Introduction:
Robert F. Smith is the founder, chairman, and CEO of Vista Equity Partners, a leading private equity firm with over $95 billion in equity capital commitments and a portfolio of over 80 software companies. In 2020, Smith was named one of the Time 100 Most Influential People in the World, and in 2017, he was recognized by Forbes as one of the 100 greatest living business minds.

Background and Education:
Smith earned his BS in chemical engineering from Cornell University and his MBA with honors from Columbia Business School. He is the founding director and president of the Fund II Foundation, dedicated to preserving African American experiences, safeguarding human rights, and promoting education, the environment, and American values.

Leadership and Philanthropy:
Smith serves as chairman of Carnegie Hall and holds leadership positions in various organizations, including the Business Roundtable, Columbia Business School, Cornell Engineering College Council, and the Boys and Girls Club of San Francisco. In 2016, Cornell University honored Smith by naming the Robert Frederick Smith School of Chemical and Biomolecular Engineering after him. Smith founded the Student Freedom Initiative to alleviate student debt for STEM students at HBCUs and co-leads the Southern Communities Initiative, promoting racial equity across six southern communities.

Engagement with Students:
Smith values interactions with students to stay connected with current trends and perspectives. He believes it’s essential to understand the concerns and aspirations of the younger generation, as they are the ones shaping the future. Engaging with students allows him to gain insights into how they utilize technology, engage with communities, and address global challenges.

Key Points:
Smith emphasizes the importance of a young and inquisitive mindset to stay relevant and innovative. He recognizes the value of interacting with current students to understand their perspectives and the issues they face. Smith’s leadership and philanthropic efforts demonstrate his commitment to fostering education, preserving heritage, and promoting racial equity.

Robert F. Smith’s Expectations and Observations:
Robert F. Smith seeks to understand how talented individuals can apply their skills in business to create sustainable economic opportunities for themselves, their families, and their communities. He appreciates the engagement of current students, who have a natural advantage in utilizing technology to communicate, solve problems, and access information from global sources. Smith acknowledges the significant difference between his generation, who were digital immigrants, and the current generation of digital natives, highlighting the advantages they have in creating innovative solutions.

Technology as an Enabler of Change:
Smith sees the digital natives’ proficiency in technology as an opportunity to address challenges and deliver solutions in their businesses and communities. He believes this technological advantage can help change the equilibrium states of communities and create positive impacts.

Importance of Preserving History and Recognizing Milestones:
Martavius Leonard emphasizes the significance of 2023 as the 100th anniversary of the first black student matriculating at Columbia Business School and the 50th anniversary of the VBSA. Robert F. Smith stresses the importance of recognizing and celebrating the journey and contributions of African-Americans and people of color in the United States. He criticizes attempts to eliminate the history of this journey, as seen in states like Florida, highlighting the detrimental effects of such actions.

Understanding History:
Understanding and appreciating the contributions of citizens, including those not classified as such, is essential for economic progress. Learning from past experiences helps accelerate economic growth.

Technology’s Impact:
Computing capacity has liberated ingenuity and the human spirit. Technology has transformed fields like journalism and engineering.

Using Technology for Progress:
Technology should be utilized to expand and express historical experiences. It can be used to teach, train, and learn, enabling evolution and progress.

Understanding Past Pitfalls:
Without understanding the mistreatment and subjugation of groups in the past, people may idealize false realities. This can inhibit long-term economic potential.

Economic Perspective:
Understanding the past helps identify factors that accelerated economic growth. It guides investments in education, STEM training, and other areas that contribute to progress.

Recognizing Contributions:
Recognizing the disproportionate contributions of certain groups to society, humanity, and the planet is crucial. Ignoring these contributions can lead to negative societal and environmental effects.

Analyzing History:
History should be unpacked, analyzed, and understood to identify factors that advanced or inhibited societal progress. Action should be taken to address these factors and ensure a better future.

