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Speaker 1: From the heart where innovation, money and power.

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Speaker 2: Collie in Silicon Vallet Nbon This is Bloomberg Technology with

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Speaker 2: Caroline Hide and Ed Ludlove.

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Speaker 1: Amed Ludlow in San Francisco. Caroline Hides off today this

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Speaker 1: is Bloomberg Technology coming up full earnings coverage as we

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Speaker 1: rat results from pinterest and push your head to Qualcom

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Speaker 1: that's out after the bell and speaking of chipmakers, will

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Speaker 1: rap results from AMD and look at soft Banks r IPO,

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Speaker 1: which is eyeing evaluation of more than sixty billion dollars plus.

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Speaker 1: We take a deep dive into the world of crypto.

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Speaker 1: We speak to the CEO of the Eyebel Scanning Cryptocurrency

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Speaker 1: project World Coin. The earning story. Two names in particular

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Speaker 1: that I'm looking at to start with AMD, A beat

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Speaker 1: on the top of bottom line against expectations in the court,

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Speaker 1: a gone signs of recovery in the PC market. A

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Speaker 1: long term projection about the market opportunity for them in

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Speaker 1: the context of AI and AI accelerators. Biskunjensavani. It's going

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Speaker 1: to join me later in the show to go through

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Speaker 1: those numbers and talk about where AMD sits in the

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Speaker 1: ecosystem of chip names. Then you've got Pinterest. The story simple,

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Speaker 1: the projection it's giving just shows that it's not having

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Speaker 1: the same fortune in the ad space that some of

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Speaker 1: its peers are. Why why is it not doing as

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Speaker 1: well as the likes of Meta? And what is it

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Speaker 1: about this platform that's not resonating in the same way

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Speaker 1: as some of the ad based social platforms. Well, it's

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Speaker 1: got the perfect guest joining us now, analyst Mark Mahaney

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Speaker 1: ever caught ISI Senior Managing Director. Mark has an outperformed

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Speaker 1: rating on Pinterest with a forty five dollars price target. Mark,

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Speaker 1: good morning to you from San Francisco. What's the story

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Speaker 1: with Pinterest? To your mind, it's the name you like

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Speaker 1: it is, it's.

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Speaker 3: Actually when we recently upgraded that so much for the quarter,

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Speaker 3: but we're looking forward to a fundamental inflection point. That

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Speaker 3: fundamental inflection point requires the overall ad market to rebound

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Speaker 3: and to recover, and I think the truth from earning

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Speaker 3: season so far is that it really hasn't done that.

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Speaker 3: Meta had phenomenally good results, particularly in terms of its

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Speaker 3: September quarter outlook, but I think that's mostly very company

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Speaker 3: specific factors.

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Speaker 4: Meta has a bunch of product cycles that are all.

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Speaker 3: Hitting At the same time, they also have the easiest

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Speaker 3: comps because they.

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Speaker 4: Were most dramatic.

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Speaker 3: They were the most of their company most dramatically impacted

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Speaker 3: by the Apple privacy changes a year ago. So they's

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Speaker 3: kind of a seuey generous case, whereas the other names

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Speaker 3: are seeing modest improvement. That's Google, that's Pinterest, especially these

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Speaker 3: second tier platforms like Pinterest and Snap, and Snap is

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Speaker 3: seeing almost no recovery. They're still declining on a negative

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Speaker 3: base to begin with, or the base that was declining

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Speaker 3: last year, So we.

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Speaker 4: Still need it.

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Speaker 3: It's kind of still TBD, but we still like the

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Speaker 3: call because we think that eventually we're going to get

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Speaker 3: this recovery in the ad market, and then we're seeing

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Speaker 3: a lot of initiatives at pinterest that are starting to

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Speaker 3: show go off, show up in terms of accelerating user growth,

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Speaker 3: nice solid growth and engagement. We just need the advertisers

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Speaker 3: to start clicking in, and I think that this partnership

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Speaker 3: that they're rolling out with Amazon in the back half

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Speaker 3: of the year will kind of unlock that advertiser interest.

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Speaker 4: So that's why we're long and we like Pinterest as

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Speaker 4: a buy.

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Speaker 1: Sales in the court have gone rows six percent to

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Speaker 1: seven hundred and eight million dollars for the period ending

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Speaker 1: June thirtieth, above street expectations. But I guess to your point,

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Speaker 1: if you compare with Meta, Meta delivered double digit percentage growth.

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Speaker 1: One part of Meta's story mark was AI driven recommendations

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Speaker 1: and that seem to boost the AD side of the

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Speaker 1: equation as well. What tools does pinterest have from a

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Speaker 1: technology perspective to drive growth both at the user level

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Speaker 1: and at the top line.

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Speaker 4: Well, they are.

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Speaker 3: They also are applying AI to figure out better.

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Speaker 4: Which content to put in front of their users, to.

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Speaker 3: Help advertisers better target ads and then soon to create

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Speaker 3: creative But you step back Meta and Google, you know,

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Speaker 3: the biggest at largest AD platforms are going to have

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Speaker 3: structural advantages when it comes to AI, and then particularly

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Speaker 3: I think Meta has been very aggressive and rightly so

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Speaker 3: and smartly so in terms of putting a lot of

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Speaker 3: money on a lot of resources behind using machine learning

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Speaker 3: and AI over the last couple of years and our

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Speaker 3: generative AI to build up, you know, to help out

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Speaker 3: marketers find the right audience, monetize i'm sorry, optimize their

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Speaker 3: campaigns and do the best targeting and tracking and measurement

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Speaker 3: of those campaigns and then also very soon to start

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Speaker 3: creating ads and then kind of a b testing on

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Speaker 3: that massive scale, which.

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Speaker 4: They couldn't do before.

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Speaker 3: So I think if you really want to see a

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Speaker 3: winner in and that the application of generative AI to

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Speaker 3: advertising models, it's probably Meta handover fist and then probably

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Speaker 3: Google too. The other players will also benefit, I think,

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Speaker 3: just not nearly to the extent that the large scale

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Speaker 3: players will.

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Speaker 1: Mark bill Ready has been in the CEO role for

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Speaker 1: a year. What is your assessment, your scorecard of his

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Speaker 1: leadership so far?

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Speaker 3: Well, he's implemented a series of changes to try to

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Speaker 3: get to regrow the user base and to raise engagement.

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Speaker 3: It looks to me like he gets a V plus

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Speaker 3: and a minus for doing that. I mean, since he's

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Speaker 3: joined the company, you've started to get accelerating user growth again.

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Speaker 3: They're doing about four hundred and fifty million maus. It's growing,

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Speaker 3: you know, solidly seven percent.

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Speaker 4: Year over year. That's pretty good growth for a business

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Speaker 4: of that base.

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Speaker 3: And you're starting to see more engagement than some of

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Speaker 3: the metrics that they talk about.

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Speaker 4: Like sessions or saves per user.

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Speaker 3: Those are all growing faster than the number of users,

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Speaker 3: so you're seeing rising engagement, so he gets kind of

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Speaker 3: a B plus a minus for that, which still TBD.

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Speaker 3: So whatever that's a B minus is. On the advertiser side,

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Speaker 3: there are some numbers he's thrown out about the small

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Speaker 3: percentage of pinterest advertisers who've adopted their tools and are

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Speaker 3: spending a lot faster, like thirty percent growth year over year.

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Speaker 4: I just want to know whether.

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Speaker 3: That's going to expand and cover half of the pinterest

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Speaker 3: advertiser base, and whether he can really get new types

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Speaker 3: of advertisers onto the platform. So that's that's kind of

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Speaker 3: what we're really watching for, and it'll be simple. It'll

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Speaker 3: show up in the revenue growth numbers, and we won't

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Speaker 3: just have revenue growth go from six percent to seven

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Speaker 3: percent to eight percent year over year.

