Tech Charges Higher and Adobe Misses the Mark | Bloomberg Technology

[Music] Bloomberg audio Studios podcasts radio news from the heart of where Innovation money and power Collide in Silicon Valley and Beyond this is Bloomberg technology with Caroline Hyde and Ed L low [Music] live from New York this is Bloomberg technology coming up Tech charges higher as the NASDAQ is set for its best week of the year we dig in to the AI drivers that's even as Adobe misses the mark a muted forecast on AI growth overshadowing better than expected third quarter results and Uber it Powers ahead as it expands its partnership with weo bringing autonomous ride hailing to Austin and Atlanta but let's look into at what's happening with Uber because we are driving higher P the pun up 4.9% this is all surrounding of course a deal that it's making with wh Mo it really wants to be owning autonomous driving let's dig into that news that it will basically be the only app offering driverless rides in whmo cars in Austin and Atlanta so good news for this stock Natalie L is with us to break it all down and Natalie overall I am wondering more broadly about well what Uber is seeing here is it the challenge coming from Robo taxes but challenge coming from Tesla or is it something else that drives this it could be a combination of all these things and Uber wants to make early Innings into being the platform that people go to that regular people go to to get these consumer uh get these driverless rides so that's why they're making Partnerships with may weo as with crw as well as byd uh for right experiences outside the US and it wants to be that so-called indispensable partner to all these manufactur who are looking to put their driverless cars to use it's going to bring on board all electric Jaguar eyac Vehicles the wayo offering how quickly am I going to be able to get in one at the moment where which cities how fast will this expand right so Uber and weo currently has a collaboration in Phoenix so that's happening there now but starting early next uh next year uh Uber will be offering those wayo rids exclusively um uh in Austin and Atlanta it really is a good day for the Uber stock we're popping best day since August the 8th but up almost 5% Natalie lung breaks down we appreciate it so much meanwhile Adobe shares doing the opposite whip soaring to the Lower Side today after the company reported earnings yesterday after the Bell Outlook really failed to quell investor impatience for new AI tools to start generating cash Brody Ford pointed us toward it yesterday and is here with the results today and it does seem to be that digital media side that is letting the side down yeah well here's the big question for these software companies that were the big winners over the last decade is AI a meaningful new product that'll unlock new revenue or is it just kind of like a cool feature that you add in and it's a nice to have but it doesn't really move the needle and that's the question that investors have been batting back and forth with Adobe and what we saw last night is just that that that incremental Revenue they were hoping to see from new AI products at least isn't materializing yet we have EX Executives talking about we are optimizing for use and adoption rather than really driving monetization on these products yet yeah what did shantanu have to say to quell investors nerves because this is a heavy sell-off in the stock but they seem to be trying to show that yes they're driving profitability they're driving forward in terms of their offerings but not really speaking to this weakness yeah their defense as I read it it and it was a bit of a subtle one is that AI is is still a value ad because it keeps folks from going to our competitors and it allows us to increase prices right so it's not that I'm paying an additional $10 for the new AI tools but it's that well I'm not going to go install canva and if you raise my price is 10% I'm not going to cancel and I'm not going to fight you either and so they said that it's it's kind of an indirect monetization story at this point with more direct monetization to come in the future what levers therefore can they pull to monetize in the future in the future the idea would be that you know Generations say in Photoshop click here make a picture of a dog doing a backflip every time you do that you have let's say a th credit standard for Generations you go above that you start getting charged that's one method um in more resource intensive models such as video which they're working on they said that could be a whole different monetization mechanism in part because the compute would probably be so much higher so in General Credit packs consumption and additional product tiers would be the general way folks would expect and they've spoken about one area of focus that we have for Adobe going forward has been the investment that they're having to make as well the Partnerships that striking the where they're trying you were on yesterday just talking through how these businesses are trying to delve into the 3D modeling side of things how expensive is the artificial intelligence offering for them the the beauty of being a giant company like Adobe some folks have told me that Adobe suite of creative tools is one of the most profitable products ever and so they have a bit of a mountain of cash and so they're definitely able to train these things and throw some money around without it being too dilutive at this point so it's a big expense especially for the startups we hear about it being a you know it can be an inhibiting Factor