Karsten Wenzlaff, Advisor
August 26th, 2025
Crowdfund Insider | | Jan 19, 2021
Why are smart contracts significant?Traditionally, parties have relied on intermediaries, such as escrow agents, banks, or governments, to ensure the performance of a contract (or that a party didn’t simply run off with your cash). Smart contracts eliminate the role of intermediaries because they are both self-executing and self-enforcing. The entire transaction is dictated by computer code alone. By cutting out the “middleman,” transaction fees are dramatically reduced, while transaction speed is dramatically increased. Parties can now make a wide variety of agreements without fear that the agreement will be dishonored.
Blockchain-based smart contracts are quickly becoming a common method of transacting. Since 2018, private parties have increasingly used smart contracts to tokenize assets and execute the terms of commercial loans and securities lending transactions, such as “repo” swaps of U.S. Treasury bonds.
In the near future, smart contracts may be used in an even greater variety of transactions involving international trade finance, derivatives markets, mortgages, and auto leasing. With their ability to instantaneously execute and settle transactions, smart contracts have the potential to increase the liquidity of traditional credit markets, as well as creating entirely new ones in intraday lending. The possibilities for creating new deal types and methods of transacting business are endless.
The self-enforcing feature of smart contracts may also have significant consequences for the Internet of Things. Take for instance a car lease stored on blockchain, where the financing company is entitled to automatically disable, or even seize, the vehicle if the lessee defaults on a payment. Once autonomous vehicles hit the road, one can imagine a delinquent lessee returning to the parking lot only to find his vehicle has literally driven itself back to the bank. Smart contracts may ultimately spell the end of the “repo man,” as well as a number of other professions.
Traditional legal frameworks act as road maps for parties to create legal interests and rights when entering into an agreement. However, they are often subject to different – and sometimes conflicting – requirements. When a transaction shares the characteristics of different legal frameworks, disputes between parties can arise.
Smart contracts have the ability to capture and transfer assets from one party to another. As such, they can conflate contract law with other legal frameworks, such as property, secured transactions and entity law. For instance, contracts are typically private agreements in which the rights of third parties are unaffected. As such, the terms of a contract may be kept confidential. A smart contract, however, can put assets out of the reach of third parties that claim an interest in them. Property law has the ability to affect third parties’ rights. However, property rights require the giving of notice to be enforceable against third parties, such as by recording a deed or mortgage at the county clerk’s office.
A smart contract may also share the characteristics of a secured transaction governed by Article 9 of the Uniform Commercial Code (UCC).
Imagine a smart contract where a creditor extends a loan to a debtor and takes as collateral a “secured interest” in the debtor’s personal property, such as a vehicle, patent or valuable artwork. This same smart contract may also contain a self-enforcing protocol that uses blockchain to automatically capture and transfer the collateral to the creditor if the debtor fails to repay the loan on a certain date.
Smart contracts could also provide protections only available under entity law. Unlike a security interest, which prioritizes competing claims between creditors, entity law can completely shield assets from creditors’ claims. By incorporating and respecting corporate formalities, business assets of a corporation are placed beyond the reach of the creditors of the corporation’s owners. This ability is unique to entity law, and arguably its most important feature. However, a smart contract may have the same effect without requiring incorporation.
As smart contracts become more commonplace, parties must have confidence that they are creating intended legal interests and rights. As such, new regulations must be enacted to account for how blockchain and tokenization intersect with traditional legal frameworks – or perhaps create new ones.
This process has already begun at the state level, where states like Arizona and Tennessee have enacted laws to define smart contracts and recognize electronic signatures secured by blockchain technology as valid and enforceable. Wyoming has gone even further, amending its state commercial code to specifically define and classify digital assets, and to establish requirements for the perfection of a security interest in a tokenized asset. However, these states remain the exception, not the rule.
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, 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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Scott Gallway | Jan 8, 2020

As our institutions have retreated, private capital has emerged as a shadow government. Banks command our economy, the shareholder class commands the politicians, and big tech reigns over it all. Our idolatry of innovators equates wealth with virtue, and does not hold the innovator class, or their firms, to the same standards as old economy firms (or the general population). Twenty-four hours after a failed coup, the lead story on Twitter is Elon Musk becoming the wealthiest man in the world.
When Trumpism began its march, it wasn’t the government or the media that we turned to for help, but big tech. Today, we plead with @jack to suspend the President’s account. The FBI, voters, our laws … all of them sit secondary to thirty-something innovators who hold the real power: algorithms that decide who sees what, how often, and from whom.
