SOURCE: RaiseCapital.com

October 19, 2009 10:00 ET

RaiseCapital.com and Prosper.com Team Up to Provide Credit Crunch Relief

PORT WASHINGTON, NY--(Marketwire - October 19, 2009) - RaiseCapital.com, the premiere online destination for entrepreneurs to showcase their business ideas and capital needs directly to investors, and Prosper, America's largest peer-to-peer lending marketplace, today announced a joint marketing agreement aimed at helping small to midsize businesses procure financing at a time when they need it most.

Faced with decreased limits on personal credit cards, increased interest rates on commercial loans and the unavailability of home equity lines of credit, countless small and mid-sized business owners are finding it increasingly difficult to obtain the funds necessary to maintain and grow their businesses. Although the federal government is currently exploring a number of financial aide packages aimed at small and medium business owners, the resulting relief will likely be too little and too late for many of these individuals.

"Prosper.com and RaiseCapital.com serve different market segments," stated Richard Singer, CEO of RaiseCapital.com. "Jointly marketing each site is a natural fit for both companies and will help both RaiseCapital.com and Prosper.com to provide alternative financing in this difficult credit environment."

"The reality is that the backbone of America's economy -- small and midsize businesses -- is simply not reaping the benefits of the cash that has been infused into 'too big to fail' institutions. Alternative financing models, like RaiseCapital.com and Prosper, can help bridge this critical gap," added Singer.

The joint marketing of each site provides additional avenues of funding to users of each site. At Prosper.com, borrowers can list small business loan requests between $1,000 and $25,000, which is perfectly in line with the start-up and working capital requirements of micro and small businesses. RaiseCapital.com members are typically small to midsize companies that are seeking investment capital in excess of $100,000.

About RaiseCapital.com

RaiseCapital.com is an online community, where entrepreneurs can display their business ideas and capital needs to investors. Whether your venture is a start-up or existing business, RaiseCapital.com is the perfect vehicle for entrepreneurs seeking capital.

As the premiere online destination for entrepreneurs and investors, RaiseCapital.com attracts, through its national marketing reach, scores of serious investors looking for interesting investment opportunities.

RaiseCapital.com makes it possible for individuals and businesses to market their venture for a very little one-time cost. As a RaiseCapital.com member seeking capital, you will be able to market your venture to investors using text descriptions, pictures and/or streaming video. In addition, all videos will be featured on RaiseCapitalTV.com, allowing you to "Broadcast Your Venture To The World."

Over 4600 Ventures are currently part of the RaiseCapital.com community.

About Prosper

Prosper is America's largest peer-to-peer lending marketplace with over 850,000 and $185 million in loans. It pioneered peer-to-peer lending, which allows people to invest in each other in a way that is socially and financially rewarding. Prosper's auction model provides an open and transparent way to get a personal loan or invest in loans on terms that are favorable to everyone involved in the transaction.

People and institutions list and bid on loans using Prosper's online auction platform. Borrowers can list loan requests between $1,000 and $25,000 on Prosper and set the maximum rate they are willing to pay an investor for the loan, and tell their story. People and institutional investors register on Prosper as lenders, then set their minimum interest rates, and bid in increments of $25 to $25,000 on loan listings they select. In addition to criteria commonly used by institutional lenders, such as credit scores and histories, Prosper lenders can consider borrowers' personal stories, endorsements from friends, and community affiliations.

Once the auction ends, Prosper takes the bids with the lowest rates and combines them to facilitate the funding of one simple loan to the borrower, and then issues what are called "Notes" to all the winning bidders. Prosper handles all on-going loan administration tasks including loan repayment and collections on behalf of the matched borrowers and investors. Prosper members are then able to trade Notes with other members on the Folio Investing Note Trader platform, provided by Foliofn Investments, Inc.

Notes offered by Prospectus.

Contact Information

  • RaiseCapital.com Press Contact:
    Sweta Shah
    5W Public Relations
    (212) 584-4314
    Email Contact

    Prosper Press Contact:
    Tiffany Fox
    Prosper Communications Director
    (415) 593-5416
    Email Contact
    Twitter: @tiffanykfox