Speaker 1: From the heart of where innovation, money and power collive
Speaker 1: in Silicon Valley and beyond. This is Bloomberg Technology with
Speaker 1: Emily Jay. I'm Emily changing San Francisco and this is
Speaker 1: Bloomberg Technology. Coming up in the next hour, sanctions piling
Speaker 1: on Russia and President Biden releasing an unprecedented amount of
Speaker 1: US oil. We will have the latest on what the
Speaker 1: White House is doing to booie the US and tech economy,
Speaker 1: and how some tech companies are helping Ukrainian refugees get
Speaker 1: back to work. Plus submits the ongoing chip crisis, Apple
Speaker 1: looking for new chip suppliers even in China. We'll talk
Speaker 1: about why the iPhone maker is expanding its roster. Next,
Speaker 1: and a fledgely Union takes an early lead in an
Speaker 1: election to unionize an Amazon warehouse in New York, while
Speaker 1: the Union trails in a separate election in Alabama. Will
Speaker 1: have the latest. Let's get an update now on the
Speaker 1: war in Ukraine. As sanctions on Russian mount President Biden
Speaker 1: now plans to release a million barrels of oil a
Speaker 1: day from US reserves for six months to reduce US
Speaker 1: dependents on foreign supplies. Bloomber Examily Wilkins on the hill
Speaker 1: joining us now with more details on this, and Emily
Speaker 1: talked to us a little bit more about the President's
Speaker 1: plan and how much of an impact it will actually
Speaker 1: have on everyday Americans. So we've already seen President Biden
Speaker 1: go to these oil reserves and tried to release barrels before,
Speaker 1: trying to ease some of the pressure that we're seen
Speaker 1: with oil and gas prices. But this is going to
Speaker 1: be bigger than anything we've seen. I mean, those last
Speaker 1: releases were about I think thirty million, sixty million barrels.
Speaker 1: This is going to be a hundred eighty million when
Speaker 1: all is said and done, released roughly a million barrels
Speaker 1: of oil per day. And this comes as both the
Speaker 1: US is struggling right now with high gas prices trying
Speaker 1: to figure out a way to bring those back down
Speaker 1: with inflation, plus the war in Ukraine. But there's also
Speaker 1: struggles right now going on in Europe. Of Russian President
Speaker 1: Vladimir Putin has announced that if they want to pay
Speaker 1: for Russian gas, it's going to have to be in rubles.
Speaker 1: That could potentially be a huge problem for a lot
Speaker 1: of the European allies that President Biden has tried to
Speaker 1: make sure that he's moving with as he goes forward.
Speaker 1: So I think a lot of questions about what's going
Speaker 1: to happen next for a number of European countries, particularly
Speaker 1: Germany that really do rely on a lot of Russian
Speaker 1: oil Emily. President Biden also taking some steps to help
Speaker 1: alleviate pressure on US companies with regard to the chip
Speaker 1: crisis and a potential crisis in electric car batteries by
Speaker 1: invoking the Defense Production Act. Tell us about that. Yeah,
Speaker 1: so this is an act. It's been used before by
Speaker 1: Biden as well as by other presidents, and really to
Speaker 1: sort of help industry ease that need a little bit
Speaker 1: of a boost. And right now, the electric vehicle battery
Speaker 1: industry is something that you've seen concerns about from lawmakers
Speaker 1: on both sides of the aisle. They've written Biden, they've
Speaker 1: asked him to go ahead and invoke this act to
Speaker 1: really make sure that they're bolstering electric vehicles continuing their
Speaker 1: push there. I mean, this is something again, it ties
Speaker 1: into the energy, It ties into the high prices of
Speaker 1: oil and gas that we're currently seen, and it's also
Speaker 1: something that Biden was initially kind of reluctant to do
Speaker 1: because of concerns from environmental groups, and it shows just
Speaker 1: how much pressure the White House is now under to
Speaker 1: address some of these concerns. All right, Emily Wilkins for
Speaker 1: US at the Capital. Emily, thank you for that update. Meantime,
Speaker 1: Ukrainian refugees continue to fleep and estimated four million so far,
Speaker 1: and tech companies have not only been cutting off operations
Speaker 1: in Russia but also stepping in to help these refugees.
Speaker 1: Smart Recruiters, for instance, which has an office in crack Out, Poland,
Speaker 1: has been sheltering refugees while its employees have been faring
Speaker 1: them to and from the Ukrainian border, even bringing them
Speaker 1: into their own homes. The company is also working to
Speaker 1: help refugees re enter the workforce and start rebuilding their lives.
Speaker 1: Smart Recruiters founder and CEO Jerome turn It joins us now. Jerome,
Speaker 1: thank you so much for joining us. Talk to me
Speaker 1: about the situation your office and crack Out right now
Speaker 1: and how your employees are stepping into help. Yeah, thank
Speaker 1: you for having me. Emilie. I think what's what really
Speaker 1: happened here has happened organic key really from the second
Speaker 1: day of the invasion, everybody in our Crack office film
Speaker 1: about a d and fifty employees in Crack, and everyone
Speaker 1: started to think, how can I help? And they started
Speaker 1: to drive their car back and forced to the border
Speaker 1: to pick up refugees. They then brought supplies as necessary,
Speaker 1: and as you pointed out, it quickly evolved to actually
Speaker 1: welcoming refugees in their homes. And at this moment, many
Speaker 1: of our employees, I would say, almost everybody who actually
Speaker 1: has a big enough living room or or a guest
Speaker 1: guest room has a family at home. Um, you know,
Speaker 1: one of our employer, I think, mind Matteo, actually welcomed
Speaker 1: the mom with your baby and an infant. They've been
Speaker 1: driving for six days throughout Ukraine before they reached a border,
Speaker 1: and he was able to bring them home and to
Speaker 1: provide shelter and food and baby food and strollers and
Speaker 1: a baby bed, like really the basics of welcoming. And
Speaker 1: it's been humbling, frankly to see how much people have
Speaker 1: stepped up in Poland, which, as Emily pointed as received
Speaker 1: the majority of the influx of refugees. I understand your
Speaker 1: office is trying to a sort of operation center of sorts.
