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Speaker 1: An illegal alien from Guatemala charged with raping a child

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Speaker 1: in Massachusetts. An MS thirteen gang member from Al Salvador

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Speaker 1: accused of murdering a Texas man of Venezuelan charged with

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Speaker 1: filming and selling child pornography in Michigan. These are just

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Speaker 1: some of the heinous migrant criminals caught because of President

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Speaker 1: Donald J. Trump's leadership. I'm Christy nom the United States

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Speaker 1: Secretary of Homeland Security. Under President Trump, attempted illegal border

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Speaker 1: crossings are at the lowest levels ever recorded, and over

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Speaker 1: one hundred thousand illegal aliens have been arrested. If you

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Speaker 1: are here illegally, your next you will be fined nearly

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Speaker 1: one thousand dollars a day, imprisoned, and deported. You will

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Speaker 1: never return. But if you register using our CBP home

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Speaker 1: app and leave now, you could be allowed to return legally.

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Speaker 1: Do what's right. Leave now. Under President Trump, America's laws,

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Speaker 1: border and families will.

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Speaker 2: Be protected sponsored by the United States Department of Homeland Security.

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Speaker 3: So it might take you ten years to figure out

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Speaker 3: what we've done forty five times already, right, and now

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Speaker 3: I bring that intellectual property into the company and say

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Speaker 3: here's how we're going to design this a little differently.

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Speaker 3: Here's how we're going to change your compensation plans for

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Speaker 3: your salespeople to actually incentivize them to give you more

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Speaker 3: stable revenues or or or you know, more visibility into

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Speaker 3: the future revenues and earnings of that business that you

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Speaker 3: may not have figured out or may not figure out

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Speaker 3: because you may not be in an environment a circle

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Speaker 3: of people who have dealt with that before. And so

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Speaker 3: that's why the expertise that we bring is often more

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Speaker 3: valuable than the capital.

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Speaker 4: My graduates from my school being forced bad drop drop

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Speaker 4: might drop bad drop drop.

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Speaker 5: All right, guys, welcome back, e y L. This is

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Speaker 5: a very special episode.

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Speaker 6: Let's call it the Icon Adition.

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Speaker 7: It's also the earliest episode that we never.

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Speaker 3: Oh, I thought it was your this early well, I.

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Speaker 5: Mean once we got the toime slot make it work

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Speaker 5: up twenty four hours so and I did get the memo.

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Speaker 3: Well you didn't get Brandy.

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Speaker 7: Yes, the blue blazer with the reepeace suit.

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Speaker 3: Look, yes, this is the brand. This is the new brand.

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Speaker 3: That's the new brand, This new brand, the Icon addition brand, rebrand.

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Speaker 3: It's called it's called rebrand.

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Speaker 5: So you know this this is it's a it's a

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Speaker 5: very full circle moment for us, because I think probably

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Speaker 5: three maybe four years ago, right, So a lot of

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Speaker 5: this started for us on social media on my Instagram,

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Speaker 5: and I used to write a lot like write like blogs,

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Speaker 5: but I put it on Instagram, so I would write

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Speaker 5: about a whole bunch of different topics. And one of

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Speaker 5: the topics that I wrote about was you. You had

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Speaker 5: an art you had a cover of Forbes and thinking,

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Speaker 5: my yet like three or four years ago, so I

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Speaker 5: put the cover up and then I wrote like a

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Speaker 5: three page, three paragraph description of the whole situation. And

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Speaker 5: then my whole point of it was at that time, specifically,

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Speaker 5: I didn't feel that enough people knew who you were.

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Speaker 3: I remember, I remember that, you remember it. I remember

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Speaker 3: that he said you got to meet this guy.

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Speaker 5: That's great, that's crazy. So so you know, I was

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Speaker 5: real passionate. I kind of like, you know, we put

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Speaker 5: too much emphasis on sports entertainment, and you know, but

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Speaker 5: this is the most wealthiest black person in American history,

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Speaker 5: and a lot of people don't know who is.

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Speaker 7: So long story short, fast forward.

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Speaker 5: Now I think a lot of people do know, especially

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Speaker 5: after the Morehouse situation. We'll talk about that, but still

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Speaker 5: and still and still. The wealthiest Black person in America.

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Speaker 6: Four years ago was true four years later, still.

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Speaker 3: And still.

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Speaker 5: That's an accomplishment and not through sports or entertainment. I

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Speaker 5: think that that's something that's extremely important, especially for young people,

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Speaker 5: to understand that, you know, you can reach levels of

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Speaker 5: success in our culture and our communities and not necessarily

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Speaker 5: do it through sports and entertainment.

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Speaker 2: I think that was one of the pillars that when

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Speaker 2: we started, was like, let's show everybody what they can be,

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Speaker 2: the possibilities in the realms of things, they can be

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Speaker 2: outside of those through things which we knew that we

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Speaker 2: could be great at. But let's show I'm somebody who's

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Speaker 2: doing something that's far beyond that and it's succeeding at

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Speaker 2: a different level as well.

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Speaker 6: So definitely one of the pillars of Ernalisia.

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Speaker 3: Yeah.

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Speaker 5: So Robert Smith, CEO and founder of Vista Equity Fund.

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Speaker 5: He is actually a very prolific person because if you

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Speaker 5: read his bio, it's like forty five different things. He's

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Speaker 5: a chairman of Carnegie Hall. Yes, he's a family man.

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Speaker 5: That's probably the most That's what I should have said.

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Speaker 3: First.

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Speaker 5: He used to he used to do a variety of

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Speaker 5: different things. So he used to be an engineer and

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Speaker 5: then he used to actually work on the corporate side

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Speaker 5: for financing as well. So it's an extremely impressive background

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Speaker 5: because most engineers that that doesn't usually mix. That's like,

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Speaker 5: you know what I'm saying, a weird combinations. Yeah, yeah,

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Speaker 5: Wall Street and engineers, like at the same time, he

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Speaker 5: could build your house and give you finance.

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Speaker 3: It's a little it's a little closer than you think.

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Speaker 5: Unpack some of that, Okay, but this is going to

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Speaker 5: be a very dynamic conversation, something that you know, extremely

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Speaker 5: excited about. And I gotta tell this story. I told

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Speaker 5: this story in La but this is something that I

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Speaker 5: think is very important to tell because the.

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Speaker 7: First time that we met him was in Harlem and uh.

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Speaker 5: Guy Steve Harvey, So he invited us and you were

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Speaker 5: doing something for colon cancer.

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Speaker 3: I believe for African American man cancer.

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Speaker 5: So it was something that you know, I always remembered

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Speaker 5: that moment because it was in the projects and Wagnant

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Speaker 5: Projects in Harlem, and that's where he chose to actually

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Speaker 5: do that and educate and he brought a bunch of

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Speaker 5: celebrities out and that was something that was very impressive

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Speaker 5: to me because it wasn't on Wall Street, it wasn't

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Speaker 5: you know, in Times Square. It was you could tell

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Speaker 5: that it was really for the community, and it was

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Speaker 5: really a community based initiative.

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Speaker 7: And we'll talk about that as well.

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Speaker 5: And when we met him, you know, we obviously are

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Speaker 5: introducing ourselves and the first thing he said to us

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Speaker 5: is I love you guys.

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Speaker 6: So I don't even think we got to say who

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Speaker 6: we were.

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Speaker 3: Yeah, it was like.

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Speaker 5: So his his humility was infectious and still is and

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Speaker 5: you know, his charitable arms is just a million miles long.

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Speaker 5: So I wanted the public to know that because a

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Speaker 5: lot of times people don't know different things that happen.

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Speaker 5: And it's not for you to say that, but it

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Speaker 5: is for us to champion that, and that's that's important.

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Speaker 3: So that's important to me. Yeah, and us telling our

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Speaker 3: own story. So you you play a very important role

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Speaker 3: in part in our community. It's not just the education

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Speaker 3: of our community about our community, but helping us understand

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Speaker 3: how to uplift each other. And you know, our community

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Speaker 3: gets attacked from all sides for multiple reasons, but it

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Speaker 3: has to be it has to come down to our

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Speaker 3: community defending our community. In that context, you guys pay

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Speaker 3: a very important role. And as dynamic is the media

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Speaker 3: is today, your role is even more important. So keep

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Speaker 3: doing what you're doing and keep leaning in hard.

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Speaker 7: Thank you, Thank you.

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Speaker 6: So that was an amazing moment.

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Speaker 7: Thank you for joining us. Okay, we can get to it.

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Speaker 5: So you grew up in Denver, Yeah, in a very

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Speaker 5: diverse neighborhood. Is they call it the Harlem of the West?

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Speaker 3: Is that what they? Yeah? Five points? Yeah, can you

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Speaker 3: talk about that? Yeah? Sure. You know, we as African

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Speaker 3: Americans have had just an interesting journey and you know,

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Speaker 3: in points in time you can kind of frame where

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Speaker 3: different things happened to our community, and you know, things

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Speaker 3: that we did of our community. And the thing I

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Speaker 3: always point to is our not only resilience, but the

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Speaker 3: ability to create and create things new and influence and change.

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Speaker 3: I mean, a lot of American culture is coming out

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Speaker 3: of our experiences, and music, of course, is one of

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Speaker 3: the principal drivers of that. You know, I always say

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Speaker 3: I grew up in a beloved community, and you know,

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Speaker 3: it sounds like you guys grew up in that as well,

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Speaker 3: a place where in my case it was completely segregated community.

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Speaker 3: But you know the needs of the children in that

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Speaker 3: community were being satisfied by the adults in that community.

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Speaker 3: In those needs of love and guidance and instruction and

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Speaker 3: everything from learning how to play at the piano to

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Speaker 3: learning about science and in my case like rocketry and

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Speaker 3: in learning sports. I mean that came from the members

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Speaker 3: of our community. But you also saw the adults in

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Speaker 3: that community defend the community and also try to make

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Speaker 3: more progress. And the Five Points area is the area

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Speaker 3: one of the first areas that was settled by African

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Speaker 3: Americans in Colorado as we moved across this country, and

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Speaker 3: typically it was you know, at the end of you know,

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Speaker 3: the emancipation period. My family, many of them went into Pueblo, Colorado,

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Speaker 3: but they came from you know, Oklahoma or Tennessee, right,

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Speaker 3: and you guys are all familiar with Greenwood, and part

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Speaker 3: of our family tree comes out of there. Some of

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Speaker 3: them actually owned the you know, one of the pool

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Speaker 3: halls and one of the one of the hardware stores.

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Speaker 3: And as that happened in the early nineteen hundreds in

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Speaker 3: that massacre, they moved into Pueblo, Colorado and then from there.

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Speaker 3: So I'm fourth generation from Colorado, and so my family

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Speaker 3: are families of teachers and educators and nurses and doctors.

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Speaker 3: Think about that, right, you know, providing I'm the fourth

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Speaker 3: generation of my family to go to college. Wow, right,

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Speaker 3: There's very few families in America where it's fours generations

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Speaker 3: that have gone to college. And so what I saw

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Speaker 3: growing up was a community that had a lot of

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Speaker 3: wholeness but was again being attacked on any size. But

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Speaker 3: I saw the adults like my parents, my father and

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Speaker 3: my mother, you know, pulled together organizations not just a

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Speaker 3: fan to defend, but to advance. And one of the

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Speaker 3: most important areas of advancement was of course education. You know,

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Speaker 3: being educated it was critically important to success and to

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Speaker 3: creating you know, financial opportunity and to frankly create stability

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Speaker 3: in the community. Both my parents were teachers, elementary school teachers.

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Speaker 3: They both ultimately ended up getting doctorates in education, both

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Speaker 3: in them being principles. But I look also to the

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Speaker 3: work they did civically in our in our in our family.

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Speaker 3: Back then, it snowed a lot in Denver. You know,

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Speaker 3: it's the whole climate change dynamic. I don't think we're

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Speaker 3: addressing in this. We can do another. And so so

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Speaker 3: we as kids always got excited about snow days, right

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Speaker 3: and stay home. Our parents didn't why because at that time,

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Speaker 3: our neighborhood wouldn't get the snowplow to come through it

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Speaker 3: for three or four days after it's snow. Now you

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Speaker 3: think about it, where your parents are trying to go

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Speaker 3: to work, but they can't even get down the street.

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Speaker 3: They can't get to the bus stop, they can't. You know,

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Speaker 3: for those of us who had cars, you couldn't even

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Speaker 3: drive because it was just snowed in. So I saw

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Speaker 3: my father lead an effort and it created a civic

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Speaker 3: association and they literally went and campaigned and lobbied so

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Speaker 3: that we at least got snowplows the same day as

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Speaker 3: other communities in you know, in our city. I remember,

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Speaker 3: and then they put one stripe. They'd come down and

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Speaker 3: do one stripe down the main street, and we still

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Speaker 3: had to get to the main street and you would

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Speaker 3: get out and then okay, great, we got on a

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Speaker 3: bus to go across town because they were desegregating schools

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Speaker 3: using bussing, and we'll talk about that in a minute.

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Speaker 3: And you'd go to the neighborhood where the better resource

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Speaker 3: school inner streets were clean and dry, snowpiled up on

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Speaker 3: the side are gone, and are still had just one

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Speaker 3: strip down the center. So when you talk about economic disadvantage,

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Speaker 3: systemic economic oppression, these are the things that you don't

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Speaker 3: think about on the one hand, but if your community

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Speaker 3: can't get to work, it has a major impact. And

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Speaker 3: we had a lot of wage workers, so it wasn't like, oh,

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Speaker 3: everybody was on salary. You were wage workers. If you

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Speaker 3: didn't show up that day, you didn't get paid that day.

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Speaker 3: If you didn't get paid that day, you were now

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Speaker 3: trying to figure out how to you know, make groceries

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Speaker 3: and pay pay you know, ensure that your kids ate

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Speaker 3: or clothed and those sort of things. And I saw

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Speaker 3: the community say this, we're that's not going to stand

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Speaker 3: right and make take a stand of that. I saw

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Speaker 3: my father also pull together resources so our local y MCA,

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Speaker 3: our kids had a chance to go to summer camps

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Speaker 3: and to go into the mountains, and we raised money

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Speaker 3: to build a gym so we could actually have a place,

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Speaker 3: you know, where our kids could actually you know, recreate

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Speaker 3: in peace and also with facilities. But it was them

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Speaker 3: taking that on and making a community project in us.

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Speaker 3: You know, going out and selling candy and all that,

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Speaker 3: you know, to to ensure that that happened. And it

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Speaker 3: was i'll call it a spirit of self determination that

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Speaker 3: very much was part of the fabric of that community.

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Speaker 3: And you saw people looking out for the kids. That

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Speaker 3: wasn't perfect, like everything, you know, nothing is perfect, but

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Speaker 3: you felt loved, you felt cared for it, you felt protected,

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Speaker 3: and you saw adults coming together for the betterment of

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Speaker 3: that community, not episodically when something bad happened, but on

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Speaker 3: a regular basis. And that's what I remember, and those

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Speaker 3: are the things that really inform how I like to

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Speaker 3: live my life. And I have an opportunit do it

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Speaker 3: a little bigger platform than growing up there. But it's

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Speaker 3: also i'll call it rich with community life. You know,

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Speaker 3: the music, the you know, we'd have the Friday night

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Speaker 3: fish fries and you guys too young members. We used

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Speaker 3: to do these people take slide pictures on slides and

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Speaker 3: slide projector you guys left.

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Speaker 2: You don't know, I know, I know, I feel like

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Speaker 2: that happened in elementary school slide projected.

