Also: Ratehub has a new CEO.

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After raising $100 million, AI fintech LoanSnap was sued, fined and evicted

AI mortgage startup LoanSnap is facing an avalanche of lawsuits from creditors and has been evicted from its Southern California headquarters, leaving employees worried about the company’s future, TechCrunch has learned.

LoanSnap, founded by serial entrepreneurs Karl Jacob and Allan Carroll, has raised about $100 million in funding since its 2017 seed round, including $90 million between 2021 and 2023, according to PitchBook. Investors include Richard Branson’s Virgin Group, the Chainsmokers’ Mantis Ventures, Baseline Ventures and Reid Hoffman, LoanSnap says.

Despite the capital raised, as of December 2022, LoanSnap has been sued by at least seven creditors, including Wells Fargo, who collectively said the startup owes them more than $2 million. LoanSnap was also fined by state and federal agencies and nearly lost its license to operate in Connecticut, according to legal documents obtained by TechCrunch.

(TechCrunch)

Executive turnover continues in Canada’s tech sector as Ratehub names new CEO

Toronto-based FinTech company Ratehub has named Naga Parvatharajan as its new CEO in the latest of what has been a flurry of executive turnover in the Canadian tech sector this year.

Parvatharajan will take over from co-founders Alyssa Furtado and James Laird, who have led the company as co-CEOs since its inception in 2010. He brings with him more than two decades of experience to the C-suite role, most recently serving as general manager of multiple lending business at American online bank SoFi.

(BetaKit)

Women in Capital Markets changes name to VersaFi to help women advance beyond the Bay Street Center

Women in Capital Markets, a leading organization for promoting and advancing the careers of women on Bay Street, is rebranding after nearly three decades to become VersaFi, a nod to a broader mandate beyond traditional finance.

Historically, WCM has focused on areas such as equity research, as well as corporate banking and investment banking. With its new brand […] and new CEO, Tanya van Biesen, VersaFi will add the likes of financial technology companies to its scope.

(The globe and the mail)

Apollo Insurance closes $18.5 million CAD branch with buy now, pay later

Vancouver and Toronto-based insurtech startup Apollo Insurance has launched a new subsidiary offering a “buy now, pay later” structure for insurance premiums called FinShore.

FinShore, a wholly owned subsidiary of Apollo, will offer its BNPL facility exclusively to Apollo customers. Last week, FinShore secured C$18.5 million in debt financing to support its launch.

(BetaKit)

Cryptocurrency exchange Kraken is in talks for its pre-IPO fundraising round

Kraken, one of the oldest cryptocurrency exchanges, is considering raising a final round of funding before a possible initial public offering after receiving inquiries from potential investors during the current digital asset market rally, according to people familiar with the matter. familiar with the issue.

The exchange will likely seek to raise more than $100 million, one of the people said.

(BNN Bloomberg)

Staging Labs, founded in Canada, acquired by Merkle Science

Staging Labs, a Miami-based Web3 cybersecurity startup founded by a Canadian couple, has been acquired by New York-based Web3 risk and intelligence platform Merkle Science for an undisclosed amount.

As part of the deal, Staging Labs will incorporate its team under Merkle Science. The agreement is intended to help Merkle Science expand its presence in the United States and Canada and broaden its product range.

(BetaKit)

FTX seeks to stop external litigation against insiders and VC firms

FTX asked a U.S. judge on Tuesday to halt outside litigation against corporate insiders and venture capital firms accused of playing a role in the collapse of the bankrupt cryptocurrency exchange, saying the lawsuits undermine FTX’s efforts to repay the clients.

The lawsuits, including class action complaints filed by FTX customers, could impact an estimated $16 billion in recovery the company plans to pay customers in bankruptcy, FTX said in court documents filed Tuesday with the court federal office in Miami.

(Reuters)

MaRS expects layoffs as part of the business model “reset”.

MaRS Discovery District has reduced its staff as Toronto Innovation seeks to return to its “original vision,” BetaKit has learned.

Multiple sources indicated to BetaKit that the hub made a staff reduction this week. Alison Nankivell, CEO of MaRS, confirmed the layoffs with BetaKit, saying the hub is examining how its spaces, programs and communities can “promote Canadian innovation in an evolving global context.”

Sources who spoke to BetaKit on condition of anonymity indicated that at least 20 roles have been cut, including MaRS delivery manager Krista Jones.

(BetaKit)

Robinhood doubles down on cryptocurrencies with deal for Bitstamp

Robinhood is delving deeper into the world of cryptocurrencies with a $200 million deal for Bitstamp, despite a warning from the Securities and Exchange Commission that it plans to sue the brokerage over its digital assets business.

The deal for the cryptocurrency exchange comes a month after Robinhood revealed it had received a so-called Wells Notice that the regulator is preparing to sue the company over alleged violations of securities laws.

The acquisition is Robinhood’s largest ever and would allow the company to serve institutional crypto clients and expand its cryptocurrency offerings internationally, the company said. Bitstamp holds more than 50 licenses and registrations globally.

(The Wall Street Journal)

Feds Resume Funding to SDTC Under NRC Following AG’s Damning Report

The federal government has resumed funding for Sustainable Development Technology Canada as it prepares to bring the cleantech agency under attack at the National Research Council of Canada in the coming months.

The restoration of funding comes as the release of a damning report by Canadian Auditor General Karen Hogan finds “significant gaps” in the SDTC’s governance and management of public money. The federal government has also appointed new positions to lead the agency during the upcoming transition.

(BetaKit)

TD’s corruption woes spread to Florida as new allegations surface

New allegations that a longtime employee of Toronto-Dominion Bank’s Florida branch accepted a series of $200 bribes to help customers wire millions to Colombia while bypassing anti-money laundering defenses are adding to the lender’s growing legal woes in the United States.

According to American prosecutors, Gerry Aquino Vargas, the now former retail banker in the Hollywood, Florida, outpost of Canada’s second-largest bank, falsified documents to open dozens of accounts and provided concierge services to help the flow of money across the border. In another recent case, a former employee of the TD New York branch admitted to bypassing the bank’s compliance measures to defraud a customer.

(BNN Bloomberg)

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Featured image via Karl Jacob on LinkedIn.

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