Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Category Archives: Online Funding / Investing Portals
Interview: Canada’s P2P Small Business Marketplace, Lending Loop, Gains Traction
NCFA Canada About Us | Craig Asano | Nov 1, 2015
In September 2015, Lending Loop, a P2P lending marketplace for small businesses seeking up to $500,000 CAD in capital launched and is currently open for business.
With the tag line 'A better way to borrow, a Smarter way to lend', Lending Loop, led by Cato Pastoll, CEO/Co-founder, and his Co-founding partner and CTO, Brandon Vlaar, are early entrants into the Canadian peer to peer lending or debt-based crowdfunding arena, and are experiencing a lot of traction.
While P2P lending is a thriving industry in the UK and US, and is proving to be the go to option for many small businesses seeking access to debt capital after being unable to secure loans from traditional financial institutions or unwilling to pay lofty interest rates on credit cards or to alternative lenders with inflated costs, Canada is just getting started.
Related: Lending Loop Launches Online Marketplace for Canadians to Lend Directly to Main Street
To learn more about Lending Loop's model and the business processes, resources and types of loan products and investments available on this new marketplace, we sat down with Cato Pastoll for an interview that lasted approx 34 minutes in length.
Small business P2P lending marketplaces is definitely a growing opportunity in Canada, and if you are a small business or prospective lender interested in direct investments then you should definitely check them out. To learn more, we encourage you to visit www.lendingloop.ca to ask any questions that you may have.
Links:
Lending Loop small business loan marketplace
Too high-risk for the bank? Try these alternative fundraising options
Alternative lending bubbles up into Canadian mainstream, gains traction among entrepreneurs
Understanding Alternative Finance: The UK Alternative Finance Industry Report 2014
The National Crowdfunding Association of Canada is the leading and only nationally organized non-profit working with over 1300 social and investment stakeholders across the country, and the national voice of an industry that is fast becoming an integral part of the start-up financing ecosystem. Learn more About Us or visit ncfacanada.org.
Canada’s first crowdfunded real estate deal closes
Property Biz Canada by Paul Brent | October 30, 2015
Crowdfunding to raise equity for real estate development is well underway in the U.S. Not so much in Canada until this week.
Nexus Crowd - TerracapNexusCrowd Inc. announced Wednesday it has closed the country’s first online investment offering for commercial real estate.
The Toronto-based business raised $500,000 from “10s” of accredited investors to be partial backers of a $100-million retail mall near the northeast corner of Dixie and Dundas in Mississauga, Ont.
Hitesh Rathod, co-founder and CEO of NexusCrowd, hit upon crowdfunding for real estate a few years ago while working on equity financing for an agriculture company through the private markets.
“I quickly realized how difficult it is to raise capital from the equity-raising side and as an investor to get access to really good deals,” he said.
See also: Get the 2015 Crowdfunding for Real Estate Industry Report
“I started looking into the crowdfunding space and thought it was a great evolution for alternative financing.”
Mitigating risk
Putting on his investor hat, Rathod, who has an investment banking background with Mackie Research Capital and Canaccord Genuity Inc. (CF-T), sought to create a funding platform that would not load up small investors with big risks.
“How can I mitigate a lot of the risks that are involved in private market investing and crowdfunding specifically?” he explained.
Related: Property Crowdfunding Comes to Canada With Toronto Mall Project
NexusCrowd’s solution was to partner with institutional investors “who really just do this for a living, where they are sourcing, structuring, monitoring and reporting on deals.”
In the U.S., crowdfunding has raised more than US$208 million over the last two years, according to a Reuters report this week.
The way it works
NexusCrowd has created a limited partnership into which the individual investors’ money was placed and that partnership invested directly in the development project.
“From the perspective of our partners or a company or a project that we are funding, there is only one investor so it really does streamline the process for our institutional partners. There is not a lot of work that goes into it for them.”
The appeal for investors? “They get access to deals they never got to see before.”
Related: The Draw of Real Estate Crowdfunding
The NexusCrowd founder was referring to the equity company’s low-low minimum investment of $10,000. That compares favourably to the $100,000 to $150,000 demanded from accredited investors in typical real estate equity investments, he said.
