DOCSLIB.ORG

The Case of Kiva.Org

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
The Case of Kiva.Org Working Paper WP-1137-E March, 2016 CROWDFUNDING SUCCESS: THE CASE OF KIVA.ORG Melina Moleskis Miguel Ángel Canela IESE Business School – University of Navarra Av. Pearson, 21 – 08034 Barcelona, Spain. Phone: (+34) 93 253 42 00 Fax: (+34) 93 253 43 43 Camino del Cerro del Águila, 3 (Ctra. de Castilla, km 5,180) – 28023 Madrid, Spain. Phone: (+34) 91 357 08 09 Fax: (+34) 91 357 29 13 Copyright © 2016 IESE Business School. IESE Business School-University of Navarra - 1 CROWDFUNDING SUCCESS: THE CASE OF KIVA.ORG Melina Moleskis1 Miguel Ángel Canela2 Abstract Crowdfunding is the process of raising money to fund a project or business venture through numerous investors and via an Internet platform. The objective of this report is to examine the growing phenomenon of crowdfunding as an alternative method for raising finance and the factors that lie behind its success. The analysis focuses on Kiva.org, one of the most successful crowdfunding platforms in the world. Keywords: crowdfunding; Kiva; funding strategy; online platforms. 1 PhD candidate, IESE. [email protected]. 2 Visiting Professor, Managerial Decision Sciences, IESE. [email protected]. IESE Business School-University of Navarra CROWDFUNDING SUCCESS: THE CASE OF KIVA.ORG Table of Contents 1. INTRODUCTION 2 1.1 The Phenomenon of Crowdfunding 2 1.2 Kiva.org 2 1.3 Crowdfunding at Kiva 3 2. THE KIVA WORLD 3 2.1 “Objects” in the Kiva World 3 2.2 Funding and Repayment Process 5 2.3 Risks to Repayment 6 3. METHODOLOGY 7 3.1 Capturing the Data 7 3.2 Processing the Data 9 3.3 Methods of Analysis 11 4. THE LENDERS 11 4.1 Kiva Lenders 11 4.2 Description of the Lender Population 11 4.3 Lending Activity 13 5. THE PARTNERS 14 5.1 Kiva Field Partners 14 5.2 Description of the Partner Population 15 5.3 Partner Risk and Interest Rate Policy 16 6. THE LOANS 17 6.1 Kiva Loans 17 6.2 Description of the Loan Population 18 6.3 Loan Status: Success or Failure 22 7. THE DRIVERS OF SUCCESS OR FAILURE IN FUNDRAISING 25 7.1 Expiration 25 7.2 Defaults 29 7.3 Refunds 32 8. CONCLUSIONS AND FURTHER STUDY 32 9. REFERENCES 34 IESE Business School-University of Navarra 1. Introduction 1.1 The Phenomenon of Crowdfunding Crowdfunding is the process of raising money to fund a project or business venture through numerous investors and via an Internet platform. Online crowdfunding is a relatively new phenomenon that has increased the number of ways in which consumers, entrepreneurs and organizations can access capital. In principle, crowdfunding platforms are designed to put individuals who are willing to lend or invest their money in contact with other individuals, projects or businesses that need financial support. Crowdfunding as a concept predates the Internet since projects such as the Statue of Liberty raised funds from a large number of donors. In that case, the donors were the people of France, enticed through a large number of fundraising events and auctions, back in 1882. Crowdfunding gained traction, however, after the launch of the Internet as a consequence of global connectivity, easy access to online content and increased awareness of financing needs. In 2015, crowdfunding websites helped companies and individuals worldwide raise $34 billion from members of the public (Massolution, 2015). Moreover, the industry is projected to have raised $1 trillion in 2025. The objective of this report is to examine more closely the new and important phenomenon of crowdfunding as an alternative method for raising finance and the factors that lie behind its success. This report serves as the foreground to our academic work on crowdfunding, which seeks to identify theoretically and empirically the factors behind crowdfunding’s success, in the contexts of both entrepreneurship and charity (Moleskis, Alegre and Canela, 2016). We focus our analysis on Kiva.org, one of the most successful crowdfunding platforms in the world. 1.2 Kiva.org Founded in 2005, Kiva.org is one of the world’s largest online crowdfunding platforms where people can lend money to underserved entrepreneurs across the globe. With the mission of “connecting people through lending to alleviate poverty,” Kiva strives to provide safe and affordable access to capital in regions where traditional banking services fail to do so, thereby enabling people to create opportunities for themselves and their families by becoming entrepreneurs. In essence, Kiva acts as an online bridge between borrowers and lenders. The profiles of people from developing countries who are in search of microcredit are posted on Kiva’s platform. Lenders browse the different profiles and invest money in their preferred projects, according to the characteristics of the loan request and the borrower. For instance, the country of origin and gender of the borrower might