but live in sausalito california, welcome to a special edition of "bloomberg west" where recover innovation, technology, and the future of tech. are talking about everything from the future of drones to the future of your kitchen to the next big thing. we are talking to cory johnson and the conference just kicked off. what is the most exciting thing you've heard so far? >> i think we have some people with really big ideas and they are ready to apply them somewhere else. people will walk away from this,

and also from the show today as well with some really big ideas on what the next thing might be. it is a way to take it from one industry to the next. and it is a beautiful day. but it really is. with the golden gate bridge behind us, one of those people is from san francisco university. member at a board cisco and google. winky for joining us, john. x delighted to be here. >> how does it help to be an engineer when interested in technology? >> it helps a variety of ways. they consider themselves problem solvers. how do they make the world better by solving problems echo -- problems? the other piece is because of being an entrepreneur, i'm willing to try new things and moving to -- new directions.

you also see things on the front line. how do you bring that into the university? >> we are always thinking about how to change what we do, how to change what we learn, so that students can learn in new ways, whether it is online learning or more experiential kinds of opportunities, which are important, too. you do not learn to be an a fewreneur by doing lectures online, but by really doing. they are all stars in the valley, right? but they still do taught -- they still do auditoriums. do impute in heavy and engineering heavy -- computing heavy and engineering heavy companies. i feel like we are in a different era where it is not

engineers leading the way as much. do you get that sense? >> you are right in that there is a lot more creativity, new apps, new business models, that demand as much on the creativity side. certainly, they have technology beneath them, but the basic insight is not technology. look at ebay, for example. interesting. ester dyson was on the panel and she had an interesting perspective. everyone wants to be a ceo. no one -- everybody wants to be a chief and no one wants to be an indian. >> i've told a lot of young founders that i've talked to, you are not ready to be a ceo. i know you are the visionary. become a chief technical officer. learn a little bit more. you've got to learn skills you don't have. >> what is the thing? >> how do you hire a great

salesperson? that is something i did not know and i learned the hard way by doing and figuring out. some of the guys i hired were not the right sales people. you learn those important skills. negotiating deals, how to tell if a deal is a good deal or a bad deal. >> everybody wants to start a company these days. what do you tell the kids who say, "i'm going to drop out. i've got an idea." >> first, i tell them, tell me why it is so much better than is other ideas out there and it protectable? look at how many photo sharing sites there are. sure, instagram got ahead, got a community and were successful. sharedere 100 venture photo sites that are going nowhere. you got to think about how the idea is unique and different and you can get ahead with it. >> stanford is called the

startup university, sometimes positively and sometimes negatively. fosteryou balance and innovation with education? i'm sure you have rules around that. >> yes, we have rules around it. we try to encourage the students to finish their degrees first, because that is the foundation to them being successful. there are few ideas that are so radically innovative that they demand dropping out from your degree. if it is a great idea, it will be a great idea in a year and a half when you finish your degree. if you are mark zuckerberg, go do it. but those are rare. was a terrible story in the "new york times" if you would go about stanford even compared to harvard, and i'm sorry.

i know you went to harvard. but i wonder, educationally, with the success that stanford has had on the world of technology, what has changed education and what types of things do students have to learn that maybe you were not teaching before? >> there is a big shift and a lot of growth around experiential learning. for a lot of us, that comes out of our design school. it encourages breakthrough thinking, encourages the development of creativity. and something called creative confidence. have the confidence to do something creative where you will be subject to critique and criticism, but learn how to do it and do it well. we teach that. >> what do you think about online learning and all of these companies that are trying to give a college education online? will that replace a traditional degree? >> i don't think that will replace a traditional atidential degree, whether stanford or harvard or berkeley.

it is going to take over continuing education. that is the best way to educate professionals. it will probably change the mba. i'm not sure the two-year mba thing to do.est give largelikes to electors. the students are not engaged and they don't like it. lectures. the students are not engaged and they don't like it. we can do that online. some e-mails are not worth repeating that he wrote while at stanford. the stanford provost responded. i'm curious about your take away and if there's anything that you will do differently to make sure that does not happen. they idea is we need community to rise up against that kind of e-mail.

