How Kiva Zip Plans to Draw New Lenders to Its Online Platform
June 17, 2015 Category: MethodEarlier this month, Kiva Zip Philadelphia held a pop-up event at Dilworth Park that connected local entrepreneurs with investors. The event was a part of an ongoing effort to leverage the online lending platform for small business development in city.
The Kiva Zip platform, which was created by a San Francisco-based company, works like other online crowdfunding platforms in that it allows people to give their money online. The difference is that it facilitates loans rather than donations. Recipients have to repay the money, but they do so on flexible terms and with no interest.
In Philadelphia, 55 loans worth around $230,000 have gone to Philly-based businesses, according to Alyssa Thomas, manager of Kiva Zip Philadelphia. Another $38,000 has been committed to the four businesses currently fundraising on the platform: Philly Bread, Mushmina, Miss Mahogany and This AmaZn Life.
A total of 3,873 lenders have contributed so far. Thomas noted that the typical investment is $25, although some give much larger amounts.
The goal of the pop-up event, Thomas said, was to raise awareness about the businesses seeking loans and to attract more lenders to the platform. She added that she hopes to add an additional 1,000 lenders from Philadelphia by the end of the year.
One way she plans to do this is by bringing the fundraising campaigns out into the public, rather than being siloed on the website. Though not set in stone, Thomas said she hopes to hold a public event each quarter.
“I think it’s really exciting for people to actually be able to go out and meet the entrepreneurs,” she said. “I can convince people to sign up, but it’s way more impactful for them actually meet someone who could benefit from the program.”
Image via Kate Privitera for the City of Philadelphia