announcer: from the heart of where innovation, money, and power collide in silicon valley and beyond, this is bloomberg technology with caroline hyde and ed ludlow. caroline: i'm caroline hyde at bloomberg's world headquarters in new york. ed: i am ed ludlow in san francisco. this is bloomberg technology. caroline: from tesla to netflix, we wrap up tech earnings and

push to the big names ahead. ed: plus we sit down with the head of kkr's tech growth fund does see where his firm sees opportunities after they raised $3 million. caroline: we will wrap up coverage from new york tech weekend here from two venture capitalists on what they are choosing to invest. at that is the private side of the market, let's go to the public because we have a clear flight to safety as we had to wear the weekend. geopolitics the main noise we are currently having to digest and see and witness. we are currently seeing the nasdaq up by more than one percentage point as we worry about conflict expanding in the middle east. 10 year yields see money move into the bond market, eight basis points to the downside on the tenure and crude pushing on the higher side, $90 in terms of oil so a key signal to some of these volatile times. let's have a look at what is happening in terms of volatility of the key tech asset class. it is crypto, 29,000, at one

point again we jumped over that $30,000 level. as we have seen earlier where there is much anticipation, wrongly seeming about an etf coming thick and fast and sec approval, there -- that is not there yet when it comes to spot big when etf but there seems to be some hope this is what we will see in the near term and maybe this is seen as some quality purchase at the moment. what are you watching at the moment? ed: tesla is the single name stories of the week. we will go deeper later in the week with our reporter but you can see the drop clear as day following earnings, thursday was the biggest drop since early july but in aggregate on five days, tesla is on track for its worst week of the year. a lot of refocus on the growth narrative. elon musk talking about rates. we will bring you details. the earnings story will continue into next week because we have most of the mega caps reporting next week. if you think about the big five names, four of which are on this board, earnings on average are forecasted to grow 34% year on

year at a time when the s&p 500 overruled -- overall is forecasted to have flatter earnings growth. a lot of hope end on these big tech names but you then go back to the macro, what is happening in israel/hamas war because that is impacting financial markets broadly and these are some of the biggest points movers to the downside in friday's session. largely driven by israel. caroline: and fresh concerns regarding the conflict. let's dig into what president biden himself was saying last night on a direct appeal to the american people to score funding for israel and ukraine's war efforts. take a listen. pres. biden: hamas input and represent different threats but they share this in common, they both want to completely annihilate neighboring democracy, completely annihilate it. there are innocent people all over the world who hope because of us, who believe in a better light because of us, who are desperate not to be forgotten by us. and our await ding -- and are waiting for us.

time is of the essence. caroline: we want to discuss this with nick wadms. president biden is appealing for more funds to be allocated at a time where there is no speaker of the house. bring us up to speed with the concerns we have about an escalating conference -- conflict across the middle east. nick: that is the big question on everybody's mind right now, we are exciting israel could launch a ground invasion into the gaza strip at any time and the u.s. is saying they want to show their full support for israel while also wanting to avert a humanitarian crisis or further humanitarian crisis could further exacerbate tensions in the arab world and potentially draw in hezbollah fighters and maybe even iran's. you saw the president ask for more than $100 billion in funding last night. that money would go primarily to ukraine, but there would be

about $14 billion for israel to supply it with munitions and other weaponry. aimed mostly at missile defense, so the concern is israel -- israel's iron dome system will be overwhelmed in the event has below launches a full-scale missile attack. so a complicated and tricky tightrope for the president to walk on pledging support for israel but hoping to avoid the humanitarian crisis. ed: you lead our national security coverage at bloomberg and the show is "bloomberg technology." you talked about iron dome. in real-time, across the middle east region, there is literally conflict. the united states has bases in several countries where they are dealing with missile attacks and thinking about the response. they are engaged in active military operation. could you explain to our audience what is happening across the region? on friday as we speak but also

heading into the weekend. nick: well, the primary issue obviously is impending israeli ground invasion but you did have the situation yesterday where the u.s. reported three incidents where drones, they notice what they called an uptick in hostile drone activity , so drone attacks on u.s. forces stationed in iraq and syria there were minor injuries reported but -- while the pentagon was trying to say these are isolated incidents, what you see is a more hostility toward u.s. forces in the region and concerned there would be the u.s. itself would be pulled into this war. the administration has been flowing military assets to the region, they knocked down three cruise missiles from who the rebels in yemen but you are seeing this greater u.s. involvement and that has raised concerns the u.s. could possibly be pulled into this. administration is saying we would not put boots on the ground, but they have been

