Valley darling that has made Elizabeth Holmes the youngest female billionaire. The wall street journal reported her company tests are unreliable. She released a statement joining me now dr. Joel, i want to start with you because you know about blood drawing and blood testing more than anybody in the country. This report alleges not only is the technology unreliable, they may not be a use it on a large scale. Was your reaction to this . What is your reaction to this . No one knows. Theranos has never made their data public. They have not gone through a pure review process. Senior doctors and biotech scientists have been paying attention for a long time because their claims sounded too good to be true. I have been asking for years for their data. They dont play by the rules of science or medicine. They are not transparent. Emily what do you make of the technology they claim to have whereby you draw a fingerprint amount of blood and can run a number of different tests on it . Is that possible and is that possible on a broad scale . Guest a finger pricked amount of blood, does that mean their claim, it stretches credibility. Emily caroline, you have been talking to partners. This is a company that has approval from the fda for at least one of its tests. They have partnerships with walgreens and others. What have they been saying . Caroline we have a mixed responses we have mixed responses. Walgreens, who is a major partner for theranos, they said they would defer to theranos for comments on the accuracy of their test. Capital blue cross, who is an insurer, said so far they have not had any complaints from patients or doctors. Cleveland clinic has declined to comment for the meantime. Emily i did speak with Elizabeth Holmes last week at the vanity fair summit. I said, look, if your technology is so amazing why isnt this everywhere, why arent my doctors ordering this for me . For us it is making sure we build a solid foundation. Too Many Companies have grown too fast. If the space you can afford to grow too fast as the stakes are too high. We think about it person by person, city by city, building on the framework and building upon it so we can ensure the tech ensure the integrity of the service. Emily we did reach out to elizabeth and theranos today. She didnt respond but she did tweet out. This is a company that has partnerships with leading hospitals, has a nine billion dollar 9 billion valuation. There must be something there, right . Guest who knows . Nobody has seen their instrument, of which there is one in palo alto. Nobody has seen their technology, nobody has seen their data. Emily why do you say it stretches the credibility . Why the you think their claims cant possibly be credible . Guest the minimum amount of blood you need to do the most simple tests, for example a finger stick glucose, is five microliters. That is a very small amount of blood to do one test. To think you are going to be able to do will then to do many tests on the amount of blood you get from a finger stick, the numbers dont work out. Theranos says they have to dilute their sample to get an adequate volume. As an article in the wall street journal points out, once you start diluting specimens, you start introducing errors. Emily if the numbers just dont work out, why is walgreens partnering with them . Why are all of these former secretaries of state on board with this company . Caroline we have to wonder what theranos has shown their partners. They havent published a lot of public data at this point. Thats not for all of their provided tests. They had to show us something for that particular test. I think it will become stronger for theranos to reveal more about how their technology works. Emily im curious, you said you have never seen the technology. Have you spoken with doctors who have reviewed the technology . Guest within the industry the consensus is this is too good to be true, and it is not for real. I would say theranoss credibility, based on the feedback i have gotten, from thought leaders in biotech, is it is just a matter of time until people realize that eranot not what they represent. Emily what about this approval from the fda for at least one test . Guest that is a good point. The one test they got approved was a test for herpes simplex antibodies. This is a semi quantitative test, which means a yes no test. A test for herpes simplex is a test that is almost never ordered. It is surprising to me why they would even take this test through. The fact they got approved for a semi quantitative test you can do on a drop of blood is basically a technology that has been around since 1916. Emily last question, this is a company that Elizabeth Holmes and theranos, they claim the bad press around them is being seated. Seeded. Is there any truth to that . Caroline we dont know whether or not that is a true statement. She is setting herself up as a david to the goliath she is saying we are going to end this industry. Industry. His the test they offers is really a large discounts to what is available on the market. They are even cheaper than medicare prices. Certainly they have been setting themselves up as the challenger to the traditional companies, and that is very much on the industry side. Emily thank you for joining us. Good to hear your perspective. As we told jeff the top of the show, Advanced Micro Devices the chipmaker says it lost . 17 per share, coming in short of analyst estimates. As part of the earnings release, amd will take a restructuring charge me also announcing a joint venture with a chinese chipmaker, saying it is expected to reduce capital cost. Amd is hoping to drive a record surge of activity in the industry. It Semi Conductor makers has announced 76 billion in acquisitions. Semi conductors looking for a buyer. Analog devices and massive integrated products are in talks. And sandisk is exploring a sale. A former facebook cto and google maps developer brent taylor joins us with his latest. Tesla rolls out software to keep cars on the road. Emily Venture Capital investments ballooned in a Third Quarter not seen since the. Com bubble. Funding in the first few months of 2015 surpassed the year. So far that is not stopping investors. The enterprise startup investor quip announced funding from they are aimed at taking down microsoft office. Joining me now to discuss, bret taylor and john lilly, partner at greylock, john you are joining the board creative john, lets talk about funding first. You still have a lot of your series a in the bank. He said he dont even really need this money. Why now are you hedging against the potential belt tightening in the future . John you dont have to raise money in Unfavorable Market conditions. The biggest thing is confidence in our growth. Right now we are in this interesting time where the concept of the old productivity actually a word processor and becomes left that becomes less relevant. When was the last time you open a word processor to write a memo . The workplace has moved beyond these old tools and we feel like this is an opportunity we really want to invest in and grow more assertively that represents this new way of working and move to more and more companies. Emily i want to get your thoughts on the overall funding environment. Do you feel like your