>> i'm a huge dropbox user. i don't know how i would like organize my life without dropbox. use it to sync my computers and files, that's how we share files at y.c. we'd be in a really bad place without dropbox. don't go away, i would say. >> we'll be around for a while. emily: in the early day, people were worried google would kill you. what did you do to make sure google didn't kill you? >> y combinator's motto is, make something people want. our customers love dropbox. we have spent so much time building a product people love. this is the one thing that we do. and we've built a huge audience. we're solving a problem that every person, every company in the world has. so that is really at the heart of building a successful company. >> one thing i've wanted to ask you related to that, when you guys were in n.y.c., people were say, google is going to kill them, -- were in y.c., people kept saying, google is going to kill them, apple is going to kill them. how did you motivate the team or deal with the uncertainty when you have 800 pound gorillas always just around the corn he

of dropbox, thank you. this electric skateboard disrupt the industry the way airbnb disrupted hotels? we'll test it, next. ♪ emily: you're watching a special ition of "bloomberg west" -- "unicorns: bubble or boom." let's focus on a more recent y.c. graduate, boosted board. trying to solve that last mile commute problem, the last stretch from the bus stop or train station to your destination. but it's not cheap. the lowest model costs $999 and runs up to $1,500 for a model powerful enough to climb the hills of san francisco. so does boosted have what it takes to take on the transportation industry? let's take a look. >> i'm the c.e.o. and co-founder of boosted. we started with a long board, different than a normal skateboard, it's a lot more for transportation. the biggest problem is we were trying to get around this dense campus where other vehicles like cars didn't work. we wanted to get quickly between buildings that weren't that far apart, a mile or two at the most. about 20% of u.s. commutes are under f

think customers love dropbox.e have spent so much time building a product that people really love. this is the one thing that we do , and we have built a huge audience and we are solving a problem that every person, company in the world has come so that is the heart of building a successful company. , when you guys were in nyc, everyone said, google will kill them, apple and google have this product ready to launch and it kept being delayed and it would be the dropbox killer and microsoft had one, and i think that this tough because that scares people. how do motivate the team or deal with uncertainty when you have these 800 pound gorillas around the corner? the people that join the company have been dropbox users for a long time and they love the product. realize step back, you that any company that becomes great always has a petition. facebook was -- has competition. facebook was worried that google would come after them, microsoft was worried ibm would come after them. if you don't have competition coming when

what we focus on 500 million people using dropbox, 8 million businesses using dropbox, 150,000 of themaying like expedia, all these new big deals. our customers are happy and we are happy. emily: if you could do it again, would you take money from a $10 billion valuation? >> the markets were different then and we, like other companies, will be affected by the public markets. whatever we are today, it will be something different tomorrow. valuation is an output so you have to focus on inputs. emily: on one hand, people say this is just on paper and snapchat has gotten written down and up, but it does have a ripple effect on sentiment. how much do they matter? >> it doesn't matter that much. stocks go up and down. fidelity has marks down and up. i know fidelity marked down the dropbox shares at one point. it is unclear to me if they believe the markdowns because i have once before offered to buy the shares from them after they marked them down and they did not sell it to me, but i offer that again. we would love to buy them. emily: if you are expecting sentiment and even if it does not a

a law went to know if evaluation of dropbox is not what it is supposed to be. >> yes.hink you have a letter of investors on besides trying to figure out what these companies are worth. in technology we see it happening, trying to figure out what these companies are worth in the long run. i think the discrepancies we see across the mutual funds is reflective of that. carol: next up, california wine country gets stiff competition from some unlikely basis. we'll tell you where you might find the next napa valley. david: in and we will take you inside the grand prix of magic, the gathering. ♪ >> welcome back to bloomberg businessweek. david: carol, have you heard of magic the gathering? l: no not really. they've it: there is a photo essay of magic the gathering. photos of 4000 plus fans who descended on the capitol. i remember the game from high school. carol: it is wizards competing with each other. something like that? ava: yes. some of the cards are worth a lot of money. started in 1993. hasbro bought the game. still very popular all these years later. of them go for th

dropbox has faced several write-downs by mutual funds.o them about how that is affecting them and what they see in the future. david: some news today out of brooklyn, t the justice accessent pressing for to an iphone that belonged to a drug dealer. the government pressing ahead in its case against apple come asking them to help out with this jugular phone. even though they dropped the san apple doescase -- not know why the government is pursuing this case. there are several open cases dealing with different iphones. something that will ultimately have to be addressed. keith alexander, former head of the nsa is now running his own cyber security startup and he believes there is another big attack coming. take a listen to what he told me. keith: in cyber, when you look at what is happened from 2014 to now, you see an increase in attacks from other countries. attacks going from financial institutions to energy institutions. in the asian countries, you are or -- you saw the ukrainian power grid get taken down in december and generate. and jan

