By Jules Maltz
On a Mission
College economics class taught me that the goal of a firm is to maximize its profits. When you make that assumption, the math gets easy. You can calculate the optimal level of supply to match a demand curve and generate the highest profits. You can perfectly predict how firms behave in monopolistic, oligopolistic, or perfectly competitive markets. But that's only on paper, and real life isn't an economics textbook.
The best companies have a mission. They exist to change the world in a fundamental way. Just as people aren't robots maximizing their pocketbooks with every action, companies can't solely worship at the altar of profits. A worthy mission inspires the best employees to come to work. A mission motivates a team to fight through setback after setback. A mission makes a company take risks and move the improbable one step closer to reality.
A World of Opportunity
Today, I'm proud to announce IVP's investment in a company that cares deeply about its mission. Tala exists to provide affordable credit to the over two billion people on this planet who have little or no access to capital. Credit is the harbinger of opportunity. Credit is how Spain financed Columbus' journey to America. Credit is how our founders funded the American Revolution. And, today, credit is what allows a restaurant owner to open her doors, a parent to buy a house, or a student to afford college.
Credit creates the potential for individual advancement and societal progress. But for many, credit is impossible. The traditional financial system in emerging markets can't serve individuals who have little identity information or credit history. Local lenders sometimes provide capital, but often charge exorbitant rates or penalties that continue a cycle of stagnation. Fortunately, two trends are changing this.
Smartphones and Mobile Money
There are now more mobile devices than people on this planet and over 2.6 billion smartphones. By 2020, 6.1 billion people will have smartphones, more than 70% of the world's population. Smartphones today cost less than $3.60, and the price is dropping fast. Smartphones lead to faster connectivity, better information, and disrupt legacy institutions, particularly in financial services.
In the United States, the financial system evolved slowly over nearly 250 years from the creation of the first Bank of North America in 1781. The U.S. developed print money, plastic credit cards, and built over 90,000 physical bank branches. But if we were starting over with today's mobile technology, we'd do things differently. Emerging markets are skipping over traditional banking and moving straight to mobile money. In Kenya, over 31 million subscribers use mobile money services, more than the adult population of the country. It's safer and easier to pay for goods and services in a rural village in Kenya than on the streets of Manhattan. While only 8% of the global population has mobile money accounts, penetration rates are highest in Sub-Saharan Africa, Southeast Asia, and Latin America. It's one of the few areas of finance where the developed world is massively behind.
Building the Future of Finance
For Tala, the rapid rise in smartphone penetration and mobile money creates an opportunity to provide affordable credit instantly and digitally to billions. Using more than 10,000 mobile data points per customer, Tala underwrites an individual's creditworthiness and creates a score where it previously didn't exist. With this score, Tala provides financial access, choice, and control to underserved people everywhere. Since launching in early 2014, Tala has made over one million loans in East Africa totaling over $50 million in originations. Over 92% of borrowers repay the loans, and more than 90% of customers come back for additional loans. Currently operating in Kenya, Tanzania, and the Philippines, Tala plans to expand throughout the world and address the $2.1 trillion unmet need for credit.
Leading the Way
Mission-driven companies start with a leader. At Tala, the company's founder and CEO, Shivani Siroya, is deeply passionate about changing how financial services work. Whether at a large financial institution or the United Nations, she has fought tirelessly to create opportunities for everyone around the globe. She's recruited a talented team of 75 people in Santa Monica, Nairobi, and Manila, who are all passionate about the company's mission and Tala is hiring!
Money Matters
For too long, profit maximizing bankers have dominated financial services, characters embodied by Mr. Potter or the brothers Randolph and Mortimer Duke. Fortunately, a new generation of fintech startups is emerging. These entrepreneurs are choosing mission over short-term profits. They realize that money is a powerful instrument for individual advancement and societal change. They understand that the finance market is so large that, if successful, they will create huge companies that truly matter to their customers, employees, and investors.
At IVP, we're proud to back some exceptional, mission-driven fintech companies such as Indiegogo, NerdWallet, Oportun, and now Tala, which are changing people's lives for the better. So long as these companies stay true to their mission, the future of finance is bright.
Jules Maltz is a General Partner at IVP, a later-stage venture capital firm based in Menlo Park, CA.
Most recent headlines
04/08/2024
Dalet, a leading technology and service provider for media-rich organizations, is excited to announce Santiago Solanas as its new Chief Executive Officer (CEO)....
03/06/2024
Dalet, a leading technology and service provider for media-rich organizations, a...
24/05/2024
On April 6, 1974, the Swedish pop quartet ABBA won the Eurovision Song Contest w...
24/05/2024
For more than a year, the U.K. government has been working to redefine how the i...
24/05/2024
Alone Australia continues to build as it moves towards finale
23 May, 2024
Media releases
The program continues to deliver for SBS with significant uplifts...
24/05/2024
EditShare Introduces Expanded Product Line-Up at BroadcastAsia
Transforming innovations in workflow, server and delivery from storyboard to screen
Boston, MA...
24/05/2024
Scenario 2.0 introduces pre-calibrated lens templates and the Lens Template Finetuner, increasing flexibility and compability while also saving a great amount o...
24/05/2024
Based on a long-term, coordinated development effort, Chyron today announced sweeping improvements across its news workflow portfolio that empower broadcasters ...
24/05/2024
Cobalt Digital, known for its vast array of signal processing products, is strengthening its position in the Pro AV market by exhibiting at InfoComm 2024 for th...
24/05/2024
HSE USA today announced that the company s JPEG-XS IP Core for KVM and kvm-tec Scalable Pro Line 5K were honored with three awards at this year's NAB Show i...
