 Well welcome to this session. This is Investing in a community at all different levels and so we have all the different asset classes and people in the community here this is Louisville, Kentucky and The fella in the middle is the fella in the middle Bryce Butler is what we're calling and what the Federal Reserve is calling the community quarterback the person in the middle who Connects the dots who sees what the need is. It's a mix of a culturally literate Merchant Bank or with a an entrepreneurial Community activist all together who pulls it all together. So Bryce tell us how you figured out How you got into this role and and what you saw as the need and what what people and forces you're pulling together so I was working at a family office and My boss basically just gave me the mandate go and figure out what the community problems are and let's think of a sustainable way To solve them and so one of the things that was identified In the areas that we were working Was the the large number of vacant and abandoned properties just came coming back and back and back in conversations And so we put together kind of this a Thesis fund if you will I raised a half a million dollars from a couple of different High-net worth individuals and I said look you're getting less than 1% in the banks right now Why don't you park your money in my bank and you can see your assets at work in the community? And we can start repurposing some of these vacant properties We can bring in high-efficiency HVAC systems actually put insulation and double-pane windows into these dilapidated homes and provide an equitable fair living condition for Impoverished communities and so it started working Our target was about a 4% return Right now we're two years in and we're projecting about a 9.5% return on our real estate alone How come it's working so much better? Well, I think I think there's a lot of other factors. So the thing that we moved into beyond The housing was we said look community problems are complex But oftentimes what we like to do is we like to say education as a solution or better housing as the solution or better jobs as a solution But really what communities need is all of the above Independently different like they're just different They're made up of different people at different talents different needs And so how do we really listen to what that community needs and provide a tailored and integrated solution that involves real estate But not just single family, but multi-family and commercial activities Micro-lending private equity new job creation and so it just kind of started to grow from and that's the community quarterback role It that it's not education. It's not housing. It's not health. It's not heating and cooling. It's all of the above It's looking at this holistic kind of thing. So The on-ramp in so many of these things has been Kiva, you know when people first started thinking about impact investing It's like have you heard of Kiva? A decade ago Premal is the president of Kiva. Talk about Kiva zip Kiva local and how you layer into what they're doing sure so a decade ago this month we started Kiva and Most people think of Kiva as a website where you can help someone halfway around the world in 2009 with the financial crisis the credit crunch People started writing in saying how I would like to lend in my own backyard We looked at the problem We noticed that for example seven out of ten small businesses here in the US that apply for a bank loan get rejected It's 8,000 rejections a day and often times. It's because it's not to beat up on the banks They look at things like credit scores cash flows And you know we wondered is there a system a new way to do it where that's based on character And so we started the program working with local micro finance institutions here in the US And then we realized you know what the small businesses here in the US while they might be financially excluded They're digitally included they get rejected from a bank loan, but they're setting up Facebook accounts So we created a separate website called Kiva zip and Kiva zip is the site where the money goes directly to the small business The small business applies online groups like Bryce's group basically help can help be digital unwrap for the small business help train them on how to access the Kiva website and The money goes directly from you via PayPal to that small business The average loan is five or ten thousand dollars in that range and it's the first rung On the credit ladder, which is you know five ten thousand dollars isn't you know enough money to really scale a lot of businesses But oftentimes it's the first yes a small business while here. It's the first yes It's the first yes when they're out there looking for capital and it comes from you know Usually hundreds of people who are financing that loan many of them who are their neighbors and the whole hope is when your neighbors invest in you then they turn into customers as well and You know really Makes these neighborhoods a bit smaller So that's that's a whole idea and how you've gotten banks involved doing Community Reinvestment Act and some foundations around it to Make a five thousand dollar loan a ten thousand dollar loan. How did you make that sale? Yeah, so for example right now last week we launched Kiva San Francisco There's about two dozen small businesses right here in the 49 square miles of San Francisco That are crowdfunding on the Kiva zip website right now in capital one Mainstream bank loves this program because hopefully this is new future client development for them So they're matching all loans from the internet community Two local small businesses here in San Francisco and the whole idea is when you know a match happens and you know In anything these are loans not donations But even in the loan context on our website it increases the rate of funding for that small business And it's really important that on crowdfunding platforms that when a small business lists themselves They get funded right away because you know the capital needs are very real. So what we imagine is a system where essentially a small business Lists himself on the Kiva platform their friends and family chip in to validate that they are indeed a legitimate small business That's the way that it's called social underwriting then they raise money from the crowds and it's matched by local banks and Ultimately as we report as we report credit scores. They become you know mainstream bank customers Yeah, right and our first employee for neighborhood economics is gonna be a Kiva's it fellow We've already got one bank that once has right a first refusal there to do that It's it's a great model. So Bryce as you look at that and you brought in Kiva And you you also did something at a mid tier beyond that for right So our director