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NetworkNewsWire Announces Collaboration with VanFUNDING 2018 as Official Social Media Sponsor

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Newswire Release | Nov 15, 2018

NEW YORK, Nov. 15, 2018 (GLOBE NEWSWIRE) -- via NetworkWire -- NetworkNewsWire (“NNW”), a multifaceted financial news and publishing company, today announces its participation in the upcoming VanFUNDING 2018: CONVERGE (#VF2018) conference, taking place Nov. 29-30, 2018, at the JW Marriott Parq Vancouver in Vancouver, B.C. NetworkNewsWire is the official social media sponsor of this leading fintech and capital conference, which will explore the explosive growth currently happening relative to blockchain, AI, fintech and funding innovations, global market developments and alternative investing opportunities.

“Our team is proud to be chosen as the official social media sponsor of VanFUNDING 2018,” said Jonathan Keim, communications director for NetworkNewsWire. “We look forward to lending our expertise in promoting the conference to our 1.6+ million followers via dozens of investor-focused brands, helping greatly expand the reach of VanFUNDING 2018 and its sponsors and exhibitors.”

As part of its sponsorship, NNW is featuring VanFUNDING 2018 on its website and the website of its sister brand CryptoCurrencyWire. NNW is also providing a summary profile for each conference partner and disseminating these profiles through its many social channels and robust editorial syndication network with 5000+ outlets to help expand the reach of the event’s sponsors beyond the conference halls.

“NetworkNewsWire is a leading news and publishing entity within the financial world, and we are excited to be including its team of experts among our sponsors at this year’s event,” said Craig Asano, founder and CEO of the National Crowdfunding & Fintech Association of Canada (NCFA), the organizational body presenting VanFUNDING 2018. “Their impressive syndication network, robust following and vast expertise make them a valuable partner to help promote this year’s immersive conference.”

The theme of the expanded, fourth annual VanFUNDING conference is “CONVERGE,” which centers on immersion and building bridges to connect today’s most disruptive emerging technologies, capital market innovations and key stakeholders that are powering new global markets, new decentralized models, new forms of computer intelligence, new IP, new infrastructure and new alternative investment opportunities that encapsulate the vision of a Web 3.0. The conference is a not-to-be-missed event for any fintech innovator, investment professional, company actively raising capital and key decision maker/stakeholder in technology and digital finance. The world’s premier fintech leaders, investors and emerging innovators will be in attendance, as will policymakers and representatives from government regulatory bodies with an eye on the future of finance.

For more information about VanFUNDING 2018: CONVERGE, visit http://vanfunding.com.

About NetworkNewsWire

NetworkNewsWire (NNW) is a financial news and content distribution company that provides (1) access to a network of wire services via NetworkWire to reach all target markets, industries and demographics in the most effective manner possible, (2) article and editorial syndication to 5,000+ news outlets (3), enhanced press release services to ensure maximum impact, (4) social media distribution via the Investor Brand Network (IBN) to nearly 2 million followers, (5) a full array of corporate communications solutions, and (6) a total news coverage solution with NNW Prime. As a multifaceted organization with an extensive team of contributing journalists and writers, NNW is uniquely positioned to best serve private and public companies that desire to reach a wide audience of investors, consumers, journalists and the general public. By cutting through the overload of information in today’s market, NNW brings its clients unparalleled visibility, recognition and brand awareness. NNW is where news, content and information converge. For more information, please visit https://www.NetworkNewsWire.com.

Please see full terms of use and disclaimers on the NetworkNewsWire website applicable to all content provided by NNW, wherever published or re-published: http://NNW.fm/Disclaimer.

About VanFUNDING 2018

VanFUNDING 2018 is a not-to-be missed BLOCKCHAIN, FINTECH & FUNDING INNOVATION and ALT INVESTING conference that features high growth emerging technologies, regulations, game changing projects, the latest trends, deal flow, and investment opportunities. VF2018 brings markets to life with authentic dialogues and engaging stories that educate, inspire and resonate with innovative start-ups, scale-ups, investors, service providers, thought leaders, policy makers and financial institutions who are leading the next generation of finance. Connect with leading experts and learn how to build, buy or sell in Canada’s innovation finance markets. For more information, please visit: http://vanfunding.com.

About the National Crowdfunding & Fintech Association (NCFA)

The National Crowdfunding & Fintech Association (NCFA) 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.

