Navigating the Hype Cycles and Early-Stage Deep Tech Investing with Emily
First Cheque
Navigating Early-Stage Deep Tech Investing and AI Evolution
This chapter examines the complexities of early-stage deep tech investing, with a focus on artificial intelligence and the influence of hype cycles. It features insights from a guest's journey through the evolution of AI technologies and the strategic approaches of seasoned operator angels in the investment landscape.
Episode Summary:
Join Emily Rich and hosts Maxine and Cheryl in this episode where they explore the dynamic world of early-stage and deep tech investing. Emily shares her unconventional journey from being a high school dropout to making a decisive investment in her own education, a move that transformed her path and led her to become a significant player in the venture capital scene. The conversation delves into the thrills of pre-seed and seed investing, the art of identifying and navigating hype cycles in technology—including discussions on the metaverse and blockchain—and the profound impact of backing founders in their earliest stages. Emily also reflects on her transition from founder to angel investor, highlighting the importance of supporting ambitious ideas and the courage it takes to step into the unknown. Packed with personal anecdotes, industry insights, and plenty of laughs, this episode offers both inspiration and practical advice for anyone interested in the highs and lows of venture capital.
Key Takeaways:
00:00 Introduction and Emily's first investment in her own education
04:29 Discussing being bad at being told what to do; founders as bad employees
06:12 Emily on why she invests in pre-seed and seed stages
13:14 Navigating hype cycles; the Metaverse example
18:14 Thoughts on blockchain and crypto as hype cycles
22:26 Understanding and identifying hype cycles in investing
29:28 Changes in AI over the past decade; Emily's background in AI
32:31 Public perception of AI and fear of job loss
37:39 Tips for non-technical investors to understand AI
40:40 Emily's Big Kahuna moment—leaving a safe job to start angel investing
44:44 Closing remarks and thank you
Notable Quotes
"You know it's gone mainstream when my mum is using it for knitting tips." - Cheryl
"The Metaverse is my favourite hype cycle because it was so overhyped and no one is spending time in the Metaverse." -Emily Rich
"There is some suggestion and quite a lot of research that founders are really bad employees—great founders are really bad employees." - Maxine
"If you're hyping someone from the sidelines, it's like cheering on an athlete—they're probably going to run faster." -Cheryl
"I started investing in myself, in my education—not from a university perspective, but from schooling in general." - Emily Rich
Resources
Thought Leaders to Follow:
- Fei-Fei Li – Renowned for her work in AI and computer vision.
- Timnit Gebru – Noted for her contributions to AI ethics.
Reports and Articles:
- Sequoia Capital's Articles on AI: Maxine mentions that Sequoia published insightful pieces examining whether AI infrastructure can generate significant revenue, specifically questioning the potential for $600 billion in revenue.
- Bain & Company's Report on the Jagged Edge of Technology: Referenced by Maxine, this report discusses the adoption of AI, its impact on productivity, and how businesses are integrating AI into operations.
Books and Quotes:
- Charlie Munger's Investment Advice: Maxine recalls his quote, "If your shoeshiner starts giving you stock tips, sell," as a metaphor for identifying when a market might be overheated.
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