WEBVTT - TikTok's Problematic "Challenges" 0:00:02.240 --> 0:00:05.560 From the heart of where innovation, money and power collive 0:00:06.360 --> 0:00:10.879 in silicon vallet and beyond. This is Bloomberg technology with 0:00:10.960 --> 0:00:27.560 Emily Jay. I'm Emily Jack in San Francisco, and this 0:00:27.560 --> 0:00:30.640 is Bloomberg technology. Coming up in the next hour. TIKTOK 0:00:30.760 --> 0:00:34.320 is under fire over a challenge that involves cooking chicken 0:00:34.800 --> 0:00:37.720 with NAI quill. N Have the details on the stunt 0:00:37.760 --> 0:00:41.240 that led to a warning from the F D A. 0:00:41.240 --> 0:00:43.640 Will slayer hippo is looking for the next big thing 0:00:43.840 --> 0:00:47.240 after closing two million dollars in new funding. I'll talk 0:00:47.280 --> 0:00:52.200 to Eric Hippo about their next move. And first on Bloomberg, 0:00:52.280 --> 0:00:55.760 outgoing CEO, crack of crack, and Jesse Powell talks about 0:00:55.760 --> 0:00:58.760 why he is stepping down. Also, we'll ask what you 0:00:58.800 --> 0:01:02.279 thinks about JP morgans. You, Jamie diamond, calling crypto tokens 0:01:02.560 --> 0:01:08.240 decentralized ponzi schemes. Turning to the two big stories regarding Tiktok, 0:01:08.680 --> 0:01:11.640 the F D A has issued a warning that a 0:01:11.720 --> 0:01:15.760 new tiktok challenge could be dangerous, the so called sleepy 0:01:15.840 --> 0:01:20.319 chicken challenges, when people cook their chicken in Ni Quill. Meantime, 0:01:20.360 --> 0:01:23.720 TIKTOK will ban fundraising and all other money making opportunities 0:01:23.720 --> 0:01:26.920 for politicians and government accounts on the platform here to 0:01:26.920 --> 0:01:30.360 discuss Bloomberg's Alex barrinkle. Let's start with the challenge. How 0:01:30.400 --> 0:01:32.600 big did this one have to get for the F 0:01:32.760 --> 0:01:36.639 D A to weigh in? It got big enough for 0:01:37.200 --> 0:01:40.319 parents and folks to complain, which is typically what happens 0:01:40.319 --> 0:01:43.280 with these companies. Um, the social platforms will play a 0:01:43.319 --> 0:01:47.120 little bit of whack a mole Um searching down these challenges, 0:01:47.200 --> 0:01:49.840 these fads. We saw it with a really dangerous tide 0:01:49.880 --> 0:01:51.840 pod challenge of a few years ago on some of 0:01:51.840 --> 0:01:54.720 the other social platforms. But this one, emily, Um, the 0:01:54.760 --> 0:01:57.960 sleepy chicken challenge, it does seem like tiktok snuff this 0:01:57.960 --> 0:02:01.040 one out. If you search for that term right now 0:02:01.040 --> 0:02:03.600 in the APP, it sends you to a warning basically 0:02:03.680 --> 0:02:07.960 about dangerous challenges and dangerous fads. I will say there 0:02:07.960 --> 0:02:11.600 are a lot of kind of Um, scary type challenges, 0:02:11.720 --> 0:02:14.840 weird information that POPs up on the platforms that doesn't 0:02:14.840 --> 0:02:17.280 always get folks like the FDA to get involved. So 0:02:17.520 --> 0:02:19.919 clearly this was one that they felt like they needed 0:02:19.960 --> 0:02:22.680 to jump in on. And Emily, I will say you 0:02:22.680 --> 0:02:25.600 search for sleepy chicken. Those posts have been taken down. 0:02:25.919 --> 0:02:28.320 You search for some names that are misspelled or you 0:02:28.400 --> 0:02:30.760 had a few letters in there and those words are 0:02:30.800 --> 0:02:33.760 still up, which I just think illustrates the challenge these 0:02:33.800 --> 0:02:37.480 platforms have when it comes to locking down a misinformation 0:02:37.560 --> 0:02:41.480 like this. Yeah, we found some of them but decided 0:02:41.560 --> 0:02:45.560 not to show them to our viewers for obvious reasons. 