Category Archives: Venture funding Best Practices

Cambridge launches the Global Alternative Finance Industry Benchmark & Covid-19 Rapid Assessment Survey in Partnership with World Bank Group and World Economic Forum

share save 171 16 - Cambridge launches the Global Alternative Finance Industry Benchmark & Covid-19 Rapid Assessment Survey in Partnership with World Bank Group and World Economic Forum

Cambridge Centre for Alternative Finance | Tania Zielgar | Jun 17, 2020

Global Benchmarking and Covid 19 Survey Banner - Cambridge launches the Global Alternative Finance Industry Benchmark & Covid-19 Rapid Assessment Survey in Partnership with World Bank Group and World Economic ForumNCFA Intro:  NCFA is please to provide continued support as a National industry partner of the Cambridge Centre for Alternative Finance research initiatives in Canada.  It's absolutely essential that data and research be collected and anlayzed to help identify trends, inform policy and understand the state of industry during these times of global risk and innovative change.  We strongly advise all fintech firms, research partners and anyone who is able to help this important survey collection initiative by completing the survey and sharing it widely among your network.

Overview of the Global Alternative Finance Industry Benchmark & Covid-19 Rapid Assessment Survey

For the past several years, the CCAF has produced comprehensive industry-focused research on the evolution of alternative finance; documenting and analysing the development of Crowdfunding, P2P/Marketplace Lending and other FinTech markets from across 190 countries.

This year’s benchmarking survey will also include the recently launched The Global Covid-19 Fintech Market Rapid Assessment Study, in partnership with the World Bank Group and the World Economic Forum. The empirical data collected will be used to understand Covid-19’s impact on the FinTech markets, how the global FinTech industry has responded and some of the immediate regulatory and policy implications. This research program has resulted in 20 reports, which are disseminated freely to inform policy and raise public awareness of alternative finance. This research has provided unique detail and insight into the changing FinTech landscape, creating a valuable evidence-base for policymakers, regulators, and industry stakeholders to utilize when evaluating the FinTech ecosystem within their local context or from a globally comparative perspective.

The Fintech landscape is changing rapidly as a result of Covid-19. This report, and the historical data on this industry more broadly, provide signposts as to the general development trajectories of firms when faced with this pandemic, and where strengths and weakness may lie.

The survey will hence include two key components:
1.    Time-series data required to continue the CCAF long-standing tradition of benchmarking and scoping the industry (referring to your 2019 activities), and
2.    Covid-19 focused time-sensitive data on a) market performance, b) regulatory needs & policy asks, and c) operational changes & implications.

The long-term impact of Covid-19 is yet to be known. By coupling longitudinal data with this research initiative, we can begin to test the resiliency of this market and provide clear, evidence-based assessments on how the sector will continue to develop.

As with all our reports, the Global Covid-19 Fintech Market Rapid Assessment (anticipated publication Q3) and the Annual Global Alternative Finance Industry Report (Q4) will be made available to the public and actively disseminated to provide key insights to regulators, policymakers and key industry stakeholders.  

Cambridge global benchmarking survey taxonomy - Cambridge launches the Global Alternative Finance Industry Benchmark & Covid-19 Rapid Assessment Survey in Partnership with World Bank Group and World Economic Forum

Thanks in advance for your contribution to the study:  Take the Survey Now

https://jbs.eu.qualtrics.com/jfe/form/SV_7PRyNSA3B5IKIrX

The Covid-19 pandemic presents both serious challenges and potential opportunities for the global FinTech industry to grow and scale, with the long-term effects yet unknown. By coupling the CCAF’s longitudinal data with this exciting research initiative, we can begin to test the resiliency of this market and provide clear, evidence-based assessments on how the sector will continue to develop.

This Study will provide a global assessment of the FinTech ecosystem’s responses to the Covid-19 pandemic, with particular attention to the industry’s response to challenges and their regulatory and policy concerns.  This survey will result in a jointly published report between the CCAF, World Bank and World Economic Forum, and will be made available online.  You can find further information on the Study in the accompanying press-release.

The survey will close on July 31st. If you have any questions or comments, please feel free to contact the CCAF research team directly:  Tania Ziegler (t.ziegler@jbs.cam.ac.uk).

Take the survey now --> here

 

Other links you may like:

Cambridge Centre for Alternative Finance Publishes First Global Report on Alternative Finance: Over $300 Billion in Volume in 2018

Cambridge: Global Regulator Survey Results – Regulation of Alternative Finance is Key to Make Sector Safe to Scale for the Masses

 


NCFA Jan 2018 resize - Cambridge launches the Global Alternative Finance Industry Benchmark & Covid-19 Rapid Assessment Survey in Partnership with World Bank Group and World Economic Forum 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

Latest news - Cambridge launches the Global Alternative Finance Industry Benchmark & Covid-19 Rapid Assessment Survey in Partnership with World Bank Group and World Economic ForumFF Logo 400 v3 - Cambridge launches the Global Alternative Finance Industry Benchmark & Covid-19 Rapid Assessment Survey in Partnership with World Bank Group and World Economic Forumcommunity social impact - Cambridge launches the Global Alternative Finance Industry Benchmark & Covid-19 Rapid Assessment Survey in Partnership with World Bank Group and World Economic Forum

JOIN US THUR, AUGUST 20 ARTIFICIAL INTELLIGENCE IN FINTECH!