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Speaker 6: Yeah.

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Speaker 3: Well yeah, but but but people would go to people's

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Speaker 3: homes and you know, bring food and pot lucks and

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Speaker 3: watch slide projectors of people's what they did that summer,

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Speaker 3: and and then of course play cards and you know,

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Speaker 3: you know, drink whiskey and soda, pop it all but

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Speaker 3: and play music. And I mean that's it was very vibrant.

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Speaker 3: And I just remember that. And that wasn't like, like

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Speaker 3: I said, episodic. That was kind of just the way

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Speaker 3: we lived. So it was actually it was actually pretty cool.

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Speaker 2: It sounds like I mean, just having the foundation set,

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Speaker 2: like you said, most of us don't come from, you know,

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Speaker 2: families that went to college. You had two educators in

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Speaker 2: the home. You spoke about that, the impact your dad had.

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Speaker 2: I remember hearing the stories about the impact that your

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Speaker 2: mom writing the checks to the United Negro College Fund

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Speaker 2: and what that profound impact had on you.

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Speaker 6: I want to talk about that a little bit.

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Speaker 2: And Bus thirteen, like you kind of alluded to it,

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Speaker 2: but the importance of that and how you know, having

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Speaker 2: one bus in the community and the impact that that

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Speaker 2: had on you, and also the future of some of

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Speaker 2: the people that were on that bus and how you

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Speaker 2: know they excelled as opposed to the people who didn't

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Speaker 2: make it.

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Speaker 6: Can you tell about that?

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Speaker 3: Yeah, And it's you know again, it's kind of the

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Speaker 3: great segue into you know, the importance of resources in

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Speaker 3: a community and the importance of guidance in that context.

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Speaker 3: You know, we were at a time it was a

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Speaker 3: dawning of uh call it the civil rights movement in action.

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Speaker 3: So you know, there were there were you know, we

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Speaker 3: spilled a lot of blood, and a lot of our

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Speaker 3: blood was spilled in the streets. And one of the

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Speaker 3: things we got out of it was Brown versus Board

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Speaker 3: of Education. And now I was like, okay, now we're

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Speaker 3: going to desegregate schools. How are you gonna do that

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Speaker 3: when everybody lives in segregating neighborhoods. So it was in

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Speaker 3: Denver many other places. It was a thing called bussing, right,

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Speaker 3: they called it force bussing, but it was bussing. And

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Speaker 3: so now you know, the cities took here. They bought

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Speaker 3: a bunch of busses, started figuring out, Okay, who from

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Speaker 3: this community, who goes to this local school? My dad

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Speaker 3: was a principal at the local school, and now you're

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Speaker 3: going to rebust across town to another school. All right, Well,

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Speaker 3: right before this was to happen, some racists didn't think

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Speaker 3: This was a good idea and burned like a third

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Speaker 3: of the buses.

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Speaker 3: Okay, so now all of a sudden, fewer people are

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Speaker 3: going to get busted, just as real nature. So rather

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Speaker 3: than my whole neighborhood getting bussed, only one bus came

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Speaker 3: to my neighborhood, and so just so happened to hit

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Speaker 3: on a corner down the block for me. And so

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Speaker 3: the kids in that four block radius were the first

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Speaker 3: ones to go to desegregated schools. Okay, and I got

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Speaker 3: talked about better resource schools. And when I look at

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Speaker 3: the kids who were on that bus versus the kids

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Speaker 3: who were two blocks away, okay, when it was bus

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Speaker 3: number thirteen, like I say, ironically right, it was those

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Speaker 3: kids have a higher percentage of professionals went to Ivy

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Speaker 3: League schools became you know, doctors and professors and scientists

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Speaker 3: versus a blocks of just a few blocks away. How

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Speaker 3: much down there were some professionals that came out of there,

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Speaker 3: but a much lower percentage. I mean, it is a

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Speaker 3: stark contrast. And it's because that K in that case

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Speaker 3: K through six education was so different than what you

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Speaker 3: saw in our local neighborhoods and because they were still

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Speaker 3: you know, separate, equal, but it wasn't you see, to

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Speaker 3: mean the teaching, the capacity, the care, you know. And

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Speaker 3: we had some phenomenal teachers in our community, and some

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Speaker 3: of the teachers through that also ended up in those

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Speaker 3: better resource schools because it was that as well. And

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Speaker 3: I remember Missus Olivier third grade teacher, African American woman

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Speaker 3: and you could only after American teacher in that school,

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Speaker 3: but she looked at for every kid of color in

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Speaker 3: that school. And I'm telling you that's one of the

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Speaker 3: most important things that made a huge difference in our

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Speaker 3: educational upbringing and gave us a chance to launch and

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Speaker 3: go into the high schools and go into the colleges

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Speaker 3: that we ended up in because we had great fundamental

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Speaker 3: education K through six.

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Speaker 5: So I want to get into how you've actually built

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Speaker 5: what you have acquired, but I want to start with

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Speaker 5: your engineering career. So you was at Craft and you

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Speaker 5: were at Goodyear as an engineer, yeah, and then you

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Speaker 5: transitioned to go them in sex.

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Speaker 7: So can you talk about that, like how did that?

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Speaker 3: How did you go.

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Speaker 5: From being an engineer from Craft and Goodman and Goodyear

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Speaker 5: to being an investment banking world of Goldman Sex.

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Speaker 3: Yeah, and a point to the importance of media. Okay,

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Speaker 3: So I will get into later kind of what this

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Speaker 3: is and how the engineering informs all that we do

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Speaker 3: and has created the enterprise that it is that can

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Speaker 3: grow at scale sustainably because of the engineering background, mindset

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00:20:31,359 --> 00:20:36,600
Speaker 3: and design points. But the transition came from media. Okay.

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Speaker 3: So at the time, I was an engineer working in

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Speaker 3: a plant in upstate New York for Goodyear Time Rubber Facility,

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Speaker 3: and I had a collection of friends and we would

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Speaker 3: get together. We'd read I mean, like, okay, we weren't

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Speaker 3: just watching football because you know, we had a book club,

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Speaker 3: but to African Americans, you know, we had a book

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Speaker 3: club back then, reading different things. And one of the

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Speaker 3: guys brought to kind of the book club a Black

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Speaker 3: enterprise magazine and on that were a bunch of blacks

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Speaker 3: on Wall Street the first time, like, well what is

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Speaker 3: Wall Street? Because I was I had no idea what

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Speaker 3: Wall Street was. And they had all these guys on

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Speaker 3: Wall Street and it had you know guy you know,

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Speaker 3: John Newton Dahl, this guy you know, Ray McGuire and

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Speaker 3: Stan O'Neill and George Vanantum and and I'm like, well,

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Speaker 3: who are these cats, and what's this Wall Street all about?

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Speaker 3: And why are they undercovers this magazine? Right? What's that?

395
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Speaker 3: And so we start reading and understanding and talking about it.

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Speaker 3: I mean that's importance of community too, where you can

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Speaker 3: kind of bounce some ideas off and what's this all about?

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Speaker 3: And started really understanding that there was a whole different

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Speaker 3: world outside of engineering, which is what I thought the

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Speaker 3: world was, right, And so I started thinking about, well,

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Speaker 3: maybe I should go to graduate school. So as I

402
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Speaker 3: started looking at different you know, ELM Men's. Business school

403
00:22:00,880 --> 00:22:04,639
Speaker 3: looked interesting, law school looked interesting. Uh, And I decided, well,

404
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Speaker 3: I'm going to go to Columbia. I went to Cornell

405
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Speaker 3: undergrad and I started looking around and decided Columbia it

406
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Speaker 3: was a good place for me to go. It was

407
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Speaker 3: fortunate to get in.

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Speaker 2: Uh.

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Speaker 3: And outside of the good fortune, I did well my

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Speaker 3: first year, so I was top student in my class.

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Speaker 3: I had to come back for an award right for after,

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Speaker 3: you know, business schools two years. So after the first year,

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Speaker 3: had come back with this award during the summer, you know,

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Speaker 3: the summer graduation. Uh. So I come back and lo

415
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Speaker 3: and behold one of those guys from the magazine is

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Speaker 3: actually the keynote speaker for the summer graduates God the

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Speaker 3: named of John Newtondhal. And you know, they go and

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Speaker 3: give my background and all that sort of stuff, and

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Speaker 3: you know, my award, I get that at the end

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Speaker 3: of the thing. You know, he gives his speech and

421
00:22:47,760 --> 00:22:49,840
Speaker 3: pulls me and I says, hey, hey, hey. He said,

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Speaker 3: you have an interesting background engineer. All. So, he said,

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Speaker 3: have you ever thought about a career in investment banking.

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Speaker 3: I'm like, well, I said, you know, there's a bunch

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Speaker 3: of investment bankers in my class. I don't like any

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Speaker 3: of them. And he says, well, he looks at me.

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Speaker 3: He's like, well why not. I said, well, they think

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Speaker 3: they know everything, and they're pretty arrogant. I said, I'm

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Speaker 3: an engineer. We do know everything. It bothers us, right,

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Speaker 3: And I thought I was a jokester then, but and

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Speaker 3: I said, in all honesty, I said, I don't really

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Speaker 3: know what y'all do. And he said, well, why don't

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Speaker 3: you come have lunch with me? I said sure. And

434
00:23:24,960 --> 00:23:27,760
Speaker 3: being in Columbia, one of the advantages of being at

435
00:23:27,800 --> 00:23:30,880
Speaker 3: Columbia business schools, you're you know, a subway right away

436
00:23:30,880 --> 00:23:34,040
Speaker 3: from Wall Street. So I go down and sit with John,

437
00:23:34,040 --> 00:23:37,119
Speaker 3: and I'm expecting, you know, half hour forty five minutes.

438
00:23:37,119 --> 00:23:39,399
Speaker 3: This guy's aren't gonna give me any time. And we

439
00:23:39,600 --> 00:23:42,360
Speaker 3: just start talking. He's asking me my experiences. I'm telling

440
00:23:42,359 --> 00:23:44,480
Speaker 3: them all the stuff I was inventing and doing and

441
00:23:44,520 --> 00:23:47,520
Speaker 3: all that sort of stuff, and I guess he thought

442
00:23:47,520 --> 00:23:51,200
Speaker 3: I was entertaining. But at the end of it, he said,

443
00:23:51,240 --> 00:23:52,960
Speaker 3: let me introduce you some people. And he picks up

444
00:23:53,000 --> 00:23:56,800
Speaker 3: the phone and he calls, you know, Ray McGuire. He

445
00:23:56,880 --> 00:23:59,800
Speaker 3: picks up and he calls, you know, George van Anson,

446
00:24:00,040 --> 00:24:02,760
Speaker 3: picks up the phony calls you know. Stand O'Neil's like, hey,

447
00:24:03,040 --> 00:24:05,600
Speaker 3: there's a guy in my office, really interesting background. You

448
00:24:05,600 --> 00:24:07,600
Speaker 3: guys ought to interview him and talk to him about

449
00:24:07,600 --> 00:24:11,840
Speaker 3: a career investment banking and so, you know, as a

450
00:24:11,880 --> 00:24:15,879
Speaker 3: scientist with what you do is you analyze data and

451
00:24:16,040 --> 00:24:18,920
Speaker 3: try to come to some conclusion and then act upon

452
00:24:18,960 --> 00:24:24,000
Speaker 3: it was with some activity. So now I'm entering my

453
00:24:24,840 --> 00:24:27,920
Speaker 3: fall of my second year business school, and I'm trying

454
00:24:27,960 --> 00:24:31,000
Speaker 3: to understand what this investment banking thing is all about. Sure,

455
00:24:31,000 --> 00:24:33,280
Speaker 3: I'm taken classes of finance and marketing and doing well,

456
00:24:33,320 --> 00:24:36,840
Speaker 3: obviously you know statistics and accounting, but I didn't understand

457
00:24:36,840 --> 00:24:40,960
Speaker 3: the industry and the business of it. And these brothers

458
00:24:41,640 --> 00:24:46,600
Speaker 3: all brought me in and had conversations with me and

459
00:24:46,720 --> 00:24:49,720
Speaker 3: introduced me throughout the organization. I ended up having over

460
00:24:49,760 --> 00:24:55,440
Speaker 3: one hundred interviews with people on Wall Street, Goldman, Sachs,

461
00:24:55,720 --> 00:24:57,639
Speaker 3: you know, Morgan Stanley, you know, it was called a

462
00:24:57,640 --> 00:25:01,280
Speaker 3: place called Banker's Trust the time JP Morgan. And through that,

463
00:25:02,000 --> 00:25:06,399
Speaker 3: I said, Wow, the business that I really like is

464
00:25:06,440 --> 00:25:11,639
Speaker 3: mergers and acquisitions, right, Okay, because if you think about

465
00:25:11,840 --> 00:25:16,040
Speaker 3: M and A, it's board level discussions, it's CEO level

466
00:25:16,040 --> 00:25:19,840
Speaker 3: cut discussions, and it's how assets move across this planet. Right.

467
00:25:21,240 --> 00:25:24,000
Speaker 3: So I said, well, that looks really interesting to me.

468
00:25:24,720 --> 00:25:28,320
Speaker 3: And this is another one of those life lessons. This

469
00:25:28,400 --> 00:25:32,400
Speaker 3: is something you don't learn in school. It's an apprenticeship business.

470
00:25:34,000 --> 00:25:35,840
Speaker 3: Someone has to decide that they're going to make you

471
00:25:35,840 --> 00:25:39,879
Speaker 3: an apprentice in the M and A business and teach

472
00:25:40,200 --> 00:25:43,160
Speaker 3: and train you how to do this. You can read

473
00:25:43,160 --> 00:25:44,639
Speaker 3: all the books in the world, but you actually have

474
00:25:44,680 --> 00:25:48,639
Speaker 3: to practice it, okay. You actually have to develop a

475
00:25:48,720 --> 00:25:52,080
Speaker 3: set of skills that have to be honed through a

476
00:25:52,119 --> 00:25:56,040
Speaker 3: set of interactions that create fact patterns that you can

477
00:25:56,080 --> 00:25:59,720
Speaker 3: rely on to make judgments going forward. And so from

478
00:25:59,800 --> 00:26:02,919
Speaker 3: that I said, at the time, they are only really

479
00:26:04,000 --> 00:26:08,040
Speaker 3: maybe four principal M and A shops, Goldman being one

480
00:26:09,080 --> 00:26:11,760
Speaker 3: that I thought actually that you can get better training

481
00:26:11,840 --> 00:26:16,200
Speaker 3: there than anywhere else. And Goldman at the time had

482
00:26:16,280 --> 00:26:20,119
Speaker 3: really prided itself on this teamwork dynamic, and some of

483
00:26:20,160 --> 00:26:24,159
Speaker 3: these other firms at the time, if you worked for

484
00:26:24,240 --> 00:26:26,520
Speaker 3: a partner in M and A, that's the partner you

485
00:26:26,600 --> 00:26:29,080
Speaker 3: worked for for the next four or five six years.