Speaker 1: You're you're giving a stipend, a five stipend to employees
Speaker 1: to help. They are donating supplies of all kinds. Talk
Speaker 1: to us about how the refugees are doing once they
Speaker 1: get to you. Yeah, I mean, this is a dire
Speaker 1: situation for everyone. Many of them have actually arrived as
Speaker 1: a mother with children, older people, many men have stayed
Speaker 1: behind to fight um. So it is a dire situation.
Speaker 1: And I think one one light of hope here is
Speaker 1: the is the connection that has been built between the
Speaker 1: people of Poland and Europe in general and the Ukrainian refugees.
Speaker 1: Like the you know, our slack channel as an example,
Speaker 1: would match the age of a kid with who can
Speaker 1: help them? So you would have, oh, I have a
Speaker 1: mom here, she has an eight year old and a
Speaker 1: four year old, and somebody would say, oh, actually I
Speaker 1: have a year old and a four year old, bring
Speaker 1: them over. And so there's like a family feeling to
Speaker 1: it that that field try and at least provides the basics.
Speaker 1: But as these refugees set on, of course, it opens
Speaker 1: up the question of what is next them and and
Speaker 1: where do they go from there? Right, many of these
Speaker 1: refugees don't know where they're gonna be sleeping tomorrow, let
Speaker 1: alone what they're gonna do next. You are actually a
Speaker 1: recruiting company. You help match talent with employers. How are
Speaker 1: you helping these refugees re enter the workforce? Yeah? We
Speaker 1: we actually we are a recruiting platform and so we
Speaker 1: help large enterprises manage their recruiting, with several thousand enterprises
Speaker 1: using our software and collectively actually our customers higher almost
Speaker 1: a million people a year just in Europe. And so
Speaker 1: we felt really our responsibility, frankly, our our duty as
Speaker 1: as a as a business to actually help. And so
Speaker 1: what we've done here is we've actually created a fast
Speaker 1: track application for Ukrainian refugees so that anybody who applies
Speaker 1: can self identify as a refugee and then be put
Speaker 1: into a fast track throughout the employment process at companies
Speaker 1: like Red Bullo Bush or Visa or Kia who are
Speaker 1: using our software. And I think it is it is
Speaker 1: actually at the moment in time where businesses who have
Speaker 1: been incredibly supportive of the war and posing sanctions on
Speaker 1: Russia making donations, and I would say now it's time
Speaker 1: to hire Ukrainians. That's the next time, because four million
Speaker 1: people are going to be looking for a job well,
Speaker 1: that is certainly unequivocal. Jerome turn Nex Smart Recruiters founder
Speaker 1: and CEO, thank you for bringing that story to us.
Speaker 1: Coming up, the I p A window could be closing
Speaker 1: or closed. We'll talk about the options for late stage
Speaker 1: private companies in an ongoing down market with Phil Haslett
Speaker 1: of Equities and Mrs Bloomberg. As stocks continue to whip saw,
Speaker 1: some of the big name startups that were expected to
Speaker 1: go public earlier this year have slowed their rush to market.
Speaker 1: Read It, for instance, had discussed listing shares as soon
Speaker 1: as the first quarter, according to Bloomberg sources, Yet even
Speaker 1: after filing the paperwork for an I p O, they
Speaker 1: haven't taken the next step. Let's talk about all this
Speaker 1: and more with Phil Haslett, founder and Chief Strategy Officer
Speaker 1: at Equity. Then, Phil, I was speaking to a venture
Speaker 1: capitalist this week who said, the I p O window
Speaker 1: is frozen shut. Would you agree? It's frozen shut, it's closed,
Speaker 1: it's double locked, it's it's nothing's happening for a while.
Speaker 1: So what next? So I think we're this in this
Speaker 1: period of uncertainty about inflation and its impact on companies.
Speaker 1: You've got tech stocks that are down to almost pre
Speaker 1: pandemic levels of pricing right, kind of like good yardsticks
Speaker 1: of the market like Zoom Docu signed peloton Um, and
Speaker 1: you've got political risk out there, and until those things
Speaker 1: are kind of have a bit more resolution, I think
Speaker 1: you're going to see a lot of companies thinking about
Speaker 1: raising a new round of funding or something that we're
Speaker 1: starting to see now which is starting to kind of
Speaker 1: control their cash through layoffs, are kind of reprojecting some
Speaker 1: of their growth. So Go Puff, for example, is reportedly
Speaker 1: cutting a lot of jobs, and also Bloomberg is reporting
Speaker 1: they're raising a billion dollars in new funding with no
Speaker 1: I p O in sight. They had originally raised at
Speaker 1: a fifteen billion dollar valuation. Not sure if that valuation
Speaker 1: will hold up. But what do you imagine is going
Speaker 1: on behind the scenes at a company like go Puff
Speaker 1: right now? Some very stressful board meetings, for sure. I
Speaker 1: think you're gonna see some valuations come down. Um. One
Speaker 1: of the scary things is that a lot of companies
Speaker 1: raised a lot of private capital in two thousand one
Speaker 1: at really high valuations and now they're probably effectively underwater
Speaker 1: and are little behind on growth strategies and growth projections,
Speaker 1: and so I think the real big next wave is
Speaker 1: going to be kind of this day of reckoning where
Speaker 1: companies admit it start layoffs, have to raise money, but
Speaker 1: probably it terms not really excited about um. And you're
Speaker 1: gonna have to hear the D word in in Silicon Valley,
Speaker 1: which is the down round UM. And we're gonna start
Speaker 1: to see more of those kind of come out UM.
