April 27, 2011 07:00 ET Celebrates Strong Lender Returns; Offers Bonus to New Lenders

To Highlight Average Returns of 10.4 Percent*, Prosper Will Give Away $104 Bonuses to 200 New Lenders Starting Wednesday

SAN FRANCISCO, CA--(Marketwire - Apr 27, 2011) -, America's first peer-to-peer lending marketplace with more than one million members and $228 million in funded loans, today announced a new promotion to highlight the 10.4 percent* average returns Prosper lenders are earning. Starting at noon PDT on Wednesday, April 27, 2011, Prosper will give a $104 bonus to the first 200 new lenders to sign up.**

"P2P lending continues to gain wider adoption as an asset class for investors, and the enhancements we've made to the Prosper platform over the past two years have resulted in a very vibrant marketplace and attractive average returns for our lenders," said Chris Larsen, co-founder and CEO of Prosper. "We want to encourage more investors to try so that they can experience firsthand the ease of investing on Prosper and the great experience of providing affordable personal loans to more qualified borrowers. If you've been wanting to give P2P lending a try, this is a great time to take the next step."

Starting Wednesday, April 27, 2011 at 12:00 p.m. Pacific Daylight Time, Prosper will give a $104 bonus to the first 200 new lenders to sign up.**

To learn more about our lender returns, competitive personal loans, small business loans and auto loan rates please visit

* Net Annualized Returns represent the actual returns on Borrower Payment Dependent Notes ("Notes") issued and sold by Prosper since July 15, 2009. To be included in the calculation of Net Annualized Returns, Notes must be associated with a borrower loan originated more than 10 months ago; this calculation uses loans originated through May 31, 2010. To calculate Net Annualized Returns, all payments received on borrower loans corresponding to eligible Notes, net of principal repayment, credit losses and servicing costs for such loans, are aggregated then divided by the average daily amount of aggregate outstanding principal for such loans. To annualize this cumulative return, the cumulative number is divided by the dollar-weighted average age of the loans in days and then multiplied by 365. Net Annualized Returns are not necessarily indicative of the future performance of any Notes. All calculations made as of March 31, 2011.

** To be eligible for the bonus, you must complete the Prosper Lender Registration process starting at noon Pacific Daylight Time on Wednesday, April 27, 2011 (the "Promotion Date"). Only the first 200 customers who complete the process will be eligible for the $104 bonus. The $104 bonus can only be used for investments in Prosper Notes; at its discretion, Prosper may withdraw the bonus in the event that the funds are not invested within 14 days of the Promotion Date.

About Prosper

Prosper Marketplace Inc. is America's first peer-to-peer lending marketplace with over one million members and more than $228 million in funded loans. Prosper allows people to invest in each other in a way that is financially and socially rewarding. Borrowers list loan requests between $2,000 and $25,000 with loan terms of 1, 3, or 5 years. **For example, a $5,000 loan with a 3-year loan term for a person with a Prosper Rating of B and one or more previous loans, would have a 14.12% APR and scheduled monthly payments of $166.05. Individual and institutional investors invest in minimum increments of $25 on loan listings they select. In addition to credit scores, ratings and histories, investors can consider borrowers' personal loan descriptions, endorsements from friends, and community affiliations. Prosper handles the servicing of the loan on behalf of the matched borrowers and investors.

Prosper was co-founded by Chris Larsen, co-founder of E-LOAN. Prosper has raised $57.7 million in venture capital and is backed by financial and technology luminaries including, Jim Breyer of Accel Partners; CompuCredit; Omidyar Network; Capital One Co-founder Nigel Morris of QED Investors; Court Coursey of TomorrowVentures; and Larry Cheng of Volition Capital.

Notes offered by Prospectus.

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