From Marhard where Innovation of Money and Power Collie in Silicon Valley, NBN.
This is Bloomberg Technology with Caroline Hyde and Ed.
Ludlove live from Bloomberg's World headquarters in New York.
I'm Caroline Hyde and.
I'm Ed Lovelow. This is Bloomberg Technology.
Coming up.
More IPO coverage ahead. Klavio becomes a third major US listing in a week. We sit down with the CEO and investors in the company.
And Germany wants to ban key parts from Huawei for its five D mobile network as the country reviews its reliance on Chinese tech. We have more ahead.
Plus, Amazon announces a new smart home device and a generative AI based Alexa.
Will discuss the features with device chief David Limp.
Yeah, let's get a check on the market. This will be quick because we're going nowhere on any asset class related to technology. Otherwise it is FED day. We will have special coverage of that FED decision later this afternoon. And basically the market sees them holding rates steady. You look at the n as that one hundred completely flat and now as that Gone Dragon index, it had been
slightly out performing up a few tens one percent. We're going to be talking about US China relations in the context of tech later in the show, that of Europe as well, US tenure yield four point three percent, and then Bitcoin holding at twenty seven thousand US dollars per token. This is the definition Caroline of treading water ahead of a big FED decision.
Yeah, all eyes on the macro. Just go micro for a moment. Though the individual stock movers are interesting, there are some updates coming from certain companies, and I'm looking at the likes of Intel, for example, has been well I mean pairing an earlier decline, but notably we are seeing it currently off by more.
Than two percent.
This is maybe that Invasion Day didn't live up to expectations. In particular, we wanted some color around eighteen A Chips, who are the customers?
We didn't get that we're off by two percent?
Apple, I highlight off by nineteen percent, Ubs saying the color on iPhone fifteen is at best in terms of some of the ultimate desire to be buying in and what are the backlogs looking like. Pinterest on the up more than four percent as it's investeday looks promising monetization there to be had.
But what's on the downside kart. Let so I have a little look at.
The latest IPO on the block that came yesterday. It is still higher over the last couple of days. Remember thirty two dollars twenty it is above we're at priced at thirty dollars.
But we are coming off of that euphoric high.
The pop was in excess of forty percent and then so ended the day down a twelve percent rise. Now we fade that a little bit more as just investors perhaps start to take a little bit of profit it.
Let's stick with IPOs. It is the theme of the week of the show and get straight to the third major US listing in a week marketing in data horsemation provider Clavier joining us on set. Who else the man who runs to break news, Ryan gord I think we saw that Clavio indicated to open between thirty six to thirty eight dollars. The IPO priced at thirty dollars build up for US towards this listing.
Yeah, I mean it's the second ipodprice the thirtieth share this week. Obviously Instacart price to thirty a share. I would say, you know you Caroline you've just brought attention to instacart. Is the is the sun coming up on IPOs?
Maybe, but maybe.
Maybe it's just not quite enough to know fully thaw the frost. And I think that's what we're hearing. It's, you know, let's see what happens today with Clavier. The quotes of thirty six thirty eight. Of course weak, there's going to be some shifting around there, but it was it seemed to be, you know, it's this, it's the third major offering in a week. There's clearly momentum. I spoke to Andrew this morning, Andrew Bilecki, co founder, and
see you in a bit. He'll be on on shortly, and he said, you know, his claim is that if you're a company that has discipline, if you're a company that has good union economics, you can get out there and investors will listen to you. So I think it's a it's a it's a claim. I'm sure we'll see it in a while, but we're.
About to go to a very long term investor whose real view is this is a company that has capital discipline. What's notable, it's all of these companies are pricing at the top end of the range, and so they're managing to lock in a decent amount of money, not leaving as much perhaps on the table as some worried armhad are. Ultimately, who are the players who wanting to get into these particular deals?
Because Clavier is a.
B to B player, Instacut much more retail focused. Do we know who's trying to buy in on first day?
You know, it's a good question because when you think that Clavier is the first IPO pretty much in two years to come from the enterprise software sector, we're used to seeing this particular window prior to Thanksgiving being full of these companies. Obviously, let's take COVID out of the picture and think about twenty nineteen rather than twenty twenty one.
But this is generally the type of class that we're expecting to see because they have the good fundamentals, they have the good unit economics, they have those kinds of
those those headlines. Really that a lot of the big investors like t row so on, will you know, think about, you know, maybe in the future as being part of their part of the picture for them, But you know, as far as the retail side of the of it goes, I mean again, we're going to get another test probably in the next couple of weeks of Berking stock, so we can I would yeah, probably, As I say, the foster frost not fully thawed. Let's see what happens in a couple of weeks time.
