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The SEC Publishes Report on Reg CF: “The number of crowdfunding offerings as well as the total amount of funding during the considered period was relatively modest”

Crowdfund Insider | | June 20, 2019

RegCF SEC report - The SEC Publishes Report on Reg CF: “The number of crowdfunding offerings as well as the total amount of funding during the considered period was relatively modest”The Securities and Exchange Commission (SEC) has published a statutory report on Regulation Crowdfunding commonly referenced as Reg CF. The mandated report must be forwarded to Congress three years after Reg CF rules became effective (May 2016).

Reg CF is the smallest of three federal “crowdfunding” exemptions allowing issuers to raise just $1.07 million from both accredited and non-accredited investors.

According to the report authors:

“the number of crowdfunding offerings, as well as the total amount of funding during the considered period, was relatively modest.”

The report tallies activity under Reg CF from May 2016 to December 31, 2018. At the end of the period, there were 45 active Portals and 9 Broker-Dealers which had participated in at least one Reg CF offering.

See:

Three platforms accounted for two-thirds of all initiated offerings and proceeds raised.

SEC: the number of #RegCF #crowdfunding offerings, as well as the total amount of funding during the considered period, was relatively modest Click to Tweet

According to the SEC:

  • Between May 16, 2016, and December 31, 2018, there were 1,351 offerings, excluding withdrawn filings, seeking in the aggregate a target, or minimum, amount of $94.3 million and a maximum amount of $775.9 million.
  • Of the completed offerings, approximately $107.9 million has been raised during the period.
  • 29 offerings reported raising at least $1.07 million from May 16, 2016, through December 31, 2018
  • The typical offering was small and raised less than the 12-month offering limit. The median target amount sought was $25,000 and the median maximum amount sought was $500,000.
  • Pointing to an external report, the SEC notes that the total number of investors in successful offerings increased from 77,558 in 2017 to 147,448 in 2018

Regarding the cost of launching a Reg CF campaign, the SEC states:

“According to the survey, the average issuer employed three people who collectively spent 241 hours to launch a crowdfunding campaign. Based on the survey estimates, the total cost of creating a campaign page, issuer disclosures, film, and video, and hiring a marketing firm, a lawyer, and an accountant amounts to approximately 5.3% of the amount raised.”

The most costly portion of the campaign preparation has to do with disclosure. This cost, on average, $6218 or a time allocation of 86 hours, according to the SEC.

See:  Architecting a New World: Investment Crowdfunding and Digital Assets

The report mentions that cost and complexity have impacted this sector of online capital formation. The authors point to previous SEC Small Business Forums where participants have made recommendations to improve Reg CF for the past few years but to date, no action has been taken on these recommendations.

The document includes some anecdotal feedback from crowdfunding platforms. For example, one platform states that “while few offerings reach the current limit, many issuers choose not to rely on the crowdfunding exemption because the limit is too low.”

Another intermediary thought the current cap was ok.

But several respondents stated that the offering limit should be higher, recommending limits from $5 million to $20 million.

Negative Selection Bias?

Importantly, the SEC report states:

“Some of these market participants stated that the existing offering limit may deter some high-quality, high-growth issuers with substantial financing needs from relying on Regulation Crowdfunding, thereby lowering the average quality of issuers in the Regulation Crowdfunding market. One intermediary respondent stated that raising the offering limit could attract more issuers and expand opportunities for non-accredited investors.”

Many platforms have crafted a workaround to bypass constricted Reg CF rules regarding investment caps and investors limitations.

It is now commonplace to run two concurrent offerings: a Reg CF and Reg D side-by-side for accredited investors. But some intermediaries told the SEC this was “unnecessarily confusing to investors and more costly to issuers.”

The report says that no enforcement actions have been taken against Reg CF issuers by the SEC but FINRA has taken 4 separate actions against a funding portal and NASAA says a small number of actions have been taken by state regulators.

See:  OurCrowd Double IPO Success Provides Crowdfunding Validation

A fair amount of review is given to the development of (or lack of) a secondary market for Reg CF issued securities. To date, no platform has been able to successfully maintain a marketplace for securities as the size of the market is simply too small and affiliated costs too high.

The important concept of a Special Purpose Vehicle (SPV) for aggregating investors into a single entity is addressed. The report cites the potential investor protections an SPV structure could provide. An SPV could facilitate a vehicle where “small investors [could] invest alongside a sophisticated lead investor who may negotiate better terms, protect against dilution by negotiating during subsequent financings, mentor the company, and represent smaller investors on the board.”

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NCFA Jan 2018 resize - The SEC Publishes Report on Reg CF: “The number of crowdfunding offerings as well as the total amount of funding during the considered period was relatively modest” The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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Hong Kong being pulled into the 21st Century — digital banking licenses finally arrive

Schulte Research | Paul Schulte | June 17, 2019

global network and points of presence maps - The SEC Publishes Report on Reg CF: “The number of crowdfunding offerings as well as the total amount of funding during the considered period was relatively modest”Digital banking finally arrives in HK --all in one go!

Be careful what you wish for — you might get it.  Hong Kong People have been kvetching for years about the poor quality of banking services. Now, they will have a deluge of ultra-efficient and essentially free new services. These services will offer strictly online banking services without branches and ALL of them have very deep pockets. The first batch below, which I will enumerate in a moment, have capital to burn of about USD 250 million.

This can go a long way in eroding the highly profitable cartel of HSBC and Hang Seng Bank.  Hang Seng Bank has consistently had among the highest ROE globally north of 20-21%. And its revenue per customer has been among the world’s highest as well. HSBC owns more than 40% of HSB, so it has been a cash cow for the bank. Hong Kong is really the center of profitability for HSBC, since its ROE for commonwealth countries is the single digits and it has basically given up on the US financial market.  It’s European business, like all Euro banking franchises, is in the doldrums.

See:  FINTECH FRIDAY$ (EP.11-Sep 28): How Amazon Bank is Dominating and Risks of a Digital Bifurcated World with Paul Schulte, Founder of Schulte Research

Before we delve into the new guys on the block, lets focus on two issues.  Hong Kong is desperately behind on all of this digital banking.  Let’s just say that the HKMA has been ultra-cautious to not rock the boat for incumbent banks. Hong Kong has been an example where the regulator has caused some degree of asphyxiation of the environment due to its cozy relationship with the status quo players. Banks like Goldman Sachs have had digital bank Marcus for many years. JP Morgan has had Finn for some time.  Others like BNP, ING, Santander all have had digital banks for many years.  And of course, China is a banking system which no longer has cash, credit cards or checks. Hong Kong still runs on checks and taxis only accept cash.  This Big Bang we saw in April and May will be very painful for the incumbents.

HK digital bank licenses April 2019 - The SEC Publishes Report on Reg CF: “The number of crowdfunding offerings as well as the total amount of funding during the considered period was relatively modest”

The second issue is traditional telecom services have traditionally gone through telecom trunks. Hong Kong’s vital importance to the region has been little appreciated.  It is the nerve center for much of the undersea telecom services for Asia Pacific — as much as 90%. HSBC, for instance, has relied on this for many decades to connect its vast commonwealth system.  As China decides to go its own way and disconnect from the Western systems (like Google and WhatsApp) and create a self-sustaining systems based on Alibaba and Tencent. As Hong Kong slowly morphs into a Chinese city, it is quite certain that China will not wish to remain vulnerable to a cable system open to hacking by western intel services. In this way, HSBC is very much tied to the fate of the “Five Eyes” and can no longer say its future lies in being an Asian bank. The same goes for Standard Chartered.

Given that all eight of the new digital bank entrants are either pure Chinese or have important PRC anchor tenants, this sudden burst of highly adept and highly competitive entities will surely drive down margins for all banking services within 2–3 years. This reminds me of when the PRC investment banks came into Hong Kong. Many people said they could not compete outside of China.  They said they could not go up against polished investment banks with long histories.  (I worked inside CCB Intl and from the time I got there to time I left two years later, they had gained massive experience and it was lead manager on the highly successful CITIC Securities IPO.  Within a few years of the investment banks arriving, commissions fell 50% and banking fees fell more than 50%. I predict the same will happen for traditional banking services, but it is likely to happen faster.

See:  Singapore topples United States as world’s most competitive economy

Why will traditional banking fees fall faster with the NEW PRC digital banks than when PRC investment banks caused commissions and fees to collapse in 2010-2014? Because Alibaba and Tencent, among others, invented digital banking many years ago. They have mastered online asset gathering, online SME lending, online robo-advisory, online FX transfers, online everything. And it is glued onto a cell phone that is fully integrated into the lifestyle of 1.4 billion people in ways that Hong Kong people could hardly dream of.  Banks are essentially nowhere in understanding how financial choices are a mere subset of a person’s lifestyle choices.

HK digital bank licenses May 2019 - The SEC Publishes Report on Reg CF: “The number of crowdfunding offerings as well as the total amount of funding during the considered period was relatively modest”

The first batch of online banking services below are a smattering of Hong Kong and western entities, but they are all basically Chinese entities.  The second group announced last week are all of the major players in Asia pacific lifestyle and financial services. Let’s not forget, for instance, that Alibaba is now connected to Pay TM, Lazada, Tokopedia. And Tencent can leverage WeChat in HK online activity. This can render much of the local banking services irrelevant. I was doing some consulting three years ago with some of these incumbents and was begging them to split off online banking services with a separate entity. I also wore out my welcome with the HKMA and told them to force a big bank in digital services for the good of the local incumbents. Nothing happened for years. Now, ALL of the most adept online banking powerhouses — hungry, entrepreneurial, savvy and well funded — have come into Hong Kong virtually on the same day. God help the incumbents.  They have no one but themselves to blame for not being prepared.