486
00:26:29,880 --> 00:26:34,040
Speaker 3: And if you were favored, then you do great, and

487
00:26:34,080 --> 00:26:38,679
Speaker 3: if you were not, it'd be tough sledding, right. And

488
00:26:38,720 --> 00:26:40,960
Speaker 3: you look at those departments, there are very few people

489
00:26:40,960 --> 00:26:46,640
Speaker 3: who look like y'all and me and say, well will

490
00:26:46,680 --> 00:26:50,440
Speaker 3: I get that experience? And while Goldman was not perfect,

491
00:26:50,640 --> 00:26:55,160
Speaker 3: like no place is, you would work for multiple partners,

492
00:26:55,560 --> 00:26:57,480
Speaker 3: so you work on a deal with this partner, and

493
00:26:57,520 --> 00:26:59,479
Speaker 3: a deal and this partner at the same time, so

494
00:27:00,000 --> 00:27:01,720
Speaker 3: it was you'd have six seven different partners or vice

495
00:27:01,800 --> 00:27:04,479
Speaker 3: presidents that you worked for. And so there you had

496
00:27:04,520 --> 00:27:06,679
Speaker 3: a chance what I call build your fat pattern of

497
00:27:06,760 --> 00:27:10,840
Speaker 3: experiences through the lens of different practitioners. And I thought

498
00:27:10,960 --> 00:27:16,080
Speaker 3: that would actually enhance my ability to be expert at

499
00:27:16,080 --> 00:27:18,320
Speaker 3: that craft. So that's why I went to Golden Sachs.

500
00:27:18,640 --> 00:27:21,280
Speaker 2: So in M and A, I want to talk about

501
00:27:21,280 --> 00:27:23,439
Speaker 2: that because at that time, I mean, you have the

502
00:27:23,480 --> 00:27:27,439
Speaker 2: background chemical engineering, you've been creating, you've been inventing. What

503
00:27:27,560 --> 00:27:29,280
Speaker 2: is that like now, Because at the time, if I

504
00:27:29,320 --> 00:27:31,760
Speaker 2: read it correctly, you're the other guy that's focusing solely

505
00:27:31,800 --> 00:27:34,840
Speaker 2: on technology because you can see it, this is going

506
00:27:34,920 --> 00:27:36,840
Speaker 2: to be the thing that changes the future. So you're

507
00:27:36,880 --> 00:27:40,280
Speaker 2: seeing Apple, you're seeing Microsoft, and you're seeing eBay and

508
00:27:40,640 --> 00:27:43,199
Speaker 2: all these things. Before they started, what was that like

509
00:27:43,280 --> 00:27:45,960
Speaker 2: trying to explain to the investment the banking side, like,

510
00:27:46,000 --> 00:27:49,080
Speaker 2: hey guys, this is my expertise.

511
00:27:49,240 --> 00:27:51,000
Speaker 6: You guys should trust me on this. This is going

512
00:27:51,080 --> 00:27:51,480
Speaker 6: to be the thing.

513
00:27:51,560 --> 00:27:57,639
Speaker 3: So that's interesting. So when I started, you know, I

514
00:27:57,720 --> 00:28:00,159
Speaker 3: was in New York and I had I've had I

515
00:28:00,160 --> 00:28:03,480
Speaker 3: had baby food businesses, I had paper companies, all these

516
00:28:03,480 --> 00:28:08,640
Speaker 3: sort of things, and it's the dawning of introducing technology

517
00:28:08,760 --> 00:28:12,239
Speaker 3: into the industrial environment. Okay, so you guys, you know

518
00:28:12,520 --> 00:28:14,640
Speaker 3: back in the day, and let's let's unpack this. That's

519
00:28:14,640 --> 00:28:17,760
Speaker 3: actually pretty interesting. Back in the when I was at

520
00:28:17,840 --> 00:28:24,720
Speaker 3: Goodyear or craft. Very few companies then were actually you

521
00:28:24,720 --> 00:28:27,199
Speaker 3: know in well, they wanted to, but they didn't necessarily

522
00:28:27,240 --> 00:28:32,920
Speaker 3: have the investment resources to implement computing capacity into the environment.

523
00:28:33,400 --> 00:28:37,760
Speaker 3: So you guys are digital natives, Okay, my generation are

524
00:28:37,800 --> 00:28:40,400
Speaker 3: digital immigrants. And so at the time, if you wanted

525
00:28:40,440 --> 00:28:43,520
Speaker 3: to use the computer, it was like one thousand dollars

526
00:28:43,600 --> 00:28:45,400
Speaker 3: for a half hour of computer use. You'd have to

527
00:28:45,440 --> 00:28:48,000
Speaker 3: sign up for it, and you could go use it,

528
00:28:48,000 --> 00:28:49,800
Speaker 3: and it'd be somebody standing behind you waiting for your

529
00:28:49,840 --> 00:28:51,640
Speaker 3: thirty minutes to come up, and then they'd come on

530
00:28:51,960 --> 00:28:54,200
Speaker 3: and you have to go sign up again to use

531
00:28:54,200 --> 00:28:57,320
Speaker 3: the computer because it was that scarce of a resource.

532
00:28:58,120 --> 00:29:00,280
Speaker 3: And so one of my early projects, for instance, I

533
00:29:00,400 --> 00:29:05,280
Speaker 3: was working uh and running a plant in in you know,

534
00:29:05,440 --> 00:29:09,640
Speaker 3: Niagara Falls, New York, and I was responsible for implementing

535
00:29:09,680 --> 00:29:14,280
Speaker 3: some computer systems and computer control systems. So the way

536
00:29:14,680 --> 00:29:18,400
Speaker 3: systems work before that were analog and there were individuals.

537
00:29:18,400 --> 00:29:20,200
Speaker 3: So what would happen is, you know, you're going to

538
00:29:20,280 --> 00:29:22,480
Speaker 3: run a process and you're going to charge the reactor

539
00:29:22,720 --> 00:29:25,360
Speaker 3: with you know, with the reagents, with the catalyst, and

540
00:29:25,400 --> 00:29:27,520
Speaker 3: you kind of you know, put the steam on and

541
00:29:27,560 --> 00:29:31,040
Speaker 3: stir it and then the reaction would kind of take off, right,

542
00:29:31,280 --> 00:29:33,640
Speaker 3: and depending upon the rates of change and all that,

543
00:29:33,720 --> 00:29:35,360
Speaker 3: you sometimes you need to cool it or heat it up.

544
00:29:35,360 --> 00:29:37,520
Speaker 3: So there'd be what I call there would be an

545
00:29:37,800 --> 00:29:42,480
Speaker 3: you know, a an episodic observation of the event, and

546
00:29:42,520 --> 00:29:46,360
Speaker 3: then you'd have an episodic you know, intervention. So you

547
00:29:46,560 --> 00:29:50,360
Speaker 3: change something and it would change the control dynamic. And

548
00:29:50,520 --> 00:29:53,040
Speaker 3: like I said, if you weren't the control or operator,

549
00:29:53,120 --> 00:29:55,720
Speaker 3: wasn't at lunch or you know, talking about football or

550
00:29:55,760 --> 00:30:00,560
Speaker 3: whatever it is, every dynamic was different because it wasn't

551
00:30:00,920 --> 00:30:04,800
Speaker 3: consistent because you had that human engagement as the actual

552
00:30:04,840 --> 00:30:07,480
Speaker 3: control system. Well, if you put a computer system in,

553
00:30:09,240 --> 00:30:14,800
Speaker 3: it's measuring those observations thousands of times a second, and

554
00:30:14,840 --> 00:30:17,440
Speaker 3: you could also then put in systems of control where

555
00:30:17,440 --> 00:30:21,239
Speaker 3: you could have interventions thousands of times a second. So

556
00:30:21,280 --> 00:30:24,200
Speaker 3: you went from control dynamics that look like this to

557
00:30:24,320 --> 00:30:28,800
Speaker 3: control dynamics that look like this. And for mathematicians, everything

558
00:30:28,840 --> 00:30:33,280
Speaker 3: under the curve is waste. Right, So now you look

559
00:30:33,280 --> 00:30:36,240
Speaker 3: at that and like so and first implementation I did

560
00:30:36,320 --> 00:30:38,360
Speaker 3: of that of the plant, increase the productivity of that

561
00:30:38,400 --> 00:30:42,160
Speaker 3: plant by twenty six percent. Okay, that's a whole shift

562
00:30:42,400 --> 00:30:46,800
Speaker 3: a day by putting a control system. So now you

563
00:30:46,920 --> 00:30:52,920
Speaker 3: understand the power and the productivity that software actually brings

564
00:30:53,200 --> 00:30:55,800
Speaker 3: to a plant. Now take that and put it in

565
00:30:55,840 --> 00:31:01,479
Speaker 3: an office managing an insurance claim. You're an insurance adjuster.

566
00:31:01,680 --> 00:31:03,800
Speaker 3: You know, the car is wrecked. Back in the day,

567
00:31:03,800 --> 00:31:05,480
Speaker 3: you'd have to go to a place and they kind

568
00:31:05,480 --> 00:31:07,720
Speaker 3: of take pictures of it and write it up, put

569
00:31:07,720 --> 00:31:10,920
Speaker 3: it in an envelope, send it to somebody in the

570
00:31:10,920 --> 00:31:13,800
Speaker 3: home office, and maybe you were on vacation, sit on

571
00:31:13,840 --> 00:31:16,160
Speaker 3: that desk for a week, maybe got to the right person,

572
00:31:16,240 --> 00:31:17,600
Speaker 3: and then you say, well, you know, you didn't do

573
00:31:17,680 --> 00:31:18,960
Speaker 3: some right, so you got to send it back to

574
00:31:19,040 --> 00:31:22,240
Speaker 3: you and ask more questions. And that happened back and forth,

575
00:31:22,280 --> 00:31:24,160
Speaker 3: and from that you to justin and say, okay, here's

576
00:31:24,560 --> 00:31:27,120
Speaker 3: here's how much the you know, approximate value is. You

577
00:31:27,160 --> 00:31:28,960
Speaker 3: send me a check. I get mad because it wasn't

578
00:31:29,080 --> 00:31:32,080
Speaker 3: enough to fix the car. And that was the whole process.

579
00:31:32,080 --> 00:31:34,520
Speaker 3: How things now introduce a computer in that environment?

580
00:31:35,800 --> 00:31:38,920
Speaker 2: Ern Your leisure is supported by First Republic Bank. Have

581
00:31:39,000 --> 00:31:41,360
Speaker 2: you ever experienced a relationship with a banker who was

582
00:31:41,400 --> 00:31:45,080
Speaker 2: available to answer all your questions even by phone or email?

583
00:31:45,520 --> 00:31:48,840
Speaker 2: Doesn't exist? You say it, does it First Republic. At

584
00:31:48,880 --> 00:31:51,720
Speaker 2: First Republic, everyone gets a personal banker who's ready to

585
00:31:51,760 --> 00:31:55,040
Speaker 2: sit down and answer your questions, no matter how complex.

586
00:31:55,640 --> 00:31:58,440
Speaker 2: And did you know that First republic commitment to extraordinary

587
00:31:58,480 --> 00:32:02,360
Speaker 2: service extends beyond its line. First Republic is committed to

588
00:32:02,400 --> 00:32:06,200
Speaker 2: strengthening the communities it serves through meaningful partnerships with innovative

589
00:32:06,240 --> 00:32:10,960
Speaker 2: nonprofit organizations. To learn more, visit First Republic dot com.

590
00:32:11,080 --> 00:32:15,920
Speaker 2: That's First Republic dot Com member FDIC Equal Housing Lender.

591
00:32:16,680 --> 00:32:20,720
Speaker 3: Where through the adjustment process in some respects you have

592
00:32:20,720 --> 00:32:22,960
Speaker 3: an adjuster who's actually looking at it and filling it out.

593
00:32:22,960 --> 00:32:24,600
Speaker 3: But now you can actually take your phone and take

594
00:32:24,600 --> 00:32:27,000
Speaker 3: a picture of it. Based on the make of the car,

595
00:32:27,680 --> 00:32:29,760
Speaker 3: estimate exactly how many hours it's going to take, what's

596
00:32:29,760 --> 00:32:31,960
Speaker 3: the bill of materials, what's the cost, and so the

597
00:32:32,040 --> 00:32:36,880
Speaker 3: efficiency from an insurance production like this and now to that. Okay,

598
00:32:37,080 --> 00:32:40,280
Speaker 3: that hit every single industry. That's what we're doing right now.

599
00:32:41,240 --> 00:32:45,320
Speaker 3: So software is now the most productive tool introducing our

600
00:32:45,360 --> 00:32:47,400
Speaker 3: business environment last fifty years on like we will be

601
00:32:47,440 --> 00:32:50,160
Speaker 3: for the next fifty. So now I go to Goldman Sachs.

602
00:32:50,560 --> 00:32:53,120
Speaker 3: They're now in the process of you know, we're using

603
00:32:53,240 --> 00:32:56,200
Speaker 3: different spreadsheet programs. You guys don't remember because you've used

604
00:32:56,240 --> 00:32:59,440
Speaker 3: Excel all your life, haven't you. You've been paying Microsoft

605
00:33:00,160 --> 00:33:02,720
Speaker 3: thirty years for a project for a product that you

606
00:33:02,800 --> 00:33:04,960
Speaker 3: use back in the day. There are five or six others,

607
00:33:04,960 --> 00:33:08,200
Speaker 3: the one called Lotus, there's Multiplan, there's Physical Asterisk, a

608
00:33:08,240 --> 00:33:11,040
Speaker 3: bunch of different and so there's always a fight ask

609
00:33:11,080 --> 00:33:13,160
Speaker 3: to which one of these programs you would use. But

610
00:33:13,240 --> 00:33:16,160
Speaker 3: once you consolidated on one, the efficiency of not having

611
00:33:16,240 --> 00:33:18,640
Speaker 3: to move you know, my project which I did in

612
00:33:18,640 --> 00:33:21,400
Speaker 3: Lotus to yours as didn't Excel because we're working on

613
00:33:21,440 --> 00:33:24,360
Speaker 3: a team together. That's another efficiency that came out of

614
00:33:24,400 --> 00:33:29,520
Speaker 3: the system by consolidating. So I'm now at Goldman, I'm

615
00:33:29,520 --> 00:33:31,520
Speaker 3: now working on a bunch of different M and A

616
00:33:31,680 --> 00:33:34,840
Speaker 3: deals and started to see what I'll call the recognition

617
00:33:34,960 --> 00:33:41,160
Speaker 3: of efficiency that can come from consolidation on platforms. One

618
00:33:41,160 --> 00:33:42,920
Speaker 3: of what we would compare these to put these things

619
00:33:42,920 --> 00:33:45,760
Speaker 3: together called common stock comparisons, where you get up in

620
00:33:45,800 --> 00:33:49,240
Speaker 3: the morning and you'd have to put together forty five

621
00:33:49,320 --> 00:33:52,880
Speaker 3: different stock comparisons for work that you're doing, and you're

622
00:33:52,920 --> 00:33:57,240
Speaker 3: sitting across the aisle working on or you know, down

623
00:33:57,280 --> 00:33:59,800
Speaker 3: the hall working on something similar and you're doing exact

624
00:33:59,800 --> 00:34:01,600
Speaker 3: same work he's doing. You just don't know that you're

625
00:34:01,640 --> 00:34:05,040
Speaker 3: doing it, and you're both see all the inefficiency. Whereas now,

626
00:34:05,080 --> 00:34:06,959
Speaker 3: once you have done that, how do I share it

627
00:34:06,960 --> 00:34:08,799
Speaker 3: with you? And how do you you know you can

628
00:34:08,840 --> 00:34:09,920
Speaker 3: do this part in you that but it makes it

629
00:34:10,000 --> 00:34:13,240
Speaker 3: much more efficient. Well, computer systems do that. So now

630
00:34:13,680 --> 00:34:16,799
Speaker 3: we're getting more efficient and how we're processing deals and

631
00:34:16,920 --> 00:34:23,600
Speaker 3: applications in all industries and so now it's the dawning

632
00:34:23,760 --> 00:34:28,919
Speaker 3: of what is technology being mainstam stay in real So

633
00:34:29,120 --> 00:34:31,719
Speaker 3: the head of our department calls and he's like, I

634
00:34:31,719 --> 00:34:35,120
Speaker 3: think I want to start a tech group. He's like,

635
00:34:35,600 --> 00:34:38,160
Speaker 3: would you like to be part of that? I said, yeah,

636
00:34:38,520 --> 00:34:40,520
Speaker 3: So where is it? We're going to do this in California?

