANT HAVE NOW — ARE THEY ALL NOW JUMPING ON BOARD OR ARE THEY STILL SLOW MOVING, ARE AGENCIES OR OTHER COMPANIES STILL NOT QUITE READY TO JUMP IN?>>IT REALLY DEPENDS ON THE COUNTRY AND THE COMPANY. SO AS WE OPERATE IN 25 COUNTRIES, WE SEE SOME LIKE ESTONIA OR FINLAND NOW THAT THEY ARE VERY QUICKLY ADOPTING NEW RIDE HAILING REGULATION, COMPANIES AND CONSUMERS ARE ADOPTING THE SERVICE VERY QUICKLY. AND THEN GERMANY, RIDE HAILING REGULATION IS ONE OF THE STRICTEST IN THE WORLD. YOU CAN ONLY OPERATE WITH LICENSED TAXIS AND IT WILL STILL TAKE MANY, MANY YEARS BEFORE THE INDUSTRY CAN REALLY GET TO ITS FULL POTENTIAL. SO IT IS VERY MUCH CASE BY CASE.>>AND WHAT ABOUT WITH — YOU ARE WORKING MOSTLY WITH TRANSPORTATION AGENCIES. ARE YOU FINDING SIMILAR — >>I THINK THAT’S RIGHT. I THINK IT IS VERY LOCAL. WHILE YOU THINK ABOUT THE TECHNOLOGY I THINK WE’RE DEVELOPING PROBABLY MHAS GLOBAL APPLICATION, BUT IT HAS TO BE ADAPTED CITY TO CITY B BUT FUNDAMENTALLY IT IS THE SAME PROJECT. IT IS EXTREMELY LOCAL. EVEN AS YOU MENTIONED GERMANY, IN BERLIN WE HAVE A SERVICE THAT LAUNCHED A FEW WEEKS AGO. AND IF YOU HAVEN’T USED IT, DOWNLOAD THE APP. AND TRY TO — TRY IT, BUT TAKES SHARED RIDE IN VANS ACROSS BERLIN THAT WE OPERATE IN EUROPE THROUGH OUR JOINT PARTNERSHIP WITH MERCEDES-BENZ AND THIS IS DONE THROUGH THE BERLIN PUBLIC TRANSPORTATION AUTHORITY. AND THE BPG IS EXTREMELY ADVANCED AND HAS ADOPTED THIS TECHNOLOGY. BUT OTHER PARTS OF GERMANY MAYBE TAKE QUITE A FEW MORE YEARS TO GET TO. SO IT CAN VARY EVEN WITHIN THE SAME COUNTRY.>>AND THIS NEW SERVICE THAT JUST LAUNCHED ABOUT TWO WEEKS AGO?>>ABOUT SIX OR SEVEN.>>SO HOW IS THAT DIFFERENT FROM YOUR MORE TRADITIONAL SERVICE OR IS IT?>>THE SERVICE IN BERLIN IS PARTICULARLY INTERESTING BECAUSE WE NEEDED A SPECIAL LICENSE IN ORDER TO OPERATE IT. SO WE AND DAIMLER TOGETHER FORMED A COMPANY CALLED VIA VAN, WE WANTED TO LAUNCH SERVICE IN BERLIN. AND IT WAS AGAINST THE LOCAL REGUL REGULATIONS. AND THE BPG ACTUALLY APPLIED TO THE BERLIN SENATE AND RECEIVED THE LICENSE. SO IT IS THE BPG SERVICE THAT WE AS VIA VAN ARE OPERATING ON A DAY TO DAY BASIS. AND WE BELIEVE IT IS THE LARGEST ELECTRIC FLEET SORT OF PUBLICLY OPERATED SHUTTLES IN THE WORLD. ABOUT 80% OF THE FLEET RUNS ABOUT 100 SHUTTLES IS ELECTRIC. WHICH IS ALSO AN INTERESTING EXPERIENCE.>>AND A DIFFERENT LOGISTICAL CHALLENGE.>>VERY DIFFERENT, YEAH.>>SO YOU DO HAVE DIFFERENT BUSINESSES AS IT IS CLEAR, BUT YOU DO SHARE IN MANY WAYS AW RI RIVAL WHICH IS UBER. I DON’T WANT TO FOCUS TOO MUCH ON IT, BUT I THINK UBER IS DOMINANT IN A LOT OF RESPECTS. SO MARKUS, I’M WONDERING HAS UBER OR HOW HAS UBER IMPACTED YOUR BUSINESS MODEL? AND DOES IT INFORM YOUR DECISION MAKING? FOR EXAMPLE, WHEN OR IF TO GO INTO A MARKET.>>OVERALL AS WE NOW OPERATE IN MORE THAN 20 COUNTRIES AROUND THE WORLD, WE ACTUALLY COMPETE WITH THEM IN ESSENTIALLY EVERY COUNTRY AND CITY WE’RE IN. SO WE’VE ALWAYS BEEN BEIACCUSTO TO HAVING QUITE FIERCE COMPETITION. BUT WHAT IS ALREADY CLEAR FROM MULTIPLE MERGERS AROUND THE WORLD, WHETHER WE LOOK AT RUSSIA, CHINA, NOW SOUTHEAST ASIA, IT IS CLEAR THAT THE LOCAL OPERATING MODEL IN TRPG TRANSPORTATION IS THE ONE THAT WILL WIN OUT IN THE LONG TERM. SO WE SEE A SIMILAR PATTERN. IF YOU NEED TO ACTUALLY LOCALIZE, THEN THE U.S. COMPANIES AREN’T TYPICALLY BEST SUITED DO IT. AND WE SEE IT HAPPENING CITY BY CITY. WE ARE MORE FOCUSED ON TREATING DRIVERS BETTER, WHICH IS SOMETHING THAT IS QUITE UNIQUE TO EUROPE BECAUSE THE REGULATIONS ARE SO HIGH, YOU HAVE A LOT LESS DRIVERS WHO CAN ACTUALLY WORK WITHIN A CITY. SO TREATING THEM WELL IS A MUCH BIGGER FACTOR THAN IT MIGHT BE IN A MARKET WHERE THE SUPPLY OF DRIVERS IS MULTIPLE TIMES BIGGER. SO THESE ARE CASES THAT YOU NEED TO KEEP IN MIND. WHETHER WE WORK WITH CITIES WHICH IS VERY IMPORTANT IN EUROPE OR INTEGRATING LOCAL PAYMENTS AND SO ON, THEN WE SEE A BIG BENEFIT TO LOCALIZATION AND COUNTRY BY COUNTRY WE SEE IN A FEW YEARS WHERE WE ARE TAKING THEM. AND FAST FORWARDING A COUPLE YEARS, WE THINK THAT WE WILL SEE A SIMILAR FUTURE IN EUROPE AND AFRICA AS WE HAVE SEEN IN OTHER PARTS OF THE WORLD.>>SO IS WORKING WITH LOCAL REGULATORS MORE OF A CHALLENGE THAN DEALING WITH UBER? IS THAT THE PRIMARY BUSINESS CHALLENGE?>>ACTUALLY, AGAIN, IT IS COUNTRY BY COUNTRY. SO WHEN WE LOOK AT GERMANY FOR EXAMPLE, THEN WHETHER UBER OR ANYBODY ELSE IS HERE DOESN’T CHANGE OUR BUSINESS MUCH. THE BIGGER BLOCKER IS THAT THE REGULATION IS VERY STRICT AND THERE IS JUST NOT ENOUGH DRIVERS FOR US TO WORK WITH. SO THAT IS ONE EXAMPLE. AND ANOTHER IS THAT ARE MARKET LIKE POLAND MIGHT BE LESS REGULATED, YOU ACTUALLY HAVE ENOUGH DRIVERS, SO YOU CAN BUILD A BUSINESS THAT CUSTOMERS WILL LOVE, BUT YOU HAVE VERY FIERCE COMPETITION. SO AGAIN, THE PROBLEM IS VERY MARKET TO MARKET.>>AND DANIEL, WHAT ABOUT YOU, HOW DOES UBER FACTOR INTO YOUR BUSINESS OR DOES IT?>>I’M SORRY, I’M NOT FAMILIAR WITH THAT COMPANY THAT YOU MENTIONED. [ LAUGHTER ]>>WE HAVE I THINK A VERY DIFFERENT BUSINESS MODEL THAN UBER DOES. SO WHERE WE ARE OPERATING OUR OWN CONSUMER SERVICE LIKE WE DO IN NEW YORK, CHICAGO, D.C., LONDON, WE’RE FACING THIS QUITE FIERCE COMPETITOR I AGREE, BUT OF OFTENTIMES WE ARE FINDING THAT FOR A SHARED RIDE WHICH IS OUR CORE PRODUCT, I THINK WE HAVE A PRETTY GOOD ADVANTAGE IN THE TECHNOLOGY THAT WE DEVELOPED BECAUSE IT WAS BUILT FROM THE GROUND UP TO ALLOW PEOPLE TO SHARE AND OFTENTIMES THE WAY THE DRIVERS ARE BEING COMPENSATED ON THE VIA PLATFORM KIND OF ALL FITS TOGETHER VERY WELL. SO WE USUALLY FIND THAT WE HAVE GOOD SUCCESS IN LAUNCHING OUR OWN SERVICES EVEN WHEN UBER IS COMPETING. MOST OTHER PLACES ARE — UNLIKE TAXIFY, NOT REALLY IN COMPETITION WITH UBER. WE ARE RUNNING WHAT IS REALLY A SUBSIDIZED SERVICE TOGETHER WITH A LOCAL PUBLIC AUTHORITY OR CITY. AND SO IT IS A LOT LESS OF A CONSIDERATION.>>YOU BOTH TOUCHED ON TREATING DRIVERS BETTER AND YOU SORT OF REFERRED TO THE SAME THING. WHAT DOES THAT MEAN? DOES IT MEAN MAKING IT EASIER TO USE, IS IT PAY?>>I WOULD SAY IN NEW YORK THE TAXI LIMOUSINE COMMISSION RECENTLY ISSUED A STUDY THAT SHOWED HOW MUCH DRIVERS WERE MAKING ON THE DIFFERENT PLATFORMS. IF YOU LOOK AT HOW MUCH DRIVERS ARE MAKING ON A VIA PLATFORM, I THINK THEY ARE MAKING ABOUT 50% MORE HOUR– UBER OR LYFT. AND THEY EARN COMPARABLE AMOUNTS WITH PASSENGERS IN THE CAR, BUT IT IS THE WAY THE SASYSTEM WORK UTILIZATION IS MUCH HIGHER. SO THE AMOUNT OF TIME THAT THEY ARE SITTING AROUND EMPTY IS REDUCED.>>AND COMING BACK TO THE MARKET SPECIFICS, WHEN WE LOOK AT EUROPE, YOU HAVE VERY CONSTRAINED POOL OF DRIVERS DUE TO HIGHER REGULATION. SO THE DRIVERS ARE SOMETHING THAT YOU HAVE TO FIGHT A LOT MORE FOR RATHER THAN CONSUMERS ACTUALLY IN MANY OF THESE MARKETS. SO WHAT WE’RE FOCUSED ON IS HOW MUCH THE DRIVER MAKES. LIKE WHATEVER OTHER PERKS AND GYM PIC GIMMICKS THAT YOU CAN DO ON TOP OF IT, AT THE END OF THE DAY, THEY CARE ABOUT THEIR PAY.>>YEAH, THEY WANT TO MAKE MORE MONEY.>>ON THE ONE HAND, IT IS PERKS, HOW TO SAVE THEM COSTS. IN FRANCE WE ROLLED OUT A HUGE PARTNERSHIP SO DRIVERS CAN GET ABOUT 7%, 8% DISCOUNT ON FUELS WITH US, WHICH OTHER PLATFORMS DON’T DO, OR WE JUST PAY THEM MORE ON EVERY TRIP THANKS TO A LOWER COMMISSION. SO AT THE END OF THE DAY, WHAT IT RESULTS THIS IS WE ARE ATTRACTING MORE DRIVERS. AND THE DRIVERS ARE THEN HAPPIER BECAUSE THEY PREFER US DUE TO HIGHER EARNINGS. AND AT THE END OF THE DAY, WE SEE CONSUMERS ARE MAKING THEIR CHOICE BASED ON THAT AS WELL. SO IF YOU ARE MORE OR LESS PAYING THE SAME RATE BUT YOU KNOW THAT THE ONE PLATFORM THE DRIVER IS HAPPIER, YOU HAVE MORE DRIVER, CONSUMERS ARE MORE LIKELY TO MOVE TO THAT PLATFORM IN THE LONG TERM.>>YOU ALSO DO HAVE ANOTHER THING THAT BOTH COMPANIES SHARE WHICH IS A COMMON INVESTOR, DAIMLER. BUT I THINK THAT THE RELATIONSHIPS ARE SLIGHTLY DIFFERENT. DANIEL, TALK TO ME A LITTLE BIT ABOUT DAIMLER. BECAUSE IT IS MORE OF A STRATEGIC INVESTMENT, RIGHT?>>YES. WE REALIZED FAIRLY QUICKLY ONCE WE LAUNCHED OUR OWN SERVICE, AND THIS IS TRUE FOR TAXIFY AS WELL, THE SERVICE — THE EXPERIENCE DOESN’T END IN THE APP. IF YOU ARE USING VENMO FOR MULTIPLE PAYMENTS OR PLAYING CANDY CRUSH OR WHATEVER IT IS YOU LOVE TO DO, THAT USUALLY STARTS AND ENDS WITH YOUR EXPERIENCE IN THE APP. FOR US THE APP IS JUST THE BEGINNING AND THEN THERE IS THE VEHICLE AND THE DRIVER AND TRAFFIC AND THE CITY AND EVERYTHING ELSE THAT YOU ARE INTERACTING WITH. AND IT TURNS OUT WHEN YOU ARE SHARING A RIDE, THE VEHICLE THAT YOU IN MAKES A REALLY BIG DIFFERENCE. IF YOU ARE SHARING A RIDE WITH THREE OTHER PEOPLE IN THE BACK OF A TOYOTA CAMRY, IT IS NOT A GREAT EXPERIENCE EVEN IF IT IS RELATIVELY EXPENSIVE. YOU MIGHT PREFER THE BUS OR THE SUBWAY. IF YOU ARE SHARING THE BACK OF A MINIVAN OR A SLIGHTLY LARGER VEHICLE AND YOU’VE GOT YOUR OWN SEAT, IT JUST FEELS SIGNIFICANTLY BETTER. NOT TO MENTION THAT THE EFFICIENCY OF THAT RIDE WHEN YOU HAVE A VEHICLE THAT CAN SEAT SIX PASSENGERS, WHERE YOU CAN GET IN AND OUT VERY QUICKLY WITHOUT MAKING OTHER PEOPLE GET UP, FOR US THE EFFICIENCY INCREASES SIGNIFICANTLY. SO IN PARTNERING WITH DAIMLER, IT WAS ABOUT WORKING TOGETHER TO DEVELOP THE RIGHT VEHICLE. BECAUSE THERE ISN’T REALLY A VEHICLE ARE OUT THERE THAT IS DESIGNED TO BE A DYNAMIC SHUTTLE WHERE HUNDREDS OF PEOPLE ARE GETTING IN AND OUT EVERY DAY AND MOVING AROUND THE SEATS AND SO FORTH. SO PART OF THE PARTNERSHIP, YES, THERE IS AN INVESTMENT, BUT REALLY IT IS ABOUT THINKING HOW DO WE BUILD THE VEHICLE OF THE FUTURE THAT CAN SERVE SORT OF DYNAMIC MASS TRANSIT SYSTEM IN A CITY AT SCALE.>>SO ARE YOU DEVELOPING A VAN THEN? YOU CAN TALK ABOUT THE VEHICLE THAT YOU ARE WORKING ON?>>WE AS VIA ARE NOT STARTING A PLAN TO BUILD A VAN, BUT WE ARE PARTNERING TO FIGURE OUT HOW DO WE AT FIRST ADAPT THE EXISTING VAN AND THEN I DON’T WANT TO SPEAK FOR DAIMLER FOR THEIR CAR MANUFACTURING PLANS, BUT THE IDEA WOULD BE IF THERE IS VOLUME, WHICH WE THINK THERE IS, TO DEVELOP A UNIQUE VEHICLE FOR THE SERVICE.>>SO DO YOU SEE IN FIVE YEARS DEVELOPING A VEHICLE TAKES A LONG TIME, FIVE TO SEVEN YEARS, SO DEVELOPING A VAN FOR VIA? DO YOU SEE THAT ACTUALLY HAPPENING WITH DAIMLER?>>AGAIN, I CAN’T SPEAK FOR DAIMLER. IT WILL GET ME IN TROUBLE. BUT I SURE HOPE SO. AND WHAT WE’RE DEFINITELY DOING WHICH YOU CAN SEE IN BERLIN, YOU WILL SEE MODIFIED VETO VANS THAT ARE — OR V CLASS VANS THAT ARE MODIFIED SPECIFICALLY FOR OUR SER IS ADVICE. SO WE’RE ALREADY STARTING TO SEE THE BENEFITS OF HAVING THIS RELATIONSHIP. AND HOPEFULLY DAIMLER FEELS SIMILARLY THAT THEY ARE GETTING INPUT FROM CONSUMERS, FROM DRIVERS ABOUT WHAT MAKES A VEHICLE WORK IN THIS APPLICATION.>>AND WHAT ABOUT YOU, IT IS A SLIGHTLY DIFFERENT RELATIONSHIP. WHAT IS YOUR INVOLVEMENT WITH DAIMLER?>>SO OVERALL DAIMLER REALIZES THAT MORE AND MORE PEOPLE IN TEN YEARS WILL NOT BE BUYING CARS BUT WILL BE USING CARS ON DEMAND. WE ARE ALREADY THE BIGGEST RIDE HAILING OPERATOR IN EUROPE, WE’RE GROWING THE FASTEST HERE AND THERE IS A PRETTY GOOD OUTCOME THAT WE WILL BE OVERALL THIS MASS TRANSPORTATION PLATFORM THAT WILL COMBINE CARS AND SCOOTERS AND OTHER FORMS OF TRANSPORTATION A PERSON MIGHT NEED TO GET AROUND IN ONE SINGLE APP. AND OF COURSE FOR DAIMLER, ONE OF THE BIGGEST CAR MANUFACTURERS, THEY WANT TO BE A PART OF THAT FUFT. SO — FUTURE. SO THEY WANTED TO MAKE SURE THERE WAS A STRONG EUROPEAN PLAYER RATHER THAN LET IT BE ANOTHER SPACE RUN BY A U.S. COMPANY.>>AND ARE YOU WORKING ON ANY PRODUCTS WITH THEM AT ALL OR PROJECTS WITH THEM? OR IS IT MORE OF A FINANCIAL INVESTMENT RELATIONSHIP?>>SO THE INDUSTRY IS STILL IN ITS EARLY DATE. WHEN WE LOOK AT OVERALL ON DEMAND RIDES RELATIVE TO ALL THE TRIPS THAT ARE HAPPENING IN THE CITY, WE ARE TALKING ABOUT 2%, 3%. SO THE VAST MAJORITY ARE STILL DONE BY PRIVATE LOAN CARS AND PUBLIC TRANSPORTATION. SO FOR NOW IT IS AN INVESTMENT INTO THE FUTURE AND AS THE INDUSTRY MATURES AND DEVELOPS, THERE IS ROOM FOR COLLABORATION. AND ONE OF THOSE IS JUST VEHICLE FINANCING FOR THE DRIVERS. AND ANOTHER IS WORKING TOGETHER ON AUTONOMOUS CARS IN THE FUTURE. SO THERE IS A NUMBER OF AREAS THAT WE CAN GET INTO, BUT FOR NOW WE’RE JUST FOCUSED ON BUILDING THE BIGGEST EUROPEAN PLATFORM.>>YOU BROUGHT UP AUTONOMOUS VEHICLES. I’M WONDERING WHAT BOTH OF YOUR THOUGHTS ARE ON THAT AND WHETHER YOU SEE THAT TECHNOLOGY EVENTUALLY BEING DEPLOYED WITHIN YOUR OWN COMPANY AND WHETHER THAT IS A PRIORITY. DANIEL — OR MARKUS, GO AHEAD.>>SO OVERALL HOW I SEE IT IS THAT SHORT TERM AUTONOMOUS DRIVING IS SERIOUSLY OVERHYPED. SO THERE IS NOT GOING TO BE MAJOR CONSUMER IMPACTS FROM AND YOU TON YOU — AND YOU — AUTONOMOUS CA NEXT NEW YEARS. SO WE ARE WORKING ON WHAT WORKS RIGHT NOW. AND SO WE SEE THAT THAT WILL HAVE A MUCH MORE TANGIBLE IMPACT ON LIVES OF PEOPLE FOR THE NEXT COUPLE YEARS. BUT SURE, IN THE LONG TERM AUTONOMOUS CARS WILL COME, THEY WILL COME ON PLATFORMS THAT YOU CAN USE ON DEMAND. AND ONE OF THE MOST LOGICAL REASONS WHY IT IS GOING TO BE LIKE THAT IS BECAUSE AUTONOMOUS CARS WILL NOT HAVE AVAILABILITY TO DRIVE AN ENTIRE CITY AT ONCE. BUTGRADUALLY. SO THEY MIGHT BE ABLE TO DRIVE IN ONE AREA, BUT NOT THE REST. SO PLATFORMS THAT COMBINE HUMANS AND AUTONOMOUS DRIVING WILL BE ABLE TO COVER IT SEAMLESSLY. SO AS A CONSUMER, YOU SAY I WANT TO GO FROM HERE TO HERE AND WE KNOW THAT WE CAN EITHER COVER IT WITH AN AUTONOMOUS CAR OR WE’LL SEND YOU A DRIVER. BUT THOSE ARE THINGS THAT ONLY ON THE RISE HAILING PLATFORMS CAN DID AND IT IS VERY HARD FOR ME TO START FROM SCRATCH WITH A PURELY AUTONOMOUS CAR PLATFORM AND COMPETE WITH THAT.>>THAT IS INTERESTING BECAUSE NOT TO BRING UP UBER AGAIN, BUT I WILL, THEY HAVE PUT A LOT OF MONEY AND CREATED THIS ENTIRE BRANCH OF THEIR COMPANY, UBER ATG, TO TRY TO BE THE FIRST. AND THEY HAVE CERTAINLY DIALED THINGS BACK. WHEREAS TAXIFY IT SEEMS LIKE YOU’RE JUST GOING TO FOCUS ON THE NOW AND THE MEDIUM TERM AND YOU DON’T FEEL LIKE THERE NEEDS TO BE ONE WINNER. WOULD THAT BE ACCURATE? TERMS OF AUTONOMOUS VEHICLES?>>SURE. SO THERE IS SOME NETWORK EFFECTS WITHIN AUTONOMOUS DRIVING, SOME DIFFERENT PARTS OF THE ECOSYSTEM. BUT WE’RE VERY CONFIDENT THAT THERE WILL BE A NUMBER OF PLAYERS IN THAT SPACE. SO THERE IS NOT GOING TO BE THAT WAYMO IS ONE THAT WILL HAVE AND AN TON– AN AUTONOMOUS CAR AND 15 YEARS AHEAD OF EVERYBODY. THERE WILL BE A NUMBER.>>AND SO WHAT ABOUT FOR VIA, HOW DOES AUTONOMOUS VEHICLE TECHNOLOGY PLAY INTO YOUR BUSINESS MODEL?>>AND BY THE WAY, I VERY MUCH AGREE WITH WHAT MARKUS SAID ABOUT WHERE AUTONOMOUS VEHICLES ARE TODAY. WHAT I MIGHT ADD, WHERE I THINK THAT WE MIGHT START TO SEE APPLICATIONS, IT WON’T HAVE A MAJOR CONSUMER IMPACT, BUT ON A SMALL SCALE, WHERE CITIES OR IT COULD BE WITHIN PRIVATE CAMPUSES ARE ABLE TO ADAPT THE INFRASTRUCTURE ITSELF TO MAKE THE PROBLEM EASIER, WHETHER IT IS DEDICATED LANES OR WHETHER YOU CAN PUT BEACONS ON THE LAMP POST OR WHATEVER IT IS. I THINK THAT WILL FACILITATE SERVICES. SO WE’LL START TO SEE I BELIEVE OVER THE NEXT THREE YEARS THESE SMALLER SERVICES POP UP IN PARALLEL TO WHAT WAYMO AND OTHERS ARE DOING. AND THAT WILL BE INTERESTING AS AN ALTERNATIVE WAY TO LAUNCHING PROBABLY WITH MUCH SIMPLER TECHNOLOGY. AS FAR AS VIA IS CONCERNED, WE HAVE A SIMILAR APPROACH. WE SEE OURSELVES DEVELOPING SOFTWARE THAT SITS AT THE NETWORK LEVEL, NOT AT THE INDIVIDUAL CAR DRIVING LEVEL. AND THERE WILL BE PROBABLY MULTIPLE PROVIDERS THAT WILL BE A PART OF OUR NETWORK WE HOPE. BUT IT IS NOT THE SHORT TERM FOCUS.>>AND SPEAKING OF THE FUTURE BECAUSE WE HAVE THAVE TO WRAP U SHORTLY, I’M WONDERING WHAT THE FUTURE LOOKS LIKE WITH DD. DUN DO YOU THINK THEY MIGHT TRY TO ACQUIRE YOU OR JUST INVEST IN YOU MORE?>>OVERALL IT IS BECOMING QUITE CLEAR THAT THE LOCAL OPERATORS HAVE QUITE THE BIG ADVANTAGE OVER JUST TRYING TO DO ONE GENERIC PLATFORM AND ACTUALLY OPERATE IN EVERY COUNTRY. AND SO WE SEE IT IS MORE LIKELY THAT RIDE HAILING PLAYERS THAT ARE THERE NOW WILL STILL BE THERE IN FIVE YEARS. AND SO WHEN WE LOOK AT OUR MARKETS LIKE IN AFRICA WITH SAFETY, LOCAL PAYMENT METHODS, THESE ARE THINGS THAT ACTUALLY TAKE QUITE A LOT OF TIME TO DEVELOP AND YOU NEED TO LOCALIZE. SO WE DON’T THINK THAT THERE WILL BE ONE GLOBAL SOLUTION.>>AND YOU RECENTLY GOT INTO SCOOTERS. ARE YOU GOING TO GET INTO OTHER BUSINESS AS WELL IN THE NEXT YEAR OR TWO? FOOD DELIVERY IS ONE OPTION. BIKE SHARE.>>WE’RE LOOKING AT ALL THE WAYS HOW TO MOVE PEOPLE AROUND. SO THAT IS WHAT WE ARE FOCUSED ON IN THE SHOR SHE SHORT TERM.>>AND THEN AS A MARKET, THE U.S.?>>FOR US IT IS EUROPE, AFRICA. WE WANT TO WIN THESE REGIONS, BE THE BEST PLATFORM FOR PEOPLE TO MOVE AROUND HERE.>>AND WHAT ABOUT VIA, WHAT DOES THE NEXT YEAR LOOK LIKE FOR YOU? WILL YOU SUDDENLY GET IN TO THE SCOOTER BUSINESS AS WELL?>>WE’RE ADDING SCOOTERS MOSTLY AGAIN FOR PARTNER CITIES WHERE THEY ARE LOOKING TO PROVIDE A HOLISTIC TRANSPORTATION SOLUTION AS A PUBLIC TRANSIT OFFERING TO THE RESIDENTS. I THINK FOR US THE VISION IS TO TAKE THIS PLATFORM WE’VE DEVELOPED AND I THINK IT IS A BIT OF A DIFFERENT BUSINESS AGAIN FROM TAXIFY, SO WE DO HAVE A FEW THAT IT CAN BE GLOBAL. AND BY THE END OF NEXT YEAR, WE’D LIKE TO BE IN ABOUT 300 DIFFERENT CITIES POWERING THE PUBLIC TRANSIT SYSTEM.>>THANKS SO MUCH, EVERYONE. A ROUND OF APPLAUSE FOR THESE GUYS FOR COMING UP ON STAGE.>>>HEY PARTY PEOPLE, WHAT’S UP? THE VC INDUSTRY HAS NOT MADE A NAME FOR ITSELF WHEN IT COMES TO BEING DIVERSE, BUT A TOMORROW C ATOMICO HAS ADDRESSED THE ISSUE IN AN INTERESTING WAY. PLEASE WELCOME TO THE STAGE SOPHIA BENDZ, DOREEN AND ALSO CONNIE.TERESTING WAY. PLEASE WELCOME TO THE STAGE SOPHIA BENDZ, DOREEN AND ALSO CONNIE.>>HI AGAIN EVERYONE. JOINING ME IS SOPHIA BENDZ, WHO MAY BE BEST KNOWN AS EMPLOYEE NUMBER 9 AT SPOTIFY, THE STREAMING MEDIA COMPANY THAT SHE HELPED TO SCALE TO 3,000 EMPLOYEES. I REALIZE THERE ARE PROBABLY FOUNDERS IN THE AUDIENCE WHO WOULD LOVE TO TAP HER ADVICE ON HOW TO GROW THEIR OWN BRANDS AND WE WILL TALK ABOUT THAT. BUT FIRST, I ALSO WANTED TO INTRODUCE YOU TO DOREEN, CO-FOUNDER AND CEO OF LEMON CAT WHICH IS A 3-YEAR-OLD CORPORATE CATERING STARTUP. AND BESIDE HER IS RETU JANE, CO-FOUNDER AND CEO OF LIFEX. AND THEY ARE JOINING US ON STAGE BECAUSE WE HAVE SOME NEWS WHICH IS THAT TOMOR A TOMORROW COMPAN ATOMICO IS LAUNCHING A COMPANY THAT YOU WILL WANT TO KNOW ABOUT. AND SO IS THIS A DIFFERENT SKILLSET?>>YEAH, ONE PART OF ME WAS THAT IT WOULD BE DIFFICULT TO FIND A JOB THAT WOULD BE AS EXCITING. SO I TOOK SOME TIME OFF AND I WAS PLANNING ON FIGURING THINGS OUT. AND ENDED UP DOING SOME INVESTMENTS AND REALLY ENJOY THAT ACTUALLY. I LOVE THE ENERGY OF THE FOUNDERS AND I WANTED TO FIND A WAY TO SORT OF STILL BE CLOSE TO THE ECOSYSTEM BUT WITHOUT TAKING ON A FULL-TIME JOB.>>YOU WERE IN LONDON AT THIS POINT?