this morning, big names in high tech pour their money into coffee. we'll talk to blue bottle founder james freeman, anna net true and the search is on for silicon valley's top enpreprenewer. martin giles of the economic this week on "press here". >> good morning, my first guest would tell you whatever coffee you are sipping this morning is not as good as his coffee. he serves each and every day at blue bottle coffee, so fine and carefully crafted, some would say so fusscy, it's drawn all kinds of attention and money from some of san francisco's most rich and powerful.

recently a who's who list of tech entrepreneurs poured their money into blue bottle, including founders of twitter and instagram. to think blue bottle's founder james freeman didn't go to business school. his talent is playing the clarinet. what are you going to do with all that money? >> we're going to build shops. >> how many shops? >> i don't know. we're going to build some r and d facilities and goal is to be better, not just to be bigger. all of our investors are very happy to contribute towards that goal. >> you've anticipated one of my biggest questions, do you take any quality brand, i think you can only get so big before you can't get better. >> i think that might be true. but so the question is how big

is that? you know, embedded in all of those questions is when are you going to start to suck, james. >> that's a much better way -- >> what are you going to start to suck, james. >> maybe never, i'm going to try to make it never. i get asked, how are you going to maintain quality. this word maintain. i thought about it and it's really -- there's no maintain. the moment you start trying to like grab on to something, it's gone. it's vanished already. we have to build quality every year the coffee has to be better and hospitality has to be better. so that's my task and that's what our investors are excited about having me try to do is to get better, not to stay the same or get worse. >> one thing i liked about the latest venture capital round, as scott mentioned a lot of technology investors participated. i like how tony conrad of true

ventures told tech crunch, listen, i could lie and pretend like this has a tech angle but it really doesn't. it's just coffee. >> why are so many technology people and people who traditional invest in technology companies so excited about blue bottle? >> i think about that a lot. i'm not sure i have some leading theories. one is that -- actually a friend of mine who has been in tech for a long time said people in tech in their form tif years they are up coding and everything and bond with coffee early on. so there's a tremendous sort of kinship that coffee is basically fueling their careers or had got them started. that's one kind of plausible scenario. another plausible scenario in coffee, one of our battles is to tell people who made coffee the same way for 20 years, that maybe they could stand a little improvement. and that's hard. that's a tough hospitality issue for us and something we try very

hard to be good at and gracious at. with tech, there's sort of like hacker mentality and that's this idea that anything can be improved, like no tmatter what t is, tim ferris has made a career on that premise. >> anything can be hacked as you said. >> what this place loves to do and the walls of silicon valley love to finance is people who disrupt. aren't they looking to you to take on the formula starbucks and we want something different, is that the game here? are they saying james go on and take these guys on head to head? >> it's not about competition. it is about seeing an opportunity, i think. there's a sense that certain large coffee companies are occupying the middle ground instead of a higher groundanymore. enthe higher ground looking at what's happened with the amount of income slowing towards the

top of society, the higher ground i think to a lot of people is what's interesting and profitable now. so there's this investment in -- not the modification of luxury but bringing out luxurious thing that cost $5 that makes people happy to more people. >> there's a niche as america gets richer -- >> america is not getting richer. >> areas of san francisco get richer, that maybe the niche is the let's market to the people who can afford it? >> exactly. the happy thing for my industry is a lot of people can afford -- you've come in with $3 and send you out with a delicious highly crafted impeccable beverage. >> back to scale, that's going to be one of the problems. if it takes you longer to make the cup of coffee, you can only serve so many people before i'm standing in the back going, i wonder how starbucks' line is?

>> there's three words that i thought of in lieu of a mission statement when he was pressed for it a few years back. deliciousness, hospitality and sustainability, those three words, that's all we have to do really. >> speed is not involved in that? >> speed is a hospitality issue. >> good point. >> people waiting in line for a long time, we're not being as hospitalable to them, thank you very much -- you're the professional. but however, sorry to interrupt, but people don't want hospitality to win over deliciousness and that has to come first. if they know they get an impeccable product they are willing to wait as long as the theatrics of bar are such that they can see people are working hard to get them a beverage given the string ent standards we have. >> i've seen the logo on various independent coffee shops. are you trying to support a load of entremendopreneuentrepreneur?

