Transcripts For CSPAN Technology And Innovation 20150218

To help you with the political war. You put it differently, you said its a campaign that you are running. Is bringing him on part of this creating a kinder, gentler he does not start until the end of september. He was obamas 2008 Campaign Manager and he was an advisor sort of in between the campaign and the white house in 2012. He is a pretty incredible guy. But the context is we view where we are at as there is a Political Campaign that is happening. We did not really realize it but there is a Political Campaign that is happening and uber was the candidate. The opposition was the taxi cartel. They were the opponent. Maybe there are some primaries going on that some other folks in the ridesharing space, etc. But the big opponent was the taxi cartel. They have been giving political donations for dozens of years, tens of years, decades. They have been lobbying folks for those same decades. Bayonne local politicians. They have created a monopoly in every single city for taxis. The causes problems who want to get around the city efficiently, and causes problems for creating jobs. It is not only that riders have no options, the drivers get stuck because there are no opportunities for jobs. In a situation like new york where a driver leases a car for 40,000 per year. That is the taxi. Its 40,000 per year. Instead, it is just a taxi. And for that, for that privilege of leasing that car for 40 grand per year, he gets to be impoverished. And thats because he did not have options. And people cannot get rides. And that medallion, the license to own and operate a sealed taxi, is worth a million dollars. Why . Because of the artificial scarcity. There are 13,000 taxis in new york. There were 13,000 in new york in the early 1950s. So does he go in and grease the wheel, bribe people, or is he a hammer, you are going to do this because i know people . How does he get stuff done . The way to think about it, he is the uber Campaign Manager. So that means policy communications, branding, and strategy. And which of those four are you inserting cash . You will go to a city and say, look, you guys have the wrong policy. For instance, miami, if you call to get a town car, there is a law there that says if that car comes in 15 minutes, you have to wait 45 minutes more before you are a legally allowed to enter the vehicle. If you enter before an hour has passed, that driver can be arrested. Thats not good. So youre trying to fix that. When you say you want to fix that and meet with the City Council Person or meet with the deputy mayor or something, they literally say, there is no meeting unless you go through this guy. And this guy is a lobbyist. And that is where the cash is inserted. In the big scheme of things it is a dirty business. Its terrible. Im glad you hired a professional to take care of that for you. How much of uber do you personally own at this point . I own a lot. More than 50 personally . I dont think its appropriate to talk about that here. You think its inappropriate, on a stage, a site where it is known for breaking news about peoples net worth. Yes, we can talk about it later. When you introduce yourself do you say im a billionaire, or is it still paper for you . Thats kind of funny. I think a lot of people who know me know that im pretty much the same today as when i was i know you, and you are the same. So you know the answer to that question. So you just yeah. [laughter] are those taxi socks . You used to be one of the poorest rich people buy new, if that makes sense. What does that mean . I think you had made a million dollars, but you immediately invested into new startups. Now you are worth some number of billions of dollars, i think. I just kind of want to see a little bit of arrogance or something that i can make fun of. But im not really getting at. Um, ill work on that. All right, so two days ago i was in palo alto and i called for an uber and the uber came. On its way i get a call from the driver who says, were you going. Us a couple miles. He hung up and canceled the route. Son of a bitch. So first of all, i assume he has been fired now, right. For my point of view, the thing i liked about uber back in the day as i would never have that kind of shit pulled on me. Uber changed all of that. Are you changing so fast that some of the old taxi problems are coming into the system . I mean, look, if you were to wave down a taxi in manhattan and say im going to brooklyn, hes going to say hell no. And thats normal. And there is nobody to complain to. Yeah. In the uber model, we are not perfect, but we really strive to be. So when that thing happens, we encourage the feedback. And folks who do this, drivers the partners who are doing this, they do not last in the system. So it is against the rules to engage in old taxilike behavior. Of course. But this is the tricky balance of this kind of business, right, is we have two sets of customers. There is the riders, but there is the drivers, too, and any policy that we have cancellation policies, minimum fares, things like this, in many cases it is good for one side and bad for the other. So you do something good for the riders and then the drivers are upset. You do something good for the drivers and in the riders are upset. Finding that principal balance is quite tricky, and its why anytime there is a little policy tweak that we do, it kind of makes news and somebody is upset. But we really try to find that principal middle ground. Its the right thing to do to take feedback from riders when there is a trip that did not quite meet expectations or meet standards. And ultimately, folks who are not meeting those standards should not be on the system because then you cannot offer highquality service. But there is also a driver constituency that you have to be mindful of. Im not saying in this case that hates that line, but that is part of the nuance of our business. You have been trained, son. I have not. You are smooth all of a sudden. Thats not true. Before you would have been, he is fired. My team wishes i have taken training. Have you seen some of the things ive said . Yes, i have. [laughter] i had oatmeal this morning, so im a little calmer. Ok, im glad. A nice, balanced breakfast is a good way to start the day. Yep. How many drivers does uber have now . We are in the hundreds of thousands. There are hundreds of thousands of partners connected to our system, right. How many are you bringing on every month . We are in the many tens of thousands. So like right now, you know, we are in the neck of the woods of about 50,000 new jobs a month being created. And from any deactivate every month for poor performance . I dont have that number right now, but there are some number. You have a computer, lyft which is annoying because you have to sit in the front and talk and they have these mustache things. I have not used to, but i have heard some people apparently half. They seem to be constantly whining that you are beating them, that you are trying to take their drivers by offering them incentives. I dont hear a lot about their business, but i hear a lot of whining. So my question is, would you consider buying them just to shut them up . [laughter] that is a valid m a strategy isnt it . Just please shut up and we will buy you . This is an interesting question. I like to use i like to take the political analogy a little further and say of course the opponent as the taxi cartel, but there is a primary race going on right now and there are some scrapping that happens in the primary race. I think thats part of it. In terms of m a and how uber thinks about it, we have not acquired a single company. We sort of are just really focused on the product, building the business. We are in a couple hundred cities, 45 countries, and we are proud of that. We are proud of doing that in the timeframe weve done it. We have not spent time on the m a side of things. That was approaching an answer. Thats fine. How did i not approach it . I said would you buy them to shut them up. He said we have not bought companies, thats not the way we think about a full stop indirectly, you got there. We are not in acquisition mode right now. Talk about the city bus. The pool. The uber pool. So you drive a bunch of people and make it much of stops and somehow this is not a city bus. I dont get why that works and why anybody would use it. Here is the idea. The idea is that you push a button, the car picks you up just like normal. Ok. And while you are on your way to your destination, somebody else is going along the same route at the same time. And with less then lets call it two minutes or less deviation from your route, you pick some of the else up along the way. And they get in my car with me. Thats correct. And what happens then this sounds a lot like a bus so far. Understood. The difference is a bus, you go to a corner a halfmile away from you when you wait 15 minutes and sometimes its on time and sometimes its not. This comes just like the uber that you know. You push the button and its there exactly when you need it and where you want it. That is the uber magic. What happens is you are still getting the benefit of the bus you are still getting the benefit of carpooling by literally taking cars off the road. There is significant efficiencies in doing this right. It seems like to make this work i know you just started, but to make this work you have to have a massive number of users for the Network Effect to kick in and make this viable. Otherwise it seems like a would not work at all. So if we were just starting out in a particular city, and we are launching all the time, you cannot do it. There