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Speaker 1: From Mahart where Innovation, money and power Collie in Silicon

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Speaker 1: Vallet Nbon.

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Speaker 2: This is Bloomberg Technology with Caroline Hyde and Ed Ludlow.

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Speaker 3: I'm Caroline Hyde at Bloomberg's World head quarters in New

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Speaker 3: York and Ourmed Ludlow in San Francisco.

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Speaker 4: This is Bloomberg Technology.

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Speaker 5: Coming up from private markets to public.

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Speaker 3: We have got you covered data Bricks raising funds at

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Speaker 3: are forty three billion dollar valuation, while instacart and of

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Speaker 3: course it's filed for its IPO details ahead.

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Speaker 6: Class Apple revamping the iPad pro for the first time

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Speaker 6: in half a decade. We'll have more on the iPhone

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Speaker 6: makers plans to spark growth for the tablet market.

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Speaker 3: And SpaceX's Dragons successfully docks with the International Space Station,

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Speaker 3: marking its seventh human spaceflight mission to the ISS.

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Speaker 5: But what's next EEno Musk's.

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Speaker 3: Company will discuss, but first as checking on these public

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Speaker 3: markets and they're here. And then now the volumes are

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Speaker 3: still thin. It's the end of August. We're down about

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Speaker 3: twenty five percent, but remember how far we've actually fallen

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Speaker 3: the Mange benchmarks in fact, and that's that on course

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Speaker 3: for its worst month since well the beginning of the year,

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Speaker 3: we're down about four percent. Today we're just ebbed a

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Speaker 3: little bit higher, up about four tens percent. But as

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Speaker 3: I say, low volumes at the moment, the two year

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Speaker 3: yields stabilizing. We're just down by about one basis point,

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Speaker 3: but still above that five percentage point level. How fast

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Speaker 3: we have run up in terms of those borrowing costs.

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Speaker 5: Now, of course, all.

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Speaker 3: Eyes and what China is trying to do to stoke

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Speaker 3: its economy at the moment, and it managed to fizzle

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Speaker 3: out a little bit in terms of Chinese trading. They

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Speaker 3: put some emphasis in trying to support the economy, and

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Speaker 3: we are seeing that pull over a little bit into

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Speaker 3: some of those Chinese names that are traded here in

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Speaker 3: the United States. But again it has fallen off hard

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Speaker 3: over the last few training days. Today we stabilize and

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Speaker 3: the now's that golden dragon. I'm seeing up more than

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Speaker 3: two percentage points some of those internet names traded here.

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Speaker 3: Let's move on, look what's happening in the world of crypto,

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Speaker 3: because remember that took a tumble in the last couple

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Speaker 3: of weeks, and I want to shine a light in

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Speaker 3: the fact that we are actually stayed at a new level.

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Speaker 3: It feels like ED and we've come down a lem

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Speaker 3: percent from that thirty twenty nine thousand level.

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Speaker 5: We're nowvo just in a range bound.

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Speaker 3: Twenty six thousand seems to be your number at the

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Speaker 3: moment as we have all eyes on the macro policy perspective.

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Speaker 5: But go into the micro for a moment.

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Speaker 6: Yeah, no crazy moves for specific names. But there are

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Speaker 6: tech stories from all over the world. So x Pong

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Speaker 6: Chinese EV maker, nice bit of m and A buying

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Speaker 6: DD's smart auto business that seems to be supporting the

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Speaker 6: US listed shares or ADRs for that Chinese EV name.

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Speaker 6: Apple's basically flat now. But later in the program, Mark

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Speaker 6: Gumman's going to bring us his latest power on. He's

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Speaker 6: giving us reporting about the next gen iPad pro coming

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Speaker 6: twenty twenty four, some new specs that we're looking out for.

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Speaker 6: Two other names moving related largely to analyst calls. But

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Speaker 6: I want to bring you a new name we haven't

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Speaker 6: discussed on the show, which is Nerdy ticker NRD. Why

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Speaker 6: why am I picking out Nerdy? You know why? Because

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Speaker 6: I'm nerdy. But it's an education online platform. Raymond James

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Speaker 6: reinitiated with an outperformed lots of growth, it thinks because

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Speaker 6: it's moving to a subscription model powered by guess what

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Speaker 6: AI in Nvidia has been resumed by another or initiated

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Speaker 6: sorry with another buyer rating at sealand Securities. The story

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Speaker 6: last week, remember was that had finally shaken off it's

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Speaker 6: our cell rating. We continued to see sales side names

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Speaker 6: bullish on Nvidia as the AI leader in semis. Those

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Speaker 6: are the public sort of stories and movers that we're

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Speaker 6: looking at in.

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Speaker 4: The private space.

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Speaker 6: Data Bricks, the closely held software maker widely viewed as

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Speaker 6: a candidate to go public, is in discussions with tiro

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Speaker 6: Price about a new funding round that would value the

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Speaker 6: company at forty three billion dollars. That according to Bloomberg sources.

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Speaker 6: Bloomberg's Katie Roof with us she has that story, Katie,

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Speaker 6: What other details do we have?

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Speaker 4: Sure?

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Speaker 7: Yeah, So, as we reported that tiro Prices and talks

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Speaker 7: to potentially lead an investment that would be an up

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Speaker 7: round a forty three billion. We don't see a lot

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Speaker 7: of those these days. It was last valued around thirty

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Speaker 7: eight billion in twenty twenty one. You know, there aren't

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Speaker 7: a lot of free IPO companies that can even raise

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Speaker 7: at all, let alone at an increase valuation. But you

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Speaker 7: know a lot of people are drawing comparisons to Snowflake,

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Speaker 7: which is almost a fifty billion dollar company. Data Bricks

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Speaker 7: also has been getting more involved in artificial intelligence, which

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Speaker 7: is obviously a hot space. They recently acquired Mosaic and

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Speaker 7: artificial intelligence business that targets enterprises for over a billion dollars.

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Speaker 7: And so what we understand is they've had a lot

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Speaker 7: of inbound interest with investors trying to invest, trying to

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Speaker 7: get in what could be the last round before they

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Speaker 7: go public, and yeah, it's looking like it could fall

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Speaker 7: at forty three billion.

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Speaker 6: Well let's take into that a bit deeper. This is

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Speaker 6: interesting timing because a lot of companies that are now

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Speaker 6: in the IPO discussion may have done a down round

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Speaker 6: in the last two years, but they're raising or they're

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Speaker 6: looking to do something at this interesting valuation pre IPO.

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Speaker 6: What do we know about Data bricks near term intentions

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Speaker 6: to go public?

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Speaker 7: So you know, usually I would say if a company

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Speaker 7: is raising money, they're not on the verge of IPO

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Speaker 7: because you don't want to dilute your ownership right ahead

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Speaker 7: of an IPO. So this to me is a signal

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Speaker 7: that they might be delaying their IPO further. And now

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Speaker 7: Data Bricks obviously is a company at scale. They have

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Speaker 7: the kind of revenue that's necessary to go public, but

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Speaker 7: they also don't have to go public because they're able

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Speaker 7: to keep you know, raising capital in the private markets,

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Speaker 7: and so they just haven't. They don't have that impression

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Speaker 7: that pressure just yet. But certainly they are a company

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Speaker 7: that we expect to go public at some point someday.

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Speaker 3: And of course we all wait with bated breath as

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Speaker 3: to the reopening of the IPO market. We've got Arm,

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Speaker 3: of course waiting. We've got the likes of instacar, where

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Speaker 3: we've got the details, the devil in the detail and

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Speaker 3: coming in their latest numbers in the finding of the

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Speaker 3: IPO on Friday.

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Speaker 5: What did we learn from that overall?

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Speaker 7: Katie Right, So we've got ARM, Instacart, Quavio, all of

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Speaker 7: them came out with IPO filings last week. It's going

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Speaker 7: to be busy for tech IPOs. Instacart was interesting, you know,

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Speaker 7: I had mentioned the other day on Bloomberg TV, I

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Speaker 7: was hearing that their financials were better than what people

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Speaker 7: were thinking, and it turns out they were profitable. They

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Speaker 7: had you know, revenue growth and managed to make money,

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Speaker 7: which is pretty rare for tech companies and newly public

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Speaker 7: tech companies, so that surprised the folks. But what we

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Speaker 7: learned is they're getting a strategic investment from Pepsi COO

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Speaker 7: of one hundred and seventy five million, so obviously that's

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Speaker 7: a voto confidence in the industry. But we also learned

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Speaker 7: that they've made a shift in their business model or

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Speaker 7: they've added.

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Speaker 5: New lines of business.

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Speaker 7: They've really been focusing on e commerce technology, software that

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Speaker 7: can help with logistics and other analytics, and also focused

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Speaker 7: on advertisers, so they're really expanding beyond just giving you groceries,

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Speaker 7: which they absolutely still do.

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Speaker 3: Pgcimo already coming into bed when it comes to leadership

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Speaker 3: that company.

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Speaker 5: We thank you so much.

