Rojin Nair, Advisor
June 1st, 2021
At Incyub8 Inc, Rojin is focusing on nurturing and guiding various national and international start-[...]
Category Archives: Fundraising and Investing
European Government Funds May Get Distributed by European Crowdfunding Platforms
Crowdfund Insider | | Jul 26, 2021
Recently, a report was published regarding the European Commission distributing European (ESIF) funds through European crowdfunding platforms. Obviously, if this occurs it will be a boon for both platforms and issuers.
The report was written by Karsten Wenzlaff, Ana Odorovic and Ronald Kleverlaan, along with consulting firm PwC. The authors are well known in the European Fintech and crowdfunding sectors.
Crowdfund Insider connected with the authors of the report. Wenzlaff told CI:
“The Structural and Investment Funds (ESIF) are the main instrument for the European Union to create long-term growth and cohesion and achieve the policy objectives – it is a huge budget which has increased again for the next budget period 2021-2027. The way it works is that each country gets a certain amount and then the so-called Managing Authorities (MAs) are in charge of distributing the funds according to guidelines by the European Commission. These Managing Authorities are often Ministries for Infrastructure or Development Agency. The vast amount of funds is distributed through grants.”
Wenzlaff explained that the breakthrough of this report is because, for the first time, the European Commission has created templates for the collaboration between the MAs and the crowdfunding platforms. But it has much more relevance beyond that because other public authorities on the regional and the national level can use these templates to collaborate with crowdfunding platforms.
See: GOOD NEWS: Canadian securities regulators adopt new nationally harmonized start-up crowdfunding rules
Wenzlaff said they also consider financial instruments, including equity investments and loans. Since usually grants are given to companies, this is also a huge step, because the introduction of financial instruments in public support means that the private investors can be paired with public money, the public authorities can support the private investor directly through credit risk guarantees or indirectly through co-investing.
The report provides an overview of the current status of the crowdfunding industry in Europe and the potential to use crowdfunding platforms by public authorities to realize the ambitions of the Cohesion Policy and provide funding to projects through crowdfunding platforms. A recent blog post by Kleverlaan outlines the relatively new European Crowdfunding Regulation (ECSP) stating that it should boost the development of crowdfunding across the EU. The ECSP allows platforms to operate across the EU based on a single set of rules, under the supervision of the financial regulator in each Member State. The new rules are expected to become actionable in November of 2021.
The European Cohesion Policy is described as one of the key instruments of the European Union with a substantial budget of €373 billion. The report touts the opportunity for ESIF Managing Authorities (MAs) to take advantage of crowdfunding platforms to channel resources towards segments of the market that may be underserved yet important to the European economy.
See: Recent Decision by UK Financial Ombudsman Service Challenges Investment Crowdfunding Model
Kleverlaan explained that the new ECSP regulation is a catalyst for enabling the European Commission and the Managing Authorities to develop models to work together with crowdfunding platforms, due to the harmonized legal framework.
“We have identified several case studies in which public authorities already implemented a procurement process to select a crowdfunding platform for a project of several years in which match funding instruments were implemented.”
When asked if a managing authority (the government) investing funds in a private firm is the best use of public money, Kleverlaan said they have identified four different blueprint models of how MAs can start working with crowdfunding platforms, each with advantages and disadvantages.
- Providing grants outside a crowdfunding campaign
- Investing through a lending-based crowdfunding platform
- Providing guarantees to investors
- Operating a crowdfunding platform
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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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Request for Comments by Oct 26, 2021: Canadian securities regulators propose streamlined capital raising option for Canadian-listed issuers
CSA | Jul 28, 2021
Vancouver – The Canadian Securities Administrators (CSA) is proposing to introduce a new prospectus exemption for issuers listed on a Canadian stock exchange that is expected to provide a more efficient way for them to raise capital.
“We’ve heard from market participants that the time and cost to prepare a short form prospectus is a barrier to capital raising for many smaller issuers,” said Louis Morisset, CSA Chair and President and CEO of the Autorité des marchés financiers. “The proposal would reduce regulatory burden, while maintaining robust investor protection.”
The proposed Listed Issuer Financing Exemption is expected to reduce costs for issuers raising smaller amounts of capital through the public markets. It would also allow smaller issuers greater access to retail investors and provide retail investors with a broader choice of investments.
The prospectus exemption would not be available to issuers that have been a reporting issuer for less than 12 months, nor to issuers that have not filed all continuous disclosure documents required under Canadian securities legislation. Eligible issuers would file a short offering document and the securities they issue would be freely tradeable. Under the proposed exemption, issuers could raise up to the greater of $5 million or 10 per cent of the issuer’s market capitalization, to a maximum of $10 million, annually.