0:02:45.919 --> 0:02:49.120 Um and and perhaps even bigger news, this decision on 0:02:49.520 --> 0:02:52.520 politicians and governments and not allowing them to make money 0:02:52.840 --> 0:02:57.280 on the platform. Can you explain how this works? Sure, 0:02:57.400 --> 0:03:00.959 of course. TIKTOK came out today basically with a pretty 0:03:01.000 --> 0:03:06.320 significant expansion of its ban on political ads political content 0:03:06.600 --> 0:03:09.760 ahead of the U S midterms. In in the past, historically, 0:03:09.760 --> 0:03:14.320 Tiktok has banned political advertisements from governments, from politicians. Now 0:03:14.320 --> 0:03:18.200 it's taking that a step further and saying these individuals 0:03:18.240 --> 0:03:22.280 also cannot fund raise. So there is no soliciting of 0:03:22.320 --> 0:03:25.919 campaign donations, there's no asking for money if you're a 0:03:25.919 --> 0:03:29.440 politician or you're a government or government entity. They also 0:03:29.520 --> 0:03:32.840 are banning these accounts from accessing any of the money 0:03:32.880 --> 0:03:35.480 making tools on the platform. That can be things like 0:03:35.600 --> 0:03:40.200 tipping from users or gifting or things like the Creator Fund, 0:03:40.280 --> 0:03:42.920 which is a fund Um that pays out users with 0:03:42.960 --> 0:03:45.680 a lot of followers for the number of views and 0:03:45.800 --> 0:03:48.840 engagements they get on the APP. So you've heard this 0:03:48.960 --> 0:03:52.920 argument before, Emily from TIKTOK. You heard Tiktok CEO in 0:03:52.920 --> 0:03:55.360 front of a Senate panel make this argument last week. 0:03:55.560 --> 0:03:58.920 Tiktok likes to attest that they are an entertainment platform, 0:03:59.160 --> 0:04:02.280 they're not a place for politics. Some of these Um 0:04:02.280 --> 0:04:06.040 prohibitions and moderating of the of this type of content 0:04:06.160 --> 0:04:08.880 kind of backs that up. Um, but it is a 0:04:09.080 --> 0:04:12.120 very notable kind of piece of News, particularly in this 0:04:12.200 --> 0:04:15.200 election season and as we start to get fired up 0:04:15.240 --> 0:04:18.120 about the next presidential election, which will come closely on 0:04:18.120 --> 0:04:21.159 the heels of the mid terms this year and quickly. 0:04:21.200 --> 0:04:24.640 How does this compared to what Meta, instagram, you know, twitter, 0:04:25.160 --> 0:04:28.800 have done in terms of their stance on politicians making money? 0:04:29.720 --> 0:04:33.920 Absolutely so. TIKTOK and twitter both have completely banned political ads. 0:04:33.960 --> 0:04:36.960 So there is no kind of money making there. On 0:04:37.040 --> 0:04:40.480 metas platform, facebook and Instagram, those ads are still able 0:04:40.520 --> 0:04:43.280 to be up there. I've still seen content on those 0:04:43.279 --> 0:04:46.919 platforms soliciting donations. So it does seem like Tiktok is 0:04:46.920 --> 0:04:50.480 taking a step further than some of its big tech peers. Um. 0:04:50.520 --> 0:04:53.360 But you know, as this evolves in social media platforms 0:04:53.360 --> 0:04:55.600 tend to exchange ideas. It will be a place that 0:04:55.640 --> 0:04:58.600 I'll certainly be watching them more closely, particularly if there's 0:04:58.600 --> 0:05:01.599 any kind of duff steps with facebook or instagram in 0:05:01.600 --> 0:05:05.679 this election season. All right, Bloomberg's Alex Barenka. Thank you 0:05:05.960 --> 0:05:18.960 very much, Claire. Hippo, one of New York's top venture 0:05:19.000 --> 0:05:22.040 capital firms, just announced plans to invest two thirty million 0:05:22.080 --> 0:05:25.960 dollars across a couple of fun that seed at earlier stages. 0:05:26.279 --> 0:05:28.839 Ben Lair is also back as a full time investor. 0:05:28.960 --> 0:05:31.520 He Co founded the firm before becoming the CEO of 0:05:31.560 --> 0:05:35.360 group nine media, which sold to Fox media. Joining me out, 0:05:35.480 --> 0:05:38.719 Eric Hippo, managing partner at Lara Hippo. Eric, great to 0:05:38.720 --> 0:05:42.080 have you back with us. Curious with the fundraising environment 0:05:42.200 --> 0:05:46.440 was like for these two funds, given a very challenging 0:05:46.480 --> 0:05:49.919 macroeconomic backdrop. Yes, hi, emily, good to be with you. 0:05:50.720 --> 0:05:53.480 The majority of these new funds were in fact ways 0:05:53.600 --> 0:05:57.000 last year. Uh and uh, and you know we have 0:05:57.520 --> 0:06:01.000 this is our twelfth year. Were these our fund aid 0:06:01.680 --> 0:06:05.440 and select force or early stage on late stage number eight, 0:06:06.160 --> 0:06:09.599 late stage number four. So we we we've done