Goldman Sachs has invested in a financial technology startup which analyses large volumes of stock market information to provide instant feedback to traders.
The US firm’s Siri-style technology is able to answer complex financial questions about global events in plain English by analysing unstructured data.
According to the Financial Times, Goldman Sachs has led a $15 million (£10m) funding round for Kensho, as well as investing an undisclosed sum. It is understood that the bank is now the largest strategic investor in the Cambridge, Massachusetts-based startup.
Goldman now plans to deploy the technology throughout its business in a bid to automate its own processes and access more information without the need for data scientists.
“Wall Street historically was constrained to playing in the 20 per cent of data that move markets,” Daniel Nadler, chief executive of Kensho, told the FT.
“Every Wall Street bank could only look at – with any real speed or automation – financial statistics: P/E ratios, and book value and market cap and similar things.”
The investment deal will see both Rana Yared, managing director at the bank’s securities division, and Don Duet, technology division co-head move to Kensho’s advisory board.
Goldman Sach has increased its investments in startups in recent months, including deals with Motif and Perzo, a communications platform it is seeking to develop as an alternative to Bloomberg’s messaging technology.
Kensho has previously received money from Google Ventures, Accel Partners and CNBC, securing $10 million (£6.4m) in seed funding.