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Renaud Laplanche Says Lending Club IPO Within 18 Months

by Peter Renton on December 6, 2012

I woke up this morning and saw this article from CNET in my Google alerts. I knew that Renaud Laplanche, CEO of Lending Club, was planning an IPO at some time in the future. But at LeWeb12, a major technology conference in Paris, earlier today Laplanche conducted an interview where he stated that an IPO may only be as long as 18 months away.

I have reached out to the head of marketing at Lending Club for an official comment but have not heard back yet. If I get a response I will update this post. But this is very big news for Lending Club and for the p2p lending industry in this country.

[Update: I heard back from Scott Sanborn, CMO at Lending Club, and he spoke with Laplanche after this interview. What Laplanche had said to the interviewer off camera was that Lending Club would be IPO-ready in 18-24 months not that an IPO would happen in 18 months. The timing for an IPO will be dependent on many factors and there is no firm timetable of when that will happen.]

You can watch the entire interview below courtesy of the LeWeb YouTube channel. While the interviewer was certainly bullish on Lending Club he clearly was not as well prepared as I would have expected. Having said that if you have a spare 23 minutes it is well worth watching. For those who want to skip to the little IPO nugget it comes around the 21 minute mark. If you can’t see the video below then click here to watch it on YouTube.

{ 6 comments… read them below or add one }

Megan/faeriering December 7, 2012 at 8:09 am

So aside from the corporate line that “users won’t see any change, infact their experience will improve”, what does this really mean for us? Will LC still maintain majority control of their stock? Will they shift from making sure they pick good borrowers to just trying to maximize short term fees?

Thanks for publishing this so quickly!

Reply

Peter Renton December 7, 2012 at 11:52 am

Of course, there are no details available yet of exactly what a Lending Club IPO will look like. The biggest impact on investors will be that people from every state will be eligible to invest in the platform. I also think the 10% limit on investors will go away because that is something that was included to please states.

I imagine their IPO will be for far less than 50% of outstanding shares so there will be no chance of a hostile takeover. The LC board should remain in control. I very much doubt that underwriting will change much but there will be more pressure to keep the rapid growth coming. Given their track record this should not be a huge problem.

We are still a long way away from this happening so how it will look exactly is anyone’s guess. But I think this is a positive step for investors as a whole. It means the chance of an LC bankruptcy would become very remote indeed.

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Anna J. Shelton March 27, 2013 at 6:07 pm

How would one go about investing in Lending Club?

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Peter Renton March 28, 2013 at 5:23 am

Right now there is no way to invest in Lending Club stock, it is limited to employees and board members. Once they do an IPO which is still most likely more than a year away you will be able to buy their stock from any online broker. As the Lending Club IPO develops I will be covering it here so stay tuned.

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Anna J. Shelton March 28, 2013 at 3:56 pm

Thank you and sorry I wasn’t clear in my question. I didn’t mean buying stock. I meant, I guess, becoming a member–providing money for others to borrow through the Lending Club.

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Peter Renton March 29, 2013 at 5:35 am

You can start by reading my Lending Club Review for new investors here:
http://www.lendacademy.com/lending-club-review/

This includes a video that shows how the investing platform worked. If you watch the video and read the information in the review you will have everything you need to get started. There are links to open an account on the review page.

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