When generative AI tools started to gain traction following the launch of ChatGPT in late 2022, the finance industry was one of the first to recognize the potential of these tools to speed up the process of data collection and research — after all, speed is crucial when advising investors who need to respond quickly to market changes.
Now, a startup called Linq has entered the space with an AI agent that can automate a variety of tasks required for financial analysis and research, and has raised $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 Open Collaboration 2023, an accelerator-like program hosted by Samsung Financial Network. Choi told TechCrunch that winning inspired them to build large-scale language models (LLMs) for companies, particularly the financial sector.
“We saw the potential for a tool that could seamlessly integrate with an enterprise's data ecosystem, which is how Linq was born,” Choi said. “Our approach to data embedding and retrieval involves converting data into vectors and providing generative AI services using techniques such as vector search and retrieval augmented generative (RAG).”
Boston-based Linq says its AI agents use domain-specific (in this case, finance) search and large-scale language models to automate everything from scheduling and communications to scanning research reports and building financial models. They can also summarize securities filings, earnings reports, conference call recordings and other company-specific information.
“Hedge fund analyst [and institutional investors]”AI teams that need to cover hundreds of stocks, starting with summarizing earnings call transcripts, will experience the most notable productivity gains,” Choi said, adding that more general-purpose AI tools like ChatGPT can't fill that gap.
In addition to its B2B services for corporate clients, the startup also plans to build B2C tools for AI stock research that will enable users to synthesize vast amounts of data and help portfolio managers make informed investment decisions, Choi said.
Linq will compete with incumbents serving the equity research space with their own AI-powered services — Bloomberg's terminal has a generative AI tool that can summarize earnings calls, and S&P has a document viewer that uses AI to surface relevant information from filings, transcripts and presentations — as well as other startups such as Fintool, Finchat and Finpilot, which offer AI-powered platforms for financial researchers and institutional investors.
But Choi thinks Linq has an advantage. What sets it apart from competitors, Choi said, is that it offers an end-to-end service that manages workflows and streamlines processes. He noted that the company's proprietary data collection system gives investors access to a wide range of structured and unstructured data from around the world, including live transcriptions of earnings calls in languages other than English and in countries outside the U.S.
Beyond the technology, the startup also has the expertise of its two other founding members: Jin Kim, who previously worked in quantitative finance, and Hojun Choi, a former Goldman Sachs banker who has also worked at private equity firms.
The startup already has some big names on its client list: Choi told TechCrunch that Linq is working with Samsung Financial Network to automate the underwriting process, and has more than 20 corporate clients, including Samsung affiliates, KPMG US, and hedge funds across Asia and the US.
The company, which also has an office in Seoul, South Korea, plans to use the new funding for product development, hiring employees and expanding into the Americas, Asia and the Middle East. The two-year-old startup has 12 employees and has been generating revenue since October of last year.