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
Fintech Innovations Never Sleep at CES 2024
Innovation | Jan 12, 2024
Image by Freepik
CES 2024: Creating the Future with Fintech and Consumer Tech Innovations
The Consumer Electronics Show (CES) 2024 has been a landmark event, showcasing groundbreaking innovations with far-reaching implications for consumers and businesses, especially in the fintech sector. Below is just a taster of the plethora of creativity redefining a hyper personalized and immersive future.
1. Sony's Spatial Headset
Sony's latest mixed reality, spatial headset at CES 2024, developed in collaboration with Siemens, is a marvel in industrial metaverse technology. This headset is equipped with 4K OLED microdisplays and innovative controllers. It's designed to revolutionize manufacturing and design processes, offering immersive collaboration spaces for AI and humans. In fintech, this could transform customer service experiences, allowing for immersive financial planning and virtual client meetings, enhancing engagement and understanding.
2. Pioneering AI in Personal and Financial Assistance
The Rabbit R1, as reviewed by Tom's Guide, stands out as a compact AI assistant. It uniquely combines a Large Language Model with a Large Action Model, enabling it to not only understand complex requests but also execute them.
See: Amazon Launches ‘Q’ AI Chatbot for Businesses
This technology could be a game-changer in fintech, streamlining operations like automated customer inquiries, real-time financial advice, and efficient transaction processing, thereby enhancing customer experience and operational efficiency.
3. A Spotlight on CES 2024's Financial Tech Innovations
CES 2024 has been a hotbed for fintech innovation. TechCrunch's comprehensive coverage of the event highlights several advancements. These include AI-driven tools for personalized financial planning, blockchain-based security solutions for transactions, and next-gen payment systems that promise greater accessibility and security. Such innovations are poised to make financial services more intuitive and secure, aligning with fintech's goal of democratizing financial services.
See: Tony Robbins: Who Are You in Business? Producer? Manager? Entrepreneur?
#Moretocome
CES 2024 has set a new benchmark in technological innovation, with significant strides in fintech and consumer technology. From Sony's spatial headset to the Rabbit R1 AI assistant, these advancements are not just futuristic concepts but practical solutions poised to transform the financial sector.
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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Starbucks Controversy and Fintech Breakage
News and Insights | Jan 9, 2024
Image: Unsplah/TR
Consumer Protection Coalition Accuses Starbucks of Exploiting Customers with Gift Cards and App Payments
As reported by Fortune, Starbucks has been accused by the Washington Consumer Protection Coalition of exploiting customers through its gift card and app payments to boost corporate profits and inflate executive bonuses by keeping unspent customer balances. The group alleges that Starbucks' payment platform is designed to encourage customers to leave unspent money on their cards and apps, which over the last five years has led to nearly $900 million in unspent gift card and app money being claimed as corporate revenue by Starbucks.
See: The economics of unused gift cards
The group has called on the state attorney general to investigate whether Starbucks’ policies violate consumer protection laws. The 15 page long complaint describes Starbucks’ mobile app and digital payment cards as akin to an "involuntary subscription." Customers are required to reload money in $5 increments with a $10 minimum, making it difficult to reach a zero balance.
Starbucks disputes these claims, stating that customers can pay for their purchases with the remaining balance on the app or gift card and then pay the rest in cash at the store. The Starbucks app has become increasingly important for the company, with drive-through and app orders making up the majority of the company’s purchases.
The Commonality of Gift Card 'Breakage'
The issue highlighted in the Starbucks case, where customers end up with small unspent balances on their gift cards or digital payment apps, is not unique to Starbucks but can be a common issue with many gift cards and digital payment platforms called 'breakage'. Companies often count on a certain percentage of gift card balances never being redeemed 'breakage', which can become a significant source of revenue. This practice is legal and common in the retail industry.
See: Affirm Launches BNPL Gift Cards & OCC Issues Guidance
Some gift cards have expiration dates or charge inactivity fees, which can also lead to loss of funds for the consumer. Various jurisdictions have consumer protection laws that govern the use of gift cards. These laws can include requirements for clearly stating terms and conditions, limiting expiration dates, and restricting inactivity fees.
