Live from Disrupt SF 2019 Day 3


>>>LADIES AND GENTLEMEN, PLEASE TAKE YOUR SEATS, THE PROGRAM WILL BEGIN AT FIVE MINUTES. >>>LADIES AND GENTLEMEN, PLEASE TAKE YOUR SEATS, THE PROGRAM WILL BEGIN IN FIVE MINUTES. >>>LADIES AND GENTLEMEN, PLEASE SILENCE ON MOBILE DEVICES. THE PROGRAM IS ABOUT TO BEGIN. >>>LADIES AND GENTLEMEN, PLEASE TAKE YOUR SEATS, THE PROGRAM IS ABOUT TO BEGIN. [MUSIC] >>>LADIES AND GENTLEMEN, PLEASE WELCOME TECHCRUNCH EDITOR IN CHIEF . [MUSIC] >>GOOD MORNING, GOOD MORNING, GOOD MORNING. THANK YOU TO THE PEOPLE THAT ARE PAID TO CLAP FOR ME, I APPRECIATE IT WE HAVE A WONDERFUL SHOW FOR YOU, THIS IS DAY THREE. THE MAIN STAGES PACKED. THIS IS GOING TO BE A WONDERFUL THIRD DAY. THERE’S GREAT PROGRAMMING TEAMS THAT HAVE WORKED HARD ALL YEAR TO BRING YOU THE SHOW. I’M REALLY HAPPY ABOUT THE RESPONSE SO FAR. YESTERDAY THE DAY BEFORE WE HAD AMAZING RESPONSES FROM ATTENDEES AND EVERYONE INVOLVED. ONE OF OUR HIGHLIGHTS OF COURSE IS THE BATTLEFIELD FINALS. THEY WERE ANNOUNCED LAST NIGHT, THE COMPANIES WILL COMPETE TODAY TO WIN THE GRAND PRIZE. ALL OF THEM ARE EXCELLENT AND REPRESENT A VARIETY OF DIFFERENT SPACES, INCLUDING FARMING AND ROBOTICS AND HEALTH IN THE CLOUDS. PREPARE FOR INTELLECTUAL WHIPLASH. IT’S ALWAYS NICE TO BE INTRIGUED IT ENTERTAINED AND THEN SEE THE WINTER, THROUGH. THANK YOU FOR BEING HERE. >>LADIES AND GENTLEMEN, PLEASE WELCOME JORDAN. >>WHAT IS UP? HOW ARE YOU FEELING? SO GOOD AND BRIGHT EYED, YOU LOOK AMAZING. [LAUGHTER] >>THANK YOU. A COUPLE HOUSEKEEPING NOTES BEFORE WE GET INTO IT, THERE’S TONS TO SEE ON EXTRA CRUNCH STAGE, THE FIRST THING THIS MORNING IS ACTUALLY HOW TO ITERATE YOUR PRODUCT. MY BUDDY RICHARD HATES THE NAME OF THE PANEL, IT IS SPECIFIC AND TO THE POINT THAT IT IS GOING TO BE WITH THE CPA FROM UBER. WILL HAVE THE CPL — CPA OF TINDR. CHECK THAT OUT, IT WILL BE FUN. WE ARE USING THE SAME OLD HASHTAG, JOIN THE CONVERSATION ON SOCIAL MEDIA. WANT TO MENTION IF YOU HAVEN’T CHECKED IT OUT YET, EXTRA CRUNCH, THE PREMIUM PRODUCT, THERE’S A HUGE DEAL GOING ON, $12 FOR THE 1st YEAR, NORMALLY $150 A YEAR. CHECK THAT OUT. IT’S AN EASY ONE TO GO AND JOIN. LET’S GET STARTED WITH THE FIRST PANEL OF THE DAY. I WOULD LIKE YOU TO GIVE A VERY WARM WELCOME TO THE FOUNDER AND CEO OF LOCKE PARTY, TRACY AND THE COFOUNDER AND CEO OF PROJECTS, ELLEN. AS ALSO MODERATOR, MEGAN. A WARM WELCOME, PLEASE. [MUSIC] >>GOOD MORNING, THANK YOU FOR BEING HERE. THE LAST COUPLE OF YEARS AND TECH HAVE WORKERS SPEAKING OUT AGAINST THEIR EMPLOYERS OR CONTRACTS WITH ICE AND OTHER GOVERNMENT AGENCIES ON TWITTER AND FACEBOOK. ABUSE AND HARASSMENT IS STILL PREVALENT. MEANWHILE, WORKERS HAVE PROTESTED LOW WAGES. IN THE MIDST OF THIS DIVERSITY AND INCLUSION, IT IS STILL MOVING AT A GLACIAL PLACE IN THE INDUSTRY. THERE IS A LOT GOING ON. ELLEN, WHAT IS THE MOST PRESSING ISSUE ON YOUR MIND? >>I THINK IT IS TECH VARGAS, THAT’S I’M GLAD WERE TALKING ABOUT ETHICS TODAY. THEY ARE THINKING ABOUT — IT SEEMS LIKE THEY’RE FOCUSED ON WEALTH GENERATION FOR THEMSELVES AND NOT THINKING ABOUT WHAT’S HAPPENING TO THE PEOPLE AROUND THEM, WHAT IS HAPPENING TO ALL THE PEOPLE THAT THEY ARE RESPONSIBLE FOR. THERE IS NO CORPORATE GOVERNANCE , THERE IS JUSTICE FAILURE OF ALL THESE TECH REMEDIES THAT TAKE INTO ACCOUNT THE CONSEQUENCES OF THEIR PRODUCTS, ACTIONS, LACK OF VALUES. >>WHAT ABOUT FOR YOU? WHAT’S ON YOUR MIND? >>GREAT QUESTION. [LAUGHTER] I AM WORRIED A LOT ABOUT THE IMPACT OF TECHNOLOGY ON SOCIETY. TECH IS SO PERVASIVE EVERYWHERE, AND YET A LOT OF PEOPLE STILL DON’T UNDERSTAND WHAT TECHNOLOGY ACTUALLY IS AND WHAT THE IMPACTS ARE. HOW WE COMMUNICATE WITH EACH OTHER, TECHNOLOGY IS WOVEN INTO THE FABRIC AND ECONOMICS OF SOCIETY. I DON’T THINK WE HAVE ONLY CONTEXTUALIZE THE TECHNOLOGY INDUSTRY. FOR A LONG TIME, IT WAS A SMALL PART OF SOCIETY. THERE WAS A BIT OF THIS ATTITUDE WHERE THE RENEGADES ARE WHERE THE UNDERDOGS AND OUR TECH IS VERY DOMINANT. >>EVEN JUST LOOKING BACK OVER THE LAST YEAR, IN YOUR MIND, WHAT IS ONE OF THE MOST EGREGIOUS EXAMPLES OF A BLATANT LACK OF ETHICS. >>THE EASIEST ONE IS JUUL. YOU HAVE TO LOOK AT THE STAKEHOLDERS, YOU LOOK AT YOUR CUSTOMERS, WHAT ARE YOU DOING TO YOUR CUSTOMERS? HOW ARE YOU THINKING ABOUT THEM. ALL OF A SUDDEN HE WILL BRING IN KIDS AND GET THEM ADDICTED AND THEY ARE YOUR CUSTOMER BASE TO GROW, YOU WILL TARGET THEM THROUGH ADVERTISING, HAVING KIDS TRY TO REEL OTHER KIDS IN, AND THEN YOU’RE GOING TO TELL PEOPLE THAT YOU ARE THIS ETHICAL COMPANY TRYING TO HELP PREVENT PEOPLE FROM SMOKING. I THINK JUUL IS THE EASIEST ONE TO THINK ABOUT RIGHT NOW. >>WHAT ABOUT FOR YOU, TRACY? >>I WOULD THINK THEIR DOSES PRETTY BAD. >>I TOTALLY FORGOT ABOUT THEM. IT SHOWS HOW MUCH HAS HAPPENED. >>IF YOU ARE TRYING TO HELP PEOPLE, AND MISLEADING THEM, POTENTIALLY CAUSING DEATH IF YOU ARE RECOMMENDING THE WRONG THINGS, THAT’S PRETTY BAD. >>FOR SURE. THOSE ARE DEFINITELY EXAMPLES, IT HAS MORE IN TENT WITH IT. WHAT ABOUT THE SCENARIOS WHERE IT IS MORE LIKE ON AN TENDED CONSEQUENCES? MAYBE FACEBOOK POTENTIALLY, YOU COULD ARGUE THEY KNOW WHAT IS HAPPENING ON THE PLATFORM. >>I THINK IT’S LIKE UNCONSCIOUS BIAS, IS IT UNCONSCIOUS ANYMORE? THEY CAN MANIPULATE ELECTIONS FOR THE SAKE OF RINGING IN MORE AD DOLLARS AND EYEBALLS, I THINK IT’S EGREGIOUS. AT THIS POINT, IT’S HARD TO SAY THAT THEY CAN’T CONTROL. GOES TO DATA COLLECTION. WHERE DOES THIS LEAD THEM TO? IT’S LIKE THE PATH INTO WHITE SUPREMACY, THE PATH INTO WHITE NEWS, ALL OF IT IS ON THESE PLATFORMS. IT IS ON YOUTUBE, REDDIT, TWITTER, THEY HAVE TO START BEING HELD ACCOUNTABLE. THESE ARE YOUR ACTIONS, IT IS NOT JUST INTENT. IT IS THE IMPACT OF YOUR ACTIONS AS WELL. >>HE MENTIONED REDDIT. YOU WERE THE FORMER CEO OF REDDIT. HOW LONG WERE YOU CEO? >>UNDER A YEAR. I DISTANCE MYSELF FROM THAT. LET ME GET OUT OF HERE AS FAST AS POSSIBLE. OBVIOUSLY, THERE IS A LOT GOING ON ON REDDIT, GOOD AND BAD. AS CEO OF REDDIT FOR LESS THAN A YEAR, HOW DID YOU KIND OF GRAPPLE WITH CREDITS ROLL IN SOCIETY AND ETHICS? OR MAYBE LACK OF ETHICS THAT EMERGED THERE’S SOME OF THOSE? >>I THINK IT IS EASY TO KIND OF SAY, ALL RIGHT, WE WILL BE THIS FREE-SPEECH PLATFORM. AND IT JUST KIND OF KEEPS YOUR HANDS YOU KNOW AT A SUPERFICIAL LEVEL CLEAN. I’M ALLOWING ANYTHING TO BE MY PLATFORM. THAT WAS THE WAY THAT THE FOUNDERS HAD CREATED IT, THAT WAS WHAT HAPPENED FOR A LONG TIME. THEN YOU STARTED TO SEE MORE AND MORE BAD STUFF HAPPENING AS IT SCALED AND AS IT SCALED, THE BAD STUFF HAPPENING GOT MUCH WORSE. YOU HAD MUCH BIGGER HORDES OF PEOPLE COMING AFTER INDIVIDUALS THERE WERE A FEW THINGS THAT HAPPENED ON THE PLATFORM THAT REALLY GAVE EMPLOYEES PAUSE. ONE OF THEM WAS A PERSON TARGETED BY THE PLATFORM AS THE BOSTON MARATHON BOMBER. YOU KNOW, YOU HAVE THIS RANDOM INNOCENT KID WHO ALL OF A SUDDEN HAS HORDES OF PEOPLE. THAT WAS SOMETHING THAT WAS [INDISCERNIBLE]. THE SECOND ONE WAS THE SLOPE GATE, WHERE PEOPLE STOLE NUDE PHOTOS OFF THE ICLOUD AND THEN STARTED POSTING THEM OF CELEBRITIES. WE SAID, WE ARE POSTING LINKS, WE ARE NOT RESPONSIBLE FOR CONTENT, WE ALLOW WHATEVER PEOPLE WANT TO GO UP THERE, THAT IS FREE-SPEECH. FOR ME, IT WAS REALLY LIKE HEY, WE NEED TO PROTECT OUR USERS PRIVACY, THAT HAS BEEN A CORE VALUE FROM STARTING REDDIT. AS EMPLOYEES, NOBODY WAS COMFORTABLE BEING A PLATFORM WITH THESE NUDE PHOTOS. WE ARE THE ONLY ONES AFTER CERTAIN POINT WE WERE LINKING THE PATHWAY TO GET TO THESE NUDE PHOTOS SO THAT BECAME ALL WE WERE. IN THE BEGINNING, IT WAS LIKE OKAY, WE HAVE PATCHES OF BAD STUFF OVERALL, WE ARE A GOOD SITE. WHEN IT CAME TO SLOPE GATE, WE WERE BAD STUFF YOU CANNOT GET TO THE GOOD STUFF. WE COULD NOT KEEP THE SERVERS RUNNING TO SERVE THE BAD STUFF SO WE STARTED TAKING STEP DOWN. THE IDEA THAT YOU COULD ACTUALLY BE RESPONSIBLE FOR THE CONSEQUENCES OF THIS SPEECH ON YOUR PLATFORM WAS SOMEWHAT NEW TO US. THE IDEA THAT HEY, IF YOU WANT TO FREE SPEECH, EVERYBODY NEEDS TO HAVE A VOICE. WHEN YOU ARE ALLOWING PEOPLE TO RUN PEOPLE OFF THE PLATFORM, THAT IS NOT REALLY FREE SPEECH FOR EVERYONE. >>TRACY, YOU ARE A STARTUP LOG THAT AIMS TO TACKLE ABUSE AND HARASSMENT ON PLATFORMS LIKE REDDIT, FACEBOOK, TWITTER, COULD YOU TALK ABOUT HOW YOU AIM TO DO THAT ? >>WITH BLOCK PARTY WE ARE VERY FOCUSED ON THE END-USER. WE WANTED TO SEE WHAT WOULD BE HELPFUL FOR THESE PEOPLE SO THERE’S BETTER CONTROL OVER WHAT THEY ARE SEEING. BEING ABLE TO HAVE OTHER PEOPLE HELP OUT, BEING ABLE TO COLLECT EVIDENCE BETTER, THERE’S A SET OF THINGS THAT PLATFORMS NEED TO DO TO BE MORE RESPONSIBLE. AT THE SAME TIME, FOR THE INDIVIDUALS, THERE IS MORE CHOICE AND MORE TOOLS NEEDED. I THINK IF WE ARE TALKING THAT THE FREEDOM OF SPEECH THING ON A BIGGER PLATFORM, IF WE’RE TRYING TO HELP USERS HAVE THE FREEDOM TO NOT HEAR THE ABUSIVE CONTENT. AND JUST HAVE MORE CONTROL OVER THE EXPERIENCE. >>WOULD YOU EVER CONSIDER, I KNOW IT’S EARLY DAYS WHICH YOU EVER CONSIDER WORKING MORE CLOSELY WITH THE LIKES OF FACEBOOK AND TWITTER TO ENABLE THEM TO OFFER THE TOOLS TO THEIR USERS? OR FORM A PARTNERSHIP? DO YOU ENVISION YOURSELF — >>THERE IS A VERY BIG ECOSYSTEM HERE. WE NEED TO WORK TOGETHER TO SOLVE THESE PROBLEMS. YOU HAVE VERY SOPHISTICATED BAD ACTORS, WE NEED TO BE COORDINATED IN THE RESPONSIVENESS. >>OKAY, I THINK IT WAS IN THE LAST MONTH. AN ORGANIZATION THAT WE TRUST THAT YOU’RE BOTH PART OF KIND OF ANNOUNCE ITSELF. YOU ARE ALSO COFOUNDING MEMBERS OF PROJECT INCLUDE. ELLEN, YOU ARE AT THE HELM. HOW DO YOU SEE THOSE TWO ORGANIZATIONS WORKING TOGETHER AND SO TO COMPETENT EACH OTHER? >>I THINK WE HAVE DIFFERENT FOCUSES. THIS PROJECT IS VERY MUCH FOCUSED ON HOW TO WE CHANGE TECH STARTUP SO THAT THEY BECOME HEALTHY, DIVERSE, AND IN LUCID COMPANIES. IT IS FOCUSED ON MAKING SURE THAT COMPANIES HAVE DIVERSITY INTERNALLY, AND HAVE INCLUSION INTERNALLY, SO THAT THERE’S EQUITY AND REPRESENTATION AT ALL LEVELS ON ALL FUNCTIONS. IT IS REALLY FOCUSED ON WORKING TO CALL ATTENTION TO THESE ISSUES, GIVE THESE PLATFORMS MORE ATTENTION AND BRING FORCES TO THE CONVERSATION. >>WE TRUST STARTED WITH A LETTER THAT WE COVERED AFTER SERIES OF THREE MASS SHOOTINGS IN A ROW. IT WAS ONE NEARBY AND GILROY. IN MANY CASES, THEIR LINKS BACK TO RADICALIZATION, WHITE NATIONALIST ONLINE. THERE IS CULPABILITY IN THE PLATFORMS THAT ARE ENABLING PEOPLE TO CONNECT IN THESE WAYS AND BECOME RADICALIZED. IT IS NO LONGER JUST ONLINE. THE ONLINE ABUSE IS BAD ENOUGH BUT IT’S TRANSLATING INTO REAL- WORLD HARM, VERY BIG,. IT STARTED OFF WITH THIS LETTER, WE WERE JUST THINKING ABOUT HOW TO WE TAKE A STAND THAT THIS IS NOT OKAY, WE NEED TO START ORGANIZING. PART OF IT IS PUTTING OUT THE STAND, SOME OF IT IS ALL THE DIFFERENT PLAYERS IN THE ECOSYSTEM, WE ARE LOOKING AT THE PEOPLE WHO ARE ALREADY DOING A LOT OF HARD WORK A DIFFERENT COMMUNITIES, HOW DO WE BRING THEM TOGETHER? HOW DO WE GALVANIZE MORE PEOPLE TO TAKE PART. ALSO, THINKING ABOUT WHAT IS OUR INTERACTION WITH POLITICS AND WHAT SORT OF PLATFORMS MIGHT WANT TO ENCOURAGE CLINICAL CANDIDATES TO BE RUNNING ON. >>ELLEN, YOU MENTIONED EARLIER THAT THE NUMBER ONE THING ON YOUR MIND’S VALUES. THROUGH YOUR WORK WITH PROJECT INCLUDE IN WORKING WITH STARTUPS, HOW DO YOU GET THEM TO THINK ABOUT VALUES? AS IT RELATES TO ETHICS, AS IT RELATES TO EVEN THE POTENTIAL UNINTENDED CONSEQUENCES OF THESE PLATFORMS THAT BUILD TECH IS FOCUSED ON? >>I THINK IT IS HARD TO INSTILL VALUES IN PEOPLE FROM OUTSIDE. FOR A LOT OF PEOPLE, THEIR VALUES OR FORM DO DECADES OF EXPERIENCE, THROUGH COMPANIES THAT THIS DARTED WORKING AT AND ROLE MODELS. SO TO COME IN FROM OUTSIDE AS A NOT PROFIT AND SAY THESE ARE YOUR VALUES, YOU NEED TO BE DIVERSE AND INCLUSIVE YOU NEED TO THINK ABOUT ALL OF YOUR EMPLOYEES AND CUSTOMERS, YOU NEED TO THINK ABOUT THE WORLD AT LARGE, IT IS AN UPHILL BATTLE. WE FOCUS ON WORKING WITH COMPANIES WHERE THE CLO’S ARE ORIENTED TOWARD DIVERSITY AND INCLUSION WE CAN HELP THEM. WE CAN HELP THEM BY READING THEM A GROUP OF PEER CEOS TO TALK WITH AND FIGURE OUT WAYS TO EXPERIMENT TO SOLVE A PROBLEM. WE CAN FIGURE OUT WHAT THEIR EMPLOYEE BASE LOOKS LIKE AND THE SENTIMENT LEVELS AND HELP THEM BY PROVIDING INFORMATION AND OTHER DATA AND RECOMMENDATION IS TO HELP THEM MOVE FORWARD. THE IDEA THAT YOU CAN CHANGE SOMEBODY’S VALUES EASILY THROUGH SHORT CONTRACTIONS, I THINK THAT’S HARD. WHEN WE STARTED PROJECT INCLUDE, WE RELY, THIS UNCONSCIOUS BIAS TRAINING FOR 45 MINUTES, THAT WAS THE SOLUTION FOR OTHER POSSIBILITIES. YOU NEED ONGOING TRAININGS, ONGOING INTERACTION, MEASURE AND HOLD PEOPLE ACCOUNTABLE. I THINK A BIG PART OF IT IS TEACHING PEOPLE, IT IS THROUGH CONVERSATIONS LIKE THIS, THROUGH PEOPLE’S BOOKS, THROUGH PEOPLE TELLING STORIES. I THINK WHAT HAS CHANGED THE ENVIRONMENT AND IS STARTING TO CHANGE PEOPLE’S LIVES AS YOU SEE MORE AND MORE PEOPLE PUTTING INCLUSION AS ONE OF THEIR COMPANY VALUES IS BECAUSE PEOPLE ARE STARTING TO TALK ABOUT ALL OF THE PROBLEMS THEY HAVE HAD, THAT HAS MADE THEM LESS LIKELY TO TALK, MAKE THEM QUIT THEIR COMPANIES, TECH. PEOPLE ARE STARTING TO LISTEN. >>PEOPLE HAVE DEFINITELY BEEN SPEAKING OUT MORE AGAINST THEIR COMPANIES. THEY HAVE SHARED THEIR STORIES. ALSO EVEN JUST EMPLOY ACTIVISM. IN LIGHT OF EMPLOYEES AT SOFTWARE STARTUP CHEF, SPEAKING OUT AGAINST COMPANIES WITH ICE. THEY ENDED UP DECIDING NOT TO RENEW THE CONTRACT. WHAT HE THINK IT WILL TAKE FURTHER TECH COMPANIES TO FOLLOW SUIT? >>IF YOU LOOK AT AMAZON, THEY HAVEN’T DONE MUCH. KICK STARTER IS BLOCKING UNION EFFORTS. THERE WE HAVE LONG-TERM PUSHES AND CONTINUING IN THE HAVING A GREAT COOL DID CHANGE SOME OF ITS POLICIES AROUND FORCE ARBITRATION AND MANDATORY ARBITRATION. I THINK IT IS CONTINUING TO DO THINGS, A LOT OF IT IS THE PRESS. IT IS THE PRESS PAYING ATTENTION. IT’S HAVING THINGS MADE VISIBLE TO THE WORLD. I DON’T THINK THEY WILL CHANGE ON THEIR OWN. I THINK THE VALUES ARE SET IN THE FOUNDERS ARE STILL THERE, AND MAKES IT VERY HARD TO CHANGE INTERNALLY. IT HAS TO BE EXTERNAL PRESSURE. IT’S THE PRESS, EMPLOYEES, GRADING INTERNAL PRESSURE THE EXTERNAL FORCES. . >>>OTHER THINGS CAN PLAY INTO THIS IT. REALLY BAD PRESS CAN HURT COMPANIES ECONOMICALLY. THEY’LL START TO DO IT. THIS WAS AN INTERESTING CASE OF ORGANIZING AND AROUND A LOT OF UNHAPPINESS, AND GREAT PRACTICES, IT HAD A MEASURABLE IMPACT ON IN SOLVES AND USAGE AND CONSUMER BASED BAD PRESS PUSHED UBER TO PUSH HARDER ON WHAT THEY WERE DOING. >>MORE BAD PRESS, ESSENTIALLY CAN HELP MOVE IT ALONG AND, OF COURSE, EMPLOYEES. >>SPEAKING OUT AND PROTESTING. >>WE SEE SOME CHANGE HAPPENING, LIKE SPEAKING OUT DOESN’T NECESSARILY LEAD TO CHANGE. SOMETIMES IT DOES, AND SOMETIMES IT DOESN’T. I’M WONDERING WHAT ELSE CAN BE DONE TO PUSH COMPANIES IN THE DIRECTION OF ETHICAL DECISION MAKING. >>LITIGATION, RIGHT? WE GET SUED. AND THAT IS A BIG WAKE UP CALL. THEN ALL OF A SUDDEN, THERE’S A REASON WHY PEOPLE WANT ARBITRATION, IT’S TO KEEP THINGS OUT OF THE PRESS AND KEEP THINGS OUT OF THE PUBLIC’S MIND AND NOT HAVING ANY OUTSIDE FORCES MAKING DECISION, WHEN YOU HAVE ACTUAL LITIGATION, THAT’S PUBLIC AND YOU HAVE A JUDGE OR A JURY MAKING DECISIONS AND YOU HAVE ANOTHER PUBLIC FORUM FROM WHERE PEOPLE OUTSIDE OF YOUR COMPANY HAVE INFORMATION TO MAKE DECISIONS, THERE’S A TRANSPARENCY TO IT. >>ONE OF THE THINGS FOR TECH COMPANIES, RECRUITING IS SO IMPORTANT AND ENABLE TO RETAIN GOOD PEOPLE. THIS TIES INTO THE ECONOMIC ARGUMENTS FOR PEOPLE TO CARE. IF THERE IS ENOUGH EMPLOYEES OR CANDIDATES WHO MAKE A STRONG STANCE, I WON’T STAND FOR THIS, I’LL LEAVE THE COMPANY AND PROTEST OR I WILL NO LONGER WORK AT A COMPANY THAT DOES THESE THINGS. THERE’S RECRUITING PRESSURE THAT COMPANIES MAY RESPOND TO. >>FOR SURE. >>ELLEN YOU’VE LONG CALLED FOR TRUMP TO BE KICKED OFF OF TWITTER AND HE’S STILL THERE, DO YOU THINK IT’S UNETHICAL TO ALLOW TWITTER TO KEEP HIM ON THE PLATFORM. >>THIS WAS IN JANUARY OF 201 OR FEBRUARY OF 2017, THAT WAS TRUMP WAS VIOLATING ALL OF THE RULES AND CAUSING ONLINE AND REAL LIFE HARASSMENT THAT TRACY MENTIONED, I DO THINK IT’S A QUESTION OF VALUES, AND IT’S A QUESTION OF ETHICS TO CREATE EXCEPTIONS BECAUSE YOU WANT TO DRIVE THIS GROWTH THAT YOU WANT TO USE TO FUEL YOUR STOCK PRICE AND TO FUEL RECRUITING AND TO FUEL THIS CAPITALISM THAT’S DRIVING ALL SORTS OF DECISIONS WITHOUT THINKING ABOUT THE LONG TERM DIRECTION OF WHERE YOUR PLATFORM IS GOING. JACK TALKS ABOUT THIS PUBLIC SQUARE AND WHERE YOU HAVE LIKE THIS DIGITAL VERSION OF THE PUBLIC SQUARE, BUT PEOPLE AREN’T SCREAMING AT YOU ON THE PUBLIC SQUARE. THEY’RE NOT CALLING YOU RACIST THINGS OR THROWING PICTURES OF HORRIBLE THINGS AND THEY’RE NOT, I DON’T WANT TO BE IN A PUBLIC SQUARE LIKE THAT, AND I DON’T WANT TO HAVE A PUBLIC SQUARE THAT’S DIGITAL CREATE THESE HORRIBLE EVENTS IN REAL LIFE, AND IF YOU’RE PART OF A PLATFORM THAT IS PUSHING ALL SORTS OF MASS SHOOTINGS OR HATE, OR YOU KNOW THESE IDEAS THAT ARE REALLY JUST BASED ON HATE AND TURNING THEM INTO ACTION, I DON’T THINK THAT’S AN ETHICAL DECISION, I DON’T THINK THAT’S A VALUES DRIVEN DECISION OR THE PUBLIC SQUARE, OR USING IT FOR GROUPS THAT ARE BEING HATED ON H I THINK YOU HAVE TO THINK ABOUT YOUR WHOLE COMMUNITY AND THINK ABOUT THE TYPES OF CONVERSATIONS YOU WANT TO HAVE. IT’S NOT THAT YOU CAN’T TAKE, CONFLICT ON THE SITE, BUT WHAT KIND OF CONFLICT ARE YOU WILLING TO TAKE. WHERE IS THE LINE BETWEEN MEANINGFUL CONVERSATION AND JUST, YOU KNOW OUTRIGHT HARASSMENT. USING THE F WORD AND THE C WORD AND THE N WORD, THAT’S NOT A CONVERSATION, THAT’S NOT AN EXCHANGE OF IDEAS AND I DON’T THINK PEOPLE THINK ENOUGH ABOUT WHAT DO THEIR PLATFORMS TO BE, WHAT DO THEY WANT THEIR PLATFORMS TO ENCOURAGE. >>I DON’T THINK ANY OF US WOULD SAY THERE ARE EASY DECISIONS HERE, THERE ARE IN BRIGHT LINES AND WE’VE SEEN PLATFORMS TAKE A STANCE ON THIS SORT OF THING. PINTEREST STOPPED ANTIVACS SEARCH QUERIES, HOW DO YOU DRAW THE LIES AND WHAT WILL YOU BLOCK RESULTS FOR. WE KNOW THIS IS CAUSING HARM TO OUR COMMUNITY HEALTH, PINTEREST SAYS, AND WE’RE NOT GOING TO ALLOW THIS INFORMATION TO PROLIFERATE ON OUR PLATFORM. THAT DOESN’T GIVE US THE BLUEPRINT FOR EVERY DECISION IN THE FUTURE, BUT IN THIS CASE, THERE’S A PRETTY CLEAR DECISION THAT PINTEREST COULD MAKE, CLOUD FLAIR TOOK DOWN DAILY STORMER, AND THIS SHOULDN’T BE OUR RESPONSIBILITY AS A PROVIDER OF INTERNET INFRASTRUCTURE, IF THEY ACT WE WILL ACT BECAUSE WE DON’T WANT TO ENABLE THIS. WE DEPTH WANT TO MAKE THESE KIND OF DECISIONS, BUT SOMETIMES YOU HAVE TO MAKE THESE CALLS EVEN IF THEY’RE NOT PERFECTLY GENERALIZABLE. EVEN WITH INTERACTIONS WITH PLATFORMS LIKE TWITTER IS THE ATTEMPT TO DESIGN THE PERFECT SYSTEM OF RULES AND THEY’RE HAMSTRUNG BY TRYING TO COME UP WITH THE PERFECT SYSTEM OF RULES AND IN THE MEANTIME THERE’S A LOT OF HARM BEING DONE. >>>AS YOU’RE RUNNING YOUR OWN STARTUP, HOW ARE YOU THINKING ABOUT SOME OF THESE ISSUES AND ARE YOU ALLOWED TO DRAW THE LINE ON ISSUES WHEN NECESSARY. >>WE HAVE SPOKEN ABOUT WHICH SERVICE PROVIDERS YOU WANT TO USE. THERE ARE SOME COMPANIES THAT WE’RE LOOK AT USING, BUT KNOWING THE STORIES OF THE FOUNDERS, WHAT THEY’VE DONE, PREVIOUS COMPANIES, WE HAVE CHOSEN NOT TO WORK WITH THEM. IT’S NOT A BIG STATEMENT, BUT AS PEOPLE IN A COMPANY, WE WANT TO FEEL GOOD ABOUT THE CHOICES ABOUT WHERE WE’RE SPENDING MONEY. WE HAVE TO BE PRACTICAL. IF THERE IS ONE SERVICE PROVIDER WE NEED AND NEED TO USE IT TO RUN OUR BUSINESS, WE’LL USE IT, BUT IF THERE ARE ALTERNATIVES WE’LL GO FOR THOSE. THERE’S ALL THE ALWAYS A PRACTICALITY ESPECIALLY WITH STARTUPS TO MAKE HARD TRADE OFFS, WHENEVER WE CAN, WE WANT IT WILL BE ABLE TO STAND BY IT ETHICALLY. >>ALSO WHEN IT COMES TO DECIDING WHO TO ACCEPT FUNDING FROM. >>YEAH. >>AND YEAH, ELLEN, I GUESS YOU, OBVIOUSLY, ADVISE YOUR STARTUPS AROUND FUNDING AND I MEAN DO YOU ENCOURAGE THEM TO LOOK AT, LIKE, THE LPS AND THE FUND, HOW DO YOU ADVISE THEM AROUND THOSE TOPICS AND MAKING SURE THAT THEY’RE NOT TAKING MONEY FROM THE WRONG PEOPLE? >>I THINK IT’S HARD, YOU KNOW TO KNOW, YOU WANT TO HAVE YOUR VALUES ALIGNED WITH YOUR FUNDERS. IT’S GETTING HARDER BECAUSE A LOT OF THE FUNDERS THAT HAVE A LOT OF MONEY ACTUALLY DON’T HAVE GREAT VALUES. YOU’RE LOOKING AT THE MEN FROM MBS, THE SAUDI ARABIAN GIANT FUND THAT’S BEEN INVESTING IN A LOT OF COMPANIES, THINKING ABOUT TAKING MONEY FROM RUSSIA, WHERE IS THAT MONEY GOING? ARE YOUR VALUES ALIGNED AND PREDICTABLE ON WHAT THEY’LL HAVE YOU DO OR ARE YOU TAKE MONEY FROM WHEREVER YOU CAN GET IT. YOU HAVE A HIGH VALUATION, YOU DON’T WANT TO GIVE SO MUCH DILUTION TO AN ENTITY THAT YOU MAY NOT BE IN AGREEMENT WITH. >>WHO DO YOU WANT TO MAKE MONEY FOR, IF YOU’RE SUCCESSFUL, DO YOU WANT TO PUT IT BACK TOWARDS A SAUDI FUND? MAYBE NOT. >>THERE ARE A LOT OF DECISIONS TO BE MADE, AND JUST, THINKING ABOUT HOW THOSE DECISIONS ARE GOING TO HAVE A GREATER IMPACT ON YOUR COMPANY AND SOCIETY, YEAH, LOTS TO THINK ABOUT, AND WE’RE UNFORTUNATELY OUT OF TIME, THANK YOU FOR BEING UP HERE WITH ME. >>THANK YOU. >>THANKS, EVERYBODY. >>>ALL RIGHT, ON THE Q AND A STAGE AT 10:30, THERE WILL BE A PANEL ON INVESTING IN AFRICA, IF YOU WANT TO CHECK THAT OUT, MAKE SURE TO MAKE YOUR WAY OVER TO THE Q AND A STAGE, GET YOUR QUESTIONS ON THE SLIDO APP. IT WILL BE A GREAT TIME. FOR NOW, WE’LL TALK ABOUT POT. WHO IS FAMILIAR WITH POT? NOBODY WANTS TO RAISE THEIR HAND? AS LONG AS YOU GUYS DON’T TELL MY MOM, I’LL TELL YOU I TOO AM INTERESTED IN THE POT. OUR NEXT GUESTS HAVE MADE IT EASIER THAN EVER TO CONSUME AND ENJOY. SO, PLEASE WELCOME TO THE STAGE, KEITH MCCARTY, AN INVESTOR AND FORMER CEO OF PACKS LABS AND FORMER CEO, CONNIE. >>>HI, GUIDELINES P GOOD MORNING. IT’S A TOPIC OF GREAT INTEREST TO MANY PEOPLE AND THERE’S SO MUCH GOING ON BETWEEN THIS WAVE OF VAPING RELATED ILLNESSES COMING POTENTIALLY LEGISLATION THAT WOULD MAKE FINANCIAL SERVICES TO CATER TO CANNABIS COMPANIES. THANKS FOR JOINING US. BHARE IT. I HAVE TO START WITH YOU, AS PEOPLE IN THE AUDIENCE JUST HEARD, WE INVITED YOU AS THE CEO OF PACKS LABS, THE CANNABIS COMPANY THAT YOU JOINED LAST YEAR. YOU’RE NO LONGER THERE, WHAT HAPPENED? >>WELL, YOU KNOW, COMPANIES SCALE AND LEADERSHIPS CHANGE, I WOULD SAY I GOT INTO THIS SPACE BECAUSE I WAS EXCITED ABOUT THE POTENTIAL OF TECHNOLOGY TO DEAL WITH A COMPLICATED , YOU KNOW, MESSY INTERESTING SPACE, AND YOU KNOW THE SPACE GROWS UP AND LEADERSHIP CHANGES HAPPEN. I’M EXCITED ABOUT WHAT COMES NEXT, I’VE BEEN FORTUNATE TO BE IN THREE DIFFERENT CATEGORIES, EMERGING CATEGORIES WHERE CONSUMERS ARE STILL GRAPPLING, WHAT DOES FITNESS TRACKING MEAN AND SMART HOME AND CANNABIS MEAN. IT’S A NATURAL TRANSITION FOR ME AND THAT’S ABOUT IT. >>YOU WERE AT AUGUST — >>AUGUST HOME, A FOUNDER OF BASIS AND I BUILT THIS THING AROUND CONNECTIVE DEVICES, APPLYING TECHNOLOGY ON HARDWARE AND SOFTWARE TO TAKE A COMPLEX EXPERIENCE, PEOPLE HAVE QUESTIONS WHAT’S RIGHT FOR ME, HOW MUCH, WHAT DOES BLUE DREAM MEAN WHAT DOES GERRY FIZZ MEAN. YOU CAN APPLY TECHNOLOGY TO SOLVE PROBLEMS. IT’S WHAT TECHNOLOGY DOES REALLY WELL. >>I DON’T COVER THIS INDUSTRY CLOSELY. I HAVE NOTICED THERE SEEMS TO BE A LOT OF TURNOVER. THIS SUMMER, BRUCE LINDEN A COFOUNDER OF CANOPY GROWTH, AM I READING TOO MUCH INTO TOO FEW DATA POINTS OR IS THIS AN INDUSTRY WHERE THERE’S A LOT OF UPHEAVAL. >>IT’S A PHASE AFTER PROHIBITION, IT’S ENDING STATE BY STATE BY STATE FOR CANNABIS. AS COMPANIES GROW, LEADERSHIP CHANGES ARE PART AND PARCEL OVER IT. IT’S SIMILAR TO MOST STARTUPS. THE INTERNET COMES ALONG AND THERE’S A GREAT STAGE FOR EACH OF THOSE, THAT LEVEL OF LEADERSHIP AND THEN THE SPACE GROWS UP AND YOU NEED DIFFERENT SKILL SETS. THAT’S PRETTY NORMAL. I THINK IT’S HAPPENING IN CANNABIS QUICKLY AND HAPPENING AROUND THE SAME TIME AND IT FEELS LIKE THAT. IT’S PRETTY NORMAL, IN MY MIND AT LEAST. >>>SO, YOU STARTED A CANNABIS COMPANY VERY POPULAR, THE ON DEMAND CELEBRITY COMPANY, EAVES, AND YOU STARTED ANOTHER. >>MY BACKGROUND HAS BEEN IN TECH FOR THE PAST 10 YEARS, WE LAUNCHED THIS COMPANY AND SCALED IT 3 AND A HALF YEARS AND SOLD IT TO MICROSOFT FOR 2 BILLION. I’VE BEEN IN THE TECH FOR THE PAST DECADE. WE LAUNCHED EAVES AND THAT’S THE UBER FOR CANNABIS, WITH THE CLICK OF A BUTTON GETTING DELIVERY IN 15 MINUTES. WHEN WE WERE GREG THAT COMPANY, ONE AS WE KNOW, IT’S MORE DIFFICULT TO FIND VENTURE CAPITAL FIRMS INTERESTED IN INVESTING IN CANNABIS. THE VENTURE IS LIMITED BECAUSE OF THE VICE CLAUSE AND DIFFERENT ASPECTS LIKE THAT. AT EAVES, THAT IS WHERE YOU DON’T HAVE A SELECTION OF CAPITAL VENTURE FIRMS TO CHOOSE FROM. AND AS IT STARTED TO GO, IT BECAME A SUPPLY CONSTRAINED GROWTH MODEL. JUST LIKE UBER, THEIR GROWTH IS DEPENDENT ON HOW MANY DRIVERS IT CAN SIGN UP WITH EMPLOYEES AND CARS AND VEHICLES. YOU TYPICALLY HAVE THAT MODEL. WHEN YOU START TO REALIZE THAT AND REALIZE THAT THE SUPPLY CHAIN NEEDS TO BE STREAMLINED AND THE BEST WAY TO STREAMLINE IT IS THROUGH TECHNOLOGY, IN SOME WAYS THAT SEEMS LIKE THE BEST OPPORTUNITY. FOR ME IT WAS MULTIPLE THINGS. ONE, WE’RE LUCKY TO HAVE A LEAD INVESTOR AT WAV, AND THE CEO AT YAMMER TO CONNECT THE DOTS. IT’S IMPORTANT FOR FOUNDERS TO CHOOSE YOUR INVESTORS WISELY AND SOME THAT ARE FOUNDER CENTRIC. THE ONES THAT ARE FOUNDER CENTRIC THEY UNDERSTAND HOW DIFFICULT IT IS TO RUN A COMPANY AND HOW DIFFICULT IT IS. IT’S RIDDLELED WITH A LOT OF FRICTION AND A LOT OF THINGS THAT ARE HARD TO UNDERSTAND, THAT HAVE A LOT OF INVENTORY. IT STILL EXISTS AND HAPPENS TO BE THE FASTEST GREG INDUSTRY IN THE WORLD. GOING BACK TO THE QUESTION AND ANSWERING THAT DIRECTLY, ONE, YOU KNOW, THERE WAS A BIGGER OPPORTUNITY ON THE SUPPLY CHAIN SIDE OF THE CANNABIS INDUSTRY AND THE COMPANY WAS IN A REALLY GOOD SPOT AND WE’RE SUPERENTHUSIASTIC OF THE CONTINUED GOETHE OF THE COMPANY. THIS COMPLIMENTS FROM WHAT WE BUILT FROM 2014 TO 2017 WHEN WE WERE AT THE HELM. AND THE NEXT THING, THE MESSAGE IS TO CHOOSE, YOU KNOW, INVESTORS THAT ARE FOUNDER CENTRIC. I THINK THAT’S EXTREMELY IMPORTANT, IF THEY’RE GOING TO ADD ADDITIONAL VALUE TO THE COMPANY, IT’S IMPORTANT THAT THEY ARE ABLE TO RELATE. >>I WANT TO TALK ABOUT WHO IS INVESTING IN CANNABIS FOR THOSE IN THE AUDIENCE WHO WANT TO KNOW. I HAVE TO MENTION TOO, I THINK IT’S INTERESTING, WE TALKED AHEAD OF THE CALL AND YOU SAID THAT YOU DIDN’T USE CANNABIS. SO, I’M WONDERING WHY DID YOU GRAVITATE TO THIS SPACE? >>MY, I BUILT A LOT OF ETHOS, MY BACKGROUND IS IN TECH, AS YOU KNOW. AFTER WE GOT ACQUIRED BY MICROSOFT. I WAS THERE FOR THE TRANSITION FOR ABOUT A YEAR. MY MIND WAS EVOLVING, THERE WERE OTHER STARTUPS SERVICING DIFFERENT NEEDS, THE HOME CATEGORY AND FOOD AND DRINK ON DEMAND. I STARTED TO BREAK THIS DOWN IN TERMS OF, I WANT TO GO AFTER ON DEMAND, WHICH CATEGORY, FOOD AND DRINK THAT’S PERISHABLE OR THE HOME CATEGORY THAT ALLOWS A LOT OF TRUST BEFORE YOU GET IN. CANNABIS POPPED UP AS A NATURAL FIT. I STARTED THERE, AND THEN AS I STARTED TO REALLY UNDERSTAND ARE THE CATEGORY AND UNDERSTAND THE PRODUCT, I WAS PULLED IN AND WE FIND THIS A LOT WITHIN THIS CATEGORY, PEOPLE GET PULLED IN FOR MULTIPLE REASONS, BUT USUALLY IT’S THEY THEMSELVES OR SOMEBODY CLOSE TO THEM OR SOMETHING THAT THEY VALUE HIGHLY IS ABLE TO DERIVE SO MUCH VALUE IF THEIR LIFE EVERY DAY AND IN SOME CASES IT BECOMES LIFE SAVING, FOR ME PERSONALLY, IT WAS CHILDREN, I SPONSOR AN ORGANIZATION CALLED CANNIKIDS. LITTLE KIDS WHO SUFFER FROM AILMENTS, FROM GRAND MALSEIZURES AND BRAIN TUMORS AND QUALITY OF LIFE, WHEN THESE LITTLE KIDS ARE RUNNING UP TO YOU AND TELLING YOU HOW CANNABIS SAVED THEIR LIFE OR IT’S REALLY HELPED THEIR QUALITY OF LIFE IN SOME CASES, THAT REALLY HIT, YOU KNOW, MY, SORT OF MY INTERNAL ETHOS AND DROVE ME TO BE IN THIS SPACE. BUT, IT REALLY DID START WITH TECH AND IT MOVED INTO — THIS IS A GOOD THING, NOT USING CANNABIS, I DIDN’T KNOW A LOT ABOUT IT AND I THINK THAT THERE’S A LOT OF STIGMATIZE ASIAN, THAT WE’RE TRYING TO CORRECT. WE’RE TRYING TO EXPLORE AND MAKE THESE OPPORTUNITIES FOR THE WORLD AS GOOD AS WHAT THEY CAN BE AND CERTAINLY, THE MARKET AND REALLY THE POPULATION IS THROUGH SENTIMENT IS SAYING, WE WANT THIS, WE SEE VALUE IN THIS AND WE NEED TO GO AFTER THIS AND I THINK THAT TECHNOLOGY NEEDS TO STEP UP, COMPANIES LIKE FAX AND WAVE V AND THE REST OF THEM, WE NEED TO HELP DELIVER THEM AND THE SAFETY THAT CONSUMERS WANT, NEED AND DESERVE. I THINK THERE’S ENOUGH OUT THERE TO MAKE IT A GOOD THING. >>CAN I ADD TO THAT. ONE OF THE HIGHLIGHTS FOR ME IN THE LAST YEAR AND A HALF HAS BEEN HOW MANY PEOPLE IN SILICON VALLEY, YOU KNOW WHO CAN WORK ON SELF-DRIVING CARS AND ROBOTICS, CANNABIS DOES A LOT OF GOOD FOR A LOT OF PEOPLE. IT’S A COMPLEX AND MESSY EXPERIENCE, HOW MANY SKILLS CAN WE TAKE TO BUILD A TESLA AND HOW DO WE MAKE IT A GOOD CONSUMER EXPERIENCE. >>I FEEL LIKE AFTER SO MUCH TIME SPENT AROUND, WHAT IS YOUR REVENUE TO DIRECTORY, THIS REALLY RENEWED MY OPTIMISM AND HOPE, FOR PEOPLE TO HAVE A COMPLEX MESSY SPACE, I FEEL LIKE IT’S SOMETHING UNIQUE TO THE VALLEY. THAT WAS EXCITING FOR ME. >>BRETT, YOU’RE A SERIAL ENTREPRENEUR, TO GO ALL TECH ON YOU, DID YOU DOGFOOD YOUR OWN PRODUCT AT PAX. >>IT’S THE SAME QUESTION AT THE END. I FEEL I HAVE TO, AND SO — >>I’M SORRY? >>I FEEL LIKE I HAVE, TO THE ANSWER IS YES. I DO CONSUME, AND IF YOU’RE A CONSUMER PRODUCT, WE SHOULD BE ABLE TO LEARN MORE ABOUT IT AND SEE WHAT THE EXPERIENCE IS LIKE WHETHER YOU WORKED IN THE LINKED IN OR THE CANNABIS SPACE, THE SAME RULES APPLY. >>YOU TALKED ABOUT INVESTORS, DCM AND CRAFT AND DAVID SAX IS ONE, HOW IMPORTANT IS IT, DO YOU THINK TO THESE INVESTORS THAT THEY’RE BACKING SOMEBODY WHO DOES COME FROM THE TECH INDUSTRY OR HAS THAT SORT OF BACKGROUND. HOW HARD IS IT TO BREAK INTO CANNABIS AND GET VENTURE BACKING? >>IT’S HARD TO DO INSTITUTIONAL CAPITAL. THAT’S THE HARD PART, ESPECIALLY WITH LAWS WHERE THEY ARE RIGHT NOW. CONGRESS HAS PASSED A BILL, AT THE SENATE RIGHT NOW THAT WILL OPEN UP INSTITUTIONAL CAPITAL, AT THE FEDERAL LAW, IT’S DIFFICULT FOR ANY ENTREPRENEUR, TECH OR NOT, TO BE IN THIS SPACE. >>YOU SOUND LIKE IT’S INEVITABLE ARE YOU TALKING ABOUT THE SAFE BANKING ACT, THIS IS THE HOUSE OF REPRESENTATIVES, IT WOULD PROTECT INVESTORS FROM CANNABIS COMPANIES AND LAWS. >>HOW OPTIMISTIC THAT THIS WILL TURN INTO SOMETHING, KEITH, WHAT DO YOU THINK? >>I AM REALLY OPTIMISTIC. IT WILL TAKE TIME. THIS IS THE BEGINNING, WE’RE LIVING IN THIS ENVIRONMENT, THIS IS THE FASTEST GROWING INDUSTRY IN THE WORLD. IT’S A FRAGMENTED INDUSTRY. THERE’S NO STARBUCKS OR COCA COLA OR BANK ACCOUNTS FOR THEM TO PUT THEIR MONEY THAT THEY’RE CAPTURING AND PAYING EXCISE TAXES AND TRANSPORTING CASH RELATIVELY TO THE CAPITOL TO PAY THESE THINGS, DESPITE THE FRICTION, IT’S THE FASTEST GROWING INDUSTRY AND THAT’S WHAT I CALL THE OPPORTUNITY. THAT’S WHAT TECHNOLOGY COMES IN. GETTING INTO FINANCE SPECIFICALLY, ONE, BANKING IS JUST THE BEGINNING. I THINK THAT REALLY, WHEN YOU’RE DEALING WITH THE FASTEST GROWING INDUSTRY IN THE WORLD, WHAT YOU’RE LOOKING AT IS HOW DO I STREAMLINE INVESTMENT. HOW DO I HAVE STREAMLINE CASH FLOW AT A REASONABLE RATE, HOW DOES THAT MAKE RATHER THAN DILUTING MY COMPANY FOR EXAMPLE, BANK SOMETHING JUST THE GOING. I THINK THAT PAYMENT ASPECT OR FIN TECH COULD BE HUGE. BUT, I THINK IT ABSOLUTELY, FROM MY PERSPECTIVE AND I MAY BE A LITTLE BIASED, THIS CONTINUES TO BE RIGHT. THIS INDUSTRY CONTINUES TO MOVE IN THE RIGHT DIRECTION, TO YOU THE RIGHT, WHETHER IT’S REGULATORY OR CONTINUED GROWTH, WHETHER IT’S THROUGH CONTINUED HEALTH AND WELLNESS. >>A GENERATIONAL OPPORTUNITY. >>WHO IS FIGHTING FOR CANNABIS IN WASHINGTON? DOES PAX HAVE LOBBYISTS OUT THERE? >>I THINK IT’S A BROAD COALITION, IF YOU LOOK AT THE SUPPORT FOR MEDICAL MARIJUANA, IT’S WELL OVER 85%, I THINK IT’S IN THE 90S RIGHT NOW, RECREATIONAL IS 56, 60%, THAT SWELL OF THE DEMOGRAPHIC CHANGES ARE HAPPENING, AND THE PEOPLE BEING EXPOSED TO CANNABIS HAS GROWN. IT’S THE PRIMARY DRIVER OF IT. I DON’T KNOW IF IT’S ONE BIG VOICE IN WASHINGTON PUSHING IT. I DON’T KNOW WHAT YOU THINK ABOUT LEGALIZATION, IT WILL TAKE AWHILE. IT’S NOT LIKE — WE HAVE MEDICARE AND OTHER PRIORITIES FOR THE COUNTRY, IT FEELS LIKE IF YOU’RE GOING TO BE IN CANNABIS, YOU SHOULD BE IN IT FOR THE LONG RUN. IT TAKES AWHILE TO STABILIZE. IT WILL HAPPEN STATE BY STATE BY STATE. YOU HAVE LARGE COMPANIES GROWING UP, THERE’S GROWTH, PATCHY AND LESS PREDICTABLE AND IT’S NOT A PLACE TO BUILD A QUICK AND EASY STARTUP, I WOULD SAY. >>THE GOVERNMENT SHOULD BE LOOKING AT VOTER SENTIMENT AND POPULATION, AND ONE, IT’S OVERWHELMINGLY IN SUPPORT OF CANNABIS, THE SUPERMAJORITY FOR MEDICAL AND EVEN FOR RECREATIONAL IS WELL OVER THE MAJORITY. IT’S PROBABLY ONE OF THE ONLY ITEMS ON THE AGENDA TO, THAT IS BIPARTISAN, TRULY SUPPORTED BIPARTISAN STAND POINTS AND I THINK. >>THERE’S JOBS AND TAXES ON THE ROAD STATEMENTS. >>ADDITIONAL JOBS AND TAXES, HEALTH AND WELLNESS, WE’RE TALKING ABOUT PUTTING MONEY TOWARDS BOOKS AND EDUCATION AND ALL OF THE ILLICIT THINGS WE’RE TRYING TO BREAK AWAY FROM, THE ILLICIT SALE OF WHAT MAY BE HARMING PEOPLE FROM A HEALTH AND WELLNESS PERSPECTIVE AND MONEY BEING USED FOR OTHER THINGS THAT ARE BAD. THIS SHOULD BE THE NUMBER 1 PRIORITY FOR OUR GOVERNMENT AND FOR MULTIPLE REASONS. >>THAT’S PRETTY AMBITIOUS. >>”BREXIT” HAPPENING, THE WORLD COULD USE MORE CANNABIS. >>IT SHOULD BE PRIORITY IF IT’S IN THE. >>>YOU TALKED ABOUT IT NOT BEING JUST BANKING, THE SQUARE WILL WORK WITH THE CBD RETAILERS AND A BETA AREA, AND THEY’RE STEPPING TOWARD WORKING WITH CANNABIS COMPANIES. ARE YOU SEEING ALTERNATIVE FINANCIAL SERVICES THAT ARE POPPING UP THAT ARE INTERESTING AND HELPFUL. >>THE BIGGEST LEVEL OF INNOVATIONS, THEY’RE DEVELOPING MORE AND MORE WAYS TO BE ABLE TO TRACK CANNABIS DOLLARS, GET TAXES PAID ON IT, ONE PAYROLL, IF THOSE TYPES OF THINGS, YOU’RE SEEING MORE ACTION, THE STATE INSTITUTION LEVELS AND THE FEDERAL INSTITUTIONS AND THE BIG FEDERAL BANKS. >>WE KNOW THERE’S A BIG ISSUE IN THE INDUSTRY, DESPITE BEING THE FASTEST GROWING INDUSTRY AROUND BANKING AND FINANCE, AND PAYMENTS, YOU KNOW, THE NET TERMS BEING OFFERED TO RETAILERS THROUGHOUT THE SUPPLY CHAIN IS ALWAYS DELINQUENT AND THEY’RE TRYING TO A LINE THE STARS AND HAVE TWO PEOPLE SHOW UP, THIS PERSON CAN HAVE THE ACCESS TO THE SAFE TO MAKE THAT PAYMENT AND THAT PERSON CAN’T SAY WHEN THEY’RE GOING TO BE THERE, THEY’RE TO THE A LOGISTICS, AND IT’S TECHNOLOGY ENABLED LOGISTICS, THE OTHER HALF EXISTS WHICH THAT PERSON NEEDS TO BE HANDLE CASH. IT’S PHYSICAL HAND OFF. I THINK THAT THERE’S STILL A LOT TO BE SOLVED IN THIS INDUSTRY, AND THAT TO ME MEANS OPPORTUNITY AND I THINK THAT TECHNOLOGY IS A LOT OF WAYS IS THE BEST TO SOLVE IT. IT ENABLES TRANSPARENCY AND PREDICTABILITY AND COMPLIANCE AND SCALABILITY. ALL OF THE THINGS ARE A PERFECT RECIPE FOR THIS PREPROHIBITION TIME OF