#15 Supporting the Backbone of the Economy - Small Businesses | The Startup Podcast Delivering You Deal Flow | Regulation Crowdfunding Investing in Asenso Finance on Wefunder

Speaker A: I was uh, recruited to another company, a smaller broker dealer. And that broker dealer, um, Wessel was the first technology that was in the 90s before E trade came out, the online trading. Um, so that company was really focusing on how to make online trading happen because back then you will have to call the broker and the broker will have to write a ticket and trade it for you.

Speaker B: This is Seeking Startups, a show that gives you an inside look into the minds of ambitious people who are trying to change the world. Learn about what they're building, their personal stories, and invest in the founders you believe in. Now, with equity crowdfunding, anyone can invest in early stage private startups. If you're searching for entertaining, educational and inspirational content about startup investing, this show is for you.

Speaker C: I'm your host, Maxim Davis.

Speaker B: And today on Seeking Startups, we have Kenny Chang, the president of Asinso Finance. Kenny is no stranger to entrepreneurship as he was raised in an entrepreneurial household. With lessons he gained from his father who owned a business in Guatemala and decades long experience working in finance, Kenny is bringing all of his knowledge to help build Asinso Finance. Asenso Finance is the working capital marketplace for small businesses. With the mission of helping small businesses through capital and resources.

Speaker C: Kenny believes he and his team have

Speaker B: what it takes to make a real difference and create a successful business in the process. Before we get started, I just want

Speaker C: to thank all of my fellow podcast subscribers.

Speaker B: Thank you for returning week after week listening to the show.

Speaker C: I really appreciate all of your support.

Speaker B: If you would like to help grow this podcast, please feel free to leave

Speaker C: a rating and a review and share

Speaker B: the show with your family and friends. Hey. I would like to quickly say that everything you hear in this podcast is only for informational and entertainment purposes. This is not financial advice and I'm not endorsing this company. Please do proper due diligence before investing in any startup. Okay, now let's get started.

Speaker C: Any thank you for being on the podcast. I'm looking forward to uh, getting to know more about you and uh, Asinso Finance. Before we get into your story, let's talk about the company. So can you just tell me what Asenso is and what it does?

Speaker A: Asenso is a all inclusive Neo bank with small businesses and uh, with that we built a five different features that cater to just small businesses. So when you wanted to start businesses there are a, uh, few things that you will need right after you register your company. You uh, need a bank account, you will need a working capital, you will need a Business, ah, insurance. And you probably will need a um, business merchant services. So Accenso is built on um, the small business need with the base of a uh, working capital. So with working capital, what we different from others is a working capital marketplace. And what is that? Working capital marketplace is really a um, place where we will review your application, we underwrite your application and by the time we send in to different lenders, your loan is already uh, approved. So that when it goes to the lender, uh, it's basically is negotiating on pricing. Okay, Right. So different uh, from other marketplaces that might be out there, um, they are just taking the information and just send it to different lenders and let the different lenders decide. Right. So what we did is we make an extra step, we truly underwrite you and then by the time it goes to lender, you are approved. It's just a matter of pricing from different lenders as they have different um, pricing structures. So that's what differentiates in our marketplace. And this is important. So um, you know, for you to start a business, people will start thinking, hey, you know, do I put uh, my own money? But what if it's not enough? Right? Do I go to my family? Do I go to the bank? So we kind of help you walk through that process and help you from the beginning to the end.

Speaker C: Okay. So you focus on that marketplace aspect, um, of getting that working capital. And did you also say you work on those other aspects like getting the bank set up and then the insurance and all that as well?

Speaker A: Uh, we do, um, okay, we start with the working capital. That's how um, the accenso was envisioned among us, the founders is to be able to provide that working capital to small businesses. After the pandemic. I see as you know a, uh, lot of people have struggled to get the loans or the PPPs and many fail to receive the assistant that they need. And that's why essence of mission is really close that gap, provide as much possible working capital to those in need. And so that's our foundation. And after that we explore options. Like I mentioned, what do you need also as a small business. Right. So we found a uh, business insurance, uh, system where the small business owners can go on search over 200 insurance companies and get the best pricing as well so that uh, they can compare if their current pricing uh, is higher or lower. Right. So give them more options, choices. I think people prefer um, choices than no choices at all. And then throughout the process, so working capital will offer then also the bank account, uh, to do uh, as we all talk about after the 20, um, 20, the pandemic mobile become a necessary tool. Not a wanted tool, but a necessary tool. So you'll be able to open a bank account throughout that process as well and do your banking without really stepping into a bank. We experienced that in the pandemic. Banks have actually closed the doors, but they still operate um, on the vaccines. But how do you do it is you don't have the tool. So we offer that tool. Check the online banking, the mobile deposit, all the features that allow you to operate, uh, without stepping into a brick and mortar location.

Speaker C: If I am a small business owner and I'm looking to either start my business or grow my business and I'm looking for working capital, I'm looking for some support. How do I use your process or your company to help me do that?

Speaker A: So uh, our process is simple. First, uh, we onboard you, right? You open uh, an account, uh, either through our mobile app or uh, online. Then once you get onboarded, uh, your account is created with the basic information that you provide. Uh, with that then if you want to go further, let's say to apply for an account or to apply for the working capital, then it continues with the onboarding process. Meaning we have some questions that we ask you. And then at the end of the day we'll also uh, provide you uh, option to upload documentations um, to show that you know, uh, what are your current status. And with that then it go automatically to our AI system on the back end and do the underwriting. So instead of most uh, of the banks would do for days or weeks that we have experienced in the past, you know, uh, we will let them know in a matter of a day or two if it's properly completed. Within a day we'll let you know if your loan is approved and what will be your uh, offers on pricing and for the account as well. You know, within a day your account is open and you can start making deposit and doing your banking.

Speaker C: When I was looking over your funding page, I know that you talked about how s and so was able to analyze the risk in a way that maybe other companies can't and therefore provide the best funding to each company and uh, distribute that risk. Right. And so I'm curious about like the onboarding process and the questions you ask. How are you able to uh, I guess assess that risk and find the best lender?

