Leveraging AI to Predict Venture Success: John Sharp's Journey with Hatcher+

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 Question02:10 John's First Investment: Education and Orchestration05:00 Technological Disruption in the Music Industry06:14 Management Lessons from Conducting Orchestras10:47 Lessons from Past Industry Disruption15:03 Introduction to Hatcher+ and AI Venture Model17:51 Hatcher+'s Methodology & Portfolio Strategy24:01 The Power Law in Venture Capital33:33 Building Hatcher+'s AI-Driven Platform37:12 Insights from Analysing 600,000 Companies42:40 Importance of Pivots and Board Support44:31 John's Biggest Courage MomentResourcesBooks:• Orchestration by Walter Piston• The Professional Arranger Composer by Russell Garcia• Orchestration books by Nelson Riddle• Jazz Orchestration by Dick GroveNotable 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 SharpSponsors:First Cheque is supported by our wonderful sponsors:Deel: Founders scale faster on Deel. Set up payroll for any country in minutes, hire anyone anywhere, and get visas handled fast, so you stay focused on scaling. Deel takes care of onboarding, HR, IT, EOR, benefits, and compliance, so your team can grow without borders.It’s why more than 40,000 fast-growing companies trust Deel to move fast.Visit https://www.deel.com/dayone___Pear Tree: Pear Tree helps Australian and New Zealand founders build high-performing offshore teams without the agency middleman.As local hiring becomes more expensive and harder to fill, many operators are turning to offshore talent across engineering, development, marketing, accounting and operations at a fraction of local salary costs.The offshore horror stories you hear usually aren’t a talent problem. They’re the result of outsourcing agencies that overcharge clients while underpaying staff. Pear Tree takes a different approach through a direct, transparent model where your team is paid fairly, fully compliant, and focused entirely on your business.As part of the Day One community, you’ll receive a free team audit to identify where offshore talent could move the needle in your business, plus 20% off your first hire. Learn more at http://dayone.fm/peartree First Cheque is part of Day One.Day One helps founders and startup operators make better business decisions more often. To learn more, join our newsletter to be notified of new First Cheque episodes and upcoming shows. Mentioned in this episode:Deel x PX_Script 1This podcast uses the following third-party services for analysis: Podtrac - https://analytics.podtrac.com/privacy-policy-gdrpSpotify Ad Analytics - https://www.spotify.com/us/legal/ad-analytics-privacy-policy/