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.
Whew! What an incredible journey it has been. This past year has been monumental for Prosper as more and more people experience how easy it is to borrow and invest with people just like you. We’ve evolved from a small disruptive force in the lending industry into a major voice in the finance market. We’ve developed a vibrant lending community where people invest in a full spectrum of projects and people that they truly believe in, and we’ve transformed our social media presence into a hub for all things regarding personal finance and peer-to-peer. We have grown over 600% in the last year as people have turned to peer-to-peer loans for everything from cutting credit card debt to helping with small businesses, vacations and home improvement projects. To date, over 93,000 people have taken a loan through Prosper, and more than 75,000 individual investors have invested money through the platform.
Everything has led up to this moment. Next week, Prosper will cross the $1,000,000,000 mark in personal loans originated through Prosper.
And it was all made possible by you.
To give back to our ever-growing peer-to-peer lending community, we’re going to give away $1,000 to both a lucky borrower and lucky investor, every day for two weeks, starting tomorrow.
Here’s what you should know:
First, if you haven’t already, like us on Facebook and follow us on Twitter.
Each day for the next two weeks, we’ll randomly select one active Prosper borrower and one active Prosper investor.
The selections will be announced via Facebook and Twitter (which is why you have to like/follow us).
We’ll announce the winner using Prosper Screen Names (find yours by logging into your account and selecting “Settings”).
If you are one of our lucky winners, you will have 24 hours to contact Prosper and receive the $1,000 reward. Contact us at Thanks@prosper.com to claim your reward.
That’s all there is to it… Like us on Facebook, follow us on Twitter and then check back daily to see if you’ve been selected to win some cool cash along with other news relevant to personal finance. And thanks again to each and every one of you in our community – here’s to the next billion!
- The Prosper Team
* Information About the Prosper “Thanks a Billion” drawing:
ELIGIBILITY This promotion is open to Eligible Participants. An Eligible Participant is a current Prosper member with a current or paid-off loan in good standing, or a Prosper investor with an investor account balance greater than zero, as of 12PM PST, 3/27/14
PROMOTION Selected winners who respond to email@example.com within 24 hours of their selection will receive $1,000.
DOLLARS CREDITING The $1,000 earned will be deposited to your Prosper investment account or to the bank account associated with your Prosper Loan within 1 week of being selected as that day’s winner.
PARTICIPANT’S BANK ACCOUNT The selected winners must have a valid bank account in the continental US, Hawaii or Alaska at Prosper.
DISQUALIFICATION Prosper reserves the right at its sole discretion to disqualify any individual from the Promotion. Cancelled loans are not eligible for this promotion, and, in that event, Prosper reserves the right to cancel the credit issued to you under this promotion.
LIABILITY By participating in this Promotion, each Eligible Participant acknowledges and agrees that Prosper: (i) shall have no liability of any kind whatsoever with respect to this Promotion; (ii) make no warranty, guaranty or representation of any kind concerning the winnings; (iii) disclaim any implied warranty; and (iv) are not liable for injury, loss or damage of any kind resulting from an Eligible Participant’s acceptance or use of the award or otherwise from such Eligible Participant’s participation in this Promotion. If an act, omission, event or circumstance occurs which is beyond the reasonable control of Prosper and which prevents Prosper from complying with these terms and conditions, Prosper
will not be liable for any failure to perform or delay in performing its obligation.
TERMINATION OR SUSPENSION Prosper reserves the right at its sole discretion to, without advance notice, terminate or suspend this Promotion, in whole or in part, or modify it in any way. This promotion is void where prohibited or restricted by law.
We’re a little over a month into the New Year and already it’s shaping up to be another year of growth and momentum for both Prosper and the peer-to-peer finance industry. January was our biggest month ever, with a total of $67.06 million in loan originations. This momentum follows a very successful 2013, where we grew from just $9 million in loan originations when the new management team took over Prosper Marketplace in January, to $59 million in loan originations in December. Even more importantly in 2013, we focused on improving our customer experience for both borrowers and lenders, stabilizing the company, and setting ourselves up for continued growth in 2014.
Our goal since day one has been to provide a marketplace that disruptively changes the way borrowers and lenders gain access to personal lending and we remain steadfast to that goal as we head into 2014. To that end, we are investing heavily in product enhancements, great customer service, and an emphasis on our retail investors.
Commitment to All Investors
I have gotten a lot of questions and comments recently about the increase of institutional money in peer-to-peer lending. Over the past year, we essentially went from zero to 65% of the platform’s loans being sold to institutional lenders. Retail lenders are and always will be an indispensable component of our business. However, bringing on these institutional lenders was important to our ability to grow and scale. They added what we call “lender stability” to the platform and it allowed us to go out and market to borrowers with confidence that the loans would likely be funded quickly.
Despite that, we feel that the right balance between institutional and retail lender volume has not yet been achieved. In 2014, the goal is to enable retail lenders to get access to more loans in which to invest. Some of the ways that we are doing that is by limiting institutional access to the fractional loan pool and by simply not accepting new institutional money on the platform. I hope that as the year progresses, retail lending will invest in a meaningful percentage of the loans originated through the platform as we grow our overall volume.
We will continue to look at new ways to improve the retail lending experience and to grow loan volume and therefore make investing in loans easier. We are looking at new avenues to attract more borrowers to the site, including expanding our marketing channels with additional advertising and direct marketing. We are also exploring new partnerships that would give us valuable exposure to potential borrowers with innovative offers.
Finally, I want to address the removal of the Loan Description and Loan Details fields. In September, we addressed many of your questions and concerns on this topic. It’s something we were testing on the new borrower application and we hadn’t made any firm decision to permanently remove at that time. After an additional five months of testing, and the rapid growth we have seen since this change, we have decided to make the change permanent.
A look back at 2013
As I mentioned, 2013 was a great year for Prosper and the industry in general. We closed December with $59,775,615 in loans issued for the month, which is a 17.56% increase over November, 2013 and an astounding 522% increase over December, 2012. In 2013 a total of $357,437,811 in loans were originated through the platform, a 133% increase over 2012 and a 376% increase over 2011. You can see the growth demonstrated in the graph below.
We also made important changes to the business. Over the course of 2013, Steve, Ron and I recapitalized Prosper Marketplace, restructured the Board, and reorganized the management team into a group of focused professionals with a collective purpose. We also implemented customer-oriented solutions that helped to stabilize and legitimize the business. Some of the things we did include:
Established protection for all of the platform’s lenders regardless of size, by forming a new legal entity called Prosper Funding LLCProsper which is a wholly owned subsidiary of Prosper Marketplace and is now the owner of all loans tied to Notes and the issuer of all Notes on the Prosper platform.
Prosper Marketplace entered into an agreement to settle the class action lawsuit allowing us to move forward and focus on growing the business.
Brought on Institutional class customers to the platform to provide lender stability.
Improved the platform’s borrower experience and the technology infrastructure.
Hired a new Chief Product Officer of Prosper Marketplace and reoriented into a product focused organization.
Transitioned the platform over to the FICO 08® scoring model. This change more directly aligns Prosper with industry standards and enables us to better meet borrower expectations with rates and offers.
Scaled Prosper’s customer service operation to better meet the needs of both sides of our platform.
As we look ahead, we’re extremely optimistic about our growth, and project that loan originations will average just above $100M per month. We look forward to bringing our customers even better products and services, and continue to value your feedback.
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.