Speaker 1: Bloomberg Audio Studios, Podcasts, radio news. Bloomberg Tech is live
Speaker 1: from coast to coast with Caroline Hyde in New York
Speaker 1: and edlave Low in San Francisco.
Speaker 2: This is Bloomberg Tech coming up. Oracle surges on big
Speaker 2: cloud contract wins and an outlook that left some analysts
Speaker 2: in shock.
Speaker 3: Coming up.
Speaker 2: It's also a big day for Klara, which is getting
Speaker 2: ready to go public with an IPO priced above the
Speaker 2: marketing range. And we will discuss with the CEO.
Speaker 4: And we'll bring you conversations from the primary summit right
Speaker 4: here in New York, everything from AI, tech, sports, investing
Speaker 4: and more.
Speaker 2: Ed Okay, let's get to our top story. Oracle is
Speaker 2: having its biggest jump since nineteen ninety two the chart forward.
Speaker 2: This was a stock that was already up forty five
Speaker 2: percent year to date and now has massive performance in
Speaker 2: the year.
Speaker 3: They gave us an outlook.
Speaker 2: For cloud not just for this year, but told us
Speaker 2: what's going to happen through twenty thirty. Then look at
Speaker 2: the market cap nine hundred and sixty billion dollars almost
Speaker 2: one trillion dollars. They have leap frog JP Morgan and
Speaker 2: propelled themselves into the top ten companies on the S
Speaker 2: and P five hundred analyst notes everywhere this morning, some
Speaker 2: of them saying that they are in shock at the
Speaker 2: numbers that we got. That is the market reaction. What
Speaker 2: is it the market's reacting too. Let's get out to
Speaker 2: Bloomberg Intelligence senior software analysts and a lag Rana. There
Speaker 2: is the backlog right of business, the order book, it's
Speaker 2: like four hundred and fifty billion dollars. Then there's the
Speaker 2: outlook for cloud this year, and then there's the trajectory
Speaker 2: through to the end of the decade. Why is the
Speaker 2: stock reacting like this? And what was the data that
Speaker 2: you jumped on?
Speaker 5: Yeah, it is the order book basically because that audiobook
Speaker 5: is going to lead into revenue over the next several years,
Speaker 5: depending on how soon Oracle can get those data centers
Speaker 5: live and get those workloads in.
Speaker 2: When we talk about AI in the context of cloud,
Speaker 2: we've been talking about the hyperscalers, and then we've been
Speaker 2: talking about neo cloud renting GBHU capasitying in data centers
Speaker 2: specifically for AI.
Speaker 3: Where is Oracle now sitting in that field?
Speaker 5: Yeah, this is very much close to what Morviv is doing,
Speaker 5: basically renting out GPUs to customers to train their models
Speaker 5: to do inference workloads. It's the same kind of mindset,
Speaker 5: but the big difference is Oracle has a very high
Speaker 5: margin software and applications business that can fund some of this,
Speaker 5: you know, the expansion capacities, because the rest of the
Speaker 5: neoclouds don't have that. They have to go out and
Speaker 5: borrow that much money and at a much higher cost.
Speaker 2: This chart that we're looking at, let's keep it up
Speaker 2: for a second, guy, as if we can. It breaks
Speaker 2: down the outlook. It's almost like arr but they're basically
Speaker 2: saying that by the end of this decade there's going
Speaker 2: to be sick see billion dollars in upside based on
Speaker 2: what Oracle told us relative to consensus like what we
Speaker 2: saw happening. Anna Rag, you've built a deep coverage of
Speaker 2: this company as an analyst of Bloomberg Intelligence. Can you
Speaker 2: explain materially what has changed for Oracle, what it is
Speaker 2: they're actually doing in the real world that's driving the
Speaker 2: potential growth.
Speaker 5: I think the biggest thing is they are you know,
Speaker 5: they have their latest infrastructure right now. They were buying
Speaker 5: chips from Geo Nvidia. They are creating paymental computing for
Speaker 5: anybody to come out and host their application or if
Speaker 5: they want to train their large language model or small
Speaker 5: language model. You know, this capacity is up for rental,
Speaker 5: and then that's really the business Oracle is in. The
Speaker 5: big issue is right now there is a massive shortage
Speaker 5: of this kind of computing capacity, So everybody is trying
Speaker 5: to get as much computing capacity as they can, so
Speaker 5: they are rushing to you know, new clouds like Navieers
Speaker 5: or core Vive for Oracle, Amazon, everybody, and I think
Speaker 5: everybody to use the is beneficiary here, not just you know,
Speaker 5: one particular data center. It's just the only thing is
Speaker 5: Oracle's revenue base in cloud infrastructure was you know, roughly
Speaker 5: around ten billion a year ago or so in their
Speaker 5: last financial years, and then compared to let him, you know,
Speaker 5: Amazon one hundred and twenty five billion or Azure's seventy
Speaker 5: five billion.
Speaker 2: Just very quickly, Anna Rag, I've known Oracle as a
Speaker 2: databased software name, and there seems to be of a
Speaker 2: hard pivot. Is the hard pivot the right characterization?
Speaker 5: Yeah, but the hard pivot started, I'm going to be
Speaker 5: very honest twenty seventeen twenties. I mean, it's it's been
Speaker 5: going on for a while, but a lot of that
Speaker 5: was for their own database business, and you know, incomes
Speaker 5: AI and everybody is looking for computing capacity and they're
Speaker 5: there to you know, offer those services.
Speaker 2: Anarag stay with us because we have one other piece
Speaker 2: of news coming out of the Oracle story. After Oracle's
Speaker 2: results past expectations, it's co founder Larry Ellison has become
Speaker 2: the world's richest person for the first time, ending Elon
Speaker 2: masks nearly years long rain in the top spot. Elison's
Speaker 2: fortune sawed one hundred and one billion dollars as of
Speaker 2: about ten a m New York time, lifting his total
Speaker 2: fortune according to Bloomberg calculations and the Billionaires Index to
Speaker 2: three hundred and ninety three.
Speaker 3: Billion US dollars.
Speaker 2: Anna, Rag, you're staying with us because I want to
Speaker 2: get back to another story that's top of mind.
Speaker 3: Apple.
Speaker 2: Yesterday, I was in Kupertino at Apple Park. You wrote
Speaker 2: that iPhone sales could still get a high single digit
Speaker 2: lift with this iPhone seventeen generation, and like everyone, you
Speaker 2: are focused on pricing. Build out the rest of your
Speaker 2: thesis on that.
Speaker 5: Yeah, so when you look at consensus right now in
Speaker 5: unit shipments, it's only building in you know, one percent
Speaker 5: increase of unit shipments and let's say two to four
Speaker 5: percent increase in iPhone sales. We have a slightly different view.
Speaker 5: We think the newer model, even though everybody says it's
Speaker 5: not the best thing out there, but I think it's
Speaker 5: still going to generate excitement in emerging markets. It's still
Speaker 5: going to force people that have not upgraded. A new form.
Speaker 5: Factor is an act of novelty. It's a new thing
Speaker 5: for people to hold. So you know, giving a unit
Speaker 5: shipments of three to five percent is not a big deal.
Speaker 5: And then when you get a price up lift of that,
Speaker 5: that increases your average revenue per user, and that actually
Speaker 5: takes it up to the seven eight nine percent that
Speaker 5: we are talking about for the next financial year, which
Speaker 5: is f five twenty six.