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Speaker 3: kJ if they're really detailing some of the news we've

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Speaker 3: got Friday and then throughout the weekend, let's carry it

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Speaker 3: on a little bit in terms of what the IPO

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Speaker 3: market's gearing itself for. Rgi Goring when police to say,

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Speaker 3: joins us, she's been leading the IPO practice over earned

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Speaker 3: some young Americas. You've got twenty years experience and really

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Speaker 3: guiding companies at this pivotal moment in their direction or travel.

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Speaker 3: I know we won't dwell on individual names and individual

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Speaker 3: business models, but ultimately, when we're seeing a company at

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Speaker 3: instacrat that's had to put off going public, had to

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Speaker 3: take cuts to its market valuation, how important is this moment?

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Speaker 8: I think it's a really important moment for the broader

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Speaker 8: IPO market and particularly the tech IPO market. It's certainly

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Speaker 8: a predictable way of having a market reopening occur with

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Speaker 8: the anticipated deals that everyone is expecting over the coming weeks.

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Speaker 8: And you know, there's three common theme themes that these

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Speaker 8: companies are sharing that are coming to market right now.

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Speaker 8: One and that you are we're just speaking of this

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Speaker 8: profitability scale and then name brand recognition. These are all

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Speaker 8: factors that investors are finding important in today's environment and

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Speaker 8: placing a premium on.

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Speaker 4: Rachel.

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Speaker 6: Good morning to you from San Francisco. Look from a

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Speaker 6: new cycle perspective, a lot seems to have happened since

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Speaker 6: ARM made its move. If ARM makes the jump and lists,

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Speaker 6: do you think mechanically lots of listings will follow in

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Speaker 6: quick succession. It's kind of like a game of brinkmanship.

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Speaker 6: Who can jump first and see if the others will follow.

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Speaker 8: I don't know that it's one company that's going to

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Speaker 8: make a massive reopening, but it's certainly a start that

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Speaker 8: we need to have occur. But like I said, what

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Speaker 8: investors are really paying close attention to right now and

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Speaker 8: are rewarding our companies that are profitable or if not

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Speaker 8: yet profitable, a very clear path to profitability. So we're

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Speaker 8: not in that growth at all cost environment we were,

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Speaker 8: you know, just eighteen twenty four months ago. So it's

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Speaker 8: those companies that are going to really lead the way

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Speaker 8: in paving the way for the next entrance of IPO aspirants.

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Speaker 6: You know, Caroline, there are two sides of the table

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Speaker 6: in any transaction, and you and I know quite a

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Speaker 6: few venture capitalysts that really want this to happen, really

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Speaker 6: want this window to open.

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Speaker 5: Yeah, boy, they've been waiting for these exits. It can't

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Speaker 5: all be about M and A.

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Speaker 3: And there's not much of that either, And Rachel, to

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Speaker 3: that point, we're hearing that there is a lot of

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Speaker 3: stress in the bench capital environment and a lot of

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Speaker 3: them are raised huge funds that they're now juster really

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Speaker 3: trying to allocate in this environment as well. What did

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Speaker 3: you make of the fact that Data Brooks, a big

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Speaker 3: company in the private market, is also able to raise

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Speaker 3: in the private environment at the moment, where do you

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Speaker 3: think the real rubber meets the road for some of

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Speaker 3: these companies that can still fundraise, perhaps not going for

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Speaker 3: an IPO at this moment.

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Speaker 8: Yeah, well, I mean a few things that it tells me. One,

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Speaker 8: there is money to be deployed out there. But venture

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Speaker 8: capitalists investors broadly are being very discerning and where they

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Speaker 8: deploy that capital, so investing in companies that they feel

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Speaker 8: have a strong growth story. The merits behind the transaction

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Speaker 8: are being very much reviewed and and so forth. So

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Speaker 8: we're not seeing the volumes of investments that we have

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Speaker 8: seen before, but we're seeing very targeted interests, particularly around

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Speaker 8: key technologies such as AI and so forth. So there's

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Speaker 8: continues to be a strong investor focus.

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Speaker 6: In that investors focused on AI. How focused to you

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Speaker 6: on China and the impacts of the Chinese economy on confidence?

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Speaker 8: Well, the geopolitical tensions are continuing to be there still.

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Speaker 8: I can speak more to the US market, and the

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Speaker 8: US market is very dominant, continue to be you know,

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Speaker 8: the place that most companies want to to lift, and

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Speaker 8: companies are going to still continue to navigate the broader

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Speaker 8: geopolitical environment as well as many other factors that have

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Speaker 8: been impacting companies for the past twenty four months.

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Speaker 6: Rachel Garing, IPO leader Ernst and Young America's great insight

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Speaker 6: and finally bit of activity in this space. Good to

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Speaker 6: have you on the program. Fox con founder Terry Goer

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Speaker 6: has joined a crowded race to become Taiwan's next president,

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Speaker 6: in the process up ending an election that will have

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Speaker 6: wide ranging implications for security in the Western Pacific. The

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Speaker 6: tech billionaire denied Beijing could pressure him through his extensive

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Speaker 6: operations in the country, which include much of Apple's supply chain.

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Speaker 6: Speaking of Apple, the company working on a revamped iPad

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Speaker 6: pro for next year. It's first major overhaul of that

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Speaker 6: product in half a decade. From all, let's bring in

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Speaker 6: Bloomberg's Mark Gunman. You brought us those details in the

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Speaker 6: latest power on the keyp It for me is M

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Speaker 6: three chip.

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Speaker 4: Right. Every time they have a new generation of chip.

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Speaker 6: They have more CPU, cause more graphics, cause more memory.

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Speaker 6: But this is a major hardware overhaul.

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Speaker 9: This is a major hardware overhaul. I mean, as you know,

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Speaker 9: the iPad market, or more generally, the tablet market has

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Speaker 9: been in a bit of a funk lately. Right Shipments

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Speaker 9: for the overall tablet market were down thirty percent you

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Speaker 9: overy year in the second quarter. iPad revenue has been

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Speaker 9: down several quarters in a row. Actually, in the third quarter,

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Speaker 9: iPad revenue was its lowest since the cusps of the

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Speaker 9: pandemic in the beginning of twenty twenty. Apple is really

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Speaker 9: hoping that this new iPad Pro, which will come out

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Speaker 9: in the first half of next year twenty twenty four,

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Speaker 9: will sort of rejuvenate sales with a new design.

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Speaker 5: They're going to be moving.

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Speaker 9: This is the most significant thing, I think, to OLED

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Speaker 9: displays for the first time in an iPad. If you

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Speaker 9: remember the move from LCD to OLED in the iPhone

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Speaker 9: ten in twenty seventeen, it's a really significant change. So

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Speaker 9: now the iPhone of the iPad will use the same

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Speaker 9: screen technology. That's going to be a really robust upgrade

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Speaker 9: of that M three chip you mentioned, but also more

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Speaker 9: laptop like capabilities. There's going to be a new magic

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Speaker 9: keyboard attachment. They'll probably price it anywhere between three hundred

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Speaker 9: and four hundred dollars, But it'll essentially turn your iPad

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Speaker 9: into a laptop. This new version will likely have a

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Speaker 9: function row at the top like a Mac, and it'll

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Speaker 9: also have a.

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Speaker 4: Bigger track pad.

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Speaker 9: So this is clearly going to be aimed at iPad

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Speaker 9: power users, and I'm excited to get my hands on

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Speaker 9: one as well.

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Speaker 3: Mark, how many other people are excited to get their

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Speaker 3: hands on iPads at the moment because it has been

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Speaker 3: an area that just hasn't been firing on all cylinders

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Speaker 3: for Apple.

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Speaker 4: Yeah, that's a good question.

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Speaker 9: Well, anyone who's a big iPad pro user and has

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Speaker 9: had an iPad since twenty eighteen, that was the last

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Speaker 9: time they redesigned the iPad Pro, We're coming up on

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Speaker 9: five years, right, They introduced that in October of twenty eighteen,

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Speaker 9: So we'll get this big revamp within five years of

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Speaker 9: that window. So I think anyone on a twenty eighteen

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Speaker 9: model or even a twenty twenty model like myself could

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Speaker 9: be looking to upgrade to this next generation. So I

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Speaker 9: think they're going to get a pretty significant upgrade cycle,

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Speaker 9: at least for an iPad for this new range.

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Speaker 6: If you go on Apple's website and you click on

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Speaker 6: the iPad section and you put compare. There is just

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Speaker 6: infinite possibilities. Mark, there are so many iPads, they all

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Speaker 6: are quite similar and very different, and you write and

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Speaker 6: power on that. That's been a bit of a tricky

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Speaker 6: situation for Apple.

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Speaker 9: Well, when you're a customer, right, and you're not ingrained

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Speaker 9: in this ecosystem like I maybe or you twoe might be,

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Speaker 9: you really don't know what to buy. And a lot

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Speaker 9: of these iPads are very similar or they're very differentiated

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Speaker 9: by a couple hundred dollars, but with very minor tweaks

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Speaker 9: in between. So it's unclear if you should buy the

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Speaker 9: base ten generation iPad, should you buy the eleven inch

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Speaker 9: iPad Pro, should you buy the iPad air right, And

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Speaker 9: so I'm not sure that this new iPad pro will

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Speaker 9: doom much to fix that problem with perhaps too many iPads,

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Speaker 9: too many choices, and lack of clarity between the many options.