attract more or less funding depending on the fit with the lender’s preferences, as might the intended use of the loan and the repayment term, which are some of the loan characteristics. Kiva itself does not collect any interest on the loans it facilitates, nor do Kiva lenders gain interest on the loans. Borrowers, however, pay interest to the intermediaries of the financing process, referred to as field partners, who are essentially the ones that bear most of the risk. Based on data collected in March 2015, Kiva is active in 83 developing countries and collaborates with 304 field partners. This collaboration with field partners is a special trait of Kiva, compared to many other lending platforms. The field partners’ role is to facilitate the process by establishing a local presence and advancing the money to the borrowers prior to posting the loan request on the Kiva platform, so as to give the borrowers a head start in their entrepreneurial venture. To date, the organization has crowdfunded more than 1 million loans, totaling more than $800 million, at a repayment rate of 98.4%. 2 - IESE Business School-University of Navarra 1.3 Crowdfunding at Kiva Kiva allows microfinance institutions, social businesses, schools and nonprofit organizations around the world, which it calls field partners, to post profiles of qualified local entrepreneurs on its website. The process begins when a person in a developing country approaches a field partner to ask for a loan, or vice versa. The partner then evaluates the profile of the entrepreneur and accepts or rejects the application. If the application is accepted, the partner uploads the borrower’s profile onto the Kiva platform, including a photograph of the borrower, the description of the intended use for the loan and the amount requested. Loan requests are posted for a period of 30 days only, during which time lenders may respond to the request for funding. Eventually, those requests that do not attract the requested amount are declared to have expired. On the investor side, lenders browse and choose an entrepreneur they wish to fund. Kiva lenders may select and decide to fund any of the available loans posted on the platform. The minimum funding amount is $25 and, on most occasions, a loan is funded by several lenders. The lenders then transfer their funds to Kiva through a special service on PayPal, which waives its transaction fee and thereby spares lenders any costs other than funding. Upon receiving money from various lenders, Kiva aggregates the capital and transfers it to the appropriate field partner. Once a project has been funded, the repayment phase starts. Repayment may occur at different intervals and over varying time periods, according to the agreement between the entrepreneur and the field partner. The entrepreneur returns the borrowed amount plus interest to the partner who, in turn, returns the invested money to the lender but keeps the interest. In that way, the lender recovers the money invested and can decide to withdraw the money or reinvest it in other Kiva projects. 2. The Kiva World 2.1 “Objects” in the Kiva World The key “objects” in the Kiva world are the borrower, the lender and the partner, all of whom are connected to the loan. A borrower is someone who has requested a loan. Borrowers are often referred to as “businesses” or “entrepreneurs” in order to emphasize the entrepreneurial spirit of these individuals who work to make a difference in their lives. A loan may have more than one borrower and, in this case, the loan is considered a group loan. Information about the borrower includes gender and country of origin. A lender is a user registered on the Kiva website for the purposes of lending money and participating in the community. Some lenders have public profiles, known as lender pages, on the Kiva website, where they can share details about their activities and mission. Most lenders, however, refrain from displaying their public information and are referred to as “anonymous.” In addition, not all lenders are active in the sense of having provided a loan. Moreover, lenders can coordinate their activity on Kiva through lending teams. These teams are usually formed around a common interest (sometimes related to lending, sometimes not) or may represent real-world groups outside Kiva such as a church or a class of students. Examples include the Kiva Christians and Harvard University teams. Teams also have profile information, similar to lenders, where they post a team photo and explain why the team members have come together to provide a loan. Lending teams have been described extensively elsewhere (e.g., Hartley, 2010). More information can be found at http://www.kiva.org/teams. IESE Business School-University of Navarra - 3 A partner, or Kiva field partner, is usually a microfinance institution with which Kiva works to find and fund loans.
