# Not Boring Capital Fund I Financial Model Not Boring Capital is a venture fund run by newsletter writer Packy McCormick that invests in "companies with stories to tell" and leverages the Not Boring media platform to help them tell those stories. - Canonical: https://finamodel.com/startups/not-boring-capital-fund-i - Excel download: https://finamodel.com/startup-models/not-boring-capital-fund-i.xlsx - Category: Media/Gaming - Model type: SaaS ARR / Valuation - Funding round: Fund 1 - Funding: $5M - Founded: 2021 - Geography: US-primary; some emerging-market exposure (Africa: Antara Health, OZE). [DECK slide 09] ## About the company Not Boring Capital Fund I is a venture fund investing from Seed through Series B in companies with stories to tell. Its value-add is the Not Boring newsletter and broader media platform, which can help portfolio companies with distribution, investment memos, social reach, and dealflow. This is fund economics rather than startup revenue: the terms specify a 2% management fee for three years, 20% carried interest, a $100,000 GP commitment, and capital calls split 50% upfront and 50% when called. Sponsorships are related media-entity revenue, not fund returns. The deck cites a $5 million terms-sheet fund size versus an $8 million fundraising statement, so the discrepancy requires an explicit model assumption. It planned 25–40 investments over 12–18 months with 10% reserves. The fund model should schedule calls, deployment, NAV, exits, carry, DPI, TVPI, RVPI, and net IRR. ## What's included - 5-year monthly revenue build with stage-appropriate growth assumptions - Full P&L, headcount plan, and operating-expense schedule - Cash-flow statement, runway, and burn-rate tracking - Valuation via exit multiple with a DCF cross-check - Returns analysis with MOIC and IRR - Unit economics including CAC, LTV, payback, and cohort retention ## Product & value proposition - The fund invests in Seed–Series B tech companies. - Core value-add to portfolio companies: distribution via Not Boring newsletter + storytelling / investment memos + social reach. - Flywheel: writing → audience → sponsors → dealflow → investments → public memos → more audience. - Packy is the top referrer for multiple portfolio companies (e.g. MainStreet, Composer). - Supplementary support: operational experience (Breather, VP Experience, team of 150). ## Revenue model This is a fund, not an operating company. Economics are fund economics: - Management fee: 2% p.a. for 3 years, then 0%. - Carried interest: 20%. - GP commitment: $100k. - Minimum LP investment: $25,000. - Capital calls: 50% upfront, 50% when called. - Fund admin: AngelList. Separate, related revenue streams for the media entity (not the fund): - Newsletter sponsorships (Sponsored Deep Dives). - No specific revenue figures disclosed for media side. ## Traction & metrics Media: - Newsletter subscribers: ~59,000 / ~44,875 email list on export at time of chart / "45k subscribers" mentioned in slide 02 - slight discrepancy, all circa same time. - Newsletter cadence: twice weekly. - Growth rate: ~1,000 subscribers/week. - Twitter: 31k followers. - Weekly Twitter Spaces show (Spaces Cadets with Morning Brew's Austin Rief). Syndicate / prior investing: - Not Boring Syndicate: $2.2 million invested across 15 deals. - Personal angel: $62k invested across 15 deals. - Time since first investment: ~9 months. - Markups: 7, including Pipe at 10x+. - Notable co-investors on portfolio deals: a16z, Thrive, Benchmark, Founders Fund, Stripe, D1 Capital, Madrona. Fund raise: - Target raise: $8 million stated in memo intro. - Fund size per terms sheet: $5 million. - **Discrepancy note**: slide 01 says "raising $8 million," slide 10 terms sheet says "Fund Size: $5 million." Likely the $8M includes reserves/SPV capacity or terms were revised. Flag for model assumption. - Reserves: 10% (most follow-ons done out of SPVs). - Deployment timeline: 12–18 months. - Number of investments planned: 25–40. ## Unit economics Check sizes disclosed: - Target