From the heart where Innovation of Money and Power colle in Silicon Valley, NBN. This is Bloomberg Technology with Caroline Hyde and Ed Ludlow.
I'm Caroline Hyde at Bloomberg's world headquarters in New.
York and I'm Ed Ludlow live from San Francisco in APEC.
This is Bloomberg Technology.
Coming up, World leaders.
They just send on San Francisco for the Asia Pacific Economic Corporation Summit. Full coverage from Ed ahead as we sit down with the Mayor of San Francisco, London Breed, and we'll hone in on the battle for artificial intelligence dominance as.
The world's most valuable chip maker unveil's new processes to maintain its edge.
Plus, we'll break down the numbers from the world's largest online shopping event, China Singles Day, and push ahead to Eco mus numbers from the like Sir, Walmart and Target coming later this week in the US.
But first we're going to be keeping a close.
Eye on what's happening in China US relationship more broadly from a global context, and we're going to be talking, of course about the key leaders that are descending on San Francisco overall, I'm going to be hearing that from the world of San Francisco, and we do want to welcome Ed.
Inesf Welcome to our Bloomberg television and radio audiences worldwide. San Francisco this week hosts APEC. We're joined by San Francisco's Mayor London Breed.
Mayor Breed, thank you for your time this morning.
Of course, Look, there's one question that everyone has. Why has it taken the visit of US President Biden, China's President, zy leaders from around the world for action on all of the problems that this city has been talking about for four years now.
Well, just to be clear, we have been working on this now for a few years. This is not an issue that we've been sinning around waiting to solve. It's been something that San Francisco continues to work on. And since I've been mayor since twenty eighteen, we've helped over ten thousand people exit homelessness and we've never even had ten thousand people on our streets. We've seen a reduction when other Bay Area cities saw an increase, and so
this is a problem that we continuously worked on. This year, Fortunately, we've gotten additional resources from the state and the federal government that has really made a tremendous difference around the challenges that we're dealing with.
A question from our audience that was submitted when they heard you were coming on the program is were people moved temporarily because of the events of this week from specific blocks and neighborhoods to others or was this a permanent action that was taken for what we see on the streets outside.
Well, it was an effort that took place. As you know, we had a court case where it limited our ability to move people off the streets. We still have a few hundred beds available and our street outreach team is out there every day. And after we got clarity from the Ninth Circuit Court of Appeal, people who are offered shelter are no longer involuntarily homeless, so we are able to move them into housing and too treatment, into support, and so we have been very aggressive once we had
that clarity to get people off the streets. Our goal is always to provide support, to provide compassion, but to not let people linger on our streets, especially when we're offering them an opportunity for housing.
Our hope what we've.
Offered is that they will hold on to what we're making available to them.
May I breed.
The frustration of San Franciscans and the perception of the outside world is this happens every APEC or even with Dreamforce. For a week, the city is cleaned up, it puts its best foot forward.
But when everyone.
Leaves on Friday or at the end of the week, you know what guarantees can you give the city that this is permanent, that the actions the city taken to address the problems we know about will continue.
Well.
Just to be clear, APEC is a very unique event in San Francisco. We haven't had a global event of this magnitude since the United Nations was established, so it's a big deal. And after Dreamforce, things that we've done to keep the streets clean, to deal with the open air drug dealing and using have continued, which is why we're seeing a significant increase in how great the streets look for San Francisco. And also, just so you know,
we have certain concentrated areas where there are challenges. Other major cities in the US have the same problems, but in our neighborhoods and the outskirts of San Francisco, things have been looking up for a very long time.
Welcome to our Bloomberg Television radio audience world while we're speaking with San Francisco mayor London Breed. That's the case, right that these issues are not unique or specific to San Francisco. Indeed, other Californian cities experience them. Why does the world think though, that San Francisco is a problem city and sort of a portion more blame in that sense than to other cities.
Well, San Francisco has always been a larger than live city. People are always surprised to find out that our population isn't even a million people. We represent the entire Bay Area. It's a global city. It's the gateway to the Asia Pacific.
