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00:00IS ONE OF THOSE FOUNDERS TO HOPES TO TAKE OVER MANAGEMENT RESPONSIBILITY FROM THE COFOUNDER. THE X FUND HAS BEEN EMBROILED IN A BIT OF DRAMA LATELY. YOU MOVED TO TERMINATE YOUR COFOUNDER AND FILED A RESTRAINING ORDER. YOUR COFOUNDER SAID YOU TRIED TO GET RID OF HIM WITHOUT HIM KNOWING IT. WHAT REALLY AND? GUEST: WHEN YOU ARE GROWING FAST AND SCALE SOMETHING, THINGS GET BROKEN. IT'S UNFORTUNATE THE WAY THINGS TURNED OUT, BUT WE ARE MOVING FORWARD. EMILY: SO YOU ARE GOING TO TAKE OVER MANAGEMENT RESPONSIBILITY? GUEST: YES. THAT FIELD THAT -- THAT MEANS I'M BACK IN BOSTON MORE OFTEN. EMILY: YOUR INVESTORS VOTED TO CUT INVESTMENT IN HALF WHICH MEANS YOU LOST EFFECTIVELY $50 MILLION. GUEST: WE DECIDED TO RELEASE THEM FROM PART OF THEIR COMMITMENT. THE GOOD NEWS IS WE STILL HAVE $60 MILLION TO SUPPORT THE PORTFOLIO. EMILY: AND YOU ARE GOING TO FIND A NEW PARTNER? GUEST: I HOPE SO. WE HAVE TO DO EXACTLY WHAT WE HAVE DONE TO START. X FUND WAS HOUNDED WITH WHAT WE CALLED LIBERAL ART FOUNDERS. THEY ARE TECHNICALLY TALENTED BUT HAVE A SPARK OF SOMETHING ELSE. LIKE I HAVE A GUEST ROOM IN MY HOUSE AND WHEN IT IS FREE, I'M GOING TO RENT IT AS A HOTEL ROOM . THAT'S A REAL SOCIAL INSIGHT. IT PRODUCES LIBERAL ARTS FOUNDERS THAT HAVE THOUGHTS LIKE THAT. EMILY: YOU GREW UP AS A VENTURE CAPITALISTS AND WORKED IN SILICON VALLEY AND NOW YOU COMMUTE TO BOSTON . SO YOU ARE SORT OF UNBIASED AND I CAN YOU WHAT'S THE ADVANTAGE OF STARTING A COMPANY IN BOSTON AND STAYING IN AUSTIN? GUEST: FROM AN INVESTMENT STANDPOINT, WE THINK IT'S AN INCREDIBLE OPPORTUNITY. WE WENT FROM $53 BILLION TO 23 BILLION. I FEEL LIKE THIS IS A PLACE FULL OF TALENT, CAPITAL, AND THIS IS A PLACE WHERE LOTS OF INCREDIBLE PEOPLE COME TO GET THEIR EDUCATION AND WHERE THEIR IDEAS ARE FIRST FORMED. EMILY: HARVARD HAS BEEN CRITICIZED FOR NOT DOING ENOUGH. WHAT DO THE SCHOOLS NEED TO DO TO KICKSTART INNOVATION? GUEST: THAT'S A FANTASTIC QUESTION. MOST OF THE ELITE COLLEGES HAVE A SYSTEM AND THEIR CAREER SERVICES OFFICE HIRE PEOPLE TO PRETEND TO BE INVESTMENT ANCHORS AND UMAG INTERVIEWS. WHAT HAVE THESE COLLEGES DONE AND THE ANSWER IS TO PARTNER WITH FIRMS LIKE X FUND TO SAY IF YOU WANT TO CREATE SOMETHING UNUSUAL AND NEW, HERE ARE THE RESOURCES THAT WE ARE OR ARE NOT

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