September 26th, 2018
Form Fintech & Holt Accelerator Create Map of Canadian FinTech Ecosystem
Montreal’s newest startup accelerator isn’t afraid to try new things. The Holt accelerator, established earlier this year, has teamed up with Form Fintech and Lab Zed to produce what they are calling the first exhaustive map of Canada’s FinTech ecosystem.
“We’re pretty well connected with the Canadian fintech community and we hadn’t seen anyone build anything like this, so we decided hey, let’s do it” says Jan Arp, Managing Partner and founder at the Holt Accelerator. “It’s an ecosystem map. There’s also some analysis in there so people can start to see who’s doing what across Canada. It’s what everyone’s been talking about, but we haven’t seen anything as comprehensive as this yet”.
“The idea is that the more we can add the data and metrics, then the more interactive of a platform it can become for users” added Geraldine Holliday, Head of Digital Product at Form Fintech, who was part of the team building the map. “You’ll be able to see what stage each company is at, how much money have they raised… have they been part of different accelerators or incubators and so on…”.
Her partner on this project, Sagar Agarwal, Head of Research and Analysis at Form Fintech added “The next step would be to do a thorough analysis and give meaning to all this data that would lead to reports and publications. We want to provide information on how banks are working with fintechs, which areas had the largest churn and the like – information which can be used by anyone interested in the Canadian fintech ecosystem”.
Some of the findings from this project may surprise those who follow Canadian fintech. For example, the number of new fintechs being established in Canada each year is actually shrinking according to these findings. A surprising revelation given all the VCs, incubators and financial institutions who have been upping their game over the last few years. Here are the findings:
- The number of new fintechs founded in Canada crested at 94 in 2015 and has been declining since then. 68 new fintechs were created in Canada in 2017
- The number of fintechs created in Quebec has risen from the low teens to the mid twenties over the last 5 years. Despite a slight decline in 2017, this number has remained fairly steady from 2015 to 2017.
- Quebec has seen strong growth in the proportion of fintechs being launched, accounting for 16% of new Canadian fintechs in 2014, 25% in 2015 and 35% in 2016 and 2017.
- Of the 870 fintechs in Canada, 37% were created from 2014 to 2016
- Approximately half of Canadian fintechs created from 2014 to 2016 were in Ontario
- Quebec fintechs are the youngest in Canada, averaging just 5.5 years since being founded
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