i think we are still at peak vc. not happy with the fund i was constituting in terms of the investor rates, so i took a minute to reconstitute it and build a smaller, more focused fund. i think the majority of the companies i will invest in are built around relationships i have built over the last 10 years. emily: if we are at peak vc, and goldman sachs says there is a -- is money penned up to invest in technology how do you break , in? bill: hopefully i do not have to break in hopefully i am in , already to some degree. with a smaller fund i have the , advantage to be very selective in the people i hire. selectivity is your ally. emily: you do not often see lone wolves in vc. you are doing this in san diego. you are not just investing in health and biotech, but tech proper, which is competitive. how do you think you can step up? bill: i have lived in san diego for years. i exist in the cloud. coming out of san francisco, the idea we are limited by geography is crazy. one fund is the best returning fund of all time a

emily: you don't often see lone wolves in vc.ng this from san diego where you live and you are not just investing in health and biotech, but tech, which is super competitive. how do you think you can step up? bill: i lived in san diego for years. i exist in the cloud. especially coming out of san francisco, the idea we are limited by geography is kind of crazy. its probably the best returning fund of all time. he didn't live in san francisco. emily: you don't necessarily plan to do it all by yourself? bill: no, not forever. emily: where are you placing your bets? what is exciting to you? bill: more readily in my mind available are getting excess attention, ai machine learning, vr, etc. even health care has become a trendy area for investment, which means subject of over funding. that leaves parts of the market available, whether other applications of tech and i have been spending a lot of time looking at the food chain. emily: interesting you bring that up because we have been talking a lot about an investment and i'm sure you sa

vc. we are slightly ahead of them. you take out the two biggest funds in our study that we looked at, you can around the same number. the difference is imperceptible. i think they are similar. i think looking at the broader vc investment picture in the u.s., you have 45% women in the u.s. industry, versus 27% in the u.k. we fall behind the u.s. on that front as well. caroline: and therefore, when you are looking at what can be done to raise decision-makers to be more balanced, whether on a female basis, and ethnic basis, hetero or homosexual as well, how will you make diversity something that is prioritizing -- prioritized? >> there was no data a year ago on what the ratio was in the u.k. industry. the first call was to do the study and understand what gender looks like in the u.k. that has given us a more clear picture and a clear target as well. we have a 20% target of senior women in investment rules by 2020. that is really a call to arms for the industry. at diversity vc, we have four different areas we are investi

caroline: $2 billion in vc funding went to robotics companies last year.hat is 20% more than 2015. much of it went to californian. $143 million to massachusetts. but the number of boston companies is growing, and that is attracting sponsors and partners from massachusetts and outside the state. >> a lot of players like ge and panasonic are looking for investment opportunities or acquisition opportunities, technology scouting, where robotics is going, where the innovators are going now. -- r and d.s rmb for mass robotics, the technology is reaching new heights. for more on this operation and a greater outlook for the robotics industry in boston and beyond we , are joined by the director of computer science and of course, mass robotics board member. you were here helping set this place up. tell us about what the real mission is, how much funding and thriving do you want? daniela: the mission of mass robotics is to convene student talent, entrepreneurs, the vc's and the robotics industry in massachusetts. this has been a long dream of ours. mass robotics star

what about your previous role as a vc?t the ecosystem of money being built here in massachusetts? is it starting to build, does it need to? are you waiting for international money to flow in? >> i think it has been here for some time. it has been here in the i.t. and tech sector, and then with biotech right now, it is heavy on the biotech side. but there are different types. there are earlier stage companies like atlas or polaris. they tried to foster and initiate companies. smaller dollars, and then as they get bigger, you need bigger investors. you need fidelity's of the world to carry you to the next step. it is here, it is just a matter of selecting the right ideas and cultivating them. the ecosystem has been good at that. caroline: you went public. does it do these long-term bets that biotech, bluebird bio, in its nature, does? >> i'm sure you know the quote, you get the investors you deserve. it the company that cultivated itself with a long-term vision. it is a constant struggle as a ceo. one of the things i don't l

