Over the past few months, I’ve spent a lot of time speaking with our partners, reporters and investors about the potential of Prosper to transform the world of finance and banking. Online marketplaces have transformed the way we take taxis, rent hotel rooms, buy books and sell goods. Now, online marketplaces like Prosper are transforming the way people borrow and invest money.
There’s no greater proof of this transformation than the growth we’ve seen at Prosper over the past year and a half. We finished June with over $145M in loans issued through the Prosper platform. This is up from $124M in May and up 400% from a year ago. In fact, more loans were originated through the Prosper platform in Q2 of 2014 than in all of 2013 combined. We’re also extremely proud of the fact that Prosper now has about 35% market share in our industry.
Since our last update on this blog, Prosper Marketplace secured another $70M in funding from investors including Francisco Partners and Institutional Venture Partners. This will be used to accelerate our growth and expansion. Prosper Marketplace recently added a number of key positions, including Itzik Cohen as VP of Business Development, Dawn Piper as VP of Human Resources, as well as new product managers and engineers, with more to come.
One of our biggest initiatives moving forward is something we call “Education, Awareness and Understanding.” As more people learn about borrowing and investing through online marketplaces, they are increasingly understanding that it is an innovative, easy, and fast financing option beyond the traditional avenues.
- Nigel W. Morris – Nigel is the Co-Founder of Capital One Financial Services and is the newest member of the Prosper Marketplace board. Nigel helped build Capital One Financial Services in 1994, and during his decade-long tenure as President and Chief Operating Officer, Nigel was integral in developing the information-based strategy that revolutionized the consumer lending industry. Nigel is a maven in trends and technologies that affect the world of credit, and his experience in building a household name in financial services makes him a crucial asset on our team.
- Itzik Cohen - Itzik also joined Prosper Marketplace in June as VP of Business Development and is tasked with overseeing all aspects of partnerships, strategic business, and corporate development, including Channel management, customer acquisition and growth. Prior to Prosper Marketplace, Itzik was founder of ClipSync, a leading interactive video platform, and served as its Chief Executive Officer. Before ClipSync, Itzik was a part of the early team at WebEx Communications where he focused on strategic business and corporate development. Prior to his business life, Itzik was a professional basketball player in the Euroleague playing for Maccabi Tel-Aviv, a 5 time EuroLeague champion and served in the Israeli Air Force.
- Dawn Piper – We are also thrilled to welcome Dawn as Prosper Marketplace’s VP of Human Resources. Dawn will oversee all aspects of HR for Prosper Marketplace, including payroll/benefits, training of talent, and development and cultivation of the company’s culture. Dawn comes to us from Yahoo, where she was VP of Business Planning and Operations for Talent Acquisition. At Yahoo, she was responsible for recruiting top, transformative talent to the company. Prior to Yahoo she held various HR leadership roles at RPX Corporation and Linden Labs, the online virtual world known as Second Life.
Focus on Service
This past year, we’ve been working on streamlining the customer service process to support our awesome growth, and to better understand how we are doing, we’ve implemented tools that will allow us to benchmark and compare our service to other industries and other companies providing world-class customer service.
To help us better serve both our borrowers and our investors, we’ve opened a new Service Center in Phoenix, AZ. The expanded verification team will vastly improve processing time of new loans and allow us to service more borrowers as our growth continues to accelerate.
We have several exciting initiatives in the pipeline for the second half of 2014; one major focus is the mobile experience, which we are updating on both the borrower and investor sides. We are also developing tools for both borrowers and investors that will allow them to better track their money in the system. Lastly, in line with our focus on Education, Awareness, and Understanding, we will be redesigning our blog to make it easier for us to deliver helpful content to our community.
- $145M in loans issued throughout the month of June
- Average loan size increased from $10,540 in 2013 to $13,132 in the last 60 days
- Nigel W. Morris, Co-Founder of Capital One Financial Services is brought in as the newest Prosper Marketplace board member
- Opened new service center in Phoenix, AZ
- 2014 Q2 originations were greater than all originations in 2013 combined
- Prosper Marketplace secured $70M in funding led by Francisco Partners
- Increased listing balance between borrowers and lenders
- Released new infographic regarding debt reduction options
- Prosper Marketplace hired 28 people in the last several months, bringing total number of team members to 125.
Articles of Note in June
- “7 Reasons Why You Should Consider Investing in Strangers Online” by Lend Academy
- “How to Try Peer to Peer Lending (with $2,000)” by LendingMemo
- “Is Peer-to-Peer Lending Safe?” by NASDAQ
Prosper Funding LLC (“Prosper”), headquartered in San Francisco, is a leading online marketplace for consumer credit. Prosper Marketplace, Inc. (“Prosper Marketplace”), founded in 2006, is the parent company of Prosper Funding LLC.