innovations in funding; the kiva model sam 2015 - plenary day 6

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September 2015

Innovations in Funding

The Kiva model.

David Kitusa

Regional Representative for Anglophone Africa

Kiva.org

Email: kitusa@kiva.org

Cell phone: +254 721 660 547

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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.

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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

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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.

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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:

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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.

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Entrepreneur

Lenders

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Newest innovation: Kiva Zip

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In the Kiva Zip model, we send the

loans directly to the entrepreneurs

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Thank You!