Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Category Archives: NCFA In The News
Crowdfunding proponents blame regulators for slow growth
The Globe and Mail | Brenda Bouw | December 12, 2016
Canada’s crowdfunding industry is “punching below its weight” compared to international markets, says a new industry report, which blames in part the country’s varied regulations for the alternative investing model.
While the crowdfunding market is growing, it’s “noticeably smaller” compared to the U.S. and the U.K. and expanding at a slower rate, says the inaugural industry report being released on Tuesday by the National Crowdfunding Association of Canada (NCFA).
It shows Canadian crowdfunding volume reached $133-million in 2015 and is expected to grow to $190-million in 2016, “confirming that it is a genuine source of seed and growth capital for companies seeking funding.”
Still, the report says the industry is behind and growing “much slower than Canada’s leading international comparators.”
The report, titled 2016 Alternative Finance Crowdfunding in Canada, cites studies pegging the U.S. industry at $47.3-billion Canadian and the U.K. industry at $5.3-billion Canadian.
It’s the first major report on the crowdfunding industry in Canada, highlighting the state of the alternative finance model and looking at the various types of crowdfunding, including donations/rewards, equity and debt.
It’s the equity crowdfunding market – when investors buy a stake in a private company in hopes of receiving a financial return – that’s being closely watched after new rules were put in place by various provinces about a year ago.
The new regulations are intended to control the market as it opens up to everyday investors. Before the rules were made, only accredited investors, such as institutions and high-net-worth individuals, were able to get in on the ground floor of a young company.
Investors and startups argue the new equity crowdfunding regulations increase access to capital for entrepreneurs, while at the same time giving investors more options. Regulators say the rules are in place to protect investors from putting too much money into young, high-risk companies.
See: Join us at 3rd Annual Canadian Crowdfinance Summit & Expo (March 1-2, 2017)
The report says equity crowdfunding is expected to grow by about 275 per cent this year to $30-million, up from $8-million in 2015. While that’s impressive growth, it’s still lagging compared to international jurisdictions. In the U.K., for example, equity crowdfunding deals reached about £332-million (around $553-million Canadian) in 2015, up from £84 million in 2014.
“We have fragmented, non-uniform and probably non-competitive crowdfunding regulations,” says Craig Asano, NCFA of Canada’s founder and executive director.
Canada has been slower to adopt online alternative finance models, has a smaller population and fewer investors. However, the report says it’s the country multi-provincial regulatory environment that’s stagnating growth.
Some provinces across Canada have different sets of crowdfunding regulations with limits on how much individual companies can raise each year and a cap on annual investments for individuals. In some provinces, the regulations overlap. In others, such as B.C. and Ontario, different rules apply.
The report calls on policymakers to “remove unnecessary burdens and harmonize confusing regulations” that will enable funding portals to grow and profit. It also wants a more level playing field between portals, citing the Ontario Securities Commission’s recent decision to provide Silicon Valley funding giant AngelList special exemptions from registration requirements. It also says more education and awareness is needed for companies and investors to help grow the sector.
Without changes, Mr. Asano said some investors and companies will continue to raise and spend capital outside of Canada where rules are considered more favourable.
“This isn’t just a regulatory issue, but a Canadian innovation and economic development problem,” Mr. Asano says.
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Special (limited) early bird discounts opening soon!
The National Crowdfunding Association of Canada (NCFA Canada) is a cross-Canada non-profit actively engaged with both social and investment crowdfunding stakeholders across the country. NCFA Canada provides education, research, leadership, support and networking opportunities to over 1500+ 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. Learn more at ncfacanada.org.
Major Banks and Fintech Startups Update Their Status to ‘Frenemies’
Techvibes | Brenda Bouw | Oct 18, 2016
The relationship between big banks and financial technology startups has evolved in recent years. First the banks were standoffish to fintech, looking at the industry as a lightweight in a heavyweight ring they've dominated for decades. Then the banks started to see fintech as a threat, as the number of users of their online platforms grew. Today banks and fintechs are striking partnerships and/or investment deals to build fintech solutions together.
The relationship continues to mature, but how cozy the two sides will become remains unclear, say some fintech startups. It depends on how they work together, and consumers, over the longer term.
"I think the relationship will be more like frenemies. We need each other," Chantel Chapman, a Financial Fitness Coach at Vancouver-based fintech Mogo told a crowd at the VanFUNDING 2016 conference in Vancouver on Tuesday, put on by the National Crowdfunding Association of Canada.
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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 stakeholders across the country. NCFA Canada provides education, research, leadership, support and networking opportunities to over 1300+ 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. Learn more at ncfacanada.org.