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Speaker 4: I mean, it should get chunky. It should go fifteen percent,

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Speaker 4: twenty percent.

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Speaker 3: That would be the real test and the proof of

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Speaker 3: whether he's succeeding in terms of getting advertisers to unlocking

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Speaker 3: advertisers spend.

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Speaker 1: It's I know it's been thirty six hours since Uber

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Speaker 1: posted its numbers, but I want to get your take

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Speaker 1: a milestone with surprise profitability operating profit on a gap basis,

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Speaker 1: but the market seemed to sell the shares on sort

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Speaker 1: of longer term growth concerns. How they continue growing, I

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Speaker 1: guess at the you know, brider level, but also like

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Speaker 1: the future of this business beyond its legacy mark.

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Speaker 4: I think you set it up right, except that I

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Speaker 4: just layer in one other thing, which.

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Speaker 3: Is as we've gone, you know through earning season, it's

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Speaker 3: a high bar quarter. That wasn't the case the last

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Speaker 3: two quarters. Stocks had been so beaten down last year

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Speaker 3: in terms of estimates, cuts and multiple d ratings, and

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Speaker 3: you know this year you've had a recovery in a

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Speaker 3: small recovery in fundamentals, but you certainly have had a

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Speaker 3: recovery in multiples.

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Speaker 4: So I just think the bar is higher.

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Speaker 3: Even look at Meta, which I would consider the monster

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Speaker 3: company report of the of the quarter. I mean, the

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Speaker 3: forward guidance was materially better than even the bulls had

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Speaker 3: thought was possible, and yet that stock is kind of

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Speaker 3: barely holding onto the gains and it's kind of mid

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Speaker 3: single digital three four percent gain, So it's.

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Speaker 4: A tough bar. This quarter, uber put up a pretty

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Speaker 4: good quarter.

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Speaker 3: Expectations were high, but there was a little the revenue

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Speaker 3: came in a little bit light and so, and I

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Speaker 3: think that's mostly due to accounting change, but still it's

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Speaker 3: like a little bit of a question mark on a

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Speaker 3: stock that's had a major year to date rally. So

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Speaker 3: I think you're going to I think there were some

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Speaker 3: technical factors in there too, but leaving that aside, I

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Speaker 3: think for some of these names, this quarter is going

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Speaker 3: to be kind.

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Speaker 4: Of a It's not going to be a gap up

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Speaker 4: quarter for good numbers. It's going to be a consult

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Speaker 4: in terms of the stock, it's going to be.

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Speaker 3: A kind of a consolidation quarter, and companies are going

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Speaker 3: to kind of be flatish or down mid single digit percent,

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Speaker 3: And then we're going to wait and see whether the

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Speaker 3: fundamentals continue the improvement in H two that we saw

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Speaker 3: in H one.

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Speaker 4: If that happens, especially.

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Speaker 3: For ad names and online retail names like Amazon, then

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Speaker 3: those stocks will go higher. But this is going to

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Speaker 3: be a tough quarter for any you had quarter last quarter,

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Speaker 3: you had a couple of these names traded up double

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Speaker 3: digit percent, ten percent plus.

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Speaker 4: I think that's much harder to happen this quarter. I

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Speaker 4: think the setup is much tougher.

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Speaker 1: Mark Thursday does bring Amazon quickly. What are you expecting

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Speaker 1: from Amazon?

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Speaker 4: There's three things that matter here.

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Speaker 3: Whether the operating margins on the retail business continue to recover.

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Speaker 4: I think we'll see that.

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Speaker 3: Whether the online retail revenue growth rates kind of stable

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Speaker 3: and maybe even start to accelerate based on recent positive

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Speaker 3: data points.

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Speaker 4: I think we'll see that.

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Speaker 3: It's less certain to But then the most important thing

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Speaker 3: is whether AWS reaccelerates. We're the way we phrased it

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Speaker 3: is well the CFO used the A word i e.

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Speaker 4: Is an acceleration.

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Speaker 3: And look, if AWS growth reaccelerates, I think you'll see

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Speaker 3: a lot of follow through on stock. I think the

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Speaker 3: stock can go higher. I just don't know whether they

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Speaker 3: will be able to see that. They didn't see it

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Speaker 3: in the gym quarter. I'm pretty certain whether they're starting

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Speaker 3: to see signs of that in September quarter is a

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Speaker 3: big unknown to everybody. So what that's going to be

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Speaker 3: the most important thing to glean from that earning scar.

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Speaker 1: All right, Hi, bar Courter, Mark Mahoney, evercre thank you

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Speaker 1: so much for your time. I think we'll just stick

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Speaker 1: with Amazon. Actually, Amazon launching the biggest overhaul of its

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Speaker 1: grocery business since it acquired Whole Foods Markets six years

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Speaker 1: ago for thirteen point seven billion dollars. For more in

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Speaker 1: the details. That's bringing Bloomberg's Matt Day, who's been writing

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Speaker 1: about this in Business Week. What I enjoyed about your

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Speaker 1: article is you put Amazon in the context of the

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Speaker 1: entire landscape for groceries in this country. But what does

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Speaker 1: the reset look like.

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Speaker 5: It looks like trying to kind of push together all

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Speaker 5: the disjointed parts of its grocery business. Right, Amazon bought

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Speaker 5: Whole Foods several years ago. Amazon has its own Amazon

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Speaker 5: Fresh online delivery business. They've opened a few dozen stores.

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Speaker 5: They're trying to make all of that kind of sing

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Speaker 5: better together. Right So, right now, if you go online,

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Speaker 5: try to shop for groceries on Amazon, you might wind

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Speaker 5: up making three separate purchases with three separate deliveries. They've

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Speaker 5: said they're going to funnel that under one single basket,

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Speaker 5: one single cart, and then eventually they're hoping to start

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Speaker 5: re expanding that that brand new Amazon Fresh physical grocery

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Speaker 5: chain they started back during the pandemic.

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Speaker 1: What is Andy Jase's attitude towards the grocery business. So

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Speaker 1: you've guys reported that he's taken a look at other units,

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Speaker 1: for example, Prime Video, and said, well, let's get this

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Speaker 1: under control. So what do we know about how he

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Speaker 1: views the grocery opportunity.

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Speaker 5: So since Jeff Bezos first nudge Amazon toward grocery getting

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Speaker 5: on fifteen twenty years ago, the rest now has been

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Speaker 5: kind of the same for Amazon. Like listen, grocery shops

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Speaker 5: the most frequent purchase that people make. You know, we

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Speaker 5: need to be there if we're going to be a

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Speaker 5: lot of you know, globe straddling retailer.

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Speaker 2: Right.

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Speaker 5: Amazon's got a tidy business of course already. But we've

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Speaker 5: heard Andy Jassey makes some of the similar comments that

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Speaker 5: you know, listen, groceries are a really important category. We

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Speaker 5: think we have something to say there, and we're committed

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Speaker 5: to it for the long term. You know that said,

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Speaker 5: they did make a pretty big tap on the brakes,

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Speaker 5: you know this about this time of year ago when

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Speaker 5: they stopped expanding Amazon Press stores and really taking a

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Speaker 5: hard look at, you know, whether their grocery strategy was

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Speaker 5: the right one. They think they're there, but you know,

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Speaker 5: I guess we'll see, all right.

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Speaker 1: Bloombo's Matt Day check out his piece and Business Week

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Speaker 1: about the big Amazon Grocery reset. AMD reported better than

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Speaker 1: expected second quarter results, which signal some an optimism about

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Speaker 1: the chip maker's AI potential, the CEO saying, quote, while

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Speaker 1: we're still in the very early days of the new

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Speaker 1: era of AI, it's clear that it represents a multi

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Speaker 1: billion dollar growth opportunity for AMD. Joining US now Bloomberg

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Speaker 1: Intelligence is chip handelist Congensabani, So the opportunity is framed

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Speaker 1: as being one hundred and fifty billion dollars by twenty

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Speaker 1: twenty seven. We're talking specifically about AI accelerators. The stock

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Speaker 1: now it session loads down eight percent. What do we

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Speaker 1: not like about what AMD said?

