SVMN October 2007 meeting - eBay Microplace (Karl Willey)

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

    1. Introduction Silicon Valley Microfinance Network November 2007
    2. 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
    3. 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
    4. 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
    5. 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 . . .
    6. 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 $ $
    7. 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)
    8. 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
    9. Site Overview Invest 1 Learn 2 Manage 3
    10. 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
    11. 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

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