In April 2024, I began my eighth enterprise, CapXcentric, a pre-seed to Sequence A capital elevating teaching enterprise.
And I made a deliberate choice: I’m not scaling it.
I do know, it sounds ironic. CapXcentric exists to information founders by the capital increase course of, usually for high-growth, hyper-scale startups. However regardless of working in an area that’s all about going huge, I’ve chosen to construct a enterprise that focuses on high quality over amount.
Why this path
After years of transferring thousands and thousands—and typically billions—of {dollars} round, constructing scalable techniques, and crafting advanced monetary fashions, one thing shifted. I needed extra goal and fewer noise.
I grew up 10km from Mortlake, a small city of simply 1,500 individuals, the place life was easy and group mattered. Through the years, 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 automotive 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 speedy scale appears like. And I select to not search it in my enterprise.
Not each enterprise ought to in search of VC funds
When founders strategy 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 outcome? 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 firms – they’re extra investible.
CapXcentric founder Warwick Donaldson
When founders take the time to concentrate on their well-being and thoughtfully align their progress methods with their values, they create firms that traders belief and wish to again for the lengthy haul.
So if a founder is decided to boost VC capital, I’m all-in. However I begin by searching for proof to construct a robust case quite than assuming it’s the one path ahead. My position is to assist founders determine the proper method to develop their firm, whether or not that’s by VC funding, partnerships, natural progress, 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 bold startups tackling huge, advanced issues in industries like MedTech, CleanTech, and software program. I thrive within the chaos of pre-seed to Sequence A fundraising – it’s fast-moving, high-stakes, and deeply rewarding.
However right here’s what I do know: balanced founders make higher selections.
They lead more practical groups. They create cultures the place individuals truly wish to work.
Briefly, 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 yr, I obtained a listening to support 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 compelled me to rethink how I strategy work and life.
Now, I begin my mornings with lengthy walks—with out my telephone. I spend time gardening. I’ve realized find out how to be current within the small moments of life.
These aren’t luxuries – they’re what maintain me balanced and grounded.
Working CapXcentric can also be an enormous a part of my goal. I love what I do. I really like serving to founders safe the funding they should construct the long run.
I really 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 without end. And truthfully, I hope it doesn’t. I wish 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 advised me:
“Cease ready for others to be the chief you need them to be. Exit and be that chief your self.”
That recommendation modified the whole lot. I can’t management the people who find themselves keen to trash the planet or exploit others to make more cash than they’ll ever want. However I can management how I run my enterprise, who I work with, and the way I present up day by day.
Scaling isn’t all the time the reply
Scaling shortly brings greater dangers too. Picture: AdobeStock
The startup world usually 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 goal after 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 progress ambitions, I additionally wish to maintain myself accountable to creating the world I wish to reside in—not simply speak about constructing thoughtfully, however truly do it. Listed here are a number of pledges I’ve ensured are baked into the DNA of CapXcentric (all publicly accessible on our web site):
- A Code of Conduct and Ethics – Transparency and integrity aren’t negotiable.
- Donating a Minimal of 25% of Earnings – Giving again isn’t an afterthought—it’s a part of who we’re.
- Partaking Neurodivergent and Underrepresented Expertise – We actively work with individuals and communities who are sometimes ignored.
- Working Solely with Startups That Do No Hurt – If a enterprise causes hurt, I’m not .
- Sustainability Pledge – We’re dedicated to offsetting 100% of our carbon emissions and lowering our environmental footprint.
- Annual Influence Report for Transparency – We publish an annual report outlining our influence, 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 number of key moments in my life that modified how I see the world:
Nanjing Metropolis on a transparent day. Picture: AdobeStock
- Residing 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 buddies lose the whole lot due to unhealthy luck, psychological well being struggles, and job instability. It made me query why our techniques fail the individuals who want help probably the most.
- Going through Habit and Trauma: Throughout COVID, I give up alcohol, cigarettes, and medicine. I used to be additionally recognized with PTSD – one thing I didn’t totally perceive till lately. Confronting my worry of rejection and my people-pleasing tendencies has been one of many hardest and most rewarding issues I’ve ever executed.
Constructing Thoughtfully – my recommendation
If I may 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 Effectively-Being: You’ll make higher selections if you’re trying after your psychological and bodily well being.
- Know Your “Why”: In the event you’re clear about your goal, you’re much less more likely to get sidetracked.
- Query Typical Knowledge: Simply because one thing’s customary doesn’t imply it’s best for you.
- Be Genuine and Weak: Your authenticity will construct stronger relationships—together with your workforce, your prospects, and your traders.
Acknowledging privilege and staying true to what issues
I do know that privilege has performed a job 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 method to do enterprise.
Scaling is likely to be the dominant narrative, but it surely’s not the one method to construct.
Your legacy gained’t be outlined by how briskly you grew or how a lot income you made. It’ll be outlined by the influence you created, the individuals you empowered, and the instance you set for others.
For me, that’s the story I wish to inform.
- Warwick Donaldson is the writer of the Aussie Startup Capital Nerd and specialises in offering hands-on capital elevating help providers for Aussie startups CapXcentric.
