1 00:00:00,119 --> 00:00:01,178 The biggest dividends 2 00:00:01,555 --> 00:00:02,295 of Brexit 3 00:00:02,832 --> 00:00:03,790 for the Uk, 4 00:00:05,066 --> 00:00:07,003 especially as it relates to science and technology, 5 00:00:07,874 --> 00:00:09,173 If you're looking at 6 00:00:09,552 --> 00:00:10,052 progressive 7 00:00:10,591 --> 00:00:13,069 regulation, we have a grown up mature conversation 8 00:00:13,069 --> 00:00:15,626 with regulators in this country where there 20 9 00:00:15,626 --> 00:00:17,796 minutes down the road we don't for pretend 10 00:00:17,796 --> 00:00:20,585 day don't exist, we say the technology and 11 00:00:20,585 --> 00:00:23,294 science and ubiquitous in society, of course, is 12 00:00:23,294 --> 00:00:26,254 gonna need guard. So let's... Let's work together. 13 00:00:28,800 --> 00:00:30,948 Welcome to activation on your host Peter high. 14 00:00:31,346 --> 00:00:32,857 My guest is saul Climb. 15 00:00:33,509 --> 00:00:35,822 Solves the c founder and managing partner of 16 00:00:35,902 --> 00:00:39,092 Phoenix Court, which includes 4 different venture capital 17 00:00:39,092 --> 00:00:41,006 firms, local globe, Latitude, 18 00:00:41,405 --> 00:00:41,905 Solar 19 00:00:42,283 --> 00:00:45,089 and base camp. He's of former partner at 20 00:00:45,089 --> 00:00:47,162 venture capital for index ventures as well. 21 00:00:48,118 --> 00:00:50,431 Sol was appointed as a nice executive director 22 00:00:50,431 --> 00:00:52,919 at the department for science innovation in technology, 23 00:00:53,079 --> 00:00:54,757 and is also a member of the council 24 00:00:54,757 --> 00:00:57,074 for science and technology, which advises the prime 25 00:00:57,074 --> 00:00:59,412 minister of the Uk on science and technology 26 00:00:59,471 --> 00:01:00,750 policy issues across governments. 27 00:01:01,404 --> 00:01:04,277 In 20 12, then Uk private minister, David 28 00:01:04,437 --> 00:01:06,991 Cameron, appointed saul to be the Uk's first 29 00:01:06,991 --> 00:01:08,986 technology business ambassador to Israel. 30 00:01:09,799 --> 00:01:10,778 And in 20 16 31 00:01:11,155 --> 00:01:14,106 saw awarded an Ob for services to business. 32 00:01:14,505 --> 00:01:16,680 I look forward to drawing upon saul diverse 33 00:01:16,738 --> 00:01:18,036 perspectives and experiences 34 00:01:18,413 --> 00:01:21,372 through this conversation. Saul welcome activation. It's great 35 00:01:21,372 --> 00:01:23,198 to speak with you today. Great to be 36 00:01:23,198 --> 00:01:25,501 here. Thanks for having me, Peter. Of course. 37 00:01:25,898 --> 00:01:28,677 Well, Saul, you are the c founder in 38 00:01:28,677 --> 00:01:31,872 managing partner of Phoenix Court, which I includes 39 00:01:32,031 --> 00:01:33,224 Mob globe, Latitude, 40 00:01:33,621 --> 00:01:36,325 Solar and base camp venture capital fund. So 41 00:01:36,325 --> 00:01:38,392 4 different funds under an umbrella, that is 42 00:01:38,471 --> 00:01:40,400 Phoenix Court. Talk a bit about that if 43 00:01:40,400 --> 00:01:40,639 you would, 44 00:01:41,357 --> 00:01:43,750 the the constitution of a, of an organization 45 00:01:43,750 --> 00:01:45,584 like Phoenix Court and the rationale and having 46 00:01:45,584 --> 00:01:47,599 4 different venture capital funds 47 00:01:48,296 --> 00:01:48,535 underneath it. 48 00:01:49,668 --> 00:01:50,387 Sure. Well, 49 00:01:51,346 --> 00:01:52,325 Phoenix Courts 50 00:01:53,024 --> 00:01:53,524 is 51 00:01:53,903 --> 00:01:55,660 the name of our space. 52 00:01:56,474 --> 00:01:57,032 Our home. 53 00:01:58,946 --> 00:01:59,446 And 54 00:02:00,701 --> 00:02:03,652 the reason why we've taken the approach of 55 00:02:03,652 --> 00:02:04,152 having 56 00:02:04,849 --> 00:02:05,349 different 57 00:02:06,379 --> 00:02:09,956 funds with different names is because each 1 58 00:02:09,956 --> 00:02:12,443 of the funds has a very specific 59 00:02:12,818 --> 00:02:13,318 strategy. 60 00:02:14,424 --> 00:02:14,924 And, 61 00:02:15,779 --> 00:02:18,752 you know, from my perspective, it's really important 62 00:02:18,810 --> 00:02:20,586 that all of the key stakeholders 63 00:02:20,963 --> 00:02:23,138 for those funds, most importantly, 64 00:02:23,769 --> 00:02:24,509 the founders 65 00:02:24,889 --> 00:02:25,769 that we back, 66 00:02:26,329 --> 00:02:27,549 the c investors 67 00:02:27,849 --> 00:02:29,049 that we work with, 68 00:02:29,849 --> 00:02:32,729 the Lps so invest in those funds really 69 00:02:32,729 --> 00:02:35,372 on and the job that each 1 of 70 00:02:35,372 --> 00:02:36,883 those funds are doing, 71 00:02:37,679 --> 00:02:39,531 and simply puts 72 00:02:40,638 --> 00:02:41,696 local globe 73 00:02:42,312 --> 00:02:45,044 is focused, and this is really our heritage 74 00:02:45,581 --> 00:02:47,972 at free seed and seed stage. 75 00:02:49,022 --> 00:02:49,522 So 76 00:02:50,131 --> 00:02:52,271 if you think about the air in which 77 00:02:52,271 --> 00:02:53,564 we operate broadly, 78 00:02:54,253 --> 00:02:56,100 Em, 1 percent 79 00:02:56,409 --> 00:02:58,189 of the 3800 80 00:02:58,250 --> 00:02:59,230 active Vcs 81 00:02:59,530 --> 00:03:02,430 in Em amir have ever picked 1 unicorn 82 00:03:02,650 --> 00:03:03,610 at seed stage. 83 00:03:04,424 --> 00:03:07,287 So your 90 ninth percentile if you've pick 84 00:03:07,287 --> 00:03:09,378 1 unicorn at seed stage 85 00:03:09,992 --> 00:03:10,628 in Em mirror. 86 00:03:11,519 --> 00:03:12,792 We've done 13. 87 00:03:13,349 --> 00:03:13,849 So 88 00:03:15,101 --> 00:03:17,887 the job of local globe is to be 89 00:03:17,887 --> 00:03:18,784 the best 90 00:03:19,494 --> 00:03:23,165 active Vc in Em, picking unicorns at seed 91 00:03:23,165 --> 00:03:25,480 stage. So obviously, if you're a seed specialist 92 00:03:25,480 --> 00:03:27,177 like local globe, you've done 93 00:03:28,205 --> 00:03:29,634 13, and it happens to be top of 94 00:03:29,634 --> 00:03:30,031 the list. 95 00:03:30,745 --> 00:03:33,127 If you're not a seat specialist like Ax 96 00:03:33,127 --> 00:03:33,444 xl, 97 00:03:34,000 --> 00:03:36,460 specializes at series a, You've picked free unicorn. 98 00:03:36,714 --> 00:03:39,498 At succeed. If you're not a deep specialist 99 00:03:39,498 --> 00:03:42,759 like Sequoia, you picked 6 unicorns at seed 100 00:03:42,759 --> 00:03:45,006 in Em. So a job of local globe 101 00:03:45,006 --> 00:03:47,821 is to be number 1 of all active 102 00:03:47,960 --> 00:03:48,460 investors 103 00:03:48,838 --> 00:03:50,056 in Em mere Vcs, 104 00:03:50,594 --> 00:03:52,111 picking unicorns at seed. 105 00:03:53,084 --> 00:03:54,759 The job of base camp, 106 00:03:55,716 --> 00:03:56,456 which is 107 00:03:56,913 --> 00:03:58,610 an angel Lp, 108 00:03:59,705 --> 00:04:02,425 open not too jargon, but just basically means 109 00:04:02,425 --> 00:04:05,209 we write small checks in other funds. We've 110 00:04:05,209 --> 00:04:07,436 been doing that for about 10 or 15 111 00:04:07,436 --> 00:04:07,833 years. 112 00:04:08,644 --> 00:04:10,583 We've got 60 plus 113 00:04:11,840 --> 00:04:12,340 relationships 114 00:04:13,598 --> 00:04:14,977 around 45 115 00:04:15,037 --> 00:04:16,155 percent in the Us. 116 00:04:17,606 --> 00:04:18,824 Around 45 117 00:04:18,882 --> 00:04:21,273 percent in Em amir and 10 percent in 118 00:04:21,352 --> 00:04:22,729 Apa pack. And those 119 00:04:23,265 --> 00:04:24,483 60 plus 120 00:04:24,954 --> 00:04:26,224 base camp funds, 121 00:04:27,018 --> 00:04:27,994 solo Gps, 122 00:04:29,002 --> 00:04:30,034 micro funds. 123 00:04:30,749 --> 00:04:32,281 If you look at 124 00:04:32,828 --> 00:04:36,159 their ability to pick unicorns at seed, 125 00:04:37,666 --> 00:04:38,960 they are number 5 126 00:04:39,570 --> 00:04:40,070 globally. 127 00:04:41,014 --> 00:04:44,205 In terms of all active Vcs. And if 128 00:04:44,205 --> 00:04:46,359 you look at their ability to pick a 129 00:04:46,359 --> 00:04:47,316 future unicorn, 130 00:04:48,525 --> 00:04:52,090 companies valued at 02:50 to to million to 131 00:04:52,090 --> 00:04:54,705 a billion at seed then number 1 globally. 132 00:04:55,354 --> 00:04:57,045 So if you think of the funnel 133 00:04:57,736 --> 00:05:01,015 of startups ups, venture back startups globally, 134 00:05:01,547 --> 00:05:03,889 they're are around a hundred and 50000 135 00:05:04,188 --> 00:05:06,665 startups globally that are still alive. 136 00:05:08,023 --> 00:05:09,242 And picking 137 00:05:10,593 --> 00:05:14,196 the 1 percent that could become a unicorn 138 00:05:15,208 --> 00:05:16,584 is really challenging. 139 00:05:17,198 --> 00:05:19,028 So what we've tried to do is to 140 00:05:19,028 --> 00:05:19,528 build 141 00:05:19,838 --> 00:05:20,338 signals 142 00:05:20,872 --> 00:05:22,304 at the top of the funnel, 143 00:05:22,861 --> 00:05:25,645 local globe number 1 in Em picking unicorns 144 00:05:25,645 --> 00:05:26,202 at seed, 145 00:05:26,774 --> 00:05:29,882 base camp number 5 globally picking unicorns at 146 00:05:29,882 --> 00:05:30,280 seeds. 