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[bamalucky]

The one piece that has been concerning some investors is the class action lawsuit against Prosper. The suit is still ongoing and the new management team would not comment on this matter but based on the new round of funding clearly the lawyers at Sequoia Capital are not too concerned about it.

http://www.lendacademy.com/prosper-reboots-new-ceo-new-funding/

[NewHorizon]

How much of a stretch is it to assume that Sequoia Capital required a new Board before providing funding?

Their lack of faith in the old Board vindicates many of the comments made at ORG.

[ira01]

How much of a stretch is it to assume that Sequoia Capital required a new Board before providing funding?

No stretch at all -- that's almost a certainty.

[NewHorizon]

FWIW, Chris Larsen and Sequoia Capital go back a-ways....

Janina Pawlowski and Chris Larsen founded E-Loan in 1997 .... In 1998, Pawlowski and Larsen sold a 23 percent stake in the company to Sequoia Capital, Softbank and Yahoo for $25.4 million.

http://www.ehow.com/about_5124834_eloan.html

E-Loan was founded by Janina Pawlowski and Chris Larsen in 1997... In 1998, the company received venture capital funding from Sequoia Capital.

http://en.wikipedia.org/wiki/E-Loan

[bangback]

How much of a stretch is it to assume that Sequoia Capital required a new Board before providing funding?

This appears to be a cramdown. If you're desperate when you get an additional VC round, the new investor may insist on 80-95% ownership in exchange for new money, diluting and wiping out the previous investors. Then they reissue new stock or options to the employees to keep them motivated. Since the old board members now own or represent trivial stakes, they resign as part of the funding deal.

I suspect the new executives floated much of the $20M from personal funds (newly enhanced by their nice cashout) and Sequoia is contributing very little beyond its name. Nice strategy.

[Xenon481]

http://www.sec.gov/Archives/edgar/data/1416265/000141626513000115/p8k2d20d2013.htm

Joseph Toms has resigned as Prosper Marketplace, Inc.’s (“PMI”) Chief Investment Officer, effective as of February 14, 2013.  On that same date, Mr. Toms resigned as President and a director of Prosper Funding LLC (“Prosper Funding”).

Kirk Inglis has resigned as PMI’s Chief Operating Officer, effective as of February 15, 2013.  Mr. Inglis also resigned as Vice President and a director of Prosper Funding, effective February 15, 2013 and February 14, 2013, respectively.

Sachin Adarkar has resigned as a director of Prosper Funding, effective as of February 14, 2013.

[Urbi_et_Orbi]

Busy month over there.

[TotoMMB]

Impressive. Prosper Funding has existed for what, 20 minutes?