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paul schulte2 - The SEC Publishes Report on Reg CF: “The number of crowdfunding offerings as well as the total amount of funding during the considered period was relatively modest”Paul Schulte, Schulte Research
Founder and Managing Editor
Hong Kong

https://linkedin.com/in/paul-schulte/

Paul Schulte's roles in banking & financial services in the past 30 years include equity & fixed income research (buy & sell sides) in emerging markets. In recent years, technology has evolved rapidly to challenge all facets of financial services his core belief is: Liquidity & credit are everything; get bank liquidity & solvency right and the rest follows. Aside from being the founder & editor of Schulte Research, he has taught for 18 years IN MBA programs: Tufts, HK UST, HKU, LMU Hilton School in LA & SUSS in Singapore. He has also worked for the Number 1 investment bank from Switzerland, US, UK, Japan, PRC & Holland starting in 1990. Paul has been a source for the WSJ, NYT, Bloomberg, Nikkei, FT, Economist, Barron’s & Forbes. His clients include some of the largest sovereign, pension, mutual and hedge funds globally. He served as an advisor to IOSCO, ASIC, HKMA, Malaysian SFC, PRC PBOC & CBRC, Thai SEC & Indonesian OJK and Bank Indonesia.


NCFA Jan 2018 resize - The SEC Publishes Report on Reg CF: “The number of crowdfunding offerings as well as the total amount of funding during the considered period was relatively modest” The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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EY Global FinTech Adoption Index finds over half (64%) of global consumers use FinTech

EY Canada | John La Place | June 4, 2019

global fintech index EY - The SEC Publishes Report on Reg CF: “The number of crowdfunding offerings as well as the total amount of funding during the considered period was relatively modest”

  • US consumer adoption has grown 29.5% in the last four years

  • 96% of global consumers are aware of at least one money transfer and payment FinTech service

  • One-quarter of small and medium-sized enterprises use FinTech, with a 23% adoption rate in the US

Financial technology (FinTech) adoption among consumers has nearly doubled over the past 18 months, according to the latest EY Global FinTech Adoption Index, and the adoption rate is growing faster than anticipated. Globally, 64% of digitally-active consumers across 27 markets use FinTech, and awareness is even higher.

This year, the EY organization added the first-ever Small and Medium-Sized Enterprise (SME) FinTech Adoption Index given FinTech’s expansion beyond consumers. EY member firms surveyed more than 1,000 organizations in five countries and found that one-quarter of organizations have used at least one FinTech across the following four categories in the past six months: banking and payments, financial management, financing and insurance.

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“FinTech organizations are no longer fringe disruptors and have grown into sophisticated competitors,” said Matt Hatch, Partner, Ernst & Young LLP and the EY Americas FinTech Leader.

“Now, financial incumbents are taking note and offering FinTech solutions, forming ecosystems that are replacing traditional partnerships. We fully expect this trend to accelerate as nonfinancial companies enter the space and leverage technology and innovation to provide frictionless, transparent and highly-personalized services.”

What’s driving adoption?

EY firms interviewed more than 27,000 people to better understand how consumers are interacting with FinTech, and the results are promising. Based on the survey results, money transfer and payments services continue to be the most popular in both awareness and adoption, as only 4% of global consumers are unaware of at least one money transfer and payment FinTech service. Adoption rates continue to lag in the US, while Europe’s investments in open banking have contributed to higher adoption rates in that region.

SMEs are further behind in their adoption journey compared to consumers. When an SME uses FinTech services, they have essentially selected this company as an approved vendor, so 25% is considered high, and the adoption rate is expected to climb. Over one-fifth (22%) of non-adopters already use FinTech services in three of the four categories defined in the survey methodology, which means they are on the verge of becoming FinTech adopters. By this measure, the global adoption rate could surge from 25% to 64%.

The impact of trust on FinTech adoption

The survey indicates that trust plays a large role in FinTech adoption, as non-adopters choose to remain with traditional financial services because they trust them more than FinTech challengers. Many FinTech propositions rely on data sharing, which can present a barrier for adoption.

See:  #FFCON19 talked about how to build trust in the 21st century

Nearly half (46%) of adopters are comfortable with their primary banking institution sharing their financial data with other organizations if it means better offers on products or services, but less than a quarter (23%) would share data with nonfinancial services companies.

This trust gap creates a huge opportunity for financial institutions and FinTech challengers, as 31% of adopters say they are willing to share data with FinTech challengers. Although nonfinancial services companies might lead innovation, they don’t have full confidence when it comes to providing financial services.

Still, 68% of surveyed consumers are willing to consider a financial services product offered by a nonfinancial services company.

The SME FinTech Adoption Index found similar trends. SME FinTech adopters are also more open to sharing data with FinTech companies (89%) and other financial services companies (70%) over nonfinancial services companies (63%).

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NCFA Jan 2018 resize - The SEC Publishes Report on Reg CF: “The number of crowdfunding offerings as well as the total amount of funding during the considered period was relatively modest” The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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ICOs can work for companies, Bank of Canada paper finds

Investment Executive | James Langton | May 7, 2019

bank of canada 2 - The SEC Publishes Report on Reg CF: “The number of crowdfunding offerings as well as the total amount of funding during the considered period was relatively modest”Initial coin offerings (ICOs) can be an effective approach to start-up financing, argues a paper from the Bank of Canada.

A new staff working paper from the central bank examined the ICO phenomenon that has emerged in recent years as a way for fledgling companies to secure early-stage financing.

While the approach has attracted a fair amount of negative attention amid reports of failed and fraudulent offerings, the paper found that it can actually be the ideal way to fund a company in certain circumstances.

Specifically, the paper looked at how the ICO structure impacts the incentives of entrepreneurs, compared with traditional debt and equity financing, and concluded that it can be the better way to finance a company.

“Our results show that ICOs can have beneficial economic properties when compared with conventional financing strategies,” it said. “For certain projects, ICO financing generates a higher net present value than conventional modes of financing and is sometimes the only profitable form of financing.”

According to the paper, the essential factor is that returns to ICO investors be based on a project’s sales revenue, rather than profits.

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“This can make things better in situations where effort by the entrepreneur leads to cost savings rather than higher sales,” it noted, as the benefits of cost savings are entirely retained by the company.

At the same time, the paper also highlighted a couple of unique risks to ICOs, including the risk of market manipulation. “Token ownership needs to be sufficiently widely dispersed to avoid [that risk],” the paper said.

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Bank of Canada Staff Report:  'Entrepreneurial Incentives and the Role of ICOs