belt is going to tighten soon . John we have google and amazon. Not every investment makes sense. I would like to think our money is not exactly crazy. I think there are Iconic Companies that will come out of this. Emily you told us to think about it as a word plus excel. You have competitors with deep pockets. What makes you think that you can survive in an environment where we are seeing some of these enterprise startups struggle . Brett i will and your first question first. We talked to i. T. Departments, they are actually seeking out new tools. I think they are seeing their workplaces becoming more mobile, more social, and the tools they are using havent kept up with these new ways of working. You dont need to go back to email to talk about what you are writing. The types of documents people are making on the same documents people were making before. A checklist to track a launch and there are these really dynamic interactive Product Management tools that people are building inside this new form of document. That is the biggest thing, technology destruction. You are taking a completely new approach that is relevant to the tools people are using today. John i think you are changing the way people do productivity work, whether it is on the run or on the go. That feels like it is something people are going to pay for for a long time. Emily Companies Like evernote and dropbox have been getting pummeled lately. There are concerns there is not a strong Business Model there. I want to hear from you because there was a lot of confusion surrounding the company. If we are confused, clarify it for us. How well is dropbox doing . John when you say they are getting pummeled, you cant see it in the numbers. I think i box is doing just fine. I dont know however notes numbers are doing. How evernote s numbers are doing. Emily look at of learnings are you taking from some of these other enterprise soft where what kind of learnings are you taken from these other Enterprise Software companies . Brett Consumer Companies going after individuals and enterprise copies that sell directly into i. T. Departments, we are trying to represent a product that is consumer friendly. And people love to use it. You see the evolution of Companies Like dropbox, who sort of started in one place and gradually transitioning into another. We wanted to learn from their lessons. We wanted to sell directly into larger companies. Emily my job is to separate reel from imaginary unicorns. Given that these are private companies, how are we supposed to gauge . John what i would tell you is dropbox is doing fine. It all comes down eventually. We will see. Emily we are seeing with a square. We will talk about that more after the break. John lilly of greylock and bret taylor of quip. Tesla has begun rolling out a Software Update for some of its sedans that puts the car in charge. The update includes features like automatic lane changing, self parking, some model owners of model s car will have their software automatically updated over the next several days. Tesla is being cautious about the rollout and says their customer should still keep hands on the wheel at all times. Jack dorsey costs sizable stake in square and what it means for shareholders of the company. We will discuss next. Emily the daily fantasy football world hasnt had a great month. There was an news that a draft kings employee one 350,000 from a rival site. Now allegations of predatory tactics using the intentional use of insider information. The fbi contacted prominent fantasy football players, and the investigation is focusing on draft king. Despite the controversy, the two company saw their biggest weekend ever, amounting to 45 million in entry fees. To mobile Payment Company square. Square filed with an initial size of 275 million. Jack dorsey, pulling double duty, will have to drug will have to juggle the roadshow. What we didnt know was his huge stake in square. Dorsey is the largest shareholder by a wide margin. The investment firms second largest with 7. 3 . With 17. 3 . Joining us now is sarah friers. And bret taylor, also john lilly of greylock. Many founders find it difficult to raise money and build confidence without giving up a lot of their company. Jack dorsey was able to do it. Is he in a unique position because he had success with twitter . Sera absolutely. When you come in and have the confidence of having done something before, you can do a lot of things that Venture Capital finds it hard to do the first time. You can get companies to get on board to work with you. He really didnt have to give up as much of his stake. We have seen when his company went. Emily Mark Zuckerberg was the master of this. He had founded a Major Company before. What sort of learnings have you taken from him as you try to bring in investors like john, but also maintaining your control . Brett a lot of things have changed for entrepreneurs. If you look at google and the pressure to bring on an outside ceo, the evolution to facebook where mark not only have a lot of equity that control the board in a unique as unique way, it has become more on under friendly. Im not sure john would agree. Especially for repeat entrepreneurs, the conversations have changed. The default have changed. The assumptions about what the terms will be have shifted. I think mark played a big part of it. Most of because it is such a visible company. People look at that as the model of what they want to do. The terms i were offered were very different than this time around. I definitely experience it firsthand. Emily you as an investor have to protect yourself. How do you balance all of that . We found that some investors were guaranteed a 20 return in the square ipo. The ratchet just seems unusual. John i think this is a good development. I think founders acting like owners to the ipo and beyond is excellent. My partner was north of 20 of ipo. He always acts like an owner. You want somebody who really feels personal ownership. Emily i have reid hoffman on my list. How do you advise in this environment, how do you advise us of coming on spinners about how they build their companies and how they relate to investors . Brett they value the focus on valuation and percentage is a mistake. You should really be seeking out a partner. I am a product centric person, an engineer at heart. I am looking for someone who will help navigate hiring a Business Leader or how to speak to customers. You should know your flaws and seek out investors that will complement your skill set. If you think about holistic outcome of the company, the most likely outcome is your company will become a business. If you dont care whether it is 15 or 20 . Emily thank you both so much for joining us and sarah friers liberty news. That does it for us. Tomorrow we will have sequoia capitals chairman. Very excited to speak with him. Announcer the following is a paid presentation for the wen healthy hair care system brought to you by guthy renker. Announcer whats got these crowds so excited . Its the hottest trend in hair. It started in hollywood and spread all over the world. Millions of people are throwing out their shampoo and have started using wen, getting the healthiest hair of their life. 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