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
California’s AI Safety Bill Veto and Its Impact
AI Regulation | Oct 1, 2024
Image: Freepik AI
California's AI Safety Bill Veto Ignites Debate Over Tech Regulation and Innovation Balance
A major AI safety bill in California called "SB 1047" was recently vetoed by Governor Gavin Newsom igniting discussions on how to reign in and control the usage and controls of large language AI models like ChatGPT. The bill planned to impose strict safety testing measures prior to implementation but several members of Congress and many IT leaders (of course) were in opposition. Govenor Newsom said that the bill would have put too much burden and costs on AI companies (regardless of their risk level).
See: Ilya Sutskever’s AI Startup SSI Secures $1 billion
The proposed framework would require developers to evaluate and certify safety testing to avoid misuse of AI including the development of bioweapons and other threats. Newsom's veto letter implied that the approach was insufficient given the wide range of risks in AI systems. His stance is that California should prioritize ethical AI without impeding on the ability to innovate and benefit economically from the technology. He mentions alternative options for regulating AI in a more targeted manner, such as the collaboration between industry, academics and key stakeholders to build proper guardrails for the use of responsible AI.
Implications
So is the bill dead? Although Newsom's rejection of SB 1047 prevents it from becoming law in its current form, it could be resurfaced with changes as part of a larger or different regulatory initiative. This is important because Newsom indicated that he's willing to work on alternative regulatory measures that strike a better balance between safety and innovation.
This veto is an important barometer of AI regulation in the US given that California is home to many of the world's largest AI firms including Google, Meta, OpenAI, Nvidia, and Salesforce. Their massive presence means that any AI law in the state of California would have far reaching implications for the US and global IT sector.
See: NVIDIA’s Controversial Data Scraping Under Fire
Newsom's decision is also part of a larger discussion with over 120 AI related bills currently active in Congress covering a swath of topics from safety and ethics to education and workforce development. Individual state governments are also working on their own regulations with organizations actively tracking progress like the Brennan Center for Justice and the International Association of Privacy Professionals (IAPP).
For tech giants, it means that they can continue to develop advanced AI models 'guns a blazing' with fewer constraints (at least far fewer than having projects go through a rigorous safety screening progress first). While this is great for tech companies and their investors in California, it raises concerns about AI oversight without state controls.
In addition to SB 1047, California is considering a number of other AI proposals such as addressing disclosures from AI-generated political advertising, safeguarding minors from sexual content produced by AI, automated decision making systems, and transparency/openness of AI training data.
Conclusion
Companies and investors need to stay abreast of AI regulations in Canada and around the globe, as they can have huge influence on company operations and ethical concerns.
See: Will Nuclear Fuel the Data-Driven Future?
Participate in the discussion and push for fair laws that promote creativity and innovation while protecting the public.
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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Will Nuclear Fuel the Data-Driven Future?
AI Energy | Sep 30, 2024
Freepik AI
AI Data Centers' Growing Power Needs and the Rise of Nuclear Energy
According to the International Energy Agency (IEA), data centre workloads climbed by 340% between 2015 and 2022 as giant tech companies like Amazon, Google, and Microsoft doubled their power usage between 2017 and 2021, reaching 72 TWh. Artificial intelligence (AI) is growing at an exponential rate because AI operations require more large and complex data centres, resulting in unprecedented energy demands and a renaissance in nuclear power that can deliver continuous, low-carbon electricity. In Ireland, data centres consumed 18% of all electricity in 2022; if power generating capacity doesn't increase, that percentage might rise to 28% by 2031.
Globally, financial institutions have acknowledged the importance of nuclear power, with 14 major banks agreeing to assist the COP28 climate objective of doubling nuclear energy capacity by 2050.
See: Rising AI Energy Use: A Call for Sustainable Innovation
The Department of Energy (DOE) in the U.S. recently approved a $1.5 billion loan to reactivate the Holtec Palisades nuclear reactor in Michigan. Similarily, Microsoft and Constellation Energy announced that they will be resuming the reactor at Three Mile Island in Pennsylvania by 2028 through a $1.6 billion power purchase deal.
OpenAI proposed building 5 gigawatt data centres throughout the United States with each requiring the power supplied by 5 nuclear power plants. Google is now looking at nuclear power possibilities.
Small Modular Reactors (SMRs)
Startups are innovating too. SMRs are transformative because they provide greater flexibility, scalability, and faster deployment than conventional reactors. As reported by Axios, there are several prominent initiatives on the go:
- TerraPower is building a fast reactor in Wyoming that uses sodium cooling (with Bill Gate's support)
- X-energy plans to use SMRs to power a Texas Dow industrial facility by 2030.
