During Step 1, our funding liaison determines how the research and development of your trading robot will be funded. Our funding liaison will research funding options for you and offers support in the process. The process includes creating a business plan, setting up the legal structures, and executing a funding campaign.
The reason for this step is to make the quantitative finance services affordable. By raising funds, you can afford subject matter experts and get the same quality of service as wealthy investors.
Keep Costs Low
The easiest way to help guarantee the project will be funded is to keep costs low. StepsTeam reviews every expense and determines how to cut costs every step of the way. We are able to provide you the same quality of service that wealthy investors enjoy at a fraction of the cost. We keep costs low is by limiting the scope of the projects and automating most of the research and development.
Review the financing option
The fastest way to fund the research and development is simply to pay for it. You can choose to pay in one lump sum or pay for each step as it is completed. StepsTeam uses an online escrow account. You deposit money in an escrow account. We complete the work and you release the payment after the work is completed.
Discuss co-op funding
Are you part of an investment club or know people interested in funding the research and development with you? If so, StepsTeam will use crowdfunding infrastructure to organize and facilitate the funding process. StepsTeam offers volume discounts by adding up the total cost of researching and developing the robots and dividing by the number of contributors. We are able to deliver a variation of the robot to each person who contributes funds. That way each contributor can have their own robot and the robots will not attempt to make the same trades at the same time.
Research Software Development Grants
Our funding liaison will also search for software development grants for you. The federal government and a limited number of corporations serve as the primary sources for software development grants. The majority of technology grant programs only offer funding for nonprofit organizations, for-profit businesses and colleges and universities. Certain grant programs support only open-source software development, while others fund development of proprietary software products. The U.S. Small Business Administration oversees the Small Business Innovation Research program, which offers funding to help small businesses pay for research and development of technological services or products. Eleven departments of the federal government offer SBIR grants. The SBIR program awards funding only to for-profit, American-owned companies that have no more than 500 employees.
As of June 2011, the SBIR program offers funding in two phases: a maximum of $100,000 to support startup efforts during the first six months; a maximum of $750,000 in the second phase to expand results and explore commercial potential over a two year period. The Small Business Technology Transfer program, administered by the U.S. Small Business Administration, offers technology research and development grants for nonprofit research organizations and for-profit small businesses. Five federal agencies and departments offer STTR grants. For-profit businesses must be American-owned, with 500 or fewer employees. Projects eligible for STTR funding can include commercial, scientific or technical development initiatives.
Review Equity-based Crowdfunding
Until the federal government approved the JOBS Act (Jumpstart Our Business Startups Act), securities placement was governed by the SEC Act of 1933. The JOBS Act reduces some of the constraints imposed by the SEC Act of 1933, however putting it into action was been delayed by the SEC. Georgia’s Secretary of State office gave Georgians a head start on the JOBS Act. In 2012, they approved The Invest Georgia Exemption, which makes it legal for non-accredited investors to make intrastate investments (Georgia resident investing in a Georgia company) through crowdfunding. So, now, if you are a Georgia resident and are interested in investing in startup companies based in Georgia, it is a 5-minute process.
Develop the Due Diligence Documents
There are two steps where you may want to attract funds from investors:
Due diligence is a fact gathering process by which a buyer or investor obtains information about the business they are seeking to buy or in which they are seeking to invest, both from a business and legal perspective. Due diligence is a critical phase of any financing, but it can be a confusing and burdensome process, especially for those going through the process for the first time. StepsTeam will facilitate the process of compiling the due diligence documents. The document is a comprehensive funding package that will be provided to potential investors or entities that issue grants.
Concept stage startups are usually funded by individual entrepreneurs, family, friends and angel investors. Providing the documents to potential investors will significantly increase the probability of obtaining funds. The documents address the risks and unknowns while simultaneously increasing the potential value of the opportunity. In short, the documents will answer most (if not all) of the questions for a potential investor. Some of the documents will be created during the step by step process.
Raise the Funds
Finally, our funding liaison will support you throughout the entire fundraising process. Raising the funds will be customized for you based on your resources and the various funding opportunities. StepsTeam will provide a flowchart and timeline so that you will know what to expect before you start the project.
When this step is completed, you will receive a report. It will contain the funding sources were investigated. You will also receive the documents developed during this step.