--how much is dropbox dropbox worth?ou ask these mutual funds and you will get a different answer in a matter which one you talk to. >> think of startups and immediately you think of venture startups -- venture capitalists. is this a new thing and what are the particular challenges? >> it is not necessarily new but what is new is the rate at which these fundings -- funds are investing in private companies. if you compare it to a venture capital firm, their shares are not publicly traded. if you are not a venture capitalist you don't really care if their valuation drops because you are waiting for the longer game. these are publicly held, publicly traded mutual funds. >> you hope to have transparency. >> yes, there is very little. -- they will speak very generally. they will similar can the indices and the other values. but their actual methodology is none of our business. >> is there a push for more transparency because of that? a lot of people want to know is the valuation of dropbox what it is supposed to be? >> you ha

dropbox says you're need the messenger and dropbox apps on your phone. you can tap the more button and share with friends without having to use links. facebook says the feature is rolling out gradually so not everyone will have it right away. facebook is also taking another step in its efforts to keep users on the site longer. ticket master will start sending on facebook. it hopes to provide a more seamless purchase experience and obviously sell more tickets. >>> there's a new app to help you spend less time on your smart phone and you can learn how much time you're spending by using your smart phone. the app is called glued. tracks how much time you're using your device and shares it with your family. essentially it shames you to put your phone down. glued came up with the idea for the app because smart phones and tablets are just about everywhere. we notice they impact the amount of face to face time we have with our families and others. >> i don't even want to know how much time i spend on my phone. >>> time now 7:09. we're learning more information a

up, a "bloomberg west" special featuring the ceo of dropbox. bubble has popped. ♪ hii'm here to tell homeowners that are sixty-two and older about a great way to live a better retirement... it's called a reverse mortgage. call right now to receive your free dvd and booklet with no obligation. it answers questions like... how a reverse mortgage works, how much you qualify for, the ways to receive your money... and more. plus, when you call now, you'll get this magnifier with led light absolutely free! when you call the experts at one reverse mortgage today, you'll learn the benefits of a government-insured reverse mortgage. it will eliminate your monthly mortgage payments and give you tax-free cash from the equity in your home and here's the best part... you still own your home. take control of your retirement today! david: it is 2:00 p.m. in new york, 7:00 p.m. in london and 2:00 a.m. in hong kong. lisa: welcome to "bloomberg markets." david: here is what we are watching this hour. markets looking to close out the week on a high note, strugglin

. >>> dropbox is rolling out a new way for people to share photos and video. share files directly from messenger. drop box says you'll need both the messenger and the dropbox apps on your phone. then you can tap the more button and start sharing with friends without having to use links. facebook says the feature is rolling out gradually so not everyone will have it right away. >>> facebook taking another step in its effort to keep users on the site a little bit longer. as if we're not there long enough. ticketmaster will start selling tickets through facebook and its mobile app before the end of the month. it hopes to provide a more seamless purchase experience and of course sell more tickets. >>> comin up on mornings on 2 the 9, tomorrow a humongous day for the golden state warriors as they chase the streak, trying to break the nba record. draymond green says he wants to help one lucky family be there to see it in person. >> plus, this car satisfies the need for speed. after the break, we'll introduce you to the world's fastest convertible sports car. >>> the