whether it is in the fraternity that this young man belonged to, or in another setting, we need people to stand up. which means young man -- young men stand up when a young man sent out these e-mails. it's not just about women standing up, but young men standing up and saying, that is disgraceful and inappropriate. but is this endemic of the greek system in any way? how does stanford treat the greek system different? >> it is a relatively small piece of our existence. extent,ink to some women are a civilizing influence among men. they really are. [laughter] he would never have sent that e-mail if he thought one of them was going to a young woman. he would not have had the courage to do it. situation be in that where we have the cultural sensitivity. ,> you mentioned it on stage the self driving cars and being on the board of google. you think self driving cars are already driving better than the

average driver. you say, 10 times better. there.ink we can get if you take all set of drivers out there, i think we can get there. whether we need to be 100 times better, or just 10 times better than the best 10 drivers -- the 10 best drivers, that is where we are headed. >> thank you so much for joining us here on a beta full day. day.beautiful coming up, we are going into the kitchen to talk about the future of cooking. >> michael kier will be here how socialg about media has changed his business. >> very excited about that, coming up. ♪

>> welcome back to "bloomberg west," a special edition from sausalito. we are talking about the next best -- next big thing. we are talking about the fusion of technology and cooking, or maybe social media and cooking. the kabbalahis at point pinching -- kitchen. two great chefs here in san francisco. you guys were nominated for best new restaurant. to socialtribute this media. >> it is amazing, being able to have a one-on-one conversation with your potential guest customer or viewers. they want to know what is going on in everyday life. this is very popular. we have 300,000 twitter followers. over 100,000 on facebook. and thousands on instagram. and see goch a dish

from here to the menu. >> i'm a big fan of food. but if the food what really draws on social media? -- is the food what really draws on social media? >> two things. [indiscernible] but the rest is about food. the shrimp goes into the batter. normally, it is a little thick and dense. our social media folks like to see how you take something and do it in a unique way. get -- this batter gets gassed chart. this is chickpea, vodka, and smoky back break up.

paprika. our customers, or potential customers want to see how it works. people get freaked out about technology. cook lovewho love to to buy new stuff. >> would love to buy new stuff, but we just don't know how to do that. -- how to do it. that the volume we have added. would have lightened it up. normally, we would be shooting it and tweaking it in real time tweeting it in real time. >> and you have instagram followers, too. >> yes, and you try not to burn this, if possible.

>> and look at you. now he's cooking. .> that goes in the oil the shrimp is cooking inside there. we are able to shoot this and tweeting it back. today, we are going to have this recipe up. we are paring a wine with it. is how a chef thinks about taking a dish that everyone understands, but presented in a way they might not imagine. show them a technique with what we are doing. and then we are talking about what we can drink with this. social media, just chatting with someone out there, -- >> and people are coming into the restaurant who followed you on social media and don't live in san francisco and are visiting napa? a wife and husband who are

celebrating an anniversary, and maybe there from wisconsin. once you have them on social media, then you have a relationship. they see me celebrating things. my daughter's birthday party. we are humans to them. they see me doing things that they might not normally see me do. >> emily, we are going to finish this. -- and you think that helped to get the nomination last year? >> absolutely. and the sum we are going to do with our white wine. -- and this is something we are going to do with our white wine. follow with a social fundraiser, in order to do some social good. >> emily, we are eating. >> cory johnson, our editor at large with famed chef michael chiarello

. coming up, we will talk to the cofounder of paypal. he will talk to us about his next big thing. ♪

>> welcome back to a special west" live"bloomberg in sausalito. i'm emily chang. startup announced $45 million in funding. what is the firm?

the ceo joins us along with cory johnson. max, you have been in stealth mode for a couple of years. >> we feel like we have finally nailed it. >> what is it? >> today, we are launching the very simple, but extremely convenient way of paying for purchases at the online point-of-sale and split them into several installments. if you do not trust or credit card, or if you can calculate that the api is way too high, we can make it simple for you. we can split it into three payments across three months, or six, or whatever, and we can make it transparent. >> anybody got partnerships with retailers. >> we do. >> is there an application? >> no, you fill out a couple of basic pieces of information, which are name, date of birth, and mobile number.

