[isaacdstern]

Lending Club May Also Be Seeking a Buyer

http://www.lendacademy.com/lending-club-seeking-buyer/

[Sean Cash]

Lending Club May Also Be Seeking a Buyer

http://www.lendacademy.com/lending-club-seeking-buyer/

I feel like a sale here would make their model a failure in a sense. They came in, dominated, and then collapsed at the finish line??? Don't get me wrong, I love the concept and I invest tens of thousands on their platform, but it would just feel like they failed at what they were trying to accomplish.

Lending Club isn't the same company they used to be. They are no longer peer-to-peer. They market loans to consumers, which are in turn almost entirely funded by banks, funds, and other institutional groups. Retail investors get the scraps. And retail investors aren't even lending to the consumers, but rather buying unsecured notes from Lending Club that are backed by the performance of loans they issue.

In trying to disrupt banking, they became a bank, but one with unique technology. Whatever the banks don't want, the general public can buy into. Loans get funded fast and more loans get funded.

Lending Club's marketing strategy is similar to what everyone else on here does. Direct mail is their bread and butter but they do Internet stuff too, SEO, PPC, affiliate links etc.

I would prefer a Lending Club IPO over a company sale. A sale of Lending Club would have implications on the future of Prosper, their closest competitor, both good and bad.