5 December 2007
P2P lending site Zopa is set to launch America this week, where it will compete with firms like Prosper and CircleLending, recently rebranded as Virgin Money USA.
Zopa's US version will differ from its UK site as investors will have their funds 'federally insured', instead of spreading their risk by loaning small amounts to multiple borrowers. The firm hopes this guarantee will allow it to attract capital quickly as it is not something competing P2P sites currently offer.
Zopa, which launched two years ago in the UK, says it has around 175,000 users, roughly one third of which are lenders.
It recently received a £6.6 million investment from Bessemer Venture Partners, Benchmark Capital and Wellington Partners, and has long been expected to break into the American market.
P2P lending is a growing market in the US according, Prosper and Lending Club loaned out a combined $100 million this year alone. It predicts the market will be worth $1 billion by 2010.
Virgin Money USA is a slight variation from other P2P lending sites as it concentrates on enabling loans between family and friends. Prosper and Lending Club facilitates unsecured loans between strangers.
Keep up to date with industry and Nomensa news by signing up to Nomensa newsletters.
