Mahi Sall, Advisor, Fintech-Bank Partnerships, Payments and Financial Inclusivity
January 25th, 2023
Mahi Sall is the CEO & Founder of FinXpair, a Berlin-based strategic advisory boutique firm focu[...]
Category Archives: Venture Funding and Building
Sequoia Splits into Distinct Entities: Unraveling the Impact on Venture Capital Landscape
Forbes | Alex Konrad | Jun 6, 2023
Image: Unsplash/Sarah Brown
Venture capital’s biggest global brand is breaking up, with Sequoia’s China and India and Southeast Asia funds relaunching as new firms HongShan and Peak XV Partners.
- Sequoia Capital's Global Breakup:
- Venture capital heavyweight Sequoia Capital is splitting into three distinct entities, each targeting a specific geographic region. Sequoia Capital will focus on the U.S. and Europe, while the newly formed HongShan and Peak XV Partners will serve China and India/Southeast Asia respectively.
- This move could impact funding markets by adjusting the balance of power among global venture capital firms, potentially leading to a redistribution of capital and shifting the competitive landscape within the targeted regions.
See: Which Companies Were Affected by FTX’s Collapse?
- Increased Regional Autonomy:
- As separate entities, HongShan and Peak XV Partners will no longer share profits or back-office functions with Sequoia Capital. This autonomy should allow each firm to better align their strategies with their respective regional market dynamics, while mitigating conflicts and complexities tied to centralized operations.
- It may trigger a ripple effect in the funding landscape as other venture capital firms may consider similar operational adjustments for their own regional branches.
- Repositioning Amidst Changing Geopolitical Landscape:
- Although the Sequoia leaders deny geopolitical tensions as a catalyst for the breakup, the separation should allow each firm to navigate their regional geopolitical landscapes more independently.
- This could impact the funding channels by potentially reshaping investment strategies or preferences within the venture capital industry, possibly steering funding towards startups that align better with regional regulatory environments and geopolitical considerations.
See: House Passes Bills to Broaden ‘Accredited Investor’ Definition
Neil Shen:
Many Chinese entrepreneurs probably don’t even know how to spell Sequoia.
Singh:
From a customer’s point of view, you’re trying to buy technology from the company you think Sequoia anointed, that has the weight of Sequoia behind it, but now there are two of them and it’s confusing.
Continue to the full article --> here
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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House Passes Bills to Broaden ‘Accredited Investor’ Definition
U.S. Financial Services Committee | Jun 5, 2023
Expanding Investment Opportunities: The U.S. House of Representatives has approved seven bipartisan financial services bills aimed at strengthening public markets and boosting capital formation.
- Expanding the Accredited Investor Definition:
- Key among these is H.R. 835, the Fair Investment Opportunities for Professional Experts Act, which widens the definition of accredited investor.
- This is expected to increase the pool of potential investors for small businesses and emerging companies, especially minority entrepreneurs who frequently face challenges in securing funding.
- Other significant legislation includes H.R. 2608 and H.R. 2610, both sponsored by Chairman Patrick McHenry. These bills intend to improve the attractiveness of public markets for emerging growth companies by clarifying and extending financial reporting obligations under the JOBS Act of 2012. This could potentially streamline the process of initial public offerings (IPOs) or spin-offs, which in turn can drive efficiency and capital formation.
See: Improving the Regulatory Environment for Entrepreneurial Capital Formation: JOBS Act 4.0
- Increasing Access and Protection in Capital Markets:
- Legislation such as the Accredited Investor Definition Review Act (H.R. 1579) and the Senior Security Act of 2023 (H.R. 2593) demonstrates a dual commitment to opening up investment opportunities and safeguarding investor interests.
- While H.R. 1579 aims to broaden participation in economic growth by updating the list of certifications required to qualify as an accredited investor
- H.R. 2593 focuses on protecting senior investors from fraudulent activities in the capital markets.
- Accredited Investor Certification Exam: The House has passed another bill H.R. 2797 - The Equal Opportunity for All Investors Act of 2023 - which mandates the Securities and Exchange Commission to develop an accredited investor certification exam. Rep. Mike Flood, co-sponsor of the bill, believes that the definition of an accredited investor should not be based solely on wealth, but should also consider the knowledge and capabilities of investors.
