John Doerr: Entrepreneurs Are Missionaries
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thank thanks very much I really do enjoy coming here and I'm particularly proud that my wife Ann is able to join me today with my partner when Shay so I'd like this session to be quite informal I want it to be on topics that are of interest to you and then there's a couple of interest to me that I'd like to share so you've probably not seen this before I hope that you have but I want to begin by getting about a half dozen really important topics or questions from you up on the board so if you put your hand in the air and identify yourself tell me what's on your mind what would you like to hear about from venture capital to hot new technologies to public policy to hot stock tips whatever you want to cover yes name Peter cool education entrepreneurship from Peter and I can remember the squirrel so next question okay our venture capital is going to succeed in green nor does this may be the next march of the lemmings question yeah your name internet-related okay online news another one yes in 30 words are less trite healthcare costs some more let's go yes so the future for venture capital right nothing short of an industry analysis and prediction yes ma'am developing nations or would you consider India and China developing okay how about two more yes that's a really good question but you know what I don't ever try to speak for the companies I'm invested in so that one's off the board two more yes absolutely great question I'm going to cover that go ahead to hear that and one more so what I thought is a set piece we do is start with these questions and topics I'll cover a number of them through some slightly organized remarks and in those remarks I want to tell you a little bit about go ahead and take those down for now I'd like to talk a little bit about venture capital in technology I'm gonna offer some unsolicited career advice which is worth exactly what you're paying for it and and then I'd like to do a deep dive into an area of interest to me and my partner's which is the area of green technologies and innovation therein and then we can come back I hope for some more questions or topics so we're gonna start with kleiner perkins is that right when we are okay very good so what we're gonna we're then gonna deep dive into a problem that that I'm actually quite concerned about and I want to tell you how I came to this concern it was last summer sometime after how many people have seen Al Gore's movie An Inconvenient Truth so yeah after having seen that movie which moved me a lot I had a conversation they had an even bigger impact on me we were having dinner with some friends and we went around the table to say okay what do you think of this global warming is it real or not is it man-made and there was largely agreement there we then came to my 15 year old daughter Mary and I asked Mary so what do you think about this and she said well I want you to know the following I'm scared and I'm angry your generation created this problem she turned to me and then she said you better fix it and it's a it changed my life it really changed the commitment and passion that I have for this problem and and I submit to you that not only did I not know what to say it really drove home the impact of what we're confronting we cannot afford to underestimate this problem I think we face really irreversible catastrophic potential change and I think we've got to act and we've got to act very very decisively so I set out on a mission with my partners at Kleiner Perkins with wen and others to do what we usually do when we see a big opportunity or a big problem we go Network like crazy we meet all the smart people that we possibly can and we mobilized and we hopped on airplanes we went to we went to Brazil to learn about ethanol we we went to Sacramento to Washington DC we were in in China we were in India we were in Davos and everywhere I turned we learned more and I grew more concern so I'd like to tell you four stories about what we've learned over the last year about that and to set the context really to understand where energy is coming from and where it's going there's a wonderful chart provided by the government that shows the sources of energy you'll notice on the left the sources and on the right the uses and they're largely dirty fossil fuels from oil gas and coal with clean renewables up on the top to the uses residential industrial and and automotive and there's three big points to take away from this the first is that less than five percent of our energy in the upper right hand left hand quadrant comes from clean renewables the second among the uses shows that you see more than half of the energy that Graybar is wasted it's in the form of waste heat and the third is that if we want to reduce greenhouse gases it boils down to three things to cars to coal and conservation that's the whole story that's how we're gonna attack this problem we're gonna need more efficient cars that don't burn oil we're going to need to find ways to make coal cleaner because we are going to burn it and then we've got to work very hard and very fast on conservation so I told you where networkers what we did at Kleiner is we put together something we call the green tech innovation network and it's about 50 policy makers entrepreneurs academics business leaders I mean from Al Gore to Jay Keasling over at UC Berkeley who just got a five hundred million dollar grant from British Petroleum did you work there on biosynthesis and and they advised us we tapped their brains and involved them in ways I'm just about to tell you but the first place we went is we went to companies because companies are really powerful and companies matter a lot in this campaign and so the story I want to tell you with apologies to Diana Ross child who lived there and worked there is a bit of a story about how Walmart went green and why and it was just a couple years ago that Lee Scott the CEO came to the view that Green was going to be the next big thing and he wanted Walmart to