An entrepreneurs vision of the future. Mister case, this is not the first book known as the third wave. Is not. Ive borrowed the title from the board book wave in 1980. I read that book and i was completely mesmerized by the agricultural revolution being followed by the industrial revolution. He was predicting that for decades ago. The Technology Revolution we are talkingabout, what we now know asthe internet. I knew thats what i wanted to do so it took me a few years to get into that world. When i finally decided to write a book i borrowed that title. He was still alive at the time and has since passed away and provided us a blurb for the book so we closed that circle. What are your three words . I focus on the internet so its the three waves, one way thats coming. The first wave of the internet was getting everybody connected, getting the world online. When we started back in 1985, 32 years ago, only three percent of the people were online and they were only online one hour a week. We said we wanted to create this connected world we knew it was going to be tough. Many companies were involved, the beginning of that is the first wave, nobody knew about the internet or cared about the internet. By the end of that, everybody was connected and they couldnt live without us. That set the stage for the second wave which lasted 16 years or so which is Building Software and services across the internet and google and twitter so theres apps mostly on smart phones that combines the second wave but now were starting to see the third wave pick up steam and thats really the internet and the integrated and much more aimless and pervasive ways, sometimes invisible ways throughout our lives and across the sea like healthcare, education, transportation, energy, food and important aspects of our lives, big sectors of the economy but the reason i wrote the book is because theres a different mindset and playbook whether youre an innovator or a policymaker if we are going to be successful in the third wave. Can you give an example of what you mean, a product we will see in the third wave or thats already in itsbasis . Healthcare. Everybody focuses on the challenges of healthcare, its 16 of our economy. How do you use technology to make health care more convenient and have lower costs. And the anderson Cancer Hospital in texas says when people come for second opinions, 25 percent of the time they were the first opinion. An analysis problem in peoples lives are hanging in the balance so theres a lot of work their way when companies, that was recently called tempest is creating an operating system for cancer using technology that would be much more precise in terms of the diagnosis and much more precise in terms of what drugs or therapies people should take so thats an example. We know kids learn differently, some are more visual learners. How do we use technology to create a more personalized approach to learning and theres going to be a revolution in learning in the third way so there are all kinds of things. If we look healthcare education, some of thats changed in the first wave and second wave but not that much and for most people the way they interact is about the same as it was 20 years ago but thats going to change a lot in the third wave. In your book, you talk about a 20 40 scenario and you say in there that google is not going to be that big company that everybody talks about. Theres always things that rise and fall. This company california, new york and massachusetts so 47 state out of just over 20 percent of Venture Capital. We need to figure out ways to support entrepreneurs everywhere. We saw that in this recent election. A lot of people saying i feel left out and left behind by globalization and by digitization. We need to make sure in the third wave we have a more inclusive innovation economy and are backing startups that are creating jobs everywhere, not just doing that in a few places like Silicon Valley. When i read that statistic about 75 percent going to california, massachusetts and new york, i was surprised that Washington State wasnt included in there and you have another step which is only 15 percent of Venture Capital went to thered states, the 30 states that voted for donald trump. What we are essentially doing is we are backing the entrepreneurs in places like San Francisco or new york or boston that are doing interesting, innovative but also disruptive things and some of that disruption is destroying jobs in other parts of the country and that will accelerate in the next 20 years with on official intelligence and robotics, Driverless Cars and trucks and things like that and thats inevitable, technology has always done that. 2000 years ago over 90 percent of us worked on farms versus two percent because of technology essentially made it easier to do farming so these technologies will continue, the answer is theres nothing you can do to stop that what we need to do is make sure we are offsetting some of the jobs being lost in the middle country by backing the startups who can create jobs in the middle of the country and not just backing the entrepreneurs on the coast. Theres got to be something that we come together in a bipartisan way and figure out ways that make sure capital flows more evenly. Its the other statistic that sobering is 90 percent of Venture Capital went to men, 10 percent to women. One percent went to africanamericans so it doesnt matter where you happen to live or if you happen to know or what you happen to look like in terms of getting access to capital. We need to level the Playing Field everybody everywhere really does have a shot at the American Dream and the process we are backing for entrepreneurs and startups bringing great jobs everywhere and get more people in this country a sense that they are part of the future, theyre not going to be left behind. From your book americans are having two very distinct conversations about technologically driven change. Does this go to the Digital Divide that we talked about . Its an innovation divide. There are parts of the