And so what this city is represented in history, whether it's the United Nations in nineteen forty five or the Peace Treaty which Japan in nineteen fifty one, San Francisco continues to be that city that creates those global connections, that is really oversized in terms of its image around the world. And it's one of the most beautiful, iconic
places anywhere. So we're going to always get attention, whether it's good attention, or bad attention depends on what the story represents, and right now APEC all eyes are on the city artificial intelligence. Of the top twenty AI companies in the world, eight are in San Francisco and they are growing rapidly. Autonomous vehicles are being tested here. We're seeing so many new technologies and things that are changing
the world. And even during COVID, we were a leader and we saw one of the lowest death rates anywhere in the country. So San Francisco continues to get a lot of attention in various aspects and that will continue.
And my hope is as.
A result of APEX, people will finally get to see what San Francisco is from their own experience.
The centerpiece of this week for many is President Biden meeting with President g and the expectation is there will be some discussion about fentanyl. If you had the opportunity to speak to President g this week, what would you ask of him in the context of fentanyl.
Well, part of it is just to work with the US and to ensure that the resources that are being sent out of China that come into either the US
or Mexico are cut off to the fullest extent. Possible that we work together in order to ensure that this deadly poison that is killing people in San Francisco in significant numbers and all over the country, that we're able to combat this, to stop it, so that we can continue the relationship, the good relationship that always existed between China and the US around trade, around business growth and development, because right now this is a big part of what
I think is also having an impact on our relationship because it has been so deadly to the people of the United States.
Maverriid, who will you be meeting with this week and what are you hoping to achieve when the weekends.
Well, I'm hoping to meet with a number of the leaders who are coming to San Francisco from the various economies.
I'll be saying Hi. They'll be very brief hellos and meetings and just welcomes to San Francisco, and hopefully an opportunity, you know, not just to talk about the challenges, but to talk about the business opportunities and how San Francisco can be an important part of the economies of these various countries because many of the growth and development around AI and new technologies are being developed right here.
Going into this week, mey Breed, you'd announced jointly with Mark Benioff that Dreamforce will return next year. Has mister Benioff given you any guarantees that Dreamforce will stay in San Francisco beyond twenty twenty four?
Well, right now, next year, Salesforce is committed to hosting Dreamforce in San Francisco. Mark is a San Franciscan, He loves this city and will continue to work very closely with him to ensure next year's success as well as hopefully future Dreamforce success in San Francisco.
AI, it's clearly top of mind for everyone, not just this week, but throughout twenty twenty three here in this city. You know, we've talked about all of the square foot of office space that has been filled by AIAI. You know, dozens of startups have been founded in this city. What action will you take this week to continue that? You know, what initiatives are you trying to put in place to continue the growth that AI seems to be centering in our city.
Well, part of it is San Francisco has never had to work hard for business, for tourism and conventions, and what that means is, you know, we need to change a lot of our codes and things that limit people's ability to do business in San Francisco.
We were always you.
Can only be a bank in the financial district, or you can only have a retail establishment here. And many of the policies that I've already proposed allow for diversifying places like the building we are in now today, so that it's used for more than just office space. It could be used for lab space. You know, we have a three point four vacancy rate for lab space, and so we could use a building like this for that purpose. It should be able to easily convert.
It is zero office mat bored directly involved in those conversations kind of bringing private sector two opportunities that you're aware of in our city.
We definitely are me.
Ikea is a perfect example of a space that's empty that wouldn't have been possible had we not bridged that gap to make it possible for Ikea to go into that space.
So we're doing both.
We're changing policies based on the communities and the people who are property owners to allow for their properties to be used for more than just one use. We're making planning code changes, and we're trying to just make it easier so that the process is not as cumbersome in trying to deliver something different and unique and diverse for San Francisco business may read.
Until very recently, San Francisco was the only city in the world that had two robotaxi companies operating twenty four to seven and charging a fair for driverless rides. Cruise's permit was revoked. I appreciate that's the jurisdiction of the DMV and the CPUC, but if CRUs were able to demonstrate they fixed the issues that the regulators were concerned about, would you support their permit being reinstated.
Well, we actually have three, including Zekes, which is a lot smaller, I.
Know, and way charging fairs to the public.
Yes, And so our hope is that you know, this is really about safety and security and transparency, and my hope is that crews can get things in order in order to be back on the streets of San Francisco. But they really are going to need to build the
trust of the people here in the city. And I know that we don't directly make the decision, but we're still here to work with this technology because we are excited that autonomous vehicles are in San Francisco, are testing in San Francisco, are able to be a new transportation network as a part of San Francisco, but we have to ensure that it's a safe network of transportation as well.
