1 00:00:02,000 --> 00:00:06,760 Speaker 1: This is mesters in business with very results, on Bloomberg 2 00:00:06,880 --> 00:00:11,799 Speaker 1: radio this week on the podcast. What can I say? 3 00:00:11,840 --> 00:00:16,520 Speaker 1: Another great conversation with an extra special guest, Steve Case. 4 00:00:16,840 --> 00:00:23,200 Speaker 1: It really is legendary in everything from putting America Online, 5 00:00:23,640 --> 00:00:27,720 Speaker 1: full pun intended, uh, to being the first Internet company 6 00:00:27,720 --> 00:00:30,800 Speaker 1: to go public, the largest merger in history with a 7 00:00:31,040 --> 00:00:34,000 Speaker 1: l Time Warner. And you would think that's enough of 8 00:00:34,000 --> 00:00:38,080 Speaker 1: a resume, but he didn't stop there. Uh. He basically 9 00:00:38,120 --> 00:00:41,600 Speaker 1: set up a foundation, joined the giving pledge and became 10 00:00:41,760 --> 00:00:48,160 Speaker 1: very active in both policy and entrepreneurship. Revolution is the 11 00:00:48,240 --> 00:00:52,560 Speaker 1: outgrowth of his family office that does everything from seed 12 00:00:52,640 --> 00:00:57,400 Speaker 1: to venture to growth investing. Uh. He was instrumental in 13 00:00:57,480 --> 00:01:02,440 Speaker 1: getting a number of very positive policy actions passed over 14 00:01:02,480 --> 00:01:06,240 Speaker 1: the past decade, and now he is taking his act 15 00:01:06,280 --> 00:01:10,080 Speaker 1: on the road and revealing too much of America, how 16 00:01:10,160 --> 00:01:14,039 Speaker 1: much energy and entrepreneurship there is away from the big 17 00:01:14,080 --> 00:01:16,880 Speaker 1: money centers like New York and San Francisco, in the 18 00:01:16,880 --> 00:01:19,679 Speaker 1: heartland of America, and his new book rise with the 19 00:01:19,720 --> 00:01:24,240 Speaker 1: rest describes that experience. I found this conversation to be 20 00:01:24,280 --> 00:01:28,480 Speaker 1: fascinating and if you are at all interested in technology, venture, 21 00:01:28,600 --> 00:01:32,920 Speaker 1: startups entrepreneurship, I suspect you will also so, with no 22 00:01:32,959 --> 00:01:37,360 Speaker 1: further ADO, my conversation with Steve Case. I've interviewed a 23 00:01:37,440 --> 00:01:40,240 Speaker 1: number of people from revolution. I've spoken to your wife 24 00:01:40,240 --> 00:01:44,560 Speaker 1: about the case foundation. But let's talk about your background. 25 00:01:44,640 --> 00:01:49,360 Speaker 1: Your your entrepreneurial career really begins in when you co 26 00:01:49,560 --> 00:01:52,919 Speaker 1: found America Online, which turned out to be the first 27 00:01:53,080 --> 00:01:56,320 Speaker 1: Internet company to go public. Uh, tell us a little 28 00:01:56,320 --> 00:01:58,880 Speaker 1: bit about the founding of a o L. where did 29 00:01:58,880 --> 00:02:02,840 Speaker 1: this idea come from and what was that experience like? Well, 30 00:02:02,840 --> 00:02:05,960 Speaker 1: it was an interesting journey. I actually stumbled onto the 31 00:02:06,040 --> 00:02:10,040 Speaker 1: idea the Internet in U Nineteen seventy. I was a 32 00:02:10,120 --> 00:02:13,400 Speaker 1: senior in college. I was hearing about these things called 33 00:02:13,480 --> 00:02:16,720 Speaker 1: video tex and teletext, interactive TV, and the thing in 34 00:02:16,800 --> 00:02:20,400 Speaker 1: Minitel in France and Prestel and UK, all these interactive 35 00:02:20,440 --> 00:02:22,560 Speaker 1: service I was really intrigued and I read a book 36 00:02:22,600 --> 00:02:26,280 Speaker 1: by Alvin Toffler, the futurists called the third wave, and 37 00:02:26,320 --> 00:02:29,680 Speaker 1: he basically was talking about this coming kind of electronic frontier, 38 00:02:29,720 --> 00:02:32,440 Speaker 1: electronic cottage, and I was I was smitten, I was mesmerized. 39 00:02:32,480 --> 00:02:34,040 Speaker 1: So I knew I wanted to do that. When I 40 00:02:34,080 --> 00:02:36,800 Speaker 1: graduated from college in Nineteen Eighty. UH, there were no 41 00:02:36,840 --> 00:02:38,919 Speaker 1: internet companies to go to work for because it was 42 00:02:38,960 --> 00:02:42,000 Speaker 1: more of an idea. Uh, and venture capital's back then 43 00:02:42,000 --> 00:02:44,239 Speaker 1: weren't backing, you know, twenty one year olds coming out 44 00:02:44,240 --> 00:02:47,200 Speaker 1: of college. So I decided to work for some big companies, 45 00:02:47,200 --> 00:02:49,880 Speaker 1: for all, procter and gamble and then Pepsico. Then moved 46 00:02:49,919 --> 00:02:52,200 Speaker 1: to the Washington D C area to join a startup 47 00:02:52,480 --> 00:02:55,440 Speaker 1: that failed, but thankfully two of the people I met there, 48 00:02:55,520 --> 00:02:58,280 Speaker 1: Jim Kimsey and Mark Saraff and I co founded America 49 00:02:58,280 --> 00:03:02,440 Speaker 1: Online in the in the in the back then only 50 00:03:02,480 --> 00:03:05,359 Speaker 1: three percent of people are online and those three percent 51 00:03:05,400 --> 00:03:07,840 Speaker 1: we're only on an hour a week. So it's still 52 00:03:07,880 --> 00:03:10,079 Speaker 1: pretty early days in terms of the Internet. But really 53 00:03:10,120 --> 00:03:12,799 Speaker 1: believe that someday the Internet would be pervasive, that it 54 00:03:12,840 --> 00:03:15,560 Speaker 1: would be a mainstream phenomenon, and we set out to 55 00:03:15,600 --> 00:03:18,520 Speaker 1: try to get America Online. Yeah, this this Internet thing 56 00:03:18,639 --> 00:03:20,600 Speaker 1: is going to be big one day. I think. I 57 00:03:20,639 --> 00:03:23,760 Speaker 1: think you you were early in that assessment. So I 58 00:03:23,840 --> 00:03:26,639 Speaker 1: was going to ask you why such a something, so 59 00:03:27,120 --> 00:03:31,440 Speaker 1: fundamental block and tackling is access. But really the answer 60 00:03:31,520 --> 00:03:34,040 Speaker 1: is there was no access back then, or other than 61 00:03:34,120 --> 00:03:37,800 Speaker 1: mainframes at universities in the Department of Defense Very few 62 00:03:37,840 --> 00:03:40,520 Speaker 1: people in the real world had. Actually, when we started, 63 00:03:41,160 --> 00:03:44,040 Speaker 1: it was it was the Internet was restricted to government 64 00:03:44,080 --> 00:03:48,600 Speaker 1: agencies and educational institutions. Actually was illegal for businesses or 65 00:03:48,720 --> 00:03:52,000 Speaker 1: consumers to be on the Internet. In a few years later, 66 00:03:52,280 --> 00:03:56,160 Speaker 1: Congress passed the telecom actor commercialize the Internet. Uh So, 67 00:03:56,200 --> 00:03:58,160 Speaker 1: when we were getting started we had to create sort 68 00:03:58,160 --> 00:04:00,760 Speaker 1: of this parallel world, our own kind of email systems, 69 00:04:00,760 --> 00:04:03,040 Speaker 1: our own, you know, kind of servers, because we couldn't 70 00:04:03,080 --> 00:04:05,040 Speaker 1: connect to the UH, the Internet. But we knew it 71 00:04:05,120 --> 00:04:07,280 Speaker 1: was only a matter of time before those worlds would 72 00:04:07,520 --> 00:04:10,520 Speaker 1: would blur together, merge together. Uh. And in our early 73 00:04:10,560 --> 00:04:12,800 Speaker 1: days we really just tried to figure out, like many startups, 74 00:04:13,080 --> 00:04:15,520 Speaker 1: how to get noticed. They a lie. Was Frankly harder 75 00:04:15,560 --> 00:04:18,279 Speaker 1: because we were in the northern Virginia area outside of 76 00:04:18,279 --> 00:04:20,760 Speaker 1: Washington D C. There was no venture capital, you know, there. 77 00:04:20,760 --> 00:04:23,320 Speaker 1: We had to raise money from other places. Uh. People 78 00:04:23,360 --> 00:04:25,880 Speaker 1: would reluctant to leave a big company to go to 79 00:04:25,920 --> 00:04:28,240 Speaker 1: a small company. There are a lot of challenges that 80 00:04:28,279 --> 00:04:30,640 Speaker 1: we face. Frankly, helps inspire some of the work we're 81 00:04:30,640 --> 00:04:32,200 Speaker 1: now doing with the rise of the rest. How do 82 00:04:32,240 --> 00:04:35,279 Speaker 1: we back entrepreneurs and places outside of Silicon Valley. I 83 00:04:35,279 --> 00:04:37,760 Speaker 1: think my own experience building a o l in in 84 00:04:37,839 --> 00:04:41,440 Speaker 1: one of those forgotten places, left behind places that people 85 00:04:41,480 --> 00:04:44,080 Speaker 1: don't think of as startup, you know, kind of hubs, 86 00:04:44,360 --> 00:04:46,919 Speaker 1: kind of helped inform some of that that work and 87 00:04:46,800 --> 00:04:49,359 Speaker 1: it and it took us a while. The the eventually, 88 00:04:49,400 --> 00:04:51,919 Speaker 1: in the mid nineties, the Internet became more of a 89 00:04:51,960 --> 00:04:55,080 Speaker 1: mainstream phenomenon. Hit a tipping point, but for the better 90 00:04:55,080 --> 00:04:56,799 Speaker 1: part of a decade it was it was a struggle 91 00:04:56,880 --> 00:04:58,680 Speaker 1: or a couple of times we almost hit the wall. 92 00:04:58,760 --> 00:05:01,000 Speaker 1: Had to go through some layoffs. It was not obvious 93 00:05:01,040 --> 00:05:03,600 Speaker 1: to most people that the Internet would ever be something 94 00:05:03,640 --> 00:05:06,120 Speaker 1: more than a niche kind of hobbyist kind of phenomenon. 95 00:05:06,640 --> 00:05:12,119 Speaker 1: Even with public it was uh, you know, we raised 96 00:05:12,120 --> 00:05:14,600 Speaker 1: a whopping ten million dollars in our I P o. 97 00:05:14,720 --> 00:05:18,560 Speaker 1: The value of the company that day was seventy million dollars. Basically, 98 00:05:18,560 --> 00:05:20,200 Speaker 1: nobody knew or cared what we were doing. You know, 99 00:05:20,360 --> 00:05:23,039 Speaker 1: nobody really was that interested at the time and the Internet, 100 00:05:23,080 --> 00:05:25,120 Speaker 1: we had been at it for coming on a decade. 101 00:05:25,120 --> 00:05:27,960 Speaker 1: It had only a couple hundred thousand customers. Uh. But 102 00:05:28,040 --> 00:05:31,280 Speaker 1: thankfully the next decade things really accelerated in terms of 103 00:05:31,360 --> 00:05:33,400 Speaker 1: the growth of the company and growth in the evaluation, 104 00:05:33,520 --> 00:05:35,520 Speaker 1: things like that. But it's also, I think, a lesson 105 00:05:35,560 --> 00:05:37,560 Speaker 1: for me I try to carry into the work we 106 00:05:37,600 --> 00:05:41,799 Speaker 1: now do with revolution that sometimes revolutions happen in evolutionary ways. 107 00:05:41,880 --> 00:05:44,919 Speaker 1: It's it's it's not an overnight success. There's a a 108 00:05:45,000 --> 00:05:47,960 Speaker 1: slog before finally you build some momentum, and that was 109 00:05:48,040 --> 00:05:50,240 Speaker 1: my experience with the well, the first decade was hard 110 00:05:50,279 --> 00:05:52,760 Speaker 1: and slow. The second decade really you know, things really 111 00:05:52,800 --> 00:05:55,599 Speaker 1: took off. So was d c just a coincidence of 112 00:05:55,640 --> 00:05:58,360 Speaker 1: where you have to be located, or was that lack 113 00:05:58,440 --> 00:06:03,800 Speaker 1: of Um legislative permission part of the reason? You had 114 00:06:03,800 --> 00:06:08,200 Speaker 1: to locate close to Congress and push that forward? So 115 00:06:08,360 --> 00:06:11,239 Speaker 1: they basically allowed the rest of us to get online. 116 00:06:11,400 --> 00:06:13,440 Speaker 1: Now the reason I moved to D C was more 117 00:06:13,440 --> 00:06:16,200 Speaker 1: of an accident. There was interesting company. I thought it 118 00:06:16,200 --> 00:06:20,320 Speaker 1: was interesting company. They joined three that had a service 119 00:06:20,320 --> 00:06:23,000 Speaker 1: called game line and at the time you might recall this, 120 00:06:23,120 --> 00:06:25,279 Speaker 1: some of your listeners may not, but the very few 121 00:06:25,279 --> 00:06:27,320 Speaker 1: people had home computers, but a lot of people had 122 00:06:27,320 --> 00:06:29,799 Speaker 1: Atari game machines and so the idea of this product, 123 00:06:30,080 --> 00:06:33,600 Speaker 1: as you plugged the game cartridge that had a communications 124 00:06:33,640 --> 00:06:36,279 Speaker 1: capability a modem built in and you could download videogain's 125 00:06:36,279 --> 00:06:38,840 Speaker 1: almost like having an in home arc, like a Netflix 126 00:06:38,880 --> 00:06:41,400 Speaker 1: for for videos. So it's a modem and it looked 127 00:06:41,440 --> 00:06:44,200 Speaker 1: like but you also you had a ad a phone connection, 128 00:06:44,240 --> 00:06:45,600 Speaker 1: and so I thought this was a great way to 129 00:06:45,760 --> 00:06:47,880 Speaker 1: kind of enter that world that I've been reading about 130 00:06:47,880 --> 00:06:51,000 Speaker 1: and wanting to get into. But unfortunately, just as the 131 00:06:51,040 --> 00:06:54,160 Speaker 1: product came to market, the whole Atari game market blew 132 00:06:54,240 --> 00:06:57,760 Speaker 1: up and retailers didn't want any new products and suddenly 133 00:06:57,800 --> 00:07:01,479 Speaker 1: things were looking pretty, pretty, pretty desperate. So that but 134 00:07:01,520 --> 00:07:03,120 Speaker 1: that's why I moved to the area and then because 135 00:07:03,120 --> 00:07:05,520 Speaker 1: I was already there and these two people I mentioned 136 00:07:05,520 --> 00:07:07,839 Speaker 1: were also part of that company. You know, the three 137 00:07:07,880 --> 00:07:10,040 Speaker 1: of us, you know, kind of CO founded America Online 138 00:07:10,040 --> 00:07:12,720 Speaker 1: brought some of the team from that previous company with us. 139 00:07:12,760 --> 00:07:15,520 Speaker 1: So it was accidental to be there, but it turned 140 00:07:15,520 --> 00:07:18,480 Speaker 1: out to be an advantage because, as you say, one 141 00:07:18,520 --> 00:07:19,920 Speaker 1: of the things that we had to spend a lot 142 00:07:19,960 --> 00:07:21,840 Speaker 1: of time in the early days of the Internet was 143 00:07:22,160 --> 00:07:26,280 Speaker 1: public policy, getting the regulations right, commercializing Internet, getting things 144 00:07:26,400 --> 00:07:28,600 Speaker 1: right for e commerce, trying to keep the Internet safe 145 00:07:28,600 --> 00:07:31,200 Speaker 1: for kids, things like that, and being in the in 146 00:07:31,280 --> 00:07:33,640 Speaker 1: the WASHINGT D C area proved to be important and, frankly, 147 00:07:33,640 --> 00:07:35,920 Speaker 1: it's proven to be important again now as we're investing, 148 00:07:36,280 --> 00:07:38,840 Speaker 1: because policy is becoming much more of a front and 149 00:07:38,880 --> 00:07:41,360 Speaker 1: center issue for more and more companies and health tech, 150 00:07:41,440 --> 00:07:44,680 Speaker 1: sports tech, food and egg these are these are sectors 151 00:07:44,680 --> 00:07:47,880 Speaker 1: where there's some regulations and entrepreneurs need to understand that, 152 00:07:47,920 --> 00:07:50,240 Speaker 1: investors need to understand that. So I think we kind 153 00:07:50,240 --> 00:07:52,680 Speaker 1: of have a kind of bit of Home Court advantage 154 00:07:52,720 --> 00:07:55,280 Speaker 1: being located in Washington d C uh and having a 155 00:07:55,360 --> 00:07:58,360 Speaker 1: front row seat in terms of understanding how Congress works. 156 00:07:58,360 --> 00:08:01,040 Speaker 1: And you know, things happened, which I think bodes well 157 00:08:01,080 --> 00:08:04,440 Speaker 1: for this next phase of innovation where policy is is 158 00:08:04,520 --> 00:08:07,200 Speaker 1: much more central. We're definitely going to talk about the 159 00:08:07,280 --> 00:08:09,840 Speaker 1: jobs act and some of the public service you've done, 160 00:08:10,240 --> 00:08:13,440 Speaker 1: but I want to stick with a O. L is 161 00:08:13,480 --> 00:08:17,560 Speaker 1: the first Internet company to go public. Subsequently runs up 162 00:08:17,600 --> 00:08:22,080 Speaker 1: eleven thousand six hundred and six. Not Too Shabby. Tell 163 00:08:22,200 --> 00:08:24,920 Speaker 1: us what your experience was like being at the helm 164 00:08:24,960 --> 00:08:27,520 Speaker 1: of a company as it as it went public? Well, 165 00:08:27,560 --> 00:08:29,960 Speaker 1: the early days we're still a little slow, but then 166 00:08:29,960 --> 00:08:34,079 Speaker 1: finally in the ninety seven, things really took off and 167 00:08:34,880 --> 00:08:38,120 Speaker 1: our growth dramatically accelerated. Went from a couple hundred thousand 168 00:08:38,440 --> 00:08:41,800 Speaker 1: customers to tens of millions of customers at market. Kappa 169 00:08:41,880 --> 00:08:44,280 Speaker 1: mentioned when we went public of seventy million at a peak. 170 00:08:44,880 --> 00:08:47,920 Speaker 1: Eight years later a hundred sixty billion dollars. So it 171 00:08:47,960 --> 00:08:50,240 Speaker 1: really was quite a ride. And we went from having 172 00:08:50,920 --> 00:08:53,079 Speaker 1: less than to our employees when we went public to 173 00:08:53,320 --> 00:08:55,760 Speaker 1: eight years later having ten thousand employees and then we 174 00:08:55,840 --> 00:08:58,480 Speaker 1: emerged with Time Warner or something. It was ninety thousand employees. 