has to be a large number of people going from basically having routes that overlay each other at the same time, and you cannot do it in small cities where you are not big. But if you are big, you can start to make that work. And i think one part is liquidity. The other part is product. The product has to be just right, because there is a lot that can go wrong, especially if they are the second user from putting the button to making this all work. So do you think you have enough liquidity, as you call it, to make this work in San Francisco, new york . I think we do. I think it is right on the edge of liquidity to make it work at scale. So lyft and others are doing copycat products. You are saying they are not going to be able to make this work because they are so much smaller . Maybe this is a little bit of a hat tip, but i dont think that lyft copycat at this feature. I think that companies are often working on features at the same time and roll them out. But at the end of the day, liquidity is going to matter on this and its going to you have to be very, very large to make it work. At least thats our sense of things. All right, we will see how that goes. I refuse to use that service personally. Fair enough. We are seeing good pickup. But fair enough. I cannot wait to do an uber pool and see you in the car and say gotcha. I dont want to do this thing where im stuck on a was with unwashed masses. I dont want to go out of my way to pick up yet another person. I want to go where i want to go. There is such an idea where they drop you off i cannot wait to see you on the uber pool. Then im the only person in the car and some of you could come in. You could literally have a perpetual ride for the driver. What is interesting about that you think about the driver income side of this, utilizing that car and getting the income, and also how that affects prices and really helps bring them down. Its a big deal. Our whole thing is about bringing the cost of taking an uber below the cost of owning a car. And right now we are which the Car Manufacturers must love you talking about that. If you have the taxis want you dead and some of them seem like they might hire someone to hurt you and you have the ankle biters who are you not fighting with . Who am i not fighting with the nature of this business is that it is so disruptive, so insanely disruptive that there are a lot of incumbent in a lot of places that we have to persuade to come to the other side. So the answer is, almost no one. Tell me about the wins. It seems you have won all the battles. We are starting to see the things from the u. S. In europe and we are working through it. We still have a decent assist from the city of San Francisco from october 2010 but there was a law passed three weeks ago in california that reaffirmed with the Public Utility Commission already said 1. 5 years ago or more you feel good about california . Colorado, new york, ec, any trouble spots . We are not in vegas, there are a few cities like that in vegas is a good example. And europe is a train wreck you are sledging through that . Our business is growing pretty good clip, faster than the u. S. But in germany you ignored the van and drove in hugely but are you subject to 250,000 euro per drive penalties . There was a case in hamburg and the court decided we were breaking some rule and that case got suspended and even and then there was another case in frankfurt which said we are charging too much. I thought too little . They will get you one way or another and we said, just tell us what the prices and they wont tell us what the price should the be. And that is on appeal right now. In china things are going well . In china we are in five cities and beijing is the fastest city it is either number two or number one, the fastest growth from a city at its age. You said beijing has 70,000 cabs. Thats right. And new york . 13,000. Orders of magnitude larger. I think a lot of folks in america dont know all the stuff going on in were in north asia and south asia. Middle east there is a lot of interesting stuff in china specifically. 70,000 drivers in shanghai and 200 cities in china that are over one million people. There is a lot going on there, two big Taxi Companies or taxi apps, that are in and allout war an allout war, one partnered with alibaba hundreds of millions of dollars being subsidized on each side for these Respective Companies to grow and when, so there is this a chinese war going on. That makes me think, stay away from that market. Two huge players with half 1 billion being subsidized and then you come in how do you win . What is really fun and awesome about china for us and me specifically is we get to be the little guy. For me that is like homecoming. We can see what happened and for me why not try . Yes, i think you are right there are a lot of challenges but how much fun is it to try and see and if you can persevere and make that work, that is really awesome. So, lets get down and dirty how will you make that work . I think they got a little bit of a head start, these subsidies, they are giving rides away for free and in exchange creating payments account payment accounts. So if youre smaller if kwa dee is smaller they will be subsidies and will be more expensive for the intercompany to retain market share in that world. There was a lot of interesting economic and competitive things going on and when you are the small guy, there are a lot of things a small guy can do that a guy you are a small guy in the sense that you arrive at your vague date balance sheet, how much is earmarked to fighting the price war in shanghai and aging beijing . We are so small that it will not cost us a lot to get in the game. Every dollar you spend cost them more because they are bigger . Right now we are doing right sharing ride sharing and we are just finding ways to make the economics work. Uber always starts with how do we make a Sustainable Business . The competitive dynamic can push you down sometimes but ultimately you have to have a Sustainable Business and that is part of our culture. At the end of the day we will try to offer the cheapest, most reliable ride in china. On the product side there are benefits to have uber roles versus the other guys and it will be interesting to see how we go against those guys going big. Last question, we are Double Overtime am a complete his regard for everyone else, if uber if uber fails, what is it that will kill you if you had to guess . The politics . The competitors . What is your biggest threat . That is interesting i think the stress will kill me. I think it would be the stress. [laughter] the last company was crazy stressful because i did not have any money and was always trying to make it work and i say i got 100 knows 100 nos per day for six years straight. This is a different kind of stress, four years in and you have to find ways to find that center, balance and sanity because again we are getting bigger and people look at us that way and you have to find that new balance. Right now that is stressful. We are working hard to find. Maybe you could do pilates . I am down. Thank you very much. Thanks. [applause] awesome stuff a quick announcement because a combination of Michael Arrington and electricity have slowed us down this morning. We have a couple contest todays is called disrupt vine and that is the theme you are working on, if you can submit a vine we will give away a mini drone tomorrow and if you need more information it is on the hashed the website. Our next guest is a super genius, do not confuse him with our techcrunch volunteers in green, he is a huge deal, not that our volunteers are not. He had his hand in paypal, yelp and now a firm. He has been developing in mobile years before we thought it was important, welcome alex wilhelm from techcrunch. Good morning. Thank you. How is it going . Great. It has been one year since you are here last time, wearing the same shirt. Im impressed with that. Dedication to the cause. This will take 100 years to build fully. Uber was just on and mark cuban was on a Television Program and i did quick math and i think that makes you the poorest person were interviewing in the first block. How to make you feel how does that make you feel . That is entirely inaccurate if you priced might affirm shares correctly. How would you . The sky is the limit for changing 20 of u. S. Gdp. There has been a lot of talk recently in the market about ebay divesting paypal you know the company other than anyone else, should ebay spin paypal out . At some point sometime in the next 18 months for sure, paypal volume will outstrip ebay so for all intents and purposes ebay will be in deficients of paypal so whether paypal spins ebay in or paypal gets spun out, ebay remains a key market or paypal but ultimately it is the faster growing of the two, so paypal must receive its full managerial. Would you buy shares in the new public paypal . It depends who the Management Team becomes. Who would you want to run the company you cannot say you. Im unavailable, im running my own Financial Services company. There are a bunch of people, probably the last person to run paypal after peter departed was david who recently became available. He ran something for microsoft for a while but he definitely knows paypal from the entrepreneurial age the best. To twitter had revenue of 312 million, do you think a pal by itself is worth more than twitter paypal by itself is worth more than twitter . That is asking someone who has not tracked paypal financials in a long time. I imagine is at least comparable. Say 35 million . I know better than to prognosticate about Public Markets. If you sold paypal under 2014 Market Conditions as opposed to 2002, would you have a more successful ipo or have sold or more money . How would it look differently from the current market . Again, thats an experiment you can only run once, paypal today is the force to be recognize reckoned with. It has as good a brand as easily or mastercard perhaps better. Hard to compare. It is an Incredible Company and im proud of what we accomplished. In light of current valuations, even among companies that are weaker and paypal was 1. 