Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Category Archives: Enterprise, Scaleup
U.S. AI Safety Institute Strikes MOUs with Top AI Firms
AI Safety | Aug 30, 2024
Image: Freepik
Anthropic and OpenAI Sign Agreements with the U.S. Artificial Intelligence Safety Institute (AISI)
Memorandums of Understanding have been signed that provide AISI early access to new AI models developed by OpenAI and Anthropic, both before and after they are released to the public. By collaborating on research to advance AI safety technology that can detect and mitigate risks, AI technologies will be developed in a way that optimizes the benefits and risks involved, which is aligned with the Biden-Harris administration's focus on responsible AI innovation.
See: NIST Insights: GenAI Risk Management Framework
Elizabeth Kelly, director of the U.S. AI Safety Institute:
“Safety is essential to fueling breakthrough technological innovation. With these agreements in place, we look forward to beginning our technical collaborations with Anthropic and OpenAI to advance the science of AI safety. These agreements are just the start, but they are an important milestone as we work to help responsibly steward the future of AI.”
Worth noting that such safety research will be coordinated in partnership with the U.K. AI Safety Institute. Again, what about Canada??
Outlook
Public-private partnerships are critical to protect national security and the public by identifying threats before they become wide spread. Canada, a leading AI nation, must be allowed to participate in such partnerships or risks losing its footing regarding the future development of responsible AI.
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, artificial intelligence, 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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Apple In Investment Talks With OpenAI $100 Billion Valuation
AI | Aug 30, 2024
Image: Freepik/rawpixel.com
Apple's Potential Investment in OpenAI to Bolster AI Strategy
According to reports, Apple is in discussions to invest in ChatGPT creator OpenAI as part of a new funding round that would value the AI startup north of $100 billion. This deal would position Apple alongside other major investors in OpenAI like Microsoft who has invested $13 billion across multiple rounds and currently owns 49% share of OpenAI's profits and fit well into it's wider AI strategy.
See: Apple’s Strategic Acquisition of DarwinAi
Apple has been steadily strengthening its AI capabilities through strategic acquisitions and product developments including notably (not exhaustive of course):
- Siri's ability to understand and respond to real time user interactions using natural language processing (NPL) improved greatly by buying VocalIQ (2015) and Turi (2016).
- With Apple's Core ML framework, developers can build AI solutions directly into iOS apps, allowing on-device processing which improves user privacy and efficiency. Apple's decision run AI locally on the device instead of the cloud reduces the amount of personal data transmitted, lowering the possibility of security breaches and maximizes privacy.
- Several features in Apple Watch are powered by AI such as heart rate monitoring and fall detection. Expect AI healthtech in wearables to grow.
- Apple has revolutionized smartphone photography with AI driven features like Smart HDR and Night Mode improving the quality of photos produced with the iPhone.
- Apple is a leader in AI privacy under a term they call 'differential privacy', pioneering various approaches to analyzing/processing massive datasets while maintaining user anonymity.
See: PwC Partners with OpenAI to Resell ChatGPT Enterprise
Integrating OpenAIs latest technology including ChatGPT throughout Apple devices would enable other products and services to access more advanced AI capabilities (like Siri). The outcome could change how users engage with Apple technology.
Outlook
While Apple's potential investment isn't a done deal and the terms haven't yet been disclosed, an investment and partnership with OpenAI would accelerate AI development and device capabilities throughout Apple's ecosystem, raising the bar in consumer electronics, home automation and smart devices.
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, artificial intelligence, 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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Russia Pivot’s on Crypto as BRICS Momentum Builds
Crypto | Aug 28, 2024
Image: Freepik/wirestock
BRICS alternative payment system and Russia's transition to crypto signal's global finance pressure on US dollar
As reported by Bloomberg, Russia will formally start testing cryptocurrency exchanges on September 1, 2024, in an effort to promote international trade and avoid US sanctions. These experiments will use the National Payment Card System (NPCS) to convert rubles to cryptocurrency. Concurrently, the BRICS countries (Brazil, Russia, India, China, and South Africa) are looking at trade alternatives to the US dollar, and talks about using a single currency are growing. These changes could have a profound impact to cross border payments, and provide new options for countries seeking to sever ties with the banking system dominated by the West.
Alternative Financial Networks
Russia hopes to provide a quick fix through the NPCS for Russian companies that are having trouble doing business abroad given the growing limitations of its access to international financial networks such as SWIFT.
See:
BRICS Announces Launch of Blockchain Payment System
SWIFT Launching CBDC Solution Within 2 Years (to Compete with BRICS)
At the same time, BRICS nations are discussing the possibility of establishing a single currency for commerce payments within their bloc. According to Cryptopolitan, On August 14, Russia's Finance Minister Anton Siluanov said that the administration is still working out the details of legalizing cryptocurrency exchanges, stating:
"As of yet, we have not discovered a way to accomplish this."
