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

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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


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

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