Still a Lot of Upside for Twitter: Greylock's Elman

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Oct. 3 (Bloomberg) -- Greylock Partners' Josh Elman comments on Twitter's S-1 filing. He speaks with Emily Chang on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

A partner at greylock partners.

Josh worked at twitter in the product apartment for seven -- for several years, knows this company inside and out.

What do you make of the numbers now that we know them?

Look, i think it is pretty incredible to remember that five years ago, everybody thought facebook was a giant and twitter was nothing, and now there are already over 100 million users daily.

Over 50% of the user base is using it everyday.

I think there are a lot of upsides here.

So many people in the world want to know what is going on.

Twitter has a lot of opportunities to get two more and more of them to give them that everyday.

You were in such a unique position.

You worked at facebook and linkedin before you worked at twitter.

How does twitter compared to facebook, working at twitter compared to facebook?

I think each of the companies has had a very unique cultures that have led to their strength.

Facebook was just an incredible place to build the score social graph that everybody connected.

I was at linkedin really early and we were figuring out a lot of the stuff for the very first time, and the culture there has become an incredible business that is operating so efficiently.

Twitter was always unique.

It was based in san francisco and had this idea of open water cooler culture for the world.

I think you felt this great combination of great technology, but also this media bent from the very early days.

Josh, we were speaking earlier about user growth slowing down.

Does that bother you?

You know what, i haven't looked at the filing, so i do not know what the numbers actually are, but i would be surprised if the team does not have a lot of things intended to make it grow again or grow even faster.

This product is so simple and fundamental that there have to be ways to really reach that one billion person potential.

One of the things that they do mention in the risk factors is that this platform, this thing that they have built, is unproven, and therefore, the future is uncertain.

Their success is uncertain.

What do you make of that?

Twitter is really sort of knew.

This is a phenomenon that really took the world by storm, but we do not know what the future holds.

We don't know if this phenomenon will last.

What makes you think that it will?

You know, it is a great question.

I think it comes down to core human -- we all want to know what is going on in the world.

We all want quick wakes -- ways to communicate when we see something.

Twitter has built this product that makes it so simple and powerful to do this in real- time, really fast, in the public eye, see what public figures who you really trust and respect are saying, and really be right next to them in the exact same time want to be able to reply to them with a single message.

There is something very fundamental and human that is happening here that is different than on facebook where you met in the real world or linkedin where you connect to all of your colleagues that you have worked with before.

I think the opportunity for this is something that is so human and profound.

It is unproven.

Getting to 100 million users daily is no small feat, but five years ago, do not exist.

We've got opened five years, the company will be even more relevant than it is now.

Twitter competes with both facebook and linkedin.

Something we haven't mentioned is that facebook, which recently bought instagram -- instagram is going to be rolling out ads over the next couple of months.

Do you see twitter as a threat to facebook and instagram, or vice versa?

I think there is obviously competition where they are all going for digital ad dollars, but if we take a step back and look at the broad ad and media world, so much user eyeball attention is being devoted to these new products, facebook and instagram and twitter, where it used to be devoted to television, print magazines, etc.

I still think there is so much room for all of these businesses to grow.

They can begin to get that business and advertisers -- and advertisers attention.

What is twitter's edge?

When it comes to mobile ad dollars, why do you think advertisers will choose twitter?

What is the value of a twitter add?

The fundamental reason people go to twitter every days to find out what is happening in the world.

When they are there, finding out news and information or a new product was released or a movie is coming out, all of those things fit into exactly the model people are going to twitter for.

They will be able to monetize those kinds of impressions and make conversions.

I think it is a scale very different from facebook.

Josh, you are investing in other startups that you are at greylock partners.

What can other startups learn from the twitter experience?

I think the twitter experience shows, start with a great product with a really simple idea and really keep working on finding ways to make the idea so simple and profound and get people to use it.

Scale up from there.

A lot of people try to solve 20 problems at once.

The secret to twitter is it really try to make this super simple thing that lets you put one message out to anybody that follows a, and that core simplicity you -- simplicity has kept them resilient.

You left facebook before facebook went public.

You left twitter before twitter went -- which we assume, will go public.

Do you have any worries that twitter could change, the culture could change, as a public company?

I'm not that worried about it.

I still know several -- there are quite a few people at the company.

Going public is a milestone that is great to celebrate for a day, but these companies are on much bigger missions for the world, much larger things.

Great, it is public, and people will cheer, but the next day they will go back to work and say, how do we get to this one billion user -- these one

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

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