Kiva Zip: Crowdfunding Small Business in Brooklyn NY

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Kiva Zip: Crowdfunding Small Business in Brooklyn NY

  1. 1. 1Bringing Kiva Zip loans tolow-income and financiallyexcluded small businessesin BrooklynBriefing to Brooklyn Chamber of CommerceApril 20131Monday, April 8, 2013
  2. 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. 3#10% interest loanproduct fundedentirely via onlinecrowdfunding3Monday, April 8, 2013
  4. 4. 4#2Small starter loans up to$5,000 designed for lowincome and/or financiallyexcluded entrepreneurs4Monday, April 8, 2013
  5. 5. 5Or ... #3“Getting ordinary folks to fundloans to those smallbusinesses traditional lendingcannot reach.”5Monday, April 8, 2013
  6. 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. 7. Kiva Zip: reinventing small biz borrowing7Monday, April 8, 2013
  8. 8. Kiva Zip: reinventing small biz borrowing8Monday, April 8, 2013
  9. 9. Kiva Zip: reinventing small biz borrowing9Monday, April 8, 2013
  10. 10. Kiva Zip: reinventing small biz borrowing10Monday, April 8, 2013
  11. 11. 1111Monday, April 8, 2013
  12. 12. 12Trust =Character +Competence12Monday, April 8, 2013
  13. 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. 14. 14How Kiva Zip works in practice:Victor’s Cafeto CoffeeshopKiva Zip Story14Monday, April 8, 2013
  15. 15. Victor, Cafeto and a 0%, $5,000 loan15Monday, April 8, 2013
  16. 16. Victor’s ‘trustee’, MEDA16Monday, April 8, 2013
  17. 17. MEDA ‘endorsed’ Victor17Monday, April 8, 2013
  18. 18. Victor’s‘crowd’ oflenders18Monday, April 8, 2013
  19. 19. Lendersexpressingsupport,and evenbecomingcustomers19Monday, April 8, 2013
  20. 20. Victorupdatinghislenders20Monday, April 8, 2013
  21. 21. Victor is now 100% repaid…21Monday, April 8, 2013
  22. 22. …And he’s applying for a second, larger loanfor his 2nd coffee shop 1 year later!22Monday, April 8, 2013
  23. 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. 24. Victor then endorsed his friend Rocio for a loan24Monday, April 8, 2013
  25. 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. 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. 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. 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. 29. Other resources:Press, About Kiva, Kiva Zip borrower video2929Monday, April 8, 2013
  30. 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. 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. 32. http://www.kiva.org/liveWatch all loans as they happen live online!32Monday, April 8, 2013

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