Meet the Drapers | Bucket, Vreo & Paragon One with Sanjay Nath & Abhishek Punia


– Straight from Silicon Valley, three generations of venture capitalists and one guest judge equals – Meet the Drapers! – Imagine that, they
wanted another season. – Entrepreneurs pitch — – A million dollars lost every year. – But we were both wandering aimlessly. – The judges ask the questions. – So what’s special about you guys? – We are able to stay on your platform. – But here is the twist: you the viewers get to invest for equity. This is your chance to own a
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campaign and you can invest. You can share in their future success. At the end of the season, the entrepreneurs with the most funds raised are brought
back for the season finale where Tim Draper invests
in his favorite company. Let the games begin. – Welcome to Meet the Drapers, – Welcome to Meet the Drapers, I’m Jessie, this is my dad Tim. Today we have a block chain
expert extraordinaire, Punia, who works with Draper Associates
and just knows everything you ever wanted to know about block chain. – Punia’s got so much star quality, like Madonna or Beyonce, only one name. This is Punia. – And we also have our amazing guest, first time ever on the show,
Sanjay Nath from Bloom Ventures which is India’s VC — – Early stages VC, yes. – Early stage VC. Well, thank you so much for coming, I’m so excited you’re here! – Thank you, pleasure to be here.
– So fun! And Punia, we’re seeing quite a few block chain companies today, so I hope you’re going to
just tell us everything we need to know, and break
it down in layman’s terms. – So I think what a lot
of people miss about the block chain space is
the context behind it, like why it even exists
and where it was born from, and so it’s important to trace the history just a little bit. So, the block chain space really came out of this Cypherpunk Movement that came out in the late 80s, early 90s, that’s really about coders
who valued protecting freedom and privacy and things like that. And it’s kind of that same
moral, almost movement, that is propelling block chains today. If we look at the ones that survived, the currencies that are
surviving, done well so far, the people who developed them and the people who are pushing it forward, the people who really
believe in the cause. And I think that kind of like
context of blockchain being beyond just a business is something that’s often missed but really important to understand. – Yeah, what I love about it is that you can take bitcoin as the tie, bitcoin tie, anywhere you want and pull it down and you can buy things in any country in the world, and that really resonated with me when I was talking to Sebastian
Serrano from Argentina, he said “three times my
family has lost its fortune “to political whims of government,” three times in his life, he’s only 30 years old and so he said “I’m gonna take bitcoin
back to Argentina.” And people said “well,
isn’t bitcoin too volatile?” And he said, “are you kidding?” (laughing) The Argentinian peso
just keeps going down, so anything is gonna be more stable than anything we’ve got there. But it’s not all about currency, let’s say this was a work of art dress. (playful music) Yeah, it’s a work of art dress — (laughing) – You guys missed that. You guys missed the car ride over here, my dress ripped up the butt, and so now I have a new dress on, but I’m glad you think it’s a work of art. – Yes, let’s say it’s a work of art dress, and you can identify it specifically, put it on the blockchain and
know that that is the only one. – Yeah, absolutely, block
chains are often described as the greatest disintermediary. It kind of started with a printing press which allowed people to
communicate complex thoughts across long distances. Next evolution was like the
internet, and now, I think, blockchaining is kind of one that makes it even mathematically secure
and digitally permanent which is quite interesting. – Sanjay, do you have any bitcoin? – As a firm, we’ve not heavily invested in that space but we have done Unocoin which is India’s first bitcoin
company, along with Boost VC. You know, an interesting
point that Punia brought up, we don’t hear enough about
the passion of the founders of the people who actually
started the framework. One analogy is if you think
about the world wide web, and go back to what Tim
Berners Lee started, it started by he wanted
to create an open internet and wanted that information
to be available. – Very difficult selling the first one, you have to sell it to
people who just believe or think you’re nuts but, certain sets of people who get the gleam in
their eye where there’s something if everybody did it, it would be really
cool, I’ll do it anyway. – You know that passion and vision, so it’s interesting I think, we hear a lot about the
block chain, the bitcoin, but not enough about the
founders, or the creators. So I think that that
historical perspective was quite interesting. – And in India, I understand, that they’re wavering back and forth, whether and how to regulate the coins. How does it look right now? – Ties between India and Silicone Valley are very strong and I think
there’s a very keen view to just follow what’s happening here. I think creating these
bridges is interesting. So we are obviously better at Unocoin. And, as they become larger, I think they’ll be a lot of
fast followers behind that. I think, exciting times. – Well, should we call
in our first company? – Good idea. – But first, let’s take a
look at what’s happening behind the scenes. – Hi, my name is Francis Hwang. I’m the CEO and founder
of Bucket Technologies. – And my name is Francine Hwang. I am the Head of Marketing. – And we’re brother and sister. Collectively, we’re known as “the Franks.” – And our parents are entrepreneurs. And they raised us in a
business-minded household. And so, we get it. – The reason why I started this is to solve the problem of physical cash. We believe, increasingly,
if money doesn’t move at the speed of the internet, it ceases to be useful to society. So, we’re out to,
essentially, turbo boost cash, make it accessible for the world. In 2003, I was doing some
research for the Federal Reserve, and I hadn’t really thought
about coins, until that moment. After the research project was complete, it became really, really evident just how wasteful the entire
lifecycle of coins was. So, I think it’s great to
have family by your side, especially ones that are
smarter than yourself. So, it really helps us
get through those lows. – Welcome to Meet the Drapers. (laughs) – Thank you.