country, rural areas that dont have access so we have this debate in this country around infrastructure, of course we need to invest in better roads and bridges with physical infrastructure but we need to invest in more of a digital infrastructure, things like broadband and make sure it is broadly available across the country so we dont have this world where some people have these connections which then are the platforms that do innovative things and create jobs. Thats part of the dynamic but the other dynamic that we follow in the book, the rise of the west. How do you make sure entrepreneurs everywhere have access to capital and telling theres tories we dont have these places where all the wealth and innovation is happening in the rest of the country dealing with whats left behind. For the last several years mister casey you been using the term internet of things. You use the term internet of everything. Thats an exciting concept around the sensors and how you integrate that into your home, offices and cities, things like smart cities but these third wave is larger than that. Its integrated to everything in a way that even internet as a phenomenon to become taken for granted like electricity. Electricity was a new technology and now we take it for granted. Its just embedded in what we do. The internet is on that path and thats one of the dynamics in the third wave but it does have some complicated issues. The internet is embedded in everything and its integrated in our lives and in fundamental things like how we stay healthy and move around cities, even what we eat, things like that. There are also responsibilities that come with that and that the big theme of the book. Its the reason i wrote the book. I want to make sure the policymakers understand the dynamics in the third wave so we get the rules right but i want to make sure the innovators, the entrepreneurs know they have to engage with the policymakers to make sure the rules of the road are structured in the right way so innovations can flourish and the industry and some of the issues around privacy, big brother, where everything is connected, what about Cyber Security and cyber terrorism, all these are big deals. Were not going to have Driverless Cars on the road or the sky without some kind of Regulatory Framework so thats going to be different in the third wave than it was in the second way. For facebook or instagram or open table, things like that. The policy wasnt that important. You didnt have to pass muster with a drug from the fda or Something Like that or a Financial Services to make sure theres certain protections of the dynamic around the innovators engaging with policymakers, its going to be much more important in the third wave in the second. From your book, government is going to play an Important Role in the third wave and like you said, its different than the first and second way. What were some of the policy issues you dealt with when aol was coming . I would say the policy as government was important in the first wave, it just became largely unimportant in the second wave, im just predicting this book is going to become important in the third wave. When you look back on those early days, the government did fund the basic research, the defense agency. They created the internet and the government decided through the digital distribution by judge rainey in the courthouse not far from here in dc to break up the phone company, breakup montebello, at t into a number of regional companies. Unleashed a lot of competition which drove down prices. Aol costs 10 an hour to be connected. Now pennies an hour because of broadband, wifi connections, things like that embedded in the flat rate. That only happened because of that judicial decision. If there wasnt one monopoly phone company we would not have seen competition or prices go down so thats another role of government and finally, congress. When we started it was illegal for businesses to connect to the internet at a time it was restricted to government use, Government Agencies and educational use so if you work for a Government Agency or a University Campus you could connect to the internet but everybody else, whether in their home or businesses could be connected. Congress passed the telecom act that commercialized access to the internet and the government decided in the early days theyre not quite sure how this is going to work so were going to adopt a relatively light touch in terms of regulation. Have a sales tax on ecommerce and things like that. Lets see how it felt and as a result it skyrocketed so it is an example of the government playing a central role in making the internet possible, ushering in this connected society but then having a relatively handsoff light touch approach to regulationthe question of the third wave is in the sectors like healthcare or energy or transportation, what is the right balance . But it was a struggle. We were the First Internet Company to go public. It was 1992 could read the natta for about a decade. With less than 200,000 customers after a decade. Its an example that sometimes revolutions happen and more evolutionary ways. You have to have perseverance. Sure in the first wave, not so much in the second one. Out for overnight successes. I think the third wave, because the dynamics are so fundamental around health care come in the partnerships may be more important than policy and will become more important. You also need more perseverance. They really do find the first wave. Partnership, policy and perseverance were so important in the second way but will become very important in the third wave. Thats part of the reason i wrote the book. I could write a book about the future telling stories from the past that confirm the future including the idea. Host why did you develop your in washington . A little bit biaxin in. As a mentioned, i was able to learn about a company that was used to restart up in the tyson corner area. They were doing a lot of people had a game machine, so the idea was to create a Communications Capability that