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[GLeaderAccountantsChoice]

I honestly don't understand why anyone would invest in Prosper, which is withering away.  Its originations are anemic and shrinking.  Talk about throwing good money after bad.

To the right people, <100 million is small potatoes for a new market with potential.  If this company is going to have its future shot it's going to take a lot more, the alternative being to build a new one from scratch for an interested party, or to solicit an ownership interest in LC, etc.

The problem is that lenders (meaning PMI member lenders) are going to get stuck wondering each time whether or not the company can make it.  If I saw three year's worth of cash on PMI's balance sheet today, then I may be able to rule out PMI BK potential for the period of my investment.  Until then, I just don't think it's viable.

[ira01]

I honestly don't understand why anyone would invest in Prosper, which is withering away.  Its originations are anemic and shrinking.  Talk about throwing good money after bad.

To the right people, <100 million is small potatoes for a new market with potential.  If this company is going to have its future shot it's going to take a lot more, the alternative being to build a new one from scratch for an interested party, or to solicit an ownership interest in LC, etc.

If I were a VC wanting to invest in P2P lending, I would be far more interested in LC than Prosper.  Prosper is dying a slow death, while LC is growing.  And LC doesn't have all of Prosper's baggage.

[Cushie]

Now they've got it on their facebook page - and Tiffany Fox gave it a thumb's up.  

ETA: And I asked when funding would be complete. 

[Urbi_et_Orbi]

As someone already pointed out, I think it is notable that this piece of information refers to Prosper being in the "midst" of an effort to raise this money - and that the leak occured on 3/30.

I ask myself, why would Prosper leak/announce this "process story" item on 3/30, rather than wait to make the announcement when the deal was done?

[blue]

To start getting some 'buzz' going? Some free publicity?

[112233]

As someone already pointed out, I think it is notable that this piece of information refers to Prosper being in the "midst" of an effort to raise this money - and that the leak occured on 3/30.

I ask myself, why would Prosper leak/announce this "process story" item on 3/30, rather than wait to make the announcement when the deal was done?

SEO ?

[baeventures]

I hope they get the cash honestly. Will give me a chance to be fully withdrawn before they declare bankruptcy in 2011 then !

BAEVentures

[Staneslav]

a

[Xenon481]

is in the midst of raising a $13.3 – $15.8 million

As other have pointed out, they have not received any additional VC at this time and are only announcing that they are trying to raise that funding.

[baeventures]

I honestly don't understand why anyone would invest in Prosper, which is withering away.  Its originations are anemic and shrinking.  Talk about throwing good money after bad.

To the right people, <100 million is small potatoes for a new market with potential.  If this company is going to have its future shot it's going to take a lot more, the alternative being to build a new one from scratch for an interested party, or to solicit an ownership interest in LC, etc.

If I were a VC wanting to invest in P2P lending, I would be far more interested in LC than Prosper.  Prosper is dying a slow death, while LC is growing.  And LC doesn't have all of Prosper's baggage.

I have to think that your response would be different if you already had a few million weighing on the success/failure of Prosper. Why give up now? The other problem with many investors, whether they are VC's, traders, real estate, whatever, is that they hate to admit they were wrong or made a mistake... Hell I love throwing money at a sinking ship, I even bought GM when they tanked to $0.50 per share (but then again I sold a week later at $0.85...

BAEVentures

[Urbi_et_Orbi]

I am now guessing the "leak/announcement" last night was timed in an attempt to help provide counter-balance to the press/blog coverage that would result from the 10-k filing the next day.

[Urbi_et_Orbi]

From the 10-K

On March 30, 2010, the Company entered into a Letter of Intent for the private placement of shares of the Company’s Series D Preferred Stock for an aggregate purchase price between $13.3 million and $15.8 million, including approximately $3.3 million from conversions of outstanding principal and interest on promissory notes due to existing investors, a minimum of $3.0 million from outside investors and a minimum of $7.0 million in additional investments from existing investors. The terms of this agreement are still subject to closing, which the Company expects to happen no later than April 15, 2010.

[Xenon481]

From the 10-K

On March 30, 2010, the Company entered into a Letter of Intent for the private placement of shares of the Company’s Series D Preferred Stock for an aggregate purchase price between $13.3 million and $15.8 million, including approximately $3.3 million from conversions of outstanding principal and interest on promissory notes due to existing investors, a minimum of $3.0 million from outside investors and a minimum of $7.0 million in additional investments from existing investors. The terms of this agreement are still subject to closing, which the Company expects to happen no later than April 15, 2010.

Does the bolded above mean that they are indeed collateralizing the Prosper 3.0 Notes for the Series D Preferred Stock?

[ira01]

From the 10-K

On March 30, 2010, the Company entered into a Letter of Intent for the private placement of shares of the Company’s Series D Preferred Stock for an aggregate purchase price between $13.3 million and $15.8 million, including approximately $3.3 million from conversions of outstanding principal and interest on promissory notes due to existing investors, a minimum of $3.0 million from outside investors and a minimum of $7.0 million in additional investments from existing investors. The terms of this agreement are still subject to closing, which the Company expects to happen no later than April 15, 2010.

Does the bolded above mean that they are indeed collateralizing the Prosper 3.0 Notes for the Series D Preferred Stock?

No, I think that refers to the bridge loans made to PROSPER by various investors.

[Xenon481]

From the 10-K

On March 30, 2010, the Company entered into a Letter of Intent for the private placement of shares of the Company’s Series D Preferred Stock for an aggregate purchase price between $13.3 million and $15.8 million, including approximately $3.3 million from conversions of outstanding principal and interest on promissory notes due to existing investors, a minimum of $3.0 million from outside investors and a minimum of $7.0 million in additional investments from existing investors. The terms of this agreement are still subject to closing, which the Company expects to happen no later than April 15, 2010.

Does the bolded above mean that they are indeed collateralizing the Prosper 3.0 Notes for the Series D Preferred Stock?

No, I think that refers to the bridge loans made to PROSPER by various investors.

OK, that makes sense. So, it basically just means that the loans are being paid off by Series D stock. That means that they are only truly expecting $10-12.5 million in new incoming money, right?