The interview with Will Borthwick of BOLD Capital Partners, featured in the National Venture Capital Association’s (NVCA) "Meet a VC" series, offers a profound exploration into the philosophy underpinning investment in transformative technologies and the evolving dynamics of the venture capital industry. Borthwick, a veteran whose career spans the Federal Reserve, investment banking, and private equity, now stands at the forefront of funding innovations designed to fundamentally advance humanity. His insights illuminate BOLD Capital’s unique thesis, the complexities of supporting groundbreaking entrepreneurs, and a steadfast optimism regarding the trajectory of human progress.
A Career Forged in Finance, Focused on the Future
Will Borthwick’s trajectory into the venture capital realm is anything but conventional, providing him with a multifaceted perspective on capital allocation and market dynamics. His professional journey commenced within the intricate corridors of the Federal Reserve, an institution renowned for its deep analytical rigor and macroeconomic oversight. This early experience likely instilled a comprehensive understanding of financial systems, regulatory frameworks, and the broader economic forces that shape markets—knowledge that would prove invaluable in navigating the often-volatile world of technology investment. The Federal Reserve’s mandate to maintain economic stability and regulate financial institutions provides a unique lens through which to view risk and opportunity, a foundation distinct from purely commercial pursuits.
Transitioning from public finance, Borthwick immersed himself in the high-stakes environment of investment banking. Here, he honed critical skills in deal structuring, valuation, and strategic advisory, engaging with a diverse array of corporations across various sectors. This phase exposed him to the intricate mechanisms of corporate finance, the demands of high-growth enterprises, and the art of complex transaction execution. Subsequently, his tenure in private equity buyouts, particularly of large technology companies, offered a hands-on education in operational improvements, long-term value creation, and the intricate art of scaling established businesses. This experience provided a crucial counterpoint to his later venture capital work, offering insight into the life cycle of companies beyond their nascent stages, focusing on mature operational excellence and market consolidation strategies.
Approximately eight and a half years ago, Borthwick made the pivotal shift to BOLD Capital Partners. This move was driven by a compelling combination: the firm’s distinctive team, comprised of former entrepreneurs and seasoned investors, and a visionary investment thesis centered on what they term "exponential technologies." Unlike traditional investment models that might project linear growth, BOLD Capital specifically targets innovations whose capabilities do not merely improve incrementally but rather accelerate at an exponential rate. This philosophy underpins their belief that what was once technologically inconceivable just eighteen months prior often becomes entirely feasible today, opening vast new possibilities for addressing humanity’s most pressing challenges. The fundamental question guiding BOLD Capital’s investments is not merely about commercial viability, but "How do you fundamentally move the needle to make humanity better?" This profound ambition is distinctly reflected in BOLD’s diverse portfolio, which includes pioneering ventures in stratospheric drones, cutting-edge de-extinction projects, advanced humanoids, and sophisticated AI-enabled hardware. These investments are not just in products, but in the foundational infrastructure that will define the next era of human capability.
Defining Exponential Technologies: A Paradigm Shift in Innovation
The concept of "exponential technologies" is central to BOLD Capital’s investment strategy and Borthwick’s vision. This term refers to technologies whose performance or cost-effectiveness doubles or halves, respectively, at regular intervals, rather than progressing at a steady, additive pace. A prime historical example is Moore’s Law, which famously predicted the doubling of transistors on integrated circuits every two years, driving the relentless miniaturization and power increase of computing devices for decades. However, BOLD Capital’s thesis extends beyond mere computing power, encompassing advancements across a spectrum of scientific and engineering disciplines where the rate of progress itself is accelerating. These include fields like artificial intelligence, robotics, biotechnology, nanotechnology, and advanced materials science.
