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Author Topic: Dateline: April fools day on new Prosper Funding  (Read 23597 times)

bamalucky

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Re: Dateline: April fools day on new Prosper Funding
« Reply #15 on: February 03, 2010, 12:42:58 pm »

These are warrants.  They have te repaid before lenders.  Kinda like preferred stock.  Lenders aren't gonna be first in line as prosper continues to borrow.  To all current lenders , every dollar you lend adds to their existing collateral IMO
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yankeefan

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Re: Dateline: April fools day on new Prosper Funding
« Reply #16 on: February 03, 2010, 12:46:31 pm »

I read it as being notes with warrants (and convertibility to preferred stock) attached.   The notes (loans) are unsecured, and may rank even with lender's notes (but without the possible claim on the borrower's payments that the retail lenders may have.

The warrants wouldn't have any claim on value of Prosper- but are a right to buy stock at the indicated price.

The preferred stock would pay before the common stockholders get anything, but after the lenders.
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mothandrust

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Re: Dateline: April fools day on new Prosper Funding
« Reply #17 on: February 03, 2010, 12:53:00 pm »

I don't see that this loan is senior to the Borrower Dependent Notes or secured by them; my guess is that it would rank equally with the BDN's and Prosper's other unsecured obligations.
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So all those people who ran in the primary, dropped out, and endorsed the eventual winner who wind up in every cabinet is just a coincidence?
Yes.  They drop out because they realize they cannot win and staying in will hurt their future prospects.  If they later wind up with a job, that's fine.  But that's not remotely the same as a quid pro quo.

mothandrust

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Re: Dateline: April fools day on new Prosper Funding
« Reply #18 on: February 03, 2010, 12:56:27 pm »

Remember when people used to wonder about who was getting stock options?  Then Prosper was getting stock investors.  Next they issued preferred stock.  Now it's unsecured Notes...and at 15%!

There is a very scary progression here.
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So all those people who ran in the primary, dropped out, and endorsed the eventual winner who wind up in every cabinet is just a coincidence?
Yes.  They drop out because they realize they cannot win and staying in will hurt their future prospects.  If they later wind up with a job, that's fine.  But that's not remotely the same as a quid pro quo.

cowdiddly

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Re: Dateline: April fools day on new Prosper Funding
« Reply #19 on: February 03, 2010, 01:00:27 pm »

Great it's starting to look like any loan I have where the payment date is later than the 25th has a strong possibility of only getting two more payments out. I am truly sunk.  :ninja:
« Last Edit: February 03, 2010, 01:08:11 pm by cowdiddly »
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Senator

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Re: Dateline: April fools day on new Prosper Funding
« Reply #20 on: February 03, 2010, 01:04:43 pm »

Loan is featured on the Blog today.
Prosper VC’s Bridge to Series D Fund Raise


Please forgive me if I quote the blog entry as these things have a tendency to get poofed.

Quote
Prosper VC’s Bridge to Series D Fund Raise

02/3/10 posted by Prosper Blog   

As many have presumed, Prosper is in the process of raising another round of capital to continue building what is emerging as the future of consumer and small business financing. The process is going well and we have strong interest from a number of world class investors. We look forward to announcing our Series D round soon.

In the interim, we are very pleased to announce a $2 million financing bridge from our existing investors: Accel Partners, Benchmark Capital, DAG Ventures, Meritech Capital, Omidyar Network, and Volition (formerly Fidelity Ventures). As always, we are greatly appreciative of their unwavering support and excitement about Prosper and the enormous opportunity before us.

The fund raise is one of many developments we’re excited about at Prosper. First and most importantly, as a result of the changes we introduced last July, we’re pleased that estimated lender returns are tracking very well. In addition, continuing to attract high quality borrowers – the cornerstone of great lender returns – is our top priority as evidenced by the recent additions to our leadership team. With the persistent disruption of the traditional banking system, there is a world of opportunity to drive great loan assets to our lenders. However, we will be disciplined in our approach to the risk/return tradeoff, meaning we will grow volume responsibly and steadily.

As peer-to-peer lending enters the next stage of its evolution, it is clear that the industry will become a third way of banking. A way that is more durable and transparent than the now discredited Wall Street securitization schemes; more opportunistic for lenders; and fairer for borrowers compared to credit card companies in particular.

