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
Canada Has C$500B in Private Credit Exposure, But Little at Home
August 18, 2026 | NCFA Insight | Capital Markets And Market Infrastructure, SME Finance And Business Banking, Competition And Market Structure
Canadian Capital Embraces Private Credit Abroad While Domestic Business Lending Remains Bank Led
On August 2026, the Bank of Canada mapped Canada's private credit market and exposed an unusual divide. Private credit remains a relatively small source of financing for Canadian businesses, yet Canadian pension funds, insurers, investment funds and banks have built approximately C$500 billion of exposure to the asset class, much of it outside Canada.
Non-bank loans have accounted for about 15% of external funding for Canadian non-financial businesses for roughly a decade. Banks and public debt markets still provide about three-quarters of external business financing. By contrast, private credit has become a much larger alternative to traditional lending in parts of the United States.
The interesting question for Canada isn't whether private credit exists. It clearly does. It is why Canadian institutional capital has embraced the asset class globally while Canadian businesses continue to use it relatively little at home.
Canadian Capital Is Already Deep Into Private Credit
The C$500 billion estimate shows that Canadian exposure to private credit is already material even though the domestic borrowing market remains comparatively small.
- Canada's large pension funds held an estimated C$215 billion in private credit at the end of 2025, equal to roughly 9% of their invested assets
- The three largest Canadian life insurers held just over C$200 billion in the first quarter of 2026, or about 22% of their invested assets
- Canadian investment funds held another C$54 billion in 2025, up more than 60% since 2020
- Canadian banks also had at least C$40 billion of loans outstanding to asset managers operating private-credit funds, most of them in the United States
Those aren't small exposures. Canadian institutions clearly know how to price and allocate private credit, yet much of that capital is being deployed outside Canada. The implication is harder to ignore at a time when Canadian businesses need more financing options to invest, scale and compete. If domestic firms remain heavily dependent on banks while Canadian institutional capital finds private-credit opportunities elsewhere, Canada may be leaving a financing gap at home precisely when productive domestic investment matters most.
That doesn't mean pension funds or insurers should redirect capital for patriotic reasons. Their mandates require them to pursue risk-adjusted returns. But it does raise a structural question about why Canada's financial system is better at exporting private-credit capital than building comparable opportunities for Canadian businesses.
See: Bank Of Canada Warns Non Bank Debt Risk Can Spread Fast
The geographic split is what deserves more attention. Canadian capital is participating in a global private-credit market that domestic businesses have not adopted to the same degree. That makes this partly a capital-allocation story. Canadian institutions appear willing to accept private-credit risk, but much of the opportunity they are finding is elsewhere.
Canada's Business Credit Market Still Favours Incumbents
The Bank's 15% figure fits a wider pattern in Canadian business financing.
Statistics Canada's 2023 SME financing data showed that chartered banks supplied 68.5% of SME debt financing. Credit unions accounted for another 20.6%, government-backed lenders 9.4%, and online alternative lenders only 2.2%.
That doesn't mean Canadian businesses lack alternatives. It means alternative credit has yet to displace the established banking structure at meaningful scale.
Several explanations are possible. Canada's concentrated banking system gives incumbent lenders large customer bases, deposits, underwriting data and distribution. Many SMEs also maintain long-standing banking relationships, reducing the incentive to switch unless conventional credit becomes unavailable or too restrictive.
Private credit may also be more attractive in markets where borrowers are larger, transactions are more complex, or bank lending leaves wider financing gaps. The Bank notes that in the United States, private credit has become a primary financing source in some segments.
But the Canadian data raises the possibility that domestic private credit may still be underdeveloped relative to the amount of institutional capital and underwriting expertise available here.
That possibility becomes more relevant as fintech platforms improve access to business cash-flow, accounting, invoice and payment data. Better information doesn't eliminate credit risk, but it can make smaller and more customized financing economically viable.
The C$500B Exposure Creates Both Opportunity And Risk
The Bank of Canada's focus is financial stability, and the exposure numbers explain why.
Private credit can diversify portfolios and produce attractive returns, but transparency remains limited. Leverage can be difficult to measure, valuations are less observable than in public markets, and the connections between private-credit funds, banks and institutional investors are still being mapped.
The Bank sees Canadian pension funds and life insurers as relatively well positioned to manage these risks because they generally have long investment horizons and limited reliance on short-term funding. The three largest insurers also hold predominantly investment-grade private credit, with less than 1% classified as higher risk.
See: Open Finance SME Capital Access
Canadian banks' direct exposure appears comparatively contained. At least C$40 billion of lending to private-credit managers represents only about 1% of overall Canadian bank lending, and these loans are typically secured by investors' committed capital.
The vulnerability is therefore less about one large domestic private-credit bubble and more about interconnected exposure to global markets.
A severe deterioration in U.S. or other foreign private-credit portfolios could affect Canadian institutions, asset values and potentially the availability of credit at home. The Bank's 2026 Financial Stability Report reinforces the concern. Rapid global growth, limited transparency and tighter links across the financial system make private credit harder to assess under stress.
Canada May Have More Private Credit Capacity Than Domestic Supply
For NCFA, the most interesting gap is between institutional capability and domestic deployment. Canadian pension funds and insurers already allocate hundreds of billions of dollars to private lending, while Canadian banks finance private-credit managers. Yet Canada's domestic business-financing structure remains heavily concentrated around banks and other established lenders.