Load more

Recommended publications
  • East Africa Crowdfunding Landscape Study
    REPORT | OCTOBER 2016 East Africa Crowdfunding Landscape Study REDUCING POVERTY THROUGH FINANCIAL SECTOR DEVELOPMENT Seven Things We Learned 1 2 3 4 East African East Africa’s Crowdfunding There’s appetite to crowdfunding platforms report risks and the do business and to markets are on promising regulatory learn more from the move. progress. environment. across East Africa. Crowdfunding platforms Since 2012 M-Changa In Kenya, for example, Over 65 participants at- (donation, rewards, debt has raised $900,000 Section 12A of the Capi- tended the Indaba & and equity) raised $37.2 through 46,000 tal Markets Act provides a Marketplace from all cor- million in 2015 in Kenya, donations to 6,129 safe space for innovations ners of the East African Rwanda, Tanzania and fundraisers. Pesa Zetu to grow before being sub- market. Uganda. By the end of Q1 and LelaFund are also ject to the full regulatory 2016, this figure reached opening access to their regime. $17.8 million – a 170% deals on the platform. year-on-year increase. 5 6 7 East Africa’s MSMEs ex- There are both commercial Global crowdfunding press a demand for alterna- and development oppor- markets are growing tive finance, but they’re not tunities for crowdfunding fast but also evolving. always investment-ready or platforms in East Africa. Finance raised by crowdfunding able to locate financiers. Crowdfunding platforms have the platforms worldwide increased from 45% of Kenyan start-ups sampled re- potential to mobilise and allocate $2.7 billion in 2012 to an estimated quire between $10,000 and $50,000 capital more cheaply and quickly $34 billion in 2015.
    [Show full text]
  • Kiva Innovating in the Field of Education by Microlending to Students Around the World
    Kiva Innovating in the Field of Education by Microlending To Students Around the World Join the Global Movement for Women’s Empowerment and Education by Directing a $25 Loan for Free at Kiva.org/women More Kiva Education Stories, September 2012: Back to School: 6th grade teacher Kristen Goggin brings Kiva into the classroom Back to School: Campolindo Cougars have Kiva spirit! Kiva goes back to school with education loans around the world New Field Partner: Colfuturo makes graduate school possible for Colombia's future leaders New Field Partner: CampoAlto brings vocational training to Colombia's marginalized students New Field Partner: Building a new generation of leaders with African Leadership Academy Media Contact: Jason Riggs, [email protected] August 15, 2012 -- While those in the developed world live in the age of the information revolution, millions of the world’s poor are still unable to receive even a basic education. It’s estimated that a billion people entered this century unable to read a book or sign their own name. Access to education sits at the crux of poverty and economic development. With a more educated population we nourish a more robust and dynamic workforce, stronger civic engagement and home-grown innovations solving regional problems. Without access to education, progress comes to a stand still. Not surprisingly the countries with the most out- of-school children are also are some of the world’s poorest. Outside the United States, student loans are rare. For too many young people, no matter how bright and gifted they may be, access to higher education can be near impossible without the necessary financial resources.
    [Show full text]
  • Trends in Global Higher Education: Tracking an Academic Revolution a Report Prepared for the UNESCO 2009 World Conference on Higher Education Philip G
    Trends in Global Higher Education: Tracking an Academic Revolution A Report Prepared for the UNESCO 2009 World Conference on Higher Education Philip G. Altbach Liz Reisberg Laura E. Rumbley Published with support from SIDA/SAREC trend_final-rep_noApp.qxd 18/06/2009 12:21 Page 1 Trends in Global Higher Education: Tracking an Academic Revolution A Report Prepared for the UNESCO 2009 World Conference on Higher Education Philip G. Altbach Liz Reisberg Laura E. Rumbley trend_final-rep_noApp.qxd 18/06/2009 12:21 Page 2 The editors and authors are responsible for the choice and presentation of the facts contained in this document and for the opinions expressed therein, which are not necessarily those of UNESCO and do not commit the Organization. The designations employed and the presentation of the material throughout this document do not imply the expression of any opinion whatsoever on the part of UNESCO concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries. Published in 2009 by the United Nations Educational, Scientific and Cultural Organization 7, place de Fontenoy, 75352 Paris 07 SP Set and printed in the workshops of UNESCO Graphic design - www.barbara-brink.com Cover photos © UNESCO/A. Abbe © UNESCO/M. Loncarevic © UNESCO/V. M. C. Victoria ED.2009/Conf.402/inf.5 © UNESCO 2009 Printed in France trend_final-rep_noApp.qxd 18/06/2009 12:21 Page i Table of Contents Table of Contents Executive Summary iii Preface xxiii Abbreviations xxvi 1. Introduction 1 2. Globalization and Internationalization 23 3.