The excitement when we have an IPO window like this is why you have the employees who want some liquidity for their stock. You have the venture capitalists who are coming on the show talking about why they got in early, the bankers who'd bankrolling it. You know what's terrific about our deals team is you have this on the ground
reporting is their genuine sustained excitement. In other words, do the sources that we speak to think the IPO window carries on or it's kind of a short lived euthoria ed.
You know, I've been covering IPOs for a while, and the fact that people are now wanting to take calls to talk about IPOs probably tells us, you know, kind of where we're heading. It's just funny that you don't really have to find so much of an excuse anymore to bring up the idea that you know there's going to be a company ipoing. You had probably been laughed
out the door. Maybe as recently as six months ago, but you know, back to the point I think about what drives it for some of these benure capital firms. Of course, you know, in Klavio's case, even it's still AI, it's you know, going long on machine learning. These are still the headline BuzzFeed, you know, buzz terms that you
know really helped to push these these offerings. And you know, if you can get that in front of your investors on the road show and you know, really drill down into why you're going to be at the forefront of those trends, then you know they're all is all right.
Bloombog's Ryan Gord, thank you, get out of here, go do some recording and joining us now. I'm absolutely delight, say Caroline John Carlin, Acadian Software executive chairman who was an investor in Klavyo in its series B and series D. And John, if you allow me, I just want to tell a bit of your story. You invested seven million dollars early twenty sixteen. At that time klavey O was ten people. Just explain to us in the audience what today means to you as one of the original backers.
Oh, it's a huge milestone for me and more importantly for the company it was. It was always just an exceptional, unique company. The thing about Andrew and Eden team is that they were able to grow the business from the early stage without running big losses and never really need additional funding after that.
So now to be here at the.
Center of commerce the NYSC floor is kind of amazing given to the company was never really about raising huge amounts of money.
In the early days.
What it is about is SaaS. It's about software.
It's about ensuring that it can help other companies get the right digital message out at the right time. John, how much are we seeing them having a moat in this particular instance. How much can they ensure that they rise above the competition now that they're public?
Oh boy, I'll tell you what this is. There's a pretty significant mode here. The technology that this company has built from the earliest days has defended its pricing, has defended this and really been the engine behind this unbelievably efficient growth machine.
John.
We were just hearing a bit about your story, the fact that you believed in this company before anyone else. Ultimately ten people seven million checks. Following on with further checks.
And the B the D round.
What ultimately was the recipe for you? What you say, it's capital discipline, but there must have been something else that really got you excited as a general SaaS investor, Andrew.
And ed from their earliest days they were walking to the beat of their own drum. They're pretty unconventional entrepreneurs, and that they were super focused on the customer, super focused on building products, not really interested in talking to investors. That's a different type of recipe and it really got me excited in the early days because they were so technology in product centric.
John, Can I ask you how you're going to yourself transact in this listing and IPO? You know? Will you remain a long term investor of Klavier? Yeah?
So, as an early stage investor, we sold eighteen percent, which was sort of a pro rad amount of the early stage investors here did. And I'm a really proud holder of the remaining sharedes there. I have absolutely no intention to sell anytime soon.
You would note something I think that we discussed with Ryan that this is the first company in the space to go public for quite some time. Go to public in two years, we're talking SaaS enterprise call it what you will, automation. Does that signal anything more broadly to you about what's happened in the last two years the attitudes will hire multiple software companies.
Yeah, sure, Obviously it's been a pretty long drive spell for software IPOs. But at the end of the day, the thing that hasn't changed on what's most important you pull the lems back here and the general tailwind for software automation throughout the economy, that's the thing that's not gone away. There's sort of no sign of any movement. It's happening as aggressively as it ever has and so for this is a good milestone. Clavey O to be the first one to go public. I think it says
something about the quality of the company. But probably most importantly, there's nothing slowing down the demand for software as option.
What's not slowing down at the moment is the hype around artificial intelligence too. John, how much has that had to become part of the business model and part of the messaging or do they not particularly adopt that?
Oh?
No, absolutely, I think I think the interesting thing with Clavio is that machine learning has always been at the core of the product, and so maybe messaging has been catching up a little bit lately with a business like this one over the last you know, six twelve months, but it's always been core to what the business does.
John, we're indicated to open in between thirty six and thirty eight dollars. We priced at thirty. Just talkts me about the day itself and what you're feeling right now on the floor of the New York Stock Exchange. Oh, yes, an emotional day. I was looking around.
We have three hundred Klavio's here today on the.
Floor joining the celebration.
A lot of ogs that I was catching hadn't seen in a long time. It's a special moment for that group. But as Andrew and Ed said recently this morning, they're kind of one percent done. That's always been their mantra. I wouldn't bet against them.
Sean Colin, thank you for your time today. We'll let you get back to the celebrations and waiting to start trading.
Okaian Software executive thank you, say, well, here's the chairman there.
