1 00:00:18,270 --> 00:00:20,477 Ooh, fuck. Yeah, it doesn't matter. 2 00:00:20,550 --> 00:00:22,314 Whoa. You okay there, Richard? 3 00:00:22,430 --> 00:00:24,273 Uh... Yeah, I'm fine. 4 00:00:24,350 --> 00:00:26,079 Sorry, I can't really throw it any slower. 5 00:00:26,150 --> 00:00:27,390 Give it another cut, Richard. 6 00:00:27,470 --> 00:00:29,234 No, I'm fine. I don't want to. 7 00:00:29,310 --> 00:00:32,200 Maybe someone else wants to. Who's next? 8 00:00:32,270 --> 00:00:34,955 If someone has to go, I'll go, but it seems very frightening. 9 00:00:35,030 --> 00:00:36,759 You sure? You got us for the whole hour. 10 00:00:36,830 --> 00:00:40,198 - Anyone? - Would it hurt your feelings if no one went? 11 00:00:42,790 --> 00:00:44,076 Ladies and gentlemen, 12 00:00:44,150 --> 00:00:47,120 welcome to the annual Stern Taylor Fall Classic. 13 00:00:47,190 --> 00:00:50,080 I'd like to start by making a toast to our very special guest tonight, 14 00:00:50,150 --> 00:00:52,801 Richard Hendricks. 15 00:00:52,870 --> 00:00:57,637 Richard, after your perfect game at TechCrunch Disrupt a few weeks ago, 16 00:00:57,710 --> 00:00:59,474 we fell in love with you and your tech. 17 00:00:59,590 --> 00:01:01,718 Look, we know everyone in the Valley is after you, 18 00:01:02,350 --> 00:01:06,321 and we know that you're probably going to go with Peter Gregory, 19 00:01:06,390 --> 00:01:08,961 but we'd love to have you come play on our team. 20 00:01:09,030 --> 00:01:11,032 Let Stern Taylor Capital Fund in 21 00:01:11,110 --> 00:01:14,398 on your Series A financing, because together, Richard, 22 00:01:14,470 --> 00:01:15,960 we'd be 23 00:01:16,030 --> 00:01:19,239 a home run! 24 00:01:19,310 --> 00:01:22,041 {APPLAUSE 25 00:01:22,190 --> 00:01:23,919 - Oh, fight. - What do you say, Richard? 26 00:01:26,670 --> 00:01:28,195 I'll do what I can. 27 00:01:29,830 --> 00:01:31,594 All right. Have fun, everybody. 28 00:01:34,590 --> 00:01:35,591 I don't know, man. 29 00:01:35,670 --> 00:01:38,116 It's starting to feel weird letting all these firms suck up to us, 30 00:01:38,230 --> 00:01:39,994 even though we're not gonna take their money. 31 00:01:40,070 --> 00:01:43,677 Richard, Peter Gregory hasn't officially given us the term sheet yet. 32 00:01:43,750 --> 00:01:45,832 Yes, but he will tomorrow when he gets back. 33 00:01:45,910 --> 00:01:49,835 If you can't enjoy this many people kissing our ass at this level, 34 00:01:49,950 --> 00:01:51,076 then I feel sorry for you. 35 00:01:51,950 --> 00:01:54,601 Would you just relax and take it in for a second? 36 00:01:54,670 --> 00:01:58,277 I mean, we are getting our dicks sucked at the AT&T Park. 37 00:01:59,630 --> 00:02:02,793 We're standing on the field of the World Series champions. 38 00:02:03,790 --> 00:02:04,871 It's totally lost on me. 39 00:02:04,950 --> 00:02:06,634 Yeah, I don't give a shit, either. 40 00:02:06,710 --> 00:02:09,554 Hey! I'm Nicole Stein. 41 00:02:09,630 --> 00:02:11,519 I lead the Growth Team at Stern Taylor. 42 00:02:11,590 --> 00:02:14,673 - Oh. I'm Dinesh. - I'm Gilfoyle. 43 00:02:14,750 --> 00:02:17,435 I love it. So what do you two do at Pied Piper? 44 00:02:17,510 --> 00:02:19,194 I'm the CTO. 45 00:02:19,310 --> 00:02:21,790 Ah, he's joking. I'm the CTO. 46 00:02:21,870 --> 00:02:23,395 Fuck you, I'm joking. 47 00:02:23,470 --> 00:02:25,677 Okay, how could you be the Chief Technology Officer? 48 00:02:25,750 --> 00:02:30,153 I get it. You hear the word "chief," and you think "Indian Chief." 49 00:02:30,230 --> 00:02:31,561 But you're the other kind of Indian. 50 00:02:31,630 --> 00:02:34,156 Okay. One, fuck you. I'm Pakistani. 51 00:02:34,230 --> 00:02:36,597 And two, how could you be CTO of anything? 52 00:02:36,670 --> 00:02:37,956 You have to be able to organize, 53 00:02:38,030 --> 00:02:39,555 you have to be able to delegate, you have to be... 54 00:02:39,630 --> 00:02:42,076 I delegate you to go get me a fucking beer 55 00:02:42,150 --> 00:02:43,754 while I talk to Nicole. 56 00:02:44,390 --> 00:02:47,314 George Silver, operating partner at Stern Taylor. 57 00:02:48,030 --> 00:02:50,681 So, what do you do at Pied Piper? 58 00:02:51,670 --> 00:02:53,320 He's the CTO. 59 00:02:57,350 --> 00:02:58,511 That's Drew Houston. 60 00:02:58,590 --> 00:03:00,991 We've been circling each other for the last 20 minutes. 61 00:03:01,510 --> 00:03:02,557 Ooh! 62 00:03:02,630 --> 00:03:03,756 The Winklevoss twins. 63 00:03:03,830 --> 00:03:06,879 Look at them. They're like two genetically enhanced Ken dolls. 64 00:03:06,950 --> 00:03:08,793 Do you know how much Bitcoin they're worth? 65 00:03:09,310 --> 00:03:10,835 Oh, shit, they're splitting up. 66 00:03:11,870 --> 00:03:13,554 Cameron's the left dominant one, right? 67 00:03:13,630 --> 00:03:15,917 - I can't tell them apart. - I'm gonna come at him from the right side, 68 00:03:15,990 --> 00:03:18,880 try and herd them back together without spooking them. 69 00:03:19,150 --> 00:03:20,390 Watch this. 70 00:03:20,470 --> 00:03:22,438 Cameron! Cameron! 