in less than one second we will take the risk and stand by the hand -- standing in the transaction with the retailer immediately. >> what is the work? it sounds like you have two big technology go problems. one is to might to get the payment to the place. the other is understanding the credit risk. >> exactly. the latter is far more important. there are a lot of payment companies. a firm is not that. we are changing the way risk pricing and underwriting happens. ourselves as something that should be invented in the past couple of days -- years. but few are taking on the risk yourselves. what makes you comfortable doing that? -- >> but you are taking on the risk yourselves. what makes you comfortable doing our team are of

the young acolytes of the industry.d payment >> young acolytes. >> and this is a result of brainstorming and coming up with this? >> yes, we literally asked ourselves, if we dug deep, get to the very core of the banking infrastructure -- >> the real banking structure, the definition is getting a credit card payments. >> yes, why hasn't someone taking it on? they didn't have to. there's plenty of money and plenty of profit. that's a good place to disrupt them. >> give me some data. all -- fica is all about you, six to 10 months to years. we look at where your costs are and decide the risk.

>> give me an item that we would not think of as something that defines who you are as a buyer in your risk per file. is a mattress. that is something, a classic thing that someone who just graduated college or needs to move to a new city would buy. it puts just enough of a dent in the cash flow that they are strongly questioning whether i on on this -- put this 819.99% credit card? 19.99% api credit card? and that is a low one. or do i sleep on the floor? >> you decided to basically work full-time on a firm --affirm. you are looking for someone else to run it, but actually --

>> i'm a glutton for punishment. two things happened. i knew i was able to run something. and initially, this is the curiositymy many projects. there's something thrilling about coming into work every day and working on something so structured. performanceon key indicators. it is all about the team. this is an amazing group of people that i work with at paypal and a bunch of other young, brilliant people that are not just motivated by making money. we are at the center of this attempt to bring back this trust and honesty and transparency into finance. we are super excited to be a part of it. to -- max levchin,

stay with us. don't go away. ♪

>> you are watching a special edition of "bloomberg west" where recover innovation, and the future of technology. i'm emily chang. we are in sausalito and talking about health care and innovation in health and fitness tracking devices. joining the our editor at large cory johnson, and abbott fitness tracking -- >> yes, i'm well tracked. dyson with us now.

also, max luncheon -- max levc hin. what are you wearing on your wrist? >> i am focused on health. this is a nike go band. >> i'm down to one device. the nike band will be discontinued, but the business goes on. from misfite wearables, which max is involved with. and another for when you sleep. and finally, this is the basis, which have low memory. >> is that your memory that is low? or the watch? >> i'm doing so much stuff, i cannot keep up with it all. >> to does it help you? be candid, i'm already a fitness nut. one of the issues around these things is, how much difference

do they make to the middle? insurance company, can you actually improve the -- of a large enough population that it matters you cry think they can, but they have to get better. >> you are a cyclist, and i know you have not -- you are not wearing anything today, but i know you have experimented. >> i think my lack of wearables today is a message, though i did it plan it this morning, that don't have to remember to put a power meter into my bike. it is built into the crank. every time i pedal, it tells me with a microsecond resolution. the day that health insurance can start pricing risk accurately and sending people in before we have a heart attack, -- that is after our

bath mats start telling us what our wait is doing. the dumbest pricing invariable? >> it is the biggest amount of money with an interest in you being healthy. the biggest challenges come if you ask an insurance company what the average lifespan of their customer, they don't want to tell you. that is their actuarial secret sauce. but if you can keep these people for a long time, then you benefit from them being healthy, because you don't need to provide them health care. you are healthy. >> is having measurable health that you can track a good thing? >> i think it is important to have control over your help. the trade-off is correction and prevention. evenly, i don't mind someone, let alone my computer, knowing what my weight is doing. it is of ultimately going to

keep me healthy. >> the things that people share and don't share, i think one of the interesting things is how people use this. i think -- i will share my data with some people. >> going back to, is it good to be tracked? we track our cars and our equipment. why not track our bodies? if you look at the long-term sustainability and the environment, why not instrument ourselves? it matters a lot more. some people care about privacy. some -- others care more about whether they will get fired or their premiums rising. maybe your premiums should rise if you costs society a lot more. that is the stuff that you do voluntarily, not whether you are likely to get some disease. >> apple just rolled out health kits. samsung is trying to do the same

