A JOURNEY OF TWISTS AND TURNS

RAIStogether was a conceptional idea that University of Delaware alumni and RAIStogether Founder, Don Ainsworth introduced as a potential 2022 student senior project for the Thayer School of Engineering at Dartmouth College. Ainsworth served as an adjunct instructor at there at the time. So, it all started with four Dartmouth College students who created an application prototype based on Ainsworth’s idea.

Ainsworth is no stranger to entrepreneurial ventures. After graduating from UD with a bachelor's in mechanical engineering in 1998, he studied entrepreneurship at the University of Maryland's Smith School of Business. He has since led a series of enterprising ventures all while working in several notable companies primarily in continuous improvement and operations.

Ainsworth’s idea was an application to connect small-dollar investors, or microloans with qualified startup entrepreneurs and businesses in remote global areas. The initial idea specifically addresses the problem of Ugandans and other like-remote economies where the globally underserved populations lack access to capital resources to support micro-businesses and localized economic growth.

Ainsworth's inspiration for Uganda comes from being a long-term board member of Reach for Uganda, an organization positioned in the US to help Ugandans through education, and being a member of the Crystal City-Pentagon Rotary Club, Arlington, Virginia, and being a Rotarian interested in service above self.

In the fall of 2022, Ainsworth brought the application to The University of Delaware’s Spin In® Program. Spin In is an integral program component of the Office of Economic Innovation and Partnerships (OEIP); in that, Spin In showcases the interdisciplinary approach for early startup ideas to grow. Essentially, entrepreneurs or research faculty utilize their innovative ideas as a basis for assembling a product development team, usually comprised of undergraduate students, all eager to apply classroom knowledge in a real-world practicum and build workforce readiness skills. The early innovators and entrepreneurs who participate in this multi-semester experience gain as much as the students they mentor

What makes the app's concept of microlending unique?

 In globally remote areas there is a lack of credit ratings, credit scores, or FICO scores all of which make approval for loans more difficult. Additionally, extremely high interest rates and cultural differences cause misunderstandings between lenders and borrowers. These issues could no longer be overlooked with the data suggesting a budding generation of millennials in the developed world ready to lend financial resources to contribute a positive impact. A micro-lending concept was driven by the plethora of people in globally underserved areas who have ideas to fulfill but lack resources.

Ainsworth partnered with Georgetown University to study alternative means of determining creditworthiness. The study revealed that this divide can be bridged through character-based lending where credibility can be built up through reputation or more qualitative measures rather than purely numbers-based algorithms. It is relatively new and untested but merging this idea with other lending strategies provides a pathway forward. This understanding meant the platform's success depends on a way to forge genuine relationships between both sides of the transaction to ensure greater access and lower delinquency rates.

Team Challenges

Just as the team began work in the fall of 2022, it surprised everyone that Ainsworth’s good friend, colleague, and RAIStogether co-founder Phil King passed away after a short illness. Phil was known as the technical guy to the group, so, the team lost not just the technical know-how but access to the server and all resources around the original prototype. The sudden change of events gave rise to opportunity but not after many details were re-examined.

At first, the team attempted to retrace several possible routes to use the few resources still available but eventually, in the winter of 2022-23 additional consultants helped to focus on new directions, especially on the technical aspects of the application and a new financial model Ainsworth framed as character-based lending.

Vijaya Rao, a Technology Executive/Entrepreneur with a board focus on financial growth, cybersecurity, and technology, joined the team as a Lead Mentor after the sudden loss of Phil King. Rao’s expertise was pivotal to getting the team to a speedy, back-on-track strategy. Rao brought the team together to transition the previous prototype to a progressive web application, and the student team began working towards the company’s eventual go-to-launch plan. It was a new start for everyone on the team.

Despite the numerous challenges, the team delivered a technical requirements document detailing the current functionalities of the prototype and recommendations for further requirements and enhancements of the product. Additionally, the team provided a go-to-market strategy, providing advice on market penetration for the continual group of the company. Lastly, the team redesigned the entire company website and furnished Ainsworth with dashboard templates for use in the application.

