In a recent installment of the National Venture Capital Association’s (NVCA) "Meet a VC" series, Will Borthwick, a distinguished Partner at BOLD Capital Partners, offered profound insights into the evolving landscape of venture capital and the imperative of investing in "exponential technologies." The series, designed to illuminate the people, perspectives, and convictions shaping the venture capital industry, provided a platform for Borthwick to articulate BOLD Capital’s distinctive thesis: backing founders who are not merely building products but fundamentally advancing human capability through technologies that scale non-linearly. His journey from the echelons of traditional finance to the vanguard of frontier technology investment underscores a strategic shift in capital allocation towards disruptive innovation with a profound societal impact.
The NVCA’s Mandate and the "Meet a VC" Series
The National Venture Capital Association (NVCA) serves as the voice of the U.S. venture capital industry, advocating for policies that foster innovation and entrepreneurship. Its "Meet a VC" series is a cornerstone of its educational outreach, providing invaluable direct access to the thought leaders driving the industry. By featuring prominent figures like Will Borthwick, the NVCA aims to demystify venture capital, share best practices, and highlight the strategic thinking that underpins successful investment in high-growth, high-risk ventures. These conversations are crucial for informing aspiring entrepreneurs, potential limited partners, and policymakers about the intricate dynamics of venture funding and its critical role in economic development and technological progress. Such dialogues foster transparency and build a more informed ecosystem, ensuring that the venture community remains robust and responsive to global challenges and opportunities.
Will Borthwick’s Journey: From Federal Reserve to Frontier Investing
Will Borthwick’s professional trajectory is a testament to a career meticulously building a robust understanding of financial markets and technological innovation. His path to venture capital was anything but conventional, originating within the formidable corridors of the Federal Reserve. This early experience provided him with an unparalleled macro-economic perspective, understanding the levers of monetary policy, financial stability, and systemic risk – knowledge that would prove invaluable in assessing the broader market implications of nascent technologies.
Following his tenure at the Fed, Borthwick transitioned into the demanding world of investment banking. Here, he honed his skills in deal structuring, financial analysis, and corporate strategy, working on complex transactions that shaped industries. This period was characterized by rigorous due diligence and a deep dive into corporate valuations, preparing him for the high-stakes environment of private equity. In private equity, Borthwick focused on large-scale buyouts of established technology companies. This experience afforded him a granular understanding of operational efficiency, market positioning, and the challenges associated with scaling mature enterprises. It was during this phase that he likely observed the limitations of incremental growth and the potential for truly transformative, exponential shifts.
Approximately eight and a half years ago, Borthwick made the deliberate pivot to BOLD Capital Partners. This move was driven by a compelling alignment with BOLD’s visionary team of former entrepreneurs and investors, and, crucially, its core investment thesis: "exponential technologies." This background, spanning regulatory bodies, high finance, and private equity, endowed Borthwick with a unique blend of analytical rigor, market acumen, and an appreciation for both stability and disruption, positioning him perfectly to identify and nurture the next generation of world-changing companies.
BOLD Capital’s Thesis: Investing in Exponential Technologies
At the heart of BOLD Capital Partners’ strategy is the concept of "exponential technologies." Unlike technologies that improve linearly, offering incremental gains year over year, exponential technologies demonstrate a compounding growth in capabilities. This means that what was considered technologically infeasible just eighteen months prior can become a practical reality today. BOLD Capital actively seeks out companies that are leveraging these rapid advancements to address "really big and impactful problems," driven by the overarching question: "How do you fundamentally move the needle to make humanity better?"
This investment philosophy is rooted in the understanding that certain technological domains are experiencing unprecedented rates of advancement, fueled by phenomena like Moore’s Law (for computing power), Metcalfe’s Law (for network effects), and advancements in fields like genomics and artificial intelligence. These areas include:
- Artificial Intelligence (AI) and Machine Learning (ML): AI’s capabilities are expanding exponentially, impacting everything from drug discovery to autonomous systems. BOLD looks for AI-enabled hardware that integrates intelligence directly into physical systems, creating new possibilities for interaction and automation.
- Biotechnology and Genomics: Advances in gene editing (CRISPR), synthetic biology, and computational biology are opening doors to revolutionary applications, including disease eradication, personalized medicine, and even "de-extinction" efforts aimed at bringing back lost species, as referenced in BOLD’s portfolio.