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Speaker 6: I think the stock reaction is due to the lack

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Speaker 6: of any quantifiable matrix around the AI business. I mean, look,

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Speaker 6: there's no doubt that there is definite positive customer interests,

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Speaker 6: there's definite positive customer feedback. But these processes take a

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Speaker 6: long time. You go from sampling to customers, they need

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Speaker 6: to qualify it place the pos an Even after that

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Speaker 6: there's a couple of quarters for the ramp. So I

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Speaker 6: think the stock reaction is due to the lack of

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Speaker 6: any quantifiable matrix around the magnitude and the timing of

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Speaker 6: the revenue upside from this business for next year.

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Speaker 1: The way the AMD framed it is the customer engagements

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Speaker 1: engagements with seven x in the quarter gone, But that

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Speaker 1: doesn't equate to booking revenue. That's your point exactly, Yes,

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Speaker 1: And talk about where AMD is in the life cycle

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Speaker 1: of its AI offering. You know, on this show Bling

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Speaker 1: with Technology, we always talking about in video in h

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Speaker 1: one hundreds, but that is just the latest generation of

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Speaker 1: a number of AI relevant GPUs from Nvidia that have

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Speaker 1: been in the market for a long time. His AMD

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Speaker 1: actually got anything out there in the wild that customers

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Speaker 1: have their hands on.

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Speaker 6: I mean, for Apple tablets comparison, the Mi three hundred

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Speaker 6: x will be the specific AIGPU which is supposed to

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Speaker 6: SAMP or go to a production ramp in Q four.

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Speaker 6: So no, and Vidia is running right now deployed as

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Speaker 6: second generation GPUs in the field already. But AMD is

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Speaker 6: a TAD would relate to this game.

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Speaker 1: The story for A and D is AI accelerators. What

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Speaker 1: is an AI accelerator.

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Speaker 6: I think most people are of for CPU, which is

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Speaker 6: a general purpose compute designed to process a lot of

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Speaker 6: different tasks and do it well. But an accelerator is

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Speaker 6: a chip specifically designed to fastly process one specific type

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Speaker 6: of task, hence the name accelerator because it accelerates the

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Speaker 6: processing of one specific type of task. So GPU in

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Speaker 6: theory is a type of accelerator. The other types of

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Speaker 6: accelerators are ACIC chips like from once from Broadcom. The

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Speaker 6: TPU that Google uses is an accelerator. So when there's

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Speaker 6: a chip designed to only do compute for a specific task,

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Speaker 6: but do it very, very fast, that's what we call

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Speaker 6: it as an accelerator.

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Speaker 1: Away from the excitement of AI, this earning season has

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Speaker 1: been about the core legacy businesses. What did you learn

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Speaker 1: about AMD's health in PC and in data center?

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Speaker 6: I mean similar to Intel, the results around PC was

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Speaker 6: really good. It shows that the PC market bottom is

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Speaker 6: finally turning and on its path to a recovery and

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Speaker 6: the second half seasonality is going to be a tailwind there.

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Speaker 6: When it comes to data center though, we have seen

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Speaker 6: it again both from Indian Intel, that the enterprise market

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Speaker 6: remains a mixed environment. There's still some inventory that needs

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Speaker 6: to be cleared and the demand is not as strong

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Speaker 6: and on the side on the data center for the

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Speaker 6: cloud guys, though coming into this year, we know that

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Speaker 6: the total wallet spend is lower than what we expected

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Speaker 6: at the end of twenty twenty two. And they're heavily

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Speaker 6: spending in their AI cloud portion, which forces them to

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Speaker 6: optimize in the non AI cloud pustion. And that's where

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Speaker 6: these players have the big market. What the AMD and

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Speaker 6: INDEL are feeling deadborn?

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Speaker 1: All right, Bloomberg Intelligence is Conngensabani. Check out his earnings

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Speaker 1: outlook on the Bloomberg terminal. Sticking with chip, soft Bank

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Speaker 1: is also feeling optimistic about AI. The company's semiconductor unit

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Speaker 1: ARM is targeting an IPO valued between sixty and seventy

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Speaker 1: billion dollars. According to Bloomberg sources, the company could go

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Speaker 1: public as soon as September. Earlier this year, bankers had

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Speaker 1: pitched valuations ranging from thirty billion to seventy billion dollars,

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Speaker 1: but m CEO Rene Has and soft Bank's Masayoshi's Sun

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Speaker 1: considered the lower end of that range too low. This

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Speaker 1: debut would surpass most in the chipping industry, all right.

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Speaker 1: Coming up, Sticking with AI impacting the workforce, how some

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Speaker 1: US states are seeking to regulate the new tech. This

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Speaker 1: is Bloomberg time now for work shifting. Where we look

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Speaker 1: at the changing landscape of the labor market amid advances

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Speaker 1: in technology. First, I'm trying to sort winners from losers

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Speaker 1: as AI spreads through the economy. The stock market already

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Speaker 1: is and it goes way beyond Nvidia and Microsoft. A

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Speaker 1: trio of researchers from California universities say companies work with

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Speaker 1: workforces ripe is for AI are beating the market. Their study,

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Speaker 1: titled Generative AI and Firm Values, depicts a market that

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Speaker 1: is already making broad judgments about how automation impact things

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Speaker 1: like cash flows and stock valuation, as intelligence systems cement

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Speaker 1: themselves as tools of production. Sticking with AI, US states

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Speaker 1: are seeking to regulate AI with new legislation. North Dakota's

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Speaker 1: AI related measures were among more than a dozen that

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Speaker 1: have passed legislatures across the US, covering matters that range

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Speaker 1: from road maintenance to examining potential racial discrimination by automated

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Speaker 1: systems and companies that contract social media influences and now

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Speaker 1: demanding that those influencers by insurance businesses partnering with semi

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Speaker 1: famous people on TikTok, Instagram, and YouTube want the personalities

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Speaker 1: to take out policies to protect the brands that they're

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Speaker 1: promoting before they can expect any more deals here with

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Speaker 1: all the details. Bloomberg's Alex Brinka out in La, Okay.

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Speaker 1: Why does a semi famous influencer need an insurance policy?

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Speaker 1: What is the argument here?

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Speaker 7: Well, it's all about usually these are brands who are

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Speaker 7: contracting these influencers. When brands go to influencers an ask

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Speaker 7: them to make content for them, either for their own

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Speaker 7: channels or to post on social media, there's always been

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Speaker 7: the inherent level of risk, right you're turning over your

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Speaker 7: brand voice to these influencers, to these internet individuals, and

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Speaker 7: now it seems like they're taking it a step further.

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Speaker 7: As influencers have become such a bigger part of their

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Speaker 7: marketing spend, it seems like brands are looking to cap

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Speaker 7: some of that risk by asking these creators to take

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Speaker 7: out these insurance policies that would protect them from doing

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Speaker 7: things like using music that's not licensed for commercial use,

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Speaker 7: or as I see here in La almost every single day,

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Speaker 7: taking pictures in front of a painted wall of a

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Speaker 7: building and that building image happen to be copywritten. So

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Speaker 7: brands are really looking to kind of cap their risk here.

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Speaker 7: But It's a really interesting move for creators, a lot

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Speaker 7: of which are not making so much money in every

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Speaker 7: single year.

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Speaker 1: So I guess the question is is the threat of

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Speaker 1: legal action real? Have we seen lawsuits against people trying

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Speaker 1: to make their name online?