71 00:03:22,910 --> 00:03:24,958 - Okay. - Well, well, well, 72 00:03:25,030 --> 00:03:27,237 look who's the big swinging dick. 73 00:03:27,310 --> 00:03:30,439 Hey, Javeed, everything okay at Goolybib? 74 00:03:30,550 --> 00:03:32,917 You gotta ask them. They canned me. 75 00:03:32,990 --> 00:03:34,879 - What? - Yeah. 76 00:03:34,950 --> 00:03:37,635 Our investors got spooked by a possible down round, 77 00:03:37,710 --> 00:03:39,678 so they shoved an acquisition down my throat. 78 00:03:39,750 --> 00:03:42,959 Yeah, an acquisition of $200 million, right? 79 00:03:43,030 --> 00:03:47,035 Yeah, they all made out. I had a reverse vest with no triggers, 80 00:03:47,390 --> 00:03:49,757 then I lost all my shares when they fired me. 81 00:03:50,710 --> 00:03:52,792 I blew my whole signing bonus renting that house. 82 00:03:52,870 --> 00:03:55,077 I'm looking into suing 'em. 83 00:03:55,710 --> 00:03:57,041 Jeez. 84 00:03:57,110 --> 00:03:59,078 Look, all I can say is, 85 00:03:59,150 --> 00:04:01,118 don't get fucked, all right? 86 00:04:01,190 --> 00:04:04,512 You take money from the wrong dudes, and you'll get smoked as bad as I did. 87 00:04:05,230 --> 00:04:06,516 Just be careful. 88 00:04:06,590 --> 00:04:08,240 Everyone is watching you now. 89 00:04:08,310 --> 00:04:10,916 Yeah. Totally. I know. Thanks, Javeed. 90 00:04:10,990 --> 00:04:15,359 No. I mean, they're watching you right now. 91 00:04:18,110 --> 00:04:19,919 Yeah. 92 00:04:19,990 --> 00:04:21,719 Damn it. Where is that camera? 93 00:04:33,230 --> 00:04:34,880 I can't believe how many gifts we're getting. 94 00:04:34,990 --> 00:04:38,312 Gifts I'm getting. That Oculus rig is addressed to the CTO. 95 00:04:38,390 --> 00:04:40,040 No, I'm the CTO. 96 00:04:40,110 --> 00:04:43,159 As your superior, I order you to give me that Oculus. 97 00:04:43,790 --> 00:04:45,997 You can't make me do stuff. You're not the boss of me. 98 00:04:46,070 --> 00:04:47,834 - Actually, I am the boss of you. - Okay. 99 00:04:47,910 --> 00:04:49,116 Richard, tell him I'm CTO. 100 00:04:49,190 --> 00:04:51,033 No, you already told that fat guy that I'm the CTO. 101 00:04:51,110 --> 00:04:52,794 Stop, stop, stop. Please stop. 102 00:04:53,790 --> 00:04:55,679 I have a ton of work to do. You have work to do. 103 00:04:55,750 --> 00:04:57,798 Maybe let's do the work instead of that. 104 00:04:59,310 --> 00:05:01,631 Jared, we were supposed to get a term sheet today. 105 00:05:01,710 --> 00:05:03,235 Have we heard from Peter Gregory? 106 00:05:04,110 --> 00:05:05,999 Peter Gregory is dead. 107 00:05:06,790 --> 00:05:07,791 What? 108 00:05:15,670 --> 00:05:17,479 Holy shit. 109 00:05:26,030 --> 00:05:28,192 He was the smartest, 110 00:05:28,270 --> 00:05:31,080 shrewdest, 111 00:05:31,150 --> 00:05:33,630 strangest man I've ever known. 112 00:05:35,630 --> 00:05:37,758 I can't believe that he's gone. 113 00:05:38,110 --> 00:05:41,319 Can I ask what happened? 114 00:05:41,430 --> 00:05:43,194 Yeah. Um... 115 00:05:43,270 --> 00:05:46,114 He was in the Serengeti on safari... 116 00:05:46,190 --> 00:05:48,761 - Ah. - ... and he had just gone into his tent 117 00:05:48,830 --> 00:05:51,800 when a hippo wandered into the camp. 118 00:05:52,270 --> 00:05:53,635 Oh, wow. 119 00:05:54,670 --> 00:05:56,001 He was attacked by a hippo? 120 00:05:56,110 --> 00:05:57,271 No. No. 121 00:05:57,350 --> 00:06:00,991 I guess the hippo started to charge 122 00:06:01,070 --> 00:06:03,516 when the guide grabbed his rifle and shot at it, 123 00:06:05,190 --> 00:06:08,273 but his aim was off, and... 124 00:06:10,070 --> 00:06:12,835 And he shot Peter Gregory by accident? 125 00:06:12,910 --> 00:06:15,356 - Yeah. - No, he missed... 126 00:06:16,150 --> 00:06:19,518 But I guess the sound of the gun startled Peter, 127 00:06:19,590 --> 00:06:23,072 who ran out of his tent and... 128 00:06:25,230 --> 00:06:26,959 Ran right into the hippo? 129 00:06:27,030 --> 00:06:29,954 No, the hippo was also startled by the noise 130 00:06:30,550 --> 00:06:34,919 and had run off prior to Peter exiting his tent. 131 00:06:38,950 --> 00:06:40,714 So, what happened to Peter? 132 00:06:41,350 --> 00:06:45,275 He hadn't run in a long time, 133 00:06:46,070 --> 00:06:50,075 maybe ever, and you know, he just... 134 00:06:53,870 --> 00:06:54,917 That was it. 135 00:07:00,230 --> 00:07:01,277 - Uh. - Uh. 136 00:07:01,350 --> 00:07:04,911 That is so very strange. 137 00:07:04,990 --> 00:07:07,755 - Very sad and tragic. Wow. - Very sad and strange. 138 00:07:09,430 --> 00:07:10,955 See you. 139 00:07:12,510 --> 00:07:13,557 Man, that is so weird. 140 00:07:13,630 --> 00:07:16,918 I mean, one minute Peter Gregory is here, the next, he's just gone. 141 00:07:16,990 --> 00:07:18,196 Jared, it's Erlich. 142 00:07:18,270 --> 00:07:21,353 I need you to set up all the other VC meetings, ASAP. 143 00:07:21,430 --> 00:07:23,114 Line 'em up nuts to butts. 144 00:07:23,190 --> 00:07:25,841 Erlich, what are you doing? Monica just said they're still gonna fund us. 145 00:07:25,950 --> 00:07:27,031 We should just sit tight. 