Lending Marketplace Prosper Locks Down $25M From Sequoia, BlackRock

Prosper, a peer-to-peer lending platform, announced today that it has raised an additional $25 million. The round was led by Sequoia, a longtime investor in the company, with participation from BlackRock.

 

The $25 million raise might feel oddly timed, as Prosper raised $20 million this January, a month that also saw it shake up its leadership team, including the installation of a new chief executive officer. Prosper, launched in 2006, had raised $94.9 million prior to today’s new cash infusion. Including the new funds, Prosper has accepted a total of $119.9 million in outside money.

According to the company, today’s funding was not raised out of duress, but was instead a component to the new direction it kicked off in earlier this year.

 

The Prosper story is simple: The $20 million and new management team that came this January were bets that its business model had legs, and was worth pursuing. If things went well, more funds would be made available. And following a period of strong growth, Sequoia was willing to hand over more.

 

Loans executed on the Prosper platform totaled $9 million in January this year. In August that figure had risen to $32 million. That is almost a quadrupling in less than a year. On a 12-month run-rate basis, Prosper is seeing loans executed of more than $360 million on its platform. Prosper’s website claims that it has lent a total of $630 million in its life. So the company’s current yearly pace is essentially half its lifetime total.

 

To learn more, please visit Prosper.com or read the entire article on TechCrunch