Author Topic: LC is planning to go public!!!  (Read 5757 times)

william

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LC is planning to go public!!!
« on: November 25, 2012, 07:47:18 PM »
I was under the impression that LC was trying to be independent and not go public. But after watching this video where CEO Renaud Laplanche says "...we are making plans for the next 10 to 20 years and part of these plans is taking the company public" I got so excited!

Link to the video
http://www.bloomberg.com/video/lendingclub-issued-1-billion-in-loans-ceo-says-djicaCFATgaj3iDDJvO6Nw.html

If the company ever did go public I would without a doubt invest. I have no doubt that the company will grow 1000% and I will get more than my money's worth back. Would any one else here invest?

priuspilot

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Re: LC is planning to go public!!!
« Reply #1 on: November 25, 2012, 08:33:48 PM »
I would... they'd end up getting bought by Capitol One before the ink dried on their IPO.  :P

nonattender

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Re: LC is planning to go public!!!
« Reply #2 on: November 25, 2012, 09:41:35 PM »
I was under the impression that LC was trying to be independent and not go public.

Not sure how you got that impression.

IPO's are the liquidity eventuality for both LC and Prosper.  There is also Blue Sky strategic benefit to an IPO (national, all 50 states open).
A little nonsense now and then is relished by the wisest men.

rawraw

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Re: LC is planning to go public!!!
« Reply #3 on: November 26, 2012, 05:29:36 AM »
I was under the impression that LC was trying to be independent and not go public. But after watching this video where CEO Renaud Laplanche says "...we are making plans for the next 10 to 20 years and part of these plans is taking the company public" I got so excited!

Link to the video
http://www.bloomberg.com/video/lendingclub-issued-1-billion-in-loans-ceo-says-djicaCFATgaj3iDDJvO6Nw.html

If the company ever did go public I would without a doubt invest. I have no doubt that the company will grow 1000% and I will get more than my money's worth back. Would any one else here invest?
The growth of the company doesn't matter.  It's the value of the stock relative to the expected growth.  Please don't blindly invest in a stock, or you'll end up like all the unhappy Facebook investors who had the same rational.

Keltset

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Re: LC is planning to go public!!!
« Reply #4 on: November 26, 2012, 01:17:10 PM »
If the company ever did go public I would without a doubt invest. I have no doubt that the company will grow 1000% and I will get more than my money's worth back. Would any one else here invest?

Not nearly enough information available to even make a guess if I would go in and at what price I would go in... The information needed to make this decision would not be available until it IPO's---- that information might start trickling in when they go on their initial offering sales tour... The reality is that IPO's are not always the best bargain and people get caught up in the idea of the company and not the true numbers being represented by the sale. As was mentioned in the post above this... Look @ FaceBook---- If the numbers were good when it IPO'd I'd have been all over it... But honestly the numbers were atrocious and I have no idea why people fell for it.

Peter

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Re: LC is planning to go public!!!
« Reply #5 on: November 26, 2012, 01:25:23 PM »
I noticed that interview as well - it was the first time I have seen Renaud Laplanche say that publicly. But like PeerLend says it was always on the cards. And an IPO at Lending Club would provide a strategic advantage. Instead of just 28 states available for the retail platform there will be all 50 states available under the Blue Sky Exemption.

So, I expect an LC IPO in 2014 or 2015. Whether it will be a good idea to invest or not remains to be seen. Given that there will be a huge P/E ratio it may not be a great investment. But it will be good for p2p lending in general as the media exposure will likely drive tons of new investors and borrowers to the platform.
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faeriering

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Re: LC is planning to go public!!!
« Reply #6 on: November 26, 2012, 07:16:16 PM »
So my biggest fear when they go public (aside from capitalone :)) is that they would move more and more towards helping big investors get into the platform, and drive cost up and returns down for those of us who are smaller investors.

yojoakak

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Re: LC is planning to go public!!!
« Reply #7 on: November 27, 2012, 01:30:09 AM »
I still can't believe LendingClub is not yet profitable.

But if they ever do become profitable, the profits should increase exponentially.

Why would they want to go Public?

rawraw

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Re: LC is planning to go public!!!
« Reply #8 on: November 27, 2012, 06:51:59 AM »
I still can't believe LendingClub is not yet profitable.

But if they ever do become profitable, the profits should increase exponentially.

Why would they want to go Public?
Because all those venture capitalist who have funded the operations want liquidity for their investments.  And then they have access to the market for capital.

faeriering

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Re: LC is planning to go public!!!
« Reply #9 on: November 27, 2012, 07:54:06 AM »

Lovinglifestyle

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Re: LC is planning to go public!!!
« Reply #10 on: November 27, 2012, 12:17:15 PM »
For what it's worth, I was wondering what impact Amazon and PayPal might have on LC if they get something similar going as they say they are working on.

Peter

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Re: LC is planning to go public!!!
« Reply #11 on: November 28, 2012, 06:59:10 PM »
For what it's worth, I was wondering what impact Amazon and PayPal might have on LC if they get something similar going as they say they are working on.

It will be interesting to see where the competition will come from. I don't see Amazon or Paypal as a real threat - I think for LC the real competition will come from someone with a huge online presence in financial services. Paypal is a possibility but they know nothing about borrowers or underwriting loans and that is critical. An online bank like ING or Ally could eventually take them on but that is a few years down the road in my opinion.
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Lovinglifestyle

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Re: LC is planning to go public!!!
« Reply #12 on: November 28, 2012, 10:52:28 PM »
I heard this information on the Clark Howard Show.  He also recommended small business owners look at Lending Club and Prosper for easier funding than banks (2nd time at least that he's referenced both companies).  He mentioned research and statements by Amazon and "evenPayPal" about planning stages.  He made it sound about two years down the road.  This did not sound like good news to me!

Thank you for your comments on the subject!

rawraw

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Re: LC is planning to go public!!!
« Reply #13 on: November 29, 2012, 05:07:45 AM »
For what it's worth, I was wondering what impact Amazon and PayPal might have on LC if they get something similar going as they say they are working on.

It will be interesting to see where the competition will come from. I don't see Amazon or Paypal as a real threat - I think for LC the real competition will come from someone with a huge online presence in financial services. Paypal is a possibility but they know nothing about borrowers or underwriting loans and that is critical. An online bank like ING or Ally could eventually take them on but that is a few years down the road in my opinion.
ING was bought by Chase.  I don't see any online banks competiting with Lendingclub's overhead, unless they are truly an online bank.

Peter

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Re: LC is planning to go public!!!
« Reply #14 on: November 29, 2012, 11:59:59 AM »
I heard this information on the Clark Howard Show.  He also recommended small business owners look at Lending Club and Prosper for easier funding than banks (2nd time at least that he's referenced both companies).  He mentioned research and statements by Amazon and "evenPayPal" about planning stages.  He made it sound about two years down the road.  This did not sound like good news to me!

Thank you for your comments on the subject!

On the contrary I would think having someone like Paypal enter this space will be great for investors. It might not be great for Lending Club and Prosper but both companies do have a significant headstart. We need more players than just the duopoly that we have today to have a robust industry.
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