participate in that so they made it a corporate priority and committed they would lower the energy consumption in their stores by 20% 20% and do so in less than seven years 30% for the new stores and then they went to the stores and they said you know the three largest uses of energy are heating air conditioning lighting and refrigeration so what did they do they started painting all the roofs of their stores white putting in them smart skylights that could harvest the daylight coordinated with the interior lighting and then they put their refrigerated goods all of them behind closed doors with LED lighting pause there for just a moment think about it why would you have an open refrigerator and try and cool the whole store well these other merchants aren't stupid maybe because people would buy more cheese and milk if it's right there and you can touch it but Walmart being data-driven went out and tested that proposition they found no change people will buy the stuff behind closed door closed doors as readily as before the net of this is these are all simple solutions we don't have to engineer new microbes to get this done their existing technology and it matters enormous Lee why well because Walmart is massive this is the largest private employer in America and that's the largest private user of vehicles if it were a country Walmart be the sixth largest trading partner with China most important I say is when Walt Walmart makes a move like this as you'd say go green to make money it affects a lot of other companies who admire them enormous Lee General Electric Federal Express and so forth but I think I told you at the start of this conversation that my daughter Mary was really scared and one of the themes you'll hear from me is I'm quite scared about this problem also I don't think in fact we're gonna make it well why not you say John if Walmart's doing all these great things well when Walmart achieves 20% energy reductions which is fantastic it is a very big deal but frankly it's not enough we're gonna need all the other companies to act if on average we're gonna get a 20% greenhouse gas reduction let me turn from companies to individuals and tell another story about Walmart in fact one about Walmart they have a hundred and twenty five million customers fact number two there were 65 million compact fluorescent light bulbs sold last year and then the stunning fact number three is that Diana's colleagues at Walmart stepped up to the plate and said we're gonna sell a hundred million more compact fluorescent light bulbs this year I think about 125 million customers that's practically every household in the United States third of the population and a hundred million compact fluorescent light bulbs that's what they've signed up for it's not easy the fact about these bulbs is consumers don't really like them they cost a lot more in the beginning their color isn't quite right it takes some time for them to turn on you can't dim them so my message to us about consumers is despite a very large payoff like a hundred million lamps means those customers will save six hundred million dollars a year and they'll eliminate twenty million tons of co2 despite those great gains which happen in just a year it's really really hard to change consumer behavior companies consumers why is it so hard to change consumer behavior I mean we use two tons of steel aluminum and glass to haul our sorry carcasses to the shopping center an SUV it's stupid we do that it's stupid that we take water bottle it in Fiji and then ship it here to the United States it is stupid that we dumped 70 million tons of co2 into our atmosphere every day like it's an open sewer are people that stupid I don't think so I think it's hard to change consumer behavior because we don't tell individuals how much the behavior costs and how much co2 they're generating do you know I mean we care about this do you know how much co2 you generated to come here today I don't know I drove here and if I don't know how can we expect other consumers to do this those of us who care would act better if we knew where if the market told us but as long as we pretend that this is free and the uses are nearly invisible I don't know how we can expect change and that's why honestly I'm really afraid that we're not going to get the consumer change that we need so that my daughter Mary is not going to be scared back to the lessons third lesson that Kleiner learned is we want to check out and understand this problem is that policy really matters it really really matters it's paramount and so I've got a story to tell you that's a behind-the-scenes story from this green tech innovation network remember those 50 experts that we got together at the end of our first summit a software entrepreneur Bob Epstein who founded Sybase stood up and said you know the single most important thing we can do about this problem is go to Sacramento and convince the legislators that a mandatory cap on greenhouse gas emissions is both good and good for business and everybody rallied around that we said let's go and sure enough it was just a couple months later that a dozen entrepreneurs from Silicon Valley largely business people and someone from Google org went there and they met with we met with eight undecided legislators and the Chamber of Commerce was saying at the time you know this is bad for business it'll drive concrete production out of California the extractive industries Big Oil they don't like this and that was the only voice they heard until some other business exactly came in there and said you know the story's not quite that simple the business community is divided and in fact if you pass this legislation it'll be good for the economy and sure enough what happened is a month later the Assembly voted 47:32 to pass the first mandatory statewide greenhouse gas limits in the United States of America and they did so because they believed it could create over 80,000 jobs in California and add four billion dollars to the income of the state and remove almost 175 million tons of co2 per year pretty impressive