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Kushal Chakrabarti, Co-Founder and CEO of Vittana, delivers a keynote speech at SOCAP10

Kushal Chakrabarti, Co-Founder and CEO of Vittana, delivers a keynote speech at SOCAP10

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  • 1. Building a world where anyone can go to college Kushal Chakrabarti Co-Founder and CEO, Vittana http://twitter.com/kushalc kushalc@vittana.org Vittana/Africa: Bringing “10 Most Innovative voted by 1.7M readers as “#1 “next new thing in Student Loans to Africa Companies in Finance” game-changer in philanthropy” charity”
  • 2. Young organization with bit of success and a big vision Vittana/Africa: Bringing “10 Most Innovative voted by 1.7M readers Student Loans to Africa Companies in Finance” as “#1 game-changer in philanthropy” “a hotbed of “Superbien.” “next new thing in innovation” charity”
  • 3. Part 1: Building the Vittana ground model of education microcredit $20 mom as co-signer + $15 vocational school + specific loan structure $10 + = ... $5 + collaborative product $0 development (3-9 months) + 282% income change ground teams 97% repayment rate
  • 4. Part 2: Anyone with $25 can help a student finish school on vittana.org $400,000 Student Loan Portfolio at Vittana MFIs $300,000 $200,000 $100,000 May 2009 Aug 2009 Nov 2009 Feb 2010 May 2010 Aug 2010
  • 5. I want to take you on a journey...
  • 6. Three years ago...
  • 7. NYT: Father spending 30% of income on son’s education
  • 8. Took as challenge to learn as much about microcredit, education
  • 9. SSIR: “Reimagining Microfinance,” June 2008
  • 10. #1 cause of drop-outs in many emerging countries: Financial cost 70+% of drop-outs due to financial cost
  • 11. #1 increase in spending by 1st-time MF borrowers: Education 100% Increase in Spending by 1st-Time Borrowers 75% 50% 25% 0% Food Fuel Electricity Clothing Education Health
  • 12. Why  Not?
  • 13. $700 isn’t that much money in the grand scheme of things $700 ~ $27
  • 14. Catch-22: No track record => no investment => no track record Track Record Knowledge Investment
  • 15. “Last mile of education”: 282% average income change $20 $15 $10 $5 $0 282% average income change
  • 16. Mission: Jumpstart global ecosystem of education finance
  • 17. 1 person can’t invest $50M, but 1M people can invest $50.
  • 18. Vittana loan model getting better and better $20 mom as co-signer + $15 vocational school + specific loan structure $10 + = ... $5 + collaborative product $0 development + 282% income change ground teams 97% repayment rate
  • 19. 3 years ago: Just open up a marketplace $20 $15 $10 a Vittana marketplace for education funding ≠ $5 $0 282% income change 97% repayment rate
  • 20. 1 year ago: try to “teach” MFIs $20 mom as co-signer + $15 vocational school + specific loan structure $10 + ≠ ... $5 + shallow product support $0 282% income change 97% repayment rate
  • 21. Today: Work directly with MFIs for 3-9 months + first ground teams $20 mom as co-signer + $15 vocational school + specific loan structure $10 + = ... $5 + collaborative product $0 development (3-9 months) + 282% income change ground teams 97% repayment rate
  • 22. Holy grail: repayment probability of female, 20-25, Peru, nurse? segment expected repayment female Lima, Peru nursing 98.3% 20-25 age bracket <2 kids
  • 23. Demonstration effect: Jumpstart global ecosystem of education finance 1. What if you could rigorously demonstrate MFI- and investor-side financial viability? 2. What if you could causatively, statistically significantly demonstrate impact? 3. What happens then?
  • 24. How do you create meaning with money in education? Risk-tolerant, patient capital + Meaning A new idea = + + Possibility Heavy-duty ground program development
  • 25. First non-Vittana funder of education micro-loans — Kiva $400,000 Student Loan Portfolio at Vittana MFIs $300,000 $200,000 $100,000 May 2009 Aug 2009 Nov 2009 Feb 2010 May 2010 Aug 2010 Total Vittana
  • 26. Nardith needed $700 to attend nursing school mom in Norway MBA student in Boston banker in NYC Stanford alum in Las Vegas entrepreneur in Seattle ... and 14 others Nardith Torres Needed Nurse Peru $700 http://www.vittana.org/students/15
  • 27. Not just money, but completely changes reality of choice