Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Category Archives: Entrepreneurs, Start-ups, Small Businesses
Zuckerberg to Replace Mid-Level Engineers by 2025
AI | Jan 14, 2025
Image: Freepik/DC Studio
Mark Zuckerberg Announced the Ability to Automate Mid-level Engineering Roles at Meta by 2025
Job automation has been going on for decades but Mark Zuckerberg just doubled down on an episode of Joe Rogan's Experience podcast when he announced plans to automate mid-level engineering roles at Meta some time in 2025. Of course if Meta is doing this then so will all the other companies working on AI will too. That is, AI systems will autonomously soon write code that could become operational, they would effectively update and maintain it too.
🚨 Mark Zuckerberg on the Joe Rogan podcast
in 2025, AI systems at Meta and other companies will be capable of writing code like mid-level engineers.
at first, it's costly, but the systems will become more efficient as time passes.
eventually, AI engineers will build most of… pic.twitter.com/iJtJqgXm19
— Haider. (@slow_developer) January 10, 2025
The dominoes are starting to fall, raising near term practical questions about the future of work and its impact on human employees. Some countries like the UK and Canada with declining growth and aging populations are looking to AI to increase productivity. Companies are starting to launch their own AI agents like Salesforce's Agentforce to innovate and boost growth/productivity while reducing operational costs. Or Moody's who have integrated AI as 'digital colleagues' through a multi-agent system whose AI agents automate processes such as financial risk analysis, PESTLE assessments, and credit evaluations saving them a ton of time while freeing up human decision-makers to focus on strategic initiatives.
Some Financial Jobs at Risk from AI
AI's ability to replace or completely transform traditional jobs goes far beyond coding. In the financial sector, many roles rely on repetitive, data-driven tasks which are of course at high risk.
See: AI, Funding Shifts and Regulatory Hurdles in Fintech 2024
We asked AI to help predict and rank the financial jobs that it thinks AI will replace, when it will replace it and it's impact on an 'evolved human role' in the broader task. The results are in the table below.
| # | Financial Job | Tasks Performed | AI Replacing 25% by | AI Replacing 50% by | Max AI Adoption by (% & Year) | Evolved Human Role |
|---|---|---|---|---|---|---|
| 1 | Customer Service Reps | Resolving client inquiries and account management | 2024 | 2028 | 80% by 2035 | Managing complex queries, providing empathy and judgment |
| 2 | Bank Tellers & Clerks | Handling deposits, withdrawals, and customer service | 2025 | 2030 | 75% by 2035 | Focusing on personalized customer relationships |
| 3 | Insurance Underwriters | Risk assessment and premium calculation | 2025 | 2030 | 90% by 2035 | Overseeing edge cases and refining AI decision models |
| 4 | Loan Officers | Evaluating creditworthiness and loan approvals | 2026 | 2030 | 85% by 2035 | Managing exceptions and building client trust |
| 5 | Trading Desk Operators | Executing trades and monitoring markets | 2025 | 2029 | 95% by 2035 | Strategic decision-making and managing high-stakes trades |
| 6 | Accountants & Auditors | Preparing financial reports and auditing | 2026 | 2031 | 85% by 2035 | Conducting complex audits and interpreting nuanced results |
| 7 | Fraud Analysts | Fraud detection and transaction monitoring | 2026 | 2031 | 90% by 2035 | Investigating sophisticated fraud patterns |
| 8 | Compliance Officers | Ensuring regulatory compliance | 2027 | 2032 | 80% by 2035 | Interpreting regulatory changes and handling unique cases |
| 9 | Financial Analysts | Data analysis, forecasting, and reporting | 2027 | 2032 | 85% by 2035 | Providing strategic insights and interpreting AI findings |
| 10 | Financial Advisors | Portfolio management and investment advice | 2028 | 2033 | 70% by 2035 | Building personal client relationships and complex planning |
Preparing for the new Digital Workforce and Human Collaboration
As artificial intelligence because more and more integrated into core business operations, fintech companies need to rethink strategies and prepare for a blends AI with human capabilities. Success will depend on setting clear objectives, embedding ethical practices, and fostering collaboration to create what can be called a 'bionic fintech' era, an integrated partnership with human creativity and AI's precision and speed.
