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1/ I want to shed light on the underrated types of capital that no one is talking about
There is so much chatter about Venture Capital all around the Internet but founders, makers, and builders need other things before VC
What are these *underrated* kinds of capital?
There is so much chatter about Venture Capital all around the Internet but founders, makers, and builders need other things before VC
What are these *underrated* kinds of capital?
2/ I call them Belief Capital and Social Capital. They are different than the traditional Venture Capital and have nothing to do with doling out cash.
3/ Why do they matter?
Because these kinds of capital are what’s missing from the ecosystems that are trying to replicate the magic of Silicon Valley. The common misconception is that pumping out money is all that matters to be a fertile land for billion dollar startups.
Because these kinds of capital are what’s missing from the ecosystems that are trying to replicate the magic of Silicon Valley. The common misconception is that pumping out money is all that matters to be a fertile land for billion dollar startups.
4/ It couldn’t be farther from the truth. My obviously biased take is that what’s missing is the two types of capital I discuss below.
5/ If you intend to support new entrepreneurs and create breeding grounds for ambitious projects, you’ll want to learn about what’s beyond Venture Capital.
How do I know this?
From my interactions with hundreds of makers/builders each week.
How do I know this?
From my interactions with hundreds of makers/builders each week.
6/ I host monthly meetups, weekly mastermind sessions for makers, and built community products in the past. I interact w/ about 100-120 founders a week on average. Now, I am running the On Deck No-Code Fellowship. https://www.beondeck.com/no-code
7/ But first, what is VC?
Venture Capital is defined as monetary capital invested in a project in which there is a substantial element of risk, typically a new or expanding business. The core thesis is purchasing equity of a new idea/startup/company by investing money.
Venture Capital is defined as monetary capital invested in a project in which there is a substantial element of risk, typically a new or expanding business. The core thesis is purchasing equity of a new idea/startup/company by investing money.
8/ What is Belief Capital?
Belief capital is the first and foremost investment that goes into an idea. This is an intangible investment.
Belief capital is the first and foremost investment that goes into an idea. This is an intangible investment.
9/ As a founder, you have to be the no#1 believer of your idea but this is not always easy since your mind can talk you out of your best ideas simply because it can over analyze the downside.
10/ The people around you who can talk you into pursuing your ideas are belief capitalists. They see the potential upside, ways in which your idea can be developed, and most importantly your personal worthiness in all this.
11/ They believe in you first and hence in the idea you have chosen to pursue.
12/ It’s very rare to find belief capitalists because they have to share these 4 traits:
1) root for your success without feeling insecure
2) see the vision of your idea along w/ you when it’s just an inkling
3) put aside ego/wanting credit for your win
1) root for your success without feeling insecure
2) see the vision of your idea along w/ you when it’s just an inkling
3) put aside ego/wanting credit for your win
13/ 4) be totally non-judgemental if your idea bombs upon launch
The fascinating thing is anyone can be a belief capitalist if they decide to. It won’t cost you anything except perhaps a few minutes of your time and attention.
The fascinating thing is anyone can be a belief capitalist if they decide to. It won’t cost you anything except perhaps a few minutes of your time and attention.
14/ But at the receiving end, for a founder, this can be life-changing.
Recently, I had experienced this first hand a couple of times.
The power of Belief Capital.
I was talking to a friend about how our current products almost didn’t see the light of day.
Recently, I had experienced this first hand a couple of times.
The power of Belief Capital.
I was talking to a friend about how our current products almost didn’t see the light of day.
15/ It made us wonder how many thousands (if not millions) of ideas died because the founder was discouraged early.
The friend I’m referring to is Dru who you may know from Twitter as @drurly. Dru is a prolific researcher, writer and maker.
The friend I’m referring to is Dru who you may know from Twitter as @drurly. Dru is a prolific researcher, writer and maker.
16/ His latest idea is http://Trends.vc where he helps you discover new markets and ideas weekly by distilling 30 hour of research into 5-minute reports. Today, he enjoys loyal (and loud) support on Twitter for Trends and even started making money on his reports.
17/ It may seem obvious that Trends was meant to be a blockbuster project but not so much on Day 1.
What many people may not know is how Trends almost never happened. What made Dru get over the hurdle and ship Trends?
Similar story.
What many people may not know is how Trends almost never happened. What made Dru get over the hurdle and ship Trends?
Similar story.
18/ He shared his first inkling of an idea for Trends with the Zero To One Makers Club where several people (including me) supported it.
19/ But Dru shared with me later that his conviction grew 10x when he heard @edmundamoye literally scream from his Zoom window how much he loved the idea. It’s crazy that little moments like that are what can make or break an idea.
20/ However, the reaction he received from another group of people was very disappointing when he shared the idea just a few weeks before. They were skeptical. Luckily, it didn’t deter him because he later found believers. What if he didn’t?
21/ Here’s Dru’s tweet announcing the launch of http://Trends.vc in Feb 10:
https://twitter.com/DruRly/status/1226935927064453121
In a world of infinite abundance, the real barrier to taking action on your idea is not money. It is a lack of a Belief Capital.
https://twitter.com/DruRly/status/1226935927064453121
In a world of infinite abundance, the real barrier to taking action on your idea is not money. It is a lack of a Belief Capital.
22/ Belief capital is what you need to go from an idea to launch. From thin air to Day 1 of your product. While many people have friends (online or offline), you have to be careful in who you share your initial idea with.
23/ Because a sh*t ton of people don’t know a thing about how incredibly fragile novel ideas are and will simply talk you out of your best ideas. This can be because of their sheer ignorance or internal insecurity that you might succeed.
24/ Or to put it less harshly, the idea may not simply resonate with them for inexplicable reasons. That’s all!
On the other hand, the Belief Capitalists are those people who actually talk you into your launching your idea.
Self-doubt is the biggest killer of dreams.
On the other hand, the Belief Capitalists are those people who actually talk you into your launching your idea.
Self-doubt is the biggest killer of dreams.
25/ Belief capital acts like a protective shield against self-doubt and is probably the most under-valued capital out there.
Today, Dru has built http://Trends.vc into an incredibly successful newsletter and has an unstoppable momentum: https://twitter.com/DruRly/status/1323331627871834112?s=20
Today, Dru has built http://Trends.vc into an incredibly successful newsletter and has an unstoppable momentum: https://twitter.com/DruRly/status/1323331627871834112?s=20
26/ If you’ve enjoyed this thread so far and want more of my future articles/posts, subscribe here: https://keepupwithkp.substack.com/p/the-underrated-types-of-capital-that