– Give us your pitch. – So, the vision of Bucket
is to accelerate the world into a digital economy. And we believe that there’s a
degree of urgency behind this. If money doesn’t move at
the speed of the internet, it ceases to be useful. Right now, this is 2018. Cash is still, by and large, the most frequently used instrument. So, using game theory, design thinking, and a whole bunch of field research, essentially we’ve created a platform that we believe solves this problem by eliminating coins out
of retail transactions. We’ve built a business that can bring in 3.5% of all
the monies that we digitize. We should be digitizing no less than 166 billion dollars a year. So how this works is our
technology is really two fronts. The first integrates at the retail level. Just say “bucket the change,” and the cashier would hit “Bucket,” stores the remaining coin
change that I would get back on a ledger. They go into their
phones, scan the receipt, and that money goes into
a digital piggy bank. Every time that piggy bank
crosses $50.00 in the US, you can move it however you want, direct deposit to your bank, donate to a charity, buy bitcoin. For the end consumer, we put upwards of an additional
$300.00 into people’s pocket which may not be huge to
the people in this room, but definitely not
insignificant to most people. – How’s it going so far? What are your revenues? – So, we are actually
just about to launch. We are launching in Northwest
Arkansas, in a couple weeks. And then we launch in Singapore with the monetary authority there. – Have you gotten any
funding for this, so far? – Two and a half million
dollars in private equity, and we are currently engaging in an ICO, we’re tokenizing our net income, which is pegged to a percentage
of how much we bucket. – The tokens will be a
result of your profit. What if I buy your coin, and then you don’t make any profit? – (laughs) Well, that’s,
I guess, a problem. – Yeah, you pitched us another business, entirely another business,
a week or two ago. – Sure, yeah. – And tell us about that
and how you’re gonna be able to do both of
those things at once. – Yeah, so, time is
definitely not something that I have in abundance. Strangely enough, I’ve moved
out to Northwest Arkansas to commit to the launch of Bucket first, became close friends with the Deans of the University of Arkansas. So, I had written a paper,
submitted it to the university, essentially saying all
of the only secure ways to store your crypto make it
impossible to use your crypto. Sort of, by accident, the
university got behind the project, we’re utilizing a ground
up design of a chip set that essentially distills
down to the mobile phone, and the mobile app. So, now you can carry and
store large amounts of crypto and be able to interface
it the way that the masses need to be able to ingest it. – Are you CEO of both? – Yes, I’m founder/inventor
of the Kaiju Project. – How can an investor bet on
you, if your time is elsewhere? – Francis really sells the
vision for both companies. But operationally, we’re
much more mature on Bucket. – So, are you co-founders? – No. – She’s the Head of Marketing. She’s my little sister. This is our first time
ever working together. – Oh, great. – So, your question before
of how can you focus on two different projects, I’m handling one of the projects. – You’re handling Bucket? – I’m handling Bucket. – We’ve raised two and a half million, we’ve built the technology. If we wanna accomplish our vision, we need to be everywhere cash is. – It almost feels like physical cash is being phased out already
by non-launching technologies. So it seems like the digital, wouldn’t the digital cash
conversion be equally as valuable? – Yeah, I completely agree. I never have cash, ever. – So, in the US, 68% of
all transactions are cash. That’s US. When you go to Italy, Spain,
Germany, they’re 85% plus. Last month, the Chairman of
the Federal Reserve of the US pretty much said that there
is no slow down in cash. It’s not dying, and it’s a problem. – If this works, you’re
gonna put not just Arkansas, but Northwest Arkansas on the
map, right, with this thing. – (laughs) so our lead
investor’s from Arkansas, but it wasn’t mandatory
that we move there. What actually became very
appealing in Arkansas, is that it’s a captured market. So, even if I were to take out
an antiquated billboard ad, far more efficient, because
everyone that sees it is exactly who I want to see it. Everyone, typically, lives,
works, and plays in that. – So, it’s a good case study, correct? – Perfect. – I want to just go to
back, you talked about, interesting choice from Arkansas
then to Singapore, right? Two very different places. So, what is in it for them,
when you go and convince the Monetary Authority of Singapore? – The conversation is largely
consistent everywhere we go, because every nation generally
handles coinage the same way. So, for banks, the cost of cash is 5-13% of total bank expenditures. Which is a pretty crazy ratio,
if you break down the asset to what it’s worth. – Wouldn’t you say, though, that centralized physical currencies are what make banks relevant, as well as Monetary Authorities, relevant? So, and wouldn’t they see
this as almost competition with their existing currency? – No, so we’re not trying
to eliminate the coins. We sort of see it as this river. What Bucket represents
is a dam in that river that keeps coins, and
eventually banknotes, because we could do the
same thing with banknotes, digitized at the institution level. One day, it’ll allow a
government to come in and be like, “we’re
ready, now we can forklift “the physical asset, out.” – How ’bout the consumer. I mean, some old guy or old lady comes in, and is expecting change back, but instead gets this
receipt with a QR code that they’ve never seen before. – Well, Bucket is consumer activated. So, no cashier will ever have to say “would you
