>> WELCOME BACK TO SHAKE OR
EVERYONE WILL ANOTHER SETBACK
FOR SOME.
>> THANK THE COMPANY THAT
SOFTBANK
BACKING MS. CAR SUBSCRIPTION
STARTUP CALLED FARE IS LAYING
OFF 40% OF ITS STAFF INCLUDING
IN CFL AND FOR MORE ON THIS
WE'RE JOINED NOW
BY JOHN MEYER IS MANAGING
DIRECTOR AND STAR SHIP CAPITAL
JOHN IT'S GOOD TO SEE YOU LOOK
ON THE HEELS OF WE WORKS
THEY'LL IPO WILL NOW GET THIS
NEWS IN REGARDS TO FAIR HAS
SOFTENED LAST STEP.
>> I DEFINITELY THINK SOFTBANK
HAS THEIR STUFF FOR SURE IT'S A
GREAT QUESTION AND WHAT'S SO
INTERESTING ABOUT THIS
SITUATION THAT
SAW PRODUCTION IS THAT IT WAS
JUST A YEAR OR 2 AGO THAT THEY
WERE THE TALK OF THE TOWN WHICH
IN SAUK VALLEY AS THAT MOVERS
AND SHAKERS IN THE VENTURE
CAPITAL KING. AND YOU KNOW I'VE
HAD CONVERSATIONS WITH PARTNERS
AND SOFTBANK AND AND
OBVIOUSLY WITH PARTNERS THAT
YOU KNOW DOZENS OF OTHER
SILICON VALLEY FIRMS
AND I CAN TELL YOU CONFIDENTLY
THAT SOFTBANK HAS GONE AGAIN
THIS THIS ALMOST KNIGHT IN
SHINING ARMOR, TYPE YOU KNOW
FOR HER TO TO THIS VENTURE
CAPITAL FIRM YEARS NOW A TEEN
AS AS A AS A BEAR WORRISOME
FORCE IN INSULT VALLEY,
ESPECIALLY BECAUSE THE AFTER
EFFECTS OF SOME OF THE IN MY
OPINION
BAD INVESTMENTS ARE NOT GOING
TO JUST IMPACTS ALL CHARACTER
THERE'S DEFINITELY IMPACTING
THE ENTIRE VENTURE
CAPITAL MARKET AS WAS THE START
OF WORLD WHICH YOU KNOW WE'RE
NOW BEGINNING TO SEE THE
REPERCUSSIONS OUT WITH WITH
COMPANIES
LIKE STAIR I'M NOW TAKING THEIR
STRATEGY AND CHANGING AROUND
AND WHERE THEY'RE BEGINNING TO
FOCUS LAST ON THIS
MENTALITY OF GROWING AT ALL
COSTS AND AND INSTEAD TRYING TO
FIND A WAY TO HIT
PROBABILITY SOONER.
>> IS THE SILVER LINING TO THIS
THAT WILL HAVE MORE VENTURE
CAPITAL IS DOING EVEN MORE DUE
DILIGENCE AROUND THE COMPANIES,
THEY'RE LOOKING TO INVEST IN
AND PERHAPS EVEN LESS INFLATED
VALUATIONS.
>> DEFOUR AND YOU
KNOW THIS IS SOMETHING THAT
I'VE BEEN PUSHING FOR A WHILE
NOW AND I DO THINK THE
DESPERATELY NEEDS MORE DUE
DILIGENCE IN THE STATES BECAUSE
IT'S BEEN IT WAS MORE OF A
CONCERTED
APPROACH TO DILIGENCE IN THE WE
WORK DEAL I DON'T THINK WE
WOULD BE IN THIS POSITION TO
AND I THINK THE SAME GOES FOR
HE THEN YOU TRUE LEADER STAGE
COMPANIES. THAT OF IPO THIS
YEAR SUCH AS UBER AND LYFT TO
WEAR. EVEN TO AN AMATEUR
INVESTOR READING THE PROSPECTUS
AND THESE I P ROSE
OF HAPPENED. IT'S IT'S ALMOST
IMPOSSIBLE TO GATHER A SENSE OF
WHAT A TRUE ROAD TO
PROFITABILITY LOOKS LIKE AND SO
I THINK AT THIS POINT IF A
STARTUP CAN CAN DEMONSTRATE A
THEIR ROAD TO PROFITABILITY OF
THE OR
PROFITABLE THAT IS GOING TO BE
GOOD ENOUGH FOR THEM TO KEEP
GROWING WEATHER. IF YOU CAN'T
DEMONSTRATE HOW YOU'RE GOING TO
GET THERE AND THE PROBABILITY
AT SOME POINT SUCH AS IN THE
CASES OF MOVER I THINK YOU'RE
YOU'RE IN A WORLD OF OF OF
TOTAL HURT AS A AS A CASE
EXPLAINED IT.
