Company Overview

Prosper is a leading online destination for borrowing money and investing in loans. It pioneered peer-to-peer lending, which allows 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.

Borrowers can list loan requests between $1,000 and $25,000 on Prosper. They set the maximum rate they are willing to pay an investor for the loan, and tell their story.

People and institutional investors register on Prosper as lenders, then set their minimum interest rates, and bid in increments of $25 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 to facilitate the funding of one simple loan to the borrower, and then issues what are called "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. Prosper members are then able to trade Notes with other members on the Folio Investing Note Trader platform, provided by Foliofn Investments, Inc.¹

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 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.

¹ Folio Investing is registered trademark of Foliofn, Inc. Securities products and services offered through FOLIOfn Investments, Inc. Member FINRA/SIPC.

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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.