I meanwhile, look, we've been talking so much about AI and ultimately not only the hype factor, perhaps some of the risks and indeed the regulation I caught up earlier with a meta president of Global Affairs, that's Nick clegg As at a Concordia summit in New York City where we talked about all of those things, particularly also about the open source nature in which well Lama too in particular has been rolled out.
Just take a listen.
It's foundational technology. It's like an operating system. It's something which pervades everything, and lots of things will be built on top of it.
Of course, you can never perfectly.
Predict how it will be used, and you can't perfectly sort of litigate for that in advance, and no doubt there will be people who will try and use it for bad purposes.
But in general it is.
Accepted in the sector that open sourcing these things leads to safer models because you you can then openly look for vulnerabilities and fix them. And that's certainly the attitude that we believe is right at this stage on this great AI journey. Just take hate speech.
The prevalence of hate speech.
On Facebook now is down to about zero point zero two percent. And by that I'm not just making about that's stuff that we starts. We publish every every quarter, and they're audited by I think it's ey independently, so we're not just marking our own homework, so that every ten thousand bits of content that you'd see online on Facebook, two bits of content might be hate speech, and that is down by about fifty sixty percent over the last couple of years for one reason only AI, because our
classifiers are just getting much better. So I think it's worth remembering, particularly you and I talked about this backstage, particularly in advance of all these hugely consequential elections which are happening next year in the US, Mexico, the European Union, possibly the UK, and so on. That yes, generative AI might enable bad people to try and generate bam and misleading content more quickly, also allows platforms like us to
act against that much more quickly. So it is an adversarial space where where where hopefully, and that's our task. We you that we can use those tools more nimbly and more effective than our adversaries, So the sooner we can get beyond the kind of oh my gosh, is it going to be the end of the world kind of thing, which I think has a paralyzing effect on the debate.
It doesn't.
It's just going along and when there's bias in the here and now.
And yes, I think there are a lot of here and now issues that we can deal with, whether it's elections, whether it's misinformation, whether it's transparency, whether it's provenance.
And I.
Certainly urge lawmakers to kind of, you know, fixate.
On that matter.
President of Global Affairs, Nick Klag, and we were really broad in. Nicklegg's someone who worked as a member of parliament in Europe, so he understands European Commission, you worn't there, who is a government official costs?
He understands that. But what about China.
Yeah, it's it's someper mind for every tech company large in the context of AI. So all our say is to our global bloombo technology audience, go and check out the full panel because China was one of the surprising elements of that conversation. Okay, time for talking tech. This is what we're seeing in the news. First up, WhatsApp users will now be able to pay for services in
India using the app. Parent company Meta is expanding the feature to that country after launching it in Brazil and Singapore. Payments will be free for consumers, However, businesses will pay a processing fee similar to a credit card transaction, and Apple store workers in France have called for a national strike this weekend, right as the iPhone fifteen is set to go on sale. A group of unions are in pay negotiation talks with Apple France, pushing for a seven
percent increase to offset inflation. Apple has offered a four point five percent increase. The company has not responded to our requests for comment plus US comments. Tech Retree Gena Raimondo is raising concerns over the speed and scale of China's technological advancements. During a congressional hearing Tuesday, Ramondo said the release of Huawei's Mate sixty pro phone with an advanced chip had upset her, but she also noticed that the US there's no evidence that China can make those phones.
Components on mass Caroline.
I mean, let's stick with that theme because the US isn't the only country suspicious and China technology, Huawei's technology, and particularly look, Germany's Interior ministry wants to ban key Huawei parts from its own five gen mobile network. Let's get the context. Makes Oliver crookers with us, and I.
Mean, what's the stake?
Heare how integral is Huawei to Germany's technology infrastructure.
Well, one of the issues is they actually don't know. So this is a debate that dates back to the Merkele era, but the question of whether or not they would have wa Huawei in the five G network the Mercle era located. Of course, we all know a lot has changed since the Mercle era, particularly in the relationship with China.
The problem is they.
Don't know the volume of of hardware that is in this network and how dependent they are. So they launched an audit in the spring to try to figure that out, and the government didn't really keep track of it. So now we understand the Interior Ministry, as you say, is pushing to ban Huawei and ZTE from the five G network. This could be potentially a huge undertaking, particularly because they
don't know how much of it there is. And this is all part of the d risking and this is a new category of D risking, all in the wake of the Russian invasion of Ukraine. You know Russian gas, but now it's really about Chinese tech.
I've this is a technology and infrastructure story. I remember going through the five G supercycle in this country. In North America, took years of getting the infrastructure in place before there was any coverage at all. What's the timeline for Germany? You can't just say, you know what, we're not going to use that anymore, We're going to get over someone else.
