In late 2022, the debut of ChatGPT sparked a revolution in the world of generative AI tools. With its swift and efficient research-gathering capabilities, the finance industry was one of the first to recognize the potential of these advanced tools. Speed is essential when advising investors who need to quickly respond to market changes, and the financial sector saw the potential for generative AI to help streamline the data-gathering and analysis process.
A startup called Linq is now entering this space with its own AI agent that has the ability to automate various tasks for financial research and analysis. Recently, Linq raised an impressive $6.6 million in a funding round led by InterVest and Atinum, with participation from TechStars, Kakao Ventures, Smilegate Investment, and Yellowdog.
MIT alumni Jacob Chanyeol Choi and Subeen Pang founded Linq after winning Samsung’s Open Collaboration in 2023, an accelerator-like program hosted by Samsung Financial Network. Choi told TechCrunch that this win inspired him to develop large language models (LLMs) specifically for enterprises, particularly in the financial sector.
“We recognized the potential for a tool that could seamlessly integrate with a company’s data ecosystem, which led to the creation of Linq,” Choi explained. “Our approach involves converting data into vectors and utilizing techniques like vector search and retrieval-augmented generation (RAG) to provide generative AI services.”
– Jacob Chanyeol Choi, Co-founder of Linq
The Boston-based startup boasts that its AI agent utilizes domain-specific search capabilities, with finance as its main focus. This advanced agent automates a wide range of tasks, including scheduling, communication, and scanning research reports, as well as building complex financial models. It can also generate summaries of securities filings, earnings reports, call transcripts, and other company-specific information.
“Hedge fund analysts and institutional investors, who often need to cover hundreds of equities, will see a significant increase in productivity,” Choi said. He also stated that general AI tools like ChatGPT are unable to fill the gap in this area.
In addition to its B2B services for enterprise clients, Linq plans to develop B2C tools for AI-powered equity research. Choi envisions these tools to be able to synthesize large amounts of data and assist portfolio managers in making informed investment decisions.
Linq will face competition from established incumbents in the equity research space, as well as other startups such as Fintool, Finchat, and Finpilot, which also offer AI-powered platforms for financial researchers and institutional investors.
However, Choi believes that Linq has a distinct advantage. He believes that what sets his company apart is the end-to-end service it offers, managing workflow and streamlining processes. Additionally, Linq’s proprietary data-gathering system provides investors with access to a wide range of structured and unstructured data from around the world. This includes live transcriptions of earnings calls in languages other than English, extending beyond the United States.
Besides its cutting-edge technology, the startup also boasts a team of experts, including founding members Jin Kim, who previously worked in quantitative finance, and Hojun Choi, a former Goldman Sachs banker who also has experience in a private equity firm.
Linq already has an impressive roster of clients, including Samsung Financial Network, with whom they are working to automate their underwriting processes. They also have more than 20 enterprise customers, including Samsung affiliates, KPMG US, and hedge funds in Asia and the U.S.
The two-year-old startup, with offices in both Boston and Seoul, South Korea, plans to use its new funding to further develop their product, hire new staff, and expand their reach into the Americas, Asia, and the Middle East. With 12 staff members and generating revenue since October of last year, Linq is quickly establishing itself as a leader in the world of generative AI for the finance industry.