Speaker A: Our unique um, system is we take a different factors, right? Uh, as a lender they'll look at maybe you know, just focusing on your credit per se. Right. Uh, your credit score is not to the point and you might be declined. We look beyond that. Your credit score will tell me one thing. But also we look at your um, tax returns, we look at your uh, financials, we also look at your bank statements. So all this information will give us idea how you're operating in your business. And our system will analyze through those information on top of that. Um, so for example a bank statement would tell us how your expenses, right. Are you overspending so that your account is constantly negative or you're spending accordingly to the need and you actually know what you are spending. So we don't just look as a traditional, just your credit score, your credit report. We look beyond that. We look at the behaviors, uh, uh, of the owners, how they are managing their business. Because what is the key of a small business is really the owner.

Speaker B: Mhm.

Speaker A: The owner is really the soul of the business and the main operator. So it's important that we understand how he's operating and how he's managing his business.

Speaker C: And so you have this marketplace, you have the small business owner that's trying to get that capital. Uh, but then you also have a lender. Right? And so we talked about the small business owner, how it works for them. But um, who do you work with on the other side? The lenders. Who are these uh, banks that are providing the capital?

Speaker A: Definitely we work with several lenders. Uh and by lenders I mean we have the new title so called CDFIs which are treasury uh, approved lenders. Uh we have community banks, uh, we have private lenders and we have national banks. And um, this uh, provide us a more variety of pricing and products that we can offer to the borrower. And by doing that those um, lenders actually utilizing our system as well. Because uh, we are showing them this is a system that we go through, this is how ah, we uh, review credit uh the traditional way and the non traditional way. And actually we can set uh up in a way that you know, each lender would like to. Because lenders, they have their own credit policy that they have to abide to. So we can adjust in our back end so that whoever we underwrite it is fed to them. So the lenders like that because first of all it cut down their costs as I mentioned earlier, usually take uh, the banks uh, days or weeks to process your loan. Why is that? Because now whatever the digital um, banking out there or lending out there is really more of the intake of the application. And then you have to manually Process in the back end as a borrower you might not feel it but that's how it works. Uh, there's really no automation but we truly automate that. Okay so really we're focusing on two spectrum of the client which is most of Fintech or software companies out there. They're only focusing on the consumer or the provider which is the product provider in this case the bank. We have both, we build both so that it benefit not just the consumer but as well to the bank to basically once you automate and make it more efficient your cost reduces. Uh for many years banks uh, worry of going to a small business market and they limit the resources to small business markets because the cost, it's going to cost me the same to process a loan that is $10,000 to a loan that is ah, $500,000. So as a bank most likely they want to go to the 500,000 as a more profitable because it's a larger loan. But in our case we're telling that look it going to cost you actually less, it won't cost you the same because we automate that and it's scalable so you can really reduce the overall cost whether the small business, small loans or medium to a large size companies, uh, large size loans because it's fully automated and uh, we got a very good um, views from the lenders uh as well with that we're proud to say we actually won a competition with the FDIC uh lending software uh last year um to be the most marketable as I mentioned it's really a true um, I would call it FinTech plus FinOp meaning that uh, it's not just the intake but also the operation which is the back end as well. So it's a full service on the both spectrum.

Speaker C: I can see how by solving one problem from the bank side which is cost and time that solves the problem for the small business owner because now they can have access to that capital. So it's a full circle like you said. Now how does Vicinso make money? So you're a marketplace. Do you charge a fee to the bank or is it for the small business or both or how does that work?

Speaker A: Uh we have different uh, profit uh models. Uh as I said we have different features on our system. So uh, we get uh a profit, a small profit from the insurance. As we sell those insurance we have profit um the loans, as we um originate those loans, uh, it will generate a profit of servicing because what we are doing is we are offering the system to the lenders free of charge. But in return they will agree for us to process the loans and servicing the loans for them. So we help them to manage that risk so therefore lower their cost so they don't have to hire another 10 people just to handle the volume of the small business. But we take care of that automated and with that. So uh, we charge a fee to the lender so there's no cost to the uh, borrower. We also uh, profit from uh, the deposits. Uh like any other banks as a bank account gets open. Uh, our bank accounts are FDIC insured, uh, bank account from our sponsor bank. So uh, we also profit from the deposits.

Speaker C: So in terms of the distribution model, because you have two, because you have a marketplace, you have two sides, right? Are you mainly focusing on one or the other or are you focusing on both and how are you creating that flywheel?

Speaker A: Um, definitely. Ah, and this is a challenging thing to do, right? Because traditionally you either focus on the consumer side or you're focusing on the business, uh, side. Uh now we have to do both which um, is uh, our model is built on um, we have two teams. One is the retail uh, acquisition. The other one is a business acquisition. And what's different is that we um, have um, built a good solid foundation on the marketplace with lender participants, uh, to our marketplace. So that is being built already. So the next focus after our funding is really to uh, open up to consumers, to small businesses for them to start to really applying, go through the process and then getting the loan funding. Um, so um, that's the game plan of the two models.

Speaker C: I see. Can you talk about your traction so far? So you said you're focusing on the lenders first. How many of those do you have on board and um, are they paying customers and things like that?

Speaker A: Yes, currently uh, we have five ah, lenders on board and we continue to grow that list. And um, the beauty of this is that once we bring them on board they are utilizing our system. So by utilizing our system they actually are bringing customers in for us.

Speaker C: Right, Right.

Speaker A: Uh, so we actually starting that. So the lenders actually is encouraging their customers go through our process and then have us to then on the Right. And then fund the loan and service the loan. So we've been doing that already with the lenders, the five lenders that we have brought in place. And as we see the process works so very soon. We do expect uh, the third quarter of the year to open up ourselves to the public as well. As we can see there's a huge demand we are starting here in California, uh, but definitely we will slowly open up to different states.

Speaker C: How many lenders do you onboard? Like a quarter. And where do you see that going?

Speaker A: Uh, we expect to onboard two lenders per month.

Speaker C: Okay.

Speaker A: So we'll say six per quarter. Uh, that's ideal. But once we onboard them, we have to uh, it can take some time to set them up and train them, um, so that they can direct the people to the system.

