Global fintech and funding innovation ecosystem

Category Archives: NCFA Press Releases

NCFA Submission to Ontario Ministry of Finance: Urgent Need for Regulatory Change

NCFA Canada About Us | Internal Working Committee | Nov 4, 2017

Ontario's Crowdfunding Requirements are Market Stifling

Nov 4, 2017 Toronto -- Canada’s crowdfunding regime must be competitive, in line with global trends, and ‘smarter’ to enable wider access to small amounts of capital (i.e. < $5 million) by early stage companies. There is a ‘funding gap’ in the market as many smaller companies find it extremely challenging to raise funding. This means fewer innovative start-ups, fewer opportunities for investors and constraints on economic growth (and jobs).

Since the regulatory regime came into force on Jan 25, 2016, the National Crowdfunding Association of Canada (NCFA) has conducted numerous stakeholder consultations which overwhelmingly tell us that the current requirements are overly prescriptive, complex and burdensome (costly).  They restrict crowdfunding to a limited number of investors and discourage smaller issuers and licensed dealers from participating.

As a result, Ontario and Canada are falling behind international comparators such as the United Kingdom (U.K.) and the United States (U.S.). Companies and investors are reluctant to participate due to the high costs (relative to the small financing size), unwarranted transactional and ongoing regulatory burdens, and educational gaps.  This pushes many talented entrepreneurs, investors and key stakeholders to overseas jurisdictions that understand (and support) innovation and the economic potential of start-ups and small businesses.

In its 2017 Ontario Exempt Market Report, the Ontario Securities Commission (OSC) confirmed that M1 45-108 had not been used at all in Ontario. A small number of issuers have used online platforms to raise capital under the Accredited Investor or Offering Memorandum exemptions. In the NCFA’s view, this warrants further analysis and changes to the existing regime.

The U.K. has a more innovative risk-based regulatory approach that is acknowledged to be world class and is highly adaptive to emerging technologies. NCFA strongly encourages Canadian regulators to study its approach.  The U.K. also has assumed a leadership role with incentives and funding to support early market traction and education.  In the U.K., crowdfunding activity continues to flourish, representing 25% of all equity deals announced in 2016.

The U.S. has also made significant progress with 134,000 small businesses benefiting from crowdfunding in 2016 (some of which are Canadian) versus only 7,450 in Canada.  In the U.S. there is an ongoing effort to fix bugs and improve regulation with a focus on protecting investors and providing improved opportunities for smaller entrepreneurs and investors to generate wealth (e.g. “H.R. 4855 Bill “Fix Crowdfunding Act” passed by the House on July 6th, 2016).

While NCFA has participated in numerous key stakeholder fintech consultations with a wide range of regulatory and competition agencies such as the MoF, BCSC, OSC and the Competition Bureau there is:

"Urgent need for regulatory change that must be addressed from the top down to ensure these issues have a political champion with the mandate to reduce critical barriers that limit economic growth and Canada's ability for fintech innovations and peer to peer distributed technologies to be globally competitive.", said Craig Asano, CEO, NCFA Canada.

Thanks to the NCFA internal working committee on regulations and governance, lead by NCFA Advisor, Robin Ford and the numerous individuals and companies that participated to prepare the submission, and/or participate in various meetings with government agencies, such as the MoF, BCSC, OSC and Competition Bureau across the country to foster Canadian fintech competitiveness and help reduce barriers for both new entrants and operators looking to scale and remain competitive with international trends.

"The current regulatory approach to crowdfunding is not working. We are sending our innovators and entrepreneurs to the US for capital! Regulators, governments, and other stakeholders must collaborate on a more risk-based and flexible approach to this rapidly evolving sector while also recognizing that start-ups and scale-ups need a helping hand to unleash their economic potential" -- Robin Ford, NCFA Advisor and Regulations and Governance Committee Lead

 

Meeting with the Ontario Ministry of Finance

On October 20, NCFA met with with Ontario's MoF to discuss ways to enhance access to capital (esp. for small businesses), stimulate investment and improve competitiveness in line with international fintech trends & distributed technologies impacting Crowdfinance, P2P, Blockchain ICOs, Altfi and global digital marketplaces.

