KIVA

I am engaged in venture capital in Sweden, both as investor and as business coach. But I have also invested in 5 aspiring entrepreneurs in third world countries through KIVA, an internet based micro-lending organization that since the start in 2005 has financed some 30 000 entrepreneurs by small ($25 and up) loans from more than 130 000 people like me from all over the world.

KIVA is an example of something that could not be done without internet and the support from online payment service PayPal, Google, Yahoo, Microsoft, MySpace and other partners. The web site is a school example of building an engaged community with lots of smart tools for networking between the lender and the entrepreneurs and also between lenders.

See how it works in this New York Times video story, where a reporter goes to Kabul in Afganistan to check up on his investment in a local bakery.
Exercise: first read this blog text and about KIVA on their web site.
Then watch this short video.
Compare the two experiences!
My point: video is a very powerful medium for explaining things and creating feelings for people and causes.

Also, listen to this excellent interview with the KIVA co-founder Jessica Jackley Flannery, from the Phorecast podcast.

And, if you want the entrepreneur’s look at this, check out Guy Kawasaki’s blog post “The six lessons of KIVA” (Guy is the father of the term “evangelism” for marketing and brand building).

KIVA is enabling thousands of people to improve their lives by doing everything right:

1. Creating a great user experience by connecting people globally on their site.
2. Keeping the lenders updated about the progress of each individual that they have lent money to.
3. Having a clear, easy-to-understand business model (a voluntary $2.50 or 10% from the lender for every loan).
4. Using evangelism to recruit lenders, not spending a dollar on marketing.
5. Inviting big corporate sponsors to help out with their services to create win-win.

                 

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