Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

SVMN October 2007 meeting - eBay Microplace (Karl Willey)


Published on

Microfinance presentation on eBay Microplace; for Silicon Valley Microfinance Network ( by Karl Willey

Published in: Economy & Finance, Business
  • Be the first to comment

SVMN October 2007 meeting - eBay Microplace (Karl Willey)

  1. Introduction Silicon Valley Microfinance Network November 2007
  2. Market Research Shows Strong Demand “ Save the World Enthusiasts” <ul><li>“ Web 2.0” segment </li></ul><ul><li>Young, idealistic, educated </li></ul><ul><li>Often with ethnic heritage </li></ul><ul><li>Energized by global impact </li></ul><ul><li>New to investing </li></ul>“ Socially-Conscious Affluents” <ul><li>“ Whole Foods shoppers” </li></ul><ul><li>Affluent professionals </li></ul><ul><li>Well-read & traveled </li></ul><ul><li>Want to match lifestyles with values </li></ul><ul><li>The “Oprah” segment </li></ul><ul><li>Older, female skew </li></ul><ul><li>Heavy online researchers </li></ul><ul><li>Socially active, but tend to focus more domestically </li></ul>“ Soccer Moms & Dads” MicroPlace’s market research has revealed three key target segments: <ul><li>Extensive quantitative research tested demand for MicroPlace offering at different interest rates and maturities </li></ul><ul><li>Interested users from our top 3 target segments represent 30% of the online population </li></ul><ul><li>They expressed interest in investing more than $22 billion </li></ul><ul><li>Market potential even greater at higher interest rates and shorter maturities </li></ul>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 <ul><li>Tremendous success to date. . . </li></ul><ul><ul><li>Over 100 million borrowers </li></ul></ul><ul><ul><li>Over $7 billion of outstanding capital </li></ul></ul><ul><ul><li>97% historic repayment rates </li></ul></ul><ul><li>But global demand for microfinance far exceeds the current supply of capital </li></ul><ul><li>Up to $300 billion needed </li></ul><ul><li>Private capital will have to close the gap – donation capital will not be sufficient </li></ul>
  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 <ul><li>At the same time, demand for socially responsible investment opportunities is on the rise </li></ul><ul><li>Community investing growth has taken off </li></ul><ul><li>But, despite the commercial viability of microfinance, there are few investment vehicles available for the everyday retail investor </li></ul><ul><li>And none have been available online, with the backing of a mass consumer marketing engine </li></ul><ul><li>Until now . . . </li></ul>
  6. MicroPlace Mission To alleviate global poverty by enabling everyday people to make investments in the world’s working poor <ul><li>Retail Investors </li></ul><ul><li>Lots of capital available for investment </li></ul><ul><li>Looking for new community investment options </li></ul><ul><li>Microfinance has high appeal, low awareness </li></ul><ul><li>Microfinance </li></ul><ul><li>Funds/MFIs </li></ul><ul><li>Proven poverty alleviation tool </li></ul><ul><li>Need for billions of dollars of loan capital </li></ul><ul><li>Self-sustaining industry with the ability to provide investment returns </li></ul>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 <ul><li>Purchase securities </li></ul><ul><li>Direct investment to MFI of choice </li></ul><ul><li>Receive interest and principal from security issuers </li></ul><ul><li>Registered broker </li></ul><ul><li>Mass-markets to investors </li></ul><ul><li>Assists with investor management </li></ul><ul><li>Create & register securities </li></ul><ul><li>Select / vet MFIs </li></ul><ul><li>Use funds to support MFI loans </li></ul><ul><li>Pay interest and principal to investors </li></ul><ul><li>Borrow funds from issuers </li></ul><ul><li>Use funds to make more microloans </li></ul><ul><li>Pay principal and interest to issuers </li></ul>(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 <ul><li>Public relations </li></ul><ul><li>Seasoned PR executives </li></ul><ul><li>Strong eBay press/media contact network </li></ul><ul><li>Online Advertising Expertise/Partnerships </li></ul><ul><li>Opportunities to advertise on eBay and PayPal, reaching millions of people </li></ul><ul><li>eBay is a huge internet advertiser </li></ul><ul><li>Viral (“buzz”) Marketing Resources </li></ul><ul><li>Thousands of employees eager to engage </li></ul><ul><li>Email Marketing Expertise </li></ul><ul><li>World-class campaign management technology </li></ul><ul><li>Print Marketing Experience </li></ul><ul><li>Opportunities for inclusion in eBay print media </li></ul><ul><li>PR </li></ul><ul><li>Broad consumer PR campaign to drive awareness of microfinance and MicroPlace </li></ul><ul><li>Online Marketing </li></ul><ul><li>Keyword advertising </li></ul><ul><li>Graphical advertising </li></ul><ul><li>Viral </li></ul><ul><li>Launch campaign to jumpstart site </li></ul><ul><li>Viral marketing functionality built into site </li></ul><ul><li>Email </li></ul><ul><li>Ongoing campaigns to existing investors </li></ul><ul><li>Print </li></ul><ul><li>Inclusion in eBay catalogs </li></ul>
  11. Tell a Friend! <ul><li>Spread the word about microfinance and MicroPlace by sending an e-card! </li></ul><ul><li>Free, easy, fun! </li></ul><ul><li>Choose from 6 designs </li></ul><ul><li>No registration required </li></ul><ul><li> </li></ul>