like to Bucket the change?” The consumer always activates the process. – Well, that’s gonna slow
down the whole spread of this. – When Uber launched in San Francisco, they had a pretty steep learning curve. They had to teach all of us how to call a cab again, from scratch. By the time they got to Little Rock, none of that messaging was there. Everybody there knew what Uber was; they were simply waiting
for them to turn on. So, for us, even though we’re launching in an outlier, captured market, you still have Taco Bell, McDonald’s, Starbucks, Walmart, there. With every retailer that we launch with, the idea is carrier applied
savings, additional revenue. So, we can pretty much find
where we have the most density of those participating, and then begin expanding out wards. – What are your backgrounds? – My last Corporate America
job was with Unitas Global. I was their Chief Scientist. Helped design private
enterprise cloud infrastructure for everybody from Forever21
to Molina Healthcare. – And I’ve done Marketing
in the technology space. – She’s done it for some
pretty big agencies, and stuff like that. (laughs) Humble. – Terrific. – Great, thank you so much.
– Well, thank you, for joining us here at Meet the Drapers. – Thank you. – Terrific. – This was exciting, thank you. – Very. – I’m glad I expected this. But the level of questions
went really deep. So, they were as intelligent
as I suspected and have seen. (laughs) – I think that Tim
Draper really understands the big picture of things,
and is focused on that. And, because of our
mission-driven innovation and what we’re really trying to solve, I think he will understand it. – You can check out
www.token.buckettechnologies.com. And we’re currently in an ICO right now. We have a pretty cool revenue model and a way for people to make
their return on investments. So, we encourage you to go check it out. – We know the grit that
it takes to do a startup and we love it. (Francis laughing) – So what do we all think? – I think it’s a little odd for him to have pitched me, two
weeks ago, on one business, and now he’s coming back with another. There’s something about this
maniacal focus on one thing, one product, one service. And if their loyalties are split somehow, I think it’s a lot harder to do. – We like to say, sometimes,
that it’s our job to be the VC, we don’t want you to be the VC, we don’t want you splitting your time between the three portfolio companies. It’s a vicious cycle because one of the
companies that takes off, you tend to spend more time with them, and the other becomes like a step-child. And they obviously have a great dynamic between the brother and sister. But the fact is, if the
other thing takes off, who’s gonna really run it? Because there’s a lot of execution also, it’s not just about selling the vision. – He’s very smart.
– What I liked is they answered the
questions really well. – Yeah, I thought he was great. But as a female entrepreneur,
I was kind of bummed out that she didn’t really participate. Why’d you bring her, if she
wasn’t gonna participate and pitch with you? – She’s a very skilled marketing person. But that’s a very different skill. It’s a Silo, it’s not CO. – I think the thing to note
about these two projects is, one, they’re inspired
by the same thing, and are quite synergistic. The Bucket that you get
has to go to some wallet. If he also owns the wallet, which might be a natural
progression of the company, in the first place, it’s a little logical in that sense. – So you’re saying that the two companies actually kinda work together. It’s just he’s almost
launching two products within the same umbrella. – Why are they different entities? If they’re synergies, is it, possibly, that they could be one entity? – I do get the quandary, though. Until you have all of these
little wallets out there, they aren’t really gonna make a dent in this Bucket business. – I think we need to vote. – First what we do, is we consult the crystal ball. So we all have to
consult the crystal ball. – And when you get the
signal, from the crystal ball, (Jessie laughing) Buckets, Buckets, Buckets, okay. – So, ready, we go: – [Drapers In Unison]
thumbs up, thumbs down, thumbs all around. – Oh yeah, I’m just confused. You said yes? – Hey, I’d be all for it. But I have to be only halfway, because he’s only halfway. – Yeah, I’m just confused
which company we’re running. (Tim laughing) Anyway, it’s not up to us. Do you wanna invest in them? – You could own a drop in the Bucket. – A drop in the Bucket. Go to www.MeetTheDrapers.com
and you decide. – Now, why don’t we go
onto the next entrepreneur? – But first, let’s see what’s
going on, behind the scenes. – Hi, my name is Andreas Schemm, and I’m the CEO and Founder of Vreo, and we are doing in-game advertising secured through blockchain technology. Nearly all of us are gamers ourselves. And we love to play
with our friends online. But some of them are from Eastern Europe where money is a bit more tight. And so, we thought, why
don’t we invent a way how we can monetize gaming without interrupting the user experience. What I’m excited about it
that we could continue playing with all our friends, all over the world, without being interrupted
in our gaming experience. And, we could be sure
that botting dies down, and no more money is being
lost on digital advertising. It’s super exciting to
be here with the Drapers because it’s a great opportunity to reach people all over the world, and I also noticed some of them was very interested in blockchain, which is awesome for us. And, basically, just present
our idea to a broader audience. – Welcome to Meet the Drapers. So, give us your pitch. – So, my name is Andreas Schemm. I’m the CEO and Founder of Vreo. And what we do is embedded
