P2P Lending Company Prosper Raises $25 Million

Posted Sep 26, 2013

Prosper is a peer-to-peer lending company that has raised $25 million in funding.  This round of funding was led by Sequoia Capital and BlackRock.  This past January, Prosper raised $20 million and named a new CEO.  Founded in 2006, Prosper raised a total of $94.9 million before this round.

The reason why there was a short gap between the funding round in January and this past week was because that round was to prove that the business model was worth pursuing.  If the company grew, then more funds would be made available.

Loans that took place through Prosper’s platform hit around $9 million this year.  As of August, the figure jumped to $32 million.  Based on a 12-month run-rate, Prosper is seeing loans hit over $360 million through the platform.  The company lent out a total of $630 million since launching in 2006.  The $25 million round of funding will go towards accelerating their growth.

Prosper has over 1.9 million members and they allow people to invest in each other in a way that is financial and socially rewarding.  Borrowers list loan requests at between $2,000 and $35,000.  Individual investors can put in as little as $25 in each loan listing they select.

[Source: TechCrunch]