Industry News

Prosper Lost A Whopping $119 Million in 2016

March 20, 2017
Article by:

Prosper Marketplace

Prosper might be the online lender for the who’s who of Wall Street these days, but the company still lost $119 million in 2016. To add perspective, Prosper only had $136 million in revenue for the year, meaning that for every dollar it earned it spent almost two. The loss was also more than 4x […]

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WebBank Releases Earnings, Market Valuation

March 20, 2017
Article by:

Utah flag on money

WebBank, a Salt Lake City-based bank commonly used by online lenders such as Avant, CAN Capital and Prosper to make loans nationwide, reported year-end figures last week through an SEC filing. The company is 91.2% owned by Steel Partners Holdings L.P (NYSE:SPLP). The bank reported net income of $29.2 million for 2016. “Despite significant declines […]

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Brief: Former CAN Capital CFO Moves On

March 9, 2017
Article by:

news

According to the WSJ, Aman Verjee, who was CAN Capital’s CFO up until late last year, has taken the COO position at 500 Startups. The company has invested in more than 1,800 startups across more than 60 countries. According to the website, “500 Startups was founded in 2010 by former PayPal and Google alumni Dave […]

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Square Capital Made More Loans, Maintained Default Percentage, Continued to Show Why They’re A Tough Competitor in Fintech Loan Market

February 22, 2017
Article by:

Square IPO

Square has continued to set itself apart in the fintech lending space. The company announced Wednesday that Square Capital had facilitated 40,000 business loans for a total of $248 million in the fourth quarter of 2016. And they did that while holding their default rate at 4%. A look at their recent loan volume compared […]

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Prospa, Now Valued at $235 Million, is a Major Online Small Business Lender

February 22, 2017
Article by:

deBanked Down Under

Online small business lending in Australia is taking off, especially for Sydney-based Prospa, who according to the Australian Financial Review, has slightly more than half of the industry’s market share. The company just announced a $25 million (AUD) equity round led by AirTree Ventures that pegged Prospa’s value at $235 million (AUD). Prospa is significant […]

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Layoffs, Big Losses for OnDeck in Q4

February 16, 2017
Article by:

red ink

OnDeck weathered a brutal fourth quarter driven largely by an increase in provision for loan losses which increased to $55.7 million, up from $20.0 million in the comparable prior year period. $18.7 million of this can be attributed to loans with original maturities of 15 months or longer whose performance has deviated or is expected […]

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Lending Club Reveals Q4 Figures, $146 Million Loss for the Year

February 15, 2017
Article by:

Lending Club IPO

The year that shook the industry ended six weeks ago but the total damage wrought is just now coming out. Lending Club lost $146 million in 2016, $32 million of which can be attributed to Q4. But it didn’t end all that badly according to CEO Scott Sanborn. On the earnings call he said, “our […]

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What Shakeout? Breakout Capital Secures $25 Million Credit Facility

February 8, 2017
Article by:

Carl Fairbank, CEO of Breakout Capital

Put a tally up on the board for small business lenders in 2017. McClean, VA-based Breakout Capital, which just announced a move into a larger office last week, has also secured a $25 million credit facility with Drift Capital Partners. Drift is an alternative asset management company. Breakout is young by today’s industry standards, founded […]

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OnDeck’s COO Announces Resignation Prior to Q4 Earnings

February 3, 2017
Article by:

OnDeck Capital

OnDeck COO James Hobson notified the company on Friday that he is resigning to “pursue another opportunity.” According to the 8-K filed with the SEC, it will become effective on March 15, 2017. Hobson started at OnDeck in 2011 and became the COO in 2012. The announcement comes weeks before OnDeck is expected to disclose […]

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New York’s Proposed Budget Slips In Sweeping Regulation of Non-bank Business Lending and Finance

January 28, 2017
Article by:

Albany Capitol

In New York, Governor Cuomo’s 309-page budget proposal includes a handful of sentences tucked in towards the end (Part EE) that would revise Section 340 of the state’s banking law. And the implications are broad, given that it calls for any person or entity involved in the soliciting, arranging or facilitation of business and consumer […]

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