NCFA Jan 2018 resize - The SEC Publishes Report on Reg CF: “The number of crowdfunding offerings as well as the total amount of funding during the considered period was relatively modest” The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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Yahoo Finance | VeChain Release | June 25, 2019 BEIJING, June 25, 2019 /PRNewswire/ -- On June 25, in combination with Walmart China, China Chain-Store & Franchise Association (CCFA), PwC, Inner Mongolia Kerchin Co., Ltd., and VeChain, the Walmart China Blockchain Traceability Platform, built on the VeChainThor Blockchain, was announced at the 2019 China Products Safety Publicity Week Traceability System Construction Seminar. This seminar was jointly organized by Walmart China and the CCFA in Beijing. The announcement of the Walmart China Blockchain Traceability Platform came with the introduction to the first batch of 23 product lines that have been tested and launched on the Platform. The Platform is expected to scale by another 100 product lines by the end of the year covering more than 10 product categories including fresh meat product, rice, mushrooms, cooking oil, etc. It is expected that the Walmart China's  traceability system will see traceable fresh meat account for 50% of the total sales of packaged fresh meat, traceable vegetables will account for 40% of the total sales of packaged vegetables, traceable seafood will account for 12.5% of the total sales of seafood by the end of 2020. See:  Q&A: Walmart’s Frank Yiannas on the use ...
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Crowdfund Insider | JD Alois | June 20, 2019 The Securities and Exchange Commission (SEC) has published a statutory report on Regulation Crowdfunding commonly referenced as Reg CF. The mandated report must be forwarded to Congress three years after Reg CF rules became effective (May 2016). Reg CF is the smallest of three federal “crowdfunding” exemptions allowing issuers to raise just $1.07 million from both accredited and non-accredited investors. According to the report authors: “the number of crowdfunding offerings, as well as the total amount of funding during the considered period, was relatively modest.” The report tallies activity under Reg CF from May 2016 to December 31, 2018. At the end of the period, there were 45 active Portals and 9 Broker-Dealers which had participated in at least one Reg CF offering. See: $5 million Equity crowdfunding extended to private companies Early-stage Investing – The Public gets a Seat at the Table Three platforms accounted for two-thirds of all initiated offerings and proceeds raised. SEC: the number of #RegCF #crowdfunding offerings, as well as the total amount of funding during the considered period, was relatively modest Click to Tweet According to the SEC: Between May 16, 2016, and December 31, ...
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Chambers Pivot Industries | Greg Chambers | June 20, 2019 "All I need is an investor, and I’m ready to go," she says. I'm sitting in front of a passionate entrepreneur who knows I've successfully raised millions of dollars for various businesses. After hearing her story, what I'm about to say won't be what she wants to hear, but it's true. Funding isn't her problem. There's more money out looking for a home than there are good ideas to fund. The problem, I tell her, is she hasn't decided if she wants to build a company or master the growing seed and startup capital environment. Lessons from the past I was in her seat in the late 1990s shopping my big idea from investor to investor. Eventually unsuccessful, I was forced to abandon my startup and find a job. I took two big lessons from that experience. One is that if I wanted to get a company off the ground, I needed to get much better at selling a vision to investors. Second, based on the questions the investors were asking, I needed far more evidence from customers that my idea was the right one before they’d invest. Years later, ...
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Luge Capital | Karim Gillani | June 2019 Intro:  NCFA Fintech Confidential spoke with some of Canada’s experienced fintech investors, on their background, how Canada has evolved, what we should be doing, advice to fintech founders and what keeps them awake at night.  This is part 1 of a 4 part series.   What is your background, and how did you come to co-found Luge Capital? Karim:  My background is in fintech, mobile tech, engineering, finance and strategy. Prior to Luge, I was at PayPal, leading M&A activities in Canada. I joined PayPal through its $890M acquisition of Xoom, a renowned cross-border remittance company, where I started the Corporate Development practice. I have an Engineering degree from the University of Waterloo, a Master of Finance degree from the University of London and a Master of Laws from the University of Toronto. Luge Capital was the byproduct of highly motivated LPs, and a recognition that fintech venture capital needed a kickstart at the early stages. David Nault and I co-founded Luge in early 2018 with a new model to seek out entrepreneurs in the US and Canada that not only had a drive to take over the world, but also built their ...
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luge capital - The SEC Publishes Report on Reg CF: “The number of crowdfunding offerings as well as the total amount of funding during the considered period was relatively modest”
CDL Team | June 18, 2019 The Libra Association announces a new initiative with the goal of increasing access to financial services and fostering financial inclusion around the world TORONTO, CANADA – Today, Creative Destruction Lab (CDL) – a not-for-profit seed-stage startup program – announces that it will be a Founding Partner of the Libra Association. CDL is keen to contribute to the success of the Libra initiative as the sole Canadian organization and academic institution in the Libra Association at present. The Libra Association will create Libra, a simple global currency and financial infrastructure that can empower billions of people. Libra will be built on a secure, scalable, and reliable blockchain; and it will be backed by a reserve of assets designed to give it intrinsic value. The Libra Association will govern the infrastructure and manage and evolve this new ecosystem. Libra will enable developers and businesses to build inclusive new financial service products for people around the world. See:  Facebook’s Libra Cryptocurrency: Everything We Know At this time, CDL is the sole academic Founding Partner of the Libra Association. The initial group of organizations that will work together on finalizing the association’s charter include: Payments: Mastercard, PayPal, PayU ...
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PC Mag | Rob Marvin | June 18, 2019 Facebook's Libra Cryptocurrency: Everything We Know Facebook's big blockchain play, consisting of the Libra coin, the nonprofit Libra Foundation, and Facebook's Calibra wallet, will create a crypto-based payments ecosystem across Facebook, Messenger, WhatsApp, and beyond. Facebook's long-rumored cryptocurrency finally got its big debut, and it's called Libra after all. Facebook today released a lengthy white paper, along with a post from Mark Zuckerberg and another from VP of blockchain David Marcus, announcing the ambitious crypto initiative and all that comes with it. The open-source Libra cryptocurrency and blockchain will be governed by the nonprofit Libra Association, while a new Facebook-owned subsidiary called Calibra will release a wallet for Libra tokens and ultimately other banking and finance products—a move that could turn Facebook into a financial services giant in addition to a social and advertising one. See:  Facebook’s Cryptocurrency: Great Idea, Wrong Company While the public launch of Libra won't happen until the first half of 2020, the developer testnet of the Libra blockchain is live today. There will also be a new programming language called Move for developers to build distributed applications atop the Libra blockchain, though Facebook said neither itself ...
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3iQ and Mavennet | Fred Pye and Kesem Frank | June 18, 2019 Stablecoins are now a necessary step to mass adoption of cryptocurrencies, as proven by the way they’ve been used to hedge the massive volatility of the market over the past couple of years. Their simple premise enables the seamless pairing of crypto-to-fiat pegged cryptocurrency. It might sound overly simplistic, but this straightforward innovation has spurred the growth of a new crypto asset class that measures in billions of dollars in aggregate market cap (e.g. Tether, USD Coin, TrueUSD, Paxos and Gemini Dollar). As much as this asset class is still gaining momentum driven by the current and common use case, the potential of stablecoins goes well beyond the tactical value of a trading tool. Stablecoins are strategically important because they represent a bridge between legacy fiat-based systems and the new digital and decentralized currency underpinnings we collectively call “blockchain.” The dream isn’t necessarily a prediction or extension of the purist’s vision   Bitcoin - blockchain’s earliest network - was born from tumultuous years in the traditional financial system. These were years defined by mistrust; not just towards the people at the helm of the financial system, but ...
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stablecoins  - The SEC Publishes Report on Reg CF: “The number of crowdfunding offerings as well as the total amount of funding during the considered period was relatively modest”
CNBC | Kate Rooney and Hugh Son | June 10, 2019 Mobility giant Uber is looking to accelerate the creation of financial products with a new fintech outpost in New York, according to people with knowledge of the plan. The ride-hailing company is aiming to hire several dozen engineers and product managers this year, and the New York team could eventually exceed 100 workers, said the people, who declined to be identified speaking about Uber’s plans. Uber, fresh from its IPO last month, is looking to tap New York’s talent pool, which is deeper when it comes to fintech and bank workers than its hometown of San Francisco. By building out its financial ecosystem, the company can increase its lead over rivals like Lyft. The efforts are likely to be focused on ways to increase engagement and loyalty to the Uber platform, according to people who attended a recruitment event earlier this year. Payments chief Peter Hazlehurst and top engineer Johnie Lee spoke at the event, held at Uber’s New York offices, the people said. There are many possible payment and lending innovations Uber could come up with: It has 93 million active users globally, most of whom use linked ...
Read More
Dara Khosrowshahi CEO uber tech - The SEC Publishes Report on Reg CF: “The number of crowdfunding offerings as well as the total amount of funding during the considered period was relatively modest”
Schulte Research | Paul Schulte | June 17, 2019 Digital banking finally arrives in HK --all in one go! Be careful what you wish for — you might get it.  Hong Kong People have been kvetching for years about the poor quality of banking services. Now, they will have a deluge of ultra-efficient and essentially free new services. These services will offer strictly online banking services without branches and ALL of them have very deep pockets. The first batch below, which I will enumerate in a moment, have capital to burn of about USD 250 million. This can go a long way in eroding the highly profitable cartel of HSBC and Hang Seng Bank.  Hang Seng Bank has consistently had among the highest ROE globally north of 20-21%. And its revenue per customer has been among the world’s highest as well. HSBC owns more than 40% of HSB, so it has been a cash cow for the bank. Hong Kong is really the center of profitability for HSBC, since its ROE for commonwealth countries is the single digits and it has basically given up on the US financial market.  It’s European business, like all Euro banking franchises, is in the ...
Read More
global network and points of presence maps - The SEC Publishes Report on Reg CF: “The number of crowdfunding offerings as well as the total amount of funding during the considered period was relatively modest”
Forbes | Enrique Dans | June 17, 2019 All the signs are that Facebook is about to launch its cryptocurrency on June 18, a project known internally as Libra, and that soon, apparently, we will all be using. So what are the implications of a company with 2.4 billion users launching its own currency? Strategically, the movement makes sense for Facebook: at a time when many question the its dominance of social networks and when a majority of its own shareholders say they want to see the back of Mark Zuckerberg, the company announces a very ambitious project of universal appeal giving it a central role in the world economy, in the wake of innumerable cryptocurrency projects of dubious legality, irresponsibly speculative and wasteful in terms of energy, aimed among others at people in countries with unstable currencies or limited banking penetration. As Jack Dorsey has said, this maybe the perfect moment to create a universal currency for the Internet era, reflecting the trend toward a universalization of the world. However, what is less clear is whether this currency should be in the hands of Facebook. See:  FaceCoin: Here’s What Facebook Could Build In Blockchain And Cryptocurrency Technically, the project ...
Read More
mark Z. facebook - The SEC Publishes Report on Reg CF: “The number of crowdfunding offerings as well as the total amount of funding during the considered period was relatively modest”

 

What bankers need to know about the mobile generation

The Economist - Special Banking Focus | May 2, 2019

mobile demanding customers - The SEC Publishes Report on Reg CF: “The number of crowdfunding offerings as well as the total amount of funding during the considered period was relatively modest”Younger customers have high expectations for speedy, convenient service

IF YOU TURN 18 this year, you are younger than Amazon and Google. You turned three with Facebook’s arrival, four with YouTube, five with Spotify, six with the iPhone and eight with WhatsApp. If you are at the upper end of the 18-30 age range considered in this special report, you will remember a time before mobile internet, but not a time before mobile phones. If you are anywhere in that range, you use your mobile to read, chat and play, stream music and videos, hail taxis, order food, and search for dates and jobs.