where California starts the rest of the country can go the United States doesn't go we're never gonna get China and India on board but as significant as that accomplishment was you know California is only 7% of the u.s. greenhouse gas emissions and therefore only one and a half percent of the world's co2 emissions and frankly a 20 percent reduction on one and a half percent it's not going to be enough let's go from a state to a country I mentioned to you we went Brazil this is a story about national policy right Tom Friedman likes to say if you don't go you don't know so sure enough some of us hopped on an airplane and we flew to Brazil to Sao Paulo because we wanted to meet the godfather of the ethanol revolution dr. Jose Jose Goldman birkin and we asked him hey how'd you do this thing in Brazil and he said John it's really pretty simple the government mandated that we'd have ethanol distribution at all of our gas stations and we mandated that the new vehicles in Brazil would be flex fuel that's able to run either on ethanol or gasoline and so today Brazil has 29,000 flex fuel pumps in the country compared to 700 in the United States and a paltry two in California there was a piece in The Wall Street Journal this week I think talking about the obstacles for ethanol the other thing that they have is their new car fleet has gone from 4% flex fuel to 85% and they've done that in four years contrast that the United States we're only five percent of our new vehicles or flex fuel and most of the owners of those don't even know it so what's happening in Brazil is they've replaced 40% of their automotive gas consumption with ethanol and they're almost energy with respect to oil that means there's almost 60 billion dollars they did not ship over to the Middle East they used to create jobs in their country and they've eliminated 32 million tons per year of co2 it's really substantial in fact it's 10 percent savings across the whole country in Brazil but it's not enough Brazil is only 1.3 percent of the world's co2 emissions so even the Brazil ethanol miracle is not enough and of course we know too the problems with ethanol you can't grow sugar cane all around the world there's many issues with us and all from corn you know the bottom line on this is there's no silver bullet but Brazil has grabbed a great big bullet called biofuels and my conclusion is my fear is I think even the best of all the policies we could put in place if we got them there could very well not be enough the fourth and final lesson we learned is about the potential of really radical innovation I want to tell you about a tragic problem and a really breakthrough technology around the globe a million and a half people die every year of malaria that's a completely preventable disease we can go to the corner drugstore and buy anti-malarial medication for a couple of dollars and yet a million and a half people are gonna die because $2 is too expensive in Africa so with a 15 million dollar Gates grant some scientists up at UC Berkeley are bioengineering the key ingredient in anti malarial drugs is called artemisinin to make it 10 times cheaper and here's the thing that blew me away they're on track on budget to do that if they succeed they're gonna save a million lives a year think about it a million lives out of some technical work their breakthroughs called synthetic biology Richard Newton the Dean of the engineering school there who died of prostate cancer a few months ago a good friend grabbed me by the collar and he said John synthetic biology is the next big new important platform it's bigger than the Internet I thought wow I better learn more about this but what they he said what we do is we leverage millions of years of existing evolution in microbes and we redesign those bugs to make them useful factories and so they actually custom tailor the metabolic pathways and you end up with these chemical factories what does all this have to do with green well there's now a company founded by those folks working on malaria called amorous and their technology is being used for more than cheaper drugs they think you can make better biofuels which is a really big deal because it says that what you can do in the fuel is actually engineer every molecule in the chain that makes up a fuel and optimize it so as I was telling you any other night if all goes well we're gonna have designer bugs that are swimming around in warm vats eating and digesting sugar and excreting that are biofuels or she said well John that'll be better living through bugs Alan Kay who was at Xerox PARC while he was there he's famous for saying the the best way to predict the future is to invent it over at Kleiner we say the second best way is to fund it and so and so we're investing and we've decided to do this just over the last year two hundred million dollars out of a six hundred million dollar fund in a broad range of disruptive technologies green technologies from cellulosic biofuels to better batteries and disruptive solar panels and coal gasification and many many others and you probably noticed I'm out there making a lot of noise about these initiatives why is it honestly I believe it's crucial that the rest of the industry invest more in 2005 the venture capital industry total invested 600 million in green technologies last year had doubled to 1.2 billion dollars but here's the point we need much much more we need R&D and investment that has scaled with the size of this problem and the size of the opportunity for reference Exxon's revenues in 2005 were a billion dollars a day and you know they only spent two-tenths of a percent of sales on R&D two tenths of a percent second fat the president's new budget for renewable energy for an entire year R&D is less than a billion dollars that's less than Exxon takes in in revenue per day in the third fact I bet you didn't know there's enough hot rock under the surface in the United States to provide all the energy we would need for a thousand years it's called geothermal you know what the budget proposal was that was submitted for