December 3, 2013

PROSPER INCREASES DAILY ORIGINATIONS IN NOVEMBER

By Prosper

It’s hard to believe it is December already. It’s been a couple of months since my last post, as we’ve been heads down and working hard on our platform as we plan for growth and increased originations. As you can imagine, we are excited about what we’re seeing on both the borrower and lender side of our marketplace. Although I was unable to get an October update up on the blog, we saw our biggest month ever in originations in that month – $50 million – and I am happy to report that November was another successful month with almost 10% growth in daily average originations over October.

In March, when I published my first monthly update here on the Prosper Blog, originations were $15.1 million for the month. This was a 60% increase over the previous month and just the beginning of the immense growth we’ve seen this year. November closes with over $46 million in loan originations, a 205% increase over March, 2013, and an astounding 369% increase over January, 2013 when the new management team took over.

By focusing on daily average originations and not trying to manage to a monthly gross originations number, we are aligning our interests with both our borrowers and lenders. Loans are originating as they fund on the platform – allowing for speedier funding for borrowers and faster bid to origination times for lenders. As of now, we are averaging only 4 days from the creation of a listing to origination (money in the borrower’s account), making us the fastest in the industry.

As a result of our strategy of not managing to a monthly growth number, you may see variable growth when looking at monthly originations based on the number of origination days in a month and some other seasonal factors. However, as you can see in the graph below, we have seen a 10% increase in daily origination numbers through November.

Daily originations chart

On a quarterly basis, with one month left, we see Q4* positioning upward still! We are excited about this increase moving into December.

Originations by quarter chart

We continue to make major improvements to the borrower experience. Over the past two months, we have built and launched a new feature that enables our borrowers to upload scanned documents directly to the website during their loan application process. Since the launch of this new feature, we have seen documents supplied more immediately, and, consequently, we are able to speed up our verification process and fund loans more quickly. See a review by Orchard on the improvement to this process. We expect an increasingly positive impact of this new functionality on the month’s performance as the process continues to improve.

You may have noticed some intermittent changes in the loan posting schedule over the past couple weeks. This is as a result of the recent borrower changes mentioned above. We are working to smooth this out, and things should be back on a regular schedule soon.

In light of recent growth, we are honored to have our parent company, Prosper Marketplace, ranked on two lists that recognize fast-growing private companies.

  • Ranked 12th on the “Fast 100,” a list of the fastest growing private companies in the Bay Area by the San Francisco Business Times. Prosper Marketplace earned its ranking on the October 2013 list with 532% revenue growth between 2010 and 2012.
  • Placed on the 2012 Inc. 500/5000, a list of the fastest growing private companies in the country.

Thanks, as always, for your feedback, comments, and suggestions. We appreciate hearing from you and are very excited about the future.

Aaron Vermut
President, Prosper Funding LLC