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the only place to display
your credentials.
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Contents // JANUARY 24, 2017
ON THE COVER
68 | 30 UNDER 30
Meet the Class of 2017. These 600 young
innovators30 game changers in 20 industries,
including YouTube star Tyler Oakley (at right)
are challenging the conventional wisdom and
rewriting the rules for the next generation of
entrepreneurs, educators and entertainers.
EDITED BY CAROLINE HOWARD
WITH NATALIE SPORTELLI
22 | 30 UNDER 30:
WE KNEW THEM WHEN
Our impressive track record of spotlighting
young actors, athletes and
musicians on our annual 30 Under 30 is
showcased ably by these stars.
86 | THE BLACK SHEEP

At 25, James Proud has a quarter-billion riding
on reinventing how you sleep. And this original
Thiel Fellow is determined to do it his way
or fail trying.
BY BRIAN SOLOMON
100 | THE FLIP TURN

By 30 he was the most decorated Olympian of all
time. Now he seeks to translate his prodigious
accomplishments into an everlasting brand. Can
Michael Phelps be like that other Mike?
BY MONTE BURKE
COVER PHOTOGRAPH BY JAMEL TOPPIN

JASON DERULO WEARS A LEATHER JACKET
($3,795) AND A COTTON DRESS SHIRT ($795)
BY DOLCE GABBANA AND COTTON PANTS BY
PAL ZILERI ($395).
HALSEY WEARS A LACE DRESS BY DOLCE &
GABBANA ($8,995).
MICHAEL PHELPS WEARS A LEATHER BOMBER
JACKET BY PAL ZILERI ($1,995), A COTTON
SHIRT BY CHARLES TYRWHITT ($69), TROUSERS
BY KENZO ($305), AND A SEAMASTER AQUA
TERRA 150M CO-AXIAL GMT CHRONOGRAPH BY
OMEGA ($46,300).
JAMES PROUD WEARS A MERCER CREWNECK
T-SHIRT BY ZACHARY PRELL ($65) AND JEANS
BY MARCELO BURLON ($378).
4 | FORBES JANUARY 24, 2017
VOLUME 199 NUMBER 1
JANUARY 24, 2017

24
15 | FACT & COMMENT // STEVE FORBES

Indias sickening and immoral move.
LEADERBOARD
20 | THE SECOND ANNUAL 30 UNDER 30 EUROPE
Is Europe fated to a future of economic sclerosis? Not if this group of
top young entrepreneurs has any say in the matter.
24 | ROAD WARRIOR: PILOTS WATCHES

Theres no better way to keep track of a high-ying, peripatetic career
than with a ne timepiece designed to be worn aloft.
26 | THE $4.5 BILLION CABINET

Donald Trump might have run as a populist, but he has
assembled the most plutocratic group of top advisors in
recent American history.
28 | NEW BILLIONAIRE: ROCKY ROAD

Trucking executive Jerry Moyes has built himself a ten-gure fortune
over the yearsbut his journey has been anything but a smooth ride.
29 | ON THE BLOCK: HAMILTON, AN AMERICAN AUCTION

Renewed interest in the rst U.S. treasury secretary means
a Sothebys auction of his personal effects will be popular.
Dont throw away your shot.
30 | FORBES @ 100: ROCKET MEN

In July 1958 Cold War considerations gave an economic boost
to the countrys manufacturers of missiles, rockets, submarines
and spacecraft.
31 | CONVERSATION
Ready for takeoff: Navitimer 46 Blacksteel by Breitling ($9,225).
36
Readers ride along for an in-depth look at what Ubers Travis Kalanick
is planning next; our annual Powerful People list exerts a
powerful pull.
Each day at The Kahala we are grateful for the opportunity to

make your stay unforgettable. The Spirit of Aloha has never
been greater at The Kahala. We cant wait to share it with you.
Time is precious. Spend it graciously.
1.800.367.2525
KahalaResor t.com
JANUARY 24, 2017
THOUGHT LEADERS
32 | CURRENT EVENTS // AMITY SHLAES
Revolution at Labor.
33 | INNOVATION RULES // RICH KARLGAARD

What Trump can doand cant.
STRATEGIES
36 | HARDENED TARGET
Never mind Trumps tweets. Lockheed Martin will continue to thrive,
because for the Pentagon and politicians alike, the worlds biggest defense
contractor is Silicon Valley and Detroit combined.
BY DANIEL FISHER
ENTREPRENEURS
42
40 | NEW HOUSE ON THE BLOCK

Thanks to companies like Concierge Auctions, buying a luxury home
can be done with the swipe of a nger on a smartphone.
Is this where the future of real estate sales is going . . . going . . . ?
BY SAMANTHA SHARF
42 | PET SMARTER
Four years ago Chewys college-dropout founders couldnt get a
meeting in Silicon Valley. Now theyre running one of Americas
biggest privately owned e-commerce sites.
BY SUSAN ADAMS
TECHNOLOGY
46 | TRASH TECH
Rubicon Global CEO Nate Morris is building the Uber of garbage collection,
disrupting a $60 billion industry dominated by giants.
BY ALEX KONRAD
INVESTING
58 | 401(K) INTERRUPTED
Trump says he will cut tax rates. Should you pause your
retirement plan contributions?
BY ASHLEA EBELING
46
60 | THE TRUMP DISCOUNT

Cartica Management is proving that when it comes to emerging markets,
activism is probably more important than whos living in the White House.
BY STEVE SCHAEFER
62 | PROTECT YOURSELF FROM UGLY CURRENCIES

For a modest fee, these funds will strip foreign exchange risk out of
your international portfolio.
BY WILLIAM BALDWIN
FEATURES
94 | A BOUNTIFUL MIND
A successful career as a doctor, investor and inventor wasnt enough for
Philip Frost. In his 60s he earned his rst billion globalizing the generic-medicine
business. Now, as he enters his ninth decade, Frost is tirelessly
adding to his fortuneand giving it awaywith Buffett-esque skill.
BY MATT SCHIFRIN
112 | THOUGHTS
86
On tomorrow.
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I JUST RETURNED FROM ASIA,

my sixth or seventh trip there in
the past two years, I cant seem to
keep track anymore. I always go to
Hong Kong, where were building a
digital editorial operation to cover
the region. This time I also stopped
in Shanghai. In November we relaunched a Chinese FORBES magazine. Each time I visit I come away
with a new revelation, always revolving around a single
wordBIG. On this trip, I was struck by the sheer magnitude of Chinas digital landscape.
The Chinese powerhouses Baidu, Alibaba and Tencent,
called BAT, are well-known. During a daylong strategy
meeting at our spanking new Shanghai office, which looks
out over the citys old train station (were atop a building
mostly leased to WPP, the worldwide ad agency), I heard
some startling statistics. Every 60 seconds in China Baidu
racks up 4.2 billion search queries, Tencents QQ transmits
11 billion messages and the app Miaopai plays 500,000
short videos. Its no wonder that Chinese social, video and
digital-commerce companies few of us have ever heard of
carry valuations of billions, if not tens of billions, of dollars.
The Asian digital ad market is also growing in interesting ways. Inuencer marketing is on the rise much like it is
in the United Statesexcept the numbers seem unimaginable, at least to me. Big brands in America now work
with YouTube stars and others to get their messages out to
young audiences. These inuencers are building nice little
careers. In China, a single inuencer can reach tens of millions of consumers, commanding $100,000and more
for a single post (yes, one post). In the U.S., cash like that
translates into a multifaceted ad campaign.
Asia is still in good part about aging tycoons and their
childrenin banking, property development and other
industries. Increasingly, a new wave of entrepreneurs is
making its markin terms of innovation, job creation and,
of course, wealth generation. To say that Asia, and China
in particular, is complicated for media companies like ours
is a breathtaking understatement. Yet, as FORBES enters its centennial year, were determined to nd our way
forward, extending our message of entrepreneurship and
aspiration to the youth changing the face of China and so
many other Asian nations. F
Can a simple sheet of paper renew

your faith in humanity?
Putting thoughts on paper can be a powerful way to express feelings, heal
and inspire. We asked five people whose lives have been touched by violence
or cruelty to write Letters of Peace that reflect their enduring faith in humanity.
Meet the authors, read their letters and learn more about the power of paper.
Visit howlifeunfolds.com/lettersofpeace | #lettersofpeace
A charitable donation was made on behalf of the author of this letter.

2016 Paper and Packaging Board.
From the Makers of Paper and Packaging
FACT & COMMENT

With all thy getting, get understanding
INDIAS
SICKENING AND IMMORAL MOVE
BY STEVE FORBES, EDITOR-IN-CHIEF
IN NOVEMBER Indias government

perpetrated an unprecedented act that
is not only damaging its economy and
threatening destitution to countless
millions of its already poor citizens
but also breathtaking in its immorality.
Without any warning India abruptly
scrapped 85% of its currency. Thats
right: Most of the countrys cash
ceased to be legal tender. Shocked
citizens were given only a few weeks
notice to take their cash and turn it in
at a bank for new bills.
The economic turmoil has been compounded by
the fact that the government didnt print a sufficient
amount of the new bills, lest word leak out as to what
was about to take place. The new bills are also a different size than the old ones, creating a huge problem
with ATMs. Even though India is a high-tech powerhouse, hundreds of millions of its people live in dire
poverty. Many workers are leaving the cities to go back
to their villages because so many businesses are closing. Countless companies are having difficulty meeting payroll, as they cant get the cash to do so. The real
estate market has tanked.
Indias economy is based mostly on cash. Moreover,
much of it operates informally because of excessive
rules and taxes. The government bureaucracy is notorious for its red tape, lethargy and corruption, forcing
people to get by on their wits.
The World Banks annual survey, Doing Business,
measures how difficult it is to start and manage a business in 190 countries, using such metrics as what it
takes to set up a legal business, obtain construction
permits and get electricity. India ranks among the
worst in the world in these areas.
Not since Indias short-lived forced-sterilization
program in the 1970sthis bout of Nazi-like eugenics
was instituted to deal with the countrys overpopulationhas the government engaged in something so
immoral. It claims the move will ght

corruption and tax evasion by allegedly ushing out illegal cash, crippling
criminal enterprises and terrorists
and force-marching India into a digitized credit system.
News ash: Human nature hasnt
changed since we began roaming this
planet. People will always nd ways
to engage in wrongdoing. Terrorists
arent about to quit their evil acts because of a currency change. As for the
digitization of money, it will happen in its own good
time if free markets are permitted. And the best cure
for tax evasion is a at tax or, at the least, a simple,
low-rate tax system that renders tax evasion hardly
worth the effort. Make it easy to do business legally
and most people will do just that.
India is the most extreme and destructive example
of the anticash fad currently sweeping governments
and the economics profession. Countries are moving
to ban high-denomination bills, citing the rationales
trotted out by New Delhi. But theres no misunderstanding what this is truly about: attacking your
privacy and inicting more government control over
your life.
Indias awful act underscores another piece of immorality. Money represents what people produce in
the real world. It is a claim on products and services,
just as a coat-check ticket is for a coat left at the coat
check in a restaurant or a ticket is for a seat at an
event. Governments dont create resources, people
do. What India has done is commit a massive theft of
peoples property without even the pretense of due
processa shocking move for a democratically elected government. (One expects such things in places
like Venezuela.) Not surprisingly, the government is
downplaying the fact that this move will give India a
onetime windfall of perhaps tens of billions of dollars.
By stealing property, further impoverishing the
JANUARY 24, 2017
FORBES | 15
FORBES
FACT & COMMENT
STEVE FORBES
least fortunate among its population

and undermining social trust, thereby poisoning politics and hurting future investment, India has immorally
and unnecessarily harmed its people,
while setting a dreadful example for
the rest of the world.
What India must do to fulll its
desire to become a global powerhouse is clear: slash income and
business tax rates and simplify the
whole tax structure; make the rupee
as powerful as the Swiss franc; hack
away at regulations, so that setting up
a business can be done with no cost
and in only a few minutes; and take
a supersize buzz saw to all the rules
that make each infrastructure project
a 100-year undertaking.
Can the EU Survive?

Is Italy on its way out of the EU? Italian voters rejection last month of a
referendum on alleged governance
reform led to the fall of the government and forced that question into
play. Support is growing for an exit,
but that option isnt a solution for
Italys woes.
Italys problemas is the case with
many of the other EU countriesis
structural. The aws will still be
there if Italy goes out on its own. Its
banking system is a mess; one way or
another, bailouts are coming. Government debt is ballooning to Greecelike proportions. Internal reforms
big tax cuts and radical simplication
of the whole tax code, less rigid
antigrowth labor laws, less suffocating regulations and a less bloated
bureaucracyhave been minimal,
which is why economic growth is
virtually nonexistent.
A breakup of the EUand Italys
pulling out would mean just that
would be a geopolitical disaster. All
the demons that have been bottled up
since WWII would be let loose. Combined with an increasingly belligerent China in the Pacic, the situation
would be too ugly to contemplate.
Mismanaging
The Debt
In an era of epic economic malpractice,
one operation that has received scant
attention is the U.S. Treasury Departments mismanagement of the national
debt. With interest rates abnormally
lowthanks to their suppression by
the Federal Reserveyoud think
Uncle Sam would go heavy on the issuance of long-term bonds to lock in
ultralow costs. It wasnt so long ago
that a 30-year Treasury bond would
routinely yield more than 7% instead of
what it has paid recently: less than 3%.
But the geniuses at Treasury
shortened the average duration of
government debt to ve years. This
was a short-term expedient, articially cutting the cost of nancing
the debt and thereby freeing up more
money for wasteful domestic programs. The move was all too typical of
the Obama regime in all facets of its
governance. (The most egregious example of this destructive myopia was
Obamas precipitous withdrawal of
U.S. forces from Iraq in 2011 in order
to bolster his reelection chances.
Look, America, Obama proclaimed,
the war on terror is winding down,
and weve won. But the reality was
that our painful victory over Islamic
terrorism in Iraq was thrown away. In
the ensuing vacuum ISIS emerged.)
Interest rates are moving up. If the
bulk of Donald Trumps tax, health
and regulatory proposals come to
pass, the U.S. economy will genuinely
expand again; demand for credit will
grow, as will the cost of gaining access
to it. Washingtons interest outlays
will mushroom in the years ahead.
Thankfully, theres still time to
issue signicant amounts of long-term
bonds with historically low costs. In
fact, we should follow the examples
of other countries that have issued
debt with really long maturities. Economic guru Larry Kudlow suggests
that Uncle Sam auction off bonds
with 100-year maturities. If Mexico,

Ireland and Belgium can pull this
offand they haveso can we. Austria
issued one for 70 years, and Britain
oated a number of issues with maturities of 40 to 50 years.
When Donald Trump takes ofce, the Treasury should announce
that within the next 15 months or so
Uncle Sam will be selling upwards
of a trillion dollars in century bonds.
Would such a long-maturity bond
sell? Thered be a stampede for them.
Thanks to the Federal Reserves
disastrous buying of several trillion dollars worth of U.S. bonds and
mortgage-backed securities, there
is a shortage of bonds in nongovernment hands. This shortage, combined
with superlow interest rates, has
wreaked havoc with pension funds
and insurance companies. These
entities and others with long-term
liabilities badly need safe bonds with
normal interest rates in order to
meet future obligations.
The new administration should
also prevent the Fed from purchasing
any of these securities. In addition,
the Fed should be instructed to wind
down its $4 trillion-plus portfolio.
When a bond matures, the principal
should not be reinvested; instead, it
should ow back into the private credit
markets, where it can be productively
put to work to expand the economy.
By the way, even though quantitative easing formally ended, our
mistake-prone central bank has been
extending the duration of its bonds.
Monetary expert David Malpass has
correctly emphasized that the end
result of this perverse exercise has
been not only a shortage of bonds
but also a lack of credit for small
and new businesses. In other words,
both Uncle Sam and the Fed have
been doing the opposite of what they
should have been doing: The federal
government has been shortening the
maturity of its debt, and the Fed has
been elongating the maturity of its
bond holdings. F
LeaderBoard
JANUARY 24, 2017
Think youve never heard

a song by Jason Derulo?
Youre probably wrong. He
has sold 50 million singles,
streamed 1 billion tracks
on Spotify and racked up
2 billion YouTube views
with earworms such as
Whatcha Say and Want
to Want Me. He also grosses
$232,000 per tour stop
just one of our 30 Under
30 alumni (Class of 2016)
cashing in on entertainment.
PAGE 22
EUROPES TOP YOUNG

ENTREPRENEURS 20
HIGH-FLYING PILOTS
WATCHES 24
THE $4.5 BILLION
PRESIDENTIAL CABINET 26
HIS TRUCKS HAULED A
BILLION BUCKS 28
HAMILTON UNDER THE
HAMMER 29
FORBES @ 100, 1958:
THE MISSILE ECONOMY 30
JASON DERULO WEARS A VELVET

TUXEDO JACKET ($2,695), WOOL
TROUSERS ($1,195) AND SILK BOW
TIE ($185) BY DOLCE & GABBANA;
COTTON SHIRT BY CHARLES
TYRWHITT ($69). YACHT-MASTER II
WATCH WITH DIAMONDS BY ROLEX.
PHOTOGRAPH BY JAMEL TOPPIN

JANUARY 24, 2017 FORBES | 19
LeaderBoard
SCIENCE AND HEALTH CARE
ARANTXA UNDA 29, SPAIN
CEO
SIGESA
Unda abandoned a budding career
in investment banking to pursue a
more fullling one in health care. After
earning a Harvard M.B.A., she acquired a
41% stake in Sigesa, a medical-software
company founded by her father in the
late 1990s, and took over as its CEO.
INDUSTRY
JORDAN DAYKIN 21, U.K.
TECHNOLOGY
EDWARD BOYES 27, U.K.
Founder
Cofounder
GRIPIT FIXINGS
HELLOFRESH
At 18 Daykin became the youngest person

to secure an investment on Dragons
Denthe U.K.s version of Shark Tankfor
GripIt, a small device that makes simple the
usually maddening act of hanging art and
xtures on plasterboard walls. Three years
later his company is valued at $31 million.
A food-subscription business that

sends pre-apportioned ingredients
and cooking instructions to
consumers doorsteps weekly,
HelloFresh offers quick and
healthy meals developed by chefs
and nutritionists. Boyes is the
companys U.S. CEO, based in
New York City for the time being
and charged with expanding its
American operations.
30 UNDER 30
Old World,
Young Promise
RETAIL AND
E-COMMERCE
PHILIPP MAN
25, GERMANY
Cofounder
IS EUROPE CONSIGNED to a grim future of economic sclerosis? Not if the

members of our second annual 30 Under 30 Europe list are any indication.
In addition to receiving thousands of nominations online, our reporters
combed the Continent for leading innovators in all elds. They then handed
over their winnowed short lists to panels of industry-leading judges, who
made the nal selections: 300 of Europes boldest young entrepreneurs in
ten categories that encompass the arts, nance, technology and more.
The cross-section of that august group you see here gathered in London
last month to talk shop and trade insights. Theyre a welcome rebuke to
anyone unduly bearish on Europes future.
CHRONEXT
An online marketplace for
new and pre-owned luxury
watches, Chronext (which
has landed $18 million in
venture funding) makes the
experience of buying a highend timepiece online more
streamlined and secure. The
son of Russian immigrants
to Germany, Man launched
his rst venture, a clothing
retailer, at age 17.
MEDIA
EMILIE TABOR
28, THE NETHERLANDS
Cofounder
IMA (INFLUENCER
MARKETING AGENCY)
The company Tabor founded
with her friend Maddie
Raedts is helping an array of
notable brands gure out their
European youth-marketing
strategy. Through its network
of more than 6,000 bloggers,
YouTubers and other socialmedia personalities, IMA gives
such clients as Nike and Calvin
Klein insight into Europes
young consumers.
EDITED BY ALEXANDRA WILSON, KATHRYN DILL AND STEVEN BERTONI

REPORTED BY MADELINE BERG, ANDRS CALA, STEFANIA DIGNOTI, THOMAS FOX-BREWSTER, ALEX KNAPP, SHAENA MONTANARI, PARMY
OLSON, NATALIE ROBEHMED, LEONARD SCHOENBERGER AND NATHANIA ZEVI
FINANCE
ABBAS KAZMI 24, U.K.
Founder
COLLEGIATE CAPITAL
Kazmi raised $100 million
to seed Collegiate Capital, a
venture rm that focuses on
ntech, cybersecurity, energy
and gaming; hes Europes
youngest founder and
managing partner of a VC
fund of that size. He started
his rst business, a game
called U-Design, at age 16;
he also now serves as CEO
of the Oxford Accelerator, a
business incubator hosted by
the prestigious university.
SOCIAL ENTREPRENEURS
FILIPPO YACOB 29, ITALY
Cofounder
PRIMO TOYS
Inspired by the birth of his son, Yacob invented Cubetto,
a wooden robot that teaches children as young as 3 the
rudiments of codingthe kids program symbols that
govern the robots movementwithout increasing screen
time. Primo Toys pulled off the largest educationaltechnology crowdfund in Kickstarters history, raising
nearly $1.6 million from backers in 96 countries.
ENTERTAINMENT
MICHAELA COEL 29, U.K.
Actress and writer
The London-born Coel writes
and stars in Chewing Gum,
a comedy that premiered
on U.K. television but has
garnered global acclaim after
its acquisition by Netix.
Her role as the pious virgin
Tracey Gordon earned her
a BAFTA (a British Oscar,
essentially) for best female
performance in a comedy.
She also acts in theater and
on the British television show
Aliens.
LIFESTYLE
DAVID ANDRS 29, SPAIN
POLICY
GUILLAUME CAPELLE 29, FRANCE
Cofounder
Chef and owner
SINGA
ABAC RESTAURANT & HOTEL;

RESTAURANT SOMIATRUITES
Capelle founded Singa in 2012 to help refugees acclimate

to Europe. Last year it provided intercultural training for
some 2,000 new arrivals in France. (It also has operations
in Belgium, Germany and Switzerland.) Among its
initiatives is a startup incubator for refugee entrepreneurs
that accepts 30 applicants a year; one company it recently
graduated was WelcomHere, an online platform whose
network helps refugees nd homes and jobs in France.
In addition to his role as chef de cuisine for the

two-Michelin-starred ABaC Restaurant & Hotel in
Barcelona, Andrs runs his own place, Restaurant
Somiatruites, a Catalan eatery just up the road in
Igualada. For two years running, he has been named
best of the Spain/Portugal region by the Europewide San Pellegrino Young Chef Competition.
ARANTXA UNDA: BLOUSE BY CAROLINA HERRERA; TROUSERS AND SHOES BY MASSIMO DUTTI. PHILIPP MAN: SUIT BY HACKETT; SHIRT BY ERMENEGILDO ZEGNA; SHOES BY
CHURCHS. JORDAN DAYKIN: SUIT BY HUGO BOSS; SHIRT BY STUDIO JEFF BANKS; SHOES BY LOUIS VUITTON. EDWARD BOYES: SHIRT BY J.CREW; TROUSERS AND SHOES BY TED
BAKER. EMILIE TABOR: BLOUSE AND SKIRT BY SUI STUDIO; SHOES BY ZARA. MICHAELA COEL: CLOTHING BY TOPSHOP; SHOES BY OKI KUTSU. DAVID ANDRES WEARS HIS OWN
CHEFS JACKET. ABBAS KAZMI: JACKET BY ARMANI COLLEZIONE; SHIRT BY BURBERRY; TROUSERS BY J BRAND; SHOES BY FERRAGAMO. FILIPPO YACOB: JACKET BY BEN SHERMAN;
TROUSERS BY LEVIS; SHIRT BY MUJI; LOAFERS BY FRATELLI ROSSETTI. GUILLAUME CAPELLE: SUIT BY NOUVEAU ATELIER; TIE BY CELIO; SHIRT BY PINK; SHOES BY BEXLEY.
PHOTOGRAPHED IN LONDON BY LEVON BISS FOR FORBES. FORBES STYLE DIRECTOR: JOSEPH DEACETIS; STYLIST: LOUISE SYKES; STYLIST ASSISTANT:
LOUISE COLLINS; HAIR & MAKEUP: MARK ENGLISH; HAIR & MAKEUP ASSISTANT: LYDIA JEFFCOAT;
MICHAELA COELS HAIR: KEVIN FORTUNE. PRODUCTION: PHILLIPA COOPER.
LeaderBoard
30 UNDER 30
We Knew
Them When
ADELE. JENNIFER Lawrence. Halsey (shown
here). On our annual 30 Under 30 listssee page
68 for this years iterationweve scored an
impressive track record of spotlighting young
actors, athletes and musicians who were on the
cusp of achieving still greater fame and fortune.
ADELE
30 Under 30 debut: 2012
Then: 2 Grammys
Now: 10 Grammys
LEBRON JAMES
Then: 1 NBA championship ring
Now: 3 rings, plus a budding
Hollywood career
KENDRICK LAMAR
Then: 0 Grammys,
0 White House visits
Now: 7 Grammys,
2 White House visits
JASON DERULO
Then: Had played Londons
20,000-seat O2 as a co-bill
Now: Played the O2 as a solo
headliner
HALSEY
Then: Top song (New
Americana) peaked at No. 60
on Billboard Hot 100
Now: Top song (Closer,
performed with the
Chainsmokers) spent
12 weeks at No. 1
HALSEY WEARS A JERSEY TOP BY

GIVENCHY ($750), A LEATHER MINISKIRT BY LISA PERRY ($695), PATENT
LEATHER BOOTIES BY GIUSEPPE
ZANOTTI DESIGN ($995) AND A GOLD
ROSARY NECKLACE ($975) AND
TORTOISESHELL SUNGLASSES ($240)
BY DOLCE & GABBANA.
BY ZACK OMALLEY GREENBURG WITH MADELINE BERG AND NATALIE ROBEHMED

JAMEL TOPPIN FOR FORBES
JENNIFER LAWRENCE
Then: 0 Hunger Games lms
Now: 4 Hunger Games lms
and a new role as Hollywoods
top-earning actress
Slack is where work happens, for millions

of people around the world, every day.
LeaderBoard
ROAD WARRIOR
1. 1858 Automatic Small

Second by Montblanc ($3,045).
2. BR03-93 GMT by Bell &
Ross ($3,700). 3. Engineer
Hydrocarbon AeroGMT by Ball
($3,499). 4. Pilot Type 20 Extra
Special by Zenith ($6,700).
5. Big Pilots Watch by IWC
($12,900).
Flight Time
WHAT BETTER WAY to keep track
of a high-ying career than with
a pilots watch? The origin of the
style dates back to the dawn of ight
itselfwhen Louis Cartier designed
the Santos in 1904 for his friend
Brazilian aviator Alberto SantosDumontand the signature elements
of the timepiece have remained relatively unchanged. A pilots watch typically has a big, clean dial with large,
legible numbers. The most common
complication is usually a GMT (for
Greenwich Mean Time), which
monitors two time zones. Because,
as any good pilot knows, time ies.
PHOTOGRAPH BY DAVID ARKY; CREATIVE STYLE DIRECTOR: JOSEPH DEACETIS; STYLE ASSOCIATE: JUAN BENSON
BY MICHAEL SOLOMON
Classroom.
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understanding how we perfected that customer experience? Well, we think we offer you the most amazing
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Visit DisneyInstitute.com and see how we can help transform the way you think about your customer
experience, no matter your business.
LeaderBoard
BILLIONAIRES
The $4.5 Billion Cabinet

A POPULIST WAVE may have propelled Donald Trump to the nations highest office, but he is proving to be no
man of the people. Trump has already proposed what appears to be the wealthiest Cabinet in modern U.S. history, a
collection of elites that includes a billionaire heiress, Exxon Mobils CEO, a former Goldman Sachs partner and an
investor who made millions off underwater mortgages during the nancial crisis. All told, Trumps Cabinet is worth
an estimated $4.5 billion, 60% more than Barack Obamas second-term Cabinet. That sum doesnt include Trumps
own fortune or that of any billionaire officials outside the Cabinet, such as Army secretary pick Vincent Violaand
as of press time, Trump still has two picks (the secretaries of agriculture and veterans affairs) to make.
BETSY DEVOS
$1.25 BIL
RYAN ZINKE
Secretary of Education
$800,000
Secretary of the Interior
The Montana
congressman
owns a number of
rental properties in
Whitesh, Montana,
his hometown (pop.
7,073); an art collection worth at least
$100,000; and
a garage full of automobiles that includes
a 1938 Cadillac.
REX TILLERSON
$325 MIL
Secretary of State
Tillerson started at
Exxon Mobil straight
out of the University
of Texas. As chairman
and CEO he accumulated more than
2.6 million shares of
company stock and
hefty pay packages
(nearly $90 million
over the past three
years alone).
Daughter-in-law of
Amway cofounder
Richard DeVos, shes
married to Richard
Jr., the eldest of
DeVos four children;
FORBES estimates
that the couple has
about one-fourth of
the family fortune. She
previously served
as chair of the
Michigan GOP.
JOHN KELLY
WILBUR ROSS
$2.5 BIL
$4 MIL
Secretary of Commerce
Secretary of
Homeland Security
For a quarter-century,
Ross ran Rothschilds
bankruptcy advisory
business before starting his private equity
rm, WL Ross & Co.,
in 2000. He sold it to
investment management rm Invesco
in 2006 for some
$375 million while
staying as chairman
and chief strategy ofcer. He made millions
servicing subprime
mortgages during the
nancial crisis.
Kelly spent over four

decades in the military, rising to become
a four-star general.
He has two sons
whove served, one of
whom died in combat
in Afghanistan. The
bulk of his wealth
comes from his government pension.
RICK PERRY
$2 MIL
Secretary of Energy
JEFF SESSIONS
$6 MIL
Attorney General
Sessions, a senator
from Alabama, owns
more than 1,500 acres
in the western part
of the state that are
worth at least $2.5
million. The rest of his
fortune is in Vanguard
mutual funds and
municipal bonds.
Since Perry left the