    [Show full text]
  • Minneapolis Intelligent Operations Platform Mission Control Focus Manage Event Horizon Normal Planned Events
    Minneapolis Intelligent Operations Platform Mission Control Focus Manage Event Horizon Normal Planned Events Predicted Events Better coordinate city operations to gain efficiencies Deal more effectively with special events Improve handling of Day-to-Day emergencies Operations Unplanned Events 11 “Working” Functional Concept • Pattern mining and Correlations • Capacity analysis • Clustering analysis • Resource optimization • Streaming, Sequence Analysis • Planning & Impact analysis • Simulation analysis • Institutional Knowledge capturing • Effectiveness metrics modeling • Learning & classification • Statistical analysis and reporting • Trend analysis 12 Customer Perspectives Residents / visitors Elected Officials Department leaders and employees Business view – Enterprise versus specific need(s) Geographic focus – City-wide versus specific geography (ward, precinct, etc.) Data visualized – map versus time Emphasizes value in having a product with generic, and thus, wide-spread application 13 Turning data into decisions Philosophy: Data → Information → Knowledge Largely focused on Rear-view Macro-geography with some exceptions One dimensional (based on data from one department) Current City data-driven efforts Police Code4 Results Minneapolis Intelligent Operations Platform (IOP) 14 Current approach Measure / monitor Adjust Apply best intervention guess as necessary intervention Measure / monitor 15 What we get today Tot al Number of Fires 2.500 2,194 2.068 1,859 1\IINNEAPOLIS POLICE DEPARTMENT . 2.000 1,17~ 1.808 Vmlent Cnnu• Hot Spots m 2012 1.489 1,500 1,401 1,37) 1,348 1.347 1.2SO 1.200 age- adj usted death rate 1,000 per 1000 pooplo • S68 ._ 0 '-r- L 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 201J 201J 2014 T>rget thru Ql r.raet Sourc~.
    [Show full text]
  • Access to Capital Directory
    State of Nevada Department of Business and Industry Access to Capital Resource Directory Page | 1 GRANTS Government grants are funded by your tax dollars and, therefore, require very stringent compliance and reporting measures to ensure the money is well spent. Grants from the Federal government are authorized and appropriated through bills passed by Congress and signed by the President. The grant authority varies widely among agencies. Some business grants are available through state and local programs, nonprofit organizations and other groups. These grants are not necessarily free money, and usually require the recipient to match funds or combine the grant with other forms of financing such as a loan. The amount of the grant money available varies with each business and each grantor. Below are some resources to grant searches and specific grant opportunities: Program/Sponsor Product Details Contact Information There is a loan/grant search tool (Access Business.usa.gov Financing Wizard). Mostly loans here but Support Center some grant possibilities. SBA has authority to make grants to non- For Clark County Only – profit and educational organizations in Phone: 702-388-6611 many of its counseling and training Email: Roy Brady at SBA-Government programs, but does not have authority to [email protected] Grant Resources make grants to small businesses. Click on the 'Program/Sponsor" link for articles on Outside of Clark County – government grant facts and research Phone: 775-827-4923 Email: [email protected] grants for small businesses. Grant program assistance is provided in many ways, including direct or guaranteed loans, grants, technical assistance, Nevada USDA service centers by USDA Rural research and educational materials.