For instance, the firm’s investment in stratospheric drones represents a bet on a future where aerial platforms can provide persistent surveillance, communication networks, or environmental monitoring with unprecedented reach and efficiency, far exceeding the capabilities of traditional aircraft or satellites. Such platforms promise to revolutionize global connectivity and data collection, leveraging advancements in battery technology, lightweight materials, and autonomous navigation. De-extinction projects, while highly controversial and scientifically ambitious, embody the ultimate exponential leap in biotechnology—the potential to restore lost biodiversity, reintroduce species like the woolly mammoth, and perhaps even re-engineer ecosystems. This area of investment highlights a willingness to engage with high-risk, high-reward ventures that could fundamentally alter humanity’s relationship with the natural world. Humanoids and AI-enabled hardware signify a future where artificial intelligence is not confined to software but embodied in physical forms, capable of interacting with the world in increasingly sophisticated ways. These advancements could revolutionize labor, care for the elderly, exploration in hazardous environments, and even personalized education. These are not merely incremental improvements on existing technologies; they are foundational shifts that promise to unlock entirely new paradigms of capability and problem-solving. BOLD Capital actively seeks out ventures that harness these non-linear advancements to tackle "really big and impactful problems," underscoring their commitment to societal progress alongside financial returns.
The Hard-Won Lessons of Venture Capital: Scaling Challenges and Capital Influx
Borthwick’s journey has provided him with invaluable lessons, particularly concerning the true arduousness of company building and the dramatic transformation of the venture capital landscape. Early in his career, observing the meteoric rise of companies like Facebook and Snapchat from nascent startups to multi-billion-dollar valuations, he admits to having underestimated the sheer difficulty involved. "It turns out it’s incredibly hard," Borthwick states, "It’s even harder to build a generational company." This sentiment resonates with countless founders who grapple daily with product-market fit, team building, fundraising, navigating competitive markets, and scaling operations under immense pressure. The path from innovative idea to global enterprise is fraught with unforeseen obstacles, requiring not just ingenuity but extraordinary resilience and adaptability.
The challenge, Borthwick notes, extends equally to investors: "But it’s also very hard to invest, support, and find the entrepreneurs capable of doing it." This highlights the dual complexity of venture capital: identifying rare talent with truly disruptive visions and providing the nuanced, long-term support required to nurture nascent ideas into market-dominant entities. The art of venture capital lies in discerning potential amidst uncertainty and committing resources to a vision that often seems improbable to outsiders.
Perhaps the most significant shift Borthwick has witnessed is the colossal influx of capital into what was once considered a niche, "small, cottage, bespoke, artisanal industry." When he began his career in venture, a Series A funding round of $15-20 million was considered substantial, indicative of a mature early-stage company ready for significant growth. Today, the landscape has been utterly transformed, with $150 million Series A rounds becoming a routine part of the conversation. This ten-fold increase in early-stage capital within a relatively short period reflects several macroeconomic and industry-specific trends that have reshaped the global innovation economy.
A Chronology of Capital Evolution: From Niche to Mainstream
The rapid escalation in venture capital deployment, particularly at the early stages, can be traced through a distinct chronology. In the early 2000s, following the dot-com bust, venture capital experienced a contraction, becoming more conservative and focused. Over the subsequent decade, as internet penetration grew and software-as-a-service (SaaS) models gained traction, capital inflows gradually increased, driven by proven business models and expanding digital markets. However, the true acceleration began in the 2010s and intensified into the early 2020s, fueled by a confluence of factors:
- Increased Institutional Participation: Pension funds, university endowments, sovereign wealth funds, and other institutional investors, seeking higher returns in a sustained low-interest-rate environment, significantly increased their allocations to alternative assets, including venture capital. This influx provided LPs (Limited Partners) with access to a broader, deeper pool of capital. According to data from PitchBook and NVCA, global venture capital funding surged from around $100 billion annually in the early 2010s to over $600 billion by 2021, demonstrating this exponential growth.
- Rise of Mega-Funds: The emergence of larger, multi-stage venture firms and corporate venture arms capable of deploying massive amounts of capital across various funding rounds, from seed to growth equity. Funds exceeding $1 billion became more common, allowing for larger individual investments.
- Global Competition for Innovation: A more competitive global innovation landscape, with investors from around the world vying for stakes in promising startups, particularly in emerging technology hubs. This competition drove up valuations and check sizes as VCs sought to win deals.
- Capital-Intensive Deep Tech: The very "exponential technologies" BOLD Capital invests in—such as AI, robotics, biotechnology, space tech, and quantum computing—often require significantly more upfront capital for research and development, specialized talent acquisition, and infrastructure compared to pure software plays. These fields demand substantial, sustained investment before commercialization.