Corporate Communications Contact:
NetworkNewsWire (NNW)
New York, New York
www.NetworkNewsWire.com
212.418.1217 Office
Editor@NetworkNewsWire.com

 


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


Crowdfund Insider | Helena Murphy | Feb 20, 2019 The world of business equity raising is still dominated by men. Melinda Gates wrote in ReCode back in 2017:  “We like to think that venture capital is driven by the power of good ideas. But by the numbers, it’s men who have the keys.”  Gates argued that this was “more to do with historical inequalities than it does with innate ability.” At the time of Gates’ comments, a U.S. analysis found that just 2% of venture capital finance went to start-ups founded by women, and with women comprising just 9% of the decision-makers at U.S. venture capital firms, the lack of female VC representation seemed a compelling reason as to why. The situation a year on shows no sign of improving. Recently, a UK VC & Female Founders report for the Treasury discovered that for every £1 of VC investment, all-female founder teams get less than 1p. Chief Secretary to the Treasury, Liz Truss said it was “incredible” that in 2019 men had a “virtual monopoly on venture capital.” See:  Meet the women who are making sure blockchain is inclusive Even within the more disruptive, and arguably progressive, realms of crowdfunding, women are underrepresented – Crowdcube found ...
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Gender Bias Contributes to Blocking Female Founders Out of Investment & Venture Capital. We Need to Fix This.
NCFA Canada | Feb 15, 2019 EP25-Feb 15:  Unlock the World with Kate Guimbellot and Jason Sosnowski About this episode:   On this episode of the Fintech Friday's Podcast our host, Manseeb Khan sits down with Kate Guimbellot and Jason Sosnowski from the TravelCoin Foundation. They chat about bringing Free Wi-Fi to the world, blockchain in medicine and how their ICO is different from the rest. Enjoy! Host: Manseeb Khan, NCFA, Fintech Fridays show host Guests: KATE GUIMBELLOT, Executive Director, TravelCoin Foundation (LinkedIn) JASON SOSNOWSKI, CTO, TravelCoin Foundation (view) BIOGRAPHIES: Kate Guimbellot has enjoyed 20+ years as a successful top executive by blending her business acumen, vision and passion to build inspired teams and deliver exceptional results. Having served as an Executive Administrator, Vice President and Chief Operations Officer in a variety of industries, she possesses the skills to inspire continued growth in fundraising, stakeholder engagement and brand awareness. As an organizer, speaker and lifelong philanthropist, Kate believes that our purpose in life is to leave behind a deposit, not a withdrawal. Building TravelCoin Foundation since the Spring of 2017 has led to the phenomenal success of TravelCoin, a revolutionary ICO offering that goes public at the end of 2019. The ...
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FINTECH FRIDAY$ (EP25-Feb 15):  Unlocking the World with Kate Guimbellot and Jason Sosnowski of TravelCoin Foundation
CNBC | Hugh Son | Feb 14, 2019 The first cryptocurrency created by a major U.S. bank is here — and it's from J.P. Morgan Chase. Engineers at the lender have created the "JPM Coin," a digital token that will be used to instantly settle transactions between clients of its wholesale payments business. Only a tiny fraction of payments will initially be transmitted using the cryptocurrency, but the trial represents the first real-world use of a digital coin by a major U.S. bank. While J.P. Morgan's Jamie Dimon has bashed bitcoin as a "fraud," the bank chief and his managers have consistently said blockchain and regulated digital currencies held promise. The lender moves more than $6 trillion around the world every day for corporations in its massive wholesale payments business. In trials set to start in a few months, a tiny fraction of that will happen over something called "JPM Coin," the digital token created by engineers at the New York-based bank to instantly settle payments between clients. See:  Do Banks Even Want to Go Blockchain? J.P. Morgan is preparing for a future in which parts of the essential underpinning of global capitalism, from cross-border payments to corporate debt issuance, ...
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JP Morgan is rolling out the first US bank-backed cryptocurrency to transform payments business
Forbes | Alejandro Cremades | Aug 2018 Is debt or equity fundraising smarter for startups? There is more than one way to fund a new business venture and fuel its growth. For almost all, it is going to require bringing in outside money at some point. Even if that is only to multiply what is working or to create a source of emergency capital. The two primary options are to either leverage business debt financing or fundraise for equity investors. Each method can carry its own pros and cons. It is vital for entrepreneurs not to blindly follow the herd just “because everyone else is doing it.” Discover which is best for you, at your stage in business, and stack the most advantages in your corner. Once you have decided the course of action and have a lead investor covering at least 20% of your financing round you would typically also include in the pitch deck the form of financing in which you are raising the capital. I recently covered the pitch deck template that was created by Silicon Valley legend, Peter Thiel (see it here) where the most critical slides are highlighted. Debt Financing We’re all familiar with debt. At ...
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Debt vs. Equity Financing: Pros And Cons For Entrepreneurs
Financial Post | James McLeod | Feb 9, 2019 The Innovation, Science and Economic Development Minister gives the Financial Post an early look at Ottawa’s report card on innovation that will be released next week Navdeep Bains wants Canadians to know that things are happening. Lots of things. The Innovation, Science and Economic Development Minister has a big job on his hands, hauling Canada’s economy into the 21st century by embracing artificial intelligence and a panoply of digital technologies to boost productivity and keep us globally competitive. But the federal government’s innovation agenda is still very much a work in progress. One of its pillars, the five marquee superclusters spaced evenly across the country, is mostly just an idea at this point, although $950 million in funding is beginning to flow. Does Canada feel more innovative than it did four years ago? Are we future-proofing our economy and seizing the jobs of tomorrow? Bains certainly thinks so and that belief will probably be part of the Liberal’s pitch to voters when the country goes to the polls later this year. Next week, he will release a 100-page government report called Building a Nation of Innovators that mostly serves as a ...
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The race to future-proof the economy: Navdeep Bains on the state of innovation in Canada
