WEBVTT - Twitter's Edit Button and Google's Student Data Use 0:00:02.400 --> 0:00:05.720 From the heart of where innovation, money and power collive 0:00:06.480 --> 0:00:11.040 in Silicon Valley and beyond. This is Bloomberg Technology with 0:00:11.080 --> 0:00:27.080 Emily jay I rememberly Jack in San Francisco, and this 0:00:27.080 --> 0:00:29.720 is Bloomberg Technology. Coming up in the next hour. Twitter 0:00:29.960 --> 0:00:33.199 is finally about to launch that edit button. To edit 0:00:33.400 --> 0:00:35.280 or not to edit has been one of the longest 0:00:35.360 --> 0:00:39.239 running debates in Twitter's history. Will discuss how the timing 0:00:39.400 --> 0:00:43.680 could effect it's tussle with Elon musk plaus that millions 0:00:43.720 --> 0:00:47.360 of students across the country are using free at tech tools, 0:00:47.479 --> 0:00:50.559 but all that data is at risk. As part of 0:00:50.560 --> 0:00:53.080 our ongoing series, we will chat with the Attorney General 0:00:53.159 --> 0:00:57.960 of New Mexico who's taken on Google over student privacy 0:00:58.200 --> 0:01:00.560 and should you book crypto when you're retired Mint account. 0:01:00.720 --> 0:01:03.240 We'll talk to the head of the Federal Retirement Board 0:01:03.320 --> 0:01:09.440 that oversees eight hundred billion dollars in assets. Twitter launching 0:01:09.520 --> 0:01:12.000 that at a button for the first time after years 0:01:12.160 --> 0:01:14.960 and years and years of debate. Here to tell us 0:01:14.959 --> 0:01:18.600 more bloom works Kurt Wagner. So, Kurt, this is only 0:01:18.640 --> 0:01:24.039 a test right now for paying user subscribers to Twitter Blue. 0:01:24.600 --> 0:01:27.559 How will it work? Yeah, so you get a thirty 0:01:27.600 --> 0:01:30.240 minute timer, right, so once you post your tweet, you'll 0:01:30.240 --> 0:01:33.000 have thirty minutes to go in make edits to it, 0:01:33.280 --> 0:01:37.360 uh and change before it gets kind of locked more permanently. Now, 0:01:37.400 --> 0:01:39.679 other users will be able to see a label that 0:01:39.760 --> 0:01:41.880 shows that that tweet has been edited, that we be 0:01:41.880 --> 0:01:44.360 able to click that to see kind of prior versions, right, 0:01:44.400 --> 0:01:46.880 so there's a bit of a track record of where 0:01:46.880 --> 0:01:49.360 that tweet has been. And to your point, Emily, it's 0:01:49.360 --> 0:01:51.400 only going to be available on Twitter Blue, so you 0:01:51.400 --> 0:01:54.760 will have to currently be a subscriber to Twitter in 0:01:54.800 --> 0:01:56.400 order to get access to this when they roll it 0:01:56.400 --> 0:01:58.480 out at the beginning. That could change in the future, 0:01:58.520 --> 0:02:00.080 of course, but they want to start it with the 0:02:00.120 --> 0:02:01.720 small group of people, and it kind of makes sense 0:02:01.720 --> 0:02:03.240 to start with the people who are the most die 0:02:03.280 --> 0:02:05.360 hard Twitter users, right, and those are the people willing 0:02:05.400 --> 0:02:08.560 to pay The big question is is this going to 0:02:08.680 --> 0:02:12.560 change the nature of Twitter, the dynamic of Twitter? What 0:02:12.600 --> 0:02:17.000 do you think? Well, I'm waiting for when it first 0:02:17.080 --> 0:02:19.480 rolls out to have that moment that first week right 0:02:19.480 --> 0:02:21.440 where it's like people are going to be playing jokes 0:02:21.520 --> 0:02:24.720 and and someone's inevitably gonna, you know, send one version 0:02:24.760 --> 0:02:27.239 of a tweet and change it twenty nine minutes later 0:02:27.320 --> 0:02:30.480 to something offensive, right, and everyone's gonna look silly. I 0:02:30.520 --> 0:02:32.960 do wonder though, in the long term if that's gonna 0:02:32.960 --> 0:02:35.160 die down, right, Maybe we'll have that for a week 0:02:35.280 --> 0:02:38.000 or two, But eventually, you know, that thirty minute timer 0:02:38.280 --> 0:02:41.080 really isn't that long, right, It is long enough to 0:02:41.080 --> 0:02:42.919 fix the type of It is long enough to change 0:02:43.440 --> 0:02:46.560 a link. Um in a case of very very breaking news, 0:02:46.639 --> 0:02:48.640 