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tv   2015 Tech Crunch Conference  CSPAN  January 1, 2016 6:16pm-8:01pm EST

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inform opinions on any subject. >> watson? ?s it going to happen active >> watson, please start. today, we will demonstrate some of our capabilities generating arguments for or against specific topics. >> let's go ahead and do wikipedia is reliable pro-speech. approximately 4 million wikipedia articles. scanned all 3000 sentences.
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ready to deliver. you for the opportunity to share my view about this interesting topic. it is always good to start with some background. the reliability of wikipedia compared to other encyclopedias through comparative review, strengths and weaknesses inherent. my inherent is that wikipedia is reliable. another reason is that they provided better coverage. these claims are supported by scientific literature. an early study conducted by ibm , that vandalism is
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usually repaired extremely quickly that most users will never see its effect and concluded that wikipedia has surprisingly effective self-healing capabilities. i hope i have convinced you to support my view. makes high school kids everywhere happy. when you ingest that much data into watson, how do you train it to understand how to formulate questions and answers? understandomatically calling in topics from a data set? >> you just give it a topic. he was not trained in that domain. wikipediaformation to and gave a topic and said to form an opinion on this topic. i went through an organized all the information and understand
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it -- it took apart the syntax, reassembled it, and regenerated the language. >> how does it understand those concepts? >> it looks for multiple scenarios and reinforcing information. i was surprised to hear it reference ibm research working from that area. it found some passage in wikipedia and went off and validated it was a legitimate scientist before it would say it. it is constantly looking for verification that what it is about to say is correct. >> is that something people can use in the market? is forward-looking and
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will be available as a service. let me remind you all that at the time of jeopardy, watson was a large computer system in a room. time, we have taken watson apart, lifted it up to the cloud. everyone in this room can now go out and start to compose their own mini watson. >> how long until that is in the market? >> this is probably 12 to 18 months from being in the market. that is a trivial example of wikipedia. almost allingested of the world's medical domain. if you give him the disease topic, it will go into all published medical journals and form opinions on diagnoses and drug discoveries.
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>> i found a really fun story. the russian premier came to an ibm facility. they rigged up a computer you could ask questions of. problem or this one question topic, is it done now? >> prior to watson, trying to solve open domain question-and-answer by writing rules and organizing the information for search. it had very limited success and wasn't until we took an open domain statistical approach and taught language that it was able to answer questions and open domain. have heard more about ai
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and cognitive commuting -- computing in the last six months then in the last six years. why do we see innovation grow so quickly right now? what has changed in our approach? the proverbial perfect storm. much of the world's information is digitized including natural language. computers can now access it. we now have the compute power to do something like you just saw. >> machine learning and statistical analysis are advanced to a point that we can do something like what you saw there. that was not the case a few years ago. >> it is one of the building blocks itself.
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>> think of watson as a whole series of statistical learning engines. thing and it is constantly computing and trying to learn that information. we do not program watson. we give watson data and we give him better data. we give it better algorithms or machine learning but we do not reprogram how it operates. >> you give it a stronger brain over time but you do not tell it what to think. tell it what to think. it learns over the information. when you go out to fish developers, what is your core pitch? >> it is such a powerful technology that i don't have to give a sales pitch. go, how can ily use this? can you give me an api to use this?
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they have been working in a and machine learning for decades. we have opened up the platform and there are hundreds of start up companies. to fund and bring additional players onto the platform. >> it is an outreach push for you guys. >> it has been exponential. we are running as fast as we can to keep up with demand. even large enterprises are using it to transform many areas of their business.
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>> big history and lots of work. it is not cap chat or facebook. do you think you have the mind share to attract even more developers. >> we do not have the mind share here. it is growing exponentially. it will reinforce our commitment in the business community. but think about the areas of computing, it lasted through the 40's. and we start a programmable systems.
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it is a learning system. a pretty important role. >> are there any other big players out there trying to encroach in your territory? peoplee's a lot of great and most of them are developing single alderete -- algorithms to improve search. we're the only company that has developed a complete platform. for any innovation going forward , there will be thousands of pieces of innovation.
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in terms of computing, we don't think of it in terms of the afternoon. >> wattage you pick that business model? >> we can sell lots of boxes. we could open a platform and knowing where it was going. it's just a matter of the charge by the click or not. because this is a learning system and it is constantly becoming better and smarter, it is very important that we share the value.
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>> have you had in the pushback? >> it is a shared risk. as you start to learn your revenue, we want an easy on-ramp . it we want to get going. >> will watson be a key revenue driver? >> it is the highest growth area. is $17 billion and watson is the fastest-growing component. >> and now we can talk about the future. that you to presume don't think ai will end humankind as we know it? to have been talk about luminaries about what this looks
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like. this seems relatively benign and more industrial than aggressive. >> when any new technology comes thatd, people always know they can do great things and not so great things. automobiles, x-rays, you name it. this is going to change the world. there is no question in my mind. it the decisions make, i believe that nearly or perhaps every decision will be made with watson by the side. >> is more of an addition. >> sick of the simple
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demonstration we did. watson, where it has ingested all of the world's information on cocktails for drugs for cancer. if i had cancer, god forbid, and the cancer board was meeting to decide which chemotherapy they were going to give me, i would watson to augment the decision and say, you may want to rethink that based on this piece of information, or here is a new cog for the procedure. will they always maintain that secondary status on how we make choices? are we going to hand off to watson? moral decisions or life and
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death decisions will be a joint decision. we as humans, will always have the control position. as time goes on, more and more decisions we will be able to allow the system to make. making decisions in real time versus waiting for me to digest something. think about that. thates watson power apps we already use? standmore phased inor out? >> watson will be behind enhancing your experience. it will also be visible in many applications where you are being creative or you want
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information, but you just don't have time. i took it will be both invisible and highly visible. physically ubiquitous. -- basically ubiquitous. >> you want watson to be a brand-new technology. >> watson is already the premier intelligenceficial and cognitive computing. that is not something we set out to do, but through the demonstration and what we have applied it to, it has grant recognition. as we move forward, we will decide. we have opened up a new division of ibm around watson health. you have seen us recently stand up new divisions around internet , around education. as watson becomes capable of operating in those domains, we will bring watson into those areas. >> was there a moment in the
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past with watson where you and your team thought, wow, it actually worked? to jeopardy,rney back in 2011, there was a point mademe in 2009 when watson a quantum jump forward in its ability to learn and answer open domain questions. at that point, i sat in my conference room and looked at the demonstration. i said, we have something that will change the world. it was shocking. >> did people agree with you? or did they think you are crazy? >> obviously, a research team had high visions, but they were very much focused on a q&a machine. when i saw the system could not only understand complex language, but good reason and
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learn, i said, this is something that will change the world. this is a new era of computing. >> but again, nothing to fear? no zombies, no apocalypse? >> nothing to fear. it is only going to help us. >> thank you for coming out. [applause] >> man, this room is filling up. you are here to hear the investor talk. how many entrepreneurs inth th e room? so, all of you. so listen up. this is the time to shut your laptop. these are the people who will give you money.