San Francisco Mayor London breed a big week for APEX twenty twenty three.
Thank you so much, Thank you for your time. Back to you.
And a big conversation with you, Ed. We thank you so much for me while coming up the world's most valuable chip maker. But it's upgrading as processor as rivals try to challenge its own AI dominance. All the details around and videos updated H two hundred Next this is Bloomberg Technology if the world's misvaluable ship firm in video and it's upgrading it's all important H one AI processor and an effort to maintain its dominance in the artificial intelligence field.
New model guess what called H two hundred will.
Get the ability to use kind of high bandwidth memory to better cope with the huge data sets needed for developing, for training, for implementing AI. Joining us now and the man behind the story Bloomberg's Ian King.
And it feels as though the Darling of.
AI isn't restling on its laurels. It's ces AMD. It sees Intel and it has to keep on innovating.
No, that's exactly it.
I mean we asked an executive over there exactly that question. Now, is this you covering up you know what the competition and bring to market soon? Then they were like, no, no, no, as soon as we can do something, we do it. We just move forward as quickly as we can on every front. And that's very much their stance, and that's what's kept them ahead so far.
Remind us why they are so far ahead.
Originally, of course, all about gaming, but they've just managed to offer to particularly well the cloud companies, something unique, the data center focus.
I mean it's a mixture of right place, right time and seeing things coming ahead of time. Their technology fundamentally is very good at parallel computing. Parallel computing is the answer to training these artificial intelligence programs. You basically have to bombard them with lots of information, and the ability to do these small calculations in parallel is absolutely central to that. They put the software in place, they put the systems in place, and right now they're the only
real game in town. Despite everybody else's attempts.
I mean, it's funny.
We had what Kai fu Lee talking to Bloomberg TV on the end of last week talking about how he'd stocked up in H one hundreds in a mask.
I mean, unimit.
Anyone really out they're trying to demonstrate their strength in AI by how much of a horde of H one hundreds they had? What about the supply chain of this see and how much we likely to see sort of the backlogs continue.
I mean the company has said, you know that they are taking giant leaps forward in terms of availability of these chips, which which sounds great. But then if you go online and try to buy one, you see a list price of twenty eight grand and not currently available. Then you go and try to get one on the gray market and you see a price of forty thousand dollars and upwards. So that tells its own story. Clearly,
these things are in extremely high demand. Clearly in Video is selling as many as they can possibly make, and until AMD, Intel and anybody else can be in the market with a arrival that can turn people's eyes in a different direction, it's likely to remain the case.
I feel like, we need a whole other conversation about the gray market and how that is evolving.
But in tell us a little bit.
About Ultimately, we were sitting down M Kai fu Lee because there's this issue about sanctions on Chinese, on these US chips being shipped to China, and we know that in Vidia front and center has had to change the chips in which it can send. How much of an issue has that been. I mean, obviously H two hundreds aren't getting over there.
I assume yeah, no, H one.
Hundred didn't get over there either. You'll remember a while ago restrictions were imposed basically a year ago, restrictions were imposed by the US. The time that looked like it was going to be the end for these high level chips in China. What Nvidia did was read the rules really carefully and come up with something that was essentially a workaround. Chinese got their own versions of these chips, not as good, but still pretty good. New rules have
come out which basically block blows off. So now we've seen reports about in Nvidia taking another step to come up with another version that would essentially circumvent these rules.
In King always got the technicalities the movements at play as we looked towards the twenty first as well. They're all important numbers. We thank you so much time now for talking tech. First up, a big Swing animis for Disney's Marvel Universe, the newest film in the franchise. The Marvels managed to generate forty seven million dollars in US and Canadian theater ticket sales this weekend. Look, it's the
lowest opening ever for an MCU film. Much of the blame is sort of being pointed at poor marketing due to the sag Aftra strikes.
Finally ended last week.
Meanwhile, Salesforce is naming Denise Dresser as the new CEO of Slack, and Dresser served as a president of Accelerated Industries over at Salesforce and was previously an executive vice.
President for Enterprise Sales.
