go forward. i think you'll see us grow as a nice component for twitter where it is just a publication promotion but cyber dust is for one-to-one personal communication. ..

look, does anybody out are still have their myspace profile up? do you want people going out looking at -- >> i do. >> you are still friends with what's his name right? >> exactly. >> the whole point is we over time your digital profile gets so big that it has a set of consequences that we haven't even begun to consider. so we will be creating tools and extending the cyber dust digital platform to shrink that footprint to let you gain more control of your privacy and to protect you from who knows what. >> mr. cuban, switching gears a bit, i call 50 cents 1 cent one time. people to remind me. cyber does what for you? >> i have no idea. >> more than -- >> in terms of companies i've started and run 30 plus.

>> i tried to figure it out that it could and that's what i asked. really, what drives you to keep on founding a new companies? >> business is the ultimate sport for me. dealing with the mavericks, i will talk to our guys in talk about the 48 minutes, practice and preparation but there is no sport as competitive as business. it's 24 by seven by 365 by for ever and there's all these young kids trying to kick your ass. i would like to kick your ass, you know? series leader i am so competitive that screw you all, i just want to win. that's it in a nutshell. [applause] >> but you are not in the valley. why are you not based in our? >> no one smart is in the valley. everybody, seriously, there's a certain culture in the valley, and then there's a mini version of that in l.a. and they many your version of that in new york and there's everywhere else.

to me as someone starting companies, i don't have a problem wrote attracting smart people. i can extract people from here the cost of living is a lot less no state income tax. a lot of advantage. as an investor there's arbitrage. we talked about it on shark tank, if you're from stanford and you have a tech degree or an mba or a law degree or design degree, if you don't get an $8 million evaluation on your start, you were immediate. think there's something wrong with you. outside of these three areas that same startup might have a one or $2 million evaluation. there's just as many smart people, just as many great business opportunities in aggregate outside about as there are in said. investing outside, selling inside, to me it's the best arbitrage available and that's worked out very well for me. and for silicon valley now has got a -- where fear of missing

out rarely throws money at everything because they want to find their unicorn. hey, i invested into a contest in uber, i invest in facebook but what they don't tell you is the other 99% of their portfolio that has failed. that approach doesn't fit well for me. that's led to mistakes like travis was just year, i turned out, travis and i come invested in one of travis' earlier company that he probably approach the first or second on google and we couldn't greece we went and got some who gave him a 10 x. valuation and that's probably the one i wish i could get back. i invest just based off an e-mail. we have stayed friends but i got my money back and i was thrilled to death. i've got 20 of the great as well. >> with something if i were to put you for an investment to what something i should know about you?

>> about me? >> to get your money. >> to get my money i'm very very transparent with all my companies. you should of the companies i'm invested in but you should know why i'm invested in those companies, what value they bring to the wide company is going to be great. i think a lot of people come here to go in the they sell themselves which is fine look at me here's my pedigree. they sell the idea which is okay. but then they figure that getting funding is the end all be all. i got an angel. these people agree with me so this must be a great idea. i hate that approach but i want to know not what your ex is going to be i know -- i want to know how you're going to get from here to being insanely cash flow positive because that makes it a whole lot easier to continue to fund it. >> such great answer. through shark tank at all these investment you've done, what

something about a picture that make your eyes glaze over instantly? >> that's pretty easy. when someone walks in and says the market is x. billion and basically implies that only get one-tenth of 1% of the x. billion dollars it would be huge company because that means nothing, right? we all can talk about taken industry, say how big it's going to be in it makes it seem so achievable if we just get 1%. when in reality that takes no thought, no intelligence to do whatsoever. that's probably going to turn me off and have a single right off the bat. >> on the flipside what's the best way to do it? >> tell me what your core competency is, tell me why you're great at it tell me how it is to scale. >> that's it? >> pretty much. >> going forward with shark tank how did you get involved with that? >> mark burnett came during a

regimen versus coming on the air but that's right when the fcc sydney so abc wouldn't let me on the show. been when a case can dismiss they contacted me again and said, okay, that looks like it will be behind you you -- would you like to be on the show? honestly i didn't think the show would last a i thought i would do three episodes as a guest and it would be fun maybe system good deals and will be over with. the show has blown up and i came to learn having done it and having heard the response from people that the show really isn't about this is the it's about aspirations and inspiration, about telling the whole country that the american dream is alive and well. people moved to the valid because they believe in the american dream, believe in their abilities. but in middle american places where there's not a lot of money they want to see a family from iowa who came up with a screen protector and is now doing 1 million in sales, or any

number of different examples because then they can project themselves. what i've since learned also is that shark tank is the number one show on all of television watched by families together. speak why do you think this? >> if you have a seven year old nature will come a 12 year old 15 year old and they're sitting there watching at home with you on a friday night saying i like this idea or don't like this idea, or i wouldn't pay that much of the valuation, understanding what equity is can understand what profit and gross margin is. parents you'll be proud of you kid when they're talking about that instead of talking about who's number one on the charts tell me the greatest hits. i think it's a bonding factor that hopefully we are evolving from. i want to see my kid be the star quarterback or see my kid be the star of the basketball team to him being an entrepreneur and being excited about business. i guess you can call it the new age lemonade stand. >> there's a theater for

entrepreneurship right now. we see that with tech crunch, the battlefield to you involved with that at the beginning in the early days with the companies i think from your class in 2008 grow up and blow up. >> big time. >> switching gears one more time and we will wrap it up shortly, but he recently talked about companies moving overseas to avoid u.s. attacks. what's wrong with trying to make your company more profitable? >> absolutely nothing is wrong with trying to make a company more profitable but you have to ask who owns your company? shareholders. i think there's a misconception. the conventional wisdom is you buy a stock and the ultimate goal is to see the price of the stock go up. that's wrong. you buy a stock and you want the company to increase your net worth. they are not necessarily the same. i'm buying stock in sara lee or pick another one of the

conversion companies, and all of a sudden now they are just moving overseas jury to avoid the taxes they otherwise would be paying. when one company does it and went to come is due, maybe not so much when that becomes a trend and now companies are buying little startups in england for startups in some other country and we're losing all that tax revenue, who makes up the difference? right? and that we are all making up the difference and after making a difference the marginal cost of our taxes goes up 1% 2% 3% to now all of a sudden because of his companies trying to increase their bottom line, my net worth goes down because we all fear in of the tax% to compensate for the. whereas on the flipside let's work on changing the tax rates here, let's come up with solutions but the markets for improving profitability are very efficient. accountants and cpas and lawyers are going to find ways

to work around things. what turns off, starts off as anecdotal turns into a flood. once that flood hits, what are you going to do then, right? i like investing in companies and there's another part to the. when a company moves overseas and takes that tax revenue with them, they're some impact on services. somethings got to give until the revenue is made up. that negatively impacts those customers. all of a sudden it -- taxes going up they might not have as much money as it will give them particularly if their walgreens who didn't move overseas and they could have a negative impact on their business long-term. >> so we're in this together. last question. as the owner of the mavericks do you have any advice to the new owner of the clippers mr. steve ballmer? >> i e-mailed steve, told him to use cyber dust and then i told

him that he shouldn't be so shy. he's got to have a lot of catching up to do to keep up with me. like anybody else can you just want to be yourself. fans want to see an owner who eats, sleeps and breeze his team. y. want to see it's one thing to be a microsoft when you're the ceo and maybe a tape of the speech gets linked to tech crunch, right? it's a whole other thing when one of the differences, take a step back, one of different things from running a public company is there's no beat reporter at how to write about you everyday. there are not 20 blogs that are having to come up with something everyday like there are for the mavericks or the clippers. so everything he does is going to be recorded. it's going to be interesting to see how he is on the sidelines, with the becomes very unaware of the camera, right? or whether he stays in so. i'm hoping he's crazy because then it will give me a little sidekick. >> take a little heat off of