637
00:34:40,560 --> 00:34:41,759
Speaker 3: He wanted to do it in LA. I said, no,

638
00:34:41,840 --> 00:34:45,120
Speaker 3: the suit in San Francisco. He lived in LA and

639
00:34:45,160 --> 00:34:48,399
Speaker 3: I'm like, well, Samcisco's kind of you know, Silicon Valley

640
00:34:48,400 --> 00:34:50,120
Speaker 3: all that sort of stuff. I said, that's where I go.

641
00:34:50,200 --> 00:34:52,719
Speaker 3: So we agreed. I was our first M and a

642
00:34:52,760 --> 00:34:56,200
Speaker 3: banker on the ground focused on technology for Golden Sachs

643
00:34:56,920 --> 00:35:02,160
Speaker 3: in San Francisco, Okay, and so so from there I advised,

644
00:35:02,239 --> 00:35:04,360
Speaker 3: you know, like I said, build companies like Apple Computer

645
00:35:04,480 --> 00:35:09,280
Speaker 3: and Texas Instruments and Hewlett Packard and eBay and Yahoo.

646
00:35:09,800 --> 00:35:12,880
Speaker 3: And what was amazing to me because again it's the

647
00:35:13,000 --> 00:35:18,160
Speaker 3: dawning of an industry. That's how they all did things differently.

648
00:35:19,880 --> 00:35:22,520
Speaker 3: In the world of a chemical engineer, if you went

649
00:35:22,560 --> 00:35:27,000
Speaker 3: into almost any production facility where they're you know, an

650
00:35:27,080 --> 00:35:30,359
Speaker 3: ortho cracker where they're taking oil and making different types

651
00:35:30,400 --> 00:35:33,040
Speaker 3: of fuel and gas, they're all pretty much the same

652
00:35:33,200 --> 00:35:35,840
Speaker 3: because over years they figured out what's the most efficient

653
00:35:35,840 --> 00:35:39,680
Speaker 3: way to do it. But that's not how the software

654
00:35:39,719 --> 00:35:43,680
Speaker 3: industry was. Everybody did it differently, their go to market,

655
00:35:44,160 --> 00:35:46,560
Speaker 3: their product development, okay, because.

656
00:35:46,280 --> 00:35:46,839
Speaker 6: It was new.

657
00:35:47,880 --> 00:35:52,239
Speaker 3: And so the whole ideal tomate behind Vista is how

658
00:35:52,280 --> 00:35:56,200
Speaker 3: do I take the best practices from software companies that

659
00:35:56,239 --> 00:36:00,920
Speaker 3: I have experience with and deliver those to other software

660
00:36:00,960 --> 00:36:04,080
Speaker 3: companies so that the efficiency now comes out of that

661
00:36:04,120 --> 00:36:08,160
Speaker 3: system and eliminate all that waste. Right, That's what Vista is.

662
00:36:08,320 --> 00:36:14,080
Speaker 3: It's a system. It's an engineered system. So my going

663
00:36:14,080 --> 00:36:16,480
Speaker 3: out to Silicon Valley, like all things in life, you

664
00:36:16,560 --> 00:36:19,440
Speaker 3: got to look at what informs you and what creates

665
00:36:19,480 --> 00:36:23,080
Speaker 3: the basis for the activities or the actions you now

666
00:36:23,160 --> 00:36:26,680
Speaker 3: bring forward into your work product, and that's what it is.

667
00:36:26,719 --> 00:36:29,920
Speaker 3: How do you bring engineering efficiency to the management operations

668
00:36:29,960 --> 00:36:35,200
Speaker 3: of software companies? So that's the narrative and that's what

669
00:36:35,239 --> 00:36:38,360
Speaker 3: my actions have been against from a Vista perspective.

670
00:36:38,520 --> 00:36:41,160
Speaker 5: So let's get into this conversation with private equity. Vista

671
00:36:41,800 --> 00:36:43,680
Speaker 5: is which the company that you started twenty years ago,

672
00:36:43,719 --> 00:36:47,800
Speaker 5: I believe, and it has obviously made you a billionaire

673
00:36:47,840 --> 00:36:51,000
Speaker 5: and you know, extremely successful person. But can you talk

674
00:36:51,040 --> 00:36:52,880
Speaker 5: about a lot of people don't even know what private

675
00:36:52,880 --> 00:36:53,400
Speaker 5: equity is.

676
00:36:53,480 --> 00:36:54,600
Speaker 7: Sure they might have.

677
00:36:54,800 --> 00:36:56,520
Speaker 5: I think people are familiar with Vinure Capital at this

678
00:36:56,560 --> 00:36:59,319
Speaker 5: point because that's really trendy, but can you talk about

679
00:36:59,360 --> 00:37:03,080
Speaker 5: what private what he is and the difference between that erners?

680
00:37:03,080 --> 00:37:03,400
Speaker 8: What's up?

681
00:37:03,560 --> 00:37:06,000
Speaker 2: You ever walk into a small business and everything just

682
00:37:06,160 --> 00:37:09,360
Speaker 2: works like the checkout is fast, the receipts are digital,

683
00:37:09,880 --> 00:37:12,840
Speaker 2: tipping is a breeze, and you're out the door before

684
00:37:12,880 --> 00:37:17,000
Speaker 2: the line even builds. Odds are they're using Square? We

685
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Speaker 2: love supporting businesses that run on Square because it just

686
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Speaker 2: feels seamless, whether it's a local coffee shop, a vendor

687
00:37:23,040 --> 00:37:25,200
Speaker 2: at a pop up market, or even one of.

688
00:37:25,120 --> 00:37:26,160
Speaker 8: Our merch partners.

689
00:37:26,400 --> 00:37:30,160
Speaker 2: Square makes it easy for them to take payments, manage inventory,

690
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Speaker 2: and run their business with confidence, all from one simple system.

691
00:37:34,640 --> 00:37:37,239
Speaker 2: If you're a business owner or even just thinking about

692
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Speaker 2: launching something soon, Square is hands down one of the

693
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Speaker 2: best tools out there to help you start, run, and grow.

694
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Speaker 2: It's not just about payments, it's about giving you time

695
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Speaker 2: back so you can focus on what matters most ready.

696
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Speaker 2: To see how Square can transform your business, visit Square

697
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Speaker 2: dot com backslash, go backslash eyl to learn more that

698
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Speaker 2: Square dot com backslow slash, go backslash eyl. Don't wait,

699
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Speaker 2: don't hesitate. Let's Square handle the back end so you

700
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Speaker 2: can keep pushing your vision forward. This episode is brought

701
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Speaker 2: to you by P and C Bank. A lot of

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712
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713
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Speaker 1: An illegal alien from Guatemala charged with raping a child

714
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715
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716
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Speaker 1: and selling child pornography in Michigan. These are just some

717
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Speaker 1: of the heinous migrant criminals caught because of President Donald J.

718
00:39:13,320 --> 00:39:17,120
Speaker 1: Trump's leadership. I'm Christy Noman, the United States Secretary of

719
00:39:17,160 --> 00:39:21,960
Speaker 1: Homeland Security. Under President Trump, attempted illegal border crossings are

720
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Speaker 1: at the lowest levels ever recorded, and over one hundred

721
00:39:25,400 --> 00:39:29,279
Speaker 1: thousand illegal aliens have been arrested. If you are here illegally,

722
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Speaker 1: your next you will be fine nearly one thousand dollars

723
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724
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725
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726
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727
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Speaker 1: will be protected.

728
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Speaker 7: Sponsored by the United States Department of Homeland Security and

729
00:39:53,480 --> 00:39:54,160
Speaker 7: Benji Capital.

730
00:39:54,320 --> 00:39:57,760
Speaker 3: Yeah, it's a great question because our community. It's important

731
00:39:57,760 --> 00:40:03,120
Speaker 3: our community understand the goal of capital and growth. And

732
00:40:03,160 --> 00:40:10,600
Speaker 3: there's different providers of capital along different stages of a company. Okay.

733
00:40:12,320 --> 00:40:14,120
Speaker 3: One of the best ways to think about it is

734
00:40:14,160 --> 00:40:17,680
Speaker 3: if you all have an idea, which you have, we're

735
00:40:17,719 --> 00:40:21,960
Speaker 3: going to create a platform to educate our people. You're

736
00:40:21,960 --> 00:40:25,799
Speaker 3: going to start off first with the idea of labor YouTube, right,

737
00:40:26,440 --> 00:40:29,279
Speaker 3: and we've got ideas, we're going to write them down.

738
00:40:29,400 --> 00:40:32,279
Speaker 3: We're going to put a process together to now communicate

739
00:40:32,320 --> 00:40:35,760
Speaker 3: those ideas. Great, and so you start off and social

740
00:40:35,760 --> 00:40:38,920
Speaker 3: media because it's free, and I say, well, how do

741
00:40:39,000 --> 00:40:42,960
Speaker 3: I now push this out more broadly speaking beyond trying

742
00:40:43,000 --> 00:40:46,560
Speaker 3: to get followers? And you may say maybe I should

743
00:40:46,560 --> 00:40:50,360
Speaker 3: buy some advertising. Where am I going to get this money? Okay?

744
00:40:51,560 --> 00:40:54,879
Speaker 3: The vast majority of investment capital even today is still

745
00:40:54,880 --> 00:40:58,960
Speaker 3: out of the debt markets. So unfortunately, seventy percent of

746
00:40:59,000 --> 00:41:03,319
Speaker 3: our communities don't actually have a branch bank. So depend

747
00:41:03,400 --> 00:41:06,200
Speaker 3: upon where you live, there's no bank that you have

748
00:41:06,239 --> 00:41:08,120
Speaker 3: a banking relationship with. It you can go and say, hey,

749
00:41:08,160 --> 00:41:12,200
Speaker 3: I need ten thousand, fifty hundred thousand dollars because look

750
00:41:12,239 --> 00:41:14,440
Speaker 3: at how you know and they don't understand your business.

751
00:41:15,200 --> 00:41:18,520
Speaker 3: I've got eight hundred and forty thousand followers, and if

752
00:41:18,560 --> 00:41:23,440
Speaker 3: I had twenty thousand dollars, I could rent a studio okay,

753
00:41:23,480 --> 00:41:25,759
Speaker 3: five times a month and get a million followers or

754
00:41:25,800 --> 00:41:28,719
Speaker 3: two million followers. And by having two million followers, I

755
00:41:28,719 --> 00:41:33,040
Speaker 3: can go get advertisers who will pay me to have

756
00:41:33,160 --> 00:41:39,680
Speaker 3: access to you know, my my people, right and if

757
00:41:39,719 --> 00:41:41,400
Speaker 3: they pay me, I can now pay you back that

758
00:41:41,520 --> 00:41:43,520
Speaker 3: money and then I can invest in more of my

759
00:41:43,560 --> 00:41:46,279
Speaker 3: business make it growth. That's the capital cycle, and it's

760
00:41:46,280 --> 00:41:50,320
Speaker 3: a virtuous one, but our community hasn't had access to capital.

761
00:41:51,840 --> 00:41:53,520
Speaker 3: The next phase of that is like some of the

762
00:41:53,560 --> 00:41:59,279
Speaker 3: banks are like, well, there's no hard assets because your

763
00:41:59,360 --> 00:42:01,480
Speaker 3: hard assets your hard work. So I'm not going to

764
00:42:01,560 --> 00:42:04,880
Speaker 3: lend you any money. I'm not sure you're credit worthy,

765
00:42:05,000 --> 00:42:07,960
Speaker 3: so you can't come to me. So enter the venture capitalists.

766
00:42:08,360 --> 00:42:13,439
Speaker 3: The venture capitalists are designed to actually look at what

767
00:42:13,480 --> 00:42:17,120
Speaker 3: it is you're doing in the markets that you participate in,

768
00:42:17,520 --> 00:42:20,240
Speaker 3: and if you have more capital and in some cases

769
00:42:20,280 --> 00:42:23,920
Speaker 3: know how and resources that they can hopefully bring to

770
00:42:23,960 --> 00:42:26,239
Speaker 3: you because they've done this once or twice or one

771
00:42:26,280 --> 00:42:29,240
Speaker 3: hundred times in that industry, they can show you. Yeah,

772
00:42:29,600 --> 00:42:34,680
Speaker 3: take that ten thousand dollars. Okay, don't buy advertising. But

773
00:42:34,760 --> 00:42:36,200
Speaker 3: what I want you to do is actually build a

774
00:42:36,200 --> 00:42:38,839
Speaker 3: platform where you can do your own streaming. It's more

775
00:42:38,840 --> 00:42:41,800
Speaker 3: efficient long term and you make more money long term.

776
00:42:42,200 --> 00:42:44,480
Speaker 3: And so that's advice you might get from them. And

777
00:42:44,520 --> 00:42:47,800
Speaker 3: here's ten thousand dollars. Now, they're not going to necessarily

778
00:42:47,840 --> 00:42:53,359
Speaker 3: ask for an interest rate like the bank spam you know, four, five, six, eight, ten,

779
00:42:53,440 --> 00:42:58,200
Speaker 3: now twelve percent right in interest. They're going to ask

780
00:42:58,200 --> 00:43:01,080
Speaker 3: you for a percentage of the company. Say, and when

781
00:43:01,080 --> 00:43:03,800
Speaker 3: you sell the company, you're not going own one hundred percent,

782
00:43:03,880 --> 00:43:06,879
Speaker 3: You're going one hundred percent minus how much they bought.

783
00:43:07,280 --> 00:43:12,400
Speaker 3: That's venture capital. Okay. Now years later, you're now running

784
00:43:12,400 --> 00:43:15,799
Speaker 3: a big platform, you got twenty million followers, you've got

785
00:43:15,880 --> 00:43:21,480
Speaker 3: advertisers making eighteen fifteen million dollars a month in advertising revenues,

786
00:43:21,520 --> 00:43:23,200
Speaker 3: and what you're not spending on your team and crew

787
00:43:23,200 --> 00:43:25,400
Speaker 3: because you're going to give them all raises because they're phenomenal.

788
00:43:26,239 --> 00:43:27,440
Speaker 3: You guys should I'm giving.

789
00:43:27,200 --> 00:43:28,000
Speaker 7: A shout out.

790
00:43:30,320 --> 00:43:36,919
Speaker 3: Yeah, yeah, So don't be two greed. No. But now

791
00:43:36,960 --> 00:43:39,359
Speaker 3: you're at the point where you're making you know, ten

792
00:43:39,760 --> 00:43:43,080
Speaker 3: thirty forty fifty million dollars in revenues, and now you're

793
00:43:43,120 --> 00:43:47,520
Speaker 3: trying to manage your business how profitable and expenses and

794
00:43:47,560 --> 00:43:51,680
Speaker 3: all that. And that's where private equity comes in. Private

795
00:43:51,719 --> 00:43:55,440
Speaker 3: equity typically are larger checks and we typically bring in

796
00:43:55,480 --> 00:43:57,640
Speaker 3: my case, we do buyouts. So we want to do

797
00:43:57,719 --> 00:44:02,000
Speaker 3: control investments where you were selling and control of your business.

