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OnDeck Capital Has a Successful IPO Today

by Peter Renton on December 17, 2014

OnDeck Capital IPO at the NYSE

Following hot on the heels of the Lending Club IPO last week comes another online lender going public. Last night, OnDeck Capital priced its IPO at $20/share which was above the expectations of $16 – $18 per share. At $20/share OnDeck raised about $200 million and was valued at around $1.3 billion.

This morning its shares began trading on the New York Stock Exchange under the symbol ONDK and like Lending Club it received a solid first day bump. Shares opened at $26.50 and traded up throughout the day, closing at $27.98 – a 39.9% increase over the IPO price.

While OnDeck is an online lender like Lending Club, the two companies have very different business models. OnDeck’s focus is purely on small business lending and they are not a true marketplace. They primarily fund their loans off their own balance sheet. Having said that, they do have the OnDeck Marketplace where institutional investors can purchase whole loans and that program continues to grow. When I had OnDeck CEO, Noah Breslow, on the Lend Academy Podcast back in June he said that he was seeing increased demand from investors and that there was a waiting list for investors looking to deploy capital on the OnDeck Marketplace.

Speaking of growth, OnDeck has been on a tear lately. According to their S-1 in the first nine months of this year they originated $788 million in loans, a 171% increase over the same period last year. Their total loan volume originated since inception stood at just over $1.7 billion as of September 30, 2014.

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Peer to Peer Lending News Roundup – December 13, 2014

by Peter Renton on December 13, 2014

During the week I share the latest p2p lending news on Twitter as it happens. Then every Saturday I take the most interesting news items and blog posts from the past week and share them here.

This was a week like no other I have experienced. The Lending Club IPO was front and center all week with the media covering virtually nothing else when it comes to this industry. If I thought the previous week had a lot of coverage this week was off the charts – my Google alerts picked up well over 500 stories. Also, LendAcademy.com saw its biggest week ever with traffic more than doubling over the previous week and the forum setting a new record.

I have sifted through the several hundred stories and share the most interesting ones below.

Can Lending Club IPO Pull An Alibaba (BABA)? from BidnessEtc – Comparing the Lending Club IPO to the largest IPO ever.

The Lending Club IPO is the Netscape moment for Fintech from Fintech for the Rest of Us – Putting the Lending Club IPO into historical perspective.

IPO Lending Club Pairs Investors And Loan Seekers from Investors Business Daily – A primer for readers not already aware of Lending Club.

LendingClub: The Path to IPO from EquityZen – A look at the returns of the early Lending Club investors.

Lending Club Set to Debut, and Industry Is Watching from The New York Times – On the eve of the IPO things were already looking good as Lending Club priced at $15/share.

Lending Club IPO: Finance Business Gets Tech-Stock Allure from The Wall Street Journal – Is Lending Club a finance or tech business? The WSJ points out that it is priced like a tech stock.

Lending Club banks 56% surge on debut from the Financial Times – Tracy Alloway was also on the floor of the NYSE on Thursday and filed this report as trading got under way. [click to continue…]

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The Lending Club IPO: A First Hand Account at the NYSE

December 11, 2014

When I first started writing about this industry in 2010 I did it because I loved the concept and believed in its potential. Back then I was pretty much alone in that thinking. But earlier today many thousands of investors around this country decided that they also believed in this industry’s potential as they bought […]

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Podcast 28: Matt Burton of Orchard Platform

December 10, 2014

This episode of the Lend Academy Podcast features Matt Burton, the CEO and Co-Founder of Orchard. Orchard has quickly become one of the leading companies in the marketplace lending space, developing the ecosystem that connects institutional investors with platforms quickly and easily. Because Matt talks to both platforms and investors on a daily basis he has a […]

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Thoughts from Industry Leaders About the Lending Club IPO

December 8, 2014

This is an exciting time for anyone who follows this industry. It is officially IPO week for Lending Club and it looks like Thursday is going to be the big day. For retail investors participating in the IPO through the Directed Share Program you should have received an email from Fidelity today. This letter was […]

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Peer to Peer Lending News Roundup – December 6, 2014

December 6, 2014

During the week I share the latest p2p lending news on Twitter as it happens. Then every Saturday I take the most interesting news items and blog posts from the past week and share them here. What a week. My Google alerts picked up 267 stories covering our industry this past week which is by far the […]

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The November Loan Origination Numbers for Prosper

December 3, 2014

In the short month of November Prosper issued $158 million in new loans. This was down from $177 million in October and on the face of it this seems like a bad result for Prosper with monthly originations down 10.8% month over month. But as Aaron Vermut, the CEO of Prosper, pointed out to me […]

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Lending Club Offering 50 Million Shares at $10-$12 in IPO

December 1, 2014

Lending Club has a new S-1 registration out this morning as they begin their investor roadshow this week. It gives us a window into their expected valuation and the amount of money they expect to raise. From their filing: LendingClub Corporation is offering 50,000,000 shares of its common stock and the selling stockholders are offering […]

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Peer to Peer Lending News Roundup – November 29, 2014

November 29, 2014

During the week I share the latest p2p lending news on Twitter as it happens. Then every Saturday I take the most interesting news items and blog posts from the past week and share them here. LendingClub’s IPO Looms Over Alternative Lenders Seeking Funds from Bloomberg – Excellent article on what the Lending Club IPO means for […]

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Lending Club Increases IPO to $650 Million Targeting Mid-December

November 26, 2014

According to this piece published in the Financial Times this afternoon Lending Club has boosted the size of its planned IPO from $500 million to $650 million. Tracy Alloway and Arash Massoudi, the reporters who penned the story, are probably the best sourced journalists when it comes to the Lending Club IPO so we can be […]

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