Well, it's betting a number of timelines, but one of them is get it all out by twenty twenty six. That's what we understand from some of the talks, which is a very abbreviated timeline, particularly for Germany, which is not particularly known for going at light speed for this sort of thing, this sort of thing. But again, the audit isn't done yet. It still needs to go through a number of other ministries and they're gonna have to
consult with the network providers. But basically Deutsche Telecom has said this is totally unrealistic. The UK, which is trying to do something very similar, has set out a timeline from seven to ten years. But there's going to be really real a debate in weighing all the pros and cons. And again, a nation that is sort of behind in digital infrastructure.
I mean, very briefly, who do they turn to if it's not Wawai Erikson, I mean, where are they getting the tech from.
Yeah, it will be Ericson and Nokia, but that comes with a number of questions itself. Do they have the volume of material that they need in the amount of time, at what costs? You know, there are not a lot of cheap alternatives for Russian gas or Chinese tech. And the third question is really is the cost of development for the digital infrastructure in Germany. Germany has some of the lowest fiber penetration in all of Europe. We're talking
about eight percent of households have fiber in Germany. It's fifty one percent in France and eighty one percent in Spain. So they're already behind and they need to play catch up.
All right, Bloom bears out of a krookout in Germany. Good to catch up, thank you. Switching keys is very quick. Neuralink is taking the next steps to make science fiction closer to reality. The Brain Implants startup, led by Elon Musk, is seeking out patients in its first clinical trial. Neuralink is asking for people with quadripedia due to spinal cord injury or als and Caroline. This is a story that
caught your eye. It is fast moving. They have the FDA exemption for an investigational device, and they have a hospital on board to perform the procedure. What do you make it?
Going their hands up?
And I mean, ultimately we know that there's been the view on animals, we're now looking.
At real life impact.
This is again an Elon Musk company, of which what's they're six or seven now, but really pushing technology forward in a deeply sort of untrodden space. And I think again it's just about the safety, the precautions that come into place, and ultimately who ends up driving forward this sort of technology that.
The long term promise is to reverse the impacts of severe, severe brain and spinal injury. But in the first instance, Neuralink is talking about using the human brain with the implant to move a mouse cursor. Right. This is the kind of small steps that we're taking. But it was really interesting to see them say, okay, let's get on with it.
Yeah, and I think in many ways ultificial intelligence again something that people are depending on in this particular area.
Meanwhile, coming up, look, we've.
Got so much to get back to in the world of IPO. Land Clavier, third major US listing this week, prepares to start training we'll break down the details of the IPO next, maybe or even get a price as in Bloembag Technology. Time now for work shifting. It's time that we look at the changing landscape of the labor market amid some advancers and technology.
Today we're going to.
Focus on how much more in depth you are at marketing and automation, in particular of the software that goes with it. Because Clavio is going public, what does the company do? As last Katie Rufe And really this is all about helping brands target you and I in the most efficient and effective manner, right.
Sure, Yeah, So they do email marketing, text marketing. They work with brands from Unilever, they work with popular sunscreen brands Supergroup and Gen's brand Good American. They're helping reach out to their customers over email and text.
Just remind our audience that Clavio indicators open at thirty six to thirty eight dollars a share. The ipoid priced at thirty dollars a share, Katie, been a busy week for you, busy ten days? You know? Where does this listing compare with those that have gone before?
Yeah?
And so it's interesting because all three of these big tech companies that are going public right now are in very distinct sub sectors within tech, and so there's talk about if Klavio goes well, that it could open up the window for the SaaS market. Obviously, enterprise software is a big part of what venture capitalists invest in in. For a while, we saw many companies going public in
that category. Certainly Clavio is very different than many of those companies, but the closer we can get any sort of indication of investor public investor interest, you know, then that helps build confidence for those other companies that are preparing to go public.
And I think pretty big Intelligence have done some great analysis really on the ultimate valuation that we're getting in this company at around about what nine billion wealthy You look at the thirty dollar price point, and that's kind of in line, if not a little bit toppy when you're looking at other software SaaS companies out there, the adobes of this world.
So it's pretty large for a venture backed company going public that's in enterprise software. A lot of times we see companies in that category going public that are maybe one billion, two billion in in size, so I think it's actually would have been getting more attention, but it's been a little bit overshadowed by arm and Instacart, but it's a big company out of Boston, and people in the industry or watching this one closely.
All right, Bloomberg's Katiereuth, thank you, and stay tune. Coming up on the show, Klaviyo's CEO, Andrew Bioleki is going to join us as soon as we get to the New York Stock Exchange. This is Bloombog Technology. Welcome back to Bloomberg Technology. I'm Caroline Hyde and I meed Loveo. We are standing by for Clavio to start trading. Indicated open thirty six thirty eight dollars a share. The IPO
price at thirty dollars a share. Bloomberg Shnali Bassacus with us and has been lamenting off camera that after this IPO she's going to have to wait for another flood of IPOs. But tell us why you're watching this one so closely?
