. . ♪ >> he's behind one of the greatest innovations of our time. mark an dreessen invenalted the web browser and co-founded netscape, bringing the internet into our lives and changing the world forever. two decades later he sits on the boards of facebook, h.p. and recently ebay. his complam firms backed some of the top countries, like twitter and pinterest. i sit down with mark an dreessen at the dream force conference in this special edition of "studio 1.0. i wanted to start with a word

of congratulations because 20 years ago, netscape, which you co-founded, launched. can we get some applause for hat? ushering the web as we know it. how does it feel? >> it's fantastic. it's so extraordinary. we had a little bit of a glimmer that something might happen, that it might matter, and this internet thing might work out ok. and it turned out it has. >> you've been incredibly productive since and started a little venture capital firm, andreesen horowitz and you tweeted 33,000 times. >> in one? >> in one year. >> thank you. >> which is more than all three founders of twitter combined. >> that's true. and i really think the stock in the company should be rebalanced. >> so we're going to reference some of your tweets throughout this conversation and i wanted to start with this one, given the anniversary of netscape. this is true, when i came to silicon valley in 1994, i

thought i had missed all the opportunities, fun, excitement, it felt post-o:30 libertyic. when ask you realize you were wrong? >> it took the internet taking off and silicon had been on fire in the 1980's with the p.c. and software and companies like oracle and microsoft taking off and adoanee and apple and these local companies and then the valley crashed really hard in the late 1980's. the thing i learned was the talent -- the latent talent, the number of people in the valley who were unbelievely talented a and qualified and skilled and who had been through the p.c. revolution and the early days of software who didn't have -- there was no real thing for them to do and the minute there was something to do they all stood up and said i want to be a part of that. to me it was a lesson in how the valley and technology industry more broadly is self-renewing, self-revitalizing. >> for someone who comes to the silicon valley today, have they

missed the excitement 20 years later? >> it feels to me today like 20 years of progress with the internet, it feels like we're just now starting to get the payoff of the hard work we've done over the last two decades. >> ebay and h.p. recently decided to split up and you said they made those decisions independently and mantec is doing it now as well. why is that happening [ >> i think there will be more fundamental change in the last 10 years than the last 20. i think every technology company more than 20 years old will almost certainly breakup, like literally split apart. >> define "every?" >> like every, i don't know. it will take time but you go down the list. >> you mentioned oracle. >> two big reasons. number one, they're all supercheap and this is something i think is widely misunderstood which is there conventional view there is always a tech bubble. even google and apple are trading at low double-digit p/e, price earning ratios and

many others like oracle are trading single digits. if you're a technology congrand slam rit in these lines of business, you have competition from every line of business from the startups and new companies. >> apple, google, amazon, microsoft, with they fall in the category of every? >> google and facebook and others are growing very fast. i think a lot of companies will get larger through this period. it's more than 20 years old, they probably benefit by being broken up and many will be forced to break up if they don't do it voluntarily. >> it's not a sign of defeat or a sign innovation is dead or lost? >> it's a sign of change and evolution, the industry is changing and a sign the technology is changing. it's a sign that there is the opportunity to do more and better if you're smaller and more nimble. the real test for technology companies is how do they make sure they stay on the leading edge, that they constantly have a product pipeline that will result in having evermore attractive products. >> from a leadership perspective, you mentioned

beniof and elson step down, is there a changing of the guard happening here? >> oracle, it's possible nothing just changed. so i think that might have had more to do with larry -- the number of papers larry has to signed a the number of meetings he has to go to. product development still works for larry and will probably be the same oracle for quite a while. >> how do you see the digital payments and mobile payments rates playing out? >> what we say from our standpoint is by far it's the most innovative and radical thing and will have the biggest impact over 20 years. apple has the biggest thing that will have the next impact the next three years and the combination of those two will cause enormous change.