146 00:07:27,110 --> 00:07:31,035 Look, I loved Peter Gregory maybe even more than he loved me, 147 00:07:31,110 --> 00:07:32,350 but there's something you need to know here, 148 00:07:32,430 --> 00:07:35,434 something that Monica isn't exactly volunteering up, 149 00:07:35,510 --> 00:07:38,161 and that's that all of these one-man firms have a key-man clause. 150 00:07:38,230 --> 00:07:39,720 - Do you know what that means? - No. 151 00:07:39,790 --> 00:07:42,270 It means that now that Peter Gregory is gone, 152 00:07:42,350 --> 00:07:43,761 all the Raviga investors 153 00:07:43,830 --> 00:07:46,674 have the contractual right to cash out and walk away, 154 00:07:46,750 --> 00:07:50,072 which means that by the end of the day, there may not be a Raviga. 155 00:07:50,150 --> 00:07:52,721 - Seriously? - Yes, so we have to prepare for that. 156 00:07:52,790 --> 00:07:55,839 Now, I know that it makes me sound like a terrible person, 157 00:07:55,910 --> 00:07:57,071 but we have a company to run. 158 00:07:57,190 --> 00:07:59,397 And do you know who the first person to agree with me would be? 159 00:07:59,470 --> 00:08:00,801 Peter Gregory. 160 00:08:10,950 --> 00:08:13,430 And that is the very first spot in our new campaign 161 00:08:13,510 --> 00:08:15,478 heralding the upcoming release of Nucleus 162 00:08:15,550 --> 00:08:17,234 this January at CES. 163 00:08:17,830 --> 00:08:20,231 - Any questions? - I have a question. 164 00:08:20,310 --> 00:08:21,311 That was horrible. 165 00:08:22,110 --> 00:08:25,592 I just got humiliated by a fucking teenager at TechCrunch Disrupt, 166 00:08:25,670 --> 00:08:28,435 and you give me this tampon ad? 167 00:08:28,510 --> 00:08:30,512 A girl with diabetes on a swing? 168 00:08:30,590 --> 00:08:32,513 - I think she has cancer. - Yeah. 169 00:08:32,590 --> 00:08:34,274 At least that's how I read it. 170 00:08:34,350 --> 00:08:35,875 I don't care what kind of disease she had! 171 00:08:35,950 --> 00:08:40,114 All I care about is that Nucleus is better than Pied Piper. 172 00:08:40,190 --> 00:08:41,840 Hendricks just left us all in the dust. 173 00:08:42,510 --> 00:08:44,194 If we get this wrong, 174 00:08:44,270 --> 00:08:46,671 we could blow the business opportunity of a lifetime! 175 00:08:46,750 --> 00:08:49,276 Data creation is exploding. 176 00:08:49,350 --> 00:08:54,231 With all the selfies and useless files people refuse to delete on the cloud, 177 00:08:54,710 --> 00:08:59,955 92% of the world's data was created in the last two years alone. 178 00:09:00,030 --> 00:09:01,111 At the current rate, 179 00:09:01,190 --> 00:09:05,240 the world's data storage capacity will be overtaken by next spring. 180 00:09:05,310 --> 00:09:07,711 It will be nothing short of a catastrophe. 181 00:09:07,790 --> 00:09:11,840 Data shortages, data rationing, data black markets. 182 00:09:11,910 --> 00:09:15,471 Someone's compression will save the world from data-geddon, 183 00:09:15,550 --> 00:09:19,191 and it sure as hell better be Nucleus and not goddamn Pied Piper! 184 00:09:20,870 --> 00:09:22,360 I don't know about you people, 185 00:09:22,430 --> 00:09:23,716 but I don't wanna live in a world 186 00:09:23,790 --> 00:09:27,875 where someone else makes the world a better place better than we do. 187 00:09:33,550 --> 00:09:37,475 "Data-geddon." Is he married to that, or... 188 00:09:37,550 --> 00:09:39,757 There's just been a lot of "geddons" lately. 189 00:09:39,830 --> 00:09:42,481 That's true. "Snow-mageddon,"car-mageddon." 190 00:09:42,550 --> 00:09:44,598 There's that movie Armageddon. 191 00:09:49,710 --> 00:09:51,758 Laurie, you wanted to see me? 192 00:09:51,830 --> 00:09:53,878 Monica, come in, come in. I'm sure you've heard by now 193 00:09:53,950 --> 00:09:55,793 that I've been named our new managing partner. 194 00:09:55,870 --> 00:09:57,599 Yes. Congratulations. 195 00:09:57,670 --> 00:10:00,833 Did the limited partners tell you how they made their decision? 196 00:10:01,270 --> 00:10:03,238 Oh. They looked at the portfolio performances 197 00:10:03,310 --> 00:10:05,551 of each of the senior partners over the last several funds, 198 00:10:05,630 --> 00:10:08,156 and my numbers were, objectively, the most favorable. 199 00:10:08,230 --> 00:10:09,834 Therefore, I was selected. 200 00:10:09,910 --> 00:10:14,552 Yeah, it's just managing partner is all about meeting with people 201 00:10:14,630 --> 00:10:16,439 and interacting with people. 202 00:10:16,510 --> 00:10:18,399 You can sit down if you want to. Do you want to? 203 00:10:18,470 --> 00:10:20,120 - Oh... - Or should we stand? 204 00:10:20,350 --> 00:10:22,034 Uh... I... Whatever... 205 00:10:22,110 --> 00:10:23,111 - I'm standing... - Okay. 206 00:10:23,190 --> 00:10:24,351 But you don't have to. 207 00:10:24,950 --> 00:10:27,840 - Okay. - Would it make you feel awkward to sit? 208 00:10:27,910 --> 00:10:29,321 I'm okay to stand. 209 00:10:30,710 --> 00:10:33,156 - Monica... - Of course. 210 00:10:33,510 --> 00:10:35,160 Peter Gregory is dead. 211 00:10:36,110 --> 00:10:37,874 Yes, I know. 212 00:10:37,950 --> 00:10:42,239 On a personal note, his death is very sad. 213 00:10:42,310 --> 00:10:45,154 But on a professional level, it's untenable. 