(soft upbeat music) >> Hello and welcome to this Cube Conversation I'm Lisa Martin. This is going to be a great conversation about corporate social responsibility, and I'm very pleased to have two great guests here with me today. Karen McCloskey joins us the director of internal communications and corporate philanthropy at NETSCOUT and Professor Sally Eaves is here as well the CEO of Aspirational Futures. She's also a professor of emerging tech and a CTO by background. Ladies welcome to the program it's great to have you on today. >> Thank you. >> Absolute pleasure. Thank you, great to join you both. >> We're going to get some great perspectives here. As I mentioned corporate social responsibility we're seeing that emerge across every industry and every company is really focused on that. Karen I want to start with you where tech companies are concerned we see corporate social responsibility really aligning with STEM and STEAM. Why is that? >> There is probably a couple of reasons, I sort of wrap it up as it's what employees do, it's part of their jobs, so they get excited about it and they want to share what they do with the next generation. And the other aspect that helps it align with tech is it involves the educational aspect. So we're teaching and we need up and coming students and employees and entrepreneurs with those skills. And the other part about STEM is when you think of it, it's typically K to 12 and then it rolls into college and it's working with students and the next generation. So the education and the pipeline or the education and the students speak to the pipeline aspect and then you add in people getting excited about their job and what they do and that's the employee engagement aspect so it really brings the two pieces together. >> I want to dig into that employee engagement in a minute but Sally I would like to get your perspective. Tell us a little bit about Aspirational Futures and then let's talk about the alignment between that and STEM and STEAM. >> Absolutely, so yeah, Aspirational Futures, is a non-profit kind of working across tech education and social impact and really looking at kind of opening up opportunities to the industry to a diversity of experience and using tech and data as a force for good. We do projects locally and across the world I'm kind of breaking down those barriers. It's going to be all about democratization of opportunity I would say. And in terms of STEM to STEAM that's where I see the journey going at the moment and effectively with that STEAM focus you're bringing the arts to an equal stage to the tech skills as well. So for me that's really important because it comes down to curiosity, encouraging people to get into the sector, showing what you can do, building creative confidence, emotional intelligence, those types of skills alongside the tech skills to actually build it. So it's that combination There's complimentary factors that come together. So for me STEAM is a great way to get holistic learning for life With the rate of change we've got at the moment kind of gives you that tool set to work from to be empowered and confident for the future. >> That confidence is so critical. >> Its really. >> For anybody of any age, right? But one of the things that we've seen that is in the inaugural ESG report that NETSCOUT just published is this digital divide. We've seen it for quite a while now but we also saw it grow during the pandemic, Sally from your perspective, what is that and how can tech companies help to fill that gap? >> It's a great point. I think one other thing that the pandemic did was made it more visible as well. So I think particularly we're working in certain spaces we've seen it more, but I think for everybody it's affected our daily lives in education from home, for example for the first time it's made gaps more visible. So absolutely huge to focus on that. And I think we're seeing it from the organizational perspective as well. We're seeing gaps around certain types of roles. We're seeing higher churn because of a lack of data literacy skills. So it's becoming something that's becoming a CUBE Conversation, you know, in day-to-day family life but in organizations across the world as well. And also it's about challenging assumptions. And it just a few weeks ago there was some research that came out at the University of Reading in the UK in conglomerate with other universities as well. And it was kind of showing that actually you can't make the assumption, for example, that teenagers that kind of call digital natures all the time actually have full confidence in using data either, It was actually showing there were gaps there too. So we've got to challenge assumptions. So literacy in all its forms whether it's data, whether it's financial is absolutely key and we've got to start earlier. So what I'm seeing more of is better outreach from tech companies and other organizations in the primary schools through to universities as well kind of internships and placements, but also another really interesting area that we do with the nonprofit is looking at data waste as well. You know, 90% of data there's archive isn't touched again after kind of three months, you think about the amount of data we're producing at the moment how can we reuse that as a force for good as a training opportunity? So let's think creatively let's be pragmatic address some of these data literacy gaps, but we have to do it at all levels of the community and also for adult learners too. That's usually important. >> Right, there's no, it knows no age and you're right that the visibility on it I think it can be a very good thing shining that light finally going we've got to do something. Karen talked to us about what NETSCOUT is doing. The digital divide is there you guys are really focused on helping to mitigate that. >> That's right. That's right. So as guardians of the connected world, that's our job with our customers and our products, but also with our people in our communities is getting people connected and how can we do that? And in what ways are we able to do that? And recently we engaged with Tech Goes Home which is based in Boston and they provide those first three pillars that everybody needs access to a device, access to the internet and skills to use that. And they work with families and students and they say their programs go from nine to 90. So they've got everybody covered. And what's exciting for us is it kind of falls from a volunteer perspective right in our wheelhouse. So they had to transition from in-person to distance learning with the pandemic and suddenly their program materials needed to be online and they needed to get people up and running without the benefit of an in-person class. What NETSCOUT volunteers were able to do was create those tutorials and those programs that they needed and we also have people all over the world and then we translated them into a bunch of different languages and they were able to then move forward with their programs. So Tech Goes Home and programs like that are really that first step in bridging the digital divide. And then once you've got the basics, the toolkit and the skills what else can you do? And Sally mentioned visibility it's what are the opportunities? What can I do now? I didn't realize there was a career path here, I need these skills to build a business help me learn more. So then there's that whole other aspect of furthering what they can do now that they have those skills and the learning and something like a hackathon might be a fun way to engage kids in those skills and help them go a little further with the tools they have. >> And NETSCOUT has done a number of hackathon programs last year I know you had an All-Girls Hackathon virtually in 2020. Talk to me about some of that and then I want to get Sally I'm going to get your perspectives on what you're doing as well. So our hackathons and I'll try and keep this brief because we've done a lot. There were actually brought forward as an employee idea. So that also speaks to our culture. It's like, hey, we should do more of this. We have partner with Shooting Star Foundation and one of our employees is one of their, or is their board chair. And the hackathons what they do and these are beginners hackathons. So we're talking middle high school and the theme is civic. So something good for society. And what we do is over a course of 12 hours not to mention all the pre-planning. When we had the in-person ones they were in our office they got to see employees up close run around the building to the extent that they could and build their project. And Sally I think you had also mentioned that creativity in that confidence. I mean what those kids did in a day was amazing. You know, they came in and they're all kind of looking around and they don't really know what to do. And at the end of the they had made new friends, they were standing up in front of executive judges, presenting their idea, and they all felt really good about it and they had fun. So I think it can be a fun impactful way to both engage employees because it's a heck of a team building experience and sort of bring students in and give them that visibility to what's possible in their tech career. >> And that confidence. Sally talked to me about hackathons from your perspective and what you're involved in? >> Absolutely, funny now I've just come from one. So I'm a Cop 26 at the moment and I've been involved in one with a university again, using that talent and building that empowerment around STG challenges. So in this particular case around sustainability, so absolutely love that and really echo Karen's thoughts there about how this is a reciprocal relationship, it's also super rewarding for all the employees as well, we're all learning and learning from each other's, which I think is a fantastic thing. And also another point about visibility. Now seeing someone in a role that you might want to do in the future, I think is hugely important as well. So as part of the nonprofit I run a series called 365 and that's all about putting visibility on role models in tech every single day of the year. So not for example just like International Women's Day or Girls in ICT Day, but every single day and for a diversity of experience, because I think it's really important to interview people for C-suite level. But equally I just did an interview with a 14 year old. He did an amazing project in their community to support a local hospital using a 3D printer. It makes it relatable, you