Microfinance Simulcast -2010 Class One

Microfinance Simulcast - 2010

Class One

10/24/2010 1MicroFinance Simulcast 2010. Sean Foote

Today

Introduction of instructor and students

Introduction to the course

Origins of Microfinance

“Millions for Millions”

Speaker: Sam Daley-Harris, Microcredit Summit

Looking ahead to next week


Sean Foote

Managing Managing PartnerPartner

••Labrador Labrador Ventures, earlyVentures, early--stage venture stage venture capitalcapital

••Principled Capital, impact investing Principled Capital, impact investing

Professional Faculty of UC BerkeleyProfessional Faculty of UC Berkeley’’s Haas School s Haas School of Businessof Business

•• Venture Capital and Private EquityVenture Capital and Private Equity

•• MicrofinanceMicrofinance

Boards and Advisory: Boards and Advisory:

•• CoCo--Founder, Founder, ToniicToniic, Village Capital, Village Capital

•• SVMN, Freedom from SVMN, Freedom from HungerHunger

[email protected]@alethion.com

(650) 255(650) 255--41344134

Boston Consulting Boston Consulting GroupGroup

AT&T Bell LaboratoriesAT&T Bell Laboratories

BSEE, University of BSEE, University of MissouriMissouri--RollaRolla

MBA, University of MBA, University of VirginiaVirginia’’s Darden s Darden Graduate School of Graduate School of BusinessBusiness

310/24/2010 MicroFinance Simulcast 2010. Sean Foote

Sean Foote

(the stuff at the bottom of the resume)

Singer songwriter with coffee shop aspirations

(www.myspace.com/seanfoote)

USA Triathlon National Team Amateur triathlete (long

course)

Sailor

410/24/2010 MicroFinance Simulcast 2010. Sean Foote

The Ones Who Get Things Done

Julen Baztarrica

Sheil Tamboli


10/24/2010 6

Course Syllabus – Content

Microfinance – origins

Design of microfinance business systems

Challenges and constraints

Beyond Credit

Managing and working at an MFI

Investing in microfinance

New initiatives

MicroFinance Simulcast 2010. Sean Foote

10/24/2010 7

Course Syllabus – Speakers

10/26 Introduction, overview

11/ 2 MFI and industry structure &

design

11/9 MFI operations

11/16 Challenges for MFIs

11/23 Beyond Credit

11/30 Investing in MFIs

12/7 Innovation & entrepreneurship

Sam Daley-Harris, Microcredit Summit

Kendall Mau – Prisma

Monica Brand – ACCION, Frontier

Jonathan Lewis – MCE, OppCollab

Chris Dunford – Freedom From Hunger

Maya Chorengal – Elevar

Premal Shah– Kiva.org


10/24/2010 8

Course Syllabus – Structure and

Assignments

7 classes – 4:10 to 6:00

Lecture, discussion, speakers, readings

Guests are welcome – in the classroom

Graded satisfactory / unsatisfactory

Attendance matters – 6 of 7 required to pass

Optional final assignment – a short business plan


10/24/2010 9

Logistics

Reading materials availability

� Through your campus coordinator

Mficonnect.com –post class discussions

Net Impact Meet Up – TBD

Campus coordinator phone calls

Julen and Sheil are here for all of us!


Simulcast Logistics

Chat protocol – how it will work

Let’s try it:


Who Are You?

How many are you?

How many of you have MFI experience?

Why are you here?


Why Are We Here?

Money compassion

Patterns


Internet Usage vs.

Phillippine Active MFI Clients

10/24/2010 13Source: NSCB (nscb.gov.ph) 2004 - 2007, Cisco (as quoted in the New York Times) 2005 2008

Phillippine Active MFI Clients (000s)

Internet Usage (Terabytes)

1.5

2.1

3.1

4.6

719

1,498

2,452

3,588


Money compassion

Patterns

Why Are We Here?


Diving board

White space

Supply and demand

Today








Profit versus Non-Profit

10/24/2010 16

CharityBen & Jerry’s,MFIs

EnronPAC

Social Good

Not

ProfitNon-profit


Why Doesn’t Money Flow to

the Poor?

10/24/2010 17

Output

Capital


Risk

10/24/2010 18

220 0

110110

Russian real estate

US T-bill

50%50%Expectedvalue

Probability

110

110


The Development of Finance

Informal services

ROSCAs

ASCA

For profit

Other


So What Does History Tell Us?

Demand exists

Costs of delivery can be low

The poor are financially sophisticated

Local knowledge helps

Informal systems are adaptable


Today








Intermission

10/24/2010 MicroFinance Simulcast 2010. Sean Foote 22

Make Money or Not?

Our answers may differ

This is one of the common debates with which

you should be familiar

There does not appear to be a “right” answer

Establish your own position based on what

morally and intellectually works for you.


The 3% Dilemma

10/24/2010 MicroFinance Simulcast 2010. Sean Foote 24

$14 trillion

$0.35 trillion

Annual

Revenues

“I rob banks ‘cause that’s where the money is.”

-- Willie Horton, famous bank robber

“I rob banks ‘cause that’s where the money is.”

-- Willie Horton, famous bank robber

Today








Sam Daley-Harris

Director, Microcredit Summit Campaign

Founder, RESULTS

Leading campaign for UN Millenium Poverty Goals

Author: Reclaiming our Democracy, Pathways Out of Poverty and More Pathways Out of Poverty

Businessman: Vitro, Farmacias Benavides, Elektra

Susan M. Davis Lifetime Achievement Award


Today








10/24/2010 28

Class 2: Microfinance Process and

Ecosystem November 1, 2010

Topics: � Design decisions in MFIs – Group Lending and variations,

Gender

Guest Speaker: Kendall Mau, Prisma

Readings:

� Article: “Variations in Micro-finance Design : Some Important Variables,” Par Jens REINKE, ADA. http://www.globenet.org/archives/web/2006/www.globenet.org/horizon-local/ada/reinke.html

� Website: Prisma, http://www.prismamicrofinance.com


Questions


Microfinance Simulcast - 2010

Class One


Documents

Microfinance Simulcast -2010 Class One