Canadian fintech lenders are building alternatives around business data. JUDI.AI uses transaction and cash-flow data to support SME underwriting, while Clearco uses ecommerce performance data to fund qualified brands. These aren't the same as institutional middle-market private credit, but they show how non-bank financing can reach businesses through different underwriting and distribution models.
That doesn't mean Canada should recreate the U.S. private-credit market. More private credit can also bring more leverage, weaker transparency and new channels for financial stress. The better question is whether Canada can develop more domestic non-bank business financing while preserving underwriting discipline, transparency and financial stability.
The opportunity is therefore less about importing the U.S. model and more about closing the gap between Canadian capital and Canadian business demand.
If institutions here are already comfortable allocating substantial capital to private credit abroad, Canada should be asking what market structure, origination capacity and financing infrastructure are still missing at home.
Talking Point
If Canadian institutions are already comfortable allocating hundreds of billions of dollars to private credit abroad, what is preventing more of that lending capacity from developing for Canadian businesses at home?
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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FCA Handbook API For Compliance And Regtech
August 13, 2026 | NCFA Resource | Risk Compliance And Regtech, Artificial Intelligence And Data, Regulation And Policy
Machine Readable Rules For Compliance Systems And AI
On August 6, 2026, the UK Financial Conduct Authority launched the FCA Handbook API, giving firms, developers and RegTech providers direct access to structured Handbook data. The free service lets software retrieve current rules, guidance, technical standards and glossary content for use inside compliance and regulatory change systems.
The practical value is real. Firms no longer have to rely only on website searches, monthly downloads or manually maintained rule libraries when they want FCA source material inside their own systems. The API creates a direct route from the Handbook into software that tracks obligations, maps rules to business activities or supports AI assisted compliance work.
What It Does In Practice
The API provides structured access to the FCA Handbook, Technical Standards and Glossary. Users need a free Handbook account, and the FCA says the data can be used in firms’ own applications or through third party technology providers.
The FCA identifies several practical uses:
- mapping rules to products, activities and customer journeys
- tracking and comparing current and future Handbook changes
- feeding regulatory and policy updates into compliance systems
- supporting RegTech products with current FCA source data
- providing trusted regulatory content to AI tools
AI can help retrieve, classify and compare regulatory information, but the quality of the output still depends on the source material it receives. A direct FCA data feed reduces one common problem which is compliance tools working from copied, stale or inconsistently maintained rule text.
NCFA has already identified this problem in AI powered regulatory reporting. The opportunity isn't simply to add AI to compliance work. Systems need reliable regulatory inputs, clear controls and a way to trace outputs back to the underlying rule or guidance.
The API can also reduce manual work around regulatory updates. Firms can connect Handbook content to internal rule inventories, product governance, control libraries or change management processes rather than repeatedly checking individual pages for updates.
There are some practical access conditions. Users cannot work with the API directly through the Handbook website. They need a compatible external application such as Postman or RapidAPI, or another system built to use the interface. Protected endpoints are also subject to rate limits.
Who Gets Value
The clearest users are compliance teams, legal teams, RegTech providers, financial institutions and fintechs that need FCA rules inside operational systems.
Large firms with internal technology teams can connect the data to their own compliance architecture and tailor how Handbook content is matched to business lines, products or controls.
Smaller firms may get more value indirectly through RegTech providers that use the API to improve rule monitoring, change alerts, obligation management or policy tools.
Developers and AI teams also gain a cleaner source for regulated workflows. For example, a compliance assistant could retrieve relevant Handbook content, compare current and future text, or help staff identify which internal policies may need review after a rule update.
That doesn't make the API a compliance decision engine. A system can retrieve the rule accurately and still reach a poor conclusion about how it applies to a particular firm, product or client situation. Human review, legal interpretation and internal accountability remain necessary.
Strengths And Limits
The main strength is source quality. The API automatically draws from the latest Handbook rather than requiring firms or vendors to maintain their own copy of the rulebook. That can improve consistency and reduce the delay between a Handbook update and its appearance inside a compliance system.
It is also useful that the FCA has made the service available without a separate licence fee. Firms can choose whether to connect directly or use a technology provider, which lowers the barrier for developers and RegTech companies testing new compliance tools.
The API is not a complete regulatory archive. It does not provide historic Handbook versions. Requests for past dates return an error, although current and future versions are available through the API. Firms that need a full historical record will still need the Handbook website, archive tools or their own retained records.
The API also does not cover every piece of FCA information. The FCA Handbook contains rules, guidance and standards, while other FCA publications, supervisory communications, consultations, speeches and notices remain outside that core source. Compliance systems therefore still need broader regulatory monitoring.
Direct access to current regulatory text improves the input, but it does not guarantee accurate interpretation. Firms using AI for compliance should still test outputs, keep records, control permissions and make it clear when a person needs to review the result. The IOSCO AI Supervisory Toolkit provides useful additional guidance on governance, oversight, data quality and control expectations for AI in regulated financial environments.
The FCA Handbook API is most useful when treated as authoritative source infrastructure. It can make regulatory information easier for software to retrieve and keep current, while firms remain responsible for deciding what the rules mean for their own operations.
