Peer-to-Peer Loan Facilitator Lending Club Raises $10.26 Million

Authored by Mark Hefflinger on August 23, 2007 - 9:23am.

Sunnyvale, Calif. - Lending Club, a peer-to-peer money-lending service that initially launched as a Facebook application, announced that it has raised $10.26 million in new financing, led by Norwest Venture Partners and Canaan Partners.

Since launching its Facebook application on May 24, Sunnyvale, Calif.-based Lending Club said that Facebook users have issued $750,000 in loans to one another.

The company noted that its screening criteria -- users must have a 640 minimum credit score, and less than 20% DTI -- has led it to decline around 75% of all applications from typically younger Facebook users.

The company said it will use the funds to expand beyond its current Facebook application.

Published in DMW Daily, August 23, 2007

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Comments

but still slow

Submitted by Secured Loans (not verified) on April 11, 2008 - 3:17am.

Well at least someone is leveraging the facebook traffic the right way. But yet their growth has been slower than the other major US P2P lending firms.