1 00:00:06,700 --> 00:00:12,009 So let me talk a bit about the macro trends that we are seeing in technology and what we're investing in, 2 00:00:12,010 --> 00:00:17,240 because this actually paints a bit of of the view of where I think things are getting interesting around around technology. 3 00:00:17,260 --> 00:00:24,580 So. At the core for me is the acceleration and proliferation of data as an asset. 4 00:00:24,700 --> 00:00:29,680 And yet I think very few entrepreneurs and very few companies still understand the competitive advantage that data can provide for them. 5 00:00:30,250 --> 00:00:35,200 But to start with, let's start with mobile devices, right? The number, the billions, the billions of phones that are now in your hand, 6 00:00:35,860 --> 00:00:43,240 the fact that somebody in Kenya can actually buy a $75 Android device that has more computing power there than the Apollo 13. 7 00:00:44,080 --> 00:00:47,799 The fact that that computer, that the supercomputer is now tied to the cloud, 8 00:00:47,800 --> 00:00:52,640 the fact that the cloud has infinite amounts of computing power, a fraction of sense. 9 00:00:53,230 --> 00:00:57,220 The fact that now storage on an AWB server is pretty much free. 10 00:00:57,980 --> 00:01:03,190 But the decelerated deceleration of the cost of storage and you combine both of these things so you have a 11 00:01:03,190 --> 00:01:08,290 consumption device and interaction device combined with effectively the world's largest supercomputer on the cloud, 12 00:01:08,560 --> 00:01:10,120 allowing you to do some magical stuff. 13 00:01:10,480 --> 00:01:16,030 And the magical stuff delights the consumers and makes their lives easier and allows you to play Angry Birds and Candy Crush. 14 00:01:17,110 --> 00:01:21,700 But all that creates is massive amounts of data. And you lay across all of that a social layer. 15 00:01:21,880 --> 00:01:26,800 And social doesn't mean only Facebook. Social means. WhatsApp and WeChat in Asia. 16 00:01:26,800 --> 00:01:32,890 And Kakao and Line in Korea and Japan. It means Twitter and its own social graph and LinkedIn. 17 00:01:32,890 --> 00:01:37,299 But there's real identity that permeates through mobile devices on the web where you can actually 18 00:01:37,300 --> 00:01:41,290 find that the right person in the right points and service them with the right proposition. 19 00:01:43,180 --> 00:01:47,710 Early in my career, I used to build data warehouses, so I guess I was early in what's now called big data. 20 00:01:48,370 --> 00:01:52,480 And people, these retailers are spending millions of dollars building. 21 00:01:53,790 --> 00:02:02,619 Insights into their customers. And so Tesco Ecom today still knows me as simply the guy that buys beers and diapers and once in a while 22 00:02:02,620 --> 00:02:07,690 the F.T. because all they see is my transaction line data with some third party demographic information. 23 00:02:08,230 --> 00:02:14,800 You compare that with what I've told Facebook about myself that is the world's largest and most beautiful demographic database that has ever existed. 24 00:02:15,250 --> 00:02:19,630 The stuff that I tell Facebook, I will never tell Tesco what movie I like, what song I listen to, 25 00:02:19,930 --> 00:02:24,370 what where I checked in, what movie I went to, what play I wanted to go watch. 26 00:02:25,030 --> 00:02:28,030 That's all there. And if I choose to as a user, 27 00:02:28,180 --> 00:02:34,060 you as as an entrepreneur can actually mine that data and you can actually derive insight into who I am and how to serves me better. 28 00:02:34,420 --> 00:02:36,860 And very few companies actually recognise that value. 29 00:02:37,150 --> 00:02:43,270 The power that exists when the data combined from the sensors of mobile devices and Internet of Things 30 00:02:43,510 --> 00:02:49,300 with the computational power of the cloud and the that effectively freed data storage now exists. 31 00:02:49,660 --> 00:02:54,670 And if you combine all these trends together, you start being able to disrupt e-commerce and marketplaces, 32 00:02:54,670 --> 00:02:59,170 the ability to create dynamic supply and demand. So think about Uber and Hailo, right? 