Call to Action:

  1. Work harder to harmonize and reduce unjustified regulatory burden:   We strongly encourage the Ontario government, and the OSC, to work smarter (and harder) to streamline regulation across the country, reduce undue burdens that undermine cost effective capital formation for young companies (and that bear no relation to the risks presented by crowdfunding), and provide the required resources and support to encourage the crowdfunding sector and to improve Ontario’s competitiveness.
  2. Canada (Ontario) Needs a political champion to promote regulatory change:   Industry needs to garnish support from the Ontario MoF to champion the proposed regulatory changes deemed the highest priorities for change based on data/evidence, consensus from wide stakeholder consultations and comparative analysis of Canadian markets with international jurisdictions such as the UK and the US.
  3. Address urgent pressing challenges and implement NCFA's proposed specific regulatory changes:  such as lack of harmonization and mutual recognition, overly prescriptive rules (vs. risk/principles based regulatory approach), full service Sandbox with cohorts etc (vs current concierge service) and educational/resource gaps. 


Download the Ontario MoF Submission --> PDF here

 

The National Crowdfunding Association of Canada (NCFA Canada) is a cross-Canada non-profit actively engaged with both investment and social crowdfunding, blockchain ICO, alternative finance, fintech, P2P and online investing stakeholders across the country.  NCFA Canada provides education, research, leadership, support, and networking opportunities to over 1600+ members and works closely with industry, government, academia, community and eco-system partners and affiliates to create a vibrant and innovative online financing industry in Canada.  Join Us!  Learn more About Us or visit ncfacanada.org.

[VanFUNDING 2017, NOV 28]: Blockchain Fintech Conference + RegTech Hackathon (Vancouver)

NCFA Canada | Team #VF2017 | Oct 5, 2017

VANCOUVER, BC – October 5, 2017 – In less than two months, the National Crowdfunding Association of Canada (NCFA) will be hosting the 3rd annual VanFUNDING 2017, an immersive full day financial innovation forum and premier hackathon on Nov 28 in downtown Vancouver at SFU's Morris J Wosk Centre for Dialogue.

VanFUNDING 2017 is the leading Blockchain and Fintech educational conference dedicated to igniting online and alternative finance markets in Canada providing opportunities for startups and scaleups seeking to accelerate access to private capital markets, investors, and partners to expand their networks.  In addition to prime networking and leading educational series, the conference is expanding to include a 1 day hackathon to provide opportunities for Blockchain RegTech and Fintech startups (stealth) seeking business and technical mentorship, partners, and opportunities for investment in a 'business concept' sprint with winning companies pitching to prominent judges for feedback and prizes.

The 2017 agenda covers the hottest topics from Blockchain smart contracts and Initial Coin Offerings (ICOs) to the latest developments, emerging regulations, new business models and opportunities in PeerToPeer (P2P) crowdfinance, fintech, alternative finance, cryptocurrencies, artificial intelligence applications, and global financial marketplaces.

Looking for massive disruption and globally expanding markets?

'Crowdsales', Initial Coin Offerings (ICOs) and tokens represent the next generation of Crowdfinance and P2P online capital and community aggregation having raised in excess of $1 billion in the first half of 2017. ICOs are fully digital offers that are designed and sold using the protocols of smart contract technology inherent on public blockchains such as Ethereum that are quickly evolving.  With new crowdfunding regulations and an explosion of blockchain technology and initial coin offerings powering cryptoeconomics and  continued strong investor appetite for innovative fintech companies, 2017 is a new wave of financial innovation and tipping point full of opportunity as markets coalesce globally for a piece of the action, however with new potential and growth comes new challenges and risks.

VanFUNDING 2017 will feature a prominent keynote, 'Stories from the Edge', leading start-ups and industry participant experts in a unique 'UN-style' venue selected to promote interactive dialogue and discussion.  Combined with workshops and a 'business concept' hackathon there are opportunities for the entire venture funding ecosystem from companies to policy makers and start-ups to enterprise.  Other vital capital innovation topics will cover international developments, perk/rewards, lending, equity, royalty, market provisioning and infrastructure; investor marketing, leadership culture, cyber security and legal and financial considerations.

Get involved with VanFUNDING 2017! 

  • Are you a leading financial innovator, investor or a blockchain rock star? Apply to speak here; or
  • Build your brand’s profile, gain access and help shape the industry (view Partnership Opportunities); or
  • Help make the event day outstanding, apply to volunteer here; or
  • Media passes are available for accredited media representatives.

Hurray!  Early Discount Registration Until NOV 8 (Save 30%)!

