Background: Access to Capital for Scale-ups
Lynn Johannson, Advisor, Sustainability and ESG
January 4th, 2024
Lynn Johannson, President of E2 Management Corporation and Catalyst for THE Collaboration
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Category Archives: NCFA Blog
FINTECH FRIDAYS Podcast: Season 4
JOIN US ON A STORYTELLING JOURNEY: SEASON 4
Welcome to Season 4 of NCFA Canada's Fintech Fridays podcast, your comprehensive guide to the ever-evolving landscape of fintech and funding. This season, we continue our storytelling journey, delving into a wide array of topics that are shaping the future of finance. Interested in participating? Contact us: info@ncfacanada.org
EP63: From Angel to Change-Maker: Investing with Impact
Featured Guest
MARCIA DAWOOD, Angel Investor, Advisor, Podcast Host, Author (LinkedIn)
Marcia Dawood is a leading early-stage investor and serves on the SEC’s Small Business Capital Formation Advisory Committee. She’s a venture partner with Mindshift Capital, a member of Golden Seeds, and Chair Emeritus of the Angel Capital Association (ACA). Marcia authored Do Good While Doing Well and co-produced the award-winning documentary Show Her the Money. As host of The Angel Next Door podcast and a TEDx speaker, she invests in over 50 startups, focusing on diverse companies solving global challenges. She holds an MBA from UNC Kenan-Flagler and lives in North Carolina with her family.
Book: Do Good While Doing Well
Do Good While Doing Well is a practical guide for those who want to create a meaningful impact through investing. Written by Marcia Dawood, this book explores how angel investing can be a powerful tool for change, extending beyond traditional charity. With insights shaped by her experience on the SEC's Small Business Capital Formation Advisory Committee, Marcia introduces readers to new opportunities made possible through regulatory changes, like equity crowdfunding, which allows investments in startups with as little as fifty dollars. This guide serves as a comprehensive "why-to" manual for those new to investing or those looking to align their investments with their values. It breaks down the mechanics of angel investing and shows how individual financial contributions can make a difference while offering the potential for financial returns. By the end, readers will be equipped with the knowledge and confidence to use their investments as a force for good, turning passion into impact.
About this episode
In this episode of Fintech Fridays, host Craig Asano sits down with Marcia Dawood, an influential angel investor, author, and advisor who serves on the SEC's Small Business Capital Formation Advisory Committee. Marcia shares her journey from her first angel investing meeting to becoming a key figure in the industry, supporting over 50 early-stage companies. The conversation dives into the differences between angel investing and venture capital, strategies for successful investments, and the evolving landscape of early-stage investing. Marcia also discusses her new book, Do Good While Doing Well, which guides readers through the balance of achieving financial returns while making a positive impact. Tune in to hear expert insights, the importance of fostering diverse investment ecosystems, and how new investors can start their journey with confidence. Enjoy!!
Duration: 57 mins | Full Transcript
Links
- Website: MarciaDawood.com
- Website: SEC's Small Business Capital Formation Advisory Committee
- Website: Mindshift Capital
- Book: Do Good While Doing Well (Amazon) | Overview
- Rap Battle: Angel Investor vs Venture Capitalist Rap Battle
- Podcast: The Angel Next Door podcast
- TedX: Marcia Dawood | TEDxCharlotte
- Article: The No. 1 thing entrepreneurs don’t spend enough time doing
EP56: How We Raised $426 million Using Rewards Crowdfunding
Today's Featured Guest:
ZACH SMITH, CEO and Co-Founder, Funded Today (LinkedIn)
About this Episode
Checkout this not to be missed episode with NCFA Founder Craig Asano and Zach Smith, CEO and Co-Founder of Funded Today. In 2017, Zach delivered a keynote at NCFA's Canadian Crowdfinance Summit in Toronto after raising $150 million dollars. Fast forward to today, and the Funded Today machine has raised north of $426 million USD and counting. In this episode, learn what it takes to be a serial entrepreneur -- "It's not really about how much money you raise on the platform, it's about what you learn from the money that you've raised." They discuss the story of Funded Today, pivoting, diversifying investments, being strategic, doing what you love, and of course how to raise millions of dollars with rewards-based crowdfunding including a couple of real life examples. If you have an innovative project, gadget or piece of hardware, or have an app or board game and want to know if you can crowdfund dollars for it in 2022, tune in now....grab a cup of your favourite and dig in. Enjoy! (FULL TRANSCRIPT)
EP55: Global Hiring Trends: How Gen Z Talent Thrives
Guest: ANNE-MARIE FANNON, Director, Work-Learn Institute, University of Waterloo (LinkedIn)
About this Episode
On this Season 4 kickoff episode, NCFA Founder Craig Asano sits down with the incredible Anne-Marie Fannon, Director, Work-Learn Institute at the University of Waterloo, to better understand the motivations and needs of the next major human capital resource - Gen Z. If you're a start-up, scale-up or HR professional seeking intel on an emerging tech savvy, innovative, and talent asset class then this podcast is for you. Tune in now and learn not just the how but also the why you should be building relationships with Gen Z today. Enjoy! (FULL TRANSCRIPT)
EP57: 10 Years of Investment Crowdfunding: Past, Present, and Future Since the Act
Featured Guests:
Peter-Paul Van Hoeken, Founder and CEO, FrontFundr
Alan Wunsche, CEO and Chief Token Office, Tokenfunder
Alixe Cormick, President, Venture Law Corporation
Sherwood Neiss, Principal, Crowdfund Capital Advisors
Andrew Dix, Founder and CEO, Crowded Media Group LLC
Kim Wales, Founder and CEO, CrowdBureau Corp
About this episode:
10 years ago in 2012, the Jumpstart Our Business Startups Act (JOBS Act) was signed into law in the U.S. (and eventually a similar exemption was approved in Canada) to encourage more capital to flow to startups, support innovation, and, create jobs. It's significance cannot be understated as the rule change allowed private companies to raise capital by selling securities digitally for the first time via registered online platforms and dealer-brokers. Regulation crowdfunding also democratized previously excluded retail investors (non-accredited) by allowing them to invest directly in startup ventures empowering a new era of digital finance.
