Forbes USA 20 January 2014 (e-magazine full)

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2 | FORBES JANUARY 20, 2014
contents — JAnUARY 20, 2014 VoLUMe 193 nUMBeR 1
88 | neXt-generation
entrepreneurs
Four hundred and fi fty

faces of the future.
11 | FAct & cOmmENt
by steve forbes
The lies continue.
lEAdERBOARd
14 | ScOREcARd
2013: a very good year.
16 | BEiNG REEd hAStiNGS
The man running the show at Netfl ix has a story
that any screenwriter would be proud of.
18 | thE YEAR’S hOttESt StARtUpS
A panel of VCs and entrepreneurs selected these
businesses from more than 300 contenders.
Plus: FORBES makeover.

20 | thE mOSt OvERpAid ActORS
Adam Sandler tops the list.
Plus: Up-And-Comers.
22 | ActivE cONvERSAtiON
A CEO eggs on the haters.
thOUGht lEAdERS
24 | cURRENt EvENtS
by paul johnson
Dealing with Iran: impossible?
26 | cApitAl FlOwS
by george leef
More college does not beget more
economic prosperity.
cover photograph by michael grecco for forbes
78 | the young and the reckless

Is Snapchat more than Silicon Valley’s
next vanishing act?
FORBES
UnDeR
30
30

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ibm.com/trademark. ©International Business Machines Corp. 2013.

4 | FORBES JANUARY 20, 2014
contents — JAnUARY 20, 2014
28 | iNNOvAtiON RUlES
by rich karlgaard
Enduring success: soft-edge excellence.
StRAtEGiES
30 | thE BiGGESt BEt EvER
George Soros, John Paulson and Leon
Cooperman are facing o against Sheldon Adelson
over the future of gambling in America.
by nathan vardi

34 | thE BiG EASY’S
mOviE mONEY pit
Louisiana politicians decided handouts
would turn the state into a Tinseltown rival.
Now they’re stuck with them.
by dorothy pomerantz
tEchNOlOGY
38
| iNSidE A BEAtiNG
SilicON hEARt
Designers have used computers for years to build
elaborate machines. But what about model-
ing complex experiences? Dassault Systèmes is
leading the charge.
by joann muller
43 | chiNA BitES iNtO BitcOiN
A speculative frenzy turned BTC China
into the world’s biggest Bitcoin exchange.
Then Beijing dropped the boom.
by kashmir hill
ENtREpRENEURS
46 | SEcONd liFE
Reggie Aggarwal almost lost his event
platform to bad luck and overspending.
Here’s how he clawed his way past $1 billion.
by karsten strauss
50 | REAdY, FiRE, Aim
TrackingPoint makes a $27,500 rifle
so smart that it can’t miss.
So why has the company been misfiring?

by abram brown
iNvEStiNG
54 | tURN dOctOR BillS iNtO
REtiREmENt iNcOmE
Creating super-IRAs out of health
savings accounts.
by william baldwin
56 | mONEY FROm NOthiNG
Looking for high yields? Consider buying the
funds that sell the call options on your stocks.
by john dobosz
57 | pORtFOliO StRAtEGY
by ken fisher
A big (bull) surprise for 2014.
58 | iNvEStOR chEckUp
by john buckingham
Beating back the bubble babble.
34 | it’s a flop
Louisiana’s Hollywood
tax-break horror show.
30 | high rollers,
high stakes
A bevy of billionaires battle
over online gambling.
43 | the
forbidden
coin
China’s Bitcoin
crackdown is
dashing the

dreams of a
cryptocurrency
entrepreneur.
50 | under the gun
Profiting from a futuristic
firearm is a tricky shot.
46 | saving cvent
In the event of emergency,
reinvent.

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6 | FORBES JANUARY 20, 2014
contents — JAnUARY 20, 2014
60 | iNtRiNSic vAlUE
BY DAVID PEARL
Cap ex comes out of the closet.
FEAtURES
72 | REiNvENtiNG wAll StREEt
Troubled UBS has been transformed into a wealth
management juggernaut.
BY HALAH TOURYALAI

30 UNdER 30
78 | NOw YOU SEE thEm
Will Snapchat cofounders Evan Spiegel and Bobby
Murphy become the youngest self-made
billionaires ever—or will Snapchat fade
into business infamy?
BY J.J. COLAO
88
| 30 UNdER 30 liSt
Introducing the brightest stars under the
age of 30 in 15 dierent fields.
EDITED BY CAROLINE HOWARD AND MICHAEL NOER
liFE
104 | pARAdiSE 2.0
Can Larry Ellison model the future on the
Hawaiian Island of Lana’i?
BY LAURIE WERNER
112 | thOUGhtS
On New Year’s diets.
ExclUSivE!
BRUNO mARS’
30 UNdER 30 plAYliSt
If you really do want to be a billionaire, start with
these 22 songs, handpicked by our guest DJ,
Grammy-winner (and 30 Under 30 nominee)
Bruno Mars, to enjoy while reading this issue.
To listen along, go to forbes.com/under30.
“Move On Up” - Curtis Mayfield
“Mirror in The Bathroom” - The English Beat
“More Than a Woman” - Bee Gees

