WEBVTT - War In Ukraine's Affect On Technology Companies 0:00:02.720 --> 0:00:06.000 From the heart of where innovation, money and power COLLI 0:00:06.840 --> 0:00:11.360 in Silicon Valley and beyond. This is Bloomberg Technology with 0:00:11.400 --> 0:00:27.200 Emily Jay. I'm Emily checking San Francisco and this is 0:00:27.240 --> 0:00:30.320 Bloomberg Technology coming up in the next hour. Gas price 0:00:30.440 --> 0:00:33.720 pain Uber and lift drivers take home pay plummeting as 0:00:33.800 --> 0:00:37.240 gas prices shore Are the ride chain companies doing enough 0:00:37.360 --> 0:00:42.080 to help? Plus? Google and Apple Maps can't escape politics? 0:00:42.159 --> 0:00:46.600 How mapping technology has become increasingly complicated as Russia rains 0:00:46.640 --> 0:00:51.080 down on Ukraine and relief efforts to help millions of 0:00:51.159 --> 0:00:53.960 ukraining refugees and residents who have stayed behind. We're gonna 0:00:53.960 --> 0:00:57.640 talk with flex Sport about the challenging logistics of providing 0:00:57.720 --> 0:01:02.240 humanitarian a and how the war is royally global supply chains. 0:01:10.800 --> 0:01:15.119 Russia's government is moving closer to seizing and even nationalizing 0:01:15.160 --> 0:01:18.080 foreign owned companies that are leaving the market over the 0:01:18.120 --> 0:01:21.880 invasion of Ukraine, while planning measures to coax others in disdaying. 0:01:22.760 --> 0:01:25.600 Creton Harrison with us now to discuss. So Creton, what 0:01:26.680 --> 0:01:28.920 what companies is Russia trying to take control of, or 0:01:28.959 --> 0:01:31.840 even temporary control of, and how would the government actually 0:01:31.840 --> 0:01:34.240 pull this off? Yeah, they're not they're not revealing a 0:01:34.240 --> 0:01:36.880 lot of their plan here about what kinds of things 0:01:36.880 --> 0:01:39.000 they would want to take over. You can make some 0:01:39.120 --> 0:01:42.800 guesses based on there's there's even some public comments from 0:01:42.840 --> 0:01:45.479 from officials in Russia that have been walked out by 0:01:45.480 --> 0:01:49.000 other agencies about some of the aircraft that's in in 0:01:49.080 --> 0:01:52.120 Russia right now that's owned by lessers and whether they 0:01:52.200 --> 0:01:54.640 might see some of that. So that's just one example. 0:01:55.040 --> 0:01:57.160 There's a Russian agency who is that don't know, we're 0:01:57.200 --> 0:02:00.280 not going to say necessarily do that. That person spoke 0:02:00.280 --> 0:02:02.800 out of turn. So this is a very confusing time. 0:02:02.840 --> 0:02:05.600 But with what the action of the government would allow 0:02:05.640 --> 0:02:07.600 them to do. Is it says that if there's a 0:02:07.600 --> 0:02:10.720 company where uh, you know, you have you have Russian 0:02:10.840 --> 0:02:14.000 members of a board and maybe that's for the local 0:02:14.040 --> 0:02:17.440 operating unit or something like that, that that might be 0:02:17.760 --> 0:02:21.760 a company that that that could be uh taken over, 0:02:22.360 --> 0:02:24.639 uh at least on temporary basis. So this is this 0:02:24.720 --> 0:02:27.840 is very very fuzzy and can be interpreted a lot 0:02:27.880 --> 0:02:29.760 of different ways. It probably will be interpreted a lot 0:02:29.760 --> 0:02:32.240 of different ways depending on what happens in the in 0:02:32.280 --> 0:02:35.040 the weeks to come. If you're a company the this 0:02:35.240 --> 0:02:38.560 operating in Russia was until very recently operating in Russia. 0:02:38.880 --> 0:02:41.600 I guarantee you looking at this very seriously and trying 0:02:41.600 --> 0:02:43.920 to figure out what it means for you. But all 0:02:43.960 --> 0:02:46.040 the companies we've we've tried to reach out about this, 0:02:46.360 --> 0:02:49.760 including uh Larry Culp, the CEO of a General Electric 0:02:49.760 --> 0:02:53.640 who was on Bloomberg Television earlier today, are so far saying, uh, 0:02:53.680 --> 0:02:57.400 they don't see any immediate concern of any assets seizure. 