ENVIRONMENT, IT’S A POST PROHIBITION TYPE OF ENVIRONMENT. WE LIVE IN TECHNOLOGY AREA, THAT’S EXCITING FOR TOOLS. IT’S EXCITING FOR WAYV AND THE CAN BUS INDUSTRY. >>I THINK THOSE ARE THE THREE KEY THINGS FOR IT TO BE NORMALIZED. >>YOU HAVE A NEW ISSUE, IT’S THE WAYV OF CANNABIS, VAPING RELATED ILLNESSES, 1,000 CASES HAVE BEEN REPORTED AND 600 OF THOSE SAID THEY WERE VAPING THC, HOW BAD WILL THAT BE FOR A SET BACK IN THE INDUSTRY. THAT MUST BE MAKING PEOPLE NERVOUS IN WASHINGTON AND ELSEWHERE. >>I’LL TAKE THE LEAD, BHARA. IT CAN COMMENT ON HIS EXPERIENCE, PART OF THE REASON I GOT INTO THIS, WHAT THE VOTERS VOTED IN WAS SAFE ACCESS. TO ME WHAT I’VE HEARD FROM OTHER VOTERS, IT’S ABOUT ACCESS POINTS AND BEING ABLE TO RECEIVE AND CONSUME CANNABIS BASED ON THE PERMISSIONS AND THE LAWS AND THE REGULATIONS, THE SAFETY PART OF IT MEANS THAT IT NEEDS TO GO THROUGH THE TESTING PROCESS WHICH THE STATE MANDATES FOR THE LEGAL ENVIRONMENT. NOW, WE HAVE THREE TIMES AS MANY ILLICIT DISPENSARIES IN THE STATE OF CALIFORNIA THAN WE DO LEGAL. THERE ARE MULTIPLE REASONS WHY. IT’S CERTAINLY NOT BECAUSE NOT MANY PEOPLE WANT TO BE COMPLIANT AND LEGAL RETAILERS, IT’S BECAUSE THE STATE IS TAKING SO LONG TO KIND OF IMPROVE THESE AND REQUIRE, THERE’S SO MUCH REGULATION AND FRICTION, IT’S KIND OF IN GETTING THOSE POPPED UP. AND IF YOU LOOK AT THIS, THIS IS WHY THEY NEED MORE REGULATION TO SOME DEGREE. WE NEED FRICTIONLESS REGULATION, AND UNTIL YOU GET RID OF THE ELICIT MARKET, THERE WILL BE THIS QUESTION OF HOW CAN YOU SAY THAT THIS HAPPENED, WHEN THERE IS PRODUCTS THAT’S NOT BEEN TESTED AND THEY’RE NOT INCENTIVIZED AND THEY’RE LOOKING AT THIS QUICK WITHIN WITHOUT ANY OVERSIGHT OR RESPONSIBILITY THAT THEY HAVE TO TAKE. I THINK THAT’S A SHAME FOR THE, YOU KNOW THE CLIENT AND LEGAL MARKET, BECAUSE ONE THEY’RE PAYING HIGHER TAXES, THEY HAVE TO PAY FOR THE LICENSING, AND HAVE TO WAIT, IT’S A COSTLY AND TIMELY PROCESS TO GET LEGAL REQUIREMENT FROM A PERSPECTIVE AND A MANUFACTURING PERSPECTIVE. I THINK IT REALLY COMES DOWN TO, WHAT IS THE RIGHT BALANCE BETWEEN THE FRICTIONLESS ENVIRONMENT AND A CONSTANT ENVIRONMENT WHERE WE CAN SAY, I’M NOT SURE OF THE LATEST NEWS. IT’S NOT SAFE MATERIALS, IN THE ILLEGAL PRODUCTS, AS POSED TO THE LEGAL PRODUCTS, AT LEAST THIS INDUSTRY ON THE COMPLIANCE SIDE TAKES THAT STANCE THAT ONLY USING WHAT THEY CONSIDER TO BE SAFE PRODUCTS AND NATIONAL PRODUCTS. THEY TAKE THAT VERY SERIOUSLY, THEY EXCEED THE REQUIREMENTS OF WHAT THE STATE REQUIRES. >>WE’RE RUNNING OUT OF TIME. I KNOW YOU’RE NOT PART OF PAX, HOW CONFIDENT THAT NONE OF THESE CASES WILL BE TRACED BACK TO A PAX VAPE RISER. >>I THINK THAT’S A GOOD QUESTION, PEOPLE ARE SICK OUT THERE, AND I WANTED THE CDC AND THE REGULATORY BODIES LOOKING INTO THE CASE TO KIND OF INVESTIGATE THOSE CAUSES AND COME BACK. >>I DON’T KNOW IF I HAVE A LOT TO SPEAK ABOUT DIRECTLY, THE COMPANY AND SPACE OUTSIDE, ONE OF THE THINGS I WAS GOING TO ADD ON TO, LEGALIZATION HELPS THE RESEARCH, THE CANNABIS SPACE IS MORE EDUCATION AND MORE RESEARCH AND MORE TRANSPARENCY AND STANDARDS SOMETHING THAT IS KEPT BACK, IT’S FADS TO THE ELICIT MARKET. THAT’S WHAT WOULD HELP. >>GUYS, YOU HAVE TO COME BACK NEXT YEAR, THERE ARE SO MANY OPPORTUNITIES YOU HAVE TO COME BACK — >>THIS IS YOUR MOM’S DREAM, THIS IS TALKING ABOUT WEED, SEE YOU GUYS NOW, LAWYER, DOCTOR AND WEED EXPERT. >>GUYS, THANK YOU SO MUCH, IT WAS REALLY A TREAT. >>THANK YOU. >>>I WANTED TO LET YOU GUYS KNOW, ON THE EXTRA CRUNCH STAGE AT 10:55, WE’LL BE TALKING TO ERIC FREED MAN AND JAMES PARK, THEY’RE THE FOUNDERS OF FITBIT, THAT WAS 10 YEARS AGO THAT FITBIT LAUNCHED ON OUR STAGE. THEY’LL TALK ABOUT HOW A HARDWARE COMPANY IS TAKEN TO THE PUBLIC. WE’LL SUE YOU IN TEN MINUTES. WE’RE TAKING A SHORT BREAK. SEE YOU AT 10:40. >>>LADIES AND GENTLEMEN, PLEASE, TAKE YOUR SEATS. THE PROGRAM IS ABOUT TO BEGIN. >>>LADIES AND GENTLEMEN, PLEASE WELCOME BACK TECH CRUNCH EDITOR JORDAN CROOK. >>HELLO, AND THEY WENT WILD AND THEY’RE SO EXCITED TO SEE ME. HEY! HA, HA, THANK YOU. SINGLE PERSON IN THE FRONT ROW. I APPRECIATE IT. >>>ARE YOU GUYS STILL HAVING A GOOD TIME. >>YEAH. >>I’M HAVING A GREAT TIME. I’M DEFINITELY NOT EXHAUSTED. >>>VENTURE CAPITAL AND SECURING IT FOR YOUR STARTUP CAN BE ONE OF THE MOST DIFFICULT THINGS ABOUT STARTING A COMPANY IF YOU’RE NOT EQUIPPED WITH THE RIGHT INFORMATION AND OUR NEXT GUESTS ARE HERE TO MAKE THAT A LITTLE EASIER FOR FOLKS LOOKING TO SECURE VENTURE CAPITAL. I WOULD LIKE TO WELCOME TO THE STAGE AT ACREW CAPITAL THERESIA GOUW AND THE COFOUNDER PARTNER AT FLOOD GATE. THERE ARE TECH LISTINGS AND DUAL SHARES. I HOPE WE CAN GET INTO THIS. BUT THERESIA, LET’S START WITH YOU. YOU STARTED A ASPECT VENTURES, ONE OF THE FEW FEMALE VENTURE FUNDS OUT THERE. IT WAS A BIG DEAL. BUT, YOU JUST, YOU’RE HEAR REPRESENTING A NEW FUN HERE AT ACCRUE CAPITOL TALLAHASSEE. TELL US WHAT HAPPENED. >>WE HAD ASPECT 1 AND 2. IT’S BEEN A GREAT RUN AND ON AND THIS WAS OTHER AWESOME ONES LIKE KRISTIN GREEN AND MORE AND MORE. WE WERE TALKING BACKSTAGE ABOUT THE NAME. AS IS ALWAYS THE CASE, WHEN IT’S TIME TO DO THE NEXT SET OF FUNDS, THE PARTNERS SIT AROUND AND TALK ABOUT THE STRATEGIES WHAT WE WANT TO DO AND THE ACREW TEAM WANTED TO DO WITH SERIES A COLLABORATIVE STRATEGY IN SOFTWARE AREA LIKE CYBERSECURITY, FIN TECH AND FUTURE OF WORK. WE THOUGHT ABOUT AS MANY LARGE FERNANDINA BEACH FIRMS DO, AS THEY DO MULTIPLE FUNDS, FUND NAME X AND FUND NAME Y, BUT I THOUGHT IT WOULD BE AWESOME TO CHOWS A NAME THAT REPRESENTED WHAT’S CORE TO US, WE’RE ABOUT TEAMWORK AND WE’RE A MULTIGENERATIONAL TEAM, WE HAVE GENERAL XY AND Z REPRESENTED ON THE FOUNDING TEAM AND IT’S BETWEEN MARK, MYSELF AND APRIL SAD. THAT SEEMS LIKE AND GREAT OPPORTUNITY, IF YOU GUYS CAN COME UP WITH A NAME THAT ENCAPSULATES ALL THAT AND IS BETTER, WE CAN DO THAT AND IT’S THE FOUNDER OF A NEW BRAND NAME. STARTUPS, IT’S A GOOD REASON, AND I FRANKLY, OKAY, THIS IS REALLY HEART. WHEN THEY CAME UP WITH ACREW CAPITAL, IT HAD A DOUBLE MEANING. CREW, CAPITOL, A TEAM. >>I’M A FAN OF THE TEAM YOU PUT TOGETHER. NUMEROUS MEMBERS OF YOUR TEAM. I WANTED TO SPEND ONE MORE ASPECT OF THIS. JENNIFER TOLD THE WALL STREET, HAD YOU DIFFERENT MANAGEMENT STYLES, YOU CAN ELABORATE ON WHAT SHE MEANT? >>YEAH, I’LL SPEAK TO MY MANAGEMENT STYLES. I HAVE FOUR MEMBERS AND WE OPERATE AS A TEAM AND WE HAVE EQUAL SAY IN MANAGEMENT AND INVESTMENTS DECISIONS. >>, I’VE HAD A CHANCE NOBODY BUSINESS SINCE I WAS REALLY LONG. I FOUND A TIGHT GROUP OF PARTNERS IN IT AND WORKING TOGETHER AS EQUALS, THAT’S WHEN I HAD THE GOOD FORTUNE TO HAVE SOME OF THE BOAST RESULTS AND BEST INVESTMENTS THAT THE TEAM HAS MADE. THAT’S MY STYLE, I’M ALL ABOUT TEAM FIRST, AND ALSO, IT REFLECTS BACK ON SORT OF, HOW DO YOU RAISE CAPITAL, PEOPLE SAY, ARE YOU MARKET, ARE YOU TEAM, OR TECHNOLOGY, EVERYBODY CARES ABOUT ALL OF THOSE THINGS AND CLEARLY WITH OUR NAME, WE’RE ABOUT BACKING THE BEST TEAMS IN THE SECTORS, WHERE WE FEEL LIKE, WE GOT SOME EXPERTISE FROM A INVESTING PERSPECTIVE. WE’RE ABOUT TEAM AND IN PARTNERSHIP WITH THE COMPANIES WE WORK WITH AND OUR COINVESTORS, THAT’S A BIG PART OF IT. >>I’LL ADD TO THAT. WHEN I CAME INTO THE VENTURE INDUSTRY, THERSERIA IS THE FIRST PEOPLE I HAD MET. I WALK INTO EXCEL AND I’M MEETING HER FOR THE FIRST TIME. SHE’S MADE INCREDIBLE INVESTMENTS IN CONSUMER AS WELL AS CYBERSECURITY WHICH IS AN AREA WHICH WAS OF INTEREST TO ME AND SHE WAS THE PERSON WHO GAVE ME THE MOST REAL ADVICE, NOT JUST PANDERING TO ME AS LIKE, THERE’S NOBODY VC, BUT HEY, YOU HAVE TO MAKE GREAT INVESTMENTS IN THE FIRST FEW YEARS OF YOUR LIFE AS A VC, DON’T THINK OF THEM AS INVESTMENTS, INVEST IN GREAT COMPANIES. SEE WAS TANGIBLE IN THE THINGS THAT SHE SAID. BEYOND THAT WE MADE OUR FIRST INVESTMENT TOGETHER AND SHE WAS, SHE WAS A COACH MENTOR BUT ALSO JUST A TEAM PLAYER, AND SO I HAVE SEEN THAT, I’VE SEEN IT FROM MY PERSPECTIVE, AS A COINVESTOR AND COMPANIES, AS SOMEONE WHO, YOU HEAR ALL OF THOSE HORROR STORIES OF PEOPLE BEING MEAN TO EACH OTHER IN THE VC INDUSTRY AND SHE STOOD OUT AS A PERSON WHO WELCOMED ME WITH OPEN ARMS AND TAUGHT ME ABOUT THE INDUSTRY. >>THAT’S REALLY LOVELY. >>>IT’S INTERESTING, YOU MENTIONED SHE WAS WITH EXCEL FOR MANY YEARS, YOU WORKED FOR CRV BEFORE COFOUNDING FLOODGATE WITH MIKE. THERE ARE MANY PEOPLE IN THE AUDIENCE WHO HAVE STARTED VENTURE FIRMS OR WOULD LIKE TO START VENTURE FIRMS AND BREAK INTO THE INDUSTRY. THERE ARE TWO PATHS, THE TRADITIONAL PATH WHERE YOU WORK FOR ARREST FIRM AND YOU GAIN SOME EXPERIENCE, YOU GET ELEVATED THROUGH THE RANKS OR YOU LEAVE TO START YOUR OWN FUND. BUT, MORE NEWLY, WE’RE SEEING MORE PEOPLE SAYING, FORGET IT, I’M GOING TO SKIP ALL THAT, I’M GOING TO WRITE CHECKS AND BUILD UP A PORTFOLIO AND ATTRACT INSTITUTIONAL INVESTMENT THAT WAY. IS ONE FAR BETTER THAN THE OTHER OR DO YOU THINK BOTH OF THESE COULD WORK LONGER TERM? DO YOU WANT TO START? >>I DIDN’T GO CRV DIRECTLY INTO IF FOUNDING MY OWN FIRM. I HAD A 7 YEAR STINT DOING A PH.D, NOT A PATH I WOULD RECOMMEND IF YOU’RE INTERESTED IN VENTURE CAPITOL. WHAT’S DIFFERENT OVER THE LAST TEN YEARS, WHEN I WAS STARTING IN 2008, NO ONE STARTS A VENTURE CAPITAL FIRM. DO YOU REALIZE THIS. THIS SOUNDS LIKE A BAD IDEA. IT’S 2008, NO ONE DOES THAT, BE AN ASSOCIATE AT A BIG FIRM. AND TODAY, LIKE THERE ARE SO MANY DIFFERENT PATHS INTO THE MARKET, SO, I THINK IT’S BOTH AN OPPORTUNITY, BUT IT’S A HUGE CHALLENGE. WHEN I GOT STARTED, YOU JUST PLANTED YOUR STAKE IN THE GROUND. MIKE AND I HAD A SIGN ON THE DOOR, WE HAD SUBLET FROM A PHARMACEUTICAL COMPANY. PEOPLE WOULD HAVE TROUBLE FINDING US. NOW, THERE’S HUGE KNOWS OF TALENTED INDIVIDUALS AND THE QUESTION IS HOW DO YOU STAND OUT. FOR THE PERSON WHO WANTS TO FIND THEIR OWN FIRM OR WHO IS IT AN ASSOCIATE CLIMBING YOUR WAY THROUGH THE RANKS, YOU HAVE TO FIND OUT, WHAT IS YOUR SCHTICK AND MAKE YOU STAND OUT IN THIS CROWD OF INVESTORS. >>TO ADD TO THAT, OBVIOUSLY, WE HAD MORE IN THE FIRST PATH, AND THERE’S GREAT INVESTORS WHO WENT OUT, STARTING BUILDING THEIR ON INDIVIDUAL TRACK RECORDS AS ADVISORS AND ANGELS. THERE ARE GREAT ENTREPRENEURS WHO START VENTURE FUNDS. >>RIGHT. >>I THINK THERE ARE MANY GREAT ENTRY PATHS INTO IT NOW. BUILDING ON WHAT ANN SAID SPECIFICALLY, IN TERMS OF WHAT CARVES YOU OUT AS AN INVESTOR, WHAT MAKES YOU STAND OUT IS INVESTING IN GREAT PEOPLE AND GREAT COMPANIES, ESPECIALLY IF YOU’RE DOING IT, WHETHER YOU’RE DOING IT ON YOUR OWN OR THE CONSTRUCT AFTER BIGGER FUND. IT’S THINKING ABOUT IT IN THESE PERSPECTIVE. THEY’LL BE THE REFERENCES FOR YOU IF YOU WANT TO RAISE YOUR FIRST FUND OR SECOND OR THIRD. IT’S ABOUT INVESTING IN GREAT PEOPLE WHO ARE TRYING TO DO GREAT THINGS. AND EVERYONE KNOWS, ESPECIALLY THE EARLY STAGE, THE SERIES A PART OF THE VENTURE BUSINESS, NOT EVERYTHING WORKS OUT. IT’S NOT NECESSARILY THAT EVERY SINGLE ONE IS CORRECT, EVERYONE HAS TO HOLD TOGETHER AND HAVE A RATIONAL. I’M TRYING TO BUILD EXPERTISE IN XYZ AND THINKING ABOUT IT IN THAT PERSPECTIVE. THEY HELP ONE ANOTHER, THEY’LL HELP YOU GET THE NEXT DEAL. THEY WANT TO MAKE SURE IT’S THE GREAT TEAM. YOU HAVE TO HAVE A UNIQUE PERSPECTIVE AND BEAT IT AND BECAUSE IT’S CYBERSECURITY AND YOU HAVE A PH.D, SHE IS REAL BAD ASS IN CONSUMER OR FIN TECH OR SAAS, WHATEVER IT IS. >>>ANN, SPEAKING OF YOUR AREAS OF EXPERTISE, YOU’RE ON THE BOARD OF LYFT AND WE CAN’T SPECIFICALLY TALK ABOUT LYFT, I WANTED TO ASK YOUR THOUGHTS ABOUT THE CALIFORNIA LAW 85, IT RECLASSIFIES MANY INDEPENDENT CONTRACTORS AS FULL-TIME EMPLOYEES. >>SURE. I CAN’T SPEAK ON BEHALF OF LYFT. THIS IS MY OWN PERSONAL OPINION. WHAT I’M SEEING IS THE COMPANIES THAT ARE INVOLVED WITH THIS LEGISLATION, THEY ARE TRYING IT FIND THE RIGHT SOLUTION. AND WHETHER, WHAT IT LOOKS LIKE WITHIN LEGAL STANDARDS, WORKING WITH GAVIN NEWSOM TO TRY TO COME UP WITH WHAT IS THE RIGHT ANSWER HERE. WE’LL SEE CONTINUED EVOLUTION OVER THE NEXT 6, 12, 18 MONTHS. ON THE INVESTOR SIDE OF THINGS, I THINK THERE’S INCREDIBLE OPPORTUNITY IN THE FACT THAT PEOPLE THINK ABOUT WORK VERY DIFFERENTLY NOW. I HAVE BEEN TALKING A LOT WITH MY TEAM AS WELL AS FOUNDERS OUT THERE ABOUT THE CONCEPT THAT THERE IS A NEW SOCIAL CONTRACT BETWEEN EMPLOYEES AND PEOPLE WHO WORKING AND THEIR RELATIONSHIP WITH WORK. AND THAT’S SOMETHING REALLY PROFOUND AND NEW OVER THE LAST TEN YEARS. AND I DON’T THINK THAT WE HAVE A WORLD RIGHT NOW THAT REALLY REFLECTS THAT. SO, WE NEED TO FIGURE OUT SOLUTIONS FOR EVERYONE, WHETHER YOU’RE A TECH WORKER, OR NOT, ON HOW DO YOU, NOW, CREATE A NEW SOCIAL CONTRACT BETWEEN THE PERSON WHO IS WORKING AND HOW THEY’RE WORKING. >>RIGHT. >>IT’S NOT CLEAR, AND I THINK A LOT OF INDEPENDENT CONTRACTORS ARE CONFUSED ABOUT WHETHER OR NOT TO FEEL GOOD OR BAD ABOUT THIS PARTICULAR LAW. >>>IN TERMS OF INVESTMENTS HOW DOES IT IMPACT — ARE YOU TALKING ABOUT — WOULD IT IMPACT HOW YOU FUND ON DEMAND COMPANIES, WOULD IT HAMPER THEIR CHANCES? >>IT’S SUCH AN EARLY STAGE, WE’RE WELL BEYOND WE’RE THE ENTREPRENEURS AND WE’RE THE LYFT OF OR UBER OF SO-AND-SO. THAT WAS FOUR OR FIVE YEARS AGO, TO BE HONEST. RIGHT NOW THE TYPES OF COMPANIES I’M SEEING IS REALLY AROUND HOW DO WE CREATE NEW ENVIRONMENTS FOR THE SOLOPRENEUR, WE’RE CALLING IT THE IRON MAN SUIT FOR THE SOLOPRENEUR. WORKERS WHO ARE ON THE SERVICE MARKETPLACES, FOR THE MOST PART YOU HAVE TO HAVE AS A CONSUMER HAVE A STANDARDIZED SERVICE FOR YOU, IF YOU’RE ORDERING GROCERIES ON INSTACART YOU WANT THE GROCERIES TO COME TO YOU AT A PARTICULAR TIME. IT’S NOT ABOUT A RELATIONSHIP WITH A PERSON. WE INVESTED IN A COMPANY CALLED DUMPLING, A PERSON WHO WANTS TO BE A GROCERY SHOP AND PROVIDES THEM WITH WORKING CAPITAL SO, THEY’RE ABLE TO ACTUALLY SHOP AND NOT JUST PUT IT ON THEIR OWN PERSONAL CARD, THEY CAN DEVELOP A CLIENTELE OF 10, 20 PEOPLE AND THEY’LL HAVE AN EXPERIENCE WITH INSTACART. MAYBE THAT PERSON GETS A KEY TO YOUR HOUSE, AND THEY’RE A SOUS CHEF FOR YOU, MAYBE YOU NEED A COUPLE OF ADDITIONAL ITEMS AND THEY BRING THOSE ITEMS FOR YOU. AND THERE ARE NEW DEW POINTS GETTING UNLOCKED BECAUSE OF THE CONSUMER MIND SET AND BECAUSE OF THE WAY PEOPLE VIEW THIS TYPE OF WORK. >>I TALKED TO THOSE GUYS RECENTLY, IT’S AN INTERESTING COMPANY AND THEME. >>>NOT TALKING ABOUT LYFT SPECIFICALLY AGAIN, BUT A BROAD NUMBER OF COMPANIES HAVE SEEN THEIR VALUATIONS THAT ARE VERY HIGH BEFORE GETTING ON TO THE PUBLIC MARKETS AND SOME CASES, THEY HAVEN’T GONE SO FAR, COMPANIES DON’T THINK IT’S WORTH WHAT THE PRIVATE MARKET INVESTORS DID. ARE PRIVATE INVESTORS STAYING PRIVATE TOO LONG? >>I THINK THAT THEY ARE, HE IT’S NOT TOO MUCH THAT THEY’RE PRIVATE TOO LONG. THE MINUTES MATCH, SOME PEOPLE ARE STAYING PRIVATE TOO LONG HAS BEEN WHAT YOU SEE, THE TYPES OF TRANSPARENCY, GOVERNANCE AND VISIBILITY THAT YOU GET WHEN THE COMPANY IS PUBLIC AND HAS TO RESPOND AND REPORT TO PUBLIC SHAREHOLDERS, WHEN YOU STAY PRIVATE TOO LONG, SOME THINGS WE’VE SEEN SOME CASES LIKE UBER FOR EXAMPLE, WHERE THAT LACK OF GOVERNANCE AND OVERSIGHT, THEY HAVE BEEN PRIVATE AND DON’T HAVE THAT SAME KIND OF REPORTING, IT CAUSES PROBLEMS FOR A GOOD ABILITY TO GROW AND EMPLOYEES AND SERVICES FOR THE CUSTOMERS. THROWS A HUGE AMOUNT OF LATE STAGE CAPITOL COMING IN. THEY’RE FUNDING COMPANIES FOR AMOUNTS THAT ARE LARGER THAN IPOS USED TO >>SOMETIMES THEY’RE WRONG. THAT’S WHAT YOU SEE WHEN THE COMPANIES HAVE TO GO PUBLIC. THERE HAVE BEEN A FEW OF THOSE. THAT’S WHAT’S DRIVING THEM. IT’S NOT JUST THE TIME THEY STAY PRIVATE BUT THE AMOUNT OF CAPITAL. IT USED TO BE YOU WOULD TALK ABOUT 25 TO 40 PERCENT PRIVATE MARKET DISCOUNT TO PUBLIC AND NOW IN SOME CASES, YOU ARE SEEING THE REVERSE. >>THE FOUNDERS ARE STILL CHOOSING TO TAKE THAT LAST ROUND RATHER THAN GO PUBLIC. SO I GUESS ARE YOU TRYING TO ADVISE AND YOU ARE EARLIER STAGE INVESTORS. ARE YOU TRYING TO COUNSEL THEM TO MAYBE NOT DO THAT? >>I WOULD START AND HAND TO ANNE BUT YES WE ARE EARLIER STAGE. BOTH OF US HAVE BEEN WITH COMPANIES THAT HAVE GONE TO IPO AND BEYOND. WE ARE STILL ON THE BOARD AT THE TABLE WHEN THOSE DECISIONS ARE BEING MADE. WHETHER IT’S THE LAST PRIVATE ROUND OR SERIES B, MY COUNSEL TO THE COMPANIES IS THE SAME. YOU SHOULD RAISE MONEY AT AN AMOUNT WHERE YOU CAN SEE HOW THE MONEY IS GOING TO EITHER HELP YOU GET TO YOUR GOALS FASTER OR INCREASE YOUR CHANCES OF GETTING TO THE GOALS. THAT’S HOW YOU THINK ABOUT THE AMOUNT. THE VALUATION. OBVIOUSLY YOU WANT A FAIR VALUATION. BUT YOU WANT TO THINK ABOUT OKAY, I AM GOING TO NEED TO RAISE MONEY USUALLY EVERY 12 TO 18 MONTHS AS A PRIVATE COMPANY. WILL YOU BE ABLE TO RAISE YOUR NEXT ROUND? IF THAT’S IPO OR SERIES C. AT A HIGHER VALUATION. WILL I SHOW ENOUGH PROGRESS IN THE NEXT 12 MONTHS, WHATEVER THE POST MONEY IS ON THIS ROUND THE NEXT ROUND THE PRE MONEY HAS TO BE HIGHER. FOR YOUR EMPLOYEES, IT IMPACTS THEM THE MOST. >>I TEACH THIS CLASS AT STANFORD AND WE CALL IT INTELLIGENCE GROWTH. WE DO BELIEVE THERE IS NONINTELLIGENT GROWTH OUT THERE. ONE OF THE PEOPLE WHO COMES IN TO SPEAK IS RYAN SMITH FROM QUAL TRICKS. I LOVE THAT STUDY. HE WAS A THE $50 MILLION REVENUE BEFORE HE RAISES HIS FIRST ROUND OF FINANCING. GUESS WHAT THAT GETS YOU? AN $8 BILLION PLUS EXIT AND IT GETS YOU BASICALLY 50 PERCENT OF THE COMPANY AT EXIT. FOUNDERS DON’T THINK ABOUT THAT. WHEN YOU ARE INDULGING YOURSELF AND YOU ARE STUFFING THAT DUCK SO YOU CAN GET THIS GIGANTIC LIVER AND SOMEONE ELSE CAN EAT IT, THAT’S NOT FOR YOU, SPOILING YOUR COMPANY. IT’S RUINING THINGS FOR YOUR EMPLOYEES. WE LIKE TO THINK ABOUT HOW TO MAKE THE BEST FOR THE EARLY STAGE BUSINESSES, WHAT’S THE GROUNDWORK TO DO THAT? I TAKE A LOT OF RESPONSIBILITY FOR THE EARLY STAGE BUSINESSES AND THE FOUNDATION AL ELEMENTS THAT WE THINK ABOUT THAT ALLOWS FOR THESE COMPANIES TO THEN GROW AND HAVE THE RIGHT AMOUNT OF CAPITAL FOR THE RIGHT TIME. I THINK THE MASSIVE INFLUX OF CAPITAL AT THE LATER STAGES HAS CREATED PROBLEMS. >>SO SPEAKING ABOUT THE ROUND, SOFT BANK HAS BEEN INVOLVED IN SOME OF THE DEALS. SOMETIMES THE LAST INVESTMENT BEING DECIDED, VALUATION BEING DECIDED, IS BEING DONE BY SOFT BANK. SOFT BANK SEEMS TO BE STRUGGLING A LITTLE BIT. AT LEAST IT LOOKS TO POTENTIALLY OVER PAY FOR UBER. DEFINITELY PROBABLY FOR WE WORK. HAS SOFT BANK CHANGED THE PLAYING FIELD? IF IT DOESN’T CHANGE A SECOND FUND, DO WE GO BACK TO REASONABLE ROUNDS? PEOPLE ARE COMING DOWN. I AM JUST WONDERING IS THIS A PERMANENT STATE OF AFFAIRS NOW? >>WELL, SOFT BANK CLEARLY THE LARGEST BY CAPITAL PLAYER IN THE SPACE. I THINK IT WILL HAVE SOME IMPACT. IF FOR WHATEVER REASON THEY’RE NOT DOING WHAT THEY’RE DOING. THE REALITY IS THERE ARE MULTI BILLION DOLLAR LATE STAGE INVESTORS, MANY OTHERS BESIDES SOFT BANK. I THINK THE OTHERS HAVE PROVEN TO BE BECAUSE THE CAPITAL, THE LARGE IS NOT MEGA LARGE. I THINK THERE WILL STILL BE LATER ROUNDS AND THEREFORE COMPANIES WILL TAKE LONGER TO GO PUBLIC. I THINK THERE MIGHT BE A LITTLE BIT OF A MARKET CORRECTION IN TERMS OF TRYING TO FIND THAT RIGHT POINT WHERE THE LAST PRIVATE ROUND ISN’T GOING TO BE SIGNIFICANTLY HIGHER THAN WHAT AN IPO WOULD BE. >>ONE OTHER THING WE HAVE SEEN, BECAUSE FOUNDERS HAVE BEEN IN CONTROL I THINK PROBABLY FOR MAYBE THE LAST DECADE AND SO I THINK TO SOME EXTENT, A LITTLE BIT LOST CONTROL OVER WHAT THEY’RE DOING, HOW LONG THEY’RE DECIDING TO STAY PRIVATE, ANOTHER THING WE HAVE SEEN MORE AND MORE OF IS DUEL CLASS SHARES. I THINK NOW WE ARE SEEING IN A BROADWAY SOME PUSH BACK AGAINST COMPANIES THAT HAVE SO MUCH CONTROL THAT THE GOVERNMENT IS SORT OF WORRIED THAT THEY’VE RUN AWAY WITH THINGS. I AM WONDERING, AS INVESTORS, DO YOU HAVE A FEELING, DO YOU MIND DUAL SHARES, DO YOU THINK WHERE FOUNDERS HAVE THEM FOR THEIR LIFETIME NO MATTER HOW MUCH OF THE COMPANY THEY OWN ONCE THE COMPANY GOES PUBLIC? >>AGAIN, THIS IS SORT OF MY OWN PERSONAL OPINION. WE COME IN SO EARLY STAGE THAT WE DON’T SEE THAT AT THE EARLY STAGE. MOST OF THE DECISIONS ARE HAPPENING RIGHT BEFORE THE IPO FROM WHAT WE HAVE SEEN. I HAD ABOUT FIVE YEARS AGO A FOUNDER ASKING FOR DUAL CLASS SHARES AT THE SEED STAGE. I REMEMBER THINKING TO MYSELF, THIS IS — WHAT WE ARE SEEING NOW IS WHAT’S GOING TO BE HAPPENING FOR THE NEXT 5, 10 YEARS. IT WAS THE ONLY FOUNDER THAT EVER ASKED ME FOR THAT AT THE SEED STAGE. I WONDER HOW MUCH THAT’S PUSHED FORWARD. BUT THAT FOUNDER, I REMEMBER I TOLD THIS PERSON, IT DOESN’T MEAN ANYTHING AT THIS STAGE. ULTIMATELY THAT WILL COME BACK TO BITE YOU IF THIS IS WHAT YOU ASK FOR. SURE ENOUGH THE COMPANY FOLDED. TO ME THE BEST PROTECTION FOR A COMPANY IS FOR THE COMPANY TO BE A GREAT COMPANY. AT THE SAME TIME, I ALSO THINK THAT YOU ALWAYS WANT TO PROTECT THE INTEREST OF THAT FOUNDER VISION. WITH DUEL CLASS SHARES OR DIFFERENT PROVISIONS, THAT ATTEMPT TO BE SURE FOUNDER LED BUSINESSES ARE ABLE TO RUN THAT WAY. COMPANIES THAT ARE FOUNDER LED TEND TO MAINTAIN THEIR VALUE BETTER THAN COMPANIES THAT ARE NOT. ULTIMATELY LOOKING FOR A SHAREHOLDER INTEREST, WHETHER YOU ARE A PUBLIC COMPANY OR PRIVATE COMPANY, THAT’S SOMETHING THAT YOU SHOULD LOOK FOR AS AN INVESTOR. >>WE ARE ALMOST OUT OF TIME. WE ARE OUT OF TIME. DIRECT LISTINGS. A LOT OF YOUR PEERS THINK THEY’RE THE WAVE OF THE FUTURE. YES? NO? MAYBE? >>I THINK FOR LARGE COMPANIES MEANING THEY HAVE SHOWN THEY’RE AT SIGNIFICANT SCALE, I THINK IT CAN BE GREAT FOR THEM. THE SLACK AND SPOTIFY DIRECT LISTINGS HAVE DONE WELL. I KNOW NOBODY LIKES PAYING BANKER FEES, NO OFFENSE TO INVESTMENT BANKERS. >>THANK YOU SO MUCH. >>THANKS EVERYONE. [ APPLAUSE ] >>WHAT TECHNOLOGY DO YOU THINK WILL HELP US BEST DEAL WITH NATURAL DISASTERS? GO TO IBM BOOTH, BF1 TO PICK YOUR FAVORITE. OVER 5,000 PEOPLE HAVE ALREADY VOTED. >>IS ANYBODY ELSE CHILLY? JUST ME? GOT IT. I WANT TO TAKE A QUICK POLL. IF YOU COULD EDIT YOUR GENES TO CHANGE ONE THING RIGHT NOW TODAY, RAISE YOUR HAND IF YOU WOULD DO IT. INTERESTING. OUR NEXT GUEST WILLEN LIGHT US TO WITH MORE ON GENE EDITING. THE TITLE USED TO BE THE ETHICS OF SNITCHING BABY DNA AND I FELT WE HAD TO TONE IT DOWN. THEN I SAID IT ON STAGE. BEST OF BOTH WORLDS. PLEASE WELCOME TO THE STAGE. A WARM WELCOME.>>THANKS FOR COMING BACK. >>THANKS FOR HAVING ME. I APPRECIATE IT. >>ABOUT TWO YEARS AGO YOU WERE ON TECH CRUNCH DISRUPT. YOU HAVE SINCE MOVED TO HUMANS. WHY IS THAT? >>I THINK MANY START UP COMPANIES WE HAVE GONE THROUGH VERSIONS AND PIVOTS AS WE FIGURE OUT THE BEST WAY WE CAN USE GENE EDITING. WHEN WE FIRST FOUNDED IT WAS A BROAD PLATFORM TECHNOLOGY PLAY. WE WEREN’T WORKING ON DEVELOPING ANY OF OUR OWN PRODUCTS AND INSTEAD PARTNERED WITH COMPANIES LIKE A LIVESTOCK COMPANY WHO IS WORKING ON SOLVING ANIMAL HEALTH AND WELL BEING ISSUES. OVER THE YEARS AS WE HAVE DEVELOPED BETTER VERSIONS OF CRISPR AND ADVANCED THE BALL IN TERMS OF TECHNOLOGY, WE REALIZED IT WAS A TIME TO BET OURSELVES AND INVEST IN DEVELOPING OUR PRODUCTS. TODAY WE ARE TAKING THE CAPABILITIES WE BUILT OVER THE MANY YEARS AND WE ARE DEVELOPING NEW CANCER THERAPIES USING CRISPR GENE EDITING. >>IT PROBABLY ALSO HELPED THAT THE PATENT WAS CLEARED UP. >>AT THIS POINT, A LOT OF THAT IS ONGOING. THERE IS WHAT’S CALLED AN INTERFERENCE PROCEEDING HAPPENING BETWEEN UNIVERSITY OF CALIFORNIA AND THEIR COLLABORATORS, THE INSTITUTE AND THEIR COLLABORATORS. THIS IS A STORY THAT WILL KEEP BEING TOLD OVER YEARS TO COME. >>I WANT TO GET INTO WHAT YOU ARE ACTUALLY DOING. THAT HAS TO DO WITH CAR T CELLS. CAN YOU EXPLAIN HOW CRISPR WORKS WITH THAT AND WHAT THAT IS AND WHAT IT MEANS. >>CAR T IS A PRETTY NEW TECHNOLOGY. THERE ARE ONLY TWO APPROVED PRODUCTS IN THE UNITED STATES. DOCTORS ARE ACTUALLY ABLE TO TAKE A CANCER PATIENT’S OWN T CELLS, SPECIALIZED IMMUNE CELLS, TAKE THEM INTO THE LABORATORY AND GIVE THEM A LITTLE THING CALLED A CAR WHICH IS BASICALLY A MOLECULE THAT CAN SPECIFICALLY RECOGNIZE A PROTEIN SITTING ON THE OUTSIDE OF CANCER CELLS. IT’S A WAY TO ENGINEER THE IMMUNE SYSTEM TO FIND AND FIGHT CANCER. TODAY THESE CAR T PRODUCTS ARE PATIENT SPECIFIC. PHYSICIANS ACTUALLY HAVE TO TAKE T CELLS FROM THE SICK INDIVIDUAL, MAKE A PRODUCT JUST FOR THEM, AND DELIVER IT BACK TO THEM. IT’S VERY EXPENSIVE. IT IS TIME CONSUMING. SOME OF THESE PEOPLE ARE SO ILL THEY ACTUALLY DON’T EVEN LIVE LONG ENOUGH FOR THEIR PRODUCT TO BE MADE AND DELIVERED TO THEM. GENE EDITING HOLDS INCREDIBLE POTENTIAL FOR THIS FIELD. INSTEAD OF HAVING TO TAKE A PATIENT’S OWN CELLS, WE CAN NOW GO TO HEALTHY DONORS, HEALTHY PEOPLE, HEALTHY T CELLS AND USE GENE EDITING TO MAKE ENOUGH CHANGES THAT WE CAN MAKE WHAT’S CALLED AN OFF THE SHELF PRODUCT. REALLY ONE OF THE CRITICAL CHANGES IS MAKING SURE YOU DON’T CAUSE GRAPH VERSES HOST DISEASE, IF YOU WOULD JUST TAKE AN ORGAN FROM YOU AND GIVE IT TO ME, MY BODY WOULD REJECT IT. IT WOULD KNOW IT’S NOT ME AND IT WOULD USE THE IMMUNE SYSTEM TO TRY TO KILL OFF THAT ORGAN, EVEN IF IT’S TRYING TO SAVE MY LIFE. SO WE CAN USE GENE EDITING TO BASICALLY TRICK THESE THINGS TO MAKE IT NO LONGER LOOK LIKE IT IS FOREIGN SO THEY CAN SURVIVE LONG ENOUGH IN THE CANCER PATIENT TO FIND AND FIGHT THE CANCER. >>SO JUST IT CLEAR THAT UP, YOU ARE SAYING YOU CAN MASS PRODUCE MEDICINE FOR CANCER PATIENTS NO MATTER WHAT KIND OF A CANCER THEY HAVE. >>IT’S ALL VERY SPECIFIC TO NOT ONLY CERTAIN KINDS OF CANCER BUT WHAT PROTEINS SIT ON THE OUTSIDE OF THAT CANCER. SO FOR EXAMPLE, THE FIRST PROGRAM THAT WE ARE WORKING ON IS TO TREAT CERTAIN KINDS OF NONHODGEKINS LYMPHOMAS. MANY OF THOSE HAVE A LITTLE PROTEIN THAT SITS ON THE OUTSIDE OF THE CANCER CELL CALLED CD19. OUR PRODUCT IS ABLE TO SPECIFICALLY RECOGNIZE THAT PROTEIN AND KILL THE CANCER CELLS THAT HAVE IT ON THE OUTSIDE. SO TO GO AFTER A DIFFERENT KIND OF CANCER, WE WOULD HAVE TO REENGINEER A NEW PRODUCT TO RECOGNIZE A NEW PROTEIN FOR THAT KIND OF CANCER. >>DO YOU THINK YOU WILL GET INTO ANYTHING BEYOND CANCER LIKE ALZHEIMER’S DISEASE? >>GREAT QUESTION. AT CARIBOU WE ARE LASER FOCUSED ON CANCER. BUT PEOPLE ARE DOING BROAD STUFF. PEOPLE ARE TRYING TO ENHANCE THERAPIES FOR GENETIC DISORDERS. I AM AWARE OF RESEARCH PROJECTS ON HUNTINGTONS RIGHT NOW. >>IS THERE ANY COMPANY THAT YOU CAN MENTION OR ANYONE THAT’S WORKING ON SOMETHING THAT YOU THINK IS KIND OF INTERESTING? >>SURE. ABSOLUTELY. I THINK ONE OF THE OTHER COMPANIES IN OUR SPACE IS NAMED CRISPR THERAPEUTICS. THEY’RE ADVANCING USING CRISPR TO TRY TO TREAT SICKLE CELL DISEASE, DISORDERS OF THE BLOOD SYSTEM. I THINK IT HOLDS PROMISE AND POTENTIAL. >>IT’S A SMALL COMMUNITY. YOU WERE TALKING ABOUT CRISPR THERAPEUTICS WHICH WASCO FOUNDED BY THE SAME WOMAN WHO HELPED COCREATE WITH JENNIFER AND ALSO IS YOUR COFOUNDER. IT’S INTERESTING THAT IT’S A LOT OF WOMEN AND A SMALL SPACE. >>IT’S PRETTY COOL, ABSOLUTELY. OF THE FOUR ORIGINAL CRISPR COMPANIES, TWO ARE LED BY WOMEN WHICH I THINK IS REMARKABLE. >>IT IS PRETTY REMARKABLE. THERE’S A LOT OF CONFUSION AROUND CRISPR. THERE ARE FEAR THAT WE ARE PLAYING GOD BY EDITING OUR GENES. WHAT DO YOU HAVE TO SAY? >>I THINK THEY’RE IMPORTANT ETHICAL AND MORAL QUESTIONS THAT HAVE TO BE ASKED AS PART OF FIGURING OUT WHERE TO USE THE TECHNOLOGY AND PROBABLY MORE IMPORTANTLY WHERE NOT TO USE THE TECHNOLOGY. AT CARIBOU WE HAVE A COMPANY POLICY, NO HUMAN EMBRYO EDITING. NO EDITING OF EARLY EMBRYOS, NO EDITING OF SPERM, EGGS. IT’S PARTAIN ETHICAL COMPONENT AND I THINK IT IS ALSO A QUESTION OF WHAT IS THE TECHNOLOGY READY FOR? OFTEN CRISPR IS DESCRIBED AS THE MICROSOFT WORD FOR THE GENOME. YOU CAN GO IN AND MAKE SOME CHANGES AND YOU ARE DONE. BUT IT IS NOWHERE NEAR AS EASY AS MICROSOFT WORD. THE SYSTEM IS IMPERFECT. YOU MIGHT WANT TO MAKE A CHANGE JUST IN THIS ONE PLACE BUT SOMETIMES OTHER CHANGES HAPPEN ELSEWHERE. WE THINK IT IS IMPORTANT TO WRESTLE WITH WHEN THOSE WHAT WE CALL OFF TARGET EFFECTS MIGHT BE ACCEPTABLE AND WHEN THEY’RE NOT F YOU ARE THINKING ABOUT A CANCER PATIENT WHO IS VERY ILL, HAS NO FURTHER TREATMENT OPTIONS, THEIR RISK TOLERANCE WILL BE VERY DIFFERENT THAN IF THINKING ABOUT A BABY WHO IS NOT EVEN BORN YET AND WHAT THE RISK TOLERANCE SHOULD BE FOR THAT INDIVIDUAL. THAT’S A BIG PART OF WHAT INFORMS OUR DECISION. >>DOESN’T THAT GET INTO ALSO THE GERM LINE EDITING WHICH IS SOMETHING THAT CAN AFFECT ALL OF HUMANITY? >>EXACTLY. SO IF YOU JUST EDIT A PERSON’S T CELLS OR THEIR BLOOD STEM CELLS, THOSE EDITS STAY WITH THEM AND DIE WITH THEM. THEY’RE NOT PASSED ONTO NEXT GENERATIONS. THE GERM LINE, EMBRYOS, EGGS, SPERM, THE EDITS IMPACT THE PERSON BORN FROM THE MATERIALS, ALL OF THEIR CHILDREN AS WELL. THAT’S A HUGE IMPLICATION THAT HAS TO BE THOUGHT ABOUT APPROPRIATELY AND AS A BIG PART OF WHY WE DON’T THINK IT’S APPROPRIATE. >>THERE ARE OTHER PEOPLE WORKING ON HUMAN EMBRYO EDITING SPECIFICALLY IN CHINA. WE HAVE SEEN THAT HAPPEN. WE DON’T ACTUALLY KNOW THE RESULTS OF THOSE EXPERIMENTS. SO CAN YOU EXPLAIN WHAT’S GOING ON WITH REGULATION HERE TO BE SURE WE DON’T DO SOMETHING COMPLETELY RECKLESS WITH THE FUTURE OF HUMANITY? >>ABSOLUTELY. REGULATION AND RULES VARY DRAMATICALLY AROUND THE WORLD ON THIS TOPIC RIGHT NOW. SOME OF THAT IS BECAUSE REGULATIONS WERE WRITTEN DECADES AGO, A LONG TIME BEFORE ANY OF THESE TECHNOLOGIES EXISTED. SOMETIMES THEY’RE IMPERFECT FOR THE CHALLENGES THAT WE FACE RIGHT NOW. IN THE UNITED STATES THE FDA HAS MADE IT CLEAR THAT THEY WILL NOT REVIEW ANY APPLICATIONS FOR PRODUCTS THAT RELY ON EDITING HUMAN EMBRYOS OR HUMAN GERM LINE MATERIAL. FROM A THERAPEUTIC PERSPECTIVE, THAT’S NOT GOING TO HAPPEN HERE. PEOPLE ARE DOING BASIC RESEARCH HERE IN THE UNITED STATES. EDITING EMBRYOS TO TRY TO BETTER UNDERSTAND EARLY DEVELOPMENT. BUT THAT’S NOT IN THE CONTEXT OF THEN TRYING TO CREATE A PREGNANCY AND CREATE A PERSON OUT OF IT. IN OTHER COUNTRIES, IT APPEARS IT MIGHT BE EASIER TO TRY TO DO THESE TYPES OF EXPERIMENTS AND AS YOU SAID ALLEGEDLY THERE ARE MULTIPLE EDITED BABIES IN CHINA BUT WE REALLY DON’T KNOW ABOUT HAPPENED THERE. >>IT SEEMS A TOUGH CALL TO SAY TO SOMEONE WHO WANTS A BABY BUT HAS A GENETIC DISORDER TO SAY SORRY, YOU ARE OUT OF LUCK. WHAT DO YOU HAVE TO SAY? >>IT IS HEART BREAKING. I HAVE SPOKEN WITH MANY PEOPLE WHO HAVE RARE GENETIC DISEASES AND WOULD DESPERATELY LOVE TO ENSURE THAT FUTURE GENERATIONS DON’T. I AM INCREDIBLY SYMPATHETIC TO THAT. I THINK IT HAS TO COME IN THE CONTEXT OF KNOWING WE ARE NOT SOLVING ONE PROBLEM AND CREATING MANY, MANY MORE WHICH AT THIS STAGE WE HAVE NO CONFIDENCE IN. >>LET’S TALK ABOUT WHAT PEOPLE ARE DOING IN THE U.S. NOW WITHOUT MUCH REGULATION WHICH IS THE DIY IN YOUR BASEMENT OR EVEN LIVE STREAMING INJECTING THEMSELVES WITH CRISPR. IT SEEMS LIKE WILD WEST OUT THERE. WHAT DO YOU HAVE TO SAY ABOUT PEOPLE WHO GET ONLINE AND BUY A KIT AND THEN WANT TO CRISPR THEMSELVES? >>I THINK THAT’S VERY DANGEROUS. I WOULD BREAK THE COMMUNITY INTO DIFFERENT BUCKETS. I THINK THERE ARE PEOPLE WHO ARE SCIENCE CURIOUS, SCIENCE ENTHUSIASTIC, BUY THESE KITS TO TEACH THEMSELVES OR CHILDREN ABOUT SCIENCE AND MAY BE EDITING BACTERIA OR YEAST. I THINK THAT’S AWESOME. WHEN PEOPLE HAVE ACCESS TO SCIENCE TO BETTER UNDERSTAND IT, IT IS FABULOUS. WHEN PEOPLE INSTEAD TRY TO TAKE THE MATERIALS AND SELF ADMINISTER THEM, I AM AWARE OF ONE CASE WHERE THAT’S HAPPENED IN THE UNITED STATES, I THINK IT IS TERRIBLY IRRESPONSIBLE BOTH FOR HOW THE INDIVIDUAL IS TREATING HIM OR HERSELF AS WELL AS THE POTENTIAL IMPACT THAT IT HAS ON THE COMMUNITY AND THE FIELD. THAT’S NOT HOW WE DO DRUG DEVELOPMENT. THAT’S NOT HOW WE SHOULD DO DRUG DEVELOPMENT. >>I AGREE BUT IT DOES SEEM OPEN AND AVAILABLE FOR ANYONE. THERE WAS A LAW RECENTLY PASSED IN CALIFORNIA THAT SAID YOU CAN’T BUY THE KITS, SELL THE KITS UNLESS THEY SAY NOT FOR HUMAN USE. BUT THAT SEEMS SORT OF LIKE A BANDAID ON THE PROBLEM. >>IT’S A UNIQUE APPROACH. MANY STAKEHOLDERS HAVE WAYS TO APPROACH THIS AND INFLUENCE IT. CALIFORNIA TOOK A LEGISLATIVE APPROACH. OBVIOUSLY THERE ARE ALL KINDS OF REGULATIONS THAT PREEXIST FOR HOW WE ARE SUPPOSED TO TEST AND EVALUATE FIRST SAFETY AND LATER EFFICACY OF NEW THERAPIES. AND NONE OF THAT FITS THE PARADIGM. >>THERE IS A GUY IN CALIFORNIA, I.T. CONSULTANT, MALAKAR RICIC WHO HAS A RARE SKIN DISORDER. HE IS BEGGING SCIENTISTS TO CRISPR HIM TO SAVE HIM FROM SKIN LESIONS HE GETS FROM THE SUN. DO YOU THINK HE SHOULD BE ALLOWED TO CRISPR HIMSELF? >>THAT’S A TOUGH CASE. I HAVE READ THE SAME ARTICLE THAT YOU HAVE ABOUT THIS. I THINK IT IS A GREAT EXAMPLE OF MISCONCEPTIONS OF WHERE THE CRISPR TECHNOLOGY IS TODAY. MAYBE GOING BACK TO THE MICROSOFT WORD ANALOGY, WE DON’T HAVE ALL THE TOOLS IN THE TOOL BOX FOR ALL CHANGES WE MIGHT WANT TO MAKE. WE ARE PRETTY GOOD AT DELETING THINGS AND ONLY DOING A JOB OF INSERTING NEW GENES. IT RELIES ON HAVING A SOPHISTICATED UNDERSTANDING OF WHAT’S WRONG IN A GIVEN GENOME AND HOW TO CORRECT IT. MY UNDERSTANDING IS HE HAS SOME OUT OF THE BOX IDEAS FOR HOW TO TAKE A GENE FROM A VERY DIFFERENT SPECIES TO PUT IN HIS GENOME TO TRY TO IMPACT HIS BIOLOGY. I THINK THAT’S COMPLETELY OUTSIDE THE CONTEXT OF HOW WE DO DRUG DEVELOPMENT AND DOESN’T SEEM LIKE A SAFE OR FAIR APPROACH FOR HIM. >>I CAN SEE THAT. WHAT’S THE WORST CASE SCENARIO? SCARE THE AUDIENCE A LITTLE BIT. WHAT’S THE WORST THING THAT CAN HAPPEN WITH CRISPR? >>I WILL BE HONEST. IN HONG KONG LAST YEAR, THE MEETING WHERE THE ANNOUNCEMENT CAME OUT THAT ALLEGEDLY MULTIPLE BABIES HAD BEEN EDITED WITH CRISPR. I THINK IT ALREADY WAS WHAT MANY THOUGHT OF AS THE WORST CASE OUTCOME. I THINK PEOPLE ARE VERY CONCERNED. I AM VERY CONCERNED THAT MISUSE OF THE TECHNOLOGY WILL HURT SOMEONE AND WILL SLOW DOWN ITS APPLICATION IN PLACES WHERE PEOPLE ARE FOLLOWING THE RULES AND THERE IS TREMENDOUS POTENTIAL AND PEOPLE ARE WORKING INSIDE OF THE REGULATED ENVIRONMENT THAT WE HAVE HERE IN THE UNITED STATES TO TEST THERAPIES THAT CAN IMPACT A HUGE NUMBER OF PATIENTS POSITIVELY. I REALLY WORRY ABOUT BOTH SIDES OF THAT. >>FROM MY UNDERSTANDING, PEOPLE CAN MAKE BIOLOGICAL WEAPONS AND THERE ARE OTHER DIRECTIONS THEY CAN GO WITH CRISPR NOW THAT WE MAINLY NEED BETTER REGULATION ON. >>I THINK THAT GETS A LOT OF ATTENTION. I THINK IF YOU WERE TRYING TO BE DEVIOUS AND DEVELOP BIOLOGICAL WEAPONS I THINK THERE ARE A LOT OF TECHNOLOGIES YOU WOULD GO TO FIRST. CRISPR WORKS ONE CELL AT A TIME, ONE ORGANISM AT A TIME. IT’S NOT A GREAT WAY TO ATTACK A LOT OF THINGS SIMULTANEOUSLY. I DON’T THINK THAT TAKES AWAY THOUGH FROM THE IMPORTANCE OF THINKING ABOUT THE SERIOUSNESS OF THE POTENTIAL AND CONSEQUENCES AND ETHICAL IMPLICATIONS. >>THAT’S FAIR. CRISPR ALSO YOU WERE SAYING ISN’T EXACTLY 100 PERCENT OF THE TIME. WE HAVE A LONG WAYS TO GO. SHOULD WE BE WORRIED ABOUT THAT SINCE WE ARE DOING HUMAN DNA EDITING NOW? >>I THINK THAT’S A PART OF WHY WE BELIEVE IT IS ACCEPTABLE AT THIS STAGE TO WORK ON DEVELOPING CANCER THERAPIES OR THERAPIES FOR OTHER PATIENTS WHO HAVE NO OTHER OPTIONS. THE FIELD IS DOING A LOT OF WORK. OUR TEAM IS DOING A LOT OF WORK ON TRYING TO IMPROVE THE SPECIFICITY OF THE TECHNOLOGY AND IMPROVE OUR ABILITY TO MEASURE IT. WE ACTUALLY EVEN HAVE A CONSORTIUM OF MANY OF THE COMPANIES AND SOME OF THE ACADEMICS WHO ARE LEADERS IN THIS FIELD WHO ARE WORKING TOGETHER IN A COMPETITIVE WAY, LED BY NIST TO DEVELOP AS AN INDUSTRY TO SOLVE SOME OF THE PROBLEMS >>WHERE ARE YOU IN THE PROCESS? ARE YOU DOING CLINICAL TRIALS? >>SOON. WE ARE IN PRECLINICAL RESEARCH. WE EXPECT FIRST PHASE ONE TRIAL NEXT YEAR. >>DO YOU KNOW HOW MANY PEOPLE YOU WILL BE USING? NOT USING. THAT’S NOT THE RIGHT WORD. BRINGING INTO THE TRIAL. >>THAT’S A GREAT QUESTION. TYPICALLY THE TRIALS ARE PRETTY SMALL AND IT IS MAYBE 20 TO 30 PATIENTS WHO WOULD BE PART OF A PHASE ONE TRIAL. >>HOW DO YOU HANDLE NOT KNOWING THE CONSEQUENCES FOR EDITING HUMAN DNA MAYBE 300 YEARS FROM NOW? >>THAT’S A GREAT QUESTION. I THINK THAT WE TRY TO INFORM AND INFLUENCE WHAT CAN BE DONE, WHAT SHOULD BE DONE, WHAT CAN’T BE DONE TODAY. AS A SMALL COMPANY WITH NOT A LOT OF RESOURCES, WE DON’T OFF ITEN HAVE THE OPPORTUNITY TO THINK 300 OR 500 YEARS FROM NOW. WHEN MY BOARD OF DIRECTORS ASKS ME ABOUT 3 OR 5 YEARS FROM NOW, I THINK THAT’S AN ETERNITY. I THINK WE HAVE AN OPPORTUNITY AS SCIENTISTS IN THE COMMUNITY TO BE PART OF THE LARGER CONVERSATIONS ABOUT THE ROLE THESE THERAPIES CAN PLAY. I THINK IN FAR FEWER THAN 300 YEARS WE WILL HAVE AN ENTIRE NEW WAVE OF MEDICINES THAT ARE REALLY GENETICALLY BASED. WE’LL BE ABLE TO TREAT DISEASE IN A MORE FINE GENETIC WAY THAN THUS FAR. I THINK THAT’S INCREDIBLY COOL. >>LAST QUESTION, WHAT ARE WE LOOKING AT MAYBE IN THE NEAR FUTURE? YOU MENTIONED THREE TO FIVE YEARS OUT. WHAT ARE WE LOOKING AT IN THE NEAR FUTURE? >>I THINK WE ARE LOOKING AT CLINICAL DATA. THERE ARE ALREADY MULTIPLE CLINICAL TRIALS HAPPENING IN THE UNITED STATES AND ELSEWHERE TESTING CRISPR IN EITHER THE CANCER CONTEXT OR GENETIC DISEASES. OVER THE NEXT THREE TO FIVE YEARS, WE ARE GOING TO START TO SEE A LOT OF EVIDENCE FOR HOW AND IF THAT’S WORKING AND MAYBE EVEN THE FIRST DRUG APPROVAL IN THAT TIME. >>THANK YOU SO MUCH FOR GETTING ON STAGE WITH US AND TALKING US THROUGH CRISPR. >>THANK YOU. REALLY APPRECIATE IT. [ APPLAUSE ] >>OKAY. I FINISHED A BIT EARLY AND RUSHED OUT HERE. EVERYTHING WILL BE OKAY. ON THE EXTRA CRUNCH STAGE — MY SHOE IS UNTIED. WOW! OKAY. AT 11:35, WE WILL BE TALKING ABOUT HOW TO BUILD A BRAND THAT GETS ATTENTION. THAT WILL BE FEATURING BROOK HAMMERLING, CHELSEA MACKER LAND, BEN PHAM COFOUNDER AND CREATIVE AT CHARACTER. YOU SHOULD CHECK IT OUT IF THAT’S SOMETHING OF INTEREST. WITH THAT WE WILL BRING OUT OUR NEXT GUEST. I COVERED SNAPCHAT WHEN IT FIRST LAUNCHED. IT’S BEEN A PLEASURE TO WATCH THE COMPANY GROW UP. IT’S A BIG ADULT COMPANY NOW. WITH THAT PLEASE WELCOME TO THE STAGE THE COFOUNDER AND CEO OF SNAP SPEAK AND YOUR MODERATOR.