- Oklo is a small nuclear reactor development project backed by OpenAI CEO Sam Altmam with plans for deployment in Idaho.
By supplying data centres and industrial sites with localized electricity, these SMRs can increase productivity and satisfy rising demand.
AI Efficiency and Grid Management
Despite AI consuming tons of energy, it can be used to optimize the energy efficiency of complicated power networks with improved AI forecasting models that balance supply and demand, especially with fluctuating renewable energy sources like solar and wind.
See: AI Leaders and White House Discuss Energy Infrastructure
As an example, Google's neural network model for wind forecasting has increased output accuracy by up to 36 hours ahead of schedule, resulting in a 20% increase in the wind power's financial worth. These kinds of advancements allow energy suppliers to maximize computational loads, sell electricity ahead of time, and encourage more investment in renewable energy sources.
Investor Opportunities
The convergence of AI, data center growth, and nuclear power opens multiple avenues for investors:
- The return of nuclear energy and innovations like SMRs is creating energy infrastructure investment opportunities consistent with Environmental, Social, and Governance (ESG) principles, promoting environmental sustainability and dependable energy supply. However there are regulatory challenges, high starting costs and examples of past project delays (i.e., the Vogtle plant) all pose hazards. Investors must carefully evaluate policy and cost structures.
- Investing in solutions that increase data centre energy efficiency (or AI capabilities) is interesting. Companies that provide AI solutions for energy management, predictive maintenance, and smart grid operations will benefit from the need to improve data centre energy use.
See: How Carbon Pricing Impacts Fintech and Investment Strategies
- Carbon markets and sustainable finance instruments like green bonds and renewable energy certificates are becoming more and more important as the world moves closer to net-zero emissions. These developments are supported by the low carbon footprint of nuclear energy, which presents potential for investments in carbon credits and environmentally friendly financing options.
The Role of Fintech in the Energy Transition
Fintech will play a key role in overhauling the energy landscape by offering innovation solutions for funding, managing, and optimizing clean energy investments.
- By facilitating investments in green finance products, fintech platforms will help institutional and individual investors fund nuclear and renewable energy projects more easily and align capital flows with ESG objectives.
- Blockchain is being evaluated for grid management and transparent energy trading. Peer-to-peer energy trading and real-time renewable tracking is being made possible by fintech solutions which will plug into AI managed data services looking for optimization.
See: Sustainable Business and The Regenerative Future
- Crowdfunding and DeFI platforms are providing sustainable energy finance, for tech like SMRs, democratizing both funding and access to sustainable energy projects and solutions.
Outlook
The intersection of AI, nuclear power, and sustainable finance can help meet the world's rising energy demands while also meeting it's climate and sustainability goals. With AI driving energy efficiency and nuclear delivering constant, clean electricity, investors and fintech can have a key role in transitioning towards a sustainable and lucrative energy future.
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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CSA Extends Deadline for Crypto Platforms’ VRCA Compliance
Crypto Regulation | Sep 26, 2024
CSA Extends Compliance Deadline for Crypto Platforms Trading VRCAs
The Canadian Securities Administrators (CSA) has published an update for crypto asset trading platforms (CTPs) and those with pre-registration undertakings (PRUs) on complying with requirements for value-referenced crypto assets (VRCAs), such as stablecoins. While Canada doesn't have specific stablecoin regulations, the CSA is enforcing existing securities laws to protect investors. The compliance deadline for platforms has been extended to December 31, 2024, giving CTPs more time to meet the requirements or offer alternatives that address investor protection concerns.
Compliance Deadline Extended
CTPs were originally given until April 30, 2024 to stop trading non-compliant stablecoins. But because of compliance difficulties the platforms were having, the deadline was initially extended to October 31, 2024, and then again to December 31, 2024. This extension gives CTPs additional time to comply with CSA regulations or offer substitute solutions to investor protection issues.
While stablecoins (a form of VRCA) are widely traded in Canada, the CSA emphasizes that there is not currently a specific stablecoin regulatory framework. Instead, the CSA is relying on existing securities regulations to ensure any VRCAs provided by CTPs meets the appropriate requirements of investor protection, financial transparency, and disclosure.
See: Regulatory Updates for Crypto Asset Trading Platforms
By December 31, 2024, all CTPs registered or with PRUs must ensure that any VRCAs issued to customers comply with their registration terms or PRUs. Platforms that were previously obligated to stop enabling customers to buy or hold non-compliant VRCAs (except for specific fiat-backed assets) by December 29, 2023, and the deadline extension does not change that.
