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tv   Bloomberg West  Bloomberg  April 8, 2016 6:00pm-7:01pm EDT

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escaped the double bombing at the airport. if confirmed, it would mean he played a key role in both attacks carried out by an islamic state cell in paris and brussels. officials are putting then extradition of another suspect on hold. 4e fled to belgium after the paris attacks. officials blame the delay on an ongoing investigation into a dead pli police raid into a brussels neighborhood the day before his arrest. bernie sanders has closed the gap with hillary clinton ahead of new york's primary to 18 points in likely voters. this after trailing her by 30 points in march. mrs. clinton is at 56%, senator sanders at 38%. for republicans, donald trump leads ted cruz, 56% to 22%. john kasich has 17%. in washington, senior lawmakers on the senate intelligence committee are pushing a draft bill that would prohibit
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unbreakable encryption. it also requires companies to help government access data on devices with a warrant. the draft is reportedly being finalized but it's unclear when the measure will be introduced. global news 24 hours a day, powered by our 2,400 journalists in more than 150 news bureaus. ♪ emily: i'm emily chang, welcome to our one-hour special here on "bloomberg west," unicorns, bubble or boom. the numb of unicorns has soared to more than 200 worldwide. these are private companies with a billion-dollar valuation or more. some are starting to wonder if soaring valuations are another bit of financial make believe are unicorns in for a reckoning?
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the market is seeing some correction. some are writing down the value of once-prized startup and the reigning unicorn giants are holding off on going public, wary of a volatile market. we'll talk about these issues this hour, and speak to two of the biggest unicorns around. abnb and dropbox with two of the y.c., s to come out of the big incubator, and who better to help us walk through yc founder.an joining me now is yc president, taking over the reigns from co-founder paul gram. great to have you back here on the show. you guys just took in another big batch of companies , in fact you funded 1,129 companies.
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>> i didn't know the exact number but i assume that's right. emily: that's what i've been told. t's called the harvard for startups, some say it's even harder to get into than harvard. >> our goal isn't to be hard to get into. emily: 44 enterprise companies but the numb of consumer companies about half that. why? >> we don't have really strong feelings about what we want to invest in, we want to look at the smartest founders in the world, whatever they want to start we assume they can call market trends. there was clearly a lot of interest in people starting enterprise companies. emily: and hardware. is hardware a bigger bet? >> not particularly. it's one of many areas where we think people can build new $10 billion companies, it's something we want to support. enterprise, biotech, still believe in consumer.
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one of the great things is you can start great startups in all areas. emily: you have such good visibility into how valuations are trending. startup funding dropped to its lowest level in four years. capitalists want later stage and more mature companies rather than early stage. you guys are investing early and late. what trends are you seing? >> we were worried for the match that just finish. i think we got tricked by the media ourselves that winter was here and these companies were going to struggle and so we advised them to sort of be willing to accept lower offers and take money more quickly. i think we ended up giving bad advice there. at least it was bad in the conservative direction, that was good. but i think the seed valuations are probably different in later stage where there's been a pullback in investors. emily: in response to the question, bubble or boom, are
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all these unicorns really union corms -- unicorns? >> i'd love how to -- i'd love to buy both airbnb and dropbox stock. emily: what about the rest? >> if we look at the basket as a whole, i think they'll outperform the u.s. equity indy cease. i think it makes good tfings to talk about boom or bust but we invest on such a long cycle, we're going to hold the shares for 20 year, these companies will go through multiple up and down cycles. if they're building real long-term value, building a product consumers love and a nice network effect in their business, they'll be worth a lot someday and we'll leave market timing to other people. emily: we talked to the c.e.o. what he hadisten to to say about how important y.c.
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was for there. >> when we came into y.c., we said three months from now, we will decide if we want to continue to work on abnb that should give you an indication of what we thought our chances were. the good news is at the end of three months, we never had that conversation. about thatm thinking conversation to being told, you're the ebay for space. >> without y.c. would you be here? >> it may not be here, if it was it would be a lot smaller. emily: nice to hear for you, i'm sure. they have a combined $5.2 billion. the combined market value of y.c. companies is $6.2 billion. has that ebbed and flowed in the current environment? >> that was super nice of brian to say, super heartwarming.