A tremendous amount of advocacy and regulatory change efforts took place to make this happen, and since then, the original JOBS Act rules were improved for investment crowdfunding in the U.S., such as increasing the fundraising cap from US$1 million to US$5 million (not in Canada though, we've asked for years ahem). But there are still many challenges and myths to be debunked. While venture financings are at an all time high in sectors like fintech, it does not mean that startups are awash with capital. While there is growing interest among retail investors to participate directly in these offerings, and take control of their investment future, education and awareness still remains a top priority if industry is to grow in the right ways. Having said that, in the United States, RegCF recently surpassed $1billion raised. Canadian figures are more modest with at least CA$100 million in equity financings raised on a leading platform.
Today there's also a JOBS Act 2022 proposal on the table but will these changes be sufficient to support evolving technologies and their capabilities while also protecting investors? Regulatory change is slow and regulators should support innovation and competition. All stakeholders need to continue to support efforts to make capital markets whole, so EVERYONE can benefit from the advancements in technology or the wealth gap will continue to widen.
This is a not to be missed episode for anyone interested in the past or future of digital finance and capital markets. Join investment crowdfunding pioneers in both Canada and the U.S. who discuss the 10 year journey from a wide variety of perspectives including the evolution of first generation marketing platforms to the arrival of second generation decentralized finance models powered by blockchain technologies.
Duration: 92mins
EP58: Using Risk Management to Improve Your Business and Life
Featured Guest:
ALEX SIDORENKO, CEO and Chief Risk Officer / Founder, Risk Academy / Risk Awareness Week (LinkedIn)
About this episode:
For anyone who needs to make complex decisions or wants to add more clarity into their lives by applying modern risk management techniques, then this one is for you. Join NCFA Founder, Craig Asano, who sits down with Alex Sidorenko, the CEO and Chief Risk Officer of the Risk Academy and Founder of Risk Awareness Week, one of the largest risk management conference programs in the world. They discuss the commoditization of science, horoscope fairy tales, beating the bear and how intuition may not always be your best friend (in some scenarios). Understand the difference between risk management for ‘box tickers’ vs modern techniques, generators vs users, virtual data, and how to think about risk management to electrify decision-support for any problem in your business or life. Enjoy!
Duration: 69mins
EP59: Master Entrepreneurship with YEDI!
Featured Guest: MARIA KONIKOV, Director of Operations at the York Entrepreneurship Development Institute (YEDI) (LinkedIn)
About this episode:
On this week's episode of the Fintech Friday Podcast, our host Manseeb Khan sits down with Maria Konikov, Director of Operations at York Entrepreneurship Development Institute (YEDI). They talk about why education is crucial for entrepreneurs, how YETI offers tuition-free programs for Canadians, and what makes their diploma so special? Could it be because they have diploma program allows entrepreneurs to apply their learnings directly to their business and is taught by experienced professors who are also successful entrepreneurs? Enjoy!! (Full Transcript)
Duration: 25mins
EP60: Revolutionizing Small Business Lending and Empowering Entrepreneurs
Featured Guest
DAVID SOUAID, Chief Revenue Officer at OnDeck Canada (LinkedIn)
About this episode
In this insightful episode of "Fintech Fridays," we dive into the evolving landscape of small business financing with David Souaid, the Chief Revenue Officer of OnDeck Canada. David brings over two decades of experience in the fintech industry and shares his journey from co-founding Evolocity Financial Group to its merger with OnDeck Canada, illustrating his role in transforming small business lending. The discussion delves into the challenges and innovations in the industry, highlighting OnDeck's customer-centric approach, technological advancements, and future trends. David's insights reveal how OnDeck Canada is not just financing businesses but also empowering them to thrive in a dynamic economic environment. This episode provides a valuable perspective on the transformative world of fintech, especially in the realm of small business lending, and is a must-listen for entrepreneurs and industry enthusiasts seeking to understand the future of financial services. Enjoy!! (Full Transcript and Video)
