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| Lending Club shares surge in US stock market debut | Lending Club shares surge in US stock market debut |
| (about 2 hours later) | |
| Shares in Lending Club, the world's largest peer-to-peer lender, have surged 56% to $23.43 (£15) per share in their New York Stock Exchange debut. | Shares in Lending Club, the world's largest peer-to-peer lender, have surged 56% to $23.43 (£15) per share in their New York Stock Exchange debut. |
| That values the firm at $8.5bn, indicating strong investor interest in the Lending Club's micro-loan model. | |
| Lending Club is an online market place that matches investors with those seeking loans. | Lending Club is an online market place that matches investors with those seeking loans. |
| Chief executive Renaud Laplanche rang the opening bell, and said he thinks the firm is just getting started. | Chief executive Renaud Laplanche rang the opening bell, and said he thinks the firm is just getting started. |
| Lending Club, which does not actually lend any money itself but rather connects borrowers and lenders and then takes a fee, saw its revenue leap from $1.3m in 2009 to $98m in 2013. | Lending Club, which does not actually lend any money itself but rather connects borrowers and lenders and then takes a fee, saw its revenue leap from $1.3m in 2009 to $98m in 2013. |
| The firm says it has financed more than $6.2bn worth of loans since its founding. | The firm says it has financed more than $6.2bn worth of loans since its founding. |
| Booming business | Booming business |
| The marketplace for peer-to-peer lenders has boomed in recent years, as low interest rates and a tight financing environment has spurred investment. | The marketplace for peer-to-peer lenders has boomed in recent years, as low interest rates and a tight financing environment has spurred investment. |
| Fitch Ratings estimated that peer-to-peer lenders originated somewhere between $4bn to $5bn in loans last year. | Fitch Ratings estimated that peer-to-peer lenders originated somewhere between $4bn to $5bn in loans last year. |
| Lending Club rival OnDeck Capital is also scheduled to go public soon, capitalising on enthusiasm for the model among investors. | Lending Club rival OnDeck Capital is also scheduled to go public soon, capitalising on enthusiasm for the model among investors. |
| However, analysts and industry watchers question the long-term viability of the model, noting that firms like Lending Club have benefitted from a low interest rate environment and a relatively welcoming regulatory climate. | However, analysts and industry watchers question the long-term viability of the model, noting that firms like Lending Club have benefitted from a low interest rate environment and a relatively welcoming regulatory climate. |
| But for now, Lending Club, and other firms like it, remain attractive to big players - and even smaller investors. | But for now, Lending Club, and other firms like it, remain attractive to big players - and even smaller investors. |
| Adam Goldsmith, a former finance worker now pursuing a graduate degree, says most of his investments are now with Lending Club. | Adam Goldsmith, a former finance worker now pursuing a graduate degree, says most of his investments are now with Lending Club. |
| "It's really easy to use," he told the BBC. | "It's really easy to use," he told the BBC. |
| "I believe in it because it's a new spin that allows individual investors to access a mature market that was usually open only to banks." | "I believe in it because it's a new spin that allows individual investors to access a mature market that was usually open only to banks." |