798
00:44:02,000 --> 00:44:03,560
Speaker 3: And you may say, well, why am I selling control

799
00:44:03,560 --> 00:44:06,000
Speaker 3: of my business? Hey, you get the money, but be

800
00:44:06,160 --> 00:44:10,040
Speaker 3: what you really want is my know how Why do

801
00:44:10,160 --> 00:44:13,799
Speaker 3: founders come to us? Because we've done it so many

802
00:44:13,840 --> 00:44:17,880
Speaker 3: times in enterprise software, I can bring remember those best practices.

803
00:44:17,960 --> 00:44:20,440
Speaker 3: I was telling you, here's how you run your product

804
00:44:20,480 --> 00:44:24,200
Speaker 3: development organization more efficiently, Here's how you run your go

805
00:44:24,280 --> 00:44:26,839
Speaker 3: to market system more efficiently, Here's how you do your

806
00:44:26,840 --> 00:44:30,440
Speaker 3: contract administration more efficiently. Because you've never done that before,

807
00:44:30,560 --> 00:44:33,440
Speaker 3: or you've done it, but you don't necessarily know the

808
00:44:33,520 --> 00:44:37,520
Speaker 3: best way to do it, and we can share experiences

809
00:44:37,560 --> 00:44:41,399
Speaker 3: with you that actually can enable you to do it now.

810
00:44:41,440 --> 00:44:45,200
Speaker 3: Not all private equity people bring that. Some just bring

811
00:44:45,239 --> 00:44:47,239
Speaker 3: to capital and they say, I just want to own

812
00:44:47,280 --> 00:44:50,719
Speaker 3: the business because if I buy the business and it's

813
00:44:50,760 --> 00:44:54,799
Speaker 3: growing well over time, and they may put debt on

814
00:44:54,840 --> 00:44:58,240
Speaker 3: the business, they're going to increase the value of that business.

815
00:44:59,120 --> 00:45:00,799
Speaker 3: And then when they sell it, but they make the

816
00:45:00,840 --> 00:45:04,080
Speaker 3: difference between where they sold it and what they bought

817
00:45:04,080 --> 00:45:06,720
Speaker 3: it for, minus the debt that was in the company.

818
00:45:07,400 --> 00:45:10,960
Speaker 3: So the way to think about got to think about

819
00:45:11,080 --> 00:45:13,000
Speaker 3: buying a house. If you go in, it's a house

820
00:45:13,000 --> 00:45:15,560
Speaker 3: worth one hundred thousand dollars, I know you guys talk

821
00:45:15,600 --> 00:45:21,520
Speaker 3: about this shell and a buyout person can come and say,

822
00:45:21,520 --> 00:45:25,160
Speaker 3: all right, I'm gonna buy it for one hundred thousand, Okay,

823
00:45:26,160 --> 00:45:27,520
Speaker 3: But then they go to the bank and they borrow

824
00:45:27,560 --> 00:45:30,719
Speaker 3: sixty thousand, so they only have to put forty thousand in. Well,

825
00:45:30,760 --> 00:45:33,399
Speaker 3: because it's in a good neighborhood. Five years later, it's

826
00:45:33,400 --> 00:45:36,160
Speaker 3: now worth two hundred thousand, three hundred thousand whatever it

827
00:45:36,239 --> 00:45:40,239
Speaker 3: might be, right, or they fixed up the house, they

828
00:45:40,280 --> 00:45:42,680
Speaker 3: went in, put a new porche in and put forty

829
00:45:42,719 --> 00:45:45,000
Speaker 3: thousand in to really improve the value of the house.

830
00:45:45,040 --> 00:45:46,880
Speaker 3: Now I can sell it for three hundred thousand. They

831
00:45:46,920 --> 00:45:48,920
Speaker 3: sell it for three hundred, They pay back the sixty

832
00:45:48,920 --> 00:45:51,120
Speaker 3: thousand to the bank. They've been paying interest along the

833
00:45:51,160 --> 00:45:54,480
Speaker 3: way right, and that difference they put it in forty

834
00:45:54,680 --> 00:45:57,479
Speaker 3: The difference is what is profit and that's what profit

835
00:45:57,520 --> 00:46:03,400
Speaker 3: equity firms do. Okay. As an owner of protty firm,

836
00:46:03,440 --> 00:46:06,120
Speaker 3: that difference in value. If I borrowed the money or

837
00:46:06,200 --> 00:46:08,960
Speaker 3: raised the money, I've got to pay by investors back

838
00:46:09,200 --> 00:46:11,160
Speaker 3: and then I get a percentage of profits. So that's

839
00:46:11,160 --> 00:46:14,840
Speaker 3: how that works. So it's just a different form of capital.

840
00:46:14,920 --> 00:46:17,840
Speaker 5: So you just buy buying companies as opposed to where

841
00:46:18,080 --> 00:46:20,919
Speaker 5: bench capital they're investing in companies, but the owner still

842
00:46:20,960 --> 00:46:21,360
Speaker 5: runs it.

843
00:46:21,640 --> 00:46:23,720
Speaker 7: You're actually taking control and ownership.

844
00:46:23,400 --> 00:46:27,239
Speaker 3: Of the company. Yes, but like ninety percent of the

845
00:46:27,320 --> 00:46:30,360
Speaker 3: founders that we buy our companies from are still involved

846
00:46:30,400 --> 00:46:33,840
Speaker 3: in the business with us or in our ecosystem. Okay,

847
00:46:34,280 --> 00:46:39,120
Speaker 3: And so you're taking control, but you're also investing in

848
00:46:39,160 --> 00:46:42,200
Speaker 3: the infrastructure. Now you like to use words, you're accelerating

849
00:46:42,280 --> 00:46:46,520
Speaker 3: the corporate maturity of that business. So it might take

850
00:46:46,560 --> 00:46:50,480
Speaker 3: you ten years to figure out what we've done forty

851
00:46:50,520 --> 00:46:55,120
Speaker 3: five times already. Right, And now I bring that intellectual

852
00:46:55,120 --> 00:46:57,640
Speaker 3: property into the company and say, here's how we're going

853
00:46:57,680 --> 00:47:00,400
Speaker 3: to design this a little differently. Here's we're going to

854
00:47:00,480 --> 00:47:03,880
Speaker 3: change your compensation plans for your salespeople to actually incentivize

855
00:47:03,920 --> 00:47:07,919
Speaker 3: them to give you more stable revenues or or or

856
00:47:08,200 --> 00:47:11,600
Speaker 3: you know, more visibility into the future revenues and earnings

857
00:47:11,640 --> 00:47:13,680
Speaker 3: of that business that you may not have figured out

858
00:47:13,760 --> 00:47:15,719
Speaker 3: or may not figure out because you may not be

859
00:47:16,160 --> 00:47:19,160
Speaker 3: in an environment a circle of people who have dealt

860
00:47:19,160 --> 00:47:22,520
Speaker 3: with that before. And so that's why the expertise that

861
00:47:22,600 --> 00:47:26,600
Speaker 3: we bring is often more valuable than the capital.

862
00:47:27,160 --> 00:47:31,120
Speaker 2: Yeah, it feels like the highest level of mentorships, last internship,

863
00:47:31,360 --> 00:47:33,759
Speaker 2: where it's like you're giving it to me because you've

864
00:47:33,760 --> 00:47:34,880
Speaker 2: already been through it.

865
00:47:34,920 --> 00:47:40,040
Speaker 3: Right, And we create an ecosystem where our founders are

866
00:47:40,200 --> 00:47:45,360
Speaker 3: we intentionally bring them together our CEOs. We have twenty

867
00:47:45,400 --> 00:47:49,480
Speaker 3: six events this year. Okay, we've got eighty six software

868
00:47:49,480 --> 00:47:53,400
Speaker 3: companies today, we've got ninety five thousand employees. But we

869
00:47:53,520 --> 00:47:55,959
Speaker 3: have an event. And the last month our CXO event,

870
00:47:56,000 --> 00:47:59,760
Speaker 3: I had four hundred and fifty cxos. So that's you know, CEO,

871
00:48:00,120 --> 00:48:02,920
Speaker 3: chief financial officers, chief marketing officers, you know, c sells

872
00:48:02,960 --> 00:48:06,600
Speaker 3: all that in one city for three days in that case,

873
00:48:06,640 --> 00:48:09,239
Speaker 3: going through seven or eight different tracks. So if you're

874
00:48:09,280 --> 00:48:12,719
Speaker 3: a CFO of a forty million dollar software company. You're

875
00:48:12,760 --> 00:48:14,919
Speaker 3: sitting next to a CFO of a four hundred million

876
00:48:14,920 --> 00:48:17,160
Speaker 3: dollar software company, sitting next to a CFO of a

877
00:48:17,200 --> 00:48:20,200
Speaker 3: three billion dollar software company. You all are dealing with

878
00:48:20,239 --> 00:48:22,640
Speaker 3: different things on the one hand, but you want to

879
00:48:22,719 --> 00:48:25,480
Speaker 3: understand what you need to do to build your organization

880
00:48:26,080 --> 00:48:28,920
Speaker 3: so you can support four hundred million dollars worth of growth.

881
00:48:29,920 --> 00:48:31,839
Speaker 3: And you want to understand what you need to do

882
00:48:31,880 --> 00:48:34,200
Speaker 3: in your organization four hundred million so you can support

883
00:48:34,239 --> 00:48:36,520
Speaker 3: a three billion dollar You're not going to get that

884
00:48:36,600 --> 00:48:39,719
Speaker 3: anywhere else but at Vista, you see what I mean. Oh,

885
00:48:39,760 --> 00:48:41,240
Speaker 3: and by the way, we do that for the product

886
00:48:41,280 --> 00:48:44,719
Speaker 3: and technology groups as well, and we do it for separately,

887
00:48:45,960 --> 00:48:48,600
Speaker 3: and we'll do it for our talent organization's talent development,

888
00:48:49,440 --> 00:48:52,480
Speaker 3: and we'll do it for go to market. You see

889
00:48:52,480 --> 00:48:55,080
Speaker 3: what I mean. All of those are elements that are

890
00:48:55,239 --> 00:49:01,280
Speaker 3: value add intellectual property best practices that we now share

891
00:49:01,440 --> 00:49:07,759
Speaker 3: with the community of founders and executives in all of

892
00:49:07,800 --> 00:49:11,879
Speaker 3: our portfolio companies. So it gets back into that efficacy,

893
00:49:12,080 --> 00:49:16,160
Speaker 3: that efficiency I've talked about in engineering. Now I could

894
00:49:16,160 --> 00:49:18,000
Speaker 3: hope that you could figure this out. I can invest

895
00:49:18,040 --> 00:49:19,480
Speaker 3: in your company and hope you figure it out and

896
00:49:19,480 --> 00:49:22,240
Speaker 3: if you don't afire you. But we don't take that approach.

897
00:49:23,040 --> 00:49:26,279
Speaker 3: We say, let me give you tools and systems, and

898
00:49:26,400 --> 00:49:30,279
Speaker 3: let me actually equip your management team with tools in

899
00:49:30,360 --> 00:49:34,799
Speaker 3: systems so they have a higher probability of being successful

900
00:49:35,560 --> 00:49:37,400
Speaker 3: as opposed to let me just hope you get it

901
00:49:37,480 --> 00:49:40,279
Speaker 3: right or you figure it out. You see what I mean.

902
00:49:41,000 --> 00:49:43,839
Speaker 3: That's the difference in how we approach the market. And

903
00:49:43,880 --> 00:49:47,120
Speaker 3: that's in some cases difference between i'll call it highly

904
00:49:47,160 --> 00:49:51,319
Speaker 3: skilled tuned investors, either private acuity or venture capital, and

905
00:49:51,360 --> 00:49:53,320
Speaker 3: those who are just providing access to capital.

906
00:49:54,080 --> 00:49:55,640
Speaker 2: One of the things you were talking to us about

907
00:49:55,719 --> 00:49:58,239
Speaker 2: was knowing value and worth. And as I'm listening to

908
00:49:58,239 --> 00:50:00,840
Speaker 2: you talking about the stories of creating eficient systems for

909
00:50:00,920 --> 00:50:04,080
Speaker 2: other companies, at what point or was it always are

910
00:50:04,160 --> 00:50:07,799
Speaker 2: that entrepreneurial mindset where like, I'm doing this for them,

911
00:50:08,360 --> 00:50:10,400
Speaker 2: I need to start doing this for myself. Was that

912
00:50:10,480 --> 00:50:13,239
Speaker 2: always in the mindset or did that develop as you

913
00:50:13,320 --> 00:50:16,680
Speaker 2: created more efficient systems and said, wait, I'm saving them this,

914
00:50:16,760 --> 00:50:19,120
Speaker 2: I'm saving them this, maybe I can create this for myself.

915
00:50:19,280 --> 00:50:23,239
Speaker 3: Yeah. It's a great question, because like all things in

916
00:50:23,280 --> 00:50:27,839
Speaker 3: my life, it's evolution. You know, my parents were school teachers.

917
00:50:28,040 --> 00:50:32,000
Speaker 3: I didn't have private equity people in my life, bankers

918
00:50:32,040 --> 00:50:35,440
Speaker 3: in my life, lawyers in my life. So you're learning

919
00:50:35,480 --> 00:50:38,840
Speaker 3: along the way, and you hope that you can glean

920
00:50:38,960 --> 00:50:46,239
Speaker 3: and learn and understand insights that could be helpful to

921
00:50:46,280 --> 00:50:48,640
Speaker 3: you going forward. One of the key insights we talked

922
00:50:48,640 --> 00:50:51,799
Speaker 3: about a so earlier that I had I got as

923
00:50:51,800 --> 00:50:54,879
Speaker 3: an engineer. Okay, so I was working for a company

924
00:50:54,880 --> 00:50:56,600
Speaker 3: who was actually a company called craft Urn the foods,

925
00:50:57,160 --> 00:51:04,040
Speaker 3: and in that case I was responsible for changing and

926
00:51:04,120 --> 00:51:07,800
Speaker 3: hopefully enhancing One of our best products was a company

927
00:51:07,800 --> 00:51:14,160
Speaker 3: called Maxwehouse, which is coffee, right and coffee blended coffee

928
00:51:14,200 --> 00:51:16,640
Speaker 3: is made up of different forms of coffee. We talked

929
00:51:16,680 --> 00:51:18,440
Speaker 3: about you know, rap coas or busses and maybe five

930
00:51:18,520 --> 00:51:22,080
Speaker 3: or six different types of coffee roasted to a certain amount,

931
00:51:22,160 --> 00:51:24,280
Speaker 3: ground to a certain amount that give you a flavor

932
00:51:24,280 --> 00:51:26,920
Speaker 3: profile that you want to be consistent everywhere you go

933
00:51:26,960 --> 00:51:29,279
Speaker 3: in the world, so no matter where you went, it

934
00:51:29,320 --> 00:51:33,799
Speaker 3: tastes the same. Okay, this is backcnated when Maxweus was

935
00:51:33,800 --> 00:51:37,279
Speaker 3: the largest coffee distributor on the planet. Okay, Well, one

936
00:51:37,360 --> 00:51:42,680
Speaker 3: of my projects was to figure out a way to

937
00:51:42,719 --> 00:51:45,920
Speaker 3: an essence enhance the flavor profile at a lower cost.

938
00:51:46,080 --> 00:51:47,680
Speaker 3: And I did that, and I'll spare you all the details.

