Based in San Francisco, California, Lending Club is a peer-to-peer lending company that can register their offerings as securities with the U.S. Securities and Exchange Commission. Lending Club has raised $125 million in funding from Google and Foundation Capital. This gave Lending Club a valuation of $1.55 billion.
Google will get an observer seat as part of this round of funding. Other board members in the company includes Mary Meeker of Kleiner Perkins, former Morgan Stanley CEO John Mack, and former U.S. Secretary of the Treasury Larry Summers. Google acquired shares from an existing investor in the company. Lending Club raised $17.5 million from Kleiner Perkins last year, hitting slightly under $100 million in outside funding. Since this is a secondary round, Lending Club did not raise any new money, according to TechCrunch. Google and Foundation Capital were simply buying out early investors.
Lending Club brings borrowers and lenders together without involving banks in the process. Lending Club has overseen $1.65 billion in loans. In the last quarter alone, they saw $350 million in loans made through their platform. The company has seen 22 consecutive quarters of positive returns. This year, the company expects to see $2 billion in loans alone. Lending Club has a subsidiary called LC Advisors. LC Advisors is an SEC Registered Investment Advisor that has several funds in place with over $450 million in assets under management.
?Lending Club is using the Internet to reshape the financial system and profoundly transform the way people think of credit and investment? stated Google VP of corporate development, David Lawee. ?We are excited to be a part of it.? Google made this investment through Google’s late-stage investment arm, not Google Ventures.
Lending Club became cash-flow positive for the first time last year and they hired around 50 new employees. The company is also planning on going public sometime in the near future. Most likely it will happen in 2014.