Speaker 1: From the heart of where Innovation, money and power Colli
Speaker 1: in Silicon Valley and beyond. This is Bloomberg Technology with
Speaker 1: Emily Jay primarily Jack in San Francisco, and this is
Speaker 1: Bloomberg Technology coming up in the next hour. A historic
Speaker 1: day in Washington and for the United States. The first
Speaker 1: black woman is appointed to the U s Supreme Court.
Speaker 1: What this means and how her confirmation could impact rulings
Speaker 1: on tech regulation. Plus we'll get the latest on how
Speaker 1: the SEC might handle Elon Musk's delay in announcing his
Speaker 1: Twitter stake and what the penalty could be. We're also
Speaker 1: at the Kennedy Space Center ahead of SpaceX, is first
Speaker 1: of its kind, all private trip to the International Space
Speaker 1: Station put together by Sam We'll talk with the startup
Speaker 1: executive's chair about how it all came together and what
Speaker 1: it means for the future of space travel. And my
Speaker 1: exclusive conversation with the CEO of eBay, Jamie Ioni, on
Speaker 1: the future of ray commerce in a post pandemic world
Speaker 1: and how eBay It's it. Judge Kanji Brown Jackson is
Speaker 1: now the first black woman to become a US Supreme
Speaker 1: Court justice. The Senate confirmed Judge Jackson with three Republicans
Speaker 1: joining all Democrats in a bipartisan confirmation vote joining me
Speaker 1: out and discussed the significance are Jordan Reuben from Bloomberg Law.
Speaker 1: So Jordan's just how significant is this? I do not
Speaker 1: think it can be overstated. That's exactly right. It really
Speaker 1: can't be overstated. The first black woman on the court,
Speaker 1: the first former public defender. It's truly a big day,
Speaker 1: historic day for the Court and for the country as well.
Speaker 1: What can we expect from her in terms of rulings
Speaker 1: across a rain of issues, So as with prior nominees,
Speaker 1: the name of the game has been not giving any
Speaker 1: hints about how that's going to go, and Judge Jackson
Speaker 1: seemed to be Justice Jackson. She stayed to that script
Speaker 1: like prior nominees have as well. So that's going to
Speaker 1: be a bit of a wait and see. And another
Speaker 1: thing that's going to impact that as well, is she
Speaker 1: just going to be one justice replacing a fellow Democratic
Speaker 1: nominee on a court that's dominated by Republican appointees. So
Speaker 1: as far as the impact in terms of rulings, that's
Speaker 1: something that we're going to have to wait and see,
Speaker 1: but certainly doesn't detract from the historic nature of the
Speaker 1: day itself. She could preside over some potentially momentous rulings
Speaker 1: on tech regulation. You've got Republicans and Democrats both pushing
Speaker 1: for better regulation of tech issues. She was asked a
Speaker 1: couple of times about this during the confirmation hearings. But
Speaker 1: do we have any indication of which way she might lean?
Speaker 1: We really don't, not just with tech, but in other
Speaker 1: areas as well. She really stuck to that script of
Speaker 1: not giving any substantive answers of how she might rule.
Speaker 1: And so that's something that we're going to have to
Speaker 1: wait and see when a case might come up, whether
Speaker 1: it's in tech or in any other area as well.
Speaker 1: All right, well, we'll be watching over the next several decades.
Speaker 1: Bloomberg Laws, Jordan Reuben, thank you. It is now day
Speaker 1: three of Elon Musk on Twitter's board, and there are
Speaker 1: some risks with the SEC looming. Did Musk violate rules
Speaker 1: by waiting to declare the size of his Twitter steak?
Speaker 1: Bloomberg's Mark Bergan here with more on that story. Mark,
Speaker 1: what do we know about whether Elon Musk broke any rules? Here? Well,
Speaker 1: right now we know that his disclosure period he was
Speaker 1: he was meant to disclose his share above five percent
Speaker 1: according to SEC rules, anyone several days passed that before disclosing,
Speaker 1: and course as soon as he has closed, the share
Speaker 1: price jumped up I think from about up above fifty
Speaker 1: of a believe um. And so that that he was
Speaker 1: buying shares at that cheaper rate. And and the assumption
Speaker 1: is the market um would have if he disclosed it
Speaker 1: when when at the five percent threshold, Uh, it would
Speaker 1: have been a much higher price. As we know, Elon
Speaker 1: Musk has had a history of what I'll say generously
Speaker 1: a sort of a casual disregard for the SEC um
Speaker 1: and its rules. And so it's unclear this was intentional
Speaker 1: or accidental. Now as I understand it, being a little
Speaker 1: late with your thirteen G for a passive investor might
Speaker 1: not necessarily stimulate the SEC to bring a case. But
Speaker 1: Elon Musk could be different. Why is that right? And
Speaker 1: then later this week, so after first coming out as
Speaker 1: a past investor, he's since refiled as an active investor
Speaker 1: and then joined joined the board, although he's promised not
Speaker 1: to to go with I'm assuming here. You know, there's
Speaker 1: some good coverage in Washington Posts about this. Certainly, Musk
Speaker 1: has a history with the SEC, and so he probably
Speaker 1: gets a lot more attention than anyone other Twitter board
Speaker 1: number or someone else to pull this off. Matt Levine,
Speaker 1: who probably a lot of the viewers are reading, has
Speaker 1: some great series of columns this week about this, uh
Speaker 1: and how just singular Musk is too. It seems like
Speaker 1: at least flaunting the rules, mat Levine, one of our
Speaker 1: own Bloomberg Opinion columnists, What could the penalty be? Uh?
Speaker 1: I don't know at this point. I mean the SEC.