GET TICKETS NOW

More Info



Week 7 Artificial Intelligene in Fintech resize - Cambridge launches the Global Alternative Finance Industry Benchmark & Covid-19 Rapid Assessment Survey in Partnership with World Bank Group and World Economic Forum



NCFA COVID 19 letter to government to support Fintechs and SMEs - Cambridge launches the Global Alternative Finance Industry Benchmark & Covid-19 Rapid Assessment Survey in Partnership with World Bank Group and World Economic Forum

NCFA Newsletter subscribe600 - Cambridge launches the Global Alternative Finance Industry Benchmark & Covid-19 Rapid Assessment Survey in Partnership with World Bank Group and World Economic Forum

 

share save 171 16 - Cambridge launches the Global Alternative Finance Industry Benchmark & Covid-19 Rapid Assessment Survey in Partnership with World Bank Group and World Economic Forum

Liquid Avatar Integrates with Disrupted Logic Interactive to Reach 60 Million+ Gamers

share save 171 16 - Cambridge launches the Global Alternative Finance Industry Benchmark & Covid-19 Rapid Assessment Survey in Partnership with World Bank Group and World Economic Forum

KABN Sytems North America | Ben Kessler | June 16, 2020

KABN and Disruptive Logic Interactive - Cambridge launches the Global Alternative Finance Industry Benchmark & Covid-19 Rapid Assessment Survey in Partnership with World Bank Group and World Economic Forum

Toronto, Ontario and Vancouver, British Columbia--(Newsfile Corp. - June 16, 2020) -  KABN Systems NA Holdings Corp. (CSE:KABN) (formerly Torino Power Solutions Inc.) (the "Company" or "KABN" or "KABN North America"), a Canadian Fintech company that specializes in continuous online identity verification, management and monetization, is pleased to announce that it has entered an initial agreement to integrate its Liquid Avatar platform (www.liquidavatar.com) with Disrupted Logic Interactive's ("DLI") ctalyst® platform to enhance the experience of online and eSports gamers.

Founded in 2012 in Vancouver, BC, by a team of seasoned video, gaming, advertising and technology leaders, DLI's ctalyst® platform currently works with over 130 game producers and has an additional 150 developers awaiting invitation to join the network. ctalyst® is a one-stop, self-contained, and full-service platform similar in concept to Google's AdWords, AdSense, and Analytics, but designed just for video games and e-sports. With the 130 game producers, the peak reach has been 60 to 70 million players and manages over 150 unique data points and analytics on opt-in participants. It is anticipated that when the additional 150 game developers are invited into the program, the reach could extend to over 500 million gamers worldwide.

See:  NCFA Announces Updated Virtual Interactive Programme for FFCON20 DIGITAL, the 6th annual Fintech and Financing Conference

KABN North America's platform provides, at no cost to consumers, the ability to create a digital identity with the Liquid Avatar platform, verify their identity through KABN ID and create value for the use of their identity through KABN North America's cashback, engagement and loyalty program KABN KASH, as well as the KABN Visa card.

KABN North America generates revenue by providing users with high value services and delivering permission-based offers that fit their aggregated public data profiles. KABN never rents, sells or provides data to outside parties without permission, and complies with jurisdictional privacy rules and regulations.

KABN North America is working with DLI and its game developers to promote Liquid Avatar to US and Canadian gamers through the online game registration and certain game incentives.

"The ability to increase player reach outside of the game and the ability to empower users to control the use of their digital identity is a fundamental reason why we've partnered with Liquid Avatar," said Tom Raycove, CEO of DLI. "KABN's ecosystem presents a tremendous opportunity for DLI and our game developers to create revenue while building increased value for players."

Liquid Avatar - Delivering Reach, Value and Revenue

Game Developers - Liquid Avatar provides developers with the ability to extend their reach and revenue generation with players by having gamers activate Liquid Avatars. Any revenues generated by those gamers in the KABN Network will be shared by KABN, DLI and game developers.

Advertisers - For in-game advertisers, DLI manages over 150 unique data points and, together with Liquid Avatar, can assess if a gamer has more than 1 account, allowing unique advertising to be delivered not just based on individual game play of an individual person and not just the number of accounts, increasing both value for the advertiser and potentially increasing overall revenue in the ecosystem.

Gamers - By signing up in-game for a Liquid Avatar account, the user will have the ability to earn special rewards and value from the game developer. They will also have the ability to potentially create and manage in-game avatars with Liquid Avatar and extend their game personas to the real world. Working with DLI, the data points collected can support both the opportunities in Liquid Avatar and products like KABN KASH to create more personalized offers from merchants and increase the potential revenue generated by KABN North America.

See:  A new denim collection gives jeans a digital identity

DLI / catalyst® - The agreement with KABN North America provides opportunities for DLI to increase their ongoing reach with gamers, create value for the ecosystems and generate revenues beyond in-game advertising. Liquid Avatar and KABN will share revenues generated inside the KABN ecosystem for users generated from DLI's referrals.

KABN North America - By working with DLI and other organizations that have large networks of non-verified users, Liquid Avatar can potentially create significant revenue and value for its partners and the KABN Network. This process both increases reach for Liquid Avatar and can potentially reduce customer acquisition costs significantly.