Speaker 1: And we're just you know, it's really if you want
Speaker 1: to be the first to kind of tear the band
Speaker 1: aid off, or if you kind of want to wait
Speaker 1: and hope that that things are gonna get better. But
Speaker 1: you know, I like to say hope is not a strategy.
Speaker 1: We saw insta cart sort of tear off the band aid,
Speaker 1: lowering their own valuation from billion dollars voluntarily. They're not
Speaker 1: in the process of raising money, at least not right now.
Speaker 1: You're saying mass layoffs, a mass number of down rounds.
Speaker 1: Are we going to see companies go under get acquired?
Speaker 1: I think a combination of all three. I thought what
Speaker 1: Instacart did was a really gutsy move really to kind
Speaker 1: of come out first and say, look, there's a benefit
Speaker 1: to actually repricing ourselves at billion. We can now issue
Speaker 1: stock to our employees and a more fair value. Our
Speaker 1: competitors like Door Dash er down a lot um. I
Speaker 1: think other companies gonna do. So You're probably gonna see
Speaker 1: some consolidation, and I think you're gonna start to see
Speaker 1: a paradigm shift where instead of it being a very
Speaker 1: founder friendly market to raise capital, it's going to shift
Speaker 1: to of vcas and to the growth equity investors. They're
Speaker 1: gonna get better terms, they're going to get better valuations,
Speaker 1: and we're going to start to see that happen. One
Speaker 1: of the interesting things that equities and is because of
Speaker 1: kind of where we sit, we can actually see secondary
Speaker 1: transactions that are happening in between the last funding around, right,
Speaker 1: because we usually don't see prices happen for a year
Speaker 1: or two at a time, and we're definitely seeing kind
Speaker 1: of pricing compression versus just a quarter ago. What does
Speaker 1: it mean for employees in the middle of the Great Resignation,
Speaker 1: when a lot of people have been thinking about, you know,
Speaker 1: do I really want to keep doing what I'm doing? Yeah? Absolutely, Well,
Speaker 1: the first thing is a lot of these employees were
Speaker 1: really excited and anticipating some type of liquidity for their
Speaker 1: shares by way of some type of IPO or maybe
Speaker 1: aspect and maybe if they've started thinking about life events.
Speaker 1: So when you compound the fact that the markets are down,
Speaker 1: you're not getting liquidity. UM goods are costing more. A
Speaker 1: lot of companies are starting to proactively kind of reach
Speaker 1: out to places like ourselves and start to think about
Speaker 1: liquidity for their employees and the private markets, right and
Speaker 1: so fortunately that's kind of a part of the capital
Speaker 1: market structure. That's that's grown a lot in the last
Speaker 1: seven or eight years. So we expect and you know,
Speaker 1: to keep seeing that happen. Now, your rival Forge, I
Speaker 1: believe just it a back is Equities and kind of
Speaker 1: I p O eventually, though maybe not in the near down. Yeah,
Speaker 1: well windows very closed right now. But you know, we
Speaker 1: started equities and to bring private markets to the public
Speaker 1: grade and that's our mission. And we've been fortunately being
Speaker 1: able to grow and as a private company haven't been
Speaker 1: inhibited by you know, how we can deliver that to
Speaker 1: our customers. UM. But you know, as my co founder
Speaker 1: and I, one of our responsibilities is to kind of
Speaker 1: evaluate all options and if there's an opportunity to significantly
Speaker 1: grow the business and and kind of further that mission. Uh,
Speaker 1: you know, we uh, we'll keep our door open through that,
Speaker 1: all right, Phil Haslett, founder and strategy officer at Equities,
Speaker 1: and thank you. Coming up put some new supplies start
Speaker 1: chipping into Apple. Why Apple is looking to diversify its
Speaker 1: supply chain for iPhone parts and to unionize or not
Speaker 1: Amazon workers in the midst of a critical vote in
Speaker 1: New York and Alabama. Will have the latest. Next, this
Speaker 1: is Bloomberg. Apple is exploring news sources for the memory
Speaker 1: chips that go into iPhones after a disruption at a
Speaker 1: key Japanese partner, including its first Chinese producer joining us
Speaker 1: now Bloomberg Mark German, who covers Apple. So Mark, who's
Speaker 1: Apple talking to for new parts? And why? Yeah, Apple
Speaker 1: for one of the first times is looking to a
Speaker 1: China based memory supplier no memory, nan memory, nan flash memory.
