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
Borderless AI Launches Crypto Payroll For Global Teams
Apr 23, 2026 | NCFA Fintech Market Activity | Payments And Money Movement, Digital Assets Blockchain And Tokenization
Canadian Company Extends Payroll Stack Into Crypto Settlement
On April 23, 2026, Borderless AI launches crypto native payroll, providing companies the ability to pay employees and contractors in cryptocurrency.
Based in Toronto, and now operating at scale in more than 170 countries, and supporting payments in over 90 currencies, the company is expanding its global employment platform by adding a settlement option to a solution that already handles hiring, compliance, and payroll across borders.
Its payroll system settles in about 5 days, compared to over 20+ days across traditional cross border rails. The platform also removes upfront salary deposits, which can range from $7,000 to $20,000 per employee in legacy models.
The company has raised $32 million in January 2025 to build what it describes as an AI-native employment platform. Its AI agent can generate contracts, analyze legal terms, and answer tax questions in 170 languages, completing work that typically takes 7 to 10 days in minutes.
Borderless AI supports more than 1,500 companies and holds a 4.9 out of 5 rating on G2, one of the highest among Employer of Record providers.
The company is also building distribution with its integration with ADP Workforce Now across the U.S. and Canada which places Borderless AI directly inside one of the largest HR ecosystems. I allows companies to manage global hiring, payroll, and contractors without switching systems or duplicating data.
See: Nmbr-Powered Payroll First Embedded In Canadian HR Stack
Crypto payroll fits into that structure. Cross border payroll still goes through banks, FX providers, and local clearing systems. Each step adds delay, cost, and failure risk. Crypto settlement removes part of that chain by allowing funds to move directly to wallets once payroll is approved.
For companies running distributed teams, faster settlement reduces cash flow friction and removes the need to pre fund payroll across multiple jurisdictions. For workers, it provides flexibility in how compensation is received and stored, particularly in markets where banking access or currency stability varies.
Talking Point
Most platforms stop at payroll execution and rely on banking partners to complete payments. Borderless AI is reducing that dependency by adding crypto settlement. If settlement begins moving away from banking rails, platforms that own that layer can capture more margin and control the full payment flow.
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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VAST Data Hits $30B On AI Infrastructure Demand
Apr 22, 2026 | NCFA Fintech Market Activity | Artificial Intelligence And Data, Capital Markets And Funding
$1B Round Backs Unified Data Layer For AI Scale
On April 22, 2026, VAST Data closed $1 billion Series F round in primary and secondary capital at a $30 billion valuation. Drive Capital and Access Industries led the round, with Fidelity, NEA, and Nvidia also participating. The valuation has more than tripled from $9.1 billion in 2023.
VAST sells the data infrastructure empowering AI systems. Its customers include xAI, CoreWeave, and the U.S. Air Force. In November, the company signed a $1.17 billion agreement with CoreWeave. Equity research by Sacra puts Vast Data at $200 million in annual recurring revenue with positive free cash flow as of January 2025. That gives the funding round a clearer base in commercial demand.
Why VAST Is Not Just Another Storage Company
VAST is building a unified data platform rather than a single product. Its core platform architecture combines storage, database, and global data management into one stack:
- DataStore covers file, object, block, and volume services
- DataBase handles structured data, vectors, streams, and metadata
- DataSpace provides a global namespace across cloud, edge, and on-prem environments
See: AI Usage Data Shows Early Labour Market Strain
The difference shows up in how the platform is positioned for AI workloads. VAST combines storage and database functions into one system and claims performance gains tied to that design, including up to 11x faster vector search at 91% lower cost, alongside six nines availability (99.9999%) and about 60% lower total cost of ownership, as outlined on its core platform page. These are vendor claims, but they reflect how the company is positioning itself in large scale AI deployments.
What The Funding Says About The Market
The competitive landscape spans multiple layers:
- Storage incumbents such as Dell, NetApp, and Pure Storage still dominate enterprise environments
- AI-focused data infrastructure firms like DDN and Weka push into high performance training workloads
- Cloud and data platforms such as Snowflake intersect when pipelines connect into analytics and model operations
VAST is positioning itself across boundaries by collapsing multiple data layers into one system. That architecture targets a real constraint. AI systems don’t stall only because of compute limits. They stall when data throughput and pipelines slow down, when storage tiers introduce latency, or when separate systems create operational overhead. Adding more GPUs can increase pressure on that layer instead of fixing it.
The funding structure reinforces the point. Primary capital brings in new money to help the company grow and work more closely with large customers. Secondary capital lets early investors and employees sell some of their shares and take cash out without the company going public. This mix is common in large late stage rounds where demand is strong and companies stay private longer.
