Lending Club acts as an intermediary of sorts between borrowers and people that want to invest in loans and earn a return. It provides borrowers with an alternative to traditional bank loans and investors earn a return on a portfolio of loans. Lending club screens the borrowers by running credit checks and determining the loan amount and terms.
Venture capital investors in Lending Club include Bay Partners, Canaan Partners, Foundation Capital, Morgenthaler, Norwest Venture Partners and Union Square Ventures.
Links to articles on the financing: