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Welcome, Richard, Luke, & Syed

Molecule is growing! So far this year, we have added to our dev, customer success, and sales teams. We've done a quick Q&A with our additions to the sales team so you can get to know Richard Reedstrom, Luke 'Hawaiian-shirt' Kremer, and Syed Sohaib better. Stay tuned to meet the other new faces that have joined Molecule.

Richard Reedstrom

1.  Let’s start at the beginning. Where did you grow up? What led you to a career in sales?

I grew up here in Houston. I'm passionate about improving people's lives, and I've found that this bonds incredibly well with sales. Every day I help people end frustrating battles with old systems and methods by providing real solutions. I get to give people back hours of their lives. For me, it comes down to figuring out how we can make our customers' lives better.

2.  Why did you decide to join Molecule?

When I first heard about Molecule, it looked like an interesting company with a ton of potential. I had always wanted to work with a genuinely innovative/disruptive technology, and the more I found out about Molecule, the more I fell in love. The underlying technology, the company values, and the team culture resonated with me one hundred percent. I'm thrilled to be a part of such an awesome group of people doing incredible things.

3.  What is something that you’ve already learned about the industry or company that has surprised you?

Not every solution that claims to be cloud-based actually is a true cloud-based (multi-tenant) solution.

4.  For fun, what are your top three favorite apps?

1 Second Everyday, Tidal, and Audible.

5.  Since you’re in a sales position, let’s ask the obvious: what’s the most compelling reason why someone should want to buy Molecule?

Everything just works. We believe you shouldn’t have to fight with your software. Instead, Molecule works in harmony with you and your process.

Luke Kremer

1. Let’s start at the beginning. Where did you grow up? What led you to a career in sales?

I grew up in Papillion, a suburb of Omaha, Nebraska. I enjoy the relationship building and challenges that a sales person faces.

2. What is something that you’ve already learned about the industry or company that has surprised you?

I've been fascinated by renewable energy credit trading.

3. One of the things Molecule prides itself on is the time savings our software gives customers. More than one person has said that we’ve saved them two hours each day. If you were given two extra hours each day, how would you choose to spend them?

I’d have a tee time set two hours earlier each day; I could probably get a full 18 in before 7 pm.

4. For fun, what are your top three favorite apps?

Snapchat, Yelp, and Instagram.

5. Since you’re in a sales position, let’s ask the obvious: what’s the most compelling reason why someone should want to buy Molecule?

Molecule is future-proof software that looks and performs like it was made in 2019. We provide world-class service, free upgrades, and no extra implementation fees.

Syed Sohaib

1.  Let’s start at the beginning. Where did you grow up? What led you to a career in sales?

I grew up in Karachi, Pakistan. We moved to Stamford, Connecticut when I was in the middle of high school, which kickstarted my American dream. I graduated from the University of Connecticut (UConn) with an International Business Management degree and a focus in Finance. I took a marketing course titled ‘Professional Selling,’ and the final was to pitch a mock product and replace the incumbent provider. After the presentation my professor asked why I was not a marketing/sales major. According to him, I had a natural ability to be successful in a professional sales role. Long story short, I had an opportunity to join the sales team at ThomsonReuters, selling data solutions. I truly enjoyed the experience and challenge of bringing the right solutions to our clients/prospects. Ever since then I have been in sales and business development, and I enjoy every bit of it. Well, perhaps not CRMs!

2.  Why did you decide to join Molecule?

After trying my luck in different industries after ThomsonReuters, I wanted to get back into the financial services technology space. Molecule's solution "wow-ed" and made me excited about bringing it to market. For companies that have a need and utilize old technology for calculating P&L, position, and risk, Molecule is a game changer both from the ease of use and time-saving perspective.

3.  What is something that you’ve already learned about the industry or company that has surprised you?

The deep dive into the power market made me realize how challenging it is to learn, trade, and deal in this space.

4.  One of the things Molecule prides itself on is the time savings our software gives customers. More than one person has said that we’ve saved them two hours each day. If you were given two extra hours each day, how would you choose to spend them?

Spend more time with my family, learn a new language, restore and upgrade a Range Rover Defender 110, and go off the grid for a bit.

5.  For fun, what are your top three favorite apps?

I like puzzles, so Progress & Super Sharp. Proshot for some light photography and Flipboard to stay updated on tech, sports, travel, and autos, etc.

We are not finished either. Personally, I'm always recruiting for the sales team. Word on the wire is that we just hired a new developer in Spain! If you like what you have seen of Molecule so far, hit us up. We are always in the market for the best talent.

PeopleSales

What will I Save by using Molecule?

We frequently get questions asking how our pricing model works, especially as compared to other vendors in the ETRM/CTRM industry. In answering the question "What will I Save?", we first need to understand the pricing model for legacy (or on-premise) software.

Legacy Systems

Typically, with on-premise (or even single-tenant cloud) software like an ETRM, pricing has three components:

  • Perpetual License Fee
  • Annual Maintenance
  • Services (i.e., installation)

For a mid-size ETRM/CTRM customer, let's say the license fee is $1m on a 4-year contract. This is the most negotiable part of the contract because 1) it's not where the real money is paid and 2) the underlying variable cost (what it costs to send you the software) is essentially $0.

