Former Citigroup CEO Backs P2P Startup In $2.7M Round

Former Citigroup CEO Vikram Pandit has revealed that he has invested in New York-based peer-to-peer lending startup the Orchard, The Wall Street Journal reported on December 4.

Pandit is part of a team of investors who provided $2.7 million in capital to the Orchard. SEC documents are expected to be filed on Thursday to record the fundraising.

“The investment is a bet that borrowers will continue to flock to peer-to-peer and other ‘shadow lenders,’ which have expanded rapidly since conventional banks cut back on loans during the financial crisis,” the Journal explained.

While the move does signal a willingness on behalf of investors to back new P2P startups, past data indicates cash and check are still the most popular P2P transactions. To see the most recent statistics, click here.

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