WEBVTT - Bloomberg Businessweek Weekend - October 1st, 2021 0:00:01.040 --> 0:00:05.440 This is Bloomberg Business Week Inside from the reporters and 0:00:05.600 --> 0:00:09.200 editors who bring you America's most trusted business magazine, plus 0:00:09.240 --> 0:00:13.160 global business finance and tech news As it happened. Bloomberg 0:00:13.240 --> 0:00:16.759 Business Week with Carol Messier and Bloomberg Quick Takes. Tim 0:00:16.800 --> 0:00:21.560 Stinevin on Bloomberg Radio. Hi everyone, Welcome to the weekend 0:00:21.680 --> 0:00:23.959 edition of Bloomberg Business Week. But what a week it was, 0:00:24.079 --> 0:00:27.000 especially in Washington, d C. With President Biden trying to 0:00:27.040 --> 0:00:30.200 salvage his agenda as Democrats try to come together on 0:00:30.240 --> 0:00:33.760 the cost of an infrastructure bill, taxes, and the debt ceiling. 0:00:33.840 --> 0:00:36.919 We definitely focused on politics. We also Tim focused on 0:00:36.960 --> 0:00:40.480 the markets, market volatility taking hold once again this past week, 0:00:40.640 --> 0:00:44.360 a lot of fears over persistently high inflation rattling stocks, 0:00:44.479 --> 0:00:47.000 especially when it comes to big tech stocks. We'll explore 0:00:47.000 --> 0:00:49.800 those topics and more with venture capitalist Alan patrick Off, 0:00:49.800 --> 0:00:52.519 the co founder and chairman emeritus of Great Croft Ventures. 0:00:52.600 --> 0:00:55.319 That was a wide ranging conversation. Plus we'll find out 0:00:55.320 --> 0:00:58.320 why there's been a surgeon wealthy Americans looking to establish 0:00:58.640 --> 0:01:02.240 dual citizenship and were in countries, and also how supply 0:01:02.360 --> 0:01:05.800 chain constraints and climate change are impacting. I gotta say 0:01:05.840 --> 0:01:08.200 two of our favorite things, coffee and wine. All of 0:01:08.240 --> 0:01:10.240 that and more to come, but we begin this week 0:01:10.280 --> 0:01:13.160 with a look at this week's issue, our cover story, 0:01:13.280 --> 0:01:15.280 which we're gonna get into a bit later. It's all 0:01:15.280 --> 0:01:19.160 about insider trading in America and why toothless regulations are 0:01:19.200 --> 0:01:21.840 doing little to discourage the practice. And it's not exactly 0:01:21.840 --> 0:01:23.520 what you think. I'm not going to give it all away, 0:01:23.560 --> 0:01:26.679 but it's not necessarily what you think of when you 0:01:26.680 --> 0:01:29.840 think insider trading, right, But it's insiders who are doing 0:01:29.840 --> 0:01:34.480 trading exactly. And so it's a fabulous cover story. Let's 0:01:34.480 --> 0:01:36.280 talk a little bit about the issue. There's a lot 0:01:36.280 --> 0:01:40.360 of interesting stories in there. We talked about the car industry, 0:01:40.400 --> 0:01:45.760 the online used car dealers that market used cars, thriving 0:01:45.840 --> 0:01:48.600 during the pandemic. Everybody wanted a car, partly because of 0:01:48.640 --> 0:01:50.680 the chip shortage. It's hard to get a new car, 0:01:50.720 --> 0:01:53.640 partly because people wanted to drive more and avoid public transit. 0:01:53.720 --> 0:01:56.240 They want to keep their families together in sort of pods. 0:01:56.440 --> 0:01:58.360 But one interesting thing happened was you could buy a 0:01:58.440 --> 0:02:00.440 used car at one point during the pandemic and then 0:02:00.920 --> 0:02:03.680 drive it and then sell it later and actually make 0:02:03.720 --> 0:02:07.040 a profit, which doesn't make sense, does not get exactly 0:02:07.120 --> 0:02:09.240 how it happened. I mean with a car, right, you're 0:02:09.240 --> 0:02:11.240 supposed to drive off the lot and immediately the car 0:02:11.320 --> 0:02:15.240 is worth less, right exactly. Um, really fun story and 0:02:15.280 --> 0:02:17.639 deep dive into that. UM. One of the things that 0:02:17.720 --> 0:02:20.240 caught my attention is we do a spotlight on the 0:02:20.280 --> 0:02:23.920 ten Companies to Watch, and this really follows on the 0:02:24.000 --> 0:02:26.200 list of fifty Companies to Watch that we always do 0:02:26.560 --> 0:02:29.440 in January, and so we do updates on this, but 0:02:29.560 --> 0:02:33.960 it deals with Lulu, Lemon, Roku, Airbnb, i n G, 0:02:34.360 --> 0:02:37.840 Altria Group, UH, so many interesting little companies that are 0:02:37.840 --> 0:02:40.640 out there, No, not so little, actually Folkswagen that's a 0:02:40.639 --> 0:02:43.920 big one. Uh. And so this really taps into our 0:02:43.919 --> 0:02:49.200 Bloomberg intelligence team. These alice identify UH companies for Business 0:02:49.240 --> 0:02:51.840 Week on an ongoing basis and they give their reasons 0:02:51.880 --> 0:02:53.760 why why bees need to be on your radar. So 0:02:53.960 --> 0:02:56.200 check it out. Check out that section. And also one 0:02:56.320 --> 0:02:59.520 area that grabbed my attention in this week's edition was 0:02:59.560 --> 0:03:02.800 the rye is of premium economy. It's for airlines, a 0:03:02.840 --> 0:03:05.680 new middle class carol. People are starting to travel again 0:03:05.760 --> 0:03:08.520 or at least think about traveling again, and an interesting 0:03:08.560 --> 0:03:10.840 thing is happening, and it was happening before the pandemic, 0:03:10.880 --> 0:03:13.560 and it'll be curious to see what happens post pandemic 0:03:13.560 --> 0:03:16.000 when things get back to so called normal. But the 0:03:16.120 --> 0:03:19.720 growth of this you know, type of class of service 0:03:20.120 --> 0:03:23.640 that is between economy and business class, and people are 0:03:23.639 --> 0:03:25.960 willing to pay more for you know, more elbow room 0:03:26.040 --> 0:03:28.960 and a little bit of a bigger seat, and it's 0:03:28.960 --> 0:03:32.280 actually pretty profitable for these airlines. That's what's interesting, right. 0:03:32.480 --> 0:03:35.000 They're figuring out how do they make more on each 0:03:35.080 --> 0:03:37.920 seat and from what I understand, the premium economy seats 0:03:38.160 --> 0:03:42.240 they occupy only ten more area than coach, but they 0:03:42.280 --> 0:03:45.480 do help make the service more profitable per square foot 0:03:45.520 --> 0:03:48.200 of a plane's cabin space than business class. Yes, I'm 0:03:48.240 --> 0:03:50.400 reading from the article, but it's all about how do 0:03:50.440 --> 0:03:53.000 you make more money out of each of those seats. Yeah, 0:03:53.000 --> 0:03:55.640 it's something interesting that's happening that happened early on when 0:03:55.640 --> 0:03:58.280 it came to commercial air travel, with the like the 0:03:58.320 --> 0:04:01.200 invention of business class, which was at the beginning only 0:04:01.200 --> 0:04:02.960 a little bit better than than coach. I just want 0:04:03.000 --> 0:04:04.880 to know, do I get peanuts? Do I get a blanket. 0:04:05.920 --> 0:04:07.920 I have no idea. I haven't flown him along time. 0:04:08.720 --> 0:04:10.920 Uh So that's the story that you definitely want to 0:04:10.960 --> 0:04:13.760 check out. There's also a story we are consistently here 0:04:13.760 --> 0:04:17.200 at Business Week looking into Zillo, best known for the 0:04:17.240 --> 0:04:20.359 addictive real estate listings that we all we all have 0:04:20.440 --> 0:04:23.400 done it. We're browsing the internet at night, checking out 0:04:23.960 --> 0:04:28.840 homes prices different regions around the country. But they are increasingly, 0:04:29.200 --> 0:04:32.440 as we know, now buying and selling homes. They're in 0:04:32.440 --> 0:04:34.800 that part of the market, and they're also now selling 0:04:34.839 --> 0:04:38.599 bonds to fund their instant home purchases, so wall streets 0:04:38.640 --> 0:04:41.480 being brought in. Yeah. In August, Zillo raised four fifty 0:04:41.640 --> 0:04:44.280 million dollars from a bond backed by homes that it's 0:04:44.320 --> 0:04:46.680 bought but not yet sold. The offering was led by 0:04:46.760 --> 0:04:49.480 Credit Suite and it was modeled on the loan facilities 0:04:49.520 --> 0:04:52.680 that car dealerships used to finance floor models. Yeah, it's 0:04:52.760 --> 0:04:55.320 it's fascinating and I think it's interesting to see how 0:04:55.320 --> 0:04:57.960 that Zillo model is evolving, and you do wonder how 0:04:58.000 --> 0:05:01.119 they are playing into maybe, let's go on the housing market. 