I like that Kiva exists. I think microfunding is a great idea. I don't think you can assess whether an MFI has been exhibitng predatory practices (like Simran mentions) based on their repayment success rates.
On Thu, Nov 3, 2011 at 8:01 AM, Andrew Sellen <and...@startmusic.com.au>wrote: > > Hi Simran, > > Just want to respond regarding your comments on Kiva as I've worked > previously in microfinance. > > Yes, Kiva have local microfinance institutions (MFIs) that administer > the loans but I suggest this is a good thing. Lenders can check the > record of the MFI before lending, and many of them have repayment > success rates >98% > > They do charge interest at a level for the programs to be sustainable, > but it's a much better alternative for the loan recipient than loan > sharks or being stuck with no job or capital. > > My wife and I put $50 into Kiva a couple of years ago and because of > recycling, without adding extra in we've been able to contribute $25 > to a project 5 times. So far no defaults. > > Regards, > Andrew > > > On Nov 2, 2:55 pm, simran <sim...@dn.gs> wrote: > > Hi All, > > > > In the spirit of sharing ideas (because their value is naught unless > > executed, and executed well) - here's a thought i had outside the shower > > this morning :) > > > > The crowd funding for startups space seems to be in it's infancy to me. > > There have been crowd funding innovators from more than half a decade > ago, > > like c4 and kiva (in the micro-financing fund for "charity" type of > space), > > and there are a few now in the commercial space - crowd funding sites > like > > appbackr.com - but they are in their infancy. > > > > I say infancy, because the example i am about to give, seems to be > > reflective of how many of them operate. > > > > The example being: one of my friends placed money requirements up there > > based on an idea (did not have the app in beta, just the idea), and > raised > > just under AUD $20k. Upon raising it, he met some of the people from > > appbackr to get an idea of how he should spend the money, and there was > no > > framework, the answer was the equivalent of "spend it however you like". > > > > Now, my theory is that when you give to kiva (which i have since learned > by > > the way use very dodgy local agents who charge 30-80% interest locally) > > etc, you are more or less "giving the money in the frame of mind of > hoping > > to do good", you don't think of returns, as, even when you get your money > > back, it's the same amount... you never gain because of the profit of the > > business you helped fund. > > > > However, when you are backing a commercial play, you expect returns, you > > expect a certain level of professionalism... and i have not found a crowd > > funding sites yet that validates the people you fund and mentors/manages > > them and provides you feedback like a public company would do to a > > shareholder (do they exist? and are they any good?) > > > > So, in essence, imagine: > > > > * You put in $100 towards business BizY > > * The site you commit the money via, promised you: > > => An excellently uniform description with KPI's for the next 3/6/12 > > months > > => They have met the people who you are funding > > => They have a proven track record in the industry > > => The promise to provide you a monthly standardised update on exactly > > how the business is progressing (vs the KPI's in particular) > > > > In essence, there is the "funded" (team with idea/execution), the "board" > > (experts), and the "shareholder" (you). > > > > The board takes say approx 5% of the business and only benefits if the > > funded/shareholders benefit. They are also required to ensure > shareholders > > are kept up to date with their investment. > > > > The board can additionally only take a "management fee" iff the business > > starts being cashflow positive (and will be within a defined fixed > range). > > > > The value is of course: > > > > * For the Funded: > > o Funds > > o Board of "experts" > > > > * For the Board: > > o Stake in the company > > o Help a business navigate to great success > > > > * For the Shareholders: > > o Transparent and frequent communication > > o Stake in company > > > > PushStart (and i'm taking the liberty to mention their name without any > > contact with them, other than i registered as a mentor a couple of weeks > > ago, but have not yet had any other personal interaction with anyone) are > > in a prime position to start as the "mentors" i presume are effectively > > like a board right now (albeit possibly without any powers?; in my case, > > they would have "some" powers)... however, the opportunity is there for > any > > to grab... i'd love to grab it myself... PushStart, anyone else... > > interested in working on this together? > > > > Blatent plug for myself... i've just come back after a few years in India > > (learned at lot, which is another way of saying, i gave it a shot with > > everything [again], and have gained much wisdom (actually no... i'm still > > gung-ho about everything :) but i am consulting in the > > web/mobile/comp-security space, and have started a consultancy - > http://actioConsulting.com/- and forced my friends to give me good > > testimonials here:http://linkedin.com/in/simrang:) > > > > simran :) > > -- > You received this message because you are subscribed to the Silicon Beach > Australia mailing list. Vist http://siliconbeachaustralia.org for more > > Forum rules > 1) No lurkers! It is expected that you introduce yourself. > 2) No jobs postings. You can use http://siliconbeachaustralia.org/jobs > > > To post to this group, send email to > silicon-beach-australia@googlegroups.com > To unsubscribe from this group, send email to > silicon-beach-australia+unsubscr...@googlegroups.com > For more options, visit this group at > http://groups.google.com/group/silicon-beach-australia?hl=en?hl=en > -- You received this message because you are subscribed to the Silicon Beach Australia mailing list. Vist http://siliconbeachaustralia.org for more Forum rules 1) No lurkers! It is expected that you introduce yourself. 2) No jobs postings. You can use http://siliconbeachaustralia.org/jobs To post to this group, send email to silicon-beach-australia@googlegroups.com To unsubscribe from this group, send email to silicon-beach-australia+unsubscr...@googlegroups.com For more options, visit this group at http://groups.google.com/group/silicon-beach-australia?hl=en?hl=en