in-game advertising. We’re gamers ourselves, at Vreo. So, we don’t like the
interruptive ad formats of the pay-to-win or the
high, up-front prices, so we developed a solution, to
embed ads inside video games as part of the surroundings. More like product
placements in film and TV, and billboards in the real world. We provide that infrastructure for games. And we use blockchain technology because we want to solve another
problem, which is ad fraud. There’s a lot of ad fraud going on with over 12.5 billion
dollars lost, every year. – How does the ad fraud work? – Bots and click farms, also phishing– – Yeah, you fell for one of these before. – I’m sure I have. I’m running an ad, and
here are the 500,000 times people have clicked on it. But the bot clicked 500,000
times; people didn’t. – How our blockchain
solution works is, basically, we want to verify that a
real person has seen an ad, so write into the blockchain the metadata of every single ad impression. What game developer, what advertiser, also how long has he seen the ad, how big was the ad on the screen? It’s also dynamic billing. The better the ad impression, the more the advertiser has to pay. And he only has to pay if
a real person has seen it for at least some time. We don’t even have a click-through, because we don’t want to
interrupt the user experience. – You’re assuming the advertiser does not want click-through. – We do, but that’s why we do it two-fold. We know you have seen an ad, from where it was on your screen, how big was it on your screen, did you come nearer? And once you go into our marketplace, and claim your rewards, which
we give you in our tokens, then you get shown the ad again. So, the best of two worlds combined, without interrupting the user. – So, a bot could go in
there and play the game, over, and over, and over. And go very quickly, straight
to all the big screens. – We have user registration
at our platform. And also, we do pattern tracking. And if a user does the
same route 20 times a day, or even 20 days in a
row, we can check that. So that, basically,
minimizes the amount of money the botters could make. – Who’s the actual customer? – So, actually, we have three. The advertisers cannot
reach gamers right now. We introduce that, not only for mobile, but for PC, console, VR, AR, as well. The developer gets a new
way to finance his games that is not that pesky, I would say. And the user wins because
he gets some tokens from us for participating and,
basically, verifying, that a real person has seen the ad. – If you at larger players,
like InMobi and AdMob, that power the mobile ads, how do they fit in the ecosystem? – They come between the game, basically. You play the game, then you watch the ad. Our solution is while you play the game. Of course, we are competing
for advertising budgets. But, we can absolutely
be used in addition. And our blockchain solution
could even be adopted to other models, as well. – Are you hoping that
some of these developers look at your technology, and say, “I know, I’m gonna create a game “that’s completely around ads and tokens?” – He’s selling an ad company, Dad. – I get it.
– You’re thinking, we’re playing Mario Brothers, and going to get all of the mushrooms. – I have a demo actually. – Yeah, go ahead, do a demo, that’d be great.
– So, basically, just what you see here, this is the Unreal Engine,
a game development engine. So, here you can see a house and a forest. This is an ad space. And when the user comes in, he sees. (advertisement playing) – Oh. (Tim laughs) – Oh, so it’s audio and video, too. – It could be both, yeah. – I think maybe we should build a house that has a big billboard at the top, that says Meet the Drapers on it. – Great idea. – I think that’s a great idea. – I feel like advertising has
really blossomed in value. Partially because you
can get customized ads, because you have access to a lot of data that these ad distributors
are able to get. I don’t think you can get
that same symmetry in a game. While you may be preventing loss, it might not be as effective. – We have gamer IDs. So, if you’re a gamer, and we
present to you five car ads, and you look at them. And we present to you five beverage ads and you see them and you look away. Then we have found out you’re probably not that interested in beverage ads because you don’t look at them. And we have a matching algorithm to provide the best matches possible, because this is dynamic. This isn’t there forever. – And the user gets a
token for looking, right? – Exactly. – So, are you launching a token, or are you raising
money for your business? – We’re launching a token. And we actually have a two-token model. The one token, I’ve already described, where all the metadata goes. And the other one is the one
we are basically issuing. – Why wouldn’t it just be one token? – As an advertiser, if you want to spend
$50,000.00 on advertising, you want to get a value of $50,000.00. And, as cryptocurrency’s
usually fluctuating, you don’t wanna get 30K or
150K; you wanna get 50K. Our internal token is
stable, doesn’t fluctuate, and the other one, the access one. The more tokens you hold,
the more access you get to our market intelligence, to reduction of transaction fees, to the possibility to
advertise within our ecosystem, is the one that is in our new marketplace and is being traded. And the more reductions they want, the more tokens they have to have. We already have some launch partners. Now we can reach up to
40 million of gamers, and we have found advertisers
that have signed with us, which have over 150 million dollars in advertising budget every year. And, as our tech is
basically already there, we are very likely to issue
our first use cases this year. – I’m surprised that nobody
has tried to put billboards, or some sort of logo, within games. In fact, I would–
– They are. – Suspect that they have.
