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September 2015
Innovations in Funding
The Kiva model.
David Kitusa
Regional Representative for Anglophone Africa
Kiva.org
Email: [email protected]
Cell phone: +254 721 660 547
2
People without access to
financial services: ~2.5B
Current Microfinance
Clients (Borrowers): 154M
Borrowers who have
received a loan on Kiva:
1,120,000
Global Financial Exclusion
3 Sources of Funding
Debt
Equity
SAVINGS
Crowd funding
4 What’s crowd funding?
Crowdfunding is the collective effort of individuals who network and pool their resources, usually
via the Internet, to support efforts initiated by other people or
organizations.
- Wikipedia
5 Crowdfunding
HARAMBEE
6 CROWD FUNDING
More than 1000 crowdfunding
platforms in the world
7 What are some of the crowdfunding models?
Debt Equity
Reward/Project based
Donations
Kiva, MYC4, PROSPER, Lending Club, Funding Cycle
Crowdfunder, Crowdcube, SYMBID
Kickstarter, Indiegogo Donorschoose.org, Razoo
8 CROWD FUNDING
Crowdfunding platforms raised $16.2 billion in 2014 up from $6.1
billion in 2013
(a 167% increase).
In 2015 it’s approximated to reach >$34.4 billion
http://www.crowdsourcing.org/
9 CROWD FUNDING
Story of Kiva
10 Mission and Vision
Our Mission
Kiva’s mission is to connect people, through lending, to alleviate poverty.
11
A Lender chooses a Borrower and makes a loan using a credit card or PayPal.
Kiva transfers the loan to a local Partner who pre-disbursed/disburses the loan to the Borrower.
Kiva repays the loan to Lender on a monthly basis. The Lender can then choose to withdraw funds or re-start the loan cycle all over again!
As the Borrower repays the loan, the Partner transfers funds back to Kiva and posts Business updates to the Lender at Kiva.org.
The Kiva Loan Cycle
1 2
4 3
12 The Kiva Loan Cycle
http://www.kiva.org/about
13 Together, a solution is possible.
83 Countries
300 Field Partners
$755 Million Loaned
Av. Loan size $400
98.79% Repayment rate
1,745,000 Entrepreneurs
1,300,000 Lenders
KIVA’s Impact to Date
14 Social Impact: Beyond Loan Volume
Financial Inclusion
Women’s Empowerment
Green Energy Water and Sanitation
Health Improvement
Start up Loans
Innovative Agriculture
(OAF)
Higher Education
(Strathmore)
Vulnerable groups
Mobile technology
Unbanked population
15 Kiva Fellows Program
Fellows serve as Kiva’s eyes and ears
on the ground, working directly with
Kiva’s field partners in over 70 countries
around the globe.
16
Field Partner Countries
Asia
Azerbaijan
Cambodia
India
Indonesia
Kyrgyzstan
Mongolia
Nepal
Pakistan
Philippines
Samoa
Tajikistan
Thailand
Vietnam
Africa (28)
Benin
Botswana
Burkina Faso
Burundi
Cameroon
Congo
Ghana
Ivory Coast
Kenya
Leshotho
Liberia
Malawi
Mali
Mozambique
Namibia
Nigeria
Rwanda
Senegal
Sierra Leone
Somalia
South Africa
South Sudan
Tanzania
The Democratic Republic of the Congo
Togo
Uganda
Zambia
Zimbabwe
Middle East
Iraq
Israel
Jordan
Lebanon
Palestine
Turkey
Yemen
North America Dominican Republic
Haiti
Mexico
United States
Central America Costa Rica
Belize
El Salvador
Guatemala
Honduras
Nicaragua
Panama
Bolivia
Brazil
Chile
Colombia
Ecuador
Paraguay
Peru
Suriname
South America
Eastern Europe
Samoa
Timor-Leste
Oceania
Albania Armenia
Bosnia and Herzegovina
Georgia
Kosovo
Ukraine
17 Who Can Partner with Kiva?
Minimum Criteria
Levels of Partnership Kiva has developed three levels of partnership to accommodate organizations with a broad range of financial needs:
Page 7
Level of
Partnership
Due Diligence Maximum Credit Line (USD)
Experimental
Partnership
Potential partner submits a brief application and supporting documentation for review by a Kiva analyst.
$50,000
Basic
Partnership
Potential partner submits a more detailed application and supporting documentation for review by a Kiva analyst.
$200,000
Full
Partnership
Potential partner submits a more detailed application and supporting documentation, including audited financials, for review by a Kiva analyst. In addition, a Kiva analyst conducts an onsite visit to meet with staff and board members.
$4.0 million
• Display a strong commitment to serving the needs of poor, vulnerable, and/or excluded populations.
• Have an existing lending program or be prepared to set up a lending program.
• Provide a specific proposal for using Kiva’s capital to fund loans with high social or environmental impact
• Be legally registered in its country of operation.
• Be able to legally accept and repay US Dollar debt capital and manage currency risk.
18
Entrepreneur
Lenders
1 2
3
4
Newest innovation: Kiva Zip
5
In the Kiva Zip model, we send the
loans directly to the entrepreneurs
19
Thank You!