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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 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.
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.
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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.
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.
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:
“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.”
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.”
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.
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.
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.
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.