KABN North America Product Suite

KABN North America has 4 primary products that enable users to verify, manage and monetize their digital identity:

  • KABN ID: a reusable, Always On, compliant, biometrically based, identity verification and validation platform that forms the engine of the KABN Network.
  • LIQUID AVATAR: a digital image-based "wallet and keyring" platform that allows users to manage their digital identity.
  • KABN Card: an approved prepaid Visa card that includes a mobile banking wallet that supports both digital and traditional currencies.
  • KABN KASH: a robust loyalty and engagement platform with cashback and card-linked programs.

"This agreement with DLI creates an opportunity to reach a significantly large, low acquisition cost and highly scalable market to increase the reach of Liquid Avatar," said Benjamin Kessler, CEO. "KABN's suite of services will provide an ecosystem to empower these users to manage and control their digital identity and to benefit from unique, permission-based offers that will create revenues for KABN, DLI and game developers."

DLI is currently exploring its own private funding program and KABN North America has expressed interest in participating as a lead order, subject to completion of a definitive agreement, review of the offering, and receipt of all necessary approvals.

Over the coming weeks, KABN will begin its rollout of products and programs, initially on an invitation-only basis to its customers, social media, gaming and its network partners.

About DLI - www.disruptedlogic.com

Founded in 2012 in Vancouver, BC, by a team of industry professionals from gaming, advertising, technology and the motion picture industry, Disrupted Logic Interactive currently has 7 employees. Disrupted Logic has developed the ctalyst® technology which is live and in market.

ctalyst® is a one-stop, self-contained, and full-service platform similar in concept to Google's AdWords, AdSense, and Analytics, but designed just for video games and e-sports. ctalyst® ads are a natural, native, and genuine playable and enjoyable part of the video gaming experience. The ctalyst® engine manages over 150 user datapoints and analytics on an opt-in basis.

The platform has 130 participating game producers and an additional 150 developers awaiting invitations with an audience peak reach of approximately 60 to 70 million people. Disrupted Logic expects that when the additional 150 game developers are invited into the program, the platform's reach to the gaming industry could extend to over 500 million users worldwide.

For more information, please visit: www.disruptedlogic.com

About KABN - www.kabnnaholdco.com

KABN Systems NA Holdings Corp. through its wholly owned subsidiary KABN Systems North America Inc. focuses on the verification, management and monetization of digital identity, empowering users to control and benefit from its use of their online identity.

 

View:  source release


NCFA Jan 2018 resize - Cambridge launches the Global Alternative Finance Industry Benchmark & Covid-19 Rapid Assessment Survey in Partnership with World Bank Group and World Economic Forum 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

Latest news - Cambridge launches the Global Alternative Finance Industry Benchmark & Covid-19 Rapid Assessment Survey in Partnership with World Bank Group and World Economic ForumFF Logo 400 v3 - Cambridge launches the Global Alternative Finance Industry Benchmark & Covid-19 Rapid Assessment Survey in Partnership with World Bank Group and World Economic Forumcommunity social impact - Cambridge launches the Global Alternative Finance Industry Benchmark & Covid-19 Rapid Assessment Survey in Partnership with World Bank Group and World Economic Forum

JOIN US THUR, AUGUST 20 ARTIFICIAL INTELLIGENCE IN FINTECH!


GET TICKETS NOW

More Info



Week 7 Artificial Intelligene in Fintech resize - Cambridge launches the Global Alternative Finance Industry Benchmark & Covid-19 Rapid Assessment Survey in Partnership with World Bank Group and World Economic Forum



NCFA COVID 19 letter to government to support Fintechs and SMEs - Cambridge launches the Global Alternative Finance Industry Benchmark & Covid-19 Rapid Assessment Survey in Partnership with World Bank Group and World Economic Forum

NCFA Newsletter subscribe600 - Cambridge launches the Global Alternative Finance Industry Benchmark & Covid-19 Rapid Assessment Survey in Partnership with World Bank Group and World Economic Forum

 

share save 171 16 - Cambridge launches the Global Alternative Finance Industry Benchmark & Covid-19 Rapid Assessment Survey in Partnership with World Bank Group and World Economic Forum

Behind tech layoffs lay systemic cash flow negative companies

share save 171 16 - Cambridge launches the Global Alternative Finance Industry Benchmark & Covid-19 Rapid Assessment Survey in Partnership with World Bank Group and World Economic Forum

Medium | Gonzalo Espinoza Graham | May 31, 2020

public companies and covid layoffs - Cambridge launches the Global Alternative Finance Industry Benchmark & Covid-19 Rapid Assessment Survey in Partnership with World Bank Group and World Economic Forum

Since the pandemic started, there’s been approximately 61,260 tech layoffs [1]. Close to 30% of the layoffs came from public tech companies, 85% of those companies are unprofitable.

No deep insights here, just the simple fact that the once growth hyper focused startups grew to be publicly traded companies without ever sorting their unit economics, and now their mediocracy has real consequences on real people.

See:  How Regulation Crowdfunding Stood up to the First Weeks of Coronavirus – Almost Opposite of the Public Markets

This includes household names such as Uber, Lyft, Casper, and Eventbrite which we’ve all used, and begs the question: why did we allow so many unprofitable companies IPO? When did losing money become acceptable and the new normal for publicly traded companies?

Here’s to a new generation of entrepreneurs who prioritize building sustainable businesses.