See:
-
ASC and FCAA adopt new prospectus exemption to support small business capital raising
-
Raising Capital in a Pandemic World
- CSA Responds to Ontario Capital Markets Modernization Taskforce Report: NCFA – The present system is simply not good enough
The proposed exemption is in response to comments received from CSA Consultation Paper 51-404 Considerations for Reducing Regulatory Burden for Non-Investment Fund Reporting Issuers. It also reflects research on capital raising requirements in other countries and other stakeholder feedback about the prospectus system.
CSA Notice and Request for Comment Proposed Amendments to National Instrument 45-106 Prospectus Exemptions to introduce the Listed Issuer Financing Exemption is available on CSA members' websites. Comments should be submitted in writing by October 26, 2021.
The CSA, the council of the securities regulators of Canada’s provinces and territories, co-ordinates and harmonizes regulation for the Canadian capital markets.
Continue to the original release --> 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, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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What Is The Fastest Way To Raise Your Credit Score To Buy A House
Guest Post | Jul 28, 2021
Image: Pixabay
When buying a home, there are plenty of important factors a lender will consider when deciding whether or not to give you a mortgage. They will think about your income, your down payment, your other debts, and of course, your credit score. Your credit score is essentially a snapshot of your history as a borrower. The higher the score, the less risky you are to lend money to, in most cases.
While most with an average credit score or above average will be fine, those who are below might experience a bit more trouble. But thankfully, you aren’t doomed to have a bad credit score forever. Read on as we go over some of the best ways to quickly raise your score to buy a home.
Remove Negative Items on Your Credit Report
Perhaps the fastest and most affordable way to raise your credit score is to remove negative items from your credit report. These generally include collections and inquiries. While each one might only hurt your credit a bit, if they pile up, it can have a major impact.
Be sure to go through your report and ensure you do all you can to get these negatives removed. Also, mistakes are common on a credit report and could be the reason your credit is lower than it should be. You should be checking your report at least once a year if you feel your score is too low, to make sure there are no negative or incorrect items on your report.
Pay off Your Existing Debt
Image: Pixabay
Next, you need to make an effort to pay off any outstanding debt that you have. If you continue to miss payments and not pay off your debt, it will be hard for a lender to trust you with a mortgage, if you can’t even pay off your credit card bills. The more debt you have, especially debt that is unpaid, the less likely you are to get a good mortgage.
You may need to make some sacrifices, but it will be worth it to get a home you love. While the second you pay off your debt you won’t see your score skyrocket, it certainly can happen quickly.
Pay Your Bills on Time
Another way to show creditors you are worthy of a higher score is by paying your bills on time. Missing payments is one of the easiest ways for your credit score to take a dip, and will quickly show creditors you may not be the most reliable person. While a few days late here and there may not have a major impact in some cases, but if it becomes a common occurrence it certainly will.
See: 4 Smart Investments to Raise Your Home’s Value
Paying bills on time and in full shows you are prepared, on top of things, and always have enough to cover your bills. It shows you are a responsible borrower, and will always pay your debts according to the agreed-upon schedule. If you struggle to remember to make payments on time, consider making them automatically or leaving notes for yourself.
Keep Your Credit Utilization Low
Another important factor of your credit score is your utilization. This is how much of your available credit you are using in a given month. In general, you should aim to keep your credit utilization rate below 30%. So if your limit is $10,000 a month, make an effort to spend no more than $3,000 per month.
This shows that you can handle having a lot of credit without going crazy with spending. There are a few ways you can try to keep this utilization low. First and foremost, you can simply spend less on your credit card. Another option is to get an increase to your limit, in order to keep your utilization rate lower.
Trying to buy a home with a low credit score can be both difficult and expensive. But by using these tips, you should be able to get your credit back to a good place sooner rather than later.
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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Goldman Sachs Files Defi ETF Application
Bitcoin.com | Sergio Goschenko | Jul 27, 2021
Goldman Sachs, one of the biggest banking institutions in the world, has filed an application to offer an Exchange Traded Fund (ETF) linked to the performance of decentralized finance (defi) companies. The instrument, if approved, would help institutions and retail investors gain exposure to defi assets with the help of a regulated bank like Goldman Sachs.
