Speaker 1: From the heart of where innovation, money and power callive
Speaker 1: in Silicon Valley and beyond. This is Bloomberg Technology with
Speaker 1: Emily Jay. I'm Caroline Hyde in New York. I'm in
Speaker 1: Firmili Chang. This is Bloomberg Technology coming up in the
Speaker 1: next hour. Netflix kicks off big tech earnings Tuesday, followed
Speaker 1: by Tesla and of course Snap. How low is the
Speaker 1: bar already set this quarter? And will stocks continue to
Speaker 1: fall even after earnings beats the turnaround today? Of course,
Speaker 1: plus Kanye West or years is now known by the
Speaker 1: social media platform that is embraced by conservatives who departed
Speaker 1: Twitter over allegations of political censorship. We're talking with the
Speaker 1: CEO of Parlor about the deal and Texas needs more
Speaker 1: details from ft X and Sam mcmun Freed's deal to
Speaker 1: buy Voyages assets will have more on the investigation into
Speaker 1: the cryptomogil First and foremost, let's have a talk a
Speaker 1: little bit more about well the on again, off again,
Speaker 1: risk on, risk off sort of violent moves we see
Speaker 1: in the market and whether any of the valuations are
Speaker 1: currently at a buying opportunity. Dan morganam piece to say
Speaker 1: is with us Sonova's trust portfolio manager Dan, before we
Speaker 1: get into the integrity of the earnings and what you
Speaker 1: expect just at these levels the whipsawing we do see
Speaker 1: day in day out. Are you ultimately thinking that the
Speaker 1: erosion in value does mean that we're some sort of
Speaker 1: buying point in growth stocks, Well, Caroly, I don't know
Speaker 1: if we can put the flag in the sand and
Speaker 1: saying we're a buying point, but just kind of reiterate
Speaker 1: where you're talking about earlier. I mean, going into this
Speaker 1: upcoming third quarter, the consensus right now is calling for
Speaker 1: the overall technology sector to drop and earnings by about
Speaker 1: seven percent. The semiconductors, which we've talked about before with
Speaker 1: and Video and Micron last couple of weeks, that's expect
Speaker 1: to drop fourteen percent. So I think the expectations are
Speaker 1: so low that if they get any growth out of
Speaker 1: any of the fang stocks, including Netflix, even as top
Speaker 1: line growth, I think people would be pretty happy. So
Speaker 1: but I still think we've got to work through these
Speaker 1: FED increases before we can draw the line the sand
Speaker 1: and say Okay, here's the inflection point we can move
Speaker 1: on and start feeling really positive about tech. Interesting, So
Speaker 1: sort of the macro dictates the micro at the moment,
Speaker 1: but talk to us about the micro took to us
Speaker 1: that's informast about Netflix and kicks off. What are you
Speaker 1: expecting any sort of steer on on resilience from the
Speaker 1: consumer right now? We have to bear in mind, Caroline,
Speaker 1: the Netflix has reported two consecutive quarters of negative subscriber growth.
Speaker 1: Coming into this quarter, we're looking for a little over
Speaker 1: a million new subscribers. We know they're talking about going
Speaker 1: to a new platform in terms of advertising revenue. How's
Speaker 1: that going to affect them? They've been working on their
Speaker 1: password sharing issues. I think the big bogey Caroline, will
Speaker 1: be honest with the going this quarter on Netflix is
Speaker 1: do you know what consensus is for the fourth quarter?
Speaker 1: Looking for war million new subscribers? To me, that seems
Speaker 1: a little bit high. Yeah, yeah, notable that we're still
Speaker 1: being very British perhaps so there's news advertising models and
Speaker 1: they're like, I'm interested in what you think of of Tesla,
Speaker 1: which of course in many ways is so retail dictated
Speaker 1: and has been very prone to just being moved as
Speaker 1: a stock on sentiment. But what do you like to
Speaker 1: see in terms of a steer on growth on a
Speaker 1: particularly as we see the more competition come in Mercedes
Speaker 1: for example, the news there today, Caroline, we don't follow
Speaker 1: Tesla unfortunately because it is an auto stock, it doesn't
Speaker 1: fit in our bracket in terms of technology. So I
Speaker 1: really unfortunately, I don't want have much to add. Apologies
Speaker 1: for that been a bit of a misfi fire and steer.
Speaker 1: Thank you for bearing with me. Let's talk a little
Speaker 1: bit though about where you are go and me guiding
Speaker 1: a like IBM, for example, this is a company that
Speaker 1: has been relatively equisitive, relatively in growth mode. But are
Speaker 1: you likely to see the corporate side of demands stay resolute, yeah, Caroline.
Speaker 1: So it's interesting because they had a pretty good number
Speaker 1: on the last quarter of their second quarter. Coming into
Speaker 1: this third quarter, there are concerns about how wage growth
Speaker 1: is going to impact their consulting business. They're expected to
Speaker 1: take on about an eight percentage point uh negative impact
Speaker 1: from from currency um But if you look at their model,
Speaker 1: it's kind of interesting because they generate about seventy their
Speaker 1: business from software and consulting, and about fifty of their
Speaker 1: revenues are reoccurring, so they are very high cash flow.
