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[...]
Medtech Start-up VoCare Boutique Crowdfunds $1.1 Million on Own Website
Crowdfund Insider | By | March 22, 2019
VoCare is raising capital for the launch of a new Medtech device, the Vitals360; a smartphone-sized diagnostic device for the Remote Patient Monitoring (RPM) and Point-of-Care verticals.
Current investors include AGS Capital and SAW Capital and tax credits are available to Indiana investors via the State of Indiana.
The Vitals360 eliminates the need for extra peripherals, hubs, and tablets for managing cardiac care, diabetes and other chronic conditions and offers cellular, Wi-Fi and Bluetooth enabled real-time data transfer to provider, patient and family portals. The Vitals360 device measurements include: (1) Blood Glucose, (2) Blood Pressure, (3) Pulse, (4) Oximetry, (5) Temperature, and (6) Electrocardiography (ECG).
When reviewing their options to raise capital, VoCare researched and consulted with a number of crowdfunding platforms. Their goal was a $2M capital raise via Reg D 506c for trials and sales and marketing so VoCare developed the PPM required for compliance. After several years in R&D for a “doctor’s office in your pocket” vitals device, the Vitals360 was moving through FDA approvals. VoCare’s goals also wanted to build a community and attract partners.
See: Search Finally. Canadian Securities Administrators Announce Intent to Harmonize & Improve Crowdfunding Exemption
The takeaway as VoCare wrapped up their search were four concerns:
- High platform fees
- Limited investor marketing support with the onus on issuer
- Deal clutter on the platforms
- The expectation by platforms that our current investors/prospects be added to their lists
What to do next? The equity crowdfunding platforms had a track record, expertise, systems, marketing tools, and an audience. Did those benefits justify the costs? For VoCare, the client felt the answer was no. So we asked ourselves can we use similar methods to crowdfund our raise directly on the VoCare website?
How did VoCare successfully crowdfund direct?
The strategy was to simulate some of the same tactics as the platforms but to also utilize some traditional processes – hence the “boutique crowdfunding” label, as the intended audience was accredited investors versus a mass crowdfunding.
As the equity crowdfunding industry matures, there are several great options for expert help in the space that issuers can consider.
So what was similar to platform-based equity crowdfunding?
Effective online story-telling
VoCare developed webpages that showcased their story of the Vitals360, the world’s first and only professional grade, hand-held medical device providing a 6-in-1 vitals diagnostic and remote monitoring solution. An easy to navigate pages on desktop and mobile featured a carefully structured pitch video, graphics and similar content structures to those found on platforms.
The investment page also effectively communicated the campaign metrics, massive market, competitive advantage and innovation as the core message. The home page was also utilized for additional traffic and exposure to the Limited Time Investment Opportunity.
Investor and prospect funnels
A content plan was developed to provide regular and timely communications on company progress, industry news, campaign milestones and help educate the sophisticated accredited investor audience on the opportunity.
See: How to Effectively Market an Equity Crowdfunding/Reg A+ Offering
For example, a sample campaign conveyed how Qualcomm Inc., world leader in 3G and next-generation mobile technologies, featured the Vitals360 at their booth at this past January at CES 2019 and that it was so well received that Qualcomm also showcased the device at the Mobile World Congress in Barcelona in February.
Automated emails and campaigns were integrated with the page and a press releases section up as an archive on the corporate website to provide depth. Calendars integration ensured seamless follow-up by VoCare executives to elaborate on the opportunity and address any questions.
Leveraged momentum and timing
Business development and networking created a pool of early adopters so that momentum could be created in the first few weeks of the campaign. As a result over $600k USD was raised within a few weeks, the page updated accordingly and the progress sent to the growing list.
The advent of new government payment codes from The Centers for Medicare and Medicaid Services (CMS) was also leveraged in messaging. With these new reimbursement codes, physicians are incentivized to drive more health care to the home, and leverage technology like VoCare’s Vitals360device.
A balance was struck between conservatism and the massive opportunity by only reporting on revenue and earnings projections in the US for device sales despite other market interest and other revenue models including data fees and blood monitoring strips.
How did the direct route differ from platform crowdfunding?
