"Marketplace Lending: Evolution, Challenges & Opportunities" - Prosper Marketplace President, Ron Suber's keynote presentation from LendIt China 2016

1. MARKETPLACE
EVOLUTION, CHALLENGES
& OPPORTUNITES
互联网金融平台的机会与挑战
LENDING

2. Ron Suber

3. CAYMAN ISLANDS
MIAMI
NEW YORK
CHICAGO
SAN FRANCISCO
LOS ANGELES
UK
ITALY
ISRAEL
INDIA
CHINA

4. ONE LAST THING…
Marketplace Lending
Internet Finance
Modern Finance
Online Market for Credit
Balance Sheet Lending
Inclusive Lending
Finternet
Digital Lending

5. What Are We?
FINTECH
A finance company that uses technology to offer
products and services beyond loans that help people
achieve financial well-being.

6. Key
Components
People Growth Companies
Data Analytics
Marketing Expertise
Capital Markets
Great Underwriting

7. What Are We?
MARKETPLACE
LENDERS
A platform that connects creditworthy borrowers to
investors who want solid returns.

8. We can permanently shift how people interact with
their personal finances on a day-to-day basis.

9. 9
Marketplace Lenders S&P 500 All U.S Stocks
International Bonds Corporate Bonds High Yield Corporate Bonds
+5.97% +1.13% -.27%
+7.44% +1.13% -4.79%
We can provide investors with core product that
remains attractive.
*12-month performance as of July 6, 2016
1 Year Performance*

10. Our Common Goals Unchanged
• Change how people invest, borrow and pay
• Provide convenient, cost-efficient access to capital
• Provide investors simple and direct access to
assets with attractive risk-adjusted yields

11. Challenges Largely Unchanged
• Economic Downturn
• Unemployment
• Rising Interest Rates
• Information Security
• Platform Failure

12. How Did We Do?
Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016
回顾

13. • Growth
• Originations Per Month
• Equity Capital Funding
• Race to Unicorn
Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016

14. • Marketplace Lenders & Banks
• CPA / Conversion
• Product Expansion
Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016

15. • Focus on Profitability
• Decline in Public Valuations
• Platforms Fail
Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016

16. • Funding Pressure
• Rates Increase
• Spreads Widen
• Press Skepticism
Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016

17. • Platforms Raised Rates
• Market Volatility (Bond & Stock)
• Platforms Scale Back
Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016

18. Month Over Month 3-Month Return
12-Month Return
+.739% +1.19%
+5.97%
2011 2012 2013 2014 2015 2016
1400
1350
1300
1250
1200
1150
1100
1050
1000
Orchard Consumer
Marketplace Lending Index*
Asset Performance
* 12-Month data as of July 6, 2016

19. What’s one thing that’s more clear now
than a year ago?
“Underwriting
is still the most
important ”
“We are a
fixed income
asset-class ”
“Business is
about trust and
transparency”
“China and
Europe are big!”
“There is a need
for permanent
capital”
“There are more
opportunities to
work together”

20. It’s not just about
origination growth.
It’s about: building
companies that last and
maintaining equilibrium.

21. FOUR
FUNDAMENTALS
FOUR
FUNDAMENTALS
四大基石

22. Performance
Through Cycles
In Every Fixed
Income
Portfolio
Trusted Global
Brands
Build the
Ecosystem
Continue to focus on pricing, credit, risk,
underwriting and collections
New doors and windowsTrust and transparencyEncourage data visualization and
3rd party validation

23. ONE LAST THING…
GLOBAL
OPPORTUNITY
国际机遇

24. ONE LAST THING…
Understanding 理解
Communication 沟通
Investment 投资
Cooperation 合作
Access 接入
Engagement 参与
Distribution 分享
Respect 尊重

26. 26
Disclosures
This presentation includes forward-looking statements. Forward-looking statements inherently involve many risks and uncertainties that could cause
actual results to differ materially from those projected in these statements. Where, in any forward-looking statement, we express an expectation or belief
as to future results or events, such expectation or belief is based on the current plans and expectations of our management and is expressed in good
faith and believed to have a reasonable basis, but there can be no assurance that the expectation or belief will result or be achieved or accomplished. All
forward-looking statements speak only as of the date of this presentation and are expressly qualified in their entirety by the cautionary statements
above. We undertake no obligation to update or revise forward-looking statements that may be made in this presentation to reflect events or
circumstances that arise after the date made or to reflect the occurrence of unanticipated events.
All personal loans are made by WebBank, a Member of DIC. All personal loans through Prosper are unsecured, fully amortized personal loans. Neither
Prosper Funding LLC nor Prosper Marketplace, Inc. are registered as an investment adviser with any federal or state regulatory agency. The
information contained in this presentation is for informational purposes, and should not be construed as individually tailored investment advice or as a
recommendation with respect to any security or investment approach. This presentation has been prepared without regard to the circumstances and
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