meanwhile, great talent and a good vc community.we love investing in chicago companies, but we have investments across the country. what we are really unique on is some of the sector focus that we have. we focus on technology companies that are at the intersection of real estate, finance, insurance, and home services. we look at companies often outside of those industries and bring them inside the industry. while we love investing in chicago companies, we go all over. one of the things that is unique about us is that as a venture firm, we're focused on helping to bring customers to our companies. probably no other firm like that. we have created a network of about 400 or so executives within these industries that we focus on, people who understand that technology and innovation is something they need to focus on to create their own competitive advantages. there is a fund called the moderne passport that creates a bridge, an industry immersion program to connect those companies with executives. emily: what does silicon valley have to

come up, is the vc market oversaturated? we catch up with fred wilson next.f you like bloomberg news, check us out on the radio. you can listen on the bloomberg radio, bloomberg.com, and in the u.s., on sirius xm. this is bloomberg. ♪ w emily: in this weeks wrote -- in this week's revolving door biz , stone is rejoining twitter after he left and two months after he sold his start up to pinterest. he said he will be focusing on company culture and will not replace another executive. we spoke to stone last thought over and asked about the at -- the recent challenges at twitter. biz: i don't follow the rig up and downs. i don't look at the stop on a quarterly basis. i think great leadership thinks in terms of decades, not quarters. jack is -- in the grand scheme of things, jack has just got the job. people are like, he has already had it for a year. a year. that's nothing. emily: shares of twitter jumped tuesday after the announcement that we are among their video partners. union square ventures remains bullish on the stock and we caught up with fred wilson wed

this would create £6 billion, vc, which would create £6 billion, vc, which would be ring fenced for thehave to be honest with everyone in the country. we all know that the nhs and social care are in crisis. we have thousands of people waiting for operations, people with mental health problems unable to be seen. we know the problem is fundamentally about money. politicians make various promises about the nhs. we wa nt various promises about the nhs. we want to have the best health and social care service for our families for the rest of lives, be allowed pay for it. it is the equivalent of one pint of beer a week for everyone. that will give us security and dignity in old age. that is a deal which the british people will be ready to accept. a big policy via. not the only about. also, the ukip leader has also been out and about. they had the disastrous time of it in the local elections. losing all three of seats. he said people will come back to the party in d roves if will come back to the party in droves if the prime minister feels to deliver on our departure from the european union. we

. >> we do not fund ourselves, but we work with a lot of local vc's and know whichne are investing inobotics. caroline: newly $1 billion of investment went to companies in california. $123 million to massachusetts, but the number of boston companies is growing, and that is attracting sponsors and partners from massachusetts and outside the state. >> they are looking for investment opportunities or acquisition opportunities, wherever robotics is going, where the innovators are going now. ,aroline: four mass robotics the technology is reaching new heights. for more on this operation and a greater outlook in the industry and beyond, we are joined by the director of computer science and of course, mass robotics board member. youerhere helping set this place up. tell us what the real misons here. of mass robotics is to convene student talent, entrepreneurs, the vc's and the robotics industry in .assachusetts mass robotics started as a grassroots effort. i have known the founders for many years, and finally, our dream has come to fruition. what we really want -- our big dream is to have mas

they are vc-related. we look at growth in china. we have private capital.ney into small and medium-size companies in china and help them grow. cows,n farms, milk mining, manufacturing, there are so many things. business is waiting for private capital to invest. people are too focused into internet-related stuff, which is something we need to cure. let's latch onto valuations. if we can bring up a chart, # 7569. it shows how valuation and china is below average right now. what do you make of the valuations? company,e look at a the file you wish and is calculating in the traditional way you learn from that this is school. -- from the business school. they comes down to negotiating skill, your personal relationship with the founder, that matters. the number is just the beginning. not too long ago the lucrative deals, the bigger deals, were only assessable to local companies. that.disagree with we have been investing in china for 17 years. we have our network. if we were to travel to a third tear city in china, nobody cares about the companies there. we talk to

market is the vc oversaturated. fred: it's hard for me to know. don't know what the demand side of that equation is. it's clear to me that there is probably more good investment opportunities in the venture capital industry then a decade ago. we can order more capital. these things go up and down in cycles and we could be at a place in the cycle with there is more supply of capital than there is demand. we are on an upward sloping curve on both. i don't know. it's hard for me to say. more supplyere is the demand, what are the implications? fred: prices go up. returns go down. sector andves the there is more demand and supply and prices go down and returns go up. that's the evident flow of capital markets and the pc business. watch thenow you bloomberg started from her the tracks the health environment for private tech companies. it's down from its peak in 2015. one of the negative signs and positive signs you seen this year? lot of sobriety in a number of sectors that is been very frothy in the past. we have new sectors that are now frothy. they w

