Google Investing in Lending Club, Peer-to-Peer Lending Platform

Maybe it’s time for you to try investing through Lending Club?

Google, the search engine (and everything else) we all know and love, just purchased a minority share (less than 7%) of LendingClub Corp. They made the purchase from current investors along with Foundation Capital for a total purchase price of $125 Million. The purchase was made at a $1.55 Billion dollar valuation, which is much higher than previous valuations. According to Tech Crunch, Lending Club is planning an initial public offering in 2014.

But you don’t have to wait to invest through Lending Club. Lending Club is the leading peer-to-peer (P2P) lending platform. With Lending Club you can borrow money without involving a bank. Instead you rely on individual investors to purchase your debt for an expected decent rate of return. If you haven’t heard of Lending Club it’s likely that they aren’t in your state yet. They aren’t here in Texas, for example.

Chief executive at Lending Club had this to say about the deal:

“We’re trying to be the good guys of finance and banking, and Google has a reputation of being the good guys of technology.”

So why exactly does Google want to own a piece of this non-traditional lending platform company? No specific details have been released about what the two companies are planning to do together. But for P2P fans, it’s a great sign for confidence in the peer-to-peer lending industry that such an influential and innovative company would take a financial interest in Lending Club.

What do you think of the deal with Google? Are you an investor or borrower at Lending Club?

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Last Edited: May 7, 2013 @ 9:41 am
About Philip Taylor

Philip Taylor, aka "PT", is a husband and father of two. He created PT Money back in 2007 to share his thoughts on money and to meet others passionate about managing their finances. All the content on this blog is original, and created or edited by PT. Read more about Philip Taylor, and be sure to connect with him on Twitter, Facebook, or view the Philip Taylor+ Google profile.