147 00:05:30,918 --> 00:05:33,547 And then we have sister funds, 148 00:05:34,439 --> 00:05:34,939 latitude 149 00:05:35,875 --> 00:05:39,065 that focuses at the series b or c 150 00:05:39,065 --> 00:05:39,544 stage, 151 00:05:40,261 --> 00:05:43,053 and then solar, which we piloted a couple 152 00:05:43,053 --> 00:05:43,952 years ago 153 00:05:45,376 --> 00:05:47,760 with a partner in the Uk called M 154 00:05:47,760 --> 00:05:50,007 and g, which is a big domestic 155 00:05:50,778 --> 00:05:51,675 asset all, 156 00:05:53,099 --> 00:05:53,599 s 157 00:05:53,978 --> 00:05:57,174 starts at Series d and continues to hold 158 00:05:57,174 --> 00:06:00,631 its position through Ipo. So what loads 159 00:06:01,502 --> 00:06:04,141 funds allow us to do is very simply 160 00:06:05,780 --> 00:06:07,444 try being 1 of the best in the 161 00:06:07,444 --> 00:06:07,944 world 162 00:06:08,569 --> 00:06:09,069 picking 163 00:06:09,442 --> 00:06:12,461 unicorns at seed with local globe and base 164 00:06:12,461 --> 00:06:12,699 can, 165 00:06:13,335 --> 00:06:14,073 and then 166 00:06:14,447 --> 00:06:14,947 concentrates 167 00:06:15,480 --> 00:06:15,980 capital 168 00:06:17,163 --> 00:06:17,980 and time 169 00:06:18,909 --> 00:06:21,313 at series b c with latitude 170 00:06:22,003 --> 00:06:25,037 and series d plus solar with of companies 171 00:06:25,037 --> 00:06:28,464 that are most likely to become very material. 172 00:06:28,703 --> 00:06:31,014 And just to give you a sense of 173 00:06:31,014 --> 00:06:31,993 where we sat 174 00:06:32,464 --> 00:06:34,139 coming into 20 24. 175 00:06:34,857 --> 00:06:36,532 In 20 23, 176 00:06:37,010 --> 00:06:38,366 we had 46 177 00:06:38,366 --> 00:06:41,078 companies across our funds that did more than 178 00:06:41,078 --> 00:06:42,296 25000000 179 00:06:42,608 --> 00:06:43,323 in revenue, 180 00:06:44,436 --> 00:06:47,378 and we had 26 companies across our funds 181 00:06:47,378 --> 00:06:49,287 that did over a hundred million dollars in 182 00:06:49,287 --> 00:06:49,764 revenue. 183 00:06:50,814 --> 00:06:52,115 So your average 184 00:06:52,495 --> 00:06:52,995 venture 185 00:06:53,375 --> 00:06:56,914 funds would have maybe 1 percent of companies 186 00:06:57,055 --> 00:06:59,214 doing over a hundred million in revenue. We 187 00:06:59,214 --> 00:07:01,787 have over 10 percent of companies doing over 188 00:07:01,787 --> 00:07:03,225 a hundred million in revenue, 189 00:07:03,784 --> 00:07:06,341 and we think that's because we really focus 190 00:07:06,341 --> 00:07:07,241 on picking 191 00:07:07,953 --> 00:07:10,999 at seed, and then using the access 192 00:07:11,454 --> 00:07:13,920 insight and engagement that we have with those 193 00:07:13,920 --> 00:07:14,420 companies 194 00:07:15,209 --> 00:07:17,283 and others that we've met, but maybe not 195 00:07:17,283 --> 00:07:19,916 invested in all that base account managers have 196 00:07:19,916 --> 00:07:21,772 invested to concentrate capital 197 00:07:22,324 --> 00:07:25,358 with latitude and solar. So it gives us 198 00:07:25,358 --> 00:07:26,795 the ability really to... 199 00:07:27,673 --> 00:07:28,950 In the ideal world, 200 00:07:29,589 --> 00:07:30,647 ba founder, 201 00:07:31,679 --> 00:07:32,579 from seed 202 00:07:33,117 --> 00:07:34,556 through that public listing. 203 00:07:35,834 --> 00:07:37,272 At the risk of asking me to be 204 00:07:37,272 --> 00:07:39,324 a modest here soul? What is the differentiating 205 00:07:39,444 --> 00:07:41,990 factor, You you noted building signals and I'd 206 00:07:41,990 --> 00:07:43,501 love to understand what some of those signals 207 00:07:43,501 --> 00:07:46,366 are that are allowing you to to have 208 00:07:46,366 --> 00:07:47,718 such outs size performance. 209 00:07:49,164 --> 00:07:50,436 Well, I I... You know, 210 00:07:51,310 --> 00:07:54,194 having been in this industry and by this 211 00:07:54,250 --> 00:07:55,704 industry, I would say 212 00:07:56,014 --> 00:07:56,913 instead of the technology 213 00:07:57,371 --> 00:08:00,244 industry for 30 years now, which is over 214 00:08:00,244 --> 00:08:03,197 half my life and all of my professional 215 00:08:03,197 --> 00:08:03,516 life, 216 00:08:04,409 --> 00:08:07,067 in the Us in Europe in Israel. 217 00:08:07,446 --> 00:08:09,624 As a humanity's graduate, 218 00:08:11,122 --> 00:08:13,061 I can only give you a humanity's 219 00:08:13,440 --> 00:08:15,836 answer. You know, which really bothers us. So 220 00:08:15,836 --> 00:08:17,896 what we started to do about 8 years 221 00:08:17,896 --> 00:08:19,743 ago was to build data 222 00:08:20,669 --> 00:08:21,739 and so software 223 00:08:22,198 --> 00:08:25,255 around our workflow and process, and we use 224 00:08:25,474 --> 00:08:25,974 software, 225 00:08:26,832 --> 00:08:27,971 you know, to 226 00:08:29,004 --> 00:08:31,904 not just look at the hundred and 50000 227 00:08:32,605 --> 00:08:34,284 venture backed companies that are out there, which 228 00:08:34,365 --> 00:08:35,664 I think a lot of people 229 00:08:36,139 --> 00:08:37,725 do and have done. I mean, we started 230 00:08:37,725 --> 00:08:39,391 doing that 10 years ago when I was 231 00:08:39,391 --> 00:08:41,058 at index and that's kind of I would 232 00:08:41,058 --> 00:08:43,279 say table stakes for a big fund. 233 00:08:44,961 --> 00:08:48,220 I've always been less interested in third party 234 00:08:48,220 --> 00:08:50,604 data Have always been more interested in first 235 00:08:50,604 --> 00:08:51,478 party data. 236 00:08:52,288 --> 00:08:54,674 So what we've done really in the last 237 00:08:54,674 --> 00:08:57,458 8 years is build a lot of first 238 00:08:57,458 --> 00:08:57,958 party 239 00:08:58,492 --> 00:09:01,773 data and insights that have been baked into 240 00:09:01,773 --> 00:09:04,410 our software, our systems and our workflow. 241 00:09:05,049 --> 00:09:06,967 So if there are a hundred and 50000 242 00:09:06,967 --> 00:09:09,305 companies we could back, we've got 243 00:09:09,699 --> 00:09:10,519 10000 244 00:09:10,738 --> 00:09:11,238 companies 245 00:09:12,017 --> 00:09:12,996 in our pipeline, 246 00:09:14,014 --> 00:09:16,731 either that we've invested in or that we've 247 00:09:16,731 --> 00:09:18,030 previously met 248 00:09:18,504 --> 00:09:20,661 but didn't invest in because we were too 249 00:09:20,661 --> 00:09:23,138 stupid or we were too slow or they 250 00:09:23,138 --> 00:09:25,135 were different companies at the time. 251 00:09:25,789 --> 00:09:28,341 But we still continue to to track them 252 00:09:28,341 --> 00:09:30,016 and their progress. And then as I said, 253 00:09:30,176 --> 00:09:31,553 the sort of the 5000 254 00:09:31,771 --> 00:09:32,271 also 255 00:09:32,649 --> 00:09:36,094 underlying portfolio companies that these base managers have 256 00:09:36,094 --> 00:09:38,672 invested. So effectively, what you then have 257 00:09:39,051 --> 00:09:41,528 is sort of 4 to 5 percent of 258 00:09:41,528 --> 00:09:43,067 the global venture, 259 00:09:43,446 --> 00:09:46,899 but starting with the number 1 picker in 260 00:09:46,899 --> 00:09:49,959 a mirror seed, and the number 5 global 261 00:09:50,019 --> 00:09:50,519 picker 262 00:09:50,980 --> 00:09:53,720 at seed. So the signal should be higher 263 00:09:54,354 --> 00:09:55,492 then for latitude 264 00:09:56,268 --> 00:09:58,842 and solar to sort of think about capital 265 00:09:59,379 --> 00:10:01,373 concentration. But to be honest with you, even 266 00:10:01,373 --> 00:10:03,766 though that product is 8 years in the 267 00:10:03,845 --> 00:10:04,498 May king. 268 00:10:05,215 --> 00:10:06,751 As you would know, software 269 00:10:07,766 --> 00:10:10,395 grows, and it develops. And if it's baked 270 00:10:10,395 --> 00:10:11,511 into your workflow, 271 00:10:12,084 --> 00:10:13,830 you know, it just keeps on getting better. 272 00:10:13,989 --> 00:10:15,679 So we're actually only at 273 00:10:16,132 --> 00:10:17,902 version 0.3 274 00:10:18,354 --> 00:10:20,339 on that software right now. 275 00:10:21,867 --> 00:10:23,862 Remarkable progress, Salt. Thank you so much for 276 00:10:23,862 --> 00:10:25,617 for noting that. So I would love to 277 00:10:25,617 --> 00:10:27,373 dig a little bit further if I could 278 00:10:27,373 --> 00:10:29,537 into the European market. Obviously, it's a market. 279 00:10:29,696 --> 00:10:31,760 You know quite well as someone who has 280 00:10:31,760 --> 00:10:33,904 spent so much time both growing up as 281 00:10:33,904 --> 00:10:36,922 well as, professionally in Europe, and especially in 282 00:10:36,922 --> 00:10:37,557 the Uk. 283 00:10:38,289 --> 00:10:40,923 Among other places as you previously noted. It's 284 00:10:40,923 --> 00:10:42,919 fascinating to see we were just if we've 285 00:10:42,919 --> 00:10:44,675 spoke pre previously about the fact that if 286 00:10:44,675 --> 00:10:46,591 you look at the top companies by market 287 00:10:46,591 --> 00:10:48,832 cap, only 3 of the top 30 are 288 00:10:48,832 --> 00:10:51,079 in Europe. And only 1 of those 3 289 00:10:51,214 --> 00:10:52,270 is a technology 290 00:10:52,722 --> 00:10:54,390 organization. You know, by contrast, we're here in 291 00:10:54,628 --> 00:10:56,947 Us. The top 5 of my... By top 292 00:10:56,947 --> 00:10:59,966 30 companies you mean in all sectors? Yeah. 293 00:11:00,284 --> 00:11:03,621 Across sectors, that... Exactly mark market capitalization based. 