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Speaker 7: We have, and there have been a couple key cases

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Speaker 7: mentioned by our colleague and some good report today. One

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Speaker 7: is being Energy. It's an energy drink that ed If

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Speaker 7: you spend any time on TikTok, you see creators big

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Speaker 7: and small promoting it. There was a lawsuit that alleged

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Speaker 7: that creators who are promoting the energy drink was using

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Speaker 7: music on TikTok that was not sanctioned for commercial use.

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Speaker 7: Not every sound or song you see on TikTok are

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Speaker 7: you able to use in something like an ad. There

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Speaker 7: was also a suit in London against a beauty brand

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Speaker 7: called Iconic, where a creator took a picture in front

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Speaker 7: of a piece of wal art that wasn't that was copywritten.

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Speaker 7: So these things are beginning to come up, But the

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Speaker 7: economics of these are really interesting. You could be a

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Speaker 7: creator who is looking to get paid four thousand dollars

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Speaker 7: for one post, but the brand is then asking you

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Speaker 7: to take out a two million dollar insurance policy basically

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Speaker 7: to indemnify them and asking you to spend two thousand

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Speaker 7: a year to keep that policy viable. So quite interesting

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Speaker 7: economics here that's being asked of these creators as brands

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Speaker 7: are looking to them to create content frankly a lot

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Speaker 7: cheaper sometimes than they can make it house.

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Speaker 1: So some of the numbers behind these policy limits are incredible.

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Speaker 1: But how does it work? Hey, insurance broker, I'm an influencer.

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Speaker 1: I need you know. Do you see where are you

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Speaker 1: getting this from? Is there a market for insurers who

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Speaker 1: are saying, oh, we better protect these famous people.

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Speaker 7: I would call the market ed pretty budding for larger creators,

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Speaker 7: famous names that you and I might not, people who

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Speaker 7: are celebrities online. This has been kind of par for

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Speaker 7: the course. But when you start to talk about the

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Speaker 7: vast majority of creators who are smaller micro influencers who

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Speaker 7: have one thousand to ten thousand followers, that's kind of

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Speaker 7: a scattershot approach. The brokers that are calling talk to

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Speaker 7: say that they basically do it on a case by

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Speaker 7: case basis. They look at the creator, they see how

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Speaker 7: controversial they are, and they pick a number based on

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Speaker 7: their own internal calculations.

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Speaker 1: All right, Bloomberg's autis baring around in LA and all

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Speaker 1: things influencer insurance.

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Speaker 2: Thank you very much.

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Speaker 1: Welcome back to Bloombow Technology ed Lovelo. Here in San Francisco,

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Speaker 1: it's the search for crypto clarity. Investors are seeing the

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Speaker 1: cryptocurrency market surge and sync as two federal New York

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Speaker 1: dodges issued decidedly different rulings over one single question, is

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Speaker 1: crypto a security? On July thirteenth, shares of coinbas surge

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Speaker 1: twenty four percent as US District judge and Alisa Torrez

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Speaker 1: found Ripple Lads issued tokens were not a security, despite

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Speaker 1: the SEC's arguments that it was. Then on the following Tuesday,

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Speaker 1: District Judge jed Rakoff found Terrorform Labs tokens maybe a security,

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Speaker 1: prompting coinbase to fall as much as nine point five percent.

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Speaker 1: Another story in the world of crypto, FDx co founder

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Speaker 1: Samuel Bankman Freed claims that revoking his bond and jailing

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Speaker 1: him for speaking with a newspaper reporter violate his free

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Speaker 1: speech rights. For more who else Bloomberg Shnli Basset joins

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Speaker 1: us hard ones understand, but what is Bankman Freed's argument, Yeah.

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Speaker 8: Let's take a minute to talk to about what got

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Speaker 8: us here. About July twentieth, you had the New York

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Speaker 8: Times publishing a story that kind of got into here.

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Speaker 8: Google documents that had the priving private writings of the

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Speaker 8: Caroline Ellison, who would have been slated to be a

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Speaker 8: star witness in the trial. Here when you look at

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Speaker 8: what had happened between Sam Bagman frieda and his workings

441
00:22:26,400 --> 00:22:30,320
Speaker 8: inside of FTX. Remember, Caroline Ellison was once dating Sam

442
00:22:30,400 --> 00:22:33,080
Speaker 8: Bagmanfried and some of what she had said, according to

443
00:22:33,080 --> 00:22:36,160
Speaker 8: the New York Times reporting, was that she was uncertain

444
00:22:36,280 --> 00:22:39,719
Speaker 8: about how she had ran Alameda, that she didn't particularly

445
00:22:39,760 --> 00:22:42,640
Speaker 8: feel well suited to run the company, and it felt

446
00:22:42,840 --> 00:22:45,720
Speaker 8: weird given that they had been dating on and off.

447
00:22:45,920 --> 00:22:46,440
Speaker 1: These two.

448
00:22:46,800 --> 00:22:50,320
Speaker 8: Now within a day, the US prosecutors had alleged SBF

449
00:22:50,400 --> 00:22:53,359
Speaker 8: of providing the press with these writings to discredit her

450
00:22:53,600 --> 00:22:56,879
Speaker 8: as a witness. Now, what Sam Bagmanfried is saying, because

451
00:22:56,920 --> 00:22:59,560
Speaker 8: the prosecutors had asked a judge last week to revoke

452
00:22:59,680 --> 00:23:02,640
Speaker 8: that to hundred fifty million dollars bond, he is saying

453
00:23:02,680 --> 00:23:06,600
Speaker 8: that revoking that bond would would violate his freesprice reach.

454
00:23:06,760 --> 00:23:07,480
Speaker 1: This is exactly his.

455
00:23:07,560 --> 00:23:10,439
Speaker 8: Response that the Sam Megman Freed's contact with the New

456
00:23:10,520 --> 00:23:13,280
Speaker 8: York Times Reporter was not an attempt to intimidate Missus

457
00:23:13,280 --> 00:23:15,720
Speaker 8: Elson or to chain the jewelry pool. It was a

458
00:23:15,840 --> 00:23:19,840
Speaker 8: proper exercise of his rights to make fair comment on

459
00:23:20,000 --> 00:23:22,760
Speaker 8: an article already in progress for which the reporter had

460
00:23:22,760 --> 00:23:25,520
Speaker 8: already had alternate sources. So that is where we stand today.

461
00:23:25,720 --> 00:23:28,600
Speaker 8: Significant dispute over from Sam Megman Freed. We will see

462
00:23:28,600 --> 00:23:29,679
Speaker 8: how this trial plays.

463
00:23:29,440 --> 00:23:32,919
Speaker 1: Out, and we will continue to track it. Balloobotionnati Bassics

464
00:23:32,960 --> 00:23:36,840
Speaker 1: stay with us because we're sticking with the broader crypto theme,

465
00:23:36,880 --> 00:23:40,080
Speaker 1: but turning to a different project in the crypto verse.

466
00:23:40,200 --> 00:23:43,879
Speaker 1: World Coin, the company aiming to create digital IDs by

467
00:23:43,960 --> 00:23:48,080
Speaker 1: scanning people's eyeballs, has been suspended in Kenya after launching

468
00:23:48,200 --> 00:23:51,400
Speaker 1: just last week. This is the country looks into security

469
00:23:51,680 --> 00:23:55,879
Speaker 1: and data concerns. We spoke with Chris Perskin, president of

470
00:23:55,960 --> 00:23:59,960
Speaker 1: coin Fund, an investor in world Coin, about its availability

471
00:24:00,080 --> 00:24:02,359
Speaker 1: in the future here in the United States.