You use mobile phones to manage your money, too. Research last year by Raddon, a consultancy, found that 85% of American millennials (those born between 1981 and 1996) used mobile banking, and predicted that the share would be higher still for Gen Z (born after 1996). The main reason people choose a bank is convenience, the consultancy says. For older people that means a nearby branch; for younger ones it means an excellent app.

You have cooled on cash. Half of American millennials use peer-to-peer payment services such as Venmo or Zelle at least once a week. In 2017 Bain & Company, another consultancy, asked people in 17 countries which they would miss more for a day: their phone or their wallet. Everywhere except Japan and Malaysia, the share of under-25s who would miss their phone more was above 70% (see chart).

See: 

You are a demanding customer, with expectations of speedy, convenient service that have been set by Uber and Amazon Prime. You are generally willing to grant companies access to your data, but want something in return. You let Google Maps track your location to help you get where you are going; you like Netflix using your viewing habits for recommendations.

In many developed countries, tuition fees mean you have much more debt than previous generations did. Soaring property prices have made it harder for you to become a homeowner. Growing up in the aftermath of the financial crisis has left you cautious about loans. According to bankrate.com, a comparison service, just one in three American millennials has a credit or debit card, a much lower share than for previous generations at the same age. All this means banks find it hard to make money from you.

Continue to the full article --> here

 


NCFA Jan 2018 resize - The SEC Publishes Report on Reg CF: “The number of crowdfunding offerings as well as the total amount of funding during the considered period was relatively modest” The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

Latest news - The SEC Publishes Report on Reg CF: “The number of crowdfunding offerings as well as the total amount of funding during the considered period was relatively modest”FF Logo 400 v3 - The SEC Publishes Report on Reg CF: “The number of crowdfunding offerings as well as the total amount of funding during the considered period was relatively modest”community social impact - The SEC Publishes Report on Reg CF: “The number of crowdfunding offerings as well as the total amount of funding during the considered period was relatively modest”
NCFA Summer Kickoff Event Jul 11 banner resize - The SEC Publishes Report on Reg CF: “The number of crowdfunding offerings as well as the total amount of funding during the considered period was relatively modest”

Yahoo Finance | VeChain Release | June 25, 2019 BEIJING, June 25, 2019 /PRNewswire/ -- On June 25, in combination with Walmart China, China Chain-Store & Franchise Association (CCFA), PwC, Inner Mongolia Kerchin Co., Ltd., and VeChain, the Walmart China Blockchain Traceability Platform, built on the VeChainThor Blockchain, was announced at the 2019 China Products Safety Publicity Week Traceability System Construction Seminar. This seminar was jointly organized by Walmart China and the CCFA in Beijing. The announcement of the Walmart China Blockchain Traceability Platform came with the introduction to the first batch of 23 product lines that have been tested and launched on the Platform. The Platform is expected to scale by another 100 product lines by the end of the year covering more than 10 product categories including fresh meat product, rice, mushrooms, cooking oil, etc. It is expected that the Walmart China's  traceability system will see traceable fresh meat account for 50% of the total sales of packaged fresh meat, traceable vegetables will account for 40% of the total sales of packaged vegetables, traceable seafood will account for 12.5% of the total sales of seafood by the end of 2020. See:  Q&A: Walmart’s Frank Yiannas on the use ...
Read More
walmart and vechain food safety - The SEC Publishes Report on Reg CF: “The number of crowdfunding offerings as well as the total amount of funding during the considered period was relatively modest”
Crowdfund Insider | JD Alois | June 20, 2019 The Securities and Exchange Commission (SEC) has published a statutory report on Regulation Crowdfunding commonly referenced as Reg CF. The mandated report must be forwarded to Congress three years after Reg CF rules became effective (May 2016). Reg CF is the smallest of three federal “crowdfunding” exemptions allowing issuers to raise just $1.07 million from both accredited and non-accredited investors. According to the report authors: “the number of crowdfunding offerings, as well as the total amount of funding during the considered period, was relatively modest.” The report tallies activity under Reg CF from May 2016 to December 31, 2018. At the end of the period, there were 45 active Portals and 9 Broker-Dealers which had participated in at least one Reg CF offering. See: $5 million Equity crowdfunding extended to private companies Early-stage Investing – The Public gets a Seat at the Table Three platforms accounted for two-thirds of all initiated offerings and proceeds raised. SEC: the number of #RegCF #crowdfunding offerings, as well as the total amount of funding during the considered period, was relatively modest Click to Tweet According to the SEC: Between May 16, 2016, and December 31, ...
Read More
RegCF SEC report - The SEC Publishes Report on Reg CF: “The number of crowdfunding offerings as well as the total amount of funding during the considered period was relatively modest”
Chambers Pivot Industries | Greg Chambers | June 20, 2019 "All I need is an investor, and I’m ready to go," she says. I'm sitting in front of a passionate entrepreneur who knows I've successfully raised millions of dollars for various businesses. After hearing her story, what I'm about to say won't be what she wants to hear, but it's true. Funding isn't her problem. There's more money out looking for a home than there are good ideas to fund. The problem, I tell her, is she hasn't decided if she wants to build a company or master the growing seed and startup capital environment. Lessons from the past I was in her seat in the late 1990s shopping my big idea from investor to investor. Eventually unsuccessful, I was forced to abandon my startup and find a job. I took two big lessons from that experience. One is that if I wanted to get a company off the ground, I needed to get much better at selling a vision to investors. Second, based on the questions the investors were asking, I needed far more evidence from customers that my idea was the right one before they’d invest. Years later, ...
Read More
hunter to prey - The SEC Publishes Report on Reg CF: “The number of crowdfunding offerings as well as the total amount of funding during the considered period was relatively modest”
Luge Capital | Karim Gillani | June 2019 Intro:  NCFA Fintech Confidential spoke with some of Canada’s experienced fintech investors, on their background, how Canada has evolved, what we should be doing, advice to fintech founders and what keeps them awake at night.  This is part 1 of a 4 part series.   What is your background, and how did you come to co-found Luge Capital? Karim:  My background is in fintech, mobile tech, engineering, finance and strategy. Prior to Luge, I was at PayPal, leading M&A activities in Canada. I joined PayPal through its $890M acquisition of Xoom, a renowned cross-border remittance company, where I started the Corporate Development practice. I have an Engineering degree from the University of Waterloo, a Master of Finance degree from the University of London and a Master of Laws from the University of Toronto. Luge Capital was the byproduct of highly motivated LPs, and a recognition that fintech venture capital needed a kickstart at the early stages. David Nault and I co-founded Luge in early 2018 with a new model to seek out entrepreneurs in the US and Canada that not only had a drive to take over the world, but also built their ...
Read More
luge capital - The SEC Publishes Report on Reg CF: “The number of crowdfunding offerings as well as the total amount of funding during the considered period was relatively modest”
CDL Team | June 18, 2019 The Libra Association announces a new initiative with the goal of increasing access to financial services and fostering financial inclusion around the world TORONTO, CANADA – Today, Creative Destruction Lab (CDL) – a not-for-profit seed-stage startup program – announces that it will be a Founding Partner of the Libra Association. CDL is keen to contribute to the success of the Libra initiative as the sole Canadian organization and academic institution in the Libra Association at present. The Libra Association will create Libra, a simple global currency and financial infrastructure that can empower billions of people. Libra will be built on a secure, scalable, and reliable blockchain; and it will be backed by a reserve of assets designed to give it intrinsic value. The Libra Association will govern the infrastructure and manage and evolve this new ecosystem. Libra will enable developers and businesses to build inclusive new financial service products for people around the world. See:  Facebook’s Libra Cryptocurrency: Everything We Know At this time, CDL is the sole academic Founding Partner of the Libra Association. The initial group of organizations that will work together on finalizing the association’s charter include: Payments: Mastercard, PayPal, PayU ...
Read More
CDL libra - The SEC Publishes Report on Reg CF: “The number of crowdfunding offerings as well as the total amount of funding during the considered period was relatively modest”
PC Mag | Rob Marvin | June 18, 2019 Facebook's Libra Cryptocurrency: Everything We Know Facebook's big blockchain play, consisting of the Libra coin, the nonprofit Libra Foundation, and Facebook's Calibra wallet, will create a crypto-based payments ecosystem across Facebook, Messenger, WhatsApp, and beyond. Facebook's long-rumored cryptocurrency finally got its big debut, and it's called Libra after all. Facebook today released a lengthy white paper, along with a post from Mark Zuckerberg and another from VP of blockchain David Marcus, announcing the ambitious crypto initiative and all that comes with it. The open-source Libra cryptocurrency and blockchain will be governed by the nonprofit Libra Association, while a new Facebook-owned subsidiary called Calibra will release a wallet for Libra tokens and ultimately other banking and finance products—a move that could turn Facebook into a financial services giant in addition to a social and advertising one. See:  Facebook’s Cryptocurrency: Great Idea, Wrong Company While the public launch of Libra won't happen until the first half of 2020, the developer testnet of the Libra blockchain is live today. There will also be a new programming language called Move for developers to build distributed applications atop the Libra blockchain, though Facebook said neither itself ...
Read More
facebook launches libra - The SEC Publishes Report on Reg CF: “The number of crowdfunding offerings as well as the total amount of funding during the considered period was relatively modest”
3iQ and Mavennet | Fred Pye and Kesem Frank | June 18, 2019 Stablecoins are now a necessary step to mass adoption of cryptocurrencies, as proven by the way they’ve been used to hedge the massive volatility of the market over the past couple of years. Their simple premise enables the seamless pairing of crypto-to-fiat pegged cryptocurrency. It might sound overly simplistic, but this straightforward innovation has spurred the growth of a new crypto asset class that measures in billions of dollars in aggregate market cap (e.g. Tether, USD Coin, TrueUSD, Paxos and Gemini Dollar). As much as this asset class is still gaining momentum driven by the current and common use case, the potential of stablecoins goes well beyond the tactical value of a trading tool. Stablecoins are strategically important because they represent a bridge between legacy fiat-based systems and the new digital and decentralized currency underpinnings we collectively call “blockchain.” The dream isn’t necessarily a prediction or extension of the purist’s vision   Bitcoin - blockchain’s earliest network - was born from tumultuous years in the traditional financial system. These were years defined by mistrust; not just towards the people at the helm of the financial system, but ...
Read More
stablecoins  - The SEC Publishes Report on Reg CF: “The number of crowdfunding offerings as well as the total amount of funding during the considered period was relatively modest”
CNBC | Kate Rooney and Hugh Son | June 10, 2019 Mobility giant Uber is looking to accelerate the creation of financial products with a new fintech outpost in New York, according to people with knowledge of the plan. The ride-hailing company is aiming to hire several dozen engineers and product managers this year, and the New York team could eventually exceed 100 workers, said the people, who declined to be identified speaking about Uber’s plans. Uber, fresh from its IPO last month, is looking to tap New York’s talent pool, which is deeper when it comes to fintech and bank workers than its hometown of San Francisco. By building out its financial ecosystem, the company can increase its lead over rivals like Lyft. The efforts are likely to be focused on ways to increase engagement and loyalty to the Uber platform, according to people who attended a recruitment event earlier this year. Payments chief Peter Hazlehurst and top engineer Johnie Lee spoke at the event, held at Uber’s New York offices, the people said. There are many possible payment and lending innovations Uber could come up with: It has 93 million active users globally, most of whom use linked ...
Read More
Dara Khosrowshahi CEO uber tech - The SEC Publishes Report on Reg CF: “The number of crowdfunding offerings as well as the total amount of funding during the considered period was relatively modest”
Schulte Research | Paul Schulte | June 17, 2019 Digital banking finally arrives in HK --all in one go! Be careful what you wish for — you might get it.  Hong Kong People have been kvetching for years about the poor quality of banking services. Now, they will have a deluge of ultra-efficient and essentially free new services. These services will offer strictly online banking services without branches and ALL of them have very deep pockets. The first batch below, which I will enumerate in a moment, have capital to burn of about USD 250 million. This can go a long way in eroding the highly profitable cartel of HSBC and Hang Seng Bank.  Hang Seng Bank has consistently had among the highest ROE globally north of 20-21%. And its revenue per customer has been among the world’s highest as well. HSBC owns more than 40% of HSB, so it has been a cash cow for the bank. Hong Kong is really the center of profitability for HSBC, since its ROE for commonwealth countries is the single digits and it has basically given up on the US financial market.  It’s European business, like all Euro banking franchises, is in the ...
Read More
global network and points of presence maps - The SEC Publishes Report on Reg CF: “The number of crowdfunding offerings as well as the total amount of funding during the considered period was relatively modest”
Forbes | Enrique Dans | June 17, 2019 All the signs are that Facebook is about to launch its cryptocurrency on June 18, a project known internally as Libra, and that soon, apparently, we will all be using. So what are the implications of a company with 2.4 billion users launching its own currency? Strategically, the movement makes sense for Facebook: at a time when many question the its dominance of social networks and when a majority of its own shareholders say they want to see the back of Mark Zuckerberg, the company announces a very ambitious project of universal appeal giving it a central role in the world economy, in the wake of innumerable cryptocurrency projects of dubious legality, irresponsibly speculative and wasteful in terms of energy, aimed among others at people in countries with unstable currencies or limited banking penetration. As Jack Dorsey has said, this maybe the perfect moment to create a universal currency for the Internet era, reflecting the trend toward a universalization of the world. However, what is less clear is whether this currency should be in the hands of Facebook. See:  FaceCoin: Here’s What Facebook Could Build In Blockchain And Cryptocurrency Technically, the project ...
Read More
mark Z. facebook - The SEC Publishes Report on Reg CF: “The number of crowdfunding offerings as well as the total amount of funding during the considered period was relatively modest”

