Misha Gideon Nicky Loek

120 interviews

Enabling immigrants access to credit through global credit data integration

This week:5

Total:88

InterviewsKey hypotheses

From B2C to B2B

From everyone to FCUs

From buying credit reports to credit analytics

From lender to CRA

No lending license, become a CRA

40+

60+

60+

10

5

Pivots # interviews

Customers can’t access credit products

Lenders need international data

They will be willing to pay $100+

Nova can access this data at a CPA of less than $50

Nova is legal

Hypotheses tested

Pass

Pass

Pass

In progress

Pass

Pass/fail

This week:5

Total:88Credit without borders

InterviewsKey stats

$220Bn

market

60% appro

val rate

$1,000+

CLTV to

Lender

$100 ARPU

50% Gross Margi

n

$20 Av. cost per

report

$10/$120

b2B/b2C CPA

3% default rate

3 pilots [NEW]

$200 CLTV

to Nova

This week:5

Total:88Credit without borders

InterviewsNova--Value Proposition

This week:5

Total:88

InterviewsNova has evolved

Esoteric asset

financing crowdfunding

Student Credit Lines @ Student Loan Rates

International Student Credit Cards

Student Lending

Solution for Corporate Sponsors

Foreign Professional

LeadGen

International Credit Data Aggregator for

B2B

Startup Garage (Fall ‘15) Lean Launchpad (Winter ‘16)

Where we started

Scrape international data

This week:5

Total:88

InterviewsOriginal BMCKey Activities

Key Partners

Value Props

Customer Relationships

Channels

Customer Segments

Revenue Streams

Connect and map to FICO

Local banks will be willing to partner

International banks will be willing to partner

Borrowers access more/cheaper productsCUs underwrite better, faster, cheaper

Nova provides new and valuable data to CRAsEducation to immigrants on USA system

Existing GSB relationships

Non-GSB customer relationships

Leads from FCUs

Non-immigrant workers

Lenders

Immigrants

Receive $100 per B2B underwrite decision

International CRAs will be willing to partner

Old VP: Enabling immigrants to access capital in the US and realize their potential

Data marketing at immigrants

Holding customer hand to export international data

This week:5

Total:88

InterviewsBusiness Model CanvasKey Activities

Key Partners

Value Props

Customer Relationships

Channels

Customer Segments

Revenue Streams

Connect global CRAs together

Credit unions underwrite immigrants

Secure lending license asap!

More/cheaper productsCUs underwrite better, faster, cheaper

CRAs a data provider not a customer (yet!)Education to immigrants on USA system

National Organization of Credit Unions

GSB connections for mentors and advisors

A tonne of bottom up research!!

CUs bring us leads

H-class immigrants

Direct marketing a second order priority

Lenders

Workers in home country

Receive $100 per B2B underwrite decision

Customer approval avoids need for CRA integration

80% NEW BMC

InterviewsMVP

InterviewsMVP

FULL CREDIT PASSPORTCORE CREDIT PASSPORT

Immigrants feel like “second class citizens”● Secured cards● Exorbitant rates with tiny credit limits● Rejection● Resort to taking loans from family or

local immigrant diaspora

This week:5

Total:88

InterviewsStory 1: Second-class citizensValidated in 40+ interviews

This week:5

Total:88

InterviewsCustomer relationships and segments

Selling to all lenders

Targeting Aussies in Silicon Valley

Credit Unions with a high immigrant base

H-1B visas from India and China

What we thought What we learned

Customer relationships

Customer segments

BMC

InterviewsThis week:

5 Total:

88Credit without borders● Absence of credit

options● Distrusting of

products, want to have a trusted brand name

● Value simplicity● Desire for growth

and serving their needs

Validated in 40+ interviews

This week:5

Total:88

Interviews

“The world is getting more

unequal and Nova credit has enormous

potential to help millions of people”

- Eric Schmidt

Our “big idea”

Lenders have hacks in the absence of proper information. Auto manufacturers have programs for foreign professionals without credit history. Credit Unions, in the absence of good quality data, make non-data driven lending decisions based on affiliate networks or incomplete information. They all have a need for good quality international credit information.

This week:5

Total:88

InterviewsStory 2: Quality data solves a real pain point

Validated in 60+ interviews

This week:5

Total:88

Interviews

Promising large scale origination

Partnering with CRAs

Focusing on global

Channels, partners and regulatory

Delivering pure B2B

Data aggregation

US data import

Channels

Key partnersReg.

What we thought What we learnedBMC

This week:5

Total:88

Interviews

Bottom-up: door-to-door with Bay Area credit unions

Through the middle: mapped the credit union space and COLD CALLED

Top-down: National Credit Union Foundation, Filene

We got out the building

Interviews: foreign professionals and Stanford students

Survey: immigration survey

Feedback: various MVP processes

US CRAs: US credit reporting agencies

Int’l CRAs: international CRA partnerships

Regulation: process, timing and cost of becoming a CRA

This week:5

Total:88

InterviewsStory 3: Disrupting the CRAs

Regulation to become a consumer reporting agencies is much easier than to become a lender and we can get a CRA license quickly and inexpensively

Validated in 20+ interviews

This week:5

Total:88

Interviews“Stories” have translated into thematic shifts

User pays

Broker / issuer of financial products

Partner pays

CRA

Revenue streams

Reg

What we thought What we learnedBMC

● No fatal flaw in business model● Nova will be regulated as a consumer

reporting agency (CRA) because (i) retain consumer information and (ii) receive revenue from lenders

● No licensing required to become a CRA simply requires proper disclosure (1.5 weeks)

● Nova cannot deny services to US citizens

● >50% chance of getting a patent!

InterviewsNova will be regulated as a CRA

● Engaged Pillsbury Law through Startup Legal Garage

InterviewsWeek 1 we thought our comps were lendersWe were wrong

Cred

it Re

porti

ng

Agen

cies

Domestic Banks

FinTech

Inter

natio

nal

BanksPayment

partners

Not a priority;more growth in unbanked and heavy reliance on FICO

Some ad hoc solutions;Prefer to work on provisioning and growth of TAM

Some new entrants;Lending algorithm still needs to be proven

Limited, ad-hoc actions;Regulatory limitations of accessing data internationally

No action in space

InterviewsCRAs prepare to be disrupted!

Cred

it Re

porti

ng

Agen

cies

FinTech

lenders

Relocation/ Housing Services

Financial data

scrapersCre

dit U

nion

Servic

e

Organ

izatio

ns

$30

InterviewsOur business model

Advisors

NovaScore

Credit Unions

CRAs

Legal (recourse)

Legal (licenses)

FinTechs

Feedback (-/+ reporting)

Employers$100-$1,000

$20

Thank you Nova mentors...

InterviewsFinancial model

InterviewsMarket sizing

42.1MTotal Global Citizens in the US as of 2015

1.4MNew-to-country students and professionals in the US in 2014

$155BPotential revenue from Global Citizens in the US

This week:5

Total:88

InterviewsChannels - what we found and did

What we foundWhat we did

Virtual product, virtual channel Data aggregator, validator, processor

B2B channel sell through lenders White-labeled Nova terminal

B2C channel origination through website Nova landing page. Started (digital) marketing

Virtual product B2B: data visualization & summary

Start with Nova dashboard. Later API integrations with existing underwriting software

Future channel potentially selling aggregated data

Maintain database with as much raw data as possible to gather