Episode Summary:

In this episode of First Cheque, hosts Cheryl and Maxine engage in a compelling conversation with John Sharp, co-founder of Hatcher+, an innovative AI-driven venture capital platform based in Singapore. John recounts his fascinating transition from conducting orchestras to pioneering data-driven venture investing, highlighting how his early experiences with technological disruption in the music industry inspired him to embrace AI and big data. He delves into how Hatcher+ analyses over 600,000 startup deals to predict investment success, emphasising the importance of the power law and large, diversified portfolios in maximising venture returns. John also shares his insights on the future of algorithmic investing in venture capital, drawing parallels to the transformation of public equities in the 1990s. Throughout the discussion, he underscores the necessity of adapting to technological advancements and offers valuable lessons for founders, operators, and investors aiming to leverage AI for smarter investment strategies.

Key Takeaways:

01:39 Welcome & First Investment Question

02:10 John's First Investment: Education and Orchestration

05:00 Technological Disruption in the Music Industry

06:14 Management Lessons from Conducting Orchestras

10:47 Lessons from Past Industry Disruption

15:03 Introduction to Hatcher+ and AI Venture Model

17:51 Hatcher+'s Methodology & Portfolio Strategy

24:01 The Power Law in Venture Capital

33:33 Building Hatcher+'s AI-Driven Platform

37:12 Insights from Analysing 600,000 Companies

42:40 Importance of Pivots and Board Support

44:31 John's Biggest Courage Moment

Resources

Books:

• Orchestration by Walter Piston

• The Professional Arranger Composer by Russell Garcia

• Orchestration books by Nelson Riddle

• Jazz Orchestration by Dick Grove

Notable Quotes

"If you don't understand AI, figure it out as quickly as you can. Because if you embrace the AI options that are available, you'll become expert at them." – John Sharp

"To succeed in venture, you've got to truly play the odds in a very intelligent way." – John Sharp

"You have to worship at the altar of the power law. It dictates everything that you do." – Maxine

"Sometimes you just got to put yourself out there and follow your gut that you know how to do this." – John Sharp

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Mentioned in this episode:

November 2024 - Galah Cyber

November 2024 - Galah Cyber

June 2024 – Vanta First Cheque

November 2024 - Rocking Horse

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