Prosper in the News

Small Businesses Get Access to Loans from Peers
FOX Business News, December 20, 2011 FOX National News profiles Prosper on how it is helping entrepreneurs get access to affordable capital and investors get access to high-yield returns.

Prosper CEO, Chris Larsen, on FOX Business News to discuss Prosper's 370% growth
FOX Business News, October 17, 2011 Prosper CEO, Chris Larsen, is interviewed on FOX Business News' After the Bell news show on the company's 370% year-over-year growth and industry-leading seasoned investor returns.

FOX NEWS Covers P2P Lending Growth
FOX News, October 16, 2011 FOX News covers the growing P2P lending industry and profiles how Prosper is helping borrowers consolidate debt and fund small business growth.

Peer-to-Peer Lenders Take Banks Out of the Credit Equation
GOOD Magazine Online, Oct-2011 Prosper is profiled as an innovative solution to the credit void. The article discusses how peer-to-peer lenders are taking banks out of the credit equation and providing profitable alternatives for borrowers and investors looking to participate.

Prosper CEO Chris Larsen on Bloomberg West TV
Bloomberg West TV, Jun-2011 Bloomberg TV's Emily Chang interviews Prosper CEO, Chris Larsen, on the Company's significant month-over-month growth and its vision for leading social lending.

The Top 50 Venture-Backed Companies
Wall Street Journal, Mar-2011 Prosper.com named to the Wall Street Journal's "The Next Big Thing" list for 2011, which recognizes the 50 most promising venture-backed companies, selected from more than 10,600 U.S.-based companies.

New Ways to Get a Loan Without Going to the Bank
ABCNEWS.com, Jan-2011 Peer-to-Peer Lenders Are Eager to Loan Money at Attractive Rates

Social Lender Prosper.com Drops Auction Model
InformationWeek, Dec-2010 Prosper.com says it will no longer allow lender bidding to set interest rates on new loans.

Peer to Peer Lending Networks
PBS.org, Dec-2010 SUZANNE PRATT: While Tom talked about the state of business lending earlier in the program, individuals are also facing a tougher time borrowing money. In tonight`s "Money File," the rise of a new option: P2P lending.

Mom, Dad, Can I Borrow $140,000?
Wall Street Journal, Nov-2010 Business is booming at the Bank of Mom and Dad.

Credit Crunch Gives 'Microlending' a Boost
Wall Street Journal, Sept-2010 If you think "microlending" is just about helping a street vendor in India buy a cart or getting a new sewing machine for a seamstress in Tanzania, think again.

Are Americans de-banking?
CNNMoney.com, Aug-2010 Fortune lists three signs that there might be a subtle de-banking happening in America

Is Bad Credit Bad for Small Business Startups?
FoxBusiness, Jun-2010 With roughly 600,000 businesses launching every year, entrepreneurship is, for many, part of the American Dream. But for those with bad credit, the prospect of business ownership may seem more like a fantasy than a viable option.

An Online Lender Takes on the SEC
Bloomberg Businessweek, Jun-2010 Peer-to-peer lender Prosper Marketplace says it shouldn't be treated like an investment firm

Prosper.com Finalizes $14.7 Million Series D Funding Round
American Banking & Market News, Apr-2010 Peer to peer lending company Prosper.com has announced that it has finalized a $14.7 million Series D round from new investors

Peer to peer lender Prosper raises $14.7M
Silicon Valley/ San Jose Business Journal, Jun-2010 Prosper Marketplace Inc., a peer to peer lending company, said Friday it raised $14.7 million in a fourth round of funding

New website brings crowd sourcing to fashion
Reuters, Apr-2010 An Internet startup called Fashion Stake launching in coming weeks aims to shake up the fashion industry, just as peer-to-peer file sharing changed the music industry

Why You Shouldn't Pay Your Taxes With a Credit Card
Kiplinger's Personal Finance, Mar-2010 Consider other options for paying off your debt to the IRS.

Debt Consolidation Loans Becoming Increasing Popular on Peer-to-Peer Lending Marketplaces
American Banking & Market News, Feb-2010 Borrowers are turning to peer-to-peer lending companies, such as Prosper Marketplace and Lending Club, for debt consolidation loans more than every other type of loan request made, according to new data from Prosper Marketplace.

New Gartner Study Predicts Peer-to-Peer Lending to Grow to $5 Billion By 2013
American Banking & Market News, Jan-2010 Prosper Marketplace, Lending Club and other peer-to-peer lending companies received encouraging news from a new Gartner study this week indicating that the peer-to-peer lending industry would grow to $5 billion worldwide during the next three years.

5 Ways to Pump Up Your Income: Your bank, your boss, and your portfolio aren't doing much to boost your bottom line-reason enough to try these additional revenue-raisers.
Money Magazine, Alexis Jeffries and Donna Rosato, Dec-2009 Jack Reidy, 42, of Chicago invested $10,000 over 100 loans (60% of them with borrowers who had scores over 700) at Prosper in 2008. Nine of the loans are in default, but he's still averaging an 8% return. "I'm pretty happy," he says. Or a simpler way: Prosper.com's Balanced Portfolio Plan, which averages 7% and puts you in a package of the highest-rated loans.

Welcome to the Machine: Innovations in P2P lending may put computers over people
Deutsche Bank Research, Nov-2009 The largest sites in the US have originated loans worth more than USD 200 m in total [Prosper originated $180]. This is, however, only a tiny fraction of the overall volume of outstanding consumer loans in the US – which stands at USD 2.4 trillion.

Prosper adds Capital One co-founder to board, pockets $1M investment
San Francisco Business Journal, Mark Calvey, Nov-17-2009 "The future of consumer and small business finance is changing rapidly, and Prosper is at the forefront of this transformation,” said Morris, managing partner at QED Investors. Prosper is the nation's largest person-to-person lending marketplace, with more than $180 million in loans and 870,000 members.

The 5Cs of Credit, P2P Lending, Social Lending, Self-Directed Lending
Gerhson Lehrman Group, Ronald Ingram, Nov-11-2009 In theory, a Self-Directed lending paradigm may be more robust than a financial system dominated by large centrally controlled banks. Self-Directed lending is a self-organizing matrix or network (like the Internet) composed of millions of interconnected individuals acting within their right to choose how and to whom they lend their money. Distributed self-organizing systems can adapt and react quickly to dynamic changes in the environment, operate efficiently and grow rapidly whereas by comparison centrally controlled systems (like our current financial system) appear to be less efficient and more prone to catastrophic failures.

Peer-to-Peer Lending Explained: Brother, Can You Spare $100?
Fast Company, Nov-11-2009 Prosper Loans Marketplace is America's largest peer-to-peer lending marketplace, making over $183 million in loans since it launched in 2006.