294 00:11:04,034 --> 00:11:05,950 And, the top 5, anywhere in the world, 295 00:11:06,029 --> 00:11:08,025 are Microsoft Apple Nvidia, alphabet, 296 00:11:08,583 --> 00:11:11,217 Amazon, all Us based, all technology centric. And 297 00:11:11,217 --> 00:11:12,335 then if you go further down a list, 298 00:11:12,668 --> 00:11:14,574 a lot more Us based companies and a 299 00:11:14,574 --> 00:11:17,353 lot of those technology based as well. Now, 300 00:11:17,512 --> 00:11:18,885 you're talking to about your 301 00:11:19,497 --> 00:11:21,165 rationale reason for being, 302 00:11:22,294 --> 00:11:24,211 optimistic enough to be an investor. Or and 303 00:11:24,211 --> 00:11:25,729 and maybe that's the wrong way of framing 304 00:11:25,729 --> 00:11:27,327 and maybe it is just that you've got 305 00:11:27,327 --> 00:11:28,605 the tools to be able to pick in 306 00:11:28,605 --> 00:11:31,350 a very difficult environment to pick the winners 307 00:11:31,725 --> 00:11:33,793 relative to sort of a a place like, 308 00:11:34,111 --> 00:11:34,748 here in the Us. 309 00:11:36,354 --> 00:11:38,609 Look, I I think it's a great question 310 00:11:39,226 --> 00:11:42,338 and, you know, the problem with a snapshots, 311 00:11:42,657 --> 00:11:45,544 you know, is it's really backward looking. It's 312 00:11:45,544 --> 00:11:48,016 not forward looking. So, you know, if you 313 00:11:48,016 --> 00:11:49,771 look at... And I do this a lot, 314 00:11:50,010 --> 00:11:52,802 as you as you rightly say, 7 actually 315 00:11:52,802 --> 00:11:54,811 out of the top in companies in the 316 00:11:54,811 --> 00:11:55,311 world 317 00:11:55,689 --> 00:11:56,747 are not only 318 00:11:57,204 --> 00:12:00,257 tech companies, but their venture backed tech companies. 319 00:12:00,970 --> 00:12:03,450 What 1 of the 7 is actually a 320 00:12:03,450 --> 00:12:04,670 set of a a Taiwanese, 321 00:12:05,450 --> 00:12:06,190 tech companies, 322 00:12:06,730 --> 00:12:09,825 Ts c that was backed by European c 323 00:12:09,944 --> 00:12:11,081 we see actually philips 324 00:12:11,776 --> 00:12:14,086 and and a sort of a sovereign, the 325 00:12:14,086 --> 00:12:16,158 country. But in the same way, you know, 326 00:12:17,129 --> 00:12:18,730 so that you got 7 other the world's 327 00:12:18,730 --> 00:12:20,589 top 10 companies that are 328 00:12:20,889 --> 00:12:22,570 tech companies. As you said, and all of 329 00:12:22,570 --> 00:12:24,824 them had venture backing and you know, none 330 00:12:24,824 --> 00:12:27,460 of them existed 40, 50 years ago. So 331 00:12:27,460 --> 00:12:28,658 the way I would sort of look at 332 00:12:28,658 --> 00:12:31,627 this is Zoom right outs and say, in 333 00:12:31,627 --> 00:12:34,884 a sense venture capital started in 19 71 334 00:12:34,884 --> 00:12:37,187 in Silicon Valley with the birth of the 335 00:12:37,187 --> 00:12:39,514 micro processor. And the first age 336 00:12:40,205 --> 00:12:40,705 adventure 337 00:12:41,174 --> 00:12:43,654 started in 19 71 a year after I 338 00:12:43,654 --> 00:12:46,054 was born and I would argue ended with 339 00:12:46,054 --> 00:12:48,774 the Nets scape Ipo, which is, like, at 340 00:12:48,774 --> 00:12:49,914 the beginning of my 341 00:12:50,389 --> 00:12:51,048 kind of 342 00:12:51,501 --> 00:12:52,692 professional career, 343 00:12:53,327 --> 00:12:54,757 94 95. 344 00:12:55,392 --> 00:12:56,925 And in that first age 345 00:12:57,298 --> 00:12:58,275 adventure, the 346 00:12:58,981 --> 00:13:01,602 iconic companies that were created in that first 347 00:13:01,602 --> 00:13:04,961 age adventure were, let's call it 80 percent 348 00:13:05,176 --> 00:13:06,050 hard tech. 349 00:13:07,097 --> 00:13:07,597 Stem, 350 00:13:08,289 --> 00:13:08,789 Pcs, 351 00:13:09,798 --> 00:13:10,298 networking. 352 00:13:10,672 --> 00:13:14,032 I'm looking at you that micro... At Cisco, 353 00:13:14,644 --> 00:13:15,938 Intel apple, 354 00:13:17,683 --> 00:13:19,601 and then, you know, the soft tech winners 355 00:13:19,601 --> 00:13:21,599 there were Microsoft oracle. 356 00:13:22,718 --> 00:13:23,857 The next age 357 00:13:24,556 --> 00:13:25,775 adventure was 358 00:13:26,328 --> 00:13:28,794 starting with the Nets Ipo, let's say it 359 00:13:28,794 --> 00:13:29,294 ended 360 00:13:29,988 --> 00:13:32,397 when the WH0 361 00:13:32,772 --> 00:13:35,741 said Covid was a global pandemic. And arguably, 362 00:13:35,901 --> 00:13:37,898 the next stage flipped it on its head 363 00:13:37,898 --> 00:13:39,816 and it was 80 percent soft tech. 364 00:13:40,869 --> 00:13:41,349 Google, 365 00:13:42,867 --> 00:13:43,267 Amazon, 366 00:13:43,826 --> 00:13:44,326 Netflix, 367 00:13:45,185 --> 00:13:45,685 Uber, 368 00:13:46,144 --> 00:13:48,222 Air airbnb and, the list goes on. And 369 00:13:48,222 --> 00:13:50,595 20 percent, maybe but only 10 percent hot 370 00:13:50,952 --> 00:13:52,543 And the way we sort of look at 371 00:13:52,543 --> 00:13:53,521 the world is, 372 00:13:53,896 --> 00:13:55,032 you know, the next 373 00:13:56,680 --> 00:13:56,918 adventure. 374 00:13:57,729 --> 00:13:59,792 Is gonna be more like 50 50. And 375 00:13:59,792 --> 00:14:01,618 what is hard tech? 376 00:14:02,253 --> 00:14:05,531 It's not just soft tech, but it's technology 377 00:14:05,984 --> 00:14:07,134 that is for facilitated 378 00:14:07,587 --> 00:14:08,087 by 379 00:14:08,540 --> 00:14:09,040 radical 380 00:14:09,731 --> 00:14:11,161 breakthroughs in science, 381 00:14:12,432 --> 00:14:13,488 engineering and technology. 382 00:14:15,068 --> 00:14:16,206 And if you look 383 00:14:16,742 --> 00:14:18,735 outside my window, I can see the 384 00:14:19,851 --> 00:14:22,162 Institute. Now the Quick institute is not the 385 00:14:22,162 --> 00:14:22,662 broad 386 00:14:23,053 --> 00:14:25,519 shoots, but it is the world's second best, 387 00:14:26,076 --> 00:14:27,610 sensor for genomics 388 00:14:28,144 --> 00:14:29,678 and computational biology. 389 00:14:30,069 --> 00:14:31,208 So there 4000 390 00:14:31,426 --> 00:14:34,620 researchers across the road and 4 nobel prize 391 00:14:34,620 --> 00:14:37,494 winners. And then if I walk 5 minutes 392 00:14:37,494 --> 00:14:37,994 literally 393 00:14:38,372 --> 00:14:41,514 to some pancreas in Kings cross the global 394 00:14:41,967 --> 00:14:42,467 headquarters 395 00:14:43,078 --> 00:14:44,927 note the global headquarters 396 00:14:45,539 --> 00:14:46,356 of alphabet 397 00:14:46,967 --> 00:14:47,467 Ai 398 00:14:48,237 --> 00:14:49,608 division. Called deep mind, 399 00:14:50,327 --> 00:14:52,484 you know, which is also spun off iso 400 00:14:52,484 --> 00:14:52,984 morph, 401 00:14:53,682 --> 00:14:55,461 which, you know, is 402 00:14:56,412 --> 00:14:58,504 operating at the intersection of Ai 403 00:14:58,960 --> 00:15:02,701 and computational chemistry and biology. If I get 404 00:15:02,701 --> 00:15:03,599 on the train, 405 00:15:04,308 --> 00:15:08,041 at Kings cross and avoid platform 9 and 406 00:15:08,041 --> 00:15:10,582 3 quarters and don't get a hogwarts. I 407 00:15:10,582 --> 00:15:11,480 got a Cambridge, 408 00:15:12,584 --> 00:15:14,739 you know, I'm at 1 of the world's, 409 00:15:15,139 --> 00:15:16,895 not Britain not Europe, 410 00:15:17,374 --> 00:15:20,167 1 of the world's top 3 universities, Cambridge 411 00:15:20,247 --> 00:15:20,747 University, 412 00:15:21,539 --> 00:15:23,687 if I go to the other direction, I'm 413 00:15:23,687 --> 00:15:24,903 at 1 of the world's 414 00:15:25,437 --> 00:15:28,005 top 3 universities called Oxford University. 415 00:15:28,873 --> 00:15:31,421 If I go 20 30 minute walk, I 416 00:15:31,421 --> 00:15:32,160 at Uc, 417 00:15:32,536 --> 00:15:33,651 top 10 global, 418 00:15:34,129 --> 00:15:36,438 and imperial. So we've got 4 out of 419 00:15:36,438 --> 00:15:37,097 the world 420 00:15:37,408 --> 00:15:38,305 top 10 421 00:15:38,679 --> 00:15:39,179 universities 422 00:15:40,029 --> 00:15:41,800 within an hour or so 423 00:15:42,332 --> 00:15:45,056 from the office. And if you believe that 424 00:15:46,237 --> 00:15:49,273 innovation is no longer just the preserve 425 00:15:49,723 --> 00:15:52,021 of Palo Alto in Silicon Valley. 426 00:15:52,908 --> 00:15:55,920 But you believe that innovation is now, you 427 00:15:55,920 --> 00:15:57,372 know, the preserve 428 00:15:57,823 --> 00:16:00,414 of an ecosystem that's only been doing it 429 00:16:00,534 --> 00:16:03,431 for 20 years. Remember we are 30 years 430 00:16:03,810 --> 00:16:05,589 behind in our development. 431 00:16:07,086 --> 00:16:08,146 You could argue 432 00:16:08,858 --> 00:16:11,087 that if you did 1 of those day 433 00:16:11,087 --> 00:16:12,065 0 lines 434 00:16:12,441 --> 00:16:15,306 of how fast did Skype gets to a 435 00:16:15,306 --> 00:16:16,341 hundred million users, 436 00:16:16,833 --> 00:16:19,062 how fast did Instagram gets to a hundred 437 00:16:19,062 --> 00:16:21,870 million users? How fast did chat Gp 438 00:16:22,404 --> 00:16:24,871 gets to a hundred million users. We're ahead 439 00:16:24,871 --> 00:16:25,269 of you. 440 00:16:27,036 --> 00:16:29,744 Very, very interesting. I I... You know, as 441 00:16:29,744 --> 00:16:32,373 as somebody who also has government 442 00:16:32,930 --> 00:16:35,972 appointments as well. I I And in addition 443 00:16:35,972 --> 00:16:38,282 to all that you've described and and your 444 00:16:38,282 --> 00:16:39,977 investments in in startups 445 00:16:41,150 --> 00:16:43,460 across Europe. Talk a bit about your your 446 00:16:43,460 --> 00:16:44,677 perspective on 447 00:16:44,988 --> 00:16:46,738 the rule of Brexit in all of this. 448 00:16:46,977 --> 00:16:50,079 As you talk about the inherent advantages, which 449 00:16:50,079 --> 00:16:51,670 are many and and and, 450 00:16:52,084 --> 00:16:54,399 very well catalog a moment ago. It would... 