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1
00:00:18,200 --> 00:00:20,407
Ooh, fuck. Yeah, it doesn't matter.
2
00:00:20,480 --> 00:00:22,244
Whoa. You okay there, Richard?
3
00:00:22,360 --> 00:00:24,203
Uh... Yeah, I'm fine.
4
00:00:24,280 --> 00:00:26,009
Sorry, I can't really throw it any slower.
5
00:00:26,080 --> 00:00:27,320
Give it another cut, Richard.
6
00:00:27,400 --> 00:00:29,164
No, I'm fine. I don't want to.
7
00:00:29,240 --> 00:00:32,130
Maybe someone else wants to. Who's next?
8
00:00:32,200 --> 00:00:34,885
If someone has to go, I'll go,
but it seems very frightening.
9
00:00:34,960 --> 00:00:36,689
You sure? You got us for the whole hour.
10
00:00:36,760 --> 00:00:40,128
- Anyone?
- Would it hurt your feelings if no one went?
11
00:00:42,720 --> 00:00:44,006
Ladies and gentlemen,
12
00:00:44,080 --> 00:00:47,050
welcome to the annual
Stern Taylor Fall Classic.
13
00:00:47,120 --> 00:00:50,010
I'd like to start by making a toast
to our very special guest tonight,
14
00:00:50,080 --> 00:00:52,731
Richard Hendricks.
15
00:00:52,800 --> 00:00:57,567
Richard, after your perfect game
at TechCrunch Disrupt a few weeks ago,
16
00:00:57,640 --> 00:00:59,404
we fell in love with you and your tech.
17
00:00:59,520 --> 00:01:01,648
Look, we know everyone
in the Valley is after you,
18
00:01:02,280 --> 00:01:06,251
and we know that you're probably
going to go with Peter Gregory,
19
00:01:06,320 --> 00:01:08,891
but we'd love to have you
come play on our team.
20
00:01:08,960 --> 00:01:10,962
Let Stern Taylor Capital Fund in
21
00:01:11,040 --> 00:01:14,328
on your Series A financing,
because together, Richard,
22
00:01:14,400 --> 00:01:15,890
we'd be
23
00:01:15,960 --> 00:01:19,169
a home run!
24
00:01:19,240 --> 00:01:21,971
{APPLAUSE
25
00:01:22,120 --> 00:01:23,849
- Oh, fight.
- What do you say, Richard?
26
00:01:26,600 --> 00:01:28,125
I'll do what I can.
27
00:01:29,760 --> 00:01:31,524
All right. Have fun, everybody.
28
00:01:34,520 --> 00:01:35,521
I don't know, man.
29
00:01:35,600 --> 00:01:38,046
It's starting to feel weird
letting all these firms suck up to us,
30
00:01:38,160 --> 00:01:39,924
even though we're not gonna
take their money.
31
00:01:40,000 --> 00:01:43,607
Richard, Peter Gregory hasn't officially
given us the term sheet yet.
32
00:01:43,680 --> 00:01:45,762
Yes, but he will tomorrow
when he gets back.
33
00:01:45,840 --> 00:01:49,765
If you can't enjoy this many people
kissing our ass at this level,
34
00:01:49,880 --> 00:01:51,006
then I feel sorry for you.
35
00:01:51,880 --> 00:01:54,531
Would you just relax
and take it in for a second?
36
00:01:54,600 --> 00:01:58,207
I mean, we are getting our dicks sucked
at the AT&T Park.
37
00:01:59,560 --> 00:02:02,723
We're standing on the field of
the World Series champions.
38
00:02:03,720 --> 00:02:04,801
It's totally lost on me.
39
00:02:04,880 --> 00:02:06,564
Yeah, I don't give a shit, either.
40
00:02:06,640 --> 00:02:09,484
Hey! I'm Nicole Stein.
41
00:02:09,560 --> 00:02:11,449
I lead the Growth Team at Stern Taylor.
42
00:02:11,520 --> 00:02:14,603
- Oh. I'm Dinesh.
- I'm Gilfoyle.
43
00:02:14,680 --> 00:02:17,365
I love it. So what do you
two do at Pied Piper?
44
00:02:17,440 --> 00:02:19,124
I'm the CTO.
45
00:02:19,240 --> 00:02:21,720
Ah, he's joking. I'm the CTO.
46
00:02:21,800 --> 00:02:23,325
Fuck you, I'm joking.
47
00:02:23,400 --> 00:02:25,607
Okay, how could you be
the Chief Technology Officer?
48
00:02:25,680 --> 00:02:30,083
I get it. You hear the word "chief,"
and you think "Indian Chief."
49
00:02:30,160 --> 00:02:31,491
But you're the other kind of Indian.
50
00:02:31,560 --> 00:02:34,086
Okay. One, fuck you. I'm Pakistani.
51
00:02:34,160 --> 00:02:36,527
And two, how could you be CTO of anything?
52
00:02:36,600 --> 00:02:37,886
You have to be able to organize,
53
00:02:37,960 --> 00:02:39,485
you have to be able to delegate,
you have to be...
54
00:02:39,560 --> 00:02:42,006
I delegate you to go get me a fucking beer
55
00:02:42,080 --> 00:02:43,684
while I talk to Nicole.
56
00:02:44,320 --> 00:02:47,244
George Silver,
operating partner at Stern Taylor.
57
00:02:47,960 --> 00:02:50,611
So, what do you do at Pied Piper?
58
00:02:51,600 --> 00:02:53,250
He's the CTO.
59
00:02:57,280 --> 00:02:58,441
That's Drew Houston.
60
00:02:58,520 --> 00:03:00,921
We've been circling each other
for the last 20 minutes.
61
00:03:01,440 --> 00:03:02,487
Ooh!
62
00:03:02,560 --> 00:03:03,686
The Winklevoss twins.
63
00:03:03,760 --> 00:03:06,809
Look at them. They're like
two genetically enhanced Ken dolls.
64
00:03:06,880 --> 00:03:08,723
Do you know
how much Bitcoin they're worth?
65
00:03:09,240 --> 00:03:10,765
Oh, shit, they're splitting up.
66
00:03:11,800 --> 00:03:13,484
Cameron's the left dominant one, right?
67
00:03:13,560 --> 00:03:15,847
- I can't tell them apart.
- I'm gonna come at him from the right side,
68
00:03:15,920 --> 00:03:18,810
try and herd them back together
without spooking them.
