In 2004, Matt Flannery and Jessica Jackley witnessed the power of microfinance firsthand while on a trip which would become a life-changing experience. Visiting East Africa - Jessica conducting impact evaluation surveys for Village Enterprise Fund and Matt filming interviews with small business entrepreneurs - they were able to see and hear firsthand how small grants of only $100 - $150 had been used to build small businesses which could then support a family.

Matt and Jessica returned from Africa with one question in mind: "How can we lend to a rural African entrepreneur?"

It was easy to identify that there was no way to make a microloan to a specific entrepreneur in the developing world. It wasn't easy to figure out how to make it possible.

Thus began a year of phonecalls and meetings with microfinance experts, lawyers, economists, Internet experts, and anyone else who would listen to their idea of lending to low-income entrepreneurs via the internet. After much questioning and a lot of skepticism they finally decided to just begin.

In March 2005, through a local contact in Uganda, 7 loans were posted on Kiva for a total of $3,500. They included a goat herder, a fish monger, a cattle farmer and a restauranteur. Six months later every loan had been repaid. These original 7 entrepreneurs became known as the "Dream Team" and proved it was possible to lend to the poor over the Internet.

In October 2005 Kiva announced to the world the first peer-to-peer microlending website via a press release. Shortly after the Daily Kos discovered Kiva and broadcast the website to hundreds of thousands of its readers. The word was out... and the rest is history.

Since its birth Kiva has grown from a small personal project to one of the world's largest microfinance facilitators, connecting entrepreneurs with millions of dollars in loans from hundreds of thousands of lenders around the world.