Speaker 1: That's actually the storage right that they have in MacBooks
Speaker 1: and iPhones and ips this point. So they're talking to
Speaker 1: this China base company called yang z Memory. And this
Speaker 1: is notable because Apple traditionally builds its devices in China,
Speaker 1: but it doesn't use China based suppliers for components of
Speaker 1: this magnitude right, that's potentially going to change. They are
Speaker 1: testing some of their MARY chips, they're having discussions with them.
Speaker 1: There's no guarantee that these chips will actually be implemented
Speaker 1: into an iPhone or another device this year, but they're
Speaker 1: working toward it. With Apple has always tried to do
Speaker 1: is diversify its component sourcing as much as possible. So
Speaker 1: if you have like we had with one memory supply February,
Speaker 1: an issue where a factory became contaminated, or you have
Speaker 1: a you know, a weather disruption or a COVID disruption,
Speaker 1: right there are backup suppliers because Apple can't afford with
Speaker 1: everything on the line to delay products because a component
Speaker 1: issues or to have less supplied than expected. So that's
Speaker 1: why they try to have backup sources. What's the significance
Speaker 1: of Apple looking at a Chinese supplier in the midst
Speaker 1: of this big push to bring chip production back to
Speaker 1: the United States. Yeah. I mean to some people it
Speaker 1: may not be a great look, right, but business is business,
Speaker 1: and consumers at the end of the day want to
Speaker 1: get their phones. Investors at the end of the day
Speaker 1: want Apple to be able to ship the phones, and
Speaker 1: so if they need to go to a supplier that may,
Speaker 1: you know, not look so hot right now, right, it's
Speaker 1: a bad look, but at least they're gonna be able
Speaker 1: to get the phone shipped. Now, I think the more
Speaker 1: possi possibly the more detrimental thing is that these suppliers
Speaker 1: traditionally have not done as good a job at creating
Speaker 1: those components as some of the other suppliers in Asia
Speaker 1: and elsewhere in the world. Right, So that would be
Speaker 1: my main concern if I were Apple, getting the best product,
Speaker 1: because what you don't want or some iPhones to perform
Speaker 1: better than others in the ISAAC consumers. All right, Mark German,
Speaker 1: thank you for that update. Something will continue to follow meantime.
Speaker 1: A fledgling union taking an early lead in an election
Speaker 1: to unionize at an Amazon facility in New York, while
Speaker 1: in a completely separate election in Alabama and Alabama union
Speaker 1: efforts trailing this want to do over election. I want
Speaker 1: to get an update on this with our Josh Idolston
Speaker 1: in San Francisco. Josh, we actually have some breaking news
Speaker 1: that fledgling union in New York looks like it's on
Speaker 1: track to win with the majority of the votes a
Speaker 1: bit over half counted and more counting tomorrow, the Union
Speaker 1: is in the league, which means there's the potential for
Speaker 1: really a stunning upset here if in fact, when all
Speaker 1: the votes are counted, including any challenge balance that end
Speaker 1: up getting counted, the Union has a majority. The bigger
Speaker 1: picture here is that in recent decades, unions have almost
Speaker 1: never succeeded in big labor board elections at the very
Speaker 1: top non union brand name prominent companies in the United States,
Speaker 1: So that the Union is currently in the lead more
Speaker 1: than halfway through is stunning. And this is happening in
Speaker 1: a campaign where the Union is pretty d i y
Speaker 1: effort led by an employee that Amazon fired a couple
Speaker 1: of years ago. Meantime, we're seeing the trend shifting in
Speaker 1: the other direction in this election in Alabama, which, as
Speaker 1: you know the history of this very well. They're doing
Speaker 1: this election over again because of a lot of controversy,
Speaker 1: but looks like the Union not winning yet so far there,
Speaker 1: what do you make of that? So there, the Union
Speaker 1: is behind by around a hundred votes, and there are
Speaker 1: around four hundred challenge ballots we've heard, which means ballots
Speaker 1: where there's a dispute between the two sides about whether
Speaker 1: that envelope should be opened and that votes should be counted.
Speaker 1: So we don't know what the result will be, but Amazon,
Speaker 1: in its effort to defeat the union, is ahead in Alabama,
Speaker 1: though not by as much as last time. Last time
Speaker 1: there were challenged ballots, but there weren't enough of them
Speaker 1: to make the difference, and so the union would have
Speaker 1: been defeated if not for the labor board concluding that
Speaker 1: there have been too much misconduct and so the election
Speaker 1: should be run again. In each of these cases, Amazon has,
Speaker 1: according to workers, been aggressively campaigning against organizing, and it
Speaker 1: is not easy to win a big labor board election
Speaker 1: against a company that's determined to dissuade workers unionizing. How
Speaker 1: are Amazon workers everywhere else watching this? We've seen already
Speaker 1: a Starbucks. How a win just one place can be
Speaker 1: a lightning rod in a lightning ball in terms of
Speaker 1: inspiring other people to organize. We saw with the first
Speaker 1: all Right Bloomberg, Josh Idolson. There looks like we lost, Josh,
Speaker 1: but certainly, as he was discussing, this could be very significant. Obviously,
Speaker 1: this is something that Amazon employees everywhere are watching closely.
