CloudQuant Business Model
Revolutionizing Alternative Data by Demonstrating Value
The value of Alternative Data must be demonstratable to traders, investment managers, and senior management.
The growing number of AltData vendors is growing exponentially but the budgets in investment firms and among traders is not growing as fast. Every vendor needs clients to grow and monetize their investment. CloudQuant revolutionizes the Alternative Data vendor’s sales process by utilizing our high-resolution backtesting engine, historical news, and fundamental data to prove to the quantitative analyst that there is true alpha in the data set.
Our Showcasing Data service partners with vendors to show the value in the data.
Revolutionizing Quantitative Investing
- That our external research partners can and will innovate.
- That given access to data, and tools our external research partners will find new ways to invest profitably.
- That given access to funding their innovations will be profitable.
- That our external researchers should be treated as partners.
The heart of our business plan is our client algorithm license agreement. The algorithms created by our clients are their proprietary information. We clearly state this in our user agreement.
Once a researcher requests that we fund their strategy, we will review the simulation performance report. If the algo is selected for licensing, we provide the client with a proposal to enter into a mutually beneficial profit-sharing licensing agreement. When both parties agree to these terms we will fund the strategy with our own capital.
Licensed and funded trading strategies are then operated on our own technology, with full oversight from our risk department, professional traders, DEVOPS team, and trading management.
Our licensing partner will receive royalty payments on any net trading profits on a monthly basis.
The licensing partner does not need to provide any of their own capital, and they are not liable for any trading losses.