geothermal research a measly 20 million dollars I'd suggest you it's almost criminal that we're not investing more it is criminal in green technologies and it's why efforts like Stanford has Berkeley has and others are are so important and still in my opinion underfunded so in a year's worth of learning here's what we found out really a lot of surprises I was surprised to find a mass retailer who believed going green was going to be really profitable or who would have thought that a database entrepreneur would move the entire legislature legislature in California transforming the state who would have thought that a developing nation in South America would become the biofuel capital of the world and who would have thought that engineers and scientists trying to make a better drug we'd set on a course to make better biofuels most importantly who would have thought that all of this is not enough okay then what is enough what it's going to take to stabilize the climate what's it going to take to keep the ice and Greenland from crashing into the ocean well the science tells us that they're guessing we've got to drastically reduce co2 emissions to perhaps half of the current levels even while the worldwide economy grows and I'll say maybe I hope we have the political will to chart that kind of a trajectory here in the United States but we've only got one atmosphere so we've got to get a responsible trajectory for the world and one of the wildcards here is China the United States today emits about 5.8 Giga tons of co2 per year China is about 3.3 if we stay on a course of business as usual China will be emitting by 2050 23 Giga tons a year that's as much as the rest of the world total amidst today if we proceed with business as usual we're going to go out of business not just a drill deeper on this when I was in Davos part of our learning earlier this year the China's mayor of Dalian was asked about China co2 strategy and let me paraphrase his answer he said the United States generates seven times the co2 per citizen that we do in China why should China sacrifice our growth so that the West can continue to be profligate and stupid that's what he said and nobody had a good answer for him the only answer I can imagine is one that's economic so that all the people in all the nations do the right thing we've got a use policy and harness innovation so we can make the right outcome the profitable outcome and therefore the likely outcome and that means is Walmart says that going green has really gotta mean making green making money saving money remember energy is a six trillion dollar business worldwide this thing is the mother of all markets I mean you remember that internet thing yeah it's still growing and it's a big deal but going green I think is gonna be bigger than the Internet in fact it could be the largest economic opportunity to 21st century and moreover if we succeeded this going green will be considered going green will be I think the largest transformation that we've had on the planet as Bill joy reminds me since the planet went anaerobic that is from you know methane to oxygen I'm sorry aerobic from methane to oxygen in our atmosphere I said thanks Bill one more important point I'm pretty sure that we're fast running out of time nobody knows what exactly the tipping point is but greenhouse gases circulate in the atmosphere for thousands of years before fully absorbed there's still greenhouse gases up there from Henry Ford's original Model T and so this problem is building and building it's the integral of what's been done until now we've got to plan to overachieve on this because if we got to cut all emissions in half that means we can't count on everybody doing their part some of us are gonna have to do more the cost of delay here is really enormous I don't see how we can afford to come up short because the risk is really a runaway it's like the people who start to save for their retirement in the last five years of their life they're not going to make it so the hard question really is if the trajectory of today's companies individuals policies and innovations is not enough what are we gonna do what are you gonna do about your nephews or nieces are you gonna do about the kids you may have someday yeah and I don't know I really don't I believe in the power of entrepreneurs I think they do more than anyone thinks possible with less than anyone thinks possible and I also as you can tell believe in the power of networks the kind of networks you're poised to build to continue and sustain because you're in this very special place and I think everybody here cares a great deal about this change so what's the call to action you know a lot of people said well we need a you know a Manhattan Project or a mission did like Apollo to put them in on the moon and I think that severely understates the magnitude of this problem both of those were really great projects but to get the planet to get those institutions to move we're gonna have to reindustrialize the planet we're gonna have to change the behavior of most of if not all of the individuals so what's the individual call to action for you those of you who have this passion I think you should think very seriously about having your next gig be going green in whichever way you choose to do it you get involved in the policy process as an individual you know right two congressmen advocate go Lobby to make sure that one of the six bills in the current Congress for mandatory cap and trade on greenhouse gases gets to the President's desk and then push on him to sign it use your personal set of networks and rolodex to think outside the box what would it mean if this school really went green what would it mean not just the buildings but all the lives of everybody here what would it mean if you move Stanford to go green Stanford is the largest employer in Silicon Valley what would it mean if where you went next to take your talents in your influence was an out-of-the-box green thing what would it mean for Amazon to go green or Apple or Google I don't know but I know that well I'm