Read: The Real Story of Access to Capital
- Opposition and Concerns:
- Not everyone supports the expansion of the accredited investor definition. Micah Hauptman, Director of Investor Protection for the Consumer Federation of America, expressed strong opposition to H.R. 835, arguing it might reduce protections for investors in the public markets. Likewise, Hugh Berkson, President of the Public Investors Advocate Bar Association, emphasized the need for oversight measures to protect retail investors from potential risks associated with expanded access to private securities.
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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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Tony Robbins: Who Are You in Business? Producer? Manager? Entrepreneur?
Tony Robbins LinkedIn Newsletter | Jun 1, 2023
Image: Unsplash/Brett Jordan
Each day life offers us the opportunity to GIVE (our passion, skills, time). To extend outside of ourselves, to contribute to something greater... And it determines WHO we are in business. Do you know what your gift is, my friend?
- Artist/Talent/Skilled Producer (someone with exceptional skill) that derives their energy by creating a product/service that LIGHTS up the customer:
- Most businesses are started by an artist, a talent, or skilled producer. They are the genesis of most grand ideas. A software developer, a fashion designer, someone who is incredible at negotiations...They bring passion and creativity.
- Artists are not naturally equipped to run a business. This isn’t to say that they CAN’T. On the contrary however their unique gift is in their skill. The logistics and nitty gritty of running a business can bog down their creative juices.
See: Life Isn’t Linear: Curveballs and Strikeouts
- Manager/Leader: LOVES to manage people and processes.
- People, systems, and making things more efficient; this is the Manager’s wheelhouse. They appreciate a product or service, but it’s not where they draw energy from. And because they’re not as attached to the product or service, they can make adjustments as needed. It's not their “baby” per se.
- They can approach tasks from a bird’s eye view, prioritize outcomes, and leverage outcomes based on the skillset of their team. But still, there’s another gift left to make it all come together...
- Entrepeneur/Risk Taker: The Entrepeneur garners energy from risk.
- Whereas the risk of starting your own business might be energy depleting for the Artist or Manager.
- Entrepreneurs are about economics. They can fall, lose money, and get back up again. The rollercoaster of entrepreneurship is a ride they enjoy.
- Many of you reading this will identify as an entrepreneur. It’s important to do a gut check. You can have an entrepreneurial muscle, but it doesn’t necessarily mean it’s in your core. There’s a difference!
See: Tony Robbins: The Cure for Quiet Quitting
One gift isn’t better than the other, they all serve to come together and make a business thrive. And one doesn’t mean more financial success than the other...
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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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Elon Musk’s Neuralink Announces FDA Approval for Human Trials of Its Brain Implant Technology
CBC News | May 26, 2023
Image: Freepik/jcomp
Brain implant company says U.S. regulator approval is 'important first step' to launching their technology
- FDA Greenlights Neuralink for Human Trials:
- Neuralink, the innovative brain-implant company led by serial entrepreneur Elon Musk, announced that it has secured approval from U.S. regulators to initiate testing its pioneering device in human subjects.
- This marks a significant milestone for the tech giant, opening up unprecedented possibilities in the realm of neurotechnology.
- Neuralink's Promise for Treating Brain Disorders and Injuries: The device, a revolutionary brain-computer interface about the size of a large coin, is designed to be implanted in the skull, potentially restoring vision and improving motor control in patients.
- Musk's vision extends to bridging signals from the brain to Neuralink devices in the spinal cord, which could offer transformative treatment options for severe neurological conditions.
See: 16z: 2023 State of Crypto (and Index)
- The Beginning of a New Era in Neurotech:
- Despite the remarkable promise of this technology, it's still considered an "investigational device" and its safety and efficacy are yet to be fully established.
- The approval for clinical trials signifies the beginning of an exciting era in neurotechnology, promising unprecedented advancements in understanding and treating brain-related health conditions.
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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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Solana Introduces AI Capabilities to Enhance User Experience and Adoption
The Defiant | Samuel Haig | May 24, 2023
In a push to revive its downtrend and amplify adoption, Solana, a Layer 1 blockchain noted for quick, low-cost transactions, launched a ChatGPT plugin that enhances its user interface.
