Introducing Not Boring Capital: Investing in Companies with Stories to Tell

Introducing Not Boring Capital: Investing in Companies with Stories to Tell

Not Boring Capital is an $8 million venture fund that focuses on investing in companies with compelling narratives. The fund primarily targets Seed through Series B companies, occasionally making pre-seed and growth-stage investments. The founder, Packy McCormick, believes that his writing skills have made him a better investor, and vice versa. This unique flywheel effect sets Not Boring Capital apart from other venture firms.

Fintech Dominates Not Boring Capital's Portfolio

When it comes to verticals, fintech takes the lead in Not Boring Capital's investments. With a total of six investments and $525k invested, fintech is the winner in terms of both numbers and dollars. Not Boring Capital focuses on investing in fintech companies that leverage technology in the investment field.

Core, Explore, and Growth Investments

Not Boring Capital adopts a three-pronged investment approach. The majority of their investments, about 75% of the total dollars invested, fall under the core category. These investments have the potential to generate significant returns for the fund. The explore category consists of smaller investments made to secure a seat in the next round or increase deal flow. While these investments have high upside potential, they are not expected to individually return the fund. Finally, the growth category focuses on later-stage or safer investments that have a lower ceiling but a higher floor. This category aims to collectively return the fund once.

The Power of Compound Growth

When comparing Exxon, the most valuable company in 2011, and Apple, the current most valuable company, it's evident that the latter's market cap has increased nearly sixfold. This highlights the power of compound growth and the potential for exponential returns. Not Boring Capital aims to leverage this growth potential by investing in companies that have the potential to become market leaders and generate significant returns over time.

The Strength of Community

Not Boring Capital prides itself on having a community of 60,000 people who actively engage with their portfolio companies. The synergy between Not Boring Capital's portfolio companies and its readers creates a powerful network effect. This community-driven approach helps drive success for the portfolio companies and strengthens the overall ecosystem.

The Desire for Intellectual Stimulation

Packy McCormick, the founder of Not Boring Capital, has always expressed a desire for intellectual stimulation. His three main interests include meeting and talking to smart people, reading and writing, and investing. Not Boring Capital allows Packy to pursue all three of these passions. By engaging with the startup community, writing about his insights, and making strategic investments, Packy is able to combine his interests and make a meaningful impact.

Social Networking 2.0: Redefining Online Connections

Social Networking 1.0, represented by platforms like Facebook, was an attempt to digitize and replicate offline connections. However, the limitations of these platforms became evident as conversations were constrained by physical boundaries and the need to present a single identity. Social Networking 2.0, on the other hand, embraces the unique properties of the digital world and allows individuals to express different facets of their personalities.

The Value of Interest Graphs and Identities

What sets Twitter apart is not just its app or features but the interest graph it creates. Twitter identities and the interactions between them provide valuable insights and understanding. By separating identities on Twitter, individuals can curate their experiences and have more meaningful interactions. The internet allows individuals to be whoever they want to be, and Social Networking 2.0 embraces this freedom.

Embracing Multiple Identities

Having one identity for the entire online world may not be desirable for everyone. Facebook's focus on a single identity is great for advertising purposes, but it conflicts with the desire of many individuals to express different parts of themselves in different contexts. Social Networking 2.0 recognizes the need for multiple identities and provides a platform for individuals to be their authentic selves in various settings.

Finding Common Ground

One of the challenges of forcing everyone to present their "whole selves" is the difficulty in finding common ground. Everyone has aspects that may be off-putting or annoying to others. Social Networking 2.0 allows individuals to connect with others who have different perspectives and see the world in unique ways. This diversity of viewpoints fosters deeper connections and a better understanding of the world.

Actionable Advice:

1. Embrace your multiple identities: Don't be afraid to express different aspects of yourself in different contexts. Social Networking 2.0 allows you to curate your online presence and connect with like-minded individuals.

2. Engage with communities: Join communities that align with your interests and actively participate in discussions. This will not only expand your knowledge but also foster meaningful connections with others.

3. Invest in companies with compelling narratives: Look for investment opportunities in companies that have stories to tell. These companies are more likely to resonate with consumers and have the potential for exponential growth.

In conclusion, Not Boring Capital is disrupting the traditional venture capital landscape by investing in companies with compelling narratives. The fund's focus on fintech and its unique investment approach set it apart from other firms. Additionally, Social Networking 2.0 is redefining online connections by embracing multiple identities and allowing individuals to express themselves authentically. By following the actionable advice provided, individuals can make the most of these trends and enhance their experiences both professionally and personally.