Visit the VanFUNDING 2017 conference website to learn more.

vanfunding.ca

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

For more information, please contact:

Media Contact:

Craig Asano
Executive Director
casano@ncfacanada.org
416 618 0254
@NCFACanada

David Lucatch, CEO, Pegasus Fintech, Inc. Joins National Crowdfunding Association of Canada’s Advisory Group

NCFA Canada | Craig Asano | Sept 26, 2017

David Lucatch, Advisor

TORONTO, SEP 26, 2017 – The National Crowdfunding Association of Canada (NCFA) today announced that David Lucatch, Founder and CEO of Pegasus Fintech, Inc., has joined the Association`s growing Advisory Group to advise on the areas of fintech, blockchain and cryptocurrency.

David Lucatch – Founder and CEO, Pegasus Fintech, Inc.

Staring his career at the emergence of desktop publishing in the mid 1980’s and as an early Internet adopter, David has spent more than 30 years in the international marketing arena and over 20 years of that developing online business concepts and technologies and taking them to market.  David has held senior management posts and directorships at both private and public media and technology firms. Throughout his business career he has been an active supporter of numerous organizations and has been recognized and awarded internationally for his service and community support activities.  Through his finance and related support activities, David has been instrumental in capital formation programs for start-ups, technology, online, digital engagement and integrated marketing initiatives.

David Lucatch is a graduate of the University of Toronto, (Commerce and Economics) and an Arbor Award recipient.  As an active entrepreneur in the global Internet arena since 1995, David led the development of the first online payment processing gateway for Canadian eCommerce transactions as well as teams in the development of global technology patents.  Mr. Lucatch has been active as an advisor, board member and as part of leadership teams in private, institutional and public companies in North America.  He also served as an inaugural member of the Ontario Securities Commission SME Committee.

This year, David embarked on his latest business endeavor creating Crowdgener Inc. and its sister company Pegasus Fintech, Inc.  Both companies are positioned to support founders and emerging companies in their efforts to preserve long-term ownership and promote growth opportunities through crowd based funding programs, including the issuance of regulatory compliant cryptocurrency.  David is the founder of Pegasus Fintech, Inc., an enterprise that focuses on supporting innovative solutions in the Financial Services, Technology, Blockchain and Cryptocurrency communities.

“I am very honoured to join the NCFA and its Advisory group.  The proliferation of crowd investment and social endeavors, in all its variations, continues to gain global traction at an accelerated pace.  The NCFA offers its members and the community an opportunity to be heard and participate in educational, research, leadership, and development networking opportunities to remain at the forefront of areas like blockchain and regulatory compliant cryptocurrency programs, which is Pegasus' area of focus and expertise.” – David Lucatch, Founder, Pegasus Fintech, Inc.

“We welcome the vast experience that David brings to the NCFA advisory group.  As more and more companies and investors learn about the expanding programs and fintech infrastructure that is being built in Canada, the barriers to capital innovation are being reduced, and the spirit of new commercial economies are being sewn with an outlook to the future.” – Craig Asano, Founder, NCFA Canada

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About National Crowdfunding Association of Canada

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

About Pegasus Fintech, Inc.

Pegasus Fintech, Inc. focuses on supporting innovative solutions in the Financial Services, Technology, Blockchain and Cryptocurrency communities.  Pegasus has developed a full-service process for assisting organizations who want to do an Initial Coin Offering (ICO).  Together with our team of highly skilled industry professionals and partners we create, with our clients, the necessary business, legal, accounting, technology development, capital and funding strategies, whitepapers, roadmaps, marketing and sales processes to deploy successful and compliant ICOs.  Pegasus also has created an integrated network platform, called the Pegasus Matrix, supporting interactivity through Pegasus supported ICO use cases.  This provides investors and Token holders the ability to use any Token within the Pegasus Matrix and to facilitate market liquidity.  For more information, please visit:  pegasusfintech.com

MEDIA CONTACT:
Craig Asano
Founder / CEO, NCFA Canada
416 618 0254
casano@ncfacanada.org

David Lucatch
Founder / CEO, Pegasus Fintech, Inc.
pegasusfintech.com

David Lucatch, Advisor

David Lucatch

David Lucatch

Serial Entrepreneur, Marketer, Startup Evangelist, Investor & Mentor

David is the Chief Investment Officer of TheBlock, the International Chamber of Virtual Assets, centered in Dubai, focusing his efforts on the intersection of investors and amazing startups. David is also the principal of The Pegasus Fintech Group, a global family office dedicated to the success of highly engaging start ups and enterprises across multiple industry vertical, with a focus on the transition to Web3 and tokenisation.

As a serial entrepreneur, David has over 40 years of experience in the international marketing arena developing online businesses and technologies and taking them to market privately, through the public listing process in Canada, the US, and Europe, as well as investing and mentoring Web3 companies.