5 billion feel small. Sure. One decade has gone by and if anything, public arc at and largescale investors realize how permanent an impact on fundamental industries Internet Companies are. When it went public it was still in question whether these internet whippersnappers would be around forever. Jpmorgan has been around for 200 years, what will happen to paypal . At this point it is safe to say it will be around for a while. You regret the price . I try hard to minimize regret. You only had 2. 6 when it went public. Small number. It took a lot of money to build it out. There is been a lot of talk about the bubble, i think there has been a rise in asset rices that has been somewhat scary, do you see it crashing . Hard to tell about the Public Markets because they are so beholden to Global Forces outside the valley, so any attempt to predict our tempest silly. At a macro level we live in uncertain times, at any given times there are three major macroeconomics affecting conflicts russia, ukraine israelgaza, syriaisis. Will you see a correction in the price of companies in the next 12 months . Selectively, yes. There are a bunch of companies that are solving big deal programs where the Venture Capital Market Pricing them at the very least, optimistically but correctly around the kind of impact it might have. There are a bunch of companies that are not selling big problems that are riding coattails. What are some of the companies now that you think are well price but are not solving problems . Who are the superstars . Travis just him off the stage on the one hand, eyepopping value in the other hand an opportunity to disrupt market types, fedex, heinz [indiscernible] i have a very restrictive policy on buying shares or selling chairs but i probably would invest. Companies do you see them getting a whack to generate more money . I think they will find themselves having a hard time breaking raising money at the actual Value Proposition at the revenue level series a leads the series b. The think square possible you wish and is in line with where it should be . Im not nearly as familiar with their business as im not an investor as i perhaps should be i think if they hack the Small Business pricing they are probably undervalued. I love Financial Services. Apple is expected to introduce some payment offer for the phone and i watch. There so secretive so i have no idea who is running the amide ring for a long time it was rumored they were interviewing someone to run their division and that sue like that seemed like an interesting step. They have the Worlds Largest collection of credit cards on file and incidentally that database has never been cracked. They are giant targets that could do some really serious rearrangement of deck chairs. You think you would have to find some way to integrate your firm into it . I would love to. From what i read so far, apple will release Something Like a container for a Payment Method and a firm is a source of credit so we would fit right in. So apple has not talked to you thus far . If they did i could not tell you and if they did not i couldnt tell you either. That is a boring answer. Apples secretive. As apple tried to buy you . Apple has not. David said you would view that company in abject failure if it failed to sell for 1. 5 billion via have the same standard for a firm . Number one, i am not speaking for david right now, but having said that i figured out around the time of the slide journey that i really want to measure my success and failure by the number of people who use my products over a long. Long period of time. At some point i had 100 million users and did not feel good about it i made some announcement about this is of the company and ultimately it did not survive, there is not a single slide product in a and that is a year. I want a firm to use be used by hundreds of millions of able long after im done i dont really care what it sells for. You dont really care about the price in the end . I dont want to put a dollar figure on it i want a number of hopefully hundreds of millions of users. I would like to do whatever is best for my employees and investors when the time comes but at the moment im unencumbered by either concern. Would talking about it but i think people dont know about it, can you do the rundown of how it works and what it does . A firm is an attempt to completely reinvent Consumer Banking we started with credit because one of the revelations and made around paypal was that the internet was peeling off complexity and lack of information from every industry and finance was hard to figure out and not transparent and it still is today. When you get your credit card in the mail in their small print in some bank in london why does it have to be so difficult to understand . [indiscernible] 100 margin product in the world of taking his late fees and forms of hidden charges. As you unbundle the complexity you wind up with a more profitable Business Model and no one has really done it for financing so we set off with affirm to try and do that. What we did that and started with was pointofsale lending. When you go to the Department Store the person will say come apply for the instore credit card and you know it will be a painful process and you probably when i get approved and it is based on your fico score some magical scored no one understands and the fees will be bad and the Interest Rate horrible but it is a great boon to retailers. It increases sales and improves conversion. So they say what if we provided a great alternative. But affirm is for consumers to make purchases at pointofsale . Thats what it is today. Youre taking a one interest load, slightly high and then fairly low. Compared your credit card, if will pay 700 several hundred dollars. What would you charge me on an affirm loan . Somewhere between 60 and 17 and the average credit card, the millennial someone who is fresh of college with a psycho score probably 29. 95 is what youre looking at here in looking at. One of the things we do since we are a 21st Century Company we price every loan to the transaction to the person and these loans are not compounding interest so you know exactly what you are borrowing and what the payment will be each month. Good a want you to vet their credit when they buy so they . It takes less than half a second. How can you do that and look at me and my entire profile in less than half a second and decide the rate . That feels like a quick glance. So long as the rate i charge you is good for you we can access a bunch of databases and we have filled up good models that forecast your ability to repay and your propensity so a lot of the same math we did at paypal to figure out who is a good guy and a bad guy. Was a look for . Your algorithm sounds interesting. I dont think people will say theyre getting a fair shake from you because they dont know what youre looking at. How do they know it is useful . There are not required to take it to the can always call back with whatever form of payment they have available and make a comparison right there and then because we will disclose the Interest Rate and the charges. The way we figure out who they are and what they are is several interesting ways. The most important thing true of todays generation, the Social Security neighbor number has been replaced with their mobile number, it is a key index to databases. Anything from your social media to phone bill is a good way to figure out who you are and what income you have and what debt youre likely to take on an service and the debt to income ratio is one of the best financial metrics that we can use to figure out how likely you are. How much have you loaned out right now . Is actually growing off the charts so i am terrified to give you a number. We have been testing various forms of products and various versions of the loan and we settled on the simple installment loan with explicitly disclosed charges upfront. At this point the merchants forcing Something Like 30 to 40 on the parts site and they are promoting us aggressively. How much loan debt right now . That i cannot tell you but it is in the millions. Less than 10 million . It is less than 10 million. More than five . I will plead the fifth. Between one and 10. Thats really big. Looking ahead 12 months, do you hit 100 million . Yes. 100 million in 12 . I will hold you to that next year. What about people who dont pay you back . They have to not pass back lust roughly less than the combined Interest Rate charged because otherwise we would be unprofitable. We look at nonrepayment rates so people with super prime credit, people who choose us because of our transparency and quality of service is our prices give back 100 of the time. People that are already living in the session, go link delinquent delinquent and sometimes default in the Single Digits to doubledigit percentages and that is as it should be. Last question, what is the next affirm project . That i cant broadcast, we like to surprise. Thank you matt. [applause] what is up . Our next guest is special to me i grew up in dallas and i first learned about him and a mavericks game, he is so much more than the