Prosper is a website where individuals that are looking for loans are connected to people that are interested in providing them. Prosper has raised $70 million in funding from private equity firm Francisco Partners. Institutional Venture Partners and Phenomen Partners also participated in this round. David Golob, an executive at Francisco, will join Prosper as a director.
Prosper is considered the second largest peer-to-peer lending platform with around 35% of the market. Its platform originated $1 billion worth of loans as of last month and is expecting to double that by the end of the year. Some of this funding will be used for expanded marketing campaigns, including online advertising and direct marketing focusing on debt consolidation. It will also be used for developing new types of loans.
This is the second recent major investment in a peer-to-peer lending company. Last month, Lending Club raised $115 million in equity and debt. Lending Club used that investment to acquire another company called Springstone Financial.