In this rudderless environment, where information flow is not a public good but a revenue stream, is it any wonder that misinformation — call it what it is, disinformation — has taken hold?
What can be done? A virus should be monitored. An epidemic must be cauterized.
The striking arrogance of our American exceptionalism allowed us to ignore the virus of fringe ideas fueled by algorithms and profit. The sight of a mob overrunning the U.S. Capitol, under the direction of a U.S. President, forces us to acknowledge that we have an epidemic that demands swift, severe action(s). Put another way, putting the President in a social media timeout is insufficient.
We need greater attribution and accountability. President Trump should be stripped of power immediately. The incitement of violence against a co-equal branch of government is grounds for impeachment, conviction, and removal from office by Congress. If he had just one day left in office, Trump would still be a clear and present danger to the republic. More importantly, the first declaration in years that our leaders face consequences for their actions should be in bold type.
If there is any question that big tech is our new government, then register that these are the only entities whose actions seem to have a meaningful impact (or what we view as meaningful). Which has had more impact? Futile discussions about the Twenty-Fifth Amendment, or Facebook and Twitter suspending President Trump’s accounts and Shopify closing MAGA stores? Applaud these actions if you like, but accountability for sedition should not be meted out by private companies (in the case of Shopify, a foreign one). We should not be pandering to part-time CEOs to save the nation they demonstrate no regard for.
In The Basic Laws of Human Stupidity, former Berkeley professor Carlo M. Cipolla posits that a stupid person causes damage to others while deriving no gain, or even possibly incurring losses. We invariably underestimate the number of stupid individuals in circulation as the probability that a certain person is stupid is independent of other characteristics or credentials (e.g., they can have a Ph.D. or be President). We (the non-stupid) are vulnerable to the stupid and their actions as we find it difficult to imagine and understand — or to organize a rational defense against — an attack that lacks rational structure or predictable movements. Or, as Friedrich Schiller put it, against stupidity the gods themselves fight in vain.
At a deeper level, we must find ways to reassert the primacy of truth and reason in our discourse. No sooner had the mob been cleared from the halls of Congress than did Representative Matt Gaetz take to the podium to knowingly spread disinformation: that facial recognition determined the mob was Antifa. (It wasn’t.) Elected officials who knowingly spread disinformation should be censured and denied federal and state matching funds for their next election.
We are justifiably concerned about the declining state of math and science education, but it won’t be enough to teach more calculus. We need to teach our kids the tools of science: statistics, critical thinking, and then … civics. Mark Zuckerberg is what happens when you replace civics with computer science. We must also find a way to inculcate empathy and commitment to the commonwealth in the next generation, as the evolution of our economy leads to dispersion and segregation.
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, 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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Holt Accelerator | Jan Arp | Jan 6, 2021

Holt’s mission is to develop a more competitive fintech ecosystem in Canada to foster financial innovation. An overlooked focused area. Our research from hundreds of Holt Advisors, our digital events, and pre-covid travels across the globe discovered three key pillars are affected, resulting in Canada's positioning trending from global leader to follower.
In an industry that moves exponentially fast, regulation can cause friction. It creates barriers through uncertainty in the development process, unclear regime, and setting primary conditions that become obsolete quickly.
Take the drawn-out and delayed Open Banking process. As a result, our market isn’t benefiting from fintechs already serving this infrastructure. Why didn’t we continue to drive forward ten years’ worth of research on CBDC instead of waiting for other nations to catch up and pass us? While Open Banking gets most of the attention, other fronts would benefit from improvement. Streamlining inter-provincial regulations, improving market access for innovators, and loosening restrictions on banking/payment licenses (similar to Europe) would also help build a more competitive fintech ecosystem.
How can we create the support systems for growth stage fintechs, who are often left out of the current ecosystem?
The government must lead by example and act as the first customer to particular homegrown fintechs (e.g., PPP program in the US). They must also develop a system of incentives for these incumbents to work with fintechs and modernize themselves, improving venture investing liquidity ratios. Furthermore, stakeholders within Canadian fintech need to be included at the table when these new rules are being drawn up. These discussions need to be transparent and have to result in tangible action items with a set timeline.
Stifling innovation means it will eventually die off. Consequently, our financial institutions will be reliant on financial technologies from the US, Europe, or elsewhere as they struggle to catch up with the rest of the world.
