December 10, 2014
(Editor’s Note: This post is an excerpt from an article appearing in Practitioner Insights on WestlawNext)
One industry to recently emerge on the initial public offering market is peer-to-peer lending providers, with two companies in this industry filing or pricing IPOs in recent weeks, and rumors of a third peer-to-peer lender to be planning an initial public offering of its own.
California-based LendingClub Corp. filed an amended registration statement on Dec. 8 pricing an initial public offering that could raise $928.9 million. The company disclosed that its business involves operating a technology-powered online marketplace that allows individuals or businesses to borrow capital from investors outside of the traditional banking system.
LendingClub’s business typically includes both consumers and small business operators borrowing loans from institutional investors.
A similar company, New York-based On Deck Capital Inc., also recently launched an IPO. The company filed an amended registration statement on Dec. 4, pricing an IPO that could raise up to $207 million.
Like LendingClub, On Deck operates an online platform that provides peer-to-peer lending services for small business loans. Small businesses can utilize On Deck’s platform to apply for a term loan or line of credit.