Lynn Johannson, Advisor, Sustainability and ESG
January 4th, 2024
Lynn Johannson, President of E2 Management Corporation and Catalyst for THE Collaboration
In a care[...]
Category Archives: Fundraising, Investing, Trading
Insights from Jamie Dimon’s 2024 Letter to Shareholders
Markets and Economy | April 15, 2025
Image: Jamie Dimon, Chairman and CEO, JP Morgan Chase
Jamie Dimon’s 2024 Letter Outlines Global Risks and Advice for Leaders
On April 7 2025, CEO Jamie Dimon of JPMorgan Chase published his annual 2024 letter to shareholders (58 page PDF), which is widely read by business and policy leaders around the globe. This year's edition, his messages are especially urgent. He describes a world of rising risks, and big decisions ahead with profound implications that stretch beyond simply Wall Street. Below are 5 insights that fintech founders, investors and Canadian decision makers need to know:
1. The U.S. Dollar’s Strength is At Risk
“History has shown that as countries become weaker, their currency loses reserve currency status.”
Dimon issued a clear warning that's rarely said out loud by execs of America’s biggest banks. That is the U.S. dollar’s global dominance is fading because it's strength relies on TRUST in U.S. institutions, alliances, and policy, BUT that trust is now eroding.
Last week, the U.S. dollar dropped significantly reaching a 3 year low against major global currencies. The decline is largely due to the Trump administration's escalating tariffs and trade tensions on imports from several countries, such as China, Canada and European nations. Tariffs led to increased market volatility, shaking investor confidence in American economic policies.
See: Ottawa Unleashes Policy Blitz to Support Economy
The WSJ published a report with the former Treasury Secretary, Janet Yellen, saying that investors "seem to be shunning dollar assets". Previously, for the past several decades, investors flocked to buy U.S. dollars during times of volatility and economic uncertainty because it was considered stable and safe.
American risks or lack of trust in its institutions is now prompting countries like Germany who hold 1200 tonne of their US gold reserve on American soil, to verify the existence of their gold and begin repatriating it back to Germany in case assets are suddenly frozen or risks spiral out of control. And they aren't the only country with concerns.
For Canada, this might open a window. If global capital starts looking for stable alternatives, Canadian institutions can position themselves as reliable partners. Our political stability and sound financial regulations are competitive assets. This is a moment to invest in confidence including the platforms and tools fintechs are building.
2. What Happens If the Free Ride Ends?
Dimon spells out just how much the U.S. benefits from being the world’s reserve currency:
“Being the reserve currency saves the United States $100 billion a year at current interest rates... People around the world actually carry approximately $2.5 trillion of paper U.S. dollars, which, in effect, is borrowing without paying interest.”
However, the U.S. being the global reserve currency isn't sustainable without continued global trust. For financial technology firms offering multi-currency accounts, global payments, and crypto on-ramps, this new reality is an opportunity.
See: Stablecoins Are Growing Faster Than You Think
If the dollar loses its unique place in the global system, financial firms will need to design for a world where volatility is the norm. That could mean hedging tools, stablecoins backed by liquid and diversified reserves, and tokenization of various assets could see a boost akin to gold, or a digital version of it.
3. A Weakened Financial System at Risk
“The U.S. deficit remains very large at just below $2 trillion, or 6.6% of GDP,” and warns that the “debt-to-GDP ratio is already over 100%.”
The U.S. government has borrowed nearly $11 trillion since the pandemic. The total U.S. federal debt is more than $34 trillion, which is greater than 100% of GDP. He says this is a structural issue and that America's fiscal path is on unstable footing. When debt continues to rise with no end in sight, global confidence wavers.
While in a different situation, Canada is under economic pressure from Trump's tariffs and trade war, persistent decline in productivity, and lower growth and foreign direct investment compared to many of its peer countries. It must restructure its own policies to support a fiscal agenda that supports innovation, digital infrastructure, supply chain and trading partner diversification, interprovincial trade, and green transitions that put Canada on a new path of economic growth. Canada can offer to the world what the U.S.'s current administration is turning, it's back against, a well managed democracy, and a country with ample resources (including human capital) that's serious about the future.