>>I HAVE BEEN TRYING TO GET US ON STAGE TOGETHER FOR YEARS NOW. SNAP WAS — THINGS WERE A LITTLE TUMULTUOUS AT SNAP IN THE MEANTIME. I UNDERSTAND WHY. BUT THINGS HAVE GOTTEN A LOT BETTER. NOW SUDDENLY SNAP SHARE PRICE HAS GONE FROM $5 TO $15 IN THE LAST YEAR. ENTREPRENEURSHIP CAN BE A STRUGGLE. MAYBE YOU CAN TELL THE FOUNDERS IN OUR CROWD WHAT WAS IT LIKE TO BE AT YOUR LOWEST MOMENTS. MAYBE IN THE EARLY DAYS OF SNAP AND IN THE LAST YEAR WHEN THE SHARE PRICE WASN’T SO WELL. HOW DID YOU PERSEVERE? THEY KNOW THEY CAN STICK THROUGH IT NO MATTER WHAT HAPPENS. >>I THINK IT IS DEFINITELY WAY EASIER. WE HAVE AN AMAZING TEAM. WE JUST CELEBRATED OUR 8th BIRTHDAY. I THINK OUR BUSINESS IS MUCH MORE CAPABLE TODAY THAN WHEN WE STARTED, BOBBY AND I. OUR FIRST PROJECT WAS CALLED FUTURE FRESHMEN WHICH WAS A WEBSITE TO HELP PEOPLE APPLY TO COLLEGE THAT ABSOLUTELY NOBODY USED EXCEPT FOR MY MOM. THIS WAS PAINFUL BECAUSE BOTH OF OUR YOUNGER SIBLINGS WERE APPLYING. WE FIGURED THEY WOULD USE IT BUT THEY WEREN’T INTERESTED EITHER. SOME OF THE HARDER MOMENTS WERE IN THE BEGINNING. WE LOVED WORKING TOGETHER AND REALLY ENJOYED BUILDING STUFF BUT THE STUFF WE WERE BUILDING NO ONE REALLY CARED ABOUT. THOSE ARE SORTS OF THE HARDER MOMENTS. >>CAN YOU GIVE US THE FIRST SLIDE ON THE SCREEN JUST TO SHOW YOU WHAT IT WAS REALLY LIKE FOR SNAPCHAT. PRETTY IMPRESSIVE. >>SO I DEFINITELY THINK BEING A PUBLIC COMPANY WITH A BIG TEAM IS A LOT EASIER THAN WORKING OUT OF MY DAD’S HOUSE. DEFINITELY EXCITED ABOUT THE PROGRESS THAT WE MADE. >>AT THE SHARE PRICE’S LOWEST, WHEN EMPLOYEES ARE DISTRACTED, PRESS IS GOING AGAINST YOU, WHAT DO YOU DO TO BE SURE YOU GET UP EVERY MORNING WITH THE SAME PASSION AND OPTIMISM? >>WE JUST LOVE WHAT WE DO. WE DON’T DO IT FOR THE SHARE PRICE. WE DO IT BECAUSE WE ARE EXCITED TO BUILD A PRODUCT THAT WE THINK MAKES A DIFFERENCE IN PEOPLE’S LIVES. I THINK THAT’S JUST A HUGE PRIVILEGE FOR OUR TEAM AND THAT’S WHAT INSPIRES US. SOME PEOPLE, WHEN THE GOING GETS UP, YOU HAVE TO SIT THERE AND THINK ABOUT WHAT YOU ARE DOING, IF THIS IS SOMETHING YOU REALLY BELIEVE IN. I THINK THAT WAS A GREAT THING FOR OUR TEAM TO GO THROUGH. THE PEOPLE AT SNAP TODAY HAVE BEEN THROUGH THAT AND KNOW THEY’RE AT SNAP FOR THE RIGHT REASONS. THEY REALLY WANT TO BUILD A BUSINESS THAT MAKES A DIFFERENCE. >>IF WE CAN GET THE NEXT SLIDE, SPECTACLES 3, THE NEW VERSION, THEY’RE MORE EXPENSIVE. YOU ARE MAKING FEWER OF THEM. IT KIND OF SEEMS YOU ARE BIDING YOUR TIME UNTIL AUGMENTED REALITY TECHNOLOGY IS READY FOR THE MAINSTREAM. WHAT IS THE STRATEGY? >>SPECTACLES REPRESENT REALLY A LONGTERM INVESTMENT IN AUGMENTED REALITY HARDWARE. I THINK IT WILL BE ROUGHLY TEN YEARS BEFORE THERE IS A CONSUMER PRODUCT WITH A DISPLAY THAT CAN BE WIDELY ADOPTED. IN THE MEANTIME WE HAVE BUILT A RELATIONSHIP WITH OUR COMMUNITY AND ALL THE PEOPLE WHO LOVE BUILDING EXPERIENCES AND AUGMENTED REALITY. WE ARE WORKING OUR WAY TOWARDS THAT IN THE FUTURE. RATHER THAN GO IN A HOLE OR AN R & D CENTER OR SOMETHING AND TRY TO MAKE SOMETHING PEOPLE LIKE AND SHOW THEM TEN YEARS LATER, WE CREATE A RELATIONSHIP WITH OUR COMMUNITY WHERE WE BUILD THE FUTURE TOGETHER. I THINK WHAT IS COOL ABOUT SPECTACLES 3 IS FOR THE FIRST TIME WE HAVE DEPTH CAPABILITY. IF YOU ARE USING LENS STUDIO WHICH ARE TOOLS FOR BUILDING AUGMENTED REALITY EXPERIENCES YOU CAN BUILD AR FOR THAT SPECTACLE’S CONTENT IN 3D USING DEPTH TECHNOLOGY. THAT’S AN ITERATIVE STEP TO THE AR FUTURE. WHAT’S EXCITING IS WE GET TO DO THAT TOGETHER WITH OUR COMMUNITY. >>BUILDING FOR TEN YEARS BEFORE YOU CAN REALLY SELL ANYTHING SOUNDS SUPER EXPENSIVE. HOW DO YOU OUT SPEND COMPANIES LIKE APPLE THAT ARE TRYING TO BUILD THEIR WAY THERE AS WELL? >>I DON’T NECESSARILY THINK OUT SPENDING IS A STRATEGY THAT WORKS OVER A LONG PERIOD OF TIME. WE HAVE TAKEN A LITTLE BIT OF A DIFFERENT APPROACH WHEN IT COMES TO AUGMENTED REALITY. THAT’S BY STARTING TODAY WITH THE TOOLS THAT WE HAVE. TODAY WE HAVE AN APPLICATION THAT OPENS INTO THE CAMERA. WE’VE GOT 200 SOMETHING MILLION PEOPLE USING OUR CAMERA EVERY DAY. AS PART OF THAT, WE HAVE ALL THE AR TOOLS AND WAYS TO EXPRESS YOURSELF. WE HAVE THIS PLATFORM SO ANYONE IN THE WORLD CAN BUILD AR EXPERIENCE AND DEPLOY IMMEDIATELY TO OUR COMMUNITY. TO DATE THERE HAVE BEEN 500,000 PLUS LENSES CREATED BY THE COMMUNITY. EVEN THOUGH AR EXPERIENCED THIS TINY SCREEN ON YOUR PHONE, BY THE TIME THE HARDWARE GETS THERE TEN YEARS FROM NOW WE WILL HAVE A THRIVING ECOSYSTEM OF EXPERIENCES PEOPLE CAN ENJOY. >>IT’S NOT NECESSARILY ABOUT OUT SPENDING BUT BEING ABLE TO ITERATE YOURSELF THERE. AS MUCH MONEY APPLE HAS IT DOESN’T HAVE A SOCIAL APP THAT’S SUCCESSFUL. >>THEY’VE GOT iMESSAGE WHICH I THINK IS A BIG HIT. >>YOU WOULD CONSIDER THAT BUT IT SEEMS TO UTILITARIAN COMPARED TO THE MESSAGING PRODUCTS YOU BUILD. >>SPEAKING OF TRULY SOCIAL PRODUCTS, TICKTOCK’S REMIX ABLE STORYBOARDED SOCIAL ENTERTAINMENT IS COMPETING ATTENTION WITH MORE BIOGRAPHICAL SPONTANEOUS CONTENT LIKE SNAPCHAT STORIES. WHY DIDN’T YOU INVENT THAT REMIX FEATURE? >>I THINK AT A HIGH LEVEL IF YOU LOOK AT TICK TOCK AND OTHER THEY DO REPRESENT A SHIFT. A LOT TODAY REALLY REVOLVES AROUND CONTENT YOUR FRIENDS MAYBE, PEOPLE YOU REALLY CARE ABOUT MAKE. THAT’S WHY IT IS GOOD. IT’S NOT BECAUSE IT LOOKS REALLY BEAUTIFUL OR HAS A PERFECT STORY LINE. THE REASON IT RESONATES WITH YOU IS BECAUSE THEY’RE YOUR FRIENDS. WE ARE SORT OF ON THIS JOURNEY AS CONSUMER TASTES EVOLVE AND THAT CONTENT BY YOUR FRIEND WILL ALWAYS BE IMPORTANT. AS CONTENT GETS BETTER AND BETTER ON MOBILE CONSUMERS WILL WANT EXPERIENCES THAT HAVE A BETTER NARRATIVE, ARE MORE HIGH QUALITY, HAVE MAYBE BETTER ACTORS OR THINGS LIKE THAT. IF YOU LOOK AT WHERE SNAP IS INVESTING, WE ARE INVESTING ON MAKING GREAT EXPERIENCES FOR YOUR FRIENDS TO EXPRESS THEMSELVES AND FOR YOU TO ENJOY THAT. ALSO ON THE PREMIUM SIDE WE HAVE THINGS LIKE SHOWS THAT ARE STARTING TO ELEVATE MOBILE STORY TELLING, INVESTING A LOT AND PRODUCING CONTENT THAT’S REALLY COMPELLING, FULL SCENE AND VERTICAL. WHAT YOU ARE DESCRIBING SITS IN THE MIDDLE. IT’S ON THAT EVOLUTION FROM CONTENT CREATED BY YOUR FRIEND TO REALLY PREMIUM CONTENT. >>SO YOU ARE SAYING THE USER TASTE IS SHIFTING IN THIS DIRECTION. IF YOU CAN PUT UP THE TICK TOCK SLIDE. BETWEEN SNAPCHAT STORIES WHICH IS ON THE BIOGRAPHICAL FRIENDS SIDE AND THE SHOWS WHICH IS MORE LIKE PUBLISHERS AND VERY PREMIUM OR MAYBE CELEBRITIES AND BIG PUBLIC FIGURES, HOW DO YOU COMPETE IN THE MIDDLE WHICH IS THE STORYBOARDED USER GENERATED, IF YOU CAN SHOW THE TICKTOCK SLIDE >>AT A HIGH LEVEL WE DON’T NEED TO COMPETE THERE TO BE THAT SUCCESSFUL. TODAY BECAUSE THE CONTENT FROM FRIENDS IS COMPELLING AND BECAUSE TALKING TO FRIENDS MAKES YOU FEEL GOOD, PEOPLE COME INTO THE SERVICE. THEN WE CAN SHOW OTHER GREAT PREMIUM CONTENT. I DO THINK THIS AREA AROUND INFLUENCER CONTENT OR PREMIUM CONTENT LIKE TICKTOCK IS AN AREA WE HAVEN’T INVESTED MUCH. IT IS SOMETHING IN THE FUTURE BUT WE FOCUS ON BUILDING EXPERIENCES FOR THE PEOPLE WHO ARE YOUR REAL FRIENDS AND ALSO PREMIUM PUBLISHERS. >>LET’S TALK ABOUT ANOTHER BIG SOCIAL APP YOU MIGHT BE FRIENDS WITH. INSTAGRAM. YESTERDAY INSTAGRAM LAUNCHED THREADS. MAYBE WE CAN SHOW THAT. THEY’RE BASICALLY TRYING TO STEAL MESSAGING FROM SNAPCHAT. WHAT DO YOU THINK ABOUT THREADS AND THE IDEA OF AUTO STATUS WHERE THEY SHOW YOU ARE AT YOUR HOME OR AT A CAFE BUT DON’T SHOW THE EXACT LOCATION LIKE YOU DO WITH SNAP MAP? >>I HAVEN’T HAD A CHANCE TO TEST DRIVE IT YET. I AM NOT SURE ABOUT THE STATUS FEATURE. BUT WE JUST CONTINUE TO INNOVATE FOR YOUR COMMUNITY, BUILD PRODUCTS THAT WE THINK REALLY RESONATE WITH THEM. I THINK THAT WILL CONTINUE TO BE OUR STRATEGY GOING FORWARD. >>WHY DO YOU GUYS BUILD WITH A FOCUS ON LOCATION IN SNAP MAP? I THINK LOCATION CAN FEEL A LITTLE BIT CREEPY AT TIMES. I PERSONALLY DON’T ALWAYS KNOW EVERYBODY TO KNOW WHERE I AM. OVER TIME, SNAPCHAT STARTED AS REALLY JUST BEING FOR CLOSEST FRIENDS BUT IT’S GROWN INCREASINGLY A WIDER SOCIAL GRAPH WITH PEOPLE THAT MAYBE AREN’T MY CLOSEST PEOPLE AND SHARING MY LOCATION FEELS EXTREME. >>I AGREE. I DON’T LIKE SHARING MY LOCATION WITH EVERYONE. I DON’T THINK I DO THAT. I THINK WHAT IS EXCITING IS LOCATION SHARING IS OFF BY DEFAULT. IF YOU WANT TO OPT IN YOU CAN PICK WHO YOU SHARE YOUR LOCATION WITH. FOR ME AND MY WIFE, THIS IS USEFUL BECAUSE SHE CAN SEE HOW FAR I AM ON MY WAY HOME. I THINK THAT SAVES US SOME OF THE FRICTION AROUND COMMUNICATING WHICH IS LIKE WHERE ARE YOU? WHEN WILL YOU BE HOME? IT IS NOT NECESSARILY FULFILLING. THAT SORT OF UTILITY CAN BE PROVIDED. IF YOU LOOK AT THE FUTURE OF MAPS AND WHERE THEY’RE GOING THIS IDEA OF A PERSONAL MAP EXPERIENCE SEEMS OBVIOUS TO US. WHEN YOU LOOK AT MAPS TODAY, IF YOU AND I OPEN APPLE OR GOOGLE MAPS WE BOTH HAVE THE SAME MAP. THAT’S WEIRD BECAUSE WE LIVE IN DIFFERENT LIVES HAVE DIFFERENT FRIENDS. WE IMAGINE ONE WHERE IT IS MORE PERSONAL FOR YOU. THAT STARTS WITH HAVING YOUR FRIENDS BECAUSE THAT’S PART OF YOUR PERSONAL LIFE. >>WILL WE SEE SNAPCHAT AND GOOGLE MAPS TEAM UP? >>I NEVER SAY NEVER. >>YOU HAVE CONTINUED TO BE COPIED BY THINGS LIKE INSTAGRAM. CAN YOU SHOW THE THREAD AND SPECTACLES SLIDE? THIS IS THE THE NEW LOGO FOR THREADS. IT’S KIND OF RIDICULOUS. WHAT DO YOU SAY TO THINGS LIKE THIS? >>I HAVEN’T ACTUALLY SEEN THEM SIDE BY SIDE ANYMORE. NICE. I’D SAY NICE LOGO.>>VERY DIGNIFIED. GOLF CLAP. ONE STRATEGY WITH COMPETING WITH FACEBOOK FOR YOU HAS BEEN THE DEVELOPER ECOSYSTEM. THAT’S SOMETHING THAT’S GONE PRETTY WELL. WHAT’S BEEN UP WITH SNAPCHAT SNAP KIT, A PLATFORM WHERE YOU LOG IN TO OTHER APPS AND SEND CONTENT BACK TO SNAPCHAT. >>I WAS WALKING AROUND A LITTLE BIT EARLIER OUTSIDE. I BUMPED INTO SOMEONE WHO MADE GIO FILTERS FOR SNAPCHAT WAY BACK IN THE DAY. OVER TIME THEY HAD AMASSED OVER 10 MILLION VIEWS AND I GOT TO HEAR THAT STORY. IF YOU LOOK AT THE WAY SNAPCHAT HAS EVOLVED WE HAVE INCREASED OPPORTUNITIES FOR PEOPLE TO PARTNER WITH US, EXPRESS THEMSELVES, GROW THEIR BUSINESS USING SNAPCHAT. IT STARTED WITH GIO FILTERS. NOW WE ARE INTEGRATED WITH 450 APPLICATIONS. I THINK LAST MONTH, 100 MILLION SNAPCHATTERS INTERACTED WITH SNAP CONTENT ORBIT MOJI OR THINGS LIKE CREATIVE KIT. THAT’S GROWN PRETTY SIGNIFICANTLY. AS YOU MENTION WE ALSO HAVE A GAMING PLATFORM, AUGMENTED REALITY PLATFORM, CONTENT PLATFORM. I THINK WHAT WE HAVE SEEN IS BY HELPING PEOPLE GROW THEIR BUSINESS WE CAN CREATE WIN-WIN-WIN PARTNERSHIPS THAT ALSO HELP SNAP GROW. >>HOW IS THE PLATFORM DOING? HOW MANY APPS DO YOU HAVE? HOW MANY USERS USING? >>OVER 450 APPLICATIONS AND OVER 100 MILLION SNAPCHATTERS LAST MONTH HAVE INTERACTED. >>THAT’S PRETTY IMPRESSIVE, LIKE HALF OF THE DAILY USERS EVEN THOUGH THAT’S OVER A MONTHLY TIME PERIOD. >>YEP. >>ONE OF THE THINGS I THINK IS FASCINATING IS IT FOCUSES DEEPLY ON PRIVACY WHICH IS SO DIFFERENT THAN OTHER DEVELOPER ECOSYSTEMS GIVEN CAMBRIDGE ANALYTICA SCANDAL AND FACEBOOK SAYING THEY HAVE TO REMOVE HUNDREDS OF APPS VIOLATING RULES. HOW DO YOU EXPLOIT CREEPINESS OF OTHER PLATFORMS THROUGH YOUR OWN SENSE OF PRIVACY? >>I THINK FOR US FROM THE BEGINNING PRIVACY IS SOMETHING WE CARED A LOT ABOUT. WE PIONEERED THINGS LIKE THE MESSAGES WHEN WE TOLD PEOPLE WE WILL NOT GATHER DATA LIKE YOUR ETHNICITY TO TARGET ADS. THAT WAS PRETTY RADICAL. PEOPLE WONDERED WHETHER WE COULD BUILD A BUSINESS. WE INVESTED A LOT IN INNOVATING. ONE EXAMPLE IS SNAP KID AND ANOTHER IS A WAY WE CAN DO DISTRIBUTED MACHINE LEARNING WITHOUT BASICALLY HUGE AMOUNTS OF PERSONAL USER DATA BEING UPLOADED TO THE CLOUD. I THINK AS YOU LOOK OVER TIME, WE ARE FINDING MORE OPPORTUNITIES TO INNOVATE AND PROVIDE BETTER HIGHER QUALITY AND PRIVACY PROTECTIVE EXPERIENCES TO OUR COMMUNITY. I THINK NOW WHAT’S GREAT IS OUR PARTNERS ARE SEEING HOW VALUABLE THAT CAN BE. THEY’RE ALSO LOOKING FOR PARTNER SOLUTIONS THAT PROTECT USER PRIVACY. I THINK NOW GIVEN HOW MUCH THE INDUSTRY EVOLVED OVER THE LAST 8 YEARS, IT REALLY WORKS FOR EVERYBODY. >>WE HAVE SEEN THERE IS A MUCH BIGGER EMPHASIS ON WELL BEING IN SOCIAL MEDIA RECENTLY. I THINK THAT’S VERY POSITIVE, THIS CONCEPT OF TIME WELL SPENT. WHILE YOU HAVE NEVER HAD LIKES, FACEBOOK AND INSTAGRAM ARE HIDING THEIR LIKE COUNTS. YOU GUYS STILL HAVE STREAKS. YOU HAVE MADE THEM LESS PROMINENT, LESS EASY TO FILTER TO SEE THEM BUT YOU REWARD FOR CONSTANT INTERACTION, MESSAGING BACK AND FORTH WITH A FRIEND EVERY DAY, YOU REWARD THEM WITH THIS EMOJI. CAN YOU SHOW THE STREAKS IMAGE? ARE STREAKS HEALTHY? >>TAKING A STEP BACK, ONE OF THE THINGS IS WE LOOK AT MENTAL HEALTH. THE NUMBER ONE PREDICTOR OF ENDURING A DEPRESSIVE EVENT IS HAVING CLOSE FRIENDSHIPS. IF YOU HAVE REAL FRIENDSHIPS WITH PEOPLE CLOSE TO YOU THAT CAN SUPPORT YOU, IT IS EASIER TO BOUNCE BACK FROM SOMETHING BAD IN YOUR LIFE. >>I HEAR THAT BUT AT THE SAME TIME THE PEOPLE, WHAT’S GO ON IN STREAKS IS NOT ALWAYS TRUE DEEP CONNECTION. THESE ARE PEOPLE SENDING AN IMAGE THAT’S JUST LIKE A RANDOM PHOTO WITH STREAK? TO THEIR FRIEND HOPING THEY WILL SEND ONE BACK SO THEY CAN KEEP THAT GOING. YOU HAVE SEEN THESE IMAGES BEFORE. IS THAT REALLY HEALTHY? >>WE HAVE STUDIED THIS OBVIOUSLY EXTENSIVELY. WE TALK TO THE COMMUNITY ABOUT HOW THEY USE STREAKS. I GET LETTERS FROM PEOPLE WHO TELL US WE JUST SPENT 1,000 DAYS STREAKING, WE HAVE BEEN THROUGH A DIVORCE, MY FRIEND HAD A KID, GRADUATED THROUGH COLLEGE. THIS REPRESENTS THE FACT THAT WE TALK EVERY DAY. I AM SURE YOU WILL FIND EXAMPLES WHERE SOMEONE SENDS A MESSAGE JUST TO MAINTAIN THEIR STREAK. FOR A LOT OF PEOPLE THE IDEA OF REWARDING THE DEEP FRIENDSHIP, REWARDING THE IDEA OF COMMUNICATING BACK AND FORTH EVERY DAY IS ENRICHING AND IT IS DIFFERENT THAN THE IDEA OF COMPETING WITH FRIENDS TO LOOK COOLER, LOOK PRETTIER, BE MORE POPULAR. >>DO YOU THINK LIKE COUNTS REALLY ARE PEOPLE COMPETING TO BE MORE POPULAR AND LOOK PRETTIER? >>I THINK AT A REALLY HIGH LEVEL LOOKING BACK AT THE EVOLUTION OF SOCIAL MEDIA, THE IDEA WAS PROVIDING POSITIVE FEEDBACK FOR USERS POSTING CONTENT AND CREATING A COMPETITION WOULD INCENTIVIZE PEOPLE TO MAKE MORE CONTENT WHICH WOULD CREATE MORTISING AND INVENTORY FOR FEED BASED SOCIAL MEDIA. IN THAT CASE I THINK LIKES HAVE WORKED. I THINK THEY PLAY TO PEOPLE’S DESIRE TO WANT TO BE APPRECIATED. SO I THINK THE CHALLENGE HAS BECOME WHEN PEOPLE CONFUSE SOCIAL MEDIA FRIENDS FOR REAL FRIENDS. THE MERRIAM WEBSTER DICTIONARY IS UPDATED WHEN YOU LOOK UP FRIEND, IT SAYS SOCIAL MEDIA CONNECTION. THAT SHOWS CHALLENGE IN OUR SOCIETY. THERE WILL ALWAYS BE PEOPLE WE DON’T KNOW WELL THAT STILL ADD VALUE BUT I THINK IT IS DEEP RELATIONSHIPS WITH PEOPLE YOU REALLY CARE ABOUT THAT CAN MAKE A DIFFERENCE. >>I WANT TO TALK ABOUT HEALTH AND WELLNESS. WE TALKED ABOUT IT IN THE FORM OF SOCIAL MEDIA. YOUR WIFE RECENTLY SAID IN AN INTERVIEW THAT WE HAVE STICKERS WE PUT ON OUR PHONES FOR RADIATION. I HAVE AN EMF DETECTER THAT PICKS UP WAVES IN THE AIR. THERE IS NO EVIDENCE OF HARM FROM NORMAL EMF EXPOSURE. DO YOU THINK THE TYPICAL EMF EXPOSURE IS HARMFUL? >>TRYING TO SHADE MY WIFE IN AN INTERVIEW? >>I AM ASKING YOUR OPINION. THAT’S WHAT SHE TOLD A MAGAZINE. WHAT DO YOU THINK? >>I HAVEN’T HAD OPPORTUNITY TO LOOK INTO IT. IF YOU ARE MARRIED, WHICH I THINK YOU ARE, YOU PROBABLY UNDERSTAND HOW YOU WANT TO SUPPORT YOUR PARTNER AND EVERYTHING THAT THEY BELIEVE. [ APPLAUSE ] >>I FEEL THAT. MY WIFE IS IN THE FRONT ROW. I FEEL THAT. DO YOU HAVE A STICKER ON THE BACK OF YOUR PHONE? >>NO STICKER. >>COOL. OKAY. SO MAYBE NOT BELIEVING IN IT WHOLEHEARTEDLY. >>WHY DON’T WE MAKE A DEAL. I WON’T MAKE FUN OF YOUR WIFE AND YOU WON’T MAKE FUN OF MINE. >>MY WIFE IS SUPER COOL, WAY COOLER THAN ME. DO YOU THINK BREAKING UP FACEBOOK WOULD BENEFIT SOCIETY? [ LAUGHTER ] >>IT’S REALLY HARD TO SAY. I THINK THINGS THAT WOULD BENEFIT SOCIETY ARE REAL PRODUCT CHANGES THAT THEY WOULD MAKE TO THEIR PLATFORM. I THINK THE THING EVERYONE IS CONCERNED ABOUT IS THEY’VE SEEN THAT COMPETITION HAS BEEN WHAT HAS MOTIVATED FACEBOOK TO MAKE THE CHANGES OVER TIME. IF YOU LOOK AT SNAPCHAT, INVENTIONS WE CREATED AROUND FEMORAL, PRIVACY, THOSE HAVE MOTIVATED FACEBOOK TO CHANGE THEIR PRODUCT OFFERING TO COMPETE. I THINK WHAT EVERYBODY IS CONCERNED ABOUT WHEN TALKING ABOUT ANTITRUST IS NOT COMPETITION. THEY WANT TO PROMOTE POSITIVE COMPETITION. WHAT EVERYONE IS CONCERNED ABOUT WHAT THEY WOULD CHARACTERIZE AS ANTICOMPETITIVE PRACTICES. FOR EXAMPLE PEOPLE UPLOAD SNAPS ON SNAPCHAT TO INSTAGRAM ALL THE TIME AND THEN INSTAGRAM SUPPRESSES THE SNAPCHAT HASH TAG OR SUPPRESS PEOPLE’S ABILITY TO POST SNAP CODES AS PROFILE PICTURE OR SUPPRESS ABILITY TO LINK TO SNAPCHAT ON THEIR PROFILE. THAT’S AN EXAMPLE OF ANTICOMPETITIVE BEHAVIOR. THE CHALLENGE IS ENCOURAGING PEOPLE LIKE FACEBOOK TO COMPETE BY MAYBE EVEN COPYING YOUR PRODUCTS BECAUSE THAT’S BETTER FOR CONSUMERS. LOOKING AT ANTITRUST, WE ARE TALKING SPECIFICALLY ABOUT ANTICOMPETITIVE BEHAVIORS. >>DO YOU THINK BREAKING THEM UP, MAKING FACEBOOK COMPETE AGAINST INSTAGRAM WOULD HELP IN THAT RESPECT? >>IT’S REALLY HARD TO SAY. HISTORY OF ANTITRUST WOULD SAY THAT THESE INVESTIGATIONS LAST LIKE 7 TO 10 YEARS OR SOMETHING LIKE THAT AND BASICALLY NOTHING HAPPENS. I AM NOT TOTALLY SURE. I AM NOT A REGULATOR. I THINK A LOT CAN CHANGE IN THE 7 TO 10 YEARS THAT THIS PROCESS WILL TAKE. >>YOU GUYS HAVE THIS PROJECT WHICH WAS TALKING ABOUT ALL THE WAYS FACEBOOK HAD MADE ANTICOMPETITIVE BEHAVIORS, I WILL NOT ASK ABOUT EXACTLY WHAT WAS IN IT. BUT WHY DID YOU MAKE THAT? >>I DIDN’T MAKE IT. OUR LEGAL TEAM PUT IT TOGETHER. I THINK BECAUSE THEY KEPT HEARING FROM OUR PARTNERS ALL THE THINGS FACEBOOK WAS DOING AND IT WAS SO MANY PEOPLE COULDN’T REMEMBER IT ALL. THEY STARTED WRITING THEM DOWN. THAT WAS MANY YEARS AGO. IT’S HARD TO SAY SPECIFICALLY. >>DO YOU THINK THEY CONTINUE TO SUPPRESS YOUR GUYS CONTENT? >>IT’S HARD TO SAY. I WOULD PROBABLY BE STUPID TO TALK ABOUT IT HERE.>>I’M WAITING.>>OKAY, OKAY, OKAY. FINALLY LET’S TALK ABOUT THIS. SNAPCHAT HAS DONE A LOT BETTER RECENTLY. THAT MEANS YOU HAVE GROWN A LOT AS WELL. YOU HAVE GIVEN SOME ADVICE TO OTHER ENTREPRENEURS. RECENTLY YOUR ADVICE WAS DON’T GO PUBLIC. WHAT DID YOU MEAN BY THAT? >>I THOUGHT THAT WAS PRETTY STRAIGHTFORWARD. >>DO YOU THINK YOU WENT PUBLIC TOO EARLY OR WHAT? >>I THINK THE PROCESS OF GOING PUBLIC IS ACTUALLY AN INCREDIBLY IMPORTANT PROCESS FOR A BUSINESS. IT BRINGS A LOT OF DISCIPLINE. IT IS REALLY CHALLENGING. ONE OF THE THINGS YOU ARE SEEING TODAY IS GIVEN I GUESS WHAT I WOULD CALL THE RISK FREE RATE OF CAPITAL, GIVEN THE FACT THAT IT IS SUPPRESSED FOR SO LONG, I THINK BUSINESSES HAVE BEEN BUILT TAKING ADVANTAGE OF THE FACT THAT MONEY IS FAIRLY INEXPENSIVE. I THINK IT CAN BE CHALLENGING TO GROW A BUSINESS WITH CAPITAL THAT’S NOT VERY EXPENSIVE AND TRANSITION INTO A PUBLIC MARKET THAT HAS A VERY DIFFERENT SET OF METRICS FRANKLY AND THAT IS LOOKING FOR A BUSINESS THAT CAN SCALE DO YOU REMEMBERABLY OVER TIME. I THINK WE HAD TO PROVE THAT TO THE MARKET. I DON’T THINK THERE IS ANY SHORT CUTS. YOU HAVE TO BUILD TRUST THROUGH EXECUTION AND BY EXPLAINING TO PEOPLE WHAT YOU ARE TRYING TO DO AND THEN DOING IT. FOR EXAMPLE LAST YEAR WE LAUNCHED RESIGN WE THOUGHT WAS IMPORTANT FOR OUR COMMUNITY. WE TALKED ABOUT WHAT WE WOULD DO. WE SAID THERE WILL BE SHORT TERM NEGATIVE IMPACT, WE THINK. SURE ENOUGH, THERE WAS. NOW I GUESS FAST FORWARD A YEAR OR SO AND IT IS CLEAR THAT THAT HAS A POSITIVE IMPACT ON OUR BUSINESS. I THINK GOING THROUGH EVENTS LIKE THAT HELP BUILD TRUST WITH INVESTORS THAT REALLY ARE COUNTING ON YOU TO GROW YOUR BUSINESS AND GROW THEIR INVESTMENT. >>WHY SAY DON’T GO PUBLIC IF YOU SAY IT’S SO GOOD FOR COMPANIES TO LEARN THE TRANSITION? >>TRYING TO MAKE A JOKE. >>OKAY. LASTLY, YOU MAKE A LOT OF MISTAKES WHEN YOU ARE A PUBLIC COMPANY, DOING YOUR FIRST TIME IN THE SEAT BUT YOU HAVE OBVIOUSLY GROWN SO MUCH, THE SHARE PRICE HAS. WHAT’S THE BIGGEST MISTAKE YOU USED TO MAKE THAT YOU DON’T MAKE ANYMORE?>>I THINK THE BIGGEST THING THAT’S CHANGED AS A BUSINESS IS REALLY THE WAY THAT WE RUN THE DIFFERENT AREAS OF OUR BUSINESS. WHAT I MEAN IS BEFORE I THINK OUR ORGANIZATION WAS MORE HIERARCHICAL. THE COMPANY WAS SMALL AND THAT WORKED WELL. I COULD MEET WITH ONE OF OUR TEAM MEMBERS AND THEY CAN SORT OF PASS ON THE MESSAGE AND COLLABORATE WITH THE TEAM. WHAT I NOTICED IS AS IT GOT BIGGER, THE GAME OF TELEPHONE, YOU DON’T BENEFIT FROM THE AMAZING PERSPECTIVES ON THE TEAM. TODAY IF WE HAVE A MEETING, WE BRING THE WHOLE TEAM TOGETHER AND HASH OUT ISSUES. I THURSDAY INTO FRIDAY THAT’S BEEN MORE EFFECTIVE AT RUNNING THE BUSINESS EFFICIENTLY AND GETTING EVERYONE’S PERSPECTIVE. >>USA UP. TO QUICKLY RECAP, HE THINKS IT MIGHT BE 10 YEARS UNTIL WE HAVE CONSUMER A.R. GLASSES PRODUCT BUT SNAPCHAT MIGHT BE ABLE TO DEFEAT BIG SPENDERS LIKE APPLE. AS THE CONTENT IN OUR WORLD SHIFTS FROM BEING PURELY BIOGRAPHICAL TO MORE SOCIAL ENTERTAINMENT THERE ARE OPPORTUNITIES TO INVEST THERE. I HOPE TO SEE MORE OF THAT AND DISCOVER. IN TERMS OF BEING COPIED, IT MIGHT BE THE SAME THING FACEBOOK HAS BUILT FOR TEN YEARS RUNNING SINCE POKE, AT LEAST YOU THINK THEY HAVE A NICE LOGO. WITH STREAKS, YOU ARE TRYING TO REWARD FRIENDSHIP AND MAKE SURE PEOPLE HAVE CLOSE CONNECTIONS. I THINK WE NEED TO LOOK DEEPER ABOUT WHAT’S GROWTH HACKING AND WHAT’S ACTUALLY GOOD FOR PEOPLE. BECAUSE AS YOU SAID PEOPLE CONFUSE THEIR SOCIAL MEDIA FRIENDS FOR REAL FRIENDS. I HOPE PEOPLE DON’T CONFUSE STREAK FRIENDS FOR REAL FRIENDS. YOU MIGHT NOT BE SURE WHETHER EMF WAVES ARE REALLY DANGEROUS, THE FACT IS THERE IS STILL A LOT OF THINGS THAT ARE HARMING PEOPLE IN SOCIAL MEDIA AND SUPPRESSING OTHER PEOPLE’S CONTENT LIKE YOU THINK FACEBOOK HAS DONE IN THE PAST AND CREATING COMPETITION OR LACKING COMPETITION THAT SPURS THAT KIND OF CHANGE IS REALLY IMPORTANT. SO WE NEED MORE OF THAT COMPETITION, WHETHER THAT’S A BREAK UP OR NOT. IT MATTERS ABOUT IS THERE BETTER COMPETITION TO FORCE BETTER FEATURES FOR USERS. AS YOU HAVE SAID, RISK FREE CAPITAL MAKES IT TOUGH TO GROW SUSTAINABLE BUSINESS AND YOU NEED TO LEARN TO TRANSITION. HOPEFULLY THOSE MARKETS WILL COME BACK TO FOCUS AND PEOPLE WILL BE MORE DISCIPLINED ABOUT HANDING OUT THEIR MONEY. WHEN IT COMES DOWN TO IT FOR ENTREPRENEURS IF YOU WILL GET THROUGH THE STRUGGLES AND GO FROM $5 TO $15 OR FROM NOTHING TO THE STAGE, YOU HAVE TO BUILD WHAT YOU LOVE. THANKS A LOT. [ APPLAUSE ] >>HIT IT, HIT IT. OKAY. THAT WAS TENSE THERE FOR A MINUTE. THE EYE CONTACT GOT ME. I HAVE WAS LIKE THIS IS DEAD AIR. OUR NEXT GUEST IS NOT ONLY ONE OF THE MORE CHARMING PEOPLE I HAVE MET THIS WEEK BUT SHE MAKES ME A LITTLE BIT INSECURE BECAUSE SHE’S [BLEEP] COOL. WITH THAT, PLEASE WELCOME HER TO THE STAGE AND YOUR MODERATOR.>>THANK YOU. >>I AM REALLY GLAD THAT JORDAN SAID BEFORE HE CAME OUT BECAUSE WE HAD A CONVERSATION WHETHER OR NOT IT WAS OKAY TO SWEAR. >>I DIDN’T NOTICE BECAUSE I WAS LIKE DON’T RAISE PEOPLE’S EXPECTATIONS. I WANT THE BAR AS LOW AS POSSIBLE SO YOU CAN IMPRESS. >>I THINK WE’VE GOT SOME GREAT VIDEOS TO SHOWCASE, GENERAL COOLNESS. THE NICE THING ABOUT THIS IS USUALLY WHEN I SIT ON STAGE, I GIVE A LITTLE BIT OF A PREAMBLE, EXPLAIN TO THE AUDIENCE WHAT THE PERSON DOES. BUT WE’VE GOT SOME VIDEOS TO DO THE HEAVY LIFTING. LET’S ROLL VIDEO NUMBER ONE. I THINK THIS WILL GIVE YOU, FOR THOSE IN THE AUDIENCE WHO AREN’T SUPER FAMILIAR WITH WHAT SIMONE DOES, THIS IS KIND OF THE THING YOU ARE KNOWN FOR. WHAT ARE WE WATCHING? >>WE ARE WATCHING ME IN MY OLD ROOM ON VALENCIA STREET. I JUST PROGRAMMED A ROBOT ARM TO SERVE ME BREAKFAST. I STARTED MAKING ROBOTS AND IT KIND OF JUST GREW ON THE INTERNET AND REDIT TOOK ME UNDER ITS WINGS IN THIS SWEET WAY. I HAVE BEEN A FULL TIME INVENTER OF MORE OR LESS USELESS THINGS FOR FOUR YEARS. >>DID YOU SET OUT TO MAKE USEFUL THINGS AND THEY DIDN’T WORK OUT AS ANTICIPATED. >>NO. I PLANNED EXACTLY HOW I WANTED THINGS TO GO WRONG. IT WAS MOSTLY LIKE THIS BACKWARDS WAY OF TAKING THE PRESSURE OFF MYSELF. I REALLY WANTED TO LEARN ABOUT ELECTRONICS, ABOUT HARDWARE AND ROBOTICS. I DIDN’T WANT TO GO BACK TO SCHOOL. I AM ALSO SOMEBODY WHO STRUGGLES WITH PERFORMANCE ANXIETY. I AM LIKE HOW CAN I APPROACH THESE DAUNTING TOPICS WITHOUT HAVING MY PERFORMANCE ANXIETY IN THE WAY. THIS ALMOST HACK I DID ON MYSELF WAS JUST I AM GOING TO BUILD USELESS THINGS THAT ARE FUNNY. IT HELPED BECAUSE IT WAS NO PRESSURE. I AM SENSING A THEME, SETTING THE BAR AS LOW AS POSSIBLE. ONCE PEOPLE KNOW YOU FOR MAKING THINGS PURPOSELY MALFUNCTIONING, IT’S WHAT THE WORSE THAT CAN HAPPEN? IT WILL WORK AS ANTICIPATED. >>YOU KIND OF SHIFT THE DEFINITION OF MY DEFINITION OF WASN’T SOMETHING THAT DIDN’T WORK WELL. MY DEFINITION OF BECAME SOMETHING THAT MAYBE WASN’T AS FUN AS I WANTED IT TO BE. IT’S REALLY LIKE I WANTED TO CREATE THESE ENVIRONMENTS WHERE I CAN PLAY AND EXPLORE AND BE CURIOUS. I THINK THAT GOES FOR SO MANY CONTEXTS. ONE APPROACH IS TO REALLY LOWER THE BAR AND BE LIKE ANYTHING GOES, YOU CAN DO ANYTHING. EVERYTHING IS OKAY. THEN YOU KIND OF CAN’T FAIL. >>LET’S TAKE THE EXAMPLE OF THE FIRST VIDEO. WAS THAT THE WAY YOU EXPECTED IT TO BE? HOW MUCH WIGGLE ROOM DO YOU HAVE IN SHITTINESS AS IT WERE? >>THAT’S SUCH A GOOD QUESTION. HOW MUCH WIGGLE ROOM DO YOU HAVE FOR SHITTINESS? >>MAYBE A BETTER WAY OF FRAMING IT WAS HOW CORE GRAPHED WAS THAT SPECIFIC VIDEO? >>COMPLETELY. I PLANNED EXACTLY HOW I WANTED TO BE IT’S VERY THOUGHT THROUGH SHITTINESS. IT’S ALSO SOMETHING I HAVEN’T. THE PROBLEM WAS LIKE OH HIT, PEOPLE ON THE INTERNET HAVE STARTED CALLING ME QUEEN OF ROBOTS. HOW DO YOU BRANCH FROM THAT AND BROADEN WHAT YOU DO AND HOW DO YOU DO THINGS THAT TAKE THEMSELVES SERIOUSLY WHEN THAT’S THE PLATFORM AND THE MESSAGING YOU BUILT? >>DO YOU FEEL LIKE YOU HAVE KIND OF PAINTED YOURSELF INTO A CORNER BY BEING THE AFORE MENTIONED QUEEN OF ROBOTS? >>I WAS WORRIED ABOUT IT. I WAS LIKE I CAN’T GET OUT OF THIS PIGEON HOLE. I PUT MYSELF IN A PIGEON HOLE. THAT’S GOOD IN MANY WAYS. IT’S AN EASY STORY TO TELL. OH THAT’S THE GIRL WHO BUILDS ROBOTS. AS SOON AS YOU MAKE YOUR MESSAGING MORE COMPLEX, IT’S A TRICKY TRANSITION TO MAKE BUT I FEEL LIKE, I DON’T KNOW, I HAVE THE BEST PEOPLE FOLLOWING ME AND ARE SUPER UNDERSTANDING. I THINK MOST PEOPLE WHO DO WORK IN HARDWARE OR ELECTRONICS OR ROBOTICS, THEY UNDERSTAND THESE THINGS ARE HARD TO DO. THERE IS THOUGHT AND >>>SO AGAIN GETTING BACK TO THAT FIRST VIDEO HOW MANY TAKES DOES SOMETHING LIKE THAT TAKE? >>THE BREAKFAST MACHINE? >>YEAH. >>I THINK I DID 20 TAKES. >>YEAH. >>SO THERE’S AN ART TO GETTING JUST AS YOU WANT TO. >>YEAH, TOTALLY. THERE’S A LOT OF THOUGHT THAT GOES INTO IT.>>IT MUST BE WHEN A WORK SHOP REACHES OUT TO YOU AND NEW ZEALAND SPECIAL EFFECTS CREW THAT DID LIKE LORD OF THE RINGS THIS LIKE HUGE I THINK WE HAD THEM INVOLVED WITH GEMINY MAN AND WILL SMITH ON THE STAGE WHEN SOMEONE LIKE THAT APPROACHES YOU IT MUST FEEL LIKE YOU’RE ON THE RIGHT TRACK. >>I MEAN IT’S MOSTLY JUST FUN. I JUST WANT TO EXPLORE AND DO THINGS AND FIND THE CONTEXT IN WHICH I’M MOST COMFORTABLE AND LIKE ON WHAT SCALE YOU WANT TO WORK BECAUSE WHEN YOU ARE DOING YOUTUBE EITHER YOU COULD STICK WITH JUST BEING YOURSELF IN YOUR LIVING ROOM OR AS YOU GROW YOU COULD EXPAND AND HAVE A STUDIO YOU’RE WORKING IN AND PEOPLE HAVE YOUTUBE CHANNELS AND LIKE 100 EMPLOYEES WHICH IS JUST CRAZY SO IT’S ALL ABOUT FINDING THE LEVEL ON WHICH YOU’RE MOST COMFORTABLE AND WHEN YOU FEEL YOUR BEST BUT IT’S REALLY FUN TO HAVE COMPANIES THAT I RESPECT AND THAT I LOOK UP TO WILLING TO WORK WITH ME LIKE WETTER WORK SHOP. BUT YOU’RE ALSO LIKE WHAT DO YOU WANT TO DO, WHAT DO YOU WANT TO BUILD, WE CAN DO ANYTHING AND IT’S REALLY–IT’S STILL HARD TO–I FEEL LIKE PEOPLE ARE MORE DOWN WITH DOING SILLY STUFF THAN THEY WERE IN THE BEGINNING. I USED TO WORK IN AN ELECTRONICS COMPANY AND MY JOB WAS TO FIND FUN THINGS TO BUILD WITH OUR PRODUCT AND I REMEMBER THAT I WANTED TO BUILD A POPCORN CATAPULT AND ONE OF THE ENGINEERS WAS LIKE BUT WHY AND I WAS LIKE OKAY, MAYBE NOT THEN AND I STILL GET THAT. I JUST GET NERVOUS PITCHING THESE RIDICULOUS IDEAS BUT WITH WETTER WORK SHOP WHO MAKE MOVIE PROPS. >>THEY SAID WE CAN MAKE YOU ANYTHING YOU WANT. >>ANYTHING. AND I WANTED TO BE A MANTIS RAMP. >>LET’S ROLL VIDEO NUMBER TWO. IT SOUNDS LIKE THEY ASKED YOU AND YOU PANICKED A LITTLE BIT. >>YEAH, TOTALLY. IT WAS TOO INTIMIDATING AND I JUST WANTED TO, YEAH, SO THIS IS ME ON A BEACH IN NEW ZEALAND DANCING IN A MANTIS SHRIMP COSTUME THAT WE MADE. BUT YEAH THEY WERE SUPER GOOD ABOUT IT. ALSO PEOPLE IN THE MOVIE INDUSTRY ARE ACCUSTOMED TO WEIRDNESS MORE THAN OTHER ONES MAYBE. SO YEAH. >>IS THIS SOMETHING NOT BUSINESS MANTIS SHRIMP NECESSARILY BUT IS THIS SOMETHING THAT YOU ARE INTERESTED IN PURSUING FURTHER? >>I MEAN, NOT WHERE I’M GOING FOR. IT’S FUN AND IT’S KIND OF LIKE I JUST WANT TO USE THE PLATFORMS THAT I HAVE AS AN EXCUSE TO EXPLORE THESE DIFFERENT TOPICS THAT I’M REALLY INTERESTED IN AND THAT’S REALLY IT. IT ALL JUST BECOMES THIS EXCUSE TO SPEND TIME ON THINGS. AND ALSO TO KIND OF USE IT AS A WAY TO EXPLORE AND DO STUFF THAT YOU WANT TO DO. AND I MEAN, THIS WAS REALLY ONE OF THE BEST EXAMPLES OF THAT BECAUSE I LIKE EVER SINCE I GREW UP I WANTED TO HAVE TO MAKE THINGS AND ACTUALLY LIKE BE A REAL INVENTER OF ACTUAL THINGS AND YOU HAVE–I HAD THIS YOUTUBE CHANNEL AND THESE PLATFORMS AND I WAS LIKE I CAN ACTUALLY DO THAT NOW AND HAVE A LITTLE BIT OF A LEAD BECAUSE I HAVE A LOT OF PEOPLE ALREADY LOOKING AND BEING INTERESTED IN WHAT I’M DOING BUT IT WAS REALLY HARD TO BE LIKE I’M KNOWN FOR DOING SILLY THINGS AND ROBOTS AND ALL OF THESE LIGHT HEARTED YOUTUBE CONTENT AND NOW I WANT TO DO THIS PRODUCT THAT IS SOMETHING THAT TAKES THIS SO SERIOUSLY AND IT WAS JUST SO HARD TO MESH THOSE. >>DO YOU FEEL LIKE YOU’RE AT SORT OF A CROSS ROADS NOW? ARE YOU AT A POINT WHERE YOU’RE MAKING IT SORT OF A TRANSITION INTO THE NEXT PHASE OF YOUR CAREER THAT BEING PRODUCT DESIGN? >>YEAH. I MEAN IT’S MOSTLY–IT’S LIKE- -IT’S HARD ONLY DOING YOUTUBE. I THINK I WOULD GO CRAZY IF ALL I DID WAS SOCIAL MEDIA BECAUSE IT’S LIKE IT’S–I MEAN, I THINK WE ALL FEEL THE TOLL THAT SOCIAL MEDIA IS TAKING US ON OUR WELL BEING AND BEING SOMEBODY WHO IS LIKE I THINK HONESTLY IF I DIDN’T WORK WITH SOCIAL MEDIA I WOULD HAVE DELETED MY INSTAGRAM BY NOW BECAUSE IT MAKES YOU FEEL BAD AND I’M LIKE AM I PART OF THAT AND AM I MAKING OTHER PEOPLE FEEL BAD OR YOU KNOW IT’S JUST LIKE THERE’S THIS–SOMETHING WHERE I’M LIKE I CAN’T DO ONLY THIS. I NEED OTHER STUFF TO DO AND ALSO BUSINESS WISE YOU NEED TO HAVE MORE LEGS TO STAND ON BECAUSE WHO KNOWS. THE ENVIRONMENT OF SOCIAL MEDIA OR OF YOUTUBE OR A PATRON WHICH ARE ALL OF THESE CORSE IN OUR BUSINESS OR IN THE BUSINESS THAT I’M CURRENTLY RUNNING ANYTHING CAN CHANGE. AND IT’S REALLY IT CAN CHANGE ON SUCH SHORT NOTICE AND THEY MIGHT JUST LIKE CHANGE THE ALGORITHM AND IT MESSES UP YOUR ENTIRE BUSINESS SO I WANT TO MAKE SURE TO DIVERSIFY AND PUT ALL OF MY EGGS IN MORE BASKETS AND DOING PRODUCTS IS SOMETHING I CAN IMAGINE DOING UNTIL I’M 80 YEARS OLD. >>SO AS OF THIS MORNING WHEN I CHECKED YOU HAVE 1.93 MILLION YOUTUBE SUBSCRIBERS. >>UH HUH. >>HOW HAS THAT PLATFORM BEEN AS FAR AS GETTING YOUR BRAND OUT IN FRONT OF PEOPLE? >>IT’S BEEN GOOD. LIKE, YEAH, IT’S GREAT. I’M SO GRATEFUL FOR THE OPPORTUNITIES IT’S GIVEN ME AND ALSO WE RAN A KICK STARTER CAMPAIGN FOR THIS AND IT’S LIKE ANY AYES YOU CAN GET HELPS ON YOUR PRODUCTS AND PEOPLE WERE JUST VERY–I MEAN IT’S ALSO PEOPLE ARE CURIOUS ABOUT WHAT IT’S LIKE TO MANUFACTURE A PRODUCT AND GO THROUGH DEVELOPING A HARDER PRODUCT. SO IT ACTUALLY MESHED REALLY NICE LEACH AND I THINK THAT’S SOMETHING YOU SEE A LOT ON YOUTUBE IS PEOPLE BECOMING INCREASINGLY ENTREPRENEURIAL AND HAVE RUN THESE BIG COMPANIES THAT ARE KIND OF PLAYING WITH YOUTUBE OR PLAYING NICE WITH YOUTUBE AND THERE’S A LOT