press here is sponsored in part by barracuda network. citi national bank, providing lines of credit to help northern california businesses grow. >> a former apple designer takes us inside the mind of one infinite loop, jason green says he's not impressed with a billion dollar company, he wants $10 billion companies, and spud hilton uses social media to shame space greedy air passengers. our reporters, kristina far of reuters, and john of usa today, this week on press here.

good morning everyone, i'm not scott mcgrew, it would appear there's still an appetite for investment by the public, lots of confetti. venture capitol investment sent a number of companies into the billion dollar range, so the-called unicorn companies, and venture capitalist jason green says it seems crazy, but i think 10 billion is the new one billion, in order to really, truly be considered a unicorn company. the new outside standard is many billions, not just one. or to paraphrase justin timberlake, which is cooler than a billion dollars, $10 billion. jason green partner at emergence partners and early investor in the success factors, and box joined by john schwartz of usa today and kristina far of reuters. give us some perspective here, what, what makes a company ten

times as valuable as $1 billion company or put another way, give me an example of a $10 billion start up. >> its been an extraordinary year, this year, five companies have raised capitol at $10 billion -- >> what are they? >> drop box, air b and b, uber. i've coined a new coin, it's called the deccacorn. >> it's only worth $4 billion. according to your map? >> no, everybody freaked out when companies got to be a billion dollar valuation. he's saying 10 billion is the new one billion. >> they called it unicorn because it's supposed to be mythical. there's 50 companies that have -- >> should we celebrate or be alarmed? >> i think there's cause for optimism and cause for concern on that front. there's clearly a lot of frenzy

in the market today. they are growing faster than we've seen grow before. there's fundamental growth behind the valuation. >> this is part of the problem. one of the issues we seen especially around uber is this idea of scaling too quickly. in that races to get around the globe and be in every city of the world, uber has crossed an ethical line. do you think this race to get to $10 billion is going to make a whole new set of companies that just aren't thinking about the ethics as they grow? >> it's harder to scale that fast. but, the problem is, if you don't, somebody else will. and the market value is accruing to the leader in the market, and the capitol is being provided to these companies to really grow that fast. take advantage of it if it's available. >> not just to pick on uber, but companies in general that are unregulated markets, they're running into problems where they're being outlawed, or coming into legal problems.

what i'm referencing about uber thing, i was being sarcastic with the idea that it's valued as much as $40 billion, i mean, in the real world, maybe a couple years ago, they may have been four billion, right? >> understand. >> i think, yeah, yeah, i think everything is so hyped and bubble-sized beyond belief, it's hard to take some of the valuations seriously. and it's probably going to be corrected next year. >> certainly. i think next year we're going to see more happen than less. not $40 billion, but five, maybe $10 billion. >> not on the same scale, but you'll see just as many. >> what kind of revenues do we see? senatechat, they don't have a confirmed strategy. and this is something that the company needs to work on. regardless the valuation is just spiraling out of control. >> yeah.

so at emergence we focus on business to business companies, enterprise companies and focussed on revenue growth as the primary growth of value which is an early investment started, you know, when we were investing, you know, several million dollars. today it's a $5 billion revenue business. now it's valued at 40 billion, it has real revenues, millions of customers, and real value. i think these companies over time will have to achieve those revenues to justify those valuations. >> intrigued me as box, so i know its been delayed, the ipo is delayed. is that one you'll put in 2015 among the billion dollar valuations and something that goes public? >> it could be one of them. i can't comment specifically on ipos, but it's clearly on a trajectory. it's about $2 murks million run rate business growing 80% year over year. this is a business that could be public in most markets. >> let me point out to the viewer, john quite knowingly put you in a strange position there. not that we're letting you out,

but it's a strange position. you are an investor inbox, looking to take itself public. >> correct. >> there are ways in which you can and can't. we're going to figure out which ones you can. in the case of a company like box, how do you sit down and value a company, it's easy to value a company that's making revenue, it's much harder when you think of its potential revenue. box has a burn rate. how do you determine guys, and women, this is something we should be investing in because it has a value of x, well how did you come up with that number if they've gotten a -- they've got no revenue? no profit. >> no profit. well ultimately you're doing an analysis of if they will some day. box has $30 million, 250,000 organizations that use the product, they could have two and a half billion dollar users. they sell more to the customer the next year.