0:05:01.160 --> 0:05:03.159 We talked this week about it's really tough to be 0:05:03.160 --> 0:05:05.680 a first time home buyer. It's hard to be able 0:05:05.680 --> 0:05:08.520 to afford it because there's so much demand for homes. 0:05:08.560 --> 0:05:11.640 So you're competing with other people who are looking for homes. 0:05:11.960 --> 0:05:17.039 You're competing with Wall Street, right, and because private equity, 0:05:17.080 --> 0:05:19.640 and you're also competing with companies like Zilo that are 0:05:19.680 --> 0:05:23.039 increasingly making this part of their model. Yeah, exactly. Hey, 0:05:23.080 --> 0:05:25.160 another story. I think it was also a Bloomberg big 0:05:25.160 --> 0:05:27.160 take this week, and this has to do with we 0:05:27.200 --> 0:05:30.840 are watching so closely the energy crisis over in Europe. Uh, 0:05:30.880 --> 0:05:34.279 and this story really tapped into how that crisis is 0:05:34.279 --> 0:05:36.679 coming for the rest of the world. I mean, millions 0:05:36.680 --> 0:05:38.560 of people around the globe are going to feel the 0:05:38.560 --> 0:05:41.080 impact of storing natural gas prices this winter. Remember when 0:05:41.120 --> 0:05:43.120 we had a glut? Not anymore. Yeah, But I found 0:05:43.160 --> 0:05:45.520 so fascinating about this is so much of this depends 0:05:45.520 --> 0:05:47.839 on the weather and how cold it is going to 0:05:47.880 --> 0:05:51.080 be this winter, and also how much wind is actually 0:05:51.160 --> 0:05:55.320 being is actually there to generate wind power exactly. So 0:05:55.680 --> 0:05:57.560 this is a story that just reminds you of the 0:05:57.560 --> 0:06:02.240 global implications of what seems to be a pending energy 0:06:02.279 --> 0:06:04.760 crisis for a lot of us. And that's an overview 0:06:04.760 --> 0:06:06.560 of this week's issue. There's a lot more in it, 0:06:06.640 --> 0:06:08.840 so be sure to check it out. Plenty more coming 0:06:08.880 --> 0:06:10.760 up into just a few minutes. You're also going to 0:06:10.880 --> 0:06:13.800 hear from a pair of venture capitalists. We'll check in 0:06:13.920 --> 0:06:16.800 with the Anthemus CEO Amy New Yorkis, she's going to 0:06:16.880 --> 0:06:19.440 talk fintech, and then we've also got a well known 0:06:19.520 --> 0:06:22.320 name in the VC space, Alan patrick Off. There's got 0:06:22.320 --> 0:06:26.480 to be a gradual tightening and inflation is much more 0:06:26.520 --> 0:06:29.720 of some concern than it was probably three or four 0:06:29.760 --> 0:06:32.320 or five months ago. I think there is an upset 0:06:32.360 --> 0:06:35.120 and that I believe do believe that the ending of 0:06:35.279 --> 0:06:38.400 unemployment benefits and special benefits fell a given as a 0:06:38.440 --> 0:06:42.320 result of COVID, which were very much needed, have now 0:06:42.360 --> 0:06:44.880 put a lot of people in a position where they're 0:06:44.880 --> 0:06:46.960 not going to have choice but had to have to 0:06:47.000 --> 0:06:49.400 go back to work. You're listening to Bloomberg Business Week. 0:06:49.480 --> 0:07:02.800 This is Bloomberg. This is Bloomberg Business Week with Carol 0:07:02.839 --> 0:07:07.080 Masser and Bloomberg Quick Takes. Tim Spinnovik from Bloomberg Radio. 0:07:08.520 --> 0:07:10.280 This week re checked in with a pair of venture 0:07:10.400 --> 0:07:13.920 capitalist that includes well known VC investor Alan patrick Off, 0:07:14.000 --> 0:07:16.560 a great Croft Ventures and Primetime Partners. We'll hear from 0:07:16.600 --> 0:07:19.080 him a little later on. First up, though, is Amy 0:07:19.120 --> 0:07:21.560 no Yakis. She's the co founder and the CEO at 0:07:21.560 --> 0:07:24.680 the digital financial services from Anthemus, as well as the 0:07:24.680 --> 0:07:27.600 founder and CEO of the media production company Archer Gray. 0:07:27.840 --> 0:07:30.160 She's been behind the launch of the Female Innovator's Lab. 0:07:30.160 --> 0:07:33.480 It's a collaboration between Anthemis and Barclay's. It's all about 0:07:33.480 --> 0:07:37.560 bringing more women into entrepreneurship, really about closing that fundraising 0:07:37.600 --> 0:07:40.000 gender gap, something we've talked about a lot here at Bloomberg. 