“Devil’s Pie” - D’Angelo
“Waters of Nazareth” - Justice
“God Only Knows” - The Beach Boys
“Shake a Lil’ Somethin’” - 2 Live Crew
“Little Red Rooster” - Luther Allison
“Am I High” - N.E.R.D
“Butter” - A Tribe Called Quest
“Da’ Dip” - Freak Nasty
“Me Name Jr. Gong” - Damian Marley
“Kung Fu Fighting” - Carl Douglas
“All Me” - (feat. 2 Chainz & Big Sean)
“Get On the Floor” - Michael Jackson
“Animal” - Miike Snow
“Somebody to Love Me” - Mark Ronson & The
Business Intl.
“Won’t Fade Away” - Lewis Taylor
“Salute To Kareem” - Red Hot Chili Peppers
“Midnight Rider” - The Allman Brothers Band
“Sweat (A La La La La Long)” - Inner Circle
“Young Girls” - Bruno Mars
72 | THE NEW UBS
Winning the war for the
wallets of the world’s
wealthiest.
54 | IT’S WHAT THE
DOCTOR DIDN’T ORDER
How to use an HSA to
play the stock market
triple tax free.
104 | ELLISON’S EDEN

Is economic viability a
forbidden fruit for the tech
honcho’s Hawaiian hideaway?
95 | SUPER BOWL MVP
Bruno Mars’ halftime
performance could be
an even bigger hit than
his latest album—if the
weather cooperates.

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BUSINESS
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Tom Davis CHIEF MARKETING OFFICER
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8  FORBES JANUARY 20, 2014
FORBES
IN BRIEF
EDITOR-IN-CHIEF
Steve Forbes
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jaNuaRy 20, 2014 — volumE 193 NumBER 1
The Social Network
On Our New App
BY LEWIS D’VORKIN
What’s a magazine? At FORBES we think it’s an experi-
ence, not sheets of paper. Increasingly, consumers do, too.
It’s about turning, clicking, tapping or flipping to discover,
read, learn or be entertained. These actions seem natural.
The magazine we’ve produced for 96 years has nearly
1 million subscribers. On Flipboard, only a few years old,
our stories attracted 1.8 million readers in October and
racked up 44.5 million flips. Still, magazine experiences
must evolve for new behaviors. In the age of social media
they need to be far more social.
Most magazines remain solitary experiences. A reader’s
relationship is with the brand, the editors who pick the
stories and the authors who write them. There’s never
been a way for readers to easily share, connect or be part of
a community.
We’re changing all that. Last January we launched an
iPad app that made it easy to clip and share text, photos,
charts or whatever. Pinch the screen with two fingers.
Select and frame the content. Tap a Twitter or LinkedIn
or Facebook button to share. With this issue we’re taking
a big leap forward. Now FORBES enthusiasts can be part
of a first-of-its-kind mini social network. Clippings are
included in an image stream for all app subscribers to see.
Tap any clip in the stream and go directly to the content—
or share it again. Editors select stories for each issue. The
community curates them for others.

“Stream,” as it’s called, was developed by MAZ, our app
partner. A startup founded by ex-Apple and ex-Adobe de-
signers and engineers, MAZ understands the challenges of
building new experiences with economic eciency. Most
media companies hire large, expensive stas to re-create
their magazines for tablets and smartphones. The MAZ
solution repurposes PDFs used in print magazine produc-
tion by layering on actionable buttons. Last March our
Billionaires issue contained 2,000 links to Forbes.com posts.
“If you think about it,” says MAZ founder Paul Canetti,
“we’ve been sharing content the same way for 20 years.
Copy text, paste text, get text—words or links. ‘Stream’ is
part of the online world’s massive shift from text-based
media to visual-based media.”
For this 30 Under 30 issue on iPads and iPhones, there’s
audio, too. Bruno Mars has curated a 22-song playlist to
accompany this special issue. Clip, share, join the stream—
and listen in. It’s a special experience.
F



