WEBVTT - Bloomberg Businessweek Weekend - July 4th, 2025 0:00:02.759 --> 0:00:07.240 Bloomberg Audio Studios, Podcasts, radio News. 0:00:08.640 --> 0:00:13.000 This is Bloomberg business Week Daily reporting from the magazine 0:00:13.000 --> 0:00:17.599 that helps global leaders stay ahead with insight on the people, companies, 0:00:17.640 --> 0:00:22.520 and trends shaping today's complex economy. Plus global business finance 0:00:22.560 --> 0:00:25.880 and tech news as it happens. The Bloomberg Business Week 0:00:25.960 --> 0:00:31.320 Daily Podcast with Carol Masser and Tim Steneveek on Bloomberg Radio. 0:00:32.120 --> 0:00:35.080 Hi, everyone, Welcome to the Bloomberg Business Week Weekend Podcast 0:00:35.360 --> 0:00:38.520 and a very happy fourth of July. Well just about 0:00:38.520 --> 0:00:41.360 one week ago, we were live in Southampton, Long Island 0:00:41.600 --> 0:00:44.879 at the Uncharted Community Summit. It's an annual gathering of 0:00:44.920 --> 0:00:49.080 over five hundred members of the entrepreneurial community, and over 0:00:49.120 --> 0:00:51.199 the next two hours we will bring you some of 0:00:51.240 --> 0:00:54.640 our favorite conversations from that event. We'll hear from voices 0:00:54.680 --> 0:00:57.320 on artificial intelligence. In fact, I felt like everybody had 0:00:57.360 --> 0:01:00.720 a view when it came to AI. We talked capital 0:01:00.760 --> 0:01:04.360 markets and women's health. Plus we sit down with a shark. 0:01:04.800 --> 0:01:06.920 First up, though, we caught up with one of the 0:01:06.959 --> 0:01:10.039 co founders of the event, I've Uncharted and the man 0:01:10.120 --> 0:01:14.520 whose backyard we were literally broadcasting from. He is Michael Loebe, 0:01:14.520 --> 0:01:18.320 founder and CEO of lob dot NYC, who started off 0:01:18.360 --> 0:01:21.440 by telling us why this event is so important. 0:01:21.840 --> 0:01:23.720 If you were to take a look at the background, 0:01:23.760 --> 0:01:26.480 you would see, you know, six hundred people talking to 0:01:27.840 --> 0:01:32.120 six hundred other people. It's quite the event. And what 0:01:32.200 --> 0:01:36.520 we really want to do is foster relationships between investors 0:01:36.520 --> 0:01:41.600 and companies, between companies and companies, and between you know, 0:01:41.720 --> 0:01:45.319 CEOs looking for talent and talent looking for CEOs. So 0:01:45.920 --> 0:01:48.800 I think I think a good time is being had 0:01:48.840 --> 0:01:49.240 by all. 0:01:49.440 --> 0:01:51.200 You know, an event like this. You've been doing this 0:01:51.240 --> 0:01:53.480 for a few years and started during the pandemic, started 0:01:53.480 --> 0:01:56.320 a lot smaller. How do you and I heard you say, 0:01:56.400 --> 0:01:58.960 and your partner say this too, Noah, that he is 0:01:59.040 --> 0:02:01.840 running into people say, yeah, they raised money as a 0:02:01.840 --> 0:02:04.280 result of being here. They found a co founder here, 0:02:04.440 --> 0:02:07.560 they found employees here. How do you measure the success 0:02:07.840 --> 0:02:09.880 of an event such as this in the days, weeks 0:02:09.880 --> 0:02:10.720 and months following it? 0:02:10.840 --> 0:02:12.760 Right? I wish we could because I should have a 0:02:12.800 --> 0:02:13.720 big on all that. 0:02:14.639 --> 0:02:16.320 Yet you don't know it for a long time. 0:02:17.720 --> 0:02:20.640 So you know, I got to tell you we do 0:02:20.840 --> 0:02:24.800 solicit testimonials of exactly the things that you're talking about. 0:02:24.800 --> 0:02:27.680 We have quite a few of people saying, you know, 0:02:27.880 --> 0:02:32.359 I met my founder there about two years ago. Uh no, 0:02:32.520 --> 0:02:36.480 and I get an invitation and it was shrouded in mystery, 0:02:36.560 --> 0:02:39.400 and it was three women who had us go to 0:02:39.960 --> 0:02:44.119 an event downtown and they brought us up on stage. 0:02:44.520 --> 0:02:47.320 Everybody started a collap And what that was is these 0:02:47.360 --> 0:02:50.520 were three women never met before. They were all, you know, 0:02:50.720 --> 0:02:54.680 elite athletes, and they decided there should be a fund 0:02:55.520 --> 0:02:59.000 supporting elite athletes that they had a different point of view, 0:02:59.480 --> 0:03:02.960 a different sense of how to compete, and they all 0:03:03.040 --> 0:03:06.240 got along very very well. And that thesis led to 0:03:06.320 --> 0:03:08.640 a fifty million dollar fund. So it's that type of 0:03:08.639 --> 0:03:10.680 thing that you know, really propels us. 0:03:10.760 --> 0:03:12.639 Well, talk to us about you know capital, How much 0:03:12.720 --> 0:03:13.799 is out there for startups? 0:03:13.840 --> 0:03:17.320 Wow? You know it's funny things go in cycles. As 0:03:17.360 --> 0:03:21.840 you know, this is not an up cycle for capital formation. 0:03:23.200 --> 0:03:26.680 Last numbers I looked at and they're a little bit stale, 0:03:26.720 --> 0:03:30.320 but you know, down sixty or seventy percent. Certainly the 0:03:30.440 --> 0:03:35.040 secondary market, if that's any indication at all, does illustrate that, 0:03:35.320 --> 0:03:38.480 you know, there's a lot of ill liquidity looking to 0:03:38.520 --> 0:03:43.560 get liquid, not nearly as frothy as it used to 0:03:43.560 --> 0:03:46.840 be was IPOs, even though that's starting to unlock a 0:03:46.840 --> 0:03:50.120 little bit. So no, it's it is hard and the 0:03:50.200 --> 0:03:54.160 money does gravitate these days to AI, so you need, 0:03:54.200 --> 0:03:54.760 you know, if you have. 0:03:54.760 --> 0:03:56.840 So when there is an idea, when there is a startup, 0:03:56.840 --> 0:03:57.480 that's where it goes. 0:03:57.640 --> 0:04:02.320 It goes there, right. And what folks don't I think, 0:04:02.360 --> 0:04:07.120 really realize or appreciate is the forces at play in 0:04:07.360 --> 0:04:11.480 venture and venture funding and venture capital, which is I 0:04:11.560 --> 0:04:14.800 sometimes call it a beauty contest, and that is because 0:04:14.840 --> 0:04:18.719 there's one breakout winner in a category and then all 0:04:18.760 --> 0:04:22.640 the LPs are asking their gps, you know, what is 0:04:22.720 --> 0:04:25.800 your AI strategy? And if the answer is you know, 0:04:25.880 --> 0:04:27.960 we think it's a little over sold. We think it's 0:04:28.000 --> 0:04:30.960 a little bit you know, frothy. Whereas there's going to 0:04:31.040 --> 0:04:33.560 be a couple of winners and a lot of losers, 0:04:33.720 --> 0:04:36.760 weird taking a wait and see attitude. The answer is 0:04:36.839 --> 0:04:39.120 bye bye, I'm bringing my money to that fund that 0:04:39.240 --> 0:04:42.000 made that investment, so a lot of pressure for them 0:04:42.040 --> 0:04:46.039 to jump in. And it's in those situations that you know, 0:04:46.279 --> 0:04:48.480 not so good deals are made. Right. 0:04:48.720 --> 0:04:51.840 So yeah, does it you know, in terms of cycles, 0:04:51.880 --> 0:04:54.200 does it feel like this AI cycle is different than 0:04:54.279 --> 0:04:57.000 previous tech hype cycles. And the reason I ask and look, 0:04:57.040 --> 0:04:58.920 nobody wants to hear or utter the phrase this time 0:04:59.000 --> 0:05:00.560 is different. But it If you look out at the 0:05:00.560 --> 0:05:03.840 private markets right now, you've got skyhag evaluations. I think 0:05:03.839 --> 0:05:09.719 many would argue for open AI right, for anthropic, for perplexity. 0:05:10.400 --> 0:05:13.200 You have meta platforms coming in and dropping billions of 0:05:13.200 --> 0:05:15.600 dollars to buy forty nine percent of an AI company 0:05:15.600 --> 0:05:19.200 that barely existed. You have founders being poached. We're talking 0:05:19.279 --> 0:05:24.640 one hundred million dollar signing bonuses. Yeah, force an individual 0:05:24.760 --> 0:05:26.320 to go to a large company. 0:05:26.640 --> 0:05:29.400 Right. So I'm I look at my mailbox every day. 0:05:29.480 --> 0:05:31.800 I'm looking for one hundred million dollar check hasn't come 0:05:31.839 --> 0:05:34.720 in yet. Right to me, it feels different. Now, what 0:05:34.760 --> 0:05:38.080 does it feel like? I've been around for long enough, 0:05:38.880 --> 0:05:41.800 so I'm something of the elder statement here, statesman here, 0:05:42.960 --> 0:05:45.360 I've been around long enough that I've seen a few cycles. 0:05:46.120 --> 0:05:49.200 This feels like the late nineties and the late nineties 0:05:49.279 --> 0:05:51.760 was the advent of the internet, right, and it feels 0:05:51.880 --> 0:05:57.279 this profound now. You know, people can say, well, you know, 0:05:57.320 --> 0:05:59.000 if we look back two or three years, it was 0:05:59.440 --> 0:06:02.240 NFT and that was a false positive, and before that 0:06:02.720 --> 0:06:05.600 it was blockchain, which was sort of a false positive. 0:06:05.600 --> 0:06:08.160 And before that it was cannabis, and before that it 0:06:08.200 --> 0:06:13.280 was bitcoin. But this one feels real, and this adds 0:06:13.360 --> 0:06:18.600 the possibility of disrupting entire industries. I had breakfast, by 0:06:18.600 --> 0:06:21.640 the way, with a friend. He has a unicorn business 0:06:21.760 --> 0:06:24.080 is worth almost two billion dollars. He has two hundred 0:06:24.120 --> 0:06:26.920 and seventy people, and he said, Michael, by year end, 0:06:27.080 --> 0:06:28.120 it's one hundred and twenty. 0:06:28.400 --> 0:06:31.640 That's Michael Loebe, founder and CEO of Lobe dot NYC, 0:06:31.800 --> 0:06:34.440 and got to say a very very gracious host. We 0:06:34.520 --> 0:06:38.080 turned out to his Uncharted Community Summit colleague and co founder, 0:06:38.160 --> 0:06:41.880 Noah Friedman. He's the CEO of the organization, and he 0:06:41.960 --> 0:06:44.720 told us why this event is also so special. 0:06:45.080 --> 0:06:46.640 The most important thing in the truth of what I 0:06:46.760 --> 0:06:48.640 charge is all about is what's happening right now, which 0:06:48.680 --> 0:06:50.560 is people just mingling and met to each other. What 0:06:50.600 --> 0:06:53.040 we really care about here and what gets me excited 0:06:53.080 --> 0:06:55.680 as an entrepreneur is environment when I can kind of 0:06:55.680 --> 0:06:57.560 go up to anybody, shake their hand and say hello, 0:06:57.600 --> 0:07:00.200 and trust that they're going to be friendly knight and 0:07:00.240 --> 0:07:02.880 more important, someone who I can build with so I 0:07:03.040 --> 0:07:04.680 like to think that's what happened behind me, and I'll 0:07:04.680 --> 0:07:07.200 get the verdict from you guys and everyone else afterwards. 0:07:07.200 --> 0:07:08.040 If we did our jobs. 0:07:08.120 --> 0:07:10.920 What's being built right now in the startup ecosystem. 0:07:11.280 --> 0:07:13.320 Look, everything with the word AI in it is getting 0:07:13.320 --> 0:07:14.720 a ton of attention. I think there's a lot of 0:07:14.720 --> 0:07:16.080 big we talked about this show. I think there's a 0:07:16.080 --> 0:07:17.720 lot of businesses that don't have the word AI in 0:07:17.800 --> 0:07:19.760 m that are still remarkable companies that are getting a 0:07:19.760 --> 0:07:22.480 shockingly low amount of attention. And so you have this 0:07:22.560 --> 0:07:25.120 bar bell happening. I particularly am kind of on both 0:07:25.120 --> 0:07:27.400 sides of it. Right My find invests in alcohol and 0:07:27.440 --> 0:07:29.680 consumer device, which is, you know there's some AI, but 0:07:29.720 --> 0:07:31.800 that's pretty antithetical. And on the other side, I'm personally 0:07:31.840 --> 0:07:34.440 investing in trying to start companies in the AI space 0:07:34.440 --> 0:07:37.000 as well. Most of the people here, I can guarantee 0:07:37.000 --> 0:07:38.440 you if you ask them what's on your mind or 0:07:38.480 --> 0:07:40.160 now as a founder, AI is going to be obvious, 0:07:40.200 --> 0:07:43.440 and it's a natural. It's a natural thing to say, 0:07:43.680 --> 0:07:45.040 and I think that's top of mind for a lot 0:07:45.040 --> 0:07:45.840 of founders right now. 0:07:46.480 --> 0:07:48.400 When everybody's saying that, I think this is something do 0:07:48.520 --> 0:07:50.240 we talk about it with Michael or I'm trying to 0:07:50.280 --> 0:07:53.200 think We've had so many good conversations here this idea 0:07:53.240 --> 0:07:55.520 that there's just so much coming at us with an 0:07:55.560 --> 0:07:58.120 AI connection. But ultimately the dust is going to settle. 0:07:58.160 --> 0:07:59.920 There's going to be some really big winners and losers. 0:08:00.120 --> 0:08:01.960 How do you, as an investor who's also looking at 0:08:02.000 --> 0:08:04.880 these opportunities or an entrepreneur trying to start something up, 0:08:04.880 --> 0:08:06.240 how do you figure out which way to go? 0:08:06.320 --> 0:08:08.120 It's a great question. Look, I think that there's an 0:08:08.200 --> 0:08:10.480 unbelievable power law that's playing out here. I've said this 0:08:10.560 --> 0:08:12.000 a lot, and I'm going to continue to say it. 0:08:12.040 --> 0:08:14.200 I think that despite the fact that there is about 0:08:14.200 --> 0:08:17.040 to be so much money made in AI, an unbelievable 0:08:17.080 --> 0:08:19.600 title wave of innovation and opportunity, there's a lot of 0:08:19.600 --> 0:08:21.440 people who are going to get absolutely smoked, right, And 0:08:21.480 --> 0:08:23.000 the reason for that is that there's a lot of 0:08:23.040 --> 0:08:25.800 people who, out of necessity, based on funds that have 0:08:25.840 --> 0:08:27.960 raised money from LPs that are expecting them deploy, aren't 0:08:27.960 --> 0:08:31.080 trying to rush into arounds for businesses with basically a 0:08:31.120 --> 0:08:33.280 deck and an idea at fifty million dollars pre money 0:08:33.360 --> 0:08:37.000 valuations or sometimes even higher. Sometimes that will work, often 0:08:37.040 --> 0:08:38.880 it will not. And so I think that you have 0:08:38.920 --> 0:08:41.880 an interesting dynamic now where founders have a ton of 0:08:41.880 --> 0:08:43.720 power if they're willing to build an AI and I 0:08:43.720 --> 0:08:45.679 think that that plays nicely to the founder. So as 0:08:45.720 --> 0:08:48.199 an investor, as an entrepreneur, I'm thinking about how I 0:08:48.240 --> 0:08:50.880 can create leverage out of myself, use AI tools to 0:08:50.920 --> 0:08:53.160 get more out of Noah, more out of a small team, 0:08:53.200 --> 0:08:56.080 and create unbelievable levels of efficiency. But I think, like 0:08:56.200 --> 0:08:59.640 entrepreneurship as a whole, AI really is going to expose people. 0:08:59.679 --> 0:09:01.800 It's a aritocracy. If you are good enough to figure 0:09:01.840 --> 0:09:04.280 out how to use AI, there's an unbelievable opportunity at 0:09:04.280 --> 0:09:04.760 hand right now. 0:09:04.760 --> 0:09:07.240 There's been a lot of talk of AI today, talk about. 0:09:07.000 --> 0:09:07.800 Booze, let's do it. 0:09:08.280 --> 0:09:11.200 I'm into it. I'm curious about the where you see 0:09:11.200 --> 0:09:14.040 opportunity right now because we're seeing a real rise in 0:09:14.120 --> 0:09:17.560 non alcoholic beers, non alcoholic drinks. I mean, it's not 0:09:17.600 --> 0:09:19.880 weird to go and order a mocktail anymore. It used 0:09:19.880 --> 0:09:22.079 to be something that like kids did at bar and 0:09:22.120 --> 0:09:25.120 bought mitzvahs, but like that's actually happening in bars around 0:09:25.160 --> 0:09:27.880 New York City. What are the other vices and vice 0:09:27.960 --> 0:09:30.800 type categories that you're investing in, because it seems like 0:09:30.800 --> 0:09:32.840 there's this really movement away from vice. 0:09:33.320 --> 0:09:34.360 So I'll tell you right now. 0:09:34.440 --> 0:09:37.320 I have a potentially controversial opinion that the notion of 0:09:37.320 --> 0:09:40.120 betting against alcohol is a bad idea. I think alcohol, 0:09:40.160 --> 0:09:42.400 for a long time has proven that is remarkably resilient. 