Duration: 45mins
EP61: Making Markets and Investing in Crypto with the Phoenix App
Featured Guest
KAY KHEMANI, Co-Founder and Advisor, Phoenix App and Managing Director, Hatchworks
(LinkedIn)
About this episode
In this enlightening episode 61 of Fintech Fridays, NCFA Founder, Craig Asano, sits down with Kay Khemani, an investment professional based in London, UK, the Co-Founder of the Phoenix App, and Managing Director of Hatchworks. Kay shares his journey from high finance at Goldman Sachs to the forefront of fintech innovation. Explore the revolutionary Phoenix app, a platform that simplifies market making in the crypto world, allowing users to become liquidity providers and earn from transaction fees, all simplified through smart contract technology. Learn about the risks and rewards of DeFi, the impact of ETFs on crypto markets, and gather essential insights for both new and seasoned investors. Enjoy!! (Full Transcript and Video)
Duration: 62mins
EP62: The Future of Investment Crowdfunding: Innovations, Data, and Opportunities
Featured Guest:
SHERWOOD 'WOODIE' NEISS, Principal, Crowdfund Capital Advisors (LinkedIn)
About this episode
In this enlightening episode of Fintech Fridays, Season 4, Episode 62, host Craig Asano, founder and CEO of NCFA Canada, sits down with the distinguished Sherwood 'Woodie' Neiss, a pioneer in the investment crowdfunding industry and an advisor to NCFA. Together, they delve into the evolution of investment crowdfunding, its impact on startups and investors alike, and the potential for future growth. Woodie shares his journey, from the inception of crowdfunding regulations to leading the charge with data-driven insights and AI technology in investment strategies. Listeners will gain an insider's perspective on the latest developments, the significance of data in shaping the industry, and the role of technology in advancing investment opportunities. Whether you're an investor, entrepreneur, or fintech enthusiast, this episode offers a comprehensive look into the dynamic world of investment crowdfunding, revealing how it's reshaping the landscape of finance and opening new doors for innovation and growth. Enjoy!! (Full Transcript and Video)
Duration: 45 mins
SEASON 1 EPISODES:
EP1-Jul 20: Global Crypto Payments and the Future of Digital Assets (CoinPayments)
EP2-Jul 27: Canada's Role in the Global Fintech Ecosystem (Fintech Growth Syndicate)
EP3-Aug 3: Doubling Down on Female Founders (Roar Ventures)
EP4-Aug 10: Importance of a Smart Contract Safety Net (Sagewise)
EP5-Aug 17: First Coin's M&A Story - Wall street meets Crypto (Galaxy Digital Canada)
EP6-Aug 24: Asian Crypto Markets meet Canadian talent (Fintech Association of Hong Kong)
EP7-Aug 31: Structuring an ICO and the Mind of a Fintech-preneur (Pegasus Fintech)
EP8-Sep 7: Institutionalization of Crypto, China’s Ban and the Potential of Blockchain Decentralization (NexChange)
EP9-Sep 14: New SmartPay Product & Front-line of Global Digital Payments (Curexe)
EP10-Sep21: A Regtech-based Blockchain KYC Solution for Document Custody (Commercial Passport)
EP11-Sep 28: How Amazon Bank is Dominating and Risks of a Digital Bifurcated World (Schulte Research)
EP12-Oct 5: Building Blockchain Products & Decentralizd Solutions for Enterprise and Start-ups (Northern Block)
EP13-Oct 12: Road to Fintech IPO: Capital Networks, Scalable Solutions, Putting People First (Progressa)
Ep14-Oct 19: The Convergence of Data Intelligence and Money Algorithms (Senso.ai)
Ep15-Oct 26: Gearing up Hyperion Exchange, Hybrid Models and Security Tokens (Hyperion Technologies)
EP16-Nov 2: Envisioning the Future of Open Banking for Consumers and Businesses (Lending Loop)
Ep17-Nov 9: How Artificial Intelligence is Optimizing Sales and the Future of Business AI (Fortuna.ai)
Ep18-Nov 16: Bridging the AML/ATF Gap with Financial Institutions and the New Economy (Coinsquare)
Ep19-Nov 23: Future of Business Tokenization and How Blockchain Challenges Concept of Money (TokenFunder)
SEASON 2 EPISODES:
Ep20-Jan 11: Bitcoin Backed Loans and 2x Credit - Putting Your Crypto to Work (Mauricio Di Bartolomeo)
Ep21-Jan 18: Meritocracy, Decentralized Innovation and the Power of Collaboration (Hussein Hallak)
Ep22-Jan 25: Reducing Regulatory Burden by 25% in Ontario (Amar Nijjar)
Ep23-Feb 1: Getting Smart About Crypto and Insurtech Snapchat Models (Justin Hartzman)
Ep24-Feb 8: Re-imagining Philanthropy (Daryl Hatton)
Ep25-Feb 15: Unlock the World (Kate Guimbellot and Jason Sosnowski)
Ep26-Feb 22: Investing in Private Canadian Companies (Peter-Paul Van Hoeken)