emily: you are an investor in the companies like uber, dropbox, lyft, spotify.n, these are deals that traditional silicon valley venture capitalists would kill to get into. how do you get in? troy: you know, i think it helps that i am an entrepreneur. i can relate to founders on a ground-level. emily: give me an example of what your secret weapon is as a tech investor. troy: the willingness to drive a mack truck through a cul-de-sac, when i believe in something. and also, i think, empathy. i know what keeps founders up at night. the anxiety of competition, and what's next. and i can relate to it. emily: let's take uber, for example. how did you get into uber? tell me the story. troy: i met an entrepreneur by the name of shervin pishevar. and he said, you know what, i'm thinking about going into venture capital. and the first deal shervin called me about was uber. and at that time, they were only in san francisco. and you know, the first conversation i had with travis, was about -- you know, i'm thinking, the capital expenses around this business of buying, you k

go somewhere like carnegie mellon who willwill tell you computer science majors facebook, google: dropbox and dod. the top graduates from last year's program was offered a job for hundred $80,000. the average salary. they have more flexible authority. they might be able to. parlor title x structure will be struggling with 50 or 60,000. and so it shows you we have to systems approach. >> we have that authority. verizon we have gone down, people who do not want to go make a hundred and $20,000 for the cayman join us people don't want to do those kinds of things. if you want to do this kind of things are there. the kind of people we really need, we don't have the authority. peggy c across the board. cyber we identify clearly. the world is going to be more like cyber. a cognitive requirement of every career field. if you're in the infantry he will be wired in. the cognitive demands are going to be intense. i think that's the future. for every adolescent every grant. but they are the future for these reforms will be more. >> very applicable to career fields. space upward. could we start of the

for a special line of, dropbox cto, nyc cofounder -- what do they have in common?this is a paid visitation for omega xl. th

you want, you can >> one of the easiest ways is to subscribe to a file service, someplace like a dropboxhotos, something like google photos. >> and if you keep the photos on your phone, back up your important files, just in case. >>> all right, it's almost time to find out if you are the big winner of your ncaa basketball bracket. the final four is tomorrow. villanova, north carolina, oklahoma, and syracuse are all gone fa play. you can see the banners hanging outside the stadium in houston right now. whoever wins tomorrow will face you have in the national championship game come monday night. >>> so, has anybody pranked you yet for april fools' day? in 60 seconds, the most popular tricks going vir alwall street. the nra. they're powerful. they usually get their way. but not with democrat donna edwards. she won't take cash from wall street banks. and when washington insiders wrote a loophole to let the nra donna edwards said 'no' she's fighting to ban assault weapons and putting the safety of our communities first. because to democrat donna edwards, the special interests aren't special.

science, they will tell you the big recruiters american view science majors are facebook, google, dropbox, and dod. five employersig of these young writers. look at the pay scale. the top graduate from last year's argument appear science forram was offered a job $180,000. $178,000ge salary was if they go to work for the nsa, they had more flexible title authorities than we were that the dod. they might be able to pay them $75,000, $80,000. they want to come to dod and be part of our title x structure, we would be struggling to pay them $50,000, $60,000. that's an enormous challenge for us. you and your this world, which shows you how you have to have a systematic approach. in could talk to the people the government that say there are so many authorities don't use. for example, student loans. we have that authority, we don't need to use it because we're not getting the very best people to start with. by the time of gunned down and gotten the people that didn't want to go to google or more often than one way 10 months for , people wantrance to do those kinds of things. we don't need these o

speak to the dropbox ceo and airbnb cto. ♪ alix: it is a 1 p.m. in new york, 6 p.m. in london.: welcome to bloomberg markets. from bloomberg world headquarters in new york, good afternoon. i am scarlet fu. alix: i am alix steel. here is what we are watching. stocks falling after s&p had its biggest jump in a month. policymakers are not racing to raise interest rates. scarlet: jamie dimon pens a 50 page letter and says watch out for your privacy. alix: shares of bed bath & beyond are rebounding today after the retailer beat estimates. a look behind the numbers made investors pause. want to headt, we to the markets desk where julie hyman has been following declines. we had some economic data, but it did not seem to move the needle. julie: it does feel slow. i have had traders say that to me today. a few weeks of low volume trading. all indices are lower. growth areout global back in the four. the risk sentiment is back in the four. financials are the worst performing group today. the outlook for the year is we have seen financials perform better on days when the interest rate inc