can see yourself in that particular role in the future, and you can also show how tech can be used for good business, but also for good for society at the same time. I think that can challenge assumptions and show there's lots of different roles, there's lots of different skills that make a difference in a tech career. So coding could be really important but so is empathy, and so is communication skills. So again, going back to that STEAM focus there's something for everyone. I think that's really important to kind of knock down those boundaries, challenge assumptions, and drop the the STEM drop off we say make it a little bit more STEAM focused I think that can help challenge those assumptions and get more people curious, creative, confident about tech. >> I couldn't agree more, curious, creative and confident. The three Cs that will help anyone and also to sell it to your point showing the breadth and diversity of roles within tech coding is one of them. >> Sally: Absolutely. >> As might be the one of the ones that's the most known but there's so many opportunities to allow these kids to be able to see what they can be is game-changing, especially in today's climate. Karen talk to me about you mentioned in the beginning of our interview Karen, the employee engagement, I know that that environmental social governance is core to NETSCOUT's DNA but we're talking over 2,400 employees in 35 countries. Your folks really want to be engaged and have a purpose. Talk to me about how you got the employees together, it sounds like it was maybe from within. >> That's absolutely right. We have a to support employees when they bring forth these good ideas and the hackathon was one example of that. And the cool thing about the hackathons is that it leads to all these other community connections and people bring forth other ideas. So we had an in-person hackathon at our Allen office in 2019. Some of the employees there met staff from Collin College who were said, "Hey, we'd like to bring this hackathon to us." So then the employees said, "Hey, can we do a hackathon with Collin College?" It's so really it's employee driven, employee organized, supported by the company with the resources and other employees love to be part of that. And the event at Collin College brought out all those skills from the students. It was on climate change so relatively hot topic. And they did a fantastic job while they were there, but that employee engagement as you said, it comes from within. So they have the idea we have a way and a path that they can find what is needed in their community and deliver on that. And it really becomes a sense of pride and accomplishment that it wasn't a top-down mandate that you must go volunteer or paint this wall. They identified the need in the community, propose the project, get the volunteers, get the corporate support and go forth and do it. And it's really amazing to see what people do in their community. >> Well, it's incredibly rewarding and fulfilling but also very symbiotic. There's one thing that's great about the students or those that are from nine to 90, like you said, having a mentor or mentors and sponsors but it's also another thing for employees to be even more productive and proud of themselves to be able to mentor and sponsor those folks in the next generations coming up. I can imagine that employee productivity would likely increase because the employees are able to fulfill have something fulfilling or rewarding with these programs. Karen talk to me a little bit about employee productivity as a kind of a side benefit of this. >> Well, I was going to say during the hackathons I don't know how productive we are 'cause there's a lot of planning and pre-work that goes into it. But I think what happens is it's an incredible team building experience across the company. So you reaching out to executives hey would you be a judge for this event? And you know you're explaining what it is and where it is. And you're roping your coworkers into spending 12 hours with you on a Sunday. And then you're finding somebody who has access to a speaker. So you're talking to people about it it's outside your day-to-day job. And then when it's over, you're like, "Oh yeah, hey, I know somebody in that group I worked with them on the hackathon or I can go up and talk to this executive because we hung out in the hackathon room for X many hours on a Saturday." So it's another way to build those relationships which in the end make you more or help you be more productive as a whole across the company. >> Absolutely relationship building, networking, those are all critical components to having a successful career. Whether we're talking about STEAM or not. I want to unpack something Sally that you said in our remaining few minutes you talked about challenging assumptions. And I guess suppose I'm one of those ones that always assumes if I see a gen Z or they're going to know way more about how to use my phone than I do but you bring up a really good point that there are these assumptions that we need to focus on, shine the light on, address them and crack them wide open to show these folks from nine to 90 that there are so many opportunities out there, there are limitless out there I would say. >> Absolutely, it's all about breaking down those barriers. And that research I mentioned something like 43% of teenagers about kind of 16 to 21 years of age we're saying they don't feel data literate. And that assumption is incorrect so gain so making sure we include everyone in this conversation. So going as young as possible in terms of introducing people to these opportunities but making sure we don't leave any particular age group behind it's that breadth of engagement with all ages is absolutely key. But again showing there are so many different routes into tech as a career. There isn't one linear path, you can come from a different area and those skills will be hugely valid in a tech career. So absolutely challenging assumptions, changing the narrative about what a tech career looks like, I think is absolutely hugely important hence why I do that series because you want to see someone that's relatable to you, at your next level potentially, it's something you need a three steps ahead. It just makes it so important. So for me democratization of opportunity, breaking down barriers, showing that you can go around different ways and it's absolutely fine. And you know what that would probably you can learn from that experience, you can learn from mistakes all those things make a difference so don't be put off and don't let anyone hold you back and reach out for mentor. You mentioned sponsorship earlier on as well I think that's another thing as well kind of using the sphere of influence we develop in our careers and maybe through social media and can helping people along the way not just through mentorship but through active sponsorship as well. There's so many things we can do together. I think organizations are really listening to this is better embedding around DEI initiatives now than ever before and as Karen has been describing fantastic outreach into communities through hackathons, through linking up with schools. So I think we're getting a real contagion of change that's positive here. And I think the pandemic has helped. It's helped us all to kind of pause and reflect, what we stand for as people, as organizations all the way through and I'm really excited that we can really harness this energy and take it forward and really make a difference here by coming together. >> And that is such a great silver lining all of those points Sally that you mentioned. Karen, I want to wrap with you. There's great momentum within NETSCOUT I mentioned, over 2,400 employees actively so many people in the employee community actively engaging in the hackathons and the opportunities to show from nine year olds to 90 year olds the opportunities that STEAM delivers. So what's next for NETSCOUT, what can we anticipate? >> More hackathons, more focused on the digital divide. I just want to, as Sally was speaking, something occurred to me when you said it's never a clear path on the tech journey. I would love to be listening to one of those conversations 10 years from now and have somebody say, oh, when you were asked that question that you're always asked what got you on your journey? What started? I'd love to hear someone say, "Oh, I went to this hackathon once "and it is something and ever since then I got interested in it." That would be a lot of fun. I would love to see that. And for NETSCOUT we're going to continue to do what we do best. We focus on where we can make a difference, we go in wholeheartedly, we engage with volunteers and we'll just keep doing what we're doing. >> Excellent ladies what a great conversation. I love the lights that you're shining on these very important topics there. You're right, I talked to a lot of people about their career paths and they're very, zig-zaggy. Its the exception to find one, you know, that we're studying computer science or engineering, but Karen I have no doubt with the focus that NETSCOUT's putting that Sally that your organization is putting on things like hackathons, getting people out there, educated becoming data literate that no doubt that the narrative will change in the next few years that I went to this hackathon that NETSCOUT did and here I am now. So great work, very important work. I think the pandemic has brought some silver linings there to what your organizations are both doing and look forward to seeing the next generation that you're inspiring. >> Thank you so much. >> Thank you. >> Real pleasure. >> Likewise. For Sally Eaves and Karen McCloskey, I'm Lisa Martin you're watching theCUBE Conversation. (soft upbeat music)