175 00:08:58,520 --> 00:09:00,480 Speaker 1: So it was it was quite a you know, kind 176 00:09:00,520 --> 00:09:03,000 Speaker 1: of a rocket ship and I recognized as I the 177 00:09:03,040 --> 00:09:06,200 Speaker 1: company was scaling, I as the leader, as a CEO, 178 00:09:06,400 --> 00:09:09,320 Speaker 1: needed to constantly rethink what my job should be, what 179 00:09:09,400 --> 00:09:13,199 Speaker 1: I should focus on, constantly re rejigger things with the team, 180 00:09:13,280 --> 00:09:15,560 Speaker 1: building the team for the business we'd have a couple 181 00:09:15,559 --> 00:09:17,320 Speaker 1: of years from now, not from the business we had 182 00:09:17,320 --> 00:09:19,360 Speaker 1: today or certainly the business we had in the in 183 00:09:19,400 --> 00:09:22,720 Speaker 1: the past. So it was it was a rapid pace 184 00:09:22,800 --> 00:09:25,160 Speaker 1: of of learning a lot in terms of being a 185 00:09:25,200 --> 00:09:28,560 Speaker 1: public company growing, you know, so so rapidly, and also 186 00:09:28,600 --> 00:09:31,360 Speaker 1: I recognized, because a o well was at the time 187 00:09:31,920 --> 00:09:34,040 Speaker 1: the leader in the United States, that I had a 188 00:09:34,240 --> 00:09:36,760 Speaker 1: role to play in not just running a company but 189 00:09:36,880 --> 00:09:40,480 Speaker 1: being sort of an evangelist for the medium and advocate 190 00:09:40,520 --> 00:09:43,680 Speaker 1: for the medium and try to weigh in on policy 191 00:09:43,720 --> 00:09:46,080 Speaker 1: issues to try to make sure that the Internet really 192 00:09:46,080 --> 00:09:49,040 Speaker 1: had a chance to flourish. You mentioned the a well 193 00:09:49,160 --> 00:09:52,600 Speaker 1: Time Warner merger. At the time it was the largest 194 00:09:52,640 --> 00:09:56,520 Speaker 1: merger in history and somehow you guys a o l 195 00:09:56,600 --> 00:10:00,040 Speaker 1: shareholders ended up with a majority of the stock and 196 00:10:00,080 --> 00:10:04,000 Speaker 1: the Time Warner was arguably a much larger, more established company. 197 00:10:04,040 --> 00:10:07,680 Speaker 1: What was that process like of negotiations? Did you approach them? 198 00:10:07,679 --> 00:10:09,679 Speaker 1: Did they come to you? Tell us how how that 199 00:10:09,720 --> 00:10:12,240 Speaker 1: came about? Well, it came about because a o L 200 00:10:12,720 --> 00:10:15,160 Speaker 1: had been growing rapidly and was a leader in what 201 00:10:15,280 --> 00:10:18,840 Speaker 1: was then called the dial up era, the narrow band era, 202 00:10:18,880 --> 00:10:21,640 Speaker 1: where you were connecting your computers to phone lines. But 203 00:10:21,720 --> 00:10:24,440 Speaker 1: we needed a path to broadband and the Best Path 204 00:10:24,559 --> 00:10:27,880 Speaker 1: was cable system which had high speed access. And so 205 00:10:28,040 --> 00:10:31,520 Speaker 1: strategically it was a real value in emerging with Time Warner. 206 00:10:31,520 --> 00:10:34,960 Speaker 1: And we also believed as the Internet evolved and you 207 00:10:35,000 --> 00:10:38,000 Speaker 1: had higher speed, you have more multimedia content and having 208 00:10:38,040 --> 00:10:40,760 Speaker 1: some of the brands that the Warner Brothers studios and 209 00:10:40,800 --> 00:10:44,400 Speaker 1: Warner Music and CNN and HBO and so forth, all 210 00:10:44,440 --> 00:10:46,880 Speaker 1: part of this company would would advantage us. And similarly, 211 00:10:47,640 --> 00:10:50,240 Speaker 1: Time Warner was a great company, been built through acquisitions 212 00:10:50,280 --> 00:10:52,559 Speaker 1: over more than half a century, but they didn't really 213 00:10:52,600 --> 00:10:55,080 Speaker 1: have a viable path to digital. They were trying a 214 00:10:55,080 --> 00:10:57,280 Speaker 1: bunch of things, none of them worked out particularly well. 215 00:10:57,360 --> 00:10:59,840 Speaker 1: So we both had a strategic need to come to 216 00:11:00,000 --> 00:11:03,920 Speaker 1: other and also, frankly, from an all standpoint, are representing 217 00:11:03,920 --> 00:11:07,880 Speaker 1: our shareholders. We recognized there was some value and diversification. 218 00:11:07,920 --> 00:11:12,800 Speaker 1: Our stock had run up quite significantly and owning a 219 00:11:12,840 --> 00:11:15,280 Speaker 1: share of a business that had a more diversified mix 220 00:11:15,320 --> 00:11:18,200 Speaker 1: of things would make sense. So I did approach Jerry Levin, 221 00:11:18,280 --> 00:11:20,720 Speaker 1: as the it was the CEO of Time Warner at 222 00:11:20,720 --> 00:11:22,920 Speaker 1: the time, and basically said strategically, I think it makes 223 00:11:22,920 --> 00:11:25,080 Speaker 1: a lot of sense if we put these companies together. 224 00:11:25,120 --> 00:11:27,360 Speaker 1: We have an opportunity to really kind of lead in 225 00:11:27,360 --> 00:11:29,560 Speaker 1: the future and in a lot of different ways, streaming 226 00:11:29,600 --> 00:11:32,560 Speaker 1: and and and so forth. Um and and within the 227 00:11:32,559 --> 00:11:35,840 Speaker 1: first minute or two of my my little pitch I said, 228 00:11:35,840 --> 00:11:37,760 Speaker 1: and I'd be willing to step aside a CEO to 229 00:11:38,080 --> 00:11:40,280 Speaker 1: allow you to be CEO The combined company, because I 230 00:11:40,640 --> 00:11:42,880 Speaker 1: believe in this, in this idea, and that's what happened. Eventually. 231 00:11:42,880 --> 00:11:44,680 Speaker 1: It took us a little while to put a deal together, 232 00:11:45,559 --> 00:11:47,480 Speaker 1: but we didn't finally took a little while to get 233 00:11:47,480 --> 00:11:49,600 Speaker 1: it approved, but finally it did get approved and I 234 00:11:49,600 --> 00:11:52,880 Speaker 1: did step down as a CEO. So there's a theme 235 00:11:52,920 --> 00:11:55,840 Speaker 1: I keep noticing, and lots of the things you've done, 236 00:11:56,400 --> 00:11:59,120 Speaker 1: whether it was a well or the Time Warner merger, 237 00:11:59,160 --> 00:12:02,800 Speaker 1: and we'll talk about revolution in a bit, but everything 238 00:12:02,840 --> 00:12:05,960 Speaker 1: you seem to do seems to be both innovative and 239 00:12:06,160 --> 00:12:10,000 Speaker 1: highly disruptive. Is this by design? Was that just a 240 00:12:10,080 --> 00:12:14,600 Speaker 1: happy accident? Well, we're kind to say that. I like to, 241 00:12:16,320 --> 00:12:18,200 Speaker 1: and I think a lot of entrepreneurs, to pick battles 242 00:12:18,240 --> 00:12:20,600 Speaker 1: worth fighting, kind of mountains worth climbing. You know, I 243 00:12:20,640 --> 00:12:23,600 Speaker 1: don't you know if it's easy. Uh, it's not that interesting. 244 00:12:23,640 --> 00:12:27,360 Speaker 1: And in fact, what I get motivated by it. Again, 245 00:12:27,360 --> 00:12:29,560 Speaker 1: this is true with many entrepreneurs. If, as somebody says, 246 00:12:30,360 --> 00:12:33,560 Speaker 1: it can't be done, okay, let's you know, game on, 247 00:12:33,600 --> 00:12:37,160 Speaker 1: we're gonna yeah, I I in the early days of 248 00:12:37,160 --> 00:12:39,200 Speaker 1: the Internet, people say it can't be done. The Internet 249 00:12:39,280 --> 00:12:42,240 Speaker 1: was never going to be a mainstream phenomenon. A decade ago, 250 00:12:42,280 --> 00:12:45,560 Speaker 1: when we started working on rise arrest and said innovation 251 00:12:45,600 --> 00:12:47,000 Speaker 1: is gonna happen all of the country, not just in 252 00:12:47,080 --> 00:12:49,559 Speaker 1: Silicon Valley. Most people thought it was kind of laughable. 253 00:12:49,600 --> 00:12:52,559 Speaker 1: They didn't think that was really likely to happen. No, 254 00:12:53,120 --> 00:12:55,800 Speaker 1: thankfully some of those views are are changing. But I 255 00:12:55,800 --> 00:12:58,680 Speaker 1: think picking those challenges that that really, I think, have 256 00:12:58,760 --> 00:13:02,080 Speaker 1: a positive impact on in the world and even though 257 00:13:02,120 --> 00:13:05,520 Speaker 1: they are hard and in most cases, maybe in all cases, 258 00:13:05,559 --> 00:13:09,560 Speaker 1: take ten, twenty years to achieve your your your goal. Uh. 259 00:13:09,720 --> 00:13:12,600 Speaker 1: Those are the you know, the battles I like fighting, 260 00:13:13,160 --> 00:13:17,680 Speaker 1: really quite quite intriguing. So let's talk about revolution. What 261 00:13:17,920 --> 00:13:20,600 Speaker 1: is it? How did it begin? When did it start? Well, 262 00:13:20,640 --> 00:13:23,280 Speaker 1: began a few years after I stepped down as CEO 263 00:13:23,240 --> 00:13:25,320 Speaker 1: of a well and let's try. I figure out what 264 00:13:25,360 --> 00:13:27,839 Speaker 1: my next act was going to be and rather than 265 00:13:27,920 --> 00:13:32,280 Speaker 1: start a company again, I thought I'd start an investment 266 00:13:32,320 --> 00:13:36,400 Speaker 1: firm that could back the next generation of of of entrepreneurs. 267 00:13:37,080 --> 00:13:40,760 Speaker 1: Initially was started in two thousand five and it was 268 00:13:40,800 --> 00:13:44,240 Speaker 1: called revolution, but it was just my capital. UH, at 269 00:13:44,240 --> 00:13:46,440 Speaker 1: littlewer a decade ago we decided to open up to 270 00:13:46,480 --> 00:13:50,400 Speaker 1: outside capital. So we have institutional investors across the platform. 271 00:13:50,480 --> 00:13:53,559 Speaker 1: Now we have, you know, kind of three basic groups. 272 00:13:54,000 --> 00:13:56,920 Speaker 1: One is revolution growth, which is our later stage, you 273 00:13:56,960 --> 00:14:01,199 Speaker 1: know fund. We also have revolution ventures and more recently, 274 00:14:01,240 --> 00:14:03,320 Speaker 1: about five years ago, we launched the rise of the 275 00:14:03,320 --> 00:14:05,840 Speaker 1: rest seed funds. So now we're able to back entrepreneurs 276 00:14:05,880 --> 00:14:08,320 Speaker 1: at every stage of their journey, whether it's really just 277 00:14:08,400 --> 00:14:10,360 Speaker 1: a really early stage where they just need to see 278 00:14:10,440 --> 00:14:13,440 Speaker 1: the seed funding, whether it's the next phase where they're 279 00:14:13,440 --> 00:14:15,920 Speaker 1: starting to grow in the adventure funding, or if they're 280 00:14:16,240 --> 00:14:19,400 Speaker 1: really starting to scale Um and need you need growth funding. 281 00:14:19,400 --> 00:14:21,400 Speaker 1: That's really what revolutions about. And the other two things 282 00:14:21,400 --> 00:14:24,120 Speaker 1: that make I think, interesting versus maybe other firms in 283 00:14:24,120 --> 00:14:26,800 Speaker 1: the country, and we talked about a little bit earlier, 284 00:14:26,840 --> 00:14:29,360 Speaker 1: but because we're based in Washington D C and because 285 00:14:29,400 --> 00:14:32,920 Speaker 1: we've been working on policy issues for nearly four decades 286 00:14:33,240 --> 00:14:35,880 Speaker 1: and we think the next wave of innovation policy is 287 00:14:35,880 --> 00:14:38,800 Speaker 1: going to be front and center and in Revolution we're 288 00:14:38,800 --> 00:14:40,840 Speaker 1: trying to position as the leading investment firm in the 289 00:14:40,840 --> 00:14:44,080 Speaker 1: country that's focused on on on policy. And the second 290 00:14:44,160 --> 00:14:47,760 Speaker 1: is I think we've been unusually focused on place. With 291 00:14:47,800 --> 00:14:49,920 Speaker 1: the rise of the rest. We've now made two investments 292 00:14:49,960 --> 00:14:52,320 Speaker 1: a hundred different cities. We've done these bus tours all 293 00:14:52,360 --> 00:14:54,840 Speaker 1: across the country and even the reason I wrote the 294 00:14:54,840 --> 00:14:57,600 Speaker 1: book on rise the rest is there's remarkable things happening 295 00:14:57,640 --> 00:15:00,560 Speaker 1: all of their country, remarkable new companies being built, cities 296 00:15:00,600 --> 00:15:04,120 Speaker 1: being renewed and revitalized, but most people aren't paying attention 297 00:15:04,160 --> 00:15:06,240 Speaker 1: to it and I really wanted to tell those stories. 298 00:15:06,240 --> 00:15:09,520 Speaker 1: And that's been a growing focus of revolution to as 299 00:15:09,600 --> 00:15:13,000 Speaker 1: investment firm with outside investors at the seed, venture and 300 00:15:13,080 --> 00:15:17,080 Speaker 1: growth stage, but with particular focus on policy and on place. 301 00:15:17,800 --> 00:15:19,640 Speaker 1: And we're going to talk about place in a moment. 302 00:15:19,680 --> 00:15:23,000 Speaker 1: But just to put this in a little context, revolution 303 00:15:23,040 --> 00:15:27,080 Speaker 1: has already had some big successes. Sweet Greens obviously a 304 00:15:27,120 --> 00:15:31,200 Speaker 1: big hit. Draft kings another one. Uh. Do those date 305 00:15:31,240 --> 00:15:33,480 Speaker 1: back to when it was a family office or was 306 00:15:33,560 --> 00:15:37,280 Speaker 1: that seed or venture type investment? Those? Those are both 307 00:15:37,320 --> 00:15:40,320 Speaker 1: growth stage investments. So we were the first, first institutional 308 00:15:40,360 --> 00:15:43,520 Speaker 1: investors in in uh, in sweet green, probably seven or 309 00:15:43,520 --> 00:15:46,800 Speaker 1: eight years ago. UH, draft kings probably five or six 310 00:15:46,880 --> 00:15:49,760 Speaker 1: years ago. Also clear that you know the biometric company 311 00:15:50,200 --> 00:15:55,720 Speaker 1: a lot of the recently or recently company in Chicago 312 00:15:55,760 --> 00:15:58,560 Speaker 1: called tempests as used, has got a big data precision 313 00:15:58,560 --> 00:16:01,320 Speaker 1: medicine to help people who are diagnosed with cancer. So 314 00:16:01,400 --> 00:16:04,120 Speaker 1: your DC base, which has to give you a slightly 315 00:16:04,160 --> 00:16:07,600 Speaker 1: different perspective from the folks in Silicon Valley. Before we 316 00:16:07,600 --> 00:16:11,400 Speaker 1: start talking about the rest of the country, what advantages 317 00:16:11,480 --> 00:16:14,600 Speaker 1: do you find being at the heart of the policy 318 00:16:14,640 --> 00:16:17,880 Speaker 1: making apparatus in the United States? Well, our office, the 319 00:16:17,880 --> 00:16:19,720 Speaker 1: Revolution Office, is a few blocks from the White House, 320 00:16:19,760 --> 00:16:23,000 Speaker 1: not too far from the Capitol, and just having lived 321 00:16:23,000 --> 00:16:24,800 Speaker 1: there now for a few decades and having a number 322 00:16:24,800 --> 00:16:27,280 Speaker 1: of people involved in the firm who have been steeped 323 00:16:27,280 --> 00:16:30,280 Speaker 1: in in policy work for government. One of the CO 324 00:16:30,400 --> 00:16:33,720 Speaker 1: founders of Revolution Fifteen years ago as Ron Klain, who 325 00:16:33,760 --> 00:16:37,440 Speaker 1: is now President Biden's chief of staff, John Delaney, joined us. 326 00:16:37,440 --> 00:16:40,080 Speaker 1: Some more recently started two companies went public. That was 327 00:16:40,120 --> 00:16:42,400 Speaker 1: in Congress and ran for president. So we've got some 328 00:16:42,440 --> 00:16:46,000 Speaker 1: people that really understand policy and we've got a location 329 00:16:46,000 --> 00:16:48,920 Speaker 1: that I think is interesting and, as I said, if 330 00:16:48,920 --> 00:16:51,160 Speaker 1: you think about the way I look at the Internet 331 00:16:51,320 --> 00:16:54,280 Speaker 1: is the first wave was getting over online. We talked 332 00:16:54,280 --> 00:16:56,880 Speaker 1: about those early days of a well, went from an 333 00:16:56,920 --> 00:16:59,520 Speaker 1: idea that nobody cared about this suddenly everybody needed to 334 00:16:59,520 --> 00:17:01,680 Speaker 1: be connect and you had to, you know, build those 335 00:17:01,680 --> 00:17:04,600 Speaker 1: on ramps, build all those servers out, build all that infrastructure, 336 00:17:04,640 --> 00:17:07,480 Speaker 1: and that was the first twenty years or so. The 337 00:17:07,600 --> 00:17:10,280 Speaker 1: last twenty years has really been the second wave, which 338 00:17:10,280 --> 00:17:12,440 Speaker 1: has been about building on top of the Internet, building 339 00:17:12,480 --> 00:17:16,000 Speaker 1: APPs and software and services on top of the Internet, facebook, Google, 340 00:17:16,560 --> 00:17:19,479 Speaker 1: things like that. The third wave is when the Internet 341 00:17:19,520 --> 00:17:21,800 Speaker 1: meets the real world and that means you're starting to 342 00:17:21,840 --> 00:17:24,399 Speaker 1: deal with some of the most important aspects of our lives. 343 00:17:24,400 --> 00:17:26,160 Speaker 1: How do we stay healthy? What do we eat? How 344 00:17:26,160 --> 00:17:28,400 Speaker 1: do we learn? How do we invest? How do we 345 00:17:28,520 --> 00:17:31,560 Speaker 1: move around in terms of transportation? And what's interesting about 346 00:17:31,600 --> 00:17:34,800 Speaker 1: those businesses, uh, is they tend to be regulated, you know, 347 00:17:34,960 --> 00:17:37,600 Speaker 1: because they're so important there there tends to be public 348 00:17:37,640 --> 00:17:42,120 Speaker 1: policy focus on on those. So innovators need to understand 349 00:17:42,200 --> 00:17:45,120 Speaker 1: it's a little bit different as in this third wave, uh, 350 00:17:45,160 --> 00:17:48,320 Speaker 1: and that understanding the policy framework, both in terms of 351 00:17:48,320 --> 00:17:51,120 Speaker 1: the go to market strategy and also what policies could 352 00:17:51,160 --> 00:17:53,960 Speaker 1: get changed. The opened up, open up new opportunities. That 353 00:17:54,320 --> 00:17:57,680 Speaker 1: when some of the health care legislation passed more in 354 00:17:57,720 --> 00:18:00,720 Speaker 1: a decade ago, that opened up things like to care advantage. 355 00:18:00,720 --> 00:18:04,040 Speaker 1: That created an enormous investment opportunities. More recently, just the summer, 356 00:18:04,119 --> 00:18:07,320 Speaker 1: there was legislation, including around climates it's going to create 357 00:18:07,400 --> 00:18:10,600 Speaker 1: enormous opportunities to invest in that, in that in that sector. 