See: Smart Data Infrastructure Redefines Financial Competition
For smaller AI finance companies, the takeaway is practical. The infrastructure layer is being built by a small group of well funded players. There is no advantage in trying to replicate it. Their advantage comes from what they build on top. It’s about having unique data, strong products that solve real workflows, and access to customers. Those are the things that still decide who wins.
Talking Point
VAST is successfully raising money because it brings together parts of the AI system that companies usually have to piece together themselves. When computing is expensive and data slows things down, the platform that keeps data fast and accessible becomes part of the core infrastructure.
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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Nuvei Launches Direct Acquiring In Mexico
Apr 22, 2026 | NCFA Fintech Market Activity | Payments And Money Movement
Local Processing Improves Approval Rates And Costs
On April 21, 2026, Nuvei launched direct local acquiring in Mexico. Merchants can now process domestic card payments through Nuvei’s own licensed infrastructure instead of relying on third party processors.
Mexico is a large and growing digital commerce market. Payments volume reached more than $676 billion in 2024, with ecommerce at approximately $97 billion and growing at about 24% a year. This makes local processing important for merchants operating in the market.
Phil Fayer, Chair & CEO of Nuvei:
"Commerce is global, but payment performance is local. Our direct acquiring expansion into Mexico advances our Every Payment Everywhere strategy -- building infrastructure inside domestic payment ecosystems so customers can scale globally while performing like a local."
Direct acquiring means Nuvei connects merchants directly to card networks and local banking systems inside the country. That gives Nuvei control over authorization, settlement, and transaction data within Mexico.
This improves performance in practical ways. Domestic processing can increase approval rates, reduce cross border fees, and shorten settlement times. It also removes reliance on local partners for core processing functions.
Nuvei now operates direct acquiring in more than 50 markets, following a consistent growth pattern across the business. The company builds local infrastructure in markets where payment performance depends on domestic connectivity, as seen in its work supporting omnichannel merchants and its expansion into regulated digital asset services in Europe.
Founded in Montreal, Nuvei is one of the few Canadian fintechs building global payment infrastructure at scale. That positions the company alongside global processors that own local acquiring rather than those that depend on partner networks.
See: Peoples Group, Fiserv to Modernize Payments Infrastructure
Mexico adds another high growth market where local infrastructure determines payment performance. Without direct acquiring, transaction success depends on intermediaries. With it, Nuvei can manage approval rates, costs, and settlement directly.
Talking Point
Nuvei is building control at the processing layer. The more markets it owns locally, the less it depends on partners and the stronger its position becomes.
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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Neo Turns Consumer Credit Into Institutional Funding
Apr 21, 2026 | NCFA Fintech Market Activity | Capital Markets And Market Infrastructure, Lending Consumer Credit And BNPL
$150M Securitization Validates Neo Credit Model
On April 21, 2026, Neo Financial completed a $150 million inaugural credit card securitization with BMO Capital Markets and SAF Group. It’s Neo’s first institutional capital markets transaction, and it provides the company a new way to fund lending growth beyond equity.
In February, Neo raised $68.5 million to launch its securitization program. Now the structure is live, equity set it up, and securitization is bringing in institutional capital. Neo now serves more than 1 million customers, works with more than 10,000 partners, and has raised more than $650 million since launch.
Jeff Adamson, Co-founder and Chief Commercial Officer, Neo Financial:
“Institutional capital markets evaluate credit quality with complete objectivity. Getting this done at this scale tells us the data is there and is a testament to the approach we've taken. That's the foundation we need to serve a lot more Canadians.”
Securitization converts credit card receivables (money people owe on their credit cards) into securities sold to institutional investors. That upfront capital can then be used to originate more loans. Canadian banks have relied on this model for years. For a fintech, getting the first deal done proves the credit engine can support external funding.
See: Ledn Bitcoin Backed ABS Deal Enters Institutional Markets
Equity is expensive capital for a lender, while a working securitization program can lower funding costs, expand lending capacity, and reduce reliance on repeated equity raises. Access depends on consistent asset performance.
Nur Khan, Managing Director, SAF Group:
"Our partnership with Neo reflects SAF's commitment to supporting Canada's most ambitious growth stories and highlights the strong demand for a Canadian-based provider of structured credit. We have been extremely impressed by the Neo team and the platform they are building to provide consumers with more accessible financing options across an expanding range of products."
This is a milestone few Canadian fintech lenders reach. Customer growth and funding rounds don't confirm a sustainable lending model at scale. Institutional capital does. If performance holds, this program provides a more stable funding base and sets a benchmark others will watch.