Texas governors office
in 2015, he has banked
at least $100,000 from
speeches and another
$250,000 consulting
for a Caterpillar heavy
equipment dealer.
About 20% of his
portfolio is in oil-andgas partnerships and
energy stocks.
SOURCE: TIM VOIT, CERTIFIED QDRO SPECIALIST WITH THE AMERICAN ASSOCIATION OF CERTIFIED QDRO PROFESSIONALS.
ESTIMATES BASED ON MOST RECENTLY AVAILABLE FINANCIAL DISCLOSURE FORMS; INCLUDES SPOUSES ASSETS.
OBAMAS
CABINET
$2.75 BIL
DONALD TRUMP
Trumps gilded
Cabinet raises the
bar, but Obamas
inner circle isnt
exactly full of
paupers. All but three
are millionaires; his
commerce secretary,
Penny Pritzker, is a
Hyatt heiress and a
billionaire.
$3.7 BIL
Americas rst billionaire

president brings to the
Oval Office unprecedented potential for
conicts of interest just
about everywhere from
Chicago and Istanbul to
Scotland and the Philippines. More than half of
Trumps fortune is tied up
in Manhattan real estate.
MIKE PENCE
$800,000
BEN CARSON
$29 MIL
Secretary of Housing and

Urban Development
The neurosurgeon
earned millions
from six bestselling
books, media roles
at Fox News and the
Washington Times and
numerous speaking
gigs. He accumulated
more than $6 million
worth of stock serving as a director at
Kellogg and Costco
before leaving their
boards in May 2015 to
run for president.
Vice President
The Indiana governor and former

congressman lives
modestly and has
largely stayed away
from commercial
gigs. He gets most
of his wealth from
his state and federal
pension accounts;
the father of three
also owes at least
$95,000 in Parent
Plus student loans.
ELAINE CHAO
$24 MIL
Secretary of
Transportation
TOM PRICE
$10 MIL
STEVE
MNUCHIN
$300 MIL
ANDY PUZDER
Secretary of Treasury
Secretary of Labor
After buying subprime

Secretary of Health and
JAMES MATTIS mortgage lender IndyHuman Services
Married to Senate
$5 MIL
Mac for $1.6 billion
The orthopedic
majority leader Mitch
Secretary of Defense
in 2009 with a group
surgeon and Georgia
McConnell, Chao is
Most of his fortune
of billionaire investors,
congressman owns a
the daughter of a
comes from his miliMnuchin sold it to
medical office building
shipping magnate,
tary salary and penCIT Group for
in his home state, plus
and the bulk of her
sion (nicknamed the
$3.4 billion six years
and husbands wealth rental apartments and
warrior monk, Mattis later. A former Goldcondos in Virginia,
comes from her family
is a four-star general man Sachs partner, he
Washington, D.C.,
(including an investwho retired in 2013). also dabbles in nancNorth Carolina,
ment account worth
The ex-Marine sat on
ing movies (Avatar,
South Carolina and
at least $5 million
the board of disgraced
American Sniper).
Tennessee.
given to the couple).
blood-testing unicorn
The Harvard grad sits
Theranos and is still
on four corporate
a director of General
boards, including
Dynamics.
Wells Fargos.
$45 MIL
After negotiating a
deal to help Carls Jr.
founder Carl Karcher
escape nancial trouble in the early 90s,
Puzder eventually
became CEO of CKE
Restaurants, parent
company of Carls Jr.
and Hardees, and has
earned at least $25
million in salary and
bonuses since 2000.
REPORTING BY CHASE PETERSON-WITHORN AND JENNIFER WANG WITH KEREN BLANKFELD, DANIELA SIRTORI, CHLOE SORVINO,
MICHELA TINDERA AND KATE VINTON. ILLUSTRATION BY JOE MCKENDRY
LeaderBoard
NEW BILLIONAIRE
Rocky Road
Jerry Moyes built one of Americas largest
trucking concernsand a three-comma
fortunebut its been far from a smooth ride.
-B
AG
GE
DROPBOX
1.5
E CHIP
THERANOS
0.2
SLACK
2.9
BLU
KIK
1.1
RE
EO
TU
T O TA L W
RIT
ID EXIT T
SOL
EN
FU
U
YO
IT
BA
NET WORTH: $19 BILLION

The SoftBank CEOwhile
standing in Trump
Tower after meeting
with the presidentelectannounces his rm
will invest $50 billion
in American startups.
Company shares jump
14%; Son overtakes Uniqlo
boss Tadashi Yanai as
Japans richest man.
WHICH UNICORNS will become tomorrows blue

chips? Our ongoing poll of the worlds top venture
capitalists provides an exclusive take on the long-term
prospects of these billion-dollar startups. The VCs
couldnt help but kick the shins of Kik, a messaging app.
+$2.6 BILLION
Middling Message
MASAYOSHI SON
UNICORN METER
FF
SCORECARD
NEW BILLIONAIRE BY DANIELA SIRTORI-CORTINA

ILLUSTRATION BY AARON SACCO; TOMOHIRO OHSUMI/BLOOMBERG (BOTTOM)
IN 1966 Jerry Moyes founded Swift Transportation

with his father and one truck, moving imported steel
through Los Angeles to Arizona and then Arizona cotton back to California. In the ensuing decades he built
it into a $4 billion (sales) business with 20,000 trucks,
amassing a $1 billion fortune. He still owns about half of
Swifts stockit went public in 1990but has pledged
64% of his stake as collateral for personal loans.
The road to this point has been bumpy. In the early
2000s Moyes came under re for arranging contracts
between Swift and a truck-leasing rm he owned. He
stepped down as Swift CEO in 2005 after an insider-trading case in which he admitted to no wrongdoing but paid
$1.5 million to settle with the SEC. A year later a lawsuit,
ultimately dismissed, sought to make him repay $110 million he borrowed from a trust set up for his children.
After leading a buyout that took Swift private in 2007,
he relisted it on NYSE in 2010 before announcing his retirement this past Septemberafter investors questioned
if a stock-buyback plan was intended primarily to shore
up the value of his Swift stake. Industry people believe
Jerry Moyes could be one of the best trucking executives
ever, says Jeffrey Kauffman, an analyst at Aegis Capital.
But right or wrong, there was a discount attached to
Swift shares because of some nancial decisions made
while Jerry was running the company.
ON THE BLOCK
Hamilton: An
American Auction
BRING PLENTY OF Benjamins when
Sothebys auctions an archive of Alexander
Hamiltons letters and manuscripts in
New York on January 18. Thanks to the
smash Broadway musical, interest in
documents and memorabilia from the
Founding Father without a father is
expected to be high.
Included in the sale are love letters
between Hamilton and his wife, Eliza,
as well as the condolence note his
father-in-law, Philip Schuyler, sent to
his daughter after Americas rst secretary of the Treasury was killed by
Aaron Burr in an 1804 duel (estimated to sell for $15,000 to $20,000).
For those who want something
even more personal, Sothebys is
auctioning a lock of Hamiltons hair
with a letter from Eliza, estimated
to bring $15,000 to $25,000.
Dont throw away your shot.
SCORECARD
JOHN KAPOOR
$230 MILLION
NET WORTH: $1.6 BILLION
Two months after FORBES
cast a critical eye on
Kapoors company, Insys
Therapeutics, federal
prosecutors say six of its
former executives conspired
to bribe doctors to prescribe
a powerful narcotic to
patients who didnt need it.
Insys stock tumbles 29%.
RICHEST BY STATE
Massachusetts
POPULATION: 6.8 MILLION
2015 GROSS STATE PRODUCT: $477 BILLION (2% GROWTH)
GSP PER CAPITA: $70,167 (RANKS NO. 6 NATIONWIDE)
RICHEST: ABIGAIL JOHNSON, $14.3 BILLION
ON THE BLOCK BY MICHAEL SOLOMON; RICHEST BY STATE BY MICHELA TINDERA

ILLUSTRATION BY CHRIS LYONS; KAY NIETFELD/DPA/NEWSCOM (BOTTOM)
IN DECEMBER Abigail Johnson, 55, took full command of her

familys Boston-based Fidelity Investments, adding the chairman
title her father held for nearly four decades to the CEO job she
has done since 2014.
With $2.1 trillion under management and $5.6 trillion under
administration, Fidelity is the worlds fourth-largest asset manager and the U.S. top 401(k) administrator. But Johnson, a Harvard
M.B.A. who joined Fidelity as an analyst in 1988, must execute a
tricky balancing act to protect its margins and market share.
The rm built its reputation with actively managed mutual
funds (think Peter Lynch and Magellan). Yet investors have been
moving to low-cost, market-tracking index funds. In July Johnson dropped fees on 27 index funds and ETFs, in some cases
undercutting Vanguard, the indexing pioneer and leader. Fidelitys 500 Index Fund, with an investor-class expense ratio of
just 0.09%, has grown to $106 billion in assets, edging past
its largest actively managed offering, Contrafund, which picks
large-cap growth stocks and charges 0.71%.
LeaderBoard
FORBES @ 100
FAST-FORWARD
As FORBES September 2017 centennial approaches,

were unearthing our favorite covers.
1956: Wall Street is almost entirely a boys

club, and its a breakthrough when Merchants
Exchange in St. Louis begins to consider
allowing women on its trading oor.
2016: Although nance has become far more
diverse overall, women still occupy less than a
third of the industrys top jobs despite making
up about half of its lower ranks.
July 1, 1958: Rocket Men

EVEN IN THE toy stores you see nothing
but space helmets, rockets, satellites, space
ships and guided missiles, remarked George
M. Bunker, CEO of Martin Co. Government
officials had a similar xation on missiles
and rockets. Those often nuclear-tipped projectiles made up more than 50% of Martins
backlogged orders, up from virtually nothing
ve years earlier. Martin had struggled to
nd its way once military-aircraft spending
dried up after World War IIit didnt have a
strong consumer aviation business to fall back
onand Bunker had ambitiously pushed it
into missiles.
The companys trajectory hadnt been
awless, however. One early Martin missile, a
10-ton, seven-story device, rose from its Cape
Canaveral launching pad with Americas
rst earth satelliteand exploded shortly
after ignition. Still, Bunker looked ahead to
lucrative government contracts, such as the
$900 million Titan project (nearly $8 billion
today), and vowed to stay the course: The
companies that went into consumer goods
as a lot of people said we should donow are
coming into defense work.
Martin would merge with American
Marietta three years laterand then with
Lockheed in 1995, creating one of the worlds
largest defense contractors (see p. 36).
AMAZING AD
Smooth Sailing
Power steering! In submarines!
THE EDITORS DESK
Cold War Commentary
The American people have

spent and will continue to spend
countless billions to insure our
nation and the free world against
military enslavement by Sovietled Communists.
Malcolm S. Forbes
BY ABRAM BROWN
NY DAILY NEWS ARCHIVE VIA GETTY IMAGES; BETTMAN/GETTY IMAGES
Finances Iron Ceiling
CONVERSATION
THE ODD COUPLE

MIGUEL HELFTS December 30 cover story offered a glimpse into the philosophy of rigorous
experimentation that animates Uber cofounder
and CEO Travis Kalanick. But as the rm, valued
at $68 billion but booking annual losses in the
ten-gure range, moves to reinvent global transportation, many readers questioned its nancials. How about trying to turn a prot before
expanding? wrote Gurinder Chahal. Paper
billions dont mean much. Alex Candee offered a
spot analysis of its business model: Its latest app
update has privacy advocates freaking out, but
[it] showcases that Uber = a data company that
does transport. Peter Rieder, meanwhile, praised
Kalanicks intensity, for which hes often derided:
Self-interest and obsessive dedication create the
foundation for entrepreneurial success.
THE INTEREST GRAPH
Fittingly, much of the chatter

about our Powerful People list
focused on Nos. 1 (Vladimir Putin)
and 2 (Donald Trump).
JOE SCARBOROUGH,
MSNBCS MORNING JOE:
Vladimir Putin stands alone
as the dictator. Has there been
anyone as powerful as this guy
in recent history?
MARK HALPERIN, MORNING

JOE: Ill take issue with one,
[No. 69] Mike Pence. I predict
by April youll run an editors
note saying that guys in the
top 20. Hes going to be really,
really powerful.
AUSTIN KENNEDY, AT
FORBES.COM: Vlads streak
is coming to an end. Next year
Donald Trump will be No. 1!
Power corrupts, but it also entices: By a huge margin, our annual list of the
globes heaviest hitters was the most popular story in our nal issue of 2016.
764,072 views
The Worlds Most Powerful People 2016
Stripe Investment Makes Cofounder the Worlds Youngest Self-Made Billionaire

180,237
Americas Richest Celebrities 2016: George Lucas Leads Steven Spielberg and Oprah
119,865
The 2017 Investment Guide: Trumponomics

28,029
How Travis Kalanick Is Building the Ultimate Transportation Machine
The tax roulette

wheel is spinning.
You have to place
your bets now, before
the marbles land.
Golf. Rhyming verse.

Even fancy card tricks:
There are innumerable
ways to earn great
fame and fortune by
entertaining people.
CHRIS SUMMERS, THE DAILY

MAIL: Facebook is widely
perceived to have had a
disastrous year, with a number
of public-relations gaffes,
but that hasnt stopped Mark
Zuckerberg from climbing
from 16th place to 10th.
25,026
14,063
The Largest U.S. Charities for 2016
The ousted Chip

Wilson retains a big
enough stake to
remain relevantand
is unable to let go of
his baby.
13,634
Original Bob Dylan Lyrics Sold at Auction for $300,000
THE BOMB
146 VIEWS
MIKE HUCKABEE, CNBCS

MORNINGS WITH MARIA:
I think the list is full of junk.
Its a terrible list. Im not on
the list, and Im very offended.
MARIA BARTIROMO,
MORNINGS WITH MARIA:
Im not surprised in terms
of Putin. Most people believe
hes the richest person in the
world because he takes a cut
of everything.
JANUARY 24, 2017 FORBES
| 31
BY ALEXANDRA WILSON
Despite a Comeback, Lululemon Cant Shake Its Gady Founder
THOUGHT LEADERS
AMITY SHLAES // CURRENT EVENTS
REVOLUTION AT LABOR
more than 100 years ago.

First, consider Andrew Puzder. As the head of CKE Restaurants, a
company that directly or through franchises employs 75,000 workers,
Puzder has more involvement with labor regulations every day than
many executives do in a lifetime. Hes worked with nonunionized
labor, not the union establishment.
Next, consider Puzders two-dozen-odd predecessors. The progressives who established the Department of Labor, Democratic or
Republican, believed that government ought to support the unions and
that wage increases were always benecial. These same progressives
also took a top-down approach, reckoning that just a few establishment partiesBig Labor, Big Business, the government and maybe an
academic or twocould and should determine whether unemployment was 3%, 5% or 10%. Nonunion workers, small-business employers, company owners and innovatorsnone of these were in the room.
The rst labor secretary, William Bauchop Wilson, set the pattern. Wilson had served as secretary-treasurer of the United Mine
Workers and then as a congressman representing the 15th district in
Pennsylvania. Wilson applied his thumb not to someones eye but to
the scales of government, tipping them toward organized labor and
pushing hard to help coal strikers in Colorado and Michigan. James
Puddler Jim Davis, Wilsons successor, came out of the steel mills
and also had a political bent, successfully running for the U.S. Senate
after his service. (Davis became cosponsor of the Davis-Bacon Act,
known for forcing wage hikes on small employer-contractors.)
Franklin Roosevelt tapped Frances Perkins. She hadnt led unions,
but Perkins had experience in both academia and government. The
New Deals labor secretary helped to elevate the Department of Labor
from office to edice. It was during the Perkins era that the Wagner
Act, wildly pro-union, became law and the National Labor Relations
Board, an independent agency and court system for labor, was created. The New Deal also established the national minimum wage, the
very device that Puzder challenges.
Perkins didnt merely side with union membersshe led them. Dur-
ing strikes at the Homestead Steel Works in

Pittsburgh, the labor secretary marched with
workers to assemble at a government site,
a U.S. post office, so that she might remind
them of the merits of collective bargaining.
The change that voters may have expected
didnt come when Republican Dwight Eisenhower took office. Ike, a conciliator by nature,
selected a Democrat and former director of
labor for the state of Illinois, Martin Durkin,
to lead the department. Even George Shultz,
a free-marketer, had more experience in academia than in business when he took office.
PERSECUTION OF DONOVAN
Among all of the labor secretaries to date, one
stands out: Raymond Donovan, whose main
credential was running the business side of
Schiavone Construction in New Jersey. Ronald
Reagans selection of Donovan so irritated prolabor Democrats that even before his conrmation they sought to prove he was some kind of
Tony Soprano, operating corruptly. Once Donovan was conrmed, the Democrats kept assailing him. It was Donovan, who, after a Bronx
jury had acquitted him of both fraud and grand
larceny, posed the poignant question: Which
office do I go to to get my reputation back?
Succeeding labor secretaries have sometimes
fought harder for the private sectorthe Bush
Administrations Elaine Chao comes to mind.
It takes chutzpah to select for a cabinet
post someone from the fast-food industry.
Left-leaning periodicals vilify this fast-food
executive for sport. But maybe chutzpah is
necessary. The fact is that Democrats have
long counted on Republican presidential
winners being too timid to appoint a labor
secretary who might challenge Big Labor.
If conrmed, Puzder is likely to do something that demonstrates that the economy expands better without government, powered by
those shadowy gures who dont usually win
places at the top table. Hes likely, too, to remind us that a union-tilted Labor Department
doesnt necessarily serve the country best. F
AMITY SHLAES, PRESIDENTIAL SCHOLAR AT THE KINGS COLLEGE AND CHAIR OF THE COOLIDGE FOUNDATION BOARD; PAUL JOHNSON, EMINENT BRITISH HISTORIAN
AND AUTHOR; AND DAVID MALPASS, GLOBAL ECONOMIST, PRESIDENT OF ENCIMA GLOBAL LLC, ROTATE IN WRITING THIS COLUMN. TO SEE PAST CURRENT EVENTS COLUMNS, VISIT OUR
WEBSITE AT WWW.FORBES.COM/CURRENTEVENTS.
THOMAS KUHLENBECK FOR FORBES
A THUMB in the eye to the minimumwage lobby is how most journalists

depict the nomination by Presidentelect Donald Trump of Andrew Puzder
to the post of labor secretary.
But offering up a fast-food entrepreneur for the labor post does more than
offend a particular interest group. The
Puzder nomination represents a structural blow to the whole edice that
we have called labor relations since
the Department of Labor was created
THOUGHT LEADERS
RICH KARLGAARD // INNOVATION RULES
TRUMP SAYS hes a winner. To be a

winning president, Trump needs to
x what investor Scott Grannis calls
the Obama Gap. The gap is American
growth that fell into the ditch. From
1966 to 2008 U.S. GDP averaged 3.1%
a year in real growth. Since 2009 its
been barely 2%.
Grannis notes how the U.S. has
bounced back after every recession
except the last one: Never before has
the U.S. economy posted such a weak
recovery and such a long period of subpar growth.
What went wrong? Grannis ticks off the reasons: weak business
investment, low job growth, microscopic productivity gains and, despite record-setting prots, a strange, depressive risk aversion.
Whats been at fault? Writes Grannis: Beginning in 2009, the
economy has been burdened by (1) an unprecedented remaking of the
entire health care industry (ObamaCare), which in turn has impacted
the lives and health care costs of nearly everyone; (2) sweeping new
regulatory burdens on the nancial industry (e.g., Dodd-Frank); (3)
a massive increase in government spending and transfer payments
(the American Recovery & Reinvestment Act); (4) higher marginal tax
rates on income, dividends and capital gains; and (5) a huge increase
in the federal debt burden. You dont have to have a political bias to
believe that these changes could go a long way to explaining why the
economy has been so weak during the Obama years.
So weak, in fact, that about $3 trillion in economic activity that
ought to have occurred during Obamas eight years didnt happen at
allas if it were stillborn. Three trillion dollars would have meant a
lot of new jobs, bigger raises and higher hopes. But they never happened. Grannis says it would take eight years of 5% growth to get the
U.S. back to its 3.1% trend line.
What Trump and the Republicans canand must!do is x items 15.
No, we wont get 5% growth, but we can get a lot more than we have now.
PEDAL TO METALBUT DONT MEDDLE

Trump and the Republicans can set the table for higher growth. But
they cant direct the growthand lets hope they dont try. Trump
wont have any impact at all on what KPMG calls the Great Rewrite.
How we interact, how we buy and sell, how we make things, how
we get from place to place is all being rewritten, says KPMG. The
Great Rewrite is what you get when you combine accelerating technology with Millennial wants and needs. Its a global phenomenon,
and its unstoppable. This wont go down well with some of Trumps
RICH KARLGAARD IS EDITOR-AT-LARGE / GLOBAL FUTURIST AT FORBES. HIS LATEST BOOK, TEAM GENIUS: THE
NEW SCIENCE OF HIGH-PERFORMING ORGANIZATIONS, CAME OUT IN 2015. FOR HIS PAST COLUMNS AND BLOGS
VISIT OUR WEBSITE AT WWW.FORBES.COM/KARLGAARD.
older voters, who want to return to an America they once knew.

Whos going to stop demographic change?
The Millennials are the rst age cohort to
exceed the Baby Boomers in population. Millennials are different, and they will have their
way, as Boomers had theirs. U.S. population is
headed to 440 million people by midcentury.
If you want to stop that growth, then agree
to give up your Social Security and Medicare.
There arent going to be enough working
people to pay for them.
Global population will go from 7.3 billion
to 9 billion, even as it becomes older, richer
and more urban.
Then theres technology. It continues to
ride the Moores Law rate of improvement,
becoming twice as good every two years or
so. On a logarithmic scale you can see a nice
straight line, going up and to the right. But on
the human scale the change is exponential. We
tell ourselves that change is a continual progression. But it has sudden impact: robots that
teach autistic children, cars that drive themselves, drones that deliver IKEA furniture,
human organs that pop out of a replicating
machine, jet engines that tell you when they
need maintenance, metals that are grown and
never fail, live concerts featuring new songs
by long-dead artists, such as Elvis, Michael
Jackson and Prince, rendered in holograms
to audiences that cant tell the difference.
Its all speculation, of course. In reality entrepreneurs will try stuff and try stuff again.
They will be backed by hundreds of billions
of dollars in risk capital. Markets will form
and disappear, as will companies and professions. Sure, its speculative, but the distance
between speculation and reality is fast closing.
This time the old guard sees the next wave
coming. Perhaps because its so big and powerful. At the Original Equipment Suppliers
Association conference in Detroit a few weeks
ago, I saw leaders in the automotive and parts
industry with their eyes wide open to outside
change and to partnerships with entrepreneurs. Thats a new mind-setand its good.
Donald Trump should step out of the way. F
THOMAS KUHLENBECK FOR FORBES
WHAT TRUMP CAN DOAND CANT
ENTREPRENEURS
LUXURY REAL ESTATE, UP FOR BID 40
CATERING TO PET PARENTS 42
Verticals
JANUARY 24, 2017
TECHNOLOGY
TRASH PICKUP: THERES AN APP FOR THAT 46
MONEY & INVESTING

A LESS TAXING RETIREMENT 58
RE-EMERGING EMERGING MARKETS 60
KEEP FOREX RISK AT BAY 62
Lockheeds F-35A, shown

here refueling during a
test ight over the Pacic
Ocean, rst rolled off the
factory oor in Fort Worth,
Texas, in early 2006. The
stealthy multi-role ghter is
capable of speeds of up to
Mach 1.6 (1,200 mph) and
reportedly will soon be able
to deliver nuclear weapons.
Donald Trump has publicly
lambasted Lockheed
for F-35 cost overruns,
but the companys
Washington-savvy CEO,
Marillyn Hewson, is
condent it can withstand
politicians re. PAGE 36
STRATEGIES
DEFENSE
Hardened Target
Never mind Trumps tweets. Lockheed Martin will continue to thrive, because
for the Pentagon and politicians alike, the worlds biggest defense
contractor is Silicon Valley and Detroit combined.
BY DANIEL FISHER
ith a single tweet Donald

cels the programabout as likely as his nomiTrump carved $4 billion off
nating Hillary Clinton to the Supreme Courtit
the market capitalization of
would be painful but hardly fatal for Lockheed,
Lockheed Martin, the worlds
whose 2016 revenues will likely exceed $46 billargest defense contractor. The F-35 program
lion. The taxpayers have already covered some
and cost is out of control, Trump grumbled on
$45 billion in development costs on the F-35,
Twitter at 8:26 a.m. on December 12, attackand Lockheed sells billions of dollars worth of
ing the F-35 Joint Strike Fighter, which at more
other gear to the government, from Trident balthan $1 trillion is the biggest defense project in
listic missiles to helicopters to highly classied
history. Lockheed shares plunged 5% as invesspy satellites. Trump can tweet his displeasure,
tors fretted Trump would kill or maim the effort. but Lockheed is one of a handful of companies
Lockheed hopes to make more than 3,000 F-35s, on Earth that can both invent an entirely new
at $100 million each, in the next 30 years.
defense technologysay, radar-evading stealth
Investors neednt have worried. That 5%
and then mass-produce it on an assembly line.
decline was a blip in comparison with the
Our business is not all around who is the
170% gain in Lockheeds share price since
president of the United States, says Hewson, 62,
chief executive Marillyn Hewson took over
whos the daughter of an Army hospital manager
in January 2013. During that period the comand worked her way through the University of
pany, based in Bethesda, Maryland, has deAlabama as a night telephone operator. Were
livered consistently higher prots and given
managing a huge supply chain, we have internaback $12 billion to shareholders, despite
tional partners around the world, and we expect
declining defense budgets.
a fair return for that.
Trump will soon learn that the bullying
Hewson, who started at Lockheed in 1983
tactics he uses at real estate closings dont work
working on C-130 cargo turboprops in Marietta,
so well with defense
Georgia, has long since
contractors. The F-35
mastered the vagaries
was engineered not just
of doing business with
for stealth but for conthe government. For
LOCKHEEDS TOP FIVE DEFENSE
gressional support. Asinstance, Congress likes
CONTRACTSTHAT WE KNOW OF. BLACKsembled at a 14,000-emto break contracts into
BUDGET PROJECTS REMAIN CLASSIFIED.
ployee complex in Fort
bite-size annual chunks,
ANNUAL COST OF PROGRAM/
Worth, Texas, the ghter
obscuring the total cost
PROGRAM
% REVENUE
draws 300,000 parts
of huge weapons profrom suppliers in 45
grams like the F-35, even
F-35 LIGHTNING II
$6.7 BIL / 20%
states, with a total estithough that makes them
C-130
$1.7 BIL / 5%
mated economic impact
more expensive and
F-16
$1 BIL / 3%
of almost 150,000 jobs.
less efficient in the long
PAC-3 MISSILE
$1 BIL / 3%
Even if Trump canrun. Lockheeds internal
TRIDENT BALLISTIC MISSILE $1 BIL / 3%
BIG-TICKET
ITEMS
FRANCO VOGT FOR FORBES
systems are optimized to deal with this sort of

governmental nonsense.
Hewson is all in on defense, which accounts
for over 90% of sales. One of her boldest moves
was the $9 billion purchase of the Sikorsky helicopter unit from United Technologies in 2015,
securing the $3.9 billion contract for Marine
One (the presidents personal eet of 23 heli-
copters), which Lockheed had lost a few years

before. That program is ripe for an outraged
Trump tweet, but Sikorsky also helps presidentproof the company: Sikorsky helicopters are
popular with foreign governments as low-cost
weapons platforms and should help push overseas sales to 30% from around 25% today.
Sikorsky also allows Lockheed to dis-
Lockheed CEO Marillyn

Hewson parlayed a
masters degree in
economics at the
University of Alabama
into the top job at
Bethesda.
DEFENSE
FIGHTING TRIM
The F-35 is one of the most complex machines ever built, a 1,200mph
single-engine ghter/bomber. Lockheed wont conrm, but according to
GlobalSecurity.org stealth technology reduces its radar prole to that of
a golf ball. Assembled in a mile-long building, the plane is crammed with
sensors that allow the pilot to see through the bottom of the cockpit via
a helmet display. The outer skin is attached to the titanium-and-aluminum
frame with a precision that Mercedes-Benz can only dream of. A variance
of several ten-thousandths of an inch from spec is enough to produce
radar reections that degrade the planes stealth capability. Onboard
computers running 9 million lines of code allow multiple F-35s to share
encrypted communications to triangulate enemy positions. With an internal bomb load of 4,700 pounds in stealth mode and 18,000 pounds when
carried on noisier underwing pylons, the plane is designed to sneak in
and destroy enemy air defenses and return for full-scale bombing. D.F.
and power a city of 100,000. My job is to make

sure that as our customers priorities change, as
the environment changes, we shift that portfolio
of products to meet them, Hewson says.
But Lockheed isnt just a massive research lab;
its also a manufacturing giant, producing not only
sophisticated aircraft like the F-35 at scale but
also robotic submarines and
high-speed combat ships for
HOW TO PLAY IT
the Navy. It built the Patriot
BY KEN FISHER
missile, the Aegis antimissile
Big defense contractors tanked the week after Trump won
system and the Viking rovers
the election. The Republicans wont get blamed for being
still cruising around Mars.
too soft on defense, so they neednt be strong on it. And
as weve seen, Trump wont like big rms charging him
Trump will discover that if he
big-ticket prices. If youre doing defense, think smaller,
wants programs like these, he
cheaper and diversied, such as TEXTRON, led by its
has few other options.
smaller, cheaper Cessna line of planes, bought by defense and nondefense
The Pentagon can buy
customers alike. UNITED TECHNOLOGIES is bigger but has a similar prole.
Sidewinder missiles from
Expect cheaper-ticket items to moveat least until the next election cycle.
Raytheon and nuclear subs
from General Dynamics, but
Lockheed is probably the only contractor that
heeds helicopters could be pilot-optional.
can pull together a project the size of the F-35.
R&D is another defensive strategy. On averHewsons biggest challenge is persuading Conage, Lockheed spends $700 million a year to
gressand the Donaldto place larger orders
come up with technology the Pentagon cant
so Lockheed can wring costs out of its immense
afford not to buy. The companys Silicon Valley
supply chain and bring the price down to bepresence dates to the 1950s, when its engineers
tween $80 million and $85 million (less than the
were pioneering the ballistic missile technology
cost of Trumps personal 757 jet).
designed to deliver nuclear warheads. Now enIf you look at the global security environgineers in Palo Alto and elsewhere are working
ment and how challenging and crazy that is,
on hypersonic aircraft that could traverse the
and its our products that are going to help
country in less than an hour, as well as on directwith that, I think were a great growth story,
ed-energy weapons to blast incoming missiles
Hewson says. As I look at companies in our
apart with laser beams and a compact fusion
industry, Id bet on us.
reactor that can t in the back of a pickup truck
play some of its Skunk Works-bred technical
prowess. Take autonomous ight. Lockheed
engineers are masters at the technology. The
pilotless K-Max helicopter, for example, has
hauled more than 4.5 million pounds of cargo to
remote military posts in Afghanistan since it was
deployed in 2011. In a few years most of Lock-
FINAL THOUGHT
Diplomacy is letting someone else have your way. LESTER B. PEARSON