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a big round of applause. [applause] >> ooh! i like your shoes! i am so glad to have this great panel here. thingsroll right into and ask you a hypothetical. cim this supersmart entrepreneur -- say i am this supersmart entrepreneur and i live in austin. everybody tells me i have to move to san francisco. is that true? dana? >> not if you're raising money from gray croft. of our investments have been outside of silicon valley. we are finding opportunities everywhere and i think they are great opportunities in great
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growth pockets. in austin, new york, los angeles, and chicago -- in places all over the world. >> if you are based in austin or new york, or a lay and you have a network that gives you a recruiting advantage then you can stay there. if you don't feel you have the expertise you need for the market you are in, i do think the bay area is quantitatively the best place to found companies. >> i organized the dinner last week and your fellow investor basedoted that being in san francisco cuts your runway in half. if you live in san mateo or oakland, you can get more mileage out of your fundraiser. does that change things? >> as long as you don't spend all of your money, you are ok.
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>> the thing is, i really do think you can start a company anywhere. scaling back is company to the next level. ,ou can find great developers great project designers, great product people in any country, in any city in any town. anyplace in the world. let's say it is working and you hit 100 people on the team. you want to have some vp level votes who are not in the weeds doing the work. fronttwo on the line. finding people who have the experience who have done that before becomes more difficult. it is a matter if it is san francisco, oakland, the peninsula, or even in north bay.
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of experience, especially on the consumer side. it only exists here. there are certain cities in the world where you can -- and new york, l.a., increasingly in starting to see some of that second-generation experience. tuscaloosa, you're going to have a tough time finding that locally. have aportantly, he will tough time for someone with that experience to move there. that is a in a city global city where people are willing to move, and i think los angeles counts and new york counts. ustin is on the edge. it has visibility that makes it attractive to people. it does not have the same ecosystem for what people do next. that is something people care about.
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really, that is the key question. if you can't attract people who are willing to move to your city, you should consider moving your headquarters. >> i think a key point was made. if you have a network, where your network is and what you are focused on. i would argue that in l.a., there are probably the most talented people in the media business in anywhere in the world. it has been the central in ecosystem and they understand the dynamics of that market better than anywhere. if you're certainly a digital media company in san francisco, you would be recruiting executives from los angeles. it depends on the industry and the network that you bring. like any great entrepreneur, you have to be a pied piper and be able to recruit people anywhere. orther you are in reykjavik chicago. we have seen great companies and both of those places and i think that is a huge part of it.
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being able to paint the vision and tell the story to attract people. sectors andt new technologies. maybe i will say quite into asking, what you are looking at that you were not a couple years ago. i don't know if there is a virtual reality headquarters. a place where you have to have a virtual reality company or a a.i. company. you just announced this morning. >> we and disney: an co-led an investment. it is the combination of both the technology and innovation that you find here and the specific expertise related to content and distribution in media that you find in disney. in ourselves as well. we own caa.
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we have made other investments in that media platform that drive the investments. we have the shanghai media landscape married to the innovations occurring here. we have the product design occurring here. the business models are happening elsewhere. it is the combination of both. have you found anything in the past couple years that he would not have imagined finding a couple years ago? >> we're looking at a lot of things that two or three years ago we were not looking at. especially, the food category. now, it is a trillion dollars plus market. we are looking at drones. we have been starting to look at more health-care related things. when it takes a lot of capital,
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it is probably not a great fit for us as a investor. things are becoming increasingly consumer eyes. -- becoming increasingly consum erized. to lookportant for us at these new things we have that looked at before. moderator: i have heard a lot about health care and court sciences. how long does it take to get up to a speed in a new sector? i haven't done anything in that sector so i can't speak to it. what are the big sectors that we sure that's not exactly how it works out. see thee entrepreneurs opportunities and we react to that. it is really hard to predict the future.
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it is a lot easier to observe the present and see what is working and then, try to suspend that is as to like, oh, a stupid idea, that is never going to work, that is never going to scale. that is the bit that gets tricky. seeing the future is very difficult and recently, we invested in a new company. that has seen tremendous growth on the back of this wave of gift adoption from social media. i could not tell you that we had this knowledge of that gifts were going to be the big driver. gifts have been around forever. why now? the point is, we did not need to have a thesis. only to do is to recognize it,
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andwho the leaders were, then to suspend judgment and say, that is not silly. it is a meaningful thing. the context matching is being able to say, this fits into a lens of self-expression that has its roots back from e-mail signature files from aim buddy icons and myspace profile pages you can start to see the connection. that is where i think having the sense to where things are going, next to where things come from, is not necessarily saying, here is where the big opportunity will be. >> we have a slightly different model. we work with investors like these as partners, along with the entrepreneurs they back. we are investing in the industries we have a strong history and track record. health care, for example.
