In a recent installment of the NVCA’s "Meet a VC" series, Will Borthwick of BOLD Capital Partners offered an insightful perspective on the dynamic world of venture capital, chronicling his journey from traditional finance to the cutting edge of exponential technologies. His firm, BOLD Capital, distinguishes itself by investing in founders dedicated to building technologies that promise not just incremental improvements, but transformative shifts capable of advancing humanity. This interview underscores the evolving role of venture capitalists and the profound ambition driving investments in the twenty-first century’s most audacious innovations.
The Genesis of a Vision: From Wall Street to Exponential Ventures
Will Borthwick’s professional trajectory is marked by a distinctive pivot from the established corridors of finance to the speculative, high-stakes realm of frontier technology. His early career forged a robust foundation in economic policy and corporate finance, including a significant tenure at the Federal Reserve, followed by immersion in investment banking and private equity buyouts of major technology companies. This rigorous background equipped him with a deep understanding of market mechanics, valuation, and large-scale corporate strategy—skills that would prove invaluable in the venture capital ecosystem. Approximately eight and a half years ago, Borthwick made the strategic move to BOLD Capital Partners. This decision was driven by an alignment with the firm’s distinctive thesis centered on "exponential technologies." Unlike linear advancements, these technologies exhibit capabilities that improve at an accelerating rate, rendering previously impossible feats feasible within remarkably short timeframes—often within 18 months. This rapid evolution prompts a fundamental question for BOLD Capital: how can these shifts be harnessed to address truly monumental and impactful global challenges? As Borthwick eloquently states, the core inquiry is, "How do you fundamentally move the needle to make humanity better?"
BOLD Capital’s investment portfolio vividly illustrates this ambitious ethos, reflecting a commitment to pioneering ventures that push the boundaries of what is conceivable. The firm’s interests span a diverse array of groundbreaking fields, including stratospheric drones designed for widespread connectivity, de-extinction projects aiming to revive lost species, the development of advanced humanoids, and sophisticated AI-enabled hardware. These investments are not merely about financial returns; they embody a strategic bet on the future of human capability and societal progress.
A Chronology of Change: The Evolution of Venture Capital
Borthwick’s tenure in venture capital has coincided with a period of unprecedented transformation within the industry. When he first entered the field, the landscape was markedly different from today’s expansive, globalized ecosystem. The venture capital industry, particularly in its earlier decades, was often characterized as a niche, "cottage, bespoke, artisanal industry." Investment rounds, even at the Series A stage, were considerably smaller. Borthwick recalls a time when a Series A round of $15-20 million was considered substantial. This figure stands in stark contrast to contemporary trends, where Series A investments of $150 million are not uncommon, reflecting a massive influx of capital and a corresponding escalation in company valuations and growth expectations.
This exponential growth in capital deployment can be contextualized within a broader timeline of venture capital’s evolution. Originating in the mid-20th century with firms like American Research and Development Corporation (ARDC), early venture capital was often focused on funding nascent technologies from university research. The 1970s and 80s saw the rise of Silicon Valley and iconic firms backing the semiconductor and personal computing revolutions. The dot-com boom of the late 1990s temporarily inflated valuations, followed by a subsequent bust, teaching valuable lessons about market cycles. The post-2008 era, fueled by low interest rates and a proliferation of disruptive digital technologies (mobile, cloud, social media), ushered in the current "supercycle" of venture funding. Global venture capital funding surged from approximately $60 billion in 2008 to over $643 billion in 2021, according to PitchBook data, before a more recent recalibration. This historical context illuminates the dramatic shift Borthwick describes, transforming venture capital from a specialized niche into a significant global financial force.