it could be a big deal, but I think for 0:02:48.720 --> 0:02:51.600 most stuff on Twitter, you know, it's probably not going 0:02:51.639 --> 0:02:53.720 to have a dramatic effect. Now that being said, we 0:02:53.760 --> 0:02:55.920 are heading right into an election, right, and this is 0:02:55.960 --> 0:02:59.680 a really weird time to want to try edited tweets 0:02:59.720 --> 0:03:02.200 because is all we're doing is asking for someone to 0:03:02.200 --> 0:03:05.680 come forward say something about election results or voting or whatever, 0:03:05.760 --> 0:03:07.880 and that goes viral and suddenly we're all going, why 0:03:07.960 --> 0:03:10.560 did we do this? Why do we have edited tweets? Well, 0:03:10.600 --> 0:03:16.959 exactly does this make it harder to moderate misinformation disinformation? 0:03:17.400 --> 0:03:20.760 And what is Twitter's plan, especially heading into the mid terms, 0:03:21.120 --> 0:03:23.600 to be on top of all of this. Well, we 0:03:23.639 --> 0:03:26.520 don't know about their plan for edited tweets again, just 0:03:26.680 --> 0:03:30.000 announced today it's rolling out soon, so we don't really 0:03:30.040 --> 0:03:32.200 have a good plan for how or if they're going 0:03:32.240 --> 0:03:34.280 to fact check that stuff. But Twitter across the board 0:03:34.280 --> 0:03:36.760 has always been a little bit more hands off on 0:03:36.840 --> 0:03:39.280 fact checking than than Facebook, for example, which has tons 0:03:39.320 --> 0:03:42.040 of outside fact checking partners. Twitter has more focused on 0:03:42.080 --> 0:03:45.800 specific topics that they fact check, you know, like election results, 0:03:45.800 --> 0:03:48.600 and only from accounts that are very high profile. That's 0:03:48.600 --> 0:03:52.200 why President Donald Trump's account was constantly flagged, because they 0:03:52.240 --> 0:03:54.360 kind of had that in their crosshairs there, right, And 0:03:54.440 --> 0:03:56.800 so I don't know what this is going to do, 0:03:56.880 --> 0:03:59.400 but I do think it poses an opportunity for people 0:03:59.400 --> 0:04:02.400 who might want to stir up controversy or to cause trouble. 0:04:02.680 --> 0:04:05.040 Let to pay attention to that. But again, you know, 0:04:05.160 --> 0:04:08.000 because it's it's just being tested with this small group 0:04:08.000 --> 0:04:10.520 of people for now, maybe we can avoid sort of 0:04:10.920 --> 0:04:13.000 a big issue ahead of the election. Maybe the roll 0:04:13.040 --> 0:04:16.039 out to more people will happen after that. Well, Elon 0:04:16.120 --> 0:04:18.520 must definitely starred the pot when he did that poll 0:04:18.560 --> 0:04:21.600 at the beginning of this whole Sauda asking users if 0:04:21.600 --> 0:04:24.719 they wanted it at it button or not. What do 0:04:24.720 --> 0:04:28.200 you make of the timing of this doesn't impact. What's 0:04:28.279 --> 0:04:32.600 the ongoing feud between Twitter and Elon Musk While Twitter 0:04:32.680 --> 0:04:35.279 has bent over backwards to try and make sure that 0:04:35.360 --> 0:04:38.400 we all know this was in the works before Ellen 0:04:38.520 --> 0:04:42.120 showed up on the scene. Right, So Twitter actually tweeted 0:04:42.279 --> 0:04:44.960 We're launching an edupon on April one, on April Fool's Day. 0:04:45.000 --> 0:04:47.359 Everyone ignored it because we just thought this was like 0:04:47.400 --> 0:04:49.200 a joke from the company. It turns out that was 0:04:49.240 --> 0:04:51.479 the beginning of what they had planned for this long 0:04:51.600 --> 0:04:53.560 running kind of thing. They were going to tweet it 0:04:53.560 --> 0:04:55.479 out on April one. They were gonna unveil it later. 