Rao shared “No one expected to encounter all of the new starts to the project. It was not our intention, but it was like we built a new company since we could include insights and new financial considerations for a go-to-market strategy. We improved on it, and it's no longer a vision on paper. It's in execution.”

The team’s experiences?

 The student mentor, Darius Browne, is a 2023 graduate with a master’s in international business and is a longtime Spin In Project Manager. He assisted the team to keep pace and to navigate the many challenges. Browne spoke of learning how to adapt during the project continually. As a mentor, he relied on concepts learned in the classroom to keep the students engaged and motivated as they navigated changing challenges together. He speaks fondly of the project, noting the experience enhanced his project management skills and taught him the importance of remaining agile and adjusting to the dynamic needs of a start-up company.

Naveen Bharadwaj is a 2023 graduate with a master’s in electrical & computer engineering who also devised the application dashboards so that the app would be interactive and allow both parties, lenders and borrowers, to participate in the process. Bharadwaj worked on the principle of If you feel more engaged, you'll be more involved.

Bharadwaj’s work with RAIStogether expanded his knowledge in design and other areas such as marketing and database management. This experience also imparted valuable lessons in time management and quick decision-making.

Matt Searfass, a 2023 graduate with a bachelor’s in computer and information sciences and a minor in English joined the team as they were reorganizing and contributed to redesigning the system's backend framework. He graciously researched and brought his information and knowledge to the team to support the new progressive app. Searfass also leaned on his English minor to assist in the website development. Searfass shared, “As a bunch of engineers, most of us never experienced the entrepreneurial approach. Tasks would arise quickly; we would meet as a team, find where our strengths were, and we divide the work accordingly. It was a fast-paced 10-year experience in a couple of months. UD students should consider the opportunity for themselves.”

Prateek Gupta, working towards a master’s in business analytics and information management with an expected graduation in 2024, interpreted Ainsworth’s ideas around character-lending and impact-lending. These lending concepts are currently not considered in lending models and have little data supporting loan repayment. What Ainsworth wanted was a credibility factor built into the application. For Gupta, he shared, “The Spin-in program provides a collaborative platform for students and entrepreneurs to work together. The team gained exposure to real-world assignments, cross-functional learning, meeting deadlines, and working in resource-constrained environments. This experience and a conventional degree will give me an edge when returning to the corporate world with my master's. I have applied my past marketing experience and current course work in analytics to suggest future business strategies to a fintech start-up.”

Ishaan Thakker, the back-end developer for the project, is a recent 2023 graduate with a bachelor's in computer science and a minor in economics. During the Spin In Showcase, Thakker remarked about learning several new technologies like FastAPI Express and PostgreSQL. He also shared his appreciation for the hands-on experience of learning how the different front-end and back-end components come together in an application. 

Dileep Reddy Nimma, a recent 2023 graduate with a master’s in computer & information science, was the team's front-end developer. For RAIStogether, he worked to transition the prototype concept to a progressive web application and develop intake forms collecting information to create screen borrowers. During his final semester, he accepted an external internship as a software developer for a software development and technology consulting company.

What's next for Ainsworth and RAIStogether?

According to Ainsworth, the goal is to have a soft launch by the end of the summer. He plans on giving 100 of his closest friends and family an early look on August 30th. This test drive will allow the team to solicit candid feedback to improve the application. A formal launch is planned for Monday, October 9, 2023. Ainsworth’s progress with RAIStogether can be viewed by visiting www.RAIStogether.com.

Office of Economic Innovation & Partnerships (OEIP)  

Office of Economic Innovation and Partnerships (OEIP) is an economic development portal that connects outside entities to university knowledge-based assets to stimulate a culture of innovation and entrepreneurship among UD students, faculty, and partners to contribute to the state and region’s social and economic development. OEIP acts as a focal point for resources and advisory services to support the cultivation of early-stage companies and industry partnerships. With a focus on discovery, OEIP assists in the development and commercialization of intellectual property assets into marketable opportunities and/or new businesses. OEIP offers the Spin In® program that stimulates innovation and entrepreneurship