We first heard about Daric in the summer when they made a bit of a splash by filing an S-1 registration with the SEC. They were the first company outside of Lending Club and Prosper to file an S-1 in this industry. The significance of an S-1 is that it allows a company to sell their securities (in this case the p2p loans) to the general public and not just to accredited investors.
Fast-forward a few months and the S-1 registration is still in process. But Daric is moving forward anyway. Over this past weekend Techcrunch broke the story that Daric would be launching this week. So, I called their CEO and Co-founder, Greg Ryan, to get the scoop. He confirmed that Daric is launching today but it will be a small and conservative launch. Daric is already completely open to borrowers and will scale up for accredited investors soon. However, they will not be open for retail investors until some time next year. The significance of today, though, is that Daric will begin issuing loans to borrowers.
Open Today for Accredited Investors
While they plan on completing their S-1 next year they have decided to launch for accredited investors initially. This requires no S-1 registration and is a much easier process. While I would like to see another option for retail investors I actually think this is a good move. It simplifies their launch dramatically.
According to Ryan, they have more than $1 million in borrowers ready to go and will be slowly issuing these loans in the coming days and weeks. They also have 200-300 accredited and institutional investors who have expressed interest, more than enough to fund these initial borrowers. In fact, Ryan said they really don’t need any new investors at this stage and this is why there is no signup option on their Investor page.