sending more fighter jets, obviously aircraft carriers. there is the concern that as the u.s. looks to deter iran and other actors that itself -- it itself could be drawn into the conference. ed: nick wadhams, who leads our national security coverage out of d.c., thank you very much. i want to stay in the world of geopolitics and talk about new u.s. rules aimed at restricting cutting edge technology going to china. they really hit shares of one name this week which is nvidia. you see it on a five day basis, down 9%. the worst two day decline in the last two sessions in more than a year. the u.s. threatened a fifth of u.s. revenue which comes from china, particularly in the data center context. this is a stock trading at its lowest level on track for its weekly -- worst weekly decline since the week ending september 2. it is a timing issue because its stock is up more than 100 --

100% year-to-date and had been the name and ai. caroline: and that's the context, how far the stock run -- has run. for we see the euphoria around the statement particular to artificial intelligence has gone too far into fast. is it a $1 trillion opportunity here in terms of its own market capitalization? is time that she's time we have seen the pullbacks further and you ended up being burned, if you sold off and we can ask kathy witt about that as she downplayed the name since the start of the year but it does feel like this has been a turning point the last five days. what is so interesting as you pointed out time and time again this was not new news to a larger extent. ian had been reporting on month or so ago it is likely these particular chips designed for china would end up being swamped by what is a geopolitical context. ed: this week's trading has been a surprise because in june ian did report the u.s. would expand to include a 800, the china

chaps, and it happened and nvidia was supply constrained, they can ship the g-v is -- gp was elsewhere. shares of tesla could be facing one of its worst weeks after posting disappointing third-quarter results. more on that next. that stock down 15% on the week. this is "bloomberg technology." ♪

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ed: shares of tesla falling today after missing three q sales and profit estimates. the ceo dialed back on growth expectations. the stock down as much as 15%, more than 15% so far this week. as we set on this program already today, that puts tesla

on track for its worst week of the year on a weekly performance basis. let's bring in sean o'kane out of texas who was all over these earnings and let's start with the basics. margins, worse than expected, missed on eps and sales. give us the numbers. >> we see an adjusted automotive gross margin when moving the regulatory credits of 16.3% and that is a figure everybody has been focused on all year, ever since cuts began. how much of that profit was tesla going to eat into to keep demand where they wanted it to be. we knew they had shut down the factories for upgrades this quarter, we knew there would be some pullback in some of those numbers but it all wound up worse than expected. for me, the thing i keep coming back to is there -- they're operating margin is down to over 7% and in january this year, at

the time the still cfo said that is the number they focus on the most internally as a management team and they wanted to push in front of the street and say you should focus on this, less about the gross margins, which will be volatile. that operating margin is now lower than it has been in the last two years and way off of its high of 29%. definitely harsh numbers. the real question is how much can they picked out -- that up in the following quarter. 475,000 cars out to hit their one million target for the year. that is something they can do, it is not an and norma's jump compared to the last couple quarters, but we will see where it goes. caroline: adam jonas, one of the most bullish analysts out in terms of price target, he has been saying this is the read across for the rest of the ev market and if tesla is hurting that look at everyone else. he does think this is short-term pain, longer-term the focus is still there. they will be able to boost the overall volumes, but are people

thinking this is a car company then tech company at the moment? >> i think it is -- it's valuations show people are expecting more car company plus i guess you could look at it. one of the big questions i think moving forward in this quarter and 2024 is we heard a lot of talk the other night about cost-cutting. it really sounds like tesla is doing less boasting about cost-cutting as they have in the past and coming up with innovative ways to lower the costs on their side. now it unlike they are racing the price cuts on the consumer side with these cost cuts internally, so can they cut or cost out of the car as fast or at least nearly as fast as they are cutting the prices on the front end? i think it seems they're probably getting to a point where there is no return, they have cut so much cost out of the car is very until the next generation platform comes out, it will be cheaper to produce. i think we are ending or coming to a head with this generation

