1. LEAN LAUNCHPAD
Unleash the Freedom * Save for the Future * Invest with Impact
A social cause peer-to-peer lending platform that matches indebted, underprivileged
consumers with investors to help them pay off their credit card debt
Day 1 Day 2 Day 3 Day 4 Total
Customers 16 15 12 (customer) 3 (customer) 50
Interviewed 1 (partner) 2 (partners)
1 (channel)
Rajesh Koppula * Francesco Pagliarello * Vippy Wong * Paul Niemczyk * Alexis Kwong Alvarez
EMBA Global AE EMBA Global AE EMBA Global Asia EMBA NY EMBA Global Asia
CONFIDENTIAL

2. BUSINESS CANVAS – DAY 1
• Develop/Manage Platform Borrowers
• Promotion & Marketing Borrowers •Loan Amount - <$500 to
$10,000+
• Credit Bureaus , Banks, • Risk Management 1.Social/Affinity groups to help
Trust Accounts them get out of Consumer Debt. •Credit Type – Underserved,
• Reporting Poor, Fair, Good, Excellent
• Internet Search Engines 2.Debt Education and Money
• Borrower/Investor Analytic saving tools (Later on) •Social Segment – Location,
& Education Tools(Later
• Investment Funds Relationship with Borrowers,
Profession, Education, Age,
Stage)
School, Groups & Associations.
Investors and Partners.
• Regulatory bodies –
SEC, OCC, etc Investors
•Investor Type – Individual,
• Physical :IT Infrastructure- Institutional
Servers, Software,
Datawarehouses , Office & Investors •Return Type – Impact,
equipment Maximum Yield
1.Social/Affinity groups to
• Intellectual : Brand, help their network come out •Social Segment – Location,
Proprietary Knowledge, of Debt 1.Social Media & Groups Profession, Education, Age,
Patents and Copyrights,
Customer database
Alumni, Groups &
2.ROI or Impact Investment 2.Blogs Associations.
opportunities
• Human resources – Risk, 3.Direct Marketing
Technology, Marketing, •Investment Amount - $500
Operations, Legal & 4.Affiliate Marketing $10,000+
Compliance
• Percent of Loan Amount
• Fixed : Development and Launching Costs , Infrastructure , • Margin on Returns
Accounting systems, Trust Accounts, Legal & Marketing
• Subscription Fee
• Variable : Customer Data Costs , Investment, Reporting,
Recovery, Marketing , Operations , Legal & Compliance.
• Pay-per-use
CONFIDENTIAL
• Referrals/Affiliate revenue

3. Hypothesis 1: Affinity Groups
Hypothesis Experiment Result
People will want to help others in • Interviewed people around • Mixed result in borrowing /
their social or affinity groups (e.g. the Columbia University area investing within a network
university alums) come out of • Focus on underprivileged
credit card debt segment
Special affinity amongst ethnic • Interviewed people in ethnic • Yes
communities areas such as China Town and • Mixed on required returns
Little Italy
• Phone interviews with Indian
and Russian communities
Hypothesis 2: Social Investment
Hypothesis Experiment Result
Investors will be willing to help Found socially minded people and Yes
underprivileged borrowers come asked if they would accept lower
out of debt as a type of social yields
investment, for lower yields than
market rates

4. Hypothesis 3: Yield Chasers
Hypothesis Experiment Result
Yield investors would be willing to Interviewed people on Wall Street No!
accept a lower return for a social
cause
Hypothesis 4: Demand from Borrowers
Hypothesis Experiment Result
Underprivileged borrowers know • Interviews in Harlem • 66% knew refinancing is an
they can refinance their credit option
cards at another rate • 42% said they would go to a
bank
• 50% would go to a website if
they trusted it and a higher
percentage would go if the
rate was significantly lower

5. Hypothesis 5: Marketing Channels
Hypothesis Experiment Result
Is internet a viable option for Interviewed people in Harlem Internet is a viable option; 50%
reaching target borrowers? said they would use the internet.
Some suggested direct mail.
Non profits are a possible channel Discussion with Robin Hood Yes but need to speak with more
Foundation non profits to verify