Key Resources
FCA Handbook API Launch (use cases for compliance, RegTech and AI)
FCA Handbook API FAQ (access, current data, limits and usage requirements)
FCA Handbook API (API access and developer entry point)
FCA Handbook (current rules, guidance and technical standards)
AI Powered Regulatory Reporting (regulatory data, automation and AI opportunity)
IOSCO AI Supervisory Toolkit For Capital Markets (AI governance, controls and oversight)
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](http://www.ncfacanada.org)
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Canadian VC Is Growing Again, But Fewer Companies Are Getting Funded
August 7, 2026 | NCFA Insight | Capital Markets And Market Infrastructure, SME Finance And Business Banking, Public Sector Policy And Industrial Strategy
Canadian VC Growth Masks A Thinner Funding Pipeline
Canadian venture capital reached $2.69 billion across 250 deals in the first half of 2026, according to the CVCA's latest market data. Capital invested rose 17% from H1 2025, the first year-over-year increase in first-half dollars since 2021.
Deal count moved the other way. It fell 8.8% from 274 to 250, marking a fifth consecutive first-half decline, while average financing size increased from $8.4 million to $11.38 million.
Canada is putting more venture capital to work without funding more companies. Larger rounds are lifting the national total while seed financing continues to weaken.
More Money Is Concentrating In Larger Rounds
| H1 2026 | Capital | Deals | Avg. Deal | YoY |
|---|---|---|---|---|
| Total VC | $2.69B | 250 | $11.38M | Capital +17%; deals -8.8% |
| Seed | $285M | 82 | ~$3.5M | Capital -31%; deals -13% |
| Early Stage | $1.18B | 68 | ~$17.4M | Capital +29%; deals essentially flat |
| Later Stage | $984M | 18 | $54.67M | Capital +23%; eight fewer deals |
Sixteen rounds of $50 million or more absorbed $1.57 billion, or 59% of all capital invested. Five financings above $100 million alone accounted for $807 million, equal to 30% of the national total.
Most transactions were much smaller. Deals below $25 million represented 85% of disclosed financings but received only 32% of the money. Another 155 rounds closed below $5 million and collectively attracted $221 million.
The same pressure is visible on the fund side. Canadian VC fundraising became more concentrated in 2025, leaving more capital in fewer hands and raising the bar for companies trying to get into institutional portfolios.
Seed Financing Is Still Moving Backward
Seed is the clearest warning in the report. Investment fell 31% to $285 million across 82 deals, while transaction count declined 13%. Pre-seed added $52 million across 56 financings, with an average round below $1 million.
Early stage looks healthier at $1.18 billion, up 29%, but the number of financings barely changed. More capital went into roughly the same number of companies, pushing the average early-stage round to about $17.4 million.
Later-stage financing is even more concentrated. The $984 million invested was spread across only 18 transactions, the lowest first-half deal count in CVCA's series. The average round reached $54.67 million.
For founders, companies with traction and scale can still attract large rounds, while the market for the first few million dollars is getting tighter.
Some of that friction is structural. Smaller Canadian financings can carry disproportionately high compliance costs because many legal, disclosure and regulatory costs do not get proportionally cheaper as the raise gets smaller. Ontario's decision to join Canada's securities passport should reduce some duplication, but it does not by itself solve the economics of small-company financing.
There is also a financing-fit problem. Merchant Growth founder David Gens argues that many smaller businesses are asset light and cash-flow driven, while traditional lending still relies heavily on assets that can be pledged as collateral. After nearly $1.5 billion deployed to about 15,000 Canadian small businesses, his point is practical: access to capital and access to financing that fits the business are not the same thing.
Those problems compound. A company may need grants, founder capital, crowdfunding, angel money, debt and venture financing at different points in its growth. Canada's small-business capital access gap is therefore less about finding one missing source of money than making it easier for companies to move from one financing stage to the next.
If fewer businesses get financed near the bottom, fewer can build the traction needed to compete for the larger rounds that are keeping Canada's headline VC numbers up.
Fintech Shows What It Takes To Raise At Scale
Financial technology supplied four of the larger disclosed rounds in the first half. KOHO raised $130 million, nesto $107 million, Float $85.4 million and Relay $68.8 million. Together they represent almost $392 million in financing.
KOHO has been building toward banking scale, adding credit products and pursuing a Schedule 1 bank licence. Its $130 million Series E was one of the largest disclosed Canadian VC financings in H1.
Float has been expanding its SME finance platform across business accounts, spend management and working-capital products. Its $85.4 million H1 financing followed earlier equity financing and continued expansion into business banking and credit.
Relay has been scaling its SMB finance platform, raising US$50 million in its Series B as it expanded banking and cash-flow tools for small businesses. The CVCA records its H1 2026 financing at $68.8 million in Canadian-dollar terms.
These companies already have products, customers and operating histories. Their ability to attract larger rounds shows where capital is still available, while the weaker seed numbers show how much harder it may be for the next group to reach that point.
Foreign Capital Still Matters At The Top
U.S. investors participated in 28.0% of Canadian VC transactions in H1, up from 25.9% in 2025. European participation reached 10.8%, the highest share in the six-year series, while 66.4% of transactions were financed exclusively by Canadian investors.
The money also remains geographically concentrated. Ontario, Quebec and British Columbia accounted for 91% of capital and 80% of transactions. Toronto led with $879.7 million across 64 deals, followed by Montreal with $619 million across 50.
See: What Canada Can Learn From The SEC Small Business Forum
For founders that reach scale, Canada remains connected to large domestic and international pools of capital. For investors, the concern is whether enough new companies (read: Canada's farm team) are being financed underneath them to keep producing attractive later-stage opportunities.
The Headline Recovery Hides A Thinner Pipeline
H1 2026 looks better than H1 2025 if the measure is dollars invested. It looks weaker if the measure is how many companies received venture financing, and weaker again at seed.