451 00:16:54,638 --> 00:16:55,756 It seem at least for most 452 00:16:56,474 --> 00:16:58,550 authenticator that that that die... I'm in conversation 453 00:16:58,550 --> 00:17:00,327 with. But that's an impediment 454 00:17:01,278 --> 00:17:03,113 that the... To some of what you've described 455 00:17:03,113 --> 00:17:04,628 as well, but it would love your perspective 456 00:17:04,628 --> 00:17:04,788 on it. 457 00:17:05,984 --> 00:17:07,282 But my perspective 458 00:17:07,739 --> 00:17:09,914 on this is partially again 459 00:17:10,371 --> 00:17:11,762 informed by humanities 460 00:17:12,217 --> 00:17:14,762 and partially informed by social science. 461 00:17:15,876 --> 00:17:17,149 So, you know, 462 00:17:18,118 --> 00:17:20,048 although I did study history 463 00:17:20,580 --> 00:17:23,678 to to certainly my late teens, I remember, 464 00:17:23,916 --> 00:17:25,584 you know, even as a young kid, 465 00:17:26,474 --> 00:17:28,174 reading about the norman 466 00:17:28,634 --> 00:17:30,954 invasion, and the battle of Hastings in 10 467 00:17:30,954 --> 00:17:31,835 66, 468 00:17:32,794 --> 00:17:33,914 and instead of, like, 469 00:17:34,968 --> 00:17:37,221 realizing that, you know, we've been trading 470 00:17:37,995 --> 00:17:40,625 with France a thousand years now. 471 00:17:42,791 --> 00:17:44,943 And there's lots of things that have happened 472 00:17:44,943 --> 00:17:47,276 in those thousand years there wars 473 00:17:48,609 --> 00:17:49,088 area. 474 00:17:50,299 --> 00:17:50,779 You know, 475 00:17:52,059 --> 00:17:52,559 matt, 476 00:17:53,980 --> 00:17:54,480 Bismarck. 477 00:17:55,740 --> 00:17:57,419 I mean, you name it. Right? 478 00:17:58,154 --> 00:18:00,063 And you know what? We still trade with 479 00:18:00,222 --> 00:18:00,620 France. 480 00:18:01,257 --> 00:18:02,768 If I wanna go to Paris, 481 00:18:03,564 --> 00:18:05,553 I'm sitting in a room called Paris, it's 482 00:18:05,553 --> 00:18:07,478 closer for me to get to paris on 483 00:18:07,478 --> 00:18:09,228 the Euro star, than it is for you 484 00:18:09,228 --> 00:18:11,399 to go from San Francisco to La 485 00:18:12,092 --> 00:18:13,683 or from New York to Boston. 486 00:18:14,812 --> 00:18:15,312 So, 487 00:18:15,688 --> 00:18:17,383 you know, there is the sort of the 488 00:18:18,555 --> 00:18:20,704 historian in in me that says, if you 489 00:18:20,704 --> 00:18:22,217 take a thousand year view, 490 00:18:22,949 --> 00:18:25,339 kinda get over it. And then there is 491 00:18:25,339 --> 00:18:26,556 the social scientist, 492 00:18:28,446 --> 00:18:30,597 which is, you know, I'm a big fan 493 00:18:30,597 --> 00:18:33,724 of Carlos Perez is work, which you may 494 00:18:33,724 --> 00:18:34,224 be 495 00:18:34,684 --> 00:18:37,105 familiar with, but she talks about, 496 00:18:37,724 --> 00:18:38,204 you know, 497 00:18:38,765 --> 00:18:39,505 the waves 498 00:18:41,417 --> 00:18:42,555 or of 499 00:18:43,013 --> 00:18:45,407 sort of innovation. And, you know, she talks 500 00:18:45,407 --> 00:18:48,360 about 50 hundred year waves. And again, 501 00:18:48,854 --> 00:18:50,553 you know, if you go back to 502 00:18:51,251 --> 00:18:52,529 the information aid, 503 00:18:53,568 --> 00:18:57,039 which is starting in sort of 9 71 504 00:18:57,258 --> 00:18:58,717 with the birth of the semiconductor, 505 00:18:59,336 --> 00:19:00,475 you connect semiconductors, 506 00:19:01,814 --> 00:19:05,031 to computers, you connect computers to networks, 507 00:19:06,063 --> 00:19:07,419 that gets us the Internet. 508 00:19:08,057 --> 00:19:09,812 You know, you put data in the cloud. 509 00:19:10,051 --> 00:19:12,944 That gets us the cloud. You have devices 510 00:19:13,082 --> 00:19:15,156 that are connected to the Internet and people 511 00:19:15,156 --> 00:19:17,745 can put in pockets, that gets us mobile, 512 00:19:18,601 --> 00:19:21,174 I'm not even gotten to Ai or genomics 513 00:19:21,233 --> 00:19:21,951 or whatever. 514 00:19:22,509 --> 00:19:24,843 Yes. If you just look at the proven 515 00:19:24,902 --> 00:19:25,300 waves, 516 00:19:26,111 --> 00:19:28,176 That means and Pcs, number 1, 517 00:19:30,003 --> 00:19:32,386 Internet number 2, cloud number 3, 518 00:19:32,942 --> 00:19:37,409 mobile number 04:52 519 00:19:37,409 --> 00:19:38,546 years after 520 00:19:39,479 --> 00:19:39,979 t 521 00:19:41,707 --> 00:19:42,503 were with us. 522 00:19:43,394 --> 00:19:45,385 You know, what is the most talked about 523 00:19:45,385 --> 00:19:47,774 company in the world today? It's Nvidia? 524 00:19:48,650 --> 00:19:51,198 You know, what else has being talked about 525 00:19:51,198 --> 00:19:53,605 a lot in last year or so are. 526 00:19:54,801 --> 00:19:56,258 You know, what company 527 00:19:57,194 --> 00:19:59,050 is likely to go public 528 00:19:59,427 --> 00:20:00,246 in London 529 00:20:00,623 --> 00:20:01,522 in the next 530 00:20:02,315 --> 00:20:03,034 4 weeks, 531 00:20:03,914 --> 00:20:04,654 a semiconductor 532 00:20:04,954 --> 00:20:05,434 company. 533 00:20:06,154 --> 00:20:09,214 You know, what is the most valuable European 534 00:20:10,009 --> 00:20:12,960 technology company that's within a 4 hour train 535 00:20:12,960 --> 00:20:14,417 ride from here Asm, 536 00:20:15,512 --> 00:20:17,608 you know, supplier to the semiconductor 537 00:20:18,224 --> 00:20:19,681 industry. We talked about 538 00:20:20,315 --> 00:20:21,434 Ps c, 539 00:20:22,075 --> 00:20:24,414 how much would Philips stake 540 00:20:25,195 --> 00:20:27,695 have been worth today, the 27 541 00:20:27,914 --> 00:20:28,414 percent 542 00:20:28,808 --> 00:20:30,796 that they bought for 50000000 543 00:20:30,796 --> 00:20:31,296 dollars 544 00:20:31,671 --> 00:20:35,806 and then sold their whole position in 2008. 545 00:20:36,045 --> 00:20:37,874 How much would that have been worth today? 546 00:20:38,843 --> 00:20:40,354 230000000000 547 00:20:40,354 --> 00:20:40,672 dollars. 548 00:20:42,025 --> 00:20:44,832 So my point in all of that is 549 00:20:45,699 --> 00:20:46,177 you know, 550 00:20:46,814 --> 00:20:48,350 small political cycles 551 00:20:48,885 --> 00:20:50,500 like the European Union 552 00:20:51,195 --> 00:20:52,013 or Brexit 553 00:20:52,549 --> 00:20:54,005 are way smaller 554 00:20:54,953 --> 00:20:57,409 then the waves that we're talking about here 555 00:20:57,409 --> 00:20:58,914 when we talk about innovation. 556 00:20:59,865 --> 00:21:01,529 So that's the social science lens. 557 00:21:02,099 --> 00:21:03,393 And then the historical 558 00:21:03,767 --> 00:21:06,944 lens, the human bean lens is like, people 559 00:21:06,944 --> 00:21:09,566 still work with each other. People still trade 560 00:21:09,566 --> 00:21:11,573 and you know what. There's this really cool 561 00:21:11,573 --> 00:21:13,432 thing that Ben ser 562 00:21:13,891 --> 00:21:15,030 helped to develop 563 00:21:15,490 --> 00:21:17,508 through da funding called Tcp 564 00:21:17,887 --> 00:21:19,965 Ip, that is the transport layer. 565 00:21:20,858 --> 00:21:21,677 For Paris 566 00:21:22,213 --> 00:21:24,365 information age. And last time I checked, we 567 00:21:24,365 --> 00:21:27,553 were not firewall in conversations with France, with 568 00:21:27,712 --> 00:21:28,212 Germany, 569 00:21:28,604 --> 00:21:31,161 with Belgium or anyone else in the European 570 00:21:31,241 --> 00:21:31,641 Union. 571 00:21:32,759 --> 00:21:33,499 And arguably, 572 00:21:33,878 --> 00:21:36,435 and I voted remain to be clear, 573 00:21:37,089 --> 00:21:38,147 The only dividend 574 00:21:39,083 --> 00:21:40,301 or the biggest dividends 575 00:21:40,678 --> 00:21:41,418 of Brexit 576 00:21:41,954 --> 00:21:42,912 for the Uk, 577 00:21:44,188 --> 00:21:46,123 especially as it relates to science and technology, 578 00:21:47,233 --> 00:21:49,144 is that we have, obviously, all of the 579 00:21:49,144 --> 00:21:50,440 same historical, 580 00:21:50,976 --> 00:21:54,081 social science, advantages. You know, we're back in 581 00:21:54,081 --> 00:21:56,405 horizon, and we're working closely with all of 582 00:21:56,405 --> 00:21:58,019 our European colleagues, 583 00:21:58,475 --> 00:22:01,204 we're coin investing in 1 another's markets. 584 00:22:01,579 --> 00:22:03,592 But if you're looking at 585 00:22:03,983 --> 00:22:04,483 progressive 586 00:22:05,020 --> 00:22:08,368 regulation, which whilst time I checked, most leaders 587 00:22:08,368 --> 00:22:11,238 of Us companies were going to congress and 588 00:22:11,238 --> 00:22:11,738 saying 589 00:22:12,450 --> 00:22:14,529 please regulate me like this. 590 00:22:15,730 --> 00:22:17,910 You know, we have a grown up mature 591 00:22:18,130 --> 00:22:20,542 conversation with regulators in this country where there 592 00:22:20,542 --> 00:22:22,538 20 minutes down the road, and we don't 593 00:22:22,538 --> 00:22:25,970 for 10 days don't exist like Bill early 594 00:22:25,970 --> 00:22:27,826 and and others on the West Coast 595 00:22:28,299 --> 00:22:30,779 you know, we say the technology and science 596 00:22:30,779 --> 00:22:33,420 and ubiquitous in society, of course, it's gonna 597 00:22:33,420 --> 00:22:36,059 need Guard rails. So let's let's work together. 