The Reality of Building: Lessons from the Frontier
One of the most profound lessons Borthwick has gleaned from his experience is the stark difference between perception and reality in company building. Witnessing the meteoric rise of companies like Facebook and Snapchat, scaling from humble origins to multi-billion-dollar valuations, initially led him to believe the process might be more straightforward than it truly is. "It turns out it’s incredibly hard," he observes, emphasizing the immense difficulty not just in building a successful company, but in forging a "generational company" that fundamentally alters industries or society. This challenge is dual-faceted: it’s hard for entrepreneurs to build, and equally arduous for investors to identify, support, and nurture the rare individuals capable of such feats.
This sentiment is widely echoed across the venture ecosystem. Data from various sources, including CB Insights and industry reports, consistently highlight the high failure rate of startups. While exact figures vary, it’s generally accepted that a significant majority of venture-backed companies do not achieve unicorn status or even a successful exit. This underscores the intense pressure on founders, who often shoulder immense responsibility, make critical decisions under uncertainty, and navigate complex market dynamics with limited resources. The journey is frequently characterized by periods of intense stress, isolation, and relentless problem-solving, validating Borthwick’s assertion about the inherent difficulty of the entrepreneurial path.
Beyond the Capital: The Operator-Investor Imperative
Borthwick firmly rejects the notion of venture capital as merely a sophisticated broker-dealer, a transactional entity that collects a fee for wiring funds. For him and BOLD Capital, the true essence of venture capital lies in what transpires after the investment check is written. He likens the relationship between a VC and a portfolio company to a "marriage — not a date or a fling." This commitment implies a deep, enduring partnership, one where the investors are prepared to "get in the bunker with you through thick or thin."
This philosophy resonates with the emerging "operator-investor" model, where VCs bring more than just capital to the table. They leverage their operational experience, industry networks, and strategic insights to actively support their portfolio companies. Borthwick articulates that being a founder is often "one of the loneliest jobs there is," with the ultimate responsibility resting squarely on the CEO’s shoulders. Therefore, the venture capitalist’s role extends far beyond financial oversight. It encompasses providing strategic advice, facilitating crucial introductions, connecting companies with potential customers and executive talent, and offering personal support during challenging times. "Whether it’s a shoulder to cry on or a person to scream at, that’s an important part of the role," Borthwick states, highlighting the emotional and psychological support that can be critical for founders. He views himself and his colleagues as "capital allocators and investors, but in a lot of ways, we’re entrepreneurs ourselves," firmly positioning them as active partners in the company-building process.
This hands-on approach is becoming increasingly vital in a competitive landscape where capital alone is often insufficient. Founders increasingly seek investors who can offer tangible value beyond funding, such as expertise in scaling, market entry, talent acquisition, and crisis management. A 2023 survey by KPMG and CB Insights, for instance, indicated that founders prioritize investors who provide strategic guidance and network access almost as highly as the funding itself. This corroborates Borthwick’s emphasis on the "operator-investor" model, framing it as a necessary evolution for effective venture capital in the modern era.
Bridging the Understanding Gap: Founders, Funders, and Public Perception
Borthwick identifies two critical areas where he believes public perception, particularly among policymakers and observers, often deviates from reality. Firstly, he champions the founders themselves, emphasizing the extraordinary difficulty of building a company and the often-unnecessary roadblocks they encounter. He stresses that founders are typically driven by a genuine desire "to change the world in an impactful way," originating from a place of genuine good. Technology, in his view, is the fundamental engine propelling human progress, and entrepreneurialism is the primary mechanism through which this progress is realized.
This perspective is crucial in an era where technological advancement is frequently met with skepticism or fear. Data from organizations like the Information Technology and Innovation Foundation (ITIF) consistently demonstrate the profound economic and societal benefits of technological innovation, from improved healthcare and communication to enhanced productivity and environmental solutions. Founders, as the pioneers of these innovations, often face regulatory hurdles, market skepticism, and intense competition, yet their underlying motivation remains rooted in problem-solving and betterment.