0:02:57.480 --> 0:02:58.919 So this is this is something that's going to play 0:02:58.919 --> 0:03:01.239 out for a while at this stage. And of course 0:03:01.280 --> 0:03:04.960 we just reported on Goldman already moving employees out of 0:03:04.960 --> 0:03:09.160 the country. What can companies do to avoid this? Faith Yeah, 0:03:09.200 --> 0:03:11.680 I mean, as we've seen all week, you know, companies 0:03:11.680 --> 0:03:14.000 have been very careful in their language about what they're 0:03:14.120 --> 0:03:17.239 doing when they stop doing business and rushing. You see 0:03:17.280 --> 0:03:21.520 the words suspended or paused quite a bit. In many cases. 0:03:21.720 --> 0:03:24.960 McDonald's was a very prominent example of this. Companies are 0:03:24.960 --> 0:03:28.520 continuing to pay employees at the local level. You can 0:03:28.600 --> 0:03:32.080 think of that as one potential strategy here to avoid 0:03:32.080 --> 0:03:35.400 getting nationalized. They're having assets c s because you can 0:03:35.480 --> 0:03:38.200 argue that you're still in the country. You're still paying 0:03:38.400 --> 0:03:41.600 Russian employees. You're still there as a business entity. You're 0:03:41.640 --> 0:03:44.640 just not actually, you know, doing business at the moment, 0:03:44.720 --> 0:03:47.760 but you plan to eventually, so that that maybe one 0:03:47.840 --> 0:03:50.640 tack the companies are trying to take to protect their 0:03:50.680 --> 0:03:54.400 long term interests here. Um. Ultimately, though, you know, if 0:03:54.440 --> 0:03:57.360 you have money in in the Russian economy that you 0:03:57.400 --> 0:03:59.680 can use to pay workers, at some point, you've got 0:03:59.680 --> 0:04:01.760 to figure out how to replenish that that could run 0:04:01.760 --> 0:04:04.440 out at some point depending on how long, uh, this 0:04:04.520 --> 0:04:08.600 situation takes to unfold. Uh, you know, you you could 0:04:08.760 --> 0:04:10.880 have a situation where companies that were trying to hang 0:04:10.920 --> 0:04:13.760 on by paying employees might have to might have to 0:04:13.760 --> 0:04:18.400 make another decision. All right, question again, what does this 0:04:18.440 --> 0:04:21.920 mean for everyday people in Russia? Bloombergs, Creighton Harrison, thank 0:04:21.960 --> 0:04:26.160 you for that context. Meantime, everyone feeling the pain at 0:04:26.200 --> 0:04:29.000 the pump, especially drivers for Uber and Left as the 0:04:29.000 --> 0:04:32.280 war in Ukraine drives gas prices in the US to 0:04:32.440 --> 0:04:36.880 an all time high. Bloombergs Jackie Dablos as a story, Jackie, 0:04:36.880 --> 0:04:40.440 in California, I saw prices as high as seven dollars, 0:04:40.520 --> 0:04:44.599 I mean, unprecedented. How are drivers dealing with this, well, 0:04:44.839 --> 0:04:48.919 this is truly taking um a huge cut out of 0:04:48.920 --> 0:04:53.520 their take home pay, and the impact has really been indiscriminate. 0:04:53.920 --> 0:04:57.640 We saw drivers that are driving fuel efficient cars a 0:04:57.760 --> 0:05:01.679 prius even that are seeing their gas bill go from 0:05:01.720 --> 0:05:06.080 ten percent to six of their net earnings. This is 0:05:06.120 --> 0:05:10.320 just completely unprecedented and it's really making them reevaluate. Is 0:05:10.400 --> 0:05:15.000 this side hustle even worth it? And what are the 0:05:15.000 --> 0:05:18.359 companies doing about it? Are they doing enough? What drivers 0:05:18.400 --> 0:05:20.960 tell me is that it's not enough. You know, they 0:05:21.160 --> 0:05:25.520 have partnerships with this app, for example, called get Upside, 0:05:25.520 --> 0:05:28.120 and it's effectively a rewards app that gives you cash 0:05:28.200 --> 0:05:31.599 back for your fuel purchases. But drivers tell me that 0:05:31.640 --> 0:05:34.640 this is really a laughable solution and it it's not sustainable. 0:05:34.760 --> 0:05:38.200 As you said, gas prices are upwards of seven dollars. 