If you had told any financial observ-
er in 2008 that the Federal Reserve
would expand its balance sheet five-
fold in five years, you’d have encoun-
tered astonished disbelief, followed
by the assertion that if ever such a
thing unfolded a Weimar Republic-like hyper-
inflation would ensue. After all, in the inflation-

beset 1970s and early 1980s, when the Consumer
Price Index was roaring ahead at a 13% annual
clip and interest rates were headed for the moon—
short-term rates peaked at 21.5% and long-term
Treasurys at 15.75%—the monetary base (currency
plus bank reserves on deposit at the Fed) had in-
creased 225% from 1970 to 1981, a 12-year period.
Contrast that to the 400% surge in the mon-
etary base since 2008. While there are valid
arguments that Washington has been chang-
ing the CPI to understate the rise in the cost of
everyday products and services, there’s no gain-
saying the fact that we are, thankfully, nowhere
near the horrors of the 1970s.
What gives?
What gives is that we focused too much on
the bloat of the monetary base and not nearly
enough on the unprecedented suppression of
both
short- and long-term interest rates. Never
before had our central bank knocked down the
overnight cost of money to near 0%. And never
before had it attempted to beat the longer-term
cost of money to a fraction of its real price. (In
the early 1960s the original Operation Twist—
named after the dance made famous by Chubby
JANUARY 20, 2014
FORBES
| 11
FACT & COMMENT — STEVE FORBES

FORBES
THE LIES
CONTINUE
BY STEVE FORBES, EDITOR-IN-CHIEF
“With all thy getting, get understanding”
changes that would have
changed the plans dramatically
and led to large price increases.
Fighting Last War?
THIS YEAR Democrats will soon
be wondering if ObamaCare covers
political shellackings.
Nothing is more personal than
health—for us, our children, parents,
grandchildren, friends. Messing
with people’s medical care arouses
worries and anger as no other
subject can. And this is where the
Obama Administration made a fate-
ful miscalculation. We’ll tolerate
some spin on taxes, spending, regu-
lation and scandals, but we have zero tolerance
for lying or cynically twisting the truth regard-
ing issues that aect our access to health care
and the doctors we trust.
It’s the White House’s brazen abuse of the
truth regarding ObamaCare that will lead to a
Democrat debacle in November. We’re all too
familiar with the President’s lies about our
being able to keep our policies and doctors.

But the contempt for the public continues.
Remember when millions of people and small
businesses received cancellation notices from
their insurers and the President declared that,
okay, you could keep your insurance in 2014?
Another lie.
Here’s an astonishing excerpt from a letter
sent to individual policyholders of Horizon
Blue Cross Blue Shield of New Jersey:
Horizon BCBSNJ wanted to let cus-
tomers keep their policies in 2014, based
upon President Obama’s declaration that
he would allow cancelled plans to be re-
newed. The federal government, however,
notified the New Jersey Department of
Banking and Insurance that current poli-
cies
cannot
be renewed without major

12 | FORBES JANUARY 20, 2014
FORBES
FACT & COMMENT — STEVE FORBES
F
Checker—was mercifully short-lived.
It had been undertaken in a misbegot-
ten eort to strengthen the dollar.)
Only a handful of economists,
most notably FORBES columnist
David Malpass, have pointed out

that this monetary version of price
controls is a form of credit allocation.
The federal government easily got
all the cash it wanted at ultracheap
rates, i.e., deficits without tears. Big
companies had no trouble access-
ing credit and putting their balance
sheets in pristine order. But credit to
small and new businesses dried up,
a drought magnified enormously by
bank regulators who told their charges
to reduce risk and to document six
ways to Sunday any loans to a nonbig
borrower. Remember, small and new
businesses are the source of most
new jobs. Through its quantitative
easings the Fed eectively sucked up
much of the financial market’s short-
term credit that normally would have
gone to these businesses.
Malpass observes: “The U.S. pri-
vate sector has been facing one of the
tightest money/regulatory policies in
history.”
The fact that the Fed has started
to taper, albeit at a tepid pace, is good
news. It will mean the beginning of
rebuilding our warped credit markets.
There are two other, very obvious
factors that explain why there has

been no explosion in higher consum-
er prices. One is higher taxes and an
ever more convoluted and corrupt tax
code; the other is the chaotic uncer-
tainty that Obama Care has visited on
business and the American people.
The suppression of interest rates
has been mimicked by other coun-
tries, with equally distressing results.
These have been magnified by even
stupider regulations and higher levels
of taxation than those we suer.
(Make no mistake, the Fed’s un-
dermining of the dollar since the early
part of the last decade has wrought
immense havoc. For instance, with-
out a weak dollar there would never
have been a housing bubble.)
Of course, since virtually no cen-
tral banker today—not to mention
political leaders or economists—un-
derstands monetary policy, an inflation
disaster could still eventually unfold.
For now, though, credit suppression
of a kind we’ve never seen before and
growth-crushing levels of taxation
and regulation will keep us from en-
joying vigorous, sustainable growth.
So don’t get too giddy over our
“improving” economy. We’re not

