“The company aims to decrease the barrier to entry for financial firms and creators who don’t want to deal with fund operations.”
Quantbase, a Y Combinator-backed investment company that helps financial companies and individuals with an audience to turn their investment research/data into an investable strategy, has tapped Alpaca to launch its investment platform.
The SEC-registered investment advisor will leverage Alpaca’s API to allow users to build, run, and manage every strategy on the platform from end to end.
Founded in 2021 by Thomas Stewart, Som Mohapatra, and Allen Calderwood, Quantbase has been managing its own class of investment funds for thousands of clients. The firm made its central focus to help emerging managers, investment authors, and content creators do the same.
“The company aims to decrease the barrier to entry for financial firms and creators who don’t want to deal with fund operations”, Som Mohapatra, CIO and Co-founder at Quantbase, explained. “It helps them become investment managers by co-creating strategies from their investment research.”
To that effect, Quantbase has partnered with Alpaca Broker API. The integration with Alpaca allows Quantbase partners to easily offer their investment strategies for their clients, offering a full brokerage experience. It also allows Quantbase to offer a user-friendly investing experience.
How it Works for Investment Managers
- Quantbase works with managers to generate a quantitative portfolio from the data they already have or creates a factor-based long-term portfolio from their investment research and data.
- The company builds a custom-branded landing page for the manager’s audience to invest in their strategy. The manager has access to a dashboard where they can set a subscription fee or integrate with their existing premium product.
- The manager launches their strategy to their audience with full control over subscriptions, client communication, and design. If the manager wants to update their strategy, Quantbase works with them to seamlessly change the strategy execution.
How it Works for Clients
- If the investor lives in the US and has a US bank account, they can sign up and go through Quantbase’s onboarding process. The company will ask for their bank account information and personal information to verify their identity.
- The investor chooses which funds they would like to invest in. They can choose Quantbase funds or funds that the company has co-created with its partners.
- The investor chooses their desired percentage allocation between the funds and deposits the funds. In two to three days, Quantbase receives the deposit and takes care of the rest. All investment rebalances within the chosen funds are done automatically.
- There are no lockups, so investors can withdraw or transfer out of Quantbase whenever they want.
Alpaca is an embedded financial technology platform that offers crypto and stock trading, real-time market data, and end-to-end brokerage infrastructure through modern APIs.
The firm has raised over $100m in funding and is backed by Portage Ventures, Spark Capital, Social Leverage, Tribe Capital, Horizons Ventures, Unbound, Eldridge, Positive Sum, Elefund, and Y Combinator.
