Lecture with Tom Waterhouse, Chief Investment Officer of Waterhouse VC

Introduction

• Episode of The Huddle featuring Tom Waterhouse, Chief Investment Officer, Waterhouse VC.
• Tom's background and career in bookmaking and investment.

Family Background

• Great-grandfather, grandfather, and dad were bookmakers.
• Mother is Australia's leading group one winning trainer.
• Initially did not like racing but fell in love with it during university.
• Worked Saturdays for his dad at races; started as a bookie for dog races.
• Formed a partnership with his grandfather, learning valuable lessons.

Early Career

• Important grounding working at dog races and provincial races.
• Influence of a strict upbringing and hard work from his mother.
• Tough beginnings but learned the value of discipline and hard work.

Becoming a Top Bookmaker

• Grandfather was a huge influence; transformed into the biggest on-course bookie in Australia by 2008.
• Key successes and challenges: betting big, the impact of advertising law changes, and move to online.
• Creation and rapid growth of tomwaterhouse.com.

Transition to William Hill

• Sale to William Hill; became CEO of the Australian business.
• Transitioned from startup to running a 500-person multi-brand operation.
• Valuable learning experiences: differences between startup environment and large corporate management.

Post-William Hill Journey

• Faced with a non-compete; focus shifted to analyzing tech suppliers in the gambling industry.
• Launched investment efforts in August 2019 focusing on high-potential tech suppliers.
• Key successes in data supply, platform building, and sports betting syndicates.

Investment Philosophy and Approach

• Looks for businesses fulfilling operator needs with high growth potential.
• Leverage of insider knowledge to predict success and integration with operators.
• Passive investment approach requires patience; identifying talents in the industry.

Comparisons with Industry Peers

• Similarities in career trajectories with other industry veterans like Matt Davy.
• Importance of surrounding oneself with talented individuals and understanding multiple parts of the industry.

Reflections and Future

• Most rewarding and challenging aspects of his career: seeing businesses grow, navigating operational challenges, and learning from failures.
• Future plans: focus on tech suppliers to the gambling industry, leveraging industry knowledge and team expertise.
• Love for the industry and long-term commitment to investing in high-potential businesses.

Summary and Closing Remarks

• Emphasis on the importance of focus, hard work, and continuous learning.
• Industry growth prospects and personal passion for betting and gambling.
• Tom's overall optimistic outlook and dedication to his current investment roles.