suering pneumonia, but we’re still
being worn down by a persistent flu.
hitlercare
the practice in 2002, it was suspected
that doctors and hospital administra-
tors were occasionally killing patients
to free up hospital beds. Procedures
have (supposedly) been tightened. Bel-
gium also passed a euthanasia law in
2002, and Quebec is about to enact one.
Of course, advocates claim they only
want to end the misery of those writh-
ing in unspeakable pain. But this raises
the question: Why don’t we do more
medically to relieve such suering?
The number of adults euthanized
in Belgium soared 25% between 2011
and 2012; the annual toll is now seven
times what it was when the law was
enacted and accounts for 2% of all
deaths. A similar percentage in the
U.S. would result in more than 50,000
killings. To put this in perspective, the
total number of people murdered each
year in the U.S. is about 16,000. In
Holland euthanasia ocially accounts
for 3% of deaths (proportionately that
would be 75,000 in the U.S.), but in
practice, the percentage is far higher.
And now we’re on the way to killing

children in the name of compassion.
As euthanasia becomes more ac-
cepted—and we become more numb
to the horror of murdering people
like this—we’ll descend to the next
abomination: pressuring the sick to
discontinue treatment for a likely fatal
illness in the name of “saving scarce
resources” for people who have more
years ahead of them. After all, an
enormous percentage of medical costs
are wracked up by people who have
less than six months to live. Britain
already has its own version of a death
panel, which has a formula for deter-
mining who gets expensive treatment
and who doesn’t.
Let’s be clear. We’re not talking about
adults deciding they don’t want “heroic”
methods applied when they’re suer-
ing a fatal illness; we’re talking about
the conscious taking of a life by people
who are trained to cure us of illness.
The true mark of a civilization
is in how it treats its most vulnerable
members.
Belgium is on its way to allowing
doctors, with parental consent, to kill
children deemed to be aicted with
“constant and unbearable physical

suering.” The kids must also sign o
on this, as if a child has the capacity
to reason like an adult.
We are on the malignantly slippery
slope to becoming a society like that
envisioned by Nazi Germany, one in
which “undesirables” are disposed of
like used tissue. While the Nazis carried
this ideology of death to its ghastly logi-
cal conclusion, the belief that it would
be good for the human race to improve
itself—as breeders do with horses, dogs,
cows and other animals and plants—
was also widespread in numerous other
countries, including the U.S., before
WWII. It was called eugenics, and
under its banner countless hundreds of
thousands of people, particularly those
deemed mentally handicapped, were
forcibly sterilized to prevent them from
fathering or birthing children. Before
the war Nazi Germany killed upwards
of 8,000 children judged to be “men-
tally deficient” or incurably ill.
The Holocaust and other Nazi
atrocities sidetracked the eugenics
movement. But now it’s making a
comeback in new garb—we want to
kill only to reduce suering.
Several countries already allow adult

euthanasia. In Holland, which legalized

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7/2013 8/2013 9/2013 10/2013 11/2013 12/2013
ROBERT PERA
RICHARD SCHULZE
ELON MUSK
WILLIAM ERBEY
MARK ZUCKERBERG
SHELDON ADELSON
JEFF BEZOS
JANUARY 20, 2014 FORBES | 15
June 28
Jon Oringer becomes
a billionaire eight
months after
Shutterstock’s IPO.
August 3
Red Sox owner
John Henry buys
the
Boston Globe
for $70 million;
two days later Je
Bezos pays $250
million for the

Washington Post.
August 15
Private equity billionaire
Josh Harris and a partner
buy the New Jersey Devils
for $320 million.
September 2
Eike Batista, the world’s seventh-richest
person in 2012, then worth $30 billion,
ceases to be a billionaire as stock in his
oil and gas company, OGX, plummets.
October 29
Michael Dell takes his
namesake computer
company private in a
$25 billion deal.
November 4
Hedge fund billionaire Steven
A. Cohen’s SAC Capital agrees
to pay $1.8 billion in fi nes and
penalties after pleading guilty
to securities fraud.
November 7
Twitter’s IPO confi rms that Evan Williams is a
billionaire and boosts Jack Dorsey’s fortune by
$450 million in one day.
November 12
Francis Bacon’s
Three Studies of Lucian Freud
sells for $142 million, the most ever for an

artwork at auction. The next night Steven A.
Cohen sells art for more than $80 million,
including an Andy Warhol for $20.3 million.
November 15
E-tailer Zulily goes public,
propelling founder Mark Vadon
into the billionaire ranks.
WILLIAM ERBEY
+$1.8 BILLION
YEAR-END NET WORTH:
$3.1 BILLION
OCWEN FINANCIAL HAS
A BIG YEAR CATERING
TO UNDERWATER
HOMEOWNERS.
ELON MUSK
+$4 BILLION
YEAR-END NET WORTH:
$6.6 BILLION
TESLA MOTORS TAKES
OFF IN 2013, DESPITE
A FEW SPEED BUMPS
ALONG THE WAY.
MARK ZUCKERBERG
+$11.3 BILLION