358 00:18:10,680 --> 00:18:12,960 Speaker 1: We saw one of our companies, draft kings, that we 359 00:18:13,000 --> 00:18:15,720 Speaker 1: talked about earlier. There was a change actually Supreme Court 360 00:18:15,800 --> 00:18:18,960 Speaker 1: ruling that allowed states to make different rules around, you know, 361 00:18:19,119 --> 00:18:22,320 Speaker 1: essentially betting. That opened up a big opportunity and actually 362 00:18:22,359 --> 00:18:26,159 Speaker 1: accelerated the growth of draftings. So policy can can you know, 363 00:18:26,240 --> 00:18:28,919 Speaker 1: kind of be a strategic advantage for companies in this 364 00:18:29,040 --> 00:18:31,919 Speaker 1: third wave and being in Washington, D C and having 365 00:18:31,960 --> 00:18:34,800 Speaker 1: that kind of connectivity, I think that perspective in a 366 00:18:34,800 --> 00:18:37,760 Speaker 1: lot of relationships with people on both sides of the aisle, 367 00:18:38,160 --> 00:18:42,040 Speaker 1: I think gives revolution a unique platform and we're able 368 00:18:42,080 --> 00:18:44,920 Speaker 1: to help the entrepreneurs Rey back in ways that other 369 00:18:45,000 --> 00:18:48,320 Speaker 1: venture capitalists typically can. So you grow up in Hawaii, 370 00:18:48,640 --> 00:18:53,000 Speaker 1: you end up relocating to D c. What led to 371 00:18:53,040 --> 00:18:58,280 Speaker 1: the idea? Hey, there's a massive amount of innovation and 372 00:18:58,440 --> 00:19:02,959 Speaker 1: Energy and entrepreneurship in between New York and Silicon Valley. 373 00:19:03,119 --> 00:19:05,280 Speaker 1: How did you find your way to saying let's figure 374 00:19:05,280 --> 00:19:08,000 Speaker 1: out a way to reach these folks, get them funded 375 00:19:08,160 --> 00:19:10,680 Speaker 1: and give them a boost to launch their businesses? Well, 376 00:19:10,680 --> 00:19:12,679 Speaker 1: the triggering event. I was asked a little over a 377 00:19:12,720 --> 00:19:16,280 Speaker 1: decade ago to share a White House initiative called Startup 378 00:19:16,280 --> 00:19:20,160 Speaker 1: America Partnership. That was, you know, launched with President Obama, 379 00:19:20,560 --> 00:19:22,600 Speaker 1: and that got me traveling around the country because it 380 00:19:22,640 --> 00:19:25,679 Speaker 1: was really trying to promote regional entrepreneurship. This is at 381 00:19:25,720 --> 00:19:27,560 Speaker 1: the time when unemployment was high and there was a 382 00:19:27,560 --> 00:19:29,560 Speaker 1: recognition that one way to deal with that was to 383 00:19:29,640 --> 00:19:31,640 Speaker 1: create new jobs and one way to create new jobs 384 00:19:31,840 --> 00:19:34,719 Speaker 1: to create new companies, uh, and so that led to 385 00:19:34,800 --> 00:19:38,240 Speaker 1: a focus on regional entrepreneurship and as I traveled more 386 00:19:38,240 --> 00:19:41,440 Speaker 1: and looked at more of the data, I found it surprising, 387 00:19:41,480 --> 00:19:45,080 Speaker 1: almost shocking, uh, that even though these new companies are 388 00:19:45,080 --> 00:19:48,280 Speaker 1: the major job Creator, uh, most of the venture capital 389 00:19:48,320 --> 00:19:50,800 Speaker 1: to back these new companies is just in a few places. 390 00:19:51,040 --> 00:19:54,119 Speaker 1: You know, of venture capital over the last decade has 391 00:19:54,119 --> 00:19:58,159 Speaker 1: gone to just three states, California, New York and Massachusetts. 392 00:19:58,160 --> 00:20:01,280 Speaker 1: So it even worse than three eight. It's really three cities, 393 00:20:01,480 --> 00:20:04,680 Speaker 1: San Francisco, New York and Bulls. Yeah, within those states 394 00:20:04,720 --> 00:20:07,760 Speaker 1: it's overwhelmingly three cities, as you said. So as a result, 395 00:20:08,280 --> 00:20:09,919 Speaker 1: a lot of people in different parts of the country 396 00:20:09,920 --> 00:20:11,479 Speaker 1: it felt like they have to be there. If they 397 00:20:11,520 --> 00:20:13,920 Speaker 1: if they're not there, they really don't have a shot 398 00:20:13,960 --> 00:20:16,560 Speaker 1: at raising the capital they need to start our scale 399 00:20:16,560 --> 00:20:18,880 Speaker 1: a company. That's led to sort of a brain drain 400 00:20:18,960 --> 00:20:20,920 Speaker 1: and lots of parts of the country people kind of 401 00:20:21,000 --> 00:20:23,160 Speaker 1: leave and and and how do you slow that brain drain? 402 00:20:23,240 --> 00:20:25,399 Speaker 1: How do you create a boomerang of people returning? How 403 00:20:25,440 --> 00:20:28,639 Speaker 1: do you create more jobs in these communities all around 404 00:20:28,640 --> 00:20:30,879 Speaker 1: the country so there is more hope and around the 405 00:20:30,960 --> 00:20:33,960 Speaker 1: you know, the future? And so that really led to 406 00:20:34,160 --> 00:20:37,680 Speaker 1: launching about eight years ago, rise the rest, which initially 407 00:20:37,680 --> 00:20:40,480 Speaker 1: started as bus tour we went to places like Detroit 408 00:20:40,560 --> 00:20:44,159 Speaker 1: and Pittsburgh and and then we went, you know, Minneapolis, Denver, 409 00:20:44,480 --> 00:20:46,920 Speaker 1: you know, kind of you know, forty four cities so far, 410 00:20:46,960 --> 00:20:49,840 Speaker 1: really all over the country to see firsthand what was 411 00:20:49,880 --> 00:20:52,080 Speaker 1: happening there. And we did this with a big red 412 00:20:52,119 --> 00:20:53,880 Speaker 1: bus that got a lot of attention and we had 413 00:20:53,880 --> 00:20:56,520 Speaker 1: pitch competitions. We invite in each city. We invited people 414 00:20:56,560 --> 00:20:59,119 Speaker 1: to join us, uh, and that gave us another, you know, 415 00:20:59,160 --> 00:21:01,000 Speaker 1: kind of Lens into what was happening. And then we 416 00:21:01,080 --> 00:21:03,720 Speaker 1: really doubled down about five years ago when we launched 417 00:21:03,760 --> 00:21:06,720 Speaker 1: the rise of the rest seat fund and we decided 418 00:21:06,760 --> 00:21:09,080 Speaker 1: to do things a little differently there rather than the 419 00:21:09,119 --> 00:21:11,439 Speaker 1: first few years it was just my capital. But we 420 00:21:11,440 --> 00:21:13,199 Speaker 1: decided to you know, kind of ask some of the 421 00:21:13,240 --> 00:21:16,840 Speaker 1: most prominent entrepreneurs and investors in the country to join 422 00:21:16,960 --> 00:21:19,199 Speaker 1: us as lps in this fund. And so we have 423 00:21:19,280 --> 00:21:23,159 Speaker 1: about thirty five people, entrepreneurs like Jeff bezos and Howard 424 00:21:23,200 --> 00:21:27,159 Speaker 1: Schultz and, uh Tory Birch and Sarah Blakeley and and 425 00:21:27,400 --> 00:21:31,040 Speaker 1: venture capitalists like John Dor and Jim Bryer, and private 426 00:21:31,080 --> 00:21:35,040 Speaker 1: equity investors like Henry Kravis and David Rubinstein, Hedge Fund 427 00:21:35,080 --> 00:21:36,919 Speaker 1: people like, you know, Ray Daly. A really an amazing 428 00:21:36,960 --> 00:21:40,480 Speaker 1: group of it's an amazing group of people. Are Honored 429 00:21:40,520 --> 00:21:42,719 Speaker 1: to have them as as our partners in this and 430 00:21:42,800 --> 00:21:45,399 Speaker 1: we set out to find these entrepreneurs and and we 431 00:21:45,440 --> 00:21:47,879 Speaker 1: said we're going to try to build a fund that 432 00:21:47,920 --> 00:21:50,720 Speaker 1: really can generate top tier returns, which is the best 433 00:21:50,720 --> 00:21:52,880 Speaker 1: way to drive more capital from the coast to other 434 00:21:52,920 --> 00:21:55,359 Speaker 1: parts of the country. And it's working. And the reason 435 00:21:55,400 --> 00:21:57,920 Speaker 1: to write the book, Uh, is to really tell those 436 00:21:57,960 --> 00:22:00,480 Speaker 1: stories and and really kind of put some, you know, 437 00:22:00,560 --> 00:22:02,760 Speaker 1: a spotlight on some of these cities that are showing 438 00:22:02,880 --> 00:22:06,000 Speaker 1: remarkable momentum and some of these entrepreneurs in those cities 439 00:22:06,000 --> 00:22:09,040 Speaker 1: that we call the sort of surprising places, that it's 440 00:22:09,040 --> 00:22:11,320 Speaker 1: not Selcon Valley, Not New York, and it's not Boston, 441 00:22:11,400 --> 00:22:14,280 Speaker 1: it's it's Richmond, Virginia, where a company like temperate pack 442 00:22:14,440 --> 00:22:18,160 Speaker 1: is for the innovative and sustainable packaging, or Chattanooga, where 443 00:22:18,160 --> 00:22:21,000 Speaker 1: a company freight waves is doing some interesting things. Interesting 444 00:22:21,000 --> 00:22:24,280 Speaker 1: where in the Bloomberg offices today for this they're building 445 00:22:24,320 --> 00:22:27,880 Speaker 1: essentially a Bloomberg data platform for the trucking and logistics industry, 446 00:22:27,920 --> 00:22:30,440 Speaker 1: because some of the biggest trucking companies are based in 447 00:22:30,440 --> 00:22:34,200 Speaker 1: in Chattanooga. Or Company in Indianapolis called one twenty water 448 00:22:34,280 --> 00:22:37,960 Speaker 1: that's focused on helping initially consumers, but then cities, you know, 449 00:22:38,080 --> 00:22:39,960 Speaker 1: kind of you test their water and make sure that 450 00:22:40,280 --> 00:22:42,239 Speaker 1: after the flat water crisis, there was a lot of 451 00:22:42,240 --> 00:22:45,680 Speaker 1: concern about that. Are In Baltimore, Maryland's company catalyte using 452 00:22:45,720 --> 00:22:50,399 Speaker 1: AI to identify undiscovered kind of talent that people have, 453 00:22:50,600 --> 00:22:52,879 Speaker 1: for for coding, and some of the people who have 454 00:22:52,960 --> 00:22:55,280 Speaker 1: gone through this this program end up making two or 455 00:22:55,280 --> 00:22:57,280 Speaker 1: three times more than they had before. I remember one 456 00:22:57,320 --> 00:22:59,800 Speaker 1: the UPS truck driver. Nobody when he was growing up 457 00:22:59,800 --> 00:23:02,000 Speaker 1: told him he could be a coder. He's kind of 458 00:23:02,040 --> 00:23:05,359 Speaker 1: like to determine they had a talented for coding until 459 00:23:05,359 --> 00:23:07,760 Speaker 1: he's making substantially more that he was making before. So 460 00:23:07,840 --> 00:23:10,520 Speaker 1: these are the kind of stories we're seeing all across 461 00:23:10,560 --> 00:23:13,280 Speaker 1: the country and cities that that would surprise you and 462 00:23:13,320 --> 00:23:15,159 Speaker 1: I think it's the reason to write the book and 463 00:23:15,240 --> 00:23:16,880 Speaker 1: I wanted to tell those stories. I think most people 464 00:23:16,920 --> 00:23:18,960 Speaker 1: reading the book will be surprised by the story. Is 465 00:23:18,960 --> 00:23:21,800 Speaker 1: surprised by the company, is surprised by the cities and 466 00:23:21,800 --> 00:23:25,240 Speaker 1: and have a have a slightly more optimistic view of 467 00:23:25,240 --> 00:23:27,560 Speaker 1: the future of America because of what's bubbling all across 468 00:23:27,600 --> 00:23:29,840 Speaker 1: the country. So so tell us a little bit about 469 00:23:29,920 --> 00:23:33,160 Speaker 1: what these bus tours are like. When this big red 470 00:23:33,280 --> 00:23:37,680 Speaker 1: coach rolls into a small town and says, okay, we're 471 00:23:37,680 --> 00:23:42,880 Speaker 1: gonna hold a bake off for the best startup technology, 472 00:23:43,000 --> 00:23:46,320 Speaker 1: whatever it happens to be. What is that like and 473 00:23:46,720 --> 00:23:49,480 Speaker 1: what is the reaction of the locals like to this? 474 00:23:50,000 --> 00:23:52,119 Speaker 1: It's very positive. I think for them it's a signal 475 00:23:52,200 --> 00:23:55,119 Speaker 1: that somebody's paying attention to signal that things are, you know, 476 00:23:55,320 --> 00:23:58,520 Speaker 1: turning up in terms of new new possibilities. And we 477 00:23:58,640 --> 00:24:01,639 Speaker 1: used the bus. It's probably uh, you know, kind of 478 00:24:01,680 --> 00:24:05,639 Speaker 1: a visual a giant get people's attention and you know, 479 00:24:05,680 --> 00:24:07,720 Speaker 1: you remember a few years ago, sixty minutes the story. 480 00:24:07,920 --> 00:24:09,879 Speaker 1: I think it probably that the optics of that, you know, 481 00:24:09,880 --> 00:24:13,760 Speaker 1: sort of the Americana Road trip bus dynamics, is part 482 00:24:13,760 --> 00:24:16,119 Speaker 1: of it, but there's a more strategic reason for it. 483 00:24:16,160 --> 00:24:20,760 Speaker 1: So we actually use the bus as a rolling convening platform. 484 00:24:20,840 --> 00:24:23,760 Speaker 1: We bring people together from different parts of the you know, 485 00:24:23,760 --> 00:24:26,080 Speaker 1: the community. The mayor often joined us, or a senator 486 00:24:26,200 --> 00:24:28,960 Speaker 1: or the university president or a CEOS of big companies, 487 00:24:29,000 --> 00:24:32,040 Speaker 1: as well as obviously the entrepreneurs starting these these these 488 00:24:32,080 --> 00:24:34,959 Speaker 1: these new companies, and we're trying to connect people and 489 00:24:35,000 --> 00:24:37,879 Speaker 1: create more of a collaborative startup community there. And we 490 00:24:37,920 --> 00:24:41,080 Speaker 1: also invite people from other places to join us, either 491 00:24:41,119 --> 00:24:44,639 Speaker 1: investors from the coast or people from larger companies to 492 00:24:44,840 --> 00:24:47,520 Speaker 1: join us on the bus so they can see firsthand 493 00:24:47,640 --> 00:24:50,520 Speaker 1: what's what's what's happening, as well as obviously inviting media, 494 00:24:50,560 --> 00:24:53,440 Speaker 1: about local media and national media and as our way 495 00:24:53,480 --> 00:24:57,560 Speaker 1: to learn what's happening, identify promising companies to to invest in, 496 00:24:57,640 --> 00:25:00,119 Speaker 1: but also to try to showcase the best of what 497 00:25:00,200 --> 00:25:02,320 Speaker 1: each of these cities and in the process if you 498 00:25:02,400 --> 00:25:05,119 Speaker 1: take a step back showcase the best of America, not 499 00:25:05,200 --> 00:25:07,480 Speaker 1: just what's happening on the coast, but what's happening all 500 00:25:07,520 --> 00:25:10,080 Speaker 1: across the country. I would think that with all the 501 00:25:10,119 --> 00:25:14,440 Speaker 1: focus on New York, Boston and especially Silicon Valley, there 502 00:25:14,440 --> 00:25:19,359 Speaker 1: are some enormous inefficiencies and lots of great ideas and 503 00:25:19,880 --> 00:25:24,560 Speaker 1: either underfunded or undervalued. Startups in the in the heartlands, 504 00:25:24,960 --> 00:25:27,800 Speaker 1: are are being, or at least were being, neglected until 505 00:25:27,880 --> 00:25:30,160 Speaker 1: you shine a line on them. Yeah, and it's as 506 00:25:30,160 --> 00:25:31,560 Speaker 1: we still a lot of work to do, but it's 507 00:25:31,600 --> 00:25:33,560 Speaker 1: starting to change. I think the last few years people 508 00:25:33,560 --> 00:25:37,359 Speaker 1: have seen some real significant successes. Even a company I 509 00:25:37,400 --> 00:25:39,600 Speaker 1: write about in the book called a male chimp based 510 00:25:39,600 --> 00:25:42,520 Speaker 1: in Atlanta had acquired for twelve billion dollars. It was 511 00:25:42,520 --> 00:25:45,000 Speaker 1: actually bootstrapped. There was no venture capital, in part because 512 00:25:45,000 --> 00:25:47,119 Speaker 1: they weren't able to raise venture capital and they started 513 00:25:47,160 --> 00:25:49,680 Speaker 1: more in a decade ago in Atlantic and most people 514 00:25:49,680 --> 00:25:53,119 Speaker 1: weren't really investing in cities like uh like Atlanta. As 515 00:25:53,160 --> 00:25:56,320 Speaker 1: investors seem more and more of those success stories in 516 00:25:56,359 --> 00:25:59,040 Speaker 1: places all across the country. It's opened their eyes to 517 00:25:59,119 --> 00:26:02,160 Speaker 1: the potential and their starting to pay more attention. They're 518 00:26:02,200 --> 00:26:05,240 Speaker 1: still overwhelmingly investing in their own backyards. If they're sitting 519 00:26:05,280 --> 00:26:07,960 Speaker 1: in San Francisco, most of their investments are in Silicon Valley. 520 00:26:07,960 --> 00:26:10,120 Speaker 1: But at least they're a little more open minded about 521 00:26:10,119 --> 00:26:12,560 Speaker 1: it and, frankly, the pandemic has been helpful. On that show, 522 00:26:12,760 --> 00:26:14,760 Speaker 1: you don't want to, you know, make light of all 523 00:26:14,760 --> 00:26:19,200 Speaker 1: the tragedies of the pandemic. overlining force people to think 524 00:26:19,280 --> 00:26:22,440 Speaker 1: outside of listen. If you're stuck at home and you're 525 00:26:22,440 --> 00:26:24,600 Speaker 1: talking to an entrepreneur, it doesn't matter if they're down 526 00:26:24,640 --> 00:26:27,120 Speaker 1: the street or three thousand miles. Exactly that, if you're 527 00:26:27,119 --> 00:26:29,440 Speaker 1: doing a pitch meeting on zoom, what differences that make 528 00:26:29,480 --> 00:26:31,760 Speaker 1: where they are. That was that was helpful. The other 529 00:26:31,760 --> 00:26:33,440 Speaker 1: thing that's been helpful is for a lot of people 530 00:26:33,720 --> 00:26:36,879 Speaker 1: the pandemic was sort of a opportunity to take a 531 00:26:36,920 --> 00:26:39,840 Speaker 1: step back and reassess their their lives, and some people 532 00:26:39,880 --> 00:26:42,359 Speaker 1: have decided to shift how they live and how they 533 00:26:42,359 --> 00:26:44,119 Speaker 1: work and where they live and where they work, and 534 00:26:44,119 --> 00:26:46,480 Speaker 1: the whole idea of more remote work, hybrid work has 535 00:26:46,520 --> 00:26:50,320 Speaker 1: become a real phenomenon and that is helping these rise 536 00:26:50,359 --> 00:26:52,560 Speaker 1: of the rest cities that we've seen. Some people who 537 00:26:52,560 --> 00:26:54,320 Speaker 1: grew up in different parts of the country or went 538 00:26:54,400 --> 00:26:56,360 Speaker 1: to you know college and different parts of the country 539 00:26:56,920 --> 00:27:01,200 Speaker 1: and had gone to the coast, typically typically Silicon Valley uh, decided, 540 00:27:01,280 --> 00:27:04,040 Speaker 1: doing the pandemic, to move back and once they're there, 541 00:27:04,400 --> 00:27:06,919 Speaker 1: even though they usually start working, continuing to work for 542 00:27:06,920 --> 00:27:09,280 Speaker 1: the company they had been working for, just doing it remotely, 543 00:27:09,520 --> 00:27:12,840 Speaker 1: they realized there's remarkable things happening in the startup communities 544 00:27:12,840 --> 00:27:14,720 Speaker 1: in those cities and some of them are now starting 545 00:27:14,720 --> 00:27:16,720 Speaker 1: to leave those big companies to join some of those 546 00:27:16,720 --> 00:27:19,000 Speaker 1: small companies, some of them starting to think about starting 547 00:27:19,000 --> 00:27:21,359 Speaker 1: their own companies in these communities. So I think the 548 00:27:21,359 --> 00:27:24,080 Speaker 1: tipping point for the rise of the rest really was 549 00:27:24,400 --> 00:27:27,560 Speaker 1: with the pandemic and we'll see an acceleration over the 550 00:27:27,560 --> 00:27:29,320 Speaker 1: next decade. And it goes back to what I said earlier. 