Some companies may allow customers to cash out small balances, while others may require the balance to be used in-store.
Fintech Solutions Offer Donation and Investment Options
Several fintech startups and initiatives are addressing the issue of gift card breakage by providing options for consumers to donate or invest their remaining balances. Here are some examples:
- DonateStock: This startup simplifies charitable giving, including the donation of stocks, offering a morally gratifying way to contribute to causes while potentially reducing taxes.
- Jifiti: Jifiti provides services for retailers to handle gifts and gift registries, potentially addressing the issue of unwanted gift cards by offering more flexible gifting options.
- Betterment: An online investment company that features a charitable donation feature, allowing users to gift shares to nonprofits, ensuring full donation utilization.
- Pennies: A UK-based charity that allows consumers to donate small amounts, addressing the issue of small remaining balances on gift cards.
Closing Thought
The issue of gift card breakage, highlighted by the recent Starbucks case, underscores the need for more consumer-friendly solutions in the world of digital payments.
See: Canada’s Top FinTechs: Deloitte’s 2023 Fast 50
Fintech startups are leading the way in offering innovative options for consumers to utilize their remaining balances, whether through charitable donations or investments. These developments not only enhance consumer experience but also contribute to a more socially responsible approach to finance.
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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Climate Finance Contest Towards Net-Zero Banking
Contest | Jan 9, 2024
Image: Climate Safe Lending Network website
The Climate Safe Lending Catalyst Contest presents a remarkable opportunity for innovators worldwide, including Canadian fintechs, to contribute to the transition of the banking sector towards a net-zero future.
The Climate Safe Lending Network has launched the Climate Finance Catalyst Contest to encourage practical ideas that will help banking institutions transition to a net-zero future. This contest is a crucial step in moving from planning to practice in the journey towards a climate-safe world.
See: Decarbonizing Insurance and the Adaptation of Carriers to a New Zero Economy
This contest is an excellent platform for Canadian fintechs to showcase their innovative solutions in sustainable finance. Participation not only offers the chance to make a significant impact on the global banking sector's transition to net-zero but also provides an opportunity for recognition and collaboration with industry leaders. Canadian fintechs with a vision for a sustainable future should consider this opportunity to contribute their ideas and be part of this transformative initiative.
Contest Categories
The contest focuses on three main areas:
- Go Faster: Ideas for supporting accelerated transition within banking institutions and their clients.
- Go Further: Enabling finance for new and innovative climate solutions.
- Go Fairer: Approaches ensuring a socially just transition for all.
Eligibility and Criteria
- Who Can Enter: Open to anyone worldwide, from students to professionals, regardless of geography or sector.
- Criteria for Ideas: Ideas must be implementable, bank/financial institution-focused, innovative, influential, effective, and timely (implementable within 3-6 months).
See: Duuo by Co-operators: A New Era of Embedded Insurance for Canadian Businesses
Submission and Judging
- No Entry Fee: There is no fee to enter the contest.
- Submission Process: Entries are submitted through a Typeform application, detailing the solution, innovative approaches, scalability, and targeted systemic impact.
- Judging Process: Submissions are reviewed on a rolling basis, focusing on innovation & relevance, scalability, and systemic impact.
Key Dates
- Submission Deadline: 12th January 2024
- Shortlist Announcement: 29 January 2024
- Final Winners: March 2024
See: Survey Results: Unlocking Green Growth Opportunities for Retail Banks
Why Participate and Contact Info
- Recognition: Gain recognition among industry leaders in green finance.
- Publicity: Opportunities for publicity through CSLN social channels.
- Impact: Be part of the solution in transforming the finance industry towards sustainability.
For more details or queries, participants can contact the Climate Safe Lending Network team at connect@climatesafelending.org.