Dresser takes the helm at Slack after the previous CEO, that's Lydianne Jones, announced she was leaving to go and take over.
At Bumble plus.
Google sewing five unidentified scammers that allegedly tricked users and installing malware on their devices. But the scammers use social media to encourage users to download a fake version of as ai Chat what barred this fake download later allowed scammers to access user social media accounts. Google is suing for breach contract and trademark infringement. Meanwhile, let's talk about Google and illegal context a little bit more. It is beefed up the quality of its search engine, but only
after it was pressured by the European Union regulators. That's according to the internal documents via the USDOJ, claiming Google's failure to willingly make improvements prouse it's illegally maintaining its monopoly.
This is while Alphabet CEO.
Sonopitchai is about to testify tomorrow in a separate anti trust.
Fight, this time with Epic Games.
As always, there's a lot going on, and we're pleased to welcome Multinaek who joins us now for on all of this, and ultimately let's just talk about Epic Games for a moment, because it's not just alphabets Google that.
They've had issued with the play Store.
They take issue at many an app store, but tell us what they think that they'll get out of Sonopicchui tomorrow.
Multi So Epic it's trying to prove that Google struck these secret deals with Activision and drag games and other competitors to stop them from building their own third party app stores.
And I think they will question.
Pitchai tomorrow and some of these agreements which they've already shown in court, and they'll also try to show that Google tried to strike these deals with OEMs to make sure that the Google Play App Store was prominently featured on Android phones. So that's what they're going to focus on tomorrow, and they're also going to quiz him on some of the business aspects and some.
Of the policies related to the Google App Store.
And Google's lawyers are going to then ask Pitchai to explain why some of these policies are justified.
You know, Google has to strike.
These deals to compete with big competitors like apps like the Apple App Store, as well as ensure that there's security and you know a lot of good features for developers as well as a safe platform for users.
And there they try to vindicate the thirty percent cut that they and well other app stores take from these developers. I'm interested in the nuance of that of how much they think they will be able to land the idea that this isn't paying developers to you know, make okay with a thirty percent cut, but you're paying developers to come and build on the Google Play Store rather than just going to Apple iOS individually.
Of course, they're definitely going to focus on you know, Google's lawyers already have begun arguing that, you know, the thirty percent cut is justified because we're giving developers a platform to reach some of the largest.
Users mobile users in the world.
So in terms of having this platform in the first place and providing all these features and programs for developers to build their businesses on their platform, you know, the thirty percent cuts justified for them to actually be able to invest in this platform, to keep it safe for users, to make sure that it's a good place for developers to come and bill businesses that can thrive.
Just going back to the border context here, I'll say that how out of the ordinary is it for CEOs have to get up to be summoned in this way, to give evidence in this manner.
So we've seen a lot of CEOs this year already.
We've had Elon Musk who's been quite you know, they've been appearing quite quite often in some of these cases. So napitchit's actually going to be his second time in almost two and a half weeks, because just two weeks ago he was in DC testifying in the Google an I trust case related to the dogs claims that Google's ad search business is anti competitive. So you know, here he is again two weeks later, two and a half weeks later, is going to be here tomorrow, you know, testifying.
So I think he's going to slowly get you know, seasoned in terms of being at the witness stand also, but sometimes the CEOs serve as you know, the conscience of the company, so it'd be interesting to see how he defends.
Thank you, mauntin Knak All Things alphabet from New York. This is Luemo Technology. Welcome back to blouemaog Technology. I'm Caroline Hide in New York. Let's get a quick check on the markets as we're basically halfway through a trading day and we're looking at well, I mean flat to lower now and then as that one hundred off by a quarter of a percentage point, just think how far how fast we have managed to rally in the month
of November so far. Of course, appetite back in tech as we potentially see the peak of hiking cycle for the Federal Reserve. All important CPI number inflation data coming tomorrow, So it's a macro context. I look at what's happening in the world of chip makers because in videos on the higher side, but well, nothing else really is and the socks is currently off by more than a percentage
point at the moment. Bitcoin on the downside. Let's have a look at what's happening in Asia, though China in particular. This isn't as that golden dragon, and I shanna like to know because it's called the Internet. Companies that trade here in the US not toab be higher. Now, is this more about the hope that China will be adding some stimulus to the economy. We're worried about a week
consumer there at the moment. Nevertheless, we do see a little bit of appetite and buying on that particular exchange. And this as we have some idiosyncratic news around certain names. Let's just take a light on DD for example, Chinese ride haling leader. It has posted its first profit since two thousand and twenty one, actually sustaining gradual recovery.
