By Sanford Bragg March 2, 2021
Quiver Quantitative, a web data provider founded last year by two college students, was set up to make alternative data accessible to individual investors. Its data on WallStreetBets has also generated interest from institutional investors, attracted to Quiver Quantitative by low fees and differentiated datasets.
CEO James Kardatzke began the company last February with his brother Christopher, who is CTO of the new firm, while they were still students at the University of Wisconsin. In an interview, James indicated that the inspiration for the company came while interning at a hedge fund. “Alternative data is typically priced for institutional clients and not widely available to retail investors,” he said. “Our goal is to bridge the information gap between Wall Street and non-professional investors.”
Quiver Quantitative’s dashboard allows users to view data either by ticker or by database. The website currently features around twenty datasets including Twitter followers, Wikipedia views, data on SPACs and ESG-related data such as emissions and CEO compensation. “We had six datasets at launch and have been adding one or two new ones every month,” said Kardatzke. “We prioritize on data that is topical and timely.”
One of the most popular datasets is Quiver’s tracking of WallStreetBets mentions, which is available by ticker and by topic such as cannabis, electric vehicles, etc. “Interest in our WallStreetBets data has been huge,” said Kardataze. “Over the last few months, it has been all we can do to keep up with demand.”
The company also offers differentiated datasets such as stocks traded by Senators and House representatives. Based on the firm’s data, one of the most successful Senate traders over the last five years has been Democrat Maria Cantwell (WA) and one of the worst has been Republican John Cornyn (TX). During the recent presidential campaign, the site monitored the correlation between stock prices and the fluctuating betting odds on Biden and Trump.
For technology stocks, Quiver Quantitative tracks mentions and sentiment on social news website Hacker News. The site also monitors tech stock mentions on developer website Stack Overflow.
Although the website was originally launched for individual investors, institutional interest has been growing, accelerating quickly as hedge funds and asset managers sought to analyze WallStreetBets activity. “We now have a mixed client base – both retail and institutional,” said Kardatzke. “We launched an API last October which has been popular with institutions.”
Access to the website’s dashboard is free with registration. Quiver Quantitative’s API is $75 per month for individuals and pricing is ‘case by case’ for institutions.
Quiver Quantitative received seed funding from venture capital and angel investors in December 2020. It currently has four full-time employees and is recruiting for a full-stack developer.
Web-scraped data is one of the more affordable varieties of alternative data. According to analysis by data scouting firm Neudata, web datasets are generally priced 20% below the overall average price for alternative datasets.
Fees for alternative data have been fallilng, and upstart providers such as Quiver Quantitative add to the pressure. Rival web data provider Thinknum had raised its fees last year as it launched a new web traffic data offering. However, it recently launched Thinknum Spark which offers discounted fees to small funds with less than $50 million in assets under management. The move is part of a larger trend to expand the alternative data user base, with flexible pricing being an important component of that strategy.
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