Monday, May 11, 2009

Prosper Halts Lending, Again

San Francisco-based person-to-person lending firm Prosper is apparently shutting down its lending operations, again, after re-opening its services to California lenders on April 28th. According to a notice on the firm's site, the firm has decided to "voluntarily shut down" its operations in order to complete SEC approval for its platform. The firm said that it has discontinued its California intrastate offering, which it announced just two weeks ago. Prosper had originally said it would reopen to California lenders and borrowers anywhere, after getting approval from the California Department of Corporations. Proper is venture backed by Accel Partners, Benchmark Capital, DAG Ventures, Fidelity Ventures, Meritech Capital, and Omidyar Network.