1. Define Your AI Priorities (where AI delivers the biggest win)
Fintechs must evaluate their business models and identify the processes and services that will benefit the most from AI integration. For example, payment processors can use AI to improve fraud detection and optimize transaction speeds while wealth tech platforms could use AI to deliver personalized financial advice and enhance customer service.
See: How Real-Time Agentic AI Will Boost Fintechs
By clearly defining these priorities, companies can ensure their AI investments are aligned with meaningful goals and provide measurable value over time.
2. Start Small but Dream Big! Scale AI Without the Risk
Implementing AI doesn't have to be a huge gamble. Start by launching a strategic yet small pilot project in a high priority area such as compliance automation or risk assessment where potential solutions can be tested and refined before wider deployment. Platforms such as AWS AI/ML Solutions or Google Cloud AI can provide the tools needed to experiment. Then expand AI capabilities as new processes prove successful, reducing the risk of large-scale failures.
3. Commit to Responsible AI (given that AI needs a moral compass)
A trustworthy AI system can only be built on an ethical foundation. Companies must prioritize transparency, accountability, and compliance with regulations to build AI systems that are trusted with confidence. Frameworks like the UK's Data Ethics Framework can serve as a guide to help fintechs avoid bias/risks and develop AI systems that are both effective and socially responsible.
4. Redefine Human Superpowers and Prepare Team for Success
Make sure people understand that while AI is great at handling repetitive, data heavy tasks, humans are necessary for creativity, empathy, and ethical oversight. As AI eventually takes over routine tasks, humans can manage these systems, tweak strategies, and work on complicated challenges that machines can't resolve. Human ingenuity is sill at the top of the food chain (for now anyways)!
See: Musk Says Human Data for AI Training is Depleted
Companies must provide the necessary up-skilling and training programs on AI, data literacy, and problem-solving to teach employees how to effectively work with AI systems and generate high value outputs. Given the right tools and training, employees should be able to trouble shoot exceptions and better understand nuanced findings. Creating an environment that encourages learning and adaptability ensures employees remain relevant and capable in this changing landscape.
5. Integrate AI into Workplace Culture
AI needs to become part of the new culture, so it needs to be welcomed and be part of the team. Fintechs should define clear roles for AI systems and have them complement human roles. Recognizing AI and celebrating milestones can actually help employees see AI more as a partner than a threat, which builds up trust and collaboration instead of animosity.
See: How AI is Revolutionizing Fintech
Companies should create an environment that encourages learning and adaptability. Innovation thrives on partnerships. By working with AI startups, academic institutions, and industry groups, fintechs can tap into new technologies and ideas. These collaborations can create a culture of experimentation, helping organizations to embrace innovative solutions that keep them ahead of their competition.
6. Create a Feedback Loop for Continuous Improvement
Do not just let AI systems operate on autopilot. Establish real-time tracking metrics, such as cost savings, efficiency improvements, and customer satisfaction to monitor for high quality outputs, ethics, and adapt to changing needs. Conduct regular audits including by third parties to keep AI aligned with your priorities and business goals to ensure longer term effectiveness.
Outlook
Meta just announced plans to cut about 5% of its workforce targeting under performing employees, as part of a continual effort to improve efficiency in the age of AI.Both companies and employees should prepare for major changes that AI will bring. Meta's setting the stage to replace mid-level engineers by 2025, will you be ready?
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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Float Raises $70M Series B to Innovate Business Finance
Funding | Jan 14, 2025
Image courtesy of AI
Float Financial Raises $70 Million Led by Goldman Sach's Growth Equity
Yesterday, Toronto fintech, Float Financial announced that they signed a CAD $70 million Series B funding round led by Goldman Sachs’ Growth Equity at Goldman Sachs Alternatives. Other participating investors in this Series B include OMERS Ventures, FJ Labs, Teralys, and Garage Capital. Use of proceeds from this Series B will be allocated to drive product innovation, attract top talent, and expand to markets across Canada.