Institutional Infrastructure Supports Human Advancement:
Robert F. Smith emphasizes the significance of institutional infrastructure in continuously propelling humanity forward. He believes understanding the past is crucial for progress. Smith expresses optimism about the school’s growth, noting the increase in BBSA enrollment from 28 to 150 students.

Graduates’ Role in Advancing the School and Communities:
Smith stresses the graduates’ responsibility to demand and command resources to support the business school’s goals and ideals. He encourages graduates to return to their communities and impart wisdom, knowledge, and organizational capacity, ultimately improving the economic conditions of those communities and America.

Black History in Two Minutes Series:
Smith discusses his involvement as an executive producer of the video series “Black History in Two Minutes.” The series, narrated by Henry Louis Gates, has won five Webby Awards. Smith explains his motivation for pursuing this project, emphasizing the importance of understanding one’s past.

Background and Upbringing:
Robert F. Smith grew up in a segregated community where he learned about African-American history and culture. He was inspired by Golden Legacy comic books, which featured stories of notable African-American figures.

Black History in Two Minutes:
Smith recognized the need for a concise and engaging way to teach Black history to young people. He collaborated with Skip Gates to create Black History in Two Minutes, a series of short videos that highlight key moments and figures in Black history. The series gained popularity and won Webby Awards.

Curriculum Guide and Educational Impact:
Smith developed a curriculum guide to accompany Black History in Two Minutes. The Standard Board, responsible for the SAT, adopted the curriculum guide to teach African-American history. The curriculum guide is available for homeschooling and is used by some school districts.

Technology and Accessibility:
Smith emphasized the role of technology in making Black history more accessible and engaging. The short video format allows viewers to easily watch and learn about Black history on their phones or other devices. Technology enables the creation and distribution of educational content that meets the needs of modern learners.

Pride and Self-Understanding:
Smith believes that understanding one’s history and identity instills a sense of pride and self-worth. Education plays a crucial role in helping individuals understand their heritage and culture. Smith’s own educational experiences, including his time at CBS and Cornell, were influenced by his parents’ roles as educators.

Cluster Classes:
Smith recalled his experience as part of the first cluster class at CBS. Cluster classes at CBS allow students to choose a cluster of courses that align with their interests and career aspirations. Smith contrasted his experience with the more structured and traditional educational approach of previous years.

Challenges of Being the Only African-American Male in a Business School Cluster:
Robert F. Smith was the only African-American male in his business school cluster, which created a unique set of challenges. He was often the only African-American male that his classmates had ever worked with, leading to a dynamic that needed to be reconciled and understood. Smith’s experience in applied research and development prior to business school gave him a different perspective and knowledge base compared to his classmates.

The Learning Experience for Classmates:
Smith’s unique experiences and knowledge led to a learning experience for his classmates, who realized that he was a force to be reckoned with. This interaction changed their perception of African-American males and influenced their future interactions with entrepreneurs or businesses owned by African-Americans.

Smith’s Role as a Representative:
Smith recognized the importance of leaving a positive impression on his classmates, as they would have an impact on African-American entrepreneurs and businesses in the future. He consciously and deliberately worked to change the negative perceptions and decrease the resource disparities faced by African-American communities.

Differences Between Engineering and Business Environments:
Smith’s engineering background had prepared him for a meritocratic environment, where the focus was on finding the right answer rather than who provided it. In contrast, the business environment was more politically driven, with human nature playing a significant role. Smith had to adapt to this new environment by becoming an expert in his field and developing elegant and sustainable solutions.

Robert F. Smith’s BBSA Experience:
BBSA provided a community of exceptional individuals who inspired him and gave him confidence. Exposure to different cultures and experiences through BBSA helped him understand the impact of technology in shaping global culture.

Realizing Columbia’s Potential:
Columbia’s education empowered Smith to follow his dreams and pursue noble endeavors beyond engineering. Smith recognized the potential of Columbia to produce leaders and businesspeople who can influence the world.