Speaker 1: We'll see if these union votes or how these union
Speaker 1: volks impact potential unionization efforts at other Amazon warehouses across
Speaker 1: the country and around the world. Coming up the one
Speaker 1: trillion dollar tech route from Netflix to Meta, from Zoom
Speaker 1: to Airbnb. For the winners and losers of the post
Speaker 1: pandemic age, we will discuss. This is Bloomberg he teach
Speaker 1: whip which pet A whip, A whip, pip A whip
Speaker 1: people or whip pip pip peach, whip A whip, A
Speaker 1: whip a whip, hip a whip pip or whip which whip,
Speaker 1: whip a whip A which tip a bit pip a
Speaker 1: whip hip hip which pet? Welcome back to Bloomber Technology.
Speaker 1: I'm which hang in San Francisco. Let's get back tech stocks.
Speaker 1: Volatile start of the year shows investors are shifting away
Speaker 1: from pandemic darlings like et SE, Netflix, PayPal, Peloton, all
Speaker 1: among the worst performers in the SMP so far this year.
Speaker 1: What does it mean? What's next? Let's bring in Mark Levin.
Speaker 1: J ANDP Security is a citizens company. CEO, Mark, thank
Speaker 1: you so much for joining us. So what actually looks
Speaker 1: good in tech to you right now? Well, you're looking
Speaker 1: at a screen not much. I mean, the first quarter
Speaker 1: obviously was one of the worst performers in the entire market,
Speaker 1: and we came from such lofty levels that I think
Speaker 1: it's kind of the bigger they are the heart of
Speaker 1: they fall. But I think throwing out tech a of
Speaker 1: the first quarter is a bad idea because you just
Speaker 1: mentioned it. It's part of all of our lives, and
Speaker 1: the more increasing part of our lives, and that's not
Speaker 1: going to change. In fact, it's accelerating. I think it's
Speaker 1: just what our investors want to pay for it. We've
Speaker 1: been focusing on some of those broken names here at
Speaker 1: JMP that have still garnered a lot of wallet. It's
Speaker 1: just the growth rate is decelerated. They've had some digestion issues,
Speaker 1: and we're still interested in some of those names. You
Speaker 1: mentioned something Paypals, the name we like a lot the
Speaker 1: payment space, which is obviously overtaking a lot of our wallet.
Speaker 1: It's a big part of citizens. In fact, the citizens
Speaker 1: pay pay is changing. Cash is trash. It's people are
Speaker 1: paying with their phone, and that's not going to decelerate.
Speaker 1: We mentioned docu sign is a name that had a
Speaker 1: very tough first quarter insider buying, but a part of
Speaker 1: our lives. That's going to continue. We're not going to
Speaker 1: go down to the corner to get things notarized and
Speaker 1: and have stacks of paper. So that's what we're looking
Speaker 1: for at JMP. And I think some of these big
Speaker 1: darlings have had a hard time in the first quarter,
Speaker 1: but we're still there and I think you're going to
Speaker 1: see some of the performance in the back half of
Speaker 1: the year. He's certainly better than the first quarter, and
Speaker 1: that's what we're focused on. So do you think these
Speaker 1: names are going to continue to fall and for how
Speaker 1: much longer before it gets better? Well, I again, I
Speaker 1: think the investors will look at their first quarter reports
Speaker 1: and see the digestion of of the poor reports that
Speaker 1: they had from the fourth quarter. Is it's still getting worse.
Speaker 1: And I think even a slight diminution in that getting
Speaker 1: worse will be enough for investors to take note. Um. Again,
Speaker 1: this is kind of the bigger They are the heart
Speaker 1: of the fall trade. Um, you put up the faint stocks.
Speaker 1: My good friend Jeff Lagger Capital Group, we called mount
Speaker 1: Fang because we put Microsoft in Tesla in those names. Um,
Speaker 1: you look at the divergence and performance within the fangs,
Speaker 1: which used to trade lockstuff. They don't anymore. Microsoft had
Speaker 1: to blow up first quarter. Apple almost had a new
Speaker 1: high today. And then you look at some of the
Speaker 1: romans of net like a Facebook, they're far worse and
Speaker 1: divergent from those names. So again, we had a market
Speaker 1: where everything worked. We had a market for a little
Speaker 1: while where nothing worked. Now we're going to a stock
Speaker 1: pickers market, and I think that's what we're focused on.
Speaker 1: I think this whole same thing needs to be redefined
Speaker 1: a bit. I agree in any way, I guess it
Speaker 1: would be mag since it's not Facebook anymore, it is meta.
Speaker 1: Do you think Netflix should still be in that group? Well,
Speaker 1: it's a great question, Emily. I mean, it's a leader
Speaker 1: in the category. A lot of people are playing catch up,
Speaker 1: a lot of people are sniping at them and trying
Speaker 1: to take their share of wallet. Um, it's the leader
Speaker 1: of that group. We're gonna learn a lot. I think
Speaker 1: through two about what name shouldn't shouldn't be in there.
Speaker 1: Wall Street loves acronyms, they love things. We had a
Speaker 1: nifty fifty, you know, we had all these different names.
