Matt Ocko: The Art of Funding Deep Technology

TL;DR

Deep tech investor, Matt, shares insights on the challenges and advantages of investing in hard tech companies. He emphasizes the importance of using computational power and data to innovate and solve complex problems. He also highlights the need for an ethical framework that guides investment decisions.

Transcript

matakohe has a deeply technical background he started programming when he was a kid I think how old were you when he started programming seven seven years old and then started his first company at fifteen since then he's done a number of angel investments and companies like Zynga he also invested in Facebook around the series see companies like tan... Read More

Key Insights

• 💝 Deep tech investing requires a balance between being too early or too late in the adoption curve. Timing is crucial, and being too late often leads to being crushed by the competition.
• 🧑‍💻 Innovation in hard tech is facilitated by the convergence of Moore's Law, software advancements, material science, and robotics. This makes computation and data-driven solutions more accessible and cost-effective.
• 🖐️ Equity partners can play a significant role in both sourcing and due diligence, providing diverse perspectives and expertise to make informed investment decisions.

Questions & Answers

Q: How does Data Collective source companies with deep tech qualities?

Data Collective relies on a network of equity partners, which includes world-class experts in various fields, to source and assess companies. They have access to a wide range of industry connections and expertise, helping identify promising startups.

Q: How does Data Collective manage the risk of investing in hard tech companies?

Data Collective focuses on companies that leverage computation and data to solve complex problems. By using simulation, algorithms, and analytics, these companies can sidestep the need for massive amounts of capital expenditure and lengthy development timelines. This approach allows Data Collective to invest at the early stages and double down on successful companies.

Q: How does Data Collective decide which companies to invest in?

Data Collective looks for companies that have a computational and data advantage, as well as a strong market potential. They also prioritize companies that address significant challenges in fields like biotech, robotics, and enterprise software. The expertise and insights of their equity partners play a crucial role in the investment decision-making process.

Q: Is there an ethical framework that guides Data Collective's investment decisions?

Data Collective has a non-exploitative approach to capitalism and avoids investing in companies that contribute to environmental harm, exploit vulnerable communities, or foster addiction. They prioritize investments that aim to make the world a better place, such as companies that promote sustainability or improve healthcare.

Summary & Key Takeaways

• Matt has a technical background and started programming at the age of seven. He has been running his own firm, Data Collective, since the early 90s and focuses on investing in "must-have" life-or-death technologies for large enterprises.

• Data Collective leverages data experts from various companies to help with sourcing, deal flow, and due diligence. Matt believes in investing in deep tech companies that use computational power and data to solve difficult problems.

• He believes that hard tech investing requires a balance between being too early and too late in the adoption curve. He emphasizes the need for humility, open-mindedness, and the ability to recognize opportunities that challenge existing beliefs.