Open to Exemptions for Specific Use Cases
The CSA is open to exemptions for particular VRCA use cases that do not raise investor protection concerns. CTP and VRCA issuers are urged to contact regulators about viable alternatives or unusual use cases to discuss.
Conclusion
The CSA's extended deadline allows CTPs more time to comply with VRCA-specific securities requirements.
See: CSA’s 2024 Investor Index. What Fintechs Need to Know
Establishing clear standards for the treatment of VRCAs would promote transparency and security for investors who trade in these assets.
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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The Best Team Building Activities For Utah Corporate Retreats
Sep 26, 2024
If you ask your employees where the ultimate corporate retreat should take place, they will have a few different answers. Some locations spring to mind more easily than others because they are such popular vacation destinations. If you tell your team to pick anywhere they want, there's a good chance they're looking for some coastal sun or a relaxing break in the mountains. But what about Utah? This state might not be the first answer, but it's worth taking a look at because it's pretty underrated as a tourist destination. You have the chance to create an experience for your team that's fun and unique, but only with the right location, accommodation, and team building activities.
Why Should You Choose Utah?
Utah is the perfect location for a corporate retreat because it is so remote. You can really get away from the stresses and strains of corporate life here because it feels like it's in the middle of nowhere. Even Salt Lake City feels calm and restrained compared to the hectic pace of cities on the coast. The area is full of stunning national parks and landscapes you'll struggle to find anywhere else.
Among them are some impressive resorts with great facilities and luxury services. You can all relax and unwind with stunning rock formations offering panoramic views from the pool. You can also enjoy rural retreats with trips out to the canyons and red rocks, take in the majesty of the salt flats, and still enjoy the best the cities have to offer. Or, perhaps the team would prefer the chance to sleep under the stars in a luxury tent at a ranch? There's a lot on offer, and the best corporate retreat planners will find the option that's right for you. They can also help you book the best team building activities in Utah.
10 Utah Team Building Activities For Your Corporate Retreat
1) Hiking
The landscape around these amazing Utah retreat locations is perfect for some nature hikes. Your team can head out together between team-building events or corporate meetings to make the most of their time together. They can set their own pace and make memories. Alternatively, you can book a guided hike that lets you all enjoy the canyons with bonus information about the area.
2) Rafting
Hiking is nice and leisurely enough that anyone can take part within their personal limits. However, if you're after a bigger group adventure, you can book some river rafting. The bold rivers of Utah aren't quite the same as those running through our cities, and rafting classes can be a great way to bring team members closer together.
3) ATV
If your team would prefer to stay on dry land, there's also the option of ATV tours. These expeditions are great for those who want to venture a little further out into the wilder side of Utah. You can book to go out for a few hours to tackle the dune and lakefront settings around Zion National Park.
4) Adventure courses
Then, there are the adventure courses around this great state. The best offer a range of activities and challenges, letting team members choose what they want to try. This could be an elevated rope course, a zip line, or a drop tower.
5) Amusement parks
Nobody is ever too old to enjoy some downtime at an amusement park. This is a great idea for corporate events because it gets everyone in one fun location, but they're still in charge of what they do. Lagoon Amusement Park is especially popular because of its range of rides.
6) Scavenger hunts
Scavenger hunts are a fun way to enjoy team building activities without having to set them up yourself. Some companies and apps let your employees compete to find items hidden around a city. In this case, it's Salt Lake City. They can have a lot of fun testing out their skills and seeing more of the area at the same time.
7) Escape rooms
Escape rooms are always going to go down well as a team activity, especially with competitive departments. You can book some time in a facility in Salt Lake City and let your smartest minds solve the clues and save their teammates. Or they can all perish and laugh about it over drinks after.
8) Cookery classes
Don't overlook the culinary skills of chefs in Utah. The state might not be as well-known for its cuisine or fine dining as other states, but there are some hidden gems. The Park City Culinary Institute even offers cooking classes and competitions for guests.
9) Creative workshops
Alternatively, your team might like the chance to engage in some other creative workshops. Corporate retreat planners can set you up with tutors and creative centers that teach all kinds of skills. You could learn to make pottery, take life drawing classes, or anything else that's on offer.
10) Volunteering
Finally, there are team building activities that take the term more literally. Corporate retreats don't have to just be a way to celebrate success and relax after a long project. They can also be a chance to give back to a community. Volunteering, such as with Habitat for Humanity, brings team members together in new ways and is incredibly fulfilling.
