Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Category Archives: P2P, Lending, Digital Bonds, BNPL, Private Credit
Clearco Secures $60M Series D, Recapitalization
Funding | Oct 6, 2023
Image: Unsplash/Jim Wilson
In a striking rebound, Clear Finance Technology Corp., widely recognized as Clearco, has successfully secured a pivotal round of funding, navigating through a potential turnaround.
The recent recapitalization efforts, including a noteworthy $60 million Series D round and a new asset-backed financing facility, have provided Clearco with up to $100 million in financing capacity.
The recapitalization not only symbolizes a turnaround for Clearco but also underscores its resilience and strategic recalibration amidst challenges, including staff layoffs and the departure of co-founder and CEO, Michele Romanow.
See: DealPoint Wins Digital Commerce Calgary Fintech Awards $125K
The company, now under the leadership of CEO Andrew Curtis, has pivoted its product focus towards its Invoice Funding product, offering predictable payment amounts and user-friendly terms, thereby aligning with the current and future needs of e-commerce businesses.
Clearco, renowned for utilizing AI and proprietary machine learning technologies to underwrite businesses, has been instrumental in aiding customers to fund inventory and marketing invoices, ranging from $10,000 to $2 million.
To date, the company has financed over 10,000 companies, injecting more than $2.5 billion into various businesses, thereby fostering growth and innovation across multiple sectors.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Empowering Investors with Fractional Bond Options
Sep 27, 2023
Image: Unsplash/Viktor Forgacs
Citi's groundbreaking partnership with BondbloX underscores the rising prominence of fractional bonds in reshaping the global investment landscape.
What are Fractional Bonds?
Fractional bonds (see Digital bonds), as the name suggests, allow investors to own a fraction of a bond rather than the entire bond. This concept is similar to buying shares in a company. Instead of purchasing an entire bond, which might be cost-prohibitive for many retail investors, they can buy a fraction of it. This democratizes bond trading, making it accessible to a broader audience.
See: Catastrophe Bonds: Killer Use Case for Digital Asset Adoption?
The concept of fractional bonds is still relatively new, but it's gaining traction rapidly. Platforms like BondbloX are at the forefront of this movement. BondbloX, which started as BondEvalue, has made significant strides in simplifying bond investing. Their platform allows investors to track and trade bonds electronically, much like stocks. This approach not only makes bond trading more accessible but also integrates the advantages of equities trading into the bond market.
Citi and BondbloX's IRL Partnership
One of the most notable partnerships in the fractional bond space is between BondbloX and Citi. As we've seen from the recent announcement, Citi has become the first digital custodian participant of the BondbloX Bond Exchange (BBX). This collaboration provides Citi’s clients and other BBX participants with access to digital custodial services, a broader reach to the global bond market, and immediate atomic settlement at the point of trade execution.
Furthermore, BondbloX's platform is regulated by the Monetary Authority of Singapore (MAS) as a Recognised Market Operator. They have the backing of significant players like Citi and MassMutual Ventures and have global custodians like Citi and Northern Trust supporting their platform.
FFCON23 Video: Rebuilding Trust in Web3: The Role of Custodians and Banks
Being regulated by a reputable financial authority ensures that the platform adheres to stringent standards, ensuring the safety and security of its participants. Citi's involvement as a digital custodian participant ensures that the bonds traded on BBX, whether fractionalized or full-sized, are securely held and settled. This move towards digital custody is seen as a significant step in the transformation of the bond market, making it more transparent and accessible.
Citi's proprietary digital custody technology is scalable and designed to provide settlement and custody services for clients investing in assets issued on permissioned blockchain networks and digital financial management information systems (FMIs). This indicates a move towards a more secure and regulated environment for digital assets, including fractional bonds.
The Future of Fractional Bonds
The future looks promising for fractional bonds. As technology continues to advance and more platforms adopt this model, we can expect to see a surge in the popularity of fractional bonds. The benefits are clear: increased accessibility, the potential for diversification, and the ability to tap into the bond market without significant capital.
Moreover, the introduction of digital tokens and blockchain technology in the financial sector, as seen with Citi's recent pilot program, indicates a potential convergence of traditional finance with modern technology. This could further boost the adoption and popularity of fractional bonds.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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UK Neobank Zopa Reaches 1M Customers and Raises $93M
Funding | Sep 11, 2023
Image: Unsplash/Colin Watts
Founded in 2004, Zopa has now achieved a milestone of 1 million customers and recently raised a $93 million funding injection.
- While waiting for IPO markets to reopen, Zopa, the neobank has successfully raised £75 million ($93 million) in a tier 2 debt fundraise. This fund will be utilized to strengthen its financial position, explore potential acquisitions, and continue the development of new products.
