1 00:00:02,279 --> 00:00:05,560 Speaker 1: From the heart of where innovation, money and power COLLI 2 00:00:06,400 --> 00:00:10,920 Speaker 1: in Silicon Valley and beyond. This is Bloomberg Technology with 3 00:00:11,000 --> 00:00:27,720 Speaker 1: Emily Jay I'm Emily changing San Francisco, and this is 4 00:00:27,760 --> 00:00:30,760 Speaker 1: Bloomberg Technology. Coming up. In the next hour, Broadcom makes 5 00:00:30,760 --> 00:00:34,000 Speaker 1: it official, striking a deal to buy vm Whare for 6 00:00:34,120 --> 00:00:36,879 Speaker 1: sixty one billion dollars. We will have all the details 7 00:00:36,880 --> 00:00:40,080 Speaker 1: on how one of the tech's biggest deals could reshape 8 00:00:40,120 --> 00:00:44,160 Speaker 1: the cloud and chip industries. Coming up. Plus, I'm joined 9 00:00:44,159 --> 00:00:47,440 Speaker 1: exclusively by Google Cloud CEO Thomas Curia. I'll get his 10 00:00:47,479 --> 00:00:50,239 Speaker 1: thoughts on that Broadcom deal, plus how Google and its 11 00:00:50,240 --> 00:00:55,360 Speaker 1: cloud customers are weathering this market termoil, and how one 12 00:00:55,400 --> 00:00:59,840 Speaker 1: startup raised a new round with all female investors, seventy 13 00:01:00,040 --> 00:01:02,480 Speaker 1: five of them. I'll speak to investor Kara Northman and 14 00:01:02,520 --> 00:01:05,759 Speaker 1: Solve co founder Heather Fernandez about how more companies can 15 00:01:05,880 --> 00:01:08,840 Speaker 1: change the gender balance of their cap tables in one 16 00:01:08,880 --> 00:01:11,880 Speaker 1: fell sweep all of that in a moment, But first 17 00:01:11,920 --> 00:01:13,560 Speaker 1: I want to get a look at the market where 18 00:01:13,560 --> 00:01:17,080 Speaker 1: tech stacks stage to come back at Ludlow here with 19 00:01:17,120 --> 00:01:19,600 Speaker 1: the latest and finally some good news. Yeah, finally we 20 00:01:19,680 --> 00:01:22,360 Speaker 1: saw kind of this broad equity market rally. Tech at 21 00:01:22,360 --> 00:01:23,960 Speaker 1: the heart of it, Retail the heart of it will 22 00:01:24,000 --> 00:01:25,360 Speaker 1: touch on it just the moment. You see then as 23 00:01:25,360 --> 00:01:27,920 Speaker 1: that one hundred up two point eight percent, biggest jump 24 00:01:28,000 --> 00:01:29,920 Speaker 1: for that tech heavy index in a week. It was 25 00:01:29,959 --> 00:01:32,280 Speaker 1: interesting because I was going through the bloomberg. It's the 26 00:01:32,319 --> 00:01:35,040 Speaker 1: first back to back gains. We've seen two days of gains. 27 00:01:35,040 --> 00:01:37,600 Speaker 1: And then as that one hundred in almost four weeks, 28 00:01:37,600 --> 00:01:40,000 Speaker 1: which kind of shows how things have been recently right, 29 00:01:40,200 --> 00:01:42,160 Speaker 1: very much in the red. And you see that across 30 00:01:42,200 --> 00:01:45,319 Speaker 1: the technology sector, semi conductors up, the mega caps. Also, 31 00:01:45,560 --> 00:01:48,040 Speaker 1: if there was an area of pressure or some selling 32 00:01:48,040 --> 00:01:51,040 Speaker 1: across financial markets, it was in old coins. You see 33 00:01:51,080 --> 00:01:53,440 Speaker 1: Ether on your screen, there's green there because we're going 34 00:01:53,440 --> 00:01:56,360 Speaker 1: into the next day session, but it's at around one thousand, 35 00:01:56,440 --> 00:01:59,200 Speaker 1: eight hundred dollars per token, well below the two thousand 36 00:01:59,240 --> 00:02:02,040 Speaker 1: level that technical and lists are looking for. And come 37 00:02:02,080 --> 00:02:04,760 Speaker 1: with me into my bloombotuminal. Let's call it right now. 38 00:02:04,880 --> 00:02:08,040 Speaker 1: Let's end it right here, because then as that one 39 00:02:08,520 --> 00:02:11,799 Speaker 1: on a weekly basis is in the green, it's Thursday, 40 00:02:12,080 --> 00:02:15,040 Speaker 1: let's just call it because then that way we snap 41 00:02:15,120 --> 00:02:17,960 Speaker 1: seven straight weeks of declines. It looks like we've turned 42 00:02:18,000 --> 00:02:20,160 Speaker 1: a corner. You can't hang your hat on one week, 43 00:02:20,400 --> 00:02:22,680 Speaker 1: but my goodness, do we need some positivity? Do we 44 00:02:22,720 --> 00:02:25,200 Speaker 1: need some green? R up almost four percentage points, and 45 00:02:25,320 --> 00:02:28,360 Speaker 1: that's that one so far this week. Please Friday, don't 46 00:02:28,440 --> 00:02:30,120 Speaker 1: ruin it. I've had enough. A big part of the 47 00:02:30,160 --> 00:02:31,680 Speaker 1: story when you come back to me in the studio 48 00:02:32,080 --> 00:02:35,399 Speaker 1: is earnings and Video actually missing estimates, particularly on the forecast, 49 00:02:35,520 --> 00:02:38,960 Speaker 1: but that stock up five percent. The market sanguine, Macy's 50 00:02:39,000 --> 00:02:44,400 Speaker 1: incredible lots of confidence, upgrading their profit outlook. People still 51 00:02:44,400 --> 00:02:47,359 Speaker 1: want to buy fancy stuff. I love fancy stuff. And 52 00:02:47,639 --> 00:02:49,760 Speaker 1: how do you think all the M and A we're 53 00:02:49,800 --> 00:02:52,240 Speaker 1: seeing this big tech deal, the number of deals we've 54 00:02:52,280 --> 00:02:55,919 Speaker 1: seen in general is a signal that maybe maybe we're 55 00:02:55,919 --> 00:02:58,360 Speaker 1: turning a corner. Well, it's interesting because I joke about 56 00:02:58,360 --> 00:03:00,200 Speaker 1: that chart, but there is a feel good fact write 57 00:03:00,240 --> 00:03:01,760 Speaker 1: a lot of activity, A love M and A. In 58 00:03:01,800 --> 00:03:05,480 Speaker 1: the tech sector, Twitter up six percentage points on Thursday. 59 00:03:05,520 --> 00:03:07,960 Speaker 1: Tests are up almost eight percent. And the big story here, 60 00:03:08,000 --> 00:03:11,000 Speaker 1: of course, is Musque adjusting the financing package for his 61 00:03:11,040 --> 00:03:13,280 Speaker 1: bid to buy the company, getting rid of the margin 62 00:03:13,320 --> 00:03:17,280 Speaker 1: loan component and bring in more equity financing. Some bullishness 63 00:03:17,280 --> 00:03:19,079 Speaker 1: that this deal might happen. Of course, the other big 64 00:03:19,080 --> 00:03:24,360 Speaker 1: story is Broadcom vm Ware massive sixty one billion dollar deal. 65 00:03:24,919 --> 00:03:27,640 Speaker 1: Bloomberg scoop we refers to report that they were in talks. 66 00:03:27,800 --> 00:03:31,680 Speaker 1: We got official confirmation on Thursday. What does this mean 67 00:03:31,760 --> 00:03:33,679 Speaker 1: for the company? What does this mean for this health 68 00:03:33,720 --> 00:03:37,720 Speaker 1: of the technology sector broadly? It's a really interesting timing. Indeed, 69 00:03:37,880 --> 00:03:39,680 Speaker 1: Ed Ludlow, thank you. I want to stick with that 70 00:03:39,720 --> 00:03:42,680 Speaker 1: Broadcom deal for vm Ware now and bringing angel as 71 00:03:42,680 --> 00:03:44,360 Speaker 1: you know of cf A as well as our very 72 00:03:44,360 --> 00:03:48,120 Speaker 1: own Leanna Baker, Leona, your team broke the news of 73 00:03:48,200 --> 00:03:52,120 Speaker 1: this deal. Here we are officially being announced. Talk to 74 00:03:52,200 --> 00:03:54,160 Speaker 1: us about the nuts and bolts, the new things that 75 00:03:54,200 --> 00:03:56,760 Speaker 1: we know now that maybe we didn't know earlier this week. Sure, 76 00:03:56,840 --> 00:03:59,360 Speaker 1: so we saw the exact price of the deal, although 77 00:03:59,360 --> 00:04:02,000 Speaker 1: it does key sort of fluctuating because it's fifty percent 78 00:04:02,120 --> 00:04:05,600 Speaker 1: cash and fifty percent stock, so it'll change day by day. 79 00:04:05,640 --> 00:04:07,800 Speaker 1: But we did see that it's about sixty one billion, 80 00:04:08,320 --> 00:04:10,560 Speaker 1: which is a pretty big premium for vm Ware, but 81 00:04:10,640 --> 00:04:12,360 Speaker 1: maybe not as high as it would have been had 82 00:04:12,360 --> 00:04:15,560 Speaker 1: it not been for this text sell off. Another interesting 83 00:04:15,920 --> 00:04:18,720 Speaker 1: angle on the deal is that vm Ware can solicit 84 00:04:18,760 --> 00:04:21,919 Speaker 1: other offers. So we're gonna be monitoring whether there's a 85 00:04:21,920 --> 00:04:24,760 Speaker 1: bidding war and who else could emerge because they have 86 00:04:24,839 --> 00:04:28,360 Speaker 1: forty days to potentially find a new buyer. Angelo, are 87 00:04:28,400 --> 00:04:30,520 Speaker 1: you thinking there could be a bidding war here? Are 88 00:04:30,520 --> 00:04:34,000 Speaker 1: there other suitors out there? I mean, were likely others 89 00:04:34,040 --> 00:04:36,680 Speaker 1: that might pick up the phone and enquire about it. 90 00:04:36,720 --> 00:04:39,159 Speaker 1: But to be honest with you, as far as you know, 91 00:04:39,200 --> 00:04:42,600 Speaker 1: the terms of this deal is concerned the price here. Um. 92 00:04:42,600 --> 00:04:45,200 Speaker 1: I actually think it's a very compelling author out there 93 00:04:45,320 --> 00:04:47,680 Speaker 1: for more vm Ware investors. And you know, at the 94 00:04:47,720 --> 00:04:49,400 Speaker 1: end of the day, I do think that fell kind 95 00:04:49,400 --> 00:04:54,120 Speaker 1: of go through, um, you know, via the hands of Broadcom. Leanna, 96 00:04:54,160 --> 00:04:56,480 Speaker 1: What do we know about how Broadcom intends to run 97 00:04:56,920 --> 00:05:00,680 Speaker 1: vm ware? Will it stay independent, Which of broadcast services 98 00:05:00,760 --> 00:05:04,680 Speaker 1: will they emphasize, which might be de emphasized. So I 99 00:05:04,720 --> 00:05:08,560 Speaker 1: interviewed the Broadcom executive Tom Krause today, who helped engineer 100 00:05:08,640 --> 00:05:12,160 Speaker 1: the deal, and he mentioned that they're going to rename 101 00:05:12,240 --> 