0:09:42.440 --> 0:09:43.800 This is not the first time and it won't be 0:09:43.840 --> 0:09:45.880 the last time that we hear headlines indicate that no 0:09:45.880 --> 0:09:47.679 one's drinking anymore. It is just not true. If you 0:09:47.720 --> 0:09:51.040 take the actual trajectory of alcohol consumption and sales over 0:09:51.040 --> 0:09:53.520 the last fifty years, it basically was a straight line 0:09:53.600 --> 0:09:55.400 north every single year, where the only thing we knew 0:09:55.440 --> 0:09:57.000 is that it was going to be higher next year 0:09:57.000 --> 0:09:59.240 than it was a previous year. In COVID, it's spiked 0:09:59.280 --> 0:10:01.720 like crazy every but he started drinking like fish, and 0:10:01.800 --> 0:10:04.560 everything went to the moon until all the manufacturers made more, 0:10:04.600 --> 0:10:07.200 the distributors bought more, the retailers ordered work as consumers 0:10:07.200 --> 0:10:10.080 were buying more, and then lockdown's ended and people said, 0:10:10.080 --> 0:10:12.880 you know what, I should get healthy, I should try longevity. 0:10:12.880 --> 0:10:15.440 I should focus on saunas and optimizing my sleep. I 0:10:15.440 --> 0:10:17.160 think that's a moment in time. I believe in the 0:10:17.160 --> 0:10:20.040 longevity space. But we've had a slight dip in all 0:10:20.080 --> 0:10:23.160 time high which has created this compression in the market 0:10:23.200 --> 0:10:25.599 where it's creating all these headlines under the indication that 0:10:25.640 --> 0:10:27.720 people are not drinking more. It's really just a reset. 0:10:27.800 --> 0:10:29.360 And if you actually look at the sales in twenty 0:10:29.360 --> 0:10:31.480 twenty four and twenty twenty five, they're higher than they 0:10:31.480 --> 0:10:34.640 were in twenty nineteen. So my personal hypothesis, and we're 0:10:34.640 --> 0:10:37.560 investing accordingly, is that yes, non OUC is real, it's interesting, 0:10:37.880 --> 0:10:40.440 but who's is and will continue to be a deeply 0:10:40.440 --> 0:10:43.199 important part of the American and global psyche economy and 0:10:43.240 --> 0:10:45.200 so many other things. I also think at the same time, 0:10:45.480 --> 0:10:48.960 nicotine pouches super super interesting, huge opportunity there. We're investing 0:10:49.240 --> 0:10:53.720 THHC beverages, huge opportunity there. So look, consumers and humans 0:10:53.720 --> 0:10:56.040 at the most fundamental level, put the market to side. 0:10:56.040 --> 0:10:58.880 They need escapism, they need social connectivity, they need connection. 0:10:59.000 --> 0:11:02.320 And until there's other commercially reasonable and available things like 0:11:02.360 --> 0:11:04.640 alcohol and nicotine and THHCH that can solve for it, 0:11:05.040 --> 0:11:06.200 there's gonna be a lot of money to be made 0:11:06.240 --> 0:11:06.959 in those spaces, all. 0:11:06.960 --> 0:11:09.959 Right, but something like non alcoholic beer, I mean substantial 0:11:09.960 --> 0:11:11.959 growth some reports indicating and you're like four hundred and 0:11:12.000 --> 0:11:14.600 fifteen percent increase from twenty eighteen to twenty twenty four 0:11:14.640 --> 0:11:16.320 in retail sales. And mind you, it's coming from maybe 0:11:16.559 --> 0:11:18.440 a smaller bottom. But having said that, are you not 0:11:18.520 --> 0:11:19.360 playing in that space? 0:11:20.280 --> 0:11:22.280 We haven't yet. I think if I had to guess 0:11:22.320 --> 0:11:24.439 in my in my funds, I think we'll make a 0:11:24.480 --> 0:11:26.600 couple a couple bets in the space. I just think 0:11:26.679 --> 0:11:31.400 I think it behaves distinctly differently than traditional alcohol and vice. 0:11:31.480 --> 0:11:33.640 I think there is a market for it. My personal 0:11:33.679 --> 0:11:35.960 bet is that we are probably near the top. I 0:11:35.960 --> 0:11:37.600 do think any beer is going to continue to grow. 0:11:37.600 --> 0:11:39.560 I think NA beer is probably the best use case 0:11:39.559 --> 0:11:41.760 for it. I think NA cocktails are a little bit tougher. 0:11:41.840 --> 0:11:44.160 NA wine's a little bit tougher. I don't quite get it. 0:11:44.240 --> 0:11:46.240 On the nicotine pouches. Yeah, you know, I've heard of 0:11:46.280 --> 0:11:48.880 some of the sort of direct consumer startups like Lucy's 0:11:48.920 --> 0:11:49.520 for example. 0:11:49.559 --> 0:11:50.280 We're investors. 0:11:50.360 --> 0:11:51.240 How do you compete with Zen? 0:11:51.320 --> 0:11:51.480 Though? 0:11:51.520 --> 0:11:53.800 I mean we're talking Philip Morris International, We're talrying about. 0:11:53.679 --> 0:11:55.719 We're talking about billions and billions of dollars. Yeah, Zen 0:11:55.840 --> 0:11:58.280 is the ten thousand pound grill in the room. They 0:11:58.280 --> 0:11:59.480 have more money than they know what to do with 0:11:59.520 --> 0:12:01.760 the reality and this goes into a fundamental thesis I 0:12:01.840 --> 0:12:05.040 have consumers are inherently promiscuous. I think they're excited to 0:12:05.080 --> 0:12:06.920 try new things. When you have a market that is 0:12:07.840 --> 0:12:09.600 and is going to continue to be as big as 0:12:09.679 --> 0:12:12.520 nicotine pouches are, there just has to be room for more. 0:12:12.559 --> 0:12:14.640 And so my thesis in bed is that, yes, Philip 0:12:14.679 --> 0:12:17.439 Morris has crushed it. Unbelievable acquisition was in and they're 0:12:17.480 --> 0:12:20.120 doing a great job. By definition, all the other big 0:12:20.120 --> 0:12:22.640 tobacco players and even I'm willing to bet that a 0:12:22.640 --> 0:12:24.880 lot of the booze companies as well are going to say, 0:12:24.880 --> 0:12:27.080 you know what, this is a huge market that behaves 0:12:27.120 --> 0:12:29.600 similarly to alcoholm Anyways, we need to play there. 0:12:29.640 --> 0:12:33.280 Thanks to Uncharted's Noa Friedman and Michael Lobe, coming up 0:12:33.320 --> 0:12:36.120 on Bloomberg Business Week more of our favorite conversations from 0:12:36.160 --> 0:12:40.400 the Uncharted Community Summit that was held just recently in Southampton, 0:12:40.400 --> 0:12:43.560 Long Island. It's an annual event up next as serial 0:12:43.679 --> 0:12:47.840 entrepreneur involved in the early days of the changing fintech landscape. 0:12:47.960 --> 0:12:51.440 You know, such things as PayPal and into It. Bill 0:12:51.480 --> 0:12:53.680 Harris is coming up next. This is Bloomberg. 0:12:56.080 --> 0:13:00.000 You're listening to the Bloomberg Business Weekdaily podcast. Catch us 0:13:00.200 --> 0:13:03.600 live weekday afternoons from two to five pm Eastern. Listen 0:13:03.640 --> 0:13:07.200 on Apple CarPlay and Android Auto with the Bloomberg Business app, 0:13:07.360 --> 0:13:09.760 or watch us live on YouTube. 0:13:10.600 --> 0:13:13.520 This is a special holiday edition of Bloomberg BusinessWeek, featuring 0:13:13.559 --> 0:13:17.280 some of our favorite conversations from the Uncharted Community Summit 0:13:17.320 --> 0:13:20.040 held recently in Southampton, Long Island. And I got to 0:13:20.080 --> 0:13:22.239 say this. Next guest needs no introduction. 0:13:22.679 --> 0:13:25.000 Okay, you promised. We talked to a serial entrepreneur who 0:13:25.000 --> 0:13:27.520 has a ton of experience in the fintech space. I 0:13:27.520 --> 0:13:30.120 want to bring in Bill Harris. He's a longtime fintech executive. 0:13:30.360 --> 0:13:34.040 He's founded or led several personal finance companies, think from 0:13:34.080 --> 0:13:36.640 companies such as into It, PayPal as well. He was 0:13:36.679 --> 0:13:40.120 the founding CEO there. He ran TurboTax, he founded personal Capital, 0:13:40.360 --> 0:13:42.240 you remember just a few years ago that was bought 0:13:42.280 --> 0:13:45.559 by Empower. Right, so he knows a thing or two 0:13:45.720 --> 0:13:49.600 about yeah, how people are using these apps these days, 0:13:49.679 --> 0:13:50.400 all right, now. 0:13:50.280 --> 0:13:52.720 That the event is underway. I'm just curious anybody you've 0:13:52.720 --> 0:13:55.559 talked to, any interesting conversations that you've had so far? 0:13:55.840 --> 0:13:57.400 Well, sure, you know. 0:13:57.440 --> 0:14:00.080 The most interesting fella here is, of course Michael Lobe, 0:14:00.280 --> 0:14:03.160 and I've known him actually for now. 0:14:03.240 --> 0:14:06.280 I talked to him just a moment ago. Forty years wow, 0:14:06.320 --> 0:14:07.080 forty years ago. 0:14:07.120 --> 0:14:09.839 We worked together in the magazine industry, which of course 0:14:09.880 --> 0:14:11.079 is no longer, but. 0:14:11.960 --> 0:14:14.720 In a subscription business, right that Time Warner bought. 0:14:14.880 --> 0:14:15.360 That's right. 0:14:15.440 --> 0:14:18.880 But first we worked together at Time Ink and then 0:14:19.360 --> 0:14:21.720 he left to go build the subscription business that he 0:14:21.800 --> 0:14:23.400 sold back to Time Inc. 0:14:24.280 --> 0:14:26.560 Kind of fascinating. I just can we just go there 0:14:26.560 --> 0:14:29.040 for a minute. Media, the changes that we have seen 0:14:29.600 --> 0:14:33.680 in content production where you get it, I don't know 0:14:33.760 --> 0:14:37.240 who'd have thought. I mean, I used to do subscriptions, 0:14:37.520 --> 0:14:40.080 right in terms of magazines and various newspapers. We don't 0:14:40.120 --> 0:14:41.920 do that anymore. Where do you think it's all going? 0:14:42.680 --> 0:14:45.920 Well, it's you know, finance and media are the two 0:14:46.000 --> 0:14:50.680 industries most profoundly changed by digital technology. Yeah, because they 0:14:50.720 --> 0:14:55.560 are all just figments of our imagination, and you can 0:14:55.600 --> 0:14:59.320 create them with no assets, just your mind. And so 0:15:00.440 --> 0:15:04.440 you know what happened though, is that media. The tsunami 0:15:04.560 --> 0:15:09.480 of digitization hit media fast, and old media came crumbling down, 0:15:09.640 --> 0:15:12.960 and new media obviously has just done nothing but the 0:15:13.880 --> 0:15:18.200 upward tilt. It has not yet happened, generally speaking, in 0:15:18.240 --> 0:15:21.960 financials and services, and you still have the same fifty 0:15:22.040 --> 0:15:24.280 year old, one hundred year old, one hundred and fifty 0:15:24.320 --> 0:15:28.720 year old firms that dominate, and so that industry is 0:15:28.800 --> 0:15:30.840 now ripe for digitization. 0:15:31.080 --> 0:15:34.280 A lot of folks are working to digitize that industry. 0:15:34.400 --> 0:15:36.920 You've been working in that for decades at this point. 0:15:37.000 --> 0:15:40.080 But it's a very lucrative industry. It's also very sticky 0:15:40.120 --> 0:15:42.320 when it comes to the way people manage their assets. 0:15:42.360 --> 0:15:45.200 They don't want to move advisors, they don't want to 0:15:45.240 --> 0:15:48.840 move firms. They I think, especially high net worth individuals, 0:15:48.880 --> 0:15:51.480 still feel like they want somebody to talk to and 0:15:51.520 --> 0:15:54.520 that service comes with fees eighty basis points, one hundred 0:15:54.520 --> 0:15:57.360 and twenty basis points. Those fees eat into returns. This 0:15:57.400 --> 0:15:59.640 is something that you've been working on for years. You 0:15:59.640 --> 0:16:01.600 did it at Personal Capital, Yes, what are you doing 0:16:01.600 --> 0:16:02.520 now at Evergreen Wealth? 0:16:03.240 --> 0:16:06.480 We're doing two things. We're doing wealth management. 0:16:06.520 --> 0:16:10.760 Wealth management for people who have let's say investable assets 0:16:10.800 --> 0:16:14.080 of a million to five and these are people who 0:16:14.360 --> 0:16:17.680 don't get the kind of white glove service that people 0:16:17.720 --> 0:16:20.800 who have ten twenty one hundred million dollars do. And 0:16:20.880 --> 0:16:23.680 so what they need is somebody who can take the 0:16:24.040 --> 0:16:28.560 tax and investment principles that the people who have more 0:16:28.600 --> 0:16:31.680 money utilize because they have tax attorneys and all the rest, 0:16:32.200 --> 0:16:35.240 and then look for someone who can use technology to 0:16:35.280 --> 0:16:39.240 make that scalable and in fact precision engineering to make 0:16:39.280 --> 0:16:43.640 it even better than traditional wealth managers deliver. If we 0:16:43.680 --> 0:16:46.000 do that, we can give them better pre tax return 0:16:46.200 --> 0:16:49.080 and then better after tax return, because that's the thing 0:16:49.080 --> 0:16:50.600 that everyone forgets. 0:16:50.840 --> 0:16:52.040 Can everybody benefit by this? 0:16:52.960 --> 0:16:59.920 Yes, absolutely, everyone who has sufficient resources that the tax 0:17:00.120 --> 0:17:04.680 impact is meaningful. And so a couple of one hundred 0:17:04.720 --> 0:17:06.960 thousand dollars to a couple of million dollars, yes, you 0:17:07.000 --> 0:17:11.440 should absolutely be managing your investment portfolio in a tex 0:17:11.560 --> 0:17:12.400 aware way. 0:17:13.080 --> 0:17:16.480 You're the founding CEO of PayPal. We talk a lot 0:17:16.520 --> 0:17:19.600 about the PayPal mafia. Those folks we've spoken to Read Hoffman, 0:17:19.800 --> 0:17:23.840 David Sachs. These guys really don't need any introduction. Elon Musk, 0:17:23.920 --> 0:17:26.159 of course, is among them to what extent are these 0:17:26.200 --> 0:17:27.760 folks still in your universe right now? 0:17:28.080 --> 0:17:31.240 Well, for the most part, we've gone separate ways. Even 0:17:31.640 --> 0:17:35.640 many of the people within within the so called mafia. 0:17:36.560 --> 0:17:39.520 I've moved from Silicon Valley to Miami, so I have 0:17:39.640 --> 0:17:41.720 sort of a new set of people. 0:17:41.480 --> 0:17:42.159 That I'm working at. 0:17:42.160 --> 0:17:45.160 Them have too somehow, Yes, that's right. 0:17:45.480 --> 0:17:47.800 And some of them have moved back to San Francisco too. 0:17:47.840 --> 0:17:50.440 There maybe Texas some of them as well. Yeah, okay, 0:17:50.440 --> 0:17:53.520 so on that and sort of on payments. Yes, I 0:17:53.520 --> 0:17:56.120 thought of you the other day because the crypto firm 0:17:56.200 --> 0:18:01.040 Kraken Yes, is launching this competitor to to Venmo into 0:18:01.119 --> 0:18:05.520 the cash app, essentially using the blockchain to transfer money. 0:18:05.800 --> 0:18:08.040 And I'm wondering how you look at that as somebody 0:18:08.080 --> 0:18:12.640 who really pioneered technology for sending money over the internet. 0:18:13.280 --> 0:18:16.040 Is the blockchain? Is crypto really going to disrupt that? 0:18:16.760 --> 0:18:19.520 I think the blockchain is very good for some purposes. 0:18:19.560 --> 0:18:25.000 I don't have much use for cryptocurrency, because we have 0:18:25.280 --> 0:18:28.000 plenty of currencies that are very good, but the blockchain 0:18:28.119 --> 0:18:31.720 can do a heck of a lot, particularly on international 0:18:31.800 --> 0:18:34.320 money movement, because we're looking at Swift, you know, which 0:18:34.359 --> 0:18:37.240 takes at least a day, sometimes multiple days to get 0:18:37.240 --> 0:18:39.960 significant money moved from America to Singapore. 