0:07:40.320 --> 0:07:44.280 Amy spoke to us about the program's recent expansion super exciting. 0:07:44.280 --> 0:07:47.800 I mean, as you guys well know, you know, investing 0:07:47.840 --> 0:07:49.960 in diverse founders has done something we've done from the 0:07:50.040 --> 0:07:53.080 very beginning. But sometimes in doing so, you run into 0:07:53.160 --> 0:07:55.440 kind of snags that things just aren't happening fast enough. 0:07:55.480 --> 0:07:58.360 And that's precisely why we started the Female Innovator's Lab, 0:07:58.400 --> 0:08:01.200 is that two years ago we got getting frustrated about 0:08:01.200 --> 0:08:02.960 all the sort of people saying, oh, there aren't enough 0:08:02.960 --> 0:08:05.560 women to invest in, it's a pipeline issue, etcetera, etcetera, 0:08:05.640 --> 0:08:07.720 and none of it felt very honest to us, and 0:08:07.720 --> 0:08:09.960 so we said all right, let's let's let's go ahead 0:08:09.960 --> 0:08:11.840 and figure out if this is really a problem, if 0:08:11.840 --> 0:08:14.080 there's a pipeline problem. So we launched a very specific 0:08:14.160 --> 0:08:19.480 vehicle that invests exclusively in women in financial services, but 0:08:19.800 --> 0:08:22.880 very uniquely at the earliest stage of their company. So 0:08:22.960 --> 0:08:24.880 this is prec this is you know, come to us 0:08:24.880 --> 0:08:26.440 with an idea, We're gonna help you build it, We're 0:08:26.440 --> 0:08:28.400 gonna help you map it UM and then we're gonna 0:08:28.440 --> 0:08:30.440 help you get ready to launch it UM and and 0:08:30.480 --> 0:08:32.600 so we've had a lot of success. We've seen over 0:08:32.679 --> 0:08:35.360 hundreds of companies UM in the last two years, and 0:08:35.440 --> 0:08:38.000 last week we announced that we are moving from not 0:08:38.120 --> 0:08:41.360 just employing capital in the US market, but we're going 0:08:41.400 --> 0:08:43.880 to be deploying as well, doubling the size of the 0:08:43.920 --> 0:08:46.960 business in UM the UK and Europe. So it's it's great. 0:08:47.000 --> 0:08:49.240 We've we've had a lot of success with it UM, 0:08:49.280 --> 0:08:52.000 building out some really amazing company, finding some really great 0:08:52.040 --> 0:08:55.040 women UM and and you know, fifth vers of those 0:08:55.080 --> 0:08:57.760 women are also women of color, which I think UM 0:08:57.760 --> 0:09:00.439 you know, goes to the other points that will always 0:09:00.440 --> 0:09:02.960 say that they're just aren't enough women or people of 0:09:03.000 --> 0:09:05.600 color in the market to invest in and I'm calling 0:09:05.880 --> 0:09:08.480 I'm calling the BS on that one. We talked to 0:09:08.480 --> 0:09:11.439 any think back in November, I mean, the pandemic. What's 0:09:11.440 --> 0:09:14.560 been the impact on your world VC investing? Give us 0:09:14.559 --> 0:09:18.040 some context and inside if you could. Yeah, well, it's 0:09:18.080 --> 0:09:20.120 I mean it's been it's been crazy, right, I mean, 0:09:20.160 --> 0:09:23.640 it's for so many ways. And I think last time 0:09:23.640 --> 0:09:25.120 I was on we talked a lot about kind of 0:09:25.120 --> 0:09:26.720 you know what what what some of the things that 0:09:26.760 --> 0:09:29.679 we might be kind of reckoning with kind of as 0:09:29.800 --> 0:09:32.520 as the world starts to reopen and such. But I 0:09:32.559 --> 0:09:35.199 think that, Look, the last couple of years of venture 0:09:35.240 --> 0:09:38.640 capital has been unbelievable. I think that the year, you know, 0:09:39.120 --> 0:09:41.560 from the pandemic, year after it's it's been the biggest 0:09:41.640 --> 0:09:44.440 years of venture capital I've ever seen. The entire industry 0:09:44.480 --> 0:09:47.080 is deploying capital like it's never has before. And the 0:09:47.160 --> 0:09:50.640 sector that Anthemus is focused on, specifically, fintech, has been 0:09:50.679 --> 0:09:54.480 the hottest sector known to known to man, woman and child. 