>>I WAS ACTUALLY BASED IN NEW YORK. SO I DID A LOT OF INVESTMENTS TOGETHER WITH SOME OF MY FORMER SPOTIFY COLLEAGUES, BUT THEY RANGE FROM THE NORDICS TO YOU’RE A — EUROPE AND ALSO U.S. COMPANIES. WE HAVE AROUND 25 ACTUALLY. AND WHEN I DID THAT, I WANT TO TIE IT IN IT MY ROLE NOW, I ALSO FIGURED THAT IT WOULD BE FUN AND EXCITING TO ACTUALLY WORK WITH SOMEONE WHO KNOWS WHAT THEY ARE DOING AND WHO IS GOOD AT IT. SO I MET NICHOLAS WHEN DOING SOME CONSULTING WORK AND WE STARTED TALKING AND I SAID TO HIM YOU SHOULD BE CLOSER TO THE INDIAN COMMUNITY BECAUSE THERE IS SO MUCH EXCITING STUFF HAPPENING. AND SO I JOINED ATOMICO AND NICHOLAS WAS GOOD ENOUGH TO HIRE ME.>>AND YOU WERE EVENTUALLY A FULL-TIME PARTNER.>>THAT’S CORRECT. AND I THINK THAT IS A COOL ROLE FOR PEOPLE TO BEAR IN MIND. IF YOU IN THAT PLACE WHERE YOU ARE THINKING ABOUT WHAT DO YOU WANT TO DO NEXT, BECAUSE THAT REALLY GIVES YOU AN OPPORTUNITY TO SORT OF TRY OUT AND UNDERSTAND WHAT IT ACTUALLY MEANS. SO AFTER TWO YEARS, IT FEELS GREAT TO BE SORT OF FULL-TIME AND ALSO BE A PARTNER.>>AND CONGRATULATIONS ALSO ON YOUR NEWBORN.>>THANK YOU.>>SO TELL US ABOUT YOUR NEW PROGRAM.>>I’M VERY GLAD TO BE HERE AND THANK YOU FOR HAVING US. SO WE ARE ALWAYS LOOKING FOR WAYS TO SUPPORT AND BOOST THE LOCAL ECOSYSTEMS MUCH THE STARTUP HUBS IN EUROPE. ONE WAY IS TO SORT OF HELP FOSTER AND MENTOR THE NEXT GENERATION.HUBS IN EUROPE. ONE WAY IS TO SORT OF HELP FOSTER AND MENTOR THE NEXT GENERATION. I’VE SEEN SO MANY THINGS COMING OUT OF COMPANIES AT THE EVENTS. AND IT IS REALLY A WONDERFUL OPPORTUNITY TO SORT OF GIVE BACK. SO OUR PROGRAM IS ALL ABOUT THAT. AND WE BELIEVE THAT IT IS MORE ABOUT LONG TERM RELATIONSHIP BUILDING THAN TRANSACTIONS. AND WE ALSO WANT TO BE CLOSER TO THE SORT OF GETTING TO KNOW ENTREPRENEURS EVEN EARLIER ON IN THEIR JOURNEY. AND WE ALSO WANT TO UNLOCK POTENTIAL AND TALENT IN SORT OF DIFFERENT POCKETS OF THE EXHOE SYSTEM THAT — ECOSYSTEM THAT WE DON’T HAVE ACCESS TO. SO IT IS A WAY TO BROADEN OUR SCOPE AND ALSO HELP NEW PEOPLE TO SORT OF TRY OUT THE ART. AND I WANT TO DEMYSTIFY IT. IT IS NOT SOMETHING FOR JUST AN EXCLUSIVE GROUP OF PEOPLE. IT IS ACTUALLY SOMETHING THAT, YOU KNOW, I WANT MORE PEOPLE TO TRY OUT BECAUSE I HAVE SUCH A GOOD EXPERIENCE WITH IT AND HOPEFULLY THAT WILL GENERATE MORE PEOPLE BEING INTERESTED IN JOINING THE VC INDUSTRY AND IN THE LONG RUN POTENTIALLY WE’LL HAVE MORE MFEMALE AND DIVERSE ST OF INVESTORS.>>AND DOREEN, LET’S TALK ABOUT FOR YOU A MINUTE. MY UNDERSTANDING IS YOU RAISED ABOUT $11 MILLION FROM INVESTORS TO DATE, YOUR COMPANY IS THREE YEARS OLD. YOUR BACKGROUND IS VERY INTERESTING BECAUSE YOU WERE PREVIOUSLY THE COO OF DELIVERY HERO.>>YES.>>SO WHAT ABOUT THAT WORK MADE YOU THINK I SHOULD START MY OWN COMPANY?>>WELL, I WAS AS YOU SAID NOT NEW TO THE FOOD MARKET. SO THAT IS REALLY MY PASSION. WHENEVER WE WERE THROWING EVENTS AND WE WERE ORDERING FROM THE PLATFORM, I THOUGHT THE EXPERIENCE IS NOT FANTASTIC. YOU WANT THE FOOD TO STAND OUT AND YOU WANT TO SAY THANK YOU TO YOUR PEOPLE SO YOU HAVE A PURPOSE WHY YOU ARE ORDERING FOOD. AND SO I THOUGHT IS THERE NOTHING WHICH IS REALLY GREAT OUT THERE, WHERE ARE ALL THE GREAT MANUFACTURER, FANTASTIC CHEFS CREATING GREAT FOOD. AND THEN AFTER I LEFT DELIVERY HERO, I DID NOT DO IT RIGHT AWAY. SO BASICALLY THE THOUGHT WAS IN MY MIND FOR A WHILE. AND I WAS WORKING IN THE U.S., INVESTING IN U.S. STARTUPS. AND I WAS HANGING OUT IN THE BEAUTIFUL OFFICES WITH A FANTASTIC KITCHEN AND CATERERS COMING IN AND SO I THOUGHT I HAVE TO BRING THIS TO EUROPE. AND SO THAT WAS THE STARTING POINT FOR LEMON CAT.>>AND IT IS SHOCKING HOW NICELY STOCKED THE STARTUP KITCHENS ARE. BUT TELL ME A LITTLE BIT ABOUT HOW YOU CONNECTED THEN WITH SOPHIA REGARDING THIS PROGRAM.>>I WAS FUND RAISING FOR LEMON CAT AS WELL. AND I ALSO TALKED TO ATOMICO. AND WE STAYED IN TOUCH. AND AFTER A WHILE, HE INTRODUCED ME TO SOPHIA AND SAID WE’RE DOING SOMETHING FANTASTIC HERE AND HE KNEW THAT I WAS ALSO AN ACTIVE ANGEL INVESTOR OVER THE LAST YEARS ALREADY. AND SO ATOMICOC OFFERED ME TO E A PART OF IT AND I SAID YES.>>AND I KNOW THAT YOUR COMPANY IS A LITTLE YOUNGER. OFFERED ME A PART OF IT AND I SAID YES.>>AND I KNOW THAT YOUR COMPANY IS A LITTLE YOUNGER.>>AND WE’RE IN COPENHAGEN AND BERLIN AND WE’RE LAUNCHING IN PARIS.>>AND YOU’VE RAISED ABOUT 4 MILLION EURO. AND YOUR COMPANY IS SORT OF — RELOCATION SERVICES IS SORT OF LIKE A CO-LIVING COMPANY WHO INVITES PEOPLE WHO ARE MOVING TO NEW CITIES?>>YEAH. PEOPLE ALWAYS ASK US, RELOCATION, CO-LIVING, HOW DOES IT REALLY WORK TOGETHER. AND I ACTUALLY COME FROM PRODUCT BACKGROUND, SO I WAS — PRIOR TO STARTING THIS, I WAS HEAD OF PRODUCT AT A COMPANY CALLED PEACON WHICH IS ALL AROUND EMPLOYEE ENGAGEMENT. AND BEFORE THAT, I WAS WITH TRADE SHIFT WHICH IS A SUPPLY CHAIN MANAGEMENT PRODUCT. AND WHEN I LOOK AT PROBLEMS, WE ALWAYS LOOK AT THE BEST WAY TO FIND SOLUTIONS. AND IT MIGHT NOT BE THE MOST APPARENT WAY FOR SOLVE SOMETHING, BUT IT IS ALL BASED ON USER EXPERIENCE. SO WE STARTED LIFE X BASED ON MY OWN EXPERIENCE. I’M AN AMERICAN LIVING IN COPENHAGEN AT THE MOMENT AND WHEN I MOVED TO COPENHAGEN, I THOUGHT HOW HARD IT COULD BE. BUT I REALIZED THAT THERE IS A LOT OF BUREAUCRATIC SYSTEMS THAT ARE STILL IN PLAY THAT MAKE IT VERY DIFFICULT TO HAVE A SOFT LANDING EXPERIENCE. AND WHEN YOU FIRST LAND IN A PLACE, YOU MIGHT NOT KNOW THE NEIGHBORHOODS, YOU MIGHT NOT HAVE MANY FRIENDS OUTSIDE OF YOUR WORK. SO HOW DO YOU START MAKING CONNECTIONS RIGHT AWAY. SO THAT IS THE PROBLEM WE WANTED TO SOLVE. SO IT MAKES SENSE TO DO IT END TO END. AS I WAS BUILDING MY OWN PRODUCT TEAMS WITH ENGINEERS, DESIGNERS, PMs, WE NOTICED THAT THEY FACE THE SAME CHALLENGES THAT I HAD FACED WHEN I MOVED FROM U.S. TO COPENHAGEN. AND SO INSTEAD OF LOOKING AT IT JUST AS A RELOCATION SERVICE OR JUST AS A HOUSING SERVICE, WE WANTED TO SOLVE A PROBLEM FOR ANYONE THAT IS MOVING FROM CITY TO CITY. SO IT IS ACTUALLY RELOCATION AND HOUSING TOGETHER. BECA THAT IS WHAT SOMEBODY REALLY NEEDS.>>HOW MANY MARKETS ARE YOU OPERATING IN?>>WE ARE IN COPENHAGEN, BERLIN AND PARIS AT THE MOMENT.>>AND HAD YOU DONE ANGEL INVESTING BEFORE?>>YEAH, SOPHIA INVESTED IN LIFE X. I STILL REMEMBER TALKING TO HER ABOUT THIS. AND I THINK THAT SHE JUST INSTANTLY CONNECTED TO IT BECAUSE OF ALL THE MOVES YOU HAD DONE AND HIRING YOU HAD DONE AT SPOTIFY.>>YES, AND ALSO EXPERIENCED THE VIA PISA PROBLEM WHEN I MOVED TE U.S. >>IT IS INTERESTING HOW INTERNATIONAL THE PROBLEM IS, AND IT GOES THERE INDUSTRY TO INDUSTRY, NOT JUST TECH EMPLOYEESES. BUT ARCHITECTS AND CHEFS AND ALSO I MET A WOMAN ON THE PLANE WHO WORKS AT U.N.S. BUT ARCHITECTS AND CHEFS AND ALSO I MET A WOMAN ON THE PLANE WHO WORKS AT U.N.. BUT ARCHITECTS AND CHEFS AND ALSO I MET A WOMAN ON THE PLANE WHO WORKS AT U.N. AND HAD THE SAME CHALLENGES. SO THAT IS HOW WE CONNECTED AND WE HAVE BEEN IN TOUCH SINCE THEN. SHE’S BEEN A GREAT ANGEL INVESTOR TO US. AND FOR ME, I HAVE BEEN THINKING WHEN I HAVE LEARNED QUITE A BIT NOW OVER THE PAST 12 TO 15 YEARS IN THE TECH COMMUNITY, BUT I’M A BIT SHY AT JUST WRITING BLOG POSTS AND POSTING MY PERSPECTIVES BECAUSE I’M NOT TOTALLY SURE WHAT I CAN BRING TO THE TABLE. BUT OVER THE LAST FIVE YEARS, I’VE REALIZED THAT YOU KNOW WHAT, THERE ARE CERTAIN AREAS THAT I HAVE BEEN ABLE TO HELP SOME FOUNDERS OUT WHEN IT COMES TO PRODUCT DECISIONS, YOU KNOW, FIGURING ON YOUR PRODUCT MARKET, YOUR POSITIONING, ET CETERA. SO I HAVE BEEN INTERESTING IN TRYING TO SEE HOW TO HELP FOUNDERS GET BETTER AT MAKING PRODUCT DECISIONS. AND THAT ENCOURAGED ME TO GET IN TO INVESTMENTS JUST SO THAT I COULD PASS ON SOME OF THE LEARNINGS I’VE HAD, MADE OF THE MISTAKES I’VE MADE. AND MAKE SURE NOBODY ELSE REPEATS THAT OR, YOU KNOW, HAS A DIFFERENT PERSPECTIVE. SO I BECAME AN LP AND THE NORDIC WEB VENTURES OUT OF COPENHAGEN. THAT WAS A WAY TO HELP SOME OF THE FOUNDERS. AND THEN SOPHIA AND I TALKED AS WE WERE RAISING OUR NEXT ROUND OF FUNDING. AND IT WAS INTERESTING, HE WAS ASKING ME ABOUT MY PRODUCT PERSPECTIVE AND WHAT I THINK OF, YOU KNOW, STRATEGY, ET CETERA. AND THEN SOPHIA TOLD ME ABOUT THIS NEW PROGRAM THAT THEY WERE STARTING. AND I THOUGHT THAT, YOU KNOW, I KNOW I’M VERY BUSY WITH PLAINTILIFE X, BUT THIS COULD BE A GREAT WAY ON THE SIDE TO SHARE SOME OF MY LEARNINGS AND MAYBE HELP SOMEBODY OUT WHEN IT COMES TO PRODUCT DECISIONS.>>AND SO IN SOME WAYS THAT REMINDS ME OF SEQUOIA CAPITAL. OBVIOUSLY THIS IS NOT THE FIRST SORT OF ANGEL PROGRAM OF ITS NATURE. SCOUTING PROGRAMS HAVE BEEN AROUND FOR MAYBE SIX, SEVEN YEARS. I THINK SEQUOIA CAPITAL IS PERHAPS THE FIRST TO DO IT OR THE FIRST TO SORT OF BE DISCOVERED. IT WAS SORT OF DOING IT ON THE DOWN LOW. BUT IT WORKS WITH ITS FOUNDERS IN LARGE PART. SO PAST SCOUTS HAVE BEEN THE FOUNDERS OF WHATSAPP AND DROPBOX AND THUMB TACK AMONG OTHERS. SO I’M WONDERING WHEN YOU WERE SEARCHING OUT THE FIRST PATCH, WERE YOU LOOKING AT PEOPLE WHO HAVE TIES SPECIFICALLY TO ATOMICO OR WAS THAT NOT NECESSARILY A PREREQUISITE?>>ACTUALLY KIND OF THE OPPOSITE. THE WHOLE IDEA OF THE PROGRAM IS ALSO TO EXPAND OUR NETWORK. AND WE ALREADY HAVE A REALLY GOOD SORT OF RELATIONSHIP AND WE DO DEALS TOGETHER WITH SOME OF THE PEOPLE THAT WE HAVE INVESTED IN, ET CETERA. SO I FEEL LIKE WE HAVE A GOOD STRONG NETWORK, BUT WE WANTED TO BROADEN IT AND REACH EVEN FURTHER. SO THE PEOPLE ON THE LIST, THEY ARE NOT ALL FOUNDERS. SO WE ARE THINKING OF IT IN A S. WE BELIEVE IT IS THE PEOPLE IN THE MIDST OF THE ECOSYSTEM AND ARE CONNECTED TO A LOT OF GOOD TALENT.>>AND ONE THING THAT IS SORT OF TRICKY WITH THESE PROGRAMS HAS BEEN HISTORICALLY I GUESS WHEN YOU SORT OF DISCLOSE AS A FOUNDER OR AN OPERATOR APPROACHING ANOTHER FOUNDER THAT YOU LIKE AND WANT TO LEARN FROM AND POEB ISSIBLY INVEST IN, THAU ARE WORKING ON BEHALF OF A VENTURE FIRM. SO AT WHAT POINT — HAVE YOU THOUGHT THROUGH SORT OF HOW SOON INTO THOSE CONVERSATIONS THEY WILL SAY I’M PART OF ATOMICO’S ANGEL PROGRAM?>>SO WE WANTED TO BE SORT OF THE TRANSPARENT. AND THE ANGELS ALWAYS TELL THE ENTREPRENEURS WHERES MONEY IS C — WHERE THE MONEY IS COMING FROM AND THEY PICK THE COMPANIES INDEPENDENTLY. AND WE TRUST THEIR DECISION AND WE DON’T, YOU KNOW, HAVE A SAY IN WHAT COMPANIES THEY DECIDE TO INVEST IN.>>AND I GUESS ARE YOU CONCERNED AT ALL ABOUT THAT BEING SORT OF HAVING A CHILLING EFFECT? IT IS A LITTLE BIT DIFFERENT WHEN YOU SIT DOWN WITH A PEER WHO STARTED A COMPANY AND YOU’RE LIKE TELL ME WHAT IS GOING ON. WHEN WE SAY I’M SORT OF HERE IN THE CAPACITY AS AN ANGEL WHO COULD POTENTIALLY, YOU KNOW, BE WORKING WITH ICHLTATOMICO, I’M WONDERING IF THAT CHANGES THE CONVERSATION. HAVE YOU HAD TALKS YET MAYBE I SHOULD ASK.>>I DID NOT SPECIFICALLY HAVE TALKS FOR THIS PROGRAM BECAUSE I HAVE TALKS ALL THE TIME. SO I THINK THAT IT COMES NATURALLY TO ME. IT IS NOT SOMETHING THAT I WOULD SPECIFICALLY TALK TO SOMEONE BECAUSE OF THIS PROGRAM. I HAVE FRIENDS IN THE NETWORK, I MEET PEOPLE ALL THE TIME, I COME ACROSS GREAT BUSINESS IDEAS OR BUSINESS IDEAS, NOT ALWAYS GREAT BUSINESS IDEAS. AND THEN FOR EXAMPLE IF I HAVE AN INTEREST OF PUTTING MY OWN MONEY, I COULD SAY LOOK, THERE IS ANOTHER OPPORTUNITY WE HAVE HERE. AND WHAT I SPECIFICALLY LIKED ABOUT THE PROGRAM IS REALLY WHAT IS BEHIND IT. SO IT IS NOT JUST ME SAYING THIS IS ANOTHER XYZA COMING FROM ATOMICO, BUT THAT THEY ALSO OPEN A NETWORK. I’VE RECENTLY HAD THE CHANCE TO GO TO LONDON TO PARTICIPATE IN THEIR FOUNDERS EVENT AND IT WAS REALLY FANTASTIC. THERE WERE THE BEST SPEAKERS, I COULD TALK TO EVERYONE AND I GOT LIKE SO MUCH REALLY TOP NOTCH CONVERSATIONS WHERE I LEARNED SO MUCH THAT I THINK FOR EVERY EARLY STAGE FOUNDER, IT CAN ONLY BE A HUGE BENEFIT. SO THIS IS HOW I LOOK AT IT. IT IS ALWAYS THE FOUNDER DECIDES IF HE TAKES THE MONEY OR NOT. SO THAT IS WHY IT IS AN OFFER. BUT I THINK THAT IT COMES WITH GREAT EXTRAS.>>AND SO DOREEN MENTIONED MAYBE SHE WRITES A CHECK AND THEN ALSO SAYS THERE MAY BE AN OPPORTUNITY FOR YOU TO SORT OF TAKE ON MORE MONEY. WHAT IF YOU ARE DEALING WITH SOMEONE WHO SEES A GREAT OPPORTUNITY AND WANTS TO PERHAPS INVEST MORE CAPITAL THEIR ATOMICO’S?>>THEY ARE FREE TO INVEST THEIR OWN MONEY.>>AND WHAT ABOUT SHARING INFORMATION, IS THE COHORT ALLOWED TO SORT OF TALK TO EACH OTHER ABOUT WHAT THEY ARE SEEING OR IS THERE SOME SORT OF A NETWORK THAT YOU ARE BUILDING HERE?>>ONE THING THAT I REALLY LOOK FORWARD TO IS TO BUILD SORT OF ALMOST LIKE A COMMUNITY OF US THAT ARE DOING ANGEL DEALS. MOSTLY BECAUSE THERE IS SO MUCH STUFF THAT WE WANT TO LEARN FROM EACH OTHER AND TALK ABOUT. AND ALSO TO SHARE DEALS. SO WE ARE KIND OF ENABLING THOUGH THOSE CONVERSATIONS TO HAPPEN AND THE ANGELS WILL HAVE FUN DOING IT. BUT WHEN IT COMES TO INFORMATION SHARING, THERE IS NOTHING THAT THEY NEEDED, NO REQUIREMENTS FOR THAT.>>AND WHAT IS THE POLICY AROUND INFORMATION RIGHTS THAT YOU ARE GETTING? SO THEY ARE ALLOWED TO TALK IF THEY WANT. ARE YOU SORT OF EXPECTING THEM TO SORT OF TALK TO YOU OR IS THERE SORT OF A WALL AND THEY SHOULDN’T BE TALKING TO YOU ABOUT ANYTHING?>>THERE ARE NO EXPECTATIONS FROM OUR END, BUT OBVIOUSLY IF THEY WANT TO IN THE FUTURE. BUT IT IS KIND OF IBNDEPENDENT.>>WHAT ABOUT RIGHT OF FIRST REFUSAL. IF YOU DECIDE THAT YOU WANT TO GET INVOLVED, I’M GUESSING IT IS MUCH MORE INFORMAL, BUT JUST TO MAKE CLEAR FOR — >>YEAH, IT IS SOMETHING THAT WE WILL DO TOGETHER WITH ANGEL. ANGEL IS THE ONE SITTING ON THE RELATIONSHIP AND COMING BACK TO THAT WE REALLY TRULY BELIEVE THAT THE RELATIONSHIP IS ONE OF THE MOST IMPORTANT THINGS. SO WE WILL MAKE THE DECISION TOGETHER.>>WHETHER YOU ARE GOING TO INVEST. BUT YOU DON’T HAVE A RIGHT OF FIRST REFUSAL?>>NO, I THOUGHT YOU MEANT IF THERE WAS A LIQUIDITY EVENT LATER ON. THAT WILL BE IN TANDEM WITH THE ANGEL. BUT THE INVESTMENT PROCESS, THE ANGELS ARE FREE TO MAKE THE INVESTMENT THEMSELVES.>>AGAIN SORT OF GOING BACK TO MY EARLIER POINT, THING ABOUTEST SORT OF WRINKLE, COMPLICATION, WITH THESE PROGRAMS IS SIGNALING RISK TO STATE THE OBVIOUS, WHICH MEANS THAT ATOMICO OR ANOTHER FUND WRITES A CHECK THROUGH ONE OF THESE SCOUTS OR ANGELS TO THE STARTUP, AND THEN THE STARTUP IS SORT OF TAGGED IN A WAY. AND SO IF ATOMICO DECIDES ONCE IT DOES MATURE THAT IT IS MAYBE NOT THE RIGHT FIT, IT CAN SORT OF PERHAPS HAMPER THAT COMPANY. HOW DO YOU SORT OF GET AROUND THAT? OR WHY DO YOU THINK THAT IS NOT AN ISSUE?>>I ACTUALLY AM NOT SO WORRIED ABOUT THAT. MAINLY BECAUSE WE HAVE DONE ANGEL INVESTMENTS BOTH ME AND NICHOLAS, AND MANY HAVE NOT BEEN FUNDED BY ATOMICO IN THE LATER STAGES, BUT IT STILL HASN’T HARMED THE COMPANY OR BEEN A PROBLEM SO FAR.>>IT IS REALLY HAVE OPINION ON IT, BUT I THINK THERE ARE EVEN FUNDS IN EUROPE THAT HAVE SIMILAR PROGRAMS THAT AREN’T SO PUBLIC ABOUT IT. SO I JUST WONDER WHY NOT. SO LET’S TALK A LITTLE BIT ABOUT THE ECONOMICS. IN SEQUOIA’S CASE, AND I’M SURE SIMILAR PROGRAMS THAT HAVE MODELED THEMSELVES AFTER IT, THE SCOUT WHO FINDS THE INVESTMENT SORT OF REAPS THE REWARD FROM THE INVESTMENT TO A SIGNIFICANT DEGREE I GUESS. SEQUOIA’S LIMITED PARTNERS DO. AND THEN THE PEOPLE IN THE SCOUT PROGRAM AND THE GENERAL PARTNERS THEMSELVES SORT OF BENEFIT TO A SLIGHTLY LESSER EXTENT. YOU CAN TELL US A LITTLE BIT ABOUT HOW THE ECONOMICS WORK HERE?>>YEAH. SO WE DON’T DISCLOSE THE NUMBERS AS WE NORMALLY DON’T, BUT THERE IS THE PERSONAL CARRY FOR THE ANGELS WHICH IS PRETTY GOOD AND I WOULD SAY ABOUT INDUSTRY STANDARD. AND THEN THERE IS THE POOLED CARRY, SO THAT IF ONE ANGEL DO REALLY WELL, THE OTHERS GET BENEFIT FROM IT.>>OKAY. AND IS THE ARRANGEMENT EXCLUSIVE? DO THEY HAVE TO WORK ONLY WITH YOUR — >>YEAH, IT IS FOR ONE YEAR AND IT IS EXCLUSIVE TO ATOMICO ANGEL PROGRAM ONLY. SO YOU CANNOT BE PART OF TWO PROGRAMS AT THE SAME TIME.>>AND HOW MUCH MONEY DO YOU HAVE TO INVEST?>>IT IS 100 K PER YEAR.>>SO THAT IS BASICALLY ONE TO TWO CHECKS ESSENTIALLY.>>DEPENDING ON ALSO WHAT MARKET YOU ARE OPERATING IN AND WHAT TYPE OF SIZE OF THE CHECKS THAT YOU WANT TO WRITE. I THINK PEOPLE HAVE DIFFERENT PHILOSOPHIES THERE. BUT YEAH MINIMUM TWO DEALS WITH THAT.>>AND SO I THINK THE IDEA — I DON’T KNOW IF WE’VE SAID THIS ALREADY. THERE ARE 12 ANGELS TO START, SO THEY EACH HAVE $100,000 TO SPEND OVER THE COURSE OF ONE YEAR. WHAT IF YOU — AND THEN YOU WILL BE INTRODUCING A NEW CLASS. WHAT HAPPENS IF IT TURNS OUT THAT SOMEBODY IS A PARTICULARLY GOOD ANGEL, WOULD YOU INVITE THEM BACK?>>YEAH, I THINK WE’RE UP FOR THAT. AND ALSO ONE PART OF THE ONE YEAR THING IS THAT WE WANT TO, YOU KNOW, HAVE A GOOD FLOW OF NEW TALENT COMING IN AND ALSO WE DON’T WANT TO HAVE THE OLD SCHOOL SORT OF BOYS’ CLUB. TA IT IS A SMULD ALL GROUP OF PEOP. WE WANT TO BE MORE INCLUSIVE.>>AND YOU SAID THAT YOU ARE STARTING TO INVEST YOURSELF, OR YOU ARE AN LP IN A FUND. WHAT IS YOUR EXPERIENCE LIKE RAISING MONEY? I GUESS AS A FOUNDER, HOW MUCH OF AN IMPACT DO YOU THINK A GOOD ANGEL INVESTOR CAN HAVE?>>THAT IS A REALLY GOOD QUESTION. SO I MEAN, WE JUST FINISHED UP A FUND RAISING ROUND, SO THERE ARE A LOT OF THINGS THAT ARE GREEN IN MY MIND TO SHARE. BUT YOU KNOW, I THINK THAT IT IS QUITE CRITICAL ESPECIALLY IN THE EARLY ON OF YOUR JOURNEY TO GET ANGEL INVESTORS THAT BELIEVE IN YOUR MISSION OF WHAT YOU WANT TO ACCOMPLISH. I THINK THAT IS QUITE CRITICAL TO HAVE. I THINK WHAT IS HAPPENING IS THAT IT IS NOT JUST ABOUT THE FUNDS, IT IS ALSO WHAT VALUE THEY BRING TO THE TABLE FOR YOU. THAT IS QUITE IMPORTANT. FOR US THAT IS THE CRITERIA WHEN WE WERE PICKING ANGEL INVESTORS. SO IT IS ABOUT THEM UNDERSTANDING YOUR VISION, BELIEVING IN YOUR STRATEGY, HOW YOU WANT TO DO IT AND ALSO BRINGING IN SOMETHING VALUABLE TO THE TABLE. AND IT COULD BE ANYTHING FROM, YOU KNOW, SCALING EXPERIENCE TO MARKETING EXPERIENCE TO UNDERSTANDING PRODUCTS TO IT COULD BE JUST FUND RAISING EXPERIENCE AS WELL. AND I THINK FOR US THIS WAS REALLY IMPORTANT BECAUSE WHEN WE WERE SO YOUNG FOR THE FIRST YEAR, IT WAS OUR ANGEL INVESTORS THAT SOUGHT OUR JOURNEY INSIDE OUT. WE HAD A LOT OF LATE NIGHTS AND A LOT OF SUCCESSES IN THE FIRST YEAR TOO, BUT THE FIRST PEOPLE THAT WE REALLY WANTED TO SHARE IT WITH WERE OUR ANGELS. AND I THINK THAT IS THE TYPE OF RELATIONSHIPS YOU SHOULD HAVE. AND AS WE WERE STARTING TO RAISE OUR FUNDS FOR THIS ROUND, I MEAN OUR AN GEM — ANGELS WERE THE ONES CONNECTING US. AND THEY GET TO KNOW YOUR BUSINESS INTIMATELY AND THEY HAVE A 4– IF THEY HAVE GREAT CONNECTIONS IN THE COMMUNITY, THEY CAN BRIDGE THAT GAP FOR YOU ESPECIALLY IF YOU ARE A FIRST OR SECOND TIME FOUNDER OR MIGHT NOT KNOW SOME OF THE INVESTORS IN THE INDUSTRY. SO I THINK THOSE THINGS WHERE QUITE CRITICAL AND THAT IS HOW WE HAVE ACTUALLY HAD OUR ANGELS. IT’S BEEN ALSO INTERESTING FOR US THAT WHEN WE RAISED OUR LAST ROUND, THE VCs WERE E-MAILING OUR ANGELS AND ASKING OUR ANGELS TO GET IN TOUCH WITH US AND TO LET’S US KNOW THAT THEY ARE GOOD VCs FOR US TO WORK WITH. SO I THINK THAT THAT IS ALSO A REALLY GREAT CHANNEL FOR YOU TO USE YOUR ANGELS AS A SHIELDING WHEN YOU HAVE QUITE A FEW VCs. SO I THINK FOR US THIS HAS BEEN A GREAT WAY TO MOVE TO THE NEXT LEFT AND I THINK NOW WE ARE THINKING ABOUT HOW TO STILL HAVE OUR ANGELS BE ACTIVELY INVOLVED AS WE ARE GETTING BIGGER. BUT I THINK IN THE INITIAL STAGES THAT BECOMES VERY IMPORTANT TO HAVE THE RIGHT ANGELS.