939
00:51:47,680 --> 00:51:49,279
Speaker 3: I told you got some of the details. Let your

940
00:51:49,320 --> 00:51:52,759
Speaker 3: audiencity know all that nerdy stuff, but U And in

941
00:51:52,840 --> 00:51:56,720
Speaker 3: doing that, I was able to save the company fourteen

942
00:51:56,800 --> 00:52:01,000
Speaker 3: cents a pound on every pound of coffee that we manufactured.

943
00:52:02,400 --> 00:52:06,880
Speaker 3: And we were manufacturing tens of millions of pounds a

944
00:52:06,960 --> 00:52:11,840
Speaker 3: month of coffee, okay. And I told you guys that

945
00:52:11,960 --> 00:52:13,719
Speaker 3: I chuckled because I got a great little plaque out

946
00:52:13,719 --> 00:52:15,760
Speaker 3: of it to give me a thousand dollars in an award.

947
00:52:15,800 --> 00:52:19,359
Speaker 3: And that was wonderful. And I started to understand that

948
00:52:20,400 --> 00:52:21,239
Speaker 3: Ernest checked this out.

949
00:52:21,280 --> 00:52:23,960
Speaker 2: If you're looking to add to your podcast list, I

950
00:52:24,040 --> 00:52:26,600
Speaker 2: got on. You definitely need to check out the new

951
00:52:26,640 --> 00:52:30,799
Speaker 2: Audible original Direct Deposit What Happens When Black People Get Rich?

952
00:52:31,120 --> 00:52:34,040
Speaker 2: Hosted by Chad Sanders, the author of Black Magic, What

953
00:52:34,200 --> 00:52:37,959
Speaker 2: Black Leaders Learned from Trauma and Triumph, and TV writer

954
00:52:38,040 --> 00:52:40,840
Speaker 2: of Rap Shit, Direct Deposit explores what it takes to

955
00:52:40,840 --> 00:52:43,719
Speaker 2: get rich and stay rich while black in America. For

956
00:52:43,800 --> 00:52:47,440
Speaker 2: all my young black entrepreneurs, you must tap in. Direct

957
00:52:47,440 --> 00:52:50,239
Speaker 2: Deposit seeks to answer the questions, what's money going to

958
00:52:50,280 --> 00:52:50,759
Speaker 2: do for me?

959
00:52:51,239 --> 00:52:54,400
Speaker 8: What's money going to do to me? It's quite a dilemma.

960
00:52:54,640 --> 00:52:56,520
Speaker 2: Chad went from sleeping on a mattress on the floor

961
00:52:56,520 --> 00:52:59,400
Speaker 2: in his cramped apartment to nearly overnight success after the

962
00:52:59,520 --> 00:53:02,840
Speaker 2: legendary Spike Ly signed on to developed one of his scripts.

963
00:53:03,200 --> 00:53:06,120
Speaker 2: After becoming more and more successful, Chad has realized that

964
00:53:06,160 --> 00:53:07,600
Speaker 2: his bank account might change.

965
00:53:07,920 --> 00:53:09,840
Speaker 8: But the struggle means Chad.

966
00:53:09,600 --> 00:53:12,560
Speaker 2: Speats the prominent black figures in American pop culture like Easter, Ray,

967
00:53:12,880 --> 00:53:14,840
Speaker 2: Garriel Union, and Soladad O'Brien.

968
00:53:15,239 --> 00:53:18,239
Speaker 8: Visit audible dot com slash direct deposit to listen.

969
00:53:18,280 --> 00:53:21,000
Speaker 3: Now, Look, I could have never done that if I

970
00:53:21,000 --> 00:53:23,640
Speaker 3: weren't in that environment. I could have never done that

971
00:53:23,680 --> 00:53:27,720
Speaker 3: had I not been a chemical engineer from Cornell Okay,

972
00:53:27,840 --> 00:53:31,840
Speaker 3: But I was graced with both of those scenarios, and

973
00:53:31,920 --> 00:53:35,239
Speaker 3: I was able to create something of real value for

974
00:53:35,280 --> 00:53:38,439
Speaker 3: the company at the time. But then you start looking

975
00:53:38,480 --> 00:53:41,439
Speaker 3: at the give get analysis. They're saving you ten, twelve,

976
00:53:41,480 --> 00:53:46,080
Speaker 3: fourteen million dollars a year, and you know, I got

977
00:53:46,120 --> 00:53:48,479
Speaker 3: paid the same thirty four thousand dollars a year whatever

978
00:53:48,480 --> 00:53:49,960
Speaker 3: it was at the time, which I thought was more

979
00:53:49,960 --> 00:53:51,560
Speaker 3: money than could ever make because that was more money

980
00:53:51,560 --> 00:53:55,040
Speaker 3: my dad ever made in his career, Okay, as a principal, right,

981
00:53:55,840 --> 00:53:58,680
Speaker 3: And so then you start thinking about is there a

982
00:53:58,800 --> 00:54:04,000
Speaker 3: different utility of my time that I should be thinking about?

983
00:54:04,320 --> 00:54:08,520
Speaker 3: And ultimately what I actually realized. And you know, we

984
00:54:08,800 --> 00:54:12,680
Speaker 3: chat about this so earlier through my interactions with with

985
00:54:12,680 --> 00:54:15,200
Speaker 3: with John Newtondahl and Ray McGuire and these sort of

986
00:54:15,239 --> 00:54:19,920
Speaker 3: folks the power of capital versus labor, And we just

987
00:54:20,160 --> 00:54:24,040
Speaker 3: talked about labor and you all as labored to create

988
00:54:24,080 --> 00:54:27,640
Speaker 3: this platform. At some point you realize if I had

989
00:54:27,680 --> 00:54:30,600
Speaker 3: a different quantum of capital, you could reach more people

990
00:54:30,640 --> 00:54:36,120
Speaker 3: on accident than you do flying around and doing events.

991
00:54:37,000 --> 00:54:40,839
Speaker 3: If you utilize that capital efficiently, you see to mean,

992
00:54:41,239 --> 00:54:47,920
Speaker 3: And so that's kind of the next evolution. And yeah, right, okay,

993
00:54:48,040 --> 00:54:52,320
Speaker 3: And in some cases you learn it. In some cases

994
00:54:52,360 --> 00:54:56,759
Speaker 3: someone tells you right, and and if you get it right,

995
00:54:57,239 --> 00:55:01,839
Speaker 3: you then can do it at increasing scale and efficiency.

996
00:55:02,080 --> 00:55:05,040
Speaker 3: And we call it the unit economics of your productivity

997
00:55:05,080 --> 00:55:07,080
Speaker 3: go up with every time you do it as opposed

998
00:55:07,120 --> 00:55:12,080
Speaker 3: to down. Right, So those are the dynamics that informed

999
00:55:12,200 --> 00:55:16,319
Speaker 3: me on understanding capital. And one of the things we

1000
00:55:16,360 --> 00:55:21,040
Speaker 3: talked about, you know, capital markets are just basically equilibrium systems.

1001
00:55:23,040 --> 00:55:27,120
Speaker 3: That's what we learn in chemical engineering is understanding equilibrium systems.

1002
00:55:28,160 --> 00:55:31,960
Speaker 3: It's actually the same thing in some respects. You've got

1003
00:55:31,960 --> 00:55:34,200
Speaker 3: difference out of inputs and outputs, but what is the

1004
00:55:34,239 --> 00:55:39,520
Speaker 3: equilibrium system that you're actually evaluating and understanding and in

1005
00:55:39,560 --> 00:55:43,399
Speaker 3: some cases changing the dynamic of the control in those

1006
00:55:43,400 --> 00:55:48,160
Speaker 3: equilibrium systems to make you more efficient outcome. So they're

1007
00:55:48,200 --> 00:55:50,600
Speaker 3: not as far apart as you think if you look

1008
00:55:50,600 --> 00:55:51,880
Speaker 3: at it through the right lens.

1009
00:55:52,400 --> 00:55:53,840
Speaker 5: Well, let me ask you this as far as I

1010
00:55:53,840 --> 00:55:56,120
Speaker 5: want to make sure I get this number correct. Well, first,

1011
00:55:56,239 --> 00:55:59,520
Speaker 5: your guy's portfolio consists of ninety four billion dollars ninety

1012
00:55:59,520 --> 00:56:00,640
Speaker 5: four billion in assets.

1013
00:56:00,680 --> 00:56:02,399
Speaker 3: Yeah, a little more than that, but yeah, that's close enough.

1014
00:56:02,520 --> 00:56:03,160
Speaker 7: Who's counting.

1015
00:56:03,280 --> 00:56:09,560
Speaker 5: Yeah, but this is a disturbing fact. So one point

1016
00:56:09,640 --> 00:56:14,600
Speaker 5: four percent of US based assets under management managers are

1017
00:56:14,960 --> 00:56:21,160
Speaker 5: for diverse owned firms. Women and people of color can bine, right,

1018
00:56:21,280 --> 00:56:24,520
Speaker 5: So that is disturbing. So yeah, talk, So that's one

1019
00:56:24,560 --> 00:56:28,680
Speaker 5: point four percent of the firms are women, and it's

1020
00:56:28,760 --> 00:56:32,200
Speaker 5: like everybody like Latinos, blacks like you just don't everybody

1021
00:56:32,200 --> 00:56:32,680
Speaker 5: in a bucket.

1022
00:56:32,719 --> 00:56:34,920
Speaker 3: Yeah, and we only have access to one point four

1023
00:56:34,920 --> 00:56:37,200
Speaker 3: percent of the assets. We make it up a little

1024
00:56:37,200 --> 00:56:39,680
Speaker 3: more one point four percent of the population, though, don't we,

1025
00:56:40,120 --> 00:56:42,719
Speaker 3: And we actually make up a little higher than that

1026
00:56:42,800 --> 00:56:46,400
Speaker 3: in terms of our contributing to the pension plans. Did

1027
00:56:46,480 --> 00:56:49,000
Speaker 3: your parents are they part of a pension plan? Yeah?

1028
00:56:49,040 --> 00:56:49,359
Speaker 3: My mom.

1029
00:56:49,440 --> 00:56:51,439
Speaker 7: My mom was a teacher for thirty years.

1030
00:56:51,680 --> 00:56:56,359
Speaker 3: Yeah, okay, what's percentage of black teachers in her union?

1031
00:56:57,600 --> 00:57:00,800
Speaker 3: A lot, little more than one point four percent for sure. Okay,

1032
00:57:00,800 --> 00:57:04,280
Speaker 3: what about you know some of the civil service workers?

1033
00:57:05,400 --> 00:57:09,320
Speaker 3: Probably the same thing. Do about federal government? Yeah, probably

1034
00:57:09,320 --> 00:57:14,719
Speaker 3: the same thing. But yet we don't control a proportionate

1035
00:57:14,760 --> 00:57:17,920
Speaker 3: share of the assets that our parents put those sixty

1036
00:57:17,960 --> 00:57:22,840
Speaker 3: two dollars a weekend for pensions, and we our parents

1037
00:57:23,000 --> 00:57:27,080
Speaker 3: go out work so hard, send us the school, send

1038
00:57:27,160 --> 00:57:31,160
Speaker 3: us the college, get educated, go manage this capital. But

1039
00:57:31,320 --> 00:57:36,560
Speaker 3: yet they don't get the capital to manage that, as

1040
00:57:36,600 --> 00:57:39,880
Speaker 3: you know, flows back in our communities at much higher

1041
00:57:39,960 --> 00:57:44,440
Speaker 3: rates than almost anything else, because as you do better,

1042
00:57:44,880 --> 00:57:50,400
Speaker 3: you typically are enhancing your community at much higher rates

1043
00:57:51,000 --> 00:57:55,840
Speaker 3: than non people of color. So those are the things

1044
00:57:55,920 --> 00:57:59,840
Speaker 3: we you and me have to make people aware and

1045
00:58:00,160 --> 00:58:04,280
Speaker 3: drive these pension plans to make sure they're distributing their

1046
00:58:04,320 --> 00:58:10,360
Speaker 3: fair share to the constituency base that makes up those

1047
00:58:10,400 --> 00:58:12,880
Speaker 3: who are contributing point number one and in point number

1048
00:58:12,880 --> 00:58:16,479
Speaker 3: two to the highest performers, which when you look at

1049
00:58:16,720 --> 00:58:19,560
Speaker 3: we have a group called the NAIIC that's been doing

1050
00:58:19,560 --> 00:58:24,600
Speaker 3: this work for twenty years evaluating our firms perform at

1051
00:58:24,600 --> 00:58:27,440
Speaker 3: a higher rate, a higher level with lower loss ratios.

1052
00:58:27,560 --> 00:58:30,000
Speaker 3: Can we talk about that, Yeah, sure so, I mean

1053
00:58:30,040 --> 00:58:32,800
Speaker 3: we've been doing this. When we do these studies, we

1054
00:58:32,880 --> 00:58:35,040
Speaker 3: have over the last twenty years, especially in the private

1055
00:58:35,080 --> 00:58:40,560
Speaker 3: equity business, returned more capital, had fewer losses, lower loss

1056
00:58:40,640 --> 00:58:45,840
Speaker 3: ratios than majority white firms, but yet we get less

1057
00:58:45,840 --> 00:58:48,680
Speaker 3: than one point four percent of the allocation of capital.

1058
00:58:49,440 --> 00:58:52,000
Speaker 3: We've got the studies and we go take these studies

1059
00:58:52,000 --> 00:58:55,760
Speaker 3: and we you know, it goes in shows. These consultants

1060
00:58:55,800 --> 00:58:57,680
Speaker 3: are in there and they kind of like, yeah, it's

1061
00:58:57,720 --> 00:59:03,040
Speaker 3: going to take some time. Well that's a problem. Okay.

1062
00:59:03,240 --> 00:59:08,800
Speaker 3: Those are the things that destabilize communities if they feel

1063
00:59:08,800 --> 00:59:13,240
Speaker 3: there is injustice and the way people are treated and

1064
00:59:13,280 --> 00:59:18,800
Speaker 3: it's not a meritocracy. That's a dynamic that has to change,

1065
00:59:19,280 --> 00:59:21,000
Speaker 3: and there are certain leaders who are doing a good

1066
00:59:21,080 --> 00:59:24,480
Speaker 3: job of that. You know, somebody criticize Honestly, New York

1067
00:59:24,640 --> 00:59:26,760
Speaker 3: does a pretty good job of it. New York State,

1068
00:59:27,120 --> 00:59:29,000
Speaker 3: New York City is to call out. And we're sitting

1069
00:59:29,040 --> 00:59:33,919
Speaker 3: here now right in understanding that, and you know, comptrollers

1070
00:59:33,920 --> 00:59:37,640
Speaker 3: and treasurers, you know, Adopotly being one and Lander being

1071
00:59:37,640 --> 00:59:40,280
Speaker 3: the newest one in New York City, understand that and

1072
00:59:40,320 --> 00:59:43,600
Speaker 3: have been driving the programs in that regard. And that's

1073
00:59:43,600 --> 00:59:45,560
Speaker 3: why some of the return to some of the highest

1074
00:59:45,760 --> 00:59:50,640
Speaker 3: in the US because they recognize that fact. And there's

1075
00:59:50,680 --> 00:59:53,040
Speaker 3: some states that don't recognize and don't do anything about it,

1076
00:59:53,040 --> 00:59:55,840
Speaker 3: and they've got some of the lowest returning plans. You

1077
00:59:55,840 --> 00:59:58,160
Speaker 3: see what I mean. It's economic necessity at the end

1078
00:59:58,160 --> 01:00:03,080
Speaker 3: of the day, and it's fairness that's actually going to

1079
01:00:03,280 --> 01:00:05,160
Speaker 3: move our society forward.