0:05:38.279 --> 0:05:40.599 You know. Once driver spoke with me and he said 0:05:40.640 --> 0:05:43.679 he was paying upwards of five dollars. He's losing money 0:05:43.839 --> 0:05:46.719 every ride he takes. He does not have the option 0:05:46.760 --> 0:05:49.640 to quit the app, but it does beg the question 0:05:50.040 --> 0:05:53.040 should companies be on the hook for helping them more, 0:05:53.160 --> 0:05:57.000 especially because as independent contractors, they're the ones footing the 0:05:57.000 --> 0:06:02.320 bill for every single expense. Now, the President himself has said, Look, 0:06:02.880 --> 0:06:05.600 the American people are going to have to be prepared 0:06:05.640 --> 0:06:07.880 for a certain amount of sacrifice and a certain amount 0:06:07.880 --> 0:06:10.240 of pain if the United States is going to take 0:06:10.600 --> 0:06:14.160 this kind of a stand against Russia. In talking to drivers, 0:06:14.440 --> 0:06:19.200 do they understand do they sympathize with with the Ukrainian 0:06:19.240 --> 0:06:21.920 people and what the United States is trying to do here? 0:06:22.520 --> 0:06:25.320 There definitely is a huge tension there. You know, they 0:06:25.480 --> 0:06:30.200 completely sympathize. However, they've been putting up with high gas 0:06:30.240 --> 0:06:34.080 prices and the impacts of inflation for months. It's been 0:06:34.160 --> 0:06:38.080 acknowledged by you know, even uber CEO. It's not the 0:06:38.120 --> 0:06:41.120 first time that they've raised the alarm about the impact 0:06:41.160 --> 0:06:43.359 of gas prices. And this just seems to be a 0:06:43.440 --> 0:06:47.000 real breaking point for so many And so while they 0:06:47.000 --> 0:06:50.480 I think they understand the broader plight of the Ukrainian 0:06:50.560 --> 0:06:54.600 people and the complex nature of the conflict, um, I 0:06:54.640 --> 0:06:57.640 think at this point they have enough options out there 0:06:57.680 --> 0:07:01.800 within the gig economy from door dash in to cart lift. Uh, 0:07:01.839 --> 0:07:04.800 you know, there are other places to go um even 0:07:04.839 --> 0:07:07.400 outside the gig economy as well. So it's something they're considering, 0:07:08.040 --> 0:07:10.080 And what does that mean for consumers and riders, are 0:07:10.160 --> 0:07:13.560 prices going to go up? You know, we've already seen 0:07:13.640 --> 0:07:16.120 high fares for a while due to the driver's shortage 0:07:16.160 --> 0:07:19.680 and gas prices. What Uber had to say, for example, uh, 0:07:19.920 --> 0:07:26.160 is that for every increase from today's average gas price levels, 0:07:26.760 --> 0:07:31.160 because consumers will only see a one percent increase in fares. Now, 0:07:31.200 --> 0:07:35.000 that may sound small, but when you take into account 0:07:35.200 --> 0:07:38.320 how quickly demand is coming back and supply is not 0:07:38.520 --> 0:07:42.520 shifting as quickly to meet that demand, we're going to 0:07:42.600 --> 0:07:45.880 see elevated fares for at least a few more months 0:07:45.960 --> 0:07:49.040 until they're able to sort through that supply issue. And yes, 0:07:49.120 --> 0:07:52.840 gas prices will eventually start to trickle down to how 0:07:52.920 --> 0:07:56.400 much we're paying um in fares overall as well. All right, 0:07:56.560 --> 0:07:59.320 Jackie Dabolos who covers Uber and lift for I thank 0:07:59.440 --> 0:08:02.800 Jackie for that update. Coming up, Apple and Google maps 0:08:02.840 --> 0:08:05.880 in the crosshairs of the war on Ukraine. How space, 0:08:06.160 --> 0:08:10.800 satellite and big tech companies are navigating geo political termoil. 0:08:11.120 --> 0:08:38.640 That's next, This is Blueberg. Soon after Russia launched its 0:08:38.679 --> 0:08:41.959 invasion of Ukraine, Google and Apple disabled key features of 0:08:42.000 --> 0:08:45.000 their map services. They're including real time vehicle and foot 0:08:45.040 --> 0:08:48.839 traffic data. This out of concern that live insights into 0:08:48.880 --> 0:08:51.640 what streets or shops were busy could be exploited by 0:08:51.720 --> 0:08:55.520 Russian forces to harm Ukrainian citizens. In fact, the nuances 0:08:55.640 --> 0:08:58.640 of mapping has become significantly more of a political hot 0:08:58.679 --> 0:09:00.959 potato in just the last two weeks. I want to 0:09:01.000 --> 0:09:03.640 talk about that in more. Chad Anderson, founder and managing 0:09:03.679 --> 0:09:06.679 partner of Space Capital, in early stage venture capital from 0:09:06.679 --> 0:09:10.600 that invests exclusively in space based technologies and chat. Many 0:09:10.600 --> 0:09:14.760 of these space based technologies are delivering information to these 0:09:14.800 --> 0:09:18.079 big tech giants that enabled them to change these digital 0:09:18.120 --> 0:09:21.200 maps in real time. What do you make of the 0:09:21.400 --> 0:09:27.320 this new if you will, digital battlefield? Certainly true. The 0:09:27.400 --> 0:09:31.079 Russian invasion of Ukraine has really spotlighted the strategic importance 0:09:31.080 --> 0:09:36.040 of space infrastructure for the US and are allied satellite constellations. 