BY THE
NUMBERS
YIELD TO
ONCOMING
TRAFFIC
U.S. AUTO DEALERS
ARE LOOKING WITH
TREPIDATION AT A JAM
OF LEASED CARS THAT
WILL COME ONTO THE
RESALE MARKET OVER
THE NEXT FOUR YEARS.
THAT WILL LIKELY LOWER
USED-CAR PRICES AND
HURT NEW-MODEL SALES
AS WELL. SMART DEALERS
WILL LIKELY RESPOND BY
RESELLING MORE SUCH
VEHICLES AS CERTIFIED
PRE-OWNED, WHICH
TYPICALLY FETCH HIGHER
PRICES BECAUSE OF
THE EXTRA CARE AND
ATTENTION DEALERS GIVE
THEM. A LOOK AT THE
FIGURES DRIVING THEIR
DECISIONS:
VEHICLES
CERTIFIED
COMING
PRE-OWNED
OFF LEASE
SALES
2015
2.5 MIL
2.5 MIL
2016
3 MIL
2.9 MIL
2017
(forecast)
3.6 MIL
2.9 MIL
2018
3.9 MIL
3.1 MIL
2019
4.3 MIL
3.3 MIL
2020
4.6 MIL
3.5MIL
Source: Cox Automotive.
TYRONE TURNER/GETTY IMAGES
STRATEGIES
ENTREPRENEURS
New House on the Block

Thanks to companies like Concierge Auctions, buying a luxury
home can be done with the swipe of a nger on a smartphone.
Is this where the future of real estate sales is going. . .going. . . ?
BY SAMANTHA SHARF
Over the years Concierge has worked with celebrities (including Michael Jordan and Cher) and billionaires (including GoDaddy founder Bob Parsons)
who want to maintain privacy on their properties.
Our sellers want to make wise decisions, says
Laura Brady, Concierges 37-year-old founder and
president. Watching money leave to keep up an
asset they are not using is not fun. Brady began
selling real estate in 2004 and quickly became one
of the top-selling agents in Florida. By the next year
the states housing stock was starting to balloon, a
sign of trouble. Brady also had concerns about the
way high-end properties were sold in this country.
The standard list-offer-negotiate model is
relatively efficient for homes under $250,000,
because the buyer pool is large. For multimilliondollar properties, prospective buyers are harder to
nd. (Only 2.3% of U.S. homes sold last year went
for over $1 million.) Luxury properties tend to
sell quickly near the asking price or languish for
months before selling at a signicant discount.
The higher the price point and the more unique
the property, the less the traditional method of selling worked, Brady says. Auctions were a perfect
solution. Theyre quick and competitive, adding
urgency to a transaction
and establishing fair value
HOW TO PLAY IT
for a hard-to-price asset.
BY NICHOLAS GALLUCCIO
(In Australia many homes
A housing recovery, steepening yield curve, easing of regulations
are sold this way.) Brady
and lower corporate taxes are like manna from heaven for nancial
persuaded her boss, Chad
rms, especially regional banks. Those exposed to dynamic economies and improving housing trends, like Bank United in Florida or
Roffers, to test the theory.
Legacy Texas in Texas, will continue to benetLegacy doubly
After a few successes,
so with its mortgage warehouse lending line. Another, Glacier
Brady started Concierge
Bancorp, has a core lending base in Montana, home to a seasonal
economy and luxury-home buyers. Similarly, Ethan Allen touches both fronts: a reand moved to New York
freshed product line of high-end home furnishings and a sizable real estate portfolio.
in 2008. Roffers, now
chairman, soon followed.
ful as Redekopsaround 30% dont result in
Today many companies sell homes by auction,
sales, and many bring in lower amounts than the particularly properties that have entered forecloseller had expected. Nevertheless, Concierge is
sure, but few have succeeded at the price range
a leader in a small but growing group of auction
where Brady and Roffers operate. Concierge sold 85
houses selling homes like works of art.
of the 133 homes it auctioned in 2016, up from 60 of
Bidder up: Concierge

Auctions founder
Laura Brady and
company chairman
Chad Roffers in an
Austin, Texas, estate
that sold in 2016 for
$2.68 million.
MATTHEW MAHON FOR FORBES
aren Redekop designed Casa Karen,

a palatial hillside estate in Los Cabos,
Mexico, to exacting specications.
She hired local artisans to paint ornate murals and imported pieces from India, Indonesia, Thailand, Europe and the Middle East.
But after ve years perfecting her creation it was
time to move on.
The 60-year-old Canadian was eager to start
her next project, a 4-acre compound in nearby
Palmillia, so she hired a local real estate agent,
who listed the home for $2.7 million. A year later
she hadnt received a single offer.
Enter Concierge Auctions, a New York-based
real estate company that sells luxury homes to
the highest bidder, promising clients premium
marketing and immediate sales. Two months
after Redekop listed on Concierge, the house sold
for $2.6 million in a 30-minute mobile auction.
Helping wealthy clients buy and sell homes
in a timely fashion propelled Concierge Auctions to sell $270 million worth of real estate in
2016, bringing in more than $30 million in revenue and pushing the company above $1.2 billion
in all-time sales. Not all auctions are as success-
LUXURY
80 in 2015. For 2017 its projecting 150 auctions. (By

comparison, competitor Platinum Luxury Auctions
holds about 25 auctions a year.)
On both sides of the sale, Concierge works with
local real estate agents, who receive the traditional
5% to 6% sales commission and gain national exposure for a property. On the buyer side, Concierge
takes a hefty 12% premiumas an auction house
does with artbut then many homes sell for less
than their original (and often aspirational) list price.
Auctions with Concierge typically have no reserve
and range from $2 million to $40 million, with an
average of about $4 million. The company says it
has been protable since year one, but a new pricing
program may test its model.
To entice homeowners, Concierge began covering the seller commission in November. It also cut
a $50,000 upfront fee that was refunded upon closing. In other words, sellers hire Concierge but now
absorb none of the costs directly.
To Jonathan Miller, CEO of real estate appraisal rm Miller Samuel, pushing the costs to the
buyer is a bit of marketing magic, akin to person-
al-injury attorneys who gain client trust

by taking a cut only after a settlement is
reached. It is not that the seller is going
to net out more money, he says, reasoning
that buyers will factor in the cost. Its a
stronger sales pitch.
These concessions may be an effective marketing ploy, but they do nothing
to offset the staggering costs buyers face.
Brady claims buyers havent complained
about the high fees but says the solution for
anyone offended by the price is simple: Bid
less or not at all. If they dont want to pay
the extra premium, then they dont have to
bid, she says. From a buyers perspective
if they dont want to lose a property, they
have to come and abide by the rules.
That may seem like an unfriendly stance
toward clientele, but agents who have
worked with Concierge say auctions can
provide better deals than purchases made
on the open market.
Sellers praise Concierge for generating more showings in the month before an
auction than their homes received in years
on the market. The company estimates that
a seller unloading an $8 million property
could be spending $40,000 a month on carry
coststaxes, insurance and maintenanceoften
to maintain a home the seller is not even living in.
On average, properties spent six months on the
market before Concierge was brought on.
Technology is also changing the way Concierge services buyers and sellers. Watch a video
on its site multiple times and a sales agent will
be in touch. If you replay footage of, say, a pool,
itll send a roundup of the best homes for swimmers. Currently 90% of auctions are conducted
on Concierges Instant Gavel mobile app, rolled
out a year ago. Matthew Magnotta, an agent
with Berkshire Hathaway HomeServices Utah
Properties, recalls staring at a clients iPhone as
he bid on a medieval-inspired castle in Park
City, Utah.
In normal real estate there is a lot of discussion and investigation that makes it a real thing
that the transaction is actually happening, Magnotta says. When youre buying a $10 million
house by clicking on an iPhone, like youre buying something on eBay, its surreal.
FINAL THOUGHT
To be happy at home is the ultimate result of all ambition. SAMUEL JOHNSON

ENTREPRENEURS
Pet Smarter
Four years ago Chewys college-dropout
founders couldnt get a meeting in Silicon Valley.
Now theyre running one of Americas biggest
privately owned e-commerce sites.
BY SUSAN ADAMS
Chewys Facebook page into the

wee hours. Positive reviews, he
says, give me goose bumps.
The son of a teacher and
a glassware importer, Cohen
xated early on becoming an
entrepreneur. At 15 he discovered
the dark art of affiliate marketing,
collecting fees for referring customers to e-commerce sites. He
got so good at it that he started
banking thousands of dollars a
month. While looking for a programmer to help build his affiliate sites, he met Michael Day in a
Java chat room. Day dropped out
of the University of Georgia to
join forces with him, and in 2011
they sank $150,000 of their own
money into an online jewelry
startup in Florida. But after a visit
to a Miami trade show, they felt
intimidated by how much there
was to learn about gems and precious metals and realized they
had no passion for the business.
Then Cohen had an aha moment while
buying food for Tylee, his apricot-colored teacup
poodle. Shes my No. 1, he says, and Im married. Cohen, who shares his bed with Tylee
and his pregnant wife, sees himself as a pet
parent. Typically, pet parents spend freely on
premium foods, often made with ingredients t
for humans, like grass-fed, free-range, hormonefree New Zealand lamb, the main ingredient
in K9 Natural Lamb Feast, available on Chewy.
com at $190 for an 8-pound box. Pet parents
who dont sleep with their furry offspring can
buy a Big Barker pillow-top orthopedic dog bed
Going to the dogs:

Ryan Cohen says it
was Tylee, his teacup
poodle, who inspired
the decision to sell pet
food instead of jewelry.
For me, it was feeding
my baby.
n December 2012, desperately needing

money to expand Chewy, his year-old petsupply startup, Ryan Cohen traveled from
Fort Lauderdale to Palo Alto and walked
into a half-dozen venture capital rms on
Sand Hill Road unannounced. He didnt get past
the receptionists. Three months later he tried the
same tactic again. Im relentless, says Cohen,
a college dropout from Montreal. It felt like it
should work. It did not.
Yet four years later Chewy is one of the nations largest and fastest-growing privately
owned e-commerce companies, on track to
book revenue of $900 million in 2016 and more
than $1.5 billion in 2017. Relying on a customerservice strategy Cohen calls Zappos on steroids,
Chewy deploys 416 of its 3,400 staffers to answer
phones and texts in round-the-clock shifts at the
companys 70,000-square-foot headquarters in
Dania, Florida. To ensure speedy delivery to his
3 million patrons, he has built three fulllment
centers, each the size of ten football elds, and
has plans to open three more by early 2018.
Chewy has already grabbed 43% of the online
sales of pet food and litter in the U.S., just behind
Amazons 48%, according to market research
rm 1010data. (Big-box retailers Petco and
PetSmart are both in the single digits.) We want
to be the No. 1 pet retailer in the world, Cohen
says. He has a long way to go. Chewy has yet to
turn a prot, and the way its spending money to
acquire customers, its not clear it ever will.
Cohen, 31, is compulsive about executing, and
about other things, too. I have OCD, he says
though hes never been diagnosedwhile digging
into a lunch of steamed salmon and vegetables
at Chewy HQ. His diet is primarily two meals:
steamed vegetables with sh or chicken. He
sleeps three hours a night, reading feedback on
STARTUPS
on Chewy for $400. In 2016 the U.S. pet-product

market was projected to hit $47 billion, according to market research rm Packaged Facts, with
e-commerce accounting for as little as 5%.
Betting that the population of big-spending
pet parents would grow and that their buying
would move online, Cohen and Day sold their
jewelry inventory for 80 cents on the dollar,
scraped up some more cash from their personal
bank accounts, converted their jewelry site into
Chewy.com and started buying products from
distributors. They found a third-party fulllment
center in Easton, Pennsylvania, and launched
in late 2011 with 50 dog- and cat-food brands,

matching online prices with competitors and
offering discounts on rst-time orders. Even
though Cohen and Day answered customer calls
themselves, 24 hours a day, and didnt take salaries, Chewy lost money. But sales grew, hitting
$26 million by the end of 2012.
Though Cohen had struck out in Silicon
Valley, Chewy attracted interest from Bostons
Volition Capital. In late 2013 Volition invested
$15 million after watching Chewy exceed
its growth targets. Ryan had crushed all his
numbers, says Volition partner Larry Cheng.
ENTREPRENEURS
STARTUPS
ten holiday cards, which cost the company

$940,000 in postage alone.
One pet industry veteran, who says he
knows three people who are familiar with
Chewys nances, doubts the company will
reach protability. He says Chewys average
sale is $75, its average margin after discounts
30% and its average cost of deliverywhich
Chewy offers for free on orders of more than
$49around $12. A competitor estimates that
Chewys customer-acquisition cost could run
as high as $200 per rst sale, given that the
company pays to appear at the top of Google
searches for each of the hundreds of brands
it carries. The bottom line is that Chewy is
incredibly predatory, and theyre willing to lose
money to grow their volume, says the industry
veteran.
Confronted with those numbers, Cohen
merely smiles. He wont specify his unit economics but says theyre positive. He says customer retention is high, as is the lifetime value
of those customers. Theyre smart to be really
aggressive and to push really hard right now,
says e-commerce analyst Mulpuru. Theres
HOW TO PLAY IT
a window of opportuBY WILLIAM BALDWIN
nity to be this darling
Ransom E. Olds, James Cash Penney, Howard Johnson, BlackBerin the e-commerce
ry and Netscape were pioneers in assembly lines, merchandising,
space. But I do quesfranchising, messaging and browsing. But Henry Ford, Sam Waltion the lifetime value
ton, Ray Kroc, Apple and Google made the big money. Investors
captivated by the rst-mover advantage of Pets.com 17 years ago
of their customers. In
suffered a spectacular ameout. The winner in online dog food is
the age of the Internet
going to be a latecomer. You can make a big score with the inventor of an industry
its so easy to switch.
(Amazon, FedEx). But balance out any what-if bets in your portfolio with a good
Starting with Amameasure of what-is. A place to start: Vanguard Small-Cap Value ETF.
zon, the competition
is formidable. Jet.com,
the bulk e-commerce site acquired by Wal-Mart
zon employees on LinkedIn and managed to
last year for $3.3 billion, has moved into pet suphire 100 of them. By mid-2014 the company had
opened a 600,000-square-foot fulllment center plies and is undercutting Chewys prices on bulk
sales of some products. And Petco and PetSmart,
in Mechanicsburg, Pennsylvania.
with revenue of
Cohen also poured money into customer ser$4 billion and $7 billion, respectively, remain the
vice. Your schnauzer doesnt like the Blue Buffalo Wilderness Salmon Grain-Free dog food you biggest specialty players in pet retail. But Cohen
says he is convinced that e-commerce will evenbought for $48? Chewy will issue a refund and
tually take at least 50% of total pet product sales
suggest you donate the food to a local shelter.
and that Chewy will log more than $5 billion in
Canceling your auto-ship order because your
revenue by 2020. Well be done growing, he
Siamese passed away? Chewy sends owers.
says, when were 6 feet under.
Last year Chewy mailed 2 million handwritWhen Cheng asked Cohen whom hed most
like to have as board chairman, Cohen named
Mark Vadon, founder of jewelry site Blue Nile
and ash-sale site Zulilly. Cheng made the introduction, and Cohen ew to Seattle to meet
with Vadon, who was impressed by Cohens
attention to detail. He knew the specic economics of his transportation contracts with
carriers, says Vadon, who agreed to serve as
Chewys chair and to invest $5 million of his
own money. Five more investors followed,
including T. Rowe Price and BlackRock, for a
combined total of $236 million. Cohen wont
reveal Chewys valuation, but longtime ecommerce analyst Sucharita Mulpuru, who
recently moved from Forrester Research to
Shoptalk, a retail conference organizer, pegs it
at $4 billion.
The capital allowed Cohen to shift his plans
into high gear. He decided to take fulllment
in-house, even though he and Day, now Chewys
chief technology officer, knew nothing about
warehouse operations. To nd experienced staff,
Chewy sent out hundreds of invitations to Ama-
FINAL THOUGHT
Make your customers comfortable and they will give you their lives.
PAUL ORFALEA
MARGIN
PROPHET
GETTING BUZZED
IN 2008 HIGH SCHOOL
TEACHER MERRILEE KICK,
NOW 53, GOT THE IDEA FOR
BUZZBALLZ, SINGLE-SERVE
COCKTAILS THAT COME
IN BRIGHTLY COLORED
CONTAINERS. TODAY HER
CARROLLTON, TEXAS,
COMPANY EMPLOYS 60 AND
SELLS ITS DRINKS IN 40
STATES. ANNUAL REVENUE IS
$20 MILLION.
How much cash did you

need to get off the ground?
I was trying to get
$300,000. I was told,
Youre a woman, this is a
male-dominated industry,
and we dont think youre
going to survive.
What about family money?
My husband said, I will not
support this. Dont use any
of our 401(k) or savings.
I took $27,000 from an
inheritance. I took out a
home-equity line of credit
for $69,000. A bank said if
I put that amount down, itd
give me $178,000.
Why didnt your husband
want to help?
Hes a CFO, and he was
terried Id lose every
penny. He changed his
direct deposit from our
checking account to a
private bank.
How did you get Buzzballz
into retail outlets?
I sent a letter to 17,000
convenience stores and
5,000 liquor stores. All of a
sudden sales started taking
off. Susan Adams
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TECHNOLOGY
LOGISTICS
Trash Tech
Rubicon Global CEO Nate Morris is building the Uber of garbage
collection, disrupting a $60 billion industry dominated by giants.
CLAY COOK FOR FORBES
BY ALEX KONRAD
ike other entrepreneurs who head

blockbuster tech startups, Nate
Morris these days nds his social
calendar sprinkled with glitz and
glamour: invitations from Leonardo DiCaprio to a premiere of The Revenant (he
declined) and from billionaire Marc Benioff to
a private dinner with Arianna Huffington and
Billie Jean King (he accepted). But much of
his business at Rubicon Global is a world away
from Hollywood and Silicon Valley, in places
like Jeffersonville, Indiana, a
town of 45,000. On an unseasonably warm November day, hes
there meeting with local garbage
boss Bob Lee, who has a plea for
Morris: We need your help.
Lee has been in the garbage
business since he snagged a gig
hauling trash for the local unemployment office as a young Army
vet in 1971, and his company, Eco
Tech Waste Logistics, based in
Louisville, Kentucky, is the kind
of mom-and-pop operation that
has powered Rubicons ascent.
With 96 employees and 69 haulers (trucks), Eco Tech is one of
the areas leaders. But like almost
every other small hauler in the
country, it faces a daily challenge from national players with
resources that dwarf its own, and
Rubicons tech offers a way to
ght back.
Rubicon is the Uber of trash.
Its software connects waste
collectors (the guys with the
trucks) with the waste creators
(an office or business or perhaps
even homes), then makes sure
the pickup runs smoothly. For
the haulers, Rubicons app helps
detect when the collection happens without any input from or
distractions for the driver. The
dispatchers know where their
trucks are and whos working the
most stops. The consumer gets
a big-picture view that shows
With a model straight out of Ubers
playbook, Rubicon Global CEO Nate
how much waste theyre sending
Morris is helping thousands of small
to
landlls versus recycling and
garbage haulers compete with industry
how frequently they really need
giants like Waste Management.
service, helping to cut costs.
Rubicon charges both sidesthe haulers and

their customersfor access to its tech.
Eight years after Morris launched the
company with childhood friend Marc Spiegel
in Louisville, where they grew up, Rubicon
works with 5,000 small hauling businesses
and with big customers like 7-11 and Wegmans. It snagged its rst municipal contract
in October in Atlanta. Revenue has tripled
to more than $200 million in the past year.
Rubicon has lured top-tier investors such as
Goldman Sachs and Wellington Management
and is now poaching talent from Silicon Valley. And with a new partnership with Suez
Environment, a $15 billion French multinational hungry to learn from Rubicons technical chops, Morris is gunning for a $60 billion
industry in the U.S. thats dominated by giants
Waste Management (revenue: $13 billion) and
Republic Services ($9 billion).
Suez is leading a new $50 million investment in Rubicon, bringing its valuation to
$800 million. Already the owner of Waste
Managements former assets overseas, Suez
plans to reenter the U.S. market by working
with Rubicon, which will share its best tech
practices and what Morris considers its most
valuable asset: its data. The U.S. model is oldfashioned, says Jean-Marc Boursier, CEO of
Suezs Recycling & Waste Recovery, Europe,
who has kept his companys plans with Rubicon secret until now. We hope it will astonish
and surprisethen they will need to evolve
and evolve very fast. For Rubicon, the Suez
deal opens a clear route to markets overseas
over time. For now, its Morris ace up his
sleeve to take more share from the incumbents. Thats when it gets fun, he says.
Morris, 36, was elected student-body
president in fth grade, and by high school
he had met Bill Clinton and hosted a morning news telecast. As a scholarship student at
George Washington University, he woke up
early on weekends for internships and began
moonlighting for the state GOP to help reelect
Senator Mitch McConnell.
Morris went off to China to teach business
management and work for Kentuckys cabinet
for economic development before heading to
Princeton for graduate school in public and
international affairs. Firsthand exposure to industrial sprawl in China had put sustainability
on his mind, and with Spiegel, whose family
had worked in the garbage hauling business
LOGISTICS
year, according to the Solid Waste Association

of North America. Rodoni also helped develop
a software management suite, Caesar (later renamed Augustus), to track volume and routes,
and an e-commerce program, Rubicon Pro,
which offers customers a discount marketplace for supplies and loans.
Much of Rubicons model is straight from
Ubers playbook. It keeps risk and capital
costs down because it doesnt own trucks
or disposal centers itself. Former Uber CFO
Brent Callinicos, who also joined Rubicons
board, says the companys growth potential
rests in its ability to empower its small-business base.
For all its success, Rubicon remains minuscule compared with its national rivals. Its
deal with Atlanta was the companys rst with
any city. By comparison, Waste Management
works with 3,500 municipalities and Republic
with 2,700. Meanwhile, Waste Management
has invested $150 million in IT in the past
year and has been outtting 16,500 trucks
with mobile devices. I dont want to be the
guy on the sidelines
when it comes to
HOW TO PLAY IT
disruptive technolBY MARILYN COHEN
ogy, says James Fish
One of the ways giant garbage haulers like Waste Management
Jr., who was appointand Republic Services got so big was through acquisitions. If
ed in November as
Rubicon is really the Uber of the garbage business, it could be
Waste Managements
a perfect future acquisition for one of the industry giants. With
new CEO. I want to
Waste Managements stock hitting all-time highs, think bonds.
Steady businesses like garbage hauling are tailor-made for throwbe the disruptor.
ing off the income streams bondholders love. Waste Management bonds maturing
But Morris isnt
on March 1, 2025, yield 3.2%. If disruptors like Rubicon can prompt an old industry to
the
only one who
reboot itself, Waste Management could get upgraded from Baa2/A- to A+ or better.
sees plenty of opportunity ahead.
Analysts say incumbents are under pressure
when Morris befriended Uber founding CTO
to cut costs and provide steady dividends, not
Oscar Salazar, who became an investor, board
seek Uber-like hypergrowth. Still, Waste Manmember and pipeline to tech talent. Salazar
agement and Republic combined are already
helped recruit Phil Rodoni, the software chief
worth nearly $50 billion. Maybe it takes them
at Esurance, who led the team that built Ru20 years, but if the other guys can get to $50
bicons Shake app, which measures proximity,
billion, I dont see why Rubicon cant either,
speed and the shaking motion of an emptying
says Salesforces Marc Benioff, who invested
trash bin to conrm service. That hands-free
in Rubicon after meeting Morris in 2014. Take
monitoring, which allows the driver to remain
that with a grain of saltits Benioff, techs
focused on the street, helps to eliminate the
hyperbole king, speaking. But even at a small
top cause of fatal accidents involving garbage
fraction of that, garbage could prove to be a
trucks. Such accidents led to 21 employee famighty good business for Rubicon.
talities and several dozen civilian injuries last
for years, the two decided the industry was
ripe for a tech-based disruptor. They made
all their money from landlls, Morris says.
We could be the brain for the industry.
To friends and family the move was a shock.
I asked, Do you understand who is in this
business? And he said, I dont mind ghting,
recalls Morris grandfather Lewis Sexton, a
former president of the local union for the
Ford plant in Louisville. The union liked Morris vision of empowering independent haulers, and when he proved he could save them
60% on their waste disposal, the union hall
signed up as Rubicons second customer.
Getting investors proved harder. To do
business in several states, including New York,
Rubicon had to ask every investor to get ngerprinted. Eventually QuarterMoore Capitals Lane Moore, who had cofounded Bagster,
a company he sold to Waste Management,
agreed to invest and join the boardbut only if
Rubicon moved to Atlanta, where he worked.
The move attracted more high-prole supporters, and Rubicons next big break came
FINAL THOUGHT
Ours is a culture and a time as immensely rich in trash as it is in treasures.

RAY BRADBURY
TRENDING
WHAT THE 50 MILLION
FORBES.COM USERS
ARE TALKING ABOUT.
FOR A DEEPER DIVE GO TO
FORBES.COM/TECHNOLOGY
COMPANY
ONSHAPE
The Cambridge,
Massachusetts, rms
all-cloud software aims
to greatly simplify
the creation of 3-D
computer-assisted
design for medical
devices, electronics
and more.
PERSON
LEONARD KIM
The 31-year-old
Angeleno has
transformed himself
from homeless and
adrift to a social media
and branding specialist
sought out for his youthmarketing insights.
IDEA
MASS
CARTOGRAPHY
Autonomous vehicles
increasing prevalence
in the years ahead
will drive demand for
crowdsourced maps
via technology that will
make todays GPS look
like an AAA TripTik.
EVAN DUNING
TECHNOLOGY
SPECIAL ADVERTISING SECTION
Index
03
Masahiro Okafuji
ITOCHU Corporation
www.itochu.co.jp/en/
05
Yuzaburo Mogi
Kikkoman Corporation
www.kikkoman.com
06
Fujio Mitarai
Canon Inc.
global.canon
09
Akihiro Teramachi
THK CO., LTD.
www.thk.com
39th Annual Special

Japan Section
Writers
Martin Foster
David W. Russell
Photography
Kentaro Ishibashi
Mao Yamamoto
Japan
Traditional Values Bring Tectonic

Shift to Trading Sector
When Masahiro Okafuji became President and CEO of one of Japans best-known general trading
companies (sogo shosha) in 2010, he had his work cut out for him. Once-proud ITOCHU Corporation had
fallen to fourth place in the shosha rankings. President Okafuji promised to help the rm at least regain its
former third-place standing.
et even that promise looked difcult to keep. Shosha are ranked

by global sales, and the top two
firms have held those positions
seemingly forever. Moving up just one
notch would require both brilliant strategy and a Herculean effort.
Then came a tectonic shift that sent
shock waves through the business. When
the big shosha closed their books last
year, ITOCHU had rocketed to number
one. The common explanation was that,
at Okafujis direction, the company had
decreased its massive energy and resource
investments just before those markets
tanked. However, inside ITOCHU, people
spoke of the Okafuji Reforms, a series of
major internal policy changes that turned
the company into a tiger almost overnight
and stunned the competition.
I didnt set out to be a reformer, Okafuji explains. I just wanted our staff to
rediscover what it means to be a shonin.
He uses the traditional Japanese term for
the hardworking merchants of old times,
who met with their customers face-toface every day and placed their needs
above everything else. ITOCHU was
born from shonin culture, he continues,
and if we lose that, we have lost our soul.
I wanted to remind everyone of why we
are proud to be called shonin.
In short order, Okafuji instituted policy
changes to refocus staff. For example,
he ended ITOCHUs f lextime system.
We had people coming in at 10:00 a.m.,
talking about working core hours. Maybe

thats OK for other rms, but not for a shosha. We exist to serve our customers. The
second we forget that, we start to go out
of business. Our customers begin to work
early in the morning; if they want information or need help with something, they
wont wait until 10 to call us. If our rep
isnt there to take their calls, the customers will nd someone who is.
Get Out of the Ofce!

