industry spotlight

Trading

Tap into the trading industry, where technology transforms how we analyze markets, execute trades, and access financial opportunities.

Shaping the future of global resource flow

The trading industry is booming due to AI advancements. Digital startup trading platforms are growing in popularity, seeing a 15% annual increase in usage. Given this shift after a rough 2023, trading startups focusing on automation, AI-driven analytics, and solutions for the DeFi space can gain momentum and attract investors.

Why it matters:

With a strategic approach, startups can capitalize on:

  • AI-powered trading simulators
  • Pre-built algorithmic templates
  • Curated ESG investment portfolios
  • No-code/low-code algo builders

Between the lines:

Be aware! The stock trading industry’s growth potential comes with challenges, such as regulatory compliance, cybersecurity threats, and market volatility.

Our team has significant experience with trading startups and knows how to build successful businesses that draw investor interest

$3B+
Funding attracted
600+
Startups supported
80+
Sectors encompassed

What we do:

Our expert team is skilled in securing trading funding, managing M&A deals, creating solid business models and market entry strategies, and devising impeccable and visually appealing trading pitch decks.

Go deeper:

Explore our trading market research to learn more about industry trends, market opportunities, funding strategies, and potential risks.

3x growth
The trading market is on track to triple by 2032.

 

4/10
Millennial investors say they actively trade stocks.

Driven by the demand for mobile-first investing, easy-to-use platforms and high returns
70%+

All retail trading activity now occurs on mobile devices.

20M+

Investors utilize fractional shares trading in the US alone.

$1T

Assets are under management by robo-advisors and automated investment platforms.

VENTURE LANDSCAPE

In 2023, trading startups raised $569M in funds

Key verticals where funds flow:

  • ESG trading
  • Stock trading apps and platforms
  • Social trading networks
  • Regulatory compliance and security solutions

Leading trading VC firms

Write to us to know more

Trading startup challenges

Before disrupting the trading market, address the following challenges.

Technological advancements:

As the industry constantly evolves, new technologies emerge. This can be a challenge for traders who need to stay up-to-date with the latest trends and tools.

Why it matters

Difficulties with tech advancements lead to:

  • Integration challenges
  • Security vulnerabilities
  • Regulatory challenges

What it takes:

  • Invest in regular training and development sessions
  • Implement and regularly update security measures
  • Regularly gather feedback from users of the new technology

Regulatory hurdles:

The trading industry is highly regulated and usually subject to requirements imposed by the SEC, making it harder for newcomers to enter the market.

Why it matters

Difficulties with regulations lead:

  • Hefty fines and legal sanctions
  • Reputational damage
  • High operational costs
  • Volatility in the market

What it takes:

  • Establish robust compliance procedures
  • Collaborate with industry associations
  • Stay updated on regulatory changes
  • Invest in legal expert advice

Market competition:

The trading industry is highly competitive, with established fintech companies, financial trading industry institutions, and trading firms dominating the market.

Why it matters:

Saturated market means:

  • High marketing costs
  • Increased profit margins
  • Difficulties with customer loyalty
  • Hindered growth

What it takes:

  • Leverage cutting-edge tools and data analysis techniques
  • Establish a strong brand identity
  • Build loyalty with educational resources and a user-friendly experience

Fundraising limitations:

Trading industry startups often require substantial initial capital investment to develop and deploy trading algorithms, build trading platforms, and establish connectivity with exchanges and liquidity providers.

Why it matters:

Lack of financial support leads to:

  • Hinder​​ed growth
  • ​​Limited data access
  • Marketing and customer acquisition issues

What it takes:

  • Articulate your unique value proposition clearly
  • Arm yourself with an effective investor outreach strategy
  • Craft a compelling pitch deck

FAQs

How attractive is the industry to potential trading investors?

Despite market volatility, the trading industry has all investors’ attention, driven by technological advancements, and high returns.

If you are a trading startup, how easy is it to raise funds today?

This industry is highly risky which makes raising funds challenging. Yet, armed with a strong tech, robust risk management strategies, and scalable business model with clear potential for high returns — can significantly attract investor interest and facilitate fundraising.

How long does it take to create a pitch deck and financial model for a trading startup?

Our standard timeline for documentation is two to three weeks, but depending on project nuances and our current workload, it could take as long as a month. Feel free to get in touch for detailed insights.

What are the key mistakes in pitch decks in trading startups?

Some decks lack a coherent investment narrative, dampening the overall impact and steering investors towards projects that showcase more clarity and promise. Second, many fail to address the pivotal ‘Why now?’ question, presenting a poor GTM strategy and business model. Finally, many decks fail to demonstrate traction and a solid competitive moat, leaving investors hesitant about their ability to disrupt the media market and bring profit.

How competitive is the trading market?

The trading market is highly competitive, with many buyers and sellers constantly vying for the best prices.

What services do you provide for investors looking to invest or already investing in the trading sector?

We help investment funds conduct thorough due diligence on promising trading projects and offer complete fundraising support to their portfolio companies.

Do you provide trading startup M&A support?

Sure thing! We guide M&A in the trading industry and beyond, from finding deals to due diligence and post-deal collaboration.

Do you make intros to trading startup VCs?

Certainly! If your project aligns with aspects such as round size, team, and product, we can connect you with the most relevant trading VCs. This service is part of our broader investor relations package, which lines up potential investors, prepares founders for the initial meetings, and helps forge cooperation post-deal.

Do you have data or research available to purchase on the trading market?

Certainly! Our specialists deliver customized insights into the dynamic trading sector. Our in-depth research encompasses a thorough analysis of the industry landscape, competitive evaluations, and a broad market perspective. We leverage reliable data sources to help you recognize promising opportunities and potential challenges and identify current investment trends.

Which growth stage of companies have you worked with in the past?

We guide startups from Pre-Seed to Series C+, facilitating interactions with major investors and funds.

Have a trading project in mind? We are here to help

From end-to-end fundraising support to M&A advisory and growth hacking, Waveup will help catapult your trading project to new heights. Leave your email, and let's talk!

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