This content was created by Tim Draper. This content was uploaded by Tim Draper. This is a YouTube video titled "What industries are in the most need of innovation | Tim Draper" (uploaded 2016-08-09) containing an English conversational talk/interview between Tim Draper and an interviewer (Speaker A). Tim Draper discusses industries ripe for disruption—finance/venture capital/banking, legal, medicine/health data and testing, pharmaceuticals, education (MOOCs), logistics, and government—highlighting technologies like crowdfunding, Bitcoin/blockchain, big data, digital identity, and examples such as Singapore and Estonia. Metadata: content_type=YOUTUBE, thumbnail provided.
What do you think— what are you looking for in these companies that have the opportunity to pitch at that Demo Day? What do you think are the industries that need to be transformed the most?
So the industries I'm thinking are ready for transformation are all of those ones where they're not making— where the service is bad and the price is high and the margins are high. So that would definitely be finance. That's my own industry, venture capital, investment banking, banking. All of us are making unusually high profits for the services that we provide. And so there are all these new technologies that are coming along that are going to potentially transform our industry. That's crowdfunding and Bitcoin and the blockchain and—
Blockchain.
Now, the blockchain's gonna also affect the legal profession. I think the legal profession is another one where we're getting bad service at a high cost. I think in medicine, there are some great opportunities in big data, having all that data up there, in low-pain blood testing. in having people be able to take back all of their own data, so your own personal data, whether it's a Fitbit or a Bodybug or it's your own blood test or it's your DNA test, you're going to have a much better idea of what is— what your own health is like and what you should and should not be taking as a drug or a therapy or whatever. So I think that's changing in a big way. And the drug companies are making outsized margins and providing very bad service. And I think in education also, there's a big opportunity. Nobody's really nailed the MOOC because the MOOC now has— if you enter one of these massively online curriculum schools, you get about 7% of the people that finish the class. And so if it's down to 7%, you know that there's 93% that are completely unsatisfied.
Right.
with a MOOC. There are— you know that if you can play with that somehow, you're going to be better off. Logistics is another area where I think there's a big opportunity because of Uber and the ability for information to be spread from multiple devices throughout the world, whether that is product logistics or shipping logistics or logistics, moving people, moving product, moving food from one place to another. That's going to be a very exciting place, and the old ways of doing things were not providing good service, and they were expensive. Then the big one, this is the big one. Big one is government. Governments now, since we can all move from country to country pretty much with ease, We also live much of our lives in the virtual world. It almost doesn't matter where we are. And so we will choose the government that is providing the best service for the lowest cost. And so it forces governments to have to improve their services, and that means that there are great opportunities for entrepreneurs to help governments provide better services. Or to— I mean, in some cases, to overthrow bad governance through social media or whatever and improve governments that way. So all governments are now on notice, and they have to provide better service just the way businesses do, or they will go out of business. And you're finding smaller governments being marginalized as people decide they want to leave those governments, and then they're saying, well, wait, if we provide better service for businesses or for people or better education or something, we're going to get more people here. Singapore is a good example of that. They created a great platform for all of us, and their population in the last 2 years has gone from 3.5 million to 5.5 million people. In the case of Estonia, the effects of what they're doing have not really happened yet. They're pioneering something, and that is that by using— just by using— allowing digital signatures in their country, they have saved 2% of their GDP. Turns out it's a big number.
Wow.
And they, just by adding digital voting, all the young people started to vote. And then they're focusing on digital identity, which means that governance for them transcends the physical border. And they are encouraging this digital identity, and it lowers the crime rate and improves the business climate. I suspect that there are— and there are some great technologies there in changing government. There's the blockchain. The blockchain is basically the perfect ledger, and a perfect ledger is exactly what a bureaucrat should be. The blockchain can actually With a little creativity, a blockchain can actually eliminate the need for many government departments and can make governments operate more efficiently, more fairly, more honestly, and, and more cheaply. So some amazing things are going to happen over the next 10 or 15 years, and all of these entrepreneurs, and maybe those out in And whoever's watching our livecast are all going to be the ones who drive that. So I'm excited about what we're going to see over the next 10 or 15 years.