Speaker 1: Over time, they've usually ended poorly. I think for some
Speaker 1: of these names, it already has. I think for other
Speaker 1: of those those names like Microsoft and Apple, it continues
Speaker 1: to climb that wall of worry, and I think, well,
Speaker 1: what we should be looking at is is there ground
Speaker 1: ahead of them to gain market share. Um, what we
Speaker 1: haven't talked about in a long time. You certainly have
Speaker 1: and I certainly haven't is a spector regulation. We don't
Speaker 1: talk about that anymore. That's a great backdrop for some
Speaker 1: of these names that had that overhang which could have
Speaker 1: been multiple compression, and we're not seeing that. So again,
Speaker 1: you've got to go bottoms up. You gotta pick up
Speaker 1: where the market is leading them. Apple is a great
Speaker 1: example what they're doing in Apple pay and what they're
Speaker 1: doing our share of walt and share of time, and
Speaker 1: that's what you want to pay attention to. Well, they're
Speaker 1: certainly talking about regulation in Washington on both sides of
Speaker 1: the aisle, but obviously the war has taken mind and
Speaker 1: attention share. Do away with the acronyms. Mark, is that
Speaker 1: what you're saying, Fang not fang meang. I mean I
Speaker 1: added I added the mountains to it, so I had
Speaker 1: a microseft to test. I've been doing that for a while. UM,
Speaker 1: I think it's an easy thing to put your moniker
Speaker 1: around what. We've got to find some new leadership as well,
Speaker 1: because UM, as long as these five or six companies
Speaker 1: take up such a large share of of our investing
Speaker 1: mindset and is to share them of the indexes, I
Speaker 1: think people are gonna look for UM potentially regulating Again.
Speaker 1: We've talked a lot about regulation. I haven't seen a lot.
Speaker 1: I've seen some self regulation markets regulating themselves, which is
Speaker 1: really really interesting to me. It's not Congress. I said
Speaker 1: to somebody not too long ago. I don't think the
Speaker 1: average congressman knows what how to twitter, how to tweet,
Speaker 1: excuse me, how to use their Twitter, etcetera. They have
Speaker 1: a lot of people who helped them. If they can't
Speaker 1: figure it out themselves, how they gonna regulate it? And
Speaker 1: that was the backtrop that I always thought would happen,
Speaker 1: which we have less regulation no more. Well, they've talked
Speaker 1: a lot about regulation, they have to act on it.
Speaker 1: We have seen tougher regulation happening in Europe, and of
Speaker 1: course much remains to be seen. Mark Leman JMP Securities
Speaker 1: a Citizens Company CEO. Thank you Mark, as always coming
Speaker 1: up Dows that is decentralized autonomous organizations. What are they
Speaker 1: and what is their role in the crypto ecosystem. We're
Speaker 1: going to speak with the co founders of the decentralized
Speaker 1: investment platform Syndicate. Next, this is Bloomberg. It is time
Speaker 1: now for our crypto report. We're going to focus on
Speaker 1: Dows today, decentralized autonomous organizations. Who to explain what those are?
Speaker 1: Our crypto contributor Nale Bossi Sinale. It's complicated, but I
Speaker 1: know you can boil it down. Yeah, let's try to
Speaker 1: boil it down for you, partially through the use cases.
Speaker 1: These are decentralized autonomous organizations. They have different voting structures
Speaker 1: that tend to decentralize and get together groups of people
Speaker 1: who want to invest in certain projects or give to
Speaker 1: certain charities. And some examples of this that we've seen are,
Speaker 1: for example, Constitution DOWT, which raised about forty seven million
Speaker 1: dollars to try to buy an original copy of a constitution.
Speaker 1: Of course, we know they were outbid by billionaire Ken Griffin.
Speaker 1: Please or Dow which has invested in a series of
Speaker 1: n f T s and has given millions of dollars
Speaker 1: to charities. And you craned out, which has also raised
Speaker 1: millions of dollars for Ukraine in the wake of the
Speaker 1: start of the Russian invasion in Ukraine. So we have
Speaker 1: a bunch of ways that these have been used, from
Speaker 1: venture funding to charities. It's going to be interesting how
Speaker 1: they continue to take shape Emily in the process of
Speaker 1: investing more and investing more through digital ecosystems. All right, Shanali,
Speaker 1: thank you. I want to bring in our next guest
Speaker 1: for a deeper dive. Here Will Pepper and e Lee,
Speaker 1: the co founders of Syndicate joining us now, which is
Speaker 1: shaping its own role in the DOW space. Even want
Speaker 1: to start with you. There are plenty of definitions for
Speaker 1: dows out there. In the simplest terms, what is a
Speaker 1: DOW to you? Yeah, The way that we think about
Speaker 1: dows is that it's the web free technology that enables
Speaker 1: communities to coordinate capital natively on the Internet. And if
Speaker 1: we think about the applications of that, and it's pretty
Speaker 1: profound in terms of how you know, communities, people in
Speaker 1: capital work together. And so one of the biggest application
Speaker 1: in areas of DOWS in our view is the area
Speaker 1: of investing. And when we think of investing. It's not
Speaker 1: just about the allocation of financial capital, but also the
Speaker 1: allocation of human capital as well. And so um, what
Speaker 1: we're building a syndicate is lead free infrastructure to power
Speaker 1: investing on the Internet through our infrastructure. So will on
Speaker 1: that note talk to us a little bit more about
Speaker 1: your view for how syndicate fits into the future of
Speaker 1: TAWS and decentralized investing in general. Absolutely. Um, yeah, I've
Speaker 1: been involved in the DAWA space since investing on the
Speaker 1: very first so in I'm called the Doubt and because
Speaker 1: there were no other days at the time. And the
Speaker 1: way we see investing moving is becoming dramatically more community owned,
Speaker 1: and dramatically more transparent and dramatically more accessible. And the
Speaker 1: interesting thing is that DOWS themselves, the structures they enable
Speaker 1: are not new. For example, under the Hood Syndicate uses
Speaker 1: investment clubs which have existed forever a century. But the
Speaker 1: thing that is new is how easily and quickly and
Speaker 1: cheaply incorporated. Whether that's Constitution down which I was on
Speaker 1: the core team of raising forty plus million dollars in
Speaker 1: under a week, whether that's Ukraine now raising large amounts
Speaker 1: of money to go to Ukraine at the time when
Speaker 1: they need it in a very cute time of crisis.