Speaker C: Right. And how many small businesses do you see come through each lender? So on average, how many um, referrals do you get from um, each lender that you onboard?

Speaker A: Uh, so far we have actually, uh, brought in about 15 to 18 small businesses through the system. I will say, uh, we have funded about 80% of those, um, small businesses. Um, we encounter a, for example, uh, we request a certain information and they don't have it. So things get delayed because then we have to adjust the metric and have the system to look for other sources to review the loan. So our goal is to really bring uh, the working capital, um, to the small business, whatever the way possible. Uh, so we'll go through beyond the traditional credit and look into what all the information that we can see or analyze to come to a reasonable decision, um, to approve or decline the loan. Right, right.

Speaker C: So if you had about five lenders and you've had about 15 to 18, um, small businesses, you're looking at maybe three to four, um, on average that come through each lenders. Is that about right?

Speaker A: Yes.

Speaker C: Okay, gotcha.

Speaker A: And um, keep in mind, we are still on a testing mode. So um, we have not fully launched the product. Um, as I said, once we onboard the lenders, we go through a training to the lenders as well. Uh, on those time we talk about two weeks for them to feel comfortable and then for them to start coming in and then testing, making sure that um, the process is comfortable for them as well and at the same time give us uh, a uh, better feeling how lenders feels about the market.

Speaker C: When we come back, you'll get to

Speaker B: hear what customers are saying about Asinso Finance. But before that, here's how you can personally invest in the company. Asenso is currently raising up to $1 million at a $12 million valuation cap on we funder. After the early bird terms expire, the valuation cap will be raised to $15 million. The current minimum investment amount is $100 per investor. Funding is currently open, but is scheduled to close on June 29, 2022. But if they hit their maximum funding Limit before then you'll be directed to their waitlist. If you're interested in getting more information, check the show Notes below where you can find a link to their funding page.

Speaker C: Can you talk a little bit about what customers are saying about your products? You know, why they like the product kind of um, their experiences?

Speaker A: Uh, so far we have uh, a good comment, uh, responses on our product from consumer side. Uh, as mentioned, um, we make it pretty easy to go through the onboarding, answering questions, uh, um, the verifying themselves, um, um, the uploading of the documentation. So if you are used to um, apply for example credit card online or uh, applying something online, you wouldn't feel any difference uh, or any uh, issues or troubles throughout the way. So uh, we are very happy about that on that. Um, I think honestly something that comes to very unique about us compared to other ones is the uh, ekyc, the identification process. Um, most of the applications out there, you um, fill out the application, you claim who you are and that's pretty much it. Um, there is no way for the computer to really identify besides understanding capturing your IP address. But what we did is we took that further um, by uh, putting a software to do a kyc, which is know your customer software, uh biometric software into our process. So while you're filling out the application, you know there's a biometric system that will need you to you know, scan uh, your id. Right. And that scanning will actually review to attend to confirm whether your ID is valid, uh, view id, uh, and then uh, with your biometric they will compare the two, your ID picture and your biometric picture to match it to make sure that you are who you are that is applying for.

Speaker C: It's interesting that you mentioned all these things. It sounds like what a senso really does is digitizes and automates a lot of the process to make it faster, to make it uh, cheaper, uh, to make it more secure. Um, one thing I would like to ask about is market timing and Runway and so I'm sure you're aware of, you know, the market that we're in right now for startups, it's getting more and more difficult to raise money. Um, tech stocks, tech valuations have really come down recently. And so can you talk about how Cento is planning to maneuver through this uh, this market?

Speaker A: Well no, the economy is not at the best right now. So uh, we do foresee uh, some declines in the near future. So with that I uh, believe the product is needed more than ever and um, we're getting good responses, uh, from, from customers and from vendors as well. Right. Um, and idea of keeping the cost low, same thing applies to our firm. So we're a big believer that um, with so much technology out there, it become a commodity. It shouldn't be expensive like five years ago. Um, so uh, our Runway we're looking at, you know, two, three years.

Speaker C: Okay.

Speaker A: So uh, by really uh, controlling our budget not to exceed certain expenses. So um, as I mentioned earlier, same concept apply. Right. Uh, we want to spend, uh, the need, not the want, so that we cover their needs and we have enough to weather the storm.

Speaker C: Right, right.

Speaker A: So we do have a very good plans and uh, we have implemented that and we're very proud of saying that um, definitely we should be able to run two, three years, uh, without any issues or hiccups.

Speaker C: I didn't think about it, but I think you kind of alluded to it, which is when funding dries up in the market, maybe more people actually use your service because um, uh, there's no other possible opportunity to get money elsewhere. So it's possible that you could actually do better.

Speaker A: Yes. And um, as mentioned in the beginning. Right. So it's really important for business or companies out there to think, well, am I going to continue to do equity or I'm going to continue to do debt? But if equity dries up, then debt goes up. So it's really like a seesaw, um, the effect. So uh, as mentioned, the economy not at its best. You will see a slowdown on equity. Then definitely we'll see a huge increase on debt. Uh, even though with the interest rate right now, with the market still considering, uh, cheap capital compared to equity. Because you are giving up your rights to your business rather than, you know, you're controlling your own destiny. Right.

Speaker C: Oh, that's interesting. So you mentioned your traction where you are now, but can you talk about the larger opportunity, like how many businesses are there? How many uh, lenders could use this and just kind of paint the bigger picture for us?

Speaker A: Oh, definitely. I mean just in California, since we are based in California, we have over 31.7 million small businesses just in California. And that's the market opportunity that has very little penetration as I mentioned for um, banks and uh, lenders, uh, from the longest time, most non bank lenders are mortgages or real estate related. There's no to probably one or two that would do business loans. So this is still a huge market that we could gain from. And uh, as for banks, this California loans is over 300 banks. Um, and since we mentioned, we Started by focusing more on the community and CDFIs. So CDFIs alone in California is over 100 CDFIs in California.

Speaker C: Okay.

Speaker A: So, um, and not to mention, you know, community banks, credit unions. So, uh, so there's still plenty, uh, of room and opportunity that, uh, we can go after and really, you know, show them that, you know, how we can really impact the small business when they're most needed.