scared generally a kind of glass overflowing guy not just half full but overflowing kind of guy and I'm pessimistic about the way this is going to turn out I'm hopeful you know we can't help but try to work together as large and as powerfully as we can as a group so that our creativity and our influence gets multiplied and if we do that I am as I said hopeful that I can have a different conversation with my daughter Mary 20 years from now that's green that's why over half the professionals at Kleiner are very engaged to work on green tech in addition to the Internet no it's not over yeah medical technologies and in a project we have in pandemics so I'd like to turn now if I can to just a couple of thoughts about kleiner perkins but most importantly about what makes for great ventures and then as I suggested this up unsolicited career advice you know a kleiner is viewed as and I don't think we'll ever shake this as a as a good quite good venture capital firm collectively we've decided to try and describe ourselves as an RC firm that is as a relationship capital firm because everybody's got the same money and I think it's the relationships the networks that you and we can bring to new ventures that that make the most difference so yeah we're a team of 22 partners and we've had as dean said a pretty good value creation over the last 33 years that we've been there but the most important thing about the partnership I'm part of are in fact the partners and they are just remarkable they're technically strong they've got operating experience in on board there's three generations of these partners in our firm at any given time that's how Tom and Eugene built the partnership and a number of us get a lot of publicity like I do but I have to tell you adventurous as well as Google that's not a John Doerr project that's a John Denniston Juliette Flint bill joy initiative and we all really gang tackle an opportunity to try to provide services to entrepreneurs and when we see a venture with the right key success factor if I can move from venture capitalists to ventures we try to assist them like crazy I really think venture capitalists not not be center stage our place is off to the side of the stage kind of behind the curtains and pulling them open for the various acts in the performance the best ventures have these key success factors they absolutely have a plus passionate founders they're committed to technical and market excellence they're serving large fast-growing markets they have a reasonable approach to their financing they have a sense of urgency but most of all for our sensibilities they are missionaries not mercenaries what do I mean by that it's really important and I was tuned into this by my partner Randy Komisar he's written a book about parts of this and you can sense this when you're interviewing to work in a company or a venture the difference between being a mercenary and a missionary is all the difference in the world and while the world's not quite to these two extremes you know on one hand the mercenaries they have enormous Drive they're opportunistic like Andy Grove they believe only the paranoid survive they're really sprinting for the short run but that's quite different I suggest to you than the missionaries who have passion not paranoia who are strategic not opportunistic and they're focused on the big idea and partnerships these it's the difference between focusing on the the competition or the customer it's a difference between worshipping at the altar of founders or having a meritocracy where you get all the ideas on the table and the best ones win it's the difference between being exclusively interested in the financial statements were also in the mission statements it's the difference between being a loner on your own or being part of a team having an attitude of entitlement versus contribution or as Randy puts it living a deferred life plan versus a whole life that at any given moment is trying to work different screen just making money anybody tells you they don't want to make money is lying or making money and making meaning offs also or my bottom line is it's the difference between success or success and significance you can choose and to be sure early in my career I was focused on my career in telling money that balance will shift over time but it's so much easier to be passionate about trying to solve the problem in consultative selling as opposed to flogging some new breakfast cereal with deep respect for the people who are become brand experts working on packaged goods you get the right values and a team that's energized and committed to their work and remarkable things happen and we've seen that across an array of remarkable ventures there's a lot of logos up here I don't propose to dwell on any of them except to see that they're successful and then try and be thematic what are the themes that flow through these great companies that can be and are being built well we've organized our partnership in a kind of semi strategic way around initiatives and that's when several of us like a team get together to focus on something and historically they've been the bits and bytes in the bugs and drugs in the information tech and in the life-science attack but recently we've added Green Tech which I suggested is all about Cole's car in conservation and then an important effort I won't talk about called pandemic preparedness which in my alliteration is really a threat that I think could very well be fast and fail and for which we're woefully unprepared but I want to move from tech ventures if I can to his story right from here from the business school about social ventures in social entrepreneurs because the remarkable thing happened about six years ago Kim Smith a GSB student raised her hand somehow sought me out we found each other and said I want to do a 380 to deal with the large enormous intractable problem of the deterioration of public education in America public education that's the largest most screwed up part of the American economy and of course you know what like a carpenter with a