4. Fragmentation Could Break the System
One of Dimon’s strongest warnings is about fragmentation.
“Economic fragmentation from our allies may be disastrous in the long run… Keeping our alliances together, both militarily and economically, is essential.”
He’s not just just talking about political division but economic ones, such as trade wars, competing currencies and trading blocs, and digital standards that no longer align with alliances that underpin and support U.S. markets in the way they do today. A world where economic cooperation breaks down and different countries build their own separate systems for money, trade, and technology - leading to incompatible digital standard and higher costs while opening the door for bad actors to take advantage of new weak links in the system. It could also encourage allies to rally around a new financial power for stability.
See: Digital Export Trends and Global Trade Fintech Opportunities
For fintechs and Canada, it's a risk and opportunity. It means building our own rails, compliance protocols, and digital ID systems that work across borders. The more neutral, resilient, and standardized Canada's digital infrastructure becomes, the more relevant it is globally.
5 Pieces of Management Advice from Diamon's Playbook
In his letter to shareholders, Dimon shares lessons from decades of experience fro leading through crisis, transformation, and growth.
1. He warns that innovation can be smothered by too much money, too little clarity, or endless process. For startups, that’s a reminder to stay scrappy and experimental.
“You can kill innovation with too many resources, too few resources or bureaucracy… Evaluate innovative ideas through testing and learning rather than rote analysis.”
2. He also challenges the usual advice about delegation for mission-critical areas like cybersecurity, talent, or trust, and says leaders should get into the details.
“I changed my mind. I’m going to micromanage this one… In my entire career, I’ve rarely seen this kind of outsourcing of responsibility succeed.”
3. Don’t hide behind weak benchmarks.
See: Canadian Fintech Booms with $9.5B Despite Global Slump
4. Don’t sit through bad meetings, but "if a meeting is required, make it count… I ALWAYS do the pre-read… This has to stop: people checking notifications, texting, reading email. It’s disrespectful. It wastes time.”
5. In uncertain times, discipline is more powerful than vision alone.
Conclusion
The status quo is no longer. As geopolitical and economic risks take over, it's more pressing than ever for Canada to grow trust, build bridges, and invest in innovation with a strong economic growth mandate. Canada's fintech and financial ecosystem, can still thrive in a fragmenting world. We can't outspend superpowers but we can out-think them.
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, artificial intelligence, 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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Plaid Raises $575M to Scale Fintech Infrastructure
Financing | April 14, 2025
Image: Freepik
Plaid’s $575 Million Series D Signals a Deeper Strategy in Fintech Data and Embedded AI
Financial infrastructure provider, Plaid, announced on April 3 2025, that they raised $575 million Series D at a valuation of $6.1 billion valuation led by Frank Templeton, BlackRock, Fidelity, and others including existing investors such as NEA and Ribbit Capital. While the valuation is significantly lower than it's 2021 peak of $13.4 billion, Plaid's latest round is a story of consolidation of it's role at the heart of embedded finance, and not of decline.
Plaid is a backbone of embedded finance with a footprint that spans more than 8,000 apps, including many widely used fintech tools and providers in Canada and the U.S. For Canadian fintech companies, this raise hints at where industry is heading and who will control its most critical pipes.
A Profitable Platform in a Tough Market
Unlike most fintech firms still chasing break-even, Plaid finished off 2024 with positive operating margins, strong ash flows and a 25% yoy revenue increase. In Plaid's letter to shareholders, 2025, CEO and Cofounder Zach Perret explained that it has a usage based billing model where Plaid earns revenue when an end user signs-up, takes actions in connected apps, or remains active on a per-user-per-month basis. In a market where profitability is favoured over growth at all costs, these numbers speak volumes.
See: 12 Market Entry Approaches for Fintech Startups
The platform has achieved a core level of recurring annual revenue that allows it to reinvest confidentially in areas like AI powered fraud prevention and data-science enhanced credit scoring.