0:04:55.760 --> 0:04:57.840 Ellen showed up and kind of messed that whole thing up. 0:04:57.880 --> 0:05:00.120 But they want everyone to know they started work this 0:05:00.279 --> 0:05:04.440 before the year before, so late last year. And that's important, right, 0:05:04.480 --> 0:05:06.880 because they do not want to create a perception where 0:05:06.880 --> 0:05:10.719 Elon is directing the product strategy at this company. Not 0:05:10.800 --> 0:05:12.480 only did they want to avoid that back when they 0:05:12.520 --> 0:05:13.840 thought he was going to be the owner, but now 0:05:13.880 --> 0:05:15.679 they really want to avoid that when the two sides 0:05:15.720 --> 0:05:18.479 are fighting, uh it is legal battle, so you know, 0:05:18.720 --> 0:05:21.400 the timing is interesting. I have to imagine that Elon 0:05:21.520 --> 0:05:25.360 maybe push the timeline quicker for Twitter, but I don't 0:05:25.360 --> 0:05:27.600 think that he's the reason that they ultimately decided to 0:05:27.600 --> 0:05:31.600 build this thing, all right, Bloomberg's Kurt Wagner, thank you 0:05:31.839 --> 0:05:35.479 for that update. Very anxious to see how the said 0:05:35.560 --> 0:05:48.640 button rolls out. Despite VCS rad raising record amounts of capital, 0:05:48.720 --> 0:05:52.240 start up fundraising is slowing down as fears of recession loom. 0:05:52.320 --> 0:05:55.000 Let's bring an Index Venture's partner Mike Fulby for his 0:05:55.040 --> 0:05:57.280 read on what's happening in the private markets. Might good 0:05:57.279 --> 0:05:59.080 to have you here in the studio, and obviously you've 0:05:59.120 --> 0:06:00.599 seen a lot of psych is in a lot of 0:06:00.680 --> 0:06:03.680 ups and downs. Where are we in this one? Emily, 0:06:03.680 --> 0:06:06.279 great to be back. Yeah. I think we're probably somewhere 0:06:06.520 --> 0:06:12.720 midstream between the downturn and somewhat of a correction and valuations, 0:06:12.800 --> 0:06:17.120 and hopefully sometime next year things will come back, but 0:06:17.160 --> 0:06:18.520 we're right in the middle of it. I would say, 0:06:18.560 --> 0:06:22.480 what does a hawk is fed mean for VC? It's tricky, right. 0:06:22.560 --> 0:06:25.200 Most of the companies that we fund lose money for 0:06:25.279 --> 0:06:27.480 a long period of time and then make money somewhere 0:06:27.520 --> 0:06:29.840 towards the end of the life. And when you have 0:06:30.040 --> 0:06:32.279 money making or positive earnings at the end of the 0:06:32.320 --> 0:06:36.400 life and Hi Hi interest rates, You discount that back 0:06:36.440 --> 0:06:38.400 to today and the value drops a lot, and that's 0:06:38.480 --> 0:06:41.760 really what's causing the downturn in all of the larger 0:06:41.920 --> 0:06:44.840 tech companies and even the private ones. So I think 0:06:44.920 --> 0:06:47.280 a hawk is fed means that we're going to be 0:06:47.360 --> 0:06:49.520 sitting in this stuff for a little while until they 0:06:49.520 --> 0:06:52.920 get inflation under control. We've had guests on the show 0:06:52.960 --> 0:06:55.120 who say they're gonna be millions of layoffs, millions of 0:06:55.160 --> 0:06:57.520 layoffs in tech, that this downturn is going to last 0:06:57.880 --> 0:06:59.800 two to three years, that this isn't going to be 0:07:00.240 --> 0:07:04.279 just a blip. How does that square with what you're projecting. 0:07:04.600 --> 0:07:07.359 I'm not convinced by that. I think when you actually 0:07:07.360 --> 0:07:09.880 look at the US economy in general, it's in a 0:07:09.880 --> 0:07:12.360 pretty healthy state. I think there are something like two 0:07:12.440 --> 0:07:16.360 job openings for every unemployed person in the US. What 0:07:16.480 --> 0:07:19.800 we look at B two B businesses in our portfolio. 0:07:20.320 --> 0:07:24.240 I wouldn't say that they're they're destroying their goals or records, 0:07:24.280 --> 0:07:27.640 but they're doing reasonably well. So overall, the economy is 0:07:27.720 --> 0:07:30.280 not in that bad as shape. Banks are in a 0:07:30.280 --> 0:07:33.360 good condition, good balance sheets and so forth. So we 0:07:33.480 --> 0:07:35.440 definitely got a little out of whack in terms of 0:07:35.520 --> 0:07:38.200 valuations and where their market was, and the consumer is 0:07:38.240 --> 0:07:41.840 definitely being a little careful with their wallet. But overall, 0:07:41.920 --> 0:07:44.360 I think that we're in a in a decent spot 0:07:44.440 --> 0:07:47.880 and I think the recovery is around the corner somewhere now. 0:07:47.960 --> 0:07:51.800 Going into this VCS raised a record amount of money. 