quite 0:06:09.640 --> 0:06:13.480 well and we have very loyal lps. We've we've been 0:06:13.520 --> 0:06:15.440 able to capture some new LPS as well. So it 0:06:15.520 --> 0:06:20.599 hasn't been really it's it's it hasn't been exceptionally hard. Um, 0:06:20.640 --> 0:06:23.400 I would imagine that today for new funds it would 0:06:23.400 --> 0:06:28.000 be pretty difficult. So how is the changing macro environment 0:06:28.320 --> 0:06:32.400 changing your strategy and where you're going to place your bats? 0:06:32.520 --> 0:06:34.960 So we, we have are quite well known for our 0:06:35.000 --> 0:06:38.760 consumer companies, companies like what we parker and Casper and 0:06:38.839 --> 0:06:42.640 all birds and glassier and many others, Um and, but 0:06:42.920 --> 0:06:45.840 in the in the more recent years, we've also been very, 0:06:45.920 --> 0:06:49.920 very focused on B two B, on enterprise software. We're 0:06:50.000 --> 0:06:52.880 less known for that, but we do over half of 0:06:52.880 --> 0:06:56.080 our investments in those areas and those are at the 0:06:56.080 --> 0:06:59.159 moment very exciting and we're looking forward to kind of 0:06:59.160 --> 0:07:02.360 balancing our humor business with our with our B Two 0:07:02.360 --> 0:07:06.440 B business. Now venture capitalists are announcing big funds left 0:07:06.480 --> 0:07:08.520 and right, but it seems like there's not a lot 0:07:08.520 --> 0:07:10.480 of places to put this money. I mean, is there 0:07:10.480 --> 0:07:14.480 just a lot of dry powder sitting on the sidelines. That's, 0:07:14.520 --> 0:07:19.600 you know, piling up. You know, while valuations come down 0:07:20.200 --> 0:07:23.760 and the economy resets, there is, there is a record 0:07:23.800 --> 0:07:27.160 amount of dry powder. As you say. What we're finding 0:07:27.240 --> 0:07:30.600 is that funding at the seed and Prese level, which 0:07:30.600 --> 0:07:34.320 is our specialty, uh, you know, continues and the normal, 0:07:34.640 --> 0:07:38.840 normal pace series a as well, is Um. You know, 0:07:39.480 --> 0:07:41.960 our companies are getting funded at the series there, but 0:07:42.000 --> 0:07:45.320 where things are much slower is in the later stages, 0:07:45.640 --> 0:07:48.040 series B and beyond, and that's going to do with 0:07:48.080 --> 0:07:51.520 the fact that late stage investors, Um, are really not 0:07:51.640 --> 0:07:55.800 sure about how the price, how the value companies. But 0:07:56.120 --> 0:07:58.440 as soon as the market kind of settles in the 0:07:58.520 --> 0:08:01.480 later stage, they be plenty of money to be put 0:08:01.480 --> 0:08:04.200 to work. So are you waiting for valuations to come down? 0:08:04.360 --> 0:08:08.400 Is that sort of what I hear you're saying? In 0:08:08.400 --> 0:08:12.800 in where we invest at the seed valuations have moderated. 0:08:12.880 --> 0:08:17.080 They haven't yet come down to uh, kind of three levels. 0:08:17.840 --> 0:08:20.880 But you know, we we take the very long view, uh, 0:08:20.960 --> 0:08:24.520 and so we invest in a good year and a 0:08:24.560 --> 0:08:27.120 bad year. You know our companies are going to start 0:08:27.120 --> 0:08:31.480 maturing years down the road. Um. So we um, you know, 0:08:31.520 --> 0:08:35.160 we we we find valuations to be more attractive to them, 0:08:35.240 --> 0:08:38.280 for sure. But more importantly, we have more time to 0:08:38.360 --> 0:08:41.480 do our work. There isn't a frenzy than existed last 0:08:41.520 --> 0:08:43.600 year where people wanted to close their rounds in a 0:08:43.640 --> 0:08:46.760 matter of days. Now we're back at being able to, 0:08:47.320 --> 0:08:49.400 you know, close around in a matter of weeks, giving 0:08:49.440 --> 0:08:51.600 US plenty of time to do our work and our 0:08:51.679 --> 0:08:55.360 due diligence. So what's your take on you know, I 0:08:55.360 --> 0:08:58.439 mean another reading from the Fed? Great like seemed to 0:08:58.480 --> 0:09:03.160 be continuing. How is that impacting your outlook? The biggest 0:09:03.160 --> 0:09:07.920 impact for, you know, venture capital at the moment it 0:09:07.960 --> 0:09:09.640 has to do with the fact that that the I 0:09:09.760 --> 0:09:13.040 P O market is is dead in the water Um, 0:09:13.280 --> 0:09:16.559 and so companies that wanted to go public this year 0:09:16.679 --> 0:09:20.280 are postponing that particular event, and that always has an 0:09:20.320 --> 0:09:23.280 effect on the M and a market as well. If 0:09:23.360 --> 0:09:25.480 if the I P O market is slow, the M 0:09:25.480 --> 0:09:28.080 and a market is slow as well. So, uh, you know, 0:09:28.400 --> 0:09:32.839 last year we saw a record amount of liquidity. We 0:09:32.920 --> 0:09:38.160 returned an absolute record of uh back to our limited partners. 