tv Best of Bloomberg Technology Bloomberg February 10, 2018 11:00am-12:01pm EST
♪ emily: i'm emily chang, and this is "the best of bloomberg technology." we bring you all are talked interviews from this week in tech. coming up, snap soars in trading after smashing estimates in the fourth quarter. we break down the first earnings victory since it went public. plus, tesla cooled its cash burn and after reporting fourth-quarter earnings, tesla still sees its model 3 production meeting weekly goals. we will break down the earnings numbers. and our exclusive conversation with facebook coo sheryl sandberg, and why she says the #metoo movement hasn't gone far enough.
but first, to our lead. snap spiked after a blowaway fourth-quarter earnings report, with revenues topping estimates for the first time since the company went public almost a year ago. the earnings were buoyed by momentum in the ad business and user growth. snap said fourth-quarter sales jumped 72% to $785 million. its daily active users are up 18% from one year ago. we broke it down with a market analyst and a bloomberg reporter sarah frier, who covers snap. >> what did snap get right this quarter? >> well, they have been transitioning their advertising business to make it more automatic, more programmatic, selling ads automatically, which means they can have a bigger base of advertisers. the price of ads has gone down, but the volume in the amount of time people look at these ads is going up, so snap has been able to really make this work for
them this quarter for the first time. >> deborah, what is jumping out to you? we know they have been doing a lot, the whole redesign, perhaps we are seeing some of the results of that, but what do you think is really driving these results? >> you know, i think it is a couple factors. first of all, snapchat really needed it this quarter, because the previous quarters were not so good for them. so this is a super positive sign for the company. i really feel that users are still heavily engaged with snapchat. that's proven out by the increase in user growth rate this quarter, and i think that advertisers, some of them have been skeptical, but they still see snapchat as being a place where they can be super experimental, or they can try new things, and where they can really start to engage with that super important youth and teen audience. >> i'm looking at the after-hours chart on my
bloomberg, still up 20%. the big question, can they sustain this over several quarters, not just one? >> i think that is still a huge question, because this company has not proven that it really has a lot of visibility into the future of its business. prior quarters included big surprises, nothing to show us that future quarters won't as well. they still have a long road ahead of them, and they are competing in a market dominated by facebook and google. yes, those big players have advertisers wanting alternatives for their money. snap is marketing itself as an alternative, much cheaper ads, but it is still very competitive, and instagram is a growing far past what snap has in terms of products that snap invented. >> right. instagram and facebook, both accused of lifting some of
snap's product ideas and executing them, sometimes even better. debra, what do you think the challenges our first snap going forward, in terms of what you will be watching? >> first of all, to put a few numbers on what sarah just said, we are forecasting that instagram will have $8 billion in worldwide ad revenue this year, compared to about $1.8 billion for snapchat. -- $1.5 billion for snapchat. so there is quite a lot of gap between the companies in terms of advertising revenue worldwide. however, snapchat is growing at roughly the same rate, about 90% growth this year compared to about a similar amount for instagram. so to put those numbers on it. to get back to your question, i think the competition with instagram and facebook is obviously something we are watching very, very closely. we are also watching because net snapchat up until now has been very aggressive with new products and new innovation, and we are starting to see things like maps not perform as well as
maybe the company had hoped. we saw spectacles not perform as well as the company had hoped. so the question is can snapchat actually continue to be aggressively innovative and successful at those innovations and stay a step ahead of the competition? >> and what about the leadership turnover at the company? is that a concern to you? >> to me, not so much. obviously you always want strong leaders at the company. e focus on looking at to -- two factors, changes in ad revenue and user changes. both of those were positive this quarter, so i don't think the changes in the management of the company are something that is impacting either of those factors. >> sarah, evan spiegel made it clear he knows people who work at the company want to hear from him more. do you think we will start seeing more from him? >> i think there's a lot of confusion of the company right now because of this redesign that you mentioned earlier.