Speaker 1: I guess it's fair to say they haven't been you
Speaker 1: could call them a little toothless thus far. Uh. And
Speaker 1: it's certainly you know, there's there are talks that um
Speaker 1: for Musk prior run ins that he would uh if
Speaker 1: not be removed from Twitter at least pull back on
Speaker 1: some of his unorthodox tweeting, and that clearly hasn't changed
Speaker 1: what comes next here. Obviously we're all wondering how Elon
Speaker 1: Musk could potentially change Twitter. Yeah, I mean, certainly, like
Speaker 1: you know, there's some enthusiasm from from the Twitter rank
Speaker 1: and file, from from what I've talked, at least our understanding,
Speaker 1: and probably chiefly because they're their share price has gone up. Uh.
Speaker 1: You know, Ellen's in parts Silicon Valley, a pretty well
Speaker 1: respective technologist. He's very passionate about what Twitter is dipping
Speaker 1: its toes into decentralized protocols open source cryptocurrencies. As a reminder,
Speaker 1: Twitter is chiefly an advertising business. Elon Musk famously doesn't
Speaker 1: advertise for any of his companies. Um so that you know,
Speaker 1: he's not bringing advertising expertise, although they have on that
Speaker 1: on the board right now. Uh, he's certainly bringing Uh
Speaker 1: you know, he's a prolific tweeter. He's got a huge following. Uh.
Speaker 1: Twitter has probably outside drama even before this for the
Speaker 1: size of the company, and it doesn't seem like Elon
Speaker 1: Musk is going to limit that drama going forward. Blombarks,
Speaker 1: Mark bergain, thank you. Lots of unanswered questions coming up.
Speaker 1: An exclusive interview with eBay CEO Jamie I Known or
Speaker 1: we'll talk about trends in re commerce and how gen
Speaker 1: Z is giving the platform a second line. This is Bloomberg.
Speaker 1: Online shopping has skyrocketed amidst the pandemic, and now eBay
Speaker 1: is out with its annual re commerce report showing that
Speaker 1: gen Z is becoming a bigger driver of second hand sales.
Speaker 1: Joining us now for an exclusive interview is the CEO
Speaker 1: of Eva, Jamie. I know, Nie Jamie. Great to have
Speaker 1: you back here on the show. So how is gen
Speaker 1: Z boosting this revolution in re commerce? Yeah, well, gen
Speaker 1: Z is really driving it. You know when you look
Speaker 1: at gen Z. Just in two thoe of gen Z
Speaker 1: has bought online and a third of gen Z started
Speaker 1: selling online last year, and re commerce really aligns with
Speaker 1: their values. If you think about you know that that demographic.
Speaker 1: You know, they really want to make sure they're finding unique,
Speaker 1: interesting items. But importantly they really care about sustainability and
Speaker 1: how important that is. And that's why, you know, this
Speaker 1: is so important for that generation and we're really leading
Speaker 1: in to support that. Jen Z is also typically more
Speaker 1: price sensitive. How are they responding with forty inflation? Yeah,
Speaker 1: you know it's not just gen Z, it's really across
Speaker 1: the board. If we look over the last two years
Speaker 1: of people have been selling secondhand goods. When you think
Speaker 1: about high gas prices and inflation, etcetera, he may is
Speaker 1: a great place to turn to to sell your pre
Speaker 1: loved items. You know, the average household has four thousand
Speaker 1: dollars of items that they could sell and less than
Speaker 1: of that is online. And like you said, there's amazing
Speaker 1: values in that pre loved You know, take our certified refurbage.
Speaker 1: If the gen Z needs a new laptop, they can
Speaker 1: buy a SERTI five refurbished product. It comes with a
Speaker 1: two year warranty, thirty day hassle free returns eBay money
Speaker 1: back guarantee, and it's a like new product and importantly
Speaker 1: they're saving a product from going into the landfill. Now,
Speaker 1: you were the CEO of Walmart for many years, you
Speaker 1: were the CEO of Sam's Club dot com. The existential
Speaker 1: question for eBay seems to be just how big a
Speaker 1: market can reselling really be? You know, it's massive. We
Speaker 1: just had our investor day and I talked about a
Speaker 1: one point for trillion dollar trend TAM total addressable market,
Speaker 1: and in fact it's actually going faster than new one season,
Speaker 1: So non new one season is going to have more
Speaker 1: growth over the next four or five years. If you
Speaker 1: look at any category on eBay, sneakers, hand bays, collectibles,
Speaker 1: trading cards, sports equipments were only high single digit or
Speaker 1: low double digit and a trade it So there is
Speaker 1: a lot of opportunity and a huge tam for us
Speaker 1: to go after. When you last reported earnings, though, we
Speaker 1: saw eBay lose active buyers, and I know you said
Speaker 1: at the time it was because of a reduction and promotions.
Speaker 1: What kind of marketing do you think is worth it
Speaker 1: to reverse that trend and where does that number of
Speaker 1: active buyers ultimately settle. You know, we're really leading into
Speaker 1: our enthusiast fires on the platform. This is nineteen million
Speaker 1: enthusiasts buyers who buy SEV the g m V and
Speaker 1: they're not only growing, but they're actually spending more on
Speaker 1: the platform, and they're the heart of what makes this
Speaker 1: platform really healthy. So we're really pleased they're they're going
Speaker 1: across categories. So they may come into let's say our
Speaker 1: Parts and Accessories area, and enthusiasts will buy twelve hundred
Speaker 1: dollars in parts and Accessories, but then they'll go on
Speaker 1: and buy in other parts of the site. And that's
Speaker 1: one of the real special effects of the eBay and
Speaker 1: we're seeing that really across the board in in all
Speaker 1: of our focus categories. You're also pushing for eBay and
Speaker 1: some people may not realize this. To become more of
Speaker 1: a destination for luxury goods. You're authenticating handbags, for example,
Speaker 1: But the perception of eBay, I think for a lot
Speaker 1: of people still might be Ebays like an online swap meet.