Speaker 1: That speed and that efficiency is incredibly new, even if
Speaker 1: the structures themselves are the things that have existed before.
Speaker 1: You know, since the start of Ukraine dow. I'm wondering
Speaker 1: you were part of the early members of a constitution
Speaker 1: dow as well. From what I remember. Are there ways
Speaker 1: that dows have changed? Will that surprised you? Yeah? I
Speaker 1: think that the interesting thing is that previously people felt
Speaker 1: that dows would be very long running. So the idea
Speaker 1: of the dow in was this kind of ecosystem fund
Speaker 1: to fund projects on the ethereum network for a very
Speaker 1: long time. And some dows are being referred to now
Speaker 1: as financial flash moods. Essentially dows that form very quickly
Speaker 1: for a specific purpose, execute on that purpose, and then
Speaker 1: and then in some cases keep going in the lighter
Speaker 1: weight way or dissolved completely. So I think that that's
Speaker 1: one thing that's really fascinating is that if you want
Speaker 1: to set up, say a fund for these things, it
Speaker 1: would take um many many months of work. But because
Speaker 1: dows can be spun up so much more quickly, it
Speaker 1: can also be spun down so much more quickly once
Speaker 1: their purpose is done. Are there structural issues in are
Speaker 1: their governance issues that really still need to be worked
Speaker 1: out among doubts when people are thinking about entering into them. Yeah,
Speaker 1: one of the biggest things that we see is one
Speaker 1: of the potential limitters for the impacts and dows is
Speaker 1: how legally these things are going to be um uh
Speaker 1: you know, viewed and and and and handle right. And
Speaker 1: so a lot of the members and a generators of
Speaker 1: these doos they want to do the right thing right
Speaker 1: as well as mentioned, most of these organizations that come
Speaker 1: together using dallas on the internet are trying to accomplish
Speaker 1: a really specific and important purpose, whether that's you know,
Speaker 1: um funding um you know projects or people that deserve it,
Speaker 1: whether that is funding some kind of filming propic or
Speaker 1: nonprofit related or charitable purpose, or in the case of
Speaker 1: Ukraine DOW, trying to provide you know, aid to the
Speaker 1: people that needed the most right. And most of these
Speaker 1: organizations and these people, I mean, they're not trying to
Speaker 1: do bad things. They're not trying to go around the laws.
Speaker 1: They don't want to you know, be investigated, they don't
Speaker 1: want to go to jail or anything like that. And
Speaker 1: so what dows need are actually legal pathways where they
Speaker 1: can accomplish their mission and also protect the purpose the
Speaker 1: mission of the tao as well as the members of
Speaker 1: those taos. And so that is a big part of
Speaker 1: what Syndicate UM and we are doing is providing these
Speaker 1: very tried and true legal pathways for people to use
Speaker 1: this technology for the purposes that are really really important.
Speaker 1: So as we'll mention, you know, investment clubs as a
Speaker 1: legal construct have been around for more than a hundred years,
Speaker 1: and some of the things that we're working on, or
Speaker 1: what are some other legal designs where people can utilize
Speaker 1: this technology and not need to worry about whether or
Speaker 1: not they're you know, maintaining compliance with various regulations, whether
Speaker 1: it be the SEC or otherwise. So there's definitely concerns
Speaker 1: that this and all this can all get a little messy.
Speaker 1: Well I'm curious, what have been the learnings from the
Speaker 1: Constitution Dow situation and where is that project today? Yeah, yeah,
Speaker 1: so constitutions to after we lost the bid, we we
Speaker 1: sputted down and we we we we effectively developed out
Speaker 1: refunded the money and people could uh people could could
Speaker 1: get the full contributions back. UM. One thing that's very
Speaker 1: interesting about constitution doubt I helped a lot with their compliance,
Speaker 1: just personally helping guide them through it. And one thing
Speaker 1: is that we could not give ownership of the constitution. UM.
Speaker 1: We could give people the ability to vote on where
Speaker 1: it was displayed and uh, for example, how it should
Speaker 1: be presented, but we couldn't give them ownership of the
Speaker 1: document itself. And I think there's this regulatory gap we
Speaker 1: see right now where people really want ownership, but the
Speaker 1: current laws as they're structured, don't allow for that to happen.
Speaker 1: So in reality, UM, the current investor protection laws are
Speaker 1: leading to people getting even less ownership and even less
Speaker 1: protection um uh in the current state. So we're definitely
Speaker 1: on a path where there's a conflict between UM, the
Speaker 1: way the regulations are written and the desires that people
Speaker 1: have and UM. And I hope that that conflict is
Speaker 1: resolved where people can have excel ownership of these dolls
Speaker 1: UM in the future. All right, Well, Paper and Lee
Speaker 1: Syndicate co founders. Fascinating discussion, Shinnali bask as well, thank
Speaker 1: you all for joining us. Coming up women helping women
Speaker 1: to get to the top and stay there, we will
Speaker 1: speak to the CEO of Chief, Caroline Childers, a newly
Speaker 1: anointed unicorn. This is Bloomberg Chiefs, a private network of
Speaker 1: senior executive women designed to drive more women into positions
Speaker 1: of power, as announcing a hundred million dollars in new funding,
Speaker 1: bringing their total valuation to one point one billion dollars.
