ome. this week, chasing down the next tik a venture capitalist on how to make money from gen z. and the return of palm. how two founders brought back a brand from the '90s and turned it into a phone for the future. our reporters mark nu from china global television and "fortune"'s mikael nevran, this week on "press:here." good morning, everyone. i'm scott mcgrew. one of the struggles of coverin people in particular have adopted. the latest rage, you might be thinking, is instagram, but that'smillennial. think younger. gen z particularly found of tiktok, a new video-sharing app that sort of freshens up snapchat by using the old idea of vines.

if you don't have phone, that doesn't particularly surprise me. it escapes the notice of many adults. now, there's money to be made in gen z, and my first guest, marcus stroud, is ready to make it. he's partner in austin-based capital venture firm txv. his first investment is in a music service called matter that uses the blockchain to make sure artists get paid. marcus is too old to be gen z at the ripe old age of 25, but he is hoping to get the next tiktok funded. joined by mikael from fortune and paul nu of china television. what is gen z? literally, what is it? what's the definition there. >> yeah, gen z is anywhere from 1997 and 2001, 2002ha you said,n years removed from that but m s the bubble, about two, three valley in rt in touchitgenerati.

what are they into? >> yeah, so, i think the best example you gave is tiktok. i think gen z is the generation of ai. it is the generation of automation, of iot. i think tiktok is such a phenomenal example of gen z in that, you know, you have this platform that literally is a product that utilized ai to, you know, create and share content in a way that other platforms haven't historically done. and the way gen z's adapted to that i think has more or less set the trend for a lot of consumer applications that are, you know, are bursting onto the scene right so, i think that'sn the valley and across the country looking into this space in particular, you know, to find the next hot product for gen z. >> does gen z get blockchain? are they all about the blockchain? >> yeah, i believe so. i think we're more or less -- not we're -- i keep -- i feel like, because i'm on the bubble old when you put yourself as in an older category, so, yeah, but

thanks. >> i would say, yes, i do believe gen z does get blockchain. i think as blockchain becomes -- you know, you've seen recently with the amount of regulations the s.e.c. has been putting out around various securities as it relates to blockchain, i think as it relates to the platforms, i think gen z's really going to be the ones that adapt this and take it to the next level in a way that millennials haven't yet truly done just yet. >> they get stereotyped as having a short attention span, being all does it play into your strategy? are those oversimplifications or >> no, i believe you're 100% right. i do believe that folks within that cohort do hettention span. so, i think when you have technology that leverages, you know, technology that itself ke from that, i think that's what's generally leading to the success that comes out -- >> give me an example of that. what's the thing you're looking for in which you say, yeah, that's where we're going to put our money, that's an up-and-comer among young people? >> yeah, so i mean, it goes back to what i said earlier. like, if we see iot, we see ai,

we're like, yes, yes. and as it relates to, i guess the particular segment, in terms of gen z or millennials, we're like, okay, what are the hot trends right now out here in the valley? what are the hot trends right here in the middle of the country? so, for us, we have a test we like to utilize with 300 or 400 customers, if you will -- we'll send out this test, like hey, this is a technology we're looking at for the music space. like matter is utilizing blockchain and transparency to compensate artists in ways platforms haven't done. so we're looking at technologies that have an ability to change the way we think and feel with products, and we feel the gen z and millennials are adapting to that little bit more than the previous generations. in silicon valley or -- >> yes. >> -- austin or -- >> yes, i think silicon valley and austin are the two best examples to kind of see the adapters of these early technologies because they're so diverse. i think it's very hard to find markets that are as diverse as

silicon valley, austin, and i'll throw new york city in there as well. and i think we've been very fortunate to be in a place like austin and now having an office in san francisco to see that reflect upon consumer behavior and buying patterns. >> it's interesting you mentioned iot and, what was the other -- automation broadly, right? and it seems like some of your investments at least are in the consumer space. i wouldn't necessarily associate that with a consumer space, those technologies. are you looking also at -- i mean, this generation we're talking about is in the workplace and coming into the workplace. are you looking also at ways that they're going to be, you know, working and what they're going to expect from their employers? >> exactly, yes, i think like i said, this generation isdiverse, and so, we're looking across everything. and i think, you know, the workplace is very indicative of a lot of the consumer behavior and the consumer patterns that these companies are