Enjoy Some Team Bonding Experiences In The Heart Of Utah
So, while Utah might sound like a strange choice at first, there are actually plenty of reasons to give this state a try. The area is pretty accessible from the urban areas around the West Coast and mountain states, and it's not as empty as you might think.
See: Experimentation: The Key to Building an Exponential Organization
It doesn't have the same intense city breaks or any beachfront properties for a typical summer vacation. What it does have is some amazing areas of natural beauty, some great culture, and plenty of ways to experience all of that as a team. Check out your options for a Utah trip with your corporate retreat planner and create something unique for your team.
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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Maximizing ROI: What Does It Take to Build a Strategic Automation CoE?
Sep 25, 2024
Image courtesy of trinetix
The concept of an Automation Center of Excellence (CoE) has grown in importance as companies look to accelerate their digital transformation efforts. Automation, when applied across an organization, can streamline processes, reduce operational costs, and significantly improve time-to-market for software products. However, the promise of automation is often diminished when implemented in silos, where initiatives lack coordination and strategic oversight.
An Automation CoE offers a centralized framework that not only integrates various automation projects but also ensures alignment with broader business objectives. It transforms automation from a tactical tool into a strategic asset that drives long-term value. The CoE creates a system for sharing automation best practices, managing governance, and enabling collaboration between departments. This structure ensures that automation efforts are scalable and maintainable across the entire organization, minimizing the risk of fragmentation.
Crucially, a well-executed Automation CoE enables companies to future-proof their operations by embedding a culture of continuous improvement. As technologies evolve and customer expectations change, the CoE ensures that automation strategies adapt in tandem, safeguarding the company’s competitive edge in the market. By creating a unified vision, the CoE maximizes ROI by eliminating redundancy, reducing errors, and fostering a cohesive, efficient automation strategy.
Defining the Automation CoE: A Strategic Investment
An Automation Center of Excellence (CoE) is far more than a group of automation experts—it is a strategic investment that aligns technology with business goals. Unlike isolated automation projects, which often focus on short-term gains, an Automation CoE is designed to deliver sustainable value over time. By centralizing automation expertise, governance, and resources, a CoE ensures that automation efforts are consistent, scalable, and aligned with the organization’s strategic objectives.
At its core, an Automation CoE consists of several key elements:
- Leadership and Governance: Effective leadership and clear governance are essential for aligning automation efforts with business priorities. The CoE establishes decision-making protocols, defines roles, and sets the vision for automation across the organization.
- Talent and Expertise: A successful CoE requires skilled professionals who can drive automation initiatives. These teams should be cross-functional, bringing together expertise from IT, business units, and data science to ensure holistic automation solutions.
- Technology and Tools: Choosing the right automation tools and platforms is crucial. The CoE must evaluate and adopt technologies that align with long-term goals, ensuring that solutions can scale as the organization grows.
In today’s software development industry, businesses that fail to invest in a strategic Automation CoE risk falling behind competitors that are more agile, efficient, and better prepared for future challenges. According to a study by Trinetix, companies with well-established CoEs achieve higher automation ROI by integrating technology and talent with a strategic, forward-looking mindset.
Building the Foundation: Steps to Establish a Strategic Automation CoE
Building an Automation CoE requires a structured approach to ensure its sustainability and alignment with long-term goals. Here are key steps to establish a successful Automation CoE:
Assessing Organizational Needs and Goals
Before building an Automation CoE, organizations must conduct a thorough assessment of their automation needs and long-term goals. This includes identifying pain points in current processes, areas where automation can deliver value, and how automation aligns with broader business objectives. A clear roadmap must be developed to ensure that the CoE addresses both current and future challenges.
Securing Executive Sponsorship and Stakeholder Buy-In
Securing executive sponsorship is critical to the success of an Automation CoE. Without support from the C-suite, obtaining the necessary resources and commitment becomes challenging. Additionally, it is essential to engage stakeholders from across the organization, ensuring that all departments understand the benefits of automation and contribute to its success.