Embracing Uncertainty and Following Dreams:
Smith emphasizes the importance of tapping into inner conviction and determination when pursuing dreams, especially during uncertain times.

Job Market Challenges and Economic Realities:
Smith draws parallels between the current job market and the uncertain market of 1994 when he graduated. He encourages creativity, persistence, and facing economic realities in the pursuit of career goals. Smith predicts sustained commodity inflation and persistent wage inflation due to immigration policy issues. He observes a slowdown in some industries and acceleration in others.

Global Economic Uncertainty:
Enterprise software consumption is accelerating due to the rise of productivity tools. Certain regions like Europe, particularly the UK, are facing recessionary business dynamics. The US may experience some impact in consumer-driven industries.

China’s Economic Expansion:
China has lifted 500 million people out of poverty, creating a large consumer base. The Chinese government is focused on transitioning to a consumer-based economy. China’s exports to the US reached $540 billion in 2023, while imports from the US were $190 billion.

Interdependence of Economies:
The US and China’s economies are inextricably linked due to their trade relationship. China’s economic growth is essential for global economic stability.

China’s Reopening and Consumer Base:
China’s reopening after strict COVID-19 border closures has resulted in widespread COVID infections and loss of life. Despite this, China is committed to moving forward and developing its consumer base.

Advice for Students:
Students should pay attention to global economic trends and opportunities. They should consider careers in fields that align with these trends, such as technology, finance, and business.

The Current Economic Landscape:
Robert F. Smith highlights the shift in the economic landscape since 2020, when venture capital funding was abundant and monetary policy was loose. He predicts a sustained tightening of monetary policy by the Federal Reserve, leading to collateral damage in the economy. The challenge for the Fed is controlling commodity inflation while addressing wage inflation, which requires immigration as a solution, but borders are closed.

Navigating the Economic Environment:
Businesses need to adapt to the new economic reality, adjusting their strategies and considering different avenues for growth. The landscape has changed since the pre-pandemic era, requiring nimbleness and a broader perspective to navigate successfully.

Philanthropic Focus on Broadband for HBCUs:
Robert F. Smith’s current philanthropic focus is on increasing broadband access for Historically Black Colleges and Universities (HBCUs). 82% of HBCUs are in broadband deserts, lacking adequate internet connectivity. This issue is a priority for Smith due to its significance in enabling educational opportunities and fostering economic growth in underserved communities.

Economic Roots of Broadband Importance:
Access to broadband is rooted in basic economics and the unique skills and experiences individuals can apply to their communities. Robert F. Smith, with his expertise in software, engineering, and technology, recognizes the transformative power of broadband.

ROI of Software Investments:
Smith’s software companies have an average return on investment (ROI) of 640%, demonstrating the significant impact technology can have on business interactions. Simple solutions like self-service kiosks at McDonald’s, enabled by software and broadband, enhance productivity and reduce labor costs.

Challenges Faced by Minority-Owned Businesses:
In communities like Orangeburg, South Carolina, African-American-owned businesses face challenges due to limited broadband access. Customers’ preference for digital payment methods and younger generations’ reliance on electronic transactions highlight the need for reliable broadband infrastructure. Insufficient broadband connectivity negatively impacts user experience and inhibits business growth.

HBCUs as Broadband Hubs:
Historically Black Colleges and Universities (HBCUs) can serve as hubs for corporate-level internet services, providing consistent and high-speed broadband access. This approach ensures that students, faculty, and the surrounding community have reliable internet connectivity, fostering innovation and economic development.

Addressing the Digital Divide:
The Broadband Enablement Act (BEAD Act) and the Infrastructure Act aim to allocate $65 billion to improve broadband access in underserved communities. However, the challenge lies in effectively distributing these federal funds at the state level to ensure equitable access.