For founders, proof of traction and financing readiness carry more weight in a selective market. For investors, larger rounds remain available, but a shrinking seed base can become a sourcing problem several years down the road.
Canada needs capital at both ends. Proven companies need enough money to scale, while younger companies need financing that fits where they are today and gives them a realistic way to reach the next stage. The CVCA numbers show stronger deployment at the top of the market, but they don't show yet at the mid way point of 2026 that the pipeline feeding it is getting healthier.
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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What Canada Can Learn From The SEC Small Business Forum
August 4, 2026 | NCFA Insight | SME Finance And Business Banking, Capital Markets And Market Infrastructure, Public Sector Policy And Industrial Strategy
Small Business Finance As A Connected Market
On July 30, 2026, the U.S. Securities and Exchange Commission announced that its Small Business Capital Formation Advisory Committee would reconvene on August 6, 2026. The committee will continue work on public market access and capital formation for smaller companies.
On July 27, 2026, the SEC delivered its 2026 Small Business Forum report to Congress. The annual Forum brings founders, investors, intermediaries and policymakers together to develop and prioritize recommendations. The standing committee continues the work between forums and advises the SEC on rules affecting private companies and smaller public issuers.
The process isn't a fast track to reform. Some recommendations become rules, some need Congress and others return for years without a final answer. But what's really valuable is the public record. A market problem gets an owner, a recommendation, a response and a history that can be checked later.
The combined U.S. record contains 426 recommendations from the Forum between 2012 and 2026 and the committee between 2019 and 2026. That total includes repeated calls for the same reform. Finders and limited capital introduction, for example, appeared 29 times. A proposed federal framework arrived in 2020, but no final order was identified by August 3, 2026. By contrast, a 2019 committee recommendation to raise the Regulation Crowdfunding limit was reflected in the 2020 Regulation Crowdfunding reforms that increased the ceiling to US$5 million and removed investment limits for accredited investors.
Canada's financing files are moving too. The federal government is committing C$1 billion to the Growth VCCI program, while Ontario develops professionally managed funds that could give retail investors access to private assets. Both initiatives can widen the market. Neither creates a standing way to identify the gaps between a financeable company and the investors prepared to back it.
The U.S. hasn't solved small business finance. It has kept company access, investor access and market rules in the same public conversation. Canada has consultations and capable institutions, but no single process currently connects those questions and tracks the response from one review to the next.
Company Access And Investor Access Belong In One System
Financing policy usually arrives in separate files. One initiative supports venture funds. Another considers retail access to private assets. Regulators review an exemption while economic development agencies provide loans, grants or commercialization support. Companies experience those programs as one market when they have to move from one source of capital to another.
The U.S. Forum keeps more of that system in view. Its 2025 Small Business Forum report connected early capital, accredited investor access, Regulation Crowdfunding, smaller funds, retail access to private markets, secondary trading and the cost of becoming public. Not every proposal deserves approval. Keeping them together shows how one decision affects the rest of the market.
A capable business may begin with customer revenue or a grant, add community or angel capital and later reach strategic, institutional or public investors. NCFA's analysis of who gets access to capital shows why that path is uneven. Geography, networks and investor relationships can determine which businesses get seen before investment merit is even tested.
Managed funds and direct investing serve different markets. Ontario's Long Term Asset Fund Project could give households professionally managed exposure to a diversified portfolio of private assets. Investors still choose the manager rather than the companies. Fees reduce returns, private assets can be hard to value and redemption windows can limit access to cash. The fund may also invest outside Canada or buy existing interests, so retail access doesn't guarantee new financing for Canadian businesses.
Direct equity crowdfunding lets people choose a business and can turn customers or local supporters into investors. The tradeoff is concentrated company risk, less information than a public company provides, possible dilution and little chance to sell for years. Platforms also need enough credible issuers and active investors to cover compliance and operating costs. Canada needs both routes because they serve different investors and finance different companies.
Regulatory Constraints Leave Canada Behind International Peers
Canada's estimated equity crowdfunding market (NI 45-110) equals only C$5.15 million in 2025. Comparable markets generate between six and thirteen times more funding relative to their business base.
- Canada. Approximately C$5.15 million, or C$3.76 per employer business. The estimate uses FrontFundr's reported 2025 investment activity and 93% market share because Canada doesn't publish an official national total.
- United States. Approximately C$289.1 million in 2025 Regulation Crowdfunding proceeds, or C$48.99 per employer business. The SEC figures put the U.S. rate at thirteen times Canada's.
- Australia. Approximately C$29.8 million across 63 successful offers in its 2025 financial year, or C$29.99 per employing business. Australia's market rate is eight times Canada's.
- European Union. Approximately C$804.9 million in equity crowdfunding during 2024, or C$24.10 per active enterprise. ESMA's figures put the EU rate at 6.4 times Canada's. The EU uses an earlier reporting year and counts active enterprises rather than employer businesses, so the comparison is directional.
Why? Canada's lower issuer ceiling, tighter retail investor limits and divided portal and dealer model don't explain the entire gap. They do restrict how much a company can raise, how much ordinary investors can contribute and whether smaller offerings are economical for intermediaries to support.
Canada would need roughly C$41 million to C$45 million more of annual activity to match Australia after adjusting for the number of people or employer businesses in each country. That is about eight to nine times Canada's estimated 2025 market.