Continue to the full article --> here

 


NCFA Jan 2018 resize - Cambridge launches the Global Alternative Finance Industry Benchmark & Covid-19 Rapid Assessment Survey in Partnership with World Bank Group and World Economic Forum 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

Latest news - Cambridge launches the Global Alternative Finance Industry Benchmark & Covid-19 Rapid Assessment Survey in Partnership with World Bank Group and World Economic ForumFF Logo 400 v3 - Cambridge launches the Global Alternative Finance Industry Benchmark & Covid-19 Rapid Assessment Survey in Partnership with World Bank Group and World Economic Forumcommunity social impact - Cambridge launches the Global Alternative Finance Industry Benchmark & Covid-19 Rapid Assessment Survey in Partnership with World Bank Group and World Economic Forum

JOIN US THUR, AUGUST 20 ARTIFICIAL INTELLIGENCE IN FINTECH!


GET TICKETS NOW

More Info



Week 7 Artificial Intelligene in Fintech resize - Cambridge launches the Global Alternative Finance Industry Benchmark & Covid-19 Rapid Assessment Survey in Partnership with World Bank Group and World Economic Forum



NCFA COVID 19 letter to government to support Fintechs and SMEs - Cambridge launches the Global Alternative Finance Industry Benchmark & Covid-19 Rapid Assessment Survey in Partnership with World Bank Group and World Economic Forum

NCFA Newsletter subscribe600 - Cambridge launches the Global Alternative Finance Industry Benchmark & Covid-19 Rapid Assessment Survey in Partnership with World Bank Group and World Economic Forum

 

share save 171 16 - Cambridge launches the Global Alternative Finance Industry Benchmark & Covid-19 Rapid Assessment Survey in Partnership with World Bank Group and World Economic Forum

What the last 2 months of fundraising tells us about the future

share save 171 16 - Cambridge launches the Global Alternative Finance Industry Benchmark & Covid-19 Rapid Assessment Survey in Partnership with World Bank Group and World Economic Forum

TechCrunch | Russ Heddleston | Jun 3, 2020

the future crystal ball - Cambridge launches the Global Alternative Finance Industry Benchmark & Covid-19 Rapid Assessment Survey in Partnership with World Bank Group and World Economic ForumFor many startups looking to secure funds, the fundraising marketplace has been a bit of a roller coaster. While there are signs that should make founders feel very optimistic (more on that here), it’s important to know how we got to this point.

We’ve used data from the 2020 DocSend Startup Index to track three major metrics to show us real-time trends in the fundraising marketplace. Using aggregate and anonymous data pulled from thousands of pitch deck interactions across the DocSend platform, we’re able to track the supply and demand in the marketplace, as well as the quality of pitch deck interactions.

The main two metrics we’ll be looking at are Pitch Deck Interest and Founder Links Created. Pitch Deck Interest is measured by the average number of pitch deck interactions for each founder happening on our platform per week, and is a great proxy for demand. Founder Links Created is how many unique links a founder is creating to their deck each week; because each person you send a document to in DocSend gets a unique link, we can use this as a proxy for demand by looking at how many investors a founder is sending their deck to.

See:  TFI and InvestHK Event (Jun 11): Why Hong Kong? Why now? Fundraising opportunities and new trends in a post-COVID-19 world

When looking at what’s happened so far this year, we can potentially see where the marketplace is headed.

January and February were off to a roaring start

We all know 2018 was a great year for startup fundraising. And that can be seen in how many pitch decks were being consumed per founder across our platform. In fact, Q1 of 2018 posted nine of the highest weekly totals in all of 2018 and 2019. Investors’ demand was high and there was a lot of capital to deploy. But while 2020 didn’t come out of the gate as strong, demand started gaining momentum by February. In fact, the week of February 10th actually surpassed the demand in the same week of 2018 and was a whopping 19% ahead of 2019.

But the fundraising market isn’t a one-way street, there needs to be a steady supply of pitch decks being sent by founders to meet investor demand. During Q1 of 2018, founders were conservative in sending out their pitch decks (it might not be a coincidence that this is when we started to see a lot of “mega rounds,” as there was far less supply than there was demand). However, founders started courting far more investors in 2019, generating more interest and competition for their companies. We saw a huge jump in links created in the first two months of 2020 and it peaked at a 41% increase year-over-year during the week of January 27. According to the data, 2020 was on pace to match the fundraising activity of 2018.

When things ground to a halt

While it’s clear the trend was moving toward another blockbuster year for fundraising, we’ll never know what was going to happen. We saw the first drop in investor interest in the week of February 24th, just as people were becoming more aware of the very real threat of COVID-19.

See:  Brace for Impact: VC Funding of Fintechs Has Terrible Q1

In fact, founder activity actually started to decline the week of February 17th. While the first two weeks of March saw the beginnings of the market shift (the first two weeks of March dropped nearly 12% as compared to the first two weeks of February), the week of March 16th is when we saw the major drop.

The week of March 16th saw pitch deck interest down more than 20% and links created down more than 21% from their 2020 height in February. This is also the week many places adopted shelter-in-place or other social-distancing orders. It was also when the economic impact began to affect many companies, with VCs spending more time with their portfolio companies as the COVID-19 crisis intensified. In fact, the top four worst days of 2020 for Pitch Deck Interest (other than in the first week of January) were: March 19th, 6th, 12th and 20th.