“Our core business has consistently grown double digits year-over-year despite 2022 and 2023 being the worst slowdown in fintech in the last two decades.”
Plaid's shareholder letter also reports that over 50% of Americans with a bank account have used the platform, either directly or through partner apps. Its customers include enterprise players like Affirm, Chime, Robinhood, SoFi, Citi, and H&R Block, plus thousands of fintech startups globally.
“Our products are the bedrock upon which many of the most well-known financial brands are built.”
Strategic Round
Unlike past funding frenzies, this round was strategic, institutional, and about positioning control over the infrastructure of financial data, an area about to be transformed by AI and embedded finance.
In the past few years, Plaid has transformed itself from a bank linking utility into an infrastructure platform with multiple tools, such as alternative credit data, anti-fraud solutions, and bank payments infrastructure. CEO Perret explained that "New products represented >20% of ARR in 2024, compounding at 93% annually.” So it's no longer just about the interface, the tools and stack is consolidating into robust infrastructure.
See: Why No Code AI Agents Matter for Fintech in Canada
A large portion of the funds are being allocated to convert restricted stock units (RSUs) into shares to provide liquidity for long term employees and retention strategy for talent. The rest of the funding will continue to support product development powered by data science, machine learning, and AI.
The Open Banking Delay That’s Costing Canada
Plaid’s expanding capabilities also highlight Canada’s open banking delays. Canada is expected to implement open banking in 2026, but it doesn't have it yet, despite Finance Canada researching it and promising its implementation for years.
Without a formal framework in place, Canadian fintechs must rely on third-party data aggregators like Plaid to access banking information, including firms like Wealthsimple and KOHO. While using Plaid's banking access tools enables fintechs to get up and running quickly and innovate in the short term, it places critical infrastructure in the hands of foreign companies, raising concerns about data sovereignty and long term competitive capacity.
See: The Crisis Canada and Fintech Can’t Afford to Waste
Daniel Eberhard, CEO of Koho to the House of Commons Standing Committee on Finance:
“In Canada, we do not have open banking. Every time we need to interact with the incumbent financial system, we’re forced to build workarounds.”
Closing Outlook
Plaid's $537 million strategic series D signals a consolidation of fintech infrastructure. Capital is becoming more selective and innovation is leading towards AI and embedded services, so the companies that control the access to data and financial infrastructure are gaining strategic ground. Canadian fintechs and policymakers of open banking in Canada should be watching developments closely to ensure Canada can remain competitive and not overly reliant on U.S. infrastructure.
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, artificial intelligence, 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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Strengthening Resilience and Leading Through Uncertainty
Leadership | April 14, 2025
Image: Freepik/rawpixel.com
Why Embracing Uncertainty Can Help Founders Gain Insight (During Chaos)
In an economic climate where geopolitical tensions are high and markets volatile with inflation spikes and policy u-turns, founders and innovators that embrace uncertainty can gain an edge. Uncertainty isn't a side effect of innovation, it's the starting line. Inspired from Deepak Chopra's recent article on the power of uncertainty, this article looks at the impact of embracing the unknown and how it can sharpen decision-making, unlock creativity, and help build resilience during times of rapid change and uncertainty.
Key Actionable Insights
1. Uncertainty Isn't the Enemy...It's the Edge
Chopra argues that trying to eliminate uncertainty kills creativity. When everything is 'the exact same', it breeds complacency. We've all experienced this. During some routine periods, a founder may feel that time is passing by very quickly. Yet during times of great change, novelty, innovation, a founder may feel that time is going by slowly. Fintech leaders who stay agile during times of ambiguity can separate themselves from those who stall in the face of uncertainty. Put differently, successful founders don't just survive during chaos, they scan for signals of change/chaos that others can miss, often giving them an edge.