owner, these welcome mark cuban and our moderator. [applause] these are kind of comfy. Take up your shoes, yet comfortable. Welcome back. You are here in 2008 4 techcrunch 2008, for techcruch. You went on to tv fame and everything. Shocking. To us normal people your list of accomplishments reads like a bucket list. [laughter] i hope so. You built the company for millions, but a sports team and what a chevy chip, became a household name and you really dance with the stars. That was the best part. Now you are a privacy expert. I wouldnt call anybody a privacy expert it is important. Are you afraid that you are a public arson that your communication be hacked . The genesis was i had the fcc, after me and every message i sent they discovered it and turned it over when we went through discovery and they created their own context there was one part where i said i hate to lose talking about the mavericks and when we went to trial they brought that up and said he hates to lose and thats why he sold the stock and did not take a loss. It is crazy that anything you say can create context. From there thinking about it if you think of any email or message you send the minute you send it you lose ownership but not responsibility. We set over and again. With cyber dust when you hit send it goes to another user and never touches a hard drive and is never cashed anywhere and cannot be recovered or erased and recreated in any way. It cant be erased and recreated by the nsa or anybody. Where do you see cyber dust fitting . We are all looking for an email 3. 0. As we look forward, people are trying to find a better way to filter. You knows will involve so if you have to reference and the future and cyber dust will be there to replace a lot of your texting and emailing. When i send you a message, you look at it and 30 seconds after you are done reading it, it is gone. In my personal experiences and others, it is reduced my email productivity from 25 30 . A third application, a black feature where you got all of the words, i have 80,000 followers and like my twitter but the difference when i blast something, the only people who see it are the people who follow me. Because it is 10 lines everybody sees it. Twitter kind of default into a scenario where there are so many trolls that before we tweak anything, we have to be careful and consider how somebody might look at something for it is fun to be a troll unless you are being controlled. With cyber dust, there are no trolls. I blast Something Else and the it is a 11. I blasted out a motivational quote and i can respond to each of those personally. On twitter, i do not know anybody will see it because it is a timeline. Because there are so many people that are trolls looking for things that we say or looking for responses, people do not speak honestly and openly. You pull those things together and as a result, you shrink our digital footprints. As we go forward, cyber dust will look for ways to shrink and it will be more portend permanent there is so much out there we do not remember. And will be more important. Theres so much out there we do not remember. I have a daughter about to turn 11. I trust her. Shes more of an adult than ime a lot of times. She is going to send a very simple message to some idiot kid at some point Something Like you found my ipad and i sent a message that says i love you for that and that dumbass kid will show all of his buddies. And use it out of context. I will have her use the app and that message will be gone. It was not be something repurpose. If a kid tries to screenshot it, we know it and can deal with it. When we were prepared for this interview, you only talk to me and cyber dust which was kind of annoying because i had to remember what we had. Is not annoying. Some people are doing it wrong. You are doing it wrong. When you send a message and tap on it, it tends it and you will remember what you said. But for things that we have to remember, we use email. For stuff like well be here at this time on this day, it is ok. Whered you see it Going Forward from here . You see us do a lot of privacy commerce. Twitter announced they will do commerce and they did smart things with it. You do not want to be a position where trolls are saying you bought the this or that and why didnt you buy this . There will be a lot more privacy involved with commerce as we move forward. You will see as grow as a nice compliments for twitter. A publication, a promotion but cyber dust is for 1 1 personal communication and extended to email. Anything that another application that cause and that is called get expire. What i use it for when you post a tweet right now, theres no expiration time. Theres something about 20,000 30,000 tweets. I can tell you more about you from those tweets in your significant other can. Just because we say so much about ourselves and over the years, we leave it there. With get expired, you can set expiration time so it expires in an hour, a minute, a day. You can do the same with facebook posts and tumbler posts. Does anybody out here still have their myspace profile of . Do you want people looking . And you are still friends with what his name. The whole point is over time your digital profile is so big that it has a set we have not began to consider. We will craig tools and extending the cyber dust platform to shrink that footprint and let you gain more control of your privacy and protect you from who knows what. Mr. Cuban, switching years. I called . 50 5 0 50 cent, mr. Cent what tiger cyber dust is Company Number what for you . I do not know. 30 plus. What drives you to keep founding new companies . This is is the ultimate sport. Dylan with the mavericks, i will talk to our guys and talk about the 48 minutes of the nba game and practice in preparation. There is no sport as competitive as business. It is 24 by seven by 365 five forever. All of these young kids trying to kick your ass and i love to kick your ass. I am so competitive, i just want to win. That in a nutshell. You are not in the valid. Nobody smart is in the valley. There is a certain culture in the valley and a mini version in and a many minier version in new york. I do not have a problem attracting smart people. I can get people here. There are a lot of advantages. Theres an incredible arbitrage available. We talk about on shark tank. If you are from stanford and you have a tech degree or mba or law degree or design and you do not get an 8 million valuation on your startup, you are in idiot. Outside of these three areas that same startup may have a 1 million valuation. Theyre just as many smart people and great Business Opportunities in aggregate outside of the valley as inside. Investing outside and sell it inside to me is the best arbitrage available at has worked out very well for me. Silicon valley as got a approach whether vc or angel. Almost a fear of missing out where people throw money at everything because they want to find their unicorn. Hey, i invested in twitter and uber and facebook. What they do not tell you are the other 99 of their portfolio that has failed. That approach doesnt sit well for me. That is led to mistakes. Travis was here. I invested in one of his earlier companies. He probably brought it to me first or second over and we cannot agree on valuation and he found someone else. Thats probably the one investment i wish i could get back. I invested in a company off of an email. I got my money back and was thrilled to death. I have 20 other. If i were to approach you for investment, what is something i should know about the you . To get your money . To get my money . I am very transparent with all of my companys 30 should know the companies i invested in and why i invested in what value you can bring to me and your company will be great. A lot of people particularly in the valley they sell themselves which is fine and the idea which is ok. But then they figure getting funding is the end all, be all. I got in angel. These people agree with me so it must be a great idea. I hate that approach for your i want to know not what your exit is going to be bold why you will be a sucker a successful company. How youre going to be insanely cash positive because it makes it easier to continue. Such a great answer. Shark tank and these investments. What is something that will make your eyes glaze over instantly . That is instantly. When somebody says the market is asked billion and basically implies if i get 1 10 of 1 of that x billion, it will be huge, it means nothing. We can ill talk about pick an industry and say how big it is going to be it makes it seem so achievable if we get 1 . When in reality, it is no thought or intelligence. That is probably going to turn me off and have me say no. On the flip side, what is the best way to do it . Tell me what your core competency is and why you are great and why it is protectable and to scale. And thats it . Pretty much. Shark tank im how did you get involved . Mark burnett came to me when it was first comment on the air but thats when the fccs assuming so abc would not let me on the show. When the kids got dismissed they came to me and said, it looks like it will be behind you and we know it is fulls bullshit. I came on as a guess and did not think it will last. The show has blown up. I came on as a guest and do not think it would last. I have heard the response that the show is not the business but aspiration, inspiration, telling the whole country the American Dream is alive and well. People moved to the valley because they believe in the American Dream rim in Middle America and places where theres not a lot of money, they want to see a family from iowa who came up