6. Customer Archetypes - Borrowers
Tom Jane John
Nathan
?
High Low
Social Cause
Customer “Story”
a) Tom c) John
<$35,000 family income Upper middle class with life problem
2 kids Radiologist
Shop at Target and JC Penney Middle age
Drives a Chevy or used Honda Has a child with cerebral palsy
No college education Recently lost his job
b) Jane Slipping on payments
Single mom with 1-2 kids
No college education

7. Economics of the Business Model
Customer Acquisition Cost (CAC) for
Total CACs (AdWords and Direct Mail)
AdWords
– Average CAC for bank to acquire credit card – CAC for Borrowers
customer: $30-$80 • Assumption: $100 CAC for AdWords; $198
– Using AdWords of CPC = $1 and assuming CAC for Direct Mail
conversion = 1%, CAC = $100 • Avg CAC: (100+198)/2 = $149
– Underprivileged customers loan size range $500- – CAC for Investors
$3,000 Average loan size of $1,750 • Assumption: $100 for AdWords
– Spread & revenue per average loan 5% = $87 – Total CAC: $249
revenue per loan
– Currently not considering cross-sell or up-sell
– If want to cover CAC in 12 months, we need to
opportunity to borrowers
generate revenue $249 per year!
• LTV = one-time sale to borrower
– Assume loan duration is 3 years: $249*3 = $747
Revenue $87 $1,750 avg loan size, 5% spread – Total Loan Size, assuming a 5% spread
• $747 / 5% = $14,940
CAC $100 To achieve gross profit of 30% •  Problem: Above non-prime

8. BUSINESS CANVAS – DAY 2
Borrowers
• U.S. underprivileged borrowers
• Develop/Manage Platform Borrowers with low income, challenging
Relationship with Borrowers,
stories and high debt-to-income
Investors and Partners.
• Promotion & Marketing 1.Social/Affinity groups to ratios
• Non-profits Underprivileged borrowers Borrowers
• Loan Amount - <$500 to
• Universities (focus on • Risk Management receive help from investors who • Public transportation ads
$10,000+
• Credit Type – Underserved, Poor,
Columbia) perceive a social cause to get • Direct mail
Fair, Good, Excellent
• Philanthropy • Reporting them out of Consumer Credit • Workshops through community
• Social Segment – Location,
Card Debt centers, churches, non’-profits,
organizations booths
Profession, Education, Age, School,
• Credit Bureaus, Banks, • Borrower/Investor Analytic Groups & Associations
& Education Tools(Later 2. Debt Education and Money
Trust Accounts
Stage) saving tools (Later on) Investors
• Internet Search Engines Investors • Male and female college-
• Investment Funds • Internet marketing educated investors seeking a
• Regulatory bodies – • Direct mail social investment cause
SEC, OCC, Consumer • Columbia alums, universities
• Philanthropy partner
Protection Agency • Investor Type – Individuals,
• Physical :IT Infrastructure- Investors events
Institutional Corporations
Servers, Software,
focused on Corporate Social
Datawarehouses , Office & 1.Social/Affinity groups Give Responsibility
equipment investors an opportunity to • Support from Columbia
pursue a social cause by University
• Intellectual : Brand, 1. Direct Marketing
helping underprivileged • Return Type – Impact,
Proprietary Knowledge, 2. Non-profit organizations
borrowers to help their Maximum Yield
Patents and Copyrights, 3. Dedicated e-commerce
network come out of Debt • Social Segment – Location,
Customer database 4. Point of sale Profession, Education, Age,
5.Social Media & Groups Alumni, Groups & Associations.
• Human resources – Risk, 2. Reasonable ROI or Impact 6.Blogs • Investment Amount
Technology, Marketing, Investment opportunities 7.Affiliate Marketing Individuals - <$500 (until trust
Operations, Legal &
proven)
Compliance
• Percent of Loan Amount
• Fixed : Development and Launching Costs , Infrastructure , • Margin on Returns
Accounting systems, Trust Accounts, Legal & Marketing
• Subscription Fee
• Variable : Customer Data Costs , Investment, Reporting,
Recovery, Marketing , Operations , Legal & Compliance.
• Pay-per-use
CONFIDENTIAL
• Referrals/Affiliate revenue