Clare Greenan, Investor with Growth Equity at Goldman Sachs Alternatives:
“Float’s impressive growth so early on is a testament to its Canadian focus, customer-centric platform and deeply committed team,”
Key Insights
1. Robust Funding and Strong Financial Growth Metrics
Float financial raised USD $30 million Series A (approx CAD $43M using historical forex rates) in November 21, followed by another CAD $50 million credit facility announced in February 2024. Combined with this latest CAD $70 million Series B brings total funding of approx CAD $163 million to date.
According to the release, since its November 2021 Series A, Float has grown like gang busters:
-
- 45x growth in total payment volume (TPV)
- 50x increase in revenue
- 30x growth in assets under management (AUM)
- 140x expansion in credit issuance
Float also has 4,000 Canadian businesses using their financial tools to simply financial operations including companies such as Jane Software, LumiQ, and Knix (remember Knix was a crowdfunding success way back in the day).
2. Expanding Product Suite
In 2024, Float expanded its offerings to include:
See: Loop & EQ Bank Launch Multi-Currency Card for Canadian SMEs
-
- Corporate cards in CAD and USD
- High-yield accounts
- Next-day fund transfers and payments
Tools for automating accounts payable and expense management
3. Growth Vision
Rob Khazzam, Float Financial CEO:
“Our financial system needs to match the speed and ambition of Canadian businesses if we want to thrive locally and compete globally. Float’s mission is simple: cut through the red tape and give businesses the financial tools they need to move faster. To access more opportunities. And to do it all easily, with the click of a button,”
Outlook
With support from major investors like Goldman Sachs and impressive growth metrics and vision, Float Financial's latest CAD $70 million Series B reflects the increasing demand for modern financial tools that are tailored for business and niche needs in a rapidly evolving fintech market.
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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Founder Salaries: Insights from Europe, U.S., and Canada
Salary Report | Jan 13, 2025
Image: European Median Salaries By Stage 2023 vs 2024 (Creandum Compensation report 3.0)
What Startup Founders Really Earn: Lessons from Creandum and Insights for Canada
Have you ever had the task of determining how much to pay yourself? Well it's a key question that Startup founders face around the globe who must balance the company's growth (and runway) with a founder's personal compensation needs and sustainability. Creamdum recently published their third annual Founder Compensation 2024 report based on responses from nearly 700 founders at various development stages from bootstrap to Series B.
See: The Rise and Implications of a New AI Software Workforce
The report finds that 2024 startups have given themselves a pay increase due to being in a more stable position, post covid pandemic. Some sectors like climate tech and healthtech are thriving but regional differences, gender pay and equity dilution are still key topics. This article breaks down some of the data to serve as practical benchmarks for founders and boards to make informed decisions around compensation.
Creandum’s 2024 Survey of Salaries in Europe
1. Founder Salaries Increased Across Nearly Every Stage
- Bootstraped founder median salaries doubled from €15,000 to €30,000 (that's a significant hike!)
- Pre-seed is up 37% from €35,000 to €48,000.
- Seed increased a bit and is now at €85,000.
- Series A didn't change given slower growth in funding rounds. €120,000
- Series B grew 13% with median salary reaching €159,000 and total compensation with bonuses almost €200,000.
For many early stage company founders their salaries are closely tied to funding milestones.
2. Bonuses Are Back
Performance bonuses help founders stretch their rewards without overextending base salaries.
See: Canada’s $300M AI Funding Targets SMEs for Growth
- Bootstrapped founder bonuses represent 26% of total pay, boosting total compensation by 138%.
- Meanwhile only 5% of pre-seed founders receive bonuses at this stage.
- 24% of Series B founders get bonuses based on their performance targets and milestones.
3. Regional Pay Differences
Founder pay across Europe varies significantly.
- France jumped a whopping 60% from 2023 to €124,000 and are now near the top paid in the region.
- UK founders pay €107,000 which is a decline from last year given shifting regional competitiveness.
- Nordics €100,000 (steadily increasing due to strong tech funding).
- DACH (Germany, Austria, Switzerland) get paid €95,000.
