When you look at the graph above you can see the kind of year that Prosper is having. Apart from a hiccup in February, they have been firing all cylinders this year with some of the most impressive growth we have seen, at least in this country.
The numbers for August are in and Prosper recorded $167.6 million in news loans issued, an increase of 9% over the previous month and up a staggering 434% from August 2013. In the past 12 months they have issued almost $1.1 billion in new loans. Not even the most optimistic prognosticators would have predicted numbers like this 18 months ago.
Below are some of the key stats for last month. Everything is remaining very consistent and the key metric average dollars issued per day continues to show healthy growth.
Average loan size: $13,236
Average dollars issued per business day: $7.6 million
Percentage 36/60 month loans: 66.3%/33.7%
Average interest rate: 14.93%
Percentage of whole loans: 90.3%
Average FICO score: 700
Note: If you are wondering about the Lending Club numbers they have unfortunately stopped updating their new loan data in real time. Their origination numbers and new loan data for the second quarter were made available last month. I will have a post out shortly digging into their numbers.
widen the credit box and approval rate…grow like a weed…sell at a big price…get the hell outta dodge
Bets on when “get the hell outta dodge” happens and what it looks like for the execs? 😉
I’d say a gigantic ROI (30x-40x their investment) for the current owners/management considering they bought the company real cheap simultaneously diluting the original owners down to pretty much peanuts.
Assuming a semi successful LC IPO in the next 4-5 months, I’m guessing early 2016 if they decide to go the IPO route & sell a small chunk, or perhaps even earlier if they decide to just sell the whole thing while the euphoria is in the air for the mega home run.
Sequoia is the best in the biz. There is an obvious playbook here. Draft off LC valuation, sell before the economy/macro turns. I doubt Prosper is an independent entity past 2016. Good for them. Vermuts are studs.
I’d agree with Interesting.. You’re missing Suber though!
Sold for equity or cash?
Who knows what the plans for the Prosper executive team is. But I don’t think we will see any big moves in the near term. In my conversations with the leadership they seem very happy to keep building the company.
“Who knows what the plans for the Prosper executive team is” – “bets” – implies I’m looking for conjecture. Keep building the company – forever? No hints as to what they might want to do?
So in tandem with the strong volume increases the whole loan percentage has gone from around 84% back in March to 88-89% last few months & now to 90.3% for August.
I’m curious, are you having trouble investing your cash? If so, roughly what do your filters look like. Are they detailed or more index oriented and are they focused on say only the lowest grades?
My personal experience is that once invested it’s relatively easy to keep reinvesting. But I don’t have very specific filters.
Are there swarms of retail who are having trouble with index style investing in the lower tiers or are the complaints about not enough product all coming from people who are being pretty selective. I think it matters.
Yes Dan, the whole loan pool is the vast majority of the loans at Prosper. I would like to see that percentage start to come down and I think the management would as well. Despite all this, as Prescott points out, I find it easy to keep my accounts fully invested at Prosper.