of cars built on this platform that has been around for many years. caroline: great breakdown, we thank you. looking at the tumble when it comes to share prices of tesla, x, known as twitter previously, is launching two expensive plans, eliminating apps entirely. this comes as they begin testing of the one dollar pays of script and fee. the new accounts in an effort to cut out spam and bought accounts elon musk was so frustrated about. ed: so many options. let's get to other earnings out there this week. netflix, the streaming service, posting its best quarter for subscriber growth in years when it reported earnings the other night. the company credited the strong programming slate but also its crackdown on password sharing, joining us is alicia reese. this was one of the things where we talk about the other stuff, advertising, content, strategy, than the subscriber numbers hit

and we go back to the only thing we care about is subscriber numbers. what was the main takeaway for you? >> subscriber numbers benefited strongly from the password sharing crackdown. you have the families who chose to add their extra members, eight dollars per month in the u.s., similar elsewhere. and that his grandma, kids going to college, aunties, boyfriends girlfriends, everybody who once sat on to the account and didn't want to kick off, that is a boost and then all of the people who got kicked off our joining for their own accounts and often on the end here and that is pulling our crew down but that is boosted subscriber numbers. i think the most important part of the ad tear by itself is it is reducing churn. it would give people who would otherwise turn out for a period of time because there is no content that they want to see and pay for, they can lower

their monthly fees and go on the ad tear for a. of time -- for period of time. caroline: meanwhile, like with tesla, they are trying to calibrate the cost of the business and the fact they have pulled back on content and are releasing things more specifically, is that the right tactic to go for the moment? >> i think so. there are two things benefiting netflix right now. before the hollywood labor strikes, they had already reduce content cost. all of the streamers had. they are reducing volume and netflix was guilty of basically buying everything they possibly could and seeing what stuck on the wall. now there are lab -- they are a lot more focus on quality of content instead of the volume of content. the volume really just makes the user, it takes too long to find something they want to see and having the quality shows is what really is good for retention. their focus on quality and also focused far more on efficiency of content.

using the global content that can cross regions, squid game was the first major one they saw how well that worked. now, with the strikes, they are looking at more licensed content, they have not used this strategy in a while. they have been doing exclusive content and original content, and recently they licensed suits. this is an old show and it did really well. and they are working with warner bros. discovery, unlicensed and content that is on max and this is no longer exclusive but it is doing well on their program. warner bros. needs the money, netflix has that you are -- viewership, it is a win-win situation and i think that will help netflix to continually expand its free cash flow. caroline: netflix remains on your best ideas list as they seem to be pushing to the future as you like to say it. alisa riche, great to have you on the show. we appreciate it. let's stick with earnings because today american express reported world record revenue for the third quarter, record

profits as well. ultimately a company that is managing to attract new cardholders, particularly gen z, millennials they hope will continue to build over the four feet -- foreseeable future. the stock is down a little as many look towards perhaps some of the small to medium-size enterprise spending and business spending. i spoke to the ceo a little bit about his own business investment and ed of course about artificial intelligence. he was talking about this as a game changer saying if you do not adopt that you will be left behind. he's not saying he will take your jobs but saying if you don't have your workforce ready for ai, they will be in a sort of situation. ed: think about the volume of data they have to play with in terms of behavior. coming up, a bright day for crypto-related stocks as the price of bitcoin climbed above 30,000 u.s. dollars. we will discuss with sonny singh, the cofounder and ceo of a new company, beluga, as the crypto platform seems to ask -- sees to expand its presence. this is bloomberg. ♪

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♪ caroline: let's speak about crypto. some of the optimism around bitcoin again being shown as it managed to crack through the $30,000 level once more. this again is about the hopes it might be able to see a spot bitcoin etf come to the market if not one two at the plethora put forward. we understand at the moment we are seeing this brought a rally but looking toward gbd see in particular grayscale, trust, they could be adc court ruling on that atf application as soon as today. the sec asked a federal judge to dismiss the case against ripple executives and there seems to be this mood music shift so we will see grayscale prevail at the end versus the sec.