- Southern Europe is €70,000, quite a bit lower due to limited funding pools and lower cost of living.
- Baltic countries (Latvia, Lithuania, Estonia) highest paid founders in Europe due to Estonia's tech boom and entrepreneurial talent including influx from Russia.
4. Change in Sector Trends
For the past two years, Fintech founders were the highest earners however now in 2024, Climate Tech and Health Tech founders have taken the lead at later stages with large funding increases.
See: Green Fintech 2.0 Shows Progress in the UK
Climate Tech raised €7.7 billion in equity funding as of H1 2024 while Health Tech raised $2 billion in Q3 2024 alone. Both of these sectors require major upfront investments which translate to higher founder pay as these companies mature.
5. Gender Pay Gap is Shrinking but Challenges Remain
- Bootstrap female founders earn just 3% less than male founders.
- At Pre-seed the largest gender pay gap exists with women earning 23% less than men.
- Seed and Series A female founders actually earn MORE than male founders (report does not express exact percentages)
- Series B female founders get paid 13% less than their counterparts.
- One of the major challenges is just representation given that male founders outnumber female founders 6:1
Comparing Europe, the U.S., and Canada
- The U.S. consistently leads globally in founder pay across all stages due to its larger funding ecosystem and higher valuations.
- Europe compensation follows the U.S. but varies widely by region.
- Canada trails Europe and the U.S. with founder pay aligned to smaller funding pools. Founders should push for more funding options and stronger policies to attract investment.
See: What Toronto Can Learn from Tel Aviv’s Start-Up Scene
| Stage | U.S. (USD) | Canada (USD) | Europe (USD) |
|---|---|---|---|
| Bootstrap | N/A | $29,600 | $31,579 |
| Pre-Seed | $50,000 | $44,400 | $52,632 |
| Seed | $133,000 | $59,200 | $89,474 |
| Series A | $183,000 | $81,400 | $126,316 |
| Series B | $218,000 | $111,000 | $167,368 |
Notes:
Figures below are all expressed in USD for an apples to apples comparison.
US salaries from Kruze Consulting CEO salary report
Canadian salaries from Talent.com and Glassdoor
European salaries from Creandum's 2024 salary report
Equity Trends You Need to Know
Image from Creandum Compensation 3.0 report
1. One of the biggest drivers of dilution is the number of co-founders in a company, regardless of stage.
- For example, solo founders hold onto about 80% equity during the early years of a startup but that drops to 30% equity by Series B.
- Then compare that with a venture with five co-founders, by the time Series B rolls around individual co-founders retain often less than 7% equity.
- Having said that, multiple co-founders can also bring diverse skill.
2. Founders of bootstrapped companies keep a larger share with a median of 44% equity.
- This is common sense since this type of company trades off slower growth for more control.
3. Equity dilutes with each funding round.
- For example, founders typically still retain about 20-25% equity at Series A but that drops to 10-15% by Series B. The trade off here is ownership versus the need to secure growth capital
Closing Thought
Founders have been through a lot with covid, geopolitical risks, and economic stability. The 2024 Creandum compensation 3.0 report clearly shows key compensation trends including rising startup founder salaries, return of bonus incentives, and regional/sector trends.
See:
UK Banking Competition Remedies, Lessons for Fintech Growth
BoE Report: Open Banking Boosts Productivity, Competition
Higher startup CEO salaries are driven by ecosystem strength. Canadian founders should learn from the U.S. and other regions by addressing funding gaps and advocating for stronger policies that strengthen the local ecosytem, attract investment, attract/retain top talent, and make Canadian companies more competitive on the global stage. Want to learn more? Checkout Creandum’s Compensation Calculator as a valuable resource to help align pay with funding stage and industry trends.
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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Book: The Law for Founders – Protecting Your Startup
NCFA Advisor Book | Jan 9, 2025
The Law for Founders by John Wires 💡 Essential Read for Every Canadian Entrepreneur
The National Crowdfunding & Fintech Association (NCFA) is thrilled to shine a spotlight on one of our founding members and esteemed advisors, John Wires (JW), as he launches a must read book for every Canadian entrepreneur, "The Law for Founders" or as we like to call it Founder Law. It's a toolkit to empower founders, entrepreneurs, and innovators to 'stick handle' the legal and strategic challenges involved with building a successful business.