Speaker C: Like you said, that's just California. But I'm assuming eventually you want to expand to other states and grow, maybe even possibly, I guess, global. Um, that could be an opportunity too, I guess.

Speaker A: Oh yeah, definitely. Our vision is, uh, a scalable system. So, um, as we grow, we'll take care of what we have to take care here in California and we'll continue to grow as, uh, we partner with more banks. Right, um, same thing, A lot of lenders, very state focused. Um, and right now, uh, the five partners that we have is mostly California lenders, uh, and banks. So as we continue to prove ourselves, I think, uh, out of state banks will take us and join us to our mission.

Speaker C: Uh, I have one more question before we get into your story, your backgrounds and things like that, and that is, um, your exit strategy. And I know you're early into this process and you're trying to figure this out, but, um, what. What would make you satisfied or what would make you happy?

Speaker A: Um, I think this is, uh, um, a good question for every startup, right? When you start a company, you also wanted to think how you're going to exit. And there's many ways to exit. Uh, and we basically look into each of the options and it's hard to tell at this point, uh, um, which will be the best option. Um, it could be through acquisitions, uh, or we could, um, go public, or, um, we could continue to expand. I, uh, think the market is big enough that all these three possibilities could happen. Um, now we do have a very interested, uh, institution that are, uh, talking to us and uh, try to exit us already. Oh, wow.

Speaker B: Already?

Speaker A: Yeah. M. But we feel that, uh, we haven't really achieved what we wanted to achieve in the sense to make an impact. I think that's really, uh, critical for us, uh, to really make an impact on the small business, um, providing in that working capital. Um, but we're very excited that someone has that knowledge and um, really, um, proven that our concept, our business, our software works and they want to be part of it. And we're very proud of that.

Speaker C: Well, perfect. Well, I appreciate all the details, all the information, um, about Asinso, I think it really gives us a good idea of um, what it's all about, what you're doing, your goal and everything like that. But um, now let's move into your background, your story and get to know um, more about you. Um, and so let's go all the way back to your childhood and let's get to learn more about Kenny, uh, um, ah, at that time of his life. And so you were born and raised in Guatemala, is that right?

Speaker A: Yes, um, I'm ah, an ah, Asian descendant and born and raised in Guatemala which is uh, uh, uh, South Central America, next to Mexico.

Speaker C: So your parents uh, they moved from. From where to Guatemala?

Speaker A: My parents from Taiwan. So uh, they migrated to Guatemala and that's where I was born and raised as my parents settled in Guatemala and very um, proud, um, be a um, uh, multilingual. Uh, gave me the opportunity to really learn languages without much effort.

Speaker C: I'm curious, so why did your parents move to Guatemala out of all the places, uh, in the world?

Speaker A: Uh, well, uh, my dad was a diplomat to Guatemala. And um, after going there by himself because of work, he fell in love with the country. Uh, he liked the people. He enjoyed uh, uh, uh, the city, he enjoyed the country. Uh, I think that kind of attracted him to say hey, you know, um, maybe we wanted to come over and you know, have a family here and see how far this goes. And that's what he did. So my dad decided to quit and start a business. So you know, he himself was an entrepreneur as well. Um, you know, started a business in Guatemala and brought my mom and grow the family there. Wow.

Speaker C: I mean that's pretty risky, right? I mean to move from one country to another, quit your job and start a business. How was it like growing up, um, in that environment, in a different place and your dad being an entrepreneur? Can you talk about that experience?

Speaker A: Yeah, um, I think I was very fortunate. I didn't feel much different. I mean just like another Guatemalan kid. Born, raised there. Um, you know my friends, you know, elementary, middle school, high school, you know, uh, you know, even until now, I mean we're still uh, in touch and having the, you know, annual, the reunions, my high school reunions in Guatemala. So um, uh, it's exciting and just like you said. Yeah, it's very risky. I mean anything you do in life, there's always a risk involved. Uh, it's matter of um, fact, have you thought it through, uh, if you plan it through and you know, if it's something that you truly believe on it, just, I would say just try it, do it. Uh, and that's what my dad did. And that's how I learned as well from my dad is, you know, um, he went there, he learned about the culture. He uh, really like it. Ah, he like how things are done there, you know, the people. I think that's really important. And uh, by starting a business there, uh, he felt that he can be an impact as well. Creating job, uh, locally and um, grow with the people that treated him well, uh, welcomed him when he first went there, uh, as a diplomat.

Speaker C: And what business uh, did he start? Uh, what did he do?

Speaker A: Yeah, he started as a manufacturer, uh, and then he grew to be an uh, import and export, uh, actually by building products in Guatemala and then shipping back to Asia. So um, that uh, was you know, I think now we kind of ah, doing a lot of things around here in the States, uh, we're buying a lot of products from overseas. But back then a lot of products are made locally. Um, and uh, that's how the business grew.

Speaker C: Now whenever your dad was doing this, did you get involved? Were you curious about the business aspect? Were you curious about what he was doing? Or was that something that was just kind of normal? You didn't really think about?

Speaker A: Uh, I think like you said, I think I learned quite a bit from my dad. That's why um, after my corporate life, uh, I um, enjoy being an entrepreneur as well. Started a uh, few companies myself, uh, an accident. So it's really uh, you know, throughout, you know, my childhood, I, I was, I would do. I remember going with my dad to, to meetings and listening. I would just sit there instead of trying to, you know, running around and play. I would just listen because I'm curious, you know, what they're talking about. Right. I see that how he was able to uh, to negotiate and actually turn businesses into partners, uh, and then partners to friends. And it's about the relationship, the relationship building and really finding the need. I think from a uh, very young age, um, my dad was telling me, uh, as long you do something good for the people and you help them to get what they need, you know, the business will not fail.

Speaker C: Yeah, those are some really great lessons. I love the um, aspect that business is about people, right? If you can work with people, if you can understand people, then you will be successful and then also solving a problem. So I think those are some really great lessons that uh, you know, he taught you back then.