Adobe has really tried to message that look we have a diversified business we are willing to pull some some cash over here and put it over here to make sure we're able to keep on doing this and keep getting adoption and they generally think that their best set by centralizing users on Adobe and keeping them there by keeping AI accessible for a little longer before jacking up the prices R Ford we thank you so [Music] [Applause] [Music] much let's talk Aviation Tech right now Boeing factory workers walked off the job for the first time in 16 years today halting manufacturing across the plane makers Seattle Hub this after members of its largest Union voted overwhelmingly to reject a contract offer and go on strike while both parties have expressed a desire to get back to the bargaining table the move adds to The Strain on Boeing let's just stick with the airline industry now because United Airlines has announced a deal with Starling the airline is set to offer inflight Wi-Fi through spacex's internet service for free Bloomberg Lauren gr joins us now wow no more $5.99 minimum spends for whenever you get on the plane what does it say about starling's reliability in the air right I think a lot of people were wondering when you know they would strike a big deal with one of the major airlines and I think what it's showing is that all right you know there were some questions about whether or not it could handle the capacity earlier but now I think at least one of these Airlines says all right I think they're ready to handle our Fleet of vehicles when you say one of these Airlines one of the big carriers in the US they've already got a deal with Hawaiian Airlines right they've got some deal which is a smaller Airline um you know predominantly based out of Texas um but yes this is one of the big four if you will and so now they finally have I think the bragging rights that they need to say all right we are here for the big time the big players um just look at this deal Scott Kirby really talking about how you're going to be able to just walk straight on the plane from the lounge everything will be seamless ultimately you be connected devices also what you're going to be using on the aircraft itself what in terms of market share do anist think that they'll able to get here is Scott Kirby the first guy to go and everyone else follows I think so I think a lot of people think this might be like a watershed moment for them you know because it's it's a big advertising get right they can say all right here we have one of the major players when are the other ones going to follow suit and so that's I think really the big get for them the technology is what we love to hear from you and ultimately how hard is this we all understand how glitchy the airline Wi-Fi is at the moment why is that and what does starlink offer well one of the big advantages that starlink has over its competitors for other internet satellites is that they're closer right so the the incumbents that a lot of the Airlines use use satellites that are in much higher orbits and so there's a latency there's that lag that I'm sure everybody has been frustrated with on their planes from time to time but with what starlink offers is their satellites are much closer to the Earth and so you can have that cut down in latency of course that comes with more satellites in orbit they need to launch more and more so that they can have that Global coverage because when you're closer to the Earth the satellites are moving a lot quicker and so in order to have a satellite overhead at any given time they just have to keep launching satellites it's basically a numbers game but if they are able to have enough satellites in orbit then you cut down on that latency and it's a more seamless experience William Blair analyst Lou do seems to be saying starink is now position to have the highest Aviation market share over the next decade but he's not saying in the next two or three years this takes time right yeah it's definitely going to take time um and as we've seen you know in terms of where starlink has excelled they've really gone up in numbers when it comes to individual subscribers um Maritime deals they're definitely very popular over the ocean right because there's less uh demand there but when it comes to the you know Overland and with the bigger um Airlines you know that's going to take some time also you know you have to get certain approvals you have to re outfit the planes so it's going to be a slow process but this is just the first step and we it'll be interesting to see if any of the other airlines follow Laur on Crush what joy to have you in the studio in New York while she's here traveling thank you so much been a busy week in space elsewhere in transportation Amazon says it will invest more than $2 billion in its delivery service partner program it's basically an effort to raise driver pay to a national average of about $22 an hour Bloomberg's Matt day reporting across this why do it Matt well why the first and kind of obvious context behind this is a pressure from labor groups um you know Amazon's contract delivery drivers are a focus for the teamsters in particular they put a big Target on Amazon spec saying we're going after them um famously these folks represent ups and I've said they think they can organize Amazon worker so Amazon playing a little bit of Defense here defense ultimately why do they go for contractors to begin with why don't they hire their own drivers you know the argument they make is that it's about empowering small businesses um I think labor experts