Lending Club has been the leader in peer-to-peer lending since it joined the credit marketplace in 2006. Last Thursday, December 11, the company made its debut on the NYSE with an initial public offering valued at $5.4 billion.
The value of the Lending Club stock quickly rose 56 percent, making it one of the most valuable financial firms in the nation and potentially a catalyst for further financial tech companies to become more prominent in the American marketplace.
The IPO is the largest of any American tech company this year and opens the door for financial tech startups around the country. Eight years ago, Lending Club was a small lending forum working thru Facebook. In 2009, a group of venture capitalists pumped $10.3 million into the project so it could become the full-scale lending platform that it is today.
What does this mean for Fundrise and the broader financial tech space? In recent years, individual and institutional investors alike have taken a keen interest in marketplace lending, whether in consumer loans, student debt, or real estate.
Lending Club’s’ IPO brings further notoriety to the space and proves the peer-to-peer lending model, showing that technology-enabled investment, which increases transparency and access, is the future of investing.
Lending Club, Fundrise, and a number of other marketplace lending platforms have used technology to provide high-yield, quality investment opportunities and we would love for you to join us as we pave the way for the future of investing.
Image Source: Lending Club