NexusCrowd, which obtained its exempt market dealer license from the Ontario Securities Commission in July, had examined “north of five” potential real estate investments before it decided to go ahead with the Mississauga investment.
“Each developer or private equity firm will show us all the transactions that they are going to make and we only pick the ones we believe will be most attractive to our investors before posting them,” said Aris Economopoulos, vice-president of operations with the crowdfunding company.
“In addition to that, we put both the developer and the individual investment opportunity through a due diligence process.
“This ensures that investors are getting a curated and vetted investment opportunity as opposed to just anybody being able to post an investment opportunity on the platform.”
Continue to the full article --> here
The National Crowdfunding Association of Canada is the leading and only nationally organized non-profit working with over 1300 social and investment stakeholders across the country, and the national voice of an industry that is fast becoming an integral part of the start-up financing ecosystem. Learn more About Us or visit ncfacanada.org.
NexusCrowd Closes Online Investment Offering for Canadian Real Estate Project
Crowdfund Insider | Samantha Hurst | Oct 27, 2015
On Tuesday, NexusCrowd Inc. announced that it has closed Canada’s first online investment offering for commercial real estate. The issue was quickly sold out with significant investor demand across the country and internationally. The project provided accredited investors with the opportunity to participate in the development of a $100 million retail mall in the Greater Toronto Area (GTA).
See:
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Property Crowdfunding Comes to Canada With Toronto Mall Project
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Get the 2015 Crowdfunding for Real Estate Industry Report… and Pre-order the 2015 Crowdfunding Industry Report
NexusCrowd is considered the first investment platform in Canada to provide accredited investors with exclusive access to co-invest alongside institutional investors in deals that have reached at least 50% of their funding target. It also provides private equity institutions with a “frictionless” way to access additional capital.
Hitesh Rathod, co-founder and CEO of NexusCrowd, commented:
“We are pleased with the strong investor interest in this initial project. This deal demonstrates the efficiency of our platform, and we look forward to providing investors with exclusive access to many more high-quality investment opportunities, that were previously inaccessible to them.”
NexusCrowd’s first investment opportunity enabled investors to participate in the development of a $100 million retail mall located on a 5.7 acre site in Mississauga, Ontario. The institutional partner, Terracap Investments Inc., has over 30 years of commercial real estate development experience across North America and expects to finish construction of the project by the end of 2017. The 238,000 square foot two-storey mall will be anchored by a tier 1 bank and a large supermarket.
Continue to the full article --> here
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 1100+ 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 About Us or visit ncfacanada.org.
2,000 Global Crowdfunding Sites to Choose from by 2016: Top 5 Growth Indicators
The Huffington Post by David Drake | October 23, 2015
Crowdfunding is growing at a tremendous rate and shaping the innovation of every S.P.P.I.C.E. (service, product, project, investment, cause or experience), causing a shift in the role of financial institutions around the globe and influencing government policies and market trends.
In the UK alone, the Nesta Report disclosed that the alternative finance market which includes Crowdfunding was expected to grow by £1.74 billion (US$1.99 billion). This was based on the 150 percent growth experienced by the market from 2012 to 2013, and 161 percent from 2013 to 2014.
The Nesta Report also highlighted that the UK alternative finance that includes crowdfunding is estimated to have provided working capital in 2014 for 7,189 small and medium enterprises, equivalent to 2.4 percent of bank lending to businesses.
In the United States, real estate crowdfunding emerged as one successful niche in the crowdfunding landscape. The 2015 Times Realty News Real Estate Crowdfunding Report cited that there are more than 140 real estate crowdfunding platforms in the US, with funds raised online placed at US$1 billion in 2014, and is expected to climb to US$2.57 billion at the end of this year.
In 2016, the number of crowdfunding platforms is likely to hit the 2000 mark due to the following reasons:
1. Growth Rate of Crowdfunding Platforms since 2012
There were more than 700 crowdfunding platforms in the world in 2012. Of this number, 191 crowdfunding platforms were established in the United States that year. The Soho Loft News, which is an Alternative Finance news and info site, have tracked over 600 of the more than 1250 online crowdfunding platforms today globally and adding to the list daily.
The number of crowdfunding platforms in other parts of the world is also growing exponentially. In Europe, the number of crowdfunding platforms has also gone up.