Speaker 1: I want to talk about that and more with CHF
Speaker 1: CEO and co founder Caroline Childers. Caroline, thank you so
Speaker 1: much for joining us. Talk to us a little bit
Speaker 1: about how Chief started and what you believe sets it
Speaker 1: apart from other networking opportunities out there. Uh. Well, I'm
Speaker 1: super excited to be able to join you today. Um.
Speaker 1: And the idea of Chief it came from a very
Speaker 1: personal place for myself and my co founder Lindsay, where
Speaker 1: we were getting more senior in our careers and spending
Speaker 1: all of our time mentoring others and managing our teams
Speaker 1: and no longer had a real network a community resources
Speaker 1: to be able to tap into as we were navigating
Speaker 1: the new challenges of senior leadership. Um and Uh, it's
Speaker 1: the old adage of it gets lonely at the top,
Speaker 1: but it gets lonely at the top a lot earlier
Speaker 1: for women. So we were really inspired to build a
Speaker 1: community specifically focused on senior executive women and that was
Speaker 1: the inspiration for us launching Chief. How is Chief different
Speaker 1: than from example, the Wing, which I know struggled to
Speaker 1: stay in business, and it's it's different value proposition. But
Speaker 1: I'm curious what you think differentiates this from alternatives? Yeah,
Speaker 1: So Chief is first and foremost, as I mentioned, focused
Speaker 1: on a more senior executive women. UM. We think there
Speaker 1: are just amazing communities that exist out there for women
Speaker 1: at large. We saw a real white space of being
Speaker 1: able to focus in on senior executive women. And for us,
Speaker 1: it was really about how do we drive more women
Speaker 1: into positions of leadership and keep them there and really
Speaker 1: focus on that leadership development that is so critical at
Speaker 1: every stage of your career. UM. And So while uh,
Speaker 1: we often are compared UM, I think what we often
Speaker 1: say is we're a community that has a space that
Speaker 1: our that our community can come together in. UM. But
Speaker 1: we're a community first. What trends are you seeing right
Speaker 1: now with women leadership in business? Are we seeing more
Speaker 1: women get to the C suite? Are we seeing more
Speaker 1: women stay there? Certainly it's still not enough. Yeah. I mean,
Speaker 1: I think the pandemic just threw everything on its head. Um.
Speaker 1: And I think that is why Chief has had such
Speaker 1: success over the last few years. We went into the
Speaker 1: pandemic where women leaders, in particular, we're not only having
Speaker 1: to manage their teams through an unprecedented time, but also
Speaker 1: their families. Um. And I think that is why you
Speaker 1: saw so much of the women workforce actually drum out. Um.
Speaker 1: And it's why something like Chief resonated in such a
Speaker 1: big way in that moment because there were no playbooks,
Speaker 1: There was no place to turn to of how do
Speaker 1: you navigate this new normal? Uh. And it was a
Speaker 1: really amazing opportunity for us to solidify what we can
Speaker 1: provide for this community. And I think when you fast
Speaker 1: forward to where we are today, even as things are
Speaker 1: starting to return back to normal, we're still in this
Speaker 1: just cottributed workforce where connection is just such a critical
Speaker 1: thing that we are all craving, and Chief really helps
Speaker 1: to provide so much of that. We're in the middle
Speaker 1: of a down market, we are seeing the I P
Speaker 1: O window. A guest earlier said, it is double locked
Speaker 1: shut for now. How is that shaping your strategy about
Speaker 1: how to use this new cash that you've raised. Yeah,
Speaker 1: I mean, first and foremost we UH all capital that
Speaker 1: we have ever raised, is focus on how do we
Speaker 1: build the best member experience for the twelve thousand women
Speaker 1: that are a part of our network today and the
Speaker 1: many more that we hope join over the next few years.
Speaker 1: And for us, that is really starting to invest in
Speaker 1: a much deeper investment in our technology and our data
Speaker 1: so that we can really start to build personalization. Everybody's
Speaker 1: career journey is different, and we want to make sure
Speaker 1: that we are connecting people with the right individual, the
Speaker 1: right resources, the right information for them to navigate that
Speaker 1: this specific challenge that they are that they are pursuing. UM.
Speaker 1: The other thing for us to UM you know, of
Speaker 1: our members are actually sponsored by companies UM so six
Speaker 1: percent of the Fortune one hundred companies have CHIEF members
Speaker 1: and we're really excited to use this capital to start
Speaker 1: to build deeper relationships directly with those companies, so that
Speaker 1: sponsorship of something like Chief is a no brainer. Carol
Speaker 1: and Shoulders, CEO and co founder of Chief, Thank you
Speaker 1: Caroline for sharing that vision with us, and that does
Speaker 1: it for the edition of Bloomberg Technology. Join us tomorrow
Speaker 1: for discussion with the CEO of bright Line, Naomi Allen
Speaker 1: and Justin con co founder of Twitch. And don't forget
Speaker 1: to check out our new podcast find it anywhere you
Speaker 1: get your podcasts, and get our daily round up. I'm
Speaker 1: Emily Changing in San Francisco. This is Bloomberg WI pick
Speaker 1: pipit a PI wid a whip with a hip, hip
Speaker 1: a whip he would have