Capital One Co-Founder Backs P2P Lender Prosper
Private Equity Hub, Nov-11-2009 Nigel Morris, co-founder of Capital One, will join the Prosper board of directors. Prosper previously raised around $40 million, from firms like Accel Partners, Benchmark Capital, Fidelity Ventures, DAG Ventures, Meritech Capital Partners and Omidyar Network.

Prosper.com gets another $1M for peer-to-peer lending
Venture Beat, Anthony Ha, Nov-10-2009 That's a relatively small amount compared to the $41 million that the San Francisco company has raised in all, but the new money is also noteworthy because it comes from Nigel W. Morris, co-founder of Capital One, a major credit card and banking company.

Old Line Banker Puts $1 Million Into P2P Lender Prosper
TechCrunch, Leena Rao, Nov-10-2009 Prosper.com, a popular peer-to-peer lending marketplace in the U.S., has received a $1 million infusion from Nigel Morris, co-founder of Capital One, via his venture capital firm QED Investors. This brings the company's total funding to over $41 million from Accel Partners, DAG Ventures, Fidelity Ventures and Benchmark Capital, among other investors. Prosper pioneered the idea of concept of people-to-people lending in the U.S with its launch in 2006.

Prosper moves into consumer financing with Zero Motorcycles
Finextra, Nov-5-2009 Prosper is billing the service as "the first fully integrated peer-to-peer lending retail purchase financing solution in history".

Prosper an Option for Vehicle Financing
American Banker, Daniel Wolfe, Nov-6-2009 This arrangement chips away at an advantage credit cards have long had over Prosper loans, Chris Larsen, Prosper's chief executive, said. Credit cards have been the preferred financing option because they can provide funds during the transaction, he said. "The idea of getting into the payment stream itself is very attractive," Larsen said.

More Americans Bypass Banks
Parade, Nov-8-2009 Recent problems in the financial system have contributed to that growth. Despite the bailout funds big banks have received and the profits they've recorded, "the money's not getting into the street," says Chris Larsen, CEO of Prosper. As a result, people who need loans are looking for alternatives. Adds Larsen: "I think Americans are going to have to start participating more directly in the credit system," by making loans to one another through P2P sites instead of relying on banks.

Finance Start-Ups Form Trade Group
American Banker, Harry Terris, Oct-21-2009 Executives at members of the Coalition for New Credit Models called their businesses the "wind and solar" of the financial services industry, with the potential to revolutionize the transmission of funds from savers to borrowers and open the flow of credit to consumers who have few dealings with banks and to small and midsize businesses.

Build credit without credit cards
MSN Money, Liz Pulliam Weston, Sep-28-2009 Consider peer-to-peer loans... The rates borrowers can get on three-year fixed-rate loans depend on their credit and their applications, with a loan at Prosper running anywhere from 7.8% to 26%.

Credit crunch disa-peering in individual loans
New York Daily News, Jean Chatzky, Sep-28-2009 Right now, according to Prosper CEO Chris Larsen, most borrowers are using the site to consolidate debts such as credit card bills.

How to Get the Most Out of $1,000 Right Now
Esquire, Ken Kurson, Sep-24-2009 I've made about 13 percent on a thousand-plus loans, helping people pay for home improvements, braces, new small businesses. A great way to do good while doing well.

In a Tight Market, Borrowers Turn to Peers
Washington Post, Nancy Trejos, Sep-20-2009 About 50 percent of Prosper's loans goes to borrowers trying to consolidate credit card debt, said Chris Larsen, Prosper's chief executive. Prosper's loans can come with interest rates as low as 4 percent. "With their credit card debt, it could take 20 years to pay it off," Larsen said.

Financial Innovation Under Fire
Business Week, Peter Coy, Sep-17-2009 Regulation complicates even the rollout of financial products and services that are seemingly pro-consumer. Still, peer-to-peer companies like Prosper... were nearly killed in 2008 by a ruling that the firms had to restructure their loans as securities and register with the Securities & Exchange Commission. They have managed to soldier on.

A Booming Loan Market
CNN, Christine Romans, Sep-15-2009 CNN's Christine Romans reports on a thriving loan market that leaves banks and credit card companies out.

A Booming Loan Market
Barron's, Mike Hogan, Aug-17-2009 It's no secret banks have become tight-fisted. But creditworthy borrowers (and not-so-creditworthy) haven't gone away. Financial researcher Celent figures online borrowing will double next year, to almost $6 billion, with Prosper's membership topping $1 million.

Picture Perfect
Barron's, Robin Goldwyn Blumenthal, Aug-10-2009 Maybe there would have been no subprime-mortgage crisis if eager lenders had looked into the eyes of their prospective borrowers. Recent scientific research doesn't say as much, but it suggests looks play a role in lending.

Personal loans, with a twist
Los Angeles Times, Kathy M. Kristof, Aug-2-2009 "We have a system that we think ensures that both sides get a fair deal," said Chris Larsen, Prosper's chief executive and co-founder.

Five Ways to Get Money Fast
CBS Early Show, Jul-27-2009 "People don't want to go to big banks. They are unresponsive to their needs, so they are looking for creative ways to get the money. It's a blooming business."

Five Alternative Sources of Funding
Wall Street Journal Online, Diana Ransom, Jul-22-2009 At Prosper, borrowers list how much they need and details about their business, while strangers can make loans with as little as $25.

Blogtalk radio: All about peer to peer Lending
WalletPop, Josh Smith, Jul-22-2009 Now that Prosper.com is back from its quiet phase complete with SEC registration and a secondary market for loans, CEO Chris Larsen took some time to talk to WalletPop about Peer to Peer Lending.

5 Ways to Get Cash Fast
SmartMoney, Kelli B. Grant and Lisa Scherzer, Jul-21-2009 The kindness of strangers isn't far out of reach, thanks to the increasing popularity of peer-to-peer lending sites like Prosper.com.

Prosper is Baaacckkkk....
Credit Bloggers, Gerri Detweiler, Jul-21-2009 Prosper's re-launch is welcome news in a time when other lenders are reining in credit offers. Let the bidding begin!

Peer-to-Peer Lending Luring Investors
MSNBC Morning Meeting, Dylan Ratigan, Jul-17-2009

SEC Greenlights Prosper
TechCrunch, Robin Wauters, Jul-14-2009 Prosper is now the first and thus only Internet auction-based P2P loans platform to have its registration statement declared effective by the SEC, which is evidently good news for other players in the P2P lending industry.

As Prosper Gets The Green Light, A Comeback For Peer-to-Peer Lenders?
WSJ The Wallet Blog, Jane J. Kim, Jul-14-2009 Prosper raised the minimum credit score requirements for borrowers to 640 from 520 and introduced a new rating system that takes into account the loan performance of 29,000 Prosper loans as well as credit score data. The company also introduced a minimum “bid floor” for each loan listing and dropped minimum bid requirements to $25 from $50, which should help lenders price loans more appropriately and make it easier for them to diversify.