with a Screen Protector and is doing one million in sales. Or a number of different examples because they can project themselves. I have learned shark tank is the number one show watched by families together. Why do you think it is . If you have an eightyearold, 12 year old and they are sitting there at home on a friday night saying i like this idea or do not like this idea, i wouldnt pay as much of the evaluation, understand what equity is an approximate gross margin. Parents, you will be proud of your kid when their top by that instead of was number one on the charts and tell me about our rio grande latest hit Arianna Grandes latest hit. It is to them being an entrepreneur and being excited about business. You can call it a new age lemonade stand. And theres a theater for a number nor ship and we see that you were involved in the beginning with that, too. We affect Companies Grow up and blow up. We will wrap this up shortly. He recently talked about Companies Moving overseas to avoid u. S. Taxes. What is wrong with trying to make your company more profitable . Nothing is wrong with trying to make your company more profitable. Who owns your company . Shareholders. There is a misconception. You buy a stock and the ultimate goal is to have the stock go up. You want the company to increase your net worth right . They are not necessarily the same. If i am buying stock in a company and all of a sudden, they are moving overseas to avoid the taxes they otherwise would be paying. Would one company does this maybe not so much. When this becomes a trend and companies are buying startups in england or some other country we are losing tax revenue. Who makes up the difference . The marginal cost of our taxes goes up 1 , 2 , 3 . Because this company is trying to increase their bottom line, my net worth goes down because we have to compensate for that. On the flipside, lets work on changing the tax rate. Lets come up with solutions. The markets for improving profitability are very efficient. Accountants, cpas, and lawyers will find ways to work around things. Start off as what starts off as anecdotal, it turns into a flood. I like investing in companies. When a Company Moves overseas and takes that tax revenue with them, there is some impact on services. That negatively impacts customers. They might not have as much money available to them and that could have an impact on the business. We are in this together . We are in this together. As the owner of the mavericks, do you have any advice to the new owner of the clippers . I emailed steve. I told him he should not be so shy. He will have a lot of catching up to do to keep up with me. Like anybody else, you want to be yourself. Fans want to see an owner that eats, sleeps, and breathes the team. It is one thing to be at microsoft when you are the ceo. A whole other thing one of the big differences between running a company, there is no beat reporter who has to write about you every day. There are not 20 blogs having to come up with something every day. Everything he does will be reported. It will be easy to see how he is on the sidelines. I am hoping he is crazy. It will give me a little sidekick. I do not give a shit. It will be 15 years in january and you have not seen me mellow or slow down. Will the mavericks make it through the playoffs this year . We are undefeated and i am ready to go. Mark, thank you for your time. [applause] our next panel is really the main question of disrupt if you are an entrepreneur or investor what will we be funding . We have amazing investors that will join us. Omar from sequoia, cowboy danny, and our moderator. Clap. The mike will work eventually. I skipped over the disrupt vine thing. We are doing three competitions. How many people still use vine . It is like six of you. You have great shots that are you have really great shots at winning. Please disrupt the vine and tomorrow we will be doing another one around instagram and twitter. Lots of cool prizes. Does anyone have a question . Ok. Why is it so gold . Cold. A billion bodies are in here and if we did not make a cold, you guys would complain the other way. No. That is not true . I have been at a disrupt with a busted ac, and you guys were mad. I will spend my time negotiating and i will see what i can do for you and i will let you know where we are at with the ac. 75 sound good . 73 . 75, i think that will work. If you have a problem with that tweet to me. The ac is the most important thing, but lets focus on the investors. Do you want to hear their names again . Susan said yes. Omar from sequoia, cowboy ventures, james from greylock, danny from index ventures, and are coeditor danny. Matthew. All right. My microphone is live this time. Ok guys. Lets talk about some stuff. Welcome to the stage. I will do this. That way i can see everybody. A lot of things we could talk about. One of the things is this issue we have with hiring engineers in the valley. It is becoming so easy, i use easy in quotations. It is easy for people to get funded and the tools are there and the money is readily available. What happens when it is easier to start a company and get funding than it is to higher an engineer . I will take it. I think paradoxical, but important approach for a ceo running a company in this environment is you have to recognize the people working for you probably will want to start their own company. You have to actually be focused on how you help them accomplish their goal and be great as opposed to filling a role in your company. I have a story on this. Recently, i am on the board of a company, and the ceo asked me to give a talk at the company to his engineering and product team around how to start a company. Initial thoughts on having someone do that to your team is like having someone train your girlfriend had a meet guys in a bar, right . If you want to attract and keep awesome people who are entrepreneurial, you have to make them feel and backup that you are going to support them. If you were looking at the companies out there, a grouping of companies, what do you think the dream job . You can answer with one of your folio companies. If you had to pick one, what would it be . Portfolio companies. If you had to pick one, what would it be . I think it depends on what the engineering is looking for. A lot of the jobs of the Venture Capitalist is to be a recruiter and be a headhunter. In many different cases, it depends on how early and how much responsibility the engineer wants and are they going to be thinking about having more of a specific role in a more Mature Company . Or do they want a more not impactful or more defining role in terms of culture by joining an earlier company . If you are joining a company like etsy, very different from joining a company like goodx. You are going to have different priorities. A lot of the attention that comes from the press side of things right now is based on the founders of the companys acting companies acting like a tyrant. They say things that could be deemed insensitive. These boy king founders, does that matter when you are talking to an investor . Is this a problem down the road or it doesnt matter . The person you are investing in or the team you are looking to invest in is one of the key factors in making a decision. This is not you are joining the team in trying to partner with a company and trying to work with this person. Their demeanor, the way they run the business, whether they are ethical whether you think they are driven, all those things factor in a lot. Those are primary topics of conversation. There is a distinction between somebody who might be difficult to work with or somebody who is perceived as difficult than someone who is unethical. Many great entrepreneurs can be difficult to work with. This incredible conviction or force of will to make something happen and i find i am fine working with people who can be challenging. The other quality, most onchip or newers who are successful are doing it for the first time entrepreneurs who are successful are doing it for the first time. You can understand if someone is selfaware. If they are open to feedback and will have a compounded daily learning rate. That is an area where investors in the board can help. Where a lot of these companies for a long time have a head of hr. They are not really getting coaching in the first time ceos our young people. Are young people. That is an opportunity for the Investor Community to do a better job of giving input and setting expectations for some of these teams. What is the best way to run a company . You have young entrepreneurs and they have this promotion that people are difficult to work with and you can create a situation where somebody is not difficult and maybe i should be more of a jerk and more aggressive. At your first question of how difficult to work with and you hard it is to hire and retain people, it is not that hard to be a decent leader and we should all look for that. There are some people harder than others. In general, it is important. Easy to work for. That cultural front, when it comes time to invest in a company, do you consider social good components of a company . Whether it contributes to the populace or a positive impact on Carbon Footprint . Do you count that as a factor . One of your major checkpoints when considering investing in a company . I guess what we have come to realize is it is actually from a generational standpoint, we are seeing millennials expect a social commitment and are looking for businesses that have social responsibility being integral to their Business Model to actually being interested in the business. And we would say is we do not need