598 00:22:37,751 --> 00:22:39,660 Real really great perspectives. Thank you so much 599 00:22:39,660 --> 00:22:41,012 for sharing those. And I'm I wanna double 600 00:22:41,012 --> 00:22:42,443 click on a couple things you said. You 601 00:22:42,443 --> 00:22:44,670 you've you've spoken about the third age of 602 00:22:44,670 --> 00:22:46,976 venture, a, a new Era that's emerging 1 603 00:22:46,976 --> 00:22:49,542 with policy alignment and a balance of soft 604 00:22:49,542 --> 00:22:52,095 and hard tactical you noted 50 50, is 605 00:22:52,095 --> 00:22:54,647 your projection. And a commitment to long term 606 00:22:54,647 --> 00:22:56,721 impactful solutions to societal challenges. 607 00:22:57,374 --> 00:22:58,810 I would love to have you talk a 608 00:22:58,810 --> 00:23:01,543 bit about, yeah, as you are making investments 609 00:23:01,761 --> 00:23:03,276 putting your money where your mouth is on 610 00:23:03,276 --> 00:23:05,270 this. Talk a bit about, do some of 611 00:23:05,270 --> 00:23:06,626 the things that excite you most as you 612 00:23:06,626 --> 00:23:07,997 look to third age venture. 613 00:23:09,193 --> 00:23:09,512 Well, 614 00:23:10,150 --> 00:23:11,904 in terms of putting our money where Our 615 00:23:11,904 --> 00:23:14,058 mouth is, the vehicle that we didn't talk 616 00:23:14,058 --> 00:23:16,291 about at the beginning, which is actually out... 617 00:23:16,610 --> 00:23:17,681 The fifth fund 618 00:23:18,292 --> 00:23:19,800 for 1 of a better word or the 619 00:23:19,800 --> 00:23:20,594 fifth estates, 620 00:23:21,150 --> 00:23:23,238 you know, within Phoenix court, 621 00:23:24,579 --> 00:23:27,199 When we created Phoenix courses as instead of 622 00:23:27,199 --> 00:23:30,614 an institutional vehicle in 20 15, we made 623 00:23:30,614 --> 00:23:33,472 a decision to do the following things Warren, 624 00:23:34,044 --> 00:23:36,776 allocate 10 percent of profits in the management 625 00:23:36,914 --> 00:23:37,414 company 626 00:23:37,871 --> 00:23:40,183 and 2 percent of carry in all of 627 00:23:40,183 --> 00:23:42,177 our funds into a foundation. 628 00:23:42,989 --> 00:23:46,744 The foundation is designed to make real to 629 00:23:46,744 --> 00:23:49,061 put our money where our mouth is, our 630 00:23:49,061 --> 00:23:49,561 purpose, 631 00:23:50,353 --> 00:23:52,341 as a business, which is to be a 632 00:23:52,341 --> 00:23:54,727 good long term neighbor and to help people 633 00:23:54,727 --> 00:23:57,749 realize their full potential. And being a good 634 00:23:57,749 --> 00:24:00,078 long term neighbor as anyone knows 635 00:24:00,867 --> 00:24:01,665 starts at home. 636 00:24:02,861 --> 00:24:03,361 So 637 00:24:03,978 --> 00:24:05,754 80 percent of the 638 00:24:06,131 --> 00:24:06,631 allocation 639 00:24:07,088 --> 00:24:09,800 from our foundation, Phoenix court works, 640 00:24:10,294 --> 00:24:13,164 works is there because it's very active in 641 00:24:13,164 --> 00:24:15,954 our neighborhood. 80 percent goes within a square 642 00:24:15,954 --> 00:24:18,846 mile of our office, and that supports around 643 00:24:18,999 --> 00:24:20,296 currently 35 644 00:24:20,832 --> 00:24:23,859 organizations, including the primary schools, the secondary schools, 645 00:24:24,018 --> 00:24:25,236 the doctor surgeries, 646 00:24:26,424 --> 00:24:27,561 the youth centers, 647 00:24:27,937 --> 00:24:30,487 the social enterprises, and you could say, like, 648 00:24:30,885 --> 00:24:32,797 why are you doing that in the middle 649 00:24:32,797 --> 00:24:34,630 of, you know, you got Google across the 650 00:24:34,630 --> 00:24:37,373 road. You got matter Across road. You've got 651 00:24:37,509 --> 00:24:40,292 deep mind. You've got universal music. You've got 652 00:24:40,372 --> 00:24:42,916 H. You got all of these universities. You've 653 00:24:42,916 --> 00:24:45,794 got the British library. Like, it's like, this 654 00:24:45,794 --> 00:24:49,001 is 1 of the richest cities in AG7 655 00:24:49,058 --> 00:24:49,536 economy. 656 00:24:50,173 --> 00:24:52,084 What do you doing it? Like, what's wrong 657 00:24:52,084 --> 00:24:54,488 with your neighborhood? Well I'll tell you If 658 00:24:54,488 --> 00:24:57,040 you are the neighborhood between 3 of the 659 00:24:57,040 --> 00:24:59,354 biggest transport hubs in 1 of the biggest 660 00:24:59,354 --> 00:25:01,268 cities in the world for the last hundred 661 00:25:01,268 --> 00:25:03,581 and 50 years, you're also the poorest neighbor. 662 00:25:05,112 --> 00:25:06,091 To this neighborhood, 663 00:25:06,549 --> 00:25:08,544 the health outcomes for people who live in 664 00:25:08,544 --> 00:25:10,700 this neighborhood or, if you're an adult, you'll 665 00:25:10,700 --> 00:25:12,695 live 20 years less than in high gates. 666 00:25:13,029 --> 00:25:15,267 Which is 15 20 minutes off the road. 667 00:25:16,306 --> 00:25:18,623 If you are a kid, 5 out of 668 00:25:18,623 --> 00:25:19,262 10 kids, 669 00:25:20,141 --> 00:25:21,340 receive preschool meals, 670 00:25:21,833 --> 00:25:25,086 because their parents at a household level earn 671 00:25:25,086 --> 00:25:26,538 less than 10000 672 00:25:26,673 --> 00:25:27,546 dollars a year. 673 00:25:29,950 --> 00:25:32,429 If you are a kid in Summers town, 674 00:25:32,669 --> 00:25:35,149 which is our neighborhood, 7 out of 10 675 00:25:35,149 --> 00:25:35,649 kids 676 00:25:35,950 --> 00:25:37,730 are on social care. So 677 00:25:38,125 --> 00:25:39,505 you know, when we say 678 00:25:39,884 --> 00:25:41,744 being a good long term neighbor 679 00:25:42,204 --> 00:25:45,184 and helping people realize their full potential 680 00:25:45,579 --> 00:25:47,035 that starts in our neighborhoods, 681 00:25:47,411 --> 00:25:48,208 80 percent, 682 00:25:49,084 --> 00:25:51,712 and it's real because it costs us. 683 00:25:52,430 --> 00:25:55,234 It's from the profit to the management company 684 00:25:55,234 --> 00:25:57,491 is from the carry of the fund. So 685 00:25:58,030 --> 00:26:01,145 as far as I'm aware, other than generation, 686 00:26:02,039 --> 00:26:04,032 I think we're 1 of the few bonds 687 00:26:04,032 --> 00:26:05,329 in the private markets 688 00:26:05,866 --> 00:26:07,620 who who do this. And we do it, 689 00:26:07,859 --> 00:26:09,533 you know, not just because we think it's 690 00:26:09,533 --> 00:26:12,652 the right thing to do. But because actually, 691 00:26:12,891 --> 00:26:14,742 to go back to why 692 00:26:15,435 --> 00:26:18,138 do I feel like this is new Palo 693 00:26:18,138 --> 00:26:20,303 alto as I said, we've got all of 694 00:26:20,303 --> 00:26:23,351 the innovation capabilities, the science, the technology, 695 00:26:23,886 --> 00:26:26,355 the capital base, you know, the number of 696 00:26:26,355 --> 00:26:26,855 founders, 697 00:26:27,391 --> 00:26:30,191 success launch entrepreneur. That flywheel is turning. Yes. 698 00:26:30,350 --> 00:26:32,499 It's only been turning for 20 years not 699 00:26:32,499 --> 00:26:34,727 50 years. But, you know, as you know, 700 00:26:34,966 --> 00:26:37,539 we're flywheel start to turn, they start to 701 00:26:37,539 --> 00:26:38,820 turn fast and actually, 702 00:26:39,299 --> 00:26:41,799 new Palo alto. So after the bay is 703 00:26:41,940 --> 00:26:44,100 second only to the Bay area globally, 704 00:26:44,594 --> 00:26:46,508 in terms of an innovation cluster, 705 00:26:46,907 --> 00:26:49,880 in terms of outcomes access to capital, 706 00:26:50,257 --> 00:26:51,055 and importantly, 707 00:26:51,613 --> 00:26:53,687 Ip and R and d talent, 708 00:26:54,979 --> 00:26:57,057 We talk about a new palo alto, so 709 00:26:57,057 --> 00:26:59,054 not as... Oh, we wanna be the next 710 00:26:59,134 --> 00:27:00,013 Silicon Valley. 711 00:27:01,052 --> 00:27:02,890 I don't wanna be the next silicon Valley. 712 00:27:03,304 --> 00:27:05,770 You know, Silicon Valley will always be Mecca 713 00:27:05,770 --> 00:27:07,702 and Mode medina for startups. 714 00:27:08,634 --> 00:27:10,009 We wanna be a different 715 00:27:10,543 --> 00:27:11,418 silicon Valley. 716 00:27:12,149 --> 00:27:13,503 So when we say new, 717 00:27:14,220 --> 00:27:15,494 it's not the next. 718 00:27:16,051 --> 00:27:18,839 It's a different 1, and it's 1 that 719 00:27:18,839 --> 00:27:20,135 is based on values, 720 00:27:21,085 --> 00:27:21,904 and governance, 721 00:27:23,085 --> 00:27:25,345 not just a single stakeholder 722 00:27:25,724 --> 00:27:26,224 economy 723 00:27:27,164 --> 00:27:28,865 where the stakeholder is 724 00:27:29,258 --> 00:27:29,758 the 725 00:27:30,449 --> 00:27:30,949 investor, 726 00:27:31,718 --> 00:27:32,591 or the founder. 727 00:27:33,385 --> 00:27:35,846 Because I think it's successful as Silicon Valley 728 00:27:35,846 --> 00:27:37,690 has been in to be clear, the Bay 729 00:27:37,690 --> 00:27:38,987 area has created 730 00:27:40,159 --> 00:27:41,137 10000000000000 731 00:27:41,195 --> 00:27:41,695 dollars 732 00:27:42,470 --> 00:27:45,895 worth of enterprise value from Vc backed startup. 