>> he sits on the boards of facebook, hp, and ebay. andreasen horowitz backs some of the hottest companies, like twitter, airbnb. i sit down with mark andreessen

in this special edition of studio 1.0. netscape launched 20 years ago. can we get applause for that? that ushered in the web as we know it. how does that feel? >> we had a glimmer that something might happen and this internet thing might work out ok. >> you have been incredibly productive sense. you started a cap told venture firm -- capital venture firm. it is more than all three founders of twitter combined. >> that company stock should be rebalance.

>> when i came to silicon valley, i thought i had missed all the excitement. when did you realize you were wrong? and 1980'se 1970's with pc, and then with software like oracle and microsoft, adobe and apple and so forth. thenumber of people in valley who were talented and qualified and skilled who it been through the easy revolution who had been through the early days of software there was no real thing for them to do. up and said i want to be a part of that. for me it was a lesson in how the valley and industry more broadly is self revitalizing. >> have they missed all the excitement?

>> there is no way. it feels today like 20 years of progress. it feels like we are starting to get the payoff from our hard work over the last two decades. said they made those decisions independently. why is this happening? four -- more be fundamental structure and the next five years than there has been in the last 20 years. every company will break up. they will naturally split apart. >> define every. >> every. it will take time. you can go down the list. >> you mention oracle. >> there are two big reasons. one, they are super cheap. this is something that is widely misunderstood that we are in this conventional view that there are these tech bubbles. the really big ones like oracle

and others are trading at single digit price-earnings. differentall in these types of business, -- >> apple, google, microsoft? they are growing berry fast. i think a lot of companies -- more than 20 years old, they would benefit from breaking up. >> it is not a sign of defeat ? >> it is a sign of change, evolution. that there is an opportunity to do more and better. the real test is how they make sure that they stay on the leading edge. >> from a leadership perspective

, is there a changing of the guard happening? >> i think nothing changed at oracle. [laughter] have had to do with the number of papers that larry has to sign. it will be similar for quiet a while. >> had you see the digital payments and mobile payments race playing out. >> it is by far the most innovative and radical. ♪

>> lets talk about the next generation. you sounded the alarm about startups. bear with me. new founders in the last 10

years have only been in the environment where money is easily to raise. that will not last. when the market turns, and it thatturn, we were find many companies will vaporize. there are exceptions to all this. if you're reading this, you are not one. what are you worried about? >> it has gotten easier to raise money. as a consequence, you get used to being able to raise money. able to raise money at a higher valuation. europe, you can raise it. if you fly to asia, you can raise it. then you find yourself in an article looking for investors on the fringe. it gets harder and harder. you go bankrupt if you can't raise financing. you have to do a down round. that could be damaging to a

company's more row. >> why stopped short of using the word bubble? >> every bubble that has been called a bubble -- you always had a frenzy. you had the shoeshine boys are taxi drivers hyper enthusiastic. valuations are running hot. do withit has more to cash burn. how much money you are raising and spending. >> how does this play out in your portfolio? you are an investor in airbnb, interest. balancing making those investments and practicing what you preach? clear, our companies are the exception. [laughter] one of the reasons i said what i sameis that this is the conversation i have with all her

ceos. it is a precautionary conversation. it is not a conversation that says stop spending, have smaller goals, it says be aware. learn from history. have an appropriate sense of rest. that is aan example commercial success. the business is growing fast. it will be gigantic. there are other camp knees where it is a little bit of a balance. other companies where it is a little bit of a balance. maybe not having bruno mars play a concert. [laughter] maybe we can have regular water not coconut water. we all love the coconut water. it is a human right in san francisco. [laughter] maybe the masseuse can come in on wednesdays and fridays. it has gotten to be a bit much. the alternate model is the

amazon model. if you wanted desk, it is a recycled door. andre much more on the side tammy --tamp down a little bit. you called him evil captain kirk. he said some things. do some of these activists actually have the same concerns as you? a result, not a cause. they are a consequence of companies being berry cheap on the stock market. they are a consequence of companies needing to restructure. it is a little bit of a sideshow. >> is there a disconnect? is there a fundamental misunderstanding? run, there is not a misunderstanding. >> i'm curious about your

thoughts on payments. it is area wide open. now you have apple pay, google wallet, bitcoin. how do you see the digital payments and mobile payments race? >> this is a big thing. the system has not changed in 20 years. this is another area where there will be more change in the next five years. there are two big drivers. one is apple pay. and there is bitcoin. isle pay is the thing that freaking out all the financial services. apple is showing up to the party and saying we will now be in the center of payments. that has caused a collective heart attack. there are payment companies that are aligned with apple. there are payment penalties that are not. they are having a stroke in real time. they're trying to figure out the implications of apple pay. they figure google will respond to apple pay. >> google wallet has not worked out. why didn't it?