>> let's talk a bit about the next generation. you recently sounded the alert about -- alarm about startups. another tweet here, bear with me, new founders in the last 10

years have only been in the environment where money is always easier to raise higher valuations. that will not last, in all caps. when the market turns and it will turn, we will find out who has been swimming without trunks on. many high burn companies will vaporize, all caps. there are inspections to all this but if you're reading this you're certainly not one. in a single word, worry. >> worry. >> what are you worried about? >> generally for 10 years off a very low base, it's gotten easier and easier to raise money so as a consequence you get used to being able to raise money and get used to being able to raise money at a higher valuation and maybe you can't raise anymore on the u.s. but if you get on a plane and fly to europe, you can raise it and next time you fly to asia and next, you find yourself in antarctica looking for investors further down the fringe and gets harder and harder. if you're an i-burn company and can't raise financing you literally go bankrupt or do a down-round which can be damaging to a company's

internal morale. >> why stop short of using the word bubble? >> so we don't think it's a bubble. every bubble in human history called a bubble by historians had widespread public participation. you always had a frenzy and the proverbial shoe shine boys or taxi drivers completely hyper enthusiastic about putting every spare penny in the socks. there's none of that today. valuations are running a little hot but there's some that doesn't have mass pricing. and i high lated more literally cash burn, how much money are you raising or spending. >> how is it playing out in your portfolio because obviously you have companies that you think are an exception and an investor in pinterest with a $5 billion valuation. how are you evaluating making those investments and practicing what you tweet, scaling back or being careful? >> to be clear all our companies are the exception, just to be clear. one of the reasons i went ahead and said what i said publicly is this is the same conversation we have with all our c.e.o.'s. it's a cautionary conversation. it's not a conversation that

says stop spending or, you know, have smaller goals or anything like that. it's a conversation that says be aware, learn from history, have an appropriate sense of risk, have good discipline. air b&b is an example which is a gigantic commercial success and the company is growing fast and going to be gigantic. there are other companies it's a bit of a balance. the other thing i'll highlight and we harang them all the time, extravagance is probably over the top. when you're burning $50 million a quarter as a new startup, maybe having not bruno mars play the concert, maybe we could have the regular water and not the coconut water. >> they all love the coconut water. >> coconut water has become a basic human rights in san francisco. and maybe the masseuse could just come in on wednesday and fridays instead of five days a week. it's gotten to be a bit much and there's a high correlation to building a fancy headquarters and falling off the cliff and collapsing as a business. the amazon model, the jeff

bezos model, you want a desk, it's a recycled door. go crazy. we're much more on the side of let's get off the sawhorse desk and tamp down a bit on all the spending. >> huh a spirited back and forth with carl icahn last week and you called him evil captain kirk, he said some things. i wonder, though, do some of these activist and investors actually have the same concerns you do? >> i think they are a result, not a cause. there is a consequence of companies being very cheap on the stock market, they're a consequence of companies in some cases needing to restructure or react to market changes. activist is a bit of a sideshow to the core question of how is the company being run? >> is there a disconnect between wall street and silicon valley? is there a fundamental misunderstanding? >> i think in the long run -- i don't think in the long run there's a misunderstanding. >> i'm curious on your thoughts on payments because it seems to be an area wide open and now you have apple pay, google

wallet, paypal, bit coin. how do you see the digital payments and mobile payments race playing out? >> so this is another really big thing. the system really has not changed significantly in 20 years. this is another area i think there will be more change the next five years than in the previous 20. and there's two big drivers of that change. one is apple pay. and the other is bit coin. the apple pay is the thing that is freaking out all the financial services companies right now. apple showing up to the party and saying we're now going to be in the center of payments has caused kind of a collective heart attack. and there are payment companies that are aligned with apple that are all like yeah, we figured it out and then there are payment companies that are basically having a stroke in real time, trying really hard to figure out what the implications of apple pay are. everyone assumes google will respond to apple pay with a google pay that will work the same with android. >> beingle -- google wallet hasn't really worked out and why didn't it and how optimistic are you that apple