>>mhm mhm >>Hey guys, welcome back to Los Angeles lisa martin. Coming to you live from cuba con and cloud native Con north America 2021. Very excited to be here. This is our third day of back to back coverage on the cube and we've got a couple of guests cube alumni joining me remotely. Please welcome parse our karate senior consultant, product marketing, Dell Technologies and David Noi VP product management at Dell Technologies. Gentlemen welcome back to the program. >>Thanks johnny >>so far so let's go ahead and start with you. Let's talk about what Dell EMC is offering to developers today in terms of unstructured data. >>Absolutely, it's great to be here. So let me start with the container storage interface. This is Q khan and a couple of years ago the container storage interface was still in beta and the storage vendors, we're very enthusiastically kind of building the plug in city of the different storage portfolio to offer enterprise grade features to developers are building applications of the Cuban this platform. And today if you look at the deli in storage portfolio, big block volumes. Nash shares s three object A P I S beyond their virtual volumes. However you're consuming storage, you have the plug ins that are required to run your applications with these enterprise Great feature speech right about snap sharks data replication, all available in the Cuban this layer and just this week at coupon we announced the container storage modules which is kind of the next step of productivity for developers beat you know uh in terms of observe ability of the storage metrics using tools like Prometheus visualizing it ravana authorization capabilities so that you know too bad moments can have better resource management of the storage that is being consumed um that so there are these multiple models were released. And if you look at unstructured data, this term may be a bit new for our kind of not very family for developers but basically the storage. Well there is a distinction that is being made you know, between primary storage and unstructured storage or unstructured data solutions And by unstructured we mean file and object storage. If you look at the cube contact nickel sessions, I was very glad to see that there is an entire stream for um machine learning and data so that speaks to how popular communities deployment models are getting when it comes to machine learning and artificial intelligence. Um even applications like genomics and media and entertainment and with the container storage interface uh and the container storage modules with the object storage portfolio that bill has, we offer the comprehensive unstructured data solutions for developers beat object or file. And the advantage the developers are getting is these you know, if you look at platforms like power scale and these areas, these are like the industry workhorses with the highest performance. And if you think of scale, you know, think of 250 nasnotes, you know with a single name space with NVIDIA gpu direct capabilities. All these capabilities developers can use um for you know, applications like machine learning or any competition intensive for data intensive applications that requires these nass uh scale of mass platforms. So so um that's that's what is new in terms of uh what we are offering, you have the storage heaters >>got a parcel. Thank you. David, let's bring you into the conversation now you've launched objects scale at VM World. Talk to us about that, what some of the key features and capabilities are and some of those big business benefits that customers are going to be able to achieve. >>Sure thing. So I really want to focus on three of the biggest benefits. This would be the fact that the product is actually based on kubernetes country, the scale of the product and then its ability to do global replication. So let me just touch on those in order. Mhm You said that the product is based on kubernetes and here we are cube concept. The perfect time to be talking about that. This product really caters to those who are looking for a flexible way to deploy object storage in containerized fashion, appeals to the devops folks and folks who like to automate things and call the communities a P I. S to make uh the actual deployment of the product. Very simple in turnkey and that's really what people turn to kubernetes for is the ability to spin things up when they need them and spend them down as they don't and make that all on commodity hardware and commodity, you know, the quantity pricing and the idea there is that I'm making it as simple and easy as possible. You're not going to get as much shadow I. T. You won't have people going off and putting things off into a public cloud. And so where security of an organization or control of the data that flows with an organization is important. Having something that's easy for developers to use in the same paradigm that they're used to is critical. Now I talked about scale and you know, if you have come to me two years ago I would have told you, you know, kubernetes, yeah, containers people are kicking it around and they're doing some interesting science experiments, I would say in the last year I started to see a lot of requests from customers um in the dozens, even 200 petabyte range as it relates to capacity for committees and specifically looking for C. S. I and cozy with this. This this is the the object storage implementation of the container storage interfaces. Uh So skin was definitely there and the idea of this product is to provide easy scalability from the terabytes range into the multi petabyte range and again it's that ease of use, ease of deployment because it is kubernetes basically because it's a KPI driven that makes that possible. So we're talking about going from a three night minimum to thousands of nodes. and this allows people to deploy the product either at the edge or in the data center um in the edge because you can get very small deployments in the data center to massive scale. So we want to provide something that covers the gamut. The last thing I talked about was replication. So let me just touch upon what I mean by that uh when people go and build these deployments, if you're building a deployment at the edge of an object scale product, you're probably taking in sensor data or some kind of information that you want to then send back to a data center for processing. So you make it simple to do bucket based replication. An object, sorry object storage based replication to move things to another location. And uh that can be used either for bringing data back for analytics from the edge, it can be used for availability. So making sure that you have data available across multiple data centers in the case that you have an outage. It could be even used for sharing data between developers in one site and another site. So we provide that level of flexibility overall. Um this is the next generation object store leveraging. Dell technologies number one position in object storage. So I'm pretty excited about >>and how David is object scale integrated with VM ware software. Stop give us that slice and dice. >>Yeah, and that's a good question. And so, you know, we're talking about this being a Kubernetes based product, you can deploy it on open shift or we integrate directly with VM ware cloud foundation and with Tansy, which is VM ware's container orchestration and management platform. I've seen the demo of the product myself from my team and they've showed it to be did all of the management of the product was actually done within the V sphere Ui, which is great. So easy to go and just enter the V sphere. You I installed the product very simply have it up and running and then go and do all of your management through that user interface or to automate it using the same api is that you used to through VM ware and the 10 Zoo uh platform. >>Thank you, paris are back to you. Security is a big theme here in kubernetes. It's also been a big theme here. We've been talking about it the last three days here at cop con. How does Dell EMC's unstructured portfolio offer that necessary cyber protection that developers need to have and bake that into what they're doing. So >>surely, you know, they talk about cybersecurity, you know, there are different layers of security right from, you know, smarter firewalls to you know how to manage privileged account access and so on. And what we are trying to do is to provide a layer of cyber defense, right at the asset that you're trying to protect, which is the data and this is where the ransom their defender solution is basically detecting any patterns of the compromise that might have happened and alerting the I. T. Um administration about this um possible um intrusions into their into the data by looking at the data access parents in real time. So that's a pretty big deal. Then we're actually putting all this, you know, observance on the primary data and that's what the power scale platform cybersecurity protection features offers. Now we've also extended this kind of detection mechanism for the object data framework on pcs platforms as well. So this is like an additional layer of security at the um layer of uh you know where the data is actually being read and written. Do that's the area, you know, in case of object here we're looking at the S. Three traffic and trying to find his parents in case of a file data atmosphere, looking at the file's access parents and so on. So and in relation to this we're also providing uh data isolation mechanism that is very critical in many cyber recovery processes with the smart absolution as well. So this is something that the developers are getting for like without having to worry about it because that is something implemented at the infrastructure layer itself. So they don't have to worry about you know trying to court it or develop their application to integrate these kinds of things because it's an it's embedded in the infrastructure at the one of the FBI level at the E C. S A P I level. So that's pretty um pretty differentiating in the industry in the country storage solutions. I'll get. >>Uh huh. Yeah. I mean look if you look at what a lot of the object storage players are doing as it relates to cyber security. They're they're playing off the fact that they've implemented object lock and basically using that to lockdown data. And that's that's good. I mean I'm glad that they're doing that and if the case that you were able to lock something down and someone wasn't able to bypass that in some way, that's fantastic. Or if they didn't already encrypted before I got locked down what parts are is referring to is a little bit more than that. It's actually the ability to look at user behavior and determined that something bad is happening. So this is about actually being able to do, you know, predictive analytics being able to go and figure out that you're under attack. There's anomalous behavior um and we're able to go and actually infer from that that something bad is happening and where we think it's happening and lock it down even even more securely than for example just saying hey we provide object like capabilities which is one of the responses that I've seen out there from object storage vendors >>can