To boost efficiency, Okafuji slashed the
number of meetings and the volume of
paperwork being generated. No one ever
sold anything by sitting in a meeting,
Okafuji says, his voice rising slightly with
characteristic passion. You cant serve
your clients by designing a PowerPoint.
You have to get out of the ofce and go do
real work. You have to meet with your customers every day. Thats what shonin do.
A sign on his ofce wall sums up Okafujis management philosophy: Earn,
Cut, Prevent.
Everyone is focused on earning; thats
natural because it feels good. Other shosha all focused on making money strategically or not, thats another story, he
says with a smile. But everyone dislikes
cutting off the fateliminating waste
because it can be very painful. The shonin of old understood that, he explains,
but too many of todays executives lack
the will to do what is necessary.
As for prevent, Okafuji explains,
Masahiro Okafuji
President and CEO, ITOCHU Corporation
Its essential to examine all our businesses and anticipate problems before
they arise. We must look at our strategy
and constantly adjust it to respond to
changes in the global economy. Preventing losses is much cheaper than dealing
with the consequences.
He concludes: People ask if there will be
a role for shosha in the future. I say, as long
as we provide useful functions and serve
our clients faithfully, there will always be
a need for hardworking shonin.
Masahiro Okafuji joined ITOCHU in 1974 after graduating from the University of Tokyo. He was
appointed Executive Ofcer in 2002, Managing Executive Ofcer in 2004, Director and Executive
Vice President in April 2009, and President and CEO in April 2010.
www.itochu.co.jp/en/
Japan
Healthy, Sustainable
Growth on the Menu
Many Japanese companies have long histories, so its not at all unusual
for a rm to proudly remind customers that its been in business for 100
or 150 years. But very few companies can clearly trace the origins of
their business back over 300 years. None is more famous for its longstanding tradition than Kikkoman Corporation.
onorary CEO and Chairman Yuzaburo Mogi is the living embodiment of t hat t ra d it ion. Hi s
ancestors helped grow a small,
village-based soy sauce business into a
major Japanese corporation, and Mogi
himself helped nurture it into a powerful
international brand that produces reliable investor-friendly growth in sales and
operating income year after year.
In person, Mogi is a true old-school
gentleman, always well dressed and
articulate, and one of the few Japanese
senior executives who speaks English
uently. This is not surprising, considering the fact that he lived in the U.S. for
years and earned an MBA from Columbia University.
When asked about the goals outlined in
Global Vision 2020the companys vision
and basic strategy for the futureMogi
explains that while none have specific
numerical targets, the most important
one will continue well past 2020.
This key goal is to make Kikkoman
Soy Sauce a truly global seasoning, Mogi
shares. So many people around the world
have still not tried shoyu (soy sauce) in
their everyday recipes, and have not yet
discovered it is an all-purpose seasoning
that can enhance the avor of almost any
food. That is what I most want to change
in my lifetime.
Kikkoman seems to be well on its way

to achieving that goal. Sales in North
America have been growing steadily for
half a century, European sales are still
growing in double digits on average, and
Asian business, too, is expanding.
A World of Flavor Awaits

Mogi notes that Asia is an especially challenging market for the company.
Unlike the U.S. or Europe, most Asians
are already familiar with soy sauce, he
explains. People there have grown accustomed to the f lavor of their own local
varieties, so it is harder for us to convert
users. He points out that most of the local
products are much cheaper because they
do not use the slow fermentation process
that Kikkoman has mastered over centuries. Still, the Asian economies are growing, tastes and incomes are changing, and
Mogi is sure that Kikkoman has a prosperous future ahead in the region.
Then, he says, smiling, down the road
there is South America, and eventually
Africa as well.
True, there are plenty of new shoyu
markets to conquer, but is Kikkoman a
one-product company?
Certainly not! Mogi replies with a
laugh. Our wholesale foods business
through one of our subsidiaries, the JFC
Groupis growing tremendously. This
Yuzaburo Mogi
Honorary CEO and Chairman of the Board
Kikkoman Corporation
group is the worlds largest distributor

of what we call Oriental foodstuffs. The
popularity of Asian-style cooking and the
demand for Asian-fusion cuisines continues to grow.
In addition, our Del Monte business,
which covers most of Asia, is doing well.
We are also developing a promising soy
milk business, and we have invested in
the health foods and supplements business through companies such as Country
Life in the U.S.
Mogi notes that the firms real goal
for the coming years is to harmoniously
blend many local and regional foods and
ingredients with the essence of traditional washoku (Japanese cuisine) and,
of course, with shoyu, to create exciting
new varieties of local dishes. This international exchange of food culture is at
the heart of Kikkomans thinking.
Yuzaburo Mogi is a descendant of one of the founding families of Kikkoman, which is one of the oldest
continually running businesses in Japan. He became company President in 1995, was named Chairman
in 2004, and assumed the title of Honorary CEO and Chairman of the Board of Directors in 2011. Mogi
holds an MBA from Columbia University.
www.kikkoman.com
Japan
A Sharper Focus on
Constant Transformation
The rst time we visited Canon, back at the beginning of this century, the company was excited about the
second ve-year installment of its Excellent Global Corporation Plan. CEO Fujio Mitarai explained that the
plan was designed to evolve Canon from a good company to a great one. We recently revisited Canon, and
once again had the pleasure of speaking with Mitarai, now Chairman and CEO.
are strengthening our manufacturing
capabilities by reinforcing our commitments to robotics and automation; secondly, we are expanding all our current
business lines while at the same time pursuing M&A in areas such as commercial
printing, network cameras and advanced
medical equipment. All of that is aimed at
maximizing new growth opportunities.
A Shift Toward B2B
Fujio Mitarai
Chairman and CEO, Canon Inc.
e explains how the companys

various five-year plans, called
Phases, have carried it and why
the newest plan is the culmination of Canons strategy. During Phase IV
of the plan (20112015), a global recession
impacted all areas of our business, he
says. In response, we focused our energies on further strengthening our nancial structure so that we could emerge
stronger and better positioned.
Mitarai says he is determined to see
the company rise to even greater heights
through Phase V, which began last year.
I want the Canon of 2020 to look completely different from the way it looks
today, he says. Two key strategies are
driving that transformation: First, we
Japan
Mitarai explains that Canon has three

major business groupingscameras,
office equipment and industrial equipmentand all of them are currently working to boost their B2B offerings.
Cameras have always been a consumer
business, he says. But now we are looking beyond the consumer market and
developing more equipment for professionals, particularly for lmmaking.
Our Cinema EOS System lineup of
digital cinema cameras and lenses is
already a hit in the film industry. Cinematographers around the world like
getting such exceptional image quality
in a compact, lightweight system that is
extremely durable and so maneuverable
that they can shoot in incredibly tight
locations and even in lowlight conditions.
Our of f ice equipment
l i ne spr i nt er s , c opier s ,
projectors and moreare
already well known, and we
will continue striving to create state-of-the-art multifunction office-automation
equipment. We are also moving into commercial printing, Mitarai adds. There is
An Oc JetStream
high-speed continuous-feed
commercial printer
a strong and growing market for corporate in-house printing solutions that offer
accurate color reproduction and highquality output. Thanks to our acquisition
of Oc, a Dutch maker of printing equipment, our lineup now delivers all of this
plus excellent productivity.
As for industrial products, IC (integrated circuit) chips keep getting smaller.
Desktop PCs have given way to tablets
and cell phones, which means increased
demand for extremely high-precision
ICs. Our excellent semiconductor lithography equipment can meet the challenge
of ultrane nanometer-level patterning,
he explains.
Network Video Systems

Canon always has so many new technologies. What is the biggest story of
the moment?
Mitarai responds, That would be
network surveillance systems. Theyre
already becoming a hot grow th area
worldwide, and we are confident they
will keep on growing for the foreseeable
future. One of the keys to that business is
having outstanding cameras in place, and
that is our specialty.
For example, our new ME20F-SH

ultrahigh-sensitivity multipurpose camera makes use of Canons most advanced
image-sensor technology. As a result, it
can operate in extreme low-light situations, capturing clear color images with
minimal noise in as little as 0.0005 lux
of ambient light (roughly equivalent to an
ISO of 4,000,000), which means it can
use starlight to take photos that look as
though they were shot in broad daylight.
This is a truly amazing camera, and it is
already beginning to revolutionize network video surveillance.
To grow this business, Canon has
acquired some of the top players in the
eld, such as Axis Communications of Sweden, which is the leading company in network video solutions and is well known for
its outstanding image-processing technology. We also acquired a Danish company,
Milestone Systems, which is the market
leader in video-management software.
Each of these companies is outstanding
by itself, but combining them synergistically with Canons own technical expertise
produces something greater than the sum
of the parts. For one thing, Axis connects
us to roughly 75,000 partner rms including system integrators. By combining our
state-of-the-art imaging technology with
Axiss network image-processing technology and Milestones video-management
technology, we can offer a broad spectrum
of innovative network video solutions.
In the first quarter of this year Axis
will release an interchangeable-lens network camera, the AXIS Q1659, that can
use a range of standard Canon EF lenses.
By combining our various areas of technical know-how, we can create new value
for this growing eld. This will reinforce
our position as the market leader for some
time to come.
So, this technolog y is all aimed at
security surveillance, crime prevention
and the like?
Of course, security is a major concern
around the world today. But these systems
are just as valuable for monitoring the

manufacturing process in a factory, for
example, or doing market research in a
department store. Any situation that
benefits from having high-definition
color video and outstanding imagemanagement technology will showcase
these new systems, Mitarai explains.
I want the Canon of

2020 to look completely
different from the way
it looks today.
Fujio Mitarai,
Chairman and CEO, Canon Inc.
The ME20F-SH is Canons rst-ever

ultrahigh-sensitivity multipurpose camera.
The AXIS Q1659 interchangeable-lens

network camera combines Canon imaging
and Axis network technologies.
Imagining Better Health Care

Is there any other area of which the
Chairman is especially proud?
Thats a difficult question, Mitarai
says with a smile. But the answer is yes:
medical equipment. Canon has a very
long history with medical equipment.
We even made an X-ray camera back
in 1940. Since then, we have developed
many new technologies, from portable
X-ray devices to retinal cameras and
optical coherence tomography (OCT)

equipment that can scan high-resolution
3-D images inside the eyeball, such as the
blood vessels in the retina, to help diagnose ophthalmic disorders.
We plan to continue making advances
in the field of medical equipment and
aim to be a major player worldwide.
We have already begun a program of
both internal development and M&A to
achieve that goal.
Mitarai sits back for a moment, looking
pleased with something. Perhaps his coming prot forecasts?
To be honest, he says, nothing makes
me happier than to see Canon products
being used to support global health care
and to save lives. That has long been one
of our missions, and it is one we have
never forgotten. Our health care operations are not yet the biggest contributors
to our sales and prot numbers, but they
are among the operations of which we are
most proud.
Mitarais dream of completely transforming the company now seems close
to realization. Will Phase V be the nal
step, the culmination of his efforts?
No, there is no such thing. There is
always more to do, says Mitarai. Canon
is all about undertaking challenges, not
simply growing for the sake of getting
bigger. We are happy that while both
the parent company and the group are
growing sustainably, we are also making a meaningful contribution to global
society. Thats why Canon exists.
A native of Kyushu, Japan, Mitarai decided not to follow his father and brothers into medical school, but
instead joined Canon, where his uncle served as the rst President. Five years later, he was posted to the
U.S., where he stayed for 23 years, eventually becoming President of Canon U.S.A. Back in Japan, he was
later appointed President, CEO and then Chairman of Canon Inc.
global.canon
Japan
THK: Embarking on a New Era

For Akihiro Teramachi, Chief Executive Ofcer and President of THK CO., LTD., the future rests on the
coexistence of humans and robots. The uptake of robotics and articial intelligence (AI) is now proceeding at
an accelerated pace, and THK has accordingly enacted a new business strategy. New business opportunities
have emerged, and we must aggressively promote robotics and AI, he says.
he proliferat ion of robot ic s

and AI is fundamentally altering the relationship between
workers and the machines that
were developed during the Industrial
Revolution. So far, humans have used
machines, but now I am convinced that
machines are beginning to move in an
equal relationship with humans, as our
partners, Teramachi says.
In some areas, AI is already outpacing human beings, and many expect
that computers and AI will outpace the
capacity of the human brain sooner than
the original projection of 2045.
Teramachi has also been surprised by
the data-rening capabilities of AI, and
is concerned that humans may be losing
out to machines.
We must reconsider the relationship
of humans and machines, and make
efforts to become aware of what our ideal
situation should be, without turning
away from the present reality, he says.
An Evolving Business Strategy

Traditionally, THK has focused its business on two main pillars: global market
expansion and the increased adoption of
linear motion technology in new business areas, beginning with its LM Guide
core products.
Over the past year, in an effort to
keep pace with emerging technological
advances, Teramachi has added a third
directional pillarthe thorough application of robotics and AI, as well as IoTbased productsin order to promote
dynamic change throughout the company.
Akihiro Teramachi
Chief Executive Ofcer and President, THK CO., LTD.
While THK continues to favor conducting business face-to-facebelieving

the personalized approach helps it better
connect with clientsa new generation
of potential clients prefers to interface
with machines.
Amid expanding business opportunities, we must signicantly change the way
we do business; and in order to put these
efforts on rmer ground, we also need to
change ourselves, Teramachi says.
Standing at a Crossroads
Japa n it self fa ces numerous major
events in the lead-up to 2020, and it now
stands at a major crossroads. Teramachi
believes the Japanese people should

quickly adopt a new way of thinking in
order to move forward.
Japan is an adaptable society. When
people from other countries view us,
they probably think we are unbelievably
compliant! If we can understand and
accept the necessary changes, I believe
we will be capable of seizing the lead and
aggressively changing.
Ultimately, Teramachi notes, On a
longer-term trajectory, if we can alter
the direction of education, in line with
this stance, then in 20 or 30 years time,
I believe Japan will be a country capable
of leading the world.
Akihiro Teramachi graduated from Keio University in 1971 and joined THK CO., LTD. in 1975.
He became a Director in 1982 and Vice President in 1994, before taking over as CEO in 1997.
www.thk.com
Japan
RETIREMENT CHECKUP
401(k)
Interrupted
Trump says he will cut tax rates.
Should you pause your retirement
plan contributions?
BY ASHLEA EBELING
eres a heretical idea: Suspend

contributions to your 401(k) in
early 2017 while you wait to see
how much President Trump
and the Republican-controlled
Congress cut income tax rates and how they revamp the tax code. This advice is meant for high
earners who max out their allowed 401(k) contributions, possibly early in the year. (In other
words, its not for average workers struggling to
save 5% of each paycheck.)
Say youre earning $500,000 and years ago
elected to contribute 10% of your salary, pretax,
to your 401(k). In 2017, as in 2016, the legal dollar
maximum for employee pretax contributions is
$18,000 for younger folks and $24,000 for those
50 or older. So youll
reach that deferral
limit in May or June.
But depending on
how deeply rates are
cut and the state and
local income taxes
where you live and
plan to retire, you
might be better off
using some or all of
that $18,000/$24,000
allotment to fund a
Roth 401(k)an option now available in
about 60% of larger
plans, according to
benets consultant
Aon Hewitt. Or, if
you arent offered
a Roth, you might
decide to put less in
your 401(k) and more
in a taxable brokerage account.

Id hang back and wait and see what happens on tax rates, says Robert Gordon, president of Twenty-First Securities in New York.
Until you know what the story is, you cant
make an informed decision on it.
Warning: Before you pause 401(k) contributions, make sure you wont forfeit any of your
employers match. A majority of companies
allow you to stuff money into your 401(k) late
in the year and capture the full match. But a
third require you to contribute each paycheck
to snag the full amount, Aon Hewitt reports.
If the employer match isnt a problem, here
are three other issues to consider. First is your
tax rate now versus what you guess it will be in
retirement. You get no tax deduction for contributing to a Roth, but all withdrawals in retirement are tax-free and you arent forced to start
taking money out when you turn 70, as you
must from a pretax account. If your overall tax
rate will be the same or higher in retirement, a
Roth has the edge. But if, for example, you live
in high-tax California or New York City now
and plan to retire to income-tax-free Florida or
Nevada, your combined rate will likely go down.
So you should grab your deductions now.
The second factor: Congress is ckle and
future tax rates unknowable. Hedge your bets,
building up separate pretax, Roth and regular
taxable savings. Its tax diversication, explains Robert Keebler, a CPA in Green Bay, Wisconsin. The top federal income tax rate on salary
is now 39.6%, and Trump wants to cut it to 33%.
If he succeeds, consider it a window to build up
your Roth stash, not a forever promise.
The third consideration? Not all income is
taxed equally. Under current law, withdrawals
from pretax retirement accounts, including
401(k)s and IRAs, are taxed at high ordinary
income rates. But if you invest through a taxable account, you pay a lower top rate on longterm capital gains and corporate dividends.
That rate is now 23.8%, and Trump would
drop it to 20%. Moreover, House Republicans
want to chop the top rate on capital gains,
dividends and even interest income to just
16.5%. If that happens, Gordon points out,
those high-yield corporate bonds youve been
stuffing in your pretax 401(k) might be better
held in a regular brokerage account.
Complicated? Yep. But 2017 could end up
being the year to rethink how you save for retirement and which assets you hold where. F
ROBERT BABBONI FOR FORBES
INVESTING
NINETY SIX
The Fidelity Retirement Score.
Another way were making retirement planning clearer.
We introduced the Fidelity Retirement Score to make it easy to know where you stand.
But getting your score is just the beginning. If you move your old 401(k) to a
Fidelity Rollover IRA, youll get:
Clear, transparent language to help you understand your options
A one-on-one assessment of your plan to help you determine
what to do next, and why
Simple, straightforward pricing with no fees to open or maintain your account
Its your retirement. Know where you stand.
800.FIDELITY | Fidelity.com/score
Be sure to consider all your available options, including staying in plan,

and the applicable fees and features of each before moving your retirement assets.
There is no opening cost or annual fee for Fidelitys traditional, Roth, SEP, and rollover IRAs. A $50 account closeout fee may apply. Fund investments held in your account may be
subject to management, low-balance, and short-term trading fees, as described in the offering materials. For all securities, see Fidelity.com/commissions for trading commission and
transaction fee details.
IMPORTANT: The projections or other information generated by the Fidelity Retirement Score regarding the likelihood of various investment outcomes are hypothetical in nature,
do not reect actual investment results, and are not guarantees of future results. Results may vary with each use and over time.
The Fidelity Retirement Score is a hypothetical illustration and does not represent your individual situation or the investment results of any particular investment or investment strategy,
and is not a guarantee of future results. Your score does not consider the composition of current savings and other factors.
Guidance provided by Fidelity through the Fidelity Retirement Score is educational in nature, is not individualized, and is not intended to serve as the primary basis for your investment
or tax-planning decisions.
Investing involves risk, including the risk of loss.

The trademarks and/or service marks appearing above are the property of FMR LLC and may be registered.
Fidelity Brokerage Services LLC, Member NYSE, SIPC. 2016 FMR LLC. All rights reserved. 773775.15.0
EMERGING MARKETS
The Trump
Discount
Cartica Management is proving that
when it comes to emerging markets,
activism is probably more important
than whos living in the White House.
BY STEVE SCHAEFER
s the aftershocks from Donald

Trumps stunning presidential
victory keep investors guessing,
few sectors have suffered more
than emerging markets. Thats
just ne by Teresa Barger, chief executive of
the $2.7 billion emerging-markets specialist
Cartica Management, who gives little credence
to Trumps blustery rhetoric.
Being against globalization is like being
against winter and refusing to buy a winter
coat, Barger says, paraphrasing Nelson Mandela. She launched Cartica in 2008 with three
cofoundersFarida Khambata, Steven Quamme
and Mike Lubranoafter 21 years largely spent
funding businesses in developing countries.
Riddled with corrupt government actors,
empire-building families and outright fraud,
emerging markets are viewed as the Wild West
by most institutional investors. Many take a
diversied-index-fund approach, but Cartica
insists on activism, targeting unloved companies
with good businesses.
Take Carticas largest holdingAlsea, a Mexico City-based franchisee of Starbucks, Burger
King and Chilis. Before Carticas intervention in
2012, the company buried its results by brand.
Cartica took a small stake, joined its board
and began pounding the table for more disclosures. Alsea ultimately set up an investor
day in New York, which it now holds annually.
The stock is up more than 50% over the
past three years.

Trumps election
sent Alsea plummeting by 16%, but
Barger, 61, is doubling
down. Having nerves
of steel in the face of
volatility is a prerequisite for investing in
developing markets.
So far Cartica has annual returns of 9.9%
since 2010, compared
with an emergingmarkets benchmark
that has fallen 1% annually over the same
period.
Carticas approach
starts with a topdown analysis of economic data, currency
movements and political developments
to nd green light
countries. The common traits: a strengthening
local currency, improving credit proles and a
sense that the government is pursuing marketoriented reforms. Another favorite, more anecdotal measure is checking with local stockbrokers to see if well-heeled natives are bringing
investment dollars back into the country.
By the time equity ows show up, its too
late, says global strategist Khambata from Carticas Washington, D.C., office.
From there Cartica screens stocks using 40odd nancial metrics. Its sweet spot is underfollowed companies with market caps between
$1 billion and $5 billion. Another key is tapping
local contactstypically family members or
controlling shareholders.
What Trump-safe regions does Cartica like?
The Philippines, despite belligerent rhetoric
from President Duterte, is a favorite. Top holding: infrastructure conglomerate Metro Pacic.
The Phillipines has self-sustaining growth
because theyre generating a surplusnot living
off capital ows, Khambata says.
India, a ashing green light. Equities arent
cheap, but Prime Minister Modi is a doer,
Barger says, and the rupee is appreciating.
Mexico, Trumps chief target, warrants caution, but according to Barger, tough talk on trade
doesnt have to equal Draconian tariffs. F
Cartica Managements
Teresa Barger is making
emerging markets great
again.
INVESTING
THE HORATIO ALGER ASSOCIATION OF DISTINGUISHED AMERICANS PROUDLY PRESENTS THE
2017 HORATIO ALGER
AWARD WINNERS
Alain Bouchard (Canada)
Mellody Hobson
Roger S. Penske
Richard J Stephenson
Founder and Executive

Chairman of the Board
Alimentation Couche-Tard Inc.
President
Ariel Investments, LLC
Chairman and CEO

Penske Corporation
Founder and Chairman

Cancer Treatment Centers
of America
Harold B. Matzner
Byron Pitts
Chairman
CBA Industries Inc.
CBA Insert Distribution
Systems, Inc.
Chief National Correspondent

ABC News
John A. Elway, Jr.

Executive Vice President of
Football Operations and
General Manager
Denver Broncos Football Club
Valerie Montgomery Rice

President and Dean
Morehouse School
of Medicine
John H. Scully
Co-founder and
Managing Director
SPO Partners & Co.
Marcia G. Taylor
President and
Chief Executive Officer
Bennett International Group LLC
Lenard B. Tessler
Vice Chairman
Cerberus Capital
Management, L.P.
Honoring Perseverance, Integrity and Excellence
AL
CI
ATION
GER ASS
HORATI O
Each year the Horatio Alger Association of Distinguished Americans presents the Horatio Alger Award to select
individuals who have achieved success with hard work, perseverance and integrity in spite of facing personal and
professional obstacles. Award winners become lifelong Members of the Association, which provides deserving
young people with college scholarships. Our Members serve as role models and mentors, demonstrating what can
be achieved through the free-enterprise system.
A
F C
ANAD
www.horatioalger.org
www.horatioalger.ca
INVESTING
ETFS
Protect Yourself From

Ugly Currencies
For a modest fee, these funds will strip foreign
exchange risk out of your international portfolio.
ritish American Tobacco shares

have had a nice run in the past year,
rising from 37 to 46 in London.
But American buyers did not enjoy
the ride. Pounds lost value almost as
fast as the shares gained it. Translated back into
dollars, the stock went sideways.
Stack currency risk on top of equity risk and
its no surprise that venturing overseas makes
some investors seasick. But there is the option
to take Dramamine. When you invest, you can
make a side bet against the currency youre investing in. You could couple a purchase of BAT
or AstraZeneca or Shell with a short position in
sterling. You could marry Toyota to a yen short
and Roche to a Swiss franc short.
More realistically, unless you are investing
a gigantic sum: Have a fund do the shorting for
you. Eighty-nine exchange-traded funds have
currency hedges built into their portfolios, and
they account for $37 billion of the $456 billion in
foreign-stock ETFs, according to a Morningstar

tabulation.
WisdomTree Investments was the rst in
this business, with a hedged Japanese fund that
dates to 2006. Its now getting stiff competition
from PowerShares, BlackRocks iShares family
and Deutsche Banks X-trackers line. Their sales
pitch: Take some of the worry out of foreign
portfolios by removing the hefty contribution to
volatility (a fourth of it over the average ve-year
period) that comes from currency moves.
Insurance against weak foreign currencies
will cost you some money but not as much as
you might think. Hedged ETFs run roughly a
quarter of a percentage point more in annual
fees than unhedged ones. If the hedge gives you
the peace of mind to undertake global diversication you would otherwise have shunned, its
money well spent.
What about the cost of the forex positions?
In developed markets, currency hedges have a
cost pretty close to zero; arbitrageurs see to that.
Indeed, low interest rates in Europe mean that
currencies there can be off-loaded in the futures
market at a slight premium to spot prices.
Currency hedging is a wonderful exception to the rule that reducing volatility reduces
returns. Heres the theory, as expounded by
Jeremy Schwartz, director of research at WisdomTree. British investors in Shell are taking on
volatility in the value of the businessfrom oil
prices and so on. U.S. investors who buy Shell
and do nothing more are taking on that risk plus
additional volatility that comes from changes in
the value of the pound. By shorting the pound
when you buy Shell, you eliminate the second
contribution to volatility. You cant expect currency to add to return, Schwartz says. Its uncompensated risk. So you should get rid of it.
Note what is not part of the argument in
ROBERT BABBONI FOR FORBES
BY WILLIAM BALDWIN
RULES OF
LEADERSHIP
ACT WITH
CONFIDENCE
Trading nearly 16 million times an hour,* the SPDR S&P
500 ETF has given investors the confidence they need to
get in, or out of, the market with ease.
Visit spdrs.com/spy to learn more about SPDR S&P
500 ETF (SPY).
*Source: NYSE Arca, as of 9/30/2016.

