Kiva's Pilot United States ExpansionJuly 15, 2009

IntroductionAgenda for this Community Conference Call

There are 2 purposes to this call:• To share with the Kiva community some of the data we’ve collected around the

U.S. pilot• To receive feedback directly from the Kiva community

Agenda:1. Introduction2. Summary of what we have learned since June 103. Background4. What happened5. Detail of what we have learned since June 106. Your feedback

Note: Kiva will post a response to the Kiva Blog after on July 23.

SummaryWhat we have learned since June 10

• The Kiva community is divided in opinion about the U.S. pilot• The U.S. pilot has attracted more “new money”• The U.S. pilot drove an increase in new-user sign-up• The U.S. pilot attracted new lenders for all countries• U.S. Focused Lenders also lent to developing countries• “Core Kiva Lenders” continued to lend more• The donation rate has continued to be stable• U.S. loans funding rate is slightly above average

BackgroundKiva’s 2009 Growth Strategy

Each year Kiva sets internal goals for the number of new Field Partners and countries to be added to the global portfolio.

2009: • Approximately 30 New Partners planned

• 6 New Countries

• Total loans funded target of $60 million

• Community Conference Calls have highlighted interest in certain new countries

BackgroundJune Portfolio Growth

• 8 New Kiva Field Partners added– 2 in the United States– 6 in other countries

• 3 New countries added in June– United States– Kyrgyzstan– Liberia

• Kiva re-entered Ecuador

BackgroundGlobal Portfolio

• June’s growth increased Kiva’s global portfolio to 48 countries• Kiva’s global portfolio enforces limits to the total share held by any one country, to ensure a

balanced porfolio and minimize risk– For example, for the U.S. pilot launch, all U.S. loans currently can not exceed 5% of the global portfolio

• Country limits are enforced by Field Partner limits– ACCION USA has a total outstanding loans limit of $550k– Opportunity Fund has a total outstanding loans limit of $250k

Cambodia (14.3%)

Tajikistan (8.9%)

United States 1.2%

What happenedJune 10, 2009: First U.S. loans posted on Kiva.org

• 2 new U.S. Field Partners were added to the portfolio– Accion USA (New York)– Opportunity Fund (Bay Area)

• 39 loans to U.S. borrowers were posted to the Kiva website in June• The total of loans to U.S. borrowers in June was $224,775• The average loan size of June U.S. loans was $5,763• All loans part of the initial launch were completely funded within 18

days

What happenedFeedback from community

• There have been mixed reactions coming from the Kiva lender community

So far the US launch poll has resulted in 48% yes and 44% no, with 9% not sure

“I feel somewhat betrayed by the introduction of loans to US entrepreneurs”

“I do not believe loans to US people follows the intent of Kiva’s mission statement”

“you have changed the mission of Kiva from one WE ALL agreed on when we joined, to one that adds a totally new dimension, stress on resources and competition between the loans.”

“Keep up your wonderful work....Kiva: Loans That Change Lives...that's what we are all doing, isn't it?”

“I don't think that a struggling small-scale entrepreneur is more worthy because she lives in America, but neither is she less worthy”

“Thanks for giving us the choice to lend or to not lend to US entrepreneurs.”

What happenedJune was a record month for Kiva

4.6% of loans raised in June on the Kiva site were for US borrowers

Excluding the U.S. loans, more loans were made to developing world entrepreneurs in June, than ever before: $4,682,025

Africa

Asia

Eastern Europe

Middle EastLat-AmUSA

Total funded: $4,640,475 Total funded: $4,906,800Excluding US: $4,682,025

US loans $224,775

What we have learnedThe U.S. pilot has attracted more “new money”

• Kiva Loans are funded by new money loaned, or by re-cycling repaid Kiva Credit• However the availability of US loans is a source for bringing more people and more money

from the same people

Since the launch, average daily deposits (“new money”) over one month have been 18% higher than the average for four months prior

Pre-launch average: $51.4k

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Post-launch average: $60.8k

What we have learnedThe U.S. pilot drove an increase in new-user sign-up

• New user sign-up tends to be higher at the start of the year but stays pretty consistent from March to July

• In 2009 there has been an increase in sign-ups in the month post-U.S.-launch as compared to the three months leading up to it

2009 new users

2008 new users

• Every month Kiva has about 14,693 new users sign-up on the Kiva website• The one month period after launching in the USA saw a new-user sign-up of 20,380

US launch

2009: 14.7k / month2008: 13.2k / month

2009: 20.4k (+39%)2008: 12.3k (-6%)

What we have learnedThe U.S. pilot attracted new lenders for all countries

• During the first week of the USA launch there was an unprecedented sharp increase in new lenders joining the Kiva website

• On average, 479 new users signed up per day, in the 3 months before the U.S. pilot launch• On June 10 and 11, a total of 4,795 new Kiva users signed up.• Of the 4,795 new users on June 10 and June 11, 72% of loans they made in the next 30 days

were to developing country entrepreneurs

Africa

Asia

Eastern Europe

Middle EastLat-AmUSA

Note: By focusing on new lenders who signed up June 10 and June 11, we can identify users who signed up as a result of visibility of the U.S. pilot launch.

What we have learnedU.S. Focused Lenders also lent to developing countries

• There were 854 Kiva Lenders who made their first Kiva Loan (in the 30 days following the U.S. pilot launch), to a U.S. entrepreneur.

• 26% of the loans these new lenders made in the next 30 days, were to developing country entrepreneurs.

• There is a tendency for any Kiva lender, including the U.S. drawn lenders, to diversify and also make loans to other people who may not fit the primary reason they came to the website

Out of all lenders in this group, in the first month post-US-launch:- 14% made loans to at least one other country- 6% made loans to at least five other countriesAfrica

Asia

Eastern Europe

Middle EastLat-AmUSA

What we have learned“Core Kiva Lenders” continued to lend more

• A “Core Kiva Lender” is a lender who:– Lends at least 100 dollars every month– Has consistently loaned every month for the last 6 months

• There are 1487 ”Core Kiva Lenders”. These lenders continued to increase their lending in the month post U.S. pilot launch

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What we have learnedThe donation rate has continued to be stable

• Kiva measures donations made to Kiva relative to total loans made on the website. (For example, if in one day $100,000 of loans were made, and $6,000 donated to Kiva, we measure this as a donation rate of 6%)

• It is important for Kiva’s long-term viability to continue to see stability and growth in its donations from lenders

The rate of donation has been going up and down in recent time. In the month post U.S. pilot launch it was a little higher than the month before the U.S. launch

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What we have learnedU.S. loans funding rate is slightly above average

The USA loans fund faster than about two-thirds of the Kiva portfolio

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FeedbackWe want to hear from you!

To share your feedback and comments, please use the web conference system to “Raise Your Hand”

(Click on the “Raise Your Hand” button on this screen, and use the chat feature to send the moderator your phone number so that your phone line can be unmuted. Your phone number will only be visible by the moderator.)

Appendix 1: Comments from Community poll‘Do you support Kiva's decision to allow loan requests from the US?’

• What this tells us: Which themes are most important to lenders• What this doesn’t tell us: How each theme relates to someone’s overall opinion of whether or

not they support the US launch. For example,– someone could not support the launch, yet still think lender choice is important– someone could support the US launch, but also be concerned about brand dilution

Theme Number of comments

Lender choice is important 87

Poverty is relative 62

Brand dilution 49

Charity begins at home 39

US not truly impoverished 35

Stealing from the developing world 28

Creativity within Kiva is important 10

Kiva in US won’t be successful (b/c default rates, loan amounts too high)

6

Goes against capitalism (?) 3