P2P Lending / NFT Lending Forum

Peter Tweets: "A record day at @ProsperLoans yesterday - over $3.2 million in new loans originated"


http://www.prosper.com/invest/performance.aspx?af=0&debug-QaZwSxEdC=True&esba=232&flp=False&gm=0&gr=0%2c1%2c2%2c3%2c4%2c5&hw=0&iba=255&ibid=2&ihide=0&iwatch=0&lc=0%2c1%2c2%2c3%2c4%2c5%2c6%2c7%2c8%2c9%2c10%2c11%2c12%2c13%2c14%2c15%2c16%2c17%2c18%2c19%2c20&lq=&maxAmt=35000.00&maxDTI=1000000&maxERR=0.36&maxFund=1&maxGrpTLC=1000000&maxLYR=1&minA=0&minAA=0&minAmt=0&minB=0&minC=0&minD=0&minDTI=0&minE=0&minERR=0&minFund=0&minGrpTLC=0&minHR=0&minLYR=-0.01&minNC=0&occ=&od=09%2f24%2f2013&oer=09%2f24%2f2013&osr=09%2f24%2f2013&pbt=1&plcsd=&plp=0&pmr=0&prdTP=1%2c2%2c5&sf=10&sh=0&sn=&state=&tg=0

Please note that whether or not this is a good thing for Prosper's bottom line is currently unknown.

All of Prosper's financial filings with the SEC have shown that they have classically been unable to properly scale their revenues with their expenses.  In nearly every single filing, even as Prosper's originations revenues increased, their expenses increased dramatically more.

Note that Prosper's quarterly losses have continued to get high and higher by significant percentages even though they keep increasing their originations revenues.

Past performance is not necessarily indicative of future results, but it does indicate that it is not a truism that increasing revenue increases profit.

It is possible that the new management has been able to make changes to Prosper which turns that expense scaling trend around, but there hasn't been any evidence to that case in the 2013 Q1 and Q2 filings. Maybe Q3 will be different or maybe it won't. We will just have to wait and see.

However, Xenon, it does indicate that a bankruptcy (which you have long warned of) is growing less likely by the day.

from: hippo387 on September 24, 2013, 09:07:40 PM

My spies tell me that Prosper just got a fresh capital injection... we'll see.

from: hippo387 on September 24, 2013, 09:07:40 PM

from: nonattender on September 24, 2013, 10:47:47 PM

Case in point. Talk about "deep pockets". No ones pockets are deeper than Blackrock...............& now that they've decided to invest 0.00001% of their assets in Prosper, everything will be fine. In 9 months when Prosper is still deep in the red they'll just open their wallets & kick in another 0.00001%. At that rate Prosper will outlive our great grandchildren. 

Exactly my point about bankruptcy being less likely -- higher growth means the business is more attractive to investors / suitors. Sorry I didn't spell it out in crayon for Xenon, the point has been made countless times.

from: hippo387 on September 25, 2013, 06:53:47 AM

My questions is, what happens to the other investors?  I don't know anything about getting seed or startup money let alone having to go back and ask for more, since I have never been involved in a startup.  Don't you have to give them something for their money?  At least a promise?  Doesn't that water down whatever you gave the other guys who handed you some money previously?  Do they all have to be involved in the decision to let someone else up to the table?  Obviously, if someone came up to me and said I had to water down my ownership or lose everything, I'd be pretty open to sharing with someone else.

"Beyond its participation as an equity investor, BlackRock is likely to lend money to borrowers as well."

from: thezfunk on September 25, 2013, 09:35:14 AM

from: Peter on September 25, 2013, 11:30:57 PM

from: thezfunk on September 26, 2013, 12:19:29 AM