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AI-Powered Startup Growth: Goldman Sachs Spins Out Louisa
In this article, we discuss how Goldman Sachs, a prominent Wall Street investment bank, has recently spun out its first startup, Louisa, from its internal incubator program. Louisa is a networking platform for employees that has been funded and owned by Goldman until recently. Now, founder Rohan Doctor is focused on expanding the client base of Louisa beyond Goldman employees.
The Birth of Louisa
Louisa is a networking platform that leverages artificial intelligence (AI) to create user profiles and facilitate connections between employees who can benefit from knowing each other. It automatically pulls in newsfeeds from various sources to identify potential connections and opportunities. Doctor refers to Louisa as an “AI-powered LinkedIn on steroids” due to its advanced profile matching capabilities.
Goldman Sachs and Digital Transformation
Under CEO David Solomon’s leadership, Goldman Sachs has made significant efforts to accelerate its digital transformation. The establishment of its incubator program, to which Louisa belongs, encourages employees with startup ideas to develop them within the company. This initiative allows Goldman to tap into the entrepreneurial spirit of its workforce and foster innovation.
The Inspiration behind Louisa
Doctor, a 17-year Goldman veteran with experience in Hong Kong and London, came up with the idea for Louisa after successfully closing a massive deal in 2018. He realized that the success of the transaction was largely due to chance encounters and informal networking, and he sought to create a more systematic and efficient way for employees to connect and share knowledge.
Addressing the Limitations of Traditional Networking
Professional services firms like Goldman Sachs heavily rely on the expertise and connections of their employees. However, there is a limit to how many colleagues one person can know personally. Doctor recognized that this limitation leads to missed opportunities and disconnected colleagues, which costs companies billions of dollars. Louisa aims to overcome these limitations by providing a smart networking platform that facilitates meaningful connections based on shared interests and goals.
Expanding Beyond Goldman Sachs
Louisa initially targeted Goldman Sachs employees and gained over 20,000 monthly active users within the company. However, Doctor has recently started signing up clients outside of Goldman, including a commercial bank and a venture capital fund. They plan to focus on a select few professional services clients before expanding further.
Timeliness of Louisa
Doctor believes that the timing is right for Louisa’s growth for two main reasons. Firstly, the emergence of generative AI technology, like OpenAI, has revolutionized the way individuals can describe themselves and their expertise. Louisa utilizes this technology to quickly map out users’ interests and facilitate effective profile matching. Secondly, the shift towards remote and hybrid work arrangements has disrupted traditional forms of employee interaction. Louisa enables seamless networking in these new work environments, making it more important than ever.
In conclusion, Louisa’s spin-out from Goldman Sachs represents a significant milestone in the investment bank’s digital transformation journey. It showcases the importance of AI-powered networking platforms in facilitating meaningful connections, especially in the context of remote and hybrid work. As Louisa expands its client base beyond Goldman Sachs, it has the potential to revolutionize how professionals connect and collaborate across industries.
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