Selecting the Right Tools and Technologies
The right tools are the backbone of a successful Automation CoE. However, technology decisions must be aligned with the organization’s long-term strategy. Businesses should prioritize platforms that offer flexibility, scalability, and integration capabilities, ensuring that automation efforts can grow alongside the company.
| Step | Description |
| Assess Organizational Needs | Identify pain points and align automation goals with business objectives. |
| Secure Sponsorship | Gain support from executives and stakeholders to ensure resource commitment and alignment across departments. |
| Select Technologies | Choose automation tools and platforms that offer flexibility, scalability, and long-term integration with existing systems. |
Measuring ROI: The Metrics That Matter
Measuring the ROI of an Automation CoE is essential to prove its value and optimize its performance over time. A CoE is not a one-time initiative; it evolves, requiring ongoing evaluation to ensure it continues delivering business value. The metrics chosen must align with the organization’s strategic goals and provide insights into both the financial and operational impact of automation initiatives.
Defining Success for Automation CoE Initiatives
Defining what success looks like for an Automation CoE starts with establishing clear KPIs. These should cover both short-term wins, such as cost reductions and time savings, and long-term impacts, like improved scalability and business agility. Metrics such as error reduction rates, deployment speeds, and workforce productivity should be carefully tracked to showcase the tangible benefits of the CoE.
Tracking Performance with Key Metrics
The following KPIs are crucial for assessing the success of an Automation CoE:
- Time to Deployment: How quickly automation solutions are deployed across projects.
- Cost Savings: Financial impact of automating processes versus manual efforts.
- Error Reduction: How much automation reduces human errors and improves product quality.
- Business Agility: How automation enables faster responses to market changes and customer needs.
By regularly tracking these metrics, organizations can adjust their CoE strategies and ensure they are maximizing ROI.
Optimizing for Longevity: Best Practices for Scaling an Automation CoE
Scaling an Automation CoE requires careful planning and a focus on sustainable growth. Once initial successes are achieved, the challenge lies in expanding automation efforts across more processes, departments, and business functions while maintaining efficiency and governance.
5.1 Building a Continuous Improvement Culture
One of the key pillars of a successful CoE is fostering a culture of continuous improvement. This means that automation is not seen as a one-time project but as an evolving practice. Teams should regularly review automation performance, identify areas for improvement, and implement changes that drive further efficiency gains.
5.2 Overcoming Common Challenges in Scaling
As the Automation CoE grows, it will face challenges such as resistance to change, technology debt, and a potential shortage of skilled talent. Overcoming these obstacles requires strong leadership, ongoing training programs, and investment in both people and technology.
Case Studies: Proven ROI from Automation CoE Initiatives
The impact of a well-implemented Automation CoE is evident in numerous real-world case studies. Organizations that have embraced the CoE model have consistently reported higher returns on their automation investments, improved efficiency, and greater agility in responding to market changes.
For example, a global technology company implemented an Automation CoE and achieved a 30% reduction in operational costs within the first year. By centralizing their automation efforts, they were able to scale initiatives more efficiently, reduce redundancy, and streamline their software development lifecycle. Another company in the financial sector saw a 40% improvement in time-to-market by leveraging their CoE to deploy automation solutions more rapidly across departments.
These examples demonstrate the tangible ROI that businesses can achieve by strategically investing in a robust Automation CoE.
Conclusion: The Future of Automation CoE in Software Development
The role of Automation Centers of Excellence will only continue to grow as automation becomes a cornerstone of software development. In the future, CoEs will not only focus on process automation but will also integrate advanced technologies like AI and machine learning to further enhance productivity and efficiency. Organizations that invest in building a strategic Automation CoE today will be well-positioned to harness the full potential of automation in the future.
See: How PhD-Level AI Agents Will Change Financial Services
The future of software development is deeply intertwined with automation, and the CoE framework offers a clear pathway to maximizing ROI. By embedding a culture of continuous improvement, aligning technology with business goals, and fostering cross-functional collaboration, Automation CoEs will drive sustainable growth and ensure companies remain competitive in an increasingly automated world.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Nmbr Raises CAD $7.6M for Embedded Payroll in Canada
Funding Announcement | Sep 24, 2024
Image: Freepik
Nmbr Secures $7.6 million Seed Funding to Embed and Simplify Payroll Solutions for Canadian Businesses
Canada's first specialized embedded payroll software provider, Nmbr, announced seed funding of CAD $7.6 million to transform embedded payroll solutions for Canadian businesses. Funds will be used to expedite development of it's API-based payroll solution to help companies to customize their own payroll solutions in weeks instead of years, improving operational efficiency and customer retention. Panache Ventures, Golden Ventures, Motivate Venture Capital, and Luge Capital led the round, while RBCx served as a strategic banking partner.