Secondly, Borthwick seeks to correct the "cartoon version" of venture capitalists—a caricature often depicting them as detached figures conducting superficial meetings, dispensing large checks, and then disengaging. He argues that this portrayal bears little resemblance to the dedicated individuals he works with daily. Reaffirming his earlier point, he reiterates, "We are capital allocators and investors, but in a lot of ways, we’re entrepreneurs ourselves. I’d view it almost as an operator-investor, rather than a passive investor." This distinction is vital for a more nuanced understanding of the venture capital industry, highlighting its active, engaged, and often grueling nature. The NVCA itself, through initiatives like "Meet a VC," strives to demystify the industry, showcasing the human element and the deep commitment of its members to fostering innovation and economic growth.
The Unwavering Optimism: Democratization of Capability
Despite the inherent uncertainties of the global landscape, often amplified by an omnipresent information environment, Borthwick maintains a profound sense of optimism regarding humanity’s long-term trajectory. He frames this optimism around the "longer arc of democratization of capability." This concept posits that access to powerful tools and technologies, once exclusive to large corporations or governments, steadily becomes available to individuals and smaller entities.
He cites a compelling timeline of this democratization:
- Twenty years ago: Enterprises required their own expensive and complex server racks to manage data and computing needs.
- Subsequently: The advent of cloud computing, pioneered by companies like Amazon Web Services (AWS) and Microsoft Azure, made compute power available on demand, dramatically lowering barriers to entry for startups and innovators.
- Today: The rise of "intelligence on demand," particularly through advanced AI models accessible via APIs and user-friendly interfaces, puts unprecedented computational and analytical power "in the palm of our hands."
This progression signifies a profound shift, empowering a vast array of individuals and small teams to tackle complex problems that were previously beyond their reach. "When you give people opportunity and capability, they do really impressive things," Borthwick asserts. He firmly believes this trend will only accelerate, leading to continuous improvements "tomorrow, and a year from now, and five years from now." He concludes with a powerful metaphor: "It’s like we have superpowers – and our superpowers just keep getting stronger."
This technological democratization has far-reaching implications. It fuels the startup ecosystem by reducing initial capital requirements, fostering rapid prototyping, and enabling lean teams to compete with established players. It also contributes to a more equitable distribution of innovation, allowing ideas to emerge from diverse backgrounds and geographies. This underlying belief in human ingenuity, amplified by increasingly accessible tools, is what sustains Borthwick’s commitment and passion for the venture capital space.
Implications and the Infrastructure of Tomorrow
BOLD Capital’s focus on "exponential technologies" carries significant broader implications for society. Investments in areas like de-extinction, while seemingly fantastical, raise profound ethical questions alongside scientific promise. Humanoids and AI-enabled hardware introduce debates around automation, employment, and the very definition of human interaction. Stratospheric drones, while offering connectivity, also touch upon issues of surveillance and airspace regulation. These are not merely technological advancements; they are fundamental shifts in humanity’s potential and responsibility.
The companies BOLD Capital backs are not simply developing new products; they are, in Borthwick’s view, "building the infrastructure of what humanity will be capable of next." This perspective underscores the critical role of venture capital in shaping the future, acting as a crucial bridge between nascent scientific breakthroughs and their real-world application. The challenges for policymakers, therefore, are immense: how to foster innovation while ensuring ethical development, how to adapt regulatory frameworks to rapidly evolving technologies, and how to prepare society for the profound changes these "superpowers" will bring. The dialogue between venture capitalists, founders, and public stakeholders becomes paramount in navigating this complex and exciting future.
In essence, Will Borthwick’s narrative is a testament to the evolving role of venture capital—a role that transcends mere financial transactions to embrace deep partnership, visionary thinking, and an unwavering commitment to harnessing technology for human advancement. His journey from the Federal Reserve to the frontier of exponential tech embodies a strategic blend of financial acumen and a profound belief in the transformative power of innovation, positioning BOLD Capital Partners at the forefront of shaping tomorrow’s world.