>> do you ever fuzzier sometimes, not speaking specifically about box, but when dealing with companies in which we were dealing with the one billion a year ago, now we're dealing with the ten billion, seems like there's a little bit more fuzzy wiggle room there for trying to figure out what the valuation is and where you should put money in. >> the good news about our job, we start early. we're typically the first or second investors. we have a lot of head room to go. >> why do companies then become the last investor? why does alibaba invest in uber? why would anybody be the last guy in the door? >> facebook's $100 billion valuation, you've doubled your money. these companies see opportunity to put capitol to work and market-leading companies and make significant returns. it's not our business, but certainly the public market investors are moving into the private markets because they realize if they want to be part of the growth economy, they can't wait for the companies to go public. it was a billion dollar valuation. so people made a 30 times

multiple on their investment. >> twitter is linked into stocks and down significantly when you mention facebook, the reality sets in later. >> these are early verss coming in before. >> longer terms, amstone came under a lot of criticism early days for its valuation, look at it today. google came under criticism early on. look at that company today. you have to believe in the future of growth. >> you look at even your own firm. emergence did well with viva which no one had heard of. everybody's heard of twitter, how much of the hype actually matters? once the company goes public?

>> here, what's interesting is viva is a profitable business. growing at 60% plus per year and document nanlt in the market and nobody knows because they're not a computer company. >> pharma sells products into the marketplace. that's okay, they are valued ultimately on the financial performance. and so we're happy to be, you know, investing in the enterprise companies and building value long-term. >> jason green, will you come back after box is, if of course, if, if box goes public. >> that'd be fantastic. jason green, thanks for being with us this morning. >> thanks. up next, inside apple's design team when press here continues.

welcome back with the first time i saw a cell phone with a camera, i wasn't impressed because i couldn't figure out what you were going to use it for, obviously i was wrong, and the ipad seemed weird, because why would you want a computer without a keyboard and i was wrong about that too. so i should withhold judgment on the apple watch until i get a chance to wear one and see what all the fuss is about. i should just not comment, but i can't help myself but ask mark to weigh in. he knows a thing about apple. he was senior designer at apple, and in fact is the fella behind

iphoto, later worked as a product evangelist. holds 13 patents and founder of storehouse, app that turns picture into a slick web story. thanks for being with us this morning. i want to make it clear, you do not work on apple watch, right? >> right. >> but you've seen photographs of it and video of it, what's your initial impression as a guy who worked as an apple senior designer? >> i think it's amazing. the word they keep on using that stands out is intimate, and they think that's the thing we're all waiting to see what it actually means when you put a computer on to your wrist and are wearing it. what is this intimate behavior -- >> speculate, what does it mean? you know better than anyone in the world, what does it mean? >> i think it's got to be something around the communication and the fact that you can now actually touch somebody if they are wearing a watch as well. being able to doodle or have that vibration and just other ways that you can now communicate with people with probably having the sensors that

are taking to other sensors all the time. it seems like communication will be the main thing. >> when i was a kid we used to wear a watch. >> i think it will happen were for people it'll be different things. maybe other people will be monitoring a child, other people it'll be just for fun. they want to talk to their friends. i'm not sure it's always going to be one single thing at the beginning that gets everyone to turn it on, but i think it'll change behaviors. >> do you think apple has a target demographic in mind for this watch that is just maybe more niche than the mainstream. i thought it was interesting that apple chose to launch the watch in vogue china rather than u.s. vogue. is that a broader strategy we may not know about? >> i think it's definitely it's attracting to people with money.

