Workshop 4: How can communities benefit from crowdfunding?

Transcription

1 Workshop 4: How can communities benefit from crowdfunding? #microfinanceac2018 Facilitator: Oscar Ugarte, Executive Director, Seed Capital Bizkaia Speakers: Oliver Gajda, Executive Director, European Crowdfunding Network Jose Moncada, Executive Director, La Bolsa Social Kendra Thorogood, Senior Investment Manager, Kiva

2 Connecting People Through Lending to Alleviate Poverty Kendra Thorogood, Senior Investment Manager

3 Founded in 2005, Kiva is a crowdfunding platform that allows individuals to invest as little as $25 in entrepreneurs with limited access to capital.

4 Kiva s reach 1.5M 81 Loans Countries 1.7M Lenders $1.2B Total lent through Kiva 97% Repayment rate

5 How Kiva works Choose a borrower Browse categories of borrowers people looking to grow businesses, go to school, switch to clean energy and more. Make a loan Help fund a loan with as little as $25. Get repaid Kiva borrowers have a 97% repayment rate. Repeat! Recycle your funds to support another borrower or withdraw them.

6 Field Partner Model (97%) Direct Model (3%) Field Partners include microfinance institutions (MFIs), social enterprises, social enterprise aggregators/accelerators, schools, and nonprofits. Receive credit lines of $50K - $4MM Responsible for sourcing, underwriting loans Benefits for partners: 0% interest, credit risk transfer, partial FX loss coverage, term flexibility Direct loans of $1-$10K to SMEs in the US or $10-$50K to SGBs in 23 countries Kiva sources, assesses, underwrites US social underwriting model

7 How Kiva works $750

8 How Kiva works $25 $25 $750 $25 30 days

9 How Kiva works $25 $25 $25

10 What information is important to lenders? What information about a loan is most important to you? (select up to 3) Top answers: Loan use Borrower details Category Location 2016 Kiva lender survey

11 Main Challenges Complex operations Measuring impact Educating lenders Balancing supply and demand Regulations

12 Keys to Scale First mover advantage Riding the microfinance popularity wave & celebrity endorsements (the Oprah effect) PayPal partnership Fund recycling (14-month loan term) Brand and lender trust In-house tech

13 Kiva, Sierra Leone, and U.N. agencies announced the first implementation of the Kiva Protocol on Sept. 27, 2018, at the U.N. General Assembly. The Kiva Protocol will use distributed ledger technology to create a nationwide digital identification system

14 Thanks!

15 Bolsa Social participative finance

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17 WHAT IS BOLSA SOCIAL? MISSION Support the growth of companies with positive social and environmental impact and develop the impact investment culture, promoting ethical finance. MEMBERS VISION Become thefinancial market for impact investors and companies withpositive values VALUES Impact - Innovation - Rigour - Transparency

18 BOLSA SOCIAL Authorised by CNMV in for 10 social enterprises Community of users Profitable: 42% and 45% IRR profit in the first two companies Award for the Fintech with Highest Positive Impact (AEFI) and award for Financial Inclusion Fintech (Funcas - KPMG)

19 HOW DOES IT WORK? LABOLSA SOCIAL 14 Selection Investment Follow up Impact/Busines s Model/Potential Selection Committee Analysis and due diligence Goal 2-3 months campaign Escrow account. Goal achieved? YES Capital increase NO Money back with no cost Shareholders agreement Investorof reference Reports on impact and performance Impact investors forum

20 TEAM LA BOLSA SOCIAL 6 INVESTMENT COMITTE ANALYSIS OPERATIONS Jose Moncada CEO José is La Bolsa Social s founder and CEO. His main experience has been in financial policy, working at the Public Treasury (Madrid), the European Commission, and the European Securities and Markets Authority (ESMA). Former Spanish State Civil Manager, currently teaches at the University of La Sorbonne. He is also the chair of the Spanish Net of Social Impact, REDIS. Jaime Álvarez CIO More than 15 years of experience in risk capital investments, entrepreneurship and impact investments (Coller Capital, European Bank for Reconstruction and Development, Audaces Impact, Faro Energy...). Has worked in investment roles as CIO and Director of Investments. He also has extensive experience in the dayto-day startups as Daniele Calzolari Analysis 10+ years of experience in renewable energy, aerospace and media. He worked in business development, strategy and investment analysis in multinationals (Siemens, Econcern and Stork Fokker) and in startup (XEMC Darwind). MBA at IE Business School and Aerospace Engineer at Delft University of Technology. Laura Caballero Analysis More than 8 years experience inthe area of financial advice participating in transactions and corporate operations within international consulting companies (KPMG, Accuracy) including corporates and financial sector companies. She has participated in entrepreneurship projects. Ana Pérez Operations Ana has a bachelor degree in Economy and International Business from UAH, and she also specialized in external relations and international cooperation. In recent years, she has worked with United Nations andwith UNICEF Spain. In addition, she has been involved in various social projects as a volunteer. Garbiñe González Communication Graduate in Journalism and Digital Marketing specialist, with 8 years of experience as Social Media Planner, digital content curator and Project Manager, driving Marketing and digital communication plans.

21 ALTERNATIVE ONLINE INVESTMENT 7 GLOBAL IMPACT INVESTING ONLINE PLATFORMS IN EUROPE CROWDEQUITY IN EUROPE $ MAuM 16% anual growth M in M Invested in 2016 in start-ups in continental Europe. 4 times 2013 s amount. GIIN y EVPA annualreport 2017 Third European Alternative Finance Industry Report. Cambridge Centre for Alternative Finance, 2017

22 SIZE OF THE GLOBAL MARKET LABOLSA SOCIAL 14 Data in this presentation comes directly from the Third European Alternative Finance Industry Report published by the Cambridge Centre for Alternative Finance

23 GROWING TREND IN THE EUROPEAN MARKET LABOLSA SOCIAL 14 Significant yearly growths since 2013 Total of M in Europe UK largest jurisdiction 2,5 times continental Europe

24 INSTITUTIONAL INVESTOR LABOLSA SOCIAL 14

25 VOLUME BY MODELS LABOLSA SOCIAL 14

26 VOLUME PER COUNTRY LABOLSA SOCIAL 14

27 DISTINCTIVE FEATURES LA BOLSA SOCIAL 6 ENTREPRENEURS Creating something valuable Mission aligned investors Product, price andmarket validation INVESTORS Low-cost diversification Easy duediligence andbackground review Sharing financial risk Expertise and advise from the crowd Campaign asa marketing tool Crowdfunding for impact in Europe and the USA, Toniic (2013).

28 Change begings from within the system - Mohammed Yunnus, Grameen Bank founder Jose.moncada@bolsasocial.com