Welcome to the FinTech Times, a weekly newsletter covering the biggest FinTech news from around the globe. If you want to read F|T before anyone else, make sure to subscribe using the form at the bottom of this page.
CB Insights report says the bottom fell out of Canadian FinTech funding in Q2 2022 (BETAKIT)
Q2 2022 saw a dramatic 70 percent drop in FinTech funding YoY. Canada also had the second lowest number of FinTech deals in the quarter, beating only Australia.
Power Corp’s Portage closes US$655M VC fund as tech values fall (BNN BLOOMBERG)
Portage Ventures, Power Corp’s FinTech-focused VC arm, has closed an additional $39 million USD for its third fund from 34 institutional investors from nine countries. BetaKit covered Portage’s third fund—which is nearly twice the size of Portage’s second fund—in March, when the firm had secured $616 million.
Borrowell launches credit building program for renters (BETAKIT)
Borrowell noted that this program could particularly help the 3.8 million Canadians with credit scores of 660 or under. According to the company, it conducted a survey consisting of 2,873 respondents with credit scores of under 660 and found that 68 percent of them were renters.
After sparring with Ontario regulators, crypto giant Binance builds ties out West (THE LOGIC)
Since exiting Ontario amid a crackdown into unregistered crypto platforms, Binance has focused its Canadian expansion efforts on Alberta, where the exchange has had a much warmer welcome.
Cloud adoption is an adaptive process with unforeseen problems disrupting your timeline. To mitigate delays and profitability loss, a rigorous yet flexible cloud strategy and guidance is a must have.
How do you quickly develop solid cloud native architectures? By partnering with Diuca. Our qualified Cloud Consultants take the pressure off your team with their roadmap to successful cloud adoption & migration for your AWS and Google Cloud Platform workloads.
We ensure best practices are met while helping you quickly uncover changes and potential issues so your team can realign swiftly to achieve your desired outcomes.
Download our guide to Successful Cloud Adoption & Migration. Learn more here!
They Thought ‘Crypto Banks’ Were Safe, and Then Came the Crash (THE WALL STREET JOURNAL)
One Sunday evening last month, Lucas Holcomb woke his pregnant wife. “Honey, we just lost $100,000,” he told her.
Mr. Holcomb had taken out a home-equity line of credit and deposited the proceeds with cryptocurrency lender Celsius Network LLC, which offered banklike accounts paying far higher rates than traditional lenders. He liked that the company had big-name institutional investors and touted safeguards meant to protect depositors from the crazy price swings common in cryptocurrencies like bitcoin.
Crypto lender Genesis lent $2.36 billion to Three Arrows Capital (THE BLOCK)
Genesis lent $2.36 billion to Three Arrows Capital, the crypto hedge fund that recently filed for Chapter 15 bankruptcy in New York. Its loans to 3AC had a margin requirement of over 80%, and it sold collateral when 3AC failed to maintain that, later seeking repayment of the outstanding debt through arbitration in New York.
Why now is the time for Canadian startups to hire internationally (BETAKIT)
Whether by adding remote employees or helping them relocate to Canada, accessing global talent can help fill the widening talent gap we face as Canada’s tech ambitions get bigger.
“They want to feel safe that they can stay in this country,” says Feruza Djamalova, the co-founder of Sobirovs Law Firm, a boutique business immigration law firm based in Toronto.
Check out these Canadian tech venture funding reports for Q2:
Sequoia-backed Bright Money lays off employees amid funding winter (MINT)
“Employees across product, tech and marketing were impacted. Many were too early in their careers,” says an employee at Bright Money, adding employees had been assured that the company was doing well, but “the sudden development has just shaken everyone.”
Financial rates comparison platform Ratehub receives “major” investment from Novacap (BETAKIT)
Novacap has acquired a majority stake in Ratehub, but the firm is refusing to disclose the amount it invested and the size of its stake. However, a spokesperson notes that Ratehub’s “founders and the rest of the management team retain a large proportion of the shares.”
Blockchain.com Cuts 25% of Its Workforce Amid Crypto Bear Market (COINDESK)
The company cited the harsh bear market conditions and the need to absorb financial losses. The exchange recently revealed it was dealing with a $270 million shortfall from lending to beleaguered hedge fund Three Arrows Capital.
EQ Bank latest bank to join Flinks’ open banking environment (BETAKIT)
This deal, and the integration of Flinks’ open banking environment (OBE) offering, is expected to provide EQ Bank with the framework to deliver open banking capabilities and launch new API data sharing methods while providing the bank with new data management capabilities.
Better.com is still trying to proceed with its SPAC deal (TECHCRUNCH)
According to a filing from July 14, Better.com is moving forward with its planned merger with Aurora Acquisition Corp that could provide the combined company with $750 million in new capital. Its latest move is asking shareholders to vote in favor of the deal.
Former Coinbase Manager Arrested by Feds for Alleged Insider Trading (VICE)
On Thursday, the Department of Justice announced the indictment of former Coinbase product manager Ishan Wahi, his brother Nikhil Wahi, and their friend Sameer Ramani. The three were charged with wire fraud conspiracy and wire fraud in connection with a scheme to commit insider trading in cryptocurrency assets.