them as being mutually exclusive but in the businesses that have social responsibility as far as the Business Model are likely to be the more successful in their space. I was mentioning etsy before and the reason it has hit a nerve is because the customer wants to be able to help that maker make their vacation vocation their career. Their passion becomes their vocation. Creators get back to my fans. I suspect this question will become less and less relevant over time and it will be part of these Business Models. If youre talking about cultural things in the valley, there is something we need to talk about. There seems to be an abundance of male founders versus female founders. I do not think we need to belabor that, it is a fact. How do you make the environment more inviting or what is responsible for that disparity and how do we change that . Not asking you to fix it on stage here, but it could be nice if you could. Do you have any ideas of how that might be fixed . There is there is a number of issues that contribute to it. It starts with Education Around Technology and engineering. I think it has to do with the framing of the problem. A lot of the times the problem is framed as we need to do this good thing by bringing more women into the industry like it is something a favor. As opposed to something that is necessary. There are business outcomes that happen and that are negative by not having more women and companies. By looking at it as a real problem as opposed to a favor, it it will change the perception of people and what they are willing to do to fix it. I think there is a pretty Broad Spectrum of stuff happening in companies from things at the extreme harassment, gender pay gap. Some people do not realize those things are actually illegal and for your company at legal risk. Softer on the spectrum around culture and people feeling like they are not supported or favoritism or things people say that are under candid that are unintended consequences of feeling uncomfortable. There is an opportunity for some type of a Training Program to go into companies that will help them audit where they are in terms of do they have a fair environment . How do they unpack some of the bias stuff that goes on every day that creates a more uncomfortable environment . I feel like we do not have the tools that we need, but i am hoping every day, there is a new article or study or example of people of bad stuff happening. The only thing i was going to say to that point, to the point of auditing. We do a regular audit of how many of our companies of the 140 companies that we have have women as leaders are founders . We are at 15 , which is surprisingly high, but it is a massive issue. It is further amplified most of my customers are women. This massive disconnect. Part of it is thinking, ok, can we find a partner that obviously could complement the work we are doing . There are a lot of characters characteristics that make a partner. The other one is using this founders to support new founders we speak to. It is clearly something that has to be addressed. One observation i have had greylock, we have been around for 50 years. If you look at the partnerships at greylock several decades ago it was mostly white protestant men in blue blazers. When you look at how the Tech Industry has evolved, most of my partners are asian indian, and jewish, which mirrors but still male. These things are inextricably linked. The point that danny touched on, having a generation of companies where there are women founders into being successful outcomes, which is coming with a higher percentage, will help contribute. I hope james is right. I feel like a power move will be for a high profile top tiered firm to announce two new female vcs and i feel like that will happen in the next two years. They will get the most attention and the most kudos. I think we fixed all of that so it should be all good for tomorrow. How do you tell somebody they are not a good founder . Somebody walks in and gives you their pitch and you hear them out and you think to yourself, they are not the right person. Maybe the idea is good. It is a sensitive situation and they come with you with hopes and dreams. How do you tell them, do not do this . I would be good at delivering the message . What i would say is that typically, what we see is the most successful founders are product oriented and very instinctual around the Market Opportunities they are going after. Think of tim from pandora playing at a piano bar while he is developing his music business on the side. We are looking for a product experience that emanates from the founders experience. There are companies that have been started by folks who do not look like they are out of central casting who are successful companies. Several folks invest in marketplace businesses. Some of the most successful marketplace businesses have founders who are not guys who have done it before. They are incredibly resilient scrappy, aggressive. The marketplace, it is hard to get liquidity. Once you do, it can be hard to kill your business. Our reflexes, this instinctual founder with the right background. But there are plenty of exceptions. I believe this person is scrappy enough, but i would tell them no about this product, but i like them so much, i want them in my fold . You can back somebody who has great domain expertise, or you see situations where somebody is not out of central casting, but what they are doing is working. They be better that it appears on the surface may be better that it appears on the surface. I would say you should be able to tell someone you are meeting with who is the founder and they are not a good founder in the meeting. You do not have to do a followup. If you cannot help them in that meeting, something is wrong. In a lot of ways, in my case and probably in other cases, there is no central casting for a founder. Youre looking for people who are crazy enough to go after their lifes mission with an entrepreneurial venture that has more chances not to succeed. It is difficult to find pattern recognition. If they are not clearly going to be successful as a founder, it is quite obvious pretty quickly. The idea is not enough to make a business succeed. All of a sudden in my head, if the person is clearly of high caliber, high intellect, but not a founder, im going back to my headhunting database of all of the companies i am thinking through and pitching them. Maybe you need a little more experience working with another company and maybe you would like to do that before you start on this because here are the five reasons why this is not a great idea or you are not ready to start the company. It is dangerous to be that categorical to think somebody is not a good founder forever. I probably was not a good founder my first, second or third, but the fifth one worked out. If someone had told me, you are not a good founder, maybe i would have stopped trying. You might want to say not now or try doing this, maybe one more job. Not a good founder forever is dangerous. I agree. Im trying to think of a founder who has not had bumps in the road. The board and the investors should have a close relationship with the founder and be able to have those conversations on a regular basis so it is not out of the blue. You walk in and they say you are doing a bad job. It has to be a constant dialogue. Do you have a good enough team to complement you on this stuff you do not want to spend time on . How are we going to help you develop . There are lots of examples of folks ive worked with who have not always been deemed to be great founders, but they end up building great companies. It does not just happen miraculously. Excellent. We have 40 seconds left. What is the top two most Interesting Companies you are not currently investigating invested in . I would say uber is one of them. Uber. I would say airbnb and doc ker. Thank you very much. [applause] i have breaking news. Super important announcement. The ac has been turned down. I know. I went back there with an iron fist. My audience is serious. The sun is coming out. We are walking a delicate line, feedback if you get too hot. There are 400 startups out there and that is just today. They are super important and they are all really cool. You have the opportunity to vote on who can be plucked from startup alley and participate today. Voting closes at 3 00 and nine courage you and i encourage you to check them out and figure out who is your favorite and vote. We will have the website up on the screen. I do not know why they gave me that to memorize. In the meantime, our next guest is elizabeth holmes. Please give her a warm welcome. Ok, i will. I am john cheaper. The woman i will be interviewing needs no introduction. We are going to have her first here for a Techcrunch Disrupt event in which i will do to my blood drawn live on stage right now so you can see what the theranos office looks like. We have a phlebotomist who will come out. If anybody is squeamish, i would urge you to look away while the magic happens, if the magic happens. If you can come out. No. Move that up here. Get that right there. I am sorry very i am sorry. We will get to the meat of the interview. What does this entail . All right. There are vials, for those of you who cannot see what is happening. A traditional process, i would be rolling up my sleeves and people would be tapping my same my vein and a process. And there would be a big, big needle. This involves no needle. There is a warming packet. I am sorry to do this, but this the best way to go about it. How many times have you had it done . Probably tens of thousands. All of the time. When was the first