Ep27-Mar 1: Blockchain Gaming and esports (Shidan Gouran)
Ep28-Mar 8: Rethinking Brokers (Muhammad Rashid)
Ep29-Mar 22: The Future of Securities (Richard Carleton)
Ep30-Apr 12: The Future of Canadian Crypto (Andrei Poliakov)
Ep31-May 14: Blockchain Law (Jason Saltzman)
Ep32-May 24: Rallying behind Bitcoin (Frederick T. Pye)
Ep33-May 31: Indexing Consumer Loans and Financial Literacy (Phillip Postrehovsky)
Ep34-Jul 6: Accelerating Fintech Growth (Brendan Holt Dunn)
Ep35-Aug 9: Autonomous Alternative Lending (Vit Arnautov)
Ep36-Aug 22: Techfins (Michael King)
Ep37-Sep13: Funding is Female (Jill Earthy)
Ep38-Mar25: Why Identity Matters in an Evolving Online Environment (David Lucatch)
Ep39-Apr23: The Power of Digitization and How to Get Exponential (James Wallace)
Ep40-May22: Why Bitcoin Exists and Education for the Masses (Austin Hubbell)
SEASON 3 EPISODES:
EP41: 40% pandemic growth, taking risks and innovating Insurtech in Canada (Danish Yusuf, Zensurance)
EP42: Insights into the Teen Banking Sector and Improving the Financial Well-being of Families (Rim Charkani, WALO)
EP43: Taking the Mortgage Process From 40 Days to Minutes (Chris Gries, FundMore.ai)
EP44: The Vanguard of Digital Innovation and Ecosystems in Canada (Various NCFA Advisors)
EP45: Mission-driven and Consumer-centric Financial Services (Keith Taylor, DUCA Impact Lab)
EP46: Making Business Borderless: International Payments and Partnerships (Alastair Thompson, TransferWise)
EP47: How to Change the World: Risk Culture and Work-life Balance (Michelle Beyo, Finavator)
EP48: How to Connect and Resonate with Customers Through Podcasting (Fatima Zaidi, Quill Inc.)
EP49: Managing Private Placements Has Never Been Easier (Brock Murray and Karan Khiani, Katipult)
EP50: Compliance to the moon (Mark Binns, Digital Assets Inc.)
EP51: Bacon and Eggs (Julien Brault, Hard Bacon)
EP52: Technology Due Diligence Process and Cyber Security Risks (Forward Security, CIBC, RiskAware Group)
EP53: Staying True to Bitcoin (Chris Naprawa, TAAL)
EP54: How Digital Identity will Transform Human Potential (David Lucatch, Liquid Avatar Technologies)
SEASON 4 EPISODES:
EP55: Global hiring trends: How Gen Z Talent Thrives (Anne-Marie Fannon, Work-Learn Institute, University of Waterloo)
EP56: How We Raised $426 million Using Rewards Crowdfunding (Zach Smith, Funded Today)
EP57: 10 Years of Investment Crowdfunding: Past, Present, and Future Since the Act (Expert Advisors)
EP58: Using Risk Management to Improve Your Business and Life (Alex Sidorenko)
EP59: Master Entrepreneurship with YEDI! (Maria Konikov)
EP60: Revolutionizing Small Business Lending and Empowering Entrepreneurs (David Souaid)
EP61: Making Markets and Investing in Crypto with the Phoenix App (Kay Khemani)
EP62: The Future of Investment Crowdfunding: Innovations, Data, and Opportunities (Sherwood 'Woodie' Neiss)
Interested in getting involved in FINTECH FRIDAYS? info@ncfacanada.org
FINTECH FRIDAY$ is a weekly podcast brought to you by NCFA and partners, where we sit down with the incredible people in the Fintech and Funding community and talk about trends, product innovations, developments and challenges!
Fintech Fridays is an evolving and innovative educational platform focused on delivering authentic personalities, content and story telling on the journey of mainstream adoption of new financial technologies and their impact on the future of finance.
Subscribe and tune in each Friday to check out the latest movers and shakers. Want to get involved? Contact us about partnerships opportunities, hosting and more: info@ncfacanada.org
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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Support NCFA by Following us on Twitter!Follow @NCFACanada  |
NCFA Announces 7th Annual FFCON21 Digital ‘Breaking Barriers’ FinTech Conference
NCFA Canada | FFCON21 Team | March 11, 2021
FFCON21 to connect HR talent and explore accelerated Fintech trends and innovations paving the way to mass adoption and scale
TORONTO — March 11, 2021 — The National Crowdfunding & Fintech Association (NCFA), organisers of Canada’ foremost Fintech conference, is pleased to announce the return of FFCON for its 7th consecutive year. The annual FFCON Digital Event, held in association with Toronto Finance International (TFI), will take place May 11-13, 2021.
Building on the success of previous conferences, this year’s event -- titled ‘Breaking Barriers’ -- will bring together an international community of leading voices in fintech, digital banking, tokenization, blockchain, CBDCs, digital identity, AI, capital markets innovation, EDI (equality, diversity and inclusion) and sustainable, open, and alternative finance.