Speaker 1: Stock would be something your listeners could look at. The
Speaker 1: dividend is over five pent um and it's only down
Speaker 1: thirteen percent year to date, where the SMP is down
Speaker 1: twenty five. So look at IBM. A is a value
Speaker 1: stock with very good cash flow. What has been so
Speaker 1: interesting is over the last couple of earning seasons, Snap
Speaker 1: has almost dictated sentiment, leading them into the matters, into
Speaker 1: the other Googles and the likes that are focused on
Speaker 1: advertising as a model. We've seen them become a sort
Speaker 1: of bell weather. Are you expecting them to be that
Speaker 1: this week? And to the upside of the town side
Speaker 1: where you're right, Caroline. Last quarter they came out and
Speaker 1: a acted trading with Twitter, with Google, with Amazon. Everybody
Speaker 1: followed them Meta. We have to remember in the second
Speaker 1: quarter revenues room only up thirty percent, and they guided
Speaker 1: for third quarter revenues to be flat. But since then
Speaker 1: things have improved a little bit. They're actually looking for
Speaker 1: revenues to grow six percent. They've had challenges, as you know, Caroline,
Speaker 1: in terms of the change in privacy with Apple. Uh.
Speaker 1: They've also had competitive issues with TikTok. But you're right, Caroline,
Speaker 1: their company that's going to dictate what happens with Alphabet
Speaker 1: Twitter and Meta in terms of advertising revenue online and
Speaker 1: how that health of that business is going. And of
Speaker 1: course you have Twitter exposure as well. Is Twitter going
Speaker 1: to be anything about the story of M and A
Speaker 1: or are you're actually going to be really focused on fundamentals, Caroline.
Speaker 1: Twitter is a tough company because they don't seem to
Speaker 1: ever grow their subscriber base. It's been very flat. You've
Speaker 1: got all the hype about Elon Musk wanting to buy
Speaker 1: the company and change it around, but if you look
Speaker 1: at their core growth trajectory, it's been very benign compared
Speaker 1: to let's say a Snap or a Meta or an
Speaker 1: Alphabet over let's say the last five years. So they
Speaker 1: still have a lot of challenges, not only in the
Speaker 1: overall ad spend market, which is expected slow this year,
Speaker 1: only at about six from thirty six percent last year,
Speaker 1: but they have issues in terms of how they're structured.
Speaker 1: Their average user of time is only about forty five
Speaker 1: seconds or about two minutes, compared to Facebook or Meta
Speaker 1: that was thirty minutes. To give you an idea of
Speaker 1: how long people stay on it and actually look at it,
Speaker 1: it's usually a quick interchange. So that's another challenge. For
Speaker 1: Twitter going forward. So it's gonna be a tough quarter
Speaker 1: I would expect for them. Um, we want to thank
Speaker 1: you so much for giving us your expertise, your years
Speaker 1: of experience and managing money and getting into the right
Speaker 1: stocks and nervous trust a force Port Phonio manager there,
Speaker 1: We thank him. Yeah, formerly known as Kanye West has
Speaker 1: a green need to buy Parlor. Of course, that's a
Speaker 1: social media platform that it's been embraced by conservatives who
Speaker 1: perhaps have left Twitter over allegations of political censorship. Parliament
Speaker 1: Technology CEO that's a parent company, Odd Parlor is George Farmer.
Speaker 1: He oversees currently the happenings joining us now for the
Speaker 1: future under Yeah, first and foremost, what does he bring
Speaker 1: you because you're still gonna be doing the underlying technology
Speaker 1: if I'm right, So what does he bring in leadership?
Speaker 1: In ownership? Yeah? Well thanks Caroline voving me on. I
Speaker 1: think it brings a vision to the platform that as
Speaker 1: much needed. You've seen the rise of personalities surrounding social
Speaker 1: media apps, whether it be Elon Musk and Twitter or
Speaker 1: Donald Trump and truth Social I think that Parlor very
Speaker 1: much looks to a charismatic leader, and I think that
Speaker 1: we're in year, we have one who is going to
Speaker 1: take the platform forward in terms of vision and direction,
Speaker 1: both creatively from a marketing perspective, from an outreach perspective.
Speaker 1: I think he's going to bring a lot of necessary
Speaker 1: talent to the platform. We're excited to work with him.
Speaker 1: Um and of course it puts us back on the map,
Speaker 1: which is, you know, something that we've long aspired to
Speaker 1: be back on. Were you worried about not being on
Speaker 1: the map, had you been losing members or users? Well,
Speaker 1: I think it's fair to say that the competitive landscape
Speaker 1: has become a lot more competitive. When Parlia was founded
Speaker 1: in it really was the only kind of what I
Speaker 1: quote sort of free speeches of business social media app
Speaker 1: around And of course in the intervening forward to five years,
Speaker 1: that landscape has become that much a bit more competitive.
Speaker 1: It needs the leadership of a charismatic personality, you know,
Speaker 1: much as I like to complement myself as sort of
Speaker 1: being a charismatic leader, it's it's just a different game
Speaker 1: when it comes to outreach and presence in existing in
Speaker 1: existing social media app So you know, kran Years obviously
Speaker 1: is presence on Instagram and Twitter is enormous. His outreaches
Speaker 1: is global and as a result, this puts us into
Speaker 1: a position where he can help acceller at the brand
Speaker 1: growth and he can grow the platform into something that
Speaker 1: he wants it to be as well as as well
Speaker 1: as compliment our existing technology infrastructure. What does he think
Speaker 1: the platform and the brand currently is? How long has
Speaker 1: he been a user? How old did this all unfold? Well,
Speaker 1: it came about quite quickly. I would say the deal
Speaker 1: really took shape in the last couple of weeks, um.