can get it right? >> apple pay is viewed by the payment industry as revolutionary but it also is the most consistent with the existing payment system of any of these new systems. what actually is surprising about apple pay are so many things that don't change, you put in your credit card -- >> are you saying it's not that innovative? >> innovative but in a way consistent with the status quo. it's very clever. i acknowledge it's connected to what i just said. it's very cleverley done. if everybody has a way to pay and then all the merchants take it, then it's all great. but until you have universal acceptance on both sides, nobody uses it. it's a network effects problem. apple pay is cleverley calibrated to skip through that and being very much in alignment with the status quo payment companies, credit card companies and plugs into the existing system. it enters apple in the middle of existing system which is why

they're freaked out. bit coin is the inverse of it. crypto currency more broadly, truly radical and fundamental breakthrough in computer science and different way to dos processing, a replacement for a very large amount of the status quo. what we say from our standpoint is no longer bit coin by far the most innovative and radical thing and is the thing that will have a impact over 20 years but apple pay will have the impact in the next three years and the combination of those two will cause enormous change. >> you've been a huge spouter of bit coin, the price has plummeted. >> and come right back up. >> do you allow for the fact you could be wrong about bit coin? >> sure, absolutely. bit coin for us is very much -- the saving grace about the venture -- we're venture capitalists, i think like one now. we make 10 best and assume five will go straight to zero. frankly, i don't think anybody knows one way or the other. if it does work could be profound and revolutionary and gigantic. that said, underneath that,

thing i'm quite confident about is the crypto currency concept itself will become really vitally important and be in the form of bit coin. but even if it's not bit coin, it will be something else. i think netflix could have a billion subscribers by sometime in the early 2020's and there's no reason it can't just be absolutely gigantic.

>> a lot has been made of the power of sharing economies like lift. and you are an invester and tweeted perhaps the biggest key enabler for the sharing gig economy in the u.s. is the affordable care act of 2010, a.k.a., obamacare. i know you've been a republican donor and some republicans want obamacare repealed. what would you say? >> if your health care is not tied to your employer you can switch jobs any time you want and even if you hate obamacare as a government takeover of the health care system you should still love it because it makes it possible for people to pursue their own dreams as opposed to getting tied to one job.

>> there's been a conversation in san francisco going on about inequality and the responsibility of the tech community. you mentioned tech companies are a part of the stanford hospital project. mark beniof has been adamant tech companies need to do more, what do you think? >> i think that's basically right. it's basically true. there's some takes to it. one is the new startups are just new, brand-new. a big part of this is what the big companies do and the sort of maturation of companies that go from startups to big companies, kind of stepping up in their responsibilities. so i think that's a really big deal. >> what about when it comes to inclusion and diversity, something else that you and laura have been giving to. why is inclusion important to silicon valuey? >> tech is inherently inclusionary. tech wants to bring people in and include as many people as possible. the reason i'm so confident about that is because of the incredible coverage that -- the incredible people from silicon valley from the incredible number of countries. the challenge is we're still

underrepresented especially when it comes to women and in the u.s. when it comes to african-americans and latinos. >> should women ask for raises if they think they deserve one? >> yes. yeah. [applause] >> i don't care what anybody says, i think women should ask for raises. i'm a fan. i think these are solvable problems, in particular, i think these are solvable problems in two different ways. one is pipeline which there just are not -- for example, women are only 15% of computer science graduates in the u.s. which is simply too low. we have to get more girls and women in computer science. and the other is access which is network. and so the three organizations that we're funding are working on both sides of that, both the pipeline part and the access part. and i think if we really bear down on both sides of that, we can move the needle on this pretty fast. >> i'd like to talk a little bit now about the next five, 10 years in silicon valley and ask you a couple of future of questions. i wanted to start with television because i know you love watching television and i

