Peter J. Thompson/National Post
The Mars Discovery District, a fixture in downtown Toronto for about a decade and which was formed to bring entrepreneurs and capital together, is set to add a new element to its business.
The entity, which has faced a series of obstacles of late, is adding a financial technology group to complement its existing focus on information and communications technology, clean technology and health. That goal is to develop strategic partnerships to power financial technology, innovation and entrepreneurship.
Known as FinTech, the group will focus on a gamut of activities including payment solutions, new lending and savings solutions and new investing solutions. The sector also includes companies involved in the detection and prevention of financial crime, cybersecurity, financial data and analytics, payments and e-commerce. Globally, according to one estimate, the sector attracted about US$3 billion in new investment in 2013.
“The MaRS FinTech cluster will be Canada’s first dedicated financial technology cluster that will foster innovation in the space,” said Adam Nanjee, the leader of the new cluster. “The cluster will help startups grow, will connect the start up ventures to the financial institutions, and will connect the investment community to everybody. And that will be done under one roof,” he added. And as an indication of what could develop from the new cluster, Nanjee said “this is Toronto’s to lose.”
And at least one FinTech company, Cryptiv, is set to move into MaRS’ offices. Cryptiv defines itself as “an online wallet, which makes sending “pennies” over the Internet as nonchalant as giving a buck to a bell boy.” Four other Toronto-based financial technology firms, Borrowell, Wealthsimple, Digital Retail Apps and Decentral Toronto are also initial supporters.
Alexander Peh, head of market development and mobile at PayPal Canada, said the FinTech launch “is a perfect time for us to stand up and say ‘we want to invest and work with Canadian start ups in a more formal way.’” PayPal, UGO Mobile Solutions and Moneris Solutions, are the FinTech’s first three strategic partners.
“This is a great opportunity for PayPal to partner with MaRs to help Canadian start-ups and create meaningful and innovative digital commerce experiences,” said Peh, noting, “Toronto has a unique opportunity to profit from its strength as a financial centre to also lead in technology leadership. We look upon our partnership with MaRS as the opportunity to raise the flag.”
In 2014, seven Canadian-based FinTech companies made it into the Deloitte Technology Fast 50, “the program celebrates innovation, entrepreneurship, achievements and evolution in the Canadian technology industry.”
At least six Canadian FinTech companies have received at least $10 million in venture capital financing. For instance:
• Ottawa-based Shopify, which defines itself as “the industry leading commerce platform that allows anyone to sell online, in-store and everywhere in between,” received $100 million in late 2013;
• Newfoundland-based Verafin, whose “mission is to help financial institutions like yours fight financial crime through innovative technology,” received $60 million last May.
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