your. >> i don't have a shit. it will be 15 years in january and you haven't seen the mel or slow down. if you don't like it and that's your problem. >> while the mavericks make it to the playoffs this year's? >> we are undefeated. i'm happy. i'm ready to go. >> think is much for your time. >> mr. burns, i appreciate it. [applause] ♪ ♪ >> pretty good stuff. how did you guys feel about that? oh, come on we are all working hard at your. how did you feel? doing something that doesn't like -- our next battle is with the main question of disrupt if you're an entrepreneur or an investor. what are we going to be something? what are we looking at to throw our money and? we have some amazing investors. please welcome omar hamoui from sequoyah, aileen lee from cowboy

ventures, as well as our moderator. clap. ♪ ♪ ♪ ♪ ♪ >> again i kind of skipped over the whole disrupt binding but it's cool. we're doing three competitions every single day. how many people actually still use mine? there's like six of you. you guys are great shots at winning. -- vine. so please disrupt the transfer and tomorrow we were doing another one maybe around instagram and maybe one around twitter to keep your eyes peeled for that. lots of really cool prizes. we have giant chairs which means i've to be appear for a long time without very much to say. does anybody have a question?

no? okay. why is it so gold? cold, actual question that the first answer is that there's like a billion bodies in here and if we did make it cold you guys would complain the other way. the second recent -- [booing] >> that's not true? i've been at a district with a busted ac and you guys were mad, like mad mad. but you guys would rather it be warmer? [cheers and applause] >> i will spend my time the next 20 minutes during this negotiating adults who i can do for you and i will come back and let you know where we are at with the ac. you guys have an optimal temperature? 757 could 73, is that okay? no? 75 this summer, that's what i'm saying. i will aim for 75. if you guys have a problem with that, tweet me. i know the ac is the most important thing let's focus on

these investors. you want to hear the names begin? susan said yes and she's the boss. we will go with yes. omar hamoui from sequoyah. aileen lee from cowboy ventures. james slavet from gridlock. danny rimer, and are coeditor, matthew chandler reno. -- that japan's arena. >> let's talk about some stuff. first of all welcome. welcome to the stage everybody. what i'm going to do that way i can see everybody. all right. there's a lot of things we could talk about. when the things interesting rightis the sort of this issue we have with hiring engineers in the valley. it's becoming so easy.

i use these in quotations. it's become so easy for people to get funded get money start their own thing if the tools are there. of the money is readily available in general. so what happens when it's easier to start a company and get funding than it is to hire an engineer's? >> so, i will take it. look but i think someone i think paradoxical but important approach for a ceo running a company in this environment is you have to recognize that the people who are working for you the best people who work for you probably what some point want to start the own company. you have to actually be focus on how you help them to accomplish their goal and degrade as

opposed to just like filling a role in your company. i actually have a story on this. i recently, i've been on the board and the ceo asked me to come give a talk at the company to his engineer and product team and around how to start a company. light, the initial thought on how someone would come in and do that to james basic like asking someone to come train your girlfriend like how to meet you guys in a bar, right? the paradoxical part of it is if you want to attract and keep on some people who are really entrepreneurial come yet to make them feel and also backup that you're going to support them took office with a want to confiscate and their careers. >> so if you are looking at the companies out there right now kind of a grouping of companies that are relatively hot, what do you think the dream job for a not engineer is? you can answer with one of your portfolio tech-support photocopies. if you had to pick one what would it be? what do you think the right place when india that wants to

work at a company not start their own thing yet, where would that be? >> i think i guess what i see as i think it depends on what the engineering is looking for. you know i mean a lot of the jobs of a venture capitalist is to be a recruiter and to be had under. and i think in many different cases, it depends on how early and how much responsibility the engineer wants and are they going to be thinking about having more of a specific role in a more mature company, or do they want to have a more you know not impactful but more definable in terms of a culture by joining an earlier company? if you are joining a company like etsy right now, it's very different than join a company like codex right now. they're both phenomena interesting rules as in a

generic but you're going to have different priorities that are enmeshed in what you are doing. >> so let's shift the topic. a lot of the attention that comes from the press side of things right now is based on the founders of companies have acting like a little hybrid. sometimes they say things that are pretty insensitive or deemed insensitive, or they have a complex about the way they handle their business like it's a very mercenary and very out there, very forward. so these sounders, does that matter when you're talking to an investor whether or not you choose to put your money there? d.c. that as this will be a problem down the road, or it doesn'tdoesn't matter because we will summon who runs the company first? isn't a factor in whether not you invest? >> i think the person you're investing in or the teams that you are looking to invest in is one of the key factors in making a decision. this is not just your kind put

your money somewhere quincy what happens five years later. you are joining the team trying to board with the company and trying to work with this person. so their demeanor, the way they run the business, whether you think the ethical, able to accomplish goals whether you think they're driven to all those things factor into law. i think those are primary topics of conversation. >> i think there's a distinction between someone who might be difficult to work with or somebody whom i perceive that person is difficult to work with us sometimes and someone who is unethical. i have i think many right entrepreneurs can be difficult to work with. you have to have this incredible force and will to make something happen. i find working with people who can be challenging to work with. i think that's the important distinction. the other quality to look at is most on to produce who are successful are doing it for the first time so you can't actually look and say with a successful

in the last company they started? you can understand if someone is self-aware open to feedback and learning and if they will have a compounded daily, weekly monthly learning right that is beyond the onto the scale spent that's an area where we're investing and -- investment board to know. a lot of companies for a long time don't have the head of h.r. so some of the bad behavior may be because they aren't really getting coaching, a bunch of young people have a working professional organization in the past and coaches or investors or members of the board or not giving them input on the kind of environment that they should be running, the professional that will attract a broad diversity of the best talent. i think that's an opportunity for the investor community to do a better job of getting input in setting expectations for some of these teams for like what's the best way to run a company.

>> you have some young entrepreneurs and they will hear this sort of tolerance and/or promotion people difficult to work with. you can create a situation where someone is not difficult to work with like maybe i should be more of a jerk because i'm not doing this right. i need to be more aggressive. giving your first question of how hard it is and retain people, it isn't hard to be a decent leader and a decent person. we should all kind of hope to look for that. look, there are some people who are harder than others but in general i think it's important you know easy to work for. >> on that culture front when it comes time to invest in a company, do you consider social good components of the company? whether it contributes back to a larger member of the populace or whether it has a positive impact on carbon footprint or something like that? do you count that as a factor? isn't one of your major checkpoints when you are considering investing in a

company? >> i will start with the. i guess what we've come to realize is that it's actually from a generational standpoint we are actually seeing that millennials expect a social commitment and are looking for businesses that have social responsibility being integral to their business model to actually be interested in the businesses. and so i guess what we would say is we don't see them as being mutually exclusive, but actually the businesses that have social responsibility as far as the business model are likely to be the most successful businesses in their space. i was mentioning etsy before. i think the reason why etsy has hit a nerve is because the customer wants to be able to help that make her make their vocation their career.