- This recent funding round was spearheaded by IAG SilverStripe, along with participation from other investors.
- Notably, Zopa has raised a total of £530 million to date.
Performance and Focus
- Zopa has a rich history, being in operation since 2005, and was the first peer-to-peer lender in the UK. However, it transitioned to an online-only bank in 2020, offering a diverse range of products, including personal loans.
- Zopa recently announced that it has reached a milestone of 1 million customers.
See: ClearScore and Zopa ink deal to bring open banking to the credit industry
- Zopa has showcased a positive financial trajectory, already achieving EBITDA positive status. The company anticipates turning profitable for the entire year for the first time. The company has projected an annualized run rate of £250 million ($312 million) for the current year.
- The company's value proposition has become increasingly relevant, especially as the UK grapples with the cost-of-living crisis and rising interest rates. Zopa aims to provide a superior alternative to traditional banks, offering fairly priced credit and savings options.
- Despite its growth and expansion, Zopa has no immediate plans to launch services outside the UK. The CEO, Jaidev Janardana, emphasized the vast opportunities within the UK market and mentioned the introduction of two new products this year. The company aims to launch two additional products the following year.
A Few Competitors for Comparison
Zopa, the pioneering UK neobank, faces competition from several financial institutions and platforms in the UK. Here are their main competitors:
- Funding Circle Ltd.: A prominent peer-to-peer lending platform that focuses on small business loans. It has a significant presence in the UK and has been compared to Zopa in terms of size and reputation. However, it's worth noting that while Zopa offers personal loans, Funding Circle specializes in business loans.
See: French Neobank Startup, Green-Got, Collaborates with 1300 Crowdfunded Climate-Conscious Investors
- RateSetter: Once a major player in the P2P lending space, RateSetter transitioned a few years ago when it was acquired by Metro Bank. The bank integrated RateSetter's lending operations, allowing it to lend its savers' deposits using RateSetter's platform.
- Leap: Leap is another platform that offers small, bank-style personal loans similar to Zopa. With Zopa's transition from P2P lending to banking, Leap remains one of the few P2P lending companies in the UK focusing on ordinary personal loans.
Neobank On The Move
Zopa's impressive journey from its inception as the UK's first peer-to-peer lender to its current status as a leading neobank underscores the transformative power of fintech. With a robust customer base and significant funding, Zopa is poised to redefine digital banking in the UK. As the neobank continues to innovate and expand its offerings, it sets a benchmark for others in the industry, highlighting the potential of digital-first financial solutions in today's interconnected world.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Future of Home Loans and Intercontinental Exchange’s Big Bet on Tech
Real Estate | Sep 9, 2023
Image: Unsplash/Brian Babb
Jeff Sprecher, the founder and CEO of the commodities and securities trading giant, Intercontinental Exchange (market cap: $64 billion), makes a bold $11.9 billion acquisition propelling the mortgage industry's digital leap, transforming age-old loan processes with data-driven platforms.
- Despite the mortgage market facing challenges with rates hitting two-decade highs and a decline in originations post-pandemic, Sprecher has showcased his confidence in the potential of digitizing the mortgage process.
- On September 4, Intercontinental Exchange acquired home loan servicing and data analytics provider Black Knight for a whopping $11.9 billion. This acquisition surpassed the $8.2 billion Sprecher spent on the 2013 purchase of the New York Stock Exchange.
- With the acquisition of Black Knight, Intercontinental Exchange can now offer homeowners a comprehensive platform that provides everything from AI-calculated home value estimates to updates on the best loan products available for refinancing.
- Sprecher's platform, ICE Mortgage Technology, holds dominant positions in various segments of the mortgage industry.
- Ellie Mae handles 50% of all originations;
- MERS manages 85% to 90% of registrations; and
- Black Knight dominates 65% of the servicing market.
The Role of Data in Modern Mortgage
Data-driven platforms, such as the one envisioned by Sprecher, can offer many benefits to lenders and borrowers seeking bad credit home loans. By harnessing the power of real-time data analytics, these platforms can streamline the loan approval process, ensuring quicker and more accurate decisions. Additionally, for homeowners considering renovations, Home Remodeling Contractors San Jose can provide insights into maximizing property value through strategic upgrades.
See: New Mortgage Guidelines in Exceptional Circumstances: Implications for Fintech and Bank Mortgage Lenders
These platforms can provide:
- Real-time insights: Borrowers can receive immediate updates on their home's equity value, loan balances, and interest rates.
- Better loan products: With access to a wealth of data, lenders can design loan products tailored to the specific needs of borrowers.
- Informed decision-making: Comprehensive data analytics can guide borrowers in making decisions about refinancing, purchasing a new home, or choosing the best loan product.