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we are probably the largest health-care investor in the world. we are investing across drug discovery companies and phar ma. differentou a perspective and allows us to be a strategic partner. we tend to find her self, not competing with venture firms were earlier stage -- we tend to find ourselves not competing with venture firms. we came in because the entrepreneur wanted a partner that was global that had deep industry capabilities with a toolkit. we're jumping into the boat with them and helping them row strategically. i think it is so interesting. investor inarly -- i think a lot
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of people think of it as being a firm that drives the evaluations. i will not talk about evaluations. first of all, what do we do here? are you writing bigger checks, fewer checks? how are you handling this? >> we are kind of of the supply chain of venture capital. for us, this year we have been slower to invest. partially, i think in our analysis there are years that have lots of great new ideas. they are big swings going for very large industries. last year or the year before were better years for big, new ideas. this year we have not seen as money. a lot of the ideas are looking for higher seed stage evaluations.
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entrepreneurs are looking for somewhat rich valuations. they don't realize they could be setting themselves off on the run trajectory for the rest of their life. we try to balance the fact that sometimes the valuation does not matter if you are in on something big. you want to be involved with the entrepreneurs, but you don't want to set the company up for failure because it started out too expensive. this year seems like a great year for companies that were started a couple years ago. we have not been super active this year because i think we are looking for big ideas at the right valuation. >> agreed. there has just been a significant increase in the number of the deals being funded, but the valuations at those levels are relatively constant. they have bumped up, but are not crazy. you look from 20 12th two today, those pre-money -- when you look
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those012 to today, notmoney valuations are very different. when you look at average eggs massg back 40 years, the gets tough. blanket. the wet there is sort of the reality factor that plays in. we think about that a lot. in the markets that we are investing in more heavily, some geographies tend to have a little more valuation discipline. it is just lower supply of capital. moderator: are there any sectors that have better deals right now? people suddenly interested in synthetic biology? it is relatively undiscovered.
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>> we have continued to invest in e-commerce companies during a time which it has been relatively out of favor. our feeling is, there has really never been a better time to start a new brand. if you look in the market and look at what millennial's are driving, it is a completely different message. you can't just change your messaging. they are marketing through completely different channels. it is not television and newspaper and you can't spend in big volume on these other channels -- instagram or facebook for example. there has never been a better time to start a new brand. we are very excited about e-commerce companies. they have great value propositions and a great brand. we think they are great opportunities. >> there has never been a better time to be an entrepreneur. >> that is for sure. moderator: i want to give you a chance to talk, but you and i
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spoke earlier this year. we were talking about the fact that there are ipo's really, and even had said that you thought there was this private-public conflict and it is not going to change. there is a permanent shift afoot. at the same time, everybody on this panel wants their companies to go public eventually. have things changed in some permanent way? or are we deluding ourselves? >> that is a big question, but you are talking about players, about $50 billion that has entered the market to invest that was not here before. so far this year, $7 billion of capital invested from historically public investors. $11 billion invested last year, all of which is allowing companies to raise capital at an unprecedented scale, which allows for a deferral, the ultimate public reckoning.
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>> there was a time when this happened before. it was precedented. ateven then, if you look 1999, 20% of all ipo's doubled in value the first day of trading. 1% of ipo's have done that this year. 1%, this is not a public bubble today. there is a bubble in valuation that is largely private. if the gas gets let out of the bubble, it will happen in a slow-motion way. it will not be a dramatic correction because it is not a public market that has been participating. does it ever happen? do we see public investors are dissipate? of course, at some point liquidity is necessary and at some point, you will see a correction. they will occur at corrective values relative to the private .inances wil
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moderator: at this point, are they hitting a wall? >> if you are a private company and to see this correction happening, it is much worse for founders and employees for that correction to happen as a private company versus as a public company. you have preferences from all of these investors who have put in all of this money who are looking to get made whole before any proceeds go to employees and founders. , it changes alic little bit. all the presidents go away. everybody has the same class of stock. if there are fluctuations, everybody shares in them equally. unlike in the private markets, where folks with preferences and folks who may feel they have overpaid will be very unwilling to have those preferences messed
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with in the future if there is a requirement former capital at a lower valuation. now you actually have better access to additional capital as a public company and you have employees and founders in a better situation, if there is some sort of correction. it is interesting there has been this reticent to go public for companies who are able to do so. sorry, jimmy, i am having a little trouble hearing you. >> we have to get him up on the panel. moderator: i know, where is that guide such a mark -- where is that guy? week wheretalk last bill gurley talked about a few companies whose economics he did not understand. he did not necessarily say they were doomed, but i am just curious if there are -- there
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are 150 companies valued at more than $100 billion. are there any names that you can offer? again, a company that you don't necessarily understand. >> i am not going to name a name because that would be indiscreet. the interesting exercise we have is, we have to try to make investments where 100% of the investments work. the wayot playing alpha the republican fund plays and ultimately, is a basket of investments. if you look back at 1992 and you made 100 investments and it was you wouldh sector, make a 20% return on your capital by the time you exited 10 years later, 2002. it would be highly concentrated in microsoft and intel. you had invested across the basket of "unicorns" in a
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2013, you would do just fine. you would have a few companies that did extraordinarily well, but there would be a lot of roadkill, a lot of companies that would not survive. their economics would not work and ultimately, in a rising markets, people don't ask of the hard questions about cash flow generation, unit economics, balance sheet, leverage of the scale. y focus on revenue. ultimately, they have to get to a place where they generate cash and valuations are a function of cash flow. moderator: i have about 20 more questions, but we have to get going. thank you so much. [applause] >> and, we are going to go to lunch. just kidding.