Financial institutions play a huge role here. They must look into improving outcomes of innovation objectives, with data-driven marketing being an activity of said objectives but not the primary aim. For instance, setting goals and then optimizing processes to achieve these results and leverage. From here, diversifying your tactics to achieve these results (i.e., CVC, hackathons) are all welcomed as long as there’s alignment to the ultimate objective.
See: NCFA Response to the Modernizing Ontario’s Capital Markets Consultation Taskforce
Security is and should always remain a top priority. While it’s fair game to make sure system vendors (i.e., fintechs) are well compliant here, there should be budgets for fintechs to help them deliver their solution securely to the banks’ standards. Additionally, there are many opportunities around data processing and several secure methods to analyze a Financial Institution’s data without jeopardizing its customers’ privacy and security.
There are too few options for startups in need of venture capital when considering stage and industry. Over the short-term, there is a reluctance to invest, even with a decrease in valuation. You notice this behavior in early-stage financing (especially seed), which ultimately defeats the purpose as it takes capital to build startups.The government must continue to support R&D programs to help our startups, a significant funding source for early-stage companies, while also supporting the woes in commercializing R&D properly in Canada. Rubber stamping of IRAP has been very helpful, but we need greater transparency around who is taking advantage of it, and who has been hindered.
Improved targeting programs for early-stage startups is required, as France did with a €4B plan to support startups, or better streamlining the abundance of government investment programs.
The Canadian people have shown great tenacity and teamsmanship throughout the pandemic and in combination with directed efforts and precise planning Canada has an amazing pool of talent that can continue to help build a robust ecosystem and become a global contributor in financial innovation.

About the author: Jan Arp, Founding Managing-Director at Holt, is a global expert in this space and works towards helping Canadian Financial Institutions & Services embrace financial innovation in a meaningful way. One that pays off for both their customers and bottom line.
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, 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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Fast Company | Andrew Vasylyk | Dec 2020

Founders looking for guidance are faced with too much information. Google any startup related question and open up a few links, it’s quite likely that you’ll find conflicting advice. Similarly, there’s a good chance that if you go out and ask people yourself you’ll hear opposing thoughts. What should founders do? Who should they listen to? Let’s look at a few examples.
“If I had asked people what they wanted, they would have said faster horses.” –Henry Ford
This quote is often used to argue that customers don’t really know what they want and asking them about it is pointless.
Henry Ford isn’t alone in such thinking. In his 2018 letter to shareholders, Jeff Bezos wrote,
“Market research doesn’t help. If you had gone to a customer in 2013 and said, ‘Would you like a black, always-on cylinder in your kitchen about the size of a Pringles can that you could talk to and ask questions, that also turns on your lights and plays music?’ I guarantee you they’d have looked at you strangely and said, ‘No, thank you.'”
On the other hand, the Lean Startup methodology, which is by far the most popular framework for starting companies, takes a seemingly opposite approach in which customer feedback is the main driver of your product and, in many ways, your entire business.
“I’m convinced that about half of what separates the successful entrepreneurs from the non-successful ones is pure perseverance.” –Steve Jobs
Perseverance, grit, and tenacity are some of the most important traits of successful entrepreneurs. At the same time, having enough self-awareness to say “no” or “enough” is just as crucial.
Unfortunately, there is no universal list of things that are or are not worth chasing. It’s a call that founders have to make, usually relying on two things:
“Good artists copy, great artists steal.” –Pablo Picasso
To outsiders, Silicon Valley is synonymous with innovation. Startup founders are seen as contrarian geniuses who create unique solutions and first-of-a-kind products. But in reality, the world of tech is full of copycats. For example Instagram Stories and Snapchat, Uber and Lyft, Apple and Xiaomi, Indiegogo and Kickstarter, etc. Should you take the lead or follow others? Ideally, do both. Your product should be familiar, but different.
“Timing is that element of your startup growth mix which is not under your control. You know the ‘how’, but it is the ‘when’ that deludes you.” —Bill Gross
For startups, timing is critical. It may be the single biggest factor, accounting for as much as 42% of the final outcome. A guaranteed way of not being too late is to be the first. In Zero to One, one of the most popular book on startups, Peter Thiel argues that founders should not enter markets where competitors already exist. On another hand, the advantages of being first may not justify the risk. For example, Apple is known for rarely being first, and they’re certainly not struggling.