OF SYNERGIES TO USE A TECH WORD. >>WE DIDN’T INVENT IT BUT IF YOU EVER NEED TO DISRUPT ANYTHING. >>OKAY. TO DISRUPT THE SOCIAL MEDIA PLATFORM AND FIND OTHER BUSINESSES THAT HAVE A LOT OF SYNERGY EAGZ IN IT. SO IT HELPS. IT DEFINITELY GAVE A KICK TO OUR KICK STARTER CAMPAIGN. >>SO YOU FEEL THAT AGAIN AS YOU’RE KIND OF TRANSITIONING TO THIS WORLD OF PRODUCT DESIGN AND YOU’RE HOPING THAT PEOPLE ARE TAKING YOU SERIOUSLY IN THAT WORLD. ARE THESE TWO PARTS THAT CAN OPERATE CONCURRENTLY. CAN YOU CONTINUE TO BE THE YOUTUBE ROBOT PERSON AND BE IN CHARGE OF A DESIGN FIRM? >>I THINK SO. IT’S WORKING OUT SO FAR. THIS WAS LIKE I MEAN THERE’S NO WAY THIS IS ONE OF THE PRODUCTS THAT I CAN DO THAT WAS THE BIGGEST MOST STARK CONTRAST TO WHAT I WAS DOING OTHERWISE. SO THIS IS A CALENDAR FOR TRACKING YOUR HABITS AND I STILL DO NOT KNOW HOW TO TALK ABOUT THIS WITHOUT SOUNDING LIKE A MOTIVATIONAL POSTER BUT IT’S A GOLD STAR SYSTEM AND I WANTED TO MEDITATE EVERY DAY AND WAS MAKING GRIDS AND NOTEBOOKS AND CROSSING OUT BOXES AND I WAS THINKING COULD I MAKE SOMETHING THAT I COULD HANG ON MY WALL THAT LOOKS PRETTY AND FEELS LIKE A TREAT WITH A MORE FUN ACTION THAN CROSSING OUT A BOX SO EVERY TIME I MEDITATE I GET TO DO THAT. I DON’T KNOW IF YOU CAN SEE BUT THESE LEDS ARE LIT UP SO TODAY IS OCTOBER 4 SO WHEN I MET TATE I TAP THAT DATE AND THAT’S IT. AND IT WAS SUPER HARD TO TALK ABOUT THIS BECAUSE I’M LIKE OH I DO ROBOTS AND CUSS A LOT AND SUDDENLY YOU HAVE SOMETHING LIKE THIS. >>THIS IS SO SERIOUS AND ABOUT SELF IMPROVEMENT AND PEOPLE ARE SO GOOD AND UNDERSTAND THAT YOU’RE A PERSON WITH A WIDER SPECTRUM OF CAPABILITIES OR THOUGHTS THAN MAYBE YOU SEE IN YOUR YOUTUBE VIDEOS. >>WALK ME THROUGH THAT PROCESS A LITTLE BIT. HOW DO YOU GO FROM THE WORK SHOP? I ASSUME A CERTAIN STANDPOINT THIS STARTS OFF IN A SIMILAR WAY TO OTHER THINGS. SO HOW DO YOU MAKE THE TRANSITION INTO ACTUALLY CREATING A PRODUCT FOR PEOPLE IN THE WORLD TO USE? >>I MEAN, IT’S SO MAKING- -BECAUSE USUALLY WHEN I MAKE PROJECTS FOR A VIDEO I MAKE ONE PROTOTYPE AND IT’S MY FAVORITE PART OF THE PROCESS MAKING THE INITIAL PROTOTYPES BUT THEN PROTOTYPING FOR MANUFACTURING IS LIKE THEY’RE NOT EVEN COUSINS. THEY’RE SO UNRELATED. JUST HOW DIFFERENT OF A PROCESS IT WAS. SO I PUT TOGETHER A ROUTINE TO KIND OF GO THROUGH THIS BUT WE–YEAH, DID IT ALL THROUGH KICK STARTER WHO SHOULD BY THE WAY TOTALLY ACKNOWLEDGE THE UNIONIZEATION EFFORT. YEAH, THANK YOU. >>JOHN AGREES WITH YOU. >>YEAH. >>HOW WAS THE KICK STARTER PROCESS? I ASSUME IT’S GOOD FROM THE STANDPOINT OF REALLY KIND OF BEING ABLE TO GAUGE THE TEMPERATURE AND BEING ABLE TO REALLY KIND OF UNDERSTAND WHAT PEOPLE ARE INTERESTED IN GETTING THAT INSTAN CONTAINOUS FEEDBACK. >>WHAT ARE YOU. >>THE KICK STARTER PROJECT, HOW WAS THAT AS A TOOL FOR LAUNCHING THE PRODUCT? >>IT WAS GREAT. IT WAS REALLY THE WAY TO GO FOR US I THINK. BECAUSE WE COULD HAVE RAISED CAPITAL AND STUFF LIKE THAT BUT ALSO I WANTED TO TEST AND SEE IF PEOPLE WERE INTERESTED IN IT AND IT’S SUCH A–YEAH, IT’S SUCH A GOOD WAY OF DOING THAT AND TESTING THE MARK MARKET AND OBVIOUSLY THE LONG GAME IS HOPING TO BE ABLE TO LAUNCH OUTSIDE OF THAT. >>SO THIS PRODUCT IS SOMETHING THAT IS GOING TO HOPEFULLY CONTINUE TO EXIST BEYOND THAT INITIAL ROUND. >>YEAH. IT’S WHAT WE ARE WORKING TOWARDS. KICK STARTER I THINK OURS IS BREAK EVEN WHICH IS FAIRLY REMARKABLE SURPRISINGLY ENOUGH FOR A KICK STARTER BUT DEFINITELY I WANT TO KEEP ON SELLING IT OUTSIDE AND TO HAVE IT EXIST IN THE WORLD WITHOUT MY FACE NECESSARILY. SO NOT JUST SPAM MY FOLLOWERS ABOUT IT BUT KIND OF GO OUTSIDE AND SELL IT TO OTHER PEOPLE. >>I GET THE FEELING THAT THIS TOOK ON A LITTLE BIT OF A DIFFERENT MEANING. I KNOW YOU’VE HAD HEALTH STRUGGLES OVER THE PAST COUPLE OF YEARS SO THIS IDEA OF HAVING THIS DAILY THING THAT YOU GO BACK TO THIS DAILY REMINDER IT TOOK ON A LITTLE MORE GRAVITY IT SOUNDS LIKE. >>YEAH. SO I HAD BRAIN SURGERY LAST YEAR AND FOUND OUT THAT I HAD A BRAIN TUMOR AND DEFINITELY HAD A LONG WAY TO RECOVERY BUT I’M DOING OKAY. AND IT’S LIKE GOING THROUGH SOMETHING OF THAT REALLY HELPS REENSURE HOW IMPORTANT IT IS TO TAKE CARE OF YOURSELF AND ANYTHING YOU CAN DO TO HELP AND I WAS REALLY GRATEFUL GOING THROUGH THAT THE TIME THAT WAS SPENT TAKING CARE OF MY BODY AND TRYING TO SUPPORT IT AND WHAT IT WANTS OR TRYING TO EAT WELL AND EXERCISE AND SLEEP AND GOING THROUGH SOMETHING LIKE THAT I FELT LIKE I GOT TO REAP SOME OF THE BENEFITS OF THAT AND IT’S JUST LIKE IT’S SO IMPORTANT. I THINK WE ALL GO THROUGH THE WORLD THINKING IT WOULDN’T HAPPEN TO US AND SUDDENLY IT DOES AND THEN YOU JUST GOT TO MAKE SURE YOU HAVE A GOOD RELATIONSHIP TO YOUR BODY. >>DID THAT MAKE IT EVEN MORE IMPORTANT TO GET THIS OUT THERE? DID YOU FOCUS ON THIS EVEN MORE AS YOU WERE GOING THROUGH THAT? >>I MEAN, MORE SO IT WAS JUST SUCH A GOOD BREAK POINT FOR ME AND RECONSIDERING EVERYTHING THAT I WAS DOING BECAUSE I LOVE MAKING SILLY THINGS AND I LOVE MAKING NULLY ROBOTS AND ALL OF THAT BUT IT’S ALSO I WANT TO DO OTHER THINGSZ. SO IT KIND OF JUST YOU JUST RECONSIDER AND YOU’RE LIKE I HAVE ALL OF THESE THINGS I WANT TO DO AND PUSHED ME INTO MY COMMITMENT. I ALWAYS DREAMT ABOUT HAVING A PRODUCT DESIGN COMPANY. OF COURSE I SHOULD DO THAT. I SHOULDN’T WAIT WITH DOING THAT. >>ARE YOU THINKING ABOUT THE NEXT PRODUCT? >>I’VE FORBIDDEN MYSELF FOR THINKING ABOUT MORE PRODUCTS UNTIL WE SHIP THESE OUT TO BACKERS SO WE’RE STILL FULFILLING OUR KICK STARTER ORDERS AND I’M JUST LIKE I CAN’T THINK OF OTHER THINGS UNTIL WE’VE TAKEN THIS OVER THE LINE. BUT YES, OF COURSE. IT’S HARD NOT TO. >>IS THERE ANY LIKE BIG LESSON THAT YOU’VE LEARNED IN CREATING THIS AGAIN FOR MAKING THIS PRODUCT THAT YOU WOULD LIKE TO IMPART ON PEOPLE? ANY MISTAKE THAT YOU MADE THAT PERHAPS YOU WOULD LIKE TO SEND UP A FLAG ON? >>JUST TRANSPARENCY IS THE WAY TO GO. >>YEAH. >>I THINK YEAH IN COMMUNICATION WITH EVERYBODY AND WITH IT’S LIKE WE’RE NOT TRYING TO MAKE IT SEEM LIKE WE’RE SOMETHING THAT WE’RE NOT OR THAT WE’RE AT A PLACE THAT WE’RE NOT THERE’S DYE BEEN TIMES WHERE WE’RE LIKE THIS JUST HAPPENED HOW DO WE COMMUNICATE THIS AND I JUST WANT TO BE HONEST WITH PEOPLE AND I THINK THAT EVEN THOUGH THAT’S SOMETIMES THE HARDER THING TO SAY IT DEFINITELY MAKES FOR THE BETTER RELATIONSHIP AND JUST FEEL BETTER ABOUT YOURSELF AS WELL. >>WOULD YOU DO CROWD FUNDING AGAIN FOR A FUTURE PROJECT? >>YEAH. >>YEAH? >>I THINK SO. >>SO WE’VE GOT ONE FINAL VIDEO TO SHOW YOU AND MOST PEOPLE I THINK ARE AWARE THERE IS A TESLA TRUCK COMING. WE EXPECT IT TO BE ANNOUNCED TOWARDS THE END OF THIS YEAR. >>IT GOT PUSHED BACK TO NOVEMBER. >>2020 OR 2021, PROBABLY 2021 IS PROBABLY ABOUT WHEN THIS THING IS ACTUALLY COMING TO MARKET BUT YOU COULDN’T WAIT SO LET’S ROLL VIDEO NUMBER 3.>>IT’S HERE. THE TRUCK THAT THE WORLD DIDN’T KNOW IT WAS WEATING FOR. IT’S THE DAWN OF THE NEW BEGINNING. SOME TRUCKS RELY ON ROADS ALREADY PAVEED. SOME CHOOSE TO PAVE THEIR OWN. PUSH PAST CONVENTION AND POWER YOURSELF BEYOND WHAT’S POSSIBLE. AND IF THE THING YOU WABBIT DOESN’T EXIST YET, YOU STEP UP AND MAKE YOUR OWN. ♪ [ MUSIC ] ♪>>SO THAT’S KIND OF THE BIG TAKE AWAY, RIGHT? IF THE THING YOU WANT DOESN’T EXIST IN THE WORLD GO AHEAD AND MAKE IT YOURSELF. >>MAKE YOUR OWN. AND YOU PUT AN ANGLE GRINDER TO IT WHICH IS ONE OF THE MOST PAINFUL MOMENTS OF MY LIFE. >>HOW LONG DID THIS PROJECT TAKE? >>I MEAN, A YEAR TO PLAN. WE HAD THE IDEA FOR THIS FOR A YEAR AND THE BUILDING TO GET IT TO THIS POINT IT’S STILL NOT DONE. WE’RE STILL WORKING ON IT ON PROOFING IT AND GETTING IT TO THIS POINT WAS PROBABLY A MONTH AND SOME CHANGE OF WORK WITH A BUNCH OF PEOPLE. LIKE IT WAS–IT WAS PROBABLY THE BIGGEST PROJECT I’VE EVER TAKEN ON. >>DO YOU THINK THE PROJECTS ARE GOING TO CONTINUE TO KEEP GETTING BIGGER AS YOU GO ON. >>TO SOME EXTENT AND DO ALL OF THE BIG AND SMALL STUFF. IT’S THE COMBINATION BUT THIS WAS, YEAH. DEFINITELY A MORE AMBITIOUS ONE. OH, THANK YOU. >>THANK YOU SO MUCH. >>THANK YOU. THANKS EVERYONE. >>DO YOU GUYS SEE WHAT I MEAN? JUST COOL. OKAY. 12:30 GETTING A HARDWARE COMPANY OFF THE GROUND ON THE Q AND A STAGE IF THAT IS OF INTEREST. DON’T FORGET IF YOU WANT TO READ ALL OF THE CURSE WORDS YOU’LL FIND THAT ON OTTER.AI. I’LL SEE YOU AFTER LUNCH AT 1:10 IN THESE TEETS. I CAN’T WAIT. >>>AS COMPANIES TRANSITION TO USING MICRO SERVICES IN THEIR ARCHITECTURES MORE APIS ARE CREATED ACROSS THE ORGANIZATION. WITH THIS INCREASE THEY CAN BECOME MORE CHALLENGING FOR DEVELOPERS TO FIND THESE INTERNAL APIS AND REUSE THEM DEVELOPING NEW SOFTWARE. THAT’S WHERE RAPID API FOR TEAMS CAN HELP. ENABLING DEVELOPMENT TEAMS TO PUBLISH THEIR INTERNAL APIS INTO A PRIVATE WORK SPACE. DEVELOPERS CAN FIND ANY INTERNAL API, VIEW DOCUMENTATION, TEST IT AND CONNECT DIRECTLY OR COLLABORATE AND SHARE INFORMATION ABOUT RAPID API. TEAM MEMBERS CAN ALSO SUBSCRIBE TO ANY PUBLIC API AVAILABLE ON THE MARKETPLACE AND THE ENTIRE TEAM CAN SEE AND USE THAT SUBSCRIPTION. THIS WAY YOU ONLY PAY ONCE FOR ANY API YOUR TEAM USES. IT MAKES IT EASIER TO SHARE AND COLLABORATE ON APIS. GET STARTED TODAY ON RAPID API.COM/TEAMS.>>OUR TEAMS LOVE COMPANIES AS WELL AS MEANINGFUL GLOBAL BUSINESSES AND ONLINE CLASSIFIES, FOOD DELIVERY AND PAYMENTS. >>THE TEAM HAVE GREAT EXPERIENCE IN OPERATING AND INVESTING IN LARGE COMPANIES IN INDIA. THEY ARE WELL UNDERSTOOD IN THE CONSUMER BUSINESS AND VERY HEALTH SPECIFIC ADVICE THEY CAN GIVE TO US. >>WE THINK LIKE ENTREPRENEURS. THEY’RE A FANTASTIC PARTNER. >>I BELIEVE THE PERFECT PARTNER TO HELP US ACHIEVE OUR DREAMS. ♪ [ MUSIC ] ♪>>WHY DID YOU COME TO THIS WORK SHOP? TO LEARN. IT’S SMPG THAT HAPPENS VERY INCORRECTLY IN THE PAST AND LIKE ARKOSESIC. >>I WANT TO BE WHERE WE ASK QUESTIONS LIKE WHY AND THE BIG QUESTION I ASK IS WHAT IF. IT’S A DIFFERENT WAY OF THINKING AT STANFORD THAN IT IS AT ANY OTHER UNIVERSITY IN THE WORLD. >>I REALIZED I WAS GETTING STEAL SO I SAID YOU KNOW WHAT IT’S TIME FOR ME TO MOVE ON AND LOOK FOR GREATER THINGS AND HAVE MORE.>>>AT LOCK HEED MARTIN WE’RE ON A MISSION, YOUR MISSION. WHEN MILLIONS OF PEOPLE ARE COUNTING ON YOU, YOU CAN COUNT ON US. TO BUILD THE IMPOSSIBLE. TO INVENT THE INCONCEIVABLE AND SOLVE EVERY PROBLEM WITH SPEED AND RELIABILITY. EVERY MISSION IS AN EXPEDITION OF THE GREATEST IMPORTANCE BOTH TO YOU AND TO US.>>>MONTHS BEFORE THE HARD FOUGHT BATTLE FOR THE SECOND GLOBAL HEADQUARTERS IN QUEENS AMAZON PLANTED A MASSIVE 855,000 SQUARE FOOT FLAG IN STATEN ISLAND. THE CENTER OPENED AFTER AN ON THE SPOT HIRING SPREE EMPLOYING 2,250 PEOPLE. THE SPACE OFFERS A COMPELLING GLIMPSE WHERE HUMANS AND ROBOTS WORK HAND IN HAND SO TO SPEAK. THE COMPANY CURRENTLY HAS 100,000 ROBOTIC SYSTEMS ACROSS 25 FULFILLMENT CENTERS. A NUMBER SAYS IT WILL HELP STORE ADDITIONAL 40% OF INVENTORY IN ITS WAREHOUSES. UP A FETCH FLIGHTS ROBOTS ZOOM ACROSS THE FLOOR IN A TIGHTLY CONTROLLED SPACE. THE MOBILE ROBOTS WERE HARD AT THE COMPANY’S # $75,000,000.2012 ACQUISITION A MASSACHUSETTS BASED START UP LATER NAMED AMAZON ROBOTICS. THE ARMY OF ROBOTS BRING IN NOTHING MORE THAN INDOOR BATTING CAGES. AMAZON EMPLOYEES WORK ALONG SIDE THE ROBOTS TO DETERMINE HOW TO BEST STORE INVENTORY ON THE SHELVING PODS AND HOW ITEMS WILL BE SHIPPED OUT TOGETHER. FENCING AROUND THE ROBOTS IS DESIGNED TO KEEP ASSOCIATES OUT OF HARM’S WAY. HUMANS ARE GENERALLY NOT ALLOWED IN THIS ENCLOSED SPACE BUT AN IMPERFECT SYSTEM REQUIRES THE OCCASIONAL INTERACTION. THESE PODS ROBOTS BREAK DOWN. IT’S FOR THIS REASON THE COMPANY INTRODUCED THE ROBOTIC SAFETY VEST THAT INCLUDES A BELT CONTAINING A VARIETY OF SENSORS THAT ADD A FEW POUNDS TO THE EMPLOYEE’S GET UP. AS MORE PEOPLE BUY PRODUCTS ONLINE THESE ARMY OF PRO BOTTOMS WILL PLAY AN INCREASINGLY CENTRAL ROLE IN MEETING THAT DEMAND. ♪ [ MUSIC ] ♪♪>>>CREATIVE ARTISTS AND START UP INTERPRETERS. >>USE THE WORD COMMUNITY INSTEAD OF COULD WORKING YOU DON’T THINK OF IT AS A REGULAR WORK SPACE. TALK ABOUT THE DIFFERENCE. >>WHAT WE TRY TO DO IS WE BRING DIFFERENT TYPES OF PEOPLE TO GET A DIFFERENT TYPE OF MIND SET. THEY ARE NOT LIKE ONLY WORKING AND GOING OUT. THEY GET INTO PEOPLE MAYBE LIKE THEY ARE LIKE SOME IDEAS POPPING UP LIKE SOME NEW BUSINESS AND THEN THEY GO OUT WITH A NEW MIND SET AND NEW LEARNING CURVE. >>FOR THE COMMUNITY TO US MEANS NOT ISOLATING FROM THE OUTER WORLD OR ESPECIALLY FROM THE GREAT SET-UP ECO SYSTEM WE HAVE. BUT INSTEAD DEEPLY INTEGRATING INTO IT. WE EDUCATE THE DIGITAL OF TOMORROW. WE ARE FOCUSING VERY MUCH ON PROJECTS MEANING THAT OUR STUDENTS DON’T HAVE A FIXED CURRICULUM THAT STAYS LIKE THE SAME OVER THE YEARS BUT INSTEAD WE HAVE A PATH WITH COMPANIES ALSO A LOT OF COMPANIES IN THE FACTORY THAT WE CREATE THESE PROJECTS WITH THAT OUR STUDENTS THEN CAN LEARN ON THESE PROJECTS AND ACQUIRE NEW SKILLS THAT ARE UP TO DATE ALL THE TIME. >>WE ARE A BUSINESS THAT HELPS PEOPLE ALLOCATE PORTFOLIOS AND DIGITAL ASSETS AND FUNDABLE TOKENS AND ORGANIZE A LOT OF EVENTS AND OFTEN HAVE SHOW CASES WHERE WE HAVE THE OPPORTUNITY TO MEET SOME OF THE OTHER COMMUNITY MEMBERS WHERE WE CAN COLLABORATE SO FOR US THERE’S A LOT MORE BENEFITS THAN GOING IN AND HERE’S A DESK AND A WIFI CONNECTION. >>PROJECT BASE LEARNING HAPPENS THROUGH PROJECTS. WITH THE GOAL KIDS ARE HAPPY AND DOING THE LEARNING THEMSELVES. >>HOW DO YOU INTERACT WITH FACTORY. WHAT DOES IT OFFER TO YOUR COMMUNITY. >>WE HAVE FOUND SEVERAL EXPERTS THAT WORK WITH OUR KIDS NOW THROUGH THE FACTORY. THERE’S A MESSAGING APP SPECIFIC TO THE FACTORY WHERE IF WE ARE IN NEED OF SOMEBODY WHO HAS MUSIC TRAINING, SOMEBODY WHO HAS DONE PRODUCTION, OF THE PROJECTS A KID WANTS TO FILM A DOCUMENTARY SO I PUT OUT A MESSAGE SAYING WHO OF YOU IS WORKING ON AN AMAZING PROJECT YOU WANT A DOCUMENTARY FOR AND I GOT SEVERAL RESPONSES BACK WHICH WAS GREAT BECAUSE NOW THIS KID WHO IS 12 GETS TO CHOOSE AND HE GETS TO BE THE ONE TO KIND OF BUTTON UP AND SAY NO, NO, YES I’M GOING TO DO YOU. >>AND IN RETURN DO YOU HAVE TOSIFEN AT LEAST 15% OF THE CHILDREN INTO FACTORY PROGRAMS? >>NO. THERE’S NO FORMAL CONTRACT THAT WE HAVE TO REALLY DO ANYTHING FOR THE FACTORY BESIDES NOT DESTROY THEIR SPACE WHILE WE’RE HERE. >>PIPE IS A DATA TRANSPORT LAYER FOR CONNECTING IOT DEVICES IN A WAY THAT’S SECURE, PRIVATE AND SIMPLE. SO WE’VE BASICALLY FIGURED OUT A NEW WAY OF REWIRING THE INTERNET. WE’VE BEEN MEMBERS HERE FOR JUST OVER TWO YEARS IN THE SUMMER OF 2016. IT’S BEEN VERY USEFUL AND ENCOURAGING FOR US. WE’VE MET INVESTORS THROUGH THIS NETWORK. WE’VE MET ADVISORS, LAWYERS, ACCOUNTANTS, TECHNICAL PEOPLE AND TECHNICAL EXPERTISE AND CALL ON PEOPLE SO WEB DESIGNERS AND THINGS LIKE THAT. IT’S THE FACT YOU MAY BE A STRANGER OR FOREIGNER IN A NEW CITY THERE’S ALWAYS A GROUP OF LIKE MINDED INTELLIGENT INDIVIDUALS AROUND YOU TO HELP AND ENCOURAGE AND ALSO THINGS ARE DIFFICULT TO CONSOLE YOU AND KEEP YOU GOING. >>RIGHT NOW TWO FACTORY LOCATIONS WHEN YOU THINK ABOUT WHAT’S NEXT DOES THAT MEAN OPENING NEW LOCATIONS IN BERLIN OR OTHER CITIES? >>JUST TO GIVE YOU AN OVER VIEW MORE THAN 60% OF OUR COMMUNITY ARE INTERNATIONAL. IT’S LIKE SOMETHING THAT WE COULD CONSIDER BUT THE FOCUS WILL BE HERE TO EXPAND AND TO SHINE HERE IN BERLIN AND GERMANY AS WELL.>>WHAT HAS HAPPENED HISTORICALLY IS WOMEN ARE HAVING ISSUES AND THEN THEY HAVE TO GO IN AND THEN AND ONLY THEN IS THIS TYPE OF TESTING DONE AND SO WE’RE SWITCHING THAT MODEL UP AND OPENING UP TO HALF OF THE POPULATION AND SO WE’RE ABLE TO GET ECONOMIES AT SCALE WITH THAT AND PASS ALL OF THE SAVINGS DOWN TO OUR CUSTOMERS. >>TELL US HOTCH MODERN FERTILITY WORKS EXACTLY. >>THE WAY IT WORKS IS WOMEN COME TO OUR WEBSITE REQUEST A TEST AND EITHER TEST AT HOME THROUGH A SIMPLE FINGER OR A LOCAL LAB. THEY GET THEIR RESULTS BACK IN A FEW DAYS AND GET ACCESS TO THE MODERN FERTILITY EXPERIENCE. >>I STARTED THINKING ABOUT IT PROBABLY A YEAR AGO. I’M IN MY MID 30S. IT’S WHEN YOU START TO HEAR ABOUT SOMETHING YOU SHOULD CONSIDER. THE TEST COMES IN THE MAIL AND THERE’S AN INSTRUCTION SHEET AND IT’S A SIMPLE FINGER AND THEN YOU PUT THIS DROPLET OF BLOOD ONTO A CARD AND MAIL IT BACK IN. YOU’RE TESTING FOR EIGHT DIFFERENT HORMONES INCLUDING ANTI MA LATER YAN HORMONE. >>IT’S A HORMONE SCREEDED BY THE CELLS THAT SURROUND THE OVARIES SO BY MEASURING THE AMOUNT IN YOUR BLOOD IT’S AW PROXY OF HOW MANY EGGS YOU HAVE AT THAT TIME. ONE CONCERN I’VE READ IS YOUR OVARIAN REVERENDS AREN’T DIRECTLY CORRELATED TO CONCEPTION. IT’S THE QUALITY OF THE EGGS VERSUS THE QUANTITY. HOW DO YOU RESPOND TO THAT CRITICISM. >>WHEN YOU THINK OF ANY WOMAN TODAY THERE ARE MANY MORE IMPORTANT THINGS THINKING ABOUT YOUR REPRODUCTIVE HEALTH BEYOND YOUR ABILITY TO GET PREGNANT RIGHT NOTCH SO AMH IS NOT AN ABILITY RIGHT NOW IN THIS MOMENT BUT IT HAS SO MANY OTHER HELPFUL BENEFITS AND THINKING ABOUT YOUR REPRODUCTIVE HEALTH IN A MUCH BROADER SENSE SO WHEN WE STARTED MODERN FERTILITY WE WERE FOCUSED ON STARTING THIS COMPANY AND HELPING WOMEN UNDERSTAND THE ROLE THAT HORMONES PLAY IN YOUR OVERALL REPRODUCTIVE HEALTH. >>INITIALLY I JUST WANT TO KNOW ABOUT MY AMH LEVELS BUT THE RESULTS TOLD ME MUCH MORE THAN THAT. THEY TOLD ME ABOUT MY ESTROGEN AND PRO LACK TIN LEVELS. THERE’S A WEBINAR WITH A NURSE AND SHE WAS THERE TO EXPLAIN WHAT THE RESULTS MEANT, WHY THEY TESTED JUST TO BE AROUND OTHER WOMEN WHO HAD DIFFERENT QUESTIONS THAN ME I LEARNED SO MUCH. >>SO TO BE CLEAR, MODERN FERTILITY ITSELF IS NOT RUNNING THE TESTS. YOU PARTNER WITH CERTIFIED LABS IS THAT CORRECT? >>YEAH SO WE PARTNER WITH ACCREDITED LABS AND WHAT WE’VE DONE IS GONE ABOVE AND BEYOND THE TRADITIONAL LABORATORY STANDARDS IN THE SPACE SO WHAT WE DID IS WE CONDUCTED OUR OWN STUDY AND SHOWED THAT A FINGER COULD BE USED INTERCHANGEABLY WITH A TRADITIONAL BLOOD DRAW. WE ARE PROUD TO ANNOUNCE WE ARE PUBLISHED IN THE TOP OBGYN JOURNAL OF MEDICINE. WE’RE REALLY SHOWING THAT WE BELIEVE IN OUR SCIENCE. WE INVEST SO MUCH IN OUR CLINICAL STRATEGY TO STAND BEHIND EVERY SINGLE RESULT WE’RE PUTTING IN FRONT OF CUSTOMERS.>>>LENSES REMIND ME OF EPIC KUNG FU FIGHT SCENES. TO GET TO PERSPECTIVE ON A TBOAN THIS LITTLE THING, I HAD TO GET MY HANDS ON ONE. THIS LITTLE LENS BRINGS BIG SCREEN CINEMA SCOPE PERSPECTIVE TO MOBILE PHONES VIA A PHONE CASE FOR THE IPHONE, GOOGLE PIXEL OR GAL YAMPY. THIS IS GREAT NEWS FOR THE FILM LOOK. ♪ [ MUSIC ] ♪>>CAN YOU SHOOT A NARRATIVE FILM WITH THIS LENS? YES OF COURSE. GIVEN THAT YOUR WRITING IS ON POINT AND YOU UNDERSTAND THE LIMITATIONS OF THE LENS AND YOUR CAMERA I SEE TWO TYPES OF PEOPLE USING THIS LENS. FIRST WOULD BE THE CASUAL IMAGE MAKER WHO WANTS A VARIETY OF LOOKS AND FOCAL LENGTHS WHILE ON TRIPS OR OUT WITH FRIENDS TO POST ON SOCIAL MEDIA AND THE OTHER BEING FILMMAKERS ON A LIMITED BUDGET SO AFTER USING THE LENS CASUALLY IT’S EASY TO TWIST ON AND START SHOOTING. IT CAN WORK FOR DOCUMENTARY STYLE RUNNING GUN SHOOTING BUT IT’S LIKELY BEST AT CONTROLLED NARRATIVE SHOOTING ENVIRONMENTS. I LOVE MOMENTS OVERALL DESIGN APPROACH AND AESTHETIC. THE LENS IS SIMPLE, ELEGANT AND FUNCTIONAL. IT COMES WITH THE SAME AEROSPACE GRADE METAL AND HIGH END GLASS AS THE OTHER LENSES BUT IT COMES WITH AN ANTI REFLECTIVE COATING TO ACHIEVE THAT MICHAEL BAY LENS FLAIR. IT FEELS HEFTY IN THE HAND. IT’S VERY SOLID. DOESN’T FEEL OR LOOK CHEAP. AND IT’S CERTAINLY DURABLE ENOUGH FOR RIGOROUS MOBILE FILM MAKING SHOES. I WOULD HAVE LIKED A BACK CAP FOR THE LENS BUT I SUPPOSE IT WOULD BE TOO DIFFICULT TO KEEP TRACK OF THIS TINY LITTLE THING BACK HERE. THE LENS IS AWESOME. IT’S VERY EASY TO USE. TWIST IT ON AND SHOOT. SO THE HARDWARE IS GREAT BUT THE SOFTWARE HOWEVER IS ANOTHER ISSUE. WHILE SHOOTING AT 4K AT 240 FRAMES PER SECOND I EXPERIENCED STUTTERING WHILE RECORDING. ALSO WHEN I WENT IN TO EDIT THE VIDEO FILES I NOTICED THE FRAME RATES WEREN’T RECORDED AT THEIR INTENDED FRAME RATES. WHEN SHOOTING PHOTOS THEY WOULDN’T DESQUEEZE EVEN THOUGH THE OPTION WAS TURNED ON. THEY’VE INVESTIGATED FURTHER AND WERE ABLE TO REPLICATE THE ISSUES I WAS HAVING AND ARE HOPING TO RESOLVE THE PROBLEMS WITH THE NEXT UPDATE. THE LENS FLAIR, NOT MUCH TO SAY ABOUT THE LENS FLARE OTHER THAN IT LOOKS FREAKING AWESOME. YOU DO HAVE TO SHINE QUITE A BIT OF LIGHT TO GET THE FLARE TO HAPPEN THOUGH. THERE’S A GREAT MOMENT VERSUS MOON DOG COMPARISON VIDEO OUT BY IPHONE GRAPHERS ON YOUTUBE WHERE THEY GO OVER TO THE FLAIR QUALITY SO MAKE SURE TO CHECK THEM OUT. FOR MOBILE FILMMAKERS THE ABILITY TO SHOOT WIDE SCREEN CINEMA SCOPE STYLE ON A MOBILE DEVICE BRINGS TREMENDOUS VALUE. IT WILL KEEP COST LOW WHILE YOU ARE FEEDING YOUR CAST AND CREW AND NOT ABOUT GETTING GEARED UP. AN AUDIO RECORDING SOLUTION AND LIGHT KIT AND YOU’LL BE SET FOR YOUR NEXT SHOOT. NOW DESPITE ALL OF THE BUGS WITH THE APP THE LENS ITSELF IS WELL MADE EASY TO USE AND PRODUCES NICE IMAGES WITH PHOTO AND VIDEO. WILL THE LENS REPLACE MY DSLR KIT OR A PROPER VIDEO CAMERA SET-UP? NO OF COURSE NOT. IS IT ADEQUATE ENOUGH TO SHOOT A FILM? YES. THE LENS IS ON PREORDER FOR $119 AFTER MAKING OF THIS VIDEO AND WILL START SHIPPING NOVEMBER 208. IT WILL BE $149 THEREAFTER. TO CHECK OUT MORE REVIEWS VISIT TECH CRANNY.COM. ♪ [ MUSIC ] ♪>>>THIS IS MY ORIGINAL GO FIND YOURSELF ON THE ROAD TRIP THAT OCCURRED IN 2008 AND ONE OF THE IDEAS I CAME UP WITH WAS CAPTURE THE ORIGINAL MECHANISM BUT ANOTHER THING IS THIS CIRCLE HERE, HERE AND HERE AND THESE FOUR CIRCLES THAT DON’T PLAY INTO EACH OTHER AT ALL AND A BUNCH OF KNOBS EVERYWHERE AND THIS THICK WIDE DIAMETER MECHANISM ALMOST ALL OF WHICH IS NEGATIVE SPACE AS LIKE ONE OF THE PRINCIPAL ACCESSORIES CAMERA ACCESSORIES FOR ANY PHOTOGRAPHER BEING THE TRIPOD I’VE BEEN OBSESSED WITH THIS IDEA OF REMOVING ALL OF THAT NEGATIVE SPACE. FOR YEARS I WAS IN INDIA LIKE SITTING AT THIS CAFE LOOKING AT THIS TRIPOD AND I DREW A SKETCH OF A CIRCLE AND A CENTER COLUMN IN THE MIDDLE OF IT AND ALMOST LIKE PIE WEDGES. AND EVERYTHING JUST FOLDS INTO EACH OTHER BEAUTIFULLY. SO THAT’S THE TRIPOD THAT WE DREAMED ABOUT A LONG, LONG TIME AGO AND THAT’S THE ONE THAT WE’VE GOT TODAY. >>THIS THING IS A PRODUCT OF ENGINEERING FIRST AND FOREMOST. IN ORDER TO GET EVERYTHING TO NEST AND BE AS ABSOLUTELY COMPACT AS POSSIBLE ANYTHING YOU SEE ON THIS THAT LOOKS LIKE SOMETHING THAT’S BEAUTIFUL OR THAT’S BEEN KIND OF FOUGHT FOR TOOTH AND NAIL BECAUSE THERE ISN’T ROOM FOR IT FRANKLY I THINK THAT’S VERY EVIDENT IN THINGS LIKE THE LIKE HOW THE BALL HEAD NESTS WITHIN THE KIND OF CLOSE ON THESE LEGS HERE. THE BALL HEAD ONLY ADDS ABOUT AN INCH ABOVE THE TRIPOD HOOK AND WHAT THAT MEANS IS IT ALSO HELPS YOU WITH TO INCREASE THE STIFFNESS, THE ULTIMATE STIFFNESS OF THIS TRIPOD IS VERY HIGH IN THE COMPRESSED MODE BECAUSE THE DISTANCE BETWEEN YOUR CAMERA AND THE POINT WHERE THE LEGS MEET AND THEN THE CONTROLS WE’VE GOT THESE RINGS AND EVERYTHING IS ON THE BALL HEAD SO IT’S ALL RIGHT HERE IN JUST A SINGLE HAND ACCESS POINT. YOU’RE NOT KIND OF SWITCHING AROUND BETWEEN DIFFERENT KNOBS. WE’VE DEVELOPED OUR OWN PLATE KIND OF SECURING MECHANISM THAT IS UNIQUE TO THIS TRIPOD AND THAT BASICALLY ALLOWS YOU TO TOW INTO THE TRIPOD AND THAT RIGHT THERE IS STABLE. THERE’S ALSO A LOCK THAT REALLY CENTERS EVERYTHING DOWN LIKE A DOUBLE. WE OPTED FOR CAM LEVERS ON THIS VERSUS THE TWIST LOCKS AS YOU ARE ABLE TO GET ALL FOUR AT ONCE AND YOU’RE ABLE TO GET THEM ALL UP AND THEN ALL DOWN AT ONCE. IN THE BOTTOM IN THIS LITTLE SECRET COMPARTMENT HERE IS A UNIVERSAL SMARTPHONE APP AND CLICKS INTO THE TRIPOD LIKE THAT AND LOCK IT DOWN AND YOU’VE GOT YOUR PHONE IN THERE LIKE SO AND YOU’RE SHOOTING. WE’RE REALLY TRYING TO BE AN ABSOLUTE TOP TIER PREMIUM PRODUCT BUT COME IN AT SORT OF LIKE A MID TO LOW PRICE POINT RANGE THAT IS ACCESSIBLE TO PEOPLE WHO AREN’T JUST YOU KNOW FLUSH WITH CASH.>>I GUESS THE FACT THAT INTEREST IS GAUGED ON IT IS AN EFFECT WHAT KICK STARTER IS FOR US. IT IS SERVED AS A LAUNCH VEHICLE FOR OUR PRODUCTS AND IT BECOMES A GAUGE MECHANISM BECAUSE YOU’LL CLEARLY INDICATE HOW IMPORTANT THEY ARE TO PEOPLE BASED UPON THE NUMBER OF BACKERS YOU GET AND THE AMOUNT OF MONEY THAT COMES TO THE DOOR. IN MY MIND WE HAVE BEEN A TRIPOD COMPANY SHINESSES 2012. IT’S JUST THAT THIS IS OUR FIRST OFFER NOW IN 2019.>>HELLO AND WELCOME TO THE 2019 EDITION OF WILL SMART GLASSES ACTUALLY BE A THING? TODAY WE ARE LOOKING AT THE FOCALS BY NORTH WHICH IS A CANADIAN COMPANY THAT LIKE THE REST OF US DIDN’T WANT TO LIVE IN A FUTURE WHERE GOOGLE GLASS MIGHT BE A REAL THING. THE FOLKS AT NORTH PRIORITIZED MAKING A GREAT PAIR OF GLASSES OVER MAKING A COOL GADGET. NOW THAT’S NOT TO SAY IT’S NOT A COOL GADGET BUT THESE THINGS REALLY DO LOOK AND FEEL LIKE A PAIR OF REGULAR OLD GLASSES EXCEPT FOR THE FACT THAT THEY’RE A LITTLE BIT HEAVIER ON THE FRONT SIDE THAN A PAIR OF THESE LET’S SAY. IN FACT THE AFNLG ON LOOKER PROBABLY WOULDN’T EVEN KNOW YOU’RE WEARING SMART GLASSES AT ALL. HOWEVER FOLKS WEARING THE GLASSES WILL NOTICE THEY AREN’T SO REGULAR. FOCALS ACT A BIT LIKE AN APPLE WATCH ON YOUR FACE WITH NOTIFICATIONS AND MESSAGES FROM YOUR PHONE. ON THE RIGHT INCOMING NOTIFICATIONS FROM MESSAGES, CALENDAR, REMINDERS, E-MAIL, SLACK AND UBER. AND FOCALS ALSO OFFER A VARIETY OF OTHER CONTENT TO BE CONSUMED DISCREETLY LIKE SPORTS SCORES AND LANGUAGE LESSONS AS WELL AS THE TIME AND DATE. TO NAVIGATE THE UI THE USER WEARS A RING WITH A JOY STICK. ONE OF THOSE FUNCTIONS IS TO RESPOND TO TEXT. YOU CAN DO THAT BY CHOOSING FROM A LIST OF SMARTLY GENERATED RESPONSES OR USE IN THE BUILT IN ALEXA INTEGRATION AND SPEAK YOUR RESPONSES. ONE CAVEAT TO THIS IS SINCE EIGHT GREATEST MESSAGE IS A CLOSED PLATFORM THEY HAVE TO GENERATE A DUMMY NUMBER TO SEND RESPONSES TO TEXT MESSAGES. SO HOW DOES ONE GO ABOUT ACTUALLY GETTING A PAIR? IT STARTS WITH A SIZING CONSULTATION AT ONE OF NORTH’S STORES. THEY HAVE ONE IN BROOKLYN WHERE WE WENT AND ALSO ONE IN TORONTO. AND THERE NORTH HAS A BOOTH OUT FITTED WITH 11 CAMERAS. NOW THOSE CAMERAS GENERATE A 3D MODEL OF YOUR HEAD ENSURING YOU END UP WITH ONE OF THE 100 SIZES THAT NORTH OFFERS THAT MIGHT FIT YOU BEST. FROM THERE YOU CHOOSE THROUGH THREE COLOR OFFERINGS AND THEN A DEMO OF THE PRODUCT. A FEW WEEKS LATER YOU HEAD BACK AND PICK UP YOUR PAIR OF SMART GLASSES. FOCALS START AT $600.>>>WE’RE IN THE MECHANICAL ENGINEERING LAB AT OUR HEADQUARTERS IN SANTA CRUZ, CALIFORNIA AND HERE WE DO A LOT OF PROTOTYPING AND NEW PRODUCTS AND DESIGN AND BUILD TEST FIXTURES AND EQUIPMENT THAT ENDS UP GETTING TRANSFERRED TO OUR FACILITY. THE ORIGINAL CONCEPT FOR ONE WHEEL WENT BACK TO SOMETHING I WAS TINKERING AROUND IN MY GARAGE AROUND 2008 AND WORKED ON IT FOR FIVE YEARS AND TRYING TO CREATE THE FEELING OF SNOWBOARDING ON POWDER AND EMEROMING TECHNOLOGIES THAT I THOUGHT WOULD BUILD A COOL WAY TO MOVE THROUGH THE WORLD. WE ENDED UP ON KICK STARTER IN 2014 AND EVER SINCE THEN A NON STOP RIDE OF EXPANDING AND INTRODUCING NEW PRODUCTS AND SPREADING IT AROUND THE WORLD. PEOPLE HAVE TAKEN ON ONE AS A SPORT AND REALLY PUSHED THE PROGRESSION THE WAY THAT ALL BOARD SPORTS KIND OF HAVE. I THINK PART OF IT WAS TO SAY SOME PEOPLE ARE GOING TO BE REALLY INTO PUSHING ALL OF THE LIMITS AND SUPER AGGRESSIVE TRAIN. THAT’S WHAT OUR EXISTING PRODUCTS HAVE BEEN OPTIMIZED FOR. IT’S PROBABLY A BIT MORE CASUAL AND TAKE IT WITH YOU AND RIDE IT THROUGH TOWN AND ZOOM AROUND THE PARKING LOT AND JUST HAVE FUN WITH IT. WE RAISE A COUPLE ROUNDS OF INVESTMENT EARLY ON A SERIES AND THAT WAS REALLY TO EXPAND THE TEAM AND TAKE ON NEW PRODUCT DEVELOPMENT. SINCE THEN WE’VE ACTUALLY BECOME A PROFITABLE COMPANY WHICH IS RARE IN THIS UNIVERSE SO REALLY FOCUSING ON BUILDING GREAT PRODUCT AND BEING REALLY HANDS ON ON THE MANUFACTURING AND THAT’S OPENED UP COOL FREEDOM TO BUILD WHAT WE WANT TO BUILD AND EXPAND IN THE WAYS WE WANT TO EXPAND. >>THIS IS THE FIRST ONE OF ALL TIME EVER BUILT. WE CALL THIS OLD IRON SIDES RIGHT HERE. BACK THEN YOU HAD LIKE AN ACTUAL BUTTON ON THE PAD. THIS IS HOW THE BOARD SENSED YOU AND KNEW YOU WERE THERE. THIS WAS THE BOARD WE ACTUALLY LAUNCHED THE COMPANY WITH. WAY LESS DUCT TAPE TODAY. THIS IS THE ORIGINAL AND NOW WE HAVE PRESSURE SENSES AND WE SHIPPED IN LIKE NINE MONTHS WHICH WAS PRETTY IMPRESSIVE. THIS IS THE PLUS WHAT HAPPENED RIGHT AFTER. THIS WAS THE INTRODUCTION OF A MOTOR. THIS IS THE XR OUR FLAG SHIP RIGHT HERE. THE LAMBORGHINI MIXED WITH THE JEEP RENEGADE. THIS IS SMALLER LIGHTER AND THIS HAS A HANDLE TO CARRY COMPLETELY DIFFERENTLY. SUPER CONVENIENT FOR LIKE THE LED STRIP. IT’S JUST LIKE ON A WHOLE MORE REFINED I THINK. THIS THING IS 68 MILES AND 16 MILES PER HOUR. ALTHOUGH YOU GET IT UP TO SPEED AND YOU FEEL LIKE YOU’RE COOKING. IT’S KIND OF LIKE THE SUBARU WRX. THIS IS LIKE THE FORD F250. QUIET ONSET. [LAUGHTER]. >>PINT HAS A BUNCH OF COOL FEATURES ONE OF THEM A LOWER PRICE UNDER $1,000. PART OF THE WAY WE DID THAT IS ABLE TO TAKE EVERYTHING WE’VE LEARNED ABOUT MANUFACTURING OVER THE LAST FIVE YEARS AND USE IT TO BUILD A NEW FACTORY SPECIFICALLY TO MANUFACTURE PINT AND TO BE ABLE TO KEEP THAT IN CALIFORNIA WHICH WE’RE REALLY EXCITED ABOUT. I THINK THERE’S A LOT OF ADVANTAGES TO BUILDING DOMESTICALLY, INDEX VALUES ELECT YULE PROPERTY IS ONE AND RETAINING THE KNOWLEDGE YOU LEARN A LOT MAKING YOUR PRODUCT AND IF YOU OUT SOURCE IT SOMEONE ELSE LEARNS A LOT ABOUT MAKING YOUR PRODUCT. WE’RE REALLY MORE ON THE OWN PERSONAL MOBILITY SIDE OF THIPGZ. ONE THING THAT’S SUPER IMPORTANT IS PERSONALIZING THEIR BOARDS SO IT’S THE OPPOSITE. IF A SHARED VEHICLE IS GENERIC ALL OF THE SAME AND NO OWNERSHIP OF IT VERSUS AN OWNED THING WITH YOUR STICKERS AND CUSTOM COLORS AND YOUR PRIDE AND JOY, RIGHT? AND FROM THE VERY BEGINNING I SAID I WANT TO MAKE SOMETHING THAT PEOPLE HAVE AN EMOTIONAL CONNECTION TO AND WANT TO GET IT FOR THEMSELVES. WITH THINGS WE’VE BEEN INTRODUCING RECENTLY LIKE COLORS AND THINGS LIKE THAT TO EXPRESS YOURSELF IN YOUR OWN PERSONAL SPACE. WE HAVE NOW THE MANUFACTURING CAPACITY AND WE HAVE REALLY SOME OF THE LEADING TECHNOLOGY IN ELECTRIC VEHICLES ACROSS THE VARIOUS SUB SYSTEMS. NOW WE ARE TALKING TO PARTNERS ABOUT WHAT ELSE WE CAN DO WITH THAT TECHNOLOGY. ♪ [ MUSIC ] ♪>>HERE WE’RE ACTUALLY INTRODUCING A BRAND NEW GALAXY NOTE 10 AND 10 PLUS. WE’RE ACTUALLY BRINGING OUT A NEW INNOVATION TO OUR PLATFORM. PLUG IT INTO YOUR WINDOWS COMPUTER OR MACK AND SIMPLY RUN A SEPARATE WINDOW OR FULL SCREEN TO SHARE FILES BACK AND FORTH BETWEEN THE TWO AND CONTINUE THAT WORK FLOW. WHAT HAS ALWAYS SEPARATED THE NOTE FROM OTHER BIG SCREEN DEVICES IS THE S PEN THAT DELIVERS A LOT OF SOLUTION TO CUSTOMERS PRODUCTIVITY OR CREATIVE. REALLY THINKING ABOUT THE CUSTOMER THAT WANTS TO BUY A NOTE VERSUS AN S IT REALLY COMES DOWN TO NOT ONLY THE BEST PERFORMANCE AND INNOVATION AND TECHNOLOGIES BUT WANTING TO UTILIZE TO MAXIMUM CAPABILITIES AS WELL. AR DOODLE HARNESSES THE POWER OF REALITY AND EVERYWHERE OR FACE AND TRACK THE FACE WITH YOURS WITH A SELFIE OR SOMEONE ELSE WITH A REAR CAMERA AND ANYTHING YOU DRAW ON THEM A BEARD OR GLASSES FOR FUN YOU ACTUALLY FOLLOW THEM THROUGH THE FRAME SO IT APPEARS RIGHT THERE. THE GALAXY NOTE 10 WILL COME WITH THREE CAMERAS ON THE BACK, ULTRA WIDE, TRADITIONAL WIDE ANGLE AND PHOTO AND FRONT MEGA PIXEL CAMERA. ON THE NOTE 10 PLUS AND 5G MODEL THEY GET ALL OF THE CAMERAS AND THE S105G. IT MEASURES DISTANCE SO QUICKLY MEASURE THAT CHAIR OR TABLE AND MAKE SURE IT FITS BEFORE I TAKE IT HOME. THE HEAD PHONE JACK ELEMENT WAS WHEN IT COMES TO MAXIMIZING. THE HEAD PHONE JACK WHILE IT SEEMS SMALL ALLOWS TO ADD A BATTERY AND MAKE THIS THE MOST NARROW NOTE YET AND MAKE ALL OF THE ROOM FOR THE BIG SCREEN AND THE PERFORMANCE THEY EXPECT. PREORDERS START ON AUGUST 8 FOR ALL THREE DEVICES TO LAUNCH AT THE SAME TIME. THE NOTE 10 IS $949 NOTE 10 PLUS STARTS AT 1099 AND NOTE 10-G ON VERIZON WIRELESS EXCLUSIVELY FOR A LIMITED TIME AND THAT’S $1,299.>>WE’RE REALLY GOING HERE FOR THE LUXURY MARKET SO WE’RE LITERALLY BRINGING THE FUTURE IN TODAY’S PLATFORM AND LOOKING TO CHANGE THAT INDUSTRY WITH OUR GALAXY FOLD DEVICE AND BRINGING SO MUCH BACK INTO ONE UNIFIED BODY. WE’RE ABLE TO GIVE AN EXPERIENCE WE COULDN’T DO BEFORE HAND SO NOW NOT ONLY DO WE HAVE ONE HANDED USE BUT OPTIMIZE TO TWO HANDED LARGER SCREENS WHICH REALLY OUR CUSTOMERS WANT IN A NICE PACKAGE. FROM A PREMIUM STANDPOINT WE EVEN HAVE GEARS WHEN YOU OPEN IT UP YOU HAVE A PREMIUM FEEL WHEN IT OPENS UP AND YOU HAVE THAT 180-DEGREE WHERE IT LOOKS LIKE A FLAT SCREEN. WE ALSO WANTED TO MAKE SURE YOU CAN GIVE AND THE 4.6 DISPLAY YOU OPEN IT UP LIKE A TAB AND THIS IS WHY WE PACKED IT OUT WITH 12 GIGS OF RAM AND IT GAVE YOU 512 GIGS OUTSIDE OF THE BOX FOR YOU TO PUT YOUR CONTENT ON. A TOTAL OF SIX CAMERAS ON THE DEVICE. YOU’VE GOT YOUR MAIN CAMERA THERE YOU CAN USE FOR A VIDEO CHAT, TAKE SELFIE PHOTOS, THIS SORT OF THING. NOW YOU GET TWO CAMERAS INSIDE SO WHEN YOU ARE USING IT TWO CAMERAS TO GET EFFECT OF SELFIES AND VIDEO CALLS AND IDEAS IF IT’S SHUT AND YOU RECEIVE A CALL YOU CAN OPEN IT AND THAT CONTINUES AND YOU CAN SHUT IT AND IT REVERSES AS WELL AND IN THE BACK OF THE DEVICE JUST LIKE THE GALAXY S10 WE HAVE THREE MAIN CAMERAS AS WELL FOR THE EXPERIENCE CONTINUOUS NO MATTER HOW YOU CHOOSE TO USE YOUR GALAXY PHONE. IEPS NOT REALLY FULLY AWARE OF WHAT OUR COMPETITORS ARE DOING AT THIS POINT BUT WE WANT TO TAKE THE BEST OF WHAT WE DO AND BRING THAT FOREFRONT TECHNOLOGY FROM THE FUTURE TO TODAY AND MAKE SURE IT TRULY FEELS PREMIUM AND SETS THE STANDARD JUST LIKE WE’VE DONE WITH NOTE DISGUISESES WHERE WE’RE GOING INTO UNCHARTED WATERS AND SETTING A STANDARD OF HOW SMARTPHONES ARE GOING TO EVOLVE IN THE FUTURE. FOR PRICING $1,980 FOR AVAILABLE. STAY TUNED FOR DIFFERENT CARRIERS WEBSITE AND PRICING AND YOU’LL HEAR MORE ANNOUNCEMENTS FROM OUR PARTNERS IN THE NEAR FUTURE. >>THE MAIN MOBILITY IS THE COMPANY THAT’S FOCUSED ON REIMAGINING TRANSPORTATION. YOU CONSIDER YOURSELF MORE OF A TRANSIT COMPANY THAN AN AUTONOMOUS VEHICLE COMPANY. >>THE BUSINESS OF PROVIDING SERVICE. IT’S THE BUSINESS OF MOVING PEOPLE AND AUTONOMY IS OUR KILLER FEATURE TO HELP US DO THAT EVEN BETTER. >>RIGHT NOW WE ARE STANDING OUTSIDE OF OUR BRICK TOWN PARKING GARAGE. MAIN MOBILITY AUTONOMOUS SHUTTLE. WE DID HAVE ON THIS ROUTE A 25 PASSENGER DIESEL VEHICLE AND THERE ARE A NUMBER OF HOURS IN THE DAY WHERE THERE’S TWO OR THREE PEOPLE AND CHEWS UP CURB SPACE SO WE KNEW A SMALLER FOOTPRINT VEHICLE AND WE WERE SEEKING TO HAVE SOMETHING ELECTRIC AND AUTONOMOUS MADE IT EVEN BETTER. >>ONE OF THE THINGS OR ONE OF THE PROMISED FUTURES OFTEN TIMES CENTERS ON AUTONOMOUS ROBO TAXIS THAT CAN GO ANYWHERE HAS THAT TIMELINE IN YOUR VIEW SHORTENED AT ALL? >>NO. >>NO. >>I THINK THE TIMELINE OF ANYTHING HAS GOTTEN LONGER IN THE LAST SINCE WE LAST TALKED ABOUT THIS A YEAR AGO. YOU’VE SEEN MORE AND MORE COMPANIES BACK OFF OF THESE GRAND CLAIMS THEY ARE GOING TO HAVE ROBO TAXIS COVERING WHOLE CITIES. MORE AND MORE OF THEM FOCUSING ON SINGLE CITIES OR SINGLE USE CASES BECAUSE IT IS A REALLY HARD ENGINEERING CHALLENGE AND THAT’S OKAY. EVEN WITH THE SUB SET OF ENGINEERING CHALLENGE THERE’S STILL A LOT OF OPPORTUNITY AND I THINK IT’S BEST THAT WE AS AN INDUSTRY FOCUS HOW WE THINK ABOUT THIS ROLL OUT ON SAFETY AND HOW WE CAN IMPROVE MORE PEOPLE’S TRANSPORTATION SAFELY THAN JUST TRYING TO GO FOR ROBO TAXI AND ASSUMING THAT THAT’S THE BEST THING. >>DETROIT DOES NOT HAVE A DEEP AND EXPANSIVE PUBLIC TRANSIT SYSTEM. WE HAVE ALL FOUR SEASONS DIFFERENT WEATHER, THE ROADS ARE NOT ALWAYS IN PERFECT CONDITION AND SO IT REALLY LETS US GET A SENSE OF WHAT THE VEHICLE CAN DO AND HOW IT RESPONDS TO MULTIPLE ARRAYS OF CIRCUMSTANCES. >>DO YOU ENVISION CONTINUING TO FOCUS ON LIKE THE MIDWEST AND EAST COAST SOME OF THESE AREAS THAT HAVE MORE CLEMENT WEATHER OR DO YOU FORESEE MOVING OUT WEST AT ALL? >>IN THE NEXT YEAR OUR FOCUS IS DEFINITELY ON STATES WITH STRONG REGULATION ENVIRONMENTS AND FAST GROWING CITIES WITHIN THOSE STATES TO MAKE SURE THERE’S A LOT OF OPPORTUNITY SO I CAN’T TELL YOU EXACTLY WHICH PLACES BUT WE’RE EXPLORING OTHER CLIMATES. >>OKAY. THANKS.