David Durand, Advisor, Innovation and Advocacy
September 9th, 2020
David Durand, LL.L., B.Sc. chem., – Founder and Managing Partner of Durand Lawyers – Lawyer (Québec)[...]
Gender Bias Contributes to Blocking Female Founders Out of Investment & Venture Capital. We Need to Fix This.
Crowdfund Insider | | Feb 20, 2019
The world of business equity raising is still dominated by men. Melinda Gates wrote in ReCode back in 2017:
“We like to think that venture capital is driven by the power of good ideas. But by the numbers, it’s men who have the keys.”
Gates argued that this was “more to do with historical inequalities than it does with innate ability.”
At the time of Gates’ comments, a U.S. analysis found that just 2% of venture capital finance went to start-ups founded by women, and with women comprising just 9% of the decision-makers at U.S. venture capital firms, the lack of female VC representation seemed a compelling reason as to why. The situation a year on shows no sign of improving.
Recently, a UK VC & Female Founders report for the Treasury discovered that for every £1 of VC investment, all-female founder teams get less than 1p.
Chief Secretary to the Treasury, Liz Truss said it was “incredible” that in 2019 men had a “virtual monopoly on venture capital.”
See: Meet the women who are making sure blockchain is inclusive
Even within the more disruptive, and arguably progressive, realms of crowdfunding, women are underrepresented – Crowdcube found that only 18% of their funded pitches are led by females or a joint team which includes a female.
As well as being hard to believe in this day and age, this status quo also makes terrible business sense.
Businesses largely led by women do better than male-dominated ones. And this isn’t a new discovery.
Multiple studies have shown this, and just recently, a report from US accelerator Mass Challenge found that for every dollar invested, a company founded by men generated 31 cents – compared to 78 cents produced by start-ups with women on the board.
Truss says she wants to see more women starting up businesses to “supercharge economic growth”. Whether our economy can be “supercharged” given the uncertain times we face, I’m certain that investing in female-founded or female-led businesses is one of the smartest things investors can do.
Endemic sexism
I understand the raising investment challenges start-ups face, particularly female-led start-ups, because I’ve experienced them first-hand – both in my identity as an entrepreneur in my past business, and now in my investment consultancy role – and I would say there are a few factors at play.
Firstly, investment is not really an industry many women tend to enter. It is viewed as a bit of an old boy’s club and has a reputation for not being female friendly. People don’t tend to want to go to a party that they’ve pointedly not been invited to or where they will be in the minority.
There is also an unhealthy dose of old-fashioned sexism still at play here.
See: Slowly but surely, women are changing fintech
I’ve been to several board and investor meetings at investment and law firms across the city and on more than one occasion people assumed I was there as the PA or the stand-in receptionist. Not the person presenting in the boardroom to the partners of the firm. I’ve also recently been in an office filled with men whose artwork on the walls included paintings of naked women!
The gender bias of the industry is also causing a vicious circle which is contributing to locking female founders out of investment. There are very few female investors in the UK, and at the same time, investors tend to invest in sectors that they know or intrinsically “get” which makes good, solid sense. Yet if all the investors are male it makes it that much harder for female-led and female-focused businesses to secure investment.
Female-led brilliance
But in the two years of raising £18 million for businesses of all sizes, including those with female founders, I have seen flashes of brilliance from the female-led camp – both in terms of women getting behind investment propositions and in how women are turning the situation to their advantage.
We recently managed The Baukjen Group’s crowdfunding campaign on Crowdcube. The brand, built on its premium Isabella Oliver maternity range and its contemporary womenswear offer, is understood by women. Its wife and husband founding team also offers the gender mix which we have found works incredibly powerfully for investors. Their raise achieved the highest number of female investors ever to invest in a company via crowdfunding – 77% of investors were women, compared to an average of 31% (Crowdcube.) It showed that women are ready to invest, and with a more democratic crowdfunding platform, they are able to play a bigger role and respond to brands they believe in.
While a lack of confidence and reticence in their approach to equity raising is holding female founders back, it is also driving them to approach investors with a more thorough and robust style.
See: Women & Minorities in Regulation Crowdfunding: High Success Rate Despite Low Representation & Lower Funding Levels
We have found in our experience with businesses that women tend to get down to the numbers, hard facts and proof-points much quicker than men when seeking investment. Female founders should play on this trait – especially when pitching a product that male investors wouldn’t intrinsically understand.
