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eCommerce - Monday, February 13, 2006

eLoan Founder's Next Biz Launches

Chris Larsen, who founded and led E-Loan which was bought last year for $300M, has re-emerged in San Francisco with his latest venture - Prosper.com

The startup is backed with $20M by Accel Partners, Benchmark Capital, Fidelity Ventures, and Omidyar Network.

Prosper.com is an online version of the feel-good Building & Loan story from the movie Its A Wonderful Life. The service seeks to cut out bank middlemen for personal loans and have citizens loan money directly to other citizens.

Credit checked individuals post a request for loan less than $25K at a set interest rate, then individuals can agree to loan all or a portion of that amount. The pitch is that they will make more than they would in a money market account. Plus Prosper.com targets affinity groups, like Standford alums who want to support a student or pet-owners looking to buy a new dog-run.

Among The Listings, A Guy From Pricey Los Altos Hills Is Looking To Borrow $10K To Pay Off His Debt

Prosper.com just wrapped up a two-month testing period and claims it had attracted lenders with a total of about $750K to lend.

Read - It's Like Lending to a Friend, Except You'll Get Interest (NY Times)