Prosper Marketplace, a peer-to-peer lending company, has raised $70 million in new funding to fuel its growth and expansion. The round was led by Francisco Partners and included investments from Institutional Venture Partners and Phenomen Ventures. The Prosper platform connects people who want to invest money with people who want to borrow money. Borrowers list loan requests between $2,000 and $35,000, and individual and institutional lenders invest as little as $25 in each loan listing they select. The company has grown its monthly platform originations from $9 million in January 2013 to over $100 million last month, crossing $1 billion in total loans originated.
Prosper has closed a number of financings since 2005, last raising $25 million at a $115 million valuation in September 2013, prior to this new round. The company will use the new funds to expand its business, advance its technology and hire new talent. Peer-to-peer lending has been gaining traction recently. Additional P2P lending companies to receive VC funding include SoMoLend, Zopa and Auxmoney, each of which secured investments within the past two years.