Talking Point
Neo now uses institutional funding as well as equity. The money it can raise depends on how well its loans perform and on market conditions. This helps it grow, but it needs steady results to keep that funding.
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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Brussels Faces Pressure to Fix Europe’s DLT Pilot
Apr 21, 2026 | NCFA Insight | Capital Markets And Funding
EDFA Tells Brussels What Tokenized Securities Need To Scale
On December 4, 2025, the European Commission published its market infrastructure reform package, including proposed changes to the DLT Pilot Regime. On March 19, 2026, the European Digital Finance Association (EDFA) sent a formal letter to the European Commission about the DLT Pilot Regime and MiCAR. It is addressed to Commissioner Maria Luís Albuquerque and DG FISMA Director-General John Berrigan.
EDFA writes on behalf of its members and the undersigned companies. The core point is that the pilot works for testing, but it does not work for scale. Firms are already trying to build tokenized issuance, trading, registry, custody, and settlement in Europe. The problem is that the current DLT Pilot rules keep those activities small, separate, and hard to repeat.
What EDFA Is Asking For
- Broader scope. The letter backs earlier application of changes that would extend the DLT Pilot to more, or all, financial instruments and remove product-specific thresholds. It also supports replacing the current instrument-by-instrument limits with a single overall threshold. The reason is practical. Firms will not invest for the long term if issuance caps stay low and the usable asset set stays narrow.
See: The SEC’s New Crypto Playbook Faces Its First Test
- Interoperability standards. The letter calls for mandatory interoperability between DLT infrastructures and regulated markets and central securities depositories, and asks the Commission to task ESMA with developing technical standards for cross-border connectivity. Without that, tokenized venues remain isolated pools. Liquidity fragments. Secondary trading stays thin.
- The Commission to fix the registry and notary gap. The EDFA letter explains that the EU framework opens these roles beyond traditional central securities depositories, but still leaves out firms already operating under national DLT registrar regimes. EDFA points to Germany’s eWpG (electronic securities act, June 2021) system and similar setups in Luxembourg and Italy. It wants those firms to be recognized at the EU level, allowing them to keep operating under their current approvals, and assessed fairly against EU standards. They allso says the rules should match what these firms actually do, instead of forcing them to meet the full requirements designed for large central depositories.
- Legal clarity on settlement. The letter asks for explicit recognition of tokenized commercial bank money and MiCA-regulated e-money tokens as eligible settlement mechanisms inside DLT infrastructures. This is a major point because if settlement assets aren't clearly recognized, companies can issue on-chain but still struggle to build active trading and repeat liquidity.
The Gap Between Pilot And Market
The issue is structural. The DLT Pilot allows firms to test tokenized issuance, trading, and settlement in controlled conditions. But it doesn't allow those activities to operate at scale. Issuance happens, but it stays small. Trading exists, but liquidity doesn't build. Infrastructure is in place, but it doesn't connect cleanly to the rest of the market. Until those limits are addressed, tokenized securities remain confined to pilot activity instead of forming a market where deals can regularly happen at meaningful scale.
If Brussels makes these changes, firms can issue larger deals and do it more than once. Tokenized platforms can connect to exchanges, custodians, and settlement systems instead of running separately. Companies already licensed at the national level can keep operating instead of being pushed out. And with clear settlement rules, those deals can actually trade and attract real liquidity.
See: Tokenization Finds Scale In Collateral And Cash
If Brussels does not act, the likely outcome is also clear. Europe will keep producing tokenized deals as part of the DLT pilot, but the market will remain shallow and less commercially important. Operators will keep building, but they will be outwardly looking at jurisdictions that allow larger, cleaner, and more continuous activity.
Are We There Yet?
The DLT Pilot was designed for controlled testing, and has done that. The question now is whether the framework evolves to support real market activity. If it doesn’t, tokenized securities will stay limited to small, controlled use cases. If it does, they can develop into a market with real issuance, trading, and liquidity.
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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W-2 vs 1099 Filing: Key Differences Explained Clearly
April 21, 2026
Image: Pexels
W-2 and 1099 forms filing is one of the least understood areas of running a business.
Get it wrong and the IRS will come after you. Get it right and taxes will be a breeze.
The good news? Once the differences click, it's pretty straightforward.
What's Inside:
- What Are W-2 and 1099 Forms?
- Who Gets Which Form?
- The Big Tax Differences
- Filing Deadlines You Cannot Miss
- The Real Cost of Getting It Wrong
- How To Stay Compliant
What Are W-2 and 1099 Forms?
Both forms report income received during the year. However they are used for very different circumstances.
