Prosper.com, a company which offers a peer to peer lending marketplace, recently completed its “Series D” funding round which provided the company with $14.7 million in new capital, however the deal was on much less favorable terms for Prosper than its A, B and C rounds were.
Prosper Marketplace received its last round of funding in June 2007, in which the company provided its investors with 2,063,448 new shares for $19,919,009 or about $9.69 per share. This “Series C” round was a significant jump up in the per-share valuation of the company from its “Series B” round of the company which valued shares at $3.78 each.
The company’s “Series D” round involved the issuing of 20,340,705 shares for $14,700,000, which is a valuation of $0.72 per share, just 7.46% of what they were valued at in June 2007–not exactly encouraging news for the company’s previous investors whose shares are worth 93% less on paper than they were at the close of its C round of funding.
Before Prosper had received its “Series D” round of funding, it had a total of 14,752,825 outstanding shares. Prosper Gave away more than 20 million new shares, or about 58% of the company, to the investors that participated in its D round of funding.
