Starburst's Espahbodi on Growing Investment in Aerospace(Audio)

today's afternoon call with Bill Maloney. Bill Good afternoon, Catherine Nane. Savages have reversed their morning losses. Dall Is currently hired by sixty seven points, says it's game five and as that rises by twelve, the small cap six hundres hired by three points, and the US ten yield at one point seven eight per cent. Eight out of tennis B sectors are rising, led by games and Materials, Industrials and telecom.

Utilities and healthcare fell down. Transports gained sixties seven as a bi techs fall thirty, and the vix is down six percent. Down. Leaders to the upside included IBM, Walmart

and American Express. Merkan Apple led to the downside. Earnings movers included Endo International, which fell as much as forty two to the Lowison's two thousand and two, while Activision gained as much as eight point nine percent after as results live from the first breaking news as Gombow Maloney, Katherine, thank you, Bill and to hear live breaking news over your Bloomberg type s q U A K on your terminal,

and here's some breaking news. The deal to make at Charter Communications and number two cable company in the country, has cleared the last federal hurdle. Charter It's murder to buy time Warner Cable has been approved by the FCC and we'll have war details as they become available. That's a Bloomberg business flash. You're listening to taking stock with Kathleen Hays and Pim Fox on Bloomberg. Radio accelerators accelerators for the aerospace and defense industry. What are they? How

do they work? Well, that's why we have Van s. Pabodi. He is a partner and a co founder of Starburst Accelerator. They are based in Los Angeles. They can be followed on Twitter at star Burst I double n O V as an innovation. Well, Van joins us now here in the studio. All right, so innovate, help us understand this world of accelerators and defense and aerospace companies. What's this

all about, Van? I guess the first thing you'd have to think about is the generational gap this world of Silicon Valley startups, even those startups here in the New York area that are trying to find a way to access these big aerospace brands. Who to go out? Who do I talk to at Boeing at Airbus to help

me get that product into the marketplace. Well, when you talk about the marketplace, is it to sell ideas and products to the actual aerospace companies or to go directly to the US government, or maybe a mixture of both. It's a mix. It's never that straightforward. Most people have difficulty navigating these big rules and how to become a supplier. Some tend to represent the future of the industry around

drone technology, um transporter systems. You know, even technologies as interesting as hyperloop might not be aerospace related, but it requires the same sort of engineering. And the background of Starburst has international routes. That's correct. We started in Paris about three years ago and the model UM was easier to be organized because the supply chain in Europe is

much more hierarchical. So it was pretty exciting to get that off the ground and have some good success case studies there and then bring it over here less than a year ago, and we had our first event last October and it's been ramping up pretty quickly since. Give us an idea of some of the companies that you've been working with and some of the services you've been providing.

The word aerospace means a lot of different things to allot of different people, but UM space and drones tend to be the low hanging fruit, those that really start to resonate with people. But there's a lot of infrastructure in between those two world that has just as much opportunity to grow in the industry. So we're learning about new materials and nanotechnology. We're learning about air traffic systems for drones, we're learning about electric propulsion systems for small satellites.

The size of our fists what would be an example of an actual company. So some of the companies that have presented our panels include a millimeter wave radio frequency UM technology that's spun out of Ireland, out of a lab there and they're getting a lot of love from the corporate partners that support our program. Um. They're called a Rolis. Another one I can think of is called Axion. It's developed a nanotechnology for electric propulsion systems really to

make the best use of energy while traveling in space. Um, something around the passenger experience can be around in flight entertainment systems. We're working with companies that are developing lightweight seed technology based out of Singapore. We've also learned about a company that identifies alerts if a drone is flying near an airport to avoid any sort of collision. Well, what's that company? Because that company is called Airmap air Map, and that is something I would imagine that local as

well as federal officials would be interested in. Exactly. They've done very well too, uh, create the attention at a federal level and work very closely with the policy holders in the f a A and the White House. Having said that they in order for this to really get the traction, they've got to work with the drone operators and as well as the local airports. So it's a pretty major undertaking to get that sort of trial and

pilot programs in place with specific air fields. What kind of money does an accelerator like Starburst offer potential companies. So most startup startups at a seed stage that have some strong I P and they really have a pattern or two pending really ready to kind of hit the ground running. They're still really small. They're looking for anywhere from half a million k too as big as ten million.

But it's up to us to kind of walk them through the process and saying some of the whether or not some of their what they're asking for from these investors, including us, is unrealistic or not, and whether or not we can help them reduce that scope through partnering with some of the corporates, which is a critical component of what we do. The company safety Line is one of the companies you've been involved with, and I wonder if you could just describe what they do and how they

connect with what you're trying to achieve. Safety Line has developed an algorithm that analyzes the black box data that most people tend to only identify after an incident has

been made. So what they've done, very carefully and very creatively is use some deep learning algorithm to understand the behavior of an aircraft during the climb phase as a and in order to then provide guidance to a pilot to say, as you're climbing, if you change the speed during your client phase, you can save up to temper cent a fuel. So what they're doing is they're offering airlines this software suite to say, if you run this through your flight management system, we can help you achieve

tem percent fuel reduction in your overall fleet. And if you're able to do it, offer them a creative business model to say, we'll take ten percent of the ten percent. Alright, good, thank you very much for spending time with us. Evan S. Pabodi he is the partner and the co founder of Starburst Accelerator. They're based in Los Angeles and they can be followed on Twitter at Starburst. I double n O v as in innovation companies creating new products and services

for the aerospace and the defense industry. Coming up on taking Stock, we're going to be talking about impact investing. Black Rock has a new exchange traded fund and focuses on sustainable investing. We'll find out why that is a growing portion of people's investment portfolio. Next Bloomberg, taking Stock is brought to by Ancient Block and Ancient named the best accounting firm in North America for the sixth year in a row by hedgeweek dot com.