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STATUS OF THE CANADIAN FINTECH LANDSCAPE
(and beyond)
David Nault
Co-Founder, General Partner
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STATUS OF THE CANADIAN FINTECH LANDSCAPE (and beyond) David Nault - - PowerPoint PPT Presentation
STATUS OF THE CANADIAN FINTECH LANDSCAPE (and beyond) David Nault - - PowerPoint PPT Presentation
STATUS OF THE CANADIAN FINTECH LANDSCAPE (and beyond) David Nault Co-Founder, General Partner Every category of financial services is being re-imagined 2 by nimble teams using modern technology New Canadian Fintech Companies On the Rise
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by nimble teams using modern technology
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New Canadian Fintech Companies On the Rise
Source: Luge Capital, Crunchbase & AngelList (2018)
Payments
Vertical Vertical Share
Blockchain & Crypto Lending & Mortgage Insurance Tech Wealth Tech Personal Finance Digital Banking & Infrastructure Capital Markets Other 13% 13% 13% 10% 10% 7% 6% 5% 23%
59% of fintechs are in the top five verticals
100
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More than 600 Fintech Companies in Canada
Source: Luge Capital (2018), Crunchbase, Hockeystick, AngelList, EY Report
600+
Fintechs
4 000+
Fintechs
1 600+
Fintechs
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FinTech Funding Across Canada
Where Investors are Betting on Fintech
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$600M Canadian Fintech Venture Investments in 2018
Note: In 2017, three companies raised an aggregate $244M
31 72 59 75 new
Investments
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As of Q3: $500M
~ $500M invested to date in 2018 and projected to reach $600M by end of 2018
Estimated
Source: Luge Capital, Crunchbase, AngelList & CVCA
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In 2018, U.S. Investors Invested ~20x More Capital
Compared to Canada
Source: KPMG Pulse of Fintech H1 2018 Report
Fintech venture investments in the U.S. reached ~ C$6.7B in the first half of 2018 ~ C$10B by end of 2018
As of Q2: $6.7B
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CB-Insights_Fintech-Trends-2019
Global Fintech Investments Tops $39B in 2018
Annual Global Deals and Financing, 2014-2018 ($B)
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Canadian Fintech Investments of $1.7B+ Since 2014
Source: Luge Capital and Crunchbase (2018)
# of Investments by Stage $ Invested by Stage
Series A Series B+ Pre-Seed and Seed Series B 63.5% 21.0% 7.7% 7.7% 10.8% 33.4% 26.0% 29.8%
170+
companies
$1.7B+
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Canadian Fintech Investors
FinTech focused investors: ~$600M+ Other investors with investments in FinTech: ~ 4B+
Source: CVCA and Reseau Capital
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Notable Fintech Financing in 2018
$1M $400K+ $1M $1.75M $2.5M $600K $1.1M $2.25M $8M $2.3M $975K $3M
Seed
$57.8M
$5.4M $6.6M $9M $14.3M $6.5M $8.4M $14M $25.8M
Series A
$105.2M
$23M $10.1M $12M $36M $62M
Series B
$153.6M
Source: Crunchbase, CVCA
$12M
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Fintech M&A in 2017-2018 of Over $5.8B
* Estimated ** Majority stake acquired
$4.8B $400M+
+ +
$302M
+
$100M $200M+*
+ +
$70M
Undisclosed
+ +
Undisclosed**
+
Source: CVCA
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FIs Supporting the Fintech Ecosystem
Ventures Ventures
Digital Garage and Insurtech Accelerator program
FinTech Accelerator program
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Recent Incumbent + Fintech Partnership Examples
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Create Guide Support Collaborate
CSA Regulatory Sandbox
Unite
FinTech Summit
AMF Fin Tech Lab
Canadian Fintech Ecosystem Collaboration
Animating the fintech ecosystem
Adapting our regulatory environment
Creating support for entrepreneurs Increasing capital for fintechs
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How is fintech being applied?
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Money Remittance:
- $4 billion/ month
- 4M customers
- $8 million in profit
Consumer/ POS Lending:
- 40% of all e-commerce sales in Sweden
- 2000 employees
- Funded $21 billion in online sales
Credit Scoring:
- $368M in funding
- >$500M revenue
- 700 employees
Data Aggregation/ Credit score
- Used by >115
Fintechs
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Process Automation:
- AI and ML to reduce manual
processes
- $50M in funding
Reinventing Banking:
- 3 years old. $1.7B valuation
- 3M accounts
- $250M in funding
- 630 employees
Accounting Automation + AI:
- $25M in funding
- 300 employees
- Used by > 1,000
Accounts payable/ receivable automation
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400M users => Ant Financial leads the development of the first financial blockchain standard for IEEE 600M users
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“Dear finance professionals… the times, they are a changing…”
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- You will want to understand how technology can be used, so that you can apply it to your
job and be part of this transformation process.
- Finance professionals will need to train fintech software and work on more complex or
strategic issues.
- Automation will significantly reduce administrative tasks. You will continue to have an
important role in the relationship with clients, but will be increasingly assisted by more digital tools.
- As alternate currencies and blockchain technologies become increasingly integrated into
the finance industry, there will be a greater need for roles in security fields like encryption, identity protection, risk and compliance.
- Roles will require personnel having strong soft skills — like personal attention and empathy
— that cannot be replicated (yet!) by machines
- Fintechs need professionals that understand financials services are in-demand
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About Luge Capital: $75 Million Fund
Investing in early-stage fintech companies and AI solutions applied to financial services
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Our investors and partners: Our areas of interest:
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Thank you / Merci
@LugeCapital www.luge.vc
Building Fintech Champions
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