part by barracuda network, cloud connected security and storage solution that simplify i.t. >> a san francisco entrepreneur tries to outflank the banking industry. plus a warning about apps that may be more dangerous than you think. and inspiring girls to code. our reporters, the financial times hannah kuchlor, this week on press here. good morning, i'm scott mcgrew, this is sald dressing, i bring it up not because we have a new sponsor, wouldn't it be

spring? but because it's a great example of a new way to invest, wafu is a rapidly expanding canadian company, a startup. you could buy a be thele, but ls you can click to invest. if you think the salad days are ahead for wafu, they are taking on and accredited investors. the money is handled bay middle man, the san francisco company itself is startup works with all kinds of consumer products helping them raise funds. ryan callbeck is the circle up founder and ceo among the companies he's helped, little duck organics, totally bananas, and bobby sue's nets, joined by quinnton hardy of the new york times, i have to tell you right away, i've noticed a great number of the companies that are working with you are food. small, organic, sort of food. is there a reason for that that food companies are particularly attracted to this method of raising money? >> it's about 40% of what we do. we just focus on consumer and

retail companies. that's all we do. and food is about 40% -- >> why? >> it's because, we think it's a great place for investors to invest. we think the technology world there's overfunding, we think there's a bubble, but more broadly, we don't think great technology companies struggle to make money. >> technology company goes to venture capitalists, very small businesses fund themselves out of their own pockets using their visa card oftentimes. when they're banks as well, there's a middle zone there, is that where you're targeting? >> we're targeting companies with typically between one and ten million in revenue. believe it or not, there's a million companies in the u.s. that fit that criteria. and consumer retail with one in ten million in revenue. historically, the returns to verss in that size range have been very strong. accord the kaufman size range, the average investor makes about three-and-a-half times their money in four and a half years.

>> three and a half times their money, what's the failure rate? >> it's about 40%, it's less than tech. one of the reasons they're stronger than technology companies is because the failure rate is lower. another reason they're stronger is because it takes less money to help those companies sktd. >> who are your investors? normal people with normal portfolios, do you understand who your investors are doing this? >> we definitely understand. >> are they sophisticated people? that's a legal term, right. you have to have what a $200,000 income, remind me what that is. those of us who are -- >> credit investor is an individual that makes $200,000 a year or a company that make 3s $00,000 or a million dollars in assets. >> okay, somebody who can lose the money basically is a good sort of summary. >> that's the way the fcc thinks about it. >> am i right in thinking that you work with larger consumer goods companies, and why do they need someone like you to make a

company with a salad dressing company. >> we have formal partnerships with virgin america, a number of others, they're interested in the innovation. consumer retail is a very inefficient market, unlike tech where there's a lot of information to find the right companies, the most innovative companies. consumer retail it's hard for those large companies to identify the most innovative smaller brands. >> purchase targets. you know, what was it bobby sue's nets, that the diamond might be interested in buying bobby sue's nuts at some point, general mills might be, et cetera. >> they're interested in acquiring innovations for a number of different ways. to give you an example though, last year, the m and a market in consumer and retame was twice the size as it is in tech. that's how large our consumer retail companies grow. >> actually get the product they want is they tend to buy it. >> if you look at the last ten years, you look at nestly or

coke, they've started on one hand. they don't start brands, they buy brand. that's a great thing for the investors on circle up, you're investing into the brands before their professionalismed by -- >> what are the downside risks. >> first of all, it's a high ring class. i mean private investing is high risk, you have to have a failure rate earlier, it's high. to accommodate for that, people don't have to be okay with the long-term hold. typically these companies have take, as i mentioned before, four and a half years to earn a payback, many can't afford to wait that long. eat key consideration is the diversification is absolutely critical. if you only invest in one or two companies, i don't care how smart you are, it's going to be hard to be successful. the most successful angels typically invest in at least ten to 11 companies. >> there's not an easy exit. >> this is not a hey let's resale this thing to google and get out exit. this is a slow growth salad dressing. >> no, i disagree strongly. i disagree strongly. what i was saying before, the m and a market was twice the size.