Speaker 2: I do want to point out that the Decline's and
Speaker 2: Apple in this session of really accelerated with down almost
Speaker 2: three percent on a two day basis, down four and
Speaker 2: a half percent, biggest drop on a two day basis
Speaker 2: since May. But it's always a sell the news event.
Speaker 2: And then we'll look further afield on how the handset resonates.
Speaker 2: How big a factor are the carriers here in the
Speaker 2: United States in terms of the discounts.
Speaker 5: No, they are very big factors because though those discounts
Speaker 5: are the one that forces people to go out and
Speaker 5: you know, go out and get the new phone. Now,
Speaker 5: what we have seen over the last several years, this
Speaker 5: is you know, a trend for that we have observed
Speaker 5: for the last three four years. The refresh cycle is
Speaker 5: getting extended. There was a time pell the average life
Speaker 5: was roughly around four years or so. Now that's moving
Speaker 5: up a little where people are keeping it longer. But
Speaker 5: if you give them the incentive to go out and
Speaker 5: get a new phone, you know, you could accelerate that.
Speaker 5: And the other thing that can accelerate that refair cycle
Speaker 5: is if they launch any new AI features over the
Speaker 5: next six to twelve months.
Speaker 2: So here's the question, Ana, Rag, which phone do you
Speaker 2: go out and get. Everyone's focused on the air five
Speaker 2: point six milimeter thickness because it's a category in and
Speaker 2: of itself. Right Samsung has the Galaxy S twenty five Edge.
Speaker 2: People build this is the greatest hardware innovation from Apple
Speaker 2: on the iPhone in a long time. The technology matters,
Speaker 2: Does it matter to you and how you're modeling for it.
Speaker 5: Yeah, say, from our side, I think the Pro model
Speaker 5: gets sold in the US more than anything else. And
Speaker 5: that's the way you have an inherent price increase of
Speaker 5: one hundred dollars because the lower memory phone is not
Speaker 5: available anymore, you're going to have to pick the two
Speaker 5: hundred and fifty six, you know, gigabyte the phone which
Speaker 5: comes at one hundred dollars price increased. So that's the
Speaker 5: one where we think it would be most sold in
Speaker 5: the US where the benefits are the highest in terms
Speaker 5: of carriers.
Speaker 2: Anna rag Rana, who leads our research on both Oracle
Speaker 2: and Apple Bloomberg Intelligence, thank you very much.
Speaker 3: Now coming up, we're going to talk to.
Speaker 2: Klana CEO Sebastian shumir Kowski as the company prepares to
Speaker 2: go public today.
Speaker 3: Caro, what have you got later this hour?
Speaker 4: So much right here in New York City, Primary Summit
Speaker 4: is upon us. We've got founders, venture investors, but also
Speaker 4: sports people have become venture investors with us as well.
Speaker 4: We've got Larry Fitzgerald is going to be joining the
Speaker 4: conversation and his work alongside Vasu called Karnie, who's of
Speaker 4: course Courtside Venture's partner. Larry helps advise and thinks about strategy,
Speaker 4: whether it's about health AI, whether.
Speaker 3: That's the future of sports.
Speaker 4: Martine Mignon of Index Venture is also going to be
Speaker 4: with us. Really interesting day as we think about the
Speaker 4: IPOs in fintech. This is Bloomberg Tech.
Speaker 2: Shares of buy now, pay later firm Klana are set
Speaker 2: to begin trading today. The company, in some of its
Speaker 2: backers sold over thirty four million shares at forty dollars each,
Speaker 2: giving Klana a market value of about fifteen zero point
Speaker 2: one billion dollars.
Speaker 3: We're joined now by Klana.
Speaker 2: CEO, Sebastian, SHIMIIR and Koski Sebastian. First of all, congratulations
Speaker 2: to you, Caroline and I have quizzed you over the
Speaker 2: years on when an IPO happens, why it happens. I
Speaker 2: just want to bring you some news if I may,
Speaker 2: in the time that we've come on air. There's a
Speaker 2: headline on the Bloomberg terminal that the shares are indicated
Speaker 2: to open between fifty and fifty two dollars each. You
Speaker 2: price the IPO at forty. Just summarize your reaction to
Speaker 2: that and what it means to you on a daylight today.
Speaker 6: I'm happy, I didn't hear what you said on the
Speaker 6: price or a pretendin not to hear it, so I
Speaker 6: don't have to comment on it. We'll find out. Like
Speaker 6: I'm you know, I'm very I'm very much looking forward
Speaker 6: to welcome new shareholders to the company, and I think
Speaker 6: there's decades of growth and opportunity ahead of ourselves, So
Speaker 6: I feel very excited about this.
Speaker 2: Today we introd you as a buy now, pay later firm,
Speaker 2: but increasingly when you've come on this program, we've talked
Speaker 2: about Klana is an everything app. How does this IPO
Speaker 2: reposition you into that domain?
Speaker 6: Well, look, I think that was actually my biggest happy
Speaker 6: moments from the IPO.
Speaker 7: There were two from the road show. One.
Speaker 6: I got very few questions about buying oppu later and
Speaker 6: a lot about our card and how it's growing. We've
Speaker 6: signed up seven hundred thousand new Americans in the last
Speaker 6: six weeks to our card. We have five million people
Speaker 6: on the waiting list. But the best part of the
Speaker 6: road show, I tell you, was when we signed into
Speaker 6: one to the reception at one of our investors. The
Speaker 6: guy in the reception said, oh, you're from Clana. He's like, yes,
Speaker 6: do you use it?
Speaker 7: I love it.
Speaker 6: I use it all the time and I was like, oh,
Speaker 6: but what can we do better? He's like, nothing, just
Speaker 6: get me the card. So that was the best moment
Speaker 6: from the whole road.
Speaker 3: Show, Sebastia.
Speaker 4: It's like a man getting event. When one goes public,
Speaker 4: you get your name in other people's mindset. Here in
Speaker 4: the United States, will you go for a banking license?
Speaker 4: Talk us through where the growth story is going forward?
Speaker 7: Sure?
Speaker 6: No, Look there, we have a bank license in Europe,
Speaker 6: as you're well aware of. We've had it for ten years.
Speaker 6: It's fantastic, gives us access to deposits. It's a very
Speaker 6: effective way of funding our banags sheet allows us actually
Speaker 6: to do it more cheaply than our competitors. But I
Speaker 6: think the key thing is in the US there's this
Speaker 6: group McKinsey showed us in a study already ten years ago.
Speaker 6: They're called self aware of voids. These are people who've
Speaker 6: tried the credit card. It actually makes slightly more than
Speaker 6: your low income household and medium houses in household income.
Speaker 6: They are they try the card, they tried revolving. They
Speaker 6: say it's it's the product of the devil. They don't
Speaker 6: want to get in four thousand dollars of credit card
Speaker 6: debt with you know, twenty thirty percent interest. They love
Speaker 6: by an appulator, and they love our card.
Speaker 8: They love the.
Speaker 6: Opportunity to put most things on debit and then occasionally
Speaker 6: put it on interest free installments.
Speaker 3: Very cost effective.
Speaker 6: So that's the target audience, twenty percent of the American households.
Speaker 6: And you know, now we have twenty six million users
Speaker 6: in the US, so we're seeing a lot of pickup.
