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> The write up is reviewed internally by member of the Instavest team and is cross checked for financial discrepancies against SEC filings. Is this really scal

• jessedhillon 11y ago
  > Is this really scalable? To what scale? If they've got ~100,000 active lead investors, each executing one trade a week, that's 1,000 reviewers reading 100 plans a week. If it takes 15-30 minutes to read and validate each one (I'm assuming a cursory check here), then we're talking ~35 hours a week. If each lead investor's trade can trigger 25 follow-on trades, that's $8.75M in trading fees, per week. Obviously, those are nice, blue sky numbers, but I think it's clear that in their best case, the biggest problem will be hiring enough qualified reviewers, and a thousand employees is a reasonable hiring target IMO.
  • notahacker 11y ago
    Using your numbers and assuming employees adequately qualified to assess investment plans tends to cost in the $2k/week range, you'd want to be pretty confident that lead investors typically were generating something approaching 25 follow on trades though...
  • discardorama 11y ago
    > that's $8.75M in trading fees, per week. But those fees go to the brokerage (Tradier?), not them, right?