Vista’s Robert Smith says investing in DEI businesses vitally important in a bear market
Robert F. Smith, chairman and CEO at Vista Equity Partners, said investing in businesses and managers that emphasize diversity, equity and inclusion remains vital, especially in a bear market.
The billionaire investor, who spoke with CNBC’s Frank Holland at the Disruptor 50 Summit, said that venture capital and private equity funding should continue to expand to minority-owned businesses. The recent drop in venture capital funding, due to growing recession fears, has disproportionately hit African American, Latinx business owners and founders, he said.
“They didn’t get their fair share of opportunity in gaining access to capital during the massive bull market expansion, and now they’re going through a bit of a bear market contraction. They’re seeing some outsized reductions in their funding,” Smith said.
“And I think that is a mistake on behalf of a lot of the VC community. The communities in America rely on everyone in many cases participating economically, and enabling these citizens to participate through venture funding and other forms of access to capital will only benefit the U.S.,” he continued.