Speaker 4: Seeing pickup, You're seeing pickup in your shares. You are
Speaker 4: significantly oversubscribed, as we told you, and you chose not
Speaker 4: to hear that. You're currently seeing shares being indicated much
Speaker 4: higher than even at they priced at.
Speaker 9: Did you sell too low?
Speaker 4: I know you're a man that's had to stomach variations
Speaker 4: in your market capitalization in history. What does it mean
Speaker 4: to you to have a valuation out there in public?
Speaker 4: More broadly every day cool?
Speaker 6: Look to be honest personally, I'm not selling a single
Speaker 6: share in this IPO. I am, you know, a long
Speaker 6: term shareholder. I love this company, been doing this for
Speaker 6: two decades. It's a long period of time. But fortunately
Speaker 6: I was twenty three when we started, so I'm not
Speaker 6: that all yet and I hope to continue for a
Speaker 6: few decades. And if you're truly going to disrupt retail
Speaker 6: banking and you know, and change this industry that has
Speaker 6: you know, a mass so much excess profit because of
Speaker 6: the lack of competition, the lack of customer focus, and
Speaker 6: you want to bring that back and you want to
Speaker 6: create a better service for customers. That's going to take
Speaker 6: some time, though, This is not something you do overnight,
Speaker 6: and I just look forward to doing that, and then
Speaker 6: investors will occasionally lean more into the future and occasionally
Speaker 6: lean more into profit today and so forth, and that
Speaker 6: will vary, and you know, it's up to everyone to
Speaker 6: take that decision for themselves.
Speaker 3: Sebastily.
Speaker 2: The mechanism in this IPO is really important because you
Speaker 2: didn't raise like a huge amounts of money, and on
Speaker 2: this program recently we've done all the reporting on some
Speaker 2: of your peers, like Revolute doing transactions to stay private deliberately.
Speaker 2: So you faced a choice and you chose to go public.
Speaker 2: What was the main motivation?
Speaker 6: I think, you know, again, to your point, we only
Speaker 6: raised two hundred million dollars right in this IPO because
Speaker 6: the company is you know, self sustainable from a capital
Speaker 6: perspective doing really well, so there's no real need. I
Speaker 6: think that the key thing is we've had twenty years
Speaker 6: of private investors, employees bought into the Star, and over
Speaker 6: time it became quite an effort to keep track of
Speaker 6: private transaction in Google sheets, right, So now it's a
Speaker 6: little bit more efficient to trade the stock on the market.
Speaker 6: Gives people who's been with us for many decades the
Speaker 6: ability to get some liquid out, but most people are
Speaker 6: not selling much. And at the same point of time,
Speaker 6: fantastic to welcome new shareholders to the cap table who
Speaker 6: want to join what we're trying to revolutionize in retail banking.
Speaker 7: So I'm super excited about.
Speaker 2: Which you kind of illustrate outline what the competitive landscape
Speaker 2: looks like to you, who your competitors are, and also
Speaker 2: the regulatory headwinds that you're bracing.
Speaker 6: For sure, I mean, people will always mention a firm revolute,
Speaker 6: and we are very impressed by those companies, very inspired
Speaker 6: by them. But the truth is credit card industry is
Speaker 6: one point three trillion dollar revenue market. So I would
Speaker 6: say it's mostly the incumbents, the old banks that are
Speaker 6: you know, the opportunity and where the competition is and
Speaker 6: where we can grab tons of market share. And the
Speaker 6: problem for them is, you know, if you have a
Speaker 6: credit card program that's running at thirty percent interest and
Speaker 6: you're revolving people at four thousand dollars, and you look
Speaker 6: at Klona's payment model where our average outstanding balance is
Speaker 6: one hundred dollars and zero percent interest, you're not too keen.
Speaker 6: You don't want to jump into that. You don't want
Speaker 6: to lose all the profit you're making. But for us,
Speaker 6: it's just opportunity. It does upside, you know, grab more
Speaker 6: market share, become larger. It works well for us. We
Speaker 6: make money out of that, you know. So it's that's
Speaker 6: what we see as the primary competition on the regulatory side. Look,
Speaker 6: I think at the core of it, if ten years
Speaker 6: from now, less people use credit cards and more people
Speaker 6: use debit cards and occasionally buy an appay later, that's
Speaker 6: a better that's a better society. And as we get
Speaker 6: the chance to sit down and take all the noise
Speaker 6: away from media and so for it to actually explain
Speaker 6: and show our losses are thirty percent lower than credit cards,
Speaker 6: our consumers are borrowing much less.
Speaker 7: You know.
Speaker 6: I had this conversation to add a conversation with a customer.
Speaker 6: She was like, yeah, my mom called me and she
Speaker 6: was like, are you using this interesting called binacty lad
Speaker 6: with Klana And she told her moms like, Mom, you
Speaker 6: have a credit card?
Speaker 9: Right?
Speaker 7: Yeah?
Speaker 6: How much dep do you have? Four thousand dollars? What's
Speaker 6: your interest? Thirty percent? Which is like, Mom, I'm borrowing
Speaker 6: one hundred dollars a zero percent interest? Who is financially responsible?
Speaker 6: And you get those that message across, then you realize
Speaker 6: that regulators actually start embracing and seeing value in that
Speaker 6: we're bringing competition to a market that has, you know,
Speaker 6: extracted excess profit out of customers by tactics that are
Speaker 6: not in the customer's best interest.
Speaker 4: Thank you, and your tactic in many ways has been
Speaker 4: to embrace efficiency, adopting generator of AI in the workforce,
Speaker 4: in particular within the product. How much more can you
Speaker 4: focus in on margins? How much more are you going
Speaker 4: to have to keep hiring to scale and to sell?
Speaker 6: Well, the truth is right, we haven't hired people for
Speaker 6: two years. We've shranked the company from seven thousand to
Speaker 6: three thousand, four hundred to three thousand people, which is fantastic,
Speaker 6: but I would say we probably over index a libit
Speaker 6: on efficiency, and now the last six nine months we've
Speaker 6: taken much more focus on how do we take all
Speaker 6: the learnings We've used ourselves as employees as guinea pigs
Speaker 6: for all these AI software, all these tools, we took out,
Speaker 6: all the SaaS software to salesforce and all that, and
Speaker 6: now what we want to do. We want to bring
Speaker 6: that to our customers. We want to bring that to
Speaker 6: the immersions. We're very excited in the coming weeks and
Speaker 6: months to launch AI powered customer retail banking apps that
Speaker 6: we believe are going to be tremendously more valuable and
Speaker 6: create more values, save time, save money for our customers
Speaker 6: and make them feel and control of their finances. So
Speaker 6: it's very exciting to use AI now to create the
Speaker 6: next generation of financial services.
Speaker 2: So Sebasti, you're a public company now, so you have
Speaker 2: coarsely earnings. But I want to end by asking what
Speaker 2: the metric is that you will gauge plan as success
Speaker 2: by what is the kind of milestone that you are
Speaker 2: holding your company to from this point?
Speaker 3: Well, it's very easy.
Speaker 6: You mentioned already resolute in the firm clan has focused
Speaker 6: in the last few years has been let's get as
Speaker 6: many users as possible. It's a litt bit like Facebook, right,
Speaker 6: you want to get as many users as possible. We're
Speaker 6: now at one hundred eleven million. That means, you know,
Speaker 6: a firm I think is less than thirty revoluted fifty.
