One of the most inspiring Internet financial startups

Only by taking such a provocative title, can express the "interpersonal Harmony" This project brings me the surprise ...

Speaking of "Interpersonal Harmony" (Click to enter the promotional page), is one of the most inspiring internet financial startups I've ever seen. And I give that compliment not because of the future that it has opened, but because of the nature of finance.

The essence of finance is credit, and the essence of credit is man to person. In the former industrial era, the most typical financial scenario was private lending. In the big industrial era, institutional finance began to appear, then the bulk of the transaction and the stranger market. Why do you want to be a stranger? Because you are in a circle of acquaintances, there is not enough trading resources because the market is too small, and enterprises have the impulse to expand profits indefinitely. When technical means reduce asymmetric information, a large market made up of strangers becomes possible and becomes the main form of trading.

But in the post-industrial era, the market has expanded to the limit, the problem of commerce is no longer the lack of trading resources, but how to reduce the overall market transaction costs. Where does the transaction cost come from? Largely from the isolation of the parties to the transaction. In the stranger market, the original person's trading relationship has been embedded in many layers of "intermediary", we should not only pay for the professional services of intermediaries, but also endure the exploitation of information monopoly by intermediaries (the original intention of the intermediary is to solve the asymmetric information, but will eventually become the advocates of asymmetric information, doctor and disease relationship). Finance is a very typical industry, all financial institutions in the resolution of information asymmetry, while the use of asymmetric information to obtain excess profits-we see the current financial market scale than ever before, but transaction costs? Maybe it's not as good as the old people finance.

In fact, nagging so much, we just want to point out a core proposition of this era, that is "how to guarantee the size of the transaction under the premise of creating an acquaintance trading environment, thereby reducing the transaction costs of various businesses". Thank God, social networking has given us the possibility. The "interpersonal harmony" mentioned in the opening paragraph is actually a social-based financial platform.

"Interpersonal integration" from the bottom look, is p2b net loan (P: Individual, B: Small and medium-sized Enterprises, detailed introduction to see our previous report), and the top is a SNS. Investors and the invested enterprises in the investment event ("who" voted what "Project") for the node contact, forming a community, and eventually formed an "investment map."

In each community, there will be their own division of labor and governance structure, users may spontaneously play different roles, contribute different resources. For example, some people will become opinion leaders, some will become followers, and accountants, lawyers and other professionals can provide their own professional ability to investigate, assess and supervise the project. As financing entrepreneurs, third party regulators (platforms, guarantee companies), investors and other associates are in a social environment, everyone can communicate in a more parallel and transparent manner. The key is to allow business owners to precipitate more "soft" information in a social way (enterprise's unstructured information, such as corporate reputation, character, personality, interpersonal relationship, etc.), other than structured information such as financial statements.

Why is it meaningful to socialize around small and medium enterprises?

Give two examples:

1. In recent years, various social ventures (including our 36 Krypton). VC investment and do small and medium-sized enterprises debt investment is not essential differences, for the data is not complete enterprise type, and "people" on the enterprise's impact is much greater than "assets." VC often said, "cast people do not project", in fact, the small and medium-sized enterprises in debt investment also apply.

2, the relationship of loans. "Relational loan" is a set of credit technology developed by traditional banks for SMEs. The technology emphasizes the "relationship" between financial institutions and enterprises, and through long-term and multi-directional contact with enterprises, it precipitates a large amount of soft and private information. "Relational lending" is becoming more prevalent in the practice of small micro-credit practices in traditional banks, and this set of "interpersonal harmony" can be understood as the Internet version of relational loans.

Once a company has a lifelong relationship with an investor (in other words, becoming an acquaintance), it will bring about a sharp drop in transaction costs. At the user's point of view, the various intermediate costs (such as warranties and service charges) paid for hedging risks can be omitted. On the corporate side, each bond-issuing process will be marketed by a huge potential investor, targeted at its own fan community-and, if an analogy, is understood as a miniature private placement, which will lead to significant improvements in financing costs and capital reliability.

Second, "Interpersonal harmony" is not a case?

From the point of view of Internet credit, yes. But if you broaden your horizons, you will find that "interpersonal integration" is not isolated, and many other startups are trying in the direction of "acquaintance trading" or "trading acquaintances". Foreign useful acquaintances to do the nanny booking urbansitter, have to do the financial management of social LearnVest (perhaps this definition is not accurate). There are domestic acquaintances of second-hand goods and services transactions "small trade" and "have leisure", but also through the relationship of mining to do the workplace community "tenderness", the field of friends similar products are more, more typical of "so-and-so" and so on.

Third, why do you watch the "interpersonal integration" mode?

First of all, it must be admitted that "transactional socialization" is a huge problem, and that individual ability does not comb each node clearly. But in the "interpersonal integration" This project, I can at least give three points of positive:

1. This is the real financial catalyst. In all Peer-to-peer still engaged in intermediary mode ("Investor-platform-Enterprise" principal-agent structure), "interpersonal integration" has been on the road of self deconstruction.

2, in line with the nature of the personification of small and medium-sized enterprises, the use of social relations sedimentation, reducing the corporate debt investment and financing transaction costs.

3, public-raised + crowdsourcing, to maximize the mobilization of community resources. In project funding, "interpersonal integration" through the community to raise. And in the development and management of projects, you can use the community to carry out crowdsourcing. I've heard a peer-to-peer entrepreneur talk about one thing: in their user community, a court person can look at the various filing materials of the enterprise, and everyone knows it. He doesn't have to disclose any confidential information, but everyone knows that it's only 19 to follow him--it's actually a manifestation of the ability crowdsourcing. Think that if your community brings together lawyers, accountants, industry experts and even hackers, is it almost possible to make a team of VCs?

Of course, "interpersonal integration" is still in the Stones stage, on the credit precipitation and dissemination, on the Community Division of labor and governance of many ideas have not been product. However, since we are on the right path, I believe that sooner or later it will bring important impact to the industry.

The first edition of the "Interpersonal harmony" platform is about to be launched, and VCs can begin to pay attention.