hammer for a venture capitalists every solution is a venture capital fund and Kim proposed and put together founded something called the newschools venture fund which was the idea that we could seek out education entrepreneurs someone asked what they are those are those hybrid combinations of leaders who can scale organizations maybe from business in educators and know how to work their way around the system that we could find those support those help them write business plans so that they can build scalable innovative new schools because all the action and education is at the school and with the teachers they found that a recipe called Charter Public Schools is really sustainable and scalable anyone I suggest can make a single school great the real question is how can you make a network of a couple dozen schools or a hundred schools great because we got eighty thousand schools in this country and at least twenty some people say thirty percent of them are crummy they're killing the kids the kids that only get to those schools have a permanent cap on their lifetime in California we even plan where we're gonna put our state prisons around where those crummy schools are that's not the America I was raised in so what they've done with about seventy million dollars is back more than a couple dozen education entrepreneurs and their ventures who have founded and are running today over a hundred new innovative charter public schools there's some in East Palo Alto there's one in San Jose there so there's in Oakland and that group is on track without adding any more to it to add another four hundred charter public schools total five hundred five years from now couple hundred kids in a school that's a million kids every year but the genius in this like with Walmart is not so much these schools because I'm still only talking about five hundred out of eighty thousand but when you put four or five of these in Oakland California they put enormous pressure on the other regular crumber from a public schools we've got to get better or the students leave there to get this competition idea right within the public education system this is really good work hard work takes a long time commitment I have to tell you I'm so proud to be associated with a GSB alum they said that she and others were going to devote their life to this kind of work you know in addition to advising entrepreneurs in the commercial sector that there's power in these social entrepreneurs who can do more than anyone thinks possible with less than anyone thinks possible two more examples I'm just going to touch on because I can tell we're running short at a time this guy Bono you may think of him as a rock star wrong his passion is desperate illness in Africa what he calls stupid poverty these people who can't get anti-malarial drugs and so the first thing he did with an organization called data is you ran all around the world and I think he got 40 billion dollars worth of unproductive third-world debt forgiven it was just seeping away dollars and obligations from economies desperately poor economies that are now being applied to education into healthcare and then for his next gig about a year ago he launched this red campaign right that allow average Americans everywhere who care about this but don't know what to do to buy gap sheet t-shirt or a red iPod or red Motorola phone and have half the profits of that go into the global fund on a recurring basis with a five-year commitment because they can lower their marketing costs it's co-branded right that red brand begins to stand for something we'll see over time how this story turns out but he's the real thing as is certainly Muhammad Yunus who got the Nobel Peace Prize he was here at Stanford about a year ago and his idea is that everybody has the right to capital it's a basic human right the idea that banks only lend money to people who don't need it particularly in a developing world is stupid when if you've loaned 50 dollars to a woman responsible for a family of four with that she'll buy a loom or start the business repay the money with 98 percent probability within a year and start marching that family out of the abject poverty that any of us could be in here one odd out of three one chance out of three two billion people less than a buck a day or as a Bono says kind of where you live should not decide whether you live or whether you die why are these up here because venture capitalists and Kleiner partners have found a way to help them in their mission again supporting entrepreneurs you really have something that can scale I want to close with some advice for you it you know I certainly don't have to take notes on it you don't have to follow any of it but this is the real reason I'm here today and it's to suggest that you take your first assignment based on your opportunity to lawyer learn and grow they're not based on compensation I was really lucky to get hired in Intel and grew and learned a lot build a strong foundation of operating skills carry a bag that means go sell launch a product you know manage a dozen or more people learn about really great management processes from the best companies from the Amazons from the GES from the googles and then generally my advice is swing for the fences when your time is right because talented experienced leaders are going to always be in very great demand now if you're Jerry Yang or you've got a deal with Larry and Sergey from I want to see you at the end of this conversation I don't want to say the only thing to do is go great into a large company but I think that's a smart thing to do so you can make some mistakes and learn on other people's money I do think you're going to be judged on your ability to listen and think critically and above all communicate what I've seen is people's ability to move groups legitimately so is based on their ability to convey ideas and sign them up for the new mission so you want to develop as Andy Grove and sister didn't tell the art of confronting a person not the person but the problem so you can confront the problem without