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Speaker C: to get started and I'll see you there. Um, you went to school in Guatemala. You also went to high school there. And then eventually you moved out of Guatemala. Right. You came to the United States. Um, why did you do that?

Speaker A: Right, so I mean um, US has always been known well in higher education, um, and that's really the colleges, you know, universities. So um, you know, and again my dad being there in Guatemala as an Asian, so he still carries some of the Asian cultures with him. So uh, their goals as Asians is to send their kids to the US for the higher education. So I was part of that process and um, was ah, shipped over, went uh, to different uh, schools, interviews and at the end I just fell in love with Boston. So I end up in Boston University. You know, um, I think it's the right timing. Uh, I travel, came to LA in the summer, which is really hard fact. And then you know, went to Canada when it's really cold. So but then went to Boston during the springtime, which is beautiful. Beautiful. Uh, and that's kind of, you know, the right time, uh, and right place and fell in love with Boston and that I decided to, you know, uh, go for my college degree.

Speaker C: And what did you study?

Speaker A: I actually started as a pre med. Um, but then throughout my, you know, last year I, senior year I realized that uh, maybe I can do better to help people as I mentioned. Right. I learned from my dad, if you do something to help people, then you will never fail. So uh, I think um, obviously my friend circles, they were either business or they were uh, in um, politics. Um, so uh, one of my friends uh, has offered me um, to take with him on an internship with the governors office in Massachusetts, in Boston. And um, by seeing what they were doing, putting policies, uh, and thinking of how uh, to help people, that kind of hit me as well. Um, maybe it's going to take me another five years to graduate from Mexico for me to actually help people. Maybe this I can make the immediate impact right away. So um, I make uh, a choice to jump into political science. So I graduated on political science and started to uh, intern for different politicians back in Boston. And I think fortunate. So I was given a lot of opportunities and uh, I was asked to also intern for Merrill Lynch. And that's when I started my first learning of uh, financial, um, industry and how that can be a bigger impact as well. That kind of also got my attention. And um, back then I'm a very curious guy, so I like to learn. So I went at, did my internship, did my round of the different uh, department and um, fortunately I was offered a job right after college and I took it.

Speaker C: Wow.

Speaker A: And that kind of shift me from politics to finance and then, you know, finishing my MBA while working full time. So something different that someone would do, uh, as a, as an Asian descendant. But I think that's been very useful. Um, um. And uh, fulfilled really what, you know, uh, what I like to do at the end and what I'm doing right now. And I've been financed for over 20 years and it's really. I can see how this could give an immediate impact to people and help make people's lives different because policies could take ages to really hit and reach that impact because change of policy is not going to be effective or it's not going to be um, really filled until a couple of years later. But like I mentioned earlier, finance is personal business. Everything you do as I choose to go for finance.

Speaker C: At the end you mentioned um, that you were a curious person that you kind of wanted to explore a little bit. Can you talk a little bit about that? And why do you think you are so curious? Was it your upbringing? Is it just kind of innate to you? Can you talk more about that?

Speaker A: I think uh, learning is important because kind of give you a different perspective. Right. So why people go to school, it's really uh, of making you think uh, differently. And uh, on the side joke is, you know, whatever. Learning college, not really what's going on in real life. So most people like coming out from college not knowing anything. What's going on out there actually. Right. But you know, what difference is that? It gives you a different perspective. Right. Uh, your work give you uh, experience, school give you a way of thinking. So um, you know, I think and one thing that wouldn't, you would never lose is knowledge. Whatever you learn stays with you forever. You're not gonna lose it at any point. So you know, and I think that you know, that's how you know, um, more, you know, really is more you being better informed and you can make Better decisions out of it. That's why, you know, curiosity is good. But obviously, you know, also uh, limit that curiosity because, you know, not everything is, yeah, it's good to try, uh, it's good to know. But it's good to know why not to try it. But there are all the things that, hey, maybe you should try this. Right, Right.

Speaker C: And so your curiosity led you to finance and then you realized kind of how um, impactful finance can be, how scalable it is and how it could really impact um, people. So that's, that's why you fell in love with it. And so can you talk a little bit more about your time at, was it Merrill Lynch? Is that right?

Speaker A: Yes.

Speaker C: And can you, can you talk about some of the lessons you learned and just kind of how that impacted you moving forward?

Speaker A: Sure. I, um, mean just like any other first job, um, it come to you as a new environment that you will need to adjust. But fortunately, uh, I did an internship so I knew most of people that I was working with and um, by learning the opportunity and learning all different aspects of finance, not just really knowing one piece of the finance, um, I kind of rotate, uh, back then there was a great program that allowed me to rotate to different department. Understanding credit, uh, understanding analysis, how the stock market move, uh, why people need to get loans. So all that kind of uh, give uh, me a sense of okay, um, people have options. I just mentioned earlier, ah, you have options, uh, of getting an equity, you have options of getting debt and different type of debt and different type of equities. So um, I think by knowing those uh, options then you can better assess what is the most suitable for you. And uh, back then Merrill lynch gave me ah, opportunity to really learn how people are being analyzed or how the business being analyzed. What is the credit worthiness? Like I said back then, uh, truly all we have is the credit system to judge whether this person is credit worthy. But today we have more options. We have the financials, we have the bank statements, we have all this information tied together that you can really see the whole picture rather than just one piece of information. Back then, uh, when I first started, really um, took time to really learn that and be able to provide early time capital to businesses. Back then that was needed, uh, and I remember back uh then my first loan was uh, to a smaller, uh, also an import export company, um, because my dad did that. So uh, quickly I was able to understand because like I said, you have to understand, um, also um, uh, the whole picture in order to assess and make A decision of it. So I was quickly understand uh, how that business model work. Um and really uh, if you don't understand it then it's hard for you to read the information that is being provided to you. So um, and that would give you only very little options. But you know by understanding it then you know kind of different options pop up my head and uh, I was able to structure and actually help them to really grow um the company. And uh, they was three years later they just, they got acquired, they exited, the owners exited um, because you know of that capital. I still remember I got a letter when the company got acquired and you know thanking us that we were there to help them. I think that's my first thank you letter from a customer that we really did something for him and uh, helped his business. Uh, I think that's kind of carry along with me until today. So I want to continue to help people uh, and help them grow. Like I said, um, a lot of times when as an investor, myself as well, we are no longer just investing for the sake of investing. I think um, uh if you invest with a purpose, like I said, you're not going to go wrong with it. You invest uh, with a mission uh, of helping people. That investment will grow.