Speaker 1: And the reason being is because obviously he himself has
Speaker 1: fallen victim to the cancel culture narrative which deep platformed
Speaker 1: him from Twitter and Instagram. Um. He he has been
Speaker 1: a he has been a proponent of free speech for
Speaker 1: a very long time. But I think that the scales
Speaker 1: kind of fell from his eyes in regards to big
Speaker 1: tech censorship in the last in the last couple of weeks,
Speaker 1: And that was really when the conversation began in earnest
Speaker 1: And really the deal took shape in about the last week.
Speaker 1: And you know, we're putting together obviously the final touches.
Speaker 1: We haven't yet concluded the deal. As I mentioned in
Speaker 1: the press release, it should be concluded in Q. Four.
Speaker 1: But we were queen keen to get this statement out
Speaker 1: to give a statement of intent of whether the plat
Speaker 1: forms going. I'm interested. Of course he has been de
Speaker 1: platformed because of accusations of anti Semitic posts. How do
Speaker 1: you ensure that you have the right line of what's
Speaker 1: free speech and what's hate speech? Sure so, I I
Speaker 1: think philosophically, I take that back to a slightly higher question,
Speaker 1: which is who is in the position to make that decision? Um?
Speaker 1: And my question always in response to that is if
Speaker 1: I'm making the decision, then what right do I have
Speaker 1: to make the decision. Parlor has community guidelines which outlie
Speaker 1: which outlaws on the platform pornography, financial dogs, seeing gore,
Speaker 1: and violence, and of course those are stripped from the
Speaker 1: platform when they're put up, and we also have a
Speaker 1: very rigorous spot determinant which removes thoughts from the platform
Speaker 1: as well. Beyond that, of course, Parlor is a free
Speaker 1: speech side, and we believe in maximum allowable free speech.
Speaker 1: We believe in various studies which have proven that more
Speaker 1: speech actually he cures bad speech in some ways. So
Speaker 1: to show to show a bad idea a good idea
Speaker 1: is the best way to cure the bad idea in terms,
Speaker 1: and that's kind of what we believe in terms of
Speaker 1: ideas of this deal. It's been noted by many that
Speaker 1: your wife, Candace Owens is in some way, you know,
Speaker 1: than someone who has been helping see well. Certainly Kanye
Speaker 1: West himself came to her movie, has been talking about
Speaker 1: some of the things she's shown a light on my
Speaker 1: I'm interested as to how much she had played a
Speaker 1: part and role in the in the deal in some way.
Speaker 1: I mean, my wife is an integral part of my life.
Speaker 1: Be difficult to divorce everything that we do from each other. Um. Look,
Speaker 1: I mean we we're a team. And for sure, she
Speaker 1: obviously has a relationship with Kanye. They talked very extensively
Speaker 1: about culture. You know, she's deep in the trenches on
Speaker 1: various cultural aspects, including of course fine to his fashion
Speaker 1: show Harris a couple of weeks ago. Um. And so
Speaker 1: you know, I wouldn't have had my introduction to to
Speaker 1: year if it wasn't for her. Um. You know, the
Speaker 1: negotiation of the deal itself, of course, is completely left
Speaker 1: to me, and you know, I'm I'm more of that
Speaker 1: aspect of our life. The technology aspect, the business aspect.
Speaker 1: She has her own business ventures which are highly successful.
Speaker 1: She's a very successful businesswoman in her own rights, and
Speaker 1: so she brought him into the into the conversation. But
Speaker 1: you know, the deal itself was negotiated by me. What
Speaker 1: about deals of the future. We've just seen a tweet
Speaker 1: put out by in a mask, an amusing one, an
Speaker 1: interesting one, I thought, provoking one, but him and Yeah
Speaker 1: becoming some sort of team in some way with him
Speaker 1: as Twitter and Yeah with Parla. What do you make
Speaker 1: of that? Is that a future you'd want for the
Speaker 1: company you built? Yeah? I mean I think that I
Speaker 1: was highly entertained to see that that tweet. Obviously, um, look,
Speaker 1: strategic partnerships on the table absolutely. Um. I said this morning,
Speaker 1: I think in a in a in a comment that
Speaker 1: I gave that we are at the the end of
Speaker 1: the beginning of the start of the patriot economy. Right
Speaker 1: at the end of the beginning of the patriot economy.
Speaker 1: This is I think. I think in the last five
Speaker 1: years you've seen a massive land grab in terms of
Speaker 1: companies launching and trying to take positioning in this space.
Speaker 1: You know, you're now seeing it in banking You're seeing
Speaker 1: it in social media, You're seeing it in payment processing,
Speaker 1: You're seeing it in everything from insurance to coffee, I
Speaker 1: mean to everything in the world. And I think what's
Speaker 1: happening now is that the space has become quite crowded
Speaker 1: and you're going to see consolidation. I think you're potentially
Speaker 1: going to see more M and A in this space, um,
Speaker 1: And I think that's very exciting. Look, the decision is
Speaker 1: now yes, um, you know, and we are excited to
Speaker 1: work with him on that possibility. There's absolutely a possibility
Speaker 1: that he could want to turn the company around and
Speaker 1: and and sell it and make it something part of
Speaker 1: much bigger or in turn he could be looking for
Speaker 1: acquisitions himself. That's a discussion that I have yet to
Speaker 1: have with him. So I think this is very exciting. George,
Speaker 1: appreciate the time. Thank you. George Farmer, Parliament Technologies CEO. Meanwhile,
Speaker 1: of course, women talking about social media the landscape, Peter
Speaker 1: tells we're backing some of those new entrants to the
Speaker 1: conservative social media platform area. And meanwhile, and German startup
Speaker 1: delivering drones to Ukraine just got a big boost from
Speaker 1: one of the Musque's close partners Quantum Systems has received
Speaker 1: sevve million dollars in new funding from investors, including billionaire
Speaker 1: Peter tell. Tel says Quantum Systems is leaps ahead of
Speaker 1: the competition. It's applied at least for two drones to
Speaker 1: support the Ukraine Army coming up. Instacott has last yets
Speaker 1: valuation multiple times this year. Is they coverted unicorn status
Speaker 1: on being wow deemed across at the moment killed in
Speaker 1: the world of big tech. We'll have to work out
Speaker 1: whether Unicorn should really be a name anymore. My next
Speaker 1: guest thinks, so this is Bloomberg. Our next guest says
Speaker 1: that by four we'll have redefined the term you Nicorn
Speaker 1: entering have stalled Winnian era for the tech sector. Greg
Speaker 1: Martin's venture capitalists behind companies including GoPro, hub Spot and
Speaker 1: co founder of Rainmaker Securities, one of the largest platforms
Speaker 1: of trading shares of private tech companies now first and foremost.
