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Indonesian Fintech Investor, BRI Ventures’ CIO Says Company will Use $250 Million Fund to Create “Real Value,” Not Just High Valuations

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Indonesia is one of Southeast Asia’s largest markets for digital platforms and services. The country offers an attractive business environment and opportunities for investors who are interested in projects that aim to take advantage of fast-growing economies.

BRI Ventures, the investment division of Indonesia’s oldest bank, BRI, has a $250 million fund that it plans to allocate toward the development of initiatives that can create real value for the nation’s residents.

In statements shared with KrAsia, William Gozali, CIO at BRI Ventures, noted that his company believes in “real value” creation and they aim to become “strong value-add investors” for their portfolio companies.

BRI Ventures is a Jakarta based venture capital and private equity firm that’s supported by Bank Rakyat Indonesia. BRI Ventures is established as an independent business entity with its own funding processes.

Gozali noted that the VC company focuses on businesses that are generating consistent revenue and also those initiatives that can continue to grow their operations. He explained that for BRI Ventures, revenue means “validation.” He also mentioned that when people or organizations truly value your products and services and when they value your brand or company, then that’s when they’re willing to part with their hard-earned money. This is a sign of “real value creation,” Gozali said.

He also clarified that there can be times when valuation merely reflects the “perception of value, the future.” However, validation-revenue means “the real value created now,“ Gozali noted.

He told KrAsia that BRI Ventures is mainly focused on Fintech, education, agriculture, retail, transportation, and healthcare related businesses. The VC firm has made strategic investments in digital wallet provider LinkAja, SME-focused Fintech firm PayFazz, and peer to peer lending platforms Investree and Modalku.

Nicko Widjaja, CEO at PT BRI Ventura Investama (BRI Ventures), a subsidiary of BRI, had stated (in late June 2020):

“In today’s digital tech business ecosystem, the landscape has shifted from growth at all cost, to sustainable growth. The name unicorn has been adapted from Silicon Valley, which might no longer sit well with today’s ecosystem. Indonesia needs Sembrani, a symbol for Indonesian start-ups.” 

In May 2020, BRI Ventures (along with other firms) invested in Fintech firm Nium. The company said it would use the funds to support its product development efforts.

BRI Ventures had also launched Dana Ventura Sembrani Nusatara (Nusantara Venture Capital) in Jakarta on June 24, 2020.

The company will offer convenient access to venture capital for digital technology and Fintech firms, including SMEs.  Dana Ventura aims to accelerate the growth of local start-ups by offering digital technology-enabled products in offline and online environments.

Dana Ventura will mainly be funding seed-stage and Series A ventures.

Widjaja had noted (earlier this year):

“The philosophy behind BRI Ventures investment is ‘value over valuation’ in which our focus is seeking businesses with strong fundamentals. The funding will be channeled to start-ups that already produce products, have income from their operations and have a clear business strategy toward profit.”

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Bitstamp says its users are now covered against a broad web of crime

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Digital asset exchange Bitstamp has beefed up its insurance measures to combat the inherent uncertainties associated with the crypto space.

“The policy covers an array of crime-related cases, such as employee theft, loss while the assets are stored at any premises, loss in transit, loss caused by computer fraud or funds transfer fraud, and loss related to legal fees and expenses,” an Oct. 15 statement from Bitstamp detailed with regard to the firm’s updated insurance measures. 

Cryptocurrency offers added freedom when compared to traditional finance, allowing users to transfer the assets they own with greater ease and self-sovereign control. Such advantages can also make theft more viable, however. To combat this, a number of crypto exchanges now boast various forms of customer insurance, including Binance, with its Secure Asset Fund for Users, or SAFU for short.

Bitstamp’s new insurance policy is likewise tailored specifically for crypto. It is made possible through the involvement of a number of players, including U.K.-based Paragon International Insurance Brokers. “Our crime insurance policy is designed with the specifics of digital assets in mind,” Paragon’s senior vice president, Jeff Hanson, said in the statement, adding:

“Traditional insurance policies do not translate directly into digital assets, which is why we’ve created and placed a policy to fit the bespoke requirements of highly respected and forward-looking exchanges such as Bitstamp, which value the safe custody of their customers’ funds above all else.”

Bitstamp’s added coverage stacks on top of insurance that BitGo, a digital asset trust and security company, provides to the platform. As part of their offering, 98% of Bitstamp’s crypto holdings are kept securely offline using the BitGo platform.

Bitstamp says its users are now covered against a broad web of crime

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Crypto Mining Firm HASHR8 Introduces Compass, which Matches Bitcoin (BTC) Miners with Affordable, Verifiable Hosting Facilities

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HASHR8 Inc., a cryptocurrency mining and media firm that aims to support the “decentralized growth” of hashrate (or computing power used to secure digital currency networks) while enhancing the security of blockchains, has introduced Compass – which is a platform that will match Bitcoin (BTC) miners with verified hosting facilities across the globe.

According to a release, Compass is built to help people mine Bitcoin in a manner that they can generate more profits. The platform allows crypto miners to “secure competitive hosting agreements with the lowest-cost mining facilities worldwide, automating the process and eliminating broker fees.”

Bitcoin mining is a very competitive industry with relatively high entry barriers. As explained in the announcement, those who might be willing to “brave these conditions” still face the time-consuming or challenging process of sourcing their hardware from a reliable distributor. They also need to choose a good hosting facility and negotiate an affordable electricity rate.

According to HASHR8, this process can become quite overwhelming and it might also present significant counterparty risk.

Thomas Heller, COO at HASHR8, stated:

“Bitcoin mining is a global game now, and [we think that] Compass gives everyone the best opportunity to compete. Whether a miner wants to move from China to a facility with a better power rate or a fund wants to deploy their first 100 mining machines, Compass makes it easy.”

Compass has been designed to remove the different barriers to hosting and aims to offer a good user experience. Bitcoin miners may now acquire hardware and “seamlessly secure space in the world’s best facilities at competitive rates, and start profitably mining bitcoin much faster,” the announcement noted.

Whit Gibbs, CEO at HASHR8, remarked:

“Decentralization for Bitcoin comes through the democratization of mining. Irrespective of nations, most hashrate is controlled by a few dozen miners. We are excited to give everyone the ability to mine bitcoin profitably and truly decentralize the network.” 

Compass reportedly has considerable hosting capacity that may be accessed from many data centers across the globe. Facilities have been listed from North America, China, Kazakhstan, and Iceland. When it is launched, Compass platform users will have the option to buy or enter into various hosting agreements and acquire hardware as needed.

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