as their passion becomes their vocation. similarly with the good eggs, we are seeing a with farmers and patriotic. we are creators. so i suspect that this question is going to become less and less relevant over time and it's just going to be part of most of these business models. >> so if you are talking about cultural things in the valley there's something we need to talk about. there seems to be an overwhelming abundance of male founders versus female founders. i don't think we need to kind of the labor that. it's pretty much of that. we don't need to talk about whether that is true but i think the important question is how do you making private more inviting or what is responsible for that disparity and how do we change that? i'm going to ask -- i'm not asking you to fix that on stage or although that could be nice if you could do that but i think it's important to think about why. do you think it is how that

might be fixed? >> i mean i think, i think, you know there's a number of issues that contribute to it. i think fundamentally it starts with education around technology and engineering and other things that we care about in the valley. also has to do with the framing of the problem. a lot of times the problem is framed as almost like we need to do this good thing by bringing our women into the industry or insults like it's some kind of something as a favor as opposed to something that is necessary because we will all benefit from it. we are all going, there are business outcomes that happened that are negative by not having more women in these positions and starting companies. there's a whole segment of society and all the value it could be brought and created. looking at it as a problem as opposed like a favor it change the perception of people and what they're willing to do to fix it. >> i talk about this for a long

time. i think there's a pretty broad spectrum of stuff that's happening in companies from things at the extreme like harassment and gender pay gap, which are basically illegal right? i think some people just don't realize that those things are actually illegal to put your company at legal risk. vendor stuff that is softer on the spectrum around culture and people feel like they're not supported or favoritism or things that people say that kind of unintended consequences of just getting uncountable or not knowing what are the right things to see. i feel like there's probably an opportunity for some kind of a training program or something to go into companies to both help them audit where they are in terms of like do they have a fair environment, and then how do they kind of unpack some of the bodies of stuff that goes on everyday that creates a more uncomfortable environ for people who are not like the majority of

employers. i feel like we don't have the tools yet that we need but i'm hoping that kind of the stuff coming out because every day it feels like there's a new article, a new study for example, of people who are of bad stuff happening. but as a community come together and figure tools they can make more systemic change rather than kind of like an ice bucket challenge type thing which is awesome for awareness but not create systemic change. >> the only thing i was going to say to the point is i mean to the point of sort of auditing. so we do a regular audit of how many of our companies of the 140 companies that we have had women as leaders or founders. and we're at 15%, which is actually surprisingly high for the peer group but it's a massive issue. it's further amplified by, look

at my portfolio most of my customers our women. so there's this massive disconnect. so part of it is obviously thinking okay you know can we find a partner that obviously could complement the work that we are doing? obviously there are a lot of after the six to make a partner but that is something that the other one is creating using those founders to support new found a new entrepreneurs that we speak to. it's clear something that has to be increasingly addressed. >> one observation since we've been around as a firm for 50 years, a longtime. if you look at actually a partnership of greylock several decades ago, it was mostly white protestant men in lieu blazers. if you look at my county

industry has evolved just over the last couple decades most of my partners are now asian indian and jewish, which kind of mayors actually what has happened -- >> but still male. >> still male, my next point. we have talked about this issue a lot internally i do think the proportion of women who are founders and ceos in the proportion of women who are venture capitalists, these two things are inextricably linked. ..

and the most kudos for making the biggest change. >> cool. i think we fixed all that so it's all good for tomorrow. okay, so if you -- how do you tell somebody they are not a good founder. somebody walks in, gives you their pitch, easier than not and then they leave anything to yourself they are not the right person. maybe the ideas that come of your not a good founder. a sensitive situation they come to you with hopes and dreams you have you tell them don't do this? this is not right for you. >> i'd be good at delivering that message. so what i would say is typically

what we see is that the most successful founders are product oriented and very instinctual around the market opportunity we are going after. so you think we can muster and from pandora played the piano bar and struggling while he is developing on the side. so one thing we are typically looking for is an experience that emanates from a founders experience in a company that can emanate from the product. that is one thing of potential disconnect. that said, there are company started by folks who want paper don't look like they're out of central casting that end up being really, really successful companies. several of the folks here invest a lot in marketplace is mrs. but the most successful marketplace businesses. they have founders that are not guys who have done it before or women that have done it before but the one attribute they have is they are incredibly resilient, scrappy aggressive

really make it happen because for example, the marketplace can get liquidity and i can actually be really hard to kill your business. i guess our reflex is this product instinctual founder with the right that wrong. but there are plenty of -- >> so you are talking about basically i believe this person will do this, but i would tell them know about this product but i like them so much a want them in my fold. >> now, i am saying you can back somebody who has a great domain expertise and product orientation or you actually see a situation where someone is not a central casting, but they are working. they be the person is better than appears on the surface or has the right grip and determination and focus jamaica business work. >> yeah, first of all a couple of things. you should evil to tell someone

you are meeting with come in with the founder and they are not a good founder in the meeting. you don't have to do a follow-up. if you can't tell them in the meeting there something wrong. the second wrong. the second one that gets typical is in a lot of ways in my case and probably another folks cases, there is no central casting for a founder. you're looking for people crazy enough to go after their life's mission with the entrepreneurial venture that has most chances to not succeed. so it's really difficult to find a pattern recognition. but if they are not clearly going to be successful as a founder, then it is quite obvious pretty quickly and the idea is not enough to actually make a business succeed. all of a sudden, at least in my head, if the person is clearly of high caliber, high intellect but not a founder, i am going

back to my headhunting sorted database of all of the companies that i am thinking through and pitching man you know, maybe you need a little more experience working with another comp any. maybe you would like to do that before you start on this because here are the five reasons why this is not a great idea or you are not ready to start the company. >> it's interesting to me that categorical keeping someone is not a good founder. exchange, ideas change, people change. for my own experience i was in a good founder i'm a first come the second, third, but the fifth one turned out that worked out. along the way someone had told me you're not a good founder of the second one, maybe i would've stopped trying. you might want to say not now or try doing this or maybe one more job. not a good founder is too much.

>> i'm trying to think of a founder who hasn't had bumps in the road. there will be functions of development for every leader. the board in the investor should have it close enough relationship to the founder to go and have a conversation so it not like out of the blue sun meeting where you walk in and say you're doing a bad job. it has to be a constant dialogue of how are you doing? where do you feel like you might have blind spots? do have a good enough team to complement you on the stuff you don't want to spend time on or not good at and how are we going to help you develop? i think there's lots of examples of people i've worked with in tech titans today who have not always seemed to be great founders but dave on upholding great companies. it just doesn't happen miraculously. you have to work on it. >> excellent. we have 40 seconds left. really quick way what is the

top two most interesting companies you are not currently invested in? >> i would say huber is definitely one of them. i'll have to think about the second one. >> okay. >> uber and sarah knows. >> talk to not currently invested in. i would say how and know me. >> i'd probably say -- [inaudible] and another one. stalker. got another one for me? thank you very much. appreciate it. [applause] >> i have breaking news. super important announcement.

the ac has been turned down. [cheers and applause] i know. i went back there with an iron fist and i was like eyes my audience is serious about this. you got to take care of it. they did. the sun is coming right now and were walking a delicate line. let us know if you get too hot. i know you guys when you saw in -underscore hundred startups out there. that is just today at startup alley. they are super important. they are all really, really cool and you have the opportunity to vote from startup alley and participate in our battlefield this afternoon. the voting closes at three so i encourage you guys during lunch during break or even if you want to take a walk, had out there check them out, figure out who is your favorite and vote. a website is long and a good chance i will mess it up, but we'll have it on the screen soon. startup alley access