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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U.S. Seed Fundraising Insights and Trends
Funding Report | Jan 4, 2024
SEC Advocate of Small Business Capital Raising 2023 report
The SEC's Office of the Advocate of Small Business Capital Formation 2023 Report - Insights and Trends to Help Prepare for Fundraising in 2024
Understanding the nuances of seed fundraising in the United States is crucial for entrepreneurs and investors alike. At the National Crowdfunding & Fintech Association (NCFA) Canada, we recognize the significance of these early-stage investments as a cornerstone for innovation and growth.
See: Canada’s Top FinTechs: Deloitte’s 2023 Fast 50
From the dizzying highs of record-breaking deal values to the more tempered climate of today, the seed stage has mirrored the venture life cycle's ebbs and flows. However, despite these fluctuations, the U.S. continues to present a fertile environment for seed-level investments.
Seed Fundraising Count and Value
| Year | H1 Deal Value (Billion $) | H2 Deal Value (Billion $) | H1 Deal Count | H2 Deal Count |
|---|---|---|---|---|
| 2018 | $5.4 | $4.3 | 2,230 | 2,223 |
| 2019 | $5.0 | $5.1 | 2,287 | 3,490 |
| 2020 | $5.6 | $5.9 | 3,328 | 3,209 |
| 2021 | $8.8 | $9.8 | 2,585 | 2,386 |
| 2022 | $14.0 | $10.0 | 1,982 | 1,980 |
| 2023* | $6.6 | N/A | 1,810 | N/A |
*Data for 2023 is as of June 30.
Total Capital Raised by Private Companies 2023 (excl pooled investment funds)
U.S. Private companies raised $662 billion through private securities exemptions as of June 30, 2023. This represents 39% of the total capital raised year to date. An additional $1 trillion or 61% was raised by U.S public companies.
See: CIC Launch Delayed Impacting Innovation Funding Landscape
Here's a more detailed breakdown of the $662 billion by exemption type:
- Regulation D 506(b): $259 billion
- Regulation D 506(c): $16 billion
- Regulation A: $1.4 billion
- Regulation Crowdfunding (Reg CF): $352 million
- Rule 504: $200 million
- Other exempt offerings: $385 billion
Regulation Crowdfunding (RegCF)
Regulation Crowdfunding has emerged as a vital pathway for capital raising, particularly for small businesses, women founders, founders of color, and companies located outside traditional investment centers. Its impact on the capital formation landscape is marked by its contribution to diversity and geographical inclusivity.
Total number of U.S. counties with crowdfunded companies is increasing:
2020: 137 counties
2021: 220 counties
2022: 273 counties
Image: SEC Small Business Advocate 2023 Annual Report - Regulation Crowdfunding by State
See: U.S. RegCF Trends: Investment Engagement by Age
Regulation Crowdfunding data from 2022
Total Capital Commitments in 2022 was $506.7 Million (down 10.2% from 2021)
Average Investor Check Size was $1,578
Average Raise Per Campaign in 2022 was $428,486 (down 5.9% from 2021)
71.5% of offerings in 2022 exceeded their minimum funding targets
28.5% of offerings in Q3 2022 had at least one woman founder
70% of the capital was distributed outside the top 10 capital hubs
25.2% of offerings in Q3 2022 had at least one founder of color
The Evolving Seed Fundraising Climate
In this climate, entrepreneurs are encouraged to explore a variety of funding sources, including crowdfunding, angel investors, and early-stage venture funds. The current climate favours startups with sustainable, long-term growth strategies, pushing entrepreneurs to build more resilient and adaptable business models. This environment has spurred the development of more robust support systems for early-stage companies, including incubators, accelerators, and mentorship programs.
See: AI Metamorphosis in Venture Capital
The period leading up to 2022 saw a surge in deal values, reflecting an investor confidence that propelled startups to new heights. However, this trend has since normalized, aligning with a more cautious investment approach in the face of global economic uncertainties.
Seed investors are broadening their horizons, with a wider geographical reach between companies and lead investors. This expansion signifies a growing openness to exploring opportunities beyond traditional tech hubs, a boon for startups situated in less prominent locations.
The path from seed to Series A funding has become more arduous, with a notable increase in the time taken for this transition. This change underscores the need for seed-stage companies to demonstrate more robust business models and clearer paths to profitability.
