emily: do these people still work at greylock? [laughter] david: some of them do, some of them have retired, but not because of that. emily: now john, you're behind some of the newer hits -- dropbox, instagram, tumblr. how do you fill the big shoes of david sze? john: what i've earned is that you probably don't try. and for me, instagram was a good example where i brought it in and people didn't love it. emily: really? john: yeah, i mean, reid wasn't quite sure it would work. you know, it's one of those things -- i really believed in kevin and i had enough affinity for the category and the product that i really wanted to do it. emily: why didn't reid think it would work? john: i don't know. reid said some words and who knows exactly what he meant. he thought it was interesting, but not huge. emily: is there a science to it? is there a formula to finding these things? john: i think with kevin it took a while for me to convince him to raise money, and i chased him for the better part of six months. david: i mean, airbnb is another e

everyone at greylock valued making products. it is characteristic of david to enter the question like, no, it was everybody else. emily: you did find facebook and linkedin. you convinced reid hoffman to join the firm. how did you do that? john: again, it comes down to -- we believe if you come from product and you have that background, there is an authenticity. most people do not remember, but in 2005, when facebook took the investment the valuation was $500 million. which seemed, to most people -- emily: there were just students on it at the time. john: and not that many. it seemed like an insane valuation. i think many people looked at that and said, dave sze and greylock lost their minds. not just from the outside. partners from the inside said this is insane, not what we do. emily: who said that? david: we had partners. one of the characteristics of our partners is we like to disagree. we like to push each other. there were partners saying, this will ruin the firm. this is a huge mistake. emily: facebook is going to ruin the

valley,nding in silicon greylock has backed hit after hit. they have backed 170 public companies, four of them worth more than $10 billion. 1.0, youe on studio have been at the firm how long? guest: 16. john, you put greylock on the map in silicon valley. how did you do that? guest: it was a partnership effort. it is a team effort. 2000's, we were able to connect better to entrepreneurs, to build companies. ofly: john, you were the ceo mozilla. you started at apple? guest: i was doing experiments around the edges. emily: why greylock? i would not want to work in most firms. emily: why not? guest: i like to make things. everyone a greylock valued making products. it is of him to say it was everybody else. emily: he designed facebook and linkedin. you convinced treetop to join the firm. how did you do that? toid: again, it comes down -- we believe if you come from product and have that background , there is an authenticity. most people do not remember, but in 2005, valuation was $500 million. emily: just students on it at the time. a lot of peo

how do you make sure greylock is around for 50 years?d: greylock at 50 years could sometimes get told it is too old or stodgy. the reality is, over 50 years, you cannot continue to survive and thrive unless you make innovative changes. like some of the partners surprising me and saying, we should do facebook, it is the look towards innovation and willingness to change that keeps us going. emily: john lilly, david sze, thank you for joining us. it has been great to have you here. ♪ with xfinity from comcast you can manage your account anytime, anywhere on any device. just sign into my account to pay bills, manage service appointments and find answers to your questions. you can even check your connection status on your phone. now it's easier than ever to manage your account. get started at xfinity.com/myaccount emily: gamers and movie stars and "bloomberg west." we have invaded downtown san diego for comic-con. from "star wars" to zombies and virtual-reality, we have it all. ♪ emily: i'm emily chang and this is a special "bloomberg west" l

i greylock, everybody -- at greylock, everybody values making things. emily: you did find facebook and linkedin. you convinced reid hoffman to join the firm. how did you do that? david: we believe that if you come from product and you have that background and have that network, there is an authenticity trade in 2005, when investment, it seemed small. it was just students. it seemed like an insane valuation. people look like that and said i had lost my mind. even partners inside greylock. john: one of the characteristics of our partnership is that we like to disagree. there were some partners saying that this would ruin the firm. this is a big mistake. do these people still work there? john: some of them do. emily: your behind some of the newer hits. had you fill the shoes of david? john: you don't try. i really believe in kevin. i had enough affinity for the category and product that i really wanted to do it. emily: why didn't read think it would work? -- reid john: i don't know. emily: is there a formula to finding these things? john: airbnb is another

emily: greylock says investors are taking on a lot of risked.y interview with the two partners after the break. is this the computer chip of the future? the latest development out of ibm. can the t-mobile carrier undermine sprint. why legere says it has already happened. ♪ emily: a breakthrough in chip technology. ibm has unveiled a tiny computer chip with four times the power of what is available today. it is in the testing phases. could this be the breakthrough the industry is looking for? i want to bring in cory johnson. is this a game changer? >> the design is interesting. they use some different materials. chips are made entirely of silicon. the way they are made is different than some of the cutting-edge chips out of intel. they are using extreme ultraviolet for the masking, which is the cutting into the chip to let the transistor happen. the test samples have yielded a chip that works at smaller and faster levels. emily: could we see this in every computer? >> first of all, it's not something new. if you go through filings today you can f

joining me today on this edition of "studio 1.0" greylock partners david sze and john lilly.t to have you guys here. thank you so much for doing this. david and john: thank you for having us. emily: david, you've been at the firm, what, like 15 years?