ETFs trade like stocks, are subject to
investment risk, uctuate in market value and
may trade at prices above or below the ETFs net
asset value. ETF shares may not readily trade in
all market conditions. Brokerage commissions
and ETF expenses will reduce returns.
SPDR S&P 500 ETF Trust, an exchange
traded fund listed on NYSE Arca, Inc., seeks

to track an index of large-cap U.S. equity
securities.
SPDR , S&P and S&P 500 are registered
trademarks of Standard & Poors Financial
Services LLC (S&P) and have been licensed
for use by State Street Corporation. No
nancial product offered by State Street or

its afliates is sponsored, endorsed, sold or
promoted by S&P.
ALPS Distributors, Inc. is distributor for SPDR
S&P 500 ETF Trust, a unit investment trust.
ALPS Distributors, Inc. is not afliated with
State Street Global Markets, LLC.
Before investing, consider the funds investment objectives, risks, charges and expenses. To obtain a prospectus or summary
prospectus, which contains this and other information, call 1.866.787.2257 or visit www.spdrs.com. Read it carefully.
IBG-20879
Not FDIC Insured No Bank Guarantee May Lose Value
INVESTING
ETFS
INTERNATIONAL ETFS FOR THE COST-CONSCIOUS

FEES ON CURRENCY-HEDGED FOREIGN FUNDS HAVE BEEN COMING DOWN BUT STILL RUN A QUARTER OF A
PERCENTAGE POINT ABOVE THOSE ON RISKIER, UNHEDGED PORTFOLIOS.
EXCHANGE-TRADED FUND
TICKER
ASSETS
($BIL)
DATE
STARTED
EXPENSE
RATIO
HEDGED
DEUTSCHE X-TRACKERS MSCI EAFE HEDGED EQ
DBEF
$7.7
6/9/11
0.35%
DDWM
0.3
1/7/16
0.35
ISHARES CURRENCY HEDGED MSCI EAFE
HEFA
3.1
1/31/14
0.36
IQ 50 PERCENT HEDGED FTSE INTL
HFXI
0.2
7/22/15
0.36
DBAW
0.1
1/22/14
0.40
WISDOMTREE DYNAMIC CCY HDGD INTL EQ
DEUTSCHE X-TRACKERS MSCI ALWD EXUS HGDEQ
TRENDING
WHAT THE 50 MILLION
FORBES.COM USERS
ARE TALKING ABOUT.
FORBES.COM/INVESTING
SCHWAB INTERNATIONAL EQUITY
SCHF
6.9
11/3/09
0.07
ISHARES CORE MSCI EAFE
IEFA
14.9
10/18/12
0.08
VANGUARD FTSE DEVELOPED MARKETS
VEA
39.2
7/20/07
0.09
ISHARES CORE MSCI EUROPE
IEUR
1.0
6/10/14
0.10
ISHARES CORE MSCI PACIFIC
IPAC
0.8
6/10/14
0.10
VICTOR J. BLUE/BLOOMBERG
UNHEDGED
SOURCE: MORNINGSTAR.
PERSON
What happens over the very long pull?

favor of hedging. Schwartz is not predicting that
the dollar will continue to steam ahead, which it Morningstar fund analyst Patricia Oey studied
this question by comparing global portfolios that
has been doing since the election. He is simply
mix U.S. stocks with either hedged or unhedged
arguing that stripping out currency exposure
foreign stocks. Oeys paper portwill make your foreign advenfolios were a 60/40 blend of the
tures less scary.
THE DOLLAR
MOVES SIDEWAYS
S&P 500 and the MSCI indexes,
The past half-decade has
A TUMULTUOUS RIDE HAS TAKEN
rebalanced annually. There were
been a good time for dollar
THE DOLLAR BACK ALMOST TO
years when the hedged portfolio
patriots. Or, to put it equivaWHERE IT WAS 25 YEARS AGO.
raced ahead, others when the
lently, the period has been bad,
130
unhedged one did. But over 25
collectively, for the euro, yen
FOREIGN
EXCHANGE
years the two approaches to
and pound. That means U.S.
120
VALUE OF A
going international had identiinvestors who bought stocks
DOLLAR
110
cal risk-adjusted returns.
overseas and did not hedge
Oeys comparison was on
are full of regrets. They have
100
index returns; real-life perforlost in the currency markets
mance will be lower by whathalf of the 11% a year they
90
ever
fees you pay to the funds
were gaining with their stocks.
NOV 1991 = 100
manager. Whether these fees
(This is the return on an MSCI
80
are worth paying is a matter of
index of developed foreign
TRADE-WEIGHTED INDEX OF DOLLAR AGAINST
how much safety you seek.
markets, which include EuMAJOR CURRENCIES. SOURCE: ST. LOUIS FED.
WisdomTrees oldest
rope, Japan and Australia but
70
hedged
ETFs levy 0.48% to
not China or Brazil.) Those
11/91
12/00
12/08
12/16
0.58% in annual expenses.
who hedged got something
Newer offerings from both WisdomTree and its
close to the full 11%.
rivals are better buys (see table). One can hope
There have been other stretches, though,
that Vanguard gets into the fray, but for now
when the dollar tumbled (see graph). There
this mecca for cheapskates offers hedged stock
werent any hedged ETFs around at the time to
funds only in Canada and Australia.
prove the point, but if one had opened for busiIts a scary world out there. But its getting
ness in 2002 it would have looked like a clunker
less scary.
for the next ve years.
FINAL THOUGHT
Risk is like fire: If controlled it will help you; if uncontrolled it will rise up and
destroy you. THEODORE ROOSEVELT
STEVE ELLS
Founder of Chipotle
takes back company
reins; co-CEO Marty
Moran heads for the exit
in the wake of foodsafety mishaps.
COMPANY
GOLDMAN SACHS
The banks stock has
been a standout since
Election Day; meanwhile,
Donald Trump names
COO Gary Cohn to
the White Houses top
economic job.
IDEA
MILLENNIAL MISERY
A new study nds that
just half of Americas
30-year-olds are making
more (ination-adjusted)
than their parents did
at their age, down from
92% in the 1970s.
A NEW ALLIANCE OF SCIENCE AND SPIRITUALITY

A NEW FUTURE OF UNLIMITED POSSIBILITIES
YO U A R E A C O - C R E AT O R O F R E A L I T Y.
New York Times bestselling author D E E PA K C H O P R A and leading physicist
M E N A S K A FAT O S offer a bold understanding of who we are and how we can
transform the world for the better while reaching our greatest potential.
Visit discoveringyourcosmicself.com.
S TA R T R E A D I N G AT P R H . C O M / YO U A R E T H E U N I V E R S E
HARMONY BOOKS
EDUCATION FOR LIFE
Features
JANUARY 24, 2017
SILICON VALLEYS BLACK SHEEP 86

PHILLIP FROST: DOCTOR, INVENTOR,
INVESTOR, BILLIONAIRE 94
Artist Eric Waugh

started a design rm
at 18 and taught
himself to paint at 23.
Hes now one of the
worlds most famous
live paintershis
football-eld-size
painting Hero, which
depicts an adult
embracing a child,
made the Guinness
Book of World
Recordsand he put
those skills to work
for our 30 Under 30
feature. PAGE 68
PHOTOGRAPH BY JAMEL TOPPIN
Music
Jason Aron, 28;
Anthony Li, 28
Managers, Halsey
Sophie Ash, 28
Project manager,
Parkwood
Entertainment
Kelsea Ballerini, 23
Musician
Bibi Bourelly, 22
Musician
Emma Burgess-Olson,
28; Frankie Decaiza
Hutchinson, 29;
Christine McCharrenTran, 28
Cofounders, Discwoman
Alessia Cara, 20
Musician
Patrick Corcoran, 26
Manager, Chance the
Rapper
Daesung, 27;
G-Dragon, 28;
Seungri, 26;
Taeyang, 28; T.O.P., 29
Musicians, Bigbang
Daya, 18
Musician
Desiigner, 19
Musician
Derek Dolin, 28
Senior manager,
Three Six Zero
Josh Dun, 28;
Tyler Joseph, 28
Musicians, Twenty One
Pilots
Taylor Dye, 21;
Maddie Marlow, 21
Musicians, Maddie & Tae
G-Eazy, 27
Musician
Gallant, 25
Musician
Michael George, 27
Artist manager, SB
Projects
Micah Hendler, 27
Founder, YMCA
Jerusalem Youth Chorus
Jeremih, 29
Musician
Joe Kay, 27
Cofounder, Soulection
Tory Lanez, 24
Musician
Logic, 26
Musician
Julia Michaels, 23
Musician
Jeffrey Ponchick, 29
Cofounder, Repost
Network
Charlie Puth, 25
Musician
Troye Sivan, 21
Musician
Justine Skye, 21
Musician
Drew Taggart, 27
Musician, the
Chainsmokers
La Mar Taylor, 26
Creative director, the
Weeknd
Bryson Tiller, 23
Musician
Lil Yachty, 19
Musician
JUDGES
Jason Derulomusician
Halseymusician
Anthony Salehcofounder,
QueensBridge Venture
Partners
Gallant, 25
MUSI CI A N
CREDIT TK
When I hear his voice, I just lose it. Thats what Elton John had to say
about Gallant shortly before they performed the young singers breakout
hit, Weight in Gold, together in London last September. Born Christopher
Gallant III, he graduated from New York University in 2012 and moved to
Los Angeles to build his own, unique sound, blending elements of R&B,
alternative rock, soul and electronic music. His 2016 debut, Ology, is
up for a Grammy for Best Urban Contemporary Album, and he
averages 1.2 million listeners per month on Spotify alone. In 2016
he took his act on the road, doing 77 shows in eight countries.
Thats just the beginning, as far as hes concerned: I honestly
dont think that Ive necessarily had my big break yet.
1941 WILD LILY WINDBREAKER BY COACH ($495); COTTON TROUSERS BY PT PANTALONI TORINO ($425);
CLYDE SNEAKERS IN CORDOVAN PATENT LEATHER BY PUMA ($110).
30 UNDER 30
Meet the Class of 2017. These 600 young
innovators30 game changers in 20 industriesare
challenging the conventional wisdom and rewriting
the rules for the next generation of entrepreneurs,
educators and entertainers. Their individual
passions have been interpreted by artist Eric Waugh,
who created whimsical paintings of their claims to
fame in less than ten minutes during photo sessions
in New York and San Francisco. The result is a
picture-perfect marriage of art and commerce.
EDITED BY Caroline Howard with Natalie Sportelli
ART & STYLE: Susan Adams, Keren Blankfeld, Michael Solomon, Glenda Toma. EDUCATION: Caroline Howard, Justin Conklin. ENERGY: Christopher Helman, Aaron Tilley.
FINANCE: Nathan Vardi, Antoine Gara, Corinne Jurney. FOOD & DRINK: Maggie McGrath, Natalie Sportelli, Abram Brown. GAMES: David Ewalt, Matt Perez. HEALTH CARE:
Sarah Hedgecock, Matthew Herper. HOLLYWOOD: Natalie Robehmed, Madeline Berg, Hayley Cuccinello. LAW & POLICY: Kathryn Dill, Christopher Denhart, Daniel Fisher,
Avik Roy. MANUFACTURING & INDUSTRY: Amy Feldman, Joann Muller, Alex Knapp. MARKETING & ADVERTISING: Jennifer Rooney, Lilly Knoepp. MEDIA: Emily Inverso, Kate
Vinton, Madeline Berg. MUSIC: Zack OMalley Greenburg, Natalie Robehmed. RETAIL & E-COMMERCE: Clare OConnor, Vicky Valet. SCIENCE: Alex Knapp, Matt Perez, Sarah
Hedgecock. SOCIAL ENTREPRENEURS: Michela Tindera, Alexandra Wilson, Parul Guliani. SPORTS: Dan Kleinman, Jordan Lebeau, Chris Smith. TECH/CONSUMER: Ryan Mac,
Brian Solomon. TECH/ENTERPRISE: Kathleen Chaykowski, James Plafke. VENTURE CAPITAL: Alex Konrad, Jordan Lebeau.
PHOTOGRAPHY: Jamel Toppin for FORBES.

CREATIVE STYLE DIRECTOR: Joseph DeAcetis. STYLE ASSOCIATE: Juan Benson.
HAIR & MAKEUP EAST: Suzannah Hallili. HAIR & MAKEUP WEST: Mary Reid. PRODUCTION ASSISTANCE: Janet Baus.
Food & Drink

Lizzi Ackerman, 29
Cofounder, Birch Benders Micro-Pancakery
Drew Anderson, 29
Cofounder, Cleveland Kraut
Tatiana Birgisson, 27
Founder, Mati Energy
Matt Bodnar, 29
Partner, Fresh Hospitality
Ross Burack, 27
Cofounder, Choza Taqueria
Andrew Chmielewski, 29
Founder, Daves Sweet Tooth
Chloe Coscarelli, 29
Founder, By Chloe
Simon Davies, 27
Chef de cuisine, Alinea
Jake Dell, 29
Owner, Katzs Delicatessen
Zachary Engel, 28
Chef de cuisine, Shaya
Miguel Garza, 29
Cofounder, Siete Family Foods
Jorge Gaviria, 29
Founder, Masienda
Andrew Gonzalez, 25
Founder, Night Owl Cookie
Joey Grassia, 29
Founder, Kutoa Health
Amir Hosseini, 29
Cofounder, Curry Up Now
Kate Kavanaugh, 28
CEO, Western Daughters Butcher Shop
Michael Kennedy, 29
Founder, Component Wine Company
Michael Steven Levine, 25
CEO, Global Food Solutions
Jen Martin, 28
Cofounder, Pipsnacks
Kwame Onwuachi, 27
Chef/owner, the Shaw Bijou
Ian Purkayastha, 24
Founder, Regalis Foods
Maxim Razmakhin, 28
Cofounder, Thirstie
Jourdan Samel, 28; Ari Sherman, 29
Cofounders, Hemp Health
Michael Shoretz, 29
CEO, Enlightened
Katlin Smith, 28
Founder, Simple Mills
Daniela Soto-Innes, 26
Chef de cuisine, Cosme
Dominik Stein, 29
Cofounder, Verts Mediterranean Grill
Keeley Tillotson, 24; Erika Welsh, 25
Cofounders, Wild Friends Foods
Tiffany Yam, 29
Partner, Salt Partners
Molly Yeh, 27
Creator, My Name Is Yeh
30 UNDER 30
Jeremy
Fiance, 25
MANAGING PA RTNER,
T HE HOUSE FUN D
This UC Berkeley grad is delivering the message of

school spirit, entrepreneurship and experiential education. His platform is the
House Fund, which launched
in April 2016, a $6 million
pre-seed and seed-stage
venture fund dedicated to
entrepreneurs with Berkeley
ties: students, faculty, university employees and its half a
million alumni.
To date the House Fund
has funded more than 20
companies, spanning robotics, education and AI, with an
average investment between
$50,000 and $250,000.
Having seen thousands of
companies come
out of this community, we have a good
sense of the big
ideas when we see
them. We have a sense
of the passion and re
in an entrepreneur when
they really want to bring
this company to life, says
Fiance, who was previously a managing partner at
Dorm Room Fund SF, a venture fund run by students for
student startups. I have [Cal]
shirts, hats, posters. I bleed
blue and gold.
JUDGES
Alex Guarnaschellichef/
restaurateur, Butter
Paul Rosspresident and CEO,
Edrington Americas
Marcus Samuelssonchef/
restaurateur, Red Rooster Harlem
Lee Schragerfounder, South Beach
and New York Wine & Food Festivals
Miguel Garza, 29
COFOUNDER, SIETE FAMILY FOODS
For years, when Miguel Garza sat down at the family dinner table in Laredo,
Texas, the Mexican-American spread was missing a very key component: our
tortillas. His older sister Veronica had an autoimmune disease that forced her to
remove all grain from her diet, and for moral support the entire Garza clan also
made do without, using lettuce leaves for their tacos. In 2014, Veronica started making tortillas from almond our. It was grain-free and, more importantly,
abuela approved. When the choosy family matriarch gave the tortilla her blessing, Miguel knew the family was onto something. He began pitching the tortillas
to local grocery stores and co-ops; lines of cassava-and-coconut (or chia) tortillas quickly followed.
Today, the family dinner workaround has blossomed into Siete Family
Foods, which is among the just 2% of Latino-owned businesses doing north of
$1 million in revenue each year. The customer wants clean labels, simple ingredients, real food. Grain-free, by proxy, stands for that, says Miguel, who is
Sietes CEO.
Next up for the company: a line of grain-free tortilla chips, which will roll out
in Whole Foods nationwide in January. We see ourselves as a healthy Mexican
food company, he says. You know Annies Homegrown, which does organic
traditional American cuisine? We see ourselves as that, but for Mexican food.
MIGUEL GARZA: WALLACE & BARNES SELVEDGE DENIM SHIRT BY J. CREW ($148); BYRON
JEANS BY HUDSON JEANS ($189); NEW BALANCE 420 SNEAKERS BY NEW BALANCE($70).
JEREMY FIANCE: BOMBER JACKET BY ZANONE ($975); COURAGE JEANS BY 34 HERITAGE
($190); SUEDE SNEAKER BY SUPRA ($80).
Education
Hollywood & Entertainment
Jacob Allen, 28; Marie Dandie, 27

Cofounders, pilotED Schools
Louise Baigelman, 29
Cofounder, Story Shares
Blair Brettschneider, 27
Founder, GirlForward
Gregory Brown, 28; Mitchell Moffit, 28
Creators, AsapSCIENCE
Nicole Cardoza, 27
Founder, Yoga Foster
Hardy Farrow, 26
Executive director, Lets Innovate Through
Education
Jeremy Fiance, 25
Founder, the House Fund
Jason Field, 27
Founder, BrainStation
Jonathan Gottfried, 26; Mike Swift, 27
Cofounders, Major League Hacking
Mendell Grinter, 25
Founder, Campaign for School Equity
Luke Heine, 22; Cole Scanlon, 20
Codirectors, Fair Opportunity Project
Ryan Hoch, 29
Cofounder, Overgrad
Connie Hu, 27; Joseph Schlesinger, 27
Cofounders, ArcBotics
Sieva Kozinsky, 26
Cofounder, StudySoup
Jenna Leahy, 28
Co-CEO, CASA Academy
Jordan Levy, 24; Andrew Pohle, 27;
Jake Schaufeld, 24
Cofounders, Real Time Cases
Denisse Rojas Marquez, 27;
Jirayut New Latthivongskorn, 27
Cofounders, Pre-Health Dreamers
Jeffrey Martn, 25;
Dylan Stone-Miller, 26
Cofounders, honorCode
Elijah Mayeld, 27
Vice president of new technologies,
Turnitin
Sophia Parsa, 25;
Shakib Zabihian, 25
Cofounders, toot
Jacobi Petrucciani, 22; Prahasith
Veluvolu, 21; Colton Voege, 21
Cofounders, Mimir
Evin Floyd Robinson, 26;
Jessica Santana, 27
Cofounders, New York on Tech
Rachel Romer Carlson, 28;
Brittany Stich, 28
Cofounders, Guild Education
Shanyn Ronis, 29
Founder, Education Global Access
Program
Jeff Sorensen, 27
Founder, optiMize
Leandra Tejedor, 25
Cofounder, Vidcode
Joe Vasquez, 27
Codirector, Runway Incubator
Cliff Weitzman, 22
Founder, Speechify
Alec Whitters, 29
CEO, Higher Learning Technologies
Tamara Wilkerson, 26
Executive director, African American
Teaching Fellows
Dene Benton, 25
Actor
Quinta Brunson, 27
Development partner,
BuzzFeed Motion Pictures
Jessica Chou, 26
Producer
Kiersey Clemons, 23
Actor
Emory Cohen, 26
Actor
Tanya Cohen, 28
Motion picture literary and
talent agent, WME-IMG
RJ Cyler, 21
Actor
Cameron Dallas, 22
Digital star
Hilary Duff, 29
Actor
Alden Ehrenreich, 27
Actor
Elle Fanning, 18
Actor
Elliot Fletcher, 20
Actor
JUDGES
Stacey ChildressCEO, NewSchools Venture
Fund
Arne Duncanmanaging partner, Emerson
Collective
Wendy Koppcofounder, Teach for All
Marcus Noelfounder, Heart of Man Ventures
Laura Gordon, 29
Television literary agent,
ICM Partners
Lucas Hedges, 20
Actor
Ryan Higa, 26
Digital star
Jacquie Katz, 29
Television literary agent,
Creative Artists Agency
Tyler Oakley, 27
Digital star
Lele Pons, 20
Digital star
Trevante Rhodes, 26
Actor
Margot Robbie, 26
Actor
Charles Rogers, 29
Director/producer/writer
Oren Rosenbaum, 27
Digital media agent,
United Talent Agency
Ashton Sanders, 21
Actor
Justice Smith, 21
Actor
Lakeith Staneld, 25
Actor
Melissa Villaseor, 29
Comedian
Mia Wasikowska, 27
Actor
Samira Wiley, 29
Actor
Krysty Wilson-Cairns, 29
Writer
Evan Rachel Wood, 29
Actor
JUDGES
David LindeCEO,
Participant Media
Issa Raeactor/writer/
producer, Issa Rae
Presents
Jill Solowaywriter/
director, Topple
Productions
Tyler Oakley, 27
DI GI TA L STA R
YouTube provides a microphone for

marginalized voices, says comedian and LGBT activist Tyler Oakley. The platform has amplied
his voice to reach nearly 8.1 million subscribers, who tune in to
watch his talk-show-like videos, in which he muses on topics both light (celebrity crushes and viral videos) and heavy
(politics and sexuality).
When I was younger and
still in the closet, I couldnt just
Google coming-out story to
help me articulate what I was
going through, he says.
With spiky bleached hair
and signature geek-chic glasses,
Tyler counts Michelle Obama, Kerry
Washington and Ricky Martin among
his fans, but his biggest proponent is Ellen DeGeneres, with whom he has a production deal. A 2015
book of personal essays, Binge, became a New York
Times bestseller, and he has raised over $1 million for
the suicide hotline the Trevor Project. YouTube is a
place for people from all over the world to feel less
alone, Oakley says.
Marketing &
Advertising
30 UNDER 30
James Heller, 29
COFOUNDER, WRAPIFY
As a kid, James Heller would beg his father to take him to the Porsche dealership to sit in the cars. I was completely
obsessed with German sports cars,
said Heller, who bought his own
Porsche when he was 26. Two
years later he sold that car
and cashed out his 401(k) and
savingsto launch Wrapify, a
startup with $2.9 million in funding that pays everyday people an average of $350 a month to wrap their cars in
advertisements and simply drive around.
Sure, advertising on cars isnt new, but
Wrapify adds a digital twist. Its app automatically alerts drivers to new ad campaigns and provides brands with a dashboard that tracks how many people are
seeing the ads in real time. Wrapify has
35,000 drivers in 27 cities and counts Anheuser-Busch, Petco and eBay as clients.
In the next year Heller is looking to triple
his current $3 million in sales. I dont
take no for an answer. I just dont.
Daniel Altmann, 29; Eric Posen, 28

Cofounders, Naritiv
Andy Bossley, 28
Senior manager of global
marketing campaigns, IBM
Vincent Cacace, 26
Founder, Vertebrae
Eva Chan, 27; Daniel Rodic, 26;
Elena Sahakyan, 29
Cofounders, Exact Media
Eden Chen, 29
Founder, Fishermen Labs
Tony Chen, 26
CEO, Channel Factory
Marina Cockenberg, 29
Director of digital, The Tonight
Show Starring Jimmy Fallon, NBC
Gregory Constantine, 27
Global music strategy and cultural
partnerships lead, Smirnoff, Diageo
Alex Dahan, 24; Eric Dahan, 26;
Felix LaHaye, 28
Cofounders, InstaBrand
Bobak Emamian, 29
Cofounder, Prolic Interactive
Andrew Fabbri, 29;
Shaun Sheikh, 25
Cofounders, Jump 450 Media
Jared Feldman, 28
Founder, Canvs
Laura Foti, 26
Head of paid media and
analytics, GE Digital
Lauren Gallo, 29
Senior digital marketing and
communications lead,
Apple Retail, Apple
Devon Galloway, 29
Cofounder, Vidyard
Daniel George, 25
Founder, Limitless Creative
Julieanna Goddard, 26
Founder, YesJulz
James Heller, 29
Cofounder, Wrapify
Leyda Hernandez, 28
Director of marketing, iSpot.tv
Mansi Jayakumar, 29
Global director of innovation, Y&R
Salone Kapur, 27
Head of city marketing,
Google Fiber, Google
Jan-Niklas Kokott, 29
Head of product and customer
insight, Glossier
Jennifer Lo Chan, 26
Marketing campaign
manager, Nvidia
Shaun McBride, 29
Founder, Shonduras
Eliana Murillo, 28
Head of multicultural
marketing, Google
Sean OBrien, 27; Evan Wray, 27
Cofounders, Swyft Media
Aniq Rahman, 29
President, Moat
Justin Rezvani, 28
Founder, theAmplify
James Shani, 28
Founder, Madison+Vine
Kevin Yamazaki, 29
Founder, Sidebench
JUDGES
COTTON SUIT BY RAVAZZOLO ($3,300); COTTON SHIRT ($50) AND TIE ($45) BY VAN HEUSEN;
SILK POCKET SQUARE BY CHARLES TYRWHITT ($20); LEATHER AND ELKSKIN SHOES BY SANTONI ($920).
Linda BoffCMO, GE
Bonin Boughhost of Cleveland
Hustles, CNBC
Rachel Tipographfounder, MikMak
Abby Wambach2015 FIFA Womens
World Cup champion
Retail &
E-commerce
Alex Adelman, 27
Founder, Cosmic
Ben Aneesh, 26; Natalie Gray, 29
Cofounders, Cover
Andrew Brooks, 29
Founder, Vianel
Allen Brouwer, 28
Cofounder, BestSelf
Chloe Burch, 25; Neely Burch, 26
Cofounders, Neely & Chloe
Jennifer Chong, 28
Cofounder, Linjer
Nell Diamond, 28; Katherine
Kapnick, 26
Cofounders, Hill House Home
Ellie Dinh, 29
Cofounder, Girlfriend Collective
Matt Dronkers, 27; Andrew
Nilon, 27
Cofounders, Electric Family
Laura Dweck, 27; Michael
Dweck, 29
Cofounders, Basic Outtters
Muhga Eltigani, 25; Sam
Roberts, 26
Cofounders, NaturAll Club
Alex Fenkell, 27; Jordan
Katzman, 27
Cofounders, SmileDirectClub
Yakir Gola, 23; Rafael Ilishayev,
23
Cofounders, goPuff
Molly Hayward, 28
Founder, Cora
Meika Hollender, 29
Cofounder, Sustain
Steven Izen, 26
Founder, Lokai
Marta Jamrozik, 26; Misha
Laskin, 26
Cofounders, Claire
Kylie Jenner, 19
Founder, Kylie Cosmetics
Erika Jensen, 27
Cofounder, the Flex Co.
Lauren Kassan, 29
Cofounder, the Wing
Furqan Khan, 28
Founder, Kixify
Michelle Lin, 24; Wayne Lin, 28
Cofounders, Live Love Polish
Emily Motayed, 28
Cofounder, Havenly
Nicole Naja, 29
Founder, Industry Standard
Steven Ng, 24
Founder, Elliot Havok
Brett Podolsky, 28; Jonathan
Regev, 29
Cofounders, the Farmers Dog
Jon Richards, 29
Cofounder, Nomatic
Cynthia Salim, 29
Founder, Citizens Mark
Justin Schneider, 28
Founder, Wolf & Shepherd
Amber Venz Box, 29
Cofounder, LikeToKnowIt
JUDGES
Tyler Haneyfounder, Outdoor
Voices
Jennifer Hymancofounder, Rent
the Runway
Toni Kofounder, NYX Cosmetics
Alli Webbfounder, Drybar
Emily Motayed, 28
CO FOUNDER, HAVENLY
When she cofounded Havenly with her older sister Lee Mayer in
2013, Emily Motayed didnt know much about interior design
other than that she couldnt afford it. After moving into her rst
big-girl apartment in New York, she discovered that traditional interior designers werent interested in working within her modest budget. Everyone deserves to have a beautiful home, whether
you have a $1,000 or a $50,000 budget, she says.
Working with a roster of more than 200 freelance interior designers, Havenly charges a at fee of either $79 or $199
per room. Every interaction, from agreeing on a budget to assembling a shopping list, takes place online. The Denver-based
company also sells furniture, allowing shoppers to buy a whole,
Instagram-ready look. In three years Motayed and Mayer have
increased Havenlys team from 2 to 60 and raised $13.3 million in funding.
ANAA-JUXTAPOSE ROSE SLEEVELESS FIT AND FLARE MIDI DRESS BY TED BAKER ($369);
LEATHER GODIVA PUMP BY SERGIO ROSSI ($630). PICTURE FRAMES COURTESY GILL & LAGODICH
Media
Libby Brittain, 27
Partner strategy lead, news,
Facebook
Kristina Budelis, 28
Cofounder, KitSplit
Rhonesha Byng, 27
Founder, Her Agenda
Emma Cline, 27
Author
Leslye Davis, 26
Photo and video journalist,
New York Times
Anna Therese Day, 28
Journalist
Brian Donohue, 27
CEO, Instapaper
Clay Dumas, 28
Chief of staff and senior
advisor, Office of Digital
Strategy, the White House
Brandon Feldman, 29
News & politics manager,
YouTube
Ashley Ford, 29
Development executive, Web
series and video, Matter Studios
Taylor Freeman, 26;
Will Mason, 26
Cofounders, Upload
Vinny Green, 25
Director, business
development, Snopes
Yaa Gyasi, 27
Author
Isabelia Herrera, 25
Music editor, Remezcla
John Herrman, 29
David Carr Fellow,
New York Times
Daniel Houghton, 28
CEO, Lonely Planet
Greg Howard, 28
David Carr Fellow,
New York Times Magazine
Sarah Jeong, 28
Contributing editor,
Motherboard, Vice Media
Alexander Klokus, 25;
Jordan Lejuwaan, 26
Cofounders, Futurism
Amy Levin, 29
Founder, CollegeFashionista
Wesley Lowery, 26
National reporter, Washington Post
Adam Marshall, 28
Knight Foundation litigation
attorney, Reporters Committee
for Freedom of the Press
Ashley McCollum, 29
General manager, Tasty, BuzzFeed
Griffin McElroy, 29
Founding editor, Polygon
John Meyer, 21
Founder, Fresco News
Evan Puschak, 28
Creator, The Nerdwriter
Hayden Rockwell, 26
Lead senior story editor, Snapchat
Alex Schmider, 27
Senior strategist,
Transgender Media, GLAAD
Molly Swenson, 29
CMO, RYOT
Jia Tolentino, 28
Contributing writer,
NewYorker.com
30 UNDER 30
Daniel Houghton, 28
CEO, LONELY PLANET
In 2013, three years after graduating from Western