Jamie Rosenblatt of Golden Ventures:
“We invested in Nmbr because of the team’s deep industry expertise and their dedication to supporting businesses across Canada. Their solution is a game-changer for businesses of all sizes. We believe Nmbr will deliver substantial value to employers while driving efficiency and innovation in the payroll sector.”
The Power of Embedded Payroll Automation
Developed by Simon Bourgeois (CEO), Drew Millington (CRO), and Kevin Langlois (CTO), Nmbr's integrated payroll platform gives Canadian companies an easy way to include payroll features into their daily operations. This option significantly reduces the complexity, time and costs needed to develop customized payroll infrastructure from scratch.
Various research studies show that traditional payroll systems are often overly manual, inefficient, and prone to errors that can cost firms up to 30% in processing time. Nmbr's integrated payroll solutions can improve the overall experience of employees who can access their pay stubs, tax information, and benefits at any time using a self-service portal and mobile access, promoting transparency, openness and employee participation.
See: Embedded Finance: Banking Meets the Customer
Automated payroll solutions can save 50% of processing time by helping companies reduce tax compliance risks and cut admin costs with automated tax filings, real time updates on changing tax laws, and best practice procedures. This avoids costly penalties and lost productivity, and aims for a smoother, error free payroll run.
Simon Bourgeois, Co-founder and CEO:
"We’re incredibly grateful to our investors for their support and belief in our mission to empower Canadian businesses with embedded payroll solutions. We’ve seen these systems thrive in the U.S., and we’re excited to bring this proven model to Canada."
Looking Ahead
Nmbr's initial clients are from various sectors, such as financial services and technology where their goal is to include payroll features directly into products like employee benefits administration, AP/AR automation, and scheduling.
See: 12 Market Entry Approaches for Fintech Startups
The embedded payroll model has demonstrated its effectiveness in the United States, and the Canadian market is ripe for similar advancements.
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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Loop Raises $6.4M CAD for SMB Global Finance Platform
Bank On Loop | Sep 17, 2024
Image: Loop Team/Linkedin
Loop Brings Total Funding to $10M CAD To Build Global First Financial Platform for Small and Medium Businesses
Loop, a Toronto-based fintech company, announced today that they have secured an additional $6.4 million CAD in its most recent investment round, bringing its total fundraising to more than $10 million CAD. This investment will help Loop accelerate its objective to establish the first 'global by default' financial services platform geared to small and medium-sized companies (SMBs), enabling them to handle cross-border payments, currency conversion, treasury management, and international financial operations. Key investors in this round of fundraising included Mistral Venture Partners, Luge Capital, Graphite Ventures, Wedbush Ventures, and Conconi Growth Partners.
See: How the Global Remote Workforce is Changing the Model Work Mindset
Cato Pastoll, CEO and co-founder of Loop (NCFA Advisor):
“Modern companies are built to operate globally, yet the process of setting up banking services to conduct business in a foreign market in order to send, receive and manage money is an expensive and challenging barrier to overcome for businesses.”
Overview of Loop's Journey
- Lending Loop (2015-2021): Lending Loop was co-founded in 2015 by Cato Pastoll and Brandon Vlaar, as Canada's first licensed peer-to-peer (P2P) lending platform, supporting small businesses with marketplace loans from a network of investors. This strategy was about making it easier for SMBs to source inexpensive loans while allowing investors to earn profits by supporting local businesses.
- Rebranded to Loop (2022): In 2022 Lending Loop rebranded itself as "Loop" and expanded its services beyond lending. Understanding that businesses face challenges beyond financial matters when operating on a global scale, Loop took on the task of addressing issues impacting SMBs, such as facilitating cross border payments, managing currency exchanges and treasury operations.
See: Open Banking: Revolutionizing Financial Data Sharing
- Bank on Loop (2024 to present): As Loop continued to grow, the company leaned further into its mission to create a "global-by-default" financial services platform for SMBs. Now branded as Bank on Loop, the company aims to provide businesses with streamlined tools to manage international finance operations. Loop's services have gained traction with Canadian businesses, as it fills a gap left by large banks that often overlook the needs of SMBs with global services.
Raif Barbaros, Partner at Mistral Venture Partners:
“Although most US and Canadian exporters are SMBs, they are grossly underserved by the large banks, especially in cross-border banking. Loop’s innovative platform is unlocking global growth opportunities for these businesses. We’ve doubled down on our investment because we believe in the overall thesis, as well as the Loop team to lead this transformation. We’re excited to support their continued success."
Why It Matters
By streamlining banking services and reducing costs for businesses expanding globally, Bank on Loop is positioning itself as the go-to solution for global financial management.
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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