American P2P lending marketplace Prosper raises $70M for growth

By VCPOST Staff Reporter

May 05, 2014 08:16 AM EDT

Peer-to-peer (P2P) lending marketplace has secured $70 million in a recent funding with private equity firm Francisco Partners as the lead investor. Institutional Venture Partners (IVP) and Phenomen Ventures also contributed to the round, according to TechCrunch.

Prosper became the pioneer in P2P lending in the US when it launched in 2006. Its monthly platform originations have already achieved significant growth from $9 million in January last year to more than $100 million as of April 2014. Chief executive officer (CEO) Aaron Vermut said the company currently has a very solid standing in the market, the report relayed.

While its rivals have been aiming for an initial public offering (IPO), Vermut said Prosper's focus is still elsewhere: "We are focused on building the business and building a company for the long-term. We think we've made great progress so far, and we're very optimistic about our future growth."

In the past year, Prosper has been increasing the efficiency of its lending product and building its borrower and lender base. One of its main competitors is Lending Club, which has recently branched out to business loans. Prosper, on the other hand, has no similar expansion plans but is currently focusing on the consumer credit market, TechCrunch reported.

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