The annual maintenance fee, however, is where the margin gets real. Annual maintenance is often 20% of the standard pre-negotiation license fee. So, $200k/year in this example. This is less negotiable because this money pays for the development team. We've also heard of this as "the money that pays for new features and bug fixes," which makes our sales team go crazy.

Services – now here's where the major cost lies. On a greenfield ETRM/CTRM implementation, services can start at several hundred thousand dollars. However, implementations typically go into the millions, or even tens of millions (not because they're budgeted that way, but because they quietly end up ballooning in scope and time). The cost is unbounded – and from what we've seen, services is typically 75% of the total cost to the customer of an ETRM/CTRM installation. (CTRMCenter has an article on this, here). This is the case for numerous good and bad reasons. But, from our perspective, the most important reason is that because of a time-and-expense billing schedule, vendors are not incentivized to keep billing for services low.

Molecule

Molecule is different. In general, users pay a single package price, plus applicable sales tax. That's it. The price includes implementation, "paying for new features," the license fee, etc.

We have a minor fee schedule for a handful of things like new users, custom reports, and re-configuration of the application – but most of our customers never pay any additional fees.

Package prices are calculated, on purpose, to be roughly equivalent to the 4-year amortized license fee + maintenance fees of another ETRM/CTRM. This takes into account that license fees are often heavily discounted for smaller customers – but the point is, we're not aiming for the lowest license fees in the industry.

What users just don't pay for with Molecule is implementation. We take on the risk of new implementations knowing that the payoff for our customers (and for us) is enormous. We are aggressive about bounding the total cost and time of the implementation – because we are incentivized to do so. We do things like:

  • Assigning an expert project manager on Day 1
  • Avoiding implementation-related travel, if at all possible
  • Figuring out what "success" means for the customer, and keeping laser-focused on that goal
  • Building tooling for our Customer Success (support & implementation) team, so that they can get their job done more quickly

This is how we create the most value. We believe that implementation costs, in Six Sigma terms, are waste (muda, mura, and/or muri). Our customers don't benefit from paying tons of money for implementation, and neither does our enterprise value.

Summary

Basically, our customers pay industry-standard software fees – but end up saving 75% of the total cost of an ETRM/CTRM because we don't charge for implementation.

SalesFeatures

Top Questions Our Sales Team is Asked

Sometimes you want more information than what a company highlights on their website before requesting a demo and ending up in a marketing and sales funnel. We get it. We want to provide you with more details about Molecule and our platform so you feel good about sending in that demo request (which you can schedule easily right here)!

Here are common questions prospective customers ask our sales team:

TRADES SUPPORTED

Does Molecule support positions tradable on ICE and CME (e.g. lookback options, monthly options, etc.)?

We support pretty much everything on ICE, including lookbacks and monthly options. There has been nothing to date that we can’t support.

Molecule really shines with ICE, CME, on exchange trades, but I have off-exchange/ OTC trades. Can you handle these as well?

We can! Molecule has an awesome natural language processor that handles all OTC/ off-exchange trades in a simple interface. Just type in the search box the same way you would say the trade out loud, and hit enter. It books, position automatically updates, and VaR recalculates. It just works.

FTRs?

One of our favorites! Yes. Molecule connects to ISOs and provides position and settlements. Virtuals as well.

REPORTING

What kind of reports can you provide?

With every subscription, we have custom reports included in the package. We have a baked-in BI tool, and we work with you to set up interactive visual reports. These can be as complex as you want so that you can see the data you need – however you need to see data to make the best decisions.

How long will it take Molecule to calculate and finalize our end of day reporting? We have a specific time reports must be submitted. Can we specify a deadline in Molecule?

Molecule recalculates EOD with every new trade booked in near real time. It’s automatic, accurate, and almost like magic. Since it's ready whenever you want, there's no need to set a deadline.

What VaR models does Molecule run?

Monte Carlo and Delta Gamma.

Can we include our own asset models in the system?

Yes. The platform has an assets area where we can integrate pretty much anything. Some can be rather complex, but we haven’t run into something we can’t include yet. We enjoy working together to figure out each customer’s unique assets and how to integrate into Molecule in a smart way.

PLATFORM FUNCTIONALITY

Some of my team wants to stick with spreadsheets. Is that a problem?

No issue at all. Molecule’s API ties into your Excel sheets. This way you know everyone is on the same page and all information is automatic and accurate.

Can we view different traders’ activity from a management point of view?

There are a few ways you could set this up in Molecule. We can help you determine what best fits your worldview and implement in the right way.

Sometimes we want to roll out new trading strategies. Is there a way we can keep track of these?

Yes! Within Molecule you can set up tags for various strategies and view by tag.

IMPLEMENTATION

What are your implementation fees?

$0 - and that’s not a typo! We really charge $0 to get up and running with Molecule.

Really?

Yes. Really!

While on the subject of implementation… how long does your process take?

In most cases, 90 days or less.

