Apple, LEO, Rick discussed on This Week in Startups
Three D. Printing what does Jake Aldo about three thing? I know nothing all I know is that rick full up is one of the Great Human Beings I've met in my life. As a human being has technologist and as a leader of companies and I am so delighted to have my good friend, Rick Fill up on the program to talk about desktop metal. Because Wreck. Just S- packed. Desktop metal when did people start approaching you about this back? When did you and then how did you make the decision to to pick us back and explain to people just generally what is this back like just like expand the first two processes. So herb. Is Special Purpose Acquisition Company and it's a model where somebody. They call it a promoter or or a you know. Manager. The manager of a SPAC? Yeah. We'll go out and raise capital and build a build the a strategy around I didn't and go and find a company or they can go in a choir after the the stack is a public realistic company. So I, you raise capital, you put enough trust you pay Some small interests return to to those investors and in that that manager will go out in search for a period of a year or two years or whatever period is he'll go search for a company and so that there's approximately thirty billion dollars worth of capital in the market right now. An increase from last year an increase from the year before It's been a while since this has existed in the past the people that. Did back. Race does Fakher also known as a blank check company. There were quite rare and and You didn't see. You didn't see high quality folks attached to them. What's really changed is since math got involved, he has raised the quality of the people that are doing it and you have people. Now that are very high quality managers are. Executing the strategies you've got people like marks data dragonair was extremely high quality The person you have bill bill is that his name up bill ackman is very been very successful his you've got the. Range of very successful folks that are. Put together these. Roger Freight in who is the vice. Chairman Honeywell is. Back, and there's there's. A pull up a chart right now should we? We actually have a chart of this? The number of spags created now is We had a big debt obviously after the financial crisis, but now we're at a peak. Nick is that eighty-one their? eighty-one specs this year have been created and we're only halfway through the year. So I'M GONNA. Assume that's going to double I don't know is that is that twenty what you're at their neck set two thousand eighteen. That's twenty twenty with eighty one. So this thing is going to get more momentum and probably ends the year over one, hundred, twenty I'm going to guess right now there's one hundred ten back for for deals and La The. The reality is that around him, you know there are specific to a segment and you gotta find somebody that is a matchmaking process. So you'll get a board member with it. In our case, we're really lucky to have a partner Leo Henry. He was the fellow that Leo history when he did land systems back in the day. Actually he he did TCI and the broadband and. Henry yes. Yes. Yes. Sorry. I was thinking about another one Leo Spiegel. was sorry way there's a lot of Leo's going around those industry. So that's fantastic. So you find high quality manager he says, I want to be involved and he brings cash in his back whatever's in the trust and so now it's not like an IPO. Trust, the cash has to sticking the trust the people that are investors in this back after like the you know they have a proxy boat ride before the mergers flows and in in order to back up the dealing kiss redemptions you race what's called a pipe which investment in Public Antiquity Equity Equity? Yeah. So. that. That is. Where you get the mutual funds in a long only investors. Participate in the deal so you have the capital was raised in the SPEC at once plus the capital that comes from the pipe. And together, they form the full deal that gets announced and the pipe allows you to have a much higher quality group of investors that add to the value of the of the total offering so and you get to select them. So that is like the original IPO process. It's sort of like skimming the cream of door number one you get to say, Hey, I want fidelity I want I want this bank for whatever reason. Our. Board was the allocation committee. We literally had were super oversubscribed in we sat down and said this guy in this guy and this Gal in this fund and that fund. And Those are the folks that. Can actually give him a a meaningful position so that they could build a a A longer longer position in the company of that. That's a unique feature of this of this approach. That's yet another benefit. Our guest today spent five years at Apple and one hundred, fifty days in world warcraft I kid you not. If you have all the mittens and may even be more now, we'll find out. And he worked. In visual design at Apple On the team and led the design team for Apple TV actually. So here a little bit about that, and his company is Caffeine TV. He's a lifelong hacker from down under welcome to the PODCAST and Puran. Thank you Jason. I'm really excited to chat with you today really appreciate it. What did you learn inside of Apple? What makes that company when you look back on your five years because I know you there for four years and they they actually give you credit for that year of when you started child which I thought was interesting to me. It's the five year. Mark is pretty special to give you that Nice certificate signed by Steve. Jobs for I don't know if you could get jobs would have passed on.