About the Author
Author, John Wires
John Wires is a champion of innovation and seasoned Canadian corporate lawyer since 2013 (the year we met). JWs friendly, fair, and direct approach combined with a deep understanding of both the legal and entrepreneurial landscapes made him a cornerstone of the NCFA community in the early days. At that time, we learned that JW played in the Ontario Hockey League (OHL), a very high level of hockey. It taught him how to battle and compete to win. A trait that many high level athletes transfer into successful business careers and ventures. Since then, he's dedicated his career to helping entrepreneurs reduce legal risks, close successful deals, and build thriving companies in a multitude of high growth tech, e-commerce, and digital media sectors. Now, with Founder Law, he's sharing his expertise in an accessible and actionable format that promises to inspire and guide founders at ever stage of their journey.
Why This Book Matters
Entrepreneurs face countless challenges when launching and running their businesses. Unfortunately, many founders avoid key legal concerns until it’s too late, leading to costly mistakes. The Law for Founders is packed with practical legal advice tailored to the unique challenges of building and scaling a business in Canada, and is designed to equip founders with the tools they need to succeed.
What You’ll Learn
The Law for Founders dives deep into the critical topics that every founder must master, blending legal expertise with relatable stories and case studies:
- Choosing the right legal structure
- Raising capital and using holding companies
- Negotiating founder and shareholder agreements
- Securing intellectual property rights
- Hiring and firing employees
- Preparing for mergers, acquisitions, and exits
With nine chapters and 237 pages of insights, this book is a comprehensive resource for navigating the legal landscape of Canadian entrepreneurship.
Who Should Read This Book?
- Aspiring Founders > Gain confidence and clarity as you turn your idea into a revenue growing business.
- Startup Entrepreneurs > Learn about the legal complexities of early-stage ventures, from incorporation to employment law.
- Scaling Businesses > Protect your intellectual property, secure funding, and prepare for expansion or exit with the right legal strategies.
- Advisors and Business Professionals > Enhance your ability to support entrepreneurs by understanding their legal needs.
Special Discount for NCFA Readers
As a member of the NCFA's community, JW is offering a 25% discount on any digital version (PDF or EPUB) of the book. Simply use the code “NCFA” at checkout when you purchase:
- Buy Digital for $25
- Buy Paperback for $32.99
If you’re serious about building a successful business, The Law for Founders is a resource you can’t afford to miss. Grab your copy today, protect your vision, and take control of your entrepreneurial journey.
Buy the book with 25% discount code 'NCFA' --> Here
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, 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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2024 Investment Crowdfunding Ecosystem Report Insights
Investment Crowdfunding | Jan 4, 2025
Image: Investment Crowdfunding Ecosystem Report 2024, Crowdfund Capital Advsiors
CCA's 2024 Investment Crowdfunding Report Tells a Story of Resilience, Growth, and Transformation
Thanks to NCFA Advisor and Principal at Crowdfund Capital Advisors, Sherwood 'Woodie' Neiss for putting together and publishing the 2024 Investment Crowdfunding Ecosystem Report which is available for download at no charge. It's a mammoth task to track and analyze so much transactional data, year after year, so hats off and much credit where it's due.
This article draws on the data and insights from the report to keep you informed of the latest equity crowdfunding trends. In a high interest rate environment where traditional venture capital slowed, investment crowdfunding continued to forge new capital volumes while creating jobs and reinvesting billions (yes, that's billions) back into local economies in the U.S. the focus of the report.
See: CCA Policy Proposal to Expand Investment Crowdfunding
Sherwood Neiss, Principal of Crowdfund Capital Advisors:
"Crowdfunding isn’t just about raising money—it’s about fostering ecosystems of innovation, jobs, and intergenerational wealth."
