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.
To stay updated on the progress of all these great initiatives, please stay tuned to our blog, or follow us on Twitter (@ProsperLoans) and Facebook. Thanks as always for your comments and feedback.
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.
You don’t help people with over $600 million in debt consolidation loans without learning a little about how people try to deal with their credit card debt. We’ve learned that good, honest people often get into debt trouble due to circumstances completely out of their hands, and often get stuck there due to all of the conflicting advice, the overwhelming amount of bills, and a lack of financial know-how regarding debt management.
There is also an ever-increasing pool of services available for debt relief – some of them work, while others put you in a bigger hole than ever before. Regardless of what “miracle methods” out there may claim, there is no one-size-fits-all-solution, and getting out of debt always requires a little discipline, self-control, common sense, and patience.
With debt being such a central issue in today’s economy, we have put together this infographic that examines the scope of debt, and gives a brief overview of some of the most popular avenues to help manage it.
If you or anyone you know is interested in a debt consolidation loan, they can get a free, no-obligation quote from Prosper here: http://pspr.co/gI
Just one month after announcing that we crossed $1 billion dollars in loans, I’m happy to report that we’ve hit another significant milestone. In April, a record $100 million in loans was originated through the platform. This is up 400% from one year ago and 30% month-over-month. More importantly, it is indicative of the incredible momentum we’re seeing for peer-to-peer lending as more people turn to Prosper to fund large purchases, start a small business or refinance high-interest debt.
Along with this rapid growth, Prosper has continued to invest in customer service. It is our intention to offer borrowers and lenders the absolute best customer service. To accomplish that goal, we have been hiring the right team members, streamlining operations and improving our technology infrastructure to continually deliver a faster and more transparent borrowing and investing experience. I look forward to sharing a number of enhancements to member communications, mobile functionality and member benefits along with profiles of several new members of the Prosper team in the coming months.
In April, Prosper also welcomed Macy Lee to the Executive team as the Chief Financial Officer. Macy has a proven track record of helping businesses grow from early stage to established industry leaders. Most recently, she was CFO of eBay Australia, the country’s largest eCommerce site. In that role, she was responsible for Controllership, FP&A, Strategy, Business Analytics, and Facilities, and was instrumental in defining and executing its business strategy. Prior to her position as CFO, Macy spent nearly 11 years in various finance and business roles at PayPal and eBay, as well as Oracle, Target, and Sichuan Provincial Economic & Trade Commission in China.
As we head towards early May, we are busy gearing up for the second annual LendIt 2014 conference, being held May 4-6th in San Francisco. Once again, Prosper is a leading sponsor and President Ron Suber will deliver the first day’s closing remarks, with a presentation titled: From Disruption to Revolution: The Tipping Point of Online Direct Consumer Lending. We will post a video of his speech following the conference. For more info on the conference you can visit www.lendit.co.
As always, thanks to everyone for their involvement on our platform – the amazing growth we have seen in the last 15 months would not have been possible without you. Please keep the feedback coming, and check back for more good news in the near future.
As of yesterday, the Prosper Gives Back campaign has come to a close. After hitting our $1 billion dollar mark, we connected with the whole Prosper community, we spoke with you guys, and we celebrated our butts off! While giving out $2,000 a day was exhilarating and fun, the greatest reward to us was hearing from the individuals in our community and finding out how Prosper impacted their lives. Hearing that we were able to make a difference in someone’s life, no matter how small, is the reason why we started in the first place.
We compiled the most insightful, interesting, funny, poignant, and thought-provoking Tweets and posts about the giveaway, and let them tell the story:
It started with a quiet announcement on our social media sites, and immediately community members hopped aboard and helped trumpet the announcement to the world!
So thanks again everyone for talking to us and making Prosper what it is today, we hope you’ll stay tuned to our social media sites for ongoing personal finance tips and articles, and let us know in the comments below what kind of content you care about most. Continue leaving us feedback and comments on our Facebook and Twitter – we read and value each and every post! We look forward to the next opportunity to connect with you again.
We crossed over the $1 billion mark in peer-to-peer loans. Its been a long road since the first loan in 2006. Since then the $1 billion dollars issued through Prosper went towards helping people fix their debts, pay medical bills, chase their dreams, and much more. The greatest thing about it? That $1 billion came from people who truly wanted to help others’ financial situations, while simultaneously helping themselves.
We’re a billion dollars closer to showing everyone in the U.S. the new way of doing personal finance, and we couldn’t do it without you. We are excited to hit this milestone but it’s just the beginning! We are looking forward to hitting the $2 billion milestone this year as well. We love being in the business of bringing people together to help each other, and we hope you stay in touch as we become the biggest peer-to-peer lending community in America.
Notice: Blogs and other materials posted on or linked from this page that use the name "Prosper" generally use that name to refer to Prosper Marketplace, Inc. if published before January 31, 2013 and to refer to Prosper Funding LLC if published on or after February 1, 2013.
As of February 1, 2013, the Prosper marketplace was transferred by Prosper Marketplace, Inc. to Prosper Funding LLC, a wholly-owned subsidiary of Prosper Marketplace, Inc. From and after February 1, 2013 Prosper Funding LLC is the sole obligator of Notes offered and secured by loans made through the Prosper marketplace, including Notes originally issues by Prosper Marketplace, Inc. prior to such transfer. Prosper Marketplace Inc. contiinues to provide services to Prosper Funding LLC relating to loan and Note servicing, and may interact with borrowers and investors in relation thereto as agent of Prosper Funding, LLC. Except where otherwise noted, throughout this website "Prosper" refers to Prosper Funding LLC including acting directly or through its agents.
All personal loans are made by WebBank, a Utah-chartered Industrial Bank. All Prosper personal loans are unsecured, fully amortizing personal loans.
Notes offered by Prospectus. Notes investors receive are dependent for payment on personal loans to borrowers. Not FDIC-insured; Investments may lose value; No Prosper or bank guarantee. Prosper does not verify all information provided by borrowers in listings. Investors should review the prospectus before investing.