View: 2015 Canadian Crowdfunding Directory
In the real estate financing industry, the 2014 TRN Real Estate Crowdfunding Report highlighted more than 60 real estate crowdfunding platforms that year worldwide, which was worth US$1 billion by year end. This number has now increased to over 230 platforms in 2015, and currently being tracked by Times Realty News.
If this trend continues, there will be over 2000 crowdfunding platforms across the globe by early 2016.
2. Easing of Regulatory Environment
More investors are now able to make private investments across the globe as the regulatory environment becomes favorable.
In the United States for instance, changes in legislation has opened up the space to non-accredited investors and allowed issuing companies to state publicly the plans they have for raising funds. The approval of Title IV of Regulation A+ under the Jumpstart Our Business Startups (JOBS) Act is likely to spur development of more crowdfunding platforms. Under Regulation A+, accredited and non-accredited investors can participate in public offerings, a move that expanded the investor pool from which entrepreneurs can raise capital. This regulation also raised the maximum crowdfunding ceiling to 50 million dollars and removed the requirement for state compliance.
See also: Equity crowdfunding market no longer the preserve of start-ups
Italy was the first country to enact Law 221/2012, the law on equity crowdfunding in 2012 that allows innovative startup companies to raise funds online. CONSOB, Italy's equivalent to the US SEC, released regulation no. 18592 on June 2013. This consists of rules in implementing the law which covers the creation of platforms, requirements for their registration, rules of conduct and offerings and more. However, the equity crowdfunding market is not moving that much because of intrinsic limitations within the business environment and existing regulations. Not to be left behind in the crowdfunding space, Italy in its Law Decree no. 3, allowed Undertakings for Collective Investment (UCI) and venture capital (VC) companies to raise capital online for any specific project, provided they invest in startups and in SMEs engaged in innovation.
Austria, on the other hand, has recently passed its crowdfunding law. In this new law, only a simplified prospectus is mandatory for issue volume between EUR 1.5 million and EUR 5 million (no longer EUR 250,000). The complete prospectus will now be required only for issue volume of EUR 5 million or more. An individual can invest up to EUR 5,000 per project, but this can be doubled if his or her net monthly earnings reach EUR 2,500. Investors can withdraw within two weeks, just like in its Consumer Protection Law. Issuers can only raise EUR 5 million in capital over the next 7 years, less the amounts already paid back to investors. The company is required to issue a capital market prospectus if this is exceeded.
View: Alternative Finance Update: Key Crowdfunding Trends
3. Changes in Investor Behavior
In the Democratising Finance report, behavior changes among investors is an important factor fueling the growth of the alternative finance industry, a concept that brings crowdfunding and peer-to-peer (P2P) lending together. Based on this report, there are changes in the demographics of people who use P2P lending and crowdfunding, with boomers being 10 times less likely to make use of P2P lending than millennials. The millennials opt for mobile and online solutions that offer limitless and faster user interactions. This new breed of investors finds the growing interaction and openness that crowdfunding platforms offer in investment processes more appealing. This will drive the need for crowdfunding platforms to tap the huge population of millennials.
4. Technological Innovations
Technological innovations are occurring rapidly in alternative finance. When it started, crowdfunding was operating as rewards-based and donation-based fundraising options. Today, crowdfunding has evolved and expanded operations as debt and equity funding options. Additional tools such as data providers and analytics are evolving to complement the crowdfunding sector. There is a growing trend of integrating social media in crowdfunding platforms where investors and issuers get incentives for marketing their funding campaigns online. This results in a network of investors and issuers enhancing the ability of crowdfunding platforms to attract customers, sometimes turning their customers into investors or crowdfunders.
See: Get the Leading Global Industry 2015 Crowdfunding Report (member discount)
Many of these innovations were spurred by the online automation and streamlining of the underwriting and financing of the real estate industry. This was reflected on the increase of real estate crowdfunding platforms that is being tracked by Times Realty News: From a hundred real estate crowdfunding platforms in January 2015 it rose to more than 230 platforms globally by summer 2015.
All these innovations in technology will drive the growth of crowdfunding platforms in 2016. The automation in the space indicates that an additional 700 will join this list by next year.
Continue to the full article --> here
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 1100+ 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 About Us or visit ncfacanada.org.