YEAR-END NET WORTH:
$23.5 BILLION
FACEBOOK SHOOTS PAST
ITS IPO PRICE IN JULY AND

JOINS THE S&P 500 IN
DECEMBER.
JEFF BEZOS
+$12 BILLION
YEAR-END NET WORTH:
$35.6 BILLION
AMAZON CEO’S
FORTUNE HAS MORE
THAN DOUBLED IN THE
PAST TWO YEARS.
+200%
+166%
+160%
+148%
+93%
+67%
+51%
SOURCES: INTERACTIVE DATA VIA FACTSET RESEARCH SYSTEMS; FORBES. NET WORTH DATA THROUGH DEC. 10, 2013.

LEADERBOARD
655
Netfix’s
highest-ever price/earnings ratio, in
March 2013, when its stock was at $192.
16 | FORBES januaRy 20, 2014
Netix’s subscriber base has doubled to 40 million since 2010,
and its stock price quadrupled to $375 last year, making it the
best-performing stock on the S&P 500. Its CEO’s long journey to
that triumph has been a tale any screenwriter would be proud of.
by connie guglielmo

MARCELO HERNANDEZ / GETTY IMAGES
into AfricA
Graduates from Bowdoin Col-
lege in 1983. Joins the Peace
Corps and teaches math in
Swaziland for two years.
iPo
Netflix goes public in
2002—revealing how prof-
itable the business can be.
Blockbuster starts mailing
DVDs two years later.
Netflix gains its millionth
subscriber in 2003.
beAting blockbuster
In 2006 Netflix ships its more
than 42 million DVDs to
6.3 million subscribers. Block-
buster falters and announces
in 2013 that it’s closing its last
stores and shutting down its
mail-order service.
from Apollo 13 to
netflix
Cofounds Netflix in 1997 to mail
out DVD rentals for a monthly
fee after getting hit with
$40 in late charges on an
Apollo 13 rental.
booby Prize

Creates the Netflix Prize for a
better system to predict what
people want to watch. Pays
out $1 million to the winner in
2009 but decides implement-
ing the solution wouldn’t be
profitable enough.
cAtAstroPhe
Hastings tries to split Netflix
into two companies in 2011:
Qwikster for DVDs and Netflix
for streaming. Loses 800,000
subscribers, share price plum-
mets, and three weeks later
he gives up the plan. Rumors
spread that he will be fired.
internet tV
Launches an original series,
House of Cards, in February
2013—a huge hit. It wins three
Emmys. Now Netflix plans to
spend $3 billion on new content.
ceo in trAining
Obtains a master’s in computer
science at Stanford in 1988
and starts Pure Software to
make debugging tools. Loses
confidence as CEO; tries to fire
himself. Company sells for
$750 million in 1997, giving him

the cash to start Netflix.
growing PAins
Netflix settles a class-
action lawsuit in 2006 over
delayed mailings to expen-
sive heavy users. Faces a
tech crisis in 2008 when
a software glitch keeps it
from sending out DVDs.
streAming
Unveils streaming service in 2007,
and within three years is sending
movies to Xbox, Apple TV and
other devices. Joins the S&P 500
in 2010. Profits from domestic
streaming surpass DVDs in 2013.
path to success
being ReeD HASTingS
12/31/12 6/21/13 12/18/13
90
100
150
200
250
300
350
$400
stock price
Source: InteractIve Data vIa
FactSet reSearch SyStemS.

What could power tomorrow’s
GLOBAL STOCK GROWTH?
FSCPX
FIDELITY
®
SELECT CONSUMER
DISCRETIONARY PORTFOLIO
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®
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U.S. household net worth is
at its all-time high
U.S. consumer spending — over 70% of GDP
2
— is likely to
increase as rising employment and real estate prices further
strengthen household fi nances.
3
At Fidelity, we use our global reach and research
expertise to bring you smart investing ideas.
Get our full perspective and fund details now.
Fidelity.com/stockgrowth | 800.FIDELITY
More than 2 billion people
will soon have disposable income for the fi rst time.

