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NCFA Fintech Confidential October 2021 (Issue 4)

The National Crowdfunding & Fintech Association of Canada (NCFA) and partners are excited to present Vol. 1 Issue 4, FINTECH CONFIDENTIAL, a digital pop-up of the 7th annual 2021 Fintech & Financing Conference and Expo (FFCON21) held virtually from May 11-13 and co-hosted by NCFA and Toronto Finance International (TFI). As global economies strive to contain the latest Covid outbreak and recover fragile sectors, fintech innovators continue to ‘BREAK BARRIERS’, the main theme of this year’s conference, and the second year in partnership with TFI, reflecting the growth and emerging challenges that the Canadian Fintech industry must navigate to achieve mass adoption and scale. It’s been another unprecedented year with covid accelerating trends such as bitcoin’s institutionalization, the growing power of retail investors, the 2nd round of Open Banking consultations and the advisory committee’s recommendations to the federal government, payment modernization efforts, adoption of harmonized Crowdfunding regulation, AI roadmap, emergence of digital identity as a ‘right’ and core data infrastructure (ie., vaccine passports), growing support for Purpose (not just shareholder profit), green finance solutions tackling shared global problems such as SDGs and climate change, EDI (equality, diversity and inclusion), and regulatory push back and a firm ‘line in the sand’ for Big Tech. FFCON21 was a successful event attracting over 100+ thought leaders, 75 partners, 500+ attendees, an NFT charity fundraiser in partnership with CanadaHelps for front line workers, and our second annual 2021 Fintech Draft competition -- a pitching event inspired by sports league drafts and designed to identity emerging high growth fintech ventures. A hearty congratulations to the winners: Agryo (Overall) and Copia Wealth Studios (People’s Choice)! Thank you to all the partners, speakers, attendees, volunteers, and the entire organizing team for making ‘Breaking Barriers’ an impactful and amazing online experience and for being part of Canada’s fintech and funding community. We hope you enjoy reading this special edition of Fintech Confidential.

The National Crowdfunding & Fintech Association of Canada (NCFA) and partners are excited to present Vol. 1 Issue 4, FINTECH CONFIDENTIAL, a digital pop-up of the 7th annual 2021 Fintech & Financing Conference and Expo (FFCON21) held virtually from May 11-13 and co-hosted by NCFA and Toronto Finance International (TFI).

As global economies strive to contain the latest Covid outbreak and recover fragile sectors, fintech innovators continue to ‘BREAK BARRIERS’, the main theme of this year’s conference, and the second year in partnership with TFI, reflecting the growth and emerging challenges that the Canadian Fintech industry must navigate to achieve mass adoption and scale.

It’s been another unprecedented year with covid accelerating trends such as bitcoin’s institutionalization, the growing power of retail investors, the 2nd round of Open Banking consultations and the advisory committee’s recommendations to the federal government, payment modernization efforts, adoption of harmonized Crowdfunding regulation, AI roadmap, emergence of digital identity as a ‘right’ and core data infrastructure (ie., vaccine passports), growing support for Purpose (not just shareholder profit), green finance solutions tackling shared global problems such as SDGs and climate change, EDI (equality, diversity and inclusion), and regulatory push back and a firm ‘line in the sand’ for Big Tech.

FFCON21 was a successful event attracting over 100+ thought leaders, 75 partners, 500+ attendees, an NFT charity fundraiser in partnership with CanadaHelps for front line workers, and our second annual 2021 Fintech Draft competition -- a pitching event inspired by sports league drafts and designed to identity emerging high growth fintech ventures. A hearty congratulations to the winners: Agryo (Overall) and Copia Wealth Studios (People’s Choice)!

Thank you to all the partners, speakers, attendees, volunteers, and the entire organizing team for making ‘Breaking Barriers’ an impactful and amazing online experience and for being part of Canada’s fintech and funding community. We hope you enjoy reading this special edition of Fintech Confidential.