Your Input Required: 2015 Canadian Crowdfunding Platform Survey
NCFA Canada | October 14, 2015
Crowdfunding and alternative finance markets continue to grow rapidly playing a significant role in mobilizing capital and resources to help launch and scale new ventures, social enterprises, small businesses and high growth SMEs in Canada.
The National Crowdfunding Association of Canada (NCFA) is conducting its second survey of crowdfunding in Canada. The purpose of this survey is to form a basis for the NCFA annual report of crowdfunding market size, activity and growth in Canada from 2013 - 2015 (up to Q2).
Survey results will be released in early 2016 as the inaugural Canadian Crowdfunding Annual Report and will be distributed freely to all NCFA members, industry practitioners, survey participants, government agencies, financial regulators, business communities and major media outlets about the quickly emerging Canadian crowdfunding industry.
Survey Deadline Extended (LAST CHANCE TO COMPLETE)
Please take 20 minutes to complete this survey before November 30, 2015 (Survey deadline extended to January 31, 2016) and help advance the growth of this industry. All survey participants will be entered into a draw to WIN a $250 gift card of their choice and also have their platform business logo included in the study as a recognized participant.
Participation: This survey is only open to Canadian crowdfunding platforms (or funding portals with some form of physical presence in Canada including equity, rewards, lending/debt, donation or hybrid models) who actively work with Canadian projects (issuers) and investors (contributors).
Survey Deadline: Please complete this survey by January 31, 2016. (Extended: LAST CHANCE TO COMPLETE)
>> Take the 2015 Canadian Crowdfunding Platform Survey Now <<
Results from the 2013 NCFA Canada Survey:
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 1100+ 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 About Us or visit ncfacanada.org.
Seedrs, KissKissBankBank Partner with ING on Crowdfunding “Fast Track”
Crowdfund Insider by JD Alois | October 14, 2015
ING Belgium has formed a partnership with two leading crowdfunding platforms. Seedrs, based in the UK, and KissKissBankBank, based in France, will power a fast-track process for clients looking to raise capital. In recognition of the fact that bank loans are not optimal for entrepreneurs and early stage companies, ING will now offer equity crowdfunding on Seedrs and rewards based crowdfunding on KissKissBankBank. This will allow SMEs to diversify sources of funding while engaging a much broader audience.
According to information provided by the bank, using the ING fast track procedure, will only take the entrepreneur a couple of clicks to get access to the selected platform. Seedrs and KissKissBankBank will then swiftly get in touch with the entrepreneur and give him a first indication on the suitability of the project for their platform and on the chances to succeed. The fast track procedure can save the entrepreneur significant time and effort. The process is designed to improve the entrepreneur’s chances on successfully completing his crowdfunding campaign. Across continental Europe there is a growing recognition that an equity culture must be fostered to help build a more innovative and dynamic pan-European economy. Crowdfunding is recognized as a much needed catalyst in this objective.
Related: Equity Crowdfunding Platform Seedrs Raises $15.6M To Launch In US
Jeff Lynn, co-founder and CEO of Seedrs, said he was quite excited to work with the global bank and Belgian business community.
“To our knowledge this is the first time that a well-respected, global financial institution like ING has partnered with a leading international equity crowdfunding platform like Seedrs, and we think this relationship is very encouraging for the future of business finance. We’re proud to have been chosen as ING’s partner for this venture, and we see our selection as further validation of our “equity crowdfunding done properly” approach,” stated Lynn.
Erik Van Den Eynden, Head of Midcorporates & Institutionals ING Belgium, viewed the partnership as allowing his bank to aid customers to “keep a step ahead in their business”.
“Our partnership with KissKissBankBank and Seedrs is an example. Our aim is to strengthen our customer’s project and to support them in the growth of their business. Our role is therefore much larger than that of your classic lender: we are a collaborative partner and advisor.”
Related: New online lenders make it easier to get small businesses loans
It is a fact that entrepreneurs who have access to several funding sources automatically find themselves in a more comfortable financial position. When assessing a loan application, banks naturally also look at the makeup of the company’s resources. Through crowdfunding, entrepreneurs can therefore reinforce their business as well as their position when applying for a loan. ING benefits by maintaining the relationship with the SME and may be well positioned to provide debt financing and other services going forward.
