A lot of cross disciplinary sharing of ideals coming out today. We will be speeding up drones. The kitchen thing is interesting. There has been a lot of cooking, and he is using social media to grow his business and share his message of food. We will talk about how he does that while a cook up in the kitchen. The fusion of technology and culture, talking about the genesis of beats. There was a very heated debate about any quality. I spoke at length with the head of social capital partnership. Ron conway stood up to challenge him and challenge some of the things he said. I do want to get to the news of the day. Marcus leaving paypal to lead the messaging app. He seemed like the heir apparent. Paypal has never done better than it has been doing lately. It is growing much faster than the rest of the ebay, even though they are investing so much into it. It is shocking to see him leave that company. But the guy is well respected in silicon valley. It is a testament to Mark Zuckerberg in his ability to recruit some of the best talent. He had a quite heartfelt post in leaving. It is interesting, he will not be leaving whatsapp, that is completely separate. They have 200 million monthly users, 12 billion messages shared every day. The numbers are enviable for any startup. I was on with trish regan when the news broke, and she was talking about carl icahns take that the company should be split. With the faster growth of paypal, they might have had evaluation, but also much greater reward for the people that worked there. Carl icahn made the point that by being part of ebay, it does not get the best and the brightest because that big Lottery Ticket the Stock Options is not as lucrative. And now david is going to a company that has the kind of growth we have seen out of facebook. I wonder if this is a big loss for paypal. Should paypal be a separate company . A lot of the paypal mafia believe it should be. One of the things that david said in his facebook post, theres also a link on linkedin, he says that the team was so deep that paypal that not only was it a ton of people working there but the manager team was so strong that he thought this was a good time to leave. We will be watching to see what he does at facebook, personally recruited by Mark Zuckerberg. We want to talk about that inequality story. A lot of people have been talking about what is the solution . That is what i started off asking about. He is an interesting thoughts about more Systemic Solutions to the problem, trying to fix the political system. Bigger picture kind of solutions. Ron conway stood up and told him he was wrong. Take a listen. I live in the city of San Francisco, you live in palo alto. You said the city of San Francisco [indiscernible] that is false. The city of San Francisco is tenant approved. You ridiculed how dare you put out a mandate for 30,000 new housing units. All i was talking about is that you can create very simple economic measures to fund all of that and more. That is all. Then you said you recommended one percent of the equity. Test a choice. If you want to be in the city went back you ridiculed ron. Ron. Listen to this. If you wanted to be in the city, there are all of these people in the city right now that are really frustrated. All you see it with the riots. All im saying is [indiscernible] all i am saying is there is a ton of people that feel like they are getting push out of subsidized housing, that feel like having a mandate in every city [indiscernible] i think you have to see the followthrough. All im saying you can find Economic Framework to solve these problems. You could provide another kind of tax that says this is a subsidized housing tax, and we want a piece of your equity. And the company can choose to not be there. But if that comes home, imagine more units that could build. Imagine how much Free Education they could get. This is about making what they are doing an order of magnitude more impactful. That is all i was saying. Last point you ridiculed them for not being generous. You dont know what youre talking about. They could have taxed them 10 million and they would have paid. And Angel Investor ron conway said the mayor should resign. It took significant offense to some of the things he was a major fundraiser for the mayor as well so he is all in. This notion of technologies role in changing the way that the city behind us is shaping up and changing cannot be underestimated. We see that happening throughout the city. It is certainly a debate that is very important. Very much far from over. We were talking about it following that interchange, and somebody said perhaps the solution has been piecemeal, but what he is saying is systemic and harder to accomplish. Someone else came up to me and said ron conway is ron conflict. Coming up, we will be bringing tech into the kitchen. Welcome back to bloomberg west. Were live at the next big thing. Were not just talking about technology, were talking about the fusion of technology and cooking. Social media and cooking. Cory johnson went to the kitchen. I am here with the chef at two great restaurants. Coconut is of note because it has been nominated for the James Beard Award of the best new restaurant. Social media is so important. They want to know what is going on our everyday life, so as we are building this restaurant, we have 3000 twitter followers and thousands and thousands on instagram. They can watch us work on the dish and watch it from here to the menu. Is the food what really draws social media . My daughter is part of it, but the food is the most important thing. You can batter this shrimp, and the social media folks like to know how you take something that everybody understands and present it in a new way. This is new technology. What is in the batter . Chickpea vodka, it burns off in the cooking. And our customers really want to see how we take this and how does it work at home . People get freaked out about technology. People who work in the kitchen love to buy new stuff. If you look at the volume we have added, we are able to lighten this up. Someone on social media might be tweeting this in