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e an emergence of alternative lending<br />

options, pushing lenders to compete<br />

on price, demographics and ancillary<br />

product offerings. Additionally new<br />

offerings such as revenue base financing,<br />

and buy-now-pay-later, are received<br />

with greater comfort by investors and<br />

customers alike. As such, while looking<br />

into alternative financing options and<br />

recognizing the lack of options for first<br />

time buyers in a surging real-estate<br />

market, we invested in a new financing<br />

product of:<br />

a) FirstStep Financial firststepfinancial.<br />

ca: Opening the Door to Home<br />

Ownership. Digital Lending<br />

3. The I EARN Webinar explored the<br />

opportunities and trends within Digital<br />

Assets, Investment & WealthTech<br />

industries. For instance, A survey<br />

conducted by the Alternative Investment<br />

Management Association and SS&C<br />

found that out of 100 global hedge<br />

fund managers, 69% of the market<br />

leaders use alternative data to boost<br />

performance. Also considering property<br />

earning assets, the real estate market<br />

showed no sign of slowing, and real<br />

estate sector funding appeared to be<br />

making a comeback early in the year,<br />

with VC funding to proptech companies<br />

growing 29% to $2.4B for Q1’21. Given<br />

the need for better solutions in trading<br />

and real-estate, we invested in:<br />

a) CityFalcon cityfalcon.com: Using Big<br />

Data, AI, and NLP, we democratize<br />

access to financial content, personalize<br />

it, add analytics, and deliver it in realtime<br />

in 50+ languages. Capital Markets<br />

b) Reitium reitium.com: REITIUM is a<br />

blockchain real estate marketplace<br />

where everyone can be an investor<br />

starting with $100. PropTech<br />

over $6 billion in funding. The number<br />

of deals (114) increased by 50%, with 18<br />

mega-rounds accounting for over 75%<br />

of the total funding. From a banking<br />

side, according to Accenture, over<br />

50% of banking tasks are still manually<br />

performed. By using technology, banks<br />

in North America can save more than<br />

70 billion USD through 2025. Not only<br />

can technology improve the bottom line<br />

for banks, but we are witnessing better<br />

customer centric designs to better tailor<br />

and serve niche demographics and<br />

communities. As such, we invested in the<br />

following payment and niche banking<br />

companies:<br />

a) Payzel payzel.com: Forged out of<br />

frustration we are building the GE<br />

Capital for Innovative Industries like<br />

cannabis. Digital Payments<br />

b) Phaze phaze.io: A prepaid payouts<br />

API for fintechs. Digital Payments<br />

c) PeopleHedge peoplehedge.<br />

com(MAYBE)<br />

The Holt Xchange has just invested in 8 of<br />

the best fintechs that build solutions for our<br />

society’s greatest challenges. They kickedoff<br />

their Growth Acceleration Program and<br />

are already in the process of working closely<br />

with the portfolio companies and leveraging<br />

their global advisory network to help drive<br />

their business growth.<br />

I am very excited to work<br />

with this year’s portfolio<br />

investments, complemented<br />

with 500+ Advisors, and to have<br />

the backing of key partners<br />

like Fairstone, RBC, MNP, BDC<br />

and Montreal International.<br />

stated founding managing<br />

partner Jan Arp.<br />

IN FOCUS<br />

4. While not a webinar in itself, the theme<br />

of I TRANSFER emerged throughout<br />

the series, focusing on payments and<br />

banking. Payments remains the largest<br />

attraction for VC investment, whereby<br />

funding for payments companies tripled<br />

compared to the previous quarter, with<br />

If you are interested to learn more about us,<br />

or meet our portfolio companies or Advisors<br />

highly suggest you attend our <strong>Fintech</strong> Show<br />

<strong>2021</strong> either remotely or in-person: <strong>Fintech</strong><br />

Show <strong>2021</strong>.<br />

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