Half-Billion Dollar IPO For LendingClub

Online loan company LendingClub is chasing a half-billion-dollar IPO, according to an SEC filing the company made Wednesday (Aug. 27).

“The company had net revenue of $86.94 million in the first half of 2014, up from $37.09 million in the year-ago period. The cost of that revenue growth swung LendingClub from profit to loss,” TechCrunch reported. “In The first half of 2013, LendingClub had net income of $1.74 million. In the same period this year, the company lost $16.49 million.”

The SEC paints a non-traditional loan-making approach: “We generate revenue from transaction fees from our platform’s role in matching borrowers with investors to enable loan originations, servicing fees from investors and management fees for investment funds and other managed accounts. We do not assume credit risk or use our own capital to invest in loans facilitated by our platform. The capital to invest in the loans enabled through our platform comes directly from a wide range of investors, including retail investors, high-net-worth individuals and family offices, banks and finance companies, insurance companies, hedge funds, foundations, pension plans and university endowments, and through a variety of channels, such as borrower payment dependent investment securities and whole loan purchases.”

TechCrunch reported that LendingClub has “previously raised $392.9 million in venture capital over the course of 12 rounds — the company’s most recent capital infusion, $65 million, touched down in April of this year. LendingClub reported cash of just under $67 million.”