- Solana AI ChatGPT plugin:
- The plugin facilitates various actions including NFT purchasing, token transfers, and on-chain data analysis, making it a powerful tool for those developing consumer-oriented applications.
- Future iterations are expected to enable the writing and deployment of smart contracts on-chain, making the Solana blockchain more accessible and user-friendly.
See: Solana DeFi Is Starting Over — OpenBook
- Signs of Live Despite Market Challenges:
- Despite a significant 92% drop from its 2021 highs, Solana has started to recover, showing an 80% increase in the SOL token this year.
- However, the project faced various challenges including outages, criticisms regarding decentralization, and significant market share loss to other low-cost Layer 1s. The downfall of FTX and Alameda Research, significant Solana investors, also dealt a blow to the ecosystem.
- Solana persists and looks to AI as a means to regain momentum and foster growth.
- Boost for AI Grant Accelerator Program:
- In a bid to nurture the development of machine learning models interacting with Solana-based protocols, the blockchain announced a ten-fold funding increase for its AI accelerator grants program.
- The program, which has already attracted over 50 applications, will provide between $5,000 and $25,000 to successful applicants.
- The ecosystem is home to several AI-focused projects, demonstrating the potential for AI to revolutionize the functionality and usability of the blockchain.
Continue to the full article --> here
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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Newchip Online Accelerator Hits a Dead-end: Files for Chapter 7
TechCrunch | Mary Ann Azevedo, Christine Hall | May 19, 2023
Image: Freepik/onlyuqj
Once a promising online accelerator, Newchip has filed for Chapter 7 bankruptcy following Chapter 11 filings earlier this year.
- Bankruptcy and Insolvency:
- The company reported assets of $1.7 mill\ion against liabilities of $4.8 million. A history of financial losses and inability to raise significant funds contributed to Newchip's financial distress.
- Employee Unrest and Mismanagement:
- Discontent among employees and clients escalated over time, leading to a significant walkout demanding the resignation of founder and CEO, Andrew Ryan. Accusations of mismanagement, aggressive behavior, and poor leadership decisions were chief among the reasons cited by the ex-employees.
See: The Use of Cryptocurrency in the Fundraising and Venture Capital Industry
- Customer Dissatisfaction:
- Startups that signed up for Newchip's services expressed dissatisfaction with the high fees and lack of promised services.
- The reluctance and difficulty in obtaining refunds from the company further tainted Newchip’s reputation.
- Newchip’s business model of aggregating as many startups as possible, regardless of their stage of development, was criticized as prioritizing profit over value delivery.
- Leadership Style:
- Ryan's leadership approach, characterized by a "military mindset," was questioned by both employees and founders participating in the accelerator program. His responses to the allegations suggested an acknowledgment of some shortcomings, however, the overall impact of his leadership style appeared detrimental to Newchip's working environment.
Continue to the full article --> here
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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UK Fintech Wise’s Shares Drop Amidst CFO Exit and Recent CEO Sabbatical
CNBC | Ryan Browne | May 22, 2023
Image: Unsplash/Nick Fewings
Wise CFO Matt Briers to Exit Amid CEO Kaarman's Sabbatical - Shares Slide for British fintech giant
- Leadership Transition:
- CFO Matt Briers' announced departure from Wise in March 2024, along with CEO Kristo Kaarman's extended sabbatical, marks significant leadership changes at the British fintech firm. Briers, who led Wise from a start-up to a publicly-listed fintech titan, emphasises a bright future ahead for the company despite his exit.
- CTO Harsh Sinha will assume interim CEO duties during Kaarman's sabbatical. Sinha's experience at PayPal and eBay positions him well for this role. As Jefferies analysts speculate, this could potentially lead to a permanent CEO role for Sinha, with Kaarman taking on a broader role as executive chairman upon his return.
See: The Silent Mental Health Crisis: Leadership Burnout
- Share Price Impact:
- Wise shares dipped more than 4% after Briers' departure announcement, reflecting investor concern.
- Analysts from Jefferies see this leadership shakeup as a possible mid-term positive development for Wise shares, which have recently underperformed in the broader European payments and fintech sector.
Continue to the full article --> here
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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