Goldman Sachs (NYSE: GS) announced a $10 million investment in an American based technology startup, Crux Informatics Inc. The startup enables financial institutions to outsource the processing of data to advance in business insights and will use their funding to expand their business and hire more workers. Goldman Sachs invested through the Principal Strategic Investments division which backs young financial technology firms. These firms have been taking on a greater interest in using big and diverse sets of data to inform their business tactics. Investments in young fintech startups has been common as these big firms offer help ranging from analyzing and managing data to running better and more efficient compliance processes.
Crux processes data for financial companies which include banks, hedge funds, insurers, and private equity groups to focus on resources on carrying out more differentiating tasks. Such tasks include extracting value from information built from artificial intelligence algorithms. The company doesn’t sell or resell data and has been establishing a network of information suppliers to help clients discover new sources.
“The emergence of unstructured data as an important input into the investment process creates a great opportunity for financial institutions, but only if actionable insights can be extrapolated from it,” Darren Cohen, global head of Goldman Sachs’ Principal Strategic Investments group, said in a statement.