0:07:51.920 --> 0:07:55.360 There's a lot of money in those war chests. Is 0:07:55.400 --> 0:07:57.600 it is? It hasn't been hard to find places to 0:07:57.640 --> 0:08:00.920 put the dry powder. I'd say is a very slow summer. 0:08:01.120 --> 0:08:02.920 I got a lot of text messages from my VC 0:08:03.040 --> 0:08:09.600 friends while vacationing in Italy, but but but not calling 0:08:09.640 --> 0:08:13.840 anyone out specifically, but okay, um, it's been a slow summer. 0:08:13.880 --> 0:08:16.880 I would say that we're seeing some green shoots. Uh, 0:08:16.920 --> 0:08:19.160 you know. One of the things that happened over the 0:08:19.240 --> 0:08:20.800 last couple of years. There's a lot of companies that 0:08:20.840 --> 0:08:22.760 have been seated, and those companies are coming up for 0:08:22.800 --> 0:08:26.920 Series A investments. We're seeing some growth companies get term sheets. 0:08:26.960 --> 0:08:29.600 Maybe they're not straight equity and they have some preferred 0:08:29.640 --> 0:08:33.280 structure or some general structure on these term sheets, but 0:08:33.640 --> 0:08:36.520 we're seeing it come out. And I think generally speaking, 0:08:36.559 --> 0:08:40.559 you're right venture capitalists that have capital to deploy aren't 0:08:40.559 --> 0:08:43.160 going to twiddle their sums for for the next two years, 0:08:43.160 --> 0:08:45.280 So I think you're going to see some movement. Does 0:08:45.320 --> 0:08:48.480 that mean that you know what happens for vcs? Then 0:08:48.600 --> 0:08:52.560 as the cycle progresses, will vcs not raise as much 0:08:52.679 --> 0:08:54.800 money over the next couple of years as they have 0:08:54.960 --> 0:08:57.320 over the last couple of years. I think that's the case. 0:08:57.360 --> 0:08:59.320 I think that the LPs that have invested in our 0:08:59.360 --> 0:09:01.640 funds have been drained pretty hard over the last couple 0:09:01.679 --> 0:09:04.920 of years because the I P O market is closed 0:09:04.920 --> 0:09:06.320 and there hasn't been a lot of M and A. 0:09:06.400 --> 0:09:08.640 They're not getting money back, and so they're gonna be 0:09:08.679 --> 0:09:10.920 reticent to give us more funds. And I think we're 0:09:10.920 --> 0:09:14.199 going to generally slow the pace down until we start 0:09:14.240 --> 0:09:16.640 to see the exit market open up again be able 0:09:16.640 --> 0:09:18.480 to pump some money back to the LP so they 0:09:18.520 --> 0:09:20.880 can come back our way. Now, it's interesting, we actually 0:09:20.880 --> 0:09:22.880 talked to the CEO of Pilot, which is a company 0:09:22.920 --> 0:09:27.439 that Index has invested in. They provide CFO services to startups, 0:09:27.520 --> 0:09:30.160 and they've done some surveys of their companies and found 0:09:30.200 --> 0:09:33.480 it doesn't necessarily look as dire as it sounds. Take 0:09:33.520 --> 0:09:37.000 a listen to what he had to say, two things 0:09:37.000 --> 0:09:41.120 are happening. The first is that there's definitely paying from 0:09:41.120 --> 0:09:43.800 the downturn, but I think it's more specifically and more 0:09:43.800 --> 0:09:47.560 pronacatlee felt by companies that really have nice to have 0:09:47.720 --> 0:09:50.760 offerings as opposed to really need to have offerings. And 0:09:50.840 --> 0:09:53.480 the second is, I think the dynamics and kind of 0:09:53.480 --> 0:09:56.120 the late stage in public markets are very different than 0:09:56.400 --> 0:09:58.600 what you see in the earlier kind of mid stage 0:09:58.640 --> 0:10:02.600 ecosystem for startups. What do you make of that? Yeah, 0:10:02.640 --> 0:10:05.160 I think that's pretty accurate. Um. You know, early stage, 0:10:05.240 --> 0:10:07.319 late stage startups over the last couple of years have 0:10:07.480 --> 0:10:09.680 raised a lot of money, and most of the particularly 0:10:09.720 --> 0:10:13.120 good companies have quite a strong balance sheet, so they 0:10:13.120 --> 0:10:15.200 don't need the capital. They're gonna wait for the markets 0:10:15.240 --> 0:10:18.000 to come back, They're going to paste themselves and so forth. 