– Oh, they are. – Currently, I agree, there
are solutions for that. And some use cases were
generated by other companies. But that’s mainly static. So, you put it in once, and
it’s there for the whole game. And that’ difficult to price. If a game gets sold, five
million times, let’s say, how many people actually
see the ad over there? You don’t know. The developer doesn’t know and
the advertiser doesn’t know. So, how does he price it? The developer says, “well,
potential reach of five million.” The advertiser says,
“potential reach of 5,000.” So, yeah, with our dynamic solution, we only pay for what
has actually happened. And that is a new approach. – What’s your background? – Laser tag in Germany, I
created a franchising chain, and the community management, and also the German Laser Tag League is still up and running. So, my background is basically
PR, Community Building. We, of course have coders. We have a CTO, we have two coders– – Are you the Founder? – Yes. – Why do you care about this? – Because I’m a gamer myself. A lot of my friends and my
co-workers, we game together. And we have a lot of friends,
for example, in Asia, and in Eastern Europe, and they cannot pay for all
these AAA $80.00 titles. We wanna make it more accessible, but not through pay-to-win, where just the guy wins who
throws in the most money, or where you get interrupted and just wait for a few seconds. – But then on the flip side,
the banner, and ad itself, might cheapen the gaming experience. – So, we don’t want games
that are there to advertise. We want ads that help
with the game, basically. There are even studies that have shown that in-game advertising, that is embedded and rewards the user, has the highest acceptance
rate, with over 90% plus. So, there’s studies to
prove that what we are doing is the correct approach. – Well thank you so much. – Thanks for coming to Meet the Drapers. – Yeah, thank you so much. – So nice to meet you. – I had a lot of fun. And there are a few surprises. I think I should’ve talked
a bit more about my team. But there were so many questions,
and they were so engaged in what we are doing, that I basically go lost
and forgot about it. It was really easy to talk to them because they were really involved. And, yeah, I was positively
surprised how much they knew about in-game advertising. That is a very specific topic. But they were well-prepared. I think Tim Draper would invest in us, because he is very interested in cryptocurrencies and blockchain, and that’s what we are basically enabling through our solution. To bring blockchain
gaming and to advertising, which hasn’t been done before. People should invest in us
because what we do is the future. Our solution enables us to, basically, get everybody on board. It’s a triple-win solution for developers, for advertisers, and
for gamers, themselves. – So what do we all think? – I liked him. I think he’s into it.
– I liked him too. – He kind of has a good feel to him. – He has a good vibe, a very positive guy. – I’ve seen a couple of companies where they’re doing in-game advertising, and some that have done tokens. – I think I’m separating what
he’s trying to do in gaming, from the tokens, because it looks like there could be different monetization models. – Well, first I’m not convinced
of this need to token. At least not immediately,
to prove out that it works. Second, a lot of games have
a role playing element to it. So, if you see an Xbox ad
in a medieval knight game, it’s kinda weird. – What he’s saying is, I won’t interrupt your user experience. And a good designer might be
able to design in these ads, and make it a lot easier. – There’ve been a lot of successful models that have been able to monetize
without advertisings at all. And I feel like, once games do blow up, serious long-term games do blow up, they won’t use this. – I think he definitely
has the background, and he has the passion. – Seems to have been in
advertising his whole life. – I think, as far as
the team is concerned, we didn’t get enough
into the rest of the team and how he’s gonna execute it. If you move from the
team to the market size, I’m not sure how big the market size is, and how differentiated it is. You know, you can be based in the valley, but maybe the market is outside the US. Because he seems to understand
the German market very well. He was talking about laser tag,
which is news to me, right. – When he lit up, it
was when he was talking about laser tag. His eyes lit up in something
he did in the past, instead of lighting up for something he’s gonna do in the future. – Let’s consult the crystal ball, because I don’t know, I
feel like you’re digging. – Vreo. I need the crystal ball for this one. Are we feeling Vreo? Vreo, Vreo, okay. I got something. – What do you guys think? Ready? Thumbs up, thumbs down, thumbs all around. – Oh, that’s interesting. I was the most optimistic. The reason I’m more optimistic, I think, is that this is a really big market. – I don’t know how big it is.
– Gaming is. – That’s what I couldn’t figure out. – Gaming is growing super big. His boat might rise with the tide. – Okay, well, we all didn’t think so. We completely disagreed. (men laughing) – Which I’m perfectly comfortable with. In my life, that’s the
way it’s always been. And then eventually, people come around to my way of thinking. That’s usually the way it works. (all laughing) You, the viewer can decide.