Goldman Sachs Proposes Defi ETF
Goldman Sachs, one of leading commercial banks in the world, has introduced an application to the SEC to offer a defi-linked ETF. The defined ETF is called “Goldman Sachs Innovate Defi and Blockchain Equity ETF,” and it would seek to provide exposure to these technologies for regulated institutions. The performance of the fund would be linked to the Solactive Blockchain Technology Performance-Index.
See: 10 Highlights From Goldman Sachs’ June 2021 Digital Asset Thought Piece
This index follows a portfolio of tech industries that are invested in blockchain technologies. The index includes companies like Nokia, Alphabet, IBM, Microsoft, and Overstock. This would be the first ETF that aims to capitalize on the popularity that the defi sector has experienced this year. As Bitcoin.com News reported in June, Goldman Sachs has been courting the cryptocurrency sector recently, having partnered with Galaxy Digital to provide bitcoin futures products.
This filing is just another piece of evidence that indicates big banks are now interested in bringing their services and structures to the cryptocurrency market. While many of these disregarded cryptocurrency in the beginning, they are now focused on integrating investment products that are designed to bring traditional investors to the crypto sphere.
Goldman Sachs released a note on the state of the cryptocurrency market earlier this month when it stated that Ether could surpass Bitcoin as the most important crypto because the former has the “highest real use potential.”
This view of the crypto ecosystem could have fueled the ETF application made by the investment bank, focused on following defi and blockchain-based companies.
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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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FrontFundr secures another round of funding on its own equity crowdfunding platform
Betakit |
FrontFundr has secured $1.78 million CAD, through its own equity crowdfunding platform, as it looks to scale and bring more awareness to the crowdfunding model.
The funding came from 411 investors and brings FrontFundr’s total funding to date to $5.48 million, with the startup having raised all its capital through its own platform.
FrontFundr is using the financing to build on what it calls positive business momentum, as regulators have recently made it easier for startups to raise equity crowdfunding capital.
See: NCFA Response to the Modernizing Ontario’s Capital Markets Consultation Taskforce
Securities regulation in Canada, which equity crowdfunding falls under, is regulated on a provincial and territorial level, with no federal securities body. This has led to a patchwork of rules that change region to region.
Recently, the Canadian Securities Administrators (CSA), the council of all the securities regulators that coordinates and harmonizes regulation, has released new rules making it easier for companies across the country to raise equity crowdfunding capital.
“[There was a] patchwork of different rules, and they weren’t harmonized,” said Peter-Paul Van Hoeken, the founder and CEO of Silver Maple Ventures, the parent company of FrontFundr.
“That certainly has helped to create confusion in the market and definitely has been a challenge to growing the market,” he added. “Now, that’s out of the way.”
FrontFundr was founded in 2013, shortly before crowdfunding investment was legalized federally in Canada in 2015. The startup’s stated mission is to democratize the private sector investment model by offering companies an alternative to venture and private equity investing. To that end, Van Hoeken says FrontFundr has had to spend much of its time marketing the idea of equity crowdfunding to Canadian companies and investors, in addition to fighting for more harmonized regulations.
“We’re missionaries to spread the word around equity crowdfunding, in general,” said Van Hoeken. “We’re the leading platform in Canada, which is great, but that means that you also have to do most of the heavy lifting.”
See: FFCON21 On-Demand Video: European Crowdfunding Leaders - Lessons & Outlook from the First €1 Billion Raised
“Creating all that awareness has been a huge job for our company in the last five years,” the CEO said. “Not even awareness around FrontFundr, but more like the awareness that, ‘hey, this is an alternative way for you as a company to raise capital, and, as investors, you think you can only invest by Wealthsimple and public stocks, you can also invest in early stage companies from the very beginning.”
“We have seen the immense value and impact that harmonized crowdfunding rules have had in the US and the UK, and so we are really excited to work with Canadian companies and investors to help create the same sort of environment over here,” he said.
Continue to the full article --> 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, 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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Visa to Acquire Currencycloud
Visa | Jennifer Scardino | Jul 22, 2021
LONDON & SAN FRANCISCO--(BUSINESS WIRE)--Jul. 22, 2021-- Visa (NYSE: V) today announced it has signed a definitive agreement to acquire Currencycloud, a global platform that enables banks and fintechs to provide innovative foreign exchange solutions for cross-border payments. The acquisition builds on an existing strategic partnership between the two companies and values Currencycloud at £700 million, inclusive of cash and retention incentives. The financial consideration will be reduced by the outstanding equity of Currencycloud that Visa already owns.