Speaker 1: Walk us through before we get to Darwinism. Talk to
Speaker 1: us about why Unicorn maybe the time doesn't make sense. Well, Caroline,
Speaker 1: thank you for having me. You know, if you look
Speaker 1: at the end of one we had over a thousand
Speaker 1: what we call uniform private technology companies that are market
Speaker 1: caps in excess of a billion, which represented about four
Speaker 1: point three trillion of market cap, just unprecedented levels the
Speaker 1: size of companies. Now, certainly there's a lot of great
Speaker 1: companies in that thousand that do deserve to have the
Speaker 1: billion plus market cap and and and those companies will
Speaker 1: go public and be large companies in the public markets someday.
Speaker 1: But a good percentage of them got way out over
Speaker 1: their skis on valuation. And you know, partially because investors
Speaker 1: were chasing yield, they were looking for growth, and they
Speaker 1: were looking for the next snowflake, if you will. Um.
Speaker 1: And the problem is, there are very few companies that
Speaker 1: really can aspire to those kinds of heights. And I
Speaker 1: think that's why we're going to see a lot of
Speaker 1: these companies not not sustained unicorn status in the future.
Speaker 1: Will we see the fading, Do we see more m
Speaker 1: and aid we see what does dolwinisn't look like? For you?
Speaker 1: A Dewinian era in that respect, Well, listen, I think
Speaker 1: I think you will see there are truly companies that
Speaker 1: are of the size and scale and market leadership that
Speaker 1: will go public and they will they will they will
Speaker 1: grow their valuations. I think there are a lot of
Speaker 1: these companies that unfortunately, uh you know, their valuations were
Speaker 1: set very high. Their businesses are still subscale. They were
Speaker 1: they were given a lot of cash to grow, grow, grow,
Speaker 1: and the reality is the growth just isn't there for
Speaker 1: some of these businesses, and I think those businesses will
Speaker 1: struggle um to ever become profitable. And so I think
Speaker 1: for those people, and I think there's a good number
Speaker 1: of companies that are good in that category, they will
Speaker 1: be looking for a home. I think the private private
Speaker 1: financing markets are drying up for some of these companies,
Speaker 1: and so they will be looking for a home. Now.
Speaker 1: The good news is many of them have great products
Speaker 1: and there will there is going to be a very
Speaker 1: vibrant MP and A market I believe in the next
Speaker 1: two years. Okay, M and A. Maybe it'd rather better
Speaker 1: valuations and previously for the buyer at least. I'm interested therefore,
Speaker 1: as the seller and as a talent member in these
Speaker 1: companies that are suddenly eroding their market value. Suddenly, people
Speaker 1: who have been promised certain exits or certain inquidity moments,
Speaker 1: or indeed being paid in chares, How does that look
Speaker 1: like for them. What does this mean for the talent
Speaker 1: going forward? It's a big problem, and you can see
Speaker 1: some companies are being very proactive about that. You know
Speaker 1: INSTATCRT for example, that they just you know, lowered their
Speaker 1: internal valuation yet again UM, which which means the bar
Speaker 1: for an new employee or executive coming in as much
Speaker 1: lower UM. If the bar is too high than the
Speaker 1: your options or shares or whatever you get when you
Speaker 1: join the company are always going to be out of
Speaker 1: the money. So I think we're going to see a
Speaker 1: lot of repricing of internal options in order to keep
Speaker 1: employee morale up, because the last thing you want to
Speaker 1: be doing is working for a company that's worth ten
Speaker 1: billion in the in the with your options it's only
Speaker 1: worth a billion, because when you're there for equity, you
Speaker 1: want to make sure your equity has values. So I
Speaker 1: think that's something we're going to see a lot more
Speaker 1: of what instacart did today. Uh, do you see future
Speaker 1: unicorns being born in this era? Many people feel that
Speaker 1: sort of in the toughest of times, great stars are
Speaker 1: born out of them. Do you see that this could
Speaker 1: be an era of ingenuity of innovation or is this
Speaker 1: going to be one of stealth and and lower growth.
Speaker 1: For the timing. I absolutely think that we will have
Speaker 1: many new unicorns that are born during this period. I mean,
Speaker 1: one of the things that covid you really accelerated was
Speaker 1: the adoption of new technology, and a lot of the
Speaker 1: incommon players were left behind. A lot of the legacy
Speaker 1: technology is behind the times, and so it's really created
Speaker 1: an opening for innovative entrepreneurial businesses to sort of seize
Speaker 1: the day and seize the moment and start businesses that
Speaker 1: that sort of are the path of progress, the next
Speaker 1: generation of where technology is going. So I actually think
Speaker 1: now is a good time to start a company. I
Speaker 1: just think we won't see as many unicorns as we
Speaker 1: did in one and let's he even get started on
Speaker 1: Decacorn's Greg Martin. We want to thank you so much,
Speaker 1: co founder of Rainmaker Securities, talking us through his hypothesis
Speaker 1: of where we go for the big company valuations going forward.
