LendingClub is a Young Company Revolutionizing the Financial Services Sector – One Borrower at a Time
LendingClub is an innovative startup allowing high-quality borrowers to connect directly with high net-worth lenders via an online marketplace and without the need for a bank. Since its founding in 2007 the company has facilitated over $325 million in loan volume, with 100% positive return to diversified investors.
In the United States, retail banks charge borrowers interest rates of more than 18% on credit-card balances, but pay only 1% for the account deposits used to fund these loans. The result is a heavy burden on borrowers and sub-par returns for investors.
The LendingClub team saw this unnecessarily large gap as a powerful opportunity to revolutionize the industry. The company’s business model is simple: allow high-quality borrowers to connect directly with informed and educated lenders via a secure online marketplace, without the need for a bank intermediary.
We invested at the earliest stage in May 2007, supported the company’s early growth, and helped it raise its first financing. Today, LendingClub has raised over $77 million in venture capital from top US investors including Canaan Partners, Norwest Venture Partners, Morgenthaler Ventures and Union Square Ventures.
More: http://blogs.wsj.com/digits/2011/08/03/lending-club-nabs-25-million-in-new-funding/