Anyone have experience selling technology to hedge funds, family offices, etc. ?

fan27

fan27

I am getting ready to release a beta version of a Quant SDK (Software Development Kit) I have been working on for the past year. Assuming the feed back is positive from beta testers, I plan on selling the SDK along with supporting products and professional services. My target market is small to medium hedge funds or family offices that might not already have an established semi-automated pipeline for finding profitable algorithmic strategies.

I have worked as a software engineer at a software company for the past 13 years that sells SDKs among other things so I know a bit about the software business and what makes a successful software product. Regarding the sales side of the equation, are there any special considerations selling financial technology that I should be aware of? Does anyone on this board have experience selling/marketing financial technology? Who knows, maybe this could be a business opportunity for the right individual.

thanks!
fan27
 
fan27 said:
Who knows, maybe this could be a business opportunity for the right individual.
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What are you offering as far as compensation? As far as vertical or geographic territories? Good salespeople aren't cheap.
 
Hard to answer that without knowing what said person would bring to the table in terms of experience and ability.
 
Is there a market of family offices that look for their own automated strategies? I figured most would be outsourcing pretty much all their quantitative investment needs unless they are really big. And there are only a few of those and they would be like mini Citadels.
 
We are a family office and we look at everything that could help - mostly at FO shows and products our brokers recommend. Always looking for enhancements that play well with our brokers. Structure isn't as much the issue as the product mix and scale.
Many multifamily offices have huge scale,
 
ajacobson said:
We are a family office and we look at everything that could help - mostly at FO shows and products our brokers recommend. Always looking for enhancements that play well with our brokers. Structure isn't as much the issue as the product mix and scale.
Many multifamily offices have huge scale,
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Thanks for the post ajacobson. That is helpful info!
 
Notwithstanding a day+week like today, I am in a similar position.

I have dipped a toe into the regulatory waters, and have sourced some locals (Indianapolis),
and have begun lining more of those ducks in a row.

I suspect I am a year out, barring set-backs.
(And, occasionally, timelines shorten, but I am so much in need of a vacation/step-away right now, I'm am no judge.)

The thing I would recommend (and something of which you are already 1,000% aware) is to go for quality, quality, and *more* quality. Have it all POLISHED. Reward, risk. {"Great!"} But in this (Ever-Bull) environment, how do your {projected} results NOT correlate to the larger macro story?

Get that narrative going, and your fund will sell itself. I mean, this Bull is fine, sure: but within a year, and the smart ones perhaps right now: they be a'lookin' for the market turn, and the antidote.

That's where you come in. :)
 
fan27 said:
Hard to answer that without knowing what said person would bring to the table in terms of experience and ability.
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That sounds like either "not much," or "don't know, I have no experience."
 
truetype said:
That sounds like either "not much," or "don't know, I have no experience."
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Talk of territories, compensation, etc. is a bit premature as the product is not even in beta yet. Anyone I would bring on at this early stage would likely be in some sort of partner capacity. Terms, compensation, ownership is all negotiable. I don't pretend to be a professional software salesperson. Hence the whole purpose of this thread.
 
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