As early Internet pioneer, David was actively involved in the emergence of eCommerce technology in Web1, leading the team that developed the original eCommerce gateway technology for online payment and digital banking in Canada. During the Web2 adoption cycle, David focused on media, entertainment, and Artificial Intelligence in combination with machine learning, creating an AI and ML powered LLM platform with cross social messaging engagement used by over 200 million people globally. Today, in Web3, David’s focus is on the intersection of blockchain technologies with marketing, digital identity, Artificial Intelligence, and the next generation of user engagement.

David is a graduate and Arbor Award recipient from the University of Toronto and is a contributing writer and featured event, conference, and podcast speaker. David has received various awards for his contribution to community service, business and industry, and was an inaugural member of the Ontario Securities Commission SME Committee, a member of the Forbes Business Counsel, and of the Rolling Stone Culture Counsel. David is a NY Emmy Nominated Executive Producer for Special Programming with the YES Network, and part of a team that holds a Guinness World Record in the online space.

LinkedIn Profile for David Lucatch

 

Back to Advisors

 


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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Sherwood Neiss, General Partner, Crowdfund Capital Advisors LLC, Joins National Crowdfunding Association of Canada’s Advisory Group

NCFA Canada | Craig Asano | Aug 1, 2017

Sherwood Neiss, Advisor, Global Crowdfunding Markets

TORONTO, AUG 1, 2017 – The National Crowdfunding Association of Canada (NCFA) today announced that Sherwood (Woodie) Neiss, General Partner at Crowdfund Capital Advisors LLC, has joined the Association as Advisor, Global Crowdfunding Markets.

Mr. Sherwood Neiss co-authored the “Crowdfunding Exemption Framework” which became the basis of Title III of the U.S. JOBS Act to legalize equity and lending-based crowdfunding. He is in the forefront of the crowdfunding industry, as the co-founder of Crowdfund Capital Advisors (“CCA”). CCA is a consulting firm serving certain governments and multi-lateral organizations including Inter-American Development Bank, the World Bank, governments of Chile, Malaysia, Israel, and the UAE, professional investors, crowdfunding professionals and the entrepreneurial community. Mr. Neiss co-authored the World Bank’s research report “Crowdfunding’s Potential for the Developing World” as well as the MIF report “Creating a Crowdfunding Ecosystem in Chile.” Mr. Neiss serves on the advisory boards of several crowdfunding companies. He is a co-founder and former-board member of the Crowdfunding Professional Association and the Crowdfunding Intermediary Regulatory Advocates. Mr. Neiss was selected as a recipient of the Crowdfunding Visionary Award. VentureBeat listed Mr. Neiss as one of the most influential thought leaders in crowdfunding. Prior to CCA, Mr. Neiss co-founded FLAVORx, Inc., acted as its chief financial officer, won Ernst & Young’s Entrepreneur of the Year award, as well as the Inc. 500 award three years in a row.

“As we’ve seen with the intersection of the Web with many other industries, it isn’t a matter of IF Securities-based Crowdfunding and online finance comes online but when. Now that data is available to start showing the logical flow of capital from investors to promising community-based businesses via securities that match both entrepreneur and investor needs, governments are playing fast follower. There will be a time when online fundraising is the norm and it won’t be a matter of decades but years. The time is now for Canada to join the rest of the world.” -- Sherwood Neiss, General Partner, Crowdfund Capital Advisors LLC

“Sherwood (AKA Woodie) has been coined the grandfather of the co-investing movement in the U.S. for a reason - he wrote the book and genuinely believes in the sustainable impact and power that online crowdfunding can make to the bottom line of companies, investors and government the world over.  He understands that to tap the benefits of crowdfunding for all, there needs to be greater education, investor confidence (data standards), tax incentives and wide public and government support.  We welcome Sherwood's vast experience in Canada and join his efforts to make crowdfunding a tangible and equitable economic growth engine for local communities which transcends 'for profit only mentality' and is opening up doors for start-ups and seasoned businesses in support of the entrepreneurial spirit and new economy.” -- Craig Asano, Executive Director, NCFA Canada

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About National Crowdfunding Association of Canada

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. For more information please visit: ncfacanada.org.

MEDIA CONTACT:
Craig Asano
casano@ncfacanada.org
416 618 0254

CALLING ALL COMPANIES, INVESTORS & FUNDING PLATFORMS! Help Define the Future of Alternative Finance Crowdfunding in Canada

NCFA Canada (About Us) | June 22, 2017

This is a vital time for the alternative finance crowdfunding sector in Canada.