0:18:40.320 --> 0:18:44.159 And with the right crypto networks, you can do it 0:18:44.200 --> 0:18:49.200 like that, that easy, sure, and that fast. 0:18:49.240 --> 0:18:52.359 So that sounds like Western Union gets disrupted in a 0:18:52.400 --> 0:18:54.239 situation like that. That's what it sounds like to me. 0:18:54.400 --> 0:18:58.119 Not quite, because Western Union. Western Union is all about 0:18:58.119 --> 0:19:00.760 the last mile, and Western Union is doing lots of 0:19:00.840 --> 0:19:04.040 little payments and for most in most of the world, 0:19:04.440 --> 0:19:07.800 it's actually agents, physical agents who are who are taking 0:19:07.840 --> 0:19:09.399 the money and giving out the money. 0:19:09.400 --> 0:19:10.440 So that's a very different thing. 0:19:10.680 --> 0:19:13.920 But if you're doing bank to bank payments or business 0:19:13.920 --> 0:19:14.840 to business plans. 0:19:14.760 --> 0:19:16.040 The big guys, the big guys. 0:19:16.160 --> 0:19:18.360 Yeah, So does it happen eventually? 0:19:18.640 --> 0:19:23.119 Oh yes, yeah, yeah. There is no reason whatsoever in 0:19:23.240 --> 0:19:26.000 this day and age it should take multiple days to 0:19:26.040 --> 0:19:27.200 get money from here to there. 0:19:27.359 --> 0:19:27.679 Amen. 0:19:27.960 --> 0:19:30.800 But and we were doing twenty five years ago. We 0:19:30.800 --> 0:19:34.720 were moving money instantly, skittering it around the world at PayPal. 0:19:35.320 --> 0:19:36.200 It's not that hard. 0:19:36.600 --> 0:19:38.080 So are there going to be big players in it? 0:19:38.800 --> 0:19:42.240 I don't know. I don't follow, I don't follow what's happening. 0:19:42.280 --> 0:19:45.119 You know, Ripple took a stab at it for a 0:19:45.119 --> 0:19:47.800 while but I haven't heard anything about that in a while, 0:19:47.840 --> 0:19:48.480 So I don't. 0:19:48.320 --> 0:19:51.920 Know what you know. Just got about thirty seconds here. 0:19:52.119 --> 0:19:55.120 I mean, AIS have obviously the trend that everybody talks 0:19:55.119 --> 0:19:57.040 about in terms of its impact. Is there anything else 0:19:57.080 --> 0:19:59.359 though outside of AI? Or is it really just about 0:19:59.440 --> 0:20:01.800 artificial and eence which is not a new thing, but 0:20:01.800 --> 0:20:03.040 it's certainly on a different level too. 0:20:03.080 --> 0:20:03.320 Yeah. 0:20:03.520 --> 0:20:06.480 So I'll just say quickly, in what I'm doing Evergreen Wealth, 0:20:06.560 --> 0:20:08.879 we're doing two things. First of all, we're using AI 0:20:09.080 --> 0:20:13.040 to revolutionize how financial advice can be delivered. But the 0:20:13.119 --> 0:20:17.200 other important thing we're doing is bringing tax considerations into 0:20:17.440 --> 0:20:19.320 investment management, because. 0:20:19.000 --> 0:20:22.199 It's not what you earn, it's what you keep that counts. 0:20:22.359 --> 0:20:25.240 That's former PayPal CEO Bill Harris speaking with us at 0:20:25.280 --> 0:20:29.200 Michael Loebe's annual Unsharted Summit. Another guest we heard from 0:20:29.320 --> 0:20:32.879 at the event Allie McCartney. She is Managing director of 0:20:32.920 --> 0:20:36.560 Private Wealth Management at UBS, and she started off by 0:20:36.600 --> 0:20:38.600 telling us why she comes to this event. 0:20:39.160 --> 0:20:44.639 So UBS and I traffic at the intersection in liquidity 0:20:44.680 --> 0:20:47.520 events and in individuals, and so what does that mean? 0:20:47.760 --> 0:20:51.240 That's entrepreneurship and so one of the beautiful things about 0:20:51.280 --> 0:20:53.440 this event and about our partnership with it is. Michael 0:20:53.480 --> 0:20:56.360 Lobe opened by saying, this is a celebration of entrepreneurs 0:20:56.359 --> 0:20:59.520 and entrepreneurialism. Right, and so if you go through all 0:20:59.520 --> 0:21:02.320 of the things things that are happening in our world today, 0:21:02.440 --> 0:21:06.480 all of the trends, deglobalization being a big one, right right. 0:21:06.840 --> 0:21:10.680 Where does wealth come from in this country? It's intellectual property. 0:21:11.080 --> 0:21:14.840 It is six million businesses founded last year. It is 0:21:15.400 --> 0:21:20.040 being at these events and having funders and founders meet, 0:21:20.440 --> 0:21:25.080 providing very valuable networking opportunities, and for us to be 0:21:25.160 --> 0:21:28.840 able to be supportive of that community full stop is 0:21:28.880 --> 0:21:30.920 really the bread and butter of what we do at ubs. 0:21:31.280 --> 0:21:34.800 Does it give you new opportunities to bring new money 0:21:34.800 --> 0:21:37.800 into your firm or is it more like, okay, when 0:21:37.840 --> 0:21:41.920 I'm allocating my client's assets. Yeah, I'm thinking about these 0:21:41.960 --> 0:21:46.040 alternatives because I talked about these types of businesses with 0:21:46.160 --> 0:21:47.240 people at this conference. 0:21:47.520 --> 0:21:49.040 So yes, and yes, I would say there are three 0:21:49.040 --> 0:21:51.840 things it does. It is certainly, you know, a prospecting, 0:21:52.080 --> 0:21:54.919 right rich environment in terms of there are people here 0:21:55.240 --> 0:21:58.240 who obviously we know the numbers of the success of 0:21:58.280 --> 0:22:01.320 startups and franchises of these people are going to be 0:22:01.359 --> 0:22:05.280 the next unicorns, right, So there's that. The second is 0:22:05.400 --> 0:22:09.719 it allows me to learn about AI or why the 0:22:09.720 --> 0:22:12.960 founder of Tesla, you know, founded Tesla and what he's 0:22:13.040 --> 0:22:16.840 thinking about now. And then the third thing is it 0:22:16.880 --> 0:22:20.760 allows me to find new opportunities for myself and my 0:22:20.880 --> 0:22:25.119 clients to be outside of this environment, both educated and 0:22:25.320 --> 0:22:29.399 proximant to the new trends that are driving sort of 0:22:29.400 --> 0:22:31.560 where the puck is and how we'll invest for sure. 0:22:31.880 --> 0:22:33.359 You know, it's funny you see the founder of Tesla, 0:22:33.400 --> 0:22:35.760 because Elon Musk was not actually the founder, was he? 0:22:35.760 --> 0:22:35.840 He? 0:22:36.040 --> 0:22:39.879 So it was very funny because the first panel was 0:22:39.880 --> 0:22:43.160 someone who's just been seven months in the White House. Yeah, 0:22:43.200 --> 0:22:45.800 and so Elon Musk was a topic of conversation there. 0:22:46.240 --> 0:22:49.520 And then the next man after was the founder of Tesla, 0:22:49.760 --> 0:22:54.919 who I thought, who very elegantly decided not to answer 0:22:54.920 --> 0:22:55.479 that question. 0:22:55.840 --> 0:22:57.760 You know what's funny too, is and I think about 0:22:58.600 --> 0:23:02.800 wealth management. You do have, I'm assuming as clients a 0:23:02.800 --> 0:23:05.240 lot of folks that are founders, and whether they're looking 0:23:05.280 --> 0:23:08.000 to sell their company and find a deal, or maybe 0:23:08.000 --> 0:23:10.720 you have other clients who have money they want to 0:23:10.760 --> 0:23:12.440 put to work. And they want to have a piece 0:23:12.480 --> 0:23:14.919 of a company. A lot of that is what goes on, right. 0:23:14.760 --> 0:23:16.040 Oh, a lot of that is what goes on. So 0:23:16.359 --> 0:23:18.720 I think like, if you think about the path of 0:23:18.760 --> 0:23:21.560 a founder of an entrepreneur, right, you have an idea, 0:23:21.640 --> 0:23:25.000 there's something disruptive, there's some challenge or problem you're trying 0:23:25.000 --> 0:23:27.719 to solve in the world. And you know, we were 0:23:27.800 --> 0:23:30.560 learning today that most people sell fund that by using 0:23:30.600 --> 0:23:33.880 credit cards, personal assets and their four to one K, right, 0:23:34.000 --> 0:23:36.359 they make less than one hundred thousand dollars for years 0:23:36.400 --> 0:23:39.719 and years and years, and they are just so embedded 0:23:39.960 --> 0:23:43.080 in their company and the mission and the branding that 0:23:43.119 --> 0:23:46.600 they're not thinking about the tax consequences, whether they can 0:23:46.680 --> 0:23:50.119 take advantage of qualified solled business stock. Could the business 0:23:50.240 --> 0:23:52.879 be stuck in a marriage in court and decided by 0:23:52.920 --> 0:23:55.240 the state of California or Florida if they don't have 0:23:55.280 --> 0:23:58.679 a pre nut so all of the So what we 0:23:58.840 --> 0:24:03.600 do is we say, look, if you are extremely successful, 0:24:05.640 --> 0:24:08.280 you're going to get to a liquidity point where some 0:24:08.400 --> 0:24:11.800 lawyer or some general counsel or Anderson Tax is going 0:24:11.880 --> 0:24:14.560 to say, have you talked about the planning and this? 0:24:15.080 --> 0:24:17.840 And at that point you can maybe add a couple 0:24:17.880 --> 0:24:20.840 percent of value. But if you can find these people 0:24:21.040 --> 0:24:23.119 as they are stuck in what I call the valley 0:24:23.160 --> 0:24:25.600 of death, sort of that middle part of building a business, 0:24:26.000 --> 0:24:28.800 and you can get an hour with them, just to say, 0:24:28.840 --> 0:24:31.239 there are a couple things we can do from an 0:24:31.240 --> 0:24:35.560 investment perspective, an entity perspective, and a tax perspective that 0:24:35.680 --> 0:24:37.880 if you are as successful as you think you are, 0:24:38.359 --> 0:24:41.640 you can protect yourself and investors and you can make 0:24:41.760 --> 0:24:44.800 your net much bigger than what it would be otherwise. 0:24:45.160 --> 0:24:47.000 As you know, entrepreneurs are not focused on this stuff. 0:24:47.040 --> 0:24:48.000 We now no, no, no. 0:24:48.160 --> 0:24:51.880 So if they haven't taken advantage of something like the QSBS, yeah, 0:24:52.080 --> 0:24:53.600 and if they didn't set up the business that way 0:24:53.640 --> 0:24:56.800 initially can get can they change it to actually get 0:24:56.800 --> 0:24:57.400 that benefit? 0:24:57.680 --> 0:25:00.879 It becomes increasingly difficult as you take and capital, you 0:25:00.960 --> 0:25:04.440 have more LPs, et cetera. But there are many many 0:25:04.480 --> 0:25:06.760 ways to do it. And I think most people know 0:25:06.840 --> 0:25:10.080 about that ten million dollar headline number. So I've seen 0:25:10.680 --> 0:25:14.720 many many times that protected Our goal is to try 0:25:14.720 --> 0:25:17.760 to be in front of entrepreneurs and support them, but 0:25:17.840 --> 0:25:20.080 to try to get them either to think about which 0:25:20.119 --> 0:25:23.720 is really challenging or get them to sort of open 0:25:23.800 --> 0:25:27.080 up themselves to allowing someone to act on their behalf 0:25:27.800 --> 0:25:30.120 even when they're not there yet. 0:25:31.160 --> 0:25:35.040 That's Ali McCartney, Managing Director, Private Wealth Management at EBS. 0:25:35.320 --> 0:25:35.920 Still ahead on. 0:25:35.840 --> 0:25:38.399 Bloomberg Business Week. More from our visit to Michael Lobe's 0:25:38.440 --> 0:25:41.679 Unsharted conference in the Hamptons. Up next to check on 0:25:41.720 --> 0:25:43.919 the health and activity of capital markets with someone who 0:25:43.960 --> 0:25:45.840 knows a lot about it has a front row seat. 0:25:46.080 --> 0:25:48.280 He has the vice chair of the New York Stock Exchange. 0:25:48.440 --> 0:25:50.080 That's next. This is Bloomberg. 0:25:53.040 --> 0:25:56.880 This is the Bloomberg Business Week Daily Podcast. Listen live 0:25:56.960 --> 0:26:00.560 each weekday starting at two pm Eastern on Applecar and 0:26:00.560 --> 0:26:03.440 Android Auto with the Bloomberg Business App. You can also 0:26:03.560 --> 0:26:06.880 listen live on Amazon Alexa from our flagship New York station, 0:26:07.240 --> 0:26:09.800 Just Say Alexa played Bloomberg eleven thirty. 0:26:10.359 --> 0:26:13.120 This is a special holiday edition of Bloomberg Business Week, 0:26:13.320 --> 0:26:16.919 featuring some of our favorite conversations from the Uncharted Community Summit. 0:26:17.200 --> 0:26:20.359 It was held recently in Michael Lobe's backyard in the Hamptons. 0:26:20.720 --> 0:26:23.520 At the summit was Michael Harris. He has his finger 0:26:23.560 --> 0:26:25.119 on the pulse of what is going on when it 0:26:25.119 --> 0:26:28.920 comes to publicly held companies, old issues and new issues 0:26:29.119 --> 0:26:32.200 that have come to market, such as IPOs. He's vice 0:26:32.280 --> 0:26:34.200 chairman and global head of Markets at the New York 0:26:34.240 --> 0:26:35.119 Stock Exchange. 0:26:35.440 --> 0:26:38.240 Last time we spoke with you was at another event 0:26:38.560 --> 0:26:42.200 equally beautiful, by the way, equally beautiful downtime exactly. 0:26:42.760 --> 0:26:42.960 That was. 0:26:43.160 --> 0:26:46.720 That was back in early March. A lot has happened. Yeah, 0:26:46.760 --> 0:26:48.680 since then, we've kind of had a round trip when 0:26:48.680 --> 0:26:52.000 it comes to equity markets. There were some concerns a 0:26:52.000 --> 0:26:55.680 few weeks after we spoke about companies pulling their IPOs 0:26:55.800 --> 0:26:59.320 as a result of what was happening with trade. Those 0:26:59.359 --> 0:27:03.320 IPOs they ended up happening in May and June. How 0:27:03.320 --> 0:27:05.160 would you describe the environment right now? 0:27:05.320 --> 0:27:07.560 I mean, I think, you know, the round trip that 0:27:07.600 --> 0:27:10.119 you described is exactly the way to think about it. 0:27:10.160 --> 0:27:12.160 You know, we've seen a complete one hundred and eighty 0:27:12.160 --> 0:27:15.000 degree turn in terms of sentiment, in terms of where 0:27:15.000 --> 0:27:17.800 the market backdrop is, and it's playing out in the 0:27:17.840 --> 0:27:20.400 IPO market on a couple different factors. On one hand, 0:27:20.440 --> 0:27:23.159 we're seeing the subscription levels in terms of interest on 0:27:23.200 --> 0:27:26.439 IPOs are through the roof. So these deals that are 0:27:26.440 --> 0:27:29.639 coming to the marketplace are multiple times over subscribed interest 0:27:29.720 --> 0:27:32.639 from a wide range of investors. The second part of 0:27:32.680 --> 0:27:34.960 it is when they do come to the market, the 0:27:35.000 --> 0:27:38.760 actual pricing outcomes are oftentimes very much in the favor 0:27:38.920 --> 0:27:41.399 of the issuers. And then the third part of it 0:27:41.440 --> 0:27:44.400 is the performance, which you mentioned just now, the performance 0:27:44.560 --> 0:27:47.960 on day one, the follow through in the aftermarket, all 0:27:48.000 --> 0:27:50.920 the way through the offer to today's performance has been 0:27:50.960 --> 0:27:54.560 absolutely phenomenal. So that really keeps the cycle in terms 0:27:54.600 --> 0:27:57.640 of investor interest continuing to go. And so what we're 0:27:57.680 --> 0:28:00.280 seeing that play out is really in our backlock. So 0:28:00.320 --> 0:28:03.280 we see a very active summer, we see an active September, 0:28:03.400 --> 0:28:04.919 and we think it's going to be a very active 0:28:05.000 --> 0:28:06.399 twenty twenty five right forward. 