A W-2 form gets sent to employees. It shows wages earned and all taxes withheld (federal income tax, Social Security, Medicare). The employer automatically withheld those amounts during the year.
A 1099 form is sent to contractors and freelancers. The most familiar one is called a 1099-NEC, which stands for nonemployee compensation. With a 1099 they don't withhold taxes at all. The contractor is responsible for paying it all themselves.
Here's why getting this right matters from day one...
Accuracy is not negotiable when it comes to W-2 and 1099 forms filing. Whether processing just a few contractors or hundreds of employees, this software solution handles the guesswork of generating, filing, and distributing both W-2s and 1099s correctly — freeing up time and eliminating expensive mistakes.
Who Gets Which Form?
This is where most businesses get tripped up.
The IRS Worker Classification Test evaluates three distinct factors. They are as follows:
- Behavioral control: Does the business control how the work is done?
- Financial control: Does the business control the financial aspects of the job?
- Relationship: Is there an ongoing relationship with benefits involved?
If everyone says yes... then that worker is most likely an employee that requires a W-2.
If the worker gets to set their own schedule, uses their own tools and equipment, and gets paid per project... chances are they are an independent contractor that requires a 1099-NEC.
Pretty straightforward, right?
Here are a few quick examples to make it clear:
W-2 employees typically include:
- Office workers with set hours
- Retail and restaurant staff
- Healthcare workers in hospitals
- Government employees
1099 contractors typically include:
- Freelance designers and writers
- Independent consultants
- IT contractors brought in per project
- Tradespeople hired for one-off jobs
With over 36% of the US workforce now freelancing — that's over 70 million Americans — understanding the 1099 side of things has never been more important.
The Big Tax Differences
This is the part that catches a lot of people off guard.
When it comes to W-2 employees, the employer handles payroll taxes. This includes withholding federal income tax, state income tax, and paying half of the FICA tax (Social Security and Medicare taxes) while the employee pays the other half.
For 1099 contractors, it is a completely different story.
Taxes aren't automatically withheld from their paycheck. Instead, they pay estimated quarterly taxes directly to the IRS.
What's more, the self-employment tax sits at 15.3% — twice as much as what a W-2 employee pays. Why? Because 1099 workers pay both the employer and employee portion of Social Security and Medicare taxes.
Granted, 1099 workers have one benefit. Many of their work-related expenses are deductible on Schedule C. This includes home office expenses, equipment, software, mileage, etc. These write-offs lower taxable income, partially negating that higher rate.
It balances out for many contractors — but only if they track everything properly.
Filing Deadlines You Cannot Miss
Missing these deadlines comes with real penalties. So mark the calendar.
January 31 is the IRS deadline for W-2 and 1099-NEC forms.
Here is what needs to happen by that date:
- Deliver copies to employees and contractors
- Submit W-2 copies to the Social Security Administration
- Submit 1099-NEC copies to the IRS (March 31 if filing electronically)
One final 1099-NEC tidbit... File a form for any contractor paid $600 or more. In 2026, the minimum increases to $2,000 per new law. Regardless, keep records of contractor payments all year long — not just January.
The Real Cost of Getting It Wrong
Misclassifying workers is not just a paperwork problem. It is a financial one.
Misclassification is taken very seriously by the IRS. When a company willfully misclassifies employees as contractors to evade paying payroll taxes, the penalties stack up fast:
- $60 per form for W-2s filed within 30 days of the deadline
- $130 per form after 30 days but before August 1
- $330 per form if filed after August 1
- Back taxes, interest, and additional FICA penalties on top of all of that
And the IRS typically goes back three years when auditing unpaid employment taxes.
See: New AI Minister Prioritizes Growth Over Rules
The silver lining? If there is genuine uncertainty about whether a worker is a W-2 employee or a 1099 contractor, businesses can file Form SS-8 and let the IRS make the call.
How To Stay Compliant
Staying compliant with W-2 and 1099 forms filing does not have to be stressful.
Here is a simple process to follow:
- Collect W-9 forms from every contractor before the first payment
- Track all contractor payments throughout the year in real time
- Review worker classification annually using the IRS three-part test
- File on time — both January 31 and the SSA/IRS submission deadlines
- Use the right tools to generate accurate forms at scale
The biggest mistake businesses make is waiting until January. By January it is a frenzy. Start with a clean system and tax season is a non-event.
Tying It All Together
When it comes to W-2 and 1099 forms filing, there's really only one question. How is the worker classified?
W-2 employees receive W-2 forms. 1099 contractors receive 1099-NEC forms. The taxes, deadlines, and penalties are entirely different.