The United Kingdom provides a useful scale check, but not a perfect annual match. Its broader equity crowdfunding market raised £324 million across 297 rounds in 2024, or about C$567 million at the Bank of Canada's 2024 average exchange rate. The year and reporting method differ from the Canadian, U.S. and Australian figures, so the UK number is directional. It still shows how small Canada's investment crowdfunding retail market remains.
The jobs record is less complete. Crowdfund Capital Advisors estimates that U.S. Regulation Crowdfunding has financed more than 8,100 companies since 2016 and created or supported over 430,000 direct and indirect jobs. It also estimates more than US$27.1 billion in economic activity. Those are industry estimates, not official SEC statistics.
An earlier British Business Bank study of successful UK raises found that 39% of companies hired an average of 2.2 employees after raising equity or debt crowdfunding. Another 48% intended to hire. Within three months, 28% had completed angel or venture financing and 43% were in discussions with institutional investors. The study is from 2015 and combines equity and debt models, so it describes company results rather than a current national total.
Australia's 2025 report says 25% of successful offers came from companies returning for another raise, but it does not provide a national jobs figure. Canada doesn't publish an equivalent job or later financing series either. The missing comparison is part of the problem, not a reason to invent one.
What a stronger Canadian direct retail market could support
An NCFA base scenario starts with about 25 additional equity crowdfunding issuers a year and a direct retail market of roughly C$25 million. That would still reach only 56% to 61% of activity in Australia after adjusting its market to Canadian scale.
If those raises connect to offering memorandum, accredited investor, community and strategic capital, the scenario supports about 50 additional companies and C$50 million of annual financing. It could support roughly 500 existing jobs, create or retain about 150 direct jobs over two to three years and help around eight companies reach another financing.
Growth VCCI Cannot Reach Every Financeable Company
Growth VCCI is a serious capital supply intervention. Budget 2025 committed C$1 billion beginning in 2026 to 2027. The current design allocates C$700 million to funds of funds, C$200 million to life sciences investment and C$100 million to emerging managers. Ottawa expects the funds of funds stream to attract three private dollars for each public dollar.
See: What BrewDog's Sale Could Mean For Retail Investors
That can strengthen professional fund management and support high growth companies that match a fund's strategy. However, Growth VCCI does not invest directly in companies. Fund managers will still choose businesses that fit their ownership targets, time horizons and return requirements.
Some financeable companies will not fit a VC model. The examples below aren't failed venture deals. They are different financing jobs.
- A regional manufacturer may need C$3 million for equipment
- A profitable consumer brand may want expansion capital without giving a fund a large ownership position
- A rural business may be important to its local economy while offering steady rather than venture scale growth.
Recent Canadian offerings show what direct investing can deliver and where the current regulatory design constrains it. Leading investment crowdfunding platform FrontFundr reported that:
Edison Motors raised C$1.49 million from 961 investors under NI 45-110, reaching 99% of Canada's C$1.5 million annual issuer ceiling.
Blossom came nearly as close, raising C$1.45 million from 951 investors through the exemption and another C$482,619 from accredited investors.
Gander raised C$1.15 million under NI 45-110 and combined it with other investment to reach just over C$2 million.
These companies attracted hundreds of investors, but the exemption limited how much they could raise through that channel. Companies seeking more capital had to add accredited investors or use another financing route. FrontFundr's 2025 investment crowdfunding activity places these offerings within the wider Canadian market.
See: What Ten Years Of U.S. Investment Crowdfunding Shows
Edison also shows that progression can work. After reaching the startup crowdfunding ceiling, the company continued with accredited investors and an offering memorandum. It reported approximately C$14 million raised by May 2026. The next question is how often other companies make that transition, what it costs and where they stall. Canada doesn't publish enough company funding lifecycle data to answer it.
Four Recommendations
The most transferable U.S. lesson is the public chain from market problem to government response. In 2024, the SEC advisory committee recommended raising the Regulation Crowdfunding threshold that triggers reviewed financial statements from US$124,000 to US$350,000. The proposal hasn't become a final rule, but the recommendation, rationale and response remain visible.
Canada could build the same discipline around four connected reforms.
- Make smaller offerings commercially workable. Review the C$1.5 million issuer ceiling, investor limits, disclosure thresholds and intermediary permissions together. Published platform pricing can reach roughly 7% to 8% plus fixed fees. Raising the cap alone won't solve weak distribution if a portal or dealer still can't serve the offering profitably (read: dealer/funding portal economics).
- Measure the route to the next financing. Track how often companies move from NI 45-110 into an offering memorandum, accredited investor capital, strategic investment or public markets. Publish the time, cost, abandoned raises and investor liquidity outcomes. Edison shows that progression can happen, but one company can't establish the national pattern.
- Make national distribution work in practice. NI 45-110 is harmonized, yet adjacent exemptions, filing systems and dealer reach still create provincial friction. Canada should identify the remaining duplication and let compatible offerings reach investors nationally without repeating the same work province by province.
- Publish national market data and track longer term results. An annual report should show offerings launched, completed, withdrawn or closed below target, along with capital sought and raised, issuer characteristics, intermediaries, investor participation and repeat raises. A separate study every two or three years should track company survival, later financing, employment, revenue growth and investor results. The first report would show how the market operates. The second would show whether it produces sustainable value.
An annual Small Business Capital Formation Forum could set the priorities. A standing committee could continue the work between forums. Founders, angels, retail investors, venture managers, exempt market dealers, platforms, Indigenous and community finance leaders, regulators and economic development bodies should all have seats. No single group sees the full market.