>> we have higher end coffee companies now because primary in those businesses, maybe 75% is in wholesale. that's about the reverse for us on almost 75% is in our retail shops. i think regardless of the success of many of our wholesale accounts, nobody is going to love your coffee more than you do. i like making our own world and creating our own world and have our people making our coffee. >> when you take money from investors they want to see a return on that investment. i'm sure you've heard of this. >> i've heard of that. read it on the internet. >> if they mentioned this in music school. >> not in music school. >> at some point that means there's an exit usually. are we going to see a blue bottle ipo or will they ever sellout to starbucks? >> i don't think so. why would starbucks want from us? we could teach starbucks how to make less money per square foot,

how to make fewer drinks per hour. i don't see us having a lot to offer and back to the ipo, that's like -- we're not that big of a company. so i -- that's a lot of paperwork personally that i don't want to take on. i don't see either of those things. >> let me ask you about, what's an analog company? and something i've heard of, not some store in a particular neighborhood, that you would say is similar to blue bottle coffee? who does it right and who does it blue bottle style? >> i have heroes, that's for sure in a lot of different sectors, hard not to admire the pristine efficiency and the welcoming of the apple store or like just walking into a virgin airplane and all of a sudden you don't feel depressed. that's kind of magic. >> unabashed fan of virgin. it comes up in every show we do. huge fan of it. >> how hard is it to have a

plane that doesn't like embody the physical attributes of clinical depression and people are nice to you? >> be nice to people. >> exactly. those are two big companies that i really admire, shape shack is another one. >> james freeman, thanks you for being with us this morning. we enjoy your coffee. >> thank you very much. up next, net neutrality from a woman who can actually do something about it. an anna esh shoe.

welcome back, last weekend the internet groened under millions watching house of cards on netflix. it is one of the most popular things on the internet. the nerve center of netflix as they make sure all videos are getting through to homes over internet lines. the huge amount of data that netflix pours on the internet does not escape the notice of internet providers. why should we let third parties like netflix use up so much of our band width? the flip side, are we going to let isps decide what is allowed over the networks.

congresswoman writes laws to protect it. she is a democrat, ranking member of the house subcommittee on communications and technology. thanks for being with us this morning. >> thanks for being with you. >> let's talk about net neutrality in an upper level where we don't get too technical. the fcc was told by the courts, you don't have the authorities the way the rules are written to govern net neutrality and what happened since? bring us up to speed. >> earlier this week, excuse me, the d.c. circuit court came out with their long awaited decision on the whole issue of whether the fcc does have the authority in the area of broadband. and they brought forward a decision that, a, upheld that the fcc does have authority. so that's a win. it was verizon that brought the

case. challenging the fcc having any authority over broadband. >> having some authority? >> they do have authority in broadband. what the court also did was to strike down two sections relative to broadband and net neutrality. the nondiscrimination clause and the blocking clause. but very interestingly, what the court did, they stated -- they went on to state, i should say, that they gave the fcc a road map of actually how to structure -- to draw the legal thread through this or needle the thread legally in order to be approved by the court. so earlier this week, the fcc chairman came out with how he plans to do that through the commission. and i think it will put the consumer back in the driver's seat. >> does that mean congress

doesn't have to get involved? >> i think that congress will certainly speak out about what they think the fcc and what chairman wheeler has plans to do. very importantly, he wants to enhance a transparency for consumers. so that isps can either slow down or block content and then on the blocking and the anti-discrimination, he will come up with rules of the road in the proper way that the court actually gave him a road map for. he's not appealing the decision very importantly. and he also wants to enhance competition for municipality built networks as well which is really very, very important across the country. >> trying to get to the -- >> i support what the chairman has come out with. >> this -- one of the rules basically you can't discriminate between content that comes

across a broadband service. but what happens let's say i'm a massive gamer and love to play halo and want a really fast halo service and someone says here, you can pay x more dollars to have your halo service. why shouldn't i be able to have that? >> i think we have to pull back and examine why the internet free and open, accessible internet has succeeded the way it has. it has really transformed the world and certainly transformed our country and how we work and learn. and it touches on everything. we certainly have a lot more work to do because today it's no more -- we don't talk about accessibility as much about the need for speed. but i think if we create these lanes or just opportunities for people that have money that they can have speed and the rest of

us are stuck on the bridge the way the new jerseyians -- >> your analogy about lanes to speed, there are hov lanes in which i can pay -- literal car lanes, we're not being figurative anymore. >> you can but there are real rules for that. you can't be a single driver and do that. >> i can pay for being a single driver, can i not? >> we're getting into -- analogy may have gotten -- >> the one reason the internet has been so successful, generally governments have kept their hand off of it. there's an argument that says the moment you start putting rules in place you fossilize the setup and suits the incumbent and not people trying to get in. >> i see it as the opposite. i think that the internet is something that everyone wants to use, does use, in -- just put a

multiplier in it. we know all the ways that it is. in fact, if the consumer isn't in the driver's seat, then it's going to change the internet. i don't know anyone that would raise their hand and say i'm for blocking and i'm for discriminatory practices. so this is kind of an old saw government keep your hands out of it. were it not for the investment that the federal government made, aa long time ago there wouldn't be an an internet, the basic operating principles of free open, accessible, need to be retained. and i don't think an isp and i don't think a wireless service should be able to discriminate or block content and we haven't gotten to wireless yet. but i just think it needs to be kept free, open, accessible.