Speaker C: And so after your time at Merrill lynch, what did you do next?

Speaker A: I uh, was recruited uh to another uh, company at a smaller broker dealer. And um, that broker dealer Wessel was the first technology that was in the 90s before E trade came out, the online trading. Um so that company was really focusing on how to make online trading happen because back then you will have to call the broker and the broker will have to write a ticket and trade it for you. You can just log in and trade your stock yourself. Uh so we were in the mission of creating that so that people can just trade themselves without going to your broker. And um, due to funding reasons uh, we get beat up by E Trade. So what the first, you know, the big online trading out there that you know um, later on everybody follows. But I uh, think the owner was also fortunate, you know they were able to exit you know uh, how to merger because um, I think we have a good, very unique tools that allow you back then to really do cross border trading um which um, now you can see more and more with better technologies. A lot of things now is global. It's no longer just local but it's more global. So back then we have a uh, system that was able to connect both end and do that uh, overseas trading as well. And all the Stock markets. Um, so uh, it got acquired and um, throughout the acquisition, um, uh, I was uh, offered at Citigroup and that's why I end up here in California. Ideally. Back then I was thinking, hey, I mean finance, maybe New York will be a better place for me to live on and work. But ah, uh, instead I was offered to come to California. And until today, I don't regret it. I love California. I mean, it's become my home now. And um, you can beat the weather here in California. Right?

Speaker C: Right. So you got recruited over to Citi and what, what was your position at that time?

Speaker A: I went through different positions. I, I started as a, uh, compliance officer. Uh, and then, um, I grew myself to be an area manager and uh, become a regional manager.

Speaker C: Okay, and so how long were you at Citi for?

Speaker A: I was there for like four and a half years.

Speaker C: Okay.

Speaker A: Then you know, follow my boss, uh, to different banks. So.

Speaker C: Okay.

Speaker A: Being a different banking since then. Um, and in banking, uh, uh, I started stay a uh, junior credit officer and then uh, become a regional credit officer as well in a regional bank. And then also um, was tasked with the uh, expansion, uh, before the 08 expansion of the uh, retail banks. So um, like I said, fortunate to have different opportunities, wearing different hats. Um, and like I said, my personality, uh, being a curious. So I enjoy challenges. Uh, because people say, hey, but if you went to credit, why you didn't shift to expansion? Well, because M. Credit, now that you learn credit, then um, you need to learn how to expand that as well. Because without learning the expansion, then, you know, a, um, lot of times one credit officer, for example, uh, a mortgage underwriter, all they learn is how to underwrite mortgages. But they don't know how to underwrite business or underwrite commercial real estate. Right. So by going to the other side as well is to learn what business is out there. Right. Besides what we see on paper, what is truly going on in the field. Um, as I mentioned, not just look at them like a credit number, but really look at the whole picture. Understanding the business, understanding the owner who is applying for the loans, uh, that will give you even better judgment of how that business is doing and how successful this business can be, uh, by taking your loan and how your loans can make an impact.

Speaker C: And so eventually you started your own business actually, um, called simply Loans. Can you talk about why you did that and um, your experience?

Speaker A: I think, you know, um, since my young age, you know, for my dad, I guess I kind of inherited that entrepreneurship. So after the corporate world, um, I was um, recruited by a few clients of mine and, and that was after 2008, um, 2015, I recall. Um, let's do something. Basically, ah, one of my clients told me, let's do something together. I'm like, why? The banks are not lending that much. And um, everything is so slow because technology was not break yet. Um, so um, let's do something that make lending easier because uh, my client like, you know, um, I remember uh, when we processed this loan, took us, you know, really almost a month, really a month to really review the financials. You know, looking at this paper, everything is very manual. Uh, so we're like, you know, it shouldn't be that complicated, right? So, and especially when you buy a home, you know, you're looking at an individual loan. You're not looking at the whole business. You're looking, you know, whether this person can make enough money, ah, and pay. So we put together a team and uh, we created a formula and we build simple loans, really a digital mortgage, uh, company. Back then, one of the few, I think, um, uh, right after what, you know, Rocket Mortgage came out back then was Quicken Loans. Um, and we kind of see that could be done. So we um, build something, uh, at about the same time as then. Um, so I think uh, we were very happy for what we have built. And um, so same thing, we were approached and made an offer and we think that uh, the business will grow even bigger, uh, with a bigger company. So we exited that company and that's how my um, entrepreneurship continues. So after that then pandemic hit took a break. We look at different, other things. Uh, uh, I make some investments during that period of time and then uh, I was fortunate uh, to meet with our CEO Winston DeMarillo to share that same mentality and share that same concept of mission to really build uh, an inclusive our technology that will make an impact to daily people. Um, so I joined, we put uh, our brains together and um, Accento is part of a Tallinnal Ventures, which is um, the venture studio that really create software for inclusiveness. Um, and uh, throughout their portfolio we will see we have another company that focusing on immigrants. Uh, uh, and Accentso focus on small business needs. Um, so uh, every company that we create has a mission built into it and has a purpose to it and I think has served us well. And go back to what I like to say, if you invest with a purpose by helping people, you will never fail.

Speaker B: Hey, I hope you're enjoying the show. But before we hear about Asenso Finance's company structure. I thought you might be interested in hearing a few stats about the company. The company is currently located in Los Angeles, California. Asenso Finance was chosen to participate in Mercury Bank's race program. Asenso Finance is backed by Tolino Venture Labs. And in the most recent year end, Asenso generated $80 million of revenue and had a net profit of $1,641. Okay, now let's get back to the episode.

Speaker C: So I think you, you know, mentioned kind of the, the history of Asinso. Um, you said that Winston created Tolino Venture Labs and uh, Asenso was created, uh, by uh, Tolino.

Speaker B: Can you talk about the whole structure

Speaker C: and how everything works?