you share with us. Parts are a customer example like walk us through how this is actually being used and deployed and what some of those business outcomes are. >>Yes lisa. So in terms of container realization itself, they have a media and entertainment kind of customer story here. Um Swiss TXT um they have a platform as a service where they serve their customer base with a range of uh you know, media production and broadcasting solutions and they have containers this platform and part of this computerization is part of their services is they offer infrastructure as a service to you know, media producers who need a high performance storage, high performance computing and power skill And Iceland have been their local solutions to offer this And now that they have containerized their core platform. Well you see a sign interface for power skills, they are able to continue to deliver the infrastructure, high performance infrastructure and storage services to their customers through the A. P I. And it's great to see how fast they could, you know, re factor their application but yet continue to offer the high performance and degrees enterprise grade uh features of the power scale platform. So Swiss Txt and would love to share more. Keep it on the story. Yeah. Hyperlink. >>And where can folks go to learn more about objects scale and what you guys are announcing? Yes, particular. You are a website that you want to direct folks too. >>I would say that technologies dot com. And uh that's the best place to start. >>Yeah, I would go to the Delta product pages around objects should be publicly built. >>Excellent guys, thank you for joining me on the program today. Walking through what how Dell EMC is helping developers with respect to unstructured data, Talking to us about objects skill that you launched VM world, some of those big customer benefits and of course showing us the validation, the proof in the pudding with that customer story. We appreciate your insights. >>Thank you. Thank you lisa >>For my guests. I'm Lisa Martin. You're watching the Cube live from Los Angeles. We're coming to you from our coverage of coupon and cloud native on North America 21. Coming back. Stick around. Rather I should say we'll be back after a short break with our next guest.

by from Las Vegas it's the cube coverage AWS executive summary brought to you by Accenture hello everyone and welcome back to the cubes live coverage of the Accenture executive summit here at the Venetian in Las Vegas part of aw reinvent of course I'm your host Rebecca Knight we have two guests for this segment we have Leandro Nunez he is the vice president product development at MasterCard thank you so much for coming on the show thanks for having me and Christine Leung she is the managing director Accenture blockchain and biometrics thank you so much you so sustainability is a hot topic in the industry too in all industry today and especially here at AWS reinvent I want to talk to you about circular supply chain which was an idea that germinated in your brain a couple of years ago but it's really just sort of launched a year ago tell us more about why you started Cs sure we started this actually because a couple of things I we drink coffee every single day and we go into every coffee shop and we think about well you know you see packets saying this is my single origin coffee this is I pay extra for this and it's sustainably grown and yet you see news saying that you know the rain forest is being burnt down and animals are being killed and so about two years ago I looked at this and I thought wow you know how do I know this is really sustainable what I'm drinking the extra five books that I'm hanging at my coffee shop is it really is it really sink origin is it really going to the right people is it really killing the orangutans and the rainforest and then I see a statistic success well for every coffee a cup of coffee that we drink a square inch of rain forests get burnt down and I mean I drink at least five cups of coffee a day and working actually with MasterCard at the time I'm doing a and still do actually doing a lot of work with MasterCard in around identity and biometrics and I thought well you know how can we combine some of these capabilities we have with blockchain identity to say to put our money where our mouths is to change incentives as the base of the pyramid where you know performers produces smallholders if I can say to them that I really won't care but you don't burn a fat forest out that you produce in a good way and they just tried to survive they're not bad people if they're just hand-to-mouth but if they we can say right will hate you more as consumers and we know it's definitely going to that right person then maybe we can help to change some of you know and not have the rain force and don't have my guilty cup of coffee right so even if we don't drink quite as much coffee as you we are as a as a group consumers are more socially conscious than they ever have been what are some of the statistics here that people just care more about this stuff in general and they're willing to pay a premium for it so for example the green trade is estimated and this came out for Unilever at two trillion dollars a year by the by next year actually a growing statistic and let's just see I mean more and more on social media or literally you know every platform that you can see sustainability is a huge topic with you know sort of the the recent sort of UN climate discussions I mean it's this week with next week we're in Madrid this a big topic that we should all as a responsible consumers care about so Leander what do you see as the benefits of CSE to to small actors well it's a great point because when you see that just think about it do you usually say a lot about consumers in the big brands and now we're protecting the big brands but just think about the sourcing side of the supply chain right the small communities the ones that are growing the coffee the ones that are the farm the farmers over there or the fishermen now these ones are there's meaning for a while they're just been because it squeezed by the whole supply chain it's but the whole business right you think like let's remove a little bit of their margin let's put in something else now when they have the circular supply chain because consumers and this new generation is so interested in knowing where the product comes from you know if you're then doing the right thing now it has a change that you can pay them back it's all about come up with incentive model that's why we should in a MasterCard right when you create a network like that which the blockchain solution is a big network so how we can gain traction how we can gain adoption one thing is you need to establish incentives through all of the parties that you have at a network so if you're just taking care of the brand and they're gonna say bran mandate to your suppliers that needs to do that this is not going to work what it works is what is the incentive the farmers gonna have what's the sourcing so we don't mean it so don't don't you think the farmers wants to do the right thing of course they do but do they have incentives for that if it's just a letter if you're just someone mandating they're not gonna do it but if you come with the idea of hey I pay you back your your coffee or whatever your products you're doing we can help you can have a premium so we can it's going to be sustainable to your family as well your business can be more profitable so they you see okay I want to be part of it so it's creating incentives for people to for the for the for the producers themselves to grow things more sustainably it's all about that it's not only them and then you go to the suppliers you go to the logistic transportation companies how do you creative you give them the visibility they always complain about how can I have the visibility of my supply chain why can you create the visibility you give the transparency that you create the trust in and if you ask people in a supply chain business what the big problem is supply chain is trust they don't trust each other but they have to trade things and they don't trust each other you do business with people you don't trust every single day it's not a good thing so if we bring this visibility you facilitate this and they see there's an incentive to be also part of it so Christine what are the kind of technologies that are bad that are that are powering the CSC and and how are we how does it create that trust i cultivate that trust um and Leandra is for Honor's and in terms of trust it's about trusting the people but trusting the data and trusting the entities that I put in some of this data there are components of blockchain of course the surface the traceability aspects of the any of the product blockchain also helps with the decentralized identity capability that we've put in we've made also biometrics for the for the individual but this is optional depending on how you know in terms of using it very responsibly payments of course digital payments and you know having the ability to actually direct payments through the MasterCard rails and then of course with you know the power of AWS and then hosting on the cloud and be able to have that anywhere and the different aspects of including a iot so we know that let's say for fisheries this product is actually really came from displays you know the sensors we know that it's kept the right temperature we did that therefore you know insurance payers and things like that would be right and tracked all the way through and knowing that the product is really fresh and really kept you know intact throughout the journey so a whole bunch of different technology totally great projects with blockchain only would tend not to succeed and the reason is because you need to come up with you need to nurture the ecosystem so how you bring the IOT yes to the table how you doing you know payments how you bring AI so you get at all these solutions together and then you create what this visibility that's trust we need so companies are trying to do one side you know which is just a blockchain they're not going anywhere the reason that I like it our alliance with Accenture and AWS is because we know that we needed to do this end-to-end and this can be broader than just talk about watching and it's about the people because you have the ultimate is the consumer and the the base of pyramid producer both have identities and if we are able to say this is