Presentation on theme: "Matt Holton Matt Kim Erin Malone Claire Williams."— Presentation transcript:
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 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
What’s broken? Small businesses need capital Communities need local development as recession buffers Inefficiencies with the way small business get access to capital
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
Opportunity comes calling. Develop a way to connect small business owners to investors while drawing on the expertise and assistance provided by MDOs. Phones calls from community members interested in investing locally Idea … Default rates on microloans is low, due to high level of MDO support
P2P lending. P2P lending connects lenders with borrowers without the need for banks, credit unions, or other financial vehicles.
Problems with existing platforms. Not local enough If local, not scalable Fund enterprises overseas Risk based on traditional assessment methods No support network
What about us? N2N Capital is a P2P lending platform connecting individual community lenders with local small businesses in need of capital. 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 How we’re different.
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.
Source of capital. Rise of Angel Investors Growth of sharing economy Interest in community investment
Risk mitigation. MDO support Personal relationship between lender and borrower Traditional assessments + performance + community assessment Membership required Numerous loan offerings
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
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
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)