The front end of the investor experience was very similar to a platform but the back-end was largely handled off-line. Follow-up discussions and the actual investment process handling were completed offline. This created a nice mix between technology efficiencies and the personal touch of relationship building and high service levels. Not as seamless as a platform driven campaign but more personalized, more focused, less costly and quite effective.
A by-product of the VoCare campaign has also been considerable interest in distribution building on other partnerships including with industry heavyweights like GEMMS, of Harris Computer Systems, a division of Constellation Software, Inc. (TSX: CSU-T) and Chinese diabetes market leader SinoCare.
An issuer could also choose to add back-end functionality for a direct crowdfund via white-label solutions for contracts, accreditation and payments but VoCare felt they could handle the volume given there were significant minimum investments and that the sophisticated audience warranted a personal touch.
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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CoinDesk | Nikhilesh De, Oliver Knight | March 22, 2023 Sushi DAO and Head Chef Jared Grey were served with a subpoena by the U.S. Securities and Exchange Commission, the decentralized autonomous organization revealed Tuesday. Grey proposed creating a "Sushi DAO Legal Defense Fund" in a forum post, saying it would "cover legal costs for core contributors." The proposal recommends making $3 million in tether (USDT) available for core contributors, with another $1 million worth of USDT available in case the initial $3 million are used up. The sushi token dropped 5.5% on the news. One of the initial comments on the forum post asked how the DAO known as Sushi was subpoenaed, with the user saying they did not receive it despite being a member of the DAO. "We’re cooperating with the SEC. We do not intend to comment publicly on ongoing investigations or other legal matters," the forum post said. 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 ...
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FT | March 16 Europe’s financial regulators are furious at the handling of the Silicon Valley Bank collapse, privately accusing US authorities of tearing up a rule book for failed banks that they had helped to write. While the disapproval has yet to be conveyed in a formal setting, some of the region’s top policymakers are seething over the decision to cover all depositors at SVB, fearing it will undermine a globally agreed regime. One senior eurozone official described their shock at the “total and utter incompetence” of US authorities, particularly after a decade and a half of “long and boring meetings” with Americans advocating an end to bailouts. Europe’s supervisors are particularly irate at the US decision to break with its own standard of guaranteeing only the first $250,000 of deposits by invoking a “systemic risk exception” — despite claiming the California-based lender was too small to face rules aimed at preventing a rerun of the 2008 global financial crisis. A former senior UK policymaker who helped negotiate global standards for bank resolution described the SVB handling as a “disaster”. See: Superintendent of Financial Institutions took further action on the Silicon Valley Bank Canadian Branch While the Federal Reserve ...
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CoinDesk | Nikhilesh De, Oliver Knight | March 22, 2023 Sushi DAO and Head Chef Jared Grey were served with a subpoena by the U.S. Securities and Exchange Commission, the decentralized autonomous organization revealed Tuesday. Grey proposed creating a "Sushi DAO Legal Defense Fund" in a forum post, saying it would "cover legal costs for core contributors." The proposal recommends making $3 million in tether (USDT) available for core contributors, with another $1 million worth of USDT available in case the initial $3 million are used up. The sushi token dropped 5.5% on the news. One of the initial comments on the forum post asked how the DAO known as Sushi was subpoenaed, with the user saying they did not receive it despite being a member of the DAO. "We’re cooperating with the SEC. We do not intend to comment publicly on ongoing investigations or other legal matters," the forum post said. 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 ...
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Read More
Exploding Topics | Josh Howarth | Jan 20, 2023 The fintech space is making fast strides across many financial sectors, including consumer and B2B. Fintech investment and consumer adoption are clearly on the rise. But to what extent? And where is this industry headed? This list has you covered with a wide range of key, up-to-date financial technology (fintech) statistics. Fintech Industry Size: The fintech industry is worth approximately $180 billion (Deloitte) Global fintech industry revenue has nearly doubled since 2017 (Deloitte) There are currently over 26,000 fintech startups worldwide. This figure has grown dramatically over the past few years (up from only around 12,000 fintech startups in 2019). See: KPMG: Canadian Fintech Investment Drops in 2022, Mentality Shift to ‘Sensible’ Growth Investment: Fintech industry investment has increased 3.5x since 2015 (KPMG) In 2012, investment in fintech totaled $4 billion. By the end of 2021, fintech investment reached $210 billion. Venture capital distributions by sector funding: #1 Capital markets $8.07 billion #2 Payments $6.03 billion #3 Wealth management $5.43 billion #4 Digital lending $3.97 billion #5 SMB $3.36 billion #6 Banking $3.27 billion #7 Real estate $2.42 billion #8 Insurance $2.30 billion Adoption: 90% of Chinese citizens use fintech banking, ...