time you did it . I understand you are a little squeamish about blood yourself so you may be the first hemaphobe to start a bloody business. How did you prep the first time . Needles is the only thing ive ever been scared of. I figured the first time i did and i had to do it in front of a group of clients and investors so no matter what it would look painless because i would have to make it painless. And i did. It is psychological once you do it, you learn it does not hurt. And exactly what you are doing here, the process we developed replaces traditional phlebotomy or practice of getting big tubes of blood from the arm with these tiny nanos, which collect a few drops. We are ready and i am about to get poked. We will see what happens. Tell us if you think it is painless. Oh, good god. It is not started yet. There it goes and there it is. It was done quick and painless. I have had more pain her parents preparing for this interview and then getting my blood drawn right now. There we go. I appreciate it. You were in stealh mode for 11 years. How did no information leak . And how did you retain talent over the course of that time while you are doing all this development, doing all this development, and you cannot say anything . We had a lot of work to do. This is a very big mission and goal. We wanted to build out the solution before we talked about it and as a result, we do not have a website. Didnt have a website that said anything. The clients we did have were under nondisclosure so we do not have to talk about what we working on before we finished it. And so, for about 10 years there was no press release or anything in the media. And the last fall when we reached a point where we can make it accessible directly, we began to talk about it. It was very simple. Do not talk about it. The first will is do not talk first rule of your company is do not talk about your company. When you approached customers while in stealth mode and tell them about your vision and your business, is that it . Fantastic. You want to see it . Do you want to see it . These are the amount to draw a test. We will see you later. Thank you so much. You are trying to get these customers, how do you get them to sort of commit with sight unseen to a technology that you are still developing . It is at a point now in which it is directly available to people as an alternative to having big needles stuck in their arms. And in the approach we took was to have people try it out and see how it performed and if it performed well and work with then work with us. And lots of our work was for pharmaceutical companies and there are not that many pharmaceutical companies are as pharmaceutical companies, so as we built those relationships, we had the opportunity to deploy our system and build our infrastructure. You have raised 400 million have a 9 billion valuation. How much revenue are you generating and did you start generating as the money was coming in and when did the first cash come in and where are you now with profitability and the need for additional . We have been growing for some time. We first started generating cash from operations through our work with pharmaceutical companies a year or two after i started the company. And that has been the platform on which we build the business. I have tried early to get away from what i called the equity on umbilical cord where you do not really have the business and thats been the foundation for you do not really have a business until you are generating revenue. Thats been the foundation for growth. We are a private company. So we dont really talk about what our revenues are. You can talk a little bit about it and give me a ballpark. A 9 billion valuation. We will get back to that. So Many Companies have tilted at this windmill of driving down costs of testing at making them more accessible. How have you managed to do this . My blood is just drawn and i want to get tested for different elements that i think i may have because i am paranoid about all of that stuff. What happens next in the process . Can you walk me through what my blood would go through as it gets tested . Absolutely. Weve redeveloped the laboratory from end to end to make it possible. One element is the tiny samples and another element is the cost. The infrastructure we have built, we have begun opening what we call our Wellness Centers which are our locations located inside of walgreens pharmacies. We have announced our National Partnership with walgreens and in the context of our expansion across the u. S. When somebody comes into the wellness center, we will scan their insurance card and their identification and build an electronic infrastructure to do realtime eligibility for labs. Thats on the front end. So that when you, in, you know how much that test is going to cost you and what your deductible is. How much is a typical test for a normal sword sort of array of blood test . When we announce our infrastructure last year, we began pricing our tests at 50 off of medicare reimbursement thresholds to exactly change the cost in terms of testing costs. Since then we have begun to further reduce the rate at which we make those tests available in all the way down to, in many cases, 90 off of medicare reimbursement. 90 . What does that mean for someone who in a minimal wage and job or may not have insurance or the bare minimum . It means you can get a test for 1. 99. And that is now . Today. It is pretty cool. I think that is the technical term, pretty cool. When you started off with this vision, i am sorry i jumped ahead. Thats the insurance component and pricing. On the back end with the lab what is happening with this miniscule amount of blood that is enabling you to come up with a full range of results. Exactly. So, from the time youre in the wellness center, once the price point has been identified for someone so they know that how they know that even if they have a to dr. Bulk have a deductible and noknow how much it will cost and they can decide whether they want to purchase the service as opposed to getting a bill in the mail three months later for some unknown amount, the little nanotainer tracks the simple. When they go to our labs, we redevelop all of the chemistry associated with running these past on traditional forms to make it possible to run any Laboratory Test from a tiny droplet of luck. Of blood. What will happen is it will be run through and we have built out analytical systems on which to run the chemistry and traditional instrumentation requires a much larger tubes of blood. Then that data will be electronically sent to the ordering physician and integrated into their emr systems. When we spoke you mentioned you had done work with the military on this. What are the applications there and how do you see sort of the business extending beyond Wellness Centers at walgreens . I dont think that is the end goal for you. There is a huge opportunity in decentralizing the testing infrastructure to make comprehensive Laboratory Information and information is important because it drives 70 of clinical decisions accessible at the time it matters. In the trauma context, the ability to get close to Realtime Data in the context of being able to stabilize someone in the field, for example, can make a difference in terms of lives saved something we are inspired by. And the context of remote areas where there is no Central Laboratory infrastructure, the ability to put in place a decentralized infrastructure leapfrogging over the last lack of conventional infrastructure similar to what cell phones and digital cell phones did to land lines in china is significant. If you can put a decentralized effort structure in place, you can lay the foundation for decentralizing delivery because you have what you need. You layer Remote Health care, consultations on top of a remote testing and you have an ability to provide Rudimentary Health Care globally. Exactly. And do you want to own the other piece, remote consultation . We have built in software and web been talking about one of we were talking before this about one of our favorite quotes, software will eat the world every the communication piece is there. We are a laboratory company, what we do is make it accessible and a time and place that matters. There is the opportunity to link in. Have you talked to the folks doing remote care now . We will give you five cents every time somebody says software is eating the world. That makes sense. Its only fair. Back to what we were talking about, have you been in conversation with folks doing this type of remote consultation already . We have been in contact with people attempting to provide care in rural areas and struggling because they do not have access to Laboratory Data and comprehensive data to be up able to provide the kind of care needed. Thats going to be an important area. You have what is perhaps the most accomplished board i have ever seen. Sam nunn, former senator, bill frist, former senator, a former general with the marines admiral . I dont know. You also have an admiral. You also have david boyce as your lawyer. Why stack the deck so much with so many people . And kissinger is on your board. Why do you need all of these guys . What is it about the industry that makes you collect Civil Servants of the highest caliber . We have never thought about as stacking the deck. But we do believe that technology has an incredible role to play in enabling resolution of policy issues. In health care, the ability to use technology, what we are doing and pricing, the way we are for medicare and medicaid is saving medicare and medicaid hundreds of billions of dollars on an annual basis. With the