 

[Report] A New North Star: Canadian Competitiveness in an Intangibles Economy

Public Policy Forum | Robert Asselin and Sean Speer | April 4, 2019

a new north star canadian competitiveness - The SEC Publishes Report on Reg CF: “The number of crowdfunding offerings as well as the total amount of funding during the considered period was relatively modest”Rise of the intangibles

When New England Patriots quarterback Tom Brady played in his first Super Bowl in 2002, there was no iTunes store, no Facebook, no Instagram, no Airbnb, no Gmail and no Skype. Today the companies who own these intangible assets are worth more than $4 trillion. The rise of the intangibles economy will have sweeping policy implications that will become clearer over time. Nobody knows for sure where this is heading.

Our overriding objective in this paper is to help catalyze a bi-partisan policy discussion about a new “north star” for Canada’s economic competitiveness and the types of policy reforms needed to start us on this path. As part of this process, we set out a series of policy recommendations that cover the classic drivers of competitiveness such as taxation and regulation and drivers for the intangibles economy such as data governance, intellectual property retention, and the race for talent. But as important as these prescriptions are, the main takeaway for policymakers and the Canadian public is that the rise of the intangibles economy requires that we test old assumptions and are open to new thinking. Canada’s economy cannot afford complacency in this new economic era.

We need a new competitiveness consensus

In the world of policy and politics, short-termism and complacency are difficult to resist. They trump partisanship. They trump best intentions. Pressure mounts on any government or political party to respond to immediate issues and keep an eye fixed on the four-year election cycle. Both of us observed these demands in our respective positions as economic advisers to national governments.

See: 

Advancing Competition in a Changing Marketplace

Competition Bureau weighs in on fintech: urgent action required

Canada’s Regulatory System for Fintech is Complex, Costly and Chaotic. It is Stifling Fintech Innovation

NCFA Letter to Ontario Economic Development on Burden (Jan 2019)

The problem is that reactive governance is inconsistent with the mix of long-term policies required to promote broad economic participation and growth. For a competitiveness agenda to maintain and raise Canadians’ quality of life, it demands discipline, focus and a vision that extends beyond the election cycle. It thus requires a multi-partisan commitment. A change in government may naturally result in new preferences and priorities, but it should not cause us to lose collective sight of the common bases of competitiveness, productivity and jobs, and the greater opportunities and outcomes they produce for successive generations.

 


NCFA Jan 2018 resize - The SEC Publishes Report on Reg CF: “The number of crowdfunding offerings as well as the total amount of funding during the considered period was relatively modest” The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

Latest news - The SEC Publishes Report on Reg CF: “The number of crowdfunding offerings as well as the total amount of funding during the considered period was relatively modest”FF Logo 400 v3 - The SEC Publishes Report on Reg CF: “The number of crowdfunding offerings as well as the total amount of funding during the considered period was relatively modest”community social impact - The SEC Publishes Report on Reg CF: “The number of crowdfunding offerings as well as the total amount of funding during the considered period was relatively modest”
NCFA Summer Kickoff Event Jul 11 banner resize - The SEC Publishes Report on Reg CF: “The number of crowdfunding offerings as well as the total amount of funding during the considered period was relatively modest”