0:09:54.520 --> 0:09:56.960 And and it's really interesting, right because we've been doing 0:09:56.960 --> 0:09:59.720 this um at Anthemas first almost you know, going on 0:09:59.840 --> 0:10:02.720 like a decade and a half now, and to find 0:10:02.720 --> 0:10:05.720 out for the first time that we're you know, the 0:10:05.840 --> 0:10:09.160 things that we've always thought important, right, Investing in the 0:10:09.200 --> 0:10:13.280 service of trying to make change happen in the financial system, 0:10:13.320 --> 0:10:16.880 focusing on the rout founders, you know, investing for impact. 0:10:16.960 --> 0:10:19.040 All the things that really mattered to us have now 0:10:19.120 --> 0:10:22.280 become kind of the de facto conversation. And you know, 0:10:22.320 --> 0:10:25.000 it's crazy that that we're getting as much attention, but 0:10:25.040 --> 0:10:27.360 also that the world is starting to finally pay attention 0:10:27.800 --> 0:10:30.720 that the things that are so important for systemic change. 0:10:30.840 --> 0:10:32.800 Um So, in a lot of ways, I'm you know, 0:10:32.840 --> 0:10:34.679 I hate to say it, but I'm I'm feeling really 0:10:34.720 --> 0:10:38.959 bullish on on where where um the world stands from 0:10:38.960 --> 0:10:41.400 my perspective. Well, you have dozens of companies that you've 0:10:41.440 --> 0:10:47.760 invested on, including companies like Carta and Better Meant Easy Health, Fluidity, Goji, 0:10:48.080 --> 0:10:51.640 Happy Money, and more. I'm I'm wondering if if there 0:10:51.679 --> 0:10:54.720 can ever be, in your opinion, too much venture capital 0:10:54.800 --> 0:10:57.080 funding out there. I think I thought about is there 0:10:57.120 --> 0:10:58.840 too much money? We're you know, we're kind of all 0:10:58.880 --> 0:11:01.320 dealing with this sort of capital wall that that's sort 0:11:01.320 --> 0:11:03.760 of upon us in the private equity space generally. But 0:11:03.800 --> 0:11:07.439 it's about whose money, you know, who whose hands is 0:11:07.760 --> 0:11:09.839 that money in? And you know, one of the trends 0:11:09.840 --> 0:11:11.520 that we've been watching really closely and you guys have 0:11:11.640 --> 0:11:14.160 probably seen it since you dig into venture capitalists, what's 0:11:14.160 --> 0:11:16.200 been happening with a lot of these um, you know 0:11:16.240 --> 0:11:18.360 kind of mega rounds. I think there was around today 0:11:18.400 --> 0:11:21.040 where where one of the company's fanatics was a Series 0:11:21.080 --> 0:11:24.439 A at ten billion valuation, right, so you know in 0:11:24.520 --> 0:11:26.560 these kind of big investors like the Soft Bank of 0:11:26.600 --> 0:11:28.480 the World and the and the Tiger Gold was coming 0:11:28.520 --> 0:11:31.959 in and really just pumping up and getting founders excited 0:11:32.040 --> 0:11:34.640 about um the idea that they could be, you know, 0:11:34.720 --> 0:11:37.640 tomorrow a billion dollar company. And we're all out for 0:11:38.400 --> 0:11:42.480 building really great, fantastic companies. And as an investor, don't 0:11:42.480 --> 0:11:45.240 get me wrong, we love a unicorn as as well 0:11:45.280 --> 0:11:48.719 as the next. But the reality is, you know, particularly 0:11:48.760 --> 0:11:51.600 when you're deploying capital at the earliest stages, you know, 0:11:51.840 --> 0:11:57.200 seried seed preceed a B even C, you need to 0:11:57.600 --> 0:12:01.160 focus on what's really you know, how how a venture 0:12:01.160 --> 0:12:05.079 company can really scale, and that's about building resiliency. Right 0:12:05.120 --> 0:12:08.080 if you're giving a founder a check, um, you know, 0:12:08.200 --> 0:12:11.880 with no product, no market, no customers, no launch and 0:12:11.920 --> 0:12:14.240 you're saying, hey, here's a hundred million dollars and we're 0:12:14.280 --> 0:12:17.200 gonna value you immediately it's at five hundred million, go 0:12:17.320 --> 0:12:19.920 off and do it. There's a lot of danger that 0:12:19.920 --> 0:12:22.440 that sort of you know, what are they going to do? 0:12:22.720 --> 0:12:23.880 How are they going to spend that money? Are they 0:12:23.880 --> 0:12:26.400 going to deploy it respectively? How quickly are they gonna 0:12:27.240 --> 0:12:30.280 hire people? How do you maintain a good culture, hire 0:12:30.320 --> 0:12:34.320 the right