Speaker 1: This is Blomberg Technology. I'm Caroline Hyde in New York.
Speaker 1: Let's get back to the markets. Let's get back to
Speaker 1: the chip sector. In particular, Bloemberg were the latest numbers
Speaker 1: in terms of semiconductor delivery times it was interesting, h interesting.
Speaker 1: Lead times for the semi conductor in industry average twenty
Speaker 1: six point three weeks in the month of September. That
Speaker 1: data coming from Susquehanna Financial Group, twenty six point three weeks,
Speaker 1: down four days from the previous month. Four days doesn't
Speaker 1: sound like a lot, but this is actually the biggest
Speaker 1: month or month drop in lead times since the firm
Speaker 1: started recording the data. The lead time, of course, being
Speaker 1: the gap between when an order for a chip is
Speaker 1: placed and when it's delivered. There are still pockets of
Speaker 1: tightness in supply, according to the firm, particularly in micro
Speaker 1: controllers and in automotive specialized chips. But you see that chart,
Speaker 1: we're in very elevated levels. Still, this is still a
Speaker 1: market where supplier is an issue, but at least we're
Speaker 1: now heading in the right direction. At the same time,
Speaker 1: we also hear all these worrying signals Caroline about demand.
Speaker 1: I think, of course, about a m D whose third
Speaker 1: quarter sales estimates missed projections by a billion dollars. We reported,
Speaker 1: according to sources, that Intel is going to be laying
Speaker 1: off thousands of workers because demand for PC chips in
Speaker 1: particular has dropped off so it's gonna be really interesting.
Speaker 1: Has been so much pain in the semi conductor sector,
Speaker 1: at least in the equity market perspective so far in
Speaker 1: two this is a really key earnings period where we
Speaker 1: try and work out what that balance is where the
Speaker 1: demand is disappearing and the supplier is improving, and where
Speaker 1: we net out for an industry that you and I
Speaker 1: have been glued too for good two years now suddenly
Speaker 1: have been Thanks for keeping us up to speed with
Speaker 1: the moves on the day and indeed some of the
Speaker 1: lead times going forward. Let's get back to some of
Speaker 1: the views that's happening in terms of valuations in the
Speaker 1: private part of the market as yet, because let's talk
Speaker 1: venture capital, we want to talk about gender, we want
Speaker 1: to talk about equity within lack thereof, but some steps
Speaker 1: be made forward. Next few Ventures just announced when it
Speaker 1: was closer two on a million dollar new funding around.
Speaker 1: It's got this largest RAYS to date and it's bringing
Speaker 1: on Stephanie Palmia, founding partner of all Rays and of
Speaker 1: course for Mark partner at Uncork as an equal partner.
Speaker 1: She joins me alongside of course the partner Melody Co.
Speaker 1: Both of you now at Next few congratulations on the arering,
Speaker 1: the beefing up of the team, the two hundred million.
Speaker 1: Let's talk first and foremost melody about the two million
Speaker 1: and the opportunities within seed funding, within smaller checks being
Speaker 1: put to work. Is now the right time where you're
Speaker 1: going to see great businesses built. We're pretty excited, you know,
Speaker 1: I think that there's not a better time to be
Speaker 1: investing early stage company at the formation stage. As always,
Speaker 1: we're very excited to partner with founders just at concept stage,
Speaker 1: or founders who begin a little bit of traction post launch.
Speaker 1: And you know, with the new two hundred million under
Speaker 1: commitment across both of our early stage C fund as
Speaker 1: well as the first opportunity fund that we call all Access,
Speaker 1: we really can partner with founders across the entire early
Speaker 1: stage PREC to C spectrum. So we're yes, we're excited.
Speaker 1: And what's so impressive is the previous hundred million investment vehicle.
Speaker 1: You know, you put your money where your mouth is
Speaker 1: in terms of talking about backing diverse founders, and Stephanie,
Speaker 1: I'm sure many ways this experience, this proofpoint was what
Speaker 1: attracted you to joining next few ventures, and I'm interested
Speaker 1: as to how you remain and build on that commitment,
Speaker 1: having of course been one of the key founders over
Speaker 1: at All Rays. Yeah, absolutely. You know, I think at
Speaker 1: the end of the day, diverse teams invest in more
Speaker 1: diverse founders, And you know, I'm really proud of the
Speaker 1: fact that our team at next to you is very representative,
Speaker 1: and we could still be more representative of the what
Speaker 1: we want to see in our industry. And so, you know,
Speaker 1: at the end of day, it was really important to
Speaker 1: me to join a team that not only is diverse itself,
Speaker 1: but also values that in the founders that invests in
Speaker 1: And I think for us, diversity means many things. It
Speaker 1: means background, experience, ethnicity, race, gender, um as well as geography.
