Key Canadian FinTech investment stats in Q2 2023:
• Canadian FinTech deal activity reached 77 transactions in the second quarter, a 2% increase from Q2 2022
• Canadian FinTech companies raised a combined investment of $63m in Q2 2023, a 82% drop YoY
• RegTech was the most active Canadian FinTech subsector in Q2 2023 with a 39% share of deals
Amidst a global downturn in FinTech deal activity, Canadian FinTechs defy the trend. In the second quarter of 2023, Canadian FinTech deal activity saw a 2% uptick from Q2 last year, with a total of 77 deals recorded. During Q2 2023, Canadian FinTech firms secured a combined $63m, reflecting a significant 82% YoY decrease.
OneVest, a Wealth-as-a-Service platform, had the largest Canadian FinTech deal in Q2 2023, raising $12.8m in their latest Series A, led by OMERS Ventures. The investment will be used to expand OneVest’s Toronto and Calgary teams, across sales, business ops, product and engineering, plus support OneVest’s expansion into the US. “We’ve built OneVest as a durable, highly scalable platform that can shape the future of wealth management,” said Amar Ahluwalia, OneVest’s CEO and co-founder. “Financial institutions need exceptional experiences to meet both customer and advisor expectations when it comes to technology. The ability to implement a modern service with all the required compliance requirements built in, is compelling.”
RegTech was the most active Canadian FinTech subsector in Q2 2023 with 30 deals, a 39% share of deals. Lending Technology was the second most active FinTech subsector with 11 deals, a 14.2% share of deals and WealthTech was third with nine deals.
As on June 2023, money services businesses (MSBs) in British Columbia will be required to register according to British Columbia Bill 19: Money Services Businesses Act (MSBA). Governed by the MSBA, MSBs encompass non-bank entities offering transfer and exchange services, including fund transmission, money order issuance, and fund redemption. The federal level already regulates MSBs through the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA). Individuals engaged in or aspiring to run MSBs in British Columbia will soon need to adhere to registration and reporting prerequisites. Non-compliance with MSBA provisions and forthcoming regulations might lead to administrative penalties.