Over the course of Q2, we were focused on (1) engaging a small number of targeted customers to create a working prototype for OTC derivative automation, and (2) building a production platform. Discussion with these prospects has further validated the hypothesis that existing workflows for communicating transactions are manual, error prone, and antiquated. We continue to see this as a natural entry point and initial wedge into buy-side (and ultimately sell-side) workflows. Our focus is to relentlessly solve these immediate customer problems through a combination of workflow technology, consistent data models / APIs, and automation. Our goal for the next quarter is to get this running in production for one of these clients.
Long term we envisage an entire class of problems which fall into the same general pattern: buy-side firms are interacting with many different counterparties, each of whom use different data models, formats, and workflows. The buy-side firms we speak with are attempting to manage this complexity themselves. The dealers have their own portals, but these don’t solve the fundamental market structure and fragmentation issues. The industry lacks a modern, open, API-first, and dealer-agnostic platform which is setup to allow for collaboration and automation. We are enthusiastic about solving real initial buy-side pain points, and motivated by the potential to expand this into something larger. We are excited to have you on this journey, and look forward to your feedback.
| Quarter | Q1 (31Mar24) | Q2 (30Jun24) | Q3 (Projected) |
|---|---|---|---|
| Cash Balance ($K) | 3,949 | 3,789 | 3,500 |
| Monthly Burn ($K) | 31 | 60 | 75 |
| Runway (Months) | 128 | 56 | 46 |