fast in the hallway. i feel like i've been here before. switch now and get the fastest wifi everywhere. comcast business. built for business. emily: it's the ideal picture capital firm -- venture capital firm, but a series of miss investments made many people wondering if the glory days of kleiner were over. then, there was the most closely watched trial in silicon valley ellen pao sued the venue for gender discrimination. joining me, kleiner

general partners john doerr and beth seidenberg. thank you so much for joining us. john doerr: it's a pleasure. emily: you have been quiet for a long time. why are you here? nobody -- likesoerr: nobody litigation. this trial was painful. at the end of the day, six women and six men gave five and a half weeks worth of testimony. they deliberated for a day and a half, and they found decisively that kleiner did not discriminate. , andd not retaliate allen's claims had no merit. we know there was a second trial going on in the court of public opinion. diversity, weof get that. emily: so you feel like we -- you lost in the court of public opinion? john doerr: i am sorry. is been hard for partners to go through this. i amthan anything else,

sorry that it has been hard for minorities in the tech industry. this is personal. i have to think dollars. eating to a 50-50 world where they and everyone can participate is very important. emily: how did you feel when ellen pao sued you? john doerr: disappointed. i read her suit, and the world she described is not who we are or what we stand for area emily: what has it been like behind-the-scenes? beth seidenberg: it's been hard. but we have been focused on our business and our results. emily: ellen pao says she repeatedly was excluded from beatings, dinners, and e-mails. she says she repeatedly brought her concerns to management and asked for better hr policies to deal with these issues, and those requests fell on deaf ears. how do you answer that? beth seidenberg: that has not been my experience. but i know as a woman that i have often been the only woman.

the only woman on the leadership team. my boards to this day, i am the only woman. it is hard, which is why i am excited for these initiatives to improve the situation. emily: sheryl sandberg told me she saw herself in ellen pao. many women have said the same thing. manys sue decker said that behaviors in this trial i have witnessed along the way. in aggregate, with the perspective of hindsight, they are real. how do you respond to this idea that, while this might not be this can have a real impact on someone? beth seidenberg: there is no question all of us women saw ourselves in that situation.

we are often the minority. emily: but do you understand how a lot of these things can be small things, yet in isolation they don't seem like a big deal, but altogether they are? john doerr: yes, we all understand that. we all possess hidden biases. it is important to be aware of those and act on it to mitigate them so you can get the best out of all your people and make better decisions. emily: the irony is that kleiner has had women in leadership for a very long time, and there are still many top firms who have none. is there a final problem in the vc industry? john doerr: sure, it's pathetic. a 6% of venture capitalists are female. it's ridiculous. emily: is it a pipeline thing or are people not looking hard enough? john doerr: i think they are not looking hard enough. if you want to higher outstanding women, you find then. -- you find them.

i worked with a woman over a decade. i hired mary not because she is a woman, but because she is the best in the world at what she does, as in dr. beth seidenberg. -- as is dr. beth seidenberg. john, ellen is someone you personally brought into the firm. you were her mentor. how to chief -- how did you feel when you found out she was suing you? john doerr: i was sick. it was painful. she was a good chief of staff, but when i read the charges, i knew from that very moment that these had no merit. emily: hello where were you of the situation? -- how aware were you of the situation? john doerr: i'd rather not get into the past. ellen did some good things, and i wish her well, and to read it.

emily: now she's the ceo of reddit. she is making bold moves. important tot is look at the difference between being an operator and an investor. i think ellen can be a great ceo, i hope that she is, but to be a successful investing partner is a different job. emily: have you talked to her? john doerr: only briefly in the trial. i said, "hi ellen. how's your family? how are you doing?" ok.said that's it. i haven't spoken with her since. emily: why did you not try to settle? john doerr: i always thought this should have been settled outside the course. from the very beginning. emily: ellen is proceeding with an appeal and asking for $2.7 million to walk away. why not just pay her? john doerr: if it were that easy it would have been done.