the identity of the person I can then help to influence their their livelihoods so it's putting a real face on the supply chain for the end consumer I mean at a time where consumers are demanding more transparency in the supply chain demanding to know more about the source of the goods that they put the products that they're buying what has been the reception and and what are you hearing back I think we've had great receptions we launched at Davos earlier this year we've had a huge amount of interest and now slowly we're gaining sort of traction in terms of getting the pilots I'm putting them in place and I think it's also something that we'll need to UM in initially it's a little bit of Education understanding well how does this actually all work you know is it just traceability is it just identity well it's actually all those things are understanding the use cases and embracing that there are it's not just one way of doing something and this is really a concept that embracing better business through better technology and innovation can actually be more sustainable and responsible businesses so the traction has been great and we've had a we have a number of pilots in the pipeline yeah well we will in the past I used to believe that some things we should stop doing or stop eating because of the sustainable part of it and I have learned that it's not the case you can do the right thing you can make sure that they're doing the right thing and you can eat with no guilt that's why everybody wants right so so this is this is the the type of you know visibility when to give from the consumer side but not from the from the company side of I like the brands are ok I'm safe because brands they have a very good visibility from the distributor on but they don't know what's going on behind that you know products the this is so globalized now they so fragmented you know it comes from so many different places Princeton that there's no way that they can control it if they don't have this you know there's this view so that's why we're trying to bring together so when so when this when this fully does launch and a consumer is then seeing the face of the coffee grower in Brazil or in Kenya and saying ok so then what what happens then how are they able to to to incentivize that farmer to do the right thing as you say there's a digital payment channel of powered by monster cop that you can then so sue speaks if the farmer donate money and actually say well there's multiple ways of doing things right so for example if I'm the consumer scanning the the product and there is we have a whole lego city built upstairs that can show cases and say right this is how it works and you know scan the product and what I can save right I want to be able to donate an extra dollar for this farmer because I really like the fact that you are sustainable and not burning the rainforests and protecting the orangutan or elephant so the the the birds so great I'm going to give you an extra dollar so this is how it's going to work on the app and there are other consequences well there's so many organic products nowadays they're not really organic so you can prove with the organic so the farmers would feel more motivated to really grow that as a organic product because there is a premium so it's not only the the tea that you give it to them but also the fact that you can create a premium price situation that will motivate others to do the same so brands would grieve the differentiator farmers would feel like okay if I do this way how to get will be more profitable and consumers will benefit from that from a real organic or a real product what the sustainability you know behind it consumers can trust more so how do what are some of the I mean this is such a cool concept what is what are some of the biggest challenges in in really launching and making it a reality what is keeping you up at night I think some of it is actually just education and getting it out there and understanding that this is it's a lot of stakeholders so from consumer brands all the way down to the the smallholder providers so it's a lot of people to link up and a lot of organizations to talk to so some of it is just getting through that process and getting people to understand and also actually hopefully we'll get consumers understand that this is something that they will want to do yeah and that this whole integration I Christine said it's in it's important right so you understand all the key stakeholders don't need to beat all of them at the beginning but at least the key stakeholders in the supply chain and how you can create this business incentive in a dissented model for them to be part of that so it's a mapping exercise which is we are getting there and in intestine we gain adoption and and if you gather the consumer side doing this as well so it creates a network effect and that's why we try to do in a MasterCard assist in our DNA like building networks right everybody knows that so we wanted to bring this to you know >> to the ecosystem to contribute okay so how can I create a network effect that they can it exponentially scale you know for for the whole market share for the whole you know marketplace so I want to ask you a personal question you've been in technology for a really long time time and now but in terms of the kinds of projects you've worked on and the kinds of ways you're thinking about technology and then this particular project at a time where climate change is a monumental challenge the fate of our planet really hangs in the balance with what with the decisions that we're making policymakers and consumers are making today wait how what is it like to work on this kind of products a great question I yeah I was for this all these years so go to work with this business mentality you know we're gonna make more money for someone else we're gonna work for a big company and see some friends and family doing things for the society and say oh my gosh there's something like that and now I feel like I can do both right we're talking you know it's a business it's it's a great solution but makes it so well for the you know for the whole society you know it makes me feel really every day going to work and say oh this is what I want to do you know this is so cool I mean I'm helping I'm benefiting myself as I go to the supermarket I'm gonna be the one who's gonna tip the farmer I'm gonna be the one who's gonna check where my shrimp comes from right so so I'm doing this for my family my kids are like I hope they can live in a better planet that know exactly where the products come from and the family that you have it's not even been born yet so that's the other generation that's amazing really doing things that we never know thank you so much Lee under and Christine for coming on the cube a really fun and fascinating conversation thank you thank you I'm Rebecca night stay tuned for more of the cubes live coverage at the Accenture executive summit coming up after lunch [Music]

prepare for the extraction point we've been briefed on all the important stories and events in the world of emerging information now it's time to extract the data and turn it into action live from the silicon angle studios in the heart of Silicon Valley this is extraction point with John furrier okay we're live back in the palo alto studios i'm john furrier for the extraction point we extract the signal from the noise and my special guest today i'm excited to have here is Paul Martino who is the founder of aggregate knowledge and also storied entrepreneur in Silicon Valley who now lives in Philly with his family comes out here Paul is known for among other things being a great entrepreneur tech geek loves tech loves to build build startups started one of the first social networks with Mark Pincus called tribe started his own company funded by Kleiner Perkins with his partner Chris law called aggregate knowledge which is booming and doing great and now more famous for being the first round investor in zynga company that is exploding with revenue as Kleiner Perkins said is the of all their portfolio comes in the history more than Google's made more money faster than anybody Paul Martino welcome to the extraction point great to see you John as always awesome to see you first I got to start with your now I forgot to mention that you're actually running a venture firm so in addition to being famous with Zynga you're running bullpen capital so first give the folks out there an update and first confirm or deny you were in the first round of Zynga or not yes the the first round of Zynga there were several institutional investors and several individual investors Morocco me Reid Hoffman were individual investors Avalon Union Square accelerator ventures and foundry where the institutional investors in that first round Peter was Peter Thiel yeah Peter was also an individual investor in the first round so that's officially the first round investors of Zynga we have clarified that and that is now hot on the books but now you're you've been successfully founded aggregate knowledge you know have a CEO running that what's the update with aggregate knowledge yeah so great guy runs that company as a guy you need to meet and have on this show Dave jakubowski aggregate knowledge really went in a direction where all of the focus was on providing data and analytics to the major ad agencies and John John Nelson who started organic one of the first agencies is now the CEO of Omnicom digital joined the board and I said look we got to get a guy who's an ad heavy in here and jakubowski was previously the GM of microsoft adcenter and had a senior position at specific media and we brought him in and he's just been kickin butt our greek knowledge has really really made a significant significant contribution in the area of data and analytics for these major agencies and he was very able to bring in a crew of people know exactly how to run that business so you're a big fan of big data then mm-hmm oh yeah we just had a big special yesterday on Big Data mentioned about it so that's cool we're going to get into a lobbyist I was just kind of get the small talk out of the way here your current role is the founder of bullpen capital right so bullpen to me I'm a baseball not I love baseball bullpen means you go the bullpen for relief right yep thank God close the game out hopefully or mid-innings relief so tell us about what bullpen is it's a special fund as I know from reading talk to you to target an expansion