69
00:03:19,080 --> 00:03:20,320
Watch this.
70
00:03:20,400 --> 00:03:22,368
Cameron! Cameron!
71
00:03:22,840 --> 00:03:24,888
- Okay.
- Well, well, well,
72
00:03:24,960 --> 00:03:27,167
look who's the big swinging dick.
73
00:03:27,240 --> 00:03:30,369
Hey, Javeed, everything okay at Goolybib?
74
00:03:30,480 --> 00:03:32,847
You gotta ask them. They canned me.
75
00:03:32,920 --> 00:03:34,809
- What?
- Yeah.
76
00:03:34,880 --> 00:03:37,565
Our investors got spooked
by a possible down round,
77
00:03:37,640 --> 00:03:39,608
so they shoved
an acquisition down my throat.
78
00:03:39,680 --> 00:03:42,889
Yeah, an acquisition of
$200 million, right?
79
00:03:42,960 --> 00:03:46,965
Yeah, they all made out.
I had a reverse vest with no triggers,
80
00:03:47,320 --> 00:03:49,687
then I lost all my shares
when they fired me.
81
00:03:50,640 --> 00:03:52,722
I blew my whole signing bonus
renting that house.
82
00:03:52,800 --> 00:03:55,007
I'm looking into suing 'em.
83
00:03:55,640 --> 00:03:56,971
Jeez.
84
00:03:57,040 --> 00:03:59,008
Look, all I can say is,
85
00:03:59,080 --> 00:04:01,048
don't get fucked, all right?
86
00:04:01,120 --> 00:04:04,442
You take money from the wrong dudes,
and you'll get smoked as bad as I did.
87
00:04:05,160 --> 00:04:06,446
Just be careful.
88
00:04:06,520 --> 00:04:08,170
Everyone is watching you now.
89
00:04:08,240 --> 00:04:10,846
Yeah. Totally. I know. Thanks, Javeed.
90
00:04:10,920 --> 00:04:15,289
No. I mean, they're watching you right now.
91
00:04:18,040 --> 00:04:19,849
Yeah.
92
00:04:19,920 --> 00:04:21,649
Damn it. Where is that camera?
93
00:04:33,160 --> 00:04:34,810
I can't believe
how many gifts we're getting.
94
00:04:34,920 --> 00:04:38,242
Gifts I'm getting.
That Oculus rig is addressed to the CTO.
95
00:04:38,320 --> 00:04:39,970
No, I'm the CTO.
96
00:04:40,040 --> 00:04:43,089
As your superior,
I order you to give me that Oculus.
97
00:04:43,720 --> 00:04:45,927
You can't make me do stuff.
You're not the boss of me.
98
00:04:46,000 --> 00:04:47,764
- Actually, I am the boss of you.
- Okay.
99
00:04:47,840 --> 00:04:49,046
Richard, tell him I'm CTO.
100
00:04:49,120 --> 00:04:50,963
No, you already told that fat guy
that I'm the CTO.
101
00:04:51,040 --> 00:04:52,724
Stop, stop, stop. Please stop.
102
00:04:53,720 --> 00:04:55,609
I have a ton of work to do.
You have work to do.
103
00:04:55,680 --> 00:04:57,728
Maybe let's do the work instead of that.
104
00:04:59,240 --> 00:05:01,561
Jared, we were supposed
to get a term sheet today.
105
00:05:01,640 --> 00:05:03,165
Have we heard from Peter Gregory?
106
00:05:04,040 --> 00:05:05,929
Peter Gregory is dead.
107
00:05:06,720 --> 00:05:07,721
What?
108
00:05:15,600 --> 00:05:17,409
Holy shit.
109
00:05:25,960 --> 00:05:28,122
He was the smartest,
110
00:05:28,200 --> 00:05:31,010
shrewdest,
111
00:05:31,080 --> 00:05:33,560
strangest man I've ever known.
112
00:05:35,560 --> 00:05:37,688
I can't believe that he's gone.
113
00:05:38,040 --> 00:05:41,249
Can I ask what happened?
114
00:05:41,360 --> 00:05:43,124
Yeah. Um...
115
00:05:43,200 --> 00:05:46,044
He was in the Serengeti on safari...
116
00:05:46,120 --> 00:05:48,691
- Ah.
- ...and he had just gone into his tent
117
00:05:48,760 --> 00:05:51,730
when a hippo wandered into the camp.
118
00:05:52,200 --> 00:05:53,565
Oh, wow.
119
00:05:54,600 --> 00:05:55,931
He was attacked by a hippo?
120
00:05:56,040 --> 00:05:57,201
No. No.
121
00:05:57,280 --> 00:06:00,921
I guess the hippo started to charge
122
00:06:01,000 --> 00:06:03,446
when the guide grabbed his rifle
and shot at it,
123
00:06:05,120 --> 00:06:08,203
but his aim was off, and...
124
00:06:10,000 --> 00:06:12,765
And he shot Peter Gregory by accident?
125
00:06:12,840 --> 00:06:15,286
- Yeah.
- No, he missed...
126
00:06:16,080 --> 00:06:19,448
But I guess the sound of the gun
startled Peter,
127
00:06:19,520 --> 00:06:23,002
who ran out of his tent and...
128
00:06:25,160 --> 00:06:26,889
Ran right into the hippo?
129
00:06:26,960 --> 00:06:29,884
No, the hippo was also
startled by the noise
130
00:06:30,480 --> 00:06:34,849
and had run off prior to
Peter exiting his tent.
131
00:06:38,880 --> 00:06:40,644
So, what happened to Peter?
132
00:06:41,280 --> 00:06:45,205
He hadn't run in a long time,
133
00:06:46,000 --> 00:06:50,005
maybe ever, and you know, he just...
134
00:06:53,800 --> 00:06:54,847
That was it.
135
00:07:00,160 --> 00:07:01,207
- Uh.
- Uh.
136
00:07:01,280 --> 00:07:04,841
That is so very strange.
137
00:07:04,920 --> 00:07:07,685
- Very sad and tragic. Wow.
- Very sad and strange.
138
00:07:09,360 --> 00:07:10,885
See you.
139
00:07:12,440 --> 00:07:13,487
Man, that is so weird.
140
00:07:13,560 --> 00:07:16,848
I mean, one minute Peter Gregory is here,
the next, he's just gone.