Kentucky University, Daniel Houghton took the helm
of the now 44-year-old travel brand Lonely Planet.
One of his rst tasks? Laying off 75 people, one-fth
of the companys employees, many of whom worked
on LPs free-spirited print guidebooks. Industrywide,
guidebook sales plummeted 40% from
2007 through 2012, so Houghton decided LP had to focus on digital to
survive. One year after he took over,
digital accounted for 30% of LPs
revenue, and print sales also rebounded, up 27% since 2013.
After college Houghton started his own production company,
Houghton Multimedia, which got
the attention of tobacco billionaire Brad Kelley. The
two created NC2 Media,
through which Kelley acquired LP for $77
million. You have to
be respectful of [the]
past while trying to
plow into the future,
Houghton says. That
future is lled with
a agship Guides
app (nearly a million
downloads in the
past year) and partnerships with companies like Samsung.
LP is the largest
guidebook player,
according to Nielsen,
owning 25% of the
nearly $90 million
guidebook market.
Matt Humphrey, 29
COFOUNDER, LENDINGHOME
Buying a home may be part of the American dream, but

mortgages can be a nightmare. Matt Humphrey wants to
change that. His three-year-old startup has raised more than
$100 million and originated over $1 billion in loans. The platform cuts out banks by connecting borrowers directly with
investors. The approach opens up credit to unconventional
buyers like self-employed entrepreneurs, who often hit walls
with traditional lenders.
The mortgage world today is mired by complexity, a
lack of technology and inefficiency, Humphrey says. Not
only can we beat the banks at their own game doing the
standard products better, faster and cheaper, but we can expand access to credit.
Humphrey, who started college when he was 13, has been
an entrepreneur since 2005. His rst big exit came when he
sold a Groupon-like daily-deal site called HomeRun for over
$100 million in 2011. This year LendingHome established an
institutional channel, bundling $126 million in loans into tradable securities, fueling a near tripling of revenues.
JUDGES
Jim BankoffCEO, Vox Media
Pete Cashmorefounder, Mashable
Kate Leehead of content
development, Medium
Shane Smithcofounder, Vice
Media
DANIEL HOUGHTON: 1905 WOOL SUIT ($598), 1905 COTTON SHIRT ($80) AND 1905 SILK TIE ($60) BY JOS. A. BANK; CALFSKIN WINGTIP BY BY JOHNSTON & MURPHY ($198).
MATTHEW HUMPHREY: COTTON SHIRT BY CHARLES TYRWHITT ($69); BYRON JEANS BY HUDSON JEANS ($210); SUEDE AND LAMBSKIN SHOES BY ESQUIVEL ($875).
Finance
Science
Anish Abuwala, 29
Portfolio manager, Caxton
Associates
Raja Bobbili, 29
Analyst, Abrams Capital
Michael Buckley, 29
Analyst, Duquesne Capital
Management
Francis Chung, 29
Quantitative developer,
IEX Group
Kerri Cohen Saperstein, 29
Vice president, Goldman Sachs
Richard Craib, 29
CEO, Numerai
Ben Friedman, 29
Portfolio manager, CQS
Akshay Goyal, 28
Vice president, Starwood Capital
Zach Hamed, 23
Product manager, Goldman Sachs
Matt Humphrey, 29
Cofounder, LendingHome
Rachel Hunter, 27
Associate, Apollo Global
Management
David Knopf, 28
Partner, 3G Capital
Dhruv Maheshwari, 28
Research analyst,
Point72 Asset Management
Eugene Marinelli, 29
Chief technology officer, Blend
Anthony Massaro, 29
Partner, Pershing Square
Capital Management
Ann Mathews, 28
Alissa Merar, 29
Vice president, Bank of America
Alex Nomitch, 29
Portfolio manager,
Viking Global Investors
Guillaume Rabate, 28
Vice president, Morgan Stanley
Daniel Rasmussen, 29
Founder, Verdad Fund Advisers
Niraj Shah, 29
Senior associate,
RedBird Capital Partners
David Smalling, 29
Director, BlackRock
Ben Solarz, 29
Principal, SPO Partners
Andy Stafman, 29
Partner, Sachem Head
Capital Management
Colter Van Domelen, 29
Partner, Tiger
Global Management
Kelly Wannop, 29
Associate, Blackstone Group
Brandon Watkins, 28
Benjamin Wu, 28
Partner, Huntsman
Family Investments
Franklin Zhao, 29
Global macro trader,
Commonwealth
Opportunity Capital
Katy Zhao, 29
Vice president, Morgan Stanley
Michelle Atallah, 26
Ph.D. candidate, Stanford University
Michael Barron, 27
Senior scientist, AeroFarms
Brandon Carpenter, 25
Cofounder, Feynman Nano
Xi Chen, 29
Assistant professor, New York University
Huanyu Cheng, 28
Assistant professor,
Pennsylvania State University
Timothy Downing, 29
Assistant professor, University of
California, Irvine
Davina Durgana, 28
Senior statistician, Walk Free Foundation
Melissa Gymrek, 28
Assistant professor, University
of California, San Diego
Karan Jani, 28
Ph.D. candidate, Georgia Institute of
Technology
Michael Johnson, 27
Cofounder, Visikol
Michelle Kunimoto, 23
Masters candidate, University of British
Columbia
Matthew Lovett-Barron, 29
Postdoctoral fellow,
Stanford University
Luther McDonald, 28
University of Utah
Stefanie Mueller, 29
Massachusetts
Institute of Technology
Jeff Nivala, 29
Postdoctoral fellow, Harvard
Medical School
Olivier Noel, 28
Cofounder, DNAsimple
Korin Reid, 29
Senior data scientist, McKesson
Daisy Robinton, 29
Postdoctoral fellow, Harvard University
Monica Rosenberg, 28
Ph.D. candidate, Yale University
Jacob Rubens, 29
Associate, Flagship Pioneering
Phiala Shanahan, 26
Postdoctoral fellow, Massachusetts
Arun Sharma, 26
Postdoctoral fellow, Harvard Medical
School
Mark Smith, 29
Cofounder, OpenBiome
Kenneth Smith, 27
Structural dynamics engineer, NASA
Langley Research Center
Justin Solomon, 29
Assistant professor, Massachusetts
Daniel Szar, 28
Assistant professor, University of
Colorado, Boulder
John Urschel, 25
Ph.D. candidate, Massachusetts
Katharina Volz, 29
Founder, Razor
Diane Wu, 29
Cofounder, Trace Genomics
Alice Zhang, 28
Cofounder, Verge Genomics
JUDGES
Jennifer Fanportfolio manager,
Millennium Management
Thomas H. Leefounder, Lee
Equity Partners
Sonia Gardnercofounder,
Avenue Capital Group
Alice Zhang, 28
COFOUNDER, VERGE GENOMICS
While pursuing an M.D./Ph.D. at UCLA, Alice Zhang was shocked to learn a fact every
drug researcher knows all too well: 90% of medicines that start human trials fail. Its
still largely a guessing game, she says. Her startup, Verge Genomics, is the latest in
a long line of biotechs that think merging the latest in computer science with new
technologies for decoding the human genetic code can provide a solution.
Whats special: Verge has the guts to target Alzheimers and Parkinsons,
areas most drug companies have abandoned as hopeless. The seven-person startup raised $4 million from such rms as IA Ventures and Draper Associates, and assembled multiple advisors, including Alzheimers research luminary Paul Aisen,
Harvard biotech guru George Church and the chief medical officer of the biotech rm Alkermes. Using machine-learning algorithms to understand networks of
genes is an exploding scientic eld. Maybe this time it will work as a business.
JUDGES
Cigall Kadochassistant
professor, Dana-Farber Cancer
Institute
Robert Langerinstitute
professor, MIT
John Scalziscience ction author
LEATHER JACKET($798) AND BLACK AND PRINTED DRESS ($398) BY POLO RALPH LAUREN;
LEATHER AND SUEDE GRACE GRAND SANDAL BY COLE HAAN ($270) BY COLE HAAN.
Venture Capital
Steve Anastos, 27
Principal,
Bain Capital Ventures
Lisa Barnett, 27
Partner, Sherpa Foundry
Logan Bartlett, 29
Vice president,
Battery Ventures
Phil Brady, 23;
Clancey Stahr, 23
Managing partners,
GoAhead Ventures
Mackey Craven, 28
Partner, OpenView Partners
Jason Duboe, 28
Principal, Chicago Ventures
Jerrod Engelberg, 28
Head of venture ops and data
science, FundersClub
Miles Grimshaw, 25
Investor, Thrive Capital
TJ Hennessy, 27
Principal, Arena Ventures
Mohammad Islam, 27
Senior associate, DFJ
Nimi Katragadda, 28
Principal, BoxGroup
Abie Katz, 26
Principal, August Capital
Jocelyn Kinsey, 26
Senior associate, DFJ
Alex Lim, 28
Senior associate, Institutional
Venture Partners
Michael Ma, 29
General partner,
Liquid 2 Ventures
Jake Medwell, 28;
Drew Oetting, 26
Founding partners, 8VC
Nimay Mehta, 28
Partner, Lead Edge Capital
John Melas-Kyriazi, 27
Senior associate,
Spark Capital
Ryan Melohn, 28
Cofounder,
Expansion Venture Capital
Harley Miller, 27
Vice president, Insight
Venture Partners
Bucky Moore, 29
Principal, Costanoa Ventures
Joshua Nussbaum, 26
Principal, Compound
Andrew Reed, 26
Partner, Sequoia Capital
Caitlin Strandberg, 28
Vice president, FirstMark
Adam Struck, 29
Managing partner and
founder, Struck Capital
Phil Toronto, 29
Partner, Vayner/RSE
Anargha Vardhana, 28
Senior associate, Maveron
Joanne Yuan, 28
Associate partner,
Cowboy Ventures
Lu Zhang, 28
Founding partner, NewGen
Capital
Toby Zhang, 28
Partner, CRCM Ventures
JUDGES
Alfred Linpartner, Sequoia
Capital
Rebecca Lynnpartner,
Canvas Ventures
Megan Quinngeneral
partner, Spark Capital
Naval Ravikantcofounder,
AngelList
30 UNDER 30
Lu Zhang, 28
FOUNDING PA RTNER, NEWGEN CAPITAL
As a materials science and engineering grad student at

Stanford, Lu Zhang applied her work with nanothin biosensors to building a new medical device that tests for
Type 2 diabetespart of an on-campus entrepreneurship
class. She eventually sold her resulting company, Acetone,
to a private medical device company, which later sold it to
a public one for more than $10 million.
Looking to refresh, Zhang spent two years as
a venture partner at Fenox Venture Capital. As a
female VC from China, she was unusual in Silicon Valley and quickly became established
as an expert on U.S. tech that could do well
back home. In 2014 she decided to open
her own shop.
NewGen specializes in early-stage
tech investments and has raised a
$17 million rst fund and a $75 million
second one. The rm has made 38 investments so far, including ones in
Chat Sports (sports content and
news that are personalized using AI
algorithms), Grubmarket (an online
farmers market) and Stratifyd (datadriven sentiment-analysis tools). My
personality is I wish for the best, I prepare for the worst, Zhang says. I may
look like a petite Asian girl, but I dont want
anyone to tell me that I cant do it.
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Social
Entrepreneurs
Teju Ravilochan, 29
COFOUNDER, UNREASONABLE INSTITUTE
Its unreasonable: Fresh out of college and without ever founding

a company himself, Teju Ravilochan built an accelerator for social
entrepreneurs tackling the worlds unsolved problems from poverty to clean-water access. The company draws its name from a
George Bernard Shaw quote that claims All progress depends on
the unreasonable man. For the Unreasonable Institute that means
nding entrepreneurs who are willing to tackle complex problems at
scale, even if on paper theyre unqualied.
To make up for their inexperience, Ravilochan and his cofounders created a massive network of mentors, such as pioneering social
entrepreneur Paul Polak and Google X cofounder Tom Chi, and capital partners, including the Rockefeller Foundation. To date the institute has graduated 148 startups who have raised over $155 million.
We admitted that we did not know what it took to solve these problems, says Ravilochan. We were our own customers.
Aditya Agarwalla, 23
Cofounder, Kisan Network
Noam Angrist, 25
Cofounder, Young 1ove
Ricky Ashenfelter, 29
Cofounder, Spoiler Alert
Robert Bergquist, 24;
Brittany Bergquist, 26
Cofounders, Cell Phones for Soldiers
Sixto Cancel, 24
CEO, Think of Us
Corinne Clinch, 23; Uriel Eisen, 24
Cofounders, Rorus
Emily Cunningham 26;
Kwami Williams, 25
Cofounders, MoringaConnect
Tsechu Dolma, 24
Founder, Mountain Resiliency Project
Brit Gilmore, 29
President, The Giving Keys
Jason Green, 27; Matt LaRosa, 23
Cofounders, Edenworks
Sam Greenberg, 24;
Sarah Rosenkrantz, 24
Cofounders, Y2Y
Kristof Grina, 26; Kathleen OKeefe,
26; Jeff Prost-Greene, 26
Cofounders, Up Top Acres
Afzal Habib, 28;
Sabrina-Natasha Habib, 28
Cofounders, Kidogo
Tina Hovsepian, 29
Founder, Cardborigami
John Lewandowski, 26
Founder, Disease Diagnostic Group
Quardean Lewis-Allen, 29
Founder, Made in Brownsville
Evan Lutz, 24
Cofounder, Hungry Harvest
Sara Minkara, 27
Founder, Empowerment Through
Integration
Genevieve Nielsen, 24
Cofounder, mRelief
Daquan Oliver, 24
Founder, WeThrive
Liz Powers, 28
Cofounder, ArtLifting
Sam Pressler, 24
Founder, Armed Services Arts Partnership
Teju Ravilochan, 29
Cofounder, Unreasonable Institute
Liana Rosenman, 25; Kristina Saffran, 24
Cofounders, Project HEAL
Ryan Ross, 28
Program director, Halcyon Incubator
Michael Roytman, 28
Cofounder, Dharma Platform
Annie Ryu, 26
Founder, The Jackfruit Co.
Mario Jovan Shaw, 27; Jason Terrell, 26
Cofounders, Profound Gentlemen
Rachel Sumekh, 25
Founder, Swipe Out Hunger
Galen Welsch, 29
Cofounder, Jibu
JUDGES
Jean Casecofounder, Case Foundation
Cheryl Dorseypresident, Echoing Green
Randall Laneeditor, Forbes magazine
Kiah Williamscofounder, SIRUM
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Enterprise
Technology
Jobert Abma, 26; Michiel Prins, 26
Cofounders, HackerOne
Raphael Arar, 29
Designer and researcher, IBM
Leore Avidar, 28; Harry Zhang, 27
Cofounders, Lob.com
Payam Banazadeh, 25;
William Woods, 28
Cofounders, Capella Space
Shane Scranton, 26;
Nate Beatty, 25
Cofounders, IrisVR
Laura Behrens Wu, 25;
Simon Kreuz, 27
Cofounders, Shippo
Max Bennett, 26
Cofounder, Bluecore
Scott Britton, 28
Cofounder, Troops.ai
Mackenzie Burnett, 23;
Dan Gillespie, 23
Cofounders, Redspread
Nick Candito, 29
Cofounder, Progressly
Mathilde Collin, 27
Cofounder, Front
Brad Cordova, 27
Cofounder, TrueMotion
Ryan Disraeli, 29
Cofounder, TeleSign
Andrew First, 27
Cofounder, Leanplum
Wade Foster, 29; Mike Knoop, 27
Cofounders, Zapier
Larry Gadea, 29
Founder, Envoy
Mitchell Hashimoto, 27;
Armon Dadgar, 25
Cofounders, HashiCorp
Steven Hong, 28
Cofounder, Kumu Networks
Peter Johnston, 28
Founder, Lystable
Charlotte Kiang, 25
Mission integration engineer, SpaceX
Curtis Liu, 28; Spenser Skates, 28
Cofounders, Amplitude
Beyang Liu, 27; Quinn Slack, 28
Cofounders, Sourcegraph
Andrew Maas, 29
Cofounder, Roam Analytics
Chris Maddern, 28
Cofounder, Button
Jessica McKellar, 29
Director of engineering, Dropbox
Kylan Nieh, 24
Senior product manager, LinkedIn
Samantha Radocchia, 28
Cofounder, Chronicled
Hany Rashwan, 26
Founder, Payout.com
Cecilia Stallsmith, 27
Senior manager, platform and
partner marketing, Slack
Dmitriy Zaporozhets, 29
Cofounder, GitLab
30 UNDER 30
Mitchell Hashimoto, 27
CO FOUNDER, HASHICORP
When Mitchell Hashimoto worked for a consulting rm while an undergrad at the University of
Washington in 2010, he was frustrated by how much time he spent priming clients computers
with the right software setup. As a x, Hashimoto wrote code automating the process, cutting
down setup time from about 15 hours to 15 minutes. He made his software, called Vagrant, open
source, and within a few years millions of developers and IT professionals were die-hard users.
HashiCorp now offers seven open-source tools that automatically install and congure
software in computers, servers and databases. The 60-person startup has raised $34.7 million
in venture funding and has a roster of blue-chip customers including eBay, Disney, PayPal, Stripe, Pinterest, Home Depot and nearly every U.S. bank.
Every company is realizing the traditional way of doing IT
isnt going to scale, Hashimoto says. Tractor companies or insurance companies want to focus on their business, not on
building the delivery mechanism for their software.
JUDGES
Jeff Lawsoncofounder, Twilio
Douglas Leonemanaging partner,
Sequoia Capital
Maran Nelsoncofounder, Clara Labs
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CITY PANTS ($348) BY JOHN VARVATOS; LEATHER AND FELT SNEAKERS BY GIUSEPPE ZANOTTI DESIGN ($695).
Sean
Petterson,
26
COFOUNDER,
ST R ON GA R M
T ECHN OLOGI ES
Safety is a major problem

for blue-collar workers: More
than 3% of manufacturing workers suffered a workplace injury in
2015, according to the Bureau of
Labor Statistics. Brooklyn-based
StrongArm Technologies makes
wearable protective technology to help industrial workers
avoid injury. Its exoskeletons,
which retail for $275 to $630,
align the body to reduce arm
fatigue, avoid muscle strains and
sprains, and prevent back injuries. Sean
Petterson, whose father was a construction worker,
studied product design at the Rochester Institute of
Technology, where he came up with the idea for the
company. StrongArm has raised $4.5 million from investors, including 3M, which helps with distribution,
and customers include Con Edison and military shipbuilder Huntington Ingalls Industries. Revenue should
approach $8 million in 2017. Says Petterson: I really
wanted to create products that would bring people
like my family members home a little bit safer.
Manufacturing
& Industry
Rhae Adams, 26
Director of energy and mining markets,
Planetary Resources
Will Ahmed, 27; John Capodilupo, 25;
Aurelian Nicolae, 28
Cofounders, Whoop
Chad Amonn, 29
Cofounder, Inova Drone
Justin Barozie, 28
Associate manager of manufacturing
engineering, battery, Tesla Motors
Jeremy Blum, 26
Head of electrical engineering, Shaper Tools
Zack Bomsta, 28; Jordan Monroe, 27;
Kurt Workman, 27
Cofounders, Owlet Baby Care
Kasey Catt, 28; Noah Snyder, 28
Cofounders, Interphase Materials
Gaurab Chakrabarti, 28; Sean Hunt, 27
Cofounders, Solugen
Ben Cogan, 26; Jesse Horwitz, 28
Cofounders, Hubble Contacts
Tyler Collins, 28; Mike Radenbaugh, 27;
Marimar White-Espin, 27
Cofounders, Rad Power Bikes
Marine Couteau, 26; Ladislas de Toldi, 28
Cofounders, Leka
Chase Feiger, 28
Cofounder, Parsable
Anurag Garg, 29
Cofounder, Dattus
Caroline Guenther, 29
Integrated business planning manager,
Cisco Systems
Neha Gupta, 28
Business operations, Daqri
Cody James, 21
Robotics programmer, self-employed
Coby Kabili, 28; Braydon Moreno, 29
Cofounders, Robo 3D
Jake Kassan, 25; Kramer LaPlante, 25
Cofounders, MVMT
Lane Konkel, 26
Lean leader, General Electric
Curren Krasnoff, 24
Cofounder, Cortex Composites
Hasier Larrea, 28
Founder, Ori
Marco Mascorro, 29
Cofounder, Fellow Robots
Alex Mathews, 22; Param Shah, 21
Cofounders, Fusiform
Kayla McDonell, 26
Exterior lighting design release engineer,
General Motors
Cam Murphy, 29
Managing director, FEAM Aero
Sean Petterson, 26
Cofounder, StrongArm Technologies
Patrick Pittaluga, 25; Sean Warner, 25
Cofounders, Grubbly Farms
Jonathan Saperstein, 29
CEO, Tree Town USA
Drew Tolly, 26
Data scientist, Caterpillar
Justin Wenning, 24
Welding engineer, Fabrisonic
JUDGES
Jewel Burkscofounder, Partpic
Jenny LawtonCOO, Techstars
John Spirkcofounder, Nottingham Spirk
Candice Galek, 29
FOUNDER, BIKINI LUXE
In March 2016 former fashion model Candice Galek decided to promote Bikini
Luxe, her three-year-old online swimsuit retailer, on an unconventional platform: professional networking site LinkedIn. The series of sexy photos of models
wearing her esh-baring products stirred a backlash from users who blasted her
for treating the buttoned-up site like an Instagram feed.
It was very suit-and-tie, and here I was posting these beautiful women,
sprawled out on a beach in Tahiti, says Galek. Instead of backing down, she
upped the ante with an ultrasexy shot of a neon green and lavender Montce bikini
that exposed the mostly bare derriere of Miss Universe contestant Natalie Roser.
In her caption Galek wrote, Is this appropriate for LinkedIn? The post soon had
50,000 views and 500 comments.
The controversy boosted Bikini Luxes sales by 20%. In 2017 Galek is aiming
to hit $5 million in revenue and produce her own house brand. The University of
Miami grad says that her 18-hour workdays are worth the gratication she gets
from running her own business, which she far prefers to life in front of the camera: Ive never been that great at having someone else tell me what to do.
Art & Style
CREDIT TK
Danielle Bernstein, 24
Blogger, WeWoreWhat
James Charles, 17
Makeup artist
Petra Collins, 24
Artist
Morgan Curtis, 29
Lingerie designer, Morgan Lane
Pablo Delcan, 27
Graphic designer, Delcan &
Company
Peche Di, 27
Model/founder, Trans Models
Candice Galek, 29
Founder, Bikini Luxe
Chloe Gordon, 29;
Parris Gordon, 26
Fashion designers, Beaulle
Arun Gupta, 28;
Julian Connor, 27
Cofounders, Grailed
Skyler Grey, 16
Artist
Michael Xufu Huang, 22
Collector/museum founder,
M Woods
Misha Kahn, 27
Artist
Tahir Carl Karmali, 29
Artist
Julia Gudish Krieger, 28
Founder, VillageLuxe
Claudia Li, 28
Fashion designer, Claudia Li
Angela Luna, 22
Fashion designer, Adiff
Sarah Meyohas, 25
Artist
Jane Moseley, 29
Artist/model
Bethany Mota, 21
YouTube personality
Willa Nasatir, 26
Artist
Jake Rosenberg, 29
Cofounder, Coveteur
Rachel Rossin, 29
Artist
Tschabalala Self, 26
Artist
Amy Shepsman, 29
Jewelry designer, Flaca Jewelry
Marieclaire St. John, 29
Fashion designer, Dresshirt
Vanessa Stofenmacher, 29
Founder, Vrai & Oro
Katie Stout, 27
Furniture designer/artist
Paige Dellavalle Walker, 29
Jewelry designer, Stella Valle
John Wise, 29
Cofounder, Lovepop
Jamie Wolfond, 25
Industrial designer, Good Thing
JUDGES
Carter Clevelandfounder, Artsy
Michelle Phanfounder, ipsy
Christian Sirianofashion designer
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BROOCH BY GIUSEPPE ZANOTTI DESIGN ($1,150).
Consumer
Technology
30 UNDER 30
Noah Kraft, 29
COFOUNDER, DOPPLER LABS
Noah Kraft is a rookie in the world of hardware, but hes building one of the most ambitious audio products in years. In June 2016
Kraft and his San Francisco team unveiled
the Here One wireless earbuds, which, like
all headphones, let you listen to music and
take phone calls but also lter out specific noises from the outside world. Unlike normal noise-canceling headphones, which create a Cone of Silence effect, the Here One
has multiple directional microphones that let
you control which soundsa baby crying or
your boss voiceyou can still hear. Everyones talking about wearables. But most of
the focus is on the eyes and the wrist. And
we made a bet early on that the ears were
actually a more elegant place.
The company has raised $50 million, has
more than 65 employees and will start shipping Here One to consumers in early 2017.
Ben Anderson, 28
Cofounder, Amino Apps
Matthew Bailey, 27; Aaron Grant, 27;
Stephen Lake, 27
Cofounders, Thalmic Labs
Colin Beighley, 28; Fergus Noble, 29
Cofounders, Swift Navigation
Joseph Bernstein, 28;
Kayvon Beykpour, 28
Cofounders, Periscope
Christina Bognet, 29
Cofounder, PlateJoy
Michael Brandt, 28;
Geoffrey Woo, 28
Cofounders, Nootrobox
Skinner Cheng, 29;
Pieter Doevendans, 26;
Thibault Duchemin, 25
Cofounders, Ava
Ben Christensen, 24; Garrett Lord, 27;
Scott Ringwelski, 24
Cofounders, Handshake
Joshua Dziabiak, 29; Adam Lyons, 29
Cofounders, The Zebra
Steve El-Hage, 27
Cofounder, Massdrop
Mattieu Gamache-Asselin, 26;
Jamie Karraker, 27
Cofounders, Scriptdash
Sergey Gonchar, 24;
Eugene Nevgen, 24
Cofounders of MSQRD, Facebook
Yunha Kim, 27
Founder, Simple Habit
Kai Kloepfer, 19
Founder, Biore Technologies
Lexie Komisar, 29
Senior lead, IBM Digital
Innovation Lab
Noah Kraft, 29
Cofounder, Doppler Labs
Jeremie Lasnier, 27;
Andre Lorenceau, 27;
Saswat Panda, 28
Cofounders, LiveLike VR
Joseph Lau, 27;
Nikil Viswanathan, 29
Cofounders, Down to Lunch
Cory Levy, 25
Cofounder, One Inc.
Alexey Moiseenkov, 26
Cofounder, Prisma Labs
Keller Rinaudo, 29
Cofounder, Zipline
Jonathan Rodriguez, 27
Spectacles architect, Snapchat
JD Ross, 26
Cofounder, OpenDoor
David Rust, 27
Director of operations strategy, Lyft
Brian Tolkin, 26
Senior product manager,
Shared Rides, Uber
Evan Wallace, 27
Cofounder, Figma
Justin Wetherill, 29
Cofounder, uBreakiFix
Whitney Wolfe, 27
Founder, Bumble
Ajay Yadav, 29
Founder, Roomi
Alexandra Zatarain, 27
Cofounder, Eight
JUDGES
Steve Andersonfounder, Baseline
Ventures
John Collisoncofounder, Stripe
Aileen Leefounder, Cowboy Ventures
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($680); SEAMASTER DIVER 300M CO-AXIAL 41 WATCH BY OMEGA ($4,400).
Games
Lishan AZ, 26
Game designer, University of
Southern California
Eric Barone, 29
Game developer, ConcernedApe
Zaqueri Black, 24
Professional League of Legends
player, Counter Logic Gaming
Joe Brammer, 24
Senior producer, Bulkhead
Interactive
Kitty Calis, 26
Freelancer, Kitty Calis
Fabiano Caruana, 24
Chess grandmaster, Fabiano
Caruana
James Earl Cox III, 26
Cofounder, Seemingly Pointless
Juan DeBiedma, 23
Professional Super Smash Bros.
Melee player, Team Liquid
Andy Dinh, 24
Founder, Team SoloMid
Natalie Gravier, 25
Visual designer, USC Institute for
Creative Technologies
Lisy Kane, 29
Producer, League of Geeks
Gennadiy Korol, 29
Project manager, Moon Game
Studios
Jasmine Lawrence, 25
Program manager II, Microsoft
Auguste Massonnat, 28
CEO, Room on Fire
Daniel Mullins, 24
Indie game designer, Daniel Mullins
Games
Jenny Qian, 29
Director of business operations,
Twitch
Rachel Quirico, 28
eSports host, Cyber Solutions
Agency
Khaled Abdel Rahman, 25
Product manager, Google
Matt Salsamendi, 19
Cofounder, Beam
Alex Schwartz, 29
CEO, Owlchemy Labs
Yuting Su, 28
Founder, Thinker-Tinker
Tomber Su, 25
Managing director, High School
Starleague
Max Temkin, 29
Cofounder, Cards Against Humanity
Gabriel Toledo, 25
Professional Counter-Strike: Global
Offensive player, SK Gaming
Josh Watson, 29
eSports operation manager, Psyonix
Noah Whinston, 22
CEO, Immortals
Zach Wigal, 27
Founder, Gamers Outreach
Liam Wong, 29
Graphic design director, Ubisoft
Entertainment S.A.
Andrey Yanyuk, 24
Founder, Tempo Storm
Olga Zinoveva, 26
Producer, 343 Industries
JUDGES
Brandon Beckcofounder, Riot
Games
Jade Raymondfounder, Motive
Studios
Bonnie Rosscorporate vice
president, Microsoft
Andy Dinh, 24
FOUNDER, TEAM SOLOMID
In the world of competitive

videogaming, Andy Dinh may
be the next Michael Jordan or
Nolan Ryana professional player turned team owner and sports
icon. His Team SoloMid is North
Americas top squad in the Tencent-owned game League of
Legends, a hugely popular
eSport that attracts 100 million
players monthly, selling out
arenas like Madison Square
Garden for live competitions.
As I just competed more
and more, eSports was taken a
lot more seriously, Dinh says.
[Now] youre seeing billionaires buy teams in eSports.
After failing to persuade
existing eSports organizations to
pick up his team, Dinh formed TSM
in 2009. He ran the organization while
still serving as captain of the ve-man team
before stepping down in 2013 to focus solely on management. TSMs YouTube channel
has more than a half-million subscribers, and
its star player, Sren Bjergsen Bjerg, boasts
1.2 million followers on Twitch. Dinh has been
aggressive about monetizing the business,
bringing in sponsors like Geico, HTC,
Red Bull and Axe.
CREDIT TK
David Freed, 28
PR OJECT MA N AGER ,
N ET POW ER DEMON ST RAT I ON PLA N T
30 UNDER 30
David Freed oversees a $140 million program to build

a rst-of-its-kind power plant near Houston that will
burn natural gas. The 50-megawatt plant is designed
to emit no carbon dioxide or other pollutants. The trick
is in the plants revolutionary design, using something
called the Allam Cycle, which captures carbon dioxide so that it can be injected and sequestered in old oilelds rather than released into the atmosphere. Exelon
and Toshiba back the project. I believe climate change
is the challenge of our generation, says Freed. Theres
a lot of really great things [being done] in renewables
and solar and wind, but in order to limit the worst impacts of climate change, carbon capture has to be part
of the solution.
My best day will be when this technology actually works and we know that we can make an impact on
the energy world.
Health Care
Ankur Aggarwal, 27; Hareesh
Ganesan, 25; Rahul Jain, 26;
Nick Valilis, 27
Cofounders, TowerView Health
Elizabeth Asai, 25; Elliot Swart, 25
Cofounders, 3Derm
Adam Behrens, 28
Postdoctoral fellow, MIT
Archit Bhise, 25; Vinayak Ramesh, 26
Cofounders, Wellframe
Carrie Cowardin, 28
Postdoctoral fellow, Washington
University
Matthew De Silva, 29
Founder, Notable Labs
Prarthna Desai, 27
Operations, Zipline
Riley Ennis, 23; Gabriel Otte, 28
Cofounders, Freenome
Jiang He, 28
Postdoctoral fellow, MIT
David Hysong, 29
Founder, Shepherd Therapeutics
Emilia Javorsky, 28
Cofounder, Arctic Fox
Lydia Kisley, 28
Postdoctoral fellow, University of
Illinois, Urbana-Champaign
Vivek Kopparthi, 27
Cofounder, NeoLight
Michael Martin, 29
Cofounder, RapidSOS
Nicole Moskowitz, 26;
Jessica Traver, 25
Cofounders, IntuiTap Medical
Alaa Murabit, 27
High-level commissioner, UN
Sudhakar Nuti, 25
M.D. candidate, Yale University
Kevin ORourke, 29
M.D./Ph.D. student, Weill Cornell
Medical College
Shaun Patel, 28
Orthopedic surgery chief resident,
Harvard Medical School
Ashwin Pushpala, 28
Founder, Sano
Srilakshmi Raj, 29
Postdoctoral fellow, Cornell University
Matthew Sacchet, 29
Postdoctoral fellow, Stanford University
Emily Schlichting, 27
Chief of staff, Office of the Assistant
Secretary for Legislation, Department
of Health and Human Services
Tyler Shultz, 26
Visiting researcher, Stanford University
Niko Skievaski, 29
Cofounder, Redox
Rohan Suri, 17
Founder, Averia Health Solutions
Gloria Tavera, 29
President of the board, Universities
Allied for Essential Medicines
Austin Walker, 28
Cofounder, Innovein
Tim Wang, 28
Cofounder, KSQ Therapeutics
Arsani William, 27
Investment professional, Farallon
Capital Management
JUDGES
Ann Lamontmanaging partner, Oak
Investment Partners
Nat Turnercofounder, Flatiron Health
Anne Wojcickicofounder, 23andMe
Michael Martin, 29
CO FOUNDER, RAPIDSOS
Last year more than 10,000 people died when they could
not relay fast and accurate information after calling 911.
People in danger dont always have the presence of mind
to press the right numbers and explain where they are. But
what if your smartphone could do that for you? Thats the
idea behind RapidSOS smartphone app, Haven. With a single touch, it sends the 911 dispatcher your exact location.
Despite all the ways that technology has transformed our