the sec backing down and ultimately this hinting we will see etf's being adopted sometime soon. ed: let's have some more bitcoin chat, caroline. our next guest is so confident about the growth of crypto, he is predicting bitcoin will only preach its $69,000 high at some point next year but go beyond $100,000 per token. here in the studio, the cofounder and ceo, the new company, beluga, which raised $4 million which we will get to. why so confident? what are you basing this call on? >> it's great to have young again. when has become resilient. you see it go up while the markets are going down and exterior we have what i would say is a perfect storm. three things happening, the bitcoin etf which you are talking about, sec is going to relent on this one, delay as much as possible, but by q1-q2,

you will have an etf live. then you will have interest rates hopefully coming down next year too and third, the most important, the bitcoin having happening in april. normally after that, four to six months after, you see the bitcoin price rocket. last all-time high was six to $9,000 after the bitcoin having four years ago. i think we take that out and we reach 100,000 next year. ed: larry fink, the ceo of blackrock, you probably know, outlined this idea based specifically on the events of the last week that bitcoin is behaving as a haven asset based on everything happening in the world right now. do you believe that? sonny: yes and no. this has been working this way the last couple weeks but during the pandemic it did not work out that way. it is like a risk stock. that narrative have -- has proven true sometimes but not other times. the other three events next year are more importantly as what

will drive price up next year. caroline: still i think the entire market looks at larry fink open mouth with the about shifty has seemed to have had around bitcoin and he says customer driven. i'm interested in what you are doing about customer driven to your new enterprise, beluga, you av been raising funds, 4 million, ultimately we talk about institutional adoption and retail having pulled back. how are people using crypto other than a risk asset? sonny: we had a $4 million round in the crypto winter but we started beluga to help people not only on board into crypto but do more with their crypto. it is estimated there are 400 million people around the world that own crypto which is amazing but only 10 million to 20 million are doing anything with their crypto p one to people not just buy and hold but stake, lend, play, earn, pay, in used crypto.

there are all these new products launching every day whether web three games, crypto credit cards, lending prox, and no one knows how to use them. they are not feeling confident to want to understand these prox at all and that is where the job of beluga, to help ease people that already own crypto to do more with their crypto. ed: why are you doing that and not legacy, traditional finance and also the name lugo? sonny: first the name beluga. everyone crypto wants to be well and they are some of the smartest whales out there. we want a smart crypto whale. why am i doing this? i have been a bit pay for almost nine years, 2014, and i was always on a mission to help people do more with crypto. even though i was in crypto for nine years, when d5 came out, i could not understand how it worked. i had to google, ended up and read it, and then got scared away. there a lot of people in crypto that admit they don't know how

this works and we are trying to help them do more. caroline: sonny singh, we think you for exciting and the -- and what you about. on new york tech week coverage, coming to a close. but we will hear from two key venture capitalists. this is bloomberg technology. ♪ get help reaching your goals with j.p. morgan wealth plan, a digital money coach in the chase mobile® app. use it to set and track your goals, big and small... and see how changes you make today... could help put them within reach. from your first big move to retiring poolside - and the other goals along the way. wealth plan can help get you there.

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caroline: welcome back to "bloomberg technology." i'm caroline hyde in new york. ed: i am at ludlow in san francisco. it is the final trading session. let's get a check in the markets. nasdaq 100 on course for its biggest weekly decline in month but the other way of putting it is it is coming off of the back of three weekly gains on the nasdaq 100. it will be modest gain in two of those weeks. the macro story is pretty clear. we have refocused on the fed,

bets are the fed will keep rates higher for longer based on the strong economic data we have been getting in the u.s.. that directly impacts technology from a valuation standpoint. then there is the geopolitical risk, not just what is happening in the context of the israel/from us for which we have been covering on this program but also u.s. technology x for curbs to china being expanded. within the next -- nasdaq 100, many chip things are dragging it down and then we have a mega week of earnings next week. so much to come. caroline: and we are all in you are picking ourselves up after a social we have engagements because it has been officially tech week in the city, coming to a close the last few days. we spoke with a range of founders and investors to break down what makes nyc a unique and thriving technology hub. one of those entrepreneurs is been layer who spoke to us about his experience operating and investing in new york city. take a listen. >> i feel like every week is new york tech week.