9. BUSINESS CANVAS – DAY 3
Borrowers
• U.S. underprivileged borrowers
• Develop/Manage Platform Borrowers with low income, challenging
Relationship with Borrowers,
stories and high debt-to-income
Investors and Partners.
• Promotion & Marketing 1.Social/Affinity groups to ratios
• Non-profits Underprivileged borrowers Borrowers
• Loan Amount - <$500 to
• Universities (focus on • Risk Management receive help from investors who • Public transportation ads
$10,000+
• Credit Type – Underserved, Poor,
Columbia) perceive a social cause to get • Direct mail
Fair, Good, Excellent
• Philanthropy • Reporting them out of Consumer Credit • Workshops through community
• Social Segment – Location,
Card Debt centers, churches, non’-profits,
organizations booths
Profession, Education, Age, School,
• Credit Bureaus, Banks, • Borrower/Investor Analytic Groups & Associations
& Education Tools(Later 2. Debt Education and Money
Trust Accounts
Stage) saving tools (Later on) Investors
• Internet Search Engines Investors • Male and female college-
• Investment Funds • Internet marketing educated investors seeking a
• Regulatory bodies – • Direct mail social investment cause
SEC, OCC, Consumer • Columbia alums, universities
• Philanthropy partner
Protection Agency • Investor Type – Individuals,
• Physical :IT Infrastructure- Investors events
Institutional Corporations
Servers, Software,
focused on Corporate Social
Datawarehouses , Office & 1.Social/Affinity groups Give Responsibility
equipment investors an opportunity to • Support from Columbia
pursue a social cause by University
• Intellectual : Brand, 1. Direct Marketing
helping underprivileged • Return Type – Impact,
Proprietary Knowledge, 2. Non-profit organizations
borrowers to help their Maximum Yield
Patents and Copyrights, 3. Dedicated e-commerce
network come out of Debt • Social Segment – Location,
Customer database 4. Point of sale Profession, Education, Age,
5.Social Media & Groups Alumni, Groups & Associations.
• Human resources – Risk, 2. Reasonable ROI or Impact 6.Blogs • Investment Amount
Technology, Marketing, Investment opportunities 7.Affiliate Marketing Individuals - <$500 (until trust
Operations, Legal &
proven)
Compliance
• Percent of Loan Amount
• Fixed : Development and Launching Costs , Infrastructure , • Margin on Returns
Accounting systems, Trust Accounts, Legal & Marketing
• Subscription Fee
• Variable : Customer Data Costs , Investment, Reporting,
Recovery, Marketing , Operations , Legal & Compliance.
• Pay-per-use
CONFIDENTIAL
• Referrals/Affiliate revenue

