View Single Post
Old 11-09-2010, 08:11 PM
Chessic Sense is offline
Join Date: Apr 2007
Posts: 6,743

Talked with Jeff

I can't dig up a cite right now, but I was poking around the internet and found some blogs that were cautioning that if LC went under, that it would take all our loans with it. And with three million in losses this summer (again, citeless), I was afraid that their cash reserves were getting low.

Jeff has told me that's not the case, however. He said that if Lending Club were to have absolutely no revenue stream...that is, if they didn't collect a dime from anybody...they have enough cash to keep them in business for the next four years.

The business model was to turn profitable this year. But in April or May, a venture capitalist dropped a bunch of cash on them, so they've spent all that cash expanding, and are therefore at a deficit again. They plan to turn profitable by next year, he says.

From March 09 to March 10, they lost $10 million. I got that from their SEC filings available on their site. But it appears they have enough assets to last a while.

In other news, future development projects include cleaning up the trading platform so that the filters are more useful and actually function. Jeff told me that the best way to get changes made is to use the feedback button on the site.

So that's the jist of it. With the interest rates lowered, I don't know if I'm actually going to keep investing or not. But I'm not worried about them walking with our money anymore.