551 00:27:29,320 --> 00:27:32,520 Speaker 1: But for me, these these these these these journeys, these 552 00:27:32,600 --> 00:27:34,880 Speaker 1: these battles I'm fighting, whether it be the early days 553 00:27:34,920 --> 00:27:38,000 Speaker 1: of the internet or, more recently, leveling the playing field 554 00:27:38,040 --> 00:27:41,280 Speaker 1: with with rides. The rest have a certain, you know, 555 00:27:41,359 --> 00:27:44,000 Speaker 1: dynamic to them, which is the first ten years it's 556 00:27:44,000 --> 00:27:47,200 Speaker 1: a slog uh, and the second ten years things really 557 00:27:47,280 --> 00:27:49,399 Speaker 1: kind of take off. We saw that with the Internet 558 00:27:49,400 --> 00:27:52,440 Speaker 1: we're beginning to see glimmers of that with the rise 559 00:27:52,480 --> 00:27:54,919 Speaker 1: of the rest. So hopefully this book will help accelerate 560 00:27:54,960 --> 00:27:57,439 Speaker 1: the whole movement. So so let's talk about some of 561 00:27:57,480 --> 00:28:01,920 Speaker 1: the cities that you've gone to. After New York, Boston 562 00:28:02,359 --> 00:28:06,960 Speaker 1: and Silicon Valley, Um, what is the next largest tier? 563 00:28:07,119 --> 00:28:10,080 Speaker 1: What do you think is the fastest growing cities and 564 00:28:10,200 --> 00:28:14,080 Speaker 1: what cities surprised you the most? For whatever reason, it 565 00:28:14,160 --> 00:28:17,359 Speaker 1: happened to a car? That's a tough question for two reasons. 566 00:28:17,359 --> 00:28:19,600 Speaker 1: One is, uh, it's not just a few cities, it's 567 00:28:19,600 --> 00:28:22,159 Speaker 1: a few dozens right, so it's hard. It's hard to 568 00:28:22,160 --> 00:28:23,600 Speaker 1: just pick a few and the second it's a little 569 00:28:23,600 --> 00:28:27,640 Speaker 1: bit like asking apparent who their favorite child is. You know, 570 00:28:31,440 --> 00:28:33,640 Speaker 1: that's what you say, but we know you have a favorite. 571 00:28:33,680 --> 00:28:36,840 Speaker 1: But so let me ask the easier question. What surprised 572 00:28:36,880 --> 00:28:39,480 Speaker 1: you the most when you were out and about in 573 00:28:39,520 --> 00:28:42,880 Speaker 1: a hundred different cities? Well, each of the cities there's 574 00:28:42,920 --> 00:28:44,960 Speaker 1: something they're similar and some things they are different. What's 575 00:28:45,000 --> 00:28:48,120 Speaker 1: what's similar is what's happened is in the last particularly decade, 576 00:28:49,040 --> 00:28:53,800 Speaker 1: more attention got focused on startups. Even even the government leaders, 577 00:28:53,800 --> 00:28:58,280 Speaker 1: mayors and governors for decades economic development was basically getting 578 00:28:58,280 --> 00:29:00,600 Speaker 1: a big company to move their headquarters, big company to 579 00:29:00,680 --> 00:29:03,600 Speaker 1: open a factory, and the recognition more recently was no, 580 00:29:03,760 --> 00:29:06,400 Speaker 1: the real way to do that in a sustainable, efficient 581 00:29:06,400 --> 00:29:08,960 Speaker 1: way is actually to launch new companies, some of which 582 00:29:09,000 --> 00:29:11,920 Speaker 1: would fail, because that's the nature, but some of which 583 00:29:11,960 --> 00:29:15,080 Speaker 1: would succeed and be maybe the fortune companies of tomorrow, 584 00:29:15,120 --> 00:29:17,800 Speaker 1: and then kind of creating more of that collaboration in 585 00:29:17,840 --> 00:29:20,840 Speaker 1: the in the community. More that sense of possibility in 586 00:29:21,120 --> 00:29:24,760 Speaker 1: the community has been a really a key ingredient that 587 00:29:24,840 --> 00:29:28,920 Speaker 1: we've been watching building over this over the past decade. 588 00:29:29,200 --> 00:29:31,320 Speaker 1: But the other aspect I think is interesting is there 589 00:29:31,320 --> 00:29:34,840 Speaker 1: are some cities that really it's not just a lower 590 00:29:34,880 --> 00:29:37,640 Speaker 1: cost of living or lower lower cost of operations, which 591 00:29:37,680 --> 00:29:40,880 Speaker 1: is which is a motivator for some, or family reasons 592 00:29:40,960 --> 00:29:43,160 Speaker 1: or lifestyle reasons to be in a particular city, which 593 00:29:43,200 --> 00:29:45,080 Speaker 1: is a motivator or some. There are more and more 594 00:29:45,120 --> 00:29:47,360 Speaker 1: cities where there really is an advantage to be in 595 00:29:47,360 --> 00:29:50,080 Speaker 1: those cities versus being in, say, San Francisco or New York. 596 00:29:50,120 --> 00:29:52,800 Speaker 1: Take could take healthcare, but the healthcare really is going 597 00:29:52,800 --> 00:29:56,200 Speaker 1: to require systems level change really revolutionize how we think 598 00:29:56,240 --> 00:30:00,960 Speaker 1: about our our health that's going to require partnership. Some 599 00:30:01,040 --> 00:30:03,920 Speaker 1: of the key partners you need in in the healthcare 600 00:30:03,960 --> 00:30:07,200 Speaker 1: space or big hospitals like Mayo Clinic in Minnesota or 601 00:30:07,200 --> 00:30:10,479 Speaker 1: Cleveland Clinic in Ohio or Johns Hopkins in Maryland or 602 00:30:10,560 --> 00:30:13,480 Speaker 1: M D Anderson and Texas. Being close to them probably 603 00:30:13,520 --> 00:30:17,479 Speaker 1: increases your odds of establishing partnerships with them. So that 604 00:30:17,600 --> 00:30:20,760 Speaker 1: dynamic is critical. Another example is in a company we 605 00:30:20,880 --> 00:30:25,520 Speaker 1: backed in in northwest Arkansas, Fayetteville, called Acre trader. Basically 606 00:30:25,520 --> 00:30:29,320 Speaker 1: it's a platform to invest in farmland and the founder, Cardamola, 607 00:30:29,360 --> 00:30:31,960 Speaker 1: actually was in San Francisco and said if I'M gonna 608 00:30:32,000 --> 00:30:34,640 Speaker 1: start a company that's going to basically be this platform 609 00:30:34,680 --> 00:30:36,880 Speaker 1: for farmland, I should be where the farmers are. That's 610 00:30:36,920 --> 00:30:38,680 Speaker 1: a good way to build, you know, kind of trust 611 00:30:38,720 --> 00:30:40,840 Speaker 1: and and and scale up the platform, and he's done 612 00:30:40,920 --> 00:30:44,800 Speaker 1: very well raise a large round or scaling quite rapidly. 613 00:30:44,920 --> 00:30:47,360 Speaker 1: I am familiar with Acre trader and had no idea 614 00:30:47,360 --> 00:30:48,960 Speaker 1: that you guys had anything to do with that and 615 00:30:49,000 --> 00:30:51,920 Speaker 1: it's a wonderful rise of the restory because again, even 616 00:30:51,920 --> 00:30:55,000 Speaker 1: though Carter Malla I had left that area to go 617 00:30:55,040 --> 00:30:58,320 Speaker 1: to San Francisco, he returned and some of that. I'm 618 00:30:58,360 --> 00:31:00,360 Speaker 1: sure it was for family reasons, but most of it 619 00:31:00,440 --> 00:31:03,840 Speaker 1: was for strategic reasons. Acre trader is more successful in 620 00:31:04,240 --> 00:31:06,560 Speaker 1: in Arkansas than if it had been in, you know state, 621 00:31:06,600 --> 00:31:08,960 Speaker 1: in California or New York, and we're seeing that happen 622 00:31:09,040 --> 00:31:11,479 Speaker 1: and more and more of these these cities. But in 623 00:31:11,560 --> 00:31:13,480 Speaker 1: terms of the one city I would point out because 624 00:31:13,480 --> 00:31:16,200 Speaker 1: it's an amazing story, it's even I lead off the 625 00:31:16,200 --> 00:31:18,720 Speaker 1: book with it, is a story of Detroit. You know, 626 00:31:18,760 --> 00:31:21,040 Speaker 1: people don't really focused on this, but if you think 627 00:31:21,080 --> 00:31:25,080 Speaker 1: about Detroit a hundred years ago, essentially was Silicon Valley. 628 00:31:25,360 --> 00:31:27,960 Speaker 1: It was the most innovative city in the country when 629 00:31:28,000 --> 00:31:30,720 Speaker 1: the automobile was the hot technology of the day. A 630 00:31:30,800 --> 00:31:34,560 Speaker 1: hundred years ago silicon valley was fruit orchards. They weren't 631 00:31:34,560 --> 00:31:38,320 Speaker 1: growing startups, they weren't growing fruit. Apple is called apple 632 00:31:38,360 --> 00:31:41,120 Speaker 1: for a reason. And so, yeah, Detroit was rocking and 633 00:31:41,240 --> 00:31:44,000 Speaker 1: rolling that the car revolution. For a couple of decades. 634 00:31:44,040 --> 00:31:45,920 Speaker 1: People wanted to be part of that. Moved to Detroit. 635 00:31:46,080 --> 00:31:48,640 Speaker 1: Houses were being built, schools were being built. You know, 636 00:31:49,080 --> 00:31:51,440 Speaker 1: was really rocking and rolling. And then, you know, about 637 00:31:51,440 --> 00:31:55,080 Speaker 1: fifty years ago things turned and they lost sixty of 638 00:31:55,160 --> 00:31:59,360 Speaker 1: their population and the year before we rolled in with 639 00:31:59,360 --> 00:32:01,719 Speaker 1: our rise of the rest bus, the city of Detroit 640 00:32:01,760 --> 00:32:07,360 Speaker 1: went bankrupt. What had been Silicon Valley went bankrupt. That's 641 00:32:07,360 --> 00:32:11,200 Speaker 1: the bad news. The good news is a vibrant startup culture, 642 00:32:11,240 --> 00:32:14,560 Speaker 1: particularly in the downtown Detroit area, and we backed companies 643 00:32:14,640 --> 00:32:18,280 Speaker 1: like Shinola and stock acts and others that are in Detroit, 644 00:32:18,640 --> 00:32:21,840 Speaker 1: with the backing of a great entrepreneur and Gilbert, a 645 00:32:21,960 --> 00:32:25,760 Speaker 1: strong mayor. Foundations like Krusky all worked together to say 646 00:32:25,800 --> 00:32:28,000 Speaker 1: we need to rebuild Detroit and we're gonna do it 647 00:32:28,080 --> 00:32:30,880 Speaker 1: on the back of backing new companies startups in Detroit. 648 00:32:31,160 --> 00:32:33,320 Speaker 1: So now Detroit's, you know, kind of back on on 649 00:32:33,360 --> 00:32:35,800 Speaker 1: the on the rise and doing some phenomenal things. The 650 00:32:35,800 --> 00:32:38,040 Speaker 1: other city we visited on that first rise rest bus 651 00:32:38,040 --> 00:32:42,320 Speaker 1: tour was Pittsburgh. I think about Pittsburgh. It really powered 652 00:32:42,360 --> 00:32:44,960 Speaker 1: the industrial revolution. It was the steel capital and and 653 00:32:45,160 --> 00:32:47,280 Speaker 1: a hundred years ago it was rock and rolling. And then, 654 00:32:47,640 --> 00:32:49,360 Speaker 1: you know, I lost some of that, you know, kind 655 00:32:49,400 --> 00:32:52,440 Speaker 1: of a lead, but reinvented itself in the last couple 656 00:32:52,480 --> 00:32:54,960 Speaker 1: of decades. Have a great university there, Carnegie Mellon, and 657 00:32:55,280 --> 00:32:58,320 Speaker 1: big focused on robotics, for example, and as a result 658 00:32:58,360 --> 00:33:01,160 Speaker 1: of backing new companies since up, like due lingo, the 659 00:33:01,520 --> 00:33:05,560 Speaker 1: language APP started spun out of Carnegie Mellon, started in Pittsburgh. 660 00:33:05,600 --> 00:33:08,840 Speaker 1: It's seeing the arise again. But this is this is 661 00:33:08,880 --> 00:33:11,200 Speaker 1: really the story of dozens of cities. I think if 662 00:33:11,200 --> 00:33:13,920 Speaker 1: you fast forward ten or twenty years, it's more, as 663 00:33:13,960 --> 00:33:17,000 Speaker 1: I said earlier, more optimistic view of America that will 664 00:33:17,000 --> 00:33:20,520 Speaker 1: have a more inclusive innovation economy. Won't just be a 665 00:33:20,520 --> 00:33:22,520 Speaker 1: few people in a few places. It will be a 666 00:33:22,600 --> 00:33:26,120 Speaker 1: much more broader based UH innovation economy which I think 667 00:33:26,120 --> 00:33:28,120 Speaker 1: will result in the create some more jobs and more 668 00:33:28,160 --> 00:33:30,959 Speaker 1: parts of the country, which might even create more of 669 00:33:30,720 --> 00:33:33,560 Speaker 1: a of an opportunity to knit together a very divided 670 00:33:33,600 --> 00:33:36,680 Speaker 1: country that's obviously divided in many respects, but one way 671 00:33:37,120 --> 00:33:39,440 Speaker 1: is sort of a opportunity gap. There's some people doing 672 00:33:39,440 --> 00:33:42,280 Speaker 1: really well, a lot of people struggling and feeling left behind. 673 00:33:43,080 --> 00:33:45,000 Speaker 1: How do we create some of the jobs of the future, 674 00:33:45,040 --> 00:33:47,480 Speaker 1: even some of the industries of the future in these 675 00:33:47,520 --> 00:33:50,840 Speaker 1: in these cities all across America? You raise an interesting 676 00:33:50,960 --> 00:33:56,080 Speaker 1: policy question. Whenever I see, you know, a groundbreaking where 677 00:33:56,120 --> 00:34:01,040 Speaker 1: some giant company comes in with all these tax abatements, 678 00:34:01,080 --> 00:34:04,200 Speaker 1: we sort with Fox con in Wisconsin turned out to 679 00:34:04,200 --> 00:34:07,800 Speaker 1: be a bust. We see it every time some billionaires 680 00:34:08,040 --> 00:34:12,760 Speaker 1: stadium gets paid for by taxpayers. The math never seems 681 00:34:12,800 --> 00:34:16,160 Speaker 1: to work out. But it sounds like what you're saying 682 00:34:16,160 --> 00:34:19,080 Speaker 1: here is if we stop trying to do these giant 683 00:34:19,280 --> 00:34:21,600 Speaker 1: let's bring a big company and to save the factory 684 00:34:21,640 --> 00:34:24,560 Speaker 1: town and if that company leaves the town is toast. 685 00:34:25,080 --> 00:34:28,880 Speaker 1: Let's create an entire different model of startups, small companies, 686 00:34:29,239 --> 00:34:33,240 Speaker 1: build that whole ecosystem. That has a much better chance 687 00:34:33,320 --> 00:34:38,200 Speaker 1: of success for that region and success for the country. 688 00:34:38,239 --> 00:34:41,840 Speaker 1: The interesting thing about this economic development battle where different 689 00:34:41,840 --> 00:34:44,319 Speaker 1: states are fighting with each other over over the same, 690 00:34:44,360 --> 00:34:48,279 Speaker 1: you know, existing companies. It's sort of zero sum for America. Yeah, 691 00:34:48,600 --> 00:34:50,799 Speaker 1: they're just throwing money at it to get you leave 692 00:34:50,920 --> 00:34:53,360 Speaker 1: here to go there. It doesn't really help the country. 693 00:34:53,440 --> 00:34:57,279 Speaker 1: And so, and you say, often those investments do not 694 00:34:57,360 --> 00:35:00,359 Speaker 1: pay off for those particular cities or those particular states. 695 00:35:00,400 --> 00:35:03,360 Speaker 1: So it's way better to focus on the new companies. 696 00:35:03,400 --> 00:35:05,719 Speaker 1: And we saw an interesting dynamic a few years ago 697 00:35:05,760 --> 00:35:10,319 Speaker 1: when Amazon launched its second headquarters, you know, and they 698 00:35:10,360 --> 00:35:13,000 Speaker 1: basically say create a second headquarters and create tens of 699 00:35:13,040 --> 00:35:16,200 Speaker 1: thousands jobs in that second headquarters, uh and, you know, 700 00:35:16,360 --> 00:35:18,200 Speaker 1: let us know if you're interested in this. You know, 701 00:35:18,239 --> 00:35:21,920 Speaker 1: coming and two D thirty different cities all pitched, uh, 702 00:35:21,960 --> 00:35:24,640 Speaker 1: to to get Amazon to, you know, to come. Ultimately 703 00:35:24,640 --> 00:35:27,040 Speaker 1: decided actually in northern Virginia, not too far from where 704 00:35:27,040 --> 00:35:30,160 Speaker 1: we started. All is where they decided to kind of 705 00:35:30,200 --> 00:35:33,480 Speaker 1: plant their flag. But then, you know, the Nice thing 706 00:35:33,480 --> 00:35:36,360 Speaker 1: about it was those two or thirty cities had to 707 00:35:36,400 --> 00:35:39,759 Speaker 1: come together, had to make a joint pitch, had to 708 00:35:39,760 --> 00:35:42,279 Speaker 1: figure out what their strengths were, to really highlight what 709 00:35:42,360 --> 00:35:44,319 Speaker 1: some of the weaknesses were that they could they could 710 00:35:44,360 --> 00:35:47,600 Speaker 1: focus on. And where we're seeing is sort of a 711 00:35:47,600 --> 00:35:50,160 Speaker 1: continuing effect to that that many of these cities, you know, 712 00:35:50,360 --> 00:35:53,480 Speaker 1: are now focused on these new companies, focused on backing, 713 00:35:53,560 --> 00:35:55,960 Speaker 1: you know, the startups, saying we don't really want to 714 00:35:55,960 --> 00:35:58,520 Speaker 1: do that fighting again to get Amazon. How do we 715 00:35:58,560 --> 00:36:01,960 Speaker 1: create the next Amazon in our communities? That's resulting in 716 00:36:02,000 --> 00:36:05,560 Speaker 1: a pivot to focus on new companies, on startups, in 717 00:36:06,080 --> 00:36:09,040 Speaker 1: cities all across America. So let's let's dig a little 718 00:36:09,080 --> 00:36:13,680 Speaker 1: deeper into revolution. First is, is there a favorite sector 719 00:36:13,840 --> 00:36:17,600 Speaker 1: or industry or size that revolution likes? or it doesn't 720 00:36:17,600 --> 00:36:19,640 Speaker 1: matter if it's an interesting idea with a chance for 721 00:36:19,760 --> 00:36:22,839 Speaker 1: success it interests you. But they said there's two key 722 00:36:22,920 --> 00:36:25,399 Speaker 1: planks of our strategy. One is policy in the other 723 00:36:25,520 --> 00:36:27,640 Speaker 1: is place. So on the policy side we tend to 724 00:36:27,680 --> 00:36:30,279 Speaker 1: focus on the industries where there is a policy, you 725 00:36:30,480 --> 00:36:34,160 Speaker 1: kind of component. So I mentioned a health tech company 726 00:36:34,200 --> 00:36:36,840 Speaker 1: called the tempest. I mentioned temper pack which in the 727 00:36:36,880 --> 00:36:41,480 Speaker 1: sustainable kind of packaging business, clear the biometric company. Those 728 00:36:41,480 --> 00:36:45,120 Speaker 1: are their policy issues and usually partner issues associate with that. 729 00:36:45,200 --> 00:36:48,640 Speaker 1: But agricultural culture would fit into that, sports tech would 730 00:36:48,680 --> 00:36:51,360 Speaker 1: would fit into that. So there there are many sectors 731 00:36:51,360 --> 00:36:53,319 Speaker 1: that fit into that, but they generally most of the 732 00:36:53,320 --> 00:36:56,760 Speaker 1: theme that generally drives most of our efforts are around 733 00:36:57,280 --> 00:36:59,120 Speaker 1: policy and then, of course, with our ride the rest 734 00:36:59,120 --> 00:37:01,920 Speaker 1: seed fund, that is very place based and in sector agnostic. 