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

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. Get it in your email inbox by registering here.

Hello there,

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’

Image credit: Timmy Loen

THE HOT TAKE

NEWS YOU SHOULD KNOW