Prospers.ORG Prosper Forum

Advanced search  

News:

Welcome to Prospers.ORG!   Login here

Pages: [1]   Go Down

Author Topic: Prosper Appoints Stephan Vermut CEO  (Read 9625 times)

DCS

  • Hero Member
  • *****
  • Karma: +2/-1
  • Posts: 1581
    • View Profile
Prosper Appoints Stephan Vermut CEO
« on: January 22, 2013, 03:19:47 pm »

Logged

yankeefan

  • Hero Member
  • *****
  • Karma: +97/-194
  • Posts: 3550
    • View Profile
Re: Prosper Appoints Stephan Vermut CEO
« Reply #1 on: January 22, 2013, 03:28:49 pm »

from EDGAR

Quote
Item 1.01. Entry into a Material Definitive Agreement.


 On January 15, 2013, Prosper Marketplace, Inc. (“Prosper”) entered into a Stock Purchase Agreement (the “Purchase Agreement”) with certain new investors and certain of its existing investors (each, a “Share Purchaser” and, collectively, the “Share Purchasers”), pursuant to which, Prosper issued and sold to such Share Purchasers (either directly or through certain of their respective affiliates) 138,681,680 shares of Prosper’s Series A Preferred Stock (the “Shares”) for an aggregate purchase price of $20 million. The Share Purchasers included: SC Prosper Holdings LLC, Merlin Acorn, LP, Draper Fisher Jurvetson, TomorrowVentures 2010 Fund, LLC, QED Fund I, L.P. and Eric & Erica Schwartz Investments LLC.


Under the terms of the Shares, the Share Purchasers have the right to convert the Shares into common stock at any time. In addition, the Shares automatically convert into common stock (i) immediately prior to the closing of an IPO that values Prosper at least at $200 million and that results in aggregate proceeds to Prosper of at least $40 million or (ii) upon a written request from the holders of at least 70% of the voting power of the outstanding preferred stock (on an as-converted basis). In addition, if a holder of the Shares has converted any of the Shares, then all of such holder’s shares of Series A-1 Preferred Stock also will be converted upon a liquidation event. In lieu of any fractional shares of common stock to which a holder would otherwise be entitled, Prosper shall pay such holder cash in an amount equal to the fair market value of such fractional shares, as determined by Prosper’s Board of Directors (the “Board”). At present, the Series A Preferred Stock converts into Prosper common stock at a 1:1 ratio while the Series A-1 converts into Prosper common stock at a 10,000,000:1 ratio.


Prior to entering into the Purchase Agreement, there was no material relationship between Prosper and any of the Share Purchasers except to the extent that certain of the Share Purchasers participated in Prosper’s previous equity and debt financings. In addition, the following individuals are affiliated with one of the Share Purchasers: Pat Grady is a partner at Sequoia Capital, which controls SG US GF V Holdings, Ltd., which is the sole member of SC Prosper Holdings LLC; Stephan P. Vermut is the general partner of Merlin Acorn, LP; Timothy Draper is a Managing Director at Draper Fisher Jurvetson; Court Coursey is the managing member of Tomorrow Ventures LLC, which is the managing member of TomorrowVentures 2010 Fund, LLC; Nigel Morris is the managing partner of QED Partners LLC, the general partner of QED Fund I, L.P.; and Eric Schwartz is affiliated with Eric & Erica Schwartz Investments LLC.


Item 3.02 Unregistered Sale of Equity Securities


The information set forth in Item 1.01 is hereby incorporated by reference. The Shares were sold in reliance on Section 4(2) of the Securities Act of 1933, which exempts from registration sales by an issuer not involving any public offering.


Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.


The information set forth in Item 1.01 is hereby incorporated by reference. In connection with entering into the Purchase Agreement, the following leadership changes have taken place at Prosper:


   · Pat Grady, who is a partner of Sequoia Capital, was elected to serve on Prosper’s Board as of January 15, 2013.



   · Dawn G. Lepore has resigned as Prosper’s acting President and Chief Executive Officer, effective as of January 22, 2013.


 
 
--------------------------------------------------------------------------------

 

   · Stephan P. Vermut, age 66, has been appointed to serve as Prosper’s Chief Executive Officer and elected to serve on Prosper’s Board, effective as of January 22, 2013. In connection with entering into the Purchase Agreement, Prosper agreed to grant to Mr. Vermut options to purchase 18,490,897 shares of Prosper’s fully diluted common stock, on an as converted basis, at an exercise price per share equal to the fair market value of Prosper’s common stock as determined by the Board.