it was supposed to be done by the end of the year, and now we are seeing it won't be fully rolled out until the end of the first quarter. there are clearly some things that are missing deadlines. there has been that management departure you mentioned. i think the company still has a lot to work out in terms of how it grows. there have also been a few rounds of layoffs recently at the company. emily: apple is pulling back on buying corporate bonds with its overseas cash as it prepares to bring the money home to the united states, this according to people familiar with the matter. about $157 billion of its $285 billion in cash is invested in corporate debt, making it a leading lender. investors in investment grade corporate bonds have been bracing for a market with fewer buyers since the new u.s. tax law was enacted late last year. coming up, has the #metoo movement gone too far? our exclusive conversation with facebook coo sheryl sandberg, and her new call to action.
emily: the winklevoss twins are not giving up on cryptocurrency, despite bitcoin plunging. >> we are long on the space. we don't sit there and watch the price day today. we are in this for the long haul, whether it is a decade or many decades. like i said earlier, we remember when bitcoin was $8, so as far as we are concerned it is all gravy. emily: the twins are early bitcoin investors and at one point their net worth totaled $1 billion each when digital currency was at an all-time high. they also told bloomberg television that increased regulation is good for digital currency.
as one of the cofounders of paypal, max levchin grew to be one of the most powerful men in technology, taking a center seat in silicon valley. in that position, his opinion around diversity and hiring has evolved greatly. i covered his story in my book "brotopia: breaking up the boys club in silicon valley," now out in stores. we caught up with him and talked about how things operate at paypal. >> i would describe my efforts at the time, with the benefit of hindsight, as generally unaware. i was not particularly concerned with the gender balance or any kind of balance. i was trying to hire good people as quickly as i could, and the one great source of excellent coders i knew was my alma mater, from where i came less than two years prior. so i was actively vacuuming up the best and brightest that i spent time with in school, which all happened to be met.
there were men of lots of diverse ethnic origins, but there were very few women even in my class, which was quite large, and the few that i did know all seemed to have switched majors from computer science to something else before they graduated. emily: do you think the idea of meritocracy is problematic in silicon valley? one of the things people who worked at paypal told me was this belief it was a meritocracy, when in fact you were hiring a lot of people you knew. >> meritocracy in a vacuum is not a bad idea. i think being able to say honestly that the people who are here have earned their spot is very powerful, saying you are the best of the best. the downside of meritocracy is if that is the only criteria on you choose, you select the people you know, because you don't know how to reach out into other groups, communities, other flavors of engineers. you're going to select from a fairly shallow pool. we ran out of candidates because
i ran out of male friends, and there was really not anyone else to recruit. emily: one of the most interesting parts of your story to me is where you talked about what happened at slide, where you said there were some br os, and there was a bro-y culture that developed, and you took action. what happened? >> what triggered my attention to all these things was really slide, where i started out with basically a neutral point of view, the culture, the shape -- the culture will shape itself, we will get some right people in. and while at paypal i was too young, we were going to quickly, and i didn't have enough of a worldview to understand what was being shaped. at slide, i had seen enough of these companies and i realized this was forming itself without any guidance, and that was not what i wanted to do. hard drinking, some of it sexist
behaviors, it was really not at all what i was comfortable with. and when i tried to gently steer it, it wasn't going the way i -- away on its own. that is when i started realizing, if i don't take matters very seriously and start pushing out and drawing some very bright lines on what is ok and what is expected, it wouldn't cure itself. emily: you have taken a different approach now at affirm. you are much more focused on hiring and promoting women. what are you doing differently at affirm that you didn't do at paypal? >> so the most important thing that we did at affirm was we took culture as a first-class citizen. there was never a moment when we didn't ask ourselves, what does this decision, what does this process, what does this framing do to our culture? how do we think of our culture? a firm was the first company --