>>AND DOREEN, YOU HAVE A LITTLE BIT MORE EXTENSIVE EXPERIENCE AS AN ANGEL INVESTOR. SO HOW DOES YOUR APPROACH TO OTHER FOUNDERS IN THE CAPACITY OF ANGEL INVESTOR — HOW IS THAT IMPACTED BY YOUR OWN EXPERIENCE AS A FOUNDER?>>I WOULD SAY A LOT BECAUSE I CAN ONLY AGREE ANGEL INVESTORS I THINK IN ALL OF MY COMPANIES WE HAD FANTASTIC ANGEL INVESTORS AND THEY WERE INSANELY HELPFUL IN THE BEGINNING ESPECIALLY BECAUSE THEY ARE MOST OF THE TIMES BRUTALLY HONEST AND SOMETIMES THE MORE MATURE A COMPANY GETS AND THE MORE VCs YOU BRING ON BOARD, IT IS NOT HAPPENING IN SUCH AN HONEST ENVIRONMENT ANYMORE BECAUSE ANGELS ARE MORE LIKE THE ENTREPRENEUR BUDDIES BASICALLY. THEY GIVE YOU HONEST FEEDBACK, THEY CHALLENGE YOU A LOT. IT FEELS LIKE ANGELS ARE SO EARLY ON BOARD THAT THEY ARE REALLY ON BOARD WITH THE VISION AND EVERYTHING. SO FROM THAT PERSPECTIVE, I ALWAYS TRY TO BRING MY EXPERIENCE ALSO TO MY ANGEL INVESTMENTS. OF COURSE IT ALWAYS DEPENDS ON HOW MUCH RELATIONSHIP YOU HAVE WITH THE COMPANIES AND ALSO AT SOME POINT I THINK ALSO OVER THE YEARS I INVESTED IN ROUND ABOUT 20 COMPANIES AND YOU CANNOT SUPERVISE ALL OF THEM ALL THE TIME BECAUSE THEN IT BECOMES A FULL-TIME JOB. BUT I ALWAYS MEET WITH I WOULD SAY PROBABLY 80%FOUNDERS. WE EITHER JUMP ON A CALL OR MEET FOR LUNCH OR SO AND KEEP EACH OTHER POSTED. AND TRY TO GIVE THEM ALL MY KNOWLEDGE WHATEVER I SAW ON MY WAY. AND I THINK THAT IS WHY IT IS A SUPER FANTASTIC OPPORTUNITY TO DO THIS NOW EVEN WITH ATOMICO AS A PARTNER.>>AND ONE LAST QUESTION ON THE PROGRAM. YOU MENTIONED SOMETIMES INVESTING AND NOT BEING ABLE TO SPEND A LOT OF TIME WITH COMPANIES WHICH I THINK IS THE SITUATION WITH A LOT OF ANGEL INVESTORS. SOMETIMES THEY SPEND A LOT OF TIME WITH THE COMPANIES, SOMETIMES THEY DON’T. DO YOU CARE — DO THE ANGELS HAVE LIKE FULL AUTONOMY OR IF THEY WANT TO JOIN SORT OF — IN THE UNITED STATES IT IS CALLED A PARTY ROUND WHERE THERE ARE MANY INVESTORS INVOLVED IN A STARTUP WHICH HAPPENS OCCASIONALLY AND OFTEN DIDN’T OESN’T TURN OUT TE WELL. DO YOU CARE IF THERE ARE MANY PARTICIPANTS IN A ROUND OR IS THAT NOT A CONCERN?>>NO, ACTUALLY WE 2RTRUST THE ANGELS TO MAKE THAT JUDGMENT TO SEE IF IT IS A HEALTHY GROUP.>>AND BEFORE WE GO, I DID PROMISE THE FOUNDERS HERE THAT I WOULD ASK YOU ABOUT PITFALLS AND HOW BEST TO SCALE THEIR BRAND. SO IF IT IS NOT TOO RIDICULOUS A QUESTION, DO YOU HAVE ANY QUICK TIPS AND TRICKS THAT YOU CAN SHARE?>>I THINK BE RELENTLESS. UNDERSTAND WHO YOU ARE AND WHAT YOU STAND FOR AND MAKE SURE TO COMMUNICATE THAT IN ALL OF YOUR CHANNELS AND REPEAT YOUR CORE MESSAGE AS OFTEN AS YOU CAN. AND THEN HIRE PEOPLE THAT ARE AS PASSIONATE AS YOU ARE ABOUT THE MISSION YOU ARE ON AND MAKE SURE THAT YOU HAVE FIGURED OUT THE CORE VALUES BECAUSE IF YOU HIRE ON THOSE CORE VALUES, IT WILL BE A MUCH MORE FUN AND SMOOTH RIDE. SO I THINK DO YOUR HOMEWORK WHEN IT COMES TO HIRING AND ALSO HAVE A BRAND STRATEGY AND A BRAND POSITION WELL WORKED OUT THAT YOU THEN OPERATE FROM. I DON’T KNOW IF THAT MADE SENSE.>>SURE. LESSON NUMBER ONE, HIRE WELL. GUYS, THANK YOU SO MUCH FOR JOINING US. WE REALLY APPRECIATE IT.>>THANK YOU SO MUCH.>>THANKS.>>>IT IS NOT VERY OFTEN THAT YOU HEAR OF A COMPANY THAT HAS 100 MILLION DOWNLOADS OF ITS APP AND ZERO DOLLARS IN VC FUNDING. IN SILICON VALLEY, IT IS MOST OFTEN THE INVERSE. SO WITH THAT, I’D LIKE TO BRING OUT OUR NEXT GUEST PLEASE WELCOME TO THE STAGE DENYS ZHADANOV AND YOUR MODERATMODERA.>>HI, EVERYBODY.>>HI, GUYS.>>THANKS FOR JOINING US. OKAY. LET’S GET TO THIS. NOW, YOU GUYS, DENYS, HAVE HAD A PRETTY AMAZING RUN SO FAR. YOU HAVE GONE FROM BEING A BOOT STRAPPED STARTUP TO 100 MILLION DOWNLOADS OF YOUR APPS. THAT IS A BIG, BIG DEAL. CONGRATULATIONS.>>THANK YOU.>>IT HASN’T ALWAYS BEEN EASY. IN YOUR TIME YOU’VE HAD 32 FAILURES. CAN GIVE US THE SHORT VERSION VERY QUICKLY ON HOW YOU GUYS WENT FROM ZERO TO HERO?>>SURE. SO I THINK IT IS BACK IN 2007 WHEN THE iPHONE WAS LAUNCHED THE FIRST TIME, THERE WAS NO APPS. SO THERE WAS NO WAY TO READ STUFF ON YOUR iPHONE. AND WE FIXED THAT, WE MADE A SERVICE. THAT IS WHERE THE COMPANY’S NAME IS READDLE FROM READ. WE QUICKLY GOT 60,000 USER, STILL NOT MAKING MONEY. AND THEN WE GOT A CALL FROM APPLE AND THEY SAID WE’RE LAUNCHING AN APP STORE. IF YOU WANT TO BE FEATURED ON THE FIRST DAY, MAKE AN APP, HERE IS THE DEADLINE. SO HERE IS HOW IT STARTED.>>SO AN EARLY MOVER ADVANTAGE.>>YES.>>BUT LIKE EVERYONE WANTS TO GET APPLE’S ATTENTION. THEY HAVE BEEN A BIG DEAL. WHEN THEY WERE DOING THE iPHONE AND THE APP STORE, EVERYONE WANTED A PIECE OF APPLE. HOW DID YOU MANAGE TO CATCH THEIR ATTENTION AND GET TO TALK TO THEM?>>SO I GUESS IT IS ABOUT THE PRODUCT AND AS I MENTIONED, WE GOT 60,000 USERS OF OUR PRODUCT EARLY ON AND THEN IT CAUGHT THEIR ATTENTION AND THEY EVEN PUT A LINK ON THEIR WEBSITE ON APPLE.COM TO USREADDLE IF YOU WANT TO READ A BOOK OR PAPER. AND MY BROTHER KNEW SOMEBODY FROM HIS PREVIOUS JOB AND SO IT MAKES EASIER WHEN YOU KNOW SOMEBODY THERE.>>SO HE HAD A CONTACT WITHIN AM APPLE.>>SO IF YOU ARE A STARTUP AND YOU WANT APPLE’S ATTENTION, WHAT WOULD YOU RECOMMEND?>>I THINK COMPANIES LIKE OURS, THEY HELP THEM AND THEY MADE THEIR DEVICES BETTER. SO IT IS FAIRLY EASY RIGHT NOW TO KIND OF FIND WHO IS RESPONSIBLE IN THIS AREA OR LET’S SAY FROM EDITORIAL SIDE OR FROM DEVELOPER RELATIONS SIDE AND IT IS PRETTY EASE. LIKE ASK AROUND A COUPLE PEOPLE FROM APPLE OR GOOGLE OR OTHER COMPANIES KIND OF WHO IS IN CHARGE OF THIS.>>AND LET’S ME TURN THAT AROUND. YOU WERE TALKING TO APPLE EARLY. YOU SAID THEY CAME UP TO YOU BECAUSE THEY APPROACHED YOU BECAUSE THEY DIDN’T HAVE WHAT IN THEIR OWN PRODUCT SET. AND THEY HAVE BEEN DOING LIKE INCREASINGLY MORE AND MORE SOFTWARE THEMSELVES.>>YEAH.>>DOES THAT WORRY YOU GUYS AT ALL?>>WELL, FOR THOSE WHO DON’T KNOW, LIKE YOU MIGHT NOT HAVE HEARD ABOUT READDLE BEFORE, BUT WE HAVE A PORTFOLIO OF EIGHT PRODUCTIVITY APPS THAT MANY OF YOU HOPEFULLY USED LIKE E-MAIL, SCANNER TO SCAN DOCUMENTS, THE APP KACALLED DOCUMENTS WHICH IS FILE MANAGER. SO APT PLE MOVED INTO PRODUCTIV WITH IOS 11. DOING FILE APPS, SCANNING, PDF WHICH IS SIMILAR TO WHAT WE DO. THE WAY WE LOOK AT THIS, IF OUR WORK CAN INSPIRE ONE THE BIGGEST COMPANIES TO MOVE INTO THIS AREA, WE ARE DOING SOMETHING RIGHT, BUT WE HAVE TO BE VERY FAST AND LIKE MOVE — RUN ARE FASTER BECAUSE THERE IS NO WAY THAT YOU CAN COMPETE WITH GIANTS LIKE APPLE, GOOGLE AND MICROSOFT.>>BEFORE THEY DID ALL THAT THOUGH, DID THEY EVER TRY TO ACQUIRE YOU GUYS?>>I’M NOT ALLOWED TO TALK ABOUT THIS.>>YOU’RE IN THE NOT ALLOWED TO ABOUT IT BECAUSE — I MEAN, WE’VE HAD DIFFERENT OFFERS FROM DIFFERENT PARTNERS, BUT WE NEVER DISCUSS AND DISCLOSE PUBLICLY EITHER THESE TALKS OR OUR REVENUES, BECAUSE WE ARE STILL PRIVATE. >>OKAY. BUT YOU HAVE BEEN APPROACHED. YOU CAN’T SAY WHETHER BY APPLE OR ANYONE ELSE. >>LIKE THROUGH OUR LIFETIME?>>YES. >>FOR ACQUISITION?>>YEAH. >>THERE WAS SOME TALKS. >>OKAY. THERE WERE SOME TALKS. >>FROM, I MEAN, YEAH, OVER THE COURSE OF — FROM AN INVESTMENT PERSPECTIVE, FROM AN ACQUISITION PERSPECTIVE, A COUPLE OF TIMES. >>OKAY. WE’LL GET BACK TO INVESTMENT IN A SECOND. BUT WITH APPLE, THEY ARE — DO YOU STILL HAVE CONVERSATIONS WITH THEM, OR WAS THAT REALLY AN EARLY DAYS THING OR DO YOU KEEP IT UP WITH THEM NOW?>>CONVERSATIONS ABOUT?>>APP DEVELOPMENT. >>OH, YEAH. OH, YEAH. >>PLACEMENT. >>EACH CATEGORY PLAYER TALKS TO THE — AND WE MANAGED TO SURVIVE FOR TEN YEARS FROM VERY EARLY ON, BUILD GREAT PRODUCTS, HAVE LIKE TENS OF MILLIONS OF ACTIVE USERS ON OUR PLATFORMS AND WHO ARE USING OUR PRODUCTS. AND OF COURSE, WE WILL SUPPORT THE NEWEST DEVELOPMENTS. FOR EXAMPLE, IF APPLE LAUNCHES NEW iPAD RECENTLY, RIGHT, WITH THE NEW PENCIL, WE WOULD SUPPORT THIS DAY ONE. IF IT’S A NEW APPLE WATCH, WE WANT TO BE THERE ON DAY ONE, AND WE WANT — MOSTLY WE’RE DOING THIS BECAUSE OF OUR USERS. WE WANT TO GIVE THEM THIS LATEST TECHNOLOGY. >>OKAY. NOW, YOU MENTIONED YOU DON’T REALLY COMMENT ON WHO MIGHT HAVE TRIED TO ACQUIRE YOU OR IF ANYONE’S EVER TRIED TO. WHAT’S INTERESTING IS THAT YOU ARE COMPLETELY BOOTSTRAPPED. >>YES. >>YOU HAVE NEVER RAISED OUTSIDE FUNDING, WHICH IS PRETTY SIGNIFICANT FOR A START-UP THAT’S GOTTEN TO 100 MILLION DOWNLOADS, TO BE ABLE TO HAVE DONE QUITE ALL OF THAT WITHOUT GROWTH FUNDING. BUT WHEN WE TALKED IN SEPTEMBER, YOU TOLD ME THAT YOU GUYS MIGHT START LOOKING FOR FUNDING. TELL US ABOUT THAT.>>SO, WE WERE LUCKY ENOUGH TO HAVE OUR VERY FIRST PRODUCT TO BE A HIT PRODUCT, AND WE WERE MAKING MONEY FROM EARLY ON. OF COURSE, WE FAILED MANY TIMES AND LEARNED A LOT, AND WE BELIEVE THAT YOU ARE BETTER OFF AS AN ENTREPRENEUR WHEN YOU CAN MAKE MONEY. WHEN YOU CAN RAISE MONEY AND YOU CAN SPEND MONEY — I CAN SPEND MONEY. EVERYBODY CAN SPEND MONEY. >>LET ME ASK YOU, HOW MANY START-UPS ARE OUT HERE? CAN YOU RAISE YOUR HAND IF YOU’RE IN A START-UP? RAISE YOUR HAND IF YOU’RE IN A START-UP. RAISE YOUR HANDS, UP HIGH. OKAY. KEEP YOUR HAND UP IF YOU ARE BOOT-STRAPPED. KEEP YOUR HAND UP IF YOU’RE BOOT-STRAPPED. WELL DONE, GUYS.>>WE HAVE SOME HANDS. >>GOOD JOB. >>GOOD JOB, GUYS. >>OKAY. DO YOU WANT TO LISTEN TO THIS? THIS GUY’S NEVER RAISED ANY MONEY, NONE. $100 MILLION. >>SO, AND I BELIEVE YOU ARE BETTER OFF AS AN ENTREPRENEUR TO KIND OF, TO CREATE YOUR SKILL HOW TO MAKE MONEY, AND THAT CREATES A DIFFERENT CULTURE INSIDE, BECAUSE YOU ARE FOCUSED ON YOUR CUSTOMER, AND IT’S LIKE A PERFECT CREATION OF VALUE WHEN YOU CREATE SOMETHING THAT PEOPLE CAN USE, USERS CAN USE. USERS ARE PAYING MONEY AND PEOPLE ARE OKAY PAYING MONEY FOR THINGS THAT WORK FOR THEM. >>YEP. >>BUT YOU HAVE TO BE VOCAL ENOUGH TO EDUCATE AND TO REACH OUT TO THOSE PEOPLE WHO MIGHT USE YOUR PRODUCT. SO, NOW WE’RE AT THIS STAGE WHERE WE NOW ARE TRYING TO ACCOMPLISH A MUCH BIGGER CHALLENGE THAN EVER BEFORE. >>WHICH IS WHAT?>>WHICH IS REINVENTING E-MAIL. >>REINVENTING E-MAIL. AND THAT’S WHY YOU NEED TO RAISE MONEY. >>I’M NOT SAYING WE NEED TO. I’M SAYING WE MIGHT RAISE MONEY NEXT YEAR. >>RIGHT. >>TO SCALE FASTER AND TO LAUNCH IN DIFFERENT PLATFORMS AND TO KIND OF GLOBAL EXPANSION, AND THAT’S ONE OF THE OPTIONS — >>WHY DO YOU NEED TO DO THAT WITH OUTSIDE FUNDING? WHY CAN’T YOU DO THAT THE WAY YOU’VE DONE EVERYTHING ELSE UP UNTIL NOW?>>WE’VE BEEN DOING THIS OURSELVES FOR NOW UP TO THREE YEARS. >>YEAH. SPARK IS LIKE A 3-YEAR-OLD PRODUCT. >>I THINK IT’S 4-YEAR-OLD NOW. >>OKAY, RIGHT. >>ALSO, ONE OF THE THINGS ABOUT BEING BOOTSTRAPPED IS THAT IF YOUR VISION IS THAT YOU MIGHT NEED A COUPLE OF YEARS FOR THIS DEVELOPMENT, OR YOUR PRODUCT, YOU CAN DO IT. YOU DON’T HAVE PRESSURE FROM SOMEBODY SAYING YOU HAVE ONE YEAR. IF YOU DON’T LAUNCH, WE SHUT YOU DOWN. SO, WITH SPARK, WE’VE BEEN INVESTING OURSELVES AND REINVESTING BUILDING THIS PRODUCT. BUT ONCE WE NOW LAUNCHED SPARK FOR TEAMS AND NOW ONCE WE’VE LAUNCHED THIS, WE’LL SEE THIS GREAT PRODUCT MARKET FIT, WE MIGHT WANT TO SCALE UP OUR OPERATIONS FASTER, SCALE UP OUR SALES AND MARKETING, AND ALSO DIFFERENT PLATFORMS. EVEN MAYBE GO KIND OF WEB, WHICH REQUIRES A LOT OF INVESTMENTS. SO, THAT’S ONE OF THE OPTIONS FOR US. >>OKAY. SO, IT’S QUITE INTERESTING. I KNOW YOU GUYS HAVE BEEN PUSHING SPARK QUITE A LOT. WHAT IS YOUR BIGGEST APP RIGHT NOW? IS IT THE PDF?>>ARE WE TALKING ABOUT REVENUE OR USERS? BECAUSE THOSE ARE TWO DIFFERENT THINGS. >>FIRST WHAT IS YOUR BIGGEST APP FOR REVENUE?>>THAT’S PDF EXPERT. >>YEAH, THAT’S THE ONE I THINK MOST PEOPLE WILL KNOW YOU FOR, I THINK. >>I THINK MOST PEOPLE WILL KNOW SCANNER PRO. >>OKAY. >>AND DOCUMENTS APP.>>OKAY. >>BECAUSE THAT’S THE MOST POPULAR IN TERMS OF THE NUMBERS.>>OKAY, SO WHICH ONE? SCANNER PRO IS THE MOST POPULAR?>>DOCUMENTS.>>DOCUMENTS. >>FOR DOCUMENTS, THIS YEAR ALONE WE’VE ADDED 50 MILLION USERS, ORGANICALLY. >>15. >>15, ONE, FIVE. 15. >>15. AMAZING.>>ALL ORGANICALLY. >>WHAT’S AMAZING IS IT’S HAPPENING AT THE SAME TIME ALL OF THE NATIVE PLATFORMS ARE BEEFING UP THEIR OWN STUFF. >>YES, THAT’S INTERESTING. >>WHY DO YOU THINK THAT IS? WHY DO YOU THINK PEOPLE ARE FLOCKING TO AN INDEPENDENT AT A TIME WHEN THE NATIVE VERSIONS ARE JUST GETTING, IF ANYTHING, BETTER AND BETTER?>>SO — >>AND FREE. >>I HAVE A GOOD STORY. BACK THEN WHEN WE LAUNCHED OUR PDF EXPERT, BACK IN THE DAY, WE WERE THE FIRST ONE TO LAUNCH THIS PDF EDITING FOR iPAD. IN TWO YEARS’ TIME OR ONE YEAR TEAM, ADOBE LAUNCHED ITS FREE PDF READER. AND I WOULD GET E-MAILS LIKE, DENYS, YOU’RE OUT OF BUSINESS. >>THAT’S IT. >>THIS FREE APP. YOU’RE GONE. GO AWAY. WHAT HAPPENED IN REALITY, OUR SALES INCREASED ALMOST 50%. I THINK WHAT HAPPENS IS THAT ONCE LIKE THE BIG PLATFORM OR A PLAYER EDUCATES A MARKET, EDUCATES PEOPLE THAT YOU CAN DO THIS STUFF ON YOUR MOBILE OR iPAD OR MAC, SOME OF THEM MIGHT WANT SOMETHING MORE LIKE ADVANCED, MORE PROFESSIONAL, SAY WITH A DIFFERENT USER EXPERIENCE OR FASTER. SO, I THINK THAT’S WHERE WE COME IN, BECAUSE WE DO PERFECT OUR DESIGNS. WE DO LIKE PART OF OUR DESIGN WITH SEVEN DESIGNERS AND TRYING TO REALLY NAIL THE EXPERIENCE, AND THAT’S WHAT PEOPLE KIND OF — THAT’S WHAT THEY LOVE AND THAT’S WHY THEY GET THE APPS. >>OKAY. THAT’S FAIR ENOUGH. I MEAN, I THINK THAT WE’VE SEEN THAT REPEATED ACROSS A TON OF DIFFERENT APPS, YOU KNOW, WHERE THE NATIVE PLATFORM DOES IT, AND YET, THERE’S STILL GOING TO BE A THIRD PARTY THAT JUST GETS MORE.>>YES, ALL THOSE APPS. >>SLACK. >>AND SLACK.>>YOU KNOW THERE’S A BUNCH. DROPBOX. SO, YOU KNOW, WITH YOUR KIND OF GRADUAL EXPANSION OF APPS, I WANT TO GO BACK TO SPARK FOR ONE SECOND. SO, NOW, THAT’S FOUR YEARS OLD. WOULD YOU SAY IT’S A SUCCESS NOW, OR IS IT STILL NEEDING MORE TIME? YOU GUYS ARE TALKING ABOUT INVESTING MONEY INTO IT. YOU’RE REALLY, REALLY PUTTING A LOT INTO SPARK. WOULD YOU SAY IT’S A SUCCESS, OR IS THERE A POINT AT WHICH YOU’LL SAY, YOU KNOW WHAT, IT’S — >>IT’S NOT YET. >>IT’S NOT YET? WHEN ARE YOU GOING TO CALL TIME ON SPARK?>>WE WILL MAKE IT A SUCCESS.>>YOU’LL MAKE A SUCCESS. YOU’RE REALLY, REALLY COMMITTED.>>WE’RE REALLY COMMITTED TO MAKING IT A SUCCESS. >>WHY ARE YOU SO FOCUSED ON E-MAIL? WHY DO YOU THINK IT HAS TO BE SOMETHING YOU WIN?>>ANOTHER STORY. BACK IN 2014, WE HAD ALL OUR APPS AND TOP CHARTS WERE MAKING GREAT AMOUNT OF MONEY. >>YEAH. >>IT COULD BE LIKE A GREAT LIFESTYLE BUSINESS, BUT THEN WE THOUGHT LET’S SOLVE A MUCH BIGGER PROBLEM. LET’S TRY TO FIX SOMETHING. AND ALEX, OUR FOUNDER, RUNS INTO THE ROOM AND SAYS, GUYS, I KNOW, WE CAN FIX E-MAIL! WE’RE LIKE, MM-MM. SO, HE CONVINCED US AND THEN WE REALLY BELIEVED IN THIS. I TOOK ALEX, WE FLEW TO SILICON VALLEY AND TALKED TO LIKE 80 PEOPLE THERE TRYING TO FIGURE OUT WHAT’S THE PROBLEM WITH E-MAIL. >>WHAT KIND OF PEOPLE?>>EVERYBODY LIKE IN TECH SPACE.>>WAIT, DID YOU TRY TO RAISE MONEY ALREADY?>>NO, GETTING FEEDBACK. >>OKAY. >>YES. >>THAT’S CALLED SOFT MARKETING.>>SO, EVERYBODY WAS LIKE, YEAH, YOU’RE TRYING TO SELL E-MAIL? GOOD LUCK. SO, RIGHT NOW FOR SPARK, WE DO HAVE MORE THAN 500,000 DAILY ACTIVE USERS AND NOW WE’RE PUSHING HARD INTO TEAMS. AND WE BELIEVE THAT WE CAN HELP PEOPLE TO SAVE TIME IF WE — >>LIKE A COMMON INBOX THING. >>YES. IF WE SAVE ONE HOUR PER DAY FOR EACH PERSON, I WILL BE HAPPY AND THAT WILL BE A SUCCESS, AND THAT WILL TRANSLATE INTO THE FINANCIAL RESULTS. >>OKAY. BECAUSE YOU’RE DOING IT AS A PAID PRODUCT, RIGHT?>>SPARK IS FREE.>>BUT ARE YOU GOING TO LAUNCH IT AS PAID?>>SO, THE TEAMS. WE HAVE TO END UP WITH THE SLACK MODEL. AS YOU SAW USING IT, ONCE YOU TRY IT, YOU CANNOT GO BACK TO NORMAL E-MAIL. THEN THERE’S LIKE SPARK PREMIUM FOR TEAMS AND THE TEAMS WILL UPGRADE TO KIND OF ONGOING SUBSCRIPTION.>>IS THERE ALREADY?>>WE’RE ADDING — >>IT’S A PRETTY RECENT LAUNCH. >>YES.>>SO, HOW HAS THAT BEEN GOING SO FAR?>>I THINK WE HAVE THOUSANDS OF TEAMS. >>RIGHT. >>BUT ONLY LIKE TENS AND HUNDREDS ARE PAYING. >>RIGHT. >>SO, WE’RE STILL FIGURING OUT THE EXACT PRODUCT MARKET FIT. AND I FEEL WE’RE LIKE 1% AWAY FROM KIND OF HITTING THAT POINT.>>I GOT IT. OKAY, LET ME JUST PUT IT THIS WAY NOW. YOU’VE GIVEN US A REALLY INTERESTING PICTURE OF, LIKE, HOW IT’S TAKEN FOUR YEARS. YOU STILL DON’T CALL IT A SUCCESS, BUT YOU’RE NOT GIVING UP ON IT YET. YOU’VE HAD 32 THINGS YOU’VE CALLED TIME ON, 32 DIFFERENT APPS. >>YEP.>>TELL ME HOW, AND TELL, YOU KNOW, ENTREPRENEURS HERE HOW YOU FINISHED, THAT IT’S JUST NOT GOING TO WORK. WHEN DID YOU DECIDE? FLIP A COIN?>>I THINK YOU CAN LOOK AT DIFFERENT DATA, YOU CAN LOOK AT DIFFERENT KIND OF POINTS AND, LIKE, WHAT’S HAPPENING. WE’RE LIKE, IS THIS A SUCCESS? IS THIS NOT? BUT I THINK — >>IS IT JUST WHEN YOU SEE IT STOP GROWING OR — >>I THINK FOR THE MAJORITY OF ENTREPRENEURS, IT’S JUST THE FEELING INSIDE, WHEN YOU KIND OF STOP BELIEVING IN THIS. >>IT’S LIKE A RELATIONSHIP. >>THEN IF YOU KIND OF TELL, LIKE SAY, LIKE SELL Y– TELL YOURSELF, I’M DONE, THIS ISN’T WORKING OUT, THEN THAT’S THE END OF IT. OTHERWISE, IF YOU BELIEVE IN SOMETHING, YOU WILL — THERE’S ITERATIONS. YOU WILL PIVOT TO SOMETHING ELSE. >>YOU THINK YOU SHOULD STAY WITH IT IF YOU BELIEVE IN IT?>>IF YOU BELIEVE IN IT. IF YOU FEEL YOU CAN SOLVE THIS PROBLEM, STAY AND SOLVE THIS PROBLEM. YOUR JOB AS AN ENTREPRENEUR, YOUR DUTY, IS TO KIND OF FUND YOUR VISION, GET A TEAM, AND SOLVE THAT PROBLEM, IF YOU REALLY WANT THAT.>>NOW, I ASKED YOU WHAT YOUR BIGGEST SELLING AND MOST REVENUE-GENERATING APPS ARE, AND YOU TOLD ME TWO DIFFERENT APPS. >>YEAH. >>WHICH IS A RELIEF. DO YOU THINK YOU GUYS HAVE MANAGED TO ESCAPE “ANGRY BIRDS” SYNDROME? DO YOU KNOW WHAT I MEAN BY THAT?>>WHICH IS? WHICH IS THEY FAILED 50 TIMES AND THEN THEY HAD JUST ONE HIT?>>YES. >>I MEAN, WE DON’T HAVE ONE HIT — >>YOU KNEW WHAT ANGRY BIRD SYNDROME IS. >>YEAH. WE DON’T HAVE ONE HIT. ALL OF OUR FOUR OR FIVE OF OUR APPS ARE IN TOP CHARTS ON THE APP STORE WORLDWIDE. >>YEAH, YEAH. >>SO, WE HAVE THIS KIND OF, WE MANAGE TO FIGURE OUT HOW TO BUILD SUCCESSFUL PRODUCTS THAT PEOPLE LOVE AND PEOPLE USE, AND I’M NOT SAYING EACH ONE OF THEM IS A HUGE, MASSIVE SUCCESS, BUT I THINK WE MANAGE KIND OF TO GROW PAST THIS SYNDROME. >>RIGHT. YOU’VE BROKEN OUT OF THAT RUT. >>HOPEFULLY. “ANGRY BIRDS” WAS A GREAT GAME AND THERE’S STILL LOTS OF CONTENT — >>EXACTLY. YOU CAN’T FOLLOW WHAT THAT SUCCESS IS. I KNOW IT’S BEEN A DIFFICULT CLIMB FOR THEM AS A START-UP TO — OR EVEN AS A POST START-UP, AS A PUBLIC COMPANY NOW, TO GO BEYOND THAT. I MEAN, WHAT WOULD YOUR ADVICE BE FOR AVOIDING THAT?>>I MEAN, FOR THE BEGINNING, I THINK IF PEOPLE IN THE ROOM, INCLUDING MYSELF, CAN BUILD SOMETHING THE SCALE OF ANGRY BIRDS, THAT IS PRETTY PHENOMENAL. >>THAT’S SUCCESS ENOUGH.>>THAT’S SUCCESS ENOUGH. >>VERY, VERY TRUE. I WANT TO ASK YOU BEFORE WE RUN OUT OF TIME, YOU GUYS ARE BASED OUT OF UKRAINE?