00:05:15,479 Speaker 1: the whole software division of Broadcom vm Ware. So I 102 00:05:15,520 --> 00:05:17,440 Speaker 1: think vm Ware almost is sort of going to run 103 00:05:17,480 --> 00:05:21,159 Speaker 1: the rest of Broadcom's software. So we'll have to see, 104 00:05:21,279 --> 00:05:23,400 Speaker 1: but it may take a year for the deal to close, 105 00:05:23,400 --> 00:05:25,839 Speaker 1: so we won't see anything just yet. But Broadcom does 106 00:05:25,920 --> 00:05:29,119 Speaker 1: like to keep its franchises intact. I'm sure they'll try 107 00:05:29,440 --> 00:05:32,240 Speaker 1: to you know, raise margins, but I would expect that 108 00:05:32,279 --> 00:05:36,400 Speaker 1: not a lot will change once the deal closes. So Angelo, 109 00:05:36,560 --> 00:05:41,080 Speaker 1: how optim how competitive do you think a software portfolio 110 00:05:41,200 --> 00:05:45,599 Speaker 1: within Broadcom under this VM where Umbrella will actually be? 111 00:05:47,720 --> 00:05:49,720 Speaker 1: You know that I think Yale Hawk has done an 112 00:05:49,720 --> 00:05:53,880 Speaker 1: absolutely fantastic job here, um kind of transitioning the company 113 00:05:53,920 --> 00:05:57,200 Speaker 1: around into one that's also definitely sold by driven and 114 00:05:57,240 --> 00:05:58,800 Speaker 1: I think this really is going to kind of be 115 00:05:59,360 --> 00:06:02,279 Speaker 1: that crowned the world for their software business. That really 116 00:06:02,320 --> 00:06:05,120 Speaker 1: doubles the size of that business, right, so it gets 117 00:06:05,160 --> 00:06:07,920 Speaker 1: them to nearly half of their revenue base there, um, 118 00:06:07,960 --> 00:06:10,440 Speaker 1: you know, was the run rate was about a sales 119 00:06:10,480 --> 00:06:12,359 Speaker 1: so at the end of the day, and you know, 120 00:06:12,400 --> 00:06:15,960 Speaker 1: I think this definitely kind of um significantly improves the 121 00:06:16,080 --> 00:06:19,800 Speaker 1: growth profile of that software business, which is extremely important. 122 00:06:19,880 --> 00:06:21,920 Speaker 1: This was a business that was kind of growing very 123 00:06:21,960 --> 00:06:24,000 Speaker 1: low single digit pace. When you kind of look at 124 00:06:24,000 --> 00:06:26,400 Speaker 1: somebody assets they've acquired a lot of you know, a 125 00:06:26,440 --> 00:06:28,800 Speaker 1: lot of those acquired assets was really kind of just 126 00:06:29,120 --> 00:06:31,640 Speaker 1: you know, from a free cash flow potential, um, just 127 00:06:31,720 --> 00:06:34,320 Speaker 1: improve the cash flow generation of that company. What vm 128 00:06:34,360 --> 00:06:37,479 Speaker 1: Ware does here is it really kind of catapults at 129 00:06:37,560 --> 00:06:41,279 Speaker 1: least the the growth potential within that software business towards 130 00:06:41,360 --> 00:06:44,719 Speaker 1: one that's more kind of mid single digit range, So 131 00:06:45,160 --> 00:06:48,760 Speaker 1: definitely more compelling I think long term for that software business. 132 00:06:48,839 --> 00:06:53,320 Speaker 1: Within Broadcom Leana, we were looking at a chart of 133 00:06:53,520 --> 00:06:56,360 Speaker 1: the big tech deals that have been done in the 134 00:06:56,440 --> 00:06:58,919 Speaker 1: last few months, going all the way back to Microsoft 135 00:06:59,200 --> 00:07:03,440 Speaker 1: and Activist, and are you expecting more big deals this year? 136 00:07:03,560 --> 00:07:06,559 Speaker 1: Are are we moving into an environment you know, given 137 00:07:06,560 --> 00:07:09,480 Speaker 1: what we're seeing in the markets, given valuations coming down, 138 00:07:09,600 --> 00:07:14,200 Speaker 1: given potentially companies looking for a safe exit, are are 139 00:07:14,200 --> 00:07:17,280 Speaker 1: we moving into a time of big time m and A. Well, 140 00:07:17,280 --> 00:07:19,800 Speaker 1: the tech bankers I talked to would love to say, sure, 141 00:07:19,840 --> 00:07:22,920 Speaker 1: there's gonna be big deals and deals to get more deals, 142 00:07:23,200 --> 00:07:25,600 Speaker 1: but you have to understand that Broadcom is a very 143 00:07:25,680 --> 00:07:29,720 Speaker 1: unique animal. They've been searching for a big elephant acquisition 144 00:07:29,840 --> 00:07:33,160 Speaker 1: for years. They hadn't done once since, So that's a 145 00:07:33,200 --> 00:07:36,600 Speaker 1: company that really likes doing deals. And I wouldn't necessarily 146 00:07:36,640 --> 00:07:39,680 Speaker 1: say that Broadcom's competitors are suddenly going to follow suit. 147 00:07:39,920 --> 00:07:42,400 Speaker 1: But it is interesting that the tech sector has been 148 00:07:42,440 --> 00:07:44,320 Speaker 1: one of the bright spots of the M and A market, 149 00:07:44,320 --> 00:07:48,120 Speaker 1: which is down year over year. So software companies especially 150 00:07:48,160 --> 00:07:50,360 Speaker 1: are very resilient. So I'd expect we're going to see 151 00:07:50,720 --> 00:07:53,000 Speaker 1: probably some more big deals this year, which will keep 152 00:07:53,040 --> 00:07:58,320 Speaker 1: me busy well. And Broadcom did want to buy Qualcom 153 00:07:58,360 --> 00:08:02,320 Speaker 1: a few years back, it didn't happen under the Trump administration. Angelo, 154 00:08:02,480 --> 00:08:06,679 Speaker 1: are you expecting any regulatory pushback here? I mean, listen, 155 00:08:06,680 --> 00:08:08,840 Speaker 1: I think as far as this deal is concerned, the 156 00:08:08,840 --> 00:08:11,080 Speaker 1: stuff we're gonna get looked at. I mean, additionally, if 157 00:08:11,080 --> 00:08:12,520 Speaker 1: you would have kind of asked me, I'd say this 158 00:08:12,720 --> 00:08:16,080 Speaker 1: very little little overlap between kind of you know, Broadcom 159 00:08:16,280 --> 00:08:18,680 Speaker 1: and vm ware here. But at the end of the day, 160 00:08:18,720 --> 00:08:22,880 Speaker 1: I mean clearly both companies operating significantly within UM you know, 161 00:08:22,880 --> 00:08:26,400 Speaker 1: the data center you know group, and as a result, 162 00:08:26,800 --> 00:08:29,880 Speaker 1: UM there definitely could kind of be UM some concern 163 00:08:29,960 --> 00:08:33,520 Speaker 1: with how Broadcom operates kind of that VM where business 164 00:08:34,000 --> 00:08:37,040 Speaker 1: along with its chip side business chip business as well 165 00:08:37,080 --> 00:08:39,760 Speaker 1: as you know, Listen, I think I just to the day, Um, 166 00:08:39,800 --> 00:08:42,800 Speaker 1: there's definitely geopolitical pressures going on out there. Someone w 167 00:08:42,920 --> 00:08:46,199 Speaker 1: we started thinking about getting the necessary and regulatory approvals 168 00:08:46,400 --> 00:08:50,080 Speaker 1: across search of certain regions like a China. Um, I'd imagine, 169 00:08:50,320 --> 00:08:52,520 Speaker 1: you know, a region like that probably will drag their 170 00:08:52,520 --> 00:08:54,840 Speaker 1: feet similar to what they've done in other deals. So 171 00:08:54,880 --> 00:08:57,200 Speaker 1: I know Broadcome is looking for a deal to kind 172 00:08:57,200 --> 00:08:59,920 Speaker 1: of get you know, to get done by the undeficial twenties. 173 00:09:00,200 --> 00:09:02,640 Speaker 1: I wouldn't be surprised if that kind of drags further 174 00:09:02,679 --> 00:09:06,520 Speaker 1: than that, uh, Leanna or what are your Broadcom sources 175 00:09:06,520 --> 00:09:09,360 Speaker 1: saying about whether Hawk Tan will be doing more deals 176 00:09:09,440 --> 00:09:11,120 Speaker 1: or is this it for a while? It's a big one, 177 00:09:11,280 --> 00:09:14,079 Speaker 1: So I would say, as Angelo mentioned, there's a lot 178 00:09:14,080 --> 00:09:16,400 Speaker 1: of regulatory bodies that have to weigh in on this, 179 00:09:16,520 --> 00:09:19,080 Speaker 1: So I don't think Tan wants to you know, muddy 180 00:09:19,120 --> 00:09:21,679 Speaker 1: the waters with more deals. Uh. They're really going to 181 00:09:21,760 --> 00:09:24,439 Speaker 1: be focused on getting this one through and whatever it takes. 182 00:09:24,480 --> 00:09:27,880 Speaker 1: So expect Broadcom not to do much except focus on 183 00:09:27,880 --> 00:09:29,800 Speaker 1: this and then integrate it. So it could be a 184 00:09:29,840 --> 00:09:34,640 Speaker 1: while before they do anything that's big. And Angelo, well, Bradley, 185 00:09:34,720 --> 00:09:37,280 Speaker 1: how do I think this deal will actually impact the 186 00:09:37,840 --> 00:09:41,400 Speaker 1: potentially change the cloud market? Will it make much of 187 00:09:41,400 --> 00:09:45,079 Speaker 1: a change? You know, I don't know if it if 188 00:09:45,080 --> 00:09:47,200 Speaker 1: it changes things, much. I think it just it just 189 00:09:47,240 --> 00:09:49,240 Speaker 1: gives the broadcom a lot work power. At the end 190 00:09:49,240 --> 00:09:50,880 Speaker 1: of the day, I think it gives them the ability 191 00:09:50,920 --> 00:09:52,920 Speaker 1: to kind of leverage a wheel their power or a 192 00:09:52,960 --> 00:09:58,000 Speaker 1: lot more than maybe some of their peers or competitors 193 00:09:58,000 --> 00:10:01,080 Speaker 1: out there want them to. And you know, whether or not, 194 00:10:01,440 --> 00:10:04,160 Speaker 1: you know, that ends up kind of being a sticking 195 00:10:04,160 --> 00:10:06,079 Speaker 1: point when they kind of have to kind of get 196 00:10:06,120 --> 00:10:09,160 Speaker 1: the regular necessary regulatory approvals, I think remains to be seen. 197 00:10:09,480 --> 00:10:11,440 Speaker 1: But at the end of the day, I mean, you 198 00:10:11,440 --> 00:10:13,480 Speaker 1: couldn't have an impact. Yes, so it like we will 199 00:10:14,720 --> 00:10:18,680 Speaker 1: angelous you know, cfr right, Leanna Baker who helped break 200 00:10:18,840 --> 00:10:21,719 Speaker 1: this story earlier this weekly on a great job. Thank you. 201 00:10:30,880 --> 00:10:34,280 Speaker 1: With inflation putting pressure on just about everyone, Apple is 202 00:10:34,360 --> 00:10:37,480 Speaker 1: raising salaries for workers across the US by ten percent, 203 00:10:37,960 --> 00:10:39,800 Speaker 1: also in the midst of a type labor market joining 204 00:10:39,880 --> 00:10:42,880 Speaker 1: US now. Bloomberg's Mark German, who of course covers Apples, 205 00:10:42,960 --> 00:10:48,160 Speaker 1: So Apple raising salaries for corporate and retail employees, right, Mark, Yes, 206 00:10:48,240 --> 00:10:51,920 Speaker 1: So that's right in the face of inflation other pressures globally. 