CapXcentric founder Warwick Donaldson on slowing down, staying small and when to avoid VC funding

In April 2024, I started my eighth business, CapXcentric, a pre-seed to Series A capital raising coaching business.

And I made a deliberate decision: I’m not scaling it. 

I know, it sounds ironic. CapXcentric exists to guide founders through the capital raise process, often for high-growth, hyper-scale startups. But despite working in a space that’s all about going big, I’ve chosen to build a business that focuses on quality over quantity. 

Why this path

After years of moving millions—and sometimes billions—of dollars around, building  scalable systems, and crafting complex financial models, something shifted. I wanted  more purpose and less noise. 

I grew up 10km from Mortlake, a small town of just 1,500 people, where life was simple and community mattered. Over the years, I’ve felt myself being drawn back to those  principles. 

But let’s be real—it’s not like I woke up one morning with all the answers. I still have moments where I second-guess my choices. When someone drives past in a flashy new car or I hear about a massive salary, I feel a pang of envy.

But I remind myself that real success, for me, isn’t external – it’s about creating something meaningful that aligns with my values. 

I know what rapid scale looks like. And I choose not to seek it in my business.

Not every business should seeking VC funds

When founders approach me, I assume from the outset that they’re not a fit for VC funding. 

Why? Because I’ve seen too many great businesses get shoehorned into the VC model when it wasn’t right for them. They’re pushed into chasing hyper-growth when their product, market, or long-term vision doesn’t align with that path.

The result? Burnout, loss of mission, and businesses collapsing under the weight of expectations they were never meant to carry. 

But here’s the truth: healthy, balanced founders don’t just build better companies – they’re more investible.

When founders take the time to focus on their well-being and thoughtfully align their growth strategies with their values, they create companies that investors trust and want to back for the long haul.

So if a founder is determined to raise VC capital, I’m all-in. But I start by looking for  evidence to build a strong case rather than assuming it’s the only path forward. My role is to help founders figure out the right way to grow their company, whether that’s through VC funding, partnerships, organic growth, or something else entirely. 

What I learned about balance in high-growth environments 

Let me be clear: I’m not anti-growth.

I love working with ambitious startups tackling big, complex problems in industries like MedTech, CleanTech, and software. I thrive in the chaos of pre-seed to Series A fundraising – it’s fast-moving, high-stakes, and deeply rewarding. 

But here’s what I know: balanced founders make better decisions.

They lead more effective teams. They create cultures where people actually want to work.

In short, healthy leadership isn’t just a nice-to-have—it’s a competitive advantage. 

How I learned to slow down 

Two years ago, I was diagnosed with ADHD. Last year, I got a hearing aid after a rare condition left me with hearing loss at the age of seven. And for the past four years, I’ve lived with chronic sciatica. 

These experiences forced me to rethink how I approach work and life.

Now, I start my mornings with long walks—without my phone. I spend time gardening. I’ve learned how to be present in the small moments of life.

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

Running CapXcentric is also a huge part of my purpose. I love what I do. I love helping founders secure the funding they need to build the future.

I love creating exponentially more value for them than I charge. But I’m still early in my mental health journey, and I’m okay with that. 

I don’t know if this exact path will last forever. And honestly, I hope it doesn’t. I want to  keep growing and evolving. This is just one chapter in a much bigger story. 

Stop waiting for someone else 

For years, I wished the finance industry was more ethical, less greedy. But a mentor  once told me: 

“Stop waiting for others to be the leader you want them to be. Go out and be that leader  yourself.” 

That advice changed everything. I can’t control the people who are willing to trash the  planet or exploit others to make more money than they’ll ever need. But I can control  how I run my business, who I work with, and how I show up every day.

Scaling isn’t always the answer 

The startup world often equates success with “bigger is better.” But we’ve all seen what happens when things scale without enough thought. 

Too many businesses lose their purpose when they grow too fast. The mission gets blurry, the teams burn out, and that original spark fades away. 

There’s a sweet spot: staying small enough to care, nimble enough to adapt, and  focused enough to stay true to your values. 

Building Thoughtfully: What I’ve baked into my business 

Beyond just my business growth ambitions, I also want to hold myself accountable to  creating the world I want to live in—not just talk about building thoughtfully, but actually  do it. Here are a few pledges I’ve ensured are baked into the DNA of CapXcentric (all  publicly available on our website): 

1. A Code of Conduct and Ethics – Transparency and integrity aren’t negotiable. 
2. Donating a Minimum of 25% of Profits – Giving back isn’t an afterthought—it’s part of who we are. 
3. Engaging Neurodivergent and Underrepresented Talent – We actively work with people and communities who are often overlooked. 
4. Working Only with Startups That Do No Harm – If a business causes harm, I’m not interested. 
5. Sustainability Pledge – We’re committed to offsetting 100% of our carbon emissions and reducing our environmental footprint. 
6. Annual Impact Report for Transparency – We publish an annual report outlining our impact, donations, and carbon offset contributions. 

These pledges help us stay aligned with our belief that businesses should create value  without causing harm. 

Experiences that shaped my perspective

There are a few key moments in my life that changed how I see the world:

• Living in China’s Mega-Cities: I spent three years in Nanjing, surrounded by smog that was a constant reminder of the environmental cost of cheap, disposable goods. I’ve hated “disposable” merchandise ever since. 
• Seeing Homelessness Up Close: I’ve watched family and friends lose everything because of bad luck, mental health struggles, and job instability. It made me question why our systems fail the people who need support the most.
• Facing Addiction and Trauma: During COVID, I quit alcohol, cigarettes, and  drugs. I was also diagnosed with PTSD – something I didn’t fully understand until recently. Confronting my fear of rejection and my people-pleasing tendencies has been one of the hardest and most rewarding things I’ve ever done. 

Building Thoughtfully – my advice 

If I could give founders one piece of advice, it’s this: build thoughtfully.

Understand the difference between what’s expected and what’s right for you. 

• Prioritise Your Well-Being: You’ll make better decisions when you’re looking  after your mental and physical health. 
• Know Your “Why”: If you’re clear about your purpose, you’re less likely to get  sidetracked. 
• Question Conventional Wisdom: Just because something’s standard doesn’t  mean it’s right for you. 
• Be Authentic and Vulnerable: Your authenticity will build stronger  relationships—with your team, your customers, and your investors. 

Acknowledging privilege and staying true to what matters 

I know that privilege has played a role in my journey. I’ve had opportunities that others may not have had. That makes it even more important for me to use my platform thoughtfully and advocate for a better way to do business. 

Scaling might be the dominant narrative, but it’s not the only way to build. 

Your legacy won’t be defined by how fast you grew or how much revenue you made. It’ll  be defined by the impact you created, the people you empowered, and the example you  set for others. 

For me, that’s the story I want to tell.

• Warwick Donaldson is the author of the Aussie Startup Capital Nerd and specialises in providing hands-on capital raising support services for Aussie startups CapXcentric.