>>WE ACTUALLY HAVE PEOPLE IN EIGHT LOCATIONS WORLDWIDE, BUT OUR HEADQUARTERS ARE IN UKRAINE, YES. >>WHICH IS AMAZING. TO BUILD A BIG, SUCCESSFUL START-UP NOT IN THE VALLEY I ALWAYS THINK IS VERY COMMENDABLE. TO SCALE IT, COMMENDABLE. UKRAINE IS GOING THROUGH — SHIT’S GOING DOWN IN UKRAINE. SO, WHAT — HOW IS THAT AFFECTING YOU GUYS?>>WE’RE TRYING TO NOT COMMENT ON POLITICAL ISSUES AS WELL.>>OKAY.>>BUT RIGHT NOW, WE ARE NOT AFFECTED AS A COMPANY, AS A BUSINESS. I MEAN, I THINK THE PERCEPTION FROM OUTSIDE MIGHT BE WHAT’S GOING ON — >>WELL, IT’S A STATE OF MARTIAL LAW, SO YOU HAVE TO WONDER HOW THEY’RE GOING TO PLAY AROUND WITH ALL OF THEIR REGULATIONS AND RULES WHEN YOU’RE IN A STATE OF MARTIAL LAW. >>IT’S A STATE OF MARTIAL LAW, BUT IT’S LIKE OUR DAILY LIFE AND OUR BUSINESS LIFE DID NOT CHANGE. >>OKAY.>>AND I HOPE THIS WILL KIND OF PASS AWAY AND WE CAN STILL KIND OF BE FOCUSED ON BUILDING GREAT COMPANY AND GREAT BUSINESS. >>OKAY. DO YOU HAVE A PLAN “B,” IF IT DOES START TO AFFECT THE COMPANY?>>YEAH. >>WHAT IS IT?>>DEPENDS ON WHAT HAPPENS.>>RIGHT. >>BUT WE HAVE TO THINK — LIKE, IT’S INTERESTING. WHEN YOU’RE IN A COUNTRY THAT IS UNDER MARTIAL LAW, YOU HAVE TO THINK ABOUT PLAN “B” AND PLAN “C.”>>OKAY, YEAH. >>SO, THE MOST VALUABLE RESOURCE THAT WE GATHERED THROUGHOUT THIS TEN YEARS, IT’S NOT EVEN LIKE THOSE 100 MILLION DOWNLOADS. IT’S NOT EVEN LIKE THE REVENUE. IT’S OUR TEAM AND THOSE PEOPLE WHO KIND OF, WE NOW HAVE A TEAM OF 140 PEOPLE. >>YEAH. >>SO, THAT’S THE MOST VALUABLE RESOURCE. AND IF SOMETHING HAPPENS, I THINK NOTHING WILL HAPPEN, EVERYTHING WILL BE FINE, BUT OF COURSE WE WILL DO EVERYTHING WE CAN TO KIND OF PROTECT AND MANAGE TO PROTECT OUR PEOPLE. >>THAT’S A GOOD ANSWER. >>BUT ACTUALLY, WE DO HAVE A BERLIN OFFICE. >>OH, GOOD. SO, THEY CAN ALL EMIGRATE. SO, YOU’VE GOT THE PLAN “B” FOR YOUR EMPLOYEES, OR “C,” OR WHATEVER. BUT WHAT ABOUT FOR YOUR USERS? SO, LIKE, WHEN YOU’VE GOT A STATE OF MARTIAL LAW, PRESUMABLY, THAT’S GOING TO BE IMPACTING ALL KINDS OF THINGS. HOW DO YOU ENSURE, AND HAS THERE BEEN A SITUATION YET WHERE YOU WOULD SAY THAT YOUR USERS’ DATA OR ANYTHING LIKE THAT HAS BEEN POTENTIALLY IMPACTED? AND HOW DO YOU REASSURE PEOPLE THAT WHATEVER’S GOING ON BETWEEN UKRAINE AND RUSSIA, WHICH HAS PRETTY BAD RECORD FOR THIS SORT OF STUFF, THAT THEIR INFORMATION IS SECURE, SAFE, PRIVATE, AND NOT TOUCHED BY WHOEVER?>>WE DO BELIEVE THAT WE’RE ON BOARD WITH APPLE ABOUT THIS, THAT THE PRIVACY IS THE MOST FUNDAMENTAL AND THE MOST IMPORTANT THINGS FOR — >>SO, WHERE IS THE INFORMATION LOCATED NOW?>>SO, WE DON’T HAVE — LIKE, ONLY SPARK HAS PARTS OF BITS OF INFORMATION. ALL OF THE OTHER APPS IS JUST LIKE YOU INSTALL SCANNER PRO AND IT USES iCLOUD. THAT’S APPLE — >>SPARK IS YOUR E-MAIL. >>WE DON’T HAVE ANY DATA. WITH SPARK, WE’RE TRYING TO MINIMIZE THE AMOUNT OF DATA THAT WE HAVE TO RUN THE SERVICE. OTHERWISE, IT CAN’T RUN THE SERVICE.>>RIGHT. >>BUT WE’RE USING KIND OF ENCRYPTED GOOGLE CLOUD AND AMAZON. SO, IT’S NOTHING TO DO WITH UKRAINE. >>IN WHICH COUNTRIES ARE THOSE SERVERS?>>I THINK IT’S GERMANY AND U.S. YEAH. >>OKAY.>>SO, WE’RE ALL SAFE. NOTHING IMPACTS OUR BUSINESS AND OUR USERS. >>OKAY. THAT’S WONDERFUL. DENYS, YOU’RE BRILLIANT FOR COMING. THANK YOU SO MUCH. >>THANK YOU. >>GOOD LUCK WITH WHATEVER THE NEXT STEP IS.>>THANK YOU.>>DENYS ZHADANOV. ♪>>YEAH. SEE, THAT’S ENTHUSIASM. DID YOU SEE WHAT THAT — YEAH? PAYING ATTENTION? SEE, I LIKE — BEANIE! WHAT’S UP, DUDE? WHAT’S YOUR NAME? I CAN’T HEAR YOU. IT’S OKAY. YOU STILL HAVE ALL MY LOVE. JUST FOR YOU, MAN. ALL RIGHT, LET’S KEEP THINGS MOVING. PLEASE GIVE A WARM WELCOME TO OUR NEXT GUEST, FROM YUBICO, STEEN, AND YOUR MODERATOR.>>THANK YOU. ♪ STINA EHRENSVARD. >>ALL RIGHT, SECURITY. ANY UBICODE USERS? ANYBODY HAVE A UBI KEY? WHOA, TWO PEOPLE? ALL RIGHT, DID YOU BRING SOME FREE ONES?>>SHOULD I HAVE BROUGHT FREE ONES FOR EVERYONE? SORRY, I DIDN’T. >>NEXT TIME. THANK YOU FOR BEING HERE. >>THANK YOU.>>THESE DAYS, YUBICO IS PRETTY MUCH THE GOLD STANDARD IN HARDWARE AND TWO-FACTOR AUTHENTICATION. YOU’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’T TELL THEM WAS THAT THE HACKER WAS MY HUSBAND AND THE FATHER OF MY THREE CHILDREN.>>THAT’S — WHAT’S THE DEAL WITH YOUR HAT? BECAUSE THAT’S A BLACK HAT. >>YES. A WHITE HACKER IS SOMEONE WHO’S NICE AND THE BLACK HACKER IS THE BAD GUY. SO — >>ARE YOU THE BAD GUY?>>NO. I MEAN, THE REALITY IS I HAVE A BACKGROUND IN PRODUCT DESIGN. MY HUSBAND IS A BRILLIANT ELECTRONIC COMPUTER ENGINEER. HE COULD HACK BASICALLY ANYTHING THAT WAS NOT HARDWARE, AND IT’S NOT EVERYTHING HARDWARE THAT IS SECURE, BUT HE COULD NOT HACK SMART CARDS. SO, WE SAY LET’S FIGURE OUT A WAY TO COME UP WITH SOMETHING THAT HE COULDN’T HACK AND THAT WOULD BE ABLE TO BE SCALE AND COULD WORK EVERYWHERE, AND THAT’S HOW WE CAME UP WITH THE UB KEY. >>YOUR FIRST PRODUCT WASN’T THE UB KEY, THOUGH, RIGHT? WHAT WAS YOUR FIRST PRODUCT?>>THE FIRST PRODUCT IN THIS COUNTRY WAS A YUBI KEY. >>OH, OKAY. >>WE CAME UP WITH OTHER INVENTIONS IN A PREVIOUS LIFE, BUT THAT’S ANOTHER STORY. >>GOT IT. NOW, THE WAY YOU GET — WHAT PUT YOU ON THE MAP WAS REALLY THAT GOOGLE STARTED USING YOUR PRODUCTS. THAT’S THE FIRST TIME PEOPLE REALLY STARTED TALKING ABOUT YUBICO, IS THAT FAIR TO SAY?>>YES. >>HOW DID THAT COME ABOUT?>>WHEN I STARTED, I HAD SOME CHALLENGES, BECAUSE PEOPLE SAID, WELL, ARE YOU SURE THE HARDWARE KEY IS THE FUTURE? ISN’T BIOMETRICS OR PHONE APPS OR GEAR LOCATION, EVERYTHING IN MY HARDWARE, ISN’T THAT WHAT PEOPLE WANT? I WAS LUCKY TO HAVE A SECURITY ENGINEER I GOOGLED BUYING MY PRODUCT, AND HE CONTACTED ME AND ASKED FOR A QUOTE FOR A LARGER ORDER, AND THAT’S WHEN I WROTE MY FIRST BUSINESS PLAN. I SAID, IF I’M IN SILICON VALLEY — BECAUSE ACTUALLY, AT THE TIME I WAS IN SWEDEN. >>RIGHT. YOU’RE A SWEDISH COMPANY. >>YES. WE WERE A SWEDISH COMPANY. WE HAD NOT GOTTEN MUCH TRACTION. BUT IF I’M IN SILICON VALLEY AND I WORK WITH FIVE BIG COMPANIES THERE AND TWO IN SEATTLE, I CAN WIN THE WORLD. SO, IT WAS VERY, VERY FOCUSED BUSINESS PLAN. WORK WITH THE LEADING PLATFORMS AND BROWSERS AND ONLINE TECH COMPANIES TO FIGURE OUT, NOT ONLY HOW TO GET THEM TO USE THE PRODUCT WE HAD AT THE TIME BUT CONTINUE TO DEVELOP THE PRODUCT IN COLLABORATION WITH THEM SO WE COULD GET NATIVE SUPPORT IN THEIR PLATFORMS. AND WHEN GOOGLE STARTED BUYING MY PRODUCT, I FELT, THIS IS IT. LET’S MOVE TO SILICON VALLEY. SO, I DID. >>HOW BIG A COMPANY WERE YOU AT THAT POINT?>>WE WERE A HANDFUL OF PEOPLE AT THE TIME. >>ALL RIGHT. HOW DID YOU GET GOOGLE TO TRUST YOU TO BUY YOUR PRODUCT, WHICH IS SO INTEGRAL TO ITS GOOGLE SECURITY?>>I DON’T THINK THEY REALIZED HOW SMALL WE WERE, SO THAT WAS A GOOD START. >>HOW DID YOU FAKE THAT?>>I DIDN’T REALLY FAKE IT, BUT I NEVER SAID, HEY, WE’RE ONLY — I MEAN, WE WERE SOMEWHERE BETWEEN FIVE — WE WERE FIVE FULL-TIME EMPLOYEES AND ANOTHER FIVE CONTRACTORS AT THE TIME. I HAD TWO ADDRESSES ON MY WEBSITE. I HAD THE SWEDISH ADDRESS AND THEN I HAD AN ADDRESS FOR OUR AMERICAN. WE LITERALLY HAD JUST A LITTLE CUBICLE IN AN INCUBATOR IN SILICON VALLEY, AND I DECIDED TO PUT THAT ADDRESS ON THE TOP OF MY WEBSITE, SO I LOOKED MORE AMERICAN THAN WHAT I ACTUALLY WAS. AND IT TOOK SOME YEARS BEFORE GOOGLE REALIZED WE WERE JUST A SMALL SWEDISH START-UP AND A SILICON VALLEY COOL BIG SOMETHING. >>THEY DIDN’T THINK, OH, WE SHOULD HAVE JUST BOUGHT THEM, THREE PEOPLE, IT WOULD HAVE BEEN CHEAP?>>I DON’T KNOW. I THINK IT’S REALLY GOOD THAT WE HAVE STAYED INDEPENDENT, BECAUSE IN THAT WAY, WE’VE BEEN ABLE TO MOVE BETWEEN ALL THESE PLATFORMS AND VENDORS. I MEAN, AFTER WE WON GOOGLE, WE WON FACEBOOK AND MOZILLA AND MICROSOFT AND AMAZON. AND IF WE HAD BEEN ACQUIRED BY GOOGLE, WE WOULDN’T BE ABLE TO DO THIS JOB. BEING A SMALL, INDEPENDENT, SWEDISH COMPANY THAT HAD TO BE AGILE, HAD TO BE NOVETIVE AND WERE NOT ONE OF THE BIG GUYS WERE I THINK NOT ONLY THE SECRET TO SUCCESS TO OUR COMPANY BUT ALSO TO DRIVING THIS STANDARD. >>ABSOLUTELY. NOW, WHEN GOOGLE CAME OUT WITH ITS OWN — GOOGLE IS ONE OF YOUR BIGGEST CUSTOMERS, BUT THEY CAME OUT WITH THEIR OWN SECURITY KEY EARLIER THIS YEAR, WHICH IS NOT THAT UNSIMILAR FROM YOURS. HOW DID THAT FEEL?>>I WAS SURPRISED, BECAUSE THEY DIDN’T TELL ME IN ADVANCE, WHICH IS NOT SORT OF HOW YOU TREAT A PARTNER YOU’VE BEEN WORKING WITH FOR MANY YEARS, BUT IT WAS AN INTERESTING SIDE EFFECT, BECAUSE ACTUALLY, THEY TOLD THE WORLD THAT THIS IS THE TECHNOLOGY THAT THEY’VE NEVER, NEVER BEEN HACKED, AND THERE ISN’T ANY OTHER AUTHENTICATION METHOD THAT HAD THE SAME GOOD STATS, ZERO PHISHING ATTACKS, 92% SUPPORT REDUCTION, FOUR TIMES FASTER THAN THE GOOGLE AUTHENTICATOR APP. THESE WERE THE STORIES THEY TOLD. AND BECAUSE AT THE TIME WHEN THEY LAUNCHED THE PRODUCT, THEY DIDN’T HAVE ANYTHING IN STOCK, SO WE WERE, LIKE, I DON’T REMEMBER, BUT IT WAS LIKE TEN TIMES MORE WEB SALES THAN WE NORMALLY HAVE ON A NORMAL DAY. SO, I DON’T THINK THAT WAS THEIR INTENTION, BUT THEY GAVE ACTUALLY THE BUSINESS TO US.>>HA, INTERESTING. SO, YOU WEREN’T ANGRY.>>I WAS DISAPPOINTED THAT THEY DIDN’T OFFICIALLY GIVE US CREDIT, AND I’D HOPE THEY WOULD HAVE SAT DOWN WITH US AND NEGOTIATED THE RIGHT TERMS, INSTEAD OF JUST FINDING SOMEONE ELSE THAT HAVE — THAT GAVE THEM THE BETTER TERMS, YEAH. >>ONE INTERESTING THING ABOUT THE GOOGLE KEY IS THAT IT’S MANUFACTURED IN CHINA.>>YES.>>IS THAT A WORRY FOR YOU? WOULD YOU WORRY ABOUT THAT IF YOU WERE MANUFACTURING IN CHINA?>>WE HAVE MADE A VERY CONSCIOUS DECISION TO MANUFACTURE IN SWEDEN AND IN CALIFORNIA UNDER OUR OWN TIGHT CONTROL, AND I THINK THERE ARE GOOD REASONS FOR THAT.>>WHAT ARE THOSE REASONS?>>AS A SWEDISH COMPANY, WE DON’T HAVE A GOVERNMENT THAT REQUIRES US TO COMPROMISE THE SECURITY AND PRIVACIES OF OUR USERS. >>THAT’S TRUE FOR THE CHINESE GOVERNMENT. WHAT ABOUT THE U.S.?>>U.S. IS MORE ON THE GRAYSTONE, MAYBE. >>OKAY. WHY DO YOU TRUST THE SWEDISH GOVERNMENT SO MUCH?>>WE HAVEN’T HAD WAR FOR 200 YEARS. WE ARE TOO SMALL TO HAVE OUR OWN SORT OF ADVANCED SECRET POLICY AND SORT OF — I MEAN, WE’RE JUST — WE HAVE TO BE NICE AND HUMBLE. IT’S THE SIZE OF OUR COUNTRY. >>FAIR ENOUGH. TALKING ABOUT CHINA, THOUGH, THE OTHER STORY COMING OUT OF CHINA THIS YEAR WAS THAT, APPARENTLY, THERE WERE SPY CHIPS IN THE PRODUCTS THAT WERE SOLD IN SERVICE MOSTLY CO, SOLD TO APPL AND COMING FROM MICRO. A LOT OF PEOPLE ARE DISCUSSING THAT STORY. DON’T KNOW IF IT’S TRUE OR NOT, BUT DOES IT SEEM PLAUSIBLE TO YOU?>>THIS IS NOT MY AREA OF EXPERTISE, BUT I THINK IT’S POSSIBLE, YES.>>WHY IS IT POSSIBLE?>>BECAUSE IT IS POSSIBLE TO PUT IN BACK DOORS IN MOST HARDWARE PRODUCTS, IN CHIPS. IT’S POSSIBLE — IT’S ACTUALLY EASIER TO PUT BACK DOORS INTO SOFTWARE, BUT, SO, WHEN YOU ASK ME IS IT POSSIBLE, IT’S AS POSSIBLE TO AS NOT BE POSSIBLE. I MEAN, IT’S NOT — IT’S TECHNICALLY POSSIBLE. THAT’S WHAT I WANT TO SAY. >>ARE YOU SURE IT’S NOT HAPPENING WITH YOUR CHIPS?>>WE HAD A CHALLENGE LAST YEAR. I DON’T KNOW IF YOU’RE AWARE. IT WAS IN ONE OF OUR CHIPS FROM INFINION AND THERE WAS A SECURITY VULNERABILITY. THE GOOD THING IS IT ONLY AFFECTED A MINOR PART OF OUR CUSTOMERS. WE’VE MADE MILLIONS OF THESE KEYS, AND THERE WERE IN TOTAL 20,000 OF OUR USERS, WE FIGURED OUT, THAT COULD HAVE BEEN AFFECTED. IT WAS A SMART CARD FUNCTIONALITY IN A SPECIAL USE CASE THAT WAS AFFECTED OF THIS CHIP. AND WE REPLACED THOSE KEYS. SO, YES, THE REALITY IS SECURITY’S NEVER A STATIC, YOU KNOW — JUST BECAUSE IT’S HARDWARE, IT DOESN’T AUTOMATICALLY MEAN THAT YOU’RE SECURE, SO YOU ALWAYS HAVE TO ENSURE THAT YOU MITIGATE THOSE RISKS. >>I WASN’T AWARE OF THAT, BUT HAVE YOU PUT IN ANY CHANGES AFTER THAT HAPPENED?>>YES. WE TOOK CONTROL OVER ALL THOSE CRYPTO LIBRARIES IN THE INFINEON HARDWARE PLATFORM. WE JUST SAID WE CANNOT NOT KNOW WHAT’S IN THERE. WE CANNOT AFFORD TO NOT HAVE CONTROL OVER IT, YES. AND WE HAVE VERY GOOD FIRMWARE AND SECURITY ENGINEERS WORKING ON THIS, CONSTANTLY REVIEWING IT AND DOING AUDITS AND TESTING IT. WE BRING IN RESEARCHERS FROM UNIVERSITIES OUTSIDE TO HELP AND SORT OF SCRUTINIZE OUR CODE TO ENSURE THAT WE DON’T, YOU KNOW, WE DON’T MISS ANYTHING. >>RIGHT, BECAUSE YOU’RE NOT A THREE-PEOPLE START-UP ANYMORE.>>NO. >>HOW MANY PEOPLE ARE YOU?>>160 PEOPLE AT THE TIME. >>THAT’S A LOT BIGGER THAN IT USED TO BE TEN YEARS AGO. >>YES.>>BUT YOU’VE BEEN AT THIS FOR TEN YEARS, AND YET, EVERY DAY I’M STILL PUTTING IN REALLY LONG, COMPLICATED PASSWORDS THAT I HAVE TO CHANGE EVERY THREE MONTHS FOR REASONS ONLY THE PEOPLE AT OATH I.T. KNOW. WHY?>>BECAUSE IT TAKES TIME TO DEVELOP A NEW GLOBAL STANDARD. AND I THINK THE REALITY IS THAT IT REQUIRES A NEW STANDARD TO MAKE A BIG CHANGE. SO, WHAT HAPPENED IS THAT WHEN WE APPROACHED — WE GOT GOOGLE AS A CUSTOMER TO BUY OUR FIRST ONE-TIME PASSWORD DEVICE. TOGETHER WE DEVELOPED THE U2F STANDARD, WHICH IS A USERNAME, PASSWORD, AND A KEY. WE SHOWED THE WORLD THAT YOU COULD NOT BE HACKED, THAT THIS IS FASTER AND EASIER THAN ANY AUTHENTICATION METHODS, BUT YOU STILL HAVE A USERNAME AND PASSWORD. THEN MICROSOFT CAME ON BOARD, AND THEY SAID, WE WANT TO GET — WE LIKE THAT IT’S UNPHISHABLE, OR YOU KNOW, PRACTICALLY UNPHISHABLE AND EASY TO USE, BUT WE DON’T WANT TO STORE PASSWORDS. SO THE LAST COUPLE YEARS, WE WORKED CLOSELY WITH MICROSOFT AND GOOGLE AND THE FIDO ALLIANCE COMMUNITY TO FIGURE OUT HOW WE CAN REPLACE THE PASSWORD. AND LAST WEEK, MICROSOFT LAUNCHED SUPPORT IN MICROSOFT ACCOUNTS OF A SUPERCOOL, SUPERSLICK USER EXPERIENCE. IT’S BASICALLY JUST A SIMPLE P.I.N., A FOUR-DIGIT P.I.N. IT’S THE SAME USER EXPERIENCE AS WITH AN ATM CARD, AND THEN YOU’VE GOT THE KEY. AND THAT IS THE KEY TO THE PASSWORDLESS FUTURE, BECAUSE NOW THIS STANDARD IS HERE. ALL THE LEADING PLATFORMS AND BROWSERS ARE ENGAGED, AND THEY’RE OPEN-SOURCE SERVERS THAT WE PROVIDE WHERE ANY COMPANY CAN MAKE SUPPORT FOR IT, ONLY TAKE A FEW DAYS. AND THEN THERE ARE ALREADY MULTIPLE HARDWARE DEVICES, INCLUDING OURSELVES, THAT ARE OUT THERE OFFERING THE AUTHENTICATORS. IN THE NEAR FUTURE, THESE THINGS WILL BE INTEGRATED DIRECTLY INTO COMPUTERS AND PHONES.>>RIGHT.>>AND GOOGLE HAVE ALREADY PUT IT INDIRECTLY INTO CHROMEBOOKS. SO, THAT IS THE FUTURE OF A PASSW PASSWORDLESS, NOT ONLY BECAUSE YOU DON’T ONLY WANT TO SAY, HEY, IF WE’RE GOING TO REPLACE USERNAME AND PASSWORD, IT HAS TO BE WITH SOMETHING MORE SECURE. WE CAN’T TAKE IT AWAY, THEN ALL OF US ARE HACKED. >>IF THE SECURITY IS BUILT INTO ALL OF OUR LAPTOPS, WHERE DOES YOUR COMPANY GO?>>I STILL THINK THERE ARE SECURITY AND PRIVACY BENEFITS OF NOT ALWAYS TYING YOUR IDENTITY INTO YOUR COMPUTER AND PHONE. I SEE USE CASES WHERE IT’S GOOD ENOUGH, THEN THERE ARE OTHER USE CASES WHERE YOU WANT THIS EXTERNAL DEVICE. AND THIS IS ABOUT MATH. IF YOU PUT YOUR SECURITY INTO A MULTIPURPOSE COMPUTER OR A MULTIPURPOSE PHONE OR A MULTIPURPOSE CHIP, LIKE AN INTERET CHIP OR A TPM, THOSE CHIPS ARE DESIGNED TO DO A LOT OF OTHER THINGS. AND THE BIGGER AND THE MORE THINGS SOMETHING DO, THE BIGGER ATTACK THAT — LET’S SIMPLIFY THIS. LET’S REALIZE WE CANNOT TRUST OUR COMPUTERS. WE CAN’T TRUST OUR SOFTWARE. WE CAN’T TRUST OUR WI-FI. WE CAN’T TRUST — YOU KNOW. AND DON’T TRY TO FIX THAT. BUT INSTEAD, MOVE OUT THE LOGIN CREDENTIALS INTO A KEY. DON’T HAVE A CONNECTION TO THE INTERNET. ENCRYPT IT IN THE BEST POSSIBLE WAY AND THEN PUT IT IN THE POCKET. THEN WE’VE DONE THE BEST POSSIBLE — WHAT WE CAN. >>RIGHT. WELL, I WOULD EXPECT YOU TO SAY THAT SINCE YOU’RE SELLING THE KEYS, BUT ARE YOU SAYING WE SHOULDN’T TRUST THESE CHIPS INSIDE A LAPTOP, INSIDE A PHONE THEN?>>I MEAN, WE LEARNED RECENTLY WITH THE INTEL MELTDOWN THAT THESE MULTIPURPOSE CHIPS, THEY HAVE MORE SOFTWARE, AND THE MORE SOFTWARE, THE MORE ADVANCED, BIGGER THE SYSTEM IS, THE BIGGER IS THE RISK FOR SOME KIND OF ATTACK. I’M NOT SAYING WE SHOULD TRUST — THE SMALLER THE ATTACK VICTOR, THE FEWER THINGS THE SECURITY CREDENTIALS — YOU KNOW. THERE IS A CHIP OR A SOLUTION THAT ONLY FOCUSES ON THIS. IT’S EASIER TO SECURE.>>NOW, IF WE STILL HAVE THOSE KEYS, THOUGH, THERE’S ALWAYS BEEN A TRADE-OFF BETWEEN CONVENIENCE AND SECURITY. USING A KEY, IT’S NOT AS CONVENIENT AS JUST LOOKING AT MY SCREEN AND HAVING THE CAMERA OPEN UP THE PHONE FOR ME. WILL WE EVER GET RID OF THAT TRADE-OFF?>>WHAT WE WILL HAVE IN THE FUTURE IS THE COMBINATION. SO, TODAY I LOGIN ON MY PHONE WITH MY FINGERPRINT. THAT’S HOW I OPEN UP. THAT’S MY FIRST FACTOR. YOU KNOW, WE TALK ABOUT SECOND FACTOR. YOU KNOW, FACTOR COULD BE A P.I.N., A PASSWORD, A BIOMETRICS, YOU KNOW, SOMETHING THAT YOU ARE OR YOU KNOW. IN ADDITION TO THAT, I HAVE WHEN I HAVE MY PHONE, FOR THE APPLICATION I WANT EXTRA SECURITY TO, I HAVE ADDED A YUBIKEY. SO FOR EXAMPLE, WHEN I LOGIN TO MY GOOGLE ACCOUNT, I LITERALLY JUST PRESS THE ICON FOR MY GMAIL. I DON’T HAVE TO BRING UP MY KEY MORE THAN ONCE. >>RIGHT. >>SO, A LOT OF PEOPLE BELIEVE, OH, I DON’T WANT TO CARRY MY KEY BECAUSE EVERY TIME I LOGIN. NO. MOST OF THESE APPLICATIONS, YOU JUST DO IT ONCE. YOU BLESS YOUR COMPUTER OR YOUR PHONE WITH A KEY AND THEN YOU CAN PUT YOUR — THE WAY GOOGLE HAS SET IT UP IS ON YOUR COMPUTER, YOU HAVE TO DO IT EVERY 30 DAYS. YOUR PHONE, YOU ONLY DO IT ONCE.>>RIGHT. >>AND THAT’S A POLICY. AND IT’S STILL MUCH BETTER SECURITY THAN SMS AND OTP APPS. AND SO, IT’S ALWAYS — YOU DEFINITELY, THERE’S ALWAYS A TRADE-OFF BETWEEN GOOD SECURITY AND GOOD USABILITY, BUT I THINK WE’VE COME TO SOMETHING, THANKS TO WORKING WITH THESE CLOUD COMPANIES, BECAUSE THEY’VE HELPED. WHEN YOU’VE BUILT THINGS INTO THE BROWSERS AND INTO THE PLATFORMS AND INTO THE VISORS, YOU DON’T HAVE TO THINK ABOUT IT. >>RIGHT. >>SO, WE FINALLY HAVE SOMETHING THAT’S SUPER SECURE AND SUPER EASY. >>THERE’S ONE PLATFORM WHERE IT’S NOT SUPER EASY AND SUPER SECURE YET, AT LEAST IF I WANT TO USE A YUBIKEY, AND THAT’S THE iPHONE, iPADS. >>YES. WE HAVE AN INTERESTING CONVERSATION WITH APPLE. WE ARE TRYING TO CONVINCE THEM TO OPEN UP NFC, BECAUSE THAT IS THE — >>AND YOUR NEW CHIPS USE — >>YEAH, THAT’S ALREADY — THE NEW FIELD COMMUNICATION, THE CONTACTLESS COMMUNICATION WHERE IT’S ALREADY USED FOR APPLE PAY. IT’S NOT A TECHNICAL CONVERSATION. IT’S A BUSINESS DECISION THEY’VE DONE THAT THEY HAVEN’T OPENED UP THAT. WE HAVE OUR YUBIKEY THAT HAS NFC. YOU CAN USE IT FOR SOME APPLE APPLICATIONS, BUT NOT FOR THE NEW STANDARD. SO, WE ARE WORKING ON OTHER SOLUTIONS THAT WE’RE GOING TO LAUNCH NEXT YEAR. AND IT’S BEEN A LONG JOURNEY. IT’S BEEN ONE OF OUR BIGGEST SORT OF BOTTLENECKS FOR GETTING THAT OPTION, YES. >>WILL THAT BE A SOLUTION I CAN PLUCK INTO MY LIGHTNING PORT?>>YES. >>AND MY USBC PORT?>>YES. >>ALL RIGHT. THAT WILL BE GOOD. IT’S ABOUT TIME. EVERYBODY ALWAYS ASKS ME, WHERE — >>WE ALREADY HAVE A USBC SOLUTION, BY THE WAY. >>OH, THAT’S TRUE.>>YES, WE ALREADY HAVE. >>THAT’S TRUE. LOOKING A LITTLE BIT FURTHER AHEAD, THEN, WHAT’S NEXT FOR YOU? WHAT’S NEXT FOR YUBICO?