733 00:27:46,230 --> 00:27:47,609 Which is 34 734 00:27:47,670 --> 00:27:49,190 percent of the global total, 735 00:27:49,590 --> 00:27:51,190 which is why I say it's Mac and 736 00:27:51,269 --> 00:27:53,670 Mode medina. It hasn't always turned out that 737 00:27:53,670 --> 00:27:54,549 work for people. 738 00:27:55,843 --> 00:27:59,132 And, you know, this is where talked before 739 00:27:59,190 --> 00:28:01,442 we went live about sort of 740 00:28:01,898 --> 00:28:02,398 cultural 741 00:28:03,427 --> 00:28:05,756 divisions. It's not always clear to me 742 00:28:06,290 --> 00:28:08,938 you know, that the Us model 743 00:28:10,124 --> 00:28:11,261 while having created 744 00:28:11,638 --> 00:28:13,413 enormous economic value, 745 00:28:14,188 --> 00:28:14,688 incredible 746 00:28:15,463 --> 00:28:15,963 growth 747 00:28:16,420 --> 00:28:16,920 historically, 748 00:28:17,869 --> 00:28:20,022 you know, is aiming at a level of 749 00:28:20,022 --> 00:28:20,522 equitable 750 00:28:21,138 --> 00:28:21,638 distribution 751 00:28:22,255 --> 00:28:24,408 that is creating AAA 752 00:28:24,408 --> 00:28:26,263 political and cultural environments 753 00:28:27,134 --> 00:28:29,361 you know, where people are looking at the 754 00:28:29,361 --> 00:28:31,826 next 10 years and saying, I feel really 755 00:28:31,826 --> 00:28:34,927 good about what I'm gonna get in November. 756 00:28:35,578 --> 00:28:38,120 To answer your question. Yes. Yeah. What does 757 00:28:38,120 --> 00:28:40,583 that actually mean as it relates to our 758 00:28:40,583 --> 00:28:42,116 investments? Well, obviously, 759 00:28:42,664 --> 00:28:45,700 the bet, if you like rational bet is, 760 00:28:46,579 --> 00:28:47,399 if you 761 00:28:47,938 --> 00:28:48,438 effectively 762 00:28:49,056 --> 00:28:51,462 have a business model, where you're taking money 763 00:28:51,462 --> 00:28:53,710 out of your business to put into 764 00:28:54,084 --> 00:28:55,935 a deprived local neighborhood. 765 00:28:58,073 --> 00:29:00,864 You will attract a certain type of team 766 00:29:00,864 --> 00:29:04,053 member, which is very values aligned. You will 767 00:29:04,053 --> 00:29:06,148 attract a certain type of founder 768 00:29:06,939 --> 00:29:10,207 whose very values aligned and impact driven, and 769 00:29:10,286 --> 00:29:12,460 I've never met a great founder that isn't 770 00:29:12,518 --> 00:29:14,590 mission driven. And then you will also a 771 00:29:14,590 --> 00:29:17,010 hope fully attract and work with 772 00:29:17,622 --> 00:29:20,478 Lps who share your values who are long 773 00:29:20,478 --> 00:29:21,613 term in their thinking, 774 00:29:22,239 --> 00:29:24,872 And so, you know, again, it's not just 775 00:29:24,872 --> 00:29:26,946 the right thing to do it's in my 776 00:29:26,946 --> 00:29:29,753 view, the rational thing to do because our 777 00:29:29,753 --> 00:29:32,625 team, the founders that we back, and the 778 00:29:32,625 --> 00:29:35,916 people who trust us to invest their capital 779 00:29:36,214 --> 00:29:39,165 to get a great return, that's our flywheel. 780 00:29:39,979 --> 00:29:41,497 The better our returns, 781 00:29:41,977 --> 00:29:43,735 the more money we get to put into 782 00:29:43,735 --> 00:29:44,374 the neighborhood. 783 00:29:45,972 --> 00:29:48,130 An analogy that I... I'm intrigued with, and 784 00:29:48,210 --> 00:29:49,901 I wonder if if if this makes some 785 00:29:49,901 --> 00:29:51,098 sense to you. If you look at the 786 00:29:51,098 --> 00:29:53,492 greatest rock artists from the Uk versus the 787 00:29:53,732 --> 00:29:56,660 Us. The Uk has the beatles, the the 788 00:29:56,779 --> 00:29:59,412 you know, that Z rolling Stones, the kinks, 789 00:29:59,731 --> 00:30:02,125 etcetera. On our side, it's all individuals. Right? 790 00:30:02,284 --> 00:30:03,880 It's Bruce springs. It's Bob Dillon. 791 00:30:04,454 --> 00:30:06,372 And in in many ways that's sort of, 792 00:30:06,452 --> 00:30:08,689 like, emblem, it has said, you know, I'm 793 00:30:08,689 --> 00:30:11,007 not the first to develop this analysis of 794 00:30:11,007 --> 00:30:12,685 the individual of the Us. 795 00:30:13,258 --> 00:30:16,200 Versus the sort of team activity if you 796 00:30:16,200 --> 00:30:18,267 will, of the Uk, for instance, we'll use 797 00:30:18,267 --> 00:30:19,936 the Uk rather than all of Europe as 798 00:30:19,936 --> 00:30:21,923 it's where you are seated currently and and 799 00:30:21,923 --> 00:30:24,401 we're the predominant part of our conversation has 800 00:30:24,401 --> 00:30:24,877 been focused. 801 00:30:25,592 --> 00:30:27,418 And And know, I wonder to what extent 802 00:30:27,418 --> 00:30:29,324 that then extends as you're kind of describing. 803 00:30:29,483 --> 00:30:31,150 So for forgive, I'm piggyback me on your 804 00:30:31,150 --> 00:30:31,468 on your, 805 00:30:32,198 --> 00:30:34,183 idea here as opposed to formulating a new 806 00:30:34,183 --> 00:30:37,042 1 for our conversation of the nature in 807 00:30:37,042 --> 00:30:38,472 which work is done? I don't know. I... 808 00:30:38,710 --> 00:30:39,981 What do you think of that analogy and 809 00:30:39,981 --> 00:30:41,545 its application and and, 810 00:30:42,061 --> 00:30:43,966 yeah, how you're investing and what you're seeing 811 00:30:44,205 --> 00:30:45,158 in the progress you're making. 812 00:30:46,507 --> 00:30:48,731 I mean, and all honesty, I hadn't really 813 00:30:48,731 --> 00:30:50,637 thought about it, but I think it's really 814 00:30:50,637 --> 00:30:53,280 interesting thing thing to think about, you know, 815 00:30:53,599 --> 00:30:54,656 I I'm sure 816 00:30:55,272 --> 00:30:57,365 there's some healthy counts or examples 817 00:30:58,394 --> 00:30:59,273 in the Us, 818 00:30:59,833 --> 00:31:00,312 you know, 819 00:31:01,111 --> 00:31:02,330 immediately, the doors 820 00:31:02,710 --> 00:31:04,627 sprang to mine, but then you're gonna blake 821 00:31:04,707 --> 00:31:08,075 Jim Morrison back at me, I think, you 822 00:31:08,075 --> 00:31:11,255 know, we've got a lot to learn, and 823 00:31:11,255 --> 00:31:13,641 we still have a lot to learn from 824 00:31:13,641 --> 00:31:16,606 the Us. I think, you know, while 825 00:31:17,792 --> 00:31:19,965 you know, there is this sort of narrative 826 00:31:20,023 --> 00:31:21,399 of individual ism 827 00:31:22,254 --> 00:31:24,539 in the Us. You know, there are all 828 00:31:24,738 --> 00:31:29,610 so this understanding and recognition that neighborhoods communities, 829 00:31:30,858 --> 00:31:31,358 organizations, 830 00:31:32,465 --> 00:31:35,424 great companies get built by teams, not just 831 00:31:35,424 --> 00:31:35,924 by 832 00:31:36,625 --> 00:31:38,245 individuals. Now, the narrative 833 00:31:38,625 --> 00:31:41,000 may focus on the individual, but I thought 834 00:31:41,199 --> 00:31:43,190 know, there was this incredible moments in the 835 00:31:43,190 --> 00:31:45,500 last couple of years when Alan elon Musk 836 00:31:45,500 --> 00:31:46,934 was to the extent that he ever a 837 00:31:46,934 --> 00:31:47,752 feels pressure, 838 00:31:48,527 --> 00:31:49,584 you know, being 839 00:31:50,294 --> 00:31:50,953 sort of 840 00:31:51,487 --> 00:31:53,872 challenge at how, you know, how can you 841 00:31:53,872 --> 00:31:56,837 run Tesla and how can you run Spacex 842 00:31:57,133 --> 00:31:59,223 and how can you run the boring company 843 00:31:59,439 --> 00:32:01,605 and you just or Twitter and you do 844 00:32:01,605 --> 00:32:02,663 all of this stuff 845 00:32:03,519 --> 00:32:06,013 and then, you know, I love 846 00:32:06,391 --> 00:32:09,581 watching the the Tesla earnings calls. 847 00:32:10,473 --> 00:32:12,945 And, you know, there was this cooler that 848 00:32:12,945 --> 00:32:16,155 he did and as as an English graduate 849 00:32:16,373 --> 00:32:18,707 and as someone who wrote plays and 850 00:32:19,019 --> 00:32:19,995 and did drama, 851 00:32:20,527 --> 00:32:23,012 you know, in my in my teens in 852 00:32:23,068 --> 00:32:25,235 university is, I kind of appreciates 853 00:32:25,688 --> 00:32:27,378 the drama and the scripting. 854 00:32:28,325 --> 00:32:30,565 And, you know, he basically, he opened the 855 00:32:30,565 --> 00:32:31,445 earnings call. 856 00:32:32,005 --> 00:32:34,805 And then for the 80 99 857 00:32:34,805 --> 00:32:36,644 percent of the call, you know, just had 858 00:32:36,644 --> 00:32:37,545 this sort of 859 00:32:37,937 --> 00:32:38,437 lineup 860 00:32:38,890 --> 00:32:39,390 of 861 00:32:39,843 --> 00:32:40,343 total 862 00:32:40,954 --> 00:32:42,010 rockstar stars 863 00:32:42,781 --> 00:32:45,186 talking about, oh, software 864 00:32:45,957 --> 00:32:46,457 or 865 00:32:47,163 --> 00:32:48,300 factory charging 866 00:32:48,993 --> 00:32:50,606 or hardware developments 867 00:32:51,697 --> 00:32:52,197 or 868 00:32:53,129 --> 00:32:53,629 insurance 869 00:32:54,099 --> 00:32:56,813 or the financials and all of them to 870 00:32:56,813 --> 00:32:58,170 a person was, like, 871 00:32:59,128 --> 00:32:59,628 absolutely 872 00:33:00,245 --> 00:33:03,214 clearly world class of what they did. And 873 00:33:03,214 --> 00:33:05,372 all of them said, oh, you know, for 874 00:33:05,372 --> 00:33:07,609 the 5 or 10 years that I've been 875 00:33:07,609 --> 00:33:08,329 at Tesla. 