Sequoia Capital invests in AI tool that could replace junior bankers
Young bankers often work upwards of 80 hours a week building PowerPoints and detailed models ahead of mergers and leveraged buyouts
Sequoia Capital is making a bet on the future of Wall Street, leading an investment in Rogo Technologies, a start-up developing artificial intelligence tools to make bankers more efficient, at a valuation of US$750 million, according to people familiar with the matter.
The New York-based company builds software that helps investment bankers with certain tasks and eventually aims to create the AI equivalent of a banking analyst. The new deal more than doubles Rogo’s valuation from earlier this year, when Thrive Capital led a US$50 million series B investment in the company.
The start-up is likely to raise US$50 million and US$100 million as part of the new deal, which has not yet closed, said the people, who asked not to be identified because the information is private. Spokespeople for Rogo and Sequoia declined to comment.
Rogo was founded in 2022 by former investment bankers Gabriel Stengel, who worked at Lazard, and John Willett, who worked at JPMorgan Chase & Co, along with Tumas Rackaitis, who was formerly a software engineer at Gilder Gagnon Howe & Co. Earlier this month, the company hired former Lazard managing director Rahul Rekhi as president.
Young bankers often work upwards of 80 hours a week building PowerPoints and detailed models ahead of mergers and leveraged buyouts. Rogo says its software shortens that process. It uses AI to create slide decks – a core part of an investment banker’s workflow – as well as helping draft initial public offering documents and the financial models that underpin deals.