Category Archives: Entrepreneurs, Start-ups, Small Businesses

To be, or not to be, a Prompt Engineer

Forbes | Craig S. Smith | Apr 5, 2023

Midjourney, the new reality

Image: Midjourney

A new career is emerging with the spread of generative AI applications like ChatGPT: prompt engineering, the art (not science) of crafting effective instructions for AI models.

  • What is prompt Engineering? Getting generative AI to do what you want is no easy task, as anyone who has tried image generation systems like Dalle-E or MidJourney or language models like ChatGPT. While successful creations are dazzling, an untrained user’s results are likely to be deeply flawed or, with ChatGPT, even wrong. The same is true for AI code-writing generators.
    • That may be a bit of big tech hyperbole, but there’s no doubt that prompt engineers will become the wizards of the AI world, coaxing and guiding AI models into generating content that is not only relevant but also coherent and consistent with the desired output.
    • Why so difficult?  That’s because generative AI models respond to natural language and natural language is notoriously imprecise. The same sentence can have different meanings depending on the context, making it difficult for the AI model to understand what the user wants it to generate.
    • Natural language prompts may not provide enough context for the AI to understand the user's intent fully. This can lead to the AI generating responses that are not relevant to the user's needs or expectations.
    • Generative AI models are typically trained on large amounts of text data, but the training data may not contain examples that match the specific intent of the user's prompt

See:  Yuval Harari Warns That Civilization’s ‘Master key’ is at Stake With the Rise of A.I.

  • Impact:
    • Already, prompt engineering experts are popping up all over the place, startups are offering prompt engineering services and companies are starting to list ‘prompt engineer’ as a job title.
    • With the increasing sophistication of AI algorithms, the role of software engineers will evolve into one of guiding and overseeing the AI's work, providing input and feedback, and ensuring that the generated code meets the project's requirements.
    • We are seeing the compilation of prompt libraries, like libraries of pre-written code or software components that can be reused in different applications.
    • There is a flood of startups /new tools to help engineer prompts, including PromptPerfect and PromptingGuide. Online schools are beginning to offer courses in prompting and PromptBase is an online marketplace for buying and selling high-quality prompts. The list will undoubtedly grow.

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NCFA Jan 2018 resizeThe 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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As the Gig Economy Silently Takes Over Industries, Some Experts are Calling for Regulation

New York Times Magazine | | Apr 13, 2023

Unsplash – sarandy westfall, man on beach

Image: Unsplash/sarandy westfall

When Your Boss Is an App

  • The gig economy has been growing rapidly in recent years, with more and more people turning to freelance work and gig jobs. While gig work can offer greater flexibility and autonomy, many gig workers face precarious working conditions, with low pay, no benefits, and no job security. In response to these challenges, a new generation of apps and platforms are emerging that aim to offer gig workers better pay, benefits, and protections.
  • One such app is Upwork, which connects freelancers with clients and offers them tools and resources to manage their work. Another is Steady, which helps gig workers find jobs and benefits, such as health insurance and retirement savings plans. Meanwhile, platforms like Uber and Lyft are beginning to offer drivers more benefits and protections, such as sick leave and minimum wage guarantees.

See:  Adjusting to the new Labour Market

  • Despite these developments, many gig workers continue to face challenges and uncertainty, including unpredictable work schedules, difficulty accessing benefits, and the threat of job loss. To address these issues, some experts are calling for greater regulation of the gig economy, including the introduction of minimum wage laws, health and safety protections, and benefits requirements.
  • Overall, the gig economy is likely to continue growing, driven by the desire for flexibility and autonomy among workers and the demand for cheaper, more flexible labor by businesses. However, it remains to be seen whether gig work can be made more secure and sustainable, or whether it will continue to leave many workers in precarious and insecure positions.

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NCFA Jan 2018 resizeThe 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

NCFA Financial Innovation MapNCFA Innovation Opportunity BriefsNCFA Fintech Insights
NCFA Fintech WhispererNCFA Fintech Fridays PodcastNCFA Weekly Newsletter

 

An In-Depth Guide To Finance Automation

April 14, 2023

Concept of the corporate business transformation

Image: Adobe Stock

Finance automation is the implementation of specific technology solutions to perform recurring and time-intensive financial operations like data entry. It's becoming increasingly popular in business. Many organizations invest in digitization, especially finance, to ensure cheaper and more intelligent outputs.

Ideally, finance automation drives workflow optimization. You can streamline as many tasks as possible while maintaining agility and quality. That said, this article takes a closer look at financial process automation and how you can apply this in your business,

Technologies Used In Finance Automation

Finance automation may incorporate the following technology solutions:

Robotic Process Automation (RPA)

RPA is a rule-driven method that uses software bots to execute repetitive and rule-based tasks. Particularly, RPA finance meaning is the adoption of robotic applications to reinforce manual efforts in the finance department.