214 00:10:45,230 --> 00:10:46,391 I've been reviewing his files. 215 00:10:46,470 --> 00:10:48,950 He was pursuing a number of extremely dubious positions. 216 00:10:49,070 --> 00:10:53,712 Are you aware that we own a $30 million ostrich farm in Morocco, 217 00:10:53,790 --> 00:10:56,714 or that we are the majority stakeholders 218 00:10:56,990 --> 00:10:59,470 in three companies that specialize in invisibility? 219 00:10:59,630 --> 00:11:04,352 This box is filled with napkins covered with notes detailing Peter's conviction 220 00:11:04,470 --> 00:11:08,361 that genetically-modified cranberry fungus would become the next cotton. 221 00:11:08,470 --> 00:11:10,518 - That... That one I remember. - Yes. 222 00:11:11,630 --> 00:11:13,041 - Monica. - Mmm-hmm. 223 00:11:13,990 --> 00:11:15,640 Peter Gregory is dead. 224 00:11:16,950 --> 00:11:18,600 - Yes. - We need to seem competitive, 225 00:11:18,670 --> 00:11:20,081 now more than ever, 226 00:11:20,150 --> 00:11:23,359 to our investors as well as to the industry at large. 227 00:11:23,430 --> 00:11:24,431 Well, I mean, 228 00:11:24,510 --> 00:11:28,481 Pied Piper is probably the hottest early investment in town right now, 229 00:11:28,550 --> 00:11:29,790 and we have them. 230 00:11:29,870 --> 00:11:31,520 Do we? 231 00:11:32,270 --> 00:11:35,638 But why then are they speaking to other firms about investing in their Series A? 232 00:11:35,710 --> 00:11:38,520 No, no. I just told them to sit tight for a day or two 233 00:11:38,590 --> 00:11:39,830 until we sorted things out. 234 00:11:39,910 --> 00:11:44,120 It seems that that advanced a sense of uncertainty, 235 00:11:44,190 --> 00:11:46,397 and now we're at risk of losing their round. 236 00:11:46,470 --> 00:11:48,916 This could jeopardize the firm 237 00:11:48,990 --> 00:11:51,960 and, by extension, your career here, Monica, 238 00:11:52,030 --> 00:11:53,520 as an associate partner. 239 00:11:53,590 --> 00:11:56,275 Well, I guess I was just kind of in shock. 240 00:11:56,350 --> 00:11:57,431 Monica... 241 00:12:00,590 --> 00:12:02,399 Peter Gregory is dead. 242 00:12:04,870 --> 00:12:07,271 Yes. I know. 243 00:12:09,030 --> 00:12:10,270 This is great. 244 00:12:10,350 --> 00:12:12,796 I mean, do you know how many times I've gone into these rooms 245 00:12:12,870 --> 00:12:15,840 with nothing but a half of an ass in my hand? 246 00:12:15,950 --> 00:12:20,717 We're walking in there with 3-foot cocks covered in Elvis dust. 247 00:12:21,910 --> 00:12:24,561 - Really? - Richard Hendricks? They're ready for you. 248 00:12:25,390 --> 00:12:28,041 - This is a fucking layup, guys. - Okay, let's do this. 249 00:12:29,710 --> 00:12:31,200 Not you, Jared. 250 00:12:31,910 --> 00:12:33,833 Now, with proper funding, 251 00:12:33,910 --> 00:12:38,677 we should be able to put together a functioning beta in time for CES 252 00:12:38,750 --> 00:12:43,119 and compress Nucleus out of the marketplace. 253 00:12:46,310 --> 00:12:47,880 Yeah. 254 00:12:47,950 --> 00:12:48,997 I don't know. 255 00:12:50,030 --> 00:12:51,520 You don't... What? 256 00:12:52,150 --> 00:12:54,118 It just doesn't seem worked out to me. 257 00:12:54,950 --> 00:12:59,433 Well, I mean, it was worked out enough to win TechCrunch Disrupt. 258 00:12:59,510 --> 00:13:02,354 Yes, and congratulations, you won 50 grand, 259 00:13:02,430 --> 00:13:05,877 but you're asking us for 200 times that. 260 00:13:05,950 --> 00:13:10,751 Richard, look, we all know about your amazing compression rate, 261 00:13:10,830 --> 00:13:12,958 but let's not be naive here. 262 00:13:13,030 --> 00:13:16,113 You can't expect to just throw money at an algorithm 263 00:13:16,190 --> 00:13:20,036 and beat one of the largest tech companies in the world. 264 00:13:20,110 --> 00:13:21,760 So why don't you rework this a little 265 00:13:21,830 --> 00:13:24,561 and come back in with a little more? 266 00:13:24,630 --> 00:13:26,280 Maybe next week? 267 00:13:28,230 --> 00:13:29,277 And? 268 00:13:29,670 --> 00:13:31,752 That was really weird. 269 00:13:31,830 --> 00:13:34,800 I guess we don't have as much Elvis dust on us as I thought. 270 00:13:34,870 --> 00:13:37,555 You see? This is why I wanted to go with Peter Gregory. 271 00:13:37,630 --> 00:13:38,677 This is bullshit. 272 00:13:38,750 --> 00:13:42,391 I mean, that guy throws this huge party for us and then acts like he doesn't even want us? 273 00:13:42,470 --> 00:13:43,995 I mean, I fucking hate parties. 274 00:13:44,070 --> 00:13:45,959 And then he says, "Come back next week when you have more." 275 00:13:46,030 --> 00:13:48,761 More? More than 5.2 on Weissman? 276 00:13:48,830 --> 00:13:50,514 No. No. 277 00:13:50,590 --> 00:13:53,799 Fuck that guy. Fuck this place. Fuck this whole place. 278 00:13:54,310 --> 00:13:56,392 - Watch me fuck this place. - No, wait! Wait, wait! 279 00:13:58,030 --> 00:14:01,432 Hey. You remember when you told me to come back when I had more? 280 00:14:01,510 --> 00:14:03,080 And then I said I would? 