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i would still buy their sense, i don't make the value myself but i would say it's going to be worth more than that. emily: what about the combined market value of y.c. companies? are you seeing fructuations? >> yes, going up. it's no longer 65, it's higher, in the 70's. emily: as you continue to build this company, how do you continue to scale y.c. but keep what makes it great? >> one thing about our model that i think works well is that we try to have very hands on guidance with companies. and so we have to scale up the number of partners, basically linearly, with the number of companies we fund. the model works in this very one-to-one kind of way. we try to do that and build a stronger and stronger platform. we do things to help our companies, we have events, software, resource lists. when a company joins ycominator, they get a list of vendors
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system of we try to keep building a better and better platform and we have a bigger and bigger network was y.c. is a network of smart people who help each other. but we try to make sure we have the one-on-one guidance brian talked about. >> i know diversity is something you're trying to focus on but it's something y.c. has been under fire for. how are numbers trending when it comes to women founders, black founders, latino founders? >> i don't think y.c. has been under fire for this recently. i think at this point we probably, we have a long way to go still for sure. i think 23% of the last batch had a female founder on the team. i think -- it comes out to 10% or 11% of the founders themselves are women. and i think 12% of the founders were black or latino. not where we'd like to be, not where the nation. is but if you look at us
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relative to other people with startups, it's working. we've made efforts to reach out and it's working. emily: thank you for being here. apple's fight for customer privacy isn't over yet. the u.s. government saying it will proceed with an appeal of a brooklyn judge's court order. that judge denied the request for aple to help unlock the iphone of a convicted drug dealer. the issue rumbles on even after the f.b.i. says it successfully unlocked the iphone with the help of an unnamed third party and without the help of apple. coming up, we talk the theme of for the hour, the fate of unicorns. answer the $10 billion question he can't escape, that conversation is next. later we hear from y.c. founding president also dubbed y.c.'s secret weapon, jessica livingston. ♪
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emily: continuing with our special edition of "bloomberg west," unicorns, bubble or boom, we focus on those who have billion dollar plus valuations with y combinator. mutual funds have poured money into startups hoping to hitch a ride to a lucrative i.p.o. but now they're riding down -- writing down valuations by significant amounts. they dropped values of companies like drop box by 20%. $9 s peak, dropbox was at million. one of its closest rivals has gone public but it's market value is $1 billion less than it
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was at the time of i.p.o. but dropbox has more than 500 million users and its main product is beloved. joining taos put it in perspective, drops do box president and y combinator president is still here as well. i want to talk about the elephant in the room, what do you have to say to the mutual funds? >> we don't pay much attention to it. we have 500 million people using drop box, eight million people using dropboxes, 500,000 of them paying, companies like expeed -- expedia and others. emily: would you take that $10 million valuation? >> the markets were different then. we like any company will be affected by the public markets. whatever we are today, we'll be something different tomorrow. valuation is an output. you have to focus on the inputs. emily: on one hand people say
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this is just on paper, we've seen like snapshots written down, then written up. it does seem to be having a ripple effect on sentiment. how much do they matter? >> i think this is a dumb conversation. it doesn't matter that much. the stocks go up and down. you know, fidelity marks them down and up. i know fidel tall marked down dropbox shares at one point. it's unclear if they believe the markdowns because i once offered to buy shares from them after they marked them down and they didn't sell to me. i'll offer again if they want to sell dropbox. i'd love to buy them. emily: it is affecting sentiment. even if it's not changing the decisions you're making at dropbox, it's affecting sentiment about dropbox. >> you have private companies on a scale where they never were before or they would have long been public. i think everyone is trying to figure out how to talk about them and there's a new playbook being written. when you talk to investors, the
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markdowns, markups, whatever, it's a bookkeeping thing. it's not like the fun manager -- fund manager is sitting there, evaluating the performance of the company. so they kind of roll their eyes at it, honestly, too. so they focus on, what we focus on is, what are the ingredients of a great company? you have to have a big market, awesome team, product people love. that's what you need to spend time on. >> what dropbox has is a product that people love so much they spontaneously tell their friends about it. and there are five million of these people and they use it for something really important. there are a lot of other things we can talk about about dropbox that maybe are problems, may be threats but valuation markup, markdowns, i don't think people care. i think if you're willing to hold dropbox share farce long period of time, which you should do whenever you buy a stock, like any stock, markets misprice things up and down at different times. that is not what matters. if you make -- this has work