Traditional Mortgage Process
- Paper-intensive and time-consuming.
- Involves multiple intermediaries, including lawyers, notaries, and lenders.
- Average cost of at least $8,000.
- Takes around two months from origination to closing.
See: Halal Mortgages Emerging in Canada’s Housing Market
Digitized Mortgage Process Introduced by Intercontinental Exchange
- Streamlined and efficient.
- Reduces the need for intermediaries through electronic platforms.
- Significant cost savings for borrowers.
- Reduces the time from origination to closing to just a few days.
- Provides real-time data to both lenders and borrowers, enhancing decision-making.
Final Thoughts
The acquisition of Black Knight by Intercontinental Exchange marks a significant milestone in the digital transformation of the mortgage industry. With a focus on data-driven decision-making, streamlined processes, and enhanced customer experiences, the future of the mortgage industry looks promising. As more industry players recognize the potential of digitization, we can expect further innovations and improvements in the way mortgages are processed and managed.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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How To Fund A Project: 6 Useful Ideas
Aug 31, 2023
Image: Unsplash/Airfocus
Funding a project is one of the most sought-after objectives for many creative minds, and having the right idea on how to do it can create great opportunities. Have you ever wanted to pursue an entrepreneurial venture or create something innovative but lacked funds? If so, this blog post is for you! Here, we’ll discuss 6 different ways that one can use to fund any project no matter its scope – from small local initiatives in your community to ambitious global projects with significant capital requirements. Whether you're starting as an entrepreneur or have experience under your belt, this guide will provide valuable insight into what options are available when raising money for a passion project. So let's dive in and explore together how we can find success with the support of powerful potential sponsors.
Grants
Exploring your area of interest can be a thrilling journey. Researching and discovering new methods, technologies, and innovations that can help further your cause is every researcher's dream. However, this passion can come with its own set of challenges. Lack of funding and resources can hinder your progress and leave you feeling stuck. But with research grants for businesses and organizations in your field of interest, you can put those worries to rest. These grants can provide you with the necessary funding and support to take your research to new heights. Imagine the possibility of having the resources you need to conduct rigorous studies and experiments. With research grants, you can make your vision a reality and make a valuable contribution to your field.
Commercial Real Estate Loans
Commercial real estate loans are a financing option for businesses and organizations that need to purchase property. If you have a project that requires the acquisition of an existing building or a piece of land, then this could be an ideal solution for your funding needs. According to the folks from CommLoan, the benefits of opting for commercial real estate loans include lower interest rates than traditional business loans, more flexible repayment terms, and access to larger loan amounts. Furthermore, you'll have the added security of owning your outdoor or indoor space that's tailored to fit your project's needs. Acquiring a commercial real estate loan is an ideal option for those seeking funding for their projects that require acquiring physical space.
Microloans
While grants may be the most beneficial option for those who are looking to fund a long-term research project or business venture, microloans can also prove to be useful. These small-amount loans are offered from banks and other private lenders and usually require less paperwork compared to traditional loans. Microloans offer flexibility in terms of loan amount, repayment duration, and interest rates – which makes them great for those who may not qualify for traditional loans. Whether you need to pay off some bills, purchase essential equipment, or hire an extra team member, a microloan can provide the necessary funds and support in your time of need.
Crowdfunding
Crowdfunding can be a powerful tool to turn your creative ideas into reality while also engaging with your network. It's a fantastic way to reach out to people and showcase your passion project. One of the best aspects of crowdfunding is the opportunity to offer perks to your donors in exchange for their support. These perks serve as a way to show appreciation to your donors while also helping to incentivize donations. The possibilities for perks are endless and can range from a simple thank-you note to exclusive merchandise or experiences. The key is to think about what your potential donors would value most and make it worth their while. Through crowdfunding, you can leverage the power of your network and turn your dreams into a reality.
Equity Funding
Equity funding is a fantastic way to get the financial support you need for your big plans. Instead of taking on loans or racking up debt on a credit card, you can offer shares of ownership in your company or project in exchange for investment. This not only helps you secure the funding you need, but it also gets other people excited about your ideas and involved in your success. Plus, with more people invested in your venture, there are more resources to draw from, including valuable advice and guidance from experienced investors. So if you're ready to take your dream to the next level, consider equity funding and invite others to come along for the journey.
Angel Investors
Angel investors are individuals or organizations that provide capital to get projects off the ground in exchange for equity. They tend to invest at an early stage, often when a startup is just getting started and needs help with funding. Angel investors usually have more experience in business than venture capitalists, which can be beneficial if you're looking to get advice on how to go about setting up your venture. Plus, their investment isn't limited to money; they can also provide valuable resources and connections that can help you get ahead in the industry. So if you're looking for an experienced mentor to guide you through the process of launching a successful business or project, consider seeking out angel investors who can support you along the way.