   · Mr. Vermut most recently served as Managing Director, Head of Prime Services at Wells Fargo Prime Services, LLC (formerly Merlin Securities, LLC). Mr. Vermut founded and served as Chairman of the Board, Chief Executive Officer and Managing Partner of Merlin Securities, LLC until it was acquired by Wells Fargo Securities in 2012. Mr. Vermut served as President and Chief Executive Officer of Montgomery/Bank of America Prime Brokerage from 1995 to 2003. Prior to that, Mr. Vermut was a Partner of Furman Selz in New York and Managing Director of the Prime Brokerage Division of Furman Selz. Mr. Vermut has over 35 years of Wall Street experience, which includes 11 years in institutional sales at L.F. Rothschild & Co. Mr. Vermut received a B.S. in Business Administration from Babson College. Prosper believes that Mr. Vermut’s financial and business expertise, including his background of founding, managing and directing financial and technology-enabled service companies, give him the qualifications and skills to serve as a Director and Chief Executive Officer.



   · In connection with the financing and as part of a planned restructuring of the Board, Christian A. Larsen, Timothy Draper, Gary B. (“Court”) Coursey, Nigel Morris and Eric Schwartz have resigned as members of the Board, effective January 14, 2013.
Logged

Beerbud1

  • Guest
Re: Prosper Appoints Stephan Vermut CEO
« Reply #2 on: January 22, 2013, 03:32:22 pm »

Head of Institutional Sales at L.F. Rothschild....Hmmmmmmm!
Logged

Xenon481

  • Hero Member
  • *****
  • Karma: +759/-87
  • Posts: 12173
  • Feeling Gassy
    • View Profile
Re: Prosper Appoints Stephan Vermut CEO
« Reply #3 on: January 22, 2013, 05:19:19 pm »

The following resigned from Prosper's Board, effective January 14, 2013:

- Christian A. Larsen
- Timothy Draper
- Gary B. (“Court”) Coursey
- Nigel Morris
- Eric Schwartz

The following resigned from Prosper's Board during December of 2012:

- David Silverman
- Larry Cheng
- Jeffrey Jacobs
- James A. Catlin
« Last Edit: January 22, 2013, 07:35:40 pm by Xenon481 »
Logged

havastat

  • Hero Member
  • *****
  • Karma: +0/-0
  • Posts: 711
    • View Profile
Re: Prosper Appoints Stephan Vermut CEO
« Reply #4 on: January 22, 2013, 06:10:42 pm »

About 14.4 cents per share. Quite a bit less than previous rounds.

So a new group of investors has bought control of the company and diluted the previous investors' stock down to minor-participant levels. They've used their power to take over the board, replace the CEO, and clean house.

Hope they do better than the last crew did.
Logged

Xenon481

  • Hero Member
  • *****
  • Karma: +759/-87
  • Posts: 12173
  • Feeling Gassy
    • View Profile
Re: Prosper Appoints Stephan Vermut CEO
« Reply #5 on: January 22, 2013, 07:18:13 pm »

The Form 8-K states that Prosper issued new Series A Preferred Stock, but Prosper already had Series A, B, C, D, E, E-1, and F Preferred stocks.

Is it normal to issue more of a previous series?

http://www.sec.gov/Archives/edgar/data/1416265/000114036113002631/form8k.htm

TotoMMB

  • Hero Member
  • *****
  • Karma: +623/-37
  • Posts: 3208
    • View Profile
Re: Prosper Appoints Stephan Vermut CEO
« Reply #6 on: January 23, 2013, 11:34:18 am »

Eric Schwartz out of the board, but in the new ownership group? I'm assuming he's the Eric Schwartz in the LLC:

Quote
The Share Purchasers included: SC Prosper Holdings LLC, Merlin Acorn, LP, Draper Fisher Jurvetson, TomorrowVentures 2010 Fund, LLC, QED Fund I, L.P. and Eric & Erica Schwartz Investments LLC.
Logged

NewHorizon

  • Hero Member
  • *****
  • Karma: +0/-0
  • Posts: 3914
    • View Profile
Re: Prosper Appoints Stephan Vermut CEO
« Reply #7 on: January 23, 2013, 11:43:37 am »

Eric Schwartz out of the board, but in the new ownership group? I'm assuming he's the Eric Schwartz in the LLC:

Quote
The Share Purchasers included: SC Prosper Holdings LLC, Merlin Acorn, LP, Draper Fisher Jurvetson, TomorrowVentures 2010 Fund, LLC, QED Fund I, L.P. and Eric & Erica Schwartz Investments LLC.


