Mistletoe, owned by billionaire investor Taizo Son, has led a $3.5 million investment in Singapore-based data-driven venture investment platform Hatcher+.
“The funds will be used to expand the company’s research and development efforts, and further develop the company’s global co-investment network,” said Hatcher+ in a statement on Tuesday. The venture investment platform said that Son’s investment had come ahead of its plans to raise a $125 million second fund.
Taizo Son, brother of SoftBank founder Masayoshi Son, had earlier this year pledged to invest at least $100 million in early-stage ventures in Southeast Asia.
Mistletoe operates both as a venture capital firm as well as an accelerator and an incubator. It had last year made a similar commitment to Japanese startup incubator ABBALab, which is focused on the Internet of Things (IoT).
Last month, Son had launched an agri-food tech accelerator in India, christened Gastrotope, in partnership with Gurgaon-based GSF Accelerator and Indo-Japan business consultancy firm Infobridge.
Hatcher had earlier raised over $20 million for its first vehicle, which it operated as an investment holding company, and had committed capital to about 13 startups. For its second fund, it aims to invest in about 1,000 startups and partner with accelerators and incubators globally.
The planned Hatcher+ H2 $125-million investment fund will be used to make a series of AI and machine-learning-assisted co-investments into early-stage companies. “This investment caps two years of intensive research and development, and is a strong endorsement of our data-driven strategy. We now have the technology, the data, the backing, and the partners we need to execute,” John Sharp, co-founder and partner at Hatcher+ said in a statement.
Hatcher+ said it would use proprietary research gained from its analysis of over 300,000 early-stage investment events across 745 leading venture firms and accelerator groups, in conjunction with dynamic data obtained from its partnerships with leading accelerators, to enable high-potential venture investments to be identified at an earlier stage.
Hatcher+ partner and former Bankrate SVP/CTO Dan Hoogterp believes the firm’s data-driven model will simultaneously reduce the risks associated with venture investments and level the playing field for new investors coming into the startup ecosystem.
“Within ten years, venture investing will come to resemble the stock market – data will be available on every deal, regardless of sector, stage, or geography, and liquidity will be measured in minutes, not years”, he added. “Going forward, we believe that successful investors will begin to place greater reliance on the use of data in conjunction with emerging technologies, such as AI and machine learning.”