Lending Club Blog

Lending Club’s Year in Review

As we look back at 2011, we wanted to take the opportunity to reflect on a successful year and especially to thank our many borrowers, investors and employees who made it all possible!

A record 21,721 loans for $257,363,650 were originated on the Lending Club platform during calendar 2011, more than double the $126,351,175 issued via 12,537 loans during calendar 2010!  (Lending Club’s fiscal year ends March 31st.)  Through December 31st, a total of $460,296,150 of personal loans have been originated since we commenced operations in 2007!

Who are some of the people who helped make 2011 a success?

  • We welcomed more than 24,000 new investors who invested over $160,000,000 in Prime Consumer Notes.
  • We now have 46 investors who have each invested $1,000,000 or more through our platform.
  • 13,489 borrowers used Lending Club to consolidate their debts or pay off high interest credit cards – the most popular stated loan purposes in 2011.  We also helped 1,680 borrowers finance home improvements and 975 invest in a small business.

Our Prime Consumer Notes have now generated 18 consecutive quarters of positive returns and provided a Net Annualized Return by grade of between 5.82% to 12.15% depending on loan grades.*  Our notes generated $38,853,367 in interest for our investors, through December 31, 2011.  Diversification continues to be a simple and effective strategy for investors, as every single investor with 800 or more Notes purchased directly from Lending Club has experienced positive returns, and  91.97% of these investors have returns between 6% and 18%.**

To accomplish and support this dramatic growth, we significantly expanded our talented team throughout 2011.  Just 18 months after moving into our spacious Redwood City, CA headquarters, we found ourselves bursting at the seams and again relocated most of our employees to an even larger office in San Francisco’s Financial District.  We also opened an East Coast office for LC Advisors, our wholly-owned subsidiary focused on serving institutional investors.

Our strong performance last year did not go unnoticed.  In August, we were proud to announce a new equity investment of over $25 million in the Company, via a financing round lead by Union Square Ventures.  The following month we announced that Thomvest also participated in the round, as well as became the cornerstone investor in LC Advisor’s new Conservative Consumer Credit Fund.  We were also honored to be recognized for our growth and innovation with several prestigious awards, including being selected as a World Economic Forum Technology Pioneer and named to Forbes’ America’s Most Promising Companies List.

We’re tremendously proud of what we accomplished in 2011 and have exciting plans in store for 2012!

 

 

 

*  Prime Consumer Notes are fixed-income investments that generate monthly cash flow in the form of payments of principal and interest.  Net Annual Return of individual grades as of December 14, 2011.

** All data as of December 14, 2011.  Return calculations based on accounts that have invested in 800 or more unique borrowers for notes directly purchased from Lending Club.   To be included in the Net Annualized Returns calculation, a Note must be originated at least 3 months prior to the calculation date.  800 Notes can be purchased with $20,000. The availability of Notes/unique borrowers is dependent on your investment criteria. There is no guarantee that you will be able to invest in 800 or more Notes/unique borrowers promptly, if at all. The foregoing is not directed to the specific investment objectives, financial situation or investment needs of any particular person and should not be considered investment advice. You should consider reviewing the prospectus with a financial advisor prior to investing.

Past performance is no guarantee of future performance. Investments may lose value.

 

Friday, January 13th, 2012 at 8:12 pm

Comments (8)

  1. This is really great news! Congratulations! Keep up the great work!
    It looks like people have a lot of positive outlooks for the
    lendingclub.

    January 18th, 2012 at 4:31 pm

  2. Blinds Wakefield:

    That is awesome news! Its good to hear that people are able to
    borrow and invest in what is still a very depressed market. Its the
    small and medium sized businesses that are taking these calculated
    business risks that will get the western economies flowing again.

    January 23rd, 2012 at 6:03 pm

  3. Pleasanton SEO Experts:

    Wow, congratulations of a solid 2011. Wishing you a better 2012.
    Best

    January 27th, 2012 at 3:30 am

  4. Those are really great stats! It makes me positive that peer to
    peer lending will be the way to go in the future. People need a
    little time to test the waters on new ideas, but once established
    they can take off like a bullet!

    January 29th, 2012 at 1:31 pm

  5. Lisa:

    Congratulations on creating such a great financial outlet for those
    who wish to borrow to help stimulate the economy again. Peer to
    peer lending will definitely help get the economy rolling,
    especially now that the real estate market seems to be showing
    significant signs of recovery in 2012.

    June 14th, 2012 at 4:52 pm

  6. Fever in Toddlers:

    I have been investing with lending Club for the past few months. I
    am not financial analyst but to mee I find the approach is simple
    and straight forward. I do not put more than $25 in any one loan
    and try to spread it in different groups.

    August 17th, 2012 at 9:23 am

  7. artificial grass installations:

    awesome to see the year review

    August 21st, 2012 at 6:37 am

  8. erda:

    This is great!The only thing i don’t understand is” Past
    performance is no guarantee of future performance. Investments may
    lose value.”why?

    September 7th, 2012 at 1:38 pm

  • Archives z

Recent Posts

Finding the right company culture for you

How important is company culture to you? At Lending… Read More »
September 30, 2014

Welcome Vermont Investors!

Today, we’re thrilled to welcome residents of the state… Read More »
September 4, 2014

We filed to go public today

We filed a registration statement with the SEC today… Read More »
August 27, 2014

Our Billion Dollar Quarter

We’re excited to announce  that we’ve facilitated over $5… Read More »
July 8, 2014

Is Lending Club Available in My State?

Is Lending Club available in my state? That is… Read More »
July 7, 2014

5 Things Everyone Should Do Before a First Interview

After spending hours drafting your… Read More »
June 24, 2014

Lending Club Joins Senator Cory Booker to Discuss Improving Access to Capital for Small Businesses

Read More »
June 20, 2014

Lending Club Named a CNBC Top 50 Disruptor for a Second Year

For the second year in… Read More »
June 17, 2014

PRIME is now Automated Investing

Lending Club is excited to announce that PRIME has… Read More »
May 14, 2014

Why Dana joined Lending Club, or, four things you should look for when you make your next move

Read More »
May 14, 2014