confronting the person it's not that my partner when Shay is a jerk it's that it's it's something about his performance and so that and neither of those I hasten to add is true so don't forget you need to learn all these basic skills that Dean just alluded to I think Lee pointed out the good fortune that I've had in my career and there are always always always in life extra points for humor here's my self-assessment of I think that's where I want to go next no I've got some more unsolicited advice for you let's do this quickly always Network go develop and sustain personal lifelong networks and I was interviewing for jobs I kept the business cards of everybody I met with I stayed in touch with them for years and years and years I interviewed as many places as I could I spent time at Sheila Packard time at tandem time at Intel I learned about the cultures these places I interviewed at Bain they wouldn't hire me I interviewed at BCG they wouldn't hire me I interviewed at Southwestern Bell Telephone and got an offer and decided not to go there but this is a tremendous time in your life to go check out what that world's like seeking mentors seek these people who will spend time with you occasionally because they believe in you and want to help you grow in the way that somebody helped them network with somebody just Brazil every day you're going to network with somebody to learn about them and how you and they can perhaps work together and once a week for sure call your mom I think it's good to seek positions that have got a lot of external contact and relations to take risk and to remember always that integrity is a binary state you have it or you don't and if you ever spread your fingers apart and let the sand a daily life flow through them I don't think you can ever get it back so this journey you're on it's long it's a marathon but you certainly want to live in this moment be present for others I'm working on trying to make better eye contact it really be there to be present for my daughter we've declared an email free zone in our house which is from 6:00 p.m. until 9:00 p.m. but you'll have time for you'll have time I'm sure in your life for those priorities we turn to in the end some really clear questioning about what are your priorities how are you gonna make meaning how do you want to achieve success and then someday how are you gonna measure that success and so I thought I'd give myself a self graded report card here on the on the education front I got a high pass at Rice for an engineering and then I didn't get into my first choice of business school but I am really honored to be here and I uh I built a career at Burger Chef that was a very unsatisfactory and and then worked at Intel that was a big win and then joined kleiner and it's looking good so far but I've taken I've taken my life and said you know I'm gonna be really nazi-like in prioritizing my time so it's family first and then my partner's second and then the ventures to which I've committed third and then always time for the new new ventures forth and then sometime carved out really measured 15% of my time no more seldom less for a kind of community service or giving back the other thing I measure is how many nights a month I get home for dinner by 6:00 6:30 but I'm in trouble and the teams in trouble if I'm not home 20 nights a month that's the goal while you've got kids that are depending on you up the other thing it moves me is books really great books and so I have a couple to recommend to you and and a way for you to get get a copy of these slides now some of my favorites are this one I alluded to it's a Harvard Business School book called the monk in the riddle by Randy Komisar really about meaning there's a great book called banker to the poor by Muhammad Yunus and then of course there's al gore's Inconvenient Truth for a story that you might think is fiction after one of my famous failures called go the entrepreneur Jerry Kaplan wrote a book called startup it's still available and he I think he should have called it screw up is what I told him but it conveys a lot of the intensity and franticness that can be in a startup venture when you get there so I'd suggest you if you're interested in joining a start-up or a venture backed large company like a Google or an or an Amazon or if you have have an idea for something you want to pursue a new business or an independent 380 I encourage you to write to me my email address is up there and in fact if you were to send me a mail with your three favorite books the one that changed your life I'll send you a copy of these slides and three more that that I enjoy I get to learn about a lot of great books that way so the bottom line of this is to encourage you to have your next gig have something to do with going green that won't be that won't be the honest voice for each of us but I hope we can marshal a lot more work and effort and energy on that problem that I think is large and so I'd like to close now by making sure we've covered these questions throw a few more up on the board and and then we'll be done we talked about Education entrepreneurs and what they're like Marya Lee no different than tech entrepreneurs except they've got some measure of experience and really deep passion about improving public education or education generally the question here was about health care costs and the role for technology which I consider to be deep in significant health care is the second largest most screwed up part of our economy it's the only system that I know of where the payers the providers and the beneficiaries that's the patients are not connected in any kind of a linked rational system and in fact I like to say that Americans just want the best healthcare that other people's money will buy and in this this deeply deeply lessens our competitiveness you see it in the automobile industry so I'm involved in a project and looking for projects that will align the incentives for the first time from a plan with the payers and the patients and infuse in that kind of web cloud-based technology so that what