>>I THINK RIGHT NOW I AM HERE — AND I WAS VERY EXCITED WHEN YOU INVITED ME TO COME HERE, BECAUSE I’M AN AMBASSADOR FOR MAKING THIS NOW HAPPEN. I MEAN, WE PUT OUT A DEVELOPER’S COMMUNITY. WE OFFER FREE OPEN-SOURCE SERVERS. IT TAKES A FEW DAYS TO INTEGRATE. WE INVITE DEVELOPERS, ONLINE SERVICES, USERS TO SORT OF JOIN THIS MOVEMENT TO GET RID OF PASSWORDS, TO GET RID OF HACKERS. INTERNET IS SUCH A BEAUTIFUL INVENTION, WE CANNOT LED THE FRAUDSTERS WIN, YOU KNOW. THERE’S A LOT OF PEOPLE WHO ARE VERY CYNICAL ABOUT EVERYTHING BEING HACKED. THE STATS WE’RE SEEING WHEN YOU ADOPT THIS TECHNOLOGY, YOU ARE NOT HACKED, AND IT IS EASIER AND IT IS FASTER. SO, I THINK THAT THE MAIN MISSION WE HAVE NOW IS JUST TO CONTINUE TO DRIVE THAT. IN ADDITION TO THAT, WE ARE GETTING INTEREST AND REQUESTS FROM PAYMENT COMPANIES THAT SAY, HEY, COULD THIS BE USED FOR PAYMENTS AND CREDIT CARDS AND IoT? AND COULD WE PUT THIS IN CARS? SO, WE’RE IN — >>CRYPTO WALLETS?>>YEAH, CRYPTO WALLETS. YES. EXACTLY. THE SAME SORT OF STANDARDS PARTS. SO, I BELIEVE WHAT WE’RE GOING TO DO NOW IS CONTINUE TO EVOLVE THIS TECHNOLOGY TOGETHER WITH LEADING COMPANIES WHO APPROACH US AND SAY WE WANT TO DO THIS, JUST LIKE WE DID WITH GOOGLE AND WITH MICROSOFT. THERE WILL COME A FEW OTHERS THAT HELP US DEVELOP THINGS TOGETHER WITH THEM. WE HAVE SOME OF THE BEST ENGINEERS ON THE PLANET.>>AWESOME. THAT’S ALL THE TIME WE HAVE. THANK YOU VERY MUCH! I HOPE WE’LL ALL STAY SAFE AND NEXT TIME BRING SOME FREE YUBIKEYS FOR EVERYBODY. >>I WILL. SORRY.>>THANK YOU. PLZ [ APPLAUSE ]>>THANK YOU.>>THERE WE GO. WE’RE GOING TO BREAK! PLEASE BE BACK AT 3:55 FOR MORE SESSIONS AND ONE MORE BATTLEFIELD FLIGHT. SEE YOU THEN.>>>DEMO DAY. LAST TIME WE WERE HERE, IT WAS WINTER. THIS TIME IT’S SUMMER. AND WE’RE JUST GOING TO CHECK OUT ALL THE SWEET COMPANIES.>>>LADIES AND GENTLEMEN, PLEASE TAKE YOUR SEATS. THE PROGRAM IS ABOUT TO BEGIN.>>>LADIES AND GENTLEMEN, PLEASE WELCOME BACK TO THE STAGE TECHCRUNCH EDITOR AND DISRUPT MC JORDAN CROOK.>>THANK YOU AGAIN, TECHCRUNCH. APPRECIATE THE APPLAUSE TO THE REST OF YOU. WE’LL TALK LATER. I’M A LUCKY GIRL, BECAUSE AT TECHCRUNCH THERE ARE A FEW PEOPLE, MORE THAN A FEW, THAT ARE REALLY, REALLY SMART ABOUT CRYPTO, SO I HAVE BEEN ABLE TO AVOID FIGURING THAT WHOLE THING OUT, WHICH HAS BEEN PLEASANT FOR ME. BUT THE FOLKS WHO ARE ABOUT TO COME ON STAGE KNOW QUITE A BIT ABOUT IT, SO WITH THAT, I’D LIKE YOU ALL TO GIVE A WARM WELCOME, IT’S NOT EVEN FOR ME, IT’S FOR THEM, AN ENTHUSIASTIC WARM WELCOME, JUST TRY, FOR JAMIE BURK AND RENEE GUPTA AND MIKE — YOUR MODERATOR MIKE BUTCHER.>>THANKS VERY MUCH, EVERYONE. I HOPE YOU’RE GOING A GOOD TIME AT DUS DIS RUPT BERLIN. LET’S GET INTO IT. RENEE AND JAMIE, IT’S 2018. THE CRASH IS RUMBLING AROUND OUR EARS AT THIS POINT IN TERMS OF CRYPTOCURRENCIES. EVERYTHING HAS CRASHED IN THE LAST THREE MONTHS. WHAT’S GOING ON? JAMIE. >>YES. OBVIOUSLY WE’RE IN A CRYPTO WINTER. THAT’S PRETTY OBVIOUS TO EVERYBODY AND CERTAINLY IT WAS FAIRLY OBVIOUS IT WAS GOING TO HAPPEN AT SOME POINT. I THINK MOST OF US THAT HAVE BEEN INVOLVED IN THE SPACE FOR QUITE A WHILE AND ARE ACTIVELY INVESTING OR BUILDING WHAT WE BELIEVE TO BE REALLY IMPORTANT STUFF IN A WAY WE’RE KIND OF WILLING IT TO HAPPEN SOONER RATHER THAN LATER. >>WHY IS THAT?>>IF YOU LOOK AT THE SCALE OF DOT COM BUBBLE, WCOMPARED TO THS IT IS RELATIVELY SMALL. A LOT MORE QUICKER, COMPRESSED. IT WAS A FRACTION OF WHAT WAS LOST IN DOT COM. I THINK THAT’S IMPORTANT. >>USEFUL CONTEXT, ACTUALLY, ISN’T IT?>>YEAH. AND IT’S ALSO IMPORTANT BECAUSE THE DEEPER THE CRASH, THE MORE SUSTAINED AND LACK OF CAPITAL COMING INTO THE SPACE FOR GENUINE PROJECTS AND EQUALLY THE LONGER THE KIND OF END USER WOULD BE PUT OFF FROM USING THIS STUFF BECAUSE OF ITS CONNOTATIONS. >>I WANT TO GET INTO WHAT IT ACTUALLY IS. DOESN’T THAT MEAN YOU’VE MISSED THE ICO WINDOW?>>WE WERE NEVER INTERESTED IN THE ICO IN THAT PERIOD. WE’VE ALWAYS BEEN SOMETHING THAT WOULD BE FRAMED AS THE SECURITY TOKEN AND THE SECURITY EXCHANGE IS STILL BEING BUILT OUT. BECAUSE OF THE NATURE WE’RE IN THE LEGALS HAVE TO BE EXTREMELY PRECISE. THE LEGALS WE DID WE WERE NOT COMFORTABLE WITH PARTICULARLY BECAUSE OF RISK OF S.E.C. ACTION, SO WE’VE BEEN KIND OF HOLDING FIRE FOR THE LEGAL SITUATION TO STRAIGHTEN ITSELF OUT BEFORE WE MOVED AND I THINK YOU’LL SEE NEXT YEAR THE INFRASTRUCTURE AND THE CRYPTO SALES WILL BEGIN AND IT WILL BE A VERY DIFFERENT WORLD. >>WE’RE GOING TO GET INTO MATERIUM AND WHERE IT IS, BUT YOU BOTH WERE ENORMOUS COMMENTATORS OF THIS SPACE. LET’S CRACK THE CURRENCY ISSUE AND WHERE THE FUNDING ASPECT OF EVERYTHING IS COMING FROM AT THE MOMENT. YOU KNOW, YOU MENTIONED, JAMIE, THAT ACTUALLY THIS COULD BE A MOMENT WHEN THE REAL INNOVATION STARTS, IN FACT. IF YOU LOOK AT BETWEEN 2000 AND 2003, 2004, THAT’S WHEN WE GOT GOOGLE. EVENTUALLY WE GOT FACEBOOK, ET CETERA, ET CETERA. THAT’S WHEN AMAZON REALLY STARTED MOTORING AND WE KNOW ALL OF THIS. WAS THE CRYPTO WINDOW INEVITABLE? IS THERE MANIPULATION GOING ON BEHIND THE SCENES THAT WE’RE NOT AWARE OF? WHAT’S YOUR VIEW? JAMIE. >>THE ASSET CLASS HAS BEEN IN KIND OF A REGULATORY GRAY AREA. LARGELY MOST REGULATOR ORS HAVE BEEN PASSABLY OBSERVING AND INCREASINGLY THERE’S NOW ACTION TAKING PLACE PRIMARILY BY THE S.E.C. ON LOW HANGING FRUIT, OBVIOUS SECURITY VIOLATIONS. BUT I THINK IT’S IMPORTANT TO KIND OF STEP BACK AND TAKE A MACRO VIEW OF WHAT ALL THIS MEANS. SO THE REASON WHY WE WERE ABLE TO HAVE SOMETHING LIKE AN ICO, AND AN ICO IS A VERY SPECIFIC INNOVATION USING CRYPTO ASSETS SPECIFIC TO CROWD FUNDING. THAT DOES NOT MEAN THAT EVERY TOKEN MUST HAVE AN ICO OR EVERY TOKEN IS PURELY THERE FOR FUNDRAISING. THE TOKEN, A UNIQUE DIGITAL ASSET THAT CAN BE USED TO DISINCENTIVIZE A NETWORK TO CONTRIBUTE VALUE, COMPUTE POWER STORAGE, TO SHARE VALUE IS INCREDIBLY POWERFUL AND IT’S ACTUALLY HARD CODE RULES AND THEORY INTO THE SYSTEMS. SO I THINK MOST TOKENS THAT CAME INTO THE MARKET LAST YEAR AND THE YEAR BEFORE WERE REALLY INSTRUMENTS TO RAISE CAPITAL. THERE WASN’T MUCH THOUGHT INTO HOW THESE THINGS CAN REALLY BE USED TO UNDERPIN THE SYSTEMS THAT THEY’RE SUPPOSED TO BE NATIVE TO. SO I THINK THERE NEEDS TO BE A CLEAR LINE BETWEEN LOOKING AT WHAT WAS THE ICO INNOVATION COMPARED TO TOKENIZATION MORE BROADLY. >>YOU’VE GOT SOME THOUGHTS ABOUT HOW WE, YOU KNOW, THE PRE-ICO, PEOPLE WERE ACTUALLY TRYING TO DO THINGS WITH BITCOIN PRIOR TO ETHERIUM. >>THE FIRST WAVE, SOUTHERN INNOVATION IN THE SPACE WAS WHAT THEY ALL THE OUT COINS. THEY MAKE SOME CHANGES. THEY’D STAND IT BACK UP AS A NEW NETWORK AND THERE WAS A WHOLE BUNCH OF THEORIES. SOME OF THOSE ARE SIGNIFICANT. LITECOIN IS ONE OF THOSE RUNNING. THAT BEGAN TO SPEND DOWN ONCE IT WAS EASIER TO DO THAT STUFF ON ETHERIUM. YOU COULD DO YOUR OWN CENTRALIZED NETWORK AND RUN IT ON SMART CONTRACT. THE INNOVATION KIND OF MOVED THERE AND SOME OF THOSE WERE VERY SUCCESSFUL, SOME AREN’T. THEY ALL SHOULD HAVE BEEN PROPERLY REGULATED SECURITIES FROM THE BEGINNING BECAUSE THEY WERE RAISING MONEY DIRECTLY TO THE GENERAL PUBLIC. THE GOVERNMENTS DIDN’T GO AWAY. THERE WAS ALWAYS GOING TO BE A SETTLEMENT WITH REGULATORS AND WHAT WILL COME OUT OF THAT IS A CORRECTLY REGULATED TOKEN ECONOMY NEXT YEAR. THE S.E.C. WILL DEFINE THESE THINGS ARE NOT OKAY, THESE THINGS ARE. THE REGULATED EXCHANGES WILL COME UP. IT’S ALL GOING TO STRAIGHTEN ITSELF OUT. BY THEN IT WILL BE MUCH CLOSER TO REGULAR FINANCE THAN THE KIND OF ORIGINAL BLOCK CHAIN WILD WEST. >>ISN’T THIS GOING TO MEAN, THOUGH, THAT IN THAT WINDOW MANY PROJECTS AND MUCH OF THE ACTIVITY BEGAN TO MOVE TO NONU.S. COUNTRIES, ASIA, PARTS OF EUROPE, ET CETERA?>>SURE. BUT THE KIND OF — THE JURISDICTIONS IN WHICH OFFSHORE FINANCE HAPPENS HAVE ALWAYS BEEN A SMALL PART OF THE GLOBAL FINANCIAL PICTURE BECAUSE THEY’RE RELATIVELY SMALL COUNTRIES. IT’S ALWAYS GOING TO COME DOWN TO SETTLEMENT WITH THE S.E.C. RATHER THAN RUN AROUND THEM. IT’S ALWAYS COMPROMISE. >>THEY WERE TRYING TO ACHIEVE TOO MUCH WITHOUT ENOUGH DESIGN. THEY WERE TRYING TO HAVE AN ASSET THAT COULD BE BOTH A MEANS TO RAISE CAPITAL, TO EXPECT, AND TO INVCENTIVIZE PEOPLE TO JOIN IN. THE REALITY IS THAT LIKE MOST STARTUPS IN THE EARLY STAGE, 90% WILL FAIL IN THEIR FIRST THREE YEARS AND I THINK WE’RE SEEING THAT MIRRORED ACROSS MOST TOKENS. THEY’VE RAISED CAPITAL ON THE PROMISE OF DELIVERING SOME KIND OF UTILITY AND LIKE MOST STARTUPS, THEY FAIL. THE PROBLEM WITH THAT IS THAT THE REASON WHY YOU HAVE INVESTOR AC ACREDITTATION AND WHO SHOULD BE ABLE TO PARTICIPATE AND ASSUME WHAT LEVELS OF RISK AT WHAT STAGE, BECAUSE EQUITY HAS A CERTAIN AMOUNT OF PROTECTIONS AND RULES AROUND IT. YOU CAN ONLY SELL THAT TO CERTAIN PEOPLE. WITH A TOKEN GENERALLY THEY WERE SOLD ALMOST INDISCRIMINATELY. WHAT HAPPENED WAS YOU HAD A HUGE PART OF THE POPULATION THAT BORE LOTS OF RISK IN THINGS THAT WERE MORE LIKELY TO FAIL THAN TO SUCCEED. YOU CAN DEBATE WHETHER THAT’S RIGHT OR WRONG, BUT I THINK WHAT WE’RE GOING TO START TO SEE NOW IS YOU’RE BUILDING OUT A NETWORK, SO PRE-UTILITY, BEFORE YOU CAN USE THAT TOKEN IN THE SYSTEM, YOU’RE PROBABLY GOING TO RAISE MONEY THROUGH EQUITY AND THAT WILL BE DONE COMPLYING WITH LOCAL LAW. >>WE’RE BACK TO SQUARE ONE. EQUITY IS BACK. PROJECTS WILL BE RAISED ON EQUITY, NOT ON TOKENS. DOES THAT MEAN THE END OF THE GREAT UPLANDS, THE HALLOWED UPLANDS SHALL WE SAY OF NOT NEEDING VENTURE CAPITAL ANYMORE?>>IT DEPENDS WHAT PROJECTS YOU’RE TALKING ABOUT. IF YOU’RE TALKING ABOUT PROTOCOL AND INFRASTRUCTURE, THE GREAT INNOVATION THAT WE’VE GOT THAT I THINK IS STILL GOING TO STAY WITH US IS THE IDEA THAT YOU CAN — THAT SHOULD BE OPEN SOURCED AND IT COULD BE TOKENIZED AND IT GIVES VERY POWERFUL NETWORK EFFECTS. THESE THINGS ABSOLUTELY SHOULD HAVE TOKENS. THE POINT IS WHO SHOULD PARTICIPATE IN FINANCING THAT NETWORK AND WHO SHOULD PARTICIPATE IN ECONOMIC VALUE CREATION AND AT WHAT STAGE. I THINK WE’RE GOING TO START TO SEE HYBRIDS WHERE PROJECTS WILL INITIALLY BE — RAISE MONEY THROUGH EQUITY. THE RISKIER PART UNTIL THEY GET TO THE POINT WHERE THEY NEED WIDER OPTION AND THEY NEED THIS TOKEN TO INCENTIVIZE THE NETWORK. IT WILL LOOK A LITTLE BIT LIKE PREVIOUS VENTURE. WE JUST DID A REPORT WHERE VENTURE HAS PRETTY MUCH FILLED THIS VOID NOW OF WHAT WAS PREVIOUSLY ICO POLLS AND RETAIL MONEY. >>MATERIUM, DOES THAT MEAN YOU’LL BE GOING VAFTER TRADITIONAL VENTURE MONEY?>>VERY MUCH SO. TRADITIONAL VENTURE MONEY IS IMPORTANT BECAUSE THEY PUT A LOT OF SKILL ON THE TABLE AS WELL AND THE KIND OF SCALING CHALLENGES WE EXPECT TO SEE OVER THE NEXT YEAR OR SO ARE MUCH MORE LIKE THE THINGS YOU SEE ON TRADITION VENTURE BECAUSE SOME PARTS OF WHAT WE DO IS JURISDICTION BY JURISDICTION. AND THE EXPERTISE THAT TRADITIONAL VENTURE COMPANIES HAVE, THEY’RE BASICALLY SELLING IN EXCHANGE FOR PREFERENTIAL RATES. VENTURE CAPITAL HAS ALWAYS BEEN CONSULTANTS MASKED AS INVESTMENT AND THE MOST SUCCESSFUL FIRMS ARE ALMOST LIKE CONSULTANTS. THEY’VE GOT MORE IN COMMON WITH McKENZIE THAN WITH THE BANK. >>LET’S GET INTO MORE ABOUT MATERIUM. WE WROTE A STORE ON HOW YOU TOKENIZED THE VERY RARE VIOLIN FROM THE 17th CENTURY, I BELIEVE. >>YEP. >>HOW DID YOU DO THAT? WHY DID DO YOU THAT? AND WHAT Y DOES THAT ILLUSTRATE WHAT IT IS?>>THE VIOLIN PROJECT IS A MULTI-STEP PROJECT. WE TAKE THE VIOLIN AND MOVE INTO A NEW GOVERNANCE FRAMEWORK SO THE CLASSICAL COMMUNITY AS A WHOLE — >>ARE YOU SCANNING IT? 3D MAPPING IT. >>ALL THAT IS DONE. THEY ARE TYPICALLY IDENTIFIED BY SCANS. YOU BILL A GOVERNANCE FRAME WORKS. ONCE YOU’VE GOT THAT AND THE RIGHT SET OF GOVERNORS ASSOCIATED, THAT’S ALL TRAINED INTO A SMART CONTRACT. THEN YOU PSPLIT THE EQUITY IN TE INSTRUMENT AWAY FROM THE GOVERNANCE AND THE EQUITY IS SOLD TO THE CLASSICAL MUSIC PUBLIC. AND THE TOKEN WHICH IS MANAGED SO IT CAN BE SOLD DIRECTLY TO THE PUBLIC. >>SO I CAN OWN A PART OF A VIOLIN. >>AND PARTICIPATE IN THE GOVERNANCE OF IT. >>MEANING?>>MEANING WHERE IS IT PLAYED, HOW IS IT MAINTAINED? THESE THINGS ARE — THESE ARE CORE HUMAN HERITAGE, RIGHT? THE CLASSICAL MUSIC WORLD RAN ON STRATAVARIUS VIOLINS WERE MADE AND SHOULDERS ABOVE VIOLINS THAT WERE MADE. THE IDEA IS TO TAKE THESE THINGS OUT OF PRIVATE COLLECTORS HANDS AND GIVE THEM DIRECTLY TO THE CLASSICAL MUSIC COMMUNITY. >>IT COULD BE A PUBLIC GOOD. >>YEAH. THIS IS EXACTLY THE NOTION. ONCE YOU’VE GOT THAT TEMPLATE ESTABLISHED, YOU COULD DO IT NOT JUST FOR FINE ART, BUT SYSTEM ASSETS. IF YOU WANT TO PROTECT, YOU CAN JUST GO THERE AND HAVE EVERYBODY THAT’S INTERESTED JUST BUY UP HUNDREDS OF THOUSANDS OF ACRES OF FORESTS AND PRESERVE.>>THERE WAS AN ENVIRONMENTAL MOVEMENT TO NOT SO MUCH TOKENIZE BUT SOLD OFF ONE CENTIMETER BY ONE CENTIMETER PIECES OF LAND TO THE FIELD NEXT DOOR TO HEATHROW AIRPORT TO STOP THE THIRD RUNWAY BEING BUILT. SO ARE YOU SAYING THAT WE COULD TOKENIZE THE BRAZILIAN RAIN FOREST AND STOP IT FROM BEING CUT DOWN?>>YES. THERE ARE ALREADY COMPANIES DOING THAT FROM THE PRIVATE EQUITY SIDE. IT’S JUST A QUESTION OF HOW DO YOU MAKE IT GOING FROM NOT BEING A PRIVATE EQUITY GAME FROM THE VERY RICH TO PEOPLE SHOWING THEIR VALUES BY BUYING AND PROTECTING THE ASSETS IN NATURE THEY THINK IS CRITICAL. >>THE PROBLEM IS THERE ARE MANY PROJECTS OUT THERE WHO SAY WE CAN TOKENIZE THIS, THERE’S PROPERTY WHICH IS TOKENIZING, REAL ESTATE, THERE’S SEVERAL STARTUPS WHICH CAN TOKENIZE COLLECTIBLE ART. YOU KNOW. IS THIS REALLY SORT OF A VIABLE PROPOSITION, ESPECIALLY FOR INVESTORS?>>YES. I THINK ONCE YOU SAW SOME OF THE LEGAL TECHNICAL ISSUES THAT MATERIUM ARE TRYING TO DO, IN THEORY YOU CAN TOKENIZE THE OWNERSHIP OF PRETTY MUCH ANYTHING. THAT’S GOING TO BRING HUGE AMOUNTS OF LIQUIDITY TO ASSETS BECAUSE THE BAR OF OWNERSHIP IS TOO HIGH. >>IT’S ALSO USEFUL FOR INVESTORS. THE ABILITY TO BUY TENS OF THOUSANDS OF ASSETS IS SOMETHING YOU CAN DO IN A LARGE SCALE BUT IT GIVES STABILITY OF INVESTMENTS TO GET THE KIND OF STABILITY RETURN THAT YOU GET WITH PENSION FUNDS. THERE IS A PRETTY GOOD CHANCE THIS WILL TURNOUT TO BE GOOD FOR RETAIL INVESTORS.>>BUT BECAUSE OF THE WHOLE ICO I THINK, TOKENIZATION THING AND THE IDEA OF THAT HAS BEEN POO-POOED AND NOW THERE IS A SHIFT TOWARD SECURITY TOKENS. WITHIN THAT YOU HAVE THIS OF LET’S TOKENIZE EQUITY IN STARTUPS. WHILE THAT WOULD BE BIG, IT’S KIND OF GIVING UP ON THE HARD PART OF FIGURING OUT HOW DO WE ACTUALLY TOKENIZE THESE GLOBAL PUBLIC UTILITIES THAT WILL BE THE PROTOCOLS THAT ARE GOING TO BE FOUNDATIONAL TO THE WEB. HOPEFULLY MATERIUM MIGHT BE ONE OF THOSE, OCEAN LOOKING AT DATA PLACES. THERE ARE A NUMBER OF CRITICAL FOUNDATIONAL LAYERS IN WHAT WE BELIEVE IS A WEB THREE STACK. THEY SHOULD ALMOST DEFINITELY BE OPEN SOURCE AND TOKENIZED BECAUSE THEY ARE GLOBAL PUBLIC UTILITIES. THE PROBLEM IS IF THE TOKENS THAT EMPOWER THOSE THINGS, THE SECURITIES, THEY CAN’T BE GLOBAL, THEY’RE INHERENTLY LOCAL. THIS IS WHY WE HAVE TO SOLVE WHY THERE SHOULD BE A CLASSIFICATION OF A UTILITY TOKEN. WHEN IS IT APPROPRIATE AND HOW IS IT APPROPRIATE THOSE THINGS ARE FINANCED, WHO SHOULD BE ABLE TO PARTICIPATE IN THOSE SYSTEMS. THIS IS A REALLY BIG IMPORTANT PROJECT WE CAN’T GIVE UP ON BECAUSE THE THREAT THAT WE’VE GOT TO SOMEHOW COUNTER IS CURRENTLY THE WEB IS NINCREDIBL CENTRALIZED. PLATFORM MONOPOLIES ARE NOW AI MONOPOLIES. WE’RE GIVING POWER TO A HANDFUL OF ORGANIZATIONS WITH OUR HOMES O HEALTH. WE NEED AN ALTERNATIVE AND I THINK THAT WILL BE TOKENIZED. >>YOU’VE GOT VIEWS ABOUT HOW BLOCK CHAIN AND AI WILL MEET. HOW WILL THAT WORK?>>THE WAY THAT MATERIUM LOOKS AT THE WORLD, RIGHT NOW YOU CAN’T GET OUT OF THE BLOCK CHAIN FROM INSIDE THE BLOCK CHAIN. WE TALK ABOUT THINGS LIKE ONE DAY YOU’LL BE ABLE TO RENT APARTMENTS ON THE BLOCK CHAIN AND HAVE SMART CONTRACTS, ALL THOSE THINGS. RIGHT NOW ALL OF THAT IS NOTIONAL. NONE OF IT WORKS. WE CAN’T GET THE ASSETS IN THE REAL WORLD FROM INSIDE OF THE SMART CONTRACT. ONCE YOU CAN DO THAT, THAT’S THE BRIDGE THAT WE’RE CROSSING, THEN YOU WIND UP WITH A LARGE POOL OF ASSETS IN WHAT WE CALL THE SMART PROPERTY REGISTER. THAT SMART PROPERTY IS A TARGET FOR AI BECAUSE YOU SAY WE WANT TO PULL THIS CAR, THAT HOUSE, AND THESE FLIGHTS, YOU KNOW, THAT COORDINATE A TRIP TO SEE WHEREVER IT HAPPENS TO BE. IF ALL THOSE ARE ATTACHED TO SMART CONTRACTS, AI FIGURING OUT WHAT’S POSSIBLE AND ARRANGE THEM INTO POSITION FOR PEOPLE OR OTHER AIs. IT GIVES YOU THIS ABILITY TO REACH OUT FROM THE AIs TO OTHERS IN THE WORLD. BLOCK CHAIN GIVES YOU A LINK. >>WHY DO YOU NEED A BLOCK CHAIN TO DO THAT?>>BECAUSE YOU NEED SOME WAY OF MANAGING THE PROPERTY RIGHTS THAT IS SECURE AND LEGAL SO THAT THE AI ACTUALLY HAS THE ABILITY TO DO THINGS LIKE RENT YOU AN APARTMENT. YOU NEED SOMETHING TO HANDLE THE AGENCY QUESTIONS, TO HANDLE THE PROOF, TO HANDLE THE PAYMENTS. THE BLOCK CHAIN IS KIND OF LIKE A LOW LEVEL CONTROL MECHANISM FOR GETTING THE REAL WORLD. >>IT’S TRUSTLESS. >>IT’S TRUSTLESS AND IT’S A MACHINE INTERFACE TO LEGAL REALITY. ONCE YOU’VE GOT THE MACHINE INTERFACE, THAT’S WHAT LETS THE AI ARRANGE THE LEGAL REALITY. ONCE YOU’VE GOT IT, IT’S ONLY ABLE TO REACH THE COMPANY THAT’S RUN BY THE AI. ONCE YOU’VE GOT ONE INSIDE APPLE, THERE’S PLENTY OF AI, BUT IT ONLY WORKS TO APPLE LOANS. IF YOU NEED TO GO TO THE GENERAL WORLD, YOU NEED THE BLOCK CHAIN AND THEN AI RUNS ON TOP OF THAT LAYER. >>YOUR VIEW IS PERHAPS WEB FREE MIGHT NOT COME BACK THE FULL DECENTRALIZATION THAT THEY’VE TALKED ABOUT AND ACTUALLY THAT IT MIGHT ROLL BACK. WHERE DO YOU THINK WE ARE?>>I WANT TO EXPAND WHAT HE WAS SAYING. WE USE BLOCK CHAIN AS A CASUAL TERM. IT MIGHT NOT ACTUALLY BE A BLOCK CHAIN. IT MIGHT BE TECHNOLOGY, DIFFERENT INFORMATION. >>IN TERMS OF AMAZON QUANTUM. IT’S NOT NECESSARILY TRUE IT WILL ALL BE BLOCK CHAIN. THERE’S A RANGE OF THINGS. >>OUR THESIS IS WHAT WE CALL CONVERGENCE. WE’VE DONE TWO PAPERS ON IT. YOU FIND THEM ON OUR WEBSITE. WE SPECIFICALLY INVEST THAT THE CONVERGENCE OF THE TECHNOLOGY WHICH INCLUDES TOKENIZATION FOR THINGS LIKE IOT OR THE PROBLEM OF BIG DATA OR MACHINE LEARNING OR AI. IOT IS COLLECTING THE DATA, HARVESTING THE DATA, SENSING THE WORLD AROUND IT. THAT THEN NEEDS TO BE MANAGED, CURATED WITHIN DATA MARKETPLACES WHICH OCEAN DOES. THEN IT MOVES ITS WAY UP TO SMART CONTRACTS AND SOMETHING MORE INTELLIGENCE LIKE AUTONOMOUS ECONOMIC AGENTS. A COMBINATION OF THE TECHNOLOGIES IS WHAT’S MOST INTERESTING. THEN TO YOUR POINT ABOUT, YOU KNOW, WHERE ARE WE NOW AND MIGHT BE THERE A MORE PRAGMATIC STEP TO WHAT I JUST ENVISIONED THERE, WHICH IS AT LEAST A TEN YEAR PROJECT, IF NOT A GENERATIONAL PROJECT ABOUT HOW WILL THESE TECHNOLOGIES COME TOGETHER, SO THERE IS AN ARGUMENT TO SAY TTHAT ETHERIUM WAS A VERY BOLD PROJECT AND WAS DRIVEN BY A PARTICULAR IDEOLOGY. THERE’S A BIG GAP BETWEEN THE WORLD TODAY AS WEB TWO AND WHAT WE MIGHT CALL WEB THREE, AND I THINK THERE’S A GOOD ARGUMENT TO SAY MAYBE THERE’S A BABY STEP WHICH IS WEB 2.5. A LOT OF PEOPLE DON’T LIKE THAT. BUT THE REALITY IS, THERE’S A LOT OF CORPORATE INNOVATION HAPPENING NOW AT IBM AND S.A.P. IS IT TRULY DECENTRALIZED. IS IT BEING USED AND DEPLOYED FOR REAL BUSINESS USE CASES? YES. I THINK THERE’S THAT TRANSITION, THIS PATHWAY TO DECE DECENTRALIZATION.