    [Show full text]
  • Understanding and Promoting Micro-Finance Activities in Kiva.Org
    Understanding and Promoting Micro-Finance Activities in Kiva.org Jaegul Choo Changhyun Lee Daniel Lee Georgia Institute of Georgia Institute of Georgia Tech Research Technology Technology Institute [email protected] [email protected] [email protected] Hongyuan Zha Haesun Park Georgia Institute of Georgia Institute of Technology Technology [email protected] [email protected] ABSTRACT Non-profit Micro-finance organizations provide loaning op- portunities to eradicate poverty by financially equipping im- poverished, yet skilled entrepreneurs who are in desperate need of an institution that lends to those who have little. Kiva.org, a widely-used crowd-funded micro-financial ser- vice, provides researchers with an extensive amount of pub- licly available data containing a rich set of heterogeneous information regarding micro-financial transactions. Our ob- jective in this paper is to identify the key factors that en- courage people to make micro-financing donations, and ulti- mately, to keep them actively involved. In our contribution to further promote a healthy micro-finance ecosystem, we detail our personalized loan recommendation system which we formulate as a supervised learning problem where we try Figure 1: An overview of how Kiva works. 1. A borrower to predict how likely a given lender will fund a new loan. requests a loan to a (field) partner, and a loan is disbursed. We construct the features for each data item by utilizing 2. The partner uploads a loan request to Kiva, and lenders the available connectivity relationships in order to integrate fund the loan. 3. The borrower makes repayments through all the available Kiva data sources.
    [Show full text]
  • Kiva User Funds, Llc Financial Statements As of May 31, 2012
    KIVA USER FUNDS, LLC FINANCIAL STATEMENTS AS OF MAY 31, 2012 KIVA USER FUNDS, LLC CONTENTS May 31, 2012 Page INDEPENDENT AUDITOR’S REPORT 1 FINANCIAL STATEMENT Balance Sheet 2 Notes to Financial Statement 3 - 12 INDEPENDENT AUDITOR’S REPORT To the Board of Directors Kiva User Funds, LLC San Francisco, California We have audited the accompanying balance sheet of Kiva User Funds, LLC (“KUF”) as of May 31, 2012. This financial statement is the responsibility of KUF's management. Our responsibility is to express an opinion on this financial statement based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provide a reasonable basis for our opinion. In our opinion, the balance sheet referred to above presents fairly, in all material respects, the financial position of Kiva User Funds, LLC as of May 31, 2012, in conformity with accounting principles generally accepted in the United States of America. SingerLewak LLP San Jose, California October 26, 2012 KIVA USER FUNDS, LLC BALANCE SHEET AS OF May 31, 2012 ASSETS Cash $ 41,134,798 Accounts receivable from users 33,846 Loans receivable 35,483,885 Total assets$ 76,652,529 LIABILITIES Accounts payable to lenders$ 96,362 Due to Kiva Microfunds 700,120 Unsettled loan transactions 45,004,947 Funds held on behalf of users 27,450,915 Unredeemed Kiva Cards 3,400,185 Total liabilities$ 76,652,529 The accompanying notes are an integral part of this financial statement.
    [Show full text]
  • Field Guide to Software for Nonprofit Immigration Advocates, Organizers, and Service Providers
    THE FIELD GUIDE TO SOFTWARE FOR NONPROFIT IMMIGRATION ADVOCATES, ORGANIZERS, AND SERVICE PROVIDERS By the Immigration Advocates Network and Idealware THE FIELD GUIDE TO SOFTWARE FOR NONPROFIT IMMIGRATION ADVOCATES, ORGANIZERS, AND SERVICE PROVIDERS By the Immigration Advocates Network and Idealware THE FIELD GUIDE TO SOFTWARE FOREWORD Welcome, The Field Guide to Software is a joint effort between the Immigration Advocates Network and Idealware. Through straightforward overviews, it helps pinpoint the types of software that might be useful for the needs of nonprofit immigration advocates, organizers, and service providers and provides user- friendly summaries to demystify the possible options. It covers tried-and-true and emerging tools and technolgies, and best practices and specific aspects of nonprofit software. There’s also a section to guide you through the sometimes daunting process of choosing and implementing software. We know you have your hands full and don’t always have time to keep up with the latest information about the software that can help your organization. That’s where this guide can help. Thank you for all you do to make the world a better place. We hope this Field Guide will help you do it all just a little more easily. Matthew Burnett Karen Graham Director, Executive Director, Immigration Advocates Network Idealware iii THE FIELD GUIDE TO SOFTWARE TABLE OF CONTENTS TABLE 1. Introduction 7 • Understanding What You Need 8 • Every Organization Needs 10 2. Case Studies: Putting Tools to Use 13 • Using Technology to Expand Legal Services: Ayuda Delaware 14 • A Holistic Approach to Serving Immigrants: Benevolent Charities of Oklahoma 17 • Giving Voice to Immigrants: Idaho Coalition for Immigrants and Refugees 20 3.