ING also recognizes that a benefit of crowdfunding is that it gives the entrepreneur a chance to estimate whether the market is ready for such products or services. The exposure to a broader audience of course also creates a good marketing opportunity for an enterprise.
View: The Future of Financial Services
ING states that a project will be assessed within two days at most whether or not the project is suitable for the respective platform and what the chances of success are. If the project receives a positive appraisal from the platform, the entrepreneur can immediately kick off his crowdfunding campaign, supported by the platform.
Continue to the full article --> here
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 1100+ 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 About Us or visit ncfacanada.org.
Lending Loop Launches Online Marketplace for Canadians to Lend Directly to Main Street
Marketwired | October 7, 2015
Lending Loop offers all Canadians a better way to borrow and a smarter way to lend
TORONTO, ONTARIO - Lending Loop has launched its Online Marketplace across the country to provide Canadians a better way to borrow and a smarter way to lend. Middle class Canadians can grow their personal wealth by lending to the small businesses at the heart of their community and across Canada.
Traditionally, Canadians have had little choice when it comes to investing their money. Purchasing stocks requires substantial capital, time and knowledge. Mutual funds make hard earned money less accessible. Bonds pay little in the way of interest and bank savings accounts yield even less.
"Today is a brand new day for Canadians and small businesses across the country," explains Lending Loop CEO, Cato Pastoll. "With as little as $50, Canadians can lend their money to the thriving local coffee shop that needs new equipment to grow or the farm around the corner requiring staff to develop a farm-to-home produce delivery program."
Lending Loop was founded by entrepreneurs Cato Pastoll and Brandon Vlaar who, after witnessing firsthand the difficulties their friends and loved ones experienced as small business owners dealing with big banks, realized the need for a new financial model for small business to have fast and easy access to the capital needed to grow in a global economy.
Lending Loop Offers Small Business the Chance to Compete
Although small businesses are unquestionably the backbone of the Canadian economy, the traditional lending model offered up by big banks often makes it difficult to access the capital they need to compete against global conglomerates and big-box stores.
Small and medium sized businesses employ nearly 90 per cent of Canadians working in the private sector and produce 40 per cent of the country's GDP. Yet many are rejected by traditional financial institutions when seeking financing because they don't fit the rigid lending requirements of big banks. Too often, this means their only recourse is to source alternative or private lenders who charge rates well in excess of 20 per cent.
Canadian-owned and developed Lending Loop is leveraging technology to make the financial sector work more effectively for all Canadians, and small businesses in particular. It is the first peer-to-peer lending platform in Canada, and offers small businesses a better way to borrow, with a quick and easy application, flexible repayment options and considerably lower interest rates than alternative lenders. By using Lending Loop to access the capital they need to grow their business and expand their market, small business will be able to compete and win.
Lending Loop's borrowers also have built-in advocates for their business - the lenders who want to see the company succeed because it helps their community and investment grow.
If you're a Canadian small business, join Lending Loop today for a better way to borrow. Apply here to get started today.
Lending Loop Brings Peer-to-Peer Lending to ALL Canadians
Lending Loop makes investing far more accessible to every Canadian by providing access to a new type of asset class: growing small businesses. Exposure to a brand new asset class allows Canadians to diversify beyond real estate and traditional public market investments.
Lending Loop makes it possible for Canadians to support the local businesses they love and support instead of putting their money into faceless corporations. Lending Loop makes lending more accessible and affordable for Canadians than ever before by allowing them to lend as little as $50 to a business. Lending Loop also makes it incredibly easy for any investor to build a healthy, diverse portfolio across a number of small businesses and industries.
To protect the hard earned money of lenders, Lending Loop uses an all or nothing funding model, where loans only come into effect if the borrower receives the full amount of their loan request in total pledges. Ensuring a project or business is fully funded maximizes the likelihood for the borrower to be in a positive position to repay lenders.
Lending Loop offers all Canadians a smarter way to lend. Sign up here to start lending in just a few easy steps.
For more information or to arrange an interview with a Lending Loop representative, please contact Ciara Dalziel.
CONTACT INFORMATION
Ciara Dalziel
Strategic Objectives
416-366-7735 x 237
ciara.dalziel@strategicobjectives.com
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 950+ 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 About Us or visit ncfacanada.org.