>>WILL IT END UP BEING THE FRIEND TO ANOTHER FACEBOOK THAT MIGHT COME ALONG. >>ETHERIUM AS IT STANDS IS A PRETTY GOOD PROTOTYPE. WHEN YOU’RE AT THIS SECOND LEVEL, IT’S THE SAME KIND OF PERFORMANCE WE HAD FROM PUNCH CARD MACHINES IN THE 1950s APPROXIMATELY IT’S ALWAYS BEEN CLEAR THE DANCING SCALE BLOCK CHAIN WAS THE THING THAT HAD THE REALITY AND THE POWER BEHIND IT. IT’S BEEN A CONTEST OF WILLS TO SEE WHO WOULD GET TO THAT TECHNOLOGY FIRST. THE RECENT PULLING TOGETHER OF THE ETHERIUM COMMUNITY IS A CONCEPT AND THE VISION WAS THERE BECOME WHEN I WAS AT THE FOUNDATION IN 2014, 2015. IT WAS AULD CONSIDERED THE WORK LEVEL WAS AN ON RAMP AND ONCE YOU GOT THERE, YOU COULD DO POWER WILL AND IT WOULD BECOME FAST. THE THING THEY’RE CALLING ETHERIUM 2.50 ON THE JUMP. >>IT REPLACES IT, THE NEW VERSION. >>IT ALWAYS HAS TO BE THAT WAY. WHEN YOU’RE UP AGAINST AMAZON QUANTUM, WHICH THEY JUST ANNOUNCED, AMAZON’S ONLY INTERN BLOCK CHAIN PROTOCOL, IN THAT ENVIRONMENT, DO YOU WIND UP WITH SOMETHING THAT LOOKS LIKE MICROSOFT AND IT WINDS UP WINNING BECAUSE IT ENDS UP ON THE MOBILE PHONES, OR DOES IT GET TRAMPLED OR DO YOU WIND UP WITH TOTAL DOMINANCE. THAT QUESTION, IT’S THE OLD DYNAMICS OF ECOSYSTEMS AND WE ALWAYS FIND THOSE IN A BANS. EVERYBODY USES OPEN SOURCE. WE’VE NEVER YET SEEN A SITUATION WHERE OPEN SOURCE BECAME LONG TERM DOMINANT. >>AS AN INVESTOR, WHAT WOULD BE YOUR PICK?>>THE THING IS, THESE THINGS ARE SO MUCH MORE COMPLEX THAN STARTUPS. WE’RE TALKING ABOUT COMPLEX SYSTEMS. WE’RE TALKING ABOUT ECONOMIES, SO THERE’S SO MANY DIFFERENT SKILL SETS THAT NEED TO BE APPLIED, SO IT’S TOTALLY UNDERSTANDABLE THAT THE PROJECTS THAT ARE FIRST OUT THE GATE WON’T GET EVERYTHING RIGHT. I THINK ACTUALLY WHERE PROJECTS HAVE GONE WRONG IS THE RUSH TO CODIFY THINGS AND COMMIT TO HIGH DEGREES OF DECENTRALIZATION DAY ONE WHILE THEY’RE LEARNING. YOU THINK ABOUT LEAN STARTUP PRINCIPLE, YOU DON’T COMMIT CODE UNTIL YOU’VE VERIFIED ASSUMPTIONS. I THINK WE NEED TO MOVE BACK TO KIND OF A MORE AGILE APPROACH TO ACHIEVING DECENTRALIZATION. >>A LOT OF THIS IS THE BLOCK CHAIN HAS BEEN THE BOND VILLAINS. BUT THE TRACTION IS ALMOST ALWAYS AT THE OTHER END OF THE SCALE. THERE’S STILL THIS OUTGOING QUESTION CAN WE MAKE THE BIG JUMP, CAN WE CHANGE THE WORLD, OR IS IT GOING TO BE JUST A COMPONENT OF A BIG MIXED ECOSYSTEM. >>IN ONE SENTENCE, WHAT WILL YOU BE DOING NEXT YEAR?>>TOKENIZING EVERYTHING AND PROVIDING THE INTERFACES FOR THE AIs TO REACH THROUGH THE WORLD. >>I’M JUST LOOKING FORWARD TO SEVERAL OF OUR PROJECTS THAT HAVE BEEN IN DEVELOPMENT FOR AT LEAST TWO YEARS DOING THE HARD WORK OF TOKEN DESIGN AND BUILDING OUT NETWORKS THAT DIDN’T ICO COMING ONLINE AND PROVIDING, YOU KNOW, PRAGMATIC BUT STILL AMBITIOUS PROTOCOLS THAT ARE GOING TO ALLOW WEB THREE. >>THERE YOU GO. THAT’S WHAT’S GOING TO HAPPEN NEXT WE ARE. WE’LL SEE I THINK PROBABLY THE NEXT COUPLE OF YEARS MIGHT WELL STILL BE THE MOST INTERESTING TIME IN BLOCK CHAIN. FOR NOW, THANKS VERY MUCH FOR COMING TO DISRUPT BERLIN. >>LOVELY. THANK YOU.>>>OKAY. WE’RE GOING TO DO EVEN MORE. WE’RE DOUBLING DOWN ON CRYPTO HERE. ALSO PAY CLOSE ATTENTION TO THIS NEXT SESSION, BECAUSE OUR SPEAKERS WILL BE ANSWERING QUESTIONS ON THE Q&A STAGE JUST AFTER THIS. SO THIF THIS PIQUES YOUR INTERE, HEAD OVER AND ASK HER QUESTIONS. I’D LIKE TO WELCOME TO THE STAGE FROM THUNDER BEAM KYLIE AND JOSH, YOUR MODERATOR.>>SO THE FUNDING LANDSCAPE HAS CHANGED. STARTUPS ARE NO LONGER GOING PUBLIC NEARLY AS QUICKLY AS THEY USED TO. THAT’S REALLY CHANGING THE ENTIRE ECOSYSTEM OF WHO IS GETTING FUNDED, WHO IS GETTING RICH, AND WHAT’S HAPPENING TO THE FUTURE OF THE EARLY STAGE STARTUPS. SO TODAY WE’RE GOING TO TALK A LITTLE BIT ABOUT THE INDUSTRY AT LARGE AND WHAT’S GOING ON. SO FIRST I JUST WANT TO ASK, WHY DO COMPANIES WANT TO STAY PRIVATE SO LONG NOW?>>MANY REASONS. FIRST, IF YOU THINK ABOUT EASINESS OF ACCESS TO PRIVATE CAPITAL VERSUS PUBLIC CAPITAL, IT’S MUCH MORE EASIER TO GO AND APPROACH THEM AND GET THE CHECK OF NOT JUST TEN MILLIONS AND COUPLE OF HUNDRED MILLIONS, BUT BILLIONS OF DOLLARS. WE KNOW THE LATEST BIG FUNDS CREATED BY THE SOFT BANK, RIGHT? $100 BILLION AND THEY EVENT WANT TO MAKE IT BIGGER. THE SECOND REASON WHY COMPANIES, ESPECIALLY FOUNDERS WANT TO STAY PRIVATE LONGER IS THEY CONTROL THE VALUATION. THEY WANT TO BE THE MASTERS OF THE PRICE. >>RIGHT. BECAUSE WHEN THEY GO PUBLIC, THEY’RE KIND OF AT THE MERCY OF THE PUBLIC. THEY REALLY DON’T HAVE NEARLY AS MUCH CONTROL. >>YES. >>SO WHEN COMPANY DOIES DO STA PRIVATE, IT ENDS UP BLOCKING THE CAPITAL. >>YES. >>IT FLOWS TO PEOPLE WHO EVENTUALLY COME ANGEL INVESTORS.>>YES. >>WHAT ARE THE DOWNSTREAM EFFECTS OF THESE COMPANIES STAYING PRIVATE LONGER?>>WELL, DEPENDS ON WHOSE POINT YOU TAKE AND WHOSE POINT OF VIEW YOU TAKE. IF YOU THINK ABOUT THE RECALL STAGE INVESTORS FOR THEM, IT’S ABOUT GETTING ACCESS TO THE EARLY STAGE INVESTMENT, BUT THEN AGAIN GETTING EXIT FROM THE EARLY STAGE INVESTMENTS SO THAT THE CAPITAL CAN SERVE WHAT IS MEANT TO BE SERVED, TO GET INTO THE EARLY RACE AND GET OUT EARLY. SO THAT’S ONE POINT. IF YOU THINK OF THE FOUNDER’S POINT OF VIEW, THEN AT ONE POINT YOU SHOULD BE ABLE ALSO TO INCENTIVIZE YOUR EMPLOYEES AND YOU BECOME MUCH MORE APPEALING IF YOUR EMPLOYEES GET SHARES THAT AT ONE POINT BECOME TRADEABLE.>>BUT IF THEY EVENTUALLY BECOME TRADEABLE, WHY DOES IT MATTER IF THEY GET THEM WHEN THEY’RE ALREADY PUBLIC VERSUS WHEN THEY’RE STILL PRIVATE?>>THEY BECOME TRADEABLE AT ONE POINT, BUT IT MAY NOT BE IN THREE YEARS TIME. IT MAY NOT BE IN FIVE YEARS TIME. MAYBE IT’S IN NINE YEARS TIME.>>AND SO YOU THINK THIS IS AFFECTING THE RETENTION FOR THESE STARTUPS AS WELL? BECAUSE PEOPLE AREN’T NECESSARILY GOING TO STICK AROUND FOR THAT LONG?>>YEAH. WHAT DO YOU DO WITH YOUR OPTIONS IF THEY JUST STAY AS OPTIONS?>>WELL, THAT BRINGS UP THIS QUESTION OF REGULATION. SHOULD THESE — SHOULD GOVERNMENTS MANDATE THERE BELY W — BE LIQUIDITY SO THERE ARE OPTIONS AFTER THEY LEAVE OR COMPANIES MUST ALLOW EMPLOYEES TO SELL ON THE SECONDARY MARKET?>>NO. I THINK IT’S STILL THE ENTREPRENEURS SHOULD BE ABLE TO RUN THE COMPANY THE WAY THEY WANT TO RUN THE COMPANY. IT’S STILL THE FOUNDERS ON HOW TO DECIDE HOW THEY WANT TO WORK WITH THEIR EMPLOYEES. BUT WHAT I THINK WHAT THE GOVERNMENT SHOULD DO, THEY SHOULD ENABLE PRIVATE EXCHANGES WHICH GIVE US THE FOUNDERS THE OPPORTUNITY TO MAKE THE SHARES TRADEABLE. THAT’S WHAT THE GOVERNMENT SHOULD DO. >>WHAT HAPPENS WHEN A COMPANY DOESN’T WANT THEIR SHARES TRADED ON YOUR SECONDARY MARKET?>>THEN THEY WON’T TRADE ON THE SECONDARY MARKET.>>SO THE EMPLOYEES CAN’T GO AGAINST THE WISHES OF THOSE COMPANIES AND SELL THEM ANYWAY?>>NOW WE’RE GOING INTO THE LEGAL CORRIDOR, RIGHT?>>YEAH. I WANT TO HEAR ABOUT THE ILLEGAL CORRIDORS. THAT SOUNDS REALLY INTEREST. >>EVERY SINGLE COMPANY HAS A SHAREHOLDER’S AGREEMENT AND IT DESCRIBES HOW THE SHARES ARE TRADEABLE AND HOW MUCH OPTIONS ARE OL AALLOCATED AND WHAT IS HAPPENING. THIS IS WHERE IT ALL STARTS. I KNOW THAT MANY LATELY STARTED TO ASK AT LEAST CLOSE — STARTING TO WRITE IN THE SHAREHOLDER’S AGREEMENT THAT SHARES SHOULD BE TRADEABLE AND COULD BE TRADEABLE. THEN THE SECOND, IS THERE ENOUGH PRIVATE MARKETS WHERE THOSE SHARES CAN BE TRADEABLE. IS THERE ENOUGH TRADING OPPORTUNITIES FOR THOSE SHARES? THIS IS NOW WHERE THE GOVERNMENTS STEP IN. IT’S NOT ACTUALLY VERY EASY TO TRADE THE PRIVATE SHARES AND MAKE THOSE PRIVATE SHARES TRADEABLE.>>WHY WOULDN’T THEY SORT OF WANT THEIR SHARES TO TRADE ON THE SECONDARY MARKET IF YOU SAID THAT THAT ACTUALLY WILL ENHANCE RETENTION? PEOPLE WILL WANT TO GO WORK FOR A COMPANY IF THEY KNOW THEY’RE GOING TO BE ABLE TO TRADE THE SHARES LATER.>>IT’S THE GIVING OPPORTUNITY FOR EARLY STAGE INVESTORS TO DO THEIR JOB PROPERLY, WHICH IS EXIT PROPERLY. SECOND IS TO ENGAGE YOUR CUSTOMERS AND PARTNERS, BECAUSE WHEN YOU MAKE YOUR SHARES TRADEABLE, YOU ENABLE THE FAMILY AROUND YOU, THE NETWORK AROUND YOU TO BECOME NOT JUST YOUR CLIENT, BUT ALSO YOUR INVESTOR AND INVENCENTIVIZE THE CLIENTS PARTNER RELATIONSHIP AND THE EMPLOYEES AS WELL. >>YOU’RE SAYING IN SOME CASES STARTUP FOUNDERS DON’T WANT THEIR SHARES TO TRADE ON THE SECONDARY. IF SO, YOU GUYS DON’T ALLOW THEM TO BE TRADED AND THEY HAVE TO GO INTO THOSE ILLEGAL CORRIDORS. WHY WOULDN’T THEY WANT THEM TO TRADE ON THE SECONDARY MARKET?>>WHEN I WAS — MY BACKGROUND IS I WAS THE CEO OF NASTEC IN ESTONIA. AT THE END OF THE DAY, IT’S EITHER THE DECISION OF THE FOUNDER AND THE CEO WHETHER TO MAKE THE COMPANY TRADEABLE ON THE PUBLIC MARKET OR THE PRIVATE MARKET, AND THE SECOND IS EITHER IT’S COMING FROM THE RULES AND REGULATIONS, WHICH WAS ONE OF THE REASONS WHY, FOR EXAMPLE, FACEBOOK BECAME PUBLIC OR WHY THEY WERE FORCED TO GO PUBLIC IN THE STATES WHERE THEY WERE.>>BECAUSE THEY REACHED THAT 500 SHAREHOLDER LIMIT AND THEY HAD TO GET IT DONE?>>YES.>>IT MAKES SENSE IF A COMPANY DOESN’T WANT THEIR SHARES TO BE SOLD ON THE SECONDARY, IT’S BECAUSE THEY’RE WORRIED THEY MIGHT GET FORCED TO GO PUBLIC BEFORE THEY’RE READY. >>YEAH, BUT NOWADAYS, WHAT I SEE IS WHAT IS CHANGING IN WHATEVER IT IS, THE PRIVATE MARKET OR THE PUBLIC MARKET, IS THE COMPANIES AND THE STARTUPS VERY MUCH VALUE THE CROWD AROUND THEM. AND VERY MUCH VALUE THE NETWORK AROUND THEM. AND BUILDING UP A NETWORK EFFECT IS SOMETHING THAT YOU CAN DO WHILE MAKING THE COMPANY, EVEN IF IT’S ON THE PRIVATE MARKET, MAKING IT TRADEABLE. YOU CAN MAKE THE FAMILY OR YOUR NETWORK EVEN CLOSER TO YOU. THEY ARE YOUR SHAREHOLDERS, WHICH MEANS THEY WILL START WORKING FOR YOU BUT THE SHARE PRICE WILL GO UP. I SEE IT’S BECOMING, EVEN WHEN WE TALKED, FOR EXAMPLE, ABOUT THE ICOs, IT’S ALSO THE NETWORK EFFECT. IT’S NOT JUST ABOUT THE RAISING THE CAPITAL, BUT IT’S ABOUT BUILDING THE NETWORK AND INVENT VIE V — INCENTIVIZING THE NETWORK. THE PRICE DEPENDS ON THE COMMUNITY EFFECT AND THE NETWORK EFFECT. >>STARTUPS CAN BE WORRIED ABOUT SELLING THE SHARES ON THE SECONDAR SECONDARY MARKET. SOMETIMES STARTUPS GO PUBLIC TOO SEASON. DO YOU HAVE EXAMPLES OF COMPANIES YOU THINK RACED TO GO PUBLIC WHICH WOULD HAVE BENEFITED BY USING SECONDARY MARKETS AS A LIQUIDITY OFF VALVE SO THE PEOPLE COULD GET LIQUIDITY. >>THE ONES WHO HAVE EXAMPLES?>>THE ONES THAT HAVE PROBLEMS BECAUSE OF GOING PUBLIC TOO SOON. >>WE CAN’T GENERAL RISE IT SPECIFICALLY BECAUSE THAT THEY WENT PUBLIC. THE COMPANY HAD SOME KIND OF PROBLEMS. THE PROBLEMS RAISE WHEN YOU GO PUBLIC ON THE WRONG REASONS. IF THE COMPANY’S FORCED TO GO PUBLIC, THEN THE ATTITUDE IS ALWAYS OH, I HAVE TO BE HERE. I DON’T WANT TO BE HERE. IF THE COMPANY WANTS TO GO PUBLIC, THE ATTITUDE IS FROM THE START VERY DIFFERENT. YOU WANT TO BE PUBLIC, WHICH MEANS YOU BEHAVE LIKE A PUBLIC COMPANY, YOU TREAT YOUR PUBLIC INVESTORS, YOU PRODUCE THE INFORMATION, PUBLISH THE INFORMATION. IT’S VERY DIFFERENT. WE CAN’T GENERALIZE IT. >>I’M NOT ASKING YOU TO GENERALIZE. I’M ASKING FOR SPECIFIC EXAMPLES OF COMPANIES THAT WENT PUBLIC AND THEN ENDED UP FLOPPING AT LEAST FOR A FEW YEARS. I THINK OF TWITTER OF BEING A BIG EXAMPLE. THEY WENT PUBLIC WHEN THEIR BUSINESS WAS NOT SET UP RIGHT. THEY WERE NOT MAKING NEARLY ENOUGH REVENUE. THEY HAD NOT FIGURED OUT THEIR AD PRODUCTS. SO THE CHAIR PRICE CRATERED AND NOW ONLY YEARS AND YEARS LATER ARE THEY FINALLY RIGHTING THE SHIP AND FINALLY GETTING TOWARDS PROFITS. ARE THERE ANY OTHER COMPANIES YOU THINK TOOK THAT PATH OF GOING PUBLIC TOO SOON?>>YEAH. BUT THEY DIDN’T — THE TROUBLE IS NOT BECAUSE THEY WENT PUBLIC. IT WAS TOO EARLY, YES. BUT WHY DID THEY GO PUBLIC? I WOULDN’T SAY THAT IT’S WHAT YOU SAY IS EXACTLY IN ONE TO ONE CORRELATION. >>SURE. DO YOU HAVE ANY OTHER EXAMPLES OF COMPANIES THAT WENT PUBLIC TOO SOON?>>WE CAN SAY THE SAME ABOUT, FOR EXAMPLE, LINCOLN. THEY ALSO MADE PUBLIC OR WENT PUBLIC A BIT TOO SOON. THERE’S ANOTHER INTERESTING STORY — GOOGLE ALSO WENT PUBLIC A BIT TOO SOON, BUT IT WAS 2004. THEY RAISED AROUND $36 MILLION BEFORE GOING PUBLIC. >>HOW CRAZY IS THAT THAT GOOGLE HAD ONLY RAISED $36 MILLION BEFORE GOING PUBLIC WHEN NOW THAT’S LIKE A TOSS OFF ROUND. YOU SEE A DOZEN OF ON TECHCRUNCH EVERY DAY. >>YES. BUT FOR THE GOOGLE, MAYBE THEY COULD HAVE ALSO RAISED SOME PRIVATE CAPITAL BEFORE AND COULD HAVE BEEN PRIVATE FOR A WHILE. BUT THEY DIDN’T. SO WHICH SIDE DO YOU TAKE? DO YOU TAKE THE FOUNDERS SIDE OR YOUR COMPANY SIDE OR THE INVESTOR’S SIDE, RIGHT?>>YOU GUYS HAVE BUILT SOMETHING REALLY FASCINATING THROUGH THE BLOCK CHAIN. OBVIOUSLY CRYPTOCURRENCY PRICES ARE CRATERING RIGHT NOW AND THE AIR ERA OF SPECULATION IS COMING TO AN END. PEOPLE WANT TO SEE TRUE UTILITY OUT OF THE BLOCK CHAIN IF ANYTHING IS GOING TO COME WORTHWHILE. WHAT HAVE YOU DONE WITH THE BLOCK CHAIN AND HOW HAS THAT HAPPENED YOUR BUSINESS?>>FUNDING AND TRADING PLATFORM OF THE PRIVATE COMPANIES, WHEN COMPANIES RAISE FUNDS, THEN EVERY SINGLE INVESTMENT WE REQUIRE IN THE BLOCK CHAIN AND WE RECORD THE TRANSACTION IN A BLOCK CHAIN. IN A WAY, WE ARE LIKE A PRIVATE EXCHANGE. AND THE WAY WE USE THE BLOCK CHAIN IS LIKE A LEDGER, SO WE KEEP IT TO PROVIDE THE TRUST ON THE INVESTMENTS AND ON THE TRANSACTIONS. AND THE FUNNY THING ACTUALLY AT THE BEGINNING WHEN WE BUILT IT, STARTED TO BUILD IT IN 2015, THEN WE ALSO BUILT THE TRADING ON THE BLOCK CHAIN. AND THEN WE UNDERSTOOD THAT THE CAPACITY AND THE SPEED OF RUNNING A TRADING PLATFORM ON THE BLOCK CHAIN AS THE PRIMARY SOURCE WASN’T ENOUGH TO SPEED IT. WE DO TRADING NOW OFF SIGHT ON OUR DATABASE AND THEN RECORD THE INVESTMENTS ON THE BLOCK CHAIN. WE WERE A BIT TOO EARLY IN THE TECHNOLOGY WE CAN SAY. >>SO YOU WERE BURNED BY BLOCK CHAIN TOO. YOU GUYS TRIED TO PUT YOUR WHOLE TRADING PLATFORM ON THERE, BUT YOU END OF JUST KEEPING TRACK WITH A LEDGER OF WHO OWES WHAT. >>YEAH. BUT THAT’S STILL THE REMAINING PROBLEM RIGHT NOW OF THE PUBLIC BLOCK CHAINS. AND IF YOU RUN YOUR SYSTEM ON THE PRIVATE BLOCK CHAIN, YOU CAN HAVE THE SPEED AS YOU WANT, BUT THEN THERE’S THE PHILOSOPHICAL QUESTION BETWEEN THE PRIVATE AND THE PUBLIC BLOCK CHAINS. BUT IT ENABLES US TO GET RID OF ALL THE SERVICE PROVIDERS ON THE POST TRADE, SO WE DON’T HAVE THEM. >>YOU DON’T HAVE BROKERS AND PEOPLE LIKE THAT. DOES THAT MEAN NOBODY HAS TO PAY THOSE EXTRA FEES?>>YEAH.>>DO YOU GUYS TAKE A CUT. >>WE TAKE A CUT ON THE FUNDS RAISED AND ON THE TRADE. >>HOW DOES THAT COMPARE TO WHAT A BROKER WOULD CHARGE?>>IT’S NOT JUST ABOUT BROKER WHEN WE TALK ABOUT THE MAIN STOCK MARKETS. IT’S THE BROKER. THEN YOU HAVE THE CLEARING AGENTS AND THE SENTIMENT AGENT AND ALL THE CENTRAL ENTITIES AND IT’S ABOUT THE TRADING FEE. IT’S ABOUT THE BROKERAGE FEE. THEN IT’S ABOUT THE ACCOUNT FEE. THERE’S DIFFERENT FEES WITH ACTUALLY THE INVESTORS PAY IN. >>SPEAKING OF BLOCK CHAIN, LAST YEAR WE SAW THIS MASSIVE WAVE OF ICOs, ALL THESE BLOCK CHAIN COMPANIES RAISING JUST SOMEWHAT LUDICROUS AMOUNTS OF MONEY WITH VERY LITTLE ACCOUNTABILITY. I THINK THE INVESTORS HAVE KIEB KIND OF WISED UP SAYING WE WANT A SAY IN WHAT’S GOING TO HAPPEN WITH THE COMPANY. WE’RE NOT JUST GOING TO HAND YOU THE MONEY. ARE ICOs STILL A REPUTABLE ALTERNATIVE TO IPO?>>THERE’S IPO, ICO, STO. STO IS A SECURITY TOKEN. WHAT IS INTERESTING AND WHAT THE ICOs AND STOs HAVE BROUGHT, THEY HAVE BROUGHT ADDITIONAL POSSIBILITIES FOR THE FOUNDERS TO MANAGE THEIR OWN FINANCING GROUNDS AROUND THE COMPANY. WHAT DO I WANT TO RAISE THE FUNDS? AND WHAT DO I WANT TO KEEP OUT FOR THE INVESTORS? IS IT JUST THE COMMUNITY TOKEN, OR IS IT THE PIECE OF MY EQUITY? ICOs, I THINK WHAT IT HAS DONE LAST YEAR, IT HAS DEFINITELY CHALLENGED THE MAIN EXISTING MARKETS, STOCK MARKETS, NASDAQ HERE IN DEUTSCH, IN THIS MARKET, WHETHER THE ICO IS GOING TO BE THE ALTERNATIVE FOR THE IPO, I’M NOT SURE, BUT STOs I THINK ARE GOING TO CHALLENGE STOCK EXCHANGES MORE AND MORE. BASICALLY ON ONE TECHNOLOGICAL LAYER, ONE LAYER OF TECHNOLOGY, YOU CAN BUILD A WHOLE SYSTEM AND STILL GIVE INVESTORS THE EQUITY, GIVE THEM THE SHARES, SOME FORMS OF SECURITY. YOU MAKE IT TRADEABLE.>>DO THEY GET VOTING RIGHTS AS WELL?>>YES.>>BECAUSE I THINK — I DON’T THINK A LOT OF IPO INVESTORS OR PUBLIC MARKET INVESTORS ARE FEELING TOO SORE ABOUT MISSING THOSE ICO INVESTMENTS CONSIDERING HALF OF THOSE STARTUPS HAVE DISAPPEARED INTO THE WIND AND TAKEN THE MONEY WITH THEM. >>BUT IF IT’S A SECURITY TOKEN, WHICH IS BUILT UP LIKE AN EQUITY TOKEN, FOR EXAMPLE, WE DO IT THROUGH THE NOMINEE STRUCTURE. A NOMINEE GIVES YOU THE VOTING RIGHT. THEN YES, THIS IS WHAT YOU DO AND THOSE PLATFORMS CAN ACTUALLY RUN IT. >>WE TALKED ABOUT THE BENEFITS OF STAYING PRIVATE, BUT ARE THERE EVER EXAMPLES OF STAYING PRIVATE MEANS A COMPANY MISSES TS ITS WINDOW TO IPO OR THE COMPETITION BECOMES A LOT WORSE AND IT GETS MUCH HARDER?>>WELL, BEFORE THE — MISSING THE WINDOW IS WHEN YOU FOLLOW THE MARKETS, RIGHT, WHEN YOU FOLLOW WHAT’S HAPPENING IN THE STOCK MARKETS, YOU DEFINITELY MISS THE WINDOW. IF COMPANIES WANTED TO GO PUBLIC. BUT THEN THE DOT COM HAPPENED OR 2007, 2008 HAPPENED AND YOU MISSED THE WINDOW. THIS IS ONE THING. THE SECOND AROUND THE GOING PUBLIC IS, AGAIN, WHAT IS THE INCENTIVE OR WHAT IS THE REASON OF THE COMPANY? DO I WANT TO RAISE ADDITIONAL CAPITAL OR DO I WANT TO MAKE MY SHARES TRADEABLE AND GET THE LID WIC — LIQUIDITY OF THE COMPANIES. I CAN’T NAME A COMPANY WHO SAYS SPECIFICALLY I REGRET NOT GOING PUBLIC EARLIER. >>I THINK OF PALENTIER, IF THEY’D GONE PUBLIC IN 2014, 2015, BEFORE THE BACKLASH AGAINST BIG DATA AND INVASIVE PRIVACY STUFF, I THINK THEY COULD HAVE HAD A LOT MORE SUCCESS. INSTEAD THEY STAYED PRIVATE AND IT’S A RAT’S NEST THEY HAD TO DEAL WITH AND EVERYONE THINKS IT’S THIS EVIL COMPANY. >>LOOKING BACK AT WHAT HAPPENED, AND AGAIN, WHAT POSITION DO YOU TAKE? DO YOU TAKE THE POSITION OF THE INVESTORS OR DO YOU TAKE THE POSITION OF THE FOUNDERS?>>WELL, I THINK WHAT HAPPENS IS WHEN YOU GO PUBLIC, YOU’RE REALLY FORCED TO BE JUDGED BY YOUR METRICS, YOUR ACTUAL REVENUES, WHEREAS WHEN YOU’RE PRIVATE, YOU GET TO BE VALUED BY YOUR HYPE WHICH CAN BE GOOD OR BAD DEPENDING ON HOW THE ECOSYSTEM IS SWIRLING. JUST TO RECAP SOME OF THE AWESOME INSIGHTS, THESE COMPANIES ARE TRYING TO STAY PRIVATE BECAUSE THEY WANT TO CONTROL THEIR VALUATIONS. THAT CAN HAVE PROBLEMS FOR THE DOWNSTREAM ECOSYSTEM, BECAUSE THERE’S LESS MONEY BEING REINVESTED INTO NEW STARTUPS BY ANGELS AND IT CAN HURT RETENTION IF THEY DON’T — IF EMPLOYEES FEEL LIKE THEY’RE NEVER GOING TO GET THEIR MONEY BACK, THEY’RE NEVER GOING TO GET RICH. STARTUP FOUNDERS WANT TO KEEP CONTROL AND THEY WANT TO BUILD THIS COMMUNITY SURROUNDING THEM. THAT’S WHY OFFERING LIQUIDITY TO THEIR PROCESS AND EARLY INVESTORS CAN ACTUALLY HELP BUILD THIS CROWD THAT WILL HELP SUPPORT THEM AND CREATE THIS FAMILY FOR THEM. THERE’S ALWAYS GOING TO BE COMPANIES LIKE LINKEDIN OR TWITTER OR GOOGLE WHO WENT PRIVATE A LITTLE BIT TOO EARLY, BUT IF YOU THINK ABOUT WHAT YOU WANT TO DO WITH YOUR COMPANY, IF YOU PLAN PROPERLY AND YOU TAKE THE WINDOW WHEN YOU HAVE IT AND YOU — INSTEAD OF RUSHING TO GO PUBLIC, YOU STAY PRIVATE FOR AS LONG AS YOU NEED TO GET YOUR BUSINESS RIGHT, YOU’RE NOT GOING TO SEE THAT TERRIBLE SITUATION WHICH YOU HAVE WITH SNAPCHAT WHERE YOU GO PUBLIC AND THERE’S ALL THAT HYPE, AND THEN EVERYTHING COMES CRASHING DOWN. THANK YOU ALL FOR WATCHING AND THANK YOU FOR THE PANEL. >>THANKS.