4. 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.”
5. 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
6. A Look At Microfinance
Estimated Number of Borrowers In Need
Estimated Number of Borrowers Reached
In Millions
7. A Look At Microfinance
80% of Global
Demand Not Met
Estimated Number of Borrowers In Need
Estimated Number of Borrowers Reached
In Millions
10. 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
11. Kiva Model
EntrepreneurLender
I can loan to
entrepreneurs in the
developing world!
Microfinance Institution
(MFI)
Online Platform
Low interest loans
Transparency
13. map our filed partners
Kiva’s Field Partners (MFI’s)
Text
14. 1
80+ MFIs from 40+ countries
Map of our Field Partners
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
map our filed partners
Kiva’s Field Partners (MFI’s)
Text
15. Kiva Tries to Make the Experience Addictive
“Addictive” = Easy + Fun
16. 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
17. 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…
18. 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…
21. 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”)
22. Kiva by the Numbers
Time since launch: 30 months
Loans: $32 million, growing $1 million every 10 days
Lenders: 270K people from +70 countries
Borrowers: 40K entrepreneurs from +40 countries
MFI Partners: 100 MFIs, growing at 3 a month
Traffic: +100K visitors / week
Activity: Loan made every 37 seconds
Risk: 97% active loans on time / 1% default rate
Org Size: 30 employees / +400 volunteers
Leverage: Platform raises $8 for every $1 in expenses.
Goal: $1 Billion from 10M lenders in 5 years.
24. Kiva in the Press
-
-
-
-
“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."
26. Supporters
Early 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
27. 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)
28.
29.
30. How Much of an Impact You Can Make
How you can help:
A direct donation to Kiva.org makes a big impact
Leverage
Ratio X
Livelihood
Impact
Multiplier
Recycled
Funds
Effect
X =
Your
donation’s
total
impact
10 to 1
For every dollar
spent on operating
Kiva, over $10 has
been raised from
our internet user
base
5 to 1
For every loan
made, 5 - 10
additional lives
are improved.
1.8 to 1
For every repaid
loan, early data
shows an +80%
re-loan rate.
How much you can help: a direct donation
31. 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