of microfinance was our second employee hired because we recognized we needed someone to help build that That solution stack to move somebody from unbankability to actual traditional financing Kiva being that first rung of that ladder. I mean, it's a very important rung for us, too It's a great way to mobilize the community in Louisville, Kentucky There's 1.3 million citizens in the MSA all of them now can become lenders supporting local business And so it's a great way to mobilize it I can't walk up to a community bank and say would you lend my money to small businesses in the community It's a really difficult proposition But through Kiva the technology platform Average citizens can now participate in the lending process and get to see their dollars at work in the community And what we've seen is we've seen people build relationships as customers. We've seen People purchasing as a business-to-business relationship emerges because they they met them on Kiva And they have now a relationship to see there They want their business to succeed so that their loan gets repaid so they can continue to support local business But we said that's not enough 5,000 10,000 is great, but oftentimes the business needs a little bit more and Banks aren't talking to businesses unless they're two years in existence. And so we built a couple of other loan pools They were privately funded to help bridge that gap between the five ten thousand dollars that a small business Desperately needs that first yes that they receive to also then talking with the traditional bank and the banks love it because banks can make Customers in two ways they can develop them or they can steal them This is a great way to develop them and in a very endearing way And so we have a another loan we have two loan pools that are the goal is to bridge them from Kiva 5,000 We have a catalyst loan. It's up to twelve thousand dollars for a business that's been in existence for less than a year And then we have a growth loan. It's up to thirty five thousand dollars for any business It's less than two years right then hopefully we can hand them off to banks right as they continue to succeed So how does that play into the next thing you brought in which was village capital and Ross? So village capital is an amazing program We partner with them through blue sky and now access on various various levels Six different programs. I've done with with Ross But Ross would probably be better better served to explain what their goal Yeah, tell us about how you fit into this local. Yeah, so system at village capital the firm I run we support entrepreneurs that are building great businesses that we think will improve the world and we We've worked in 20 communities across the US Louisville was the first community where we Started working, but we've been in places like Albuquerque and Buffalo and cities that have great pasts And a lot of them are in a hard time today But we think because of entrepreneurs have great futures and what we do in a city like Louisville is work with Entrepreneurs that are growing and building great businesses because if you care about your community The best way to determine what a community is going to look like in 25 50 years is to look at what the entrepreneurs are doing today So 50 years ago Silicon Valley. This is the greatest entrepreneurial ecosystem in the world 50 years ago This is Apple orchards 50 years ago. Detroit was the wealthiest city in the world because the car was the hot thing and Detroit Stopped investing in innovation and now Detroit is they went bankrupt a few years ago. And so what we do Is partner with people like Bryce and I think Bryce's Kevin once said we should rename Socap Just everybody do what Bryce is doing We partner with Quarterbacks like Bryce around the country to support entrepreneurs, I think if you're if you care about entrepreneurship in your community I think there are three things we see community quarterbacks doing right one is In place like Louisville people I think are more concerned with real-world impact than in New York Boston, San Francisco that the cities that are doing really well today So in Louisville we focused on food and agriculture because it's a major asset to the city It's within a day's drive of two-thirds of the population It's one of the biggest logistics ports in the world I could go on and on and on but people in Louisville get very excited in an emotional community way about being a food and agriculture hub, I think the second thing is the gains in Cities when you when you focus on community entrepreneurship the gains in cities when businesses are successful is a much more evenly dispersed innovation economy so Instagram right here in San Francisco recently acquired by Facebook for a billion dollars Twelve employees good for them good for them twelve employees and the few people invested it very very well I think businesses like Sam Tech, which is the largest employer in southeast Indiana Employees thousands of people and that that makes it I think that makes a much bigger difference to your community And then I think the final thing is what we're seeing in places like Louisville and Albuquerque and going on is a much more inclusive entrepreneurial economy so 40% of the of the entrepreneurs we work with in cities are women 30% are underrepresented minorities the average venture fund invests 5% in women 3% in underrepresented minorities and when you make entrepreneurship a community activity like you have at every level of the The chain people feel like the playing field is much more open to them. It's it's it's great to be here Yeah, and and you're at the far end. You're doing public equities and things But how does this all play into a community portfolio the way you see it? Yeah, so Prima was speaking earlier about 2009 When we look at wealth management and asset management at Chilton, we're looking at what's the very worst problem we face I think 2008 2009 we realized I think the Rauschenberg Foundation said at the best We poisoned the planet and our souls in the pursuit of wealth Okay, so that's a major You know private foundation making a statement about their mission in the world So we're thinking as wealth managers. How do we use wealth as a tool to renew both? It's a basic underlying Thesis of everything we do. What's the number one thing that's missing? from the planet Being in a state of renewal and being in a state of engagement and in our minds That's access and agency access and agency access and agency If any of you are having to be Morocco last year, I think I was blown away when Joe Biden vice-president Biden said Quoting Seamus Haney. He said what the soul needs is the freedom to create So I happen to be sitting next to Chris West from the Shell Foundation We both just looked at each other and said did he