2015 annual review

Althea, Gilliard FarmsBrunswick, GA

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

$0k

$250k

Household Income

$129k

$207k

$20k $21k

Top 5% of households

+61%Bottom 20%

+7%

2014 dollars; Source: census.gov

Bottom quintile

Second quintile

Third quintile

Fourth quintile

Top quintile

-$50k

$750k

Household Net Worth

2000

2011

-566% -49%-7%

+10%

+11%

2011 dollars; Source: census.gov

Income and Wealth Inequality are on the rise in America.

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

$0k

$250k

Household Income

$129k

$207k

$20k $21k

Top 5% of households

+61%Bottom 20%

+7%

2014 dollars; Source: census.gov

Bottom quintile

Second quintile

Third quintile

Fourth quintile

Top quintile

-$50k

$750k

Household Net Worth

2000

2011

-566% -49%-7%

+10%

+11%

2011 dollars; Source: census.gov

Income and Wealth Inequality are on the rise in America.

And we believe Small Businesses can reverse this trend.

“That's the beauty of entrepreneurship: If a new company is formed, it hires people and creates jobs in its community. As it grows, people’s opportunities multiply and wages rise. Inequality diminishes because people get pulled into good jobs.

Today, two-thirds of new net jobs in the U.S. are being created by new firms that are less than five years old. If you want to ease income inequality, what you want are more new firms starting up and seeking employees.”

Andrew Yang, CEOVenture for America Marc, SF Laser

Oakland, CA

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

6%

8%

10%

12%

14%

16%

But Small Businesses & Entrepreneurship are under threat.

Over the last few years, firm exit rate has exceeded firm entry rate

for the first time in decades.

Firm exit rate

Firm entry rate

U.S. firm entry and exit rate by year

Source: U.S. Census Bureau; The Washington Post

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 20110.5

1.0

1.5

Because it’s increasingly hard for them to Access Capital.

Large business loans, +36%

Change in the Volume of Small Business Loans

Source: Institute for Local Self-Reliance; Federal Reserve Data. Small business loans are less than $1M; Micro business loans are less than $100K

Small business loans, -14%

Micro business loans, -33%

That’s where Kiva Zip comes in!

Esteban and Carolina, NoDá Design StudioBrooklyn, NY

In 2015, Adolis borrowed $10,000 from 99 lenders to buy a new baking oven and

refrigerator, and open her café Lovely Rita in Manhattan.

“I would like to thank all of you very much!

Family, friends and strangers who supported me by funding my loan, but also thank you for your amazingly warm

wishes and encouragement!

I consider this a very big contribution to my

success!”

Adolis, Lovely RitaManhattan, NY

In 2015, Amine borrowed $8,250 from 107 lenders to

invest in new equipment and marketing materials for his

restaurant in San Francisco’s Tenderloin district.

“Thank you guys for your support. If you get the chance, please

come check out my restaurant. It would be great to meet you.”

Amine, Soul Food CitySan Francisco, CA

In 2015, Bryce borrowed $10,000 from 145 lenders to expand his certified organic

greenhouse and install a renewable fuel heating

system on his family farm.

“Best wishes on the growth and development of the farm”,

Kenneth, Lender, Morrisville, NC

Bryce, Lazy Eight Stock FarmPaint Lick, KY

In 2015, 39,014 people crowdfunded $4,715,325of loans to 811 U.S. small business owners looking

to make a positive impact in their communities.

Amy, Building HuggerDetroit, MI

We were proud of our growth rate in 2015…

2011 2012 2013 2014 2015 2016 target$0M

$3M

$6M

$9M

$0.0M$0.4M

$1.6M

$2.7M

$4.7M

$8.6M

Kiva Zip fully funded loan volume by year

87 356 578 811 1,5006 loans made

+351%

+67%

+73%

…And proud of a few other rates too.

90% funding success rate

89% Loan repay-ment rate

0% interest rate

Martha, Words on Woodcuts PressPhiladelphia, PA

We continued to iterate on our “Social Underwriting”…

Antisocial underwriting

Social underwriting

Lending decisions are made based on financial data – the strength of a borrower’s credit score, collateral and cashflows.

Lending decisions are made based on social data – the strength of a borrower’s character, or their standing in their community.

Loans (and underwriting decisions) are made for the purpose of minimizing risk and maximizing profit.

Loans (and underwriting decisions) are made for the purpose of having a positive social impact.

Lending decisions are autocratically made by a single, centralized, objective and inflexible algorithm.

Lending decisions are democratically made by a crowd of millions of people – each with their own subjective interests, passions and reasons for lending.

…which allowed us expand economic opportunities for all.

Caucasian

African American

Hispanic

Asian

BiracialPacific Islander

Kiva Zip 2015 loans by ethnicity

More than half of our loans went to ethnic minorities in 2015, and more than half went to women small business owners…

…This compares to 36% and 15%, respectively, for traditional retail bank loans.

Source: Kiva Zip data, PayPal Working Capital study

We launched Kiva City Milwaukee in February…

Mayor Tom Barrett launches Kiva City Milwaukee at Milwaukee City Hall

George Mosher William G. and Christie A. Krugler

…Kiva City San Francisco in October…

Kiva President Premal Shah and Kiva Zip borrower Anna Tvelova launch Kiva City San Francisco

inside SF City Hall

…Kiva City New York in December…

Bill Clinton launches Kiva City New York in December 2015

…and got some great press coverage as a result.

Our impact is made possible by our Trustee partners…

1) NYC Small Business Solutions Centers, New York, NY

2) Tenderloin Economic Development Project, San Francisco, CA

3) The Wisconsin Women’s Business Initiative Corporation, Milwaukee, WI

4) Union Kitchen, Washington, DC

5) The City of Oakland, Oakland, CA

6) Institute for Veterans and Military Families, Syracuse, NY

7) Mission Economic Development Agency, San Francisco, CA

8) Northern Virginia Family Service, Falls Church, VA

9) Build Institute, Detroit, MI

10) Centro Community Partners, Oakland, CA

Mission Economic Development Agency,

San Francisco, CA

We couldn’t fit all 700 on one slide, but here are the Top 10:

…by our wonderful team, many of whom are volunteers…

…and by our lenders, whose generosity inspire us every day.

To everyone in the Kiva Zip community, thank you for making 2015

such a wonderful year.

We hope we’ll see you again in 2016!

Scott, Fox FarmRiverside, CA

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