Question 1

Could you elaborate on how, when (approximately) and to what degree we can expect a return on investment?

Accepted Answer

Hi Haakon! Rather than an exit and potential shutdown from the acquirer, we would prefer QuantConnect and LEAN to remain for decades and continue to expand as the operating system of finance. Additionally, we would like to remain like Amazon - focusing on growth and reinvestment of capital rather than paying dividends. With this growth focus, the best source for an exit would be through a secondary market or our IPO. We believe eventually WeFunder will offer a secondary market for stockholder...

Question 2

What items are included in "cost of revenues"? (Market data? Commissions?)

Accepted Answer

Financial data and compute infrastructure (cloud + colo) are our primary COGS expenses, and some smaller services for automation. We have an optimized mix of cloud technology and dedicated servers.

Question 3

How many employees do you have?

Accepted Answer

Nine doing the work of 30 :) 2 UX | 3 Quant | 3 LEAN + Myself. We plan to grow the UX team as a smooth, bug-free online experience is key to a frictionless, low-touch, sales process. We'll also invest UX bandwidth in better charting for users' research which is a key value proposition for our cloud platform. We get 2000-4000 visits to the platform daily, and estimate that 5% of the traffic is from corporate visitors. We plan to add a sales representative to reach out these corporate clients.

Question 4

Where do you see the 0.8M of the 1.8M revenue coming from for '22 when the avg. of the last 3 months is 80k (* 12 = ~1M) and (I assume SaaS typically) growth is linear

Accepted Answer

We are launching a brand new distribution channel and product line I'm excited about - We will soon offer an environment identical to our cloud VSCode development environment, but for on-premise installations - for a low per-seat price. This will give local users the same ultra-powerful backtesting / research / optimization / live-trading user interface but on-premise. To fuel these on-premise installations firms will need to purchase financial data or convert existing data. Some will work to...

Question 5

Being that we are not investing directly in QuantConnect, rather QuantConnect I EB, the SPV, in the eventuality that QuantConnect goes public will my shares be converted to QuantConnect shares on a 1-to-1 basis? Pre-IPO my SPV shares have no guaranteed value. I believe in the ...

Accepted Answer

Hi Aaron! My understanding is that it is converted on a 1-1 basis (assuming no stock splits/etc). This was the recommended path from WeFunder and keeps things simple for administration with a large pool of investors. I asked WeFunder they said, "the SPV dissolves upon IPO, at which time Wefunder investors are converted on a 1-to-1 basis." Legal gave a more complete longer response below: -- The QuantConnect securities held by the WeFunder SPV would be convertible into common stock at the appl...

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