“Fintech is evolving quickly and breaking barriers,” said Craig Asano, Founder and CEO of the National Crowdfunding & Fintech Association of Canada. “Fintech is no longer niche -- it is a permanent technological evolution that is changing the world of finance by high growth fintech companies and incumbent financial institutions. It’s rewiring financial services for the new economy and setting new standards that also demand new regulations. Most importantly, it’s about improving access and delivering better financial products, services and outcomes for everyone especially consumers and small to midsize enterprises (SMEs).”
The theme of FFCON21 reflects the growth and challenges that the Canadian Fintech industry has had to navigate through to foster scalability and mainstream adoption, made all the more complicated through the disruption caused by Covid-19.
“Our Fintech ecosystem has become a great strength in the greater Canadian innovation landscape. COVID-19 has accelerated the pace of change in the industry and highlighted the important role digital innovation plays in the competitiveness of the financial services sector. Rapidly changing consumer habits and ways of delivering products and services offers a significant opportunity for Canadian Fintechs" Jennifer Reynolds, President & CEO, Toronto Finance International
Beyond covering important fintech topics, FFCON21 will offer an engaging and fast-paced interactive agenda, including investor speed dating, sports-inspired Fintech Draft pitching and demo competitions designed to identity and feature emerging fintech stars, debates, round table discussions, digital ebooths and virtual expo, 1-on-1 networking opportunities and unique experiences. Delegates and partners can build their knowledge base, launch or scale an idea or collaborate digitally with visionary entrepreneurs and investors.
New to FFON21 this year, organizers are adding an HR fintech talent marketplace to connect anyone seeking new opportunities with high growth companies, and a ‘deep dive’ masterclass series on the topic of decentralized finance as part of its quarterly Global Fintech Now program for VIP passholders.
The multi-day event will run from May 11-13 inclusive with daily content to span feature themes of Digital Innovation and Breaking Barriers, Creation & Growth and Global Future Forward. Updates to the evolving programme and speaker lineup can be found on the FFCON21 website.
Registration Now Open
Registration for FFCON21 Breaking Barriers is now open with special early bird rates for delegates, exhibitors and startup packages available for a limited time. Tickets can be purchased at https://fintechandfunding.com/tickets/.
Useful Links
Fintech Draft Pitching & Demo Application
Website | Experience | Partner Packages
Connect with us
About the NCFA
The National Crowdfunding & Fintech Association (NCFA) 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 and cryptocurrency, Regtech, and Insurtech sectors. To learn more about NCFA visit www.ncfacanada.org
About Toronto Finance International
Toronto Finance International (TFI) is a public-private partnership between Canada’s three levels of government, the financial services sector and academia. TFI’s mission is to lead collective action that drives the competitiveness and growth of Toronto’s financial sector and establishes its prominence as a leading international financial centre. For more information, please visit: www.tfi.ca
About FFCON
FFCON21 (Fintech and Financing Conference) is an annual conference hosted by Canada’s National Crowdfunding and Fintech Association (NCFA). Now in its seventh year, FFCON21, held in association with Toronto Finance International, will bring together professionals and innovators in fintech, open banking, digital identity, blockchain, cryptocurrency, AI, capital markets innovation, sustainable and alternative finance.
Further information about the conference can be found at www.fintechandfunding.com
FFCON21 Contacts
Craig Asano
Founder and CEO, NCFA
casano@ncfacanada.org
(416) 618-0254
Partnership Inquiries
Lauren Linton
Advisor, NCFA
lauren@ncfacanada.org
(416) 569-4349
Media Contact
The Top Floor Public Relations
Michele McDermott-Fox
michele@thetopflooragency.com
(905) 379-1893
David Lewis
david@thetopflooragency.com
(905) 541-5699
CSA Responds to Ontario Capital Markets Modernization Taskforce Report: NCFA – The present system is simply not good enough
Last month, the Capital Markets Modernization Taskforce in Ontario, Canada, issued its final report as to how to improve capital formation and affiliated economic growth and prosperity. The Taskforce’s goal was to “address the issues of tomorrow’s capital markets with bold and innovative recommendations that will make Ontario one of the most attractive capital market destinations globally.”
The document encompassed meetings with multiple stakeholders and feedback from more than 130 stakeholders. In brief, the feedback indicated that “the time for change is now.”
While Ontario is not all of Canada it is the most active province in the financial services sector. Anything that Ontario pursues is of interest to the rest of the country. The objective is to “amplify growth and competitiveness in Ontario’s capital markets” in a time when private markets are growing in importance and public markets have dimmed a bit.
See: NCFA Response to the Modernizing Ontario’s Capital Markets Consultation Taskforce
In all, the Taskforce put together 70 different recommendations. The entire report is available below. Competition and innovation is key to succes – including online capital formation and other forms of Fintech. To quote the Taskforce:
“… financial technology (Fintech) emerged as competition to traditional and incumbent financial services. For example, crowdfunding platforms supplanted some traditional financial intermediaries by allowing peer-to-peer money exchange with minimal advice to investors. Robo-advisors facilitated a new, electronic medium for easy access to diversified portfolio services. Cryptocurrency has the potential to disrupt the intermediary role of traditional banks. However, similar to other Fintech, cryptocurrency is largely unregulated and does not provide the same quality of investor protection as other investments. Such new emerging trends will need to be incorporated into regulatory frameworks, potentially initially through regulatory sandboxes and eventually through formal regulation.”
