ODX Investment Memo: Exploring the Intersection of Silicon Valley and Not Boring Capital

ODX Investment Memo: Exploring the Intersection of Silicon Valley and Not Boring Capital

Silicon Valley has long been hailed as the epicenter of technological innovation and entrepreneurship. It represents a mindset that thrives on unconventional ideas and embraces failure as a stepping stone to success. In this digital age, the influence of Silicon Valley extends far beyond its physical boundaries, as it has become a virtual hub of knowledge and collaboration.

Technology has emerged as a key driver of global economic growth, fueling job creation and improving the quality of life. From tackling climate change to developing vaccines, technology has played a vital role in addressing some of society's most pressing challenges. It is through technology that humanity primarily progresses, and this progress is often spearheaded by startups.

Enter Not Boring Capital, an $8 million venture fund that seeks to invest in companies with compelling stories and helps amplify their narratives. This fund primarily focuses on seed through Series B investments, although it occasionally makes pre-seed and growth-stage investments. The founder, Packy McCormick, believes that his dual roles as an investor and writer create a powerful flywheel that enhances his abilities in both domains.

Fintech emerges as the leading vertical for Not Boring Capital, with the fund making six investments totaling $525k in this sector. However, the fund also diversifies its investments across various other industries, recognizing the potential for substantial returns. There are three investment approaches employed by Not Boring Capital: Core, Explore, and Growth.

The Core strategy entails investing in companies that have the potential to generate significant returns, potentially even returning the entire fund in the best-case scenario. This approach accounts for approximately 75% of the fund's investment portfolio. On the other hand, the Explore strategy involves smaller investments aimed at securing a seat in subsequent funding rounds or increasing deal flow. While these investments may have high upside potential, they are too small individually to expect fund-level returns. Explore investments typically comprise 5-10% of the total invested dollars. Lastly, the Growth strategy focuses on safer, later-stage investments that offer a lower ceiling but a higher floor. This approach aims to collectively return the fund once and typically represents around 20% of the invested dollars.

Not Boring Capital recognizes the power of community in driving success. It leverages the vast network of Not Boring readers and portfolio companies to create a virtuous cycle of support and collaboration. By engaging with smart individuals, sharing knowledge through writing, and making strategic investments, Not Boring Capital aims to make a lasting impact on the startup ecosystem.

In a world where capital is abundant, attention and talent have become the new scarcities. By fostering a community that encourages the exchange of ideas and experiences, Not Boring Capital seeks to address these scarcities and contribute to the growth of innovative startups. The fund's unique blend of investing and storytelling sets it apart and positions it as a valuable resource for entrepreneurs looking to amplify their narratives.

As we delve into the world of venture capital and entrepreneurial success, there are three actionable pieces of advice we can glean from Not Boring Capital:

• 1. Embrace unconventional ideas: Silicon Valley's spirit of celebrating weird ideas can inspire entrepreneurs to think outside the box and take bold swings. Innovation often stems from embracing the unconventional and challenging the status quo.

• 2. Build a supportive community: Surrounding oneself with a community of like-minded individuals can provide invaluable support and guidance. By sharing knowledge and experiences, entrepreneurs can tap into the collective wisdom of their peers and accelerate their growth.

• 3. Tell a compelling story: In today's digital age, storytelling has become a powerful tool for capturing attention and building a brand. Startups that can articulate their vision and mission in a compelling way are more likely to attract investors and customers alike.

In conclusion, Not Boring Capital exemplifies the convergence of Silicon Valley's entrepreneurial mindset and the power of community-driven investing. By investing in companies with stories to tell and leveraging the network of readers and portfolio companies, Not Boring Capital aims to make a significant impact on the startup ecosystem. Through embracing unconventional ideas, fostering a supportive community, and telling compelling stories, entrepreneurs can learn from the success of Not Boring Capital and strive towards their own entrepreneurial endeavors.