A few reasons.
One for the banks, it is a reopening for them as well. Remember they have not had any significant business besides ken You this year, and when you look at ken You, it's kind of traded sideways. So after this set of results or IPOs. Rather, you have these fairly significant pops for the market that we're in. But what
happens to the window after that? Birkenstocks may have tried to list in the coming weeks, there could be some choppiness in the market, but it would really be q one until we see the next wave of listings SaaS or not. And so I think there's a lot of skepticism out there on how much the windows actually open after clavey Oh, but I don't want to take that away from Goldman Sachs and Morgan Stanley and City Group,
which are the lead underwriters on this particular deal. Win for Nicy the last tour on Nasdak, so big win for those players.
At the very least, let's go over to that nice Shanati Bessie. We thank you for that setup, because standing by at the New York Stock Exchange is Andrew Baielecki, Kavio's CEO. We don't want to take away this day from you. You're standing by waiting for the first trade.
What has this wide been like here?
Oh man, it's been a great day.
Just so thankful for the fifteen hundred klaveyos around the world, one hundred and thirty thousand customers that have bet on us. We had some of our customers join us today on the floor. The five thousand partners we have. It's a very humbling experience. We're very excited about what we built. We're gonna have a little fun today and then we're excited to get back to work tomorrow.
Andrew John Carlin, one of your first investors, joined us in the show. He spoke about how justified this opportunity is for your business. In particular, your stock is indicated to open between thirty six to thirty eight dollars a share, u ipo'ed at thirty dollars. How do those numbers make you feel? You know, we don't.
We feel great about the business that we've built. And you know what, we don't don't spend a lot of time focusing on the stock price where it's going to keep focusing on customers, keep growing this business. We think we're very early. We've got a really durable business model and we're playing with some big macro trends. You know, businesses getting closer to their customers, building digital relationships with the data that they own, which is no long way to go.
Talk about those one hundred and thirty thousand more than paying users and how much they want to see their marketing strategies really intensified by generative AI.
It's interesting that that's been.
The playbook of the last couple of IPOs.
Is that something you've leant into.
Is that a macro trend that was already there and you're embracing it earlier.
Yeah, we've had a whole team dedicated to machine learning and AI for the last five or six years, so we're excited to use some of the large language model technology. I'll tell you customers like Tailor Made, Cord Brands, Unilever, Skims. We've got so many customers and we believe that the future of let's just take marketing as one application, the future is software that knows how to use itself.
Take marketing.
Instead of building a marketing campaign where a user, customer, marketer has to figure out what's the right design, I think the future is the software is going to help guide them so that they can be more successful, you know, aided by all of the data that we have the collective Clavio ecosystem.
You know, and you note the data, but what is your technological point of difference. What is it that Klavio can do that no one else can? Sure?
Yeah, we actually started Klavio as a database, a data infrastructure company, and we spend a lot of time architecting a database that is good at both the kind of machine learning analytical queries that folks run, but also the can power real time use cases like, for instance, what we do with messaging other marketing.
So I think that's the future.
I mean for us, we've thought about this database as kind of the brain of a business, and on top of that brain, you can build all these different software applications.
So we built one with marketing. But Boil is a long way to go.
Of course, they're a global company, one one thousand, five hundred employees here across eighty countries. If you're looking at your customers, where are you going to be deploying your newly raised money?
Is it about talent? Is it about marketing? Where next?
Well, it's always about talent.
We're always looking for really driven folks to come join us. But yeah, I mean, you know, we have larger We started the business focus on small businesses. My co founder and I we have a lot of small businesses. Any in our families. What we found is Clay was actually a great fit for small businesses and large enterprises. So we're going to be moving up market and then international expansion. I'm so excited about all of the klaviers we have in our London office, our Citney office, all the way
around the world. I think there are millions of businesses that should be running on Klavio, and we're excited to take our technology to more of them.
Andrew, I appreciate that we haven't even started trading yet. I know that you're excited. You have a long day ahead of you, But what's his priority Number one when you wake up tomorrow to Klavier? Well, prior to probably might make my kids breakfast.
But after that, you know, look where I have a lot of thank you notes to write, a lot of people to you know, celebrate. I've started doing some of that this afternoon. I'm just I'm so proud of what fifteen hundred people have put in over the last decade, and you know the best is yet to come.
You're Boston based, so maybe you hotfoot it back on the East coast to wake up with the kids and have them breakfast. What does it mean for the Boston ecosystem here, Andrew.
No, we're a global company. But you know, both my co founder.
Ed and I we love the Boston ecosystem. And I've been so privileged to get to know a lot of the public company CEOs in Boston, in the you know, New England area.
They've been so supportive of us. I am very.
Excited, you know, in the next coming years, coming decades, to pay it forward. I think there are so many talented folks building in around Boston, and I'd love to help them.