Speaker 1: How do you reverse that? Yeah, it's changing massively. You know.
Speaker 1: We started with authenticating sneakers over two hundred dollars and
Speaker 1: it's been an amazing experience. We've been growing double digits
Speaker 1: on the backs of triple digits. We're doing the same
Speaker 1: thing in handbags, We're doing the same thing in luxury watches.
Speaker 1: You know, every day incredible products are sold. We just
Speaker 1: sold a Tom Brady card for two point three million
Speaker 1: dollars on the platform. We sell hundreds of thousands of
Speaker 1: dollar watches on the platform, so it's really changing. And
Speaker 1: things like are certified refurbished program. We put eBay money
Speaker 1: back guarantee in a two year warranty. It's making people
Speaker 1: really comfortable with the platform and consumers are really leading
Speaker 1: in one. Are the bright spots in post pandemic e
Speaker 1: commerce as people return to stores and are there those uh,
Speaker 1: certain categories that you think are fading because people you know,
Speaker 1: can go back to the stores in person and and
Speaker 1: won't come back not really. You know, we think the
Speaker 1: metrics that we're seeing are not really pandemic relating. When
Speaker 1: you look at people selling secondhand goods or buying secondhand goods,
Speaker 1: they're leading in even more. You know, when times are tough,
Speaker 1: people look for the amazing values that we have on eBay.
Speaker 1: In fact, a lot of our sellers on the platform
Speaker 1: start is what I call accidental entrepreneurs. They just needed
Speaker 1: a little bit of money, so they started selling on
Speaker 1: the platform and they turned that into a business on eBay.
Speaker 1: In some cases that's a small business where they go
Speaker 1: on to higher employees, and that's really the special part
Speaker 1: of the eBay platform and what we're still seeing. We're
Speaker 1: seeing accidental gen Z entrepreneurs emerging on a lot of
Speaker 1: social platforms like TikTok and Instagram. How are you or
Speaker 1: can you use some of those platforms to drive gen
Speaker 1: z interest? You know, it's really interesting how much they've
Speaker 1: taken to what we're doing. Take sneakers. We had a
Speaker 1: viral campaign go out on sneakers. We had twelve billion
Speaker 1: views of our last TikTok campaign and two million user
Speaker 1: generated videos just highlighting what's happening with the sneaker drops
Speaker 1: on eBay, the great products that we have and the
Speaker 1: amazing values, and so it's exciting to see how that
Speaker 1: community is really embracing eBay. I know there's been talk
Speaker 1: of an eBay digital wallet, but not yet about accepting crypto.
Speaker 1: Are you thinking about it? What kind of conversations are
Speaker 1: you having about potentially accepting cryptocurrency. We are not accepting
Speaker 1: crypto right now. We just added Klarna. We also take
Speaker 1: after pace, so we now have financing and invoicing options
Speaker 1: on the platform. And when we're really excited to talk
Speaker 1: about is we just started to have a digital wallet
Speaker 1: with a cash balance. So now if you sold a
Speaker 1: couple of products on eBay, you're gonna have that cash
Speaker 1: balance sitting right there to go ahead and find your
Speaker 1: next treasure that you want to find on the platform.
Speaker 1: So that's gonna be rolling out over the course this year,
Speaker 1: and we think we'll be really exciting as it comes
Speaker 1: to payments on the platform. Could you accept crypto someday?
Speaker 1: We're really just focused on one of the best types
Speaker 1: of payments that we need. We're continue to expand them
Speaker 1: on the platform. Uh and go from there, all right,
Speaker 1: Eba CEO, Jamie, I know one. Great to have you
Speaker 1: on the show. Thank you for stopping by. Axiom and
Speaker 1: SpaceX are on track to launch the first all private
Speaker 1: crew to the International Space Station Friday. The four person
Speaker 1: crew scheduled to take off from Kennedy Space Center in
Speaker 1: Florida in the morning, dot with the I S S
Speaker 1: on Saturday. SpaceX is providing the Falcon nine rocket and
Speaker 1: Dragon capsule for the crew. But it's Texas startup Axiom
Speaker 1: that has brought this all together. Their executive chair Cam
Speaker 1: Gafari and joins me. Now, Cam, thank you so much
Speaker 1: for joining us. I'm sure you're very excited about the
Speaker 1: next twenty four hours. You are saying this is the
Speaker 1: first all private mission to the I S S. But
Speaker 1: the Russians have been bringing civilians up there, uh for
Speaker 1: a pretty penny. What makes this different? Well, this is
Speaker 1: the first American U all all American, all private astronauts
Speaker 1: to the International Space Station. And you know, we're so
Speaker 1: delighted that we're able to make this happen, uh and
Speaker 1: bring this, uh, you know all together. How much interest
Speaker 1: is there for private trips and how big do you
Speaker 1: think this market could be? Well, I think the market
Speaker 1: is actually growing quite a bit. I mean, this is
Speaker 1: the first first time that we're doing this, but we
Speaker 1: actually pretty much have sold a extreme mission and pretty
Speaker 1: much a extreme mission, and we're now trying to sell
Speaker 1: some seed on a X four mission. So, um, it's
Speaker 1: quite popular and I'm hoping that if it becomes even
Speaker 1: more popular after a X one mission is completed. And
Speaker 1: obviously the I S S schedule can be complicated, are
Speaker 1: you planning to add many more? Yes? Um, I mean
Speaker 1: we um, you know, just just so you know, Emily
Speaker 1: um ACoM Space is a lot more than just bringing
Speaker 1: private astronaut to the space station. We're actually building our
Speaker 1: own UH space station, AXIOM space Station, which will be
Speaker 1: launched in mid two thousand, twenty four, and it will
Speaker 1: dock with the current I S S UH and will
Speaker 1: be operating jointly with the International Space Station until I
Speaker 1: S S retires about two thousand and thirty and then
Speaker 1: we will separate from International Space Station and will be
Speaker 1: the first commercial space space station operating in orbit. So
Speaker 1: how does this differ from the model that Ross Cosmos
Speaker 1: has been offering for so many years? Yes, So, um,
Speaker 1: Ross Cosmos used to take you know, some astronaut to space.