0:28:06.640 --> 0:28:08.800 What does that backlog look like? You say active, I 0:28:08.840 --> 0:28:11.440 mean how backed up is it and how eager are 0:28:11.480 --> 0:28:13.000 these that are back ready to go? 0:28:13.280 --> 0:28:15.280 Yeah, Well, you know, for the first part, you're seeing, 0:28:15.400 --> 0:28:17.320 on one hand, a lot of companies that were delaying 0:28:17.400 --> 0:28:19.960 their IPOs because of some of the tensions that happened 0:28:20.000 --> 0:28:22.040 in the beginning part of the year. So some of 0:28:22.080 --> 0:28:23.720 them have taken a step back and they were kind 0:28:23.720 --> 0:28:26.600 of waiting to see. On one hand, just what happened 0:28:26.640 --> 0:28:29.320 from a geopolitical standpoint, how things are playing out in 0:28:29.440 --> 0:28:31.680 terms of just the tensions that we're in the air. 0:28:32.000 --> 0:28:34.440 And also they're waiting to see from the investor community 0:28:34.480 --> 0:28:36.000 what the reception was going to be for some of 0:28:36.000 --> 0:28:39.320 the more recent crop of IPOs. So we've gotten those results. 0:28:39.440 --> 0:28:42.560 Those results have been in many cases much better than 0:28:42.560 --> 0:28:44.720 they thought they would be, and so they're now ready 0:28:44.720 --> 0:28:47.160 to push forward. The other part of it is what 0:28:47.160 --> 0:28:49.200 we're seeing now is a much more diverse array of 0:28:49.200 --> 0:28:50.880 companies that are going public. You know, when you and 0:28:50.960 --> 0:28:53.000 I talked, we were talking about who would be the 0:28:53.040 --> 0:28:55.360 most likely companies to go public, and they would be 0:28:55.560 --> 0:28:58.400 likely the more defensive names. Now we're seeing that start 0:28:58.440 --> 0:29:00.880 to broaden out, so or our pipeline and looks more 0:29:00.920 --> 0:29:03.880 diverse than it was back in March. It looks awester 0:29:04.040 --> 0:29:06.320 for larger companies that are also going to be coming 0:29:06.400 --> 0:29:09.040 So really, in all respects, it tends to be a 0:29:09.120 --> 0:29:10.000 very healthy outcome. 0:29:10.080 --> 0:29:13.160 How has that pipeline diversity shifted in recent years? I 0:29:13.200 --> 0:29:15.960 remember when I spent three four years working from the 0:29:15.960 --> 0:29:18.720 floor of the New York Stock Exchange as a reporter, 0:29:19.000 --> 0:29:22.480 and there was a period in twenty seventeen twenty eighteen, 0:29:23.960 --> 0:29:27.520 no joke, no exaggeration. Almost every other day there was 0:29:27.560 --> 0:29:30.960 a Chinese company going public in the United States. These 0:29:30.960 --> 0:29:34.680 were companies we had never heard of. There were companies 0:29:34.720 --> 0:29:37.680 that we haven't heard from since. I mean, it was 0:29:37.920 --> 0:29:41.760 really really wild times. Then there was this crackdown on 0:29:41.880 --> 0:29:44.680 a lot of these companies that were listed from China 0:29:44.840 --> 0:29:48.280 in the US. Yeah, has that business completely dried up 0:29:48.320 --> 0:29:51.000 for you? I mean she and has filed confidentially to 0:29:51.520 --> 0:29:51.840 listen to. 0:29:51.840 --> 0:29:54.680 IDEO in k We saw that today, Yeah, yeah, yeah, 0:29:54.720 --> 0:29:57.719 you know, it's interesting. There's still a class of companies 0:29:57.800 --> 0:30:01.680 that are for the most part microcap in nature, a 0:30:01.680 --> 0:30:05.040 lot of them domiciled in China that are still coming public. 0:30:05.360 --> 0:30:07.360 That's a class of companies that quite frankly, we have 0:30:07.400 --> 0:30:10.680 the New York Stock Exchange really don't really look to 0:30:11.560 --> 0:30:13.920 Some of our competitors tend to focus on that market. 0:30:14.160 --> 0:30:16.239 And we've seen a number of articles, whether it's from 0:30:16.240 --> 0:30:18.360 the Wall Street Journal, Financial Times or others, that have 0:30:18.400 --> 0:30:20.560 really pointed to some of the problems that have become 0:30:20.640 --> 0:30:22.640 as a result of that. So that's not something really 0:30:22.680 --> 0:30:25.520 focus on. But we are still seeing some of those 0:30:25.560 --> 0:30:28.360 companies come to the public markets. But I think there's 0:30:28.360 --> 0:30:30.479 some challenges with that, and there's going to probably continue 0:30:30.480 --> 0:30:31.800 to be challenges with that going forward. 0:30:31.880 --> 0:30:35.280 Still out of China, some are they choosing to list 0:30:35.280 --> 0:30:36.400 in other areas of the world. 0:30:36.760 --> 0:30:39.320 Yeah, you know, it depends a little bit on market cap, 0:30:39.400 --> 0:30:41.800 it depends on the sector. I think what you are 0:30:41.840 --> 0:30:45.400 seeing is a bit of a preference for many companies 0:30:45.440 --> 0:30:47.880 just for liquidity. So the US market still continues to 0:30:47.920 --> 0:30:50.360 be a place where they would like to list, but 0:30:51.000 --> 0:30:54.840 for larger names, the home markets continue to be also 0:30:55.240 --> 0:30:57.840 very attractive, you know, Cattle being a great example of that. 0:30:57.920 --> 0:31:00.720 Early in the year, shean looking to the Hongkong relative 0:31:00.760 --> 0:31:04.040 to London. So, depending on the name, depending on the sector, 0:31:04.040 --> 0:31:06.680 depending on the specifics of those companies, home markets can 0:31:06.760 --> 0:31:08.240 also be a very viable alternative. 0:31:08.280 --> 0:31:08.960 To Michael. 0:31:09.000 --> 0:31:10.959 In some of the cases with the IPOs, we've really 0:31:11.000 --> 0:31:13.000 seen quite a pop on that first day of trading, right. 0:31:13.040 --> 0:31:13.680 That's a good sign. 0:31:13.920 --> 0:31:16.440 You know, we want to see that as certainly a 0:31:16.440 --> 0:31:18.080 company that's going public wants to see that. But it 0:31:18.080 --> 0:31:21.200 always begs the question, were they too conservative in you know, 0:31:21.240 --> 0:31:23.680 the numbers that they put out there. I am curious, 0:31:23.680 --> 0:31:26.240 what are the conversations that you're hearing from those folks, 0:31:26.400 --> 0:31:28.040 and those companies that are looking to go public, are 0:31:28.040 --> 0:31:30.760 they would they rather be a little conservative going in 0:31:30.800 --> 0:31:33.280 and making sure that that's a good first day of trading. 0:31:33.480 --> 0:31:33.920 Yeah. 0:31:34.000 --> 0:31:36.560 You know, I think when you talk to people in 0:31:36.720 --> 0:31:39.920 the world of IPOs, whether they're bankers or lawyers, you know, 0:31:39.960 --> 0:31:42.239 it's often talked about being more of an art than 0:31:42.240 --> 0:31:43.880 a science, and I think there is a little bit 0:31:43.920 --> 0:31:46.400 of truth to that. Yeah, there's a balancing act that 0:31:46.400 --> 0:31:49.480 always has to happen, and also companies that are investors 0:31:49.560 --> 0:31:52.160 rather they're going to be supporting the company from a 0:31:52.160 --> 0:31:54.560 liquidity perspective, and there's a balance of the two in 0:31:54.600 --> 0:31:58.080 the aftermarket. And the reality is, until you actually get 0:31:58.120 --> 0:32:00.240 to that stage where you're in the pricing room and 0:32:00.280 --> 0:32:03.320 you're actually confronting with management in terms of what the 0:32:03.400 --> 0:32:06.480 dynamics look like, it's sometimes tough to tell. And so 0:32:06.560 --> 0:32:08.840 I think the underwriters do a great job of being 0:32:08.840 --> 0:32:11.160 able to offer what those trade offs are going to 0:32:11.160 --> 0:32:13.640 be to management teams. Ultimately, the management teams are the 0:32:13.680 --> 0:32:16.480 ones that have to make those really tough decisions. But 0:32:16.720 --> 0:32:18.840 I always think about it in terms of the IPO 0:32:18.920 --> 0:32:22.960 process Ultimately it's a day one event, and really what 0:32:23.120 --> 0:32:26.000 management teams, what their stakeholders need to focus on is 0:32:26.000 --> 0:32:27.960 really trying to set up a company for success over 0:32:28.000 --> 0:32:30.600 the long term and not focus on necessarily the day 0:32:30.640 --> 0:32:33.320 one performance. Obviously you want a great pricing outcome, but 0:32:33.440 --> 0:32:36.040 really you're managing this company for the long haul. It's 0:32:36.080 --> 0:32:37.720 not really just for the day one IPO event. 0:32:38.040 --> 0:32:39.760 Can you give us an update on the New York 0:32:39.800 --> 0:32:42.920 Stock Exchange Texas launch this year? We talked about it 0:32:42.960 --> 0:32:43.600 back in March. 0:32:43.880 --> 0:32:46.040 Yeah, yeah, we have, you know, multiple companies that are 0:32:46.080 --> 0:32:49.240 now listed there. We have a pretty fairly healthy pipeline 0:32:49.240 --> 0:32:51.520 of companies that are going to be going listing on 0:32:51.560 --> 0:32:55.200 the exchange over the next several months. We are very 0:32:55.200 --> 0:32:58.760 close to signing a lease in Dallas. It's really continuing 0:32:58.800 --> 0:33:01.440 to take on momentum, and so we really are excited 0:33:01.440 --> 0:33:01.800 about it. 0:33:01.840 --> 0:33:06.400 Do you think it's perhaps a hedge in New York 0:33:06.400 --> 0:33:09.960 City losing its place when it comes to capital markets? 0:33:09.960 --> 0:33:12.480 And I ask this kind of came into sharp relief 0:33:12.560 --> 0:33:14.360 this week with I think a lot of people would 0:33:14.400 --> 0:33:18.080 argue with what happened in the Democratic primary for the 0:33:18.120 --> 0:33:22.640 mayoral election. We certainly have a lot of outspoken billionaires 0:33:23.080 --> 0:33:27.400 who've talked about concerns when it comes to capital markets 0:33:27.440 --> 0:33:29.280 here in New York in the position of New York 0:33:29.280 --> 0:33:31.560 City as being the epicenter of Wall Street. 0:33:32.240 --> 0:33:34.360 Yeah, I mean for Texas, the way that we've thought 0:33:34.360 --> 0:33:36.360 about it is when we look at our own listed 0:33:36.400 --> 0:33:39.280 community and we look at the number of companies in 0:33:39.400 --> 0:33:42.760 terms of where they're domiciled, Texas really stands out tends 0:33:42.800 --> 0:33:44.960 to be the area where we have the most number 0:33:45.000 --> 0:33:47.640 of companies from a really diverse range. 0:33:47.520 --> 0:33:49.360 Of sectors that are represented. 0:33:49.680 --> 0:33:51.400 And so when we kind of really thought about it 0:33:51.440 --> 0:33:55.040 from the perspective of what Governor Abbott's doing to try 0:33:55.080 --> 0:33:59.200 to make sure that the ecosystem of companies within Texas 0:33:59.240 --> 0:34:02.800 is vibrant, and you know, it intersects with a lot 0:34:02.840 --> 0:34:04.920 of what we're trying to do in terms of getting 0:34:04.920 --> 0:34:07.600 a great environment for our own listed community, it really 0:34:07.600 --> 0:34:09.480 made sense. So we think about this more from the 0:34:09.520 --> 0:34:12.040 long term perspective of offering the best environment for our 0:34:12.080 --> 0:34:14.640 listed community, less in terms of like a short term 0:34:14.680 --> 0:34:16.840 strategy in terms of what might be happening in the 0:34:16.880 --> 0:34:19.799 New York ecosystem. We still are big believers that New 0:34:19.880 --> 0:34:22.680 York continues to be a great place for capital raising 0:34:22.719 --> 0:34:24.320 and also for companies to be domiciled. 0:34:24.400 --> 0:34:26.840 But longer term than does that mean, does it expand 0:34:26.840 --> 0:34:27.240 the model? 0:34:27.560 --> 0:34:29.560 It's hard to know, you know, really just focused on 0:34:29.640 --> 0:34:31.719 kind of where we see the greatest opportunity for our 0:34:31.760 --> 0:34:35.359 community right now. But we're always forward thinking in terms 0:34:35.440 --> 0:34:38.640 of really trying to see where the greatest opportunity results 0:34:38.680 --> 0:34:39.480 for our community. 0:34:39.600 --> 0:34:42.200 That's Michael Harris, Vice Chairman and Global head of Markets 0:34:42.239 --> 0:34:44.839 at the New York Stock Exchange. We also caught up 0:34:44.840 --> 0:34:48.160 with a shark at the Uncharted Community Summit on Long Island. 0:34:48.640 --> 0:34:51.520 Damon John is the founder and CEO of Fubu, and 0:34:51.560 --> 0:34:54.719 of course he's also a shark on ABC's reality show 0:34:54.880 --> 0:34:57.200 Shark Tank. We spoke about how hard it is to 0:34:57.280 --> 0:34:58.000 start a brand. 0:34:58.760 --> 0:34:59.600 It is not easy. 0:35:00.160 --> 0:35:02.239 Is it getting any easier or is it harder? And 0:35:02.800 --> 0:35:05.480 I feel like it's an environment where anybody can almost 0:35:05.520 --> 0:35:06.000 have a brand. 0:35:06.000 --> 0:35:07.840 I do think it's getting harder. I think because you 0:35:07.880 --> 0:35:10.200 have to find this niche audience. But not only do 0:35:10.239 --> 0:35:12.920 you have to create the brand itself for your product 0:35:13.040 --> 0:35:16.800 or services, but you as a CEO and a founder have. 0:35:16.719 --> 0:35:17.759 To be a brand as well. 0:35:18.160 --> 0:35:18.839 What does that mean? 0:35:19.320 --> 0:35:21.000 Well, that means that people would not only want to 0:35:21.000 --> 0:35:23.080 know why they're investing in the brand or the product 0:35:23.160 --> 0:35:26.120 or buying it. What story does that brand or product 0:35:26.600 --> 0:35:28.520 have as well as founders? 0:35:28.880 --> 0:35:29.840 Who are you? 0:35:29.840 --> 0:35:30.040 You know? 0:35:30.080 --> 0:35:32.960 I always say on Shark Tank that you know, none 0:35:33.000 --> 0:35:36.600 of us are original. I mean, there's a million real 0:35:36.680 --> 0:35:38.960 estate agents, there's only one Barbara Corkan. A lot of 0:35:39.000 --> 0:35:43.160 people own sports teams, Mark Cuban clothing line, you. 0:35:43.080 --> 0:35:43.440 Know what I mean? 0:35:43.440 --> 0:35:47.600 People we had created personal brands, and then our brands 0:35:47.640 --> 0:35:49.759 now walk into the room before we do when we 0:35:49.800 --> 0:35:52.280 want to raise capital, when we want to make decisions, 0:35:52.320 --> 0:35:55.040 when we want to defend the fact that somebody is 0:35:55.040 --> 0:35:58.279 saying negative about our brand and our company and affecting 0:35:58.400 --> 0:36:01.359 our payroll and our amazing staff that works for us. 0:36:01.480 --> 0:36:03.000 Do you think you could create Fubu today? 0:36:03.520 --> 0:36:05.200 Absolutely, one hundred percent. 0:36:05.239 --> 0:36:07.400 But today's it's a completely different environment. 0:36:07.440 --> 0:36:10.319 Today's Fubu would be a different right, There's no there's 0:36:10.360 --> 0:36:13.120 not new to have four young African American men designing 0:36:13.160 --> 0:36:14.080 for their own markets. 0:36:14.120 --> 0:36:15.280 So what would food will be today? 0:36:15.280 --> 0:36:17.400 I would probably do more of the avon uh you 0:36:17.440 --> 0:36:19.799 know type of thing where I would have one male, 0:36:19.920 --> 0:36:22.880 one female in a college and a high school. They 0:36:22.880 --> 0:36:24.880 would get probably about a one thousand dollars worth of 0:36:24.880 --> 0:36:28.640 fooble on credit for about three hundred dollars, probably underwritten 0:36:28.640 --> 0:36:32.160 by hopefully somebody great. And the more they sell, they 0:36:32.200 --> 0:36:35.640 would get more digital curriculums and various other things and 0:36:35.800 --> 0:36:37.759 very much of an Avon model. So I would have 0:36:37.920 --> 0:36:41.720 hopefully two million sales reps around the world. 