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Peer-to-Peer Lending Site Prosper.com Raising $2 Million In Funding

Prosper.com, a peer-to-peer lending and loan marketplace, has raised $1 million worth of a $2 million round of funding, per an SEC filing. QED Investors led the funding; managing partner Nigel Morris is a co-founder of Capital One.

Loan-seekers, private investors and PE firms sign in to Prosper.com; loan-seekers fill out profiles detailing their needs and backgrounds, and the site securely collects info like loan histories and credit scores. Investors bid on the prospects, then Prosper.com algorithmically selects the best matches. It collects an up-front fee from the borrower on approved loans, and a 1 percent annual fee on lenders. Loans are in the $25 to $25,000 range. Founded in 2005, S.F.-based Prosper.com has raised over $40 million in funding from Accel Partners, Benchmark Capital, DAG Ventures, Fidelity Ventures, Meritech Capital Partners and Omidyar Network. Release.

Nov 13, 2009 3:48 PM ET

Ning Money Burn Photo: Flickr/purpleslog

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Posted In: Money, M&A & Venture Capital, Venture Capital, Social Media, nigel morris

  • Janie Johns

    40billion.com is a good option for business owners seeking financing and resources. Small businesses and startup entrepreneurs raise money through personal connections online (a.k.a person to person, peer to peer, social lending). This elevates access to funding, increases transparency, reduces costs, and lowers risk. 

    Entrepreneurs connect with their social networks (friends, family, friends of family, community members, colleagues, alumni and others) to raise up to $99,000 in capital by requesting loans and gift contributions. Funders can get product discounts and freebies, as well as the ability to track how the funding is spent.

    Visit http://www.40billion.com for more info about people funding businesses.

  • Prosper Lender

    If you read the filing, you would see that Prosper obtained a $1 million loan…at 15% interest, no less.

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