WEBVTT - Starburst's Espahbodi on Growing Investment in Aerospace(Audio)

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<v Speaker 1>a Bloomberg business flash. You're listening to taking stock with

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<v Speaker 1>Kathleen Hays and Pim Fox on Bloomberg. Radio accelerators accelerators

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<v Speaker 1>for the aerospace and defense industry. What are they? How

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<v Speaker 1>do they work? Well, that's why we have Van s. Pabodi.

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<v Speaker 1>He is a partner and a co founder of Starburst Accelerator.

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<v Speaker 1>They are based in Los Angeles. They can be followed

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<v Speaker 1>on Twitter at star Burst I double n O V

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<v Speaker 1>as an innovation. Well, Van joins us now here in

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<v Speaker 1>the studio. All right, so innovate, help us understand this

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<v Speaker 1>world of accelerators and defense and aerospace companies. What's this

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<v Speaker 1>all about, Van? I guess the first thing you'd have

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<v Speaker 1>to think about is the generational gap this world of

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<v Speaker 1>Silicon Valley startups, even those startups here in the New

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<v Speaker 1>York area that are trying to find a way to

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<v Speaker 1>access these big aerospace brands. Who to go out? Who

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<v Speaker 1>do I talk to at Boeing at Airbus to help

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<v Speaker 1>me get that product into the marketplace. Well, when you

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<v Speaker 1>talk about the marketplace, is it to sell ideas and

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<v Speaker 1>products to the actual aerospace companies or to go directly

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<v Speaker 1>to the US government, or maybe a mixture of both.

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<v Speaker 1>It's a mix. It's never that straightforward. Most people have

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<v Speaker 1>difficulty navigating these big rules and how to become a supplier.

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<v Speaker 1>Some tend to represent the future of the industry around

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<v Speaker 1>drone technology, um transporter systems. You know, even technologies as

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<v Speaker 1>interesting as hyperloop might not be aerospace related, but it

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<v Speaker 1>requires the same sort of engineering. And the background of

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<v Speaker 1>Starburst has international routes. That's correct. We started in Paris

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<v Speaker 1>about three years ago and the model UM was easier

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<v Speaker 1>to be organized because the supply chain in Europe is

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<v Speaker 1>much more hierarchical. So it was pretty exciting to get

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<v Speaker 1>that off the ground and have some good success case

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<v Speaker 1>studies there and then bring it over here less than

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<v Speaker 1>a year ago, and we had our first event last

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<v Speaker 1>October and it's been ramping up pretty quickly since. Give

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<v Speaker 1>us an idea of some of the companies that you've

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<v Speaker 1>been working with and some of the services you've been providing.

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<v Speaker 1>The word aerospace means a lot of different things to

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<v Speaker 1>allot of different people, but UM space and drones tend

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<v Speaker 1>to be the low hanging fruit, those that really start

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<v Speaker 1>to resonate with people. But there's a lot of infrastructure

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<v Speaker 1>in between those two world that has just as much

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<v Speaker 1>opportunity to grow in the industry. So we're learning about

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<v Speaker 1>new materials and nanotechnology. We're learning about air traffic systems

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<v Speaker 1>for drones, we're learning about electric propulsion systems for small satellites.

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<v Speaker 1>The size of our fists what would be an example

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<v Speaker 1>of an actual company. So some of the companies that

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<v Speaker 1>have presented our panels include a millimeter wave radio frequency

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<v Speaker 1>UM technology that's spun out of Ireland, out of a

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<v Speaker 1>lab there and they're getting a lot of love from

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<v Speaker 1>the corporate partners that support our program. Um. They're called

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<v Speaker 1>a Rolis. Another one I can think of is called Axion.

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<v Speaker 1>It's developed a nanotechnology for electric propulsion systems really to

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<v Speaker 1>make the best use of energy while traveling in space. Um,

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<v Speaker 1>something around the passenger experience can be around in flight

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<v Speaker 1>entertainment systems. We're working with companies that are developing lightweight

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<v Speaker 1>seed technology based out of Singapore. We've also learned about

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<v Speaker 1>a company that identifies alerts if a drone is flying

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<v Speaker 1>near an airport to avoid any sort of collision. Well,

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<v Speaker 1>what's that company? Because that company is called Airmap air Map,

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<v Speaker 1>and that is something I would imagine that local as

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<v Speaker 1>well as federal officials would be interested in. Exactly. They've

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<v Speaker 1>done very well too, uh, create the attention at a

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<v Speaker 1>federal level and work very closely with the policy holders

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<v Speaker 1>in the f a A and the White House. Having

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<v Speaker 1>said that they in order for this to really get

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<v Speaker 1>the traction, they've got to work with the drone operators

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<v Speaker 1>and as well as the local airports. So it's a

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<v Speaker 1>pretty major undertaking to get that sort of trial and

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<v Speaker 1>pilot programs in place with specific air fields. What kind

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<v Speaker 1>of money does an accelerator like Starburst offer potential companies.

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<v Speaker 1>So most startup startups at a seed stage that have

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<v Speaker 1>some strong I P and they really have a pattern

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<v Speaker 1>or two pending really ready to kind of hit the

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<v Speaker 1>ground running. They're still really small. They're looking for anywhere

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<v Speaker 1>from half a million k too as big as ten million.

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<v Speaker 1>But it's up to us to kind of walk them

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<v Speaker 1>through the process and saying some of the whether or

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<v Speaker 1>not some of their what they're asking for from these investors,

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<v Speaker 1>including us, is unrealistic or not, and whether or not

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<v Speaker 1>we can help them reduce that scope through partnering with

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<v Speaker 1>some of the corporates, which is a critical component of

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<v Speaker 1>what we do. The company safety Line is one of

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<v Speaker 1>the companies you've been involved with, and I wonder if

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<v Speaker 1>you could just describe what they do and how they

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<v Speaker 1>connect with what you're trying to achieve. Safety Line has

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<v Speaker 1>developed an algorithm that analyzes the black box data that

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<v Speaker 1>most people tend to only identify after an incident has

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<v Speaker 1>been made. So what they've done, very carefully and very

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<v Speaker 1>creatively is use some deep learning algorithm to understand the

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<v Speaker 1>behavior of an aircraft during the climb phase as a

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<v Speaker 1>and in order to then provide guidance to a pilot

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<v Speaker 1>to say, as you're climbing, if you change the speed

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<v Speaker 1>during your client phase, you can save up to temper

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<v Speaker 1>cent a fuel. So what they're doing is they're offering

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<v Speaker 1>airlines this software suite to say, if you run this

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<v Speaker 1>through your flight management system, we can help you achieve

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<v Speaker 1>tem percent fuel reduction in your overall fleet. And if

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<v Speaker 1>you're able to do it, offer them a creative business

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<v Speaker 1>model to say, we'll take ten percent of the ten percent. Alright, good,

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<v Speaker 1>thank you very much for spending time with us. Evan S.

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<v Speaker 1>Pabodi he is the partner and the co founder of

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<v Speaker 1>Starburst Accelerator. They're based in Los Angeles and they can

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<v Speaker 1>be followed on Twitter at Starburst. I double n O

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<v Speaker 1>v as in innovation companies creating new products and services

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<v Speaker 1>for the aerospace and the defense industry. Coming up on

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<v Speaker 1>taking Stock, we're going to be talking about impact investing.

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<v Speaker 1>Black Rock has a new exchange traded fund and focuses

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<v Speaker 1>on sustainable investing. We'll find out why that is a

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<v Speaker 1>growing portion of people's investment portfolio. Next Bloomberg, taking Stock

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