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?hy are you guys all here there are so many people here. i don't really need to do this part of my job, but i am going to. i am going to relish it. please welcome to the stage, snoop dogg. whats up? >> mwah. >> we go way back. you are going to sit right in the middle. i am going to tell you where to sit. you are here. snopop dogg: yes i am. >> you have been investing for a while now. why? ogg: investment has to be something fun and something i feel is different and amazing
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you know, because that is what i like to associate myself with. first and foremost, that is what i am looking for when i do invest. what you have learned from your investments, where you investing with some plan in mind. you seeking something out? beginning, it the was investing in creativity, but then it became more business. is in the i like cannabis industry. i would always look to see if things were missing. i was like, the best thing i could do is to try and develop my own situation to see if i could see where i fit in on that side. >> there have been rumors that you are building something and i think you might want to tell us a little bit about it. snoop dogg: i have been building a little something and it is called mary jane. we brought some video to explain
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what it is. if you don't mind, we would like to show you a little clip. wellness in the 21st century. ofiety's perspective progressive culture has modernized how we interact and communicate. hundreds of millions of people use cannabis around the world. the effect is intensified on the global scale. cannabis2015, became a hot topic. today mary jane cannabis 2.0, across the world's top politics, sports.shion, and
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news, video, mary jane offers something for everyone at the center of the cannabis lifestyle. toolsane covers essential for the new frontier of cannabis, bringing together consumers and businesses in a streamlined fashion online and on mobile. tois a revolutionary way discover new products for cannabis consumption. it is for dispensaries to find locations nearby. mary jane represents the cannabis use part of our daily lives. cannabis culture has reinvented the culture paradox. mary jane is at the center of the movement. [applause] >> alright.
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world. ♪ new what kind of partnerships will we see, the kind of network affect? this isgg: i think that probably the priority on everything we are doing right now in the cannabis space. obviously, snoop has been at the helm of this movement for his whole career, globally. the time is just right. with thehuge arbitrage way the conversation around cannabis and the utilities that are provided for the community. and for those that are touched by cannabis and want to learn more about it, it just was not available and it was not done authentically. k, was not driven by i thin a certain sophisticated standard of content, which is our
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expertise. along with some of the partners we have in this space. like my good buddy that is joining us in the content space. snoop dogg: seth rogen is down witht theh the team. you can look for great content from mr. rogaen on the mary jane site. ted chung: miley cyrus is part of the support group to help mary jane. it is just a sort of gathering of the top-tier influencers in this space and sharing the normalized, modern communication around cannabis. moderator: this might sound like an obvious or dumb question, but like, why do you cannabis so much? was is it?
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it has been such a huge part of your brand, i would just like to know why. snoop dogg: i should take you to my green room. moderator: i am fine with that, after this. snoop dogg: 41, i enjoyed it for medical reasons. moderator: trouble sleeping? snoop dogg: every time i have always been around it, i have seen beautiful things happen. i have seen people manifest these, love, happiness, and harmony. i have always been advocate for it. educational and technical with of the entire world in general. it gives off more than me just trying to smoke. if you want to learn about it, if you want to get some insight, we will provide you with the information you need to know, we will provide you with the encyclopedia for the cannabis world. moderator: cool. can wend of content
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expect to see? is that there will be a large network of not only celebrities, but editorial workers and videographers. what can we expect from this video content? ad chung: it really is diverse range. we are talking about cultural content with regards to technology. food, we have a cooking show and a bunch of original series coming out. you know, to kind of expand aboutr, the great thing the cannabis industry beyond its medical benefits and the social benefits, it is the job creation. we are talking about a business that will be in the $19 billion range must agree in a few years. in the state and 10% of that went to the board of education. where else in places like the heartland of america will you see a cultural and economic evolution like with cannabis? beautiful thing
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about what we are doing. it is a movement and an integration into a pop-culture is and what real business is in america today. we do have one thing to show you real quickly. one of the series is called "deflowered" and we had the opportunity to meet with captain mike owens and sergeant matt from a charity that helps veterans reintegrate into the work force. "deflowered" is a very cool one-on-one interview series worthy person gets to enjoy cannabis -- where the person gets to enjoy cannabis and share about a new life experience they have had. so, if we could play that real quick. mike, and i work for a nonprofit. >> i am sergeant matt. this is the flower.