then witnesses capture an atv police chase through d vc.and save, a young girl identified after being dropped off at a montgomery county hospital. the news at six >> all right. we're go to start with a weather alert four. apparently a tornado warning has just gone into effect for parts of our viewing area. let's get right to sue palka for the very latest on this. we've seen just in the last hour or so some severe storms start to develop and just seconds ago we got a tornado warning. we'll go straight to radar. this is for clark, frederick county, virginia and jefferson. that is in, i believe, west virginia, the pan handle of west virginia h this is going to go until 6:30. no tornado has been spotted, but radar was indicating that there was some rotation so we pay attention to that. we dwo know that just a little while ago this particular storm produced hail to the size of knuckles. the storm is close to barryville area or million wood pike. it's moving southeast at about 20 miles epa hour. let me put it p in motion for you, but before i do

. $500e: softbank leading a million investment in improbable world and one of the largest vc deals in the last decade. virtualle world creates scenarios for gaming and massive scale simulation. and others ares also committing new funds. today despiteng the higher cost of fuel, imported oil, the cost will average $55 a barrel, up from $47.50 in the previous timeframe. tepco says it hopes to fire up a nuclear plant within two years. hong kong securities regulator is questioned the ownership structure of the city's dominant free to air broadcaster, saying tvb may be tycoony a chinese media rather than a hong kong resident as required by law. rishaad: it is quite something. they were doing their job, one day? it is incredible what they found. >> what they found is that the holding company that holds tvb is not controlled by the chairman, the local businessman. rishaad: it has to be somebody from hong kong. >> a hong kong broadcaster can only be owned by a hong kong resident. what they found it is this famous media tycoon from china, who we knew had a stake, which include nonvoting shares,

emily: $100 billion to invest in tech, how does this change the competition for you as a vc and couldlead to another bubble? are there enough companies to invest that money? keith: they are investing in mostly growth opportunities. we are a venture capital firm. we take series a risks, sometimes series b. it does not affect us. it may be a good source of capital for other companies. rocket lab made launch a satellite and deliver low-cost satellites as efficiently as flying a plane. those companies need to raise more money. emily: you don't think this could lead to another bubble in the making? keith: it could. too much capital chasing very few great ideas and awesome founders does create distortion. we first saw that in 2014 and 2015. whereas in 2016 and 2017 the markets stabilized. there are only so many great founders. building a country from beginning to -- a scalable business, that is a heroic exercise. once you have figured the equation, there are many more people to run the machine. but building a machine is a rarefied skill. i don't think the process is good for anybody. emily:

caroline: how much are we seeing the vc community expand in boston?y feel that silicon valley is a big brother. are you seeing the seas, or from their? is there a buildup of money? >> in traditional technology, silicon valley is the big rather. it might be the grandfather in many ways. in biotech, this is the center of excellence. you see venture capitalists from the bay area swarm here. we've got the three ingredients. we've got the universities. we've got big pharma. that builds up clusters of entrepreneurs. we've got radically decreasing costs. that mea iyou are a young researeror these companies and you've got an idea, it doesn't require $50 million to see if it works. caroline: is international money coming in? >> this gene editing technology, all three of the big crisper companies all have their r&d centers in cambridge. that is because you have that ustering effect going on. caroline: when you are looking at the investments you make, where are you looking in term of exits? to receive see money getting refueled back into the system? are angels e

we caught up with him at the conference and asked if the vc market is oversaturated. >> it is hard forto know, because i don't know what the demand side of the equation is. it is clear to me that there is probably an order of magnitude more good investment opportunities in the venture capital industry than there was a decade ago, so that would suggest that we could manage an order of magnitude more capital, but obviously these things go up and down in cycles, and we could be at a place when there is more life capital than demand. but i think we are in an upward slope on both. it is hard to say. emily: if there is more supply than demand, what are the implications? >> i think that means prices go up, returns are down, and then capital leads the sector, and then there is more demand than supply. prices go down and returns go up. that is the ebb and flow of the capital markets and the venture capital business. emily: i know you watch the barometer that tracks the health business environment for private tech companies. it is down from the peak in 2015. what are the negative signs you see t