would maybe bat an eye at that um but it is it is a relatively common model right FedEx uses you know versions of this Uber you know famously doesn't employ its own folks either um so for Amazon this gives them you know a a bit of a Best of Both Worlds right they don't have to provide you know the perks of employees to these folks directly you know at the same time they can exert a relatively High degree of control over um independent often bespoke contract outfits how how does it look abroad is it this model in the US same elsewhere different there are versions of it and obviously you know in countries with stricter labor laws you know they have to comply with those us has fewer of those when it comes to last mile drivers but there are versions of it their delivery service partner program abroad they say there's something like 390,000 drivers employed um by dsps worldwide so it's a it's a huge portion of their you know kind of Workforce that is not accr to their books and let's talk about their books because I think ultimately this is a business that has been cutting jobs has been getting leaner and meaner in areas it can while it splurges an awful lot on artificial intelligence and and compute what does this say a$2 billion investment what is that in the context of Amazon's overall spending I think it's a reminder that you know as people talk about them as a technology company you know their Core Business of getting you things you know uh by by delivery is still growing even if it's slower than it was during the boom years uh and it still requires a whole lot of bodies to make it work right we're going to see surely from them announcements about their seasonal hiring coming up for the fall um for the for the peak holiday season something they do every year about this time um so just a reminder I think that you know listen while they the AI is getting all the headlines um they still are moving a a whole lot of stuff and require a lot of Partners to make that happen that day all things Amazon we appreciate it thank you so much now coming up meet the dirt bag of the internet who happens to be behind the crypto project promoted by Donald Trump that's next this is blue b technology [Music] [Applause] [Music] revolute it's seeking licenses to start operating in the Middle East this is the London fintech giant hunts for growth Beyond its home market now the firm has submitted applications to the Central Bank of the UAE reporting shows to become an electronic money institution and offer remitance in the country they of course the sources currently speaking to Bloomberg say that the goal is to eventually apply for a full banking license similar to the one that it recently received from Regulators in the UK after years of work now let's stick with the world of fintech but the crypto side of it in the last year Donald Trump has fashioned himself into a friend to the cryptocurrency crowd he and his two older Sons now have been particularly good friends to world Liberty Financial the crypto project they've been promoting on social media here to tell us more about well the dealmaker behind the project it's Bloomberg investigative reporter Zeke Fox you're also the author of Book numberg go up inside crypto's wild rise and staggering full which is up for a few Awards so congr congratulations on that Zeke you start your story focused on Chase herrow what can you tell about this guy yeah so Chase is unknown in the crypto world but I dug into his career and he's been a marijuana dealer he says he went to prison for that he sold weight loss colon cleanses online he had a $149 a month get-rich quick class and then now he appears to be the main dealmaker behind World Liberty Financial which is this defi startup the crumps are the trumps are promoting and president Trump himself posted a video saying you know this is going to challenge the big Banks so it's really bizarre to see that this is the person they're partnering with I'm sorry the guy behind this defi project isn't even known in the crypto world no and I mean he calls himself uh in videos he likes to call himself the dirt bag of the internet I found in another video he said Regulators should kick people like him out of the industry and not in those words um he seems to have a very cynical to say the least attitude towards crypto and this project Road Liberty you it might sound kind of impressive if you didn't know about crypto but uh it appears to be kind of a copy of a existing project that didn't go anywhere and then lost a lot of money in a hack yeah you're talking about the do project right doou G that seems to be what's got actually industry insiders the crypto industry a little worried is ultimately that the people behind World Liberty Financial have come across from a much smaller project that didn't manage to raise that many funds and actually got hacked yes and and I mean we don't know the details of world Liberty I obtained a white paper that lays out some of them but I'm sure it's all subject to change um but this is supposed to be defi like decentralized Finance the white paper says that 70% of the tokens will be reserved for insiders so talking to people in crypto they said this looks like it could be more of a cash grab than a Innovative project okay and there in lies the issue that this could be some sort of cash grab some of the details in your story and that might hint that there's a slight difference in how this D5 project is run compared to others is that the people behind the c the overall project keep what 70% of issued tokens that's a lot yeah and I mean like