– Oh yeah, you! – Go to www.MeettheDrapers.com
and you can invest. Let’s bring out our next entrepreneur. But first, let’s see
what’s going on backstage. (Jessie laughs) – Hi, I’m Matt Wilkerson. I’m the Co-Founder and CEO of Paragon One. My inspiration came from
my experience in college. I felt lost, didn’t know
which career path to pick. Got into my first job. Year-in, from typing so much,
I got tendinitis in my hands. I thought, what am I going to do here? The Vice President came to me and said, “look, the interns, they don’t
know how to do their jobs. “Nobody has time to teach them anything.” So, I even taught them
how to do their jobs. And by the end of that summer, all of them had full-time
job offers, which is rare. That had a huge impact on me. I’ve never done anything
like this on television. Being here, pitching to the Drapers, I’m feeling thrilled right now. – Welcome to Meet the Drapers. So, give us your pitch. – I’m Matt, I’m the Co-Founder
and CEO of Paragon One. We’re simplifying the path
from college to career. This is done through a
network of professionals, advisors who help students, and guide them along the right path. The idea here, is that
colleges and universities, as we know, can be quite expensive. But students are coming away,
not knowing how to land a job. We have Leo, an international student. He wants to break into consulting,
but he has two problems. First, he doesn’t know how
to actually get interviews. And second, if he gets an interview, he doesn’t know how to
do well at the interview. So, with Paragon One, he
takes a short assessment. We then guide him through, what we call, a career learning plan. He goes down each checkpoint
and he checks off goals, towards eventually getting a job offer. We’ve already seen 240%
year-over-year growth. 97% of our students are getting
job and internship offers, in the fields that they care about. We’re actually seeing an opportunity for a three billion dollar,
total addressable market, in the United States. China and India, we’re already looking at as target markets, down the road. Now, the business model is
tuition-based and subscription. I started this company
because I’ve been passionate about career education all my life. – It’s not hard to create a platform for mentors to reach students, so what’s special about you guys? – So, just getting a resume fixed, having an hour coaching
session, that’s easy. But, how do I take someone from resume, to cover letter, to LinkedIn profile? How do I do a mock interview? That’s a very complex path. And so we’ve actually built
custom workflow software, that is tailored around the experience of advisor and student. And it’s put in the seat with a coach. So, the coach monitors the entire process, from beginning to end. – Could you use that
software for other verticals? – We actually see the opportunity, now, to go, eventually to institutions. And we’re already talking to companies that work with universities. – So, I think the reason
why these type of models haven’t been able to get massive traction is ’cause they’re not as individualized as clubs and career centers on campus. But the information they
provide isn’t as scalable, or as generalizable, as a Google search, or a Wall Street Oasis, for finance. – When you actually have
this crowd-source network of information, and you
have data behind that, and you provide a really good match, that’s where magic happens. – Yeah, but then you encounter a two-sided marketplace problem, whereas, how do you get quality advisors, who have phenomenal existing careers to join your platform and mentor students? – Right, we actually manage
that problem in two ways. There’s actually a concept,
what we call a coach. Their job is to make sure the
student is staying on track. The industry advisors are people who work in different fields,
they have an expertise. But they don’t have to worry about, “am I pushing the student forward? “Am I tracking them in the right way?” – The coach sounds almost
like a virtual mom, making sure you do your career homework. – Sometimes it is. It’s that support network. – I wanna hear about
the conversation you had with your co-founders when
you decided to do this. – Byron, my Co-Founder and CTO, we’ve known each other for 15 years. And together, between
us, we’ve started, run, and exited three internet companies. We both went to MIT. Great school, but we were
both wandering aimlessly. Years later, I kept talking to him about how the students I
was coaching on the side, they were just like we were. – Further in debt, probably, than you are. – Much further in debt, right? 1.5 trillion. And, they’re doing the same things. Going to job boards,
going to career fairs. You wouldn’t tell a friend
of yours who’s working today, hey, go to this job board,
or go to a career fair. We know that’s outdated. I realized that my success today has been completely through
the network of people that I met along the way. 100%, it wasn’t what I learned at MIT. I don’t remember any of
that stuff, quite frankly. Students have this opportunity to pick the first few steps of their life. And the professional world out there is potentially closed off to them. There’s all this
knowledge that people have and people actually wanna help. So, if we can unlock that knowledge, suddenly, students are now picking a life that’s meaningful for them, and they’re not joining the workforce saying, “okay, now what do I do?” – So you really don’t
remember anything from MIT? – Look, I mean, my 6002, 6003, EE classes, those are probably ones I wanna forget. But I remember the relationships. I remember my mentors,
the very few that I had, when I realized I should
start doing this very late. – One would imagine that valuable mentors come out of broader
interpersonal interactions. It almost seems like paying for it would cheapen the experience and make it a little bit more commercial. we’re gonna be soon launching what’s known as
income-sharing arrangements. Until a student gets a job with a salary, they don’t have to pay us anything. And they only have to pay
