Rapid Response: Don’t wait for the system, build it!, w/Genius Guild’s Kathryn Finney

Community Returns

Kathryn Finney, CEO of Genius Guild, emphasizes the importance of community-driven returns, highlighting how investing in black entrepreneurs benefits both the community and investors. She argues that traditional investing often lacks trust in communities, particularly black and Latinx ones, despite their proven resourcefulness in managing money 1. Finney explains that Genius Guild invests in entrepreneurs who live and work within their communities, creating wealth and opportunities for others 1.

The return goes back to the community, because we trust that the community knows what's best to do with the money.

--- Kathryn Finney

This approach not only generates financial returns but also builds role models and equity within these communities 2.

   

Empowering Women

Empowering black women entrepreneurs is a core mission for Finney, who has launched initiatives like the Duney Fund to provide micro investments. These grants, though small, have had significant impacts, enabling recipients to pivot and thrive during challenging times 3. Finney's efforts have shown that even minimal financial support can lead to substantial business growth and community impact 4.

The goal was to get you the money quickly so that you can use it in whatever way you needed to use it.

--- Kathryn Finney

Her work underscores the importance of recognizing and supporting the entrepreneurial potential of black women, who are often overlooked in traditional venture capital landscapes 3.

   

Valuation Challenges

Finney addresses the valuation dilemmas faced by black entrepreneurs, noting that inflated valuations can lead to misconceptions about business viability. She explains that the rush to invest in black founders post-2020 led to unrealistic valuations, particularly for pre-revenue companies 5. This has created challenges for entrepreneurs who were not informed about growth metrics and expectations 5.

It's such a weird quagmire for a lot of entrepreneurs.

--- Kathryn Finney

Finney stresses the responsibility of investors to provide clear guidance and support, ensuring that entrepreneurs have the runway to succeed 6.