See: How UK Private Markets Are Adding Investor Liquidity
The output should stay short. Publish each recommendation, the problem it addresses, the body responsible for responding, its current status and the next review date. Keep the archive public. An unresolved proposal shouldn't disappear into a consultation file and return five years later as if the problem were new.
Talking Point
The U.S. lesson is the discipline of keeping unresolved capital problems visible until someone responds. Canada already has venture programs, managed private market proposals, exemptions, portals and dealers. A national forum would bring those routes into one public review and show which companies each one serves, where financing stops and who is responsible for addressing the gap.
Growth VCCI can strengthen institutional venture capital. Managed funds can widen retail access to private markets. Direct investing can reach companies outside fund mandates and let Canadians choose which businesses they back. Canada should evaluate these routes as one capital market and judge them by a practical result: whether more financeable businesses can reach investors on workable terms.
If Canada can publish a billion dollar plan for venture capital, should it also publish the financing barriers founders and investors want fixed, who owns each response and what changed?
Related NCFA Intelligence
Continue into the Canadian funding, investor access and intermediary developments most closely connected to this proposal.
Frequently Asked Questions About Small Business Capital Advocacy
What does the SEC Small Business Forum do?
It brings market participants together to develop and rank recommendations on small business capital formation. The SEC publishes the leading recommendations in a report to Congress and includes a response to each one.
How is the SEC advisory committee different from the Forum?
The Forum is an annual public process. The Small Business Capital Formation Advisory Committee meets during the year and gives the SEC ongoing advice about rules affecting private companies and smaller public issuers.
How large is Canada's direct equity crowdfunding market?
FrontFundr reported C$4.79 million under NI 45-110 in 2025 and a 93% market share. That implies a total market of about C$5.15 million, although Canada does not publish a regulator confirmed national total. The estimate equals roughly C$0.12 per person, compared with C$1.08 in Australia and C$0.85 in the United States on the annual measures used in this article.
Does equity crowdfunding create jobs?
U.S. industry research estimates that Regulation Crowdfunding has created or supported more than 430,000 direct and indirect jobs since 2016. Canada, the United Kingdom and Australia do not publish directly comparable national job totals in the market sources used here. NCFA's Canadian figures are a planning scenario, not observed results or a forecast.
How much can a Canadian company raise through startup crowdfunding?
Under NI 45-110, an eligible company can raise up to C$1.5 million during a 12-month period. An investor can put C$2,500 into one offering, or up to C$10,000 when a registered dealer determines the investment is suitable.
Would a Canadian capital formation committee replace regulators?
No. It would give regulators and other responsible bodies a recurring public record of market problems and prioritized recommendations. The bodies with legal authority would still decide whether and how to act.
This article is provided for informational purposes and does not constitute investment, financial or legal advice. Programme designs, securities rules and market data may change. Readers should confirm current requirements with the responsible regulator or programme administrator.
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 AI Powered CRM Software Is Changing Fintech Customer Engagement
Aug 3, 2026 | Artificial Intelligence And Data, Banking And Credit, Risk Compliance And Regtech
The financial technology industry is changing as users expect quick responses, services tailored to their needs and smooth digital interactions. Artificial intelligence in CRM software is helping these companies improve how they interact with users - this technology is able to analyze data, automate interactions and provide detailed information about user requirements. When businesses combine management tools with artificial intelligence, they are able to create communication strategies that are more efficient plus build more stable relationships with users.
Improving Customer Data Management
Fintech companies manage large quantities of information from transactions, account activity and digital interactions. The best CRM software helps these organizations organize and evaluate this information - identifying patterns. Businesses are able to use automated systems instead of manual reviews to understand user preferences but also create experiences that are more relevant.
Advanced platforms allow financial service providers to create profiles that show communication history, financial behaviors and service preferences - this information is useful for teams to provide specific support and make better decisions. When businesses have a clear understanding of their users, they are able to offer services that match individual requirements.
Creating Personalized Customer Experiences
Personalization is a significant part of engagement because users expect services that match their specific situations. Solutions using artificial intelligence are able to analyze interactions as well as recommend products or services based on data - this allows companies to move away from general messages and provide communication that is more useful.
Systems are also able to help businesses predict what a user needs before a problem occurs. As an example, a platform is able to identify changes in behavior so that financial teams provide information at the correct time - this method is proactive and increases satisfaction.
Enhancing Customer Support Operations
Support is a primary area where artificial intelligence is changing how companies interact with users. Automated chat tools, intelligent response systems or the integration of data allow companies to provide assistance more quickly - these technologies are able to answer frequent questions so that support teams are able to focus on more difficult concerns.
Platforms also give representatives access to important information during a conversation - this reduces the need for users to repeat their details and allows employees to provide solutions that are more effective. A support process that is efficient is able to improve trust and strengthen long term relationships.
Supporting Better Business Decisions
Fintech companies require accurate information to make decisions about products next to marketing. AI CRM provides analytics that help businesses understand trends and evaluate strategies - these details allow organizations to identify areas for improvement and change their services based on how users behave.
Selecting the most appropriate software requires an evaluation of features like automation plus data analysis. Businesses are in need of solutions that handle financial data securely. Artificial intelligence is able to help companies make informed decisions and improve their general strategies for engagement.
Increasing Automation Across Fintech Services
Automation is a useful tool for businesses that want to be more efficient and maintain consistent communication. Platforms are able to automate tasks like follow up messages but also routine notifications - this reduces the amount of administrative work and allows employees to spend more time on activities that require human attention.