Key Report Takeaways - Impact, Impact, Impact
1. Record Capital Raised
Equity Crowdfunding campaigns raised a total of $547 million in 2024, thanks to parallel offerings, which combine retail and accredited investor funding. Without parallel offerings, standalone Regulation Crowdfunding (RegCF) from retail investors only raised $375 million (down from it's peak of $554 million in 2021), continuing a 3 year slide. In our mind, equity crowdfunding always combined retail + accredited investors but parallel offerings makes strategic sense as they can tap into different networks with the appropriate exemptions.
2. Job Creation Soars
One statistic that jumps out is the impact that RegCF has had on job creation. In 2024, investment crowdfunding supported companies created 110,976 jobs which is a whopping 1625% increase from the 6,432 jobs that were generated from crowdfunding in 2016.
See: Public Market Challenges and Equity Crowdfunding Capital
The average crowdfunded company employs approx 10 people, which is also double the workforce size from earlier years. These businesses are small to medium sized enterprises (SMEs) that are often community-focused and reinvest in their growth locally creating a positive ripple effect in the economy.
3. Strong Valuation Growth
Investors are becoming more and more confident in crowdfunded businesses, as there are more and more success stories and a broader range of companies that are raising investment crowdfunding capital.
Pre-revenue startups that were crowdfunded, achieved an individual median valuation of $10 million, which has doubled from $5 million in 2016. Post-revenue companies achieved an individual median valuation of $20 million, demonstrating that scaling companies with proven revenue models attract greater interest in investment crowdfunding markets. These trends reflect the maturity of crowdfunding markets and the ability to facilitate capital for companies of all stages of development. See: Revolut’s Crowdfunding Success from Start-up to $45 Billion
4. Economic Ripple Effect
Crowdfunded businesses reinvested $26 billion back into the economy in 2024, according to the report. That's an astonishing figure but not entirely surprising given that many are local, community-based SMEs who understand organic growth and the need to reinvest in their communities and local economies.
See: How Fintechs Are Unlocking Value in Private Markets 2024
This reinvestment figure works out to a 10x economic multiplier. By way of comparison, we've been in many meetings where either government or philanthropic entities are seeking ROIs of up to 3x for their capital commitments. 10x ripple can make waves.
Investment Crowdfunding Trends
1. Parallel Offerings Maximize Dollars and Impact
The combination of parallel offering by raising capital via RegCF AND Rule 506(c) exemptions is a growing trends that allows companies to attract capital from both retail and accredited investors. It also streamlines their campaigns and messaging, and demonstrates how crowdfunding markets are evolving to meet the needs of all types of investors.
2. Flexible Funding Models
As original visioned, investment crowdfunding isn't just about 'equity offerings'. In fact in 2024, 32% of campaigns were structured as debt or revenue sharing agreements. Model flexibility offers a variety of businesses more ways to crowdfund while catering to varying investor preferences, and ensures there are options for a wide range of industries and companies of various sizes/types.
3. Capital Distribution Beyond Major VC Hubs
Equity Crowdfunding continues to break down geographic barriers. In 2024, over 53% of capital was invested outside traditional tech hubs like California, New York, and Massachusetts.
See: Corporate Venture Capital in Canada: Insights and Challenges
As access to capital is democratized, innovators and entrepreneurs in smaller cities and even rural areas are becoming empowered to brings their ideas to life, levelling the playing field while promoting innovation across the country.
4. Resilience and Long-Term Value
Crowdfunding capital is more resilient than traditional VC/PE capital, as it is stickier and their own capital invested for the right reasons which is often beyond pure profit and aligned to support innovation, a community venture or aligned value/purpose. With enough years behind its belt, investment crowdfunding capital is finally showing it's strength as a reliable alternative to traditional channels. And with a 10x multiplier ripple effect on local economies and job creation, it's long term value is evident in community development and economic growth.
Why It Matters
Investment Crowdfunding is not just about raising money but about connecting everyday investors with innovative businesses and creating ecosystems of growth. In 2024, crowdfunding proved its ability to democratize finance, empower entrepreneurs, and drive measurable economic impacts. For entrepreneurs, policymakers, and investors, the message is clear:
"Crowdfunding is a vital tool for raising capital and driving innovation and economic growth in today's inclusive economy."
