F|T: The FinTech Times – FreshBooks cuts 10 percent of staff to target profitability
Plus: Jack Dorsey’s Block accused of facilitating fraud.
Welcome to FinTech Times, a weekly newsletter covering the biggest FinTech news from around the world. If you want to read F|T before anyone else, be sure to subscribe using the form at the bottom of this page.
FreshBooks lays off 10 percent of employees as company aims for profitability (BETAKIT)
The layoffs affected about 80 members of the accounting software company’s 800-person team, according to a letter obtained by BetaKit that was sent to FreshBooks employees.
This reduction in headcount marks FreshBooks’ second round of layoffs in recent months.
Short seller accuses Jack Dorsey’s Block of facilitating fraud
(NEW YORK TIMES)
Hindenburg Research, the small investment firm whose critical investigative reports crushed shares of an Indian industrial conglomerate and an electric vehicle startup, published a 17,600-word report Thursday accusing Block of overestimating its user base and failing to root out fraud and illegal activity on its platforms — specifically Cash App, its mobile payment service.
Shares in Block fell, closing 15 percent lower on Thursday.
BC experienced the largest year-over-year drop in venture funding among all Canadian ecosystems in 2022 (BETAKIT)
According to a new report from briefed.in, startups in BC raised a total of $1.3 billion in 2022, down 67.5 percent from 2021, but up 34 percent from 2020. Of all the Canadian tech regions tracked by briefed.in, BC the most significant decrease in funding from year to year.
AWS Activate is a free program, built to support and accelerate Canadian startups at all stages. Join and get instant access to over 40 application-specific AWS solution templates, personalized tools, and up to $800,000 in third-party offerings and educational programs. Eligible startups can also apply for up to $100,000 in AWS Activate Credits*.
Getting started with AWS is easy. Explore our curated learning paths and help your startup prove what’s possible, today.
Join AWS Activate today
*All AWS Credits are listed in USD and are subject to the AWS Promotional Credit Terms and Conditions.
Do Kwon charged with defrauding US prosecutors in New York
(BNN BLOOMBERG)
Terraform Labs co-founder Do Kwon was charged by US prosecutors with orchestrating a year-long cryptocurrency scam that wiped out at least $40 billion in market capitalization.
US SEC threatens to sue Coinbase for some crypto products (REUTERS)
The SEC has stepped up efforts to crack down on the largely unregulated crypto industry since the implosion of FTX last year, and betting services like Coinbase’s Earn are under increased scrutiny for not being registered.
Québec budget aims to stimulate economy with investments in technology sectors, skilled labor (BETAKIT)
Quebec Finance Minister Eric Girard released the 2023-2024 budget, making it clear that the provincial government is committed to economic growth. The plan earmarks $900 million for new initiatives meant to spur economic productivity and innovation, and $615 million to address the labor shortage.
Wealthsimple partners to launch private credit fund for retail investors (THE GLOBE AND MAIL)
Online financial services provider Wealthsimple Technologies Inc. is expanding into the private credit market in a partnership with alternative asset manager Sagard, giving retail investors access to a sector typically reserved for institutions and Canada’s ultra-wealthy.
To access the fund, clients must have a minimum of $100,000 in deposits with Wealthsimple and must make a minimum investment of $10,000 in the fund.
Mogo Takes $75M Loss, Sells Crypto In Q4 (THE LOGIC)
Vancouver-based FinTech firm Mogo revealed that it sold all the bitcoin and ether it bought in January 2021 for a $1.25 million loss, bringing in just $625,000 in November 2022. Mogo also had a net loss of $75 million in fourth quarter, driven in part by a $31.5 million write-down on its 34 percent stake in Toronto crypto trading platform Coinsquare.
After Losing $10,000 in Crypto, Staging Labs Co-Founder Develops Solutions to Protect Digital Assets (BETAKIT)
“Our goal is to act as the ultimate line of defense for crypto, increasing user security even after the verification process has started, regardless of whether it was initiated by the user themselves or as a result of phishing and malicious activities,” said Staging Labs co-founder François Le Nguyen .
Exclusive: $7 billion tech unicorn Carta is betting big on managing employee equity for public companies. Now it asks them to get off the platform. (BUSINESS INSIDER)
The company’s departure from public markets represents a major strategic reversal for CEO Henry Ward who as recently as 2020 told the Financial Times he intended to decommission the New York Stock Exchange.
While it’s unclear why Carta made the decision to withdraw from public markets, multiple sources both inside and outside the company told Insider that the company was struggling to serve the needs of publicly traded companies.
