Our Future Podcast
00:17:52 · Simran Sandhu, Michael Sikand
[00:17:52] S1: But you can also implement and add your own proprietary documents with the public data. Right? So you're able to cross reference. And that's really interesting too. [00:18:02] S0: Yeah. That's where I think the value is, right? Because, you know, there's even you could like prompt it to update a deck. And that gets me to my next point, which is think of how much menial rote labor is involved in the financial services industry. Yeah. There's so much, you know, just putting words in a document. You know, you you have Princeton's hottest grad, you know, putting stuff in Excel and and and and a PowerPoint, right, when they could be working on higher leverage research activities. And I think that's what this kind of personal ChatGPT for finance is enabling, to pull data, you know, right out of thin air and be able to add value to communications very quickly and be a just for analysts to be a greater value add to their partners and inside the organization as a whole and for partners to depend less on the low... The lower guys, right, to be able to use this tool, to quickly source data instead of waiting on an analyst to be on call to get it done.
00:18:52 · Simran Sandhu, Michael Sikand
[00:18:52] S1: You know, now that I think about it, it's probably closer perplexity than it is a chat GPT. And the reason why I say that is because perplexity right now feels very much like a research tool, right? You have a query of some kind and you have these hyperlinks where you can identify the source very easily, right? So if it provides some kind of answer, you know exactly where it's pulling that answer from. Same thing is taking place here, right? So when you enter a question or you enter a query within Brogo, it's going to give you an answer. But then there's this footnote of sorts where you can click on it and it'll tell you exactly what document it's pulling from, what page it's on, so you can go confirm for yourself. Because again, finance is one of those spaces, especially when you're working in banking and private equity and hedge funds, where your advantage relies in just having 0.001% more accuracy than all of your competitors. So a paraphrased answer may not necessarily get you there. You need to confirm and make sure it is correct and you believe in the source that it's coming from. For sure. And you [00:19:56] S0: can't make mistakes or you're getting fucking Yeah. [00:19:59] S1: Yeah. The margin of error is so, so, so tiny. And so I think they were smart to implement that. Right? So it's like, oh, great. Interesting. Where did you get that, you know, analysis from, John? And it's like, well, I got it from page 25 of this investor deck. [00:20:12] S0: For sure. A partner doesn't wanna hear you got it from Rogo or from Shagibi
00:20:12 · Michael Sikand, Simran Sandhu
[00:20:12] S0: For sure. A partner doesn't wanna hear you got it from Rogo or from Shagibi [00:20:15] S1: team. Exactly. [00:20:16] S0: Right? They don't they don't function like that. They want, like, hard stats. They want credibility. You know, they're presenting multimillion dollar, sometimes billion dollar deals. [00:20:22] S1: High stakes. [00:20:23] S0: I think another cool part of this is the industry they're targeting, right? Sure. So many people are trying to build a ChatGPT for X, right? You know, it's just like the Uber analogy, Uber for X. But when you think about doing an analogous business like that, it's best to do it in a very, very profitable category. And what more profitable category than finance? It's really interesting. You know, this is a topic that we love to speak about, but young people learning the power of pricing their products and gaining the confidence to do so. Yeah. You know, they didn't even know what to kind of price this at, but they're like... They were talking with someone and he's like, yeah, just add a few zeros to that. Right? Because people in finance won't even take you seriously if you're not pitching a very expensive product. So it's just a cool part of that industry for a startup to be in if they can kind of break in and get a sale.
00:21:09 · Simran Sandhu, Michael Sikand
[00:21:09] S1: It's the truest kind of reflection of the statement quality is reflected in price. For some reason, while it's not necessarily true, right? If you come in with a $2,000 offer, that's a lot of money for your typical software company when it comes to intelligence of any kind. But to a bank, they will laugh you out the door. And it's so funny too, because like, I feel like finance is inherently cutthroat. And so when we were asking Gabe and we were like, What was your experience like trying to sell to the banks? Right? And he was just very honest with us. He was like, I go to these banks and I was telling them about AI. At that point, like AI just wasn't as prevalent, right? Like, sure, people knew of it, but like they weren't thinking about how they could imply it and embed it in their work flows. And so they would laugh them out the door. They're like, get the hell out of here with this AI nonsense. And those same people came back to him and was like, hey, guys, I know I laughed you guys. Think it worked. But listen, we might be interested in your solution here. [00:22:08] S0: I changed my mind. [00:22:09] S1: Yeah. You did change your mind. Now, how many millions do I need to pay for your services? You know what I mean? They were kind [00:22:15] S0: of needed an AI strategy.
00:22:15 · Michael Sikand, Simran Sandhu
[00:22:15] S0: of needed an AI strategy. [00:22:16] S1: Yeah. And they just said they like spitballed a number. And it was like one of those things where you just keep going up and up and up until you hear no. And they're like, sounds about right. And I was like, what a great answer to hear when you just like spitball a number. And on the other side, this very tenured banker who just is in charge of all this spend is like, yeah, you know, I totally hear you. That makes a ton of sense. Yeah. It's very hard, [00:22:41] S0: I think, for young entrepreneurs to price their product, though. There's a lot of, like, impostor syndrome that comes with building a product that's, you know, not fully ready, hasn't been in market yet. And there's a chicken and the egg problem, or I'm not sure that's the best way to describe it, but it's hard to, you know, sell someone something without experience in doing so. But then you also don't want to discount the work you're doing because it's taking away valuable resources from someone who might pay. So it's a tricky road, right? [00:23:07] S1: I think pricing is inherently tricky. Yes, I agree. Though that said, like the comps exist, right? Like you can see what Bloomberg is charging to get at least a rough idea on what ballpark you should be in, right? Like Bloomberg is notorious for being super Yeah. [00:23:24] S0: Jamie Dimon's like, we got to cut this shit. And that's Jamie Dimon talking.
00:23:24 · Michael Sikand, Simran Sandhu
[00:23:24] S0: Jamie Dimon's like, we got to cut this shit. And that's Jamie Dimon talking. [00:23:29] S1: Yeah, that is Jamie Dimon talking. Now that said, I think what's really interesting here is maybe some of the analogies that we could draw to like a CB Insights or a Tegus, right? So all of those platforms are also involved in kind of curating together these investor reports, scraping this data. Now, one thing that makes those platforms so interesting is that they have these like proprietary interviews that they do with professionals or industry executives, right? So that's kind of their advantage on top of the public data scraping that they do. And so, you know, I was really interested in that because I asked him, was like, So are you just trying to replace Tegus and like take this one step further? And he's like, Well, that's just kind of hard to do. [00:24:13] S0: Because we don't have the data. [00:24:14] S1: We don't Well, he didn't They don't have the interviews, right? So that they don't have those coveted, like the interviews that they have with these people. And it just made me think, Wow, like you're telling me like an hour or two hour You're long [00:24:27] S0: telling me everything is a content company? [00:24:29] S1: Yeah, yeah. No kidding. But isn't that crazy to you? Like you're telling me the ability like someone taking the time or having the access to go interview like, I don't know, the CEO of Eli Lilly or whatever that looks like and putting it into a report is worth like hundreds of thousands, if not millions of dollars. Like, that's crazy to me.