at a federal level, state level, local court, those pieces of digital information that's stored on dropbox or icloud or a text message sent back and forth, to review those you have to have a warrant and in a civil matter you have to have a subpoena. that subpoena is served on the individual. ultimately, we have documents on our desks at home. those documents, the police can't kick in your door and go read those documents unless they have a warrant backed upon probable cause. we have a digital set of documents going around with us wherever we go. there is a file cabinet with us, and when we store things, we're doing so not because we're abandoning it, we're storing it because we're wanting to protect it and we're wanting to ensure we keep it and don't want to lose our fourth amendment protections because of this. this legislation would require a warrant or civil subpoena exists in order to read that nformation in -- and a due process occurs. democrats and republicans, we're not able to find resolution on some of the biggest challenges but the fourth amendment and the constitution has to be

>> hundreds of thousands and in dropbox and one drive and google drive. >> expand on what you previously started to answer potential solution with respect to fire walls. >> to provide a better fire wall. think of it a vault door, the doors to a bank. so while you think of the actual locks on the bank deposit boxes as encryption, build fire walls around that. they can with legal process be opened up and go inside it t. like a safety deposit box if we go to a bank with a search warrant the bank uses their key and we drill the lock. i've done that dozens of times. the difference is with encryption, my drill doesn't break the lock. >> thank you, i yield back. >> now, recognize ms. clark for five minutes. >> i thank you mr. chairman and i thank our ranking member. in october of 2014 fbi director comey gave these,s about encryption. we in the fbi will continue to throw every lawful tool we have at this problem. it's costly. it's inefficient and it takes time. we need to fix this problem. it is long past time. we need assistance and cooperation from companies to comply with court orders so crim

. >> thousands of thousands and also in encrypted cloud sites like dropbox and google drive. >> couldu please expand a little bit on what you previously started to answer as potential solutions with respect to firewalls question mark. >> potential solutions is to create a better firewall. think of the safety deposit box, think about is a bank. while you think of the actual locks on these safe-deposit boxes as the encryption, you build firewalls around that. those firewalls can be legal process we opened up and you can go inside but just like a safe-deposit box, if we go to the bank with a search warrant, the back uses their feet. we get the drill and we drill the customers lock and we see what's inside that box. i've done it dozens of times in the course of my career. the differences with encryption, my drill doesn't break the law. >> thank you, i yield back. >> we now recognize mister clark for five minutes. >> i thank you mister chairman and i thankranking member . in october 2014, fbi director comey gave these remarks on encryption before the brookings institute. we in the fbi will

cohen: hundreds of thousands and in dropbox and one drive and google drive. >> expand on what you previouslyrted to answer potential solution with respect to fire walls. capt. cohen: to provide a better fire wall. think of it a vault door, the doors to a bank. so while you think of the actual locks on the bank deposit boxes as encryption, build fire walls around that. those can, with legal process be , opened up, and you can go inside it. like a safety deposit box if we go to a bank with a search warrant the bank uses their key and we drill the lock. i've done that dozens of times. the difference is with encryption, my drill doesn't break the lock. >> thank you, i yield back. >> now, recognize ms. clark for five minutes. >> i thank you mr. chairman and i thank our ranking member. in october of 2014 fbi director comey gave these,s abot -- these remarks about encryption before the brookings institute. we, in the fbi will continue to , throw every lawful tool we have at this problem. it's costly. it's inefficient and it takes time. we need to fix this problem. it is long past time. we need assi

thousands or hundreds of thousands, and increasingly, we're also finding them in cloud sites like dropbox and google onedrive. >> and can you expand on what you previously started to answer, potential solution with respect to firewalls? >> potential solution is to provide a better firewall. think of it as a vault door where the safety deposit box is. think of that as the doors to the bank. so, while you think of the actual locks on the bank deposit boxes as the encryption, you build firewalls around that. those firewalls can with legal process be opened up, you can go inside it. but just like a safety deposit box, if we go to the bank with a search warrant, the bank uses their key. we get a drill and we drill the customer's lock and we see what's inside the safety deposit box. i've done that dozens of times in the course of my career. the difference is with encryption, my drill doesn't break the lock. >> thank you. i yield back. >> gentle lady yields back. i now recognize ms. clarke for five minutes. >> i thank you, mr. chairman, and i thank our ranking member. in october of 2014, fbi dir