1 / 27

Matt Holton Matt Kim Erin Malone Claire Williams

Matt Holton Matt Kim Erin Malone Claire Williams. Small business is America. 3,624,614 establishments with 0-4 employees in the United States Annual payroll of more than $232 billion. Small business is Oregon. More than 316,000 microenterprises in Oregon

natalie
Download Presentation

Matt Holton Matt Kim Erin Malone Claire Williams

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Matt Holton Matt Kim Erin Malone Claire Williams

  2. Small business is America. 3,624,614 establishments with 0-4 employees in the United States Annual payroll of more than $232 billion

  3. Small business is Oregon. More than 316,000 microenterprises in Oregon 86% of total businesses in the state Small business is Lane County. Approx. 180,000 people in Lane County employed by microenterprises 32,000 microenterprises in the area

  4. What’s broken? Small businesses need capital Communities need local development as recession buffers Inefficiencies with the way small business get access to capital

  5. For example. . .

  6. Best option. Microenterprise Development Organizations (MDOs) assist small businesses start by providing training, technical assistance and/or small amounts of capital. But. . . Reliant on grant funding Limited Capacity

  7. Opportunity comes calling. Phones calls from community members interested in investing locally Default rates on microloans is low, due to high level of MDO support Idea … Develop a way to connect small business owners to investors while drawing on the expertise and assistance provided by MDOs.

  8. P2P lending. P2P lending connects lenders with borrowers without the need for banks, credit unions, or other financial vehicles.

  9. Existing P2P landscape.

  10. Problems with existing platforms. Not local enough If local, not scalable Fund enterprises overseas Risk based on traditional assessment methods No support network

  11. What about us? N2N Capital is a P2P lending platform connecting individual community lenders with local small businesses in need of capital. How we’re different. Draw upon MDOs for support Access limited by location: city/county/region Risk assessment based on community impact Community-focused, allows people to invest where they live Relationship-driven, emphasis on building interpersonal relationships High degree of business development support

  12. How it works. Meet Nancy Brown.

  13. Our model. Relationship with MDOs Local individual investors Electronic platform Geographically restricted Membership-based Two types of loans $500-$2,500 short term (1 year) $2,500-$35,000 (3 years) Loans above $5,000 can have multiple investors Each investor must enter with $1,000 Think Prosper/LinkedIn mashup with a touch of Groupon.

  14. What you see.

  15. Source of capital. Rise of Angel Investors Growth of sharing economy Interest in community investment

  16. Risk mitigation. MDO support Personal relationship between lender and borrower Traditional assessments + performance + community assessment Membership required Numerous loan offerings

  17. Source of return. Financial Strengthen the social fabric community Employment, wealth creation, education Increase resiliency of community Decrease vulnerability to exogenous shock Multiplier effect Strength of local businesses

  18. (We stole this from )

  19. The big picture. Community Resilience Financial Literacy $ Multiplier Effects $ Social Fabric

  20. N2N by the numbers.

  21. Why Lane County? Size - Large enough to support businesses, - Small enough to create strong sense of community. Demand - # of small businesses Lack of alternatives - Access to loans Interested Investors

  22. Scalable. 74 Cities in US with population 200,000 to 500,000 Platform model easy to replicate MDOs exist everywhere Need for capital ubiquitous Can be limited to a city or expanded to a region (as population dictates)

  23. The big question. Regulatory implications.

  24. Lastly. Macro trends toward localization and sharing economies Solves problems with existing P2P Platforms Link borrowers + support + capital

  25. The big picture. Community Resilience Financial Literacy $ Multiplier Effects $ Social Fabric

  26. Sources/Inspiration. • CarstenHenningsen, Portfolio 21 & Upstream 21 • Shawn Winkler-Rios, eDev • Valerie Plummer, Oregon Microenterprise Network • John Sechrest, Northwest Innovation Resource Center • Beth Hjelm, UO SAC Professor • Bruce Hecht, Oregon Natural Step • Michael Shuman, author of Small-Mart Revolution • Michele Henney, UO Accounting Professor • Ron Williams, Attorney • Drew Tulchin, Social Enterprise Associates

  27. The Big Picture. Community resilience Financial Literacy Social Fabric $ Multiplier Effects $

More Related