See: 11 C’s of Soft Leadership and Emotional Intelligence
Just after the global financial crisis in 2008, Toronto-based Wave Financial launched in 2009. CEO Kirk Simpson saw that most traditional accounting software providers were offering tighter pricing and focused on enterprise clients to survive. Wave took a different approach and offered free tools to small to medium sized businesses (SMEs) and freelancers, and turned the crisis into a launch and growth opportunity. Wave was later acquired by H&R Block for $537 million.
Lesson: Fintech leaders who understand that uncertainty can unlock radical innovation, can give them an advantage over legacy players who retreat during times of constraints and volatility.
2. Your Brain’s Constraint Valve and How to Open It
Chopra describes daily constraints as a 'reducing value' that narrows perception and thus creativity, and by way of extension innovation and opportunity. This includes your daily habits and fixed beliefs. It's the caution, fear, and routine that limits all kinds of experiences. Breakthroughs rarely occur when ones perception is full of constraints and limited. If one provides the same inputs, they can expect the same outputs. Fintech founders and leaders can expect breakthroughs to occur where certainty ends.
See: BoE Report: Open Banking Boosts Productivity, Competition
Actionable takeaway: Host an 'uncertainty sprint'! Bring your team together with a single question and use it to generate unexpected solutions and test and iterate the thinking. "What if our biggest unknown became our biggest asset?
3. Transform The Present
It's easy to get lost in obsessing over the future - what's our forecast, future funding rounds or policy changes as examples. Chopra however reminds us that the only time you can take action is now. A strategy that is grounded in the present can lead to smarter execution.
Example: As digital financial services adoption continue to grow, incumbent banks are closing more and more physical branches, especially in rural and underserved areas during a cost-of-living crisis. In 2024, Canadian fintech Koho partnered with Canada Post to begin implementing a modern version of postal banking, which would provide basic digital banking services using Koho's financial infrastructure while making it available through Canada Post's national network. Together they reimagined a legacy system as a tool for financial inclusion while others were fixated on what's broken. By staying level headed and grounded in the present, Koho and Canada Post rediscovered what was already working today, and then transformed it.
4. Resilience is a Learnable Skill
For those that aren't used to uncertainty, it can create severe mental fatigue. Founders are required to juggle a ton of demands from compliance and culture to capital and product development and distribution.
See: What Toronto Can Learn from Tel Aviv’s Start-Up Scene
Founders should work to train their minds like athletes train their muscles to increase their mental resilience. Here are a few proven mental training exercises to try:
- Box Breathing (4-4-4-4) is a technique used by Navy SEALs to calm their nervous system and improve focus and decision-making under pressure. Breathe in for 4, hold 4, out 4, hold 4.
- Mental Rehearsal is a widely used visualization technique that improves composure and clarity during high stress and intense moments that can help founders execute better. Competitive athletes use visualization for a wide range of sports; here's a pre-game hockey visualization for forwards as an example. Visualizations should not just be about success but also how to respond to failure and include a 'mental reset'.
- Cognitive Reframing can help founders avoid defaulting to 'this is a disaster', and instead to a new perspective such as "What does this change and make possible? Founders who can reframe adversity are more adaptable resilient under stress.
Mental fitness training should be done daily and not just during periods of heightened stress. Your companies resilience begins with you and your team's mental capacity.
Why This Matters
Chopra’s insights position chaos as a powerful stage at the edge of creativity, clarity, and courage. Fintech founders and C-suites who embrace uncertainty as a condition of insight and opportunity, and not just risk, will be the ones thriving in the future.
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, artificial intelligence, 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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OneVest Closes $20M Series B to Lead Wealthtech
Financing | April 11, 2025
Image: Freepik
OneVest Secures $20M in Series B to Build the Future of WealthTech in North America
On January 29, 2025, Calgary and Toronto-based fintech firm OneVest announced the close of a $20 million Series B round, led by Salesforce Ventures and joined by Allianz Life Ventures, TIAA Ventures, and returning backers like OMERS Ventures, Deloitte Ventures, Fin Capital, Luge Capital, and Pivot Investment Partners.
