Mahi Sall, Advisor, Fintech-Bank Partnerships, Payments and Financial Inclusivity
January 25th, 2023
Investment Executive | Ian Russell | Apr 5, 2022
The Canadian Venture Capital and Private Equity Association announced a record total of venture financings in 2021 — $14.7 billion. However, excluding the venture financings related to the public listings of eight large tech companies, the total was in line with the steady, modest annual financings in the past four years. And private company deals totalled $18.1 billion last year, well below annual private financings from 2017 to 2019.
The domestic private equity markets have failed to keep pace with the financing needs of existing and new businesses amid a steadily growing economy and the transition to digitalization. Further, the large and growing institutional fund sector accounts for a declining share of domestic private investment. Few large investment funds have established specialized private equity funds to meet early-stage funding demand.
The Ontario Capital Markets Modernization Taskforce in 2019–20 made path-breaking initiatives for more efficient securities regulations, new proxy rules and structural reforms. Steps like consolidating the self-regulatory system, and concepts like open access to the product shelves of large financial institutions will improve the effectiveness of regulated small financial institutions.
However, the task force should be reformed to be national in scope, expanding membership to all regions and widening accountability to provincial governments and the federal government.
Here are specific initiatives to consider:
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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