Yahoo Finance | VeChain Release | June 25, 2019 BEIJING, June 25, 2019 /PRNewswire/ -- On June 25, in combination with Walmart China, China Chain-Store & Franchise Association (CCFA), PwC, Inner Mongolia Kerchin Co., Ltd., and VeChain, the Walmart China Blockchain Traceability Platform, built on the VeChainThor Blockchain, was announced at the 2019 China Products Safety Publicity Week Traceability System Construction Seminar. This seminar was jointly organized by Walmart China and the CCFA in Beijing. The announcement of the Walmart China Blockchain Traceability Platform came with the introduction to the first batch of 23 product lines that have been tested and launched on the Platform. The Platform is expected to scale by another 100 product lines by the end of the year covering more than 10 product categories including fresh meat product, rice, mushrooms, cooking oil, etc. It is expected that the Walmart China's  traceability system will see traceable fresh meat account for 50% of the total sales of packaged fresh meat, traceable vegetables will account for 40% of the total sales of packaged vegetables, traceable seafood will account for 12.5% of the total sales of seafood by the end of 2020. See:  Q&A: Walmart’s Frank Yiannas on the use ...
Read More
walmart and vechain food safety - The SEC Publishes Report on Reg CF: “The number of crowdfunding offerings as well as the total amount of funding during the considered period was relatively modest”
Crowdfund Insider | JD Alois | June 20, 2019 The Securities and Exchange Commission (SEC) has published a statutory report on Regulation Crowdfunding commonly referenced as Reg CF. The mandated report must be forwarded to Congress three years after Reg CF rules became effective (May 2016). Reg CF is the smallest of three federal “crowdfunding” exemptions allowing issuers to raise just $1.07 million from both accredited and non-accredited investors. According to the report authors: “the number of crowdfunding offerings, as well as the total amount of funding during the considered period, was relatively modest.” The report tallies activity under Reg CF from May 2016 to December 31, 2018. At the end of the period, there were 45 active Portals and 9 Broker-Dealers which had participated in at least one Reg CF offering. See: $5 million Equity crowdfunding extended to private companies Early-stage Investing – The Public gets a Seat at the Table Three platforms accounted for two-thirds of all initiated offerings and proceeds raised. SEC: the number of #RegCF #crowdfunding offerings, as well as the total amount of funding during the considered period, was relatively modest Click to Tweet According to the SEC: Between May 16, 2016, and December 31, ...
Read More
RegCF SEC report - The SEC Publishes Report on Reg CF: “The number of crowdfunding offerings as well as the total amount of funding during the considered period was relatively modest”
Chambers Pivot Industries | Greg Chambers | June 20, 2019 "All I need is an investor, and I’m ready to go," she says. I'm sitting in front of a passionate entrepreneur who knows I've successfully raised millions of dollars for various businesses. After hearing her story, what I'm about to say won't be what she wants to hear, but it's true. Funding isn't her problem. There's more money out looking for a home than there are good ideas to fund. The problem, I tell her, is she hasn't decided if she wants to build a company or master the growing seed and startup capital environment. Lessons from the past I was in her seat in the late 1990s shopping my big idea from investor to investor. Eventually unsuccessful, I was forced to abandon my startup and find a job. I took two big lessons from that experience. One is that if I wanted to get a company off the ground, I needed to get much better at selling a vision to investors. Second, based on the questions the investors were asking, I needed far more evidence from customers that my idea was the right one before they’d invest. Years later, ...
Read More
hunter to prey - The SEC Publishes Report on Reg CF: “The number of crowdfunding offerings as well as the total amount of funding during the considered period was relatively modest”
Luge Capital | Karim Gillani | June 2019 Intro:  NCFA Fintech Confidential spoke with some of Canada’s experienced fintech investors, on their background, how Canada has evolved, what we should be doing, advice to fintech founders and what keeps them awake at night.  This is part 1 of a 4 part series.   What is your background, and how did you come to co-found Luge Capital? Karim:  My background is in fintech, mobile tech, engineering, finance and strategy. Prior to Luge, I was at PayPal, leading M&A activities in Canada. I joined PayPal through its $890M acquisition of Xoom, a renowned cross-border remittance company, where I started the Corporate Development practice. I have an Engineering degree from the University of Waterloo, a Master of Finance degree from the University of London and a Master of Laws from the University of Toronto. Luge Capital was the byproduct of highly motivated LPs, and a recognition that fintech venture capital needed a kickstart at the early stages. David Nault and I co-founded Luge in early 2018 with a new model to seek out entrepreneurs in the US and Canada that not only had a drive to take over the world, but also built their ...
Read More
luge capital - The SEC Publishes Report on Reg CF: “The number of crowdfunding offerings as well as the total amount of funding during the considered period was relatively modest”
CDL Team | June 18, 2019 The Libra Association announces a new initiative with the goal of increasing access to financial services and fostering financial inclusion around the world TORONTO, CANADA – Today, Creative Destruction Lab (CDL) – a not-for-profit seed-stage startup program – announces that it will be a Founding Partner of the Libra Association. CDL is keen to contribute to the success of the Libra initiative as the sole Canadian organization and academic institution in the Libra Association at present. The Libra Association will create Libra, a simple global currency and financial infrastructure that can empower billions of people. Libra will be built on a secure, scalable, and reliable blockchain; and it will be backed by a reserve of assets designed to give it intrinsic value. The Libra Association will govern the infrastructure and manage and evolve this new ecosystem. Libra will enable developers and businesses to build inclusive new financial service products for people around the world. See:  Facebook’s Libra Cryptocurrency: Everything We Know At this time, CDL is the sole academic Founding Partner of the Libra Association. The initial group of organizations that will work together on finalizing the association’s charter include: Payments: Mastercard, PayPal, PayU ...
Read More
CDL libra - The SEC Publishes Report on Reg CF: “The number of crowdfunding offerings as well as the total amount of funding during the considered period was relatively modest”
PC Mag | Rob Marvin | June 18, 2019 Facebook's Libra Cryptocurrency: Everything We Know Facebook's big blockchain play, consisting of the Libra coin, the nonprofit Libra Foundation, and Facebook's Calibra wallet, will create a crypto-based payments ecosystem across Facebook, Messenger, WhatsApp, and beyond. Facebook's long-rumored cryptocurrency finally got its big debut, and it's called Libra after all. Facebook today released a lengthy white paper, along with a post from Mark Zuckerberg and another from VP of blockchain David Marcus, announcing the ambitious crypto initiative and all that comes with it. The open-source Libra cryptocurrency and blockchain will be governed by the nonprofit Libra Association, while a new Facebook-owned subsidiary called Calibra will release a wallet for Libra tokens and ultimately other banking and finance products—a move that could turn Facebook into a financial services giant in addition to a social and advertising one. See:  Facebook’s Cryptocurrency: Great Idea, Wrong Company While the public launch of Libra won't happen until the first half of 2020, the developer testnet of the Libra blockchain is live today. There will also be a new programming language called Move for developers to build distributed applications atop the Libra blockchain, though Facebook said neither itself ...
Read More
facebook launches libra - The SEC Publishes Report on Reg CF: “The number of crowdfunding offerings as well as the total amount of funding during the considered period was relatively modest”
3iQ and Mavennet | Fred Pye and Kesem Frank | June 18, 2019 Stablecoins are now a necessary step to mass adoption of cryptocurrencies, as proven by the way they’ve been used to hedge the massive volatility of the market over the past couple of years. Their simple premise enables the seamless pairing of crypto-to-fiat pegged cryptocurrency. It might sound overly simplistic, but this straightforward innovation has spurred the growth of a new crypto asset class that measures in billions of dollars in aggregate market cap (e.g. Tether, USD Coin, TrueUSD, Paxos and Gemini Dollar). As much as this asset class is still gaining momentum driven by the current and common use case, the potential of stablecoins goes well beyond the tactical value of a trading tool. Stablecoins are strategically important because they represent a bridge between legacy fiat-based systems and the new digital and decentralized currency underpinnings we collectively call “blockchain.” The dream isn’t necessarily a prediction or extension of the purist’s vision   Bitcoin - blockchain’s earliest network - was born from tumultuous years in the traditional financial system. These were years defined by mistrust; not just towards the people at the helm of the financial system, but ...
Read More
stablecoins  - The SEC Publishes Report on Reg CF: “The number of crowdfunding offerings as well as the total amount of funding during the considered period was relatively modest”
CNBC | Kate Rooney and Hugh Son | June 10, 2019 Mobility giant Uber is looking to accelerate the creation of financial products with a new fintech outpost in New York, according to people with knowledge of the plan. The ride-hailing company is aiming to hire several dozen engineers and product managers this year, and the New York team could eventually exceed 100 workers, said the people, who declined to be identified speaking about Uber’s plans. Uber, fresh from its IPO last month, is looking to tap New York’s talent pool, which is deeper when it comes to fintech and bank workers than its hometown of San Francisco. By building out its financial ecosystem, the company can increase its lead over rivals like Lyft. The efforts are likely to be focused on ways to increase engagement and loyalty to the Uber platform, according to people who attended a recruitment event earlier this year. Payments chief Peter Hazlehurst and top engineer Johnie Lee spoke at the event, held at Uber’s New York offices, the people said. There are many possible payment and lending innovations Uber could come up with: It has 93 million active users globally, most of whom use linked ...
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Dara Khosrowshahi CEO uber tech - The SEC Publishes Report on Reg CF: “The number of crowdfunding offerings as well as the total amount of funding during the considered period was relatively modest”
Schulte Research | Paul Schulte | June 17, 2019 Digital banking finally arrives in HK --all in one go! Be careful what you wish for — you might get it.  Hong Kong People have been kvetching for years about the poor quality of banking services. Now, they will have a deluge of ultra-efficient and essentially free new services. These services will offer strictly online banking services without branches and ALL of them have very deep pockets. The first batch below, which I will enumerate in a moment, have capital to burn of about USD 250 million. This can go a long way in eroding the highly profitable cartel of HSBC and Hang Seng Bank.  Hang Seng Bank has consistently had among the highest ROE globally north of 20-21%. And its revenue per customer has been among the world’s highest as well. HSBC owns more than 40% of HSB, so it has been a cash cow for the bank. Hong Kong is really the center of profitability for HSBC, since its ROE for commonwealth countries is the single digits and it has basically given up on the US financial market.  It’s European business, like all Euro banking franchises, is in the ...
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global network and points of presence maps - The SEC Publishes Report on Reg CF: “The number of crowdfunding offerings as well as the total amount of funding during the considered period was relatively modest”
Forbes | Enrique Dans | June 17, 2019 All the signs are that Facebook is about to launch its cryptocurrency on June 18, a project known internally as Libra, and that soon, apparently, we will all be using. So what are the implications of a company with 2.4 billion users launching its own currency? Strategically, the movement makes sense for Facebook: at a time when many question the its dominance of social networks and when a majority of its own shareholders say they want to see the back of Mark Zuckerberg, the company announces a very ambitious project of universal appeal giving it a central role in the world economy, in the wake of innumerable cryptocurrency projects of dubious legality, irresponsibly speculative and wasteful in terms of energy, aimed among others at people in countries with unstable currencies or limited banking penetration. As Jack Dorsey has said, this maybe the perfect moment to create a universal currency for the Internet era, reflecting the trend toward a universalization of the world. However, what is less clear is whether this currency should be in the hands of Facebook. See:  FaceCoin: Here’s What Facebook Could Build In Blockchain And Cryptocurrency Technically, the project ...
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mark Z. facebook - The SEC Publishes Report on Reg CF: “The number of crowdfunding offerings as well as the total amount of funding during the considered period was relatively modest”

 

Inside the power struggle between big banks and fintechs to modernize financial services

Financial Post | Geoff Zochodne | March 27, 2019

powerstruggle fintech - The SEC Publishes Report on Reg CF: “The number of crowdfunding offerings as well as the total amount of funding during the considered period was relatively modest”Innovation Nation: Canada is lagging its global peers in adopting new financial technologies and more co-operation between established banks and startup fintechs would help

The federal government put the word out last July: it needed someone to study the landscape for financial technology companies, or fintechs, and figure out how they were getting along with the big banks and other financial institutions.

