Google Leads a $125 Million Investment in Lending Club The peer-to-peer lending platform is now reportedly valued at $1.55 billion.

By Brian Patrick Eha

Opinions expressed by Entrepreneur contributors are their own.

Vator

A major investment by Google has reportedly brought Lending Club, a platform that connects loan seekers with anonymous individual backers, into the rarefied club of companies worth $1 billion or more.

Lending Club announced today that Google spearheaded a $125 million deal with other investors to buy a minority stake in the six-year-old company. Google's stake is reportedly less than seven percent.
This new investment values the peer-to-peer lending startup at $1.55 billion, chief executive Renaud Laplanche told Reuters. The company counts among its board of directors prominent venture capitalist Mary Meeker, former Morgan Stanley chair John Mack and former U.S. Treasury secretary Larry Summers.

Google Leads a 125 Million Investment in Peer to Peer Loan Platform Lending Club
Lending Club Logo

Lending Club offers borrowers a lower interest rate than bank loans. The San Francisco-based company is part of a growing trend for entrepreneurs and others to bypass traditional financial institutions and appeal directly to their consumers or peers for funding. One popular means of raising cash is crowdfunding, in which individuals provide donations -- rather than loans -- through platforms such as Kickstarter and Indiegogo.

Lending Club says it has facilitated nearly $1.7 billion of loans since its inception, including $140 million of loans last month alone. About 80 percent of borrowers, according to Lending Club's website, use the loans to pay off their credit cards or consolidate other debts. Roughly three percent, or nearly 3,900 people, have put the funds into their business.

Related: Anonymous Investors Offer a Lending Alternative

Brian Patrick Eha is a freelance journalist and former assistant editor at Entrepreneur.com. He is writing a book about the global phenomenon of Bitcoin for Portfolio, an imprint of Penguin Random House. It will be published in 2015.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Money & Finance

How Much Money Do You Need to Retire Comfortably in Your State? Here's the Breakdown.

Regardless of where you spend your golden years, it pays to be realistic about the cost of living.

Buying / Investing in Business

Former Zillow Execs Target $1.3T Market

Co-ownership is creating big opportunities for entrepreneurs.

Growing a Business

5 Things You Need to Stop Doing as a Solopreneur

Here are five common mistakes solopreneurs make and how to avoid them.

Money & Finance

Turn Simple Ideas Into Never-Ending Paychecks With This Low-Effort Passive Income Strategy

A micro-hustle lets you build once, sell forever and earn money while you sleep.

Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.

Cryptocurrency / Blockchain

Why Gold and Bitcoin Are the Go-To Safe Havens in 2025

With central banks stockpiling gold and investors turning to Bitcoin, entrepreneurs must rethink how to preserve value amid rising inflation, trade wars and fiat instability.