www.wokai.org

Outline What is Wokai

How we started

How we developed

What we are today

What we plan to become tomorrow

WHAT IS WOKAI

The problem

300,000,000

The problem

600,000,000

The reason

Property Rights

Education

Healthcare Financial Services

The financial services reason No available financial services

— Formal financial institutions

• National banks (BOC, CCB, ABC, ICBC) not involved in consumer finance

• Rural Credit Cooperatives (RCCs) not tailored to client needs (appraisal fees, difficult repayment structure)

—Informal financial institutions

• Unfavorable financial terms

• Not provide opportunities for start-up businesses

—Government poverty alleviation programs

• Not finance, only philanthropy

• Limited in reach, scale

The solution Microfinance provides loans to the poor

— What is it?

— Income generating loans

— 15-20% interest rates

— 1 year loan period

— Monthly repayments

— Group-guarantee system

— Does it work?

— 95% loan repayment rates

— 300 MFIS since 1994

— 100 active today

— 70 million borrowers helped

The call for action China microfinance is limited

1. Lack of Economic Resources

— No regulatory framework

— Decreasing financial resources

2. Absence of Microfinance Ecosystem

— Young microfinance sector

Our organization Wokai provides a user-driven

microfinance website that connects contributors around the world with borrowers in China

How it works

Lend ConnectLearn

Wokai Website

Behind the scenes

Front End

Lend ConnectLearn

Wokai Website

1. Wokai posts borrower profiles online

2. Contributors browse profiles, select who to fund, and transfer loan capital to Wokai

3. Wokai distributes loan capital to Field Partners for allocation to borrowers

4. Field Partners disperses loan and then collects repayments and updates over time

5. Once loans have been repaid, Contributors obtain funds back in their My Wokai account

6. Contributors choose new borrower to fund

1. Wokai posts borrower profiles online

2. Contributors browse profiles, select who to fund, and transfer loan capital to Wokai

3. Wokai distributes loan capital to Field Partners for allocation to borrowers

4. Field Partners disperses loan and then collects repayments and updates over time

5. Once loans have been repaid, Contributors obtain funds back in their My Wokai account

6. Contributors choose new borrower to fund

Back End

Due Diligence Process

Investment Committee

Training Field Partners

Due Diligence Process

Investment Committee

Training Field Partners

Behind the scenes

Front End

Lend ConnectLearn

Wokai Website

Content includes research articles, case studies, news, pictures, videos, podcasts

Contributors can upload content

Contributors can rate content

Contributors can share content

Contributors can contact content publishers

Content includes research articles, case studies, news, pictures, videos, podcasts

Contributors can upload content

Contributors can rate content

Contributors can share content

Contributors can contact content publishers

Back End

Collect & translate old content

Create new content on MF players, Field Partners, borrowers (Wokai Fellow)

Create blog

Collect & translate old content

Create new content on MF players, Field Partners, borrowers (Wokai Fellow)

Create blog

Behind the scenes

Front End

Lend ConnectLearn

Wokai Website

Connects Field Partners to Field Partners

Connects borrowers to contributors

Connects contributors to contributors

Connects China Microfinance community to US Microfinance community

Connects Field Partners to Field Partners

Connects borrowers to contributors

Connects contributors to contributors

Connects China Microfinance community to US Microfinance community

Back End

Establish & maintain Chapter network

Employ Viral marketing online

Network in US and China

Establish & maintain Chapter network

Employ Viral marketing online

Network in US and China

Our field partners CZWSDA - Chifeng Zhaowuda Womens

Sustainable Development Association

— Location: Chifeng, Inner Mongolia

— Loan portfolio: $1,090,708

— Clients: 3128

— Avg Income: 3,000RMB ($420USD)

— Avg Loan Size: $600

ARDY - Association for the Rural Development of Yilong County

— Location: Yilong, Sichuan Province

— Loan Portfolio: $842,714

— Clients: 2437

— Avg Loan Size: $620

— Income: 3,000RMB ($420USD)

How we help

Short Term: Capital

— Year one:

o 4 Field Partners

o $500,000

Long Term: Sector Development

— Awareness

— Information Flow

— Transparency

— Collaboration

HOW WE STARTED

Timeline 2001-2003: Courtney introduced to China & Economics

2003-2004: Courtney visits China

Sum 2004: Courtney volunteers for Planet Finance and Chinese Academy of Social Sciences (Professor Du Xiao Shan)

Sum 2005: Courtney obtained grant from United Nations Development Program (UNDP) and completed independent field study at Tianjin Microfinance Institution

2006-2007: Courtney completes Fulbright researching underground financial institutions

Fall 2006: Courtney meets Casey at Tsinghua University

Spring 2007: Courtney & Casey found Wokai

HOW WE DEVELOPED

Fundraising June 2006

— Personal Contacts

• Dr. Laffer ($10,000)

• Casey’s parents foundation ($40,000)

— Contacts of Personal Contacts

• Omydiar Network

• Silicon Valley Angels

• Draper Richards Foundation

July 2006

— Personal Contribution

• Courtney sells car ($10,000)

• Casey donates savings ($10,000)