really say that Now if that is what we need to renew our spirits and the planet, how do we invest our dollars? How do we get up every day think about each dollar that we spend? Being directed towards that effort. Okay, so When we find Ideas like Ross's when he came to me probably six years ago and said doc, you know, they call me doc This is my idea I want Entrepreneurs themselves to select who wins the investment what you know, I you know I just I just There was bonkers You know Lord of the flies Turned out to really work for those of you watching at home the way that we make our investments We invest in startups, but it's it's community decisions So we'll have 12 entrepreneurs in Louisville invest seed investments of 50 to 100,000 But instead of a investment committee the entrepreneurs themselves decide who gets Investment from our venture fund. So Ross is telling me this at a time when I've just seen a company that I was working on Lose three billion dollars of market cap in a day So, you know, my whole life in the 90s was evaluating companies acquiring companies Looking at revenue streams and totally the venture capitalist was in a very toxic position Superior and hierarchically driven above the entrepreneur. I wanted no part of it when he said this idea to me I said best idea in a thousand years How do we get it into every single classroom and then not soon after how do we get it into every single portfolio? So that's essentially what we've been working on for you want to show sure so we can show those slides So this is gonna be about five slides We'll try to go through it pretty quickly and the purpose of this is for you to get an understanding of how you can do this Yourself with your own portfolio if you're a wealth manager how to do it for your clients If you're an institutional investor how to do it for yourself. So Here's the image of What we think You know, there's a there's a saying I think comes again from Seamus Haney the end of art is peace So this is an artist rendering of what that Interconnected non-hierarchially driven earth looks like and and in this image I think what you can see is as an is a notion of connectivity Okay, see and if you know them the myth of Indra's net points of light connected reflecting each other and connected all to the Whole it's also as Ross taught me Plato's image of perfect form in the original symbol of the soul Western Ideology has differentiated the soul between the ego and The unconscious what we're gonna do with this portfolio is try to reintegrate those two So we're not working out of our egos that we're working from a fully integrated and as you see on this panel from the ladder up So there's no differentiation between the five thousand dollar loan and the public equity It just raise your hand if I left anybody But I think this is a really important concept So for example if you'd have been in Houston with us two weeks ago with Ross All of the water cohort was there with us and we would have presenting You know very large-scale public equities in ESG and then boom right next to it a portable hot water shower for eastern Africa So going forward we need to have that on our minds that we're keeping those together And we're gonna construct our portfolios in a circular fashion We're gonna use public debt and equity. We're gonna use private debt and equity and screen them as carefully as we can All with the thought in mind of as a cushion or an inner tube if you will for early stage impact and these guys This is the target. This is the most important thing to Support so we're gonna take that early stage impact called access and agency. How do we build a portfolio around that? We're gonna use the symbol of the Vesica Pescas the integration of the opposites to join Public ESG equity with access and agency in this case It's village capital It's Kiva It's in our in our from our perspective peer-reviewed entrepreneurship must come first It's the only thing we know that really inverts the dynamic the way it should So then we're gonna add that to early stage capital and all of you are familiar and there are many like re-inventure There are many good private equity funds that are coming they get better and better all the time I was just meeting with a major college university. They were telling me they got 19% in their private equity Let's make it all focused here. They're gonna use real assets and these are all partners We've been working with for quite a while REITs Social debt capital ESG fixed income. So what do we have at the end of that? It's not a traditional-looking pie chart in Sacred geometry that's called the flower of life. That's what we're trying to do We're trying to think of this traditional pie chart in a way that's more Enlivening enriching and supporting of the renewal of our spirits in the planet go back to it every time So do two more seconds. This is how you do it Take take your asset classes and then the first move you're gonna make is a direct investment Into a fund or should say an indirect investment into a peer-reviewed entrepreneurship fund Help me anybody So the good news is and I think we've just Ross, can you say a little bit? Who thought you were going into your subconscious? You are you are you didn't know yeah, no, I think I think that people get very siloed of well for You know for public equities. I think about this and for my grants I think about this Kevin talks about two-pocket thinking I do this with my philanthropy and I do this with my business And they don't integrate but I actually think it's like ten-pocket thinking I think one of the really Interesting things and maybe Bryce you can you can you can take this a step further is Access ventures has started with one impact objective, which is communities and said how do all of the things which are traditionally Different people making different decisions that are not integrated. How do you how do you use all the whole? Bucket of money you have in lots of different ways for this one overriding impact objective sure. I mean Our goal very simple thriving communities now. That's complex when you actually start doing it But that's the goal we want to see thriving communities and why don't we have thriving communities? Why are we talking about restored communities? It's because there's there's brokenness in our communities. There's disconnectedness people lack access to equitable housing They lack access to finance. They lack access to good governance. They lack access to something So our name kind of comes from that how can we identify ways to? bridge into Solutions that are tailored for that community to open up access open up new markets for the underserved That are unique to that community and so when you look at a portfolio of capital Like access ventures we started with the half a million dollars, but over the last two years I've raised 20 million dollars now it's 20 million dollars that I can put to work in communities to help rebuild communities But I can't do it all at once into housing or into microlending So I have some assets that need to be parked into public equities But we really want those equities as we parked them with Chilton capital to be a part of that holistic a Solution we want our integrated capital approach to be front and center because Your retirement right now as you talked about the two-pocket approach your retirement is going into real companies those companies exist in some community And they're having positive neutral or negative impact on the communities in which they operate And so what does it look like to have fully transparent portfolios and a management team that's helping us identify those public equities But also alternative strategies that help us reach the communities that we're seeking to work in already And so that's where we've brought in village capital as a program to support entrepreneurs We've also invested in their fund So we've also invested in their fun And so what now we can do is we have our private equities at work in the communities in which we're also providing services to the underserved entrepreneurs Another solution we are now invested with community investment managers So they do microlending around the United States and they help support that through four different Partners on the ground and so now we have a fund our private equities are able to support the very activity that we're implementing on the ground And so all of it has impact metrics that can show and demonstrate Our whole portfolio approach to helping to bring about thriving communities Yeah I wouldn't if there's a way that I can acknowledge it's probably over a hundred professionals and many different Investment firms that have collaborated with us over the past four years We've also acted as seed funders and catalysts for those companies, which I unfortunately Cannot speak to you directly because of my role So but just you know, this is a tremendously collaborative effort that Chilton is just you know, I'm just the face of it today But we you know are able to provide that kind of transparency and fully laddered approach to a foundation So that it's work in the world remember that remember the diagram of the arrows coming up and through the ego and the soul But the work in the world can match what's going on in the internal Processes of the foundation and then for us as well like when we say thriving communities Ultimately what we're trying to do is restore human dignity And so the work that we do is integrated was great in the last plenary session I can remember the name generalist name, but he talked about his work in Boston about how they're looking at equity debt and grants I mean, we're doing the same through access ventures in Louisville, Kentucky because what a community needs is all of the above It's all of the above all the above Our grant dollars can be put to work in the areas that bring value to our debt Capital as well as our private equities and so it's integrated It's robust. It's complex But communities problems are complex so we need to meet that right head-on and the role Bryce is describing is this community quarterback role We've got multiple sessions here of people playing this interdisciplinary role And so it's not a CDFI doing it or it's not a credit union doing it Someone in the middle working with the CDFI working with the bank working with village capital working with Kiva It's interdisciplinary between that. It's a quarterback thing. When do you hand off? When do you pass? We've got a four o'clock session with the fellow who came up with the term community quarterback And now it's being used around the country David Erickson of the Fed But he's looking at Joel Solomon plays much the same role in Vancouver Kelly Ramirez plays much the same role in Providence Alicia Rodriguez is playing that same kind of role in Detroit And we've got the folks from New Orleans who are working with a really smart philanthropy the Rockefeller folks Who are leveraging some public equity or some public dollars in New Orleans to make that kind of thing But it's this interdisciplinary role that it's it's a network weaver community organizer merchant banker It's not a leader role. It's a connector role. It's it's you listen to the community But then you figure out how to put the resources there. So there's it's not community organizing It's community organizing with capital around it. It's this really interesting new role And if you don't do that these groups meet together and they don't get things done after the meetings You need somebody who is staffed to do that and then Bryce has got because he was able to raise 20 million He was able to bridge the gap between Kiva and where somebody would be ready for a village capital I think so it's this middle role. It's really it's a new role and we want to popularize that term Derek Brazil is our community raise your hand there He is playing the community quarterback role with us at neighborhood economics We're going to bring a lot of those people together in November to see how that works and figure out which financial tools work We're working with Ariane chute who presented this morning about Financial inclusion and one of the things we want to bring in is one of his companies that is invested in It's something to make African-American hair salon owners own the product rather than just buy the product from Koreans about hair extensions And then that can be a place where it can become something like a trusted peer credit union But they can make one to three hundred dollars more per week by owning the hair extensions rather than going to buy them and So you can help the small entrepreneurs and venture can come down to local businesses to make 24,000 if you figure out which product to bring in so we're bringing in all of the core VCs kind of things into Cincinnati So it's it's it's layering all these resources in a particular place and then Where do you want you were talking about community investment clubs? How do you want Kiva zip because Kiva is the on-ramp people, you know We talked about how this work and we were with somebody and his wife and his wife Invested in Kiva and felt her life changed the next morning. Where does Kiva want to go in a local basis? you know if this model can work in the United States where neighbors are investing in neighbors and You know, there's no silver bullet here, but it's the buckshot buckshot approach If we have more and more community around You know people looking for That next, you know kind of that next opportunity I think this is a model that I'd like to see go global And there's a couple things honestly like we we have about a thousand Here in the