0:10:18.120 --> 0:10:20.800 I think the earlier stage companies, look, they just don't 0:10:20.800 --> 0:10:22.680 have as much money in their war chest. They're gonna 0:10:22.720 --> 0:10:24.240 have to come back to market. So I think we're 0:10:24.240 --> 0:10:28.000 going to see opportunities in the earlier stages. And overall, 0:10:28.080 --> 0:10:29.880 I think that there have been certain sectors in our 0:10:29.920 --> 0:10:32.840 industry where there's been heavy hype, which a ton of 0:10:32.880 --> 0:10:35.520 capital has gone into and a ton of capital will 0:10:35.559 --> 0:10:38.280 run away from those, whereas more kind of the steady, 0:10:38.440 --> 0:10:41.760 well known sectors I think will continue to perform as expected. 0:10:41.840 --> 0:10:43.560 What do you make of andres in horrow? It's writing 0:10:43.559 --> 0:10:47.040 its biggest check ever to Adam Newman. Look, you know 0:10:47.160 --> 0:10:50.680 Mark and Ben have been contrarian many times in the past. Uh, 0:10:50.720 --> 0:10:53.240 they're contrarian this time. I'd say, you know, the average 0:10:53.280 --> 0:10:56.120 polling in the industry would indicate that this wasn't the 0:10:56.120 --> 0:10:59.520 best idea ever. But you know, we'll wait and see 0:10:59.600 --> 0:11:02.680 the guy as a special guy in every sense of 0:11:02.679 --> 0:11:05.760 the word, and you know it's something that they wanted 0:11:05.800 --> 0:11:09.320 to do. We'll see. So you have and Mark Andreason 0:11:09.400 --> 0:11:11.559 doing that. On one ham, you've got Benchmark staying strong. 0:11:11.600 --> 0:11:15.440 On the other, where is index? What is your strategy 0:11:15.480 --> 0:11:18.160 in a downturn? Yeah, look, I think it's interesting. What 0:11:18.200 --> 0:11:20.240 I find interesting about this industry is that if you 0:11:20.600 --> 0:11:23.040 went back and listen to what people saying six nine 0:11:23.040 --> 0:11:25.880 months ago, you know, there was a sense of like 0:11:25.920 --> 0:11:28.240 all the industry is completely changing. You're going to go 0:11:28.280 --> 0:11:30.920 to these hedge funds that deploy capital at high velocity. 0:11:31.040 --> 0:11:34.360 They're gonna use the tech market like some kind of 0:11:34.800 --> 0:11:38.720 um you know, index market and no pun intended, and 0:11:39.000 --> 0:11:41.760 that all these smaller, more niche firms will go away, 0:11:41.760 --> 0:11:44.040 and it's turned out to not be the case. I 0:11:44.080 --> 0:11:48.480 think that the founders and entrepreneurs that take our capital 0:11:48.679 --> 0:11:52.559 are very diverse. They look for different things from their investors. 0:11:52.600 --> 0:11:55.560 Some look for folks like Benchmark, some looks for folks 0:11:55.600 --> 0:11:58.400 like and reason. Our view, we kind of think of 0:11:58.440 --> 0:12:01.760 it as curated growth. So index. The last fund we 0:12:01.840 --> 0:12:04.520 raised in totality was a little over three billion dollars 0:12:04.880 --> 0:12:08.360 in today's market, that's reasonably large, but definitely not the largest. 0:12:08.720 --> 0:12:11.160 I think that that gives us enough dry powder, enough 0:12:11.160 --> 0:12:13.920 capabilities as a firm to offer the services that our 0:12:13.920 --> 0:12:16.280 founders want. But we're not so small that we have 0:12:16.320 --> 0:12:18.120 to be nichee. So somewhere in the middle of the 0:12:18.200 --> 0:12:20.480 road is our view. If there is a bubble in 0:12:20.520 --> 0:12:23.720 the market private markets, where is that bubble? Is it crypto? 0:12:23.840 --> 0:12:27.280 Is it quote unquote web three. I don't know that 0:12:27.320 --> 0:12:30.280 there's necessarily a bubble right now. Honestly, Emily, I think 0:12:30.280 --> 0:12:33.520 that things have generally well corrected. There was a bubble 0:12:33.520 --> 0:12:36.600 in crypto, for sure. I think it's long gone yesterday, 0:12:36.640 --> 0:12:38.480 I think it was reported that n f T s 0:12:39.040 --> 0:12:42.880 on open open sea. We're down and in three or 0:12:42.920 --> 0:12:45.560 four months, so clearly the heir has come out of 0:12:45.559 --> 0:12:48.880 that one, and I think companies are trading at somewhere 0:12:48.920 --> 0:12:52.800 near realistic values right now in the public markets. You know, 0:12:52.840 --> 0:12:54.120 a lot of what I would say is a lot 0:12:54.160 --> 0:12:57.320 of the growth companies um that our growth stage right 0:12:57.360 --> 0:12:59.960 now are still holding on to the valuations that they 0:13:00.040 --> 0:13:03.520 got from the tail end of and those are probably 0:13:03.559 --> 0:13:06.199 still inflated, but they're not going to raise their next 0:13:06.280 --> 0:13:08.480 round until they can catch back up to those numbers. 