By 2025, 53% of the world’s population will have entered the middle class.
The majority will be in the developing world, notably Asia.
1
Before investing in any mutual fund, consider the investment objectives, risks, charges, and expenses. Contact Fidelity for a
prospectus or, if available, a summary prospectus containing this information. Read it carefully.
Keep in mind that investing involves risk. The value of your investment will fl uctuate over time, and you may gain or lose money.
Stock markets are volatile and can decline signifi cantly in response to adverse issuer, political, regulatory, market, or economic developments. Foreign securities
are subject to interest rate, currency exchange rate, economic, and political risks, all of which are magnifi ed in emerging markets.
1
McKinsey Institute as of June 2012.
2
The World Bank.
3
Haver Analytics as of June 2013.
Fidelity Brokerage Services LLC, Member NYSE, SIPC. © 2013 FMR LLC. All rights reserved. 666521.4.1
These funds are looking for
the companies poised to thrive.

LEADERBOARD
18 | FORBES januaRy 20, 2014
44%
Amount by which T-Mobile’s net subscriber
growth in the third quarter of 2013 exceeded
both AT&T’s and Sprint’s.
JACKET ($2,495), SHIRT ($350) AND JEANS ($385) BY PORTS 1961; WWW.PORTS1961.COM. WATCH ($1,095) BY CT SCUDERIA; WWW.CTSCUDERIA.COM. SHOES ($1,220) BY LOUIS VUITTON; WWW.LOUISVUITTON.COM.
TOP: AP; MAKEOVER IMAGE (LEFT): GETTY IMAGES.
CEO MAKEOVER: PhOtOgRAPhER: CAMEROn R. nEilsOn; stylE DiRECtOR: JOsEPh DEACEtis; FAshiOn AssistAnt: ERiC AzEVEDO; stARtuPs by nAtAliE RObEhMED
forbes makeover
T-MOBILE’S JOHN LEGERE
Our fashion pros call up a new look for the telecom CEO.

JOsEPh AbbOuD: The award-winning designer and
entrepreneur got his start at Louis Boston before serving
as director of menswear design for Ralph Lauren.
He launched his namesake brand in 1987 and is currently
the chief creative director for Men’s Wearhouse.
KAthy iRElAnD: The supermodel turned supermogul
is the chief executive and chief designer of kathy ireland
Worldwide, a design and marketing firm she launched
in 1993. Women’s Wear Daily has named her one of the
50 most influential people in fashion.
thE VERDiCt
JA: He’s so much more put
together. He’s kind of casually
cool, not trying too hard.
Ki:
He keeps his youthful attitude
while enhancing his strong pres-
ence as a passionate CEO.
Before After
shOEs
Ki:
His shoelaces are too long—a
safety problem and a style deterrent.
JA: Matching his laces to his shirt is
trying too hard. I’m not buying that
for a guy his age anyway.
THE “AFTER” IMAGE IS A SIMULATED IMAGE OF WHAT JOHN LEGERE WOULD LOOK LIKE IF HE HAD ACTUALLY PARTICIPATED IN THE FORBES MAKEOVER, WHICH HE DID NOT. NOR DOES HE ENDORSE ANY PRODUCTS PICTURED HERE.
eNTrePreNeUrs
A FORBES panel of venture capitalists and
entrepreneurs picked these new U.S. businesses

from more than 300 contenders, judging them
on breakthrough ideas, fast growth, solid funding
and promise for the future. For more, go to forbes
.com/hotteststartups.
THE YEAR’S
HOTTEST STARTUPS
shiRt
JA: I’m not sure when it happened
that if you’re a CEO and you want to
be cool you wear a T-shirt. That was
a black date in fashion history.
JACKEt
Ki: Accenting the blazer with a
windowpane plaid shirt gives an
exciting pop of pattern.
JA: It just feels like a more expensive
jacket with a little more shape, and
he’s obviously a guy who can wear
a leaner cut.
shOEs
JA: The suede shoe with a sneaker
bottom is a cool way to do some-
thing a little casual but not feel like
he should be playing basketball.
Ki: Combining the crisp trousers
with the taupe suede shoes helps
him stay fresh and hip.
bluE APROn
Former venture capitalist Matt
Salzberg and two partners began

delivering unusual ingredients
and easy recipes to your door
for $9.99 in August 2012. With
$8 million from investors they’ve
now reached 300,000 meals a month and
can serve 80% of the U.S. population.
COinbAsE
It’s the easiest way to buy and transfer
Bitcoin. With $31 million in backing, it helps
17,000 merchants, including
OkCupid and Reddit, use the
virtual money and has more than
600,000 users. It takes a 1% cut
per transaction on the hyper-
volatile currency.
EstiMizE
Crowdsourcing comes to
stock picking. Estimize’s users
estimate companies’ future
earnings, and its 18,000
forecasters have beaten Wall
Street’s seers 69% of the time. It has won
a deal to get its data onto Bloomberg’s
300,000 terminals.
hOMEJOy
Mopping your home for $20 an hour may
not sound lucrative, but brother and sister
Adora and Aaron Cheung already have their
cleaning service operating in 31
cities after raising $40 million

in funding. They pay their
cleaners a fair $15 an hour and
plan to scale up big in 2014.

