Author Topic: Can Prosper close out August strong enough?  (Read 6640 times)

YellowSeed

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Can Prosper close out August strong enough?
« on: August 28, 2012, 01:05:30 PM »
Is this the month Prosper's month over month growth stops?  I think they will squeeze everywhere they can and pull this month out, but they better get that S-1 effective fast as institutional interest does not seem to be growing like at LC.

See attached screenshot taken this morning.  Anyone else care to vote?

[attachment deleted by admin]

Peter

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Re: Can Prosper close out August strong enough?
« Reply #1 on: August 28, 2012, 03:32:51 PM »
Is this the month Prosper's month over month growth stops?  I think they will squeeze everywhere they can and pull this month out, but they better get that S-1 effective fast as institutional interest does not seem to be growing like at LC.

See attached screenshot taken this morning.  Anyone else care to vote?

I keep a close eye on this and it is the closest I have seen them come to missing it. I think they will squeak past the previous month but probably not by more than $100,000. They are proud of their growth record but at just 332 listings right now it is going to be tight. Assuming an average of $7,500 per listing there is only $2.5 million loans on the platform right now. So these will all need to fund as well as another million. It is going to be close.
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YellowSeed

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Re: Can Prosper close out August strong enough?
« Reply #2 on: August 31, 2012, 12:53:57 PM »
....and they missed.  This is not a good development, especially considering LC went from $60MM to $70MM.  After the last 10Q, I stopped investing new money in Prosper and now I will be withdrawing any spare cash rather than reinvesting it.  I hope that the news flow turns positive soon as I would like to continue to invest on the platform.

Peter

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Re: Can Prosper close out August strong enough?
« Reply #3 on: August 31, 2012, 01:51:45 PM »
....and they missed.  This is not a good development, especially considering LC went from $60MM to $70MM.  After the last 10Q, I stopped investing new money in Prosper and now I will be withdrawing any spare cash rather than reinvesting it.  I hope that the news flow turns positive soon as I would like to continue to invest on the platform.

They certainly did miss. A bit surprising after 23 months of positive growth. But I am continuing to invest as I see this as a minor setback.
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YellowSeed

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Re: Can Prosper close out August strong enough?
« Reply #4 on: October 31, 2012, 07:54:39 PM »
After a rebound in growth in September, they struggled again in October.  I know Peter has a lot of faith in Prosper, but I would like share my plan.  I am starting to sell a few more notes than usual and I am for sure not investing any new money on the platform until:

1)  The Prosper Funding S-1 is effective and you see a substantial pickup in month over month loan volume,
2)  They close a massive funding round (round closing & announcement timed around date S-1 is effective?), or
3)  They are acquired

I feel that the potentially higher returns on Prosper are more than offset by the unknowns that bankruptcy would present; my money is going to LC.  The 10Q should be out in the next two weeks, I urge everyone to read it and pay attention to cash on the balance sheet and cash flows from operations. 

Peter

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Re: Can Prosper close out August strong enough?
« Reply #5 on: November 01, 2012, 04:50:15 PM »
Yellowseed,

Your points are valid but you are right I hold more faith in Prosper than many others. I will be meeting with their management team again next week and will be bringing up some of these points. I think their 10-Q is going to show slight improvement but not much.

I see another funding round coming, although not in the short term. I have been told time and again that there is a great deal of interest in Prosper from the VC community who see Prosper as good value for money when Lending Club is valued at more than $540 million.

Here is why I think it is a relatively low risk investment. Lending Club is showing the potential of this space and that it is going to become a serious player in financial services. Prosper is the #2 player but it will clearly benefit from the growth in the space. I see an acquisition as a possibility at some point but Prosper have done the hard yards and growth is going to get easier going forward I believe.
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YellowSeed

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Re: Can Prosper close out August strong enough?
« Reply #6 on: November 29, 2012, 03:37:34 PM »
Oh boy, this is getting exciting.  Prosper Funding has filed two S-1/A in the past 10 days; they must be down to just clearing minor SEC comments now.  It also looks like they are going to have an awful month for originations. 

Once that S-1 is effective, I think we get an announcement of some kind and I am anxious to hear it.  If I were not so lazy I would create a poll, in which, my vote would be that we hear about a massive new funding round in December or at the latest in January. 


Peter

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Re: Can Prosper close out August strong enough?
« Reply #7 on: November 29, 2012, 09:41:54 PM »
It does look like it is getting close with the SEC registration. Prosper investors could well be getting an early Christmas present. I think once Prosper Funding is in place the floodgates will open at Prosper.
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