0:13:08.520 --> 0:13:10.600 So you know, we're not going to see that the 0:13:10.720 --> 0:13:12.400 air come out of that balloon frou. And what's your 0:13:12.440 --> 0:13:15.880 advice on those companies that were planning to go public 0:13:15.960 --> 0:13:18.800 this year? Yeah, so there's you have two varieties, right 0:13:18.840 --> 0:13:20.800 You have the ones that don't need capital, in which 0:13:20.840 --> 0:13:23.400 case you just say, hunker down, grow your business and 0:13:23.480 --> 0:13:25.360 wait for the market to come back at some point 0:13:25.400 --> 0:13:27.720 it will. And you have the ones that need capital 0:13:27.840 --> 0:13:29.520 and if they if they need capital, they're going to 0:13:29.640 --> 0:13:32.160 go have to raise it. And you know, right now 0:13:32.200 --> 0:13:36.200 what the market is coming back with is debt. It's 0:13:36.040 --> 0:13:39.600 a structured equity, it's convertible notes and so forth. It's 0:13:39.640 --> 0:13:42.280 hard to come by a term sheet that is clean equity. 0:13:42.480 --> 0:13:44.280 You've got to figure out what the best option is, 0:13:44.679 --> 0:13:46.200 select that one and go for it. But if you 0:13:46.200 --> 0:13:47.960 need the capital, you've got to raise it, and it's 0:13:47.960 --> 0:13:50.400 out there. It's not that it's impossible to raise money 0:13:50.480 --> 0:13:53.600 right now. All right, Mike, Fully, Index Venture is good 0:13:53.600 --> 0:13:56.439 to have you back, Thank you for stopping by in person. 0:14:05.760 --> 0:14:09.040 In the world of cybersecurity, CrowdStrike reporting quarterly results that 0:14:09.120 --> 0:14:13.199 beat expectations. This week, shares fell though after an outlook 0:14:13.200 --> 0:14:16.600 scene conservative by some investors. Let's talk about all that 0:14:16.679 --> 0:14:20.320 and more with Crowdstrikes CEO George Kurtz. So, George, and 0:14:20.400 --> 0:14:21.600 light of the numbers, what do you make of the 0:14:21.600 --> 0:14:25.120 reaction with the shares here? Well, I think you have 0:14:25.160 --> 0:14:27.760 to look at the macro environment and just what's happening 0:14:27.760 --> 0:14:31.280 with interest rates and a lot of the uncertainties. So um, 0:14:31.280 --> 0:14:33.720 those are factors that are out of our control. And 0:14:34.200 --> 0:14:36.720 as I've said many times on your program over the years, 0:14:36.720 --> 0:14:38.920 you know, we can only focus on what we can control, 0:14:38.960 --> 0:14:42.800 and we posted stellar numbers. We've noted that we were 0:14:42.920 --> 0:14:45.680 the second fastest company ever to reach two billion dollars 0:14:45.680 --> 0:14:48.160 of air are and if you look at the growth rates, 0:14:48.920 --> 0:14:52.960 even you know our rule of fort it's just astounding 0:14:53.080 --> 0:14:57.880 at the scale that we're operating at. Is cybersecurity recession 0:14:57.960 --> 0:15:01.320 proof or could it be on to a threat? If companies, 0:15:02.040 --> 0:15:04.560 you know, they're deciding where to pull back and cyber 0:15:04.640 --> 0:15:07.400 is one of them, I think it's going to be 0:15:07.440 --> 0:15:10.760 difficult for companies to really pull back on cyber. They 0:15:10.840 --> 0:15:13.960 might delay some purchases, there might be more scrutiny, which 0:15:14.040 --> 0:15:16.200 is one of the things that we talked about. But 0:15:16.360 --> 0:15:17.960 at the end of the day, there's just too many 0:15:18.080 --> 0:15:21.280 drivers at the board level all the way down. Cyber 0:15:21.440 --> 0:15:24.560 is the number one risk that most boards are talking about. 