141
00:07:16,920 --> 00:07:18,126
Jared, it's Erlich.
142
00:07:18,200 --> 00:07:21,283
I need you to set up
all the other VC meetings, ASAP.
143
00:07:21,360 --> 00:07:23,044
Line 'em up nuts to butts.
144
00:07:23,120 --> 00:07:25,771
Erlich, what are you doing? Monica
just said they're still gonna fund us.
145
00:07:25,880 --> 00:07:26,961
We should just sit tight.
146
00:07:27,040 --> 00:07:30,965
Look, I loved Peter Gregory
maybe even more than he loved me,
147
00:07:31,040 --> 00:07:32,280
but there's something
you need to know here,
148
00:07:32,360 --> 00:07:35,364
something that Monica
isn't exactly volunteering up,
149
00:07:35,440 --> 00:07:38,091
and that's that all of these one-man firms
have a key-man clause.
150
00:07:38,160 --> 00:07:39,650
- Do you know what that means?
- No.
151
00:07:39,720 --> 00:07:42,200
It means that now that
Peter Gregory is gone,
152
00:07:42,280 --> 00:07:43,691
all the Raviga investors
153
00:07:43,760 --> 00:07:46,604
have the contractual right
to cash out and walk away,
154
00:07:46,680 --> 00:07:50,002
which means that by the end of the day,
there may not be a Raviga.
155
00:07:50,080 --> 00:07:52,651
- Seriously?
- Yes, so we have to prepare for that.
156
00:07:52,720 --> 00:07:55,769
Now, I know that it makes me
sound like a terrible person,
157
00:07:55,840 --> 00:07:57,001
but we have a company to run.
158
00:07:57,120 --> 00:07:59,327
And do you know who
the first person to agree with me would be?
159
00:07:59,400 --> 00:08:00,731
Peter Gregory.
160
00:08:10,880 --> 00:08:13,360
And that is the very first spot
in our new campaign
161
00:08:13,440 --> 00:08:15,408
heralding the upcoming release of Nucleus
162
00:08:15,480 --> 00:08:17,164
this January at CES.
163
00:08:17,760 --> 00:08:20,161
- Any questions?
- I have a question.
164
00:08:20,240 --> 00:08:21,241
That was horrible.
165
00:08:22,040 --> 00:08:25,522
I just got humiliated by a fucking
teenager at TechCrunch Disrupt,
166
00:08:25,600 --> 00:08:28,365
and you give me this tampon ad?
167
00:08:28,440 --> 00:08:30,442
A girl with diabetes on a swing?
168
00:08:30,520 --> 00:08:32,443
- I think she has cancer.
- Yeah.
169
00:08:32,520 --> 00:08:34,204
At least that's how I read it.
170
00:08:34,280 --> 00:08:35,805
I don't care what kind of disease she had!
171
00:08:35,880 --> 00:08:40,044
All I care about is that
Nucleus is better than Pied Piper.
172
00:08:40,120 --> 00:08:41,770
Hendricks just left us all in the dust.
173
00:08:42,440 --> 00:08:44,124
If we get this wrong,
174
00:08:44,200 --> 00:08:46,601
we could blow
the business opportunity of a lifetime!
175
00:08:46,680 --> 00:08:49,206
Data creation is exploding.
176
00:08:49,280 --> 00:08:54,161
With all the selfies and useless files
people refuse to delete on the cloud,
177
00:08:54,640 --> 00:08:59,885
92% of the world's data
was created in the last two years alone.
178
00:08:59,960 --> 00:09:01,041
At the current rate,
179
00:09:01,120 --> 00:09:05,170
the world's data storage capacity
will be overtaken by next spring.
180
00:09:05,240 --> 00:09:07,641
It will be nothing short of a catastrophe.
181
00:09:07,720 --> 00:09:11,770
Data shortages, data rationing,
data black markets.
182
00:09:11,840 --> 00:09:15,401
Someone's compression
will save the world from data-geddon,
183
00:09:15,480 --> 00:09:19,121
and it sure as hell better be Nucleus
and not goddamn Pied Piper!
184
00:09:20,800 --> 00:09:22,290
I don't know about you people,
185
00:09:22,360 --> 00:09:23,646
but I don't wanna live in a world
186
00:09:23,720 --> 00:09:27,805
where someone else makes the world
a better place better than we do.
187
00:09:33,480 --> 00:09:37,405
"Data-geddon." Is he married to that, or...
188
00:09:37,480 --> 00:09:39,687
There's just been a lot
of "geddons" lately.
189
00:09:39,760 --> 00:09:42,411
That's true.
"Snow-mageddon," "car-mageddon."
190
00:09:42,480 --> 00:09:44,528
There's that movie Armageddon.
191
00:09:49,640 --> 00:09:51,688
Laurie, you wanted to see me?
192
00:09:51,760 --> 00:09:53,808
Monica, come in, come in.
I'm sure you've heard by now
193
00:09:53,880 --> 00:09:55,723
that I've been named
our new managing partner.
194
00:09:55,800 --> 00:09:57,529
Yes. Congratulations.
195
00:09:57,600 --> 00:10:00,763
Did the limited partners tell you
how they made their decision?
196
00:10:01,200 --> 00:10:03,168
Oh. They looked at the
portfolio performances
197
00:10:03,240 --> 00:10:05,481
of each of the senior partners
over the last several funds,
198
00:10:05,560 --> 00:10:08,086
and my numbers were,
objectively, the most favorable.
199
00:10:08,160 --> 00:10:09,764
Therefore, I was selected.
200
00:10:09,840 --> 00:10:14,482
Yeah, it's just managing partner
is all about meeting with people
201
00:10:14,560 --> 00:10:16,369
and interacting with people.
202
00:10:16,440 --> 00:10:18,329
You can sit down if you want to.
Do you want to?
203
00:10:18,400 --> 00:10:20,050
- Oh...
- Or should we stand?
204
00:10:20,280 --> 00:10:21,964
Uh... I... Whatever...
205
00:10:22,040 --> 00:10:23,041
- I'm standing...
- Okay.
206
00:10:23,120 --> 00:10:24,281
But you don't have to.
207
00:10:24,880 --> 00:10:27,770
- Okay.
- Would it make you feel awkward to sit?
208
00:10:27,840 --> 00:10:29,251
I'm okay to stand.
209
00:10:30,640 --> 00:10:33,086
- Monica...
