Darryl Finkton Jr. closes $200M to go from asset management to poverty eradication – TechCrunch

Darryl Finkton Jr. closes $200M to go from asset management to poverty eradication – ClearTips

Daryl finkton jr There is a man on a mission.

They believe that there is enough money to help end poverty in the world. But only if it is distributed differently than it is today.

Earlier this year, the investor gave up his career in asset management to start a $ 1 billion venture fund aimed at eradicating poverty. This is an ambitious goal, but Finkton Jr. has a plan. And now they have raised an initial nearly $ 200 million to help implement that plan.

Finkton aims to raise $ 1 billion with the fund to provide venture capital to entrepreneurs from underprivileged and underrepresented backgrounds, who are working to solve the problems facing their communities. He is managing the fund, and has invested $ 500,000 of his capital to launch it.

Finkton grew up in housing projects in Indianapolis, Indiana and went to Harvard to study neurobiology. He then attended Oxford as a Rhodes Scholar and got involved in economic development before founding a VC firm focused on healthcare technology investment. Recently, Finkton worked as a partner in a hedge fund.

But his upbringing was never far from his mind, and Finkton knew he wanted to do more to help those who do not have the same opportunities or access to others.

“In my house, we often struggled to make ends meet and keep food on the table. All the members of the family I care to count have died from the formidable conditions that cause extreme poverty, “Finkton recalls.” Although I was able to overcome obstacles and eventually graduated from both Harvard and Oxford Having attained the title, I am well aware of the countless hardships when your next meal is not promised. “

So earlier this year, through his EPMT (& Poverty. Make Trillions) fund, he helped as a hedge fund partner to promote the adoption of a universal basic income to end poverty in America with the help of venture dollars. I quit my job.

He said that all the fund profits would be reinvested to help the poorest communities in the country.

This summer, he led a 60-day tour of several dozen cities, towns and Native American reservations with the “Poor Zip Code in America” ​​with the goal of increasing support for a universal basic income in the Federal Poverty Guidelines (UBI). Planned to do. @FPG). (He also intends to make a documentary of the process).

In addition to supporting state and local efforts, Finkton is also emphasizing federal legislation that guarantees a universal basic income at or above federal poverty guidelines.

So far, EPMT funds have invested in 15 companies, including Elpidatec, a telehealth platform intended to treat opioid addiction; Commissary club, a job site and social network for people with criminal records; Snowball Wealth, which offers free student loan schemes to help people deal with debt; And Maya Life Sciences, which is working to develop evidence-based, culturally informed group interventions for underrepresented and vulnerable populations.

Finkton believes that America is spending “trillions” on maintaining the poverty cycle through various programs such as welfare. Instead, he wants to empower people in poverty to work in their own way.

“These programs treat the symptoms of poverty, not the root cause – which has no money,” he told ClearTips.

Finkton states that a universal basic income on the Federal Poverty Guidelines (UBI @ FPG) can end financial poverty.

“The economic cost of childhood poverty alone is $ 1 trillion per year. If we provide UBI @ FPG to every American and refund the tax on that income for those who are already well above the federal poverty guideline , Then the net cost for poverty alleviation falls below $ 200 billion, ”Finkton says. “This is an annual return of $ 800 billion. In 10 years, UBI @ FPG will generate a return of over $ 8 trillion, save 1.7 million lives, and lift 34 million Americans out of poverty.

There are some who might argue that the low-income population will use any money they get to buy drugs or alcohol.

Finkton believes this is the opposite.

He told ClearTips, “We have done a lot of pilots and when someone is so poor, they can’t afford food, clothing or shelter, when they get the money, they do the same thing first.” “These communities often use drugs as a way of coping,” he said. “Once you give them hope and opportunity, they are not as depressed and in fact there is less use of alcohol, drugs and tobacco.”

Chad Doe, founder and CEO of EPMT portfolio company Maya Life Sciences, tells ClearTips that his biotech startup initially aims to test the potential of psychedelics to help people with substance abuse issues facilitate group clinical trials. To get help through. The ultimate goal of the Los Angeles-based three-year-old company is to get FDA approval so that people with addictions globally have more options. Those clinical trials, he said, will be conducted mostly by women of color and include participants who are mostly white or not of European descent.

In many cases, he said, trial participants and investigators are “not representative of the real world.”

Doe also believes that more money is spent on surveillance, policing and sentencing tactics that actually help people of color, low-income people, rather than help them emerge from their situations And targets and affects non-citizens.

“The war on drugs is really a war on the poor,” he said. “At Maia, we are putting women and under-served populations at the center of research and development to find effective treatments for substance abuse disorders.”

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