opportunity to leverage what this country does so well in terms of creativity and innovation to facilitate policy change, we have been very lucky to be able to get people who really understand what it means to be able to make a systemic change in the world and to be able to advise us as we work to do that in reducing Health Care Costs and changing outcomes. We have both spent time in china and china is very big on fiveyear plans. So, when you look out at the next five years, where do you see the company . What is the goal for the next five years . Where are you going to be . The goal is access, no matter how much money they have or where they live. For us, its hard to give examples because 40 60 of the people in our country dont get tested because they are scared of needles or they cant afford it. It also means operating in locations closest to where people live or where they get care. That is in our country and in other places around the world. Do you start selling technology to people or Licensing Centers to set up anywhere, or do you yourself man and operate centers at a low cost around the world . Right now, we are operating centers inside of walgreens inside the u. S. Outside the u. S. , it will be a different model. It depends on where you are. We are looking at where you go first and what local infrastructure is already in place or whether we need to develop that infrastructure. Are there any partners other than walgreens that you are going to partner with . We have announced our relationship with the hospital system. That is important in the context of being able to change the inpatient process. The amount of blood people have to have taken in a hospital setting, but also, as hospitals become accountable as care organizations, the need to save money and therefore keep people out of the hospital. That is something we are very focused on in our recent work. When you think about the problems that you have scaling what worries you the most . Making sure we have the right people is what it is all about. As we get the right people, we can make sure that the service we provide person by person is excellent. We have an extremely longterm mindset with the respect to realize this mission. Literally, person by person, have we created a wonderful experience, and pacing our growth around that. I think we are out of time. We appreciate it very much. Thank you. How are we feeling about the temperature . A little better . Well, now that we have solved your first world problems, we are going to bring up the entrepreneur in residence at the United Nations. You dont think those things go together but they do, and we will explain why. Please welcome to the stage Elizabeth Gore and our moderator. Hi, everyone, thank you for coming out. And thank you for deciding to make your announcement today. First off, she is not related to al gore, so stop asking her if her dad invented the internet. My dad in texas did. What have you been working on . It has been amazing. In the United Nations foundation, i have actually been working with all of year to figure out how your company can save lives. My favorite is what is going on in emerging technologies. That has become a huge area. Facebook announced they are launching in africa. It seems like there is a lot to be done. But you are going to be working on something neo. Today, elizabeth is announcing that she is the new entrepreneur in residence at dell computer. Thats right. Thats pretty cool. What does that mean . You know, i am going to have a baby and then figure that out. No we are really excited. Technology is the only force that is enhancing the Human Potential positively. The United Nations and dell are not that far apart in understanding that if we dont make Technology Accessible for all, and i mean everyone, we are not going to succeed. The other thing is, we need 500 million by 500 million jobs by 2020, and they are coming from entrepreneurs. We are collectively going to be pushing for the policies needed to support entrepreneurs. It makes sense why dell would want to have your help with those things, but why did you pick dell . We picked each other, to be honest. We developed a relationship and understood that if we dont work with entrepreneurs to give them access to capital, better technology, better relations, we are not going to get the jobs and policies we need. We got on Common Ground pretty quickly. You talk a lot about Global Solutions. That seems like a buzzword straight out of the enterprise world. What does it mean . What is an example of a Global Solution . We have more phones than people by the end of the year. The mobile phone in my mind has been a Global Solution that is changing everything. If you look at how we use it for Data Collection to reduce disease, for example. With a bola there is no way we could compartmentalize to try to ebola, theres no way we could compartmentalize to try to stop it. Drone is a bad name, but we are using them for dissemination of vaccines and very positive things in the world. Solutions can be profitable and save lives. The Silicon Valley tech ecosystem sometimes gets a bad rap about people making money to make money or making money to make themselves rich. What have you learned during your time at the u. N. To the about what we can do to contribute question mark what about the average tech worker, well off but not superrich like the people in our audience . What should we be expecting these workers to do to donate and volunteer and help . All of you can quickly look at your triple bottom line. Thats something i talk about a lot. The day you start your company, you can talk about how it is going to be profitable, but also talk about how it is going to affect people and the planet. For most entrepreneurs, its going to be a long time before they can write a check, and thats ok. But they have an opportunity to affect the world around them with their technology. You would be surprised about all the solutions that everyone is looking for. Theyre in these startup communities. Its not just about writing checks. Its about how technology will save lives. Sometimes its about a tradeoff. Where are you allocating your resources . If you are public, you must answer to shareholders who constantly want more profit. How do you find that balance as an entrepreneur . A lot of entrepreneurs are looking at that from the day they open their business. Its part of their business plan. They are looking at that from day one. Dell is arriving but has dell is public but is always looking at social entrepreneurship. That type of thinking that we really need to support everyones work, job creation thats what going to fuel all of these businesses to be successful. Personally, i really hope that the investors step up and say hey, this is something that matters to us. Its not just about our companies maximizing profit. Its social good as well as profit. I would love to see more Venture Capitalists come forward like that. I think you would have a better time building your portfolio if you are trying to make a better impact in the world. When it comes to dell, they have a lot of humanitarian efforts. But when is it ok to make money saving a life . And how does dell handle that . How do they decide what their margins are . Do we save more money or do we say save more lives . You can be a Profitable Company and look at the technology you are using with lifesaving applications. Look what dell is doing with translational economics. There are thousands of units of data. They are looking at kids with cancer and trying to make tough decisions. Dell goes in and looks at everything in their analytics and shortens that decisionmaking from years two minutes. I am ok if they are profitable if my little girls life is saved, right . Another area is most entrepreneurs, 90 or so, are solving problems with profitable companies. They are going to be around a lot longer than charitable donations would allow them to be. I think it is ok to be profitable and save a life. Companies can simultaneously make money in one part of the world while investing in others. There is one that will educate families in india about how to care for people that would normally need to be in the hospital about how to give them home medical care. They fund that by selling that same service in the bay area and teaching richer western families how to do that care at home. They are taking that money and then giving the service away for free in the developing world. I think thats a great example. Entrepreneurial liaison sounds like a cushy job to me. What are you going to try to accomplish . I have a lot of pressure. I am actually do this afternoon, so we have to wrap this up. Dell is an Incredible Company. Michael dell and the whole company have made a huge commitment to entrepreneurs. They are providing technology, but they are also working on Technology Objectives that help create 500 million jobs through the entrepreneurs they work with. Thats a lot of work to do. I dont think there is any cushion and not at all. But they are committed to it. I am committed to it. We are excited about it. Technology is the fabric that binds all of us. I think it is a good company to thank you for your commitment for that effort. Thank you. Coming up on cspan, a discussion on Government Policies and the internet. The swearingin of the new defense secretary, followed by remarks from president obama speaking to reporters. That is followed by eric holder speaking at the National Press club. Now, a discussion on Government Policies and the internet. Harvard universitys institute of politics hosted a discussion with representatives from google, yahoo facebook, and yelp