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Archive for the ‘In-depth Insights’ Category


The Future of Canadian Fintech

Written on June 3rd, 2016

Written by:

Difference Capital Fintech Team
Tom Liston, CFA, Managing Partner – tliston@nulldifferencecapital.com
Jordan Udaskin, Vice President – judaskin@nulldifferencecapital.com

At Difference Capital we’re proud to have been one of the first Canadian funds with a focus on the Fintech sector.  We invested before Apple Pay and “Tap and Pay” became household terms and have strong relationships with most of our homegrown tech leaders and innovators. Today our Fintech investments represent a material portion of our portfolio.

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The Future of Payments in Canada

Written on May 14th, 2015

Canada’s Non-Bank Payment Innovators

May 2015

To download a PDF version, please click on the following link:
The Future of Payments in Canada

Canadian Payment Innovation Landscape

At Difference Capital, we closely monitor the financial technology sector and have invested in a number of companies in the space, offering us a unique insight into market trends. This is our latest in a series of primers on the Canadian FinTech sector.

For most consumers, how credit and debit card transactions work is a bit of a black box.  You may swipe or tap your card (or if you are a bleeding-edge tech adopter, your phone) and then the terminal may beep and print out a receipt, but what is really happening, and who is making all this stuff work?

We’re excited about the companies that are enabling next-generation electronic wallet technology as well as companies that are making an impact in evolving payment acceptance.  We view this as one of the top growth areas in fintech over the next few years and will continue to keep our eyes strongly peeled to the ecosystem.

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Digital Money

Written on April 27th, 2015

Bitcoin and Beyond

April 2015

To download a PDF version, please click on the following link:
Digital Money

Prologue

At Difference Capital, we closely monitor the financial technology sector and have invested in a number of companies in the space, which gives us a unique insight into market trends.  Earlier this month, we launched our financial technologies series with “Making Cents of Fintech”.  For our second installment we are focusing on Digital Money – Bitcoin and Beyond.  Stay tuned for more installments to come.

Introduction

Digital money (or crypto-currency) has been around for a while but the concept has been rejuvenated with the rise in prominence of bitcoin over the past five years or so.  We are going to start with a high level description of what this concept entails and then quickly jump into some of the key investable areas that touch digital money along with providing our outlook for the industry.  Overall, we are quite enthused about the prospects of the new technology in helping to reduce the roughly $50 billion in annual friction costs associated with just the eCommerce and global remittance markets.  In the longer term, we see lots of potential to repurpose the bitcoin distributed ledger (or blockchain) for a host of other applications outside of the currency markets.

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Making “Cents” of FinTech

Written on April 20th, 2015

Canadian FinTech Innovators Driving Global Change

To download a PDF version, please click on the following link:
Making “Cents” of FinTech

Canadian FinTech Landscape

It wasn’t too long ago that innovation in the financial sector was said to involve only innovative fees and tweaks to banking hours.  These days nimble organizations, both large and small, have begun to disrupt the Canadian financial landscape and unbundle (and improve) services that were traditionally the domain of only the largest financial institutions.  We’ve seen this disruption story play out many times in recent years (Google – advertising, Netflix – broadcast, Amazon – retail, Airbnb – accommodations, Uber – transport, etc.) and are now seeing it take hold in FinTech.

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When Mad Men Meets Flash Boys

Written on May 25th, 2014

To download a PDF version, please click on the following link:
When Mad Men Meets Flash Boys

Advertising used to be simple business. My newspaper has a million readers. My TV program has a million viewers. Now let’s negotiate what it’s worth to you Mr. Brand to put your ad in front of my audience. The web made this dynamic a bit more complicated, but early on the process was quite similar. My website gets a million hits per month and now let’s figure out what a banner ad is worth to you. The story got more complicated rather quickly as a bunch of genius coders realized that advertising is actually the perfect domain for technology because tech is capable of bringing way more measurement and accountability than ad buyers had ever seen before. It’s not a coincidence that all of those high flying tech stocks you follow are really advertising companies – think Google, Facebook, Twitter, Yahoo, Baidu. Online advertising is a $100 billion global market, or about 10x larger than it was in the early 2000s. This segment has risen from nowhere to become second only to television advertising but growing much more quickly.

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It’s Time to Change the Channel

Written on May 5th, 2014

To download a PDF version, please click on the following link: 
It’s Time to Change the Channel

The way we consume media is evolving at breakneck speed while legacy networks and broadcasters scramble to get out of neutral. Everything we know about the media industry is being transformed by interactive and streaming technologies. There are incredible investment opportunities out there available for those who have done their homework and who know the right people.

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