thing. is there one company that can make this more mainstream? or do you think it will come from the outside? >> the most exciting stuff is always going to come from startups. we are able to take more crazy risks. we have no brand to lose. happens inovation small, but impactful chunks. i think apple did a great thing by essentially putting a stamp of approval on the whole market by saying, hey, we will be behind these efforts. >> how optimistic are you about an apple i watch? >> i think it will be beautiful. >> i don't really care. i care that it happens. and i think max is right. it will be a startup that we approve of on the one hand. on the other, we need more long-term money. the laguna has our long-term interests at heart -- the only thing that has our long-term interests at heart is insurance

companies. even we do not think long-term enough. if you order them online, you order more healthy food. you know the old saying, don't go shopping when you are hungry -- it is really true. but again, that skews up the middle class. that is one of the challenges. how do you spread this? food is not just what you do. it is what you eat. >> how do you look at the concept that the driver is not really just the individual? for me, the times when training when it isi found is measured. but that is me. but what you are really talking about is a different marketplace and a different device. >> i'm talking about a different business model that thinks long-term about how to keep people healthy. to make thate happen? >> i'm making it happen. i have a startup that is a

not-for-profit that is trying to do that. >> what are the exciting things you are invested in right now? >> 23 and me is one. had huge issues with the fda. will he get beyond the red tape? >> it is going to get through that. i have no problem with regulation. we want to keep that. sell snake trying to oil on the basis of your genome, saying you should do x and y. we did not provide the fda with all of the data they wanted, and we are in the process of doing that. that will be sorted out. the broad there is environmental stuff, like the food you can buy, and then there is your specific genome. >> i have a relatively prolific portfolio in the health space. a huge fan of misfits.

i work with it frequently. side, given my background, there is a company out of new york that has a cool way of making data around dna and other things more accessible. it is going to be revolutionary. the biggest problem, i think, in the health world at this point is not lack of information. there is plenty. it is lack of control, portion ability. i'm just getting into helping his company solving that. there is another company that has a little different approach to the higher-level data. it is sort of a human to the ipaa records.man h

>> it feels like in terms of timing, just quickly, that we are very close to becoming more mainstream. i would not say mainstream now. obviously, that is what we are discussing. it seems like we're closer to greater facility. >> people have apps. >> the most important health investment is glow, which helped to have a baby naturally. >> and then you get baby apps then you monitor what your baby is eating and how often you need to change the diapers. >> maybe that is the change in the behavior. >> writes. levchin.dyson and max thank you both. coming up, we will be talking about the private space race. we will talk to a trained cosmonaut.

plus, amazon is looking to use drones for delivery. ♪

>> welcome back to a special edition of "bloomberg west" live from the bloomberg next big thing summit in sausalito, california. i'm emily chang. youx and richard branson and virgin galactic, but there are a lot of players -- you know spacex and richard branson and virgin galactic, but there are a lot of players in the commercial base light arena. -- space flight arena. our guest is even a trained cosmonaut. elon musk and richard branson do not have "cosmonaut" on their resume. you have that one on them. you as athat help space investor?

>> it makes it more real. a lot of people think of space as being exotic and intangible. my dad was a physicist, and .till is an astronomer for me, i'd took it for granted as a kid. and now, i take it for granted. what you actually learning cosmonaut training is very basic. and fixinging, meals, and how to keep the oxygen and temperature of your body at appropriate levels. i have been weightless seven or eight times and i probably will go up sometime likely next year. been an investor and board member. i get to do the last flight before we go commercial. >> tell me what that is like. >> it is a company deserted by a guy named jeff grayson, who was an engineer at intel.

it is very concrete. it is not the glamour of space. it is building the spacecraft that works. competing in the sub orderable -- suborbital spaceflight industry. there are those of us that want to be first. and there are those of us that want to make sure this thing is perfect before we go. both of us,of, trying to create a real market. virgin is more on the luxury side and we are on the extreme sports side. >> public funding has been cut. why is it important to explore space? there are plenty of problems here on earth. >> why was it important to discover america? i don't believe russia should own the world. and i don't believe the u.s. should own the world. but i think humanity should own the universe. is actuallyars

