Lending Club

Lending Club

By
Robert Siegel, Matthew Saucedo
2016|Case No.E597| Length 15 pgs.

Lending Club follows the path of founder and CEO Renaud Laplanche as he scales his successful P2P lending company both pre- and post-IPO. From debating with bankers on the proper valuation metrics for the company, to managing customer acquisition costs as the competitive landscape rapidly changes, the Lending Club case explores several key challenges that come with operating a fin-tech company at scale.

Also see: E597B: Lending Club Part B.

Learning Objective
The Lending Club case introduces students to the world of peer-to-peer lending. It explores Laplanche’s journey as he struggles to convince bankers that Lending Club is worthy of a marketplace valuation, as opposed to the specialty finance company valuation that bankers were more inclined to assign. It also discusses customer acquisition practices in the face of potentially rising costs—as well as growing safely while adhering to regulation.
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