- Of course.
210
00:10:33,440 --> 00:10:35,090
Peter Gregory is dead.
211
00:10:36,040 --> 00:10:37,804
Yes, I know.
212
00:10:37,880 --> 00:10:42,169
On a personal note, his death is very sad.
213
00:10:42,240 --> 00:10:45,084
But on a professional
level, it's untenable.
214
00:10:45,160 --> 00:10:46,321
I've been reviewing his files.
215
00:10:46,400 --> 00:10:48,880
He was pursuing a number
of extremely dubious positions.
216
00:10:49,000 --> 00:10:53,642
Are you aware that we own
a $30 million ostrich farm in Morocco,
217
00:10:53,720 --> 00:10:56,644
or that we are the majority stakeholders
218
00:10:56,920 --> 00:10:59,400
in three companies that
specialize in invisibility?
219
00:10:59,560 --> 00:11:04,282
This box is filled with napkins covered
with notes detailing Peter's conviction
220
00:11:04,400 --> 00:11:08,291
that genetically-modified cranberry fungus
would become the next cotton.
221
00:11:08,400 --> 00:11:10,448
- That... That one I remember.
- Yes.
222
00:11:11,560 --> 00:11:12,971
- Monica.
- Mmm-hmm.
223
00:11:13,920 --> 00:11:15,570
Peter Gregory is dead.
224
00:11:16,880 --> 00:11:18,530
- Yes.
- We need to seem competitive,
225
00:11:18,600 --> 00:11:20,011
now more than ever,
226
00:11:20,080 --> 00:11:23,289
to our investors as well
as to the industry at large.
227
00:11:23,360 --> 00:11:24,361
Well, I mean,
228
00:11:24,440 --> 00:11:28,411
Pied Piper is probably the hottest
early investment in town right now,
229
00:11:28,480 --> 00:11:29,720
and we have them.
230
00:11:29,800 --> 00:11:31,450
Do we?
231
00:11:32,200 --> 00:11:35,568
But why then are they speaking to other
firms about investing in their Series A?
232
00:11:35,640 --> 00:11:38,450
No, no. I just told them to
sit tight for a day or two
233
00:11:38,520 --> 00:11:39,760
until we sorted things out.
234
00:11:39,840 --> 00:11:44,050
It seems that that advanced
a sense of uncertainty,
235
00:11:44,120 --> 00:11:46,327
and now we're at risk
of losing their round.
236
00:11:46,400 --> 00:11:48,846
This could jeopardize the firm
237
00:11:48,920 --> 00:11:51,890
and, by extension, your
career here, Monica,
238
00:11:51,960 --> 00:11:53,450
as an associate partner.
239
00:11:53,520 --> 00:11:56,205
Well, I guess I was just kind of in shock.
240
00:11:56,280 --> 00:11:57,361
Monica...
241
00:12:00,520 --> 00:12:02,329
Peter Gregory is dead.
242
00:12:04,800 --> 00:12:07,201
Yes. I know.
243
00:12:08,960 --> 00:12:10,200
This is great.
244
00:12:10,280 --> 00:12:12,726
I mean, do you know how many times
I've gone into these rooms
245
00:12:12,800 --> 00:12:15,770
with nothing but a half
of an ass in my hand?
246
00:12:15,880 --> 00:12:20,647
We're walking in there with 3-foot cocks
covered in Elvis dust.
247
00:12:21,840 --> 00:12:24,491
- Really?
- Richard Hendricks? They're ready for you.
248
00:12:25,320 --> 00:12:27,971
- This is a fucking layup, guys.
- Okay, let's do this.
249
00:12:29,640 --> 00:12:31,130
Not you, Jared.
250
00:12:31,840 --> 00:12:33,763
Now, with proper funding,
251
00:12:33,840 --> 00:12:38,607
we should be able to put together
a functioning beta in time for CES
252
00:12:38,680 --> 00:12:43,049
and compress Nucleus out
of the marketplace.
253
00:12:46,240 --> 00:12:47,810
Yeah.
254
00:12:47,880 --> 00:12:48,927
I don't know.
255
00:12:49,960 --> 00:12:51,450
You don't... What?
256
00:12:52,080 --> 00:12:54,048
It just doesn't seem worked out to me.
257
00:12:54,880 --> 00:12:59,363
Well, I mean, it was worked out enough
to win TechCrunch Disrupt.
258
00:12:59,440 --> 00:13:02,284
Yes, and congratulations, you won 50 grand,
259
00:13:02,360 --> 00:13:05,807
but you're asking us for 200 times that.
260
00:13:05,880 --> 00:13:10,681
Richard, look, we all know
about your amazing compression rate,
261
00:13:10,760 --> 00:13:12,888
but let's not be naive here.
262
00:13:12,960 --> 00:13:16,043
You can't expect to just
throw money at an algorithm
263
00:13:16,120 --> 00:13:19,966
and beat one of the largest
tech companies in the world.
264
00:13:20,040 --> 00:13:21,690
So why don't you rework this a little
265
00:13:21,760 --> 00:13:24,491
and come back in with a little more?
266
00:13:24,560 --> 00:13:26,210
Maybe next week?
267
00:13:28,160 --> 00:13:29,207
And?
268
00:13:29,600 --> 00:13:31,682
That was really weird.
269
00:13:31,760 --> 00:13:34,730
I guess we don't have
as much Elvis dust on us as I thought.
270
00:13:34,800 --> 00:13:37,485
You see? This is why I wanted
to go with Peter Gregory.
271
00:13:37,560 --> 00:13:38,607
This is bullshit.
272
00:13:38,680 --> 00:13:42,321
I mean, that guy throws this huge party for us
and then acts like he doesn't even want us?
273
00:13:42,400 --> 00:13:43,925
I mean, I fucking hate parties.
274
00:13:44,000 --> 00:13:45,889
And then he says, "Come back next week
when you have more."
275
00:13:45,960 --> 00:13:48,691
More? More than 5.2 on Weissman?
276
00:13:48,760 --> 00:13:50,444
No. No.
277
00:13:50,520 --> 00:13:53,729
Fuck that guy. Fuck this place.
Fuck this whole place.
278
00:13:54,240 --> 00:13:56,322
- Watch me fuck this place.
- No, wait! Wait, wait!
279
00:13:57,960 --> 00:14:01,362
Hey. You remember when you told me
to come back when I had more?