connect the machines. Just as we are coming with a product, it kind of blew up, kind of imploded and it turned out to be unsuccessful. But because i was here and people at the company included as i mentioned were here as well. We started america on line with a little bit biaxin away it was here. In the first wave coming to d. C. Area played a pivotal role in making it impossible because of the fact that darpa that funded the internet was in Northern Virginia and a lot of Communications Innovators from nci were really quite significant role in that first wave. The second wave, Silicon Valley played the most significant role. Center of gravity shifted from networks and on ramps to software apps. The third wave i am hoping will distribute again and have more regional entrepreneurship and continue to be innovation in places like Silicon Valley and the rest of the country and ive been doing these bus tours now for a few years in pittsburgh, des moines, des moines, atlanta, minneapolis, st. Louis, authenticity is developing in there and started communities on the expertise they have been trying to attract that capital with ideas to scale and create the jobs in the communities that are so desperately needed. Host what are you funding out there beyond the coast . Guest its very encouraging. I wish more investors are sitting in new york city or San Francisco would get on planes in visit orange partners. They have great ideas, Great Companies starting to scale and some examples now really show breakout potential. Were in baltimore with under armour was started there. A relatively small company, now it has thousands of employees were 10, 15, 20 billion in indianapolis called exact target acquired by salesforce for 3 billion. Nearly 2000 employees now in indianapolis or detroit coach i know love that basically is trying to build and displace autoworkers basically unemployed, retrain them to build cars, watches and other products and they are growing like gangbusters at the story of american Orange Partnership is not just about tax and Silicon Valley. Its all respect as our economy all over the country. Make sure there are more investors and may be the Trump Administration will get focused on how you create investment incentives in the Capital Gains and things like that to invent more of the capital going to lunch printers and other places. Legislation introduced in a bipartisan way called the investing and opportunity act they did just that. It creates its own Capital Gains to invest in these emerging rising cities. The Trump Administration has denounced the american tech council. D. C. That is perhaps a mover . I applaud that. We need more constructive engagement between people doing innovative things in this third wave sectors in the administration. There are some criticize people like elon musk was criticized by some for engaging and i think its important. I want to have him in the room and make sure he is explaining to the president in the White House Team some of the challenges but opportunities in the third wave in hoping he is advocating for things whether the investment incentives for entrepreneurs or Immigration Reform so we can win what is now a global battle for talent. Anything the white house and president will reach out to innovators not just in Silicon Valley, but all over the country is a good thing and i encourage people who have interesting ideas and interesting perspectives about whats going happen in the future to make sure they did whether by the prizewinner folks in congress are regulators trying to figure out what the rules of the road should we. Back to your book, the third wave, one of the battles i would like to see and is the animosity that occurs between Silicon Valley and washington d. C. The nightcap, not the problem. Obviously some exceptions, a lot of people just dont want to engage and get frustrated by government cannot stifle innovation. Obviously the case. They are medical devices with the food systems or Energy Systems or transportation systems. It is not unreasonable the government would have some regulations around those industries. We need to make sure they are the right regulations. When a chef for the second way focus to a third way focus that is much more a fundamental part of fundamental life and there will be some regulations. We need more of a dialogue, build more bridges in places like Silicon Valley and people in the d. C. Area. We strike the right balance and figure out how to keep the bad stuff from happening. We dont want drugs to kill people. We dont want food to make her kids taken drums crashing inner kids playgrounds. Legitimate concerns we have peered at the same time, how do we make sure the United States has the Regulatory Framework that is friendly to entrepreneurs, friendly to innovators that innovation can happen here and we can create jobs and Economic Growth as opposed to having it someplace else. Host what is the vehicle used to invest in companies . Guest a . Guest im exiting the things. A Company Called revolution. Revolution ventures end quote than focusing on earlier age ventures. We talked about the speedups not startups. We travel around the country in meet the Angel Investments what are the companies the revolution has invested in that perhaps weve heard of. Some are still emerging. We invest in a company like this car 10 years ago, which is one of the first sharing company economies. It was later acquired quite rapidly. Also more recently someone in the food site or in the d. C. Area read about a decade ago and the guys coming out of georgetown with healthier options with a casual restaurant concept is growing quite rapidly. First in d. C. , new york, San Francisco, starting to spread around the country. More recently we invested in detroit in another company in chicago. Around precision data, moving to the United States. Its United States. Its a mix of different sectors we focus on on the venture side in the growth. But the key focus for us is how do we make sure that entrepreneurs everywhere really do have access to capital and