Automation is also helpful for maintaining engagement throughout the time a user is with a company. From the initial signup to ongoing support, the systems are able to ensure that users receive communication on time - this consistent interaction helps businesses create experiences that are smoother.
Strengthening Security And Compliance
Security is a critical concern because companies manage sensitive financial information. Software is able to assist companies - monitoring interactions, identifying unusual activity and supporting compliance - these features help businesses manage risks while they maintain efficient interactions.
Tools are also able to improve internal visibility - providing records of communications as well as activities - this information is helpful for organizations to remain accountable and respond to regulations. When companies combine management with security features, they are able to create digital experiences that are safer.
Transforming The Future Of Customer Engagement
Artificial intelligence is changing how fintech companies connect with users - improving personalization and decision making. As digital services expand, businesses that use intelligent solutions are able to understand expectations or provide experiences that are more responsive.
The future of engagement will continue to rely on technologies that combine data analysis with efficient communication - these systems give organizations the ability to build stronger relationships. When companies use these tools, they are able to create experiences for their users that are more reliable and valuable.
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 Fintech and Alt-Finance Companies Are Making an Impact at Major Trade Shows
July 30, 2026
Image: Pexels/khezez
Fintech is no longer the "new kid" on the financial services block.
Fintech / Alt-Finance is a behemoth industry that attracts billions of dollars of investment annually. And a significant portion of this growth takes place at the trade show floor. Major fintech / alt-finance brands are exhibiting like never before to:
- Land partnerships
- Meet investors
- Get in front of decision-makers
Did you know… Trade shows are now the single most valuable marketing channel for fintech.
Here's what's inside:
- Why Trade Shows Are Fintech's Biggest Marketing Play
- What Fintech Brands Are Doing Differently On The Show Floor
- The Rise Of Alt-Finance At Major Trade Shows
- How Booth Design Is Changing The Game
Why Trade Shows Are Fintech's Biggest Marketing Play
The fintech ecosystem is booming. $44.7 billion was invested in fintech globally across 2,216 deals in H1 2025. That's billions of dollars looking for a home. Most of those deals begin with an in-person conversation at a key event.
Trade shows offer fintech brands something ads and cold emails never will: … Face-to-face conversations with actual decision makers.
Take Money 20/20 in Vegas as an example. In October 2025, during the four day event, over 11,000 attendees from 85 countries gathered together to network, learn and "create the future". From banking executives to cryptocurrency founders to policy makers, they were all in the same room.
It's no surprise, then, that events are where fintech companies invest most of their marketing budget. It's also no surprise that selecting the perfect booth builders Las Vegas company has become such an important part of doing it right. When your target demographic is walking past 500 other booths in one hallway, your booth design is what makes them stop.
Here's why trade shows work so well for fintech:
- Trust is everything: People trust brands they can meet
- Deals move faster: A 10 minute chat can beat 6 months of emails
- You see the whole market: Every competitor is right there
Pretty simple, right?
What Fintech Brands Are Doing Differently On The Show Floor
Financial technology isn't like other industries. And the most forward-thinking fintech brands know that "safe" won't fly for a corporate booth anymore.
Reason being: FinTech offerings are often digital, intangible and cannot be described in a single sentence. Therefore the booth has to carry most of the brand messaging burden. It must illustrate what the technology can do rather than tell them.
The best fintech booths in 2026 are packed with:
- Live product demos on giant touchscreens
- Interactive dashboards showing real transaction data
- Private meeting pods for investor chats
- Charging stations, coffee bars, and comfy seating
And why does this matter? Because fintech events bring senior buyers. 1 out of every 3 attendees at Money 20/20 are C-Suite Executives. You're not pitching to interns. You're pitching to CEOs, CTOs and heads of product who control budgets.
It means every square foot of your booth has to earn its keep. If a Chief Product Officer passes by and does not "get" your product in 3 seconds they will move on.
FinTech Trade show designs used to be "pretty". Now they are "functional". Create an experience.
The Rise Of Alt-Finance At Major Trade Shows
Alt finance refers to alternative finance. It is currently the fastest growing segment of the fintech industry. Alt finance consists of:
- Peer-to-peer lending platforms
- Crypto and DeFi projects
- Buy now pay later services
- Neobanks and challenger banks
- Embedded finance startups
You're seeing these companies BIG at trade shows this year. Alt finance brands have a trust issue. Consumers are still uncertain if they should entrust their money with a non-bank. Meeting the team face-to-face solves that problem overnight.
Alt-finance brands are also using trade shows to:
- Educate the market about their product
- Poach talent from traditional banks
- Build partnerships with legacy financial firms
- Get in front of regulators and journalists
Think about how buy now pay later brands have exploded in the last few years. 3-4 years ago most retailers had never heard of BNPL. Now they seem to be everywhere. And where did most of those retail partnerships come from? Trade shows.
Payments growth is another reason alt finance is exploding. $2.4 trillion in Global payments revenue was generated in 2023 alone. This number will grow to $3.1 trillion by 2028. That's trillion with a T. Alt-finance brands are battling it out to get their slice of the pie.
How Booth Design Is Changing The Game
Here's something a lot of fintech founders don't realise…
Your booth is their first experience with your product. Before they download your app or signup for a demo, they're going to see your booth. If your booth looks cheap, boring or confusing, they will assume your product does too.