irm was the first company -- this might sound embarrassing, but it was the first company where i wrote down our core values before we hired. all companies in the past, the culture emerged, and sometimes it was better and sometimes it was not. with affirm, i came in with the view that i have to control the culture, what i wanted to be when it grows up. even if we have no employees, i want to know it is a place i am proud of rather than when i am trying to fix. emily: how do we get more people, mostly men, to understand this problem and do something about it? what do you think needs to be done? what do ceos and investors need to do? >> so i think there's a bunch of things, and i don't know if i have an exhaustive list. think just being aware of the fact that it is a talent war, and the way you win it isn't just by saying i will go back to the same old well and get the same people out. the way to win it, at least what has worked for us, is you widen
the net you cast. that early leads to embracing diverse city and can you find -- diverse city and inclusion -- diversity and inclusion. you find diverse candidates in diverse places. emily: my conversation with max levchin, cofounder of paypal, now ceo of affirm. facebook coo sheryl sandberg has a new call to action in the wake of the #metoo movement, all about getting more men to mentor women. sandberg's lean in initiative has published a survey showing the majority of men are uncomfortable working with women were mentoring them, something sandberg calls unacceptable. we sat down for an exclusive interview to talk about her new #mentorher movement. take a listen. >> now is a watershed moment. #metoo has shined a light on the need to end sexual harassment, forever, and and that is critically important. it is also critically important, as you write in your book, that we get more women in leadership roles. today we are publishing a survey done by lean in and surveymonkey
that says that almost half of male managers in the u.s. are common worko activities with women, and it is the reaction to what's going on, men stop mentoring women. that is unacceptable, because we need more women in leadership roles, and women have long gotten less mentorship and sponsorship then men, particularly women of color. now is the time to invest more in women, not less. so #mentorher, which we are launching today, calls on all leaders to mentor women, and also to make access equal. our survey also shows that a senior man today is 3.5 times more likely to hesitate to have dinner with the female junior colleague than a junior male colleague, and five times less likely to feel they can travel with the junior female colleague then a male colleague. we have to make access equal. if you are not comfortable having dinner alone with women, don't do it with men. have lunches and breakfasts with
everyone. or have dinner but make sure everyone is behaving appropriately. what matters is that access for women is equal, because now is our time to invest more, not less, in getting more women into leadership roles. emily: you shared your own experiences with harassment, a hand on your leg under the table at a meeting, unwanted visits to your hotel room to the point where you had to call security. 25% of the people in your survey think the reports we have heard so far of sexual harassment are just the tip of the iceberg. do you agree? and what do you think is the next chapter here? >> i feel fortunate that everyone i have ever worked for has been not just appropriate, but supportive. and my next seconds -- sentenced to myself is that shouldn't be lucky, that should be basic. because every woman and man deserves a safe and secure workplace, and that needs to change. but in order for it to change, we need institutional, long ranging change.
so we need companies of all types, organizations of all types to adopt clear policies, policies that when reports are made, things are investigated, swift action is taken. we need victims to feel safe. no retribution, the legal support they need, the social support they need, and we need to really end the culture of complicity, where people look the other way and not feel responsible. we are all responsible for what goes on in the workforce, and importantly, we need more women in leadership. it is not a surprise to figure out that organizations that have more women in leadership roles have lower levels of sexual harassment and better work-life policies and perform at a higher rate. because more diverse teams perform better. so in this watershed moment, we need to make sure that we really, really continue to invest and get more women in leadership roles. emily: some people have complained that the #metoo movement has gone too far, that some of the stories that have
been told shouldn't be told, and this is more like a public lynching. what do you think? >> i think the question is not if it has gone too far, but far enough. because this can't just be a moment in time where people raise their voice. these brave women that have raised their voices want long-standing change, not just for the day or month, of the -- but for the years and decades. and that means we have to have the right institutional policies, and those policies have to include due process, investigation. things need to be investigated and swift action needs to be taken. and importantly, we need to end the culture of complicity. we need to end the process of looking the other way. it is all of our responsibility. emily: ed williams, the cofounder of twitter, told me in my book that he thinks if there were more women on the early twitter team early on, maybe online harassment and trolling wouldn't be such a problem, but they weren't thinking about this enough. they were thinking about great things that could be done with their products, not how it might