See: OneVest’s Rapid Expansion Powered by a $17M Funding Round led by OMERS Ventures
OneVest estimates that $84 trillion of wealth will be passed down from Baby Boomers to Gen X and Millennials over the coming decades, creating a massive opportunity and challenge for financial institutions. OneVest's platform is positioned to offer financial institutions, such as banks, insurers, asset managers and RIAs, a module tech platform to build or upgrade their wealth management services. Companies ca upgrade outdated infrastructure by plugging in only the components they need, reducing time and cost to market.
Amar Ahluwalia, CEO of OneVest:
“We are tackling massive challenges in an industry that’s been traditionally slow to adopt new technologies. Having such esteemed investors solidifies our position to reimagine wealth management technology for enterprises across the U.S. and Canada. With this new funding, we are poised to achieve our goal of becoming the leading wealth management platform in North America.”
Flexible, Smart, and Built for Scale
The OneVest platform offers financial institutions end-to-end wealth offerings or customized tools to match their requirements. Advisors can manage portfolios more efficiently with a hybrid experience that blends automated insights with human guidance. OneVest is investing in AI-powered decisions making tools and building out it's capabilities in alternative investments, helping firms better service their clients who are looking to diversify beyond traditional assets.
See: Wealth Management Insights for Fintechs and Investors
OneVest continues to strengthen its strategic partnerships with major players like BlackRock, Vanguard, and Salesforce Financial Services Cloud, helping expand its reach across the financial services sector. Since many clients use Saleforce, OneVest plans to further streamline the advisor-client experience across systems.
What’s Next for OneVest
With this funding, OneVest will focus on scaling operations, growing its team, and continuing product development. Its mission has been clear from the start. To become the leading infrastructure provider for wealth management in North America by providing financial institutions modern tools so they can keep up with the changing needs of their clients.
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, artificial intelligence, 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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Data Shows Tariffs Are Threatening Early Stage Innovation
Funding | April 10, 2025
Image: Freepik/rawpixel.com
Regulation Crowdfunding Markets Show Tariffs Straining Innovation Economy
Regulation Crowdfunding (RegCF) has proven to be a resilient market for early stage entrepreneurs and investors alike. When uncertainty strikes, it's often traditional venture capital that pulls back, while the community-driven model continues to offer early stage start-ups access to capital allowing them to innovate. However, just in from Sherwood (Woodie) Neiss, NCFA Advisor and Principal at Crowdfund Capital Advisors, data shows that tariffs are starting to strain RegCF markets - from March 10 to April 9, 2025:
- RegCF investment volumes declined by 24% (yoy) to just $57.48 million
- New campaign launches dropped over 40%
- Number of investor checks also declined by 15%
- Average capital raise size dropped to $720,000 (from $1.2 million)
Sherwood Neiss, Principal at Crowdfund Capital Advisors:
“We’re seeing the first real signs of pullback in what has otherwise been a resilient funding ecosystem. The numbers tell a story not of panic, but of pause. Investors and issuers alike are waiting for clarity—on costs, on policy, and on risk.”
Tariffs Introduce New Risks for Early-Stage Companies
In a volatile environment where U.S. tariffs are levied one day, and then paused the next, founders must now face new due diligence questions about supply chains, production costs, and their ability to manage sourcing.
See: Trump’s Tariff Pause Leaves Canada in the Cold
Image: Drop in Issuer Sentiment March 10 April 9, 2025 (Crowdfund Capital Advisors)
These aren't just theoretical risks because many start-ups, particular in hardware devices, consumer goods, and any sector relying on international parts and components are now exposed to volatility and surcharge taxes. Investor confidence is taking a major hit too, and early stage businesses run the risk of stalling or failing before they can scale.
“Tariffs may help some sectors, but they’re also putting early-stage companies under pressure at the exact moment they need capital the most. Many startups don’t yet have the scale to absorb these shocks. And without sufficient investor support, we risk losing not just companies, but jobs and innovation.”
Startups and Innovation Under Pressure
The adverse impact that tariffs have on innovators is especially acute in underserved and rural markets. These regions rely on RegCF since institutional capital remains scare. Retail investors are pulling back their investment participation in RegCF campaigns because of inflationary pressures and wage and job concerns.