207 00:10:52,640 --> 00:10:54,840 Speaker 1: Obviously in the face of unionization when it comes to 208 00:10:54,840 --> 00:10:57,439 Speaker 1: retail employees, Apple is doing a few things. Let's start 209 00:10:57,480 --> 00:11:02,600 Speaker 1: with retail. One, they're raising the minimum salary for hourly workers. 210 00:11:02,640 --> 00:11:05,320 Speaker 1: That's for retail, that's for Apple Care other hourly workers 211 00:11:05,600 --> 00:11:08,199 Speaker 1: from twenty dollars per hour to twenty two dollars per hour. 212 00:11:08,480 --> 00:11:11,840 Speaker 1: Now that's ten from last year, that twenty, and it's 213 00:11:11,960 --> 00:11:16,600 Speaker 1: closer to the company says since in terms of corporate 214 00:11:16,600 --> 00:11:19,800 Speaker 1: and more generally across Apple, they're raising their overall compensation 215 00:11:19,840 --> 00:11:23,640 Speaker 1: budget for this year. So that's gonna result in some 216 00:11:24,080 --> 00:11:27,680 Speaker 1: salary increases based salary increases UH in the US and 217 00:11:27,760 --> 00:11:31,400 Speaker 1: globally for salaried employees, not hourly employees. And they're also 218 00:11:31,480 --> 00:11:34,440 Speaker 1: bringing up raises. Typically those are done around September. The 219 00:11:34,440 --> 00:11:36,680 Speaker 1: company told employees are going to bring that up to 220 00:11:36,800 --> 00:11:40,240 Speaker 1: around July now for both corporate some corporate teams as 221 00:11:40,280 --> 00:11:44,560 Speaker 1: well as the hourly workers. Meantime, you're also reporting that 222 00:11:44,640 --> 00:11:48,640 Speaker 1: Apple is planning to keep iPhone production flat in part 223 00:11:48,720 --> 00:11:52,679 Speaker 1: because of all of these macroeconomic headwinds, the pressure on consumers. 224 00:11:52,679 --> 00:11:55,520 Speaker 1: What exactly do we know? Yeah, there's two ways to 225 00:11:55,559 --> 00:11:57,720 Speaker 1: really look at this, right, there's the positive and there's 226 00:11:57,760 --> 00:12:00,360 Speaker 1: a negative. Let's start with the positive, right. The positive 227 00:12:00,480 --> 00:12:03,439 Speaker 1: is that the overall smartphone market led by Android is 228 00:12:03,559 --> 00:12:05,600 Speaker 1: not a very good spot right now. Right, You're seeing 229 00:12:05,600 --> 00:12:09,079 Speaker 1: those companies do job cuts and hiring slowdowns, and you're 230 00:12:09,080 --> 00:12:12,360 Speaker 1: seeing people buy Android phones to smaller degrees and they 231 00:12:12,360 --> 00:12:14,319 Speaker 1: were in previous years. Right. A lot of that has 232 00:12:14,360 --> 00:12:17,800 Speaker 1: to do with the inflationary pressure, the war in Ukraine, 233 00:12:17,800 --> 00:12:21,080 Speaker 1: and other factors globally, right, And so Apple's ability to 234 00:12:21,160 --> 00:12:25,400 Speaker 1: keep units flat from two in the face of a, 235 00:12:25,600 --> 00:12:28,800 Speaker 1: you know, a larger slowdown in the smartphone industry, obviously, 236 00:12:29,120 --> 00:12:31,199 Speaker 1: that's a good thing for Apple that they're not guiding 237 00:12:31,240 --> 00:12:33,680 Speaker 1: down in terms of their union output. Now, on the negative, 238 00:12:33,920 --> 00:12:36,640 Speaker 1: Apple has a major iPhone upgrade plan for this year. 239 00:12:36,679 --> 00:12:40,040 Speaker 1: That's the iPhone four teen. It'll look mostly similar to 240 00:12:40,080 --> 00:12:41,920 Speaker 1: the iPhone thirteen, but it's a much bigger update than 241 00:12:41,920 --> 00:12:44,520 Speaker 1: the iPhone thirteen. What's the iPhone twelve. So Apple is 242 00:12:44,559 --> 00:12:46,640 Speaker 1: not going to be increasing its units even though they 243 00:12:46,640 --> 00:12:51,160 Speaker 1: have this bigger handset update than they did last year. Meantime, 244 00:12:51,200 --> 00:12:53,240 Speaker 1: let's talk about what else Apple has to come this year. 245 00:12:53,440 --> 00:12:56,120 Speaker 1: WWDC now coming up in a couple of weeks. The 246 00:12:56,160 --> 00:12:59,280 Speaker 1: official invitations have gone out. It's gonna be Christmas in 247 00:13:00,440 --> 00:13:03,480 Speaker 1: they say for developers, What are you expecting to happen 248 00:13:03,520 --> 00:13:06,360 Speaker 1: at this event? Yeah, so WWDC, this is going to 249 00:13:06,480 --> 00:13:09,280 Speaker 1: be a pretty significant one. You're gonna see a pretty 250 00:13:09,320 --> 00:13:13,600 Speaker 1: large update uh to iOS with iOS sixteen. You're gonna 251 00:13:13,640 --> 00:13:16,160 Speaker 1: see changes and new apps and new designs for some 252 00:13:16,200 --> 00:13:19,800 Speaker 1: apps across the board. You're gonna see big multitasking improvements 253 00:13:19,800 --> 00:13:22,880 Speaker 1: for the iPad. You're gonna see some new audio messaging features. 254 00:13:23,360 --> 00:13:25,559 Speaker 1: You're gonna see a new lock screen for the iPhone, 255 00:13:25,760 --> 00:13:28,120 Speaker 1: and you're gonna see major updates to health on the 256 00:13:28,120 --> 00:13:31,120 Speaker 1: iPhone as well as the Apple Watch. You're gonna see 257 00:13:31,120 --> 00:13:35,200 Speaker 1: some smart home compatibility improvements for the Apple TV UH 258 00:13:35,200 --> 00:13:37,559 Speaker 1: and the Home Pod. Like I mentioned, the iPad is 259 00:13:37,559 --> 00:13:39,800 Speaker 1: gonna get a pretty big update uh, and the Mac 260 00:13:39,880 --> 00:13:41,480 Speaker 1: is going to get a little bit more flavor from 261 00:13:41,520 --> 00:13:44,559 Speaker 1: iOS and the iPhone interface as well. So a lot 262 00:13:44,600 --> 00:13:47,320 Speaker 1: to look forward to there. I don't believe you're gonna 263 00:13:47,320 --> 00:13:50,600 Speaker 1: see a full blown unveiling of the Apple Mixed reality headset. 264 00:13:50,640 --> 00:13:53,719 Speaker 1: That's probably going to come later, but obviously augmented in 265 00:13:53,800 --> 00:13:56,280 Speaker 1: virtual reality is gonna be on the minds of lots 266 00:13:56,280 --> 00:13:58,880 Speaker 1: of developers at this year's conference, and of course in 267 00:13:58,920 --> 00:14:01,599 Speaker 1: the future. When you say later, how much later? Is 268 00:14:01,640 --> 00:14:04,079 Speaker 1: that something we could see this year? You know, I 269 00:14:04,320 --> 00:14:06,760 Speaker 1: believe the headset. I believe it's possible we could be 270 00:14:06,800 --> 00:14:09,120 Speaker 1: doing one of these shows a year from now and 271 00:14:09,120 --> 00:14:11,920 Speaker 1: I could have my headset on. Obviously I would look ridiculous, 272 00:14:11,960 --> 00:14:13,559 Speaker 1: But what I mean to say is I think it 273 00:14:13,559 --> 00:14:17,120 Speaker 1: will be available by this time next year. Huh, Okay. 274 00:14:17,640 --> 00:14:20,280 Speaker 1: And what happens come September? You know, obviously w W 275 00:14:20,400 --> 00:14:23,720 Speaker 1: dcs typically where we see uh, you know, the unveiling 276 00:14:23,760 --> 00:14:26,920 Speaker 1: of Apple's next generation of software. September is where we 277 00:14:26,960 --> 00:14:29,720 Speaker 1: see the next generation of hardware. What are we going 278 00:14:29,760 --> 00:14:32,480 Speaker 1: to see this September? Yeah, I mean, I think the 279 00:14:32,520 --> 00:14:35,600 Speaker 1: pattern for this September and the fall launches this year 280 00:14:35,960 --> 00:14:37,880 Speaker 1: is going to probably be quite similar to what you've 281 00:14:37,880 --> 00:14:40,600 Speaker 1: seen from Apple, uh in the fall launch periods in 282 00:14:40,600 --> 00:14:43,920 Speaker 1: previous years. So you could imagine that the iPhone fourteen, 283 00:14:44,200 --> 00:14:45,920 Speaker 1: in the new version of the Apple Watch will be 284 00:14:46,000 --> 00:14:49,800 Speaker 1: unveiled in September. I think the Apple Watch actually, interestingly, 285 00:14:49,960 --> 00:14:52,240 Speaker 1: is going to be one of the bigger new pieces 286 00:14:52,280 --> 00:14:54,480 Speaker 1: of tex from Apple this year for the first time. 287 00:14:54,520 --> 00:14:56,920 Speaker 1: There's gonna be three new models, right, so a lot 288 00:14:56,960 --> 00:14:58,440 Speaker 1: to look forward to if you're an Apple Watch fan 289 00:14:58,480 --> 00:15:02,840 Speaker 1: as well. Mark German for us there, Thanks Mark as always. 