FIND OUT WHAT CORNERS WE DO NOT CUT, EVER / 877 JET 2806 / NETJETS.COM
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BUT IT CAN BE EARNED.
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what only the highest investment
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for business, for family, for life

LEADERBOARD
20 | FORBES JANUARY 20, 2014
14
Number of Adam Sandler’s films
that have grossed more
than $100 million domestically.
up-and-comers BY KaTHrYn dILL; acTors BY doroTHY pomeranTZ
TOP: NEWSCOM; SANDLER: SCHULZ / DPA / LANDOV; HEIGL: ASTRID STAWIARZ / GETTY IMAGES; WITHERSPOON: JOHN SCIULLI / GETTY IMAGES;
CAGE: ALBERTO E. RODRIGUEZ / GETTY IMAGES; JAMES: EVAN AGOSTINI / INVISION / AP; WASHINGTON: MONICA SCHIPPER / GETTY IMAGES; CARELL: TODD WILLIAMSON / INVISION / AP
Je Hyman RETROFIT
A visit to a weight-loss resort inspired Hyman, 45, to start
a service that gives its users personalized programs to

lose 10% to 15% of their weight in 12 months, interacting
with coaches through Skype. He says more than 90% of
his clients have shed an average of 20 pounds within a
year, and half of them are men. Retrofit has raised $15.7 million, and it nearly
tripled its customer base in the past year.
Eric Carreel and Cédric Hutchings
WITHINGS
Five years ago the two Frenchmen launched a Wi-Fi-
enabled scale that sent weight, fat-to-lean ratio and
other data to your smartphone and coached you on
improving your results. Now 54 and 37, they’ve added
other devices, including blood pressure monitors, and they raised
$30 million in a funding round this past summer.
Michael Horvath and
Mark Gainey
ST RAVA
Horvath, 48, and Gainey, 45, created their app in
2009 to let you track a run or a bike ride with your
smartphone; its biggest draw is that paying mem-
bers get to compete with other local users, as well
as set training goals. In 2013 they doubled their worldwide user base
and tripled their revenue. They’ve raised $25 million in funding.
TO YOUR HEALTH
UP-AND-COMERS
Struggling to get t after your
holiday binges? These entrepreneurs
want to help you.
How many days do you exercise each week?
ASK 50 BILLIONAIRES HOLLyWOOD
THin cATs THE mOsT OvERpAid AcTORs

Adam Sandler is one of the
few movie stars who can
still demand a paycheck
north of $15 million per
film. But is he worth it? Not
according to our calcula-
tions, based on how much
an actor’s last three movies

earned at the box oce per
dollar of pay. Jack and Jill,
in which he played twins,
grossed $150 million but
cost so much to make that
it lost Sony money, and
That’s My Boy was a major
bomb. A consolation: 2012’s
animated Hotel Transylva-
nia was the biggest hit of his
career.
28.9%
2 or 3
20.0%
AROUND 5
8.9%
11.1%
31.1%
NEARLY
EVERY DAY
RESPONSES TO AN ANONYMOUS POLL OF

50 MEMBERS OF THE FORBES WORLD’S BILLIONAIRES LIST.
1. adam sandLer
RETURNS
1
$3.40 FOR EVERY
$1 PAID
2. KaTHerIne HeIGL $3.50 FOR EVERY $1 PAID
27 Dresses in 2008 made her the new queen of
romantic comedies … until flops like Killers and One
for the Money.
3. reese WITHerspoon $3.90 FOR EVERY $1 PAID
She’s in the middle of reinventing her career to
produce her own movies. Expect her to give herself a
big pay cut.
4.
nIcoLas caGe $6.00 FOR EVERY $1 PAID
We didn’t include animated movies; if we did, his
DreamWorks hit, The Croods, would make him
look better.
5. KeVIn James $6.10 FOR EVERY $1 PAID
He was one of the film industry’s most bankable
actors until he flopped in 2012 with Here Comes
the Boom.
6. denZeL WasHInGTon $8.30 FOR EVERY $1 PAID
As one of Hollywood’s most respected actors he can
demand a huge paycheck, but he doesn’t always win
at the box oce.
7. sTeVe careLL $10.00 FOR EVERY $1 PAID
He had a major misfire with The Incredible
Burt Wonderstone. It grossed just $22 million

worldwide.
1
AVERAGE PROFIT TO THE STUDIO BASED ON THE COSTS AND REVENUES OF EACH OF THE ACTOR’S
LAST THREE MOVIES IN THE THREE YEARS ENDING JUNE 2013.
1
0

