Building Not Boring Capital: Investing, Writing, and Cultivating Communities

Building Not Boring Capital: Investing, Writing, and Cultivating Communities

Introduction:
Not Boring Capital is an $8 million venture fund that invests in companies with compelling stories and helps amplify those narratives. Led by Packy McCormick, the fund focuses on Seed through Series B companies, with occasional investments in pre-seed and growth-stage startups. This article explores the intersection of investing, writing, and community-building, highlighting the fund's investment strategy and the importance of storytelling and community for startups.

Investment Strategy: Core, Explore, and Growth
Not Boring Capital follows a three-pronged investment strategy. The majority of the fund's investments fall under the "Core" category, with the potential to significantly contribute to the fund's returns. Roughly 75% of the total investment dollars are allocated to this category. The "Explore" category consists of smaller investments that aim to secure a seat in the next funding round or increase deal flow. These investments offer high upside potential but may not individually generate substantial returns. Typically, 5-10% of the invested dollars are allocated to this category. Lastly, the "Growth" category comprises later-stage or safer investments with a lower ceiling but a higher floor. Around 20% of the invested dollars are allocated to this category, with the expectation that they collectively return the fund.

The Power of Storytelling: Investing and Writing
Packy McCormick, the driving force behind Not Boring Capital, believes that his writing enhances his abilities as an investor, and vice versa. His writing allows him to articulate investment theses, provide insights, and establish a connection with his readers. This symbiotic relationship between investing and writing creates a powerful flywheel that amplifies his impact as both an investor and a writer. By investing in companies with compelling narratives, Not Boring Capital aims to leverage the power of storytelling to drive success.

The Fintech Focus: Investing in Technology for Finance
Fintech emerges as the leading vertical for Not Boring Capital, with the fund making six investments totaling $525k in this sector. Recognizing the transformative potential of technology in the finance industry, the fund actively seeks opportunities to support innovative fintech startups. By investing in fintech, Not Boring Capital aligns its interests with the evolving needs of consumers and businesses in the financial sector.

Cultivating Communities: The Key to Success
Kevin Systrom, co-founder of Instagram, emphasized the importance of community during his talk at Startup School SV in 2014. He highlighted that while technology and ideas can be copied, building a strong community is incredibly challenging. Not Boring Capital recognizes the value of community and strives to foster a network of engaged individuals who can support its portfolio companies. By cultivating a community of readers and investors, Not Boring Capital creates a virtuous cycle where its portfolio companies benefit from the support of its readers, who in turn gain valuable insights and investment opportunities.

Actionable Advice:

1. Embrace Relentlessness: As Kevin Systrom emphasized, being relentless is crucial for success. Believe in your idea and be your own advocate, even in the face of skepticism. Persistence and unwavering determination can help turn seemingly impossible ideas into groundbreaking realities.

2. Harness the Power of Community: Building a strong community around your company is a valuable asset that cannot be easily replicated. Foster a sense of belonging, engage with your audience, and provide value to create a supportive community that can propel your business forward.

3. Invest in Storytelling: Incorporate storytelling into your company's narrative. Develop a compelling story that resonates with your target audience and highlights the unique value your business offers. Effective storytelling can captivate investors, customers, and employees, leading to greater success and growth.

Conclusion:
Not Boring Capital exemplifies the synergy between investing, writing, and community-building. By intertwining these elements, the fund maximizes its impact and supports startups with compelling stories. Through its investment strategy, focus on fintech, and emphasis on community, Not Boring Capital paves the way for innovation and growth in the startup ecosystem.

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