>>>THIS IS THE PORTAL TV A $149 DEVICE THAT SECRETARIES TO YOUR NORMAL TELEVISION AND LET’S YOU DO VIDEO CALLING AND REALITY EFFECTS PLAY GAMES AND WATCH THINGS LIKE AMAZON VIDEO BUT THIS ISN’T ABOUT MEDIA. YOU’RE NOT WATCHING HBO AND NET TLAIB ON THIS DEVICE. INSTEAD IT’S ABOUT CONNECTING YOU WITH THE PEOPLE YOU CARE ABOUT MOST THROUGH THE BIGGEST SCREEN IN YOUR LIFE. UNLIKE A ROAD CREW OR CHROME CAST IT ACTUALLY HAS A 12 MEGA PIXEL CAMERA AND PRIVACY SHUTTER AS WELL AS 12 MICROPHONES TO LISTEN AND SEE YOU AND USE THE SMART CAMERA VISION TO BE ABLE TO PAN AROUND THE ROOM AND AUTOMATICALLY DETECT FACES SO YOU ALWAYS STAY IN FRAME EVEN IF YOU MOVE AROUND THE ROOM WHILE VIDEO CALLING. YOU CAN USE THE INTEGRATED PORTAL SERVICE STAND TO PLACE YOUR PORTAL TV IN FRONT OF YOUR TELEVISION OR DOUBLE AS A CLIP AND CLIP IT ON TOP OF THE TELEVISION INSTEAD. FACEBOOK PACKED ALL PORTAL TECHNOLOGY INTO SMALLER DEVICES AT A CHEAPER PRICE POINT. THE 129 PORTAL MINI, TV, PORTAL AND THE 279 PORTAL PLUS. THE MOST INTERESTING FEATURE OF PORTAL TV IS WATCH TOGETHER USING FACEBOOK’S WATCH PARTY TO LET YOU SELECT A VIDEO AND ACTUALLY WATCH IT AT THE SAME TIME AS YOUR FRIENDS ON ANOTHER PORTAL OR FACEBOOK DEVICE SO THAT MEANS YOU HAVE A LITTLE PICTURE AND PICTURE WITH YOUR FRIENDS WATCHING AT THE SAME TIME AS YOU ARE AND IF THEY WANT TO TALK OR COMMENT THE FACEBOOK PORTAL TV WILL DUCK DOWN THE AUDIO FROM THE VIDEO TO HEAR THEM OVER THE TOP AND BASICALLY MAKES IT LIKE YOU ARE HANGING OUT TOGETHER WATCHING TV AT HOME EVEN THOUGH YOU ARE AT SEPARATE BUILDINGS. FOR NOW THE WATCH TOGETHER FEATURE ON PORTAL TV ONLY WORKS FOR FACEBOOK WATCH PARTY VIDEOS BUT CONSIDERING IT HAS AMAZON PRIME VIDEO AND A BUNCH OF OTHER TV VIDEO APPS YOU’RE LIKELY TO START BEING ABLE TO WATCH PROFESSIONAL CONTENT WITH YOUR FRIENDS PRETTY SOON. THERE’S FACE FILTERS INVOLVED WITH PORTAL TV AND THE REST OF THE PORTAL GANG AND THAT MEANS THAT PEOPLE CAN PLAY AROUND ESPECIALLY IF YOU ARE PLAYING WITH LITTLE KIDS WHO PROBABLY AREN’T GOING TO HAVE THAT MUCH TO SAY TO YOU BUT WOULD LOVE TO MAKE SILLY FACES TOGETHER. WITH THE SMART CAMERA TECHNOLOGY FACEBOOK ACTUALLY DETECTS WHERE PEOPLE ARE IN THE FRAME SO IF EVERYBODY MOVES OVER TO THE SIDE YOU’LL SEE THAT THE CAMERA ACTUALLY PANS OUT AND ZOOMS IN TO KEEP EVERYBODY IN FRAME ALL THE TIME AS CLOSE AS POSSIBLE. AND IT EVEN DUCKS OUT THAT PICTURE AND PICTURE VIEW OF YOURSELF IF A FACE GOES BEHIND THE SCREEN. A BIG QUESTION WHEN YOU ARE DECIDING IF YOU WANT A PORTAL IS DO YOU TRUST FACEBOOK TO BE INSIDE YOUR HOUSE? IT’S DONE A LOT OF WORK WITH ELECTRONIC AND PHYSICAL SHUTTERS THAT COVER THE MICROPHONES AND DISCONNECT THE CAMERA TO MAKE YOU FEEL SAFE BUT A COMPANY WHICH HAS HAD SO MANY SCANDALS IN THE PAST IS GOING TO BE HARD TO TRUST AND A LOT OF PEOPLE WILL JUST FIND IT TOO CREEPY. BUT IF YOU ARE WILLING TO PUT FACEBOOK IN YOUR HOME IT’S ONE OF THE CHEAPEST WAYS TO GET A VIDEO CALLING DEVICE ON A BIG, BIG SCREEN. IF YOU JUST WANT TO LAY BACK AND WATCH TV THESE ARE NOT THE DEVICES FOR YOU BECAUSE THEY DON’T HAVE HBO, NETFLIX OR A LOT OF THE VIDEO ENTERTAINMENT FEATURES BUT IF YOU ARE LOOKING FOR A CHEAP WAY TO BE ABLE TO VIDEO CALL WITH PEOPLE ON A REALLY NICE OR A REALLY BIG SCREEN PORTAL MAKES IT EXTREMELY CHEAP CONNECTED WITH ALL OF MESSAGER AND WHAT’S APP TO MAKE VIDEO CALLING SUPER EASY. THE NEWPORTAL DEVICES AND TV DON’T DO EVERYTHING. THEY’RE GREAT FOR VIDEO CALLING BUT MORE EXCITING THAN THAT IS HOW THIS IS THE START OF FACEBOOK’S HUB IN THE LIVING ROOM GETTING MORE INTO GAMING VIDEO ENTERTAINMENT AND EVERYTHING YOU WANT TO DO IN THE SMART HOME BECAUSE IT’S CONNECTED TO THE BIGGEST SCREEN IN YOUR LIFE. ♪ [ MUSIC ] ♪>>>SEISMIC IS A UNIQUE COMPANY THAT’S INTRODUCING A NEW PRODUCT CALLED POUCHERRED CLOTHING WHICH IS THE FUSION OF APARTIAL AND ROBOTICS. OUR FIRST PRODUCT IS INTEGRATING WHAT WE CALL INTELLIGENT WEARABLE STRENGTH FOCUSED ON THE CORE AND WHAT THAT DOES IS IT PROVIDES ASSISTANCE TO THE HIPS AND LOWER BACK TO SUPPORT MOBILITY AND POSTURE SO THERE ARE MANY PEOPLE THAT CAN USE THAT PRODUCT BUT WE’RE REALLY GOING WHERE THE NEED IS THE GREATEST AND FOCUSING ON THE BROAD CONSUMER WELLNESS MARKET. EXOSKELETONS ARE REALLY WHAT THE PUBLIC UNDERSTANDS AND PEOPLE UNDERSTAND IN TERMS OF WEARABLE ROBOTICS BUT WE ARE CHYLE NOT AN EXOSKELETON AND PART OF OUR INSIGHT IS WE UNDERSTAND AND SAW THAT EVERYBODY IS WEARING CLOTHING NO ONE IS WEARING ROBOTS SO OUR COMPANY IS A FUSION OF APPAREL AND ROBOTICS AND ALSO INFORMED QUITE A BIT BY BIO MECHANICS. >>WHEN WE THINK ABOUT WHAT KIND OF INFLUENCES ARE GOING TO DIRECTLY DRIVE THE DESIGN OF THE APPAREL IT TENDS TO COME MUCH OF IT FROM THE SPORT PERFORMANCE WORLD SO THOSE TEND TO BE THE EXPERIENCES OR PRODUCTS THAT ARE BUILT FOR EXPERIENCES WHERE YOU NEED TO HAVE TREMENDOUS COMFORT. YOU NEED TO HAVE A GREAT RANGE OF MOBILITY. YOU NEED TO BE COOL. YOU NEED TO BE DRY. YOU NEED TO BE COMFORTABLE AND YOU NEED TO LOOK GREAT AT THE SAME TIME. >>I CAME ABOUT TEN YEARS AGO TO BE THE DIRECTOR OF ROBOTICS AND ONE PROGRAM IN PARTICULAR WAS THE DARK WEARER PROGRAM AND UNDER THAT DEVELOPMENT WORK WE CREATED A SET OF LIGHT WEIGHT EFFICIENT ELECTRIC MUSCLES THAT WERE ALIGNED WITH THE OBJECTIVE OF THAT PROGRAM FOCUSED ON WEARABLE ROBOTIC APPLICATIONS MORE TARGETED TOWARDS FATIGUE REDUCTION AND INJURY MITIGATION. THE KEY THING WAS THIS LIGHT WEIGHT ELECTRIC MUSCLE A VERY DIFFERENT COMPONENT THAT HAD EVER BEEN AVAILABLE IN ROBOTICS BEFORE. >>THE LUNAR ACQUISITION WAS A SMART ACQUISITION BECAUSE OF THE FOCUS THAT THEY HAD ON MOVEMENT SCIENCE AND MOVEMENT ANALYSIS ESPECIALLY AROUND THE CORE AND POSTURE. AND WE HAVE SUCH A FOCUS ON CORE WELLNESS THAT IS SEISMIC THAT THE UNDERSTANDING OF THE ALGORITHMS, UNDERSTANDING THE USE CASES REALLY HELPED US TO INTEGRATE BOTH MISSIONS AND ALIGN THEM AS WE ACQUIRED THEM WITHIN SEISMIC. >>THE KEY PART OF THE CAPABILITY WAS ACTUALLY THE ABILITY TO USE A SENSOR TO MONITOR THE BODY AND TRACK POSTURE AND OUR SUIT MAKES USE OF THAT SAME KIND OF CAPABILITY BUT THEN GOES ONE STEP FURTHER AND ALLOWS US TO INTERACT WITH THE PERSON AND PROVIDE ACTIVE SUPPORT AS WELL. >>WE HAVE SEVERAL HUNDRED PEOPLE RIGHT NOW USING THE SUITS AND THEY ARE ABSOLUTELY LOVING IT. SO THEY’RE USING IT IN THEIR EVERY DAY TO HELP AUGMENT THEIR STRENGTH AND ENDURNS REALLY TO HELP WITH THEIR PERFORMANCE. WE’RE SEEING THEM PLAY TENNIS IN IT. WE’RE SEEING THEM HIKE IN IT AND HIKE FURTHER THAN THEY HAVE BEFORE. >>WE ACTUALLY HAVE ON STAFF PHD BIO MICK INC.S, PHYSICAL THERAPIST, OCCUPATIONAL THERAPIST. MY BACKGROUND BEFORE WAS IN DEVELOPING REHABILITATION TECHNOLOGY BASED ON ROBOTICS SO ALL OF THAT BACKGROUND HELPED US UNDERSTAND WE WANTED TO FOCUS ON A CONSUMER WELLNESS EXPERIENCE TO START AS OPPOSED TO A MEDICAL OR INDUSTRIAL APPROACH. >>WHEN WE ARE AT OUR BEST WHAT WE ARE DOING IS TAKING ALL OF THOSE POINTS OF VIEW AND MELDING IT INTO ONE SINGULAR FORMULA WHERE ALL OF THOSE VOICES BECOME THE BEST APPROACH AND AT THE END OF THE DAY WHAT THAT IS IS A USER CENTERED DESIGN APPROACH. IT STARTS WITH THE USER. WE HAVE A SENSE OF WANTING TO BE NOT ONLY HELPFUL AND DRIVING VALUE INTO OUR USER’S LIVES BUT ALSO HAVING THEM JUST LOVE THE PRODUCT AND APPRECIATE IT FOR WHAT IT IS. >>FOR THIS PRODUCT WE HAVE EXPLORED ALL OF THE SAFETY REQUIREMENTS AND CERTIFICATIONS SO THERE’S ABSOLUTELY CONSUMER SAFETY AROUND BATTERY AROUND THIS IS A WIRELESS COMMUNICATIONS INTEGRATED INTO THE SUIT SO THE CURRENT PRODUCT FOCUSED ON THE WELLNESS MARKET DOES NOT REQUIRE FDA APPROVAL. IT’S NOT A MEDICAL PRODUCT. SO FEATURING PARTS OF OUR ROAD MAP MAY GO THERE BUT THIS DOESN’T REQUIRE FDA APPROVAL. SO WE HAVE RAISED OVER $22 MILLION SO FAR. WE ARE RAMPING UP WITH THOSE PLACEMENTS DURING NEXT YEAR. AND BEGINNING TO EXPAND AFTER THAT. WE SEE OURSELVES IN A PRICE POINT THAT WILL BE SIMILAR TO A HIGH-END, AND ACTUALLY FITTING WELL INTO THE FASHION EXPERIENCE FOR PRICING. I HAVE BEEN IN ROBOTICS FOR A WHILE.>>>WHAT TECHNOLOGY DO YOU THINK WILL HELP US BEST DEAL WITH NATURAL DISASTERS? GO TO THE IBM BOOTH, BF 1, THE CALL FOR CODE FINALISTS, OVER 5000 PEOPLE HAVE ALREADY VOTED. ♪ ♪♪ ♪♪ ♪♪ ♪>>>LADIES AND GENTLEMEN, PLEASE TAKE YOUR SEATS. THE PROGRAM IS ABOUT TO BEGIN. ♪ ♪♪ ♪♪ ♪ ♪ ♪ ♪♪ ♪♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪♪ ♪♪ ♪♪ ♪ ♪ ♪ ♪>>>LADIES AND GENTLEMEN, PLEASE SILENCE MOBILE DEVICES, THE PROGRAM IS ABOUT TO BEGIN. ♪ ♪♪ ♪ ♪ ♪ ♪ ♪ TECH CRUNCH DISRUPT>>WELCOME TECH CRUNCH MANAGING EDITOR, JORDAN CROOK.>>>THANK YOU DARRELL, APPRECIATED. WHAT IS YOUR NAME? ROBERT, THANK YOU SO MUCH ROBERT, I APPRECIATE THAT, DO YOU WANT TO COME AND TAKE A SELFIE? COME ON. LET’S DO IT. I HAVE PEOPLE BACKSTAGE REAL MAD AT ME. CAN YOU GET A.? THERE ARE STAIRS RIGHT THERE. OH, HE’S LIKE I AM SKILLED. WE CAN DO BOTH. IF YOU WANT TO. OKAY WITH THE CROWD, EVERYONE SMILE.>>I WILL TWEET IT. >>THANK YOU. THAT’S WHAT HAPPENS WHEN YOU ARE ENTHUSIASTIC, DO YOU SEE THAT? THEY ARE LIKE WE DON’T WANT A SELFIE. SHE IS AT EVERY DISRUPT, SHE IS MY FAVORITE, WE ARE GOING TO CATCH UP WITH SOME OF OUR BATTLEFIELD WINNERS, I DON’T KNOW IF YOU’RE FAMILIAR, NOT ONLY THE BATTLEFIELD HERE ON THE DISRUPT STAGE, BUT ALL OVER THE WORLD. WE ARE GOING TO HEAR FROM SOME OF THE WINNERS FROM PAST BATTLEFIELDS, LOOKING TO THE STAGE, THE WINNER IN NIGERIA, THE FOUNDER OF M-SCAN, A WARM WELCOME PLEASE.>>[ APPLAUSE ]>>GOOD AFTERNOON, EVERYONE. MY NAME IS PHYLLIS KYOMUHENDO, I AM FROM UGANDA, WE ARE THE TECH CRUNCH BATTLEFIELD WINNERS, WE ARE PROUD TO BE ON THE STAGE. I WILL TELL YOU BRIEFLY ABOUT THE M-SCAN STORY, WE BEGAN THE MEDICAL SCHOOL, I AM MEDICAL BY PROFESSION, ULTRASOUNDS, X- RAYS FOR LIVING, WHILE IN MEDICAL SCHOOL, THEY OFTEN POSTED AS TO DIFFERENT VILLAGES ACROSS UGANDA. THE SAD PART WAS THAT MOST OF THE VILLAGES HAD NO ELECTRICITY, I WANT YOU TO IMAGINE ME WITH A GROUP OF DENTISTS AND DOCTORS DOING THE WORK, ME SITTING BACK, WATCHING SEVERAL WOMEN DIED, I COULD HAVE SCANNED AND PREVENTED, THERE’S NOTHING WORSE THAN FEELING LIKE A USELESS HEALTH WORKER, THAT IS WHERE M-SCAN WAS BORN. AND UGANDA TODAY, 16 MOTHER’S DAY EVERY DAY DUE TO PREGNANCY COMPLICATIONS. AS MUCH AS THAT SEEMS LIKE A STATISTIC FOR JUST UGANDA, I WOULD LIKE TO TELL YOU TODAY, THE NEXT SLIDE PLEASE, THAT TODAY, 830 WOMEN DIED DUE TO PREGNANCY COMPLICATIONS, I FIND THIS UNACCEPTABLE. NEXT SLIDE. THAT IS WHERE WE CAME UP WITH M- SCAN, A LOW COST MOBILE ULTRASOUND DEVICE THAT CONNECTS TO A TABLET, LAPTOP OR PHONE, AND ENABLES FRONTLINE HEALTH WORKERS TO CARRY OUT ULTRASOUNDS THAT ARE MUCH- NEEDED BY PREGNANT WOMEN IN LOW RESOURCE SETTINGS.>>>NEXT SLIDE. SO FAR WE HAVE CARRIED OUT 411 SKINS ON PREGNANT WOMEN AND DETECTED OVER 42 COMPLICATIONS, LET THAT SINK IN, A 10% RATE OF COMPLICATIONS, WE DO THIS THROUGH MEDICAL CAMPS THAT ARE THREE-PHASE TO, THE NEEDS ASSESSMENT, DO YOU NEED THE SERVICES, HOW CAN WE HELP YOU, WE THEN ASKED FOR PERMISSION FROM DIFFERENT STAKEHOLDERS IN THE AREA, AND WE COME INTO THE SCAN, AND THE LAST PART IS THE FOLLOW-UP, THAT IS MY FAVORITE PART. NEXT SLIDE. MY TEAM AND I HAVE HAD THE PLEASURE OF MEETING MOTHERS AND THE BABIES, THAT WE MANAGED TO SAVE WITH THE INNOVATION. AND FOR ME, AS YOU CAN SEE, THERE IS NOTHING MORE SATISFYING THAN THAT. >>>WE ARE PLANNING TO EXPAND OUR SERVICES TO THE REST OF AFRICA AND OTHER LOW RESOURCE SETTINGS ACROSS THE ROAD, WE HAVE DISTRIBUTORS AND KENYA ANDREW D, WE HOPE TO GO TO THE REST OF THE PLACES IN THE WORLD. AND WE HOPE TO LAUNCH IN JANUARY 2020, WE WILL DO THIS USING A DIRECT SALE MODEL, RENTAL MODEL AND COST-SHARING MODEL. WE ARE GRATEFUL FOR TECH CRUNCH AND THE GLOBAL STAGE THEY GAVE US, AND WE HAVE BIG PARTNERS LIKE JOHNSON & JOHNSON AND MICROSOFT FOR AFRICA.>>>I STAND HERE REPRESENTING A GROUP OF 4 COFOUNDERS, I CALL UPON YOU TO JOIN US MAKE SURE THAT NO MOTHER, NO MOTHER, DIES WHILE GIVING LIFE. M-SCAN, SAVE A MOTHER, SAVE A LIFE. >>[ APPLAUSE ]>>GREAT JOB.>>>NEXT UP, OUR WINNER OF THE BATTLEFIELD IN LEBANON, THE FOUNDER OF BUILD LINK, WELCOME.>>HELLO, WITH MORE THAN 400 YEARLY NATIONAL DISASTERS WORLDWIDE, MILLIONS OF FAMILIES ARE LOSING THEIR HOUSES. IT TAKES AT LEAST THREE MONTHS TO BUILD A SINGLE HOUSE, WITH SIGNIFICANT RESOURCES, AT BUILDLINK, WE ARE SOLVING IT BY TAPPING THE CONSTRUCTION INDUSTRY USING THE SCALABLE AND MODULAR FEATURES GOD 90% LESS TIME, AND THE HIGH CONSTRUCTION STANDARDS, WE AUTOMATE HEAVY LABOR, AND WITH THE INCREASING SHORTAGE OF WORKERS, REDUCING THE AMOUNT OF MANUAL WORK ENSLAVEMENT. OUR ENGINEERING TEAM HAVE CREATED A TYPE OF CONCRETE MIXTURE THAT IS A CO-FRIENDLY, WHICH IS FROM FLY ASH FROM INCINERATORS, AND WE TURN IT INTO CONCRETE. OUR ENGINEERING TEAM IS GROWING, WE HAVE REACHED SINGAPORE, WHERE WE ARE OPERATING IN START TO OPERATE IN THE REGION. THANK YOU SO MUCH FOR YOUR TIME.>>[ APPLAUSE ]>>>OKAY, WE’VE GOT ANOTHER BATTLEFIELD WINNER, THIS TIME FROM BRAZIL, WELCOME TO THE STAGE THE FOUNDER OF OLHO DO DONO. ♪ ♪>>AS THE OLD SAYING GOES, IT IS THE I — EYE THAT FATTENS THE CATTLE, THE WEIGHT OF THE CATTLE IS CRUCIAL TO MONITOR, IT INDICATES HEALTH, GENETIC EVOLUTION, THE RIGHT TIME TO SELL AND THE VALUE OF LIVESTOCK. TO SUMMARIZE, MORE WEIGHT, MORE MONEY. CURRENTLY, THE WEIGHT INFORMATION IS TIME-CONSUMING AND LABOR-INTENSIVE. SO IT IS REALLY OBTAINED. WORSE, WEIGHING A COW IS STRESSFUL FOR THE ANIMAL, CAN LEAD TO INJURIES, AND IT LOSES WEIGHT, LESS WEIGHT, THIS MONEY. OLHO DO DONO PROVIDES FARMERS WITH A PRECISION INSIGHT INTO LIVESTOCK MANAGEMENT. ALLOWING THEM TO MONITOR WEIGHT VALUATION FREQUENTLY, IN A STRESS-FREE MANNER FOR THE ANIMAL, AND A PACE THAT IS 10 TIMES FASTER THAN THE TRADITIONAL PROCESS. USING OUR SOLUTION, IT IS SIMPLE, JUST PLACE THE CAMERAS AS THEY NATURALLY PASS, IT STARTS TO RECORD AUTOMATICALLY. FARMERS HAVE NATIONAL BOARDS WITH RECOMMENDATIONS ON HOW TO OPTIMIZE WEIGHT GAIN AND PROFITABILITY, WITH ACCESS TO THIS DATA, FARMERS KNOW WHEN TO SELL THE ANIMALS, AND TREAT COWS AS SOON AS THEY GET SICK, AND PLAN THE NEXT PURCHASE, BASED ON THE BEST GENETICS. WE HOPE FARMERS TO GROW THEIR BOTTOM LINE. OUR TECH HAS BEEN DEVELOPED OVER A FIVE-YEAR TIMEFRAME, BY AN INCREDIBLE TEAM. WE USE 3-D IMAGES OF THE MORE THAN 20,000 ANIMALS WHOSE WEIGHT WE MEASURED USING TRADITIONAL SKILLS. OUR SOLUTION IS THE ONLY PORTABLE ONE IN THE WORLD THAT DOESN’T REQUIRE A HUMAN INTERACTION, AND DOESN’T REQUIRE THE ANIMAL TO STANDSTILL. AFTER WE HAD THE FIRST TECH CRUNCH IN LATIN AMERICA, WHICH WAS GREAT, WE ALSO WON AS THE BEST BRAZILIAN ARCHITECT, AND WE WERE CONSIDERED FOR THE SECOND YEAR IN A ROW THE BEST BRAZILIAN TECH. WE HAVE BEEN CONTACTED BY FARMERS IN MORE THAN 20 COUNTRIES, SHOWING A WORLDWIDE SOLUTION THAT WE SOLVE IN A VERY EASY WAY. IT IS 1 BILLION HEADS OF KYLE, AND $3 BILLION, THIS IS THE INITIAL SOLUTION, OUR VISION IS TO BE THE WORLD PLATFORM FOR LIVESTOCK. USING BIG DATA, AND BENCHMARKING FOR RECOMMENDATIONS. WITHOUT THE ATTENTION WE GOT, WE SOLD TO EARLY ADOPTERS, REACHING OUR GOAL IN FOUR MONTHS WITH ZERO CHURN, THESE EARLY ADOPTERS ARE USING JUST THE BACKPACK TO WEIGH THE CATTLE, IT IS MORE CONVENIENT TO THEM, JUST AS THE MAJORITY OF THE BRAZILIAN FARMERS PRESERVES THE FOREST, AND WORRIES ABOUT THE WELL-BEING OF THE CATTLE, WHICH IS TOTALLY ALIGNED TO OUR PROPOSAL, WHICH IS GOT LET’S INCREASE PRODUCTIVITY, PROFITABILITY, DEMANDING THE SPACE, HELPING THE ENVIRONMENT, MAINTAINING THE WELL-BEING OF THE CATTLE, HELPING TO FEED THE WORLD WITH A GROWING POPULATION. LET’S DO TOGETHER, IF YOU INVEST IN THE TECH SPACE, IF YOU’RE A FARMER, CONTACT US, USE OLHO DO DONO, THANK YOU VERY MUCH. >>WHAT WOULD YOU LIKE TO SAY? >>I WOULD LIKE TO THINK THE TECH CRUNCH TEAM, YOU GUYS ARE AMAZING, THANK YOU FOR HAVING US, YOU DO AN INCREDIBLE JOB, AND YOU HELPED TO CHANGE OUR LIVES. THANK YOU VERY MUCH. >>YES! ALWAYS NICE TO GET A THANK YOU, RIGHT?>>>THE FINAL UPDATE IS FROM LAST YEAR’S DISRUPT SAN FRANCISCO BATTLEFIELD WINNER, DEAN NICHOLAS, THE FOUNDER OF FORETHOUGHT. ♪ ♪>>>WHAT’S UP, DISRUPT? HOW ARE WE DOING TODAY? YES, EXACTLY YEAR AGO, ON THE TECH CRUNCH DISRUPT STAGE, I LAUNCHED MY COMPANY, FORETHOUGHT, WE ARE ON A MISSION TO ENABLE EVERYONE TO BE A GENIUS AT THEIR JOB. WE BUILD A HIGH-POWERED PRODUCTS TO HELP CUSTOMER SUPPORT AGENTS AND OTHER KNOWLEDGE PROFESSIONALS FIND WHAT THEY NEED AT WORK. OUR FLAGSHIP PRODUCT, AGATHA ANSWERS, GIVES AGENTS SUGGESTED ANSWERS, REDUCING HANDLING RESOLUTION TIMES BY 20%-30%. WE HAVE LAUNCHED AMAZING ENTERPRISE PARTNERS, YOUR STORAGE, THE DATA SOLUTIONS LEADER, AND MASTER CLASS, THE ONLINE EDUCATION COMPANY THAT ENABLES ANYONE TO LEARN FROM THE BEST IN THE WORLD. THIS PAST YEAR HAS BEEN A WHIRLWIND. WE ANNOUNCED OUR 9 MILLION SERIES A, AND GROWING OUR TEAM FROM FIVE EMPLOYEES UP TO 20, AND BROUGHT ON AMAZING ADVISORS, LIKE CHRIS MANNING, ONE OF THE FATHERS OF MODERN NATURAL LANGUAGE UNDERSTANDING.>>>WE ARE ANNOUNCING OUR PARTNERSHIP WITH GUSTO, THE LEADING PAYROLL AND BENEFITS PROVIDER, AND JUST THIS LAST MONTH, WE LAUNCHED OUR SECOND PRODUCT, AGATHA PREDICTIONS, THAT HELPS TRIAGE AND ROUTE TICKETS TO THE RIGHT AGENTS SO THEY DON’T HAVE TO, AND THEY CAN GET BACK TO FOCUSING ON ANSWERS AND DELIGHTING YOUR CUSTOMERS. FORETHOUGHT PARTNERS WITH WORLD LEADING CUSTOMER CENTRIC COMPANIES TO HELP YOUR SUPPORT AGENTS BE ROCKSTAR IS IT WHAT THEY DO, AND HELP DELIGHT YOUR CUSTOMERS. IF YOUR TEAM IS DOING AT LEAST 1000 TICKETS PER WEEK, DEFINITELY COME TALK TO US AND SIGN UP FOR A CUSTOM DEMO AT FORETHOUGHT.AI.>>>AMONGST ALL THE AMAZING THINGS, THE BEST THING HAS BEEN THAT PEOPLE HAVE GOTTEN A CHANCE TO WORK WITH. BUT I WILL LET YOU ALL BE THE JUDGE OF THAT. HERE IS A VIDEO OF THE FORETHOUGHT TEAM RETURNING THE TECH CRUNCH DISRUPT CUP BACK HOME, THANKS EVERYONE. ♪ ♪♪ ♪♪ ♪♪ ♪♪ ♪♪ ♪ ♪ ♪♪ ♪♪ ♪♪ ♪♪ ♪♪ ♪ ♪ ♪♪ ♪♪ ♪>>>LADIES AND GENTLEMEN, PLEASE WELCOME EDITOR-IN-CHIEF, MATTHEW PANZARINO, AND STARSHIP BATTLEFIELD, AS WELL. >>THANK YOU FOR BEING HERE FOR THE FINALS OF THE STARTUP BATTLEFIELD COMPETITION, A GREAT GROUP OF COMPANIES, REALLY STRONG, SPENDING MANY WEEKS TRAINING THEM, THEY WILL GET OUT HERE, GETTING GRILLED BY OUR EXPERT PANEL, A CEREMONIAL, WE WILL INTRODUCE THE COMPANIES, IN REVERSE OF POLITICAL ORDER IN WHICH THEY WILL PRESENT. THE FIRST COMPANY IS TRAPTIC. >>A MASSIVE ROBOT TO PICK STRAWBERRIES TO HELP SOLVE THE LABOR SHORTAGE.>>>STRADI X. >>FOR STOCK PORTFOLIOS. >>NEXT WE HAVE RENDERED. >>– RENDER. >>HOSTING WEBSITES AND APPLICATIONS. >>NEXT IS ORBIT FAB. >>BUILDING GAS STATIONS AND SPACE.>>THAT SOUNDS INTERESTING.>>A RAPID DETECTION FOR CHOLERA AND WATERPIK >>LOOKING FORWARD TO SEEING THESE COMPANIES COMPETE TODAY.>>WE WILL BE BACK OUT VERY SOON WITH THESE COMPANIES, STAY TUNED, THIS IS ALWAYS THE MOST EXCITING PART OF THE SHOW, THANKS FOR BEING HERE. >>ENJOY.>>>MORE APIS ARE CREATED ACROSS THE ORGANIZATION, IT CAN BECOME MORE CHALLENGING, REUSE THEM FOR DEVELOPING NEW SOFTWARE. RAPID API FOR TEAMS CAN ENABLE DEVELOPMENT TEAMS, INTERNAL APIS INTO A PRIVATE WORKSPACE, DEVELOPERS CAN FIND ANY INTERNAL API, YOU THE DOCUMENTATION, AND CONNECT DIRECTLY, COLLABORATE AND SHARE THE INFORMATION RIGHT IN RAPID API, TEAM MEMBERS CAN SUBSCRIBE TO ANY PUBLIC API AVAILABLE ON THE MARKETPLACE AND THE ENTIRE TEAM CAN SEE AND USE THE SUBSCRIPTION. YOU ONLY PAY ONCE FOR ANY API YOUR TEAM USES, MAKING IT EASIER TO SHARE AND COLLABORATE ON APIS, GET STARTED TODAY ON RAPID API.COM/TEAMS. >>>OUR TEAMS LOVE BUILDING COMPANIES, WE ARE BUILDING MEANINGFUL GLOBAL BUSINESSES AND ONLINE CLASSIFIEDS, FOOD DELIVERY AND TECH. >>WE HAVE GREAT EXPERIENCE IN INVESTING IN LARGE COMPANIES, WITH e-COMMERCE. >>THEY HAVE VERY HELPFUL AND SPECIFIC ADVICE THAT THEY CAN GIVE US.>>THEY ARE FANTASTIC PARTNERS. >>MAKING LIFE BETTER FOR 1 BILLION PEOPLE, THE PERFECT PARTNER TO HELP US ACHIEVE OUR DREAMS.>>>I KNOW WE ARE ALL VERY EXCITED TO WATCH THE BATTLEFIELD FINALS, I DON’T TO TAKE TOO MUCH TIME, BUT BECAUSE THIS IS A RELATIVELY LONG SESSION, I WANT TO KEEP YOU UP- TO-DATE ON WHAT IS GOING ON, ON THE OTHER STAGES, AT 1:30 PM, EXTRA CRUNCH STAGE, SITTING WITH DAVID CANCEL, THE FOUNDER AND CEO OF DRIFT, HOW TO BE A SERIAL FOUNDER, IF YOU HAVE BEEN SUPER SUCCESSFUL AT YOUR STARTUPS AND YOU WANT TO DO ANOTHER ONE, THAT IS THE PLACE TO BE, AND 2:00, CHRIS BRITT AND ANGELA STRANGE, HOW TO BUILD A BETTER BANKING STARTUP, AND 2:40 PM, WHAT IS GROWING ON THE INTERNET, WITH ANDREW CHEN. WITH THAT, WE ARE GOING TO GET TO THE BIG TIMES, ARE YOU READY? COME ON, THIS IS THE PART WHERE YOU REALLY HAVE TO SHOW IT, LET’S GO! ALL RIGHT, ENJOY YOURSELVES, SEE YOU IN A BIT.>>>PLEASE WELCOME TECH CRUNCH SENIOR WRITER, AND YOUR HOST, ANTHONY. >>IT IS TIME FOR THE FINALS OF THE STARTUP BATTLEFIELD, I AM CURIOUS, WHO HERE, RAISE YOUR HAND, IF YOU HAVE SEEN THE PRESENTATIONS OF ALL 20 STARTUPS IN THIS YEAR’S BATTLEFIELD? WE’VE GOT A HANDFUL, YOU GUYS ARE GOOD, FOR THOSE WHO HAVEN’T, THAT’S FINE, WE ARE GOING TO HAVE — BEST IS A SLIPPERY WORD, BUT EXTREMELY GOOD STARTUPS, WE HAD 20 OVER THE PAST THREE DAYS, AND OUR JUDGES GOT TO GRILL THEM. THE IMPACT, FINANCIAL OR SOCIAL, NARROWING IT DOWN TO THESE FIVE FINALISTS. THEY ARE GOING TO GIVE A 6 MINUTE PRESENTATION, SOME ROUGH SPOTS IN THE PAST, THEY WILL SMOOTH THEM OUT FOR THIS ONE, WE WILL SEE, AND THE JUDGES WILL GET NINE MINUTES OF Q&A, AND WE WILL CHOOSE THE FINALIST, ON THE STAGE LATER TODAY, RECEIVING $100,000 EQUITY FREE, AND TEMPORARY POSITION OF THE DISRUPT CUP.>>>WITH ALL OF THAT OUT OF THE WAY, LET’S BRING OUT OUR JUDGES. FIRST, WE HAVE MAMOON HAMID (KLEINER PERKINS) , FORMERLY COFOUNDER AND GENERAL PARTNER AT THE SOCIAL CAPITAL PARTNERSHIP. NEXT WE HAVE ASHTON KUTCHER (SOUND VENTURES) , COFOUNDER, AN ACTOR, INVESTOR, ARCH FOR NEWER, REDUCER AND PHILANTHROPIST. — ENTREPRENEUR.>>>NEXT, ALFRED LIN (SEQUOIA), PRIOR TO THAT, HE WAS THE COO AND CEO AT ZAPPOS, AND CLICK EXCHANGE.>>>NEXT WE HAVE MATTHEW PANZARINO, A RETAIL JOCKEY, FOUND TODAY PHOTOGRAPHY BUSINESS, AND A NEWS BLOG COVERING THE APPLE ECOSYSTEM.>>>WE HAVE MARISSA MAYER (LUMI LABS), ANN MIURA-KO (FLOODGATE VENTURES) AND FORMER PRESIDENT AT YAHOO. THEN WELL KNOWN IN SILICON VALLEY, A PIONEER — I GET IT BACKWARDS?>>ANTHONY, I FORGIVE YOU. >>I WROTE THEM IN THE WRONG ORDER.>>FOUNDING PARTNER AT FLOODGATE, SILICON VALLEY, A PIONEER IN EARLY INVESTING, HIGHLY TECHNICAL COMPANIES, THE BACKGROUND AND A PHD OF METH MAULET — MATH MODELING AT STANFORD. GIVE IT UP FOR ALL OF OUR AWESOME — >>MATH MODELING AT STANFORD. GIVE IT UP FOR ALL OF OUR AWESOME JUDGES. >>LEWIS ANDERSON AND VIN PHAN. >>>MANUAL LABOR, 200 YEARS AGO, WE PICKED WHEAT BY HAND, EVERY SINGLE STOCK. A BUNCH OF PEOPLE OUT IN THE FIELD, WITH HAND TOOLS, DOING THINGS MANUALLY. THEN WE INVENTED COMBINES, MACHINES HARVEST QUICKLY, EFFICIENTLY, AND AT ENORMOUS VOLUME. BUT THEY LEFT THE DELICACY AND PRECISION NEEDED TO HARVEST MOST CROPS. SO PEOPLE STILL PICK MORE THAN $200 BILLION WITH FRUITS AND VEGETABLES. BY HAND EACH YEAR. WHY IS THIS A PROBLEM? TAKE STRAWBERRIES, 20% OF THE STRAWBERRIES GROWN IN THE U.S. ROT IN THE FIELDS BECAUSE THERE IS NOBODY AVAILABLE TO PICK THEM. LABOR IS ALSO SUPEREXPENSIVE, $50,000 PER ACRE, OR $.25 PER POUND, JUST FOR MANUAL LABOR FOR HARVEST. IT IS GETTING EVEN MORE EXPENSIVE, AND MORE SCARCE DUE TO AN AGING WORKFORCE AROUND THE WORLD, NATIONAL POLITICAL DYNAMICS AND CALIFORNIA LABOR LAW. INTRODUCING TRAPTIC, GIANT ROBOTS PICKING STRAWBERRIES, AUTOMATING WORK THAT PEOPLE DO NOT WANT TO DO. I ROBOTIC PLATFORM DRIVES ACROSS THE FIELD, WHILE THE VISION SYSTEM DETECTS THE BERRIES AND FIGURES OUT HOW TO REACH THEM, OUR PATENTED GRIPPER DELEGATE — DELICATELY REMOVES THEM FROM THE PLANT. WHAT DOES THIS LOOK LIKE? SWITCH TO THE CAMERA FEEDER MACHINE, A SNAPSHOT OF THE SCENE, THE VISION SYSTEM DETECTS THE BERRIES IN THE IMAGE, DECIDES WHICH TO PICK, FIGURES OUT THE POSITION OF THAT BARRY, AND DETERMINES THE STRUCTURE OF THE PLANT AND BED AROUND THEM. THEN IT PLANS A PATH TO GRAVITY, THE SOFTWARE COMMENDS THE ROBOT ARM TO MOVE THE GRIPPER TO THE BARRY. OUR GRIPPER THAN LIFTS THE BARRY OFF THE FIELD, AND CLOSES AROUND IT FIRMLY BUT GENTLY. WE THEN COME IN THE ROBOT ARM TO YANK THE GRIPPER AWAY FROM THE PLANT, AND BECAUSE WE HAVE A FIRM GRASP ON THE BARRY, THE STEM POPS OFF. WE FINISH BY DEPOSITING THE BARRY, ON THE CONVEYOR. JUST IN CASE YOU THOUGHT THIS WAS A LAB EXPERIMENT, LET’S PLAY THAT VIDEO.>>>OUR SYSTEM DOES ALL OF THIS IN REAL TIME WHILE HANGING OFF THE BACK OF A TRACTOR, AND MOVING CONTINUOUSLY OVER REAL STRAWBERRY FIELDS. IT IS ROBUST TO DUST, DIRT, RAIN, WIND, VIBRATIONS, AND THE OTHER ASPECTS OF THE TOUGH FARM ENVIRONMENT. AND IT OPERATES ALL DAY, EVERY DAY FOR MONTHS AND YEARS ON END. OUR GRIPPER IS TOTALLY UNIQUE AND PATENTED. DESCRIPTOR MUST EXTRACT VARIES FROM ME ENVIRONMENT, AT A CERTAIN ANGLE, GOING BACK TO SLIDES, A CERTAIN ANGLE TO HELP BEND THE STEM, A PLAY GREAT DEAL OF FORCE TO BREAK THE STEM OF THE BARRY, AND DO ALL OF THIS WHILE BEING VERY DELICATE. — OF THE BERRY. >>>GIVING IT MECHANICAL COMPLIANCE, GRABBING OBJECTS OF VARYING SIZE AND SHAPE, WITHOUT NEEDING ANY INFORMATION ABOUT THE OBJECTS PROPERTIES. WE CLOSE THE FINGERS WITH A DEFINED AMOUNT OF FORCE, ALLOWING US TO GRAB OBJECTS OF DIFFERENT SIZES WITHOUT CRUSHING OR DROPPING THEM. THIS LETS THE SAME GRIPPER GRAB PRODUCE ACROSS A LARGE RANGE OF SIZE AND SHAPE, WITHOUT NEEDING AND FOR — ANY INFORMATION FROM SOFTWARE OR ANY HARDWARE CHANGES. BUILT ON A ROBUST DATA SET, IT CAN FIND BERRIES AND DETERMINE RIGHTNESS WITH EQUIVALENT ACCURACY HAS PEOPLE. AND FINALLY, IT DOES ALL OF THIS LOCALLY, NO INTERNET, NO OFF-SITE COMPUTER.>>>INDUSTRY STANDARD MACHINES ARE NOT DESIGNED FOR DELICATE PRODUCE. CONVERSELY, SOME STARTUPS TARGET LOW VALUE ACTIVITIES LIKE TWEETING, ONLY WORTH $1000 OR $2000 PER APRIL — ACRE, OR APPLES WHERE THEY ONLY DO IT A FEW MONTHS OF THE YEAR. WE FOCUS ON YEAR-ROUND STRAWBERRY HARVEST, NO CHANGE IN GROWING PROCESS, PROVIDING A SMOOTH PATH FOR DEPLOYMENT.>>> OUR MASTER PLAN, GET $3 BILLION IN REVENUE BY PICKING STRAWBERRIES, $20 BILLION IN REVENUE BY PICKING OTHER VEGETABLES, AND $200 BILLION IN CROP VALUE BY AUTOMATING AND IMPROVING REMAINING ACTIVITIES.>>>ROBOTS IS A SERVICE, WE PICK STRAWBERRIES, AND GROWERS WILL PLAY — PAY US $.23 PER POUND, SLIGHTLY LESS THAN THE CURRENT SPEND, WE PROVIDE ALL ASPECTS OF THE SERVICE, MACHINE, TRACTOR, DRIVER, ETC. WE HAVE DEVELOPED TESTING PARTNERSHIPS OVER THE LAST THREE YEARS WITH THE LARGEST COMMERCIAL GROWERS, INCLUDING NATURE RIGHT, ANDREW SCHOOL — AND DREW SCHOOLS — DRISCOLL’S. IT WILL DEPLOY NEXT YEAR.>>>VIN, BRIAN AND I BUILT AUTONOMOUS AIRPLANES FOR A PROCESS, AND AEROSPACE SYSTEMS, AND I WENT TO MICROSOFT, AFTER STARTING, WE RECRUITED FROM UC BERKELEY, UNIVERSITY OF MICHIGAN, SPACE X, GM AND BOEING. — DRISCOLL’S. NATHAN, PETER, THE FUTURE OF ROBOTICS IS OUTDOORS, JOIN TRAPTIC, AND HELP SAVE THE WORLD’S FOOD PRODUCTION SYSTEM. >>[ APPLAUSE ]>>JUDGES, WHILE YOU ARE SAMPLING THE WARES, ANY QUESTIONS?>>CAN YOU TALK A LITTLE ABOUT THE CAPITAL OUTLAY THAT IT WILL TAKE YOU TO DEPLOYING A SIGNIFICANT NUMBER OF INSTALLATIONS? >>ABSOLUTELY, THE ECONOMICS OF THIS IS SOMETHING THAT WE HAVE THOUGHT ABOUT DETAIL, AND BECAUSE WE ARE ABLE TO OPERATE THE MACHINE YEAR-ROUND, AND 24 HOURS A DAY, THE ECONOMICS REALLY WORK OUT WELL, EVEN AFTER THE COST TO OPERATE THE SERVICE, WE WILL BE ABLE TO PAY BACK THE CAPITAL EXPENSE OF THE MACHINE AND AROUND SEVEN MONTHS. >>CAN YOU WALK ME THROUGH THAT? I DON’T KNOW A LOT ABOUT THOSE TYPES OF MACHINES, BUT IT LOOKED VERY BIG, HOW MUCH DOES IT COST ACTUALLY TO BUILD ONE OF THOSE? WEAKER WE EXPECT IT WILL COST US $400,000 TO BUILD ONE OF OUR MACHINES. >>YOU ARE SAYING THAT, HOW DOES IT OPERATE WITHIN — FOR A FARMER TO PAY $.23 PER POUND, HOW LONG DOES IT TAKE FOR THEM TO GENERATE, HOW MUCH IN TERMS OF POUNDS OF STRAWBERRIES?>>YES, THE WAY WE THINK ABOUT THIS, FROM TWO SIDES, WITH THE CUSTOMER CARES ABOUT, AND WHAT WE CARE ABOUT. SO THE CUSTOMERS CARE ABOUT THE COST PER POUND OF BERRIES, AND THE QUALITY OF THE BERRIES. THE COST IS VERY STRAIGHTFORWARD, WE ARE USING THE SERVICE MODEL WE DECIDE AHEAD OF TIME WHAT WE ARE GOING TO CHARGE THEM, THIS IS IN LINE OF WHAT THEY EXPECT. ON THE QUALITY SIDE, WE HAD ONE OF OUR CUSTOMERS DO A DETAILED EVALUATION, AND THE QUALITY IS EQUIVALENT TO PEOPLE, YOU HAVE THAT SOLVED. AND THE SKILL ASPECT, HOW MUCH IT IS PICKING, SOMETHING WE CARE ABOUT A LOT, WE THOUGHT DEEPLY ABOUT. AND THE PRODUCTION GENES. A PRETTY LARGE MACHINE, OPERATING 24 HOURS PER DAY, AND WE GET YEAR-ROUND USAGE, AND THAT IS WHERE THE ECONOMICS COME IN, WE WILL BE ABLE TO PAY BACK THE CAPITAL EXPENSE OF THE MACHINE IN ABOUT SEVEN MONTHS.>>DOES THAT INCLUDE MAINTENANCE AND DOWNTIME ON THE MACHINE. >>ABSOLUTELY. >>WHAT HAPPENS TO THE PRIOR X FROM THESE FARMERS?>>THE FARMERS’? >>YES. >>– CAPEX. >>USING THEM FOR TONS OF ACTIVITIES, TILLING THE SOIL, SPRING THINGS IN THE PLANS, MOVING THINGS AROUND THE FARM, WHEN WE ADD OUR SERVICE TO A FARM, THEY WILL CONTINUE TO USE THEIR EXISTING TRACTORS FOR THE NORMAL EXISTING ACTIVITIES, AND WE WILL SIMPLY BE ONE MORE ACTIVITY ON THAT FARM. THIS IS PART OF THE REASON THAT WE ARE PROVIDING THE TRACTOR AND THE MACHINE AND THE DRIVER, THEY DON’T HAVE SPARE TRACTOR CAPACITY AVAILABLE, WE WILL COME IN, PROVIDE EVERYTHING THAT WE NEED, AND THEY DON’T REALLY NEED TO DO ANYTHING, IT’S A SIMPLE TRANSACTION, WE PICK STRAWBERRIES, AND THEY PAY IS A COST PER POUND, FITTING VERY NICELY INTO THEIR EXISTING BUSINESS. >>HOW DO YOU THINK ABOUT SCALING THE BUSINESS, IN ROBOTICS, IT IS RELATIVELY STRAIGHTFORWARD TO GET A DEMO WORKING, AND YOU HAVE A PRETTY BIG MACHINE THAT YOU WANT TO GET SMALLER, TO GET TO MORE FARMS TO MANUFACTURE IT, HOW DO YOU SKILL THAT IN THAT DIMENSION, AND HOW DO YOU GET INTO THE OTHER FRUITS AND VEGETABLES?>>YOUR GRIPPER TECHNOLOGY IS PROBABLY GOING TO BE VERY DEPENDENT ON THE THING YOU’RE TRYING TO PICK? >>SO IN TERMS OF SCALING THE MACHINE, WHAT WE HAVE SEEN IN AGRICULTURE IS THAT MACHINES ARE TYPICALLY VERY LARGE, WE THINK OF SCALING MACHINE, WE THINK ABOUT GETTING A BIT BIGGER, THIS IS WHAT TENDS TO WORK REALLY WELL IN AGRICULTURE, IT IS WHAT FARMERS EXPECT, WHAT TENDS TO WORK WELL. WE DON’T NEED TO DOWNSIZE THE MACHINE OR ANYTHING. IN TERMS OF SCALING ECONOMICALLY, THE SHORT PAYBACK. HERE IS REALLY IMPORTANT, IT ALLOWS US TO EXPAND QUICKLY WITH THE EQUITY FINANCING OR DEBT FINANCING OF THE MACHINES, THE FACT THAT WE ARE NOT REQUIRING A CHANGE IN GROWING PRACTICES IMPORTANT, BECAUSE IT MEANS WE CAN DEPLOY AT FARMS VERY QUICKLY AND VERY LITTLE FRICTION, YOU DON’T NEED TO CHANGE ANYTHING ABOUT THEIR FIELD OR ANYTHING LIKE THAT, WE CAN SHOW, TRY THE MACHINE, AND THEY WILL SEE IT WORKS WELL. SO THAT IS WHY WE ARE GOING TO BE ABLE TO SKILL VERY QUICKLY WITHIN STRAWBERRIES.>>>FOR OTHER CROPS, STRAWBERRIES OR A $3 BILLION MARKET, A GREAT MARKET TO START IN, THAT ALLOWS US TO GET TO HUNDREDS OF MILLIONS OF DOLLARS IN YEARLY REVENUE JUST IN BERRIES. OF COURSE, THE NEXT TWO STEPS ARE GOING AFTER THE $20 BILLION FOR HARVESTING THE REST OF FRUITS AND VEGETABLES, AND $200 BILLION BY AUTOMATING AND IMPROVING OTHER ACTIVITIES, THE WAY OUR TECHNOLOGY ALLOWS THAT IS THE GRIPPER WE HAVE DEVELOPED ACTUALLY WORKS REALLY WELL FOR A LOT OF DIFFERENT FRUITS AND VEGETABLES, WE STARTED WITH ONE OF THE HARDEST ONES WE COULD THINK OF, STRAWBERRIES, VERY CHALLENGING, AND THE GRIPPER WE DEVELOP FOR STRAWBERRIES TENDS TO WORK FREE WILL FOR OTHER FRUITS AND VEGETABLES, BECAUSE IT CAN HANDLE LOTS OF DIFFERENT SHAPES AND SIZES, AS WE EXPAND FROM STRAWBERRIES TO OTHER FRUITS AND VEGETABLES, WE WILL BE ABLE TO REUSE 80% OF THE GRIPPER TECHNOLOGY, AND RETRAIN THE VISION SYSTEM TO OPERATE ON DIFFERENT FRUITS AND VEGETABLES, LIKE 75% OF THE TECH THERE. FINALLY, DEVELOPING 2 FORM FACTORS OF ROBOTIC PLATFORM, GROUND, VINES AND TREE FRUIT. EVEN THAT REUSES SOME TECHNOLOGY, WE WILL END UP WITH THREE FORM FACTORS, THAT WILL ALLOW US TO OPERATE IN ALL OF THESE FIELDS.>>I LIKE THAT YOU’RE WORKING IN A NOVEL AREA, ON AN APPLICATION FOR ROBOTICS, I WOULD LIKE TO UNDERSTAND, YOU STARTED AT ONE POINT IN YOUR PITCH, TALKING ABOUT THE FACT THAT 20% OF STRAWBERRIES DIE ON THE PLANT, WHAT IS YOUR COMPREHENSIVENESS? YOU CAN PICK IT WITHOUT DAMAGING IT, BUT I’M WONDERING, ARE THERE MORE BERRIES OR LESS BERRIES LEFT RELATIVE TO HUMAN PICKERS? WEAKER THE WAY WE THINK ABOUT THAT IS THAT THE >>THE WAY WE THINK ABOUT THAT, AND THIS IS INFORMED BY THE COMMERCIAL GROWERS WE ARE WORKING WITH, WE WILL START BY HARVESTING HALF UP TO TWO THIRDS OF THE BERRIES IN A PARTICULAR SECTION OF THE FIELD, PEOPLE WILL GO THROUGH AFTERWARDS AND PICK THE REMAINING BERRIES. WE WILL BE ABLE TO AUGMENT THEIR EXISTING WORKFORCE, WHICH ALLOWS THE GROWERS TO HARVEST MORE ACRES OF STRAWBERRIES WITH THE SAME WORKFORCE, ALLOWING THEM TO GET THE REMAINING BERRIES OUT OF THE FIELD, AND EXPAND OPERATIONS.>>FOR YOUR MARKET SIZING, ARE USING THE CURRENT MARKET THAT INVOLVES HUMAN LABOR, OR ARE YOU ACCOUNTING FOR THE FACT THAT BY HAVING AUTOMATED LABOR, IT WOULD CHANGE THE SIZE OF THE MARKET? >>THE $3 BILLION IS ROUGHLY WHAT THEY ARE PAYING FOR HUMAN LABOR TODAY. >>CAN YOU TALK ABOUT THE SALES LIKE HER? — CYCLE?