    [Show full text]
  • Tihen Notes from 1971 Eagle-Beacon, P
    WICHITA STATE UNIVERSITY LIBRARIES’ DEPARTMENT OF SPECIAL COLLECTIONS Tihen Notes from 1971 Eagle-Beacon, p. 1 Dr. Edward N. Tihen (1924-1991) was an avid reader and researcher of Wichita newspapers. His notes from Wichita newspapers -- the “Tihen Notes,” as we call them -- provide an excellent starting point for further research. They present brief synopses of newspaper articles, identify the newspaper -- Eagle, Beacon or Eagle-Beacon -- in which the stories first appeared, and give exact references to the pages on which the articles are found. Microfilmed copies of these newspapers are available at the Wichita State University Libraries, the Wichita Public Library, or by interlibrary loan from the Kansas State Historical Society. TIHEN NOTES FROM 1971 WICHITA EAGLE-BEACON Wichita Eagle-Beacon Saturday, January 2, 1971 page 4B. Report of death yesterday of Kenneth W. Pringle, Sr., 79, 1102 North Ridgewood. Born January 20,1891 in Harveyville, Kansas. Came to Wichita from Alma, Kansas and was Wichita city attorney from 1931 to 1945. Survived by wife, CeCile L., a son, Kenneth W. Pringle, Jr., of Wichita, and two daughters, Mrs. Mary Alice Morozzo and Mrs. Helen Maxine Parzybok, both of Wichita. Photo. Entombment at Mission Chapel Mausoleum. Sunday, January 3, 1971 page 1B, 4B. Calendar of major events in Wichita in 1970: January 5: Board of education approved plan for integration which included closing of Dunbar and L’Ouverture schools and busing of about 2000 black children to other schools over the city. January 26: Park Board and Wichita Aeros agreed on terms for Lawrence Stadium leasing in 1971. February 5: Wichita police put their helicopter into service.
    [Show full text]
  • Business Outside the Box: Tools & Resources for Generating Business Income During Covid-19 with New Mexico Mainstreet
    BUSINESS OUTSIDE THE BOX: TOOLS & RESOURCES FOR GENERATING BUSINESS INCOME DURING COVID-19 WITH NEW MEXICO MAINSTREET April 16, 2020 Presented by NMMS Revitalization Specialists: Amy M. Barnhart, Preservation & Non-Profit Resource Development Robyne Beaubien, Promotion & Image Development NEW MEXICO MAINSTREET Engage People • Rebuild Places • Revitalize Economies New Mexico MainStreet is an asset based community economic development program. The program’s core objective is downtown revitalization and redevelopment • NM MainStreet Districts (30) • Arts & Cultural Districts (12) • Frontier & Native American Communities (28) • Historic Theaters (8) BUSINESS OUTSIDE THE BOX: TOOLS & RESOURCES FOR GENERATING BUSINESS INCOME DURING COVID-19 WITH NEW MEXICO MAINSTREET April 16, 2020 Presented by NMMS Revitalization Specialists: Amy M. Barnhart, Preservation & Non-Profit Resource Development Robyne Beaubien, Promotion & Image Development USING FACEBOOK TO SELL PRODUCTS Robyne Beaubien, NMMS Promotion & Image Development FACEBOOK TOOLS Using your FB business page to sell Using FB groups to sell Using FB live/events for showcasing & selling Using FB to sell gift cards Check out FB Blueprint for help with your business page https://www.facebook.com/business/learn FACEBOOK BUSINESS PAGE RESTAURANTS FB GROUPS TIPS FOR SALES ON BUSINESS PAGES & GROUPS Post pictures of items for sale with prices, first come, first serve via comments Post pictures of items for sale and have customers message for pricing Post items and link to an Etsy shop Do contests Cross promote on Instagram Use video, live stream, and virtual events FB LIVE, VIDEOS, AND VIRTUAL EVENTS • Record a short video highlighting your business products or services • Create a Live Event and invite people to attend To support small business owners, Raton MainStreet, the Center for Community Innovation and Raton Cash Mob invite you to participate in a series of Virtual Cash Mobs!” What is a Cash Mob? A cash mob is a group of people coordinated to meet and spend money at a local, independent business at a particular time.