>> THEIR MOTTO, RIGHT IS
SOFT PINK PLAYING HERE OR WAS
THE COMPANY POORLY MANAGED OR A
COMBINATION OF BOTH JOHN.
>> I THINK IT'S A COMBINATION
OF BULLS, HOWEVER I WOULD PUT
MORE OF THE BLAME ON SOFTBANK'S
SIDE BECAUSE WHAT ONE OF THE
THINGS THAT HAS HAPPENED AND
THE LAST NUMBER OF TO THE LAST
10 YEARS.
IN THE STARTUP WORLD IS THAT
FOUNDERS HAVE TRADITIONALLY
BEEN ACTUALLY QUITE PRESSURED
BY THEIR OR THEIR VENTURE
CAPITAL INVESTORS TO TAKE ON
MORE AND MORE VENTURE CAPITAL
MONEY AND THE REASON WHY
THE SEAS HAVE PRESSED SO THIS
IS BECAUSE OF YOUR EXISTING
INVESTORS SUCH
ASSAULT BANK IN A COMPANY
WORKFARE YOU'RE GOING TO WANT
TO DO EVERYTHING POSSIBLE TO TO
GET FAIR TO TO KEEP
SHOWING HIGH GROWTH NUMBER SO
THAT THE INVESTOR THAT COMES
AFTER YOU WILL BE AND A
HIGHER PRICE AND THAT YOU'RE
THE FIRST INVESTORS IN THERE
YOU CAN GO AND TELL YOUR HELP
HERE IS THAT YOU KNOW YOU'VE
HIT THIS. THIS YOU KNOW
IMPRESSIVE SUCCESS RATE OF
REVENUE GROWTH IN
THE COMPANY'S. THAT ARE IN YOUR
PORTFOLIO SO WITH FEAR WHAT'S
INTERESTING ABOUT THIS MODEL IS
THAT THEY'RE THEY'RE QUITE
DIFFERENT FROM A TRADITIONAL.
OPTION OF LEASING CARS, YOU
KNOW WHEN YOU RISA
YOUR SIDE A A A A MULTI YEAR
AGREEMENT AND ARE ALSO REQUIRED
TO GET A
CREDIT TRUCK. SO FARES DON'T
ACTUALLY A PRETTY GREAT JOB AT
A POINT IN ADDITION TO THE
STATES SO THAT YOU DON'T NEED A
CREDIT CHECK. YOUR YOU YOU'RE
NOT TIED TO A MULTI MULTI YOUR
AND IF ANYTHING YOU CAN GET A
CAR DRIVEN TO
YOUR DOORSTEP KEYS THE NEXT DAY
AND THEN IF YOU DON'T LIKE IT
RETURN IT FOR DIFFERENT WON YOU
KNOW MONTH OR 2 LATER,
SO IT HAS A LOT OF FLEXIBILITY
BUT THE DOWNSIDE IS THAT IT'S
THAT THE HIGH TO RUN A BUSINESS
AND THEN THE OTHER THING IS
YOU KNOW WE'RE WHAT WE'RE
SEEING THE REPERCUSSIONS OF
THEY ARE NOW GOING TO HAVE TO
DO SOME BACKTRACKING TO ALMOST
SLOWDOWN GROSS AND AND INSTEAD
PRIORITIZE GETTING GETTING TO
PROFITABILITY
QUICKER BECAUSE OF OF A CENTURY
THE MARKET IN THE STATES NOW
PREFER IT PROPER TO BELIEVE
THE PEOPLE WHO BROUGHT YOU LIFT
IPO AND NOW THIS FAILED WE WORK
OUT
>> SO LET'S TALK A LITTLE BIT
MORE ABOUT WE WORK WITH THE
TIME WE HAVE REMAINING HEAR
WHAT'S NEXT IN THAT WE WORK ON
ICE, THE BOTTLE.