>>DOING A WHOLE BUNCH OF TESTING IN FIELDS, TRACTORS, DRIVERS, CONTINUOUS FEEDBACK FROM THEM. WHAT WE HAVE SEEN, WHEN WE BEGIN INTERACTING WITH A NEW GROWER, THEY TYPICALLY WANT TO TALK US — TALK TO US FOR A FEW MONTHS, MAYBE SEE A DEMO, TRIED OUT, AFTER ABOUT THAT AMOUNT OF TIME. >>PROOF OF CONCEPT, FOLLOWED BY A SALE? >>THAT IS WHAT WE EXPECT, YES. WE ARE PRE-REVENUE. YES. >>AND WHEN YOU SAY IT OPERATES YEAR-ROUND, ARE YOU ASSUMING THAT YOU WILL BE OPERATING WITHIN A GREENHOUSE ENVIRONMENT?>>ANSWER QUICKLY. >>IT’S ALL OUTDOORS, STRAWBERRIES ARE HARVESTED IN CALIFORNIA YEAR-ROUND, IN WATSONVILLE, IN NORTHERN CALIFORNIA AND SOUTHERN CALIFORNIA, ALL OUTDOORS, WHICH IS BASICALLY HOW ALL STRAWBERRIES ARE GROWN IN THE U.S., IT WOULD WORK INDOORS, BUT WE ARE FOCUSING ON OUTDOORS. >>GIVE IT UP FOR TRAPTIC! >>>AND ONE SECOND TO RESET THE STAGE, HOW ARE THE STRAWBERRIES, GOOD? I TRIED THEM LAST TIME, IT’S A LITTLE MESSY.>>IS MORE YOUTH IN THE STRAWBERRIES. >>I DON’T KNOW HOW TO EAT THEM. [ LAUGHTER ]>>>WE ARE READY TO BRING OUT THE NEXT COMPANY, THE NEXT STARTUP, STRADI X.>>[ APPLAUSE ]>>>GOOD AFTERNOON, EVERYONE, MY NAME IS ARIEL WRIGHT, I’M A SENIOR STUDYING COMPUTER SCIENCE AT HARVARD, AND THE FORMER QUANT IN CRYPTO CURRENCY AT GOLDMAN SACHS. I WANT TO TALK TO ABOUT TRADING, EARLIER THIS MONTH, WITHIN DAYS, DONALD TRUMP TWEETED ABOUT THE NEGOTIATIONS WITH THE TRADE WAR, AND CHINA, FOLLOWING THROUGH, AS A RESULT, ONE MAN WITH ONE TWEET SINGLE- HANDEDLY MOVED THE S&P 500 DOWN BY 4% IN JUST TWO DAYS. THAT IS AN EQUIVALENT OF $90 BILLION LOST ACROSS OUR NATION. HOWEVER, FIRMS LIKE J.P. MORGAN WERE NOT AS IMPACTED. WHY? BECAUSE THEY HAVE A INDEX TRACKING TRUMPS TWEETS. BUT THIS IS THE ONLY INSTANCE OR CASE OF THIS. TAKE FOR INSTANCE THE BOEING PLANE CRASH WHICH OCCURRED EARLIER THIS YEAR, DROPPING BY 5%, APPROXIMATELY $10 BILLION IN LOSSES IN OUR NATION, IN JUST 24 HOURS. THIS CAN EASILY BE PREVENTED WITH SIMPLE ALGORITHMS. HOWEVER, ONLY 7% OF OUR WORLD CAN CODE, BUT 85% OF OUR MARKET IS LED BY MACHINES, WHERE DOES THAT LEAVE EVERYBODY ELSE? FROM THE EVERYDAY TRADER ON ROBIN HOOD, TD AMERITRADE, THE AVERAGE MANAGER AT A HEDGE FUND, WHO JUST STARTED A COUPLE OF WEEKS AGO. EVERYONE IN THE SPACES BEING LEFT BEHIND. WHICH IS WHY WE CREATED STRATTYX , DEMOCRATIZING ALGORITHMIC TRADING. WE DO THIS BY PROVIDING EASY-TO- USE, QUANTITATIVE TOOLS FOR EVERY DAY NON-CODING INVESTORS. THE PROCESS ESSENTIALLY IS BROKEN INTO THREE PHASES, CREATING A STRATEGY, BACK TESTING THE STRATEGY, AND AUTOMATION. I CAN SHOW YOU A LITTLE BIT ABOUT IT. CAN WE MOVE TO THE DEMO? THANK YOU. >>>STRATTYX, BRING YOUR OWN BROKER, OUR BROKER, ROBIN HOOD YESTERDAY, LET’S CREATE A STRATEGY. TODAY WE WILL BE USING, THE SOLAR PANEL SERIALS THAT WE USED YESTERDAY, AND GO FOR 10 SHARES, NOTICE HERE THE WAY THAT STRATTYX INTERFACES CENTERS AROUND THE IDEA OF MAKING IT IS EASY TO USE AS POSSIBLE, AND RELATABLE IN ENGLISH, YOU CAN CREATE BESPOKE RULES, TWO BY WHEN, AND SELL WHEN FOR ANY STRATEGY IN THE STOCK. FOR INSTANCE, YOU CAN DO TWITTER, NEWS AND COMBINED THEM INTO BESPOKE MATERIALS. — TO BUY WHEN. WE INDICATED WE WANT TO BUY, DEMOCRATIC ELECTION, CLIMATE CHANGE, AND CLEAN INJURED — CLEAN ENERGY, IN THE NEWS, AND WE WANT TO SELL WHEN THE NEWS MENTIONS THINGS RELATING TO GEOPOLITICAL INSTABILITY, TRUMP, TRADE WAR, ECONOMY GOING DOWN. AWESOME.>>>FROM HERE, WE CAN BACK TEST TO SEE OUR RESULTS. AND UNLIKE ANY OTHER SORT OF TOOL IN THE SPACE, STRATTYX ALLOWS USERS TO BACK TEST BEFORE THEY GO ON WITH THE STRATEGY, IT IS BUILT IN THE HOUSE AND GROUNDED IN OUR PROPRIETARY SCRIPTING LANGUAGE, THAT ALLOWS YOU TO NOT ONLY BUILD MATERIALS OFF OF DYNAMIC THINGS SUCH AS TRUE AND FALSE, BUT ALSO OFF OF PURE MATERIALS IN OUR REAL WORLD. OUR LANGUAGE, IS COMPLETE, YOU CAN ADOPT AND CREATE EXPRESSIONS FOR ALMOST ANYTHING.>>>ESSENTIALLY, OUR RETURNS, IF I CAN HAVE A LOOK, 10, THAT’S PRETTY GOOD. WHAT WAS THE PRICE OF THE STOCK? ONLY UP 5%. SO SINCE — ESSENTIALLY, THE STRATEGY PROVIDED SOLID RETURNS, AND IN MANY CASES IT CAN BE JUST HOLDING A SIMPLE STOCK.>>>WE HAVE PROTECTION MECHANISMS FOR USERS TO ALLOW THEM TO EXTRAPOLATE FURTHER. LET’S MOVE BACK TO THE SLIDES. THE PLANS START FROM FREE ALL THE WAY TO DAY TRADER, AND OTHER MATERIALS AND TAILORED PACKAGES FOR LARGER ACCOUNTS. OUR MARKET SITS AT ABOUT $52 BILLION FOR THE EVERY DAY 100 MILLION INVESTORS, FROM THERE IT EXPANDS GLOBALLY TO APPROXIMATE — APPROXIMATELY 500 MILLION INVESTORS. ONE GREAT THING ABOUT STRATTYX IS THAT IT IS NOT ONLY EASY-TO- USE, FULL AUTONOMY, BROKER DIAGNOSTIC, AND THE ONLY ONE IN OUR SPACE. AND A BIT OF INFORMATION ABOUT US, WE HAVE GARNERED 10,000 PEOPLE ON THE WAITLIST WITH ZERO MARKETING SPEND, AND A BETA NET PROMOTER SCORE OF 7.5. MADE UP OF ACCOMPLISHED HARVARD RESEARCHERS, COMPUTER SCIENTISTS, AND HAVE WORKED ON ACCOUNTS AS LARGE AS $200 MILLION. STRATTYX IS HERE TO DEMOCRATIZE ALGORITHMIC TRADING, WE INVITE ALL OF THE INVESTORS AND TRADERS OF THE WORLD TO COME ON OUR PLATFORM TO RECLAIM YOUR ALPHA, THANK YOU.>>[ APPLAUSE ]>>JUDGES?>>THE NEWS SOURCES, HOW DO YOU DECIDE WHAT NEWS SOURCES COUNT AS NEWS AND WHAT DOESN’T, AND CAN THE USER ACTUALLY SEE WHICH NEWS SOURCES ARE BEING UTILIZED? >>YES, OF COURSE, I CAN BREAK THIS INTO TWO PARTS, NUMBER 1, BEFORE WE CONSIDERED CREATING THIS BESPOKE MECHANISMS RUNNING NEWS, WE TOOK THE MOST INTERESTING AND WELL VISIT NEWS SOURCES GOT CNN, CNBC, WALL STREET JOURNAL, WE CREATED AND CURATED THE LIST, AND FROM THERE DECIDED TO INCLUDE THOSE WITHIN THE RESOURCES. >>DO YOU WAIT THEM DIFFERENTLY? >>WE GIVE EACH ONE A QUALITY SCORE, 0-10 SCORE, BASED ON THE IMPACT AND THE ACTUAL QUALITY OF THE POSTS. IF THE GORIZE IT LEFT WING MEDIA TV CABLE NEWS AND MUCH MORE GRANULAR NEWS COURSES IF YOU WOULD LIKE. >>I LIKE THAT YOU ARE ATTACKING A BIG MARKET AND YOU ARE TAKING THINGS THAT THE INSTITUTION HAS HAD FOR A LONG TIME AND ONE OF THE THINGS IS SENTIMENT ANALYSIS IS NOTORIOUSLY DIFFICULT. YOU CAN TELL FOR EXAMPLE THAT A TRADE WAR IS BEING TALKED ABOUT OR A PARTICULAR COMPANY BUT YOU CAN’T TELL IF IT IS POSITIVE OR NEGATIVE. SO FOR EXAMPLE WHAT HAVE YOU DONE AND THE TRUMP EXAMPLE YOU THREW OUT. >>I CAN TAKE THIS ONE. >>ESSENTIALLY WE THOUGHT HARD ABOUT THIS CONCEPT AS WELL AND WE THINK THAT HISTORICAL SENTIMENT ANALYSIS IS ESSENTIALLY TERRIBLE SO WE DECIDED TO COME UP WITH OUR OWN EXCLUSION THAT CENTERS AROUND BEING ABLE TO GET OUR USERS TO GET ACCURATE FORWARD-LOOKING SENTIMENT ANALYSIS AS HISTORICAL IS TERRIBLE AS I NOTED EARLIER. SO WITH THAT THE WAY THAT SORT OF LOOKS IS BEING ABLE TO LITERALLY LET USERS GIVE THEIR ANALYSIS ON DIFFERENT ARTICLES AND TWEETS ESSENTIALLY SOMETHING THAT USERS CAN CHECK OUT ESPECIALLY ON THE APPLICATION AND THE MORE THAT USERS CONTRIBUTE TO THIS MODEL THAT WE HAVE NOT ONLY TO PROVIDE FOR THE COMMUNITY OBVIOUSLY THE BETTER THE RESULTS GET FOR THE WHOLE SPACE. >>BUT YOU ARE GOING TO LEARN A MODEL NOT WAIT FOR A FEEDBACK LOOP BECAUSE I’M ASSUMING THAT WON’T BE FAST ENOUGH. >>BY FEEDBACK LOOP DO YOU MEAN. >>IF YOU ARE WAITING FOR THE USERS TO CAT GORIZE WHETHER THIS ARTICLE IS MOVING POSITIVELY OR NEGATIVELY IT’S SHOW TO RESPOND IN THE TRADES. >>IF WE HAVE MANUALLY APPROVING THE STRATEGY, RIGHT? SO IF YOU WOULD LIKE TO IF YOU CLICK THE LINK THEN IT’S A GOOD LINK FOR YOU. WE CAN USE THAT INFO AS WELL. AND IF YOU HAVE TO CLICK THE LINK TO BUY THE STOCK. >>FOR INSTANCE I MENTIONED EARLIER ABOUT HOW BEFORE USERS CAN MAKE A TRADE THAT’S AUTOMATED THEY CAN INSTEAD CHOOSE TO REVIEW IT MANUAL TRIGGER IF YOU WILL. WE ALSO USE THE DATA FROM THAT TO FOR OUR MODELS ESSENTIALLY. >>WHY NOW? >>THAT’S EASY. ESSENTIALLY WITH THE SORT OF WAVE AND PUSH OF NOT ONLY THE ROBIN HOOD LIKE THEY LITERALLY PUSHED $2 BILLION IN TRADES PER YEAR. SWAB MADE TRADEY FREE BUT PEOPLE NORMALLY LOSE AT NEGATIVE 7.4% AND 80% OF THE MARKET IS MADE BY BOTS AND THEY NORMALLY PERFORM BETTER, BEING ABLE TO PUT TOOLS TO NOT ONLY ALLOW PEOPLE TO TEST AND AUTOMATE INTO THEIR HANDS TO ESSENTIALLY HELP THIS LARGE WAVE OF PEOPLE THAT HAVE BEEN SEARCHING FOR A SOLUTION AS NOTED BY OUR WAIT LIST AND OTHER GROUPS OF PEOPLE THAT HAVE BEEN APPROACHING US WE’LL ESSENTIALLY ALLOW A MORE FORWARD-LOOKING FUTURE FOR BETTER TRADING IN GENERAL. >>SO I AGREE WITH YOU THERE ARE SOME TRENDS IN YOUR FAVOR BUT AREN’T YOU FIGHTING TRENDS AGAINST YOUR FAVOR, ACTIVE MANAGEMENT HAS BEEN GOING DOWN, HEDGE FUND INDUSTRY HAS BEEN SHRINKING. MOST PEOPLE ARE PUTTING MONEY IN INDEXING VERSUS ACTIVELY TRADING. >>SO I DON’T THINK THAT THAT DATA IS ACCURATE ANYMORE CONSIDERING NUMBER ONE BONDS ARE WORTHLESS NOW. SO BEING ABLE TO ACTUALLY TRUST AND PUT YOUR MATERIALS AND MONEY IN WHAT MANY WOULD CONSIDER A MASSIVE ACCOUNT IS BECOMING A LESS OF A NORMAL IS ESPECIALLY OUR AGE GROUP WHERE 74% OF THEM USE FORWARD TECH SOLUTIONS INSTEAD. PARTICULARLY WE’VE HAD MANAGERS APPROACH US BECAUSE THEY ONLY DO PASSIVE AND WANT TO PROVIDE A SOLUTION FOR THEIR ACTIVE CLIENTS TO BE ABLE TO FURTHER. >>IF THE MARKET IS VOLATILE WHICH IS WHAT A LOT OF PEOPLE ARE CONCERNED OF THAT’S ACTUALLY GOOD FOR US BECAUSE THERE’S MORE MOVEMENT, MORE POTENTIAL GAINS. >>AND HOW DO YOU PLAN ON ACQUIRING CUSTOMERS? >>SO WE HAVE A FEW DIFFERENT PATHWAYS. SURNL WE HAVE A COMMUNITY THAT FOLLOWS IN PLACES LIKE REDDIT AND DISCORD CHAMPIONING US TO GET TO WHERE WE ARE TODAY. WE ALSO HAVE DIFFERENT GROUPS AND COMMUNITIES WITHIN COLLEGE CAMPUSES AS WELL AS LARGE GROUPS OF PEOPLE THAT WERE ROBIN HOODS IF YOU WILL PUSHING FOR THE ROBIN HOOD AFTER TOOL SO BEING ABLE TO HARBOR AND PUSH THAT COMMUNITY FURTHER BY CONTINUING TO GROW IT REFERRALS USING THE SIMILAR GROWTH MODEL AS ROBIN HOOD PARTNERING WITH OUR BROKERS TO EXPAND IT FURTHER ESSENTIALLY IS WHAT WE ARE LOOKING FOR. THEY’VE BEEN COMING TO US A LOT SO WE ACTUALLY DON’T EVEN HAVE ENOUGH RESOURCES CURRENTLY TO EVEN TAKE ON ALL OF THEM SO WE’RE HAVING TO BE PICKY ABOUT EVEN GIVING AND TAKING ON CLIENTS AND FROM THERE WE THINK THAT PROBABLY A MIXTURE OF REFERRALS AS WELL AS SPENDING TIME PERFECTING PRODUCT MARKET FIT FOR THOSE CLIENTS WILL BE ENOUGH. >>WHAT RISK DO YOU EXPOSURESELF TO IF YOU FAIL TO EXECUTE ON A STRATEGY MAYBE AT THE WRONG TIME OR THE WRONG PRICE? ARE THERE ANY RISKS IF YOU ARE AUTOMATICALLY TRADING ON BEHALF OF YOUR CUSTOMERS? >>CURRENTLY IN THE EYES OF THE SEC WE ARE CONSIDERED TO BE AN EXCEL OR A SOFTWARE IF YOU WILL. YOU CAN EXPAP LATE AND THROW API INTO BLOOMBERG AND CALL IT THE SAME THING IF YOU COULD CODE BUT YOU CAN’T SO YOU USE US INSTEAD, RIGHT? THAT IS EXACTLY WHERE WE FIT. YOUR BROKER IS STILL THE MAP ONE IN CHARNEL. YOU ARE ALSO THE MAIN ONE IN CHARGE AND YOU ARE PUSHING FORWARD AUTOMATED RULES THAT THE EYES IN THE SEC THESE RULES ARE CONSIDERED TO BE YOUR RESPONSIBILITY. >>BUT ISN’T THERE AMBIGUOUS YEUT I HAVE LIKE AN IFTT SET-UP FOR MY SMART HOME AND EVERY TIME I OPEN MY GARAGE DOOR MY BATHROOM LIGHT WOULD COME ON BECAUSE I DID IT WRONG. AREN’T THERE LIABILITIES IN THE AMBIGUITY OF THE NEWS? IF YOU AS AN ENTITY READ THAT NEWS WITHOUT THE NEW YANS OF THE BIAS OF THE ARTICLE AND THEN IT TRIGGERS A TRADE YOU SUDDENLY NOW ARE LIABLE BECAUSE YOUR TECHNOLOGY MISREAD THAT HEADLINE SO ISN’T THERE LIABILITY IN THAT? >>IF YOU USE MICROSOFT EXCEL YOU CAN ACTUALLY USE EXCEL TO MAKE TRADES FOR YOU AS WELL AND IF YOU HAD DATA COMING FROM ANOTHER SOURCE FEEDING INTO YOUR MICROSOFT EXCEL SPREAD SHEET AND MADE A TRADE YOU DIDN’T AGREE WITH WOULD YOU SUE MICROSOFT? >>IT DOESN’T INTERPRET THE DATA. >>ESSENTIALLY NO IT USES A WORD AND PICKS OUT THE ONES YOU LITERALLY NOTED AND FROM THERE KEYWORD MATCHING AND FROM THERE. >>ARE YOU DOING SENTIMENT ANALYSIS OR NOT THEN? >>NO. >>CURRENTLY NO. >>CURRENTLY NO. >>SO IT’S JUST KEYWORDS? >>RIGHT. >>IT’S NOT. >>FOR NOW. WE’RE DOING CORE FEATURES IN THE APP RIGHT NOW AND THE REST OF IT WE PLAN TO HAVE WITH EXTENSIONS. >>AND ALSO FORMALLY WITH PARTNERING WITH PWM TO ALLOW US TO FORMALLY HAVE ADVISOR AND BROKER DEALER MATERIALS AND ALSO ALLOW US TO OFFER FURTHER MATERIALS WITHIN THE ML SPACE. >>ALL RIGHT ONE MORE ROUND OF APPLAUSE FOR STRATTYX. LET’S BRING OUT OUR THIRD FINALIST PRESENTED FOR THE GOAL ADRIAN DE JONG.>>>LARGE PUBLIC CLOUDS LIKE AWS ARE WORTH OVER $500 BILLION. BUT USING THEM IS LIKE PULLING TEETH. BUSINESSES ARE FORCED TO SPEND BILLIONS OF DOLLARS IN ENGINEERING SALARIES JUST TO MANAGE SERVERS ON AWS. I SAW THIS FIRST HAND AT STRIPE WHEREAS EMPLOYEE NUMBER 8 I HELPED LAUNCH THE COMPLAINT AND GROW IT TO A $5 BILLION VALUATION BUT NOT WITHOUT A MASSIVE TEAM. AFTER STRIPE I DID A LOT OF MY OWN APPS TO FIGURE OUT WHAT I WANTED TO DO NEXT. BUILDING THESE APPS WAS EASY BUT HOSTING THEM WAS AGONIZING. I HAD TO SPIN UP DMS, INSTALL DEPENDENCIES, SET-UP NETWORKING, SSL, LOAD BALANCERS, JUST A TON OF THINGS FOR EVERY SINGLE APP. IT WAS TEDIOUS. IT WAS ERROR PRONE, AND IT NEEDED TO STOP. THIS IS HOW RENDER WAS BORN. RENDER IS A COMPLETELY AUTOMATED CLOUD PROVIDER. YOU CAN USE IT TO HOST ANYTHING FROM A SIMPLE STATIC WEBSITE TO COMPLEX APPLICATION CLUSTERS. AND YOU CAN DO IT FASTER THAN ON ANY OTHER CLOUD AND WITHOUT MANAGES SERVERS AT ALL. RENDER FITS INTO YOUR EXISTING WORK LOAD. SIMPLY PUSH YOUR CODE TO GET WE AUTOMATE EVERYTHING FROM THERE. THIS INCLUDES BUILDING AND DEPLOYING YOUR CODE, SECURING AND UPDATING THE UNDER LYING SOFTWARE, SCALING YOUR APPS AND AUTOMATICALLY LOAD BALANCING BETWEEN THEM AND FINALLY ALERTING YOU TO POTENTIAL PROBLEMS. I REALIZE I’M MAKING A BOLD CLAIM SO LET’S SEE THIS IN ACTION. YOU MAY HAVE HEARD OF MATTER MOST AND TYPICALLY MATTER MOST REQUIRES A WHOLE TEAM OF ENGINEERS TO SET-UP AND MANAGE BUT RENDER MAKES THIS EFFORTLESS. ALL I NEED TO DO IS TO CLICK THE DEPLOY TO RENDER BUTTON. IT BRINGS ME TO MY RENDER DASHBOARD LISTING ALL OF THE SERVICES IT’S GOING TO DEPLOY. I CLICK APPROVE AND THAT’S IT. RENDER IS NOW DEPLOYING MY MATTER MOST CLUSTER WHICH INCLUDES A DATA BASE OBJECT STORAGE A SEARCH ENGINE AND MULTIPLE WEB SERVERS. RENDERS ALSO PROVISIONING LOAD BALANCERS AND SSL BEHIND THE SCENES AND I DON’T HAVE TO LIFT A FINGER FOR ANY OF IT. NOW THESE SERVICES CAN TAKE A FEW MINUTES TO SPIN UP SO WE’RE GOING TO SWITCH TO AN EXISTING MATTER MOST INSTANCE RUNNING ON RENDER. IT’S UP AT RENDER MOST.COM. AND YOU CAN ALL GO THERE RIGHT NOW AND SIGN UP. IT’S READY TO SCALE TO THOUSANDS OF USERS. LET’S TALK ABOUT WHAT WE JUST SAW. INSTALLING MATTER MOST ON RENDER REQUIRES JUST MINUTES. BUT IT TAKES DAYS OF SET-UP AND CONSTANT ON GOING MAINTENANCE ON AWS. AND IT ISN’T EVEN POSSIBLE TO DO THIS ON SOMETHING LIKE ROKU BUT RENDER MAKES IT INSTANT THROUGH THREE MAJOR INNOVATIONS. ONE, EVERY RENDER SERVICE GETS BUILT IN PRIVATE NETWORKING SERVICE DISCOVERY AND LOAD BALANCING. TWO, RENDER IS THE FIRST FULLY MANAGED CLOUD TO OFFER SSDS WITH AUTOMATIC BACK UPS AND ONE CLICK RESTORES, AND THREE, RENDER LETS YOU DEFINE ALL NEW SERVICES IN JUST ONE FILE. YOU CAN UPDATE YOUR INFRASTRUCTURE BY SIMPLY PUSHING THIS FILE TO GET. HOW COOL IS THAT? NOW LET’S LOOK AT THE COMPETITION. CLOUDS LIKE AWS CLAIM TO BE DEVELOPER FRIENDLY BUT ANY DEVELOPER WILL TELL YOU JUST HOW FRUSTRATING THEY CAN BE. ON THE OTHER HAND, MANAGE CLOUDS LIKE ROKU HAVE STAG NATEED UNDER SALES FORCE AND ARE MISSING ESSENTIAL FEATURES LIKE SSDS AND PRIVATE NETWORKING. THEY’RE ALSO MUCH MORE EXPENSIVE. JUST TWO GIG BYTES OF RAM COST $250 A MONTH ON ROKU VERSUS $25 A MONTH ON RENDER. WE TRULY GIVE YOU THE BEST OF BOTH WORLDS. INCREDIBLE COMBINED WITH TREMENDOUS TAXABILITY. AND WE’RE DOING IT IN A MARKET THAT IS MASSIVE AND GROUCHING QUICKLY. RIGHT NOTCH, WE’RE FOCUSED ON THE PLATFORM AS A SERVICE MARKET WORTH $20 BILLION. LONGER TERM, WE’RE LOOKING AT THE ENTIRE CLOUD INFRASTRUCTURE AS A SERVICE MARKET ESTIMATED AT $100 BILLION JUST THREE YEARS FROM NOW. WELL, LET’S TALK REAL NUMBERS. RESIDENTERS REVENUE HAS GROWN BY OVER 50% MONTH OVER MONTH FOR THE LAST SIFN MONTHS STRAIGHT. AND THE GROWTH HAS BEEN ENTIRELY ORGANIC. OUR PLATFORM IS NOW SERVING OVER 100 MILLION H TTP REQUESTS EVERY WEEK LEADING OPEN SOURCE PROJECTS LIKE REACT, VIEW AND GATSBY HAVE ALL SELECTED RENDER AS AN OFFICIAL HOSTING OPTION AND WE’RE ALSO ONE OF FOUR OFFICIAL CLOUD PARTNERS FOR GIF LAB. WE HAVE THOUSANDS OF AMAZING USERS INCLUDING A LEADING PRESIDENTIAL CAMPAIGN THAT MOVED ALL OF THEIR INFRASTRUCTURE OVER FROM GCP TO RENDER RECENTLY. SO IF YOU ARE A DEVELOPER OR FOUNDER WHO IS FRUSTRATED WITH AWS OR ROKU AND YOU’RE LOOKING TO SAVE BIG ON TIME AND ENGINEERING COST AUTOMATE YOUR CLOUD HOSTING TODAY BY SIGNING UP ON RENDER.COM. THANK YOU. [APPLAUSE] . >>AS SAFELY AS POSSIBLE FOR THE COMPONENTS OF YOUR SYSTEM. >>THERE IS A LOT OF WORK THAT WE’VE DONE TO BUILD SCALABLE DISTRIBUTED PROXIES AND ROUTERS ON TOP OF UNDER LYING MACHINES. THERE’S ALSO A LOT OF WORK WE DO IN TERMS OF BUNDLING APPLICATION CODE AUTOMATICALLY INTO CONTAINERS WHICH IS ALL PROTECTED AS WELL AND FINALLY THERE’S A BUNCH OF BEHIND THE SCENES WORK TO MAKE SURE EVERYTHING IS UP AND RUNNING AT ALL TIMES. SO EVEN IF OUR DATA BASE GOES DOWN FOR EXAMPLE OUR USER WEBSITES ARE STILL GOING TO BE FUNCTIONAL. >>WHAT’S YOUR UNDER LYING INFRASTRUCTURE? >>RIGHT NOW WE’RE USING BOTH GCP AND AWS. LONGER TERM WE’RE MOST LIKELY GOING TO SWITCH TO OUR OWN CLUSTERS. >>OKAY. >>CAN YOU TALK A LITTLE BIT ABOUT THE TRADE OFF BETWEEN EASE AND PERFORMANCE BECAUSE WHILE IT MIGHT BE EASY FOR IT TO OVERALL BE MANAGED BUN OF THE REASONS A LOT OF TEAMS CHOOSE TO DO THIS TYPE OF LOAD BALANCING PARALLELIZING ALL OF THE DIFFERENT THINGS YOU MIGHT DO IN A PUBLIC CLOUD OPERATOR SELF HELPS YOU ACTUALLY GET A MORE PERFORMING APPLICATION. SO WHAT KINDS OF TRADE OFFS DO YOU SEE PEOPLE MAKING AS THEY MOVE FROM AWS TO RENDER IN TERMS OF SPEED OF APPLICATION AND JUST HOW EFFICIENT AND OPTIMAL THE CODES ARE? >>SURE. I DON’T THINK THAT THERE IS BETWEEN THIS IN TERMS OF HOW WE’VE IMPLEMENTED IT SO FOR EXAMPLE WHEN YOU TALK ABOUT LOAD BALANCING WE HAVE BUILT OUR OWN LAYER FOR CTP LOAD BALANCER THAT IS AS PERFORM YANT AS ANY OTHER LOAD BALANCER. AND OUR BACK END IS WRITTEN IN ONE OF THE MOST HIGHLY SCALABLE LANGUAGES LIKE SPECIFICALLY GO AND WE’RE MAKING SURE THAT THE EXTRA OVER HEAD THAT RENDER ADDS IS ALWAYS LESS THAN TEN MILL SECONDS OR LESS THAN FIVE MILL SECONDS FOR REQUEST. AND BEHIND THE SCENES THE LOAD BALANCING ITSELF DOESN’T REALLY ADD ANY ADDITIONAL PERFORMANCE ISSUES. >>YES, I UNDERSTAND THAT. I THINK I GUESS WHAT I’M REALLY GETTING AT IS YOU CAN DO ALL OF THAT WITHOUT SPHOCHING WHAT THE UNDER LYING TASKS ARE BECAUSE SOMETIMES THE TASKS THEMSELVES DEFINES WHETHER OR NOT THEY CAN BE DONE IN PARALLEL OR BALANCED A PARTICULAR WAY. >>WE ALLOCH THE FLEXIBILITY AND WE MAKE THAT EASY SO IF YOU WANT–IF YOU KNOW THAT YOUR APPLICATION IS GOING TO TAKE FOUR GIGA BYTES OF RAM YOU CAN SELECT THAT PLAN AND IF YOU KNOW THAT YOUR APPLICATION REQUIRES THREE INSTANCES THAT TAKE ONE GIGA BYTE OF RAM EACH THEN YOU CAN ALSO DO THAT ON RENDER. >>DO YOU SEE YOURSELF AS A FOURTH CLOUD PROVIDER EVENTUALLY AND IF SO WHAT SETS OF FLECKS OR SETS OF DEVELOPERS ARE YOU TARGETING THAT WILL NOT BE LAUNCHING THEIR APPLICATIONS ON GCP AZURE? >>WE’RE TARGETING START UPS AND INDIVIDUAL DEVELOPERS AND CONSULTING AGENCIES AND COMPANIES THAT DO NOT OR CANNOT HIRE ENGINEERS. ENGINEERS ARE SOME OF THE MOST EXPENSIVE ENGINEERS TO HIRE TODAY AND THEY’RE ALSO JUST REALLY HARD TO FIND AND WHAT WE ARE DOING IS TAKING THAT NEED AWAY AND MAKING SURE THAT WE’RE AUTOMATING EVERYTHING THAT YOU WOULD NEED AN ENGINEER OR CONSULTANT FOR. AND SO IF WE DO BECOME SORT OF THIS FOURTH CLOUD PROVIDER THAT YOU’RE TALKING ABOUT, WE’RE NOT REALLY DIRECTLY COMPETING WITH AWS OR GCP. WE’RE ACTUALLY RUNNING WORK LOADS ON ALL OF THESE CLOUDS SO AS AN EXAMPLE IF SOMEONE WANTS TO SAY HEY I WANT TO RUN THIS WORK LOAD AND I WANT THEM IN TWO DIFFERENT REGIONS, YOU’LL BE ABLE TO DO THAT WITH A SINGLE CLICK ON RENDER WHEREAS AWS IS NEVER GOING TO ALLOW THAT. >>I’M TRYING TO THINK OF THE TRADE OFFS HERE AND THERE’S NOT IN YOUR BIT OF EVERYTHING FOR EVERYONE. WHAT’S IT NOT GOOD FOR? >>WHAT IT’S NOT GOOD FOR RIGHT NOW IT’S NOT GOOD FOR EXAMPLE GPU BASED WORK LOADS SO WE DON’T SUPPORT THAT RIGHT NOW. DEEP LERPING IS SOMETHING THAT I THINK–SO I BUILT IN THE COMPANY THAT ACTUALLY RAN THE BASED WORK LOADS BUT IT’S SOMETHING WE WANT TO DO IN A MUCH MORE MEASURED WAY THIS TIME SO RIGHT NOW WE’RE FOCUSED ON. >>IT SEEMS LIKE YOU CAN BUILD WITH THE NECESSARY INFRASTRUCTURE UNDER LYING. >>SURE. WE CAN BUILD IT BUT RIGHT NOTCH PEOPLE DON’T HAVE THE ABILITY TO DO THAT ON RENDER. LONGER TERM WHEN YOU THINK ABOUT WORK LOADS THAT REQUIRE A VERY SPECIFIC KIND OF HARDWARE OR MAYBE THEY REQUIRE ACCESS TO A VM IN A WAY THAT I’M TRYING TO COME UP WITH WAYS BUT GIVEN CONTAINERS WHERE YOU CAN PACKAGE ALL OF THE APPLICATIONS UP ALONG WITH YOUR DEPENDENCIES IT’S NOT- -IT’S JUST NOT EASY FOR ME TO WORK ON APPLICATIONS THAT DON’T WORK ON RENDER. >>WRITE YOUR OBITUARY. >>SAY IT AGAIN. >>YOUR OBITUARY. >>YEAH. >>TWO YEARS FROM NOTCH YOUR COMPANY FAILS. >>YEAH. >>WHY DID IT FAIL? LIKE WHAT DIDN’T GO RIGHT OR WHAT DID YOU EXPECT WOULD HAPPEN THAT DIDN’T? >>I’D SAY IT MIGHT FAIL IF WE LOSE ONE OR MORE PEOPLE ON OUR TEAM LIKE LITERALLY OBITUARIES FOR THEM. [LAUGHTER] WE WILL FAIL IF WE LOSE SIGHT OF WHAT DEVELOPERS WANT AND THAT’S SOMETHING WE ARE CAREFUL ABOUT AND ALWAYS WORKING TO PLEASE DEVELOPERS. NOW AS WE GROW IF IT’S HARD FOR ME TO SCALE OUT THAT CULTURE THAT’S SOMETHING I’M VERY CONSCIOUS OF AND MAKING SURE OTHERWISE NOTHING DIFFERENTIATES US FROM AWS. WE UNDERSTAND THEM MUCH BETTER THAN ANYONE ELSE DOES AND IF WE FAIL I THINK IT’S GOING TO BE BECAUSE WE LOST SIGHT OF THAT. >>YOU KNOW, PLATFORM IS A SERVICE OF SOMETHING THAT PEOPLE HAVE TALKED ABOUT FOR TEN YEARS AND I’M JUST WOPPEDDERRING WHAT IS IT ABOUT THE MARKET TODAY THAT MAKES RENDER UNIQUELY POSSIBLE. >>YEAH. SO I THINK THE BIGGEST TWO THINGS THAT HAVE MADE THIS POSSIBLE ARE THE RISE OF CONTAINER COOPER NETTIES AND OBVIOUSLY APPLICATION PACKAGING LIKE DOCKER. THESE ARE THE TWO TECHNOLOGIES THAT HAVE ONLY NOTCH BECOME REALLY VIABLE AND DEPLOYED AT SCALE AND THERE’S A LOT OF INFRASTRUCTURE BUILT AROUND THEM TO MANAGE ALL OF THIS. SO THAT’S WHY RENDER IS POSSIBLE NOW WHEREAS BACK IN 2010 WHEN ROKU LAUNCHED THEY HAD TO BUILD ALL OF THIS FROM SCRATCH AND STILL HAD ALL OF THIS THING THAT WAS A POOR MAN’S VERSION OF A CONTAINER. >>FINAL QUESTIONS? ALREADY. GIVE IT UP FOR RENDER! [APPLAUSE]. >>WE HAVE TWO MORE FINALISTS TO BRING ONTO THE STAGE. THE NEXT ONE IS ORBIT FABRIC. PRESENTING ARE DANIEL AND JEREMY. ♪ [ MUSIC ] ♪>>>CARS ARE GREAT FOR GETTING AROUND. YOU CAN DRIVE THEM ALMOST AN UNLIMITED DISTANCE BECAUSE THERE’S A GLOBAL NETWORK FOR DISTRIBUTING FUEL. IF THAT DIDN’T EXIST AND YOU HAD TO TOUCH THE FUEL AROUND FROM THE DAY YOU BOUGHT YOUR CAR YOU WOULD BE TOWING TRAILERS STRETCHING 100- YARDS. IT IS IMPOSSIBLE TO IMAGINE THROWING AWAY A CAR WHEN YOU USE UP THE FIRST TANK OF FUEL BUT THAT’S EXACTLY THE SPACE INDUSTRY. PERSONALLY I’VE HAD TO DEAL WITH THE CONSEQUENCES OF THIS. A COMPANY I FOUNDED IN 2011 TRIED TO BUY EXPRESS AM4 A TELECOMMUNICATION SATELLITE THAT COST $400 MILLION TO BUILD AND SHOULD HAVE BROUGHT IN $6 BILLION OF REVENUE. BECAUSE OF A GLITCH IN THE ROCKET IT COULDN’T MOVE TO ITS ORBIT. IT DIDN’T HAVE ENOUGH FUEL. BECAUSE WE COULDN’T GET FUEL TO THAT SATELLITE, WE HAD TO THROW IT AWAY. TO AVOID IT BECOMING HAZARDOUS JUNK. THIS IS NOT A UNIQUE SITUATION. THIS HAPPENS ALL THE TIME. THESE ARE SOME OF THE SATELLITES THAT IN THE LAST DECADE HAVE HAD TO BE THROWN AWAY. $100 BILLION WORTH OF ASSETS ALMOST 200 SATELLITES. IT’S TIME NOTCH TO START RECOVERING SOME OF THAT LOST REVENUE. MY NAME IS DANIEL FAVOR AND I’M THE CO OF ORBIT FAB. WE’RE BUILDING GAS STATIONS IN SPACE. I SPENT 20 YEARS IN THE SPACE INDUSTRY, BUILT A DOZEN SATELLITES SEVERAL SUCCESSFUL PRODUCTS AND I’VE BEEN FRUSTRATED FOR TOO LONG BY HAVING A SINGLE TANK OF GAS IN MY SATELLITES. SO WE’RE SOLVING THIS PROBLEM IN A VERY SIMPLE WAY. WE BUILD THESE SATELLITE GAS TANKS. WE PUT THEM ON ANY AVAILABLE ROCKET WHICH GIVES US THE BEST DEAL ACROSS THE INDUSTRY. WHEN THEY’RE IN ORBIT WE MANAGE THE LOGISTICS AND MECHANICS AND MAKE THE FUEL AVAILABLE TO SATELLITES WHERE THEY NEED IT. THEY COME AND GET THAT FUEL AND THEY REALIZE THAT CAPITAL EXPEND YOUR SAVE EAGDZ OVER 50% WE TAKE HOME GROSS MARGINS OVER 90%. NOW THIS MIGHT SOUND OBVIOUS BUT THERE’S A REASON WHY THIS HASN’T HAPPENED YET. THAT’S BECAUSE THERE’S NO SECURE AND SAFE WAY TO TRANSFER FUEL IN ORBIT. SO WE SET ABOUT SOLVING THAT PROBLEM FIRST. ONCE YOU GET TO ORBIT YOU’RE HALFWAY TO ANYWHERE IN THE SOLAR SYSTEM SO WE LIKE TO THINK THE KEY TO THE SOLAR SYSTEM THIS IS THE GAS CAP. THIS SMALL FUELING PORT FOR SATELLITES ALLOWS FOR SAFE AND RELIABLE TRANSFER OF FUEL BUT NOT QUITE AS SIMPLE AS IT MIGHT SEEM. IN SPACE THERE’S NO GRAVITY TO HELP FUEL DRAIN SO SURFACE TENSION AND OTHER EFFECTS REALLY COMPLICATE HOW THE FLUIDS BEHAVE. WE SOLVE THAT PROBLEM AND SEVERAL OTHER PROBLEMS AS WELL. AND FOR THE FIRST TIME THIS WEEK ON THE TECH STAGE WE’RE GOING TO SHOW HOW IT WORKS. MY CO-FOUNDER JEREMY HERE IS HOLDING THE ACTIVE SIDE OF THIS SYSTEM. YOU CAN SEE IT HAS FOUR FINGERS WHICH CAN CLOSE SECURELY AROUND THE FUELING PORT. NOW WE LOOKED AT ALL OF THE WORK THAT NASA HAD DONE WORKING ON FUELING VALVES IN SPACE AND THEY ASSUME THAT THERE ARE COMPLEX AND EXPENSIVE ROAD BLOCKS THAT WITH BRING THINGS TOGETHER AND ALIGN THEM CAREFULLY BUT WE SEE A FUTURE IN WHICH SATELLITES ARE COMING AND GOING AS PART OF A BUSTLING ECONOMY AND THEREFORE THEY SHOULD BE ABLE TO DOCK AND UNDOCK WITHOUT THE NEED FOR COMPLEX AND EXPENSIVE ROBOTIC SERVICING ASSISTANCE. SO AS YOU CAN SEE THE FOUR FINGERS CLOSE AROUND THE FUELING PORT SECURELY HOLDING THEM TOGETHER TO TRANSFER HIGH PRESSURE PROPELLANTS. WHEN IT’S DONE THE SATELLITE CAN GO OFF INTO ORBIT AND TP MAKING REVENUE. THANK YOU VERY MUCH. >>BACK TO THE PRESENTATION. WE’VE TESTED THESE FUELING PORTS AND WE BUILT THEM SPECIFICALLY IN THIS SIZE AND VOLUME AND LOCH PRICE SO THAT THEY CAN BE A DROP IN REPLACEMENT FOR THE VALVES THAT ARE CURRENTLY USED TO FILL A SATELLITE BEFORE IT IS LAUNCHED. THAT MEANS THAT WE CAN GET VERY RAPID MARKETED OPTION. NOW, WE’VE ALREADY TESTED A LOT OF OUR EQUIPMENT. WHAT YOU CAN SEE HERE ARE TWO TEST BEDS INSIDE THE INTERNATIONAL SPACE STATION THAT WE TESTED EARLIER THIS YEAR AND TRANSFERRED FUEL BETWEEN THE TWO. WE TESTED THE SYSTEMS AND THE TANKS AND ACTUALLY USED WATER IN THIS CASE AND WERE ABLE TO HOOK IT UP TO THE INTERNATIONAL SPACE STATION AND SUPPLY THE SPACE STATION WITH WATER. AS ANOPESSED WE BECAME THE FIRST PRIVATE COMPANY TO RESUPPLY THE SPACE STATION WITH WATER. THAT EQUIPMENT THAT YOU SEE LAUNCHED FULL OF WATER TO THE SPACE STATION AFTER ITS MISSION WE GOT IT BACK HERE ON EARTH THIS IS ACTUALLY THE EXACT HARDWARE THAT WAS IN ORBIT JUST A COUPLE OF MONTHS AGO. NOW THIS IS NOT A SCIENCE EXPERIMENT. WE WORK WITH 20 COMPANIES TO STANDARDIZE THIS FUELING PORT THAT WE ARE LOOKING FOR A STANDARD. WE HAVE TWO CONTRACTS SIGNED TO DELIVER THE FIRST TEN UNITS. WE HAVE CONTRACTS WITH THE AIR FORCE COLLABORATING WITH THE JAPANESE CONGLOMERATE AND WE HAVE A PARTNERSHIP WITH LOCK HEED. THE TEAM BUILDING THIS YOU’VE ALREADY MET MY LAST COMPANY I FOUNDED WAS BUILDING SMALL THRUSTERS THAT MOVED SATELLITEST AROUND IN ORBIT ACQUIRED LAST DECEMBER. JEREMY MY CO-FOUNDER INTERNATIONAL BUSINESS BACKGROUND THE COULD CHAIR OF AN INDUSTRY ASSOCIATION WHICH IS STANDARDIZING SATELLITE SERVICING OPERATIONS. JAMES A BRILLIANT YOUNG ENGINEER IN HIS MID 20S WHO HAS BUILT FIVE PAY LOADS TO THE INTERNATIONAL SPACE STATION AND HAS THREE SATELLITES IN ORBIT. HE PUT THIS HARDWARE THAT PUT IN THE INTERNATIONAL SPACE STATION IN FOUR AND A HALF MONTHS. BROKE SOME SPEED RECORDS. SO WE’RE BUILDING THE INFRASTRUCTURE LAYER THAT’S NEEDED FOR THE FUTURE OF THE SPACE INDUSTRY TO MAKE SURE SATELLITES NEVER NEED TO BE THROWN AWAY AGAIN. IF YOUR COMPANIES ARE BUILDING SATELLITES COME AND TALK TO US ABOUT THE FUTURE. [APPLAUSE] . >>YES ABSOLUTELY. SO THE TANKERS WE LAUNCH WE WORK WITH SO WE GET A GOOD DEAL ON THAT. BUT ACTUALLY WORKING WITH CUSTOMERS AND TALKING TO THEM THAT WE FIRST HAD THAT WE HAVE TO DO THIS SOME OF OUR CUSTOMERS SAID THEY COULD REALIZE MORE THAP A MILLION DOLLARS OF EXTRA REVENUE FOR EVERY KILOGRAM OF PROPELLANT WE CAN GET THEM. WE THINK WE CAN GET TO ORBIT FOR AS LITTLE AS $1,000 PER KILOGRAM. SO THE MAGNITUDE OPPORTUNITY THERE WE DECIDED THERE WAS PROBABLY A BUSINESS IN THE MIDDLE. >>I LIKE THAT YOU ARE WORKING ON A HARD PROBLEM AND SEEMS LIKE YOU MADE CONCRETE PROBLEM. OVER THE LONG RUN IT COULD REDUCE WASTE. DO YOU HAVE A WAY NOW OR IS IT A MATTER OF LAUNCHING ALL NEW SATELLITES THAT HAVE THE PROPER RESEPARATORS. >>THAT’S A REALLY GOOD QUESTION. WE’RE NOT DESIGNING OUR SYSTEMS TO BE BACKWARD COMPATIBLE BUT THERE ARE 30 COMPANIES WORKING ON TOW TRUCKS IN SPACE AND THEY’VE HAD TO DESIGN AROUND REFUELING DOESN’T EXIST WHICH IS LIKE BUYING A TOW TRUCK HAVING TO THROW IT AWAY AND BUY A COMPLETELY NEW TOW TRUCK SO THERE ARE NATURAL CUSTOMERS AND THEY HAVE ALL OF THE COMPLEX ROBOTICS AND ABILITY TO GO AND SERVICE SATELLITES THAT WEREN’T DESIGNED TO BE SERVICED OR UPGRADED SO THROUGH THEM WE’RE ABLE TO ADDRESS THE LEGACY SYSTEMS. AS WE GO FORWARD BECAUSE WE’RE THE WHOLE INDUSTRY WITH A FUELING PORT STANDARD WE’LL BE ABLE TO GO DIRECT TO CUSTOMERS. >>I’M CURSES IF THIS IS SUCH A PAIN POINT FOR SATELLITES INTO SPACE WHY THIS HASN’T BEEN DONE BEFORE. >>THAT’S A REALLY GOOD QUESTION. BECAUSE THERE HASN’T BEEN A STANDARD FUELING PORT. THAT PROBLEM HADN’T BEEN SOLVED BECAUSE THE RESIDENT VIEW AND DOCKING TECHNOLOGIES HAVEN’T BEEN SOLD AND THAT’S WHY THE TIMING IS RIGHT BUT ALSO BECAUSE THE INDUSTRY IS EXTREMELY CONSERVATIVE. BUSINESS MODELS HAVE WORKED WELL BEFORE AND FEELING THAT THOSE BUSINESS MODELS ARE THREATENED BY THE CHANGES IN THE INDUSTRY SO THEY’RE MUCH MORE OPEN TO INNOVATION AND EMBRACING THIS TYPE OF IDEA. SO IT’S BECOME MORE OF A PROBLEM THAT’S AND THE DECEPTIONS HAVE SHIFTED TO NEEDING THIS KIND OF CAPABILITY. >>SO THEY’RE SCARED BY SPACEX AND BLUE ORIGIN? >>PARDON? >>THEY’RE SCARED. >>YEAH THAT IS ONE OF THE EFFECTS AND ALSO MEGA CONSTELLATIONS THOSE TYPES OF THINGS SEVERAL TRENDS THAT THINK A LOT MORE INNOVATIVELY AND LOOK AT SOLUTIONS LIKE THIS. >>ARE YOU STILL BE HOLDEN TO YOUR LAUNCH PARTNER? COULD THEY JACK UP YOUR PRICES BECAUSE YOU ARE DOING WELL AND THEY SEE YOU ARE MAKING GOOD GROSS MARGINS AND HEY WE’RE GOING TO CHARGE YOU MORE? >>WE CONSIDERED THAT AND WE DO SEE THE POTENTIAL OF COMPETITION BUT JUST IN A WAY THAT UNITED DOESN’T SELL FUEL TO DELTA AND THE OTHER COMPANIES. SWISS PORT IS THAT LAYER. SIMILARLY THE COMPANY THAT ARE MAKING THOSE FUELS DON’T SELL DIRECTLY TO THE AIRLINES. THAT INFRASTRUCTURE FOR AIRLINE INDUSTRY WE DON’T SUSPECT THERE WILL BE COMPETITION BECAUSE WE COMBINE FROM ANY OF THE VEHICLES AND LET’S US BENEFIT FROM THE ECONOMIES OF SCALE ON THE SUPPLY SIDE AND SIMILARLY ON THE DEMAND SIDE. >>CAN YOU TALK ABOUT THE LIFE TIME OF A SATELLITE TODAY AND HOW THAT GOES WITH THE AMOUNT OF FUEL THAT’S ON THAT SATELLITE. >>ABSOLUTELY. SO BECAUSE THEY’VE HAD TO DESIGN SATELLITES WITH ALL OF THE FUEL THEY’VE NEEDED THEY’VE PUT UP SATELLITES TRADITIONALLY INTO THE ORBIT WHERE MOST OF THE BIG COMMUNICATION SATELLITES ARE WITH 15 YEARS WORTH OF FUEL SO THAT MEANS MOST OF THE SATELLITE WHEN IT LAUNCHED WAS FUEL. BECAUSE OF THESE NEW CHALLENGES TO THE BUSINESS MODEL THERE’S NO FLEXIBILITY IF YOU LAUNCH WITH 15 YEARS OF FUEL. IF THE MARKET SHIFTS YOU GET STUCK. YOU’RE WITH AN ASSETS THAT’S NO LONGER AS VALUABLE AS YOU THOUGHT SO THEY’RE SEARCHING FOR THAT FLEXIBILITY WHICH IS WHY THEY’RE LOOKING FOR THESE TYPES OF SOLUTIONS. SO THE DRIVE NOW IS TO MAKE SATELLITES THAT HAVE SHORTER LIFE TIMES BUT THEN BUILT THEM WITH THE OPTION TO BE ABLE TO EXTEND THAT LIFE TIME AND YOU CAN’T DO THAT UNLESS YOU’VE GOT A SUPPLY OF FUEL. >>I LOVE THE AUTHORRENT TICES OF THE IDEA TO YOU GUYS FOUNDERS. IT SOUNDS LIKE THOUGH THAT THIS ISN’T A PROBLEM THAT HAS BEEN A HUGE INDUSTRY SECRET FOR A LONG TIME SO ARE THERE OTHER COMPETITIVE OFFERINGS OUT THERE OR POTENTIAL SOLUTIONS THAT WILL MERGE OVER TIME THAT YOU’RE WORRIED ABOUT OR THAT YOU’VE HEARD OF? >>THERE DEFINITELY ARE THOUGHTS THAT HAVE GONE INTO THIS FOR THE LAST FEW DECADES BUT THEY HAVEN’T HAD TO BE HONEST SOMEBODY WHO HAS HAD A DEPTH OF EXPERIENCE IN ENTREPRENEURSHIP AND THE SPACE INDUSTRY SO THEY DON’T HAVE AN MVP. ONE OF THE COMPANIES IS TRYING TO RAISE A SERIES OF $500 MILLION. WE DON’T THINK BUSINESSES SHOULD BE DESIGNED LIKE THAT SO VERY MUCH TRYING TO GET THIS OFF THE GROUND WITH A SMALL AMOUNT OF CAPITAL AND WE BROUGHT DOWN THE CAPITAL REQUIREMENTS FROM HUNDREDS OF MILLIONS OF BILLIONS OF DOLLARS TO ONLY $20 MILLION. >>IT SEEMS THAT THE ASSUMED LOCK OUT IS THE COUPLING NATURE BETWEEN THE VALVE AND THE DISTRIBUTION DEVICE. COULDN’T A COMPETITOR COME IN ONCE YOU ACTUALLY BUILD A MARKET AND YOU HAVE THE MALE OR FEMALE FITTING COULDN’T THEY COME IN AND RETRO FIT THE OTHER SIDE OF THE FITTING IN SOME WAY SHAPE OR FORM AND THEN THE BASIC TAKE ALL OF YOUR LONG TALE OVER TIME? >>YEAH THAT’S A VERY GOOD POINT. THE PATENTS WE HAVE AROUND THE FUELING PORT AND THE AGREEMENT AROUND THE USE AND HOW IT’S DEPLOYED ARE ONE PART OF OUR DEFENSIVE STRATEGY BUT ALSO ONCE WE BUILT OUT THAT INVENTORY THAT’S ANOTHER PART OF THE MOTE THAT WE HAVE. SO THERE’S SEVERAL DIFFERENT LAYERS WE HAVE TO BE ABLE TO DEFENDED THIS BUSINESS. IT’S NOT JUST RELIANT ON THAT FUELING PORT STANDARD. ONCE IT’S IN THE INDUSTRY IT’S VERY HARD THEN FOR SOMEBODY TO TRY AND REPLICATE ALL OF THAT AND BUILD A COMPLETELY NEW ECO SYSTEM TO THEN COMPETE WITH US. >>MY NEXT QUESTION IS SPACE IS VERY BIG SO WHERE DO YOU PUT A FUELING STATION OR HOW DO YOU ACTUALM JUST WORK WITH PEOPLE THAT ARE LAUNCHING THINGS INTO AN ORBIT THAT YOU’RE GOING TO BE OPERATING IT. >>REALLY GOOD QUESTION. THERE ARE A FEW MAIN ORBITS WHERE PEOPLE PUT SATELLITES. WE’LL HAVE A TANK VERY TO THAT. ALSO IN ORBIT THERE ARE DIFFERENT INCLININGSES SO MOST OF THE OBSERVATION SATELLITES ARE 98-DEGREE INCLININGS AND THE COMMUNICATION CONSTELLATIONS 90 OR 70 DEGREES, THE INTERNATIONAL SPACE STATION IS AT 55 DEGREES SO WE’LL RESPOND TO DEMAND AS PEOPLE WANT TO PUT TANKERS IN DIFFERENT LACES BUT THOSE ARE REALLY THE MAIN PLACES WE START. >>YOU ARE MOVING AROUND SEVERAL HUNDRED MILLION DOLLAR SATELLITEST. WHO IS INSURING THIS? >>VERY GOOD QUESTION. AT THE MOMENT THERE’S A ROBUST INDUSTRY