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HDFaces allows us to build much
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Stories of Innovation

22 | FORBES januaRy 20, 2014
LEADERBOARD
MAKING THE EGG OBSOLETE
FORBES, DECEMBER 16, 2013
37,172 VIEWS ON FORBES.COM
Josh Tetrick sees the future in mayonnaise, sta reporter
Ryan Mac reported. The CEO of the San Francisco startup
Hampton Creek is pushing an eggless version that he says is
far healthier and cheaper than the usual slop and is a first step
to a new sustainable food industry. Investors, including Bill
Gates and Peter Thiel, have agreed to the tune of $6 million.
When commenters started weighing in on the article online,

Tetrick jumped right in. “Nothing against San Francisco
or its food, but with everybody dieting, who eats mayon-
naise anymore?” asked Bodo. Tetrick shot back, “Over $11B
in sales last year—and growing.” Gear Mentation wrote, “An
egg substitute is great, as long as it has at least as much bal-
anced protein.” Tetrick’s response: “Plants contribute over
60% of the per capita supply of protein around the world.
Closer to the Hampton Creek HQ (in North America),
animals contribute about 70% of our protein. The plants
we use have it.” Joseph Brunner: “News flash to liberals and
tree huggers: God created eggs over billions of years. It’s
the perfect protein and lutein source. We don’t want your
do-gooder plant goo substitute.” Tetrick: “God also created
plants, I think :).” Zan Shin commented, “Since the energy
input to food energy output is so much lower, and billion-
aires like Gates are helping subsidize startup costs, the
price should also be dramatically lower than real eggs. And
yet nowhere in the article is this mentioned.” Tetrick didn’t
respond to that one. Meanwhile, the Washington Post drew
an almost 400-word article out of a single sentence in the
story. Under the headline AL GORE GOES VEGAN, WITH
LITTLE FANFARE it reported, “Gore’s recent decision to
forgo animal products surfaced as an oand reference in
a FORBES magazine piece,” and added, “Gore’s oce did
not immediately respond to a request for comment.”
HOW SMART IS INVESTING
IN ART?
@TODDNEV
Buy art that makes you
happy. That’s the return.

@WINZONLINE
Art has yielded me the high-
est return of all investment
classes. Own over 70 pieces
from three continents … lack
of liquidity, though.
@AMOURCOLETTE
It’s about the art, not invest-
ment. Whatever it may yield
is simply a bonus.
365 WAYS TO GET RICH
ZA-ZAAM FLAH
The problem is where do
you get the little money
that is required to get more
money?
KELVIN LASWAI
366: Shut down your
Facebook and get a job!
PEDRO SOUSA
Plenty of entrepreneurs use
Facebook (and other social
media) to make money. Just
saying.
LUCIEN HOOPER TURNED
$1,000 INTO $42 MILLION
@BILL_SPUR
As soon as I finish my time-
travel machine, I’ll go back
and make this investment.

NHL wOES
FORBES, DECEMBER 16, 2013
11,796 VIEWS ON FORBES.COM
Pro hockey is a great busi-
ness—in Canada. In the
U.S., it’s mostly a money-
loser, sta writer Tom Van
Riper revealed. When a
reader suggested that the
U.S. is a growth market to
be carefully tended, fel-
low commenter K. Webb
pounced: “For the U.S. to
be considered [that] you
would expect there to be
a number of cities capable
of profitably sustaining an
NHL team that currently
don’t have one…. There
aren’t any.” Ronald Pudzs
added, “What I don’t un-
derstand is why the NHL
would expand … in the
southern states before
fully developing hockey
in the north. Teams in
Seattle or Portland would
create so much more ex-
citement.” Susie Crawfish
knew just who to blame:

“NHL Commissioner
Bett man keeps blocking
NHL expansion in Can-
ada. Could you forward
him this article, please?”
fAvOrITE
TwEET
@RosabethKanter (on new
GM CEO Mary Barra):
It’s official. Girls
like cars. And car
companies like women
driving them.
active conversation
$349 MILLION
Total amount of venture capital
invested in food tech companies like Hampton Creek
in 2012, up 37% from the year before.