Outlook
The expanding geographical reach of seed investors and the growing importance of Regulation Crowdfunding underscore a diverse and inclusive funding landscape. For startups, the emphasis is on building sustainable, adaptable business models that can withstand the challenges of transitioning from seed to Series A funding. The insights gained from this year's funding trends are invaluable for stakeholders aiming to thrive in this ever-evolving ecosystem.
Download the 128 page PDF report --> here
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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How to Navigate Small Business Insurance: A Beginner’s Guide
Dec 28, 2023
Image: Unsplash/Scott Graham
Starting and running a small business involves numerous responsibilities, and one critical aspect that should not be overlooked is insurance. Small business insurance is a safeguard against unexpected risks that could jeopardize the financial health of your enterprise. In this beginner's guide, we will explore the fundamental aspects of navigating small business insurance, helping you understand the types of coverage available, how to assess your business needs, and the essential steps to secure adequate protection.
Understanding the Basics: Types of Small Business Insurance
Before delving into the specifics, it's crucial to understand the primary types of small business insurance. These typically include:
• General Liability Insurance: Protects your business from claims of bodily injury, property damage, and personal injury. It's a foundational coverage that many businesses opt for.
• Property Insurance: Covers damage to your business property, including buildings, equipment, and inventory, due to events like fire, theft, or natural disasters.
• Professional Liability Insurance: Also known as errors and omissions insurance, it provides protection against claims of professional negligence or mistakes in your services.
• Workers' Compensation Insurance: Mandatory in many places, this coverage helps with medical expenses and lost wages if an employee is injured or becomes ill while working.
• Business Owner's Policy (BOP): Combines general liability, property, and often business interruption insurance into a single package, offering comprehensive coverage at a more affordable rate.
Assessing Your Business Needs
The insurance needs of each small business can vary based on factors such as industry, size, location, and the nature of its operations. In order to choose a business insurance policy, you’ll need to conduct a thorough risk assessment to identify potential hazards and liabilities specific to your business. Consider the following questions:
1. What are the main risks associated with my industry?
2. Do I have physical assets that need protection?
3. Does my business provide professional services, exposing it to liability claims?
4. How many employees do I have, and what are the potential risks associated with their roles?
By addressing these questions, you can pinpoint the types of insurance coverage that align with your business's unique needs.
Comparing Insurance Quotes and Customizing Coverage
Once you have a clear understanding of your insurance needs, it's time to start shopping for coverage. Obtain quotes from multiple insurance providers, and don't hesitate to ask questions about policy specifics, coverage limits, and deductibles. Consider factors beyond cost, such as the insurer's reputation, customer service, and the ease of the claims process. Furthermore, work closely with your insurance agent to tailor your coverage to meet the unique risks associated with your industry. For example, if you operate a home-based business, you might need a rider to your homeowner's policy to cover business-related assets.
Ensuring Compliance with Legal Requirements
Certain types of insurance, such as workers' compensation, may be legally mandated depending on your location and the size of your business. Ensure that you comply with all legal requirements to avoid penalties and legal complications. Additionally, some clients or partners may require specific insurance coverage as a condition of doing business, so be prepared to meet those contractual obligations.
Regularly Reviewing and Updating Coverage
As your small business evolves, so too will its insurance needs. Regularly review your coverage with your insurance agent to ensure that it remains aligned with your current operations and any changes in your business structure. Failure to update your coverage could leave you vulnerable to unforeseen risks.
Image: Unsplash/Scott Graham
Small business insurance is a vital component of your overall risk management strategy. By understanding the basics, assessing your business needs, comparing quotes, customizing coverage, ensuring compliance, and regularly reviewing and updating your policies, you can navigate the complexities of small business insurance with confidence.
See: Decarbonizing Insurance and the Adaptation of Carriers to a New Zero Economy
Taking proactive steps to protect your business today can make all the difference in securing its future success.