we're talking about this like a I think we're talking about this even a little bit too seriously like you should go go read what this guy says about crypto I mean I I can't I can't repeat it the language is too this is a family TV channel I guess uh but um the way he talks about it doesn't give you any confidence that this is a a serious project that's going to challenge big Banks he says basically you you can sell utter rubbish and anyone will buy it in crypto he happened to say that in a 2018 YouTube video recorded as he drove his Rolls-Royce yes and I mean I'm digging deep to try and find his crypto resume and I found that he appeared on influencer Logan Paul's podcast and during the podcast the two of them promoted a token called Omi which I had also never heard of before since they promoted it a couple years ago is down 96% um and another YouTuber a scam busting YouTuber named coffeezilla posted this expose that appeared to show the two of them coordinating ahead of the show their plan to talk about om me I mean it seems that someone else listed in the white paper who's responsible as operations lead used to run a service called Date hotter girls where he taught seminars on how to pick up women all of this just feels like a real risk ultimately for the person who is running to be president of the United States again to be associating himself with why do it I mean it's pretty bizarre um and the the crypto industry to they the people I've spoke to from it are not happy about it they like that Trump has flip fled and has endorsed crypto he said that he's going to fire the head of the SEC and provide looser regulations that he says will make the US the crypto capital of the world they're like that all sounds great but then why are you starting this pretty silly sounding new Venture a for-profit venture just before the election it almost uh discredits the uh raises questions about his motivations for deregulating the industry what has ultimately the world Liberty Financial spokespeople said to you have you tried to get in touch what have they said ultimately about the real underlying necessity of this project so I did contact them and I received an email back from a man who said he was not a spokesperson but then he he could spoke for World Liberty and said that he could see where I was going with all these questions and it was painting an inaccurate portrait of this company and that time will tell that this is a serious project that's doing cool stuff and Donald Trump has said he's going to unveil the details on Monday at 8:00 pm on a Twitter spaces so I guess we'll see if what he says is consistent with the white paper if they've uh they've made some changes uh I'll certainly be listening whether or not it will indeed move away from the old Banks as former president Trump has discussed Z Fox we might need to come back to you on Monday thank you so much extraordinary piece meanwhile some news from a company that used to be associated with crypto much more in the AI world now cor weave it's a cloud computing provider now that's among the hottest startups in the artificial intelligence race and it's in talks to a range of sale of existing shares valuing in it get this $23 billion according to sources the source say that the company is discussing a transaction that would allow existing shareholders such as employees to Tender between $400 million and $500 million worth of their [Music] [Applause] [Music] Holdings welcome back to Bloomberg technology I'm Caroline Hyde in New York let's get you a quick on these markets because they are higher and in fact they've been higher for five straight trading days on the NASDAQ 100 we've added more than a trillion dollars in market cap we're up another 4/10 of percent maybe the Panic of last week becomes the past and we start to once again factor in maybe a 40% chance at least that the FED could indeed cut rates to the tune of 50 basis points as soon as September that's what the market is currently trying to digest we see that reflected in the bond market the yields just falling on the 2-year yield I'm saying this because actually equities worldwide are seeing buoyancy from this stock 600 over in Europe tra finishes the trading week also on the higher side and it adds some 3/4% on the day as we finish trade let's move on to some of the individual movers trading here in the United States at least look chips have been on fire we've made up so much of last week's real Panic selling that we saw the stocks is currently up 1.4% in fact every single name have been trading in the green on the day and largely we've got some meteoric moves over the last 5 days arm is up some 25% this of course a chip design company that Raymond James is saying they're now rating it and outperform they see it growth few particularly when it comes to AI on the edge and we're looking at Adobe though despite managing to live up to expectations in its fiscal third quarter it's dragged lower it's forecast not good enough where have we heard that before Nvidia broadcom we've heard this a theme in the earning season and Adobe once again just not managing to show the generation of revenue from AI even though they do add generative AI to their offering let's just stick with AI now because AI Pioneer f f Lee has raised $230 million from a start F started list of investors for a new AI startup called World laabs which officially launches today the company aims to build software that can use images and other data to make decisions about the threedimensional World building what it calls large World models here to talk about