>> WELL I YOU KNOW EVEN THOUGH
THERE
IS CONSIDERABLE RESOLUTION AIR
BASE TO WE WORKS A SORT-OF
PERCH CASH INFUSION I STILL
REMAIN EXTREMELY WORRIED FOR
THE IN BOTH THE SHORT AND LONG
TERM AND THE BIGGEST REASON WHY
IS IS DUE TO WHAT IS LIKELY
GOING TO BE A
THING IN DRAMATIC AND I MEAN
INCREDIBLY DRAMATIC DROP-OFF IN
EMPLOYEE AND
EXECUTIVE PROTECTION. AND
THAT'S BECAUSE THAT THE STOCK
OPTIONS THAT ALL THESE
EMPLOYEES
HOWARD NOW ALMOST WORTHLESS IN
MANY CASES AND AND MANY OF
THESE WE USE OUR ARE SOME
TRICKS YOU WANT TO STEP IT
INVESTED YEARS OF THEIR LIFE
INTO THIS COMPANY ON THE
PROMISE THAT THEY WOULD BE IPO
WING AT THIS IMPRESSIVE PRICE
AND THEIR STOCK OPTIONS IT
WOULD BE WORTH HUNDREDS OF
THOUSANDS OR MILLIONS OF
AND GIVEN THAT THEIR OPTIONS
ARE NOW WORTH
ALMOST NOTHING OR WORK I EXPECT
MANY OF THESE EMPLOYEES WHO
ABOUT IT THERE FOR YEARS TO
AND AND GOING OTHER COMPANIES
THAT THAT ARE GOING TO GIVE
THEM EQUITY DEAL SO DOWN THE
ROAD IS THERE CAN'T BE A BIGGER
ISSUE.
>> NOT FOR A COMPANY WORK WITH
K LET'S TALK ABOUT ADAM
NEUMANN.
I HE'S LEADING WE WORK WITH
BILLION A SIGNIFICANT PAYOUT
CONSIDERING THAT THOUSANDS OF
EMPLOYEES COULD BE SAID TO LOSE
THEIR JOBS AT THIS COMPANY DOES
HE HAVE THE EXIT OPPORTUNITIES.
I MEAN IS THERE IS THERE LIFE
FOR ADAM NEUMANN AT AFTER WE
WORK. YOU KNOW IT.
>> RIGHT I THINK THERE IS LIFE
FOR HIM AFTER WE WORK, HOWEVER
IT'S IT'S I I HIGHLY DOUBT
PEOPLE EVER IN THE NEAR TERM OR
MID TERM, RAISING SIGNIFICANT
VENTURE CAPITAL MONEY OR PUBLIC
MONEY FOR A COMPANY I THINK
WHAT IS LIKELY TO HAPPEN
WITHOUT HIM IS HE IS LIKELY
GOING TO GO DOWN
AROUND SIMILAR TO THAT OF
TRAVIS TOLD THERE ARE WE HAVE A
NUMBER WHO YOU KNOW MANY CANARD
US ANOTHER EXAMPLE OF
A DISGRACED. FOUNDER OF THE
UNICORN STARTUP AND WHAT HE'S
DONE IS HE'S GONE AND VERY
QUIETLY
BUILT UP. YES AT WHAT IS NOW
ACTUALLY QUITE A BIG BUSINESS
AROUND THESE CLOUD KITCHENS
WHERE HE IS INVESTING HIS OWN
PERSONAL MONEY INTO KITCHENS
THAT
ARE THEN DELIVERING AND
CREATING SUITED TO THEM THAT
WOULD RUN IT WILL BREACH SO
I THINK ADAM WILL LIKELY GO IN
A SIMILAR OUT OF DOING THINGS
FAIRLY QUIET ONLY USING HIS
PERSONAL AND FAMILY TO WATCH
YOU KNOW HIS OWN PERSONAL
ENDEAVORS.
>> ALL RIGHT N