The Feature -> Product -> Company Continuum

The Feature -> Product -> Company Continuum

Many companies start their journey somewhere between being a feature and a product. However, one of the challenges that is often misunderstood is that the success of this journey depends not only on the breadth of the product being built but also on the overall size of the opportunity and the universality of the solution in the market.

It is essential to understand that if each user buys your "product" for a different reason, you may have just created a feature set rather than a true product. The key to moving along the company path lies in having a bigger opportunity and a more ubiquitous solution, as it allows for greater focus and pay off.

Introducing Not Boring Capital

Not Boring Capital is an $8 million venture fund that seeks to invest in companies with compelling stories and helps tell those stories. The fund primarily focuses on Seed through Series B companies, occasionally making pre-seed and growth-stage investments. The founder, Packy McCormick, believes that his writing and investing go hand in hand, creating a powerful flywheel effect.

Fintech is the leading vertical for Not Boring Capital, with the most number of investments (6) and the highest amount invested ($525k). However, the fund is not limited to fintech and explores other sectors as well. The investment strategy is divided into three categories:

1. Core: Investments with the potential to return the fund in the bull case. This category accounts for approximately 75% of the total invested dollars.

2. Explore: Smaller investments aimed at getting a seat in the next round or increasing deal flow. While these investments have high upside potential, they are too small to expect a significant return. This category represents 5-10% of the invested dollars.

3. Growth: Later-stage or safer investments with a lower ceiling but a higher floor. This category accounts for around 20% of the invested dollars and is expected to collectively return the fund at least once.

The Power of Scale

The power of scale is evident when we look at the rise of Apple. In 2011, Exxon was the most valuable company in the world with a market cap in the low-$400 billion range. Today, Apple's market cap stands at $2.4 trillion, nearly six times higher. This growth is a testament to the potential that lies within a company's ability to scale.

Not Boring Capital differentiates itself from other venture firms by leveraging its vast network of readers. With over 60,000 people, the fund's portfolio companies benefit greatly from the support and expertise of this community. It is a unique aspect that sets Not Boring Capital apart and creates a symbiotic relationship between the readers and the portfolio companies.

The Three Passions

Packy McCormick, the founder of Not Boring Capital, has always had three passions: meeting and talking to smart people, reading and writing, and investing. These passions are deeply intertwined and drive his success in both investing and storytelling. The ability to learn from others, consume knowledge through reading, and share insights through writing has been instrumental in his journey.

Actionable Advice

1. Focus on the problem: Ensure that your product or solution addresses a universal problem in the market. By understanding the breadth of the problem and developing a solution that resonates with a wide audience, you can move from being a feature to a true product.

2. Leverage storytelling: Stories have a unique power to captivate and engage an audience. Incorporate storytelling into your company's narrative and use it as a tool to connect with investors, customers, and the wider community. Not Boring Capital's success lies in its ability to invest in companies with compelling stories and help amplify them.

3. Build a community: Cultivate a community around your company or product. Engage with your audience, listen to their feedback, and create a sense of belonging. The power of a supportive community can greatly benefit your company's growth and success.

In conclusion, the journey from being a feature to a product and eventually a successful company requires a deep understanding of the market, a universal solution, and the ability to scale. Not Boring Capital exemplifies these principles through its investment strategy, focus on storytelling, and leveraging a supportive community. By applying these lessons and taking actionable steps, aspiring entrepreneurs can increase their chances of building successful companies with compelling stories to tell.