0:36:41.800 --> 0:36:43.560 It's so interesting that you say that, because the retail 0:36:43.680 --> 0:36:48.439 environment has completely changed. It's done. It's done, Yeah, completely done. 0:36:48.480 --> 0:36:50.960 You know, I've been to fifty six trade shows this year. 0:36:51.000 --> 0:36:53.040 You know, I speak at a lot of shows, and 0:36:53.640 --> 0:36:57.160 the traffic besides the franchise show and maybe the medical 0:36:57.239 --> 0:37:00.160 tech show, it is one third of the traffic at 0:37:00.200 --> 0:37:03.160 these shows. Because these retailers are now dying. They're not 0:37:03.239 --> 0:37:05.239 walking the door. You know, who's walking in. It's a 0:37:05.239 --> 0:37:08.920 bunch of kids or people. Influencers, could be grand influencers 0:37:09.000 --> 0:37:12.719 who are now doing live selling, whether on Amazon or 0:37:12.760 --> 0:37:14.360 TikTok or whatnot. 0:37:14.800 --> 0:37:17.239 And that's what's happening live selling. That's something that I 0:37:17.280 --> 0:37:19.359 think is very familiar to people in China, but not 0:37:19.440 --> 0:37:22.000 necessarily familiar to many people in the US at least 0:37:22.080 --> 0:37:24.000 yet explain exactly what that is. 0:37:24.040 --> 0:37:25.560 Well, I'm selling as you go, and I'll give you example. 0:37:25.560 --> 0:37:28.280 There's an app call Whatnot, right, and people have twenty 0:37:28.360 --> 0:37:32.200 second auctions for one little device or let's say a 0:37:32.280 --> 0:37:37.680 piece of makeup, right, sell for about twelve dollars right now. 0:37:37.760 --> 0:37:41.120 They can do this three separate times in one minute, right, 0:37:41.160 --> 0:37:44.399 so they make a profit about four dollars every time 0:37:44.440 --> 0:37:46.800 they sell it. So now all of a sudden, twelve 0:37:46.960 --> 0:37:49.520 dollars a minute. You times app and now they have 0:37:49.560 --> 0:37:52.520 friends coming on everything. You times app by sixteen hours 0:37:52.560 --> 0:37:55.319 a day. And that's what's happening because then when people 0:37:55.360 --> 0:37:57.600 buy it, now you know who the client is and 0:37:57.680 --> 0:37:59.960 the customer you can sell it to them again. Remember 0:38:00.000 --> 0:38:01.880 but there's only three ways to ever deal with the customer. 0:38:01.880 --> 0:38:04.279 Acquire a new one, upsell a current one, or make 0:38:04.280 --> 0:38:06.640 one buy more frequently. That's why you want to supicize 0:38:06.640 --> 0:38:08.839 everybody's fries, and now you know who they are, they 0:38:08.840 --> 0:38:10.640 can upsell them or buy more frequently. 0:38:10.719 --> 0:38:13.520 That's Damon John, founder and CEO of fu Bou and 0:38:13.600 --> 0:38:16.480 of course one of the sharks on ABC's Shark Tank. 0:38:16.920 --> 0:38:19.160 And that wraps up our first hour of this special 0:38:19.160 --> 0:38:22.279 holiday edition of Bloomberg Business Week from Bloomberg Radio. Coming 0:38:22.320 --> 0:38:24.439 up in the next sixty minutes. More from our visit 0:38:24.880 --> 0:38:29.359 to the Uncharted Community Summit held recently in Southampton. We'll 0:38:29.360 --> 0:38:32.240 talk about investing in women's health issues with Jessica Kamada, 0:38:32.320 --> 0:38:35.799 She's founder and managing partner at Swizzle Ventures. Plus more 0:38:35.840 --> 0:38:38.440 from our hosts Michael Loeb and Noah Friedman, who come 0:38:38.480 --> 0:38:41.800 back to discuss investing principles in the VC world. This 0:38:41.960 --> 0:38:44.800 is Bloomberg BusinessWeek. I'm Carol Masser along with Tim Steneviec. 0:38:44.960 --> 0:38:45.560 Stay with us. 0:38:45.600 --> 0:38:48.520 Today's top stories and global business headlines are coming up 0:38:48.760 --> 0:38:49.120 right now. 0:38:51.719 --> 0:38:55.200 If you are listening to the Bloomberg Business Weekdaily podcast, 0:38:55.400 --> 0:38:58.960 catch us live weekday afternoons from two to five pm Eastern. 0:38:59.120 --> 0:39:01.600 Listen on Apple, Our Play and Android Auto with the 0:39:01.640 --> 0:39:04.920 Bloomberg Business Act, or watch us live on YouTube. 0:39:06.960 --> 0:39:09.760 Welcome to a special holiday weekend edition of Bloomberg Business 0:39:09.800 --> 0:39:13.239 Week and happy fourth of July. We continue with our 0:39:13.360 --> 0:39:17.040 recent live broadcast from Southampton, Long Island. We were at 0:39:17.040 --> 0:39:20.960 the annual Uncharted Community Summit, an annual gathering of more 0:39:21.000 --> 0:39:24.440 than five hundred members of the startup community, and over 0:39:24.480 --> 0:39:26.560 the next sixty minutes, we continue to bring some of 0:39:26.560 --> 0:39:29.640 our favorite chats from the event. We'll hear from someone 0:39:29.719 --> 0:39:32.480 that runs an incubator for disruption in the tech sector 0:39:32.840 --> 0:39:37.080 and another investor targeting women's health specifically. First of this hour, though, 0:39:37.120 --> 0:39:39.200 I was joined by Bloomberg' Paul Sweeney to get some 0:39:39.280 --> 0:39:41.760 background on the event that you've been hearing about and 0:39:41.840 --> 0:39:45.680 hearing conversations from in the last hour. Event hosts Michael Loebe, 0:39:45.719 --> 0:39:48.319 founder and CEO of Lobe dot NYC. You heard about 0:39:48.400 --> 0:39:51.520 him in the last hour, and also Noah Friedman, CEO 0:39:51.520 --> 0:39:53.680 of Uncharted. They both joined us for a bit of 0:39:53.680 --> 0:39:56.960 a roundtable on the initial idea behind Uncharted. 0:39:57.320 --> 0:40:01.440 So what the intention is is that Noah and I 0:40:01.480 --> 0:40:04.520 started building Uncharted about four years ago, was in the 0:40:04.600 --> 0:40:08.600 teeth of COVID when nobody was getting together with anybody else, 0:40:08.680 --> 0:40:12.239 and we started having dinners at my house in the 0:40:12.280 --> 0:40:17.279 city and was very popular. And what the thesis is 0:40:17.280 --> 0:40:22.200 is that entrepreneurs need as much support as they can get, 0:40:22.320 --> 0:40:26.279 including emotional support, and the best way to do that 0:40:26.480 --> 0:40:29.960 is put entrepreneurs in a room with other entrepreneurs and 0:40:30.520 --> 0:40:34.320 they are as a class. They drive the economy, drive jobs, 0:40:34.400 --> 0:40:40.239 drive wealth, and yet there I think underappreciated, and as 0:40:40.239 --> 0:40:43.520 a serial entrepreneur myself, and actually one or two things worked, 0:40:45.600 --> 0:40:49.560 I'm you know, very empathetic and just with all the 0:40:49.600 --> 0:40:52.000 miles on the tires, I am kind of a senior 0:40:52.040 --> 0:40:54.560 statesman by definition. Right, this is a young guy's game. 0:40:55.320 --> 0:40:58.480 I say that I have the privilege of working with 0:40:58.600 --> 0:41:01.680 people half my agent, twice as smart. I used to 0:41:01.680 --> 0:41:04.920 say that. Now it's three times as smart and one 0:41:04.960 --> 0:41:07.600 third of my age. But that was the intention. And 0:41:07.680 --> 0:41:12.000 it's grown to a tribe of maybe twenty five hundred entrepreneurs, 0:41:12.080 --> 0:41:15.439 of which about a third of them show up to this, 0:41:15.520 --> 0:41:17.040 So we will have about eight hundred today. 0:41:17.200 --> 0:41:18.800 No, come on in on this. You're the CEO of 0:41:18.880 --> 0:41:22.080 Uncharted too, right, and so we're seeing things being set up. 0:41:22.080 --> 0:41:23.799 There's going to be a lot of great conversations and 0:41:23.800 --> 0:41:26.280 speakers going on. Tell us what it's been grown into 0:41:26.520 --> 0:41:28.840 and what kind of conversations are going to be happening 0:41:28.920 --> 0:41:29.399 later on. 0:41:29.680 --> 0:41:32.680 The common thread of everything that we've done it Uncharted 0:41:32.680 --> 0:41:35.200 since the first dinner on May twenty, twenty twenty one, 0:41:35.239 --> 0:41:36.279 and I'll never forget. 0:41:35.960 --> 0:41:38.640 It was it just you two by the way us. 0:41:38.520 --> 0:41:39.719 To at dinner. Yeah, it was just us too. 0:41:39.800 --> 0:41:41.160 We just sat and talked for four hours and here 0:41:41.160 --> 0:41:41.480 you were going. 0:41:41.480 --> 0:41:43.080 No, not about it. We also held ounce. 0:41:43.120 --> 0:41:44.279 We did all dance the whole time. 0:41:44.320 --> 0:41:45.320 Yeah, it's very romantic. 0:41:45.360 --> 0:41:45.440 Now. 0:41:45.440 --> 0:41:47.880 We had about twenty entrepreneurs around the table, kind of 0:41:48.160 --> 0:41:49.959 eight of each of our friends and then a couple others. 0:41:49.960 --> 0:41:52.440 If you will look, the common thread of every single 0:41:52.480 --> 0:41:55.240 event we've done, whether it's our dinners or the past 0:41:55.239 --> 0:41:57.799 three summits or the breakfast we've done, has always been 0:41:57.800 --> 0:42:02.680 trying to create safe spaces for real entrepreneurs, founders, exceptional 0:42:02.719 --> 0:42:05.920 participants in the entrepreneuri community, as we say, to truly 0:42:06.000 --> 0:42:08.640 drop their guard, drop their hair, and trust that they're 0:42:08.680 --> 0:42:10.920 in an environment where they can speak openly and honestly. 0:42:11.760 --> 0:42:14.239 Any entrepreneur or anyone who's building and really doing it, 0:42:14.280 --> 0:42:16.600 the real ones. Hopefully this will resonate when they hear 0:42:16.640 --> 0:42:19.880 it. It is really hard. It's very hard to build businesses. 0:42:19.880 --> 0:42:21.640 It's really hard to play this game at the high level. 0:42:21.680 --> 0:42:24.040 And I think if we can offer a rare environment 0:42:24.400 --> 0:42:26.600 where people can feel like they are amongst their true peers, 0:42:26.680 --> 0:42:28.360 or they can really drop their guard and connect with 0:42:28.400 --> 0:42:29.880 people in a place where no matter who you go 0:42:29.920 --> 0:42:32.400 talk to, they're all going to be exceptional. It's special. 0:42:32.480 --> 0:42:34.440 And so we've really tried to guard the energy. We've 0:42:34.440 --> 0:42:36.640 really tried to keep the sanctity of the fact that 0:42:36.640 --> 0:42:38.360 if you come to an uncharted event, you're going to 0:42:38.360 --> 0:42:41.239 meet someone amazing. And that's really been the common thread. 0:42:41.320 --> 0:42:43.120 I just want to say, it's a reminder of that, 0:42:43.239 --> 0:42:46.280 like Google, Apple, all of these companies that are now 0:42:46.360 --> 0:42:48.080 you know, the biggest market caps that are out there 0:42:48.080 --> 0:42:50.040 and that we talk about and you know all the time. 0:42:50.160 --> 0:42:52.520 I mean, they all started as an idea an entrepreneur. 0:42:53.120 --> 0:42:54.200 And that's the point, yea. 0:42:55.080 --> 0:42:57.319 And if you look at kind of success rates and 0:42:57.360 --> 0:43:01.000 everything else, if you're an entrepreneur, if you really knew 0:43:01.040 --> 0:43:05.719 all that stuff, why would you do this? Because the 0:43:05.760 --> 0:43:08.799 failure rate is incredibly high, hours are incredibly long, the 0:43:08.840 --> 0:43:12.200 pay you know, is dreadful until it's not until you 0:43:12.200 --> 0:43:14.520 have a big score. But the number of big scores 0:43:14.600 --> 0:43:17.759 is very very small, and there's so many forces and 0:43:17.800 --> 0:43:21.480 so many you know, so many exogenous things that are 0:43:22.400 --> 0:43:25.000 you know, anti entrepreneur that we wanted to have a 0:43:25.080 --> 0:43:29.960 sanctuary here that other entrepreneurs can meet other entrepreneurs, and Noah, 0:43:30.000 --> 0:43:31.880 you're fond of saying that. Not a week or two 0:43:31.960 --> 0:43:34.240 goes by where we don't get a phone call saying 0:43:34.760 --> 0:43:38.239 I met my co founder here two years ago. 0:43:39.920 --> 0:43:43.080 No Who's What are the areas that are most interested 0:43:43.160 --> 0:43:46.280 entrepreneurs today? Is it technology? Is healthcare? Are there certain 0:43:46.280 --> 0:43:48.080 industries that are getting most of the attention. 0:43:48.440 --> 0:43:51.000 Look, I think the obvious buzzword that you can't go 0:43:51.120 --> 0:43:52.560 too far in any of the new cycles to that 0:43:52.640 --> 0:43:55.440 hearing is AI. And I think that unlike other cycles 0:43:55.440 --> 0:43:58.080 that have come and went and entered the zeitgeist and left, 0:43:58.080 --> 0:44:00.520 this one feels very real. I can tell you that 0:44:00.560 --> 0:44:03.160 amongst all my friends, whether they're in CpG, health tech, 0:44:03.360 --> 0:44:06.040 pure AI, deep tech, what have you tech, and all 0:44:06.080 --> 0:44:09.120 of them are thinking explicitly about how AI is going 0:44:09.160 --> 0:44:10.840 to impact their business if they're not already, and how 0:44:10.880 --> 0:44:12.839 they're going to get into it. So I think we're 0:44:12.840 --> 0:44:14.120 certainly going to talk about that a lot. I think 0:44:14.120 --> 0:44:15.480 it's top of mind for a lot of people. The 0:44:15.520 --> 0:44:18.680 movement is real. I think that the implications and repercussions 0:44:18.719 --> 0:44:21.279 are unclear how it's going to land right now, but 0:44:21.800 --> 0:44:23.879 everybody's thinking about it, and they should be when. 0:44:23.800 --> 0:44:26.000 I think it's unclear, but it's going to be brought, 0:44:26.040 --> 0:44:27.640 it's going to be broad, it's going to be brought. 0:44:27.719 --> 0:44:31.439 And you mentioned cycles. I've been around for a few. 0:44:32.480 --> 0:44:36.040 This reminds me of the late nineties where the Internet 0:44:36.200 --> 0:44:38.120 happened and we had a lot of full starts two 0:44:38.200 --> 0:44:41.359 three years ago. Everybody was talking about NFTs before that, 0:44:41.400 --> 0:44:44.960 blockchain before that, cannabis before that, you know, something else. 0:44:45.640 --> 0:44:49.800 But this feels like another eruption. This feels like another 0:44:49.920 --> 0:44:53.400 advent of the Internet, one that we haven't had absolu earlier. 0:44:53.680 --> 0:44:56.040 Yeah, on the same level, no doubt about or even. 0:44:55.800 --> 0:44:58.399 More I think on the same level. 0:44:58.480 --> 0:44:58.680 Yeah. 0:44:58.680 --> 0:45:01.080 I mean, you know, it's hard to project and predict, 0:45:01.160 --> 0:45:05.359 but I had breakfast with a heroic entrepreneur a couple 0:45:05.360 --> 0:45:08.399 of days ago. He has built a business now worth 0:45:08.440 --> 0:45:11.800 one point eight billion dollars, and over breakfast, he says, 0:45:12.000 --> 0:45:14.200 I have two hundred and seventy people by year end, 0:45:14.560 --> 0:45:17.399 it's gonna be one twenty. Yeah, okay, interesting. 0:45:17.480 --> 0:45:19.800 I would add to that if I'm may, sorry, I 0:45:19.880 --> 0:45:22.120 think that there's this interesting tension with AI right now 0:45:22.120 --> 0:45:24.080 where I think Michael's right and I would even argue 0:45:24.120 --> 0:45:25.880 that this might I didn't live through the late nineties 0:45:25.920 --> 0:45:27.120 period of seeing it at least. 0:45:28.520 --> 0:45:30.640 All right, thanks for having me, guys, If you don't. 0:45:31.040 --> 0:45:34.279 I think that letting your hair down seven thing. I mean, 0:45:36.600 --> 0:45:38.360 why do you work with having? It's crazy? 0:45:38.360 --> 0:45:40.280 Everyone asked me that. But I think there's an inherent 0:45:40.360 --> 0:45:42.280 tension where I actually think it could be more disruptive. 