Who Gets Capital As Funding Channels Multiply?

CVCA reported that Q1 2026 saw CAD $936.3M invested across 104 venture capital transactions, compared with 178 transactions and $3.97B in Q4 2025.

• CVCA said Q1 2026 deal count was the lowest recorded in any quarter since 2017.
• Capital deployed remained above the pre 2021 Q1 range, which shows money still exists but deals face a narrower filter.
• For founders, the key problem is not only capital supply. It is whether the company fits what venture investors will fund now.

Crowdfunding evidence adds an important non bank and non VC funding channel to the capital access question.

• NCFA reported that Reg CF reached its 10 year mark with evidence of repeat issuer traction and valuation step ups.
• NCFA also tracked record Canadian equity crowdfunding activity and FrontFundr private market growth.
• This expands the capital formation picture beyond venture capital, but it still rewards firms that can build trust, communicate clearly, and bring investors into a credible story.

TSX Venture Exchange removed its Sponsor requirement, effective immediately.

• TSXV removed Policy 2.2, Form 2G, Form 2H, Form 2I, and Appendix 2A from its Corporate Finance Manual.
• The change reduces one listing process requirement for venture issuers and related transactions.
• This expands the public venture market access side of the evidence, but it does not remove the need for disclosure quality, investor demand, governance, and financing fit.

Upstart announced a $1B forward flow agreement with Eltura Ventures and Aperture Investors.

• The deal gives the investor group a 12 month arrangement to purchase consumer loans originated through Upstart.
• Forward flow capital can stabilize origination volume when bank balance sheets, credit appetite, or funding prices change.
• This channel rewards lenders that can prove loan quality, borrower performance, servicing discipline, and credit model reliability.

OSFI reduced capital requirements for certain unrated domestic infrastructure debt held by federally regulated property and casualty insurers.

• For unrated long term infrastructure debt, OSFI cut credit risk factors from 6% to 3%, 8% to 4%, and 10% to 5% depending on remaining term to maturity.
• The change took effect immediately and applies until further notice.
• This shows how capital access can expand when regulation makes a specific asset class more attractive to balance sheet investors.

The Financial Stability Board estimated private credit at $1.5T to $2.0T at the end of 2024 and warned that complexity, leverage, and interconnectedness could amplify stress.

• The FSB said the private credit ecosystem has direct bank credit line exposure of around $220B in available member data.
• Commercial estimates put related bank credit lines at $270B to $500B.
• Private credit can expand funding access, but it also increases scrutiny of valuation, borrower quality, leverage, and liquidity.

goeasy reported a difficult Q4 2025 tied to LendCare credit performance.

• The company recognized $177.9M in incremental loan charge offs related to the LendCare portfolio.
• goeasy reported a consumer loan portfolio of $5.51B at quarter end, up 20% from the prior year.
• Annualized net charge offs reached 23.8% in Q4 2025, compared with 9.2% in Q4 2024.
• This evidence shows why funding access depends on underwriting quality and credit performance, not only growth.

CIRO finalized amendments related to fully paid securities lending and financing arrangements.

• The amendments, guidance, and securities eligibility criteria became effective on Apr 27, 2026.
• CIRO said all previously granted fully paid lending exemptions became void on that date.
• Dealer programs now need to comply with the amended CIRO Rules, which creates a clearer but more controlled funding framework.

The SEC Division of Corporation Finance said EDGAR would accept filings during a shutdown, but staff would not be able to declare registration statements effective or qualify Form 1 A offering statements.

• This creates timing risk for financings that depend on staff action.
• For issuers, the lesson is practical: public market access depends on preparation, timing, and fallback planning.
• Even when public markets improve, the route to capital can still narrow at the execution stage.

The Federal Reserve, FDIC, and OCC requested comment on three proposals to modernize the regulatory capital framework for banks of all sizes.

• The agencies said the proposals would streamline capital requirements and better align regulatory capital with risk.
• Comments on the proposals are due by June 18, 2026.
• For fintechs, the issue is not abstract regulation. Bank capital treatment affects lending appetite, sponsor bank economics, credit pricing, and partner diligence.