we are in an explosive period of growth and when we started the firm, new york was this tight little tech ecosystem. i felt like i knew every founder building something and it has been a steady drumbeat for over a decade and does not feel like it is stopping. every day there's another west coast vc or vc from another market setting up shop and trying to hire in the market and i think this is an amazing place to build a company and i don't think anyone questions that anymore. caroline: it is interesting that is happening in the current economic environment where people are worried about growth capabilities of certain companies and the access to capital. why do you think it has been able to grow, bring over the sequoias in a moment where we are kind of in a downturn? >> i think part of it as personal decisions founders make. this is a great place to live, and incredibly high quality of life, amazing diversity, so many interesting people, every

industry has some foothold here. it starts with talent and i think new york is generally -- has generally had a aggressive posture in making this a hospitable place for companies to build. this is also a home of so many large industries. this is a place where media, commerce, sort of the powers that be, are here so it makes sense to build in this market. now with more access to capitol, i think it makes it a better place to people -- for people to come and build. caroline: you mentioned those areas of big institutions, big companies that are already and ultimately industries that have grown here and out of the thriving ecosystem around them, i think of some companies you back. oscar health aligning with the health care industry in new york. we think of a consumer company you back, some of the other areas of the consumer, morgan parker and the like. what is thriving at the moment?

is it time to be putting money behind consumer companies given the consumer is in a worrying place? is it a time for fintech to grow? is it all of the above? >> i don't think there is an industry or area that is specifically -- certainly for us an area of focus, early-stage investors, focused on talent primarily. there is certainly some softness with the consumer. i think the reason consumer companies are more challenging to build these days is less macroeconomic consumer issues and more just the fact so many consumer companies build with a similar playbook. a lot of the same sort of advertising strategy, an over reliance on a few large social media platforms that have been flooded with brands flooded with

d.c. dollars. a group to quickly so i think there is some -- there has been a big cleanup an adjustment -- and adjustment in the direct of consumer commerce space. these things go in cycles. in my heart i love consumer. we have done well with consumer over the years, and while we're doing less these days than past cycles, i don't feel like that is a permanent change for it i feel like that is a cyclical one. we continue to want to find great consumer companies. caroline: do all companies have to be ai companies at the moment? >> at the moment, if you are an ai company, it is helpful in terms of how a bunch of the mid and late stage vc's and frankly a lot of early-stage vcs will view you. ai is the most exciting change in technology we've seen in the last decade and also deals are overvalued, there is going to be a bunch of value destruction and some extremely important companies that get built.

i think, with anything, it is a place to play would also show restraint. you need to make sure whatever your business model is as a fund you do not violate the principles of what your model is when there is a space people get excited about. caroline: ending on the hype cycle there. let's continue the technical conversation. we are pleased to welcome the founding partner and female founders fund born almost a decade ago. and now finally we see all of the celebration of the tech ecosystem at a time that is sort of uncomfortable because we are seeing companies having to think far more about profitability than revenue growth. how do you think of that outcome with the exuberance around vc's coming here? >> first of all, things for having me. i would say we see this thin our own portfolio but also the broader ecosystem. i think there was a recent stat that came out that there are over 1000 privately held

unicorns that i think in the next year will run out of cash. across the board i think there is this push and need to really rethink your business model because there is not a lot of growth capitol out there. the ipo markets have not opened up i think the way everyone thought they would so whether you are a late stage company or seed early-stage company, i think the way investors are looking at businesses has shifted fundamentally. caroline: therefore you are giving a level -- an awful lot of advice you're founders i'm sure. one of the areas that you manage to leapfrog the so-called zombie moment? is it the time fintech in outperform more if you have ai adjacent you have to integrate that within your business model? >> i think it is imperative for all founders to think about ai and how they can use it to create efficiency within their companies. i think, for us, areas we have been excited about and invested in in the past year or so, one

would be health care. we were early investors in maven and the company has gone on to perform incredibly well, particularly in the last two years, and as a result of double down whether it is in fertility, maternity services, menopause, i think there is a lot of opportunity across the board. the other sector is climate tech. 70% of the deals this year have been in climate tech ranging from a waste management software solution to the first hydrogen-powered plane. caroline: both of those things you reference women's health you are also putting up the idea there is so much underserved talent within female founders you can allocate -- allocate over and above others. these things are becoming politicized in some way, at least allocations of funds to minor -- minority founders and climate tech. how have you found new york has been able to isolate itself from that a little bit? have you ever had to waver from your overall thesis? >> no.