demonstrating. so yes, to answer your question, we are looking at that. and i think what the affirmists try to do is truly have a broad, i guess spectrum in terms of what are we looking at for investing in that generation. >> let's talk about you for a minute. you were a religion major, right? >> i was, yeah. >> okay. what does a 25-year-old religion major -- how does he find himseln princeton, i lookedecon, but i had achance at a really, really football me how important it is to just be able to think, you know. so, it's so easy to major in something and learn just basic numbers and basic equations, but to be able to truly think, i think really equips you for life and work. so, i was like, what major is going to force me to think in a way that i haven't necessarily thought before in my life? and settled on religion. so that's how i ended up in religion, and made my way into finance after i graduated and stumbled upon bc, and it's been a great journey ever since. >> i'm going to hog the last

question, too, and that is, you mentioned that you're austin, texas-based. we're well aware of the check in austin, but you have opened up an office here in the san francisco bay area. why is that? why -- because it makes us happy to hear that you come from austin to san francisco, and not the reverse. what brought you into san francisco? why'd you have to be here? >> i think at the end of the day, the valley's the valley, you know? you have all these people who are saying, hey, this is the next tech hub, this is the next tech hub. there is never going to be another silicon valley, and you want to be able to take advantage of that. i think austin is so great right now, and for emerging companies to begin their business, because it's just hard to scale out here. i think the cost of living just forces entrepreneurs to look in other places. but at the end of the day, there's still not enough funds in the middle of the country that can help right the series, do the checks and have the resources that silicon valley has to offer. so, we're excited to be out here. we're excited to be able to merge the new and upcoming

community of austin with the established community of silicon valley and we think there will be a lot to that. >> marcus stroud with txv venture capital, thanks for being with us. >> thanks for having me. unfortunately, not everything gen z does is good for them. the fight to keep the younger safer on their phones when "press:here" continues.

they both win. when the house goes up, and they both lose when the house goes down. and we enable the homeowners to be the best homeowners they can be by educating them to train and make the right decisions along the way. and having that institutional partner on your side is very powerful, because the rest of real estate, all of the institutions are on the other side of you. now you have a part thaer in the business that actually is helping and has your best interests in mind.

and it puts the homeowner back in control of owning the house, which is very different than a bunch of debt and more debt, where the bank is really in control. now you're back in control completely. us helping them is a very profound satisfaction. being able to home securelytg. welcome back to "press:here." you are a sophisticated audience. you make many of the devices and services that americans use every day -- the iphones, instagram, what not. so, when i tell you there's a problem with bullying and sexting online and over the phones, you already know that. you may have dealt with it with your own kids. how glad are you that you didn't go to school in the era of

snapchat? jordan is with atlanta-based security company bark and is an expert on what's going on online and in our kids' phones, because her company monitoring millions of kids, both on their personal devices and what they're doing in schools. parents then alerted on their own phones. use explicit texts among them. thank you for being with us this morning. i thought, and i introduced this as we're very sophisticated, we know all of this here in silicon vall valley. and then i read that kids are harassing each other with google docs. >> isn't that nuts? >> nuts! >> it's reality, though. i mean, the thing is, is it looks seemingly innocuous. you know, you go into your kid's room and idocs, i'm working on a report. >> not checking your snapchat. meanwhile -- >> yes, because children can access that in schools, it's not blocked or filtered. so, it's a whole new world out there. >> so, it's such a variety of formats. i tell my kid to stop -- she has