While creating a BRICS currency is still a long ways off, Russia is looking to support cross-border payments with crypto as a stopgap measure. As BRICS momentum grows, it highlights how international economies are looking for alternatives to reliance on the US dollar and those that control it.
Why It Matters
Russia's decision to proceed with crypto trials is a direct response to economic sanctions and aligned with BRICS' discussions on alternative financial systems. If these initiatives are successful, they may quicken adoption of crypto for cross border payments and transform trade between BRICS countries and the rest of the world.
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, artificial intelligence, 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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Revolut’s Crowdfunding Success from Start-up to $45 Billion
Crowdfunding | Aug 27, 2024
Image: Pixabay/geralt
Crowdfunding Triumph for Early Investors
While many know Revolut to be a robust global financial powerhouse, they may not be aware of the strategic and innovative crowdfunding success which opened the door to 433 retail investor to take part in their extraordinary growth journey. In 2016, Revolut raised a £1 million crowdfunding round at a valuation of just £42 million on equity crowdfunding platform Crowdcube. At that time, investors funded on average just £2,152 per investor. The demand was overwhelmingly successful that investors had to be randomly chosen from over 10,000 interested investors, and the campaign achieved its funding goal in a matter of days.
Fast forward to today, Revolut's valuation in 2024 has skyrocketed in true hockey stick fashion to $45 billion making those early crowdfunding investments ultra profitable with shares now valued at over £860,000 profit for up to 40,000% gains.
See: Fintech Revolut’s crowdfunding is going nuts, with £12 million pledged already
Looking back to that successful campaign over 8 years prior, Revolut together with Crowdcube demonstrated the power of crowdfunding where everyday retail investors could invest as remote 'armchair dragons' (a nod to entrepreneur's pitch show Dragon's Den) and achieve outsized returns in a world typically reserved for venture capitalists and early institutional investors.
Funding Milestones
- Seed Funding (2015): The cmopany raised $3.5 million to build its first product, a multi-currency card and payment platform.
- Series A (2016): Revolut secured $8.7 million to further build its platform and set the stage for future growth. At the time, Revolut's founders decided to allocate a portion of their raise to crowdfunding which not only resulted in fresh funds but earned 433 supportive fans who would promote and share the story.
- Series B (2017): Revolut raised $66 million at a valuation of $350 million to fuel international expansion.
See: Revolut Launches Low Fee Crypto Exchange in the UK
- Series C (2018): Next it was $250 million raise which brought Revolut’s valuation to $1.7 billion officially making it a unicorn.
- Series D (2020): Revolut secured $500 million which led its valuation to $5.5 billion. This led to new features like stock trading and crypto services.
- Series E (2021): $800 million at a valuation of $33 billion which confirmed itsposition as one of Europe’s most valuable fintech firms.
- 2024 Valuation: By this year in 2024, Revolut's value grew to $45 billion and the company announced plans to offer $500 million worth of shares to employees, signaling continued growth and eyeing a potential IPO.
Secret Sauce to Revolut's Growth?
- Revolut began as a straightforward multi-currency card and has now grown into a financial super-app that provides a swath of services like insurance, stock trading, cryptocurrency, and budgeting tools. Continuous product innovation.
- Global expansion has led Revolut to serving over 45 million customers in over 200 countries.
- Revolut's crowdfunding strategy helped raise funding dollars while creating a devoted group of early backers who served as brand evangelists and accelerated the company's growth.
See: Revolut Finally Receives UK Banking License (after 3 years)
Conclusion
Revolut's equity crowdfunding campaign provided retail investors the opportunity to join one of the biggest startup success stories in Europe highlighting the roadmap for innovation, strategic funding, smart investment, and the potential of equity crowdfunding as the firm contemplates an IPO.
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, artificial intelligence, 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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KOHO Gives Renters a Boost with Cash Back and Credit Help
Product Launch | Release | Aug 27, 2024
KOHO’s new rent reporting, cash back, and insurance empower Canadian renters financially
With the introduction of three new tailored services for renters, fintech pioneer KOHO is once again revolutionizing the financial environment for Canadians. Through its platform, KOHO has introduced Rent Reporting, Tenant Insurance, and Cash Back on Rent, giving tenants an easier way to build credit, safeguard their housing, and get incentives.
1. Credit Building for Renters
With roughly 33% of Canadians renting, KOHO seeks to fill a longstanding gap in the credit system where traditional mortgage payments contribute to building credit, while rent payments do not. KOHO is now making it easier for renters to have their rent payments recognized by credit bureaus, allowing them to build credit histories just like homeowners.