be used to send death threats. my understanding is also that when you got to facebook, you started asking questions about the content policies, and that may well be why facebook does a much better job of this than twitter. how do you think the internet might be different if women had been more involved and in more equal numbers building it early on? do you think online harassment and trolling would be the problem it is today? >> i think the data is super clear that more women in leadership roles in all industries have huge positive benefits. higher performance for companies, better work-life policies, lower levels of sexual harassment. and i think women play an important role in looking out for some of the gender-based harassment that women have long faced. i think facebook is lucky because our leader, mark zuckerberg, takes these issues every bit as seriously as i have. but do i think silicon valley would be a better place if there were more women running more companies? absolutely. i think every industry would be
a better place if there were more women running more companies, and more women in government. and when we fought to get here -- but women are 20% of the u.s. congress. and i think we often suffer from the tyranny of low expectations. i remember when women got 20% of the seats in the senate in 2012, and all the articles were like, "women taking over the senate." wait a second, 50% of the population with 20% of the seats is not a takeover, it is a gap. and i think we need to make sure that in this watershed moment, we make the long-standing change we need. no sexual harassment, ever, for anyone, and investing in women so that women get their share of the leadership roles. we are very far from that, but this is a moment where we can invest more to make it happen. emily: that was our exclusive interview with facebook coo sheryl sandberg. still ahead, with the bitter uber-waymo court battle playing
emily: this week, softbank confirmed it will take its japanese telecom operation public within a year, to separate the company's activity broadly into investing and telecom arms. speaking at a news conference, ceo masayoshi son said it will help him spend more time on longer-term, global corporate strategy, and focus more on dealmaking. travis kalanick took the stand this week during the uber-waymo trade secrets trial, and on day two, waymo lawyers went after kalanick, painting a picture of someone obsessed with winning the race for self-driving supremacy -- but they didn't necessarily get very far. joel rosenblatt covers the
atrts for bloomberg, and was the trial. >> this is his second day and waymo's lawyers came at him kind of hard, not as hard as you might expect, and then on cost cross-examination, uber's own lawyers were asking questions, which -- clearly, he was well prepared for. waymo, the big surprise to me was that waymo didn't come at him very hard. they really -- there were a lot of details that waymo dug up over the course of the litigation that are very troublesome for uber, and they really didn't ask travis kalanick about very many of those. that was a bit of a surprise to me. emily: does that make you think waymo doesn't have that strong of a case? >> initially, i was kind of wondering that, but as i puzzled through it, and as i stated in the courtroom after travis kalanick left, you got -- you saw what was going on. travis kalanick offered a lot of i don't knows, i don't
remember about a lot of the more difficult pieces that waymo asked, as you predicted. i should have taken a better cue from you. and then after he left, and i think waymo figured out that is what they will get from him. then after he left, a forensic expert, a computer forensic expert that has kind of evaluated the case, that evaluated the most damning evidence, came in and offered testimony about all kinds of data, and the technical issues, technical problems that uber has. and it got very damning. it got very problematic very quickly. and it was an interesting contrast to travis kalanick's testimony. emily: so what is next? hopefully fewer i do not recalls. >> yeah. there will be fewer of those. it will be interesting -- larry page is still up.
i think that is later. he is a quiet person. i have seen him testify before, and he has been a bit awkward. i think you will have to -- he will have to show up and be a bit better in court as a result of kalanick's good performance. it was a good performance for uber. so now we're going to see some very difficult evidence, technical evidence, and we are going to learn how deep into the weeds this jury is willing to get. i think that's the real question. it is always kind of a dicey proposition to guess what juries will do or what they are thinking. in my experience, juries have taken the effort to really dig into stuff, and if they do that, waymo's still very much alive. emily: that was bloomberg still rosenblatt. bloomberg's joel rosenblatt. still ahead, tesla's bear/bull standoff is only growing after the company's latest earnings report. we will bring you both sides, ahead. and a reminder, all episodes of "bloomberg technology" are now livestreaming on twitter. you can check us out weekly.
