Prosper.com Microfinance - SVMN.net mtg 2007-09-10

Prosper Marketplace

Prosper is like an “eBay for Money”

Marketplace for money

Brings together borrowers with people who have money to lend

Administers lending process including payments and collections

New asset class

Anyone with as little as $50 can lend

Community decides where and why to grant credit

Leverages power of community

Groups and endorsements provide shame, acquisition and support

Existing Consumer Credit Markets Institutional Markets - Wall Street Community Lending - Early US S & L’s - Informal Asian Lending

Good : borrower shame/loyalty

Good : low marketing costs

Bad : risky - no diversification

Good : great diversification

Bad: no borrower loyalty

Bad : high marketing costs

= Borrowers = Lenders

Prosper combines best of both markets Group Leader marketing = Lenders = Borrowers = Group Leader Lender diversification Borrower reputation Friends, Endorsements reputation/marketing

$900 billion US credit card market

Announced Japan JV - $200 billion market

Market Size – Unsecured consumer credit Source: SMR Research 2005 and Financial Services Agency of Japan 2006

Prosper Stats Users: 410,000 Loans by $: $87,000,000 Borrower Loans: 15,000 Promissory Notes: + 1.2 million Payments to Lenders: 2,500,000 Discussion Posts: 370,000

Backing

VC Backing

$40 million raised

Outside Directors

Jim Breyer, Accel Partners

Wal-Mart, Facebook

Bob Kagle, Benchmark Capital

eBay, E-Loan

Larry Cheng, Fidelity Ventures

Verid Board

Paul Hazen

Former CEO Wells Fargo

Listings

Listing Summary

Group Information

Endorsements from Friends

Bid History

Deep Operational Integration Banking and Finance Collection Agencies Credit Reporting Agencies Anti-Crime Scheduled: Fall ‘07 Scheduled: June ‘07 Scheduled: Fall ‘07

First Wave (Web 1.0)