Ontario Capital Markets Authority?
While regulation may be needed it must be flexible enough to empower innovation and not stifle it explained the report. “A more optimal balance between innovation and regulation is necessary for Ontario’s capital markets to succeed in the future.” The authors advocate dramatic change that would impact Ontario’s current capital markets legislation. The recommendations include altering the mission of the Ontario Securities Commission (OSC) to include a mandate of fostering capital formation and competition – somewhat similar to what the regulators must do in the UK. Currently, the OSC’s mission is more aligned to those in the SEC of investor protection and pursuing fair and efficient markets.
See: NCFA Fintech Confidential Magazine (Issue 3)
Interestingly, the Taskforce recommends a similar approach as the SEC’s Office of the Advocate for Small Business Capital Formation and its Strategic Hub for Innovation and Financial Technology – two fairly new entities. The OSC Innovation Office should “place a primary strategic focus on facilitating economic growth and innovation, including fostering and testing new and innovative methods to improve transparency in financial product intermediation.”
There is plenty more in the document including recommendations on investor protection and enforcement as well as Regtech and Open Banking efforts.
This past week, the Canadian Securities Administration (CSA) issued a formal response to the report. The CSA represents each provincial securities regulator. The group, with the exception of the OSC, commended the work completed by the Taskforce and said it “believe(s) it will be very useful to bolster our collective reflection on how to advance the Canadian securities regulatory regime.” But while lauding the work, the CSA criticized any attempt to implement changes outside of CSA mechanisms as this would “risk creating inter-jurisdictional friction and adding regulatory burden on market participants across Canada.” The CSA pointed to the absence of a passporting regime between the provinces
“… we urge the Ontario Finance Minister to act in the best interest of all Canadian market participants and adopt the passport rule,” said the CSA.
The CSA also pointed to an “imbalance” in regards to focusing on vibrant and efficient markets without “commensurate attention” to investor protection initiatives.
To quote the CSA:
“In conclusion, we are fully supportive of cooperative efforts to modernize and streamline the regulation of the Canadian capital markets while delivering robust investor protection through the CSA. To achieve these goals, Ontario should join the passport system and the Taskforce’s recommendations that have policy implications across Canada should be integrated into the CSA’s robust and well-established process for the benefit of all Canadian market participants.”
See: CSA Responds to the Modernization Taskforce Final Report and Encourages Ontario to Adopt Passport Rule to Eliminate Unnecessary Burden
Crowdfund Insider reached out to the National Crowdfunding and Fintech Association (NCFA) in Canada for feedback on the report. The NCFA contributed a comment to the Taskforce back in late 2020. Craig Asano, founder and long-time Executive Director of the NCFA said:
“The NCFA strongly believes that open finance will bring more competition and innovation, including intellectual property, to financial services and products. It will increase competitor offerings and give consumers more choice and control over their data and financial ecosystem. However, without the full support of the incoming OSC chair and cooperation among all CSA members for a harmonized and streamlined regulatory culture, Canada risks losing (even) its fast follower status as other global jurisdictions welcome a brave new world.”
Robin Ford, NCFA Advisor on Governance and Regulation, added that the NCFA is firmly in support of a competitive objective:
“… this CSA announcement is otherwise to be welcomed,” said Ford. “As NCFA has advocated, moving to a passport system for all of Canada along with a more sophisticated, inclusive, and transparent regulatory decision process would be a significant step in the right direction. All the Canadian regulators need to work together to drive forward the sorts of improvements recommended by the Taskforce much more quickly, whether through a single cooperative regulator or not, to better support businesses, capital markets, and the wider economy. The present system is simply not good enough.”
See more: NCFA Voice and Advocacy
While it appears that many stakeholders agree on the need for change there are some differences and not everyone embraced the far-reaching recommendations.
A write-up in the Financial Post slammed the Taskforce’s document as “not the market fix Canada needs” describing the report as “falling short.” The comment criticized two “trendy” recommendations on ESG reporting and diversity targets.
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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NCFA’s Fintech Confidential Issue 3 (Dec 2020) is here! Happy Holidays…
NCFA | Craig Asano | Dec 17, 2020
Dear Global Fintech & Funding Communities,
The National Crowdfunding & Fintech Association of Canada (NCFA) and partners are excited to present Vol. 1 Issue 3, FINTECH CONFIDENTIAL, a digital pop-up of the 6th annual 2020 Fintech & Financing Conference and Expo (FFCON20) held virtually across themed 8 weeks from July 9 to August 27 and co-hosted by NCFA and Toronto Finance International.