Complexity of Federal Funding Distribution:
The realities of America involve complexities in allocating federal dollars for broadband infrastructure. State-level allocation of funds requires careful planning and coordination to ensure that underserved communities receive the necessary resources.

Historical Context of the GI Bill and Racial Disparities:
The GI Bill, intended to provide benefits to veterans after World War II, was structured in a way that discriminated against African-American soldiers due to opposition from Southern Democrats. Despite the bill’s aim to promote economic participation among veterans, less than 5% of African-American soldiers received access to its benefits, as Southern states manipulated its implementation.

Challenges in Accessing Wealth-Creating Opportunities:
African-Americans faced further barriers in accessing wealth-creating opportunities, such as homeownership and real estate, due to Jim Crow laws and redlining practices that restricted their choices and access to capital.

Current Issues with Digital Equity:
The distribution of federal funds intended for digital enablement and broadband access faces similar challenges, as states have discretion in how these resources are allocated. Many Historically Black Colleges and Universities (HBCUs) lack the planning documents required to receive these funds, hindering their ability to benefit from digital infrastructure improvements.

The Role of Philanthropists and Business Leaders:
Philanthropists and business leaders have a unique opportunity to address systemic issues and promote equitable access to resources. They can use their knowledge and resources to advocate for policies that support marginalized communities and drive positive change.

Individual and Collective Impact:
Individuals can make a difference by mentoring and supporting young people in their communities, helping them develop skills and opportunities for success. Collectively, business leaders can work together to create systemic change and address the root causes of inequality, empowering communities to thrive.

The Importance of Using One’s Highest Capability:
Individuals should strive to use their highest capabilities to serve their communities, aiming for impact at scale rather than limiting themselves to comfortable or easy roles. By maximizing their potential, individuals can create lasting positive change and inspire others to do the same.

Liberating the Human Spirit:
Robert F. Smith emphasizes the significance of aiming for the highest capability and embracing challenges, rather than seeking comfort and instant gratification. He believes that true fulfillment comes from liberating the human spirit.

The Power of Collective Action:
Smith highlights the impact of collective efforts in empowering individuals. By contributing genius and talent to institutions or organizations, individuals can create a meaningful impact and liberate others.

Dealing with Personal Pain for Greater Purpose:
Smith acknowledges that pursuing noble goals may involve personal challenges and pain. However, he emphasizes that the liberation of others through one’s work or genius outweighs the individual pain and brings greater fulfillment.

Early Influences on Advocacy:
Smith shares his personal experiences growing up in Denver, Colorado, where he witnessed inequities in snow removal services between his predominantly black neighborhood and white neighborhoods.

Civic Advocacy and Equity:
Smith’s father, a school principal, recognized the importance of addressing this inequity. He formed a civic association to advocate for paved streets in their neighborhood, ensuring equal access to work and education.

Philanthropy as Identifying and Addressing Equity:
Smith defines philanthropy as identifying and addressing inequities that individuals have the power to influence. He emphasizes the importance of using resources and talents to create positive change.

Using Influence to Demand Change:
Robert F. Smith emphasizes the importance of using one’s influence to bring credibility to pressing issues and demanding change. He believes that by being present in influential venues, he can articulate challenges and advocate for solutions that others may not be able to.

Focusing on Underserved Communities:
Smith highlights the need to address issues affecting underserved communities, such as the lack of internet access for black and brown populations globally. He proposes creating “lighthouse cities” by focusing on HBCUs (Historically Black Colleges and Universities) to attract attention and resources to these communities.

Collaborating with Industry Leaders:
Smith shares how he engages with leaders from major corporations, such as Verizon and AT&T, to address issues faced by his communities. He emphasizes the importance of speaking up and leveraging one’s position to bring about positive change.

Encouraging Graduates to Make a Difference:
Smith encourages graduates to use their influence in various venues to make a difference in their communities. He urges them to be vocal advocates for issues they care about and not remain silent.