281 00:14:03,150 --> 00:14:06,757 Well, I'm not going to. Ever. This doesn't count. Okay. 282 00:14:06,830 --> 00:14:09,436 I'm covered in dust. I'm a 3-foot dick, 283 00:14:09,510 --> 00:14:12,036 and I've got half an ass to go to some other company 284 00:14:12,150 --> 00:14:15,120 who's never gonna put me on a Jumbotron or throw balls at me. 285 00:14:18,590 --> 00:14:19,830 Bye. 286 00:14:27,270 --> 00:14:29,955 Are you feeling unwell? Do you need protein? 287 00:14:30,030 --> 00:14:31,395 I don't know what happened. 288 00:14:31,470 --> 00:14:34,758 Between Peter dying and Raviga maybe being gone, I just... 289 00:14:34,830 --> 00:14:36,832 I just wanna get funded and build Pied Piper. 290 00:14:36,910 --> 00:14:38,275 I hate this part. 291 00:14:39,030 --> 00:14:40,953 Well, if one thing is for sure... 292 00:14:41,030 --> 00:14:44,273 if we're gonna get any traction, I need to step up my game. 293 00:14:44,390 --> 00:14:46,074 It's an email from Ron LaFlamme. 294 00:14:47,390 --> 00:14:49,791 "Just got a term sheet from Stern Taylor. 295 00:14:49,870 --> 00:14:54,034 "They offered $5 million at $25 million post-money valuation. 296 00:14:54,150 --> 00:14:55,390 "More than I thought." 297 00:14:55,470 --> 00:14:56,960 Shit. They were negging us. 298 00:14:57,070 --> 00:14:59,038 - Negging? - Negging is going negative. 299 00:14:59,110 --> 00:15:02,512 It's a manipulative sex strategy used by lonely chauvinists. 300 00:15:02,590 --> 00:15:03,796 See, everybody wants us. 301 00:15:03,910 --> 00:15:08,154 But, by shitting all over us, they try and bring our price down. 302 00:15:08,230 --> 00:15:12,155 But you shitting all over them counteracted their shitting all over us. 303 00:15:12,230 --> 00:15:15,473 You negged a neg. Richard, this could be good. 304 00:15:15,550 --> 00:15:17,917 - Where do we have next? - Ross Loma Capital. 305 00:15:17,990 --> 00:15:19,480 Should I keep doing it? Should I keep negging? 306 00:15:19,590 --> 00:15:21,035 No, no, I'll handle this. 307 00:15:21,110 --> 00:15:23,761 If they want to negotiate using hostility and rudeness, 308 00:15:25,030 --> 00:15:26,759 well, they picked the wrong guy. 309 00:15:27,590 --> 00:15:30,400 Well, you see, our main concern 310 00:15:30,470 --> 00:15:33,758 is how you're going to achieve escape velocity on your growth rate. 311 00:15:33,830 --> 00:15:35,434 If critical mass... 312 00:15:36,910 --> 00:15:39,072 I'm sorry. What's funny? 313 00:15:39,150 --> 00:15:41,312 It's just that painting behind you. 314 00:15:41,390 --> 00:15:43,119 It's awful. 315 00:15:43,190 --> 00:15:46,831 It looks like harlequin Kama-sutra done poorly. 316 00:15:47,470 --> 00:15:49,871 So, I agree, 317 00:15:49,950 --> 00:15:51,793 bad culture fit. 318 00:15:51,870 --> 00:15:53,713 I think we all just move on. 319 00:15:53,790 --> 00:15:55,201 Look, I didn't say anything about a culture fit. 320 00:15:55,270 --> 00:15:56,795 No, I did. 321 00:15:57,390 --> 00:16:00,041 Okay. Well, 322 00:16:00,110 --> 00:16:01,396 thank you for meeting with us. 323 00:16:01,470 --> 00:16:03,359 We have a bunch of these things to go to, 324 00:16:03,430 --> 00:16:06,161 hopefully with more tasteful artwork. 325 00:16:06,230 --> 00:16:09,712 And your logo looks like a sideways vagina. 326 00:16:09,790 --> 00:16:12,361 I find that to be racist, don't you? 327 00:16:15,870 --> 00:16:17,031 Okay, here's my concern... 328 00:16:17,150 --> 00:16:20,871 Here's my concern. Who the hell picked out that shirt for you? 329 00:16:20,950 --> 00:16:22,111 What? 330 00:16:23,150 --> 00:16:25,391 Oh, I see. With the pants. 331 00:16:25,470 --> 00:16:28,155 So I guess it's a whole thing. 332 00:16:28,230 --> 00:16:29,800 My wife picked these out. 333 00:16:29,910 --> 00:16:31,241 Then you married poorly. 334 00:16:31,510 --> 00:16:34,400 Do you care about Pied Piper? 335 00:16:34,470 --> 00:16:37,360 Do I care about Pied Piper? Well, of course. 336 00:16:37,430 --> 00:16:39,751 Cause if you do, I'm not seeing it. 337 00:16:39,950 --> 00:16:44,717 In fact, what I think I'm seeing is the human equivalent of a flaccid penis. 338 00:16:45,830 --> 00:16:48,481 "Flak-Sid." It's actually pronounced "flak-Sid." 339 00:16:48,550 --> 00:16:49,961 Not a lot of people know that. 340 00:16:50,030 --> 00:16:51,839 Well, we are definitely interested, 341 00:16:51,910 --> 00:16:54,436 but I think we need to... 342 00:16:54,510 --> 00:16:56,638 I'm sorry. Ls something wrong? 343 00:16:56,870 --> 00:16:59,601 No, this is all wrong. 344 00:16:59,670 --> 00:17:01,957 I am sensing a general lack of vision. 345 00:17:03,190 --> 00:17:04,760 Your muffins smell like shit. 346 00:17:04,830 --> 00:17:06,514 So do your ideas. 347 00:17:07,230 --> 00:17:10,120 One of you is the least attractive person I've ever seen, 348 00:17:10,190 --> 00:17:12,079 and I'm not gonna say who. 349 00:17:13,550 --> 00:17:15,951 Should we leave or should you? 350 00:17:16,030 --> 00:17:19,398 We just got offered eight at 40. 351 00:17:19,470 --> 00:17:21,040 We're five for five, gentlemen. 