. >> you vc? yeah, you vc.ou vietcong. >> the rule of thumb was not to trust anybody, regardless of sex or age. >> what is going on? >> enemy fire opens up from surrounding villages. >> the vietcong has opened fire. we're now firing back. >> if the americans got a sniper fire from a village, they didn't send a squad in to find the sniper and kill him. they called for artillery and air strikes and blew the whole hamlet away. the united states was killing 25,000 civilians a year. we were blowing up and burning down this country we were supposed to be saving. >> success continues to be elusive in any meaningful way, and johnson keeps being told i need more troops. >> i have today ordered to vietnam certain forces which will raise our fighting strength from 75,000 to 125,000 men, almost immediately. this will make it necessary to raise the monthly draft call from 17,000 to 35,000 per month. this is the most agonizing and the most painful duty of your president. >> it's difficult to understand. why would you take th

are you going to vc guys? is it different from, say, a high-tech company?chnology to our advantage, but at the end of the day, it's just shoes. but there are a lot of vcs who are interested in branding consumer products, and that's who we're speaking with. liz: if you're paying $5-$600 -- how much is the markup at a department store when i walk into macy's, gucci, niemans? >> it's shocking. it's 2 to 2.5 times above what that department store bought it from that brand. that's totally cut out in the our model. liz: what is your highest priced shoe? >> $449. liz: and your lowest price? >> $349. liz: and they're all italian leather? >> all italian leather, it's a very italian shoe. they're hot. liz: i once read that some of the lower end companies were actually getting the same here that higher -- cashmere that higher end companies were using, just going through a different route. now, is this the same leather that's being used in some of the fanciest shoe company leather? >> we definitely use some of the same leathers, but there are different grades. there's

liz: oh, and i bet it helps with the vc interviews, and you say, yeah, but, you're a debate team guy.what's your weissman score, adam? >> my which? liz: see in you don't watch silicon valley, do you? >> no, i don't. i don't have time to watch any tv, unfortunately. liz: because you're a start-up guy. adam, good luck. we'll be watching hipmunk and your team. thanks so much. >> thank you. liz: adam goldstein, and the company is called hipmunk. >>> closing bell is in 15 minutes. this horse could become the first triple crown winner in 36 years. california chrome is the name. if it does win the belmont stakes tomorrow, it could spark a revival in the horse racing business in the u.s. after years of decline. a fox business, collusive with the -- exclusion with the man who could profit handsomely. the president of the breeders cup, craig fravel, the high stakes business of thoroughbred racing. you used to sleep like a champ - then boom... what happened? life happened. stress. fun. bad habits. kids. kids. kids. now what? not milk. not sheep. not that. let's think smarter. let's get some scie

. >> you guys ranked third in terms of number of exits for a vc company from 2013. it be in 2014? >> we have a lot of good companies in the queue. the m&a climate, you can never guess what happens. a little more tricky right now. you have to have better earnings capabilities and be more predictable. that will be a little bit slower. we still hope we are going to have a banner year. last year we had seven companies that exited north of $1 billion. i don't know if we can repeat that. baucas the latest ipo. -- bach is the latest ipo. >> there will be a significant amount of m&a. ipo's look at historical per year, this year was tracking a bit ahead of what is normal. 30 to 40 companies normally go public every year. i think the markets have pushed back a bit. the bar is higher for that ipo. some companies will be looking to m&a exit when it is tougher to get through that ipo hurdle. >> that with index ventures general partner. the season four finale of "game of thrones" is this weekend. we speak with the show's director about the difficulties of shooting with thousands o

you talk to major investments on the vc side as well as venture backed companies. what was the sentiment out west when they look at the market and see some of these high fliers getting some wind taken out of their sails? >> first of all, a terrific summit, and to give you a sense for why we hosted it, most people don't realize this, but three of the five largest market cap companies in this country apple, microsoft, going's, our venture backed. 25% of the top 50 market capped companies are venture backed, and over 50% of the companies going public over the last five years are venture backed. so there's a tremendous amount of innovation going on, in not only silicon valley but all areas where innovation takes place around the world and those technologies will be quite disrupted to existing technologies and industries. >> apple, of course, calls itself the largest start-up around. wondering, when you look at public markets here, nasdaq saw a steep sell-off from march and over a period of six weeks but it's valued at 22 times earnings. i'm wondering, is there talk in

you get the attention of someone like him? >> i think the most important thing -- i tell entrepreneurs, spend less time thinking about how to impress vcsd more time making the business so formidable they can't ignore you. if you can build a great business, they'll find you. >> is that what happened in your case, they literally called you? >> no, they didn't call me, but initially when we reached out to them, they saw the metrics, this is incredible and moved very quickly at that point. >> parker, one of the things we have seen over the past few weeks and months is the box s-1, and the amount they spend on sales and marketing compared to revenue. you're talking about using this funding to build up your sales force. how do you think about how much to spend on that versus how much to watch -- how much your revenue's growing in order to have your business healthy? >> so we see a lot of green field opportunity in this market. there's nothing out there for companies less than a thousand employees to sort of solve this administrative headache that no one likes to deal with around all the paperwork and the administrative costs of the different