Peer-to-peer lender Prosper reboots after SEC gives go-ahead
VentureBeat, Kim-Mai Cutler, Jul-14-2009 The site, among the first of its kind to facilitate loans directly between individuals online, is getting the chance to stake out market share amid the U.S.'s longest recession since the Great Depression.

Prosper resumes lending after getting SEC approval
San Francisco Business Times, Mark Calvey, Jul-13-2009 The move significantly enhances the liquidity for Prosper's lenders, who can auction their loans at any time on the new auction-based trading platform.

Prosper Back in Peer-to-Peer Lending Game with Full Approval of SEC
NetBanker, Jim Bruene, Jul-13-2009 Sure, there are now thousands of pages of Prosper documentation on file at the SEC, with thousands more on the way, and lender (aka investors) must now meet various state-mandated "investor suitability" requirements. But fundamentally, it's the same peer-to-peer lending service the company introduced in 2006, albeit with hundreds of incremental improvements.

Peer-to-peer lender Prosper resumes service after SEC nod
Reuters Blogs, Matt Reeder, Jul-14-2009 Launched in 2006, Prosper was the first online lending and borrowing platform of its kind in the United States and signaled an innovative new way for small business owners to raise funds..

P2P lender Prosper is back and better than ever
WalletPop, Josh Smith, Jul-14-2009 A big part of the re-launch, Prosper has instituted several investor-friendly changes which should stimulate both the lending and the borrowing markets at Prosper.

New Bids on the Block
The Economist, Apr-30-2009 INNOVATION is a dirty word in finance these days but, with securitisation markets gummed up, fresh thinking may be just what credit markets need. Prosper and DebtX, two online marketplaces with very different customers, are among those who think they stand to gain.

Bring Silicon Valley to Wall Street
Newsweek, Barrett Sheridan, Apr-29-2009 Financial innovations tend to be either unquestionably good (ATMs, credit cards) or arguably malevolent (credit default swaps), and peer-to-peer lending is widely considered to be among the former. It is the internet era's version of community banking, in which borrowers actually know their bankers, and it's also, in this time of tight credit markets, an alternative way for consumers and small businesses to get access to money when they need it.

P2P Lending Marketplace Prosper Gets Off The Bench, Debuts Open Market Initiative
TechCrunch, Robin Wauters, Apr-29-2009 There are new features, too. Prosper announced its Open Market initiative, which will allow other financial institutions (e.g. auto lenders, small business lenders and community development lenders) to place their already funded loans the Prosper website for auction. The company will vet lenders and require three payments to have already been made on any loan up for sale.

Stop Subsidizing the Street
City Journal, Luigi Zingales & Paola Sapienza, Apr-29-2009 Luckily, starting anew is exactly what's happening in the banking sector, with the launch of several start-ups with innovative ideas. They range from new ways to insure mortgages to new models of lending to reliable consumers by bypassing the current banking system. Many others, such as…Prosper, are popping up on the Internet, letting investors, rather than credit officers, decide who is creditworthy. It's too early to tell if these attempts will succeed, but it's vital that they occur. Through trial and error, a new world of banking will rise from the ashes of the old one.

FinovateStartup 2009 Best of Show Winners Named
NetBanker, Jim Bruene, Apr-28-2009 After a wonderful day in San Francisco featuring awesome demos from 56 startups, four emerged as FinovateStartup Best of Show winners.

State lets Prosper.com resume raising money
San Francisco Chronicle, Tom Abate, Apr-28-2009 "I hope this leads to wider acceptance of peer-to-peer lending," said Commissioner of Corporations Preston DuFauchard. He said the state's experience with Prosper, prior to the SEC intervention, made it "comfortable" that its bidding system gives lenders the information they need to invest in loans wisely.

Prosper.com Reopens for Lending
New York Times, Brad Stone, Apr-28-2009 Prosper is also introducing what it is calling the Open Market Initiative, a way for lending institutions to put any loan — an auto loan or small business loan, for example — up for sale and allow any person or institution to bid on it. Prosper will vet lenders and require three payments to have already been made on any loan up for sale. The company says this could help thaw the credit market by providing an easy, transparent alternative to securitization, giving institutional lenders the liquidity to restart new lending.

Lend to a friend; Peer-to-peer lender Prosper.com is back in business
Fortune, Jessi Hempel, Apr-28-2009 So it is good news for all lending sites that California has given Prosper its blessing. Commissioner of Corporations Preston DuFauchard calls the site an example of "the kinds of innovative ideas that can help get credit in the hands of people who need it while instilling in our financial markets desperately needed openness and transparency."

Prosper Giving Bankers a Place to Unload Loans (Subscription Only)
American Banker, Daniel Wolfe, Apr-28-2009 Edward Kountz, a senior analyst for e-business and channel strategies at Forrester Research Inc., said a new way to resell loans will be appealing to bankers. "Institutions may be somewhat cagey up front about doing that, but I think that in the current environment, too, when it becomes clear that there is an opportunity to differentiate effectively, we'll see a willingness to try," Kountz said. "It'll probably take some time, because things are relatively new."

Peer-to-Peer Lender Prosper Reopens Today at FinovateStartup
NetBanker, Jim Bruene, Apr-28-2009 There's good news in peer-to-peer lending today as Prosper reopened for business. The announcement was time around its appearance at FinovateStartup today. The company is adding loan resale component called Open Market (see diagram below). Open Market loans are initiated by other financial institutions, then resold on the Prosper platform. Open Market loans must have been originated by Prosper-vetted financial institutions, and be current and have had at least three on-time payments.

Prosper CEO says P2P lending could reboot economy
CNET, Rafe Needleman, Apr-28-2009 With the credit markets still reeling from the 2008 Wall Street collapse, Larsen says "credit in the street is needed now more than anything," and that his company's new feature enables that by providing liquidity to banks. The new loan-trading platform gives secondary loan buyers full visualization into loans currently being serviced by a financial institution.

In Focus: Peer-to-Peer lending
NECN, Apr-28-2009 We've talked a lot about how challenging it has been to find a loan during the recession. In this segment we check in on a topic known as peer to peer lending. Jennifer Lane certified financial planner for Compass Planning joins us to talk about how peer to peer lending has been impacted by the global credit crunch.

Perfect strangers: Small businesses turn to online social lending for financing
Mainebiz, Jackie Farwell, Apr-6-2009 Shepard's experience with the site was "a piece of cake," he says. Under the listing "Family grows, business must too," Shepard posted a picture of his family, complete with new baby, and requested a $25,000 loan to buy a partial practice to add to his business. He didn't have a sufficient track record as an independent business owner to get financed through a bank. "I had an opportunity," Shepard says. "You could have charged me 25% and I still would have pursued the opportunity." Rated a grade "A" borrower, he wound up paying an 11.5% interest rate and attracted 656 bids.

The audacity of American bankers
San Francisco Chronicle, John Diaz, Mar-15-2009 "I just can't believe they're still fighting this," said Chris Larsen, former CEO of E-Loan, who held the renegade belief that safeguarding customers' privacy was essential to his and other banks' self-interest. Larsen donated $1 million to bankroll the initiative drive that ultimately persuaded California legislators to adopt the landmark bill.