472
00:24:03,720 --> 00:24:07,159
Speaker 9: Sorry here, I've had my orb personally scanned. It's a

473
00:24:07,200 --> 00:24:08,880
Speaker 9: matter of when will the token drop, and I think

474
00:24:08,880 --> 00:24:12,000
Speaker 9: maybe it goes back to Gosh it sounds like a

475
00:24:12,040 --> 00:24:15,159
Speaker 9: lot of these cryptocurrencies are a lot like oranges, and

476
00:24:15,280 --> 00:24:17,640
Speaker 9: so as that narrative plays out, I think you'll see

477
00:24:17,720 --> 00:24:19,040
Speaker 9: the token become available here.

478
00:24:19,760 --> 00:24:20,800
Speaker 1: But yeah, it's here.

479
00:24:20,880 --> 00:24:23,680
Speaker 9: You can get your eye scanned on the ORB and again,

480
00:24:23,760 --> 00:24:25,879
Speaker 9: I think it's going to deliver real utility as we

481
00:24:25,960 --> 00:24:27,040
Speaker 9: go into this brave new world.

482
00:24:29,119 --> 00:24:31,959
Speaker 1: That was a key investor for more. We're joined by

483
00:24:32,040 --> 00:24:36,360
Speaker 1: world Cooin CEO Alex Blani. Alex, welcome to Bloomberg Technology

484
00:24:36,440 --> 00:24:40,159
Speaker 1: and thank you for your time. Optimism from one of

485
00:24:40,200 --> 00:24:45,000
Speaker 1: your biggest investors about the potential of world Coin, but

486
00:24:45,200 --> 00:24:51,959
Speaker 1: acknowledgment of security incidents and sort of existing controversy around

487
00:24:52,040 --> 00:24:54,280
Speaker 1: the company and what's happened. What is your response to that?

488
00:24:58,119 --> 00:25:03,199
Speaker 2: Well, I mean that is contrary, is not surprising to us, right,

489
00:25:03,280 --> 00:25:09,200
Speaker 2: I think there is this immediate reaction to biometrics and

490
00:25:09,440 --> 00:25:13,520
Speaker 2: specifically our scanning, and that is to be expected. However,

491
00:25:14,240 --> 00:25:18,720
Speaker 2: the technology is actually privacy preserving and we believe it's

492
00:25:18,760 --> 00:25:21,320
Speaker 2: going to be very very important in a time in

493
00:25:21,440 --> 00:25:23,400
Speaker 2: which AI will become increasingly powerful.

494
00:25:23,560 --> 00:25:26,920
Speaker 8: You know, in the twenty four hours of the launch

495
00:25:26,960 --> 00:25:30,120
Speaker 8: there was a very very very significant uptake already when

496
00:25:30,160 --> 00:25:32,159
Speaker 8: you look at the world coin token that had dropped,

497
00:25:32,720 --> 00:25:35,320
Speaker 8: how has that uptake continued? And have you seen a

498
00:25:35,400 --> 00:25:36,200
Speaker 8: taper ring at all?

499
00:25:38,800 --> 00:25:42,760
Speaker 2: It stayed surprisingly constant. Honestly, we did not see much

500
00:25:42,880 --> 00:25:46,560
Speaker 2: change either up or down. It's very early, of course,

501
00:25:46,920 --> 00:25:50,639
Speaker 2: this is a multi year long or even multi decade

502
00:25:50,680 --> 00:25:52,640
Speaker 2: long project, so I think very like super super early

503
00:25:53,080 --> 00:25:56,159
Speaker 2: in the game here. However, I'm really really happy how

504
00:25:56,320 --> 00:25:59,240
Speaker 2: last week went from all parties, so I think it

505
00:25:59,320 --> 00:26:02,119
Speaker 2: was a great, great start, but we have a lot

506
00:26:02,160 --> 00:26:03,600
Speaker 2: of ground to cover going forward.

507
00:26:03,840 --> 00:26:07,040
Speaker 8: How many people have now signed up for the scanning,

508
00:26:07,200 --> 00:26:10,160
Speaker 8: how many people have got into the token, and when

509
00:26:10,200 --> 00:26:12,040
Speaker 8: do you see it coming to the United States, if

510
00:26:12,080 --> 00:26:12,320
Speaker 8: at all.

511
00:26:14,160 --> 00:26:16,920
Speaker 2: I actually do not have the exact numbers as of

512
00:26:17,240 --> 00:26:21,320
Speaker 2: right now, but it's a little over two million. We

513
00:26:21,480 --> 00:26:25,520
Speaker 2: had a like crazy, crazy spike in demand last week.

514
00:26:25,600 --> 00:26:28,800
Speaker 2: We had I think over six hundred thousand app downloads

515
00:26:30,440 --> 00:26:33,520
Speaker 2: in the first couple of days, and we hadlines really

516
00:26:33,560 --> 00:26:36,720
Speaker 2: all over the world, which was very kind of very

517
00:26:36,800 --> 00:26:40,440
Speaker 2: encouraging and very cool to see everywhere from Tokyo to

518
00:26:40,600 --> 00:26:45,879
Speaker 2: Hong Kong to Singapore to you know, kind of in Europe, Spain, Argentina,

519
00:26:46,440 --> 00:26:49,560
Speaker 2: not really so it was a very very stressful week.

520
00:26:49,640 --> 00:26:52,399
Speaker 2: We had a lot of kind of demand to react to,

521
00:26:52,880 --> 00:26:57,520
Speaker 2: and especially early on, our service actually broke down under that.

522
00:26:58,440 --> 00:27:02,960
Speaker 2: But yeah, where it's as I's said, it's early. We

523
00:27:03,760 --> 00:27:06,280
Speaker 2: have to grow and kind of roll out more devices

524
00:27:06,680 --> 00:27:09,680
Speaker 2: in the coming months, so it's really just the beginning

525
00:27:09,720 --> 00:27:10,200
Speaker 2: of a long.

526
00:27:10,080 --> 00:27:15,200
Speaker 1: Spread Alex, we refer to world coin as a crypto project,

527
00:27:15,680 --> 00:27:19,760
Speaker 1: but I'm interesting in the retinal scanning component, the underlying technology.

528
00:27:20,280 --> 00:27:23,280
Speaker 1: Could you explain to our audience where your competence lays.

529
00:27:23,440 --> 00:27:27,360
Speaker 1: Is it in that retinal scanning technology that you guys

530
00:27:27,400 --> 00:27:29,320
Speaker 1: have been doing most of your work, or do you

531
00:27:29,440 --> 00:27:30,719
Speaker 1: get that from a third party?

532
00:27:33,720 --> 00:27:36,560
Speaker 2: So, first of all, worldcoin is a protocol. It's an

533
00:27:36,760 --> 00:27:41,080
Speaker 2: open source and eventually fully decentralized protocol that everyone can

534
00:27:41,200 --> 00:27:43,720
Speaker 2: use and everyone can integrate web. So it is not

535
00:27:43,880 --> 00:27:47,200
Speaker 2: a company. I think that's the first important thing to understand.

536
00:27:47,640 --> 00:27:49,800
Speaker 2: I'm the CEO of Tools for Humanity, which is a

537
00:27:50,240 --> 00:27:51,920
Speaker 2: kind of one of the main and of course the

538
00:27:51,960 --> 00:27:54,399
Speaker 2: founding contributor to roldcin, but there will be many others

539
00:27:55,080 --> 00:27:59,520
Speaker 2: as we go forward. But now to your question actually

540
00:27:59,520 --> 00:28:01,960
Speaker 2: explaining or the COMPETENCEI lies, how does it fit together

541
00:28:02,040 --> 00:28:07,160
Speaker 2: with crypto. The original idea of world cooin was starting

542
00:28:07,400 --> 00:28:10,080
Speaker 2: a financial network based on the idea of proof of personnel.