2014.techcrunch.com. in the meantime will bring up our next guest, elizabeth holmes from sarah knows will be speaking with john shieber. give her a warm welcome. >> hey everybody. i am john shieber. the women huddled the energy we need snow introduction. i'll introduce her anyway. jordan already did here to have a first-year for a techcrunch event in which a look at my blood drawn life on stage right now so you can all see what the process looks like here we have a license phlebotomist who was about to come out and take my blood. if there's anyone here who are squeamish, i urge you to look away while the magic happens. if the magic happens. come on out of we would get this taken care of. move that appeared.

get that right they are. we will get to the meat of the interview in a second. so what does this entail? already. there are files that are coming out for those of you who can't see what is happening. in a traditional process as we all know, i would be rolling up my sleeves. people would be tapping my veins. there were be all sorts of processing a big big needle. this involves no needle but a little sort of warming packet than i am getting. i'm sorry i'm giving you the play-by-play but this is the best critical about it. elizabeth, how many times have you had this done to you? >> operably tens of thousands. >> all the time. >> when was the first time he did it? i understood from the fortune

interview your little squeamish about blood yourself. you might be the first team the first team of folks to start a billion dollars blood is mr. multibillion dollars blood business. what was the first time like for you? how did you prep for a mentally? >> you are exactly right. needles is the only thing i've ever really been scared of. and so i figured the first time i did it i had to do it in front of a group of clients and investors so that way no matter what it would look and less because i'd to make it be painless and i did and it's psychological. once you do it the first time, you learn it doesn't hurt and exactly what you do here is the process we've developed to replace traditional phlebotomy for the processes getting tubes of blood in the arm with these tiny nano teeners which you see collect just a few drops.

>> okay we're already. we are all set. things are happening. i am about to get poked. >> tell me whether you think it's painless. >> right, exactly. >> good god. no, it hasn't started yet. there you go. and there it is. it was done. quick and painless. i have had more pain preparing for this interview than i've had getting my blood drawn right now. i appreciate it. you were in stealth mode for 11 years. how did no one leak? like how did no work it out about what you all were doing and how does you retain over the course of that period of time while you're doing all this development and you can't say anything. >> well, we had a lot of work to do. it's a very big mission and a very big role.

we wanted to build out the solution before we talk about it. as a result we didn't have the website. we didn't have to talk. what we were working on before we finished it for about 10 years there was no press release in the media and last fall when we reached a point in which we can begin to make the different structure accessible to individuals and clinicians are radically, we did again to talk about it. but it was very simple. just don't talk about it. >> the first rule, don't talk about theranos. when you approached customers while in stealth mode and try to tell them about your vision and your business, first of all is

that it? fantastic. can i see you? okay so this is the amount of blood that is needed to draw to do a test on whatever i have and probably beaux-arts legions. thank you so much. i appreciate it. so again you are in stealth mode. you are trying to up all these customers. how do you get them to sort of permit with sight unseen story technology that is essential that you are all still developing? >> it is at a point now in which it is directly available to people as an alternative to having big needle stuck in there on. the approach rita was to have people try it out to see how it performed and it performed well and work with us. a lot of our work was for

pharmaceutical companies. there aren't that many pharmaceutical companies, selected build the relationships, we had the opportunity to deploy our system and continue to build our infrastructure to get to this point. >> he raised $400 billion schriever nano did you start generating as those coming in where are you in terms of profitability versus the need for additional capital. >> so we've been putting cash operations for some time. we first started generating cash operations through our work for pharmaceutical companies a year or two after i started the company. and that has really been the platform on which we build the business. i tried early to get away from what i call the equity umbilical

cord where you don't really have a business until you are generating revenue. so that has been the primary foundation for growth. we are a private company, so we have put our revenues are. >> well, you know you can talk a little bit about them. give me a ballpark. $9 billion? well, we will get back to that. so many companies have tilted at the window of driving down the cost of testing and make it more accessible. how have you all manage to do a? what is it about the process quick my blood was just wrong. let's say i wanted to get tested for a panoply of different illness that i may think i have because you know, i am paranoid about all of that stuff. what happens next in the process?

can you walk me through what my blood would go through as it gets tested in your lab? >> yeah, absolutely. we have redeveloped the laboratory infrastructure from and to men to be able to make this possible and one element is a tiny sample. another element is the cost. the infrastructure that we build, we have now begun opening will be call our wellness centers and which are locations that are located inside walgreens pharmacies and we've announced our national partnership with walgreens the context of our expansion across the u.s. when someone comes into our wellness center, we will scan their insurance card and identification of a built-in electronic infrastructure to do real-time eligibility fran and so when you command you know how much that test is going to cost

you. >> , should say typical test for a normal sort of a array of legwork. how much would that cost for somebody to do now? are and you're all slab. >> yeah, so when we announced our infrastructure we began pricing our test at 50% off of medicare reimbursement threshold to exactly change the cost curve in terms of testing. since then, we have begun to further reduce the rate at which we make those stats available, all the way down to in many cases 90% off of medicare reimbursement rates. >> 90% off medical reimbursement. what does that mean for somebody who in a minimum wage job for someone who might not have insurance or might not have the bare minimum. >> it means you could get a test done for $1.99.

>> $1.99? and that is now? >> at us today. >> wow that is pretty cool. i think that is a technical term for what you all are doing. pretty cool. when he started off with this vision, i'm sorry, i jumped ahead. so that is the insurance component and the pricing component of it. on the backend with the lab what is happening to the miniscule amount of blood you are testing that is enabling you to come up with a full range of results? >> exact way. from the time you are in the wellness center, once the price points have been identified for someone, even if they have a deductible how much it will cost they can decide up front whether they want to purchase that surveys as opposed to getting it will in the mail three months later for some unknown amount. the little nano container you saw had has a barcode on it attracts a stamp old and when

the samples get to our labs to our lives, we have done is redevelop all of the chemistry associated with running these tests on traditional platforms to make it possible to run any laboratory tests from a tiny droplet of blood. so what happened to that sample is it will be run through those chemistries and we will also build out analytical systems on which to run the chemistries because traditionalist mentation requires much larger tubes of blood and then that data will be electronically signed to the ordering physician and integrated into the emr system electronically. >> when we spoke, you mention you've done some work with the military. butter the application and how do you see the business expanding beyond wellness

centers? i don't think that is the end goal. >> well, there is a huge opportunity in the context of decentralizing the testing infrastructure to be able to make comprehensive laboratory information and it's important because it drives 70% to 80% of clinical decisions assessable at the time it matters. so when the trauma contacts, for example, the ability to get close to real-time data in the context of being able to stabilize someone, for example can make a difference in terms of lives saved and that is something we are very inspired right equally in the context of rural or remote areas where there is no centralized rabid tory infrastructure. the ability to put in place is decentralized infrastructure

leapfrogging over the lack of conventional infrastructure are similarly to a cell phone into landmines in china that is significant because if you can put the decentralized laboratory testing infrastructure in place you can then lay the foundation for decentralized delivery because you have the information you need. >> so you layer sort of a remote health care remote consultation on top of a remote testing and you have an ability to provide rudimentary health care globally to anyone who needs it. >> exactly. you want to own the other piece as well that remote health care consultation peace and the communication access of the infrastructure? >> we have built-in average of all software from this infrastructure. we were talking before this about one of our favorite

quotes. software will eat the world. the communication they are we are laboratory company so we make the data accessible to the time and place that matters. there's certainly the opportunity to link him. >> have you talked to some of the folks now and by the way we are going to give you 5 cents now every time someone says software in the world. that just makes sense. it's only fair. but back to what we were talking about have you been in conversation with some of the folks who in its remote access, remote consultation already? >> we have been in contact with people attempting to provide care in very rural and decentralized areas that are struggling because they don't have access to the laboratory data to be able to provide the