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Speaker 9: But what it will do is it'll help differentiate the

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Speaker 9: iPad Pro and make that more of a halo product

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Speaker 9: at the top of the line. It maybe push more

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Speaker 9: people to the high end, which of course would raise

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Speaker 9: overall Apple asps and overall Apple revenue.

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Speaker 3: At a time, while we question maybe some costs going

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Speaker 3: up for Apple as it has to rejigger mark it's

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Speaker 3: entire supply chain. You did a really great deep dive

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Speaker 3: Bloomberg did and its big take about how much this

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Speaker 3: is really changing the environment for making this equipment across

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Speaker 3: the whole evasion, not just China.

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Speaker 4: Yeah.

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Speaker 9: The interesting thing about what we've discovered based on the

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Speaker 9: data is something we've been talking about or I've been

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Speaker 9: talking about.

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Speaker 4: For a long time.

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Speaker 9: Apple is not necessarily moving out of China, but it's

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Speaker 9: augmenting its operation outside of China. So you're not seeing

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Speaker 9: many new product lines being developed in China. You're seeing

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Speaker 9: a lot of status quo in China. So the number

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Speaker 9: of supply in China for Apple, the number of production sites,

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Speaker 9: it has stayed stagnant, right, It hasn't really gone down.

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Speaker 9: But in terms of Apple's growth, all that growth that's

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Speaker 9: happening in Vietnam, that's happening in India, the new lower

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Speaker 9: en iPhone models. You're seeing a lot of production in

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Speaker 9: India as they need additional units for those regions. You're

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Speaker 9: seeing production in India. You're seeing Apple Watch production in

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Speaker 9: places like Vietnam, you're seeing new types of macs being

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Speaker 9: produced in Malaysia. So you're seeing China sort of stays

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Speaker 9: stagnant for apple but not growing. Right, So the future

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Speaker 9: of apple production and supply chain is in China. It's

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Speaker 9: the places around China. It's the Indias of the world, Malaysia, Vietnam, Thailand.

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Speaker 9: To a lesser extent, there's some work being done in Japan. Right,

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Speaker 9: So that's really the story here China, Apple, China that's

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Speaker 9: staying the same, but all that growth that's happening elsewhere

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Speaker 9: really interesting.

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Speaker 5: Mark, thank you so much.

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Speaker 3: It's going to have you back, Mark gam And on

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Speaker 3: all things Apple and its supply chain now just focusing

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Speaker 3: in on supply chain. Of course, all of this amitted

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Speaker 3: geopolitical tension of US and China. And we know the

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Speaker 3: earlier US Common Secretary Ginia Romando was meeting with her

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Speaker 3: Chinese counterpart. It's all part of the Biden administration's effort

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Speaker 3: to or try and reduce some of the tensions between

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Speaker 3: the world's two largest economies China. It says it was

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Speaker 3: a frank meeting, a constructive meeting, talking about tariffs, talking

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Speaker 3: about chip policy. Rondo, of course, had been looking to

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Speaker 3: stabilize the relations.

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Speaker 5: Just take a listen to what she said before.

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Speaker 10: We agree to establish a new Commercial Issues Working Group,

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Speaker 10: a formal working group which will involve US and Chinese

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Speaker 10: government officials and very importantly US and Chinese commercial private

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Speaker 10: sector representatives as we seek solutions on trade and investment

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Speaker 10: issues and to advance US commercial interests in China.

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Speaker 3: Understand, megan to be meeting at least once a year. Now,

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Speaker 3: coming up, let's talk bitcoin. So like a teenager in

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Speaker 3: need of its sugar high. According to Bloomberg Intelligence, how

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Speaker 3: all the details next, there's a room technology.

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Speaker 5: Time now for talking tech.

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Speaker 3: First up, soft Bang, Well, it's going to take a

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Speaker 3: group of its Indian startup founders to Silicon Balley.

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Speaker 5: That's next month for an AI tour.

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Speaker 3: Now, this is all as the Japanese investor is stepping

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Speaker 3: up its efforts to really infuse its portfolio companies with

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Speaker 3: the technology. Meanwhile, x Pun shares they sword after it

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Speaker 3: agreed to buy DD's smart car development art Now. The

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Speaker 3: deal both eliminates a potential competitor in the crowded EV

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Speaker 3: market and gives US a tech savvy partner a new venture.

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Speaker 5: Plus more on evs.

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Speaker 3: Now Japan's advanced electric battery technology company Noko is now

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Speaker 3: training on the Nasdaq.

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Speaker 5: It plans to enter the demestic leasing business with evs

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Speaker 5: that use.

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Speaker 3: As battery separated technology to help improve longevity and hate resistance.

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Speaker 5: And I know that's all of.

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Speaker 3: Your focus point in evs, but now we're going to

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Speaker 3: some of my focus point, right yeah, And.

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Speaker 6: Let me take you back to twenty seventeen. That's when

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Speaker 6: Bitcoin first reached its current level relative to the Nasdaq

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Speaker 6: one hundred stock index. The question can crypto now outperform?

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Speaker 6: A Bloomberg Intelligence note out today says it's unlikely. Federal

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Speaker 6: funds futures in one year hovering around five percent and

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Speaker 6: deflating producer prices are very different from that past easy

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Speaker 6: money day that Bitcoin grew up in. Let's bring in

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Speaker 6: Mike mcgloan from BI who wrote this peek and Mike,

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Speaker 6: you write your latest note. Bitcoin's a teenager and may

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Speaker 6: miss its sugar high.

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Speaker 4: What are you talking about?

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Speaker 11: Well, Hello, I think I guess you can appreciate. I've

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Speaker 11: raised a few teenagers there.

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Speaker 4: Are not adults.

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Speaker 11: But the bottom line in our marketers is never forget

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Speaker 11: from where you're from and what got you there. So

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Speaker 11: I look over at that tun your note every day

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Speaker 11: and I see it's a giant sucking sound for risk

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Speaker 11: assets and bitcoins. When the risky assessets in bitcoins whole premise,

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Speaker 11: it's whole lifetime. It's been under a zero or very

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Speaker 11: low interest rate environment. Now interest rates are very high

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Speaker 11: and attractive. So then I look at performance far. How

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Speaker 11: much has bitcoin performed? Well, okay, the best in history.

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Speaker 11: If you look at the first time it traded a

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Speaker 11: dour that was around twenty eleven, it's up twenty six

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Speaker 11: thousands times that. So to me, the risk is greater

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Speaker 11: that Bitcoin continues to ververt lower and all indications are

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Speaker 11: showing that it's showing divergent weakness versus the stock market,

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Speaker 11: particularly in Q three, and then you point it out

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Speaker 11: versus the nasdick. It's still at the same level since

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Speaker 11: twenty seventeen in the nasdick, and I look at it's

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Speaker 11: a much higher vole till the acid and it's showing

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Speaker 11: divergent it's showing lack of performance to really take it out,

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Speaker 11: it's higher. So I look at it as okay, risks

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Speaker 11: are tilt the lower, particularly if we look it at

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Speaker 11: what the fed's doing. You don't see any liquidity to

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Speaker 11: coming from the FED, and if they keep tightening, what

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Speaker 11: stops them from tightening potentially the stock market going down,

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Speaker 11: which means most risk asses.

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Speaker 5: Another mike that I was speaking to this weekend.

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Speaker 3: All about that sucking sound was my Novegrats, of course,

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Speaker 3: of Galaxy Digital, and he's been getting more concerned about

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Speaker 3: some of the headwinds, even though he himself is in

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Speaker 3: line to be getting one of these spottytfs. So too

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Speaker 3: was Kathy Wood, and I was on stage with her

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Speaker 3: as well. I'm interested as to what, if any tailwinds

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Speaker 3: could make you change your.

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Speaker 5: Opinion on this.

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Speaker 4: Yes, we need some kind of change.

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Speaker 11: At first, I think I have better hair than mister Novo.

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Speaker 11: The significance the first sign of tailwinds is I need

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Speaker 11: to see Listen, let's say, at least see some signs

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Speaker 11: of strength. So right now, all the big picture moving

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Speaker 11: averages are tilting lower, like one hundred week moving average.

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Speaker 11: The market's bumped up to there and it's heading lower,

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Speaker 11: and it's doing for a good reason. It sees that

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Speaker 11: FED fun future still tighten in the future. I need

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Speaker 11: to see some divergent strength. Maybe versus stock market weakness,

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Speaker 11: that would be a good sign. We're not seeing that now.

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Speaker 3: I'm a glad BlueBag Intelligence. Welcome back to Room Meg Technology.

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Speaker 6: I'm Caroline Hyde in New York and Imed Ludlow in

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Speaker 6: San Francisco.

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Speaker 4: Quit check in on the market.