Modern Consensus | Leo Jakobson, February 4, 2019 Move is latest series of steps by regulator to bring clarity and less confrontational approach to regulations enforcement The U.S. Securities and Exchange Commission wants to know if the technology to help it monitor major cryptocurrency blockchains for risk and regulatory compliance issues exists. The SEC is not looking to buy big data analytics tools at this time, but characterizes its interest as “conducting market research to determine the availability and technical capability,” of the tools presently available on the market, it announced in a notice on Jan. 31 What the SEC wants to know about is the “ability to provide the requested data but also an overview of the processes used to extract the data, convert the data into a reviewable format, and the verification steps to ensure there is no loss in data completeness and accuracy due to the data transformation tools and processes applied.” The software it wants would also make the data easy for SEC staff to read and understand on an ongoing basis, and would provide insights about that data—notably identifying who the data belongs to—as well as a way of ensuring the data is accurate and ...
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SEC wants big data tools for monitoring and enforcing cryptocurrency market compliance
NCFA Canada | Feb 8, 2019 Ep24-Feb 8:  Re-imagining Philanthropy with Daryl Hatton About this episode:  On this Episode of the Fintech Friday's Podcast, our host Manseeb Khan sits down with Daryl Hatton the CEO of Connection Point. They chatted about microprojects, saving little girls and puppies and how to get hooked on Philanthropy. Enjoy! Focus on value and avoid the complicated terminology when growing new innovative markets Branding customer segment-focused funding products, white labeling collaborative uses cases Crowdfunding for good at the intersection of technology, people and impact Host: Manseeb Khan, NCFA, Fintech Fridays show host Guest: DARYL HATTON, Founder and CEO, ConnectionPoint / FundRazr (linkedin) BIO:  Daryl Hatton, CEO of award winning international crowdfunding company FundRazr and of the innovative sponsored crowdfunding company Sponsifi has founded multiple start-ups and helped bring one to a successful NASDAQ IPO in 1999. He actively serves as board member or advisor to handfuls of other hot companies in Canada. In addition, he is a Director and Crowdfunding Ambassador for the National Crowdfunding Association of Canada. As a social media guy and frequent public speaker, his Twitter tagline includes words like “#KingOfGastown, entrepreneur, cardiac survivor, foodie, whisky nut, philosopher, mentor, father and friend.” * Senior Business and Technology ...
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FINTECH FRIDAY$ (EP24-Feb 8):  Re-imagining Philanthropy with Daryl Hatton, Founder and CEO of ConnectionPoint/FundRazr
Forbes | Michael del Castillo | Feb 4, 2019 It’s a balmy 80 degrees on a mid-December day in Singapore, and something is puzzling Allen Day, a 41-year-old data scientist. Using the tools he has developed at Google, he can see a mysterious concerted usage of artificial intelligence on the blockchain for Ethereum. Ether is the world’s third-largest cryptocurrency (after bitcoin and XRP), and it still sports a market cap of some $11 billion despite losing 83% of its value in 2018. Peering into its blockchain—the distributed database of transactions underpinning the cryptocurrency—Day detects a “whole bunch” of “autonomous agents” moving funds around “in an automated fashion.” While he doesn’t yet know who has created the AI, he suspects they could be the agents of cryptocurrency exchanges trading among themselves in order to artificially inflate ether’s price. “It’s not really just single agents doing things on their own,” Day says from Google’s Asia-Pacific headquarters. “They’re forming with other agents to have some larger group effect.” Day’s official title is senior developer advocate for Google Cloud, but he describes his role as “customer zero” for the company’s cloud computing efforts. As such it’s his job to anticipate demand before a product ...
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Navigating Bitcoin, Ethereum, XRP: How Google Is Quietly Making Blockchains Searchable
Bloomberg | Doug Alexander | Feb 4, 2019 Without digital keys, clients lose access to coins, funds Board said last week that it was seeking creditor protection Digital-asset exchange Quadriga CX has a $200 million problem with no obvious solution -- just the latest cautionary tale in the unregulated world of cryptocurrencies. The online startup can’t retrieve about C$190 million ($145 million) in Bitcoin, Litecoin, Ether and other digital tokens held for its customers, according to court documents filed Jan. 31 in Halifax, Nova Scotia. Nor can Vancouver-based Quadriga CX pay the C$70 million in cash they’re owed. Access to Quadriga CX’s digital “wallets” -- an application that stores the keys to send and receive cryptocurrencies -- appears to have been lost with the passing of Quadriga CX Chief Executive Officer Gerald Cotten, who died Dec. 9 in India from complications of Crohn’s disease. He was 30. Cotten was always conscious about security -- the laptop, email addresses and messaging system he used to run the 5-year-old business were encrypted, according to an affidavit from his widow, Jennifer Robertson. He took sole responsibility for the handling of funds and coins and the banking and accounting side of the business and, ...
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Crypto CEO Dies Holding Only Passwords That Can Unlock Millions in Customer Coins
Forbes | Jeff Kauflin | Feb 4, 2019 This article was updated on 2/4/19 to include Ripple, the fourth-most valuable private fintech company in the U.S.  Financial technology startups continue to attract a growing amount of attention and capital. In 2018, valuations of the biggest private companies bulged, and at least six new fintech unicorns were minted in the U.S. U.S. fintechs raised $12.4 billion in funding, or 43% more than 2017, reports CB Insights. That growth outpaced the 30% increase in venture investments across the entire U.S. market. And fintechs will need those dollars—they tend to burn about two to three times as much cash compared with other startups, according to an analysis by Brex, likely due to factors like regulatory hurdles. Here are the 10 most valuable private, venture-backed fintechs in the U.S.: 1. Stripe, $22.5 billion Originally a service to help small online sellers process payments, today Stripe serves tech giants like Microsoft and Amazon, too. In 2018 the company announced three new high-profile products, including credit card issuing technology, point-of-sale software and a billing platform for subscription businesses. Cofounders: CEO Patrick Collison, 30, and president John Collison, 28. Irish-born brothers, dropouts from MIT (Patrick) and Harvard (John) ...
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The 11 Biggest Fintech Companies In America 2019