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forward long time. if you make a product people really, really love and figure out a business model and effect, you'll be in great shape. emily: what do you care about when it comes to dropbox? what are your questions? >> i'm a huge dropbox user. i don't know how i would like organize my life without dropbox. i 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
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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 people were in y.c., 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 her >> i think a will the of people, probably most of the people that join the company have been propbox users for a long time and love the product. and when you step back you realize that any company that becomes great always has competition. facebook was worried google was going to come after them. google was worried microsoft was going to come after them. microsoft was worried i.b.m. was going to come after them. if you're not having
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competition, you're not doing something important. competition is a fact of life. i think jeff bezos says it well. you want to be customer obsessed, not competitor obsessed. emily: you've gone from y.c. founder to global c.e.o. how has your role changed and what are the lessons you've learned along the way? >> so as a c.e.o., when you start out in your -- my partner and i started in an apartment not far from here when we moved to san francisco. just the -- there's a lot manufacture ballsed in the air, not only do you have to build a product, which is all you're worried about in the begin, you have to get customer, make sure your business model works, open offices all over the world. a lot of what i focus on is really getting the best team in place, i'm always recruiting and really designing the architecture of the companies that we can scale as we get better, we can still be fast and solve bigger problems. >> to that end, you did what
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you're going to do in your interview. you have sort of accomplished that vision where you said you'd be 10 years from then system of where will you go in the next 10 year, now that we never have to move our data around manually, what will you build next? >> what we think about is, dropbox is moving from keeping your files in sync to keeping your team in sync. so whun is about storage but more -- so one is about storage but more and more it's about collaboration. how do you make it so people can work together more easily? it's kind of crazy. when i visited my dad in the office for like bring your kid to work day, like he had the fastest computer, fastest internet, best everything compared to what we had at home, dialup, slow, old versions of everything. now it's flipped. now my tools in in my personal life are better than work tools. it's crazy. with google, you can search all of human knowledge more easily than you can search -- i can search my company's knowledge.
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i have one search box over here, at work i've got 30 9/11 a born in the cloud kind of company. so much has changed with how we work, so much changed with technology, so much has changed with how we live, it's amazing i'm still using the same tools as my dad, cleaning out my inbox, using these things that were designed 30 years ago. emily: so brian has told me an i.p.o. for them is at least two years out. what's the answer from you. how are you thinking about an i.p.o.? is that still going to happen and when? would you be open to selling the company? >> we don't need to raise money so it's not something we need to be too worried about. some things have to line up. you need to have controls and foundation in place. business needs to be doing well. and then the conditions, the market needs to be good. so the market has not been very kind to public company, or public tech companies lately so we're not exactly in a hurry. that's why it's part of the
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flexibility we've gotten by raising money and now more and more is the flexibility we have because we're funded by our customer, not our investors. >> so quickly, how do you keep employees motivated as you, you know, put off whatever exit there is to be had? >> i think we keep them, we help everybody understand that the best thing we can do for anyone who is a shareholders is make the stock price go up in the long run. you do that by building value. so we try not to get fakes ated on what's the valuation right now. people will get liquidity. we'll solve these problems. but the most important thing we can do is just build a great company. emily: all right. i quse it, as well as 500 million other people. drew house, c.e.o. of dropbox, thank you. can this electric skateboard disrupt the industry the way
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airbnb disrupted hotels? we'll test it, next. ♪
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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
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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 five miles. there's a broad group of people who want to get around short distances. the board was designed with the idea you could walk outside, put the vehicle down and start moving and get to your destination, right up to the door and pick it up and go inside. think about the car lane, bike lane and sidewalk. sidewalk people walk about an average of three miles per hour. you have platforms like hover boards that are good for a block or two on the sidewalk but you won't use them to cover a long distance. r lane is great, with things changing. and the bake lane is expanding a lot, cities are investing in it. we see support from legislators and regulators. california passed a law that kind of formally legalized