at the end it's not a cheap product. and definitely in china and chinese readers of vogue have a lot of money. definitely it's a wide variance of dem graph though. they're having everything from the luxury gold plated watches down to something that's more accessible. >> do you think women will like it? i found that wearables to be very chunky. >> yeah. >> i think a lot will depend on the functionality, if it provides a good enough stuff, it'll go. >> you were there for ipad, the original. take us inside, we're outside the apple announcement speculating as to what apple is going to announce. what percentage of people inside apple know steve job's is going to pull out the ipad? all of them and kept a secret that well? it wasn't that much of a secret. but getting inside the other, getting inside the door. >> yes, i mean, at the time the company was way smaller than it

was today obviously, and so the amount of people working on the product was a higher percentage of the company at that time, they were definitely a fair amount of people that knew the secrets. >> so there are people at apple who see the ipad or the iwatch or the whatever might go, oh wow, that looks cool and never seen it before. >> most of the company is learning about the product announcement just like the general kmurls with the big keynotes and very exciting event even for employees of the company. >> may may be going to speculative territory here, apple's been hiring in health care. then we saw this watch get announced and there's already cool sensors that can do things like heart rate, monitoring and send out measurements, kind of a cool feature, do you see them using the health contingent they built up for more sophisticated things?

>> i hope so. that's a big question and even inside the company it's hard to know what's going on outside. it's even trickier. but when you think about the sensors and the trends happening with other companies and seeing apple what they're able to do with the hardware and the ecosystem, it gets exciting to think about them getting into the health care sector. >> mark, you're not going to program storehouse on to the apple watch, that would be silly, right? it's way too small -- >> i think the way we're thinking, how does it extend the whole, you know, ecosystem of storehouse for us. our main experience is on the phone and built around the video camera and the still camera, but there's still definitely a lot of things that we may think is interesting knowing where your location is, where you travel -- >> content. i played with it on the iphone 6, and i loved it. basically takes your photographs and movies and makes them into a story that looks like it belongs in usa today or, you know, in dig or what not without you actually having to know any

coding. >> right. >> it looks outstanding. >> thank you. yeah, that was one of our biggest goals was try to make something that looked beautiful but took no effort from the consumer. i think with the watch, one of the things we're thinking a lot about again is going back to your first question, the communications side. a lot of people are creating stories on storehouse with the idea they're going to be seen by somebody else. and so if the watch can improve communication, let them know your story is published or someone's working on something, there's a whole lot of different things that we are examining and thinking about for the launch and storehouse. >> mark is a storehouse founder and long time apple designer. >> we appreciate you being with us this morning. >> thank you so much. >> up next, the travel editor for the san francisco chronicle uses social media to shame those who take too much on the airplane. do not carry on. press here continues.

welcome back to press here, my mother told if he you could not say anything nice, don't say anything at all, which is why i'm hoping she is not watching this morning because we're going to say not nice thing about airlines and some of their passengers. specifically passengers who carry on way too much stuff. the kind of people who should be shamed, and they are on social networking under th the #carryonshame. collection of photographs taken by people all over the world of

other people who are frankly jerks. it is the brain child of spud hilton, travel editor for the san francisco chronicle who writes bad latitude. there's the lull award, and spud won it seven separate, eight, ten, separate times. holy cow. you need to up your online biography. >> i apologize, i should did shamed for that actually. >> you know, i understand that i, passengers are trying to get around the bag fee. i understand nobody wants to stay at baggage claim. god, i wish we could all get along and understand we need to check our bags and bring a book and maybe a laptop and a soda and then call it, why do people do this? >> well, let's clarify first by pointing out that i'm not trying to shame the passengers, quite. i'm trying to shame the airline who are letting those passengers get on. because their rules are clear. their rules are really clear. >> yeah.

>> they have the bag sizers everywhere, and in some cases, it's weight instead of size, but that's more international. i'm trying to get the airlines, that's why for every picture that i want people to turn in, i said, put what airline is allowing this bag to get on. because i think that's important. the thing about the people is that a lot of bad behavior is justified by the dehumanization that. >> reporter: -- >> they pack up in the cattle cars. we have no control. unfortunately, what that means is that instead of taking it out on the airline, we tend it to take it out on each other, which is ridiculous. we fight for the armrest. we fight for overhead space. >> i paid that extra $10 for the boarding. i don't fly first class, but i will pay for the priority boarding so i can have the space. >> if you're lower, you're hosed. >> forget it. >> one of the things that we take it out on is bringing on

those giant bags. people don't realize, they think they're getting back at the airline, they're not cheating the airline, they're cheating each other. >> do you find on the better airlines you get less of the bad behavior or is it an affect rebellion when they're trying to squish you in? >> i think the smaller the space, i think the demographic for the airline that people are tending to bring more things on. whether it's southwest, whether it's, you know, i think with people who are trying to save money, those airlines, discount airlines, you're going to get people bringing on chickens and goats and everything else, they're going to bring the whole kitchen sink. >> baggage is getting bigger at the same time and open bins are getting smaller. hello united. >> exactly. >> shoving a bag, normally a small ball, here's the other thing, by the time you get to the airport, if you're in europe and travel to an airplane, it's easy to get in and out.

