Tim Draper has been in the news for his controversial proposal to split California into six separate states. But he made his reputation as one of Silicon Valley's most successful venture capitalists, with investments in Skype, Overture, Baidu, Tesla, Hotmail, and Twitch.tv, among many others. This week, we talk to Draper about the future of California, the state of the startup economy, how he picks entrepreneurs, and why he's so bullish on Bitcoin.

Plus: Drug dealers on Instagram, the iPhone 6's missing Sapphire screen, and a headband that measures your brainwaves to reduce your stress.