really important in terms of having a backup planet, in terms of learning how to create an atmosphere. we have kind of messed up the one on earth. maybe we can experiment with synthetic biology. it is not just rockets. it is biology, in, making pharmaceuticals. because in zero gravity, crystals grow much better because they don't have gravity spoiling the lattices. in space huge amount besides guys going up in rockets. >> and you, like elon musk, would like to grow on -- would like to die on mars. >> yes, but not soon. >> why? >> it is the best place for us to live. it is a real planet. we can probably generate an atmosphere. it is similar to earth, but less gravity, so when you get old, you don't get hunched over. it is a great place to retire. >> i've heard about experiment that could only be done at zero treatments,e cancer

things like that. tell me about the work that is being done in space that could solve problems here on earth. >> i don't want to oversell it and it still examined so, but everything begin somewhere. you can grow crystals much more purely in zero gravity. crystal into grow a gravity, the thing collapses if it's to death -- too delicate. without gravity, they can grow more elegantly. -- re not really sure >> from bloomberg headquarters in new york, i'm our crumpton. this is bottom line. obama isour, president set to sign an executive order to ease student debt payments. let's go to the white house. >> my parents worked multiple jobs to make sure cost would not be a significant barrier to me achieving my potential. while they save money here and

there, they planned to refinance their house to fund my college education. then during my freshman year of high school, my mom was diagnosed with breast cancer. i'm happy to say she is an 11-year survivor. [applause] but that meant that the money we were going to use to finance my education went to saving her life. of toolsto use a lot to finance my education. i've had scholarships, grants, and i worked every semester i was in school. and like millions of americans, i also had to borrow. 2011duated undergrad in with about $27,000 in student loan debt. my parents also took out $25,000 in parent plus loans. nervous about the economy and the job market, i went directly into grad school, which i finished up just about a month

ago. thathe grace period, means i have until november to figure out how to pay off $75,000 in student loans for during my grad program, i cofounded a nonprofit called the national council of leadership council -- the national leadership council. it is my passion to empower leaders -- student leaders toward economic opportunity in our generation. we could not have a better chance at that -- champion for that then president obama. [applause] without the president's efforts, i don't think my education would have been possible. loans made it possible for me to stay in school. and this president's work to keep student loans manageable by keeping the interest rates low and asked handing income-based repayment programs, those efforts will make it possible for me to succeed after graduation. you can imagine how important programs like pay as you earn

me, andstudents like millions of others around the country like me. tryingho are out there to do the best for the world around them, whether going in as teachers, public servers -- public servants, or like me, nonprofit leaders, i'm excited to see what we are able to do here today. and what the president is about to do with the stroke of a pen. im proud of the education received at american university, and the president wants to make sure that student loan debt does not hold me or anyone back from succeeding professionally and financially. it is my honor to introduce a true champion for students, parents, and graduates nationwide. please join me in welcoming president barack obama. [applause] >> thank you, everybody.

thank you. everybody have a seat. welcome to the white house. i want to thank andy for the terrific introduction. , andis commencement season it is always a hopeful and exciting time. folkswe might have some who just graduated here today. raise your hands. let's see you. we have a couple of folks who are feeling pretty good. [laughter] goal -- thence the glow wears off, this can be a stressful time for millions of students. and they are asking themselves, how on earth am i going to pay off all of the students loans? and that is what we are here to talk about. good think andy gave a example of what is going on in the minds of so many young people, who have the drive and energy and have succeeded in everything they do, but because of family circumstances found themselves in a situation where they have significant debt.

know, know, all of you that in a 21st century economy, a higher education is the single best investment that you can make in yourselves and your future. we've got to make sure that investment pays off. and here is why. for 51 months in a row, our businesses have created new jobs. 9.4 million new jobs in total. over the last year, we have averaged about 200,000 new jobs every month. that is the good news. but while those at the top are doing better than ever, average wages have barely budge. and there are too many americans out there working harder and harder just to get by. everything i do is aimed toward reversing those trends that put a greater burden on the middle class and are diminishing the number of ladders to get into the middle class. because the central tenet of my presidency -- partly because of

the story of my life and michelle's life -- is that this opportunity that should be available to anybody. the idea that no matter who who you are, where you come from, what you look like, how you were raised, if you were willing to work hard, you should have opportunity in america. and in america, higher education opens the opportunity for all. it doesn't have to be a four-year year college education. we have unity colleges. we have technical schools -- community colleges, technical schools. but some kind of skill will be your surest path to the middle class. the typical american with a bachelors degree or higher earns over $28,000 more per year than someone with just a high school education. $28,000 year. and right now, the unemployment rate for workers with a bachelors degree is about half of what it is for folks with just a high school education.