0:09:36.280 --> 0:09:40.360 Spaces is clearly a target and among the critical domains 0:09:40.360 --> 0:09:43.800 to protect as this as this UM conflict unfolds. You 0:09:43.800 --> 0:09:46.360 know with the Google Maps UM and and and Apple 0:09:46.400 --> 0:09:50.760 Maps scenario, they this is some of the first information 0:09:50.800 --> 0:09:54.280 that we got about UM. The Russian invasion UM came 0:09:54.320 --> 0:09:58.440 about because of the traffic information from Google Maps. So um, 0:09:58.480 --> 0:10:01.440 you know, these companies have have decided to turn off 0:10:01.520 --> 0:10:04.120 that functionality. They're still getting turned by turn directions, but 0:10:04.160 --> 0:10:07.600 they've turned off the traffic and foot traffic functionality because 0:10:08.120 --> 0:10:11.920 it can alert the other side as to um where 0:10:12.559 --> 0:10:16.680 Ukrainians are. Um and and as well it goes both ways. 0:10:16.840 --> 0:10:20.640 But they've decided to turn it off to protect those 0:10:20.679 --> 0:10:23.679 those citizens in the Kuran. Well and at what point 0:10:23.679 --> 0:10:28.079 does that potentially undermine Ukrainian effort to resist the invasion 0:10:28.320 --> 0:10:31.160 or flee to safety? I mean, have we outsourced too 0:10:31.240 --> 0:10:35.760 much power, too big tech. Well, they've turned it off. 0:10:35.760 --> 0:10:40.680 From a global perspective, UM, I'm not privy to who 0:10:40.760 --> 0:10:44.480 they've turned it on and off for, so UM, I 0:10:44.480 --> 0:10:49.679 imagine that companies have um this type of functionality and capability. 0:10:50.640 --> 0:10:53.040 So let's talk about the space companies that are getting 0:10:53.160 --> 0:10:57.920 dragged into this mess. These satellite technology companies that you 0:10:57.960 --> 0:11:01.679 know have been floating around owned relatively quiet outside of 0:11:01.720 --> 0:11:04.240 the ear It's atmosphere, but suddenly find themselves in the 0:11:04.280 --> 0:11:09.439 middle of this geopolitical mess. Yeah. I mean, this crisis 0:11:09.480 --> 0:11:14.280 has really highlighted the growing capabilities of commercial satellite companies. UH, 0:11:14.280 --> 0:11:19.000 companies like max Are and Planet and Black Sky are 0:11:19.080 --> 0:11:22.400 providing observations of what's happening on the ground, so we're 0:11:22.400 --> 0:11:26.480 getting really ground truth and this is vital information for 0:11:26.520 --> 0:11:30.400 anyone trying to keep up UM from a humanitarian perspective 0:11:30.520 --> 0:11:35.960 or monitoring the situation UM military, civilian. This is giving us, 0:11:36.000 --> 0:11:37.920 you know, without the spin, we're able to see with 0:11:37.960 --> 0:11:41.079 our own eyes what's actually happening on the ground. And 0:11:41.320 --> 0:11:44.360 I think that the amount of data that's available today 0:11:44.600 --> 0:11:48.640 is really unprecedented. This open source information is is really 0:11:48.640 --> 0:11:52.280 important for everyone involved, including the reporters that are on 0:11:52.320 --> 0:11:54.920 the ground UM looking to tie the pieces of the 0:11:54.960 --> 0:11:59.680 story together. We also saw Elon Musk's starlink very publicly 0:12:00.160 --> 0:12:04.120 to the aid of the Ukrainian people, and it just 0:12:04.320 --> 0:12:08.000 sort of drives a point home about how powerful and 0:12:08.040 --> 0:12:10.960 impactful these technologies can be in terms of just changing 0:12:11.000 --> 0:12:15.520 the shape of of modern communication. You know what kind 0:12:15.559 --> 0:12:18.880 of risks do these companies face and how are they 0:12:19.000 --> 0:12:25.240 navigating these challenges internally? Certainly, I mean SpaceX turn Starling 0:12:25.400 --> 0:12:29.160 on their satellite communications constellation made it available in the 0:12:29.280 --> 0:12:34.600 