Sue Britton’s firm, Toronto-based Fintech Growth Syndicate Inc., won the contract for the study. In January, the group said it turned in a 240-page report, the first of its kind in Canada, that used only publicly available data sourced from more than 60 different websites.

What it found, among other things, was that there were approximately 1,000 fintechs across Canada offering services or products related to crowdfunding, insurance, wealth management, cryptocurrency, artificial intelligence, capital markets, lending and payments.

The majority of those companies were startups, founded in the years following 2012, and employed less than 99 people each, though combined they had more than 30,000 people. Perhaps more eye-catching was the estimated value of fintech startups in Canada: $30.5 billion.

What the study did not find, however, was 1,000 partnerships with financial institutions: Canada’s Big Five banks may have been increasing their engagement with fintechs, but “the majority of their efforts” were still on building their own products and digital experiences. They were also busy trying to update their “bowl of spaghetti” technologies and systems, some of which may be decades old.

See:  Competition Bureau weighs in on fintech: urgent action required

As a result, one of Canada’s biggest industries is innovating at a relatively tame pace, the country is lagging its peers in adopting new financial technologies and consumers of all types may be paying more for services than they should. The financial industry’s existing business models could eventually come under pressure as well.

“To the extent that we could find publicly available information, we were able to show that, yes, there are some fintechs that are partnering with financial institutions,” Britton said. “But certainly the majority of those partnerships are on the financial institutions’ terms. They’re not groundbreaking new business models … It’s not going to make the marketplace more competitive, because it’s going to, in fact, if anything, grow the business for the incumbent.”

Retaining the status quo may be all well and good for big banks and insurance companies for now. It may even be good for their customers — and most financial consumers have a connection to a big bank or insurer — who may be enjoying a smoother user experience or a new platform at their current institution of choice.

But legacy financial companies face a bit of a conflict of interest when it comes to innovation. After all, they have earnings targets to hit, shareholders to keep happy and thousands of employees and existing systems already in place to meet those goals. Why risk cannibalizing such profitable businesses or, moreover, give the vaunted stability of Canada’s financial industry a jolt?

Yet the incumbents could wake up one day to find their lunches being eaten by big-tech firms such as Amazon.com Inc. and Apple Inc., which are already offering a payments solution, some more aggressively than others.

“What our big banks aren’t doing is moving as quickly as other parts of the world, innovating their business models, extending financial services to more small businesses or reducing their fees,” Fintech Growth Syndicate said. “Perhaps, as Abraham Lincoln famously said, ‘give me six hours to chop down a tree and I will spend the first four sharpening the axe,’ they are still sharpening the axe.”

See:  Advancing Competition in a Changing Marketplace

It’s also possible that no one is even swinging an axe in the financial sector, despite the federal government’s efforts to push the innovation envelope in various industries.

Competition Bureau research “points to low levels of financial technology adoption in Canada relative to other countries, and limited consumer engagement driven, in part, by frictions associated with shopping around and switching,” according to a document published in February by the interim commissioner of competition. “These factors are symptoms of a market that is not functioning to its full potential.”

Britton believes the major banks and insurers face the innovator’s dilemma, first outlined in a 1997 book by Harvard professor Clayton Christensen: An incumbent with a big base of existing customers and shareholders demanding good returns is unlikely to welcome a company that could disrupt its own business.

On the other hand, “You don’t want to wake up one day and be Blockbuster,” she said.

Nobody, of course, wants to be compared to a bankrupt video-store chain, which is why the financial sector is certainly aware that the big-tech companies are making inroads into their business.

Royal Bank of Canada chief executive Dave McKay reportedly noted in mid-March that he was increasingly concerned with the prospect of Facebook Inc., Amazon.com, Apple, Netflix Inc. and Alphabet Inc.’s Google (the FANG companies) getting into banking.

“They are getting between us and the moments of truth of our customers, and currently what they do with that is they sell that insight back to us in the form of search and advertising and other perspectives, and they earn a certain amount of economic rent,” he said, according to Bloomberg.

RBC and the other big financial institutions know they need to up their game, something that was noted by Luge Capital, a Canadian venture fund focused on fintech and artificial intelligence, when it did its own scan of the fintech landscape for a report published last October.

See:  Open Banking: What’s Really at Stake

Luge Capital, which has been backed by institutions such as the Caisse de dépôt et placement du Québec and Sun Life Financial Inc., found the climate for possible partnerships between startups and big banks or insurers had improved.

“Large incumbents have customers, well-established brands and vaults of financial resources,” the report said. “As a venture capital fund with large financial institutions backers, such as Sunlife, Desjardins, CDPQ and La Capital and Le Fonds FTQ, we see first hand their desire to partner with early stage innovators.”

The biggest banks may still have the “vast majority” of the market share in financial services, but there has been a shift recently, said Karim Gillani, general partner at Luge Capital.

“In the last three to five years, there’s been a widespread recognition amongst the FIs (financial institutions) that they need to work with the early stage or smaller fintech companies in order to enhance their service offering for their customers,” he said.

Gillani said there was value in financial institutions exploring new ways of “offering functionality,” such as robo-advisers as a form of wealth management, something several banks have already done.

“It’s a demonstration of how banks are shifting their view from the traditional wealth-management experience to something that’s more automated and driven by technology so that it becomes appealing to a different segment of the population,” he said.

The federal government might open another door for the fintechs to get to the market. Ottawa is currently considering the idea of open banking, which is supposed to give people more control of their data and make it more portable.

See:  Canada’s financial upstarts are lining up behind open banking, but bigger players may need convincing

The competition commissioner, in a submission made in response to a government consultation paper that outlined the benefits and concerns of open banking, said the framework could allow consumers to shop around and compare prices, potentially stirring up competition by lowering search costs.

“Banks would be forced to compete harder for consumers, and consumers would have access to a broader range of services, if the benefits of technology could be more fully exploited through open banking,” the submission stated.

Yet bringing third parties into Canada’s financial system — renowned for its stability — has raised some concern for at least one federal regulator, who pointed out that such decentralization “magnifies non-financial risks and diffuses accountability.”