290 00:15:03,440 --> 00:15:06,640 Speaker 1: Coming up, Google Cloud CEO Thomas Currian with me next, 291 00:15:07,000 --> 00:15:25,400 Speaker 1: Mrs Bloomberg. In the midst of a massive market downturn, 292 00:15:25,480 --> 00:15:28,920 Speaker 1: Google cloud numbers were array of sunshine in Alphabet's latest 293 00:15:28,920 --> 00:15:32,680 Speaker 1: earnings results. Google's cloud business growing in the quarter, though 294 00:15:32,680 --> 00:15:35,840 Speaker 1: Google is still a distant third to a WS and 295 00:15:35,880 --> 00:15:40,240 Speaker 1: Microsoft's Azure in the cloud infrastructure market. Joining me now 296 00:15:40,280 --> 00:15:42,480 Speaker 1: to talk more about how Google will continue to scale 297 00:15:42,520 --> 00:15:45,960 Speaker 1: Thomas curriean CEO of Google Cloud. Thomas, great to have 298 00:15:46,040 --> 00:15:48,920 Speaker 1: you back with us. So I'm so curious what your 299 00:15:48,920 --> 00:15:51,920 Speaker 1: outlook is on this market turmoil and what you're seeing 300 00:15:51,920 --> 00:15:54,920 Speaker 1: in terms of demand. Are you seeing any signs of 301 00:15:54,960 --> 00:15:59,480 Speaker 1: a slowdown in spending. We're seeing that the market is 302 00:15:59,680 --> 00:16:02,120 Speaker 1: entering all it has some volatility in different parts of 303 00:16:02,120 --> 00:16:06,760 Speaker 1: the world, but technology is seen as helping organizations, you know, 304 00:16:06,840 --> 00:16:11,600 Speaker 1: address supply change shortages of customers better get online digitally, 305 00:16:11,640 --> 00:16:14,760 Speaker 1: and so demand for cloud remains very strong for us. 306 00:16:16,000 --> 00:16:18,480 Speaker 1: What's I take on this Broadcom vm Ware deal and 307 00:16:18,520 --> 00:16:22,480 Speaker 1: how will it change or potentially reshape the cloud landscape. 308 00:16:23,800 --> 00:16:27,680 Speaker 1: Broad Common VMware have both partners of Google, and we're 309 00:16:27,920 --> 00:16:31,120 Speaker 1: you know, we're thrilled that they are looking at moving 310 00:16:31,200 --> 00:16:34,800 Speaker 1: forward together. We think a lot of customers use a 311 00:16:34,880 --> 00:16:38,120 Speaker 1: combination of VMware and Google Cloud together, and we have 312 00:16:38,560 --> 00:16:42,640 Speaker 1: a strong program with them to help people my great 313 00:16:42,760 --> 00:16:45,760 Speaker 1: vm O workloads the cloud. So we look forward to 314 00:16:45,760 --> 00:16:49,960 Speaker 1: continuing of work with both companies. Now, Google Cloud is 315 00:16:50,320 --> 00:16:53,640 Speaker 1: still growing, as I said, but you know it is 316 00:16:53,720 --> 00:16:57,120 Speaker 1: third to AWS and Microsoft and there's a lot of 317 00:16:57,120 --> 00:16:58,720 Speaker 1: work to do to close that gap. What is the 318 00:16:58,800 --> 00:17:01,520 Speaker 1: secret weapon going to be how are you going to 319 00:17:01,560 --> 00:17:04,440 Speaker 1: scale your market share and how long is that going 320 00:17:04,480 --> 00:17:09,240 Speaker 1: to take to see you get closer to those other competitors. Well, 321 00:17:09,280 --> 00:17:12,960 Speaker 1: we are seeing very strong demand for our products, whether 322 00:17:13,040 --> 00:17:16,880 Speaker 1: that is new kinds of infrastructure we're delivering. We are 323 00:17:17,440 --> 00:17:21,480 Speaker 1: now delivering infrastructure capabilities not just to run I T workloads, 324 00:17:21,600 --> 00:17:25,680 Speaker 1: but telecommunications network the announcement we had with Belt Canada 325 00:17:25,760 --> 00:17:29,320 Speaker 1: for example. Uh, we're seeing a lot of interest in 326 00:17:29,359 --> 00:17:35,439 Speaker 1: our cybersecurity tools to protect people's networks and applications and 327 00:17:35,520 --> 00:17:39,040 Speaker 1: data in the cloud. And we're seeing very very strong 328 00:17:39,119 --> 00:17:43,400 Speaker 1: interests for analytics and data products which are being used. Recently, 329 00:17:43,400 --> 00:17:46,840 Speaker 1: there was a case study with data about ups optimizing 330 00:17:46,840 --> 00:17:50,800 Speaker 1: how they were out trucks using our capability for analytics 331 00:17:50,800 --> 00:17:55,440 Speaker 1: and data. So we remain focused on providing great solutions 332 00:17:55,440 --> 00:18:00,439 Speaker 1: with customers, bringing the innovation of Google to customers, and 333 00:18:00,560 --> 00:18:02,720 Speaker 1: doing so at scale around the world. And if you 334 00:18:02,760 --> 00:18:05,360 Speaker 1: do that well, will continue to grow and will continue 335 00:18:05,359 --> 00:18:07,360 Speaker 1: to grow and gain market share as we have been 336 00:18:07,520 --> 00:18:11,120 Speaker 1: these last three years. You recently did a sustainable ability 337 00:18:11,240 --> 00:18:15,600 Speaker 1: survey that found that fifty of executives believe there's hypocrisy 338 00:18:15,640 --> 00:18:20,920 Speaker 1: in their organization on this topic. How so no sustainability 339 00:18:21,560 --> 00:18:24,760 Speaker 1: what we found from the survey Number one, it's a 340 00:18:24,840 --> 00:18:29,440 Speaker 1: super important priority for eighty percent of organizations around the world, 341 00:18:30,680 --> 00:18:36,359 Speaker 1: yet they have difficulty. Thirty five of organizations struggle with 342 00:18:36,480 --> 00:18:40,359 Speaker 1: being able to measure their progress because the data about 343 00:18:40,400 --> 00:18:45,840 Speaker 1: sustainability is not as easily measurable for a variety of reasons. 344 00:18:46,480 --> 00:18:50,080 Speaker 1: And a number of organizations now need help uh to 345 00:18:50,280 --> 00:18:54,360 Speaker 1: progress towards their sustainability objectives, and we at Google are 346 00:18:54,400 --> 00:18:58,680 Speaker 1: helping many organizations do that. Now, how do you make 347 00:18:58,720 --> 00:19:01,840 Speaker 1: sure that hypocrisy doesn't exist at Google? And this has 348 00:19:01,840 --> 00:19:04,600 Speaker 1: been a criticism of of all the big cloud companies. 349 00:19:05,000 --> 00:19:07,880 Speaker 1: For example, you do work with oil and gas companies, 350 00:19:07,920 --> 00:19:10,919 Speaker 1: you do sell your services to those companies. Where do 351 00:19:10,960 --> 00:19:16,120 Speaker 1: you draw the line? We sell our services to all 352 00:19:16,160 --> 00:19:22,159 Speaker 1: in gas companies, not for exploration production, but to the 353 00:19:22,359 --> 00:19:25,679 Speaker 1: environmentally clean or the green parts of these companies for 354 00:19:25,760 --> 00:19:28,960 Speaker 1: work that they're doing. We're also helping all in gas 355 00:19:29,000 --> 00:19:33,320 Speaker 1: companies de carbonized in a variety of different places, and 356 00:19:33,359 --> 00:19:36,800 Speaker 1: we help them with things like distribution, et cetera in 357 00:19:36,840 --> 00:19:39,520 Speaker 1: their retail stores and other things. But we're not doing 358 00:19:39,560 --> 00:19:43,800 Speaker 1: work in the exploration production business. The second we do 359 00:19:44,000 --> 00:19:49,879 Speaker 1: help many many companies in the sustainable energy business, both 360 00:19:49,960 --> 00:19:52,760 Speaker 1: by providing our technology to them as well as being 361 00:19:52,800 --> 00:19:57,240 Speaker 1: the largest procurer of renewable energy in the world. We 362 00:19:57,880 --> 00:20:01,639 Speaker 1: power our data centers and our global network of cloud 363 00:20:01,680 --> 00:20:05,840 Speaker 1: regions using green energy more and more, and we've been 364 00:20:05,920 --> 00:20:09,800 Speaker 1: common neutral for fourteen years now. Even as we provide 365 00:20:09,840 --> 00:20:12,640 Speaker 1: technology for many organizations around the world to run their 366 00:20:12,640 --> 00:20:16,920 Speaker 1: I T in a more renewable way, does Google still 367 00:20:16,960 --> 00:20:21,639 Speaker 1: have that deal with Aramco? For example, we work with 368 00:20:21,680 --> 00:20:24,840 Speaker 1: the Ramicles system integration division, not with the oil and 369 00:20:24,880 --> 00:20:28,520 Speaker 1: gas division, and we work with their system integration division 370 00:20:28,640 --> 00:20:31,440 Speaker 1: to provide our technology to customers in different parts of 371 00:20:31,480 --> 00:20:33,879 Speaker 1: the Middle East. We have said that again and again 372 00:20:33,880 --> 00:20:36,680 Speaker 1: that we don't work with the oil and gas division 373 00:20:36,720 --> 00:20:41,000 Speaker 1: within ARAMCO or with the system integration of for Ramco. Now, 374 00:20:41,200 --> 00:20:43,399 Speaker 1: Google did recently strike a deal to buy mandy And 375 00:20:43,480 --> 00:20:45,880 Speaker 1: for five point four billion dollars. I know the goal 376 00:20:45,960 --> 00:20:49,960 Speaker 1: is that this will help enhance Google's cloud offerings quickly. 377 00:20:50,280 --> 00:20:53,200 Speaker 1: How would you characterize the cyber threat landscape right now, 378 00:20:53,320 --> 00:20:56,440 Speaker 1: especially in the midst of this ongoing war between Russia 379 00:20:56,760 --> 00:21:02,040 Speaker 1: and Ukraine. Cyber threat landscape is changing in the kinds 380 00:21:02,080 --> 00:21:06,280 Speaker 1: of threats, the scope of the threats, the scale of 381 00:21:06,320 --> 00:21:11,600 Speaker 1: the attacks. And we at Google, along with our technology 382 00:21:12,080 --> 00:21:17,679 Speaker 1: how people detect threats, protect against them, and analyze if 383 00:21:17,760 --> 00:21:21,479 Speaker 1: they have been compromised. And we are seeing strong growth 384 00:21:21,520 --> 00:21:25,159 Speaker 1: for our product portfolio. Chronicle simplify a lot of US 385 00:21:25,160 --> 00:21:31,240 Speaker 1: cybersecurity products being adopted by regulated industries like financial institutions, 386 00:21:32,040 --> 00:21:37,880 Speaker 1: commercial customers, critical infrastructure organizations like telecom, networks and utilities, 387 00:21:38,400 --> 00:21:42,280 Speaker 1: as well as by government agencies. Thomas Carrian, CEO of 388 00:21:42,560 --> 00:21:53,879 Speaker 1: Google Cloud, thank you for joining us today. Welcome back 389 00:21:53,880 --> 00:21:57,119 Speaker 1: to Boner Technology. Emily Chang in San Francisco. Well venture 390 00:21:57,119 --> 00:22:00,399 Speaker 1: capital firms like Sequoya and y combinator have been sharing 391 00:22:00,440 --> 00:22:03,919 Speaker 1: their playbooks on how to weather stormy market conditions, and 392 00:22:03,960 --> 00:22:07,040 Speaker 1: as startups begin to focus on the fundamentals once again, 393 00:22:07,080 --> 00:22:11,600 Speaker 1: another key element is ensuring fair representation on their cap tables. 