Lending Club, a peer lending network, has closed a USD24.5m investment round led by Foundation Capital.
Foundation Capital was joined by existing investors including Morgenthaler Ventures, Norwest Venture Partners and Canaan Partners.
"Lending Club is ideally positioned to capture a significant share of the US banking and investment market over the next five to ten years," says Charles Moldow (pictured), general partner at Foundation Capital. "The Lending Club team has built a stellar track record in a challenging environment and now has the data to show that the economic model works and delivers tremendous value to both borrowers and investors."
Lending Club brings together investors and creditworthy borrowers. By cutting out banks, Lending Club cuts down the high cost and complexity of bank lending and offers borrowers lower rates and investors higher returns.
"We are grateful to our new and existing shareholders for their support and commitment to Lending Club’s growth and success," says Renaud Laplanche, chief executive of Lending Club. "This latest investment gives us considerable resources to further develop our platform, launch new products, offer better service to our existing customers and expand our reach to a whole new set of customers."
Lending Club captured 79 per cent of the US peer lending market in March 2010 with USD8,664,750 in monthly loan originations.