Ukraine UM upon request, and it's really showcasing you know 0:12:35.280 --> 0:12:37.920 what a capability like this can provide in terms of 0:12:38.280 --> 0:12:43.479 redundancy and capability. I mean they're providing vital communications services 0:12:43.640 --> 0:12:49.680 UM where in a previous era, UM the invading country 0:12:49.679 --> 0:12:54.040 could just attack the fiber lines and and or attack 0:12:54.080 --> 0:12:56.280 in some other way and shut off the Internet. So 0:12:56.320 --> 0:13:01.320 we really have resilient communications and can activity here, which 0:13:01.400 --> 0:13:05.400 is also essential in terms of getting vital fact truth, 0:13:05.559 --> 0:13:08.680 you know, like from the source information. And we talked 0:13:08.679 --> 0:13:11.559 about a lot about this in our our latest thesis paper, 0:13:11.600 --> 0:13:15.040 this dot com Playbook. The nature of satellite communications is 0:13:15.080 --> 0:13:18.200 going through a fundamental shift. I mean it's going from 0:13:18.240 --> 0:13:21.920 being a niche comms product making up about less than 0:13:21.960 --> 0:13:26.160 a percent of global broadband Internet to being a Internet 0:13:26.160 --> 0:13:29.640 backbone in space where we could see twenty times the 0:13:29.679 --> 0:13:33.680 capacity come online in the next five years at latency 0:13:33.760 --> 0:13:36.920 that rivals terrestrial and there's not much that Russia can 0:13:36.960 --> 0:13:40.640 do about it. From a practical perspective. Um Elon Muska 0:13:40.720 --> 0:13:43.640 said that they can shake their fist at the sky. UM. 0:13:43.679 --> 0:13:46.560 You know, Russia's trying to jam those signals now, but 0:13:46.960 --> 0:13:49.400 UM SpaceX is able to overcome that with a simple 0:13:49.440 --> 0:13:53.400 software update, So you know. Cybersecurity is also a key 0:13:53.600 --> 0:13:57.200 a key area here for companies and and military as well. 0:13:58.000 --> 0:14:01.559 It's really a fascint nating domain given that a lot 0:14:01.559 --> 0:14:04.439 of these companies are often fielding requests from governments to 0:14:04.520 --> 0:14:08.040 draw the maps a certain way than sometimes showing different 0:14:08.080 --> 0:14:11.520 maps in different countries, and you wonder how they can, 0:14:11.840 --> 0:14:14.960 you know, overcome some of the transparency or lack of 0:14:15.000 --> 0:14:20.080 transparency issues there. Chat Anderson Foundery, managing partner of Space Capital. 0:14:20.200 --> 0:14:34.520 Thank you for helping us work through that time. Now 0:14:34.560 --> 0:14:38.120 for our crypto report. With bitcoin dropping back below forts 0:14:38.120 --> 0:14:41.960 in eracing nearly all gains from the optimism surrounding President 0:14:42.000 --> 0:14:46.720 Biden's executive order on crypto, Bitcoin and other cryptocurrencies are 0:14:46.720 --> 0:14:50.800 now falling, with stocks amid high inflation data continued ga 0:14:50.840 --> 0:14:54.600 political turmoil. As we continue to watch this situation in Ukraine, 0:14:54.680 --> 0:14:58.000 I want to get all get more on this and 0:14:58.120 --> 0:15:00.760 the future of their new crypto fund. Michelle Buy a 0:15:00.800 --> 0:15:06.200 partner at Sequoia Capital, which recently launched such a new fund. Michelle, 0:15:06.200 --> 0:15:08.560 thank you so much for joining us. Of course, Sequoia 0:15:08.720 --> 0:15:10.680 is not new to crypto investing, but this is the 0:15:10.680 --> 0:15:14.360 first time you've launched a sector specific fund. Why and 0:15:14.400 --> 0:15:17.880 why now? Yes, thank you so much for having the Emily, 0:15:17.920 --> 0:15:20.680 it's great to be here. We've been investing in crypto 0:15:20.760 --> 0:15:24.960 for several years, over five years now, and in getting 0:15:24.960 --> 0:15:28.120 feedback from our founders about the best products to serve them, 0:15:28.400 --> 0:15:31.360 realize that we served equity based crypto company is very 0:15:31.400 --> 0:15:34.800 well with our seed, venture and growth products all the 0:15:34.840 --> 0:15:36.400 way from seed to I p O, but that we 0:15:36.440 --> 0:15:39.160 could do more for token based crypto companies. And so 0:15:39.280 --> 0:15:41.720 this new fund is allowing us to take a more 