That's why booth design has become so important. You want your fintech booth to feel:
- Premium: Like the brand can be trusted with money
- Modern: Like the tech is cutting edge
- Human: Like there are real people behind the code
Doing all three of those things correctly is difficult. That's where a professional booth builder comes in handy. They understand how to represent your fintech brand with an attractive booth that will draw attention for all the right reasons.
The best booth builders will help you with:
- Space planning: Where do demo stations and meeting rooms sit?
- Lighting design: Bright and clean, or moody and premium?
- Signage and branding: Messaging that reads from across the hall
- Tech integration: Screens, tablets, live data feeds, and Wi-Fi
- Traffic flow: Making sure people move through without bottlenecks
Don't leave your design decisions to the week of the show. Booths that wow are crafted weeks, sometimes months in advance.
The return on that investment is huge. One survey found that 73% of financial services firms plan to increase spending on digital marketing in 2025. Event marketing is getting a big piece of that pie because the ROI is so great.
Final Thoughts
It's safe to say that FinTech and alt-finance companies are dominating trade shows now more than ever. In fact, this trend is only going to continue growing. Billions of dollars are poured into fintech each year, and the fight for anyone's attention is getting more and more competitive. Finding ways to stand out on an overcrowded show floor has become tablestakes. Literally the difference between:
- Getting the meeting or getting ignored
- Closing the deal or losing it to a competitor
- Building the partnership or missing it completely
To quickly recap:
- Trade shows are where fintech deals actually happen
- Alt-finance brands use events to build trust and educate
- Booth design has become a make or break part of the strategy
- Investing in the right builder pays for itself many times over
Only the fintech brands taking tradeshows seriously as a bona fide marketing channel are gaining ground. The rest are just showing face.
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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Scaling Smart: Why Fintech Startups Must Prioritize Compliance Before Their First RFP
July 30, 2026
For many fintech startups, growth is measured by funding rounds, product launches, and landing enterprise customers. But as companies begin pursuing larger clients, they often discover that winning an RFP requires far more than innovative technology. Over time, procurement teams may begin to wonder whether vendors have the workplace practices needed to support long-term partnerships.
At the same time, regulatory expectations are rising. FINTRAC’s annual report 2023–24 issued 12 notices of violation totalling more than $25 million. These actions focus on financial compliance, yet they also reinforce the expectation that organizations demonstrate strong compliance practices well before problems arise. For startups looking to scale, compliance should be viewed as a business enabler rather than a box to check.
Enterprise Customers Are Buying More Than Your Technology
Enterprise procurement has changed from simply assessing financial stability. Organizations increasingly evaluate whether prospective vendors have the operational maturity to manage risk across the business.
The Government of Canada's Code of Conduct for Procurement reflects this shift by requiring suppliers to comply with human rights and labour standards, reinforcing that responsible business practices form part of supplier evaluation, not just product performance. Although many fintech startups may not pursue government contracts, the same principles often have a greater influence on enterprise procurement.
Buyers may request documentation of HR policies, employee onboarding practices, workplace training, and governance processes as part of extensive procurement questionnaires. These demonstrate that a growing company has established consistent standards, reduced operational risk, and can scale responsibly alongside its customers.
HR Compliance Supports Sustainable Growth
Rapid hiring is common during periods of growth, but expanding headcount without consistent processes can create risk. As organizations scale, clear documentation becomes crucial for maintaining efficiency across teams.
HR documentation supports the foundation for any business, including employee handbooks, onboarding processes, workplace policies, and role expectations, which help establish shared standards for employees and managers. For growing organizations, that means responsibilities regarding workplace conduct, leave policies, health and safety, confidentiality, and other expectations remain clear.
Beyond reducing administrative confusion, well-documented HR practices demonstrate that a business has built a strong infrastructure that’s prepared to scale. This level of organizational maturity becomes valuable when engaging enterprise customers, investors, and strategic partners who expect scalable internal operations alongside innovative products.
Fostering Workplace Health and Safety
For technology companies, workplace health and safety is not always viewed as important as in more traditional industries. However, modern workplace safety extends well beyond physical hazards.
- The National Standard of Canada for Psychological Health and Safety in the Workplace provides voluntary guidance for organizations seeking to promote psychological well-being and prevent workplace harm. Although voluntary, the Standard has become an important benchmark for organizations looking to build resilient, healthy workplace cultures.
- Canada's Workplace Harassment and Violence Prevention Regulations are legal expectations for federally regulated employees. These state that government workplaces must maintain certain measures. Even where these specific federal requirements do not apply, they illustrate the broader direction of workplace governance across Canada.
Embedding psychological health, respectful workplace practices, and consistent safety training into day-to-day operations helps create stronger organizations while demonstrating that employee well-being is treated as a core business responsibility.
Build Compliance Early On
Winning enterprise business depends on more than innovation alone. Procurement teams, investors, and regulators all look for signs that an organization has the workplace practices needed to support long-term growth.
For fintech startups, prioritizing compliance early helps strengthen credibility and avoid scrambling to build policies under the pressure of a major RFP. The companies that scale most effectively are often those that treat compliance as part of building a resilient business, not simply as a matter of meeting minimum requirements when opportunity knocks.
About The Author
Kim Morris is the Lead HR Consultant at Citation Canada. She supports employers and people leaders through complex workplace situations, including employee relations and conflict, performance concerns, terminations, and policy questions, with clear, practical next steps. Kim also helps organizations manage change, including restructures, acquisitions, and workforce transitions, balancing compliance with thoughtful communication. She is known for making HR feel workable, consistent, well-documented, and grounded in respect for people.
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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