0:15:25.000 --> 0:15:27.240 And then when you combine that with some of the 0:15:27.280 --> 0:15:30.760 regulatory pressures, like the SEC is coming out with some 0:15:30.840 --> 0:15:34.680 guidance around disclosing breaches, disclosing if you had to pay 0:15:35.160 --> 0:15:39.000 ransom payments. So at the end of the day, it's 0:15:39.040 --> 0:15:42.640 something that it's going to be very difficult to make 0:15:42.680 --> 0:15:44.520 it a nice to have and it really is a 0:15:44.640 --> 0:15:47.200 must have for most companies, and I think that's what 0:15:47.240 --> 0:15:50.280 we've seen so um, you know, we'll see how it 0:15:50.280 --> 0:15:52.680 plays out over time. That's our thesis, and I think 0:15:52.680 --> 0:15:55.120 we're in a great spot to consolidate a lot of 0:15:55.160 --> 0:15:57.920 spend in our in our sector. Let's talk about your 0:15:57.920 --> 0:16:01.400 assessment of the threat landscape right now. How concerned are 0:16:01.440 --> 0:16:06.560 you about China specifically upping you know, the groundwork for 0:16:06.680 --> 0:16:10.720 launching more cyber attacks against the West, given rising tensions 0:16:11.320 --> 0:16:14.960 with Taiwan. You always have to be concerned about China 0:16:15.040 --> 0:16:17.600 and other nations states. But China certainly is prolific in 0:16:17.680 --> 0:16:21.840 its attacks. It has great capabilities and it continues to 0:16:21.880 --> 0:16:25.160 be active in many, many different areas. So as as 0:16:25.200 --> 0:16:29.240 we've seen before, as the geo political environment changes, uh, 0:16:29.320 --> 0:16:32.000 the attacks change. They may focus on different groups and 0:16:32.040 --> 0:16:37.760 gathering information. Uh, they may target uh you know, chip manufacturers, etcetera. 0:16:37.840 --> 0:16:40.800 I mean these are these are all areas that are 0:16:40.840 --> 0:16:44.280 of concern to many, uh, you know, executives in the 0:16:44.280 --> 0:16:48.480 marketplace right now, and when the geopolitical winds change, you 0:16:48.520 --> 0:16:51.160 have to be prepared to make sure that your systems 0:16:51.160 --> 0:16:56.200 are protected. Chris Crabs, the former director of SISA, suggested 0:16:56.240 --> 0:16:59.080 these attacks would come on the supply chain. I mean 0:16:59.080 --> 0:17:02.360 you mentioned chip pack trees. Um you know how vulnerable 0:17:02.400 --> 0:17:06.040 do you think the supply chain is well. Supply chain 0:17:06.080 --> 0:17:10.480 attacks are a grave concern for many companies, and getting 0:17:10.520 --> 0:17:12.439 back to the board of directors, it's it is a 0:17:12.520 --> 0:17:15.520 huge risk. We've seen some of the large attacks over 0:17:15.560 --> 0:17:17.760 the past couple of years, and whether that's in the 0:17:17.920 --> 0:17:21.639 software supply chain or even uh you know, there's software 0:17:21.640 --> 0:17:24.679 that goes into the code of these chips. Obviously that 0:17:24.680 --> 0:17:28.040 can be problematic, so UM it's one of those areas. 0:17:28.119 --> 0:17:32.199 It's very very difficult to identify these. They do have 0:17:32.240 --> 0:17:36.040 a long tail and it's something that companies and governments 0:17:36.080 --> 0:17:40.600 need to be really vigilant about. We're preparing for a 0:17:40.680 --> 0:17:44.399 suite of new regulations coming from CSA, the f TC, 0:17:44.440 --> 0:17:48.200 the f d A, the Department of Energy and Transportation. 0:17:48.320 --> 0:17:51.120 What are you specifically preparing for it when it comes 0:17:51.119 --> 0:17:54.439 to regulation, well, I think you have to look at 0:17:54.440 --> 0:17:57.520 the regulation itself, and there's a lot of regulation that's 0:17:57.560 --> 0:18:00.840 that has the best of intentions, but then you have 0:18:00.920 --> 0:18:03.639 to look at how these are implemented and what's important. 0:18:04.160 --> 0:18:07.040 UM and we do a lot of breach responses. We're 0:18:07.320 --> 0:18:09.440 you know, one of the top two breach response firms 0:18:09.440 --> 0:18:12.639 in the world. UM and in the middle of a breach. 0:18:12.720 --> 0:18:15.560 It's it's very difficult to be talking about all the disclosures. 