However I can. I'll give you a second there, and you just put your ear piece back in there. You go. Look. IPOs are all about numbers, Caroline and I obsess over them. But there's also this kind of public image side of the story. Have you already seen any traction from new customers that have engaged with you because of the big shiny IPA that you're doing. I think so.
The way we think about it is that part of being a public company is showing the world you know, how you run your business and saying that you're going to be there for a long time.
That's a big reason why we went public. Today. I've talked with so.
Many of our customers said, we love what Clayo's doing. Are you guys going to be in it for the long run? And the answer is yes. And I think this moment is just another vote comp you know, another way to show that Yes, if you want to build a business, if you're in for the long run, we're there with you. We're going to help you grow, get closer to your customers, and whatever your dreams are. Our michievement is to help people own their destiny. We're just excited to keep doing it.
You've got to own your investor base now, Andrew, And how do you feel that that narrative changes the way you run a business. The investors have been with you for an awfully long time. Do they stick with you? What sort of bias do you want to be seeing today?
Yeah, you know, we've had ed and I have had a point of view on investors. You find people that believe in what you believe in. We believe in aiming long term, getting close to customers, being a disciplined company. I'm really excited for our public shareholders, you know, and to have them. And look, if you believe in those things, then you know we're gonna be excited to work with work with those folks.
I'm gonna let you rip that earpiece out and hand it back so they can operate it now is We'll get you a bigger one next time.
Andrew, Yeah, sorry bad, Yeah, you know you've.
Been a joy.
We thank you so much for joining us, and we're excited to see where the first trade takes you. Go back with the team, Andrew Bailecki, he's the Clavey CEO on the day of trade. Meanwhile, coming up, how a Danish medical software startup is competing with big tech giants the lucrative healthcare market, which will be funding but still not public yet. Corty CEO Andreas Cleve is going to be with us a tom A co partner as well. Laura' connell join us. Next, this is Bloomberg Technology. Let's talk
about Corty. It's a Danish medical software startup. It's just raised sixty million dollars to sell an AI co pilot to more hospitals, basically compete with the likes of Microsoft, Amazon, other tech giants racing into the healthcare space. Let's bring in, of course, at CEO Andreas Cleeve as well as co found for the business and alongside the investor laura' connell, partner at Attomaca. We're sure we're helping with the fundraise here. And I start with you, Andreas, what exactly you bringing?
How are you augmenting people who are going to treat people in hospitals? What is the copilot allowing them to do?
So?
Thanks for asking.
We are augmenting the professional. So we're a tool that sits on the side of the patient and the professional as they have an interaction or a consultation. So imagine a small digtail assistant that, as the conversation progresses in real time, will be taking notes.
We'll be journaling the conversation.
We'll be comparing symptom descriptions to more than fifty million other patients. Will try to help the healthcare professionals steer the conversation to the best possible outcome with the least amount of administration burden happening afterwards. And hopefully, not only will that free up a ton of time, but it will also make sure that the professional has all the time to focus on the patient and not the paperwork
while they're interacting. And I think all of us who have tried healthcare things that's really important.
Laura, are you having lead Atomico's investment in Courty. You've got an AI focus, an enterprise SaaS focus, a fintech focus.
What drew you towards.
COURTI yeah, thank you for asking me. At Atomico, what we're most focused on is trying to invest in and back teams and founders who are really trying to solve some of the most important generational issues that we face.
I think a few people disagree that healthcare and health tech is one of the key areas that we most need to fund, So we spent a lot of time looking at the full value chain and figuring out where along the value chain we thought that some of the latest elements in AI could most help not only in terms of improving patient care outcomes, but also in driving cost efficiency and revenue optimization for key hospital providers who, as we know, are buckling under the strains of inflation,
resource constraints, and a frontline care worker health force that is really struggling with with things like burnout and depression post the COVID.
You know, andreas AI that is the technology, but I'm actually just interested in the data. There are many giant technology companies working out how they can enter this healthcare space. I was in Cupertino last week at Apple. Right, theirs is more about emergency situation detection, but it's machine learning based. Do you look at the likes of Apple and worry that they similarly want to be a part of this healthcare process, the same part that you're occupying.
I think it's exciting to see more big vendors entering the space, but I also think we've all now tried many of these new EI technologies and fund them lacking. And what we call with is a uniquely vertical AI system. And for the lay person, that means it's uniquely specialized
in one thing, and that is actually healthcare interactions. And that's still unique because a lot of the big systems are still built for the horizontal use cases, the very average, everyday use cases, whereas we're very focused on this exact interaction.
We're just going to pause this conversation for a moment.