When Trinny Woodall pitched her beauty brand to investors, she knew that women would love her brand and would recognise the benefits of her make-up and the pain points it solved. However, looking around the room she recognised that she was pitching a female-focused product to a room full of men. So instead of pitching her product, she pitched purely the numbers, the margins, the market and the size of the opportunity.
In contrast, when we are dealing with an all-male founding team it can take us weeks to cut through the bravado, whereas women often take a more grounded approach – setting forth figures and projections plainly. The irony of this is that women are less likely to pursue investment in the first place, and when they do, are less likely to ask for what they need. This is a problem.
The solution? Education
One of the biggest solutions to the inequality of raising investment is around education. Female founders can be wary of investment because they view it as taking on debt but there are different forms of funding and it’s important to understand what funding actually means for your business. Equity funding is not debt and you won’t owe investors that money. You do have an obligation to do your best and use that funding wisely, with the aim to give a return but if it all goes wrong, investors lose their capital and know the risks involved.
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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CONGRATULATIONS TO THE 2020 FINTECH DRAFT PITCHING AND DEMO COMPANY WINNERS!   |
Financial Times | OpEd by Brian Brooks | Jan 12, 2021 Lenders run by algorithms and blockchain technology will require 21st century regulation The writer is the US acting comptroller of the currency In 1961, Popular Science magazine envisioned self-driving cars. The reality arrived sooner than anyone anticipated, and before safety regulators could adapt. Most automotive laws — on speed limits, giving signals, drink-driving — had been designed to protect against dangerous drivers, not dangerous cars. Autonomous vehicles brought new risks that legacy rules never considered. As one headline on the Wired website put it: “Who’s Regulating Self-Driving Cars? Often, No One”. Banking is headed down the same road. And it’s being driven by the technology behind decentralised finance, or DeFi. But just as the original rules of the road protected us from other drivers, so our current bank regulations exist mainly to prevent human failings. See: Intro to yield farming and the latest developments in DeFi At the US Office of the Comptroller of the Currency, we require every bank to have officers responsible for its safety — such as a chief risk officer and a chief audit executive. We limit how much banks can lend to their directors ...
Read More
Neo Financial and Concentra | Jan 13, 2021 CALGARY, Alberta--(BUSINESS WIRE)--Neo Financial (Neo), a Calgary-based fintech company created by two of the co-founders of SkipTheDishes, has announced a first-of-its-kind collaboration with Concentra Bank (Concentra), a Schedule 1 bank that is quietly fuelling innovation. Through this relationship, Neo is the first Canadian fintech company to offer a CDIC-eligible high-interest savings account that works like an everyday banking account. The accounts are held at Concentra, a Canada Deposit Insurance Corporation (CDIC) member bank. Together, Neo and Concentra have opened the door for innovation that has historically not been accessible within Canada’s consumer banking sector. “Canada’s banking sector continues to trail other countries, using technology that is more than 50 years old, and unable to innovate. This is why we set out to rebuild it from scratch. We wanted to create a seamless consumer-first experience, specifically for Canadians,” says Andrew Chau, Founder and CEO, Neo Financial. “Our collaboration with Concentra Bank is a great example of how new technology companies can work with industry partners to innovate better and faster to ensure Canada doesn’t fall behind.” “We’re different from many banks—we’re open to creative ideas and solutions for our customers and we’re less ...
Read More
IMF Blog | Catalina Margulis and Arthur Rossi | Jan 14, 2021 Countries are moving fast toward creating digital currencies. Or, so we hear from various surveys showing an increasing number of central banks making substantial progress towards having an official digital currency. But, in fact, close to 80 percent of the world’s central banks are either not allowed to issue a digital currency under their existing laws, or the legal framework is not clear. To help countries make this assessment, we reviewed the central bank laws of 174 IMF members in a new IMF staff paper, and found out that only about 40 are legally allowed to issue digital currencies. Not just a legal technicality Any money issuance is a form of debt for the central bank, so it must have a solid basis to avoid legal, financial and reputational risks for the institutions. Ultimately, it is about ensuring that a significant and potentially contentious innovation is in line with a central bank’s mandate. Otherwise, the door is opened to potential political and legal challenges. See: The Good, the Bad and the Ugly of Central Bank Digital Coins (CBDCs) Now, readers may be asking themselves: if issuing money is ...