. ♪ emily: greylock is behind some of the biggest successes in tech history. landing in silicon valley, it has backed hit after hit. they have backed 170 public companies, four of them worth more than $10 billion. joining me today on studio 1.0, partners david sze and john lilly. you have been at the firm for 15 years? guest: 16. emily: john, you put greylock on the map in silicon valley. how did you do that?

greylock partners is behind some of tech's biggest names.ock may have started as a small boston-based firm, but it has created hit after hit after arriving in silicon valley. >> i think we are asking to take on a lot a risk. i think there is a lot of money in the system. i think there is a lot of optimism that is causing pricing to be higher and expectations to be higher and we are asking to take higher risks probably since the 1999-2000 timeframe. mobile is a fundamental shift thirdis probably in the quarter. you can see amalie's full interview with david d and john lilly -- you can see emily's full interview with david sze and john lilly later today. greek currency has emerged again. we are going to hear from one of the most colorful ceos in the country, john ledger, as his company continues to close the gap with competitors. that and much more coming up. meanwhile, stocks bounced back in china after losing more than a third of their value in less than a month. 5.5%hanghai index up today. bank managing director nick along was on "market ma

valley,nding in silicon greylock has backed hit after hit.y have backed 170 public companies, four of them worth more than $10 billion. 1.0,ng me on studio

joining me today on this edition of studio 1.0, greylock partners. david, you've been at the firm

greylock opened its doors 50 years ago but since landing in silicon valley, it has produced hit after produced 170 now public companies four of them worth , more than $10 billion. joining me today on studio 1.0, partners david sze and john lilly. so great to have you here, thanks for being with us. you have been at fi

the greylock ceo hans humes was there recently. he will give us his thoughts when the bloomberg market day continues in a moment. ♪ >> wednesday at the senate hearing -- shot from is a live the briefing room. that is the energy secretary, defending the iran deal. the deal between iran and world powers. , hee were heading to break said the administration from mantra that this deal is not based on trust, but verification -- if there are any other headlines that come out of this briefing, we will of course bring them to you and get them on the air as soon as possible. let's go to julie hyman with a look at the markets. looking at some of the biggest movers in today's session, starting with cruise line world caribbean. caribbean is trading at a record after it reported earnings and raised its forecast full-year earnings per share. current seas brought beneficial effects, something we have not heard much of these days. the shares are up better than a .5%, royal caribbean also citing better business in the caribbean and china. other crui

the ceo of greylock capital. he was recently in tehran. he sent us pictures.n went on nature of their. he had interesting things to tell us about whether the irani and debt market is ready right now. we will look at that, coming up next. in the: mark crumpton next hour of bloomberg market day. cruise's next -- tom star power comes under scrutiny as the latest mission: impossible film hits theaters. ♪ scarlet: this weekend, going rogue has a whole new meaning. >> can you open the door? the plane.ing >> can you open the door? maybe. >> open the door! years old and still engaging in risky business, but he may face his toughest test yet as the new mission: impossible its theaters. joining me, my guest who met up with tom cruise at the world premiere of "rogue nation." give us your unvarnished opinion. i know you just met with tom cruise. is it goodbye mission: impossible standards or any movie standards? guest: yes, all of the above. i think it may be the best in the series. sharks script. tom cruise is at the top of his ite here and i got to watch twice in vienna

emily: greylock is not an uber investor.id, look, we have not seen the financials in a long time. it is not sure where they would put their night -- there money now. john lilly said he thinks this can be a $500 billion company. thatspite the lawsuits luber is facing around the world and some of the challenges, regulatory challenges that uber is running into, they still think it is a hugely innovative company it is just not where they would put their dollars now because they want to get more for their money. alix: be sure to check emily's .nterview wit chinese stocks may have done a slight reprieve today, but they still face some of the major meltdown cap what does that mean for u.s. markets? ♪ alix: chinese stocks reverse course today after losing more than a third of their value in less than a month. i want to know what all this volatility means for u.s. stocks. explain what jonathan phillips said in his note. main he looked at the sectors of the s&p 500 and how they correlate to chinese stocks. companies,ell technology com

and i have the ceo of greylock capital partners with me. he understands how to invest in greece. matt: and he is kind of canadian. stephanie: talk is -- talk us through what this vote really means. >> first thing i have to say is that it caught almost all of us outside greece by surprise. our sense was that the yes vote may have had a margin in favor. regardless, it was going to be a close vote. to have this kind of a landslide come in for the no to back tsipras caught us by surprise and puts us in uncharted territory. we do not know where it is going. matt: it is interesting this took you by surprise, because you are as close as any non- greek american to be as an insider here. you are the only american in talks with greek creditors. you have owned various great debt. -- greek debt. you have been playing this the entire crisis. >> the one thing about it is unlike 2011 and 2012, the private sector is not at the table. this is an official negotiation. the imf. the institutions. that is part of the problem. when we were negotiating with the greeks, we were negotiating with the eu i

one of my partners at greylock wrote a piece of a notion of a network base work force that has flexibilityve to protect the workers. all those things are extremely important. a lot of considerations have to go into it. your call is right. >> a follow-up on that one. one more thing. i want to go to the point how important the slowdown in china might be for apple and other players in silicon valley. when markets are good it's easy for people to get excited about new ideas. do you see any signs as froth comes out of the market it will force people to pull in their horns? >> i haven't seen any signs yet. when there is a general perception of threat or lack of growth people get much more short term in their thinking. the fortunate thing is people see such possibilities with some of the new areas in technology that as far as i can tell investment is increasing on building these technologies. that's a silicon valley perspective. in silicon valley it's still full speed ahead. >> if you are an investor in air bnb, what do you think the next big marketplace could be that could disrupt an industry th