 

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Peer-to-peer lending will help small businesses stay afloat

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The Globe and Mail | Michael King and Craig Asano | May 30, 2018

With interest rates on the rise and the Canadian banks moving up lending rates, the higher cost and reduced availability of credit will affect all Canadian businesses, like a rising tide lifting all boats. Inevitably some boats will be swamped and sink, particularly if they are smaller and more vulnerable.

One set of borrowers at greater risk are Canada’s 1.14 million small businesses, defined as companies that employ up to 99 workers. Statistics Canada reports that small businesses represented 98 per cent of all businesses, employed 70 per cent of workers, and generated 30 per cent of each province’s GDP on average. This category includes startups and high-growth firms, which represent Canada’s best hope for job creation and economic growth.

As credit becomes less available, small businesses face a difficult choice of cutting back on investment or turning to more expensive borrowing, such as credit cards or payday loans. Either option is bad.

Fortunately, small businesses now have an alternative source for loans called peer-to-peer (P2P) lending. These online platforms match borrowers and investors directly and can provide loans cheaper and faster than traditional sources. How can that be? The answer is technology.

Taking a step back, small businesses are financed differently than big ones. Most Canadian startups have neither the credit history nor the collateral to secure a bank loan. Statscan reports that more than 80 per cent of startups rely on alternative funding sources such as the entrepreneurs’ savings and personal loans taken out by owners. Only 45 per cent can access credit from financial institutions and 19 per cent receive trade credit from suppliers.

Technology is disrupting this paradigm. P2P lending platforms allow businesses (and individuals) to take out a loan online with the funds crowdsourced by investors who pool their savings to fund loans. Traditionally only financial institutions were set up to screen borrowers and allocate credit. But technologies such as the internet, cloud computing, data analytics and artificial intelligence have opened this asset class to new lenders such as your neighbour or a fellow business owner.

Canada’s first P2P platform, Lending Loop, was launched in late 2015 – a decade after this model was pioneered in Britain by Zopa. Last month, Lending Loop passed $20-million in loans funded on its platform by more than 20,000 Canadian investors. While $20-million is impressive, it is still only a sliver of the $95-billion of credit outstanding to Canadian small businesses as reported by Statscan.