kids, too -- they just move to another device, move to a different app. how does your technology sift through all that? >> absolutely. so, you know, as a parent, you can only connect your children's devices and accounts that you ow abo. thankfully, our algorithm can sense a drop in activity. and if you know your child is still on a smartphone, chances are, they're doing something somewhere. and so, we encourage open and honest conversation about where are you spending your time. >> and that's part of the company's services, right? you actually have people that you can talk to, that parents can talk to? >> yes. that's a huge thing, because we ar unprecedented. no parent has ever had to parent in the digital age. and so, we need other parents to talk to. so, we have our family online support specialists that you can talk to and actually get a walk-through of how to connect your children's devices and accounts and keep them safer online. >> so, we're talking about everything -- snapchat and kick and all of those things -- you're monitoring all of them, because we as parents have given you the access to those.

>> that is correct. >> and then if the child says something that is inappropriate or dangerous -- >> right. >> -- in particular. what is, aside from google docs, what's the app where you're like, yeah, i'm sure it's going to happen there? is it snapchat? what's the thing where all the bad things are happening? >> it depends on the bad thing you're talking about. let's say online predators is a concern of yours. then your children probably shouldn't be on tiktok. it is rife with predators. if you don't want your child to receive unsolicited, nude photos of body parts -- >> i would prefer >> i mean, pa prefer that to happen. instagram. even though your child's is sen private, they can receive unsolicited messages to approve in their dms. snapchat is obviously concerning because it's whole premise was disappearing photos for sexting. it has moved away from that. but again, any platform has the risk, given the fact that it can

be used for a variety of means. but i'd say given where children are spending their time now, tiktok, instagram, snapchat are the three most concerning. >> one of the challenges that a lot of social media companies have had -- only one of the challenges -- has been to actually -- now that they have rules scrutiny, but enforcing them and how to use the combination of people and ai -ng. so, how are you addressing that? because i imagine you also have volu messages and all sorts of information that you're sifting through. >> two things i would like to touch on, based on that amazing question. one is that social media platforms today are doing a lot based on algorithms and human review team, but if they don't stop the problem where it starts, which is, you can -- if they're under the age of 13, and all you have to do is toggle that birth year, right? so, let's not let 7-year-olds on snapchat. we know that they're there.

so, let's push to make age verification a realistic and accurate measure. and then also, you know, parents just have got to be aware of what is happening on these devices and accounts. and when you hand your child a tool that can access the internet 24/7, it really is a tool. and just like you helm for example, do you monitor even conversations,game fortnight, all that stuff, actually listen to those conversations or -- >> and how can you tell what's potentially, you know, if there's going to beplac or -- >> thankfully, we spent 18 months just perfecting our algorithm. we're using conversational analysis, machine-learning algorithms to be able to tell the difference between kms, which means kill myself. you know, if i trip on set right now, kms, i'm embarrassed. but if i'm experiencing thoughts of suicide and depression, that's a whole other meaning.

so our algorithms can tell the difference, and not just text, but emojis, video, audio of children 7 to 17 across 25 social media platforms, email, and text messages. we're able to gain reaim insinto that. >> i read thatble to stop some shootings, is that correct? or how did you do that? >> yes. , to date, we have helped escalate 16 school shooting threats to the fbi. >> oh, escalate. like, that's not a good thing -- >> no, we have helped to escalate those threats. it's probably many more given the amount of alerts we're sending each day, but those are the ones we could actually confirm. >> and what were the key things that were found? >> anything. i mean, i child could write on the bathroom wall, don't come to school tomorrow, bang, bang. they could take photos of guns in their backpacks. it can be a combination of google searches for how to load ak-47. it's a bunch of different data sets that go into forming this picture. >> and let me just be clear, then i've got to get to a commercial. but when, let's say, you see a

picture of guns in backpacks, who are you alerting? are you alerting the parent? >> well, in that case, that is level four. i mean, that is the top threat level -- >> no, i understand, but who gets the notification? >> who gets the notification? it is local law enforcement in addition to the parents. we are not going to let that sit -- >> when it comes to schoolhechod you to do that as well, correct? >> correct. >> which you provide to schools across free. >> yes, any school across the nation can use bark schools for free, because schools are required by law to monitor their social media accounts. >> and tatania is with bark. bar bark.us to check it out. it the return of palm, when "press:here" continues.