0:15:41.760 --> 0:15:45.080 active management role with our liquid tokens and will complement 0:15:45.080 --> 0:15:47.600 our broader efforts. And we thought this was a great 0:15:47.640 --> 0:15:50.160 time because it was, you know, given driven by feedback 0:15:50.160 --> 0:15:52.880 from our founders, but also because cryptos at such an 0:15:52.880 --> 0:15:56.800 inflection point in terms of both users and talent entering 0:15:56.800 --> 0:15:58.880 the space. We think we're just at the beginning of 0:15:59.240 --> 0:16:01.920 an s curve that will see pick up dramatically over 0:16:01.920 --> 0:16:05.840 the next decade. Now. Sekoia has invested in bitcoin and 0:16:05.880 --> 0:16:09.600 etherium itself, for example, but also in companies like f 0:16:09.720 --> 0:16:13.520 t X. When it comes to the token side, water 0:16:13.640 --> 0:16:19.520 tokens and blockchains that you find particularly interesting, it's a 0:16:19.560 --> 0:16:22.720 great question. I think we watch the developer momentum on 0:16:22.800 --> 0:16:25.520 each layer one blockchain and several of the layer two's 0:16:25.760 --> 0:16:29.040 very closely. That's an important signal for us. And so 0:16:29.360 --> 0:16:32.280 bitcoin has a particular type of community and a particular 0:16:32.360 --> 0:16:34.520 use case. You see something's being built out with a 0:16:34.720 --> 0:16:37.640 lightning network. Uh that one of the companies we are 0:16:37.760 --> 0:16:41.280 privileged to partner with Square now Block is very involved 0:16:41.320 --> 0:16:45.400 with as well as then on Ethereum tremendous applications development 0:16:45.520 --> 0:16:49.640 and decentralized finance and f t S web applications. And 0:16:49.640 --> 0:16:51.960 then we've also seen a lot of developer uptick on 0:16:52.160 --> 0:16:56.360 Salana and some newer chains like Avalanche near Cosmos, and 0:16:56.400 --> 0:16:58.960 so we watch all of that very closely, and that's 0:16:58.960 --> 0:17:01.600 how we determine where we wanna, you know, double down 0:17:01.680 --> 0:17:04.840 or spend our time in terms of those different ecosystems. Now, 0:17:04.920 --> 0:17:08.800 last year of Sequoia's new investments in as I understand 0:17:08.800 --> 0:17:10.720 at the US and Europe or in crypto, that's a 0:17:10.760 --> 0:17:14.400 really big part of the pie for a long time 0:17:14.480 --> 0:17:18.560 more traditional tech venture capital firm. Do you see that 0:17:18.680 --> 0:17:22.159 portion of the pie rising into Is this going to 0:17:22.240 --> 0:17:27.360 become an even bigger part of Sequoia's portfolio? I personally 0:17:27.440 --> 0:17:29.760 do as someone who spends all my time in crypto. 0:17:29.960 --> 0:17:34.320 I think there are just tremendously talented founders entering the 0:17:34.400 --> 0:17:38.600 space and more and more engineers, developers, designers who are 0:17:38.600 --> 0:17:43.000 excited about building in all aspects of crypto, and so 0:17:43.119 --> 0:17:45.840 I think that will only increase over time. We have 0:17:45.920 --> 0:17:48.800 Sequoia have a thesis that that crypto is going to 0:17:48.840 --> 0:17:53.199 impact both the financial sector as well as broader Internet services, 0:17:53.480 --> 0:17:58.160 so that's consumer and enterprise, and so we expect crypto 0:17:58.200 --> 0:18:01.320 to eventually be uh in all of those sectors. And 0:18:01.440 --> 0:18:03.680 I would I would expect that everyone at Sequoia is 0:18:03.720 --> 0:18:07.600 eventually a crypto investor. You've talked about how this is 0:18:07.600 --> 0:18:10.840 gonna be very different from traditional venture capital investing. Tell 0:18:10.920 --> 0:18:13.240 us a little bit more about the fund structure. How 0:18:13.280 --> 0:18:16.840 are your investments in in crypto and the cryptocurrency industry? 