Max Dupont
Miami, FL (USA)
Role(s):
Founder/Owner/Principal
Quantam
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Startup
Location:
Miami
Industry:
Finance
Year Founded:
2004
Number Employees:
10-50 people
Business Stage:
Growth (profitable)
Entity Type:
"C" Corporation
Description:
Management-owned corporation Quantam specializes in high frequency trading techniques and has been operating since 2004, reaching $ 1.5B under management before turning into a “proprietary trading” firm in 2010.
Relying on an existing top level infrastructure, including a worldwide operating presence and direct proximity hosted connections to electronic markets, the group now wants to accelerate its deployment as a “portable” global investment enterprise. This will be achieved by offering a set of innovative financial products empowered by cutting edge technological trading and risk management engines.
In contrast to the classical investment model, the competitive advantages of "high frequency trading" are decisive: adaptability, scalability, non correlation, minimum risk arbitrage, high technical barriers, immediate liquidity, etc.
Timing is favorable to invest this area, temporarily abandoned by major institutions for political reasons and not yet mastered by the emerging countries financial industries. The future of finance undoubtedly lies in the scientific and technical approach of investment and risk management, within a context where exchanges are now fully electronic, fast growing, and playing an increasing role in the global economy.
The growth project relies on a diversity of revenue sources which are already in place (proprietary trading, asset management, structured products, services). These business lines fully benefit from the pooling of resources and infrastructure already engaged for the last seven years. Stability is also ensured by the high degree of automation at all levels of the organization, making its value creation engines non-dependent on human factors.
Quantam has the power of trading desks in a major global investment bank, without the costs.
Precedents show that the profitability of such a company is potentially unlimited. Technology allows us to leverage revenues at marginal cost by inter-weaving finance and technical innovation. An EBITDA well above $ 10M is expected for 2014.
We will consider selling the resulting entity by 2014, as this highly profitable group will then constitute an ideal ready-to-use, high tech capital market division for emerging financial institutions. The value of the group will then reflect the high time value of the group’s strategic position and technological assets.
To complete this growth stage accurately, current shareholders offer today a significant stake of the equity to new partners bringing $ 5M equity capital and risk-neutralized seed money in order to increase prop trading level and secure strategic investments.