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-- this is "deflowered." so, i can tell you the first time i discovered alternative medicine, being in military and combat coming home and operating here, that white noise is deafening. i had a friend that transitioned out of the military and did not properly transition. he went through a lot of turmoil and went down the path of least resistance. he did everything he was told. the veteran administration said, here is what is given to you, here you go. was not a route i wanted to take. walkedand i have always
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down the same pathways. i was taking medicine to help and ahe stress, anxiety, sleeping and i could not function on a daily basis and also 30 pounds. i got arrested, it was bad. i had to change what i was doing because i knew i would not be around much longer if i continued. retreat down in ocean beach and it led me to thi s awakening. teach you how medical cannabis coupled with massage therapy and yoga, all of that combined, can treat stress and variety. it is extremely beneficial. alleviate taking so much medicine. it is overwhelming. cannabis is the only,
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i would not say drug because it is not a drug, it is the only meditation i have experienced that has beneficial results. >> it is america, i should be able to do this. ♪ moderator: wow, that is pretty awesome. congrats on that, but iw ant a slightlyve to lighter note. a wise man once said, "i've got my mind on my money and my money on my mind." is mary jane going to be advertised content or is there more to the model? advertising is part
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of the model and content integration, of course. opening up the door to the real discussion, and there will be serious content and news such as "deflowered." we will also have lighter content and humor content and music video. partners like seth rogen are helping to put this together. the most important thing though, isthe business itself, which in the multi-billions, does not have a definite destination to share. the brands don't have a place to share what they want to communicate and the retail locations really don't have a place that has repeat usage where they can accurately provide information and medical stats and technical stats on the products they offer. mary jane will definitely be at the helm of that when we launch
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in october. moderator: in terms of legalization, the industry and country is changing rapidly. you are behind medical marijuana legalization, i would assume. onop dogg: i stand very high the legalization of marijuana around america because it is necessary. it is doing a good thing. you look at all of the medical studies of the people who are helped when they have seizures and all those things. i just want to see it legalized around the globe. moderator: even though the cost is going up for the un-user? snoop dogg: but the return, look at colorado. they are making so much money and they are putting it back into the schools. the crime rate is dropping. it is helping out the situation isneed help with, which
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staying alive and strong as a community. i look at what it is doing for colorado and if it was doing this for the whole globe, what kind of world would we be living in? moderator: you have a channel on youtube and that has been very, very successful. you have been a media mogul for a long time. with the launch of mary jane, what have you learned from being so indebted in that social media space, especially with you to, a homegrown form of content brought over to mary jane? snoop dogg: just at the direct connection with the people, to give people what they need right now. people can tell me what it is they do like and what they don't like. just do have an information hotline with the people without there being a third party or a wall, that is the brilliance of the social media network nowadays. between myself and the people i, family -- i don't even call them fans because we are so close through the direct connection. moderator: you are a huge brand
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on your own and you can do your own promotion. how do you expect to get the word out on this? you think it will spread virally the way your content does on youtube? snoop dogg: we are going to do what we do. we are going to connect with some of the top people. we provide the industry with id rightg that is vo now. we're the information hotline to cannabis. we are what is missing. we are what it is to be in that lane. it, the game,of the originator, you dig? snoop.or: i dig, ted chung: if you look at the competitive space, there are a few companies out there that have tried to enter the marketplace and their downloaded apps total and their page views total our numbers we
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will crush in the first six months. even today, you can go to and we are allowing 420 people a day into the site. thousands of of sign-up's. the interest level and the demand is there. it is just about someone coming to the forefront and providing the media platform that can take cannabis to the next level. moderator: you guys, snoop you have been smoking forever, and you know, your brand is tied up d it seems like,n it with mary jane, the whole idea is the mainstream of the version. it is tied up in other things. it is not just a standalone product.
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given your history with it and the fact that you seem to be prepping for the future, what does the future look like in 5-10 years with regards to cannabis? snoop dogg: it makes me proud to say that mary jane will be the out ofo bring people o the closet. there are so many people in the closet right now that do what we do and they really want to come out. we are going to give them the opportunity to come out there some fashion. whether it is the cooking show, or watching this, or just being general. i think it will be a better world if everybody comes out of the closet and admits they like to smoke. my name is snoop dogg and i am a stoner. [applause] moderator: who here enjoys smoking marijuana? be proud! snoop dogg: there are so many
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who have yet to come out of the closet. it is ok. we're going to find a way to get y'all out of the closet. turn you into a believer. snoop, you have conquered a number of articles and built an empire. why not just set up on an island and get yourself a nice treasure chest? why do anything? snoop dogg: first of all, it is an industry filled with a bunch of geniuses, like yourself. i have always felt like i was a genius and i have always wanted to challenge myself. i feel this is the right opportunity where me and my team to monopolize off of something and i have been pushing for so long to not only make money off of it, but to make people understand what it is and why i love it so much and to make it a
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global interest around the world, international 24/7, seven days a week. it is about getting up and trying to conquer something once again to see if i am still great at what i do. moderator: ted, you said the other day when we were chatting that mary jane will be influential not just to people who smoke or people who consume cannabis, but that it touches everybody's lives. bettman me think a little bit. -- that made me think a little bit. my mom doesn't have any interaction with cannabis, ever. how does it affect her life? ted chung: she may want to ask you about it. as long as you inspire youunication in any facet, and your mother can have that conversation. if she wants to find out more about it, mary jane is the perfect place to enjoy the content while it is there while learning about it. every piece of content on the
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site, whether it is original content, or can connect to the , whether you are a smoker or not a smoker and you would like to try an edible, we provide you a comfortable experience. it is interesting you asked about your mother. i think the other part we realized was all the other sites or apps that do exist, they are designed from the standpoint that might be even a little femalefish for a standard consumer. whether that in mind, snoop and i began the initial design plan -- the entire design team is woman. i saw a group of ladies just the other day -- what was the name of the program? moderator: it is built by girls. whochung: yes, for everyone
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were not thought of for the equation, especially the female consumers -- they are actually, growing at the highest rate. we wanted to involve everybody in the discussion so we can elevate the presentation and do 2.0, that cannabis nobody has ever done before. moderator: snoop lion or is it snoop doggz? what are we going with? leave the: i will last name out until i figure this tech thing out. moderator: you are like moses. you only need one name. mary jane launches in october, is that correct? ted chung: yes. we are allowing 420 people into the data site everyday.
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the address for this website is 420. we planned that. we launch in october. come check it out. we want to make the insperity experience better and better. it will be available online and on mobile. moderator: a huge round of applause for ted and snoop. [applause] i will come see you in a minute, ok? ♪ am feeling good. you guys feeling good? absolute silence. you guys were laughing at everything snoop said. alright, whatever. our next guest was with us at rupt europe, the first one we did.
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welcome them to the stage! ♪ >> hello. at tech or in large crunch based out of london. pavel durov went on to create the telegraph. then, we went on to create telegrams. we have about 60 million users and are sending about 5 billion users today. now, i checked
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earlier today. it is over 12 billion messages delivered daily. so that is breaking, as of today. i think a lot of people would like to ask you, what is the point in telegrams in a world where there are so many other messaging platforms? pavel: it does not matter how many messaging apps are out there if all of them suck, right? >> which ones suck for you? pavel: for me and most of my , i can elaborate on this. >> please do. in 2016. are living we are supposed to have flying cars right now. >> jet packs. pavel: absolutely.