Speaker 1: As you indicated earlier. What we're doing is this is
Speaker 1: really the first step, the first beginning of many beginnings
Speaker 1: that we're creating at Axiom Space. And it's really a
Speaker 1: first chapter, very historic in in in in human space exploration,
Speaker 1: really with a commercial state space taking private astronaut to
Speaker 1: International Space Station, and we will have many other missions
Speaker 1: along with this. Ross Cosmos took maybe one or two
Speaker 1: in the past to International Space Station. By the way,
Speaker 1: these are private astronauts. They're all going to be performing
Speaker 1: many experiments in space UM and we'll be conducting UM research,
Speaker 1: educational activities, clinical research, all sorts of things. That's very
Speaker 1: different just taking a tourist to the International Space Station.
Speaker 1: So the cost for an Axiom trip to the I
Speaker 1: S S, what's the what's the cost of a seat?
Speaker 1: At this point? Were we really are not at the
Speaker 1: where you talk about the financials at this point. The
Speaker 1: Washington Post reported it was five million dollars and seed
Speaker 1: is that ballpark? Ah? Yeah, that's about right. All right. Um,
Speaker 1: So you know, obviously the space landscape is evolving dramatically.
Speaker 1: In the War on Ukraine has changed things. How is
Speaker 1: the relationship between private companies in the US government changing
Speaker 1: as a result of not necessarily being able to use
Speaker 1: or staying away from Russian services and Russian airspace. Yeah,
Speaker 1: so that's a you know, a great question. I mean,
Speaker 1: you know, a space station and collaborations. Actually, it's the
Speaker 1: international partners has been a great thing and it's been
Speaker 1: going on for over twenty years and it's continuing, and
Speaker 1: it's it's something that has unified, uh, you know, all
Speaker 1: the different countries together and the collaboration has been awesome
Speaker 1: and is continuing to be that way, and we expect
Speaker 1: get to continue at this point. Um. As far as
Speaker 1: the other issues that's going on, that's really between the
Speaker 1: US government, NASA, UH and Russian agency. From our perspective, UM,
Speaker 1: you know, we're we're working with NASA very closely. We're
Speaker 1: working to SpaceX and re expecting the collaboration with Russia
Speaker 1: and Russian Space Agency to continue. All right, Well, we'll
Speaker 1: be watching the launch tomorrow. Of course. Are Ed Ludlow
Speaker 1: will be joining us from the ground of it later
Speaker 1: in the show. Act and co founder and executive chair
Speaker 1: Cam Gafarian, thank you for joining us and good luck. Well.
Speaker 1: Tech regulation is on the minds of lawyers in Washington
Speaker 1: this week. The American Bar Association is holding its annual
Speaker 1: Antitrust meeting. Margaret Investor, Executive Vice President of the European
Speaker 1: Commission responsible for Competition, is one of the special guests.
Speaker 1: She spoke earlier with my colleague David Weston about what
Speaker 1: the ultimate goal of antitrust regulation is to help smaller
Speaker 1: companies grow or protect users. Well, I think as consumers
Speaker 1: we have poorly served if we have to rely on
Speaker 1: the big companies themselves. You know, I just spoke with
Speaker 1: a smaller company the other day and they said our
Speaker 1: payment solution is so much more advanced than what we
Speaker 1: are forced to use with with one of the big companies.
Speaker 1: We want space to be able to show people what
Speaker 1: we can do when it comes to payment solutions. I
Speaker 1: do think that innovation thrive flourish when you have an
Speaker 1: open and consistible market, and that is what we need
Speaker 1: when it comes to technology, uh, to to see it
Speaker 1: move on, not just depending on those who keep the
Speaker 1: gate all right, coming up, closing the gap in tech equity.
Speaker 1: That's what software company Carter is trying to do with
Speaker 1: the help of some celebrities. Will join us next. This
Speaker 1: is Bloomberg. Welcome back to Bloomberg Technology and Emily check
Speaker 1: in San Francisco. What do Serena Williams, Carrie Washington, a
Speaker 1: Rod tan France, Ashley Graham, Steve Nash what do they
Speaker 1: all have in common? Well, they've all come together to
Speaker 1: raise awareness about the power of having equity and how
Speaker 1: it's helped them in their careers. They now teamed up
Speaker 1: with Carter, the valuation software company, to offer a free
Speaker 1: curriculum to help anyone get started. Joining me out is
Speaker 1: the CEO of Carter, Henry Ward. Henry, thank you so
Speaker 1: much for joining us. A lot of people don't understand
Speaker 1: how equity works. They don't understand how to negotiate for equity.
Speaker 1: Why do you think it's so important that people learn
Speaker 1: exactly what this means. We think the world sort of
Speaker 1: in this era of payroll where people rent their time
Speaker 1: for money, uh, and the next era of labor compensation
Speaker 1: will be an ownership one via equity. And it's obviously
Speaker 1: started in Silicon Valley, where uh, you know, it'd be
Speaker 1: weird to work for a tchech company and not get equity.