kind of care that is needed and that is going to be a really important area. >> now you have what is perhaps the most accomplished board i've ever seen. sam nine former senator, bill frist, former senator, former general with the marines. admiral? i don't know what they call those guys. you also live your lawyer. why stack the deck so much with so many people. and kissinger is on your board. just throw that in there. why do you need all of this? what is it about the industry that makes you sort of collect civil servants of the highest caliber? >> we've never thought about it as stacking the deck quote, unquote. but we do believe technology is an incredible role to play in

enabling resolution policy issues. in health care the ability to use technology, for example, what we are doing and just pricing the way we are for medicare and medicaid is saving medicare and medicaid hundreds of billions of dollars on an annual basis. with the opportunity to leverage what this country does so well in terms of creativity and innovation to facilitate policy change we have been very lucky to be able to get people who really understand what it means to be able make a systemic change in the world and to be about to advise us as we work to do that in reducing health care costs and changing outcomes. >> now, you and i both spent time in china and china is very big on five-year plans. when you look at the next five

years for theranos, where d.c. the company? what is the goal for the next five years? where are you all going to be? >> the goal is access for every person, no matter how much money they have or where they live. access for us in part means the example because 40% to 60% and people in our country don't get tested because they are scared of needles were they can't afford it. it also means operating in the location closest to where people live or where they get care and that is both in our country as well as other places throughout the world. >> so do you start selling the technology to people are licensing it out to set up these centers anywhere? words you use yourself men and operate sanner is at a low cost around the country, round the

world? >> right now we are operating inside of walgreens in the u.s. outside of the u.s., it will be a different model and it really depends on where you are. so we are looking up at sort of systematically based on which location we go first and what local infrastructure is rad in place or whether we need to actually build the infrastructure ourselves. >> are there any other partners other than walgreens that you all are going to market with? >> well, we have announced a relationship as something that is really important context of being able to change the inpatient process in terms of the amount of blood and transfusions associated with the amount of lead people have to get taken in a hospital setting, but also at the hospitals increasingly become accountable care organizations, the need to save money and therefore keep

people out of the hospital. that is something we are focused on. >> what is the biggest obstacle to the adoption of this stuff? when you think about the problems you have scaling what is the thing that worries you the most? >> well, as we build our company, making sure we have the right people is what it's all about. as we get the right people, we can make sure the service we provide person by person is asked on and we have been extremely long-term mindset with respect to the opportunity to realize what we care most about is literally person by person, have we created a wonderful ex-parents and keeping our growth around not. so people and excellent service. >> we are actually out of time.

i appreciate it very much. >> okay, all right. >> how are we feeling about the temperature? a little better? albright. now that i solved your first world problems ,-com,-com ma we are going to bring up someone who has been solving real-world problems for quite a while. should the entrepreneur in residence at the united nations. you don't think those things go together but they do and she will explain why. she has fun is to share with us. please welcome to the stage even submit gore. >> first off, she is not related to al gore. so stop asking if her dad invented the internet. up until today, what have you been working on? >> so, it is then amazing with united nations foundation.

i've actually been working with all of you to understand how your companies can save lives. whether they would be profitable solutions social solutions and the u.n. has been open for business to talk innovation, scale immigration. my favorite is what is going on in emerging economies that are depressing everything. >> that is a huge area for start up your facebook today announced it has a hundred million users in africa and 50% of the internet connected populatiopopulatio n. one is trying to work on dance. there's a lot to be done with bringing texas to the developing world. but you are working on something new. today, elizabeth is announcing at techcrunch that she is the new entrepreneur in residence at dell computer. >> that's right. >> war. that is pretty awesome. so what does that mean? >> i will let you know. i'm going to have a baby and then figure that out. we are really excited eared my first conversation with michael

dell is technology is the only force that is possibly able to enhance human potential. the united nations and dell are not that far apart when it comes to understanding if we don't advanced technology, make it accessible for all and i mean everyone, we're not going to succeed. the second area is all of u.s. entrepreneurs need 500 million jobs by 2020 for the eligible workforce and they come from entrepreneurs. 70% of jobs come from much for doors globally. we will collectively be pushing the policies needed to support entrepreneurs. >> so it is why dell would want to would want to help that they bring technology to the world. why did you pick dell? >> well we picked each other. i've got to be honest. we're proud that michael dell became the first vocal advocate

for entrepreneurship for the foundation and we developed a relationship and understood if we don't work with entrepreneurs globally to give them capital to access technology in a better talent, reduce regulation that we will not get the creation we need here we will not get policies we need. so i think we stood on common ground there pretty quickly. >> you talked a lot about global solutions. that seems like a buzzword out of the enterprise world. i can't say i don't expect from dell. what does that mean? what is an example of a global solution? >> apology like down at your phone, we have more for than people by the end of the year that the mobile phone in my mind has been a global solution changing everything. if you look at how we use it now for data collection to reduce the attraction of disease. with ebola happening right now

there is no way without the technology to track and try and stop it. it can also be found in completely innovative. there's some great companies all of you out. drums are such a bad name that we are using them for dissemination of vaccine and tracking refugees and a lot of very positive things in the world. solutions can be profitable and save lives. >> silicon valley ecosystem gets a bad rap about being a bunch of people making money to make money or to make themselves rich. what have you learned in your time at the u.n. to learn what we can do more to contribute? you work with you and melinda gates and they find to give away most of their money in their lifetime. what about the average tech worker? wolof but not super rich gridlike people in our audience, what can they do?

what can we expect these workers to do to donate and volunteer and help? >> welcome all of you can very quickly look at your triple bottom line. it is something i talk about a lot. today you start your company you can understand yes it is going to be profitable, but also how does that impact people on the planet? most entrepreneurs would be a long time before they can write a check and that is okay. their technology might have an application that can save a life, that could advance the work of the community around them, whether hearings have whether hearings have been cisco or refugee camp. you'd be surprised about all the solutions that everyone is looking for that is just in the start of communities. so it is not just about writing checks. it's understanding how technology can save lives. >> sometimes it's a trade-off. you have to figure out where you allocate resource, make a difference or not. if you're a public company that

means entering shells or does who constantly want more profit. you've got to make the act next milestones to keep investing in you. how do you find that balance of her notch for newer? >> well this generation of much rigorous look at it from the day they open their business. part of their business plan. we understand consumers want that what companies they invest in there looking at the world around them. the reason i was so attracted to doubt if they were private public private again but they've always maintained a commitment to watch for newer ship, to sustainability profitability, but most of all this is what's important that they provide their enterprise-level solution to companies whether they were with 10 people are a multibillion dollar's companies. that type of thinking they really need to support everyone for job creation for the policy we need. that is what's going to fuel all of these businesses to be

successful. >> i really hope the we are a social returned here this is something that matters to us. not just better companies maximizing profit. would like a lot of profit the more social good than just profit. i would like to see more come forward and talk about that. we'll have a better time recruiting company is to become part of your portfolio if you are legitimately trying to make a better impact in the world. when it comes to doubt, they do a lot of humanitarian affairs, but there's a lot of talk about when is it okay to make money saving a life? how do they handle that? how did they decide with their margins are? do we make more money or save more lives? >> well, i hope for everyone to debate on can you be profitable and save lives actually dies. no pun intended, very soon. because you can be a profitable