280
00:14:01,440 --> 00:14:03,010
And then I said I would?
281
00:14:03,080 --> 00:14:06,687
Well, I'm not going to. Ever.
This doesn't count. Okay.
282
00:14:06,760 --> 00:14:09,366
I'm covered in dust. I'm a 3-foot dick,
283
00:14:09,440 --> 00:14:11,966
and I've got half an ass
to go to some other company
284
00:14:12,080 --> 00:14:15,050
who's never gonna put me on a Jumbotron
or throw balls at me.
285
00:14:18,520 --> 00:14:19,760
Bye.
286
00:14:27,200 --> 00:14:29,885
Are you feeling unwell?
Do you need protein?
287
00:14:29,960 --> 00:14:31,325
I don't know what happened.
288
00:14:31,400 --> 00:14:34,688
Between Peter dying
and Raviga maybe being gone, I just...
289
00:14:34,760 --> 00:14:36,762
I just wanna get funded
and build Pied Piper.
290
00:14:36,840 --> 00:14:38,205
I hate this part.
291
00:14:38,960 --> 00:14:40,883
Well, if one thing is for sure...
292
00:14:40,960 --> 00:14:44,203
...if we're gonna get any traction,
I need to step up my game.
293
00:14:44,320 --> 00:14:46,004
It's an email from Ron LaFlamme.
294
00:14:47,320 --> 00:14:49,721
"Just got a term sheet from Stern Taylor.
295
00:14:49,800 --> 00:14:53,964
"They offered $5 million
at $25 million post-money valuation.
296
00:14:54,080 --> 00:14:55,320
"More than I thought."
297
00:14:55,400 --> 00:14:56,890
Shit. They were negging us.
298
00:14:57,000 --> 00:14:58,968
- Negging?
- Negging is going negative.
299
00:14:59,040 --> 00:15:02,442
It's a manipulative sex strategy
used by lonely chauvinists.
300
00:15:02,520 --> 00:15:03,726
See, everybody wants us.
301
00:15:03,840 --> 00:15:08,084
But, by shitting all over us,
they try and bring our price down.
302
00:15:08,160 --> 00:15:12,085
But you shitting all over them
counteracted their shitting all over us.
303
00:15:12,160 --> 00:15:15,403
You negged a neg.
Richard, this could be good.
304
00:15:15,480 --> 00:15:17,847
- Where do we have next?
- Ross Loma Capital.
305
00:15:17,920 --> 00:15:19,410
Should I keep doing it?
Should I keep negging?
306
00:15:19,520 --> 00:15:20,965
No, no, I'll handle this.
307
00:15:21,040 --> 00:15:23,691
If they want to negotiate
using hostility and rudeness,
308
00:15:24,960 --> 00:15:26,689
well, they picked the wrong guy.
309
00:15:27,520 --> 00:15:30,330
Well, you see, our main concern
310
00:15:30,400 --> 00:15:33,688
is how you're going to achieve
escape velocity on your growth rate.
311
00:15:33,760 --> 00:15:35,364
If critical mass...
312
00:15:36,840 --> 00:15:39,002
I'm sorry. What's funny?
313
00:15:39,080 --> 00:15:41,242
It's just that painting behind you.
314
00:15:41,320 --> 00:15:43,049
It's awful.
315
00:15:43,120 --> 00:15:46,761
It looks like harlequin Kama-sutra
done poorly.
316
00:15:47,400 --> 00:15:49,801
So, I agree,
317
00:15:49,880 --> 00:15:51,723
bad culture fit.
318
00:15:51,800 --> 00:15:53,643
I think we all just move on.
319
00:15:53,720 --> 00:15:55,131
Look, I didn't say anything
about a culture fit.
320
00:15:55,200 --> 00:15:56,725
No, I did.
321
00:15:57,320 --> 00:15:59,971
Okay. Well,
322
00:16:00,040 --> 00:16:01,326
thank you for meeting with us.
323
00:16:01,400 --> 00:16:03,289
We have a bunch of these things to go to,
324
00:16:03,360 --> 00:16:06,091
hopefully with more tasteful artwork.
325
00:16:06,160 --> 00:16:09,642
And your logo looks like a sideways vagina.
326
00:16:09,720 --> 00:16:12,291
I find that to be racist, don't you?
327
00:16:15,800 --> 00:16:16,961
Okay, here's my concern...
328
00:16:17,080 --> 00:16:20,801
Here's my concern.
Who the hell picked out that shirt for you?
329
00:16:20,880 --> 00:16:22,041
What?
330
00:16:23,080 --> 00:16:25,321
Oh, I see. With the pants.
331
00:16:25,400 --> 00:16:28,085
So I guess it's a whole thing.
332
00:16:28,160 --> 00:16:29,730
My wife picked these out.
333
00:16:29,840 --> 00:16:31,171
Then you married poorly.
334
00:16:31,440 --> 00:16:34,330
Do you care about Pied Piper?
335
00:16:34,400 --> 00:16:37,290
Do I care about Pied Piper?
Well, of course.
336
00:16:37,360 --> 00:16:39,681
Cause if you do, I'm not seeing it.
337
00:16:39,880 --> 00:16:44,647
In fact, what I think I'm seeing
is the human equivalent of a flaccid penis.
338
00:16:45,760 --> 00:16:48,411
"Flak-Sid." It's actually
pronounced "flak-Sid."
339
00:16:48,480 --> 00:16:49,891
Not a lot of people know that.
340
00:16:49,960 --> 00:16:51,769
Well, we are definitely interested,
341
00:16:51,840 --> 00:16:54,366
but I think we need to...
342
00:16:54,440 --> 00:16:56,568
I'm sorry. ls something wrong?
343
00:16:56,800 --> 00:16:59,531
No, this is all wrong.
344
00:16:59,600 --> 00:17:01,887
I am sensing a general lack of vision.
345
00:17:03,120 --> 00:17:04,690
Your muffins smell like shit.
346
00:17:04,760 --> 00:17:06,444
So do your ideas.
347
00:17:07,160 --> 00:17:10,050
One of you is the least attractive person
I've ever seen,
348
00:17:10,120 --> 00:17:12,009
and I'm not gonna say who.
349
00:17:13,480 --> 00:17:15,881
Should we leave or should you?
350
00:17:15,960 --> 00:17:19,328
We just got offered eight at 40.
351
00:17:19,400 --> 00:17:20,970
We're five for five, gentlemen.