394 00:22:11,800 --> 00:22:14,320 Speaker 1: My next guests found a way to raise their latest 395 00:22:14,400 --> 00:22:18,840 Speaker 1: round from all female investors, and they're here to share 396 00:22:18,880 --> 00:22:21,200 Speaker 1: their secret. I m joined now by Heather Fernandez, the 397 00:22:21,240 --> 00:22:23,960 Speaker 1: CEO and co founder of Solve, as well as Karen Northman, 398 00:22:24,400 --> 00:22:27,520 Speaker 1: managing partner at Upfront Ventures and a founding member of 399 00:22:27,680 --> 00:22:29,720 Speaker 1: All Rays. Karen had they're great to have both of 400 00:22:29,760 --> 00:22:31,960 Speaker 1: you back here on the show. So you managed to 401 00:22:32,000 --> 00:22:33,919 Speaker 1: not just get all women on the cap table in 402 00:22:33,960 --> 00:22:39,400 Speaker 1: this round, but seventy five different women investors. Heather, how 403 00:22:39,400 --> 00:22:41,840 Speaker 1: did you do it? Well, let me tell you a 404 00:22:41,840 --> 00:22:44,439 Speaker 1: bit of this story, Emily. So you know, as you know, 405 00:22:44,560 --> 00:22:47,119 Speaker 1: people talk about fundraising is a very easy thing. As 406 00:22:47,160 --> 00:22:50,159 Speaker 1: every founder knows, it's not. It's stressful. It's arduous. And 407 00:22:50,200 --> 00:22:53,320 Speaker 1: when I completed my seriously financing and followed last year, 408 00:22:53,359 --> 00:22:55,840 Speaker 1: I called my good friend here Northman, frankly from my 409 00:22:55,920 --> 00:22:58,600 Speaker 1: victory lap. In that call, she said to me, for 410 00:22:58,720 --> 00:23:01,720 Speaker 1: twenty years we've been talking about cap table diversity, how 411 00:23:01,760 --> 00:23:04,080 Speaker 1: important it is to bring more women and women of 412 00:23:04,119 --> 00:23:07,879 Speaker 1: color onto cap tables. Let's use this opportunity to make 413 00:23:07,920 --> 00:23:10,879 Speaker 1: some space and figure out a way to really drive 414 00:23:10,960 --> 00:23:13,720 Speaker 1: that in this round for us solve And we made 415 00:23:13,760 --> 00:23:17,040 Speaker 1: it happen, and you made it happen fairly quickly as 416 00:23:17,080 --> 00:23:20,000 Speaker 1: I understand it, right, Carol, I mean, just just give 417 00:23:20,080 --> 00:23:22,480 Speaker 1: us a little more of the how, because you've got 418 00:23:22,520 --> 00:23:26,240 Speaker 1: a lot of venture capital firms out there who say 419 00:23:26,240 --> 00:23:32,840 Speaker 1: they can't find enough talented women to add on as partners. Yeah. No, 420 00:23:33,000 --> 00:23:36,000 Speaker 1: I mean I think what what ended up happening was, Um, 421 00:23:36,520 --> 00:23:39,159 Speaker 1: I think, um, a couple of things. Heather and I 422 00:23:39,200 --> 00:23:41,199 Speaker 1: are fortunate enough to be doing these jobs now for 423 00:23:41,240 --> 00:23:44,440 Speaker 1: twenty years, were much much younger than we look. Are 424 00:23:44,480 --> 00:23:47,120 Speaker 1: older than we look, perhaps I should say, and so 425 00:23:47,800 --> 00:23:51,560 Speaker 1: um we um. We reached into our networks, and our 426 00:23:51,600 --> 00:23:55,000 Speaker 1: networks are specific people in some specific stages of their careers. 427 00:23:55,080 --> 00:23:58,320 Speaker 1: So we reached out, um to a number of senior 428 00:23:58,320 --> 00:24:01,560 Speaker 1: women in tech and actresses, people that we knew were 429 00:24:01,600 --> 00:24:03,880 Speaker 1: active angel investors. But then we took it a step 430 00:24:03,920 --> 00:24:06,040 Speaker 1: further and we said, listen, we really want to use 431 00:24:06,080 --> 00:24:08,040 Speaker 1: this as an opportunity where there's a lot of demand. 432 00:24:08,080 --> 00:24:10,280 Speaker 1: Had there had many term sheets. It was it's a 433 00:24:10,320 --> 00:24:13,120 Speaker 1: company SolV is serving one in five Americans now, which 434 00:24:13,160 --> 00:24:16,320 Speaker 1: is pretty awesome. UM to say, reach out to a 435 00:24:16,320 --> 00:24:18,760 Speaker 1: woman in your network who we may not know ideally 436 00:24:18,800 --> 00:24:20,879 Speaker 1: a woman of color, but a woman who is just 437 00:24:20,920 --> 00:24:23,399 Speaker 1: as talented as you, who is either an angel investing 438 00:24:23,400 --> 00:24:24,879 Speaker 1: and we don't know or wants to get into it, 439 00:24:25,280 --> 00:24:27,520 Speaker 1: and invite them to join. And it had the snowball 440 00:24:27,560 --> 00:24:29,959 Speaker 1: effect in a way. It's um. It's a bit like 441 00:24:30,000 --> 00:24:32,760 Speaker 1: the Freemasons, which is, you know, were groups of men 442 00:24:33,000 --> 00:24:35,600 Speaker 1: in the olden days, or Paul Revere would yell to 443 00:24:35,640 --> 00:24:37,480 Speaker 1: another group of men, he wasn't just yelling into the 444 00:24:37,480 --> 00:24:40,399 Speaker 1: streets of Boston. UM. And that's how the revolution spread. 445 00:24:40,400 --> 00:24:43,520 Speaker 1: And it's finding these loose connectors, um that brought it 446 00:24:43,560 --> 00:24:45,680 Speaker 1: into others. And one quick example there is a woman 447 00:24:45,720 --> 00:24:49,760 Speaker 1: named Layla Saka whom is a longtime salesforce exact and 448 00:24:49,800 --> 00:24:51,959 Speaker 1: she brought it into the Black Venture Institute and so 449 00:24:52,000 --> 00:24:55,760 Speaker 1: she brought in a terrific group of black black angel 450 00:24:55,840 --> 00:24:58,080 Speaker 1: investors and we had a lot of different examples of that. 451 00:24:59,400 --> 00:25:04,000 Speaker 1: Revolution is a perfect metaphor and good to hear how 452 00:25:04,119 --> 00:25:06,679 Speaker 1: you are leading this one. How there if there's a 453 00:25:06,680 --> 00:25:10,680 Speaker 1: blueprint for other startups, other founders who want to do this, 454 00:25:10,880 --> 00:25:14,520 Speaker 1: what are three simple steps. If maybe you don't have 455 00:25:14,560 --> 00:25:18,760 Speaker 1: a network that goes back twenty years of powerful women, yes, 456 00:25:18,800 --> 00:25:21,720 Speaker 1: I got you. Number one, designed to do it early. 457 00:25:22,320 --> 00:25:24,320 Speaker 1: This is something that for me with the eleventh hour, 458 00:25:24,480 --> 00:25:26,320 Speaker 1: it caused a bit of a scramble and frankly, was 459 00:25:26,359 --> 00:25:30,240 Speaker 1: really intimidating. So one, decide early, align that with your 460 00:25:30,240 --> 00:25:33,439 Speaker 1: board as well as your internal team. Number two, I'm 461 00:25:33,480 --> 00:25:36,359 Speaker 1: gonna say tap your network. We have a twenty year 462 00:25:36,400 --> 00:25:41,200 Speaker 1: long relationship, but every founder has investors, you have professors, 463 00:25:41,480 --> 00:25:44,959 Speaker 1: you have people in your world who are connected to others, 464 00:25:45,240 --> 00:25:48,199 Speaker 1: and it was really managing that network that enabled us 465 00:25:48,240 --> 00:25:51,520 Speaker 1: to do us so quickly. Third, find a back end partner. 466 00:25:52,240 --> 00:25:54,600 Speaker 1: We were used a family office. You can use Angelist 467 00:25:54,680 --> 00:25:56,600 Speaker 1: or Carter. And number four this is the final one 468 00:25:57,040 --> 00:25:59,760 Speaker 1: set guidelines in our world. Because we were trying to 469 00:25:59,800 --> 00:26:03,520 Speaker 1: bring and new investors into growth investing, we reduced the 470 00:26:03,560 --> 00:26:05,800 Speaker 1: minimum down to zero, but we decided we would do 471 00:26:05,880 --> 00:26:08,800 Speaker 1: it over a constrained timetable and that ended up enabling 472 00:26:08,880 --> 00:26:11,640 Speaker 1: us to meet our goals and do it very quickly. Okay, 473 00:26:11,960 --> 00:26:13,439 Speaker 1: Now I want to talk a little bit about the 474 00:26:13,440 --> 00:26:18,160 Speaker 1: market environment, Kara, because obviously there's public market turmoil. Startups 475 00:26:18,160 --> 00:26:20,320 Speaker 1: are having trouble raising new rounds right now. We're seeing 476 00:26:20,400 --> 00:26:25,840 Speaker 1: hiring freezes and even layoffs. You know, in times of turmoil, 477 00:26:25,920 --> 00:26:28,840 Speaker 1: often women take a step back. Investors invest in what 478 00:26:28,880 --> 00:26:31,520 Speaker 1: they know and they understand, rather than taking that risk. 479 00:26:31,560 --> 00:26:36,119 Speaker 1: Are you concerned that could happen now? Well? Yeah, so 480 00:26:36,119 --> 00:26:38,320 Speaker 1: I am concerned that can happen. And I think, you know, 481 00:26:38,359 --> 00:26:41,440 Speaker 1: the message to put out there is that, um uh, 482 00:26:41,520 --> 00:26:43,119 Speaker 1: now is the best time to take risk in a 483 00:26:43,160 --> 00:26:45,520 Speaker 1: way that is good for you as an individual. But 484 00:26:45,560 --> 00:26:49,080 Speaker 1: we're so emotional about risk, and actually, um the great 485 00:26:49,080 --> 00:26:52,440 Speaker 1: thing about venture uh is that you know, we're we're 486 00:26:52,480 --> 00:26:55,159 Speaker 1: building the long term trends and the problems we need 487 00:26:55,200 --> 00:26:57,720 Speaker 1: to solve are bigger than ever. And so I think 488 00:26:57,760 --> 00:27:00,560 Speaker 1: it's really important though that each individual really understand their 489 00:27:00,640 --> 00:27:02,600 Speaker 1: risk profile. And if you were going to allocate to 490 00:27:02,680 --> 00:27:05,440 Speaker 1: venture capital, I always say, allocate a certain amount of money, 491 00:27:05,520 --> 00:27:08,120 Speaker 1: whether it's five thousand, ten thousand, a hundred thousand, whatever 492 00:27:08,160 --> 00:27:10,320 Speaker 1: the right amount is for you, and then divide it 493 00:27:10,400 --> 00:27:12,960 Speaker 1: up into five or ten investments UM, and then be 494 00:27:13,000 --> 00:27:15,959 Speaker 1: thoughtful about where you're gonna, you know, place those investments, 495 00:27:15,960 --> 00:27:18,760 Speaker 1: knowing that no one of them may you know, generate 496 00:27:18,800 --> 00:27:22,200 Speaker 1: a return. UM prices are down. Founders who start businesses 497 00:27:22,240 --> 00:27:24,840 Speaker 1: now are deeply convicted and not just doing it because 498 00:27:24,880 --> 00:27:27,840 Speaker 1: they watch some HBO special And so there's never been 499 00:27:27,840 --> 00:27:30,600 Speaker 1: bigger problems to solve, and now is you know, I 500 00:27:30,640 --> 00:27:33,280 Speaker 1: think a huge part of what came out of the 501 00:27:33,320 --> 00:27:36,119 Speaker 1: SOLVESTPV and cannily we did. I had done something just 502 00:27:36,160 --> 00:27:38,160 Speaker 1: like this for Angel City, which is the soccer team 503 00:27:38,160 --> 00:27:40,320 Speaker 1: I had started, which was my first blue print, which 504 00:27:40,320 --> 00:27:42,120 Speaker 1: is why I had the conviction to bring it to Heather. 