FCP’s FinTech Map of Canada 2017

Around a month ago we released the first version of FCP’s FinTech Map of Canada, where we laid out the universe of FinTechs serving Canadians by vertical and operating stage. You can see the original article published on Betakit here.

We have since received a lot of positive feedback and are thrilled to see that some are using our map to guide their discussions on Canada’s FinTech ecosystem.

Not surprisingly, we have also received feedback from companies who thought they were either misplaced or were incorrectly left off the map altogether. We did not think we were going to get it 100% correct on the first go and are grateful to all those that have reached out. We took it upon ourselves to take in this feedback and release a slightly more accurate map which you can find below.

As we aim to update the map regularly, we believe that more accurate data leads to better insights and we encourage all those interested to continue providing feedback. That is, if you would like to either discuss, support or challenge some of the findings please reach out to jshaanan@ferstcapital.com. We would love to hear from you!

In the meantime, despite the updates, our overall insights have not changed from the original post. As a reminder, these were some of our conclusions:

  • The two verticals that have made the most progress in Canada are Payments and Lending, each with over one third of its startups operating in the expansion stage. It is not surprising that these two verticals are also the most crowded; each has 45+ startups looking to disrupt the space.
  • While Wealth Management and Personal Finance are two of the most popular verticals for entrepreneurs, very few startups have made it to the expansion stage (17% and 12%, respectively), making both of these verticals amongst the most challenging to gain traction.
  • On the other hand, Compliance and Infrastructure & Enterprise Banking are two verticals that have not attracted many entrepreneurs. Yet, when Canadian ingenuity is thrown against these sectors, there seems to be a relatively strong success rate; in both verticals, about a third of the startups operate in the expansion stage.
  • Crowdfunding has some major obstacles to overcome. There have been no Canadian-based crowdfunding companies that have been able to hit the expansion stage.
  • Cryptocurrency & Blockchain applications tend to spend relatively less time in the pre-launch stage. Alternatively, these applications have been hard-pressed to get out of the early stage, with only one company in expansion.
  • The Corporate Finance vertical has been one of the least popular verticals for entrepreneurs, even though Wave Accounting and Freshbooks are two among the great success stories of Canadian FinTech.
  • While Lending is a crowded vertical and has made good progress relative to the other verticals, we notice there is a certain sub-segment that has received little traction: Mortgages. The mortgage market is massive in Canada, yet has seen little innovation.
  • The Insurance vertical is the third most crowded vertical in Canada based on the number of startups in the space. Yet, with around one-third of its startups in pre-launch, entrepreneurs still see ample opportunity for innovation

Created by Jonathan Shaanan

2017 map

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