welcome back to "press:here." the modern version of david and goliath pits a small phone made by a small company up against

apple iphone. now, the cellular version of david is named palm, and if you're saying to yourself, wait, i know palm, that's the idea. the founders of this very new company bought the rights to the name, all the better to get attention in a very tough marketplace. here's a better look at that phone. it's small. it's limited in what it can do,. the palm phone is intended as a second phone, something you take with you when you want to concentrate on real life and not a screen. dennis is co-founder at the new palm and before that worked at samsung and google. thanks for being with us this morning. i should point out so the viewer understands, it is possible to have two phones but one phone number. >> exactly. so, we have a great partnership with verizon, which allowsber t multiple devices, so -- >> i just decide i want to take thisone, want to take that one, whatever i put in my pocket, that's the one that i can use all day. >> exactly. and the beauty of palm is that it will pair it with your iphone or android device. so, it would share the exact

same phone number as your main device. >> walk me through the decision to call it palm. >> well, i guess the name fits it perfectly. it fits into your palm. >> yes. >> well, we had the idea of palm where the brand stood for innovation and we had to bring a sense and a spirit of that innovation back. so, with the brand, it was a so, many who know the brand have fond memories pal being the first device that was in the palm of our hands. it was the first time we had a screen in our pocket. and there's an opportunity now to reinvent that for a whole new generation. so, it's an invention story. >> how does it fit in with generations, like older generation, younger generation? is it to decompress from your phone? >> the ethos of palm is to have a healthier relationship with technology. we've seen the data where our relationship with technology and screens has had a really big impact on our lives. so, the ethos of palm was to connect us in much better ways,

find the opportunity to bring a screen to your life in the right situation. so, it's less about making screens the enemy, but the opportunity is our relationship with them. >> so, how did you decide what to put on it and what not? like, what functionalities did you keep? >> sure. so, as you can see, palm is the size of a credit card. it actually has the power of a smartphone in the size of a credit card. and what we found in our market research is the essentials for people are very different. so, if you look at a runner or a cyclist, their essentials being away from their home may involve having their music streaming service and a fitness tracking app, whereas the essentials for a icion in a device that is small and very capable. so, palm is really meant to be a device that allows you to bring all of those essentials with you, and you select what those essentials are. >> i almost think it doesn't need to be a phone, you know? to actually -- to talk to it -- you know? did you think about it -- or is it just so easy to add that technology so cheap, we're like, we'll let you talk on it, too?

>> well, weredefining communica our interaction with screens. so, naturally, when we're on the go, we communicate through texting and we communicate through making phone calls. so, naturally, having the ability to make a call and send a message was very important for us. so, when we first launched palm, it was available as a companion device, and that is that you can add it on to a larger phone where you have a larger phone for your productivity, watching video and large screens, those mini tablets ended up ruling how we interfaced with real life. so, what we decided to do for those scenarios is that you could leave your phone behind and take palm, let's say to the gym, running, or it turns into that weekend it allows you to focus on life outside of the screen. >> i want to go back to the branding question. you got steph curry to endorse this. why steph curry? obviously, he's a great basketball player. he's a super nice guy. but what was the division? you know, not

baseball-basketball. and not the lakers-the golden state warriors. >> we're a san francisco start-up. so we're based out of the u.s., out of the bay area. and we had an opportunity to meet steph, and he absolutely fell in love with the vision -- >> well, you paid him a lot of money, too. >> well, actually, he's an investor in the company. so we don'tendorser. so when our vision for palm it really resonated with him, i think starting with his ability to focus. when you look at focus around game or practice, it's around living outside of a screen, and that's what palm is about. >> i just walked into that little marketing gimmick, didn't i? that was well done. i like that. >> can i ask you real quick? >> sure. >> so, even if it's a paired-down phone, people want it to work well. and you've gotten some criticism for things like the battery life or the camera. have you addressed some of those concerns? and what do people care most about? >> we definitely have. so, we launched a new version of the palm, which allows it to be a stand-alone and primary device. we had overwhelming market feedback in certain segments,