Bay Area about 400 small businesses have crowd-funded loans from about 15,000 people In in our Bay Area pilot and we're at 40 businesses in Louisville and and so that's about 4,000 people have invested in local businesses real people like you meet $25 at the time really simple and You know, I wonder how things actually become Go from like this niche thing to like a normal thing, you know, so I was thinking about Yelp, you know in the beginning You know, maybe not many people are using it and then there was this moment where a friend of mine said You know Yelp became a dating site for foodies and that's why a lot of people started writing reviews and it became very social and You know, I want to be incredibly optimistic around neighbors investing in neighbors And then really people investing in each other across wealth and geographic divides But I'm not seeing it happen at the pace that I want to see it and And and so I don't think we at Kiva, honestly have really cracked the Len local movement I think it's a good start But I think there's a lot more that we need to do and the idea that we're talking about backstage is what about faith groups? Mm-hmm, you know people go to church every Sunday and then right afterwards They could go and invest visit the coffee shop that they've invested in Small businesses in the same Congress. I mean, there's so many ideas That we still haven't explored and it doesn't have to be key. That's you know But but I think we're my hope is that in the next decade it moves from niche to something That's normal this idea of lending local lending investing in your own neighbor You can follow them on Twitter. You can like their page on Facebook. You can write a Yelp review You can buy a group on you can you know, but people investing in people It's not yet normal yet and I wonder what it's gonna take to have that be a common everyday thing for all of us to be Invested in the small business down the street So in Cincinnati, we're gonna explore doing it in Sunday school classes or in synagogues Trusted groups that know each other that could track the loans and see how their community is changing and then you know We're gonna start investing in African Americans and not just Africa and I think that's gonna be a real change for folks and Talking about investing in neighborhoods that they don't go to and building those Relationships with you know the hair salon or the body shop or whatever, but I think then the within the faith context It's a really interesting thing though. We're saying that the faith groups can show up as a player But they're not in charge, but they're doing more than you know Just leasing out the basement and so we're gonna ask the question. Who's your neighbor? Well, how are you acting? Are you you know, there is more impact investment money going to Africa than there are to African Americans? So let's look at our attitudes and let's change that and say who's your neighbor? Let's act in a different way So we're gonna do some curriculum around that and we're gonna try to localize and we're you know We're deeply partening because the thing is Kiva makes it easy And then we want to figure out how to do some of the hard things that don't that are stopping the lend local movement right now But I think this is a thing that can appeal to libertarians because you're not donating to the needy You are lending to an entrepreneur that will pay you back. So there's a mutual reciprocity and respect I mean want to help them act their way into a new way of thinking and then think about how they've changed how they are I do think a question is what are the limits of scale of something that's based on altruism and Should there be a crowdfunding platform a local crowdfunding platform that actually basically taps into self-interest so you could lend in That local laundromat or in that local Vietnamese sandwich shop Down the street here and earned a rate of return and the thing that's confusing for me quite honestly is You know Ross if I were to lend you money you're my friend I'm not gonna charge you an interest rate because you're my friend What we what we get a lot of mixed messages about at Kiva is when you invest in someone It's not about earning a rate of return You know, it's it's it's about your own spiritual growth And it's about the desert dissolving one's ego and and people enjoy the sustainable nature of it But maybe if we stay in that Niche of just the best you can do is get your return of capital Maybe a perk like a free muffin if you visit the coffee shop maybe it won't scale to The degree that the problem requires so these are these are the open questions that we have right now around neighborhood investing Right like how you could add in interest but keep social, you know and exactly exactly And and you know, is there some winning combo there that would actually solve the problem at greater scale? Yeah, one of the neat things about this is that Louisville is one of the models like Vancouver is one of the models that's a little further along like Providence is like some of the folks in Detroit But nobody's figured it out. There's so many open questions and with that let's open up to questions. Yes, we have go ahead Do I have somebody with the mic to run to you? Okay Getting high school students in Houston investing in Oscars in Houston. Can we get a mic out here for the questions? That's incredible. So you just set me free. I'm from Houston and And we brought village capital there and hoping to try to reproduce what Bryce had created in Louisville and to hear that you're doing this Yeah, in the community the community definitely must connect. Yes in the third ward in the second one. Hold the mic up St. John's of you're from Houston, of course all the high schools are now getting involved Of course now see I love what you're saying. Yeah, I you know what I do want to applaud her. I think that's incredible So one of the things that Bryce says that's so important is that we must connect and that what entrepreneurs need the most is connection So we've never met but in my experience working with what we call this new society portfolio That's all we see our connections and additions and inclusions that make this extremely robust and meaningful Yeah, it sticks it goes Everybody has been you know thinking about a key word and investing in Africa This is key word local African-Americans Hispanics Underserved entrepreneurs in Houston. We are 100% local. We are full inclusion Creating on an entrepreneurial ecosystem and we are full-on for education building capacity and then getting access to capital Well through the business school students the MBAs and MS finance and the MS accountants. Wow One thing that's amazing about that is I think if communities particularly communities in the u.s. Are going to remain entrepreneurial and great we've got to level the playing field for who has access to capital and most of the Deciders of where capital goes in the u.s. Are white guys. I love white guys being one, but most of the people in the u.s. Are not white guys and What you know one great thing about kevin crowdfunding is I said earlier? 