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Kiva Zip: Crowdfunding Small Business in Brooklyn NY
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Kiva Zip: Crowdfunding Small Business in Brooklyn NY

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  • 1. 1Bringing Kiva Zip loans tolow-income and financiallyexcluded small businessesin BrooklynBriefing to Brooklyn Chamber of CommerceApril 20131Monday, April 8, 2013
  • 2. 972,016 entrepreneursfunded since 20051.3mil registered lendersIn 2012 alone, US$150 milcrowd-funded loansUS$1mil every 2.5 days!First, a little bit about Kiva.org2Monday, April 8, 2013
  • 3. 3#10% interest loanproduct fundedentirely via onlinecrowdfunding3Monday, April 8, 2013
  • 4. 4#2Small starter loans up to$5,000 designed for lowincome and/or financiallyexcluded entrepreneurs4Monday, April 8, 2013
  • 5. 5Or ... #3“Getting ordinary folks to fundloans to those smallbusinesses traditional lendingcannot reach.”5Monday, April 8, 2013
  • 6. 6Completely new model of microlending specificallyaddressing needs of US micro-entrepreneursKiva Zip loans offer small biz 0%interest substitute to funding yourworking capital using credit cards6Monday, April 8, 2013
  • 7. Kiva Zip: reinventing small biz borrowing7Monday, April 8, 2013
  • 8. Kiva Zip: reinventing small biz borrowing8Monday, April 8, 2013
  • 9. Kiva Zip: reinventing small biz borrowing9Monday, April 8, 2013
  • 10. Kiva Zip: reinventing small biz borrowing10Monday, April 8, 2013
  • 11. 1111Monday, April 8, 2013
  • 12. 12Trust =Character +Competence12Monday, April 8, 2013
  • 13. Kiva Zip “Trustees” and why they matterIn the Kiva Zip model of character-based lending, “Trustees” -organizations or individuals that work closely with smallentrepreneurs - are absolutely crucial.Trustees are those entrusted to recommend the most trustworthysmall businesses for crowds to lend to:- Identify eligible and deserving borrowers for 0% interest loan Publicly endorse them on the Kiva Zip website Support the borrower in their business (advice, mentorship,incubator space, networking)Trustees have no financial risk if a borrower they endorse does notrepay, but their reputation is tied to borrowers’ performance.13Monday, April 8, 2013
  • 14. 14How Kiva Zip works in practice:Victor’s Cafeto CoffeeshopKiva Zip Story14Monday, April 8, 2013
  • 15. Victor, Cafeto and a 0%, $5,000 loan15Monday, April 8, 2013
  • 16. Victor’s ‘trustee’, MEDA16Monday, April 8, 2013
  • 17. MEDA ‘endorsed’ Victor17Monday, April 8, 2013
  • 18. Victor’s‘crowd’ oflenders18Monday, April 8, 2013
  • 19. Lendersexpressingsupport,and evenbecomingcustomers19Monday, April 8, 2013
  • 20. Victorupdatinghislenders20Monday, April 8, 2013
  • 21. Victor is now 100% repaid…21Monday, April 8, 2013
  • 22. …And he’s applying for a second, larger loanfor his 2nd coffee shop 1 year later!22Monday, April 8, 2013
  • 23. …And he’s applying for a second, larger loanfor his 2nd coffee shop 1 year later!The best metric of all:Victor’s 2 new coffeeshopscreated 7 new jobs that didn’texist 13 months ago exist23Monday, April 8, 2013
  • 24. Victor then endorsed his friend Rocio for a loan24Monday, April 8, 2013
  • 25. What’s in it for trustees?EmpowerClientsIf you already work with financially excluded clients(unproven startups, or low credit score entrepreneurs)...Kiva Zip will give the clients you endorse access to 0% businessloans they would otherwise not qualify forPromotewhat youdoIf you already do great work in your community that largelygoes unrecognized or unpromoted...being a Kiva Zip trustee automatically allows you to promoteyour work (in your own words) to >1 mil socially-conscious Kivalenders everywhere. Also participate in Kiva PR initiatives.IncreaseImpact,HelpFundraiseIf your organization’s potential funders care about tangibleimpact (businesses helped, $$ generated, jobs created)...Kiva Zip helps you help more small businesses take off, faster.Endorsing a deserving borrower online takes 15min. Reducingtime and cost for raising capital means you can impact more.25Monday, April 8, 2013
  • 26. 26Examples of Organizationspartnering Kiva Zip as trusteesSEEDSPOTIncubator, AZGREENHORNSnonprofit, small farm-innovationSYRACUSE UNIVERSITYInstitute for Veterans & Military FamiliesTEAM ETSY LITTLE ROCKCommunity Center for African American BusinessSt Louis, MOOakland City Church(Pastor Josh McPaul)26Monday, April 8, 2013
  • 27. 27Trustees we’re partnering now in BrooklynCAMBA,Community Grassroots& CDFI FlatbushBOC Netnonprofit & CDFI - social and economic justiceRHONDA Schaller (individual)Artist, Writer, Educator at PrattDesign InstituteTEAM ETSY New YorkCommunity of Etsy SellersKiva needs BCOC’s help toconnect/refer more grassrootorganizations working withexcluded communities in BK -churches, communutyoutreach centers, education,immigrant communities,female empowermentRecent BK-based Start-Uprecently funded via Kiva Zipin March 2013, wants to payit forward.27Monday, April 8, 2013
  • 28. 28Brooklyn Chamber of Commerce+ Local grass root orgs as trustees/recommenders+ Kiva’s 1mil socially conscious lendersTogether:we can get work together tofinance good businessescommercial lending cannot reach28Monday, April 8, 2013
  • 29. Other resources:Press, About Kiva, Kiva Zip borrower video2929Monday, April 8, 2013
  • 30. Kiva Zip: Some recent press stories✴Bill Clinton Launches Kiva Zip in Little Rock, AK http://www.opednews.com/articles/President-Bill-Clinton-Att-by-Michael-McCray-130320-618.html✴Bill Clinton calls Kiva Zip a “very big deal” for small business http://techcrunch.com/2013/03/22/kiva-piloting-microlending-for-u-s-small-biz-clinton-says-its-a-very-big-deal/✴Kiva funds one million entrepreneurs http://www.marketwire.com/press-release/kiva-touches-one-million-lives-worldwide-with-crowdfunded-loans-1768754.htm✴Huffington Post articles on Kiva Zip http://www.huffingtonpost.com/kiva-zip/✴Creating Jobs for Native Americans with Kiva Zip http://www.huffingtonpost.com/kiva-zip/✴Kiva Zip and Character based lending http://www.fastcoexist.com/1679137/kiva-s-secret-project-to-let-you-give-peer-to-peer-loans3030Monday, April 8, 2013
  • 31. And finally....If I haven’t run out of time -Video: “Crowdfunding Small Business in Brooklyn, NY - 1 smallloan at a timehttp://youtu.be/LZRp7CmPpi03131Monday, April 8, 2013
  • 32. http://www.kiva.org/liveWatch all loans as they happen live online!32Monday, April 8, 2013