- Fear of Missing Out (FOMO): The unparalleled success stories of unicorns (companies valued at $1 billion or more) and decacorns (over $10 billion) created a powerful incentive for investors to participate early and aggressively in perceived market leaders, leading to more competitive bidding and larger pre-emptive rounds.
This exponential growth in capital has profound implications. For founders, it can mean less dilution at early stages, a longer runway to achieve critical milestones before needing to raise subsequent rounds, and the ability to scale operations more rapidly. However, it also raises expectations, pushing companies to demonstrate rapid scalability, achieve ambitious targets, and pursue market dominance more aggressively. For VCs, larger check sizes necessitate even deeper due diligence, a more robust support infrastructure, and a higher tolerance for risk, as the potential losses on failed ventures also scale proportionally. The industry has effectively moved from an era of careful seed-planting to one of strategic cultivation on an industrial scale, demanding more from both entrepreneurs and their financial partners.
Beyond the Check: The Operator-Investor Model
Will Borthwick firmly believes that venture capital transcends mere financial transactions. He articulates a philosophy where the relationship between a VC and a portfolio company is far deeper than a superficial exchange of funds. "When we invest into a company, it’s truly a marriage – not a date or a fling. We get in the bunker with you through thick or thin." This powerful analogy underscores a commitment that extends far beyond the wire transfer, implying a long-term partnership built on trust, shared goals, and mutual support.
In Borthwick’s view, the true value of a venture capitalist lies in the support provided after the investment is made. Being a founder, particularly a CEO, is widely acknowledged as one of the loneliest and most demanding roles in the business world. The ultimate responsibility for every success and failure rests squarely on their shoulders, often leading to intense pressure and isolation. Therefore, the VC’s job involves showing up consistently and meaningfully. This encompasses a broad spectrum of engagement: offering strategic advice, facilitating crucial introductions to potential customers, partners, and executive talent, and providing emotional support through the inevitable highs and lows of building a company.
Borthwick emphasizes the importance of both professional and personal calls, stating, "Whether it’s a shoulder to cry on or a person to scream at, that’s an important part of the role." This highlights the significant psychological demands placed on founders and the critical need for empathetic, trusted advisors who understand the unique pressures of entrepreneurship. He frames this role as an "operator-investor," a designation that distinguishes BOLD Capital from more passive investment models. This approach demands that VCs possess not only financial acumen but also practical operational experience, a deep understanding of market dynamics, and the ability to provide hands-on guidance in areas ranging from product development to go-to-market strategy.
The Implications of the Operator-Investor Model
The operator-investor model represents a significant evolution in venture capital. Instead of simply providing capital and board oversight, these VCs actively engage in:
- Strategic Guidance: Leveraging their industry expertise, operational experience, and extensive network to help founders refine their vision, market strategy, and product roadmap, particularly in nascent or rapidly evolving sectors.
- Talent Acquisition: Assisting with executive searches, recruitment of key personnel, and building strong organizational structures, which is critical for scaling a startup into a robust enterprise. This often involves tapping into proprietary talent networks.
- Business Development: Opening doors to potential clients, strategic partners, and crucial industry alliances that can accelerate growth and market penetration, offering warm introductions that might otherwise be unattainable.
- Follow-on Fundraising: Guiding companies through subsequent funding rounds, leveraging their relationships with later-stage investors and ensuring a smooth transition to the next phase of growth.
- Crisis Management: Providing counsel and support during challenging periods, whether market downturns, product failures, competitive threats, or internal conflicts, acting as a seasoned sounding board.
This hands-on approach is particularly crucial for companies operating in the exponential technology space, where the pace of change is rapid, the technical hurdles are immense, and market adoption pathways are often uncharted. The inferred "statements" from founders would likely echo the sentiment that such comprehensive support is indispensable, transforming VCs from mere capital providers into true strategic partners and confidantes. The operator-investor model acknowledges that groundbreaking innovation requires more than money; it requires mentorship, resilience, and a shared commitment to overcoming monumental challenges.
Addressing Misconceptions: Founders, VCs, and the Engine of Progress
Will Borthwick uses his platform to address prevalent misconceptions about both founders and venture capitalists, particularly for policymakers and the broader