Read More
FCA | Jan 14, 2021 This performance scorecard highlights some of the information available on personal current accounts (PCAs), and can help customers choose their provider by highlighting: good and poor performers how easily they can carry out day-to-day banking activities the reliability of the service they receive These metrics should also increase the incentive for firms to offer better service, helping customers to get the most out of their personal current accounts. Detailed below are 3 sources of data consumers can use to compare personal current account providers. These metrics only relate to service and not to the quality or price of products. Personal current account service quality metrics These independent league tables show customers how the 19 largest personal current account providers rank on quality of service and online and mobile banking services, making it easier to compare providers. This is information required by the Competition and Markets Authority (CMA). Quality of service is determined by how likely customers would be to recommend their provider to friends and family. Online and mobile banking services is determined by how likely customers would be to recommend their provider’s online and mobile banking services to friends and family In August 2020, ...
Read More
Coindesk | Nikhilesh De and Ian Allison | Jan 13, 2021 The crypto industry has its first federally chartered bank: Anchorage. Crypto custodian Anchorage has secured conditional approval for a national trust charter from the U.S. Office of the Comptroller of the Currency (OCC), making it the first national “digital asset bank” in the U.S. The safekeeping, management and trading of digital assets have been regulatory stumbling blocks for large financial institutions – but those obstacles are gradually being removed. The OCC, a part of the Treasury Department charged with keeping banks safe but also competitive, has now issued three interpretative letters that lay the groundwork for banks to custody crypto, participate in blockchain networks and become payment providers using the tech. “In granting this charter, the OCC applied the same rigorous review and standards applied to all charter applications,” the bank regulator said in a statement. “By bringing this applicant into the federal banking system, the bank and industry will benefit from the OCC’s extensive supervisory experience and expertise.” See: OCC says Federally regulated banks can use stablecoins to conduct payments and other activities “We are a national bank. The only difference is our business line, that we’re doing ...
Read More
HSE | Sarah H. Brennan | Jan 9, 2021 2020 US Summary If we put the last quarter of 2020 aside, this year could be marked by the sheer number of SEC enforcement actions and settlements in the crypto space, with more rumored to be in the works. However, the U.S. ended 2020 with a bang in the form of a flurry of proposed crypto regulations in Q4 with varying degrees of controversiality. Notably, the proposed STABLE Act and Mnuchin's midnight rulemaking on self-custody have caused a bit of an uproar, which we touch on in more depth below. See: Vitalik’s 2020 Year End Thoughts from Singapore Absent these recent rulemakings, there has been an unevenness in the Trump administration’s approach to the space and the last four years at the federal level haven’t been marked with any significant level of regulatory coordination or cohesive policy at the federal level. However, to pick upon some themes that we will talk about in this year-end review, regulators have vacillated between: (i) a focus on enforcement vs. prescriptive guidance, (ii) a tech specific vs. tech agnostic approach, (iii) aggressive views of jurisdictional reach vs. deference, and (iv) state, federal, and global coordination ...
Read More
Altfi.com | Aisling Finn | Jan 11, 2021 Fintechs flourished on Seedrs, maintaining the title of the most invested-in sector, with £78m invested in fintechs through the platform. Crowdfunding platform Seedrs saw investments through its platform top £293m in 2020, hitting a milestone of £1bn invested to date on Christmas Day. Fintech remained the most invested-in sector, scooping £78m collectively, with other areas seeing huge increases in investment, for instance, healthcare firms saw a 292 per cent jump in investment in 2020. Seedrs says over 70 campaigns raised over £1m on the platform, with big fintech names such as money management app Snoop, which raised £10mhere have been nearly 14,000 investor exits on its secondary market to the tune of £5m, Seedrs says. Jeff Lynn, executive chairman and co-founder of Seedrs, said: “Given the huge challenges that 2020 posed for all businesses, it is a source of great pride for the Seedrs team that have come to the end of the year having delivered meaningful growth across all key metrics.” See: Regulation Crowdfunding Cap in the US moves from $1.07M to $5M on March 15, 2021 NCFA Response to the Modernizing Ontario’s Capital Markets Consultation Taskforce The record figures come ...