About face
The Economist, Mar-5-2009 SCIENCE proceeds by trial and error. The successes are trumpeted. The errors are often regarded with embarrassment by subsequent generations, and locked away in attic rooms of the subject's mansion like mad relatives in a Victorian novel. Usually, they stay there. Craniology, phrenology and eugenics, once-respectable fields of endeavour that are now regarded with a shudder, may shriek from time to time, but few sane people pay attention to them. One, however, has escaped recently, and is trying to rehabilitate itself. For years physiognomy—the idea that a person's face is a reflection of his character—was sneered at. Now, it is making a come back.

Find Your Perfect (Business) Match
Entrepreneur, David Port, Feb-11-2009 If what you need is a funding source, Prosper.com is a person-to-person lending marketplace that provides unsecured, three-year, fixed-rate loans for business and personal use. The would-be borrower posts the nature of the loan request, credit history and the maximum interest rate he is willing to pay, then lenders bid down the interest rate in an auction. If the borrower decides to accept the loan at the bid-down rate, funds are issued directly into his account.

5 Alternatives to Borrowing from Banks
Fortune, Nov-18-2008 Borrowers and lenders list and bid for loans on Prosper, an eBay-like auction site that helps process loans of up to $25,000. Interest rates depend on a person's credit history and other criteria - lenders have access to a borrower's personal story, endorsements from friends and photos.

Peer-to-Peer Lending Volumes Worldwide
NetBanker, Jim Bruene, Nov-12-2008 Total worldwide originations are $262 million, with two-thirds of that from Prosper.

Use Prosper.com Loan To Get Lower, Fixed, Interest Rate
The Consumerist, Nov-4-2008 See, she used her Prosper loan to pay off her credit card, swapping her interest rate for a lower, locked-in one. This can be a good tactic for the indebted to use, especially since credit card companies have become much more reluctant to reduce interest rates (and, in fact, for some time, many have been boosting interest rates on perfectly good accounts).

Loans in the time of Facebook
The New York Times, Laura Pappano, Nov-2-2008 Crystal Gnemi, a University of Kansas senior majoring in arts and architecture, credits her snappy profile for helping her get a $7,000 loan in 48 hours on Prosper, which uses an eBay-like bidding system for interest rates. Lenders offer amounts at particular interest rates; those with the lowest rates get in on the deal. Ms. Gnemi wrote that she planned to get a master's in architectural engineering and that she had a 3.6 G.P.A. "while working 30-hour work weeks while taking 18 credit-hour semesters."

Ask an Expert: Credit crunch forces small businesses to be creative
USA Today, Steve Strauss, Oct-24-2008 Check out something called peer-to-peer lending. This form of private lending is increasing in popularity. Private lenders compete for your loans. Check out, for example, www.Prosper.com.

Peer-to-peer lending: Weighing benefits, risks of borrowing from strangers, friends
Associated Press, Candice Choi, Oct-15-2008 Instead Taylor turned to one of the growing number of so-called peer-to-peer lending sites to secure his loan. On Prosper.com, he was able to obtain the funds for 8.3 percent. "I started getting bids within an hour after posting," said Taylor, a manager at a transportation services company.

Keeping Small Business Healthy While Wall Street Isn't
CBS News, Sandra Hughes, Oct-14-2008 At sites like prosper.com, you pitch your idea and individuals bid on your loan. It's called peer to peer lending and it's growing in popularity. The site saw a 37 percent increase last month in the number of loans they brokered. Just like the other loan options; prosper is seeing an increase in the credit quality of their borrowers. Prime borrowers who have a credit score of 720 or higher accounted for 45 percent of their loans last month compared to just 30 percent a year ago.

Welcome to the Google Economy
Seeking Alpha, Jeff Jarvis, Oct-13-2008 Transparency will come through regulation: decrees that require financial institutions to reveal their holdings. But it will also come through the transactions themselves. That is what appeals to me about Prosper: I know who I'm lending to and for what. Prosper's not going to replace Citibank (well, I didn't think it could…). But Citibank has much to learn from Prosper.

Likes Taking Risks, Profitable Returns
The New York Times, Dan Fost, Oct-1-2008 When someone seeks a loan on Prosper, the site's participating lenders "decide who and what get funded, rather than an elite group of bankers," said Chris Larsen, Prosper's founder and chief executive. At Prosper, based in San Francisco, applicants state why they want a loan — to start a business, pay down credit card debt, buy a house, pay for school — and how much they want, as well as the interest rate they hope to pay. Prosper runs a credit check and publishes the rating, and members can bid to participate in the loan, as if it were an item for sale on eBay.

Risks and Rewards of Online Lending
Kiplinger, Jessica Anderson, Oct-2008 The key to success is twofold. First, find your balance -- a risk you feel comfortable taking and a return you're content with. Marilyn Paguirigan, a two-year veteran lender on Prosper, says she chased "sexy, double-digit rates" in the beginning and has already seen some of those loans default. She's since become more conservative and counts herself happy when she earns 7%. "I'm getting more than I would in a money-market account and I sleep well," she says.

9 Sites to Help You Survive the Recession
PC World, Mark Sullivan, Oct-1-2008 Prosper is like a dating site that brings people who want to borrow money together with people who want to lend it. Borrowers post their borrowing requests, and prospective lenders bid on the interest rate at which they're willing to loan part or all of the money.

How to Cope with the Credit Crunch
Wall Street Journal, Kelly K. Spors, Sep-28-2008 Prosper, which has 800,000 registered users, is seeing more entrepreneurs with good credit scores signing up. "We're certainly seeing a steady increase of the quality of borrower coming to our site," Mr. Larsen says. About 55% of the loans being funded are for borrowers with credit scores above 720, he adds, while only about 5% are for those categorized as "subprime" borrowers.

Four Sources of Alternative Funds
Wall Street Journal, Colleen Debaise, Sep-17-2008 Thanks to the credit crunch, peer-to-peer loans to businesses are on the rise. As an alternative financing option, these loans offer many benefits, including fast delivery and competitive rates. Prosper currently advertises rates as low as 7.68%...

More Prime Borrowers at Prosper Site
American Banker, Daniel Wolfe, Sep-11-2008 According to data Prosper released Tuesday, 43% of loans granted through its Web site last month went to prime borrowers (those with credit scores of at least 720), compared with 32% a year earlier and 25% in August 2006. In the past two years the percentage of loans to subprime borrowers (those with scores of 520 to 599) fell 18 percentage points, to 7% last month.

Person-to-Person (P2P) Lending Update
NetBanker, Jim Bruene, Sep-4-2008 Prosper: Through July, the leader in the market is running 10% ahead of its 2007 loan-origination pace. The company has funded $55 million and is on pace to do just under $100 million for the year.

