YJA Conference

July 2008

Parth Shah

Intern

Kiva.org“Direct and straightforward lending to individuals in developing countries is here...

You don't have to be a Bill Gates to drastically change people's lives anymore.”

What is the Field of Microfinance?

• Most of global poor run small businesses

• In order for these small businesses to succeed owners need a small amount (micro-) of capital (-finance)

• Microfinance loans have a 95%+ repayment rate and is a proven method of enabling the poor to lift themselves out of poverty

I know how to what I do:

I just need capital to lift

myself out of poverty

A Look At Microfinance

Estimated Number of Borrowers In NeedEstimated Number of Borrowers Reached

In Millions

A Look At Microfinance

80% of Global

Demand Not Met

Estimated Number of Borrowers In NeedEstimated Number of Borrowers Reached

In Millions

Kiva Story

Kiva Story

How?

What is Kiva?

• Kiva’s Mission: To alleviate poverty by allowing people to LEND to entrepreneurs in the developing world

• Kiva executes through an online platform which allows everyday users to

make LOANS to entrepreneurs in the developing world

Kiva Model

EntrepreneurLender

I can loan to

entrepreneurs in the

developing world!

Microfinance Institution

(MFI)Online Platform

Low interest loans

Transparency

map our filed partners

Text

map our filed partners

Kiva’s Field Partners (MFI’s)

Text

1

80+ MFIs from 40+ countries

Map of our Field Partners

Mexico

GuatemalaHonduras

Nicaragua

HaitiDominican

Republic

SamoaEcuador

Peru

BoliviaParaguay

Senegal

Sierra

Leone Cote

d’Ivoire

Ghana

Togo

Nigeria

Cameroon

DRC

Mozambique

Tanzania

KenyaUganda

South Sudan

Indonesia

Vietnam

Cambodia

NepalPakistan

Afghanistan

Tajikistan

Lebanon

Gaza Iraq

Azerbaijan

Ukraine

MoldovaBosnia

Bulgaria

map our filed partners

Kiva’s Field Partners (MFI’s)

Text

Kiva Tries to Make the Experience Addictive

“Addictive” = Easy + Fun

Kiva Makes it Easy

“I can see the

person I’m

lending to…”

Low cost to

entry

Quick and

easy

checkout

Business relationship based

on mutual dignity, not pity

Kiva Makes it Fun

Loans are fully

funded in hours

(MFI staff love

this)…

Transactions

happen every

37 seconds…

Randomized “1

minute of fame

“ for Lenders…

‘Popular’

entrepreneurs

rapidly rise to

the top…

Real time un-

edited

progress

updates from

around the

world…

My Profile

“My Page”

encourages self

expression,

evangelism and

loyalty…

“My Portfolio” concept

encourages further lending, risk

diversification and inter-lender

competition…

Results: +270,000

lenders from +70

countries in 2.5

years…

Kiva’s Transparency

Results:

3%

delinquency

rate.

3% refund

rate.

<1% default

rate.

TBD

inaccuracy

rate

Kiva Inaction

http://www.kiva.org/

Kiva’s Advantages (Lender’s Perspective)

• Transparent- (“THIS IS A REAL PERSON”)

• It’s A Loan- (“This is not a donation and I eventually get my money back”)

• Affordable- (“I only need $25 to change one’s life”)

Kiva by the Numbers

Time since launch: 30 monthsLoans: $32 million, growing $1 million every 10 daysLenders: 270K people from +70 countriesBorrowers: 40K entrepreneurs from +40 countriesMFI Partners: 100 MFIs, growing at 3 a monthTraffic: +100K visitors / weekActivity: Loan made every 37 secondsRisk: 97% active loans on time / 1% default rateOrg Size: 30 employees / +400 volunteers Leverage: Platform raises $8 for every $1 in expenses.Goal: $1 Billion from 10M lenders in 5 years.

Kiva in the Press

Kiva in the Press

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-

-

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“Making microfinance easier...Kiva’s website is easy to use, even for local Cambodian staff who haven’t used computers that long”

"Revolutionizing how donors and lenders in the US are connecting with small entrepreneurs in developing countries”

"Smaller investors can also make loans of as little as $25 to specific individual entrepreneurs through Kiva."

"If you've got 25 bucks, a PC and a PayPal account, you've now got the wherewithal to be an international financier."

Supporters

early RESULTS: STRONG BASE

2006

SupportersEarly Results:

Strong base of early supporters

Free payment processing

and employee support

120 Million free

banner impressions

Free Google

Adwords – 25% of

traffic

Free Yahoo Search

Marketing and

employee support

Free promotion

(Community Impact

Award)

Funding for Field

Research and

Development

Free phones for cell

based data upload

pilot

Free promotion of

Kiva widget to

bloggers

Early FunderEarly FunderFeatured

Organization

Free computers and

early funder

early RESULTS: STRONG BASE

2006

How You Can Help

• Make a $25 loan

• Give a $25 gift certificate

• Be a Kiva Fellow (if 21 or older)

• Volunteer as a Translator or Editor

• Spread the Word (email footer, add Kiva to your blog, join Facebook cause)

• Start a Lending Team (launching in august)

How Much of an Impact You Can Make

How you can help:

A direct donation to Kiva.org makes a big impact

LeverageRatio X

LivelihoodImpact

Multiplier

RecycledFundsEffect

X =

Yourdonation’s

totalimpact

10 to 1

For every dollarspent on operatingKiva, over $10 hasbeen raised fromour internet userbase

5 to 1

For every loanmade, 5 - 10additional livesare improved.

1.8 to 1

For every repaidloan, early datashows an +80%re-loan rate.

How much you can help: a direct donation

Activity

• Goal - to find the entrepreneur that will repay the quickest when given a loan of $100. ( In other words find the entrepreneur that your group feels you think has the best chances of being successful )

• Get a packet with 10 entrepreneurs - each person gets one entrepreneur page

• Each member should take a few minutes to read over their entrepreneur and then present to their group details about their specific entrepreneur

• As a group, through discussion, please select one entrepreneur to fund your $100 too. Some factors that you should consider include: location of the entrepreneur, description of entrepreneur, primary activity, business type, loan use, loan amount, the rating of the MFI that is administering the loan, etc.

• Each group will pick one representative to represent the group’s decision and EXPLAIN WHY they choose that

entrepreneur along with THREE FACTORS that played an important role in the group’s decision

Activity Results

• Doris Adamtey - 9 months

• Thi Dung Man - 6 months

• Aap Akib - 12 months

• Najwa Shaya - 6 months

• Dr Hakeem Bakunda - 12 months

• Nariman Karimov - 14 months

• Betty Ndagire - 6 months

• Vidal Amador - 4 months

• Sadeqa Bismullah - 8 months

• Genadiy Kovalenko - 8 months

Video

http://www.pbs.org/frontlineworld/stories/uganda601/

video_index.html