what has been incredible to see, you mentioned in an extra 10 years when you think about the quality and quantity of deal flow and how that is expanded. it has been incredible. to see that not only are there more companies but the founders are now some second time founders. some have had exits. i think that truly speaks to a broader opportunity that i think others have recognized. which is really exciting. ed: it is at in san francisco. so good to have you on the show. i want to say fantastic coverage by caroline this week for new york tech week. we have had the founder, the vc perspective, and the academic perspective. the bit that is left to talk about is what it is like to run a vc firm in new york city. vc's make money from the carried interest on the fund and management fees. there is these great names that moved to new york to do that. what has it been like to hire

these associates, get more partners in? >> i think there's deftly been an appreciation for vc's, for example that work in the valley and i think i mentioned this earlier, the quality of life in new york, the diversity of industries and people has attracted some great talent. caroline: when it comes to talent ultimately of the founders you find and institutions that are backing them at the moment, where are you thinking about m&a route to exit? thinking about helping these talented individuals who are potentially looking at a runway about to run out, do you think there will be more consolidation in some of the companies you have, rather than having an ipo exit that seems to be on again off again? >> in reality most exits tend to be m&a. i think 2024 will be a big year for m&a because a lot of companies will have to seriously consider the fact that if the ipo markets do not open, that is real outcome.

for them to consider. i think for us, as we look at these newer areas, for example in climate and health care where we have been investing for some time, there are a lot of acquirers and it is a fairly inquisitive industry as well. that is definitely part of our consideration set. caroline: the founders you find, are they new york-based? do you like to look agnostic lee across the u.s.? >> we are about 65% new york-based so we are betting big on new york and think there will be a lot of really exciting momentum in the years to come and majority of exits have been new york-based companies. caroline: with the exit comes funds to reinvest in the ecosystems and second time founders, we thank her for joining us from the female founders fund. ed: terrific conversation. alert, for everyone watching the program, the final domino has fallen. clay vio is the last of the recent ipo's to now fall below its ipo price, trading at $28.92

per share. the ipo price was 30. think about arm, think about birkenstock, the last holdout is gone. i'm sorry to end friday -- caroline: i know, what a downer. ed: you talked to the guest about the short-term window and in this moment that happened. coming up on the show, kkr closed its third tech fund at nearly $3 million. we will talk about how the firm plans to invest that money globally. this is "bloomberg technology." ♪ the first time you connected your godaddy website and your store was also the first time you realized... well, we can do anything. cheesecake cookies? the chookie! manage all your sales from one place with a partner that always puts you first. (we did it) start today at godaddy.com

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ed: kkr announcing a closed its

third tech growth fund at nearly $3 billion. it will focus on investing in leading growth technology companies across northern america, europe, and israel. dave welsch joins us now to discuss. dave, welcome to "bloomberg technology." a description of the company's you're looking to target, may be more mature companies, which industries are you going to go after? dave: thank you again for having me on, really appreciate it. we think it is an exciting time to continue our growth strategy which we started almost a decade ago now and the type of businesses we are looking at as you mentioned, some are little bit later and we like to say business is down to the product market fit. and we are scaling, any organization like kkr that has a broad set of global resources i can help bring those to bear and were clever led -- collaboratively to get them for

global enterprises to strong global enterprises. across software, fintech, we are probably done the most in software and continue to have a major focus of what we do and very specific areas underneath those broad categories where we spend our time. ed: we're talking billions of dollars, right? you have done growth, done tech. i'm interested in the lp's. so kkr takes many off the balance sheet of kkr, but you also take outside money. who are the lps? who wanted to do long-term business with you i and get into tech? dave: you are right. we have a long history of supporting our funds with our own capital and we did here to come over 10% of the find. but we do have a number of outside lps and they range from large pensions and endowments, high net worth platforms and individuals as well as directly

into the high net worth individuals themselves. the nice thing for us, it is a broad mix and a set of lps that have been with us over the course of three funds. we have a lot of rehab in the funds, given our performance to date and i think we are people believing the philosophy of what we will be doing with equity. it has been a nice bit of lps. people see this opportunity ahead of us. it has been a challenging time in technology and growth equity the last couple years but i think equity with a new set and then right before me, feels like it is long-run way of gray companies funded over the last few years and will be maturing in our strike zone. i think a lot of our investors saw that. caroline: dave, i ask a sensitive question because it is a sensitive time and of course there is exposure when you are looking at particularly investing in security companies, cyber companies, they may be