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♪ emily: welcome back to "the best of bloomberg technology." i'm emily chang. the tesla bulls/bear tussle isn't ending anytime soon, as the fourth quarter results had something for both camps. they shared significantly lower than expected cash burn, while bears noted the lack of an update on model 3 production and flat model 3 deposits. we dug into both sides with a managing director and senior analyst, who currently has a buy rating, as well as our editor-at-large, cory johnson. >> a company that has been borrowing a lot of money, taking a lot of customer deposits for cars that they can't build. we knew what the numbers were, but it is striking that a company that was once growing,
cars produced at that 60% to 70% year-over-year clip is now less than 1% growth in terms of the number of cars it can build. what we are hearing about the first model 3, i posted one on my twitter page that shows the real car guys looking at the car and the engineering and finding real issues. they can put their thumb right through the side on the trunk. on one side, they can barely see through the other side, and it looks really uneven. there were pieces of felt and things on the doors, it doesn't close quite right. glued onto the door covering. so they are clearly struggling with the production of this model 3. it is more than they can handle right now. what we see in the earnings release is a lot more promise s about production, as we always see, and a lot more borrowing and free cash flow numbers. emily: taking a look at tesla after hours on the bloomberg, shares not changed much right now. what do you think? are the things that core is
-- corey is talking about here a concern? >> if you look at the results, what you are seeing is real progress. they built 223 model 3 cars in in the third quarter, they built over 1500 in the fourth quarter, and based on the production guidance for the first quarter, they are going to build probably north of 15,000 vehicles. so if they can continue on this trajectory -- and i thought it was important that they reiterated their production guidance from the start of the year. you have a company that will grow revenues roughly 100%, to about $25 billion. very hard to find a multibillion dollar company growing at this rate. emily: cory, let's take a look at the bloomberg. production. tesla cars produced each quarter over the last several quarters. we are seeing it holding steady. what does that tell you? >> that is what they are saying, that producing 1500 cars in a
quarter and a couple hundred in the previous quarter isn't what investors thought they were getting involved in. i would be surprised if anyone believes the production guidelines, thinking they would produce what they said they were going to produce since they keep missing their estimates over and over again. i think the whole world wants this company to be a great success. we want great cars that don't burn a lot of fuel, that are great for the environment, that look cool and are safe and fun, the problem is tesla can't build them. emily: romit, do you believe it? >> no, i mean, just look at the numbers. they increase their production of the model by a factor of 10 three in the fourth quarter, and they're targeting to increase by another factor of 10 in the first quarter. >> but do you believe those numbers? are you going to sit here and say they will hit the numbers? >> yeah. we have these production numbers in our model, and if you look at our price target of $500, it is predicated on them growing revenues 100% this year.
we are in print with these forecasts. emily: what makes you so confident? this is a company and the ceo that has admitted it is facing production hell and has missed many targets. >> it's true, but you have to think about it this way. the world is moving toward electric vehicles, and tesla is really the only game in town, and will be for the next two years. where they get to 4000 units by or 5000 units, that misses the point here. you have a multibillion dollar company that is growing at a very significant rate. if you look at the reviews, the customer reviews of the model 3, and we have driven one ourselves, they are phenomenal. for most people it will be the best card you will ever drive. you see that in the backlogs. they have a backlog of over 500,000 reservations that continue to grow.
so it's a premium car in the right segment of the automotive market and all they need to do is get a couple percent, to gain a couple percent market share in the automobile industry and they are going to be doing more than $100 billion in revenue. and i think the stock will be quite a bit higher. emily: number incident managing director and analyst romit shah and our editor at large cory johnson. spacex has officially launched the world's most powerful locket. the falcon heavy lifted off from the kennedy space center tuesday to embark on its first test flight. it was carrying a red tesla roadster, on an endless road trip past mars. following the launch, spacex did something never before seen in space history -- it re-landed multiple rockets back on earth. two of the three 15 story boosters came back and landed upright at cape canaveral. they landed at the same time, side-by-side. this is a major milestone the company's quest to grow its
customer base and fund its vision of making life multi-planetary. coming up, after facing threats and harassment online, brianna wu decided to take which he -- what she knows about the tech industry and run for congress, to fight for the rights of online users in washington. we will speak with her, next. plus, former google vice president megan smith joins us to talk about the challenges surrounding diversity in the workplace and building a more inclusive culture. this is bloomberg. ♪
emily: over the last year, big tech firms stand accused of transgressions like selling campaign ads to shadowy russian groups and not doing enough to fight harassment and threats on their own platforms. brianna wu, who worked in the videogame industry and is now running for congress in the massachusetts eighth district is here to explain how she wants to enact change in tech. she knows from personal
experience how this role be trolls can be. -- how visceral the trolls can be. she also played a critical role in a chapter of my new book, "brotopia." >> take us back to gamergate. some people may not remember just how bad it was. it was a few years ago, and suddenly you have what seemed to be the entire gaming industry attacking you. >> it was truly harsh. the summer leading up to gamergate, what happened is the forces that became the alt-right found the playbook to silence any woman in the gaming industry that they didn't like. they would go after her career, they would critique her, send her threats, basically tried to get her fired from her job, and this was happening left and right to my friends. and then i realized that the men in our field were not going to speak out for the women that were being run out. i had many back channel conversations, asking them to do the right thing, and they wouldn't.