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Speaker 6: So I think it's important to think about this on

439
00:22:07,440 --> 00:22:10,040
Speaker 6: a weekly basis, right son, as that one hundred is,

440
00:22:10,320 --> 00:22:12,280
Speaker 6: it's a little bit higher two tens to one percent.

441
00:22:12,520 --> 00:22:14,760
Speaker 6: We're coming off a strong week last week where then

442
00:22:14,840 --> 00:22:17,159
Speaker 6: as that one hundred posted a gain of around one

443
00:22:17,240 --> 00:22:20,200
Speaker 6: and a half percent, but it snapped three straight weeks

444
00:22:20,200 --> 00:22:21,960
Speaker 6: of losses and it was the first time this year

445
00:22:22,000 --> 00:22:24,840
Speaker 6: we'd seen that. This week on the weekly basis, we

446
00:22:24,920 --> 00:22:27,320
Speaker 6: just have a flood of economic data from around the

447
00:22:27,320 --> 00:22:30,040
Speaker 6: world here in the US hard data and sort of

448
00:22:30,119 --> 00:22:33,840
Speaker 6: more soft data that we're tracking everything from PCEE, the

449
00:22:33,880 --> 00:22:37,720
Speaker 6: Fed's preferred gauge of inflation, through to other gauges of

450
00:22:37,760 --> 00:22:42,000
Speaker 6: manufacturing confidence and activity, and economic check data out of China,

451
00:22:42,080 --> 00:22:45,000
Speaker 6: and increasingly when we worry about tech, we are worried

452
00:22:45,000 --> 00:22:47,080
Speaker 6: about China as kind of the engine room of the

453
00:22:47,080 --> 00:22:49,119
Speaker 6: global economy. Here's an interesting one for you as well.

454
00:22:49,119 --> 00:22:51,520
Speaker 6: We talked about door Dash and it's AI efforts. A

455
00:22:51,560 --> 00:22:56,159
Speaker 6: new one out this Monday morning, an AI powered voice assistant.

456
00:22:56,240 --> 00:22:58,840
Speaker 6: Now it's really interesting because in the statement door Dash

457
00:22:58,880 --> 00:23:01,639
Speaker 6: is nap right, but saying that so many people still

458
00:23:01,680 --> 00:23:04,640
Speaker 6: phone in their food orders, but the restaurant's too busy

459
00:23:04,680 --> 00:23:07,359
Speaker 6: to answer the phone. Here's their solution, get AI to

460
00:23:07,400 --> 00:23:09,960
Speaker 6: do it. They're saying that fifty percent of all calls

461
00:23:09,960 --> 00:23:12,879
Speaker 6: are missed. So now they're trying in multiple languages in

462
00:23:13,040 --> 00:23:15,800
Speaker 6: AI power syst and you phone up, the AI interacts

463
00:23:15,800 --> 00:23:17,840
Speaker 6: with you. It's just in trial phase right now. It

464
00:23:17,880 --> 00:23:20,119
Speaker 6: had boosted the stock earlier in the session, but was

465
00:23:20,200 --> 00:23:22,080
Speaker 6: software by three tenths a one percent.

466
00:23:22,200 --> 00:23:23,879
Speaker 4: More AI, More AI.

467
00:23:24,080 --> 00:23:26,360
Speaker 5: More on door Dash for a little bit as well.

468
00:23:26,359 --> 00:23:29,040
Speaker 3: Then let's talk about a competitor that's about to go public.

469
00:23:29,160 --> 00:23:31,560
Speaker 5: I'm talking a course of Instacart. We want to get

470
00:23:31,560 --> 00:23:31,880
Speaker 5: back to.

471
00:23:31,800 --> 00:23:35,160
Speaker 3: The conversation all around this year's IPOs. We're all bracing

472
00:23:35,160 --> 00:23:36,960
Speaker 3: for them. Greg Martin and Polas a Say, co founder

473
00:23:36,960 --> 00:23:39,679
Speaker 3: and managing director of rain Maker Securities, which specializes in

474
00:23:39,720 --> 00:23:40,920
Speaker 3: pre IPO investing.

475
00:23:40,920 --> 00:23:42,840
Speaker 5: You're also, of course still an active v C.

476
00:23:43,080 --> 00:23:47,119
Speaker 3: Greg and much experience in prior history of working with

477
00:23:47,160 --> 00:23:49,600
Speaker 3: these sort of companies to build them up for this moment.

478
00:23:50,119 --> 00:23:52,480
Speaker 3: I'm interested in door Dash, of course what five to

479
00:23:52,520 --> 00:23:56,959
Speaker 3: six times overall focus on on in terms of active

480
00:23:57,080 --> 00:23:59,760
Speaker 3: user base compared to instacar. That's what the Bloue meg

481
00:23:59,760 --> 00:24:02,320
Speaker 3: and tell WHI not is telling us today. How are

482
00:24:02,320 --> 00:24:04,560
Speaker 3: you looking at the perspective? How are you looking at

483
00:24:04,600 --> 00:24:07,080
Speaker 3: the filings and thinking, oh, but it's profitable.

484
00:24:08,200 --> 00:24:10,879
Speaker 12: You know, and sahart will most certainly always be compared

485
00:24:10,880 --> 00:24:14,080
Speaker 12: to DoorDash and thank you for having me this morning,

486
00:24:14,760 --> 00:24:18,320
Speaker 12: but it is it is different in a few important ways,

487
00:24:18,840 --> 00:24:19,080
Speaker 12: you know.

488
00:24:19,240 --> 00:24:20,080
Speaker 2: It's it has.

489
00:24:19,960 --> 00:24:24,560
Speaker 12: A pretty significant advertising business, which is very profitable, very

490
00:24:24,640 --> 00:24:29,679
Speaker 12: high margin. In fact, actually even larger than Uber's advertising business.

491
00:24:29,680 --> 00:24:32,840
Speaker 12: So I think that's a big distinguishing factor. They obviously

492
00:24:33,119 --> 00:24:36,000
Speaker 12: they don't have the same kind of order order growths

493
00:24:36,520 --> 00:24:38,920
Speaker 12: as door dash has, which I think is one potential,

494
00:24:39,960 --> 00:24:41,919
Speaker 12: you know, low light of the business. But they've been

495
00:24:41,960 --> 00:24:46,360
Speaker 12: able to increase transaction fees per user and per order,

496
00:24:46,880 --> 00:24:50,719
Speaker 12: which which has enabled them despite flat order growth in

497
00:24:50,760 --> 00:24:52,919
Speaker 12: the first half of twenty twenty three, it's enabled them

498
00:24:52,960 --> 00:24:56,280
Speaker 12: to actually grow their transaction revenues by thirty one percent

499
00:24:57,200 --> 00:24:59,320
Speaker 12: you know, if you look at their revenues, they probably

500
00:24:59,359 --> 00:25:02,520
Speaker 12: project to be around three billion in twenty twenty three,

501
00:25:03,440 --> 00:25:07,120
Speaker 12: with better margins than way better margins than door Dash.

502
00:25:07,440 --> 00:25:10,000
Speaker 12: You know, if you look at door Dashes, you know,

503
00:25:10,520 --> 00:25:13,399
Speaker 12: revenue multiple, it's in the three and a half times range.

504
00:25:13,440 --> 00:25:18,439
Speaker 12: So it probably portends an IPO offering for Instacart, assuming

505
00:25:18,480 --> 00:25:20,720
Speaker 12: they're able to make it to the finish line in

506
00:25:20,760 --> 00:25:24,560
Speaker 12: the ten to you know, twelve billion valuation range, which

507
00:25:24,560 --> 00:25:28,240
Speaker 12: I think would you be an appropriate level relative to

508
00:25:28,240 --> 00:25:29,280
Speaker 12: where door dash sits.

509
00:25:30,080 --> 00:25:35,000
Speaker 3: Of course, what Instacart did, unlike some currently private companies,

510
00:25:35,080 --> 00:25:37,480
Speaker 3: is they took that bitter pill. They decided to slash

511
00:25:37,520 --> 00:25:42,040
Speaker 3: their overall valuation in the private market and then some

512
00:25:42,800 --> 00:25:46,040
Speaker 3: has that been important? How much a pentop demand is

513
00:25:46,080 --> 00:25:48,440
Speaker 3: there from public investors now for this sort of a name.

514
00:25:48,440 --> 00:25:50,080
Speaker 5: What are you seeing on your platform?

515
00:25:50,520 --> 00:25:54,000
Speaker 12: Well, it was a necessary reduction in evaluation. Their last private

516
00:25:54,080 --> 00:25:56,840
Speaker 12: round was in the thirty nine billion range. You know,

517
00:25:56,880 --> 00:26:00,159
Speaker 12: they kind of slash their slash their internal evaluation to

518
00:26:00,160 --> 00:26:04,600
Speaker 12: to around ten billion, which which frankly gives their employees

519
00:26:04,640 --> 00:26:09,040
Speaker 12: who were you know, issued options, any recent investors and

520
00:26:09,560 --> 00:26:14,000
Speaker 12: most likely any public market investors upside, so they you know,

521
00:26:14,080 --> 00:26:15,840
Speaker 12: I think it was important for them to level set,

522
00:26:15,880 --> 00:26:17,800
Speaker 12: and frankly, they didn't have a choice. The market spoke

523
00:26:17,840 --> 00:26:21,199
Speaker 12: to them and that's where the valuation is more appropriate.