Speaker 6: We're one hundred eleven million users. But our revenue for
Speaker 6: customer is not like as much as there and that
Speaker 6: is it. You know, revenue for customer is the one
Speaker 6: metric now because we know that when we start launching
Speaker 6: things like the card, we see massive pickup from our audience.
Speaker 6: So now obviously we want to reach similar revenue for customers.
Speaker 6: We're seeing our main competitors and that has the potential
Speaker 6: of bringing us from a revenue size company as well
Speaker 6: to a different level. So that is the key metric
Speaker 6: right now, revenue for customer.
Speaker 4: It's beast In Shimirnkowski Klan, a CEO the Blockbuster Hat.
Speaker 4: I hope that bodes about the IPO rather than the
Speaker 4: future business model. We so appreciate you being here with
Speaker 4: us today live from the New York Stock Exchange. Now
Speaker 4: we are here in New York City, the other part
Speaker 4: of town at Primary Summit Now this is all about
Speaker 4: the future of investing, the startups that you want to
Speaker 4: be in more broadly, and the way in which we're
Speaker 4: seeing investors take shape in the world of sports, in
Speaker 4: the world of AI, in the world of consumer health
Speaker 4: as well. So I just want to be digging deep
Speaker 4: into our next set of guests who are joining us
Speaker 4: today on the back of really the future of AI
Speaker 4: and sports with Vassal Kolkhaney. Now he himself a founder
Speaker 4: but then became a venture capitalists with Courtside Ventures. Belaria
Speaker 4: Fitzgerald as well, an NFL veteran now turned advisor and
Speaker 4: investor alongside Courtside Ventures. Gentlemen, it's wonderful, wonderful to be
Speaker 4: here with both of you and.
Speaker 3: Fus Do I start with you?
Speaker 4: You wance a founder, you're now an investor. What does
Speaker 4: the future of sports investing look like to you? Because
Speaker 4: when I look at your portfolio, there's a myriad of
Speaker 4: health tech, there's about collectibles, it's about fandom, but it's
Speaker 4: also about new types of sports and keeping them shorter
Speaker 4: and quicker.
Speaker 8: Yep, I think you hit it perfectly.
Speaker 10: Everyone who talks about sports today thinks about teams and leagues,
Speaker 10: but sports is so much larger than just that. Most
Speaker 10: people sports teams as a trophy asset. But then if
Speaker 10: you look at what they're doing today, they're developing the
Speaker 10: real estate around the stadium and creating many, many large
Speaker 10: business opportunities.
Speaker 3: For us.
Speaker 10: On the venture side, it's always been about the fact
Speaker 10: that there's media opportunities, there's.
Speaker 8: The world of collectibles.
Speaker 10: We just saw Babe Ruth Jersey sell last year for
Speaker 10: thirty two million dollars.
Speaker 8: That's a real asset class.
Speaker 10: Now we see the world of fitness and wellness and longevity.
Speaker 10: That's the name of the game this year is how
Speaker 10: are you going to live to be one hundred years old?
Speaker 10: To me, all of that is sports. It's not just
Speaker 10: what happens on the field. It's so much of what
Speaker 10: happens off the field as well, and those are the
Speaker 10: things that we've been investing in for the last ten
Speaker 10: years now.
Speaker 4: Larry, you're a testament to that on the field, known
Speaker 4: as one of the best receivers of all the time.
Speaker 4: But we think about what you do off the field,
Speaker 4: whether it's philanthromic, but it's about backing new ventures. Where
Speaker 4: is your sweet spot at the moment, where have you
Speaker 4: thought that the world of sport has changed, and where
Speaker 4: you didn't really foresee that you've made money out what.
Speaker 3: It is a lot of different verticals.
Speaker 11: Like you take, for instance, flag football, it's coming to
Speaker 11: it's going to be an Olympic sport in twenty twenty eight.
Speaker 11: How is it that we can get young ladies to
Speaker 11: be able to participate in the game that they love.
Speaker 11: You know, fifty percent of our fans are women, and
Speaker 11: they're not able to participate. They're not able to put
Speaker 11: helmets and shoulder pads on like the boys are. But
Speaker 11: how can we give them that avenue to be able
Speaker 11: to continue to follow their passions They watch with their
Speaker 11: brothers and their fathers and others in their schools and
Speaker 11: support their.
Speaker 7: Fantasy football team.
Speaker 11: So I look at emerging sports like I still think
Speaker 11: women's sports is the most undervalued asset class in sports.
Speaker 11: And you see what unrivaled best Mondice lead their recent
Speaker 11: round and like, I just think that that that expansion
Speaker 11: and opportunities is endless.
Speaker 4: Flag football is taking my world upstate by storm.
Speaker 9: Tell you what also is pickaball?
Speaker 3: I know you're backing that.
Speaker 4: I know cricket is an area they're almost like the
Speaker 4: charge and making things more consumable, more pacy. Is there
Speaker 4: a side effect of making everything for those that have
Speaker 4: a lack of attention span nowadays?
Speaker 3: I don't think so.
Speaker 7: I think you have your peers.
Speaker 11: You know, my dad, he sits down and watches the
Speaker 11: game on network TV like everybody else. But my sons
Speaker 11: they have no interest in watching an entire football game.
Speaker 7: Want to watch red zone. They want to see the snipbits.
Speaker 11: They want to see justin Jefferson's touchdown catches, Chase Jamar
Speaker 11: Chase's touchdowns. They want to see it quick and easy,
Speaker 11: and they want to see what they're doing on their
Speaker 11: fantasy teams. That's how they consume it, you know, and
Speaker 11: so we have to be able to give it to
Speaker 11: them in by size pieces, like the way they want
Speaker 11: to consume it.
Speaker 3: We can't do everything the way my dad wanted to do.
Speaker 11: If this is the younger consumers watching it in a
Speaker 11: different way, and.
Speaker 4: This is where your expertise vasu on content and media
Speaker 4: consumption comes in. Where are you seeing the innovation coming from?
Speaker 4: What kind of founders it coming into the game. I mean,
Speaker 4: Alex Rodriguez is someone that you've backed. Of course, a
Speaker 4: rod is someone that we know well on our network.
Speaker 4: He has backed future of Media. But where are some
Speaker 4: of the more innovations coming in?
Speaker 10: When it comes in, you're seeing sort of a lot
Speaker 10: of new emerging leagues come in with new types of content.
Speaker 10: So we just backed a company called Baller League that's
Speaker 10: based out of Germany, which is now six on six football.
Speaker 10: You can't kick the ball backwards behind midfield, so it
Speaker 10: creates action.
Speaker 3: It's two fifty football.
Speaker 10: We're talking your football, not our type of football. That's
Speaker 10: exactly right, and two fifteen minute halfs. So it's basically
Speaker 10: made or content to be consumed on a cell phone.
Speaker 10: And oh, by the way, every one of the teams
Speaker 10: in that league is operated by a streamer or a
Speaker 10: content creator that has probably more than thirty to forty
Speaker 10: million followers on Instagram or Twitter or TikTok, so on
Speaker 10: day one you're talking about an audience that's already there. Historically,
Speaker 10: the NBA, the NFL, it took them several decades to
Speaker 10: get to the point where they could go get a
Speaker 10: media rights deal, start to get the sponsorship revenue in
Speaker 10: and become a real business. These leagues are able to
Speaker 10: do it overnight. In the first year, they can generate
Speaker 10: tens of millions of dollars in revenue because they can
Speaker 10: now go straight and free to stream on Twitter or YouTube,
Speaker 10: so they don't have to wait for the ESPNS or
Speaker 10: the Sky Sports to show up and give them a deal.