here it's a hassle. once you get through security which is another hassle, people are at their wit's end, by the time they board, it's like open warfare. >> it is. again, why can't we be taking this out on the airline? dollars, walking away, or instead of each other. >> why would the airline have a bag sizer thing, and now enforce it? is it that they're afraid of making et person who is carrying the chicken, we have some pictures, i mean, the person will have a purse, laptop, backpa backpack, a carry on, et cetera, et cetera, where somebody who needs to say no to this person, and it's got to be the airline. >> it has to be the airlines, but there hasn't been enough pressure on the airlines. every time you do that to somebody, your choice is to either make them go all the way back to the counter and pay their $25, or to gate check that bag for free. but most people don't know is if you gate check, you're ten times more likely to have things

missing. >> why? >> that's a whole other story. >> five finger discount. >> and it's not usually locked. and it usual has things you want to carry on to the plane. >> oh. more valuable. less underwear, more computers. >> are we an era of the vigilante passenger. i read about the knee braces that you can wear so the person -- >> i won't say the name of that gadget because i don't want that guy to make another dime. there's a gadget that you put on the back of someone else's seat, there's your problem with that, two problems with that, one, does the word disable a working piece of equipment on an airplane ever sound like a good idea? >> no. >> here's the second problem, if you do that to somebody else, you've given up all right to complain about somebody else doing it to you. you've just given up that right. and it's ridiculous nap person has paid for that space. now it would be more polite if they looked back and said hey,

is it okay if i recline, is it going to be a problem for you? very few people actually do that, but they paid for the ability to recline. >> remember when people used to check their baggage in. when did it change where we're -- >> when the $25 fee came. >> six years ago. i emphasize this, six years ago, there was a price increase. milk goes up, cars go up, price goes up. six years ago, all of the airlines follow each other and said, we're going to increase the price for people who use this specific service which is checking your bags. everyone went nuts. everyone went ballistic, they suddenly lost their minds and said, i'm going to fight back by bringing everything i can and i'm going to skip that over. well, it's six years later and people are still obsessed because they know travel journalist, the second they put baggage fees won't get hits because everybody still whining

about it. >> so i've definitely gotten told off, when i get on to a plane and they say put your electronics away, and this seems to be something that bothers them, but i never see anyone get told off for the giant bag, which is more of a hazard in my view, it can fall out on to someone -- >> i've seen it happen. >> yeah. >> why the airlines don't do something. >> the airlines want people to be happy at different stages of the process. they know that everyone wants to get their space on the plane, but they put that at a lower priority than getting a whole bunch of people in line at the gate, angry there. before you've even boarded because it's a time suck if you stop them there. you want to get people on the plane. we've already, because of the carry on, we've already add so much time to the boarding -- added so much time to the boarding pros they don't want to add more by stopping people and

saying you can't do that. >> fewer flights and more people packed into airplanes. there was one open seat. now they're all taken now. literally. >> we could talk about this forever -- >> complaining. >> i understand. >> spud, we appreciate you being with us. you are online and t the #carryonshame. >> yeah, and you can find me online at sfgate.com/badlatitude. >> and one word answer to this domestic airline in the united states -- >> virgin america. >> correct. we'll be back in just a minute.

that's our show for this week. i'm scott mcgrew, thank you for making us part of your sunday morning.

hello and welcome, today we celebrate the holidays with everyone here. >> nbc bay area presents this show. >> local author, new book is out and it's kind of riveting, it's hidden within the fog gates. it's about a terrorist cell in the city of san francisco. with me here is the author of this book. she is a little nervous about her english, i'm nervous about my spanish, so we'll get through the