Brian Zwerner, Managing Principal of Kensington Blake Capital, announces that the firm has begun an investment program on the Peer-to-Peer lending site of Prosper. Prosper offers consumer loans primarily used to refinance and consolidate credit card debt. Investors such as Brian Zwerner are able to view 20+ individual loan characteristics when selecting the loans to invest in.

1. A NEW PATH FOR SMART MONEY.

2. Overview and Update
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First US peer-to-peer lending platform; launched in 2006
Pioneered the development of this asset class
Prosper Marketplace, Inc. is backed by top investors including Sequoia Capital, Accel Partners and Benchmark Capital
Prosper Marketplace, Inc. management team brings experience from Wells Fargo, Merlin Securities, Bear Stearns, Barclaycard US, BivioNetworks and CNET Networks
Prosper Marketplace, Inc. has 85employees with a broad range of experience and complimentary skill sets
Figures shown above are dollar weighted.

3. What is peer-to-peer lending?
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High credit costs
Lack of available credit
Hidden fees
High cost base
(branches, ATM, etc.)
Competitive rates
Access to credit
Transparent terms
Low cost base
Traditional Bank Financing
Peer-to-Peer Lending

4. CURRENTMARKET SIZE*
$2.8 TRILLION
ADDRESSABLEMARKET**
$850 BILLION
Peer-to-peer lending
Currently ~$3.3 billion out of $850 billion
The Investment Opportunity: Disrupting consumer credit
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Consumer credit has been a large, consistently profitable asset classEquivalent to sixth-largest GDP in world
* Consists of consumer credit card debt and installment loansand does not include loans secured by real estate.
** Consists of revolving consumer debt outstanding
Source: Federal Reserve
Well-established market. Consumer credit data starts in Q4 1945
Current market size excludes home related debt
Small loan size. Credit card average balance is $7,300
Primary demographic user of consumer credit is 30-44 years old

5. Solving the central problems PROPRIETARY & CONFIDENTIAL . PROSPER FUNDING LLC . © 2013
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Investors face a difficult environment
Likelihood of suppressed future economic growth
Portends low returns and high volatility for most asset classes
Fixed income offers little yield and a lot of duration risk
Cash has a negative return
Borrowers face a difficult environment
Uncooperative lending institutions
Limited access to capital
Desire to improve balance sheet and pay down debt is restricted by these two factors

6. Unsecured consumer interest rates remain high PROPRIETARY & CONFIDENTIAL . PROSPER FUNDING LLC . © 2013
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Durable interest rate levels throughout economic cycles
Small loan size and lack of collateral cause above market interest rates
Source: Federal Reserve, Prosper

7. The history of consumer credit
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Positive lending spread in 26 of 26 years throughout volatile economic and interest rate cycles
Banks keep majority of consumer credit loans on balance sheets due to steady profitability
Little previous access for investors. Only low yield ABS and private transactions surrounding distressed assets
Avg. credit card interest rate -credit card charge-off rate = est. lending spread on consumer credit (1985 to 2013)
* Federal Reserve data

8. How peer-to-peer lending works
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Loan Request
Principal & Interest
Principal & Interest
Loan Criteria
Value Exchange between Borrowers and Lenders
Loan Funding
Loan Originates

9. Attracting creditworthy borrowers
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AVERAGE CREDIT SCORE
703
AVERAGE INCOME
$74,238
As reported by borrowers
The Prosper marketplaceHighly creditworthy borrowers
Source: Prosper, dollar weighted originations, 6months ending January 31, 2014
•Lower fixed rates
•Fully amortizing loans
•No hidden or tricky fees
BORROWER CREDIT PROFILE
LOAN PURPOSE
BORROWERS GET
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10. Borrower requests a loan
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11. Lenders choose loans to fund
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12. Transparent reporting
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Account Summary

13. Risk management process
Risk process is rigorous, efficient and thorough
Targeting and credit policy determine who is approved and at what expected loss rate
Underwriting process verifies borrower information
Tracking and analysis of performance establishes feedback loop to improve quality of models
Continuously looking for arbitrage pockets and eliminating them
Inbound Inquiry
Data Collection
Credit Scoring
Servicing
Verification
Direct-to-site
Affiliates/partners
Direct mail
Borrower data
Bureau pull
Proprietary scorecard
Additional adjustments
Rating assigned
Verify identity
Verify address
Fraud screen
Verify bank account
Verify employmenton majority of loans
Lender statements
Payment processing
Customer relations
Collections
1-15 dpd: Internal
16+ dpd: External
120 day charge-off policy
Post c/o: External
Originate Loans
Identify Segment Variances and Drivers
Measure Performance
vs. Expectations
Adjust Policy, Product, Pricing
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14. Expected Return by Prosper Rating
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Expected Returns by Prosper Rating for seasoned loans (“Seasoned Returns”)3
Source: Prosper, as of September 30, 2013

15. Consistent lender returns
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Source: Prosper, September 30, 2013
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16. Hypothetical portfolio example*
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* This hypothetical example is not intended to be indicative of any specific investment. The hypothetical example is included for illustrative purposes only and is not intended to represent the past or future performance of any specific investment.
Allocation
Lender Yield5
Estimated Loss2
Estimated Return2
3 year -65%
AA
5%
6.72%
1.59%
5.00%
A
5%
10.48%
3.26%
6.83%
B
15%
14.47%
5.23%
8.47%
C
15%
18.49%
7.58%
9.65%
D
10%
22.82%
10.50%
10.45%
E
10%
26.70%
13.14%
11.19%
HR
5%
30.33%
15.74%
11.85%
5 Year -35%
AA
5%
7.32%
1.79%
5.37%
A
5%
10.81%
3.32%
7.09%
B
10%
15.15%
5.11%
9.25%
C
5%
19.74%
7.38%
11.03%
D
5%
24.27%
10.36%
11.93%
E
5%
28.46%
13.50%
12.42%
TOTALS
18.32%
7.64%
9.38%
Source: Prosper, September 30, 2013

17. Lower overall portfolio risk, greater current income
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Prosper’s monthly returns show low correlation to other asset classes*
Low standard deviation of returns helps reduce overall portfolio volatility
High current income increases overall portfolio income
Source: Prosper
Source: Bloomberg, Prosper / August 2009 through latest data points available as of September 30, 2013
* Any comparison of Prosper Notes with other fixed-income products as potential investments should include consideration of numerous additional factors beyond duration and yield, including but not limited to government-backing, balance sheet strength, credit insurance and overcollateralization.