352 00:17:21,110 --> 00:17:23,716 And Galveston Capital Fund and Yountville Ventures called. 353 00:17:23,790 --> 00:17:25,952 They want to move their meetings up before everyone else. 354 00:17:26,030 --> 00:17:28,795 Hey, let me try. I want to be rude at this next one. 355 00:17:28,870 --> 00:17:30,110 Go for it. 356 00:17:30,190 --> 00:17:31,476 So, with some proper funding, 357 00:17:31,550 --> 00:17:34,235 we should be able to get a functioning beta in time for CES. 358 00:17:35,310 --> 00:17:37,597 And if you don't fund us, 359 00:17:37,670 --> 00:17:39,798 you're a fucking slut. 360 00:17:42,990 --> 00:17:44,230 Oh... 361 00:17:44,310 --> 00:17:46,836 What's that smell? Is that a fart? 362 00:17:47,830 --> 00:17:49,070 Are you a farter? 363 00:17:50,070 --> 00:17:54,120 Now, can I have a pastry? Or are you guys gonna eat 'em all? 364 00:17:55,470 --> 00:17:57,393 'Cause you're gonna get fat. 365 00:17:59,910 --> 00:18:04,040 It's not your fault, Richard. This is just something that can't be taught, 366 00:18:04,110 --> 00:18:07,637 so leave the next one to me. I can feel a big one coming on. 367 00:18:07,710 --> 00:18:08,711 What are you gonna do? 368 00:18:09,270 --> 00:18:11,432 I'm not sure yet, but give me room. 369 00:18:11,510 --> 00:18:14,036 There's something inside of me that has to come out, 370 00:18:14,110 --> 00:18:15,635 and who am I to stop it? 371 00:18:18,070 --> 00:18:19,231 His balls? 372 00:18:19,710 --> 00:18:21,474 He put his balls on the table? 373 00:18:21,550 --> 00:18:23,678 - Right on the table. - On purpose? 374 00:18:23,750 --> 00:18:26,276 I don't see how it could be by accident. 375 00:18:26,350 --> 00:18:29,513 Richard, I just got an email from the guys at Midland-Oak. 376 00:18:29,590 --> 00:18:31,957 Apparently, there is a line, and I crossed it... 377 00:18:32,950 --> 00:18:36,875 The line between $12 and $15 million! 378 00:18:37,110 --> 00:18:38,316 Ba-bam! 379 00:18:38,390 --> 00:18:40,040 Midland-Oak's offer just came in. 380 00:18:40,110 --> 00:18:44,513 Gentlemen, we are valued at 75 million, fully diluted. 381 00:18:44,630 --> 00:18:45,791 Are you shitting me? 382 00:18:45,870 --> 00:18:47,474 Take a look at these term sheets. 383 00:18:47,590 --> 00:18:49,672 There is a linear correlation 384 00:18:49,750 --> 00:18:51,400 between how intolerable I was... 385 00:18:51,510 --> 00:18:53,114 and the height of valuation. 386 00:18:53,790 --> 00:18:56,111 Hey, YOU guys. Um... 387 00:18:56,190 --> 00:18:59,194 This is Laurie Bream, the new managing partner at Raviga. 388 00:18:59,310 --> 00:19:02,553 Oh, uh... Hi. I'm Richard Hendricks. 389 00:19:02,630 --> 00:19:05,474 Yes. I recognize you from your photograph. 390 00:19:05,550 --> 00:19:08,599 - It's very nice to meet you in person. - Yeah. 391 00:19:08,670 --> 00:19:09,751 Okay, so we did that. 392 00:19:09,830 --> 00:19:12,117 Gentlemen, I am aware of the degree of interest 393 00:19:12,190 --> 00:19:13,316 you are receiving from other firms. 394 00:19:13,390 --> 00:19:17,520 I am aware that participation in your Series A will require a very competitive offer, 395 00:19:17,590 --> 00:19:20,514 but for numerous reasons, I believe it to be the prudent decision. 396 00:19:21,070 --> 00:19:25,200 Now I am presenting you with this. 397 00:19:25,830 --> 00:19:29,880 $20 million at $100 million valuation? 398 00:19:29,950 --> 00:19:31,759 I don't... Uh... 399 00:19:31,830 --> 00:19:34,436 This is way more than any other offer. 400 00:19:34,510 --> 00:19:35,591 Correct. 401 00:19:36,830 --> 00:19:38,070 That is very much intentional. 402 00:19:38,470 --> 00:19:41,280 So, I believe that satisfies your requirements? 403 00:19:41,350 --> 00:19:43,751 Monica will arrange a time to formalize the details. 404 00:19:43,830 --> 00:19:45,400 Thank you. Have a good day. 405 00:19:46,230 --> 00:19:47,470 Uh, thank you. 406 00:19:48,990 --> 00:19:49,991 Yes. 407 00:19:53,070 --> 00:19:55,835 Congratulations, guys. I am so glad... 408 00:19:57,030 --> 00:19:59,715 Oh, shit! She's my ride home. I'll call you, Richard. 409 00:19:59,830 --> 00:20:01,275 Uh, yeah, okay. 410 00:20:01,870 --> 00:20:04,396 - Thanks for stopping... - Wait! Laurie, hold on! 411 00:20:06,190 --> 00:20:08,192 Guys, I think we're funded. 412 00:20:08,270 --> 00:20:10,637 - Yes! Richie! - Yeah! 413 00:20:14,750 --> 00:20:17,720 So, I push my dick to the side, unbutton the bottom two buttons and... 414 00:20:17,790 --> 00:20:18,791 Barn! 415 00:20:20,390 --> 00:20:21,516 Ah! 416 00:20:21,590 --> 00:20:23,319 - What are you doing? - Shit. Sorry, sorry. Sorry. 417 00:20:24,750 --> 00:20:26,912 Meet me on the side of the house. 418 00:20:26,990 --> 00:20:28,958 - I... Okay. - Okay. Okay. Go. 419 00:20:30,390 --> 00:20:32,313 - Hey. - Hey, what's up? 420 00:20:32,390 --> 00:20:35,792 If anyone finds out that I came back here, I will get fired, okay? 421 00:20:35,870 --> 00:20:37,554 Okay. 422 00:20:37,630 --> 00:20:40,474 - Don't take this deal. - What? 423 00:20:40,550 --> 00:20:43,121 You are worth half that at best. 424 00:20:43,590 --> 00:20:45,638 Oh, wow. Thanks for the compliment. 