so what i learned during gamergate was i had to do the right thing myself. it led to -- there's no good way to have "law and order" episodes made about you, but that is what happened with all the threats i got. emily: you were getting threats on twitter and facebook. >> yes, yes, and in real life. absolutely. emily: physical threats. --people through a brick threw a brick through the window of my home. just a few days ago, i had somebody outside my new home taking pictures. emily: so you are still getting harassed. >> absolutely, absolutely. we had a thing with nolan bushnell losing an award this week for his sex is passed. this is the man that founded atari. -- sexist past. i spoke out about that, and the death threats and rape threats are back again. it is exhausting to deal with. emily: i do know that nolan bushnell issued an apology. >> he did. emily: one of the things i talk about in the book is, what if
women had been more involved in creating these products like facebook and twitter and the beginning. the cofounder of twitter thinks online harassment and trolling might not be such a problem, and might not be such a problem today if women had been on the early team. he said we just weren't thinking about it. we were thinking about the wonderful and amazing things that could be done, not how easily it could be used to hurl death threats. do you think having more women in the design of, let's say, twitter or facebook or reddit, that online harassment would not exist? >> i wouldn't say it wouldn't exist, because it would exist in different forms. but you know, if you don't have people at the table that have different problems, like putting their input into a product, it is going to be a worse product. like the tech industry creates products that work for a very small segment of the population, and it doesn't work very well for me. i would guess very well for you either. it's not just the harassment. there a larger business case to be made here. you know, in my industry, video games, women make up more than half of the audience of gamers these days.
we are a sliver of the people actually running game studios. and there is so much money we are leaving on the table. emily: what do you think the changes twitter and facebook have made? >> for me personally, i think twitter has done a lot of work that doesn't get credited. i see the filters they put in place that stop me from seeing the death threats, so i do appreciate that. i think they have taken steps, but they're still a long way to go. emily: i know that is part of your platform, helping to protect users. are there laws currently that if you get attacked online, there is actual recourse? is it illegal to do that? >> i have spoken with the world 's most preeminent legal expert on the subject, it is , but it is worth noting that the tools we have our laws written in the 1990's, and the world has changed a lot since the 1990's. so we need a congress that can come in and write those laws, and more importantly, fund
divisions of the fbi that can actually go look at these crimes and prosecute them. due to the freedom of information request, we have people that sent me the most explicit, horrific death threats you can imagine sent straight to the fbi, but they chose not to bring that to trial and prosecute those people. we need to, i believe, find a -- fund a certain division of the fbi that is going to look into this kind of extreme cases online and make them meet the justice system. emily: how big do you think the gaming industry would be if women have been more involved in creating the games? >> we would have better games. we would have much better games. do you know how bored i am with first-person shooters, where you go kill a million people and get an ending screen? we would have much better games. no. we would have better stories, beter characters, we would be making more money. the game industry is sick, and we are not in a great place right now. emily: how much progress has been made since gamergate?
