now, when eugene kleiner and i, the late eugene kleiner, my dear friend -- >> your co-founder of kleiner perkins. >> co-founder. when we started kleiner perkins, we tried to raise $10 million and we couldn't. we raised $8 million, and that was the largest venture capital fund in the world. everybody said, "what are you going to do with it?" well, it turned out, we had to start our own companies and so forth to make it work, but that's a different story. now, we have, i don't think anybody knows how many hundreds of billions of dollars in venture capital. the amount is immense, and that is causing the boom in san francisco. within a mile of here, there are probably 1,000 startups. >> in your opinion, these are good things. >> no, not necessarily. >> why not? >> why not? because these startups -- students are dropping out of mit in their junior year to go to san francisco and do a startup, but they're not starting companies. they're writing software applications, which are products. there's a huge difference between a product and a company. their only route to liquidity is to sell it to go

now, when eugene kleiner and i, the late eugene kleiner, my dear friend -- >> your co-founder of kleiner perkins. >> co-founder. when we started kleiner perkins, we tried to raise $10 million and we couldn't. we raised $8 million, and that was the largest venture capital fund in the world. everybody said, "what are you going to do with it?" well, it turned out, we had to start our own companies and so forth to make it work, but that's a different story. now, we have, i don't think anybody knows how many hundreds of billions of dollars in venture capital. the amount is immense, and that is causing the boom in san francisco. within a mile of here, there are probably 1,000 startups. >> in your opinion, these are good things. >> no, not necessarily. >> why not? >> why not? because these startups -- students are dropping out of mit in their junior year to go to san francisco and do a startup, but they're not starting companies. they're writing software applications, which are products. there's a huge difference between a product and a company. their only route to liquidity is to sell it to go

i,, when eugene kleiner and the late eugene kleiner, my dear friend. and cofounder. when we started kleiner perkins, we tried to raise $10 million couldn't. we raised 8 million, and that was the largest venture capital world. the and everybody said what are you going to do with it? turned out we had to start our own companies to make it work, but that's a different story. now we have, i don't think knows how many hundreds of billions of dollars in venture capital. immense.t is and that is causing the boom in san francisco. >> okay. >> within a mile of here there 1,000 --bly >> but in your opinion these are good things? >> no, not necessarily. >> why not? >> why no., because these startups and students are of m.i.t. in their junior year to come to san francisco and do a startup. but they're not starting companies. they're writing software which arens, products. a huge difference. a company.roduct and and their only route to liquidity is to sell it to google, apple, whatever. will fail. them and that's fine because there's so much money around, they can again andhen fa