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2015 annual review
Althea, Gilliard FarmsBrunswick, GA
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
$0k
$250k
Household Income
$129k
$207k
$20k $21k
Top 5% of households
+61%Bottom 20%
+7%
2014 dollars; Source: census.gov
Bottom quintile
Second quintile
Third quintile
Fourth quintile
Top quintile
-$50k
$750k
Household Net Worth
2000
2011
-566% -49%-7%
+10%
+11%
2011 dollars; Source: census.gov
Income and Wealth Inequality are on the rise in America.
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
$0k
$250k
Household Income
$129k
$207k
$20k $21k
Top 5% of households
+61%Bottom 20%
+7%
2014 dollars; Source: census.gov
Bottom quintile
Second quintile
Third quintile
Fourth quintile
Top quintile
-$50k
$750k
Household Net Worth
2000
2011
-566% -49%-7%
+10%
+11%
2011 dollars; Source: census.gov
Income and Wealth Inequality are on the rise in America.
And we believe Small Businesses can reverse this trend.
“That's the beauty of entrepreneurship: If a new company is formed, it hires people and creates jobs in its community. As it grows, people’s opportunities multiply and wages rise. Inequality diminishes because people get pulled into good jobs.
Today, two-thirds of new net jobs in the U.S. are being created by new firms that are less than five years old. If you want to ease income inequality, what you want are more new firms starting up and seeking employees.”
Andrew Yang, CEOVenture for America Marc, SF Laser
Oakland, CA
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
6%
8%
10%
12%
14%
16%
But Small Businesses & Entrepreneurship are under threat.
Over the last few years, firm exit rate has exceeded firm entry rate
for the first time in decades.
Firm exit rate
Firm entry rate
U.S. firm entry and exit rate by year
Source: U.S. Census Bureau; The Washington Post
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 20110.5
1.0
1.5
Because it’s increasingly hard for them to Access Capital.
Large business loans, +36%
Change in the Volume of Small Business Loans
Source: Institute for Local Self-Reliance; Federal Reserve Data. Small business loans are less than $1M; Micro business loans are less than $100K
Small business loans, -14%
Micro business loans, -33%
That’s where Kiva Zip comes in!
Esteban and Carolina, NoDá Design StudioBrooklyn, NY
In 2015, Adolis borrowed $10,000 from 99 lenders to buy a new baking oven and
refrigerator, and open her café Lovely Rita in Manhattan.
“I would like to thank all of you very much!
Family, friends and strangers who supported me by funding my loan, but also thank you for your amazingly warm
wishes and encouragement!
I consider this a very big contribution to my
success!”
Adolis, Lovely RitaManhattan, NY
In 2015, Amine borrowed $8,250 from 107 lenders to
invest in new equipment and marketing materials for his
restaurant in San Francisco’s Tenderloin district.
“Thank you guys for your support. If you get the chance, please
come check out my restaurant. It would be great to meet you.”
Amine, Soul Food CitySan Francisco, CA
In 2015, Bryce borrowed $10,000 from 145 lenders to expand his certified organic
greenhouse and install a renewable fuel heating
system on his family farm.
“Best wishes on the growth and development of the farm”,
Kenneth, Lender, Morrisville, NC
Bryce, Lazy Eight Stock FarmPaint Lick, KY
In 2015, 39,014 people crowdfunded $4,715,325of loans to 811 U.S. small business owners looking
to make a positive impact in their communities.
Amy, Building HuggerDetroit, MI
We were proud of our growth rate in 2015…
2011 2012 2013 2014 2015 2016 target$0M
$3M
$6M
$9M
$0.0M$0.4M
$1.6M
$2.7M
$4.7M
$8.6M
Kiva Zip fully funded loan volume by year
87 356 578 811 1,5006 loans made
+351%
+67%
+73%
…And proud of a few other rates too.
90% funding success rate
89% Loan repay-ment rate
0% interest rate
Martha, Words on Woodcuts PressPhiladelphia, PA
We continued to iterate on our “Social Underwriting”…
Antisocial underwriting
Social underwriting
Lending decisions are made based on financial data – the strength of a borrower’s credit score, collateral and cashflows.
Lending decisions are made based on social data – the strength of a borrower’s character, or their standing in their community.
Loans (and underwriting decisions) are made for the purpose of minimizing risk and maximizing profit.
Loans (and underwriting decisions) are made for the purpose of having a positive social impact.
Lending decisions are autocratically made by a single, centralized, objective and inflexible algorithm.
Lending decisions are democratically made by a crowd of millions of people – each with their own subjective interests, passions and reasons for lending.
…which allowed us expand economic opportunities for all.
Caucasian
African American
Hispanic
Asian
BiracialPacific Islander
Kiva Zip 2015 loans by ethnicity
More than half of our loans went to ethnic minorities in 2015, and more than half went to women small business owners…
…This compares to 36% and 15%, respectively, for traditional retail bank loans.
Source: Kiva Zip data, PayPal Working Capital study
We launched Kiva City Milwaukee in February…
Mayor Tom Barrett launches Kiva City Milwaukee at Milwaukee City Hall
George Mosher William G. and Christie A. Krugler
…Kiva City San Francisco in October…
Kiva President Premal Shah and Kiva Zip borrower Anna Tvelova launch Kiva City San Francisco
inside SF City Hall
…Kiva City New York in December…
Bill Clinton launches Kiva City New York in December 2015
…and got some great press coverage as a result.
Our impact is made possible by our Trustee partners…
1) NYC Small Business Solutions Centers, New York, NY
2) Tenderloin Economic Development Project, San Francisco, CA
3) The Wisconsin Women’s Business Initiative Corporation, Milwaukee, WI
4) Union Kitchen, Washington, DC
5) The City of Oakland, Oakland, CA
6) Institute for Veterans and Military Families, Syracuse, NY
7) Mission Economic Development Agency, San Francisco, CA
8) Northern Virginia Family Service, Falls Church, VA
9) Build Institute, Detroit, MI
10) Centro Community Partners, Oakland, CA
Mission Economic Development Agency,
San Francisco, CA
We couldn’t fit all 700 on one slide, but here are the Top 10:
…by our wonderful team, many of whom are volunteers…
…and by our lenders, whose generosity inspire us every day.
To everyone in the Kiva Zip community, thank you for making 2015
such a wonderful year.
We hope we’ll see you again in 2016!
Scott, Fox FarmRiverside, CA
Learn more
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