Vittana
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Vittana/Africa: Bringing Student Loans to Africa
“10 Most Innovative Companies in Finance”
“next new thing in charity”
voted by 1.7M readers as “#1 game-changer in philanthropy”
Building a world where anyone can go to college
Kushal Chakrabarti
http://twitter.com/[email protected]
Co-Founder and CEO, Vittana
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Young organization with bit of success and a big vision
Vittana/Africa: Bringing Student Loans to Africa
“10 Most Innovative Companies in Finance”
“next new thing in charity”
voted by 1.7M readers as “#1 game-changer
in philanthropy”
“a hotbed of innovation”
“Superbien.”
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=
$0
$5
$10
$15
$20
282% income change
97% repayment rate
mom as co-signer
+
vocational school
+
specific loan structure
+
...
+
collaborative product development (3-9 months)
+
ground teams
Part 1: Building the Vittana ground model of education microcredit
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Part 2: Anyone with $25 can help a student finish school on vittana.org
$100,000
$200,000
$300,000
$400,000
May 2009 Aug 2009 Nov 2009 Feb 2010 May 2010 Aug 2010
Stud
ent L
oan
Port
folio
at V
ittan
a M
FIs
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I want to take you on a journey...
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Three years ago...
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NYT: Father spending 30% of income on son’s education
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Took as challenge to learn as much about microcredit, education
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SSIR: “Reimagining Microfinance,” June 2008
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#1 cause of drop-outs in many emerging countries: Financial cost
70+% of drop-outs due to financial cost
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#1 increase in spending by 1st-time MF borrowers: Education
0%
25%
50%
75%
100%
Food Fuel Electricity Clothing Education Health
Incr
ease
in S
pend
ing
by 1
st-T
ime
Bor
row
ers
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Why Not?
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$700 isn’t that much money in the grand scheme of things
$27$700 ~
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Catch-22: No track record => no investment => no track record
Knowledge Investment
Track Record
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“Last mile of education”: 282% average income change
282% average income change
$0
$5
$10
$15
$20
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Mission: Jumpstart global ecosystem of education finance
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1 person can’t invest $50M, but 1M people can invest $50.
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Vittana loan model getting better and better
mom as co-signer
+
vocational school
+
specific loan structure
+
...
=
282% income change
97% repayment rate
+
collaborative product development
+
ground teams
$0
$5
$10
$15
$20
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3 years ago: Just open up a marketplace
≠
282% income change
97% repayment rate
a Vittana marketplace for education funding
$0
$5
$10
$15
$20
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1 year ago: try to “teach” MFIs
282% income change
97% repayment rate
≠
mom as co-signer
+
vocational school
+
specific loan structure
+
...
+
shallow product support $0
$5
$10
$15
$20
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Today: Work directly with MFIs for 3-9 months + first ground teams
=
282% income change
97% repayment rate
mom as co-signer
+
vocational school
+
specific loan structure
+
...
+
collaborative product development (3-9 months)
+
ground teams
$0
$5
$10
$15
$20
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Holy grail: repayment probability of female, 20-25, Peru, nurse?
segment expected repayment
femaleLima, Peru
nursing20-25 age bracket
<2 kids
98.3%
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Demonstration effect: Jumpstart global ecosystem of education finance
1. What if you could rigorously demonstrate MFI- and investor-side financial viability?
2. What if you could causatively, statistically significantly demonstrate impact?
3. What happens then?
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How do you create meaning with money in education?
Risk-tolerant, patient capital
+
A new idea
+
Heavy-duty ground program development
=Meaning
+
Possibility
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First non-Vittana funder of education micro-loans — Kiva
$100,000
$200,000
$300,000
$400,000
May 2009 Aug 2009 Nov 2009 Feb 2010 May 2010 Aug 2010
Stud
ent L
oan
Port
folio
at V
ittan
a M
FIs
Total Vittana
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Nardith needed $700 to attend nursing school
Nardith TorresNursePeru
Needed
$700http://www.vittana.org/students/15
mom in NorwayMBA student in Bostonbanker in NYCStanford alum in Las Vegasentrepreneur in Seattle...
and 14 others
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Not just money, but completely changes reality of choice