of this new seed and explosive new funding environment Bryce plain force right I'll tell you how we got the name at the end too so here's what happened I've been investing with a lot of the so-called super angels and that's kind of a misnomer because they really are actually in some cases actual small venture firms to I've been investing with a lot of them since they got off the ground Josh Kopelman from first round is one of the first investors in aggregate knowledge mike maples was an early advisor to the company I've known Jeff claw be a who run soft tech since he was at Reuters and with the late 90s and so I've worked with these guys done a lot of investing and we were me and my buddies Duncan Davidson rich Melman were sitting around over summer of 09 doing a little bit data analysis right another big data assignment we realized that as more and more these seed funds got created they were creating an inventory of companies that weren't quite ready to go to the traditional venture guy but we're also difficult to bridge from just the seed guys because the see guys at that time didn't have really big funds so wait a minute you've got some really good companies here is to clarify the for the folks out there seed funds don't traditionally have follow-on big funds like a VC firm right that's what you're referring to yeah they tend not to have as bigger reserve so if a big fun writes you a five-million-dollar check and you stub your toe you can probably get some more money to get through the hardships but a lot of the the new super angel funds or smaller funds and you get a five hundred thousand dollar check and if you need another five hundred thousand dollars it can frequently be very difficult because they make so many investments with smaller reserves yeah and so you've got dave McClure clavey a maples first round capital true ventures made the first round truevision more traditional VC then say dave McClure and mike maples and claw VA they're out doing some really good work out their funding really good company spending a lot of time I know I've seen them working their butt off yeah they need some air support right they need some cover the little bullpen is that that's you come in and say hey for your stars they're going to rise up yep and so that's exactly right so what happens is here's what the analysis we did turned out of their portfolio thirty percent of their portfolios in aggregate quickly are really exciting companies you know and they quickly go up to a venture auction and the guys and sandhill rotor excited about it about twenty percent of their deals you know that they don't like too much it's kind of just floating there yeah that you know the entrepreneur wasn't a fit that team didn't execute that left fifty percent of their deals in the middle which they kind of were too early to tell as Mike maple sometimes says they were in an extended learning and discovery phase they hadn't quite figured out what their models yeah and this de pivoting stuff's going on right now the Marcus changes turbulence so these guys are right and so you look you look at some examples and you go well wait a minute for every zynga that goes up into the right immediately go look at the stories of chegg and modcloth and etsy and quite frankly the in-between round on twitter and for everyone Zynga that you find that just hits it out of the park the right way there were four to five companies that went through that hard intermediate round that it was difficult in the environment where you have only a potentially thinly capitalized seed fund in front of you go get through that difficult point I said guys you need a bull pen and way we came up with the name is I'm involved in a deal with Chad Durbin who used to pitch for the Phillies and now as a relief pitcher for the cleveland indians and he was in our office and we were talking about this idea and Chad said yeah it's kind of like you're building a bullpen for the seed guys I'm like that's exactly right that's the name we got to go with and so fortunately I was involved in in this company called showcase you which is actually cool cited suppose for recruiting for college scholarships for a collegiate athletes right you're a high school student you throw 80 miles an hour left hand it and you're in 10th grade how do you figure out where the right scholarships are so Durbin and some of the Phillies where the original investors in this company called showcase you it's actually a cool company as the combine work out online basically fries for the high school kids and because the high school kids sometimes are in tough geographies to get to you're in you're in a small rural area in Nebraska how do they find out that you're the guy who can throw 89 miles an hour great so I mean this VC market so basically you're referring to with bullpen right now is an innie and you've been in our sprayer so you live through classic you know classic financing your last company financed by kleiner perkins and a tribe i forget who financed tribe yet Mayfield was the lead investor may feel again another traditional VC firm all tier 1 VCS although may feel people are you now is slipped a little bit that's some of their key partners who have slipped away but they've all moved on what you're really referring to is there's a new dynamic of entrepreneurship going on now we're now there are some break outcomes that just need a little bit more time to mature in the old model they just be kind of closed down the VC guy would be on the Bora has just a pain in the ass and you know really not growing and do another round it's they get kind of lazy in a way if they got 10 10 boards are on so with the super angels and the fact that does take a lot of cash to start a company you've got more deals getting done so the the Y Combinator the Dave McClure's and chef claw va's in the mike maples and sometimes SiliconANGLE labs which we're doing here is telling you about right we're funding companies the more [ __ ] is funded a better will you come in as you keep them alive longer just wreck the pivot possibly that's right and so what happens is right now the venture industry is being disrupted the same way the venture industry has funded companies that have rupted other industries they are being disrupted in the exact same way and the disruption happened from below as always happens it started in seed stage now in order for the disruption to go all the way through there need to be companies that come after seed stage investors that have the same philosophy and mentality pro entrepreneur easy terms operating people who get their hands dirty to get deals done you need that in the B stage and in the sea stage and here's what our prediction is John our prediction is a few years from now there'll be a company that comes after bullpen that does series c and series d financing or mezzanine financing but the same philosophy is bullpen and then DST s at the end of that chain and you can imagine building companies that go all the way to liquidity that you got money from maples first bullpen second this unnamed company third and you went quasi-public with DST and you've bypassed the entire venture scheme entirely and the entire institutional public markets complete liquidity wealth creation companies creating jobs I mean this is new paradigm I mean this isn't amazing I mean this is a potentially amazing point in the history of us finance the idea that you could go two billion dollar outcomes by passing not only the public markets on the back side but the traditional venture ecosystem on the front side I mean that is a disruption if ever there was one amen I mean hi and with you a hundred percent the other some people who will argue regulation is if market forces first of all I'm a big believer in market forces so I think what you're doing is clearly identifying an opportunity that dynamics are all lying lining up entrepreneurs are validating it and so but the questions are regulations I mean first of all I'm anti-regulation but as you start to get to that liquidity and some are arguing I even wrote a blog post about saying hey you know basically Facebook's public merry go buddy what do you say to those guys this is the change in the history of this financial asustor we want the government regulating this yeah so my co-founder of both i started bullpen with two really good guys Duncan Davison who was the founder covad was advantage point for years asking them to buy government regulation would go bad i mean what happened then because of the I lack warsi like Wars but only that the some extent covet doesn't exist unless the telco 1994 happens through in some ways a creation of the government to good point it's social right but but think about it the arbitrariness of government as opposed to a well-thought-out centralized plan so anyway so Duncan sometimes uses that phrase you know he talks a lot about the way in which the government you know that the worst thing you can ever hear is I'm with the government I'm here to help right i mean that's about the way it goes but his point around the the the new quasi public markets is money we'll find a way yeah and when sarbanes-oxley happens and it's tough to go public and you're a CEO like Pincus who's running one of the great all-time companies in Silicon Valley at Zynga he says you know going public is not an entrance is not an exit it's an entrance that's that's this quote what why would I why do I need that headache I mean I was just talking with Charles beeler who sold for the hell dorado he sold to compel in one of his investments to dell for over a billion dollars and and 3 para nother firm he wasn't on that one that was sold to HP during storage wars he's talking about the lawsuits literally this shakedown of immediately filed lawsuits you know you could have got more money so this is this public markets brutal no doubt no doubt i think what you're doing is a revolution I'm all excited about this new environment again anything with his liquidity wealth creation with the engine of innovation can be powered that's fantastic look back the startups okay get back to where you're playing yeah the history of Silicon Valley was built on the notion of value add some have said over the past 10 years venture capital has not been truly value add and some were arguing value subtract and then just money so what you're talking about here is getting in and helping me stay alive what's the value added side of the equation mean I know that a lot of these folks like