What April can tell us about finding a new normal

After the initial decline in March, founders and VCs both bounced back fairly quickly. In fact, the next week VC interest increased 10% while the number of Founder Links Created increased by 12%. However, for the following few weeks the number of links created by founders either stayed flat or dropped. But that isn’t the case for VCs. Demand for pitch decks rose steadily all the way through the week of April 20th, which was 25% up year-over-year. In fact, seven of the top 10 best days for Pitch Deck Interest in 2020 were in the month of April.

There could be many reasons founders aren’t sending their decks out with the fervor they were in January and February. Many are adjusting their business models and plans to account for the new environment, some are concerned they may be asked to change their valuation or ask and still others are working with their current investors rather than seeking more outside capital.

See:  The Impact of Coronavirus on Funding Innovation

What we do know is that investor interest was on par earlier this year to outpace 2018, and investors only took a brief pause to adjust in March when the pandemic hit. That means there is just as much capital ready to deploy, and just as much investor interest as there was earlier this year. However, founders are still adjusting to the new market conditions. This means the fundraising marketplace is starting to look very much like it did in early 2018, with investor interest high, but founders supply not quite meeting the demand. This is good news for founders, as some of their fears of less favorable terms may not actually be a reality.

Continue to the full article --> here

 


NCFA Jan 2018 resize - Cambridge launches the Global Alternative Finance Industry Benchmark & Covid-19 Rapid Assessment Survey in Partnership with World Bank Group and World Economic Forum 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

Latest news - Cambridge launches the Global Alternative Finance Industry Benchmark & Covid-19 Rapid Assessment Survey in Partnership with World Bank Group and World Economic ForumFF Logo 400 v3 - Cambridge launches the Global Alternative Finance Industry Benchmark & Covid-19 Rapid Assessment Survey in Partnership with World Bank Group and World Economic Forumcommunity social impact - Cambridge launches the Global Alternative Finance Industry Benchmark & Covid-19 Rapid Assessment Survey in Partnership with World Bank Group and World Economic Forum

JOIN US THUR, AUGUST 20 ARTIFICIAL INTELLIGENCE IN FINTECH!


GET TICKETS NOW

More Info



Week 7 Artificial Intelligene in Fintech resize - Cambridge launches the Global Alternative Finance Industry Benchmark & Covid-19 Rapid Assessment Survey in Partnership with World Bank Group and World Economic Forum



NCFA COVID 19 letter to government to support Fintechs and SMEs - Cambridge launches the Global Alternative Finance Industry Benchmark & Covid-19 Rapid Assessment Survey in Partnership with World Bank Group and World Economic Forum

NCFA Newsletter subscribe600 - Cambridge launches the Global Alternative Finance Industry Benchmark & Covid-19 Rapid Assessment Survey in Partnership with World Bank Group and World Economic Forum

 

share save 171 16 - Cambridge launches the Global Alternative Finance Industry Benchmark & Covid-19 Rapid Assessment Survey in Partnership with World Bank Group and World Economic Forum

NCFA Response to CSA on NI 45-110 Harmonized Securities Crowdfunding Rules

share save 171 16 - Cambridge launches the Global Alternative Finance Industry Benchmark & Covid-19 Rapid Assessment Survey in Partnership with World Bank Group and World Economic Forum

NCFA Canada | Craig Asano | May 27, 2020

NCFA Response to CSA Request for Commments on Proposed Crowdfunding Harmonization Rules NI 45 110 - Cambridge launches the Global Alternative Finance Industry Benchmark & Covid-19 Rapid Assessment Survey in Partnership with World Bank Group and World Economic Forum

NCFA SUBMISSION TO CSA ON PROPOSED HARMONIZED RULES FOR START-UP SECURITIES CROWDFUNDING (NI 45-110)

The Canadian Securities Administrators (CSA) are seeking comments on proposed harmonized rules for start-up securities crowdfunding by 27 May 2020.

The National Crowdfunding and Fintech Association of Canada (NCFA) welcomes this initiative. The following addresses the specifics of the proposed rules, but please see our previous submissions on crowdfunding in Canada on our website in the advocacy section for more details – https://ncfacanada.org/advocacy/.

 

1. Harmonization

NCFA has argued for many years that CSA crowdfunding rules are unduly constraining, and this enhanced harmonization will enable a greater use of crowdfunding across Canada, help to fill a funding gap, and allow more retail investors to invest in businesses whose purpose they support.

 

2. Impact of the pandemic on fundraising

Today, early stage Ventures are the most likely not to get funded as they lack established relationships with banks (including BDC) and they have been amongst the hardest hit by the pandemic.  Many VC funds are moving towards growth equity (later stage) investing and foreign investors mainly invest at later stages.

 

3. Funding cap

While the maximum total amount that could be raised by a business under the crowdfunding prospectus exemption per year would increase from $500,000 to $1 million, we continue to support a much higher amount of $5 million (and that a broader range of companies be able to participate). In the US, where Reg CF has shown reasonable success, proposed SEC changes to Reg CF include increasing the maximum raise from $1 million US to $5 million. In the result, “the industry is poised to take off”. See – https://crowdfundcapitaladvisors.com/downloads/regulation-crowdfunding-4-years-in-review/ and https://www.sec.gov/news/press-release/2020-55.

We note the 60% success rate in 2019 mentioned in the above US report, and the failure of the researchers to find any evidence of fraud. Unfortunately, so far as we are aware, similar data is not collected in Canada.