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NCFA Jan 2018 resize - The SEC Publishes Report on Reg CF: “The number of crowdfunding offerings as well as the total amount of funding during the considered period was relatively modest” The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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Yahoo Finance | VeChain Release | June 25, 2019 BEIJING, June 25, 2019 /PRNewswire/ -- On June 25, in combination with Walmart China, China Chain-Store & Franchise Association (CCFA), PwC, Inner Mongolia Kerchin Co., Ltd., and VeChain, the Walmart China Blockchain Traceability Platform, built on the VeChainThor Blockchain, was announced at the 2019 China Products Safety Publicity Week Traceability System Construction Seminar. This seminar was jointly organized by Walmart China and the CCFA in Beijing. The announcement of the Walmart China Blockchain Traceability Platform came with the introduction to the first batch of 23 product lines that have been tested and launched on the Platform. The Platform is expected to scale by another 100 product lines by the end of the year covering more than 10 product categories including fresh meat product, rice, mushrooms, cooking oil, etc. It is expected that the Walmart China's  traceability system will see traceable fresh meat account for 50% of the total sales of packaged fresh meat, traceable vegetables will account for 40% of the total sales of packaged vegetables, traceable seafood will account for 12.5% of the total sales of seafood by the end of 2020. See:  Q&A: Walmart’s Frank Yiannas on the use ...
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Crowdfund Insider | JD Alois | June 20, 2019 The Securities and Exchange Commission (SEC) has published a statutory report on Regulation Crowdfunding commonly referenced as Reg CF. The mandated report must be forwarded to Congress three years after Reg CF rules became effective (May 2016). Reg CF is the smallest of three federal “crowdfunding” exemptions allowing issuers to raise just $1.07 million from both accredited and non-accredited investors. According to the report authors: “the number of crowdfunding offerings, as well as the total amount of funding during the considered period, was relatively modest.” The report tallies activity under Reg CF from May 2016 to December 31, 2018. At the end of the period, there were 45 active Portals and 9 Broker-Dealers which had participated in at least one Reg CF offering. See: $5 million Equity crowdfunding extended to private companies Early-stage Investing – The Public gets a Seat at the Table Three platforms accounted for two-thirds of all initiated offerings and proceeds raised. SEC: the number of #RegCF #crowdfunding offerings, as well as the total amount of funding during the considered period, was relatively modest Click to Tweet According to the SEC: Between May 16, 2016, and December 31, ...
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RegCF SEC report - The SEC Publishes Report on Reg CF: “The number of crowdfunding offerings as well as the total amount of funding during the considered period was relatively modest”
Chambers Pivot Industries | Greg Chambers | June 20, 2019 "All I need is an investor, and I’m ready to go," she says. I'm sitting in front of a passionate entrepreneur who knows I've successfully raised millions of dollars for various businesses. After hearing her story, what I'm about to say won't be what she wants to hear, but it's true. Funding isn't her problem. There's more money out looking for a home than there are good ideas to fund. The problem, I tell her, is she hasn't decided if she wants to build a company or master the growing seed and startup capital environment. Lessons from the past I was in her seat in the late 1990s shopping my big idea from investor to investor. Eventually unsuccessful, I was forced to abandon my startup and find a job. I took two big lessons from that experience. One is that if I wanted to get a company off the ground, I needed to get much better at selling a vision to investors. Second, based on the questions the investors were asking, I needed far more evidence from customers that my idea was the right one before they’d invest. Years later, ...
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hunter to prey - The SEC Publishes Report on Reg CF: “The number of crowdfunding offerings as well as the total amount of funding during the considered period was relatively modest”
Luge Capital | Karim Gillani | June 2019 Intro:  NCFA Fintech Confidential spoke with some of Canada’s experienced fintech investors, on their background, how Canada has evolved, what we should be doing, advice to fintech founders and what keeps them awake at night.  This is part 1 of a 4 part series.   What is your background, and how did you come to co-found Luge Capital? Karim:  My background is in fintech, mobile tech, engineering, finance and strategy. Prior to Luge, I was at PayPal, leading M&A activities in Canada. I joined PayPal through its $890M acquisition of Xoom, a renowned cross-border remittance company, where I started the Corporate Development practice. I have an Engineering degree from the University of Waterloo, a Master of Finance degree from the University of London and a Master of Laws from the University of Toronto. Luge Capital was the byproduct of highly motivated LPs, and a recognition that fintech venture capital needed a kickstart at the early stages. David Nault and I co-founded Luge in early 2018 with a new model to seek out entrepreneurs in the US and Canada that not only had a drive to take over the world, but also built their ...
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luge capital - The SEC Publishes Report on Reg CF: “The number of crowdfunding offerings as well as the total amount of funding during the considered period was relatively modest”
CDL Team | June 18, 2019 The Libra Association announces a new initiative with the goal of increasing access to financial services and fostering financial inclusion around the world TORONTO, CANADA – Today, Creative Destruction Lab (CDL) – a not-for-profit seed-stage startup program – announces that it will be a Founding Partner of the Libra Association. CDL is keen to contribute to the success of the Libra initiative as the sole Canadian organization and academic institution in the Libra Association at present. The Libra Association will create Libra, a simple global currency and financial infrastructure that can empower billions of people. Libra will be built on a secure, scalable, and reliable blockchain; and it will be backed by a reserve of assets designed to give it intrinsic value. The Libra Association will govern the infrastructure and manage and evolve this new ecosystem. Libra will enable developers and businesses to build inclusive new financial service products for people around the world. See:  Facebook’s Libra Cryptocurrency: Everything We Know At this time, CDL is the sole academic Founding Partner of the Libra Association. The initial group of organizations that will work together on finalizing the association’s charter include: Payments: Mastercard, PayPal, PayU ...
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CDL libra - The SEC Publishes Report on Reg CF: “The number of crowdfunding offerings as well as the total amount of funding during the considered period was relatively modest”
PC Mag | Rob Marvin | June 18, 2019 Facebook's Libra Cryptocurrency: Everything We Know Facebook's big blockchain play, consisting of the Libra coin, the nonprofit Libra Foundation, and Facebook's Calibra wallet, will create a crypto-based payments ecosystem across Facebook, Messenger, WhatsApp, and beyond. Facebook's long-rumored cryptocurrency finally got its big debut, and it's called Libra after all. Facebook today released a lengthy white paper, along with a post from Mark Zuckerberg and another from VP of blockchain David Marcus, announcing the ambitious crypto initiative and all that comes with it. The open-source Libra cryptocurrency and blockchain will be governed by the nonprofit Libra Association, while a new Facebook-owned subsidiary called Calibra will release a wallet for Libra tokens and ultimately other banking and finance products—a move that could turn Facebook into a financial services giant in addition to a social and advertising one. See:  Facebook’s Cryptocurrency: Great Idea, Wrong Company While the public launch of Libra won't happen until the first half of 2020, the developer testnet of the Libra blockchain is live today. There will also be a new programming language called Move for developers to build distributed applications atop the Libra blockchain, though Facebook said neither itself ...
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facebook launches libra - The SEC Publishes Report on Reg CF: “The number of crowdfunding offerings as well as the total amount of funding during the considered period was relatively modest”
3iQ and Mavennet | Fred Pye and Kesem Frank | June 18, 2019 Stablecoins are now a necessary step to mass adoption of cryptocurrencies, as proven by the way they’ve been used to hedge the massive volatility of the market over the past couple of years. Their simple premise enables the seamless pairing of crypto-to-fiat pegged cryptocurrency. It might sound overly simplistic, but this straightforward innovation has spurred the growth of a new crypto asset class that measures in billions of dollars in aggregate market cap (e.g. Tether, USD Coin, TrueUSD, Paxos and Gemini Dollar). As much as this asset class is still gaining momentum driven by the current and common use case, the potential of stablecoins goes well beyond the tactical value of a trading tool. Stablecoins are strategically important because they represent a bridge between legacy fiat-based systems and the new digital and decentralized currency underpinnings we collectively call “blockchain.” The dream isn’t necessarily a prediction or extension of the purist’s vision   Bitcoin - blockchain’s earliest network - was born from tumultuous years in the traditional financial system. These were years defined by mistrust; not just towards the people at the helm of the financial system, but ...
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stablecoins  - The SEC Publishes Report on Reg CF: “The number of crowdfunding offerings as well as the total amount of funding during the considered period was relatively modest”
CNBC | Kate Rooney and Hugh Son | June 10, 2019 Mobility giant Uber is looking to accelerate the creation of financial products with a new fintech outpost in New York, according to people with knowledge of the plan. The ride-hailing company is aiming to hire several dozen engineers and product managers this year, and the New York team could eventually exceed 100 workers, said the people, who declined to be identified speaking about Uber’s plans. Uber, fresh from its IPO last month, is looking to tap New York’s talent pool, which is deeper when it comes to fintech and bank workers than its hometown of San Francisco. By building out its financial ecosystem, the company can increase its lead over rivals like Lyft. The efforts are likely to be focused on ways to increase engagement and loyalty to the Uber platform, according to people who attended a recruitment event earlier this year. Payments chief Peter Hazlehurst and top engineer Johnie Lee spoke at the event, held at Uber’s New York offices, the people said. There are many possible payment and lending innovations Uber could come up with: It has 93 million active users globally, most of whom use linked ...
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Dara Khosrowshahi CEO uber tech - The SEC Publishes Report on Reg CF: “The number of crowdfunding offerings as well as the total amount of funding during the considered period was relatively modest”
Schulte Research | Paul Schulte | June 17, 2019 Digital banking finally arrives in HK --all in one go! Be careful what you wish for — you might get it.  Hong Kong People have been kvetching for years about the poor quality of banking services. Now, they will have a deluge of ultra-efficient and essentially free new services. These services will offer strictly online banking services without branches and ALL of them have very deep pockets. The first batch below, which I will enumerate in a moment, have capital to burn of about USD 250 million. This can go a long way in eroding the highly profitable cartel of HSBC and Hang Seng Bank.  Hang Seng Bank has consistently had among the highest ROE globally north of 20-21%. And its revenue per customer has been among the world’s highest as well. HSBC owns more than 40% of HSB, so it has been a cash cow for the bank. Hong Kong is really the center of profitability for HSBC, since its ROE for commonwealth countries is the single digits and it has basically given up on the US financial market.  It’s European business, like all Euro banking franchises, is in the ...
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global network and points of presence maps - The SEC Publishes Report on Reg CF: “The number of crowdfunding offerings as well as the total amount of funding during the considered period was relatively modest”
Forbes | Enrique Dans | June 17, 2019 All the signs are that Facebook is about to launch its cryptocurrency on June 18, a project known internally as Libra, and that soon, apparently, we will all be using. So what are the implications of a company with 2.4 billion users launching its own currency? Strategically, the movement makes sense for Facebook: at a time when many question the its dominance of social networks and when a majority of its own shareholders say they want to see the back of Mark Zuckerberg, the company announces a very ambitious project of universal appeal giving it a central role in the world economy, in the wake of innumerable cryptocurrency projects of dubious legality, irresponsibly speculative and wasteful in terms of energy, aimed among others at people in countries with unstable currencies or limited banking penetration. As Jack Dorsey has said, this maybe the perfect moment to create a universal currency for the Internet era, reflecting the trend toward a universalization of the world. However, what is less clear is whether this currency should be in the hands of Facebook. See:  FaceCoin: Here’s What Facebook Could Build In Blockchain And Cryptocurrency Technically, the project ...
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mark Z. facebook - The SEC Publishes Report on Reg CF: “The number of crowdfunding offerings as well as the total amount of funding during the considered period was relatively modest”