Matt little rock


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  • -- First funder, our jobs! Four letter word that almost rhymes with KIVA
    -- logo, guitar, trademark
    -- Café to café in the Mission. Anyone been to the mission?
  • -- change in the dollar is reducing that number.
  • Matt little rock

    1. 1. Little Rock! October 2009
    2. 2. My first cross-cultural experience
    3. 3. Entrepreneurship in Africa
    4. 4. Our first borrower
    5. 5. Starting a social business in America Kiva Office #1 Kiva Office #2 Kiva Office #3
    6. 6. The naysayers said… That can’t scale! That’s illegal! That’s not charity! (but that’s not a real business either!) Just go to a big Wall St Bank!
    7. 7. And then came the press "Revolutionizing how donors and lenders in the US are connecting with small entrepreneurs in developing countries”
    8. 8. What we learned about Microfinance….  Half the world lives on <$2/day  Most working poor run small businesses  Microfinance products and services key elements to economic self-sufficiency Microcredit loans help many entrepreneurial, poor individuals lift themselves out of poverty
    9. 9. Borrowers(millions) Est. # of borrowers in need Est. # of borrowers reached 80% of the demand is still not met… 500M 100M There is a huge demand for credit
    10. 10. Why women are important • Higher repayment rates • Higher social impact • Higher rate of funding on the Kiva site 10
    11. 11. Internet Lender Online marketplace Local Partner (MFI) Entrepreneur Money Information How Kiva works
    12. 12. Meet our lenders
    13. 13. Are you here today, Laura?
    14. 14. The Lending Team from Arkansas
    15. 15. 15 Expanding to over 50 countries Mexico Guatemala Honduras Nicaragua Haiti Dominican Republic Samoa Ecuador Peru Bolivia Paraguay Senegal Sierra Leone Cote d’Ivoire Ghana Togo Nigeria Cameroon DRC Mozambique Tanzania Kenya Uganda South Sudan Indonesia Vietnam Cambodia NepalPakistan Afghanistan Tajikistan Lebanon Gaza Iraq Azerbaijan Ukraine MoldovaBosnia Bulgaria
    16. 16. Water tap in Uganda
    17. 17. Goats in Kenya
    18. 18. Butcher in Afghanistan
    19. 19. Identity Protected in Iraq
    20. 20. 20 Cockfighting in Peru? Sara Elva Vasquez Rodriquez runs a cockfighting business in the rural jungle town of Jepelacio, San Martin. Cockfighting is a passion for people all over Peru, including major urban areas. They hold fights every Saturday night in a coliseum they built into the back of their home. They charge an entrance fee, handle the bets, and sell food and drink while the packed house bets and cheers on their favorite competitors.
    21. 21. 21 Hunting in Azerbajain? Kamran is a member of the Hunter Society. He has a hunting dog. This clever dog helps him to hunt. In the beginning of his business he did not have a dog and it was a big problem for him. One day he decided to borrow $400 and bought the hunting dog. Now he needs a loan of $1000 to buy a fowling-piece, which is a light shotgun for shooting birds and small animals.
    22. 22. 22 Is he really a hunter? After meeting with Karman, seeing his rifle, hunting license, pictures, and simply speaking with him, I was convinced that he was in fact a hunter and that the lender can be rest assured that the funding raised for Karman was used for Karman’s business as a professional hunter.
    23. 23. We involved lots of people Kiva Fellows Summer ‘90
    24. 24. We even involved engineers….
    25. 25. We saw that lenders were so generous….
    26. 26. The Kiva Revenue Model Operational Revenue = Optional donations on the website + Interest income (float) + Gift certificate breakage
    27. 27. Kiva is 80% self - sufficient 27
    28. 28. And then came the financial crisis… Remittances decreased Exports softened Lenders contracted
    29. 29. A remarkable counterexample emerged….
    30. 30. The future of the Kiva product
    31. 31. REALIZEREALIZERAISERAISE REACHREACH • $95M • 550K lenders • 225K entrepreneurs • 125 MFIs 75% operational self-sufficiency Where are we today? $1B in cumulative loans via 3m lenders Realize break- even Reach 2M entrepreneurs via +250 MFIs Where are we going? 5-Year goals and objectives
    32. 32. Financial supply chain intimacy
    33. 33. Imagine one day… • Borrowers become lenders • Direct lending to via mobile phones • Researchers use Kiva as a rich data source • MFIs use Kiva as their accounting software • Entrepreneurs use Kiva as a credit score • Kiva connects millions of people across the planet who all work for a living… Result: 7,245,763 loans found
    34. 34. Taking philanthropy out of the reservation
    35. 35. Thank you