company and look at the technology with life-saving applications. not all examples. the translational jnana thousands and thousands of units of data when they look at kids with cancer and try to make tough life-saving decisions. dell goes then uses their clout and data and everything in their analytics and shortens the decision making for years.two minutes. i'm okay if that's profitable as my little girls life has been saved. another area we can but god is most of the entrepreneurs, 90% or so emerging and developing countries are solving problems of profitable companies. they will be around a lot longer than charitable donations would allow them to be. it is completely fine to be profitable and save a life. >> we are seeing now with common air funding for nonprofit companies. ones that can simultaneously make money in one part of the

world and save lives than others. one that will educate families in india about how to care for people that would normally need to be in the hospital had to give them how medical care and they find that by selling the same service in the bay area and teaching less their families how to do the same care at home and take the money and the able to get the service away for free in the developing world. that is a great example. and gir that sounds like a cushy job to me. you get to be a notch for newer without a startup to bust her wrath on. what are you going to accomplish? >> i feel like i have a lot of pressure. >> you really do right now. >> i'm actually do this afternoon, so we've got to wrap this up. no dell is an incredible company and the pressure i feel is that michael dell and the whole company is made a huge to

provide technology and also policy objectives that take the eight out of 10 entrepreneur sale rates down and help create 500 million jobs through the entrepreneurs they work with. that's a lot of work to do. i don't think there's any cushion not at all. they are committed to it. i'm committed to it. we are excited about it. if technology defines all of us this is a good company to work for. >> i'm excited to have somebody who's heart is so aligned with helping the world and not just taking money of one of the biggest companies in the world. thank you for your commitment to that effort. thank you for coming in making your announcement here. thank you everyone.

>> up until now u.s. foreign policy towards cuba did not exist. it was u.s. policy for the elections to get electoral votes in new jersey and in florida and to get political contributions from wealthy cubans in new jersey and florida. that is what has determined u.s. foreign policy towards cuba. or the first time there is a foreign policy towards cuba and that is what obama is doing. he's taking the best interest of the united states into account and not electoral policy nor political contributions.

the fact of the matter is we are going to have to deal with cuba because changes are coming. like i said before, only two were three still walk around and they all have more than 85, 87, 89 years old or they cannot last much longer. you have a new generation that is taking over. take a look at the central committee of the communist party of cuba almost 90% are under 55 years of age.

>> next, more from last year techcrunch disrupt conference and services go. this annual event brings together entrepreneurs and venture capital investors to talk about the launch of the latest products and services. next you'll hear from braintree

ceo, who talks about his company and the rollout of a one touch mobile payment system. also aspen institute president walter isakson and on his book, the innovators, our group of hackers, geniuses think he created a digital revolution. this is about an hour and 15 minutes. >> number one fan down there. really excited about it. i hope you all had a great break. they say that the best things in life are free but we all know the most important thing in life is money. this guy knows quite a bit about it. please welcome to the stage though rady from braintree and our moderator. >> albright. so i went checking our oldest

techcrunch post and it's been basically almost a year to require braintree for $18 million. a year on how is that going? >> is going really well. a big part of the premise only came together with paypal was we had built a bunch of things that were bursting the industry around mobile payment, those kind of things. we were working with the next generation and others be one of the premises for us is even know are doing 14 plus then we can take it to a much larger audience and build a lot of products that we would've had a harder time building on our own. our premise was always really easy access to the most sophisticated payments in the world and the opportunity to open the rest of the world was really exciting then. a year later we launched. a few months ago we had paypal

included in lots of other things that are fulfilling that promise. >> and this is your fourth company, right? >> which i've been a part of yeah. >> how is that different in your career versus dearly once you did? >> what is interesting about this is having it done it a few times before having a strong-minded foundation, where want to go, and ceo of ebay and i spent a lot of time talking about how the next several years of payments will play out. did we really have what it was going to look like. that work on the front end has really bad at have a much better experience on the other side of it because all of the things we are building we had talked about. >> speaking of making mobile payments come in there something you wanted to announce today. >> that is right. but one dining experience that we started with input and bade out with paypal a few weeks ago we are now making it generally

available. it will be the first in the industry to allow a one touch mobile buying experience. no credit card information, no userid and password. the first industry to do that across platform. that is a big part of when i came to braintree early on, a big heart of how i felt it was really needed it now been able to say today we can put that in the hands of million of paypal users is huge. it has the opportunity to really change the way people interact. >> i kind of gap when you're talking a year or two years ago there was an experience using some of your partners like uber or whatever, you don't have to think about reentering your credit card. what does that experience look like? >> we initially started doing this with creating a co-op across the different work.

now that we have access to the paypal network in 159 plus paypal users we have made it so it's an even cleaner experience where there is a fast switch to let you pay in a single touch. >> can we roll the video? ♪ ♪ ♪ >> yeah, so it is one of those things you look at it in a book's really slick and simple.

why hasn't always been this way and a mobile device? its years in the making because it's really really difficult. >> this'll work for all paypal users? >> as of today is generally available. anyone with a paypal mobile apple have access to this. very exciting news. like i said, have the opportunity to make us a couple years from now this will be the default way to buy on a mobile device. >> the other theater announced is your now allowing merchants to accept a coin. >> one of the things we've always done is given really easy access to payments under the premise of braintree from the beginning. that started with one touch payments mobile payments and one of the more interesting games in place now is sub six -- it is a protocol to address a

lot of that. today we are announcing paypal's first foray into bitcoin, where we have the quaint days and over the coming months will start allowing our merchants to access sub six. we started a couple months ago to accept it and being able to accept our corn-based partnerships. on the consumer side it will be part of where the corn-based will always be presented for consumers to pay in a highly adapted. >> furniture personal interest in bitcoin our? >> with and talk to nevada for a long time. in the very early days, paying close attention to it -- sort of

2009, 2010 really following it. the other question was when is the right time. these issues sought for regulatory compliance, the consumer experience because it's not really going to be a great consumer buying. all of those things need to be solved for. it would be feels like that right moment now where you can do this in a high-quality way. but we are still sort of with a lot of growth. >> what made it the right time now? maybe there's another large merchant. >> i think it is sort of the right sort of factor. the one being reputable providers for regulatory issues and a high quality consumer experience there is a wallet for these. also demand for merchants that are also interested in looking about the legacy payment, you

know, the last 30 plus years. all of the things on the other decades, this is now at the right time to really start to step further and step further into this and see how we can help propel it forward. >> so is braintree accepting bitcoin or is this paypal? >> it is not just a braintree move. the ceo of ebay has cities they are interested in bitcoin and watching her closely. as for paypal is our way to really embrace the bitcoin via the braintree platform. does this mean you're bigger partners like air bnp will start accepting -- start handling transactions on bitcoin? >> we will start enabling over the coming months, but we do expect gomera chance to be more how this came together and they

have instruments that we think that the one touch mobile payments we announced as well as bitcoin is high over the coming months. >> okay, great. thank you so much for appearing. >> excellent, thank you so much. ♪ >> all righty. how many of you have gadgets? from the sea of apple i think a lot. how many of you have a gadget right now? that if you are raising your hand. can you hear me? u.k. appeared in the u.k. in. chances are the stars involved in the creation of this gadget. it's hugely important to the ecosystem of hardware. these all come to the stage come out liam casey and john biggs.

