kiva zip: crowdfunding small business in brooklyn ny
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Bringing Kiva Zip loans to low-income and financially excluded small businesses
in Brooklyn
Briefing to Brooklyn Chamber of Commerce
April 20131Monday, April 8, 2013
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972,016 entrepreneurs funded since 2005
1.3mil registered lenders
In 2012 alone, US$150 mil crowd-funded loans
US$1mil every 2.5 days!
First, a little bit about Kiva.org
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#10% interest loan product funded
entirely via online crowdfunding
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#2Small starter loans up to $5,000 designed for low
income and/or financially excluded entrepreneurs
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Or ... #3“Getting ordinary folks to fund
loans to those small businesses traditional lending
cannot reach.”
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Completely new model of microlending specifically addressing needs of US micro-entrepreneurs
Kiva Zip loans offer small biz 0% interest substitute to funding your working capital using credit cards
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Kiva Zip: reinventing small biz borrowing
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Kiva Zip: reinventing small biz borrowing
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Kiva Zip: reinventing small biz borrowing
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Kiva Zip: reinventing small biz borrowing
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Trust =
Character + Competence
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Kiva Zip “Trustees” and why they matter
In the Kiva Zip model of character-based lending, “Trustees” - organizations or individuals that work closely with small entrepreneurs - are absolutely crucial.
Trustees are those entrusted to recommend the most trustworthy small businesses for crowds to lend to:-
Identify eligible and deserving borrowers for 0% interest loan
Publicly endorse them on the Kiva Zip website
Support the borrower in their business (advice, mentorship, incubator space, networking)
Trustees have no financial risk if a borrower they endorse does not repay, but their reputation is tied to borrowers’ performance.
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How Kiva Zip works in practice:
Victor’s Cafeto CoffeeshopKiva Zip Story
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Victor, Cafeto and a 0%, $5,000 loan
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Victor’s ‘trustee’, MEDA
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MEDA ‘endorsed’ Victor
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Victor’s ‘crowd’ of lenders
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Lenders expressing support, and even becoming customers
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Victor updating his lenders
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Victor is now 100% repaid…
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…And he’s applying for a second, larger loanfor his 2nd coffee shop 1 year later!
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…And he’s applying for a second, larger loanfor his 2nd coffee shop 1 year later!
The best metric of all:Victor’s 2 new coffeeshops
created 7 new jobs that didn’t exist 13 months ago exist
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Victor then endorsed his friend Rocio for a loan
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What’s in it for trustees?
Empower Clients
If you already work with financially excluded clients (unproven startups, or low credit score entrepreneurs)...
Kiva Zip will give the clients you endorse access to 0% business loans they would otherwise not qualify for
Promote what you
do
If you already do great work in your community that largely goes unrecognized or unpromoted...
being a Kiva Zip trustee automatically allows you to promote your work (in your own words) to >1 mil socially-conscious Kiva lenders everywhere. Also participate in Kiva PR initiatives.
Increase Impact,
Help Fundraise
If your organization’s potential funders care about tangible impact (businesses helped, $$ generated, jobs created)...
Kiva Zip helps you help more small businesses take off, faster. Endorsing a deserving borrower online takes 15min. Reducing time and cost for raising capital means you can impact more.
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Examples of Organizations partnering Kiva Zip as trustees
SEEDSPOTIncubator, AZ
GREENHORNSnonprofit, small farm-innovation
SYRACUSE UNIVERSITY Institute for Veterans & Military Families
TEAM ETSY LITTLE ROCKCommunity Center for African American Business
St Louis, MO
Oakland City Church (Pastor Josh McPaul)
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Trustees we’re partnering now in Brooklyn
CAMBA,Community Grassroots
& CDFI Flatbush
BOC Netnonprofit & CDFI - social and economic justice
RHONDA Schaller (individual)Artist, Writer, Educator at Pratt
Design Institute
TEAM ETSY New YorkCommunity of Etsy Sellers
Kiva needs BCOC’s help to connect/refer more grassroot organizations working with
excluded communities in BK - churches, communuty
outreach centers, education, immigrant communities, female empowerment
Recent BK-based Start-Uprecently funded via Kiva Zip in March 2013, wants to pay
it forward.
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Brooklyn Chamber of Commerce+ Local grass root orgs as trustees/recommenders
+ Kiva’s 1mil socially conscious lenders
Together: we can get work together to
finance good businesses commercial lending cannot reach
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Other resources: Press, About Kiva, Kiva Zip borrower video
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Kiva Zip: Some recent press stories
✴Bill Clinton Launches Kiva Zip in Little Rock, AK http://www.opednews.com/articles/President-Bill-Clinton-Att-by-Michael-McCray-130320-618.html
✴Bill Clinton calls Kiva Zip a “very big deal” for small business http://techcrunch.com/2013/03/22/kiva-piloting-microlending-for-u-s-small-biz-clinton-says-its-a-very-big-deal/
✴Kiva funds one million entrepreneurs http://www.marketwire.com/press-release/kiva-touches-one-million-lives-worldwide-with-crowdfunded-loans-1768754.htm
✴Huffington Post articles on Kiva Zip http://www.huffingtonpost.com/kiva-zip/
✴Creating Jobs for Native Americans with Kiva Zip http://www.huffingtonpost.com/kiva-zip/
✴Kiva Zip and Character based lending http://www.fastcoexist.com/1679137/kiva-s-secret-project-to-let-you-give-peer-to-peer-loans
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And finally....If I haven’t run out of time -
Video: “Crowdfunding Small Business in Brooklyn, NY - 1 small loan at a time http://youtu.be/LZRp7CmPpi0
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http://www.kiva.org/live
Watch all loans as they happen live online!
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