Read More
The New York Times | Steve Lohr | Jan 10, 2021 Tim Berners-Lee wants to put people in control of their personal data. He has technology and a start-up pursuing that goal. Can he succeed? Three decades ago, Tim Berners-Lee devised simple yet powerful standards for locating, linking and presenting multimedia documents online. He set them free into the world, unleashing the World Wide Web. Others became internet billionaires, while Mr. Berners-Lee became the steward of the technical norms intended to help the web flourish as an egalitarian tool of connection and information sharing. See: PwC Report: Canadian Digital Trust Insights 2021: Cybersecurity comes of age But now, Mr. Berners-Lee, 65, believes the online world has gone astray. Too much power and too much personal data, he says, reside with the tech giants like Google and Facebook — “silos” is the generic term he favors, instead of referring to the companies by name. Fueled by vast troves of data, he says, they have become surveillance platforms and gatekeepers of innovation. Regulators have voiced similar complaints. The big tech companies are facing tougher privacy rules in Europe and some American states, led by California. Google and Facebook have been hit with ...
Read More
Hardbacon | Julien Brault | Jan 15, 2021 In my time as a business reporter, I was at the forefront during the decline of the country's 2000s tech giant, BlackBerry. BlackBerry launched its mobile app store in 2009, a year after Apple launched the App Store. Everyone knows the rest of the story. See: NCFA OpEd: Canada’s Open Banking Consultations: Let’s Get it Done! While BlackBerry executives praised themselves for having better sound quality and a more efficient keyboard, what people wanted when they bought a smartphone were apps. Today, the Canadian banks are making the same mistake by refusing to put control of financial data back into the hands of their users, as the European banks are already doing. In fact, since September 14, 2019, European open banking regulations (PSD2) force banks to allow their customers to share their data with third parties according to a standardized protocol. In other words, their customers can choose to share their bank information with an online loan app or even with a budgeting app. In Canada, the federal government created the Advisory Committee on Open Banking in 2018, which delivered its first report in 2020, which was very favorable to open banking ...
Read More
Crowdfund Capital Advisors | Sherwood Neiss | Jan 14, 2021 Today the Securities and Exchange Commission entered into the Federal Register the amendments to Regulation Crowdfunding. Specifically, facilitating capital formation and expanding investment opportunities by improving access to capital in private markets. These include: Raising the offering limit in Regulation Crowdfunding from $1.07 million to $5 million; Amending the investment limits for investors in Regulation Crowdfunding offerings by: removing investment limits for accredited investors; and using the greater of their annual income or net worth when calculating the investment limits for non-accredited investors; Extending for 18 months the existing temporary relief providing an exemption from certain Regulation Crowdfunding financial statement review requirements for issuers offering $250,000 or less of securities in reliance on the exemption within a 12-month period; Permitting Regulation Crowdfunding issuers to “test-the-waters” prior to filing an offering document with the Commission in a manner similar to current Regulation A and, Establishing rules that permit the use of Special Purpose Vehicles (SPV) that function as a conduit for investors to facilitate investing in Regulation Crowdfunding issuers. See: NCFA Response to CSA on NI 45-110 Harmonized Securities Crowdfunding Rules View the Federal Register and Final Rule --> here The ...
Read More
Financial Times | OpEd by Brian Brooks | Jan 12, 2021 Lenders run by algorithms and blockchain technology will require 21st century regulation The writer is the US acting comptroller of the currency In 1961, Popular Science magazine envisioned self-driving cars. The reality arrived sooner than anyone anticipated, and before safety regulators could adapt. Most automotive laws — on speed limits, giving signals, drink-driving — had been designed to protect against dangerous drivers, not dangerous cars. Autonomous vehicles brought new risks that legacy rules never considered. As one headline on the Wired website put it: “Who’s Regulating Self-Driving Cars? Often, No One”. Banking is headed down the same road. And it’s being driven by the technology behind decentralised finance, or DeFi. But just as the original rules of the road protected us from other drivers, so our current bank regulations exist mainly to prevent human failings. See: Intro to yield farming and the latest developments in DeFi At the US Office of the Comptroller of the Currency, we require every bank to have officers responsible for its safety — such as a chief risk officer and a chief audit executive. We limit how much banks can lend to their directors ...
Read More
Read More
Neo Financial and Concentra | Jan 13, 2021 CALGARY, Alberta--(BUSINESS WIRE)--Neo Financial (Neo), a Calgary-based fintech company created by two of the co-founders of SkipTheDishes, has announced a first-of-its-kind collaboration with Concentra Bank (Concentra), a Schedule 1 bank that is quietly fuelling innovation. Through this relationship, Neo is the first Canadian fintech company to offer a CDIC-eligible high-interest savings account that works like an everyday banking account. The accounts are held at Concentra, a Canada Deposit Insurance Corporation (CDIC) member bank. Together, Neo and Concentra have opened the door for innovation that has historically not been accessible within Canada’s consumer banking sector. “Canada’s banking sector continues to trail other countries, using technology that is more than 50 years old, and unable to innovate. This is why we set out to rebuild it from scratch. We wanted to create a seamless consumer-first experience, specifically for Canadians,” says Andrew Chau, Founder and CEO, Neo Financial. “Our collaboration with Concentra Bank is a great example of how new technology companies can work with industry partners to innovate better and faster to ensure Canada doesn’t fall behind.” “We’re different from many banks—we’re open to creative ideas and solutions for our customers and we’re less ...
