Goldman’s Homegrown Start-ups 🌱
Goldman’s Homegrown Start-ups
A banker’s hours are not kind, but Goldman Sachs has given its workforce a chance of escaping the grind. The premise is simple: employees form teams and pitch a start-up idea to the higher-ups. After some umming and ahhing on their part, five winning start-ups are picked, and the masterminds behind them are given a briefcase full of cash and two years to make them happen!
This is crowdsourcing at its finest, and it’s a win-win. Goldman pleases both investors by not wasting their money in the bubble-like private market, and workers by getting their creative juices flowing. The market also likes the timing. Low interest rates are working against the entire banking industry, and Goldman is starting to look like an antique next to its modern, fintech competitors. Stand still and risk getting left behind! Attack is the best form of defense for Goldman, and its charge will be led by its own!
You’re probably wondering what ideas won this competition, right? A new app store, and some cyber-security software to stop hackers stealing all of the bank’s dosh! That’s the beauty of this in-house approach; every start-up is tailored to Goldman, and Goldman only. Putting its 2008 bailout conveniently to one side, the bank has a reputation for solving its own problems.
But as investors who’ve tried their hand at venture capital will tell you, this isn’t a sure bet. Most hopeful upstarts die in their infancy, and so patrons need to be careful when forecasting future profits. It’s not uncommon for investors to discount a start-up’s profit predictions by 25%! What do you reckon the odds of success are here?