524
00:26:22,000 --> 00:26:22,240
Speaker 2: I do.

525
00:26:22,400 --> 00:26:25,080
Speaker 12: I do think it bodes well for public offering. I mean,

526
00:26:25,080 --> 00:26:29,199
Speaker 12: the company is demonstrating solid growth, solid profitability. You know,

527
00:26:29,240 --> 00:26:31,840
Speaker 12: they've talked about ways in which AI is going to

528
00:26:31,840 --> 00:26:33,919
Speaker 12: help them. And if you look at our platform at

529
00:26:34,000 --> 00:26:37,760
Speaker 12: rain Maker, we handle a very large volume of private

530
00:26:37,840 --> 00:26:42,880
Speaker 12: secondary transactions. We're starting to see orders come in, which

531
00:26:42,920 --> 00:26:46,640
Speaker 12: is reflecting you know, strong demand for you know, a potentially.

532
00:26:46,440 --> 00:26:48,880
Speaker 2: I PO that you know in several weeks.

533
00:26:49,480 --> 00:26:51,680
Speaker 12: People often like to get in now because they think

534
00:26:51,680 --> 00:26:54,320
Speaker 12: there's going to be upside, you know, from the IPO

535
00:26:54,480 --> 00:26:55,280
Speaker 12: price and beyond.

536
00:26:55,840 --> 00:26:58,200
Speaker 3: And of course we wait road shows and I mean

537
00:26:58,359 --> 00:26:59,920
Speaker 3: it's going to be a busy stot to set ten

538
00:27:00,160 --> 00:27:02,520
Speaker 3: anythink of all these sand companies having to hit the

539
00:27:02,600 --> 00:27:05,280
Speaker 3: road to explain their stories because it's not the only IPO.

540
00:27:06,000 --> 00:27:06,159
Speaker 2: You know.

541
00:27:06,200 --> 00:27:08,959
Speaker 6: What's astonishing to me is on this program we've been

542
00:27:09,000 --> 00:27:12,800
Speaker 6: talking about how dead, frozen, inactive the market is, and

543
00:27:12,880 --> 00:27:15,040
Speaker 6: all of the news flows happened in just seven days.

544
00:27:15,080 --> 00:27:18,160
Speaker 4: Greg On filed August.

545
00:27:17,800 --> 00:27:21,160
Speaker 6: Twenty First, how much was that starting gun for you

546
00:27:21,640 --> 00:27:23,959
Speaker 6: to kick start the rest of the of the window.

547
00:27:24,800 --> 00:27:26,480
Speaker 12: It was a big starting gun, you know, if you

548
00:27:26,480 --> 00:27:27,960
Speaker 12: look at if you take a little bit of a

549
00:27:28,000 --> 00:27:30,120
Speaker 12: step back, I think one of the sort of you know,

550
00:27:30,760 --> 00:27:33,639
Speaker 12: starting guns started with Kava. I think Kava was an

551
00:27:33,680 --> 00:27:35,720
Speaker 12: eye opener for a lot of people. It was a

552
00:27:35,800 --> 00:27:39,479
Speaker 12: sort of a quiet company that traded up significantly on

553
00:27:39,520 --> 00:27:42,200
Speaker 12: its IPO and has actually held up pretty well, close

554
00:27:42,240 --> 00:27:45,160
Speaker 12: to one hundred percent since at priced. You know, then

555
00:27:45,200 --> 00:27:48,320
Speaker 12: you had odity technology, and then you had obviously Benpaths,

556
00:27:48,320 --> 00:27:51,440
Speaker 12: which has been on a huge, a huge soar incline

557
00:27:51,480 --> 00:27:53,879
Speaker 12: this last week. So I think people see that there

558
00:27:53,920 --> 00:27:57,119
Speaker 12: is receptivity in the IPO markets, and I think what

559
00:27:57,240 --> 00:27:58,960
Speaker 12: started as a trickle could end.

560
00:27:58,920 --> 00:27:59,879
Speaker 2: Up turning into a fly.

561
00:28:00,119 --> 00:28:03,000
Speaker 12: Obviously, last week we had ARM, we had Instacart, we

562
00:28:03,040 --> 00:28:06,400
Speaker 12: had Clavio. Those are much bigger IPOs. I think there'll

563
00:28:06,400 --> 00:28:09,199
Speaker 12: be a bigger test of where the market really is.

564
00:28:09,760 --> 00:28:11,720
Speaker 12: You know, ARM is more of a flat company, but

565
00:28:11,760 --> 00:28:14,960
Speaker 12: it's also telling you know, an AI story. You know,

566
00:28:15,080 --> 00:28:17,560
Speaker 12: as you see you know, kind of riding the coattails

567
00:28:17,600 --> 00:28:20,680
Speaker 12: of Nvidia. So you know, I think arm will be interesting.

568
00:28:20,760 --> 00:28:23,120
Speaker 12: Instacart will also be a large IPO. I mean we're

569
00:28:23,119 --> 00:28:26,720
Speaker 12: talking probably built you know, several billion plus of proceeds

570
00:28:26,720 --> 00:28:29,000
Speaker 12: between the two companies. So I think these will be

571
00:28:29,119 --> 00:28:31,880
Speaker 12: real tests for the market. But I think they're both

572
00:28:31,920 --> 00:28:35,400
Speaker 12: strong companies with good stories, and you know, I expect

573
00:28:35,480 --> 00:28:37,800
Speaker 12: if if they if they succeed, and I do think

574
00:28:37,840 --> 00:28:41,360
Speaker 12: bankers will probably still try and be conservative in pricing

575
00:28:41,360 --> 00:28:44,080
Speaker 12: because they want to show that there's an uptick for

576
00:28:44,160 --> 00:28:46,320
Speaker 12: buyers who take the risk of buying an IPO, that

577
00:28:46,360 --> 00:28:49,760
Speaker 12: we might actually start seeing the floodgates open again. Yeah,

578
00:28:49,840 --> 00:28:52,600
Speaker 12: and we have several other companies that are ready to

579
00:28:52,640 --> 00:28:53,800
Speaker 12: go if they see that happen.

580
00:28:54,560 --> 00:28:56,120
Speaker 6: I had a cup of tv O day with a

581
00:28:56,120 --> 00:28:58,440
Speaker 6: tech banker and we talked about Carver and I said,

582
00:28:58,480 --> 00:29:01,000
Speaker 6: that's not a tech company, and the banker made the

583
00:29:01,040 --> 00:29:03,560
Speaker 6: point that it is a growth company though, And so

584
00:29:03,640 --> 00:29:07,440
Speaker 6: you can see how investors treat a growth name interesting signal.

585
00:29:07,520 --> 00:29:09,720
Speaker 6: Caroline made a really excellent point owner in the show

586
00:29:10,440 --> 00:29:15,320
Speaker 6: Data Bricks is raise money, right an interesting valuation? Is

587
00:29:15,360 --> 00:29:19,040
Speaker 6: that a signal that they won't IPO? Why raise and

588
00:29:19,440 --> 00:29:21,120
Speaker 6: negotiate up with your investors?

589
00:29:21,680 --> 00:29:22,520
Speaker 4: Ahead of a listing.

590
00:29:24,120 --> 00:29:27,000
Speaker 12: You know, it's not necessarily an indication you know, they

591
00:29:27,080 --> 00:29:29,320
Speaker 12: have They're one of the few companies that has been

592
00:29:29,400 --> 00:29:32,120
Speaker 12: continually investing even through the downturn.

593
00:29:33,080 --> 00:29:35,040
Speaker 2: They have such a huge market in front of them.

594
00:29:35,520 --> 00:29:38,280
Speaker 12: You know, they are a significant AI company, a significant

595
00:29:38,360 --> 00:29:42,040
Speaker 12: data company similar to Snowflake. They compete with Snowflake. They

596
00:29:42,080 --> 00:29:46,400
Speaker 12: have massive scale, massive growth potential. So I view them

597
00:29:46,400 --> 00:29:49,120
Speaker 12: as a company that, you know, could go public whenever.

598
00:29:49,280 --> 00:29:52,880
Speaker 12: It may portend more likely a direct listing when they

599
00:29:52,880 --> 00:29:55,760
Speaker 12: go public, because they may not need to raise capital,

600
00:29:55,800 --> 00:29:58,280
Speaker 12: but they may just want to create liquidity for their

601
00:29:58,280 --> 00:30:01,800
Speaker 12: investors and shareholders. So I wouldn't necessarily say it means

602
00:30:01,800 --> 00:30:04,120
Speaker 12: they're not going public. I think, you know, they will

603
00:30:04,160 --> 00:30:06,480
Speaker 12: always take the position that we will go public when

604
00:30:06,520 --> 00:30:08,320
Speaker 12: the market is right for us. And if I think

605
00:30:08,320 --> 00:30:11,920
Speaker 12: if they see a really buoyant IPO market with some

606
00:30:11,960 --> 00:30:14,080
Speaker 12: of these IPOs that we've discussed.