0:18:15.600 --> 0:18:17.520 So I think it's really important to understand the time 0:18:17.520 --> 0:18:22.080 frame and not to be able to compromise an investigation. 0:18:22.480 --> 0:18:25.600 And then what are the parameters around that, What is material, 0:18:25.720 --> 0:18:28.560 what are what should be disclosed, and how do you 0:18:28.560 --> 0:18:30.800 disclose it. I think there's a lot of complexity around that. 0:18:31.400 --> 0:18:33.399 We're at the table trying to work through that with 0:18:33.440 --> 0:18:36.879 many organizations. But what's important is that people have visibility 0:18:36.920 --> 0:18:39.080 because you can't just say you didn't know about it, right. 0:18:39.119 --> 0:18:41.280 You have to take measures to be able to instrument 0:18:41.280 --> 0:18:44.159 your systems like what CrowdStrike does, to be able to 0:18:44.200 --> 0:18:48.399 identify and prevent against these potential breaches. All right, George 0:18:48.480 --> 0:18:51.640 Kurt's CEO of crowd Strike. Always good to have George, 0:18:51.640 --> 0:19:02.640 Thank you for stopping by. Welcome back to Bloomberg Technology. 0:19:02.640 --> 0:19:05.920 I'm Emily changing San Francisco, continuing our coverage of education 0:19:05.960 --> 0:19:09.560 technology this week. New Mexico has been at the forefront 0:19:09.680 --> 0:19:13.159 of child privacy. The state sued Google just before the 0:19:13.200 --> 0:19:17.040 pandemic over the collection of personal information about children without 0:19:17.119 --> 0:19:21.320 proper parental consent. New Mexico school districts, especially those with 0:19:21.359 --> 0:19:25.040 fewer resources, use Google's free education tools, but the state 0:19:25.080 --> 0:19:29.280 says the company improperly used student data. Joining us now 0:19:29.400 --> 0:19:31.880 one of the most proactive prosecutors in the country when 0:19:31.920 --> 0:19:35.120 it comes to kids, tech and privacy. Hector Balderis, Attorney 0:19:35.160 --> 0:19:38.040 General of New Mexico. Attorney General Balderis, thank you so 0:19:38.160 --> 0:19:41.920 much for joining us. Glad to be with you. So 0:19:42.400 --> 0:19:46.919 this suit back in of Google, which was before the 0:19:46.960 --> 0:19:50.480 pandemic even hit. At that time, you you said your 0:19:50.520 --> 0:19:54.200 investigation revealed that Google tracks children across the Internet, across 0:19:54.240 --> 0:19:58.080 devices in their homes, and well outside the educational sphere, 0:19:58.119 --> 0:20:03.439 all without obtaining verifile parental consent. What concerns you so 0:20:03.520 --> 0:20:06.840 much about what you saw that you believed Google was 0:20:06.880 --> 0:20:10.240 doing with student data. Well, there are three areas of 0:20:10.320 --> 0:20:12.720 risk that was very concerned with. And the reason I 0:20:12.720 --> 0:20:15.360 did bring the investigation in the lawsuit first is that 0:20:16.200 --> 0:20:19.639 our nation, our congress, members of law enforcement have been 0:20:20.040 --> 0:20:23.760 primarily primarily asleep at the wheel when it comes to 0:20:23.880 --> 0:20:27.000 data privacy. In other words, banks are not protected, our 0:20:27.040 --> 0:20:30.679 personal information as adults is not very well protected. And 0:20:30.720 --> 0:20:35.680 so I already knew the environment was very difficult Number two, Uh, 0:20:35.720 --> 0:20:38.560 these are children and miners, and so when we already 0:20:38.560 --> 0:20:44.920 have an inadequate environment that exploits consumerism and privacy, I 0:20:44.960 --> 0:20:48.920 was very concerned that from a safety perspective, these technology 0:20:48.920 --> 0:20:53.840 companies were tracking, marketing and really monetizing on the backs 0:20:53.840 --> 0:20:57.399 of children. And then finally, number three, it's a violation 0:20:57.480 --> 0:21:00.600 of federal law. There was already a prohibition built into 0:21:00.600 --> 0:21:06.480 the law that says that technology companies cannot market and 0:21:06.600 --> 0:21:12.480 profitier and gather data of miners without the consent of parents. 0:21:12.560 --> 0:21:16.120 And so it was really three tiers of risk. And 0:21:16.200 --> 0:21:18.960