>>>LADIES AND GENTLEMEN, PLEASE WELCOME BACK TO THE STAGE TECHCRUNCH SENIOR WRITER AND YOUR BALTTLEFIELD HOST, ANTHONY HA. >>HELLO. WE HAVE ONE MORE SESSION OF THE STARTUP BATTLEFIELD TODAY. YOU’RE GOING TO SEE FOUR MORE STARTUPS WHO AGAIN HAVE BEEN CHOSEN FROM HUNDREDS OF APPLICATIONS. YOU’RE ALSO GOING TO SEE THE WILD CARD COMPANY CHOSEN FROM THE START. THEY FOUND OUT LAST NIGHT THAT THEY’RE GOING TO BE PRESENTING, SO THAT SHOULD BE ESPECIALLY INTERESTING. THAT WILL BE THE VERY LAST STARTUP THAT PRESENTS. THEY WILL PRESENT FOR SIX MINUTES. THERE WILL BE SIX MINUTES OF Q&A. TONIGHT WE’RE GOING TO ANNOUNCE THE FINALIST. TO HELP US CHOOSE THE FINALIST, WE’VE GOT A NEW SET OF EXPERT JUDGES. LET’S BRING THEM OUT. WE HAVE ALEXIA, THE FORMER CO-EDITOR IN CHIEF OF TECHCRUNCH. NOW SHE’S THE GENERAL PARTNER OF HER NEW FUND DREAM MACHINE WHICH HELPS EXCEPTIONAL FOUNDERS MAKE SCIENCE FICTION INTO NONFICTION. NEXT, WE HAVE SUNALI, PARTNER AT AKSEL VENTURES WHERE SHE’S LED IN SPOTIFY AND MANY OTHERS. NEXT WE HAVE STEPHAN, PARTNER AT LAUNCH HUB VENTURES. HE’S ALSO THE CO-ORGANIZER OF DIGITAL K, A LEADING EUROPEAN TECH CONFERENCE. NEXT WE HAVE ZEPHI, A GENERAL MANAGER AT EF BERLIN. NOT ONLY DOES HE MANAGE EF BERLIN, HE WAS PART OF THE FIRST COHORT IN LONDON. AND LAST WE HAVE CHRISTIAN, PARTNER AT CHERRY VENTURES WHO IS ALSO THE FIRST CHIEF MARKETING OFFICER AT ZOLONDO. GIVE IT UP FOR ALL OF OUR JUDGES. THAT MEANS IT IS TIME TO BRING OUT OUR VERY FIRST START UP SPIKE.>>I WILL LIVE EIGHT YEARS LESS THAN YOU. IT’S BECAUSE I’M DIABETIC. DIABETES IS AN AUTO IMMUNE DISEASE THAT AFFECTS A PERSON’S ABILITY TO REACT TO INSULIN. AND ENSLAVING US TO INSULIN INJECTIONS LIKE THIS ONE. EVER SINCE MY DIAGNOSIS, I’VE INJECTED MYSELF WITH ALMOST 30,0 30,000 INSULIN INJECTIONS, BUT THAT WASN’T ENOUGH. YOU SEE, THE PROBLEM IS I STILL MISS MORE THAN 3,000 INJECTIONS. I’VE MISCALCULATED MORE THAN 6,000 DOSAGES. LIVING WITH DIABETES IS EXTREMELY DIFFICULT, BECAUSE EVERYTHING AFFECTS MY SUGAR. FROM FOOD, MEDICATION, ACTIVITY, STRESS, AND EVEN THE WEATHER. ALTHOUGH I’VE TRIED MULTIPLE APPS TO LIVE BETTER WITH DIABETES, ALL THEY DID WAS GIVE ME FANCY TOOLS SO THAT I CAN INPUT MY BEHAVIOR AND MY MOMENTS OF SHAME. WELL, NOT ANYMORE. INTRODUCING TO YOU SPIKE, THE SMARTEST DIABETES ASSISTANT IN THE WORLD. US USING ITS TECHNOLOGY, SPIKE AUTOMATICALLY MONITORS YOUR BEHAVIOR, ROUTINE, AND VITALS SO THAT IT CAN PROVIDE YOU WITH THE PERFECT INSULIN AND FOOD SUGGESTIONS. LET’S JUMP OVER TO THE DEMO TO SEE OUR CMO MICHELLE, WHO IS ALSO DIABETIC, HOW SPIKE WILL HELP HER. MICHELLE HAS BEEN STRESSING ABOUT THE PITCH JUST LIKE ME. SPIKE, USING HER HEART RAKE AND ACTIVITY DETECTED SHE’S IN STRESS AND SHE MIGHT BE HAVING A H HYPOGLYCEMIC MOMENT AND TO LET HER KNOW HER SUGAR LEVEL. IT ONLY TAKES A SECOND. SHE’S GOING TO SYNC IT. NOW WE CAN SEE ON THE OVERHEAD THAT SHE IS INDEED BELOW THE LOWER LIMIT. SHE’S 56 MILLIGRAMS PER DECILITER. I’VE HAD SUGAR BEFORE I CAME SO I’M NOT GOING THROUGH IT. SHE CAN ALSO COMPARE THAT CURVE TO HER STRESS TEMPERATURE AROUND HER INSULIN AND EVEN HER STEPS SO THAT SHE CAN KNOW BETTER WHAT’S HAPPENING. NOW, USUALLY IN THESE MOMENTS, DIABETICS GET FOOD. FOR THAT CRUNCH WE CREATED A SPECIAL TABLET WHICH WOULD LIMIT HER ACTIVITY OF GOING TO McDONALD’S. AS SOON AS MICHELLE ARRIVES TO McDONALD’S, SHE WOULD RECEIVE THE TOP THREE OPTIONS SHE CAN HAVE BASED ON HER DIET RESTRICTIONS AND HER NEED AND HER GLUCOSE LEVEL. AFTER THAT SHE WOULD RECEIVE A REMINDER TO TAKE HER INSULIN. LET’S GO BACK TO PRESENTATION. AS FOR HER GUARDIANS AND HER DOCTORS, THEY ARE INFORMED IN REAL TIME ABOUT HER DIABETIC SITUATION RECEIVING ALERTS IF UNUSUAL PATTERNS HAPPEN OR IF SOMETHING IS INDEED IN DANGER. TODAY THERE ARE MORE THAN 2,500 DAILY ACTIVE DIEBABETICS ALL AROUND THE WORLD USING SPIKE AND THEY ARE LOVING. 87% TRANSFERRED FROM OTHER APPS TO USE SPIKE. THAT’S NOT A SURPRISING CONVERSION RATE, BECAUSE SPIKE IS EXPERIENCED DIFFERENTLY. IT CHANGES THINGS FROM DOING MORE WORK TO WORRYING LESS. NOW, LIVING WITH DIABETES ISN’T JUST EXTREMELY DIFFICULT. IT’S TEN TIMES MORE EXPENSIVE. THIS IS WHY SPIKE IS FOREVER FREE FOR DIABETICS TO USE. WE TALK WITH INSURANCE COMPANIES, SELF-INSURED EMPLOYERS AND OTHER ENTITIES INTERESTED IN KEEPING YOU HEALTHY. NOT JUST HEALTHY, BUT KEEP YOUR PRODUCTIVE UP, BECAUSE DIABETICS COST THE U.S. $90 BILLION A YEAR IN LOST PRODUCTIVE. TO DATE WE HAVE BEEN SUPPORTED BY MORE THAN TEN INTERNATIONAL ORGANIZATIONS AND FUNDED AS WELL AND I’M PROUD TO SAY THAT THE KINGS COLLEGE HOSPITAL OF LONDON IS OUR MEDICAL AND RESEARCH PARTNER. BUT NOT JUST THAT. ONE OF THE LARGEST PHARMACEUTICALS IN THE WORLD HAS PARTED WITH US AFTER THEY SAW THE IMPACT WE CREATED ON DIABETICS WAY OF LIVING WITH INSULIN. BEHIND SPIKE IS A PASSIONATE TEAM OF DIABETICS, ENGINEERS, PH.D.s AND NUTRITIONISTS. WITH MORE THAN 13 PATENTS IN THE DIABETIC FIELD. BUT WE ALSO HAVE FUN EVERY SINGLE DAY. BY THE TIME I’VE TOLD YOU ABOUT SPIKE, 24 PEOPLE DIED FROM DIABETES. 16 OF THEM DIED BECAUSE THEY DIDN’T MANAGE THIS DISEASE PROPERLY. WE COULD HAVE SAVED THEM WITHOUT THEM HAVING TO DO ANY WORK BY MA MAKING DIABETES MANAGEMENT LESS DIFFICULT. THANK YOU. >>JUDGES. >>I CAN GO FIRST. UNFORTUNATELY, MY FATHER PASSED AWAY FROM DIABETES. IT’S VERY NEEDED. YOU DID REALLY GREAT SO YOU SHOULDN’T HAVE BEEN STRESSED. >>YOUR STRESS LEVEL SHOULD GO DOWN. >>IN MY EXPERIENCE, IT’S NOT JUST ABOUT THE INSULIN. IT IS SO MUCH ABOUT BEHAVIOR. BECAUSE THE NUMBERS YOU CALLED ARE ALL ABOUT BEHAVIOR CHANGE, AROUND EXERCISE, AROUND WHAT YOU EAT. HOW DO YOU MAKE THIS AN APP THAT’S NOT JUST ABOUT MEASURING INPUT AND OUTPUT AND THEN ACTUALLY TRY TO CHANGE BEHAVIOR OVER TIME?>>ABSOLUTELY. WE STARTED WITH INSULIN REMINDERS BECAUSE IT WAS THE EASIEST WAY TO CAPTURE DIABETICS, BUT WE LOOK AT YOUR DAY-TO-DAY ROUTINE AND START TO FIND SLOTS WHERE WE CAN EVEN SUGGEST ACTIVITIES TO YOU. WALK AN EXTRA TEN MINUTES AFTER YOUR MEAL SO THAT YOU CAN DECREASE YOUR INSULIN CONSUMPTION OR BURN SUGAR LESS. SLEEPING PATTERNS ARE VERY IMPORTANT AS WELL. THERE ARE MANY THINGS THAT WE CAN INTRODUCE, BUT AS WE BUILD WITH SPIKE, COLLECT DATA, UNDERSTAND IT MORE, THEN WE WILL BE ABLE TO PROVIDE SUCH KIND OF ACTIVITIES AND I TOTALLY AGREE WITH YOU, IT’S NOT JUST THE INSULIN. IT’S ALSO THE BEHAVIOR. >>I HAVE ONE QUESTION. I SEE YOU’RE WEARING SOME KIND OF PATCH. TELL US MORE ABOUT IT. DO YOU NEED TO CHANGE IT? DO PEOPLE NEED TO WEAR IT ALL THE TIME? HAVE YOU CONSIDERED A MORE FANCY WEARABLE DEVICE?>>ABSOLUTELY. THIS PATCH, WE DIDN’T DEVELOP IT. THIS ISN’T OUR PATCH. THIS IS FROM A PHARMACEUTICAL. WE SUPPORT TODAY MORE THAN TEN GLUCOMETERS. WE DON’T WANT TO KEEP OUR MARKET TO PEOPLE WHO CAN PAY FOR IT. YOU DON’T NEED TO INPUT DATA INTO SPIKE FOR IT TO WORK. MANY OF THE SITUATIONS THAT WE COVER DO NOT NEED YOUR INTERACTION. THEY WILL JUST HAPPEN JUST LIKE ENTERING McDONALD’S, FOR EXAMPLE, THAT DOESN’T REQUIRE ANY PRIOR INPUT. BUT IT IS GOOD TO FIND BETTER WAYS TO INPUT DATA SUCH AS THIS SIMPLER WAY WHICH IS JUST TAPPING YOUR PHONE.>>ONE QUESTION. FIRST OFF, THANK YOU. IT WAS GREAT. WHAT CHANGE MAKE THIS IS POSSIBLE NOW? ONE OF THE THINGS YOU SAID IS THERE WERE ALL OF THESE PREVIOUS APPS THAT NEVER REALLY SOLVED THE PROBLEM. WHAT WAS IT THAT SHIFTED NOW TO MAKE IT A VIABLE THING?>>IT WAS UNDERSTANDING THAT THE PROBLEM DOESN’T HAPPEN AFTER THE INCIDENT HAPPENS. THE PROBLEM HAPPENS BEFORE THE INCIDENT HAPPENS. AND BY INCIDENT, I MEAN HAVING FOOD OR MISSING YOUR DUES OR NOT DOING YOUR ACTIVITY. BY UNDERSTANDING WHERE THE PROBLEM IS WE WERE ABLE TO USE TECHNOLOGY TO START SHIFTING OR ADDING VALUE TO THAT — ADDING VALUE TO THAT SPACE. I THINK THE PROBLEM WITH OTHER APPS IS THAT THEY WERE BUILT BY PEOPLE WHO AREN’T TREATED DIABETICS, BUT STUDIES DIABETICS. THEY LOOK AT THEM AND SEE THE CHARTS SAY THAT THEY HAVE ELEVATED GLUCOSE LEVELS AFTER THEY EAT. BUT AS A DIABETIC AND AS A TECHNICAL PERSON, I REALIZE WHERE THE PROBLEM IS AND WHERE I CAN SOLVE IT.>>YOUR MAIN DIFFERENTIATION IS THAT YOUR DIEBABETICS ARE BUILDG THE APP? THEY’RE DIABETIC AND THEY’RE BUILDING IN DIABETES MANAGEMENT.>>IT’S MULTIPLE THINGS THAT MAKE US DIFFERENT. THE TECHNICAL SKILLS, THE SUPPORT TEAM THAT WE HAVE, THE DISEASE THAT HAVE INVESTED IN US WHO ARE ALSO IN THE HEALTH CARE INDUSTRY, ALL THAT ASIDE, A PATENT PENDING ON OUR TECHNOLOGY OF SITUATION DETECTION, ALL THAT ASIDE, WE HAVE A VESTED INTEREST THAT I PERSONALLY FEEL OBLIGATED TO FULFILL THE REASON I STARTED SPIKE IS BECAUSE I WAS IN A DOWN TIME IN MY DIABETIC LIFE. I QUIT BEING A CEO OF ONE OF THE LARGEST CROWD PLATFORMS TO FIND WAYS TO LIVE BETTER AND HELP OTHER PEOPLE NOT REACH THE STAGE I’VE REACHED. I LOVE IT THAT THEY ARE AS WELL DOING SOMETHING TO MANAGE DIABETES, BUT WE WILL NOT SLEEP AS SPIKE BEFORE WE GET A SOLUTION OUT THERE. I GUESS THIS DEDICATION SETS UP SUPPORT. >>YOU ALSO HAVE A VERY GOOD NAME.>>WHAT IS YOUR GROWTH STRATEGY? HOW ARE YOU GOING TO USE ACQUISITION, WHAT HAS WORKED SO FAR IN THE PAST? HOW ARE YOU GOING TO GROW FROM 2,500 USERS TO 500,000, A MILLION?>>FANTASTIC. TODAY THE NUMBERS ARE AROUND BETWEEN 8,000 AND 9,000 TOTAL USERS OF WHICH MORE THAN 2,500 ARE DAILY ACTIVES WHO CROSS THE PERIOD. WE’VE BEEN GROWING ORGANCALLY BY WORD OF MOUTH. IT WAS TO BE TESTED AMONG A FEW DIABETICS. HOW DO YOU GHETTET TO HAVE MORE DISABILITIES FOR PATIENTS?>>ALL RIGHT. GIVE IT UP FOR SPIKE.>>NEXT UP, WE HAVE IMOGO AI. COME ON OUT.>>HI, EVERYONE. BY 2015 WE NEED TO — IT MAKES IT POSSIBLE FOR THESE COMPANIES TO HAVE NEW TYPES OF SEEDS. BY LOOKING AT THIS QUALITY, SUCH AS THIS ISS — IT IS A VERY COSTLY AND COMPLEX PROCESS. IT TAKES AROUND SIX TO EIGHT YEARS FOR NEW AND IMPROVED. CURRENTLY CONVENTIONAL METHODS USED ARE LABORIOUS, TIME CONSUMING, AND INACCURATE. SCALES, AND EVEN MECHANICAL STARTERS INTERVIEWS HUMAN BIAS WHICH DECREASES PRECISION. INTRODUCING AMAGI AI, DOES AUTONOMOUS QUALITY ASSESSMENT OF FOOD PRODUCTS BY JUST CLICKING AN IMAGE. BUT PHENOTYPING, IT INCREASES SEED HYBRID SELECTION AND INFORM MEASURES, INCREASING GENETIC GAIN. HENCE THE DATA COLLECTED TO OUR SOFT SOFTWARES HELPED THIS COMPANY TO PRODUCE BETTER QUALITY OF SEEDS IN LESSER TIME. IMAGINE A RICE BREEDER WHO IS TRYING TO FIGURE OUT WHICH CROPS TO BREED NEXT, BECAUSE THIS SEASON CROPS HAVE LOTS OF DISEASE. SO LET’S MOVE TO THE NEXT. HERE THE BREEDER WANTS TO MEASURE THE PRODUCTIVITY FOR HIS PLANTS. HE TAKES THE MULTIPLE PLANTS. THESE ARE THE FIELD MEASURES TAKEN FROM THE RICE FIELD AND THEN HE ENTERS HIS FIELD INFORMATION. AND HERE WHAT YOU ARE SEEING IS A SYSTEM CALCULATING 70% OF EACH AND EVERY INDIVIDUAL LEAF AND EVEN HE LIGHTING THE SYMPTOMS JUST BY YELLOW COLOR. BACK TO PRESENTATION, PLEASE. BREEDER CAN ALSO DO — A PLATFORM PROVIDES INFORMATION ON PROBLEM OF DISEASE AND THE LIKELIHOOD OF INFECTION FOR FUTURE PLANTS FROM THE SAME SET OF SEEDS. HENCE BY ESTABLISHING THIS PATTERN, BREEDER IS NOW ABLE WITH THE INFORMATION TO BETTER BREED AND SELECT NEXT BATCH OF SEEDS. SO OUR TECHNOLOGY IS AI, COMPUTER VISION, AND MACHINE LENDING. SO AI IS BUILT WITH THOUSANDS OF IMAGES COLLECTED. OUR TECHNOLOGY IS INDEPENDENT OF IMAGE COLLECTION METHODS, EITHER BY HAND DEVICES OR BY DRONES OR BY SATELLITE IMAGERY. TALKING ABOUT THE COMPETITION, IT DOES PHENOTYPING BY PULLING FROM THE GROUND WHICH IS NOT SUFFICIENT FOR COMPLETE PHENOTYPING. HUMANS TAKING MEASUREMENTS AND SOME OF THE TRAITS ARE BEYOND HUMAN CAPABILITY. IT PROVIDES ACCURATE COMPLETELY AUTOMATIC SOLUTIONS. WITHIN THE SEED INDUSTRY, THE MARKET SIZE IS MORE THAN $10 BILLION. IN FACT, LAST YEAR A MULTI-BILLION DOLLAR SEED COMPANY WHERE THEY HAVE TO MEASURE THE QUALITY OF MILLIONS OF PLANTS. THE INITIAL TARGET IS FOR THE SEED COMPANIES. IT IS ALSO USED BY THE FOOD INDUSTRY TO MEASURE THE QUALITY PARAMETERS AND THE AI INDUSTRY IN THIS SECTOR IS MOVING 42% FROM 2017 TO 2022. WE HAVE ALREADY ON BOARDED THE LARGEST SEED COMPANIES WHICH CONTROL 40% OF THE GLOBAL MARKET SHARE. DUPONT IS ONE OF THEM. WE ARE ALREADY LEARNING WITH COMPANIES. WE ARE IN THE TALKS WITH MICROSOFT FOR POTENTIAL PARTNERSHIP. ON THE BUSINESS MODEL, WE ARE PROCESSED BY TECHNOLOGY. WE HAVE EXPERIENCED COMPUTER VISION AND AI SPECIALISTS AS ACCORDING TO GOOGLE WITH MORE THAN 50 YEARS OF COMBINED EXPERIENCE. WE ALSO HAVE MENTORSHIPS FROM BILLION DOLLAR COMPANIES. SO SEED PROCESSING COMPANIES AND FOOD MANUFACTURING COMPANIES LOOKING FOR ENABLED QUALITY ASSESSMENT. GO THERE AND SAVE MILLIONS OF DOLLARS. THANK YOU.>>JUDGES.>>SO HOW MUCH, IF I CAN GO FIRST, HOW MUCH DO YOU NEED TO DO TO TRAIN YOUR AI ACROSS ALL OF THE SEED TYPES AND ACROSS THE DISEASE TYPES? I’M SURE THERE’S A MORE TECHNICAL TERM BUT I HAVE NO IDEA WHAT I’M TALKING ABOUT. >>IT STATES THOUSANDS OF IMAGES TO BUILD MODELS, BUT WE TAKE LESS THAN 50 TO BUILD MODELS. THIS IS A SUPER ADVANTAGE TO US. IT ALLOWS US TO COLLECT THOUSANDS FROM THE FIELDS AND BECOME A SEPARATE PROJECT FOR THESE COMPANIES. THIS IS ONE OF THE REASONS THE COMPANIES WANT TO ENTERTAIN WITH US.>>IT’S IMPRESSIVE. >>CAN YOU TALK A LITTLE BIT ABOUT WHAT ARE THE REASONS WHY SOME OF THE CUSTOMERS THAT YOU’VE TRIED TO CLOSE HAVE SAID NO? WHAT ARE THE THINGS THEY WANT THAT YOU HAVEN’T BEEN ABLE TO OFFER? IT SEEMS LIKE THE TRACTION IS GREAT SO FAR. I’M CURIOUS WHY PEOPLE SAID NO.>>MOST OF THE COMPANIES WITH WHOM WE HAVE ALREADY DONE PILOTS, WE HAVE 100% SUCCESS RATIO FROM PILOT TO OUR PAYING CLIENTS. THE COMPANIES WHO ARE BASICALLY SAYING NO. THEY ARE BASICALLY OPERATING AT A SMALL SCALE. THEY CAN EASILY EMPLOY CHEAP HUMAN LABOR TO DO THAT STUFF. THAT IS THE ONLY REASON THEY DON’T WANT TO USE THAT TECHNOLOGY. BUT OTHERWISE WE HAVEN’T REALLY FACED THAT SORT OF THING. >>HOW FRAGMENTED IS THE DIFFERENT CUSTOMERS? ARE THERE A FEW BIG PLAYERS IN THE MARKET AND THAT’S IT?>>THERE ARE MEDIUM LEVEL COMPANIES AND WE HAVE DONE PILOTS. THEN THERE ARE SMALL COMPANIES. WE ARE NOT TARGETING THEM.>>HOW MANY DIFFERENT CROPS DO YOU OFFER RIGHT NOW? WE SAW A RISE IN THE EXAMPLE AND I THINK A FEW OTHERS, SO HOW MANY DO YOU HAVE NOW AND HOW LONG DOES IT TAKE TO ON BOARD MORE AND TO GO BROADER IN YOUR ASSORTMENT?>>SO IT DOESN’T REALLY TAKE US ANY TIME TO CREATE A MODEL. WITHIN A WEEK WE CAN MAKE A SO COLLUSION WITH ANYBODY FOR A CROP. SO AS THE DEMAND STEMS FROM THE USER, WE TRAIN OUR MODELS. THAT’S NOT REALLY AN ISSUE. WE HAVE A COUPLE CROPS BASED ON THE DEMAND THAT WE HAVE.>>ISN’T ONE OF THE BIGGEST CHALLENGES IN AG TECH AI THE APPLICATION OF THE MODELS ON VARIABLE SOIL TYPES? YOU MAKE A MODEL AND THEN THE SOIL AND THE ENVIRONMENT’S CONSTANTLY CHANGING? SO WHAT IS THE UTILITY AFTER YOU’VE PHENOTYPED A PLANT? WHAT ENDS UP BEING THE REAL SOLUTION?>>THE PLANT READING, THIS IS THE PROCESS WHICH THE COMPANY HAS NEW I DEAL SEEDS. PHENOTYPING IS MEASURING DIFFERENT BALANCES. MOST OF THE COMPANY SYSTEM DOING IT MANUALLY. WE ARE HELPING THEM TO AUTO MATE AND HELPING THEM BECOME MORE EFFICIENT AND OPTIMIZE. THE LAST COMPANY USED THE PHENO TYPING FROM TWO DAYS. THAT’S THE AMOUNT OF SCALE WE’RE TALKING ABOUT. >>SO THIS IS CONNECTED TO A SOFTWARE. THIS HELPS THE COMPANIES. PLANTS ARE ALL ABOUT THE SEASON MAKING. WHICH DO WE NEED TO BREED NOW SO IT HAS ALL THE DESIRED TRAIT. >>WHAT IS THE PRICE POINT TO SOMEONE LIKE DUPONT?>>IT’S A PRODUCT BASED ON THE DEMAND OF THE CLIENT, SO THERE CAN BE A NUMBER OF DIFFERENT TRAITS. SO THE PRICE WOULD VARY FROM $40,000. IT CAN GO UP TO MILLIONS OF DOLLARS DEPENDING UPON THE TRAIT. >>WE HAVE DIFFERENT PILOTS FOR DIFFERENT DIVISIONS. LIKE THE SOIL DIVISION, PACKAGING DIVISION.>>SO OUR TECHNOLOGY HAS APPLICATIONS WITHIN THE SAME SEED COMPANY. >>DO YOU NEED TO PROVE ANY SORT OF R OOI WHEN YOU’RE SELLING? HOW DO THEY TEST IT BEFORE THEY ROLL IT OUT? WHAT DOES A PROOF OF CONCEPT LOOK LIKE?>>BASICALLY WE DO A PILOT WITH THEM. THE PILOT LASTS FROM TEN DAYS TO ONE MONTH. GIVING THAT PILOT THE EFFICIENCY. SO AS SHE MENTIONED WITH ONE OF HER OTHER CLIENTS, THEY HAVE TWO DAYS FOR THE PRODUCT. >>WE HAVE ALMOST RESUMED 99% ACCURACY. >>WHAT IS IT SPECIFICALLY ABOUT THE TECHNOLOGY THAT ALLOWS TO TRAIN ON SUCH A SMALL DATA SET? WHICH THEN DOESN’T LEAVE THE PROBLEM AND MAKE IT COPY CAT?>>THAT’S A REALLY GOOD QUESTION. THAT IS ONE OF OUR SECRETS. WE ARE ABLE TO HANDLE UNCERTAINTIES IN THE MODEL IN BETTER WAYS THAT LESSEN THE IMAGES, MAKING IT MORE ROBUST AND LESS DATA HUNGRY. I’M TELLING YOU THIS IS VERY IMPORTANT FOR COMPANIES BECAUSE THEY DON’T HAVE SUCH A HUGE AMOUNT. >>AND IS THAT PATENTED, THE TECHNOLOGY BEHIND IT, OR WHAT’S THE — >>WE’RE IN THE PROCESS OF APPLYING TO THAT.>>WHERE IS THE ENGINEERING TEAM OR WHAT’S THE BACKGROUND?>>SO I’M FROM AI BACKGROUND.>>AND I HANDLE THE BUSINESS AND STRATEGY PART.>>ONE MORE ROUND OF APPLAUSE. NEXT UP, WE HAVE RELAY. PRESENTING FOR RELAY ARE MICHAEL HEARN AND MAX. COME ON OUT.