Speaker 1: Interested melody on when you see a downturn, how it
Speaker 1: tends to affect women, people of color building businesses when
Speaker 1: you go more macro. When I look at the jobs data,
Speaker 1: for example, very sad lead within the numbers, you're seeing
Speaker 1: women being the first one in, well last one in
Speaker 1: the first one out. We're seeing already the participation rate
Speaker 1: being eroded. Are you worried that in some way people
Speaker 1: start backing away from the commitments they made during one
Speaker 1: to back diverse leaders. Yeah, I think that, you know,
Speaker 1: during times like this, there's definitely a risk of us
Speaker 1: uh going backwards. You know. I think venture as an
Speaker 1: industry is fairly insulated and very relationship driven. So during
Speaker 1: times like this there is um there is a challenge
Speaker 1: of a lot of investors. Hopefully not but a lot
Speaker 1: investors might go back to their inner circles and founders
Speaker 1: that look more pro quoting for proven on paper. So
Speaker 1: you know, I think that's something that we definitely want
Speaker 1: to be conscious of, and you know, hopefully the industry
Speaker 1: at large can't really you know, try to pay extra attention,
Speaker 1: especially during time like this when it's easy to fall
Speaker 1: back to bad habits. Indeed, and always of course Stephanie
Speaker 1: as something was meant to help accelerate bring China light
Speaker 1: on people who called a women who are building great
Speaker 1: businesses and help accelerate their growth. Support them. At this time,
Speaker 1: how are you finding the next exciting investments? Where are
Speaker 1: you looking? You're going to be bicoastal. We've got New
Speaker 1: York offices, San Francisco, But are you looking across the US?
Speaker 1: You're looking globally? How do you find these leaders? Yes,
Speaker 1: I'm really proud to say that we're looking across North
Speaker 1: America and we're you know, tapping obviously into our diverse
Speaker 1: networks that we have within the next few team as
Speaker 1: well as UM. You know, more broadly speaking, you know,
Speaker 1: we we look at the founders that we've backed in
Speaker 1: the past, the folks we co invest with, and we
Speaker 1: have a flexibility to invest, you know, not just in
Speaker 1: the markets in which our offices are based, but yeah,
Speaker 1: like I said, all across North America, and we'll be
Speaker 1: looking for great founders because you really believe that great
Speaker 1: ideas can come from anywhere. And I think what's been
Speaker 1: really interesting is, you know, Next to You has invested
Speaker 1: with this broad geographic focus since its inception. UM However,
Speaker 1: you know, we've certainly been a broader friend in the market,
Speaker 1: you know, in this kind of post COVID environment in
Speaker 1: which companies are being built with more and more distributed teams.
Speaker 1: So it's not surprising to me that we're seeing early
Speaker 1: companies start in more and more places and will continue
Speaker 1: to be an outlet for founders to tap into the
Speaker 1: major funding markets in San Francisco, New York, in Boston
Speaker 1: where we have home offices. Manady is there particular industries
Speaker 1: that attract you at this moment in time, and then
Speaker 1: particular areas or problems you think will become ever more
Speaker 1: evidently need to be fixed in this particular period. You know,
Speaker 1: we talked about the next few we're focused on fixing
Speaker 1: the broken user experiences across a lot of everyday user
Speaker 1: categories and habitual moments where whether it's at work or
Speaker 1: at home where a lot of people spend time. So
Speaker 1: you know, I think there are a lot of interesting
Speaker 1: UM challenges right now. You know, one example can be
Speaker 1: everybody's during a hybrid work by home and into offices,
Speaker 1: So there's a lot of everyday working moments that can
Speaker 1: continue to be redefined and and you know, make Better
Speaker 1: is similarly, there are lots of challenges at home, you know,
Speaker 1: using that same context, and we talked about women earlier.
Speaker 1: You know a lot of working parents and mothers are
Speaker 1: really you know struggling to juggle between um, you know,
Speaker 1: hybrid work and doing things like this on screen, and
Speaker 1: then you know, turn around having to deal with childcare.
Speaker 1: So many last week of a couple of kids coming in.
Speaker 1: So it's still there, it's still on that. Yeah, for sure,
Speaker 1: I love that that you're focusing in on that, and
Speaker 1: I mean, the balance is always real and we're at
Speaker 1: the cold face of it in many ways, Stephanie. I'm
Speaker 1: interested in what the Bay Area has to offer right
Speaker 1: now and whether you're feeling this push full of remote
Speaker 1: people leaving at the moment. Do you feel that you
Speaker 1: sense that are people wanting to build businesses in other
Speaker 1: places than San Francisco? Yeah, I think I think the
Speaker 1: big difference here is the very is still a great
Speaker 1: place to old business, but the barriers to building a
Speaker 1: great startup in terms of access to talent, access to capital,
Speaker 1: that's become more and more distributed. So it's not shocking
Speaker 1: to me that we're seeing more companies built in more
Speaker 1: emerging tech markets. What I do think is true is
Speaker 1: that there's still a tremendous amount of energy here and
Speaker 1: there's still a tremendous amount of dollars both at seed
Speaker 1: but also in follow on dollars. And if you think
Speaker 1: about Melanie and my job as seed investors, you know
Speaker 1: we're writing that first early check into companies, really founders
Speaker 1: who are getting a business off the ground and running.
Speaker 1: But far and away we're not the last check, the
Speaker 1: last capital into these companies, and so really, I think
Speaker 1: the reality is there's a lot of capital concentrated here.
Speaker 1: And again, I think founders are always gonna benefit from
Speaker 1: having one more note, one more access point to that capital.
Speaker 1: And Melodie like, we laugh about all the cameos the
Speaker 1: kids coming in us being in a cold face, but
Speaker 1: we're not. Actually because we're lucky, we're able to afford childcare.
Speaker 1: We are in quote unquote privileged women leading incredible lives.