607
00:30:13,680 --> 00:30:15,560
Speaker 2: I actually think they might go sooner than later.

608
00:30:15,920 --> 00:30:18,479
Speaker 3: Greg, I'm interested as to the hunger for this and

609
00:30:18,520 --> 00:30:21,440
Speaker 3: who it's from. Who is coming to your platform to

610
00:30:21,480 --> 00:30:23,800
Speaker 3: get ahead of the listing, Who is going to be

611
00:30:23,840 --> 00:30:26,680
Speaker 3: there to take down this listing, Which kind of investors

612
00:30:26,680 --> 00:30:27,760
Speaker 3: are interested at this moment.

613
00:30:29,040 --> 00:30:31,040
Speaker 12: You know, we're starting to see all manners. I mean,

614
00:30:31,120 --> 00:30:34,840
Speaker 12: for you know, for eighteen months, everybody kind of retreated

615
00:30:34,920 --> 00:30:37,520
Speaker 12: other than other than the investors that had a pure

616
00:30:37,560 --> 00:30:40,880
Speaker 12: mandate to only do late stage private secondaries. We're now

617
00:30:40,920 --> 00:30:43,840
Speaker 12: starting to see the big IPO buyers and obviously we're

618
00:30:44,200 --> 00:30:48,520
Speaker 12: we're hearing of the data bricks investment. You know, we're

619
00:30:48,760 --> 00:30:51,840
Speaker 12: starting to see them big institutions. We're starting to see

620
00:30:52,160 --> 00:30:57,040
Speaker 12: family offices, We're starting to see frankly high net worth individuals.

621
00:30:57,640 --> 00:30:59,120
Speaker 2: We're starting to see a big.

622
00:30:58,960 --> 00:31:01,880
Speaker 12: Flow of people that are are are just there to say, hey,

623
00:31:02,080 --> 00:31:03,680
Speaker 12: I don't want to miss the next KAVA, I don't

624
00:31:03,680 --> 00:31:05,280
Speaker 12: want to miss the next bind pass, I don't want

625
00:31:05,280 --> 00:31:08,640
Speaker 12: to miss the next podity. So I think as investors

626
00:31:08,640 --> 00:31:11,040
Speaker 12: search free yield, and you know, remember the bar is high.

627
00:31:11,280 --> 00:31:13,440
Speaker 12: The risk free yield now is five to six percent

628
00:31:13,520 --> 00:31:16,600
Speaker 12: versus zero. Yes, so it has to be a quality

629
00:31:16,640 --> 00:31:19,400
Speaker 12: IPO to entice investors to come in at this point.

630
00:31:19,800 --> 00:31:22,400
Speaker 3: And Greg, I'm going to go to a sensitive sort

631
00:31:22,440 --> 00:31:24,920
Speaker 3: of topic in the VC space right now, and you

632
00:31:24,960 --> 00:31:25,560
Speaker 3: are still one.

633
00:31:25,600 --> 00:31:28,280
Speaker 5: You've got Archer Venture Capital. Of course, you are at

634
00:31:28,280 --> 00:31:29,120
Speaker 5: red point before.

635
00:31:29,920 --> 00:31:33,000
Speaker 3: There is this really interesting dynamic that's happened is that

636
00:31:33,080 --> 00:31:35,160
Speaker 3: all these VC companies have raised a.

637
00:31:35,160 --> 00:31:38,080
Speaker 5: Ton of money. They need to put that to work.

638
00:31:38,120 --> 00:31:39,840
Speaker 3: They don't want to particularly have to give money back

639
00:31:39,880 --> 00:31:42,440
Speaker 3: to LPs. I'm just interested as to what tensions are

640
00:31:42,480 --> 00:31:44,960
Speaker 3: being felt in the venture community in this space right

641
00:31:44,960 --> 00:31:47,880
Speaker 3: now as they are looking to have these liquidity moments

642
00:31:47,920 --> 00:31:50,240
Speaker 3: and then also try and find where to put money

643
00:31:50,280 --> 00:31:52,880
Speaker 3: to work. We saw two price interested in of course

644
00:31:52,960 --> 00:31:54,840
Speaker 3: data breaks, but that's a crossover my name.

645
00:31:55,680 --> 00:31:55,880
Speaker 2: Yeah.

646
00:31:55,880 --> 00:31:57,760
Speaker 12: I mean the biggest tension if you look at you know,

647
00:31:58,640 --> 00:32:01,520
Speaker 12: the pandemic and twenty twenty one, there was a real

648
00:32:01,600 --> 00:32:05,640
Speaker 12: grow grow growth, spend spend spend mentality and so a

649
00:32:05,680 --> 00:32:10,240
Speaker 12: lot of their winners created huge burn rates and we're

650
00:32:10,280 --> 00:32:13,200
Speaker 12: consuming cash at an alarming rate. And so the first

651
00:32:13,320 --> 00:32:15,920
Speaker 12: order of business for venture capitalists is to make sure

652
00:32:16,360 --> 00:32:19,920
Speaker 12: that your big, you know, scaling businesses that are also

653
00:32:19,960 --> 00:32:22,920
Speaker 12: spending a lot of money are well capitalized. And because

654
00:32:22,960 --> 00:32:25,800
Speaker 12: they went through massive burn you're seeing a ton of

655
00:32:25,880 --> 00:32:29,880
Speaker 12: reserve and frankly, you know, a retrenchment on new investments

656
00:32:29,920 --> 00:32:33,000
Speaker 12: for venture capitalists to make sure they're supporting these companies.

657
00:32:33,360 --> 00:32:34,600
Speaker 2: So there's not a lot of.

658
00:32:34,600 --> 00:32:37,880
Speaker 12: New investments into new companies, but there's a lot of

659
00:32:38,320 --> 00:32:41,280
Speaker 12: using this capital to make sure that your big scale

660
00:32:41,320 --> 00:32:44,280
Speaker 12: businesses have the cash, and of course they're also making

661
00:32:44,320 --> 00:32:46,760
Speaker 12: sure they're not spending money at the same rate. But

662
00:32:46,880 --> 00:32:49,520
Speaker 12: obviously there was an expectation that there would be a

663
00:32:49,560 --> 00:32:52,280
Speaker 12: lot of liquidity by now. There is an expectation of

664
00:32:52,280 --> 00:32:55,200
Speaker 12: these companies we the public, and now they're seeing, hey,

665
00:32:55,240 --> 00:32:58,640
Speaker 12: the IPO bar is raised. We need two or three

666
00:32:58,720 --> 00:33:01,440
Speaker 12: more years to get the companies to an exit, and

667
00:33:01,480 --> 00:33:03,280
Speaker 12: we need to make sure we have the capital in

668
00:33:03,360 --> 00:33:06,680
Speaker 12: these businesses to sustain those businesses so they can grow

669
00:33:06,760 --> 00:33:10,000
Speaker 12: frankly into the crazy evaluations that they are raised at.

670
00:33:10,040 --> 00:33:11,080
Speaker 2: In twenty twenty one.

671
00:33:11,720 --> 00:33:15,000
Speaker 6: Greg, you mentioned the attractiveness of the yield on benchmark

672
00:33:15,080 --> 00:33:20,240
Speaker 6: notes impacting IPOs. What's the biggest quickly economic factor that

673
00:33:20,520 --> 00:33:22,000
Speaker 6: you take into account right now?

674
00:33:23,360 --> 00:33:25,920
Speaker 12: Interest rates are always number one when you think about

675
00:33:25,920 --> 00:33:29,880
Speaker 12: growth business and tech businesses are mostly valued as growth businesses.

676
00:33:30,240 --> 00:33:32,600
Speaker 12: So when the tenure goes from one hundred and fifty

677
00:33:32,640 --> 00:33:36,520
Speaker 12: to four hundred and thirty basis points, you know, that's

678
00:33:36,680 --> 00:33:39,840
Speaker 12: really significant that crushes multiples, and we obviously saw it

679
00:33:39,840 --> 00:33:42,280
Speaker 12: in twenty twenty two in terms of the NASTAQ, even

680
00:33:42,320 --> 00:33:43,680
Speaker 12: though it's up a little bit since then.

681
00:33:44,120 --> 00:33:45,960
Speaker 2: So interest rates sensitivity is.

682
00:33:46,040 --> 00:33:48,840
Speaker 12: Very high, and you know, we're at a high point

683
00:33:48,840 --> 00:33:51,600
Speaker 12: on the tenure. So I think people are are really

684
00:33:51,640 --> 00:33:53,880
Speaker 12: focused on are we going to have a declining interest

685
00:33:53,960 --> 00:33:56,800
Speaker 12: rate environment and when? Or you know, we're all obviously

686
00:33:56,800 --> 00:33:59,720
Speaker 12: all paying close attention to the September FED meeting, where

687
00:33:59,720 --> 00:34:01,880
Speaker 12: a lot of us are expecting things are still going up.