i will just tell you it's not possible. beth seidenberg: we have tried. emily: how hard? beth seidenberg: very hard. john doerr: the details there are really not what matters. what matters is we have tried really hard and it's not possible at this time. emily: do you feel like if you pay her it's like an admission of guilt? john doerr: i'm sorry this happened to alan, but it happened to us and the tech industry. this is not a question of guilt, it is a civil case, so the question is liability. the jury found we are not liable after five and a half weeks of testimony. emily, i'm sad anybody has a bad experience, and ellen did, but we're moving forward. we know there is more that we can do. emily: what is it like being a female partner at kleiner and being a female venture capitalist? beth seidenberg: being a female partner at kleiner has been the best work environment of my

career. that's because i am surrounded by great women and partners. emily: other women have left kleiner. does this alarm you? john doerr: no. over the history of kleiner perkins more than 30 junior partners have come to work for us and gone on to do amazing things. emily: but do you worry that not forcould be a place diverse candidates? john doerr: i always think that we need to have the best candidates. emily: why not happen hr department? john doerr: we are a small firm. beth seidenberg: and we have somebody who comes in and helps us with hr issues as a consultant. emily: john, have you felt like

you made any mistakes and how you have run the form -- the firm? don't run it, i have partners to help. i am one of six general partners. do we make mistakes? sure, but we can learn from them and try not to make them again. emily: do you feel like he made mistakes in regards to ellen pao? john doerr: i think it was an error to promote her into an investing partner role. that did not work out. she was a good chief of staff but not a good investor. so you don't think she should have ever been an investor. john doerr: she should have been given a shot, which we did. we she made a mistake, it made a mistake, and it didn't work out. you feel there were any mistakes and how the firm was run? beth seidenberg: no. emily: are you doing anything differently now? john doerr: yes, we are doing a lot because of what's happened.

we are doubling down on diversity. we are taking our firm through unconscious bias training. we are going to take it to all the portfolio companies where we serve on the board. the second thing we are doing is publishing a diversity report so you can judge us not by our rhetoric but buyer results. beth seidenberg: the third thing we are doing is improving the pipeline. we have are fellows program that is -- aing top students kleiner fellows program that is bringing top students around the country. about howyou worry this affects your reputation and image? john doerr: the results of the partnership are some of the best we have seen. in the last 24 months, kleiner has generated $4 billion in returns. we had the most exits last year of any venture firm. 13 exits. we have had huge winners like nest,which we helped --

which we helped incubate. we are doing well. emily: what do you see out there that could be the next google or amazon? ♪

emily: you guys made a dramatic shakeup a couple of years ago. only five partners were promoted and 19 were fired. you now have a partnership of six general partners. you guys are equal in this partnership. how strong do you feel the partnership is today? john doerr: it is fine on all cylinders. it is better than i would ever remember. emily: you have been at the firm at -- 435 years, and kleiner was a more early stage fund. you are making more later stage investments. is this a shift in strategy? john doerr: it is a strategic thing we are doing at the partnership area that early stage -- at the partnership.

early-stage venture capitals are something we still do. we believe if you were smart and careful about the choices that you make, you can earn six times or money on twitter while helping these entrepreneurs build great companies. we want to find amazing entrepreneurs and go with them on the entire journey. growinghere are concerns about valuations of tech companies. do you think these valuations are getting ahead of startups;'abilities to grow? the doerr: with respect to stock markets, we are in a. of normalcy. in the private market, there is pockets of valuations that are too high, and pockets that are too low. emily: so no bubble, the sky is not falling -- not doerr: this is a boom, a bubble. it is a long boom. people a half billion

now are carrying these around, and another billion to come, someone entrepreneur -- so an entrepreneur can create a new product and in a week half a billion people use it. that's different. what's also different is the amount of capital flowing into silicon valley. equity firms, hedge funds, people like carl icahn. what do you think of that trend? beth seidenberg: it is so competitive out there that we have to wake up every morning and compete to win and work with the best entrepreneurs. john doerr: there has never been a better time than now to start a new company. emily: but is it great for investors? the markets were not growing it would be bad, but that's not the case. we are in the midst of insurmountable opportunity. emily: so other investors have been a bit more doomsday about , justenario going on