based in israel. how have you been navigating that with founders? how have you been thinking about future investment opportunities and the worry about the ecosystem? dave: thank you. deftly sets a question. first and foremost, hearts go out to the humanitarian tragedy going on there for sure. just heartbreaking. in terms of us, we have had two businesses, one that is actually headquartered in israel and another has a substantial presence there. just as we sit today, we are in constant contact with the business to understand what the implications are of what is going on over there, how it is impacting them as a business and their employees and candidly trying to support them the best way we can to continue to navigate as things continue to unfold. more broadly, we have seen in believe israel has been a great

place for technology innovation for long time. i don't thing there's any reason to believe it won't be for a long time in the future. for us, we will continue to spend time there when we can as things get back to a place where we can travel there and continue to build relationships because we do think in the long run technology will continue to be innovated in israel i'd be a place we spend time. caroline: thanks for answering that. i'm interested in the follow-up. we had a great conversation with anna dougal who runs the females founders fund and she was referencing a statistic that basically 1000 unicorns are out there, worth more than one billion and about to run out of money. you come with this eye-opening amount of money to be invested in growth opportunities while everyone else is worried about the growth trajectory. how do you see this current environment we are in? dave: it's a great callout and beyond the unicorns, there are a lot of other startups that were funded from 2017 to 2021 who

were growing up in a nice way where you reached unicorns status and are still great businesses. this is why we think it is a term it is opportunity to have this capitol now. we think the next couple of years there will be many companies that start getting built into the next generation of big technology leaders, so the way we are thinking about it is trying to be disciplined around the attributes we are looking for in business. i mentioned things like product market fit and a strong management team and great alignment of the management teams so their aspirations of growing the business usually where kkr can help. for us it will be about focusing energy on going through those businesses that probably did not cut the grade that are unicorns status or otherwise and honing it on the businesses i talked about that we can partner with for five to seven years in the future to turn them into hard enterprises. caroline: dave wells, great to

have time with you. we thank you for -- of kkr on the $3 billion fund. we are turning to your city, san francisco. it says it has not answered to an advert. a $4 million ad campaign, will it be the answer? we discussed that next. this is uber technology. ♪ -- "bloomberg technology." ♪ or filing returns. avalarahhh ahhh (aidyl) hi, i'm aidyl, and i lost 90 pounds on golo. avalarahhh i struggled with weight loss and weight gain my entire life. with all the yo-yo dieting i did in the past, i would lose 20, 30, 50 pounds just to gain them over and over again. thanks to golo, i've been able to steadily go down the sizes in my closet and keep the weight off. for the first time in forever, i feel in control.

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ed: the new campaign to reverse the negative narrative surrounding san francisco and attract more companies has started. the it starts here campaign is launched -- was launched by local business leaders and billionaires. karen breslow joins us to break it down. a new, the idea tech billionaire ceos try to boost the image of the city what is striking about this campaign? >> first of all is it is -- it is deemed necessary, for the first time in recent history san francisco has to convince itself and the world it is a cool place to live and do business. caroline: we know that there are peaks and troughs, particularly when it comes to tech but sf was born in the gold rush peered why is this time different? why are they having to lure in and remind people of ultimately what was -- what always sold itself? >> if you reasons. one is the city has the highest commercial vacancy rate in the

united states so about 30% of downtown buildings are currently vacant, very slow return to office, a fentanyl epidemic in the streets, record numbers of on housed people, and i think also the social media affect. in previous booms and busts, san francisco did not have to contend with the amplification of its lows and i think the city has become a character in a political drama. it is shorthand for democratic rule and everybody loves the pound on san francisco. and its problems. ed: quickly, who are the names, the individuals behind this? >> chris larson from ripple labs, don fisher, larry barra of the giants, and several other funders. they put together about $4 million and this is a campaign that will run for years and it is starting now in part because the world will be coming to san

francisco in november for a pack . in a few weeks. caroline: we will see how the world responds. great to have time with you. bloomberg california bureau chief over that ad campaign. that is a for this edition of technology. ed: a reminder and thank you to those that listen to the podcast, apple, spotify, iheart and bloomberg. this is bloomberg. ♪

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