what exactly that means and indeed the fundraise Dr F FY alongside blue mugs Rachel mitz it is wonderful to have you both here and well Dr Lee I asked first and foremost what was it like raising funds as an academic now entering the private world to be raising money you've been in private world before but to raise funds was it easy from this star sted list uh good morning Caroline it's really good to be here well nothing is easy but what's really really hard is make spatial intelligence happen I'm just so excited that uh we brought together a u incredible group of uh pixel a AI talents to work on this really really hard problem that we now call spatial intelligence explain to us what you mean uh when you say spatial intelligence and what is it that you're building exactly yeah uh Rachel well look humans have spatial intelligence it's actually a very ancient uh ability we have evolved over millions and millions of years it's the ability to uh understand to reason to generate and to even interact in the 3D World right whether you're looking at a beautiful flower or trying to uh touch a butterfly or building a city all this is part of the capability of spatial intelligence we see that with humans and we see that with animals how do you expect that we'll see that with computers well that's the problem we're working on we're already starting to make tremendous progress um the past uh decade of AI has been pretty exhilarating and uh people hear a lot about language recently but truly in the world of pixels and vision and spatial intelligence we've been making progress such as understanding what's in the picture to be able to tell a story of what's in the picture to even prompting a sentence and get a 2D image out of it but what's really the next Frontier which is such a hard problem to crack is to bring all this into 3D because the real world is 3D and humans spatial intelligence is built upon this very nature capability of understanding and uh uh working with 3D so let's put into real world context that working with 3D the applications is it robotics is it manufacturing is it just us interacting with the real world when we put our AI function glasses on you're not WR uh Carolyn this is such a foundational technology it's a foundational ability for uh for computers that it has implication in a wide range of use cases uh to start with right creators creators includes not only artists and uh V VFX creators but also designers uh in uh developers Builders and uh this technology has a a profound implication for them but in the long Arc of this of course um uh robotics manufacturing AR VR this is you know there's a reason that uh Apple calls their uh Vision Pro spatial Computing well in my opinion spatial Computing needs spatial intelligence so does many other uh use cases why does spatial Computing need VC money private sector action what couldn't you achieve in Academia so um this is a whole ecosystem we've been seeing this uh in in AI we've been seeing this for years now and this dates back to any technology that uh uh our society our country is building right this ecosystem uh needs Upstream fundamental curiosity driven research which uh I have spent many years of my life in but it also needs very focused Drive in Industry uh we've got great big tech companies working on related problems but we also what's beautiful about our ecosystem are startups that has a tall dream has has the ability to call on the Believers who believe in cracking such a hard problem and we come together and focus all of our energy in solving This truly hard problem that needs to be scaled needs to be productionize and needs to be delivered in the hands of users and customers Dr Lee one of the things that you're most well known for is image net um big database and millions of images that really help push forward the field of object recognition and images I'm curious how your work on that played into your decision to start World Labs how are how do you see those two things is related yeah thanks for asking that question Rachel I think they're related in um in in two two ways at least one is that image that is uh one of the earlier work in the field of computer vision which is in the pixel space um granted in that time you know more than 10 years ago what image net and the uh derivative algorithms were able to do are still in the 2D space right uh recognizing objects in photos and uh eventually telling stories of pictures but now this is a an intellectual continuation of um the early work in computer vision now we're into the next really really difficult chapter which is spatial intelligence so intellectually I feel it's my life's work in continuation and uh zooming out one layer image that was my um more than 15 years ago it was my intellectual bet on a big Northstar problem a Northstar problem that can really change the course of AI I do believe spatial intelligence is the next nor star for me and for my team that it will change the course of AI of the things I'm wondering about um with uh the funding for this company is um there are a number of big names in AI in particular um that invested in this we've got Jeff Dean um and Jeffrey Hinton Andre karpathy um some of them you you've worked with previously I know several of you were at Google at the same time how did you pitch them on it well that's the beauty of our field the first of all these people um have been friends and colleagues for years or former students I think they share my belief I think they see this as such a big problem and uh they believing my team that when they hear my co-founders uh