do what we can do shine not just the spotlight, but hoping that will attract other investors to Pay Attention as well. Another vehicle called the case foundation. My wife jean started running it around a few years ago. They focus on overtime and things like Digital Divide. More recently we focused on things like inclusive entrepreneurship. We launched an initiative called face of the founders. We are backing the whole concept of impact investing. How do you encourage more investors to companies that dont just focus on profit but also on purpose, impacted measure that impact. They run benefit corporations that build the impact with purpose into their charter in Civic Engagement as a way for millennium rolls. Steve case, the third wave is part biography as well. When you are developing a a while, what was your relationship with steve jobs . Guest in the early days it was unusual. He had just been fired by apple and was focused on his next company. When he came back in and his company was acquired by apple became the ceo, we engaged more and worked on a number of initiatives in Digital Music and the iconic orange for noise that led the way and put in place apple, for example will be more focused on things Like Health Care and the approach apple has around software and services and design to help revolutionize the health care system. Even though we lost steve, some of the instincts he had come insights he had an round innovation will carry on in the years ahead. Theres an incident in the book where the Apple Corporation puts you in your office in a catatonic state for a while. It was the late 80s theater strategy when we get started at aol was 1 million a competitor at the time this prodigy backed by ibm and they had 1 billion. We knew we couldnt compete headtohead. We had partnership attendee, radioshack, ibm and something called apple with a venture between end it was the first time apple ever licensed their brandname. After a year or so, they decided maybe that was a mistake. They want a salad and apple stores and things like that. We want to tear up the contract. We dont like the idea of that service anymore or at least the partnership with you. Someone in the company thought we thought you were going to make it. We come up with a new brand name so we ended up calling at America Online than the rest is history. That ended up instead of being near disaster ended up being a catalyst that drive the next wave of our growth. Host who was Elwood Edwards . Guest hes pretty famous. At least his voice is famous. He recorded on our software at things like youve got mail in the messages. He was the husband of a woman who worked in our Customer Service department in the late 80s and overheard me talking about how we make this internet see more engaging, more friendly, more approachable, not as tacky as it was perceived to be 30 years ago. Maybe we should add real voice is so when you kind of cannot do her service they would say while carmen say youve got mail and felt more personal. So my husband elwood does the radio voiceover work and im sure hed be happy to record something. I wrote down a bunch of these things like youve got mail and some others events. Took them home in the next morning came in with cassette tapes. We have the perfect voice with the software and a few months later. Host what was the toughest year of your life businesswise . Guest where russia time warner is part of that. I stepped aside for more than a decade. More backseat than just been on the board as chair of the company, but not running the company daytoday. Its been well reported the merger didnt work well. The idea that a lot of sense, but the execution didnt. I quoted this great Thomas Edison quote from a century ago. Execution without vision is hallucination. It was frustrating for everybody involved, certainly for me because i have this passion for this idea of companies and what together they could do, but we couldnt get out of our own way and i decided to step aside and thats when i started revolution, and better. I started back in the next generation of entrepreneurs. Host what close with Daniel Samuelson of politico who you quote in your book. The government doesnt have any single mechanism to address the internet of things are the challenges is presenting. When the concerns i have, which is why when the paperback version came out recently had a whole new chapter for a call to restart agenda to make sure america can lead the way because right now i dont think there is an appreciation of some of the challenges and opportunities that present themselves. Theres no fragmented approach to regulation that mightve worked in the past, but i dont think will work in the future. It requires an integrated system approach because something is involved, for example, in the financial world. Some things are technology issues. Also things that are Financial Services issue with the more decorated view of god is also true in health care. We have to take a step back and figure out a way to make sure weve got the right Regulatory Framework, policy frameworks of this country can lead the way in the third wave. I hope we can. I think we cant undermine people in d. C. At 250 years ago america itself was a star to appear just an idea. We lead the way in the agricultural revolution, the industrial revolution, the Technology Revolution. We need to lead the way in the next revolution that will require getting this right and some of that is working constructively with policymakers that we have a more cohesive approach to Public Policy for the third wave. Host the third wave of the future is the book. Steve case is the author. We are at the famous bridge in tacoma, washington in tacoma, washington is located on the shores of command that day, which was the Northern Pacific railroad as it was chartered abraham lincoln. This whole community owes its existence to the railroad. Welcome to tacoma, washington on booktv with the help of our Comcast Cable partners, for the next two hours well talk with local authors as we explore the history and literary