876 00:33:08,728 --> 00:33:10,966 It's like he just sort of pulled away 877 00:33:10,966 --> 00:33:11,706 the curtain. 878 00:33:12,419 --> 00:33:14,482 And said you might think this is all 879 00:33:14,482 --> 00:33:15,990 about me, but actually, 880 00:33:16,625 --> 00:33:19,165 you know, there's just like this pillar team 881 00:33:19,165 --> 00:33:19,403 here. 882 00:33:19,974 --> 00:33:21,888 And the bit that he took for himself 883 00:33:21,888 --> 00:33:22,527 in the middle, 884 00:33:23,164 --> 00:33:25,159 which I thought was, like, kind of amazing 885 00:33:25,159 --> 00:33:27,711 as well is when he talks about opt... 886 00:33:27,950 --> 00:33:30,678 Is it optimus the robots. That they're building 887 00:33:30,678 --> 00:33:32,137 that. And he effectively, 888 00:33:32,596 --> 00:33:35,153 not in a polished Steve jobs type way, 889 00:33:35,392 --> 00:33:37,410 but sort of just took the lid off 890 00:33:37,724 --> 00:33:39,098 you know, this humanoid 891 00:33:39,632 --> 00:33:42,972 robots, you know, that was picking up tissue 892 00:33:42,972 --> 00:33:44,642 and holding it in their hand and the 893 00:33:44,642 --> 00:33:47,187 sort of the fine tactile movements and talking 894 00:33:47,187 --> 00:33:49,115 about the back, you know, like, a car 895 00:33:49,115 --> 00:33:51,507 is just a robot on wheels, and you 896 00:33:51,507 --> 00:33:51,826 just like, 897 00:33:52,624 --> 00:33:52,863 okay. 898 00:33:53,740 --> 00:33:57,032 Nothing gets to that scale unless you have 899 00:33:57,743 --> 00:33:58,243 exceptional 900 00:33:58,779 --> 00:34:00,135 individuals, not just him, 901 00:34:00,772 --> 00:34:03,961 but amazing teams. And to be clear, at 902 00:34:03,961 --> 00:34:05,657 least when it comes to 903 00:34:06,048 --> 00:34:06,548 growing 904 00:34:06,924 --> 00:34:07,424 companies 905 00:34:08,038 --> 00:34:10,447 as you pointed out that are sort of 906 00:34:10,505 --> 00:34:12,653 some of the top companies in the world, 907 00:34:13,464 --> 00:34:14,603 you know, we're still 908 00:34:15,141 --> 00:34:16,040 many decades, 909 00:34:16,498 --> 00:34:18,594 I think behind where the Us 910 00:34:19,052 --> 00:34:21,846 is today. Although I think, as I said, 911 00:34:22,086 --> 00:34:24,116 you know, with matching up fast, 912 00:34:24,971 --> 00:34:26,825 and we're quite fast learners, 913 00:34:27,520 --> 00:34:29,534 and we've got some smart people 914 00:34:30,484 --> 00:34:30,984 in 915 00:34:31,363 --> 00:34:33,222 Europe and in new Palo alto. 916 00:34:34,240 --> 00:34:36,078 So thank you again for those reflections. I 917 00:34:36,158 --> 00:34:36,478 I wanna, 918 00:34:37,197 --> 00:34:39,489 another aspect that I've read about your last 919 00:34:39,609 --> 00:34:41,362 fee is the necessity to demi dismiss a 920 00:34:41,362 --> 00:34:44,070 by venture. You've talked about how venture capital 921 00:34:44,070 --> 00:34:46,323 has to be more accessible or more diverse 922 00:34:46,714 --> 00:34:49,578 and more transparent to drive lasting value creation. 923 00:34:50,612 --> 00:34:52,363 Can you talk a bit about your perspectives 924 00:34:52,363 --> 00:34:54,511 there and progress made so far? 925 00:34:55,959 --> 00:34:58,273 Yeah. Look, I think it goes back to 926 00:34:58,273 --> 00:34:58,773 your 927 00:34:59,231 --> 00:35:00,130 point about 928 00:35:00,588 --> 00:35:02,503 what are the biggest companies in the world 929 00:35:02,503 --> 00:35:03,061 right now. 930 00:35:04,113 --> 00:35:06,976 And, you know, because they're so big. We 931 00:35:06,976 --> 00:35:08,987 forget that these are venture backed businesses 932 00:35:09,521 --> 00:35:11,987 that, you know, an angel wrote a seed 933 00:35:11,987 --> 00:35:15,740 check, a Vc Wrote, series a check. And, 934 00:35:15,819 --> 00:35:18,205 you know, when these companies are doing tens 935 00:35:18,205 --> 00:35:21,324 of billions of dollars in revenue a quarter 936 00:35:21,324 --> 00:35:23,244 and those are the smaller ones. You know, 937 00:35:23,324 --> 00:35:25,324 we just don't think of them as startups, 938 00:35:25,484 --> 00:35:28,204 but all of these companies were venture backed. 939 00:35:29,179 --> 00:35:29,679 And, 940 00:35:30,138 --> 00:35:31,596 you know, what we've don't recognize 941 00:35:32,534 --> 00:35:35,410 because it's very hard for us to zoom 942 00:35:35,410 --> 00:35:38,210 out people don't typically do that and everything 943 00:35:38,210 --> 00:35:40,356 in our world is having us to zoom 944 00:35:40,356 --> 00:35:43,137 in is to sort of, you know, focus 945 00:35:43,137 --> 00:35:44,187 on the stream, 946 00:35:44,586 --> 00:35:46,759 you know, our attention is constantly 947 00:35:47,455 --> 00:35:51,222 being competed for and bombarded again. So 948 00:35:51,613 --> 00:35:53,515 We don't zoom out. But when you zoom 949 00:35:53,515 --> 00:35:55,838 out, 7 of these 10 companies 950 00:35:56,527 --> 00:35:57,319 are startups, 951 00:35:57,795 --> 00:35:58,295 really? 952 00:35:59,079 --> 00:36:02,030 That, you know, got to extraordinary scale and 953 00:36:02,030 --> 00:36:02,849 got there 954 00:36:03,226 --> 00:36:06,757 because Capital at some point in in time 955 00:36:07,374 --> 00:36:08,251 said, you know, 956 00:36:08,984 --> 00:36:09,964 these are founders 957 00:36:10,742 --> 00:36:12,441 worth backing. And 958 00:36:12,980 --> 00:36:14,519 I think it's pretty scary 959 00:36:14,898 --> 00:36:17,476 when just with those 7 companies 960 00:36:18,430 --> 00:36:20,610 you've got 17000000000000 961 00:36:20,750 --> 00:36:21,250 dollars 962 00:36:21,630 --> 00:36:25,070 of enterprise value, and people don't know how 963 00:36:25,070 --> 00:36:27,469 venture capital works. I think that's really scary. 964 00:36:27,724 --> 00:36:30,054 It it it's sort of a big failure 965 00:36:30,270 --> 00:36:31,168 at a social 966 00:36:31,782 --> 00:36:33,476 and an economic level 967 00:36:34,249 --> 00:36:34,749 that 968 00:36:35,219 --> 00:36:37,054 you know, the the the way that these 969 00:36:37,054 --> 00:36:39,628 companies get finance and built 970 00:36:40,244 --> 00:36:41,063 is basically 971 00:36:41,760 --> 00:36:43,775 still a kind of a cottage 972 00:36:44,232 --> 00:36:44,732 industry 973 00:36:45,362 --> 00:36:47,981 that people talk about in medieval terms, like, 974 00:36:48,140 --> 00:36:49,036 it's Artisan. 975 00:36:49,568 --> 00:36:51,417 It's, you know, an 976 00:36:51,949 --> 00:36:53,139 apprenticeship business, like, 977 00:36:53,949 --> 00:36:57,292 basically, that's a way of excluding people in 978 00:36:57,292 --> 00:36:58,008 my minds, 979 00:36:58,804 --> 00:37:01,112 and it's done a great job of excluding 980 00:37:01,112 --> 00:37:01,510 people. 981 00:37:02,084 --> 00:37:04,182 Venture because this try to sort of aggregates, 982 00:37:04,881 --> 00:37:06,181 you know, the returns 983 00:37:06,880 --> 00:37:08,797 and the insights and the knowledge, 984 00:37:09,197 --> 00:37:10,955 you know, in the same way, 985 00:37:11,529 --> 00:37:14,161 that before the reformation, sorry I'm being a 986 00:37:14,161 --> 00:37:15,937 historian again, Latin 987 00:37:16,953 --> 00:37:17,851 and Greek 988 00:37:18,309 --> 00:37:21,121 did before, you know, we had publishing 989 00:37:21,834 --> 00:37:23,371 before we had Martin in Luther. 990 00:37:24,229 --> 00:37:25,107 So, you know, 991 00:37:25,826 --> 00:37:26,724 most of 992 00:37:27,342 --> 00:37:30,296 the way we think about venture capital, which 993 00:37:30,296 --> 00:37:33,500 has produced these 5 or saying 7 largest 994 00:37:33,500 --> 00:37:35,355 companies in the world is still 995 00:37:35,731 --> 00:37:38,121 medieval or at best the renaissance. 996 00:37:38,694 --> 00:37:40,449 And here we are in the 20 first 997 00:37:40,449 --> 00:37:42,065 century, dealing with Ai 998 00:37:42,761 --> 00:37:43,261 and 999 00:37:43,718 --> 00:37:44,218 genomics 1000 00:37:44,994 --> 00:37:46,929 and distributed ledger technology, 1001 00:37:47,958 --> 00:37:48,776 and quantum, 1002 00:37:49,307 --> 00:37:51,631 you know, let alone, cloud mobile, 1003 00:37:52,480 --> 00:37:54,408 on the Internet and semiconductors. 1004 00:37:55,177 --> 00:37:55,677 So 1005 00:37:56,224 --> 00:37:58,537 I think, you know, it's time that we 1006 00:37:58,537 --> 00:37:59,994 sought not even in 1007 00:38:00,690 --> 00:38:01,010 people, 1008 00:38:01,568 --> 00:38:04,620 just like not even bothering to believe that 1009 00:38:04,758 --> 00:38:07,167 anyone other than the high reese should have 1010 00:38:07,167 --> 00:38:08,444 knowledge or be educated. 1011 00:38:09,722 --> 00:38:11,717 Very interesting. I was also 1 of my 1012 00:38:11,717 --> 00:38:13,234 majors as the university was history, So I 1013 00:38:13,234 --> 00:38:15,230 love all these analog. I appreciate you sharing 1014 00:38:15,230 --> 00:38:16,919 those. I wanted to ask you that somebody 1015 00:38:16,919 --> 00:38:19,070 who has spent considerable time and and made 1016 00:38:19,070 --> 00:38:19,969 considerable investments 1017 00:38:20,425 --> 00:38:21,063 in Israel. 