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if your phone goes dead, suddenly, you can't get access to your messages. it is over. you can't send documents or big media. there are a lot of limitations your communication. and it is not private. big fan ofre i am a what was up three years ago and i am not sure about now. >> you mentioned privacy and he made a big claim about telegrams having the ability to end encrypted. that is a laudable claim. what does it do for the business, in a sense? what is the business proposition in encryption? friend when i had a i was living in russia and she told me that she was presented
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with a printout of the messages in the police department. they basically intercepted messages and she told me, they tried to use it to blackmail her. privacy is not something that is relevant only for business users. business is most affected because they could be blackmailed. rich people could be blackmailed and their information is more available. yourator: in other words, say you retain users because they trust you because messages cannot be intercepted. the things is one of that make telegrams different. there are many more. moderator: you are rolling out a box platform. do you want to describe that to actuallyy that might end up becoming the significant part of what telegram is? pavel: we launched the platform
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-- moderator: this is your third-party developer? pavel: yes, june of this year. any developer using simple api's can create this platform. on the other end of communications, there is this machine that is dealing with all of the messages on that side. actually, a lot of services have appeared using that third method of communication. education, dating, productivity, lots of stuff. i learned yesterday that one of the most successive parts of had eight digital acquisition attempts. it is only three months old and already, eight digital acquisition attempts. moderator: so you are saying someone tried to acquire it?
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so you said there were startups launched on the telegraph that might grow in their own right? pavel: that is what is happening and i think the news will break out later this fall. moderator: the box platform is almost like apps for telegram? pavel: that is true. moderator: using third-party developers might make money out of it in this way? pavel: exactly. we are think of launching another api so all of the third-party developers could accept money easily from their users in telegram. moderator: is this something you what extent in terms of advertising? a box of themselves might become marketing channels for brands? pavel: that is already happening, actually. some are being used for this. i'm not a big fan of that. in, receiving
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messages on this platform. it is already happening. third-party bought at agencies dealing with this. moderator: really? that might become an ecosystem affectively. pavel: absolutely. it is only a few months old at a very early stage, but what we are seeing we are very happy about. moderator: you have clearly made some compromises on the platform. for instance, there have been reports that you have met with the iranian government to allow usingct -- you are platforms inside iran. can you confirm that? pavel: i can confirm the first.
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we block and foreign markets rn is poor i prohibited. starts to reappear in other spots on the platform. moderator: this is happening in iran? pavel: this is happening in iran, iraq, and sometimes, saudi arabia. as a result, we get users we did not want. we are not big fans of porn. we don't want telegram to be perceived as forms of poor and. -- as forms of porn. we do block this kind of stuff. moderator: you make a big play of being a libertarian and free speech, but on the other side, you are cutting off access at some level. is there any sort of secret behind the scenes, some negotiations with these governments? pavel: no. we do it purely for business decisions.
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to be perceived in some markets as something that has to do with porn. this is the same reasoning behind the apple decision to block porn content on the app store or the instagram decision to block porn. or facebook or youtube, etc. with think this is the right thing to do. if you speak about privacy and freedom of speech, we have very adamant principles about it. through over two years of our existence, we have not disclosed a single byte of data and it was not easy. speech, ifdom of there is a blog that has to do with criticizing governments, we would never block sites like that. moderator: the facebook of
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russia -- you controversially, were told to get out of that by forces aligned with the government. is that the case? moderatorpavel: it is roughly t. moderator: roughly true? which part is true and which isn't? pavel: it is roughly threw in the sense that it is true and rough. but yeah -- moderator: they were incredible stories around that time. that you are effectively framed for a car accident, that you faced political pressure. pavel: that is nothing out of the ordinary in russia, leave me. -- believe me. if you are in the country for a long time, you get used to it. it happens to other businessmen and i am no different from the rest of them.
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moderator: you have lived and imaginative digital lifestyle. going to continue to run a company in this way, moving around the planet, trying to evade authorities? do you feel like you are a target? pavel: not so much, no. sometimes i feel tension. for example, here in the united states when i go out of the country. estionit is a good qu because right now, we are a can onlym that to rent houses for the short term. moderator: you just rented a house in finland and got your team together? pavel: it was great, absolutely great. some of the guys, they stay at the home. we outsource some of the design
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and customer support to eastern and southern europe. other than that, we are a small team -- small team of 15. we like to travel and we want to use the opportunity. mica: you had to raise money. you took $300 million from the sale of the share. is that correct? pavel: i cannot confirm the number. i was very lucky. mica: higher or lower? pavel: i was able to get out before the market crashed and it was before the events broke out in ukraine and it was extremely fortunate. mica: that would have affected the value. pavel: before that, the events broke out in the local currency went down. the value of the company was 3-4 times slower than it used to be.
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mica: do you think that facebook will eventually take over in russia? pavel: i am not sure. they are struggling to remain relevant because of the mobile apps attracting users. snap chat and apps like that. mica: any board meeting you have with outside investors might, you know, the in shambles, shambles because you move around the planet so much. pavel: we like to be independent, at this point. we think there is more than market shares and revenue streams. mica: i mean, do you have enough money to last for a while? pavel: yes. definitely. mica: you can build out the
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platform as you see it. pavel: yes. mica: what about -- i mean, in a way, is this a revenge on putin? secure messaging. pavel: i'm not focused on revenge. it is ironic that a lot of high-profile people use telegram. i am happy with that. russia is the number seven market for us, in terms of size in the telegram ecosystem. it is not important if we are big, small, or blocked in russia. we have been there as a company that owns the russian market.