543
00:28:10,200 --> 00:28:13,120
Speaker 2: Proof of person essentially means that you, as a user,

544
00:28:13,200 --> 00:28:16,520
Speaker 2: you can verify online that you are a unique human

545
00:28:16,560 --> 00:28:21,919
Speaker 2: being without revealing any privacy related data. So you actually,

546
00:28:22,359 --> 00:28:25,920
Speaker 2: let's say, let's stay actually with Twitter or X. You

547
00:28:26,080 --> 00:28:28,480
Speaker 2: want to verify on X that you're an actual human

548
00:28:28,520 --> 00:28:32,280
Speaker 2: being you're not about, which we believe will be increasingly

549
00:28:32,320 --> 00:28:35,280
Speaker 2: important as we go forward, as AI becomes increasing and powerful,

550
00:28:35,840 --> 00:28:37,440
Speaker 2: you will be able to just do that with world

551
00:28:37,480 --> 00:28:42,080
Speaker 2: ide without revealing any personal information about yourself by using

552
00:28:42,240 --> 00:28:44,920
Speaker 2: what is called zero knowledge proofs, and that is for example,

553
00:28:44,960 --> 00:28:48,240
Speaker 2: that's one of the pieces why crypto is important. In cryptography.

554
00:28:49,080 --> 00:28:50,840
Speaker 2: There are something called zero knowledge proofs that lets you

555
00:28:51,000 --> 00:28:55,400
Speaker 2: prove certain statements without actually revealing the underlying information, which

556
00:28:55,440 --> 00:29:01,680
Speaker 2: is very very important the to do that, so as

557
00:29:01,720 --> 00:29:03,600
Speaker 2: a user, to receive your world idea, you have to

558
00:29:03,760 --> 00:29:07,280
Speaker 2: verify yourself in front of a physical device. It's a

559
00:29:07,400 --> 00:29:11,360
Speaker 2: twenty centimeter sphere. It's called the ORB and they will

560
00:29:11,400 --> 00:29:14,800
Speaker 2: be really all over the world in public spaces, in

561
00:29:15,000 --> 00:29:19,080
Speaker 2: malls and even kind of wonder around cities. It's a

562
00:29:19,160 --> 00:29:22,800
Speaker 2: decentralized model, so it's not we as a project operate

563
00:29:22,880 --> 00:29:25,440
Speaker 2: these but rather you have entrepreneurs and pounders all over

564
00:29:25,440 --> 00:29:27,560
Speaker 2: the world that actually can operate these devices and then

565
00:29:27,640 --> 00:29:30,600
Speaker 2: earn world kinds of very sign up and you as

566
00:29:30,640 --> 00:29:33,640
Speaker 2: a user, you download the app. It's called world App,

567
00:29:33,760 --> 00:29:35,680
Speaker 2: which is the first app that actually allows you to

568
00:29:35,720 --> 00:29:39,000
Speaker 2: do that. When many others will come and you click

569
00:29:39,040 --> 00:29:41,040
Speaker 2: on a map, you say I want to verify. Now

570
00:29:41,120 --> 00:29:43,280
Speaker 2: you go in front of one of those devices and

571
00:29:43,440 --> 00:29:46,000
Speaker 2: you receive your world ID, which then lets you verify

572
00:29:46,080 --> 00:29:50,800
Speaker 2: online with whoever integrates it in the future.

573
00:29:52,320 --> 00:29:56,080
Speaker 1: Sam Outman is one of the founders of this initiative

574
00:29:56,280 --> 00:29:59,320
Speaker 1: and world ID day to day, what role does he

575
00:29:59,480 --> 00:30:03,680
Speaker 1: play you and he separating your time and your duties.

576
00:30:05,800 --> 00:30:08,680
Speaker 2: Sam is very clearly focused on open AI, given he's

577
00:30:08,760 --> 00:30:10,520
Speaker 2: the CEO of open I and I'm the CEO of

578
00:30:10,640 --> 00:30:14,840
Speaker 2: tools Freemenity. However, he is a cool founder here so

579
00:30:15,720 --> 00:30:20,200
Speaker 2: all important initiatives. He's obviously very over off. If there's

580
00:30:20,240 --> 00:30:24,240
Speaker 2: work streams that really touch him he's involved with and otherwise,

581
00:30:24,440 --> 00:30:26,680
Speaker 2: involvement changes a week do week depending on what we

582
00:30:26,840 --> 00:30:31,959
Speaker 2: actually work on, like is it mostly product or engineering focused,

583
00:30:32,000 --> 00:30:35,200
Speaker 2: he's less involved. If it's let's say a hunder as

584
00:30:35,240 --> 00:30:38,840
Speaker 2: he's much more involved. That really depends on what is

585
00:30:38,920 --> 00:30:40,400
Speaker 2: happening in the business day to day.

586
00:30:41,120 --> 00:30:44,160
Speaker 8: Now, I'm kind of curious here. We talked about the

587
00:30:44,480 --> 00:30:47,480
Speaker 8: Kenyan government's reaction to World Coin more recently at the

588
00:30:47,520 --> 00:30:50,960
Speaker 8: start of this interview. I'm wondering if you are working

589
00:30:51,000 --> 00:30:53,880
Speaker 8: with the Kenyan government to address some of the concerns

590
00:30:53,920 --> 00:30:56,880
Speaker 8: that they may have, given how important the market was

591
00:30:57,240 --> 00:30:58,960
Speaker 8: earlier on in the project.

592
00:31:00,800 --> 00:31:05,160
Speaker 2: Yes, we work with the government, with actually multiple government

593
00:31:05,240 --> 00:31:09,920
Speaker 2: bodies to resolve all the open uncertainties or questions that

594
00:31:10,320 --> 00:31:15,040
Speaker 2: there are. Certainly that the campus spike in demand that

595
00:31:15,200 --> 00:31:18,160
Speaker 2: we saw last week was very, very surprising, So we

596
00:31:18,280 --> 00:31:21,960
Speaker 2: really hope that we can get back to delivering the

597
00:31:22,080 --> 00:31:25,720
Speaker 2: actual product in Kenya. However, of course, we will comply

598
00:31:25,880 --> 00:31:28,840
Speaker 2: with the government and all the questions that might arise

599
00:31:28,920 --> 00:31:32,440
Speaker 2: and work with all the regulators that are important to

600
00:31:32,480 --> 00:31:36,280
Speaker 2: do so. So we stopped operating in Kenya until that

601
00:31:36,480 --> 00:31:40,000
Speaker 2: is the fact, and we hope that we can resume

602
00:31:40,400 --> 00:31:41,840
Speaker 2: operations really soon.

603
00:31:42,080 --> 00:31:44,840
Speaker 8: Now, how do you address cod security concerns as well?

604
00:31:45,000 --> 00:31:47,960
Speaker 8: Recognizing that there were worries about stolen creventionals when it

605
00:31:48,040 --> 00:31:51,239
Speaker 8: came to world ID earlier on black market sales. Are

606
00:31:51,320 --> 00:31:54,080
Speaker 8: these things that you are working and find a way

607
00:31:54,160 --> 00:31:55,760
Speaker 8: to prevent in the future.

