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00:00THINGS THAT REVOLUTION? >> PARTICULARLY FOR FUNDS THERE IS A LONG LEAD TIME. THEY MAKE THEIR BETS AND THERE ARE A LOT OF FUNDS. THERE IT THEY CAN PULL BACK AND IN THE FOLLOWING YEAR. IN TERMS OF BACKING COMPANIES THERE HAS BEEN A SLOWDOWN. WE DIDN'T DO MUCH INVESTING BECAUSE WE SAW THE MARKETS AS OVERHEATED IN DEALS GETTING COMPETITIVE. EMILY: WHAT DO MAKE OF THE FACT THAT FEWER FUNDS EVEN CLOSE? >> THERE ARE GOING TO BE FEWER CHOICES LOOKING FOR FUNDING. EMILY: AND YOU HAVE VCS CHASING FEWER BUT BIGGER DEALS. WE ARE SEEING MEGA ROUNDS LIKE UBER. >> I THINK THAT HIGHLIGHTS THE FACT THAT NO MATTER HOW WORK IS PERFORMING, GREAT COMPANIES ARE GOING TO BE CREATED AND FUNDED. >> I WOULD LIKE TO ADD, IT IS NOT JUST VCS. IT IS OTHER COMPANIES THAT WE HAVE SEEN, HUGE LATE STAGE ROUNDS. ALL OF THE OTHER ATYPICAL VCS STEPPING UP AND SAYING I WANT IN ON THIS. EMILY: THE SAME TIME YOU ARE ANNOUNCING YOUR LARGEST INVESTMENT TO DATE, AND INSURANCE TECHNOLOGY STARTUP, EXPLAIN WHAT THIS DOES AND WHY YOU THOUGHT IT WAS WORTH PUTTING SUCH A BIG BET ON. 3 WE BACK COMPANIES ATTACKING LEGACY INDUSTRIES, APPLYING TECHNOLOGY TO DISRUPT THEM. WE VIEW INSURANCE AS A MASSIVE OPPORTUNITY. A LOT OF WORK HAS BEEN DONE BRINGING INSURANCE ONLINE AND AUTO. WE THINK THE LONG-TERM DISABILITY, IT IS NOT ONLINE. YOU HAVE TO GO THROUGH AN AGENT. THAT IS NOT WHAT CONSUMERS WANT. WE HAVE BACKED A TEAM THAT HAS A LOT OF REGULATORY KNOWLEDGE. YOU NEED THOSE INDUSTRY CHOPS TO APPROACH IT. IT HELPS MEN FORM WHAT THEY ARE BUYING AND WHAT THEY DON'T NEED SO THAT IT IS NOT A SPAM KIND OF FEEL. IT HELPS THE APPLY FOR INSURANCE AND GETS THEM THROUGH THE SALES PROCESS AND PROVIDES THEM WITH A MONITOR TO THEIR POLICIES. EMILY: WE'VE SEEN A MINI EXPLOSION IN INSURANCE TECHNOLOGIES. WHY IS THAT? GUEST: THE REGULATORY LANDSCAPE ISN'T AS COMPLICATED. WHEN YOU THINK ABOUT INSURANCE, IF YOU'RE BUYING INTO A POLICY YOU NEED TO KNOW THEY ARE GOING TO BE AROUND FOR A LONG TIME. YOU DON'T WANT TO BUY A LIFE INSURANCE POLICY AND AGO OUT OF BUSINESS BECAUSE IT IS A STARTUP. THAT IS THE REASON WHY THE LANDSCAPE IS SO TIGHT ON INSURANCE. THAT IS TAKING A LONGER TIME TO DISRUPT THE MARKET. EMILY: AS YOU SAID AT THE BEGINNING, WHAT HAPPENS IS CYCLICAL. WHAT ARE WE LOOKING AT FOR THIS YEAR? WHAT ARE INVESTORS EXPECTING? >> FROM THE PEOPLE WHO BACK THEM, IT WOULD MEAN FOR THE STARTUPS THERE IS SOME AIR COMING OUT OF THEM. THIS IS IT NEWS. WHAT WE SEE WITH THE 2015 NUMBERS IS CONFIRMATION THERE'LL BE A TOUGHER ENVIRONMENT GOING FORWARD. >> WE ARE EXCITED ABOUT NEXT YEAR. WE DIDN'T APPLY MUCH BECAUSE OF THOSE DYNAMICS. WE ARE EXCITED ABOUT THE OPPORTUNITY TO COME. EMILY: ALL RIGHT. THANK YOU FOR JOINING US. OUR NEW VC REPORTER, THANK YOU BOTH. NOW, NEWS OF DAVID BOWIE'S PASSING, MILLIONS OF FANS MOURNED BY SEEKING HIS MUSIC VIDEOS ONLINE. ON VEVO THEY SET A NEW RECORD.

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