Speaker 1: It doesn't It's not true in other sectors or any
Speaker 1: other parts of the economy, and so A big part
Speaker 1: of what we're trying to do is educate the world
Speaker 1: about equity as a way to create wealth, uh and
Speaker 1: compensate people. It's weird that people, you know, I think
Speaker 1: in fifty years people think it's crazy that we went
Speaker 1: to work for companies and all we got was cash
Speaker 1: that we got on a payroll system and that was it.
Speaker 1: That we didn't own any of the company that we
Speaker 1: helped build. I think Silken Valley is ahead of the
Speaker 1: world on that and and hopefully the rest of the
Speaker 1: world will follow suit. Walk us through some of the
Speaker 1: lessons that you are teaching in this curriculum. Well so,
Speaker 1: so last year, half a billion dollars of stock auction
Speaker 1: grants weren't exercised by employees. Most if you talk to
Speaker 1: employees about why they didn't exercise their stock auction grants,
Speaker 1: almost always because they didn't know how, they didn't know
Speaker 1: if they should, they didn't know what the implications were.
Speaker 1: So a big part of equity education right now is
Speaker 1: just helping employees understand what equity is, how it invests,
Speaker 1: what it's worth, what the tax implications are, and how
Speaker 1: to think about exercising that and getting liquidity on that.
Speaker 1: It's such an underserved community. You know, so many employees
Speaker 1: work at startups and have no idea what the equity
Speaker 1: or capital structure of the businesses. And a big part
Speaker 1: of helping them figure that out is how do we
Speaker 1: realize that half billion bucks that employees didn't get last year?
Speaker 1: How do we how do we put that back in
Speaker 1: their pockets now. One of the celebrities we've partnered with
Speaker 1: is Serena Williams, and she has said she didn't know
Speaker 1: about equity until much later in her career. She wasn't
Speaker 1: taught this as a child. I actually had an opportunity
Speaker 1: to interview her about her new venture fund a couple
Speaker 1: of weeks ago, and she talked about lessons that she's
Speaker 1: bringing to venture from the tennis court. Take a listen.
Speaker 1: It's really about having a winning attitude and really just
Speaker 1: about understanding that you have to put a lot of
Speaker 1: time into this, you know, and you have to put
Speaker 1: a lot of effort into learning. Why do you think
Speaker 1: financial literacy isn't taught to kids at a younger age.
Speaker 1: It's a great question, Emily. I don't know. When I
Speaker 1: was in high school, I had to take a class
Speaker 1: called medieval history, was required to graduate, but nobody taught
Speaker 1: me how to balance the checkbook. I don't know why
Speaker 1: schools don't teach financial literacy all the way from just
Speaker 1: you know, how how do I plan a budget? All
Speaker 1: the way to you know, how do I evaluate a
Speaker 1: stock auction grant for for a company that I'm going
Speaker 1: to join? UM. I think a big part of the
Speaker 1: private sector and where we can be helpful is creating
Speaker 1: education around that and sharing it with the world. Now,
Speaker 1: Carter is an equity management platform, but you have faced
Speaker 1: your own challenges with equity issues. You were sued by
Speaker 1: a former employee over gender discrimination, and this was employee
Speaker 1: who wasn't in charge of some of your own equal
Speaker 1: pay efforts. I'm curious what you learned from that. Yeah,
Speaker 1: it's it's a really tough one. The story around that
Speaker 1: wasn't that, you know, we may have not been fair
Speaker 1: in gender pay. The story with that we cared a
Speaker 1: lot about equality and we're hypocrites. I think it's really
Speaker 1: tough when you do these things. UM. You know, obviously
Speaker 1: we think we're not only a champion of equity, but
Speaker 1: we practice it at home. People are allowed to disagree
Speaker 1: with that, and we'll figure it out. We're a couple
Speaker 1: of years into this will probably a couple of years more.
Speaker 1: CARDA meantime aggregates data about private companies valuations, cap tables,
Speaker 1: and in this very rapidly evolving macro environment higher inflation,
Speaker 1: we're seeing startups doing down rounds. I'm curious what data
Speaker 1: you're seeing in terms of valuations being under pressure and
Speaker 1: how that will translate into equity for employees. Yeah, it's
Speaker 1: some fascinating to watch. Obviously, there's this great price resetting
Speaker 1: that's happening in the public markets. Uh. You know, private
Speaker 1: markets tend to tend to lack the public markets, largely
Speaker 1: because private private company CEOs don't have to enter transactions
Speaker 1: that they don't want to, and so once they see
Speaker 1: repricing happening in the private markets, they don't necessarily reprice
Speaker 1: their companies. They'll just delay a financing uh and and
Speaker 1: wait till markets uh uh correct in their favor. I
Speaker 1: think what's happening now is we're we're seeing, still at
Speaker 1: the early in mid stages, just record numbers of deals
Speaker 1: being done, so that hasn't slowed down at all. In
Speaker 1: the late stages, we're seeing some of these deals get
Speaker 1: pushed out, but we haven't seen a repricing happening. You know,
Speaker 1: last year we did about seven billion dollars of secondary
Speaker 1: liquidity via car to x for employees. This year will
Speaker 1: probably do tend to twelve billion. Uh. And we haven't
Speaker 1: seen repricing happening in the late stage growth market, but
Speaker 1: we have seen deals get pushed further down as CEOs
Speaker 1: are waiting to see if they can reprice their stock
Speaker 1: in a in a way that they want to interesting.
Speaker 1: All right, hen Rewards, CEO of Carter, thank you for
Speaker 1: joining us and um spreading this idea about financial literacy
Speaker 1: when it comes to equity. It is time now for
Speaker 1: our crypto report, with robin Hood being the latest firm
Speaker 1: to support transactions on the Lightning Network, which is promised
Speaker 1: for Bitcoin believer is with higher volumes of payments, especially
Speaker 1: across borders. Are crypto contributor Stionnale Bossik here with more
Speaker 1: see Emily. There's certainly been a lot more talk about
Speaker 1: the Lightning network here and Lightning Labs is really the
Speaker 1: biggest company that's developing software that's powering the Lightning network.