real time, and have a chance to learn with us. Your instagram followers are also huge. Hot olive oil, try not to burn yourself if possible. This turns into i always dress like this when i cook. That goes in the oil and we are able to cook this today and have the recipe up on the website. We will pair a wine with this. We will show the technique with what we are doing, and then they are talking about what would we drink with this . The social media chatting with the others out there to you find other people coming in the restaurant who have now come because they saw it on twitter . They have been following along, they saved up for an anniversary . You establish a relationship with them. I seldom do any personal things. But my daughters birthday party, it blew up, it was something we might not normally do. Are fish is about done. We will finish and eat this. I think it is very interesting that social media helped you to get the attention that last year. I will put the recipe is on social media. Follow us on barn raiser for social good. We are going to eat. Back to you. That is so not fair. Coming up, we are talking to max levchin. He will tell us about his next big thing. Welcome back to bloomberg west. A firm launched by max levchin has announced 35 million in funding today. What is it actually and how will they use this money . You have been in stealth for the past couple of years. The longterm plan is to revolutionize paying for purchase at the online point of sale, and splitting them into several installments. If you do not trust your credit card, if you kind of know but can calculate that it is too high, he can make it simple for you. We can split it into payments, and make it transparent and honest. You already have partnerships with retailers. Do i have to fill out applications . You fill in just a couple of recent information that basic pieces of information. In less than a second we can tell you we will take the risk and we will stand behind the transaction. No complicated approval, no access to this store and filling out a credit card application. You have to get the payment to the place, but the other challenge is understanding the credit risk. The latter is far more important. We are fundamentally changing the way risk pricing and risk underwriting happens. Were looking at new kinds of data. We think of ourselves as what they should be if they were invented in the last couple of years. What makes you comfortable taking on the risk . A fair number of the team come from the old risk Underwriting Team at paypal, although most of us are the young acolytes of the finance sector. This is actually a result of the old paypal risk team, you were brainstorming and came upon this. We asked ourselves if we dont really deep and did not put a veneer over the old rails and went to the core of the Banking Structure in the way that payments go through the Banking Structure. We were looking at the banking world, why has not someone taken this on and the answer was they did not have to. Give us a piece of data that you use. We look at what he knew buying, where are you buying, and what the cost is. And based on that information, what the risk is. Give me an item that would define risk in your profile. A mattress is a classic thing that someone who graduated college has to buy. It is just enough of a debt in the cash flow that they have to decide whether or not to put it on the credit card or to suck it up and sleep on the floor. You decided to basically work fulltime on this. You are looking for someone else, but youd decided im a glutton for punishment. Two things happened. They were still be intellectual outlet of my many different curiosity projects. I loved running a company, theres something thrilling about coming into a company with goals and kpis. Key performance indicators. It is all about the team. We have an Amazing Group of people that i worked with at paypal and a bunch of really brilliant young people that are now motivated by the center of this attempt to bring back trust, honesty and transparency in banking and finance. We are our own customers. Do not go anywhere. We will get max levchins take on wearables. Plus, it has been dubbed the World Toughest drone. Is it really . You are watching a special edition of bloomberg west, where we cover innovation, technology, and the future of business. We are live from cobol point in sausalito for bloombergs next big thing summit and we are talking right now about health care and innovation in health and fitness tracking devices. Joining me is our editor at large, cory johnson. I am well trackable. Im wondering if mr. Dyson beat you . He joins us now along with max levchin. Can you explain what you are wearing on your wrist . Im focused on health to avoid health care. This is the nike band. Im not wearing my heart rate monitor today. The nike band will be discontinued, but the business lives on. The shine from misfit wearables which max is involved with. You can wear it while you are swimming which is why i like it. Finally, this is the basis which says low memory. Is that your memory . Im doing so much stuff. It is owned by intel. How does it help you . It helps me be a better investor. Im already a fitness nut. How much difference do they make . The top then doesnt need it, the bottom and wont use them. If you are an Insurance Company, can you improve health so that its a large enough population that it matters . Max, you are an avid cyclist. I know you have experimented. I think my lack of Wearables Today is a message, but i did not plan it this morning. To impact the middle, you had to go from active tracking to passive tracking. I dont have to remember to put a parameter into my bike because its built into the crank. So i have a perfect record of how hard i peddled with a microsecond resolution. The companies can start pricing it correctly and start sending people in before we have a heart attack all stop that is after our bath mats start out telling us what our wait is doing in the mirror in the bathroom starts telling us what is pumping in our eyes. Is it the biggest pot of money with the dumbest price and