The company will use the capital to expand its operations.
Co-founded by John Fawcett, CEO, and Jean Bredeche, CTO, Quantopian provides capital, data, a research environment, and a development platform to algorithm authors (quants). The company offers license agreements for algorithms that fit its investment strategy, and licensing authors are paid based on their strategy’s individual performance. Its community now numbers over 80,000 members including finance professionals, scientists, developers, and students from more than 180 countries from around the world. They collaborate in forums and in person at regional meetups, workshops, and QuantCon, its flagship annual event.
In addition to the above mentioned transaction, Steve Cohen of Point72 has agreed to invest up to $250m in a portfolio of algorithms managed by Quantopian. With these new funds to manage, the company will be able to make larger allocations to more algorithms selected from its community. Licensed algorithm authors earn a royalty of 10% of the net profits generated by their algorithm. With larger allocations, profitable algorithms will receive larger royalty payments.