Currencycloud’s cloud-based platform offers a broad set of APIs enabling banks and financial services providers to offer currency exchange services, including real-time notifications on foreign exchange transactions, multi-currency wallets, and virtual account management. The Currencycloud platform supports nearly 500 banking and technology clients with reach in over 180 countries.
See: MazumaGo raises seed capital and is listed as “Emerging Rocket”
Currencycloud will strengthen Visa’s existing foreign exchange capabilities by extending them to better serve financial institutions, fintechs and partners while enabling new use cases and payment flows. Currencycloud will accelerate the time-to-market and improve payment transparency for clients looking to offer flexible, digital-first, international payment services that provide better visibility and control to consumers and businesses around the world.
Cross-border payments have seen significant growth due to rising demand from businesses of all sizes to engage in international trade. A recent study revealed that 43% of all small businesses conducted international trade in 2020.1 The addition of Currencycloud’s capabilities to Visa’s network will widen access to innovative international payment products that help businesses meet their cross-border needs.
“The acquisition of Currencycloud is another example of Visa executing on our network of networks strategy to facilitate global money movement,” saidColleen Ostrowski, Visa’s Global Treasurer. “Consumers and businesses increasingly expect transparency, speed and simplicity when making or receiving international payments. With our acquisition of Currencycloud, we can support our clients and partners to further reduce the pain points of cross-border payments and develop great user experiences for their customers.”
See: ‘Last year we saw about a 300% increase in transactions just using cryptocurrency’: Coinpayments CEO
“At Currencycloud, we’ve always strived to deliver a better tomorrow for all, from the smallest start-up to the global multi-nationals. Re-imagining how money flows around the global economy just got more exciting as we join Visa,” said Mike Laven, Chief Executive Officer, Currencycloud. “The combination of Currencycloud’s fintech expertise and Visa’s network will enable us to deliver greater customer value to the businesses moving money across borders.”
Currencycloud will continue their operations from their headquarters in London and will retain their current management team. The transaction is subject to regulatory approvals and other customary closing conditions.
Continue to the full article --> 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, 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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4 Smart Investments to Raise Your Home’s Value
Guest Post | Jul 25, 2021
Source: Pixabay
When it comes time to sell your home, you likely want to get as much as possible for it. However, if you simply ask for an inflated price, you may not get it. Your home needs to reflect the asking price, and be worth it. If not, it could sit on the market for months.
Thankfully, there are a variety of things you can do in a home that can raise the value it has. Without any further ado, this blog post is going to cover some smart investments to help you raise the value of your home.
Install a Security System
No matter who is buying a home, there is a good chance they want it to be secure. Everyone wants to feel safe in their home, and installing a security system can do just that. They can keep burglars away, and minimize the negative impact if a crime does occur.
Many also come complete with alarms, cameras, and even home alarm monitoring to ensure your home is as safe as possible. Many alarm systems today are very easy to set up and use, and many can even be controlled remotely.
Improve the Curb Appeal
Source: Pixabay
The curb appeal of your home is very underrated when it comes to its impact on value. People start judging a home as soon as they walk up to it, so your curb appeal needs to be on point. If the home looks bad from the outside, potential buyers will already have a negative view of it before they even step inside.
While boosting your curb appeal might seem like a big job, this doesn’t have to be the case. There are many curb appeal improvements that are quite easy and affordable. You can trim up the hedges, fix up the paint or siding on the home, clean up the path, and make sure the landscaping looks great.
Make the Home More Energy-Efficient
A home that is energy-efficient is also becoming a much more desirable feature in homes today. Not only are they better for the environment, but efficient homes will also be cheaper to operate in terms of their water and power bill. Thankfully, there are several ways to make a home more energy-efficient.
You can change out your light bulbs, can get new appliances, seal any air leaks, get double or triple pane windows and even get a programmable thermostat. Even before you sell, you yourself will be able to enjoy the benefits of these energy-efficient changes to reduce your costs and your carbon footprint at the same time.
Make Small Upgrades to the Kitchen and Bathroom
Of course, renovating the home is also a good way to increase how much it is worth. In particular, the kitchen and bathroom are two of the best places to fix up to increase the value of a home. However, it is best to keep these renovations small. If you do too much, the costs can get quite high and you may not be able to get the same return on investment.
So instead of a full remodel, potentially consider switching out a few fixtures, painting and making a few small changes to things like cabinets, flooring or counter-tops. These can be affordable fixes, but completely change how a room looks, for the better.
Any of these four investments can be great for raising the value of your home. Whether you decide to do one, or all of them, you can feel confident they will help you get more when you decide to sell your home.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, 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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