Head of a twenty twenty four Hong Kong listing.
The company's revenue actually rose twenty five percent in September quarter, suggesting they get's making some headway in an effort.
To regain market share.
Back in twenty twenty one, regulators launched a probe remember into its data handling and forced it to delist from the.
New York Stock Exchange.
Meanwhile, it's been China's most important shopping festival was held every the weekend.
It's called a Singles Day.
In an annual bargain's extravaganza. Remember Baba really popularized it over about a decade ago. While the event is usually dominated by e commerce platforms Alibabajd, dot Com, Pindo a duo, smaller streaming platforms du in quite shue that they're able to have some breakthrough performances.
It would seem it's got an expert on this.
Jacob Cook, CEO and e commerce consultancy WPIC Marketing and Technologies staying up extremely late for us over there in Asia, we really appreciate it, Jacob, just was the eleventh of eleventh a good day for these sorts of players. Did company the individuals come out and spend more than we anticipated?
Well, they certainly did. At the start of the Shopping Festival.
I think the legacy platforms were seeing sort of low single digit increases, maybe even around the three percent mark. And your team MOLLS and your JDS really, I think what you were saying before really is the big story. Your doin's, your read books, your KAI shows that are really reporting triple digit gains on where they were last year.
You know, overall, probably low double digits in terms of where the shopping festival was last year. That's down from where we were in previous here is but you know, behavior is really changing and how people are shopping online is changing online in China too.
Yeah, articulate how that is.
I mean, we know that a consumer is under stress at the moment in terms of the economics slow down. Are they therefore looking for deals or is it the places they go to shop has changed?
Well, I think both are true.
They certainly are looking for deals, and there was a lot of deals this year. You know, there was intense competition between Team All and JD. But you know, like I said, we have single digit increases in those platforms while they're fighting for market share, and just incredible triple digit increases on more of the live streaming platforms like like Kwaishua and doing it doing it alone, I think was reporting one hundred and twenty percent of over the
last year. Little read Book you have three to four hundred percent. These are huge numbers, and they really, you know, are really showing us how the difference is and and just the way that people are shopping through live streaming now really becoming mainstream.
Okay, So is that the case that people, no matter where they are, are just flicking through their phone, they're on some sort of TikTok like offering and they're getting the offerings in there. Or are people signaling out streamers in particular because it's some sort of entertainment for them. I mean, some of them, they're absolutely incredible at what they do.
It seems.
Yeah, people are pretty loyal to the streamers that they're finding out. Certainly they are out there looking for deals, but you mean, you know a lot of times when they're logging onto these platforms, they don't know or they're not coming there with the pre intended purchase intent. You know, a team all the JD you see a lot of
people like Little Lemon reporting huge numbers. Apple had a great turnout, but with the live streamers they're really going for product recommendations, they're going for great deals, but when they tune into these shows, maybe they didn't know what they were going to buy beforehand. So it's really mean I think when we talk about more bringing products to people as opposed to people to products, and this is really the trend going forward, and we just see this
continuing on. There's really no end in sight unless the other platforms really do, you know, make a play it here, but this is it's just huge. It's a huge trend and we're seeing in other parts of Asia as well.
Tell us a little bit about where the money flows here. I mean, there's a great story on the terminal today all about the top China live streamer. He's known as Lipstick King because he's really could and cosmetics as well, it would seem, but actually his own numbers, they're coming from third parties like Southern Metropolis Daily is reporting around his own numbers having gone down a lot from this time last year.
How is he making money? How are the.
Companies that are selling through him making money? And actually is he not doing as well as he was in previous times?
Well that's a big question. I mean, certainly he's making a lot of money.
I mean, when we go back to the tax of aation cases that we had a couple of years ago, the debated taxes that were made public were in the hundreds of millions of US dollars, which if you extrapolate back, means their income is in the billions of US dollars. Yeah, certainly people are. The one thing with cosmetics is it's the repeat purchase. So Brandon link to lose money and to be able to go on his show at extreme discounts, maybe even sell below costs in the hopeful that people
will come back and buy that product again. You know that doesn't work for large durables or.
