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Sequoia commits more capital to lender Prosper in $25m financing round

25 Sep 2013

money dollar lend borrowSequoia Capital has continued its backing of peer-to-peer lending company Prosper Marketplace by leading a $25m financing round for the business.

The venture capital firm was joined in the round by global asset management giant BlackRock and other existing investors.

Prosper said it had more than tripled its monthly loan originations since bringing in a new management team in January this year, rising from $9m to $32m in August.

That figure brought its total loans provided since inception to more than $600m.

Sequoia Capital partner Pat Grady said, “We’re thrilled with the rate at which [CEO Steve Vermut] and his team have improved upon Prosper’s business model, enabling more and more individuals to discover better rates and have a more positive experience.

“We’re proud to support Prosper in their mission to streamline and democratize the capital markets.”

BlackRock Alternative Investors managing director Brian Stern added, “Prosper is a leader among an emerging group of lending companies that use technology to more readily connect borrowers and lenders – providing unprecedented choice and enabling both parties to better achieve their goals.

“We believe that Prosper exemplifies the type of thoughtful innovation that will enable greater access to and growth in global capital markets.”

Earlier this month Tribeca Venture Partners led a financing round of more than $100m in debt and equity for student lending platform CommonBond.

Silicon Valley’s The Social+Capital Partnership also took part in the financing with ex-Citigroup CEO Vikram Pandit, former Thomson Reuters CEO Thomas Glocer and ex-Barclays senior executive Tom Kalaris.

Commonbond allows MBA graduates who carry student loan debt to consolidate their MBA and undergraduate loans at a fixed rate, which the company says can save them more than $17,000 compared to their federal government loan rates.

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