0:45:42.320 --> 0:45:44.560 And at the same time, I do think that there's 0:45:44.560 --> 0:45:46.239 a lot of people who are betting big dollars than 0:45:46.280 --> 0:45:47.759 AI that are going to get wiped out because I 0:45:47.760 --> 0:45:50.080 think there's gonna be an absolute power law dynamic here 0:45:50.120 --> 0:45:53.399 where small select group of companies at the top end 0:45:54.360 --> 0:45:56.399 aggregate a ton of power and resource. I also think 0:45:56.440 --> 0:45:58.160 it's going to be a Barbell warre on the bottom end. 0:45:58.200 --> 0:46:00.239 You know, I've invested personally in companies that have two 0:46:00.320 --> 0:46:02.720 or three people on the team and have rocketed millions 0:46:02.760 --> 0:46:05.960 in arr because they're able to get ten x productivity 0:46:05.960 --> 0:46:08.160 if it's a killer founder. So I think there's a 0:46:08.160 --> 0:46:10.359 Barbell thing happening right now where the killer founders who 0:46:10.360 --> 0:46:12.799 actually know how to leverage resources are going to crush it, 0:46:13.040 --> 0:46:14.000 as are the big businesses. 0:46:14.040 --> 0:46:14.160 Well. 0:46:14.200 --> 0:46:16.200 Because of that and what AI can do genera of 0:46:16.280 --> 0:46:19.520 AI and so on. I mean, does it give entrepreneurs 0:46:19.520 --> 0:46:21.560 even more opportunities to start up? We talked about that 0:46:21.560 --> 0:46:23.920 after the pandemic. Basically create a website and you can 0:46:23.960 --> 0:46:26.919 go and then maybe that's simplifying things, but does AI 0:46:27.160 --> 0:46:30.719 kind of have a multiplier effect to on entrepreneurial activities? 0:46:30.840 --> 0:46:33.080 Without a doubt, I think that's the opportunity. I think 0:46:33.080 --> 0:46:35.359 that's right. And if you just look at what has 0:46:35.440 --> 0:46:39.320 happened over the years, you know, it used to be 0:46:39.360 --> 0:46:42.359 that if you build a business, a brand new business 0:46:42.400 --> 0:46:45.399 in the Internet, you need it. You needed hundreds of people, right, 0:46:45.480 --> 0:46:48.560 and now that's really compressed to just a few. But 0:46:48.680 --> 0:46:51.600 to Noah's point, there's going to be winners and there's 0:46:51.600 --> 0:46:53.600 going to be a lot of losers, and that's very 0:46:53.600 --> 0:46:54.120 hard to predict. 0:46:54.239 --> 0:46:56.759 Michael, talk to us about monetization. I'm not seeing a 0:46:56.760 --> 0:46:58.960 lot of IPOs. I'm not seeing a lot of m 0:46:59.040 --> 0:47:04.240 and A. How great entrepreneurs monetize the value they've created. 0:47:05.160 --> 0:47:07.120 That's a that's a great question. I would I would 0:47:07.160 --> 0:47:10.600 say that everything you just mentioned is part of a cycle, 0:47:11.080 --> 0:47:13.360 and we're just in that type of cycle where everything 0:47:13.440 --> 0:47:16.520 is a little bit bollock. Stop uh and but you 0:47:16.560 --> 0:47:18.440 know it's it's we're going to be on the other 0:47:18.480 --> 0:47:20.160 side of that, and there's going to be some great 0:47:20.320 --> 0:47:23.880 companies built, and there's going to be some great flameouts, 0:47:23.880 --> 0:47:25.080 a lot of people are going to lose a lot 0:47:25.080 --> 0:47:26.680 of money, and then there's going to be a few 0:47:26.800 --> 0:47:30.640 that are going to be extraordinarily successful. But to your point, 0:47:30.840 --> 0:47:33.360 we can build it now with instead of three hundred people, 0:47:33.400 --> 0:47:36.840 three and there's been predictions that there's going to be 0:47:36.880 --> 0:47:40.680 a unicorn with all of three people. Serious, Yeah, I 0:47:40.760 --> 0:47:41.080 believe that. 0:47:41.760 --> 0:47:43.440 Okay, that kind of makes sense. And we've started to 0:47:43.440 --> 0:47:45.480 see IPOs actually in general come to market and it's 0:47:45.520 --> 0:47:48.719 a much more favorable market. I got to ask you, 0:47:48.840 --> 0:47:51.800 I think we'd be remiss of the macro that's going 0:47:51.840 --> 0:47:55.920 on and different policies in the world being upended in geopolitics. 0:47:56.160 --> 0:47:58.959 What does that do for the entrepreneur. Entrepreneur who's trying 0:47:59.000 --> 0:48:00.919 to you know, we know can be lean and mean 0:48:01.000 --> 0:48:03.040 in the beginning when it comes to a startup. What 0:48:03.120 --> 0:48:05.279 about some of these macro issues, What would be more 0:48:05.320 --> 0:48:06.080 helpful to them? 0:48:06.080 --> 0:48:11.720 What kind of environment, well, anything that helps with capital formation, 0:48:11.920 --> 0:48:16.200 anything that kind of reduces regulation. I was hopeful that 0:48:16.239 --> 0:48:19.600 this administration would attack some of that stuff and maybe 0:48:19.680 --> 0:48:23.080 not terrorists. But anyway, it's still early. It's still early. 0:48:23.160 --> 0:48:26.319 We're here now. They are very active and very proactive, 0:48:26.600 --> 0:48:28.759 and I'm just hopeful that what you really want to 0:48:28.760 --> 0:48:31.120 give is entrepreneurs just charter. I mean, let them do 0:48:31.160 --> 0:48:34.240 their thing as much as you can. And our hope 0:48:34.280 --> 0:48:36.759 is by the way that this environment, believe it or not, 0:48:36.920 --> 0:48:39.680 will put a dent in that world, right, that they 0:48:39.760 --> 0:48:43.399 will find support here in many different ways. 0:48:43.440 --> 0:48:45.200 Well, I always think it's kind of amazing how much 0:48:45.200 --> 0:48:47.319 time we spend and obviously this is our world, right, 0:48:47.360 --> 0:48:49.600 the publicly held markets, right, this is what we track, 0:48:49.719 --> 0:48:52.600 you know, all the movements. But we talk constantly about 0:48:52.600 --> 0:48:55.120 the importance of small business and startups in terms of 0:48:55.160 --> 0:48:57.680 the backbone, and I just think it kind of gets 0:48:57.719 --> 0:48:58.399 lost a little bit. 0:48:58.640 --> 0:49:01.480 Yeah. I do think though, that you're going to see 0:49:01.520 --> 0:49:04.759 AI up end just about every industry. And I think 0:49:04.800 --> 0:49:07.680 those big companies are going to find themselves woefully behind 0:49:07.719 --> 0:49:09.200 and they're going to have no choice but to make 0:49:09.239 --> 0:49:10.040 some acquisitions. 0:49:10.200 --> 0:49:13.319 Well said, no, what capital is it out there for 0:49:13.520 --> 0:49:14.320 entrepreneurs today? 0:49:14.600 --> 0:49:14.960 It is? 0:49:15.000 --> 0:49:16.920 But I think that you're seeing an interesting dynamic with 0:49:17.000 --> 0:49:19.319 the vcs in private equity that they're chasing a lot 0:49:19.320 --> 0:49:22.040 of trends almost blindly. You know the fact that right 0:49:22.080 --> 0:49:23.960 now there are really good businesses that don't have the 0:49:24.000 --> 0:49:26.319 word AI that are struggling to raise money, whereas there's 0:49:26.320 --> 0:49:28.440 other businesses that have a deck and pre seed and 0:49:28.440 --> 0:49:30.560 barely an idea and or raising money at fifty million 0:49:30.600 --> 0:49:32.919 dollar pre money valuations. I think is indicative of what's 0:49:32.920 --> 0:49:33.279 going on. 0:49:33.360 --> 0:49:35.719 Yeah, we saw venture raise. It's been really difficult. 0:49:35.760 --> 0:49:38.640 It's been very difficult unless you're a credentialed AI founder 0:49:38.680 --> 0:49:40.200 have a good idea in the AI space, because there's 0:49:40.200 --> 0:49:42.759 a lot of VC funds chasing chasing ideas, and I 0:49:42.800 --> 0:49:44.840 think some of them will work, but the unfortunate realities, 0:49:44.840 --> 0:49:45.799 I think a lot of them are going to get 0:49:45.800 --> 0:49:47.920 absolutely smoked because they can't all work, especially not at 0:49:47.960 --> 0:49:51.280 fifty million dollar pre So to answer your question directly, 0:49:51.640 --> 0:49:53.879 sure there's capital out there, I wish there was more. 0:49:53.960 --> 0:49:55.840 I wish there was more going to more ideas that 0:49:55.840 --> 0:49:58.720 were based just on meritocracy and their actual traction versus 0:49:58.719 --> 0:50:00.560 the notion that they have AI in it. As bullish 0:50:00.560 --> 0:50:02.520 as I am on AI and investing in a personally 0:50:02.560 --> 0:50:05.600 to be abundantly clear, but it's an interesting moment right now, 0:50:05.760 --> 0:50:06.280 very interesting. 0:50:06.480 --> 0:50:09.000 I will only add that that is not too much 0:50:09.040 --> 0:50:12.000 different than what we've always seen. True, there's always been 0:50:12.040 --> 0:50:15.759 the bright, shiny object, and the investors feel like they 0:50:15.760 --> 0:50:16.560 got to follow that. 0:50:17.840 --> 0:50:20.360 Did you really start working for you in high school? 0:50:21.520 --> 0:50:23.960 That's fantastic, Gotta start them young. 0:50:24.040 --> 0:50:26.400 Yeah, talk about that off air, exactly right. 0:50:26.400 --> 0:50:29.160 Michael Lope, thank you so much, Founder CEO of Lobe 0:50:29.160 --> 0:50:32.120 dot NYC. And Noah Freedman, CEO of Uncharted. Thank you, 0:50:32.120 --> 0:50:34.200 gentlemen for being having a great conference today. I'll have 0:50:34.239 --> 0:50:37.120 a lot of great ideas circled about and a lot 0:50:37.160 --> 0:50:37.640 of great deals. 0:50:37.719 --> 0:50:38.279 Thanks for having me. 0:50:38.800 --> 0:50:41.040 Thanks to Michael Lobe, founder and CEO of Lobe dot 0:50:41.160 --> 0:50:44.920 NYC and Noah Friedman, CEO of Uncharted. Coming up on 0:50:44.960 --> 0:50:48.120 Bloomberg Business Week more from our visit to the Uncharted 0:50:48.120 --> 0:50:52.000 conference in the Hampton's held recently in Southampton. Paul Sweeney 0:50:52.239 --> 0:50:54.880 stays with me as we learn about AI's potential to 0:50:54.920 --> 0:50:58.160 replace human workers. It's a conversation and narrative that is 0:50:58.200 --> 0:51:00.000 gaining a lot of momentum that's coming up next. 0:51:00.280 --> 0:51:01.120 This is Bloomberg. 0:51:05.680 --> 0:51:09.560 This is the Bloomberg Business Week Daily Podcast. Listen live 0:51:09.640 --> 0:51:13.040 each weekday starting at two pm Eastern on Applecarplay and 0:51:13.120 --> 0:51:15.799 the Android Auto with the Bloomberg Business App. You can 0:51:15.800 --> 0:51:19.000 also listen live on Amazon Alexa from our flagship New 0:51:19.080 --> 0:51:22.480 York station, Just Say Alexa played Bloomberg eleven thirty. 0:51:23.719 --> 0:51:26.160 We're back here on this special holiday edition of Bloomberg 0:51:26.200 --> 0:51:29.440 Business Week, featuring some of our favorite conversations from the 0:51:29.480 --> 0:51:33.320 Uncharted Community Summit. It was held recently in Southampton in 0:51:33.400 --> 0:51:36.760 Michael Loebes's backyard. What we keep hearing from tech leaders, 0:51:36.800 --> 0:51:38.480 including those at some of the big ones. We're talking 0:51:38.520 --> 0:51:41.840 about Microsoft and Alphabet, how they talk about AI's potential 0:51:41.880 --> 0:51:45.880 and likelihood to replace human workers. Salesforce among the latest, 0:51:45.920 --> 0:51:49.600 noting its internal AI use has allowed it to hire 0:51:49.640 --> 0:51:52.920 fewer people. Kind of makes you say, uh, oh, Well. 0:51:52.920 --> 0:51:55.239 Someone who knows a lot about our changing workforce is 0:51:55.320 --> 0:51:59.360 Cheryl Grice. She is senior partner at the consulting giant EY. 0:51:59.480 --> 0:52:03.320 She's also global executive sponsor for the EY Entrepreneurial Winning 0:52:03.320 --> 0:52:04.640 Women's Global Program. 0:52:05.040 --> 0:52:05.680 She joined me and. 0:52:05.680 --> 0:52:08.279 Paul Sweeney to talk about her first visit well, this 0:52:08.360 --> 0:52:10.279 is your first one and you have clients and you 0:52:10.320 --> 0:52:12.640 deal with them. Tell us what you are hoping to 0:52:12.960 --> 0:52:15.239 get out of this, What are the conversations you're looking 0:52:15.239 --> 0:52:15.440 to have. 0:52:16.120 --> 0:52:19.319 Well, for us, we want to help our entrepreneurs really 0:52:19.440 --> 0:52:25.160 establish better community, better connections, and access access to capital 0:52:25.200 --> 0:52:28.320 in particular, so events like this go a long way 0:52:28.520 --> 0:52:31.960 to helping them get scaled in a way that they 0:52:31.960 --> 0:52:35.480 can't do by themselves. And this is like one event 0:52:35.480 --> 0:52:37.880 that brings it all together in such an amazing way. 0:52:38.520 --> 0:52:43.240 How do you bring capital and entrepreneurial ideas and talent together? 0:52:43.280 --> 0:52:44.080 How does that happen? 0:52:44.440 --> 0:52:45.520 How do you bring it together? 0:52:46.080 --> 0:52:52.359 Events like this have private investors, private equity, venture capital, bankers, etc. 0:52:53.200 --> 0:52:56.000 That are looking to find people that fit their mold 0:52:56.360 --> 0:52:59.120 for what they want to invest in. And so this 0:52:59.160 --> 0:53:03.239 is one stop shopping for hundreds of entrepreneurs to come 0:53:03.239 --> 0:53:06.759 in and find access like that. And these companies are 0:53:06.800 --> 0:53:07.600 here for that. 0:53:07.680 --> 0:53:09.440 Do you know what I never understand, Cheryl? We always 0:53:09.440 --> 0:53:11.440 talk about the world being a wash in capital. You know, 0:53:11.520 --> 0:53:14.680 everybody's starting private credit funds, There's plenty of money out there, 0:53:14.680 --> 0:53:18.040 but why is it so tough for smaller business, for startups? 0:53:18.040 --> 0:53:19.840 What is it that makes it so tough. 0:53:20.000 --> 0:53:21.719 I think you have to break down the startup in 0:53:21.760 --> 0:53:24.839 the population a little bit. I mean we often say 0:53:25.480 --> 0:53:28.480 in the statistics one bucket. It's not one bucket. Statistics 0:53:28.480 --> 0:53:32.000 haven't changed. For example, only two percent of the world's 0:53:32.040 --> 0:53:33.719 venture capital goes to females. 0:53:34.120 --> 0:53:34.480 Wow. 0:53:34.640 --> 0:53:37.160 So so when you can find an event like this 0:53:37.280 --> 0:53:39.319 and you can give them that kind of access where 0:53:39.320 --> 0:53:44.239 they can actually be ready, Like we do a lot 0:53:44.280 --> 0:53:47.040 of work at EY to get them ready for those 0:53:47.080 --> 0:53:51.319 conversations so that they can ask for the capital in 0:53:51.360 --> 0:53:53.760 a way that the VC wants to provide that capital, 0:53:53.880 --> 0:53:56.800 or a private equity or a bank or a private investor. 0:53:57.400 --> 0:53:59.239 There's a lot of work that goes into that, and 0:53:59.400 --> 0:54:03.480 not all of the same populations. A lot of the 0:54:03.480 --> 0:54:06.279 populations are overlooked. They don't get that same kind of 0:54:06.320 --> 0:54:09.560 coaching and council to be able to find that capital, 0:54:09.640 --> 0:54:10.280 to be able. 0:54:10.080 --> 0:54:12.560 To ask for it in a way that they'll get it. 0:54:13.320 --> 0:54:15.120 Kara and I were just talking with Noah Freeman, the 0:54:15.160 --> 0:54:17.440 CEO of and Charted, and he was saying, Wall, if 0:54:17.440 --> 0:54:18.440 you don't have AI. 0:54:18.280 --> 0:54:20.799 In your name, it's tough to attract capital. 0:54:20.840 --> 0:54:22.360 It's almost like the late nineties, if you didn't have 0:54:22.360 --> 0:54:24.600 a dot com at the end of your company's names, 0:54:24.600 --> 0:54:25.640 it's tough to raise capital. 0:54:25.680 --> 0:54:27.560 How do you How are you guys seeing that part 0:54:27.600 --> 0:54:28.160 of the business. 