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, arti
ficial 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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Montreal’s Notman House (OSMO Foundation) in Crisis
Montreal Ecosystem | Dec 18, 2023
Image: Unsplash Jametlene/Reskp
The OSMO Foundation, responsible for Notman House, is grappling with $323,000 unpaid mortgage fees, owed to the Business Development Bank of Canada (BDC) and Investissement Québec (IQ)
As first reported by Le Devoire, and then Betakit, the Notman House, a cornerstone of Montreal's startup ecosystem, housed in a historic 187-year-old building, faces a dire situation and potential sale.
Since its inception in 2011 by Real Ventures and the OSMO Foundation, the only hub of its kind in Montreal, Notman House has been more than just a building; it has been a vibrant hub for tech startups, offering co-working and event spaces, and fostering collaboration and innovation.
See: Canada’s Ranks 15th on WIPO 2023 Innovation Index
Despite initial support from federal, provincial, and municipal governments, along with private donors, the foundation has struggled with financial burden. The situation worsened with the onset of the pandemic and the accompanying economic pressures, leading to a loss of major sponsors and increased financial strain. The future of Notman House now hangs in the balance.
Philippe Telio, Startupfest founder and OSMO board member:
“It’s not like the financial hill is so large that it’s impossible to imagine that somebody could come in and step in and save this. So in that sense, yes, it’s very possible that an individual or a group of individuals can come together and figure out how to solve the financial issues.”
See: Fintech Cadence receives $400,000 government grant to help Québec Fintechs build and scale
The situation is made more complex by the emergence of a new initiative, Ax-C, set to open in December 2024 with substantial $48 million government backing. Ax-C aims to fulfill a similar role to Notman House but with institutional ties to the École de technologie supérieure (ÉTS), which Notman lacks.
Outlook
The potential sale of Notman House raises concerns about the continuity and preservation of Montreal's tech ecosystem. Notman has been a symbol of organic, community-driven entrepreneurship, uniquely positioned outside the downtown financial district, making it more accessible and integral to the city's startup culture.
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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OpenAI’s Converge 2 Startup Funding and ByteDance Controversy
AI | Dec 17, 2023
Image by Freepik
OpenAI's innovative funding program for AI startups and the controversy surrounding ByteDance's use of GPT models.
Converge 2
Through its Startup Fund, OpenAI is offering a $1 million funding boost to selected startups, along with exclusive informational and educational resources. This program, known as "Converge 2" is the second iteration following the successful inaugural session in December 2022.
Converge 2 is a six-week program, offering a blend of remote and in-person interactions in San Francisco, running from March 11, 2024, to April 19, 2024 and requiring a time commitment of approximately 4-6 hours per week. The program includes tech talks, office hours, social events, and interactions with leading AI practitioners and startup founders.
The application process is straightforward, requiring minimal information about the applicants and their ideas. Importantly, OpenAI does not mandate the use of its APIs for products like GPT-3.5/4, ChatGPT Plus, Codex, or DALL-E. This approach underscores OpenAI's commitment to fostering a diverse range of AI innovations, not limited to its own technological ecosystem.
See: Sam Altman Reinstated as OpenAI CEO After Workforce and Investors Revolt
The program is designed for exceptional engineers, designers, researchers, and product builders using AI to reimagine the world, focusing on exploring opportunities and challenges in cutting-edge AI development. OpenAI encourages founders from all backgrounds, disciplines, and experience levels to apply, especially highlighting interest in founders from underrepresented backgrounds and those based outside the United States.
The ByteDance Controversy
In a contrasting development, OpenAI recently suspended the account of ByteDance, the parent company of TikTok, after it was found to be using GPT-generated data to train its own AI model in China. This move came as a response to ByteDance's violation of OpenAI's developer license, which stipulates adherence to specific usage policies. (See the future of AI policy in China)
ByteDance's actions also raise questions about the responsible use of AI technologies and the importance of adhering to licensing agreements, especially when it comes to developing competing models.
See: EU’s Landmark AI Regulation Deal
Outlook
The above contrasting narratives offer valuable insights into the current state of AI development. On one hand, OpenAI's Converge 2 program supports innovation and nurturing diverse and innovative AI startups. On the other, the ByteDance incident underscores the need for ethical governance and responsible use of AI technologies.
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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