Read More
Read More
IMF Blog | Catalina Margulis and Arthur Rossi | Jan 14, 2021 Countries are moving fast toward creating digital currencies. Or, so we hear from various surveys showing an increasing number of central banks making substantial progress towards having an official digital currency. But, in fact, close to 80 percent of the world’s central banks are either not allowed to issue a digital currency under their existing laws, or the legal framework is not clear. To help countries make this assessment, we reviewed the central bank laws of 174 IMF members in a new IMF staff paper, and found out that only about 40 are legally allowed to issue digital currencies. Not just a legal technicality Any money issuance is a form of debt for the central bank, so it must have a solid basis to avoid legal, financial and reputational risks for the institutions. Ultimately, it is about ensuring that a significant and potentially contentious innovation is in line with a central bank’s mandate. Otherwise, the door is opened to potential political and legal challenges. See: The Good, the Bad and the Ugly of Central Bank Digital Coins (CBDCs) Now, readers may be asking themselves: if issuing money is ...
Read More
Read More
FCA | Jan 14, 2021 This performance scorecard highlights some of the information available on personal current accounts (PCAs), and can help customers choose their provider by highlighting: good and poor performers how easily they can carry out day-to-day banking activities the reliability of the service they receive These metrics should also increase the incentive for firms to offer better service, helping customers to get the most out of their personal current accounts. Detailed below are 3 sources of data consumers can use to compare personal current account providers. These metrics only relate to service and not to the quality or price of products. Personal current account service quality metrics These independent league tables show customers how the 19 largest personal current account providers rank on quality of service and online and mobile banking services, making it easier to compare providers. This is information required by the Competition and Markets Authority (CMA). Quality of service is determined by how likely customers would be to recommend their provider to friends and family. Online and mobile banking services is determined by how likely customers would be to recommend their provider’s online and mobile banking services to friends and family In August 2020, ...
Read More
Read More
Coindesk | Nikhilesh De and Ian Allison | Jan 13, 2021 The crypto industry has its first federally chartered bank: Anchorage. Crypto custodian Anchorage has secured conditional approval for a national trust charter from the U.S. Office of the Comptroller of the Currency (OCC), making it the first national “digital asset bank” in the U.S. The safekeeping, management and trading of digital assets have been regulatory stumbling blocks for large financial institutions – but those obstacles are gradually being removed. The OCC, a part of the Treasury Department charged with keeping banks safe but also competitive, has now issued three interpretative letters that lay the groundwork for banks to custody crypto, participate in blockchain networks and become payment providers using the tech. “In granting this charter, the OCC applied the same rigorous review and standards applied to all charter applications,” the bank regulator said in a statement. “By bringing this applicant into the federal banking system, the bank and industry will benefit from the OCC’s extensive supervisory experience and expertise.” See: OCC says Federally regulated banks can use stablecoins to conduct payments and other activities “We are a national bank. The only difference is our business line, that we’re doing ...
Read More
Read More
HSE | Sarah H. Brennan | Jan 9, 2021 2020 US Summary If we put the last quarter of 2020 aside, this year could be marked by the sheer number of SEC enforcement actions and settlements in the crypto space, with more rumored to be in the works. However, the U.S. ended 2020 with a bang in the form of a flurry of proposed crypto regulations in Q4 with varying degrees of controversiality. Notably, the proposed STABLE Act and Mnuchin's midnight rulemaking on self-custody have caused a bit of an uproar, which we touch on in more depth below. See: Vitalik’s 2020 Year End Thoughts from Singapore Absent these recent rulemakings, there has been an unevenness in the Trump administration’s approach to the space and the last four years at the federal level haven’t been marked with any significant level of regulatory coordination or cohesive policy at the federal level. However, to pick upon some themes that we will talk about in this year-end review, regulators have vacillated between: (i) a focus on enforcement vs. prescriptive guidance, (ii) a tech specific vs. tech agnostic approach, (iii) aggressive views of jurisdictional reach vs. deference, and (iv) state, federal, and global coordination ...