0:18:16.840 --> 0:18:19.360 Is going to be different than what we've seen Tekoia 0:18:19.440 --> 0:18:24.000 do before. Yes, So what's interesting about investing in more 0:18:24.040 --> 0:18:27.720 traditional equity based startups is that you effectively get a 0:18:27.720 --> 0:18:29.760 piece of paper that says you own a portion of 0:18:29.760 --> 0:18:31.639 a company, and you don't really do much with that 0:18:31.680 --> 0:18:34.040 piece of paper. Over the next several years, you help 0:18:34.080 --> 0:18:36.800 the company grow, of course, but the piece of paper 0:18:36.880 --> 0:18:40.239 is sort of irrelevant. In crypto, it's quite different in 0:18:40.240 --> 0:18:43.160 that if you are getting a token, you can actually 0:18:43.560 --> 0:18:45.840 use that token to the benefit of the company or 0:18:45.880 --> 0:18:48.680 the project. And so what we can do now more 0:18:48.800 --> 0:18:52.480 flexibly is be able to, for instance, steak our tokens 0:18:52.480 --> 0:18:54.880 to help secure a proof of state network. We could 0:18:54.880 --> 0:18:58.280 provide liquidity to protocols uh and just do a lot 0:18:58.320 --> 0:19:02.880 more activity with our token then you would with an equity. 0:19:03.200 --> 0:19:05.800 So obviously we've seen a ton of activity in the 0:19:05.800 --> 0:19:08.199 crypto space. We've seen the power of crypto to be 0:19:08.320 --> 0:19:11.640 used to support war efforts. In the Ukraine, for example, 0:19:11.680 --> 0:19:15.120 there's concerned about crypto being used by Russians who should 0:19:15.119 --> 0:19:19.080 be facing sanctions to circumvent those sanctions. What's your take 0:19:19.160 --> 0:19:22.480 on how the war on Ukraine is impacting the crypto 0:19:22.760 --> 0:19:27.240 space and where this is headed. Yeah, well, first, I mean, 0:19:27.680 --> 0:19:30.640 we are all heartbroken by what we're watching. It's certainly 0:19:30.840 --> 0:19:34.040 HiT's very close to home. Sequoia has Ukrainians who have 0:19:34.280 --> 0:19:38.080 Ukrainian family, we have companies who have you know, employees 0:19:38.160 --> 0:19:41.440 in Ukraine, and of course many users, and so it's 0:19:41.480 --> 0:19:44.240 something that we watch every day and our heart goes 0:19:44.280 --> 0:19:45.639 out to all of them, and we do all that 0:19:45.680 --> 0:19:48.520 we can. We're really proud of the way that our 0:19:48.600 --> 0:19:52.040 crypto and other companies have stepped up to support all 0:19:52.119 --> 0:19:55.280 the efforts. So I've worked very closely with Sam and 0:19:55.320 --> 0:19:57.919 the team at f t X. They've gone above and 0:19:57.960 --> 0:20:00.760 beyond to both donate to you, creating and users on 0:20:00.760 --> 0:20:03.760 the platform, as well as comply with all sanctions, which 0:20:03.760 --> 0:20:06.399 they are very capable of doing. It's often a misnomer that, 0:20:06.640 --> 0:20:10.360 you know, cryptocompanies can't They can certainly comply with sanctions 0:20:10.440 --> 0:20:12.240 and and they and all the companies we work with 0:20:12.320 --> 0:20:15.639 will um and so we are. And then there are 0:20:15.680 --> 0:20:19.480 other companies. Airbnb has been, you know, offering housing and 0:20:19.520 --> 0:20:23.000 so folks are doing everything that they can to support 0:20:23.880 --> 0:20:28.440 Ukraine and comply with all all of the efforts for sanctions. 0:20:29.160 --> 0:20:32.600 And do you look at cryptocurrency as a safe haven 0:20:32.680 --> 0:20:36.560 or a safer asset than a traditional equity in this moment? 0:20:36.640 --> 0:20:39.640 I mean, we've we saw some optimism around at least 0:20:39.680 --> 0:20:44.080 the way bitcoin was trading. We've seen that be wiped away. 0:20:44.160 --> 0:20:46.560 We've seen a lot of volatility. You know, how should 0:20:46.600 --> 0:20:48.840 we make sense of cryptocurrency as an asset? How is 0:20:48.840 --> 0:20:53.040 Tequoia making sense of cryptocurrency as an asset. I think 0:20:53.040 --> 0:20:56.240 we're in this interesting moment where all of crypto gets 0:20:56.320 --> 0:21:00.880 painted by many investors with a broad brush, when as 0:21:01.280 --> 0:21:05.040 the world more comes to understand crypto will see that 0:21:05.560 --> 0:21:09.280 assets are quite different. And so the volatility that you 0:21:09.320 --> 0:21:11.480 see with bitcoin or what you're buying the bitcoin is 0:21:11.560 --> 0:21:13.800 very different than what you're buying with an application token 0:21:14.200 --> 0:21:16.680 or any other type of you know, crypto asset, whether 0:21:16.680 --> 0:21:19.600 it's an n f T, etcetera. And so I think 0:21:20.359 --> 0:21:23.359 there's you can certainly look at the volatility and you 0:21:23.400 --> 0:21:26.200 can say, you know, is bitcoin trading more like inequity? 