Speaker A: Venture Studio is a new concept that came out just recently. Uh, instead of a venture capital company who just give you money to invest and just expect returns and they call it a day, Venture Studio m model works differently. Venture Studio, besides providing you, uh, the seed money, uh, they also help you to build a team to build the system itself, right? Uh, because a lot of times, uh, any founders will think, well, I have this great idea or uh, I built this, uh, without thinking, okay, once m, you have the technology, how you going to commercialize, um, it, how you going to, um, bring this to the market? And I think that's very important. Uh, a lot of, you know, um, either founder who are from the tech background or founders from the business background, um, who need someone to build it. So Tolino has over 65 engineers. Their job is to build ideas. Right? Um, and a lot of times people say, ah, ah, building a software is easy. Uh, not really because you probably build 10 different softwares, but probably just one that actually works because the functions, the codings, there's a lot of components that's built into it. So uh, if we were a business background like myself, I wouldn't know how to build it. I would need the engineers team to actually build it and build my idea. And that's what Tallinna Ventures, you know, offers. Right? Uh, we, we can distort, we conceptualize the, the idea and then we build it. You know, we build it, we test it, and at the same time, on top of that, it's very important, besides the founder itself, you have to also have a team, right? Without a team, you can grow anywhere, right? So like, you know, I think they, they were saying, you know, two brains always think better than one, right? So if you have 10 brains are much, much faster and grow bigger with that. And that's what also Tellino offers to build A team for you. Uh, we go out the market, we see the potential candidates for different positions and we put it together. Now the founder would then have a team to really go and grow the company.

Speaker C: Do you work on uh, other parts of different companies or are you solely focused on Asinso?

Speaker A: So I do also um, um work. I'm um, actually a um chief operating officer as well for Tolino. And um, each of our partners or um, management team, um get assigned to different new ventures that uh, Tonino decides to invest on. Right. So um, for example Asenso, uh, when we have the idea, we test it, it works. Sponsor for itself to be independent. Then we'll assign a CEO, we'll assign a president, uh, the cfo like I mentioned, we assign a team for them and once the company raised um, the funds and grow independently, then the management might or may not shift depending on uh, how things goes. Um, and um, we would step back to Tolino and go and be appointed to another company that might spawn out from there.

Speaker C: I see.

Speaker A: Um, but we do get assigned to one company at a time to help to grow that company. Uh, and then once it's operational then um, further discussion will happen to decide will we continue uh, or we have uh, better um, management team that we can build around it.

Speaker C: I see. Okay. Yeah, Ah, it's an interesting concept how it brings in the venture capital aspect but then also creating a team around it. And so you're currently the president but um, eventually that could change depending on the trajectory of the company. You could bring in a CEO and then you might work on something else. Is that about right?

Speaker A: Yeah, that's a possibility. But uh, that's ah, as I mentioned will happen uh, after the company stabilize it. Right. And then um, finding a good leader is not easy.

Speaker C: Right.

Speaker A: So it would take time and if there's no one that suitable for the time being then I will continue to lead a sensor as long as it's needed.

Speaker C: How's the decision structure? Like how are decisions made in um, this company? So you're the president, um, do you make all the decisions of what a CINSO does?

Speaker A: Like any other company we have the management team, we have a board of directors. So the board would dictate the strategic, the overall high level planning directions uh to the CEO and then the CEO will work with the president to um, to implement and uh, execute uh, the plans and operations of the company. So um, once it's spun off, it's no different than any of the other company but a better structured startup than A one man startup, um, per se. So we have the uh, full support from the parents, the venture studio and then we have our own independent team. So uh, one of our board directors is the former CTO, uh, of eBay, who actually advised on the technology side. Uh, we do have uh, an executive, um, vice president for California banks to advise us uh, on the banking and then we also have um, an attorney to advise on all the legals and compliance. So we cover all different aspects. Uh, so like you know, building a strong board is also important. We believe that uh, a strong board will help the company uh, to grow even better.

Speaker C: Okay, I see how that works. And moving more into the company. Obviously since I was in a early stage, you have some traction, you um, have some funding. Um, but what's the biggest challenge that you've faced so far in trying to get this company up and running?

Speaker A: Um, the biggest challenge is always um, fine tuning your product to the market. Uh, and be honest, true, no technology is perfect, uh, and would never be perfect. Uh, and that's how we go through the process and learning and that's what AdSense did. Right. Even though we were uh, grant winner of the most ready, uh, software to be on the market by fdic, we're still learning at this age right now today is that the product will never be perfect. It would just get better. Initially like I mentioned, we thought of lending first, nothing else but um, on providing the capital. Then what? Then just like I mentioned, just like the regular vc, I give you money and hey, go and knock yourself out. But the owner is like okay, then great. If I do well and I know what I'm doing then, but I still need support. Any owner or founder needs support. Nothing can be done. Uh, like I said, one man's shop would never work, right? You need a team. As for an owner, why do they need capital so they can hire people to help? You know, you don't run a restaurant just having a chef, you need a waitress, you need a hose, you need the other uh, backed support the cleaning. So you need the team. And I think um, the essential uh, challenge is really build that software that really can help. Not just on the capital but like I mentioned, all the product for a business to be complete. Right? So we're giving them enough tools so that the owner have the tools to build that team as well.