See: KOHO’s Strategic Push Towards A Banking License
KOHO members who pay rent using the site will have their payments recorded at the credit bureau improving their credit ratings over time. KOHO not only reports current rent payments, but it also reports prior rent payments, allowing renters to improve their credit records retrospectively.
Daniel Eberhard, CEO and founder of KOHO:
“The idea that paying a mortgage counts towards building credit, but paying rent doesn’t, is an outdated view of the world. We’re thrilled to bring Rent Reporting to our users. More than that, we’re adding Tenant Insurance and the first cash back on rent program in Canadian history. Newcomers, younger Canadians, and all renters deserve equal opportunities at building wealth. We’re excited to play a small role in that.”
2. Affordable Tenant Insurance
Renters frequently choose not to get insurance due to the high expense of living and growing insurance rates, which puts them at risk of financial difficulty in an emergency. Renters can afford to be protected by KOHO's Tenant Insurance, which makes sure they can meet unforeseen expenses without going over budget.
See: Banking Consolidation as Canadian Western Bank is Acquired
To solve this, KOHO has teamed up with Walnut Insurance to offer renters in Alberta, British Columbia, Manitoba, Nova Scotia, and Ontario reasonably priced Tenant Insurance. It's one of the most affordable solutions in Canada, with monthly costs as low as $22.
3. Cash Back on Rent in Canada
KOHO has also launched Canada's first rent cashback incentive. Rent payments made using the KOHO app can earn eligible users of the Everything plan with Tenant Insurance coverage 0.25% cash back. This program is a part of KOHO's larger goal of empowering Canadians with money by providing tools that enable them to earn, save, and accumulate wealth.
Conclusion
For renters, the innovative trifecta of Rent Reporting, Cash Back on Rent, and Tenant Insurance is a one-stop package towards strengthening financial health. Learn more about how KOHO is revolutionizing financial freedom.
NCFA Interview with Daniel Eberhard, CEO of KOHO on these Exciting New Products
KOHO CEO, Daniel Eberhard
Q1. Rent payments are often overlooked when it comes to building credit. Why do you believe it’s critical to bring rent reporting into the financial system now, and how do you think it will reshape how renters build credit in Canada?
Daniel Eberhard: The traditional entry point of 18-22% unsecured debt via credit card and then graduated to a mortgage is an obviously flawed path, and increasingly out of reach for younger Canadians, and those new to the country, etc.
We really believe all natural behaviours, like rent payments, utilities, cell phones, etc should all one day be part of someone’s credit score. 40% of Canadians rent today. If you look at Canadians below 35 or new to the country, it’s probably 60%. We need a financial system which recognizes and treats these people fairly.
Q2. How does KOHO’s rent reporting compare to mortgage reporting in terms of its impact on credit scores?
Daniel Eberhard: We don’t know yet but likely less impactful to start. All new forms of credit history require a big data set to be built. The bigger the data set, the easier it is to correlate payments with good credit behaviour. I would expect rent reporting to be less impactful today but hopefully in the future, they are equal.
Q3. Can you explain how historical rent payment reporting works? How far back can renters report past payments, and how does KOHO verify them?
Daniel Eberhard: With KOHO’s Rent Reporting launch, we are helping KOHO members build their credit history for free with the rent payments that they already make every month. KOHO reports current and future rent payments made through KOHO by Rent Reporting subscribers to the credit bureau, Equifax, on subscribers’ behalf.
Crucially, for Canadians living paycheque to paycheque, other providers charge for their rent reporting features. FrontLobby costs $4/month and Borrowell is $8/month. And even though Chexy provides their rent reporting feature for free, it is paywalled behind a 1.75% surcharge on rent payments – at the average Canadian rent in August 2024 of $2,201 according to Rentals.ca, that costs users $39 a month!
Canadians can get KOHO Essential for $0 through Qualifying Actions, including transferring at least $1,000 a month into KOHO to pay rent or setting up Direct Deposit, meaning many Canadians can get Rent Reporting for free through KOHO!
See: KOHO’s Strategic Push Towards A Banking License
Historical rent payment reporting is a little different – it enables users to build their credit history using up to 2 years of past rent payments. This can be done by collecting evidence that the past payments were in fact made, and then reporting them to the credit bureau, Equifax. KOHO does not offer historical rent payment reporting today, but is considering it for the future.
Q4. Beyond rent reporting, what other fintech products is KOHO considering to help underserved groups build credit? How does this fit into KOHO’s long-term vision?
Daniel Eberhard: This, along with our credit building products, free credit reports, and cash-advance “cover” and Pay Later products are all incremental steps in KOHO’s broader goal of democratizing wealth creation in Canada. There are more innovative products to come.