a small percentage back over a fixed amount of time. And after that it goes away, – Quick question. You know, you talked
about India and China. It’s interesting problem, out there, because you’ve got a huge drop between the top tier in students, and then you have a lot
of people graduating but don’t have jobs. So, there is a pain point. But, what’s the stickiness,
and why do they come? And why will they stay on your platform? Because essentially it’s
the same market, right? It’s the job seeking. So what’s the– – Sure, we look at the advisors as just as important as users
on our platform, as students. Because, if they’re not engaged, they’re not gonna stick around. The payment that we give them is there to help them understand
that this is important, they take it seriously. But we do things like provide
them with agendas and content. So they don’t have to do a
lot of preparation up front. And, most importantly, we
make sure that the students, their feedback, especially
the positive feedback, comes to them often, and
they feel gratitude for that. – This is interesting, ’cause I’ve been focused on
this a lot at Draper University. The same group of people. I know you’ve got an interesting problem. Thank you so much for coming. – To Meet the Drapers. (everyone laughing) – So nice to meet you. – Which Draper is most
likely to support my company? I think Jessie could,
because, as I understand, she’s a new mom, I’m a new dad. And I’m already thinking about what world will my children go into
in the next 10-20 years. What will education look like? How will they enter the workforce? What careers will they be developing? This idea around career
education is on my mind, with regards to my children. On the other hand, I understand
that it’s very possible that Bill Draper could
see a lot of the potential for what we’re building. We attracted a lot of
international students as our early adopters, from China and from India. And so, I’m already
seeing a lot of potential to bring Paragon One into
markets like China and India. It’s funny, Punia, that you
said, it cheapens the experience if you have to pay for it. I don’t believe you should
have to pay for mentorship. There’s a difference between tutoring and then providing mentorship. And I feel like we should
just encourage a society that wants to help each other. (laughs) – Yeah, and I think the
confusion that people have, when picking their career path, it’s not just a lack of knowledge, it’s also how our education is structured in the first place. And I don’t think such a
solution really hits the core, which is why they’re never able to scale, or grow, or become prevalent. – I think it is an interesting pain point. In India, for example,
if you looked at it, you’ve got the bits and the
ITs, that all of us went to. And then you’ve got a huge drop
between the next university. These guys, kids, are coming out, and many of them don’t have jobs. I see the problem, I see the market size. What I didn’t see is ow compelling,
how different, this was. – I actually think it’s
okay to pay for mentorship. It’s just a definition thing. If you called it a trainer, or a tutor, you would expect to pay. I actually think that this is
gonna be a big breakthrough for a short time. But then the education
system is gonna catch up. I mean, at Draper University,
we are trying to lead the way toward a new way of looking at education, create your own jobs. A bunch of other schools are
trying to get education-to-job to be a closer match. And so I think that this might just be a temporary phenomenon. Putting my 15 year hat on, I’m not so sure this is
gonna be a big winner. – So should we vote? (laughs) – Well, let’s listen to
the crystal ball, first. – Paragon One. – What do we think about–
– It sounds like an airline. – It is, for a financial organization. – Yeah, exactly. (laughing) – Well, I’ve got mine. – Okay, thumbs up, thumbs
down, thumbs all around. But he was really great. – Whenever people say “I am
really passionate about this,” it makes me feel like
they’ve heard from me, saying “we like to back
people who are passionate “about what they do.” But then the second time
I asked the question, the real passion did come out. – I do think he was passionate about it. – I think he got into it.
– I think, he’s passionate about it. That’s his life path. And, good. Was this the company for you? Do you wanna back mentorship? Go to www.MeettheDrapers.com
and you can invest. You should stay tuned to listen to my dad’s
crypto chat, up next. ♪ Get your hustle goin’ ♪ ♪ Get your muscle ♪ ♪ On my bitcoin ♪ – So, I’m here with Monica Puchner. And she’s starting a company called Hilo. And somehow she wanted to
come to me for some advice. Monica, welcome to Meet the Drapers. – Thank you so much. – And tell us about Hilo. – So, we are creating a
social network for crypto. You can follow your friends,
follow their traders. And then you can see a dashboard of what people are saying
on why the price is falling. Maybe there’s regulation happening, and that’s impacting
the price in some way. – Are you launching a token that’s gonna be used on this platform, or are you gonna go with bitcoin? – We did write a white paper. We are gonna be launching a token. That will probably happen at
the later part of this year. – Good. So, here are the things
I would think about. One is, where are you gonna
be domiciling your token. And I would pick, I think most
people are going to Gibraltar or Malta, or Singapore,
and just make it simple. The lawyers have been
making hay out of this. And they’re doing a
beautiful job of creating a really complex system for you. Make it simple. – You know, you’ve been involved
in bitcoin for a long time. What kind of advice would
you give young entrepreneurs? – If the company wins, you
want your investor to win. If the token wins, you
want your investor to win. As an investor, what I
look for is aligning myself with the entrepreneur. The alignment requires me to
own a piece of the company and a piece of the token. When I look at the business,