5% of venture capital goes to women 50% of money raised on all crowdfunding sites kevin included are women and that's because there are a lot more Women with agency over who gets capital So this whole idea of I'm going to send my money off somewhere else and not know what happens to it until You know nine months later after seven different iterations. It goes into this White entrepreneur in silicon valley, dude That if we're going to remain competitive and can either be great. That's got to completely Change and that's the first step. So you're doing it. Yeah, wonderful Wonderful. Yes. Hi. My name is chris theodore. I own a News magazine a little closer. Yeah, just hold the mic a little sure my name is chris theodore I own a magazine in southern california called the reader Which is mailed to 390,000 people in southern california and some of the panel talked about the interest in how to Create what is a niche movement into a national movement? And I wanted to tell you that we are scaling our publication nationwide And what we have found is that the fastest and surest accelerator of impact is having community institutions like publication reaching everyone that is Distributing powerful ideas like those that way people themselves say hey that sounds like a great idea rather than the thousands Several thousand people here So my question is have you thought of partnering with media companies like ours to help you scale nationwide? first Personally, I think you bring up a great point Which is why on our team We hired a visual storyteller Because if you think about communities communities may have a people and if we're trying to restore human dignity Each person has an individual store that needs to be told and the community as well So how do we incorporate art to creative community? Storytelling as a part of the fabric of change within communities if you think about How does change happen in a company? How does change happen in an organization? How does change happen in a community happens through people? And yet we assume oftentimes that the story is just known and so like the press release might be this loan Was just made or kiva was launched in Louisville and that's amazing But what if we could actually follow one of those borrowers for 24 hours 48 hours and show that money at work in their lives Show that money and how it's impacted their family or their farm And really tell the story of that money at work again. Capital is a tool to help us So how are we rethinking capital in rebuilding communities is the goal ultimately and so storytelling is a huge part We haven't thought about partnering with national media, but I do think that's a that's a great way as well But we really have an emphasis on good storytelling within our work. That's really interesting the reader is the name Great the reader. Yeah, that's what your role in this ecosystem is so powerful because The limits of this I think the biggest problem is an awareness problem Usually when people go, oh, I just invested in that local small business and I got repaid It's this moment of trust and beauty And people start telling other people But for example, you know, and there's a lot of crowdfunding websites You know, we're trying to make this for everyday people and And we estimate only one in ten Americans are even aware of kiva and most people you think of it as a site where you You know donate or invest abroad and so to actually grow awareness I mean, there's a huge role for media in Allowing people to discover new new ways to you know to feel connected and to have meaning in their life And then, you know, frankly, there's so many cynical stories out there things that promote This is kind of a radically hopeful thing. So You know, I I'd love to I'd love to I don't know what the partnership is but certainly coverage I mean, this is the kind of stuff that I think people are looking for out there Yeah, and for example, the local businesses, you know, right now on the kiva zip platform The our local platform 63 of the businesses are minority-owned businesses and you know to reach communities It is it like we need I think we need to look at more channels that we currently do And you know, if people have ideas on in terms of getting the word out around these zero percent interest loans from the crowds We would love to love to engage cool thing like so kiva Yes, there's a lot of crowdfunding platforms, but kiva is unique zero percent no fees It's the most entrepreneur friendly platform that's out there and it allows for community participation I mean if you think about zero percent no fees, they repay it It's really like do you believe in your business enough To take out a loan on future earnings so that you can Actually grow your business. That's kiva other ones have some sort of required repayment or You've got to fulfill some sort of order and that gets into trouble oftentimes because you might get more than you And you need it the other thing is banks are able to partner. So we've got banks partnering But then there's also community interested groups. So you mentioned African-american entrepreneurs in Louisville, Kentucky just last week We closed on a $50,000 match loan of a group that wanted to focus on minority business owners in that underserved population of the city They can do that through kiva because they know what these entrepreneurs profiles are and those money Those dollars can go directly to those entrepreneurs that they want to support So you can bring in all of these different groups to participate in that process Like I mentioned 1.3 million citizens in our msa every person now can support small business We've done over a quarter of a million dollars in zero percent loans through kiva in the last 11 months 100 percent repayment rate right now And we're just you know, we're just ecstatic about where things are going. It's just it's been a great way for trustees to participate We have non-profit service providers that are providing technical assistance. You think small business development corporations They're doing amazing work score. They're doing amazing working helping entrepreneurs build their business model And yet they can't connect them to capital. They don't have a pool of capital at their fingertips to to connect them to kiva's that capital So now all of a sudden they can help them with their business model Introduce them to kiva and get them that initial funding So there's some great synergies across the community and how kiva brings that to neighborhoods