0:09:38.520 --> 0:09:41.319 This year is much slower, but again, we take the 0:09:41.400 --> 0:09:43.880 long view. You'll have a down year, you'll have an 0:09:43.960 --> 0:09:47.440 up here it over a period of time. Uh, it 0:09:47.480 --> 0:09:51.839 doesn't really matter. Hi, uh, Eric Capo of Laro Harpo. 0:09:52.120 --> 0:09:54.720 Always going to have you here, Eric. Thank you all right. 0:09:54.760 --> 0:09:57.760 Coming up, crack and see you. Jesse Powell stepping down. 0:09:57.840 --> 0:10:00.679 What does it mean for the future of the CRYPTO exchange? 0:10:00.800 --> 0:10:04.839 Our conversation with him coming up next. This is Bloomberg. 0:10:27.400 --> 0:10:30.000 All right, quick check of the markets again. I want 0:10:30.000 --> 0:10:32.720 to bring back our Ed Ludlow, who's been watching a 0:10:32.760 --> 0:10:35.920 few more things. And what else is catching your iron? Yeah, 0:10:35.960 --> 0:10:37.400 I mean there was just so much that happened on 0:10:37.440 --> 0:10:40.280 Wednesday afternoon. As a reminder, the Fed did raise rates 0:10:40.280 --> 0:10:43.040 by seventy five basis points, and the Hawk isher prize 0:10:43.080 --> 0:10:45.880 was where rates go from here. Officials saw four point 0:10:45.920 --> 0:10:48.839 three percent by the end of four point six PC, 0:10:49.120 --> 0:10:53.839 terminal rate going into three or in. And behind me 0:10:53.920 --> 0:10:56.400 US some kind of the corners of the technology market. 0:10:56.480 --> 0:10:58.680 Right was the mega caps and some of the U 0:10:58.760 --> 0:11:01.440 S shares of Chinese list of tech companies that fell 0:11:01.520 --> 0:11:03.960 the most all told. Look at the NYC Fan Class Index, 0:11:04.000 --> 0:11:06.920 down two point six percent. And then we talked about 0:11:06.920 --> 0:11:09.080 why do we keep going on about interest rates and 0:11:09.160 --> 0:11:11.480 why every day do I stand in front of you 0:11:11.559 --> 0:11:14.439 and say rates are projected to do this, because higher 0:11:14.520 --> 0:11:17.160 rates discount the present value of future profits. For a 0:11:17.160 --> 0:11:20.800 lot of these tech companies, including the mean stocks, including 0:11:20.840 --> 0:11:24.440 the nonprofitable sector corners of the tech market, they haven't 0:11:24.480 --> 0:11:27.520 got any profit anyway. They're trading at very high multiple. 0:11:27.640 --> 0:11:29.240 So that was an area of the market that we 0:11:29.320 --> 0:11:31.880 look to. A really interesting part of the market as well. 0:11:31.920 --> 0:11:36.520 Wednesday was aerospace and defense. You heard President Putin of 0:11:36.600 --> 0:11:41.360 Russia talking about mobilizing troops and talk about an excitation 0:11:41.720 --> 0:11:44.920 of certain parts of Ukraine. Of course that war ongoing. 0:11:45.440 --> 0:11:48.680 At first defensive in aerospace stocks have been much, much higher, 0:11:48.679 --> 0:11:51.560 but actually post fed paired their gains to be to 0:11:51.640 --> 0:11:54.520 a decline of nine percent. Some breaking headlines crossing the 0:11:54.520 --> 0:11:57.920 Bloomberg terminal in the last few minutes from salesforce, one 0:11:57.960 --> 0:12:00.280 of the companies you and I do discuss more often 0:12:00.400 --> 0:12:03.040 m which is up now three in after hours, the 0:12:03.040 --> 0:12:07.560 company saying it has a four year revenue target of 0:12:07.679 --> 0:12:10.840 fifty billion dollars. Why does that matter? Well, to give 0:12:10.880 --> 0:12:14.480 you some context, in four year twenty one salesforce had 0:12:14.559 --> 0:12:18.040 revenue of around