735 00:37:02,360 --> 00:37:05,080 Speaker 1: And one of the interesting things we learned late last 736 00:37:05,120 --> 00:37:07,719 Speaker 1: year we did a joint report with pitchbook and there 737 00:37:07,719 --> 00:37:09,799 Speaker 1: are two data points that I thought were striking and 738 00:37:09,800 --> 00:37:11,680 Speaker 1: even surprising to me, I've been working on this for 739 00:37:11,680 --> 00:37:15,080 Speaker 1: a decade. The first was in the last decade four 740 00:37:15,680 --> 00:37:20,600 Speaker 1: hundred new regional venture firms were started up and they're 741 00:37:20,640 --> 00:37:24,480 Speaker 1: typically focusing on that early seed and kind of venture stage. 742 00:37:24,719 --> 00:37:26,760 Speaker 1: And the other data point was there's a six hundred 743 00:37:26,840 --> 00:37:29,480 Speaker 1: percent increase in venture capital going to these rides of 744 00:37:29,560 --> 00:37:31,480 Speaker 1: rest cities. So the things we've been talking about the 745 00:37:31,520 --> 00:37:34,480 Speaker 1: decade we're starting to see progress. New Venture firms starting, 746 00:37:34,480 --> 00:37:37,960 Speaker 1: more capital flowing, but we think things will really accelerating 747 00:37:38,160 --> 00:37:39,960 Speaker 1: in in in the next decade. We're just trying to 748 00:37:39,960 --> 00:37:43,160 Speaker 1: make sure revolution we're positioned to really be the leader 749 00:37:43,520 --> 00:37:47,680 Speaker 1: around place and use even the book that to to 750 00:37:48,280 --> 00:37:51,640 Speaker 1: make the case for why other investors should be investing 751 00:37:51,680 --> 00:37:54,160 Speaker 1: in these other cities, not just in the usual places 752 00:37:54,200 --> 00:37:56,520 Speaker 1: like San Francisco and New York, in Boston. So so 753 00:37:56,640 --> 00:37:59,560 Speaker 1: revolution brings a lot more to the table than just 754 00:37:59,680 --> 00:38:01,560 Speaker 1: cap at all. There's a lot of value air coming 755 00:38:01,719 --> 00:38:05,120 Speaker 1: absolutely no. At the beginning we make an investment, that's 756 00:38:05,160 --> 00:38:07,880 Speaker 1: the start of the process of working with a company, 757 00:38:07,880 --> 00:38:11,120 Speaker 1: whether it be introducing them to new partnerships or helping 758 00:38:11,160 --> 00:38:14,120 Speaker 1: them recruit people their management team or there their boards are, 759 00:38:14,160 --> 00:38:17,880 Speaker 1: helping them navigate sometimes complicated policy issues. There's lots of 760 00:38:17,880 --> 00:38:20,640 Speaker 1: things we try to do to really help these companies scale, 761 00:38:20,640 --> 00:38:24,280 Speaker 1: help them achieve their their full potential. Quite quite intriguing. 762 00:38:24,760 --> 00:38:28,520 Speaker 1: Coming up we continue our conversation with Steve Case, chair 763 00:38:28,600 --> 00:38:32,640 Speaker 1: and CEO of revolution, discussing his new book, the rise 764 00:38:32,680 --> 00:38:36,600 Speaker 1: of the rest, how entrepreneurs in surprising places are building 765 00:38:36,680 --> 00:38:40,520 Speaker 1: the new American dream. I'm Barry ridholts. You're listening to 766 00:38:40,600 --> 00:38:44,680 Speaker 1: masters in business on Bloomberg radio. I'm Barry rihults. You're 767 00:38:44,760 --> 00:38:48,600 Speaker 1: listening to masters in business on Bloomberg radio. My extra 768 00:38:48,640 --> 00:38:51,440 Speaker 1: special guest this week is Steve Case. He is the 769 00:38:51,560 --> 00:38:55,319 Speaker 1: chairman and CEO of revolution, as well as one of 770 00:38:55,320 --> 00:38:58,960 Speaker 1: the three co founders of America Online. He is also 771 00:38:59,120 --> 00:39:02,520 Speaker 1: chair of the case foundation and the Smithsonian. He is 772 00:39:02,560 --> 00:39:05,800 Speaker 1: the author of a new book, the rise of the rest, 773 00:39:05,880 --> 00:39:10,520 Speaker 1: how entrepreneurs and surprising places are building the new American dream. 774 00:39:10,719 --> 00:39:14,000 Speaker 1: That is out this week. So so let's talk about 775 00:39:14,000 --> 00:39:16,680 Speaker 1: the book. What, first of all, what motivates you? As 776 00:39:16,680 --> 00:39:18,479 Speaker 1: someone who's written a book, I know how much work 777 00:39:18,520 --> 00:39:21,879 Speaker 1: goes into it. What motivated you to sit down and say, yeah, 778 00:39:21,920 --> 00:39:24,759 Speaker 1: I'M gonna put all this down on paper? I thought 779 00:39:24,800 --> 00:39:26,400 Speaker 1: I had to write the book. I spent most of 780 00:39:26,440 --> 00:39:30,880 Speaker 1: the decade traveling the country, meeting entreprenurs, visiting dozens of cities, 781 00:39:30,880 --> 00:39:35,359 Speaker 1: seeing remarkable things happening that were most people are unaware of, 782 00:39:35,840 --> 00:39:38,399 Speaker 1: and so I just felt like I have a choice. 783 00:39:38,400 --> 00:39:39,839 Speaker 1: I had to write this book. I had to tell 784 00:39:39,880 --> 00:39:42,719 Speaker 1: these stories there there. I had to profile some of 785 00:39:42,760 --> 00:39:45,799 Speaker 1: these entrepreneurs, talk about what they're doing with with their companies, 786 00:39:46,480 --> 00:39:49,080 Speaker 1: showcase some of these rising cities in terms of what 787 00:39:49,120 --> 00:39:51,280 Speaker 1: they're doing to really create, you know, kind of a 788 00:39:51,320 --> 00:39:54,719 Speaker 1: renew their communities, create more opportunity, more jobs, things like that. 789 00:39:55,400 --> 00:39:57,440 Speaker 1: Uh So, what? It was not really a choice. I 790 00:39:57,480 --> 00:40:01,600 Speaker 1: just felt compelled to write this this book. What was 791 00:40:01,640 --> 00:40:05,359 Speaker 1: the response from the various entrepreneurs? When you say to somebody, Hey, 792 00:40:05,400 --> 00:40:07,879 Speaker 1: I'm going to feature you as a chapter in this 793 00:40:07,920 --> 00:40:11,520 Speaker 1: new book? Are People excited about it? Of course, of course. 794 00:40:11,760 --> 00:40:14,560 Speaker 1: I think they, particularly entrepreneurs in these rise of the 795 00:40:14,600 --> 00:40:18,640 Speaker 1: rest cities, tend to feel uh, lonely, a little left out. 796 00:40:18,680 --> 00:40:21,720 Speaker 1: They don't have the at least. Yeah, we're working on this, obviously, 797 00:40:21,719 --> 00:40:24,040 Speaker 1: but don't have quite the attention that you have if 798 00:40:24,080 --> 00:40:27,319 Speaker 1: you're an entrepreneur place like Silicon Valley. Uh So, even 799 00:40:27,360 --> 00:40:30,360 Speaker 1: when we've rolled into town with our rise of rest bus, 800 00:40:30,160 --> 00:40:33,560 Speaker 1: you just have pitch competitions where entrepreneurs can be on stage. 801 00:40:33,600 --> 00:40:36,120 Speaker 1: That allows them to talk up what they're doing and 802 00:40:36,120 --> 00:40:38,799 Speaker 1: get people in their communities to better understand where they're 803 00:40:38,800 --> 00:40:41,760 Speaker 1: doing and believe in what they're they're doing. And similarly 804 00:40:41,800 --> 00:40:44,399 Speaker 1: with the with the book. Everybody we talked to with 805 00:40:44,560 --> 00:40:47,200 Speaker 1: it was was honored, obviously, to being included the book 806 00:40:47,200 --> 00:40:49,799 Speaker 1: and appreciative of the fact that we're really championing their 807 00:40:50,200 --> 00:40:52,160 Speaker 1: stories trying to do what we can to help them 808 00:40:52,200 --> 00:40:55,400 Speaker 1: scale into being kind of significant companies that can change 809 00:40:55,400 --> 00:40:58,160 Speaker 1: the world, create significant value for the investor, to create, 810 00:40:58,200 --> 00:41:01,480 Speaker 1: you know, hopefully, thousands of jobs and the process kind 811 00:41:01,480 --> 00:41:05,080 Speaker 1: of lift up their particular communities and strengthened America in 812 00:41:05,200 --> 00:41:08,799 Speaker 1: terms of having, you know, kind of a more inclusive economy. 813 00:41:09,040 --> 00:41:12,319 Speaker 1: To tell us about these pitch competitions. How Long Does 814 00:41:12,360 --> 00:41:15,560 Speaker 1: each entrepreneur get? What are they allowed to bring? What 815 00:41:15,640 --> 00:41:17,920 Speaker 1: are some of those uh pitches like? How how do 816 00:41:17,960 --> 00:41:21,000 Speaker 1: you how do they vary from one to one? Well, 817 00:41:21,040 --> 00:41:24,360 Speaker 1: when we decided to do a road trip, we planned 818 00:41:24,360 --> 00:41:26,320 Speaker 1: this for more than six months in advance, so we 819 00:41:26,360 --> 00:41:28,440 Speaker 1: have an advanced team that's going to the cities. We 820 00:41:28,680 --> 00:41:31,160 Speaker 1: try to understand what who should we visit in the cities? 821 00:41:31,200 --> 00:41:33,719 Speaker 1: What startup to do, like a bus startup crawl with with. 822 00:41:34,040 --> 00:41:36,759 Speaker 1: You know, we might have a lunch and and uh, 823 00:41:36,800 --> 00:41:39,840 Speaker 1: you know, pitch invent a lot of different things to 824 00:41:39,880 --> 00:41:41,919 Speaker 1: really kind of get people together. But for the pitch 825 00:41:41,960 --> 00:41:45,279 Speaker 1: competition specifically, we basically say we're coming to tower do 826 00:41:45,360 --> 00:41:47,640 Speaker 1: this pitch competition and we generally get about a hundred 827 00:41:47,640 --> 00:41:50,040 Speaker 1: people applying to pitch and then our team sorts through 828 00:41:50,080 --> 00:41:51,719 Speaker 1: that and picks the best eight or ten to be 829 00:41:51,920 --> 00:41:54,440 Speaker 1: on stage. Then we actually hire a pitch coach to 830 00:41:54,480 --> 00:41:56,520 Speaker 1: help them work on their pitch. We really want to 831 00:41:56,560 --> 00:41:58,400 Speaker 1: help them, where they win or not, we're trying to 832 00:41:58,440 --> 00:42:01,880 Speaker 1: help them be positioned for, uh, for a success. So 833 00:42:01,920 --> 00:42:04,439 Speaker 1: they each get you three minutes or so to pitch 834 00:42:04,480 --> 00:42:07,839 Speaker 1: and then a couple of minutes of questions following that, uh, 835 00:42:07,880 --> 00:42:11,680 Speaker 1: and then we, we judges, spend some time reviewing which 836 00:42:11,719 --> 00:42:14,480 Speaker 1: one should win and and then we make a decision 837 00:42:14,480 --> 00:42:16,319 Speaker 1: of which one we're going to invest in. Sometimes we 838 00:42:16,320 --> 00:42:18,400 Speaker 1: actually invest in more than one because we're just struck 839 00:42:18,440 --> 00:42:20,520 Speaker 1: by the, you know, the power of some of those uh, 840 00:42:20,600 --> 00:42:24,200 Speaker 1: some of those ideas. So so, just a quick digression. 841 00:42:24,239 --> 00:42:27,920 Speaker 1: So we have a VC fund that just focuses on 842 00:42:28,120 --> 00:42:31,719 Speaker 1: financial technology because of of my day job, and we 843 00:42:31,840 --> 00:42:34,520 Speaker 1: just had this giant conference out in, of all places, 844 00:42:34,600 --> 00:42:38,000 Speaker 1: Huntington Beach in so cal, and one of the things 845 00:42:38,080 --> 00:42:42,560 Speaker 1: we did was an exact that exact thing, a pitch competition. 846 00:42:43,040 --> 00:42:46,040 Speaker 1: It was five minutes per entrepreneur and I think we 847 00:42:46,160 --> 00:42:49,040 Speaker 1: ended up going with ten people out of well over 848 00:42:49,080 --> 00:42:52,800 Speaker 1: a hundred applications. But the idea of a pitch coach, 849 00:42:53,239 --> 00:42:56,040 Speaker 1: because some of the pitches were fantastic, some were a 850 00:42:56,080 --> 00:42:58,439 Speaker 1: little rough around the edges. The idea of a pitch 851 00:42:58,480 --> 00:43:05,600 Speaker 1: coaches is really um intriguing. How did people respond to that? Um, 852 00:43:05,640 --> 00:43:08,080 Speaker 1: someone coming in and saying, Hey, you only have three 853 00:43:08,160 --> 00:43:10,400 Speaker 1: or four minutes, here's what you need to focus on. 854 00:43:10,560 --> 00:43:13,680 Speaker 1: It was super helpful and obviously these companies have been 855 00:43:14,320 --> 00:43:17,160 Speaker 1: done pitches before, but they are never done, in most cases, 856 00:43:17,160 --> 00:43:19,439 Speaker 1: of pitch at this at this state kind a level, 857 00:43:19,440 --> 00:43:21,920 Speaker 1: with this kind of audience. And so getting it actually 858 00:43:21,920 --> 00:43:23,600 Speaker 1: came to as we had a partnership with Google. They 859 00:43:23,640 --> 00:43:26,239 Speaker 1: haven't it should have called Google for startups, and we 860 00:43:26,239 --> 00:43:28,080 Speaker 1: were doing some joint things with them and they were 861 00:43:28,120 --> 00:43:30,799 Speaker 1: doing a pitch competition where they invited some of the 862 00:43:30,920 --> 00:43:33,640 Speaker 1: entrepreneurs that we helped select from all around the country 863 00:43:33,640 --> 00:43:36,440 Speaker 1: to come pitch at Google headquarters in Silicon Valley and 864 00:43:36,440 --> 00:43:38,960 Speaker 1: as part of that they used a pitch coach. So 865 00:43:39,000 --> 00:43:41,879 Speaker 1: we then embraced that idea and ever since we've had 866 00:43:41,880 --> 00:43:43,600 Speaker 1: a pitch coach as well. But no, it's it's a 867 00:43:43,920 --> 00:43:47,440 Speaker 1: can really result in, uh, the entrepreneurs telling a much 868 00:43:47,520 --> 00:43:51,320 Speaker 1: more compelling story and and it benefits them long after 869 00:43:51,360 --> 00:43:55,000 Speaker 1: we leave town. They have a Crisper, more compelling pitch 870 00:43:55,080 --> 00:43:58,080 Speaker 1: for the next time they're meeting with a prospective investor 871 00:43:58,200 --> 00:44:01,560 Speaker 1: or customer or partner. Data is wonderful, but sometimes it's 872 00:44:01,560 --> 00:44:04,560 Speaker 1: all about the narrative, isn't it exactly. No, storytelling is 873 00:44:04,600 --> 00:44:06,120 Speaker 1: a lot of what this is about. You have to 874 00:44:06,200 --> 00:44:09,920 Speaker 1: captivate people, UH, everybody. Everybody has to be selling. If 875 00:44:09,960 --> 00:44:12,120 Speaker 1: you're trying to hire somebody, you're selling. If you're trying 876 00:44:12,120 --> 00:44:15,399 Speaker 1: to get investors, you're you're selling, if you're if you're 877 00:44:15,400 --> 00:44:17,640 Speaker 1: trying to get media attention, you're selling, if you're obviously 878 00:44:17,640 --> 00:44:20,280 Speaker 1: you're trying to get customers, you're you're, you're, you're selling. 879 00:44:20,320 --> 00:44:23,399 Speaker 1: And everybody can be coached to be better at what 880 00:44:23,440 --> 00:44:27,000 Speaker 1: they're what they're trying to you know, to sell really interesting. 881 00:44:27,000 --> 00:44:29,680 Speaker 1: You know you you said something earlier that I let 882 00:44:29,760 --> 00:44:31,680 Speaker 1: sneak by, but I got to bring it back up. 883 00:44:32,560 --> 00:44:36,799 Speaker 1: The jobs act, passed under the Obama Administration, Um, and 884 00:44:36,840 --> 00:44:40,440 Speaker 1: the investing opportunities act. Not only were you involved in 885 00:44:41,360 --> 00:44:44,680 Speaker 1: helping to create that policy, you were instrumental in getting 886 00:44:44,680 --> 00:44:47,719 Speaker 1: that past. So first, tell us a little bit about 887 00:44:47,760 --> 00:44:51,680 Speaker 1: that experience. In second, what has that meant for startups 888 00:44:52,080 --> 00:44:55,480 Speaker 1: and funding of new companies and entrepreneurs? Well, the job 889 00:44:55,560 --> 00:44:59,560 Speaker 1: at passed just about a decade ago and broad bypartisans support. 890 00:44:59,600 --> 00:45:02,880 Speaker 1: It's called jump starting our business startups act and it 891 00:45:02,960 --> 00:45:05,960 Speaker 1: was basically updating the rules of securities laws in places 892 00:45:06,000 --> 00:45:08,560 Speaker 1: thineteen thirty three. So this one just pre Internet. This 893 00:45:08,600 --> 00:45:10,560 Speaker 1: is pre television and it needed a little bit of 894 00:45:10,560 --> 00:45:14,279 Speaker 1: an update and it allowed things like crowdfunding. It had 895 00:45:14,320 --> 00:45:16,760 Speaker 1: created an on ramp for young companies to go public. 