The average small business borrower on Lending Loop’s platform is borrowing $75,000 to $100,000 for three to five years. While interest rates vary substantially, P2P loans typically start at around 6 per cent with an average interest rate of 12 per cent, significantly lower than a credit card. These loans are used to finance inventory and equipment, or to hire new employees.

The Canadian P2P lending market got a boost this month when the Ontario government announced it would contribute $3-million over the next two years to loans funded on Lending Loop’s platform. The Ontario government will fund up to 10 per cent of small business loans, supporting funding of $30-million.

See:

Besides the obvious benefit to small businesses, Ontario’s announcement was important for two reasons. First, Ontario has drawn attention to P2P lending as an alternative funding source and raised awareness among businesses to accelerate adoption. And second, by partnering with a fintech startup, Ontario is leading by example and giving a boost to entrepreneurs working to democratize finance.

Here are four more steps that Canadian policy makers can take to promote P2P lending:

First, Canada should follow Britain and adopt new P2P lending regulations, as opposed to shoehorning this sector under existing equity regulations. New regulations should ensure the cost of due diligence borne by lenders is proportionate to the investment risk.

Second, retail investor caps for P2P lending should be raised over time if this asset class is proven to be low risk, increasing the pool of funds available to meet the needs of small businesses.

Third, the federal government should partner with industry to provide more education for investors and small businesses. This effort should include data collection and benchmarking to allow researchers to establish what is working and what is not.

Fourth, Canada should adopt Britain’s mandatory referral program. Banks that reject a small-business loan must refer unsuccessful applicants to a government portal that connects them with alternative lenders who may be able to assist them.

Our hope is that Canadian politicians recognize that promoting innovation means more than cutting ribbons and offering tax credits. It is about plugging holes in a leaky financial system and adding wind to the sails of small businesses to move them forward.

 

Continue to the full article --> here

 


The National Crowdfunding & Fintech Association of Canada (NCFA Canada) is a cross-Canada non-profit actively engaged with cryptocurrency, blockchain, crowdfunding, alternative finance, fintech, P2P, ICO, and online investing stakeholders globally. NCFA Canada provides education, research, industry stewardship, services, and networking opportunities to thousands of members and subscribers and works closely with industry, government, academia, community and eco-system partners and affiliates to create a strong and vibrant crowdfunding and fintech industry.  Join Canada's Fintech & Funding Community today FREE!  Or become a contributing member and get perks. For more information, please visit:  ncfacanada.org

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What we can learn from Ontario’s $3 million loan to small business

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NCFA Canada | By Gary Buisansky | May 11, 2018

Summary

It's not every day we wake up to hear that the Ontario Government has committed to a loan of 3 million Dollars for small business. A market woefully underserved by traditional lenders.

Beyond the benefit this will have for small business, it provides testimony to the National Crowdfunding & Fintech Association of Canada’s continued advocacy for financial and regulatory support to the sector. (You can read the NCFA’s March 2018 submission to Finance Canada here and Lifting the Veil on Peer to peer Lending in Q1 2016 here).

As an industry, while we navigate the regulatory hurdles, there are some lessons we can take away from this, to better help ourselves and the Canadian market. There are also several Canadian success stories which we should not lose sight of. AI, Crypto currency and blockchain, are all thriving in Canada.

Ontario Government supports small business

Lending Loop, an active member of the NCFA, has been making the news lately with an announced 2-year pilot project partnership with the Ontario Government for a $3 million loan.

If you're not familiar with Lending Loop, it fills an important void in the market, connecting small businesses and Canadian retail investors, willing to lend to them.

Through the Lending Loop platform, small companies can finance loans at reasonable rates, often within days of their loan application.

These borrowers face very real challenges securing funding in the Canadian market with debt finance to SME's considered very risky. Where loans are made, they usually come with eyewatering interest rates, reflecting their often-limited track record, lack of financial information and availability of collateral.

See:  Ontario government invests in fintech to boost small-business lending

Loans provided by Lending Loop will now have a 10% government participation, with the government portion of the loan amount treated like any other; the principle amount will be repaid together with interest.

The anchor investment by the Ontario Government will enable total funding of around $30 million to Ontario's SME's providing welcome relief to an under banked market and provide leveraged economic benefit into the broader economy.

This is a clear win for all parties. But what can the greater fintech community learn from this success?

The importance of government relationships and support for fintech companies

Cato Pastoll, CEO and Co-Founder of Lending Loop, makes the point that fintech companies underestimate the importance of government relationships, particularly those in the startup phase. He suggests:

"Its up to you to educate the regulators about your business and what societal benefits it provides. You need to make yourself heard. For the most part, fintech entrepreneurs do not make it a priority to try work with government.

It can be vital, particularly in regulated industries, to find the time and make the effort. The governments role is to hear the challenges industries and people are facing and want to understand the dynamics of the market".