AROUND INSURING SATELLITES AND ASSETS AND I MENTIONED BEFORE THE 30 COMPANIES THAT ARE LOOKING TO STAND UP TO SATELLITE SERVICING AND BUILDING THOSE TOW TRUCKS THEY INCLUDE ALL THE WAY DOWN TO NEW START UPS THOSE COMPANIES ARE HAVING TO CONFRONT THOSE ISSUES HEAD ON SO WE CAN RIDE A LITTLE BIT BEHIND THOSE. BUT THEN JEREMY IS ALSO VICE CHAIR OF HOPING TO STANDARDIZE THOSE OPERATIONS AND A LOT OF THAT WORK IS WITH THE INSURANCE AND FINANCIAL INDUSTRIES TO UNDERSTAND THAT RISK AND HOW TO MITIGATE IT BOTH FROM A FINANCIAL AND INSURANCE PERSPECTIVE BUT ALSO A TECHNICAL PERSPECTIVE SO A LOT OF EFFECTS ARE GOING ON IN THAT DIRECTION AND WE ARE IN THE MIDDLE OF THOSE CONVERSATIONS. >>FINAL QUESTION. ALL RIGHT ONE MORE ROUND OF APPLAUSE FOR ORBIT FAB. [APPLAUSE]. >>GOING TO TAKE BACK HIS GAS CAP. ALL RIGHT. WE HAVE ONE MORE COMPANY PRESENTING HERE AT THE BATTLE FIELD FINALS. THAT COMPANY IS OMNIVIZ PRESENTING IS CATHERINE CLAYTON AND LIN CHANG. COME ON OUT. ♪ [ MUSIC ] ♪ [APPLAUSE] . >>>COLLIERA HAS NO BORDERS. AS AN ENGINEERING PHD STUDENT I LEARNED HOW IN HAITI THERE WAS NO ALCOHOLLERRA FOR 1 UNTIL THE 2010 EARTHQUAKE. AFTER THE DISASTER IT SPHERED THROUGH THE COUNTRY CAUSING OUT BREAKS AND DEATHS TO THIS DAY. BUT HAITI IS NOT ALONE. THERE ARE FIVE MILLION CASES OF COLLIERA EVERY YEAR IN 41 COUNTRIES ALL AROUND THE WORLD AND THIS CAUSES OVER $3 BILLION IN TREATMENTS AND LOST PRODUCTIVITY AND HUMAN COST. IT ALSO TAKES SEVEN DAYS TO DETECT IN THE WATER FROM THE TIME SOMEBODY GOES OUT TO THE WATER SOURCE GETS THE SAMPLE, BRINGS IT BACK AND THE LAB PERFORMS ENRICHMENT OF THE SAMPLE, T CBS STREAKING, BROTHER ISOLATION, CHAIN REACTION, AND A SECONDARY CONFIRMATION. THIS PROCESS IS LONG. AND IT TAKES YEARS OF TRAINING TO KNOW HOW TO DO. BUT WHAT’S WORSE IS THAT COMMUNITIES ARE LEFT VULNERABLE TO THE WATER THAT THEY DRINK, THAT THEY BATHE IN AND THAT THEY COOK WITH. SO I TOOK MY PHD RESEARCH AND TECHNOLOGY AND I STARTED WHERE WE PUT THE POUCHER OF THE LAB IN THE PALM OF YOUR HAND. WE DETECT FOR COLLIERA IN UNDER 30 MINUTES IN WATER ANYWHERE IN THE WORLD. WE ARE REVOLUTIONIZING DISEASE DETECTION. AND WE DO THIS WITH AN EASY TO USE PLATFORM. WE HAVE A HAND HELD HARDWARE DEVICE, A DISPOSABLE TEST KIT AND A SMARTPHONE AND THEY WORK SEAMLESSLY TOGETHER TO DETECT IT ACCURATELY AND AFFORDABLY. THE HARDWARE ACTS LIKE THE PORTABLE LABORATORY AND INSIDE WE HAVE HEATING UNITS TO START DNA A.M. APPLICATION AND A SERIES OF LENSES THAT GO DOWN TO THE NAN O PARTICLE LEVEL. WE ALSO HAVE THE TEST KIT WHERE INSIDE WE HAVE AGENTS EMBEDDED TO PERFORM AND WHEN THE TEST KIT AND THE HARDWARE COME TOGETHER WHAT HAPPENS IS WE AMPLIFY THE COLLIERA TOXIN GENE AND IN A.M. FICTION DNA STRANDS GROUCH LONGER MAKING THE SOLUTION AND THAT CHANGE IS EXACTLY WHAT WE ARE MEASURING. WE HAVE TWO PENDING PATENTS ON THIS TECHNOLOGY AND WE ARE MORE SENSITIVE THAN THE STATUS QUO. WE ALSO HAVE THE SMARTPHONE THAT’S ABLE TO TRACK WITH THE PROPRIETARY ALGORITHMS AND SEND ALERT NOTIFICATIONS. MOVE TO PHONE DEMO. IF I’M A FIELDWORKER I TAKE THIS ENTIRE SYSTEM WITH ME OUT TO A WATER SOURCE. I FILL MY TEST KIT WITH A WATER SAMPLE AND I LAUNCH THE APP WHERE I PUT THE TEST KIT INSIDE OF A HEATING UNIT TO INITIATE DNA A.M. FICTION. SO IT’S OCCURRING AND INSIDE THE SOLUTION IS BECOMING MORE IN NATURE AND THIS IS HAPPENING OVER A 28 MINUTE PERIOD. NEXT I MOVE THE TEST KIT TO THE IMAGING REGION TO LOOK AT MY SAMPLE. WHEN I’M IMAGING I TAKE A VIDEO AND THAT’S HOW WE BACK OUT THE CHANGE THAT’S OCCURRING AND WE DO AN ANALYSIS WITH OUR PROPRIETARY ALGORITHM. FROM THAT WE SEE IF THE WATER IS CLEAN OR DIRTY HERE BEING CLEAN AND WE LOOK AT THE DATA TO SEE WHERE AND WHEN IT’S BEEN DETECTED. MOVE TO THE WEB PAGE. WE ALSO HAVE A WEB PORTAL THAT THIS ALL SENDS TO SO NGO CAN SEE WHERE COLLIERA HAS BEEN FOUND AND WHEN AND GATHER THIS DATA AND BRING IN HEALTHCARE SUPPLIES TO THE AREA IN NEED. BACK TO PRESENTATION. WHEN A SOLUTION IS CONTAMINATED IT ALSO LOOKS LIKE THIS BUT I COULDN’T BRING IT TO THE STAGE TODAY. SOLUTIONS THAT MOVE VERY SLOW ARE THEREFORE CONTAMINATED WHEREAS CLEAN SOLUTIONS MOVE VERY FAST BECAUSE THERE IS NO CHANGE. I INSPIRED MY PHD ADVISORS TO JOIN ME AS FOUNDERS OF OMNIVIZ AND EXPERTISE IN BIOTECH ENOLOGY, CONSUMER ELECTRONICS, GLOBAL HEALTH TO COME TOGETHER. RAPID TESTS LIKE–RAPID TESTS ARE VERY, VERY EASY TO USE BUT THEY ARE HIGHLY INACCURATE. CELL CULTURE IS EXPENSIVE TO USE BUT HIGHLY ACCURATE. WE DO HAVE SALES WHERE OUR HARDWARE IS A SINGLE TIME SALE AND OUR DISPOSABLE TEST KIT CREATES OUR RECURRING REVENUE BECAUSE IT IS SINGLE TIME USE. AND TO DATE WE HAVE FIVE LETTERS OF INTENT FROM SOME OF THE BIGGEST PLAYERS IN COLLIERA LIKE DOCTORS WITHOUT BORDERS. BUT WE’RE NOT STOPPING THERE. IT’S A $2 BILLION MARKET FOR WATER DETECTION AND SURVEILLANCE BUT WE SEE EVERYTHING AND BY CHANGING THE CHEMISTRY IN OUR DISPOSABLE TEST KIT AND USING OUR IP WE CAN DETECT FOR MANY DIFFERENT PATH JENS IN MANY DIFFERENT MARKETS. WE ARE MOBILIZING THE LAB. WE ASK TODAY FOR NGOS WATER QUALITY EXPERTS AND RESEARCH HOSPITALS TO VISIT OMNIVIZ TECH.COM BECAUSE WE ARE RAPIDLY DETECTING PATH JENS AND WE ARE SAVING LIVES. THANK YOU. [APPLAUSE]. >>JUDGES?>>HOW ARE YOU GOING TO–WHAT’S YOUR PLAN ON SELLING TO NGOS? >>I’LL HAND THAT TO LIN. >>AS SHE MENTIONED EARLIER WE ALREADY HAVE FIVE LETTERS OF INTENT FROM THE BIGGEST PLAYERS IN THE MARKET. THE GOLD STANDARD. THEY ARE THE WORLD’S FIRST AND LARGEST HOSPITAL AND BEING PARTNERED WITH THEM IS HAVING THE BEST SMELLING SCRATCHY STICKER THAT WE CAN HAVE ON OUR COMPANY. BECAUSE OF THEM WE’VE ALSO BEEN PARTNERED WITH DOCTORS WITHOUT BORDERS WHICH OWN 15% OF THE LANDSCAPE. WE ARE ALSO WORKING WITH EMERGING PATHOGENS INSTITUTE IN HAITI AND MANY MORE LETTERS OF INTENT WE WILL FOLLOW UP WITH. >>TYPICALLY THE TIME SCALE ON BEING ABLE TO GET PAID FROM AN NGO IS QUITE LONG, RIGHT? SO WHAT’S YOUR PATH TO ACTUALLY GETTING YOUR FIRST CHECK? >>SO THE OTHER END OF THINGS IS WE SAW THE WATER TESTING LABORATORIES WHERE WE GET THAT MONEY ON THE FRONT END BUT THE RFPS HAVE A LONGER TURN AROUND TIME BUT THE FACT WE DO HAVE SALES FROM A WATER TESTING LAB IS TO HELP KEEP US SOLID. >>FEELS LIKE A MEANINGFUL BUSINESS YOU ARE BUILDING SO REALLY APPRECIATE THAT. BUILDING ON THE LAST QUESTION WHAT ARE THE UNIT ECONOMICS? HOW MUCH ARE THEY PAYING PER TEST AND WHAT DOES THAT MEAN FOR YOUR? >>THEY’RE SPENDING $100,000 A YEAR CURRENTLY SO WE ALREADY KNOW THAT WE’RE HITTING BELOW WHAT THEIR BUDGETS ALREADY HAVE. MEDIUM SIZED COMPANY LIKE DOCTORS WITHOUT BORDERS HAS ABOUT $500,000 FOR A BUDGET AND UNICEF SPENDS 1 TO $6 MILLION PER COUNTRY PER YEAR. >>I LIKE YOUR TAG LINE THE POWER OF THE LAB IN THE PALM OF YOUR HAND. I THINK THAT MAKES IT REALLY CLEAR. WITH TESTS OFTEN YOU HAVE TO GO THROUGH CLINICAL TRIALS. WHERE DO YOU STAND IN TERMS OF ARE THOSE NECESSARY FOR THIS AREA AND WHAT KINDS OF TRIAL ACCURACY HAVE YOU ALREADY SEEN? >>RIGHT. SO BECAUSE THIS IS WATER TESTING WE DO NOT GO THROUGH THE FDA OR CE MARK APPROVAL PROCESS BUT BECAUSE WE WANT TO BUILD TRUST IN OUR COMMUNITIES WHAT WE DO IS WE WORK WITH I CD DRB THAT LARGEST COLLIERA HOSPITAL IN THE WORLD BECAUSE THEY HOLD THE GOLD STANDARD SO WE TEST WITH THEM TO GET THAT STAMP OF APPROVAL ON EVERYTHING THAT WE DO WITH OUR PRODUCT. UP TO DATE WE HAVE DONE HUNDREDS AND HUNDREDS OF TESTS DOUBLE BLINDED STUDIES TO LOOK AT ACCURACY SENSITIVITY AND SPECIFITY. WE ARE 94% ACCURATE AND 95% SPECIFIC AND 93.1% SENSITIVE. >>ARE YOU TESTING JUST FOR COLLIERA RIGHT NOW OR CAN YOU DETECT EVERYTHING IN THE WATER AND SAY THIS WATER IS CLEAN? BECAUSE THAT’S A MUCH BIGGER PROBLEM. ABOUT 800 MILLION PEOPLE DO NOT HAVE ACCESS TO CLEAN WATER. >>RIGHT, EXACTLY. SO WHAT WE FIRST DO IS WE’RE DOING COLLIERA BECAUSE THAT IS THAT HAS PARTICULAR SYMPTOMS WITH IT AND IT’S VERY CHLORINE RESISTENT AND A MARKET THAT HASN’T BEEN TAPPED BUT WE ARE LOOKING AT MANY OTHER WATER DISEASES. IN THE LABORATORY SPACE WE’VE LOOKED AT E. COLI THE O157H7 STRAIN AND TYPHOID SO WE WANT TO HAVE THAT SPECIFIC RESULT BECAUSE THAT ALSO CHANGES THE SPECIFIC TREATMENT OF WATER IN PARTICULAR CASES LIKE COLLIERA BEING CHLORINE RESISTENT BUT WE ARE GROUCHING DEFINITELY INTO THAT REGION AND GOING INTO HUMAN HEALTH AFTER. >>HOW DID YOU SIZE THE MARKET TO 2 BILLION. >>WE LOOKED THROUGH A BUNCH OF UNICEF DOCUMENTS AS WELL AS THE DOVE PROJECT ET CETERA AND WE’VE DONE A LOT OF PRIMARY MARKET RESEARCH. WE’VE GONE OUT TO THE FIELD, HAITI, KENYA, BANGLADESH AND TALKED TO WELL OVER 200 PEOPLE FACE-TO-FACE TO START SIZING THIS MARKET AND THE NEED. >>IS THAT 2 BILLION IN DISPLACEMENT OF EXISTING SERVICES THAT ARE BEING PROVIDED FOR WATER TESTING OR IS IT GROWING MARKET BASED ON THE ABILITY TO DISTRIBUTE THIS BROADLY. >>THE MARKET ITSELF IS THE $2 BILLION CURRENTLY BEING USED FOR WATER DETECTION AND SURVEILLANCE OF COLORADO ALONE. >>IS THERE A DOMINANT PLAYER IN THE MARKET TODAY? >>RIGHT NOW THAT LABORATORY TESTING THAT SEVEN DAY TURN AROUND TIME IN A LOT OF COUNTRIES MAYBE ONLY HAVE TWO WATER TESTING FACILITIES SO A LOT OF PEOPLE ARE NOT EVEN GETTING SERVED WHERE A WATER NGO COULD SERVE THOSE PEOPLE BECAUSE THEY CAN GO OUT INTO THE FIELD. OUR MECHANISM TAKES 47 MINUTES OF TRAINING TIME BEGINNING TO END AND WE HAVE DONE THIS STUDY VERY THOROUGHLY IN BANGLADESH. >>HOW MUCH OF THAT IS SERVICES AS OPPOSED TO HARDWARE AND EQUIPMENT? THAT PROBABLY TAKES UP TO 10% OF THE COST. THE DISPOSABLES AND THE TESTS. >>I GOT TO MENTION DISTRIBUTION IS RELATIVELY DIFFICULT FOR THIS PRODUCT EVEN IF YOU GET IT TO THE NGO THEN GETTING IT TO THE SITE AND INTO THAT MARKET ARE REALLY DIFFICULT. HOW ARE YOU OVER COMING THAT? >>YEAH, SURE. SO WHAT WE DO IS THAT’S WHY OUR PARTNERS ARE SO IMPORTANT TO US. DOCTORS WITHOUT BORDERS HAS A DISTRIBUTION NETWORK. THEY ARE THE EXPERTS IN THAT THEY KNOW HOW TO GET THAT OUT TO THE FIELD. WE RESPOND AND WE’RE THE ONE THAT GETS A MILLION TEST KITS OR HARDWARE DEVICES. THEY GO THROUGH TO GET TO THE RIGHT PLAYER, THE RIGHT FIELDWORKER, THE RIGHT SCIENTIST, THE RIGHT DOCTOR SO THAT IS WHERE OUR PARTNERS AND CUSTOMERS ARE INCREDIBLY IMPORTANT. >>YOU TALKED ABOUT REPORTING THE IP TO BLOOD. HOW DIFFICULT IS THAT? >>SO FAR H.I.V. AND MALARIA IN BLOOD AND HAVE SEEN GREAT LOW LEVELS OF DETECTION AND NOT SEEING ISSUES. THERE WILL BE MORE SAMPLE PROCESSING IN THE CHIP ITSELF BUT WE KNOW IF WE NEED TO LOOK AT THE WHITE BLOOD CELL SIDE, THE PLASMA SIDE AND THE RED BLOOD CELL SIDE BUT WE HAVE A PAPER COMING OUT IN THE NEXT FEW MONTHS ON BLOOD TESTING IN THE SYSTEM WITH MALARIA. >>EXCITING. GREAT. >>OTHER QUESTIONS? >>DO YOU HAVE UNITS CURRENTLY DEPLOYED? >>WE’RE ACTUALLY WRAPPING UP OUR LAST PILOT STUDY IN BANGLADESH AT THE END OF THIS MONTH. >>AND HOW IS EUTIZEATION ON THE EXISTING. >>WHAT DOES UTILITYATION LOOK LIKE? >>YEAH SO THE TEASES THEMSELVES ARE DISPOSABLE SO THEY ARE A ONE TIME USE. DEPENDING ON THE SIZE OF OUR PARTNER WE’RE EXPECTING LIKE A SMALL PARTNER WILL DO, YOU KNOW, A LOW END THOUSANDS OF TESTS A MONTH AND THEN IT SCALES UP AND THAT REALLY CHANGES DEPENDING ON HOW LARGE THE COUNTRY IS AND THE COMPLEXITY OF GETTING TO THOSE LOCATIONS. >>FINAL QUESTION. ALL RIGHT, GIVE IT UP FOR OMNIVIZ. [APPLAUSE]. >>THAT CONCLUDES THE FINALS OF THE START UP BATTLE FIELD. THE JUDGES ARE GOING TO FOLLOW ME BACK STAGE AND CHOOSE A WINNER. BEFORE THEY GO LET’S HEAR IT ONE MORE TIME FOR OUR AWESOME JUDGES. [APPLAUSE] . >>WHAT TECHNOLOGY DO YOU THINK WILL HELP US BEST DEAL WITH NATURAL DISASTERS? GO TO THE IVM BOOTH NUMBER BF1 TO PICK YOUR FAVORITE FROM THE CALL FOR CODE FINALIST. OVER 5,000 PEOPLE HAVE ALREADY VOTED. ♪ [ MUSIC ] ♪♪>>WHY DID YOU COME TO THIS WORK SHOP? TO LEARN. LEARNING SOMETHING IT HAPPENS VERY IN THE PAST AND DIFFERENT RESULTS. >>I WANT TO BE WHERE WE ASK QUESTIONS LIKE WHY AND THE BIG QUESTION I ASK IS WHAT IF. YOU KNOW IT’S A DIFFERENT WAY OF THINKING AT STANFORD THAN IT IS AT ANY OTHER UNIVERSITY IN THE WORLD. >>I REALIZED I WAS GETTING PALE SO I SAID YOU KNOW WHAT IT’S TIME FOR ME TO MOVE ON AND LOOK FOR GREATER THINGS. AND HAVE MORE. >>AT LOCK HEED MARTIN WE’RE ON A MISSION. YOUR MISSION. WHEN MILLIONS OF PEOPLE ARE COUNTING ON YOU, YOU CAN COUNT ON US. TO BUILD THE IMPOSSIBLE, TO SOLVE THE PROBLEM WITH SPEED AND RELIABILITY. EVERY MISSION IS EXPEDITION OF GREATEST IMPORTANCE TO YOU AND TO US. >>TRADITIONAL HEARING IS BEHIND YOU SIT HERE AND I’M ACTUALLY WEARING THEM RIGHT NOW. SO AS OPPOSED TO SELLING CLINICS YOU GO AND ONLINE THERE’S NOT A DISTRIBUTION MEANING THAT WE CAN ACTUALLY OFFER PRODUCTS AT A LOWER PRICE AND ALSO FROM PRODUCT WEARING TO REHABILITATING YOUR HEARING AND SO ON. SO TRADITIONALLY YOU WOULD NEED TO BOOK AN APPOINTMENT, WAIT A COUPLE OF WEEKS. YOU COULD GET IN. YOU WOULD HAVE YOUR HEARING ASSESSED AND THEN YOU WOULD SORT OF GET INTO THE COUNSELING WHAT KIND OF SOLUTIONS EXIST, HOW YOU GET IT. YOU DON’T NEED A PRESCRIPTION PER SAY. YOU’VE BEEN WITH A RANGE OF OPTIONS AND A STRONG RECOMMENDATION FROM THE PROFESSIONAL AND OFFER TO BUY IT. THE CHALLENGE IN AMERICA IS IT’S AN INVESTMENT. THERE’S NO REIMBURSEMENT FOR HEARING AIDS. THE AVERAGE PRICE POINT IN THE MARKET IS $4,700 FOR A PAIR. THAT’S THE TRADITIONAL PROCESS. THAT’S THE PERFECT SOLUTION OUT HERE FOR YOU. YOU CAN ACTUALLY IMPROVE YOUR HEARING. YOU DON’T HAVE TO GO THROUGH THE HASSLES OF SETTING APPOINTMENTS, BEING TESTED. YOU CAN ACTUALLY TRANSCEND ONLINE AND YOU WILL GET YOUR HEARING AIDS AND LITERALLY TRY IT ON. TYPICALLY TWO TO THREE DAYS AFTER RECEIPT OF THE PRODUCT FOR A WELCOME CALL TO MAKE SURE WE CAN ADDRESS ALL OF THE QUESTIONS AM I PUTTING IT IN THE RIGHT WAY, HOW DO I CHANGE MY PROGRAMS, ANY KIND OF ISSUE THAT MIGHT ARISE WE WANT TO MAKE SURE WE TACKLE THEM HEAD ON UP FRONT. OUR VERY FIRST PRODUCT NOW ALSO ARE ALL FDA APPROVED. SO THERE YOU GO. THE HEARING AID LOOKS LIKE THIS AND YOU SEE WHAT I WAS TALKING ABOUT EARLIER IN TERMS OF THE GENESIS OF THE DESIGN WHICH IS REALLY THIS FLEXY FIBER TIP. THE MEDICAL GRADE SILICONE AND YOU CAN SEE THAT THE MINIATURIZEATION IS REALLY ABOUT TAKING THE ELECTRONICS AND ESSENTIALLY SHRINK WRAPPING IT WITH A SMALL PLASTIC SHELL. AND MOST IMPORTANTLY WHEN INSERTED IN YOUR EAR IT ESSENTIALLY COMPLETELY DISPEERS OUR LATEST PRODUCT OFFERING WILL NOTE A DESIGN CHANGE. SO A LOT CLEANER LOOK IN TERMS OF THE CHARTER DESIGN. THE CHARGER POCKETS TAKING FEEDBACK FROM OUR END USERS. WE REDESIGN THE POCKETS SO IT’S VIRTUALLY IMPOSSIBLE TO GET THEM INCORRECTLY AND THE HEARING AID ITSELF HAS GONE THROUGH QUITE A FEW CHANGES. WHAT YOU NOTICE IMMEDIATELY IS A MUCH MORE ORGANIC SMALLER FORM FACTOR SO MOVE THE MICROPHONE TO THE BACK OF THE HEARING AID AND THEN WE HAVE STAINLESS STEEL CONTACTS THAT ARE FLUSH WITH THE SURFACE IN CONTRAST TO THE FIRST GENERATION WHERE THE GOLD CONTACTS ARE RECESSED A LITTLE BIT. RIGHT? SO THE DESIGN INTENT HERE WAS REALLY THREE FOLD. IMPROVING RETENTION IN THE EAR CANAL, IMPROVING COMFORT AND IMPROVING THE ARKOSESICS OF PHYSICAL PERFORMANCE. SO BY MOVING TO A PALM DESIGN RATHER THAN THE FLEXY FIBER DESIGN WE WERE ABLE TO ACHIEVE ALL THREE OF THOSE IN ONE DESIGN. SO YOU GET A LITTLE BIT MORE GAIN IN THE OVERALL SYSTEM SO WE CAN FIT MORE PEOPLE WITH THIS DEVICE. AND IT IN FACT IS MORE COMFORTABLE AND BETTER RETENTION. WE OFFER PRODUCTS ANYWHERE FROM 1650 TO 2750 SO STILL AN INVESTMENT. IT’S A LOWER END OF THE PRICE OF THE MARKET BUT IT GIVES PEOPLE THAT YOU SPHOCH OPPORTUNITY TO REALLY TRY HEARING. WHAT WE REALLY WANTED TO DO IS YOU CAN ALMOST CALL IT HOW DO WE MAKE IT ACCESSIBLE AND GET AWAY FROM THE MEDICAL ENVIRONMENT. THIS IS SOMETHING ABOUT IMPROVING YOU AND YOU TAKING ACTION.>>>LADIES AND GENTLEMEN, PLEASE WELCOME BACK TECH CRUNCH MANAGING EDITOR AND DISRUPT MC JORDAN CROOK. >>WHAT’S UP, SQUAD? YEAH. THANK YOU. SIFN OR SEVEN PEOPLE CLAPPING. PROGRESS, APPRECIATE IT. I SPHOCH YOU GUYS ARE ANXIOUS TO HEAR WHO THE WINNER OF THE BATTLE FIELD FINALS BUT OUR JUDGES ARE BUSY DELIBERATING AND WE ARE ABOUT TO HEAR ABOUT FROM SOME OF THE MOST EXCITING NAMES IN SMARTPHONES. SO WITH THAT I’D LIKE TO WELCOME OUR NEXT GUEST. PLEASE WELCOME TO THE STAGE FROM ONE PLUS THE CO-FOUNDER CARL PAY AND YOUR MODERATOR BRIAN HEATER. WARM WELCOME, PLEASE. ♪ [ MUSIC ] ♪>>WELCOME. >>THANK YOU FOR HAVING ME. >>SO I WANTED TO START OFF BY GIVING A LITTLE BIT OF A BROADER INDUSTRY CONTEXT. 2019 IS ON TRACK TO BE THE THIRD STRAIGHT YEAR OF GLOBAL SMARTPHONE DECLINE AS I’M SURE YOU’RE WELL AWARE. HOWEVER IN STARK CONTRAST TO THAT BETWEEN THE YEARS OF THESE ARE THE LATEST NUMBERS I’VE SEEN. I’M SURE YOU’RE ARE FAR MORE UP TO DATE BETWEEN 2017 AND 2018 EXPERIENCING A 209% GROWTH. WHAT ARE YOU DOING RIGHT THAT OTHER PEOPLE AREN’T? >>I THINK WE ARE REALLY JUST FOCUSED ON THE PRODUCT. WE HAVE A PRODUCT THAT OUR CONSUMERS LOVE AND ACTUALLY WE DON’T REALLY LOOK AT MARKET SHARE NUMBERS. OUR PR TEAM TOLD ME TO TELL EVERYBODY THAT WE’VE GROWN 152% YEAR ON YEAR Q2 TO Q2 BUT THAT’S SOMETHING THAT WE REALLY LOOK AT BECAUSE IT’S NOT SOMETHING THAT WE CAN REALLY CONTROL. WE REALLY BELIEVE IN PUTTING ALL OF OUR EFFORT INTO CREATING THE BEST POSSIBLE PRODUCT AND IF THE PRODUCT IS GOOD ENOUGH, I THINK IT’S JUST A MATTER OF TIME FOR GROWTH TO HAPPEN. >>IT SOUNDS LIKE WHAT YOU ARE GETTING AT IS YOU ARE COMPETING AGAINST YOURSELF IN THAT RESPECT. THE POINT IS TO CONTINUE TO GROW YEAR-OVER-YEAR. HOWEVER I’M GOING TO ASSUME YOU MUST BE PRETTY INTUNE WITH WHAT IS HAPPENING IN THE INDUSTRY. YOU MUST SEE THE FACT THAT PEOPLE GENERALLY ARE BUYING FEWER SMARTPHONES THAN THEY WERE A YEAR OR TWO AGO AND TRYING TO FIGURE OUT HOW TO CONTRAST THAT. >>TO BE HONEST WE HAVEN’T HAD MANY CONVERSATIONS INTERNALLY ABOUT THIS. IT’S MAINLY BEEN VERY, VERY INWARD LOOKING AND IN A WAY THERE’S NOT REALLY MUCH WE CAN DO ABOUT MARKET DYNAMICS. THE WORLD IS CHANGING AND IF YOU CAN’T REALLY DO ANYTHING ABOUT IT, THEN WHY WOULD YOU SPEND TIME THINKING ABOUT IT. >>SURE BUT HOW DO YOU CONVINCE CONSUMERS AGAIN THAT AREN’T BUYING SMARTPHONES AT THE RATES THAT THEY ONCE WERE THAT PERHAPS THEY NEED TO CONTINUE TO UPGRADE THE DEVICES EVERY ONE OR TWO YEARS THAT THEY NEED TO ACTUALLY GO OUT AND SPEND MONEY ON A NEW DEVICE. >>I THINK AT THIS POINT WE’RE- -ALTHOUGH WE’RE NUMBER FIVE IN THE WORLD NOW IN TERMS OF THE PREMIUM FLAGSHIP MARKET WE’RE STILL QUITE A SMALL PLAYER AND THAT’S WHY WE’RE ABLE TO SUSTAIN OUR GROWTH. >>OKAY. SO DO YOU FEEL LIKE THERE’S BEEN A PRETTY CONTROLLED BURN IN THE WAY THAT THE COMPANY’S GROWING? ARE YOU CONSCIOUS OF THAT? IS THERE A DOWN SIDE IN GROWING TOO QUICKLY? >>WE ALWAYS BELIEVE IN SUSTAINABLE GROWTH AND WE ALWAYS BELIEVE THAT WE’RE ALWAYS TRYING TO BE PROFITABLE. WE’VE GOT TO SURVIVE. THE HARDWARE INDUSTRY IS DIFFERENT FROM SOFTWARE. WHEN YOU HAVE A SOFTWARE PRODUCT WITH NETWORK EFFECTS YOU KIND OF CAN JUSTIFY OVER SPENDING TO GET MORE USERS TO BUILD THAT NETWORK EFFECT BUT IN HARDWARE IF YOU OVER SPEND YOU’RE NOT GUARANTEED TO BE AROUND. IF YOU LOOK AT THE HARDWARE LANDSCAPE MOST HARDWARE COMPANIES HAVE DISAPPEARED NOT BECAUSE OF THE FACT THAT THEIR COMPETITORS ARE REALLY STRONG BUT RATHER BECAUSE THEY HAVE OVER INVESTED IN INVENTORY AND HAVE BROKE THEIR CASH FLOW. >>HOW MANY ONE PLUS SEVENS DID YOU SELL? >>IT’S IN THE MILLIONS. >>IN THE MILLIONS? AND HOW DOES THAT COMPARE TO THE SIX OR THE SIX T FOR EXAMPLE. >>SO EVERY NEW PRODUCT WE HAVE WE SELL A LITTLE BIT MORE THAN BEFORE. AND IF WE THINK WE HAVE A DEMAND OF SAY 100 UNITS WE WOULD RATHER MAKE 90 UNITS JUST TO BE TOTALLY SURE THAT WE CAN SELL EVERYTHING WE CREATE WITHOUT NOADING TO OVERLY DISCOUNT AND WITH US LOSING MONEY. SO FOR US SLOW AND SUSTAINABLE GROWTH IS MUCH MORE IMPORTANT THAN MAXIMIZING EVERY OPPORTUNITY THAT WE HAVE. >>DID THAT CHANGE AT ALL A PHONE TO >>IT’S AN INVITE ONLY SYSTEM AND IT WAS NOT INTENDED TO BE BUT IT BECAME LIKE A GROSS HACK ALL IN ALL WE DO CLOSE TO $1 BILLION IN REVENUE JUST IN ONLINE PEER TO PEER MODELS SO WE GOT AHEAD OF OURSELVES IN TERMS OF OUR PRIDE AND WE THOUGHT WE WERE REALLY SMART WHICH CAUSED US TO ALMOST FAIL IN OUR SECOND YEAR. EVER SINCE THEN WE HAVE REVERTED BACK TO THIS SLOW AND STEADY GROWTH MODEL.>>WHAT HAPPENS, WHY DID THAT CAUSE YOU TO ALMOST FAIL IN THE FOLLOWING YOUR RUSSIAN >>WE STOPPED FOCUSING ON A PRODUCT I STILL REMEMBER IN 2015 WE GOT SO MUCH GOOD PRESS IN 2014 AND WE DID NOT WANT TO LET THE PRESS DOWN. SO I REMEMBER ONCE WHEN WE WERE ORDERING UNITS, HOW MUCH ARE GOING TO PRODUCE? WE ARE BASING IT ON WHAT WOULD BE A GOOD STORY TO TELL IN TERMS OF GROWTH COMPARED TO THE PREVIOUS YEAR AND IT WAS NOT BASED ON WHAT THE CONSUMERS FELT ABOUT THE PRODUCT SO THAT’S HOW ARROGANT WE BECAME IN 2015.>>YOU FELT IT WAS NOT NECESSARILY UP TO THE STANDARDS THAT IT SHOULD HAVE BEEN? >>2015 IS THE ONLY YEAR IN WHICH WE HAVE NOT MADE MONEY.>> THE NUMBERS SPEAK FOR THEMSELVES. EARLY ON THE COMMUNITY WAS THE THING FOR YOU GUYS THAT’S HOW YOU ARE ABLE TO GROW AS QUICKLY AS YOU WERE AND IT SEEMS CRAZY TO TALK ABOUT THESE LARGE-SCALE HARDWARE DEVICES BUT IT REALLY WAS WORD-OF-MOUTH AND THE FACT THAT YOU WERE A SMALL NEW COMPANY AND ABLE TO TALK TO PEOPLE DIRECTLY, GRANTED IT’S ONLY BEEN SIX YEARS BUT DO YOU FEEL THAT YOU HAVE LOST A LITTLE BIT OF TOUCH WITH THE COMMUNITY?>>TODAY PRODUCTS ARE BUILT TOGETHER WITH OUR COMMUNITY SO IN THE VERY BEGINNING PEOPLE SHARING THE PRODUCT WITH EACH OTHER BUT AS WE GREW WE STARTED A THREE- PRONGED SOFTWARE STRATEGY SO WE HAVE A CLOSED BETA PROGRAM, OPEN BETA PROGRAM AND A MASS PRODUCTION BUILD AND A VERY SMALL GROUP OF CORE USERS WHO ARE ALWAYS GIVING US FEEDBACK ON THE CLOSED BETA PROGRAM SO THAT WHEN CONSUMERS ARE ENROLLED IN THE LARGER OPEN BETA PROGRAM IT IS ALREADY EMBEDDED AND THEN WHEN MASS- MARKET CONSUMERS SEE IT IT HAS HAD TWO LAYERS OF TESTING SO THIS PROGRAM HAS STOPPED US FROM RELEASING THINGS THAT COULD HAVE GONE NOT THAT GREAT.>>LIKE WHAT FOR EXAMPLE?>>WE HAD THIS, WE WANTED TO INFUSE MORE HUMANITY INTO THE PRODUCT BECAUSE THE SMART PHONE IS VERY COLD>>WHAT DOES THAT MEAN?>>WE WANTED TO DO SOMETHING FUN WAS THE BIG SCREEN ANIMATION AND LUCKILY OUR COMMUNITY STOPS THAT.>>I HAVE TO ASK WHAT WAS THAT? WAS IT JUST WRONG? >>IT WAS BASICALLY SOMEBODY DRAWING OUR LOGO BY HAND AND YOU COULD SEE SOMEBODY’S HAND AND IT JUST FELT REALLY OFF. SO WE KILLED IT.>>YOU THINK IN SPITE OF THE GROWING AT THE RATE THAT YOU HAVE BEEN YOU HAVE BEEN ABLE TO MAINTAIN THE RELATIONSHIP WITH THE COMMUNITY THAT SHE WOULD LIKE? >>I FEEL LIKE THE RELATIONSHIP HAS NOT EVOLVED THAT IS STILL WHAT IT WAS TWO YEARS AGO SO GOING FORWARD IF YOU LOOK AT THE OVERALL SMARTPHONE MARKET WERE NOT GOING TO HAVE THE RESOURCES TO DO MARKETING ON TV COMPARED TO THE LARGER PLAYERS SO WHEN YOU TO KEEP INNOVATING IN THE WAY THAT WE ENGAGE WITH THE CONSUMER AND THAT I FEEL HAS BEEN STAGNANT OVER THE PAST TWO YEARS WHERE WE HAVE BEEN MORE FOCUSED ON BUSINESS AND OPERATIONS AND WE STARTED TO WORK WITH CARRIERS, WE HAVE LAUNCHED WITH T MOBILE HERE IN THE U.S. WHICH IS WHY WE HAVE GROWN QUICKLY. >>WHY NOT LAUNCHED WITH A CARRIER INITIALLY? WE ARE TALKING ABOUT THE U.S. MARKET THAT’S KIND OF THE ONLY WAY TO HAVE A LARGE SUCCESS HERE IS TO WORK DIRECTLY WITH THE CARRIERS.>>WE WANTED TO TRY OUT OUR e-COMMERCE IDEA WHICH GOT US TO A CERTAIN LEVEL OF GROWTH AND TO BE HONEST IN YOUR ONE WE WERE NOBODY SO IF WE WERE TO APPROACH THE CARRIERS WE WOULD NOT GET A RESPONSE, WE WERE JOKING ABOUT THIS WE SAID WHEN THEY WERE BIG ENOUGH ARE GOING TO LAUNCH WITH T-MOBILE, AND IT HAPPENS.>> IT’S INTERESTING SO YOU FELT LIKE IT WAS A SPIRIT WITH WHAT YOU ARE TRYING TO DO? >>A LOT OF MESSAGES AND HOW THEY WERE APPROACHING THE MARKET WAS SIMILAR TO OUR IDEAS WE SAW PROBLEMS WITH THE STATUS QUOTE AND WANTED TO DO BETTER. >>WAS PARTNERING WITH T-MOBILE ALSO PART OF THE CONTROLLED IN THERE RIGHT NOW? THEY ARE A PRETTY DISTANT THIRD IT COMES TO AT&T AND VERIZON SO THEY ARE KIND OF THE RIGHT SIZE FOR A NEED TO BE RIGHT NOW? >>IT’S BEEN A GOOD PARTNERSHIP WE REALLY ALIGN ON THE VALUES, WHEN WE LAUNCHED ALMOST ONE YEAR AGO WE HAD A BIG EVENT AT TIME SQUARE AND THE MEDIA WERE WRITING ABOUT GO ON LONGER THAN ANYTHING THEY HAVE SEEN IN THE PAST COUPLE YEARS. >>HAS THE U.S. MARKET BEEN DIFFICULT TO CRACK, THAT IT’S MUCH THEM MORE DIFFICULT THAN OTHERS? >>IT’S A MATTER OF PATIENTS BECAUSE IT’S A DEVELOPED MARKET SO IF YOU LOOK AT INDIA FOR INSTANCE NOW 5 1/2 YEARS AND WE ARE NUMBER ONE IN TERMS OF MARKET SHARE IN THE PREMIUM MARKET SO WE ARE BIGGER THAN WHATEVER OTHER BRAND YOU CAN THINK OF AND THAT SPACE AND THAT’S BECAUSE INDIAN CONSUMERS ARE VERY YOUNG AND A LOT OF PEOPLE ARE SWITCHING FROM A FEATURE PHONE TO A SMART PHONE AND YOU HAVE e-COMMERCE COMING OUT OF NOWHERE INVESTING A LOT OF MONEY TO WHEN THE INDIAN e- COMMERCE SO YOU HAD ALL THESE FACTORS CREATING A CHANGE IN THE MARKET WHEREAS HERE THE CARRIERS ARE VERY STRONG, 90% OF THE PHONES ARE SOLD BY CARRIERS AND PEOPLE ALREADY HAVE THIS HABIT OF I DON’T BUY A PHONE AS A NEW PHONE I BUY IT WHEN MY CONTRACT ENDS SO I THINK AS LONG AS YOU HAVE A GOOD PRODUCT AND OFFER YOUR CUSTOMERS GOOD SERVICE, SOONER OR LATER PEOPLE ARE GOING TO GET IT AND SOME GET IT FASTER THAN OTHERS.>>I DON’T KNOW IF YOU WOULD AGREE BUT FROM WHAT I SAID PRICING IS AN IMPORTANT PART OF THE SUCCESS, PART OF THE REASON WHY PEOPLE ARE BUYING FEWER SMARTPHONES YOU WERE ABLE TO KEEP THESE AT $700 FOR THESE PREMIUM DEVICES. IS THAT PRICE POINT A HUGE KEY TO YOUR SUCCESS, IS THAT SOMETHING YOU’RE TAKING INTO ACCOUNT WHEN YOU ARE DEVELOPING A DEVICE? >>ONE OF THE PROBLEMS WE SAW ON THE MARKET WAS THAT PHONES WERE TOO EXPENSIVE, THE BUSINESS MODEL WAS NOT REALLY SET UP IN THE CONSUMERS FAVOR. THERE WERE TOO MANY IN BETWEEN SO THAT’S WHY WHEN WE STARTED WE WANTED TO CREATE THIS AWESOME PRODUCT AND SELL IT THROUGH e-COMMERCE SO CONSUMERS GET A MORE REASONABLE PRICE. NOW THAT WE STARTED WORKING WITH CARRIERS SOME PEOPLE ARE ASKING US ARE YOU STILL BEING TRUE TO THAT ORIGINAL IDEA AND THE ANSWER IS YES BECAUSE CARRIERS DON’T REALLY MAKE MONEY ON SELLING HARDWARE, THEY HAVE A BUSINESS MODEL THAT LIES IN SELLING THEIR SUBSCRIPTIONS AND PLANS SO WE CAN STILL BRING OUR PRODUCT TO CONSUMERS AND ON THE OTHER HAND IF YOU WORK WITH RICK AND MORTAR STORES THAT’S A DIFFERENT STORY AND WHY WE HAVE NOT REALLY EXPANDED OVER THERE.>>THEY WERE BILLED TO PRODUCE VERY GOOD HANDSETS ARE REALLY GOOD PRICES.>>I THINK THE SMART PHONE INDUSTRY IS SO MATURE NOW THAT EVERYBODY HAS THE SAME ACCESS TO THE SAME STUFF THAT IT’S ALL A MATTER OF WHAT YOUR FOCUS IS, OUR FOCUS HAS ALWAYS BEEN IN CREATING A PREMIUM EXPERIENCE SO WE HAVE NEVER CREATED A PRODUCT BELOW $400 OR $350 SO IT’S A MARKET THAT WE CHOSE NOT TO ENGAGE IN BECAUSE OUR EXPERTISE LIES IN CREATING A REALLY GOOD USER EXPERIENCE AND GETTING ALL THE DETAILS RIGHT. ONE EXAMPLE IS THIS IS THE ONE +7 T IS GOING ON SALE ON 18 OCTOBER YOU CANNOT REALLY SEE IT BUT THIS RING OUTSIDE OF THE CAMERA HAS THIS CURVATURE THAT YOU CAN SEE FROM THE SIDE AND WE CREATED A MAN-MADE DIAMOND DRILL IN ORDER TO CREATE THIS SURFACE CURVATURE THAT WE NEEDED AND IT’S TYPICALLY SOMETHING THAT REMINDS YOU OF HOW JEWELRY IS MADE SO WE PUT A LOT OF EMPHASIS ON THE SMALLEST OF DETAILS BOTH WHEN IT COMES TO THE HARDWARE AND SOFTWARE SO THE PRICE IS NOT OUR MAIN CONCERN BUT IF WE WANTED TO WEAKEN I COULD SEE PRODUCT IT’S JUST NOT OUR STRATEGY. >>THE PART OF YOUR ABILITY TO KEEP THE PRICE IN CHECK WAS OFTENTIMES NOT NECESSARILY BEING THE FIRST INTRODUCING A FEATURE TO THE PRODUCT, WE WOULD SEE THEM COME OUT ON OTHER DEVICES AND HE WOULD WAIT A YEAR AND BECAUSE OF THAT YOU’RE ABLE TO KEEP THE PRICE LOW BUT IT DOES SEEM LIKE THE PHILOSOPHY HAS PERHAPS SHIFTED IN THE LAST COUPLE YEARS. YOU ARE ONE OF THE FIRST TO MARKET THE END DISPLAY FINGERPRINT READER ALSO PUSHING 5G PRETTY HEAVILY IS THAT A CHANGE IN THE WAY THE COMPANIES APPROACHING FEATURES? >>IT WAS NEVER ABOUT COST- SAVING, WE DID NOT WANT TO BE THE FIRST TO IMPLEMENT SOME TECHNOLOGIES BECAUSE THE USER EXPERIENCE JUST WAS NOT THERE, WHY THE FIRST JUST FOR THE SAKE OF BEING FIRST, FOR US IT’S MUCH MORE IMPORTANT TO BE BETTER. 5G IS A DIFFERENT STORY BECAUSE IF YOU ARE A CONSUMER THERE IS NO REAL KILLER APP FOR 5G YET AND THE SAME THING HAPPENED WHEN 4G CAME OUT IT TOOK TWO OR THREE YEARS BEFORE THEY FOUND WAYS TO LEVERAGE BANDWIDTH AND SPEED SO WERE GOING TO SEE THE SAME THING HAPPEN WITH 5G. THE REASON WHY IT’S SO IMPORTANT TO US IS BECAUSE OF OUR USERS, WHERE PROBABLY THE BRAND WITH THE MOST ENTHUSIASTIC USERS, IF YOU WALK AROUND THE SOFTWARE DEVELOPMENT DEPARTMENTS HERE YOU WILL SEE A VERY HIGH INTERNAL MARKETSHARE SO WE KNOW THAT THESE PEOPLE WILL INVENT THE APPLICATIONS FOR 5G WE JUST WANTED TO BE FIRST TO BE ABLE TO EMPOWER THEM. EARLIER THIS YEAR WE ROLLED OUT THE FIRST 5G DEVICE IN THE UK, WE WANTED TO BE THE FIRST TO EMPOWER THE COMMUNITY.>>YOU WOULD AGREE THAT OWNING A 5G HANDSET DOES NOT MAKE SENSE FOR A VAST MAJORITY OF THE CONSUMERS. >>UNLESS YOU HAVE A LONG TIME FUTURE IN THE COMPANY NEED TO BE FUTURE PROOF. >>IS NOT YOUR MAINSTREAM FLAGSHIP YOU ARE ABLE TO REDUCE THIS DEVICE AT THE DEVELOPER COMMUNITY? >>WE WANT TO BE FIRST BECAUSE THIS SEGMENT OF THE MARKET IS SO IMPORTANT TO US. >>HOW IMPORTANT IS IT TO BE FIRST ON THE STANDPOINT TO BEING ABLE TO MARKET WITH THIS FEATURE?>>I WAS NEVER A DISCUSSION POINT. >>YTV AND WHY NOW? >>WE DISLODGED THE TV, INTO A NEW CATEGORY OF FOR ALMOST 6 YEARS WE LAUNCHED THIS LAST WEEK IN INDIA, FOR NOW IT IS AN INDIA SPECIFIC PRODUCT BECAUSE IF YOU LOOK AT THE MARKET A LOT OF PEOPLE STILL HAVE THESE OLD- SCHOOL TVS AND THEIR LEAPFROGGING SO THEY ARE NOT GOING TO BUY A FLATSCREEN TV THEY WILL GO IMMEDIATELY INTO A SMART TV AND BECAUSE WE MAKE SMART PHONES WE HAVE A I WOULD SAY GOOD OBSERVATIONS WHEN IT COMES TO USER EXPERIENCE SO WE WANTED TO LEVERAGE THAT EXPERIENCE AND CREATE A BETTER TV. NOW THAT WE HAVE BOTH CATEGORIES WE CAN FIGURE OUT WAYS IN WHICH THESE TWO CATEGORIES CAN INTERACT BETTER SO JUST A QUICK EXAMPLE FOR THOSE WHO USE SMART TVS IT IS REALLY HARD TO USE THE KEYBOARD, IF YOU HAVE A SMALL REMOTE CONTROL YOU HAVE TO GO UP DOWN IN LEFT AND RIGHT TO ENTER THE LETTERS AND EVENTUALLY, FOR US YOU CAN USE YOUR PHONE, JUST USE THE PHONE KEYBOARD TO ENTER WHATEVER YOU WANT.>>THAT’S A LONGER UPGRADE CYCLE TO MOST USERS WHEN YOU’RE TALKING ABOUT THREE YEARS, GRANTED IT’S ELONGATED THAT YOU ARE NOT UPGRADING THEIR TVS VERY OFTEN.>>NOW WE ARE AT A PHASE WHERE PEOPLE ARE JUMPING TO THE SMART TV.>>ARE YOU ABLE TO SUSTAIN THAT ONCE ALL THOSE PEOPLE BUT THOSE SMART TVS ARE WAITING ANOTHER FIVE YEARS FOR ALL THEM TO UPGRADE AGAIN? >>IT’S A BIG MARKET AREA THERE’S A LOT OF PEOPLE HERE. YOU ARE DOING THE TV MANUFACTURING IN INDIA?>>THE TV IS MANUFACTURED IN TAIWAN.>> YOU HAVE BEGUN MANUFACTURING HANDSETS IN INDIA? >>ALMOST 2 YEARS AGO THEY INTRODUCED NEW TARIFFS FOR IMPORT OF FUNDS SO A LOT OF PEOPLE ARE MANUFACTURING LOCALLY NOW.>>SO TARIFFS OBVIOUSLY FOR CLEAR REASONS ARE A HOT BUTTON TOPIC RIGHT NOW BUT HOW MUCH ARE THESE INTERNATIONAL TERRORISTS HAVING AN IMPACT ON WHERE YOU ARE MANUFACTURING YOUR DEVICES?>> JUST MAKE THE MOST RATIONAL BUSINESS CASE AND DECIDE FROM THERE.>>DOESN’T MAKE SENSE FOR THESE TO MANUFACTURING THE LOCAL MARKET, OBVIOUSLY THERE’S A LOT TO BE SAID ABOUT CREATING JOBS FOR THESE MARKETS. >>FOR US IT MADE SENSE TO MANUFACTURING INDIA BECAUSE WE WERE ALREADY QUITE BIG IN INDIA AND I DON’T THINK THERE IS ANOTHER MARKET WE WOULD DO THAT FOR THIS YET.>>EARLIER THIS WEEK SAMSUNG ANNOUNCED THEY WERE PULLING OUT OF THE CHINESE MARKET AND THEY ARE GOING TO CONTINUE TO SELL THEIR, THEY ARE DOING THE MAJORITY OF THEIR MANUFACTURING IN INDIA AND VIETNAM RIGHT NOW SO SONY I THINK MADE A SIMILAR JUMP AS WELL, ARE YOU EXPECTING TO MAINTAIN THE MANUFACTURING OF THE DEVICES IN CHINA GOING FORWARD?>>WE DON’T HAVE ANY PLANS OF CHANGING WHERE WE MANUFACTURE, IT’S CURRENTLY IN CHINA AND INDIA. >>I ALSO WANTED TO ASK YOU A QUESTION ABOUT THE CHANGING APPROACH THAT THE COMPANY HAS HAD TO DEALING WITH CRISES, THERE WERE A FEW EARLY ON, A LOT OF DIFFERENT ONES AND THE MOST RECENT ONE BEING THERE WAS A LARGE SECURITY BREACH WITH THE SITE EARLIER LAST YEAR I THINK ABOUT 40,000 PEOPLE, CAN YOU TALK ABOUT HOW YOUR APPROACH HAS CHANGED TO DEALING WITH THESE? >>I WOULD NOT SAY OUR APPROACH HAS CHANGED I JUST THINK WE MIGHT HAVE GROWN UP OVER THE LAST COUPLE YEARS AND WHEN THERE IS A PROBLEM WE ADDRESS IT, KEEP THE COMMUNICATION LINES OPEN, TELL PEOPLE WHAT YOU’RE DOING ABOUT IT AND ONCE YOU SOLVE IT SEE IF YOU NEED TO COMPENSATE YOUR CONSUMERS. >>IS THERE AN EXAMPLE IN THE PAST OF AN INSTANCE WHERE YOU DID NOT HANDLE IT PERHAPS THE WE SHOULD HAVE?>>I DON’T KNOW DEAR MEMBERS MASTER PASS?>>YOU WANT TO EXPLAIN THAT AND 40 SECONDS?>>WE ONLY HAD 1000 PHONES AND WE ONLY WANTED TO SEED OUT 100 PHONES AND WE NEEDED TO FIND PEOPLE REALLY EXCITED ABOUT OUR BRAND SO WE HAD THIS PROGRAM WHERE YOU SIGNED UP TO SMASH YOUR CURRENT SMARTPHONE ON VIDEO TO BE ABLE TO BE ONE OF THE FIRST 100 TO BUY OUR PHONE. 140,000 PEOPLE SIGNED UP, MUCH MORE THAN EXPECTED AND THE MEDIA WROTE A LOT OF ARTICLES BOTH POSITIVE AND NEGATIVE ABOUT THAT.>>SO YOU WOULD HAVE DONE THAT DIFFERENTLY? >>IT WAS ANOTHER STAGE IN OUR MATURITY.>>THANK YOU SO MUCH.>>NOW WE ARE JOINED BY YET ANOTHER SMART PHONE MAKER CEO IN HIS VERY FIRST INTERVIEW AS CEO SO PLEASE WELCOME TO THE STAGE FROM HTC YOU AND BRIAN YOUR MODERATOR RIGHT ON STAGE. >>I THINK THE ONLY OF THE JORDAN FIST BUMP THE FIRST TIME AROUND, THANK YOU SO MUCH FOR JOINING US WE, A LOT HAS CHANGED SINCE THE FIRST TIME WE DECIDED TO HAVE HTC ON STAGE, YOU ACCEPTED THE POSITION WHAT A FEW WEEKS AGO NOW? >>IT’S MY DAY 14.>>THIS IS WEEK TWO RIGHT NOW SO I WANT TO START BY GETTING A LITTLE BIT OF CONTEXT FOR THE COMPANY SO IN THE SECOND QUARTER HTC POSTED IT’S THIS AND SECOND QUARTERLY LOSS, LAST YEAR THERE WERE SOME LARGE LAYOFFS OF THE COMPANY AND MY FIRST AND MOST IMPORTANT QUESTION FOR YOU IS WHY WOULD ANYBODY WANT TO TAKE THIS JOB?>>THAT’S A GOOD QUESTION, FIRST OF ALL I KNOW HTC FOR MANY YEARS I HAVE BEEN AN EXECUTIVE AT ORANGE AND IT WAS ONE OF THE FIRST PARTNERS OF HTC WHEN WE STARTED AND WE MOVED WITH HTC TOGETHER SO I KNOW THIS COMPANY PRETTY WELL AND WE HAVE TO TAKE THIS COMPANY IS A STRONG BRAND STILL TO BE REFRESHED BUT STILL VIVID AND VERY VALID IN EUROPE AND THE U.S., IT’S A GROUP OR BRAND THAT IS NOT UNUSUAL TO HAVE AND IN THE PAST FEW YEARS YOU SAW VIRTUAL-REALITY AND THE TEAM IS FROM A TECHNOLOGY PERSPECTIVE VERY STRONG. I REALIZE WE HAVE BEEN LAUNCHING THE 5G APP WHICH HAS BEEN ADOPTED BY MORE THAN 10 BIG CARRIERS ACROSS THE GLOBE.