Speaker 1: And you know, let's talk about what it's used for.
Speaker 1: It's used at places like Robin Hood is facilitating the
Speaker 1: Lightning network, and lad Tene is actually a investor himself
Speaker 1: recently in Lightening Labs, Starbucks, Pizza Hut, Twitter. It's also
Speaker 1: when you look at all the payments that are happening
Speaker 1: in El Salvador, the Lightning network is a big part
Speaker 1: of what's helping make that possible. So to talk about
Speaker 1: this more is Lightning Lab CEO, who develops the software
Speaker 1: that powers the Lightening Network. She's joining us live now
Speaker 1: from Bitcoin twenty two in Miami, Elizabeth Stark, Thank you
Speaker 1: so much for joining us. Elizabeth. You know you have
Speaker 1: this new funding round that has come from Reverend Howard
Speaker 1: valor lad ten of others. What does this actually help
Speaker 1: you do and what does this new protocol Taro actually
Speaker 1: do in terms of helping making bitcoin transfer as much easier.
Speaker 1: First of all, thanks so much for having me. Uh
Speaker 1: and greetings everyone from Miami here or the Bitcoin Tent Conference.
Speaker 1: Um So, it's been quite a week for us in
Speaker 1: the bitcoin and lightning community. On Tuesday, well, we announced
Speaker 1: are seventy million dollar Series BE fundraise for my company,
Speaker 1: Lightning Labs. We're building infrastructure for the Lightning Network and
Speaker 1: what Lightning does is enables people to send instant, high
Speaker 1: volume transactions for low fees over Bitcoin. Lightning is a
Speaker 1: software layer on top of Bitcoin. But we also announced
Speaker 1: in your technology we've been working on called Taro, which
Speaker 1: enables people too in the future send assets, stable coins,
Speaker 1: and really any other currency that out there, potentially using
Speaker 1: Bitcoin as a global monetary network. So we're really excited
Speaker 1: to be working with these investors to understand this long
Speaker 1: term vision and mission to bring financial access to the world. Now,
Speaker 1: financial access? How quickly, Elizabeth, do you think that this
Speaker 1: could start to spread among other comfent countries on aside
Speaker 1: from El Salvador that are looking to adopt Bitcoin at
Speaker 1: a greater rate as a currency. Bitcoin is global, the
Speaker 1: Internet's global, and really what we're seeing is Bitcoin enables
Speaker 1: the Internet of money. Today, I can embedded photo and
Speaker 1: any application on the Internet, you know, Twitter, what's up, Email,
Speaker 1: all of those, But why can't I easily send money
Speaker 1: or value globally natively embedded on the Internet. So the
Speaker 1: way I think about Lightning is it enables two kinds
Speaker 1: of use cases. One use cases that were previously possible
Speaker 1: and to access for those that previously didn't have it,
Speaker 1: and this is a big global issue and an international issue.
Speaker 1: We look at a country like Nigeria, seventy percent of
Speaker 1: the population is thirty or under, Well, what do they
Speaker 1: all have mobile phones? But many of those people may
Speaker 1: not have access to a bank account or something like
Speaker 1: a visa or the traditional financial system. So the way
Speaker 1: that I think about it is, this technology will really
Speaker 1: enable people across the world to tap into the Internet money.
Speaker 1: What the Internet did for access and knowledge and information previously,
Speaker 1: because something like Wikipedia, Bitcoin and Lightning are doing for
Speaker 1: access to money and financial services. Elizabeth. Mainstream awareness of
Speaker 1: cryptocurrency and bitcoin has shot up like a rocket over
Speaker 1: the last couple of years, but there's still such a
Speaker 1: long way to go to clarify confusion around digital assets.
Speaker 1: I'm curious what the themes are at Bitcoin Miami this year.
Speaker 1: What is everyone talking about. What are the you know,
Speaker 1: most hyped issues and the biggest problem issues? Great question, um,
Speaker 1: I think adoption is huge right now. Right the way
Speaker 1: that I think about it, the vast majority of the
Speaker 1: users in the future will not even know that they're
Speaker 1: using to see the Bitcoin and Lightning network. They wanted
Speaker 1: to just work. They want access broadly. In the cryptocurrency space,
Speaker 1: we see a lot of technologies, but some of them
Speaker 1: are in solution in search of a solution, as opposed
Speaker 1: to think about real problems for real people. So what
Speaker 1: I'm being now is a focus on real use cases,
Speaker 1: on real adoption, and the global element. I was just
Speaker 1: chatting with developers today from places like Nigeria, from places
Speaker 1: like uh Guatemala, So this is a global community. And
Speaker 1: this is also what I think distinguishes the Bitcoin community
Speaker 1: from some of the other UM say projects that are
Speaker 1: out there with the focus on actual adoption and real
Speaker 1: use cases as opposed to speculation. UM shout out to
Speaker 1: my friend Lynn Alden who has written great macroeconomic research
Speaker 1: and studies Bitcoin of Lightning, and she talks about the
Speaker 1: utility to speculation ratio and a Bitcoin and Lightning are
Speaker 1: very utility oriented as opposed to merely speculation. Jack Dorsey
Speaker 1: is one of your backers. As I understand it, What
Speaker 1: is it like working with Jack? I know Twitter was
Speaker 1: an early adopter. Jack has been incredible in terms of
Speaker 1: believing in Bitcoin, understanding its value as the Internet's native
Speaker 1: monetary network. He's tweeted about Lightning, he participated in this
Speaker 1: thing called the Lightning torch from people back in the
Speaker 1: day sent and received light transactions globally. And we're really
Speaker 1: grateful to have him on board as an investor and
Speaker 1: as a believer. And one thing about Jack is he
Speaker 1: deeply believes in this mission and sees the potential for
Speaker 1: the Internet of money and sees the global aspect of
Speaker 1: tapping into this and really expanding access for everyone run world. Well,
Speaker 1: it's interesting because Twitter was such an early adopter of this.