We have some breaking news of Klavio opening at thirty six dollars seventy five. We have the opening price for the initial public offering of Klavio. Thirty six dollars seventy five is currently where we trade so a big uplift from the thirty dollars where they priced now ultimately, and we are seeing once again a pop in the latest ipo. We've been sitting here wondering how Instacot was going to be performing. On the day they had a forty percent
pop at the open. We know that ARM also traded significantly higher, but notably, we are seeing these companies taking advantage of this window and managing to line up the demand and the supply side. Once again, this is a company that had cornerstone investors, but perhaps more the more desirable a area road find us. I'm Shamali and Abigaild little standing by. Let's go to Abigail fest. He's just hey with the opening trade.
Yeah, well, we have another exciting IPO here, the third large one in a week. Right now we have the shares of Klavio up twenty one percent, so really very positive, and of course it priced at thirty dollars that was above where they were initially marketing this ipo at twenty seven to twenty nine, and just today we saw a bunch of different ranges thirty six to thirty eight, from thirty four to thirty six.
This ipo was thirty.
Times over subscribed. So right now it seems very very successful evaluation.
Of about eleven billion dollars.
And of course you just had that wonderful interview with the CEO and the what some are calling bread and butter technology.
This might be a good sense for next year.
A lot of people are looking at these IPOs to see is it greasing the runway for next year, especially around technology IPOs.
Now, on the other hand, it's.
Interesting because we do, of course have the FED later today. We still have some inflation concerns. That's what's kept the IPO window largely closed this year. So we continue to have this big question of whether or not we are
now seeing the reopening of the window successfully. Now we don't know that yet because while arm was very successful on its first day, it's traded back down there from Instacart, same thing yesterday, up about twelve percent now coming in a little bit, but overall very successful start here for claviow up twenty one percent.
A Miguel Didle literally running to set breathlessly telling us about well the pulp that was seeing of twenty three percent. Shanali Besse has been standing by waiting for this opening. Trade and you know, this is once again about Cornerstone Investors. This is once again about limiting supply and ensuring that this has been really well managed by some of the banks.
Yeah, the management of this IPO with a Cornerstone Investors Alliance, Bernstein, Blackrock. Remember top ten clients took fifty five percent of the deal while the top twenty five took eighty percent of the offering. That left roughly two hundred investors with no
allocation at all. Yet you look at this, and that's according to Amy Or who has been reporting on this through Resources, eleven billion dollar company at the opening trade at thirty six seventy five, that is what you have Klavio now valued at in the market, give or take. You have it fluctuating slightly in the market. That twenty two percent pop that was less than what you saw at instacart, despite those two hundred investors getting no.
Allocation at all. It will be interesting.
Now we are just hours away from a FED decision, and so let's see where Klavio ends the day and goes into tomorrow. The end of this week is an important moment for both Klavio and instacart because now that these IPOs the pricing itself have gone so successfully, supply has been limited, big investors bought in.
It will matter a lot to.
These employees as well as these investors.
The corner stone investors are important. But the IPO is a test of how much risk appetite there is out there for high muslciple software stock. You hear that the words of the Street, Will Street, is the risk appetite there.
What's interesting is we're gonna want Instacart and Klavio post not too long from now the first set of earnings reports. Those will be very important landmarks for these companies because, as we've been talking about, there are really only a few more IPOs left this year, perhaps Birkenstocks, perhaps Truro, as you've been talking about Caroline, But it's really in the middle of next year early next year that you're going to see the bulk of these companies try to
go public. Therefore, the results that these companies post and the investor appetite continuing on is important.
Lastly, I would say for the employees, you just go to.
The filings sec filings of Klavio and one of the things you see is the contract, the employment contract for the chief people officer they bought in and the stock options that she gets on the back of this as well. You think about all these companies. This was a company founded in twenty twelve. These companies employees have been locked up for a long time, so these stock listings are just as important for those employees as they are for these.
New cornerstone investors.
As we've been talking about.
Okay, everyone's take a breath, bloodbagtion aali basic, thank you, and as she just knows, you's gonna have to wait a little while for another IPO anyway. Next up, Amazon is launching a revamped Echo Show eight smart home device,
and updated Alexa with finally new generative AI features. That and much more was announced earlier today at Amazon's Product event, its first in person gadget unveiling since the pandemic, and we're delighted to bring in David lim, Senior vice president of Amazon Devices and Services, who's joining us from the company's new campus near Washington, DC. Dave, you and I have done so many interviews over the years, but you did announce that you would retire at the end of
this year. We will get to that first off. That start with this generative AI integration into Alexa. How are you guys going to roll that out over the coming weeks and months because other tech companies have been so conservative about putting generative AI tools into the real world.
Yeah, by the end of the year, we're going to offer a free preview to anybody that has an Alexa endpoint out there and Echo, and we're going to do that in a way that you can get into the experience a couple different ways. We're kind of reinvent doing how we do entertainment on Fire TV, We're doing some things in the smart home, and then we're offering a
let's chat experience that is super conversational. We showed it on stage today and it's remarkable, and I think the big thing we were able to do is actually optimize a large language model and generator AI for the home, which is a very different environment than the tab of your browser.