Notably, with RPA software, businesses can automate various digital tasks in finance. This automation includes invoice processing, account opening, tax reporting, loan processing and reconciliations.

Machine Learning (ML)

ML algorithms analyze historical data, investigate patterns and provide relevant insights for better decision-making. The good thing is that you can integrate ML with RPA for better results.

For example, suppose you're using RPA to process customer payments. ML can forecast the likelihood that clients will make timely payments.

Artificial Intelligence (AI)

Artificial intelligence has the ability of computer-controlled robots to mimic a human's decision-making and problem-solving capabilities. While RPA uses logic and structured data, AI develops its logic and uses unstructured data to automate end-to-end. AI is significant in RPA as it processes and converts data into a structured form for RPA bots to understand.

Most importantly, when implementing your finance automation solution, you'd want to work with a well-trusted IT services provider with a proven track record. For example, you can partner with IT companies like Outsource Solutions Group for broad-spectrum technology services and end-to-end support.

You gain access to the already-available IT resources with an outsourced IT provider and leverage the expertise of IT professionals. These professionals can help you improve efficiency and achieve your business goals.

How To Automate Financial Processes

Below are the main steps to automate your financial processes:

AdobeStock_580703258

Image: Adobe Stock

1. Identify Potential Financial Processes That Needs Automating

Firstly, you should determine the financial processes that need digitizing. Ideally, these tasks should be repetitive, employ structured inputs, be time-sensitive and have performance rules and procedures. Here are some processes you should consider automating:

  • Accounts Payable: Finance automation ensures you pay all your debts on time. Invoice processing, coding, approval and payment are some accounts payable tasks you can automate.
  • Payroll: You'd want an enterprise resource planning (ERP) system that integrates finance automation. It lets you automatically enter team member data into the system, set different wages and rates, audit schedules and calculate deductions. Also, you can digitize how often the payroll is processed.
  • Accounts Receivable: That includes automatic invoice generation and sending customers automated overdue payment reminders. Also, you can automate the processing of customers' credit card payments.
  • Account Reconciliations: Financial automation can identify discrepancies between internal and external financial documents. This way, managers can take the necessary actions to reconcile accounts.

Automating these processes is best to ensure value-added financial work.

2. Work On A Digital Workflow

You can use software to customize your financial workflow digitally. Customization enables you to eliminate any steps that don't contribute to the intended outcome.

3. Test The Automation Solution

Before deployment, it's essential to test the software solution to ascertain whether it can execute specific financial processes efficiently. Downtimes, the time to complete a task and output quality are some aspects automation can check.

4. Deploy The Software

If the automation solution runs efficiently, you can deploy it across your financial processes. Also, it's crucial to communicate the changes to your team and inform them of what they're responsible for. This extra step ensures a smooth transition and will help you achieve your goals faster and more efficiently.

Benefits Of Finance Automation

Finance automation empowers teams in the workplace. Ideally, when you eliminate tedious and time-consuming work such as manual data entry, you free your financial team to focus on strategy. The following are the benefits of automating your financial processes:

  • It reduces operational costs as it eliminates the need to hire workers to perform time-consuming financial tasks manually
  • It ensures higher accuracy as it reduces errors associated with manual approaches
  • It ensures consistency since computers execute similar processes the same way every time

See:  Human vs Machine’s Tug-of-War: Stockmarket Automation Lessons

Most importantly, concentrating on high-level strategic processes can help turn available data into actionable insights and offer more efficient business solutions.

Conclusion

Automating financial processes using technologies such as RPA can significantly add value to your finance workflow. Above is an in-depth guide to finance automation. Also, it's best to choose a trustworthy software vendor to ensure efficient implementation. This way, you can remain competitive and steer your business to digitally-enabled growth.


NCFA Jan 2018 resizeThe 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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5 Financial And Tech Considerations For A New Business

April 13, 2023

Glass glowing light bulb and business sketched ideas

Image: Adobe Stock

Starting a new business can be both exciting and stressful. With your new venture, you can begin to showcase your products or services and earn a living, but you also need to learn how the business world works to ensure it grows with time. In any case, you need to know more about the different business structures and determine which one fits you well. Also, it would help to plan as much as possible before starting your own business. It includes conducting market research, finding funding options, and setting your marketing strategy.

Indeed, running a business takes a lot off your plate. There will be many things to consider. However, the most important considerations will be in the financial and technological aspects.

