Are Changes Coming To The P2P Lending Model?

Are Changes Coming To The P2P Lending Model?

LendingClub was the first peer-to-peer lender to file for an IPO and raised $900 million in 2014 – marking the largest U.S. tech IPO of the year. The company’s peer-to-peer model introduces loan seekers to individual investors who offer loans at a typically higher interest rates versus what banks and other traditional lending institutions offer.

In a report published Monday, Michael Tarkan of Compass Point maintained a Sell rating on LendingClub with a $12 price target as investor appetite is “evolving” to account for the Madden v. Midland case.

“The Madden v. Midland case, which called into question federal preemption laws for […] Read more

PeerIQ Secures $2.5M in Follow-On Seed Funding for P2P Credit Risk Analytics Platform

PeerIQ, a financial information services company that connects peer-to-peer (“P2P”) lending to the capital markets by helping institutional investors analyze, access and manage risk, today announced that it raised $2.5 million in a seed-extension round. Participants in the round include new investor and customer Victory Park Capital, as well as Fenway Summer Ventures and existing investors Uprising and former Morgan Stanley chairman and CEO John Mack. The financing follows the Company’s April 2015 receipt of $6 million in seed funding from several prominent capital markets and technology investors.

PeerIQ will use the funds to accelerate its core growth initiatives: continuing new […] Read more