like like ourselves here it's looking angle McClure Xavier and maples and true ventures they roll their sleeves up first round capital right before we can only provide so much it kind of expands right you guys are filling in the capital market side right how are you guys helping out on the value add because a lot of those companies may be the next Twitter right you've got a bridge to finance that's right allow them to do the pivot or get the creative energy to grow and they hit that market if they hit that hit it going vertical you got it kind of sometimes nurture it you guys have a strategy for that talk about the so let me let me give you my perspective on that so I think 10 years ago when you're starting a company the name of the venture firm was more important than potentially the partner on your board ten years later the name of the firm matters much less and it's the name of the partner and it's the operating experience that that partner partner brought to bear and you go talk to the 24 year old entrepreneur verse the 34 year old entrepreneur the 24 entrepreneur 24 year old entrepreneur wants a guy like you or a guy like me on his board he wants have been there done that started a company was a CEO exited it got fired hired people fired other people scar tissue scars knowledge experience exactly and if a good friend of mine who's in the traditional business I'll leave his name out of it he sometimes says the following phrase the era of the gentleman VC is over and what he means by the era of the gentleman VC is over is you know if your background is you were a junior associate who came in with a finance degree in an MBA and it never started a company you're not going to get picked by the entrepreneur anymore in 10 years from now almost everyone in the business is going to have a resume that looks more like a Cristal Paul Martino a mark pincus that you name all the people who we've started our companies with if there's a lot more hochberg with track record certainly with with the kind of big companies in the valley just in our generation yet started with netscape google paypal right now i want to see facebook is and then now's inga either the ecosystem is just entered intertwined I mean for every failure that spawns more success right so that's right that's a Silicon Valley way yeah well a tribe was tribe was a perfect example of a successful failure tribe was not a successful outcome but it was in many ways a very successful way to actually pioneer what became social networking you know investments got made into Facebook as a result of that Zynga in aggregate knowledge were both the outcrops of what was learned to some extent the original business case of Zynga was remarkably simple there is a ton of time being spent on social networks and after you get done finding your buddies and looking at photos what do you do and Pincus is original vision to some extent was let's have games to play and that insight doesn't happen that way unless you don't do tribe and go into the trenches and get the scars on your back and your in your your second venture of our adventure right at the tribe was aggregate knowledge was similar concept people are connected I mean you got to be excited though I mean you know you were involved in tribes very early on all the stuff that you dealt with activity streams newsfeed connections the social science you know the one that one of the nicest pieces of validation of this recently was over in q4 of 2010 seven of the patents that me Chris law Elliot low and Brian Waller wrote got issued now they're all owned by Cisco Cisco bought tribe in the end they bought the assets in the and the patent filings but there are patent filings that go back to 2002 on the corner stones and hallmarks of what social networking really is that we wrote back then that have now issued order granted or sitting in the cisco portfolio and well that's kind of like a consolation prize and that there wasn't a big outcome for tribe it is very validating to see that those original claims on really cutting-edge stuff have been had been issued and I'm excited about that you should be proud i'm proud to know your great guy you have great integrity you're going to do well as a venture capitalist i think you people will trust you and you're fair and there's two types of people in this world people who help people people who screw people so you know you really on one side of the other you're you're not in between you're truly on the on the good side I really enjoy you know having chatting with you but let's talk about entrepreneurship from that perspective about patents you know I'm try was an outcome that we all can relate to the peplum with Facebook of what Zuckerberg and and those guys are doing over there that's entrepreneurship so talk to the entrepreneurs out there yeah hey you know what you do some good work it all comes back to you talk about the the Karma of entrepreneurship a failure is not a bad thing it's kind of a punch line these days I'll failures are stepping stone to the next thing but talk about your experience and lets you and i talk about how to deal with faith for those first-time entrepreneurs out there in their 20s what just give them a sense of how to approach their venture and if it fails or succeeds what advice would you give them yeah well like winning and losing is important part of the game I mean certain companies are going to be successful in certain ones art and if you go and start ten unsuccessful companies maybe this isn't exactly the business for you but that said how you the game is important as well and if you're a high integrity guy who gets good investors and you make quality decisions and let's say the market wasn't a fit you're going to get the money the second time because people said you know I work with that guy that guy really did a good job you know they never got it quite right but this is a guy learn the right lessons so when I'm coaching a first-time CEO and i'm the CEO coach of a couple guys now you know i'm looking for someone who's sitting there going hey i not only want to do this to win and be successful but i want to learn i I want to do this better than no one no one walks in and says I learn from my failure I hope I'm successful I mean you let it go and say hey I'm gonna be successful I want to win failure is not an option but failure happens right i mean you know it's bad breaks that mean but but here is the key less I tell this to all of the entrepreneurs I work with you will not be successful if you're making mistakes that were made by those before you if you make novel mistakes you're in good company right and so only ever make a novel mistake I made a good example this is one claw and I started Chris law and I started aggregate knowledge aggregate knowledge was the original business model was around recommendations and there were dead bodies in front of us there was net perceptions there was fire fly and she was in the office this morning with Yazdi one of the founders of [ __ ] cast with it man yeah so predictive analytics residi what did we do we went out and we I flew out and met John riedle University of Minnesota who was the founder of net perceptions I dug up yes d i got these guys on my advisory board and while aggregate knowledge was not successful in the recommendation business and pivoted into the data management thing we made novel mistakes we did not repeat the mistakes of met perceptions and firefly and so i think that's an important important lesson to an entrepreneur if you're going into an area that has dead bodies in front of you you better research them you better know who they are you better know what happened and you better make sure that if you screw it up you at least screw it up in a way which none of us could have predicted yeah that's the only way you're going to get a hall pass on that well let's talk about talk about some of the hot Renisha of activity saw so you're in that sector where you're feeding the seed the super angels in the first rounds early stage guys and it's a good fit what about some of the philosophies on like the firms out there there's of this to this two philosophies I just taught us to an entrepreneur here you met on the way out a street speaker text and there at seven you know under a million dollars in financing hmm series a yeah and then you got in the news yesterday color 41 million dollars building to win magnin flipboard a hundred million dollars i got this is these guys that we know i mean there are yep our generation and a little bit around the same time and certainly they have pedigree so remember the old days the arms race mentality right when the sector at all costs right that's kind of what's going on here i mean some of the command that kind of money there's actually an auction going on what do you make of that I mean bubble is an arms race so so rich Melman inside a bullpen de tu fascinating analysis he looked at the full portfolio of 28 took about 20 of the best super angels by the way the super angles are all different some are micro vc summer buying options etc so so first off super angel is a weird word but it's everybody from Union Square and foundry on one side first round and flooding but any take the top 20 or so of these guys and look at their portfolios what's amazing about their portfolios is the unlike 10 and 20 years ago in prior tech bubbles there are not 20 companies doing the same thing when you categorize them yeah ten percent are in ad tech ten percent our direct-to-consumer consider but like forty percent are one-offs that is this is I think one of the first times in the history of venture that forty percent of the deal flow is a one-off unique business idea that there aren't 30 guys going to do and I think that the importance of that to what happens in this next stage of the tech boom we don't know what that means yet because back in the day well we need to just we're venture firm we need to disk drive company okay so your venture firm you've got your disk drive companies and I'll 20 venture friend knows if drive out and created the herd mentality everyone talks about with venture yep mean I was an opponent on a talk on here in the cube and I don't think I actually put in a blog post but I called the era of entrepreneurship like with open sores and low cost of entry with cloud computing and now mobility the manure of innovation where you know in the manure that's being out in the mark place mushrooms are growing out of it right and these you don't know