The main theme of FFCON20 was “RISE”, reflecting the joint efforts of the two associations, NCFA and TFI, to build and increase the success and sustainability of Canada’s fintech and financial sector. There were many moving parts this year and a brand-new digital format with the event bringing together 100+ thought leaders, 50+ partners, and more than 500 attendees, 2 challenges and the inaugural Fintech Draft pitching and demo competitions. Congratulations to the winners: SolidBlock and MazumaGo (formerly DivDot)! Thanks to all the partners, speakers, attendees, volunteers and the entire organizing team for making FFCON20 an impactful and amazing online experience for Canada’s fintech and funding community.
Despite a challenging year for many, the fintech industry continues to demonstrate its resilience, creative capacity, and thirst to create valuable partnerships and financial products/services that benefit millions of consumers, small businesses, and the economy. As covid accelerates the adoption of digital trends, it has spotlighted the social and economic gaps that saw fintechs pivot to work on supportive solutions from mobilizing low-cost capital campaigns to personal finance apps that help users better manage their finances, spending, savings, and investment habits.
Digital identity, CBDCs (and digital assets), AI, and sustainable finance are all taking off as governments and industry work to collaborate on overhauling Canada’s digital infrastructure, data rights, privacy and standards that will set the stage for years to come. The second round of open banking consultations that were delayed due to the pandemic were suddenly announced in November with many organizations, fintechs and incumbent banks coming together to discuss the scope, governance, implementation, and accreditation of a made in Canada OB solution. We urge the OB committee to remain laser-focused on consumer interests while looking globally for insights to implement a principles-based, inclusive, broad-scoped and competitive framework as swiftly as possible.
We hope you enjoy this issue of Fintech Confidential magazine – it certainly makes for great holiday reading! While everyone relentlessly strives to achieve success in 2021, we encourage you to bring in the new year with good health and to be mindful that we are all in this together, and to help others in your community more than ever before. Peace, happiness, and best wishes for an incredible year and journey ahead.
All the best
Craig Asano
Founder and CEO
NCFA Canada
Check out the magazine --> 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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December 2020 Magazine: NCFA Fintech Confidential (Vol 1. Issue 3)
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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NCFA OpEd: Canada’s Open Banking Consultations: Let’s Get it Done!
NCFA Canada | Dec 3, 2020
Open banking is about giving Canadians control over their banking data to allow them to take advantage of data-driven financial services offered by third parties. But what exactly does that mean?
Imagine giving Canada Post the key to your house to deliver a parcel, rather than leaving it securely in a mailbox. The same situation may happen when sharing your banking data with a third-party. While some provide a secure mailbox accessed using an application programming interface, other require consumers to divulge their user name and password to a stranger. Open banking regulation would provide consumers with a secure and standardized way to share data and access valuable financial advice, products or services.
This week Finance Canada’s Open Banking Advisory Committee (OBAC) is holding the second phase of consultations. OBAC is meeting with banks and financial institutions, financial technology (fintech) companies, industry associations, and other stakeholders coast-to-coast. Five three-hour sessions take place from November 30 to December 17 to review the proposed framework, covering data standards, privacy, cybersecurity, accreditation, and more.
See: MOF: Consumer-directed finance: the future of financial services
This is welcome news after the almost two-year delay since the first consultations were launched in January 2019. Canada’s foot dragging continued despite the June 2019 recommendation from our Senate Banking Committee that “The federal government must give Canadians the means to share their financial data safely and securely by facilitating what’s called open banking”.
See: Senate of Canada, “Open Banking: Protecting Canadians’ financial information”, June 19, 2019, https://sencanada.ca/en/info-page/parl-42-1/banc-open-banking/#collapse-item3.)
The hold up continued through the COVID-19 pandemic, when Canadians turned to digital platforms to manage their personal finances as never before.
The OBCA understands the urgency to get this regulation in place. We agree. It is time to pass open banking legislation that provides access to innovative financial services while protecting consumer-welfare, similar to what exists in the EU, UK and Australia.
The National Crowdfunding & Fintech Association of Canada (NCFA) has long advocated for consumer-centric financial services that increase consumer choice. Canadians deserve competitive and transparent pricing. They deserve regulation that is proportionate to the risks and rewards. We support innovations that increase financial inclusion, address bias and discrimination, and create jobs. We want our fintechs to succeed at home and abroad, alongside other Canadian technology success stories.
The UK has been a leader, passing open banking legislation in January 2018 to increase competition and promote innovation in financial services. The Financial Conduct Authority (FCA) is the government regulator responsible for protecting consumers. The FCA has set open banking standards and publishes a list of approved providers. This agency has been proactive, for example targeting data brokers who aggregate and sell consumer data. The UK has set the model for Canada to follow.
See: Global Risk Institute Report: Discussing Open Banking Regulation for Canada
The OBAC will recommend Canada’s open banking solution to the Finance Minister. A successful launch will require one entity to be responsible for the roll-out. It will require harmonized rules across Canada to avoid a provincial patchwork. Licensing and compliance costs should encourage competition and not simply favour incumbents, in line with the February 2019 submission from Canada’s Competition Bureau.
Education and effective communication will be critical. Regulators cannot rely on consumers to educate themselves, which was tried and failed with equity crowdfunding. To boost public confidence, we need a public awareness campaign that highlights the benefits of open banking and the steps being taken to protect consumers.
