CapXcentric founder Warwick Donaldson on slowing down, staying small and when to keep away from VC funding

In April 2024, I began my eighth enterprise, CapXcentric, a pre-seed to Collection A capital elevating teaching enterprise.

And I made a deliberate determination: I’m not scaling it. 

I do know, it sounds ironic. CapXcentric exists to information founders by means of the capital elevate course of, typically for high-growth, hyper-scale startups. However regardless of working in an area that’s all about going massive, I’ve chosen to construct a enterprise that focuses on high quality over amount. 

Why this path

After years of shifting thousands and thousands—and typically billions—of {dollars} round, constructing  scalable techniques, and crafting advanced monetary fashions, one thing shifted. I needed  extra objective and fewer noise. 

I grew up 10km from Mortlake, a small city of simply 1,500 individuals, the place life was easy and neighborhood mattered. Over time, I’ve felt myself being drawn again to these  ideas. 

However let’s be actual—it’s not like I wakened one morning with all of the solutions. I nonetheless have moments the place I second-guess my decisions. When somebody drives previous in a flashy new automobile or I hear a few large wage, I really feel a pang of envy.

However I remind myself that actual success, for me, isn’t exterior – it’s about creating one thing significant that aligns with my values. 

I do know what fast scale seems to be like. And I select to not search it in my enterprise.

Not each enterprise ought to searching for VC funds

When founders method me, I assume from the outset that they’re not a match for VC funding. 

Why? As a result of I’ve seen too many nice companies get shoehorned into the VC mannequin when it wasn’t proper for them. They’re pushed into chasing hyper-growth when their product, market, or long-term imaginative and prescient doesn’t align with that path.

The end result? Burnout, lack of mission, and companies collapsing underneath the burden of expectations they had been by no means meant to hold. 

However right here’s the reality: wholesome, balanced founders don’t simply construct higher corporations – they’re extra investible.

When founders take the time to deal with their well-being and thoughtfully align their development methods with their values, they create corporations that traders belief and need to again for the lengthy haul.

So if a founder is decided to boost VC capital, I’m all-in. However I begin by in search of  proof to construct a powerful case quite than assuming it’s the one path ahead. My position is to assist founders determine the proper solution to develop their firm, whether or not that’s by means of VC funding, partnerships, natural development, or one thing else completely. 

What I realized about stability in high-growth environments 

Let me be clear: I’m not anti-growth.

I love working with formidable startups tackling massive, advanced issues in industries like MedTech, CleanTech, and software program. I thrive within the chaos of pre-seed to Collection A fundraising – it’s fast-moving, high-stakes, and deeply rewarding. 

However right here’s what I do know: balanced founders make higher choices.

They lead simpler groups. They create cultures the place individuals truly need to work.

In brief, wholesome management isn’t only a nice-to-have—it’s a aggressive benefit. 

How I realized to decelerate 

Two years in the past, I used to be recognized with ADHD. Final 12 months, I obtained a listening to help after a uncommon situation left me with listening to loss on the age of seven. And for the previous 4 years, I’ve lived with persistent sciatica. 

These experiences pressured me to rethink how I method work and life.

Now, I begin my mornings with lengthy walks—with out my telephone. I spend time gardening. I’ve realized learn how to be current within the small moments of life.

These aren’t luxuries – they’re what hold me balanced and grounded. 

Operating CapXcentric can be an enormous a part of my objective. I love what I do. I like serving to founders safe the funding they should construct the longer term.

I like creating exponentially extra worth for them than I cost. However I’m nonetheless early in my psychological well being journey, and I’m okay with that. 

I don’t know if this actual path will final ceaselessly. And actually, I hope it doesn’t. I need to  continue to grow and evolving. This is only one chapter in a a lot greater story. 

Cease ready for another person 

For years, I wanted the finance trade was extra moral, much less grasping. However a mentor  as soon as informed me: 

“Cease ready for others to be the chief you need them to be. Exit and be that chief  your self.” 

