Get All Access for $5/mo

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.

Side Hustle

The Side Hustle He Started in His College Apartment Turned Into a $70,000-a-Month Income Stream — Then Earned Nearly $2 Million Last Year

Kyle Morrand and his college roommates loved playing retro video games — and the pastime would help launch his career.

Growing a Business

How to Determine The Ideal Length of Your Marketing Emails Your Customers Will Actually Read

Wondering how long your marketing emails should be? Here's what consumers say — so you can send them exactly what they like.

Business News

A Former Corporate Lawyer Now Makes Six Figures on YouTube — Here's How She Does It

Here are the secrets to starting and growing a successful YouTube channel, according to a YouTuber with millions of subscribers.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Business News

New Southwest Airlines Major Investor Wants to Force Out CEO, Slams Company's 'Stubborn Unwillingness to Evolve'

Elliot Investment Management announced a $1.9 billion stake in the Dallas-based Southwest Airlines on Monday and is urging shareholders to vote for new leadership.