425 00:20:45,750 --> 00:20:48,196 No. The credit to you guys. You negotiated your asses off, 426 00:20:48,270 --> 00:20:50,637 but this is a classic runaway valuation. 427 00:20:51,470 --> 00:20:53,120 What's wrong with that? 428 00:20:53,190 --> 00:20:58,276 Pied Piper will be tied to this crazy valuation that you will never be able to live up to. 429 00:20:58,910 --> 00:21:02,198 If you don't keep increasing in value in the next round, 430 00:21:02,270 --> 00:21:04,591 if you have a down round, you are fucked. 431 00:21:04,670 --> 00:21:07,674 It is the kiss of death for a young CEO. 432 00:21:07,750 --> 00:21:11,436 You want to start with a realistic valuation and grow at a reasonable pace. 433 00:21:11,510 --> 00:21:16,038 Okay, well, if it's such a shitty deal, then why did your boss offer it to us? 434 00:21:16,110 --> 00:21:18,158 Because she's competitive as hell. 435 00:21:18,230 --> 00:21:21,040 She needs Pied Piper to keep Raviga afloat, Richard. 436 00:21:21,110 --> 00:21:22,760 - Okay. - Look, I respect Laurie, 437 00:21:23,190 --> 00:21:25,875 but this is the exact type of thing Peter never did. 438 00:21:27,150 --> 00:21:29,198 Richard, come on. I own shares in Pied Piper. 439 00:21:29,270 --> 00:21:31,352 If this high evaluation was good in the long-term, 440 00:21:31,430 --> 00:21:33,319 would I be standing here, risking my job? 441 00:21:34,550 --> 00:21:35,631 Don't take our offer. 442 00:21:35,710 --> 00:21:38,077 Maybe go with the lowest offer you got. 443 00:21:38,150 --> 00:21:39,879 Even that might be too high. 444 00:21:39,950 --> 00:21:42,874 Again, thank you for the compliment. 445 00:21:43,670 --> 00:21:47,994 Also, I didn't see anything in there. 446 00:21:48,070 --> 00:21:50,072 No. Yeah, thank you. 447 00:21:50,190 --> 00:21:52,477 I was gonna say if you had, you'd have to show me yours, too. 448 00:21:55,230 --> 00:21:56,834 Um... 449 00:21:56,910 --> 00:21:59,993 - Okay. - Okay. Thanks for the... 450 00:22:00,070 --> 00:22:01,071 Okay. 451 00:22:16,030 --> 00:22:17,441 Yeah, sorry about that party. 452 00:22:18,310 --> 00:22:20,039 I was in kind of a bad way that night. 453 00:22:20,110 --> 00:22:23,512 And truth is, I'm actually doing okay. 454 00:22:23,950 --> 00:22:26,237 - Good. That's great. - Yeah. 455 00:22:26,350 --> 00:22:29,240 I mean, I could run the scenarios about what happened all I want, 456 00:22:29,670 --> 00:22:33,561 but I finally just realized there's just nothing I can do, you know? 457 00:22:33,630 --> 00:22:34,916 Yeah. 458 00:22:34,990 --> 00:22:37,755 So, I'm at peace with it all. 459 00:22:37,830 --> 00:22:40,151 I was thinking, actually, um, 460 00:22:40,230 --> 00:22:42,836 what if you had asked for less? 461 00:22:44,310 --> 00:22:45,357 What? 462 00:22:45,470 --> 00:22:47,518 Well, what if you could've gone to someone 463 00:22:47,590 --> 00:22:50,196 and asked for less than what they offered that first round? 464 00:22:50,510 --> 00:22:52,672 Like, you mean, negotiating them down? 465 00:22:53,310 --> 00:22:55,119 - Yeah. - Can you even do that? 466 00:22:55,190 --> 00:22:58,160 - Well, yeah. I mean, why not? - Yeah, but... 467 00:22:59,870 --> 00:23:03,272 I mean, I guess, technically, I could have. 468 00:23:03,350 --> 00:23:04,397 Mmm... 469 00:23:04,510 --> 00:23:05,716 Huh. 470 00:23:05,790 --> 00:23:09,556 Yeah, I suppose you could argue that it might've been easier 471 00:23:09,630 --> 00:23:13,351 to hit more realistic benchmarks 472 00:23:13,710 --> 00:23:14,916 and reach cash flow break-even. 473 00:23:14,990 --> 00:23:16,355 Yeah, that's what I'm saying. 474 00:23:17,350 --> 00:23:21,833 And then, we wouldn't have faced that down round. 475 00:23:23,630 --> 00:23:25,075 And... 476 00:23:26,710 --> 00:23:28,917 We wouldn't have had to settle for acquisition. 477 00:23:30,550 --> 00:23:31,836 All that money 478 00:23:32,790 --> 00:23:33,837 fucked me. 479 00:23:33,910 --> 00:23:35,958 Wow. I mean, I don't know about... 480 00:23:36,030 --> 00:23:37,680 - Shit! - Maybe. 481 00:23:37,750 --> 00:23:41,800 - Look... Hey... - No, no, no. We could've done a legit Series B. 482 00:23:41,870 --> 00:23:43,520 Right? I'd still be CEO. 483 00:23:43,590 --> 00:23:46,070 I'd have my job, 484 00:23:46,150 --> 00:23:47,515 my kick-ass house. 485 00:23:47,590 --> 00:23:49,718 I'd probably still have my girlfriend... 486 00:23:52,110 --> 00:23:54,636 - Fuck! - Okay. 487 00:23:54,710 --> 00:23:57,759 Why the fuck didn't anyone tell me I could take less? 488 00:23:57,910 --> 00:23:59,912 I don't know. I don't know. 489 00:24:01,070 --> 00:24:02,196 Ideas come up and then... 490 00:24:02,270 --> 00:24:03,681 Fuck! 491 00:24:03,750 --> 00:24:06,276 I'll take a cab, so I'll leave you to it. 492 00:24:06,350 --> 00:24:07,590 Thanks for meeting me here. 493 00:24:08,230 --> 00:24:09,231 Fuck! 494 00:24:16,590 --> 00:24:17,876 Richard. 495 00:24:18,950 --> 00:24:21,794 Richard, I'm Laurie Bream. I was inside your home yesterday. 496 00:24:21,870 --> 00:24:23,793 Have you made a decision regarding our proposal? 