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Kiva Zip 2015 review


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Kiva Zip is a non-profit that makes 0% interest loans to small business owners throughout the United States. 2015 was a great year for our program -- here's why...

Kiva Zip 2015 review

  1. 1. 2015 annual review Althea, Gilliard Farms Brunswick, GA
  2. 2. $0k $250k 1974 2014 Household Income $129k $207k $20k $21k Top 5% of households +61% Bottom 20% +7% 2014 dollars; Source: -$50k $750k Bottom quintile Second quintile Third quintile Fourth quintile Top quintile Household Net Worth 2000 2011 -566% -49% -7% +10% +11% 2011 dollars; Source: Income and Wealth Inequality are on the rise in America.
  3. 3. $0k $250k 1974 2014 Household Income $129k $207k $20k $21k Top 5% of households +61% Bottom 20% +7% 2014 dollars; Source: -$50k $750k Bottom quintile Second quintile Third quintile Fourth quintile Top quintile Household Net Worth 2000 2011 -566% -49% -7% +10% +11% 2011 dollars; Source: Income and Wealth Inequality are on the rise in America.
  4. 4. And we believe Small Businesses can reverse this trend. “That's the beauty of entrepreneurship: If a new company is formed, it hires people and creates jobs in its community. As it grows, people’s opportunities multiply and wages rise. Inequality diminishes because people get pulled into good jobs. Today, two-thirds of new net jobs in the U.S. are being created by new firms that are less than five years old. If you want to ease income inequality, what you want are more new firms starting up and seeking employees.” Andrew Yang, CEO Venture for America Marc, SF Laser Oakland, CA
  5. 5. 6% 8% 10% 12% 14% 16% 1978 1988 1998 2008 But Small Businesses & Entrepreneurship are under threat. Over the last few years, firm exit rate has exceeded firm entry rate for the first time in decades. Firm exit rate Firm entry rate U.S. firm entry and exit rate by year Source: U.S. Census Bureau; The Washington Post
  6. 6. 0.5 1.0 1.5 2000 2005 2010 Because it’s increasingly hard for them to Access Capital. Large business loans, +36% Change in the Volume of Small Business Loans Source: Institute for Local Self-Reliance; Federal Reserve Data. Small business loans are less than $1M; Micro business loans are less than $100K Small business loans, -14% Micro business loans, -33%
  7. 7. That’s where Kiva Zip comes in! Esteban and Carolina, NoDá Design Studio Brooklyn, NY
  8. 8. In 2015, Adolis borrowed $10,000 from 99 lenders to buy a new baking oven and refrigerator, and open her café Lovely Rita in Manhattan. “I would like to thank all of you very much! Family, friends and strangers who supported me by funding my loan, but also thank you for your amazingly warm wishes and encouragement! I consider this a very big contribution to my success!” Adolis, Lovely Rita Manhattan, NY
  9. 9. In 2015, Amine borrowed $8,250 from 107 lenders to invest in new equipment and marketing materials for his restaurant in San Francisco’s Tenderloin district. “Thank you guys for your support. If you get the chance, please come check out my restaurant. It would be great to meet you.” Amine, Soul Food City San Francisco, CA
  10. 10. In 2015, Bryce borrowed $10,000 from 145 lenders to expand his certified organic greenhouse and install a renewable fuel heating system on his family farm. “Best wishes on the growth and development of the farm”, Kenneth, Lender, Morrisville, NC Bryce, Lazy Eight Stock Farm Paint Lick, KY
  11. 11. In 2015, 39,014 people crowdfunded $4,715,325 of loans to 811 U.S. small business owners looking to make a positive impact in their communities. Amy, Building Hugger Detroit, MI
  12. 12. We were proud of our growth rate in 2015… $0.0M $0.4M $1.6M $2.7M $4.7M $8.6M $0M $3M $6M $9M 2011 2012 2013 2014 2015 2016 target Kiva Zip fully funded loan volume by year 87 356 578 811 1,5006 loans made +351% +67% +73%
  13. 13. …And proud of a few other rates too. 90% funding success rate 89% Loan repay- ment rate 0% interest rate Martha, Words on Woodcuts Press Philadelphia, PA
  14. 14. We continued to iterate on our “Social Underwriting”… Antisocial underwriting Social underwriting Lending decisions are made based on financial data – the strength of a borrower’s credit score, collateral and cashflows. Lending decisions are made based on social data – the strength of a borrower’s character, or their standing in their community. Loans (and underwriting decisions) are made for the purpose of minimizing risk and maximizing profit. Loans (and underwriting decisions) are made for the purpose of having a positive social impact. Lending decisions are autocratically made by a single, centralized, objective and inflexible algorithm. Lending decisions are democratically made by a crowd of millions of people – each with their own subjective interests, passions and reasons for lending.
  15. 15. …which allowed us expand economic opportunities for all. Caucasian African American Hispanic Asian Biracial Pacific Islander Kiva Zip 2015 loans by ethnicity More than half of our loans went to ethnic minorities in 2015, and more than half went to women small business owners… …This compares to 36% and 15%, respectively, for traditional retail bank loans. Source: Kiva Zip data, PayPal Working Capital study
  16. 16. We launched Kiva City Milwaukee in February… Mayor Tom Barrett launches Kiva City Milwaukee at Milwaukee City Hall George Mosher William G. and Christie A. Krugler
  17. 17. …Kiva City San Francisco in October… Kiva President Premal Shah and Kiva Zip borrower Anna Tvelova launch Kiva City San Francisco inside SF City Hall
  18. 18. …Kiva City New York in December… Bill Clinton launches Kiva City New York in December 2015
  19. 19. …and got some great press coverage as a result.
  20. 20. Our impact is made possible by our Trustee partners… 1) NYC Small Business Solutions Centers, New York, NY 2) Tenderloin Economic Development Project, San Francisco, CA 3) The Wisconsin Women’s Business Initiative Corporation, Milwaukee, WI 4) Union Kitchen, Washington, DC 5) The City of Oakland, Oakland, CA 6) Institute for Veterans and Military Families, Syracuse, NY 7) Mission Economic Development Agency, San Francisco, CA 8) Northern Virginia Family Service, Falls Church, VA 9) Build Institute, Detroit, MI 10) Centro Community Partners, Oakland, CA Mission Economic Development Agency, San Francisco, CA We couldn’t fit all 700 on one slide, but here are the Top 10:
  21. 21. …by our wonderful team, many of whom are volunteers…
  22. 22. …and by our lenders, whose generosity inspire us every day.
  23. 23. To everyone in the Kiva Zip community, thank you for making 2015 such a wonderful year. We hope we’ll see you again in 2016! Scott, Fox Farm Riverside, CA Learn more Make a $25 loan today Want to support a small business on Kiva Zip? Interested in becoming a Kiva Zip borrower?