check size: $50k–$250k per deal. - Stage mix target: ~⅓ Pre-Seed/Seed, ~⅓ Series A, ~⅓ Series B+. - Investment horizon: standard venture (no explicit stated fund life, but 3-year fee structure implies 10-year life is standard/assumed). ## Competition / moat - Moat framing: media flywheel - writing gives deal access, audience gives portfolio value-add, investments create content. - Explicit competitive angles cited: narrative investing skill (calls on Spotify, Snap, Twitter, Slack), trend identification, storytelling-as-diligence. - No competitive landscape slide or comparison to other micro-VCs / media funds. ## Team & funding ask / use of funds Team: - Packy McCormick - sole GP; prior role: VP Experience / NYC GM at Breather (first US employee, scaled NYC market, 150-person team). - No other named team members. Funding ask: - $8M LP raise (memo) / $5M per terms (see discrepancy note in §5). - Use of funds: deploy into 25–40 venture investments over 12–18 months, $50k–$250k per check, Seed–Series B. - Pipeline teased (not named): fintech follow-on, Web3 publishing platform, men's telehealth ($10M run rate), founder-first fundraising platform. --- ## Recommended financial model - **Archetype + why**: **Venture Fund Financial Model (LP economics + portfolio construction)**. This is not an operating startup - it is a closed-end venture fund. The appropriate model is a fund-level waterfall model: tracks capital calls, deployed capital, portfolio MOIC/IRR at the fund level, management fee income, GP carry, and distributions to LPs. A 3-statement operating model is not applicable. - **Forecast horizon & granularity**: - Fund life: 10 years (standard). - Deployment: 12–18 months per deck. - Annual granularity for fund-level model; quarterly for deployment period. - Exit / distribution modeling: years 3–10. - **Key drivers & assumptions**: - Fund size: $5M (terms) vs. $8M (memo) - model at $5M base, $8M bull scenario - Number of investments: 25–40 → Base: 30 - Average check size: $50k–$250k → at $5M fund × 10% reserve = $4.5M investable ÷ 30 deals = ~$150k avg - Stage mix: ⅓/⅓/⅓ Pre-Seed/Seed / Series A / Series B+ - Management fee: 2% × 3 years, then 0% - Carried interest: 20% - GP commitment: $100k - Reserve ratio: 10% - Deployment pace: 12 months (base), 18 months (bear) - Portfolio MOIC assumptions by stage: - Pre-Seed/Seed: ~30% loss rate, ~3x on survivors, targeting fund-returners - Series A: ~20% loss rate, ~2.5x on survivors - Series B+: ~10% loss rate, ~1.5–2x on survivors - Time to exit: 5–7 years median - DPI timing: minimal in years 1–4; bulk in years 5–9 - Markup from existing syndicate: 7 markups including Pipe at 10x+ - informational only, not in fund - **Scenarios (Base / Bull / Bear - which variables flex)**: - Bear: Fund at $5M, 18-month deployment, 35 deals, modest MOIC (1.5–2x), higher loss rate - Base: Fund at $5M, 12-month deployment, 30 deals, 3x MOIC - Bull: Fund at $8M, 10-month deployment, 30 deals, 4–5x MOIC (narrative tailwind, Pipe-like outlier) - Key flex variables: fund size, deployment speed, portfolio MOIC, number of markups/carry events - **Required sheets / outputs**: 1. Inputs & Assumptions (fund size, fee, carry, stage mix, check sizes) 2. Capital Deployment Schedule (deal-by-deal or cohort-based, by quarter) 3. Portfolio Construction (# deals by stage, avg check, reserve allocation) 4. Management Fee Income (2% × committed capital, years 1–3) 5. Portfolio Performance (MOIC by cohort/stage, NAV, unrealized gains) 6. Fund Waterfall (return of capital → preferred return if any → carry split) 7. LP Economics (DPI, RVPI, TVPI, net IRR) 8. GP Economics (management fees, carry dollars, GP co-invest returns) 9. Scenario Summary (Bear/Base/Bull on one page) ## Frequently asked questions ### Is the Not Boring Capital Fund I financial model free? Yes. The Not Boring Capital Fund I model is a free Excel download with live formulas. ### Can I change the assumptions? Yes. The workbook is editable and its live formulas recalculate when assumptions change.