Hatcher+
Funded

Hatcher+ is a data-driven venture firm that uses AI to identify early-stage opportunities

DEAL TYPE Disclosed
DEAL STATUS Funded
DEAL STAGE Growth capital
DEAL STRUCTURE Funds
MINIMUM INVESTMENT USD 50,000
FUNDRAISING GOAL USD 125,000,000
HEADQUARTERS Singapore

Investment highlights

Capitalising on a growing market

Global venture capital investment in start-ups reached a decade high in 2017, totalling at USD140bn; in 3Q2018, more than USD53bn have been invested into c.3,400 companies globally.

Extensive, globally deal sourcing network

Early access to pre-VC investments through partnerships with leading accelerators and early-stage investment groups across the globe – Australia / NZ, Europe, India, North America, the Middle East, Turkey, and South East Asia – such as BlueChilli, Innova, Plug and Play, Quake Capital and Sente Link; 15 co-investment partners signed to date, with 11 additional co-investment partners in the pipeline.

Unique data-driven investment strategy

Uses artificial intelligence (“AI”) / machine learning (“ML”) based technologies to help identify early-stage investment opportunities; extensive portfolio simulations have resulted in analysis of more than 450,000 venture investment outcomes, and indicate that a portfolio of c.2,100 investments should generate a net multiple of 4.0x in ten years. Downside analysis yields a multiple greater than 2.0x with over 90% confidence.

Strong track record

Hatcher+ H1, a 2013 vintage investment vehicle, has achieved a Distributions Versus Paid-In-Capital (“DVPI”) ratio of 0.4x as at 17 Dec 2018, placing it in the top 15% venture funds of the 2013 vintage year (PitchBook); exited from 4 companies within a short span of four years since initial investment.

Capable management team

Highly-experienced team of leading AI and data science technologists, start-up investment specialists, supported by MAS-licensed asset managers.

Use of proceeds

Funds will be used to invest in over 2,100 investment rounds from accelerator round through to series A, comprising c.1,300 accelerator round investments, and c.700 follow-on investments.

Background

Overview
Hatcher+ is a Singapore and US-based early-stage venture fund, which uses proprietary artificial intelligence (“AI”) and machine learning (“ML”) based technologies to identify quality investment opportunities. The second fund, Hatcher+ H2 Fund of USD125m, is set to offer investors an opportunity to invest in high-quality, proven start-ups worldwide through its: (1) globally-diversified deal-sourcing network; and (2) data-driven strategy to generate strong, resilient and consistent returns.

Hatcher+
Established in 2016 as a portfolio company within the Hatcher Pte Ltd portfolio, Hatcher+ is supported by an experience team led by Dan Hoogterp, John Sharp and Wissam Otaky – start-up investment specialists, each boasting extensive experience in the fields of AI / data science, supported by ex-JP Morgan Asset Management executives and MAS licensed fund managers Stephen Fisher and Tony Morgan, both of whom have decades of experience in asset management, risk management, and compliance, and a team of professional advisors with extensive experience in managing client investments across multiple asset classes.

In 2013, Hatcher Pte Ltd ("H1"), was established, with a total of USD18m invested into 13 companies, which include:
  • ASYX
  • Dropsuite Pte Ltd
  • Global Invit AB
  • Hatcher+
  • Inzen Studio Pte Ltd
  • SocialCops Pte Ltd
  • Telr Pte Ltd
  • ThoughtRiver Pte Lte
As at 17 Dec 2018, according to PitchBook, H1 has achieved a Distributions Versus Paid-In-Capital (“DVPI”) ratio of 0.4x; placing it in the top 15% of venture funds of 2013 vintage year. To date, the fund has achieved 4 exits within four years of initial investment into the companies, including 2 public listings, 1 trade sale and 1 partial exit to co-investor, namely:
  • Dropsuite (listed on ASX: DSE)
  • Inzen Studio (listed on ASX: ICI)
  • ASYX (trade sale)
  • ThoughtRiver (partial exit)
Hatcher+ H2 Fund
H2 Fund is seeking to raise USD125m, and is focusing on investing in early-stage ventures using the power of global co-investment partnerships, business process automation and artificial intelligence to build a large, globally-diversified portfolio of investments, targeting strong, resilient and consistent returns.

In 3Q2018, H2 Fund completed a first close with investors such as family offices, fund of funds and corporates, and has since completed 53 investments worldwide. Hatcher+ was recently ranked the second-most active early stage investor worldwide, according to PitchBook Q3 Global Update.

Leveraging the success of H1, Hatcher+ H2 Fund uses both a: (1) globally-diversified deal-sourcing network; and (2) data-driven, automated approach, for a diversified portfolio; providing significant downside protection to LPs:
  • Globally-diversified deal-sourcing network
    • Network of 15 co-investment partners capable of generating c.350 investment opportunities per annum; with 11 additional co-investment partners in the pipeline
      • Hatcher+ provides partners with the Hatcher+’s Business Process Automation ("BPA") Platform which grants co-investment partners (and H2 LPs) access to AI-based deal screening capabilities, comprehensive performance monitoring, CRM, fund management, and data and deal-sharing capabilities
        • Investment partners have access to proprietary AI-based application processing tools, including application quality analysis, and business opportunity scoring, that is used to intelligently filter through deal flow; enabling staff to focus on a smaller, richer pool of prospects
  • Data-driven approach
    • Conducted extensive research and analysis on more than 450,000 venture investment outcomes with results showing that:
      • Investing at the earliest stages will generate consistently higher multiple on invested capital; and
      • Large portfolios generate stronger, more resilient, and higher consistency returns compared to smaller portfolios
    • Leading to an investment strategy which include:
      • Investing into c.1,300 early-stage companies from accelerator round through to series A, with a total of c.2,100 investments
      • Typical investment size ranges from USD50k to USD75k for accelerator rounds, and USD20k to USD150k for follow-on rounds
      • Significant capacity for global and local deal flow and informed co-investment by investors in the H2 Fund

Traction

Hatcher+ H1 is a USD18m 2013 vintage investment vehicle with 13 portfolio companies; achieved 4 exits within four years of initial investment; DVPI ratio of 0.4x as at 17 Dec 2018, placing it in the top 15% of venture funds of 2013 vintage year.

In 3Q2018, H2 Fund completed its first close with investors such as family offices, fund of funds and corporates, and has since completed 53 investments worldwide. Hatcher+ was recently ranked the second-most active early stage investor worldwide (PitchBook Q3 Global Update).

Management team

Dan Hoogterp
Partner, Research & Development / Investment Strategy

- Ex-Bankrate SVP / CTO
- Former Managing Director of Pratt Ventures, LLC
- Former Senior Vice President & CTO of Bankrate
- Former Managing Partner & CEO of TQuist, LLC

Wissam Otaky
Partner, Co-Investment & Finance / Capital Allocation

- Co-founder & Advisor of Otaky Holding Group
- Former CFO of MarkaVIP
- Co-founder of MENA Cleantech VC

John Sharp
Partner, Strategy & Technology / Capital Sourcing

- Founder and Managing Partner of Hatcher H1
- Former Chairman & CEO of Content and Systems
- Former Director of Telr