Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Category Archives: Research
Examining the Impact of SVB’s Collapse on the Fintech Industry Ecosystem
WhiteSight | Kshitija Kaur & Risav Chakraborty | March 29, 2023
Image: WhiteSight
Over 2600 fintech clients, who regarded the bank as a trusted venture debt financier, commercial payment gateway, and online payment acceptance facilitator.
See: With SVB Now Done. What’s the Impact for Canadian Tech?
- With 71% of all fintech IPOs since 2020 being accounted for by its fintech clients, SVB is undeniably deeply ingrained in the fintech ecosystem. This profound relationship dates back to its very past, with SVB evolving in parallel with the startup industry as it focused on understanding the entire lifecycle of capital within the ecosystem and designed a business to address the diverse needs of the community. This explains why the potential impact of recent tremors within the industry looms large, particularly for smaller fintech firms.
- Beyond Banking: SVB's focus on specific sub-sectors has ensured that it caters to the needs of fintechs of all sizes. While payments, accounting, expense management and lending were the four spheres where partnerships were most commonly forged, it also spread its wings into e-commerce, cryptocurrency and blockchain, wealthtech, insurance, as well as fraud and identity.
- SVB's fallout will undoubtedly trigger a ripple effect, causing distress and concern across these segments to varying degrees. However, the payments industry may feel the brunt of the impact, given SVB's significant involvement in this space. Payment fintechs, big or small, many of whom relied on SVB, now face the daunting task of finding a suitable replacement bank as many of them are cautious of the customers they onboard, placing greater emphasis on proof of revenue.
Read: Superintendent of Financial Institutions took further action on the Silicon Valley Bank Canadian Branch
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Impact: Amidst the tumultuous fallout that has sent shockwaves through the industry, delayed payouts, reduced trust, and implications on the bank's lending business only compound the mounting issues.
- That both systemic and idiosyncratic risks must be identified and mitigated to some extent. The concept of putting all your eggs in one basket may no longer be a viable strategy. Instead, a significant reliance on enabling the broader value chain may be necessary for the future.
- Yet, within the chaos, there are underlying opportunities for neobanks and other players in the cross-border payments space. These opportunities may prove especially beneficial for newly established fintechs seeking to capitalise on the turbulence and establish themselves as viable alternatives.
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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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Some Exciting Fintech Stats (2023-2025)
Exploding Topics | Josh Howarth | Jan 20, 2023
The fintech space is making fast strides across many financial sectors, including consumer and B2B. Fintech investment and consumer adoption are clearly on the rise. But to what extent? And where is this industry headed? This list has you covered with a wide range of key, up-to-date financial technology (fintech) statistics.
- Fintech Industry Size:
- The fintech industry is worth approximately $180 billion (Deloitte)
- Global fintech industry revenue has nearly doubled since 2017 (Deloitte)
- There are currently over 26,000 fintech startups worldwide. This figure has grown dramatically over the past few years (up from only around 12,000 fintech startups in 2019).
See: KPMG: Canadian Fintech Investment Drops in 2022, Mentality Shift to ‘Sensible’ Growth
- Investment:
- Fintech industry investment has increased 3.5x since 2015 (KPMG)
- In 2012, investment in fintech totaled $4 billion. By the end of 2021, fintech investment reached $210 billion.
- Venture capital distributions by sector funding:
- #1 Capital markets $8.07 billion
- #2 Payments $6.03 billion
- #3 Wealth management $5.43 billion
- #4 Digital lending $3.97 billion
- #5 SMB $3.36 billion
- #6 Banking $3.27 billion
- #7 Real estate $2.42 billion
- #8 Insurance $2.30 billion
- Adoption: 90% of Chinese citizens use fintech banking, payment, and financial management solutions (EY)
Continue to the full article --> here
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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Seedrs Update: UK Equity Crowdfunder Raises Over US$100 Million Online Capital In February
Crowdfund Insider | | Mar 10, 2023
Seedrs, a top UK-based investment crowdfunding platform that operates across Europe, is reporting £84 million in investment across all securities offerings during the month of February (so Seedrs could top USD $ 1 billion during 2023)
- Seedrs noted it booked its 49th exit of a portfolio company as Cushon, a Fintech, was acquired by Natwest Group. Seedrs investors received £7 million in returns, with the earliest investors capturing 5X times the money invested, before tax relief. Cushon completed multiple funding rounds on Seedrs so later investors received smaller returns.
