In conjunction with the shuttering of Quantopian in 2020 - another company that aimed to democratize quant finance - the precarious state of QuantConnect's finances demonstrates the difficulty of carrying out such a mission. QuantConnect's self-described mission is to "democratize finance," that is, to level the investment playing field by making sophisticated tools and data available to individual investors. So far, the crowdfunding money its users have pledged should keep the lights on for another 1-2 years. QuantConnect's financial pictureĪccording to QuantConnect's SEC filings and audited financial statements, the company lost $1.7MM in 2020 and $1MM in 2021, and as of August 2022 had approximately $411,000 cash on hand with a burn rate of $43,000 per month, giving it less than a year before it runs out of cash. In this article, I explore what QuantConnect's financial statements reveal about the retail quant trading market. The company's associated regulatory disclosures (required by the SEC for equity crowdfunding offerings) reveal that the fundraising is a matter of survival. QuantConnect, a quantitative backtesting and trading platform serving mostly retail traders, recently announced a crowdfunding campaign seeking to raise money from its community of users.
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