SVMN October 2007 meeting - eBay Microplace (Karl Willey)

Introduction Silicon Valley Microfinance Network November 2007

Market Research Shows Strong Demand “ Save the World Enthusiasts”

“ Web 2.0” segment

Young, idealistic, educated

Often with ethnic heritage

Energized by global impact

New to investing

“ Socially-Conscious Affluents”

“ Whole Foods shoppers”

Affluent professionals

Well-read & traveled

Want to match lifestyles with values

The “Oprah” segment

Older, female skew

Heavy online researchers

Socially active, but tend to focus more domestically

“ Soccer Moms & Dads” MicroPlace’s market research has revealed three key target segments:

Extensive quantitative research tested demand for MicroPlace offering at different interest rates and maturities

Interested users from our top 3 target segments represent 30% of the online population

They expressed interest in investing more than $22 billion

Market potential even greater at higher interest rates and shorter maturities

Source: MicroPlace quantitative research study, December 2006

Microfinance Industry Needs Capital Source: “Tapping Financial Markets for Microfinance” Grameen Bank USA Paper, 2005, Jennifer Meehan Figures are in Billions

Tremendous success to date. . .

Over 100 million borrowers

Over $7 billion of outstanding capital

97% historic repayment rates

But global demand for microfinance far exceeds the current supply of capital

Up to $300 billion needed

Private capital will have to close the gap – donation capital will not be sufficient

Microfinance Institutions (MFIs): “The Last Mile” There are approximately 10,000 microfinance lending institutions in all corners of the globe. They need capital to build their portfolios and their long-term sustainability

Community Investing Growth

At the same time, demand for socially responsible investment opportunities is on the rise

Community investing growth has taken off

But, despite the commercial viability of microfinance, there are few investment vehicles available for the everyday retail investor

And none have been available online, with the backing of a mass consumer marketing engine

Until now . . .

MicroPlace Mission To alleviate global poverty by enabling everyday people to make investments in the world’s working poor

Retail Investors

Lots of capital available for investment

Looking for new community investment options

Microfinance has high appeal, low awareness

Microfinance

Funds/MFIs

Proven poverty alleviation tool

Need for billions of dollars of loan capital

Self-sustaining industry with the ability to provide investment returns

MicroPlace: Connects everyday retail investors with microfinance institutions in need of capital Investments Repayment $ $ Investments Repayment $ $

How It Works MicroPlace is an investment website that raises capital for microfinance institutions and funds through the sale of securities to U.S. retail investors Individual Investors Security Issuers $250 $250 $300 $500 $500,000 $1,000,000 MFIs $500,000 $1,000,000

Purchase securities

Direct investment to MFI of choice

Receive interest and principal from security issuers

Registered broker

Mass-markets to investors

Assists with investor management

Create & register securities

Select / vet MFIs

Use funds to support MFI loans

Pay interest and principal to investors

Borrow funds from issuers

Use funds to make more microloans

Pay principal and interest to issuers

(Examples for illustration)

Example Investment MFI Info Security Issuer Key Terms Borrowers Investors purchase a Calvert Community Investment Note, and target their investment to a specific microfinance institution – in this case, TPC in Cambodia

Site Overview Invest 1 Learn 2 Manage 3

Benefits From eBay’s Mass Marketing Strength Mass Marketing Strength/Expertise Marketing Plans