Speaker 10: They're they've already got the audience, which means the sponsors
Speaker 10: are now coming instantly.
Speaker 8: And those are the types of business that we find
Speaker 8: really interesting.
Speaker 4: I mean, that's there the self proclaimed biggest fastball fan
Speaker 4: there is, Hence courtside.
Speaker 3: An average player to.
Speaker 4: Average Sometimes those things go hand thet I'm interested about
Speaker 4: how you think fandom fits in to all of this,
Speaker 4: and how ultimately we still want to spend on the
Speaker 4: things that we love. How you thinking about collectibles, the
Speaker 4: way which that pivots to a digital side.
Speaker 10: Yes, I don't want to say we're the anti AI fund,
Speaker 10: because we do invest in AI companies. But when I
Speaker 10: think about one hundred years from now, and AI has
Speaker 10: eaten just about every industry in the world, I hope
Speaker 10: that we still want to watch humans play sports and
Speaker 10: not robots, right, And if that is true, then I
Speaker 10: think everything that we're investing in here today will still
Speaker 10: be around hopefull one hundred years m right. It may
Speaker 10: look slightly different, but it'll still be here. And when
Speaker 10: you talk about the world of collectibles, you think back
Speaker 10: to mankind as a hunter and gatherer. I think from
Speaker 10: the earliest cavemen, we've had this innate desire to hunt
Speaker 10: and gather. Back then it was for food. Today we
Speaker 10: don't have to hunt for our own food, but we
Speaker 10: still have that desire to hunt for things. And to me,
Speaker 10: those are the world that's the world of collectibles. And
Speaker 10: so whether it's watches, handbags, sports memorabilia, trading cards, Pokemon cards,
Speaker 10: this is a six hundred billion dollar industry that is
Speaker 10: just starting to see the light of technology. It was
Speaker 10: sort of eBay for the first twenty years of the Internet,
Speaker 10: and now you're going to see a whole host of
Speaker 10: new companies that are going to create better buyer and
Speaker 10: seller experiences for all of us who want to collect things.
Speaker 4: Larry, I'm sure in many ways the deals hunt you,
Speaker 4: and people come to you with their innovations and their
Speaker 4: ideas in the world of sports and media and content,
Speaker 4: But what have you looked to hunt out? Where have
Speaker 4: you found that Having been an athlete, your edge can
Speaker 4: lead to Courtside's Alpha.
Speaker 11: Well, I think it's really important you have an inside
Speaker 11: look at what sports looks like and also like what
Speaker 11: people are talking about, what they're interested in, you know.
Speaker 7: So I look at a company.
Speaker 11: Like you Know Tomorrow Sports, who is essentially stood up
Speaker 11: a business that took you know, your grandfather's game and
Speaker 11: made it something that young people will want to watch
Speaker 11: in an indoor stadium environment, right and expanding that you
Speaker 11: know now to the West coast. And you think about
Speaker 11: innovation of games that were maybe older games and finding
Speaker 11: new innovative ways to be able to make experiential. And
Speaker 11: I think people, no matter how much AI and technology evolves,
Speaker 11: like there's a communal aspect to what we liked in sports.
Speaker 11: Like you sit next to a guy at a Giant's
Speaker 11: game and your favorite player scores.
Speaker 7: A touchdown and you high five them.
Speaker 11: You have no idea who they are or where you're from,
Speaker 11: but you're sharing this moment together. And I think the
Speaker 11: more that you can create that, the stronger the sports
Speaker 11: experience will be.
Speaker 4: What's interesting is there's a very global nature to the portfolio,
Speaker 4: and I'm fascinated that you're backing cricket, but you're also
Speaker 4: thinking about, well, the way in which very American, uniquely
Speaker 4: American sports, your own sport football become a global in nature,
Speaker 4: basketball is doing that. How are you seeing when we're
Speaker 4: seeing a world that is almost anti globalization from an
Speaker 4: economic perspective right now becoming more globalized when it comes
Speaker 4: to fandom and when it comes to sports, Well.
Speaker 11: I think sports is really unique because it transcends race,
Speaker 11: it transcends religion, Like it's the one thing that you
Speaker 11: can do and now have to talk about politics, so
Speaker 11: worry about those type of things. And so like when
Speaker 11: I went to India years ago, when I saw I
Speaker 11: was I was at an event with Misatchen, one of
Speaker 11: the best cricket players in the world, and I saw
Speaker 11: he had a ten team security detail, police.
Speaker 7: Officers, and people would literally.
Speaker 11: They weren't asking for autographs, they were literally just trying
Speaker 11: to touch his shirt, right, And so I was like, Wow,
Speaker 11: he's almost a deity. You know, I've been around a
Speaker 11: lot of high profile athletes. I've never seen anybody respond the.
Speaker 3: Way he did.
Speaker 11: Then I saw the IPO at the time and only
Speaker 11: had eight teams in the league, and I look at India,
Speaker 11: it has over forty different cities that have over a
Speaker 11: million people in population that absolutely love the game. And
Speaker 11: you look here the Green Bay Packers, the Pittsburgh Steelers,
Speaker 11: and Memphis Grizzlies. These are all cities that are nowhere near
Speaker 11: five hundred thousand people, six hundred thousand people, and they
Speaker 11: still support these franchises in a massive way. To think
Speaker 11: about the expansion of what could happen in the global
Speaker 11: sport that's followed around the world, and so it's really
Speaker 11: intriguing for me to invest in that well, to be
Speaker 11: able to.
Speaker 4: Keep on investing doing your philanthropic work as well as
Speaker 4: being a key well your deity here for many many
Speaker 4: things of the game. And Vasu so appreciate your time
Speaker 4: here thinking about the world in which we create valuation
Speaker 4: and then maybe not to pro or all in on
Speaker 4: ai way. We thank you Vessel kakhanne Loi Fitzgerald from
Speaker 4: Courtside Ventures and taking it back to you in San Francisco.
Speaker 2: Awesome interview in the private sector Space Venture Space Sports.
Speaker 3: Absolutely love that coverage.
Speaker 2: Let's go back to some of the technology sector movers
Speaker 2: in the public markets right. First of all, Oracle, we're
Speaker 2: now at forty two percent This is the biggest jump
Speaker 2: on Oracle shares since nineteen ninety two. It propels that
Speaker 2: name into the top ten biggest companies on the S
Speaker 2: and P five hundred. It makes Larry Ellison the world's
Speaker 2: richest person. And it's all about an outlook not just
Speaker 2: for this fiscal year on cloud, but all the way
Speaker 2: through the twenty thirty. And there are a number of analysts
Speaker 2: out there saying we are in shock at these numbers.
Speaker 2: To the downside, a very different story. This is Synopsis,
Speaker 2: a company that makes software for chip design. The stocks
Speaker 2: down thirty five percent, biggest drop in history. Why because
Speaker 2: they're getting hit by export restrictions from the United States
Speaker 2: to China.
Speaker 3: And what they've tried to.