there are more than 5,000 corporate deals and more than $100 billion invested in startups by corporate vcsitch book. while they have their total r & d arms there is something about the innovative ideas of startups that is hard to recreate internally. you can find out more about the big trend on cnbc.com. melissa? >> thank you so much. julia boorstin. pe have about three hours until the "closing bell" here. stocks are higher across the board. on track for the best day for the month of may. our final trades, next. the power of innovative thinking. the power of 100 of the world's top companies. the power of an etf. the power of qqq. the thinking we put in, clients get out. power your client's portfolio at powershares.com/qqq. before investing, consider the fund's investment objectives, risks, charges and expenses. call 800-983-0903 for the prospectus containing this information. read it carefully. distributed by invesco distributors inc. containing this information. read it carefully. i count on my dell small for tech advice. with one phone call, i get products that suit my needs and i get ba

caroline: how much are we seeing the vc community expanding?ilicon vall ia bigger brother. are you seeing them come over, or is there a building up on money? jon: in traditional technology, silicon valley is the big brother. it might be the grandfather in many ways. in biotech, this is the center. you see venture capitalists from the y ea swarming here from around the country because we have the three ingredients. we have the universities that bring the students, you have big pharma with a cluster of entrepreneurs, and you have radically decreasing pricing costs of building a company in this space. that means if you are a young researcher at one of these companies and you have an idea, it does not require a million dollars to see if it works. caroline: do you see international money coming in? doni: there is definitely international money. one of the best examples of the clustering is this editing technology. all three of the gene crisper companies have their rmb centers cambridge. that is because you have that clustering effect going on. carol

fund ourselves, but we work with a lot of the local --s -- a lot of the local bc a lot of the local vc's are working in robotics. fundingy $1 billion of when two companies in california last year. 103 million dollars to companies in massachusetts, but the massachusetts company is growing, attracting sponsors and partners from massachusetts and outside the state. >> a lot of partners are looking for investment opportunities or , where thes innovators are focusing now. robotics, the technology is reaching new heights. >> joining us now from boston is bloomberg's caroline hyde. details of this massive international cyber attack today, ran somewhere -- ransomware at the center of the attack. can you explain to us what it is and the scale of the attack? i've read reports of more than 70 countrieinlved. caroline: 74 is the latest i've heard. 74 countries, 45,000 attacks. ransoms as though malware is when the computer is basically locked. there are many reports this has gone through the microsoft operating system, which has not been substantiated by bloomberg, but overall, the computer is locke

you see a tremendous amount of money pouring into markets, whether vc, whether foreign firms are localere is too much money. that is why when a new concept emerges like live streaming for example, like the shared the economy, then you see not like dozens of companies being created. it is like hundreds of companies being created, and in theory these companies will not be successful, but everybody win ever they have a concept they think will work, they don't want to miss this there was a lot of money flowing into creating new companies and you businesses. and so the result is that huge competition in terms of market share, in terms of you have to burn cash to get bigger, so a lot of competition is irrational in a way. caroline: that was the sina chairman with the tom mackenzie. now coming up, t-mobile came out with earnings this week, picking up more subscribers to gain ground on rivals like at&t. we will speak with ceo john legere next. if you like bloomberg news, check us out on the radio. you can listen on the bloomberg radio app, bloomberg.com, and in the u.s. on sirius xm. this is b

you see the top vcs talk about because they have less regulatory barriers they can move faster on thets. mark cuban said that we need to remove the red tape to keep up. a big race to watch. >> are you expecting more cross border m&a. them coming here or us going through? >> i think it's a bright future for m&a like in europe and south africa. it's a global landscape we are looking at. if you're looking domestically, you're missing out. >> i have made a list of the trends that code has been covering for years that are really coming home for the market. >> yeah. >> cloud, data. mobility. ai machine learning. cord cutting. of all of those that i mentioned is there one that stands far and away ahead? >> the biggest one for us is ai. is ai. the reason you heard sundar from google say they're no longer a mobile first company, ai drives amazon and drives the pricing mechanisms for priceline and netflix. ai and what ai can do is going to provide that basis for the acceleration. >> bob, it's so great to have you here to help us out. bob peck joining us hered a code. a quick programming note, c