1018 00:38:21,700 --> 00:38:22,815 If you could talk a little bit about 1019 00:38:22,815 --> 00:38:24,807 what you see as the the the secret 1020 00:38:24,807 --> 00:38:27,297 sauce of that economy, which, again, is a 1021 00:38:27,297 --> 00:38:29,135 very small country even grand scheme of things, 1022 00:38:29,295 --> 00:38:33,151 and yet has produced remarkable value, talent now 1023 00:38:33,290 --> 00:38:33,744 tremendous, 1024 00:38:34,264 --> 00:38:35,780 talk a bit about your perspectives on on 1025 00:38:35,780 --> 00:38:37,216 that economy if you would, and what excites 1026 00:38:37,216 --> 00:38:38,733 you about about it enough to put your 1027 00:38:38,733 --> 00:38:39,052 money there? 1028 00:38:40,009 --> 00:38:41,366 Sure. I mean, and then, again, 1029 00:38:42,178 --> 00:38:44,109 we we put our bodies and 1030 00:38:44,642 --> 00:38:47,265 apparently there from 20 10 to 20 12. 1031 00:38:47,424 --> 00:38:49,253 And I think, you know, it was an 1032 00:38:49,253 --> 00:38:50,843 incredible experience. I mean, 1033 00:38:51,652 --> 00:38:53,955 and for our family, our, we have 3 1034 00:38:53,955 --> 00:38:56,338 kids, but our old... We didn't out we 1035 00:38:56,338 --> 00:38:57,846 didn't have our third at the time. So 1036 00:38:57,846 --> 00:38:59,140 the older 2 work 1037 00:38:59,529 --> 00:39:01,941 know, very young and and and at primary 1038 00:39:01,999 --> 00:39:03,433 school. So, you know, we felt it was 1039 00:39:03,433 --> 00:39:06,222 a good opportunity to spend 18, 24 months. 1040 00:39:06,873 --> 00:39:09,097 Somewhere else, my wife had family out there. 1041 00:39:09,255 --> 00:39:10,923 And to be honest, I was a pretty 1042 00:39:10,923 --> 00:39:11,741 big skeptic 1043 00:39:12,353 --> 00:39:14,655 about israel going there. And then though, you 1044 00:39:14,655 --> 00:39:17,156 know, I'm Jewish. I didn't really 1045 00:39:17,848 --> 00:39:20,390 have a very nuanced view of israel. I 1046 00:39:20,390 --> 00:39:22,082 had a very much a 1047 00:39:22,774 --> 00:39:23,989 a media driven 1048 00:39:25,094 --> 00:39:27,411 view of Israel. And what I saw on 1049 00:39:27,411 --> 00:39:29,249 the ground as you said, it's like, there's 1050 00:39:29,249 --> 00:39:30,548 just extraordinary 1051 00:39:31,246 --> 00:39:34,453 place where the strike needs of the society, 1052 00:39:34,612 --> 00:39:36,844 and, I mean, I'm not gonna talk about 1053 00:39:36,844 --> 00:39:38,380 it because there are 2 1054 00:39:38,756 --> 00:39:41,719 the best person on this I'm sure you're 1055 00:39:41,719 --> 00:39:43,073 and and some of your are listeners have 1056 00:39:43,152 --> 00:39:43,391 Reds. 1057 00:39:44,028 --> 00:39:46,338 Some of his work is Saul sin, who 1058 00:39:46,338 --> 00:39:48,749 wrote startup up nation and then more recently 1059 00:39:49,380 --> 00:39:51,699 which I think is a brilliant follow up 1060 00:39:51,699 --> 00:39:53,619 wrote book called the genius of Israel, which 1061 00:39:53,619 --> 00:39:54,440 is about, 1062 00:39:54,819 --> 00:39:57,139 you know, beyond tech the sort of the 1063 00:39:57,139 --> 00:39:57,639 resilience 1064 00:39:58,434 --> 00:39:59,151 of the 1065 00:39:59,549 --> 00:40:00,766 Israeli society, 1066 00:40:01,143 --> 00:40:02,338 not just the economy. 1067 00:40:03,533 --> 00:40:05,525 And there are sort of factors in Israel 1068 00:40:05,525 --> 00:40:07,889 that may be unique to Israel, but action 1069 00:40:08,168 --> 00:40:10,003 you know, in the reading of his latest 1070 00:40:10,003 --> 00:40:12,157 book, I think are lessons for the world, 1071 00:40:12,316 --> 00:40:15,028 You know, the social structures, I mean, the 1072 00:40:15,028 --> 00:40:17,442 teamwork, you know, to go back to your 1073 00:40:18,154 --> 00:40:18,654 solo 1074 00:40:19,113 --> 00:40:20,071 versus bands, 1075 00:40:20,551 --> 00:40:21,051 analogy, 1076 00:40:21,429 --> 00:40:23,208 people work as teams 1077 00:40:23,666 --> 00:40:24,326 in israel. 1078 00:40:25,039 --> 00:40:28,392 In a just an extraordinary way across society, 1079 00:40:28,552 --> 00:40:30,387 you see that again and again, 1080 00:40:30,946 --> 00:40:33,261 often for reasons of resilience. 1081 00:40:34,233 --> 00:40:36,699 But, you know, David k ben, who was 1082 00:40:36,699 --> 00:40:38,449 1 of the founders of of the state 1083 00:40:38,449 --> 00:40:40,381 of Israel when he 1084 00:40:41,489 --> 00:40:43,268 retired from being the prime minister, 1085 00:40:43,966 --> 00:40:45,724 he went south to the deserts. 1086 00:40:46,683 --> 00:40:47,183 And 1087 00:40:47,962 --> 00:40:49,980 I think, you know, the story goes and 1088 00:40:50,213 --> 00:40:52,203 someone will be able to correct me as, 1089 00:40:52,282 --> 00:40:54,056 you know, he was walking through 1090 00:40:54,829 --> 00:40:56,898 a place in the Na. And he saw 1091 00:40:56,898 --> 00:40:58,888 some young when he some things. 1092 00:40:59,779 --> 00:41:01,850 Looking to sort of set up a community. 1093 00:41:02,089 --> 00:41:04,400 And he found it very inspiring that, you 1094 00:41:04,400 --> 00:41:06,471 know, in the midst of the place where 1095 00:41:06,471 --> 00:41:07,449 nothing grows 1096 00:41:07,985 --> 00:41:08,702 a desert. 1097 00:41:09,354 --> 00:41:10,727 In a here of people 1098 00:41:11,260 --> 00:41:14,119 looking to set up a community. So there's 1099 00:41:14,119 --> 00:41:15,096 up pioneering 1100 00:41:16,343 --> 00:41:16,843 spirits. 1101 00:41:17,629 --> 00:41:20,091 You know, that's like crossing the Mason Dixon 1102 00:41:20,091 --> 00:41:22,338 line that you have in Israel. 1103 00:41:23,109 --> 00:41:24,244 There is a sense 1104 00:41:24,618 --> 00:41:25,594 you know, which 1105 00:41:25,983 --> 00:41:29,085 great innovation needs as well is that everyone 1106 00:41:29,085 --> 00:41:29,960 is against us. 1107 00:41:30,677 --> 00:41:32,767 And then you have the social structure 1108 00:41:33,157 --> 00:41:35,306 whether it's sort of the Id or even 1109 00:41:35,306 --> 00:41:37,874 just gonna your family for Friday night dinner 1110 00:41:38,409 --> 00:41:41,193 that creates all of these social cues that 1111 00:41:41,193 --> 00:41:43,119 are about collective action. 1112 00:41:43,994 --> 00:41:46,064 And so, yeah. I mean, you know, on 1113 00:41:46,064 --> 00:41:49,169 a dollar for dollar basis, Israel is the 1114 00:41:49,169 --> 00:41:50,099 most productive 1115 00:41:50,538 --> 00:41:52,850 innovation economy in the world hands down. 1116 00:41:53,807 --> 00:41:55,880 And it's why, you know, when we look 1117 00:41:55,880 --> 00:41:58,214 at where do we focus our investing, 1118 00:41:59,324 --> 00:42:00,681 There's not a lot we can add to 1119 00:42:00,681 --> 00:42:02,596 the Bay area. There's not that much we 1120 00:42:02,596 --> 00:42:04,911 can add to new York, but the only 1121 00:42:04,911 --> 00:42:06,986 other 2 or 3 cities in the world 1122 00:42:06,986 --> 00:42:09,474 that have produce more than a hundred unicorns 1123 00:42:09,474 --> 00:42:10,752 of London and Tel aviv. 1124 00:42:11,630 --> 00:42:15,061 So we're very active still in in Tel 1125 00:42:15,061 --> 00:42:17,309 aviv and it's real. And, you know, I 1126 00:42:17,309 --> 00:42:20,042 would just recommend for those that haven't read 1127 00:42:20,100 --> 00:42:23,210 both start nation, which is, you know, probably 1128 00:42:23,210 --> 00:42:25,778 12 years old now and and it tells 1129 00:42:25,778 --> 00:42:27,317 the story of 1130 00:42:27,697 --> 00:42:31,293 tech in Israel and how tech became 40 1131 00:42:31,293 --> 00:42:32,192 percent of Gdp. 1132 00:42:32,651 --> 00:42:34,030 But actually, I find 1133 00:42:34,344 --> 00:42:37,141 saul latest book, the genius of Israel, even 1134 00:42:37,141 --> 00:42:39,619 more interesting because it talks about, you know, 1135 00:42:39,858 --> 00:42:42,815 how at a societal level, you know, Israel 1136 00:42:42,815 --> 00:42:45,005 is and of got this remarkable 1137 00:42:45,701 --> 00:42:46,201 resilience 1138 00:42:46,976 --> 00:42:47,476 despite 1139 00:42:48,172 --> 00:42:50,085 everything that's going on there. 1140 00:42:51,853 --> 00:42:52,751 The best setting 1141 00:42:53,126 --> 00:42:55,197 perspective certainly solved. Thank you so much for 1142 00:42:55,197 --> 00:42:57,505 sharing those. And thank you more generally for 1143 00:42:57,505 --> 00:42:59,120 a really thought provoking 1144 00:42:59,496 --> 00:43:02,863 conversation covering numerous areas that are emblem of 1145 00:43:02,863 --> 00:43:04,539 your your your broad, 1146 00:43:05,258 --> 00:43:07,913 broad mind and perspectives and curiosity, 1147 00:43:08,451 --> 00:43:10,218 really pre sheet you taking a little time 1148 00:43:10,218 --> 00:43:10,854 for me today. 1149 00:43:11,889 --> 00:43:13,559 Brilliant, and well, thanks so much for the 1150 00:43:13,559 --> 00:43:15,889 time and, you know, look forward to 1151 00:43:16,264 --> 00:43:18,349 hopefully seeing you in person when you hunt 1152 00:43:18,349 --> 00:43:18,987 through London. 1153 00:43:19,865 --> 00:43:20,344 And 1154 00:43:21,063 --> 00:43:21,302 yeah, 1155 00:43:22,180 --> 00:43:24,415 looking forward to any thoughts or comments, 1156 00:43:25,054 --> 00:43:26,983 your list have on some of it things 1157 00:43:26,983 --> 00:43:29,527 that I've got wrong in our conversation.