Canada’s framework needs to recognise international standards and avoid being siloed. To this end, OBAC should incorporate the work of the Standards Council of Canada on industry-wide standardization strategies for data governance. We need a future-proofed framework that will support a globally competitive financial system.
The open banking train has left the station. Canada risks being left behind if we don’t act now. The greatest risk is inaction. Passing open banking legislation will allow Canada to advance to a financial future that puts the needs of consumers first.
Craig Asano is the Founder and CEO of NCFA Canada. Prof. Michael R. King is a NCFA Advisor and Richard Remillard is a NCFA Board Member.
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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Report: Access to Capital for Canadian Growth-Orientated Medium-Size Firms
RCG Group | Richard Remillard and Michael Scholz | Oct 15, 2020
Background: Access to Capital for Scale-ups
Canada has an SME and start-up ecosystem that is healthy in many respects, ranking second globally in ease of starting a business, but seemingly falls in short scaling growing businesses into globally competitive anchor firms, as fewer than 2% of Canadian mid-sized firms grow into large firms in any given year.1 As a result, SM Es account for about 90% of business sector employment in Canada2 versus 47% in the United States3, a fact that accounts for about 20% of the labour productivity gap between Canada's business sector and that of the United States.
Ambitious, medium-sized firms require access to affordable sources of growth capital to be able to invest in activities (e.g. hiring talent, building infrastructure, and developing new technology) necessary to grow into globally competitive leaders. Evidence of stronger demand for such growth equity has been noted by the BOC, which expects its Growth & Transition Capital offerings to increase by 8% annually through fiscal 2024.
See: Ontario’s Capital Markets Modernization Task force report draws criticism
Despite this, the financing challenges and opportunities surrounding medium-sized, higher-growth companies generally remain poorly understood relative to financing of small, early-stage growth companies. As such, this paper specifically focuses on the availability of flexible financing required by medium-sized firms looking to scale up and grow, such as minority equity, debt, or hybrid financing.
Informed by extensive interviews conducted by the Remillard Consulting Group with capital providers and corporate executives (Annex 1), the following captures stakeholder insights into the state of Canada's growth and transition capital markets, including: challenges inhibiting the availability of growth capital for medium-sized firms; common misperceptions concerning Canada's growth capital and alternative risk financing markets; and the continued role of the BOC in this rapidly evolving market.
Take-aways
Though Canadian policymakers have developed a robust understanding of the financing challenges faced by growth firms at earlier stages of development, less is understood about how growth capital markets work to finance medium-sized, growth-oriented firms. Following a decade of considerable growth in the sector, corporate executives and capital suppliers noted certain emerging trends important for policymakers to understand, including:
See: NCFA Response to the Modernizing Ontario’s Capital Markets Consultation Taskforce
- The emergence of a relatively porous three-tier capital market structure in Canada to meet the unique needs of Canada's growth-oriented, medium-sized firms composed of both foreign and domestic sources of capital supply with Tier 1 capital dominated by foreign suppliers, who are less present at Tier 2 and are markedly absent from Tier 3.
- Public capital markets partially compensate for the absence of foreign capital providers at Tiers 2 and 3; in the same vein, retail investors can and do participate in financing Tier2 and 3 companies also via private placements or as incented via Labour-SponsoredVenture Capital Corporation Tax Credits (mostly in Quebec).
- Rural companies confront several obstacles ranging from distance, to the absence of specialized finance personnel, to the reliance on natural resources industries.
- Country or province-wide 'branch' networks as exemplified by the big banks, BOC, CBGF, the Fonds Regionaux de Solidarite and Caisses Desjardins appear to be important to Tier2 and Tier 3 company fundraising efforts, especially for non-technology companies.
- Certain industries are fashionable capital magnets while others, distinctly unfashionable, repel capital. Technology, broadly understood, is a capital magnet as has been cannabis. Oil and gas, forestry and hard rock mining have been the reverse.
- A very limited number of smaller private sector funds have expressed concerns about BDC's activities in this portion of the mid-market - with BDC increasing activity to address funding requirements in this area, they risk getting squeezed out.
- A lack of consensus about the impact of US capital in the market divides capital providers and company executives alike. Some refer to the current pattern of US fund investment into more-established and resilient companies as insulating these firms from a sudden withdrawal of that funding. Others note that in today's technology-driven world, Canada risks losing its future high potential job-creating and export-oriented champions.
- Certain investors remarked that any future economic downturn may result in US funds prioritizing their own domestic investments over foreign ones as has occurred in the past. This, in turn, may result in a funding squeeze as Canadian domestic funds generally do not have the financial flexibility to meet these gaps as many companies in the technology space experience high burn rates of capital.
- It is impossible to determine one way or another whether the presence of large American investors is a net-benefit to the Canadian economy. Resolution of this controversy would likely require an examination of the post-investment record in terms of direct and indirect job creation, intellectual property development and export performance of companies that have received foreign or domestic capital injections.
Download the Report (24pg PDF) --> here
Or Interact with the report on the Government of Canada's website --> 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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Support NCFA by Following us on Twitter!Follow @NCFACanada |