Things like that.
But you know, there's just a ton more lier streamers out there, and even men now are tuning into these shows where it was primarily, you know, a really female dominated demographic before. So yes, the live streamers are making a ton of money, and the platforms are making a ton of money.
The brands not so much.
But it still is a great way to reach millions of consumers in fifteen minutes.
Set in the US sun.
In the UK and Western economies, people are very offai with following influencers and starting to see more ads or understanding when they're getting product placement. But ultimately, with this style of shopping ever translate, do you think.
Well, I think what the TikTok numbers that are being reported so far, we've seen numbers out of Malaysia, out of Great Britain, and that it is catching on. So yes, we do expect it to catch on in other parts. You know, it's not a lot different than you know, what we'd have seen with QBC a while ago. It's a little bit different than say just a normal influencer and the fact that you have an audience that is
coming in to buy. We know that they're there to shop, they're usually in your right demographic, whereas maybe when you're talking about an influencer, you're there, you know, kind of surfing and you're influenced about a product. But the live stream model is really of more direct sale. And yes, we absolutely expect this to catch on at other markets.
Jacob Cook staying up what past one am?
I think it with you? Absolutely brilliant, Thank you wpic. We appreciate the context. Meanwhile, later this week we're going to be getting a glimpse into how much consumers have rained in potentially their discretionary spending here in the United States too, Walmart Target reporting earnings to mention but a few as a vital holiday season approaching. Of course, Jennifer Bartushas is with us of Bloomberg Intelligence, and are we likely to see what we're just hearing about in China?
The fact that discount isn't doing well at the moment, company is able to shift product if they've got the right price point. Is that what's going to happen here in the US as well?
Yeah, I think with it is definitely what we're going to see as we go through third quarter earnings. There is a flight to value in the United States, and the consumer is shopping the channels where they feel that they can get a good value. So we think that discount stores, some of the off price stores are poised to do well this quarter just because of that's where the consumer's headed.
So look out for rostors, look out for TJX. Ultimately, what is the sort of mix of in store. I mean, I think of a TJX, and I think of going there in person and rifling through very close courted clothes that you.
Can hardly see.
But I'm interested as to whether or not people are doing that online more and more.
Is that more of a Walmart Target play?
Well, when you're talking about the off price stores, it really still is a hunted discovery type of environment, so people are still going into those stores to search for value. When you're talking about the discount stores like a Walmart or a Target, it's more of a combination of both
online and in store shopping. And when we look at traffic of visits into the discount stores, although across all of retail traffic is down year over year, it is up to the discounters, and that's based on placer AI data, So that gives a little confidence that these people who play in the value space are attracting those customers.
It's interesting we're just looking at interday moves. May sees off by some three percent.
Of course, own Bloomingdale's owner of Blue Mercury, some often a more high end luxury kind of a purchase that's going on even at the Macy stores as well. But they've had a big focus on investing in online in marketplace offerings in AI. Is that going to be something we hear from everyone, this whole focus on data or AI.
Well, I think that across retail. You know, there is a lot of investment that happens with regards to the omnichannel experience. Consumers now really want to have a flawless experience, whether they're in person or whether they're shopping online, and so that is an area where investment is likely to continue, just because it really is about meeting customers where their interest is and where the demand is. And that's really
not retailer specific. That's really happening across the entire industry.
It's going to be a busy week for you, Jennifer Buttash. Just thank you so much for walking us through ahead of all those retail earnings from Blue Bag Intelligence.
Meanwhile, coming up, global.
Crypto venture funding, well, funny enough, is down, in fact, as we hit a low that we haven't seen since.
About twenty twenty.
We're going to talk about it all with the latest data from Pitchbook.
That's next. There's Bluemotechnology.
Global crypto adventure funding, Well, it's hit a recent low amid of course the unwinding of Tara Luna, the collapse of FTX.
There we mention what else was happening last year.
According to new data from Pitchbook, crypto venture funding fell by sixty three percent year of a year to just two billion dollars in the third quarter's according to Pitchbook cryptoanalyst Robert Lane where pleased to welcome him.
To the show.