>> can you hear me? nobody can hear anything. there we go. how many of you know who this is? raise your hand. nobody? how many of you on electronic products? just one or two. this guy probably handled most of them. he personally ships a lot of stuff. leanne i was told you're going to wear traditional irish dress which is why dressed like this. i feel very out of sorts. that said, you are the guy who does an amazing staff in hardware. and james follows in about 2007 went over to china, he did a fascinating article about what china make some the world takes. you are essentially one of the major figures in the article. you are mr. china. first off, what are you talking folks about pch international in general. >> at the company with product

development expertise that we take an idea for a product. we take you right from the concept right through to the consumer. that is product development the packaging knowledge is takes consumer on time and possible. we work with jordache companies and also hardware startups. startups is a really exciting space. >> back in 2000 you are called mr. china and that was when used to build millions of things. are you still mr. china? you think you are? >> for anyone in china for quite some time, you know quick way you know very little about china. i know as little now is the first day. it's such a big place and it's so complex. it's all about execution and

that is what we do. >> what has happened over the past decade, is used to go to china and used to build a million things. and build icons. now you can build one name. but it's happening that is allowing this change? >> i don't think it is a geographic thing. we track data of our products right through to the consumer sound and the retails were. we read waste inventory with data. it is not necessarily making things. we just want to make but there is real demand for and sometimes you don't want to make a million things. you just want to make what people will buy. so when you shrink the supply chain and some cases the bigger come in a set of a supply chain

to take a product from a production line in china to the consumer in the western world can take up to three. we can do it in six days. we've done that for some retailers, where we've taken the product, reengineered the supply chain and taken it from china to their retail stores and then we monitor on a vice basis so we can ship direct based on the demand. >> and so these guys are probably going to be thinking more entrepreneurial terms. what does it take to be a success in hardware right now? >> it is very interesting when we look when we look at the output can then apply we are looking for the same name that any incubator you look for a great team.

ap product is okay. it's all about the team. you have a great idea and a great product. you don't have a great team to deliver it. it's not going to happen. we look for great entrepreneurs. we have worked with phenomenal entrepreneurs and with our startups. >> recently about about how you guys partner with radioshack. it's been my parents in approximately since the time they gave up those battery cards. i believe i still have some. i love nine volts because you can put them on your talent and they hurt. but from my understanding, it was just sort of the records but items in storage for the customers you work with. you essentially changed the entire supply chain. >> i spent 10 years in the fashion business retail.

in retail there's different types of retail. destination retail and high-stakes retail. when you look at typical cell phone carrier store, that is a destination retailer. ..

the startup to actually put there inventory in the product in the product. we have once like center. three hours from the factories we work with. so we so we wanted a lean supply chain. and we did not want to be in the sectors erie it area you

can send an astronaut to the international space center in six hours, you don't need distribution centers around the world maybe we will open a 2nd one, but until until then we are not doing it. >> we went from radioshack operation centers that it how many days? >> when we look for the supply chain -- and we look for the supply chain and end-to-end supply chain. in some cases three months. we are now doing it six days a whole range of products not just our own. and that for them has released quite a lot of working capitol because it is instead of having it tied up in channels we are shipping. >> i remember you used to work in fashion. for ten years you did fashion before this. not very similar.

>> it's interesting. the convergence of fashion and technology it's an interesting space. especially for companies. connected. so again at the end of the day. >> let's talk a little bit about highway one. you guys just started. you making money hand over fist companies that manage to begin with anl. why did you do something? >> extremely challenging. the pace of hardware innovation is slow because you have technology roadmaps

product roadmaps. that can really slow down from bringing an idea ready for the consumer. and we find that working with this generation the great software and entrepreneurs that actually venture into the hardware space and want to bring a peace of hardware to market command we find that in the space inexperience is a phenomenal elevator because they will ask us why not. why can't you do it. why can't i take it direct from the production line to a consumer anywhere in the world? traditional companies wouldn't ask that question. too much experience. so they are much more conservative. we like the whole disruption that comes with the incubator space. the way the entrepreneurs think fantastic can-do

attitude. and they're whole approach to bringing a product to market is very lean and one that actually, i think that if any company today is a mature company for me this is probably one of the most dynamic things we have done with the company because it forces us to be able to react to the startups and to be able when they say why can't we do it we have to think hard. and they ask us questions that traditional companies more mature companies wouldn't. >> if these guys the big guys, the old guys, they seem exhausted. sony samsung still hanging in their and all that other good stuff, what is the future for those guys? making 500,000, a million units. what is the way forward? >> it's about being nimble so important. when you look at -- we

talked about being on the high-end where we are focused now our engineering and product development. we have a retail distribution relationships we actually sell product. down at the bottom of the curve we have been focused. for me we enable backups to take a product from a production line to a consumer with the same service as a big company without having the burden on the overhead to have to do it. to me it is one of the great enablers for hardware. >> tell me about some of the highway one guys boys we actually featured. >> ridden by the company. out of london, and new york fantastic entrepreneur. it came to our access program the labor stage, as

did little bits in new york. again, the great entrepreneur. great entrepreneurs for products and they actually take the product where they come up with the idea. idea. we love to focus on companies that understand design and that really invest in design, the kind of companies we work with her companies that are passionate about design passionate about their brand and passionate about the consumer experience. we manage that entire process so that we can deliver a great experience end-to-end. how we do it down the orders of one so anywhere in the world we can monitor a product and manage the experience. we do it. they were very focused on design. she was very focused on making sure they had a a phenomenal design and a great experience.

>> what other cool stuff to do good to see? >> again, this week we are shipping products shipping in the next couple of weeks. >> do you go out and ride the range? this he ride the range? i don't think he does. >> we have got the one launching today. it's for helping if your parents are living alone and you want to help them to extend there time in there own home with a don't have to go this is one of the best products that we have seen for monitoring that whole home remotely and for families to feel comfortable that they can you know, stay, stay connected to the parents. that's a great one. just watched one today connected to the hub and to

the family, which is great. >> fall down and press a button. >> it's one that you would where. >> the one that i saw. >> the george foreman grill. intelligence far beyond. >> i was from last time. another very good one. connected as far as to an ipad. >> what do you like better? big companies were working with these guys? >> i love the energy that comes from the entrepreneurs. to me that is what is fueling innovation and getting the attention of all the big companies, you mentioned the big companies. they are really attracted to these startups that we work with and i just sometimes very angry at the process we take them through. >> and you are absolutely certain you are not being

paid by the big companies to destroy the small companies in there infancy. not all whatever. your holding something hostage, you can let us no. >> we are champions of innovation. >> are your helping everybody. i have a couple asked questions. if you look under your chairs they're are apple iphone sexes is what i wanted to say. liam do some work for these guys. we discussed specifically about the iphone six. you have one in your pocket right now. your going to give me one. >> yeah, yeah, right. >> a couple more rapidfire questions. the i watch and how does it feel to hang out with well i am a lot? >> the hardware fanatic. as the good thing. >> bono and these big guys, neil young, getting in the hardware.

>> i think that they're is a huge interest in hardware. when i was in the fashion industry it's interesting. i would go small roles of fabric. and you could make any garment you wanted from that role of fabric. that was so far from what you could do. he had to wait months and years. what we saw in 2,008 was great. prototype. notice that they had the tools for the fabrics.

phenomenal and use by a lot of companies. you have 3 d printing and android. now you have the fabric to actually prototype. in prototyping generate amount of energy and today when you sketch a peace of hardware and a short time you hand somebody a prototype and it's far more convincing. >> thank you very much. give this guy a round of applause.

