F|T: The FinTech Times – BlockFi Bankruptcy, Buckzy Takes the Smart Money, Kraken Re-Unlocks
Plus: FTX collapse hits Gadze Finance.
Welcome to FinTech Times, a weekly newsletter covering the biggest FinTech news from around the world. If you want to read F|T before anyone else, be sure to subscribe using the form at the bottom of this page.
Cross-border payments startup Buckzy takes the smart money in scaled-down $19.5M CAD Series A (BETAKIT)
Buckzy’s founder and CEO Abdul Naushad told BetaKit in an interview that this capital will extend the startup’s runway by 12 months and help it reach cash flow breakeven by this time next year.
Kraken cuts 30% of staff to ‘be crypto winter’ (THE BLOCK)
“We are reducing our global workforce by approximately 1,100 people, or 30 percent, to adapt to current market conditions,” co-founder and CEO Jesse Powell said in a blog post. Powell previously announced that he would retire in September.
Ha Nguyen named McRock Capital’s third partner as firm looks to raise $200M (BETAKIT)
Nguyen originally joined McRock in 2016 as an associate, and served as McRock’s manager and vice president of Western Canada for the past four years.
A bombproof courtroom and a CEO in the dock: what to expect from the Wirecard trial (FINANCIAL TIMES)
Wirecard, once worth €24 billion and hailed as one of Europe’s most successful tech start-ups, collapsed in June 2020 after revealing that half of its €2 billion in annual revenue and €1.9 billion in corporate cash was fraud. The implosion sent shock waves through Germany’s economic and political establishment.
What Coconut Software CFO Matt Petrow Learned While Raising a Series B (BETAKIT)
Matt Petrow, CFO of Coconut Software, said it’s about more than just knowing your numbers and taking the best term market available.
Canadian Crypto Platforms Pushed for Breakdown of Offshore Competitors Ahead of FTX Collapse (THE LOGIC)
In a meeting with regulators weeks before FTX collapsed, Canadian crypto platforms pushed for stricter enforcement against major foreign platforms that continue to operate in the country without registration.
Montréal Startup Community Awards 2022 honors #MTLtech’s best and brightest (BETAKIT)
Over 300 peer nominations were received with a selection committee shortlisting five to 10 finalists for each category. The awards were presented at the Gala de la Communauté Startup on 1 December.
FTX collapse hits Gadze Finance, crypto fund led by Top Hat founder Mike Silagadze (THE GLOBE AND MAIL)
The Toronto entrepreneur, best known for building online textbook company Top Hat, last year founded Grand Cayman-based Gadze Finance to invest in the crypto space. When FTX’s high-profile meltdown began this month, Gadze had $5.4 million of his roughly $40 million in assets held in custody at the exchange, shorting cryptocurrencies as part of a hedging strategy.
Foresight 50 List Names Canada’s “Most Investable” Cleantech Firms (BETAKIT)
“Last year’s Foresight 50 companies went on to raise $593 million to advance their cleantech solutions,” said Foresight Canada CEO Jeanette Jackson.
Crypto lender BlockFi files for bankruptcy as FTX fallout spreads (THE NEW YORK TIMES)
On Monday, BlockFi, which was founded in 2017, filed for Chapter 11 protection in New Jersey. The implosion is the latest example of an industry built on shaky foundations, with companies so intertwined that a single wobble could unleash financial chaos.
How to protect yourself from cyber threats (BETAKIT)
In a BetaKit Live, Leigh Tynan, the director of TELUS Online Security; Jeff Bonvie of the RCMP’s Cybercrime Coordination Centre; and Matthew Moniz, founder and content creator of Moniz Media, shared his insights on the current state of cybercrime and the secret to staying safer online.
Mastercard, block group for lobbying Canada’s financial reforms (BNN BLOOMBERG)
More than 40 companies have joined forces to launch Fintechs Canada, a lobbying group that will push for so-called open banking rules and other regulations they say will enable more innovation in a financial sector dominated by a handful of domestic banks.
FTX fallout could set back investment in Canadian crypto companies for years, experts say (BETAKIT)
“This has probably set crypto back at least three years,” said Koleya Karringen, CEO of the Canadian Blockchain Consortium. “Institutional investors are going to have a very difficult time being willing to explore the industry. They’re not going to see this as an isolated incident … all of them [will get] painted with the same brush.”
Meanwhile, Balance CEO George Bordianu said there should be “consequences” for investors who participated in FTX rounds.
Prairie tech celebrates its own with Calgary Launch Party, Start Alberta Awards, Startup TNT Summit (BETAKIT)
This year’s Launch Party highlighted 10 Calgary startups, with three taking home awards for the People’s Choice Award, Alumni’s Choice Award and Alex Raczenko Pitch Award, respectively.