More take social lending route to consolidate debt
CreditCards.com, Erin Peterson, Sep-3-2008 Though these types of loans have been used for funding anything from entrepreneurial ventures to wedding expenses, people have been flocking to the sites to get cash to pay off their credit card bills. At Prosper, for example, about half of all funded loans are used for debt consolidation and paying off high-interest debt.

Financing Is as Close as the Nearest Angel: Jane Bryant Quinn
Bloomberg, Jane Bryant Quinn, Aug-27-2009 Last year, more mainstream borrowers started showing up. "Creditworthy people are being cut off from traditional sources such as home-equity loans," says Chris Larsen, Prosper.com's co-founder and chief executive officer.

From the Ground Up
Washington Post, Kim Hart, Aug-24-2009 Steve Lubs was looking to get rid of his $8,000 in credit card debt, but his high interest rate had him bogged down. He tried getting a loan through a bank to pay off the balance but couldn't find one with an interest rate lower than 12 percent. That's when he turned to Prosper, one of several peer-to-peer lending networks that connect people who need a cash infusion with those who have money to lend. About 70 people have pitched in with $100 to $300, totaling the sum he needs to get out of debt, at a rate of 8 percent.

Serving the underserved
MarketWatch, Gail Liberman & Alan Lavine, Aug-18-2008 TowerGroup warns banks that financial-services companies, and even retailers and others, are challenging them for the unbanked and underbanked markets. Among the challengers are H&R Block, Wal-Mart and peer-to-peer lenders such as Prosper.com; VirginMoney, which formalizes loans between friends and family members; and Finanz and GreenNote, which provide alternative student-loan funding sources such as friends, family and alumni.

Is Peer-to-Peer Lending a Solution for Start-ups?
U.S. News & World Report, Matthew Bandyk, Jul-8-2008 With the increasing scarcity of bank loans because of the economy's credit crunch, entrepreneurs are thirsty for new sources of capital. One such alternative is peer-to-peer lending, in which people lend other people money directly, without the involvement of a financial institution. Transactions take place online, incorporating elements of social-networking sites. Websites such as Prosper.com and Kiva.com connect borrowers and lenders, and the prize on the table is investments.

Person-to-Person Loans
The New York Times, Bob Tedeschi, Jun-15-2008 "We've seen a major shift in creditworthy people getting funded on our site," said Chris Larsen, the chief executive at Prosper. "A lot of that shift is from people who'd traditionally gotten home equity loans."

Moola for College
Baltimore Sun, Eileen Ambrose, Jun-9-2008 Prosper.com, a more established lending site, has seen more interest from student borrowers lately, although education loans make up only 2 percent of all borrowing, says founder Chris Larsen.

Peer-to-peer online lending grows in tight economy
Bankrate.com, Laura Bruce, Jun-6-2008 "Home equity used to be the cash management tool for the credit-worthy borrower, and that has really, really dried up," says Chris Larsen, CEO at Prosper. "In many ways, Prosper's three-year, $25,000 loan is a pretty good proxy for what people were using home equity for -- improving their home, starting a sole proprietorship, college costs and certainly for replacing credit card debt.

How to Play $1K: Powerful P2P Loans
TheStreet.com, Farnoosh Torabi, Jun-2-2008 ...it's extremely important and highly recommended by the P2P lending sites to scatter your money throughout numerous loans of various denominations. In other words, I'll be spreading my $1,000 to at least 10 different borrowers...

Credit Crunch Benefits Some Start-Ups
Wall Street Journal, Russell Garland, May-15-2008 One example is Prosper Inc., a San Francisco company that enables individuals to make loans to each other. Prosper, whose backers include Accel Partners, Benchmark Partners and Fidelity Ventures, has seen a surge in well-qualified borrowers turning to it for financing after being frozen out of traditional credit markets. It has also seen more people willing to lend money through its network, seeking higher rates than they can earn on bank deposits.

Prosper Kicks Off Nationwide Lending with New Slogan and TV/Radio Advertising
NetBanker, Jim Bruene, May-7-2008 Armed with a new national lending capability, new slogan, "Let's bank on each other," and a window of opportunity to gain ground on the competition, person-to-person lending pioneer Prosper is preparing new marketing initiatives which includes television and radio advertising. Prosper said in its blog Monday that the ads will begin test runs this week.

Business Loans Get Creative
Associated Press, Tali Arbel, May-4-2008 Even as the Small Business Administration's main loan program gave out 17.6 percent fewer loans by early April than in the same period last year, online lending auction site Prosper.com has seen a big jump in high-quality borrowers and loan volume.

Loan Web Sites Tapped for College Cash
Wall Street Journal, Kelli B. Grant, Apr-29-2008 Thanks to the credit crunch, dozens of student-loan lenders, including the nation's largest, Sallie Mae, have either sharply cut back on their offerings or have stopped offering loans. As a result, a growing number of students are turning to peer-to-peer lending sites like Prosper.com...

How I Became a Little-Guy Lender
Business Week, Amy Feldman, Apr-23-2008 For me, there was no question which site I'd pick. Prosper was the leader, and I trusted Larsen, whom I'd spoken with before in the course of writing articles.

Lending networks take off on Web
Sun-Sentinel, Harriet Johnson Brackey, Apr-13-2008 "I've been begging the credit-card companies to work directly with me," said Evangelina Altamirano, an office manager of a Miami law firm. But she couldn't get her rates lowered. So she turned to Prosper.com and now has a $13,000 loan at just above 7 percent interest that she used to pay off her credit cards, which were charging 23 percent and 16 percent. The peer-to-peer network "says they put their trust in you. That's worth more to me than anything," she said. "I will not let them down."

A New Way to Borrow Money
Charlotte Observer, Christina Rexrode, Apr-12-2008 Chris Larsen, Prosper's chief executive and co-founder, speaks often about "democratizing" the lending process and taking the decisions about who qualifies for a loan out of the hands of an elite minority.

In Credit Crunch, Lending To Each Other
CBS Evening News, John Blackstone, Mar-21-2008 Since CBS News first reported on Prosper.com a year ago the credit crisis has made person-to-person lending take off, nearly tripling Prosper's customers to 630,000.

Where Either a Borrower Or a Lender Can Be
Wall Street Journal, Jane J. Kim, Mar-12-2008 Instead, the 31-year-old from Schaumburg, Ill., recently borrowed $22,500 on Prosper.com, an online lending network that matches individual borrowers and lenders. The interest rate on Mr. Walsh's loan: 10.25% -- several percentage points below what he says he would have had to pay at a bank.

Q&A: 'Bringing Together George Bailey and Gordon Gekko'
Wall Street Journal, Jane J. Kim, Mar-12-2008 It's combining community banking with the high finance of Wall Street -- bringing together George Bailey with a little Gordon Gekko.

