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DAE think most Canadian fintech founders chase funding too hard and skip the boring compliance stuff?
I keep hearing founders brag about raising a seed round but nobody talks about FINTRAC registration. We tried it the other way 8 months ago in Toronto. Built the product first, got 40 paying users, then went to register as a money services business. Took us 5 months and about $12k in legal fees to sort out the AML program. Almost killed us. Our competitor raised $3M and waved around a term sheet, then got shut down by regulators in month 7 because they never filed. Learning here is compliance is not the fun part but it is the moat. Investors do not care until it bites them. So yeah I disagree with the raise first build second playbook. Curious if anyone else took the slow route and whether it cost you deals or actually helped close them.
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