Speaker 1: And I'm interested is to how you fix problems across
Speaker 1: socioeconomic divides as well as people that problems that affect
Speaker 1: all areas of diversity, whether they are women or people
Speaker 1: of color, but also the socioeconomic variety and inequality that
Speaker 1: we still see in the US. Well, that's that's the
Speaker 1: big job, not just you know. I think we talk
Speaker 1: about this concept. We call it everyday economy. So within
Speaker 1: that term, we think a lot about all different types
Speaker 1: of everyday person. And you know, I think if with
Speaker 1: that framing in mind, we're reminding ourselves every day to
Speaker 1: look for solutions not just for people like you and me,
Speaker 1: but for other different types of everyday user. And I
Speaker 1: think it's also important for the rest of the industry,
Speaker 1: you know, our entire asset class to really think about
Speaker 1: finding solutions, not just for um you know I call
Speaker 1: coastal elites, right, but you know, really truly focusing on
Speaker 1: mass market problems and in leveraging technology to better that.
Speaker 1: We want to thank you both so much for putting
Speaker 1: so much thought across the board in terms of investing
Speaker 1: for good and for diverse endpoints of MELODYO Stephanie Palmery,
Speaker 1: Congratulations on the new fund and indeed on the new
Speaker 1: team building the next few ventures. San Francisco Mayor London
Speaker 1: Breed is preparing her city to move beyond its tech
Speaker 1: dominated landscape, now acknowledging that many remote workers will never
Speaker 1: fully return. So we're just discussing. But he said, quote
Speaker 1: life as we knew it before the pandemic is not
Speaker 1: going to be back. The comments now show a shift
Speaker 1: for Breed, who has spent much of this year working
Speaker 1: to lure people back to their offices as the city's
Speaker 1: return to office rates remain stuck. Coming up, why Texas
Speaker 1: regulators are investigating stand Bank went freed more on that.
Speaker 1: Let's back and it's time now for our daily Crypto report.
Speaker 1: A lot going on as always with f t X,
Speaker 1: but sometime not freed. It's being eyed by Texas right now,
Speaker 1: Blak is here to explain what exactly what paut of
Speaker 1: SPS SINTA agreement and recent doings is Texas looking at.
Speaker 1: It's a great question for right now because it's tied
Speaker 1: to a deal. This is all revealed in the vein
Speaker 1: of their purchase of assets from for your Judgital. The
Speaker 1: Texas regulator is now saying that they shouldn't move forward
Speaker 1: with that one point four billion dollar purchase of those assets,
Speaker 1: and that's partially because of this dispute over whether these
Speaker 1: are securities or not. When you look at the yielding
Speaker 1: assets that are being under f t XS purview here,
Speaker 1: what's interesting is it's not just f t X training,
Speaker 1: it is also sam maigment free that they are looking at.
Speaker 1: But you also have not just a deal in play here,
Speaker 1: but also that classic question about who's overseeing the yield
Speaker 1: products that are under the purview of all of these
Speaker 1: large exchanges that are increasingly getting bigger in this game.
Speaker 1: So interesting, So the White Night hypothesis of some im
Speaker 1: free sort of being put onto the spotlight to allarge
Speaker 1: extent here yeah, and it's worth taking a look at
Speaker 1: what they had to say in response to this. They
Speaker 1: said they have an active application for a license that
Speaker 1: has been pending, and they believe that they're operating fully
Speaker 1: within the bounds of what they can do in the interim.
Speaker 1: I think the other reason this is interesting is because
Speaker 1: you know that f t X has been operating in
Speaker 1: the Bahamas, separately in the US, separately in different jurisdictions
Speaker 1: around the world. And so how does Texas as a
Speaker 1: regulator fall in line with what's happening on the broader
Speaker 1: scale globally as well as with the SEC and c FTC. Okay,
Speaker 1: let's talk about the other regulators that stok about the
Speaker 1: eyeing of three Hours Capital. I mean, what is going
Speaker 1: on there? I understand that is an CFTC issue at
Speaker 1: the moment. Yeah. Interestingly, the SEC and CFTC are looking
Speaker 1: at whether they should have registered in the United States.
Speaker 1: So even if you're operating abroad, and as we know
Speaker 1: that the location of the founders has been under dispute,
Speaker 1: has they've been very hard to reach in the process
Speaker 1: of these bankruptcy filings where they need to be paying
Speaker 1: certain creditors back. You do now have the SEC and
Speaker 1: c f TC coming in and saying that or not
Speaker 1: saying that. These are people familiar with a matter of
Speaker 1: told Bloomberg that they are looking at, in particular whether
Speaker 1: they had violated rules by misleading investors and should have
Speaker 1: been registering in the US in the first place. So
Speaker 1: again that global issue coming into play on how investors
Speaker 1: globally are treated without certain disclosures and regulations. So this
Speaker 1: is instead of certain products being sold here, we're looking
Speaker 1: at the very nature of how Three Arrows had operated
Speaker 1: in itself. Just bring us up to speed with where
Speaker 1: we are in the whole liquidation process. I mean, this
Speaker 1: is never done before, certainly not on this scale. And
Speaker 1: suddenly with these some new types of assets and securities.