How to Manage Credit Card Debt
NPR Talk of the Nation, Neal Conan, Mar-4-2008 With talk of an impending recession, many credit card holders are trying to pay off debt — but are finding it easier said than done. Financial experts discuss strategies for managing credit card debt and offer tips for ways to avoid it altogether.

Hey, Buddy, Can You Spare $10,000?
Jeninne Lee/St. John, Time Magazine, Feb-29-2008 The slumping economy has sent the banking system into panic mode, making it tough for even people with the best credit rating to get a good interest rate. So a rising number of folks looking to consolidate debt, buy an engagement ring, finance their small business or pay off a mortgage are using the Internet to ask for help from a friend or, more often, a stranger.

New lending site helps people "prosper"
Lyanne Melendez, ABC 7, Feb-26-2008 Prosper.com is the on-line site that created this people-to-people lending model. it's like an eBay for money.

Prosper CEO sees company benefiting from credit crunch
Mark Calvey , San Francisco Business Times, Feb-25-2008 In an interview with the San Francisco Business Times after his keynote address, Larsen said Prosper also benefits from providing lenders with greater transparency on who is borrowing their money. Recent creations on Wall Street, such as collateralized debt obligations, are now in big trouble and their lack of transparency compounds the problems. Observers criticize how difficult it is to determine where the risk lies with some of these new products that helped fuel the recent era of easy money.

The World's 50 Most Innovative Companies
Kevin Ohannessian, Fast Company, Feb-15-2008 So far, Prosper's lenders and borrowers are only in America, but a new joint venture would let Japanese lenders bid on American loans -- and the goal is to connect people (and capital) globally. Says Larsen: "The ultimate model puts together global efficient social capital with market efficiency. This is the groundwork being laid."

Peer lending websites let residents borrow, lend money
Eugene CBS News, Laura Rillos, Feb-5-2008 Within three days, Ryan Koch received enough bids to pay his medical bills. He'll pay his lenders back--but will forever be in their debt. "It's really cool, I mean people you don't even know are willing to help you out," he said. "I have someone who gave $250 bucks. It's very nice."

No Problem? Peer Lenders Get Choosier (subscription only)
American Banker, Daniel Wolfe, Jan-30-2008 Notably, with home values falling and banks become more wary about letting people borrow against their declining equity, "the home equity business has been shut down," Mr. Larsen said, so many people have begun seeking out unsecured, personal loans, and some are turning to Prosper instead of banks.

Bank said no? Try a personal lender online
Seattle Post-Intelligencer, Phuong Cat Le, Jan-20-2008 Prosper, the largest in the U.S. with 500,000 members and $100 million in loans, leaves it up to the marketplace to decide who gets funded and at what interest rate. "It's done by the community itself, so people can get the right prices on both sides," said Chris Larsen, chief executive of Prosper.

At Last, a Bank of Your Own
Barron's, Mike Hogan, Jan-7-2008 They're highly automated, remarkably transparent, and employ Web 2.0-era ways of matching borrowers to lenders.

Peer-to-peer lending hits its stride
USA Today, Kathy Chu, Dec-26-2007 The market for the loans is still relatively small but growing fast, according to Celent, a research firm. Celent projects that $5.8 billion in peer-to-peer loans will be made in the USA by 2010, an 800% leap from the amount this year.

Social-networking principles have spawned a lending marketplace that lets individuals make loans to almost anyone
The Christian Science Monitor, G. Jeffrey MacDonald, Dec-24-2007 For would-be lenders with a social agenda, options are proliferating at a rapid clip. In February [2006], Prosper (www.prosper.com) debuted with a claim to be America's "first people-to-people lending marketplace."

Will a Stranger Lend You $25,000?
BusinessWeek, John Tozzi, Dec-21-2007 The day the last loan officer rejected his application, Lindgren heard about Prosper. The auction-style site connects borrowers with lenders and promises both sides more favorable interest rates than banks by cutting overhead costs. Lindgren applied for the maximum $25,000 loan the next day, offering to pay 17.5% interest. Lenders found the offer so attractive that they bid the rate down to 10.2%, and Direct Textbook had the cash in its account within two weeks.

Online Lending Gets Easier and Safer
Wall Street Journal, Jane J. Kim, Nov-28-2007 Last month, for example, Prosper introduced a tool to give lenders a better idea of the estimated return of a loan they are bidding on. Lenders can also now choose from up to four portfolio plans -- essentially bundles of targeted "standing orders" that place bids on loan listings with an expected level of risk and return.

Person-To-Person Lending Flourishes on Web
Jessica Smith, NPR Morning Edition, Nov-2-2007 In a cafe in Washington D.C., 31-year-old Kelly Vielmo stares at a laptop screen and browses a listing of people who want to borrow money. He has logged into his account at "person-to-person" lending site Prosper.com.

How Secondary Market Could Morph Prosper
Daniel Wolfe, American Banker, Nov-2-2007 (Subscription only) Prosper Marketplace Inc. has already demonstrated that it can attract a large customer base, and its plan to create a secondary market for its person-to-person lending service will test whether its users are willing to engage in more sophisticated transactions.

Prosper proposes secondary market for person-to-person loans
Mark Calvey, San Francisco Business Times, Oct-31-2007 Upon receiving approval from the Securities and Exchange Commission, San Francisco-based Prosper plans to establish a secondary trading market via an online trading platform, or resale platform, that will allow lenders to transfer borrower notes to other Prosper lenders.

Crunchless credit
The Economist, Oct-25-2007 Prosper, which is more laissez-faire and has a default rate of 3%, provides measures of "social capital", such as endorsements by friends, that help lenders to judge the risk of a specific borrower.

Peer-to-Peer Lending Offers Solution for Strapped Consumers
Aleksandra Todorova, SmartMoney.com, Oct-15-2007 Within 10 days of posting on Prosper, Newberry received a $9,000 loan at 19%: Enough to pay off the pesky payday loans and all her credit cards, which at that time carried 25% to 27% interest rates. As a result, her monthly payment dropped significantly, to $330 from $800 before consolidation. Her credit score, once a subprime 580, is now 680 and steadily rising.

Log On and Prosper
Laura Rowley, Yahoo! Finance, Oct-4-2007 In the auction space, Prosper is the largest person-to-person lender with 430,000 members lending $91 million in the first year. The borrower profiles are extensive, including the repayment history of other Prosper loans and endorsements from friends who have bid on the loan.

Prosper sheds light on person-to-person lending with new monthly survey
Mark Calvey, San Francisco Business Times, Sep-10-2007 Prosper, an online marketplace for person-to-person lending, said more individual lenders were shying away from subprime borrowers as the credit crunch began last month.

Peer-to-peer lending sites a growing presence on the Web
Patricia Sabatini, Pittsburgh Post-Gazette, Sep-9-2007 Anyone who's ever lent a chunk of money to a relative or friend knows it can be a murky proposition fraught with sticky questions and daunting problems. How much should you lend? Do you charge interest? If so, how much is fair? How long should the borrower get to pay it back?

