Software People Taking Over Basic Industries: Stein

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Aug. 28 (Bloomberg) -- Josh Stein, co-founder of Viafone and managing director at Draper Fisher Jurvetson discusses why he thinks software people are taking over traditional and basic industries. He speaks with Cory Johnson on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

Shares.

But the stock is up 600% in the year.

And several hoft wear companies as well, all companies we'll be hearing a lot about, i think.

We focus on these investments and are people t aking over the world?

We're trying.

In what way?

What i mean by that is i think you have seen people who come with a background in technology and especially consumer technology focus taking over traditional industries, enterprise sophomore or m ore basic enterprises.

Give me an example.

I think they're bringing a new approach and radical new thinking to the se industries.

If you look at what elan did with tesla, someonehe brought the concept of radical reusability.

As a sof wear person -- he was at paypal but an online bank that he sold to paypal ask then left.

The online bank, you think of that as a sof wear business?

Yeah, i think there are a certain set of principals and values that people from the technology industry have embraced.

When nasa was building rockets they had custom pa rts for everything.

Sof wear people say, use the same bolt over and over.

Reusability and just frankly modern skiing the whole thing.

You mentioned box and sugar and i think specifically with enterprise software you're seeing the next generation.

The market actually ca res about things that weren't fully incorporating.

The y ou mean the market cares -- i'll give you an example.

Enterprise software was sold to i.t. and the end users were an afterthought.

You built the software to make their lives easy they were $10 million sales for a 500-person company and free year installation.

Exactli.

The software was not a lot of fun to use.

You flash forward ten years now and people who have grown up using facebook or having used the ipa d they don't want to go back, they want to use something easy to use.

You don't have to have a manual to be trained, you can just sit down and use.

A lot of firms exit when you sold the businesses.

I wonder when you look at these, do you look for everyone of these to be megaopportunities or do you recognize some of these are great solutions that are big enough to make money on?

Great question.

I think you have to look for opportunities and for people you think can go the distance.

If they get taken out early that's going to happen sometimes.

But i think you want to try to take market opportunities and have the potential to be large companies.

The caveat would be sometimes you don't know when you're getting involved.

Box started out as a consumer focus company.

Two years after we backed them they pivoted to enterprise.

Enterprise most of us working on the show are not business people so we don't interact with the products.

What's your key to staying on top of what companies are doing and how it's change something we try and talk a lot to the companies in our portfolio in terms of what they're using and have cio's that we consult with.

We bring 50 every year to our annual meeting and ask them

This text has been automatically generated. It may not be 100% accurate.

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