0:54:28.440 --> 0:54:31.440 Well, it's not just it's so funny through there's such 0:54:31.480 --> 0:54:33.400 an evolution. You know, in the two thousands, it was 0:54:33.440 --> 0:54:35.400 the Internet and e commerce, and then you go to 0:54:35.440 --> 0:54:37.359 two thousand and seven and to two thousand and nine, 0:54:37.360 --> 0:54:39.840 and it's all about social media and what are you 0:54:39.880 --> 0:54:42.359 doing where everything is transactive from the palm of your hand? 0:54:42.360 --> 0:54:45.239 And now it's AI. AI's been around for a long time, 0:54:45.280 --> 0:54:47.880 but it's AI. Where how are you using agents and 0:54:47.920 --> 0:54:52.400 agentic and so forth? To us, digital is a growth engine, 0:54:52.440 --> 0:54:54.760 but inclusiveness is also a growth engine. 0:54:54.760 --> 0:54:56.719 So it's not just about digital, it's about the. 0:54:56.640 --> 0:54:59.640 Communities that you're getting to be able to bring digital 0:54:59.680 --> 0:55:00.320 to life. 0:55:00.800 --> 0:55:01.680 So it's relevant. 0:55:01.840 --> 0:55:04.239 Well, that's really fascinating. You know, when you talk about women, 0:55:04.239 --> 0:55:06.400 you talk about minorities. And I'm going to go back 0:55:06.400 --> 0:55:08.000 to women for a moment because I remember a few 0:55:08.040 --> 0:55:10.080 years ago, and maybe this was coming off the pandemic, 0:55:10.239 --> 0:55:14.160 Bloomberg putting out a story that even female venture capitalists 0:55:14.680 --> 0:55:20.720 weren't really you know, more prone to maybe support female entrepreneurs. 0:55:21.160 --> 0:55:24.680 So again, how do we is is it an education 0:55:24.840 --> 0:55:27.800 Like I understand what you're saying about, like educating entrepreneurs 0:55:27.840 --> 0:55:30.160 so that when they have to talk to the folks 0:55:30.160 --> 0:55:32.440 that have the money, like it's the right conversation. But 0:55:32.480 --> 0:55:35.000 how do we really finally move some of that, whether 0:55:35.000 --> 0:55:37.719 it's for minorities, for women, really move the needle on that, 0:55:37.760 --> 0:55:42.239 because those are pockets of consumers and areas that can 0:55:42.280 --> 0:55:44.600 provide a lot of economic momentum, a lot of business. 0:55:45.160 --> 0:55:47.200 To me, there are three gaps at uy. We always 0:55:47.200 --> 0:55:48.040 say there's three gaps. 0:55:48.120 --> 0:55:51.319 There's do they have the community necessary so that they 0:55:51.400 --> 0:55:55.880 can stick together in their growth agenda and find like 0:55:55.920 --> 0:55:58.080 minded people that have been there before so that they 0:55:58.080 --> 0:56:01.000 can learn from those people. Then and there's the capital 0:56:01.040 --> 0:56:04.040 that we've already talked about. And then there's the connections. 0:56:04.920 --> 0:56:06.960 A lot of the connections are how do you educate 0:56:07.000 --> 0:56:09.040 yourself and get the right level of insights so that 0:56:09.080 --> 0:56:11.760 you can talk to a capital provider. 0:56:13.040 --> 0:56:15.120 Many people don't have that education. 0:56:15.880 --> 0:56:18.000 So for us, programs like the ones that we have, 0:56:18.080 --> 0:56:21.319 like on Chartered have they're intended to help them get 0:56:21.360 --> 0:56:25.759 those connections and the insights necessary to get access to 0:56:25.800 --> 0:56:32.160 those things. Vcs don't necessarily go after the underserved or 0:56:33.120 --> 0:56:36.520 overlooked populations because they just don't know how to communicate 0:56:36.640 --> 0:56:38.480 yet with the capital providers. 0:56:38.920 --> 0:56:40.120 Our job is to help them. 0:56:40.560 --> 0:56:43.480 What is the real opportunity for you today? What do 0:56:43.520 --> 0:56:46.200 you think is going to you're hoping to get together today? 0:56:46.320 --> 0:56:48.640 I want to meet thirty more entrepreneurs that I haven't 0:56:48.640 --> 0:56:51.759 met and help them with their journeys. My goal is 0:56:52.239 --> 0:56:53.920 to get them the things that they need so that 0:56:53.920 --> 0:56:56.680 we're not on the sidelines. We're very much in the 0:56:56.719 --> 0:56:58.600 mix with them to get them to the next level. 0:56:58.719 --> 0:57:00.320 Thirty seconds A success story. 0:57:00.880 --> 0:57:05.800 A success story, we watched a female entrepreneur who was 0:57:05.840 --> 0:57:08.560 one of our winning Women back in twenty fifteen create 0:57:08.600 --> 0:57:11.439 an adult beverage company as a school teacher and sell 0:57:11.480 --> 0:57:14.239 it for undisclosed amount. But we're guessing it's over a 0:57:14.280 --> 0:57:16.439 billion wow in the last year. 0:57:16.520 --> 0:57:20.520 So that's that's Cheryl grice Ey, Senior Partner for Global 0:57:20.520 --> 0:57:24.520 Client Services, Bloomberg's Paul Sweeney sticking around for our next conversation, 0:57:24.920 --> 0:57:27.120 and that was with Brett Markinson. He is founder and 0:57:27.200 --> 0:57:30.800 CEO of the in Event Capital Group. His company's website 0:57:30.880 --> 0:57:33.240 notes that he launched his firm as an incubator and 0:57:33.280 --> 0:57:37.560 platform for launching businesses that leverage disruptive technology to innovate 0:57:37.640 --> 0:57:40.560 old ways of doing things. We started by asking Brett 0:57:40.720 --> 0:57:44.560 what he is hearing from attendees of the Uncharted Community Summit. 0:57:45.000 --> 0:57:49.440 Everybody's talking their bod to the Bloomberg Business Weekdaily podcast, 0:57:49.760 --> 0:57:52.880 Catch us Lived at. 0:57:57.720 --> 0:57:58.840 Watch us live on. 0:57:58.800 --> 0:58:03.280 YouTube, And I just kind of personally enjoy the origin stories. 0:58:03.360 --> 0:58:05.240 So I try to spend as much time as I 0:58:05.280 --> 0:58:08.520 can understanding how people got to where they are by 0:58:08.560 --> 0:58:09.400 way of where they came. 0:58:09.560 --> 0:58:12.080 All Right, it's like a gift when someone says that, 0:58:12.120 --> 0:58:14.080 because I want to talk about your origin story a 0:58:14.120 --> 0:58:17.600 little bit. Media folks were kind of obsessed with media 0:58:17.720 --> 0:58:19.640 caning us back to the nineties. You were selling non 0:58:19.720 --> 0:58:25.840 linear digital editing base tollies. No, but it's like all 0:58:25.880 --> 0:58:30.000 these things shape us. I remember doing, you know, paper prompters. 0:58:30.040 --> 0:58:33.280 I'm going to age myself. It's very different nowadays. So 0:58:33.640 --> 0:58:35.440 tell us about what that was like and how it 0:58:35.480 --> 0:58:37.680 does shape your perspective as you see things change. 0:58:37.720 --> 0:58:37.959 Sure. 0:58:38.080 --> 0:58:41.360 Well, first of all, like any early stage business, it 0:58:41.440 --> 0:58:47.560 was brutal I think what made this challenging was whenever 0:58:47.600 --> 0:58:50.640 you're too far in front of something, it's very difficult 0:58:50.760 --> 0:58:53.720 selling vision to the visionless, and people have a lot 0:58:53.920 --> 0:58:56.320 invested in the way they're doing things and the way 0:58:56.400 --> 0:58:59.480 things were. In the case of nonlinear editing, I think 0:58:59.520 --> 0:59:03.200 what made that's so difficult was the editor was very 0:59:03.200 --> 0:59:07.000 comfortable in the basement by himself with no oversight and 0:59:07.200 --> 0:59:10.960 not having too much of the producer in over his 0:59:11.400 --> 0:59:13.960 kind of shoulder telling him how to do things. And 0:59:14.000 --> 0:59:17.600 the nonlinear editing system just changed the landscape entirely because 0:59:17.600 --> 0:59:19.640 now the producer was able to kind of be involved 0:59:19.640 --> 0:59:24.120 in the editing process and brought the guy upstairs, surrounded 0:59:24.160 --> 0:59:27.520 him with a whole bunch of people, and the efficiencies 0:59:27.640 --> 0:59:31.760 that it brought were incredible and the impact indelible. But 0:59:32.280 --> 0:59:34.240 to a lot of editors it really changed the way 0:59:34.280 --> 0:59:36.400 they thought about what they did and how they did it. 0:59:36.480 --> 0:59:40.560 So getting it to take took some time, but like 0:59:40.800 --> 0:59:44.760 anything wants to damn cracked, it just became a floodgate. 0:59:44.880 --> 0:59:47.120 Is internet or AI right, Like it's kind of the 0:59:47.160 --> 0:59:48.400 same story. 0:59:48.600 --> 0:59:52.120 Hey, bred, you're on a panel today talking about exits. Yes, 0:59:53.320 --> 0:59:55.080 I haven't seen a lot of IPOs in the last 0:59:55.080 --> 0:59:56.640 few years. I haven't seen a lot of M and 0:59:56.680 --> 0:59:59.120 A in the last five years. How did guys like 0:59:59.200 --> 1:00:01.480 you and the folks here. They've got an idea, they 1:00:01.520 --> 1:00:03.280 get it funded, they get it off the ground, and 1:00:03.320 --> 1:00:06.439 now they're thinking about an exit, a monetization event. Where 1:00:06.440 --> 1:00:07.480 are we today in that environment? 1:00:07.520 --> 1:00:10.800 Well, when I start at the very early stage, a 1:00:10.840 --> 1:00:12.919 little north of the napkin, I like to call it. 1:00:13.120 --> 1:00:17.840 And for companies like that, it oftentimes doesn't make a 1:00:17.840 --> 1:00:21.400 lot of news in terms of acquisitions, but there's plenty 1:00:21.440 --> 1:00:23.960 of that stuff happening. In a lot of cases. They're 1:00:24.040 --> 1:00:27.960 accu hiers that you hear about. So in the end, 1:00:28.040 --> 1:00:31.000 it really comes down to a couple of very key things. 1:00:31.040 --> 1:00:36.640 Building a great product, validating it with solid product market fit, 1:00:37.520 --> 1:00:41.200 finding and understanding those customers and getting those customers to 1:00:41.280 --> 1:00:43.760 accept your product and tell other customers. And once you 1:00:43.880 --> 1:00:48.080 get that flywheel moving, it's kind of a snowball rolling 1:00:48.120 --> 1:00:49.520 down a hill and it kind of takes on a 1:00:49.560 --> 1:00:54.160 momentum of its own. And if you reach that capacity 1:00:54.480 --> 1:00:59.320 for your business where you are growing and need help, 1:01:00.000 --> 1:01:03.000 capital finds you. And as capital is hunting for you, 1:01:03.080 --> 1:01:06.040 so are other larger businesses that want access to your 1:01:06.040 --> 1:01:08.680 customers and want access to what you're doing. So at 1:01:08.680 --> 1:01:11.760 the very early stage of things, it's not too difficult 1:01:11.800 --> 1:01:14.520 to be able to find exit opportunities. It just depends 1:01:14.560 --> 1:01:16.520 on whether or not you're able to find product market 1:01:16.520 --> 1:01:18.960 fit and demonstrate that. 1:01:19.080 --> 1:01:21.160 How often, though, is it for an entrepreneur bread, is 1:01:21.200 --> 1:01:23.120 it just tough for them to let go after they've 1:01:23.160 --> 1:01:25.400 started a company and they realize it's time for them 1:01:25.440 --> 1:01:28.200 to either sell merged, I mean, in order to take 1:01:28.240 --> 1:01:30.840 it to the next level, Like, how difficult and how 1:01:30.840 --> 1:01:32.720 often does that happen where it's just time that they 1:01:32.760 --> 1:01:33.520 need somebody else? 1:01:33.520 --> 1:01:36.480 Now, that's it's an interesting question, but I think the 1:01:36.520 --> 1:01:39.480 answer is emotional. Yeah, And I think people with high 1:01:39.520 --> 1:01:43.840 eqs are capable of seeing that they're in over their 1:01:43.880 --> 1:01:46.160 head or to get to the next level, they need 1:01:46.200 --> 1:01:50.280 competence beyond their capability or skill set, and for some 1:01:50.600 --> 1:01:54.000 they just can't see the forest through the trees, and 1:01:54.760 --> 1:01:57.400 it becomes a very emotional thing. You know, you have 1:01:57.480 --> 1:02:02.920 a whole persona and identity that has been formed around 1:02:02.960 --> 1:02:05.320 this thing that you brought to life. You know, I 1:02:05.360 --> 1:02:08.680 oftentimes think about startups is giving birth to a child 1:02:08.720 --> 1:02:09.400 in the ICU. 1:02:10.440 --> 1:02:10.680 Wow. 1:02:11.080 --> 1:02:12.680 Thanks check it is. 1:02:13.280 --> 1:02:17.480 You know your kids in good hands. All the appropriate 1:02:17.520 --> 1:02:20.000 people are there on a twenty four to seven basis, 1:02:20.400 --> 1:02:21.760 but it's still touch and go. 1:02:22.160 --> 1:02:25.360 That's Brett Markinson, founder and CEO of in Event Capital Group. 1:02:26.000 --> 1:02:28.360 Still ahead on Bloomberg Business Week. More from our visit 1:02:28.400 --> 1:02:32.240 to Michael Loeb's Uncharted conference recently in Southampton. We'll hear 1:02:32.280 --> 1:02:35.640 about investing in women's health and how Washington policy might 1:02:35.680 --> 1:02:38.400 be impacting all of that. That's coming up next. This 1:02:38.520 --> 1:02:39.160 is Bloomberg. 1:02:42.320 --> 1:02:46.280 You're listening to the Bloomberg Business Weekdaily Podcast. Catch us 1:02:46.360 --> 1:02:49.840 live weekday afternoons from two to five pm Eastern. Listen 1:02:49.840 --> 1:02:53.440 on Apple CarPlay and Android Auto with the Bloomberg Business app, 1:02:53.560 --> 1:02:56.160 or watch us live on YouTube. 1:02:56.960 --> 1:02:59.280 We'll back here on our special holiday edition of Bloomberg 1:02:59.320 --> 1:03:03.120 Business Week, continuing to highlight some of our favorite conversations 1:03:03.400 --> 1:03:07.720 from the Uncharted Community Summit, which was held recently in Southampton, 1:03:07.800 --> 1:03:11.920 in fact, in Michael Loeb's backyard. Returned out to Jessica Kamada. 1:03:12.080 --> 1:03:14.920 She's founder managing partner at Swizzle Ventures, a new venture 1:03:14.960 --> 1:03:18.240 capital firm that's raised a fund to focus on women's 1:03:18.280 --> 1:03:21.880 health caregiving, and financial health. We started by asking her 1:03:21.920 --> 1:03:25.040 what she looks for in a company before deciding to invest. 1:03:25.480 --> 1:03:28.960 We're looking at really the course of a woman's lifetime 1:03:29.480 --> 1:03:33.720 and investing in companies that advance women's health and wealth through. 1:03:33.520 --> 1:03:34.600 Pivotal life stages. 1:03:35.280 --> 1:03:38.960 We see three sectors as really billing the gaps for 1:03:39.000 --> 1:03:43.320 women over those three over those life stages, so healthcare, 1:03:43.480 --> 1:03:48.200 physical health care, caregiving responsibilities on the elder side, and 1:03:49.000 --> 1:03:51.520 early childcare, and then financial health. 1:03:52.680 --> 1:03:55.480 I want to say good, good, good, because especially when 1:03:55.480 --> 1:03:57.400 you get just down to medical health and health care, 1:03:57.560 --> 1:03:59.640 it's just so behind even R and D, and it's 1:03:59.680 --> 1:04:02.280 just amazing. Even I don't want to do a blanket 1:04:02.320 --> 1:04:05.560 statement about professionals in the field, but I just hear 1:04:05.600 --> 1:04:07.520 over and over again women who go in and it's 1:04:07.600 --> 1:04:11.240 just things are ignored said, it's not anything, and things 1:04:11.240 --> 1:04:13.200 that turn out to be things. So how do we, like, 1:04:13.400 --> 1:04:16.640 how can you, through VC venture and investing kind of 1:04:16.720 --> 1:04:17.320 change some of that? 1:04:17.960 --> 1:04:18.200 Yeah. 1:04:18.240 --> 1:04:18.840 Absolutely. 