352
00:17:21,040 --> 00:17:23,646
And Galveston Capital Fund
and Yountville Ventures called.
353
00:17:23,720 --> 00:17:25,882
They want to move their meetings up
before everyone else.
354
00:17:25,960 --> 00:17:28,725
Hey, let me try.
I want to be rude at this next one.
355
00:17:28,800 --> 00:17:30,040
Go for it.
356
00:17:30,120 --> 00:17:31,406
So, with some proper funding,
357
00:17:31,480 --> 00:17:34,165
we should be able to get
a functioning beta in time for CES.
358
00:17:35,240 --> 00:17:37,527
And if you don't fund us,
359
00:17:37,600 --> 00:17:39,728
you're a fucking slut.
360
00:17:42,920 --> 00:17:44,160
Oh...
361
00:17:44,240 --> 00:17:46,766
What's that smell? Is that a fart?
362
00:17:47,760 --> 00:17:49,000
Are you a farter?
363
00:17:50,000 --> 00:17:54,050
Now, can I have a pastry?
Or are you guys gonna eat 'em all?
364
00:17:55,400 --> 00:17:57,323
'Cause you're gonna get fat.
365
00:17:59,840 --> 00:18:03,970
It's not your fault, Richard. This is
just something that can't be taught,
366
00:18:04,040 --> 00:18:07,567
so leave the next one to me.
I can feel a big one coming on.
367
00:18:07,640 --> 00:18:08,641
What are you gonna do?
368
00:18:09,200 --> 00:18:11,362
I'm not sure yet, but give me room.
369
00:18:11,440 --> 00:18:13,966
There's something inside of me
that has to come out,
370
00:18:14,040 --> 00:18:15,565
and who am I to stop it?
371
00:18:18,000 --> 00:18:19,161
His balls?
372
00:18:19,640 --> 00:18:21,404
He put his balls on the table?
373
00:18:21,480 --> 00:18:23,608
- Right on the table.
- On purpose?
374
00:18:23,680 --> 00:18:26,206
I don't see how it could be by accident.
375
00:18:26,280 --> 00:18:29,443
Richard, I just got an email
from the guys at Midland-Oak.
376
00:18:29,520 --> 00:18:31,887
Apparently, there is a
line, and I crossed it...
377
00:18:32,880 --> 00:18:36,805
The line between $12 and $15 million!
378
00:18:37,040 --> 00:18:38,246
Ba-bam!
379
00:18:38,320 --> 00:18:39,970
Midland-Oak's offer just came in.
380
00:18:40,040 --> 00:18:44,443
Gentlemen, we are valued at 75 million,
fully diluted.
381
00:18:44,560 --> 00:18:45,721
Are you shitting me?
382
00:18:45,800 --> 00:18:47,404
Take a look at these term sheets.
383
00:18:47,520 --> 00:18:49,602
There is a linear correlation
384
00:18:49,680 --> 00:18:51,330
between how intolerable I was...
385
00:18:51,440 --> 00:18:53,044
...and the height of valuation.
386
00:18:53,720 --> 00:18:56,041
Hey, YOU guys. Um...
387
00:18:56,120 --> 00:18:59,124
This is Laurie Bream,
the new managing partner at Raviga.
388
00:18:59,240 --> 00:19:02,483
Oh, uh... Hi. I'm Richard Hendricks.
389
00:19:02,560 --> 00:19:05,404
Yes. I recognize you from your photograph.
390
00:19:05,480 --> 00:19:08,529
- It's very nice to meet you in person.
- Yeah.
391
00:19:08,600 --> 00:19:09,681
Okay, so we did that.
392
00:19:09,760 --> 00:19:12,047
Gentlemen, I am aware
of the degree of interest
393
00:19:12,120 --> 00:19:13,246
you are receiving from other firms.
394
00:19:13,320 --> 00:19:17,450
I am aware that participation in your Series
A will require a very competitive offer,
395
00:19:17,520 --> 00:19:20,444
but for numerous reasons,
I believe it to be the prudent decision.
396
00:19:21,000 --> 00:19:25,130
Now I am presenting you with this.
397
00:19:25,760 --> 00:19:29,810
$20 million at $100 million valuation?
398
00:19:29,880 --> 00:19:31,689
I don't... Uh...
399
00:19:31,760 --> 00:19:34,366
This is way more than any other offer.
400
00:19:34,440 --> 00:19:35,521
Correct.
401
00:19:36,760 --> 00:19:38,000
That is very much intentional.
402
00:19:38,400 --> 00:19:41,210
So, I believe that satisfies
your requirements?
403
00:19:41,280 --> 00:19:43,681
Monica will arrange a time
to formalize the details.
404
00:19:43,760 --> 00:19:45,330
Thank you. Have a good day.
405
00:19:46,160 --> 00:19:47,400
Uh, thank you.
406
00:19:48,920 --> 00:19:49,921
Yes.
407
00:19:53,000 --> 00:19:55,765
Congratulations, guys. I am so glad...
408
00:19:56,960 --> 00:19:59,645
Oh, shit! She's my ride home.
I'll call you, Richard.
409
00:19:59,760 --> 00:20:01,205
Uh, yeah, okay.
410
00:20:01,800 --> 00:20:04,326
- Thanks for stopping...
- Wait! Laurie, hold on!
411
00:20:06,120 --> 00:20:08,122
Guys, I think we're funded.
412
00:20:08,200 --> 00:20:10,567
- Yes! Richie!
- Yeah!
413
00:20:14,680 --> 00:20:17,650
So, I push my dick to the side,
unbutton the bottom two buttons and...
414
00:20:17,720 --> 00:20:18,721
Barn!
415
00:20:20,320 --> 00:20:21,446
Ah!
416
00:20:21,520 --> 00:20:23,249
- What are you doing?
- Shit. Sorry, sorry. Sorry.
417
00:20:24,680 --> 00:20:26,842
Meet me on the side of the house.
418
00:20:26,920 --> 00:20:28,888
- I... Okay.
- Okay. Okay. Go.
419
00:20:30,320 --> 00:20:32,243
- Hey.
- Hey, what's up?
420
00:20:32,320 --> 00:20:35,722
If anyone finds out that I came back here,
I will get fired, okay?
421
00:20:35,800 --> 00:20:37,484
Okay.
422
00:20:37,560 --> 00:20:40,404
- Don't take this deal.