Speaker C: It's an ongoing, ongoing challenge which makes uh, a lot of sense. And so you're iterating and trying to create the best product for your, for your customers basically. Um, now besides that besides making the best product, what's something that maybe keeps you up at night either about the market or about the company that um, you know, sometimes you're like a little bit worried about

Speaker A: like any other companies I think, uh, and in the leadership position you wanted to think obviously the economy, uh, how the economy is going to go and how that's going to affect your company moving forward. The products that you're offering and um, your team, uh, how good shape your team is, do you need to improve, do you need to decrease and how to manage that budget you mentioned earlier, what is the run rate, why we can say that we can last in two to three years compared to probably a few months ago. I would say probably we only last us 18 months. Um, because we sit down, we plan it and that's what keep me ah, uh, late at night is to how can I improve the efficiency if I'm helping my client to improve their efficiency, how I can use that to improve my efficiency at all? Right. So that's when uh a lot of decisions, a lot of uh, discussions uh, and I think that's uh, uh a brainstorming of the team is so critical. Uh, it's probably not just me but my team being so supportive and really come out with a, ideas and turn that idea and execute those idea and make it reality. And that's how we were able to project a longer term uh, by properly making more efficient. And that efficiency had to be on constant monitor. You can't just say hey we cannot do this. Ah, it worked great then that's it. Then things. If you don't follow up and constantly monitor it, things might fell off. So unfortunately that's just life. And at the same time for us, uh, once we close our round of investment, uh for us we do have uh, I mentioned from our system being transparent. Same thing with our investors. So we have a quarterly investors uh, uh meeting that uh, either on Zoom, which is still most efficient since it's nationwide, uh and um, have that to really communicate to the investors how we're doing, what have we done and how much impact so far have we done as well so that your money is invested and the purpose and how that purpose had become reality or not.

Speaker C: I know that you mentioned a few of those board members that um, are on your board. Um, but can you talk a little bit more about your team, um, who's on your team and what do they bring um to, to make Asinso, uh you know a ah, successful company?

Speaker A: Definitely. I mean uh, a team is um, you first have to have a working chemistry. Uh, just because a person have a great resume doesn't mean you fit well. And that's what I learned through life and being in management for corporations, um, larger corporations out there is that you know, uh, the important for your team to be successful is really have that sense of chemistry and definitely of course the background of what they do and the skills that they can bring in to their titles. For example, uh, our chief marketing officer, she has been over 30 years in the field of public relations and marketing. So she understands uh, how information can be delivered and she can run a shop where her team members that being sourced by her understands what our mission and how we can deliver that message uh, to the public. For my cto, um, he is um, a tech guy that built other softwares before so he understand the difficulties or the, the easiness of building certain type of softwares and how we can make um, our system um, upgradable, scalable and that's important and not just know how to build but really understand how this thing can grow. I think that's another thing that uh, my team, uh, which is also my job to share with my team too. Not just see what we can do right now, but how this thing can live further um, two years later. How this thing, this technology can help people and not just to build it. Now okay, we can have some couple loans and let it be. No, we're going to uh, continue to see how we going to improve this and how more impact we can make with this. Right. So that's, that's a requirement for my team and for any team members that Talino come up with. Right. Um, our cfo, right. She again background in accounting, but not just accounting, but you know, also analyzing you know, how the company going to be managed financial wise, what our run rate, you know, what do we need, you know, uh, how much uh communication as well, uh, with marketing do we need to communicate with our investors. And that's what I said it is. Our part of our governance is to really provide the transparency as well to our investors by providing them the quarterly meetings once we conclude our investment rounds.

Speaker C: You mentioned investors and um, you're raising through equity crowdfunding, uh, right now. And I was wondering if you could tell us why you chose equity crowdfunding. You think that's a, ah, good, um, route for asinso?

Speaker A: Good question. I think um, equity crowdfunding has two purposes. Right. One is besides the investor, uh, allowing small uh, investors rather than um, VCs or institutional investor to Invest in you. Um, I think it's something that was created to allow um, individuals, non institutional investors to also invest in the potential of a company. Ah. Which is why a lot of companies now try to learn how to crowdfund in different platforms. The other way also to look at crowdfunding is also uh, exposure. The platform is built to let people to see what you have as well. Right. So if uh, um, besides we marketed, you know, uh, on, on different social medias or you know, newspapers or magazines, you know, I think that's uh, a good way for uh, people to get to know you. And as an investor you tend to be more curious. Hey, what is the company about what I'm m about to invest. And I think at uh, least for us it's important we want people to not just know our brand name, but really know who we are and what we do. And that will really help uh, us as we grow in the market as well. Um, because if people just see your color, see your brand, but I don't really know what they do, people have that mistrust there as well. So I think this is a good channel, um, that um, people will pay more attention to you, uh, and that's where also you can really deliver your message, uh, more openly than maybe a magazine. You see a picture with a couple of words because there are limitations. Uh, like I said, you know, people would just. Okay, great. And then look for the next page.

Speaker C: Right, right. No, it's perfect. That's, that makes a lot of sense. Um, and so I have, I have one final question and kind of looking back at, you know, your, your upbringing, you were raised in an entrepreneurial household and then eventually you started your own, um, you know, business. And just kind of thinking back through the lessons and those experiences, what do you think is more important in entrepreneurship? Is it more important for an entrepreneur to be courageous or intelligent?

Speaker A: Me personally, I believe you need both. Uh, there's never one better than the other. Uh, the reason why is uh, being an entrepreneur is not easy. Uh, especially if you're coming from a corporate world, you're going to start feeling unstableness because you won't have that paycheck coming in every month. Uh, you have to be very hands on and you have to really start thinking critically and try to hopefully foresee and avoid issues, uh, or mistakes. And that requires courage. If you just work for a company as an employee, you probably, that's very limited that you have to do or think. Um, intelligence, um, is also important because you won't be able to navigate, uh, all this different information and different resources without intelligence. And I think that pretty much given everybody has a sense of intelligence, no matter who you are, um, it's matter of. That's why you need to. If you're intelligent but you have no courage, then you probably won't take that step. You're like, man, why would I want to bother? I want to enjoy my life. Which perfectly fine. Some people feel that that's the best way for them, but I think is, uh, also I would like to ask challenges if you enjoy taking challenges. That's what entrepreneur is all about. Taking new challenges and not be afraid of failure. Because every time you fail, you learn something. And like I said earlier, whatever you learn, it go with you for the rest of your life.

Speaker B: This has been an episode of Seeking Startups.

Speaker C: I'm your host, Maxim Davis, and thank

Speaker B: you for listening to the whole show. Make sure to subscribe, leave a rating and a review, and share this episode once again. If you're interested in investing in this company, you can find a link to their fundraising page in the description below.

Speaker C: Before I let you go, if you're

Speaker B: a founder who's interested in getting highlighted on the show, email me at maximeeking Startups. Thank you. And until next time, keep investing in the future.