In his experience, regulators and government only hear part of the story and if fintech does not speak up, then regulators are left with only the incumbents viewpoint.

Government recognizes that Canada can play a bigger game

In a study released in December last year, the Canadian Competition- Bureau, observed:

"...other jurisdictions have more welcoming and innovationconducive regulatory environments than Canada. The United Kingdom, the United States, Singapore, Germany, Australia and Hong Kong have been identified as leading fintech hubs based on talent, funding availability, government policy and demand for fintech".

This contrasts with the position in Canada, where regulatory gaps, uncertainty and lack of consistency across provinces prevail.

An 11-point plan has been proposed, that includes harmonizing regulation across geographic boundaries, and identifying a fintech policy lead for Canada. These solutions would go a long way to addressing key roadblocks in the growth and development of Canadian fintech. Additionally, Craig Asano, Executive Director of the NCFA, makes the point that:

To help verify Canadas competitive position relative to other jurisdictions, additional resources and support are needed for data collection and education. This will help quantify the number of fintech companies, capital investments, financings and loan volumes of new funding models, and the time and cost spent on compliance.

The Canadian government is extremely well placed to support the sector. The Business Development Bank of Canada (BDC) is the largest VC fund in the country with over $1 billion in capital under management. Most Canadian VC funds have government money, either directly through BDC investing in the funds or indirectly through funds of funds that in turn invest in VC's.

The significance of government involvement and ability to support and foster a sustainable fintech sector, with market confidence is critical. The C.D. Howe Institute makes the case for a suite of recommendations that, if adopted, will better position Canada to take advantage of its investments in the technological revolution that is underway throughout the economy.

Right way round regulatory sandboxes could offer short term benefits

While Canada makes use of regulatory sandboxes to help start-ups test new products or services in a controlled environment, there is room to improve the model. Unlike competitor countries including the UK and Australia, which offer flexible and proportional regulatory frameworks, Canada follows a more paternalistic model.

See:  How Blockchain and Crypto are Impacting Canadian Fintech Markets

Cato Pastoll says the Canadian model has it the wrong way around.

In Canada one must adjust your business to fit in with the existing regulatory models rather than forcing regulators to figure out how best to regulate.

Getting this right is critical in his view, particularly if we are going to compete with other countries.

What this requires is a mind shift followed by active dialogue between stakeholders and industry to work out a better framework for regulatory sandboxes.

That said, there are some areas of fintech where accelerator programs and innovation hubs are showing strong results.

Artificial Intelligence and Blockchain is accelerating in Canada

KPMG International in their Pulse of Fintech Q4'17 Report, highlights AI as a major driver of innovation in the Americas, particularly in the US and Canada.

It refers to Canada as, "a hotbed for fintech innovation", and goes on to say that Canada’s participation in the space is getting more notice with world-class fintech hubs in Canada rapidly maturing with increased attention from US investors.

Crypto currency and blockchain related ventures are also recognizing Canada as a friendly jurisdiction.  With strong investor appetite available, crypto mining companies, Hut 8 Mining, BitFury and HIVE have all come to market to capital through the TSX-V.

See:  Registration Open: Convergence of the titans: Nobel Peace Prize Recipient, Irakli Beridze, to Present in Toronto at AiDecentralized Summit (May 22)

More recently, the Ontario Securities Commission consented to the listing of the first Canadian Bitcoin ETF on the TSX under the ticker, HBLK which invests in companies involved in blockchain and distributed ledger technologies.

And over the past few days, Huobi a Singapore-based bitcoin exchange, (and the world’s number three exchange by 24-hour volume), has stated its intention to expand its operations to Toronto.

General Manager of Huobi, Ross Zhang stated;

"Canada is emerging as a leading blockchain nation, and Toronto is set to become one of the next most active blockchain hubs across North America".

Canada's fintech time is now

This serves to demonstrate that If Canada is to capitalize on the wave of fintech opportunity washing our shores, we need to act swiftly and get our regulatory house in order.

Without the need to reinvent the wheel, we can borrow from global best practices. We must continue to lobby for a unified regulatory framework and insist that the Federal Government champion fintech. Fintech after all has the wherewith-all to make a marked difference in our economy.

It would be a sad day if in years to come, we look back and wonder how we let slip what could have been ours to have.

 

Gary Buisansky is a freelance writer for NCFA and founder of Coin My Copy  which specializes in writing marketing content, including white papers, website copy, articles and case studies for fintech and traditional finance companies.