After Misjudging Market, Connected Bike Maker Vanhawks Has Been Resurrected with a New Approach
Techvibes | Brenda Bouw | Oct 18, 2016
The Vanhawks Valour campaign raised just over $820,000 on Kickstarter.
Vanhawks, maker of Valour, the world's first smart carbon fiber bicycle, has resurrected itself with a new marketing plan after coming close to shuttering earlier this year.
The Montreal-born company, which was a sensation on crowdfunding platform Kickstarter in 2014 before falling into financial difficulties, says its plan includes a hybrid sales model with both online and in-store sales. It's a chance in direction from its online-only sales model that promised to disrupt the bike industry. The now Toronto-based Vanhawks also says it has lined up promising partnerships in the bike industry to help influence sales of its product, which is a $1500 USD bike that can be connected to smartphones via bluetooth and track rider statistics, such as route and speed, in real-time.
"My whole effort for the last few months has been around partnerships, as opposed to throwing money at solving problems," Sohaib Zahid, a cofounder and CEO of Vanhawks, said in an interview on Tuesday. "I have solved it by forming partnerships with people I think will help and believe will put us back on track."
He won't yet name the partners, or the dealers readying to sell the bikes in the U.S. and Canada, but said Vanhawks is 'gearing up for 2017'.
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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 stakeholders across the country. NCFA Canada provides education, research, leadership, support and networking opportunities to over 1300+ 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. Learn more at ncfacanada.org.
Which type of financing is right for your startup? The Pros and Cons of Equity Crowdfunding
Techvibes | Brenda Bouw | Sep 12, 2016
Having a great idea for a business is one thing. Getting the financial backing to grow, scale and make it a success is quite another. Most entrepreneurs approach funding in stages, starting by dipping into their own savings, going cap-hand to friends and family, taking advantage of government grants, crowdfunding and potentially seeking angel and venture capital. The best funding option depends on the business, its track record and growth plans. Some companies stay self-funded forever, while others need the capital injection and expertise from outsiders. Getting the right investment in the right sums at the right time can often make the difference between a startup's success or failure.
Techvibes has put together a list of common investment options for startups, and the pros of cons of each covering
- Boot strapping
- Government grants
- Angel investing
- Crowdfunding
- Equity crowdfunding
- Venture capital
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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 stakeholders across the country. NCFA Canada provides education, research, leadership, support and networking opportunities to over 1300+ 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. Learn more at ncfacanada.org.
White Label Crowdfunding 101: Part II – Players & Profits
Crowdfund Insider | Bret Conkin | Sept 9, 2016
So you want to start a Crowdfunding Portal…
In White Label Crowdfunding 101: Players & Profits, (Part II of our three-part series) we will introduce some of the primary white label vendors, sample sites and criteria for vendor selection to help you navigate the options.
In Part I Pros and Cons, we covered how white label crowdfunding works, benefits, applications and pros and cons versus building custom solutions. In Part III, Marketing & Ops, we will cover advice for the successful management and marketing of your new crowdfunding platform.
See: Crowdfunding Platform Patreon Raises $30M in Series B Funding
The Players (General Vendors)
A) Katipult (Calgary, Canada | Prague, Czechia)
Positioning: Crowdfunding software for private capital markets. Compliant platforms active in over 20 unique regulatory environments.
Roots: Custom software development house JOI Media.
“We have been building, maintaining, and iterating sophisticated crowdfunding software systems for private capital markets for over 8 years. We are a company that prides ourselves on acting as a technology partner rather than a software vendor, which is exactly what our clients are looking for.”
Key Features:
- Complete White Label Platforms since 2008
- Real Estate or Investment Crowdfunding (Equity or Debt)
- Reg D 506 b and c, Reg S, Reg CF, Reg A+ and Intrastate (USA)
- Compliant for Canada, UK, Australia, Italy, France, Africa, others
- Robust investor, issuer and administrator tools
- Many 3rd party integrations
Geography: US, Canada, UK, Europe, Asia, Australia, Africa, Middle East.
Applications: Real Estate Crowdfunding, Equity & Debt Syndication, Investor Management, Private placements, Listings.
Sample platforms: InvestaCrowd, IntroCrowd, BrickRaise
Other Nuggets:
“Many of our clients use the software for operational efficiencies as we streamline many pain points in both the capital raising and investor servicing processes.”
Claim track record of ROI in as little as 6 months.
B) CrowdEngine (Salt Lake City, UT)
Positioning: A white label solution without compromising customization. Offer the most solutions in industry.
Key Features:
- Compliance EngineTM, a unique equity crowdfunding rules engine to let clients configure as they see fit.
- Robust equity feature set including back-office, payments, 3rd party integrations.
- Conduct offerings for national, intrastate and international rules all at the same time on same portal.