The crowdfunding sector in Canada offers tremendous potential to innovate and improve capital formation, storage and the distribution of resources by leveraging technology to unlock transactional inefficiencies, provide more liquidity and help small businesses, the backbone of the Canadian economy, to commercialize and globally compete in modern digital times.  While market volumes grew 48% from 2013-2015 and is predicted to reach $190 million in 2016 (download 2016 NCFA report), Canadian markets continue to fall behind international competitors due to market stifling regulations (eg., US $35.2 billion in 2016, Chicago-Booth/Cambridge report).

Your voice is more critical than ever before! 

  • All survey participants will be entered into a draw to receive a $100 gift card of their choice plus $25 Uber promo card for their time.
  • Are you an innovative company raising seed or growth capital? Have you considered raising your next financing in alternative finance markets? What are the most important decision drivers?
  • As a retail or accredited investor, how many deals have you backed in the past 12 months? What’s working and what’s not?

Please take 5min and show support for capital innovation, SME growth and new investment opportunities in alternative finance markets:

  • Your confidential responses will form the basis for NCFAs annual 2017 report to be published later this fall
  • Armed with this data, we seek to promote nationwide growth within the industry and create a persuasive impact on allowing more flexible government regulations and educational support for Alternative Finance Crowdfunding in Canada.  Share your voice now

“We are on the cusp of a new, potentially revolutionary era in consumer and SME finance that harnesses the wisdom of the crowd and its power to effect huge change in the financial sector.”  NCFA Canada

Take the survey now:   http://bit.ly/2perd2N

*Only Open until June 30

We highly appreciate your time and thank for participating in the survey!  Questions?  info@ncfacanada.org.

Sincerely

Craig Asano
Founding Executive Director
NCFA Canada
(416) 618-0254

 

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.

Jason A. Saltzman, Partner, Gowling WLG (Canada) LLP, Joins National Crowdfunding Association of Canada’s Advisory Group

NCFA Canada | Craig Asano | Jun 21, 2017

Jason Saltzman, Advisor, Securities and Financings

TORONTO, JUN 21, 2017 – The National Crowdfunding Association of Canada (NCFA) today announced that Jason A. Saltzman, Partner at Gowling WLG (Canada) LLP, has joined the Association as Advisor, Securities and Financings.

Jason is a partner in Gowling WLG’s Toronto office practising in corporate finance and securities law, with an emphasis on securities offerings, mergers and acquisitions, private equity and venture capital transactions and regulatory compliance matters.  He assists issuers, investment dealers, investment portals and institutional and private investors on complex equity and debt financing transactions, ranging from start-up investments, venture capital and private equity investments, to larger public offerings and project finance.

Jason has taken numerous companies public on the TSX, TSX Venture Exchange and Canadian Securities Exchange by IPO, reverse takeover, capital pool transactions and direct listings. He also advises securities dealers, advisers, investment fund managers and other market participants in connection with their registration and compliance issues.  Jason served two terms on the Ontario Securities Commission’s Small and Medium Enterprises Committee and has been very active in building an alternative finance practice by focusing on fin-tech, crowdfinance and other disruptive models such as online investment platforms, peer-to-peer lending and robo-advising. He has become known as a thought leader in this innovative area and is working closely with other Gowling WLG professionals as part of a fully-integrated fin tech legal practice group.

 “Crowdfunding is a phenomenon and not a fad. Issuers and securities dealers are already integrating this channel into their overall finance strategy and are using it as a way to better connect and identify with their target markets. The advent of specialized investment platforms, innovative technologies and evolving approaches for the regulation of online investment portals (including new securities law exemptions and OSC's Launch Pad), have set the nascent crowdfunding industry on the right path for the future.” -- Jason Saltzman, Partner, Gowling WLG (Canada) LLP

“Jason not only understands the potential impact of crowdfunding and fintech innovation on alternative finance markets but been a huge supporter of NCFA since the early days.  He’s a leading securities lawyer in the sector with a long list of accolades and deep experience working with registration, compliance and complex financings full stop.  On behalf of the industry we thank Jason for his commitment and continued support, and are thrilled of his participation in the Association’s Advisory group.”  -- Craig Asano, Executive Director, NCFA Canada

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About National Crowdfunding Association of Canada

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. For more information please visit: ncfacanada.org.

MEDIA CONTACT:
Craig Asano
casano@ncfacanada.org
416 618 0254