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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Fiserv Acquires Payfare to Boost Gig Economy Solutions
Fintech M&A | Jan 2, 2025
Image: Freepik/rawpixel.com
Fiserv Acquires Payfare for CA$201.5M to Scale Gig Economy and Embedded Finance Capabilities Globally
Toronto-based financial tech firm specializing in earned wage access (EWA) and digital solutions for gig economy workers, Payfare Inc., announced that it has entered into a definitive agreement to be acquired by global fintech giant, Fiserv, for a total purchase price of CA$201.5 million in an all cash deal. The transaction is being structured as a court-approved plan of arrangement as per British Columbia’s Business Corporations Act and is expected to close in H1 2025 subject to shareholder and court approvals.
Payfare’s Focus and Value of the Gig Economy
Payfare is a recognized leader in workforce payments and digital banking tools for gig workers and partnerships with major gig economy platforms such as Uber and Lyft, processing millions of transactions annually that paid out wages faster and more efficiently than traditional payment structures, such as bi-weekly or monthly.
See: How Fintechs Are Tackling Financial Inclusion in Canada
In the U.S. alone, the gig economy employed 36% of the entire U.S. workforce or 59 million workers in 2021 and is projected to reach $455 billion globally by 2025. Payfare’s tools address critical needs in this rapidly growing sector, making it a valuable asset for Fiserv.
Transaction
Fiserv will acquire all issued and outstanding shares of Payfare for CA$4.00 per share in an all cash deal, representing a significant 90% premium over Payfare's closing price on Dec 20, 2024 ($2.11), and a 92% premium over its 60 day volume weighted average trading price.
By acquiring Payfare, Fiserv expands into the gig economy, one of the fastest growing sectors globally. Embedded finance offerings that cater to gig-focused workers and businesses will add new revenue streams and strengthen Fiserv's position in the digital payments space with customized tools for the modern workforce.
Frank Bisignano, Chairman and CEO of Fiserv:
“Payfare has built a reputation as an innovator in workforce payments for gig-economy companies. Together, we can accelerate the delivery of embedded finance solutions for all of our clients, empowering their next chapter of success.”
Why Did Payfare Sell?
Payfare experienced scaling challenges and with the loss of its major client, DoorDash, revenue's sharply declined along with its stock price plummeting over 50% in Q4, 2024. Before the acquisition was announced, Payfare's stock was experiencing significant volatility, declining from CA$8.43 to CA$2.05 in October 2024.
See: How This Fintech Is Helping Low-to-Moderate Income Earners
While the acquisition will provide Payfare with the resources and infrastructure to stablize and expand, the deal highlights a troubling trend in Canada's fintech sector where companies exit early due to scaling challenges.
Marco Margiotta, CEO and Founding Partner of Payfare:
“This transaction represents tangible recognition of the value and strength of what Payfare has built.”
Looking Ahead
Post closing, Payfare will no longer be a publicly traded company and its shares will be delisted from the TSX and OTCQX markets. For Payfare, joining Fiserv is a chance to scale its gig economy and embedded finance solutions globally.
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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How to Begin an Airbnb Business in Toronto, Canada
Dec 24, 2024
Image: Freepik TravelScape
Toronto, known for its diverse culture and bustling economy, is a fantastic city for launching an Airbnb venture. As Canada's largest metropolitan area, it attracts countless visitors annually, making the short-term rental market an appealing opportunity for property owners and investors. Whether you already own property or are looking to buy, understanding the unique dynamics of this business is crucial. For those seeking to streamline their operations and boost income, MasterHost in Toronto provides comprehensive Airbnb management services designed to enhance profitability and simplify hosting.
Exploring Toronto's Airbnb Market
Before diving into the world of Airbnb hosting, it's essential to grasp the current trends and opportunities in Toronto's short-term rental landscape.
Consistent Demand for Vacation Rentals
Toronto is a hub for travelers, from tourists drawn to iconic attractions like the CN Tower to business professionals attending conferences and meetings. This continuous flow of visitors makes vacation rentals a sought-after option, offering flexibility and a personal touch that hotels often lack.
