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SVMN October 2007 meeting - eBay Microplace (Karl Willey)

SVMN October 2007 meeting - eBay Microplace (Karl Willey)



Microfinance presentation on eBay Microplace; for Silicon Valley Microfinance Network (SVMN.net) by Karl Willey

Microfinance presentation on eBay Microplace; for Silicon Valley Microfinance Network (SVMN.net) by Karl Willey



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SVMN October 2007 meeting - eBay Microplace (Karl Willey) SVMN October 2007 meeting - eBay Microplace (Karl Willey) Presentation Transcript

  • 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
    • Public relations
    • Seasoned PR executives
    • Strong eBay press/media contact network
    • Online Advertising Expertise/Partnerships
    • Opportunities to advertise on eBay and PayPal, reaching millions of people
    • eBay is a huge internet advertiser
    • Viral (“buzz”) Marketing Resources
    • Thousands of employees eager to engage
    • Email Marketing Expertise
    • World-class campaign management technology
    • Print Marketing Experience
    • Opportunities for inclusion in eBay print media
    • PR
    • Broad consumer PR campaign to drive awareness of microfinance and MicroPlace
    • Online Marketing
    • Keyword advertising
    • Graphical advertising
    • Viral
    • Launch campaign to jumpstart site
    • Viral marketing functionality built into site
    • Email
    • Ongoing campaigns to existing investors
    • Print
    • Inclusion in eBay catalogs
  • Tell a Friend!
    • Spread the word about microfinance and MicroPlace by sending an e-card!
    • Free, easy, fun!
    • Choose from 6 designs
    • No registration required
    • www.microplace.com/ecards