[Chambo]

The thing is that On Deck isn't exactly "cheap". After adding on their origination costs, their program buy rates are on par with the large funders. It's one thing to charge a 14.99% 12 month program like IOU Central, but On Deck's programs are much pricier. I think most of On Deck's recent losses are due to the fact that they have been spending an exorbitant amount of money on marketing and infrastructure, but once the renewals kick in and brand awareness increases because of the IPO, On Deck will be in the black. It's just a matter of seeing the forest from the trees. There's a lot of smart money involved in the IPO and there's a very good reason behind it.

What they are saving by removing ISO's and automating, they are losing in increased default rates.

Come on....80% of their submissions never even speak to an underwriter?