896 00:45:16,760 --> 00:45:19,719 Speaker 1: We're called emerging growth companies. That field more I P 897 00:45:19,800 --> 00:45:22,640 Speaker 1: O s. It was really about giving more entrepreneurs more 898 00:45:22,680 --> 00:45:25,080 Speaker 1: access to capital. would be the early stage or the 899 00:45:25,160 --> 00:45:27,680 Speaker 1: later stage, with the with the goal of having more 900 00:45:27,719 --> 00:45:30,160 Speaker 1: companies start and scale and create more jobs. And so 901 00:45:30,239 --> 00:45:32,080 Speaker 1: that's really why it was called the you know, the 902 00:45:32,600 --> 00:45:34,719 Speaker 1: the jobs act, and and it was. It was great. 903 00:45:34,760 --> 00:45:38,720 Speaker 1: I worked on the President Obama's jobs and competitives council 904 00:45:38,800 --> 00:45:42,200 Speaker 1: and there was a little subcommittee focused particularly on entrepreneurship. 905 00:45:42,239 --> 00:45:45,960 Speaker 1: I work with Cheryl Sandberg facebook and John Dor the 906 00:45:46,040 --> 00:45:49,239 Speaker 1: venture capitalist, Clara Perkins to help fund, you know, figure 907 00:45:49,280 --> 00:45:51,240 Speaker 1: out what some of the policies would be that would 908 00:45:51,280 --> 00:45:54,520 Speaker 1: create a more fertile startup environment all across the country, 909 00:45:54,520 --> 00:45:56,560 Speaker 1: and the jobs act was part of that. So so, 910 00:45:56,600 --> 00:45:59,640 Speaker 1: what do you think the direct result of that legislation, 911 00:45:59,680 --> 00:46:03,000 Speaker 1: in that policy update has been in the decade you've 912 00:46:03,040 --> 00:46:05,880 Speaker 1: been traveling around the country and looking at at startups? 913 00:46:05,880 --> 00:46:07,719 Speaker 1: I think crowdfunding has been helpful to a number of 914 00:46:07,719 --> 00:46:10,839 Speaker 1: companies to otherwise wouldn't have had access to capitol, would 915 00:46:10,840 --> 00:46:12,799 Speaker 1: never have gotten started up. And they're more companies have 916 00:46:12,840 --> 00:46:15,360 Speaker 1: gone public in the last decade because of the jobs 917 00:46:15,400 --> 00:46:18,680 Speaker 1: act making a little easier for these emergent companies to 918 00:46:18,840 --> 00:46:22,720 Speaker 1: go public. I keep finding these when I'm searching for something. 919 00:46:23,040 --> 00:46:26,279 Speaker 1: I keep finding these funny little products like Oh, that 920 00:46:26,320 --> 00:46:29,040 Speaker 1: looks really interesting. I've never seen anything like that. You 921 00:46:29,080 --> 00:46:34,680 Speaker 1: Click through and and as often as not it's a crowdfunding. Hey, 922 00:46:35,040 --> 00:46:37,640 Speaker 1: give us enough money to help get this product launched 923 00:46:37,640 --> 00:46:41,560 Speaker 1: and you get a product, but not necessarily any equity ownership. 924 00:46:42,280 --> 00:46:46,360 Speaker 1: Is that? Is that the future for very specialized, niche 925 00:46:46,360 --> 00:46:50,320 Speaker 1: products as opposed to broad company startups? Yeah, the crowdfunding 926 00:46:50,360 --> 00:46:53,880 Speaker 1: really started with some platforms like kickstarter, where exactly what 927 00:46:53,880 --> 00:46:56,680 Speaker 1: you're saying that if you people offer a particular product, 928 00:46:56,800 --> 00:46:59,400 Speaker 1: usually before it would even be manufactured, and get some 929 00:46:59,480 --> 00:47:01,200 Speaker 1: pre or or is, it will allow them to have 930 00:47:01,320 --> 00:47:04,120 Speaker 1: the capital then go build out, you know, the product, 931 00:47:04,160 --> 00:47:06,200 Speaker 1: and that worked for a number of companies. Some of 932 00:47:06,200 --> 00:47:09,360 Speaker 1: those products then end up getting launched more broadly or 933 00:47:09,520 --> 00:47:12,680 Speaker 1: they raising capital more broadly. But there also has been 934 00:47:12,680 --> 00:47:15,879 Speaker 1: more and more companies that are using crowdfunding to raise 935 00:47:16,080 --> 00:47:18,880 Speaker 1: equity capital to help fund the companies, as we can 936 00:47:18,960 --> 00:47:22,319 Speaker 1: do both, not just the product but you're actually a 937 00:47:22,440 --> 00:47:27,600 Speaker 1: small investor in the startup. Exactly, really, really quite Um, 938 00:47:27,680 --> 00:47:32,160 Speaker 1: quite fascinating. So let's circle back to two thousand. The 939 00:47:32,200 --> 00:47:35,160 Speaker 1: time ornery O l deal goes through, you set up 940 00:47:35,160 --> 00:47:38,120 Speaker 1: a family office and from that you really start to 941 00:47:38,200 --> 00:47:44,560 Speaker 1: expand into a lot of different public service and philanthropy. Um, 942 00:47:45,360 --> 00:47:49,440 Speaker 1: you mentioned the National Advisory Council on Innovation and entrepreneurship, 943 00:47:49,719 --> 00:47:53,480 Speaker 1: as well as President Obama's council on jobs and competitiveness. 944 00:47:53,880 --> 00:47:56,480 Speaker 1: Tell us a little bit about when you go from 945 00:47:56,560 --> 00:47:59,919 Speaker 1: a nimble startup to a big merger to the govern 946 00:48:00,000 --> 00:48:03,359 Speaker 1: them in. What's the trade off? How difficult is it 947 00:48:03,440 --> 00:48:06,200 Speaker 1: to move the ball down the field? Well, I think 948 00:48:06,200 --> 00:48:08,480 Speaker 1: it's it's difficult for sure, which is why I do 949 00:48:08,520 --> 00:48:11,640 Speaker 1: it only on the side. It's sort of my my 950 00:48:11,640 --> 00:48:14,640 Speaker 1: my moonlighting, my side hustle. My main event is focused 951 00:48:14,680 --> 00:48:18,600 Speaker 1: on investment companies through revolution, but I do think it's 952 00:48:18,640 --> 00:48:21,799 Speaker 1: important to make sure that, you know, I do at 953 00:48:21,880 --> 00:48:24,319 Speaker 1: least everything I can to make sure America remains the 954 00:48:24,320 --> 00:48:27,200 Speaker 1: most innovative entreprene nation. I do think it's important to 955 00:48:27,239 --> 00:48:29,839 Speaker 1: try to, as we discussed around rise to rest, create 956 00:48:29,880 --> 00:48:33,440 Speaker 1: a more inclusive innovation economy that brings along more people 957 00:48:33,480 --> 00:48:36,239 Speaker 1: and more places. And while most of that and most 958 00:48:36,280 --> 00:48:39,000 Speaker 1: of my time has spent on working with those entrepreneurs 959 00:48:39,040 --> 00:48:42,360 Speaker 1: as an investor and mentor, I do think it's important 960 00:48:42,400 --> 00:48:44,320 Speaker 1: to make sure we have the right policy framework in 961 00:48:44,400 --> 00:48:47,759 Speaker 1: place that creates as much opportunity as possible for as 962 00:48:47,840 --> 00:48:51,040 Speaker 1: many entrepreneurs as possible, as many places in America as 963 00:48:51,120 --> 00:48:53,920 Speaker 1: as possible. So that led to the work around the 964 00:48:53,960 --> 00:48:58,760 Speaker 1: National Advisory Council on Innovation Entrepreneurship more than a decade ago. Actually. 965 00:48:59,080 --> 00:49:03,080 Speaker 1: The current Secretary Commerce, Gina Romando, we started it, recently 966 00:49:03,120 --> 00:49:05,560 Speaker 1: asked me to Co share it again, so I agreed 967 00:49:05,600 --> 00:49:08,680 Speaker 1: to do that. And we're focused particularly on identifying some 968 00:49:08,719 --> 00:49:11,000 Speaker 1: of the industries of the future where America really needs 969 00:49:11,040 --> 00:49:14,360 Speaker 1: to lead and supporting this effort around regional hubs, including 970 00:49:14,400 --> 00:49:17,359 Speaker 1: some of the legislation that passed recently a fund more 971 00:49:17,680 --> 00:49:20,120 Speaker 1: regional innovation around the around the country, so it is 972 00:49:20,120 --> 00:49:23,200 Speaker 1: a less silicon valley. What's the big change in the 973 00:49:23,280 --> 00:49:26,160 Speaker 1: decade that has ensued from the last time you were 974 00:49:26,640 --> 00:49:30,640 Speaker 1: involved with this policy or this panel to today? Well, 975 00:49:30,760 --> 00:49:32,880 Speaker 1: some of the initial focus was on this access to 976 00:49:32,920 --> 00:49:35,080 Speaker 1: capital side, which led to things like the you know, 977 00:49:35,120 --> 00:49:36,839 Speaker 1: the job Jag. Now it's, I think, a little more 978 00:49:36,840 --> 00:49:40,200 Speaker 1: of focused on access to opportunity, which ties in with 979 00:49:40,239 --> 00:49:42,200 Speaker 1: the work we're doing around rise the rest. How do 980 00:49:42,239 --> 00:49:44,319 Speaker 1: you create a uh, you know, level the playing fields 981 00:49:44,320 --> 00:49:46,319 Speaker 1: so everybody, everywhere has a shot the American dream? That's 982 00:49:46,360 --> 00:49:49,440 Speaker 1: really what it's all about and and trying to create 983 00:49:49,480 --> 00:49:52,600 Speaker 1: more of that investment. Uh. It's also it's striking to me, 984 00:49:52,640 --> 00:49:54,520 Speaker 1: because I've been doing this now for a while. As 985 00:49:54,560 --> 00:49:57,400 Speaker 1: you think about that early days of the Internet, we 986 00:49:57,480 --> 00:50:00,359 Speaker 1: talked about a well being in northern Virginia outside Washing 987 00:50:00,440 --> 00:50:03,560 Speaker 1: d C. actually a number of the companies that were 988 00:50:03,560 --> 00:50:06,720 Speaker 1: pivotal in that first wave we're all across the country. 989 00:50:06,719 --> 00:50:09,640 Speaker 1: It was not so much about Silicon Valley. For example, 990 00:50:10,160 --> 00:50:13,760 Speaker 1: UH IBM S PC operations were in Boca Raton, Florida. 991 00:50:14,040 --> 00:50:16,279 Speaker 1: Hump to serve a major online service. Time was in 992 00:50:16,320 --> 00:50:22,280 Speaker 1: Columbus Ohio. Hayes, the Communications Modem Company, was in Atlanta, Georgia. SPRENT, 993 00:50:22,400 --> 00:50:26,840 Speaker 1: another communications company, was in Kansas City. Dell was in Austin. 994 00:50:27,160 --> 00:50:31,680 Speaker 1: Microsoft actually started Albuquerque before moving to to U to Seattle. 995 00:50:31,760 --> 00:50:35,680 Speaker 1: So that first wave of innovation the Internet was regionally distributed. 996 00:50:35,680 --> 00:50:37,720 Speaker 1: It was only the second way, when it became about 997 00:50:37,760 --> 00:50:40,920 Speaker 1: you know, software, that silicon valley rose to prominence. I 998 00:50:40,920 --> 00:50:43,200 Speaker 1: think in the third way we can redistribute again and 999 00:50:43,440 --> 00:50:45,640 Speaker 1: have innovation in different parts of the country and that's 1000 00:50:45,680 --> 00:50:48,760 Speaker 1: part of the focus of on on the on the policy. 1001 00:50:48,800 --> 00:50:50,319 Speaker 1: So I just do what I can to bring that 1002 00:50:50,480 --> 00:50:54,400 Speaker 1: Entrepreneurial Lens at Investor Lens Uh to the policy makers, 1003 00:50:54,440 --> 00:50:56,640 Speaker 1: doing it in a very kind of bipartisan you know 1004 00:50:56,719 --> 00:50:59,600 Speaker 1: kind of way, working with Republicans and Democrats, trying to 1005 00:50:59,600 --> 00:51:01,120 Speaker 1: figure out what is the right, you know, kind of 1006 00:51:01,160 --> 00:51:06,120 Speaker 1: policy going forward. But it's easier to do, you know, 1007 00:51:06,600 --> 00:51:08,360 Speaker 1: based on your question, you know it is challenging to 1008 00:51:08,400 --> 00:51:10,239 Speaker 1: deal with these things. Sometimes it does feel like you're 1009 00:51:10,239 --> 00:51:13,319 Speaker 1: trying to, you know, move a mountain, but doing it, 1010 00:51:13,400 --> 00:51:16,360 Speaker 1: you know, occasionally on the side would be is it 1011 00:51:16,400 --> 00:51:18,839 Speaker 1: works for me. I have great respect for the people 1012 00:51:18,880 --> 00:51:21,000 Speaker 1: who are willing to jump into it full time. I 1013 00:51:21,000 --> 00:51:23,840 Speaker 1: think that's not my thing. It's tough. You you mentioned 1014 00:51:23,880 --> 00:51:27,200 Speaker 1: the subcommittee on Entrepreneurship. Tell us a little bit about 1015 00:51:27,239 --> 00:51:30,080 Speaker 1: their work and what have they accomplished? Well, that was, 1016 00:51:30,160 --> 00:51:33,040 Speaker 1: I think, pivotal in terms of creating the framework and 1017 00:51:33,120 --> 00:51:36,279 Speaker 1: also the momentum around things like the jobs act. And 1018 00:51:36,320 --> 00:51:37,880 Speaker 1: the way we did that is we actually asked an 1019 00:51:37,880 --> 00:51:40,879 Speaker 1: outside consulting firm, it was a McKenzie uh to do 1020 00:51:41,000 --> 00:51:43,799 Speaker 1: look at all of the the ideas have been put 1021 00:51:43,800 --> 00:51:47,640 Speaker 1: on table, legislation that been introducing Congress, think tanks and 1022 00:51:47,640 --> 00:51:51,800 Speaker 1: others that would create a more entrepreneurial ecosystem all across, 1023 00:51:52,080 --> 00:51:53,960 Speaker 1: you know, the country and the number of things were 1024 00:51:54,000 --> 00:51:56,319 Speaker 1: identified and we just kind of whacked away working on 1025 00:51:56,760 --> 00:51:59,920 Speaker 1: identifying what the what, which policy would have the you know, 1026 00:52:00,000 --> 00:52:02,480 Speaker 1: the biggest impact, and I think we did make progress 1027 00:52:02,560 --> 00:52:04,520 Speaker 1: and in lots of different areas. One area we did 1028 00:52:04,840 --> 00:52:07,160 Speaker 1: recommend that we spend more time on that we didn't 1029 00:52:07,200 --> 00:52:10,640 Speaker 1: make progress on, but hopefully still will, will be immigration reform. 1030 00:52:10,880 --> 00:52:13,000 Speaker 1: How do we make sure we remain a magnet for 1031 00:52:13,040 --> 00:52:15,480 Speaker 1: people around the world who want to come here and 1032 00:52:15,480 --> 00:52:17,560 Speaker 1: and star our companies here and create jobs here? And 1033 00:52:17,560 --> 00:52:19,440 Speaker 1: how do we make it easier for people, a common 1034 00:52:19,520 --> 00:52:22,239 Speaker 1: people who come for universities, you know, education, how a 1035 00:52:22,239 --> 00:52:24,920 Speaker 1: little easier for them to stay? Uh. So, you know, 1036 00:52:24,960 --> 00:52:27,880 Speaker 1: we can continue to lead, to lead, to charge and 1037 00:52:27,880 --> 00:52:30,120 Speaker 1: and continue to be that, you know, that win what's 1038 00:52:30,160 --> 00:52:32,440 Speaker 1: now a global battle for talent. So that one area 1039 00:52:32,480 --> 00:52:36,360 Speaker 1: that was a strong recommendation of that the jobs council 1040 00:52:36,360 --> 00:52:38,640 Speaker 1: a decade ago. That that has not yet happened but 1041 00:52:38,640 --> 00:52:41,000 Speaker 1: hopefully will in the future. In the US there's a 1042 00:52:41,080 --> 00:52:45,600 Speaker 1: labor shortage at just about every level Um of the 1043 00:52:45,640 --> 00:52:50,839 Speaker 1: employment spectrum, entry level work, farm work, all the way 1044 00:52:50,920 --> 00:52:54,560 Speaker 1: up to very senior technology people. What can we do 1045 00:52:54,719 --> 00:52:56,520 Speaker 1: to bring in the best in the brightest from the 1046 00:52:56,520 --> 00:52:59,399 Speaker 1: rest of the world we've got to pass legislation. Came 1047 00:52:59,440 --> 00:53:02,839 Speaker 1: close to summer. There's some legislation called the startup visa 1048 00:53:02,920 --> 00:53:05,520 Speaker 1: that essentially would make it easier for entrepreneurs who are 1049 00:53:05,520 --> 00:53:09,319 Speaker 1: going to it was it was not get done. It 1050 00:53:09,400 --> 00:53:12,680 Speaker 1: was part of some broader legislation but ultimately did not 1051 00:53:12,760 --> 00:53:16,480 Speaker 1: get the time. And I recognize that immigration is complicated 1052 00:53:16,520 --> 00:53:19,720 Speaker 1: and really emotional and become very political because there's various 1053 00:53:19,760 --> 00:53:23,200 Speaker 1: facets of of Immigration and securing the board or things 1054 00:53:23,239 --> 00:53:25,799 Speaker 1: like that. But on the specific issue of how do 1055 00:53:25,880 --> 00:53:28,520 Speaker 1: we get people from all around the world who have 1056 00:53:28,800 --> 00:53:31,879 Speaker 1: ideas and want to start companies, how to make sure 1057 00:53:31,880 --> 00:53:34,120 Speaker 1: those companies are started here and the jobs, you know, 1058 00:53:34,400 --> 00:53:37,400 Speaker 1: therefore created here as opposed to created elsewhere? And we 1059 00:53:37,440 --> 00:53:41,400 Speaker 1: have seen in the last couple of decades globalization of 1060 00:53:41,760 --> 00:53:46,120 Speaker 1: innovation and the globalization of venture capital. Uh years ago, 1061 00:53:46,440 --> 00:53:49,720 Speaker 1: over of Global Venture Capital has invested in the United States. 1062 00:53:49,719 --> 00:53:52,440 Speaker 1: Now it's under so other countries have figured out that 1063 00:53:52,520 --> 00:53:54,960 Speaker 1: sort of the secret sauce that sort of powered the 1064 00:53:55,000 --> 00:53:59,520 Speaker 1: American story is is entrepreneurship and venture capitalists is part 1065 00:53:59,520 --> 00:54:01,680 Speaker 1: of that and I even in this new book on 1066 00:54:01,880 --> 00:54:05,080 Speaker 1: Rise Arrest, talk about the need to to focus on 1067 00:54:05,239 --> 00:54:09,359 Speaker 1: immigration reform, focused on backing uh founders from from all 1068 00:54:09,400 --> 00:54:12,120 Speaker 1: over the world and starting those companies. And I say 1069 00:54:12,160 --> 00:54:14,120 Speaker 1: it's obviously the key messages. They don't have to be 1070 00:54:14,120 --> 00:54:16,279 Speaker 1: in Silicon Valley and New York or Boston. They could 1071 00:54:16,280 --> 00:54:18,640 Speaker 1: be in many other cities around the country and that's 1072 00:54:18,680 --> 00:54:21,120 Speaker 1: what we're trying to promote. Let's talk a little bit 1073 00:54:21,120 --> 00:54:24,840 Speaker 1: about some of your philanthropic work. You join the giving 1074 00:54:24,880 --> 00:54:29,000 Speaker 1: pledge in tell us what that experience was like. I've 1075 00:54:29,000 --> 00:54:34,040 Speaker 1: heard some pretty amusing stories about working with Bill Gates 1076 00:54:34,080 --> 00:54:39,600 Speaker 1: and and that Um process. Well, obviously known Bill Gates 1077 00:54:39,640 --> 00:54:42,759 Speaker 1: for decades. We were vigorous competitors in the in the 1078 00:54:42,840 --> 00:54:45,120 Speaker 1: late nineties. Oh and I was running a o l 1079 00:54:45,840 --> 00:54:48,040 Speaker 1: but it was great to become partners around, you know, 1080 00:54:48,080 --> 00:54:52,520 Speaker 1: things around philanthropy, including the giving pledge and and Uh London. 