♪ >> watching other people play video games almost a billion dollars. but these guys have done it. the founders and our moderator, kyle russell. ♪ >> thank you for joining us. the last couple months so it

seems like for a while so why choose amazon as a partner for growth? >> you see that written down amazon was a really great fit for us for a couple of reasons. we went down and pittston what they thought their future was the meeting of the minds on where we thought gaming was going and how we saw the future of the gaming industry. we really have the same vision and we had a shared vision. we were going to be -- it was assumed we will be powerful. amazon has a great track record. i mean even look at imdb.

the founder still running it, philip strong. son to have that level. >> if you look at the history of gaming any go back to the very beginning we had is very social atmosphere. waiting are watching someone else play video games. so as you look at where video games have gone over time there gone from video games, social shared audience interactive something that you play at home. what you have seen as a reemergence millions of times bigger the online.

imputed as the next phase of gaming where single player multiplayer. you really see it as the knew mode. live streaming and amazon almost sees the future. the future of video games are becoming increasingly networked and increasingly social. that was the future. so fun fact, the 1st story was how google can avoid burning twitch. the issues that that gamers had at the time on user the content id system they display some of their own music, can of like a dj. and they were worried that

would ruin the appeal for they're audience there fan base. you know multibillion-dollar media center it seems like it's going to be a big target for you guys letting people distribute copyrighted material. how are you guys going to deal with that going forward? >> the situation for video from any time you let viewers upload video you have to think about the your situation. we are in a fortunate position because we have a very specific set of content we encourage and can limit that and stick with just gaming content and are fortunate enough to work with gaming companies that are excited to have people stream and share there games because they have a functional business model that supports, it's

surprisingly has not been a problem because you have general-purpose video platforms it comes up a lot. when you run something more specialized we focus on a specific set of content you can really secure those rights in a more positive way for users. >> you do have them in place for monitoring whether people are using copyrights. >> we recently launched an audio recognition system to identify. but it but it actually impacts less than 20 percent of our videos. >> you have a lot of people streaming. when you say 20 percent where is that impacting. >> obviously it's not evenly distributed. you can have 20 percent of

the stream but it's not like one specific set of users. >> we only running against video-on-demand stuff for a variety of reasons. >> audi menace people's expectations? we have to deal with copyrighted material work. >> everyone on the internet recognizes that music licensing is a real thing. >> the other big thing they would be forced to use google plus. that is clearly not a problem now, but i be spoken about how you we will integrate gaming?

>> we are excited about the potential ways we can work with amazon. there are a lot of obvious places where they're is energy between the two places. her attitude is not this transaction happened before we have to do xy and z immigration. now we have the opportunity. can we use awi? now we can put our music licensing team in touch with theirs and see if we can secure. we have these opportunities that see if they make sense for both companies are not. >> those kind of immigrations, people like they don't see they improve the experience overall. some people are concerned that people go online already. i already. are you guys going to keep going with that idea and become a native advertising platform? this game is great for pc

and i decide to buy it. there's a button right there >> i would say we already are. we already are the place you go on the internet. our entire website in some sense as is a native advertising unit for video games. yeah. we already already drive decisions. the partners already use amazon affiliate along with a variety of other places that you can buy video games, game stop etc. and they already so video games to their channels. it is something where our partners have come to us and said, can you help me sell video games more. i do think what we are doing a lot more to aid our partners on they want to do that but they're is a big difference between that and becoming a storefront for amazon. i think what they see the real value we bring it is an awesome community of people who love to video game videogame and gather to

celebrate and share that experience. if you change that into a storefront you destroy a lot of what is great, and i think that's the last thing -- i know is the last thing i want. >> at the same time lobby watching a stream and go on amazon later and it will say you might be interested in this. >> we have not actually discussed any kind of data sharing like that. who knows what the future brings. it's not -- it's not exciting in the use case. is this something that our users want, something that we will create a good experience for users? if the answer is know it's just not that exciting. what exciting. what might be a good experience is, hey, i'm watching this game. by the way you can buy this right now with a 20% discount. that seems like something our broadcasters would want to offer and our viewers would probably like. we aren't going to force try force, try to force synergy, data, while you're on the internet stuff.

>> buying the company for a billion dollars, it seems like amazon expects you to get bigger. where we will that growth come from? >> one of the most important things, today we have grown a lot expect to see a lot of growth and mobile as well. encouraging growth as broadcasting from mobile platforms becomes more possible. >> for me it does not seem like broadcasting from mobile means seems that created.

>> as i was for a while it was too addictive. i was really interested in how i could build my empire better and how i could make the best army i could make. and they're are people from the top sharing strategies, strategies, sharing the best way to broadcast,, you no, to play clash and is super popular. just just like playing any strategy game. is not going to work for every game. you put your phone and your forehead that's probably not going to translate very well but others translate really well and what we are seeing is an evolution of games toward more and more rich, powerful experiences. don't give more powerful and i think you we will see as a result of that more and more mobile games on twitch.

>> another big platforming gaming. >> audi you feel about virtual reality? >> is really simple. anywhere that you play video games and have a video game experience, we want to enable you to share that. there is obviously technical barriers but what we have seen is the players heads up is actually rarely the best of you for watching the game it sometimes is but you would not watch football from go pro strap to the head of an nfl quarterback. it might be interesting for a little a little bit but it's much more interesting to have a top-down view. maybe they're will be high penetration and you might

drop yourself and the world and watch, but it's likely that watching of the a vr game you will get that top-down view we are very excited. we think that like tablet gaming it offers a huge area for gaming as well. >> right. so the thing i am thinking is the conflict that we have out today are struggling with getting 60 frames per 2nd. so dealing with broadcasting and twitch stream means we have to deal with that. are those systems ready to accommodate? an outside perspective? >> is not even out yet. the knew generation console worked very well for that kind of stuff. they have true true multitasking built-in. they can walk and chew gum at the same time playing a game and rendering and streaming.

so i don't think there's a a problem they're actually. the next generation councils are really prepared for streaming. >> well, with that said i guess going back to vr and making the experience for that, you talked about rendering separately also. is that something where you have to reach out to developers who are making things that work well or might be a good experience broadcast and there like let's integrate our technology and find ways to provide unique experiences. >> definitely. one is the viewing experience where you can sort of enhance the current social experience where it really is -- it does feel like your watching with other people. you you can imagine more of an auditorium style viewing experience versus where they go down the road it's not going to be the best viewing

experience. imagine being able to go into a game that moved independently and move around the game of your own volition and create your own gaming experience, i think that will be what is really fascinating. couple that with the phenomenon where the audience can influence and interact and that we will create cool experiences that don't currently exist today. we are excited about it, but the advancements we will come fast. >> the thing about fighting in game experiences, spectating the a vr it seems like the experience is best delivered natively. download the game, a lighter version, spectator only.

you know, how do you get developers to be on board with making twitch a part of that experience and not trying to own it themselves. >> it's a good example of this. you can watch as a spectator but what we felt is something that is largely on top of that to my more social experience, it reaches a broader broader audience and if you think about it part of the value is being able to reach the people who don't play your game in developing futures developing better features like in game item drops really encouraging people to watch content in addition to playing the content and closing the loop is what game companies want to do with us. >> the other thing that is missing when you have in game like spectator mode experiences which are really cool is you don't have chat you can do it from a web browser, you certainly can't watch on your iphone or android, stream it to your

xbox or playstation and you really have to be on the same platform and we will we see increasingly is comes from everywhere, not just from one platform. it comes from all of them. and so we think the spectator modes are coming and we actually have found that they, when those get released they grow the audience because they become an entry. but then when you want the chat mode interactivity, one access to asking questions over the broadcast and interacting with them you come to twitch because we provide that experience the best. that is what we try to focus on providing that value. >> speaking of chat and the community and that is such a huge part people find someone that streams games and gives them an honest opinion and get into that personality and follow them. they're are some people who stream