See: CCA Report: State of Investment Crowdfunding 2025
Although digital native startups, such as software companies with lower capital requirements and no physical supply chains are more resilient in the current environment, the overall market uncertainty that tariffs have made investors more selective while pushing out campaign timelines.
Without policy intervention or more clarity, the negative implications of tariffs on RegCF markets may be severe, with fewer companies launched, fewer jobs, and reduced momentum for tech and manufacturing innovation across North America.
“This is a moment for policymakers, platforms, and investors to pay attention. We don’t need alarm, we need alignment. Investment Crowdfunding has been a powerful tool for democratizing capital. But it can’t thrive in a vacuum of uncertainty.”
Why It Matters
Public markets react quickly to interest rates or geopolitical shocks but RegCF is slower and more telling, as it signals what's happening on the ground.
See: Trump’s April 2025 Tariffs and What They Mean for Canada
Tariffs are elevating uncertainty risks related to cost structures, and its hurting investor sentiment. When early stage capital pulls back at grass roots levels, it hurts the innovation economy and the real cost is future growth.
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, artificial intelligence, 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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Trump’s Tariff Pause Leaves Canada in the Cold
Economy | April 10, 2025
Image: Freepik/tawatchai07
Trump Temporarily Halts Tariffs for Most Countries But Keeps Pressure on Canada, Mexico, and China
On April 10, 2025, President Trump announced a 90-day pause on most of the newly implemented global trade tariffs after market backlash and political pressure. The break was extended to countries in Europe, Asia, and parts of South America, but Canada, Mexico, and China are still under tariff pressure.
Strategic Pause, Not for Everyone
While Trump paused the most recent tariffs for over 75 countries, U.S. tariffs still apply to Canada and Mexico primarily on cars and auto parts (25%), steel (25%), aluminum (10%), and some agricultural products like dairy, grains, and processed foods, and continue to affect cross border trade in manufacturing and farming sectors.
Trump's pause also didn't apply to China In fact, Tariffs on Chinese good were raised to 125%, as China hit back with an 84% tariff on U.S. goods and filed new complaints with the World Trade Organization.
See: Klarna Delays IPO As Markets React to Trump’s Tariffs
After the tariff pause was announced, markets surged with the S&P 500 exploding 9.5%, the largest one day gain since World War II, according to Business Insider.
But the rebound didn't last long, as markets opened the following morning on April 10, the S&P 500 dropped 2.3% out of the gate and is continuing its slide currently down 5%.
Timing of the Pause Raises Eyebrows
Right before the tariff pause was announced, Trump posted on social media telling people “THIS IS A GREAT TIME TO BUY!!! DJT.” The DJT trading symbol referenced his Trump Media & Technology Group company. Hours later, markets soared. Some U.S. lawmakers are questioning whether Trump or anyone close to him benefited financially from his announcement (aka insider trading).
According to TIME, Senator Adam Schiff has called for an investigation, asking the White House to hand over records to see if anyone used that information to trade stocks before the news went public.
Innovation Caught in the Crossfire
Tariffs aren't just about physical goods. Canada’s fintech firms, software exporters, and digital infrastructure providers also face risks, as many of these companies work closely with U.S. partners, investors, and regulators. Every barrier, whether its through tariffs, compliance hurdles or market uncertainty and confidence, slows down innovation, especially in the most innovative emerging sectors like AI, open banking, blockchain and embedded finance.
See: Five Ways Countries Are Responding to Trump’s Tariffs
Early stage startups are especially exposed, as any cross border collaborations, capital raises, and pilot projects face second thoughts and/or delays from U.S. partners.
What’s next?
Expect heightened volatility to continue. Canadian companies need to stay alert, continue to diversify trade relationships, and build a stronger domestic economy and ecosystem that reduces exposure to abrupt, off the cuff U.S. policy changes impacting trade and relationships.