We also note that the US is joining other jurisdictions to enable a higher raise, for example:

 

4. Investor cap

While we welcome the proposal to increase the maximum investment an investor can make in a distribution to $2,500 (from $1,500), with a higher limit of $5,000 if the purchaser obtains advice from a registered dealer, again we think the limit should be higher.

The investor cap should be raised to at least $5,000 per distribution, or $10,000 a positive suitability determination by a registered dealer.   The commission may also consider implementing a maximum investment value per calendar year across all distributions such as $50,000 maximum per calendar year for an eligible investor.

What little data we have in Canada shows that the success rate of crowdfunded start-ups is relatively high (compared to all start-ups) and that investors, if educated about crowdfunding, welcome the opportunity to invest directly in ideas that they can connect with.  In other jurisdictions, crowdfunding is an important source of start-up capital.

We need to make start-up capital easier to access in Canada and to make the system more competitive with other jurisdictions:

  • UK does not have an investor cap
  • In Australia, retail investors can invest up to 10,000 AUD per year
  • In Germany, there is a limit of 10,000 EUR per investment for private individuals, but they cannot invest more than double their monthly net income
  • 90% of the US States which have adopted or are considering adopting an intrastate crowdfunding exemption have chosen either $5,000 or $10,000 per single investment, unless the investor is accredited.

Eligible investors should be able to invest up to $100,000 with a positive suitability determination by a registered dealer

Accredited investors should be able to invest without caps (as they may already invest an unlimited amount under the accredited investor exemption).

The commission should consider expanding the accredited investor exemption definition to allow a category of ‘qualified accredited investors’ that any individual can qualify if they pass a formal test, such as the Canadian Securities Course (CSC) or equivalently demonstrate the knowledge and ability to accept risks involved.  This would encourage more qualified Canadians to participate in private capital markets and be inline with similar initiatives in the U.S..

 

5. Working capital certification

A funding portal relying on the start-up crowdfunding registration exemption must deliver to the regulator in each jurisdiction a completed Form 45 110F5 Annual Working Capital Certification within 10 days of each calendar year-end. The portal must certify that it has sufficient working capital to continue its operations for at least the next 12 months. If the funding portal becomes insolvent or discontinues operations, it must promptly notify the securities regulatory authority or the regulator, and any purchasers for which it holds assets, of the process the portal will use to return the assets to these purchasers.

While a portal must be and remain solvent to operate, we believe that maintaining a 12 month capital requirement for crowdfunding dealers and funding portal registrants would be challenging especially given the pressure of small margins and the impact of COVID-19 now and for the foreseeable future.

 

6. Statutory liability

Under the Instrument, issuers, and in some jurisdictions, the directors and executives signing the offering document will be subject to statutory liability if the offering document provided to the investor contains a misrepresentation.

Due to the more limited resources of smaller issuers, this provision should only apply where the aggregate proceeds exceed $1.5 Million.

 

7. Eligible securities

These are: a common share; a non-convertible preference share; a security convertible into a common or a preference share; a non-convertible debt security linked to a fixed or floating interest rate; and a unit of a limited partnership.

  • We would like to suggest that convertible preference shares be considered eligible securities within this instrument.
  • Units of a trust should also be included as eligible securities.

 

8. Sunset clause

The absence of an expiry date in the instrument will enhance certainty for market participants.

 

9. Repeal of MI 45-108

MI 45-108 should be repealed.

 

10. Reports of Exempt Distribution

The regulator should consider fee reduction for filing reports of exempt distributions - these can add up to around $1,500 per raise which is a significant fee particularly for a smaller issuer. One potential way to manage this would be to allow registered dealers and funding portals to file reports of exempt distributions in batches (ie. once a quarter) and only pay a single fee per batch of transactions.

 

11. Peer-to-Peer Lending

The securities regime should contemplate a separate set of requirements for non-convertible loans made between a borrower and lenders. In other jurisdictions, such a transaction comes with a much lighter regulatory burden which is important for it to be feasible for a peer-to-peer lending market to exist.

Specifically, no offering document should be required to be prepared by a borrower where the transaction taking place is a simple loan made between lenders and a borrower - rather the loans should be made under a standard form loan agreement facilitated by a platform. In order to minimize burden on the borrower, the platform should be required to undertake certain due diligence on the borrower and determine an interest rate, loan amount and repayment structure - the borrower would thereby only be required to execute a loan agreement in order to transact in this capacity.

The current proposed regime would result in adverse selection bias as only borrowers that are less creditworthy would be likely to go to the lengths required under the crowdfunding regime as there are currently other options in the market to raise capital that are less burdensome for the borrower such as private lenders.

 

12. General comments

NCFA continues to ask for government support to ensure the Canadian fintech sector is not being held back and remains competitive with international comparators such as in the UK and US including:

  • Improved data collection-analysis and reporting transparency. The lack of basic data (mirroring what is happening with respect to Coronavirus) is a recurring theme that requires a solution.  NCFA is willing to collaborate with any government to help develop and provide a solution;
  • Allow advertising and general solicitation;
  • Consider bad actor check on management and beneficial shareholders (shared database);
  • Provide (funding for) ongoing education;
  • Take advantage of proven tax and other incentives;
  • Be proactive and champion innovation;
  • And maintain a public list of only active operating funding portals and registrants with a regular check of their operating status combined with a definition of ‘active’ portals (ie., >1 capital raise in the proceeding 12 months).

