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Tuesday, August 19, 2025

CapXcentric founder Warwick Donaldson on slowing down, staying small and when to keep away from VC funding


In April 2024, I began my eighth enterprise, CapXcentric, a pre-seed to Sequence 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 means of the capital elevate 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 tens of millions—and typically billions—of {dollars} round, constructing  scalable programs, and crafting complicated monetary fashions, one thing shifted. I needed  extra function and fewer noise. 

I grew up 10km from Mortlake, a small city of simply 1,500 folks, 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 automotive 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 seems to be like. And I select to not search it in my enterprise.

Not each enterprise ought to searching 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 consequence? Burnout, lack of mission, and companies collapsing underneath the load of expectations they have 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 deal with their well-being and thoughtfully align their progress methods with their values, they create corporations that traders belief and need to again for the lengthy haul.

So if a founder is set to boost VC capital, I’m all-in. However I begin by searching for  proof to construct a powerful case reasonably than assuming it’s the one path ahead. My position is to assist founders determine the proper approach to develop their firm, whether or not that’s by means of VC funding, partnerships, natural progress, or one thing else solely. 

What I discovered about steadiness in high-growth environments 

Let me be clear: I’m not anti-growth.

I love working with formidable startups tackling large, complicated issues in industries like MedTech, CleanTech, and software program. I thrive within the chaos of pre-seed to Sequence A fundraising – it’s fast-moving, high-stakes, and deeply rewarding. 

However right here’s what I do know: balanced founders make higher choices.

They lead more practical groups. They create cultures the place folks really need to work.

In brief, wholesome management isn’t only a nice-to-have—it’s a aggressive benefit. 

How I discovered to decelerate 

Two years in the past, I used to be identified with ADHD. Final yr, I bought a listening to assist 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 power sciatica. 

These experiences compelled 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 discovered the right way to be current within the small moments of life.

These aren’t luxuries – they’re what preserve me balanced and grounded. 

Working CapXcentric can be an enormous a part of my function. I love 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 actually, I hope it doesn’t. I need to  continue to grow and evolving. This is only one chapter in a a lot larger 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: 

“Cease ready for others to be the chief you need them to be. Exit and be that chief  your self.” 

That recommendation modified every part. 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 by day.

Scaling isn’t at all times the reply 

collapse, house of cards

Scaling rapidly brings larger dangers too. Picture: AdobeStock

The startup world typically equates success with “larger is healthier.” However we’ve all seen what occurs when issues scale with out sufficient thought. 

Too many companies lose their function once they develop too quick. The mission will get blurry, the groups burn out, and that unique 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 progress ambitions, I additionally need to maintain myself accountable to  creating the world I need to dwell in—not simply speak about constructing thoughtfully, however really  do it. Listed here are just a few pledges I’ve ensured are baked into the DNA of CapXcentric (all  publicly accessible on our web site): 

  1. A Code of Conduct and Ethics – Transparency and integrity aren’t negotiable. 
  2. Donating a Minimal of 25% of Income – Giving again isn’t an afterthought—it’s a part of who we’re. 
  3. Participating Neurodivergent and Underrepresented Expertise – We actively work with folks and communities who are sometimes neglected. 
  4. Working Solely with Startups That Do No Hurt – If a enterprise causes hurt, I’m not . 
  5. Sustainability Pledge – We’re dedicated to offsetting 100% of our carbon emissions and decreasing our environmental footprint. 
  6. Annual Impression 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 just a few 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 value of low-cost, disposable items. I’ve hated “disposable” merchandise ever since. 
  • Seeing Homelessness Up Shut: I’ve watched household and mates lose every part due to dangerous luck, psychological well being struggles, and job instability. It made me query why our programs fail the individuals who want help probably the most.
  • Going through Dependancy and Trauma: Throughout COVID, I give up alcohol, cigarettes, and  medication. I used to be additionally identified with PTSD – one thing I didn’t absolutely perceive till lately. Confronting my concern of rejection and my people-pleasing tendencies has been one of many hardest and most rewarding issues I’ve ever accomplished. 

Constructing Thoughtfully – my recommendation 

If I may give founders one piece of recommendation, it’s this: construct thoughtfully.

Perceive the distinction between what’s anticipated and what’s proper for you

  • Prioritise Your Nicely-Being: You’ll make higher choices if you’re wanting  after your psychological and bodily well being. 
  • Know Your “Why”: For those who’re clear about your function, you’re much less prone to get  sidetracked. 
  • Query Standard 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—together with your group, your clients, and your traders. 

Acknowledging privilege and staying true to what issues 

I do know that privilege has performed a task in my journey. I’ve had alternatives that others might not have had. That makes it much more essential for me to make use of my platform thoughtfully and advocate for a greater approach to do enterprise. 

Scaling could be the dominant narrative, however it’s not the one approach 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 folks you empowered, and the instance you  set for others. 

For me, that’s the story I need to inform.



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