10. BUSINESS CANVAS – DAY 4
Borrowers
• U.S. urban underprivileged
Borrowers borrowers
• Public transportation ads - with low income (or)
Borrowers • Direct mail - challenging stories and or
• Workshops through community - high debt-to-income ratios
• Develop/Manage Platform centers, churches, non’-profits,
• Non-profits 1.Underprivileged and “Problem • Credit Type
• Promotion & Marketing booths
Story” borrowers receive help - Underserved
- Robin Hood(if • Risk Management - Poor
interests align • Reporting from investors who perceive a Investors - Fair
• social cause to get them out of • Internet marketing
• Community Borrower/Investor Analytic - Lower Middle Class (Avoid
Credit Card Debt with lower
Organizations & Education Tools(Later
interest rate loans
• Direct mail Highest Credit Risk)
Stage)
-Neighborhood Trust • Philanthropy partner - Upper Middle Class
• Department of events
Consumer Affairs Investors
• Universities (focus on • Male and predominantly
Columbia) female
• Philanthropy 1.Non Profit • college-educated investors
organizations Investors 2.Community Organizations seeking a social investment
• Physical :IT Infrastructure- 3.Ads and Publicity:free
• Credit Bureaus, Banks, cause
Servers, Software, 4.Public Transportation
• Columbia alums,
Trust Accounts, Datawarehouses , Office & 1.Give investors an 5.Community Papers
6.Loan Counselling Centers • Other universities alums
Internet Search Engines equipment opportunity to pursue a social 7.Grocery -Family Dollar, Walmart,etc • Investor Type – Individuals,
• Investment Funds cause by helping 8.Online Marketing:Email Marketing,
Corporations focused on CSR
• Regulatory bodies – • Intellectual : Brand, underprivileged and “Problem 9. Web Searches,Adwords,blogs &
forums •Casual investors
SEC, OCC, Consumer Proprietary Knowledge, Story” borrowers come out of 10.Partnerships with finance advisors • Bank products users
Patents and Copyrights,
Protection Agency Debt 1.Direct Marketing
(deposits, CDs)
Customer database
2.Non-profit organizations • Ethnic investors with ethnic
2. Higher ROI than traditional 3.Dedicated e-commerce affiliation (on hold)
• Human resources – Risk,
investment products 4.Point of sale • Investment Amount
Technology, Marketing,
5.Press (WSJ) Individuals - <$500 (until trust
Operations, Legal & 6.Key influencers, word of mouth proven)
Compliance
• Fixed : Development and Launching Costs , Infrastructure ,
Accounting systems, Trust Accounts, Legal & Marketing • Percent of Loan Spread (3-5%)
• Margin on Returns
• Variable : Acquisition, Customer Data Costs , Investment, • Subscription Fee
Reporting, Recovery, Marketing , Operations , Legal & • Pay-per-use
Compliance. • Referrals/Affiliate revenue
CONFIDENTIAL

11. BUSINESS CANVAS – DAY 5
Borrowers
Borrowers • U.S. underprivileged borrowers
• Public transportation ads - with low income (or)
Borrowers • Direct mail - challenging stories or
• Workshops through community - high debt-to-income ratios
• Develop/Manage Platform centers, churches, non’-profits,
• Non-profits 1.Underprivileged and • Credit Type
• Promotion & Marketing booths
“Problem Story” borrowers - Poor
- Robin Hood(if • Risk Management - Fair
interests align • Reporting receive help from investors who Investors
perceive a social cause to get - Lower Middle Class (Avoid
• Community • Borrower/Investor Analytic • Internet marketing Highest Credit Risk)
them out of Credit Card Debt
Organizations & Education Tools(Later
with lower interest rate loans
• Direct mail - Upper Middle Class
Stage)
-Neighborhood Trust • Philanthropy partner
• Department of events
Consumer Affairs Investors
• Universities (focus on • Male and predominantly
Columbia) female
• Philanthropy 1.Non Profit • college-educated investors
organizations Investors 2.Community Organizations seeking a social investment
• Physical :IT Infrastructure- 3.Ads and Publicity: free
• Credit Bureaus, Banks, cause
Servers, Software, 4.Public Transportation
• Columbia alums,
Trust Accounts, Datawarehouses , Office & 1.Give investors an 5.Community Papers
6.Loan Counseling Centers • Other universities alums
Internet Search Engines equipment opportunity to pursue a social 7.Grocery -Family Dollar, Walmart,etc • Investor Type – Individuals,
• Investment Funds cause by helping 8.Online Marketing: Email Marketing,
Corporations focused on CSR
• Regulatory bodies – • Intellectual : Brand, underprivileged and 9. Web Searches, Adwords, blogs &
forums •Casual investors
Proprietary Knowledge,
SEC, OCC, Consumer “Problem Story” borrowers 10.Partnerships with finance advisors • Bank products users
Patents and Copyrights,
Protection Agency come out of Debt 1.Direct Marketing
(deposits, CDs)
Customer database
2.Non-profit organizations • Ethnic investors with ethnic
2. Higher ROI than traditional 3.Dedicated e-commerce affiliation (on hold)
• Human resources – Risk,
investment products 4.Point of sale • Investment Amount
Technology, Marketing,
5.Press Individuals - <$500 (until trust
Operations, Legal & 6.Key influencers, word of mouth proven)
Compliance
• Fixed : Development and Launching Costs , Infrastructure ,
Accounting systems, Trust Accounts, Legal & Marketing
• Loan Spread (3-5%)
• Variable : Acquisition, Customer Data Costs , Investment, • Subscription Fee
Reporting, Recovery, Marketing , Operations , Legal & • Referrals/Affiliate revenue
Compliance.
CONFIDENTIAL