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electric boards, with this power limit and speed limit they can be used like an electric bike would be used in any place in california system of we're focused really strongly on the bike lane. i'm bringing some of the advancements in electric vehicles to the bike lane but within the same speeds and ease of use from vehicles that are currently there. emily: that was the co-founder and c.e.o. of boosted board. coming up, abnb set to wrap up its first year in cuba. what's the company's next move? we speak with co-founder and c.e.o. nathan kaparsak next. and listen to us on bloomberg radio on the bloomberg radio app or bloomberg.com. ♪
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♪ mark: you are watchingk." a suspect in the november 13 carries a taxes been arrested in belgium. he is believed to be the mysteries met in the hat who
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escaped the double bombing at the brussels airport. if confirmed, it would mean he played a role in both attacks carried out by an islamic state cell in paris and brussels. john kerry made an unannounced visit to baghdad. secretary kerry placed $155 million in new usa. he also discussed the fight against the islamic state. >> billions of dollars it would been used to finance terror have instead gone up in flames. daesh has been forced to slash his budget and cut in half the salaries of some of its fighters. daesh is unequivocally as an ground, losing leaders, losing fighters, losing cash. mark: he reiterated u.s. support for iraq in the fight against the militants. the state department says the syrian government has released an american citizen held there since 2012. the associated press cites
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unnamed officials identify the person as 33-year-old kevin dawes, a photographer from san diego. he was released and turned over to russian authorities. all not identified him by name, the state apart as voters and described the person who was released as a detainee and not a hostage. this -- despite protests greece has started deportation's of refugees to turkey. 124 were sent back onto boats to a turkish port following a deal turkey made the eu last month. bernie sanders plans to attend a vatican sponsored conference have put him in the middle of a diplomatic dispute. the senior vatican official accused standards of showing "monumental discourtesy in seeking an invitation to the event and politicizing the gathering." a spokesperson for sanders says the invitation came to the vermont senator from the vatican and not at his request. an associated press poll finds
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55% of americans say they have a negative opinion of hillary clinton. that is better than the 69% who find donald trump unfavorable. nearly half of registered voters say they would at least consider voting for, mrs. clinton 683% said they would never vote for donald trump. bruce springsteen, the boss is canceling a concert that was scheduled for this weekend in north carolina. in a statement on his website, he says the state's locking and transformation rules is an attempt by people who cannot stand the progress our country has made in recognizing the human rights of all our citizens to overturn that progress. global news 24 hours a day. ♪ i am in lee chang back for special coverage. unicorns: bubble or boom.
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we just heard from dropbox ceo to houston and i want to turn to one of the biggest unicorns around, airbnb with a higher valuation of marriott and hilton. is already a behemoth in the hospitality industry. shareholders just approved a potential merger between marriott and starwood, putting them on track to become the biggest hotel chain of the world. what is their vision for the future? here is lately charging -- namely chars a -- nate, 90 semester being here. we heard brian say earlier that airbnb was started in a recession with the economy turned down. now we are seeing another broader economic downturn. have is disinfecting your business? ate: -- nate: last year was a huge record year. this year is off to a strong start. i think the great things about airbnb is we are offering choices.
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not only do they get a more personal experience, but also we have prices at every level. in a recession there are opportunities to still travel and find something. emily: is like business to lecture you almost. make an: >> so many people rely on airbnb to pay the rent. companies that have economic challenges see more people opening of their homes which may sacred experience for travelers who want something different. >> you guys raise money for the first time in 2009. had you guys think about building the business so you are not dependent on cap -- people worried about the market turning down? nathan: all 2008 we try to raise money. this is even before the recession began. people thought this was a crazy idea. we got turned down left and right. been a recession begins and we came across sequoia who saw our
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vision and we were so blown away that a top investment firm would invest in us after somebody people said no. i think that we learned is it's amazing when you set your standards really high. ever since that point we were very particular about who wear our investors. >> did you go for a year with no one else investing? nathan: yes, all year. after that first year we were on the verge of quitting. we had an agreement that if yc the not bring a change results we would quit. emily: what is revised offer people who might be getting a lot of notes? nathan: it's all about perseverance. you have got to pace yourself. things do not come easy. you usually have to try a few times. startups die of suicide, not homicide. they don't plan appropriately. >> had did you guys survive? nathan: it's a fun story.