>> we were going to be bought out by -- >> you're twice as likely to have it happen. >> that's fantastic, the stock markets like almost in bare territory now and that could all go away. bear in mind, even four year return might stretch if things decelerate. more interesting to me is how much disclosure do you insist on from these companies? doctor are they audited, do you trust the numbers? how do you have any way of knowing that what what they're telling you is true? >> we do checks on the companies themselves. in the terms of the information they provide to investors that'll include the financials, historical, and going forward. >> are those audited? >> never. typically a small business -- >> thank you for being clear. >> typically, entrepreneur at that stage is not auditing their books. >> yeah. >> what we do do is check the numbers against third party data bases. people don't know this, the salad dressing is held up earlier, you can actually look to identify through a third

party the sales of that company last year. and compare it versus the competition, we get that data to verify some of the members like revenue, and we get it to investors so they can do the same thing. >> anecdotal, strong. >> can you give us an example of what innovation means. we're quite used to new technologies, but is it like a new flavor and some of the stuff on your site seems to be maybe got the potential to where the bay area where people like to feed their dogs gluten-free treats. but does it really have much potential elsewhere? >> i'll give you an example, trivanai started. it's a $5 billion company. >> the greek yogurt company. >> yeah. >> which completely changed the market here in the u.s. it's now a $5 billion company and yoplait is trying to keep up. that's innovation that people here in the valley would thumb their nose at. $5 billion later.

>> let's pretend one of the companies and i can go to the bank and i can get a loan, or i can have these private investors. i'm giving away the private investors, right? i have to pay the bank back. . that's all i have to do. >> why do i give away part of the company? >> it goes back to your earlier point about these if these companies are slow growing, they're not. >> it is growing over 100% a year. when you're growing 100% a year, it's hard to use depths. in the computer space, if you're growing that quickly, tomorrow you're going to get an order from costco or whole foods and you need to buy that inventory in advance to get paid for it. it's hard to have debt and pay down the debt. the math doesn't work. >> something else, how do you make money? >> we make money in a couple of different ways. >> we typically charge about 5%, the number goes down based on the size of the raise. two, we have fees, our partner rs pay us fees to talk to the companies that come out of

circle up. and those are the two primary ways. it allows them to invest directly into the company. >> what company do you wish was invest? i don't mean a specific company, what do you think is right. as we pointed out, we've seen the dog food and the salad dressing, champagne and things like that. what industry do you think would be benefit woel from this sort of model? obviously not tech. >> no, definitely not tech. i think it'd be a disaster in the tech world. >> tech's got enough money. what industry, if i'm sitting at home and i'm in the x industry, what industry would you like to see more of this being taken advantage of? the jobs act, and the sort of -- >> i can give a framework, we know consumer retail very well. that's all i've ever done in my career is invest. i know that world. but i can tell you the framework that i think leads it to be successful, so folks at home can consider that framework. one, i think historically shown strong returns. if the industry hasn't shown

strong returns, i struggle to believe that investors can be successful in an online site. the two understandable businesses. that's critical. this site, you're looking at businesses that typically have more than $1 million in revenue, and you can find in the local star stores. >> and you understand that concept. >> here in silicon valley you cannens understand the company. we think that's critical. >> i have hold it there, but thank you for being there. we wish you the best of luck this morning. >> up next, dangerous software that spies and gives away company secrets, there's an app for that when "press:here". continues.

welcome back to "press:here" you think an app called whisper might keep your secrets, but the guardian says it's not anonymous. the latest disaster involving apps. let's not forget the so-called snappening, where snap chaz users using a third person app who expose these pictures to the rest of the world. hundreds of thousands of pictures out there. in secure apps are making smart phone users insecure and absolutely freaking out corporate america which knows employees are out there downloading all kind of trouble to their corporate phones. this is the founder of app authority, a mechanical engineer

by trade, he holds pattens including a risk assembly for a robot. we've asked him to name names. i want to start with the one i was most astounded by, it's a flashlight app. by ihandy, it can access according to your researchers, my calendar. >> yeah. >> why is my flashlight app accessing my calendar? >> because the app and as users we granted that access. there's no functional reason why an application, like a camera, sorry, like a flashlight -- >> and the camera too. but my calendar, camera -- >> calendars, locations, and really we've seen the developers are trying to monotize. so they're harvesting all the information they can and trying to place it with data brokers, ad network, sometimes for that i know own internal research. we might need that in the future, let's collect it. >> you can't speak for this company, you can only tell what the data shows you. you think it is an intentional