608
00:31:57,520 --> 00:32:02,840
Speaker 2: Yes, they actually are not surprising. So essentially, first of all,

609
00:32:03,280 --> 00:32:06,480
Speaker 2: let's explain what we're actually talking about here and what

610
00:32:06,720 --> 00:32:10,160
Speaker 2: was reported on. What was reported on is that users

611
00:32:10,960 --> 00:32:14,600
Speaker 2: in countries where let's say Worldquin is not available China,

612
00:32:15,520 --> 00:32:18,200
Speaker 2: by accounts from users where world quin is available let's

613
00:32:18,200 --> 00:32:21,320
Speaker 2: say Portocoal or a robi And what that actually means

614
00:32:21,360 --> 00:32:23,760
Speaker 2: is not you do not sell you biometric data or

615
00:32:23,800 --> 00:32:26,400
Speaker 2: anything like that. That I think that was one of

616
00:32:26,440 --> 00:32:29,320
Speaker 2: the major misunderstandings that it's very important to clarify. But

617
00:32:29,560 --> 00:32:33,240
Speaker 2: rather you sell your login credentials. So let's say email

618
00:32:33,240 --> 00:32:37,240
Speaker 2: address and your password. Let's say that's the best analogy

619
00:32:37,360 --> 00:32:42,800
Speaker 2: to kind of normal use cases, and that is not

620
00:32:43,440 --> 00:32:46,320
Speaker 2: even in midterm, it's not a concern because as a user,

621
00:32:46,400 --> 00:32:48,640
Speaker 2: you can just recover your account. You can go back

622
00:32:48,640 --> 00:32:51,280
Speaker 2: to an ORB and recover your account. And essentially what

623
00:32:51,400 --> 00:32:54,280
Speaker 2: that means is that the other party that acquired the

624
00:32:54,320 --> 00:32:58,200
Speaker 2: account basically acquired something that will turn out to be

625
00:32:58,320 --> 00:33:04,840
Speaker 2: worthless because the credentials words just start wrooking, and so

626
00:33:05,200 --> 00:33:08,600
Speaker 2: this is not an actual medium to long term concern

627
00:33:09,400 --> 00:33:12,760
Speaker 2: and privacy from the user is not compromising anyfore.

628
00:33:14,160 --> 00:33:17,280
Speaker 1: All right, Alex Blaniir of world Coin, Bloomberg Shnali Bassek,

629
00:33:17,760 --> 00:33:20,840
Speaker 1: thanks to you both. Coming up on Bloomberg Technology. We're

630
00:33:20,840 --> 00:33:22,800
Speaker 1: going to speak to the CEO of Portage about the

631
00:33:22,880 --> 00:33:27,360
Speaker 1: state of fundraising in Silicon Valley. Today's VC spotlight focus

632
00:33:27,800 --> 00:33:30,680
Speaker 1: on fintech as we go to break watching shares of

633
00:33:30,880 --> 00:33:36,520
Speaker 1: micro Strategy down around seven percent in the session, the

634
00:33:36,600 --> 00:33:40,200
Speaker 1: leadership of that company giving some pretty consistent long term

635
00:33:40,400 --> 00:33:44,080
Speaker 1: bullish outlook on bitcoin, which of course underpins quite a

636
00:33:44,200 --> 00:33:45,440
Speaker 1: large chunk of their balance sheet.

637
00:33:45,920 --> 00:33:47,440
Speaker 2: This is Bloomberg.

638
00:33:58,760 --> 00:34:01,560
Speaker 1: A story in private markets we're tracking. Charles Lee, the

639
00:34:01,640 --> 00:34:04,479
Speaker 1: former head of Hong Kong's Stock Exchange, has raised four

640
00:34:04,560 --> 00:34:07,000
Speaker 1: hundred and fifty eight million in a Series C funding

641
00:34:07,120 --> 00:34:10,400
Speaker 1: round for his new company, Microconnect. The company is a

642
00:34:10,480 --> 00:34:14,480
Speaker 1: platform to link international capital to small businesses in China.

643
00:34:14,840 --> 00:34:17,800
Speaker 1: The firm announce the funding with participation from new and

644
00:34:18,000 --> 00:34:21,759
Speaker 1: existing investors in Europe, North America, the Middle East and

645
00:34:22,040 --> 00:34:25,680
Speaker 1: in Greater China. All right, joining us now, Adam. Firstly,

646
00:34:26,080 --> 00:34:31,040
Speaker 1: Portage ceo Port's Capital Solutions delivers flexible equity capital solutions

647
00:34:31,320 --> 00:34:34,680
Speaker 1: and strategic resources to help public and private later stage

648
00:34:34,760 --> 00:34:40,160
Speaker 1: fintech and financial services businesses. It's our daily Venture Spotlight segment. Adam,

649
00:34:40,200 --> 00:34:42,960
Speaker 1: good morning to you from San Francisco. Welcome to the program.

650
00:34:44,040 --> 00:34:45,160
Speaker 2: Good to be back on. Thanks.

651
00:34:46,200 --> 00:34:50,000
Speaker 1: So there's this idea we've been talking about VC Spotlight

652
00:34:50,400 --> 00:34:53,080
Speaker 1: that if you look at the backward looking data in

653
00:34:53,160 --> 00:34:57,239
Speaker 1: twenty twenty three, activity broadly for venture backed startups has

654
00:34:57,320 --> 00:34:59,719
Speaker 1: dropped off. But if I go on Bloomberg dot com,

655
00:35:00,239 --> 00:35:01,839
Speaker 1: go on replays of this show and I look at

656
00:35:01,840 --> 00:35:05,239
Speaker 1: the headlines lots of people closing funds and lots of

657
00:35:05,320 --> 00:35:08,520
Speaker 1: companies raising money, what is your on the ground take

658
00:35:08,600 --> 00:35:11,040
Speaker 1: of what's happening right now from an activity perspective.

659
00:35:12,400 --> 00:35:14,840
Speaker 10: So, for certainly, we had a false down in Q

660
00:35:15,120 --> 00:35:17,520
Speaker 10: one where we felt things were coming back and then

661
00:35:17,640 --> 00:35:21,080
Speaker 10: we got slammed by SVV and all the consequences.

662
00:35:20,440 --> 00:35:23,120
Speaker 11: Related to it. I think Q two will prove to

663
00:35:23,239 --> 00:35:27,080
Speaker 11: be the low. I think anecdotically you're right.

664
00:35:27,840 --> 00:35:32,440
Speaker 10: What we're seeing ourselves and with my colleagues across the

665
00:35:32,520 --> 00:35:35,640
Speaker 10: venture and growth markets is things are really picking up.

666
00:35:35,680 --> 00:35:39,800
Speaker 10: I don't think we've been busier in twelve to eighteen

667
00:35:39,880 --> 00:35:43,600
Speaker 10: months from terms of perspective term sheets that we've gotten,

668
00:35:43,719 --> 00:35:45,360
Speaker 10: market deals that we're closing.

669
00:35:45,520 --> 00:35:47,959
Speaker 11: So it does feel a lot better.

670
00:35:48,520 --> 00:35:50,960
Speaker 10: I think will be much more comfortable if we have

671
00:35:51,640 --> 00:35:54,600
Speaker 10: better visibility on where the FED lies in the fall.

672
00:35:54,680 --> 00:35:58,680
Speaker 11: But absolutely the sentiment in the market is much stronger.

673
00:36:00,120 --> 00:36:03,840
Speaker 1: Firm is focused largely in fintech and financial services, and

674
00:36:04,000 --> 00:36:08,440
Speaker 1: you reference the volatility around Silicon Valley Banks collapsed. His

675
00:36:08,760 --> 00:36:14,480
Speaker 1: interest in fintech disruption of traditional banking carried on into

676
00:36:14,560 --> 00:36:17,160
Speaker 1: the second half of this year based on what happened

677
00:36:17,200 --> 00:36:18,200
Speaker 1: with Silicon Valley Bank.

678
00:36:19,719 --> 00:36:22,160
Speaker 10: Yeah, I think that the fintech market as a segment

679
00:36:22,239 --> 00:36:25,720
Speaker 10: within tech definitely has been hit the most, and understandably,

680
00:36:26,320 --> 00:36:29,640
Speaker 10: I think there was new business models that people underwrote

681
00:36:29,680 --> 00:36:33,120
Speaker 10: that haven't panned out, So, you know, I think rightfully

682
00:36:33,239 --> 00:36:35,040
Speaker 10: fintech was hit the most.

683
00:36:35,480 --> 00:36:39,160
Speaker 11: But the strongest companies in the market are doing really well.