Speaker 1: It really was a signal that the creator economy could
Speaker 1: also use bitcoin in a greater way. What have you
Speaker 1: learned from the adoption of Twitter to the Lightning network
Speaker 1: and what do you expect now that Robin Hood and
Speaker 1: other big companies are also adopting it. So what we're
Speaker 1: learning is this technology is global and there are so
Speaker 1: many people around the world with untapped talent who need opportunities.
Speaker 1: And Okay, so let's say there's somebody in Argentina or
Speaker 1: India who as a creator or a coder. Well, if
Speaker 1: you want to send smaller values tapping into the global
Speaker 1: monetary system, the fees will exceed the amount that you
Speaker 1: want to send. So what this technology does, It's so
Speaker 1: powerful is it lets you do what we call streaming
Speaker 1: SATs or stosis, the lowest de nomination of bitcoin. Let
Speaker 1: me see this in use today with podcasts. There's some
Speaker 1: great podcasting two point applications, many thousands operating and Lightning
Speaker 1: you can pay per second, their media aspects where you
Speaker 1: can pay small values forward saying articles, their social networks,
Speaker 1: chat apps, those are all operating over the Lightning network
Speaker 1: like Zion and Sphinx. So what we're seeing is a
Speaker 1: lot of people around the world are not able to
Speaker 1: tap in its early days, don't get me wrong, to
Speaker 1: the capacity to earn and to be compensated for their
Speaker 1: creative work as opposed to in the legacy system where
Speaker 1: the fee would actually be higher than the the amount
Speaker 1: of something. But the fees or something I want to
Speaker 1: get your opinion on here. There's a lot of mistrust
Speaker 1: of the typical financial system, the big banks, credit card
Speaker 1: companies that is emerging over there at bitcoin. When you
Speaker 1: look at the fees that are being charged for cross
Speaker 1: border transactions, for transactions at all, do you think that
Speaker 1: the financial system as it exists now has failed US
Speaker 1: law utually? Yes? So why today do I need to
Speaker 1: send a paper check here in the U S. Why
Speaker 1: do I need to wait days for an A C
Speaker 1: H payment to go through? Over and app like Venmo
Speaker 1: in the US, we're actually behind. We see in emerging
Speaker 1: markets they have faster systems and they can settle far faster,
Speaker 1: but when it comes to interoperability and the global element,
Speaker 1: there's still not a way that has been widely adopted
Speaker 1: by billions for people to send you know, the way
Speaker 1: they're sending data and messages on the internet today, for
Speaker 1: them to send value and money. So I do believe
Speaker 1: you have a number of legacy players who is not
Speaker 1: necessarily in their interests to adapt and to build these new, faster,
Speaker 1: low fee technologies because they're making a lot of money
Speaker 1: off of the high fees they're charging. Now enters something
Speaker 1: like lightning. Today you can send less than one cent
Speaker 1: on lightning for a fraction of that in a fee. Right.
Speaker 1: We see people in Starbucks in El Salvador spending a
Speaker 1: couple of dollars on a coffee today and the fee
Speaker 1: is a fraction of ascent. So the technologies were building
Speaker 1: like this new Taro protocol where you can then send
Speaker 1: assets stable coins over Lightning opens up access to people
Speaker 1: around the world. Nobles opens up to access to merchants
Speaker 1: who want to be able to receive but don't want
Speaker 1: to pay, you know, several percentage points plus a base FIA.
Speaker 1: Al right, Elizabeth starting, Elizabeth, thank you for the energy
Speaker 1: and passion that you brought to this conversation. Co founder
Speaker 1: of Lightning Labs as well as Bloomberg's own Shaun, thank
Speaker 1: you so much. Looking forward to bigcorinizing the world with
Speaker 1: Lightning all right. Back now to SpaceX is all private
Speaker 1: mission to the I S S. The mission part of
Speaker 1: a bigger picture effort to have future private space stations
Speaker 1: in orbit for years to come. Bloomberg's ad Ludlow spoke
Speaker 1: to NASA's head of Human space Flight, Kathy Leaders, about
Speaker 1: where the U. S. Space Agency fits in to the equation. Well,
Speaker 1: you know, part of our job, I feel like, is
Speaker 1: to figure out how to do it and then make
Speaker 1: sure that we're working with companies and other people so
Speaker 1: that they can learn from us. And so that's really
Speaker 1: what's been going on over the last you know, two
Speaker 1: or three years, is that we've been working with these
Speaker 1: different companies, having them do our lessons learned, actually allowing
Speaker 1: them to use the contractor that we use for training
Speaker 1: and and continue to bring industry in on the lessons
Speaker 1: and the fifty sixty years of space flight that we've
Speaker 1: had so that they can do it themselves. So you
Speaker 1: run space operations which includes humans NAS restronauts going from
Speaker 1: a TINIS National Space Station. When do you get out
Speaker 1: of this? What is the actual mission give NASA? I'm
Speaker 1: hoping it gives a whole bunch of us new rides
Speaker 1: in the future and and in twenty thirty years, guess
Speaker 1: what I'm able to do science and research and technology
Speaker 1: development on space stations that I don't have to invest
Speaker 1: in that I'm buying a ride in. You know, what
Speaker 1: we're thinking about is our future. We're thinking about LEO
Speaker 1: economy for the you know, the next hundreds of years.
