Problem: Last week, Matan Feldman (the Founder and CEO of Wall Street Prep, a legendary company for getting college graduates and new entrants into Wall Street and up-to-speed on skills to be an entry level financial analyst) published a great 10 minute video about the power of ChatGPT.
He does a great back-and-forth with ChatGPT to create an LBO. I was mind-blown when I saw this. He then went out to correct some mistakes and created an LBO slide w/ data tables.
What does this mean for Wall Street when LLMs (even pre fine-tuning) can provide such great solutions that usually companies would hire entry-level individuals for?
ChatGPT is already a "middle-bucket" Investment Banking Analyst.
And once again, my mind is blown.
Watch this video to see me pretending to be a senior banker giving it tasks. (Shout out to Chris Reilly for providing inspiration for the prompt).
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What you'll see
➡[0:00-3:36] Intros and setting up the prompts
➡[3:30-4:30] Completes Task 1 - LBO analysis
➡[4:30-5:30] Corrects a mistake I pointed out.
➡[5:30-8:20] Completes Task 2 - Create an LBO slide w/data tables
➡[8:20-9:30] Wrap up and takeaways.
🔔 A few specific takeaways
1. It made a common mistake that many IB analysts make.
2. When I pointed it out, it corrected the mistake instantly.
3. The slide it created had perfect detail but the formatting was not great.
4. It works faster than any analyst on planet earth.
🔔 🔔 Some big picture takeaways
1. It's good at computation - For all the talk about how ChatGPT is not great
at computation, it is MUCH better than just a few weeks ago.
2. ChatGPT is moody - It's not always as good as what you saw in the video. I tried the same prompts a few times. On average, it made 3 mistakes. It always corrected it when I pointed it out. My assumption is this will improve rapidaly.
#wallstreetprep #investmentbanking #financialmodeling #privateequity #chatgpt
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Solution: As per usual, I asked ChatGPT to to write the business plan for me.
Business Plan: "ChatGPT Financial - AI-driven Financial Analyst Solutions"
Executive Summary: ChatGPT Financial aims to revolutionize the financial sector by leveraging AI-powered solutions for financial analysis tasks typically performed by entry-level employees. In an industry where speed, accuracy, and cost efficiency are key, ChatGPT Financial provides an innovative approach to streamline operations, reduce overhead costs, and enhance productivity.
Market Analysis: The global financial analytics market size was valued at $10.9 billion in 2020, expected to reach $22.5 billion by 2026, exhibiting a CAGR of 12.2% during the forecast period. As technology continues to advance, the demand for AI-based solutions in the financial sector is growing exponentially.
Product/Service: ChatGPT Financial offers a solution capable of performing high-level computations, correcting its mistakes, and learning from them, making it a valuable asset to financial institutions. It can perform complex tasks such as creating Leveraged Buyout (LBO) models, generating data tables, and more in record time.
Value Proposition: ChatGPT Financial reduces the need for entry-level analysts, decreasing the expenses tied to hiring, training, and retaining staff. Our solution is fast, reliable, and capable of working round-the-clock, thereby increasing productivity and providing time-sensitive financial analysis.
Sales/Marketing Strategy: Our target market includes investment banks, private equity firms, financial consultancies, and other finance-related institutions. We will implement a B2B sales strategy, focusing on demonstrating the cost savings and productivity benefits of our AI solution.
Implementation Strategy: The initial phase of our plan is to fine-tune ChatGPT Financial for use within the finance sector. We will then conduct a series of live demonstrations and case studies with potential clients to showcase our product's capabilities and value. Post product validation, we will roll out our services on a broader scale, targeting key players in the market.
Revenue Streams: ChatGPT Financial will employ a subscription-based model, offering different tiers based on the scale of operations and the level of service required. These subscriptions will include regular updates, improvements, and dedicated customer support.
Future Growth: As our AI technology continues to evolve, so will our service offerings. Future plans include integrating ChatGPT Financial with other business operations, creating an all-encompassing AI-driven financial ecosystem.
In conclusion, ChatGPT Financial, with its cutting-edge AI capabilities, can take financial analysis to new levels of speed and accuracy, providing an invaluable tool for any financial institution looking to streamline operations, reduce costs, and stay competitive in an increasingly digital world. This combination of market demand and technological capability makes ChatGPT Financial a billion-dollar startup idea.
Contributed by: Michael Bervell (Billion Dollar Startup Ideas)