 


The National Crowdfunding & Fintech Association of Canada (NCFA Canada) is a cross-Canada non-profit actively engaged with cryptocurrency, blockchain, crowdfunding, alternative finance, fintech, P2P, ICO, and online investing stakeholders globally. NCFA Canada provides education, research, industry stewardship, services, and networking opportunities to over 1700+ members and works closely with industry, government, academia, community and eco-system partners and affiliates to create a strong and vibrant crowdfunding and fintech industry.  Join Canada's Fintech & Funding Community today FREE!  Or become a contributing member and get perks. For more information, please visit:  ncfacanada.org

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Canada’s Largest Investment Crowdfunding Platform Hits $10 Million of Combined Capital Raised to Support Growing Canadian Businesses

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Digital Journal - FrontFundr Release | April 9, 2019

Investment crowdfunding is an alternative source for companies seeking capital to grow their businesses.

VANCOUVER, BC, April 09, 2018 /24-7PressRelease/ -- "We are pleased to announce that we have now raised a combined $10 million for Canadian companies through our online platform," said Peter-Paul van Hoeken, FrontFundr's C.E.O. "We have enabled over 18 Canadian companies to obtain the funding they need to grow while creating communities of supporters and advocates for each company's products and services."

Craig Asano, Founder and CEO of the National Crowdfunding and Fintech Association, NCFA Canada said. "We are thrilled to see the growth of FrontFundr and congratulate them on reaching the $10 million milestone! It clearly demonstrates the availability and potential of investment crowdfunding capital to support the growth of Canadian businesses."

See:  How to Effectively Market an Equity Crowdfunding/Reg A+ Offering

Investment crowdfunding is an alternative source for companies seeking capital to grow their businesses. Partly available in some Provinces it was fully legalized in 2015. Crowdfunding not only allows Canadians to invest in private companies, from as little as $100, but it allows companies access to capital and a community of stakeholders. A recent example, and part of the $10 million raise, is Red Mountain, that enabled people to own a piece of a ski hill in British Columbia, Canada. Over $2,500,000 was raised through the campaign, from 742 backers, many of whom gained perks such as lift passes as well as shares.

About FrontFundr:

FrontFundr is an online investing platform that empowers Canadians to find and make direct investments in the private companies they believe in - and become stakeholders in their future. FrontFundr's online exempt market dealer (EMD) status plus its modern technology lets users across Canada easily invest in innovative growth businesses in under 12 minutes and starting from $250. Own your share.

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The National Crowdfunding & Fintech Association of Canada (NCFA Canada) is a cross-Canada non-profit actively engaged with both social and investment crowdfunding, alternative finance, fintech, P2P, ICO, and online investing stakeholders across the country. NCFA Canada provides education, research, industry stewardship, and networking opportunities to over 1600+ members and works closely with industry, government, academia, community and eco-system partners and affiliates to create a strong and vibrant crowdfunding and fintech industry in Canada.  For more information, please visit:  ncfacanada.org

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Canadian Crowdfunding Industry Highlights Urgent Need for Changes

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Locavesting | Staff Writer | March 16, 2018

Some Americans may envy Canada’s charming president and progressive politics, but when it comes to investment crowdfunding, the two countries are in the same boat.

In an appeal to government regulators this week, Canadian crowdfunding and financial tech advocates called out an “urgent need for regulatory changes and government support” for Canada’s entrepreneurial and capital raising ecosystem. That includes streamlining the country’s crowdfunding regulations and educating the public about the laws.

“Entrepreneurs are reluctant to start up in Canada due to the high costs (relative to a small financing), and significant ongoing regulatory burdens. Investors are inhibited by caps on investment and limited education about  the benefits and downside risks of crowdfunding and other exempt financings. This pushes many talented entrepreneurs and investors to overseas jurisdictions that better understand (and support) innovation and the economic potential of start-ups and small businesses,” writes the National Crowdfunding & FinTech Association (NCFA), a nonprofit Canadian trade group.

In Canada, online capital-raising rules vary by province, and efforts to “harmonize” the laws have fallen short.

The U.S. is in a slightly better position. The U.S. crowdfunding industry falls under a single federal framework, the 2012 JOBS Act.  However, 34 states have passed intrastate laws that can vary greatly.

But U.S. complaints are similar in other regards, including the need to improve burdensome regulations and educate the public about the new laws.

Of particular note, the NCFA decried the lack of support and incentives for education.

“Introducing new requirements/exemptions without a robust ongoing educational program is like asking new drivers to follow a road that contains no ‘signs’, without maps,” writes the NCFA.

In a 2017 survey by the NCFA, over 70% of respondents said more education was required to attract more investors to crowdfunding. A lack of awareness and education around crowdfunding laws is frequently cited as the number one challenge in the U.S. as well.

Data collection and analysis is also lacking, according to the NCFA.