Ideal Neighborhoods for Investment
Some of Toronto's most profitable areas for Airbnb properties include:
- Downtown Core: A hotspot for tourists and professionals, thanks to its proximity to major landmarks and corporate offices.
- The Beaches: Perfect for guests seeking a mix of city life and serene waterfront views.
- Entertainment District: A vibrant area full of theaters, restaurants, and nightlife, catering to a wide range of visitors.
High-Income Potential
Strategically located properties can command premium nightly rates, especially during peak tourist seasons or major events like the Toronto International Film Festival. This consistent demand creates an opportunity for significant financial returns for Airbnb hosts.
Understanding the Legal Landscape for Airbnb in Toronto
Operating an Airbnb in Toronto comes with specific legal responsibilities. Complying with these regulations is critical to running a successful and hassle-free business.
Registration and Licensing
Toronto requires all short-term rental hosts to register their properties with the city. This registration ensures that the property meets the required safety and zoning compliance standards.
- The property must serve as the host's principal residence.
- A registration fee is mandatory, and the license must be renewed annually.
Taxes on Airbnb Income
Hosts must collect the 4% Municipal Accommodation Tax (MAT) from their guests. Additionally, all earnings from short-term rentals must be reported for federal and provincial tax purposes.
Zoning Laws
Zoning restrictions can impact where short-term rentals are permitted. Hosts should verify that their property is in an approved area for such activities.
Insurance Needs
Traditional homeowner's insurance policies may not cover short-term rental activities. Specialized rental insurance is recommended to protect against liability and property damage risks.
Choosing and Preparing a Property for Airbnb
The property you select and how you prepare it will directly impact guest satisfaction and your earnings.
Selecting the Right Property
If you're planning to purchase a property specifically for Airbnb, consider these factors:
- Accessibility: Properties near public transportation and major attractions are more appealing to guests.
- Property Size: Smaller spaces like studio apartments may suit solo travelers, while larger homes cater to families or groups.
- Neighborhood Appeal: Safe, vibrant neighborhoods with local amenities are always in demand.
Equipping the Space for Guests
Transforming your property into a welcoming Airbnb requires thoughtful preparation:
- Essential Amenities: Provide high-speed Wi-Fi, comfortable bedding, and a fully equipped kitchen.
- Smart Technology: Add features such as keyless entry and streaming services for convenience.
- Stylish Interiors: Use cohesive decor and comfortable furniture to create an inviting atmosphere.
Regular Maintenance and Cleaning
Schedule regular maintenance to ensure your property is in excellent condition. A spotless environment is essential for positive guest reviews; professional cleaning services can help maintain high standards.
Marketing and Promoting Your Airbnb
Effective marketing is key to standing out in Toronto's competitive short-term rental market.
Create a Standout Listing
Your Airbnb listing should grab attention and convert views into bookings:
- High-Quality Photos: Use professional images to showcase your property's best features.
- Clear Descriptions: Highlight amenities, house rules, and nearby attractions.
- Dynamic Pricing: Adjust rates based on demand and seasonality to stay competitive.
Leverage Social Media and Online Platforms
Expand your reach by promoting your Airbnb on social media. Utilize vacation rental platforms in addition to Airbnb to attract a wider audience.
Focus on Guest Experience
Satisfied guests leave glowing reviews, which are critical for attracting future bookings. Ensure smooth communication, provide clear check-in instructions, and include thoughtful extras like welcome packages or local travel tips.
Use Professional Management Services
Partnering with a professional service like MasterHost in Toronto can save time and enhance profitability. From managing guest communication to optimizing listings, their expertise ensures a seamless hosting experience.
Conclusion
Toronto's Airbnb market presents an exciting opportunity for property owners and investors to capitalize on the city's popularity. By understanding the market, complying with local regulations, and thoughtfully preparing your property, you can create a successful and profitable Airbnb business.
See: Key Findings from 2025 Advanced Payments and Fintech Survey
Whether you're a seasoned host or just starting, professional support from MasterHost in Toronto can help you navigate challenges, streamline operations, and maximize your income. Your Airbnb venture in Toronto can thrive in this competitive market with the right strategies and dedication.
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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