24/05/2024
Aputure, creators of LED lighting for filmmakers, is excited to showcase its award-winning lineup of professional lighting solutions at the upcoming Cine Gear E...
24/05/2024
EvertzAV (https://av.evertz.com), a division of Evertz, the global leader in providing professional A/V over IP solutions, is proud to announce its partnership ...
24/05/2024
With 25 Prism Sound ADA-8XR multichannel converters already in use across its five studios, the internationally acclaimed Metropolis Studios in London is no str...
24/05/2024
Leader Electronics Corporation, globally active innovator of broadcast-quality test and measurement instrumentation, announces an expansion to the capabilities ...
24/05/2024
Digital Alert Systems, the global leader in emergency communications solutions for video services providers, and broadcast equipment provider Inovonics today an...
24/05/2024
Time in Pixels Updates OmniScope with New Twin Peaks Scope for Professional Co...
24/05/2024
ZEISS CinCraft Scenario Camera Tracking Now Compatible with Most Popular Lens Br...
24/05/2024
Tonight's the night! The Greenville Yard Gnomes open their inaugural home season at Guy Smith Stadium!
Join the Gnomes for all the fun and excitement of t...
24/05/2024
Boston Conservatory Plays a Leading Role at the 41st Annual Elliot Norton Awards With five wins and eight additional nominations, the Conservatory's theat...
24/05/2024
An amendment to the Bill includes retaining the Reithian principles of public service broadcast, ensuring PSBs continue to inform, educate and entertain
By Jen...
24/05/2024
Merle joins BCE following a 30 year career including roles at Orange/Globecast and beIN Media Group
By Matthew Corrigan
Published: May 24, 2024
Merle join...
24/05/2024
WASHINGTON, D.C. As concerns grow about the potential impact of fake AI-generate...
24/05/2024
CINCINNATI The E.W. Scripps Company has named Robin Davis as its senior vice president, chief distribution officer....
24/05/2024
CAIRO, Egypt PlayBox Neo has announced that it is providing technologies for the expansion of the broadcast channel management and playout infrastructure at the...
24/05/2024
WASHINGTON, D.C. FCC Commissioner Brendan Carr has come out against a proposal b...
24/05/2024
WASHINGTON, D.C. Federal Communications Commission commissioner Nathan Simington has announced several staff changes with one departure from his office, one new...
24/05/2024
The Increasingly Important Role of IPTV in College & University Sports Venues
Andy Wagner May 23, 2024
0 Comments
According to Nielsen data, college b...
24/05/2024
Disguise Launches New Generation of EX Media Servers to Power the Future of Ente...
24/05/2024
Graded on Baselight 6.0 - rase Una Vez En El Caribe (Once Upon a Time in the Ca...
24/05/2024
Harrisburg-Lancaster-Lebanon-York is one of just two four-city DMAs in Nielsen's top 50, and the so-called HLLY market (pronounced hilly ) offers small-tow...
24/05/2024
Former MediaLink head Michael Kassan's slander and libel suit against a lawyer for UTA has been dismissed....
24/05/2024
Mission Broadcasting has sent a letter to Adell Broadcasting terminating Mission's agreement to purchase WADL Detroit for $75 million....
24/05/2024
The 1% Club, a game show hosted by Patton Oswalt, debuts on Prime Video May 23 and then on Fox June 3. The show is not so much about answering trivia questions,...
24/05/2024
Pete Hegseth, Fox & Friends Weekend co-host, releases his book The War on Warriors: Behind the Betrayal of the Men Who Keep Us Free June 4. Published by Fox New...
24/05/2024
The CW has renewed drama Wild Cards for a second season. Vanessa Morgan and Giacomo Gianniotti are in the cast. There will be 13 episodes....
24/05/2024
The certification underscores world-class standards of services at Yahsat's Abu Dhabi Teleport
Abu Dhabi, United Arab Emirates, 21 May 2024: Al Yah Satelli...
24/05/2024
May 24th, 2024 Press Materials Available Here
TRIBECA FESTIVAL AND CANVA ANNOU...
24/05/2024
Indy 500: NBC Sports Introduces Virtual Car, Pit-Box SpyCams to Memorial Day Tra...
24/05/2024
The New Big Sports (Video) Scene: Las Vegas Sports Venues Fire Up the Entertainm...
24/05/2024
Inside DAZN's host broadcast of the UEFA Women's Champions League Final By George Bevir
Friday, May 24, 2024 - 09:00
Print This Story
Dave Wade, D...
24/05/2024
UEFA Europa League Final 2024: Broadcast facts and figures for Atalanta BC vs Ba...
24/05/2024
WNBA Tip-Off 2024: CBS Sports Commits to Women's Pro Basketball With Full On...
24/05/2024
Back to All News
Netflix presents the teaser trailer for LALIGA: All access. Pr...
24/05/2024
The Urania Hall has been an architectural gem in the Polish city of Olsztyn since 1978. In a significant step towards improving the city's cultural and spor...
24/05/2024
Scripps Research's Skaggs Graduate School awards doctoral degrees to 32nd graduating class Skaggs family also honored at commencement ceremony as first reci...
23/05/2024
Alone Australia continues to build as it movies towards finale
23 May, 2024
Media releases
The program continues to deliver for SBS with significant uplift...
23/05/2024
As the 2023 HPA Awards were taking shape last year, in the aftermath of the pand...
23/05/2024
By HPA Staff
The call for submissions for the HPA Engineering Excellence Awards is already open, and closes soon on June 14; but the submission period for crea...
23/05/2024
PHILADELPHIA Comcast is reporting that it has reduced the electricity it takes to deliver each byte of data across its network by 40% since 2019....
By Jules Maltz