688
00:34:01,880 --> 00:34:02,680
Speaker 2: I mean, inflation is.

689
00:34:02,680 --> 00:34:04,760
Speaker 12: Still out there and we're not hearing you know that

690
00:34:04,800 --> 00:34:06,760
Speaker 12: the FAT is ready to start lowering rates.

691
00:34:07,320 --> 00:34:08,960
Speaker 3: And boy if we've got a big week in terms

692
00:34:09,000 --> 00:34:11,719
Speaker 3: of economic data even though we've got thin volumes out

693
00:34:11,719 --> 00:34:14,560
Speaker 3: there still now. Greg Martin Brilliant from macro to Micro,

694
00:34:14,640 --> 00:34:17,319
Speaker 3: the co founder managing director of rain Maker Securities, of course,

695
00:34:17,520 --> 00:34:20,160
Speaker 3: still very active in the venture space with Archiventure Capital too.

696
00:34:20,560 --> 00:34:23,600
Speaker 3: Coming up, Look, we'll talk tech investing for the fastest

697
00:34:23,600 --> 00:34:27,719
Speaker 3: growing demographic in the world, the older generation. I mean

698
00:34:27,760 --> 00:34:31,120
Speaker 3: Meller Levy of Primetime Partners joining us. Next, there's a

699
00:34:31,160 --> 00:34:49,200
Speaker 3: bluebog technology.

700
00:34:55,520 --> 00:34:57,520
Speaker 10: I think you have to like healthcare just because of

701
00:34:57,560 --> 00:35:00,240
Speaker 10: the generational tree that's going on, the world is getting.

702
00:35:01,800 --> 00:35:05,279
Speaker 3: Sarah hunt Alpine words there and really the focus on

703
00:35:05,440 --> 00:35:07,480
Speaker 3: generational shifts at the moment, it's going to be the

704
00:35:07,480 --> 00:35:10,360
Speaker 3: focus for our VC spotlight today. We're focusing on investing

705
00:35:10,360 --> 00:35:13,600
Speaker 3: in the technology that's driving innovation for that fastest growing

706
00:35:13,600 --> 00:35:16,239
Speaker 3: demographic in the country and in the world, it's the

707
00:35:16,320 --> 00:35:18,799
Speaker 3: aging population. I'm really pleased to welcome to the show.

708
00:35:18,800 --> 00:35:21,720
Speaker 3: Abbi min Alevi, co founder and managing partner of Primetime Partners,

709
00:35:21,840 --> 00:35:24,560
Speaker 3: an early stage bench capital fund that invests in people

710
00:35:24,680 --> 00:35:27,680
Speaker 3: and companies that transferm quality of life for older adults.

711
00:35:27,840 --> 00:35:30,799
Speaker 3: And at this moment, when clearly the need is there,

712
00:35:31,000 --> 00:35:33,600
Speaker 3: when clearly big companies are thinking of the benefits to

713
00:35:33,640 --> 00:35:36,840
Speaker 3: support those that are supporting the older generation as well,

714
00:35:37,400 --> 00:35:40,520
Speaker 3: is it okay what are valuations like in that space

715
00:35:40,600 --> 00:35:43,600
Speaker 3: right now to be allocating to Well, I'm so glad you.

716
00:35:43,600 --> 00:35:47,040
Speaker 1: Guys are spending time on this tabic. We do proceed

717
00:35:47,120 --> 00:35:49,799
Speaker 1: to Series A investing and one of the best things

718
00:35:49,840 --> 00:35:52,719
Speaker 1: about being an early stage investor is that valuations have

719
00:35:52,800 --> 00:35:56,640
Speaker 1: stayed sane through the crazy bubble, if you will, of

720
00:35:56,680 --> 00:35:59,920
Speaker 1: twenty twenty one. What we're seeing at the later stage

721
00:36:00,160 --> 00:36:05,440
Speaker 1: is that the valuations really are sticking somewhat formulaically to

722
00:36:05,440 --> 00:36:08,239
Speaker 1: what healthcare services and healthcare it typically are, which is

723
00:36:08,280 --> 00:36:11,160
Speaker 1: anywhere from four to ten times, and so within that

724
00:36:11,200 --> 00:36:14,840
Speaker 1: there's quite a wide range, but the valuations haven't yet

725
00:36:15,120 --> 00:36:19,600
Speaker 1: become so astronomical, largely because most of what we do

726
00:36:19,680 --> 00:36:22,640
Speaker 1: is invest in healthcare related businesses and there still is

727
00:36:22,719 --> 00:36:25,439
Speaker 1: usually a human component to a lot of what we do,

728
00:36:25,719 --> 00:36:30,600
Speaker 1: because when you're working with an older population with healthcare delivery,

729
00:36:31,000 --> 00:36:34,440
Speaker 1: we're not talking about robots here, We're talking about human

730
00:36:34,440 --> 00:36:37,160
Speaker 1: to human and so a lot of those valuations stay

731
00:36:37,239 --> 00:36:39,359
Speaker 1: within the four to ten times because of that.

732
00:36:39,600 --> 00:36:41,440
Speaker 3: What's interesting though, is that there are a number of

733
00:36:41,440 --> 00:36:43,600
Speaker 3: you put photio companies. I'm sure that a colony trying

734
00:36:43,600 --> 00:36:46,480
Speaker 3: to understand how all social intelligence can make them a

735
00:36:46,520 --> 00:36:48,920
Speaker 3: little less dependent on the human or indeed you've already

736
00:36:48,960 --> 00:36:52,880
Speaker 3: invested in companies that mo is AI is not becoming

737
00:36:52,880 --> 00:36:53,920
Speaker 3: a theme, even more.

738
00:36:53,719 --> 00:36:56,360
Speaker 1: Absolutely becoming a theme. It's not at the point where

739
00:36:56,719 --> 00:37:01,319
Speaker 1: AI is replacing medical professionals and clinical decisions, but it's

740
00:37:01,360 --> 00:37:04,280
Speaker 1: absolutely an enablement tool. For example, one of our portfolio

741
00:37:04,360 --> 00:37:07,680
Speaker 1: companies called Duos, they work with health plans to engage

742
00:37:07,680 --> 00:37:10,040
Speaker 1: their members to understand what benefits they have both within

743
00:37:10,080 --> 00:37:12,560
Speaker 1: the plan as well as the thirty billion dollars of

744
00:37:12,680 --> 00:37:16,319
Speaker 1: unused federal government benefits, and they're using AI really from

745
00:37:16,360 --> 00:37:20,320
Speaker 1: a personalization perspective to make sure they're delivering the right recommendations.

746
00:37:20,520 --> 00:37:21,200
Speaker 4: So we see a.

747
00:37:21,120 --> 00:37:24,600
Speaker 1: Lot of AI around personalization. We see AI a ton

748
00:37:24,680 --> 00:37:29,040
Speaker 1: on diagnostics. One of our portfolio companies, Kinsugi can diagnose

749
00:37:29,080 --> 00:37:34,280
Speaker 1: depression in older adults using their voice, not natural language processing,

750
00:37:34,320 --> 00:37:36,880
Speaker 1: but actually voice vibrations, and so AI is helping them

751
00:37:36,920 --> 00:37:41,040
Speaker 1: there within dementia care and diagnostics there as you know

752
00:37:41,160 --> 00:37:44,200
Speaker 1: that population is about to blossom, we're seeing a lot

753
00:37:44,200 --> 00:37:47,320
Speaker 1: of AI on the diagnostics side. We do not invest

754
00:37:47,440 --> 00:37:52,320
Speaker 1: in healthcare discovery drug discovery, but that is huge piece

755
00:37:52,640 --> 00:37:55,359
Speaker 1: of innovation in drug discovery, and the speed of drug

756
00:37:55,360 --> 00:37:58,400
Speaker 1: discovery is AI. So we're seeing really AI as an

757
00:37:58,520 --> 00:38:03,400
Speaker 1: enablement of the ability to scale healthcare to this population that,

758
00:38:03,640 --> 00:38:07,640
Speaker 1: as the you mentioned before, is doubling in size.

759
00:38:08,400 --> 00:38:10,960
Speaker 6: So the population in the US of people way over

760
00:38:11,080 --> 00:38:15,480
Speaker 6: sixty five is about sixteen percent of our US population,

761
00:38:15,600 --> 00:38:17,960
Speaker 6: and we expect it to jump to twenty two percent

762
00:38:18,440 --> 00:38:19,440
Speaker 6: by twenty forty.

763
00:38:19,480 --> 00:38:21,240
Speaker 4: According to the US Department of Health.

764
00:38:21,040 --> 00:38:24,239
Speaker 6: And Human Services, you're a VC with a long time

765
00:38:24,280 --> 00:38:25,480
Speaker 6: horizon to invest.

766
00:38:26,200 --> 00:38:28,560
Speaker 4: How do you ride along the trend?

767
00:38:28,640 --> 00:38:30,760
Speaker 6: How do you make sure that you're invested in parts

768
00:38:31,040 --> 00:38:31,759
Speaker 6: that follow it.