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, 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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Luge Capital | Karim Gillani and Laviva Mazhar | Dec 22, 2020
The global InsurTech startup ecosystem saw record-breaking level of investments of US$2.5 billion in Q3 2020. Despite a slow start in the first quarter of the year, due to the impacts of COVID-19, global InsurTech funding for 2020 has already surpassed $5 billion and is likely on track to match the 2019 figure of $6.3 billion.
Our Luge Capital data for Canada, presented in our Status of the Canadian InsurTech Landscape report, shows that $1.2 billion of venture capital has been invested in InsurTech startups headquartered or operating in Canada between 2011 and H12020. The number of InsurTech startups founded in the last few years has also picked up significantly.
So why is there so much buzz about InsurTech? Why are entrepreneurs choosing to dedicate their resources to build solutions for this industry? Why are investors bullish on this category? Some of the key drivers of heightened activity in this sector are discussed below.
The Canadian insurance industry wrote in excess of $187 billion in premiums through Property & Casualty (P&C)2 and Life & Health (L&H)3 in 20194. Together, the P&C and L&H insurance sectors paid out
$144.5 billion in claims or benefits to Canadians in the same year. Globally, the industry placed more than US$6 trillion in premium in 20195. The sheer size of the industry in itself attracts both entrepreneurs and investors aspiring to build massive businesses.
Many insurers still have legacy core systems built on monolithic, on-premise applications. This poses several challenges including time-consuming maintenance, lack of scalability and an inability to be fast and nimble. Today’s customer expectations demand rapid innovation, and this is difficult to achieve with siloed databases and inflexible core systems. In addition, historically, IT spend has been viewed by many insurance leaders as a cost-centre6. The industry is being forced to completely shift its mindset to view technology as an avenue for faster time to market and superior customer experience. But this is not going to happen overnight.
Enter InsurTech startups, who take a technology-first approach to insurance and build their software on cloud-based architectures, allowing them to go to market fast and innovate quickly.
Entrepreneurs have identified an opportunity to make the process of buying and keeping insurance suitable for today’s consumers, who now expect Google, Amazon and Uber-like experiences. Other entrepreneurs and investors see the opportunity to help incumbent players such as insurers and brokers bring their customer experiences up to par.
Yet other startups are helping insurers with automating their internal processes, and improving their underwriting and claims functions. Gartner expects the global IT spending of insurance companies to be US$222 billion in 2020 and forecasts the IT software sub-segment to grow at 8.4% CAGR between
2019-20247. This demonstrates the growing demand for software from insurers.
Whether it’s in distribution, process automation, underwriting or claims, there is an opportunity for technology startups to drive innovation in the industry.
Data and underwriting are the lifeblood of insurance. Yet, historically, insurers have used a pre-defined and limited set of data to underwrite policies. This worked fine for the last 100 years. However, today’s consumers want significant personalization, which can only be provided with the use of contextual data. Increased access to alternative data as well as structured data have opened up a whole world of possibilities when it comes to better personalization of insurance products and experiences.
To that end, InsurTech startups have identified an opportunity to either become the provider of such alternative data to incumbent insurers, or compete head-on against such incumbents to use contextualized data and provide a better experience themselves.
The average age of a life insurance agent in the U.S. is 598 and this is comparable to the talent demographic in the Canadian insurance industry. As a large part of the insurance workforce starts to enter retirement, the industry is facing growing challenges with replacing that talent. There is an opportunity for technology companies to help insurers and brokers continue to deliver their topline numbers in a scalable way with a smaller workforce. In fact, the use of modern technologies may even work to attract a younger talent demographic to this industry.
As the ease of insurance product distribution accelerates with the help of technology, we may eventually reach a point where insurance products themselves become commoditized due to competitive pressures. Insurers will need to find other ways to differentiate from competitors by offering superior customer service, smooth claims experience and add-on services. Many InsurTech startups are building technology solutions to help insurers differentiate in those respects and build brand loyalty.
The InsurTech space is beginning to see some mid-to-large startup exits. To make matters even more interesting, some of these startup exits have happened within just a few years of operations. For example, earlier this year, Lemonade went public with a valuation of US$1.6 billion and the shares soared 139% on the first day of trading9. Prudential acquired Assurance IQ for US$2.35 billion last year10. As investors, we believe that the industry will continue to see more acquisitions as incumbent players use M&A as a strategy to add new technologies and revenue.
These are some of the key factors driving innovation and venture funding in InsurTech. We expect this category to continue to grow from a funding and M&A perspective for the next few years.
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, 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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