In April 2024, I began my eighth enterprise, CapXcentric, a pre-seed to Collection 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 way of the capital increase course of, typically for high-growth, hyper-scale startups. However regardless of working in an area that’s all about going large, 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 generally billions—of {dollars} round, constructing scalable techniques, and crafting advanced monetary fashions, one thing shifted. I wished 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 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 automobile or I hear a couple of huge 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 appears to be like like. And I select to not search it in my enterprise.
Not each enterprise ought to looking 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 outcome? Burnout, lack of mission, and companies collapsing below the load 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.
CapXcentric founder Warwick Donaldson
When founders take the time to give attention to their well-being and thoughtfully align their development methods with their values, they create corporations that traders belief and wish to again for the lengthy haul.
So if a founder is decided to lift VC capital, I’m all-in. However I begin by in search of proof to construct a powerful case reasonably than assuming it’s the one path ahead. My function is to assist founders determine the fitting technique to develop their firm, whether or not that’s by way of VC funding, partnerships, natural development, or one thing else fully.
What I realized about stability in high-growth environments
Let me be clear: I’m not anti-growth.
I like working with formidable startups tackling large, 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 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 identified with ADHD. Final yr, I received 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 continual sciatica.
These experiences pressured me to rethink how I method work and life.
Now, I begin my mornings with lengthy walks—with out my cellphone. I spend time gardening. I’ve realized methods to be current within the small moments of life.
These aren’t luxuries – they’re what maintain me balanced and grounded.
Operating CapXcentric can also be an enormous a part of my objective. I like what I do. I like serving to founders safe the funding they should construct the long run.
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 precise 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 business was extra moral, much less grasping. However a mentor as soon as informed me:
“Stop waiting for others to be the leader you want them to be. Go out and be that leader yourself.”
That recommendation modified all the pieces. I can’t management the people who find themselves prepared 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-after-day.
Scaling isn’t all the time the reply
Scaling shortly brings greater dangers too. Picture: AdobeStock
The startup world typically equates success with “bigger is better.” 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 authentic spark fades away.
There’s a candy spot: staying sufficiently small to care, nimble sufficient to adapt, and targeted sufficient to remain true to your values.
Constructing Thoughtfully: What I’ve baked into my enterprise
Past simply my enterprise development ambitions, I additionally wish to maintain myself accountable to creating the world I wish to reside in—not simply discuss constructing thoughtfully, however truly do it. Listed below are a couple of pledges I’ve ensured are baked into the DNA of CapXcentric (all publicly out there on our web site):
A Code of Conduct and Ethics – Transparency and integrity aren’t negotiable.
Donating a Minimal of 25% of Income – 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 Affect 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 couple of key moments in my life that modified how I see the world:
Nanjing Metropolis on a transparent day. Photograph: AdobeStock
Dwelling in China’s Mega-Cities: I spent three years in Nanjing, surrounded by smog that was a relentless reminder of the environmental price of low cost, disposable items. I’ve hated “disposable” merchandise ever since.
Seeing Homelessness Up Shut: I’ve watched household and associates lose all the pieces due to unhealthy luck, psychological well being struggles, and job instability. It made me query why our techniques fail the individuals who want help essentially the most.
Going through Habit and Trauma: Throughout COVID, I stop alcohol, cigarettes, and medication. I used to be additionally identified with PTSD – one thing I didn’t absolutely perceive till just 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 might give founders one piece of recommendation, it’s this: construct thoughtfully.
Perceive the distinction between what’s anticipated and what’s best for you.
Prioritise Your Nicely-Being: You’ll make higher selections once you’re trying after your psychological and bodily well being.
Know Your “Why”: If you happen to’re clear about your objective, you’re much less prone to get sidetracked.
Query Typical Knowledge: Simply because one thing’s normal 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 job in my journey. I’ve had alternatives that others might not have had. That makes it much more vital for me to make use of my platform thoughtfully and advocate for a greater technique to do enterprise.
Scaling may be the dominant narrative, nevertheless it’s not the one technique 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 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 companies for Aussie startups CapXcentric.