people, hire for value, thelignment. It's got money 0:12:34.320 --> 0:12:36.720 burning a hole in your pocket. Amy, you're talking about, 0:12:36.800 --> 0:12:39.760 you know, fintech. Obviously that's your area where you guys 0:12:39.760 --> 0:12:44.320 are focusing on. Scott Minored. He's part of a story 0:12:44.360 --> 0:12:46.840 that is among our most right on the Bloomberg where 0:12:47.000 --> 0:12:50.160 Arsenal Bossik talked to a bunch of well known Wall 0:12:50.160 --> 0:12:53.800 Street names about the next big risks for investors, and 0:12:53.920 --> 0:12:57.520 he is concerned. His number one risk is the sustainability 0:12:57.520 --> 0:13:00.240 of the global payment system. And he's also looking yet, 0:13:00.280 --> 0:13:02.439 you know, concerns about hackers and so and so far 0:13:02.679 --> 0:13:07.320 as we increasingly when it comes to our personal and 0:13:07.600 --> 0:13:11.680 you know, institutional financial world, increasingly we are digital and 0:13:11.720 --> 0:13:14.920 digitizing all of this. How do you think about that 0:13:14.920 --> 0:13:18.600 in terms of investing and and kind of account for 0:13:18.640 --> 0:13:22.120 those worries those risks potentially. Yeah, I know, it's so 0:13:22.160 --> 0:13:24.760 incredibly important, and you know, as as the fintech investor, 0:13:24.800 --> 0:13:26.480 that's that's got to be something that that that we 0:13:26.600 --> 0:13:29.000 pay attention to all day, every day. And I think 0:13:29.000 --> 0:13:31.840 one of the challenges um certainly that that we're seeing is, 0:13:31.960 --> 0:13:34.680 you know, in the hype of of all the you know, 0:13:34.679 --> 0:13:36.360 you asked earlier about how much money is coming to 0:13:36.400 --> 0:13:39.360 the sector, and you know, if that's going to places responsibly, 0:13:39.880 --> 0:13:42.400 I think you have to be really careful that that 0:13:42.920 --> 0:13:45.640 not only the companies you're backing understand how important it 0:13:45.840 --> 0:13:49.080 is to operate and regulated markets and to focus on 0:13:49.120 --> 0:13:52.920 things like security. Because there's just so much money floating 0:13:52.920 --> 0:13:54.360 around that it gets to a point where people might 0:13:54.400 --> 0:13:55.760 just say, well, that will just be something I think 0:13:55.760 --> 0:13:58.199 about on the side, But this is the real deal, right, 0:13:58.200 --> 0:14:01.040 And when we're back a company, a lot of times 0:14:01.120 --> 0:14:05.160 just starting with with ideas that haven't yet fully formed 0:14:05.160 --> 0:14:10.120 themselves and so their systems are not mature. But you've 0:14:10.160 --> 0:14:13.400 got to be conscious if you're gonna build a startup 0:14:13.520 --> 0:14:17.480 using technology in financial services that it operates in an 0:14:17.640 --> 0:14:24.200 already regulated and and and you know, it's it's the space. 0:14:24.720 --> 0:14:26.040 I don't know. I mean, I guess I'm trying to 0:14:26.360 --> 0:14:29.160 try to to to sort of think about some of 0:14:29.200 --> 0:14:32.680 the you know, big billion billion dollar companies that we've 0:14:32.720 --> 0:14:34.640 heard about that have made some you know, haven't really 0:14:34.960 --> 0:14:37.920 been so great about paying attention to how they're protecting 0:14:37.960 --> 0:14:40.800 their customers and their consumers. And it does worry me, 0:14:41.160 --> 0:14:43.320 worry me very much. That was Amy no Yakis, the 0:14:43.320 --> 0:14:46.440 co founder and CEO at the digital financial services investment 0:14:46.480 --> 0:14:49.560 firm Anthemus, also the founder and CEO of Archer Gray 0:14:49.760 --> 0:14:51.600 Still ahead on Bloomberg Business Week too, and we're going 0:14:51.680 --> 0:14:53.880 to stay in the VC world. Stay tuned for a 0:14:53.920 --> 0:14:57.480 wide ranging conversation with Alan patrick Off of Greycroft Ventures, 0:14:57.600 --> 0:15:05.600 also of Primetime Partners. This is Bloomberg Broadcasting from the 0:15:05.680 --> 0:15:09.160 financial capital of the world, Bloomberg He Love in Frio 0:15:09.200 --> 0:15:13.160 in New York, to Washington, d C. Bloomberg to Boston, 0:15:13.280 --> 