505 00:27:42,600 --> 00:27:45,919 Speaker 1: Is that now the best time to take the right 506 00:27:46,000 --> 00:27:48,040 Speaker 1: kind of risk with people you trust in things that 507 00:27:48,080 --> 00:27:50,720 Speaker 1: seem very obvious in your high conviction around um. You 508 00:27:50,760 --> 00:27:51,840 Speaker 1: just have to do it in the right way for 509 00:27:51,880 --> 00:27:54,760 Speaker 1: your balance sheet. Thank you for bringing up Angel City 510 00:27:54,800 --> 00:27:56,520 Speaker 1: because that was my next question. And I see the 511 00:27:56,560 --> 00:28:00,719 Speaker 1: soccer ball behind you. US Soccer. US Soccer just reached 512 00:28:00,760 --> 00:28:04,840 Speaker 1: a landmark deal to split pay equally among the women's 513 00:28:04,880 --> 00:28:07,840 Speaker 1: and men's teams. What was the real secret to getting 514 00:28:07,840 --> 00:28:10,560 Speaker 1: that done? And do you think can really be translated 515 00:28:10,760 --> 00:28:14,480 Speaker 1: to other sports when the skeptics are saying, well, in soccer, 516 00:28:14,880 --> 00:28:19,280 Speaker 1: the women do make the money. Yeah. I mean, there's 517 00:28:19,280 --> 00:28:22,080 Speaker 1: a terrific article that came out today on this topic, 518 00:28:22,119 --> 00:28:24,040 Speaker 1: so Joe google it. It's not on Bloomberg. So I'm 519 00:28:24,040 --> 00:28:28,399 Speaker 1: not going to mention. But um uh, that lawsuit that 520 00:28:28,720 --> 00:28:31,480 Speaker 1: you in that case is what got me. I started 521 00:28:31,480 --> 00:28:33,880 Speaker 1: as an activist. Um and working with a woman named 522 00:28:33,880 --> 00:28:37,560 Speaker 1: Becau who led the charge and having extraordinary leadership like 523 00:28:37,640 --> 00:28:39,960 Speaker 1: Heather and Solved. Taking the time to actually build a 524 00:28:40,000 --> 00:28:42,760 Speaker 1: syndicate someone like Beccau, who has been fighting this battle 525 00:28:42,800 --> 00:28:45,280 Speaker 1: as the head of the Players Union for many many 526 00:28:45,320 --> 00:28:48,000 Speaker 1: years behind the scenes is critical. And so for the 527 00:28:48,040 --> 00:28:50,600 Speaker 1: first time, the next woman's World chap is going to 528 00:28:50,720 --> 00:28:53,720 Speaker 1: is negotiating their own broadcast deal and their own sponsorship deal. 529 00:28:53,960 --> 00:28:56,080 Speaker 1: It's gonna be a half a billion dollars on its 530 00:28:56,080 --> 00:28:58,320 Speaker 1: way to a billion dollars. We've never had that, and 531 00:28:58,400 --> 00:29:01,200 Speaker 1: so it's all of this stuff builds on each other. 532 00:29:01,800 --> 00:29:03,920 Speaker 1: Um And I mean, I guess the one thing I'd 533 00:29:03,920 --> 00:29:06,200 Speaker 1: say to tie this back to solve also is that 534 00:29:06,600 --> 00:29:09,440 Speaker 1: you know, my just interest in supporting the pay equity fight, 535 00:29:09,480 --> 00:29:11,719 Speaker 1: which is how Nataliepportman and I first came together as 536 00:29:11,720 --> 00:29:15,720 Speaker 1: activists supporting a union not as not as capitalists, led 537 00:29:15,800 --> 00:29:19,440 Speaker 1: to this capitalist moment with Angel City, which led to Solve. 538 00:29:19,600 --> 00:29:22,280 Speaker 1: And so I think the most important thing is building 539 00:29:22,400 --> 00:29:25,360 Speaker 1: not just building wealth for women, but building those relationships 540 00:29:25,360 --> 00:29:28,000 Speaker 1: and even amongst me and Heather and some of the 541 00:29:28,120 --> 00:29:30,640 Speaker 1: our twenty year relationships. This was the first transaction we 542 00:29:30,680 --> 00:29:32,760 Speaker 1: all did together, and since then we've done many more, 543 00:29:33,080 --> 00:29:35,200 Speaker 1: and we're pulling each other into each other's deals and 544 00:29:35,240 --> 00:29:37,480 Speaker 1: the like. And so I think it is about find 545 00:29:37,600 --> 00:29:41,479 Speaker 1: joy and play and energy amongst your female and diverse 546 00:29:41,560 --> 00:29:44,240 Speaker 1: relationships and then just lean into that energy and hold 547 00:29:44,240 --> 00:29:47,640 Speaker 1: each other accountable and make it a possible side hustle 548 00:29:47,760 --> 00:29:50,160 Speaker 1: and you know, good things will happen. We'll build our 549 00:29:50,200 --> 00:29:55,160 Speaker 1: own Freemason's network. UM. Heather, uh, solid is anything but 550 00:29:55,920 --> 00:29:59,520 Speaker 1: side hustle for you. And I'm so curious how these 551 00:29:59,680 --> 00:30:02,840 Speaker 1: you know, recent downturn and market conditions is impacting you 552 00:30:02,920 --> 00:30:07,360 Speaker 1: and your strategy. We saw you know, doubling of of 553 00:30:07,480 --> 00:30:10,920 Speaker 1: exits last year fifty seven billion dollars and exit value 554 00:30:11,240 --> 00:30:14,240 Speaker 1: UM for public listings. But right now folks are saying 555 00:30:14,280 --> 00:30:16,120 Speaker 1: the I P O window is closed for you know, 556 00:30:16,160 --> 00:30:19,959 Speaker 1: a fast growing venture back startup like yours. You know, 557 00:30:20,040 --> 00:30:23,840 Speaker 1: how are you navigating this time? Yeah? I mean, Emily, 558 00:30:24,240 --> 00:30:27,280 Speaker 1: what we do has never been more relevant. And so 559 00:30:27,320 --> 00:30:30,160 Speaker 1: when I think about our value prop for consumers, help 560 00:30:30,160 --> 00:30:31,960 Speaker 1: me figure out where I should go, when can I 561 00:30:32,000 --> 00:30:34,200 Speaker 1: be seen and how much does it cost? In an 562 00:30:34,240 --> 00:30:38,560 Speaker 1: economic downturn, we are extraordinarily relevant on the provider side 563 00:30:38,600 --> 00:30:42,240 Speaker 1: of what we do help providers, innovative providers deliver a 564 00:30:42,280 --> 00:30:46,640 Speaker 1: more consumer first experience on the heels of COVID, where 565 00:30:46,680 --> 00:30:50,840 Speaker 1: consumers have experienced more digital first healthcare, same day healthcare 566 00:30:51,120 --> 00:30:54,920 Speaker 1: than they ever had previously. So realistically, I am focused 567 00:30:54,960 --> 00:30:58,040 Speaker 1: on the fundamentals and delivering real value both to consumers 568 00:30:58,040 --> 00:31:00,560 Speaker 1: and providers in terms of our growth. And as you 569 00:31:00,640 --> 00:31:03,160 Speaker 1: do that, good things will happen. And we aren't on 570 00:31:03,200 --> 00:31:05,880 Speaker 1: a short term time horizon in order to get to 571 00:31:06,040 --> 00:31:09,000 Speaker 1: UH like what Cure Nortman said the HBO exit. We're 572 00:31:09,000 --> 00:31:11,680 Speaker 1: here to build stinable company that delivers real value in 573 00:31:11,840 --> 00:31:14,000 Speaker 1: R o I and this is a great environment for 574 00:31:14,080 --> 00:31:16,240 Speaker 1: us to be able to do that. How the Fernandez 575 00:31:16,240 --> 00:31:19,280 Speaker 1: CEO and co founder Assault and Karen and Upfront venture 576 00:31:19,320 --> 00:31:21,360 Speaker 1: is so great to have you back here on the show. 577 00:31:21,480 --> 00:31:23,920 Speaker 1: Thanks for sharing some of your secret sauce with us. 578 00:31:36,000 --> 00:31:38,280 Speaker 1: Time now for our crypto report, and it's to see 579 00:31:38,360 --> 00:31:41,320 Speaker 1: a read in the world as alt coins lead the 580 00:31:41,440 --> 00:31:43,680 Speaker 1: route or at Ludlow back here with the latest. What's 581 00:31:43,720 --> 00:31:47,000 Speaker 1: happening with all coins so heavy setting, you know, declines 582 00:31:47,040 --> 00:31:50,560 Speaker 1: in between eleven p sevent a lot of volatility. We're 583 00:31:50,560 --> 00:31:54,680 Speaker 1: talking about Avalanche, Polka Dot Salana, and there's a lot 584 00:31:54,720 --> 00:31:59,000 Speaker 1: of movement away from anything that it's associated or has 585 00:31:59,160 --> 00:32:02,640 Speaker 1: any residents of being assoted with terror. And what's happened 586 00:32:02,680 --> 00:32:05,400 Speaker 1: in the last couple of weeks back that up a 587 00:32:05,400 --> 00:32:07,840 Speaker 1: lot of it, you know, because we've seen, you know, 588 00:32:07,920 --> 00:32:10,480 Speaker 1: some big changes with terror. They're trying to save it, 589 00:32:11,240 --> 00:32:14,400 Speaker 1: trying to save it. So the Terror blockchain and you 590 00:32:14,440 --> 00:32:17,680 Speaker 1: have Terror USD or us T, and the whole point 591 00:32:17,680 --> 00:32:21,360 Speaker 1: of the platform is that allows traders to be nimble, 592 00:32:21,560 --> 00:32:23,960 Speaker 1: to stay within it. It's supposed to be pegged to 593 00:32:23,960 --> 00:32:25,840 Speaker 1: the dollar in that chart that you see on your screen. 