burials . Its the biggest with the interest of eating healthy. The challenges of you ask an Insurance Company what is your estimated average lifetime as your customer, they do not want to tell you because that is their actuarial secret. But if you can keep these people but if you can keep these people for a long time, you benefit from them being healthy because you dont need to provide health care. Is having your life measured and tracked a good thing . I think so, so long as you have control of your data. Fundamentally, the tradeoff is correction and prevention. Frankly, i dont mind someone, let alone my computer, know what my weight is doing if its going to keep me healthy. The things that people share and dont share, thats one of the most interesting things will stop i will share my data with some people. My sleep date i will share with fewer people because that is more intimate. Going back to is a good to be tracked we track our cars, we track our equipment, why not track our bodies . If you look at sustainability longterm, we are looking at the environment, it matters a lot more. Some people care about price, the other people care about am i going to get fired. You have less sympathy for that, maybe your premiums should rise if you cost society a lot more. The stuff you do voluntarily, not are you likely to get some disease. Apple just rolled out is there one company that can make it more mainstream or will it come from outside . The most exciting stuff is going to come from startups. We are able to take more crazy risks. We have no brand to lose. Innovation nationally happens in small chunks. The companys step into the market legitimize it. They put the stamp on the market by saying we will be behind these efforts. How optimistic are you about an apple iwatch . I think it will be beautiful. I dont really care. I care that it happens and i think its going to be a startup weve never heard of on one hand, but what we need is longterm money. Our longterm interests at heart, our employers and even we dont think longterm. One interesting phenomenon we are exploring is if you order your groceries online, you buy more healthier food. That old saying dont go shopping when you are hungry is really true. How do you spread this . Its not just what you do. That concept, the fundamental driver is not going to be an individual, for me, ive always found my best times in my life when im training the hardest is when it is measured, but i dont know if im peculiar or if its just me. You are talking about it effort marketplace. You are talking about a different Business Model let things longterm on how to keep things healthy. Do you have to make that happen . Im making it happen and i have a startup thats not for profit. What are the most exciting things you are invested in right now . 23 and me is one. There have been huge issues with the fda. Is it going to get beyond the red tape . Yes. I have no problem with regulation. We want to keep out people and snake oil. On the basis of your genome that says you should do x and y. We did not provide the fta with all the data they wanted and we are in the process of doing that. That will be sorted out and over time, theres the broad environmental stuff like that food you can buy. I have a relatively prolific portfolio and am a huge fan of misfit will stop thank you for remodeling. On the device side, the Software Side theres a product out of new york which is a really cool way of making the data around dna and other things more accessible. It is going to be revolutionary. The biggest problem in the health world at this point is not lack of information, it is lack of accessibility and control. Health is just getting into the company. Theres another Company Called human api which is a different approach to higherlevel eta, human records, im an investor in that and im very proud of that decision. I was at one point an investor in a couple of diets companies, but they have not panned out. It feels like in terms of timing that we are very close to this becoming more mainstream. I would not say it is mainstream now, but it seems like we are close to greater accessibility. When you have the baby, you use low to get your baby. I dont mean to to my own corn, but the most important investment is low which helped you have a baby naturally. Then you monitor what your baby is eating and how you change the diapers. That is changing behavior. It is fascinating. Thank you both so much for joining us. We will be speaking with you a bit later in the show. Coming up, we will talk about the private space race. Plus, Companies Like amazon are looking to use drones for delivery. We are going to play a game of drones coming up. Welcome back to a special edition of bloomberg west at the next big thing summit. You know elon musk and spacex, Richard Branson and virgin galactic, but there are a lot of layers in the commercial space trade. Whack with us now is esther dyson, the chairman of adventurer holding. Shes an investor in x core aerospace and is even a trained cosmonaut will stop she spent several months training in russia. I wonder, elon musk and Richard Branson dont have cosmonaut on their resume. You have an edge on them. You know exactly what its going to be like. How does that help you as a space investor . It makes it more real. A lot of people think of space is being exotic and intangible. My dad was actually a physicist and still lives and astronomer. For me, i took it for granted as a kid and i take it for granted as far as what you actually learn and cosmonaut training. Its very basic. It is space plumbing. How do you fix the air exchanger . Space medicine what happens to your body . How do you keep the oxygen level appropriate . Have you been to space . No. I have been weightless seven or eight times and i will probably go up sometime most likely next year. As an investor and board member, i get to do the last flight before we go commercial. Tell us what x core is. It was started in a guy named jeff grayson from intel. He is very concrete stop space is actually building a spacecraft that works. We are competing in the suborbital spacefli