it really is it's a decision making business gets the right information all of the historical and the current data at the fingertips of physicians who I think need to be more empowered today let's see this is about the Internet anybody remember what that question was okay perhaps you'll ask it again online news you know I don't know a lot about online news I think I've spoken enough about venture capital and going green great great opportunities in biofuels great opportunities and technology to clean up coal the hardest and most important I think our opportunities in conservation in changing human behavior I'm very excited about the work we can and should do there and on the international front some have said that well Clinard kind of looks like the whole place is going green and nobody's leaving Sand Hill Road other venture capitalists or you know doing franchises and opening storefronts in China and in India I in fact think it's really important we do this is a flat world they'll be in increasing amounts of innovation in China and India and by the way for green also in Europe and so I think you can look for us to make some announced and we've actually done them some really major commitments three weekends ago I went to China for a day and yeah no fly there fly back more time in the air than on the ground it is just a plane flight away but it's a very very different business environment and I think if you have the aspiration which my partners and I do to try to take this torch of Kleiner Perkins Caufield & Byers understand we're custodians of it we want to pass it along for the benefit of entrepreneurs and other partners over a long period of time you say let's take a really long strategic view what will it mean to be the best supporter of entrepreneurs in China a decade from now and then I think you do a lot of different things other than renting your name out to a group of entrepreneurs that you've found so that's view we take I don't know if we're gonna succeed but this is a good question and we're very ambitious and committed to try to do well there you may note that what does it when a third of my partner's now are Asian and almost that many are fluent in Mandarin and compared to kleiner of ten years ago a third of our partners are female and I'll tell you it just it makes working with entrepreneurs and working as a team a much more diverse much much better point of view we're more effective when somebody's coming in with an Internet proposal that's a consumer Internet proposal about serving women who have most of the purchasing power on the Internet I wouldn't want to compete with the partners at Kleiner Perkins if I'm a bunch of you know 30 to 50 year-old white males someplace up on Sand Hill Road because because we don't get it okay we got time for some more questions or topics yes it depends on different audiences so I'm going to put it up here and come back to it if that's all right let's try to get a half-dozen questions on the board okay that's a big big whopper and we talked about that a little I want to come back to it another question our topic Al Gore 408 who would vote for Al Gore in 2008 doesn't look like he'd win here yeah well it depends its its plurality right not majority venture capital and tear I thought the venture capitals were the terrorism terrorism now it's a really good question and the work on pandemic is there yes your name for profit conservation sits back in green I should make a whole green column over there dollars from conservation get to more up here their remaining minutes yes L peas and green return very timely question okay that's it for questions because I know we have a hard stop here so the LP is on green returns is actually quite easy by the most successful I think three IPOs in China last year were solar companies and the markets are very large we've had no problems convincing limited partners they ought to invest in this form special funds and so forth as for the fuel pipe prices and getting in the economics that there's a cost to dumping these hydrocarbons in the like a into the atmospheric sewer the answer here I believe is mandatory programs of cap-and-trade that builds carbon into those there are other advocates who say we ought to add a very direct carbon tax which we could also in transition to where we need to end which is where in fact these green renewable fuels are cheaper if you put in place a mandatory cap-and-trade you've basically said there's now a parallel accounting system and part of the cost are the cost we measures with today's accounting and the other costs are going to be the carbon costs I was asked about what's that question there can't even read mine how do you communicate about green it really depends on the audience if you're with scientists it's a different story than the one that I told you about my daughter Mary though the personal connection telling stories is key if your policymakers actually those those stories work really well if you're with entrepreneurs and I did this recently at a great company called bloom technology you've got to be incredibly goal-oriented and task oriented and specific about how their innovation can really change the rules of the game but mostly in the noise that we're making not noise the message we're taking to the market I'm trying to move investors I'd like to see the venture capital community double its dollars next year I'd like to have legislators believe that mandatory cap and trade is good for American jobs how red china goes green whether or not we get our green automobiles from Europe China or Detroit bears enormous ly on the quality of life that you're gonna have and our kids are gonna have I'll table if I made the question of terrorism and venture capital I think I don't want to try to be good about that and I think on that point we've probably covered most of our many of your questions I I'd really like to thank you for the time to be here I like to come every couple years and I'll be around for a few minutes if you want to talk you

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