matt little rock

Kiva.org

Little Rock!

October 2009

My first cross-cultural experience

Entrepreneurship in Africa

Our first borrower

Starting a social business in America

Kiva Office #1

Kiva Office #2

Kiva Office #3

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!

And then came the press

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

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

Bo

rro

we

rs

(mil

lio

ns

)

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

Why women are important

• Higher repayment rates

• Higher social impact

• Higher rate of funding on the Kiva site

10

InternetLender

Online marketplaceLocal Partner

(MFI)Entrepreneur

Money

Information

How Kiva works

Meet our lenders

Are you here today, Laura?

The Lending Team from Arkansas

15

Expanding to over 50 countries

Mexico

GuatemalaHondurasNicaragua

HaitiDominican

Republic

SamoaEcuador

Peru

BoliviaParaguay

Senegal

Sierra Leone Cote

d’Ivoire

Ghana

Togo

Nigeria

Cameroon

DRC

Mozambique

Tanzania

KenyaUganda

South Sudan

Indonesia

VietnamCambodia

NepalPakistan

Afghanistan

Tajikistan

LebanonGaza Iraq

Azerbaijan

Ukraine

MoldovaBosnia

Bulgaria

Water tap in Uganda

Goats in Kenya

Butcher in Afghanistan

Identity Protected in Iraq

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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

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

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.

We involved lots of people

Kiva Fellows Summer ‘90

We even involved engineers….

We saw that lenders were so generous….

The Kiva Revenue Model

Operational Revenue =

Optional donations on the website

+ Interest income (float)

+ Gift certificate breakage

Kiva is 80% self - sufficient

27

And then came the financial crisis…

Remittances decreased

Exports softened

Lenders contracted

A remarkable counterexample emerged….

The future of the Kiva product

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

Financial supply chain intimacy

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

Taking philanthropy out of the reservation

Thank you