Speaker 1: It's interesting when you ask certain people who had been
Speaker 1: interacted with Three Arrows, you have to ask them whether
Speaker 1: they think they'll get their money back in the first place,
Speaker 1: because again, who is owed what and what part of
Speaker 1: the capital structure. This is not your typical debt proceeding
Speaker 1: where there has been the waterfall is not as clear
Speaker 1: as it would be exactly. But Tonio has been appointed
Speaker 1: as an intermediary here to to work on this. But
Speaker 1: again even they have not been able to really access
Speaker 1: the founders in the first place. So how does a
Speaker 1: bankruptcy proceeding happen globally without the founders being able to
Speaker 1: come up to the table? Zoom cam work for everything
Speaker 1: Twitter either Twitter messages is how they've been trying to
Speaker 1: be aged by many a party in this feels quite
Speaker 1: old school. We thank you so much. She's always across
Speaker 1: everything when it comes to crypto, and don't miss putting
Speaker 1: the crypto every Tuesday at one pm Eastern for even
Speaker 1: more of a deep dive. Meanwhile, coming up words of
Speaker 1: warning coming from Chinese President Chooting vowing to speed up
Speaker 1: innovation and air is vital technology self reliance. More on
Speaker 1: what this all means, particularly the chip sector miss a
Speaker 1: bring back Charini's President Chujing Ping pledged his nation will
Speaker 1: prevail in its fight to develop strategically important technology. There's
Speaker 1: underscoring Beijing's concern over a US campaign to separate it
Speaker 1: from cunning edge ship capabilities, because, of course, is all
Speaker 1: at the twentieth Party Conference of the current administration. Let's
Speaker 1: bring in Bloomberg's Debbie Wu for more on this, because
Speaker 1: the great gathering is upon us. The Communist Party over
Speaker 1: in China, big speeches, big push forward as to whether
Speaker 1: or not choojing Ping will indeed maintain control over the
Speaker 1: next ten years as well. But in the here and now,
Speaker 1: what are we hearing in terms of pushback against the
Speaker 1: latest moves by US to come off access to key technologies.
Speaker 1: So he said on Sunday that China will continue to
Speaker 1: innovate to a reach tech self reliance. But the building
Speaker 1: that the question is whether Beijing can indeed push forward
Speaker 1: with its efforts after the new RONDOL for US export
Speaker 1: control rules, the newer measures that the Washington is starting
Speaker 1: to hear that the China's tech development broad and then
Speaker 1: we have seen that even no, none of US companies
Speaker 1: like that equipment supplier SML, has been not ensnarled in
Speaker 1: the new wroungal for restrictions. So yeah, one of the
Speaker 1: broadest spent is about this sub restrictions for US persons
Speaker 1: to assist with China chip technology development. And then this
Speaker 1: is like the impact the far from this is something
Speaker 1: that we are still trying to get there better understanding about.
Speaker 1: You know, do you think that you know this is
Speaker 1: going to be a larger problem on China's economy. At
Speaker 1: the moment, we know that they're of course being beset
Speaker 1: by COVID lockdown. Still that restraining the economy. We know
Speaker 1: that the overall the real estate has been a particular
Speaker 1: area of concern. How much of a worry and the
Speaker 1: list that they have is the limitation of US expertise
Speaker 1: and indeed technology. In the near term, probably this is
Speaker 1: not going to cause a major problem for China's economy,
Speaker 1: But in the long run this will saw the effect
Speaker 1: bising's ambitions to better compete with the US and several fronts,
Speaker 1: particularly on emerging technologies including a artificial intelligence and self
Speaker 1: driving uh technologies. So in the long run this could
Speaker 1: pose uh uh a problem to China's efforts to uh
Speaker 1: uh sort of drive its ecomy with cutting edge technologies.
Speaker 1: It has continued to be a deteriorating situation between the
Speaker 1: US and China. Will this be expeeding this up? How
Speaker 1: do you foresee relations and folding between the two key
Speaker 1: economies in the world. So with your latest US EXCO
Speaker 1: expo control measures, it is already up causing some more
Speaker 1: uh problems, some issues between the relationship between the two
Speaker 1: great powers. So there are already a report saying that
Speaker 1: the Beijing is now a stone warding US efforts to
Speaker 1: uh set up agenda for the coming meeting between the
Speaker 1: she Jumping and Brill and Joe Biden next month during
Speaker 1: the twenty submit. So whether this is going to have
Speaker 1: uh sort of like more fault from the US measures
Speaker 1: including maybe a baiting is going to consider ramping up
Speaker 1: pressure on Kaiwan and it re meant to be seen.
Speaker 1: But what we are sure of is that the deteriorating
Speaker 1: a relationship between not Beijing and Washington suddenly will make
Speaker 1: investors your more jutary about the markets, and it's certainly
Speaker 1: being reflected in many of the chipmaker's stock prices at
Speaker 1: the moment. Debbie, we we want to thank you so
Speaker 1: much for the areas of expertise when it comes to chips,
Speaker 1: when it comes to Taiwan, when it comes to hardware
Speaker 1: as well. Now that does it for this edition of
Speaker 1: Bloomberg Technology. But you do not want to be missing
Speaker 1: tomorrow because we of course have a key voice coming
Speaker 1: from Mackenzie and Lenin's Rachel Thomas talk about women in
Speaker 1: the workplaces the annual report that's coming out. Don't forget
Speaker 1: to check out. Of course, the podcast. You can find
Speaker 1: did on the terminal as well as online on Apple,
Speaker 1: on Spotify, on course on my heart. But amid what
Speaker 1: was a bumper day in terms of on them they
Speaker 1: moves for stocks, particularly in the growth area in technology stocks.
Speaker 1: We leave you with preparation, perhaps a more volatile one
Speaker 1: coming out tomorrow. We brace for earnings of course for
Speaker 1: Netflix from New York and from San Francisco. This is
Speaker 1: bloom Bag