 

See select NCFA submissions:

NCFA meeting with OSC - briefing notes on Aug 24, 2017

NCFA submission to Ontario Minister of Finance: Urgent Need for Regulatory Change (report | summary) on Oct 18 2017

NCFA meeting with BCSC - briefing notes on Aug 15, 2017

NCFA Response to ASC Request for comments 45-108 on Sep 9, 2018

 

Download a PDF Copy of the Submission --> here


NCFA Jan 2018 resize - Cambridge launches the Global Alternative Finance Industry Benchmark & Covid-19 Rapid Assessment Survey in Partnership with World Bank Group and World Economic Forum 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

Latest news - Cambridge launches the Global Alternative Finance Industry Benchmark & Covid-19 Rapid Assessment Survey in Partnership with World Bank Group and World Economic ForumFF Logo 400 v3 - Cambridge launches the Global Alternative Finance Industry Benchmark & Covid-19 Rapid Assessment Survey in Partnership with World Bank Group and World Economic Forumcommunity social impact - Cambridge launches the Global Alternative Finance Industry Benchmark & Covid-19 Rapid Assessment Survey in Partnership with World Bank Group and World Economic Forum

JOIN US THUR, AUGUST 20 ARTIFICIAL INTELLIGENCE IN FINTECH!


GET TICKETS NOW

More Info



Week 7 Artificial Intelligene in Fintech resize - Cambridge launches the Global Alternative Finance Industry Benchmark & Covid-19 Rapid Assessment Survey in Partnership with World Bank Group and World Economic Forum



NCFA COVID 19 letter to government to support Fintechs and SMEs - Cambridge launches the Global Alternative Finance Industry Benchmark & Covid-19 Rapid Assessment Survey in Partnership with World Bank Group and World Economic Forum

NCFA Newsletter subscribe600 - Cambridge launches the Global Alternative Finance Industry Benchmark & Covid-19 Rapid Assessment Survey in Partnership with World Bank Group and World Economic Forum

 

share save 171 16 - Cambridge launches the Global Alternative Finance Industry Benchmark & Covid-19 Rapid Assessment Survey in Partnership with World Bank Group and World Economic Forum

WealthBar rebrands as CI Direct Investing

share save 171 16 - Cambridge launches the Global Alternative Finance Industry Benchmark & Covid-19 Rapid Assessment Survey in Partnership with World Bank Group and World Economic Forum

Wealth Professionals | David Kitai | May 21, 2020

Wealthbar rebrand - Cambridge launches the Global Alternative Finance Industry Benchmark & Covid-19 Rapid Assessment Survey in Partnership with World Bank Group and World Economic ForumCEO tells WP why the firm is rebranding and what new opportunities lie in the company's future

Robo-advisor WealthBar is rebranding as CI Direct Investing with parent company CI financial increasing their ownership stake from 75 per cent to 100 per cent.

Tea Nicola, founder and CEO of WealthBar, says that in terms of day to day operations nothing will change for their advisors and their clients. While she admits a bit of melancholy saying goodbye to the brand she built, she accepts that this is the logical next stage for her company and looks forward to the new challenges and opportunities she and her team will be taking on as CI Direct Investing. WealthBar will eventually be combined with Virtual Brokers, CI’s discount broker.

See:  Why Partnerships Are the Future for Fintech

“We're currently not making any major changes aside from the rebrand itself,” Nicola says. “We're simply fully focused on supporting our customers, growing with the current demand we're seeing and launching this rebrand.”

Nicola explained that the rebrand fits in a wider strategy on the part of CI financial, unifying their group of companies under a shared banner. She expects that as a unit under the CI name, each of those companies will be better able to benefit one another. As well, Nicola says she doesn’t think the rebrand will derail the recent momentum WealthBar had picked up during March and April of this year. She’s confident that operational continuity, portfolio results, and her team’s hard work will keep the new client numbers growing.

“WealthBar and Virtual Brokers have posted strong growth and these changes will set the stage for future success,” CI CEO Kurt MacAlpine said in a press release. “We believe that professional advice is as critical as ever and our online platforms are important complements to our traditional advisory business.”

Nicola says that this may be the first such full acquisition and rebrand of a robo-advisor by an “incumbent” playing in the Canadian financial space.

She differentiated this from Purpose investment’s recent acquisition of Wealthsimple for Advisors, noting that Purpose is a younger player than CI and this is retail facing, rather than B2B as the acquisition of Wealthsimpe for Advisors was.

See:  Checkout Other Canadian Wealthtech Firms on FintechCanada.io

While Nicola accepts the name CI Direct Investing strikes a more institutional tone than WealthBar, but says that the tone and position of a brand is more defined by the work done underneath it than simply a name. Nicola says she and her team are committed to continue working as they had, proving to clients new and old that the same disruptive energy that had won them success as WealthBar will be maintained under the CI Direct Investing banner. She maintains that for her clients and the advisors she’s partnered with, the difference between WealthBar and CI Direct Investing will be little more than “different colours.”

“From a material perspective, nothing is going to change,” Nicola says. “It’s going to be the same old advisor platform, the same old client dashboard. It might be called different, look different, but you're going to have the same portfolio, the same advisors the same level of service offering.”