Yes, I think that's what this part means two paragraphs down:
Quote
...and Eric Schwartz is affiliated with Eric & Erica Schwartz Investments LLC.

ETA: Not significant, I suppose, but the incorporation date of this LLC is 11/2/2011 according to the Delaware Division of Corporations.
« Last Edit: January 23, 2013, 11:46:57 am by NewHorizon »
Logged

TotoMMB

  • Hero Member
  • *****
  • Karma: +623/-37
  • Posts: 3208
    • View Profile
Re: Prosper Appoints Stephan Vermut CEO
« Reply #8 on: January 23, 2013, 12:18:17 pm »

Eric Schwartz out of the board, but in the new ownership group? I'm assuming he's the Eric Schwartz in the LLC:

Quote
The Share Purchasers included: SC Prosper Holdings LLC, Merlin Acorn, LP, Draper Fisher Jurvetson, TomorrowVentures 2010 Fund, LLC, QED Fund I, L.P. and Eric & Erica Schwartz Investments LLC.


Yes, I think that's what this part means two paragraphs down:
Quote
...and Eric Schwartz is affiliated with Eric & Erica Schwartz Investments LLC.

ETA: Not significant, I suppose, but the incorporation date of this LLC is 11/2/2011 according to the Delaware Division of Corporations.

Ah, thanks. Guess that's what happens when I don't read any of the referenced material.
Logged

Risk_Reward

  • Hero Member
  • *****
  • Karma: +21/-7
  • Posts: 8804
  • [quote author=ira01 link=topic=29057.msg527926#msg
    • View Profile
Re: Prosper Appoints Stephan Vermut CEO
« Reply #9 on: January 23, 2013, 04:38:37 pm »

So, the new CEO has spent his entire career selling services to hedge funds.  I guess we can already determine that Prosper still won't care about how it treats us individual investors. 
Logged
Real libertarian

NewHorizon

  • Hero Member
  • *****
  • Karma: +0/-0
  • Posts: 3914
    • View Profile
Re: Prosper Appoints Stephan Vermut CEO
« Reply #10 on: January 23, 2013, 07:09:05 pm »

He's apparently already on the record as saying that the retail side is important too,
I gather we'll see what that means, exactly, in the next 100 days.
Logged

Beerbud1

  • Guest
Re: Prosper Appoints Stephan Vermut CEO
« Reply #11 on: January 23, 2013, 07:26:03 pm »

http://pevc.dowjones.com/article?an=DJFVW00020130122e91mvojvf&from=alert&pid=32&ReturnUrl=http%3a%2f%2fpevc.dowjones.com%3a80%2farticle%3fan=_DJFVW00020130122e91mvojvf%26from=_alert%26pid=_32

Quote
Incoming CEO Mr. Vermut, taking the time to speak with VentureWire on his first day at his new job, said he plans to use the funding to hire aggressively and "build our loan volume, technology and the tech infrastructure to provide a better product and service over time."

His team will "spend time visiting high-net-worth family offices and hedge funds and showing the lending side here is a consistent and uncorrelated asset class," he said.

In other words, peer-to-peer lending won't just be about the one on one, with Prosper--it will be about businesses lending to individuals, individuals lending to others, and even individuals lending to small businesses.

Prosper competes with Lending Club Corp . and, to some extent, Kiva Microfunds Inc.

http://www.prosper.com
 
Logged

Risk_Reward

  • Hero Member
  • *****
  • Karma: +21/-7
  • Posts: 8804
  • [quote author=ira01 link=topic=29057.msg527926#msg
    • View Profile
Re: Prosper Appoints Stephan Vermut CEO
« Reply #12 on: January 23, 2013, 08:36:43 pm »

He's apparently already on the record as saying that the retail side is important too,
I gather we'll see what that means, exactly, in the next 100 days.


By retail side, I assume he means borrowers.
Logged
Real libertarian

NewHorizon

  • Hero Member
  • *****
  • Karma: +0/-0
  • Posts: 3914
    • View Profile
Re: Prosper Appoints Stephan Vermut CEO
« Reply #13 on: January 24, 2013, 08:54:35 am »

Quote
Prosper Appoints Stephan Vermut CEO

And Aaron Vermut will join as President.

Father/son team, according to lendacademy.
Logged

ccat

  • Hero Member
  • *****
  • Karma: +1/-2
  • Posts: 4019
    • View Profile
Re: Prosper Appoints Stephan Vermut CEO
« Reply #14 on: January 29, 2013, 10:25:32 am »

That's 20 million they'll never see again.
Logged
Pages: [1]   Go Up