thirty five billion dollars. So it's part 0:12:18.040 --> 0:12:20.840 of their invested day presentation in the Bay area in 0:12:20.840 --> 0:12:23.840 San Francisco and Wednesday they've been telling investors kind of 0:12:23.880 --> 0:12:27.560 what their longer term expectations are, and that expectation is 0:12:27.559 --> 0:12:30.640 to boost revenue, revenue on a four year basis in 0:12:30.679 --> 0:12:33.760 a very meaningful way, to have fifty billion dollars of 0:12:33.840 --> 0:12:36.480 sales by four year, twenty six, and I know over 0:12:36.480 --> 0:12:38.240 the coming days and weeks we'll keep a close eye 0:12:38.280 --> 0:12:42.360 on that stock end absolutely. I'm actually interviewing salesforce coast 0:12:42.360 --> 0:12:45.959 at your Mark Benny off tomorrow at Dream Force. We're 0:12:45.960 --> 0:12:48.640 going to get his thoughts on the market moves and 0:12:48.679 --> 0:12:50.959 his broader outlook. I'm also curious what he thinks about 0:12:51.280 --> 0:12:54.720 the big FIGMA deal, Adoba buying Figma for twenty billion 0:12:54.760 --> 0:12:57.200 dollars in the middle of a downturn, and it'll be 0:12:57.280 --> 0:13:00.520 interesting to get his thoughts, given salesforce butts black for 0:13:01.040 --> 0:13:03.480 twenty seven billion dollars, which I believe was the biggest 0:13:03.480 --> 0:13:08.760 tech deal ever at the time. Um and and and 0:13:08.760 --> 0:13:12.040 and certainly will be interesting to get his thoughts as 0:13:12.160 --> 0:13:15.440 the Fed continues to make these decisions. Yeah, well, he's 0:13:15.440 --> 0:13:17.400 not a guy that's short of opinions. Mzy I mean, 0:13:17.480 --> 0:13:19.560 let's be honest, he's got an opinion and everything, but 0:13:19.679 --> 0:13:22.080 he's no stranger to M and a either. Not just 0:13:22.240 --> 0:13:23.920 that deal that you mentioned, but I think that's a 0:13:24.000 --> 0:13:26.760 mule soft right. And actually salesforce gone a little bit 0:13:26.840 --> 0:13:28.760 quiet in recent weeks and months. You and I used 0:13:28.800 --> 0:13:31.600 to cover them quite a lot pre pandemic period and 0:13:31.720 --> 0:13:34.840 entering the during the pandemic period, because this is obviously 0:13:34.880 --> 0:13:37.200 a company that has decent sales, but also it's a 0:13:37.240 --> 0:13:39.880 really high margin business and at the same time, Benioff 0:13:39.960 --> 0:13:42.120 is a man of many passion projects and I'm sure 0:13:42.120 --> 0:13:44.959 you'll discuss those of him too. Absolutely it's going to 0:13:45.000 --> 0:13:47.319 be a great one coming up on Thursday show Ed. 0:13:47.480 --> 0:13:51.400 Thank you. Meantime, as climate week is in full swing 0:13:51.440 --> 0:13:54.800 in New York, California Governor Gavin newsom spoke about the 0:13:54.800 --> 0:13:59.480 state's climate challenges and how to avoid blackouts like those 0:13:59.559 --> 0:14:01.960 we've seen it in past years here in the state. 0:14:02.000 --> 0:14:04.680 He spoke with my colleague David Weston from the sidelines 0:14:04.800 --> 0:14:08.960 of United Nations climate action, race to zero and the 0:14:09.000 --> 0:14:12.439 resilience form supported by Bloomberg Phil anthropies. Take a listen. 0:14:13.600 --> 0:14:17.839 We were distress tests in the most extreme had no blackouts. 0:14:18.040 --> 0:14:21.320 We were challenged, but we kept our wits and we're 0:14:21.400 --> 0:14:25.360 keeping our agenda and we're maintaining our policy principles. That, 0:14:25.480 --> 0:14:28.200 I think, will allow us more resilience in the future. 0:14:28.240 --> 0:14:31.000 So No, I don't think you have to sacrifice one 0:14:31.000 --> 0:14:34.120 for the other. I would argue not. Transitioning is the 0:14:34.160 --> 0:14:36.760 bigger risk in the bigger soccer. Transition is an important 0:14:36.760 --> 0:14:39.320 word in that sentence. It's not all of one or 0:14:39.320 --> 0:14:41.480 all the others, because a lot of experts sake. Yes, 0:14:41.520 --> 0:14:43.840 certainly we have to get to renewables, but you can't 0:14:43.840 --> 0:14:45.800 just give up, for example, on natural gas that that 0:14:45.960 --> 0:14:48.000 is actually part of the path for the transition. You 0:14:48.000 --> 0:14:49.760 do you agree with that? Under percentage bact we were 0:14:49.760 --> 0:14:51.760 able to keep the lights on because we kept a 0:14:51.800 --> 0:14:54.000 lot of our ones through cooling plants online. We were 0:14:54.000 --> 0:14:56.880 able to do backup generators. We are not naive about 0:14:56.880 --> 0:15:00.720 the situational challenges, but that doesn't mean we' and accelerate. 