That said, here are some financial and technological considerations that new businesses ought to make.

Tech Considerations 

1. Vendors and Service Providers 

Your company is likely to use a variety of technologies to streamline operations. You can collaborate with various vendors and service providers to carry out your operations. However, it is essential to note that service providers differ. So, you must select one that meets your requirements and fits your company well.

Considering any service provider's experience and industry expertise is also critical. The greater the experience, the better. For example, if you are looking for a company that manufactures medical equipment, you can hire RBC Medical for device manufacturing or find comparable alternatives in your area.

2. Cybersecurity 

Given the increasing frequency of cyberattacks, business owners must implement cybersecurity strategies to protect their data. Although you can set up cyber defences for your business on your own, it is best to hire experts to assist you in establishing strong defences.

Experts can also assist you by providing cybersecurity awareness training to your employees. However, keep in mind that there are numerous other aspects of cybersecurity that you may overlook if you do it alone. That is why hiring a service provider like KDIT services consultants to create a cybersecurity strategy for you is prudent.

3. Password Management 

You will almost certainly use software and products that require password authentication. Passwords are an excellent way to increase the security of your systems. Employees will almost certainly need passwords to access various parts of your systems. However, it is important to note that weak passwords can pose a security risk.

Employees often set weak passwords out of fear of forgetting them. That, however, is not a good idea. If your passwords are too weak, hackers can get past your defences. As a result, it is critical to invest in a password manager to help keep your organization's passwords secure.

A password manager enables you to create strong passwords that hackers will find difficult to crack. Plus, they can allow you to reset passwords regularly. It would be best to urge your employees to use password managers for enhanced security. There are many options available. Choose one that works for you and fits your budget.

4. Document Management  

Your company is likely to handle a large number of documents. It includes invoices, receipts, purchase orders, proof of payments, legal service agreements, employee files, and other documentation. These documents must be properly stored following applicable compliance regulations.

You should look into ways to streamline document management through digital solutions such as cloud storage. Cloud storage is fantastic because abundant cloud storage is available, depending on the solution you select. You can access the documents anytime, and your team members can do the same.

Another document management solution is using online or e-signatures. E-signatures are becoming ever more popular because modern systems have been digitalized. There's no longer a need for you to sign documents physically. You can now sign and send documents digitally using several e-signature tools online. These make document signing much easier and faster.

5. Internet Speed And Reliability 

Fast internet is critical for business operations to run smoothly. Most businesses run their operations using connected devices and software. They can't afford slow internet speeds because it will affect more than employee productivity. But it can also affect the user experience (UX) if your company has online services. As a result, you must select a reputable service provider with fast internet speeds.

Financial Considerations 

Business team connect pieces of gears. Teamwork and integration concept

Image: Adobe Stock

1. Funding 

When starting a business, it's critical to consider how you'll fund your venture. Personal savings, small business loans, venture capital, and grants are all options for startups seeking funding. You need to identify and utilize the methods that are available to you.

2. Tax 

Taxation is an unavoidable part of running a business. If you're starting your own business, you should be aware of the tax laws and regulations that apply to you. Tax laws and regulations may differ between countries, regions, and states.

It is best not to approach taxation blindly or with assumptions, as you may be fined for failing to comply with tax laws. As a result, it's best to consult with a tax expert in your area about how you should account for and file taxes. Remember that you don't have to be a tax expert. Instead, hire someone who is.

3. Overhead Costs 

Running a business will undoubtedly incur overhead costs. Rent, rates, wages, manufacturing overheads, commissions, and tax are just a few of the fixed or variable expenses to consider. Whatever your cost structure is, you must keep expenses as low as possible.

You should spend money on things critical to your company's survival and growth. Then cut back on unnecessary expenditures that don't contribute to the bottom line.

It can be challenging to classify expenses. However, you should use your company's goals and objectives as a guide. You could also speak with your financial advisor.

4. Business Credit 

Before you start a business, you should consider how to build good credit. Credit ratings are a critical component of business financial management. The reason for this is that if and when you apply for business loans, you will need to have excellent credit. Good credit demonstrates to lenders that you are creditworthy and capable of repaying loans. Even if you never use a business line of credit, it is critical to develop credit management systems. You never know when you might need to use a credit line.

5. Cash Reserves 

Any business must have healthy cash flows to thrive. However, you must also have cash reserves in case of a rainy day. The business world is very unpredictable. You never know when a major client will back out of a transaction or when the economy will collapse. Keeping cash on hand in an emergency is always a good idea. It could help keep your company afloat. That is why, before launching your business, you should consider creating a savings plan.