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, artificial intelligence, 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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Tailscale Raises $230M to Power Identity-First Networking
Funding | April 9, 2025
Image from Tailscale's Series C blog announcement
Toronto’s Tailscale Secures $230M and $2B Valuation for Identity-First Networking
On April 8 2025, Toronto-based Tailscale announced that they raised $230 million CAD Series C (about $160 million USD), valuing the company at approx $2 billion CAD. The round was made up of U.S. investors, led by Accel, CRV, Insight Partners, Heavybit, and Uncork Capital, along with some prominent individual investors notably George Kurtz CEO of CrowdStrike (returning investor) and Anthony Casalena CEO of Squarespace. New funds will be used to grow product and engineering teams, expand globally, and improved support for fast scaling customers.
Tailscale - A Shift from IP Addresses to Identity
Tailscale was founded in 2019 by former Google engineers Avery Pennarun, David Crawshaw, David Carney, and Brad Fitzpatrick, and officially launched in April 2020 to help users connect devices and apps securely without relying on traditional VPNs, IP rules, or firewalls.
Tailscale uses a technology called WireGuard which is easy to setup and lets devices connect directly to each other, safely and privately. What's unique about Tailscale is its approach to solving networking challenges. Instead of relying on where a device is located (IP address), it focuses on who or what is connecting. This approach is called identity-first networking, and is a more modern solution in a world where teams work remotely, apps operate across various cloud platforms, and security rules are becoming stricter.
See: AI Concierge Tech and the Future of Finance
So instead of trusting a device because it has a certain IP address, Tailscale checks and verifies the identity of every user, device, or service trying to connect, making it easier for companies working in the cloud. Models that rely on firewalls, assume that any device inside the network is trustworthy while the risk is outside. But today's networks are too distributed for that approach to hold up today, making identity-first networking a more flexible and secure alternative for modern times.
Avery Pennarun CEO Tailscale describes it as:
“You’re connecting to your app, your teammate, your service — wherever it happens to be running right now.”
Which sectors could be disrupted?
Tailscale's model reduces/eliminates the need for traditional VPNs, static firewall rules, and perimeter defence, placing VPN and firewall vendors on notice. Managed service providers on traditional network configuration, such as port forwarding, IP management or hardware firewalls, will be under pressure as they lose relevance, assuming the identity-first networking movement continues to grow.
See: Securing Your IoT Network Against Emerging Threats
Further, any 'zero trust' solution that still relies on IP allowlists or geography-based filters are also at risk. Identity-first networking is meant to offer real Zero Trust, cryptographic identity access across dynamic environments, a better fit for compliance teams needing continuous monitoring and real time enforcement.
According to Betakit, Tailscale is already being used by over 10,000 clients, such as fast growing AI and tech companies like Perplexity, Cohere, Groq, Mistral and Hugging Face, alongside enterprises like SAP, Instacart, Telus, and Duolingo.
Notable Absence of Canadian Capital?
Although Tailscale is proudly based in Toronto, none of the firms participating in this $230M Series C were Canadian, reflecting a troubling pattern of Canadian innovation meets U.S. capital.
See: How Secure Networking Can Protect Your Business Data from Threats
While deep liquidity and quick deployment of global funding accelerates Tailscale's growth, the lack of domestic institutional investors in large scale Canadian tech rounds raises questions about ecosystem competitiveness, strategic alignment and ultimately, ownership retention long term. It's great for Canadian fintechs to have this kind of access to foreign capital but a real hurdle to build stronger investment pipelines at home.
Why It Matters for Fintechs
As digital interactions and businesses become more complicated, they need better ways to keep things secure by focusing on who or what is connecting, not just where it's coming from. Financial technology companies deal with reams of sensitive data, multiple cloud deployments, third party integrations, and remote teams, and are key prospects for using an identity-first networking solution. One that's secure and can scale with real-time access control by identity (user, device, or service), improved auditability for KYC and compliance, and easier cross-border infrastructure. Fintechs should take a fresh look at how their systems are built, and retool if necessary. The future of security, compliance, and growth will likely rely on identity-based technology at the core.
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, artificial intelligence, 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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