To quickly recap what matters most:
- W-2 = employer withholds taxes, employee gets benefits and protections
- 1099 = contractor manages their own taxes, pays 15.3% self-employment tax
- Both forms are due to recipients by January 31 each year
- Misclassification carries serious IRS penalties going back three years
- When in doubt, file Form SS-8 for an official IRS determination
Classify properly, stay ahead of deadlines, and implement with the correct toolset. Those are the only things needed to stay clean and compliant year after year.
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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UK Private Markets Add Liquidity Canada Still Lags
Apr 20, 2026 | NCFA Insight | Capital Markets And Funding, Regulation And Policy
Crowdcube Expands Secondary While Canada Stays Primary
On April 15, 2026, Europe’s largest private market investment platform Crowdcube outlined a full menu of primary and secondary options. Investors can now fund companies and sell private company shares through the same platform. So the equity crowdfunding story is not only about raising capital, but also about what happens after the raise.
In the UK, a non public company can now structure a raise in three ways.
- It can run a primary round to bring in new capital.
- It can run a secondary share sale to give existing shareholders liquidity.
- It can also combine both in one transaction.
It can then choose how to execute the transaction, either through Crowdcube for retail participation, through the London Stock Exchange’s PISCES private market for institutional access, or through both at the same time.
See: How Fintechs Are Unlocking Value in Private Markets 2024
Here’s a recent example outlining how this works in practice. Crowdcube says Chip completed a £11 million transaction. That total included £8.9 million in primary capital and £2.1 million in secondary sales. In other words, the company raised new funds while giving early investors and employees a chance to sell part of their holdings.
This applies to private company shares held by retail and early investors, not publicly listed equities.
How Canada's Model Limits Liquidity
Canada isn't starting from zero. Platforms such as Hiive support pre IPO private share transactions for qualified buyers and sellers under exempt market rules. That means Canada does have private secondaries, but not a broad, regulated system for intermittent trading of private company shares.
The better comparison is Hiive versus PISCES. Canada has exempt private secondary platforms where transactions are negotiated, access is limited, and liquidity is episodic. The UK is moving toward a regulated framework where private company shares can trade through repeatable windows on approved venues, with more standardized access and price discovery.
As a result, platforms haven't developed structured secondary liquidity in the same way, and investors often wait for a later financing, an acquisition, or a public listing to exit. That delay has real effects.
When investors know they may be locked in for years, fewer participate and those who do often invest smaller amounts. That reduces momentum in early rounds.
It also limits how quickly capital can recycle into new companies, since returns stay tied up until a major exit.
See: Insights and Challenges of Raising Capital via Reg A+
For founders, it creates pressure to deliver a large liquidity event instead of offering smaller, earlier opportunities for partial exits. It also makes it harder to use equity as a tool to attract and retain talent, since employees may not see a clear path to liquidity. Over time, this slows the overall flow of capital through the ecosystem.
This can also affect upside. When early investors and employees have limited options to realize value while a company remains private, pressure builds toward a full exit. That can lead some companies to sell earlier than they otherwise might, which may limit how much value is created over the longer term.
Why The UK Model Feels Different
Meanwhile, the UK is building a different approach. In August 2025, the Financial Conduct Authority approved the London Stock Exchange to operate PISCES, a regulated venue for intermittent trading of private company shares.
Unlike a public market, PISCES uses scheduled trading windows instead of continuous listing. It is also designed to bridge private and public markets, as outlined in NCFA’s breakdown of the PISCES framework. Transactions routed through PISCES can reach institutional buyers and settle on exchange infrastructure. Stamp duty exemption also reduces costs for sellers.
Simply put, a UK private company can now raise capital, provide partial liquidity, and choose the investor mix in one coordinated process.
By contrast, a Canadian company using investment crowdfunding still focuses on raising capital first. Liquidity comes later, if it comes at all.
This Difference Matters
When investors can see a path to liquidity, they’re more willing to participate earlier. When founders can offer partial exits, they can manage employee and early-investor expectations more effectively. And when capital can recycle, the market compounds faster.
See: Equity Crowdfunding Breaks Records in Canada
Access to private markets was the first step. Liquidity is the next one. Platforms that support both can attract more liquidity and better manage how early-stage capital forms and flows.
Conclusion
UK platforms are building liquidity into private markets at the point of fundraising. Canada still focuses just on the raise. A practical next step in Canada would be to pilot regulated secondary trading windows for private shares under existing frameworks such as National Instrument 45-110. Regulators could test those windows under controlled conditions and measure how they affect liquidity without increasing unwanted risk. That would give investors a clearer path to exit, help founders manage early shareholders, and let capital recycle more efficiently across the ecosystem.
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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