Introducing Not Boring Capital: Scaling Businesses and Defining Problems

Introducing Not Boring Capital: Scaling Businesses and Defining Problems

Not Boring Capital is an $8 million venture fund that invests in companies with stories to tell, and helps tell them. The fund focuses mainly on Seed through Series B companies, with occasional investments in pre-seed and growth-stage companies. The founder, Packy McCormick, believes that his skills as both an investor and a writer complement each other, creating a powerful flywheel effect.

Fintech is the leading vertical for Not Boring Capital. With six investments totaling $525k, fintech companies have proven to be a promising area for growth. However, the fund also explores other sectors, making smaller investments to secure a seat in the next round or increase deal flow. These exploratory investments have high upside potential but may not individually return the fund. They make up about 5-10% of the total invested dollars. Additionally, the fund allocates about 20% of invested dollars to safer, later-stage investments with a lower ceiling but a higher floor. Collectively, these growth investments should be able to return the fund once.

As we look at the success stories of companies like Apple, which has seen its market cap increase nearly sixfold since 2011, it becomes clear that scaling businesses is a crucial goal. Not Boring Capital believes in the power of a large network and community. With approximately 60,000 people connected to the fund through its portfolio companies and readers, the potential for mutual support and growth is enormous.

Packy McCormick, the founder, has always had three passions: meeting and talking to smart people, reading and writing, and investing. Not Boring Capital allows him to pursue these passions simultaneously. The fund's goal is not just to invest in companies but also to engage with the broader community, share knowledge, and create a positive feedback loop.

Defining problems is a critical responsibility for product managers, as highlighted by the experiences of SmartNews, a popular news aggregation app. The company believes in solving one significant and challenging problem rather than tackling multiple easy ones. By defining the problem clearly and creating a shared belief that solving it is essential, a positive spiral of growth can be achieved.

SmartNews practices hypothesis testing throughout its history. For example, the company would formulate hypotheses about how the advertising industry would change three months after the financial crisis in 2008. This approach demonstrates the importance of constantly evaluating the market and adapting to new circumstances.

When communicating, SmartNews follows a structured approach: Why, How, and What. This framework ensures that the message is clear and effectively conveys the purpose and method behind a particular action or decision.

In conclusion, Not Boring Capital and SmartNews both emphasize the importance of defining problems and having a clear vision. By investing in companies with compelling stories and helping them tell those stories, Not Boring Capital aims to scale businesses and create a supportive community. SmartNews, on the other hand, focuses on solving one significant problem and constantly testing hypotheses to adapt to changing market conditions. These approaches, combined with effective communication strategies, contribute to the success and growth of both organizations.

Actionable Advice:

1. Define the problem: Whether you're a product manager or an investor, clearly defining the problem you're solving is crucial. This clarity will guide your decision-making and help create a shared belief in the solution.

2. Engage with the community: Building a network and fostering a supportive community can benefit both your personal growth and the success of your business. Look for opportunities to connect with like-minded individuals and share knowledge.

3. Constantly adapt and test hypotheses: The market is constantly evolving, and being able to adapt and test hypotheses is essential for long-term success. Be open to new ideas, evaluate the market regularly, and adjust your strategies accordingly.

By incorporating these actionable advice into your approach, you can enhance your problem-solving abilities, create a strong community, and adapt to changing market dynamics.