Speaker 2: Do is like work very hard on their own intellectual property,
Speaker 2: but that export of American technologies to China being controlled
Speaker 2: or banned, that is materially and directly hit sales. And
Speaker 2: that's the story of that name. Will continue to track
Speaker 2: it elsewhere in technology news. Jobi shares surging as he
Speaker 2: expands its partnership with Uber. As early as next year,
Speaker 2: customers will be able to book Jobey's helicopter and seaplane
Speaker 2: services within the Uber app. I want to get to
Speaker 2: Bloomberg's Natalie Lung, who's here in San Francisco. You and
Speaker 2: I talk about Uber Joby some of the rover taxi
Speaker 2: names all the time.
Speaker 3: Most people would.
Speaker 2: Know Jobi as an ev toll or flying air taxi company.
Speaker 2: But in the near term you need to be really
Speaker 2: specific about this deal with Uber and what the offering
Speaker 2: will be to the consumer.
Speaker 12: And so it really speaks to the opportunity that Jobey
Speaker 12: have here. In the future, people would be able to
Speaker 12: download the Uber app and hail Blade helicopters on their app.
Speaker 12: Right now, it's available in New York in part of
Speaker 12: southern Europe, and so it will be available to the
Speaker 12: millions of people who already have the Uber app on
Speaker 12: their phone.
Speaker 2: Another story you and I've tracked together is what's happening
Speaker 2: in Atlanta in the robotaxi race. The news is Lift
Speaker 2: and Main Mobility a partnership and some rides in that
Speaker 2: market are not really true robotaxi rides.
Speaker 12: Yes, So Lift is finally launching their av cars with
Speaker 12: Mame Mobility in Atlanta today and there will be a
Speaker 12: safety operator at the beginning as they sort of acclimate
Speaker 12: customers to drivelers rides and sort of take over whenever needed,
Speaker 12: and it will also have limited operating hours.
Speaker 3: At the beginning, lift shares up almost three percent.
Speaker 2: Direct correlation with the news We don't necessarily know, but
Speaker 2: plumos Nati lung trific reporting really worth tracking what she's
Speaker 2: looking at in the mobility space. Sticking with the world
Speaker 2: of autonomous vehicles, today, Zeus is officially launching its service
Speaker 2: on and around the Las Vegas Strip. It marks a
Speaker 2: first in the United States for a purpose built robotaxi
Speaker 2: that has no driver controls giving rides to member of
Speaker 2: the public. Members of the public, Zook CEO Ija Evans
Speaker 2: joins us now from Las Vegas. Okay, finally it's happened,
Speaker 2: and I give our audience the context that you and
Speaker 2: I have been talking about this for a very long time.
Speaker 2: There's limits to the service at first, Isha, so to
Speaker 2: start explain the parameters of what you're doing today and
Speaker 2: how you expand it.
Speaker 9: Thank you, good morning, and thank you again for having me.
Speaker 9: I actually had a bet that finally was going to
Speaker 9: be the first thing out of your mouth. So look, well, yes,
Speaker 9: we finally launched it essentially to the public, which is
Speaker 9: really nice. There's an app. Please download it if you're
Speaker 9: in Vegas. And also, by the way, if you're in
Speaker 9: San Francisco, it's coming soon, so you'll get on the
Speaker 9: wait list there. But let's get back to Vegas. Essentially,
Speaker 9: we're starting with five locations Resort World, New York, New
Speaker 9: York Area, fifteen, Luxore, and Top Golf, and you can
Speaker 9: go from one to any of those locations and then
Speaker 9: eleven am to one am. And yeah, you basically call
Speaker 9: it and it comes and gets you and takes you
Speaker 9: to your location, and you enjoy the experience, and we
Speaker 9: hope you do it over and over again, and you
Speaker 9: also tell us about it so that we can keep learning.
Speaker 9: It's free of charge. By the way, for now, two yes.
Speaker 2: I shall a question actually comes from our audience. Is
Speaker 2: a point of clarification. Does the rider in the first
Speaker 2: instance have a choice in the locations that they go to?
Speaker 2: In other ways, they can say through the app, I
Speaker 2: want to go from point A to point B, or
Speaker 2: do you have to follow a predetermined route?
Speaker 9: Nope, you have a choice. You pick your location and
Speaker 9: we will pick the best route at the time to
Speaker 9: get you there. You might go to the same look
Speaker 9: between two locations several times and go a slightly different
Speaker 9: way because we'll adjust depending on what's going on around
Speaker 9: the strip. So you pick your location and we take
Speaker 9: you there.
Speaker 2: The technology difference with zeokes is that it is a
Speaker 2: vehicle that has no steering wheel and no pedals. It
Speaker 2: has four inward facing seats. But you have been slower
Speaker 2: to deploy to the public than other robotaxi companies that
Speaker 2: use retrofitted consumer vehicles that do have driver controls. Was
Speaker 2: it worth it giving up first mover advantage to go
Speaker 2: down the regulatory path and the relationship path that you
Speaker 2: have with various cities.
Speaker 9: Oh, it was definitely worth it. First of all, I mean,
Speaker 9: I think we've been deliberate is how I like to
Speaker 9: call it, and very measured. This is the beginning of
Speaker 9: a massive way that will be a big market and
Speaker 9: that will frankly change how people move around cities and beyond.
Speaker 9: And so it was definitely worth it because the experience
Speaker 9: is magical. Because we've done it right, We've gone to
Speaker 9: the final solution from the beginning, We've learned a lot
Speaker 9: along the way. We've thought about serviceability, we've been right obsessed,
Speaker 9: We've thought about the business and operations at scale, and
Speaker 9: so we are absolutely thrilled with the bas we've chosen.
Speaker 9: I was start very young, at a young age.
Speaker 8: Do it right.
Speaker 9: The first time.
Speaker 2: I've been on the Las Vegas Strip in the Zookes vehicle,
Speaker 2: actually more than once, you know, the experience is more
Speaker 2: akin to getting into an airport shuttle with respect. You
Speaker 2: don't feel like you're in a consumer car. You opened
Speaker 2: up the availability today. Is there a sort of weight
Speaker 2: list arrangement in Las Vegas? Was the demand so great
Speaker 2: that you have a backlog of people to on board
Speaker 2: or what has the response been.
Speaker 9: The response has been awesome. As you know, we've been
Speaker 9: carrying members of the public, but on fixed route, just
Speaker 9: to get out bearings and get everything ready, and I've
Speaker 9: frankly I undercall the demand. So I think I need
Speaker 9: to get out of the demand forecasting business as far
Speaker 9: as Las Vegas from today onward, there's no weightlist. You
Speaker 9: essentially sign up and you're right. And I'm a little
Speaker 9: nervous today because I'm like, oh my gosh, I hope
Speaker 9: it's not too many people, because obviously we want to
Speaker 9: want to provide a great experience, but it's going to
Speaker 9: be wonderful. We are we are We're just thrilled to
Speaker 9: bring this to people. As you know, we've been at
Speaker 9: this for over a decade. We've been measured, we've had
Speaker 9: a very consistent vision. We you know, if it had
Speaker 9: to be resilient, and we we are excited to share
Speaker 9: this with others.
Speaker 2: What is the strategy to start charging fares first in
Speaker 2: Las Vegas and then later in San Francisco.