0:15:00.760 --> 0:15:02.920 I'll give you an example. In areas like battery stories, 0:15:03.120 --> 0:15:08.000 we have the largest installed battery projects on planet Earth. 0:15:08.520 --> 0:15:11.200 It was two fifty megawats. Two and a half years ago, 0:15:11.640 --> 0:15:14.640 close to four thousand megawats. Say It's our largest power 0:15:14.680 --> 0:15:17.120 plant today. That's just in two and a half years. 0:15:17.160 --> 0:15:20.160 Look at what we can do in five, ten, fifteen years. 0:15:20.200 --> 0:15:24.680 So I think people are naively assuming we're not capable 0:15:24.720 --> 0:15:27.240 of doing so much more with the Innovation and entrepreneur 0:15:27.280 --> 0:15:29.520 spirit that finds the best of this country. Enormous growth 0:15:29.600 --> 0:15:32.120 in your battery capacity. You said where you could go. 0:15:32.240 --> 0:15:34.040 Where do you need to go in order to get 0:15:34.080 --> 0:15:36.720 to zero emissions? I mean, look, we have very ambitious 0:15:36.720 --> 0:15:40.240 goals to carbon neutrality, not in at zero. Carbon neutrality 0:15:40.320 --> 0:15:44.560 is five. We've established interim goals of clean energy on 0:15:44.560 --> 0:15:47.200 our electricity grid by five and of course we have 0:15:47.240 --> 0:15:50.160 the ZV man date, which is the most aggressive of 0:15:50.200 --> 0:15:52.400 any jurisdiction, certainly in the United States one of the 0:15:52.440 --> 0:15:55.720 few in the world. So we have to do multiple 0:15:55.720 --> 0:15:58.720 it is probably six gigawatts a year uh to move 0:15:58.800 --> 0:16:00.720 things along. And here's how we do it. It's not 0:16:00.800 --> 0:16:04.680 just putting unprecedented money to back up these technologies and 0:16:04.680 --> 0:16:06.880 tax and centers, which we have. That the four billion 0:16:07.120 --> 0:16:11.600 dollars of new incremental investments, setting the most aggressive policies 0:16:11.640 --> 0:16:14.160 to get the private sector to invest and fill the gaps, 0:16:14.200 --> 0:16:17.360 but also the biggest issue that we face. It's time 0:16:17.880 --> 0:16:21.200 two project deliver, not just from a supply chain perspective, 0:16:21.440 --> 0:16:25.880 but permitting perspective. The NIMBIISM huge issue, and so we 0:16:26.120 --> 0:16:30.600 did something profound this year. We have completely knocked out 0:16:30.640 --> 0:16:33.760 all of those barriers and we put in rigid timelines 0:16:34.200 --> 0:16:37.080 to get projects permitted and go through a judicial process 0:16:37.080 --> 0:16:39.480 at their challenge, and that, we think, is a game changer. 0:16:39.960 --> 0:16:42.160 Anything I read about this says carbon capture is critical, 0:16:42.240 --> 0:16:43.880 and I know that's an important part of your strategy. 0:16:44.320 --> 0:16:46.400 At the same time, how we're really taking carbon capture 0:16:46.720 --> 0:16:49.640 to scale, to the sale? You needed to be particularly 0:16:49.640 --> 0:16:51.840 out of the air. Not yet. We have direct our 0:16:51.920 --> 0:16:54.160 capture a number of companies in California. In fact, they're 0:16:54.160 --> 0:16:57.560 demonstrating that in Wyoming as we speak. We worked with 0:16:57.640 --> 0:16:59.920 the oil industry. You never believe that, since I just 0:17:00.040 --> 0:17:04.240 to referendum against our efforts on our setbacks, health and 0:17:04.240 --> 0:17:07.760 safety setbacks. But now carbon capture, sequestration. We want to 0:17:07.760 --> 0:17:10.560 invest in that and, by the way, that's an important 0:17:10.560 --> 0:17:13.000 point you're making. We were able to find some balance 0:17:13.040 --> 0:17:15.800 in that space a few years ago our mental justice community. 0:17:15.840 --> 0:17:18.000 Others were like no, we don't want to have that conversation. 