Lending Club
 |
|
| Public | |
| Traded as | : LC |
| Industry | Personal finance, Software |
| Founded | 2006 |
| Headquarters |
Stevenson Place San Francisco, California |
|
Key people
|
Scott Sanborn, CEO & President; Carrie Dolan, CFO; Scott Sanborn, COO; John J. Mack, Director,Mary Meeker,Soul Htite |
| Products | Peer-to-peer lending |
| Revenue | 213 million USD (fiscal year ended December 31, 2014) |
|
Number of employees
|
1000 |
| Website | lendingclub.com |
Lending Club is a US peer-to-peer lending company, headquartered in San Francisco, California. It was the first peer-to-peer lender to register its offerings as securities with the Securities and Exchange Commission (SEC), and to offer loan trading on a secondary market. Lending Club operates an online lending platform that enables borrowers to obtain a loan, and investors to purchase notes backed by payments made on loans. Lending Club is the world's largest peer-to-peer lending platform. The company claims that $15.98 billion in loans had been originated through its platform up to 31 December 2015.
Lending Club enables borrowers to create unsecured personal loans between $1,000 and $40,000. The standard loan period is three years. Investors can search and browse the loan listings on Lending Club website and select loans that they want to invest in based on the information supplied about the borrower, amount of loan, loan grade, and loan purpose. Investors make money from interest. Lending Club makes money by charging borrowers an origination fee and investors a service fee.
The company raised $1 billion in what became the largest technology IPO of 2014 in the United States. Though viewed as a pioneer in the fintech industry and one of the largest such firms, Lending Club experienced problems in early 2016, with difficulties in attracting investors, a scandal over some of the firm's loans and concerns by the board over CEO Renaud Laplanche's disclosures leading to a large drop in its share price and Laplanche's resignation.
Lending Club was initially launched on Facebook as one of Facebook's first applications. After receiving $10.26 million in a Series A funding round in August 2007, from venture capital investors Norwest Venture Partners and Canaan Partners, Lending Club was developed into a full-scale peer-to-peer lending company.
On April 8, 2008, Lending Club temporarily suspended new lender registration, canceled its affiliate program and entered a "quiet period" while it awaited approval to issue promissory notes to lenders. On June 20, 2008, Lending Club filed an S-1 statement with the U.S. Securities and Exchange Commission (SEC) seeking the registration of $600 million in "Member Payment Dependent Notes" to be issued on its Web site. On August 1, 2008, Lending Club filed an amendment to its Form S-1 outlining new interest rate formulas as well as more details on a "resale trading system". On October 14, 2008, Lending Club announced its completion of the SEC registration process, posted the filed prospectus on its website, and resumed new lender registration. Notes issued on or after October 14, 2008 represent Lending Club securities rather than direct obligations of the ultimate borrower and are tradable (can be bought and sold) on the Foliofn trading platform. In March 2009, Lending Club raised $12 million in a Series B funding round led by Morgenthaler Ventures.
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