And I mean, perhaps unsurprising with the fallout that VC appetite has remained low.
But vcs are sitting on a whole ton of cash, some of them, I.
Think of a sixteen Z in particular when it comes to crypto. Why aren't they putting money to work in some of the projects?
Yeah, well, thanks for having me here again, Caroline. Well, first of all, this is not really a symptom specifically in cryptos more of the broader venture markets. So you know, we track investments across entire adventure ecosystem and is down for Q three as well, so you're seeing that this same thing. So what you're seeing in the crypto space
is basically what adventure investors are doing. They're taking the time to talk to founders, they're taking the time to understand what the business models are, how they're operating, and then they're going to slowly deploy capital. You know, we talked about this last time. It's just the pace of investing in the process of investing has been much much slower.
I think we're crypto, but what the unique aspect is there still regulations that they have to think about, right, and then it's really nason all the technologies that it's being built.
It's very nascent.
So I think that is part of the slow down too, specifically in crypto, it's those two things.
Let's talk about some of the regulatory questions because actually many I'm sure who will gather around their Thanksgiving table this month, will say they had some big wins when it came to the SEC sort of unable to enforce the way in which they thought they were, the fact that they lost against initially against the gray scale and I'm going to have been turning into an ETF. They seems that they've dropped their issues with Ripple in particular.
Does that spell that the SEC isn't going to have as many teeth?
Yeah, Honestly, we think what's going to happen is that the SEC is gonna l approve some of the things are happening in the space. So first we think the spot bitcoin ETF is going to get approved in the next few months. And now we just saw last week, black Rock is applying for U spot E ETF as well, ETF as well. So we think those things are going to help the crypto space because it's going to increase
the liquidity in the spaces. I think right now we're in a liquidity constrained market, so a lot of the products don't really work well. Lending markets, credit markets are not working as well, especially in the defied space because
of the lack of liquidity. We think that you know, as that secs kind of have to force to play a hand to really look at these products, and if they do reject, they have to give a really good reason, and right now we haven't heard any good reason that the season gift for not having any of these exchange
traded products on the market. They're already allowed a bitcoin exchange features on the market, and so you know, you look at what black Rock is arguing in their following is that, look, these things are going to be correlated to the spot markets no matter what their price. The features products their price to the spot market, right and in the surveillance is the same way that that black Ross can do the surveillance as well with nastating coin
base and all these other exchanges. So we think it's going to happen, but there's get the approval, and it's really going to be a great benefit for the crypto markets.
I mean, Larry thinks U turn I'm going to call it has not been lost on many And the fact that ultimately I'm sure is about face on the infrastructure behind crypto is probably in large part because his clients want it. Now talk to us about whether that institutional demand is really there, because that's what you hear a lot from the crypto space, But then we're just trying to see the data.
Basically, we do think it's there, and I think that is why all these asset managers are getting into it. And it's also you don't want to be the asset manager that didn't spend the investment, the time, and the resources to offer crypto service to your clients. And if a bull market returns and then you're not offering those services, your clients are going to go to another asset manager.
So you know, we've estimated that just on the bitcoin side, for the ETF it's roughly between fifty to eighty billion dollars of demand for a spot in ETF so and I think that you know that's going to continue to increase as well. So there definitely is a lot of demand. It's not just custoding and holding asset and being able
to buy it in a regulated way. You know, there's all these other service trade services, prime brokerage, you know, the opportunity for asset managers and banks to offer like an in a wedge for their clients to get access to it. But then even think about eth eth is pretty complicated because if you offer an eth ETF that's staking, right, that's involved. So how does that work for clients and how do they measure their returns on that and all that? So there is a lot of client demand very quickly.
Where does the money get apportioned to the startups or to bitcoin and eath?
Oh, that's a that's a difficult question.
I think it's it's different because venture investors are the one that is investing in the startups. They're not really buying ETH and bitcoin maybe a little bit or maybe like through through like foundations and stuff that they invest in, But for the most part, we think that, like you said at the beginning of the segments, that a lot of dry powder in the crypto space exists you know, you know a sixteen Z they have the four fo point five billion dollar fund. That is still a good
amount of capital left in that fund. And there's these other funds that they're raised. That's the fourth crypto fund by the way, so all of that capital is kind of goes to the startups. And then I think on the for bitcoin and eth, you're going to see more of the traditional asset managers and all that investors that would would buy into bitcoin and eth and some of the more strong alternative tokens.