That recommendation modified every part. I can’t management the people who find themselves keen to trash the  planet or exploit others to earn more money than they’ll ever want. However I can management  how I run my enterprise, who I work with, and the way I present up each day.

Scaling isn’t at all times the reply 

The startup world typically equates success with “greater is best.” However we’ve all seen what occurs when issues scale with out sufficient thought. 

Too many companies lose their objective once they develop too quick. The mission will get blurry, the groups burn out, and that unique spark fades away. 

There’s a candy spot: staying sufficiently small to care, nimble sufficient to adapt, and  centered sufficient to remain true to your values. 

Constructing Thoughtfully: What I’ve baked into my enterprise 

Past simply my enterprise development ambitions, I additionally need to maintain myself accountable to  creating the world I need to dwell in—not simply discuss constructing thoughtfully, however truly  do it. Listed here are a couple of pledges I’ve ensured are baked into the DNA of CapXcentric (all  publicly out there on our web site): 

1. A Code of Conduct and Ethics – Transparency and integrity aren’t negotiable. 
2. Donating a Minimal of 25% of Income – Giving again isn’t an afterthought—it’s a part of who we’re. 
3. Participating Neurodivergent and Underrepresented Expertise – We actively work with individuals and communities who are sometimes ignored. 
4. Working Solely with Startups That Do No Hurt – If a enterprise causes hurt, I’m not . 
5. Sustainability Pledge – We’re dedicated to offsetting 100% of our carbon emissions and lowering our environmental footprint. 
6. Annual Influence Report for Transparency – We publish an annual report outlining our affect, donations, and carbon offset contributions. 

These pledges assist us keep aligned with our perception that companies ought to create worth  with out inflicting hurt. 

Experiences that formed my perspective

There are a couple of key moments in my life that modified how I see the world:

• Dwelling in China’s Mega-Cities: I spent three years in Nanjing, surrounded by smog that was a relentless reminder of the environmental value of low cost, disposable items. I’ve hated “disposable” merchandise ever since. 
• Seeing Homelessness Up Shut: I’ve watched household and pals lose every part due to dangerous luck, psychological well being struggles, and job instability. It made me query why our techniques fail the individuals who want assist probably the most.
• Going through Habit and Trauma: Throughout COVID, I stop alcohol, cigarettes, and  medicine. I used to be additionally recognized with PTSD – one thing I didn’t absolutely perceive till not too long ago. Confronting my concern of rejection and my people-pleasing tendencies has been one of many hardest and most rewarding issues I’ve ever achieved. 

Constructing Thoughtfully – my recommendation 

If I might give founders one piece of recommendation, it’s this: construct thoughtfully.

Perceive the distinction between what’s anticipated and what’s proper for you. 

• Prioritise Your Properly-Being: You’ll make higher choices once you’re wanting  after your psychological and bodily well being. 
• Know Your “Why”: When you’re clear about your objective, you’re much less prone to get  sidetracked. 
• Query Standard Knowledge: Simply because one thing’s commonplace doesn’t  imply it’s best for you. 
• Be Genuine and Weak: Your authenticity will construct stronger  relationships—along with your staff, your prospects, and your traders. 

Acknowledging privilege and staying true to what issues 

I do know that privilege has performed a task in my journey. I’ve had alternatives that others could not have had. That makes it much more necessary for me to make use of my platform thoughtfully and advocate for a greater solution to do enterprise. 

Scaling is perhaps the dominant narrative, however it’s not the one solution to construct. 

Your legacy received’t be outlined by how briskly you grew or how a lot income you made. It’ll  be outlined by the affect you created, the individuals you empowered, and the instance you  set for others. 

For me, that’s the story I need to inform.

• Warwick Donaldson is the creator of the Aussie Startup Capital Nerd and specialises in offering hands-on capital elevating assist companies for Aussie startups CapXcentric.