>> none. i wish i could tell you that we had, and i wish i could say i stood up because i believed the men in our field would do the right thing and change, but we just haven't seen it. with the #metoo movement right now, the only consequences we have seen for that in my field is one editor-in-chief fired about it, one freelancer fired, and nolan bushnell not getting an award. that is not really groundbreaking progress. emily: so why should we vote for you? >> i think we need a generation of legislators that are born from technology. this is not bipartisan -- this is a bipartisan issue. cybersecurity is a huge threat to the country right now. do you remember the botnet that took down most of the information infrastructure couple years ago? that was two teenagers essentially doing that. we have to really double down on cybersecurity.
there's a litany of perspectives here are not being heard by our current congress, and we need to be leaders. emily: thanks to briand wu, congressional candidate in massachusetts. anna wu, congressional candidate in massachusetts. this week, we also heard from someone who had championed improving gender diversity in the workforce, the chief technology officer of the united states under president obama and vice president of google before that. megan smith joined us from washington. >> there's people from all backgrounds across the country who would love to be part of the tech sector. coming into town, cheyenne, denver, atlanta, we just get the word out and they were coming in. tech companies are showing up, people are showing up for the mentoring. a lot of people want in on these high-paying jobs that pay 50% more than the average american salary. there are hundreds of thousands of jobs open in america in every sector.
all companies are software tech companies at this point. emily: and yet gender representation in computing, women make up 25% of computing jobs, blacks and latinos are downright depressing, and women led companies are getting 2% of funding. why do you think that is? >> extraordinary sexism and racism, and we have kind of -- we have to evolve out of this culture -- i'm about halfway through your book, i know so many people in there. it's full of -- we got ourselves into this profile that receives funding. it is a huge challenge. as you said, over 90% of money from the venture world is going to men. 75% is going to silicon valley, new york, and boston. we were in columbus, ohio, which it is getting in one year what silicon valley gets in a week. so this is diversity of location, people.
we have so much talent in america. we have a field level team. i am encouraged because i saw so many extraordinary entrepreneurs from all backgrounds that we need to get behind. emily: i'm not sure if you have gotten through the google chapter yet, but i write in the book that google founders larry page and sir j brent focus on hiring women, like sheryl sandberg and susan wojcicki and yourself, and if you look at the numbers today, google's numbers are simply average, and they are ,acing a number of lawsuits including from the department of one labor about pay disparity. what do you think went wrong? what is the lesson in that? >> it is in all of the companies, we just had extraordinary bias built in. as we're asking questions, leadership really has to make this a very top priority. the leaders of all the companies care about diversity, but it needs to move from number 20 to number one to three. diverse teams make better
products, so what is a value and shareholder import for everybody. we really need to do it. there's a lot of stuff most companies are doing. we wrote a piece listing all the things that leaders can do, there are so many practices that would make a huge difference of -- if people would pick them up. most people do not know them. we really have a reckoning in the form of times up. it has been plenty of time, let's go. we have tons of history that brought us to this place, but none of us created this problem. but once we know about it, let's go. emily: discrimination is one thing, sexual harassment is another. what do you think about the criticism of the #metoo movement, that it has crossed the line? >> sexual harassment is rampant, and it is very clear from all the brave people speaking up that i think many men are in shock learning how rampant it is, and we really need women and men to come together and push forward. my sister-in-law, when she was a young engineer in the 1970's,
used to have to have a hustler centerfold above her lab bench as she was doing chip design, because that was normal. you open a book with a photograph that people were using to bench test the different screens, and it was a picture of a woman, but actually it was a picture of a completely naked woman from playboy. when i was at google, a story you don't know, when i found out about this, i asked the head of engineering if we could stop using it, and he said of course, and we immediately stopped. men and women can work together. none of us created a problem but it is long-standing. you are also right about ada lovelace. she wasn't even allowed to write a proper paper, the founder of algorithms. piece that a she was translating, a 20 page she had a 55 page thesis of what modern computing -- what would be this idea of algorithms. she's the founder of what has
become computer programming, and we need to know about her. i had never heard of her until i was at 10 downing street. emily: i am so glad to hear that story about how receptive management was. you mentioned some prescriptive things that companies can do, and i am curious, in your work, what are the top three things that people who want to make this a priority can do, whether their companies are big or small? >> i think what is exciting is there are very good things to do. for example, leaders just talking about it. one of the greatest moves was ibm, just prioritizing this part of the transition in the 1990's. he took those employee resource groups that everybody had, most companies had them. lgbt groups, women's groups, veterans groups, all these different groups, and he connected his executive team, which was not as diverse, to those employees, and created not only just talking once in a while, but really knowing.
