Prosper Secures an Additional $20 Million
Series C Financing led by DAG Ventures and Meritech Capital Partners
SAN FRANCISCO–(BUSINESS WIRE)–Prosper(www.prosper.com), America’s first people-to-people lending marketplace, today announced the closing of a $20 million Series C financing round led by DAG Ventures and Meritech Capital Partners with participation by existing investors: Accel Partners, Benchmark Capital, Fidelity Ventures and Omidyar Network. This financing brings the total amount of capital raised by Prosper to $40 million.
“Prosper is well positioned to capitalize on a tremendous market opportunity,” said Paul Madera, Managing Director of Meritech Capital Partners. “Prosper has the team, technology, and long-term drive to transform the multi-billion dollar consumer lending industry.”
“An enormous market opportunity combined with a terrific business model is a recipe for success,” said John Cadeddu of DAG Ventures. “We think Prosper has both of these ingredients. But more importantly, we believe Prosper has the team to build an enduring, leading company.”
“We are appreciative of our new and early investors for their support and commitment,” said Chris Larsen, Co-founder and Chief Executive Officer of Prosper. “This latest round of financing provides us with considerable resources toward maintaining our leadership position and continuing to rapidly grow the Prosper marketplace.”
Since launching in February 2006, Prosper’s membership has grown to over 330,000 individuals with $70 million in loans funded in the Prosper marketplace. To find out more about Prosper, visit www.prosper.com.
Prosper (www.prosper.com), America’s first people-to-people lending marketplace, was created to make consumer lending more financially and socially rewarding for everyone.
The way Prosper works is intuitive to people who have used eBay. Instead of listing and bidding on items, people list and bid on loans using Prosper’s online auction platform. People who want to lend on Prosper set the minimum interest rate they are willing to earn and bid in increments of $50 to $25,000 on loan listings they select. In addition to criteria commonly used by institutional lenders, such as credit scores and histories, people who register as Prosper lenders can consider borrowers’ personal stories and group affiliations. Groups on Prosper are critical to bringing people together for the common goal of borrowing at better rates. People who want to borrow on Prosper create loan listings for up to $25,000 and set the maximum rate they are willing to pay a lender. Then the auction begins as Prosper lenders bid down the interest rate. Once the auction ends, Prosper takes the bids with the lowest rates and combines them into one simple loan to the borrower. Prosper handles all on-going loan administration tasks including loan repayment and collections on behalf of the matched borrowers and lenders.
Prosper was co-founded by Chris Larsen, co-founder of E-LOAN, and John Witchel, technology entrepreneur. Prosper’s marketplace platform is patent pending.