Ben milen Hall Kristoff lner Justin Johnson and really the entire founding team they recognized that um well this is a tough problem it needs people who really can have have the ability and belief to to crack this and I think that's why they uh they uh supported us you've got money from big name VCS as well Anderson and Horowitz to name just one I'm interested more broadly about the rallying call you've had for money to go towards Academia you went to President Biden himself saying that there needs to be more funding in the public sector as well as the private sector when it comes to AI R&D ultimately so universities can access GPU and compute are you still still feeling that necessity that public sector needs money or have you just sort of given up and gone to the private sector here Carolyn I actually believe even even more so now that I'm traversing both the private and the public sector that seeing the access to compute access to support in the private sector I believe none of us will be here in the private sector without the public sector you know image net convolutional neur Network back propagation um Transformer models manying of these seminal work in AI came from public sector first so so I think this ecosystem is so critical and missing or or the imbalance of any component is harmful for the ecosystem and now I have personal experience to see the access we have to resources it makes me believe even more that our country needs needs to invest in our public sector in Academia in in this kind of moonshot mentality to support you know students and faculty and researchers in uh um basic science research academics backing you financially as well as as I say a16z Nea radical Ventures as well as many others and some celebrities in the mix as well we thank you so much World lab's co-founder F FY and Bloomberg's Rachel Mets I appreciate it now let's just talk about elsewhere and AI open AI CEO Sam Altman Nvidia CEO Jensen hang and other industry leaders have actually just been meeting with senior Biden Administration officials at the White House just yesterday where they discussed steps to address massive infrastructure needs for AI projects following the talks the White House announced an in inter agency they're calling it an inter agency task force to help promote data center development in the US and initiatives to support accelerated permitting for those facilities coming up we're going to be joined by Dylan Cox head of private markets research at pitchbook for the firm's latest report on private money going into startups like we've just been talking about and then we've got rethink impact founder and managing partner Jenny abenson on the firm's latest fundraise it's a lot this is blue technology [Music] [Music] [Applause] this week pitchbook released its quarterly private Market fundraising report not that pretty a reading funding was down in the second quarter with VCH Capital seeing a 33% drop in fundraising year-over-year let's discuss it all with pitchbook head and private markets research Dylan Cox Dylan we know that it's been hard to raise funds for some who particularly is it hard for well thanks for having me on uh over the last 12 months our dat a shows it's been particularly hard for Venture investors as well as private real estate funds uh on the flip side of things we've seen some strategies have success such as private Equity uh secondaries which provides liquidity to private markets and mitigates the Jare of impact for newer investors as well as private real assets which a lot of people don't expect um there's a lot of money right now flowing into infrastructure kind of along the lines of decarbonization of the economy what about well Data Center and and digitalization are we seeing that in terms of the real asset allocation we are that's another big piece of it it's decarbonization it's it's data centers but not to be forgotten our sort of traditional infrastructure like roads Bridges ports and airports and then something that also catches a lot of folks by surprise is the sort of slow but you know steady chugging along of more traditional natural resources in that bucket things like oil and gas and Timber funds um I think have proved to be a bit more resilient than a lot of investors would have expected maybe 5 or 10 years ago Less on our Tech theme of things but uh important to acknowledge D talk to us a little bit about what's happening in VC what are the funds having to say to former LPS to get them to commit to new funds where are we seeing outliers raise big new funds to allocate well AI is is certainly the name of the game which will of course surprise nobody we're seeing much larger AI Focus funds as well as AI Focus deals right now many of them you know household names at this point uh but in terms of the asset class as a whole I think the single most important issue right now is liquidity that's distributions back to investors of venture capital funds viewed as a proportion of of the size of the fund or the assets in the fund we're reaching sort of decade lows in terms of trailing 12mon distributions which of course means that investors in those Venture funds have fewer dollars on hand to recommit into the next vintage of uh Venture Vehicles love that you talk us through the secondaries and the liquidity side of things as well Dylan Cox pitchbook head of private markets research great to have your take we're actually going to now pinpoint a complete outlier to the conversation that we've just been having because rethink impact is now one of the largest VC firms dedicated to funding female