0:15:16.680 Bloomberg one oh six one to San Francisco, Bloomberg nine 0:15:16.760 --> 0:15:19.960 sixty to the country Sirius XM Chado one nine team, 0:15:19.960 --> 0:15:23.120 and around the globe the Bloomberg Business app and Bloomberg 0:15:23.200 --> 0:15:28.760 Radio dot Com. This is Bloomberg Business Week. The next 0:15:28.800 --> 0:15:31.880 guest is a familiar named our audience. He is Alan Patrick, 0:15:32.200 --> 0:15:36.120 a highly accomplished venture capitalist. He helped building grocerge companies 0:15:36.160 --> 0:15:39.920 as America Online, Office Depot, Apple Computer, and Audible, just 0:15:40.000 --> 0:15:43.080 a few well companies ready heard of them. He now 0:15:43.120 --> 0:15:45.800 serves as Chairman emeritus of Great Craft Adventurers. It's a 0:15:45.840 --> 0:15:48.280 firm that he co founded. He's also the co founder though, 0:15:48.320 --> 0:15:52.000 of Primetime Partners. Really playing into the aging population there. 0:15:52.160 --> 0:15:55.520 We started off the conversation now talking about supply chains. 0:15:55.960 --> 0:16:01.600 I echo, what the set up I'm seeing at every place? 0:16:01.640 --> 0:16:04.560 And uh, you know, people when they tend to hear 0:16:04.560 --> 0:16:07.720 this chip shortage, they think of computers, but it really 0:16:07.840 --> 0:16:13.640 permeates everything. It's medical devices, it's uh, simple things you 0:16:13.720 --> 0:16:16.760 use in the every day. It's your it's your toaster, ovens, something. 0:16:17.760 --> 0:16:22.640 Chips are every place and that's one major hole back 0:16:22.680 --> 0:16:26.280 and it's affecting a lot of industry and their shortages 0:16:26.320 --> 0:16:28.720 all over in their delays. I mean you, I'm sure 0:16:28.760 --> 0:16:31.480 you've experience yourself. It's something you wanted. They said, I'm sorry, 0:16:31.480 --> 0:16:33.080 it's going to be a one month or two months 0:16:33.440 --> 0:16:36.400 because we don't have we've all been there and get 0:16:36.400 --> 0:16:38.600 ready for the holiday seas we had We just had 0:16:38.600 --> 0:16:41.200 our ed Ludlow at on the l A Ports and 0:16:41.240 --> 0:16:43.800 just you see all the container ships just you know, 0:16:43.840 --> 0:16:45.640 piling up. And I want to go back to something 0:16:45.640 --> 0:16:47.480 that you said, because you mentioned members of Congress, and 0:16:47.520 --> 0:16:49.480 I think a lot of people listening right now would say, 0:16:49.480 --> 0:16:52.440 wait a second. We don't really see many guard rails 0:16:52.480 --> 0:16:54.680 on what members of Congress are are not allowed to 0:16:54.720 --> 0:16:57.280 do when it concentrating activity, and it's come under screening 0:16:57.320 --> 0:16:59.960 many times in recent years. Do you think their neat 0:17:00.000 --> 0:17:02.640 to be more? There needs to be more regulation about 0:17:02.640 --> 0:17:04.720 what members of Congress cannon can't do when it comes 0:17:04.720 --> 0:17:08.399 to buying and selling stocks, whether it's judges or people 0:17:08.400 --> 0:17:11.640 in political positions. We want to feel that they are 0:17:11.760 --> 0:17:16.080 independent and their user independent, and there couldn't possibly be advised. Now. 0:17:16.119 --> 0:17:20.040 I am not accusing or even thinking that people are 0:17:20.320 --> 0:17:24.399 you know, wantedly violating rules and taking advantage of it, 0:17:24.480 --> 0:17:27.960 but there there should be something in place in general 0:17:28.040 --> 0:17:32.000 that just eliminates that possibility. And and I do wonder 0:17:32.040 --> 0:17:35.600 about you know, company CEO s leaders that you talked to, 0:17:36.200 --> 0:17:39.080 portfolio companies that you guys are invested in. Are you 0:17:39.160 --> 0:17:42.399 hearing from everyone that it's just really difficult out there 0:17:42.400 --> 0:17:45.760 when it comes to the supply chain, It's pervasive. That's 0:17:45.760 --> 0:17:47.560 why I say, I don't think it makes any difference 0:17:47.560 --> 0:17:51.240 what industry, whether you're in cybersecurity area or whether you're 0:17:51.240 --> 0:17:54.919 in a new medical device or I'm sure boat manufacturers 0:17:54.960 --> 0:17:59.360 have the problem of supply sources for their radar systems. 