12. Iterate: Next Steps
• Research regulations surrounding online peer to peer
lending platforms
• Build an MVP
• In real life research of customer acquisition costs using
different marketing channels for both borrowers and
investors
• Continue to test customer segments, for example, social and
ethnic affiliations

13. Appendix

14. Competitor Landscape
Competitors Type of borrower Profit ROI for lnvestors Interest paid?
making?
Kiva Small businesses and ppl Non profit No ROI No interest paid to
without access to banks lenders, only interest
paid to field partners to
cover OpEx
Lending Club (LC) Prime borrowers with Profit High returns from Lower rates than banks
FICO score >660. Most making 6% to 18% and credit cards
stringent requirements.
Prosper FICO score >640. Better Profit High returns from Lower rates than banks
option for borrowers making 6% to 18% but may and credit cards
than Lending Club. have higher returns
due to higher risk.
Lending Tree Loan broker that matches borrowers to lending institutions. Lenders pay to compete for
business; borrowers don’t pay.
LoanSprite Low Income, High Debt- Profit -Low/reasonable Lower rates than banks
to-Income, Non-Prime, making returns due to and credit cards,
segment. social cause. potentially lower than LC
-Similar/higher and Prosper
repayment rates

15. TARGET MARKET - US
Target Addressable Market Served Available Market
• Total US Revolving Debt (98% •Non-Prime– 40%, $362.9Bn
CC) – $864.2 Billion.
•% of households – 46.7% Served Available Market
•Average CC Debt- $7,768 •Assuming 50% “Problem
Story” Archetypes ->
•42% population < 700 FICO “181.45Bn”
LoanSprite
•Assuming 0.25%
Market Share in 3
years ~ $453MM
•Assuming 3% -6%
Gross Margin =>
$54.4MM – 108.8MM
http://www.nerdwallet.com/blog/credit-card-data/average-credit-card-debt-household/
Source: FRBNY Consumer Credit Panel

16. How it Works About Us
Are you struggling to keep up with your
Invest smartly in a good cause. Help low
credit card payments? We offer help to
income individuals to a debt free life,
low income individuals with a low
with reasonable return on investment.
interest loan to pay off your debts.
Start helping today! Get help now!
PROTOTYPE – WEBSITE

17. PROTOTYPE – WEBSITE
How it Works About Us
Hi there, I am originally from Latvia, and I have been in the US for 5
Anonymous years. I built up my debt with my credit card when my baby Jasmine
was born and now I am struggling to keep up with the payments. I
from Queens, NY need help now since Jasmine is starting school next month. I want to
be and stay debt free.
$3,000 4 Years 10%
Loan Amount Lender yield Sprite rating
$2,300 funded, $700 left $ Help her now!

18. Competitor Landscape Diagram
Kiva
Microlending
LoanSprite Non-profit
Social cause Sub prime
Low rates No credit history
Sub prime Multi-national
Near prime
No social cause
Prime borrowers
Prosper
Lending Club
Pro borrowers
Pro Investors

19. Channels
Borrowers “Social” Investors
Non-profit organizations Online: email marketing, web
searches, blogs and Adwords
Community organizations Social marketing
Advertising and Publicity: free Advertising and Publicity:
newspapers, public Financial press
Tom transportation, community
papers
Loan counseling centers and [in process of testing]
websites: both for profit and
non-profit
Grocery stores (POS), e.g. Family
Dollar, Walmart, Target
Online marketing: email
Jane marketing, web searches,
Adwords, blogs and forums
Partnerships with finance
advisors