Kognetics is bringing AI to Investment Banking & M&A decision making

Investment Banking 2.0 | January 12, 2019

Kognetics is bringing AI to Investment Banking & M&A decision making

Kognetics is an Intelligence Augmentation (IA) platform for enterprise decision making. Our platform and solutions are designed to empower strategy, advisory and investment professionals to make dramatic breakthroughs in solving specific industry and domain problems.

In particular, Kognetics has been helping investment banks to dramatically transform their deal sourcing engine by bringing real-time decision analytics to buy-side and sell-side idea generation. Where it takes weeks and months of long hours and gruelling work to consistently source good ideas that can fuel deal sourcing and thought leadership at an investment bank, Kognetics can do that in real time with a few clicks.

A high-performing deal sourcing engine at an investment bank requires up-to-date knowledge on:

  • Industry map and emerging industry segments
  • Industry trends in a crowded market which is continuously changing
  • Buy-side activity & strategic priorities
  • Investment activity & trends
  • Evolving sell-side ecosystem & opportunities
  • Key influencers & decision makers

Furthermore, in order to gain an edge in a crowded and competitive deal market, the deal sourcing engine requires a decision analytics layer that continuously mines this knowledge for actionable and differentiated insights.

However, the tools available to solve such problems have been quite general (i.e. office productivity tools) and have been limited to structured data (BI, analytics). Hence the investment bankers spend long hours and significant mental capacity to collect information, understand the context and model their decisions and make decisions. Such methods are being rendered less effective with exponential growth in data and information to consider and shorter times to make decisions.

The situation is further exacerbated by growing variety of data and insights that are now available to tap into e.g. information databases, company web-pages, ever increasing access to news from companies and social media.The decisions involved are also complex as they require one to deal with ambiguity, uncertainty and fast changing decision context.

Kognetics is transforming this decision making process with a unique approach that combines domain expertise with knowledge graph concepts and artificial intelligence technologies to replicate decision making logic that was until now believed to be exclusive to experts.

Natural Language Processing & text analytics: Technologies that turn raw structured & unstructured data into facts and take in all manner of stimuli with understanding of the world and create and update facts as they become available

Knowledge Graph: Technologies that organize what we know in ways it reflects our own thinking process and combine what we know with what is changing

Machine Learning & Graph Analytics: Technologies that help us understand, analyze, reason with what we know replicating our decision making logic and aiding our cognitive processes

Natural Language Interfaces: Technologies that help us interact and develop actionable insights and new alternatives by using the computation power of the systems without mastering the inherent complexity

For example, Kognetics with just a click, can provide, for all the industry segments in Cyber Security space:

  • Historical acquisition trends (Acquisition Momentum)
  • Predict likely intensity of M&A activity in near term (Acquisition Likelihood)
  • Identify strategics and their critical gaps given the market trends and competitor activity (Strategics with Sub-industry Gap)
  • Identify companies that are likely to hit primary buyout market and can be attractive targets (Companies Due for Exit)
  • Identify growth companies using signals captured from a variety of both structured and unstructured sources (Growth Companies)
Industry segments in Cyber Security

Note: Kognetics covers in all 114 sub-industry segments as part of Cyber Security. The above chart is a snapshot of the complete output.

A number of investment banks and advisory firms are using Kognetics to:

  • Understand emerging industry segments in a crowded technology market which is continuously changing
  • Comprehensively understand industry trends that fuel idea generation and thought leadership
  • Mine deep industry insights to prioritize target segments for business development
  • Explore comprehensively mapped ecosystem to effectively prospect companies, investors, investment partners, founders, board members & influencers across industry segments
  • Identify & execute buy side idea opportunities in real-time
  • Identify & execute sell side idea opportunities in real-time

If you would like us to showcase the platform to or if you would like to know more details about Kognetics, please do reach out to us here

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