0:17:59.400 --> 0:18:02.320 I mean, it's uh for in for red system. I mean, 0:18:02.320 --> 0:18:07.840 it's just that there is definitely a backlog created by 0:18:07.840 --> 0:18:11.400 the pandemic, created by lack of personnel and a lot 0:18:11.400 --> 0:18:13.760 of companies who were down. How do you see the economy? 0:18:14.040 --> 0:18:15.879 You can only imagine and I'm sure you have it 0:18:16.320 --> 0:18:19.439 with colleagues and friends and peers. How many conversations that 0:18:19.520 --> 0:18:22.160 we obviously have about just trying to figure out where 0:18:22.200 --> 0:18:24.320 we are in this economy. Certainly coming on the heels 0:18:24.320 --> 0:18:27.160 of last week's FED meeting, you know where j Palell 0:18:27.240 --> 0:18:30.760 not worried really about inflation. Um, a lot of metrics 0:18:30.760 --> 0:18:33.480 have gotten better, but there's still a lot to improve. 0:18:34.480 --> 0:18:36.800 How do you see where we are in this economy 0:18:36.960 --> 0:18:39.960 and where we're going? It? Is the FED policy appropriate 0:18:39.960 --> 0:18:42.840 in your view? Yeah? I think it is appropriate, and 0:18:42.840 --> 0:18:45.800 I think that uh, there there's got to be a 0:18:45.840 --> 0:18:51.679 gradual tightening, and uh inflation is much more of some 0:18:52.119 --> 0:18:54.920 concern than it was probably three or four or five 0:18:54.960 --> 0:18:57.399 months ago. I think there is an upset and that 0:18:57.520 --> 0:19:01.680 I believe do believe that the ending of the unemployment 0:19:01.680 --> 0:19:04.560 benefits and special benefits fially given as a result of 0:19:04.600 --> 0:19:08.920 the COVID, which were very much needed, UH, have now 0:19:08.960 --> 0:19:11.760 put a lot of people in a position where, uh 0:19:11.840 --> 0:19:13.919 they're not going to have choice but had to have 0:19:14.080 --> 0:19:15.639 to go back to work. So I think we're going 0:19:15.680 --> 0:19:21.920 to gradually see the employment picture. UH continue to approve 0:19:22.359 --> 0:19:25.399 as people, but we do. We do still continue out 0:19:25.480 --> 0:19:28.240 and to hear from executives at companies around the country 0:19:28.320 --> 0:19:31.120 that have such a hard time getting talent right now, 0:19:31.160 --> 0:19:34.440 whether that's in warehouses or in the c suite. And 0:19:34.520 --> 0:19:37.119 I wonder what your portfolio companies are telling you about 0:19:37.160 --> 0:19:39.280 trying to get talent right now. We had frankat Sutas 0:19:39.320 --> 0:19:41.959 from Cisco Systems on last week and she said, you know, 0:19:42.160 --> 0:19:45.560 they're raising their salaries what, Carol was five percent? Yeah, 0:19:45.600 --> 0:19:49.560 pretty and in order to get people to come work 0:19:49.600 --> 0:19:51.719 for them. What are you hearing from your portfolio companies 0:19:52.280 --> 0:19:57.040 the same ditto. I mean, it's everybody's having problems. On 0:19:57.080 --> 0:20:00.480 the other hand, uh, it is pushing wages up, which 0:20:00.520 --> 0:20:03.600 is an inflation factor. So I think that we're going 0:20:03.640 --> 0:20:05.960 to see more of that, and uh, you know, the 0:20:06.000 --> 0:20:09.560 minimum wage may end up being an academic discussion in 0:20:09.640 --> 0:20:11.680 terms of what people really are having to pay to 0:20:11.760 --> 0:20:18.000 attract people to join the workforce. But I I see 0:20:18.040 --> 0:20:22.600 that gradually evening itself as certainly as soon as people 0:20:22.640 --> 0:20:26.320 have are fully vaccinated, all these things are going to 0:20:26.400 --> 0:20:29.800 work towards a better situation, certainly as we go into 0:20:29.800 --> 0:20:33.240 the Christmas season and and uh coming into the spring. 0:20:33.359 --> 0:20:36.600 So I think that I think this thing will work 0:20:36.640 --> 0:20:39.159 itself out. But at the moment, I can see a 0:20:39.160 --> 0:20:42.960 lot of inflation prescious appearing. That's Alan patrick Off, chairman 0:20:43.000 --> 0:20:46.000 emeritus and co founder great Croft Ventures. He's also co 0:20:46.080 --> 0:20:48.840