>>CRYPTO PRICES ARE TANKING. A BLOCK CHAIN ADOPTION IS ON THE RISE. BRINGING COMPANIES ON THE BLOCK CHAIN IS EXPECTED TO BE A $60 BILLION MARKET WITHIN THE NEXT FIVE YEARS. COMPANIES WILL SWITCH FTO DECENTRALIZED SURFACES. BRINGING COMPANIES ON THE BLOCK CHAIN — COMPANIES ADOPT BLOCK CHAIN BECAUSE IT IS — BECAUSE THERE’S NO OTHER PLATFORM. IT ALLOWS FOR SUCH AN EFFICIENT WAY TO MANAGE VALUE. AND THAT IS AFFECTING THE COMPANY’S BOTTOM LINE. BY ADOPTING BLOCK CHAIN, COMPANIES CAN ALSO INCREASE HOW THEY COLLECT AND ACQUIRE DATA. DATA IS THE LIFE BLOOD OF MANY COMPANIES. BUT INSTEAD OF HAVING TO COLLECT IT YOURSELF OR PURCHASE IT FROM SOMEONE, YOU CAN NOW CROWD SOURCE IT. CROWD SOURCING DATA MEANS THAT THE COMPANY ORDERS THE DATA AND THEN IS FULFILLED BY COMPETING DATA PROVIDERS WHO WRITE THE DATA DIRECTLY INTO THE COMPANY’S DATABASE. FOR CROWD SOURCING DATE TARKS — DATEA, YOU DO NOT NEED CROW SOURCES DATA. IT REQUIRES INFRASTRUCTURE. NOT EVERYONE COMPANY IS ABLE TO BUILD. THEY MAY REQUIRE BLOCK CHAIN DEVELOPERS THEY DON’T HAVE. THEY MAY REQUIRE MORE BUDGET. THAT’S ALL REASONS WHY CROWD SOURCE SYSTEM DIFFICULT FOR COMPANIES TO ADOPT. ENTER RELAY. RELAY IS AN OPEN SOURCE FRAMEWORK THAT TURNS AN EMPTY DATABASE INTO A CROWD SOURCED DATA SET. WITH RELAY, WE ARE BUILDING BRAIN TREE FOR THE NEW DATA ECONOMY. LET’S SWITCH TO A DEMO AND SEE HOW SIMPLE IT IS TO CROWD SOURCE DATA WITH RELAY. FOR THIS DEMO, WE ASSUME THAT WE ARE INVESTMENT FUND AND WE WOULD LIKE TO HAVE SUSTAIN ABILITY DATA WHILE PUBLICLY LIST A COMPANY TO SEE IF IT CAN GENERATE ALPHA. LET’S START A NEW PROJECT. WE LAY THE FRAMEWORK AND SEE THIS FROM SCRATCH. WE FIRST SELECT A DATA STORAGE. THE FIRST THING WE DO IS WE INITIALIZE A DATA STORAGE. HERE THIS IS WHERE WE WANT THE DATA TO BE DELIVERED INTO. THIS CAN BE ALMOST ANY DATABASE. THIS CAN BE A DATA WAREHOUSE. THIS CAN BE A SLACK CHANNEL IF YOU WANT IT TO BE. BUT WE’LL GO WITH NEAR FOR CHAIN. THE NEXT THING WE SELECT IS A LEDGER STORAGE. THIS IS WHICH WE WILL REWARD THE DATA PROVIDERS. AGAIN, THIS CAN BE ALMOST ANY LEDGER SOLUTION, BUT HERE WE’LL GO WITH ETHERIUM. LASTLY WE ARE SPECIFYING WHAT KIND OF DATA WE WOULD LIKE TO BE RECEIVING. FOR THIS DEMO, WE ALREADY PROVIDED THE TEMPLATE WHICH WE CAN SEE HERE. NOW, WE CAN SWITCH TO THE NEXT WINDOW AND SEE THAT THE RELAY FRAMEWORK DEPLOYED OUR DATABASE AND CONNECTED OUR DATABASE AND DEPLOYED OUR SMART CONTRACTS WE’RE REWARDING AND IT STARTED THE RELAY INSTANCE WHICH IS MANAGING EVERYTHING. IT MANAGES THE DATA QUALITY AS WELL AS THE PAYOUTS. THE NEXT WINDOW WHERE WE SEE THE DATA NOW COMING IN INTO OUR DATABASE THAT WE JUST REQUESTED. WE HAVE TWO DATA STREAMS AND THESE DATA STREAMS CAN BE PROVIDED BY ALMOST ANYONE. FOR EXAMPLE, THESE COULD BE UNDERGRAD COLLEGE STUDENTS WHO ADAPT TO PROVIDE US WITH THE DATA AND MAKE SOME MONEY. HERE WE SEE HOW MUCH REWARD THEY RECEIVED FOR DOING THE JOB. WE SEE THIS IS REWARDED ALMOST TWICE AS MUCH AS THE BOTTOM ONE. THE UPPER ONE IS PROVIDING US WITH MORE AND HIGHER QUALITY DATA. BEFORE BLOCK CHAIN, CROWD SOURCING DATA WAS IMPOSSIBLE BECAUSE WITH FIAT WE CANNOT INCENTIVIZE AND REWARD PEOPLE IN THE LIGHT OF STRONG INFORMATION ASYMMETRY AS WE HAVE IT HERE. NOW THAT WE HAVE BLOCK CHAIN, WE CREATED WITH RELAY AND ENABLE DATA STRUCTURE IS THAT IS SIMPLE AND ANYONE CAN USE TO RECEIVE AND REQUEST DATA INTO ALMOST ANY DATABASE VIA ALMOST ANY LEDGER. WE SEE RELAY AND THE MARKET OF BLOCK CHAIN SERVICES THAT RIGHT NOW IS A $700 MILLION MARKET BUT EXPECTED TO GROW TO ALMOST 100 X WITHIN THE NEXT FIVE YEARS AND IT IS CROSS SECTOR. IT IS GOING FROM ENERGY TO FINANCE TO CONSUMERS. AND COMPETITORS. WE HAVE COMPETITORS. COMPETITORS ARE COMPUTABLE WHO ARE ABOUT TO ENTER THE SPACE, BUT WE ARE AHEAD WITH A WORKING PRODUCT AND PAYING CUSTOMERS. WE PIVOTED RECENTLY TO NOW FULLY FOCUS ON OUR CROWD SOURCE FRAMEWORK. RIGHT NOW WE’RE ON BOARDING TWO NEW PAYING CUSTOMERS A MONTH IN THE FINANCE AND THE MARKET SPACE. WE EXPECT THOSE NUMBERS TO DOUBLE IN Q 1. WE’RE OPERATING AS A SERVICE BUSINESS RIGHT NOW. CHARGING HALF OF THE PRICE THAT COMPANIES WOULD NEED TO PAY IF THEY BILL IT ALL THEMSELVES WHICH GIVES US LOW FIVE TO LOW SIX FIGURE DEALS. AND WE USUALLY DELIVER WORKING SOLUTIONS WITHIN DAYS FOR THOSE COMPANIES. BUT WE ALSO ARE EXPLORING SOFTWARE LICENSES, PLAT WEAR MALLS AND VENTURE BUILDING. IF YOUR COMPANY NEEDS DATA AND YOU’RE THINKING ABOUT COLLECTING THE DATA YOURSELF OR PURCHASING A DATA SET OR DATA ACCESS, THEN GO TO RELAY.COM AND CROWD SOURCE THAT DATA SET. THANK YOU.>>JUDGES. >>I’LL GO FIRST. I JUST WANTED TO SAY WHY DO YOU NEED TO BLOCK CHAIN? CAN’T YOU JUST HAVE A NORMAL LET’S SAY LEGACY IN INCENTIVIZIZATION METHOD?>>FOR USING BLOCK CHAIN YOU WANT TO DO SOMETHING WITH MONETARY VALUE ATTACHED TO IT AND FOR THAT BLOCK CHAIN IS ONE OF THE CHEAPEST WAYS FOR A COMPANY TO INTEGRATE IT VERSUS GETTING A BANKING LICENSE, MANAGING THE BALANCES, PROVIDING COMMUNITY MEMBERS THEMSELVES. BLOCK CHAIN REALLY IS A VIABLE SOLUTION. >>SO SIMPLIFICATION. >>YEAH. >>WHAT WOULD YOU NEED A BANKING LICENSE FOR? IF YOU LOOK AT HOW DO MARKET RESEARCH COMPANIES INCENTIVIZE END USERS, THEY GIVE THEM CASH BACK OR WHATEVER AND THERE ARE OTHER FORMS THAT ARE ALREADY WORKING.>>THAT WAS, IF YOU WANT TO REALLY USE BALANCES, YES, THERE ARE OTHER TRADITIONAL SOFTWARE SERVICE COMPANIES, BUT IT HAS TRADITIONALLY BEEN SHOWN OR OUR EXPERIENCE FROM CUSTOMERS HAS BEEN THAT THE TRUST OF THE COMMUNITY MEMBERS IS PRETTY LOW AND WILL I TWACTUALLY BE ABLE T EXCHANGE MONETARY VALUE? YOU CAN TRADE ON A FREE MARKET AND IN THE END EXCHANGE FOR REAL CASH?>>SO I’M ACTUALLY INVESTED, BELIEVE IT OR NOT, IN SOMETHING THAT IS ADJACENT. I’M AN INVESTOR IN TRUE STORY. I THINK THERE’S SOMETHING HERE. WHAT DATA SETS DO YOU THINK THIS IS MOST USE FUL FOR?>>I WAS WORKING BEFORE RELAY AT A VENTURE CAPITAL FIM WRM WHERE TRIED TO PREDICT THE STARTUPS. THERE WASN’T ANY DATA AVAILABLE FOR STARTUPS AND THEIR FOUNDERS. WE COULDN’T PURCHASE IT. IT WAS DIFFICULT TO SCRAPE IT AND TO COLLECT IT AND WE ALSO TRIED TO HIRE INTERNS. NONE OF THOSE SOLUTIONS WORKED FOR THE SCALE THAT WE WERE INTERESTED IN. AND SO THE PROJECT FAILED BECAUSE OF THE ACCESS TO DATA. I THINK IN FINANCE WE SEE ESPECIALLY POTENTIALLY WHEN YOU DO SOME STUFF, THIS COULD BE REALLY, REALLY INTERESTING. BUT WE SEE IN THE BLOCK CHAIN SPACE ALSO DOING THIS FOR ART AND SUSTAINABILITY DATA AND MANY OTHER THINGS.>>AND WHERE ARE YOUR TOKENS TRADING? WHAT EXCHANGES?>>WE DON’T HAVE AN ISSUE OURSELF. WE ARE ALSO NOT BUILDING OUR OWN. WE ARE HELPING COMPANIES LIKE TRUE STORY ACTUALLY BUILD THOSE PROTOCOLS. >>TRUE STORY SPECIFICALLY?>>NO, NOT TRUE STORY SPECIFICALLY. >>OKAY.>>AND WHO ARE YOU USUALLY SELLING TO?>>IF YOU GO TO A CUSTOMER, THE PRODUCT IS MORE WITH A DEVELOPER FROM THEM, BUT I ASSUME THE SALE GOES MORE TOWARDS A BUSINESS OR COMMERCIAL PERSON. WHAT’S YOUR ENTRY POINT IF YOU WANT TO MAKE A SALE AND THEN HOW DOES IT GO DOWN IN THE ORGANIZATION?>>RIGHT NOW WE’RE EXPLORING FINANCE. THE CLIENTS WE CAN’T DISCLOSE, BUT IT’S USUALLY COMPANIES THAT WANT TO GET A DATA HATCH OR INFORMATION HATCH. THE SECOND IS CREATION MARKET SPACE. HERE IT IS ABOUT DEFINING DATA STANDARDS. SO FOR EXAMPLE IF YOU’RE TALKING TO COLONY, THEY HAVE SIMILAR DATA PROPERTIES AND THE DE DECENTRALIZED MANAGEMENT SPACE OF PEOPLE. YOU WANT TO HAVE STANDARDS AND THAT IS SOMETHING WE’RE EXPLORING AS WELL. >>HOW DOES THIS BECOME ANYTHING OTHER THAN A RACE TO THE BOTTOM WITH REGARDS TO THE KIND OF PRICES THAT YOU GUYS WILL PAY OUT FOR DATA IN THE LONG RUN WITH OTHER PEOPLE ENTERING THE MARKET?>>WE SEE FIRST OURSELVES AS A FRAMEWORK. THIS IS COMPLETELY FREE. IN THE LONG TERM WE MAY PROVIDE A NETWORK THROUGH WHICH DATA PROVIDER PROVIDERS CAN COME ON AND PROVIDE VARIOUS CLIENTS. HERE IT IS EXPECTED A RACE TO THE BOTTOM. THIS IS NOT OUR PROBLEM. THIS IS A TOKEN OF THE COMPANY. THIS IS ESSENTIALLY THE BENEFIT OF WHY IT’S SO MUCH CHEAPER THAN CROWD SOURCE DATA OR COLLECT IT ITSELF THAN PURCHASE A DATA SET.>>WHAT DO YOU THINK THE LONG TERM ENDURING USE CASES ARE IF YOU THINK ABOUT? IS IT FINANCE? IS IT ONLY FINANCE? WHAT DO YOU THINK WHERE YOU’LL REALLY BE ABLE TO CREATE SOME SORT OF A MOLD?>>I ALSO THINK THAT WE HAVE NOT EXPLORED THAT RIGHT NOW, BUT WE THINK THAT EVERY COMPANY NEEDS ACCESS TO DATA OR OTHER STUFF THAT YOU POTENTIALLY WANT TO CROWD SOURCE. COMPANIES IN THAT SPACE HERE IN GERMANY, FOR EXAMPLE, INSTEAD OF HIRING AN ANALYST THAT SPENDS A WEEK FINDING THOSE COMPANIES.>>HAVE YOU ANY SENSE OF COST EFFICIENCY, HOW THEY DO IT TODAY VERSUS BACK TO THE KIND OF — DO YOU NEED BLOCK CHAIN TO DO THIS?>>WE’RE ALSO REALLY INTERESTED IN HOW THIS CAN WORK OUT. ESPECIALLY IF THE DATA IS ALREADY AVAILABLE. ESPECIALLY IF SOMEONE HAS A DATA STORE OR DATA SET OF COMPANIES. IT CAN BE PROVIDED SUPER, SUPER CHEAP WITHIN SECONDS. BECAUSE HE CAN DISTRIBUTE IT MANY, MANY TIMES, ESPECIALLY IF THERE’S A MARKET OF MANY DATA PROVIDERS. THOSE COSTS WILL DRAMATICALLY GO DOWN. I THINK THERE’S — I MEAN, IT CAN BE REALLY, REALLY A LOT CH CHEAPER THAN IF YOU HIRE AN ANALYST. >>ALSO ON TO THAT, DO BLOCK CHAIN POWER IS COMPLETELY OPTIONAL. YESTERDAY AMAZON ANNOUNCED A PRODUCT FOR A NONBLOCK CHAIN WHICH COULD CREATE ENTERPRISE. >>ALL RIGHT. GIVE IT UP FOR RELAY.>>THANK YOU.>>>THE MOST TIMES VETTED FROM THE SCREENS ARE SOCIAL MEDIA, BECAUSE PICTURE, VIDEO, AND TASTE ARE SCREEN BASED FORMATS. IT’S THE ONLY FORMAT WE CAN CONSUME WITHOUT A SCREEN. BUT THE MOST SOCIAL MEDIA THAT WE CONSUME TODAY IS BEING PRODUCED IN 24 HOURS. THERE’S NO MODERN. MOVE TO DEMO. USERS CONSUME A CONTINUOUS STREAM OF BITE SIZED ONE MINUTE AUDIO CONTENT IN A STORY LIKE FORMAT. USERS FOLLOW BRANDS, FRIENDS AND CELEBRITIES CREATING THEIR OWN PERSONAL AUDIO FEED. EVERY 24 HOURS YOUR FEED RESETS. THIS WAY USERS CONSUME FRESH AND UP TO DATE CONTENT EVERY DAY. THIS IS YOUR FEED. YOUR FEED CONSISTS OF THE PEOPLE YOU FOLLOW. AND LET’S SEE WHAT OUR INTERNAL PRODUCTION KOO FACTS HAVE TO SAY. >>THEY SLEEP UP TO 18 HOURS PER DAY. THEIR DIET IS HIGH IN TOXINS AND VERY LOW IN NUTRITION AND THEY SMELL LIKE COUGH DROPS. DID THE KOAL ADJUST BECOME YOUR NEW SPIRIT ANIMAL? LET’S HOPE NOT. >>MINIMIZE THE PLAYER AND TOSSED IT AWAY SO HE CAN EXPLORE OTHER PARTS OF THE APPS. LIKE OUR HASHTAGS. IT’S OUR WAY OF CONTENT ON THE PLATFORM AND THEY CAN BE ANYTHING FROM TOPICS LIKE SPORTS OR CHALLENGES LIKE RAP BATTLE OR ACHAPELLA APPROXIMATELY BEING NEW ON A SOCIAL NET YORK, YOU RARELY HAVE ANYTHING TO CONSUME. THIS IS WHY WE HAVE CREATED THE DAILY HOST. THE DAILY HOST IS A KNOWN CONCENTRATE OR THAT ANYONE CAN LISTEN INTO. THIS WAY USERS CAN FIND NEW CONTENT AND PEOPLE TO FOLLOW ON THE PLATFORM. BUT KOO IS ALSO ABOUT CREATING YOUR OWN CONTENT WHICH YOU CAN DO IN THE RECORDER. AND OF COURSE WE LOVE YOUR VOICE. BUT TO SPICE THINGS UP, YOU CAN ADD SOME STICKERS LIKE A DRUM ROLL. OR A LAUGHTER. LET’S SEE IF MILES CAN CREATE A KOO. AND THE CUSTOMERS MIGHT BE MEN, BUT WE FOCUS ON THEIR PARTNERS. SO WE DO DIRECT-TO-CONSUMER. WE TARGET MEN IN PROFESSIONAL SERVICES. CONSULTANTS, LAWYERS, BANKERS. I KNOW THIS FIELD VERY WELL. THESE PEOPLE WITH HIGH SALARIES, HIGH STRESS AND, YES, THEY WANT TO HAVE CHILDREN BUT MAYBE NOT RIGHT NOW. MORE INTERESTINGLY, WE TARGET TO THEIR PARTNERS. WE KNOW WOMEN ARE THE CHIEF MEDICAL OFFICERS OF THE HOUSEHOLD. THAT’S WHY A LOT OF OUR TARGETING IS TO THE FEMALE PARTNERS OF MEN WHO COMPARE THIS TO EGG FREEZING WHICH IS COSTLY, $10,000. IT’S EXPENSIVE, IT REQUIRES SURGERY AND IT REQUIRES WEEKS OF HORMONE THERAPY. SO THESE ARE THE PEOPLE WHO WILL EVENTUALLY CONVINCE MEN THAT, YES, YOU SHOULD BE THINKING ABOUT YOUR FERTILITY, NOT JUST ME. FINALLY, THERE’S 250 COMPANIES IN THE UNITED STATES THAT ALREADY OFFER FERTILITY BENEFITS. NOW, LEGACY WILL SOMEDAY BE PART OF THOSE EMPLOYEE BENEFITS AND OFFER THOSE FERTILITY BENEFITS. IT WILL BE OFFERED FROM ALL FORWARD-LOOKING COMPANIES. WE DO HAVE SOME INDIRECT COMPETITORS — SPERM BANKS, VERY FOCUSED ON DONATION. CLINICS, TERRIBLE CONSUMER EXPERIENCE AND YOU HAVE TO GO TO THE CLINIC. TRUST ME, NOT FUN. AND WE HAVE SOME COMPANIES THAT DO FERTILITY TESTING. INCREDIBLY EMASCULATING. NOW, LOOK, WE’RE TESTING TWO MODELS RIGHT NOW, ONE IS BUNDLED. ANALYSIS AND FREEZING TOGETHER. ONE IS UNBUNDLED. JUST THE ANALYSIS. THIS IS ALLOWING US TO TEST WHICH MODEL WILL WORK BETTER. ULTIMATELY, WE ARE GOING TO BE LIKE 23 AND ME, HIMS AND ROMAN THAT TOOK TOPICS THAT YOU HAVE NEVER THOUGHT ABOUT BEFORE, GENETIC ANALYSIS, HAIR LOSS AND WHEN WAS THE LAST TIME YOU TALKED ABOUT ERECTILE DYSFUNCTION IN PUBLIC? BUT THESE ARE COMPANIES THAT CHANGE THEIR INDUSTRIES. I SAY THIS NOT JUST BECAUSE I LOVE SPERM-FREEZING JOKES, BUT BECAUSE IN THE FUTURE LEGACY WILL BE THE NORM. THANK YOU. [ APPLAUSE ]>>JUDGES?>>IS THIS — THE FIRST QUESTION THAT COMES INTO OUR MIND IS PRIVACY SO HOW DO YOU SELL THAT?>>YOU ARE ASKING ONE OF MY FAVORITE QUESTIONS IN THE WORLD BECAUSE I LIVE AND BREATHE PRIVACY. I THINK ONE OF THE THINGS MOST COMPANIES HAVE DONE SO WRONG, S TAKING CONSUMER DATA, REPACKAGING IT AND SELLING IT TO PHARMA COMPANIES AND THEN SELLING IT BACK TO US. SO PRIVACY IS ONE OF OUR CORE VALUES. IT’S IS THE VERY FIRST CORE VALUE. WE TAKE PREVIOUSLY EXTREMELY SERIOUSLY. >>BUT WHAT IS THE SERVICE AROUND IT? LIKE WHEN YOU GET YOUR RESULTS IS IT JUST A PIECE OF PAPER? LIKE AN E-MAIL THAT TELLS YOU, HEY YOUR SPERM IS BAD OR DOES IT MAKE SENSE — >>I LIKE THAT QUESTION BECAUSE WHEN YOU GO TO A CLINIC THEY GIVE YOU A REPORT A MAKES NO MAL SENSE. YOUR NORMAL RAGE IS 925 AND YOUR RANGE IS 125. IS THAT GOOD OR BAD? SO WE TURN THOSE INTO SOMETHING YOU CAN UNDERSTAND. WE TELL YOU YOUR MOTELTY WHICH IS WHAT PERCENTAGE OF SPERM IS SWIMMING FORWARD. YOUR MOTILITY IS GOOD. THEN WE GIVE PERSONALIZED LIFE-STYLE RECOMMENDATIONS. WE’VE STUDIED OVER 100 STUDIES, TAKEN THAT DATA AND USE THAT TO TELL YOU, HEY, IF YOU STOP SMOKING, BECAUSE YOU TOLD US YOU SMOKE FIVE TIMES A DAY, IT WILL PROBABLY BOOST YOUR QUALITY BY X PERCENT. >>DO YOU NEED ANY KIND OF MEDICAL CERTIFICATION? ARE YOU A MEDICAL DEVICE? DO YOU NEED A TELEMEDICINE INTERACTION AT ALL?>>NO. SO WE AS LEGACY DO NOT. WE PARTNER WITH CLINICS THAT ARE FULLY CERTIFIED, OF COURSE, UNDER THE NECESSARY STATE LAW, COUNTRY LAW BUT THEY HAVE THE CERTIFICATION TO BE CONDUCTING THE TESTS OF THE ASSETS. >>CAN YOU GIVE ADVICE WITHOUT THAT?>>YES. >>WHY NOW? LIKE, WHAT CHANGED TO MAKE THIS POSSIBLE?>>JUNE 25, 2017. I’VE HAD THIS IDEA FOR YEARS BUT I KNEW IT WAS MISSING THAT ONE THING. BECAUSE HOW DO YOU TELL A GUY, HEY, BY THE WAY, HAVE YOU EVER THOUGHT ABOUT YOUR FERTILITY. A METASTUDY CAME OUT. 185 DIFFERENT STUDIES ON MALE FERTILITY CAME OUT AND THAT’S WHERE I GOT THAT STATISTIC. A 50% TO 60% DECLINE IN THE FERTILITY OF WESTERN MEN. YOU’LL SEE OVER THE LAST SIX MONTHS, THE “NEW YORK TIMES” WROTE ABOUT IT, TECH CRUNCH WROTE ABOUT IT, FORBES, GQ, GUARDIAN, INDEPENDENT, LIST GOES ON. >>SO WAS IT PREVIOUSLY CONSUMERS DIDN’T KNOW THERE WAS A PROBLEM SO THERE WAS NO DEMAND?>>YES. THERE WERE A LOT OF PIECEMEAL PIECES OF DATA AND I HAD KNOWN THE FIELD WELL ENOUGH TO KNOW IT WAS AN ISSUE BUT IT’S DIFFICULT TO COMMUNITY BUT SMOKE WILLING AFFECT YOU BY 3% AND DRINKING BY 5%, YOU SHOULD DROP YOUR COKE HABIT. >>DON’T GO INTO SAUNAS.>>ACTUALLY, YES, UNLESS YOU DON’T WANT TO HAVE CHILDREN IN WHICH CASE DO GO INTO SAUNAS. >>I’M NOT INVESTED IN A COMPETITOR TO THIS. I’VE GOT SOME FEEDBACK ON YOUR SETUP OF THE PROBLEM. YES THERE’S A DECLINE IN MALE FERTILITY BUT THE DECLINE IN BIRTHRATE IS BECAUSE OF CONTRACEPTION AND WOMEN’S EDUCATION AND WOMEN’S PARTICIPATION IN THE WORK FORCE. SO PEOPLE PREDICT THAT THE NUMBER OF CHILDREN 15 YEARS FROM NOW WILL BE STATIC AND MANY PEOPLE ARGUE THIS IS A GOOD THING. SO DO YOU THINK THAT WE SHOULD BE BRINGING MORE PEOPLE INTO THE WORLD IN THE WEST?>>I THINK ABOUT THIS QUESTION A LOT AND TO GO BACK TO YOUR QUESTION ABOUT PRIVACY, I THINK I WANT TO BUILD AN ETHICAL COMPANY AND THERE’S A REAL QUESTION WHICH IS SHOULD WE BE BRINGING MORE CHILDREN INTO THE WORLD. >>IS THIS EUGENICS? ARE WE JUST BRINGING RICH PEOPLE INTO THE WORLD?>>THREEFOLD. NUMBER ONE ON THE EUGENICS FRONT, WE DON’T DEAL WITH ANYTHING RELATING TO MODIFICATION OF THE SAMPLES THAT ARE FROZEN. NUMBER TWO IS THAT WE — IN TERMS OF BIRTH RATES, THE WAY WE SEE IT IS MOST MEN WON’T NEED TO USE THEIR DEPOSITS. BUT THERE WILL BE MAYBE 1%, 2%, 5% THAT WILL BE DESPERATELY TRYING TO HAVE A CHILD AND WE WILL BE ABLE TO GIVE THEM THAT OPPORTUNITY BACK. SO I DON’T THINK IT WILL SIGNIFICANTLY AFFECT THE BIRTHRATE AND ON YOUR LAST POINT ON SOCIETAL CHANGES, ABSOLUTELY. BUT WE’RE SEEING MORE AND MORE COUPLES HAVING CHILDREN LATER. THE AVERAGE AGE OF A MOTHER FIRST TIME IN NEW YORK OR SAN FRANCISCO IS 30 AND 31. WHAT THAT MEANS IS YOU HAVE OLDER FATHERS, OLDER MOTHERS AND THAT HAS A COMPOUNDING AFFECT ON YOUR ABILITY TO HAVE KIDS.>>WHAT IS YOUR GEOGRAPHIC TARGET MARKET? WHERE ARE YOU STARTING AND HOW DO YOU WANT TO EXPEND BECAUSE I ASSUME REGULATORY WISE IT’S DIFFERENT COUNTRY BY COUNTRY. >>OUR FOCUS IS ON THE UNITED STATES, BUT I SEE A LOT OF POTENTIAL IN TERMS OF REGIONAL EXPANSION. SO THE MIDDLE EAST WHERE I GREW UP, IT’S A VERY SENSITIVE TOPIC BUT ONE THAT IS INCREDIBLY IMPORTANT AND SOME THEORIZE THE MIDDLE EAST HAS THE HIGHEST RATES OF MALE INFERTILITY IN THE WORLD. IN THE PART OF THE WORLD THAT CARES A LOT ABOUT PASSING ON THE FAMILY NAME — AND THAT’S SEXIST, BUT THAT IS THE CASE. IT’S A DEEPLY EMASCULATING COMPONENT WHICH IS WHY PRIVACY IS SO IMPORTANT TO US. IT SHOULD BE A CLIENT’S DECISION TO SHARE THAT THEY’RE A LEGACY CLIENT. >>AND WHERE DO YOU STAND IN YOU LAUNCHED ALREADY?>>WE’VE LAUNCHED. >>AND HOW MANY CUSTOMERS DO YOU HAVE?>>I DON’T WANT TO TALK ABOUT NUMBER OF CUSTOMERS BUT RATHER I WANT TO TALK ABOUT NUMBER OF CONVERSATIONS BECAUSE I HAVE HAD — I’M NOT EXAGGERATING WHEN I SAY OVER A THOUSAND CONVERSATIONS ABOUT MALE FERTILITY ALREADY. THIS IS WHAT I LIVE AND BREATHE — I WON’T SAY EAT AND DRINK BECAUSE THAT WOULD BE STRANGE — BUT WE HAVE A LOT OF INTEREST FROM MEN WHO ARE THINKING ABOUT DOING IT. THE CHALLENGE THAT I FACE — SO IF I THINK ABOUT THE LONGER TERM, WHICH IS HOW DO YOU TURN LEGACY INTO A SOCIAL NORM? SOMETHING YOU DO BY THE TIME YOU TURN 30, THE SAME WAY YOU MIGHT BUY LIFE INSURANCE OR HOUSE INSURANCE, WHATEVER THAT MIGHT BE. AND THIS IS A MULTIMONTH PROCESS. SO WE HAVE A HUGE PIPELINE OF MEN WHO WILL GET TO THIS POINT. >>ISN’T THAT THE KEY IS TO MAKE IT SOMETHING PEOPLE TALK ABOUT? BECAUSE ALL OTHER SUBSCRIPTION BUSINESSES WE’VE BEEN INVOLVED IN, PEOPLE TELL THEIR FRIENDS. THAT’S HOW IT GROWS OTHERWISE THE COST OF MARKETING IS TOO HIGH SO YOU HAVE TO FIGURE OUT HOW TO MAKE THE PRIVACY OF THAT IN ONE WAY POSITIVE BUT ALSO IN ONE WAY SOMETHING THAT YOU WANT TO SHARE. IT’S NOT EASY. >>I’M WORKING ON AN IDEA RIGHT NOW AND MAYBE YOU CAN GIVE FEEDBACK. I WOULD LOVE TO BE ABLE TO CATEGORIZE MEN’S SPERM IF IT’S GOOD QUALITY. SO IF YOU HAVE FAST SWIMMERS, MAYBE YOU’RE THE MICHAEL PHELPS OF SPERM. MAYBE THEY’RE THE USAIN BOLT. AND THIS IS FUNNY AND QUIRKY, BECAUSE OTHERWISE THE BRAND IS SERIOUS. BUT SOMETHING WHERE A GUY MIGHT TELL HIS FRIENDS, DID YOU KNOW I’M THE USAIN BOLT OF SPERM?>>AND ON THAT NOTE, ONE MORE ROUND OF APPLAUSE FOR LEGACY. >>THANK YOU VERY MUCH.>>THAT WRAPS UP THE START OF BATTLEFIELD FOR TODAY. CHECK ON TECH CRUNCH TONIGHT. WE’RE GOING TO BE ANNOUNCING THE FINALISTS. BEFORE WE DO THAT, WE HAVE TO CHOOSE THE FINALISTS. THE JUDGES WILL FOLLOW ME BACKSTAGE AND WE’LL DO THAT RIGHT NOW. BEFORE WE DO, THOUGH, LET’S HEAR IT ONE MORE TIME FOR OUR AWESOME JUDGES. [ APPLAUSE ]>>THANK YOU FOR AN AMAZING DAY ONE. WE HAVE AN AMAZING DAY TWO PLANNED AS WELL AND THERE’S AN AFTERPARTY TONIGHT AT WATERGATE. THE INFORMATION SHOULD BE ON A SCREEN SHORTLY. THERE IT IS AND I HOPE TO GET A TOUCH MORE ENTHUSIASM FROM YOU TOMORROW. I’LL BRING IT AND LAY IT ON THE FLOOR FOR YOU. I DON’T WANT TO FEEL DISAPPOINTED AGAIN. THANKS AGAIN, YOU GUYS ARE GREAT. I LIED.

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2 thoughts on “Live from Disrupt Berlin 2018 Day 1

  1. If I see, startups related to Apple companies are prominent in this event. Hopefully the startup world still shines with events like this.

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