594 00:32:26,480 --> 00:32:29,680 Speaker 1: Is that it's just seen a complete collapse. Terror us 595 00:32:29,760 --> 00:32:34,480 Speaker 1: D and also its sister Crypto tooken Lunar. The other 596 00:32:34,480 --> 00:32:36,200 Speaker 1: big point of it was that it was supposed to 597 00:32:36,200 --> 00:32:38,800 Speaker 1: give you a yield, a set interest rate where you'd 598 00:32:38,800 --> 00:32:42,160 Speaker 1: have a really tasty return for keeping your assets within 599 00:32:42,200 --> 00:32:45,440 Speaker 1: the blockchain, and is that's collapsed. What we've seen across 600 00:32:45,480 --> 00:32:48,880 Speaker 1: old coins but also Ethereum and to a certain extent, 601 00:32:48,920 --> 00:32:51,760 Speaker 1: Bitcoin is just bearishness across the market. You know, some 602 00:32:51,880 --> 00:32:55,160 Speaker 1: evidence being the demand for the ethereum block has just 603 00:32:55,240 --> 00:32:58,160 Speaker 1: dropped off, and it shows there's a lot of nervousness 604 00:32:58,200 --> 00:33:03,640 Speaker 1: out there. Why is bitcoin by even differently? Right now? 605 00:33:03,240 --> 00:33:07,040 Speaker 1: All right, Bitcoin has been hovering around twenty nine thousand, 606 00:33:07,080 --> 00:33:11,600 Speaker 1: thousand dollars token for some days, some weeks. There's two theories, right, 607 00:33:11,760 --> 00:33:14,400 Speaker 1: One is that it's like the haven asset within the 608 00:33:14,440 --> 00:33:17,000 Speaker 1: world of crypto that if you're going to move into something, 609 00:33:17,720 --> 00:33:20,000 Speaker 1: and you want to stay within the world of cryptocurrencies, 610 00:33:20,040 --> 00:33:23,000 Speaker 1: you move into Bitcoin. The other problem that we have 611 00:33:23,360 --> 00:33:25,239 Speaker 1: you and I discussed this all the time. It has 612 00:33:25,280 --> 00:33:28,240 Speaker 1: a very high correlation to stocks, and in periods where 613 00:33:28,600 --> 00:33:32,400 Speaker 1: stocks are selling off, the correlation increases. Now stocks have 614 00:33:32,480 --> 00:33:35,520 Speaker 1: stopped selling off, so Bitcoin's kind of stood static and 615 00:33:35,600 --> 00:33:38,120 Speaker 1: treading water at twenty dollars are token. So one are 616 00:33:38,160 --> 00:33:40,440 Speaker 1: the crypto balls waiting for I haven't really heard a 617 00:33:40,480 --> 00:33:43,320 Speaker 1: lot of people saying by now by now by now Yeah, Well, 618 00:33:44,240 --> 00:33:46,600 Speaker 1: we've asked this question before. What is bitcoin? Is it 619 00:33:46,680 --> 00:33:49,320 Speaker 1: an inflation hedge. We're a bit more sanguine on inflation 620 00:33:49,360 --> 00:33:51,400 Speaker 1: at the moments. There's been no big move into a 621 00:33:51,440 --> 00:33:54,360 Speaker 1: bitcoin for that reason. If you look at Inferium, for example, 622 00:33:54,680 --> 00:33:57,520 Speaker 1: there's a lot of technical analysis that it's stuck at 623 00:33:57,560 --> 00:34:01,560 Speaker 1: this kind of token level. It can't go higher. It 624 00:34:01,680 --> 00:34:04,240 Speaker 1: really needs to push beyond two thousand dollars per token, 625 00:34:04,840 --> 00:34:06,880 Speaker 1: as we see on our screen there. That's the severity 626 00:34:06,960 --> 00:34:10,359 Speaker 1: of the kind of plunge we saw Thursday session going through. 627 00:34:10,880 --> 00:34:12,239 Speaker 1: And look, we we kind of paired some of the 628 00:34:12,320 --> 00:34:15,320 Speaker 1: losses that we saw, but there's a lack of direction, 629 00:34:16,160 --> 00:34:19,239 Speaker 1: and they have tried to restart the terror block. They've 630 00:34:19,320 --> 00:34:22,000 Speaker 1: tried to get some life back into this USD pegged 631 00:34:22,280 --> 00:34:24,920 Speaker 1: crypto currency. Not a lot of evidence that it's going 632 00:34:25,040 --> 00:34:26,799 Speaker 1: very well well, and one of our guests last week 633 00:34:26,880 --> 00:34:30,920 Speaker 1: said she expects crypto winter to last at least twelve months, 634 00:34:31,280 --> 00:34:33,800 Speaker 1: maybe eighteen, and it's not going to get back to 635 00:34:33,920 --> 00:34:36,799 Speaker 1: sixty for a while. Yeah, And we had folks from 636 00:34:36,840 --> 00:34:39,839 Speaker 1: Davos telling our co anchors we called it. We told 637 00:34:39,880 --> 00:34:42,840 Speaker 1: you bitcoin would fall from sixty to thirty, It happened, 638 00:34:43,200 --> 00:34:45,680 Speaker 1: and it will go back up in a shorter time frame. 639 00:34:46,080 --> 00:34:48,520 Speaker 1: I think it's a little bit of like, right, where 640 00:34:48,520 --> 00:34:49,920 Speaker 1: are we going? So what are you gonna be watching 641 00:34:50,600 --> 00:34:54,120 Speaker 1: tomorrow and through the weekend, because obviously crypto will continue trading. Yes, 642 00:34:54,239 --> 00:34:55,680 Speaker 1: So this is the problem you and I have. We 643 00:34:55,760 --> 00:34:57,680 Speaker 1: go home on a Friday, thank goodness, and we come 644 00:34:57,719 --> 00:35:01,759 Speaker 1: back on a Monday and it's seven. What's different is 645 00:35:01,800 --> 00:35:04,200 Speaker 1: the psychology of the Asian session Sunday night. You have 646 00:35:04,239 --> 00:35:05,719 Speaker 1: a lot of people that have had the weekend to 647 00:35:05,800 --> 00:35:08,439 Speaker 1: digest it. They get back to their desks in Hong Kong, 648 00:35:08,760 --> 00:35:11,160 Speaker 1: in Singapore, and sometimes when you and I wake up 649 00:35:11,160 --> 00:35:13,680 Speaker 1: on a Monday, they've traded for because of the words 650 00:35:13,719 --> 00:35:16,759 Speaker 1: that have been spoken over the weekend. Remember Krypto seven 651 00:35:16,840 --> 00:35:18,719 Speaker 1: is so the media outlets to cover it. So I 652 00:35:18,800 --> 00:35:21,000 Speaker 1: guess whatever the big thinking is of the weekend, well, 653 00:35:21,080 --> 00:35:23,760 Speaker 1: lucky for us, we get a weekend. Thank you, Ed Ludlow. 654 00:35:24,040 --> 00:35:28,759 Speaker 1: Thanks Okay, Coming up, have the tech bubble first. Many 655 00:35:28,960 --> 00:35:32,840 Speaker 1: are calling the current tech route long overdue a poor holdings. 656 00:35:32,880 --> 00:35:36,480 Speaker 1: Portfolio manager Robert kentwell with us next for his thoughts 657 00:35:36,719 --> 00:36:16,480 Speaker 1: on the market moves now. As our Bloomber Technology Senior 658 00:36:16,560 --> 00:36:19,560 Speaker 1: executive editor Bradstone put it in this week's Big Take, 659 00:36:19,920 --> 00:36:24,480 Speaker 1: years of wildly inflated valuations, crypto flavored pyramid schemes and 660 00:36:24,719 --> 00:36:28,200 Speaker 1: all manner of naked opportunism have led us to the 661 00:36:28,280 --> 00:36:31,760 Speaker 1: tech bust. Of he has such a way with words that, Brad. 662 00:36:32,200 --> 00:36:34,839 Speaker 1: So far this year, the tech heavy SMP five has 663 00:36:34,920 --> 00:36:39,640 Speaker 1: lost just under one five of its value, among the 664 00:36:39,719 --> 00:36:45,040 Speaker 1: worst hit Amazon, Tesla, Meta, and Zoom. But that's just 665 00:36:45,160 --> 00:36:48,279 Speaker 1: the start. So has the tech bubble burst? Let's bring 666 00:36:48,360 --> 00:36:52,120 Speaker 1: in Robert Kentwell, portfolio manager at Upholdings. Robert, what do 667 00:36:52,200 --> 00:36:55,879 Speaker 1: you think has a bubble burst? Well, some air has 668 00:36:56,000 --> 00:36:58,960 Speaker 1: has definitely come out of the balloon, but believe it 669 00:36:59,040 --> 00:37:02,160 Speaker 1: or not, it has fall are from burst companies. There's 670 00:37:02,160 --> 00:37:04,920 Speaker 1: too much cash on balance sheets, there's too much trypowder 671 00:37:04,960 --> 00:37:08,400 Speaker 1: and venture capital. A lot of technology companies have hardly 672 00:37:08,560 --> 00:37:12,240 Speaker 1: tapped debt markets, and so until you really see companies 673 00:37:12,280 --> 00:37:15,759 Speaker 1: extended with short runways, frankly, there's there's there's still a 674 00:37:15,800 --> 00:37:18,359 Speaker 1: little bit of ways to go. But what what's been 675 00:37:18,440 --> 00:37:21,640 Speaker 1: interesting with with this kind of wholesale sell off is 676 00:37:21,719 --> 00:37:23,920 Speaker 1: that we've been kind of putting companies into one of 677 00:37:24,040 --> 00:37:27,480 Speaker 1: three buckets. You either have businesses that have been big 678 00:37:27,520 --> 00:37:30,040 Speaker 1: growers for ten years that are hitting a wall. These 679 00:37:30,080 --> 00:37:33,480 Speaker 1: are streamers like Netflix and Spotify that have to call 680 00:37:33,520 --> 00:37:36,880 Speaker 1: their business models into question. You have this middle group 681 00:37:37,120 --> 00:37:40,360 Speaker 1: of businesses like Meta and Amazon with a lot of 682 00:37:40,440 --> 00:37:43,719 Speaker 1: e commerce exposure, and it's very clear that just as 683 00:37:43,760 --> 00:37:46,239 Speaker 1: the market goes up and down, those businesses are going 684 00:37:46,280 --> 00:37:49,040 Speaker 1: to be affected. So we'll call them in the yellow 685 00:37:49,200 --> 00:37:51,960 Speaker 1: category of well, we'll see what e commerce does and 686 00:37:52,000 --> 00:37:54,799 Speaker 1: then those businesses will do just fine. And then there's 687 00:37:54,840 --> 00:37:58,680 Speaker 1: the green category of business models that are proving to 688 00:37:58,760 --> 00:38:02,839 Speaker 1: be unbelievably resilient. You had Thomas uh you know, from 689 00:38:02,840 --> 00:38:05,440 Speaker 1: the Google Cloud team on here earlier. He couldn't stop smiling, 690 00:38:05,840 --> 00:38:09,080 Speaker 1: and that's because cloud computing is just doing so well 691 00:38:09,320 --> 00:38:11,480 Speaker 1: in spite of how challenging of an environment that we're 692 00:38:11,480 --> 00:38:13,879 Speaker 1: in right now. And so that's definitely the one area 693 00:38:13,920 --> 00:38:16,400 Speaker 1: where we're probably spending the most time as investors because 694 00:38:16,680 --> 00:38:18,600 Speaker 1: prices have come down on a lot of stocks like 695 00:38:18,680 --> 00:38:21,960 Speaker 1: Snowflake and Data Dog in aws that all have exposure 696 00:38:22,000 --> 00:38:25,560 Speaker 1: to that end cloud computing segment. Interesting. Of course, as 697 00:38:25,600 --> 00:38:27,759 Speaker 1: you mentioned, Google Cloud was that one bright spot in 698 00:38:27,840 --> 00:38:30,600 Speaker 1: Alphabet results just a few weeks ago. Now, let's talk 699 00:38:30,600 --> 00:38:33,840 Speaker 1: about your strategy, because your E T F Kings is, 700 00:38:34,280 --> 00:38:35,959 Speaker 1: you know, down with the rest of the market thirty 701 00:38:36,680 --> 00:38:39,680 Speaker 1: year to date. How are you evolving your own strategy. 