Infrastructure Beijing

— Office

— Human Resources

• Staff (Director of Field Partnerships, COO)

• Volunteers (Penn International Business Volunteers, Harvard Consulting Group)

— Legal

• Sponsors (O’Melveny & Meyers, Shartsis Friese, Morrisson Foerster, Proskauer Rose)

• 501c3, LLC, Contracts, Visas, etc

— Financial

• Bank Accounts

• Salary & Benefits

— Marketing/PR

• Sponsors (Khaki Creative Designs, Eastwest PR, Yummy Porky)

• Volunteers

Infrastructure United States

— Establish Wokai Chapters

• Recruit volunteers

o Reach out to China network

o Use Linked In, Idealist, China blog sites

• Train volunteers

o Fly and present to each Chapter

o Vote on leadership positions

• Build support network

o Provide operational & emotional support

o Create information flow & standardization

• Maintain contact

o Dial-in monthly

o Visit quarterly

Operations Beijing

— Microfinance

• Training

• Due Diligence Process

• Investment Committee

o Edi San (Microvest), Maya Chorengel (Dignity Fund, Unitus Equity Fund), April Rinne (Unitus)

• Field Partners

o CSZWDA (Chifeng, Inner Mongolia), ARDY (Yilong, Sichuan)

— Website

• Temporary site

• Final site

o Phase 1: Lend

o Phase 2: Learn

o Phase 3: Connect

Operations United States

— Develop Chapter Network

• Networking

o Microfinance Community

o Chinese Community

• Outreach

o Panel Discussions

o Event Sponsorship

• Committee Work

o Grants Committee

o Major Donor Outreach Committee

o Finance Committee

o Marketing Committee

o Online Social Media Committee

Lessons Learned Fundraising

— Use personal contacts (People are betting on you)

— Get skin in the game

— Be direct; Be specific

Infrastructure

— Develop a good set of PR materials & temporary website

— Get sponsors

Operations

— Maintain personal contact

— Start small

— Create structure & ownership (“structured chaos”)

— Increase information flow (Dial-in, Basecamp, templates, PR materials)

— Encourage group work over individual work

— Establish a feedback mechanism

Lessons Learned Technology

— Find out what you like

— Develop an outline and mock-up

— Find a technology assessment team

— Establish well-defined contract (milestones, goal-oriented payment schedule)

— Break the site into peices

— Develop site openly

— Don’t be afraid to pull the plug

WHO WE ARE TODAY

Organization Headquarters Beijing, China

4 Wokai staff (CEO, COO, Director of Marketing, Director of Field Partnerships)

2 Field Partners

3 US Chapters

75 Volunteers

Website Phase 1 complete

— Completed 2nd round of 100 Beta Testers

— Dispersed 150 loans

— Launching site at end of November

Operations Building Board of Directors

— Choose 2 founding board members

— Establish rules & responsibilities

— Build board

Fundraising

— Launched email fundraising campaign

— Develop Major Donor Outreach materials & plan

— Develop Chapter fundraising plan

Growing Field Partnerships (4 by end of year 1)

Developing Website

— Phase 2 (Learn)

— Phase 3 (Connect)

Network Microfinance Players

China Players

WHO WE WANT TO BE TOMORROW

Our vision Wokai want to become Asia Society 2.0

Why do people like Wokai?

CHINA

How can people connect to China now?

Big organizations

— Asia Society

— Asia Foundation

Grass roots non-profits

— Rural Education

— Green Initiatives

— Eduaction

— Healthcare

— Human Rights

How can they better connect? Big organizations

— Lack transparency

— Lack personalization

— Institutions and large donors, not individuals

o Aging donor base

Grass roots non-profits

— Not sustainable

— Not connected

— Lack transparency

— Individual donors, not institutions

o Draining relationships with donors

How is Wokai different? Transparent

How is Wokai different? Young

How is Wokai different? Target all donor types (individuals and institutions)

$25

$150

How is Wokai different? Scaleable

SEATTLE NEW YORKSF

BEIJING

Chapter Network

Website

What does that mean? Wokai has created a pipeline for connecting back to China

Where could this go? We believe that pipeline can reach more industries than just microfinance

How would it work? Wokai would work with local Field Partners to distribute contributions

How would it work? Wokai

1) Choose “star” Field Partner in each industry

2) Establish a P2P system that worked with Field Partner operations

3) Train the Field Partner on Wokai system

4) Audit the Field Partner biannually to ensure transparency

Why is this good for Wokai ? Limited growth

— Slow loan portfolio growth

— Limited long-term scaleability (Field Partners)

Limited userbase

— Not all users are interested in microfinance

Limited content

— Low borrower diversity

Why is this good for China ? Collaboration

— Field Partners

o Same industry

o Different industries

— Contributors

o Highly decentralized and unnconnected

o Unite those interested in China on one website

What’s the plan now? Focus on Microfinance

— Strengthen Field Partners

— Grow contributor base

Potentially expand to new industries every two years

Final thoughts “Be the change you wish to see in the world.” – Ghandi

"Only those who dare to fail greatly can ever achieve greatly." - Robert Kennedy

"The problems that exist in the world today cannot be solved by the level of thinking that created them." - Albert Einstein