1080
01:00:06,080 --> 01:00:08,560
Speaker 6: In UH twenty nineteen, I want to talk about this.

1081
01:00:08,840 --> 01:00:14,600
Speaker 2: Uh. Obviously there philanthropy philanthrop efforts have been well documented,

1082
01:00:14,920 --> 01:00:17,280
Speaker 2: uh Borehouse philanthropic, philanthropic.

1083
01:00:17,360 --> 01:00:18,400
Speaker 3: I'm sorry, I.

1084
01:00:20,320 --> 01:00:23,280
Speaker 2: Was thinking of philanthropy and philanthropic, so I appreciate you,

1085
01:00:23,480 --> 01:00:27,880
Speaker 2: uh obviously well documented to give back to the senior

1086
01:00:27,880 --> 01:00:28,720
Speaker 2: class of Borehouse.

1087
01:00:29,200 --> 01:00:29,480
Speaker 3: Uh.

1088
01:00:29,520 --> 01:00:31,920
Speaker 2: And then I recently, you know, saw that the parents

1089
01:00:31,920 --> 01:00:34,520
Speaker 2: as well of some of the students uh that their

1090
01:00:34,720 --> 01:00:39,600
Speaker 2: tuitions were their student loan debt taking care of One

1091
01:00:39,600 --> 01:00:41,320
Speaker 2: of the things I heard you speak about, and I haven't.

1092
01:00:41,360 --> 01:00:46,360
Speaker 2: I've never heard it was broadband deserts and how HBCUs

1093
01:00:46,440 --> 01:00:49,800
Speaker 2: are disproportionately affected by having board band deserts. Not a

1094
01:00:49,840 --> 01:00:53,720
Speaker 2: topic that I've heard discussed, you know, nationally or even

1095
01:00:53,840 --> 01:00:58,120
Speaker 2: in you know, amongst communities, about how that affects students

1096
01:00:58,200 --> 01:01:00,080
Speaker 2: long term and how it affects communities and EDGUC.

1097
01:01:00,680 --> 01:01:03,240
Speaker 6: Can you talk about your efforts to try to combat that.

1098
01:01:03,440 --> 01:01:07,680
Speaker 3: Yeah, it's a great question, Earners.

1099
01:01:07,680 --> 01:01:08,000
Speaker 8: What's Up?

1100
01:01:08,080 --> 01:01:11,560
Speaker 2: Today's episode is sponsored by Sunship's Art Scene. Sun Chips

1101
01:01:11,640 --> 01:01:14,280
Speaker 2: believes in the power of diverse voices, but many women

1102
01:01:14,360 --> 01:01:16,960
Speaker 2: and people of color aren't always seen in the art industry.

1103
01:01:17,480 --> 01:01:20,680
Speaker 2: Help Sunships shine a light on underrepresented artists and champion

1104
01:01:20,760 --> 01:01:24,120
Speaker 2: diversity in the art scene. By heading to sun chipsartscene

1105
01:01:24,240 --> 01:01:26,920
Speaker 2: dot com right now, you'll be able to view the

1106
01:01:27,040 --> 01:01:29,520
Speaker 2: art collection on show in Miami Beach and vote for

1107
01:01:29,560 --> 01:01:32,439
Speaker 2: your favorite artists for the chance to win sun Chips

1108
01:01:32,480 --> 01:01:35,280
Speaker 2: snacks for one year. The top three artists that receive

1109
01:01:35,360 --> 01:01:38,280
Speaker 2: the most votes will be commissioned by Sonships to create

1110
01:01:38,400 --> 01:01:41,680
Speaker 2: artwork that will appear on more than twenty million Sonships, bags,

1111
01:01:41,960 --> 01:01:44,960
Speaker 2: and across Sunships advertising in twenty twenty three. All right,

1112
01:01:45,000 --> 01:01:47,280
Speaker 2: so here's your vote in details. Fans across the US

1113
01:01:47,320 --> 01:01:51,400
Speaker 2: can visit sunchipsartscene dot com between now and December eighteenth

1114
01:01:51,440 --> 01:01:54,040
Speaker 2: to view the collection on show in Miami Beach and

1115
01:01:54,120 --> 01:01:58,040
Speaker 2: cast their vote for their favorite art scene artists. Sun

1116
01:01:58,160 --> 01:02:00,680
Speaker 2: Chips will commission the top three artists receive the most

1117
01:02:00,760 --> 01:02:03,280
Speaker 2: votes to create artwork that will appear on more than

1118
01:02:03,440 --> 01:02:06,920
Speaker 2: twenty million sunships, bags, and across sun Chips advertising in

1119
01:02:07,000 --> 01:02:10,360
Speaker 2: twenty twenty three. Consumers can vote once per day for

1120
01:02:10,400 --> 01:02:12,840
Speaker 2: the chance to win sun Chips snacks for one year.

1121
01:02:13,240 --> 01:02:16,000
Speaker 2: There will be one winner each day from now to

1122
01:02:16,040 --> 01:02:18,840
Speaker 2: December eighteenth, twenty twenty two. So head over to sun

1123
01:02:18,960 --> 01:02:23,240
Speaker 2: Chips Art Scene that's see n dot com right now

1124
01:02:23,240 --> 01:02:25,040
Speaker 2: to cast your votes. Good luck, y'all.

1125
01:02:27,840 --> 01:02:32,520
Speaker 3: We've been talking about what is really the fourth Industrial

1126
01:02:32,560 --> 01:02:37,439
Speaker 3: Revolution that's occurring today. Every industry is being digitized, every

1127
01:02:37,440 --> 01:02:40,960
Speaker 3: single one. I mean you just look in our studio

1128
01:02:41,120 --> 01:02:45,360
Speaker 3: here and how much of this equipment is now digital

1129
01:02:45,480 --> 01:02:48,959
Speaker 3: versus what it was even eight years ago, whereas analog right,

1130
01:02:50,560 --> 01:02:55,680
Speaker 3: the capacity to edit okay, the capacity to deliver streaming

1131
01:02:56,600 --> 01:03:01,280
Speaker 3: real time, you know, phase time around the world, your

1132
01:03:01,320 --> 01:03:04,960
Speaker 3: program that wasn't you know something you could do ten

1133
01:03:05,000 --> 01:03:10,240
Speaker 3: years ago, twelve years ago? Okay? Digitizing everything every industry.

1134
01:03:10,320 --> 01:03:15,480
Speaker 3: This is again, this whole Fourth Industrial Revolution is changing

1135
01:03:16,240 --> 01:03:22,320
Speaker 3: the economic landscape of this planet. But yet our HBCUs

1136
01:03:22,520 --> 01:03:26,080
Speaker 3: eighty percent of them are in broadband deserts. How are

1137
01:03:26,080 --> 01:03:29,120
Speaker 3: you going to participate if you don't have access to

1138
01:03:29,200 --> 01:03:32,520
Speaker 3: the tool of progress, the principal tool of progress today

1139
01:03:33,400 --> 01:03:38,120
Speaker 3: in the economy. And that is a big problem. And

1140
01:03:38,160 --> 01:03:39,880
Speaker 3: that's one that we decided to take on, and I

1141
01:03:39,920 --> 01:03:42,120
Speaker 3: decided to take on and bring some partners to take

1142
01:03:42,160 --> 01:03:46,680
Speaker 3: on to go get after this. We have to enable

1143
01:03:47,520 --> 01:03:52,680
Speaker 3: all of our citizenry to participate in this next generation

1144
01:03:52,720 --> 01:03:56,520
Speaker 3: of opportunity. The US today, you own, our borders are

1145
01:03:56,560 --> 01:04:01,560
Speaker 3: basically closed, okay. You know, we've got immigration laws and

1146
01:04:01,880 --> 01:04:06,720
Speaker 3: political conflict that in essence, we are not importing labor anymore.

1147
01:04:08,160 --> 01:04:12,280
Speaker 3: And as we need to grow as society, we need people.

1148
01:04:12,320 --> 01:04:16,200
Speaker 3: I just tell people the biggest issue, the most scarce

1149
01:04:16,280 --> 01:04:19,560
Speaker 3: asset we have on this planet today are software programmers.

1150
01:04:20,000 --> 01:04:22,880
Speaker 3: There's eight billion people on the planet, there's only twenty

1151
01:04:22,880 --> 01:04:29,480
Speaker 3: six million of us who write software for living, and

1152
01:04:29,520 --> 01:04:32,880
Speaker 3: it is that software that is required to digitize every

1153
01:04:33,040 --> 01:04:40,920
Speaker 3: industry on the planet. Automotive, healthcare, finands, banking, all of

1154
01:04:40,960 --> 01:04:45,840
Speaker 3: it is now requiring tools and systems that are digital

1155
01:04:45,880 --> 01:04:50,480
Speaker 3: in nature. But yet one of the greatest infrastructures for

1156
01:04:50,520 --> 01:04:54,560
Speaker 3: training people historically Black college and universities eighty percent of

1157
01:04:54,600 --> 01:04:58,720
Speaker 3: them don't have broadband access where our kids can learn

1158
01:04:58,760 --> 01:05:02,880
Speaker 3: the tools of this craft in a way that they

1159
01:05:02,880 --> 01:05:06,440
Speaker 3: can participate effectively long term. And if we don't get

1160
01:05:06,440 --> 01:05:09,200
Speaker 3: this right now, eight years from now, ten years from

1161
01:05:09,400 --> 01:05:13,240
Speaker 3: twenty years from now, the market of change and opportunity

1162
01:05:13,240 --> 01:05:17,040
Speaker 3: and transformation will have been gone so far that we

1163
01:05:17,080 --> 01:05:19,000
Speaker 3: won't be able to participate in this next way. We

1164
01:05:19,080 --> 01:05:23,200
Speaker 3: didn't get to participate in the great economic opportunity that

1165
01:05:23,280 --> 01:05:28,200
Speaker 3: was America in owning land, Okay, many of our families

1166
01:05:28,240 --> 01:05:34,600
Speaker 3: were unpaid labor okay, which created massive wealth. And then

1167
01:05:34,640 --> 01:05:38,760
Speaker 3: you had gi Bill Home Set Act, Southern Home Set Act.

1168
01:05:38,840 --> 01:05:43,320
Speaker 3: We didn't participate in that proportionately. We didn't get a

1169
01:05:43,400 --> 01:05:47,720
Speaker 3: chance to participate in the asset accretion in real estate

1170
01:05:47,920 --> 01:05:52,960
Speaker 3: because of redlining in those dynamics, and so now here

1171
01:05:52,960 --> 01:05:56,040
Speaker 3: we are Corporate America started to expand, it has taken

1172
01:05:56,120 --> 01:05:58,920
Speaker 3: a while for us to get and we're still not

1173
01:05:58,960 --> 01:06:02,640
Speaker 3: even there. Fair shit year of opportunity to participate as

1174
01:06:02,720 --> 01:06:06,560
Speaker 3: professionals environment and now you're going through the fourth Industrial Revolution.

1175
01:06:06,640 --> 01:06:08,520
Speaker 3: If we don't participate here, it's going to be the

1176
01:06:08,560 --> 01:06:13,120
Speaker 3: same dynamic. That's why it's so essential that we equip

1177
01:06:13,800 --> 01:06:17,560
Speaker 3: our children and our communities with the tools, and they

1178
01:06:17,600 --> 01:06:23,800
Speaker 3: need to insist that those tools be provided and insist

1179
01:06:24,760 --> 01:06:28,880
Speaker 3: that they learn and train and develop ways to participate

1180
01:06:28,880 --> 01:06:33,080
Speaker 3: in this economy, in this digital economy. What percentage of

1181
01:06:33,160 --> 01:06:37,520
Speaker 3: your viewership you think is listening on some digital device

1182
01:06:37,680 --> 01:06:47,440
Speaker 3: or digital ablement. Yeah, your business relies on it, So

1183
01:06:47,520 --> 01:06:51,320
Speaker 3: why shouldn't your community participate in it? And right now

1184
01:06:51,400 --> 01:06:55,040
Speaker 3: those schools are being starved at those resources. You can

1185
01:06:55,120 --> 01:06:57,800
Speaker 3: say conscious, unconscious, whatever it is, but the fact is

1186
01:06:57,840 --> 01:07:00,520
Speaker 3: it is there. That's what we have to do about it. Look,

1187
01:07:00,560 --> 01:07:02,520
Speaker 3: I'm going to do my part, and you guys got

1188
01:07:02,560 --> 01:07:04,520
Speaker 3: to continue to do your part and make sure that

1189
01:07:04,560 --> 01:07:11,400
Speaker 3: your viewership demands that our HBCUs have access to broadband,

1190
01:07:12,480 --> 01:07:15,680
Speaker 3: every one of them, not just the big ones, every

1191
01:07:15,680 --> 01:07:19,080
Speaker 3: one of them, so that our kids could learn and

1192
01:07:19,520 --> 01:07:23,440
Speaker 3: participate and have the ability to now take what they

1193
01:07:23,520 --> 01:07:28,600
Speaker 3: know and deliver business systems solutions into their community to

1194
01:07:28,640 --> 01:07:30,880
Speaker 3: make their small and medium businesses in their community and

1195
01:07:30,920 --> 01:07:33,880
Speaker 3: the education of the kids in our community more effective

1196
01:07:34,240 --> 01:07:35,200
Speaker 3: than what it is today.

1197
01:07:35,840 --> 01:07:37,560
Speaker 5: I want to just follow up on that on the

1198
01:07:37,680 --> 01:07:41,040
Speaker 5: HBCU thing, because you got a lot of headlines when

1199
01:07:41,040 --> 01:07:43,560
Speaker 5: you do more house, when you paid off the student loans.

1200
01:07:43,880 --> 01:07:45,960
Speaker 5: But when we were in LA and I heard you

1201
01:07:45,960 --> 01:07:48,960
Speaker 5: speak about that, and I realized that it wasn't It's

1202
01:07:48,960 --> 01:07:52,560
Speaker 5: a little bit more complicated, which actually led to something else,

1203
01:07:52,600 --> 01:07:53,560
Speaker 5: another initiative.

1204
01:07:53,600 --> 01:07:54,640
Speaker 7: So can you talk about that.

1205
01:07:54,640 --> 01:07:56,919
Speaker 5: Because people just saw he paid off everybody student loans,

1206
01:07:56,960 --> 01:07:59,200
Speaker 5: but that's not actually the full story, right.

1207
01:07:59,120 --> 01:08:04,080
Speaker 3: Yeah, So the next thing, so what I like all things,

1208
01:08:04,120 --> 01:08:06,320
Speaker 3: it's not as easy as you think to pay off

1209
01:08:06,320 --> 01:08:09,720
Speaker 3: somebody's loans. And everybody's like, what are you talking about?

1210
01:08:10,680 --> 01:08:12,800
Speaker 3: Who would have thought? Because yeah, who would have thought? Right,

1211
01:08:12,880 --> 01:08:15,400
Speaker 3: Because if you pay off somebody's loan, either you're giving

1212
01:08:15,400 --> 01:08:17,960
Speaker 3: them a gift or they're receiving a gift. Now they

1213
01:08:18,000 --> 01:08:19,839
Speaker 3: got to pay taxes on it, so there's a burden

1214
01:08:19,920 --> 01:08:23,120
Speaker 3: to them or an increasing burden to you. So you've

1215
01:08:23,120 --> 01:08:27,280
Speaker 3: got to actually architect a system to do that effectively

1216
01:08:27,600 --> 01:08:32,880
Speaker 3: so that doesn't create the burden in that process. What

1217
01:08:33,040 --> 01:08:38,000
Speaker 3: I learned is over sixty percent of African American wealth

1218
01:08:38,880 --> 01:08:44,439
Speaker 3: goes towards servicing student loans. Okay, you come out, You've

1219
01:08:44,439 --> 01:08:46,479
Speaker 3: got sixty eighty one hundred and twenty thousand dollars with

1220
01:08:46,520 --> 01:08:49,679
Speaker 3: the student loans. Now you're paying interest on those loans.