you. >> so the bear case here is that it's this overstretched vc driven darling.he bull case says real company, real cash flow, catching on in every major city. which is it? >> well, every major city all around the world, in 140 cities now. they're still continuing to get involved. this latest round, it's 1.2 billion, so now the company overall is way up there. 18.2 they say going to be 18.4 billion. they are still getting vcs to jump on board. kleiner perkins now getting in. this is a big hope in silicon valley, also a company google has put its own money into, so people see it as live with google which is a good thing. but it's a company that is also facing a lot of haters around the world. most especially regulators on who are not excited about some technology company coming and changing up something that is a key piece of infrastructure. >> but that is if not the biggest overhang. it's fraught with regulatory risk. whatever you think the prospects are, whether you make the case that $17 billion is justified, just filed until a number of major u.s. cities don't

vcs, but not enough of them. very good entrepreneurs. yet can youn triangle in a way that really does throw off other entrepreneurs to create other companies and can you keep them there there? the real issue is what happened is several companies stay there had versus moving up to silicon valley, an interesting trend to watch and a lovely place to live. i was going to put on my sunglasses, but it's -- i will take them off. but i mean, it's a really nice place to live. the rents are cheaper and now enough tech noll gists down there. and one of the -- >> the recode conference just south of l.a., too. >> yeah. absolutely. beautiful, are you kidding? not going to have it up in freezing -- we have one coming up here. one of the things, one of the quotes i like best in the piece, they have engineers with taste. that's really interesting idea. engineers with taste. engineers not just engineers. >> almost steve jobsian. kara, thank you so much. >> no problem. >> we will talk to you very soon. >> thanks. >> the meantime, forget about the bay. it's all about t

. >> reporter: the bill hopes to raise -- private equity, vcs, hedge funds, all looking to cash in on the booming industry. guys, back to youmuch. rocky mountain high. >>> google may be in the driver's seat for mass-produced driverless cars, but one start-up is beating google to a different game. converting your car into a driverless one, at least some new audis. liz gaines joins us, very cool story. tell us about cruise. >> it's a tiny start-up. they're taking an incremental approach. there's a lot of reason people agree that they're a good idea. they don't make stupid human errors. they don't get angry. they don't get tired. sure there's problems with giving control over to computer, but a lot of people think it's a good idea. all the automakers and sgoogle are working on long-term plans, but one start-up, this cruise, is working on short-term plan to, to an advanced stage of autopilot on specially approved freeways. cruise has gone and predriven them, so they have very detailed maps, so the cars can handle them, stay in their lean, brake and accelerate based on what the cars are doing around them. >> we're talking about

vcs 1995 all over again, companies writing billion dollar checks. walia is living it every day. youory very well. back in 2000, it was fine until the nasdaq fell 74%. what will happen this time? >> i would frame this time as rational exuberance versus irrational so it's different. recently, id around think there is a justification for a lot of these things. tech companies are driven by three things -- growth, cash flows, and sustainable competitive advantage. if you can justify two of those engines come you do well. is the company set expectations of growth-they cannot deliver, they get pummeled like twitter or box and a lot of companies and that puts stress. in anies like uber are different field where they are profitable and delivering growth and the expectations are high. when you look at younger companies, you have seen $65 million checks written for companies less than one year old. that's were you start to worry about there is a lot of competition but people are not betting on these. >> does the optimism spread to other sectors? >> i think some of the claims are overblown. the

vc firms. joining us is scott cooper with andreessen horowitz. we saw you in person just a couple weeks back.y, now, it's day two of the gopro ipo or a day after the go pro ipo. and when you think about that company. is that a hardware company, a software company? and you know, i sort of said, is it the next walkman or is it the next, i don't know, what would be the next great thing. the walkman is something you probably wouldn't think of as great. they had a nice ten-year run. what is it? >> i think it's actually embl emblematic of a resurgence of hardware wii seeing generally out here in silicon valley. and in the gopro case, they've taken a piece of hardware, and then this idea of, can we build a community arenound it and essentially monetize the community. so it's a different business model in many respects. but the thing we're seeing outside of gopro is a combination of hardware and software, where the software is differentiation for these products. so think about occulus. the parts that occulus is building are really just mobile phone parts, is what the hardware is, but the intelligence

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vc firms. joining us is jeff lewis a partner at founders fund. it's great to see youe here. >> you know, we've come to you from time to time just to get a feel for what's happening in the valley. and david einhorn and other big investors have raised concerns about whether or not there is another tech bubble that's building. hat do you think about that? >> well, i do think that we are at the -- we are at a stage where there is -- there are perhaps some early warning signs. so, one of the interesting dynamics with the valuations for a lot of these tech companies is, nobody actually knows what the company should be valued at. a lot of the comps actually aren't very good. these companies are often creating entirely new markets. and then, incidentally, end up disrupting existing players. and i think that typically, private investors are more willing to buy into a future oriented narrative of what the company could be worth down the road. but, we are now starting to see the public markets get involved, obviously gopro last week. a big part of the story there is a future bus

. >> when you say enable people, vc money. about do you see that as an enabler, or a predator? >> it depends on the business you are starting. i took the route and it worked out for me and shutterstock not to take venture capital, but it depends how capital-intensive your business is. >> does it break your heart when you see a gray business, great great-- a great business, ideas, blood, sweat, tears, all guy the pockets of a vc that basically picked off an entrepreneur? >> if you can avoid them, you will be better off in the long run, but it depends on how much capital you need to start. >> you come into contact with a lot of small businesses, entrepreneurs, creative people. what automates them -- are they chasing riches, or are they motivated by something else? are the mostt successful are motivated by creating things. if you are in it for some short-term financial gain, you have to be really likely -- lucky because there's a lot of failing and evolve. >> may be failing is not such a bad thing. >> it is not. >> when people like you say you have to take risks and go for it, are