The Intersection of Burnout and Venture Capital: Lessons Learned and Actionable Advice

Kazuki

Hatched by Kazuki

Sep 15, 2023

3 min read

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The Intersection of Burnout and Venture Capital: Lessons Learned and Actionable Advice

Introduction:

In this article, we will explore the common points between the experiences of burnout as a startup founder and the introduction of Not Boring Capital, an $8 million venture fund. Through these narratives, we will uncover valuable insights and actionable advice for individuals in the startup world.

Experiencing Burnout as a Startup Founder:

The founder of Buffer, a well-known social media management platform, shares his personal experience with burnout. Despite maintaining a healthy lifestyle and optimism about his company's future, he found himself losing motivation and feeling emotionally drained. Seeking therapy and gaining perspective through regular sessions proved to be a crucial step in his recovery. Furthermore, implementing a sabbatical policy at Buffer helped prevent burnout among employees. Taking a true vacation and disconnecting from work were emphasized as essential practices.

Venture Capital and Not Boring Capital:

Not Boring Capital, an $8 million venture fund, focuses on investing in companies with compelling stories and supports them in sharing those stories effectively. With a primary focus on Seed through Series B companies, the fund occasionally invests in pre-seed and growth-stage startups. Fintech emerges as the leading vertical for investments, reflecting the fund's interest in investing in technology that disrupts the financial industry.

Investment Strategy and Lessons Learned:

Not Boring Capital follows a diversified investment strategy with three core categories: Core, Explore, and Growth. The Core investments hold the potential to generate significant returns and account for approximately 75% of the fund's invested dollars. Explore investments, though smaller in size, aim to secure a seat in the next funding round or increase deal flow. Growth investments involve later-stage or safer opportunities with a lower ceiling but higher floor. These investments collectively aim to return the fund once.

Connecting the Dots:

While seemingly unrelated, the experiences of burnout and venture capital intersect in several ways. Both highlight the importance of maintaining perspective, taking breaks, and seeking professional support. Burnout can occur in any high-pressure environment, including the startup world and the fast-paced world of venture capital. Recognizing the signs of burnout and implementing preventative measures is crucial for founders, investors, and employees alike.

Actionable Advice:

  • 1. Prioritize self-care: Incorporate regular breaks and vacations into your schedule. Disconnect from work and focus on activities that bring you joy and a sense of achievement outside of your professional life.
  • 2. Seek professional support: Consider therapy or coaching, even if you feel you don't need it. Professional guidance can provide valuable insights and help you navigate challenges more effectively.
  • 3. Embrace diversification: Whether in your startup portfolio or investment strategy, diversification is key. Spread your resources across different opportunities to mitigate risk and increase the potential for significant returns.

Conclusion:

The experiences of burnout as a startup founder and the establishment of Not Boring Capital shed light on the challenges and strategies prevalent in the startup and venture capital worlds. By prioritizing self-care, seeking professional support, and embracing diversification, individuals can navigate these landscapes more effectively and increase their chances of success while avoiding burnout. Remember, sustainable growth and well-being go hand in hand in the dynamic world of entrepreneurship and investment.

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