Read More
Read More
Altfi.com | Aisling Finn | Jan 11, 2021 Fintechs flourished on Seedrs, maintaining the title of the most invested-in sector, with £78m invested in fintechs through the platform. Crowdfunding platform Seedrs saw investments through its platform top £293m in 2020, hitting a milestone of £1bn invested to date on Christmas Day. Fintech remained the most invested-in sector, scooping £78m collectively, with other areas seeing huge increases in investment, for instance, healthcare firms saw a 292 per cent jump in investment in 2020. Seedrs says over 70 campaigns raised over £1m on the platform, with big fintech names such as money management app Snoop, which raised £10mhere have been nearly 14,000 investor exits on its secondary market to the tune of £5m, Seedrs says. Jeff Lynn, executive chairman and co-founder of Seedrs, said: “Given the huge challenges that 2020 posed for all businesses, it is a source of great pride for the Seedrs team that have come to the end of the year having delivered meaningful growth across all key metrics.” See: Regulation Crowdfunding Cap in the US moves from $1.07M to $5M on March 15, 2021 NCFA Response to the Modernizing Ontario’s Capital Markets Consultation Taskforce The record figures come ...
Read More
Read More
The New York Times | Steve Lohr | Jan 10, 2021 Tim Berners-Lee wants to put people in control of their personal data. He has technology and a start-up pursuing that goal. Can he succeed? Three decades ago, Tim Berners-Lee devised simple yet powerful standards for locating, linking and presenting multimedia documents online. He set them free into the world, unleashing the World Wide Web. Others became internet billionaires, while Mr. Berners-Lee became the steward of the technical norms intended to help the web flourish as an egalitarian tool of connection and information sharing. See: PwC Report: Canadian Digital Trust Insights 2021: Cybersecurity comes of age But now, Mr. Berners-Lee, 65, believes the online world has gone astray. Too much power and too much personal data, he says, reside with the tech giants like Google and Facebook — “silos” is the generic term he favors, instead of referring to the companies by name. Fueled by vast troves of data, he says, they have become surveillance platforms and gatekeepers of innovation. Regulators have voiced similar complaints. The big tech companies are facing tougher privacy rules in Europe and some American states, led by California. Google and Facebook have been hit with ...
Read More
Read More
Hardbacon | Julien Brault | Jan 15, 2021 In my time as a business reporter, I was at the forefront during the decline of the country's 2000s tech giant, BlackBerry. BlackBerry launched its mobile app store in 2009, a year after Apple launched the App Store. Everyone knows the rest of the story. See: NCFA OpEd: Canada’s Open Banking Consultations: Let’s Get it Done! While BlackBerry executives praised themselves for having better sound quality and a more efficient keyboard, what people wanted when they bought a smartphone were apps. Today, the Canadian banks are making the same mistake by refusing to put control of financial data back into the hands of their users, as the European banks are already doing. In fact, since September 14, 2019, European open banking regulations (PSD2) force banks to allow their customers to share their data with third parties according to a standardized protocol. In other words, their customers can choose to share their bank information with an online loan app or even with a budgeting app. In Canada, the federal government created the Advisory Committee on Open Banking in 2018, which delivered its first report in 2020, which was very favorable to open banking ...
Read More
Read More
Crowdfund Capital Advisors | Sherwood Neiss | Jan 14, 2021 Today the Securities and Exchange Commission entered into the Federal Register the amendments to Regulation Crowdfunding. Specifically, facilitating capital formation and expanding investment opportunities by improving access to capital in private markets. These include: Raising the offering limit in Regulation Crowdfunding from $1.07 million to $5 million; Amending the investment limits for investors in Regulation Crowdfunding offerings by: removing investment limits for accredited investors; and using the greater of their annual income or net worth when calculating the investment limits for non-accredited investors; Extending for 18 months the existing temporary relief providing an exemption from certain Regulation Crowdfunding financial statement review requirements for issuers offering $250,000 or less of securities in reliance on the exemption within a 12-month period; Permitting Regulation Crowdfunding issuers to “test-the-waters” prior to filing an offering document with the Commission in a manner similar to current Regulation A and, Establishing rules that permit the use of Special Purpose Vehicles (SPV) that function as a conduit for investors to facilitate investing in Regulation Crowdfunding issuers. See: NCFA Response to CSA on NI 45-110 Harmonized Securities Crowdfunding Rules View the Federal Register and Final Rule --> here The ...
Read More
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