0:17:18.320 --> 0:17:21.439 Green hydrogen didn't even want that conversation. So we've been 0:17:21.440 --> 0:17:24.679 accelerating on all fronts. Recognize that we need a d 0:17:24.880 --> 0:17:27.639 risk including, by the way, extending the life of our 0:17:27.720 --> 0:17:30.840 nuclear plant for five years in order to stress test 0:17:30.920 --> 0:17:34.360 this grid as we transition, and D risk and look 0:17:34.359 --> 0:17:38.880 at the issue cost, which is profoundly important. California Governor 0:17:38.920 --> 0:17:42.879 Gavin Newsom there with Bloomberg David Weston some other stories 0:17:42.920 --> 0:17:46.480 we're watching, India is wooing chip makers to the country. 0:17:46.560 --> 0:17:49.720 Under a new ten billion dollar plan, the government will 0:17:49.760 --> 0:17:54.600 increase financial incentives for manufacturers upwards of a project's total cost. 0:17:55.080 --> 0:17:59.879 India is the world's second biggest fobal phonemaker, and one 0:18:00.119 --> 0:18:02.280 music is tapping a youtube veteran to head the world's 0:18:02.320 --> 0:18:06.199 third largest record label. Robert Kinkel will become co CEO 0:18:06.320 --> 0:18:10.560 in January and soul CEO in February. Kinkel has spent 0:18:10.600 --> 0:18:12.760 the bulk of his career at Youtube, where he led 0:18:12.800 --> 0:18:16.959 creative and commercial partnerships and helped launch a subscription service. 0:18:17.240 --> 0:18:19.199 He was also part of the team and Netflix that 0:18:19.320 --> 0:18:24.480 introduced original streaming programming and beyond. Meat has suspended Chief 0:18:24.560 --> 0:18:28.199 Operating Officer Doug Ramsey. He was arrested on charges that 0:18:28.240 --> 0:18:30.879 he bit a man's nose during a fight after a 0:18:30.880 --> 0:18:34.600 college football game in Arkansas. This is another blow for 0:18:34.640 --> 0:18:37.840 the plant based Protein Company, which cut its revenue forecast 0:18:38.080 --> 0:18:50.280 last month. Welcome back to Bloomberg Technology and Emily Chang 0:18:50.280 --> 0:18:53.600 in San Francisco. When it comes to the digital revolution, 0:18:53.720 --> 0:18:58.000 Latin America is catching up fast. The venture capital firm Atlantic, 0:18:58.240 --> 0:19:02.000 which backs pre scale in American companies, just published a 0:19:02.000 --> 0:19:04.879 report showing how the digital economy in that part of 0:19:04.920 --> 0:19:07.920 the world has skyrocketed as a result of the pandemic. 0:19:08.000 --> 0:19:10.920 Let's dive deeper into all of this with Atlantico Venture 0:19:10.960 --> 0:19:14.080 Partner Hugo Bara. He was also vice president of product 0:19:14.119 --> 0:19:17.600 for Android at Google, worked at chaw me at facebook 0:19:17.680 --> 0:19:21.000 as well. Hugo, you've worn so many hats Um, so 0:19:21.040 --> 0:19:24.240 your perspective is really valuable. What are some key highlights 0:19:24.520 --> 0:19:27.280 that you learned from this report about the Latin American 0:19:27.280 --> 0:19:32.320 Digital Economy? I'm curious what surprised you, hiamily, nice to 0:19:32.320 --> 0:19:36.400 see you. There's definitely a lot to unpack in this 0:19:37.400 --> 0:19:42.800 Um report that we just published yesterday. Probably the key story, 0:19:42.880 --> 0:19:47.760 the big headline, which sort of underlying investing, is that 0:19:47.800 --> 0:19:53.560 the pandemic tech boom has been sticky in Latin America. 0:19:53.640 --> 0:19:56.000 This is a huge deal because in the US we 0:19:56.119 --> 0:20:00.160 saw a bit of a reversal of the historical trend Um, 0:20:00.160 --> 0:20:02.560 you know, or back to the historical trend in in tech, 0:20:03.119 --> 0:20:05.960 or as in Latin American particularly Brazil, we've we seem 0:20:06.040 --> 0:20:08.920 to have sort of jumped ahead of Brazil. E commerce, 0:20:08.960 --> 0:20:12.400 for instance, is three years sort of ahead of the plan. 0:20:12.800 --> 0:20:14.959 You know that that sort of growth curve has shifted 0:20:15.080 --> 0:20:17.359 up three years Um and that obviously has driven a 0:20:17.480 --> 0:20:20.439 tremendous amount of activity and acceleration in tech there. And 0:20:20.440 --> 0:20:26.280 there are some some