Conclusion 

Starting a business is not easy. Because there are often numerous factors to consider, it is natural for anyone to find this process daunting. The best thing you can do in this position is to educate yourself on how your industry works. Understanding this can give you confidence.

See:  ARK Innovation Predictions and Big Ideas 2023

However, knowing your business's financial and technological aspects is also critical. How you handle these issues will significantly impact whether your venture is profitable in the long run. So, before you start your business, consider the above financial and technological considerations.


NCFA Jan 2018 resizeThe 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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NCFA Fintech WhispererNCFA Fintech Fridays PodcastNCFA Weekly Newsletter

 

HyperCycle: Paving the Way for a Groundbreaking Path to AGI

The Debrief | | Mar 27, 2023

HyperCycle Toufi Saliba and Dr. Ben Goertzel

Image: HyperCycle Toufi Saliba and Dr. Ben Goertzel

A new company called HyperCycle is enabling artificial intelligence systems to connect in an unprecedented fashion, allowing them to cooperate and compete at the smallest modular levels and bringing the world closer to–and ensuring a safer–global AI network.

  • The founder of HyperCycle, Toufi Saliba, says the ideas behind this potentially earth-changing undertaking are not new but have been growing for nearly a few decades amongst the world’s top computer scientists.
  • Artificial General Intelligence, AGI has become somewhat of Holy Grail for engineers and programmers working in the exciting yet controversial field of blockchain. That’s because, in its current form, blockchain offers a number of advantages, primarily in information and financial/transactional security, while also facing a wide range of real-world challenges.
  • Friction and cost challenge: Among the challenges of current blockchain systems (like cryptocurrency) are the massive amounts of friction as they have quickly become a third party in transactions.  “The friction in those interactions may not be significant for us humans, especially when you look at a single interaction. When two or more AI modules exchange values, they need the response A- Immediately and B- Without a cost that is comparable and sometimes higher than the value itself.”

See:  How Can We Improve Fighting Financial Crime With Artificial Intelligence?

  • Cooperative AI: “The internet of AI, aka cooperative AI, where AIs can cooperate at the smallest modular level, will introduce certain capabilities that are not currently provisioned, and certainly unprecedented,” said Saliba. “Imagine SIRI and Alexa both are cooperating behind the scenes to provide you with the best outcome.”
    • with TODA/IP and HyperCycle, the transactional “cost” is dramatically reduced by taking advantage of a decentralized approach, where individual AI systems can work together without having to go through a centralized server for each and every transaction.
    • Saliba and his co-founder, Dr. Goertzel, compare this to the neurons in a human brain working across connections as opposed to having to connect to a central part of the brain for each and every transaction.
  • It is this new approach to managing and transferring data packets across a global network that allows Toda/IP and HyperCycle to operate efficiently and at the individual transaction level, similar to the way individual neurons within the human brain operate. In effect, by sharding the data to the smallest packet while also maintaining backward compatibility, HyperCycle is building an infrastructure that essentially operates like [human brain] synapses.

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NCFA Jan 2018 resizeThe 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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NCFA Fintech WhispererNCFA Fintech Fridays PodcastNCFA Weekly Newsletter

 

Equity Crowdfunding Demystified: Insights from Wefunder and Equivesto

Forbes | Hessie Jones | Apr 3, 2023

Johnny Price Wefunder and Alexander Morsink Equivesto

Image: Johnny Price Wefunder and Alexander Morsink Equivesto

The time for startups to rethink venture capital alternatives has been gaining momentum.

  • Is this the moment for Equity Crowdfunding (ECF) to emerge and become a viable alternative for startups? For startups domiciled in Canada vs the United States, jurisdiction and laws vary when it comes to choosing equity crowdfunding platforms. Qualification, campaign execution and benefits can also be different. What should you consider when getting ready to do your first capital raise?
  • I reached out to two ECF platforms: Jonny Price, VP of Fundraising at Wefunder (US) and Alexander Morsink, Managing Partner at Equivesto (Canada) to understand these disparities but also demystify the many stereotypes associated with this emerging fundraising alternative.