we need to increase speed and i think the consumers for companies, for the private sector need to be in the driver's seat and the private sector will do even better. >> can't stop nodding. >> i wanted to zoom back a little bit and ask, you're coming to the table here in congress from silicon valley, you talk all the time here to technology, executives and had a career in communications and understand these problems but historically we've seen some people in congress that don't seem to really understand technology -- the technology that they are really making the laws about here. how has the level of discourse changed since you've seen it? the past couple of years? >> i think what has happened is that there's been an individual transformation. because they -- members have families and they see what their children use. they want those tools for their

learning but they are also using them themselves. walking to the capitol, i don't know how many times a day for votes, it's heads down, examining their iphones. so there's a personal transformation. and with that transformation, comes a better understanding. now do i think most members of congress can write code? no, we're not engineers. there may be some engineers in the congress, but i would say that's what has changed it. and there are more and more members that travel to this region to my congressional district to learn. >> i can see how congress using the devices that make our -- finally return. i want to ask you two quick questions in the time we have left. let me throw out the easy one. that is, do congress people watch house of cards. >> i believe they do. >> do you watch it? >> i have, it's fabulous.

>> great. i wanted to -- i've been curious about that. second is, the house actually has an app, speaking of congress people using iphones, an app competition for young people. >> i wonder about that, if they sell it, they can get what it is $19 billion, i wonder if they can get from the house of representatives -- >> this is about a challenge to high school students. >> tell me about it real quick. >> there are two members, myself and republican from virginia, who have watched the effort. it's a national competition, high school students inviting them to compete by bringing forward their ideas, building an app for mobile, for laptops for computers and designing their own platforms. >> and more information on the web. >> all to advance science, technology and engineering -- >> this is the amount of time i

can get the gentlewoman from the state of california. thank you. >> wonderful to be with you. thanks. >> we'll be back in just a minute.

welcome back. once a year business people in the bay area gather for what i would consider to be the oscars of the business world. the entrepreneur of the year awards past winners, nick woodman, the creator of the go pro camera as well, reed hoffman and jeff weiner of linkedin. it's hosted by an incredibly han handsome emcee. you sometimes give awards to people that are up and comers, never heard of them and other

times it is somebody who has been established and reed hoffman is agood example. i'm fascinated that a guy that made a billion dollars off paypal wants to win april crystal award and so excited -- i mean, he could buy as many crystal awards as he wanted, right? >> absolutely. when you look at this award, it is the premier entrepreneur award to win. >> i agree with you. >> you look at the core of entrepreneurs, they are absolutely competitive. they want to win in everything they do. and you look at the crystal and say, yes, the crystal isn't worth much -- >> it's lovely, probably worth 90 bucks or something. >> they are absolutely competent tif. for many in the competition, the companies range from small to very large. some of them are looking to brand themselves and some of the companies are looking to build out their teams and people are looking for the network opportunities and on a global

scale provides opportunity for companies to do. >> what are they judged in? how do you evaluate the entrepreneur of the year? >> the judging takes place, we take a whole group of ceo types, past award winners and independent of the firm. they are looking for high growth companies, where they start at. but they actually evaluate them based on their entrepreneurial spirit and how the financial of the company are and what the impact on the community is. they are actually interviewed and scored. they actually have to compete. they just don't show up and get a prize. >> being sold on facebook for $19 billion. did they get an award? >> they are not part -- they have not been part of the process. first off they have to be nominated in the process. clearly i would like to be on their friends and family list right now. >> me too. >> but they have to apply to be part of the program.

>> and anybody can be nominated, right? >> nominations come from anybody and everywhere. >> i could nominate -- my own company or myself. >> absolutely. >> most of them come from self-nomination. >> in northern california region, if you win northern california as linkedin did, you go into international. >> absolutely. >> majority of them come out of tech but i learned about the method soap, there's one called protransport, an ambulance company. jessica her ron has been on the show because of that award. there are lots of businesses in the silicon valley that has nothing to do with silicon. >> we tend to focus on technology in the valley. eight categories, real estate, you look at consumer products and go pro has involved in there and when you look at the valley, it's a lot broader than

technology. the category reward recipients half are from technology. as you pointed out, scott, if you win at the regional level, which is here, you compete against 25 other regions across the united states at the national program in palm springs. ten category award winners are picked there and nick was also one of them. and pro lodge's leader as well. and if they win one of those ten category winners one is picked to be the u.s. representative who competes against the winners of almost 60 other countries where this competition is held in mondayco. >> the emcee is the national competition -- >> there's an opening here because he's retiring. >> he has absolutely retired from "the tonight show" but he still wants to continue to be part of our program. >> fair enough. >> i wish you the best of luck with your awards.

and they truly are the oscars and so well done. >> we certainly appreciate it. get those nominations in by march 14th. >> thank you. we'll be back in just a minute.

that's our show for this week. thank you for making ugs part of your sunday morning.

welcome to comunidad del valle. more help for college students and those in high school who want to go to college. this is your "comunidad del valle." ♪ >> we begin with the program put on by the new life chapter. here with me are two students benefitting from this great program. eddie cruz and caitlin fernandez, both students in holster and here to talk about the program. tell us about