Financial literacy vs. financial action: 10 questions with Troutwood founder Gene Natali

Natali founded Pittsburgh-based Troutwood in 2019 after years as a VP with institutional investment manager CS McKee (and after writing the book “The Missing Semester,” a financial guide for recent graduates). The company develops financial planning and investment education apps and tools for individuals and institutions.

RustBuilt Pittsburgh caught up with the entrepreneur and financial analyst this fall to discuss growing the company, his “lightbulb moment” and the local support he’s gotten along the way.

Read his full Q&A below. The interview has been edited for length and clarity.

1. How did you come to do this work and why is it so important to you personally?

I have been involved in financial literacy education in the US for more than 10 years now. Over that time, awareness and momentum around the societal need for financial education has rapidly expanded. Currently, 22 states require a financial literacy course for high school graduation.  One day, all 50 will. Next Gen Personal Finance has an excellent bill tracker if you are interested in following that journey.

Financial stress is now the #1 source of stress at home, at work and on our college campuses. This statistic serves as a reminder that personal finance is and must be bigger than a letter grade.  Financial action, the application of financial literacy education, is the critical next step.  We intentionally built Troutwood to be that action step.

2. What was your lightbulb moment for Troutwood?

In 2019 I was invited to the UN headquarters in New York City for a meeting with representatives from CFA Institute and a task force from the United Nations. We talked about ways to reduce global poverty through financial empowerment. The meeting was thoughtful, compassionate and candid.

As we were walking out, one of the folks in attendance pulled me aside and said, “The world needs this.” That moment provided the inspiration and courage to start Troutwood.

3. What is the elevator pitch for Troutwood?

A budget shows where you’ve been, a financial plan shows where you’re going. With Troutwood, individuals have a financial plan for life, showing where to go, and how to get there.

We reach individuals through a B2B enterprise model. Our team works closely with financial advisors, banks, credit unions, retirement plans, businesses and universities to understand the wants and needs of their respective beneficiaries, customers, employees, students and stakeholders.

4. Talk through your strategy in building a team around you.

Early in the Troutwood journey, Jay Katarincic, managing director at Draper Triangle and Partner at Magarac Venture Partners, shared a quote that I wrote down: “Great people make great products. Great products make great companies.” That comment resonated and stuck with me.

Our team at Troutwood is exceptional by every measure. We’ve hired great people. We’ve built a great product.

5. What has surprised you most about starting your own business?

How willing people are to help! Pittsburgh is a remarkable community. The number of folks who have made time to meet for coffee, talk by phone or Zoom, and simply share their knowledge, advice and opinions help make this a special place to start and run a business, and Troutwood is better because of it.

Drew Kicinski, director of global pensions and benefits at PPG, has demonstrated enormous compassion. His advice and feedback have been a point of inspiration for our team, and the good that is in corporate America. Drew cares deeply about the people at PPG, and it shines through in his words.  Internally we frequently reference building financial tools for the “paint floor worker.”

John Kaye, COO at the University of Pittsburgh, helped us to early on validate the importance of financial wellness in the workplace. Al Trezza at BNY Mellon is a good friend who has for the past 10 years helped grade collegiate financial plans for CFA Society Pittsburgh. Al shared best practices with our team and was candid with feedback on product demos.

Sarah Cullen and the Panthers Forward team at University of Pittsburgh, Amy Faber; treasurer at Duquesne University; Eric Harlovic, J.M. Ruscetti, Bob Fragasso, Greg Furer, Erin Weber, Reed Natali, Sunny Erdman. The list of folks who have been selfless with their time and shared expertise is far longer than this space allows for, and I am deeply grateful.

6. Talk through one of your daily rituals.

I start each morning with an audiobook or podcast and a 30-minute walk with my 6-year-old chocolate lab, Kona. She’s been a part of the Troutwood journey from day one, often falling asleep beside my desk, late into the evening.

7. What is a recent challenge you’ve faced as an entrepreneur and how did you overcome it? What lesson(s) did you take away from it?

Miscommunication and/or misunderstandings have consequences, financial and other. We’ve learned this lesson, and strengthened our processes because of it. The importance of concise and effective communication can’t be overstated.

To be actionable, communication must be affirmed, and in the world of software development it must also be documented. Mistakes are a byproduct of innovation and disruption. Preventing them is impossible; minimizing and managing mistakes is not.

8. What does the next year look like for Troutwood?

At Troutwood, three principles guide our product design and development:

1. Simple
2. Secure
3. Scalable

The order of these principles are intentional, and as a team, we have been laser focused on the first two. We are now working on the third. Troutwood’s enterprise subscription portal will launch in early 2024, allowing for self-service customer enrollment and operation.

9. What is a key piece of advice you’ve received that you’d want to share with other founders?

Do big things quietly.

10. How can our regional startup community help your efforts?

Pittsburgh is special, and there is nowhere in the world better positioned for what we are building at Troutwood. The city has strong bones in both finance and technology. Yes, I’m biased. Seven of our team members attended Carnegie Mellon University and four attended the University of Pittsburgh (where I also teach). We work closely with CMU’s MSE and MHCI programs, and our first two enterprise customers were Pittsburgh based!

That said, we receive far more incoming phone calls from out-of-town investors than we do from Pittsburgh-based investors. All else equal, I’d sure like to partner and work with folks who have that same pride in this region and a shared vision of the excellence it is capable of producing.

Great people make great products. Great products make great companies. Great regions, like Pittsburgh, make this combination possible. Thank you to all who believe in what we are doing.