    [Show full text]
  • Circumnavigating Traditional Finance CROWDFUNDING
    Circumnavigating Traditional Finance CROWDFUNDING Crowdfunding Presentation | Chris Fodor | Vienna | June 17, 2019 PART 1 Introduction What is crowdfunding? A financing method whereby money-seekers can find funding from money-givers via an electronic platform (website). Crowdfunding Presentation | Chris Fodor | Vienna | June 17, 2019 PART 1 Introduction Meet the project that raised +$250 million Crowdfunding Presentation | Chris Fodor | Vienna | June 17, 2019 PART 1 Introduction Indeed gaming is a hot category for crowdfunding Star Citizen video game Launched on Kickstarter in 2012. Over the years raised over $250 million. Not bad, eh? Crowdfunding Presentation | Chris Fodor | Vienna | June 17, 2019 PART 1 Introduction But you also get brilliant ideas such as this... Hare-brained ideas? Do not reach their funding goals, or are suspended by the platform owners. Shown here: Paul, the sexiest smartphone charger on the planet… raised only $2,160 out of target $8,000. Crowdfunding Presentation | Chris Fodor | Vienna | June 17, 2019 PART 1 Introduction Dulcis in fondo... Crowdfunding Presentation | Chris Fodor | Vienna | June 17, 2019 PART 1 Introduction The platform links the seekers and the givers Crowdfunding Presentation | Chris Fodor | Vienna | June 17, 2019 PART 1 Introduction In crowdfinance, two planets co-habit ▸ ▸ ▸ ▸ Donations: the majority of “raises”. No reimbursement required. Often in-kind gifts (called rewards). Examples: Indiegogo, KickStarter, etc. ▸ Loans: crowdlending; still the minority, but growing. Money-givers are reimbursed for their loans, sometimes even with interest. Examples: Conda, Kiva, etc. Crowdfunding Presentation | Chris Fodor | Vienna | June 17, 2019 PART 1 Introduction An old concept, revived by the Internet Pre-Internet: books via subscription plans; war bonds; Auguste Comte Internet era 1997 - Music - Marillion tour - $60,000 1997 - Film - Mark Kines - $125,000 2002 - Software - Free Blender graphics - Euro 100,000 Companies launched: 2001 - ArtistShare; 2005 - Kiva; 2008 - IndieGoGo; 2009 - KickStarter; 2019 - GoFundMe, etc.
    [Show full text]
  • The Kiva Rochester Team Presents: a Guide to Kiva Rochester Small Business Loans a Guide to Kiva Rochester Small Business Loans
    The Kiva Rochester Team presents: A Guide to Kiva Rochester Small Business Loans A Guide to Kiva Rochester Small Business Loans Mayor's Office of Community Wealth Building City Hall 30 Church Street Room 221B Rochester, NY 14614 For More Information Like: facebook.com/KivaRoc Follow: instagram.com/kivaroc Email: [email protected] Visit: cityofrochester.gov/KivaRoc https://www.kivaushub.org/rochester Visit: kiva.org/borrow Table of Contents Page 1-10 General Information Page 11-24 The Kiva Application Page 25-34 Fundraising & Repaying Page 35-39 Resources Dear Rochester Entrepreneurs, In 2016, I started the Kiva Rochester program with one objective: to give more Rochesterians a shot at the American Dream. I am working to ensure that every resident has the opportunity to better their lives through entrepreneurship. However, I know that many entrepreneurs are unable to access capital from banks, creating barriers for people to pursue their dreams of business ownership. Kiva Rochester is increasing opportunities for business ownership by providing local entrepreneurs with access to Kiva’s 0% interest crowdfunded loans of up to $10,000. The program is paving the way for residents in every corner of our city to launch and grow their businesses and to become employers, not just employees. The City is committed to ensuring that all aspiring entrepreneurs in Rochester have the opportunity to succeed and to access the working capital they need. So far, over $700,000 has been invested into 100+ small businesses right here in the city of Rochester. These businesses are transforming our neighborhoods, creating jobs, and making Rochester a more dynamic city.
    [Show full text]