1081 00:54:52,560 --> 00:54:55,759 Speaker 1: Gates and and also Warren Buffett known for quite some time. 1082 00:54:55,800 --> 00:54:57,640 Speaker 1: And so when they approached my wife Jean and I 1083 00:54:58,239 --> 00:55:00,919 Speaker 1: when they were getting as started, was over a decade ago, 1084 00:55:01,320 --> 00:55:05,560 Speaker 1: we were initially uh a little uh reluctant to be 1085 00:55:05,600 --> 00:55:08,799 Speaker 1: that public about what we're doing philanthropically. We've always done 1086 00:55:08,840 --> 00:55:11,720 Speaker 1: things in a somewhat a quieter way. But we decided 1087 00:55:11,760 --> 00:55:13,759 Speaker 1: to join because we thought maybe it'd lead others to 1088 00:55:13,800 --> 00:55:16,920 Speaker 1: making a commitment to giving the majority of their wealth away, 1089 00:55:16,960 --> 00:55:19,000 Speaker 1: but also we thought we could learn from others and 1090 00:55:19,000 --> 00:55:20,560 Speaker 1: and you know, you know, to learn how to be 1091 00:55:20,640 --> 00:55:24,520 Speaker 1: smarter about the philanthropic investments we we made. I think 1092 00:55:24,520 --> 00:55:26,920 Speaker 1: that's been the case. There's been a number of meetings 1093 00:55:26,920 --> 00:55:30,680 Speaker 1: of the giving pledgers on specific topics and also kind 1094 00:55:30,680 --> 00:55:33,719 Speaker 1: of annual meetings, and I think everybody that's part of 1095 00:55:33,760 --> 00:55:36,719 Speaker 1: the giving pledges is a little bit wiser because of 1096 00:55:36,760 --> 00:55:40,960 Speaker 1: their network that's been created among the people have made 1097 00:55:40,960 --> 00:55:43,640 Speaker 1: that commitment. So so let's talk a little bit about 1098 00:55:43,680 --> 00:55:48,359 Speaker 1: the metrics of giving. Go Back Twenty, thirty years and 1099 00:55:48,440 --> 00:55:51,880 Speaker 1: the question was sort of like advertising. You know some 1100 00:55:52,040 --> 00:55:54,279 Speaker 1: of its effective, you just don't know which half is. 1101 00:55:54,719 --> 00:56:00,200 Speaker 1: How do you think about tracking, analyzing and determining if 1102 00:56:00,239 --> 00:56:04,200 Speaker 1: you're moving the needle when you're making a specific donation? Well, 1103 00:56:04,239 --> 00:56:06,239 Speaker 1: first of all I should say my wife, Jeane, has 1104 00:56:06,400 --> 00:56:09,120 Speaker 1: has led the case foundations since we started at twenty 1105 00:56:09,160 --> 00:56:12,280 Speaker 1: five years. I've been focusing more on the investment side. 1106 00:56:12,320 --> 00:56:14,560 Speaker 1: She's been focusing more on the philanthropic side. So she 1107 00:56:14,600 --> 00:56:16,640 Speaker 1: gets all the all the all the credit, but I 1108 00:56:16,719 --> 00:56:19,760 Speaker 1: think we and others have gotten much more, uh, precise 1109 00:56:19,800 --> 00:56:22,319 Speaker 1: in terms of trying to understand the impact of the 1110 00:56:22,320 --> 00:56:26,000 Speaker 1: philanthropic investments we're making. What what is the what are 1111 00:56:26,000 --> 00:56:29,600 Speaker 1: the key metrics that should be tracked there? And we 1112 00:56:30,120 --> 00:56:33,319 Speaker 1: uh are physically gene leading the foundation has has brought 1113 00:56:33,320 --> 00:56:35,719 Speaker 1: a little bit of that venture capital mentality to it 1114 00:56:35,760 --> 00:56:37,920 Speaker 1: and rather than just pick one thing you invest in, 1115 00:56:38,000 --> 00:56:40,560 Speaker 1: we picked several things and and cycle them through it 1116 00:56:40,920 --> 00:56:45,080 Speaker 1: at various times. Right now, primary focus of gene is 1117 00:56:45,239 --> 00:56:48,400 Speaker 1: on National Geographic Society, which he is the chair of. 1118 00:56:49,560 --> 00:56:52,520 Speaker 1: I've spending time as the chair of the Smithsonian institution, 1119 00:56:52,560 --> 00:56:55,600 Speaker 1: including how to move it into more of a digital future. 1120 00:56:55,680 --> 00:56:58,880 Speaker 1: So those are a couple of areas of focus. But 1121 00:56:58,920 --> 00:57:03,040 Speaker 1: we found it. You can bring some of your business 1122 00:57:03,120 --> 00:57:06,319 Speaker 1: experience to the philanthropic sector. You just have to recognize 1123 00:57:06,360 --> 00:57:09,760 Speaker 1: it's it's different. But one thing that is similar across 1124 00:57:09,800 --> 00:57:12,120 Speaker 1: both of them is the value of partnerships. There's an 1125 00:57:12,120 --> 00:57:14,719 Speaker 1: African proverb we both loved that if you want to 1126 00:57:14,760 --> 00:57:16,560 Speaker 1: go quickly, you can go alone, but if you want 1127 00:57:16,560 --> 00:57:18,600 Speaker 1: to go far you must go together. So a lot 1128 00:57:18,640 --> 00:57:22,440 Speaker 1: of what we do with the philanthropic efforts around building partnerships. 1129 00:57:22,440 --> 00:57:24,919 Speaker 1: A lot of what we do with revolution and also 1130 00:57:25,040 --> 00:57:28,120 Speaker 1: rise the rest of around building partnerships, so that you know, 1131 00:57:28,360 --> 00:57:32,560 Speaker 1: idea of collaboration and going far together is one of 1132 00:57:32,760 --> 00:57:36,000 Speaker 1: the concerts across all our our work. So you mentioned 1133 00:57:36,000 --> 00:57:40,240 Speaker 1: the Smithsonian Um. I'M A fan. The Smithsonian Institution is 1134 00:57:40,280 --> 00:57:45,080 Speaker 1: the world's largest museum and Research Complex. What led you 1135 00:57:45,240 --> 00:57:48,960 Speaker 1: to that? As earning particular interest in science, history technology, 1136 00:57:49,520 --> 00:57:51,600 Speaker 1: how did you get involved with them? I was asked 1137 00:57:51,600 --> 00:57:54,280 Speaker 1: over a decade ago to join what they called the 1138 00:57:54,320 --> 00:57:57,439 Speaker 1: board of regents and then where recently became the chair 1139 00:57:57,440 --> 00:58:00,320 Speaker 1: of it. And I, like many people, have seen the 1140 00:58:00,440 --> 00:58:02,760 Speaker 1: wonders of the Smithsonian. I remember even when I was, 1141 00:58:03,720 --> 00:58:10,000 Speaker 1: I guess I was eighteen, I came to Washington and 1142 00:58:10,560 --> 00:58:13,320 Speaker 1: Uh and it thought the Smithsonian for the first time 1143 00:58:13,360 --> 00:58:15,920 Speaker 1: and experienced some of the wonders of it was inspired 1144 00:58:15,960 --> 00:58:18,040 Speaker 1: to do a number of different things because of it. 1145 00:58:18,080 --> 00:58:20,720 Speaker 1: So I wanted to make a contribution to kind of 1146 00:58:20,720 --> 00:58:23,600 Speaker 1: take the Smithsonian into the future, build on it's it's 1147 00:58:23,720 --> 00:58:27,880 Speaker 1: legacy over hundred seventy five years around increasing and diffusing knowledge, 1148 00:58:28,280 --> 00:58:31,880 Speaker 1: UH and add to it a digital components that you know, 1149 00:58:31,880 --> 00:58:35,040 Speaker 1: we we've been working on what we call the virtual Smithsonian. 1150 00:58:35,280 --> 00:58:37,560 Speaker 1: Rather than just assume that you'RE gonna fly to Washington 1151 00:58:37,600 --> 00:58:40,480 Speaker 1: Sea visit the National Mall and visit our nineteen museums, 1152 00:58:40,960 --> 00:58:42,520 Speaker 1: we want to come to you and so we want 1153 00:58:42,560 --> 00:58:45,080 Speaker 1: the Smithsonian to be in every home and every classroom 1154 00:58:45,120 --> 00:58:47,360 Speaker 1: and embracing a lot of partnerships, embracing a lot of 1155 00:58:47,360 --> 00:58:50,840 Speaker 1: technologies to to do that. Spirit of St Louis is hanging. 1156 00:58:51,760 --> 00:58:55,480 Speaker 1: That's my vivid recollection as a kid going through it 1157 00:58:55,560 --> 00:58:58,360 Speaker 1: and it's just stayed with me for for forever. And 1158 00:58:58,400 --> 00:59:01,120 Speaker 1: we have probably know we have two air and space museums, 1159 00:59:01,120 --> 00:59:03,680 Speaker 1: one on the National Mall One out by Dallas Airport. 1160 00:59:03,720 --> 00:59:06,000 Speaker 1: The one National Mall has been closed for most of 1161 00:59:06,040 --> 00:59:08,840 Speaker 1: the past year. It's under reconstruction. It was it was 1162 00:59:08,920 --> 00:59:13,080 Speaker 1: opened in nineteen seventy six and we're going to reopen 1163 00:59:13,120 --> 00:59:16,280 Speaker 1: it actually next month, uh, and part of it is 1164 00:59:16,320 --> 00:59:19,480 Speaker 1: being reimagined to be the bezos learning center. The largest 1165 00:59:19,480 --> 00:59:22,400 Speaker 1: philanthropic gift in the Smithsonian's history is from J Bezos, 1166 00:59:22,400 --> 00:59:25,560 Speaker 1: a two million dollar gift to the Smithsonian to build 1167 00:59:25,560 --> 00:59:30,280 Speaker 1: out that air and Space Museum. Really, really quite fascinating. Um, 1168 00:59:31,240 --> 00:59:35,080 Speaker 1: you mentioned partnerships. What did you bring from your a 1169 00:59:35,200 --> 00:59:40,680 Speaker 1: o l experience to philanthropy? How much of that foundational, 1170 00:59:41,720 --> 00:59:45,120 Speaker 1: you know, building a business, ramping it up, taking a public, 1171 00:59:45,200 --> 00:59:48,960 Speaker 1: merging it? How does that apply to a very different 1172 00:59:49,120 --> 00:59:53,120 Speaker 1: part of of the world? Well, again, my wife Jeane 1173 00:59:53,160 --> 00:59:56,760 Speaker 1: gets been taking the lead here, but from my prism 1174 00:59:56,920 --> 01:00:00,840 Speaker 1: it's how do you identify problems need to be solved 1175 01:00:01,640 --> 01:00:06,000 Speaker 1: and then bring a both an entrepreneural perspective in terms 1176 01:00:06,000 --> 01:00:09,280 Speaker 1: of what new things might get started, as well as 1177 01:00:09,320 --> 01:00:12,720 Speaker 1: a kind of almost like growth investing perspective what existing 1178 01:00:12,880 --> 01:00:17,080 Speaker 1: organizations might get scaled and we've done work on both sides, 1179 01:00:17,120 --> 01:00:21,600 Speaker 1: made investments to scale up existing organizations like habitat humanity 1180 01:00:21,680 --> 01:00:24,160 Speaker 1: or Special Olympics, which we were, at the timing, the largest, 1181 01:00:24,400 --> 01:00:26,440 Speaker 1: you know, kind of givers to this goes back a 1182 01:00:26,480 --> 01:00:29,480 Speaker 1: couple of decades, as well as launching some initiatives ourselves, 1183 01:00:29,520 --> 01:00:33,680 Speaker 1: including a digital divide initiative over twenty years ago to 1184 01:00:33,760 --> 01:00:37,600 Speaker 1: try to get computer technology centers installed in different neighborhoods 1185 01:00:37,600 --> 01:00:40,360 Speaker 1: and that didn't otherwise have access to it, with partnerships 1186 01:00:40,400 --> 01:00:42,960 Speaker 1: with with a lot of people that made that possible. 1187 01:00:43,000 --> 01:00:45,800 Speaker 1: So it's a mix of identifying some of these uh 1188 01:00:46,400 --> 01:00:48,560 Speaker 1: problems that need to be solved and figuring out some 1189 01:00:48,640 --> 01:00:51,880 Speaker 1: of them are kind of like using the investing mentality, 1190 01:00:51,960 --> 01:00:54,120 Speaker 1: or I think we make seed investments in to get 1191 01:00:54,160 --> 01:00:58,200 Speaker 1: them started. Some of them also are backing existing organizations 1192 01:00:58,240 --> 01:01:01,720 Speaker 1: and giving them the growth level investments that really scale 1193 01:01:01,760 --> 01:01:05,320 Speaker 1: up faster. You mentioned digital divide. I don't recall which 1194 01:01:05,400 --> 01:01:10,680 Speaker 1: legislation it might have been. The infrastructure bill um now 1195 01:01:10,920 --> 01:01:14,600 Speaker 1: builds out broadband to pretty much every corner of the country. 1196 01:01:15,120 --> 01:01:18,000 Speaker 1: How big of a digital divide is it? Is it 1197 01:01:18,600 --> 01:01:22,720 Speaker 1: rich versus poor, or is it urban versus rural? Tell 1198 01:01:22,800 --> 01:01:25,160 Speaker 1: us a little bit about what the digital divide looks like. 1199 01:01:25,240 --> 01:01:27,800 Speaker 1: It's both and and the digital divide we're focused on 1200 01:01:28,080 --> 01:01:32,200 Speaker 1: twenty plus years ago was just getting people connected to 1201 01:01:32,240 --> 01:01:36,440 Speaker 1: the Internet, getting computers into the classrooms and community centers 1202 01:01:36,440 --> 01:01:39,720 Speaker 1: and some level of connectivity. As we've seen with the pandemic, 1203 01:01:39,800 --> 01:01:43,440 Speaker 1: that connectivity, particularly broadband connectivity, is much more important and 1204 01:01:43,480 --> 01:01:46,120 Speaker 1: it's not much harder to not just learn but just 1205 01:01:46,200 --> 01:01:49,840 Speaker 1: function in life without that broadband connectivity. And and your 1206 01:01:49,920 --> 01:01:51,920 Speaker 1: question is both. There are different parts of the country 1207 01:01:51,920 --> 01:01:55,000 Speaker 1: that definitely have, you know, slow, in some cases non 1208 01:01:55,000 --> 01:01:58,520 Speaker 1: existent internet connectivity. Uh and so those areas are are 1209 01:01:58,600 --> 01:02:02,200 Speaker 1: disadvantage in this legist ation will help help there. And obviously, 1210 01:02:02,200 --> 01:02:05,720 Speaker 1: even in big cities there are parts of the communities 1211 01:02:05,720 --> 01:02:08,520 Speaker 1: that don't have access to high speed as well. So 1212 01:02:08,640 --> 01:02:11,320 Speaker 1: it become a more of a utility that that, you know, 1213 01:02:11,440 --> 01:02:13,840 Speaker 1: everybody needs to make sure they can, you know, kind 1214 01:02:13,840 --> 01:02:18,160 Speaker 1: of compete in this world and and and participate. Uh 1215 01:02:18,200 --> 01:02:23,360 Speaker 1: and increasingly health care is using telemedicine. Increasingly education is 1216 01:02:23,440 --> 01:02:26,240 Speaker 1: using tell of learning. It's it's not just about the 1217 01:02:26,280 --> 01:02:29,000 Speaker 1: ability to, you know, get news or by products, it's 1218 01:02:29,040 --> 01:02:31,160 Speaker 1: also the ability to do some of the most fundamental 1219 01:02:31,200 --> 01:02:34,760 Speaker 1: aspects of our lives. So ubiquitous connectivity is important. You 1220 01:02:34,880 --> 01:02:38,760 Speaker 1: talk a lot about leveling the playing field. That's an expression. 1221 01:02:39,480 --> 01:02:42,200 Speaker 1: You mentioned in terms of access to capital. You mentioned 1222 01:02:42,200 --> 01:02:46,520 Speaker 1: in access to networks, access to Internet and broadband. Why 1223 01:02:46,600 --> 01:02:50,200 Speaker 1: is that so important to you? It's actually something that's 1224 01:02:50,240 --> 01:02:54,120 Speaker 1: sort of and part of everything. Are Almost everything I've 1225 01:02:54,160 --> 01:02:58,120 Speaker 1: involved in. To me, the excitement, the passion in those 1226 01:02:58,160 --> 01:03:00,840 Speaker 1: early days of the Internet. I'm talking about the eighties 1227 01:03:00,840 --> 01:03:02,840 Speaker 1: when we were just getting started, in the nineties when 1228 01:03:02,840 --> 01:03:06,040 Speaker 1: the Internet was scaling, because I really believe the Internet 1229 01:03:06,440 --> 01:03:08,960 Speaker 1: would make the world a better place. The Internet would 1230 01:03:09,200 --> 01:03:14,520 Speaker 1: give people access to information, education, commerce, you know, community 1231 01:03:14,560 --> 01:03:17,880 Speaker 1: that they otherwise wouldn't wouldn't have uh, and also would 1232 01:03:18,000 --> 01:03:20,240 Speaker 1: level the playing field that right now, in the earlier 1233 01:03:20,280 --> 01:03:22,480 Speaker 1: those early days, are on the news side, there are 1234 01:03:22,480 --> 01:03:27,000 Speaker 1: only a few news networks like CBS and ABC and 1235 01:03:26,760 --> 01:03:29,840 Speaker 1: and and so forth, or maybe if you were wealthy, 1236 01:03:29,840 --> 01:03:32,680 Speaker 1: you might have owned the local newspaper. There weren't really 1237 01:03:32,720 --> 01:03:35,440 Speaker 1: opportunities for most people's voices to be heard, and so 1238 01:03:35,840 --> 01:03:38,600 Speaker 1: I really felt that the Internet could help create more 1239 01:03:38,640 --> 01:03:41,440 Speaker 1: of those voices and level a plank field and, as 1240 01:03:41,480 --> 01:03:43,840 Speaker 1: you say, the effort in the last decade around rise 1241 01:03:43,920 --> 01:03:46,040 Speaker 1: the rest, even the reason I wrote this, this book 1242 01:03:46,040 --> 01:03:47,800 Speaker 1: on rise the rest, is I'm again trying to level 1243 01:03:47,800 --> 01:03:50,400 Speaker 1: the plank field create more opportunity for more people and 1244 01:03:50,480 --> 01:03:53,680 Speaker 1: more places, and it's just it's just something that drives me. 1245 01:03:53,760 --> 01:03:56,840 Speaker 1: How do you make sure that everybody has a, you know, 1246 01:03:56,920 --> 01:03:58,960 Speaker 1: kind of a fair shot? The outcomes are going to 1247 01:03:59,000 --> 01:04:01,240 Speaker 1: be different, but the opera two NAYS, if for everybody, 1248 01:04:01,280 --> 01:04:05,040 Speaker 1: should should be be much better than they have been. 1249 01:04:05,360 --> 01:04:08,280 Speaker 1: You mentioned access to information. There's a line from either 1250 01:04:08,360 --> 01:04:11,800 Speaker 1: the book or or something you wrote about the book. 1251 01:04:12,320 --> 01:04:15,560 Speaker 1: A hundred years ago the amount of information people would 1252 01:04:15,600 --> 01:04:20,240 Speaker 1: encounter in their lifetime was the same as a daily 1253 01:04:20,560 --> 01:04:24,320 Speaker 1: edition of The New York Times. That that's just astonishing. Yeah, 1254 01:04:24,400 --> 01:04:26,800 Speaker 1: it's been an acceleration of that and I recognize there's 1255 01:04:26,840 --> 01:04:31,120 Speaker 1: also now some unintended consequences. Almost a glut of information 1256 01:04:31,240 --> 01:04:34,120 Speaker 1: and and a lot of issues around you know, what is, 1257 01:04:34,720 --> 01:04:37,360 Speaker 1: you know, news and what is fact and so forth, 1258 01:04:37,440 --> 01:04:39,800 Speaker 1: and even in the social media space there have been 1259 01:04:39,800 --> 01:04:42,280 Speaker 1: some you know, some challenges. So all these things have 1260 01:04:42,360 --> 01:04:45,880 Speaker 1: some pluses and some minuses. The questions, I think for societies, 1261 01:04:45,920 --> 01:04:48,600 Speaker 1: how do you maximize the benefits and and minimize some 1262 01:04:48,640 --> 01:04:52,760 Speaker 1: of the risks, really quite interesting. My last question before 1263 01:04:52,760 --> 01:04:55,400 Speaker 1: we get to our favorites is a little bit of 1264 01:04:55,440 --> 01:04:59,160 Speaker 1: a curveball. You're born and raised in Hawaii but then 1265 01:04:59,240 --> 01:05:02,720 Speaker 1: relocate at Washington D C. That seems like the worst 1266 01:05:02,840 --> 01:05:06,960 Speaker 1: weather trade I've ever seen. D C is Humid and 1267 01:05:06,960 --> 01:05:10,000 Speaker 1: and in Hawaii is just delightful. What was it like 1268 01:05:10,240 --> 01:05:13,360 Speaker 1: leaving that behind? Well, I love Hawaii's born and raised there. 