See:  Australian Equity Crowdfunding Markets Raised $72 Million in 2022

  • The Legal Differences between Canada and the US
  • Morsink illustrates that the publicly known concept of equity crowd funding is an umbrella term used to describe different ways private companies can raise capital in Canada. Private companies raising capital in Canada use prospectus exemptions, which are legal doorways that any company raising must bring their potential shareholders through.
    • The first national ECF rules (NI 45-110 Startup Crowdfunding - similar to RegCF in the US) introduced in 2021 now allow companies raising capital to do so via an online investment platform.
    • Offering Memorandum exemption (part of NI 45-106) “which is similar to the Regulation A (US) still allows the company to raise from the general public in Canada, but at no maximum raise limit.” In Canada, this option requires private companies to have ongoing audited financial statements and annual reports filed to regulators where 45-110 does not.
    • “Accredited Investor” exemption allows high net worth individuals (HNW) to invest in private companies with no regulatory reporting.
    • “Equivesto uses multiple prospectus exemptions at the same time for one issuer, so while a deal on the platform will be listed as an ECF deal open to the public, Angel investors will use the ‘Accredited Investor’ exemption, not the NI45-110 ‘Startup Crowdfunding’ exemption, as the legal doorway to make the investment.”
  • Handling large number of investors?
    • Wefunder has a lead investor who signs on behalf of all investors via special purpose vehicle (SPV)
    • Equivesto recommends issuing a new class of non-voting shares and requiring investors to sign a voting trust agreement. Quarterly updates are recommended to keep investors engaged, and having many smaller investors can benefit the company by providing support and assistance in various ways.

See:  Equity Crowdfunding Growth: It Took UK Seedrs 8 Years to Raise the First £1Billion and Only 2 Years for the Next Billion

  • Social media is good for ECF because it reaches a lot of people and makes it easy to keep records, but scammers can use it to trick people. How do Wefunder and Equivesto protect people from scams?
    • Wefunder and Equivesto both take measures to protect investors from fraudulent ventures in the ECF space, with Wefunder implementing fraud checks and offering features such as Lead Investors to provide signals for investors.
    • Equivesto complying with regulatory requirements including verifying company information, conducting background checks on directors, and requiring companies to certify information is truthful before making it available to investors. Companies raising via ECF in Canada must also adhere to strict guidelines when using social media and other platforms to promote their campaigns, and investors are subject to a KYC and suitability review to ensure they are aware of the riskiness of their investments.

Continue to the full article --> here


NCFA Jan 2018 resizeThe 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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NCFA Fintech WhispererNCFA Fintech Fridays PodcastNCFA Weekly Newsletter

 

NFX: A Founder’s Guide to Crafting Compelling Investor Updates in Tough Times

NFX | Apr 6, 2023

Unsplash – Andreas Klassen, man on mobile phone

Your communication style, especially during challenging times, says a lot about what kind of leader you are out on the battlefield – and your investor updates will be a leading indicator of your success.

  • An exceptional founder can often be identified by their communication rituals, which are evident in their interactions with their teams, customers, and investors. Learning to send world-class investor updates is one of the most valuable rituals that can be adopted.
    • Effective communication is crucial because the right investors can be powerful allies, but only if trust is built through clear communication during good times and even more so during challenging times. Therefore, mastering the art of communication can greatly benefit a founder's success.
  • In late March 2023, NFX surveyed 870+ founders in our broader network (not necessarily NFX portfolio companies) to find out how they were doing after the SVB banking crisis, and in the downturn more generally. That data reveals the communication habits of seed-stage founders who have raised $1M or more:
    • 60% communicate with their investors monthly.
    • 21% say they communicate weekly.
    • 3% communicate daily.
    • And 16% only communicate with their investors on a quarterly basis.

See:  How Top CEOs Set the Stage for Growth

  • Common mistakes when updating founders:
    • #1 Don't go AWOL:  You’d be surprised by how many founders get too busy to update their investors, and then turn up asking for money when their backs are against a wall.  Radio silence gives investors time to ruminate, or wonder why [they] are not hearing from you. [They] will assume the worst if they don’t hear anything. Blindspots breed mistrust.
    • #2 Don't sit on bad news: Communicate swiftly and honestly, especially when something bad happens.  Don’t be afraid to seek feedback.  It’s highly possible that your investors will eventually learn, either by deduction or from someone else in their network, that something is amiss. Make sure they hear it from you first.
    • #3 Not having a good investor template: having a template brings you incredible speed. You don’t need to reinvent the wheel for each update.
      • Executive summary:  highlights, lowlights, KPIs, requests, runway
      • Main update: All KPIs, achievements, challenges, asks, plans
      • Nice to have's (depending): new key hires, notable news, thanks
    • #4 Not having enough data
    • #5 Not acknowledging feedback: When your investors give you feedback, make it a priority. Even if you disagree with it, acknowledge it, deal with it fast, or at least set expectations around when you will deal with it.

Continue to the full article --> here


NCFA Jan 2018 resizeThe 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

NCFA Financial Innovation MapNCFA Innovation Opportunity BriefsNCFA Fintech Insights
NCFA Fintech WhispererNCFA Fintech Fridays PodcastNCFA Weekly Newsletter