0:21:26.240 --> 0:21:28.439 Is a trading more like a commodity? How should it trade? 0:21:28.720 --> 0:21:31.159 But the truth is that we're just very early in 0:21:31.200 --> 0:21:35.960 the world understanding bitcoin and broader cryptocurrencies, and I think 0:21:35.960 --> 0:21:38.960 the way those assets trade over time will change a lot. 0:21:40.240 --> 0:21:43.640 All Right, Michelle buy a partner at Sequoia Capital, Thank 0:21:43.680 --> 0:21:46.480 you fascinating. We'll be watching the move Sequoia makes in 0:21:46.520 --> 0:21:50.960 this space. Well, Stripe is announcing they're launching payment support 0:21:50.960 --> 0:21:55.000 for crypto businesses, including exchange whallet's and n f T marketplaces. 0:21:55.080 --> 0:21:57.560 They'll also be partnering with f t X and f 0:21:57.640 --> 0:22:02.240 t X c US to improve pipes know your customer protocols. 0:22:02.320 --> 0:22:04.880 We had a chat about crypto Astrike president John Collison 0:22:04.920 --> 0:22:06.800 a few months back. Take a listen to what he 0:22:06.800 --> 0:22:09.719 had to say. One thing we're really hung up on 0:22:09.960 --> 0:22:13.840 is of commerce today is cross border. That's it like. 0:22:14.000 --> 0:22:15.879 It feels like it should be much higher, especially on 0:22:15.920 --> 0:22:17.720 the Internet where it's so easy to have a cross 0:22:17.760 --> 0:22:22.360 border interactions, and so crypto is one very exciting, uh 0:22:22.680 --> 0:22:27.240 direction for for for trying to solve that. Coming up, 0:22:27.280 --> 0:22:29.320 we're going to talk about Web three, mixed reality and 0:22:29.359 --> 0:22:53.159 the metaverse. That is next. This is Bloomer. Welcome back 0:22:53.200 --> 0:22:55.480 to Bloomberg Technology and Emily Changing in San Francisco. Get 0:22:55.480 --> 0:22:58.400 ready for the launch of Magically to The company has 0:22:58.520 --> 0:23:03.560 raised million dollars and funding shifted its focus to enterprise customers. 0:23:03.600 --> 0:23:06.159 I want to talk more about that journey with Peggy Johnson, 0:23:06.200 --> 0:23:09.600 the CEO of Magically. Peggy, thank you so much for 0:23:09.720 --> 0:23:12.600 joining us. So we're looking at the latest iteration and 0:23:12.640 --> 0:23:16.320 improvements on mL one. What are some key changes you're 0:23:16.359 --> 0:23:20.480 making with the latest version of the technology. Thanks for 0:23:20.520 --> 0:23:23.480 having me back, Emily and um the latest version is 0:23:24.840 --> 0:23:28.520 focused on enterprise. In FACK, it's purpose built for enterprise 0:23:28.960 --> 0:23:33.159 and what we heard that folks in the areas of healthcare, 0:23:33.359 --> 0:23:37.560 defense and manufacturing needed we're a bigger field of use, 0:23:37.560 --> 0:23:39.920 so we've doubled that field of view. That's the area 0:23:40.000 --> 0:23:43.480 that you can place the digital content within. We've also 0:23:43.560 --> 0:23:47.080 improved the optics from one end to the other. There's 0:23:47.119 --> 0:23:52.800 the there's better text ledgeability, uh, the images crisper and clearer. Um. 0:23:52.960 --> 0:23:56.000 So we've we've done a lot to focus on the 0:23:56.000 --> 0:23:59.200 improvements that were needed to meet the specific use cases 0:23:59.280 --> 0:24:04.760 in those three areas. So what are the market opportunity here? 0:24:04.920 --> 0:24:08.480 Who do you see using this? Well? I d C 0:24:08.680 --> 0:24:11.280 says the market opportunity and enterprise a r S thirty 0:24:11.359 --> 0:24:16.520 nine billion dollars by but the real near term opportunity 0:24:16.560 --> 0:24:20.560 is in those three areas. So, for instance, in healthcare, 0:24:20.760 --> 0:24:23.199 we are making the device able to take into the 0:24:23.240 --> 0:24:27.320 operating room and doctors can now wear it during surgery 0:24:27.320 --> 0:24:29.640 because they can still see the patient in front of them, 0:24:29.680 --> 0:24:32.240 but they can hang a variety of screens around them 0:24:32.640 --> 0:24:37.600 to check the patient's vitals. We've also changed the orientation 0:24:37.640 --> 0:24:40.200 of the field of view to be more up and down, 0:24:40.280 --> 0:24:42.920