Do we have other questions? What about the potential of layering in a shared economy business model? We've seen phenomenal scale of uber 41 billion dollar valuation Yet the drivers aren't seeing the benefit of that for the most part We're seeing task rabbit. We're seeing air b&b You know these models uh scale Incredibly efficiently and are hyper local local at the same time So is there some potential to fold that in as a layer into You know this both local investment but being able to scale it ultimately You know on a national and global level Very quickly very powerfully And very empowering to the community You know So just asking an open question Well, I was just gonna say that's you're you're hitting the you know the nail on the head for us because The goal is if we can apply this into every portfolio every retail portfolio, so Primal is referring to the faith-based community. So what if that church Converts its endowment to a new society portfolio They've got a ladder up through a community quarterback Who's going to bring in a village capital? Who's going to be? Enabling kiva Who's going to be investing in shared economy assets all the way up through? You know real assets reeds fixed income, you know all the way up to public equities So the lens you see has totally shifted So that we're only looking into that universe so that a church a school And through through village capital. We've actually been talking to a pension fund Of a state that has very difficult Ability to release capital for entrepreneurs into its own system Village capital comes in and launches the first water cohort If they were to adopt a new society portfolio for their pension fund It would release 60 million dollars back into their ecosystem for their own entrepreneurs, but it takes community quarterbacks in concert with these two guys Then with you know the larger, you know equities and reeds and so forth working together to convert that capital Then put it to that use but that's what that's where we're swinging at you hit the nail on the head One of the things we're also looking at here is you know, that's really growing the sharing economy But it's also the 1099 economy compared to the w2 economy So the reasonable projections are that 50% of the people will be getting 1099s versus w2s Which means there's no nobody contributing to unemployment insurance. There's no health insurance. There's no any of the other things So we're we're looking at some of that and some of the risks around that There are some entrepreneurs like sarah horowitz at the freelancers union So as the sharing economy comes in it's great if it helps you keep your mortgage by Letting out the other room, but The uber drivers who are dependent on a 1099 economy if they're unemployed they're out of luck So we have to solve those kinds of things as well a new level of social service That has to be built in that we need to scale in a different way. We have a question out there. Yes. Oh, sorry I'm over here. Um, my name is rachel schwarz and i'm located in chicago. I work for a public health institution And i'm really interested I don't have public health as a background and so i'm coming in trying to Really, um, understand how can we Diversify the revenue streams for community-based organizations focused on health I think you know health insurance is a really Tricky subject to tackle and I think it's one that really keeps a lot of people in poverty And so I I think it's really interesting maybe a concept of well How do we kind of get them access to capital that maybe is outside of government so that they can provide health Yeah, go ahead if you got something. Yeah, I mean I I might say Frame the problem a bit differently So I think there are a lot of nonprofits to say it would be great to be more sustainable How can we diversify revenue streams? I think starting with the problem you were trying to solve as an entrepreneur and then Laying out the building blocks of what that would take to solve it is more important. So Different than public health, but similar big national problem. There's an entrepreneur that we've all worked with in louisville Called kentucky hemp and there was a guy living here in san francisco read Windelberry the author anyone read windelberry from He's like I want to go save the family farm. It's a huge vision. Just like I want to make public health work Great, how do you do that? And so he does his research. He says okay What did family farmers used to grow what are high margin crops that family farmers can grow and he finds that Kentucky has more single family farms per capita than any other state in the country and there are a lot of Very very poor former tobacco farmers So he looks at what soil works for tobacco and that's similarly good margins that it's a growing market It turns out hemp like your hemp seeds that you buy at Whole Foods or whatever whatever it is you use hemp for And turns out that hemp is the answer. So he moves from Silicon Valley to louisville, kentucky Gets needs 10 grand in capital gets his first financing from kiva because they are there They are the they are the lowest lowest The first grade but the first money in they get their first money from kiva They actually work with windelberry and the berry center who has great relationships with these 3000 farms They're kind of the community current quarterback of rural kentucky. Um, they're currently in our national program They're one of the top 12 agriculture startups And they're reaching the kind of scale that you're excited about at least on track and they they didn't start with How do we get how do we diversify? revenue streams and modern agriculture's how do we save the family farm and Very specific about the problem agnostic about the solution that took them from here to louisville, kentucky So guess what else louisville is the home of it's the center of health care. Humana is there united is there kinder yet, so Don't ever you know louisville remember this it's the heart of almost everything we're swinging at and brice will tell you It's the gateway to the south. It's the gateway to the midwest Pay attention and i would champion of louisville, kentucky I don't know. I don't know. I would say go to louisville. That's what I would say I mean there's 84,000 small shareholder farms less left in the state And so the reality is if we can preserve that small farm heritage By improving efficiencies and keeping those farmers on the farm We can also do it in other countries 80 of farms in india as an example are small to medium shareholder farms So if we can if we can work in kentucky, we can also work in internationally. We're globally connected economy How do we do these things to support that globally connected economy? I think we have time for one last question Okay, great. Thank you. Um, so louisville