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MAKING MONEY. THAT HAPPENED AT FACEBOOK AND GOOGLE. THAT IS OK. I WORRY ABOUT COMPANIES THAT ARE LOSING MONEY AND HAVE NO PLAN TO MAKE MONEY. THESE SUPER-LOW-MARGIN BUSINESSES THAT OPERATE LIKE THEY ARE HIGH-MARGIN, THAT IS A PROBLEM. SO, IF YOU HAVE THE OPERATING CULTURE OF FACEBOOK , BUT THE MARGINS OF AMAZON, THAT IS A PROBLEM. EMILY: WHAT ARE YOUR PLANS? >> TO MAKE A LOT OF MONEY. THIS IS LIKE A LIGHTBULB FOR PEOPLE. SOMETIMES, IT TAKES 20 YEARS AND, EVENTUALLY, IT HAPPENS. IT IS OK TO LOSE A LOT OF MONEY UP FRONT AND YOU CAN INVEST IN GROWTH. YOU HAVE TO HAVE A PLAN TO MAKE LOTS OF CASH. EMILY: THIS IS THE ECONOMIC DEMAND OF SHIFTS. WHY ARE SO MANY INVESTORS GETTING IN TO ON DEMAND SET UPS? >> UBER HAS BURNED MORE CAPITAL THAN ANY OTHER STARTUP EVER. I DO NOT THINK UBER IS IMMUNE TO THIS. I THINK THEY WILL BE A HUNDRED ALIEN DOLLAR -- HUNDRED BILLION DOLLAR -- $100 BILLION PLUS COMPANY. EMILY: WHAT DO YOU THINK OF THE CHANGES REDDIT MADE? >> I DISAGREE WITH THE PREMISE THAT REDDIT NEEDS TO MAKE A COME BACK. IT IS GROWING FAST AND IT HAS NOT DONE THE EASY WINS. YOU SHOULD PREFERRED THE UN OPTIMIZED STARTUP. THERE IS NO GREAT MOBILE STRATEGY AND YOU CAN BE EVEN BETTER. STARTING OPTIMIZED, THERE ARE NO EASY WINS. EMILY: SHE SPENT A FEW MONTHS AT REDDIT AND SHE DECIDED NOT TO APPEAL THE KLEINER PERKINS SITUATION. >> I DO NOT WANT TO COMMENT ON A SITUATION TO APPEAL OR NOT. I WILL ENJOYED -- I ENJOYED WORKING WITH HER AND SHE BROUGHT WOMEN INTO THE FOREFRONT OF PUBLIC INTEREST IN THE WAY THAT WAS IMPORTANT. EMILY: DID YOU LEARN ANYTHING? ARE YOU DOING ANYTHING DIFFERENT ? >> EVERYBODY TALKS ABOUT DIVERSITY AND THE THING YOU SHOULD DO IS NOT TALK ABOUT IT AND JUST ACT ON IT. WE HAVE A FLA, EQUAL -- FLAT, EQUAL PARTNERSHIP AND WE FUND WOMEN AT THE RATES THAT THEY APPLY. THERE ARE THINGS THAT WE CAN DO TO HELP. I DON'T THINK THAT DIVERSITY IN TECH IS JUST ABOUT MEN AND WOMEN. WE TRY TO GO IN A LOT OF DIFFERENT DIRECTIONS. EMILY: DO YOU THINK FUNDING AT THE RATE THEY APPLY IS ENOUGH? >> IT IS HARD TO DO MORE THAN THAT. WE WANT TO ENCOURAGE MORE WOMEN TO APPLY AND WOMEN IN OUR PARTNERSHIP GO AND MEET WITH THEM TO TALK ABOUT STARTUPS. IT WOULD BE HARD FOR US TO FUND AT A HIGHER RATE THAN WHEN THEY APPLY. PARTNERSHIPEMILY: HOW DO YOU SEE THAT GOING OUT? >> IT SEEMS EXPENSIVE TO ME. MAYBE IT GETS MORE EXPENSIVE OR CRASHES. COMPANIES THAT REALLY MATTER RETURNING QUALITY OF LIFE FOR PEOPLE. SO, I TRIED TO PONTIFICATE ON THE ENVIRONMENT TO PEOPLE WHO COME ON THE SHOW. EMILY: IS THE UNICORN THEME DANGEROUS? >> WHAT DO YOU MEAN BY THAT? EMILY: I TALKED TO MARK ABOUT SEEING UNICORNS RATHER THAN A $1 BILLION VALUATION. >> MORE THAN HALF WERE VALUED AT $1 BILLION AND $1.5 BILLION. PEOPLE ARE OBSESSED WITH GETTING TO THIS MARK AND THEY ARE WILLING TO PUT STRUCTURES ON TERMS TO GET THERE. I THINK THAT, IF YOU LOOK AT EIN AND CHILLED DAY TO, YOU WOULD SAY THERE IS SOME FRAUD GOING ON. THERE IS A HUGE DESIRE TO GET RIGHT TO $1 BILLION. I DO NOT CARE ABOUT IT AND I DON'T THINK IT WILL MAKE A COMPANY GREAT OR NOT. EMILY: WILL IT COME BACK TO BITE THEM? >> IF YOU SHOULD HAVE BEEN WORTH 200 MILLION AND -- TWO AND MILLION DOLLARS AND YOU ARE WORTH $1 BILLION, THAT WILL COME BACK TO HER YOU. -- TO HURT YOU. YOU CAN GET TERMS THAT WILL COME BACK TO BITE YOU. EMILY: SAM ALTMAN, THE PRESIDENT OF A STARTUP. HE SEEMS TO HAVE HIT A GROOVE