Lending Club—the leading online-lending-marketplace, based in San Francisco—goes public on Thursday. The IPO will be the first among several fast-growing financial startups expected to go public in the peer-to-peer (P2P) lending industry.
UPDATE: Lending Club's IPO priced at $15/share, raising about $870 million and valuing the company around $5.4 billion.
Lending Club matches individuals and businesses that want to borrow with lenders—mostly hedge funds, wealth managers and institutional investors. Borrowers pay interest rates ranging from 7.6 percent to 24.9 percent, based on their credit-worthiness, according to Lending Club’s website. Lenders on the site, meanwhile, can realize attractive net returns, in the 7 percent to 9 percent range.
USF School of Management Professor Mark Cannice comments on firms like Lending Club that can either disrupt or even begin new industries. [via @marketplace]