pretty interesting and borderline absurdum stats 0:20:26.680 --> 0:20:29.480 that I think are worth talking about. So one of them, 0:20:29.600 --> 0:20:31.959 this is sort of part of the the e commerce branch, 0:20:32.000 --> 0:20:35.600 if you will, is is grocery delivery. So groceries delivery 0:20:35.640 --> 0:20:40.040 in Um in Brazil, as sort of measured by I food, 0:20:40.040 --> 0:20:45.040 which is the largest player locally, saw a six times jump, 0:20:45.200 --> 0:20:47.720 like right at the beginning of the pandemic, uh, and 0:20:47.760 --> 0:20:51.119 then since that it's grown an extra ten times. Right, 0:20:51.160 --> 0:20:55.720 so sixty times jump between the beginning of the pandemic 0:20:55.760 --> 0:20:58.639 and now, and that's basically a sustained sort of new level. 0:20:59.560 --> 0:21:04.520 Another big one is telemedicine, which is obviously pretty understandable, 0:21:05.119 --> 0:21:08.159 but virtual appointments in Brazil is measured by one of 0:21:08.200 --> 0:21:11.480 the League players, a company called connects, the salvaging uh 0:21:12.320 --> 0:21:15.200 ten next in the first year of the pandemic and 0:21:15.240 --> 0:21:18.240 then doubled since that. Right, so it's like a twenty 0:21:18.400 --> 0:21:22.360 x jump from from the beginning of times, and these 0:21:22.359 --> 0:21:27.480 are sustained new levels, which is really exciting interesting. You know, 0:21:27.520 --> 0:21:32.040 I'm curious how this is influencing where you and Atlantico 0:21:32.119 --> 0:21:36.280 are placing your bets, because you're learning about these new trends. 0:21:36.320 --> 0:21:39.440 At the same time we're going into a massive macroeconomic 0:21:39.560 --> 0:21:45.440 downturn and I wonder how that's uniquely impacting Latin America. Yeah, 0:21:45.920 --> 0:21:49.800 so I think a few things are shifting and I 0:21:49.840 --> 0:21:54.200 would probably look at the venture investing scene Um specifically. 0:21:54.320 --> 0:21:57.560 So you know without a doubt investment has gone down 0:21:57.960 --> 0:22:02.920 as compared to what happened in and UH in Um 0:22:02.960 --> 0:22:07.040 as a result of sort of this new economic reality Um, 0:22:07.119 --> 0:22:11.400 so investments slowed down. In Latin America in particular, we've 0:22:11.440 --> 0:22:15.520 noticed that foreign investors. They remained active in the region, 0:22:15.520 --> 0:22:18.280 but they're pulling back a little. But what's happened is 0:22:18.280 --> 0:22:21.119 that the local funds are sort of making up the difference, right, 0:22:21.160 --> 0:22:25.600 and this is directly in response to this sort of 0:22:26.320 --> 0:22:31.080 lasting tech boom, post pandemic. It's sort of the excitement remains, 0:22:31.119 --> 0:22:35.960 if you will. So valuations have gone down, Um, but investments, 0:22:36.000 --> 0:22:39.040 particularly in an earlier stage companies, uh, you know, continues. 0:22:39.600 --> 0:22:42.120 There's a few other unique things happening that I think 0:22:42.119 --> 0:22:44.320 are going to continue to do the fuel investment in 0:22:44.320 --> 0:22:47.159 a big way. You know, Fintech and left Ham is 0:22:47.240 --> 0:22:50.640 extremely well developed, I would argue, in some ways much 0:22:50.680 --> 0:22:53.600 more than in North America. Uh. There's a couple of 0:22:53.600 --> 0:22:57.720 examples worth mentioning, you know. First off, we saw, you know, 0:22:57.760 --> 0:23:01.200 one of the most successful Fintech come needs, the largest 0:23:01.320 --> 0:23:05.000 neo bank in the world, new bank, go public recently. Uh. That's, 0:23:05.080 --> 0:23:08.639 you know, a world class story. And there's another stat 0:23:08.680 --> 0:23:11.639 that I think also relates to to the investment climate, 0:23:11.680 --> 0:23:15.360 which is what's happening with mobile payments in Brazil. Uh, 0:23:15.400 --> 0:23:18.719 and and it's IT'S A it's a skyrocketing example. So 0:23:18.760 --> 0:23:22.679 the central bank launched, launched these sort of new instant 0:23:22.720 --> 0:23:26.160 payment rails a couple of years ago. It's called picks, uh, 0:23:26.160 --> 0:23:29.000 and picks is in some ways very similar to U 0:23:29.080 --> 0:23:32.280