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CFPB | Mar 15, 2023 The Consumer Financial Protection Bureau (CFPB) issued a request for information on “data brokers,” “an umbrella term to describe firms that collect, aggregate, sell, resell, license, or otherwise share consumers’ personal information with other parties. See: Davos: Cooperation in a Fragmented World: In Data We Trust The CFPB is looking to better understand the “scope and breadth of data brokers’ business practices and the impact of those practices on the marketplace and peoples’ daily lives,” especially in relation to credit reporting and the requirements and intentions of the Fair Credit Reporting Act. Continue to view the announcement --> here Download the 13 page PDF RIF --> 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 ...
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Reuters | Stefania Spezzati, Oliver Hirt and John O'Donnell | Mar 19, 2023 Move follows Swiss rescue of Credit Suisse and signals depth of concern over the global financial system Some of the world’s largest central banks came together on Sunday to stop a banking crisis from spreading as Swiss authorities persuaded UBS Group AG to buy rival Credit Suisse Group AG in a historic deal. UBS will pay 3 billion Swiss francs (US$3.23 billion) for 167-year-old Credit Suisse and assume up to US$5.4 billion in losses in a deal backed by a massive Swiss guarantee and expected to close by the end of 2023. Soon after the announcement late on March 19, the U.S. Federal Reserve, the Bank of Canada, European Central Bank and other major central banks came out with statements to reassure markets that have been walloped by a banking crisis that started with the collapse of two regional U.S. banks earlier this month. The Fed said it had joined with central banks in Canada, England, Japan, the EU and Switzerland in a coordinated action to enhance market liquidity. The banks said they would start offering daily loans in dollars to their banks to avert stress in ...
Read More
Read More
Stripe | March 15, 2023 Stripe, a financial infrastructure platform for businesses, today announced OpenAI has chosen Stripe to power payments as it moves to commercialize its groundbreaking ChatGPT and DALL·E generative AI technologies. Powering OpenAI with Stripe: OpenAI is working with Stripe to commercialize its generative AI technology. Using Stripe’s suite of products, OpenAI was able to launch a global payments system for multiple product lines in a matter of weeks. See: Human vs Machine’s Tug-of-War: Stockmarket Automation Lessons GPT-3: Stripe has long used artificial intelligence to enhance its products and experiences for users, including to help users manage fraud and increase conversion rates. Last year, Stripe worked with Microsoft’s Azure OpenAI team to implement GPT-3 for Stripe Support, which is helping agents identify quicker resolution paths for the many users they interact with each week. Seventy-five percent of the leading generative AI companies have signed up with Stripe to go to market quickly, scale with compliance in mind, and bring their products to many more users worldwide. They include OpenAI, Runway, Diagram, and Moonbeam. GPT-4: After joining the GPT-4 beta in January, Stripe identified a range of ways to use the technology to streamline operations and help users ...
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March 20, 2023 Cloud-based solutions utilize live data analysis to equip your HR managers with vital resources that can enhance staff involvement. These solutions also enable your HR team to create personalized development plans for each employee, empowering them to take ownership of their career paths and achieve their professional goals. Incorporating the following cloud-based solutions in your HR department can significantly improve employee satisfaction and boost company performance. This article will examine 5 cloud-based solutions to help HR leverage employee engagement: 1. Video conferencing tools Video conferencing tools are cloud-based solutions that have become increasingly popular as organizations look for ways to improve and maintain employee engagement and collaboration in remote work environments. These tools effectively allow your HR department to connect with employees regardless of location, enabling better communication, engagement and teamwork. They also allow the HR team to hold meetings, conduct interviews, and even organize virtual events, such as team-building activities, without being in the same physical location. These tools can enable you to easily communicate updates on company policies and procedures, discuss career development opportunities, and offer feedback on employee performance. 2. Digital signage software Cloud-based digital signage involves utilizing a digital signage system hosted on ...
