Country: United States
Non-Accredited Investors: Yes (Loans, not investments)
Business Selective: Yes
Investor Selective: No
Lending Club is the person-to person lending network and micro-investment portal with the distinction of being born in social media. Launched in 2006 as an early Facebook app, Lending Club has grown into a marketplace for loans, where borrowers can pitch their business ideas to their peers, and investors can buy into the loans that make those ideas into realities.
The small Californian firm has some impressive accomplishments to boast of, having funded $148 million in loans in the month of May alone. This is made more impressive by the fact that Lending Club loans do not exceed $35,000 in value. Throughout mid-2103, the value of its loans has been growing at around 9% per month. Lending Club CEO Renaud Laplanche expects his firm to have provided $2 billion in fundraising by the year’s end.
Currently, Lending Club serves as an alternative to equity crowdfunding investments for unaccredited investors, as it largely deals in personal loans, not stock. When the JOBS Act is implemented, however, it’s a good bet that ECF deals will be open to all investors on the person-to-person giant.