- What?
423
00:20:40,480 --> 00:20:43,051
You are worth half that at best.
424
00:20:43,520 --> 00:20:45,568
Oh, wow. Thanks for the compliment.
425
00:20:45,680 --> 00:20:48,126
No. The credit to you guys.
You negotiated your asses off,
426
00:20:48,200 --> 00:20:50,567
but this is a classic runaway valuation.
427
00:20:51,400 --> 00:20:53,050
What's wrong with that?
428
00:20:53,120 --> 00:20:58,206
Pied Piper will be tied to this crazy valuation
that you will never be able to live up to.
429
00:20:58,840 --> 00:21:02,128
If you don't keep increasing
in value in the next round,
430
00:21:02,200 --> 00:21:04,521
if you have a down round, you are fucked.
431
00:21:04,600 --> 00:21:07,604
It is the kiss of death for a young CEO.
432
00:21:07,680 --> 00:21:11,366
You want to start with a realistic
valuation and grow at a reasonable pace.
433
00:21:11,440 --> 00:21:15,968
Okay, well, if it's such a shitty deal,
then why did your boss offer it to us?
434
00:21:16,040 --> 00:21:18,088
Because she's competitive as hell.
435
00:21:18,160 --> 00:21:20,970
She needs Pied Piper
to keep Raviga afloat, Richard.
436
00:21:21,040 --> 00:21:22,690
- Okay.
- Look, I respect Laurie,
437
00:21:23,120 --> 00:21:25,805
but this is the exact type of thing
Peter never did.
438
00:21:27,080 --> 00:21:29,128
Richard, come on. I own
shares in Pied Piper.
439
00:21:29,200 --> 00:21:31,282
If this high evaluation
was good in the long-term,
440
00:21:31,360 --> 00:21:33,249
would I be standing here, risking my job?
441
00:21:34,480 --> 00:21:35,561
Don't take our offer.
442
00:21:35,640 --> 00:21:38,007
Maybe go with the lowest offer you got.
443
00:21:38,080 --> 00:21:39,809
Even that might be too high.
444
00:21:39,880 --> 00:21:42,804
Again,
thank you for the compliment.
445
00:21:43,600 --> 00:21:47,924
Also, I didn't see anything in there.
446
00:21:48,000 --> 00:21:50,002
No. Yeah, thank you.
447
00:21:50,120 --> 00:21:52,407
I was gonna say if you had,
you'd have to show me yours, too.
448
00:21:55,160 --> 00:21:56,764
Um...
449
00:21:56,840 --> 00:21:59,923
- Okay.
- Okay. Thanks for the...
450
00:22:00,000 --> 00:22:01,001
Okay.
451
00:22:15,960 --> 00:22:17,371
Yeah, sorry about that party.
452
00:22:18,240 --> 00:22:19,969
I was in kind of a bad way that night.
453
00:22:20,040 --> 00:22:23,442
And truth is, I'm actually doing okay.
454
00:22:23,880 --> 00:22:26,167
- Good. That's great.
- Yeah.
455
00:22:26,280 --> 00:22:29,170
I mean, I could run the scenarios
about what happened all I want,
456
00:22:29,600 --> 00:22:33,491
but I finally just realized
there's just nothing I can do, you know?
457
00:22:33,560 --> 00:22:34,846
Yeah.
458
00:22:34,920 --> 00:22:37,685
So, I'm at peace with it all.
459
00:22:37,760 --> 00:22:40,081
I was thinking, actually, um,
460
00:22:40,160 --> 00:22:42,766
what if you had asked for less?
461
00:22:44,240 --> 00:22:45,287
What?
462
00:22:45,400 --> 00:22:47,448
Well, what if you could've gone to someone
463
00:22:47,520 --> 00:22:50,126
and asked for less than
what they offered that first round?
464
00:22:50,440 --> 00:22:52,602
Like, you mean, negotiating them down?
465
00:22:53,240 --> 00:22:55,049
- Yeah.
- Can you even do that?
466
00:22:55,120 --> 00:22:58,090
- Well, yeah. I mean, why not?
- Yeah, but...
467
00:22:59,800 --> 00:23:03,202
I mean, I guess, technically, I could have.
468
00:23:03,280 --> 00:23:04,327
Mmm...
469
00:23:04,440 --> 00:23:05,646
Huh.
470
00:23:05,720 --> 00:23:09,486
Yeah, I suppose you could argue
that it might've been easier
471
00:23:09,560 --> 00:23:13,281
to hit more realistic benchmarks
472
00:23:13,640 --> 00:23:14,846
and reach cash flow break-even.
473
00:23:14,920 --> 00:23:16,285
Yeah, that's what I'm saying.
474
00:23:17,280 --> 00:23:21,763
And then,
we wouldn't have faced that down round.
475
00:23:23,560 --> 00:23:25,005
And...
476
00:23:26,640 --> 00:23:28,847
We wouldn't have
had to settle for acquisition.
477
00:23:30,480 --> 00:23:31,766
All that money
478
00:23:32,720 --> 00:23:33,767
fucked me.
479
00:23:33,840 --> 00:23:35,888
Wow. I mean, I don't know about...
480
00:23:35,960 --> 00:23:37,610
- Shit!
- Maybe.
481
00:23:37,680 --> 00:23:41,730
- Look... Hey...
- No, no, no. We could've done a legit Series B.
482
00:23:41,800 --> 00:23:43,450
Right? I'd still be CEO.
483
00:23:43,520 --> 00:23:46,000
I'd have my job,
484
00:23:46,080 --> 00:23:47,445
my kick-ass house.
485
00:23:47,520 --> 00:23:49,648
I'd probably still have my girlfriend...
486
00:23:52,040 --> 00:23:54,566
- Fuck!
- Okay.
487
00:23:54,640 --> 00:23:57,689
Why the fuck didn't anyone tell me
I could take less?
488
00:23:57,840 --> 00:23:59,842
I don't know. I don't know.
489
00:24:01,000 --> 00:24:02,126
Ideas come up and then...
490
00:24:02,200 --> 00:24:03,611
Fuck!
491
00:24:03,680 --> 00:24:06,206
I'll take a cab, so I'll leave you to it.
492
00:24:06,280 --> 00:24:07,520
Thanks for meeting me here.
493
00:24:08,160 --> 00:24:09,161
Fuck!