Image: Unsplash/Alexander Schimmeck
All of these options come with their own unique set of challenges and rewards. While there is no one-size-fits-all approach when it comes to funding a project, understanding your options is essential. Whichever option you choose, mapping out a successful plan for long-term success requires dedication and hard work. Start by setting realistic goals and making sure that you’re clear on each step that needs to be taken to achieve them. We encourage our readers to take the initiative to explore the rest of this series and see which type of funding will resonate best with your project or business. And remember, you have the power to chart your course - good luck!
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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Klarna’s Meteoric Rise in the Canadian Financial Ecosystem
News | Aug 9, 2023
Image: Klarna
Klarna, the AI-powered global payments network and shopping destination, has made significant strides in the Canadian market since its inception. With its recent announcement, the company has solidified its position as a major player in the Canadian financial landscape.
From Launch to Leader
Klarna opened its doors to the Canadian market in February 2022. In the short span of less than 18 months, the company has achieved remarkable milestones that many businesses only dream of reaching in such a timeframe.
See: Future of Neobanking: Exploring the Landscape of AI-Powered Digital Banks
Recent Milestones:
- Growth: Klarna now boasts a staggering 640,000 active consumers, a testament to its growing popularity and trust among Canadians. The company has efficiently processed over 2 million orders, indicating a robust and reliable system catering to a vast number of transactions.
- Innovative Features: Klarna has not rested on its laurels. It introduced the "Pay Now" option, allowing Canadians an immediate and full payment facility. The Klarna Express Button further simplifies the checkout process, ensuring a seamless shopping experience.
- Strategic Partnerships: Klarna has successfully forged alliances with esteemed brands such as Ssense and Airbnb. On the distribution front, collaborations with giants like Stripe, WooCommerce, and Adyen have been established.
Retailer Empowerment
One of Klarna's standout initiatives has been its affiliate marketing publisher program in Canada. This program allows brands to tap into Klarna's extensive consumer network. Notable brands like Coach Outlet, Booking.com, Sephora, Pandora, and lululemon have already integrated this program, showcasing Klarna's growing influence.
Anticipated Moves for Further Growth
While Klarna's current achievements are commendable, the company is expected to make several strategic moves to ensure sustained growth:
See: McKinsey: Tech Trends 2023 That Every Fintech, Bank, or Financial Service Provider Must Consider
- Klarna may look to introduce more tailored financial products and services catering to the unique needs of Canadian consumers.
- Building on its current partnerships, Klarna might explore collaborations with more local brands and businesses to further penetrate the Canadian market.
- With the rise of digital banking and e-commerce, Klarna could invest in enhancing its technological infrastructure, ensuring faster, more secure transactions.
In Conclusion
Klarna's journey in Canada, though relatively short, has been filled with significant achievements. Its commitment to innovation, coupled with strategic partnerships, has set it on a path of continued success. As the company looks to the future, the Canadian market eagerly anticipates its next big move.
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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Tetra and Figment Unite to Introduce Staking Services in Canada
Digital Asset Partnership | Release | Aug 7, 2023
Image: Unsplash/krakenimages
Tetra Trust Company, a Canadian leader in digital asset custody, has announced a strategic partnership with Figment, a leading staking infrastructure provider.
This partnership marks a significant milestone in the Canadian digital asset landscape and sets the stage for a transformative future. Here are the key details:
- Strategic Partnership
- The collaboration between Tetra and Figment aims to democratize staking services for institutional clients in Canada.
- Tetra, established in 2019, has made significant strides as Canada's only trust company licensed to custody digital assets.
- Figment, renowned for its pioneering staking infrastructure, serves over 250 institutional clients worldwide.
Hear Didier Lavallée, CEO at Tetra speak at FFCON23: Strategies for Canadian Fintech Companies Amidst Regulatory Crackdowns
- Expansion
- With this partnership, Tetra will expand its product suite to include staking services, reaffirming its commitment to growth in the dynamic digital asset landscape. By combining Tetra's renowned custody offering with Figment's leading blockchain infrastructure solution, the two companies plan to transform staking services in Canada, delivering unmatched value to institutional clients.
- The partnership unlocks unparalleled opportunities for institutional clients to earn rewards on their digital assets. Tetra's keys are securely located in Canada, and Figment's validators operate within the country, ensuring a strong foundation of trust and compliance within the Canadian regulatory framework.
Didier Lavallée:
This partnership strengthens Tetra's position as the preferred choice for digital asset custody in Canada, proving our dedication to excellence and innovation in our field of expertise.
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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