We’ve just wrapped up 2014 and what a year it has been for everyone in our industry. First and foremost we want to say thank you to our customers, partners and investors. We could not have done it without you.
One of the big highlights of 2014 was our $2 Billion Strong Photo and Video Contests. We heard amazing stories from every corner of the country that reminded us of why we do what we do everyday. If you haven’t had a chance to check out the gallery, the videos and photos are still available on our Facebook page. In addition to the winners, here are a few more of my favorite videos:
In December, we reached $205 million in loan originations through the Prosper platform – our largest month ever and a great finale to the year. In total in 2014, there was $1.6 billion in loan originations on the Prosper platform and more than 123,000 people have turned to the platform for loans for everything from home improvement to debt consolidation to medical procedures as highlighted in the videos and photos above. We’re thrilled by the opportunity and humbled by the momentum and potential of our company and our industry. You may wonder why we are seeing such uptick and growth. There are a number of reasons:
Awareness — Word is getting out that people have alternatives to credit cards and traditional bank loans to get access to credit. As a result, lending marketplaces are becoming mainstream, much like ridesharing and other innovative online marketplaces are becoming more popular.
Quality — At Prosper we have a proprietary formula for assessing the risk of our borrowers with verification and validation of a host of criteria. Our first time borrowers fall within the prime or super-prime range, with an average FICO score between 700 and 710. This means investors can have confidence in the system, and everyone benefits. On average, our investors earned about 7 percent in 2014.
Convenience — In addition to low rates, one of the biggest benefits for borrowers is the ease and speed with which they can get loans online: 4-5 days rather than the 10 days or more it could take getting a traditional bank loan. Our customers also love the flexibility of online borrowing; we work around your schedule.
Partners — Prosper works with a number of partners, which include credit education sites, airlines and mortgage originators that help us get the word out about the benefits of working with Prosper. We continue to look for new companies that we can partner with to help our mutual customers.
Repeat visitors — After experiencing Prosper, many of our customers have started turning to us again for help through the various moments in their lives when they need financial support – medical bills, wedding expenses, travel costs or a second-car.
We’re building a strong community, with quality borrowers, confident investors and a growing numbers of partners. And we’re expanding our company and investing in people to meet the demand for services. Prosper Marketplace is up to 240 employees, with a thriving new office in Phoenix and new headquarters in San Francisco. And we’re going to keep growing — Prosper Marketplace is looking to add significantly more people to its team in the coming year.
But one thing that remains constant is our focus on the community we’ve built through our marketplace. So you’ll see new services and features coming in 2015 that are designed to enhance the borrowing and lending experiences even more – area like mobile access, and even faster verification and validation.
It’s been a fantastic journey so far, and we’re grateful to our customers, partners and investors that have joined us. We feel this is only the beginning, so stay tuned for more in 2015.
CEO, Prosper Marketplace
 Average FICO score for first-time borrowers who obtained loans in 2014
 Average investor return of about 7% is based on estimated return of loans originated in 2014
 Average time Prosper borrowers obtain loan based on loan originations in 2014
This is an historic moment. Lending Club debuted on the New York Stock Exchange this morning, becoming the first online credit marketplace to go public. It’s a huge validation for the industry and will bring an increased level of awareness and education about the space. We want to congratulate them on a successful IPO.
When Prosper pioneered the market more than eight years ago, the scenario was quite different. The idea that people had an alternative to borrowing from banks was novel, and even scary for some. Today, more than 250,000 have borrowed over $2 billion from individual and institutional lenders through the Prosper marketplace. We’re one of the fastest growing credit marketplaces, with loan originations on the platform up 420 percent over the last year (Q3 2014 vs. Q3 2013). It took us eight years to cross the first $1 billion in loans on the Prosper platform (announced in April 2014), and just six months later, in October, we announced the $2 billion milestone. Clearly, marketplace lending is moving into the mainstream as people see it as an easier, more cost-effective alternative to traditional bank lending. This week’s activities only confirm this.
The market is only getting bigger. We may have started out helping cash strapped consumers to consolidate their credit card debt, but today, people are turning to us when they need money for special occasions, home improvements, a second auto, and many other everyday and lifetime events. Online marketplaces have transformed numerous industries — retail, lodging and travel, to name a few. Prosper saw a need for similar innovation in the financial services and lending industry — where borrowers are subject to high interest rates and fees and layers of paperwork, and diversity and yields are limited for investors. By opening up the market and connecting investors and borrowers directly, we smooth out and bring transparency to a seemingly arbitrary process. Competition in the lending market means more options for everyone. And for consumers, more choice means better rates, lower payments, improved customer service and increased ease of use.
We’re excited about 2015. We have more than 200 employees and we’re hiring many more, including recent top executives recruits who bring a wealth of experience and diversity. We raised $70 million this year (nearly $200 million total) to help us target a market that is expected to top $9 billion in loans this year. And we plan to roll out new features and functionality, further supporting mobile and expanding partnerships. We’re laser focused on offering consumers the simplest and most efficient customer experience on a platform they can trust.
As always, thank you to the Prosper community for getting us to where we are today. We are inspired by your stories and look forward to hearing many more in 2015.
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.