33 00:02:59,170 --> 00:03:03,010 The fact that you can now literally remote control your transportation needs. 34 00:03:03,190 --> 00:03:07,930 It benefits the environment because you use your car less. It provides jobs for people that might not have had jobs. 35 00:03:08,230 --> 00:03:14,380 It provides convenience for me in London to actually be in a car and actually increase my my economic output by more. 36 00:03:15,190 --> 00:03:19,720 I would say cleaning out my inbox is not increasing economic output, but at least it lets me feel better about myself. 37 00:03:20,560 --> 00:03:27,130 Financial services and what's happening around FinTech and London is naturally a home and a hub for fintech around the world. 38 00:03:27,490 --> 00:03:31,630 But look at what TransferWise and the way they've completely disrupted how peer to peer lending works. 39 00:03:32,200 --> 00:03:38,380 And in a way, how elegantly they did it. Instead of having to have money flow from here to France and therefore pay the interchange fees. 40 00:03:38,650 --> 00:03:41,860 They just hold the balance in France and here and effectively becomes a ledger, 41 00:03:41,860 --> 00:03:48,430 takes them out here and added over there and they allow you that the user to have a much lower transaction fee for for money transfer. 42 00:03:48,730 --> 00:03:54,820 There's actually this this this thesis around the unbundling of banks and why we as consumers would 43 00:03:54,820 --> 00:03:58,930 ever think about having just one provider when we could actually go out and shop for different options. 44 00:03:58,930 --> 00:04:01,960 And yet we do in a way because we're losing, because our banks market to us. 45 00:04:02,290 --> 00:04:06,430 But why would I use the best price option for money transfer for loans? 46 00:04:06,790 --> 00:04:11,710 Lending clubs are a great example for for current accounts for savings, 47 00:04:12,580 --> 00:04:16,960 and that's actually powered by the trends around data and the insights in the customer. 48 00:04:17,800 --> 00:04:21,370 I call them affinity networks. Fred Wilson from us, we call them communities. 49 00:04:21,370 --> 00:04:25,240 But these passion points in people's lives that are not represented on Facebook. 50 00:04:25,570 --> 00:04:30,280 So Facebooks are horizontal network. We're friends, but we might not have the same passions. 51 00:04:30,520 --> 00:04:34,450 People's passions are sports or fashion or politics. 52 00:04:34,750 --> 00:04:39,010 It's how do you create these communities of passion where people get to share their emotions, 53 00:04:39,010 --> 00:04:43,240 share what they care about, and therefore drive deeper engagement? And then how do you monetise that engagement? 54 00:04:45,310 --> 00:04:50,200 The whole revolution around SAS as a new business model where effectively computing can happen on the cloud, 55 00:04:50,200 --> 00:04:56,709 you don't have to have the infrastructure inside your business. It allows you as a small business to compete with Fortune 500 companies because 56 00:04:56,710 --> 00:05:00,640 you have as good systems which were effectively price prohibitive in the past. 57 00:05:01,720 --> 00:05:06,370 And then the just the way in which iPads and mobile devices have have redefined, 58 00:05:06,370 --> 00:05:12,730 the way in which we create and consume content and the way in which we actually get entertainment in the way in which we play games, 59 00:05:13,030 --> 00:05:18,610 the way in which we actually monetise games through micro-transactions. It's something that the East was doing ten years ago. 60 00:05:18,620 --> 00:05:23,320 Tencent was already making hundreds of millions of dollars on top of stickers on on messaging. 61 00:05:23,590 --> 00:05:26,320 And now the latest craze in the Valley is messaging apps. 62 00:05:26,800 --> 00:05:31,690 So slowly, I think the this balance of power is beginning to shift from the west towards the east. 63 00:05:31,990 --> 00:05:38,980 And we are beginning to learn something that inside China has been happening for a long time and is now emerging towards towards Europe and the US.