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we traded obama-o's right before the election. that made more money than anything else we did a whole year. emily: you are working on magical trips, a played on more the travel experience. chefs, bike rentals, towards. what other services can airbnb provide to hosts and travelers? have you expand the business opportunity? nathan: we are seeing that airbnb is going increasingly mainstream. one third of all our hosts are over the age of 50. in travelers segments, business travel has become an interesting segment. we now have 5000 businesses registered with airbnb. big companies like morgan stanley, google, salesforce having their employees book their travel. those companies are saving money
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but also the employees are getting to feel like they are at home when they travel. it's good if you're on a long trip like a week or more. emily: how big is the total adjustable market outside of what you are already doing? that would be the market? nathan: tourism is one of the second biggest industries, second two oil and gas. $2 trillion-$6 trillion is the size of tourism. emily: would you ever get into right sharing or partnering with uber or lift -- lyft? nathan: i don't want to speculate about those kind of things. >> we do every longer term rentals? i started airbnb and it seemed like a great way to find out where i want to live for long time. nathan: when you're moving for the city for the first time, why not stay a couple of weeks in different neighborhoods to get a feel for it and find the right place? we do have a lot of folks who
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book a place for 1-3 months. airbnb is a great solution. emily: you guys just had another big moment in cuba. he got a shout out from president obama. you had great success in cuba itself. what are other opportunities for airbnb diplomacy in other parts of the world that are off-limits u.s. travelers? what about iran? those things are not really dictated by us. it has to be easing of restrictions. you just have to wait till you get word. we don't have an eta for iran. cuba was an amazing experience. to be down there with the president a few weeks ago. first time a president has visited in 88 years. to speak with our hosts who say their guests from america come or three days and ask 50 years were the questions. americans from all 50 states go to cuba. emily: i want to address
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regulatory issues. you guys helped draft the law on san francisco to legalize airbnb, basically think it is legal if you register first. there is a new report that claims airbnb still has listings from unregistered host that will not cooperate with the city. what is your response? nathan: i think the core problem is a registration process. its instrument asleep, gated -- you have to get two different permits. i think what is forgotten is these are ordinary people who were asked to go through all the different steps. the city is not really promoting this. they are in a lot of is cracking down on this. for example, they recently sent out a notice to posts asking them to itemize all the belongings in their home and saying they need to apply a business tax everything from the silverware to the tv to the couch. we think this is -- this doesn't make sense and is missing the bigger picture. we do have a good relationship in some ways with the city.
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we've been helping to collect taxable last year and a half. >> i know san francisco is currently doing things that are not that sensible. but at this point you are and 36,000 cities in the world. for a long time i was closely involved with airbnb. you are thinking hard about watching your second city. you have gone from two cities to 34,000 and seven years or less. what has changed about how you have to run the business? nathan: there is a lot of complexity. 191 countries, 34,000 different cities. there are a lot of things you have to do different this first customer support, language, in our policy. we have about 20 offices now. just having a global team means i'm on the road a lot. sure we are working together as one team. seven years ago was three guys sitting around the table this size. now we have 2500 people dispersed around the globe.
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is a fundamentally different way of operating. it's a real challenge. every year it feels like an entirely different company. ipo moreian told me than two years out. he told me the same thing before. sources are telling us that airbnb will be profitable this year. is that true? nathan: we had a big year last year. it will be too long before we are profitable. don't rush. emily: advice from the top. nathan: there is still a lot of growth opportunity still. if we had been in a rush, we would've been profitable long before. is the environment impacting --r we are growing in china, cuba. who want to make sure we are investing for growth but we are also -- >> i seem to have fabulous economics but if they can't find a really good way to invest
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those profits and more growth, i would be really disappointed. , founder and ceo, thanks so much for joining us. sam walton from y, nader y combinator --, thanks much for stopping by. we talk to one of them was powerful movers in silicon valley on the evolving state of y combinator and the big decision to take a little bit of a leave of absence. ♪
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emily: in today's revolving door, twitter is a point pepsico's chief financial officer to the board. he serves as vice-chairman of the food and beverage company. twitter also says martha lane
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fox will be a director, the cofounder and managing director of the travel and user -- please your website lastminute.com. paul graham once told me she is y combinator's secret weapon, jessica livingston. she cofounded y combinator with graham, who happens to be her husband. they thought what we find a bunch of startups at once? it has since become the most powerful tech incubator in the world. editors annual women's founders contest, to nest she's taking a year-long sabbatical to pursue other projects. here to tell us more about why and what is next, jeffrey said -- jessica livingston. jessica: i am so happy to be here. emily: i'm glad we are doing this. if you're the most powerful person at yc, why are you leaving? jessica: let's not come in the
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most powerful person. i'm leaving just to take a year off. i've been doing it for 11 years. i've had two kids in that time. y combinator is all-consuming. it's hard to do anything for 11 years that is all-consuming. i want to take a year off, think about things, let my mind open up, think about some things and do some writing. be with my sons. they are seven and for now -- four now but i will be back. and paula that you begot temporarily, tell me about the management changes. what are your thoughts on how the company has changed and the people you have in place? jessica: i wouldn't be leaving if i didn't feel 100% confident my baby was in good hands. my third child. i feel so confident about where y combinator is right now. we have an amazing team led by sam.