The emphasis is conversation and real world application. I told our audience on social media that you were coming on and we always take audience questions, Dave. One is a pretty straightforward one. Will Amazon use Alexa devices to listen in the home as part of training of the large language model that powers the generative AI tool. Of course, there is history here about data privacy.
Of course, and you know, one of the things we emphasize today is that privacy is foundational to what we're doing here, and you know, take and so we give. The best way we do here is that we give controls to customers. If you want to delete all your utterances, there's a single button that will delete your entire history. If you want to delete your smart home history, there's a single button that allows you to delete that whole history.
If you want a more personalized scenario and more personalized types of things so that it recognizes you and personalizes the stuff to your screen, then we do use that information to train the model.
But if a.
Customer doesn't want it to be personalized, they want a more generic version of Alexa, that's fine too, and we give them that control.
I need it not to listen to my children, David.
Meanwhile, I'm listening and to some of the news have been unveiled, and not only about new AI generator AI within Alexa and some of the new Echo show eight but a billion Alexa devices have been purchased. Can you just break down exactly what you mean by those one billion what kind of device is where how.
When Yeah, we're talking about the number of devices connected to Alexa and that's approaching a billion, that's getting very very close. A bunch of those are echos. There are a bunch of third party devices as well that have Echo and Alexa inside of it, things like you know, BMW vehicles and so no smart speakers. And then there's over four hundred million smart home devices you know that have been connected to and so we're really seeing kind of a continued momentum, you know, and kind of lapping
the pandemic. But we're still seeing this growth in engagement and growth in how people are using Alexa.
I mean when you first launched the first device, the Kindle, just the amount of change that has gone on since then, and indeed the way that we want to stay informed we have become a way of the way our data is used and some of the regulatory environment, David, when you're launching new products that integrate very cutting edge technology, how are you thinking about the way in which regulation is going to be changing into that unveiling.
Yeah, obviously we have to take into account laws. We're never going to build products and services that are going to break the laws. But when it comes to AI, the most important certain things. We build an AI that's responsible, that's safe, and that is trusted by customers, you know. And so what we've done, I think that's even more true when you're going to put this AI into your home in the form of Alexa versus if you were putting in you know, on your personal computer or elsewhere.
And so we're doing a lot to build guardrails around our AI to make sure that it is as responsible as we know how to make it. And because we're interconnecting it to your home, we're also doing a lot to try to reduce this idea of hallucination. You know what, the last thing you want is for you or your kids to say, turn on the living room light and all of a sudden it turns on the garage door light. That assistant is not going to be used after a
little bit longer. So we're we're spending a lot of time there as well.
Dave. You know, I've lived in the United States for almost six years now. I've enjoyed these interviews with you talking about hardware and its role in the Alexa ecosystem. Bloomberg's reported that panos Pan a left Microsoft, where he led hardware and is joining Amazon. Are you able to confirm that's who's replacing you in any of your retirement plans by the end of the year.
We don't have anything to share on that. Besides, it is true that by the end of the year, I will be retiring from Amazon.
That I can confirm, okay, well, and you won't stay in technology. There's no Dave Limp startup on the horizon.
I think the thing that I wrote it to the team is so I can certainly tell you. You know, I've been doing some version of this job for thirty years. I came straight out of undergraduate college. I went to Apple. I had such a good time there. I then went to Palm in other places, and so I think I do have another chapter in my life. It's just not going to be consumer electronics.
But beyond that. I just asked you to stay tuned.
Maybe venture calls you're as your capital just before this role. David, great to have some time with you. Thank you, David.
Then for the time, Yeah, of course, Senior vice president of Amazon Devices and Services.
Meanwhile, we want to dip back into what the IPO is up to.
It's been such a busy couple of days when it comes to Nasak yesterday with Instagrat today it's New York Stock exchanges.
Time to shine.
We're seeing ultimately another pot Clavio going higher and now not as highs it have been indicated over all, certainly a notable twenty five percent increase. They are managing to plan these IPOs to the nth degree and.
The first SaaS or enterprise or software name in two years and they trade at higher multiple. We have the fed later today, but we love an IPO. Shnilie Bassett laments that there won't be another one until Birkenstock, but it's been an amazing week.
And just thinking it's not just about Birkenstock and retail. There's going to be so many other technology companies in the background. Remember speaking to Karen snow Over at Nazdek saying that there's aout one hundred and fifty seven companies that have filed, many of them technology as their root cause.
So if the windows genuinely opened, we'll find out.
We'll see.
Well, for now, it looks as though we've got a surgeon training stick with us that does it.
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