Small loan quagmire has few solutions
Jack Guttentag, Daily Herald, Aug-15-2007 A relatively recent online entrant into the unsecured loan market, called Prosper.com, is particularly interesting. I have spent hours on their Web site and have been enormously impressed.

Peer Power
Carol Tice, Entrepreneur Magazine, Jul-2007 Last fall, San Francisco's Samovar Tea Lounge was in a cash crunch. Co-owners Jesse Jacobs, 36, Paul Fullarton, 36, and Robert Sandler, 33, had recently opened a second store, putting a crimp in Samovar's bank account just when the company needed to order holiday merchandise. There wasn't time to get a traditional bank or SBA loan, and the interest on a credit card cash advance would have killed profits.

Options Grow For Investors To Lend Online
Jane J. Kim, Wall Street Journal, Jul-18-2007 For investors willing to risk a small portion of their assets, the person-to-person online lending market, popularized by companies such as Prosper.com, is paying typical returns of 8% to 12% or more. The sites, often billed to borrowers as lower-cost alternatives to credit cards and unsecured bank loans, match people who need small loans with willing lenders.

Look for a Higher Return? Consider Lending to a Peer
Matthew Mogul, The Kiplinger Letter, Jul-9-2007 Investors looking to avoid volatile market swings are increasingly lending out money, often to cash-strapped entrepreneurs and small business owners. The trend, known as peer-to-peer lending, typically involves people with a little cash on hand donning the hat of amateur banker and making loans to anyone from a friend or family member to a stranger that they were introduced by an Internet matchmaking firm.

50 Best Websites of 2007
Time, Jul-2007 Prosper is a community of lenders and borrowers or social lending network operates outside of any bank, so the rates are better. Post a request for a loan, including desired amount and the maximum interest rate you'd be willing to pay; potential lenders place bids for the amount they are willing to lend, and at what rate.

Payday Loans Don't Pay
Jonas Elmerraji, Forbes, May-21-2007 If taking out a personal loan isn't a realistic possibility, asking your employer for a pay advance or going to online lending communities like Prosper.com can be a way of avoiding a payday loan.

Got Cash? You Can Loan Money Like a Big-Time Banker
Chaddus Bruce, Wired, May-9-2007 "We're imposing Web 2.0 concepts on a very old-guard business," says John Witchel, chief technology officer and co-founder of Prosper.

Top 10 Lessons From a Microlending Pioneer
Chaddus Bruce, Wired, May-9-2007 Jane Boon, who has lent around $125,000 to over 800 people on Prosper, offers 10 tips to help you improve your own lending intelligence.

How to bypass the bank and get a loan
Simone Baribeau, Christian Science Monitor, Apr-30-2007 A man dressed as the animated movie hero Mr. Incredible presents himself before a group of lenders. He wants a new gaming system, new wakeboard bindings, and maybe a vacation. Or, as he puts it, "$6,000 to blow for fun." And he's willing to pay 10 percent annual interest for a three-year loan.

A Borrower or a Lender Be
Michael A. Prospero, Fast Company, April 2007 Chris Larsen wanted to use technology "to step back to a time when there was personal accountability in the credit markets." He hoped to revive the emotional connection people felt in banking's olden days--think It's a Wonderful Life--while generating market-rate returns.

Loans From Strangers Can Help a Start-Up to Prosper
Renuka Rayasam, U.S. News & World Report, Mar-12-2007 Getting lenders to hand over their money to perfect strangers seems like a tough proposition, but so far the site has brought in $40 million from people looking for an alternative investment.

Bad Credit Borrowers Can Get Loans From You
Betsy Stark, Good Morning America, ABC News, Mar-5-2007 Penic's only alternative would have been to borrow the money on a credit card, in her case, at a staggering 29 percent interest. But now, she has the money for her chocolate fountain, at 15 percent interest.

Be Your Own Bank
Jessica Anderson, Kiplinger's Personal Finance, Mar-2007 Despite the risks, credit experts think that person-to-person, or P2P, lending could be a good investment. "It's a way to diversify your portfolio into an area with little correlation to other financial instruments," says Greg McBride, of Bankrate.com.

Q&A: Pierre Omidyar - Empower Seller
Bill Breen, Fast Company, Mar-2007 Prosper gives people a platform, but individuals self-organize into their own groups. If a borrower defaults on a loan, the pool of lenders loses the money. Early on, we didn't think many for-profit companies would fit all three criteria, but we've found more than we expected.

New way to get a loan
Nathan Halverson, Santa Rosa Press Democrat, Mar-2007 After two months of trying, Windsor resident John Rose could not find a bank that would loan him money to expand his Larkfield Bakery. So in frustration, he turned to a fast-growing Web site that takes a novel approach to lending.

S.F.-based Prosper upgrades online lending service
San Francisco Business Times, Feb-12-2007 Prosper CEO Chris Larsen said Monday the 1-year-old company is taking several steps to enhance the person-to-person online lending service.

Banks Say No? Online Lender Says Yes! (video)
CBS News, Feb-9-2007 "It was amazing. I posted the loan," Miller explains. And, almost as soon as she posted her pitch asking for $3,000, she had 8 bids. "I had already started to get funded," Miller says.

Prospering without a bank loan
Amy Scott, Marketplace Money, Feb-6-2007 Peer-to-peer lending sites are becoming a popular alternative for people who need a loan but have less-than-stellar credit. Amy Scott talks to borrowers and lenders on Prosper.com.

The Art of the (Micro) Deal
Neal Conan, Talk of the Nation, NPR, Jan-30-2007 Chris Larsen, chief executive of Prosper Marketplace, explains how the online service links lenders with borrowers for micro loans.

Eight Top Tech Trends in '07: Prosper
Douglas MacMillan, BusinessWeek, Jan-29-2007 Editors and reporters at BusinessWeek identified eight lesser-known companies most likely to make a splash this year; we highlight them here.

A Tale of Two Lenders
BusinessWeek, Jan-27-2007 Kiva and Prosper share more than the goal of increasing access to capital. Both strive to keep operations lean, and both wrestle with a complicated regulatory environment.

Want to Loan Me Money? Here's a Picture of My Dog.
Annys Shin, The Washington Post, Jan-27-2007

A new way to get a loan
Amy Scott, Marketplace Money, Jan-19-2007 What if you could make more like 25 percent on your investments? But then there's always the chance you'd lose everything. MARKETPLACE's Amy Scott tells us about a new way to lend and borrow money, and it's giving banks a run for theirs.

Peer-to-peer loans working out kinks
Richard Burnett, Orlando Sentinel, Jan-17-2007 As a new round of people plugged into the grass-roots alternative to conventional consumer finance, the dollar value of loans made through the site had reached nearly $30 million by last week, up 50 percent from the middle of last year. Prosper's year-end surge was reminiscent of what credit-card companies and other consumer-finance businesses experience during that period, experts said.

