The most value an investor can provide is to educate people on two things: how to raise money and how to accelerate their business. That way you teach them how to fish so they can continue to eat. It seems like the founders who raise money know the game, and this knowledge passed to them through their network. They do it over and over again, and the cycle continues. I started The Kemet Institute in 2001 to teach financial literacy to the underserved (people who didn’t have access to financial literature) including over 1000 inner-city kids, churches, professionals, athletes and entertainers. I consider this work more important than investing in a new company, because I can help create an ecosystem of investors and founders who benefit mutually.
I recently saw rapper Offset cite Nas as an inspiration to his investing, which validated my work. I also received an email from a 6th grader I taught that said, “ I was a participant in one of your finance courses at Middle School. Currently, I am a sophomore business major in college. I was reaching out to you because I really enjoyed your course and you even inspired me to major in Finance and even start my own stock portfolio.”
This is what investors should do, educate, inspire…and of course cut checks!