1269 01:05:13,360 --> 01:05:15,400 Speaker 1: Both my parents were born and raised there's our family 1270 01:05:15,440 --> 01:05:18,120 Speaker 1: goes back over a hundred years and of investments there 1271 01:05:18,120 --> 01:05:20,600 Speaker 1: and a family there, uh, and to try to get 1272 01:05:20,640 --> 01:05:23,840 Speaker 1: back as often, I say, as they can. But for 1273 01:05:23,880 --> 01:05:27,720 Speaker 1: me I really wanted to pursue a different path than 1274 01:05:27,800 --> 01:05:31,040 Speaker 1: staying there, which led going to college in Massachusetts and 1275 01:05:31,120 --> 01:05:33,640 Speaker 1: working in Ohio, then working in Kansas and then for 1276 01:05:33,680 --> 01:05:36,320 Speaker 1: the last few decades in the Virginia, you know, kind 1277 01:05:36,320 --> 01:05:39,760 Speaker 1: of a D C area, Um, and I think that journey, 1278 01:05:39,800 --> 01:05:43,200 Speaker 1: including growing up in in Hawaii, it's before starting a 1279 01:05:43,280 --> 01:05:46,320 Speaker 1: company and starting a well in Virginia, I think also 1280 01:05:46,320 --> 01:05:48,919 Speaker 1: informs my my my views around the rise of the rest. 1281 01:05:48,960 --> 01:05:50,560 Speaker 1: I think it's part of the reason I'm so passionate 1282 01:05:50,600 --> 01:05:53,960 Speaker 1: about trying to create more opportunity for more people in 1283 01:05:54,400 --> 01:05:57,240 Speaker 1: more places. And when I grew up in Whi, I remember, uh, 1284 01:05:57,640 --> 01:06:01,439 Speaker 1: the early days. This would have been a US the seventies. Uh. 1285 01:06:01,520 --> 01:06:04,520 Speaker 1: We get television shows a week late, which you know 1286 01:06:04,800 --> 01:06:07,240 Speaker 1: it was. There was a satellite technology and not advanced 1287 01:06:07,280 --> 01:06:09,200 Speaker 1: the point where they could beam them, so we would 1288 01:06:09,200 --> 01:06:15,320 Speaker 1: get them the tape sent over. So you basically you 1289 01:06:15,320 --> 01:06:16,920 Speaker 1: had a friend on the mainland. You can find out 1290 01:06:16,960 --> 01:06:18,800 Speaker 1: what's going to happen on the television show this week 1291 01:06:18,800 --> 01:06:21,080 Speaker 1: because it already happened on the television show there last 1292 01:06:21,080 --> 01:06:23,000 Speaker 1: week just you know, it was a little bit, you know, 1293 01:06:23,080 --> 01:06:25,880 Speaker 1: kind of off the you know, the beaten path, I guess. 1294 01:06:26,440 --> 01:06:29,880 Speaker 1: And starting a L in in Um the Tyson's Corner 1295 01:06:29,960 --> 01:06:32,360 Speaker 1: Virginia area. It was also off the beaten paths I 1296 01:06:32,400 --> 01:06:34,360 Speaker 1: mentioned before. It was harder to get going there. I 1297 01:06:34,360 --> 01:06:36,840 Speaker 1: think that's why I'm so passionate now about, you know, 1298 01:06:36,880 --> 01:06:40,040 Speaker 1: creating opportunity for entrepreneurs all across the country, backing them 1299 01:06:40,040 --> 01:06:42,400 Speaker 1: in cities all across the country, and why I decided 1300 01:06:42,400 --> 01:06:44,640 Speaker 1: to write the book to tell those stories, uh, and 1301 01:06:44,880 --> 01:06:47,440 Speaker 1: and give people more of a sense of what's happening 1302 01:06:47,440 --> 01:06:50,040 Speaker 1: out there and more of a sense of what's happening, uh, 1303 01:06:50,440 --> 01:06:52,640 Speaker 1: what could be happening all across America in the future. 1304 01:06:52,840 --> 01:06:55,720 Speaker 1: Who would have guessed why? You was that formative to 1305 01:06:55,720 --> 01:06:59,280 Speaker 1: to the worlds of entrepreneurship and and venture? All right, 1306 01:06:59,360 --> 01:07:02,360 Speaker 1: so let's up to our favorite questions that we ask 1307 01:07:02,440 --> 01:07:05,600 Speaker 1: all of our guests, starting with tell us what kept 1308 01:07:05,680 --> 01:07:10,440 Speaker 1: you entertained during the pandemic. What were you watching or 1309 01:07:10,560 --> 01:07:13,720 Speaker 1: or listening to? We watched, not a lot of things. 1310 01:07:13,880 --> 01:07:15,959 Speaker 1: I we're not big television watchers, but we definitely watched 1311 01:07:16,440 --> 01:07:20,320 Speaker 1: more more during the pandemic. I think one that I 1312 01:07:20,920 --> 01:07:25,000 Speaker 1: remember we watched uh that I recalled, particularly given what's 1313 01:07:25,000 --> 01:07:27,520 Speaker 1: happened recently in the the last few weeks with the death 1314 01:07:27,560 --> 01:07:30,400 Speaker 1: of the Queen, was the crown, which that was was fabulous. 1315 01:07:30,680 --> 01:07:33,720 Speaker 1: More recently, I mentioned my wife as the chair of 1316 01:07:33,720 --> 01:07:36,480 Speaker 1: the National Geographic Society. They have a partnership with Disney, 1317 01:07:36,520 --> 01:07:39,960 Speaker 1: what's called National Geographic Partners UH and, as a results, 1318 01:07:39,960 --> 01:07:42,000 Speaker 1: have a big presence on Disney plus and there's a 1319 01:07:42,000 --> 01:07:43,800 Speaker 1: new series just came out in the last couple of 1320 01:07:43,800 --> 01:07:47,480 Speaker 1: months called America the beautiful. That's really spectacular. Haven't watched that. 1321 01:07:47,520 --> 01:07:51,120 Speaker 1: You should. I watched Um, what was it earth at 1322 01:07:51,240 --> 01:07:54,840 Speaker 1: night on National Geographic on Disney, and some of it 1323 01:07:54,920 --> 01:07:58,680 Speaker 1: is just astonishing photography. I'll take a look at America 1324 01:07:58,760 --> 01:08:01,840 Speaker 1: the beautiful. Um. Tell us about your mentors who helped 1325 01:08:01,920 --> 01:08:04,520 Speaker 1: to shape your career. I think there are different people 1326 01:08:04,520 --> 01:08:06,400 Speaker 1: at different stages. In the early days, I think I 1327 01:08:06,400 --> 01:08:08,960 Speaker 1: really did learn a lot from my parents around kind 1328 01:08:08,960 --> 01:08:11,400 Speaker 1: of taking a long view, working hard, trying to be 1329 01:08:11,600 --> 01:08:14,600 Speaker 1: humble about how you approach things. I got a lot 1330 01:08:14,600 --> 01:08:16,679 Speaker 1: of experience and mentoring at some of the big companies 1331 01:08:16,720 --> 01:08:18,800 Speaker 1: I worked for, like procter and gamble and since then 1332 01:08:18,880 --> 01:08:21,759 Speaker 1: they have a great, great training program in the early 1333 01:08:21,840 --> 01:08:23,880 Speaker 1: days of a o L, I learned a lot from 1334 01:08:24,160 --> 01:08:26,439 Speaker 1: co founders Jim Kimsey and Mark Seraph, we were both 1335 01:08:26,520 --> 01:08:28,400 Speaker 1: quite a bit older than I was, and from our 1336 01:08:28,479 --> 01:08:30,920 Speaker 1: venture capitalists. I learned a lot from from being able 1337 01:08:30,960 --> 01:08:33,520 Speaker 1: to work with those venture capitalist and getting their perspective 1338 01:08:33,560 --> 01:08:36,760 Speaker 1: on on scaling businesses, which I think helped me as 1339 01:08:36,840 --> 01:08:39,120 Speaker 1: a CEO of a wall and also certainly helped now 1340 01:08:39,160 --> 01:08:43,320 Speaker 1: as as an investor at at revolution. So I, like 1341 01:08:43,360 --> 01:08:47,080 Speaker 1: a lot of people, uh, kind of curious and like 1342 01:08:47,160 --> 01:08:49,280 Speaker 1: to bump into people and ideas and kind of a 1343 01:08:49,320 --> 01:08:53,920 Speaker 1: sponge for for different perspectives. Uh. Let's talk about books. 1344 01:08:53,960 --> 01:08:55,600 Speaker 1: What are some of your favorites and what are you 1345 01:08:55,600 --> 01:08:58,679 Speaker 1: reading right now? Reading Right now actually a book called 1346 01:08:59,200 --> 01:09:01,920 Speaker 1: be actually interest to folks who listen to you, called 1347 01:09:01,960 --> 01:09:04,880 Speaker 1: how to invest, by David Rubinstein. Your book just came 1348 01:09:04,920 --> 01:09:06,920 Speaker 1: out and it's gonna be fun and a couple of 1349 01:09:06,920 --> 01:09:08,800 Speaker 1: weeks we're going to do a joint thing in the 1350 01:09:08,840 --> 01:09:11,519 Speaker 1: Economic Club in Washington D C where he's going to 1351 01:09:11,640 --> 01:09:14,200 Speaker 1: interview me about my book rise. The rest, I'm gonna 1352 01:09:14,439 --> 01:09:16,519 Speaker 1: interview him about his book how to invest. So that 1353 01:09:16,560 --> 01:09:19,559 Speaker 1: should be uh fun doing the pandemic. My favorite book 1354 01:09:19,600 --> 01:09:22,839 Speaker 1: was a gentleman in Moscow, this great novel by Amor toles. 1355 01:09:22,880 --> 01:09:25,879 Speaker 1: It was really quite, quite fascinating. What sort of advice 1356 01:09:25,920 --> 01:09:28,760 Speaker 1: would you give to a recent college graduate who is 1357 01:09:28,880 --> 01:09:34,439 Speaker 1: interested in a career in either technology, entrepreneurship or invest in? Well, 1358 01:09:34,439 --> 01:09:36,679 Speaker 1: a couple of things I'd say. First of all, again 1359 01:09:36,840 --> 01:09:38,679 Speaker 1: part of the reason I wrote the book on rise rest. 1360 01:09:38,720 --> 01:09:41,080 Speaker 1: Don't assume that you have to be in Silicon Valley 1361 01:09:41,160 --> 01:09:42,720 Speaker 1: or you're going to be on the you know, the 1362 01:09:42,720 --> 01:09:45,280 Speaker 1: B team, the junior varsity. What's now happening all across 1363 01:09:45,320 --> 01:09:47,920 Speaker 1: the country is really extraordinary and that will accelerate over 1364 01:09:47,960 --> 01:09:50,760 Speaker 1: the next decade. So decide what city you want to 1365 01:09:50,760 --> 01:09:53,320 Speaker 1: live in and you can think of it for personal 1366 01:09:53,360 --> 01:09:56,719 Speaker 1: reasons or for a strategic reason, based on the industry 1367 01:09:56,720 --> 01:09:59,719 Speaker 1: you most care about. Uh, and maybe at Silicon Valley, 1368 01:09:59,760 --> 01:10:02,519 Speaker 1: but increasingly won't be. There will be many parts of 1369 01:10:02,520 --> 01:10:05,920 Speaker 1: the country that you should consider living in. Zecond would 1370 01:10:05,960 --> 01:10:09,479 Speaker 1: be to always remain curious. You know that there's I've 1371 01:10:09,560 --> 01:10:12,880 Speaker 1: learned a lot from you know, sometimes by Serendipity, just 1372 01:10:13,000 --> 01:10:14,719 Speaker 1: being in the right place at the right time, bumping 1373 01:10:14,720 --> 01:10:17,519 Speaker 1: into somebody listening to something, reading something, and that helps 1374 01:10:17,560 --> 01:10:20,720 Speaker 1: inform your your your your perspective on things. And a 1375 01:10:20,760 --> 01:10:23,759 Speaker 1: final one is certainly it's my experience with the building 1376 01:10:23,760 --> 01:10:25,720 Speaker 1: a wall on the Internet more recently, what we've been 1377 01:10:25,720 --> 01:10:28,120 Speaker 1: doing with rise. The rest is this, you know, kind 1378 01:10:28,120 --> 01:10:31,840 Speaker 1: of idea of revolutions happening in evolutionary ways. You have 1379 01:10:31,920 --> 01:10:33,760 Speaker 1: to take a long term view. You have to be 1380 01:10:33,880 --> 01:10:38,839 Speaker 1: persistent there. Sometimes in the entrepreneur world world, people focus 1381 01:10:38,880 --> 01:10:42,320 Speaker 1: too much on the the overnight successes of Mark Zuckerberg 1382 01:10:42,400 --> 01:10:44,920 Speaker 1: and his dorm room coming up with facebook and you know, 1383 01:10:44,960 --> 01:10:47,720 Speaker 1: a year later it's a global phenomena. A year later is, 1384 01:10:47,760 --> 01:10:50,280 Speaker 1: you know, the billionaire kind of thing. That's super rare 1385 01:10:50,320 --> 01:10:53,120 Speaker 1: and most of these things take take a while and 1386 01:10:53,280 --> 01:10:56,080 Speaker 1: really are going to be two steps forward, one step back, 1387 01:10:56,200 --> 01:10:59,040 Speaker 1: a lot of near death experiences and if you really 1388 01:10:59,040 --> 01:11:02,639 Speaker 1: care about it, you keep fighting. And our final question. 1389 01:11:03,000 --> 01:11:06,400 Speaker 1: What do you know about the world of startups, Venture 1390 01:11:06,720 --> 01:11:10,840 Speaker 1: Entrepreneurship Technology today that you wish you knew back in 1391 01:11:11,920 --> 01:11:16,599 Speaker 1: when you were first launching America Online? I would say 1392 01:11:16,680 --> 01:11:20,439 Speaker 1: we've covered some of this. The importance of partnerships. That 1393 01:11:20,439 --> 01:11:23,479 Speaker 1: that the almost everything I've done that's had a real 1394 01:11:23,520 --> 01:11:26,200 Speaker 1: impact in the world. It's about partnerships. And so how 1395 01:11:26,240 --> 01:11:30,160 Speaker 1: do you identify opportunities for collaboration that can you know, 1396 01:11:30,240 --> 01:11:33,200 Speaker 1: that can really allow things to you know, to scale, 1397 01:11:33,840 --> 01:11:36,120 Speaker 1: uh and, and you know that's one of the key things. 1398 01:11:36,160 --> 01:11:39,640 Speaker 1: The second would be it seems so basic, almost so obvious, 1399 01:11:39,840 --> 01:11:41,680 Speaker 1: but it's true. At the end of the day it 1400 01:11:41,720 --> 01:11:44,599 Speaker 1: all comes down to people. The people you work with, 1401 01:11:44,880 --> 01:11:48,000 Speaker 1: UH and the people you partner with are going to 1402 01:11:48,200 --> 01:11:51,640 Speaker 1: result in success or failure. And it's not about you. 1403 01:11:51,800 --> 01:11:54,840 Speaker 1: Entrepreneurship as a team sport. How do you assemble kind 1404 01:11:54,880 --> 01:11:57,760 Speaker 1: of the Dream Team of people would bring different perspective 1405 01:11:57,800 --> 01:12:00,400 Speaker 1: but work together well in a in a team? Uh 1406 01:12:00,400 --> 01:12:03,840 Speaker 1: and everything I've I've that's had success in my life, 1407 01:12:04,240 --> 01:12:07,000 Speaker 1: including all and more recently, well done with rides rest. 1408 01:12:07,040 --> 01:12:09,559 Speaker 1: We've had the right team. The things that have been struggles, 1409 01:12:09,600 --> 01:12:12,400 Speaker 1: including the merger with a Long Time Warner, which obviously 1410 01:12:12,479 --> 01:12:15,160 Speaker 1: was a disappointment, we didn't have the people's side right. 1411 01:12:15,200 --> 01:12:16,960 Speaker 1: We didn't have the right people focused on the right 1412 01:12:17,000 --> 01:12:19,600 Speaker 1: priorities working together in the right way. So just a 1413 01:12:19,640 --> 01:12:21,600 Speaker 1: reminder to me that you have to constantly take a 1414 01:12:21,600 --> 01:12:25,320 Speaker 1: step back and make sure you really have the people's 1415 01:12:25,320 --> 01:12:28,719 Speaker 1: side front and center. We have been speaking with Steve Case, 1416 01:12:29,040 --> 01:12:33,520 Speaker 1: chairman and CEO of revolution. If you enjoy this conversation, 1417 01:12:33,960 --> 01:12:36,519 Speaker 1: be sure and check out any of our previous four 1418 01:12:36,600 --> 01:12:39,759 Speaker 1: hundred or so that we've done over the past eight years. 1419 01:12:39,920 --> 01:12:43,799 Speaker 1: You can find those at Itunes, spotify, wherever you feed 1420 01:12:43,840 --> 01:12:47,960 Speaker 1: your podcast fix. We love your comments, feedback and suggestions 1421 01:12:48,080 --> 01:12:51,559 Speaker 1: right to us at M Ib podcast at Bloomberg Dot net. 1422 01:12:52,000 --> 01:12:54,960 Speaker 1: Follow me on twitter at Rit halts. Sign up from 1423 01:12:54,960 --> 01:12:58,640 Speaker 1: my daily reading list at RIT HALTS DOT com. I 1424 01:12:58,640 --> 01:13:00,639 Speaker 1: would be remiss if I did not thank the crack 1425 01:13:00,720 --> 01:13:04,719 Speaker 1: team who helps put these conversations together each week. Justin 1426 01:13:04,800 --> 01:13:08,560 Speaker 1: Milner is my audio engineer, Paris Walden is my producer, 1427 01:13:09,000 --> 01:13:13,200 Speaker 1: Sean Russo is my head of research. Attica Val Bron 1428 01:13:13,320 --> 01:13:17,280 Speaker 1: is our project manager. I'm Barry ridholds. You've been listening 1429 01:13:17,280 --> 01:13:23,480 Speaker 1: to masters in business on Bloomberg Radioa