702 00:38:39,760 --> 00:38:42,400 Speaker 1: I know some of your top stocks are Meta, Amazon 703 00:38:42,480 --> 00:38:46,840 Speaker 1: and Alphabet yep Um and as I as I've been mentioning, 704 00:38:46,880 --> 00:38:49,080 Speaker 1: we're you know, moving more into some of these cloud 705 00:38:49,120 --> 00:38:52,520 Speaker 1: computing businesses like service now um. So our our our 706 00:38:52,560 --> 00:38:56,080 Speaker 1: strategy is it looks sometimes like a technology and desks, 707 00:38:56,160 --> 00:38:58,600 Speaker 1: but we're very pure investors. Where we start at the 708 00:38:58,640 --> 00:39:01,399 Speaker 1: industry where we find really big industries with a small 709 00:39:01,480 --> 00:39:04,200 Speaker 1: number of competitors. We find who the market leaders are 710 00:39:04,280 --> 00:39:06,720 Speaker 1: that are dating market share or have a dominant position. 711 00:39:07,400 --> 00:39:09,759 Speaker 1: We make sure that management is being responsible with how 712 00:39:09,800 --> 00:39:12,640 Speaker 1: they're allocating that capital, and then ultimately got to make 713 00:39:12,680 --> 00:39:14,440 Speaker 1: sure that you're paying a fair price for it. And 714 00:39:14,760 --> 00:39:17,239 Speaker 1: being down, you know, thirty four percent year to day 715 00:39:17,280 --> 00:39:19,279 Speaker 1: when Amazon is down thirty four percent year to date 716 00:39:19,360 --> 00:39:21,719 Speaker 1: is painful and it means that we paid too much 717 00:39:21,840 --> 00:39:23,920 Speaker 1: for some of the companies that we own. For the 718 00:39:24,000 --> 00:39:26,480 Speaker 1: most part, we're holding onto the businesses that we own, 719 00:39:26,560 --> 00:39:28,799 Speaker 1: as I mentioned Spotify as an example of a stock 720 00:39:28,880 --> 00:39:31,759 Speaker 1: that we dropped because we just don't believe in the 721 00:39:31,840 --> 00:39:35,480 Speaker 1: expansion into podcasts, even managements pulling back investment there. But 722 00:39:35,600 --> 00:39:39,600 Speaker 1: we're continuing to move money into these cloud computing businesses. 723 00:39:39,719 --> 00:39:41,719 Speaker 1: And that's the beauty of being one of these early 724 00:39:41,880 --> 00:39:45,640 Speaker 1: actively managed ets is we can move between stocks without 725 00:39:45,760 --> 00:39:49,400 Speaker 1: creating tax problems for investors, and everything we do is transparent, 726 00:39:49,480 --> 00:39:51,480 Speaker 1: so folks can follow along with us while we do 727 00:39:51,600 --> 00:39:56,360 Speaker 1: it as we do now, it's not really spooked a 728 00:39:56,440 --> 00:39:58,920 Speaker 1: lot of investors. I mean, the market was like shaking 729 00:39:58,960 --> 00:40:02,400 Speaker 1: in its boots. How booked were you by Snap? You know, 730 00:40:02,880 --> 00:40:06,080 Speaker 1: not necessarily Snap in particular, but the signal it's sent 731 00:40:06,200 --> 00:40:09,719 Speaker 1: about the macro environment and the digital ads business. It 732 00:40:10,040 --> 00:40:13,919 Speaker 1: was pretty interesting to watch the market process the Snap 733 00:40:14,040 --> 00:40:17,600 Speaker 1: information thirty days. It was only a month since Snap 734 00:40:17,760 --> 00:40:21,319 Speaker 1: was just out publicly reporting that they announced that they 735 00:40:21,360 --> 00:40:22,760 Speaker 1: were going to miss the low end of their guided 736 00:40:22,920 --> 00:40:25,640 Speaker 1: So that's scared a lot of people. Google and Meta 737 00:40:25,760 --> 00:40:28,359 Speaker 1: had a really bad day, But on that same day 738 00:40:28,480 --> 00:40:30,560 Speaker 1: you heard Service Now they had there There's a lot 739 00:40:30,560 --> 00:40:33,399 Speaker 1: of investor days happening right now they up their five 740 00:40:33,480 --> 00:40:36,920 Speaker 1: year revenue target by a billion dollars, and so investors 741 00:40:36,960 --> 00:40:40,040 Speaker 1: are getting a lot of mixed signals. Visa reported that 742 00:40:40,160 --> 00:40:43,359 Speaker 1: while they're seeing variability across different markets, for the most part, 743 00:40:43,480 --> 00:40:45,640 Speaker 1: they don't think we're in a recession. So you're getting 744 00:40:45,680 --> 00:40:47,480 Speaker 1: a lot of different data points that are out there, 745 00:40:47,520 --> 00:40:49,880 Speaker 1: and I'd say, clearly with what the markets in the 746 00:40:49,920 --> 00:40:52,480 Speaker 1: past couple of days, people view this more as an 747 00:40:52,560 --> 00:40:56,319 Speaker 1: idiosyncratic issue with snap because they've had while they've been 748 00:40:56,360 --> 00:41:00,440 Speaker 1: growing users, they've had a declining share of usage relative 749 00:41:00,480 --> 00:41:03,160 Speaker 1: to the rise of TikTok and reels on Instagram, and 750 00:41:03,280 --> 00:41:05,640 Speaker 1: that's been a hard thing for Snapchat to have to navigate. 751 00:41:05,760 --> 00:41:09,640 Speaker 1: So so far we've seen the Snapchat news be um 752 00:41:09,960 --> 00:41:12,960 Speaker 1: potentially isolating, but we're really not going to know for 753 00:41:13,000 --> 00:41:15,439 Speaker 1: another six to eight weeks when earning season lights up again. 754 00:41:16,080 --> 00:41:18,600 Speaker 1: Now we saw this big broad com VM where deal 755 00:41:18,680 --> 00:41:22,520 Speaker 1: get announced today, tech stocks bouncing back. Where where are 756 00:41:22,560 --> 00:41:25,279 Speaker 1: you pleasing your bets for next week? I mean, you know, 757 00:41:25,360 --> 00:41:27,520 Speaker 1: there's so much concern that we're you know, you know, 758 00:41:27,680 --> 00:41:29,520 Speaker 1: heading into a recession, that this is going to be 759 00:41:29,680 --> 00:41:33,439 Speaker 1: some long drawn out period of pain, and then other 760 00:41:33,600 --> 00:41:36,680 Speaker 1: signs that maybe it's it's it's it's just a blip. 761 00:41:38,040 --> 00:41:42,480 Speaker 1: It's noisy, it's very noisy. Um, you know, we're I 762 00:41:42,640 --> 00:41:45,560 Speaker 1: think you're right that this is just the beginning of 763 00:41:45,640 --> 00:41:48,160 Speaker 1: a wave of acquisitions. You had a chart up earlier 764 00:41:48,200 --> 00:41:50,680 Speaker 1: with five different acquisitions that we've already seen this year, 765 00:41:51,000 --> 00:41:54,360 Speaker 1: all in the multi billion dollar phase. I think it 766 00:41:54,520 --> 00:41:57,279 Speaker 1: is extremely reasonable to assume that the second half of 767 00:41:57,320 --> 00:42:00,440 Speaker 1: this year will have an even faster pace of act positions. 768 00:42:00,680 --> 00:42:02,880 Speaker 1: There's simply too much dry powder out there. There's too 769 00:42:02,960 --> 00:42:05,680 Speaker 1: much cash sitting on corporate balance sheets, and there's too 770 00:42:05,760 --> 00:42:08,719 Speaker 1: many valuations that are really attractive. So if you're if 771 00:42:08,719 --> 00:42:11,239 Speaker 1: you're Google and you're sitting there and wondering how to 772 00:42:11,440 --> 00:42:14,520 Speaker 1: you know, turn Google images into Pinterest, Uh, you're like, wow, 773 00:42:14,600 --> 00:42:16,600 Speaker 1: this could take a few years, or we could try 774 00:42:16,640 --> 00:42:19,799 Speaker 1: and go and buy the company for billion dollars. That's 775 00:42:19,880 --> 00:42:22,120 Speaker 1: just something that wasn't in the cards a couple of 776 00:42:22,200 --> 00:42:25,000 Speaker 1: years ago when prices were too high. And so when 777 00:42:25,040 --> 00:42:27,440 Speaker 1: you have some of these larger businesses whose growth rates 778 00:42:27,480 --> 00:42:30,200 Speaker 1: are slowing, with some of these smaller businesses that still 779 00:42:30,239 --> 00:42:33,239 Speaker 1: have penetrating growth rates. By the way Snapchat might be 780 00:42:33,400 --> 00:42:36,719 Speaker 1: up for sale fifteen billion dollars for one of the 781 00:42:36,840 --> 00:42:41,200 Speaker 1: world's very few social networks that works internationally. Uh, it's 782 00:42:41,600 --> 00:42:44,520 Speaker 1: gonna get be a really interesting conversation, I think for 783 00:42:44,560 --> 00:42:47,600 Speaker 1: a lot of these assets that are that are pretty unique. Um, 784 00:42:47,880 --> 00:42:50,480 Speaker 1: and we'll see how it goes. You just gave our 785 00:42:50,640 --> 00:42:53,960 Speaker 1: print reporters, uh, some homework there to chase some deals. 786 00:42:54,120 --> 00:42:57,080 Speaker 1: Robert Cantwell of Upholdings as always great to have you. 787 00:42:57,520 --> 00:43:00,239 Speaker 1: That does it for this edition of Bloomwork Technology. Emily 788 00:43:00,320 --> 00:43:02,799 Speaker 1: Chang in San Francisco, Solar Winds CEO, will be joining 789 00:43:02,840 --> 00:43:04,520 Speaker 1: us to talk cyber tomorrow