Yesterday, LendingRobot received $3 million in funding for its platform that helps individuals invest like pros on P2P lending sites, Prosper and Lending Club. Europe-based Runa Capital led the Series A round.
The new funding, plus the undisclosed amount received in a Seed round last April, brings LendingRobot’s total raised to somewhere north of $3 million.
The Washington state-based company plans to use the funds to add new features, enhance its prediction models, and accelerate growth.
LendingRobot uses an algorithm to invest users’ available balance in their Prosper and Lending Club accounts to get them the best return.
How is this different from Prosper’s QuickInvest or Lending Club’s Automated Investing?
Think of it as Bid Sniper software for eBay-meets P2P Lending. Popular loans are funded seconds after they are posted on Prosper or Lending Club, usually by institutional investors or hedge funds with automated loan investing technology. By the time the average individual makes their investments, often times the best loans have already been snatched up.
Additionally, it offers its 1,000+ users more than 40 filtering criteria to insure their cash is being invested how they want.
LendingRobot has no up-front fees, and manages users’ first $10,000 for free, after which it takes 0.45% per year.
LendingRobot was recently named a finalist in SWIFT Innotribe’s Startup Challenge.