what's going to be all look the same in a way so how do you tell the good ones from the bad ones so it's hard right so you have a lot of one you have a lot more activity hence angel list hence the super in rice so so the economics and the deal flow are all there the question is how do you get them from being just a one-off looked good on paper flame out the reality yeah well look in my opinion seed stage investing is about investing in people and I think when big firms trying to seed stage investing there's an impedance mismatch a lot of times because they want more evidence they want to know did the market work to the management then this is this is an early stage venture and am I going to want to go in a foxhole with this person and in many ways the good super angels are instinctive investors who are betting on people that they want to be in the foxhole with and yeah did they do it before do they know how to hire people is the market reasonably interesting but guess what they're probably gonna pivot three times so wait a minute at the end of the day you got to invest in people later stage venture is not you can look at discounted cash flows you can look at mezzanine financing you can do traditional measures but if you're going to invest in two people who have a prototype and need five hundred thousand dollars you're investing in people at that point what do you think about the OC angel is I'm a big fan of and recently was added thanks to maybe out there but even though i'm not i don't really co-invest with anyone else other than myself maybe you guys would bullpen but but if that's a phenomenon you don't have angel list which is opening up doors for deal flow companies are getting funded navales getting yeah a ton of activity nivea doing great job with venture hacks i get y combinator which I called the community college of startups they bring in like they open the door and I mean that an actually good way don't mean that negatively I mean they're giving access to entrepreneurs that never had access to the market right and now you have Paul Graham kind of giving the halo effect or thrown the holy water on certain stars and they get magically funded but yesterday at an event and they're they're packed right I've heard from VC saying I'm not invited because I didn't wasn't part of the original investment class so it seems that Y comma day is getting full yeah so do you see that you agree is there will be an over lo y combinator you know kind of like I've TED Conference has you know Ted they'll be you know y combinator Boston little franchises will be like barcamp for sure I mean look and look at techstars they franchise they'd I was over there with Dave Tisch in New York there's TechStars New York after those TechStars older in techstars seattle there is no doubt in my mind that right now there is an over investment in the seed stage meaning that there is a little bit of a seed bubble going on that's not necessarily bad though because in terms of raw dollars there's not a bubble yet Rory who's over at rafi it smells like a bubble it looks like a bubble but when you look at the mechanic when you look at the actual total dollars it's not a bubble rory who has a hinge recent Horowitz been said that that it's a boom not a bubble yeah so don't be confused it looks like bubbles and booms kind of look together the same right I actually I'm not quite sure I had the exact data right but here's the quick summary if you take a look at venture capital investment as a percent of GDP historically it's been something like point one percent of GDP in the bubble back in 99 it went to one percent something like it went 10x higher right now we're still at point one percent but since it's very much centered around the seed stage investing you see this frothiness in the sea but until that number goes from point 1 percent of GDP back up to one percent there's no real bubble because the tonnage of money hasn't come in yet and so so it's starting but this is what a tech boom feels like the early stages are excitement and lots of ideas and lots of flowers blooming and then the big money comes in because John I'll bet you're your brother and your sister and your mom haven't invested in a tech startup back in 99 video there's no public market that supports seven in a way that's a good and bad star basement yeah there's no fraud going on and most of the companies that are out there whether their lifestyle business or seed or bullpen funded are actually generating income the entrepreneur he has any earlier Mike was saying that he could a business deal so people are kind of like saw the old bubble and said shoot I don't want to do that again I gotta have at least revenue right and so companies didn't seem to start out with cash so you know that because you invested it but you know Pincus was getting some cash flow in the door from day one that's right that company was company was profitable the first day it started basically so talk about you know so I'm with Paul Martino by the way with bullpen capital entrepreneur wrote the patents on social networking which he sold the cisco when they sold the company now with bullpen capital huge dynamic you're a company out there this is exactly the positive dynamic you want to see because mainly you know dave mcclure jeff clavier mike maples have been kind of getting their butts handed to them in the press about super angels not having the juice to kind of go anywhere and it's been kind of a negative press there so you know this is the kind of void that's been filled by you guys to show the market that look at this there's a road map here so even though that the McClure's and clubs don't have big funds that there's a path to follow on financing so that the vc's can't shut them down and i've heard some pc say that so a lot of traditional venture guys would like to say that you know this little disruption we nipped it in the butt and it stopped after the seed stage but that's not the history of disruptions the history of disruptions are they start from the bottom then they get ecosystem support and then they grow and they disrupt the incumbents and I think we're halfway there so so the Angel gate thing that Arrington reported on was interesting because you know essentially what happened there it was a lot of him fighting Ron Conway I was not happy you can't be happy about competition I mean this is competition that increases prices right so you know in the short term prices have been inflated on valuations true or false that's true but but but I think I think the whole way angel gate was reported was absurd the most Pro entrepreneurial venture people perhaps in the history of the business are the guys who were supposedly at those tables I mean mike maples Jeff claw VA josh cop and Ron Conway fired his guy that was there I I understand suppose again suppose a key are right these are the most Pro entrepreneurial venture guys in the history of the business so I think that turned into something that it never was yeah well I mean that's the thing you know good for content producers who want page views I got to create some drama and you know as you know SiliconANGLE doesn't have any banner ads on our site quick plug for us we are motivated by content not page views so thanks for coming in today no but seriously I mean there's a there's a black cloud over the super angels has been since Angel gate I've heard privately from VCS that super angels it's been kind of a scuttlebutt they're misaligned just rumors I completely overblown and you know their business model threatens the incumbents and you know someone needed someone needed a piece of fodder to start a you know start a techcrunch discussion right there's no doubt that the market is need in need of a new ecosystem for the early stage because individual angels traditionally were wealthy individuals but now you have people with more experience like yourselves and entrepreneurs from google and facebook etc coming out and doing some things okay so next topic more on a personal kind of professional note k last final question is I know you got to run appreciate your time you're a technologist a lot of folks don't know that you're hardcore computer science guy and our model southern angles computer science meet social science right in your wheelhouse so with that just kind of final parting question what gets you excited technically right now I mean I'll see you have roots in both comps I and social Iran Zynga's early investor roster you got a bullpen capital you're looking at a lot of deals outside of that you as a computer scientist geek mm-hmm what gets you jazz what do you see in the horizon that's not yet on the mega trend roster that kind of you can't put your finger on it truly we might really get a good feeling well so I think you'll be disappointed with this answer because I think it's now cross the chasm to start being one of those mega trends it's called consumerization of enterprise and that's now the buzz word for it but what is it really mean and why do I think it's for real look you've got cool self-service applications for everything you can go do home banking by logging into a portal you can go to an ATM you can go do these things but you know go bring a new laptop into your big stodgy fortune 500 company and you know it's like getting a rectal exam right you know we got to install this we got to give you this private key yet that's TSA it writes like going through TSA exact idea that IT inside of big fortune 500 companies is going to stop being this gatekeeper to new technology I think look how long do you think it'll be until pick your favorite fortune 500 company the IT people know how to deal with the ipad 2 but how many people bought an ipad 2 into the off already everyone and so this to me is going to be the big next deck the next decade are going to be self service offerings for the enterprise getting around a very frustrating gatekeepers inside of you know the IT department etc and that's going to lead to an awesome boom of everything from security to auditing to compliance etc that's the convergence question Paul Martino my friend entrepreneur great guy venture capitals now on the good side helping the seed Super Angel micro VCS great to have you consumerization of IT that hits the cloud mobile social it's everything so that I was buzzword compliant on that great job great to have you know you're busy got to have you in again thanks so much for time that's a wrap thank you very much great thank you John