thing. you don't think they accidentally do it, rather they are selling it to somebody. >> they have to write software that looks around for stuff and pulls it out. >> it was free,ly give you that. -- i will give you that. >> and it's possible, right. >> and it's something we see, it's part of the insensitive from the developers, they want to monotize that they also want to give the app for free and get more users. that find that ad networks and sharing data is a way to monotize that -- >> do you have any sense of the scale of this problem? >> absolutely. it's something that affects most of the apps out there today. we did a study, we looked at the top 400 ios and android apps, both free and paid. on ios and android free, they had something to be queasy about. >> and then paid apps, it was a little bit better. >> what do you mean?

>> they would have never allowed this when they're purchasing apps, they can track your location, your phone book were -- >> why does that warrant a business? what kind of information could they lose or who could be spying upon themselves? >> think about about it, employers are using them for work. used to be checking their e-mail, but now opening presentations, they have confidential information, their calendars, you'll have meeting minutes, attachings, calls numbers -- >> something not do get in the hands of rivals. >> working home are blending into each other anyway. you're taking calls at the dinler table and you're planning the soccer schedule at work. they're being used simultaneously and bleeds into the organization really quickly. >> and beyond that too, it becomes a family device, not just a personal device. no one would share their desk top with their kids. but at home, you give your ipods to the kids, now the game

sitting next to corporate data comes into the office, trying to -- >> even if they don't do it intentionally, in the case, there was a tube map that showed me, it's not necessarily harvesting my data per se, but whatever data it is using for maybe legitimate reasons, it's sending back to the developer totally in the clear. >> absolutely. we founded that -- >> i'm okay with that. >> the balance of the oyster cards. >> i'm okay with that. >> but texts, it's open for anyone. anyone that's missing that pact or that network can know your wlans, account number, first name, last name, birth date. >> yeah. >> where you're going, where you've been. >> what stations in london, they can triangle what companies you were visiting. >> now pam, the app business, it's five or six years old, you're sort of positiving that it's turning into this ethical

sewer. all companies are doing that this. >> there's different than the traditional software space. it used to be very long. software came from companies like oracle, microsoft, now from the top 100 apple apps, it's fragmented, it's low, anyone -- >> 82 developers, all of whom think, you know, i need to steal his calendar data. >> how can i build them the fastest, so there's mistakes. cheapest, not third party tools -- >> this is intentional. >> app stores, you have two big app stores, why are they not doing anything about it so they don't appear for us to download? >> great question, what google and apple is struggling with, what's safe enough for consumers? well, it might be safe enough for someone to use at home, but it's not safe -- >> and they have every right of that, but the excellent one, isn't there something maybe the way we do television and movies,

and that is this app will access your calendar, green check mark, yes, it will, in other words, you know, kind of the sex reason violence, bad words sort of thing, this is what this app will or won't do. not where i have to look through, just some sort of rated system. >> we're starting to see that more and more. there's pressure from the government from both app apple and google. the problem with just what it is, it doesn't tell you why and what they're going to do with it. and i think we're going to get to what it accesses first, you'll see see the flashlight app accesses my calendar. most say okay, they don't know. it's going to be data mind or that is going to be data mind and folks will get marketed too because you shared that. that's what's missing. >> there is that idiotic point, i struggle with snapchat, a third party app to defeat whatever the first app was trying to do as well.

that must have frustrated you. >> it's frustrating with, but it's scary, as a user, you might think that the technology's protecting you. the technology is as secure as the users on the other end. it has an app that promises something, also on the use users, what are they doing with that data now that it's easy to store the data? >> what a good business would be if you write a blocker app that send it to a fake calendar and fake address book. >> you work on that. thank you for being with us this morning. "press:here" will be back in just a moment.

welcome back to "press:here." i thought we'd talk about what's working when it comes to girls and stem careers, science, technology, and sharing and math. 74% of girls now is express interest in stem in schools.