you know this is a smart investment. your parents know it is a smart investment. and that is why so many of them have made such big sacrifices to make sure you can get into , and a nag you throughout your high school years. here's the problem. at a time when higher education has never been more important, it has also never been more expensive. over the last three decades, the average tuition at a public university has more than tripled. at the same time, the typical family's income has gone up just 16%. michelle and i both went to college. because of loans and grants and the work that we do. you. will be honest with i am old, i've got to admit. [laughter] but when i got out of school, it took me about a year to pay off my entire undergraduate

education. that was it. .nd i went to a private school i do neiman go to a public school. so as recently as the 1970's -- a public even go to school. so as recently as the 1970's and 1980's, you are not anticipating massive debt on the back end getting off school. when i went to law school, that was a different story. but that made sense, because the idea was if you got a professional degree like a law degree, you probably would be able to pay it off. i did not feel sorry for myself or any lawyers who took on law school debt. justompare that experience half a generation or a generation ago to what kids are going through now. these rising costs have left middle class families feeling trapped. let's be honest. families at the top, they can easily save more than enough money to pay for school out of pocket. families at the bottom face a

lot of obstacles, but they can turn a lot of programs designed to help them handle cost. you have a lot of middle-class families who cannot build up enough savings, don't qualify for support, and feel like nobody is looking out for them. served -- justt described vividly, heaven forbid that the equity in their home gets used up for some other family emergency, or as we saw in 2008, suddenly home values sink. then people feel like they are left in a lurch. i'm only here because this country gave me a chance through education. we are here today because we america, no hard-working young person should be placed out of a higher education. this country has always made a commitment to put a good education within the reach of young people willing to work for it. i mentioned my generation. but think about my grand fathers -- my grandfather's generation.

i just came back from normandy, where we celebrated d-day. of young generation people came back from world war youat least the men -- know, my grandfather was able to go to college on the g.i. bill. that helped build the greatest middle-class the world has ever known. grants helped my mother raised two kids by herself while she got through school. and she did not have $75,000 worth of debt. she was raising two kids at the same time. neither michelle nor i came from a lot of money, but with hard work and help from scholarships and student loans, we got to go to great schools. we did not have this kind of burden we are seeing, at least at the undergraduate stages. as i said, because the law school, we'll need finished paying off our own student loans just 10 years ago. we know what many of you are going through, or look forward to, or don't look forward to. [laughter] we are of already -- we have

already started saving for our daughter's education. this is why i feel so strongly about it. took on the student loan system that basically gave away tens of billions of the -- tens of billions of taxpayer dollars to banks. we said, cut out the middleman. banks should be making a profit on what they do, but not on the backs of students. we reform it, and more money went directly to students. we expanded grants to low-income students. we offered millions of young people the chance to cap there student loan payments at 10% of their income. that is what andy was referring to. michelle right now is working with students to help them reach higher and overcome the obstacles that stand between them and graduation. this is something we are deeply invested in. but as long as college costs keep soaring, we cannot just keep throwing money at the

problem. we will have to initiate reforms from the colleges themselves. states have to invest more in higher education. historically, the reason we have such a great public education system, public higher education system, was that state understood, we will benefit if we invest in higher education. and somewhere along the line, they started thinking, we have to invest more in prisons than higher education. and part of the reason that tuition has been jacked up year after year is state legislatures are not prioritizing this. they are passing the costs onto taxpayers. it is not sustainable. tot is why we have to plan shake up the college education system and encourage colleges to bring down the cost. i proposed new rules to make sure for-profit colleges keep their promises and train students with the skills for today's jobs without saddling them with more debt.

too many of these for-profit colleges, some of them do a fine job. but many of them recruit kids in, but the kids don't graduate and are left with the debt. and if they do graduate, too often, they don't have the marketable skills they need to get the job that allows them to service the debt. none of these fights have been easy. all of them have been worth it. you have some outstanding members of congress right here and have been fighting alongside the good news is, more young people are earning college degrees than ever before. something we should be proud of and something we should celebrate. more of them are graduating with that, despite everything we are doing. we are still seeing two big debt load onto many young people. a large majority of seniors have taken out loans to pay for school. the average borrower at a four-year college oh