CEOs and it's just announced a whopping 250 Mill million doll fund its third and largest fund raise to date nearly doubling the firm's assets under management to more than half a billion founder and managing partner Jenny Abramson joins us now so Jenny we're were just hearing that it's dire out there for Venture but not for you who did you have to come on board which LPS are interested well first of all thank you for having me on behalf of my partner uh Heidi Patel and the rest of our rethinking back team yeah we're very excited to have announced a more than 250 Mill milon dollar raise um the largest fund backing female CEOs and we were fortunate despite the trends that Dylan shared to be able to do this uh in this market um and it was a large part due to Major institutions who came on board to support the fund what sort of Institutions are willing to almost take what now feels that the pendulum is swung on a more Dei focused to investing yeah I think people major institutions we had more than 10 University endowments we had more than 10 major foundations we had for example a hospital uh and others that really do care about returns and I think have realized that investing in women and gender lens investing is not just something that feels good but is actually good business and so they came on board along with many individuals self-made billionaires like Sarah Blakeley of Spanx and sneaks to um Linda French Gates the maor philanthropists uh and to many others and we think the combination of uh big institutions that I named a global bank like UBS Cambridge Associates and their LPS um these kinds of Institutions have realized that this is now a mainstream opportunity we were just looking at some of your previous portfolio from the first fund the Vintage is good the billions that you've managed to raise well these Founders have now made themselves valuable at Guild education for example Spring Health elevest but these companies haven't yet exited per se some of them when do you think that that might occur in the first fund what how is the IPO pipeline looking for you do these female Founders want to go to IPO or are they looking at m&a opportunities yeah it's a great question I mean I think the data has shown that female entrepreneurs do deliver higher Revenue more than twice as much per dollar invested and tend to exit on average a year faster than their male counterparts and these companies you know like all companies there's been a slower IPO Market but we invest sometimes as early as a late seed and so it can take companies typically 8 10 years uh as long as as well as an open IPO Market of course there's also m&a opportunities PE buys and others and so depending on the company different different outcomes will will occur we were just hearing from the people who've jumped on board to commit capital in in what I kind of already referenced of this moment where the pendulum has swung we are hearing more push back against funds that focus on women people of color minority Founders rather than wanting to embrace them we've seen The Fearless fund for example actually have legal issues being able to allocate its grants to women of color was that anything that you heard of when you were out this summer raising the money you know we really mostly heard that people were excited by the opportunity that investing in women is no longer just a pass Trend in Wake in the wake of the me too movement and I think this raise makes clear that this is good business good for the economy and certainly here to stay so that's mostly what what we heard male founded companies continue to get 98% of investment capital and almost all of our companies have men and women in the top team and we think gender diverse teams outperform and our goal is to you know grow the pie here and grow the economy which is which is what we're doing by backing these great female leaders oh boy Jenny but you say that stat just 2% basically of VC money going to female founded companies and it isn't changing and I'm interested as to why you think that is occurring if you give us all the statistics that they're managing to exit quicker they're building Revenue faster we're seeing better outcomes yeah you know I think this is the moment where it's starting to turn to us this raise from rethink impact that we announced it really shows that these mainstream investors these institutional investors see the opportunity and that the opportunity between the data and now examples of companies like many that you held up you know a company like spring getting a $3.3 billion valuation last month and many others we think that's going to be the turn that leads to Capital being more Al allocated um in ways that that grow the pie so we're excited we think this is that moment that things are going to finally unlock and change that data point that's been stuck for a while well Heidi Patel and yourself leading this and raising a huge round rethink impact founder and managing partner Jenny Abramson we thank you for your time one other VC story that we're watching AI startup poolside is in talks for a new round of funding giving an evaluation of $3 billion all this before the company even released an initial product according to sources the company is set to raise $500 million in new financing with ban capital in talks to lead the investment round and that does it for this edition of BL technology you do not want to forget our podcast you can find it on the terminal as well as online on Apple Spotify and iHeart it'll be back with me next week have a wonderful weekend this is Bloomberg technology