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Dolo Finance
Bridging Crypto Liquidity with Real World Loans
USA, Texas
Market: Financial services, Blockchain, Crypto currency
Project stage: Prototype or product is ready
Market: Financial services, Blockchain, Crypto currency
Project stage: Prototype or product is ready
Idea or High Level Concept
We’re building the first credit facility for FinTech startups. Powered by Blockchain. We’re reimagining how new FinTechs can grow and leverage capital from the ground up.
Territory of the product or service implementation
USA
Traction and Current Status
We are currently in the process fundraising, conducting customer discovery and closing our first pilot engagement.
We have an alpha product built that includes a loan originator dashboard for debt capital requests, interest/principle payments, and a transaction ledger.
We have an alpha product built that includes a loan originator dashboard for debt capital requests, interest/principle payments, and a transaction ledger.
Problem or Opportunity
Traditional debt capital works well for established lenders, not new FinTechs. These innovators disrupt traditional lending across domains, geographies, and embedded finance.
The number one problem for these startups is getting capital for lending. Their only option is to use their own cash on-hand or deal with cumbersome private investors. These efforts prevent them from rocket ship growth and cause operational nightmares.
The number one problem for these startups is getting capital for lending. Their only option is to use their own cash on-hand or deal with cumbersome private investors. These efforts prevent them from rocket ship growth and cause operational nightmares.
Solution
We’re building the first credit facility for FinTech startups and leveraging DeFi as a fundraising mechanism to pool together capital through Stablecoin USDC.
Customer Segments and Market
We are targeting loan originators who underwrite debt in the small and medium sized business categories. This represents a $4.8T TAM opportunity globally, with the largest subset residing in the US.
Revenue Streams and Cost Structure
Our revenue will be sourced from the interest spread between loans we issue to originators, and the crypto-capital raised from our DeFi Protocol
Business Model, Chanells, Metrics
Dolo Finance's primary business revolves around delivering undercollaterized, leveraged debt capital to loan originators seeking fiat. The financial backbone of this capital will be provided through a DeFi protocol mechanism backed by Stablecoin USDC (circle) and favorable APY yields.
Competitors and Existing Alternatives
We have yet to identify a clear competitor operating in the US market. Goldfinch is a similar entity that operates outside of US markets. Sivo is another company that offers under-collaterized, leveraged loans over time but they were not designed to incorporate web3 concepts into their business model.
Advantages or differentiators
We will be the first entity in the US to offer debt capital to loan originators using a DeFi protocol, while providing a highly streamlined process to secure said capital using scalable, general purpose smart contracts tailored for this industry.
Risks
Regulatory | Given the nascent stage of this industry, regulatory guidelines may evolve over time. To mitigate this threat, we are working with highly experienced lawyers to develop guardrails against regulatory scrutiny for the long run.
Volatility in Crypto | While cryptocurrency and blockchain technologies remain a hot topic of today, it's investors and active participants bear the inevitable cost of volatility and sentiment fragility that remains in the market at this time. Because we are primarily operating with stablecoins, we believe we will largely remain immune to unpredictable market swings.
Volatility in Crypto | While cryptocurrency and blockchain technologies remain a hot topic of today, it's investors and active participants bear the inevitable cost of volatility and sentiment fragility that remains in the market at this time. Because we are primarily operating with stablecoins, we believe we will largely remain immune to unpredictable market swings.
Won the competition and other awards
Finalist in Unicorn Pitches - FinTech Startup Battle, Feb 22, 2022
Money will be spent on
Building our team, prototype, and enabling rollout of pilots with customers.