LendingClub.com, the social networking site that matches lenders and borrowers, is set to expand its operations after closing a $12 million round of funding.
The capital raising was led by Morgenthaler Ventures, which joined existing investors Norwest Venture Partners and Canaan Partners in backing the site.
Founded by Renaud Laplanche, LendingClub.com allows borrowers with good credit scores to apply for loans at more attractive rates than they would receive through banks or credit card companies.
Lenders can then review the applications and finance specific deals by investing in notes that relate to individual borrower loans. The site funnels the money from lender to borrower, while the lenders take on the risk of the investment and also share in its returns.
Mr Laplanche said the latest financing deal will enable the site to expand its capabilities and customer base.
"Lending Club is proud to be building a network where individuals come together to provide financial value to each other beyond what traditional banks can provide," he commented.
According to the website's statistics, Lending Club borrowers have received over $30.7 million in loans to date.
Monday, March 23, 2009
LendingClub.com secures $12m in financing
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