work in television so i'm selfishly interested in what you have to say. what is the future of television? >> you will now be able to subscribe to h.b.o. without being a capable customer which for those of us -- [applause] >> i always maintain people wanted that and then everybody in hollywood told me it would never happen. i think the media industry overall will grow a lot in the next 10 years. i think video will grow tremendously. i think television in the form of everything from live television all the way through to, you know, now to nonfiction content and news and so forth, documentaries, all the way through to fiction, drama, comedies, it's all going to grow a lot. the reason i'm so confident on that is the number of people who can receive streaming video around the world now is like two billion people on its way to five billion by the end of the decade. in the future you want to watch something, you go straight to -- you google it and go straight to it or youtube and go straight to it or new bundles like netflix, if you

buy netflix stock, i wouldn't recommend buying it but on the day it drops 25% it might be worth thinking about. i think netflix could have a billion subscribers by the early 2020's and there's no reason it can't be gigantic and amazon will be big and hulu and these sort of the newing a gators and bundlers will get extremely large. >> what is the future of apple under tim cook and will apple be a big player in television? >> yeah. it looks incredibly promising. it looks extremely promising. the iphone 6 is obviously a huge hit and will be extremely successful. apple is gaining strength. you can kind of feel it. is the company gaining strength or losing it? you can feel apple is gaining strength. so i think they'll do extraordinarily well. the interesting thing about apple with tv is apple keeps refusing to build a tv and everybody keeps predicting there will be the apple tv you put on your wall and they don't build it. i believe the big reason they don't build a tv is it goes to

the power of smart phone which is that smart phone upgrade cycle is two years. i think what apple figured out the cycle for tv's or five years to seven years and the tv effectively is going to be a dumb peripheral to the smart phone and if you have a big screen nearby, you'll use an apple player chrome cast or one of these things and will be in the tv but the tv will be the dumb recipient of the content and they think that's a low margin business others can pursue. >> what's the future of elon music? >> obviously he'll build the iron man suit, i think it's obvious. and then obviously, he's going to -- in the suit, obviously, he's going to fly to mars. o so he has some work to do between here and there. there's some basic inventions he still has to master. there's three guys, three sort of founders who i think are really revolutionizing -- we're a lucky industry with all these people who are incredibly well known who build these amazing

companies and mark is certainly one of those and then these three people, peter tiel and elon and larry paige. and you talk to those three or listen to what they say or read the stuff they write and it's like their ambitions and aspirations from what they're trying to do is another step up from all the rest of us. and so, you know, the audacity -- you just look at elon's career, the audacity of starting an electric car company -- people forget, the one thing you knew in 2005 or whenever he started it, the one kind of company you he know you should never start in the united states is a new car company and the other kind of company you knew you would never start would be a new rocket ship company. and he's just getting started, he's in his mid 40's, he's got another -- who knows. here on earth he has another 30 years. >> peter tiel -- right. [applause] >> if peter tiel can discover the cure for immortality, he will. >> he's working on it. >> on twitter you recently said, not surprisingly, your

startup is not the next what's up but you write back to people, someone said what is the next big thing and you said something new. >> something new. >> what is something new? >> so we're trying our best to find it. but the big thing is just there is no net -- peter tiel talked about it and the point he makes i agree with is there never is one. there will never be another microsoft. there was only one. there will never be another google. there was just the one. same thing, people look to what's happening and founders are building the next what's app. but there will be new things. when do we know about the new things? they will be viewed as completely crazy. like the one thing we know is nobody will think they're the next big thing and will be something out on the fringe and something that will be considered bizarre and it will be software as the service in 1999 and everybody will be like there's no way, that never can possibly work and 10 years later it will be the next big thing. >> the marc andreesen, everybody. at tmarca on twitter.

>> hello and welcome "inside fendi." over the next 30 minutes bloomberg brings you behind the scenes of one of the most iconic italian fashion houses, fendi, meet the c.e.o. in 1925, two italians opened a fur and leather shop in rome. their names, eduardo and adeli fendi. the maptle passed to their five daughters and it's there the fendi story really begins. under their watch, the company grew into a multinational luxury brand, although they had some help from