- Robotics and Humanoids: The development of increasingly sophisticated robots, particularly humanoids, promises to transform industries from manufacturing to healthcare, enhancing human capabilities and automating complex tasks.
- Space Technology: Investments in stratospheric drones and broader space infrastructure reflect a belief in the exponential growth of space as a domain for communication, observation, and resource utilization, pushing the boundaries of human presence and activity beyond Earth.
- Quantum Computing: While still in its nascent stages, quantum computing holds the potential for exponential leaps in processing power, capable of solving problems intractable for even the most powerful classical supercomputers.
- Advanced Materials: Innovations in materials science, like graphene or self-healing composites, can unlock exponential performance gains in various applications.
The market implications of these technologies are vast. According to various reports, the global AI market, for instance, is projected to grow from hundreds of billions to trillions of dollars within the next decade. The biotech sector continues to attract record investment, with a focus on gene therapies and novel drug development. These trends validate BOLD Capital’s concentrated focus, suggesting that the firms leveraging these exponential curves are poised for significant value creation and societal impact. BOLD’s portfolio, therefore, is not merely a collection of companies; it represents a deliberate bet on the foundational technologies that will redefine human civilization.
The Seismic Shift in Venture Capital Funding
Borthwick’s observations on the evolution of the venture capital industry highlight a dramatic transformation from its earlier days. He recalls a time when VC was a "small, cottage, bespoke, artisanal industry." In those nascent years, a Series A funding round of $15-20 million was considered substantial. This reflected a more cautious, hands-on approach, often with smaller funds and a greater emphasis on seed-stage development.
Today, the landscape is profoundly different. The venture capital industry has witnessed an unprecedented influx of capital, driven by global liquidity, the proven returns of tech investments, and a broader recognition of innovation’s economic power. Borthwick notes that $150 million Series A rounds are now "part of the conversation." This escalation in deal size is supported by industry data: global venture capital funding has surged dramatically over the last decade, with peak years seeing hundreds of billions of dollars deployed annually. For instance, PitchBook-NVCA Venture Monitor reports show consistent growth in capital raised by VC funds and deployed into startups. This massive capital flow has several implications:
- Increased Competition: More capital means more firms competing for promising deals, potentially driving up valuations.
- Larger Fund Sizes: Venture funds themselves have grown significantly, enabling them to write larger checks and participate in later-stage rounds.
- Global Reach: VC funding is no longer confined to traditional hubs; capital flows globally, seeking innovation wherever it arises.
- Professionalization: The industry has become more sophisticated, with dedicated teams for sourcing, due diligence, portfolio support, and exit strategies.
This shift underscores the mainstreaming of venture capital as a critical asset class and a primary engine for technological advancement. While it brings opportunities for larger-scale innovation, it also presents challenges, such as managing inflated valuations and ensuring judicious capital deployment.
Beyond the Check: The Operator-Investor Model
For Will Borthwick, venture capital transcends merely writing a check. He emphatically states, "Venture isn’t a fancier broker-dealer collecting a fee on the wire. It’s what happens after." This philosophy underpins BOLD Capital’s approach, framing investment as a profound partnership – "truly a marriage, not a date or a fling." This commitment means being "in the bunker with you through thick or thin," a testament to the long-term, high-stakes nature of building a generational company.
Being a founder, as Borthwick observes, is one of the loneliest jobs. The immense responsibility of leading a startup, where "the buck stops with the CEO," often entails navigating complex challenges with limited immediate support. In this context, the role of a venture capitalist extends far beyond financial provision. BOLD Capital embodies the "operator-investor" model, where VCs bring their own entrepreneurial and operational experience to bear. This involves:
- Strategic Advice: Offering counsel on product-market fit, growth strategies, and market expansion.
- Network Access: Facilitating introductions to key customers, strategic partners, and executive talent.
- Talent Acquisition: Assisting in recruiting top-tier talent, a perennial challenge for fast-growing startups.
- Emotional Support: Providing a crucial "shoulder to cry on or a person to scream at." This empathetic role acknowledges the psychological toll of entrepreneurship, recognizing that founders need both professional guidance and personal understanding.