- Easy, step-by-step checkout and dashboards.
- Drag and drop website builder/CMS.
- Dedicated launch manager, tools and support.
Roots: Started in 2012. Built ground up, scalable white label solution. Founders have online marketing backgrounds.
“CrowdEngine saw the need when we started in 2012 To provide a scalable, compliant solution to meet market demand.. which is why our technology is so superior, it’s built from the ground up as a white label platform.”
Geography: US, UK, Australia, New Zealand, Sweden, other English speaking countries.
Applications: Equity crowdfunding, Real Estate crowdfunding, Single-raise campaigns, Perks, Non-Profit.
Sample platforms: Florida Funders, CrowdOut Capital, Crowdventure
Other Nuggets: Claim 150+ portals launched.
C) Improve In (Buenos Aries, Argentina)
Positioning: Rapid deploy crowdfunding/crowdlending functionality.
Roots: Customer software development house and certified partner for Crowd Valley API.
“The solutions we provide can me implemented in any scenario or sector (real estate, p2p lending, etc.). We believe the current markets are changing and need solutions to be implemented very fast in order to change their strategies. “
Key Features:
- White label product for fast Minimum Viable Product (MVP) implementations since 2015.
- User-friendly front-end web platform for acquisition and investor management.
- Web platform connects to Crowd Valley API for compliance support and workflows.
- Crowd Valley backend API has over 100 enterprise clients
Wide range of programming languages and technologies offer extensive customization - Wide range of programming languages and technologies offer extensive customization
Geography: US, UK, South America, Latin America, other English/Spanish speaking countries.
Applications: Investment crowdfunding (Equity and debt), IT Solutions, Business process consulting, Outsourcing and recruiting, Training
Sample platforms: CrowdBuilt
Other Nuggets:
“We offer the capability to move to a fully custom solution in the future, if it suits the client.”
The Players – Real Estate Only
See: Should I invest in crowdfunded real estate?
D) GroundBreaker (New York, NY)
Positioning: A Launchpad for real estate ventures. White label platform for real estate capital raisers to market their deals, raise money and manage investors.
Roots: Pivot in 2014 from initial marketplace offering.
“While running a real estate crowdfunding marketplace, we were not able to accommodate every deal that was pitched to us… Clients asked us if they could license our software to streamline their own fundraising operations without depending on their deals being approved by a third party and while protecting their intellectual property. We realized that in the not so distant future, virtually all real estate capital raisers would adopt a similar technology. So we made a full pivot.”
Key Features:
- Complete White Label Platform
- Real Estate only (equity or debt)
- Compliance for Reg A, 506 (b) and (c), Reg S, Title III or Intrastate
- Investor verification, escrow, online distributions, stock certs, audit trails
- Custom web design and programming available
- 30 day turnaround for web design
Geography: US, some other English speaking countries.
Applications: Real Estate Crowdfunding, Investor Management, Private placements.
Sample sites: Commercial Funding Exchange, VestMunity, CrowdTrustDeed
Other Nuggets:
Offer SaaS model where capital raisers can operate on a subdomain and launch a deal in under 30 minutes.
E) Investor Management Services (Charlotte, NC)
Positioning: Offer tools that help Commercial Real Estate (CRE) owners manage their assets and investors more effectively and add efficiency to back office functions.
Roots: Commercial Real Estate Company. Part of Quiet Stream Financial portfolio of companies.
“The IMS Platform was initially developed in 2014 to solve one main problem. There is a lack of transparency between sponsors and investors. In today’s world everything is managed and monitored online: bank accounts, stocks, 401k, etc. Why not commercial real estate investing?”
Key Features:
- Focus on commercial real estate owners
- Robust feature set for investment workflow, management, reporting
- Investor dashboards, document access, CRM and activity tracker
- Distribution waterfalls and processing
- Sponsor dashboards, portfolio valuation, loan tracking
Geography: USA.
Applications: Commercial real estate, Investor management, back-office.
Sample clients: Phoenix Investment Funds, Aion Partners, Pensam Capital.
Other Nuggets:
Over 100 commercial real estate owner customers with $77B in combined assets under management.
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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 stakeholders across the country. NCFA Canada provides education, research, leadership, support and networking opportunities to over 1300+ 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. Learn more at ncfacanada.org.
Crowdfunding for non-emergencies: the etiquette of asking for money online
CBC News British Columbia | Aug 26, 2016
It is fairly common these days for people who fall on hard times to launch a fundraising campaign on one of the popular crowdfunding websites.
Sites like Gofundme.com are full of people raising money because of medical crises or house fires.
But more people are turning to crowdfunding to provide relief for things you might not consider emergencies — like travelling abroad, tuition, and art projects.