497 00:24:23,870 --> 00:24:29,115 Yeah, yeah, we'll go with you guys, but we need to renegotiate the terms. 498 00:24:29,190 --> 00:24:32,239 I'm afraid that's untenable. We're offering as much money as we can. 499 00:24:32,350 --> 00:24:35,513 Uh, no, no, we wanna go lower. We want less... A lot less, actually. 500 00:24:36,470 --> 00:24:37,437 We'll go with Raviga 501 00:24:37,510 --> 00:24:41,356 if you guys do $10 million at a $50 million valuation, 502 00:24:41,430 --> 00:24:42,841 not 20 at 100. 503 00:24:43,390 --> 00:24:44,915 I think this is more reasonable, 504 00:24:45,030 --> 00:24:48,751 and it's my final offer. Take it or leave it. 505 00:24:48,830 --> 00:24:50,070 I was not anticipating this, 506 00:24:50,150 --> 00:24:52,994 but I think it will be workable from our end. 507 00:24:54,830 --> 00:24:57,913 And one more thing, Monica votes for Raviga's board seat. 508 00:24:59,350 --> 00:25:01,591 Certainly that seems unimportant. 509 00:25:02,230 --> 00:25:05,518 I will telephone your lawyer tomorrow, and we can speak about the relevant details. 510 00:25:05,590 --> 00:25:06,796 Good. 511 00:25:15,350 --> 00:25:19,116 Peter was one of the few who genuinely took action 512 00:25:19,230 --> 00:25:22,279 to use technology to help humanity thrive. 513 00:25:22,350 --> 00:25:24,273 But how exactly can we quantify 514 00:25:24,350 --> 00:25:26,830 another human's contributions to mankind? 515 00:25:28,350 --> 00:25:30,796 Let's break it down into its three component elements. 516 00:25:36,110 --> 00:25:40,832 I met Peter when he was thinking about investing in my company, Zettasphere, 517 00:25:40,910 --> 00:25:42,514 although I think he was hesitant 518 00:25:42,630 --> 00:25:45,600 after his disappointing initial return from Snapchat. 519 00:25:45,670 --> 00:25:50,073 He came on board, anyway, and every month we would meet. 520 00:25:50,310 --> 00:25:52,039 Peter was always an honest man, 521 00:25:52,270 --> 00:25:54,796 and I know that if Peter were here with us today, 522 00:25:54,870 --> 00:25:57,191 he would say that he was not disappointed in Snapchat. 523 00:25:57,710 --> 00:26:01,271 And he would forgive you, Lev, for your misunderstanding. 524 00:26:01,350 --> 00:26:03,591 That's just the kind of guy that Peter was, 525 00:26:03,670 --> 00:26:06,150 warm, generous, 526 00:26:06,230 --> 00:26:09,120 and not disappointed in Snapchat. 527 00:26:15,830 --> 00:26:19,232 I'll never forget the first time I met Peter. 528 00:26:19,310 --> 00:26:22,553 It was in his mom's garage, where we started our first business together 529 00:26:22,670 --> 00:26:25,674 manufacturing VGA graphics cards for IBM clones. 530 00:26:26,950 --> 00:26:28,076 We never looked back. 531 00:26:28,150 --> 00:26:29,879 And you know, the last time I saw him, 532 00:26:29,950 --> 00:26:33,238 it was at a restaurant, not a half-mile away from that same garage. 533 00:26:33,310 --> 00:26:34,880 We talked, as old friends do, 534 00:26:34,950 --> 00:26:37,601 he asked me about Jackson Hole, 535 00:26:37,670 --> 00:26:40,753 I asked him about Pilates. 536 00:26:41,270 --> 00:26:43,921 And yet, something was wrong. 537 00:26:44,910 --> 00:26:48,915 Underneath it all, there was an unmistakable tension. 538 00:26:49,590 --> 00:26:51,592 A tension I will forever regret. 539 00:26:52,110 --> 00:26:54,556 It's no secret Peter and I had our differences. 540 00:26:55,350 --> 00:26:57,352 We let business get between us. 541 00:26:57,430 --> 00:26:59,159 NOW? 542 00:26:59,230 --> 00:27:01,517 Now I wish I could say I'm sorry for that. 543 00:27:01,590 --> 00:27:03,797 Now it's too late. He's gone. 544 00:27:04,550 --> 00:27:08,157 And it makes me realize the importance of forgiveness, 545 00:27:08,230 --> 00:27:11,757 of doing things with love and compassion in your heart, 546 00:27:11,830 --> 00:27:13,958 and not vengeance and competition. 547 00:27:15,230 --> 00:27:18,393 I mean, we owe that to each other, don't we? 548 00:27:18,470 --> 00:27:19,517 And to him? 549 00:27:20,350 --> 00:27:23,559 After all, this valley is the place Peter himself helped build. 550 00:27:23,990 --> 00:27:26,914 Where we come together as dreamers, 551 00:27:26,990 --> 00:27:28,321 all of us, 552 00:27:28,390 --> 00:27:31,121 to truly make the world a better place. 553 00:27:32,430 --> 00:27:35,400 This is Florence during the Renaissance. 554 00:27:35,470 --> 00:27:37,074 This is Camelot. 555 00:27:37,590 --> 00:27:41,800 This is the place Peter himself called "the cradle of innovation." 556 00:27:45,830 --> 00:27:47,480 I will miss my friend. 557 00:27:50,270 --> 00:27:51,920 Bye, Pete. 558 00:27:55,070 --> 00:27:57,038 Maybe he is a human, after all. 559 00:28:00,830 --> 00:28:02,355 I'm sorry. 560 00:28:02,710 --> 00:28:04,235 It's from Ron LaFlamme. 561 00:28:05,630 --> 00:28:07,394 "Gavin Belson is suing you. 562 00:28:07,470 --> 00:28:09,837 "Filed claims today that you stole Pied Piper from Hooli." 563 00:28:10,630 --> 00:28:11,870 Shit. 564 00:28:19,350 --> 00:28:21,318 Gavin Belson is suing us.