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this is not a new challenge. mica: can you go back to russia? pavel: i can. i was in russia for my mom's birthday. i can go in and out of the country. nobody seems to care, these days, because they have other things to be worried about. mica: so, you are not so high profile. pavel: not anymore. i sold my rights to a social network in russia. they should not be worried about me, at this point. i try to spend as little time as i can in russia because i want to see other places. mica: you like to travel. does it concern you that isis uses telegram? pavel: they do. mica: does that concern you? pavel: that is a good question. mica: do you sleep well knowing that terrorists use the platform?
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pavel: you know, that is a good question. i think that privacy, ultimately, and the right to privacy, is more important than our fear of bad things happening, like terrorists. there is a war going on in the middle east with a series of tragic events. ultimately, isis will always find a way to communicate. and, if any means of communication turns out to be not secure, they will switch to another one. so, i do not think we are action -- actually taking part in these activities and i do not think we should be guilty or feel guilty about it. i think we are doing the right thing, protecting privacy.
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mica: you think they would be using something else? pavel: absolutely. there is open source apps you can build and making encryption and install them. it is all available and the technology is there. it is up to us how we use it. mica: kik raised millions of dollars to build out more of an asian-style messaging platform, where you can order a car or purchase goods. you can order pizza on chen-chen. is that where you want to go with telegram? not a messaging platform, not just messaging, but also, other services, as well. pavel: yes and no.
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in order to go to this model you have to have high penetration in markets. you have to be socially relevant for everybody. and, it is not always the case with apps like telegram and kik, like you mentioned. although we are big in some of the markets and number one in a couple of them. we do not have the dominance that is in china, japan, or korea. so, we will experiment with a payment system and a third-party application to build on top of telegram. we do not feel it is going that way in the near future. mica: isn't there a danger that you become an also-ran? it is useful for messaging and there is not much more.
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pavel: yeah, the interesting thing that we noticed is that people who sold telegram last year and this year used it as the primary messaging application and that is why we see a huge increase in the activity. we have them delivered daily and this is an indicator that people really love telegram. more often than not, they start their day on the messaging app. i think that we should be happy about this and we are definitely in the right place. mica: what are the next big points you want to get to?
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when will you be at 100 million? pavel: we are getting there. something that is discouraging about getting the users is that you always get compared with the older messaging apps. any media covering this, they say you have 70-100,000,000 and this is a far cry from 800-900,000,000. they do not take into account that we are that old. if you start comparing telegram with other companies, these are huge numbers. we are not big fans of
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announcing numbers. mica: we will look with interest on the next moments of announcements. thank you very much. pavel: thank you. [applause] >> our next panel focuses on something that is hugely important, that is the health sector. it brings experience from being a doctor to the investments. please welcome our guest and our moderator. ♪ >> beth, you are a medical
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doctor and a trained immunologist. and you have been working in the area for the last 10 years. it is not a common thing to be someone with a medical background and get into vc. >> i started in medicine and did not know what a venture capitalist was. i had a long way to go. as i progressed in my career and developed new therapies for diseases that are in better shape now, i ended up at amgen and i realized that the board members were venture capitalists and they started to teach me about what they did, introducing brooke byers and the rest is history. i love building companies and helping entrepreneurs. >> there is interest in things like synthetic biology. what have you seen from interest with co-investors?
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>> yeah, you know, in the world, in the biotech world there has , been a specialized space to invest in and there are a lot of people who are traditional biotech investors to come out of banking, business development, science degrees. we are seeing some of the tech firms investing in traditional biotech. there was an announcement we could go with peter keele, who invested in a company that has a tremendous opportunity to change the way diseases are treated by using technology. it is easier to relate to now. >> you have said before that this is the last industry for technology disruption. what do you mean by that? >> if you look at everything else that we do in our lives, whether it is paying for things or ordering our goods and transportation, there has been
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health care, which is the last biggest industry to be disrupted. we spend 3 trillion a year on health care. yes when you go to a physician, , you see computers and it is still really behind the times. it is a green field now. >> why do you think there is such an interest in a more wild science? for example, inserting pharmaceutical drugs, opiates, why do you think this is a time when it is happening?
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>> it is about the tools and it has always been about the tools you have to understand the , levels going on and the human genome was sequenced and we understood what we did not understand before, taking it to the next level. we can insert different parts of genes that allow them to behave differently in areas, like cancer, with something called t-cells. you are taking a t-cell and engineering it with a new receptor that goes to where the cancer is and cures patients with diseases like a cute looking -- acute leukemia. it is a dream as a physician to have the impact on disease. i was not sure we would see it in my lifetime. now, i imagine what else we could see.
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>> that could mean that we don't have to have patients go through chemotherapy and lose the hair. we have a barbaric way of getting rid of cancer. >> the way we have treated cancer is a blunt instrument. we used a giant hammer to kill the disease. you are killing all the cells. now, it is targeted. if feels like a tumor at a time. we are learning about the origin of the tumor and the genetic profile of the cancer.
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it allows us to engineer specific drugs and therapies to treat the diseases. it is remarkable. >> a lot of that which you focus on focuses on their piece that do not affect everybody. what are you seeing that has the ability to change medicine overall? >> let's take it from different levels. if we look at therapeutics, there is an area where people are interested in and i have no idea if it will change medicine. it takes advantage of what we know, is living in us as individual organisms and how it affects health and disease. there are people who think about how we use the data and the analytics to understand how the micro biome can impact. -- impact disease. it is really early days, but it could be something impactful. if we think about how medicine is practiced and how it is going
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to evolve in the future, where you actually get your health care and see your doctor is changing. we used to think that doctor's office, the hospitals, the emergency room. we think the cell phones and smartphones. we think of retail, going into target. there is a clinic waiting. we think about social engagement that allows understanding diseases. the way we think about consuming health care is different and is changing. >> it is interesting. the smartphone becomes the clinic. you can hook in your smartphone and there are certain things out there. you pee on a stick and you said
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you can send it to your doctor. there are ideas that we are waiting on for approval. >> there is an idea we are looking forward to. it is a thermometer. it is the most common medical device used in the country and it is a technology that allows you to have on demand at the moment, what you need the moment you fall ill. it is transformative. they have an interaction with the physician, instead of running their kids to the emergency room. they have on demand for drugs or supplies they need from their local pharmacy. andy can also understand what is going on in the community, doing crowdsourcing of the diseases. it changes the way that we think about dealing with illness in the community. a small example.
