AI startup taking on IBs raises a further $50m
Keen to hear from those who've either used Rogo or have thoughts on the AI I-banking space in general. Thrive have plugged another $50m into Rogo AI, effectively developing tools to replicate the grunt work juniors have to trudge through.
Thoughts on this, the space and where this all leads in 5 years? A first promising step to automating all the boring shit away...
I’m of the belief that AI is going to change everything very quickly. There’s an argument to be made that AI will be tools and you’ll still need people to deploy it/new jobs to service it, but I see headcount reductions. Computer engineering is already seeing a massive hit, most code is now AI generated.
This is obvious take lol Ofc there’s headcount reductions when1 anslyst with solid AI can do 3 analyst worth of work in the same time
Watch this thread flooded again with nay-sayers and deniers explaining how you can't use AI for whatever reasons in 3/2/1 ...
TBH I also think AI will completely disrupt professional services as we know it. I always think of what it can do now is nice but what might it be able to do in 7-8-9 years from now?
IB analysts in the 80s when Lotus 1-2-3 was invented: "Oh no we don't have to build spreadsheets by hand any more, this software is going to take our jobs!"
Ignore title. I work at a very, very well-regarded venture capital firm that actually took a look at Rogo. Off the bat, Rogo is not an agent. It is not intended to be/replace an IB/PE/HF analyst. Instead, it's a much smarter and more efficient tool for junior employees in finance to use. The majority of its bull case will be displacing a lot of the existing software used at these firms, and reducing the headcount. There is still a need for a human to go through and prompt it and work with it to create deliverables, but using Rogo will be substantially easier/quicker, which eliminates the need to hire so many junior employees.
I expect going forward, like how it's expected that someone knows how to use CapIQ, the same will be the case for Rogo (or whatever tool ends up winning this market). Like how nowadays most software engineers have some experience and are almost expected to use things like GitHub Co-Pilot, Cursor, etc. Think the same will be the case with GTM people and tools like Day AI as well... this isn't just something affecting finance.
At a bank that has Rogo, and as of now it feels like a pretty shit ChatGPT wrapper that has access to CapIQ. It also hallucinates sometimes so you have to check anything related to searching for deal values, etc. It’s main use case is summarizing earnings updates. I’m sure it will continue to get better, but it’s not close yet.
Likewise have heard the same thing. Not great
AI will make every company look like a hedge fund.
Less people.
More compensation per head.
Way more.
It might not be this tool, but something will definitely displace the need for as many raw hours as IB currently requires - or really any white collar role. So banks will hire less people, and pay a lot more for the best talent that can utilize these tools.
We're doing it across our portfolio in general and it's definitely starting to displace junior white collar roles, even roles with 1 - 2 years of exp...
saw there's a company in the last YC batch called OffDeal - call themselves an "AI-native investment bank" and in the long run claim to want to replace traditional investment banks instead of selling to them. curious to know thoughts - personally am pretty skeptical of this business model
Eh, it could happen eventually
What are the odds this is some kind of Rogo guerrilla marketing campaign...
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