SUPPORT & UPDATES

How do software updates work? I’m guessing there are additional fees?

We regularly (approximately every two weeks) push updates live for all of our customers. These costs are all included in our prices, so you don’t need to budget any extra for them… or wait years to see improvements.

Will we have to hire a consultant, developer, or budget for tickets?

We believe software should just work and have won customers on our awesome support team. If you need something, simply let us know. There are no additional costs, and most tickets we resolve in under an hour.

Molecule updates every two weeks? With such an aggressive release cycle, how do you all ensure a stable code environment?

We love this question! Let’s geek out. First, every code change is tested as part of a full automatic regression test, through our Continuous Integration suite. Then, we manually test every change. Next, we sanity-check the app by hand. Finally, we backtest a year’s worth of valuation data using our newest code, just to see if anything would have changed. Our biggest goal is no (bad) surprises. Our QA process is the most robust you’ll find in this space.

After all this, schedule your demo with us so we can answer your other questions.

Sales

Counting Down to ComRisk 2018

London’s calling. Again. Sameer and I are heading over to England for ComRisk 2018 at the end of the month. This is Molecule’s second year to attend and sponsor, and we’re excited to be back!

Commodities People organizes a series of events that are fantastic, educational, and networking opportunities for people working in commodities trading and risk.

You’ll have two opportunities to hear from Sameer at the event:

A panel discussion on the first day: CTRM technology – Adapting to a changing trading environment
Synopsis:

  • System implementation project management: Who is involved
  • Establishing clear objectives: What do you expect from the system? What sort of timelines are you looking at?
  • Critical steps of development, whether in-house or off-shelf products
  • Integration with the existing systems: Challenges
  • Examples of successful implementations: What were the key success factors?

A workshop on the third day: Market risk: Best practices

  • Evaluating Market Risk
    • What ingredients do you need?
    • What does it take to assemble those ingredients?
    • What does your company look like, when those ingredients are assembled?
  • Risk Metrics
    • What do people ask for?
    • What's trendy?
    • What are people actually using, and how?
  • How do people use a VaR?

We’re also always up for grabbing a bite and/or a pint, so let us know if you want to catch up. Email me at sales@molecule.io to set up a time to meet. Look forward to seeing you there!

EventsSales

You Buy Now!!!

Are you weighing options for implementing a new risk management platform for your energy trading operations in 2018? You may be considering developing proprietary software or looking at options available on the market. This means you face the build vs buy dilemma.

You may quickly feel like you are comparing apples to oranges, but we are here to help you understand the tradeoffs between these two options and decide which is best choice for your company.

Here are the most important five questions to ask when deciding whether your firm should build a risk management platform (or spreadsheets) or buy an existing software platform.

What are your technical requirements: Do you want a lot of customization? Do you need 99.9999% uptime?

Do you use proprietary valuation calculations that are different than commonly used ones? (PS…. YOU DON’T.) Do you need or want extremely customized software that accommodates 100% of your deals? Do you expect your software to perform like it’s been lean/six sigma mega-optimized for efficiency?

Yes? Your two best options are to either build your own software platform or buy one of our legacy competitors. Then hire consultants. Then be prepared to spend millions (sometimes even billions -- you know who you are).

98% good enough? You have lots of great out-of-the-box options! These may run on Amazon Web Services or other true-cloud solutions, which is considered best-in-class technology.

How quickly do you want to use the software?

When it comes to the time required to implement a new software solution, not all solutions are created equal. You could be up and running within 90 days, or you might be looking at a process spanning several years. Eek!!

2 years from now would be fine. Building would work. Or working with those costly consultants that will help set you up with a legacy vendor.

ASAP with as few hiccups and headaches as possible? Buy! You could be enjoying your new risk management platform in as few as 90 days.

How much budget can you allocate to this project?

Traditional IT-thought suggests that buying software is cheaper than building your own. However, this is not true if you buy one of the large, legacy vendor’s solution. It is not cheaper. There are some infamous implementations that cost over $20 million. 20 million eeks!!

We have about $20 million to invest. Yup - build or buying a legacy option could be the way to go.

Why do we have to pay to get setup on software we’re buying? We agree. There is a strong off-the-shelf option for you.

How big is your company?

The size of your company influences how many deals you track and how many people need access to the system. This increases the complexity of what needs to be tracked and what functionality is “enough” for your team.

Giant - Build or buy...

A Giant in Spirit but not in Numbers - Buy!

Does your IT department have extensive experience managing large, custom software projects?

Yes? Then your team could potentially build this out for you.

No? Don’t risk bad software. Buy a great option.

But, don’t buy legacy…

Honestly, if you decide that buying is the right path for you, don’t buy a legacy software product. You’ll end up hiring consultants anyway. Implementing their product, which inevitably will not meet 100% of your needs will cost just as much and take just as long (if not cost more and take longer) than simply building the perfect solution for your own organization. If you’re as unique as a snowflake and need a solution that reflects that, go be a snowflake and build your snowflake software.

Did you find out that you fall on the buying end of the spectrum? Get in touch with our team to discuss what options are available and would be best for your company.

Sales