lives, [911] calls are still going through a 1960s infrastructure, says the companys cofounder/CEO, Michael Martin.
RapidSOS has raised $14 million and can now handle
911 calls nationwide. The service is being used just 25,000
times a month, about 0.1% of all 911 calls, so there is plenty of room to grow. This technology will be preinstalled
across your life, whether its on your wearable, already in
your car, on your smartphone. So that whenever you need
it, it is there for you.
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Energy
Law & Policy
Michael Alfaro, 28
Head of exploration and
production investing, Zimmer
Partners
Elizabeth Barno, 26
Community manager,
Greentown Labs
Kevin Barry, 23;
Thaddeus Tarkington, 24
Cofounders, FilterEasy
Charles Cai, 29
Cofounder, MG Fuels
Keiana Cave, 18
Founder, Mare
Anthony Diamond, 29;
Amrit Robbins, 27
Cofounders, Axiom Exergy
James Ellsmoor, 24
Director, Solar Head of State
Giles Eperon, 29
Research fellow, University of
Washington
David Freed, 28;
Mike McGroddy, 29
Project manager/principal,
Net Power Demonstration Plant
Nishant Garg, 29;
Jimit Shah, 28
Cofounders, Flow Labs
Thomas Healy, 24
CEO, Hyliion
Christopher Hopper, 29
Cofounder, Aurora Solar
Samir Ibrahim, 28
CEO, SunCulture
Christina Karapataki, 29
Principal, Schlumberger
Paige Kassalen, 23
Engineer, Solar Impulse
Ravi Kurani, 29
Cofounder, Sutro
Ann Makosinski, 19
Founder, Makotronics
Enterprises
Maanasa Mendu, 14
Student, Mason High School
Gabriel Mesa, 15
Founder, Mesa Foundry
Sam Slaughter, 29
Cofounder, PowerGen
Renewable Energy
Arthur Souritzidis, 28
CEO, Momentum Solar
Travis Thompson, 29
Research fellow, University of
Michigan
Colin Touhey, 29
CEO, Pvilion
Charlie Upshaw, 28
Cofounder, IdeaSmiths
Augusta Uwamanzu, 18
Student, Harvard University
Richard Walsh, 29
Program lead of clean energy
solutions, WGL Energy
Richard Wang, 27
CEO, Cuberg
Raymond Weitekamp, 28
CEO, polySpectra
Kendrick Worrell, 28
Cofounder, Accelerate Resources
Sam (Yinglin) Xu, 29
Head of oil and gas investment
banking, CohnReznick Capital
Markets Securities
Kate Aitken, 29
Chief of staff for federal policy and federal
affairs, Airbnb
Jessica Anderson, 29
Grassroots director, Heritage Action for
America
Adina Appelbaum, 29
Equal Justice Works Fellow, Capital Area
Immigrants Rights Coalition
Andrew M.J. Arruda, 27; Pargles Dall`Oglio,
27; Jimoh Ovbiagele, 23
Cofounders, ROSS Intelligence
Ryan Burke, 29
Special assistant to the president for economic
policy, the White House
Jamira Burley, 28
National deputy millennial vote director,
Hillary for America
Elizabeth Clark-Polner, 29
Associate research scholar in law, Yale
University
Matthew Denhart, 29
Executive director, Calvin Coolidge
Presidential Foundation
Johnetta Elzie, 27; Samuel Sinyangwe, 26
Cofounders, Campaign Zero
Aaron Ginn, 28
Cofounder, the Lincoln Network
Greg Glod, 29
Manager of state initiatives and senior policy
analyst, Texas Public Policy Foundation
Alex Harris, 28
Law clerk to Justice Anthony Kennedy, the
Supreme Court of the United States
Chelsea Harrison, 29
Senior policy communications manager, Lyft
Jon Hartley, 27
Cofounder, Real Time Macroeconomics
Hope Hicks, 28
Press secretary, Donald J. Trump for President
Joshua House, 28
Attorney, Institute for Justice
JUDGES
Matt Owenscofounder,
Extraction Oil & Gas
T. Boone Pickensfounder, BP
Capital
Allison Lami Sawyercofounder,
Rebellion Photonics
Hope Hicks, 28
P R E SS S EC R E TA RY,
DONALD J. TRUMP FOR PRESIDENT
Hope Hicks rocketed to prominence last year as a one-woman press team for a candidate known for eschewing talking
points and press conferences in favor of hurling curveballs via
Twitter. She has reputation for being tight-lipped, but when
your boss is Donald Trump, thats hardly a problem.
Whether its Twitter or an arena or a TV show, Hicks
Elizabeth Kelly, 29
Director of policy, United Income
Sarah McBride, 26
National press secretary, Human Rights
Campaign
Svante Myrick, 29
Mayor, City of Ithaca
Amanda Nguyen, 25
Founder, Rise
Steven Olikara, 26
Founder, Millennial Action Project
Sonya Passi, 28
Founder, FreeFrom
Jonathan Perichon, 26; Daniel Yanisse, 28
Cofounders, Checkr
Andrew Rausa, 29
Advertising and privacy counsel, Facebook
Jordan Roberts, 29
Associate, Fenwick & West
Varun Sivaram, 27
Acting director for energy security and climate
change, Council on Foreign Relations
Xiyin Tang, 29
Attorney, Mayer Brown
Kendall Hope Tucker, 24
Founder, Polis
Ryan Walsh, 29
Chief deputy solicitor general, Wisconsin
Department of Justice
Matt Watters, 28
Team lead, McKinsey & Company
JUDGES
Arthur C. Brookspresident, American
Enterprise Institute
William Eskridge Jr.John A. Garver Professor
of Jurisprudence, Yale Law School
Nate Levinecofounder, OpenGov
Anne-Marie Slaughterpresident, New
America
says, hes magnetic. People are drawn to him.

She launched her PR career at New York Citys Hiltzik
Strategies, whose clients included the Trump Organization,
and then quit to work directly for the familys business. In
Washington shes continuing to fend off the fourth estate for
her dream client, and she hopes to parlay that into even
a small role in the Trump Administration. The 24/7 life of
a Beltway operative is a new experience for this Connecticut native, who used to go to bed at 9:30 p.m. I dont sleep
much, but when I do, I sleep well.
Sports
30 UNDER 30
Von Miller, 27
LINEBACKER, DENVER BRONCOS
Since being selected second overall in the 2011

NFL Draft, Von Miller has snagged Defensive
Rookie of the Year, Pro Bowl and Super Bowl 50
MVP honors. The All-Pro linebacker leveraged his
on-eld performances into a six-year, $114.5 million
contract with the Broncos, making him the highest-paid defensive player in the history of the NFL.
That contract isnt the only thing beeng up
his bank account. While its normally superstar
QBs who are Madison Avenue favorites, Miller has
endorsement deals with EA Sports, Old Spice,
Adidas and Microsoft. He is also an investor, with
a stake in Twitter-backed headphone company Muzik and a chunk of Chefs Cut Real Jerky.
The former Texas A&M poultry-science major
also runs his own chicken farm in his hometown,
Desoto, Texas. The person I am on the football
eld, thats the person that youll get when Im
with my family. I try not to live double lives.
Alessandro Babini, 25
Cofounder, Humon
Andrew Barge, 29
Content development manager,
Twitter
Odell Beckham Jr., 24
Wide receiver, New York Giants
Martellus Bennett, 29
Tight end, New England Patriots
Mookie Betts, 24
Right elder, Boston Red Sox
Simone Biles, 19
Gymnast, Team USA
Elena Delle Donne, 27
Shooting guard, Chicago Sky
Draymond Green, 26
Forward, Golden State Warriors
Javier Hernandez, 28
Forward, Bayer Leverkusen
Kyrie Irving, 24
Point guard, Cleveland Cavaliers
Patrick Kane, 28
Right wing, Chicago Blackhawks
Akshay Khanna, 29
Vice president of strategy,
Philadelphia 76ers
Chloe Kim, 16
Snowboarder
Julia Landauer, 25
Stock car driver, Nascar
Sydney Leroux, 26
Forward, FC Kansas City
Tatyana McFadden, 27
Wheelchair marathon athlete,
Team USA
Collin Meador, 29
Investment associate,
San Francisco 49ers
Von Miller, 27,
Linebacker, Denver Broncos
Katie Nolan, 29
TV host, Fox Sports
Grant Norris-Jones, 27
Director of integrated
partnerships, FanDuel
Nneka Ogwumike, 26
Forward, Los Angeles Sparks
Kate Pratt, 28
Director of marketing
partnerships and team sales,
Madison Square Garden Co.
Carey Price, 29
Goalie, Montreal Canadiens
Milos Raonic, 26
Tennis player
Chris Sale, 27
Pitcher, Boston Red Sox
Evan Shugerman, 27
Sports partnerships manager,
Facebook
Shakur Stevenson, 19
Boxer, Team USA
Jake Stone, 26
Director of business development,
Omnigon
Nigel Sylvester, 29
BMX rider
Justin Zayat, 24
Vice president, Zayat Stables
JUDGES
James Hardenshooting guard,
Houston Rockets
Phil Knightchairman emeritus,
Nike
Casey Wassermanchairman,
Wasserman Media Group
Last year, Ben was too sick to dream.

He has Primary Immunodeciency or PI.
Thanks to the Jeffrey Modell Foundation,
he has been properly diagnosed and treated.
Now he can search for the cure.
helping children reach for their dreams
info4pi.org
30 UNDER 30
The
Black Sheep
At 25, James Proud has a quarter-billion riding on

reinventing how you sleep. And this original Thiel
Fellow is determined to do it his wayor fail trying.
CREDIT PINES
ETHAN
TK
FOR FORBES
BY BRIAN SOLOMON
30 UNDER 30 James Proud
This absolutism feels all the more jarring

given that his short, bulldog frame and pudgy
baby face make him look like the high school
computer-lab nerd he once was, a persona buttressed by his wardrobe (a sweatshirt and sweatpants almost all the time, a black T-shirt if hes
feeling dressy) and diet (no vegetables, no sh).
The latest in the 21st-century cavalcade of cocky
prodigies in the mold of Sean Parker, Mark Zuckerberg and Evan Spiegel, Proud was born thumbing his nose at other people. No one can make
me do what I dont want to do, he says. Hes been
professionally bred this way, too.
James Proud was in the rst class of Thiel Fellows, the upstarts122 and countingwho for
the past seven years have taken $100,000 each
from billionaire contrarian Peter Thiel on the
condition they skip college. And hes also the
most successful. Over the past four years hes
raised roughly $40 million for his startup, Hello,
mostly at a $250 million valuation. Hes recently
been raising bridge nancing, at an even higher
valuation, including a direct $2 million ante from
the godfather himself, Thiel. Its his rst personal investment in one of his fellows. James stood
out from the start as extremely tenacious and determined, Thiel says.
And now hes rich, too. Proud still owns about
half of Hello, pushing him well into centimillionaire territory.
Prouds chosen market is right up there with
death and taxes in terms of universality: sleep,
which has suddenly become a bit more sexy and
a bit less sleepy than it has been for the past few
millennia. Youre starting to see a shift in conversation around sleep that happened in the 80s
around exercise and in the 90s and 2000s with
organic and healthy eating, Proud says. Arianna
Huffington has raised $7 million for Thrive Global, which offers a suite of products and services
driven by the idea that more sleep translates to a
better life, and Casper, the mattress-will-changeyour-life startup, has raised $70 million.
Prouds focus is on hardware, specically an
orb the size of a tennis ball that sits on your bedside table and uses a variety of hidden sensors to
ETHAN PINES FOR FORBES
ts only six blocks from

James Prouds office, a brickwalled converted bakery
in San Franciscos Mission
District, to Central Kitchen, a
hip restaurant owned by fellow FORBES 30 Under 30
alum Thomas McNaughton,
but thats plenty of time for
the 25-year-old to take on
more or less all of Silicon
Valley. People who complain
about nding good talent just dont know how
to recruit. Traditional venture capital rms? Unnecessary. By the time we reach the host stand,
hes deriding the entire tech community for their
airy-fairy bullsh-t about changing the world.
track your movements and the surrounding nighttime

atmosphere. The $149 gadget, called Sense, grades your
sleep on a scale from 0 to 100and tries to help you improve that score over time. Proud claims that the Sense
holiday rollout at Target is the biggest the retailer has
ever done for a new electronics product (Target says
thats incorrect).
Big orders wont guarantee big success, at least not
immediately. A source close to the company says the internal sales projection for 2017 is 250,000 Sense units,
implying net revenues in the ballpark of $20 million.
Tiny compared even to a agging competitor like Fitbit, which likely nished 2016 with sales of more than
$2.3 billionand even at that size, its barely protable.
Meanwhile, a triad of monolithsAmazon, Apple and

Googlestand determined to put connected devices
on every conceivable surface of your body and in every
space in your home.
What does Proud think of his trillion-dollar competitors? Looking up from his lamb ribs and roast pork, he
lifts both hands in a double-middle-nger salute.
Its the kind of brashness that a Peter Thiel could
love. That tack surely worked for Zuckerberg and Spiegel. But youthful hubris goes back to Icarus, and that tale
didnt end with an IPO. Given his complicated market,
dotted with pitfalls and entrenched enemies, Proud will
ultimately demonstrate whether unswerving self-condence is a necessary entrepreneurial attribute or a potentially fatal aw. At the FORBES
Under 30 Summit in Boston last October, Proud was asked backstage
whether hed ever met Richard Branson, whom he would soon join on a
panel. The real question, Proud responded, is whether Branson has
ever met me.
less than an hour
away from Bransons childhood
home south of London. His father
worked for the British civil service,
and his mother was a secretary who
later stocked grocery-store shelves
at night. Proud preferred haunting
the computer lab to making friends
on the playground. His rst Internet
payday came at the age of 12, when
he built a website for a scammer he
had met through an online forum
(he spent the money on a Sony Ericsson mobile phone and Creative Labs
MP3 player). As a hired hand for Web
projects, he began making hundreds
of dollars per job. At one point his
PayPal account was frozen because
he was underage, so cash arrived in
the mail, prompting questions from
his parents.
At 17 Proud started GigLocator,
a website that aggregated concertticket information, and persuaded his parents to let him take a gap
year to work on it. He fed himself by
faking hole punches on loyalty cards
from a British chicken chain, Nandos, or else schmoozing venture capitalists and other European techies
PROUD GREW UP

over lunch, always letting them pick up the check. Already back then, James had this laser-sharp focus about
what he was going to do for the next ten years, says Spotify founder Daniel Ek, who met Proud playing PingPong during that period. It was incredibly rare to see
that from someone who should have been more focused
on girls and school.
Proud would have been the rst in his family to attend college, but when the day came to enroll, he refused to go, despite his parents pleas. Then, on a September day in 2010, Proud found his savior at 1 a.m. while
watching a live stream of the TechCrunch Disrupt conference. There Thiel announced his eponymous fellowship: a $100,000 grant to each of 20 teenagers who wanted to skip college to pursue another dream. Proud decided to apply on the spot.
When Thiel ew the nalists out to hobnob in San
Francisco, Proud was surrounded by preppy American
kids with acceptances to Harvard they wanted to turn
down. He returned to London, sure he wouldnt make
the cut. I wished I didnt even come, Proud says. I
What does Proud think

of his trillion-dollar
competitors? Looking
up from his lamb ribs
and roast pork, he lifts
both hands in a doublemiddle-finger salute.
was going to have to go back and hate my life because Id
seen that this would be so much better. But in April 2011
Thiels organization called to give him the good news.
They also told him to sit tight until July. Proud, of course,
was in a hurryand not listening to anyone who would
stop him. He quickly emptied his savings to buy a plane
ticket and then demanded the rst Thiel check be sent
early, lest he end up sleeping on the street. They caved.
The fellowship changed Prouds life, turning him
from an unknown programmer living with his parents to
a member of an inaugural class of wunderkinds. While
crashing on air mattresses and couches for most of the
next year, he took advantage of every door the Thiel brand
opened across Silicon Valley. For a time Proud worked
out of PayPal cofounder Max Levchins incubator, and in
June 2012 he offloaded GigLocator to the concert promoter Peter Shapiro, earning himself a cool six-gure payday.
(Thats one young, smart motherfker, says Shapiro.)

Soon after, Proud began raising money for a new
stealth startup that would become Hello. I said, Im in
for whatever amount youll let me in for, says Shakil
Khan, an early Spotify investor that Proud befriended in
London. He said, I still havent nalized what its going
to be. And I said, Thats irrelevant.
The original idea for Hello was to build a better version of the activity-tracker wristband pioneered by Fitbit
and Jawbone. Proud recruited a handful of young hardware engineers and spent 18 months developing a prototype, which included a magnetic strap similar to one that
would later appear on the Apple Watch. But over time
Proud quietly soured on its potential. He noticed that
no one on his team wore any existing product on his or
her wrist for more than a few weeks. Consumer surveys
show similar results, with estimates that about a third
of wearables owners give up on their devices within the
rst six months. Plus, competition was erce. Google
would announce Android Wear in March 2014, and the
Apple Watch debuted in September. Proud was already
late to a category in which he no longer believed.
So what do you do? Do you give the money back to
investors and send everyone home? he asked.
The epiphany came when Proud ew out to New
York City to attend a birthday party in March 2014.
Distracted by his dilemma, he brainstormed about
products that wouldnt need to be worn at all times
and suddenly arrived at sleep tracking. People enjoyed the feature on wristbands but hated wearing them overnight. He brought the team together when he returned and told them they would be
scrapping a year and a half of work to start over.
I wore the wristband prototypes for a good two
weeks after, holding on to the work we had done,
says Hellos rst industrial designer, Rob Shook.
Proud also had to sell his decision to an angry group of
investors who had supported a $7 million Series A only
months earlier. To placate them, he granted additional shares to everyone who participated in the round, including Khan, then-PayPal president David Marcus and
Xiaomi vice president Hugo Barra. Had the decision to
pivot come three months later, I dont think the company would have survived, says Dan Rose, Facebooks vice
president of partnerships and Hellos only board member other than Proud.
PROUDS MOVE AWAY FROM wearable devices took Hello
out of a crowded but expanding marketan estimated 67
million smart watches will be sold this yearand made
it the pioneer of a completely new one. If it can work,
it can end up being a consumer device on par with the
iPod, Thiel says. A huge if. Searching for scientic back-
Scorecard: How Have the Thiel Fellows Fared?

In 2011 Peter Thiel embarked on an audacious plan: Hed give a group of teenagers $100,000 each to forgo
collegeand build their own startups from scratch. It quickly generated immense buzz as applications poured in.
In the end, 24 young entrepreneurs became the rst Thiel Fellows. Over the next ve years that freshman class
followed a number of different paths. Some stuck with their initial idea, while others changed course completely.
And only a handful completed a key Silicon Valley rite of passage: raising money for their startup. Matt Drange
Raised Money
Only four fellows, or about
16% of the original Thiel
class, have raised more than
$1 million since taking Thiel up on his offer.
Paul Gu, cofounder of Upstart, leads the
pack, having raised $53 million for the online-lending marketplace. Andrew Hsu,
meanwhile, was the rst to
get funding, scoring $1.5 million for his Airy Labs, a maker
of educational games for kids.
Stuck With Their

First Plan
Roughly half have kept
going on their original projects. Dale Stephens, for example, has stayed at the
startup he founded, UnCollege, which puts together gap-year
programs, while Laura
Deming remains at her
biotech-focused venture
capital rm, the Longevity
Fund.
Theres no rule
that Thiel Fellows cant
eventually attend college.
At least ve fellows have done
so, including David Luan, who
graduated from Yale and has
a new machine learning company, Dextro.
Changed
Directions
Intertwining Ties to Thiel

At least three fellows besides James Proud have continued to stay connected
in some way to Thiel: Eden Full Goh, who started a solar company before leaving for Palantir, the data-mining rm Thiel cofounded; Tom Currier, who joined
Thiels Founders Fund as an entrepreneur-in-residence after starting Black Swan
Solar; and Daniel Friedman, who received funding from FF Angel, one of Thiels VC rms, for
Thinkful, his startup that offers online coding classes.
ILLUSTRATIONS BY PATRICK WELSH FOR FORBES
ing, Proud hired Matthew Walker, director of the Sleep

& Neuroimaging Laboratory at the University of California, Berkeley, as Hellos chief scientist. Walker believes
that lack of sleep is an epidemic in First World countries and that Sense can help x that. After one year of
use, 71% of Sense users slept longer on average than they
had before, and 57% had more regular wake-up times,
the company claims. Hello hopes to do even better as it
tests more personalized sleep techniques.
Proud proved there was a market for sleep-centered
products, at least among early adopters, with a successful Kickstarter campaign in July 2014. After racing to
build a basic hardware prototype and marketable software faade, Hello launched its campaign with a slick
video and a goal of $100,000. It blew past the nish line,
scoring $1 million in the rst four days and $2.4 million
after one month, just a hair shy of VR phenomenon Ocu-
Went to School
A dozen or so fellows have

moved on from their initial
concepts. For his part, Sujay
Tyle worked on founding
Hired, a job-search website,
then left to join one of Hireds
investors, Sherpa Ventures.
lus Rifts crowdfunding haul. That summer proved an intoxicating high, but there was so much to do to make the
marketing pitch a reality that four bottles of celebratory
champagne sat in the office refrigerator unopened until
this past Thanksgiving.
Hello promised delivery by November 2014 but delayed the rst shipments until February as production
challenges mounted. Sense is a two-part system that includes a bedside devicean amalgam of LEDs, circuits
and sensors to detect light, sound, temperature and air
quality, all stuffed into a small sphereand an accompanying battery-powered, Bluetooth-enabled Sleep Pill,
which clips to your pillow to track movement. The team
had to design many of the manufacturing tools themselves. That following June Hello brought in a $30 million cash infusion at the $250 million valuation from the
likes of Temasek Holdings, a government-owned investJANUARY 24, 2017 FORBES | 91

cant build and release them all right now, Proud asserts.
ment fund in Singapore, but the rest of the year was lost
Hell need to diversify his product line soon to avoid
to xing bugs and rewriting core features. In 2016, as
the fate of other hardware startups like fellow KickstartAmazon rolled out the Echo and Google revealed Google
er darling Pebble, which shut down in December, and
Home, both voice-enabled wireless speakers, Proud
drone maker 3D Robotics, which crashed after burning
pushed the team to add voice controls to the latest Sense,
through $100 million in funding. Even public companies
which went on sale this past November.
like Fitbit (trading down 86% from its peak) and GoPro
The big challenge is always: Can you lock in the mar(down 90%) have struggled. On one hand, its easier
ket enough before people develop copycats that are cheapthan ever to build a hardware product, says Jan Dawer and roughly equivalent? Thiel says. This is always
son, analyst at Jackdaw Research. But in some ways its
something a little harder for hardware than software.
harder than ever to be competitive and build a sustainUnfortunately, even the new version feels like an unable business.
nished product searching for a market. After trying it
In the meantime, Proud must mature as the leader of a
for a week, I enjoyed Senses novelty as a smarter alarm
50-employee startup trying to go toe-to-toe with compaclock with limited voice commands and the ability to
nies that outnumber and out-nance him. While friends
turn off the alarm with a wave of your hand. But for my
extol Proud as wise beyond his
$149, the core functionality is too
years, former Hello staffers deinconsistent. Its supposed to describe him as a smart but invettect when you fall asleep and wake
erate risk-taker who often unravup, and analyze your tossing and
els in tense situations. You could
turning to see how many hours
see the pressure got to him, and
youre in deep sleep. Yet the Sense
sometimes I would think its beinterprets data gathered from the
cause hes young, a former Hello
clip on my pillow rather than a
engineer says. He would suddenband on my wrist, so it frequently
ly rush in saying, We need to do X
fails to register when I get up from
because people are complaining
bed and often confuses my anabout it. Instead of patiently adces movement for my own. Even
hering to a long-term plan, Proud
if it were accurate, neither the
is prone to rash decisions. The
sleep results nor other measureability to take risks and be aggresments are groundbreaking. Everysive is the foundation of James deone already knows that blackout
The sleep doctor is in: For $149, the Sense is designed
cision making, and it may eventucurtains are good for beauty rest to track your sleepand analyze how to make it better.
ally come back to bite him, says
and a barking dog is bad.
one ex-Hello employee who worked closely with Proud
Other warning signs abound. Proud boasts about the
for more than two years. If that day never comes, hes a
new Hello displays in nearly 700 Target stores across
genius. If it does, the warning signs were there.
the country, but the only inventory in Oakland was one
Proud doesnt deny he can be a capricious boss. In DeSense tucked in a side cabinet next to some Apple TVs
cember 2014, on the morning an engineer was set to y
and Linksys wireless routers. A survey of Best Buys
to China to install the nal rmware for the Senses rst
around New York found only one with the product in
manufacturing run, Proud decided to add one more feastock; other stores indicated you needed to order it. And
ture. His CTO, Tim Bart, told him it was insane to change
when I brought a Sense home, I nearly abandoned the
anything in the code at such a late hour, but Proud was
set-up process after an hour of trying and failing to plug
suddenly convinced that Sense should light up and play
in the charging cable. Hello says a new manufacturer
a sound when it was plugged in for the rst timelike a
had constructed the USB port a millimeter off target in
computer booting up.
a few units.
After a bruising argument, Proud got his way. The enWHILE PLENTY OF QUESTIONS REMAIN about Sense,
gineer nished coding the change on the cross-PacifProud now treats his risky pivot as a thesis statement.
ic ight, and through skill and luck avoided introducing
He trashes devices that need to be worn (like the Apple
new bugs into the nal product.
Watch) or require direct interaction (like the home assisWas that last minute intervention a Steve Jobs-like motants from Amazon and Google). His goal is to cover the
ment of product genius or the power trip of an enabled,
entire 24 hours of your day with a few nonengagement
immature founder? Prouds analysis of his behavior in
health-tracking devices like Sense. Its a tragedy that we
hindsight is simple and unapologetic: Well, I was right. F
WORLDS MOST INFLUENTIAL HEALTHCARE EVENT

SOLVING HEALTHCARES BIGGEST CHALLENGES
TO OUR PARTICIPANTS, SPEAKERS & SPONSORS:

THANK YOU!
The Fifth Forbes Healthcare Summit was a rousing success! Together, we created an environment
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PRESENTED BY
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Forget the 30 Under 30. If there were
an 8 Over 80, it would include Phillip
Frostdoctor, investor, inventorwho
globalized the generic-medicine
business and continues to make
and give away billions with
Buffett-level efficiency.
BY MATT SCHIFRIN
94 | FORBES
JANUARY 24, 2017
SONYA REVELL FOR FORBES
or most Floridians, palm trees assume the same status that

pigeons do in New York City. They are everywhere, but you barely notice them.
Not for Dr. Phillip Frost. As we drive to his office in his white 7 series BMW, Miamis second-richest man and a 50-year
resident cant help but lecture me on more than a dozen varieties of palms sprouting like weeds from the lapses in pavement.
See the fruit on that one hanging? Its yellow. Thats a lady palm. Beautiful, isnt it? And thats a date palm in front. This is a
Chinese fan palmforms a fan like the elephant earand that is a sabal palm, owering. Isnt that pretty? Then Frost decides
to test my retention. And those crooked ones are what? After a few seconds he answers his own question. Coconut palms.
Remember I told you coconut palms grow crooked? Royals tend to grow upthese are royals.
In this sweltering city of conspicuous consumption, where nearly everyone drives with windows rolled up and the air-conditioning and radio blasting, Frost, with his botanical obsession and insatiable appetite for learning, is an anomaly. He is a businessman and an investor, but he is also a scholar, inventor and fervent patron of the arts and sciences. And anyone spending
time with the self-effacing octogenarian will readily testify that it is precisely his meticulous attention to seemingly mundane
detailslike those many varieties of palm treesthat underlies his uncanny ability to spot and capitalize on opportunities.
Frost is a board-certied dermatologist and irrepressible entrepreneur who is also the chairman and CEO of Opko Health,
a midsize pharmaceutical and medical-diagnostics company with promising remedies in numerous areas, including chronic
kidney disease and prostate-cancer detection. Though his company has revenues of $1.2 billion and will lose about $50 million
in 2016, he insists Opko will mean more to medicine than any of his previous endeavors, including drug-industry pioneers like
Key Pharmaceuticals, Ivax and Teva Pharmaceuticals. Its a bold statement from a man who played a major role in creating the
Dr. Phillip Frost: a