Speaker 9: So what you can expect is, first of all, everything
Speaker 9: is always pending regulatory approval. But what you can expect
Speaker 9: in Vegas is that we will be adding more and
Speaker 9: more locations. Uh. You know, this is the entertainment capital
Speaker 9: of the world, so we have a pretty good idea
Speaker 9: of where people like to go and why, and more robots,
Speaker 9: more destinations. Will also be upgrading the customer experience along
Speaker 9: the world. And after regulatory approval, and the end is
Speaker 9: very important, after we've also had all of the learnings
Speaker 9: that we're seeking, so that we have really a delightful, consistent,
Speaker 9: magical experience, we'll start collecting fairs.
Speaker 3: Zooks, Ceo, Ei share Evans, thank you very much.
Speaker 2: AI coding startup replet has raised two hundred and fifty
Speaker 2: million dollars in a new funding round that nearly triples
Speaker 2: its valuation to three billion dollars. Prison Capitals leading the
Speaker 2: financing round, which includes investors such as American Express Ventures
Speaker 2: and Google's AI Futures Fund, with existing backers including Andrews
Speaker 2: and Horowitz and y Combinator to sign a strong investor
Speaker 2: demand for companies using AI for software development.
Speaker 4: Right, Cara, Right, let's creek talking about the haves that
Speaker 4: have nots. Who's got the money, who's got the checks?
Speaker 4: Whether it's all about AI? Town Minos with US partner
Speaker 4: and Index Ventures helped found its New York City presence
Speaker 4: here back in twenty twenty two. Who now sits with
Speaker 4: me at Primary Submit Summit right here in the city Marta.
Speaker 4: We see the extraordinary valuations of general to AI enabling companies.
Speaker 4: Is that really where the activity still is?
Speaker 3: Is there room and oxygen in.
Speaker 4: The room for others?
Speaker 13: I think that's where the majority of the activity is.
Speaker 13: We see about two thirds of our deals or in
Speaker 13: the GENI space. But there's also other big areas that
Speaker 13: are still very active. You know, we still do a
Speaker 13: lot in healthcare, there's a lot in fintech.
Speaker 7: So it's not all GENI.
Speaker 13: The other thing is that JENI is becoming everything you
Speaker 13: know there, you know, you're talking about healthcare, while a
Speaker 13: lot of the activity in health care is GENI related,
Speaker 13: you know, optimizing back office, improving patient interactions. So I
Speaker 13: think this distinction is going to become obsolete very very soon.
Speaker 4: Well, we just had Sebastian of Klana as the company
Speaker 4: goes public, he very clear adopter of general to AI
Speaker 4: within his fintech business. It's a European star that's listed
Speaker 4: in America. You have a European UK based star and Revolute.
Speaker 4: How hot is the fintech space going to be after
Speaker 4: this successful accident?
Speaker 13: Looks like at this Yeah, first of all, congrats to
Speaker 13: Kloanna and what looks to be a very success successful IPO.
Speaker 13: I think it's a fantastic precedent for European companies. Fifteen
Speaker 13: billion plus. It's an amazing, amazing outcome for a great
Speaker 13: and very unique business.
Speaker 7: I think it shows that you.
Speaker 13: Can build giant technological companies from Europe, which you know
Speaker 13: there are some doughters out there, but I think you know,
Speaker 13: with Spotify and Adi and Klana and then in the future,
Speaker 13: the lacks of Revolute, this is coming, you know, again,
Speaker 13: again and again. I think the reality with fintech is
Speaker 13: that there were a lot of doughters, you know, saying, well,
Speaker 13: you know, how they're going to replace banks, how they're
Speaker 13: going to compete effectively at the cost of capital is.
Speaker 7: Higher, and so on and so forth.
Speaker 13: And I think what you're seeing is a lot of
Speaker 13: incredible businesses being created that are increasingly taking market share
Speaker 13: and customers by being way more customer friendly, adopting new tools,
Speaker 13: offering new products way faster, and clanizing with the example
Speaker 13: of that, and revelut is a full an even better
Speaker 13: example of that.
Speaker 4: I mean, you are all in on the EU and
Speaker 4: European success stories, but you and I are both European
Speaker 4: transplants moving here to America. Is the reality that the
Speaker 4: liquidity is here. When companies eventually do to go public,
Speaker 4: they're going to want to come to the US capital markets.
Speaker 13: I think in general the US capital markets or deeper
Speaker 13: there's more capital, there's more analysts, there's more knowledge. So
Speaker 13: there's clearly a geographical network effect that is happening is
Speaker 13: getting stronger. With every ip O, the pool gets stronger
Speaker 13: and stronger. So I think there is this is the
Speaker 13: primary market. This is the most of the markets for
Speaker 13: most competitions only European. The same for look at New
Speaker 13: Bank and other fintech Darling listed in New York as well,
Speaker 13: although only present in mostly in Brazilian and Latin America,
Speaker 13: so it's not European only phenomenon. What I would say
Speaker 13: is if I were a European markets I would try
Speaker 13: to be way more competitive. It's not only about being
Speaker 13: on par with US market. It's about offering more too
Speaker 13: entrepreneurs and founders, two early investors, to make sure you
Speaker 13: can you can attract them and you can compete. Otherwise
Speaker 13: this geographical network effect, we just keep on getting stronger.
Speaker 13: And yes, most European companies will end up being being
Speaker 13: listed here.
Speaker 4: No, you offer a lot to founders and in the expensures.
Speaker 4: I want an extraordinary year you're having. I'm thinking about
Speaker 4: the Figma IPO success. You've had significant exits. When I
Speaker 4: think of M and A and Whiz, how does that
Speaker 4: change the inbound that you're getting When everyone's seeing index
Speaker 4: so clearly on the map. It always has been from
Speaker 4: a geographical perspective, wins in the US, in Israel and Europe.
Speaker 13: Yeah, it's we do have a lot of we do
Speaker 13: have a lot of inbound. It's a it's been a
Speaker 13: fantastic here kind of an overnight success, ten fifteen years
Speaker 13: in the making, you know, like fig Mar, we've been
Speaker 13: investors for one more than ten years, so you know,
Speaker 13: it's all happening, you know now in some ways because
Speaker 13: the market is open, the window is open. But they
Speaker 13: have been a relationship that we've been working with for
Speaker 13: decade decade plus, and that way we bet very early
Speaker 13: on on his very young founders. I mean, Dylan was
Speaker 13: nineteen when we first invested in him, were still an intern,
Speaker 13: you know, Alex at Scale was twenty one. We is
Speaker 13: you know, our staff, we've been working with him for
Speaker 13: his previous business already, so more than a decade.
Speaker 7: So those are very very long.
Speaker 13: Term relationships that happened to materialize in some exits now.
Speaker 13: But I think that's the way we think about the business.
Speaker 13: It's not about, oh, the markets open, let's invest more
Speaker 13: and let's have a quick you know, make a quick book.
Speaker 13: You know, we're investing in the very long term, and
Speaker 13: investments we make now, we know they're going to take
Speaker 13: a decade plus to flourish and turn into very large,
Speaker 13: hopefully independent and public companies, and.
Speaker 4: That makes help. He's excited and committed to stay with you.
Speaker 4: Very briefly, how's it changing the landscape of VC there?
Speaker 13: There is a bit of a meme out there where
Speaker 13: people thinking that vics are going to follow the heads
Speaker 13: fund and and especially the product with the industry where
Speaker 13: you either go very very big or you stay very
Speaker 13: very niche and there is no place in between. I
Speaker 13: think our view al index is slightly different where we
Speaker 13: believe there is actually a midium ground that is the best,
Speaker 13: not not necessarily for for the GPS and and and
Speaker 13: the and the vcs themselves, but definitely for the entrepreneurs
Speaker 13: where you need enough scale to support entrepreneurs on the
Speaker 13: global basis. You know we cover from Tel Aviv, San Francisco.