18. Balancing volatility and returns
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Higher rated loans greatly enhance overall portfolio stability
The right mix across rating grades will vary depending on an investor’s risk-tolerance
* Prosper return expectations calculated using 100 loan portfolios by credit grade overlaying simulation of economic downturns to projected estimated returns.
** Risk free asset assumed to have a constant 1.20% return (5 year Treasury yield as of May 30, 2013).

19. Working closely with regulators
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Investing Activities Regulated by the SEC
Notes are issued pursuant to a registered public offering governed by a Form S-1; Notes have been registered since July 2009
Prosper Marketplace, Inc. and Prosper Funding LLC are public filing companies (file 10-Ks, 10-Qs, etc.). Prosper Marketplace, Inc. has 5 years of audited financials and Prosper Funding LLC, which was formed in 2012, has 1 year of audited financials
State-by-state Blue Sky registration also required: Notes are registered in 30 states, plus DC
Borrower Activities are Subject to Consumer Lending Laws
Prosper is subject to Federal and state consumer lending laws and other laws applicable to financial institutions (privacy, anti-money laundering, etc.)
Partnership with WebBank exempts Prosper Loans from state-by-state interest rate and fee caps
Prosper has a Deep Regulatory Expertise
Developed through years of careful analysis and extensive interaction with Federal and State Regulators
Prosper Marketplace, Inc. has an experienced in-house legal team with expertise in securities and consumer finance, and has developed a sophisticated compliance management system
Advised over a number of years by premier outside counsel with strong regulatory relationships (DC offices of Covington & Burling and Skadden Arps)

20. Prosper Marketplace, Inc. Contact Information
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RonSuber
Head of GlobalInstitutional Sales
T: (415) 593-5478
rsuber@prosper.com
John Higgins
Director, Institutional Relations
M: (203) 809-4420
JHiggins@prosper.com
Eric Thaller
Head of Institutional Relationships
T: (415) 593-5588
ethaller@prosper.com
Institutional Relations

21. Disclosures
IMPORTANT DISCLOSURES
Borrower Payment Dependent Notes (the “Notes”) are offered pursuant to the Prospectus, which accompanies this presentation and which is also available at www.prosper.com/prospectus. Persons considering investing in Notes should review the Prospectus in its entirety.
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. You should carefully read the factors described in the “Risk Factors” section of the Prospectus for a description of certain risks that could, among other things, cause our actual results to differ from these forward-looking statements.
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 and in the Prospectus. 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.
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 asa recommendation with respect to any security or investment approach. This presentation has been prepared without regard to the circumstances and objectives of its participants and should not be relied upon as authoritative or taken in substitution for the exercise of judgment by any individual. Each individual should consider the appropriatenessofany investment decision having regard to his or her own circumstances, the full range of information available and appropriate professional advice. Prosper Funding LLC and Prosper Marketplace, Inc. recommend that each individual seek independent investment and financial advice concerning any services or investments discussed in this presentation.
1Borrower credit scores are Experian FICO08, except that borrower credit scores for all listings begun prior to September 6, 2013 are Experian ScorexPlus.
2Estimated return is the difference between the estimated effective yield and the estimated loss rate. Estimated effective yieldis equal to the current yield (borrower interest rate minus the 1% servicing fee) (i) minus estimated uncollected interest on charge-offs, (ii) plus estimated collected late fees. The estimatedloss rate is the estimated principal loss on chargedoff loans. All estimates are based on the historical performance of Prosper loans for borrowers with similar characteristics. The calculations of estimated return, estimated effective yield, and estimated loss rate require significant assumptions about the repayment of loans, and lenders should make their own judgments with respect to the accuracy of these assumptions. Actual performance may differ from estimated performance.
3Seasoned Return calculations represent historical performance data for the Borrower Payment Dependent Notes ("Notes") issued and sold by Prosper Funding and Prosper Marketplace, Inc. since July 15, 2009. To be included in the calculations, Notes must be associated with a borrower loan originated more than10 months ago; this calculation uses loans originated through November 30, 2012. Our research shows that Note returns historically have shown increased stability after they've reached ten months of age. For that reason, we provide "Seasoned Returns", defined as the Return for Notes aged 10 months or more.
To calculate the Return, all payments received on borrower loans, net of principal repayment, credit losses, and servicing costsfor such loans, are aggregated and then divided by the average daily amount of aggregate outstanding principal. To annualize this cumulative return, it is divided by the dollar-weighted average age of the loans in days and then multiplied by 365.
All calculations were made as of September 30, 2013. Seasoned Return is not necessarily indicative of the future performance on any Notes.
4 To calculate the lender return by month of origin, all payments received on borrower loans originated during that month (i) minus principal payments (ii) minus servicing fees (iii) minus charge-off’sare aggregated and then divided by the average outstanding principal balance. To annualize this return, it is divided by the dollar-weighted average age of the loans in months and then multiplied by 12. Seasoned vintages are categorized as those vintages that are at least 10 months old.
5 Lender yield equals borrower interest rate minus Prosper servicing fee.
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