Student Loan Crisis:
Ryan Rucker brings up the student loan crisis and the desire among millennials and Gen Zers to contribute to their local communities. He asks who or what institution bears the most responsibility for addressing the student loan crisis.

Student Freedom Initiative:
Robert F. Smith created the Student Freedom Initiative to address the disproportionate student debt burden faced by students, particularly from marginalized communities. This initiative allows students to borrow money for their education and repay it to the initiative, which then recycles the funds to future students. The initiative also provides flexibility for students who experience life interruptions, such as job loss or pursuing a career in public service, allowing them to pause or forgive their debt.

Wealth Creation and Reparations:
Smith emphasizes the need to address historical injustices and the ongoing impact of systemic racism on wealth creation. He highlights the fact that reparations were paid to slave owners rather than the enslaved people themselves, perpetuating economic disparities. Smith advocates for policies and initiatives aimed at reducing student loan debt and promoting wealth-building opportunities for marginalized communities.

Student Debt as a Barrier to Wealth:
Smith recognizes that student loan debt can crush the ability to create wealth, hindering individuals from purchasing homes or investing in securities. He emphasizes the need to alleviate the burden of student debt to enable individuals to pursue their goals and contribute to the economy.

Role of the Younger Generation:
Smith encourages the younger generation to bring energy and commitment to addressing the systemic issues that perpetuate inequality. He believes that the younger generation has the power to create change and make a positive impact on society.

Limitations of Individual Action:
Smith acknowledges that there are limits to what a single individual can do to address systemic issues. He emphasizes the need for collective action and systemic change to achieve meaningful progress.

The Path to Expertise:
Robert F. Smith emphasizes the importance of pursuing expertise in one’s chosen field. He highlights the concept of “10,000 hours plus,” emphasizing the need for unwavering commitment and continuous learning. Smith stresses the need to align expertise with market value, ensuring economic viability and self-assurance in career choices.

Navigating the Cannabis Industry:
A question from Hope Wiseman, founder and CEO of Wiseco, a cannabis company, prompts Smith to share his thoughts on the industry. Smith acknowledges the numerous investment requests he receives in the cannabis industry due to his background and current regulations. He expresses his cautious approach, citing insufficient research on the industry’s long-term viability.

Sustainability and Potential Opportunities:
Smith believes the cannabis industry’s consumptive dynamic may lead to long-term sustainability, as evidenced by the longevity of his cousins’ cannabis business. He anticipates that segments of the marketplace will evolve, with certain areas becoming highly profitable.

Social Impact and Economic Inclusion:
Smith emphasizes the need to liberate young men and women who were incarcerated for cannabis-related offenses, allowing them to participate in society effectively. He expresses hope that the Reform Alliance, where he is involved, can address these issues and promote positive change.

Economic Opportunities and Optimization:
Smith encourages those interested in the cannabis industry to understand economic rent capture, maximizing potential profits. He suggests that opportunities may lie in production or distribution, though further research is necessary to determine specific areas of focus.

Understanding the Cannabis Industry:
Smith emphasizes the need for business students and professionals to understand the structure of the cannabis industry to make informed decisions.

Historical Perspective:
Smith draws parallels between the current cannabis industry and the distribution of distillates in the early 1900s, highlighting the potential for significant growth and consolidation.

Economic Rent and Market Differentiation:
Smith stresses the importance of differentiating products, being a low-cost or high-quality producer, and staying focused on the core business to capture economic rent in the emerging cannabis market.

Product Differentiation and Emerging Markets:
Smith advises business owners to be thoughtful about product differentiation and positioning in the cannabis industry, as it will likely become as accessible as buying alcohol or soda at a local store in the future.

THC and CBD Categories:
Smith briefly mentions the different categories of cannabis products, such as THC and CBD, indicating his knowledge of the industry’s intricacies.

Conclusion and Gratitude:
The interview concludes with Smith expressing his gratitude for the conversation and acknowledging the many unanswered questions due to time constraints.