that is in thanks part to mentoring going to those classrooms, telling girls about the fun to be had in engineering and programming. case in point, the band of animators who make the pixar films. this is what you're seeing, it's computer science. danielle fineburg, her bio says she was responsible for among other things, the jelly fish in "finding knee moe," that impresses the heck out of me. she's the director of photography. i said 74% of girls are interested in s.t.e.m. in school naps number just drops amazingly when it comes to the number of girls who become computer programmers. >> why? >> i think there's a lot of messages that girls are getting, especially around the time period of sort of seventh and eighth grade that girls aren't supposed to be interested in math and science, they're not supposed to code. there's some misperceptions

about what you are as a coder, which is one of the really cool things that the code website has been doing with mentors so you can see people actually doing the job so you know it's possible, there's also, they've profiled teenagers who are doing amazing things with music and robotics and medicine. but also just sort of seeing that it's something that you can do, and it's exciting rather than sitting at an office, beating away at a computer, maybe banking software or something. >> do you think that's kind of image of the hacker, let's stay up all night and, you know, play loud music while we hackers is damaging to the image for girls or do they think it's just boring or what's the issue? >> i think sometimes those are presented a little more, i think that's more exciting than the idea of sitting in an office by yourself. >> and it's social. >> it's social. >> either gender. >> i think there aren't as many

women represented there, it looks like a boys fest and girls have a hard time picturing themselves there. >> you're making an interesting point, we've been talking about this problem for a long time now, but, typically within the context of why can't we make science fun? math is fun, but you're saying you need to model a sense of what you might become, who you could be in the world. >> yeah. >> and show them an adult representationation than that more than just yeah, it's fun to be an engineer, here's who i am in the world. and that's the distinction you're trying to make here. >> absolutely. the wonderful thing about tech is you can find something that you love. and you compare it with technology and you can have a career now. so i love art and computer programming, and that comes together in this amazing sort of nexsus of animated films in pixar. if you like music and you code, one of the girls profiled, she started programming beats, and they got sampled by a prominent artist, she was at the grammys

and 19 years old, it's like you can choose fashion or music or all these things and pair them and have a career now. >> i do think we do, if you want the movie the social network or something, the stereotype where computer programming isn't the interesting things that make the world interesting. that the jelly fish in nemo is computer code. you know, and have you seen kids go, oh, i didn't think of that. >> absolutely. there's no better way to get kids excited about not only coding, but math and science, when you show them that pixar films are made with math and science and code, and the idea that you can take those things and it makes a movie, it tells a story, you can make these lovable characters, it's like a slam dunk. it's an easy job for me. >> somehow we made a mistake as thinking of it as two cultures, art, science, pattern finding, pattern exploitation and a creativity. >> absolutely. >> based on mastery of a skill.

>> look ahead to me and do you see that this is a problem that's solving itself? i mean is there, i'm not saying we shouldn't put more effort into it, et cetera, are we at least moving the train down the tracks? the 20 years from now, we'll see oh boy, i'm glad that daniel did all that work, look at where we are now. >> it feels like we're making progress and it feels like there's sort of a swell of support for things. i do think that it could very easily be lost and that we all need to be pushing for it. and so that's why, you know, in a market like this, we have a lot of opportunities with silicon valley here, and we have programs like tech trek science camp for girls or girls who code is doing amazing things around the country with their summer emerging program, but you get into smaller markets and it's harder for people to access stuff. if you go on made with code, they have all this information about coding parties and girl scouts of america and girls for having coding parties with made with code, and there's all these opportunities now, so i heard from a childhood friend of mine,

she's starting a coding club for her daughter in her school, and i thought, that's the coolest thing. mom says i don't know how to code, but i got this teacher involved, and what a cool thing for her daughter that she gets to do that with her mom. >> danielle fineburg, thank you for being with us. thank you for teaching girls and encouraging girls. thank you also for all the wonderful things you brought to pixar, as a huge fan and geek, i'm thrilled to be the person responsible for so much of it. danielle fineburg, thank you so much. "press:here" will be back in just a minute.

we were just talking about danielle fineburg about made with code, madewithcode.com. there are projects you can start right away. you can start them right now. thanks to my guests. i'm scott mcgrew and thank you for making us part of your sunday morning.

hello and welcome to communidad del valle. welcome to the hispanic foundation of silicon valley here on your communidad valle. >> nbc bay area presents communidad del valle. >> we begin today with the organization that puts this event together, the hispanic foundation ball with me on communidad del valle. welcome back to the show, mayor. >> thanks for inviting me back. >> it's always one the highlights, not only of the latino community, but of every community. >> this is the event. >> i can say that much. i know that from other people