>>YOU STARTED ON YOUR MOST RECENT PRODUCTS, THE 5G HOTSPOT. >>THE LATEST ONE IS THE COSMOS HEADSET BUT IN THE MOBILE PHONE SPACE IT IS 5G AND AGAIN IF YOU LOOK AT THE BALANCE SHEET OF THE COMPANY VERY STRONG ASSET WE HAVE A LOT OF ASSETS, 1 BILLION CASH SO IT’S A CHALLENGE BUT WE HAVE A LOT OF STRENGTHS AND I PERSONALLY DO BELIEVE THAT THERE IS A LOT TO BE DONE TO REFRESH THE COMPANY AND MAKE THE COMPANY IN THE NEXT FEW MONTHS AND YEARS AGAIN. I BELIEVE THERE IS A FANTASTIC CHALLENGE AND WE WILL GET THERE. >>THERE’S A BIG DIFFERENCE BETWEEN THE NEXT TWO YEARS AND THE NEXT FEW MONTHS DO YOU BELIEVE THERE IS ENOUGH IN THE WORKS RIGHT NOW THAT THERE WILL START TO BE A TURNAROUND THE NEXT FEW MONTHS?>>WE HAVE A CRADLE AT HTC, WHY DO WE HAVE THIS BECAUSE 5G WILL CHANGE A LOT OF THINGS IN THE INDUSTRY. 5G MEANS THAT THE LATENCY OF THE NETWORK WILL BECOME VERY VERY SHORT, MUCH SHORTER BUT ALSO SOMETHING WHICH IS VERY IMPORTANT UNDERNEATH AND THAT PEOPLE ARE NOT USED TO SPEAKING ABOUT IS IPV6 WHERE ALL THE CONNECTED OBJECTS WILL HAVE THEIR OWN IP ADDRESS SO WE CAN ADDRESS THEM INDIVIDUALLY AND WHAT DOES THAT MEAN FUNDAMENTALLY? TODAY IF YOU HAVE A SMART PHONE OR WHATEVER OBJECT CONNECTED ON 4G THE NETWORK IS DRIVING THE OBJECT, THE OBJECT IS A SLAVE OF THE NETWORK BUT — >>YOU SOUND LIKE SOMEBODY THAT HAS SPENT A LOT OF TIME TELECOM WHICH MAKE SENSE BUT WHAT’S THE BENEFIT TO A COMPANY THAT WE TRADITIONALLY THOUGHT OF AS PRODUCING HANDSETS OR ARE YOU TALKING ABOUT CREATING 5G INFRASTRUCTURE, WHAT ROLE IS HTC GOING TO PLAY GOING FORWARD?>>IF YOU BELIEVE IN ACTS ARE OR WHATEVER IT IS IT’S OBVIOUS IT WILL NEVER WORK IF YOU DON’T HAVE HIGH BOUNDARIES AND LOW LATENCY AND CUSTOMERS WANTS TO ENTER AND EXPERIENCE AND PROVIDERS DON’T HAVE THIS KNOWLEDGE OF END-TO-END EXPERIENCE SO IF YOU ONLY PROVIDE A PIECE OF IT I THINK YOU MISSED PART OF WHAT CUSTOMERS WILL REQUEST AND IF YOU LISTEN TO YOUR CUSTOMERS THEN YOU SEE THAT THEY ARE STRUGGLING FROM THE ACCESS POINTS TO THE CONTENT TO HAVE A VERY SMOOTH EXPERIENCE AND THIS IS REQUESTING A LOT OF TECHNOLOGY AND THAT IS WHAT HTC CAN PROVIDE BECAUSE WE HAVE THIS BACKGROUND OF NETWORK TECHNOLOGY UP TO OUR CONTENT PLATFORM AND IF THERE ARE NOT MANY COMPANIES TO MY KNOWLEDGE IT’S THE ONLY ONE WHO CAN REALLY BE IN THE POSITION TO PROVIDE THIS TYPE OF END-TO-END SOLUTION SO IT’S WHEN YOU TALK ABOUT B2C SECURITY OR THIS TYPE OF THING IT MAKES A LOT OF SENSE TO HAVE A SOLUTION. >>LET’S BREAK THAT DOWN THAN A LITTLE BIT IT MAKES SENSE FROM THE STANDPOINT OF A HOTSPOT AND AN HTC DEVICE WITH 5G, OR BY AS HE MENTIONED THAT WHERE DOES HTC COME IN WHEN WERE TALKING ABOUT DEALING WITH A HOSPITAL FOR EXAMPLE?>>IF YOU TALK ABOUT A HOSPITAL WHERE YOU MIGHT HAVE A NURSE TO BE TRAINED OR WHEN YOU HAVE DOCTORS TO DO THEIR JOB NEED TO MAKE SURE THAT YOU HAVE, OR WITH THE 5G ALSO COMES THE AGE IF YOU LOOK AT HOW FAR WE ARE FROM PROVIDING SOLUTIONS WE ARE PRETTY FAR, WE ADD HTC HAVING THE ENTIRE CHAIN WE CAN PROVIDE SOME SOLUTIONS TO THE COMPANIES WHICH ARE MUCH CHEAPER AND MUCH EASIER TO INSTALL COMPARED TO WHAT THEY HAVE NOW WHICH IS ALMOST NOTHING.>>IT SOUNDS LIKE YOU’RE TALKING MOSTLY ABOUT THE ENTERPRISE SIDE OF THE BUSINESS WHICH IS BECOMING MORE AND MORE INTERESTING TO YOU, WHAT DO YOU SEE THE BREAK DOWN GOING FORWARD, THE COSMOS LUNCH YESTERDAY SO CURRENTLY ARE VERY INTERESTED IN THE CONSUMER SIDE AS WELL AND GOING FORWARD HOW MUCH OF THE BUSINESS IS GOING TO BE CONSUMER VERSUS ENTERPRISE?>> THEY ARE KIND OF COMPLEMENTARY, IF YOU LOOK AT ALL THE FORECAST AND FORM OF DATA CONSUMPTION, THE VOLUME IS CONSUMED BY EVERYONE, IT WILL BE 10 TIMES MORE THAN THE ONE WE HAVE TODAY SO IT’S A BIG INCREASE BUT WHAT’S MORE FUNDAMENTAL IS THE WAY THESE INCREASES WILL TAKE PLACE. TODAY 70 OR 80% OF THE CONSUMPTION IS B2C MOSTLY VIDEO STREAMING AND IF YOU LOOK AT 65 YEARS FROM NOW IT WILL BE REVERSED IT WILL BE AT 80% AND IF CUSTOMERS ARE ASKING US TO HELP THEM TO BUILD A STABLE EXPERIENCE WE HAVE TO FOLLOW OUR CUSTOMERS REQUEST AND THE VOLUME OF THAT MEANS THAT IN TERMS OF BUSINESS IT STORED NEED TO BE.>>TERRY ASKED THE QUESTION IN A MORE PRAGMATIC WAY, DO YOU THINK YOU CAN CONTINUE TO CONTINUE TO COMPETE WITH A FACEBOOK? >>I DON’T THINK HTC IS HERE TO COMPETE WITH FACEBOOK. FACEBOOK AND HTC AND MICROSOFT, SOME CHINESE BRAND, WE ARE HERE TO CREATE A NEW WORLD AND WE HAVE AN INCREDIBLE OPPORTUNITY AND POSSIBILITY TO CREATE IT, THERE WILL NOT BE ONLY ONE COMPANY OF THIS WORK, EACH OF US WILL BE PART OF THIS NEW CREATION AND WHAT’S FASCINATING IS HOW ALTOGETHER A COMPETING OR CO-COMPETING TOGETHER WE WILL BE ABLE TO BUILD THIS WORK SO I THINK THE SPACE IS IS VERY LARGE AND ALTOGETHER WE WILL BE ABLE TO BUILD SOMETHING AND FACEBOOK WILL HAVE ITS OWN CHARACTER OR SPECIFICITY, HTC WILL CONTINUE TO HAVE ITS OWN JOURNEY, FROM TIME TO TIME WE WILL RECOVER AND OVERLAP, THAT’S NORMAL LIFE AND IT’S GOOD TO HAVE THIS TYPE OF OVERLAPPING BUT I THINK ON THE LONG TERM WE WILL NOT COMPETE WE WILL PARTICIPATE IN CREATING THIS NEW WORLD OF OPPORTUNITY. >>THE WORLD OF VR IS GOING TO BE LARGE, RIGHT NOW THE NUMBER OF HEADSETS SOLD IS ACTUALLY PRETTY SMALL RIGHT NOW, IS IT INCREASING AT A RAPID ENOUGH RATE THAT YOU THINK EXAR IS GOING TO BE THE PRIMARY BUSINESS IN THE COMING YEARS?>> AGAIN IT IS A SERVICE AND PART OF THE INFRASTRUCTURE.>>ALL THE DIFFERENT LEVELS OF SOFTWARE AND HARDWARE, ALL OF THOSE THINGS WHATEVER THE REVIVED PORTION OF HTC IS IS THAT GOING TO OVERTAKE MOBILE? >> ON A LONG-TERM BASIS YES. IF I LOOK AT FIVE YEARS FOR SURE. >>SO FIVE YEARS IS PROBABLY THE POINT WHERE THOSE LINES PROSPER YOU? >>I WISH BEFORE BUT REASONABLY SPEAKING IT WILL BE 4 TO 5 YEARS.>>THAT’S THE REALISTIC TIMELINE YOU’RE GIVING FOR THE CHANGE. >>WE WILL MAKE AND DO ALL OUR BEST TO MAKE IT SHORTER BUT THE ADOPTION IS KEY IT’S NOT ONLY A QUESTION OF TECHNOLOGY, HOW PEOPLE ARE ADOPTING NEW TECHNOLOGY AND WE ALL KNOW IT’S ABSOLUTELY CRITICAL AND AT THE END OF THE DAY WE ARE HUMAN BEINGS AND THOSE HUMAN BEINGS ARE DEALING WITH SOMETHING TOTALLY NEW AND UNUSUAL WHICH IS NOT IN OUR HUMAN DNA IT IS A VIRTUAL WORLD AND IT WAS NOT EXISTING FIVE YEARS AGO AND YOU HAVE 8 BILLION PEOPLE HE WANTS TO EMBRACE A WORLD AND KNOW THAT MOST OF THEM STILL NOT HAVE EMBRACED THE DIGITAL WORLD. THERE IS A PSYCHOLOGY CALLED SOMETHING WHICH IS INSIDE OF THE HUMAN BEING AND WE HAVE TO RESPECT THIS HUMAN BEING BEING OBLIGED TO LEARN AND FEEL MORE COMFORTABLE. THE VAST MAJORITY OF PEOPLE ARE NOT COMFORTABLE WITH VIRTUAL REALITY AND WE HAVE TO LISTEN TO OUR CUSTOMERS TO PROVIDE THEM A BETTER EXPERIENCE WHICH FITS WITH WHAT THEY ARE WILLING TO EMBRACE THE VIRTUAL WORLD. >>I THINK IT’S A FAIR ASSESSMENT TO SAY IT’S GOING TO TAKE SOME SORT OF LEARNING AND CONTEXTUALIZATION TO GET MORE CONSUMERS TO UNDERSTAND WHAT VR IS AND WHY TO PLAY A ROLE IN THEIR LIFE. RIGHT NOW WE ARE AT A POINT OF SUCH RATIONS WERE THEY DON’T NEED SMART PHONES EXPLAINED TO THEM, EVERYBODY PROBABLY IN THIS AUDIENCE RIGHT NOW HAS A SMART PHONE SO ABOUT EIGHT YEARS AGO I THINK HTC WAS SUMMER AND ENABLE NEIGHBORHOOD OF ABOUT 11% GLOBAL SMART PHONE SALES, WHEN YOU COME IN AS A FRESH FACE AND ARE ABLE TO REFLECT UPON THAT WERE NOW IT’S AT A POINT WHERE IT IS IN THAT OTHER COLUMN WHEN WE SEE THOSE GLOBAL NUMBERS, WHAT WENT WRONG? WHAT ARE THE NUMBERS DROP?>> HTC HAS STOPPED INNOVATING IN THE HARDWARE OF THE SMART PHONE AND PEOPLE LIKE APPLE AND SAMSUNG AND MOST RECENTLY OTHERS HAVE DONE AN INCREDIBLE JOB IN INVESTING IN THEIR HARDWARE AND WE SIMPLY DIDN’T BECAUSE WE HAVE BEEN FOCUSING ON INVESTING ON INNOVATION IN THE VIRTUAL REALITY SO I REMEMBER WHEN I WAS YOUNG SOMEBODY TOLD ME TO BE RIGHT AT THE WRONG TIME IS TO BE WRONG AND TO BE RIGHT AT THE WRONG TIME IS TO BE RIGHT, I THINK WE HAVE TO BE RIGHT AT THE WRONG TIME AND NOW WE HAVE TO TRY TO CATCH UP, WE MADE A TIMING MISTAKE IT IS VERY DIFFICULT TO ANTICIPATE THE TIME AND TO HAVE THE TIME FEELING AND HTC MADE A MISTAKE IN TERMS OF TIMING AND IT’S A DIFFICULT MISTAKE AND WE ARE PAYING FOR THAT BUT WE HAVE SO MANY ASSETS IN TERMS OF INNOVATION THAT I BELIEVE I’M SURE WE ARE RECOVERING OF THIS TIMING MISTAKE.>>YOU FEEL THE COMPANY DIVERTED TOO MUCH OF ITS ASSETS TOWARDSEXAR VERSUS STAYING ON THE MOBILE SPACE AND INNOVATING THERE? >>I THINK THE COMPANY HAS BEEN SWITCHING TO EARLY, YES.>> OBVIOUSLY THERE WAS A MARKET AND YOU SORT OF LET YOUR FOOT OFF THE PEDAL IN THE CATEGORY. SO HOW DO YOU WRITE THAT WHEN IT COMES TO THESE DEVICES? HOW DO YOU CHANGE THAT, HOW DO YOU START INNOVATING THAT WAY AND ARE YOU GOING TO BE ABLE AND THIS FIVE YEAR TIMEFRAME OR ANY TIMEFRAME THAT WE CAPTURE ANY OF THAT MARKETSHARE YOU HAVE LOST? >>IN TERMS OF SMART PHONES I THINK WE HAVE TO ACKNOWLEDGE THAT HTC HAS TO IMPROVE AND WE WILL CONTINUE TO WORK ON THE SMART PHONE, WE ARE WORKING ON THE SMART PHONE AND OBVIOUSLY I THINK THAT THEY ARE SOME LOW HANGING FRUIT WE CAN GRAB WHICH ALLOWS TO DO BETTER.>>WHAT’S A GOOD EXAMPLE THAT YOU CAN USE TO START TO INCREASE AGAIN? >>IF WE LOOK AT OUR PRIZED DECISION IN TERMS OF SMART PHONES WE DON’T HAVE THE VOLUME ANYMORE TO MAKE SMART PHONES SO WE HAVE TO ACKNOWLEDGE THE REALITY AS IT IS. IF WE WANTS TO CATCH UP WE NEED TO PARTNER WITH SOME PEOPLE IN ORDER TO GRAB THE VOLUME AND RESTART. SO I THINK THAT IS WHAT WE HAVE TO DISCUSS INTERNALLY AND EVENTUALLY TO PUT IT IN PLACE. NOW REGARDING THE OTHER PART OF OUR BUSINESS WHERE WE WANTS TO GO I THINK IN 5G WE ARE PRETTY GOOD WE ARE THE ONLY 5G COMPANY INCLUDING SAMSUNG WHO CAN REALLY ARGUE THAT THEY ARE IN, WE ARE ALMOST ALL THE COUNTRIES, WE ARE IN THE U.S. WITH SPRINT, AND EVERY COUNTRY WE HAVE STARTED AND ON THE 5G WE ARE RIGHT ON SPOT, WE ARE A LEADING COMPANY. REGARDING VIRTUAL REALITY OBVIOUSLY THIS IN MY VIEW THE BEST HEADSET EXPERIENCE THAT YOU CAN FIND SO WE ARE REALLY LEADING THIS PART AND BEING BETTER AND IMPROVING BETTER, WE WILL CREATE EVEN MORE TRACTION TOWARD CUSTOMERS AND HOPEFULLY THEY WILL CONTINUE TO JOIN THE VR WORLD AND HELP US TO BUILD THIS WORLD TO GET HER TOGETHER.>>OBVIOUSLY IT’S A HUGE PART OF THE COMPANIES BUSINESS AGAIN WHAT DOES THAT SHORT-TERM PLAY LOOK LIKE? HOW MUCH OF IT IS FOR OTHER COMPANIES IN DIFFERENT MARKETS, HOW MUCH OF IT IS LICENSING OUT THE BRAND.>>THEY HAD A LOT OF DISCUSSION WE DO NOT HAVE WE WILL COME BACK TO YOU AT THE RIGHT TIME HOPEFULLY VERY SOON WE KNOW OUR WEAKNESSES AND TRY TO SOLVE THEM THROUGH DIFFERENT OPTIONS, SOME OF THEM YOU JUST MENTIONED AND HOPEFULLY WE WILL BE ABLE TO SATISFY OUR CUSTOMERS. A FEW MONTHS FROM NOW WE WILL BE ABLE TO PROVIDE GOOD SURPRISED TO OUR CUSTOMERS AND THEN WE MIGHT CHANGE THE GAME. >>IS THERE A MARKET THAT MAKES PARTICULAR SENSE RIGHT NOW, WE JUST SPOKE TO CARL ABOUT INDIA OBVIOUSLY THERE’S A HUGE MARKET WAS A LOT OF OPPORTUNITY, IS THERE A PARTICULAR SEGMENT YOU’RE GOING AFTER RIGHT NOW WITH MOBILE DEVICES?>> EVERYBODY KNOWS ABOUT THE TRADE WAR BETWEEN CHINA AND THE USA, EVERYBODY KNOWS ABOUT THE TRADE WAR IN EUROPE SO AS HTC WERE NOT LOOKING AT LOW-END DEVICES WE ARE LOOKING AT COUNTRIES THAT HAVE A HIGHER GTP WE ALL FACE THE SITUATION WHERE MARKETSHARE IS GOING DOWN AND NOT BEING ABLE TO HAVE THE REFORM ANYMORE SO HOW TO GIVE CUSTOMERS THE OPPORTUNITY TO COME BACK TO WHAT THEY WISH IN TERMS OF BEST IN CLASS HARDWARE AND TARTAR FEE PHOTOGRAPHY.>> WHEN YOU ARE HAVING THESE CONVERSATIONS WITH THE BOARD AND YOU ARE GIVING THEM A TIMELINE, WHAT TIMELINE ARE YOU GIVING THEM FOR PROFITABILITY?>>FIRST OF ALL THOSE ARE BOLD DISCUSSIONS I WILL PROVIDE DIFFERENT STRATEGIC OPTIONS TO THE BOARDS VERY SOON AND THE BOARD WILL HAVE TO DECIDE AND MAKE SOME CHOICE.>>WHAT IS YOUR GUT FEELING AND WHAT ARE YOU TELLING THEM WHEN YOU FEEL LIKE THAT SHIP IS GOING TO BE RIGHTED?>>I TRULY BELIEVE THAT IT DEPENDS ON THE 5G AND YOU KNOW THAT 20/20 WILL BE THE STARTING POINT OF 5G AND USUALLY IT TAKES TWO YEARS TO DEPLOY A NETWORK SO 2023 WILL HAVE SIGNIFICANT COVERAGE IN DEVELOPING COUNTRIES. STARTING FROM HERE YOU WILL SEE A ROOM BUT I BELIEVE THAT 2025, PROBABLY EVEN EARLIER WILL BE THE TURNING POINT FOR SURE. IF POSSIBLE EARLIER BUT WE ARE DEPENDENT ON THE CARRIER NETWORK DEPLOYMENT SPEED.>>WE WILL MEET BACK HERE IN 2023 UNFORTUNATELY WE ARE OUT OF TIME. THANK YOU SO MUCH.>>IS BLOWN MY MIND THAT HE HAS SAID 2020 SO MANY TIMES DOES IT EVER HIT YOU? IT’S KIND OF WEIRD.>>WE ARE GOING TO WELCOME OUR NEXT GUEST ON THE ROADSIDE PO, PLEASE WELCOME THE CEO AND COFOUNDER OF SOMETHING. >>IT’S BEEN A WHILE, THIS WEEK I LEARNED YOU ARE A BATTLEFIELD COMPANY HERE JUST A SHORT EIGHT YEARS AGO IN 2011 HOW WAS THAT PITCH? >>HORRIBLE. >>WHY? >>I HAD A PRESENTATION AND WE HAD A DEMO PLANNED AND I REMEMBER TALKING THE NIGHT BEFORE AND I INSISTED TO DO A LIVE DEMO OF THE PRODUCT AND YOU KNOW EVERYBODY WAS LIKE THAT’S NOT A GOOD IDEA THERE ARE TOO MANY PEOPLE AND THE WI- FI AND I SAID STEVE JOBS DOES LIVE DEMOS SO WHY NOT? AND OF COURSE IS COMPLETELY WENT WRONG, THE APP CRASHED, WE COULD NOT GET IT TO LOAD, THE IDEA WAS THAT YOU WOULD SEE A POSTMAN ARRIVING AND HE WOULD HAVE THIS GIANT BOX OF COOKIES AND THERE WAS A RAMP WE INSTALLED ON THE STAGE BUT FOR SOME REASON THE RAMP HAD BEEN MOVED TO THE OTHER SIDE SO IT ALL FELL APART AND I THINK I WAS VERY CLOSE TO CRYING.>> THINGS WORKED OUT PRETTY WELL. >>I’M HAPPY TO ANNOUNCE THE WINNER OF THE BATTLEFIELD COMPETITION TODAY.>>IT HAS BEEN AN IMPORTANT YEAR FOR POST MATES, MOST RECENTLY YOU GUYS RAISED A $225 MILLION AROUND VALUING YOUR BUSINESS AT 2.4 BILLION BUT MORE IMPORTANTLY YOU SUBMITTED A CONFIDENTIAL FILING IN FEBRUARY SO WE EXPECTED TO SEE THIS FILING IN SEPTEMBER, IT’S NOW OCTOBER, WHERE’S THE FILING? >>I’M ASKING MYSELF THE SAME QUESTION EVERY DAY. AS SOON AS WE FIND IT I WILL LET YOU KNOW. >>YOU LOST IT?>>THE REALITY IS WE WILL IPO WHEN WE BELIEVE WE HAVE FOUND THE RIGHT TIME FOR THE BUSINESS AND THE RIGHT TIME IN THE MARKET AND IF YOU LOOK AT THE MARKETS RIGHT NOW I BELIEVE THEY ARE CHOPPY WHEN IT COMES TO GROWTH COMPANIES, IT SEEMS TO BE AN APPRECIATION BUT WE ARE HOPEFUL THAT WE FIND A GREAT WINDOW TO GET OUT THERE. >>DO YOU THINK IT WILL BE 2019?>>IT’S DEPENDS MORE ON THE MACRO THAN IT DOES OUR READINESS.>>WAS THAT SORT OF AN EFFORT TO DOWNSIZE EXPECTATIONS BECAUSE THE MARKETS AS YOU SAID HAVE NOT BEEN AS FRIENDLY TOWARD THESE BIG COMPANIES AS WE HAVE EXPECTED GOING INTO 2019? >>THE EXACT OPPOSITE IT WAS VERY OPPORTUNISTIC AND I THINK WE MADE GREAT PROGRESS AS A BUSINESS AND OTHERS SOMETIMES HAPPENS YOU ARE DOING SOME TESTING AND THERE IS SOME INTEREST AND IT SOUNDED LIKE A GOOD IDEA TO TAKE MORE MONEY IN. >>REPORTS SAY THAT POST MATES POSTED ABOUT $400 MILLION IN REVENUE IN 2018 BUT THE COMPANY IS NOT PROFITABLE YET, DO YOU HAVE A SENSE OF WHEN POST MATES WILL BE A PROFITABLE COMPANY? >>CURRENTLY WE DO I THINK PEOPLE WILL BE SURPRISED TO HEAR THAT WE INTERNALLY BELIEVE PROFITABILITY IS A MANAGED OUTCOME. I WILL GIVE YOU AN EXAMPLE FOR THAT. SEPTEMBER 2018 WE WERE ALMOST PROFITABLE AS A COMPANY BUT WE WERE NOT GROWING AS FAST AS SOME OF OUR COMPETITORS SO RATHER THAN CONTINUING THAT PASS OF PROFITABILITY DECIDED TO RAISE MORE MONEY AND WE INVESTED THAT THIS YEAR BUT WE INVESTED THAT ON VERY HEALTHY ECONOMICS AND WE BELIEVE PROFITABILITY IS A MANAGED OUTCOME.>>MORON THE IPO CONVERSATION AS YOU SAID IT HAS NOT BEEN FIRMLY TO COMPANIES LIKE UBER AND LYFT AND MEANWHILE YOU HAVE BEEN GEARING UP ALL YEAR I’M JUST CURIOUS WHAT HAS YOUR REACTION BEEN WATCHING THIS HAPPEN?>> OBVIOUSLY THE IPO WAS SUPPOSED TO BE A GREAT EVENT A LOT OF PEOPLE WERE EXCITED ABOUT IT, I BELIEVE THE PEOPLE THAT WORKED AT UBER AND I’M TALKING ABOUT THE EMPLOYEE IS NOT NECESSARILY THE FOUNDERS I THINK THEY WOULD HAVE DESERVED A GREAT PERFORMING COMPANY BECAUSE I THINK THEY SOMETIMES FORGET THERE IS A FOUNDER AND CEO BUT THERE’S HUNDREDS OF THOUSANDS OF PEOPLE THAT WORK EVERY DAY SO I DON’T THINK DESPITE I THINK IT’S IMPORTANT FOR US TO UNDERSTAND FOR OUR GROWTH COMPANIES HAVING EQUITY IN THE BUSINESS IS A HUGE PART OF OUR ECOSYSTEM AND IT WORKS IF DONE RIGHT VERY WELL BECAUSE IT HELPS SPREAD THE WEALTH TO A LOT OF PEOPLE THAT TAKE THE RISK EARLY ON. I WAS NOT EXCITED IT DIDN’T GO WELL AND OBVIOUSLY THE MARKETS WERE MORE RESERVED YOU HAVE COMPANIES DEBATING NEED TO SLASH THEM MULTIPLE TIMES I’M PRETTY SURE THAT THEY MADE MY ADVICE AND IF THEY HAD DONE IT DIFFERENTLY MAYBE IT WOULD HAVE BEEN BETTER FOR THE MARKETS. >>IT SEEMS LIKE POST MATES HAS CHOSEN THE ROUTE OF IPO BUT REPORTS HAVE SAID IN THE PAST THAT POST MATES HAS BEEN APPROACHED BY UBER AND FOR DASH AND CAN YOU CONFIRM THOSE REPORTS?>>I DON’T THINK IT DOES ANY GOOD TO SPECULATE I THINK YOU HAVE PLAYERS HERE IN THE U.S. AND IN THIS SPACE I THINK EVERYBODY IS WELL AWARE OF THE STRENGTH AND WEAKNESSES OF EACH OTHER AND AT SOME POINT DOWN THE LINE IF WE TAKE EUROPE FOR EXAMPLE YOU WILL SEE CONSOLIDATION IN THE MARKET. PEOPLE HAVE CONVERSATIONS ALL THE TIME BUT I WOULD NOT READ TOO MUCH INTO IT.>>THEY HAVE RAISED DOUBLE THE AMOUNT OF CAPITAL I THINK NEARLY $2 BILLION, MAYBE IN FIVE OR SIX YEARS A LOT OF THAT MONEY HAS COME FROM SOMETHING DID THEY APPROACH POST MATES AND OFFER THEM ANY SORT OF DEAL?>>I WANT TO COMMENT ON SPECIFICS BUT IF YOU ARE A HIGH-GROWTH COMPANY I’M SURE THAT AT SOME POINT IN YOUR LIFECYCLE YOU SPEAK TO ALL THE PLAYERS.>>WHY DOES DORA NASH NEED $2 BILLION IF THEY HAVE RAISED SIGNIFICANT LAST.>> YOU NEED TO ASK TONY, MAYBE SHE NEEDS IT. I BELIEVE THERE WAS A TIME WHEN DIVISION FUNDS WERE VERY EXCITING AND TO A CERTAIN EXTENT I ALWAYS BELIEVE AN IMPORTANT INSTRUMENT AT THE TIME BECAUSE YOU HAD COMPANIES THAT STAYED PRIVATE FOR THAT MUCH LONGER OR THAT MUCH GREATER NEED AND AMOUNTS OF CAPITAL THAN YOU EVER HAD BEFORE. IT WAS A BLESSING AND A CURSE, WHAT YOU KNOW NOW NOTHING REALLY COMES WITHOUT STRINGS ATTACHED SOMETIMES IF YOU HAVE VALUATIONS THAT ARE SENT BY ONE LARGE INVESTOR IT MIGHT BE A RATE THAT’S SOMEWHAT UNREALISTIC, YOU EITHER NEED TO RECOVER FROM THAT I HAVE NO DOUBT THAT THEY CAN DO IT IN THE PUBLIC MARKETS AND IF YOU ARE STILL PRIVATE AND HE WANTS TO GET OUT ON A HIGH VALUATION YOU NOW HAVE TO CONVINCE THE LAST MONEY IN THAT THE EVALUATION HAS BEEN SET BY THIS EXTREMELY SUCCESSFUL GROWTH VEHICLE IS ACTUALLY A REALISTIC VALUATION AND NOT SOMETHING THAT’S JUST BUILT ON LEVERAGE SO I THINK THAT’S WHY OR HOW I WOULD DESCRIBE IT. >>YOU MENTIONED HINDSIGHT IF YOU WERE TO GO BACK EIGHT YEARS WHEN YOU HAVE ENTERED THE FOOD DELIVERY SPACE WHICH IS AN EXTREMELY COMPETITIVE BUSINESS TO BE IN.>>ABSOLUTELY THERE IS ALWAYS PROS AND CONS IT’S ONE OF THE MOST COMPETITIVE CONSUMER SPACES I CAN THINK OF WE HAVE GREAT COMPETITION THAT WE FIGHT WITH. ON THE FLIPSIDE I’M VERY THANKFUL THAT I WAS ABLE TO BE A PART OF THAT WITH THE COMPANY THAT I FOUNDED, I BELIEVE SO MANY IDEAS NEVER MAKE IT PAST THE INITIAL STAGE AND THAT’S GOOD IF IT’S JUST QUICK LEARNING AND YOU THEY ARE SOMETHING ELSE OUT BUT I BELIEVE IT’S AN INCREDIBLE FEELING FOR A FOUNDER AND ENTREPRENEURS, YOU FIND THIS PRODUCT MARKET AND YOU HAVE TO FIGURE OUT SO MANY THINGS AND YOU HAVE TO RECRUIT AND HIRE AND TALK TO PEOPLE AND YOU CAN SEND AN EMAIL AND THEY HAVE 20 MINUTES FOR YOU, IT IS PRETTY GREAT TO SEE A COMPANY GROW DESPITE THE FACT IF I COULD CHOOSE I WOULD LIKE POST MATES TO HAVE 85% MARKET SHARE AND THERE WOULD BE NO COMPETITION. >>WHEN WE TALK ABOUT ROBOTICS A LITTLE BIT? YOU HAVE PUT IN A LOT OF TIME IN ESSENTIALLY THESE LITTLE ROBOTS THAT WILL BE COMPLETING DELIVERIES. CAN YOU TELL US FOR STARTERS HOW MUCH MONEY YOU HAVE INVESTED IN AUTONOMOUS DELIVERY EFFORTS? >>NOT AS MUCH AS YOU WOULD THINK SO RATHER THAN SHARING A DOLLAR AMOUNT I CAN DRAW SOME COMPARISONS HERE, WHEN WE THOUGHT ABOUT THE IDEA THAT WE COULD LEVERAGE AUTONOMOUS VEHICLES TO DO CERTAIN TYPES OF DELIVERIES WE STARTED TALKING TO SOME OF THE TEAMS OUT THERE THERE USED TO BE AROUND EIGHT OR NINE PLAYERS AT THE TIME AND WE JUST WANTED TO GET A SENSE IF THEY WOULD JOIN A COMPANY LIKE POST MATES AND WE HAD SOME REASONS WHY BELIEVE IT WAS GOOD TO BRING IT IN-HOUSE WE HAD HIS CONVICTION IF WE HAVE MILLIONS OF DELIVERIES AND DATA POINTS WE CAN BE OUR OWN FIRST CUSTOMER THAT GIVES YOU A SLIGHT EDGE VERSUS A COMPANY THAT DOES NOT HAVE THE INFORMATION SO WE TRY TO RECRUIT SOME OF THE COMPANIES OUT THERE BUT IT TURNS OUT THAT THE VALUATIONS WERE AROUND $100 MILLION AT THE TIME. A LOT OF LARGE PLAYERS ENTER THE AUTONOMY SPACE AND STEALS HAPPENED SO I THINK A LOT OF FOUNDERS THOUGHT WHILE I CAN ALSO GET SOLD FOR 500 OR $1 BILLION SO IN TOTAL WE INVESTED A VERY INSIGNIFICANT AMOUNT COMPARED TO $100 MILLION INTO THE BUSINESS, WE HAVE DOZENS OF THESE SERVERS WE ARE LUCKY ENOUGH TO HAVE LICENSES IN A COUPLE CITIES WHERE WE ARE TESTING THEM AND I BELIEVE THEY ARE THE CLOSEST THING TO AN EYE THAT EXISTS RIGHT NOW AND THE ROBOT DELIVERY SEGMENT. >>SO YOU SPEND LESS MONEY TELLING HOUSTON YOU WOULD HAVE TO POTENTIALLY TEAM UP OR ACQUIRE AN EXISTING ROBOT? >>WE DID SOME VERY SMART HIRES UNIVERSITY IN VANCOUVER HAS DONE A REMARKABLE JOB PULLING THE REST OF THE PEOPLE IN, WE ARE A LITTLE RUTHLESS FROM STEALING THEM FOR PLACES THAT WE KNOW THAT THE GREAT WORK IT WORKED OUT FOR US. >>COULD YOU EXPLAIN HOW THIS IS GOING TO WORK BECAUSE IN MY RESEARCH IT SOUNDED LIKE THEY WERE STILL GOING TO BE PUT IN CARS WITH POST MATES DELIVERY PEOPLE AND BROUGHT OUT OF THE CARS AND THEY COMPLETE THEIR DELIVERY, CAN YOU EXPLAIN THE LOGISTICS ON HOW THEY EXPECT PEOPLE TO SEE THESE THINGS? >>CARS THE LONGER NEEDED THEY CAN DRIVE OUT OF THE DEPOT BUT FOR THE FORESEEABLE FUTURE I WOULD SAY MAYBE FOR THE NEXT ONE OR TWO YEARS THEY WILL BE TO A LESSER DEGREE OPERATED. HERE’S THE INTERESTING THING IF YOU ARE GOING TO HAVE AN AUTONOMOUS VEHICLE WITH PASSENGERS IN IT AND HAVE COST SAVINGS, A DRIVER IN THE CAR DOES NOT HELP YOU GET ANY CLOSER TO THAT GOAL, YOU MAKE THE VEHICLE SMARTER AND HOPE FOR FULL ECONOMY AT SOME POINT. A DELIVERY VEHICLE THAT CAN BE OPERATED MAYBE EVEN ON A RATIO OF ONE OPERATOR TO 10 SERVES CAN VERY QUICKLY WITHOUT BEING FULLY AUTONOMOUS DO DELIVERIES AT AN EXTREMELY LUCRATIVE AND ATTRACTIVE COST BASE SO IT DOES NOT NEED TO BE FULLY AUTONOMOUS FOR US TO MAKE SENSE.>>SO THIS WILL MAKE DELIVERIES MORE EFFICIENT, WILL THEY CUT JOBS THERE WERE REAL HUMAN BEINGS?>>ALL EVIL COMPUTERS WILL CUT JOBS AND AND I WILL TAKE OVER MANKIND.>>COUNTY JOBS DO YOU EXPECT YOU WILL HAVE TO CUT?>>I DON’T THINK THAT’S THE RIGHT WAY TO LOOK AT IT THEY WILL AUGMENT THE CURRENT FLEET OBVIOUSLY AND I BELIEVE THAT BY THE TIME THEY COULD DO MOST OF THE DELIVERIES WE WILL HOPEFULLY HAVE DONE A GOOD ENOUGH JOB TO FREE UP THE RESOURCES AND CAPACITIES OF WHAT THE POST MATES OF TODAY CAN DO, VERY RARELY WORKFORCES SHRINK DRAMATICALLY OVERNIGHT VERSUS A BIG MOVEMENT, I AM SERIOUS ABOUT THE AI THOUGH STAY AWAY FROM IT.>>POST MATES WAS RECENTLY GRANTED A PERMIT TO OPERATE THESE SHORT-TERM IN SAN FRANCISCO SO YOU ARE TESTING THESE, WHERE ELSE DO YOU PLAN ON TESTING THE SERVE ROBOTS AND WHEN YOU EXPECT ALL THE PLANNING WILL BE OVER AND WHAT IS YOUR BEST GUESS AS TO WHEN WE WILL BE RECEIVING ORDERS THROUGH THESE?>>WE ALREADY DO IT IN LA, IN NEW YORK A LARGE PORTION OF OUR DELIVERIES GETS TERMINATED AT THE DOORMAN OBVIOUSLY WE DON’T HAVE THAT HERE IN SAN FRANCISCO BUT THE DOORMAN WILL TAKE THE FOOD AND WE WILL SEND IT UP TO THE CUSTOMER WHO ORDERED IT AND THAT’S A GREAT USE CASE BECAUSE YOU DON’T EVEN HAVE TO INTERACT WITH SERVE, THE DOORMAN IN THAT CASE WILL HAVE TO AND THEN IN CITIES WHERE WE CAN TEST AN APPROACH WE HAVE GREAT MERCHANTS HERE IN SAN FRANCISCO BUT THE CITY IS ALSO DOING A GOOD JOB AT KEEPING CARS OUT OF PARTS OF THE CITY, THERE IS A GREAT ONE ON MARKET STREET IT’S NOT EASY TO ACCESS WITH A CAR FOR EXAMPLE, SERVE GOOD WORK AS A COMPONENT OF THE MERCHANT WOULD INTERACT LOADED WITH GOODS ANSWER WOULD DRIVE A FEW BLOCKS OF MARKET STREET WHERE THAN POST MATES CAN TAKE THE GOODS AND DISTRIBUTE THEM. MAYBE THAT SOUNDS A LITTLE TOO FUTURISTIC FOR PREPARED FOOD BUT WE JUST ANNOUNCED A PARTNERSHIP WITH WALGREENS FOR EXAMPLE SO CITIES THAT FIT THESE CRITERIA ARE INTERESTING TO US.>>SERVE HAS GONE THROUGH A NUMBER OF ITERATIONS AT SOME POINT YOU GUYS MADE IT LOOK KIND OF HUMANLIKE, YOU ADDED EYES AND MADE AS A PEOPLE I’M ASSUMING CAN EMPATHIZE WITH IT INSTEAD OF TAKING IT OVER AND LEAVING IT THERE, WHAT IS THE THINKING BEHIND THAT? >>THE EYES ARE ACTUALLY VERY IMPORTANT WE HAVE A GREAT APPLE ENGINEER WORKING ON SOME OF THE INTERACTIONS BECAUSE WHEN YOU PUT SOMETHING OUT IN THE REAL WORLD I THINK INTERACTION DESIGN GETS OVERLOOKED QUICKLY, WE WANTED SERVE TO BE SOMETHING PEOPLE ARE CURIOUS ABOUT IT HAS THE HEIGHT OF AROUND A PERSON THAT IS EIGHT YEARS OLD WHICH IS WHERE WE LOOK SO IT IS NOT TOO LOW ON THE GROUND IT DOES NOT LOOK LIKE A RODENT IT HAS SOCIAL NAVIGATION IT OPERATES VERY SMOOTHLY, IT DOES NOT ACCELERATE FAST, IT DOES NOT STOP, IT’S NOT VERY DINKY IT JUST GOES WITH THE FLOW. THE IMPRESSIONS IN THE FACE IS JUST A GREAT WAY TO START IT CAN INDICATE WHERE IT WANTS TO GO, IT WILL LOOK AT YOU AND WE ARE NOW WORKING ON IT WILL BLINK A BIT THIS ALL SOUNDS LIKE TOYS AND A LOT OF THE INSPIRATION COMES FROM TOYS, THERE WAS AN AMAZING COMPANY THAT’S DID GREAT LITTLE ROBOTS THAT HAD THESE IMPRESSIONS AS TOYS FOR KIDS AND OBVIOUSLY YOU SEE IT IN MOVIES, WE JUST WANTED TO CREATE SOMETHING THAT GIVES YOU A GREAT FEELING WHEN YOU INTERACT WITH IT. >>YOU SAID AT SOME POINT THESE ROBOTS MIGHT BE ABLE TO PATROL NEIGHBORHOODS. WHAT IS YOUR LONG-TERM VISION FOR POST MATES SERVE? >>THE PARKING TICKET THING I THINK WAS A STUPID IDEA BUT THEY COULD DO THAT VERY EFFICIENTLY, THEN AGAIN WE HAVE THESE BEAUTIFUL INTERCEPTORS IN SAN FRANCISCO AND THEY ARE JUST SO FUNNY TO LOOK AT SO WE LEAVE IT TO THEM BUT THE IDEA IS REALLY WHAT WE WANTS TO CREATE IS A PLATFORM THAT WE HOPEFULLY CAN OPEN SOURCE AND ALLOWS EVERYONE TO PARTICIPATE AND BUILD STUFF UPON. MY DREAM WOULD BE HAVE IT AS AN OPEN SOURCE PLATFORM, IMAGINE BEING A DEVELOPER AND YOU CAN JUST HAVE YOUR ROBOT RUN ON A PLAT AND YOU CAN CONTRIBUTE TO IT, HOPEFULLY WE CAN DO A LOT OF GOOD THINGS WITH IT NOT JUST DELIVERING YOUR PIZZA.>>WE ARE OUT OF TIME, HOW ABOUT YOU BLINK TWICE IF YOU ARE GOING TO IPO IN 2019.>>DELIGHTS ARE VERY BRIGHT. I HAVE HAD A GREAT TIME WITH YOU GUYS, THANK YOU.>>THANK YOU SO MUCH. >>>WE’RE GETTING TOWARDS THE END, OBVIOUSLY, AND I KNOW YOU’RE EXCITED TO FIGURE OUT WHO WON THE BATTLEFIELD. NOW, IT’S MY TIME TO TALK TO YOU A LITTLE BIT ABOUT EVERYTHING THAT GOES INTO PUTTING TOGETHER DISRUPT. I GET A LOT OF THANK YOUS AND I DON’T DO ALMOST ANYTHING. I JUST KIND OF STAND UP HERE AND MAKE STUPID JOKES AND LET YOU GUYS LAUGH AT ME. THERE ARE PEOPLE WHO WORK ROUND THE CLOCK ALL YEAR TO MAKE SURE THIS HAPPENS. AND I WAS HOPING I COULD TELL YOU A LITTLE BIT ABOUT THEM AND IF WE COULD CLAP FOR THEM IF YOU GUYS ARE COOL WITH THEM. I HAVE TO THANK RICHARD SMITH. HE’S THE RIGHT BRAIN TO MY LEFT BRAIN. HE DEALS WITH A LOT OF FROM ME, AND JOEY AND NED HANDLING THE BUSINESS AND EMMA AND HER EVENTS TEAM, THEY DO EVERYTHING TO PUT THIS TOGETHER. AND NISHA OUR BATTLEFIELD COMPANY KNOWS WHO SHE IS. SHE SPENDS A LOT OF TIME HELPING TRAIN AND PREP AND GET EVERYTHING. >>DAVID, EMILY AND JANELLE AND THE WHOLE PRODUCTION TEAM, THE AV AND SPEAKERS AND JUDGES WHO TOOK TIME OUT OF THEIR BUSY SCHEDULES TO TEACH US ALL SOMETHING, AND I HOPE EVERYONE LEARNED SOMETHING FROM THEM, BECAUSE I KNOW I DID. >>THE EDITORIAL TEAM AT TECH CRUMPLE WHO COMES TO MANAGE THE EVENT AND MONITOR THE EVENT, THEY RUN AROUND CRAZY GUYS, YOU GUYS AND YOU SHOWED UP AND WE APPRECIATE IT. THIS IS MY GOODBYE, IT’S BEEN MY PRIVILEGE AND PLEASURE TO BE YOUR HOST. WE HOPE YOU COME BACK. I’LL PASS IT OFF TO MY BOSS, DESMOND. >>>LADIES AND GENTLEMEN, WELCOME NED DESMOND [ MUSIC ] >>>HELLO EVERYONE. WE’RE GOING TO GET TONIGHT PRIZE IN JUST A COUPLE OF MINUTES, WE HAVE A COUPLE OF THINGS TO TAKE CARE OF. IF YOU WERE HERE AT THE BEGINNING OF THE SHOW, I ANNOUNCED THE CUSTOM DISRUPTER AWARDS, WE SPONSORED CUSTOM DISRUPTER AWARDS AND BRING THEM ON STAGE TO ANNOUNCE WHO WON THOSE PRIZES, MAGNA AND THE DIRECTOR OF INNOVATION ADVENTURES, MAGNA, WELCOME HIM TO THE STAGE. >>HELLO, MY NAME IS JOSH BURG. AT OUR COMPANY WE LOOK TO PARTNER AND INVEST IN STARTUP COMPANIES AROUND THE GROUP THAT ARE LOOKING TO DISRUPT THE FUTURE OF THE AUTOMOBILE AND THE FUTURE OF THE AUTOMOTIVE INDUSTRY. ANY ONE OF US CAN WATCH OUTSIDE AND WE UNDERSTAND THAT MOBILITY IS RIPE FOR DISRUPTION. WHAT YOU MAY NOT UNDERSTAND IF YOU’RE A STARTUP PLAYING IN THIS SPACE YOU’VE COME TO LEARN QUICKLY, OUGHT PO ACTIVE INDUSTRY IS DIFFICULT. IT’S A TOUGH PLACE TO BREAK INTO IT, THERE’S A ECONOMICS WEB OF REGULATIONS, SAFETY, SECURITY AND PRIVACY AND THERE’S IMMENSE MANUFACTURING AND ENGINEERING CHALLENGES. THAT’S WHERE MAGNA COMES INTO PLAY. WE’RE ONE OF THE LARGEST AUTOMOTIVE SUPPLIERS, WE DESIGN, MANUFACTURE AUTOMOTIVE COMPONENTS IN 378 COUNTRIES WITH GLOBAL MANUFACTURING FACILITIES. WE UNDERSTAND RECALL UPDATE HE MOTIVE. WE BUILD VEHICLES END TO END FOR THE WORLD’S AUTOMOBILE MAKERS. COME TALK TO MAGN A AND WE CAN DIPS RAPT THE SPACE. I WOULD LIKE TO A INNOCENCE THE AWARD. THE WINNER IS KINGS DISTRICTED SYSTEMS. I’M SO EXCITED ABOUT THIS COMPANY. ABSOLUTELY, CLAP. WHAT THEY’VE DONE, THEY BUILT A DISTRIBUTED PROTOCOL. AND REALLY WHAT THAT IS, IT’S A PLATFORM THAT ALLOWS US TO UNLOCK THE UNDERUTILIZED CAPACITY OF DEVICES THAT WE USE EVERY DAY. THINGS LIKE THE CELL PHONES AND LAPTOPS, WITH THE PROLIFERATION OF SMART SENSORS AND VEHICLES ON THE ROADS, THERE’S AN IMMENSE OPPORTUNITY HERE, WE’LL SEE KDS, I’M EXCITED ABOUT THIS AWARD. THEY GET A $10,000 FROM MAGNA ADVENTURES AND AN OPPORTUNITY TO COLLABORATE WITH US AND OUR ENGINEERS. THANKS TECH CRUNCH AND CONGRATS. >>>THANKS, JOSH AND, PLEASE WELCOME TO THE STAGE, PROFIT COACH JAMES IT. OLLEN. >>>PROFIT DOT CO IS A PLATFORM BASED IN FREEMONT CALIFORNIA. WE BELIEVE THE INDUSTRY LEADING OUR PLATFORM, FOR THE FIRST TIME WE ARE USING TEMPLATES TO CREATE YOUR KEY RESULTS, BASED ON BEST PRACTICES FROM THE LEADING LOGOS OVER THE DECADES. IF YOU’VE USED US AND FAILED, TALK TO US, WE FEEL YOUR PAIN AND KNOW WHAT IT’S LIKE. WE CREATED THIS PLATFORM BECAUSE OF THE FRUSTRATIONS WE’VE FOUND IN THE INDUSTRY WRESTLING WITH THE COMPLEXITIES OF OKRS AND IT’S A SIMPLE IDEA THAT WITH THE RIGHT TOOL, IT CAN DIRECTLY AFFECT YOUR BOTTOM LINE AND JUST ABOUT EVERYTHING ELSE THAT PAINS NEW THIS FAST MOVING WORLD. >>>WE RAN A COMPETITION, BUSINESS OPERATE COMPETITION, WE ASKED YOUNG FOUNDERS TO SUBMIT THEIR BUSINESS PLANS USING OBJECTIONS AND KEY RESULTS. AND SPEAKING DIRECTLY TO THE ALIGNMENTS OF THE KPIS AND BENCH MARKS. WE GOT A LOT OF GREAT, GREAT SUBMISSIONS, IT WAS NOT EASY. HAHN AND I, THIS IS HAHN, BY THE WAY. WE JUST MET BACK THERE, WE’RE A LITTLE BIT, WE’RE A LITTLE MISTY. IT WAS VERY DIFFICULT. IT WAS VERY DIFFICULT. WITHOUT FURTHER ADO I WILL ANNOUNCE THAT CARLOS CASTANIDAS FROM Y SPOT IS THIS YEAR’S WINNER. THERE HE IS RIGHT THERE. CARLOS, YOU CAN’T COME UP, WE’LL MEET YOU BACKSTAGE AND WE’LL HAVE PAPERWORK TO SIGN, AND ALL THAT. CONGRATULATIONS, THANKS VERY MUCH. WE HOPE YOU HAD A GREAT DISRUPT THIS YEAR AND WE’LL SEE YOU NICKS YEAR. >>THANKS JAMES, THANKS HAHN. >>THIS SHOW HAS BEEN FABULOUS AND THE BIG REASON THAT IT HAS BEEN IS BECAUSE OF THE SPONSORS THAT SUPPORT THAT. I WOULD LIKE TO READ THEM ALL OUT, THEIR NAMES AND WE CAN FEEL THE GLOW OF 9 THINGS THAT MADE POSSIBLE FOR THE SHOW. AT THE PLATINUM, AWS. >>GEM MY MAN, BUMBLE, DELL FOR ENTREPRENEURS, MAGNA, TOM TOM, UNITED AIRLINES, VERIZON 5G AND VERIZON VENTURES. AT THE SILVER LEVEL, WE HAVE BREAKS AND CAN HE CO, MICROSOFT FOR STARTUPS, MIT ENTERPRISE FORUM, STARKY, RAPID EYE AND STARTUP STADIUM AND BRONZE, AGORA AND AMERICAN SEED FUND, AND BOEING HORIZON X, DELIGHT, GINKO HERMANA, AND LOCKHEED, SNAP, SPOT IM, SPOT HERO, AND PARTUP TERRACE AND THINK 3. AND TO CHECK OUT, ALL IN MOBILE, AMB SOFTWARE, BAY AREA, AND CANVASY, CODE AHEAD, CODE QUEST, CODEETTE AND D HOSTING, ECONOMIC DEVELOPMENT AUTHORITY OF WESTERN NEVADA. HOT TAILERS, IC SOLUTIONS AND ITFS, JUST WORKS, LEVITATE TECHNOLOGIES, LOOK FOR APP, OTTER IA, KEEP I CAN’T, STACK TREK, STANFORD UNIVERSITY, TEAM SOFT, TRAY DOVE, UNITED KINGDOM, URUGUAY, 21, UVIFY, VERB RATE, AND SIDADA, AND F50s, GIRLS IN TECH, LIGHTOUT, PLEDGE 1%, SKY DECK, SOCK CLUB, START UP COIL, HIGHER TECH LADIES, TECH STARS AND WOMEN OF WEARABLE. >>>AND DEV POST WHO DOES A FABULOUS FOR HACKATHON. LET’S HAVE A BIG HAND FOR ALL OF THOSE SPONSORS. THANK YOU. >>>LET’S WELCOME, THE EDITOR- IN-CHIEF OF TECH CRUNCH, MATTHEW PANZARINO AND THE DIRECTOR OF OUR PROGRAM AND NISHA TAMBE FOR THE FINAL ACT OF THE SHOW. >>>THANK YOU, NED FOR THE AMAZING SPONSOR READS. IT’S OUR JOB, WHAT’S OUR JOB IN IT’S BEEN A WONDERFUL SHOW, THIS PERIOD OF THE SHOW IS INTERESTING FOR US, BECAUSE IT’S BEEN A RUN UP. THE ADRENELIN IS FLOWING AND IT’S ABOUT TO BE OVER. WE THANK YOU FOR BEING HERE THIS PARTICULAR PERIOD. WE’RE HAPPY TO SEE A FULL HOUSE FOR THE ANNOUNCEMENT OF THE BATTLEFIELD WINNER, HOW DO YOU FEEL ABOUT THE BATCH THIS YEAR. >>IT WAS INCREDIBLE FROM WILDFIRE PREDEMOCRATIC ACTIVE MODELS, APPS, ROBOTS SATELLITES AND ROCKET LAUNCHERS, IT’S BEEN DIVERSE AND AN INTERESTING BATTLEFIELD. >>GOOD JOB. >>I ASK YOU TO TALK ABOUT HOW GOOD THE BATCH WAS, UP PUT IT TOGETHER, I’M SURE THAT FEELS AWKWARD. GIVE HER A HAND [ APPLAUSE ] >>IT’S REALLY A PRIVILEGE TO BE ABLE TO FIND THESE DIAMONDS IN THE ROUGH AND POLISH THEM UP. ALL OF THESE FOUNDERS HAVE PUT A BIG EFFORT IF FOUNDING THEIR COMPANY. LET’S GIVE A ROUND OF APPLAUSE TO ALL OF THE FOUNDERS YOU SAW ON STAGE. >>ALL RIGHT, WITHOUT FURTHER ADO, WE’RE HERE TO ANNOUNCE THE WINNER AND RUNNER UP OF THE STARTUP FOR BRANDING PURPOSES, THE DIPS RAPT STARTUP FOR 2019. THE RUNNER UP IS OMNIVIZ. >>COME DON ON DOWN [ MUSIC ] >>CONGRATULATIONS, HERE’S A BOTTLE OF CHAMPAGNE FOR YOU. CONGRATULATIONS WONDERFUL JOB. >>>ALL RIGHT, ALL RIGHT. LET’S GET A QUICK PICTURE. THANK YOU. >>>OKAY AND ARE YOU READY, DO YOU WANT TO DO THE HONORS. >>WILL DO. THE TECH CRUNCH STARTUP BATTLEFIELD WINNER FOR 2019 IS: RENDER. GIVE HIM A ROUND OF APPLAUSE. >>COME ON UP. RENDER. [ MUSIC ] >>>THANK YOU ALL VERY MUCH, WE’LL SEE YOU AGAIN NEXT YEAR R THAT’S A WRAP. >>IF I COULD HAVE ALL OF THE BATTLEFIELD TEAMS COME UP FOR A GROUP PHOTO. ALL OF THE BATTLEFIELD TEAMS COME ON UP TO THE STAGE. [ MUSIC ]

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