A Very Simple Idea

That the poorest people in the world can be productive members of the global economy. And to do it we need you to take a chance!

All you have to do is "lend" a little money to our entrepreneur test-group. They are poor people in Nepal and Uganda, earning ~US$50/month, and many small loans together will be enough to start them in business - a business that is socially useful as well as profitable. If they do manage to repay the money, then we have the basis for a global business with 1.6bn potential customers - and you will have the option of converting your loan to an investment before anyone else does. The catch is that if the business is not profitable, then we don't expect them to repay the loan.

To begin with, you may like to watch a talk I gave a few months ago (click here, or see the small video box on the right) at an Ignite event. It explains my belief that technology alone is not the solution to the world's problems. The problems of the developing world are largely due to top-down systems that seek to impose solutions, instead of enabling people to use their own talents and skills. The aid agencies are a part of this problem, and it's a system that also encourages corruption. We need better systems.

21st Century Alchemy

Alchemy is the ancient belief that worthless materials can be magically transformed to gold, if you can just figure out how to do it. Many people devoted their lives to the idea that you can get money for nothing!

We don't believe in magic. But we do believe in science, systems-thinking, applied economics, and technology. Advanced technologies and thinking make it possible for us to do things that seems like magic, but first we have to embrace new ideas and try new things.

yes but....

Why don't you use Kiva or Kickstarter?

If I hear this once more, I will scream! I did my homework!

Kickstarter first, from their rules:

To be eligible to start a Kickstarter project, you need to satisfy the requirements of Amazon Payments:

Be a permanent US resident and at least 18 years of age with a Social Security Number (or EIN), a US bank account, US address, US state-issued ID (driver’s license), and major US credit or debit card.

And from the guidelines:

• No charity or cause funding. Examples of prohibited use include raising money for the Red Cross, funding an awareness campaign, funding a scholarship, or donating a portion of funds raised on Kickstarter to a charity or cause.
• Rewards, not financial incentives. The Kickstarter economy is based on the offering of rewards – copies of the work, limited editions, fun experiences. Offering financial incentives, such as ownership, financial returns (for example, a share of profits), or repayment (loans) is prohibited.

Kiva is a little different, in that they will work with people in other countries. However, they also have rules which are not kind to start-ups. Their minimum requirements are:

Serve at least 1,000 active borrowers with microfinance services. (Not a requirement for U.S. partners.)

Have a history (at least 2-3 years) of lending to poor, excluded, and/or vulnerable people for the purpose of alleviating poverty or reducing vulnerability.

Be registered as a legal entity in its country of operation.

Have at least 1 year of financial audits.

We also prefer an MFI have a profile on the MIX Market (www.mixmarket.org).

Both of these organisations have rules for the way they do things, and as an entrepreneur I don't believe in complaining about the way things are. I see a problem, and I'm trying to create a solution. Your help is appreciated, and advice is always welcome, but please bear in mind that this is a new project with no track record and no 'traction.' I'm not in a position right now to take this to Acumen, Ashoka, or any other investor or funding source. I'm at the pre-investment stage, gladly.

If you know anyone who will give money to a business that is currently just an idea, please introduce them. In the meantime, I'm busy bootstrapping! Thanks.