OnDeck Capital, which offers short-term loans to businesses of between $5,000 and $250,000, and Prosper Marketplace, a peer-to-peer lending marketplace, today announced their new strategic partnership, according to a story in New York Business Journal. The partnership was made public at the LendIt financial tech conference in Midtown.
Previously, the Manhattan-based OnDeck and the San Francisco-based Prosper had a referral deal, but will now work on strategizing their upcoming business lines and marketing efforts together.
OnDeck CEO and co-founder Noah Breslow said,
Our partnership with Prosper Marketplace, a like-minded technology innovator, will enable us to offer more small businesses a seamless experience to meet their financing needs.
In mid-December, OnDeck made news when it began publicly trading, and raised $200 million on its first day. The company uses a propriety database tool to quickly evaluate applicants’ credit risks. It has delivered more than $2 billion, and served more than 700 industries. In addition, OnDeck has ranked 11th on the Forbes 100 Most
Promising Companies list.
Speaking about the Prosper’s partnership with OnDeck, Prosper CEO Aaron Vermut said that the company is looking forward to offering current clients more options for their business. He added, “We are excited to work with an industry leader like OnDeck to help our customers that are looking for loans for their small businesses.”
Prosper also recently caught media attention after closing a $165 million funding round led by Credit Suisse Group’s Next Investors, with an initial valuation of approximately $1.9 billion.
New York Business Journal notes,
By working together, [Lending Club and Prosper are] allowing each other to sell a more integrated series of options and are taking on the giant of tech-enabled borrowing, LendingClub (NYSE: LC), which does both.