494
00:24:16,520 --> 00:24:17,806
Richard.
495
00:24:18,880 --> 00:24:21,724
Richard, I'm Laurie Bream.
I was inside your home yesterday.
496
00:24:21,800 --> 00:24:23,723
Have you made a decision
regarding our proposal?
497
00:24:23,800 --> 00:24:29,045
Yeah, yeah, we'll go with you guys,
but we need to renegotiate the terms.
498
00:24:29,120 --> 00:24:32,169
I'm afraid that's untenable.
We're offering as much money as we can.
499
00:24:32,280 --> 00:24:35,443
Uh, no, no, we wanna go lower.
We want less... A lot less, actually.
500
00:24:36,400 --> 00:24:37,367
We'll go with Raviga
501
00:24:37,440 --> 00:24:41,286
if you guys do $10 million
at a $50 million valuation,
502
00:24:41,360 --> 00:24:42,771
not 20 at 100.
503
00:24:43,320 --> 00:24:44,845
I think this is more reasonable,
504
00:24:44,960 --> 00:24:48,681
and it's my final offer.
Take it or leave it.
505
00:24:48,760 --> 00:24:50,000
I was not anticipating this,
506
00:24:50,080 --> 00:24:52,924
but I think it will be
workable from our end.
507
00:24:54,760 --> 00:24:57,843
And one more thing,
Monica votes for Raviga's board seat.
508
00:24:59,280 --> 00:25:01,521
Certainly that seems unimportant.
509
00:25:02,160 --> 00:25:05,448
I will telephone your lawyer tomorrow, and
we can speak about the relevant details.
510
00:25:05,520 --> 00:25:06,726
Good.
511
00:25:15,280 --> 00:25:19,046
Peter was one of the few
who genuinely took action
512
00:25:19,160 --> 00:25:22,209
to use technology to help humanity thrive.
513
00:25:22,280 --> 00:25:24,203
But how exactly can we quantify
514
00:25:24,280 --> 00:25:26,760
another human's contributions to mankind?
515
00:25:28,280 --> 00:25:30,726
Let's break it down into
its three component elements.
516
00:25:36,040 --> 00:25:40,762
I met Peter when he was thinking about
investing in my company, Zettasphere,
517
00:25:40,840 --> 00:25:42,444
although I think he was hesitant
518
00:25:42,560 --> 00:25:45,530
after his disappointing
initial return from Snapchat.
519
00:25:45,600 --> 00:25:50,003
He came on board, anyway,
and every month we would meet.
520
00:25:50,240 --> 00:25:51,969
Peter was always an honest man,
521
00:25:52,200 --> 00:25:54,726
and I know that
if Peter were here with us today,
522
00:25:54,800 --> 00:25:57,121
he would say that
he was not disappointed in Snapchat.
523
00:25:57,640 --> 00:26:01,201
And he would forgive you, Lev,
for your misunderstanding.
524
00:26:01,280 --> 00:26:03,521
That's just the kind of guy that Peter was,
525
00:26:03,600 --> 00:26:06,080
warm, generous,
526
00:26:06,160 --> 00:26:09,050
and not disappointed in Snapchat.
527
00:26:15,760 --> 00:26:19,162
I'll never forget the
first time I met Peter.
528
00:26:19,240 --> 00:26:22,483
It was in his mom's garage, where we
started our first business together
529
00:26:22,600 --> 00:26:25,604
manufacturing VGA graphics cards
for IBM clones.
530
00:26:26,880 --> 00:26:28,006
We never looked back.
531
00:26:28,080 --> 00:26:29,809
And you know, the last time I saw him,
532
00:26:29,880 --> 00:26:33,168
it was at a restaurant,
not a half-mile away from that same garage.
533
00:26:33,240 --> 00:26:34,810
We talked, as old friends do,
534
00:26:34,880 --> 00:26:37,531
he asked me about Jackson Hole,
535
00:26:37,600 --> 00:26:40,683
I asked him about Pilates.
536
00:26:41,200 --> 00:26:43,851
And yet, something was wrong.
537
00:26:44,840 --> 00:26:48,845
Underneath it all,
there was an unmistakable tension.
538
00:26:49,520 --> 00:26:51,522
A tension I will forever regret.
539
00:26:52,040 --> 00:26:54,486
It's no secret Peter and
I had our differences.
540
00:26:55,280 --> 00:26:57,282
We let business get between us.
541
00:26:57,360 --> 00:26:59,089
NOW?
542
00:26:59,160 --> 00:27:01,447
Now I wish I could say I'm sorry for that.
543
00:27:01,520 --> 00:27:03,727
Now it's too late. He's gone.
544
00:27:04,480 --> 00:27:08,087
And it makes me realize
the importance of forgiveness,
545
00:27:08,160 --> 00:27:11,687
of doing things with love
and compassion in your heart,
546
00:27:11,760 --> 00:27:13,888
and not vengeance and competition.
547
00:27:15,160 --> 00:27:18,323
I mean, we owe that to
each other, don't we?
548
00:27:18,400 --> 00:27:19,447
And to him?
549
00:27:20,280 --> 00:27:23,489
After all, this valley is the place
Peter himself helped build.
550
00:27:23,920 --> 00:27:26,844
Where we come together as dreamers,
551
00:27:26,920 --> 00:27:28,251
all of us,
552
00:27:28,320 --> 00:27:31,051
to truly make the world a better place.
553
00:27:32,360 --> 00:27:35,330
This is Florence during the Renaissance.
554
00:27:35,400 --> 00:27:37,004
This is Camelot.
555
00:27:37,520 --> 00:27:41,730
This is the place Peter himself called
"the cradle of innovation."
556
00:27:45,760 --> 00:27:47,410
I will miss my friend.
557
00:27:50,200 --> 00:27:51,850
Bye, Pete.
558
00:27:55,000 --> 00:27:56,968
Maybe he is a human, after all.
559
00:28:00,760 --> 00:28:02,285
I'm sorry.
560
00:28:02,640 --> 00:28:04,165
It's from Ron LaFlamme.
561
00:28:05,560 --> 00:28:07,324
"Gavin Belson is suing you.
562
00:28:07,400 --> 00:28:09,767
"Filed claims today that
you stole Pied Piper from Hooli."
563
00:28:10,560 --> 00:28:11,800
Shit.
564
00:28:19,280 --> 00:28:21,248
Gavin Belson is suing us.
43676
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