1:04:18.960 --> 1:04:21.480 I think it's a little known fact that we only 1:04:21.520 --> 1:04:25.040 have thirty four years of women's health research. We were 1:04:25.080 --> 1:04:29.280 only included in clinical trials since nineteen ninety three on 1:04:29.400 --> 1:04:34.480 NIHU manity, it's insane. So when we go into the 1:04:34.520 --> 1:04:38.480 doctor's office, it actually it's actually just lack of education 1:04:38.960 --> 1:04:42.600 on MD's front. I mean, they only get four hours 1:04:42.600 --> 1:04:46.360 of menopause training in their entire you know, eight years 1:04:46.400 --> 1:04:49.520 of training, So some of it is not actually their fault, 1:04:50.440 --> 1:04:52.280 but the research just has to catch up and the 1:04:52.400 --> 1:04:54.520 education of the system has to catch up. 1:04:54.600 --> 1:04:55.040 So it's a. 1:04:55.080 --> 1:04:57.040 Shocking Can I just ask you them, is that research 1:04:57.080 --> 1:04:58.760 being hurt by what's been going on in the government 1:04:58.880 --> 1:04:59.960 and cuts. 1:04:59.800 --> 1:05:04.240 The We are like very much looking at the cuts, yeah, 1:05:04.440 --> 1:05:09.520 because I think if they're they did initially say that 1:05:09.520 --> 1:05:12.720 they were going to cut a longitudinal study that has 1:05:12.760 --> 1:05:16.600 been going on for thirty years. They reinstated that until 1:05:16.600 --> 1:05:20.280 at least January twenty twenty six, so we're now watching 1:05:20.480 --> 1:05:23.480 that and if they cut it, then you know, we're 1:05:23.480 --> 1:05:27.240 going to lose thirty years of launchitudel data that we've 1:05:27.280 --> 1:05:30.360 been collecting over you know, with women over the course 1:05:30.400 --> 1:05:31.240 of their lifetime. 1:05:31.720 --> 1:05:36.400 So we are looking at that from a research perspective. 1:05:36.840 --> 1:05:39.360 But I think what's amazing and where tech comes into 1:05:39.360 --> 1:05:42.640 play is that these tech companies, especially with AI, are 1:05:42.720 --> 1:05:48.160 now creating their own data sets to help empower these researchers. 1:05:48.640 --> 1:05:51.400 So how would it change your opportunities as a venture 1:05:51.440 --> 1:05:55.880 capitalist if those cuts were to happen, And if we 1:05:55.920 --> 1:05:57.959 do see a pullback in funding from Washington, we've already 1:05:57.960 --> 1:06:01.120 seen a pullback in funding at least to university to research. 1:06:01.160 --> 1:06:02.600 We talk to a lot of venture capitalists in the 1:06:02.600 --> 1:06:05.919 biotech space about this. Does that make your job more 1:06:05.920 --> 1:06:09.920 difficult because there will be fewer founders out there chasing 1:06:09.960 --> 1:06:14.160 opportunities or does it shut opportunities shut opportunities off for you? 1:06:15.040 --> 1:06:18.280 I think one main, one major concern in the research 1:06:18.640 --> 1:06:21.400 in biotech world and also VCS is just a brain 1:06:21.480 --> 1:06:29.040 drain like these. You know, the tech companies are built 1:06:29.240 --> 1:06:32.120 on the research that has been created over the last 1:06:32.160 --> 1:06:35.240 thirty years or so. Now that we have AI, they 1:06:35.280 --> 1:06:38.800 can finally do something with that data, create personalized care plans, 1:06:39.040 --> 1:06:42.280 et cetera. But if the underlying data is not there 1:06:42.320 --> 1:06:44.480 and that doesn't progress, then it's a lot harder to 1:06:44.480 --> 1:06:45.680 build on top of it. 1:06:46.160 --> 1:06:46.560 And. 1:06:47.880 --> 1:06:52.400 Funding research is not really in the VC model, So 1:06:52.520 --> 1:06:54.760 we can only fund the companies that are built on 1:06:54.800 --> 1:06:57.520 top of that research, and we have to rely on 1:06:57.680 --> 1:07:02.440 federal funding on other rants, on philanthropy to fund the 1:07:02.440 --> 1:07:05.920 actual research that's underline. So my concern is that if 1:07:05.920 --> 1:07:08.080 we're funding companies that are going to be great ten 1:07:08.160 --> 1:07:11.480 years from now, then like what do I fund ten 1:07:11.560 --> 1:07:14.480 years from now? If that if that research doesn't continue 1:07:14.560 --> 1:07:15.560 at the clip it is today. 1:07:15.560 --> 1:07:18.200 We're tied with Jessica Kamada, founder and managing partner at 1:07:18.200 --> 1:07:21.160 Swizzle Ventures. You initially said it's divided into kind of 1:07:21.160 --> 1:07:23.400 three buckets, right, you chalked about healthcare, you talk about 1:07:23.440 --> 1:07:26.600 caregiving and check financial health. Where are you finding the 1:07:26.600 --> 1:07:30.400 most kind of entrepreneurs doing things? Is it equal? Are 1:07:30.440 --> 1:07:32.400 there certain buckets that are you know, people that are 1:07:32.400 --> 1:07:34.040 starting different companies? What do you find it. 1:07:34.680 --> 1:07:38.480 We've funded twenty portfolio companies in this current fund and 1:07:38.520 --> 1:07:43.760 they're pretty split evenly among the three sectors. I would 1:07:43.840 --> 1:07:49.800 say that in the caregiving sector, we're finding the most 1:07:49.800 --> 1:07:51.960 opportunities in eldercare right now. 1:07:51.760 --> 1:07:53.520 Just because of the population progression play. 1:07:53.520 --> 1:07:56.480 I feel like with everything, it's a huge play's and 1:07:56.520 --> 1:08:01.840 it's also something that is just undoubted. It's a bipartisan issue. 1:08:02.240 --> 1:08:06.479 No one is gonna, you know, say, like argue that 1:08:07.280 --> 1:08:09.400 the population is not aging, right, So it's something that 1:08:09.440 --> 1:08:13.800 everyone agrees on and knows that the healthcare system will 1:08:13.840 --> 1:08:16.080 be overwhelmed if we do not do something about it. 1:08:16.120 --> 1:08:19.400 But that's very employee intensive, that's very human intensive. And 1:08:19.439 --> 1:08:24.000 there's been a lot of commentary about the immigrant labor 1:08:24.080 --> 1:08:26.640 that actually does a lot of the caregiving of elders 1:08:26.920 --> 1:08:29.360 in the United States and potentially how that will be affected. 1:08:30.760 --> 1:08:33.240 Can this be solved with technology? I mean what it's 1:08:33.400 --> 1:08:36.559 same with child like with with with caregiving for children, 1:08:36.600 --> 1:08:39.040 like you need people to do that. How do you 1:08:39.080 --> 1:08:41.479 how do you take a venture capitalist approach to this stuff? 1:08:42.600 --> 1:08:45.839 Yeah, part of it is trying to fix the system 1:08:45.960 --> 1:08:50.840 and finding business models that are aligning all the incentives 1:08:50.880 --> 1:08:53.599 at play, because a lot of it is just like incentives, right, 1:08:53.800 --> 1:08:56.840 And the issue with human caregivers is that it's a 1:08:56.960 --> 1:08:59.599 ruthless job. There's a lot of high turnover in it. 1:09:00.320 --> 1:09:05.000 For example, one company that's here Ruby, well they enable 1:09:05.120 --> 1:09:09.679 family caregivers to get paid through Medicare benefits that already exist. 1:09:10.400 --> 1:09:14.799 So it's really about helping people navigate the system that's. 1:09:14.640 --> 1:09:17.080 So tricky and gate kept to figure out. 1:09:17.320 --> 1:09:19.880 But those dollars are there, they just can't They just 1:09:19.920 --> 1:09:23.919 need help accessing them. And they work with the basically 1:09:23.920 --> 1:09:27.080 staffing agencies, the home healthcare agencies that. 1:09:27.160 --> 1:09:27.719 Do that work. 1:09:27.840 --> 1:09:30.400 How easy is it for you to get capital and 1:09:30.520 --> 1:09:35.479 create funds? She laughs? 1:09:35.600 --> 1:09:40.680 It was not as challenging as I had expected. However, 1:09:41.160 --> 1:09:43.360 this was the first environment that I have raised a 1:09:43.400 --> 1:09:46.599 fund in versus being in marketing in market in twenty 1:09:46.640 --> 1:09:49.200 twenty one when I have heard that dollars were falling 1:09:49.240 --> 1:09:53.280 from this guy. So one of the things about my 1:09:53.360 --> 1:09:57.160 thesis is that it's very relatable. Every single human has 1:09:57.200 --> 1:09:59.599 struggled through a personal pivotal life. 1:09:59.400 --> 1:10:02.599 Stage, be a man or woman, right, And. 1:10:02.560 --> 1:10:06.719 I think that relatability has helped me to for investors 1:10:06.760 --> 1:10:08.200 to understand what I'm trying to build. 1:10:08.000 --> 1:10:11.519 But even women specifically, like is there always it's it's 1:10:11.560 --> 1:10:14.960 a little trickier, right, when it's it's a little trick 1:10:15.040 --> 1:10:16.760 these issues, I feel like it's a. 1:10:16.680 --> 1:10:22.599 Little trickier until you dig in to say, to explain 1:10:22.640 --> 1:10:25.720 the economic opportunity, I mean, investing in women's health is 1:10:25.720 --> 1:10:30.759 a one trillion dollar market, three hundred and twenty billion 1:10:30.760 --> 1:10:34.679 in the US alone, So when you really uncover the 1:10:34.800 --> 1:10:39.120 numbers behind the opportunity, it's far larger than people expect. 1:10:39.280 --> 1:10:42.680 And that people typically what I lead with. Yeah, and 1:10:42.760 --> 1:10:45.320 from a help and from a wealth perspective when we 1:10:45.360 --> 1:10:49.200 think about the great wealth transfer already in play. 1:10:50.600 --> 1:10:51.240 Yeah, go ahead. 1:10:51.360 --> 1:10:53.760 Well I don't mean to sound glib, but if you 1:10:53.800 --> 1:10:57.400 were to sort of look at the categories that might 1:10:57.439 --> 1:11:02.120 be the least challenging to disrupt through venture capital and 1:11:02.160 --> 1:11:05.760 through funding companies, it wouldn't be these categories. I mean, 1:11:05.800 --> 1:11:11.720 these are these are categories that are ripe with regulation. Yes, 1:11:12.080 --> 1:11:15.280 there are categories that aren't necessary. It's not like you're 1:11:15.280 --> 1:11:18.120 creating an app, you know, there are sometimes you are 1:11:18.280 --> 1:11:21.200 human capital intensive though, like this is this is a 1:11:21.240 --> 1:11:23.640 really challenging space I think is that is am I 1:11:23.760 --> 1:11:27.160 am I wrong about that? Like I know, but like 1:11:27.200 --> 1:11:30.680 all venture capital stuff, thanks Carol, but like you know, 1:11:30.720 --> 1:11:32.680 all all all that, this is really tough stuff. But 1:11:32.680 --> 1:11:34.600 it's like you see the way money is flowing for 1:11:34.680 --> 1:11:38.000 like AI agents and like companies that are built on 1:11:38.120 --> 1:11:41.439 chat GPT, that that seems to be the path of 1:11:41.520 --> 1:11:42.639 least resistance right now. 1:11:42.880 --> 1:11:45.360 So I was at a consumer AI summit and a 1:11:45.360 --> 1:11:50.040 lot of the companies were creating like shop like connecting 1:11:50.040 --> 1:11:52.680 you to the right clothes, and like things that are 1:11:52.920 --> 1:11:55.439 really fun, and there does need to be fun in 1:11:55.520 --> 1:11:58.000 consumer AI does need to be fun to use, but 1:11:58.080 --> 1:12:03.160 it also needs to be helping, like very foundational human things, 1:12:04.200 --> 1:12:08.280 and it can do that as well. Like sometimes I 1:12:08.320 --> 1:12:12.639 think in these categories it doesn't actually need to be flashy. 1:12:12.720 --> 1:12:16.000 It just needs to solve a problem. Like for instance, 1:12:16.520 --> 1:12:18.639 we have some companies that are not that high tech. 1:12:18.800 --> 1:12:24.559 It's you know, a mental health company where they're just 1:12:25.439 --> 1:12:29.719 providing access to mental health professionals after you have a baby, 1:12:29.800 --> 1:12:33.479 which is a leading cause of maternal death. And it's 1:12:33.479 --> 1:12:36.040 like it's not that hard or a concept, and it 1:12:36.080 --> 1:12:39.160 doesn't really require AI. It's just filling a need that 1:12:39.200 --> 1:12:42.080 didn't exist before. And there are so many more of 1:12:42.120 --> 1:12:45.360 those in women's health and these categories because they've been 1:12:45.360 --> 1:12:49.040 so overlooked and underinvested in. So yes, we have fancy 1:12:49.080 --> 1:12:52.880 AI companies like investment platforms directed at gen z. 1:12:54.560 --> 1:13:00.160 Or like hormone hormonal monitors. 1:12:59.560 --> 1:13:02.760 That you can you at home, but some of them 1:13:02.800 --> 1:13:04.439 are not as high tech and they don't need to be. 1:13:05.760 --> 1:13:10.200 What would surprise somebody about investing in this space. I 1:13:10.240 --> 1:13:12.000 know you talked about the economics, which I thought was 1:13:12.000 --> 1:13:13.800 really kind of telling some of the numbers right, because 1:13:13.800 --> 1:13:15.599 when people see I'm sure hear that, they're like, oh, 1:13:15.600 --> 1:13:18.160 I get it right, this is a really untap marketplace. 1:13:18.400 --> 1:13:19.400 Why aren't we doing more? 1:13:19.439 --> 1:13:22.320 But I'm just curious, as you've been like talking to 1:13:22.479 --> 1:13:27.240 entrepreneurs thinking about you know, initiatives specifically that fall into 1:13:28.040 --> 1:13:29.840 you know, women's fields. 1:13:30.400 --> 1:13:33.320 I think people are surprised at how much deal flow 1:13:33.360 --> 1:13:36.479 there actually is and how many people are building in 1:13:36.520 --> 1:13:37.840 these spaces. 1:13:37.920 --> 1:13:39.480 Because they're building for themselves. 1:13:39.560 --> 1:13:43.040 Typically, they're building because they see a need of their 1:13:43.080 --> 1:13:45.240 own in their own life that was un through one 1:13:45.240 --> 1:13:47.720 of these pivotal life stages, right, and they don't see 1:13:47.760 --> 1:13:50.880 anyone else tackling it, and so they go forward themselves. 1:13:51.080 --> 1:13:51.559 It's funny. 1:13:51.560 --> 1:13:54.040 That's what Bill Harris said formally of PayPal, and he 1:13:54.080 --> 1:13:58.120 said his current investment firm, it was something he wanted, 1:13:58.160 --> 1:14:00.240 he needed, and that's what he created, Like makes most 1:14:00.240 --> 1:14:02.799 sense for entrepreneurs to be doing that. That's Jessica Kamad, 1:14:02.840 --> 1:14:04.920 a founder and managing partner at Swizzle Venture. As you 1:14:04.960 --> 1:14:07.000 can hear all of our conversations from the event, just 1:14:07.080 --> 1:14:10.120 head to Bloomberg dot com or check out our podcast feed, 1:14:10.479 --> 1:14:12.839 and that wraps up the Weekend edition, a special holiday 1:14:12.840 --> 1:14:15.559 weekend edition of Bloomberg Business Week from Bloomberg Radio. Thank 1:14:15.560 --> 1:14:17.599 you so much for joining us. Be sure to tune 1:14:17.600 --> 1:14:20.479 into Bloomberg BusinessWeek Daily Monday through Friday starting at two 1:14:20.560 --> 1:14:23.640 pm Wall Street Time on Bloomberg Television, Bloomberg Radio, and 1:14:23.720 --> 1:14:26.559 on Series XM Channel one twenty one. You can listen 1:14:26.560 --> 1:14:29.600 to us on Applecarplay and Android Auto. It's free in 1:14:29.640 --> 1:14:32.200 the Apple app Store or on Google Play. You can 1:14:32.200 --> 1:14:35.560 also watch our daily broadcast on YouTube, just search Bloomberg Podcasts, 1:14:35.800 --> 1:14:39.040 or simulcast on Bloomberg Originals available at Bloomberg dot com, 1:14:39.040 --> 1:14:43.839 Slash Originals, and streaming platforms including Roku, Amazon, fireTV, Samsung 1:14:43.960 --> 1:14:47.919 TV Plus and more. Find our Bloomberg BusinessWeek Daily Podcast 1:14:47.920 --> 1:14:50.600 at Bloomberg dot com, Apple, or wherever you get your podcast, 1:14:50.880 --> 1:14:53.520 and the latest edition of the magazine available on newsstands 1:14:53.520 --> 1:14:56.559 now at Bloomberg dot com always on the Bloomberg terminal. 1:14:56.960 --> 1:14:59.840 I'm Carol Masser along with Tim Stenoveek. 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