In the swiftly evolving realm of artificial intelligence (AI), the finance industry stands out as an early adopter, Linq, keen on harnessing the power of generative AI tools for enhanced efficiency in data-gathering and research processes. The urgency in the finance sector is propelled by the need for quick, accurate advisories for investors reacting to the ever-fluctuating market scenarios.
The genesis of this transformation can be traced back to late 2022 with the launch of ChatGPT, which highlighted the potential of generative AI. This was a pivotal moment, notably recognized by financial industry stalwarts who saw immediate applications for speeding up their operations. However, the scope of generative AI in finance has significantly widened since, as evidenced by the emergence of startups like Linq, which specialize in custom AI solutions for financial analysis.
Founded by MIT alumni Jacob Chanyeol Choi and Subeen Pang, Linq originated from a victory at the Samsung Open Collaboration in 2023. This event, an accelerator program by Samsung Financial Network, sparked the idea in Choi and Pang to develop large language models (LLMs) tailored for the financial industry’s unique needs.
“We realized early on the critical importance of integrating seamlessly with a company’s existing data ecosystem,” Choi commented in an interview with TechCrunch. “Our approach involves converting data into vectors and using advanced techniques like vector search and retrieval-augmented generation (RAG) to provide specialized AI services.”
Linq, headquartered in Boston, has devised an AI agent capable of handling a multitude of tasks crucial for financial analysis. These range from mundane administrative duties like scheduling and communication to more complex functions such as scanning research reports and building financial models. Below are some of the key features of Linq’s AI agent:
- Domain-specific search: Tailored for financial data handling.
- Large language models: Automates complex data analysis tasks.
- Summarization capabilities: Condenses information from securities filings, earnings reports, call transcripts, and other vital company data.
Hedge fund analysts and institutional investors, who typically manage extensive portfolios, are poised to gain significantly from Linq’s capabilities, starting with automated summaries of earnings call transcripts—a task beyond the reach of general AI tools like ChatGPT.
Linq’s venture into the AI-driven financial analysis space puts it in direct competition with established entities and other AI-centric startups. A comparative glance at the competition reveals:
| Competitor | Service Offered |
|---|---|
| Bloomberg | AI tool for summarizing earnings calls |
| S&P | Document viewer with AI for surfacing relevant information |
| Fintool | AI-powered platform for financial research |
| Finchat | AI-driven financial analysis tools |
| Finpilot | Comprehensive AI platform for financial research |
Despite the crowded field, Choi believes Linq has distinct advantages. “What sets us apart is our end-to-end service that not only manages workflows but also streamlines processes extensively,” he explains. Linq’s proprietary data-gathering system offers investors access to a wide array of structured and unstructured data worldwide, including live transcriptions of earnings calls in multiple languages.
The expertise behind Linq also includes two other founding members: Jin Kim, with a background in quantitative finance, and Hojun Choi, a former banker at Goldman Sachs with private equity experience. This diverse team brings a rich blend of knowledge crucial for navigating the complex financial landscape.
Currently, Linq is collaborating with Samsung Financial Network to automate their underwriting processes and boasts a roster of over 20 enterprise clients including Samsung’s affiliates and KPMG US. The startup, which also operates out of Seoul, South Korea, has ambitious expansion plans. With the recent injection of $6.6 million in funding from a round led by InterVest and Atinum, and supported by TechStars, Kakao Ventures, Smilegate Investment, and Yellowdog, Linq is poised for rapid growth.
The funds are earmarked for product development, hiring new staff, and geographic expansion across the Americas, Asia, and the Middle East. Despite being just two years old and having a modest staff of 12, Linq has started generating revenue as of last October, signaling a promising future in the high-stakes world of financial services.
As Linq continues to develop and deploy its innovative AI solutions, it not only challenges existing paradigms within the financial sector but also sets new standards for the integration of technology in financial analysis. The industry watches keenly as startups like Linq pave the way for a more efficient, AI-driven approach in financial advisory and analysis services.
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Featured Image courtesy of DALL-E by ChatGPT