might be the gateway, but wendelberry is a native son of wisconsin My question is twofold and it's really around the community quarterback role And it is around a revenue model for that Where you're getting your revenue from and do you see sustainability? And then the second is the broader ecosystem that exists in place in a community Around which those entrepreneurs must exist and thrive Is much broader and i'm just wondering How you see that in your role of community quarterback or do you? Great question community quarterback role is a new title that i'm currently wearing I guess So i'll maybe let you talk about that As far as the revenue model, I mean it's great. I mean neighborhoods by scale are really difficult That's why you see a lot of city-wide urban planning efforts And the theory then is by extension the neighborhoods will benefit the trickle down theory, right? So if we have a city-wide approach shelby park as a neighborhood Will benefit by extension So if you have a bottom up approach, how do you do that our neighborhood that we're working in right now Is a 15 block area there's over 300 bacon properties They need not just single family, but multifamily commercial apartments So it's a blended portfolio most housing developers don't do that because the returns are tight and that's just not how they do it We do multifamily. So if you're really trying to come from a bottom up approach It's extremely difficult. So for us I started really simply and said I think we can do this with a four percent return went to a couple friends that had some means And they they loaned me a half a million dollars So it started off with a for-profit real estate holding company was on the side Nobody was working for it and I just brokered relationships and it started working and then from there One of them wanted to do more And saw the value of integrating other solutions such as kiva and microlending And so I raised a half a million dollar. I'm five million dollars And it was at that point we decided are we going for profit? Are we going nonprofit and what we decided to do is set up a nonprofit fund? So that we could reinvest those the returns that we saw back into the community and expand our work that way So the the five million still is really really small And we were only able to hire two people we hired someone that was working on our redevelopment projects That was working with formerly incarcerated and homeless individuals and creating jobs and a training program We've done over 40 jobs in the last 12 months through construction on the redevelopment projects alone So we were able to hire him And then also our microlending director to become the kiva fellow and start to build that activity But again, still too small only two people It was when we got to 20 million that we were able to build the team There's so many different ways you can do it. That's how we went Our future is hopefully that we're making investments into Direct investments into companies that are generating a nice return creating value We're able to repurpose that into the work we're doing We could raise a new market tax credit historical tax credits low-income I mean, there's a lot of different monies out there. I think now that we're starting to explore But it it kind of was We just built it off a half a million to start so yeah I'd say pragmatic answer to your question is this sounds awesome. How do we pay the bills for this person? And I we've we've worked in 20 cities across the u.s. I think the biggest differentiator between the ones that are working and I'd put Buffalo I'd put new Orleans Durham Louisville in the camp of ones that are working for the ones that are maybe a little bit less exciting right now are Whether local leadership and specifically local leadership with cash is willing to pay for ecosystem roles that don't have any direct benefit to Your vision statement or your Outcomes matrix today, but do have benefit to the community And it can be all kinds of like Buffalo is their quarterbacks funded by the state of New York and Andrew Cuomo's Buffalo billion initiative New Orleans is a lot of post Katrina economic development money combined with local philanthropy In Durham, it's a for-profit investment fund by a family that owns a bunch of real estate and thinks that A thriving and inclusive Durham will make them a bunch of money as major real estate holders in Durham And so that but it all is a person in a position of resources has designed has decided to plant seeds with 25 50 year paybacks going back to the Silicon Valley Detroit Parallel not like I need this deliverable at the end of this year Right, I would just I would just add if you've got some capital just the underlying thesis is to Deploy it in an aligned fashion. That's Parallel to your external mission Just watch what happens and see but in our experience and our hope is That that will add to what you have to work with and So far we're watch we're seeing that there's a little bit of outperformance We're you know, it's early days But I think you're finding all over this conference that people are reporting on the Efficacy and the success of impact investing so match up your insides with your outsides and Follow this quarterback. That's what I would say Right and there there are indicators where some communities can do this and some can't You know, are they siloed in fighting about money or is housing talking to health talking to Transportation is there interdisciplinary stuff already happening? Are they talking to poor folks or are they talking about poor folks? They're talking to poor folks It's a lot easier to get this done than if they're talking about poor folks and there's that kind of silo So we've looked at some communities that wanted us to get involved with neighborhood economics And they didn't have those characteristics One of the other indicators is are they sharing data and they share data after about a year to a year and a half of trusting relationships and they My friend tom rose has a thing here where it's really interesting There was a housing group a food system group and a transportation group And they all had a map of the problem and after a year and a half They realized they were mapping the same neighborhoods and they started to do overlays where like You're working not only in the same zip code working in the same block And so housing and health and transportation all started really being on the same map But they didn't start merging the overlays of the maps until they had a year and a half of trusted relationships So some communities are not ripe other communities are and then they're willing to fund this person in the commons That makes high street and main street really work Thank you. And bryce is the example. We all want to be like bryce Thank you for being in this Thank you