1221
01:08:50,240 --> 01:08:52,519
Speaker 3: Something happens in your family, don't use your job, whatever,

1222
01:08:52,560 --> 01:08:57,840
Speaker 3: And now that compounds and it can be decades before

1223
01:08:57,880 --> 01:09:02,640
Speaker 3: you've paid off those student loans. That inhibit your ability

1224
01:09:03,000 --> 01:09:06,160
Speaker 3: to buy stocks, bonds, a house, invest in a business,

1225
01:09:06,880 --> 01:09:08,720
Speaker 3: you see what I mean. And I was like, well,

1226
01:09:08,760 --> 01:09:13,160
Speaker 3: that's just unconstable because most of the student loans are

1227
01:09:13,160 --> 01:09:17,520
Speaker 3: paying back to the United States government. Yeah, African Americans

1228
01:09:17,600 --> 01:09:19,400
Speaker 3: paying money back to United States government to pay our

1229
01:09:19,439 --> 01:09:21,639
Speaker 3: student loans. How y'all feel about that?

1230
01:09:21,640 --> 01:09:22,240
Speaker 7: That's crazy?

1231
01:09:25,000 --> 01:09:28,360
Speaker 3: Crazy? Yeah, y'all should think about that, right, talk about that. Right?

1232
01:09:28,840 --> 01:09:32,600
Speaker 3: So then I thought, well, what's a better way to

1233
01:09:32,600 --> 01:09:36,240
Speaker 3: do it? This is what's the better equilibrium system. The

1234
01:09:36,360 --> 01:09:40,360
Speaker 3: better equilibrium system is to create a fund it's called

1235
01:09:40,360 --> 01:09:45,880
Speaker 3: the Student Freedom Initiative. We raise money, I put in

1236
01:09:45,920 --> 01:09:50,479
Speaker 3: a bunch of money, and now these students borrow from

1237
01:09:50,520 --> 01:09:56,839
Speaker 3: the fund. Okay, let's make sure it fits our condition.

1238
01:09:58,000 --> 01:10:04,639
Speaker 3: Our condition often is that we often aren't paid as

1239
01:10:04,720 --> 01:10:08,920
Speaker 3: much as corresponding white students. So let's make sure that

1240
01:10:08,960 --> 01:10:12,480
Speaker 3: the interest rate is below. Parent plus loans at a minimum,

1241
01:10:12,880 --> 01:10:18,519
Speaker 3: at a minimum and every now and you have life interruptions. Okay, Well,

1242
01:10:18,520 --> 01:10:22,080
Speaker 3: if there's a life interruption, you know, parent ailing, we've

1243
01:10:22,080 --> 01:10:24,000
Speaker 3: got to go back take care of that parent. Then

1244
01:10:24,000 --> 01:10:26,519
Speaker 3: we can actually stop those payments in that period of time.

1245
01:10:27,000 --> 01:10:29,760
Speaker 3: Parent plus now you're gonna pay whether you work it

1246
01:10:29,880 --> 01:10:32,640
Speaker 3: or not. And then compounds and all that, so you

1247
01:10:32,640 --> 01:10:38,040
Speaker 3: can stop it during that period of time. And if

1248
01:10:38,439 --> 01:10:40,840
Speaker 3: you decide to go work in a community to be

1249
01:10:40,880 --> 01:10:45,880
Speaker 3: a teacher, like you work right, okay, and you're making

1250
01:10:45,920 --> 01:10:48,480
Speaker 3: below a certain amount, but you're doing good for the community.

1251
01:10:48,760 --> 01:10:52,200
Speaker 3: You do that for twenty years and that's forgiven. But

1252
01:10:52,280 --> 01:10:54,080
Speaker 3: rather than pay that money back to the government, it

1253
01:10:54,080 --> 01:10:57,200
Speaker 3: pays back into the fund, and then that fund can

1254
01:10:57,280 --> 01:11:01,600
Speaker 3: relend that capital and that's a virtuous cycle. Okay. So

1255
01:11:01,600 --> 01:11:04,880
Speaker 3: that's a Student Freedom Initiative is okay, And so that

1256
01:11:05,040 --> 01:11:08,800
Speaker 3: our students can borrow from this fund and they pay

1257
01:11:08,840 --> 01:11:11,679
Speaker 3: back into that fund, they can be reborrowed. So now

1258
01:11:11,720 --> 01:11:14,760
Speaker 3: you're taking care of your own community through your work

1259
01:11:14,880 --> 01:11:17,439
Speaker 3: in that regard, that's what it is.

1260
01:11:18,840 --> 01:11:21,960
Speaker 5: And the money goes back to the next generation of students.

1261
01:11:22,040 --> 01:11:25,639
Speaker 7: Right, those are recycled, right, situation Right.

1262
01:11:26,960 --> 01:11:28,840
Speaker 2: I want to talk about an initiative, and I think

1263
01:11:28,920 --> 01:11:34,480
Speaker 2: it's pretty amazing that the two percent solution. Yeah, whereas

1264
01:11:34,520 --> 01:11:38,160
Speaker 2: correct me if I'm wrong, but banks, right the determined

1265
01:11:38,200 --> 01:11:40,760
Speaker 2: on the profits that they make off their investments, they

1266
01:11:40,800 --> 01:11:42,640
Speaker 2: reallocate that back into their communities.

1267
01:11:42,680 --> 01:11:43,200
Speaker 3: They should.

1268
01:11:43,520 --> 01:11:45,800
Speaker 6: Well, I'll let you talk about the initiative.

1269
01:11:46,120 --> 01:11:47,760
Speaker 3: But that's the point is it's like, you know, the

1270
01:11:47,960 --> 01:11:52,599
Speaker 3: average American individual gives about two percent of charity, you know,

1271
01:11:52,640 --> 01:11:58,559
Speaker 3: to charity every year, and African Americans actually will higher

1272
01:11:58,600 --> 01:12:01,800
Speaker 3: and people call it will higher. And I said, well,

1273
01:12:02,240 --> 01:12:04,800
Speaker 3: if you just take that and apply that to corporations,

1274
01:12:05,439 --> 01:12:08,599
Speaker 3: so beyond just the dollars, it's the know how, Okay,

1275
01:12:08,800 --> 01:12:11,000
Speaker 3: So take two percent of your earnings, two percent of

1276
01:12:11,000 --> 01:12:13,280
Speaker 3: your profits, whatever it is, and now use that to

1277
01:12:13,560 --> 01:12:18,080
Speaker 3: enable the equitable opportunity. And listen to the words equable

1278
01:12:18,120 --> 01:12:24,519
Speaker 3: opportunity in the communities that support your business. Right, if

1279
01:12:24,520 --> 01:12:28,040
Speaker 3: you are in a healthcare business, for instance, so why

1280
01:12:28,080 --> 01:12:32,360
Speaker 3: not take that and invest that in telemedicine solutions for

1281
01:12:32,479 --> 01:12:36,240
Speaker 3: communities don't have access. Right. If you're in the banking business,

1282
01:12:36,320 --> 01:12:39,720
Speaker 3: invest that in digital banking in the communities that don't

1283
01:12:39,760 --> 01:12:42,880
Speaker 3: have banks. My community that I grew up in didn't

1284
01:12:42,920 --> 01:12:47,439
Speaker 3: have a branch bank. Okay, if you're in the supermarket business,

1285
01:12:47,560 --> 01:12:50,920
Speaker 3: two percent of that to go to providing access to

1286
01:12:51,160 --> 01:12:53,920
Speaker 3: high quality foods low costs. In mention, my community I

1287
01:12:53,960 --> 01:12:57,120
Speaker 3: grew up in did not have a supermarket. Still doesn't

1288
01:12:58,160 --> 01:13:00,320
Speaker 3: think about that. Right, We had to drive across down

1289
01:13:00,439 --> 01:13:02,920
Speaker 3: or go to local communience store where the prices are

1290
01:13:02,960 --> 01:13:06,040
Speaker 3: three four five X. You see what I mean. So

1291
01:13:06,280 --> 01:13:09,920
Speaker 3: that's what the initiative is designed to do, is to

1292
01:13:10,080 --> 01:13:15,560
Speaker 3: bring a consciousness to how you can actually enable citizenry

1293
01:13:15,680 --> 01:13:21,800
Speaker 3: to have opportunities to participate in that case, in our

1294
01:13:21,840 --> 01:13:25,960
Speaker 3: economy as full citizens. That's what it's designed it.

1295
01:13:27,000 --> 01:13:28,559
Speaker 6: I mean, it feels pretty simple, right.

1296
01:13:29,240 --> 01:13:29,920
Speaker 3: Makes sense to me.

1297
01:13:30,479 --> 01:13:33,160
Speaker 5: Oh, missus Smith, you've been a gentleman and a scholar.

1298
01:13:33,240 --> 01:13:35,160
Speaker 5: Thank you for joining us. Anything that you would like

1299
01:13:35,200 --> 01:13:38,000
Speaker 5: to leave the audience with any last words or anything

1300
01:13:38,040 --> 01:13:38,400
Speaker 5: that you will like.

1301
01:13:38,560 --> 01:13:41,000
Speaker 3: I will leave you all with something. Make sure you

1302
01:13:41,120 --> 01:13:45,320
Speaker 3: continue to expand your voice. And we talked about this

1303
01:13:45,560 --> 01:13:50,160
Speaker 3: earlier this morning, the importance of you thinking about bringing

1304
01:13:50,280 --> 01:13:55,360
Speaker 3: scale to this platform and leave behind so that the

1305
01:13:55,479 --> 01:13:58,240
Speaker 3: youth that hear you or the parents that hear you

1306
01:13:58,280 --> 01:14:02,840
Speaker 3: can point their youth, do your messages, your tools, and

1307
01:14:02,920 --> 01:14:07,040
Speaker 3: bring build systems for people to get more financially literate

1308
01:14:07,920 --> 01:14:13,200
Speaker 3: and enabled to be more effective in achieving their goals,

1309
01:14:13,520 --> 01:14:18,040
Speaker 3: which most people want financial independence and some freedom in

1310
01:14:18,120 --> 01:14:21,120
Speaker 3: their lives. Uh. And you all have a wonderful and

1311
01:14:21,160 --> 01:14:23,840
Speaker 3: great platform and I sincerely mean that, and I congratulate you.

1312
01:14:24,479 --> 01:14:28,880
Speaker 3: Just continue to think about how you scale it effectively inefficiently.

1313
01:14:29,520 --> 01:14:31,599
Speaker 3: So good luck on that. And if I can never

1314
01:14:31,640 --> 01:14:35,200
Speaker 3: be helpful, you know, just a text away. Sure.

1315
01:14:35,280 --> 01:14:36,800
Speaker 5: Well, we tried to get you out of We had

1316
01:14:36,800 --> 01:14:40,719
Speaker 5: a big thing called investments last year and Tyler Perry

1317
01:14:40,920 --> 01:14:43,040
Speaker 5: and Steve harveybody keynotes you're trying to get you, but

1318
01:14:43,800 --> 01:14:45,240
Speaker 5: you out of I think you're out of the country

1319
01:14:46,040 --> 01:14:49,080
Speaker 5: on vacation. I remember, yeah, but let me know, just

1320
01:14:49,200 --> 01:14:52,800
Speaker 5: be this year we can good look forward to look

1321
01:14:52,880 --> 01:14:56,800
Speaker 5: for seriously, I just wanted to thank you for your time,

1322
01:14:57,320 --> 01:14:59,800
Speaker 5: and I'm sure we'll run into well, we're actually gonna

1323
01:14:59,840 --> 01:15:00,759
Speaker 5: see next next.

1324
01:15:00,600 --> 01:15:04,519
Speaker 2: Week, see you next week, you see us together.

1325
01:15:04,720 --> 01:15:07,160
Speaker 3: Yeah, Well, thank you guys. Keep doing what you're doing.

1326
01:15:07,240 --> 01:15:07,920
Speaker 3: I appreciate it.

1327
01:15:07,960 --> 01:15:11,559
Speaker 2: This is definitely off the bucket list of people that

1328
01:15:11,640 --> 01:15:14,519
Speaker 2: we wanted to sit down with. I told this when

1329
01:15:14,520 --> 01:15:16,160
Speaker 2: I woke up this morning. I'm like, I can't believe

1330
01:15:16,240 --> 01:15:19,200
Speaker 2: this is actually happening today. So thank you for blessing

1331
01:15:19,280 --> 01:15:21,840
Speaker 2: us with the knowledge and all your service as well

1332
01:15:22,280 --> 01:15:22,799
Speaker 2: my pleasure.

1333
01:15:22,920 --> 01:15:25,439
Speaker 3: Yeah, it's a it's a blessing to be here with you, brothers.

1334
01:15:25,479 --> 01:15:27,840
Speaker 3: So keep doing what you're doing. Thank you you having guys.

1335
01:15:27,920 --> 01:15:31,600
Speaker 3: That's a wrap, all right, guys, did you record it?

1336
01:15:35,720 --> 01:15:40,519
Speaker 4: My graduates from my school being false bad drop bag

1337
01:15:40,720 --> 01:15:44,000
Speaker 4: drop my drop bad drop.

1338
01:15:54,520 --> 01:15:58,200
Speaker 1: An illegal alien from Guatemala charged with raping a child

1339
01:15:58,200 --> 01:16:02,000
Speaker 1: in Massachusetts and MS thirteen gang member from Al Salvador

1340
01:16:02,240 --> 01:16:06,400
Speaker 1: accused of murdering a Texas man of Venezuelan charged with

1341
01:16:06,479 --> 01:16:10,360
Speaker 1: filming and selling child pornography in Michigan. These are just

1342
01:16:10,439 --> 01:16:14,200
Speaker 1: some of the heinous migrant criminals caught because of President

1343
01:16:14,240 --> 01:16:17,840
Speaker 1: Donald J. Trump's leadership. I'm Christy nom the United States

1344
01:16:17,840 --> 01:16:22,639
Speaker 1: Secretary of Homeland Security. Under President Trump, attempted illegal border

1345
01:16:22,680 --> 01:16:26,240
Speaker 1: crossings are at the lowest levels ever recorded, and over

1346
01:16:26,280 --> 01:16:29,519
Speaker 1: one hundred thousand illegal aliens have been arrested. If you

1347
01:16:29,600 --> 01:16:33,439
Speaker 1: are here illegally, your next you will be fine nearly

1348
01:16:33,520 --> 01:16:37,519
Speaker 1: one thousand dollars a day, imprisoned, and deported. You will

1349
01:16:37,560 --> 01:16:41,200
Speaker 1: never return. But if you register using our CBP home

1350
01:16:41,280 --> 01:16:44,639
Speaker 1: app and leave now, you could be allowed to return legally.

1351
01:16:45,000 --> 01:16:49,759
Speaker 1: Do what's right. Leave now. Under President Trump, America's laws,

1352
01:16:49,920 --> 01:16:52,360
Speaker 1: border and families will be protected.

1353
01:16:52,439 --> 01:16:54,559
Speaker 3: Sponsored by the United States Department of Homeland Security,