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>> you see a lot of these before we even see them. what are some of the wilder ones we are starting to see? >> we see a lot of things related to using data to discover things that, i am not sure are a big data problem. what drug will work for what disease? it would be nice to think that you could analyze a set of data and figure it out. to me, it goes away from basic biology and assumes it is all computational. >> we have talked about this. i.t., it is a huge
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problem that no one knows how to fix. i get pitches of patches to the problem and not a solution. what needs to happen for us to actually have a solution integrated in the hospital and people truly communicating with their doctors in an on-demand basis throughout the whole country? >> there is a lot that needs to happen. the first is building the pipes. you have to have places for data flow and have it he ubiquitous. it cannot be interpreted. it is still in silos. the government is doing that and they are saying that every hospital and practitioner has to have electronic medical records. get the data out there. as soon as we do that it is then , ubiquitous and we have access to it on our phones and computers. the analytics are up in the clouds and that is where we will see the changes.
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we are seeing hundreds of pitches from entrepreneurs who are unencumbered with the old school nature of the health care, the hospitals, and the provider offices. they are basically ignoring that in a good way and they are coming off with different technologies that you can use that allow you to understand your health. hopefully, it will be communicated back to your physician. >> you will have this opportunity in a few short years where you have people communicating with their doctors about all sorts of things, rather than waiting on bureaucratic hospitals to get back the results.
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we see what happens and we will keep things more instant. oflet's use another example a company that is tackling one of the most important and highest priced diseases in the nation, diabetes. you want it to go up and you think about onstar for your health. you have to measure glucose multiple times a day. if you do not, you have terrible consequences. it is a pain to do. they have developed a fully integrated system and they go up to the cloud instantly. they have diabetic nurses who will call you the moment the glucose is too high and too low and they will give you the information you need.
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instead of having lots of information, it is instant where you are immediately connected at the moment that you need it, as opposed to waiting for an appointment. this is onstar. we have it in the cars. why should we not have it for diseases? >> we hear about living forever and curing cancer. you hear about being beautiful at all times. what is your level of optimism on whether or not we will actually live forever in our lifetime? >> living forever is a flawed concept. the human body is going to age over time. so people talk a lot about aging. look at what google has done
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with levinsohn and calico. people are trying to tackle this. the problem with the "live forever" concept is, let's say we can do a better job with alzheimer's, diabetes, or cancer, you still have bones, muscles, hearts, everything else that is going to age. i think we are pretty far off and i always ask if i want to live forever. >> i do not know that i want to. maybe extend life in little bit or live comfortably? >> that is the key. you want to be healthy and active until you drop dead. >> it happens to everybody. >> it does. >> who knows?
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how close are we to finding a cure for cancer? >> it will not be a single cure. it is one cancer at a time and we are doing a good job at that. i talked about the leukemia and the diseases like breast cancer and prostate cancer. i do not know if you sure this. itcure it, but you can make about the chronic diseases. >> there is more behavioral health and it is not a moonshot "live forever" type. why is that? >> we hope to do both. we are, in cases like -- where
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we are trying to cure cancer in those companies, it is a step at a time. there is definitely a moonshot idea with digital health. we are trying to transform the entire way health care is administered to get health care on the smartphone. we are doing all sorts of investments. >> what is something that is not in the portfolio that is under the radar and we should pay attention to? >> well, i think -- you know, talking about disrupting health care, companies that are changing the way insurance is
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administered, whether it is oscar, cloverhealth, these companies take the old-fashioned way of thinking that an executive is putting together a plan that is right for you and that is not the case. you need technology and analytics. these are companies that are going to transform and a lot of what we think about as health care. >> i want to talk about someone on everyone's mind. what is the sentiment right now about how long we have to be the ellen powell firm? >> we are happy it is over. the case is done and we would
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thatto look at it in a way a lot of good came from this. there is always good that comes from adversity. you think about the levels and the increased awareness with the companies in the valley and it has really been incredibly positive. >> what is different? >> they have had the best track record for hiring women with us being the most forward-leaning firm. i do not know that we are different. there is more awareness and we are really excited about the partners we are hiring, focusing on a number of initiatives. 30% of the class were women.
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there will be underrepresented minorities and we are more focused on it. it is great for business in the right thing for society. it is great for the firm and the entrepreneurs. >> what company do you see as a unicorn? >> there are a few unicorns already. i hope that, instead of unicorns, we have public companies that are billion-dollar companies. so, we are really excited about a number of our companies that
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are going public. so, i want to shift the conversation from unicorns to rainbows. there is a pot of gold at the end of it. it goes public and has liquidity. call it a raincorn. it is billion-dollar companies in health and the biotech sector. sector. >> thank you. >> thank you. appreciate it. [applause] , cartoonistay night michael ramirez on his career and his book of simple cartoons. >> i have this conglomeration of extremist settlers and a
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palestinian figure, you'll notice he is on a prayer rug but he has shoes on. both of these are utilizing the false religion for political proves once again i am an equal opportunity offender. >> sunday night. >> on the next washington journal, michael rubin of the american enterprise institute discusses strategy against isis. and also author barbara eh ageeich discusses middle working americans. >> two days of feature programming, this weekend on


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