Read More
Read More
March 18, 2023 Starting a business from scratch can be an extremely daunting and burdensome process, especially for aspiring entrepreneurs. Fortunately, there is another option – franchising. Franchising provides many advantages such as buying into an established system with proven success metrics and reduced risk of failure due to training, support systems, and brand recognition. Before taking the leap into becoming part of a franchise, however, it’s important to thoroughly research the market to ensure you get the best value out of your chosen opportunity. Here we will explore some key steps in researching the market for a franchise opportunity so that you can make informed decisions about what kind of venture you want to undertake. Identify the Local Market for Your Potential Franchise Identification of the local market for a potential franchise is an essential step in the research process. Aspiring entrepreneurs should take time to consider the characteristics of their area, including economic and demographic trends, the competitiveness of the industry they are considering entering, and consumer behavior. Knowledgeable entrepreneurs should come to fully understand the needs of their prospective customers and how those needs compare to existing offerings within the market. It is important to become comfortable ...
Read More
Read More
The Globe and Mail | Tim Kiladze and Stefanie Marotta | March 17, 2023 The United States’ largest financial institutions have agreed to deposit US$30-billion in First Republic Bank, an unconventional private-sector rescue designed to shore up confidence in the financial system and contain an emerging crisis. The agreement was brokered by the U.S. government, but is funded by 11 of the country’s largest lenders and investment banks. Bank of America, Citigroup, JP Morgan Chase and Wells Fargo, known as the Big Four U.S. banks, are leading the effort with US$5-billion each. It is an unusual approach. The banks appear keen on testing mechanisms that aren’t as extreme as full-blown takeovers. San Francisco-based First Republic is caught in the fallout from Silicon Valley Bank’s collapse last Friday. Its shares have plummeted as much as 70 per cent over the past week. Much like SVB, First Republic has not reported any sudden loan losses or writedowns. But clients nervous about its stability have been pulling deposits and transferring them to larger institutions, something known as a flight to quality. See: European Regulators Condemn US ‘incompetence’ in SVB Collapse The U.S. government has already insured all deposits at SVB and Silvergate Bank, ...
Read More
Read More
Fintech.ca | Knowlton Thomas | Mar 15, 2023 Several startups are at the forefront of “rent reporting” in Canada. Many also offer other features that aim to help renting Canadians gain a financial edge toward homeownership. Zenbase: Zenbase was founded with the vision of “becoming a trusted partner in managing household finances while eliminating late fees and predatory financing.” One of the primary features of Zenbase’s flexible platform is allowing users to split their rent into two payments, saving on stress and avoiding overdraft or late fees. Last year, Zenbase secured $4 million in seed funding in a round led by Global Founders Capital. Chexy: Launched in 2021, Chexy was the first Canadian payments experience that afforded tenants the possibility of paying home rent via plastic card. Users get cash-back and other rewards from spending on a card—both on rent and at Chexy partner brands—while also building credit. Chexy believes building credit through rent is an important step toward home ownership. See: Halal Mortgages Emerging in Canada’s Housing Market Requity Homes: Founded in 2020, Toronto-based real estate platform Requity Homes operates a rent-to-own program that empowers Canadians to get one step closer to home ownership by allowing them to rent and save for their dream home ...
Read More
Read More
FT | March 16 Europe’s financial regulators are furious at the handling of the Silicon Valley Bank collapse, privately accusing US authorities of tearing up a rule book for failed banks that they had helped to write. While the disapproval has yet to be conveyed in a formal setting, some of the region’s top policymakers are seething over the decision to cover all depositors at SVB, fearing it will undermine a globally agreed regime. One senior eurozone official described their shock at the “total and utter incompetence” of US authorities, particularly after a decade and a half of “long and boring meetings” with Americans advocating an end to bailouts. Europe’s supervisors are particularly irate at the US decision to break with its own standard of guaranteeing only the first $250,000 of deposits by invoking a “systemic risk exception” — despite claiming the California-based lender was too small to face rules aimed at preventing a rerun of the 2008 global financial crisis. A former senior UK policymaker who helped negotiate global standards for bank resolution described the SVB handling as a “disaster”. See: Superintendent of Financial Institutions took further action on the Silicon Valley Bank Canadian Branch While the Federal Reserve ...
Read More
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