Introducing Not Boring Capital: Investing in Stories and Building Connections

Introducing Not Boring Capital: Investing in Stories and Building Connections

In the world of venture capital, where investors are constantly seeking out the next big thing, Not Boring Capital has emerged as a unique player. With an $8 million fund, they invest in companies that have compelling stories to tell. But their involvement doesn't stop at funding. Not Boring Capital also helps these companies share their stories with the world.

Packy McCormick, the founder of Not Boring Capital, believes that his background in both investing and writing gives him a distinct advantage. By investing in companies with stories, he can leverage his writing skills to amplify their narratives. And by constantly writing and researching, he remains at the forefront of the latest trends and opportunities in the market.

Fintech is the leading vertical for Not Boring Capital, with six investments totaling $525k. This focus on investing tech within the financial industry reflects the fund's belief in the potential of this sector. Not Boring Capital sees fintech as a lucrative space with significant growth opportunities.

To maximize returns, Not Boring Capital follows a three-pronged approach. The core of their investments consists of companies that have the potential to return the fund in the best-case scenario. This makes up about 75% of their total investment. Additionally, they make smaller exploratory investments to secure a seat in the next round or increase deal flow. While these investments may have high upside, they are not expected to individually return the fund. Lastly, they allocate about 20% of their investment to safer, later-stage companies that have a lower ceiling but a higher floor.

One interesting aspect of Not Boring Capital is their extensive network. While most venture firms have a limited number of people, Not Boring Capital boasts a network of 60,000 individuals. This vast network allows for unique opportunities and collaborations. Not Boring Capital's portfolio companies can tap into this network for support, while readers of the Not Boring newsletter can contribute their expertise to help these companies succeed.

The connection between investing, writing, and knowledge sharing is a core value for Not Boring Capital. Packy McCormick, the founder, has always been passionate about meeting smart people, reading, writing, and investing. He believes that these three activities go hand in hand and can create a powerful flywheel for success.

In a similar vein, Substack, a popular newsletter platform, has recognized the value of high-quality information. Just as people are willing to pay a premium for high-quality food, clothes, and cars, they are also willing to invest in premium content. Substack has capitalized on this trend by providing a platform for writers to monetize their newsletters through subscriptions.

Substack's revenue model revolves around taking a 10% cut of subscription revenue. The success of the platform is directly tied to the success of its writers. By increasing the number of readers who convert from free to paid subscriptions, increasing the average number of subscriptions per paid reader, or increasing the average subscription cost, Substack can drive more revenue for both themselves and their writers.

To further support writers and increase revenue, Substack is exploring the development of discovery tools. These tools, such as a recommendation engine, would help readers discover new content and encourage them to subscribe to more newsletters. Additionally, bundling subscriptions could be a viable strategy to generate more revenue. By offering bundles of newsletters, Substack and its writers can attract more casual fans who may be inclined to purchase multiple subscriptions.

In conclusion, the worlds of venture capital and newsletter platforms are converging in interesting ways. Not Boring Capital's focus on investing in companies with stories aligns with Substack's mission to provide a platform for high-quality content. Both entities recognize the importance of connections, whether it be through building a network of supporters or providing tools for content discovery.

For those looking to navigate these spaces, here are three actionable pieces of advice:

1. Invest in companies with compelling stories: Look for startups that have a unique narrative and the potential to captivate an audience. These stories can help differentiate the company and attract attention from investors and customers alike.

2. Leverage the power of writing: Whether you're an investor or an entrepreneur, honing your writing skills can be a valuable asset. Writing allows you to articulate your ideas clearly, build a personal brand, and connect with others in meaningful ways.

3. Embrace the value of knowledge sharing: By actively participating in communities, sharing insights, and collaborating with others, you can unlock new opportunities and accelerate your growth. The connections you make and the knowledge you gain can be invaluable assets in your journey.

In the ever-evolving landscape of investing and content creation, Not Boring Capital and Substack have emerged as trailblazers. Their unique approaches and emphasis on storytelling and knowledge sharing have set them apart. As the world continues to value high-quality information, these entities are poised to thrive and make a lasting impact.