and suddenly this voice of many more employees was coming out, and he asks those people very specifically how do they get more employees, more customers, and more suppliers from your community, how can i help you thrive at ibm? and it really made a huge difference. so the move there is a structured, broader conversation, and look for what is working and share that and make that broader. emily: thanks to megan smith, ceo of shift 7. jay y. leesamsung walks free after a year in prison for bribery. we had to seoul for the latest, next. this is bloomberg.
initial public offering. he had reportedly been lining up investors and was eyeing the jump to chief operating officer. he protested the ipo delay, and the decision to promote belinda johnson to coo above him. by the end of the meeting he was , out of a job. delivery hero is turning a corner after the food delivery startup reported 2017 sales exceeded company guidance. revenue caused the stock to jump as much as 6.5%. bloomberg news spoke to the company's ceo and spoke if delivery here has a sufficient -- delivery hero has a sufficient scale globally. >> yeah, absolutely. we're the leading platform in 35 markets globally, and this scale is still growing very fast and will continue to do so. emily: in south korea, samsung electronics heir jay y. lee is free to leave prison after being detained in a bribery scandal. sentenced andlly
put on probation for four years. he was caught in a corruption probe that brought down the former south korean president. we went live to seoul and spoke with bloomberg's stephen engle. >> this is like ripping off a band-aid before the wound is fully healed for many south koreans. they thought six months ago this cozy relationship between businessmen and politicians was finally -- they turned a new page on that. they thought that when the district court in august handed down the five-year prison sentence for various charges, including corruption and influence peddling with the now deposed president, but now after this high court, the appellate court, ruled yesterday that they would lower the sentence to 2.5 years, he can walk free, and he sure enough -- and sure enough, he walks free from the seoul detention center yesterday and gave a little statement. he read from a paper saying he apologized for not showing his best side.
the past year was a valuable time for looking inwards to himself. but at the same time, he is going back to the company, and it could be business as usual again for south korea. emily: so you do expect them to go back to the company and go back into an operating role? because we talked about the fact that samsung hasn't been affected, when you look at the earnings and the products they are turning out, the business has not been affected by the scandal, and he is going to slot right back in? >> we don't know if he will go back into the same kind of role he had. keep in mind, they put new division heads, including a new ceo. the former semiconductor chief at samsung -- they put new leadership at the end of the third quarter. and you are right, the company has been doing great. they had record full-year earnings, the fourth quarter was gang buster. it did not meet expectations from analysts, but still a very good number in chips and mobile phones and screens. we don't know if he is going back to the company, but keep in
mind, as you rightfully set at -- said, emily, at the top, other past chairman or heads of companies, including lee's father, have been convicted of various crimes, they were all given suspended sentences and went right back to their company. i think there will be a cooling off period, we will see how the public reacts to this. then going forward, the people we are speaking to are saying this could be bad for activist investors who perhaps want change within the company. they could go on a big, massive acquisitions spree. they could do what they want at the expense of the minority shareholders. that is the worst-case scenario , according to some of the analysts we have spoken to, could pan out to be. emily: bloomberg's stephen engle from seoul. that does it for this edition of "the best of bloomberg technology." we will bring you all the latest in tech throughout the week. next week, we have the former ceo of twitter joining us on monday. tune in every day, 5:00 p.m. in
♪ >> coming up on "bloomberg best," the stories that shaped the week in business around the world. volatility returns with a vengeance. >> we are on the verge of markets being a little bit disorderly. >> it is a global contagion. >> the first product is blowing up. >> does the week's wild ride signal danger ahead? leaders of finance and monetary policy offer insight. >> the correction was waiting to happen. >> there were people looking for buying opportunities. >> so far, this is small potatoes. >> the u.s. government stays open.