This hands-on, deeply engaged approach is becoming increasingly vital in a competitive startup ecosystem. Founders often prioritize VCs who can offer more than just capital, seeking genuine partners who can help them overcome obstacles and accelerate growth. Data suggests that startups with actively engaged VCs tend to outperform those with more passive investors, demonstrating the tangible value of this operator-investor model. Borthwick’s vision aligns with this trend, positioning BOLD Capital not just as a financier but as an integral part of the entrepreneurial journey.
Bridging the Understanding Gap: Founders, VCs, and Policymakers
Borthwick identifies two critical areas where greater public and policymaker understanding is needed. Firstly, regarding founders, he emphasizes the extraordinary difficulty of company building and the often-unnecessary roadblocks encountered. He stresses that founders "start companies to change the world in an impactful way. It comes from a place of good." This altruistic motivation, often overlooked in a focus on profit, is a powerful engine for innovation. Technology, Borthwick argues, has consistently been the primary driver of human progress, and entrepreneurialism is the fundamental mechanism through which this progress is realized. Policymakers who fail to grasp this inherent good risk stifling innovation through overly burdensome regulations or a lack of supportive frameworks.
Secondly, Borthwick seeks to dispel the "cartoon version" of venture capitalists – caricatured as aloof figures who engage in "five-minute meetings, large checks, walking away." This stereotype, he contends, bears little resemblance to the reality of the people he works with. As 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 crucial for accurate public perception. True VCs are deeply invested in the success of their portfolio companies, committing significant time, expertise, and resources beyond mere financial contribution.
For policymakers, understanding this nuanced reality is paramount. Policies that support venture capital and entrepreneurship – such as favorable tax treatments for long-term investments, streamlined regulatory processes for emerging technologies, and robust intellectual property protections – are vital. Without an appreciation for the symbiotic relationship between capital, innovation, and societal benefit, there is a risk of creating environments hostile to the very forces that drive economic growth and human advancement. The NVCA, through its advocacy efforts, continually works to educate lawmakers on these very issues, aiming to foster a policy landscape conducive to entrepreneurial flourishing.
An Optimistic Outlook on Humanity’s Future
Despite the pervasive uncertainties of the modern world, amplified by a constant, often overwhelming, information environment, Will Borthwick maintains a steadfast optimism about humanity’s underlying trajectory. He frames this optimism around a "longer arc of democratization of capability." This concept illustrates how increasingly sophisticated tools and resources, once exclusive to large institutions or nation-states, become accessible to individuals and smaller teams, exponentially expanding human potential.
Borthwick traces this evolution with compelling examples:
- Twenty years ago: Building a robust digital presence required significant capital investment in "your own server racks," maintaining complex physical infrastructure.
- Then came cloud compute on demand: Services like Amazon Web Services (AWS) or Google Cloud democratized access to scalable computing power, allowing startups to build sophisticated applications without massive upfront infrastructure costs. This dramatically lowered the barrier to entry for digital businesses.
- Now we have intelligence on demand in the palm of our hands: The proliferation of AI tools, advanced smartphones, and ubiquitous connectivity means that powerful analytical capabilities, complex algorithms, and vast information resources are readily available to billions.
This progression empowers individuals and small teams to "do really impressive things." As Borthwick eloquently puts it, "When you give people opportunity and capability, they do really impressive things. And it’s only going to get better tomorrow, and a year from now, and five years from now. It’s like we have superpowers – and our superpowers just keep getting stronger." This perspective is a powerful counterpoint to techno-pessimism, highlighting technology’s capacity to amplify human ingenuity and problem-solving abilities.
This profound belief in humanity’s increasing capabilities is what sustains Borthwick’s commitment to venture capital. The companies BOLD Capital backs are not merely developing new products or services; they are building the fundamental infrastructure that will define "what humanity will be capable of next." This involves creating the tools, platforms, and foundational technologies that will enable future generations to tackle even grander challenges, from climate change and resource scarcity to health and education. It’s a vision that extends beyond immediate financial returns, aiming instead for enduring societal impact and a profoundly enhanced human future.
In conclusion, Will Borthwick’s insights from the "Meet a VC" series paint a comprehensive picture of modern venture capital: a dynamic, capital-intensive industry driven by a mission to fund exponential technologies. His journey, BOLD Capital’s thesis, and his advocacy for a deeper understanding of founders and VCs underscore a commitment that extends far beyond the financial transaction. It is a commitment to partnership, innovation, and an unwavering belief in humanity’s capacity to leverage technology for a better, more capable future.