Not lost the numbers this quarter, but maybe a bit of optimism in the future. Pitchbook analyst, we love having Robert Lay, thank you very much. Indeed, let's just hone in on the digital health landscape and parents.
This is one for you.
Pediatric telehealth startup Summer Health is unveiling a new platform, everyday care.
For twenty dollars a month.
Parents will have twenty four to seven access to their own personalized team of providers in the same way that look you would text your family of friends for a photo, for a video, basically for an update and whether you think your kids sick or not. And then to Silver Summer Health CEO and founders with us to tell us why there is this demand at the moment, what particularly is at breaking point that means that parents need an ability to have telehealth far Moisily.
Yeah, Carolyn, thanks so much for having me on today. The average American child sees their pediatrician for seven minutes per year, so imagine how much can you really get done in seven minutes. We have discovered that by having always on care through summer Health's new everyday care platform, we can offer that primary care around the clock. So today summer Health is expanding beyond just urgent care those episodic needs to actually assigning a provider to your account for everyday care needs.
I'm trying to get to grips with how you make the money, because twenty dollars is well, really well the reasonable when you think about the cost of healthcare. So I'm trying to understand where do you get the revenue streams from. How are people, of course that you're bringing onto your telehealth to offer their services, how.
Are they getting the money as well?
Yeah, so summer Health is a subscription service.
It's twenty dollars per month or one hundred and ninety two dollars per year. Many of our customers actually pay that annual plan and it's basically the cost of a copey. We have the most high quality providers on the platform because we have developed our own proprietary back end for our providers.
We've actually leaned into AI quite a bit.
To give the doctors at their fingertips the most simple to use and easy to access resource to give parents the most personalized solution.
You're backed by maybe some heavyweights in the world of VC Secoya, Lux Capital, Books Group individuals as well. Where are they thinking that you're a solution that just isn't being offered elsewhere?
Yeah, well, I have yet to see a telemedicine platform that really leans into continuous care. We hear the clamor growing louder, especially from parents, but certainly from Americans all over the country that they're looking for a physician to really get to know them, get to know their family, get to know their family's needs. What Summer Health has been able to do is develop that kind of always on care by being there continuously and forging a relationship
by assigning a provider to your account. What we see other telemedicine platforms do is basically you can sort of parachute in for that one off moment and step out and they don't really get to know you.
So that's where we're moving.
It's interesting that I was there trying to get an appointment for my son from an air issue on the Friday, because I knew I had to go in to see someone and there wasn't a single doctor available in the whole of the county.
I'm interested as to how do you solve for that element.
At the end of the day, a lot of these things a doctor just has to have a look.
Yeah, we've actually been pleasantly surprised by how much we can do via telemedicine. A lot can be done with a recorded video or a photo that we can treat our providers. If you have a respiratory issue, for example, snap a video and our doctors can hear that cough over and over again. Our providers actually think it's better than some of the video chat care because they can
see it time and time again. We also have the benefit of working with a great pharmacy provider so that we can locate medicine that's out of stock for you and let you know when that medicine is available for your family, So you're not waiting for an hour in the pharmacy for that medication.
Boy, I feel that I'm interested in and just ultimately the mon We just talked about the vcs that are back you. Are you needing to raise more funds? How is that ongoing conversation? I'm sure every founder out there is having it. But have you managed to get some sort of runway?
Yeah?
So we're very grateful to be backed by Sequoy Capital, Lux, Chelsea Clinton's Metrodora and other amazing vcs who have supported.
Us through this journey. We're growing rapidly.
We hope other parents will come join us, and that thankfully has been fueling our growth. So we're in a great position right now.
A'man great to have some time with you, and for every parent out there, we feel you. When it comes to perhaps the current illnesses that are floating around and Indo Silver, we thank our Summer Health CEO and founder. I mean, well, look, that does it for this edition of Bluemou Technology. You do not want to forget to check out our podcast. You'll find it on the terminal as well as online on Apple, Spotify and iHeart from New York and of course back where the Asia Pacific event is happening.
Over in San Francisco where it is. This is Bluemo technology