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hand selected in most of the cases by me and paul. we have known all these partners for so long. the team is working really well together. i feel great. i feel like the year will go by and i will come back and things will be in an even better position. emily: he just at the women's yc founder conference this week. the excitement was in the air. there was so much enthusiasm. you had a practical tone. you have seen so much of the years. cap a company y combinator funded are not around anymore. has your optimism about startups changed at all? how has it evolved? jessica: i do tend to give practical talks because i see so much of the bad things that happen to founders. i always find myself warning them about things. i hope my talk would be perceived as inspirational because i was distilling my advice into four different
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things. if you do these things, you will succeed. i'm still optimistic about startups. they are hard. most people fail to do them, but you have just been talking to dropbox and airbnb. you do have these wonderful success stories. the whole goal of the female status conference on monday was to inspire more women to start startups so we can have more these big winners, unicorns. founded and led by women. emily: i know this is been a big push for you. what continues to hold women back? why do we have more women founders? things?ause of other emily: i think it's a very complex problem. jessica: there are a lot of different answers to that. i have been seeing more women applied to y combinator. y combinator in some ways is a proxy for things that are going on.
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we have been seeing more people applicants. we have been funding more women. these things do take time. i see women getting funded by all the mail investors. yes, we more female investors. but within yc some of the most successful rounds of an race in the past year have been by the female founders. i think we need to keep working. it just takes time. it doesn't happen overnight. emily: your husband wrote a very controversial post and i know he took a lot of heat about it because of income inequality. he says it's not necessarily evil it you want to promote entrepreneurship. a lot of people did disagree and he wrote a follow-up post. -- funding any research study on basic income. why has yc been doing this and what do you think paul was trying to say? jessica: i don't want to get -- i know paul variable but i don't
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want to talk about his essays and what he was trying to say. essays he ispaul's trying to figure things out. he is giving the thought, weeks and weeks of thought to explaining complex things. what he says is not always going to be what people want to hear. sometimes the loudest complainers are out there and they are complaining more than the people who e-mailed him and said thank you for writing this essay. it was really insightful. emily: you see so many cycles as a cofounder of yc. where are we in this cycle? bubble or boom? having: to be honest, been through a couple of cycles now i try not to think about it. you heard nate tell you. they started in 2008 were giving -- and were getting funding in 2009 and it could not have been a worse time to be other
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fundraising. if you're building something that people want and you have a good growth rate, you will be able to find funding. maybe it will be a little bit harder but don't think about that right now. emily: yc just had its biggest exit ever. cruise was sold gm for $1 billion. what made cruise such a success and have you get more of those? jessica: i spent a lot of time thinking about that. choosing startups at this stage were we choose them is so hard. even after i've been doing this i still don't feel very confident in my ability. it is hard because every idea when they're just getting started does not look impressive. they had no growth metrics. you are judging on the founder. we knew kyle. behind him since he was in college and i've always been impressed with him. we have funded him through
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justin tv and twitch. when he came to us with this idea that seemed panic crazy, self driving cars, that was a no driver -- no-brainer for us. it worked out. there are a lot of founders that fail. it is so hard to predict. emily: i want to ask you, as you scale yc, and others will be scaling it for the year you are gone, how you make it bigger to keep up makes a great? that is something i will be thinking about when i am gone. the community is so important and it really fosters -- it's an important part of the community once we leave y combinator, much less when you are going to the intense three months. i think we're doing a good job. we have to sort of scale of the partners who can advise the startups as we are scaling y combinator, so there is a sense
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of i am getting good advice. people do care about me. we have to figure out this wonderful place for people trust each other and get good advice. emily: jessica livingston, cofounder of y combinator. thank you so much. jessica: thank you for having me. emily: coming up on monday, bloomberg posts a design conference here in san francisco. our guest is the first person to hack into an iphone and about his self driving car concept. ♪
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emily: it is time to find out who is having the best day ever. elon musk and all of the engineers at spacex proving that the fifth time's the charm when it comes to many a rocket on a moving target in the middle of the ocean. nine --any's thousand
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falcon 9 rocket launched. is separated, turned around and head back to earth. 10 minutes later it successfully landed intact on the appropriate we named bart called "of course i still love you." it's a milestone for the burgeoning space industry. reasonable rockets get custody cost of future space launches by millions of dollars every time. do not miss our exquisite interview with general keith alexander. hereinto studio 1.0 right on bloomberg television. that doesn't for this special edition of the show with y combinator. ♪
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>> from our studios in new york rose. this is charlie > let me talk about this issue of qualification to be president. >> what i said was in response has been saying. "washington post" headline, "clinton questions whether to be is qualified president." i thought it was appropriate to respond. charlie: is it tit for tat? is that what

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