|[May 05, 2014]
Prosper Marketplace Announces $70 Million Investment Round Led by Francisco Partners
SAN FRANCISCO --(Business Wire)--
Prosper Marketplace, Inc., the fastest growing peer-to-peer lending
company in the U.S., today announced it has raised $70 million in
additional funding to fuel the company's growth and expansion. The round
was led by Francisco Partners, a leading global private equity firm
focused exclusively on investments in technology and
technology-enabled services businesses. David Golob from Francisco
Partners will join the Prosper Marketplace Board of Directors. The
funding round also includes investments from Institutional Venture
Partners (IVP), one of the premier later-stage venture capital and
growth equity firms, as well as Phenomen Ventures.
"We are thrilled to welcome Francisco Partners, IVP, and Phenomen
Ventures as equity investors in Prosper Marketplace," said Aaron Vermut,
CEO, Prosper Marketplace. "We have had an incredible year so far, and
have grown monthly platform originations from $9 million in January 2013
to over $100 million in April. Last month Prosper crossed $1 billion in
total loans originated on the platform, and Prosper plans to hit $2
billion in cumulative loans this year. Financially, Prosper Marketplace
is in a very solid place and this capital will be used to expand the
business, advance our technology, and hire the very best talent."
Over the past 15 months, Prosper has focused on improving its
efficiencies and products through the use of cutting-edge technologies.
This has helped to attract new borrowers and lenders at a rapid pace,
with loan originations growing over 400% since last year and up 30% from
last month. At the end of April, Prosper had 35% share of the online
consumer peer-to-peer lending market place.
"In a short period of time, Prosper Marketplace has become a leading
player in the massive consumer lending market, which is ripe for
disruption," said David Golob, a partner for Francisco Partners. "We've
been tremendously impressed with the team and what they have been able
to accomplish in the last 15 months, and we are excited to work with
them as they take the company forward."
"We're very pleased to be partnering with Prosper Marketplace, which has
firmly established itself as a leader in the rapidly growing
peer-to-peer lending industry," said Sandy Miller, General Partner at
IVP. "IVP prides itself on working with a select group of rapidly
growing later-stge technology companies and we are looking forward to
working closely with the Prosper Marketplace management team on their
next phase of growth."
"Prosper Marketplace has an incredibly talented team, headed by Aaron
Vermut, and has flawlessly executed its business objectives," said Igal
Weinstein of Phenomen Ventures. "We believe the company has a clear
future of substantial growth in the addressable market and we are very
happy to be partnering with the other investors in Prosper Marketplace."
Prosper Funding LLC ("Prosper") owns a leading peer-to-peer financing
platform to invest and borrow money (the " platform"). The Prosper
platform connects people who want to invest money with people who want
to borrow money. On the Prosper platform, borrowers list loan requests
between $2,000 and $35,000, and individual and institutional lenders
invest as little as $25 in each loan listing they select. Institutional
investors can also elect to participate in the Whole Loan Program. Over
the past six years, more than $1 billion in personal loans have
originated through the Prosper platform. The unsecured personal loans
are used by Prosper borrowers for a variety of purposes including paying
down high interest rate debt and helping with small business funding.
Learn more at www.prosper.com.
Prosper Marketplace, Inc. is the parent company of Prosper Funding LLC.
About Francisco Partners
Francisco Partners is a global private equity firm which focuses on
information technology. Since its launch over a decade ago, FP has
raised approximately $7 billion and invested in more than 100 technology
companies, making it one of the most active investors in the industry.
The firm invests in transaction values ranging from $50 million to over
$2 billion, where the firm's deep sub-sector knowledge and operational
expertise can help a company realize its full potential. In particular,
this transaction highlights the strength of FP's growing financial
technology franchise, which has included investments in companies such
as Paymetric, Avangate (News - Alert), Hypercom, eFront, Allston Trading, City Index
and GXS. For further information, please visit: www.franciscopartners.com.
About Institutional Venture Partners (IVP)
With $4 billion of committed capital, Institutional Venture Partners
(IVP) is one of the premier later-stage venture capital and growth
equity firms in the United States. Founded in 1980, IVP has invested in
over 300 companies, 98 of which have gone public. IVP is one of the
top-performing firms in the industry and has a 33-year IRR of 43.2%. IVP
specializes in venture growth investments, industry rollups, founder
liquidity transactions, and select public market investments. Since its
inception, IVP investments include such notable companies as
AppDynamics, ArcSight (HPQ), Buddy Media (News - Alert) (CRM), ComScore (SCOR), Concur
Technologies (CNQR), Dropbox, Fleetmatics (FLTX), HomeAway (AWAY),
Juniper Networks (JNPR), Kayak (PCLN), LegalZoom, LifeLock (LOCK),
Marketo (News - Alert) (MKTO), MySQL (ORCL), Netflix (NFLX), ngmoco (DeNA), Polycom
(PLCM), Pure Storage, RetailMeNot (SALE), Seagate (STX), Shazam,
Snapchat, Supercell, Synchronoss (SNCR), Tivo (TIVO), Twitter (News - Alert) (TWTR),
and Zynga (ZNGA). For more information, visit http://ivp.com or
follow IVP on Twitter: @ivp.
About Phenomen Ventures (PV)
Phenomen Ventures is a young (founded in 2012) but one of the fastest
growing venture and growth equity firms having its presence in U.S.,
Europe and Israel. Since inception PV raised $300M of capital and its
portfolio companies have been reaching 35 countries worldwide, while
many of them act as market leaders of their industries in geographies of
operation - such as DeliveryHero, Dafiti, Onetwotrip, Hailo, Hellofresh,
Weebly and others.
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