>> this is what is interesting about apple pay. it is revolutionary, but it is the most consistent of the existing payment systems. that somerprising is things don't change with apple pay grade you put in your credit card. >> are you saying it's not innovative? >> it is berry clever. acknowledged what i just said. it is cleverly done. if everyone has a way to pay and all the merchants take it, then it is all great. until you have universal acceptance, nobody uses it. is it a networks affect problem? it is calibrated to skip through that to be in line with the status quo of payments. it plugs into the existing system. it was apple in the middle of

the existing system. bitcoin is the inverse of that. it is radical. crypto currency is truly revolutionary. a different way to do transaction processing. a potential way to replace the status quo. and away the most innovative. will pay is the thing that have the impact in the next three years. the combination of those two will cause enormous change. -- been a bigd supporter of bitcoin. you could be wrong about that going? >> sure. graces -- we are venture capitalists. i think like a venture capitalist. we make 10 bets. we assume that five will go straight to zero. no one knows one way or the other. if it does work, it could be

profound and revolutionary and gigantic. that said, underneath that is that the crypto currency concept will become vitally important. i think it will be in the form of bitcoin. even if it is not, it will be something else. >> netflix could have a billion subscribers in the early 20 20's. there is no reason why it cannot be gigantic. ♪

>> on a lot has been made of companies like luber -- uber and lyft. i know you have been a republican donor, and some republicans want obama to repeal. what would you say to that? care as ahate obama government takeover, you should still love it because it makes possible for people to pursue their own dreams.

conversationbeen a going on about inequality and responsibility and companies that are part of the stanford hospital project. has been adamant that companies need to do more. what do you think? >> that is basically true. a lot of the new startups are brand-new. a good part of this is what the big companies do. think that is a big deal. >> what about inclusion and diversity, something else that -- why is inclusion important? valley and tech is including -- inclusionary. confident isam so because of the incredible coverage -- people in silicon valley -- the challenge is we

are still underrepresented when it comes to women. do women ask for raises of they deserve one? [laughter] >> yes. [applause] i don't care what anybody says. i'm a fan. i think these are solvable problems. two different ways. one is pipeline. -- women are only 15% of computer science graduates. that is too low. we have to get more women into computer science. the other is accessed, networks. the three organizations that we are funding are working on both sides of that. i think if we really bear down on both sides of that, we can move the needle pretty fast. >> i want to talk about the next five years to 10 years in silicon valley. i want to start with television,

because i know you love watching television. i worked in television. i'm selfishly interested. what is the future of television? >> you can subscribe to hbo without being a cable composition -- subscriber. [laughter] [applause] >> i always maintained that people want that. halloween said that would never happen -- hollywood said that would never happen. the formelevision in of everything from live television all the way through news, sotion content, forth, documentaries, fiction, drama, comedy, it will grow a lot. the reason i am so confident is that the reason people can receive streaming video, two billion people, on its way to 5 billion people by the end of the decade. tothe future, if you want watch something, you go straight to it. or, new bundles.

i think netflix could have a billion subscribers by sometime in the early 2020's. amazon will be varied big. aggregators will be large. >> what is the future of apple under tim cook? will apple be a big player in television? >> it looks promising. it looks extremely promising. netflix is a huge hit. apple is gaining strength. feel that apple is gaining strength. i think they would do extraordinarily well. the interesting thing about apple tv is that apple keeps refusing to build the tv. everybody keeps predicting there will be an apple tv you put on your wall. they don't build it.

i believe that they don't build the tv goes back to the smart fun, which is a upgrade cycle is two years. the upgrade cycle for tvs is five years or 10 years. the tv will become a jumper for a field to the smartphone. real to theff smartphone. is a low margin business. >> what is the future of elon musk? >> obviously he will build the iron man suit. [applause] [laughter] in the suit, he will fly to mars. he has some work to do between here and there. guys, threeree founders who are really revolutionizing. industry through

we have all these people who are incredibly well-known known and built these amazing companies. he is one of those. musk -- youelon talk to them and their ambitions and aspirations are another step up from the rest of us. audacity -- look at anyone's -- to start a car company. you know youny should never start in the united states is a car company. the other company you should never start is a rocket ship company. he is just getting started. he is in his mid-40's. he has another 30 years here on earth. [laughter] discoverer teel and the cure for immortality. you said on twitter, your startup is not the next what

sapp. what is something new? >> we are trying our best to find it. is -- peter teel talks about this. there never is one. there will never be another microsoft. there will never be another google. there is just the one. we have founders come in all the --e -- there were another there will not be another whats app. -- ite thing we do know will be out on the fringe. it will be bizarre. it will be software and service in 1999. people will not think it will work. 10-year slater that is the thing. >> the marc andreessen, everybody. ♪

>> welcome to money clip. i am matt miller in for olivia sterns. the ceo says he is proud to be gay. at the massive auto plant in germany. in politics, gridlock or compromise. we map scenarios for republicans in charge of congre