Sequoia-backed, Google alumni-led: Alternative assets platform Arta out of stealth

In The Top Up, we discuss alternative asset platform Arta Finance coming out of stealth mode and fintech giant Stripe expanding into Thailand. [Read from your browser]( The Top Up 💵 Welcome to The Top Up! Delivered every Wednesday via email and through the Tech in Asia website, this free newsletter breaks down the biggest stories and trends in fintech. If you’re not a subscriber, get access by [registering here](. Written by Simon Huang Journalist Hello {NAME} This week’s featured story is about a topic I am passionate about: democratizing access to alternative assets. These assets - including private equity, venture capital, and real estate - can provide investors with higher and/or more stable returns than stocks or bonds. However, access has historically been restricted to institutional investors or ultra high-net-worth individuals. Firms such as [ADDX]( and [Moonfare]( have broadened access to private markets by reducing minimum investment thresholds - from millions to tens of thousands of dollars. However, users still have to meet the minimum net worth or income threshold to qualify as an individual accredited investor, making these platforms out of reach for most. Companies themselves aren’t really to blame - these restrictions are the result of outmoded legislation. But until that changes, it's hard to see such platforms become mainstream for the everyday investor. My colleague Melissa’s Big Story this week profiles Arta Finance, a startup headquartered in the US and Singapore. Founded by eight Google alumni, the firm allows accredited investors to access funds from top alternative asset fund managers. Arta is backed by some very impressive names indeed (Sequoia, Coatue, Eric Schimdt) and refreshingly does not attempt to use tech for the sake of it - no blockchain involved here. A feature I found interesting was Arta’s partnership with the bank BNY Mellon. Through the collaboration, Arta offers its investors a line of credit that can be taken out against their public assets. This will enable these individuals to leverage the value of their assets to make further investments, and assuming all goes well, to further juice returns. Of course, leverage amplifies both returns and losses, so some caution is in order. One company that’s acting cautiously is Stripe, which just announced the launch of its operations in Thailand, where it’s signed up thousands of Thai companies in a beta phase over the past year. The choice of Thailand and the way that Stripe has gone about preparing for the launch is characteristic of a company that is not afraid to expand in these uncertain times yet is doing so judiciously. I look at this more closely in this week’s Hot Take. – Simon  --------------------------------------------------------------- THE BIG STORY [Arta Finance, led by 8 ex-Google execs, launches ‘digital office for the world’]( The Google executives at the helm of the fintech firm were among those who built Google Pay, Gmail, and Chromebook.  --------------------------------------------------------------- THE HOT TAKE Stripe launches in Thailand Here’s what happened: - Global fintech powerhouse Stripe announced the [launch]( of its services in Thailand last week. - Thousands of Thai companies have already signed up during a beta phase over the past year, including property platform Baania, accounting software platform FlowAccount, and digital creator platform Storior. - These firms will have full access to Stripe’s services for subscriptions and recurring payments, ecommerce, fraud detection and prevention, and more. Here’s our take: Startups and investors should pay attention to Stripe’s launch in Thailand, its [third Southeast Asian market]( after Singapore and Malaysia. The choice of market is worth noting: Thailand, despite being the second-largest economy in Southeast Asia and home to 70 million people, is often left out of the conversation altogether. Indonesia, which has the largest population and biggest economy in the region, is often core to the strategies of many startups, while Vietnam is usually cited as “the next big thing.” Even the title for the most “overlooked” market doesn’t go to Thailand - that [belongs]( to the Philippines, which is slowly coming onto the radar of tech investors. Perhaps, all this is because Thailand’s economy is dominated by traditional family conglomerates that are [accused]( of “stifling innovation and crowding out the nation’s entrepreneurial future.” But such companies are present, to varying degrees, in all major markets in the region. In any case, this does not seem to have deterred Stripe, which [aims]( to be a “one-stop shop for small business.” While the company now serves blue-chip stalwarts like Amazon, Apple, and Walmart, [69%]( of its customers are actually small companies with less than 50 employees. News of the Thai launch comes even as Stripe has yet to officially launch in Indonesia, despite plans that have been in the works for over a year. As my colleague Ardi noted in an earlier [story]( Stripe’s Indonesian journey has not been plain sailing. Apart from facing intense competition from well-funded startups like Xendit and Doku, the company also has to contend with a less developed payments ecosystem - specifically low credit card penetration rates - and a lot of red tape. Thailand is not short of well-funded competitors either. This includes US rival PayPal and regional players like Opn (which [raised]( US$12o million in May), as well as 2C2P (which welcomed Ant Group as a [majority shareholder]( in April). However, other factors may make Thailand a more attractive market than Indonesia. First, while the former’s [30% credit card penetration rate]( may seem low compared to Singapore’s 85%, that is far higher than Indonesia’s 6% or Vietnam’s 11% figure. Stripe has also integrated local funds transfer service PromptPay as one of its payment methods on top of Visa and Mastercard. This is crucial in catering to a Thai audience, given that the local service has become a [leading]( digital payment method since its launch in 2017. Second, Thailand has [“fewer regulatory restrictions”]( than some other Southeast Asian countries. Stripe also stressed its close collaboration with the Bank of Thailand as it prepared to roll out its services. Indonesia is likely to prove too attractive for Stripe to resist, but the company’s decision to launch in Thailand suggests it sees the potential for the kingdom’s startups and small businesses to grow and expand internationally. – Simon  --------------------------------------------------------------- NEWS YOU SHOULD KNOW Check out Tech in Asia’s coverage of the fintech scene [here](. 1️⃣ [IDX taps Singapore fintech firm to develop carbon exchange system]( The Indonesia Stock Exchange, which is preparing to become a carbon exchange, has signed a memorandum of understanding with MetaVerse Green Exchange, which provides carbon-as-a-service solutions. 2️⃣ [Grab, StraitsX to test ‘purpose-bound money’ at SG fintech festival]( Purpose-bound digital Singapore dollars, which will be trailed by Grab as well as three local banks - DBS, OCBC, and UOB - enable senders to specify conditions for the use of their digital assets, such as a validity period or where they can be used. 3️⃣ [Alta buys private securities platform Hg Exchange from Binance, others]( Alta - formerly known as Fundnel - is building a solution that will make it more efficient and less costly to trade alternative assets like private securities and real estate. 4️⃣ [HK fintech firm banks $40m in series A money]( Reap, which helps businesses access payables management as well as international payments and collections, says its revenue doubled over the past year.  --------------------------------------------------------------- That’s it for this edition - we hope you liked it! Do also check out previous issues of the newsletter [here](. Not your cup of tea? You can unsubscribe from this newsletter by going to your “edit profile” page and choosing that option in our preferences center. In the meantime, if you have any feedback or ideas, feel free to get in touch with Terence, our editor-in-chief, at terence@techinasia.com. See you next week! P.S. Don't miss out on the biggest tech news and analysis. Add newsletter@techinasia.com to your address book, contacts, or safe sender list. Or simply move us into your inbox. Too many emails? Switch to a different frequency or get new content through our [preference center]( or [unsubscribe](. You can also break our hearts and remove yourself from all Tech in Asia emails over [here](  Copyright © 2022 Tech in Asia, All rights reserved. 63 Robinson Road, Singapore 068894