769
00:38:33,000 --> 00:38:35,520
Speaker 1: So there's one piece of it, which is you've got

770
00:38:35,560 --> 00:38:39,080
Speaker 1: this doubling of the older population on a global scale,

771
00:38:39,680 --> 00:38:43,600
Speaker 1: and that absolutely creates huge infrastructure challenges for healthcare, for

772
00:38:43,640 --> 00:38:47,399
Speaker 1: financial services, for housing, and so you've got these very

773
00:38:47,400 --> 00:38:50,680
Speaker 1: big issues, almost like climate change, where the data's always

774
00:38:50,719 --> 00:38:53,320
Speaker 1: been there. People are finally waking up to this seismic

775
00:38:53,360 --> 00:38:54,719
Speaker 1: shift in the demography.

776
00:38:55,239 --> 00:38:56,359
Speaker 5: But what's happening is.

777
00:38:56,280 --> 00:39:00,480
Speaker 1: Really the urgent needs of large fortune one hundred healthcare companies,

778
00:39:00,480 --> 00:39:02,320
Speaker 1: which is they need to take costs out of the system.

779
00:39:03,280 --> 00:39:05,880
Speaker 1: US healthcare spend is eighteen percent of our GDP. We

780
00:39:05,920 --> 00:39:09,320
Speaker 1: have the most expensive healthcare system in the entire world.

781
00:39:09,440 --> 00:39:10,320
Speaker 4: So what we're.

782
00:39:10,239 --> 00:39:13,360
Speaker 1: Investing in are businesses that help take costs out today.

783
00:39:13,400 --> 00:39:16,560
Speaker 1: So for example, fall prevention number one reason why older

784
00:39:16,600 --> 00:39:19,360
Speaker 1: adults go to the hospital. One and four older Americans

785
00:39:19,400 --> 00:39:22,759
Speaker 1: will fall, and that creates fifty billion dollars of cost

786
00:39:22,840 --> 00:39:25,200
Speaker 1: in our healthcare system. You prevent one fall, that's a

787
00:39:25,200 --> 00:39:28,440
Speaker 1: tremendous value. So businesses we invest in like Bold or

788
00:39:28,520 --> 00:39:32,640
Speaker 1: rosarium from home improvement. These are businesses that really help

789
00:39:32,680 --> 00:39:34,160
Speaker 1: take costs out of the system today.

790
00:39:35,000 --> 00:39:37,439
Speaker 6: Are there any areas you stay away from you just say,

791
00:39:37,520 --> 00:39:42,239
Speaker 6: don't do that, don't invest.

792
00:39:42,719 --> 00:39:46,120
Speaker 1: This might be a contrarian point of view, but we

793
00:39:46,200 --> 00:39:49,840
Speaker 1: think when people talk about the tech enabled home, while

794
00:39:50,200 --> 00:39:53,000
Speaker 1: ninety percent of Americans want to age in place, the

795
00:39:53,480 --> 00:39:57,680
Speaker 1: answer isn't necessarily to make everything kind of like the Jetsons.

796
00:39:58,080 --> 00:40:01,719
Speaker 1: I guess I'm displaying my age here. Everything is robots

797
00:40:01,760 --> 00:40:05,720
Speaker 1: and technology and answered by the cloud that we believe

798
00:40:06,000 --> 00:40:09,319
Speaker 1: that that is an area where remote patient monitoring and

799
00:40:09,520 --> 00:40:12,240
Speaker 1: home care in the home is a great place to invest.

800
00:40:12,440 --> 00:40:16,439
Speaker 1: But fully digitize robotic solutions, We're just not there yet,

801
00:40:16,480 --> 00:40:19,080
Speaker 1: and that's not really the type of care that humans

802
00:40:19,120 --> 00:40:22,280
Speaker 1: want for themselves and older adult children want for their parents.

803
00:40:23,280 --> 00:40:26,560
Speaker 5: We love what I'm tiring you Abby. Thank you very much. Adena,

804
00:40:26,560 --> 00:40:28,000
Speaker 5: it's been enjoy having you in.

805
00:40:35,800 --> 00:40:37,000
Speaker 4: All right, Let's head to space.

806
00:40:37,080 --> 00:40:40,920
Speaker 6: The crew Dragon spacecraft launched by SpaceX, successfully docked with

807
00:40:41,040 --> 00:40:43,680
Speaker 6: the International Space Station over the weekend. The docking took

808
00:40:43,719 --> 00:40:47,600
Speaker 6: place while the two spacecrafts were orbiting above Australia as

809
00:40:47,600 --> 00:40:50,240
Speaker 6: its crew of four astronauts began their six month mission.

810
00:40:50,239 --> 00:40:53,880
Speaker 6: Bloomberg News space reporter Lauren Grush here with more. Lauren,

811
00:40:54,320 --> 00:40:56,760
Speaker 6: it's getting routine, But tell us about this mission.

812
00:40:57,719 --> 00:41:01,880
Speaker 13: Yes, speaking of routine, it was the seventh operational CREWD

813
00:41:01,960 --> 00:41:05,600
Speaker 13: flight for SpaceX through NASA's Commercial Crew program. They hold

814
00:41:05,600 --> 00:41:09,399
Speaker 13: an ongoing contract to send astronauts to the International Space

815
00:41:09,400 --> 00:41:12,160
Speaker 13: Station for the Space Agency, and this crew was a

816
00:41:12,680 --> 00:41:17,160
Speaker 13: very international crew. There was a NASA astronaut, a European astronaut,

817
00:41:17,320 --> 00:41:20,279
Speaker 13: a Japanese astronaut, and a Russian cosmonaut. So it really

818
00:41:20,320 --> 00:41:23,080
Speaker 13: just kind of encapsulates what NASA is trying to do

819
00:41:23,200 --> 00:41:26,520
Speaker 13: with these launches by sitting up partner astronauts and NASA astronauts.

820
00:41:27,160 --> 00:41:29,759
Speaker 3: Well, space is going to be doing with all of

821
00:41:29,760 --> 00:41:31,040
Speaker 3: this activity as well, Lauren.

822
00:41:31,960 --> 00:41:34,959
Speaker 13: Well, now that they've launched their latest crew, it's time

823
00:41:35,000 --> 00:41:38,000
Speaker 13: for the recent crew that they launched up roughly six

824
00:41:38,040 --> 00:41:40,040
Speaker 13: months ago to come home. So and it will be

825
00:41:40,120 --> 00:41:42,640
Speaker 13: Crew six will be returning to Earth in their own

826
00:41:42,719 --> 00:41:46,319
Speaker 13: crew Dragon capsule after they greet and make the new

827
00:41:46,440 --> 00:41:48,040
Speaker 13: incoming crew feel right at home.

828
00:41:49,239 --> 00:41:52,440
Speaker 6: Yeah, Lauren, you broke some news Friday. The Starship. The

829
00:41:52,520 --> 00:41:56,760
Speaker 6: explosion in April had big environmental impact. Quickly summarize your reporting.

830
00:41:57,360 --> 00:41:59,200
Speaker 13: Yeah, so there's quite a lot going in space, but

831
00:41:59,320 --> 00:42:02,200
Speaker 13: plenty going on down here on Earth as well. So

832
00:42:02,840 --> 00:42:06,359
Speaker 13: a lot of people might remember the SpaceX Starship test

833
00:42:06,440 --> 00:42:09,960
Speaker 13: launch in April. Well, we did a Freedom of Information

834
00:42:10,000 --> 00:42:14,279
Speaker 13: Act requests looking at, you know, information that we could

835
00:42:14,320 --> 00:42:18,520
Speaker 13: gather between SpaceX officials and the Fish and Wildlife Service

836
00:42:18,640 --> 00:42:22,320
Speaker 13: in the aftermath of that launch, because it was quite

837
00:42:22,719 --> 00:42:26,000
Speaker 13: explosive and it was quite destructive, and we got eleven

838
00:42:26,120 --> 00:42:32,040
Speaker 13: hundred pages of emails and photos giving us a really

839
00:42:32,080 --> 00:42:34,640
Speaker 13: candid look at how those officials with the Fish and

840
00:42:34,680 --> 00:42:38,120
Speaker 13: Wildlife Service, you know, were kind of dog at what

841
00:42:38,239 --> 00:42:39,360
Speaker 13: happened after that flight.

842
00:42:39,840 --> 00:42:44,280
Speaker 3: Almost four ac is a state park burned, Lauren, amazing

843
00:42:44,400 --> 00:42:45,800
Speaker 3: piece of reporting, the long Grash.

844
00:42:45,840 --> 00:42:47,239
Speaker 5: We thank you that is. Have this edition of Really

845
00:42:47,320 --> 00:42:48,120
Speaker 5: Big Technology Ed.

846
00:42:48,960 --> 00:42:51,840
Speaker 6: Yeah, huge week ahead recap on the podcast wherever you

847
00:42:51,920 --> 00:42:53,840
Speaker 6: get your podcast, This is Bloomberg