Introducing Not Boring Capital: Investing in Stories and Building Relationships

Introducing Not Boring Capital: Investing in Stories and Building Relationships

Not Boring Capital is an $8 million venture fund that seeks to invest in companies with compelling stories and help them amplify their narratives. With a focus on Seed through Series B companies, the fund occasionally makes pre-seed and growth-stage investments. The unique aspect of Not Boring Capital is that its founder, Packy McCormick, believes that his writing skills have made him a better investor, and his investing experience has made him a better writer. This symbiotic relationship between investing and storytelling creates an unparalleled flywheel effect.

One of the leading verticals for Not Boring Capital is fintech, with six investments totaling $525k. Fintech companies offer exciting opportunities for growth and disruption in the financial industry. However, the fund also diversifies its investments across other sectors to mitigate risk and explore high-upside opportunities. Not Boring Capital follows a three-pillar investment strategy: Core, Explore, and Growth.

The Core investments are companies that have the potential to generate significant returns and contribute about 75% of the total invested dollars. These are the companies that can truly make a difference and shape the future. The Explore investments are smaller, riskier bets that aim to secure a seat in the next funding round or increase deal flow. While the individual investments may be too small to guarantee significant returns, they provide the fund with exposure to emerging trends and technologies. Finally, the Growth investments are later-stage or safer bets that offer a lower ceiling but a higher floor. These investments collectively aim to return the fund once and account for about 20% of the invested dollars.

The success of Apple, which has grown its market cap from the low-$400 billion range in 2011 to $2.4 trillion today, demonstrates the potential for exponential growth in the tech industry. Not Boring Capital aims to capitalize on such opportunities by identifying and investing in companies that have the potential to become the next Apple.

While most venture firms have a limited number of employees, Not Boring Capital takes a different approach. Packy McCormick believes that his audience, comprised of Not Boring readers, is an integral part of the fund. By leveraging the knowledge and networks of his readers, he can create a community-driven investment approach. The success of portfolio companies is enhanced when Not Boring readers actively support and promote them.

Packy McCormick's passion for meeting smart people, reading, writing, and investing is at the core of Not Boring Capital. These activities fuel his curiosity and enable him to identify exciting investment opportunities. By immersing himself in a vast network of intellectuals and staying up-to-date with industry trends, Packy can make informed investment decisions.

Another key aspect of Not Boring Capital's philosophy is the emphasis on quality and attention to detail. This mindset is heavily influenced by Ivan Zhao, the co-founder of Notion, a versatile productivity tool. Ivan believes that craftsmanship and a focus on the finer details are essential in creating exceptional products. He draws inspiration from the city of Kyoto, where simplicity and meticulousness are deeply ingrained in everyday life. Ivan also emphasizes the importance of hospitality in software as a service. It is not just about providing a product but also delivering outstanding support, sales, and customer success experiences.

Notion, as a product, addresses the need for solving problems with a business mindset. Ivan highlights that many people still rely on outdated tools like Microsoft Office, which fail to incorporate business sense. By considering personas and core use cases, Notion aims to provide innovative solutions that genuinely address users' needs.

To maintain balance and ensure quality, Ivan believes in sacrificing quantity. By focusing on a select number of high-quality features, Notion can deliver excellent results. The company also places great importance on feedback, considering it a gift. The direct and open culture at Notion fosters a learning environment where team members provide feedback to each other, ultimately improving the product's quality.

Notion's commitment to its users goes beyond just delivering a great product. The company actively engages with users on social media platforms like Twitter and Reddit, striving to build a community of passionate users. By actively listening to feedback and incorporating user suggestions, Notion aims to create a product that truly resonates with its audience.

When it comes to decision-making within the company, Notion values the ability to distinguish irreversible decisions from reversible ones. Certain decisions, such as providing free access to partners, require careful consideration due to their long-term implications. Notion also places a strong emphasis on recruiting the right talent, as hiring the wrong person can be challenging to rectify later on.

In addition to technical skills, Notion values a holistic approach and seeks team members who embody a sense of focus and dedication. The hospitality and craftsmanship mindset of individuals can positively influence the entire team. Another crucial aspect that Notion values is sincerity. Trust and reputation are built on sincerity, and once lost, they are incredibly challenging to regain.

Notion's co-founder, Ivan Zhao, believes that true innovation lies in combining art, science, and other dimensions. By infusing products with love and care, Notion ensures high-quality and meaningful experiences for its users. Furthermore, the brand's incorporation of art and human-centric elements creates a sense of community and fosters deep affection among its passionate user base.

While Japan may still be relatively new to software development, it has unique strengths in craftsmanship and a spirit of hospitality. The combination of these qualities can be a powerful advantage in building exceptional products and providing outstanding service.

In conclusion, Not Boring Capital and Notion share a common thread of investing in stories and building relationships. Both entities recognize the importance of attention to detail, quality, and hospitality in their respective industries. Furthermore, their commitment to engaging with their communities and incorporating feedback highlights the value they place on their users. By embracing these principles, investors and product creators can create meaningful and impactful experiences that resonate with their audience.

Actionable Advice:

1. Cultivate a network of intellectuals and industry experts to stay informed and identify exciting investment opportunities. Engage with the community and leverage their knowledge and networks to enhance portfolio companies' success.

2. Prioritize quality over quantity. Focus on a select number of high-quality features or solutions that genuinely address users' needs. Sacrificing quantity can lead to better results and user satisfaction.

3. Embrace feedback as a gift. Actively listen to user suggestions and incorporate their feedback into product development. Engage with users on social media platforms and foster a community-driven approach to product building.

By following these actionable advice, investors and product creators can enhance their decision-making processes, deliver exceptional experiences, and build strong relationships with their audience.