Daokoudai

Daokoudai, legally Beijing Daokoudai Technology Co., Ltd., is a financial technology company established in Beijing in November 2014. The company was initiated by a company under Tsinghua Holdings and founded based on the research results of the Internet Finance Laboratory of Tsinghua University's PBC School of Finance. Its CEO, Luo Chuan, graduated from Tsinghua University with a master's degree in 1994 and subsequently worked for Microsoft, serving as the general manager of MSN China, founded and led MySpace China, and was the founder and CEO of 139 Mobile Internet Company, a subsidiary of China Mobile.

The firm operates as a financial technology service provider for small and medium-sized enterprises (SMEs), focusing on supply chain finance. Daokoudai pioneered a business model that combines social networking with supply chain finance, initially leveraging the Tsinghua University alumni network to identify and vet creditworthy core enterprises. The platform's primary service involves facilitating direct, collateral-free financing for SMEs, which are often suppliers or distributors to these larger core enterprises. It addresses the financing difficulties SMEs face due to a lack of fixed assets for collateral and information asymmetry with traditional financial institutions. Revenue is generated by providing a network lending service platform that connects these borrowing enterprises with individual and institutional lenders.

Daokoudai's core product is its online financing platform, which centers on accounts receivable financing. This model allows suppliers to secure short-term loans against unpaid invoices from creditworthy buyers (the core enterprises). The company developed the "Junjunmei Risk Pricing System" and the "Daokou Cloud Financing Service System" to enable credit transmission along the supply chain and manage risk. For lenders, the platform provides information disclosure about the financing enterprises and employs a mechanism for limited, dispersed lending to help them manage risk. In 2018, Daokoudai formed a strategic partnership with the China Association of Small and Medium Enterprises to further develop its credit evaluation system and explore the use of blockchain technology for more efficient accounts receivable financing services.

Keywords: supply chain finance, financial technology, SME financing, accounts receivable financing, P2P lending, risk management systems, direct financing, credit evaluation, corporate finance, Beijing Daokoudai Technology, Luo Chuan, Tsinghua University, asset-backed lending, online lending platform, corporate credit, fintech services, peer-to-peer finance, SME credit, trade finance, working capital solutions