And sometimes, like in Ismael Traore's case, it works.
The McMaster international student is in Vernon conducting research. Unfortunately, his study visa expired this year. In order to get a new one, he had to pay his tuition up front, but because of his expired student visa, he was unable to foot the bill.
See: Daryl Hatton speak at the 2nd Annual VanFUNDING Fintech Crowdfunding Conference in Vancouver Oct 18
"I went on my Facebook and told my friends that I'm feeling hopeless right now."
His friends encouraged him to start a crowdfunding page, promising to contribute. Traore was initially reluctant.
"It is very awkward because on this side of the world, the culture is anti-free handout, and ... I don't want to come across as a beggar."
Nevertheless, Traore started his page, and was surprised to see funds accumulated within a matter of hours. He has now raised over $6,000.
"I really felt supported."
Crowdfunding usage spreading
But Daryl Hatton, the CEO of FundRazr, a Canadian crowdfunding website, and a director with the National Crowdfunding Association of Canada cautions there is a fatigue growing in the marketplace around the concept of crowdfunding.
Daryl Hatton, a director with the National Crowdfunding Association of Canada, says the key to a successful campaign is a large network of friends and family willing to donate. (FundRazr)
"In the beginning, this was about critical funding emergencies — they had a car accident, or their house burned down, or they were diagnosed with a cancer or critical illness."
In this way, Hatton says, crowdfunding was building on the old concept of "pass the hat" where communities would rally around those in need.
Today, (crowdfunding) usage has spread further. "It's branched out into many more things in life that are common challenges that we all face in our lives about funding our school, or funding travel."
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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 stakeholders across the country. NCFA Canada provides education, research, leadership, support and networking opportunities to over 1300+ 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. Learn more at ncfacanada.org.
How fintechs are killing the financial adviser
The Globe and Mail | Derek van der Plaat | June 7, 2016
Derek van der Plaat, CFA, is a Toronto-based investment banker and entrepreneur. He was co-founder of Moontaxi Media Inc., a company focused on digital media streaming and downloads.
Those who remember the 1980s might recall that the first music video shown on MTV was the Buggles’ Video Killed the Radio Star – an ominous debut for the new medium. For a time, it looked as if the song title would be prophetic, but radio is actually doing just fine today. In a recent news release, the Canadian Radio-television and Telecommunications Commission noted that Canadian radio revenue was stable at $1.6-billion and profit before interest and taxes increased to almost 19 per cent of revenue – pretty healthy. However, that is not to say the landscape hasn’t changed. Radio continues to be assaulted by new, more personalized alternatives, including podcasts, satellite radio and streaming music services.
See:
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LendingArch Launches Digital Finance Platform for a New Generation
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By sitting on the sidelines in fintech, Canada risks losing golden reputation in banking
I was at two separate financial technology conferences on the same day the other week. It reminded me of those early days in the music business. There are many areas of the financial services industry that are under attack right now, in both consumer and business services. Some financial technology companies (fintechs) compete directly with bank products and services while others, such as Borrowell, Mogo and Do Your Own Mortgage, increase the competitive landscape by offering online access, comparison and referral services.
Fintechs are chipping away at both core, profitable lines of business, such as lending and foreign exchange, as well as underserved markets in which technology can undercut traditional cost structures. For example, branchless banks are offering savings accounts earning up to 3 per cent and BitGold can facilitate foreign exchange for less than half the rates banks charge. On the business side, FundThrough is chipping away at receivable financing, and IOU Financial is focused on small businesses.
Some fintechs have developed proprietary algorithms and are using big data to analyze not just credit scores, but online presence and behaviour, to differentiate good credit risks from bad. Others are online platforms that eliminate middlemen, which has some predicting the demise of the adviser/broker.
Will fintechs kill the financial adviser? They’re already doing it. Discount brokerage services started eroding the retail brokerage business before the term fintech was even invented. The move toward disintermediation is driven by value for money. In the information age, high-quality information is almost free.
More recently, robo-advisers in portfolio management and crowdfunding in the area of startup financing are gaining traction. Wealthsimple charges a management fee of up to 0.5 per cent, much lower than portfolio managers, and you don’t need a million-dollar account to qualify. The National Crowdfunding Association of Canada counts more than 100 active Canadian crowdfunding platforms, alternative finance funding portals and service providers.
But what about the sale of a critical asset, such as a private business, that typically represents most of a person’s wealth? Will we see that being sold by a robo-adviser any time soon? The challenge with a private business is that it is a complex, illiquid asset that’s worth different amounts to different buyers. A business is not a commodity with a list price.
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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 stakeholders across the country. NCFA Canada provides education, research, leadership, support and networking opportunities to over 1300+ 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. Learn more at ncfacanada.org.