We look forward to continuing to keep you apprised of our progress and major developments. Your support is immensely appreciated.
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Stats as of 12/29/2010:
Total withdrawals: $3,488.87 minus (-) Total deposits: $3,600.00 = ($111.13)
Cash balance: $0
Principal value of active notes:  $0
Total active notes: 0 of 70.

Successful loans are made to persons who are on a clear path to financial stability. -Mjerryfirst May 18th, 2008.

I know that when I make my 10% those "unbelievers" will call it luck cause that will be the easiest way to excuse their mistakes. -Researchpro May 5th, 2009.

It's a great time to be poor and irresponsible in America. -PPT May 2009

Staneslav

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Re: Dateline: April fools day on new Prosper Funding
« Reply #21 on: February 03, 2010, 01:34:20 pm »

a
« Last Edit: December 04, 2017, 12:28:28 pm by Staneslav »
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NewHorizon

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Re: Dateline: April fools day on new Prosper Funding
« Reply #22 on: February 03, 2010, 02:16:43 pm »

Quote
In addition, continuing to attract high quality borrowers – the cornerstone of great lender returns – is our top priority as evidenced by the recent additions to our leadership team.

I missed how the new members of the leadership team translates into high quality borrowers?
(And, btw, doesn't this say something about John Witchel?  :ninja: )
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alexpkeaton

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Re: Dateline: April fools day on new Prosper Funding
« Reply #23 on: February 03, 2010, 02:35:00 pm »

My comment on the blog:

Quote
How is Prosper different from “discredited Wall Street securitization schemes”? Isn’t Prosper doing the exact same thing by selling derivative securities based on a stream of debt payments while assuming no risk itself?

Let's see if it gets posted...
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NewHorizon

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Re: Dateline: April fools day on new Prosper Funding
« Reply #24 on: February 03, 2010, 02:36:26 pm »

Quote
However, we will be disciplined in our approach to the risk/return tradeoff, meaning we will grow volume responsibly and steadily.

So now Prosper has a hand in which borrowers can apply for funding.
Not necessarily a bad thing.  But my how things have changed.  These quaint notions seem to be fading away:
Quote
When someone seeks a loan on Prosper, the site's participating lenders "decide who and what get funded, rather than an elite group of bankers," said Chris Larsen....
http://www.nytimes.com/2008/10/01/business/smallbusiness/01webfund.html?_r=1

Quote
LARSON (sic): It's really kind of giving the power of underwriting, the power of where does capital get allocated directly to individuals.
http://marketplace.publicradio.org/display/web/2007/01/19/a_new_way_to_get_a_loan/
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Mark12547

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Free! I am free from Prosper!

MatthewDP

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Re: Dateline: April fools day on new Prosper Funding
« Reply #26 on: February 03, 2010, 02:56:04 pm »

Prosper sure did a nice job of spinning this one... "We have $2 million in new funding" sounds a lot nicer than "We took out a $2 million loan that we have to repay in 2 months"
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NewHorizon

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Re: Dateline: April fools day on new Prosper Funding
« Reply #27 on: February 03, 2010, 03:03:42 pm »

Prosper sure did a nice job of spinning this one... "We have $2 million in new funding" sounds a lot nicer than "We took out a $2 million loan that we have to repay in 2 months"

Kinda like borrowers who want to take out a Prosper loan to be "debt free"...
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bamalucky

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Re: Dateline: April fools day on new Prosper Funding
« Reply #28 on: February 03, 2010, 03:06:11 pm »

My redneck math puts this at 75k profit for a 2 month loan
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Senator

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Re: Dateline: April fools day on new Prosper Funding
« Reply #29 on: February 03, 2010, 03:15:04 pm »

My redneck math puts this at 75k profit for a 2 month loan
My napkin says $50K profit.
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Stats as of 12/29/2010:
Total withdrawals: $3,488.87 minus (-) Total deposits: $3,600.00 = ($111.13)
Cash balance: $0
Principal value of active notes:  $0
Total active notes: 0 of 70.

Successful loans are made to persons who are on a clear path to financial stability. -Mjerryfirst May 18th, 2008.

I know that when I make my 10% those "unbelievers" will call it luck cause that will be the easiest way to excuse their mistakes. -Researchpro May 5th, 2009.

It's a great time to be poor and irresponsible in America. -PPT May 2009
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