- February 2023: Seedrs said that nine “primary campaigns” (or retail offerings) raised £18.5 million from over 3,800 investors. Seedrs highlighted the following securities offerings during the month including:
- Tandem, a UK-based regulated digital bank, raised £8 million in a Private Deal Room offering
- OddBox, a Foodtech startup, raised £5.9million to fund their mission of having consumers use unwanted produce
- Fantasy football platform Fantasy Football Hub raised £788,000
- Fintech The Portfolio Platform secured £ 1.5 million for its tech investment platform
- Sustainable Venture’s Sustainable Accelerator raised over £ 1.6 million in February. The fund invests in startups tackling climate change.
See: Equity Crowdfunding Growth: It Took UK Seedrs 8 Years to Raise the First £1Billion and Only 2 Years for the Next Billion
- Also February: Seedrs also provided an update on its Secondary Marketplace, which continues to grow. Seedrs reported that Fintechs and the Food and Drink sector were the most active trading segments. Approximately 306 issuers traded shares representing a 38% increase in sales in comparison to January 2023.
Continue to the full article --> here
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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10 Most Innovative Companies in 2023: Blockchain, Crypto, Metaverse, Web3
Fast Company | Connie Lin | March 2, 2023
Image: Fast Company
In a tumultuous year for crypto and the metaverse, companies such as Roblox, Nike, the Ethereum Foundation, and DressX made real inroads in digital currency, virtual goods, and more.
- Cryptocurrency may have rocketed into the stratosphere during the pandemic, but in 2022, it came crashing back down to Earth. Millions of people lost billions in the implosions of Terra-Luna, then Celsius, then FTX. With the industry’s dead weight cut loose, some crypto advocates saw a chance for the truly innovative ideas buried amid the rubble to soar.
- Of course, that meant reimagining what the future of Web3 might look like as companies race to settle crypto’s wild west—including the metaverse, a nebulous concept that many have linked to Web3’s growth as our lives continue to get more digital.
- Roblox, DressX, and Emperia gave us glimpses into that still-uncharted territory, with successful forays in digital currency, avatar fashion, and virtual shopping experiences.
- Nike staked its claim among Web3 hypebeasts by channeling sneakerhead culture into its CryptoKicks NFTs.
- And LinksDAO brought golf onto the blockchain with a decentralized “country club” for players to connect across the globe.
See: Anthony Di Iorio Unveils Web3 Blockchain Hardware and Game Theory Project: Andiami
- Meanwhile, other companies set out to address the industry’s pitfalls.
- Chainalysis used its forensic prowess to hunt down crypto funds stolen through hacks and scams, and
- Ledger engineered a smarter hardware wallet to keep your money safe offline.
- The Ethereum Foundation worked to mitigate crypto’s climate impact with a tech upgrade dubbed the Merge, and
- The Hundreds clapped back at the industry’s spotty track record on creator royalties with a reworked smart contract system that makes sure artists get their dues.
Continue to the full article --> here
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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Bank of Canada Paper: Fragility of DeFi Lending
BoC | Jonathan Chiu, Emre Ozdenoren, Kathy Yuan, Shengxing Zhang | Feb 22, 2023
This finding highlights the difficulty of achieving stability and efficiency in a decentralized environment without a liquidity backstop.
- We develop a dynamic model of decentralized finance (DeFi) lending that incorporates two/these key features:
- 1) borrowing and lending are decentralized, anonymous, overcollateralized and backed by the market value of crypto assets where contract terms are pre-specified and rigid; and
- 2) information friction exists between borrowers and lenders.
See: Bank-Issued Deposit Tokens Emerge and JP Morgan Sees Them Going DeFi
- We show that flexible updates of smart contracts can restore equilibrium uniqueness.
- We identify a price-liquidity feedback: the market outcome in any given period depends on agents’ expectations about lending activities in future periods, with higher price expectations leading to more lending and higher prices in that period.
