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Josh Stein, Draper Fisher Jurvetson managing director, on venture capital investing in the technology sector.
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Show in Las Vegas with this big adventure investors should -- Hi there Lorraine gain gal we think about in the consumer electronics do you think about power -- company's iconic companies legendary brand.
You don't -- get that may -- -- -- feeding ground and -- -- farm for venture capitalists but there are venture capitalists here they are.
Private investors are looking did generate -- as finding next big thing.
Wanted to venture capitalists that -- here is John -- Josh dying he's the managing director with Draper Fisher Durbin sent.
Great to have you -- thanks -- -- not surprised that metric hapless coming Aaron because like extent he got established players here is what brings you here.
Yeah I'd say you -- generally working at an earlier stage companies and they don't tend to have a CS presents but they exist within an ecosystem all the big companies obviously so we're trying to understand what the big companies are thinking about.
What their strategies aren't immune to those people there's a great place -- Overall what is your take on.
The venture capital is has an industry there's a lot of headwinds that we're facing economic not skinny that's obviously the question marks in Europe -- hasn't changed your student and that's.
-- Well I think we're we're always watching the macro picture -- we live in a very micro level and venture capital in the companies that word nasty manner.
You know they tend to be growing there -- concerning the no revenue will be growing net doubled news or even triple digit growth.
So the growth is really less constrains.
By the macro environments and we keep an eye on them but -- it's not really driving a giving an example.
Last year was a terrific year for most of our companies and every one of the portfolios that we manage we saw the companies and aggregate went double digit revenue growth -- -- year.
Able to resist whatever's coming on -- on a -- adult level let's talk about these comments comments.
Vulture capitalists yeah being described.
That presidential nominee potential candidates.
Mitt Romney wins exchange as an insider -- it.
-- yeah I I I think it's -- really unfortunate comment I think get down -- sort of misunderstanding of what being capital did and what venture capital is vs private equity Bain Capital.
It's very -- yet what you -- started at I think in the early eighties when I believe their first on track forty million dollars.
And -- doing real venture capital -- and if you look at a company like Staples.
They started to entrepreneurs four million dollars and fast forward ten or fifteen years and it's a huge company.
Later on -- Capital move more into private equity.
Totally different thing that's buying companies taking control positions for billions of dollars.
And then using more financial engineering to -- those companies heading -- manages something like 65 billion dollars.
It is -- do you believe a misperception about what it is that you do fundamentally.
Up on main street level.
Yeah I think if you if you look -- I actually think that venture capital -- -- one of the things that's able to turn the economy around so if you look at venture capital over the last thirty or forty years on -- certainly in technology industry most of the big -- started venture capital into couples I mean it's like ten basis points of GDP it's.
I don't rough order magnitude.
Ten X smaller private equity and hundred next smaller and hedge -- but in 2008 CN BCA that the study.
20% of US GDP comes from companies received venture capital at one point.
Tremendous rate of a huge huge literature.
Before relay guy -- I wanna get your take -- sort of -- -- want big idea I want to take away that you're getting from being yes yes there.
Like I think mobile is the big take away I think this is the year that mobile was finally Iraq we have a company -- which is like the Nielsen in the mobile world.
And their data shows that last year the end of last year mobile Internet news actually surpassed desktop Internet news.
It's growing -- a 100% -- year vs 20% a year and people are saying something like two hours a day on the mobile.
Not sign retriever mr.
Durban sent the venture capitalists see here that consumers are here everybody's here -- and David you believe that they are not here local economy that's involved and -- you read this and now yeah that's our primary and ex bank paying -- Since the Internet pretty strong words there thanks -- --