one specifically minimalist. those who love the simplicity f key applications that matter to them when on the go. and the second segment was kids. as a parent myself, connecting kids was in mind, and a lot of the feedback that we received not only from our initial customers, was how do we create guardrails for kids when they first become connected. so, it's a device that allows you to, one, connect a kid the right way, where you can set certain boundaries, where the device can make calls and messages only. there is parental tracking and peace of mind included in those applications. so, it allows us to set the right boundaries for how we start to connect youth. >> $10 a month, i believe. smartphones are getting so expensive, $1,000 smartphone, that you're essentially having to pay more not to use such an expensive phone, right? i mean, are you worried about that? >> no. so, as a primary device, it becomes a really stellar opportunity for new segments and new verticals. so, we talked about kids. another vertical is looking at

sports and athletics, when you can take a device with you. it is ip-68 water-resistant, so you can submerge the device under water, gorilla glass, so it's very durable. it allows you to take the product places where your phone can't go. and again, it goes back to our relationship with screens. so, having a device that allows you to, one, connect with life outside of the screen is the mission of the company. so, there's a time and place for larger screens, and we believe the future will get small again. >> dennis, i want to squeeze in one last quae. you ag r many years. you make phones. when they came out with the foldable phone, did you think it would work? >> i knew you were going there. >> you didn't make a foldable phone, dennis. >> well, i think what we focused on was more about experiences and less about -- >> no, at samsung. are you surprised it didn't work? >> well, i still think time will tell. i think looking at early adoption of technology, you put yourself out there and you start to see these new experiences, which will matter. so, it's a generational thing.

i think it's going to be an evolution of that technology. it will take some time. >> all right, dennis, thanks for being with us this morning. appreciate it. >> thank you. >> back in a minute. >> i think the most important day of my journey was the day i decided to quit. i had been working in ad agencies for 18 years, and i had grown up through the '80s and & 90s, where the personality types of that time were those that were very aggressive, cut-throat, bang your fist on the table. those were the personalities that won, and i realized at that pointpersality, and it wasn't really soul-fulfilling. at 39, i sold my house.

i put a backpack on my back and i set out to travel. i was spending a lot of time by myself and really reflecting on what it was i truly wanted from my life. what i found was imptauths. anything that i did felt truly authentic to who i am and that anything that i decided to market really needed to have a mission behind it. unison is creating a breakthrough category called home-co investing. we help people access money in a way that has never been done before. investors have known for years that a combination of shared equity and debt is the best way to go into any arrangement. as the cmo of unison, it makes me feel like i'm doing something that helps people in a way that i could have never thought of doing when i was younger. it connects me into a fundamental truth, that people absolutely deserve to be happy,

want to live. feel just a littl better waking up every morning knowing that there's somebody else waking up every morning living in their dream home. that's our show for this week. don't forget, we have a new podcast called "sand hill road." i want you to subscribe to it, as i've said. download it on every device you have. let's get those numbers up. you'll find it out on itunes and google play, wherever you get your podcasts. if you enjoy this show, you will enjoy "sand hill road." if you don't like this show, you will not enjoy "sand hill road." that's our show for this week. my thanks to my guests and thank you for making us a part of your sunday morning.

♪ welcome to the u.s. bank nbc sports report. hi, everyone. kathryn tappen, the u.s. equestrian championship is straight ahead. but first a stunner at the kentucky derby. for more we go to mike tirico, randy moss and jerry bailey. >> of the 144 prior kentucky derby memorable in their own right. but this year, the first horse to cross the finish li maximum security was disqualified. country house won.

what happened. >> focus on maximum security's .