saying that there are startups out there that are burning cash -- the cycle ofrg: success and failure goes on all the time, and i think we will see the same thing here. if a company is at too high a valuation and they are raising too much money, that's not going to last forever. john doerr: yes, companies are going to fail, but you can only use -- you can only lose one times your money. invent a valuable new service or product that makes the world better. who bet onare a guy google and amazon early. what do you see out there that could be the next google or amazon? john doerr: there are three areas i am excited about. one is the revolution in education. education is one of the largest parts of our economy, and it is well-positioned for improvement emily:. emilyt. emily: but there haven't been

that many billion-dollar education companies. john doerr: you're right. i'm also liking on demand services. of these,k at some they are a remote control for the world. you can summon services for all kinds of everyday activities. emily: that's interesting, because chris sacca just told me he did not invest in in sicard ing -- an instant cart -- an instacart, because he thinks uber will cover that. area that: the third i think is explosive is what happens in the emerging markets. billion cell phone users are going to come from india and china, so the fact that all of our contact information is trapped in this

phone is an old idea. they belong in the cloud. beth and i backed entrepreneurs out of stock on -- holm, and -- stock they have a billion and a half numbers in the cloud. --ly: kleiner previously met made a bet that did not pan out. how you feel about making that mistake again? makedoerr: i don't want to mistakes, but most importantly i don't want to repeat them. we want to explore new areas. an example is augmented -- not virtual, but augmented reality. hopefully later this year you will be able to put on a set of glasses -- bigy: facebook has made bets on virtual reality. why do you say augmented versus

virtual reality? john doerr: facebook is a great that youbut the idea will block out everything to get your experience of the world is one approach. i think the larger one is to see anything overlaid on the world you are in. i saw you wearing google glass when it debuted, but it has not worked out. what can the next generation of google bias due to be that -- google glass due to be better? john doerr: i can't really comment on that, but tony is very committed. emily: how would you feel about wearing this on your face all day long? john doerr: it won't look like that. apple watch's will get better and better just as that well. emily: do you have an apple watch? john doerr: i do. it's a fun thing. ♪

emily: of the four major

platforms -- google, amazon, facebook, and apple, are those going to be the major platforms 10 years from now? john doerr: the conventional wisdom would be probably not, but my view is that these are for amazing companies with talented people and prune propositions to consumers that i think aren't durable and will last more than a decade people are -- more than a decade. what about an apple car? john doerr: that sounds like a great idea. i had a lot of conversations with steve. a car.d him to build one of the best qualities of steve was that he was incredibly focused and good at saying no. emily: so at the time he said we are not ready? john doerr: yep. emily: what about tv? did you talk to them about that? john doerr: yes. he said i've got to crack the code on tv. emily: do you think apple has cracked the code?

john doerr: i believe so. emily: what are we waiting for? john doerr: i think it has to do with the media companies. what happened to the merger? john doerr: venture firms don't merge. we are always talking to other people and wondering how they would fit. what about him, did he really want to be ceo? did, itrr: if he wouldn't work, because venture partners ceo's. beth seidenberg: we are recruiting all the time. john doerr: but i want to be clear about something -- he is brilliant. emily: i have heard whispers in the market that you are actually talking to other funds -- maybe the word is emerging, but somehow working more closely. john doerr: partners leave partnerships and join others. beth seidenberg: we are talking

to people who want to join our team. we are excited that we want to add one this summer. we expect we might add another partner by the end of the year. succession for a vc firm has been difficult. what is your succession plan? john doerr: kleiner has been unusual in that we have multiple generations of partners and we are diverse -- in age, gender, and ethnicity, so we are on our fourth-generation transaction -- transition in 40 years. i am confident we will do it successfully. emily: how long do you plan to stay at the firm? john doerr: i have no plans to retire. but this is your baby. where do you see kleiner perkins in the next 10 years? john doerr: a venture capital firm breaking through in risky fields like augmented reality. and backing the world's best entrepreneurs. emily: john doerr and beth

seidenberg of kleiner perkins. thank you so much for joining us. beth seidenberg: thank you. john doerr: thank you. ♪

♪ our studios in new york city, this is "charlie rose." we continue an exploration with -- of the human brain with a look at gender identity and the biology of the brain. identity is a person's subjective experience of their gender that may or may not correspond with the gender assigned at birth. the term transgender describes someone who feels his or her body and gender do not match. it is estimated that about 700,000 transgender people live in the united states. one joins me tay