Renaissance man
and billionaire with a
passion for palm trees
and prots.
FROST
THE FROST FOLIO

Through Opko Health, Frost is building a health-care-focused Berkshire Hathaway, but
like other great investors he nds values in a myriad of industries.
OPKO HEALTH Frost owns 34% of therapeutics and diagnostics company with $1.2 billion in sales.
TEVA PHARMACEUTICALS INDUSTRIES A $20 billion
(revenue) Israel-based big pharma, specializing in generics. Frost owns 1.5% of the stock.
VECTOR GROUP Founded by fellow Philadelphian
Bennett LeBow; owns tobacco company Liggett Group
and commercial realtor Douglas Elliman Realty. Frost is
largest shareholder, with 15%.
CASTLE BRANDS
Goslings rum.
LADENBURG THALMANN Regional investment bank and

nancial advisory; 4,000 advisors and $132 billion in assets. Frost owns 36.5% and Vector Group owns 8.23%.
CASTLE BRANDS Maker of premium liquor, including

Jeffersons whiskey and Goslings rum. Frost owns 33.5% and Vector 8%.
COCONUT GROVE BANKSHARES Miami-Dades oldest bank; Frost owns 24%.
COGINT Formerly Tiger Media; a cloud-based data
and analytics company focused on marketing and
risk management. Frost owns 29%.
BIOCARDIA Formed by Frosts Sorbonne roommate, Dr. Simon Stertzer. A clinical-stage company
using stem cells to repair cardiac muscle after a
heart attack. Frost owns 32.7%.
DRONE AVIATION Florida-based maker of drones
for law enforcement and military. Frost owns 14%.
ARNO THERAPEUTICS Developing antiprogestins
for breast, endometrial and prostate cancers. Opko
owns 9%.
ZEBRA BIOLOGICS Attempting to make generic
versions of antibody drugslike the bestselling
rheumatoid arthritis drug Humirathat could be
better than the original. Opko owns 29%.
DRONE AVIATION
The WATT drone has an

electric-tethered aerial
platform (ETAP).
OAO PHARMSYNTHEZ Russian developer and marketer of new drugs in Eastern Europe.
Opko owns a 17% equity interest.
RXI PHARMACEUTICALS Ladenburg took it public in December. Developing an RNA
interface to prevent skin scars. Opko has an 19% equity interest.
COCRYSTAL PHARMA New antivirals (hepatitis C, u,
Norovirus); Frost and Opko own 23%.
SEVION THERAPEUTICS Developing antibodies against
difficult targets; treating cancer and immunological
diseases. Frost and Opko own 20%.
NEOVASC Canadian maker of specialized cardiology
devices. Frost owns 22%.
CHROMADEX Maker of ingredients for nutritional
supplements. Frost owns 14.6%.
NEOVASC
The Tiara is a
minimally invasive
treatment for a
common form
of mitral-valve
disease.
VBI VACCINES Developing a technology platform to

design vaccines for hepatitis B, Zika and brain tumors.
Opko has a 25% equity interest.
MABVAX THERAPEUTICS Clinical-stage cancer immunotherapy. Frost and Opko have an estimated 5% interest.
MUSCLEPHARM Nutritional supplements. Frost owns
less than 5%.
modern generic-pharmaceutical business andgiven that

shares in Opko are down 39% in the last 18 monthsmore
than a little self-interested.
What we are building here is a company that will have
a half a dozen products, each capable of doing more than
a billion dollars in sales and some several billion, he says,
pointing to a printout displaying overlapping circles that
highlight ve core Opko markets: urology, nephrology,
genetics, bio-reference and aging/metabolic syndrome. In
the case of human growth hormone, where we are partnered with Pzer, that is a $3.5 billion market.
Unlike most of his pharma peers, Frost has the mindset of a savvy value investor, only its enhanced by a deep
96 | FORBES
JANUARY 24, 2017
understanding of molecular biology and a penchant for swiftly striking opportunistic deals. His office desk is stacked with
pitchbooks and proposals, as well as dual at-panel Bloomberg screens, with dozens of stocks on his watch list blinking green and red. Phil has an incredible vision of where to
position himself within health care, says Oracle Partners
Larry Feinberg, a veteran hedge fund manager who has
owned shares in Frost companies since the 1990s. He views
Opko as his holding company. It is his Berkshire Hathaway of
health care.
Through Opko and other entities, Frost has strayed far from
health care. He has big stakes in dozens of public and private
companies, ranging from Vector Group, owner of tobacco
company Liggett and commercial real estate broker Douglas
Elliman, to Castle Brands premium spirits and investment
rm Ladenburg Thalmann & Co. He has invested in a slew of
promising startups, such as a data-fusion company, a drone
surveillance provider and BioCardia, a biotech developed by
his college roommate, renowned Stanford Medical School
cardiologist Simon Stertzer, which is trying to nd a way to use
stem cells to rejuvenate hearts damaged by heart attack.
Tireless at age 80, Frost is working on his fth billion
in net worth, but he is giving it away nearly as fast as he is
making it. The Frosts have no children, but he and his wife,
Patricia, through their hands-on approach to philanthropy
and hundreds of millions in funding, are on a mission to
transform Miami from a city best known for its beaches, golf
courses and trendy Latin-Caribbean cuisine into a mecca for
art and serious science.
rosts Horatio Alger story contains a healthy dose of

serendipity. He was born in 1936, in the midst of the
Great Depression, the third son of a shoe-store owner
from South Philadelphia. A stellar student from the start, he
attended Philadelphias selective Central High School and
the University of Pennsylvania, majoring in French literature.
After his junior year in Paris studying at the Sorbonne, he had
a chance meeting with a former schoolmate at Penns cafeteria, alerting him to a scholarship that was being offered to a
new medical college in New York City called Albert Einstein
and available to graduates of his high school. Frost applied and
won a full scholarship. Einstein quickly established a reputation as one of the top med schools in the country.
His decision to specialize in dermatology also contained an
element of chance. As an undergrad he developed an unsightly
wart on his elbow that prompted him to go to a Penn faculty
member who happened to be doing research on cantharidin,
otherwise known as Spanish y, for an application to remove
warts.
I was interested in a specialty that would permit me the
time to reect and do [other] work. I knew that surgery could
never be for me because youre tied up in operating rooms
most of the time. And I needed the freedom to do things,
Frost says. Fortuitously, the professor who cured his wart later
offered him a postgraduate residency in dermatology at the

I had heard that an important Czech pharmaceutical
University of Pennsylvania.
company was being privatized by the government, Frost says.
After his residency and two years as a lieutenant comOne of my friends from Colombia, South America, had an
mander in the U.S. Public Health Service at the National Insti- apartment in Miami, and he had a Czech friend in Toronto.
tutes of Health, Frost landed a spot on the faculty of the UniSo Frost made some calls and found out that Novartis and
versity of Miamis dermatology department in 1966. Seeing
two other European companies were interested in bidding,
patients and teaching med school werent enough to satisfy his but Frosts Miami-Toronto connection was able to arrange
insatiable curiosity, so at night he invented a disposable tool
a last-minute meeting with Vaclav Havel, then the president
for taking skin biopsies (still used today). During negotiations
of the Czech Republic. I told him, Look, if you do a deal
to sell his invention to Miles Laboratories in 1969, Frost met a
with us, well guarantee youll keep at least 900 of the 1,200
young lawyer with a silver tongue named Michael Jaharis.
employees, says Frost, who shrewdly noticed that the politiFrosts friendship with Jaharis blossomed into a business
cians primary goal was saving jobs, not getting top dollar for
partnership after the lawyer decided to quit his corporate
the assets. The Czech deal, which cost Ivax only $50 million,
job to help Frost build a business around a novel ultrasound
included prime real estate, subsidiaries in all the former Soviet
device used to clean teeth that Frost had purchased. He had
Republics and $20 million in the bank.
a thriving dermatology practice, with patients that included
Phil turned Ivax from a domestic drug company to a
Jackie Gleason, who once lled Frosts mothers hospital room global generics-pharmaceutical company, Feinberg says. It
with roses after he discovered they were convalescing in the
wasnt subject to just the vagaries of the U.S. [market]. It really
same hospital. By 1972 he had become the chairman of derma- had strong positions in both generic and proprietary pharmatology at Miamis Mount Sinai Medical Center.
ceuticals throughout the entire world. It became a very valuThat same year, another chance meeting: At Miamis airable asset.
port, while waiting to board a plane to New York, Frost ran
In 2005 Israels Teva Pharmaceuticals paid $7.6 billion for
into a high school classmate who was a top executive at Key
Ivax, making Frost a billionaire. For the rst time.
Pharmaceuticals, then a struggling drugmaker focused on cold
ommand central for Frosts empire is a shimmering
remedies. By the time we got to New York, we agreed to put
15-story glass-and-steel building he owns at 4400
our little company, which had some cash and some inventions,
Biscayne Boulevard in downtown Miami. Lining the
together with Key, which was public, Frost says in his apartwalls of the 15th-oor executive suite, below an electronic
ment in New Yorks Pierre hotel, overlooking Central Park.
They had great technology, but they didnt have the people to ticker tracking Frost stocks, are beautifully framed photorecognize what they had. They had the rst controlled-release graphs of Art Deco Miami Beach circa World War II from
negatives Frost rescued when the citys Bayfront Park library
technology for drugs.
Key Pharmaceuticals was Frost and
Jaharis ticket to serious wealth. After
reformulating its main asthma drug,
Phils a face guy. He doesnt do meetings over the phone.
which had initially been combined
Its part of his calculus to get a gut feeling about people.
with a cough suppressant, into an
asthma-only remedy with a controlled
release, Keys Theo-Dur became the
was being demolished in the mid-1980s. Just outside Frosts
nations best seller. Key followed up with the rst nitroglyceroffice is a glass-enclosed atrium, where he lunches daily
in slow-release patch remedy (Nitro-Dur), used to treat heart
with senior executives, including Dr. Jane Hsiao, a brilliant
disease, also a big hit. Ultimately Schering-Plough purchased
Key Pharmaceuticals in 1986 for $836 million. By then Jaharis chemist with an M.B.A., whose late husband, Charles, cofounded Ivax with Frost. Hsiao is a vice chairman of Opko and
and Frost were on The Forbes 400. Frost, age 50, had a net
ranks 46th on the Forbes list of Self-Made Women, with a net
worth of at least $150 million ($330 million in current dollars)
worth of $320 million. Another regular lunch mate is Steven
and was Scherings largest individual shareholder.
Rubin, a former mergers-and-acquisitions lawyer who joined
But instead of retiring to collect dividends, Frost blazed
Frost in 1986 after Frost sold Key and started Ivax. Rubin is
a trail in the nascent generic-drug business with another
Frosts deals guy, sitting on the boards of many of his comcompany he formed, called Ivax. In the early 1990s, when the
panies. A newcomer to the inner circle is CFO Adam Logal,
low-margin generic-drug business was getting bad press for
Opkos accountant and Frosts liaison to Wall Street. The conproducts of questionable quality, Frost presciently bought up
versation is almost always about deals, which ow into Frost
companies and expanded internationally. Again he used connections to get an edge. In 1994, for example, Frost bought one headquarters on a daily basis. Often company executives and
others are invited to make presentations.
of the Czech Republics largest pharmaceutical companies,
Phil is a face guy, Rubin says. He doesnt do [meetings]
known as Glaena.
FROST
over the phone. Hell be like, I just read you have an idea. Why
dont you come down on Friday and see me? I think thats part
of his calculus to get a gut feeling about people.
One of Frosts CEOs is Richard Lampen, an ex-banker who
worked for Salomon Brothers in the go-go 80s and now runs
regional broker Ladenburg Thalmann on the 12th oor.
In the aftermath of the dot-com bubble in 2001, Frost
bought into Ladenburg, then a tired 120-year-old investment
bank known mostly for risky small-cap IPOs and cold-calling
brokers. Frost has since nanced its impressive recent growth.
In the last ten years revenues have climbed from $30 million to
$1.1 billion, and a series of regional brokerage acquisitions has
swelled the rm to 4,000 nancial advisors with client assets
of $130 billion.
Thanks to Phil, we punch way above our weight, Lampen
says.
One executive who spends a lot of time at Frosts staff luncheons these days is Dr. Charles Bishop, the man in charge of
Rayaldee, a newly approved drug that boosts vitamin D, which
Opko is aiming squarely at a segment of the $12 billion market
for treating chronic kidney disease. Opko acquired Bishops
startup in 2013. Frost had heard about the promising remedy
during a casual lunch with a Toronto pharma exec. Hours later
Bishop had a voice mail from Frost.
I returned the call immediately, Bishop recalls. He says
to me, in classic Phil fashion, Can you get to Miami in three
hours?
Given that it was nearly Thanksgiving, Bishop persuaded
Frost to wait a few days. We had prepared to give him a full
presentation. . . . I came with my slide deck. We got through
four slides and Phil says, Thats enough of the slide presentation. Can we talk about a deal?
That sort of impatience is a Frost deal-making hallmark.
He had done his homework and had decided that kidney disease was going to be a big business for Opko. Chronic kidney
disease afflicts some 25 million people in the United States,
including 9 million or so in stages 3 and 4. Opkos Rayaldee,
which analysts forecast could surpass $500 million in sales in
the U.S. alone, has the rst product approved by the FDA to
correct vitamin-D insufficiency through a one-a-day capsule
with an extended-release formulation.
Not all of Frosts deals have been warmly received on Wall
Street. In 2015 Frost announced he would pay $1.47 billion
for Bio-Reference Labs, one of the largest full-service clinical laboratories in the U.S., known for its expertise in genomics and genetic sequencing. Opkos stock plummeted by more
than 50% within four months of the announcement and has
begun to recover, by about 20%, only in the last few months,
with Rayaldees launch.
One promising Opko diagnostic that will leverage Bio-References network and marketing is Opkos new 4Kscore blood
test, which accurately assesses the risk of prostate cancer for
men with elevated PSA (prostate-specic antigen) readings.
Frost says, If you have an elevated PSA, the tendency was to
98 | FORBES
JANUARY 24, 2017
be biopsied, a painful procedure associated

with infection and bleeding. And of the biopsy
results, maybe 60% turn out to be to be negative. He notes that there are an estimated 30
million PSA tests per year in U.S., and perhaps
25% of the results are elevated. Opkos 4Kscore
test costs $1,900.
I wasnt a big fan of his purchase of BioReference labs, money manager Feinberg
admits. But people always doubt Phil because
they dont understand what he is doing. They
short his stock, but eventually he makes it
work. He doesnt give up. He has the tenacity
and capital.
avid Gibbes Miller, 23, has never

met Phillip or Patricia Frost, but the
elderly couple have opened doors
for him that he never could have imagined a
few years ago. A Tallahassee native, Miller was
an Eagle Scout and straight-A student in high
school, but his family couldnt afford to send
him to a prestigious private college without incurring signicant debt, so he took the scholarships he was offered to Florida State University, where he majored in religion with a premed
focus. At FSU Miller excelled, graduating
summa cum laude in 2015. During his senior
year he organized and hosted an undergraduate conference on bioethics at Florida State.
Upon graduation Miller was awarded Frosts version of
the Rhodes Scholarship. The program, called Frost Scholars,
sends ten public-university students from Florida and four
from Israel to Oxford each year to conduct research and earn a
masters degree in a STEM discipline.
At Oxford Miller studied medical anthropology with
an interest in epidemiology and public health, completing
a dissertation in the process. Another Frost Scholar in his
cohort was Kaitlin Deutsch, 23, a Gainesville native and
graduate of the University of South Florida. Deutsch was
recently awarded an NSF Graduate Research Fellowship
and is at Cornell getting her Ph.D. in entomology, studying native bees in an effort to boost their ability to pollinate plants. During her year at Oxford, where she earned
a masters in biodiversity, conservation and management,
she made an important discovery soon to be submitted to
a science journal: The so-called deformed-wing virus, a
scourge decimating honey bee colonies, may have jumped
species to another pollinator insect, the hovery.
The [Frost] scholarship set me up in a way that allows me to shoot much higher, says Miller, who is now a
predoctoral fellow at the NIH and will soon apply to top
medical schools.
Ultimately Miller and Deutsch both hope to return to
The Frosts are on a mission to make Miami a science mecca. Their new Museum of Science will feature a 500,000-gallon aquarium and a planetarium.
Florida. Nothing could make Dr. and Mrs. Frost happier.

We are hoping that everyone is going to come back that
graduated from Florida, says Patricia Frost, a former
teacher and current member of the board of governors of
Floridas State University System.
We want to make Miami more of a technological and
science center. When we came here, people thought of
Miami as anything but that, Dr. Frost says, noting that
the couples recent $100 million gift to the University of
Miami was made with this in mind. We feel that it begins
with education. We need to start at the top with the universities and even the graduate students. The fastest way
to achieve this is to attract a cadre of top-notch scientists,
starting with chemistry and molecular biology.
According to Frost, part of that $100 million will go toward developing an institute of chemistry and related sciences. There will be a new building and new professors,
he says. We hope all this will encourage new startups.
The Frosts have signed Warren Buffett and Bill Gates
Giving Pledge, but they are the opposite of so-called
checkbook philanthropists. In fact, they are so hands-on
that they have generally refused to hire consultants even
for their world-class art collection, which has included
American Abstract Expressionists, French Impressionists
and old masters like the Flemish painter Jean-Baptist de

Saive. The couple have endowed the University of Miamis
School of Music and Florida Internationals Art Museum,
and Mrs. Frost is regularly in touch with their directors,
even helping select architects for small remodeling jobs.
We are involved to the nth degree at the new science
museum, says Patricia, referring to the $45 million of the
Frosts generosity that has gone into the construction of
Miamis new 250,000-square-foot Patricia & Phillip Frost
Museum of Science. After signicant delays, the new facility, which has a planetarium and a massive multilevel
marine aquarium, will open in March 2017.
In the elegant breakfast room of the Frosts grand Venetian palazzo built on Miamis exclusive Star Island using
imported Italian limestone, Mrs. Frost serves an assortment
of homegrown tropical fruits, such as mamey, dragon fruit,
papaya and longan, all freshly picked from their expansive
gardens and greenhouse, which include more than 150 varieties of palms that Dr. Frost personally tends to. The museum will try to emphasize basic science as illustrated by what
is happening in this microclimate, Frost says. We want the
young people to have an experience so that when they walk
in they are awestruck. Then, as they spend more time there,
it inspires them to work in the sciences. F
FORBES LIFE
SPORTS
The Flip
Turn
By 30 he was the most
decorated Olympian of
all time. Now he seeks to
translate his prodigious
accomplishments into an
everlasting brand. Can
Michael Phelps be like
that other Mike?
BY MONTE BURKE
sorships he earned an estimated $7 million

a year. Many of the companies are longtime
partners and plan to stay that way. We hope
hes with us forever, says Kevin Plank, CEO of
Under Armour, which signed Phelps in 2010.
But Phelps is not content simply to be the
face of someone elses brand. In 2013 he left his
longtime sponsor Speedo, and the following
year he started a swimwear line called MP. He
found a partner in Aqua Sphere, a swimwear
and swimming accessories company, which
now sells Phelps-branded suits that range from
$40 to $475. Id like to someday have the biggest and best brand in swimming, he says.
His business role model is, of course,
Making a splash: In
addition to his MP
line, Phelps has a
program to teach
children how to
swim. The goal, he
says, is to get every
kid in the world
water-safe.
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ichael Phelps is
sprawled on a
couch in a Lower
Manhattan hotel,
sporting a beard, a gray beanie
cap, a white T-shirt and Under
Armour sweatpants and sneakers,
an athlete in repose. Hes in New
York to accept yet another lifetime achievement award for his
triumphs in ve Olympic Games,
another chance for him and others
to revel in his past glories. What
Phelps wants to talk about now,
however, is the future. Ive spent
decades staring at that black line
at the bottom of a pool, he says.
Im ready to do something new.
Im ready to channel my competitiveness into something else.
Phelps, 31, is four months removed from
what he swears was his last Olympics. The
second phase of his life has begun, he says,
and it has two main parts: He wants to create a brand that burns brightly for decades
to come, but he also wants to become a
global champion for the causes that mean
the most to himswimming and the wellbeing of children.
On the brand side Phelps is, of course, well
established as a corporate pitchman. Under
Armour, Omega, Intel, Activision and Beats
by Dre are among his well-known sponsors.
(Some of the lesser known: Master Spas, Krave
and Sina Sports.) At the height of these spon-
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FORBES LIFE
Michael Jordan, whose Nike Inc. Jordan
Brand sold $2.8 billion worth of shoes and
apparel last year.
Swimming obviously isnt as merchandisable as basketball, but Plank says Phelps ambitions shouldnt be dismissed: Michael has
that special trait, the ability to be clutch and
win when it counts, which he demonstrated
over and over at the Olympics. I think he can
be the king of all things water.
Phelps other main post-Olympics goal
involves his foundation, which he started in
2008 with the $1 million bonus he earned
from Speedo for his record-breaking eight
gold medals in Beijing. His biggest initiative is the im program (im for individual
medley, one of his strongest events, and for
the affirmation I am). The program focuses
on making children water-safe. (Drowning
is the leading cause of injury-related deaths
for kids ages 1 to 14 in the U.S. and the third
leading cause worldwide.) Phelps mother
made him take a water-safety course when
he was a boy, and he says thats the reason he
became a competitive swimmer.
The im program has 104 teams in all
50 U.S. states and another 176 in 33 other
countries, and through it 16,000 kids have
learned how to swim (for three-quarters
of them, the program was their first time
in a pool). Id like for that number to be
50,000 someday soon and then 100,000,
Phelps says. The goal is to get every kid in
the world water-safe.
To accomplish these dreams, Phelps will
need to become a lasting global icon, no easy
task for even the most successful Olympians.
Jesse Owens, in the end, was more a powerful symbol than a brand. Muhammad Alis
boxing career spanned two full decades after
his Olympic gold in 1960. And Caitlyn Jenner
remains famous four decades after decathlon
heroics in Montreal but for reasons no one
could have foreseen in 1976.
Yet Phelps was no ordinary Olympian. He
began as a 15-year-old prodigy in the 2000
Games and provided a glimpse of the greatness to come in the 2004 Athens Games.
Then came the triumph in Beijing in 2008
and the weary wins in London in 2012, followed by the drinking and depression and the
SPORTS
stint in rehab. All of which culminated in the

redemption in Rio in 2016. In the end Phelps
had won an Olympic record 28 medals, all
but 5 of which were gold.
That level of longevity and excellence in
the Olympics has given Phelps the kind of
global prole most American athletes lack.
And with his longtime agent, Peter Carlisle,
Phelps has been laying the groundwork for
a global presence since the beginning of his
career. He started visiting China and making
deals there ve years before the 2008 Games
(the Chinese call him the Flying Fish).
Phelps and Carlisle used the same playbook
for Riohe made four pre-Olympics visits
to Brazil and has since signed a deal with
the Brazilian media giant Grupo Globo. And
he will soon embark on a tour of Vietnam,
Ethiopia, South Africa and Latin America.
Phelps, of course, has been through this
before, when he retired for the rst time
after the 2012 Games. This time is different,
he says. Back then I just wanted to dig the
deepest black hole and be left alone. Now
life is so different and so much better. I have
Boomer [his 8-month-old son] and Nicole
[his wife]. I have other things to worry
about than just myself.
Phelps says he travels three weeks out
of every month, and at meetings he doesnt
just show up for the grip-and-grin but really
dives in. Im actually sitting at the table
now during the discussions, asking questions, he says. Some of this is self-reinforcing. I want to be out there now. If I isolate
myself as Ive done before, I know the road
Ill go down, and I know it wont be pretty.
A question remains: Is he really done
competing? Yes, denitely, he says, while
admitting that he said the same thing in 2012.
The 2020 Olympics is out of the question,
but Carlisle has been oating an intriguing
scenario regarding the 2024 Games. I think
Michael is 100% sure hes done right now, he
says. But what if the 2024 Games are awarded to Los Angeles? And what if there was a
spot open on a relay team? Carlisle leaves
the thought there, as any good agent would.
Phelps just smiles when this idea is
brought up. Im happy now, he says. And
Im excited for whats ahead of me.
FINAL THOUGHT
If your ship doesnt come in, swim out to it. JONATHAN WINTERS
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THOUGHTS ON
Tomorrow
THE PAST IS ALWAYS TENSE,
THE FUTURE PERFECT.
ZADIE SMITH
We can only
see a short
distance
ahead, but
we can see
plenty there
that needs
to be done.
The
belief that
tomorrow is
a different
place from
today is
certainly
a unique
hallmark of
our species.
DOUGLAS
COUPLAND
ALAN TURING
IVE SEEN THE FUTURE,

AND ITS MUCH LIKE THE
PRESENTONLY LONGER.
DAN QUISENBERRY
EVERY AGE HAS A

KEYHOLE TO WHICH
ITS EYE IS PASTED.
MARY MCCARTHY
Always remember that

the future comes one day
at a time.
DEAN ACHESON
AFTER ALL,
TOMORROW IS
ANOTHER DAY.
Someday we will try /

To do as many things as are possible.
MARGARET MITCHELL
Yesterday is but todays

memory, and tomorrow
is todays dream.
KAHLIL GIBRAN
Ah! The clock is

always slow. It is later
than you think.
Often do the spirits /

Of great events stride
On before the events /
And in today already
walks tomorrow.
SAMUEL TAYLOR COLERIDGE
ROBERT W. SERVICE
I think it has
something to do with
tomorrow: that there
always is one, and that
everything can change
when it comes.
FINAL
THOUGHT
THEREFORE DO NOT WORRY ABOUT TOMORROW, FOR

TOMORROW WILL WORRY ABOUT ITSELF.
Let us look
forward, and let
us go forward
with confident,
unhesitating tread.
MATTHEW 6:34
B.C. FORBES
AUGUSTEN BURROUGHS
SOURCES: SKETCHES FROM LIFE, BY DEAN ACHESON; DEATH OF WALLENSTEIN, BY SAMUEL COLERIDGE TAYLOR;
GONE WITH THE WIND, BY MARGARET MITCHELL; IT IS LATER THAN YOU THINK, BY ROBERT W. SERVICE; THE PROPHET,
BY KAHLIL GIBRAN; MICROSERFS, BY DOUGLAS COUPLAND; THE TIMES BOOK OF QUOTATIONS; SELF-PORTRAIT
IN A CONVEX MIRROR, BY JOHN ASHBERY; RUNNING WITH SCISSORS, BY AUGUSTEN BURROUGHS.
CLOCKWISE FROM TOP LEFT: EAMONN MCCABE/GETTY IMAGES; HERITAGE IMAGE PARTNERSHIP/ALAMY; PASCAL SAEZ/SIPA
PRESS/NEWSCOM; FOCUS ON SPORT/GETTY IMAGES; BETTMANN/CORBIS/GETTY IMAGES; ULF ANDERSEN/GETTY IMAGES;
FINEART/ALAMY; SSPL/GETTY IMAGES; NYP HOLDINGS/GETTY IMAGES; JULIO DONOSO/SYGMA/GETTY IMAGES
JOHN ASHBERY

Forbes USA - 24 January 2017

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Forbes USA - 24 January 2017

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I will

get the equipment to

Imagine what you can do with the right

An office wall isnt

Contents // JANUARY 24, 2017

86 | THE BLACK SHEEP

100 | THE FLIP TURN

COVER PHOTOGRAPH BY JAMEL TOPPIN

4 | FORBES JANUARY 24, 2017

VOLUME 199 NUMBER 1

JANUARY 24, 2017

15 | FACT & COMMENT // STEVE FORBES

24 | ROAD WARRIOR: PILOTS WATCHES

26 | THE $4.5 BILLION CABINET

28 | NEW BILLIONAIRE: ROCKY ROAD

29 | ON THE BLOCK: HAMILTON, AN AMERICAN AUCTION

30 | FORBES @ 100: ROCKET MEN

8 | FORBES JANUARY 24, 2017

Each day at The Kahala we are grateful for the opportunity to

Time is precious. Spend it graciously.

JANUARY 24, 2017

33 | INNOVATION RULES // RICH KARLGAARD

40 | NEW HOUSE ON THE BLOCK

60 | THE TRUMP DISCOUNT

62 | PROTECT YOURSELF FROM UGLY CURRENCIES

JANUARY 24, 2017 VOLUME 199 NUMBER 1

12 | FORBES JANUARY 24, 2017

I JUST RETURNED FROM ASIA,

Can a simple sheet of paper renew

A charitable donation was made on behalf of the author of this letter.

From the Makers of Paper and Packaging

FACT & COMMENT

IN NOVEMBER Indias government

immoral. It claims the move will ght

JANUARY 24, 2017

FACT & COMMENT

least fortunate among its population

Can the EU Survive?

with 100-year maturities. If Mexico,

Think youve never heard

EUROPES TOP YOUNG

JASON DERULO WEARS A VELVET

PHOTOGRAPH BY JAMEL TOPPIN

At 18 Daykin became the youngest person

A food-subscription business that

IS EUROPE CONSIGNED to a grim future of economic sclerosis? Not if the

EDITED BY ALEXANDRA WILSON, KATHRYN DILL AND STEVEN BERTONI

20 | FORBES JANUARY 24, 2017

Chef and owner

ABAC RESTAURANT & HOTEL;

Capelle founded Singa in 2012 to help refugees acclimate

In addition to his role as chef de cuisine for the

JANUARY 24, 2017 FORBES | 21

22 | FORBES JANUARY 24, 2017

HALSEY WEARS A JERSEY TOP BY

BY ZACK OMALLEY GREENBURG WITH MADELINE BERG AND NATALIE ROBEHMED

Slack is where work happens, for millions

1. 1858 Automatic Small

24 | FORBES JANUARY 24, 2017

The $4.5 Billion Cabinet

Secretary of the Interior

Kelly spent over four

Since Perry left the

26 | FORBES JANUARY 24, 2017