- Given the rigidity inherent to smart contracts, this feedback leads to multiple self-fulfilling equilibria where DeFi lending and asset prices move with market sentiment.
- We show that flexible updates of smart contracts can restore equilibrium uniqueness.
Continue to the full article --> here
Download the 42 page PDF --> here
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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Bitcoin Payments on the Rise
Reuters | , | Feb 28, 2023
The 15-year-old cryptocurrency has filled many roles - from source of speculation to hedge against inflation - but has struggled to find a clear identity. Now there are growing signs it’s edging towards its intended purpose: payments.
- Bitcoin payments on the rise: The amount of bitcoin stored on the Lightning Network - a payment protocol layered on top of the blockchain - has jumped by two-thirds over the past year to hit an all-time high of 5,580 coin, according to crypto data firm The Block. Crypto payment specialists have also seen strong volumes.
- U.S.-based BitPay said transaction volumes jumped 18% last year versus 2021. CoinsPaid said volumes in the fourth quarter of 2022 rose 32% compared with a year before.
See: Lyn Alden Analysis: A Look at the Lightening Network
- Aside from bitcoin, other cryptocurrencies including stablecoins, which are pegged to the value of traditional currencies, have emerged as popular options, particularly for cross-border payments, remittances, plus in emerging markets where the value of local currencies have been hit by inflation.
- Efforts by some of the world’s largest economies, including Japan, China and India, to create their own digital currencies (CBDCs) could also choke crypto payments growth, say some market players. For others, though, growing interest in CBDCs is evidence that blockchain payments tech is here to stay.
Continue to the full article --> here
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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KPMG: Canadian Fintech Investment Drops in 2022, Mentality Shift to ‘Sensible’ Growth
KPMG | Release | Feb 15, 2023
Investment in Canada's fintech sector dropped last year, as valuations declined more than five-fold and the number of deals slowed significantly towards the end of the year. Despite the slowdown, it was still the second-best year for deal volume.
- 2022 highlights: There were 169 fintech investments worth US$1.3 billion in Canada in 2022, down from a record 217 deals worth US$7 billion in 2021, according to data compiled by PitchBook for KPMG in Canada.
- In H2'22, there were 68 investments worth US$439.9 million (down from H1'22 when there were 85 deals worth US$810 million)
- The fourth quarter was the weakest quarter of the year, with 27 deals worth $154.8 million (down from the first quarter, which saw 41 deals worth US$285 million and the fourth quarter of 2021 which saw 52 deals worth US$956 million).
- There were no (fintech) IPOs in Canada
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Cryptoassets and Payments draw investors: By sector, payments remained the hottest sector globally, while cryptoassets and blockchain companies garnered the most interest in Canada despite a year of volatility from the collapse of some stablecoins, cryptoasset exchanges and lenders.
See: FIS Report: Embedded Finance, Web3 and ESG Lead 2023 Fintech Investment Focus
- Count by Deal type:
- 57 seed round
- 41 early-stage VC
- 30 late-stage VC
- 20 M&A
- 9 angel investments
- 7 buyouts/LBOs
- 5 PE growth/expansion
- Investment Count by Sector
- 51 Cryptoassets
- 16 Payments
- 15 RegTech
- 12 InsurTech
- 8 Proptech
- 1 Cybersecurity
- 1 WealthTech
See: KPMG Fintech Pulse H1’22 Report: Global Fintech Investments $107.8B across 2,980 Deals
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Outlook for 2023:
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The slump in Canadian and global markets put downward pressure on valuations last year, a trend expected to continue this year.
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A potential recession, rising interest rates and inflationary pressures are top of mind for investors, so we expect valuations and deal volumes to remain subdued through 2023, with a slight pickup near the end of the year
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The fintech space is also undergoing a bit of a mentality shift from 'growth at any cost' thinking to focusing on sensible growth and cash preservation
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In 2021, many companies saw a huge influx of capital from VC investors, so some of those firms won't need cash until sometime in 2023 - maybe even 2024 – because they've streamlined and restructured their operations to make that cash last longer.
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View the original release --> here
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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