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, artificial intelligence, 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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Kraken’s Legal Battle with the SEC Continues
Regulation | Aug 26, 2024
Image: AI Freepik
Kraken's Request to Dismiss SEC Case Denied, Judge Allows Case to Go To Court
Judge William Orrick recently dismissed Kraken's request to have the case dismissed, allowing the SEC's lawsuit against the company to proceed. The SEC claims that by allowing the trading of tokens like Cardano (ADA) and Solana (SOL) that the SEC in fact deems as securities, Kraken has been operating as an unregistered securities exchange. This case is prominent and could impact the future laws governing crypto in the US, especially given that Kraken is one of the largest centralized digital asset exchanges in the world.
Key Takeaways
1. The SEC's Authority and the Howey Test
According to the judge, the SEC has made credible claims that some crypto transactions made possible by Kraken would meet the criteria for "investment contracts" under the Howey Test and be regarded as securities. Although the court has not yet made a decision, it made clear that Kraken's operations may be subject to SEC regulatory monitoring and warrants more investigation as to whether or not operations qualify as securities trading.
See: SEC Files Lawsuit and Accuses Kraken of Commingling
Also of interest, the court stated that an 'investment contract' does not require a formal agreement under the Howey Test. Conversely, it's focused more on the wider context of the transaction such as the investor's 'reasonable expectations' and how the deal was presented.
3. No Major Questions Doctrine
Legal counsel for Payward Inc., the parent company of Kraken Exchange, had submitted a motion that the case triggered a "major questions doctrine," which restricts the power of regulatory bodies to make significant judgments in the absence of the approval of congress. However, the judge dismissed this claim stating that crypto's impact on the economy would have to be much larger than it currently is (think large enough to affect the financial stability of the economy) to apply this rule.
4. Implications and Reactions
The decision to proceed to court is consistent with prior SEC measures taken against Coinbase and Binance, indicating that the SEC will keep advocating for further regulation of the crypto sector. The SEC's efforts to regulate digital assets may be strengthened even more by the court's decision to allow the case to proceed, particularly if it is shown that Kraken broke any securities laws.
See: Kraken’s Strategy for Canadian Market Growth
Marco Santori, Kraken's Chief Legal Officer, stated that Kraken doesn't think the tokens that are exchanged on its platform qualify as securities. He emphasized that Kraken intends to contest the Howey Test requirements in court, and the SEC will have to demonstrate that each transaction satisfies them.
Closing Outlook
Following the ruling, market reactions have been mixed.If the court sides with the SEC, it will lead to stricter requirements for all cryptocurrency exchanges.
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, artificial intelligence, 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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Microsoft to Launch Controversial Recall Feature
Data Privacy | Aug 26, 2024
Image: Freepik/rawpixel.com
Microsoft's new Windows Recall AI Faces Backlash Over Privacy Risks
Windows is launching Recall, a controversial AI feature to Windows Insiders this October 2024, that hopes to improve productivity by capturing the entire screen of a user's device in seconds-by-second screenshots including chat histories, web pages, files, and all user activities across multiple devices.
See: Good, Bad, and Ugly of Project Strawberry’s Capabilities
While the data is to be encrypted using BitLocker and stored locally so that it isn't uploaded accidentally or transferred anywhere online, critics argue that Recall infringes on privacy as it captures sensitive information such as passwords, bank account details and private chats which can fall into the wrong hands. What if malware penetrates your local machine, hackers could access/modify such screenshots or create new vulnerabilities resulting in a privacy nightmare.
Benefits
Among the handful of benefits, Recall is supposed to improve productivity as users can search for past content and work activity easier. Instead of manually hunting for past documents, they can simply key in prompts like 'cybersecurity presentation I worked on last month' and get immediate results, thus saving time.
See: Small Language Models Prioritize Privacy and Efficiency
Recall also supports voice search, so a hands-free environment. It also integrates well with aligned apps and browsers potentially improving the overall user experience by providing easy access to past content and flows.
Unintended Consequences?
- Companies might use an AI feature like Recall for employee surveillance to monitor activity at the workplace.
- With vast amounts of sensitive user data at risk, it's a natural target for hackers to try and exploit. It's kind of like having an expensive car in your driveway that's asking for robbers to steal it.
- Many feel uncomfortable knowing that every move they make is digitally recorded (even despite Microsoft's claims that it's encrypted, and stored/analyzed locally). Experts warn of physical access breaches.
When is the public release?
Recall's public release was originally postponed due to widespread concerns but Windows Insiders will be able to access it this October 2024 and wider distribution is expected thereafter. Initially, it will only work on devices with certain AI ready hardware.
See: 5 Billion Profiles: Class Action Lawsuit Accuses Oracle of Privacy Breach and “Global Surveillance”
Outlook
The balance between improving productivity and ensuring data security will determine the feature’s success or failure. We anticipate this AI feature to be full of conflicts and the risk to outweigh the benefits.
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, artificial intelligence, 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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