Top 10 Web Sites of 2006: #1, Prosper
Time Magazine, Dec-30-2006 The idea behind Prosper is a bit unusual today, but, as the site reminds readers, person to person lending loans without a financial intermediary has been around since 300 A.D. For those more used to the Internet age, think of it as eBay meets your neighborhood bank.

Help Strangers, Earn a Cool 15%
David Futrelle, Money, Nov-20-2006 How would you like to get in on the ground floor of...some guy in Maine who needs $500 to fix his car? The latest venture from Chris Larsen, 45, co-founder of online loan giant E-Loan, lets you do that and, if all goes well, make money in the process.

Interview with Chris Larsen, Prosper CEO
Robert Millis, American Microphone, Nov-4-2006 American Microphone visits the San Francisco offices of Prosper to talk with Chris Larsen about democratizing finance. Prosper is an innovative peer-to-peer financial network allowing people to borrow and lend money with many of the same tools banks use.

Web Sites to Help You Act Like the Nobel Peace Prize Winner
Ron Lieber, Wall Street Journal, Oct-21-2006 At Prosper.com, those with money to lend can view requests from U.S. residents with Social Security numbers who need money for, say, school or to consolidate debt. Lenders get basic information about applicants' debt and credit and then bid the interest rate they're willing to offer to fund part or all of the loan.

Person-to-person lending: High return, but risky?
Laura Bruce, Bankrate.com, Oct-6-2006 Fixed-income investors who are willing to take on some risk -- and devote some time to research -- may want to explore lending in the consumer credit market.

Brother, Can You Spare a Dime?
Alex Salkever, Inc. Magazine, Aug-1-2006 In May, under the username All4Buddy, Townsend landed a $9,500 loan from a group of 77 individual lenders. The money appeared in her bank account two days later. She is part of a small but growing cadre of business owners taking advantage of person-to-person lending sites.

Peer to Peer Small Business Financing at Prosper
Rich Sloan, StartupNation Radio, Jul-29-2006 One of the most frequently asked questions we get from entrepreneurs is how to land that initial small business financing they need to bootstrap their new business. One of the new alternatives to traditional bootstrap funding for your business is Prosper.com, America's first people-to-people lending marketplace.

She'll lend you money
Richard Burnett, Orlando Sentinel, Jul-29-2006 Brown is among thousands of Americans surfing the latest wave in Internet commerce: peer-to-peer banking, a grass-roots-type phenomenon that matches borrowers and lenders in an online-auction format.

Want to Bid on a Loan?
Mylene Mangalindan, Wall Street Journal, Jul-24-2006 Such peer-to-peer lending, analysts and Prosper lenders and borrowers say, is useful for individuals who have bad credit or have a hard time getting loans through traditional means like banks and credit unions. But it also is for people who are interested in an alternative way to get a fast loan, for, say, developing a small business or joining a poker tournament.

Lots Of Loans, But No Banks
Timothy J. Mullaney, BusinessWeek, Jul-3-2006 Prosper has 1,000 organized groups set up to let members lend to one another. "If you acquire customers through a Jimmy Stewart sense of community, you'll have a better business," he insists. And if his virtual savings and loan takes off, it will be a wonderful life indeed.

Former Wells CEO Paul Hazen joins Prosper's board
San Francisco Business Times, Jun-19-2006 Prosper, an online marketplace for person-to-person lending, said Monday that Paul Hazen has joined the board. Hazen, who is former chairman and CEO of Wells Fargo & Co., will bring valuable experience in financial services to the San Francisco startup's board.

How I Got My Funding: Trying Out Prosper
Erica R. Davis, Dow Jones, Jun-12-2006 Ms. Carroll joined Prosper, adding to her loan request another $2,000 that would allow her to pay off old credit-card debt from college. In April, she secured a $13,000 loan with 13% interest from lenders on Prosper. "I felt a sense of relief," she says. "I knew I was going in the right direction, finally doing what I want to do."

More Bang for Your Buck: Prosper
WSVN-TV: Miami, Ft. Lauderdale, Jun-1-2006 "There's no better feeling than lending out your money, making a great deal, getting a great return on your money, and getting a thank you note saying thank you."

Peer-To-Peer Finance Connects Borrowers And Lenders
Thomas Claburn, InformationWeek, May-16-2006 In February, Prosper opened what it calls "America's first people-to-people lending marketplace." It's a site that helps users borrow and lend money among themselves without the involvement of banks. Though the company says it hasn't been around long enough to disclose its user base, it claims to host over 1,000 active loan listings and 800 active groups.

People to People Lending
Nydia Han, 6 ABC Action News Philadelphia, May-11-2006 Prosper.com allows prospective borrowers to plead their case directly to fellow consumers. It's like an online matchmaking service, but instead of setting up partners for romance, prosper sets people up so they can borrow and lend money.

Would You Trust an Online Stranger for a Loan?
Betsy Stark, ABC World News Tonight, Apr-24-2006 Until recently, the only alternative for someone who couldn't secure a loan from a financial institution was to borrow money from a credit card at a high interest rate. Prosper.com has provided an alternative by allowing prospective borrowers to appeal directly to the public for help.

How Investors Can Live Long and Prosper
Daniel H. Pink, Yahoo! Finance: The Trend Desk, Mar-15-2006 Prosper, which is backed by high-profile venture-capital firms like Accel Partners and Benchmark Capital, has added an interesting twist. Borrowers can form groups-consisting of PTA members, parishioners of a church, college professors, whatever-in the hopes of getting lower rates.

Site hooks up lenders, borrowers
Carolyn Said, San Francisco Chronicle, Mar-6-2006 Like other Internet businesses that eliminate the middleman, its proposition is that everyone involved reaps the rewards of lower costs. Borrowers get better interest rates than they'd pay on credit cards or bank loans. Lenders earn more interest than they would from money-market funds or savings accounts.

Hidden Opportunities
Jonathan Hoenig, SmartMoney.com, Feb-27-2006 Prosper.com, a lending marketplace, offers probably the most exciting and innovative development in online dealing since the Iowa Electronic Markets pioneered presidential futures contracts over a decade ago. Here's why.

Bankless banking
The Economist, Feb-23-2006 The internet age was supposed to herald hard times for the middleman. Customers, so it was said, would flock to the web to buy products and services faster, cheaper and more transparently than in shops or through intermediaries. Disintermediation has indeed come about, as any out-of-work travel agent or bookseller will tell you. Yet retail bankers-the middlemen between savers and borrowers-have been surprisingly untouched.

It's Like Lending to a Friend, Except You'll Get Interest
Bob Tedeschi, The New York Times, Feb-13-2006

Prosper: The eBay of Loans?
Robert Hof, BusinessWeek, Feb-13-2006 A decade ago, when Chris Larsen co-founded online loan broker E-Loan, he purposely took aim at traditional mortgage lenders, many of which he thought deceived borrowers and charged too much. Now, he intends to shake up a whole new swath of the financial services business.