684
00:36:39,160 --> 00:36:42,840
Speaker 10: If we look at our own portfolio, well Simple or Albert,

685
00:36:43,200 --> 00:36:45,840
Speaker 10: which are directed consumer businesses, they've never been stronger.

686
00:36:45,920 --> 00:36:47,319
Speaker 11: They're continuing to.

687
00:36:47,360 --> 00:36:48,040
Speaker 2: Have great growth.

688
00:36:48,160 --> 00:36:52,000
Speaker 10: More importantly, they're profitable and their customer acquisition costs are

689
00:36:52,120 --> 00:36:53,400
Speaker 10: really contracting us.

690
00:36:53,400 --> 00:36:55,200
Speaker 11: There's just less competition in the market.

691
00:36:56,880 --> 00:37:00,120
Speaker 1: So question for an investment you focused on fintech and

692
00:37:00,239 --> 00:37:04,440
Speaker 1: financial services, what is your attitude towards AI and how

693
00:37:04,520 --> 00:37:06,920
Speaker 1: that fits in with your existing portfolio companies.

694
00:37:08,320 --> 00:37:11,960
Speaker 10: So first and foremost, you know, across our portfolio, we're

695
00:37:12,040 --> 00:37:13,839
Speaker 10: focused on how do we take costs out of our

696
00:37:13,920 --> 00:37:19,239
Speaker 10: business businesses. There's huge opportunities within your engineering stack. There's

697
00:37:19,320 --> 00:37:24,239
Speaker 10: huge opportunity in terms of customer service and you know,

698
00:37:24,480 --> 00:37:30,200
Speaker 10: operating leverage growth is you know, going to be significant

699
00:37:30,320 --> 00:37:34,759
Speaker 10: because of successful implementation of AI, and that's where we're

700
00:37:35,320 --> 00:37:39,720
Speaker 10: going to be focused, you know, in the early stages.

701
00:37:40,200 --> 00:37:42,360
Speaker 10: I think ultimately there's the opportunities to invest in the

702
00:37:42,400 --> 00:37:46,280
Speaker 10: AI companies themselves. But right now, you know, the tooling

703
00:37:46,880 --> 00:37:49,640
Speaker 10: that's available for free out in the market is the

704
00:37:49,719 --> 00:37:51,759
Speaker 10: best advantage that we can use, and it's within our

705
00:37:51,800 --> 00:37:52,640
Speaker 10: existing portfolio.

706
00:37:54,239 --> 00:37:57,680
Speaker 1: When a potential portfolio company of founders sits in front

707
00:37:57,719 --> 00:38:00,320
Speaker 1: of you, do you want to hear them pay that

708
00:38:00,400 --> 00:38:04,480
Speaker 1: they're going after the big banks and their business or

709
00:38:04,600 --> 00:38:06,920
Speaker 1: do you want to have them have something more focused,

710
00:38:07,000 --> 00:38:09,080
Speaker 1: more niche that isn't yet in the marketplace.

711
00:38:11,040 --> 00:38:12,279
Speaker 4: We want to hear about.

712
00:38:14,120 --> 00:38:17,120
Speaker 10: It is that a specific segment is really going to

713
00:38:17,160 --> 00:38:20,880
Speaker 10: love their product and they're addressing a specific issue that

714
00:38:21,000 --> 00:38:24,160
Speaker 10: that segment's facing. So it's not necessarily where are we

715
00:38:24,360 --> 00:38:29,080
Speaker 10: taking customers from, it's where they underserved and why are

716
00:38:29,160 --> 00:38:32,840
Speaker 10: you going to serve them better quickly?

717
00:38:32,880 --> 00:38:36,040
Speaker 1: Adam, final question, where's the talent right now in fintech?

718
00:38:36,160 --> 00:38:37,200
Speaker 1: Geographically speaking?

719
00:38:38,800 --> 00:38:41,360
Speaker 11: That is a great question. I think it's everywhere.

720
00:38:42,200 --> 00:38:46,040
Speaker 10: It's a wonderful part about this distributed workforce. You know,

721
00:38:46,400 --> 00:38:50,040
Speaker 10: we have portfolio companies that have employees all the way

722
00:38:50,080 --> 00:38:55,960
Speaker 10: from Dubai to India to New York to your regional

723
00:38:56,040 --> 00:38:59,279
Speaker 10: places in the United States, and Canada is becoming a.

724
00:38:59,320 --> 00:39:00,239
Speaker 11: Greater hubb as well.

725
00:39:00,320 --> 00:39:03,840
Speaker 10: So I think it's a great time to be building

726
00:39:03,920 --> 00:39:07,480
Speaker 10: companies because talent is everywhere, and in a distributed world,

727
00:39:08,440 --> 00:39:09,759
Speaker 10: they're excited to work for him.

728
00:39:10,880 --> 00:39:11,000
Speaker 5: You know.

729
00:39:11,120 --> 00:39:13,799
Speaker 1: The Canada Talent conversation is definitely one for another show,

730
00:39:13,880 --> 00:39:25,840
Speaker 1: Adam Fleski. The portage thank you so much a viral

731
00:39:26,000 --> 00:39:29,560
Speaker 1: story we continue to watch. Yesterday, we reported that YouTube

732
00:39:29,600 --> 00:39:33,680
Speaker 1: style mister bast sued his ghost kitchen business partner Virtual Dining,

733
00:39:34,040 --> 00:39:37,280
Speaker 1: saying the company's sacrifice quality in its bid for rapid

734
00:39:37,320 --> 00:39:41,480
Speaker 1: expansion well today. Virtual Dining has responded, saying, quote, the

735
00:39:41,600 --> 00:39:45,200
Speaker 1: complaint is riddled with false statements and inaccuracies and a

736
00:39:45,320 --> 00:39:49,920
Speaker 1: thinly veiled attempt to distract from mister Donaldson's and Beasts investments,

737
00:39:50,000 --> 00:39:53,920
Speaker 1: breaches of the agreements between the parties. It is a

738
00:39:54,040 --> 00:39:56,759
Speaker 1: story we continue to monitor and bring the last on

739
00:39:56,840 --> 00:40:00,680
Speaker 1: elsewhere and going viral. Hollywood strikes are still going this time.

740
00:40:00,920 --> 00:40:03,239
Speaker 1: The Writers Guild of America sent an email to its

741
00:40:03,320 --> 00:40:06,040
Speaker 1: members saying that the head of the Alliance of Motion

742
00:40:06,200 --> 00:40:10,000
Speaker 1: Picture and Television Producers requested a meeting on Friday to

743
00:40:10,120 --> 00:40:13,800
Speaker 1: discuss resuming contract talks that according to the Associated Press,

744
00:40:14,120 --> 00:40:16,800
Speaker 1: it was not immediately known whether a similar message was

745
00:40:16,840 --> 00:40:22,040
Speaker 1: sent to union leaders for Hollywood actors. That does it

746
00:40:22,400 --> 00:40:25,880
Speaker 1: for this edition of Bloomberg Technology from here in San Francisco,

747
00:40:26,360 --> 00:40:28,520
Speaker 1: don't forget. You can recap everything in the show on

748
00:40:28,600 --> 00:40:30,880
Speaker 1: our podcast. I know many of you that listen to

749
00:40:30,880 --> 00:40:33,960
Speaker 1: Bloomberg Technology do wherever you get your podcasts. We're on Apple,

750
00:40:34,080 --> 00:40:36,440
Speaker 1: We're on Spotify, we're on iHeart, and of course we

751
00:40:36,560 --> 00:40:40,359
Speaker 1: published the podcast to all of the Bloomberg platforms. From

752
00:40:40,400 --> 00:40:42,600
Speaker 1: here in San Francisco. There is still so much to

753
00:40:42,680 --> 00:40:47,200
Speaker 1: come this earning season here on Bloomberg Technology. This is

754
00:40:47,239 --> 00:40:47,759
Speaker 1: Bloomberg