Speaker 13: You need to offer them the services that they need
Speaker 13: in terms of hiring, in terms of marketing, in terms
Speaker 13: of sales and customer development.
Speaker 7: So you need a certain.
Speaker 13: Size to pay for that infrastructure. But you also want
Speaker 13: to be too big that you become a corporation and
Speaker 13: you know you have kind of conveyor belt of founders
Speaker 13: and it's and there is no individual relationship. Again, No,
Speaker 13: we're investing in people very early on, very often India
Speaker 13: journey when they are nineteen twenty twenty one, and that
Speaker 13: require us to a level of empathy or the level
Speaker 13: or understanding that takes just this interpret interpersonal relationship that
Speaker 13: you lose when you get to.
Speaker 7: A very loud loud scale. The very loud scale can.
Speaker 13: Be very good for the GPS themselves, but not necessarily
Speaker 13: what the funders really really needed. So I think that's
Speaker 13: why we're sticking to that kind of middle size, and
Speaker 13: we think that's the best approach.
Speaker 4: Latin Minion from Index ensures. We so appreciate having him
Speaker 4: here for the interpersonal relationship that keeps on going. Meanwhile,
Speaker 4: stick around in the next hour for an interview with
Speaker 4: New York Governor Kathie hokel right here from primary summit
Speaker 4: in New York at.
Speaker 3: Okay coming up.
Speaker 2: First responders have told Blomberg that the design of some
Speaker 2: Tesla features, such as mechanical releases for the doors, you
Speaker 2: can add complication in the chaotic mind moments after a crash.
Speaker 2: We're gonna have the details next on a Deep Bloomberg investigation.
Speaker 3: This is Bloomberg Tech.
Speaker 2: Design features on Tesla's electric vehicles, including battery powered door
Speaker 2: handles and mechanical releases, have complicated crashes and emergency situations.
Speaker 2: In particular, when Tesla's lose power, crashes can turn into
Speaker 2: deadly races against time. Reporting by Bloomberg News has found
Speaker 2: that regulators have been slow to act and complaints about
Speaker 2: Tesla's doors have piled up. I want to bring in
Speaker 2: Bloomberg's done a whole part of the team that reported this.
Speaker 2: What we are talking about in particular is the mechanical override,
Speaker 2: partly in the rear doors of some TESTSA vehicles that
Speaker 2: you need to use in the event that, in an accident,
Speaker 2: a Tesla vehicle loses power. Take us from that point
Speaker 2: and explain the investigation that Bloomberg News did.
Speaker 14: Yeah, So, to back up for a second, Tesla's our
Speaker 14: Tustle vehicles have two batteries. There is the battery that
Speaker 14: powers the car and dictates the range, and then there's
Speaker 14: a low voltage battery, typically twelve volts. In the cyber truck,
Speaker 14: it's forty eight volts that powers things like the windows,
Speaker 14: the doors, and the touch screen. If you lose power,
Speaker 14: whether because that low voltage battery dies or you're in
Speaker 14: a crash, the doors lock.
Speaker 8: And you have to get out.
Speaker 14: You have to know where the mechanical release is, and
Speaker 14: finding that mechanical release can be really challenging.
Speaker 2: There have been some events, case studies, examples in recent
Speaker 2: years where in fatal crashes the role or the function
Speaker 2: of the mechanical override was a factor.
Speaker 3: Can you explain what we learned?
Speaker 8: Yeah?
Speaker 14: So there have been several crashes, and the trick about
Speaker 14: crashes is that unfortunately a lot of the people are dead,
Speaker 14: so we can't interview them. But I found a crash
Speaker 14: in Virginia where this couple was in a terrible crash.
Speaker 14: Scores of people ran to their aid to try to
Speaker 14: help them, and they could not open the doors from
Speaker 14: the outside. They had to break a window in order
Speaker 14: to finally reach in and use the job use hydraulic
Speaker 14: cutters to cut the door open.
Speaker 2: This is a deeply reported It's a long form written piece,
Speaker 2: so I would say to the audience, go out and
Speaker 2: read it. Has TESLA responded to our reporting?
Speaker 8: They have not.
Speaker 14: I mean they were given an opportunity to respond, but
Speaker 14: they typically don't engage.
Speaker 2: Have any of the relevant regulatory agencies engage with us
Speaker 2: on the reporting.
Speaker 14: Not really, And I think the thing that's important to
Speaker 14: note is that there's really a gap in terms of
Speaker 14: how the regulations around these crashes are currently laid out.
Speaker 14: Crash testing in the United States really focuses on how
Speaker 14: well does a Tesla does a vehicle perform in like
Speaker 14: a rollover crash, and Tesla has an exemplary safety record
Speaker 14: five stars across all categories in many ways, but our
Speaker 14: crash testing doesn't look at what happens to a human
Speaker 14: being after a crash. How easy is it to get
Speaker 14: out of the vehicle, how easy is it for first
Speaker 14: responders to get in? And you're seeing more and more
Speaker 14: cars electric door handles and very strong glass that's making
Speaker 14: egress more difficult.
Speaker 2: I drive a tested vehicle, as you know, and actually
Speaker 2: the regular views of the show, no, I've never been
Speaker 2: in a crash, and I've never had to be in
Speaker 2: a situation where I've used the manual override because the
Speaker 2: battery has lost power.
Speaker 14: Do you know where your manual override is?
Speaker 9: I do.
Speaker 2: So it's different between the front, which is basically a
Speaker 2: latch in the rear where you remove a pad and
Speaker 2: there is a wire mechanism. What I understood from sources
Speaker 2: in assisting in the reporting. A little bit was that
Speaker 2: you think about the cyber truck in particular, could you
Speaker 2: explain why the design or the shape of the vehicle
Speaker 2: requires such a mechanism in the rear away from battery
Speaker 2: just very quickly.
Speaker 14: Yeah, Well, the doors are very flat or very flat,
Speaker 14: so there's not as much room inside inside the door
Speaker 14: the door panel for those electronic releases. And I think
Speaker 14: also child safety latches is also a big part of it.
Speaker 14: You don't want kids to be able to easily open
Speaker 14: a door from the back seat. But then the downside
Speaker 14: is that it's very difficult to get out.
Speaker 2: Bloomberg's on a whole with a Bloomberg Big take, go
Speaker 2: and read it. We asked Tesla for comment. We invite
Speaker 2: Tesla to comment if and when they're ready to do so.
Speaker 2: That does it for this edition of Bloomberg Tech Up. Next,
Speaker 2: New York Governor Kathi Hokel joins Bloomberg.
Speaker 3: TV from the Primary Summit.
Speaker 2: That's a conversation with Caroline that you do not want
Speaker 2: to miss coming up. A lot happened in the show
Speaker 2: actually on a market basis. It was a historic day
Speaker 2: for Oracle for Larry Ellison. We recapped Apple in the
Speaker 2: iPhone seventeen generation event and that big take on Tesla.
Speaker 2: That's the podcast. You know where to find it. From
Speaker 2: San Francisco, from New York.
Speaker 3: This is Bloomberg Tech.