Speaker 1: And this is our first step for us too in
Speaker 1: the future, be able to buy a laboratory in the sky,
Speaker 1: time on a laboratory in the sky while we're investing
Speaker 1: in going to Mars and Either and even farther out.
Speaker 1: So it's an idea that the private sector kind of
Speaker 1: takes the cost b and of what's needed to be
Speaker 1: in lower forll BIT and you deploy resources to other
Speaker 1: projects that's basically what you're saying. I actually feel like
Speaker 1: it's about the government had a vision when they set
Speaker 1: up NASA, and one of the parts of that vision
Speaker 1: was us to enable our commercial economy and the launch
Speaker 1: economy and the space economy. And so what we've been
Speaker 1: doing is figuring out how to do things and then
Speaker 1: when we feel like industries at an advanced enough stage
Speaker 1: to be able to do it, then we hand that
Speaker 1: piece over, allowed there to be an economic value for it,
Speaker 1: and then move on to the next thing. This is
Speaker 1: really an important idea. When NASA was set up, NASA's
Speaker 1: had a human spaceflight Cathy leaders there. I don't want
Speaker 1: to bring in are at Ludlow now is just a
Speaker 1: few miles from the launch pad for an update on
Speaker 1: how it's all going to go down and what are
Speaker 1: we expecting from this launch tomorrow. Well, we're still expecting
Speaker 1: it's going to go ahead. For one thing. I mean,
Speaker 1: you see it around me. It's pretty stormy here in
Speaker 1: Florida and Cape Canaveral, and there's a lot of concern
Speaker 1: that the mission will be impacted by that because it's
Speaker 1: an instantaneous launch window. That means if they have a
Speaker 1: degree of uncertainty around being able to launch at that time,
Speaker 1: they'll scrub or postpone because the trajectory of the Falcon
Speaker 1: nine booster rocket with the catch on top needs to
Speaker 1: match up in a way that it can reach the
Speaker 1: I S S on that trajectory. So there's confidence. You know,
Speaker 1: we've spared from a lot of Nastro officials today, a
Speaker 1: lot of Axiom and SpaceX officials. That will happen, but
Speaker 1: there is a backup window on Saturday morning. Is Elan
Speaker 1: going to be there? Noe's been busy with Twitter lately,
Speaker 1: but are we expected exciting It's a it's an interesting question.
Speaker 1: He has been at crew missions before, right where SpaceX
Speaker 1: have taken NASA astronauts up to in special space station.
Speaker 1: But he doesn't come to every flight, every human space flight.
Speaker 1: He came for inspiration for for example, and met the
Speaker 1: crew there and on their return. So I'm not quite
Speaker 1: sure if he'll be in the room, although he's got
Speaker 1: a private jet so he could go from Austin very
Speaker 1: early to Friday morning to where I am now. Well,
Speaker 1: I'm sure he'll be tweeting and we can count on that. Meantime,
Speaker 1: things on the International Space Station are ted's given the
Speaker 1: conflict in Ukraine, how has the game changed? Yeah, And
Speaker 1: I spoke to CAFEE leaders about that as well, and
Speaker 1: she pointed out that, you know, space has always been
Speaker 1: a pretty peaceful place between the Russia and US, no
Speaker 1: matter what's going on down on Earth. The reality is
Speaker 1: that relations between the United States and Russia are not
Speaker 1: good right now, and that has impacted the space relationship.
Speaker 1: You have the head of COSMOS, the Russian Space Agency,
Speaker 1: say just on Saturday that the economic and trade sanctions
Speaker 1: that are in place on Russia are damaging to the
Speaker 1: relationship and if they're not lifted, we could even see
Speaker 1: Russia pull out of the I S S agreement. You know,
Speaker 1: Russia and the US have been in partnership with the
Speaker 1: International Space Station since and it went into orbit in
Speaker 1: two thousand. There are three Russian astronauts or cosmonauts on
Speaker 1: the I S S right now, and I asked NASA, well,
Speaker 1: does that mean the Axiom crew can go and say
Speaker 1: hello to them? Because for one of a better explanation,
Speaker 1: there's a sort of US European side of ISSS and
Speaker 1: a Russian side. And what I was told by CAFEE
Speaker 1: leaders is the Axiom crew could go and meet the
Speaker 1: Russian astronauts if the Russians choose to invite them, but
Speaker 1: that's at their discretion. Well, we do know now that
Speaker 1: a seat costs about fifty five million dollars. Accident confirmed
Speaker 1: that earlier in the show. Not necessarily economical for most people.
Speaker 1: And I assume that cost will come down someday. Yeah,
Speaker 1: you know, and also remember the big cost of launches kerosene.
Speaker 1: And with everything that's happening with oil supply right now
Speaker 1: and oil products, that's a factor. SpaceX is race prices
Speaker 1: on his other products because of inflation, you know, in
Speaker 1: terms of what they charge satellite operators to go on
Speaker 1: the transport emission. But yeah, it's a tough one to say, uh,
Speaker 1: on the economics of it. It's a similar price what
Speaker 1: act SpaceX sorry charges NASA perceive fashion nots though, so
Speaker 1: it is comparable, all right, Ed Ludlow at Cape Canaveral.
Speaker 1: Ed will be at the Kennedy Space Center for the
Speaker 1: launch over the next twenty four hours. Of course, if
Speaker 1: it happens ed, we'll be watching your coverage. Thank you.
Speaker 1: That does it for this edition of Bloomberg Technology. We
Speaker 1: will be back tomorrow. With that space X mission from
Speaker 1: the Kennedy Space Center will be space station will bring
Speaker 1: you all developments. Also, don't forget to check out our
Speaker 1: new podcast. You can find it anywhere you get your podcasts.
Speaker 1: I'm Emily checking in San Francisco. This is Bloomberg Day.