Company Overview

Prosper Loans Marketplace is a leading online destination for borrowing money and investing in loans. It pioneered peer-to-peer lending and Open Market loans, which allow people to invest in each other in a way that is socially and financially rewarding. Additionally, Prosper’s auction model provides an open and transparent way to get a personal loan or invest in loans on terms that are favorable to everyone involved in the transaction.

The way Prosper works is intuitive to anyone who has used an online auction. Instead of listing and bidding on items, people and institutions list and bid on loans using Prosper's online auction platform.

Individuals and financial institutions (banks, finance companies, etc.) can list loans for between $1,000 and $25,000 (or more, for Open Market loans) on Prosper with loan durations anywhere from six months to three years. Individual borrowers or financial organizations selling loans set the maximum rate they are willing to pay an investor for the loan.

People and institutional investors register on Prosper as lenders, then set their minimum interest rates, and bid in increments of $50 to $25,000 on loan listings they select. In addition to criteria commonly used by institutional lenders, such as credit scores and histories, Prosper lenders can consider borrowers' personal stories, endorsements from friends, and group affiliations.

Once the auction ends, Prosper takes the bids with the lowest rates and combines them into one simple loan to the borrower or financial institution loan seller, and then distributes what are called loan "notes" to all the winning bidders. Prosper handles all on-going loan administration tasks including loan repayment and collections on behalf of the matched borrowers and investors. Soon Prosper members will be able to trade loan Notes with other members on the Trading Platform. The Trading Platform is not yet available, as it is subject to regulatory approval.

Prosper's rigid privacy policy reflects co-founder and Chief Executive Officer Chris Larsen's longstanding history as an advocate of stringent consumer financial privacy protection laws and practices. Prosper does not sell, rent or share members' personal information with third party marketers. Prosper's security and identity verification systems are state of the art, and consistent with those used by banks, brokerages and institutional creditors.

Prosper generates revenue by collecting a one-time 3% fee on funded loans from borrowers, and assessing a 1% per annum loan servicing fee to lenders. Backed by Accel Partners, Benchmark Capital, DAG Ventures, Fidelity Ventures, Meritech Capital Partners, and Omidyar Network, Prosper has raised $40 million. Prosper's marketplace platform is patent pending.

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Management & Investors Read biographies of the Prosper Management Team and group of investors.

Media Room News Articles, Press Releases, Market Surveys, Radio and Television Advertisements.

Institutional Lenders Exciting opportunities for asset managers hedge funds, family offices and other institutions.