Encouraging Investors

One area where Canada stands out may be in offering tax incentives for investors, although not specifically in conjunction with crowdfunding. The report doesn’t mention it, but some Canadian provinces, such as New Brunswick, have long offered tax incentives for local investors that have been held up as a model for the U.S.

Still, those efforts pale compared to the UK, where investment crowdfunding is more mature and investors may easily invest in local companies and startups via tax-advantaged retirement accounts. In the U.S., that requires setting up a separate (and cumbersome) self-directed IRA.

The NCFA warns that, without action, Canada risks falling further behind in global competitiveness and financial innovation. They cite an Ernst & Young “Fintech Adoption Index” that put Canada near the bottom of global fintech adoption rates, at just 18 percent. The U.S. clocked in at 33%, the average adoption rate, trailing countries such as Australia (37%), the UK (42%), India (52%) and China (69%).

The NCFA concludes with recommendations, including streamlining the regulations and potentially adopting British Columbia’s more preferable framework. It also advocated for regulatory “sandboxes” that allow for controlled financial experimentation—an idea that has been implemented in the U.K. and proposed in the U.S.

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Fintech in Canada: The Good, The Bad & The Ugly

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CrowdfunInsider | JD Alois | Mar 14, 2018

Last week during the National Crowdfunding and Fintech Association of Canada’s annual event, FFCON2018, there was a single presentation that provided a state of Fintech in Canada. Professor Michael King,  from the Scotiabank Digital Banking Lab @ Ivey Business School, delivered an excellent synopsis of what’s working and what’s not.

Entitled “the Current State of Fintech in Canada: The Good, The Bad and The Ugly,” King’s deck bulleted out both the high and the low.

So what is working out well up North?

Canada is growing Fintech startups. There is more than 800 today which is pretty respectable for a smaller country.

Areas of prominence include Blockchain, AI, Payments, peer to peer and more.

See: CSE aims to be Canada’s first blockchain platform for trade clearing and settlement

There is an increasing number of incubators and accelerators to promote sector growth, plus recognition by universities and other support sectors that Fintech is of strategic importance.

What is not so good, or perhaps kind of bad?

Traditional financial institutions have been slow to adopt Fintech innovation or partner with emerging disruptive financial firms. King provided a painful, but probably not a unique example, where a traditional bank required 120+ signatures to partner with Fintech firm.

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The National Crowdfunding & Fintech Association of Canada (NCFA Canada) is a cross-Canada non-profit actively engaged with both social and investment crowdfunding, alternative finance, fintech, P2P, ICO, and online investing stakeholders across the country. NCFA Canada provides education, research, industry stewardship, and networking opportunities to over 1600+ members and works closely with industry, government, academia, community and eco-system partners and affiliates to create a strong and vibrant crowdfunding industry in Canada.  For more information, please visit:  ncfacanada.org

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Heard in Toronto at #FFCON18: Blockchain is the Future, Alternative Finance is Now

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This past week, the National Crowdfunding and Fintech Association of Canada(NCFA) held its annual event in Toronto that saw over 500 participants join to discuss Fintech from around the world. FFCON18 Velocity covered the wide-ranging spectrum of current topics in the realm of alternative finance including Blockchain, cryptocurrency and other forms of financial innovation. The event was appropriately held in the Design Exchange in downtown Toronto – the former home of the Toronto Stock Exchange.

The NCFA always puts on a good event bringing together a diverse group of industry participants including investors, entrepreneurs, platforms and public officials – including provincial regulators. Crowdfund Insider was pleased to be involved in the annual event. Today, we are sharing just a few of the interesting quotes we heard while participating in FFCON18.

 

“Nobody knows anything. We are at the very beginning. It is going to be different from anything anyone is thinking right now.”

“Bitcoin has lost the race to be a currency but it is going to be a great store of value. A better gold.”

“I am a believer in utility tokens but security tokens are going to be bigger.”

“Regulators have two options: Regulators can roll out the red tape or roll out the red carpet. The genie is already out of the bottle.” – Lou Kerner, CryptoOracle

 

“When Ripple got started they were not exactly sure where to apply their technology.” – Diana Adachi, CEO of Pegasus Fintech

See: 

CSE aims to be Canada’s first blockchain platform for trade clearing and settlement

OSC approves Canada’s first blockchain ETF

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The National Crowdfunding Association of Canada (NCFA Canada) is a cross-Canada non-profit actively engaged with both social and investment crowdfunding, alternative finance, fintech, P2P, ICO, and online investing stakeholders across the country. NCFA Canada provides education, research, industry stewardship, and networking opportunities to over 1600+ members and works closely with industry, government, academia, community and eco-system partners and affiliates to create a strong and vibrant crowdfunding industry in Canada.  For more information, please visit:  ncfacanada.org

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