I’m usually looking, not at the ICO that’s being sold to me. Is there a reason for
people to buy those tokens after the ICO? Is there a real marketplace
that is being created? You’re saying, hey, we’re
gonna be the community around tokens and bitcoin. And people will talk about it and then they’re gonna wanna
trade in some sort of token. Make sure there is a reason
for people to buy those tokens. What’s happening now, is all those tokens that everybody bought, now they’re all going,
“wait, what do I have here?” And then they’re selling
them into Ethereum. And Ethereum’s falling
because they’re trying to get out of Ethereum. – Yes, the ICO aside, and
the token economics aside, what should I do next as an entrepreneur? What would you do? – I would think long and
hard about the token, and how it works. Just go back to just the basics, and say, why are people
gonna buy this token? How are they gonna use the token? And just really understand
how each of those pieces work. And you’ve gotta create a network that Facebook can’t just
turn around and create. Because they have 50 billion
users or whatever it is. (both laughing) – Well, it’s the entire world, right? – And then, why are you and your team, particularly suited to do this job? And why is it somebody else isn’t? – If somebody was to ask you,
“okay, how do I learn more “about bitcoin, today, or crypto?” What would you tell them? Where would be the first place to– – Well, at first I’d
tell ’em to go buy some. And that would be a coin base. – Exactly. – Or crypto, I would say go buy a ledger. Get it out, and then look at it and say “I don’t need a bank. “I got money, right here,
on this little thing. “This is mine.” I tell people to do those two things so that they know it themselves. It’s not all hearsay. Because, whenever I look at press, I train myself to say “who wrote this?” Every time I read
something, “who wrote this?” (Monica laughs) “Why? Why’d they write it?” Instead of “oh, these are all
the facts that must be true.” My advice to you is make sure– – Keep it simple. – And make sure there’s that real reason for me to come to your site. Or, ideally, for somebody
who’s a lot younger than me, to come to your site. And your customers will grow with you, be flexible and grow with you. So, keep that in mind. – Thank you so much for the advice, Tim. This has been wonderful, and
glorious to get to meet you. Your advice is gonna really
help us traverse the next steps in our journey, so appreciate it. – Monica, it’s great to have you here. – Always a pleasure.
– And, since you’ve been on Meet the Drapers, what happens is, we adopt you. So now you are Monica Draper. Monica Puchner Draper. – Okay, Monica Puchner Draper. Okay, awesome.
– So, welcome. Thanks for being on the show. – That was fantastic. Well, guys, great companies today. What did you think? – Yeah I think it was really an interesting combination
of the companies, and very different uses for tokens. Some really valid, and some thinking how do we add a token here,
so we can raise some money? – Punia, I’m curious what
you think, token-wise. Which company do you think
had the most viable idea to launch a token. – It’s an easy choice, it was the Bucket. – Bucket, right. – It would have been so easy to force that the change you get
back is in the Bucket token. But they didn’t do that. Because they understand why a token exists in the first place. It’s not just something
you push everywhere as a marketing scheme. – Sanjay, what do you think? – You know, I think the
quality was very interesting, you know the founders that came in. They’re all trying to solve
very different large problems Interestingly, I think the
first entrepreneur that we saw is the one that we tend to like the most. (Punia laughing) It’s the most, and that’s what life is. – Let’s say we each
have a thousand dollars, how much would you put into
each of these three companies? – I would put a thousand
into the first one. (Jessie laughing) – Okay. – I think I’d put about
900 into the first one, and then I’d put 100 into the gaming, the second one, just ’cause
I don’t know the market, I don’t know how big the market can get, but it could be an interesting space. – In the gaming I’d put about 100. In the last one, I would put 200. And the rest, 700, I’d
put in the first guy, but ideally have him collapse
and combine the structures. So you’re basically investing
in a holding company. And you have a piece of both. We’ve just seen that you
wanna do these structures right up front, and not do it later when
you have different values and different investors,
and then people fighting. – I think I’d sit on my thousand dollars. (everyone laughs)
– He just loves to be comfy. Contrarian. Oh, my goodness. – It was a little bit of a setup. But, you know, that’s what we do here on Meet the Drapers.
– Oh my god. Well, great day.
– Anyway, it’s up to you. It’s up to you. Our viewers are able to
invest in these companies, and it’s only on Meet the Drapers. No other show, in the
history of the world, has ever had crowd-funding
as an opportunity. Go to www.MeettheDrapers.com
and you, you can invest. – Okay ready?
– Look at that camera, right there. – See you next time on: – [In Unison] Meet the Drapers! ♪ When Satoshi Nakamoto ♪ ♪ Made a token perfecto ♪ – There is one thing we haven’t done. Sanjay, you are a new
member of the Draper clan. – Welcome.
– You are now, you have been adopted. Welcome to the family. – Welcome to the family, Sanjay.
– Sanjay Draper. And actually, Punia,
welcome to the family. – Welcome!
– Punia Draper. – I wanted some new siblings. – I have two new adopted
members of the family. – So now will you show us your best entrepreneur dance moves? – Okay, we’re gonna do that? – Oh, interesting.
– You’re dressed for that. You can do it. (Punia laughing) – No, no, we all get it. – All out, I wanna see that. – Okay, one, two, three.
– Here comes the token. – Here comes the music. (Drapers shouting) Live long in blockchain.

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