Continue to the full article --> here

 


NCFA Jan 2018 resize - Cambridge launches the Global Alternative Finance Industry Benchmark & Covid-19 Rapid Assessment Survey in Partnership with World Bank Group and World Economic Forum 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

Latest news - Cambridge launches the Global Alternative Finance Industry Benchmark & Covid-19 Rapid Assessment Survey in Partnership with World Bank Group and World Economic ForumFF Logo 400 v3 - Cambridge launches the Global Alternative Finance Industry Benchmark & Covid-19 Rapid Assessment Survey in Partnership with World Bank Group and World Economic Forumcommunity social impact - Cambridge launches the Global Alternative Finance Industry Benchmark & Covid-19 Rapid Assessment Survey in Partnership with World Bank Group and World Economic Forum

JOIN US THUR, AUGUST 20 ARTIFICIAL INTELLIGENCE IN FINTECH!


GET TICKETS NOW

More Info



Week 7 Artificial Intelligene in Fintech resize - Cambridge launches the Global Alternative Finance Industry Benchmark & Covid-19 Rapid Assessment Survey in Partnership with World Bank Group and World Economic Forum



NCFA COVID 19 letter to government to support Fintechs and SMEs - Cambridge launches the Global Alternative Finance Industry Benchmark & Covid-19 Rapid Assessment Survey in Partnership with World Bank Group and World Economic Forum

NCFA Newsletter subscribe600 - Cambridge launches the Global Alternative Finance Industry Benchmark & Covid-19 Rapid Assessment Survey in Partnership with World Bank Group and World Economic Forum

 

share save 171 16 - Cambridge launches the Global Alternative Finance Industry Benchmark & Covid-19 Rapid Assessment Survey in Partnership with World Bank Group and World Economic Forum

20-year-old Dubliner lands €14.6m funding round from top Silicon Valley firms

share save 171 16 - Cambridge launches the Global Alternative Finance Industry Benchmark & Covid-19 Rapid Assessment Survey in Partnership with World Bank Group and World Economic Forum

Independent.ie | Adrian Weckler | May 21, 2020

Shane Curran Evervault - Cambridge launches the Global Alternative Finance Industry Benchmark & Covid-19 Rapid Assessment Survey in Partnership with World Bank Group and World Economic ForumA 20-year-old former BT Young Scientist winner has landed $16m (€14.6m) in new funding from some of Silicon Valley’s most prestigious US venture capital firms

The famous former data security chief for Yahoo and Facebook, Alex Stamos, has come on as a new investor, as have Eventbrite CEO Kevin Hartz and (French firm) Datadog’s CEO Olivier Pomel.  The heavy-hitting Silicon Valley firms backing the venture are led by Index Ventures with participation from Sequoia Capital and Kleiner Perkins and assistance from Dublin-based venture firm Frontline.

“We’re aiming to distill what GDPR did in 99 Articles down to a line of code,” said Mr Curran.

Seven years ago, Sequioa invested in the payments firm created by another former Young Scientist winner, Patrick Collison and his brother John. Stripe has gone on to become one of the world’s most valuable private companies, valued at $35bn (€31.7bn).

See:   Cyber security world first as unique guide is launched

Evervault hosts a network of hardware-secured data processing ‘enclaves’ which allows developers to deploy their applications in privacy ’cages’.  These cages allow information to be processed securely with strictly controlled access but without changing the way that developers build their software. Developers integrate with the Evervault API through their publicly available developer SDKs for all major architectures and frameworks.

“This is conceptually simple, but operationally complex. We’re building cages alongside specific companies which handle extremely sensitive data. Think location data, banking data, payments data, kids’ data, health data and more. At Evervault, we believe that data privacy isn’t a regulatory problem; it’s a technology problem.”

Continue to the full article --> here

 


NCFA Jan 2018 resize - Cambridge launches the Global Alternative Finance Industry Benchmark & Covid-19 Rapid Assessment Survey in Partnership with World Bank Group and World Economic Forum 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

Latest news - Cambridge launches the Global Alternative Finance Industry Benchmark & Covid-19 Rapid Assessment Survey in Partnership with World Bank Group and World Economic ForumFF Logo 400 v3 - Cambridge launches the Global Alternative Finance Industry Benchmark & Covid-19 Rapid Assessment Survey in Partnership with World Bank Group and World Economic Forumcommunity social impact - Cambridge launches the Global Alternative Finance Industry Benchmark & Covid-19 Rapid Assessment Survey in Partnership with World Bank Group and World Economic Forum

JOIN US THUR, AUGUST 20 ARTIFICIAL INTELLIGENCE IN FINTECH!


GET TICKETS NOW

More Info



Week 7 Artificial Intelligene in Fintech resize - Cambridge launches the Global Alternative Finance Industry Benchmark & Covid-19 Rapid Assessment Survey in Partnership with World Bank Group and World Economic Forum



NCFA COVID 19 letter to government to support Fintechs and SMEs - Cambridge launches the Global Alternative Finance Industry Benchmark & Covid-19 Rapid Assessment Survey in Partnership with World Bank Group and World Economic Forum

NCFA Newsletter subscribe600 - Cambridge launches the Global Alternative Finance Industry Benchmark & Covid-19 Rapid Assessment Survey in Partnership with World Bank Group and World Economic Forum

 

share save 171 16 - Cambridge launches the Global Alternative Finance Industry Benchmark & Covid-19 Rapid Assessment Survey in Partnership with World Bank Group and World Economic Forum