Should investors value Lending Club as a marketplace technology company, or a specialty finance company – 3 important facts investors should note during the valuation process
The Lending Club is a public company (https://finance.yahoo.com/quote/LC?ql=1&p=LC) In the P2P space.
The case explores the history and follows the path of the founder and of the company before and after its IPO. The case explores the challenges in operating a fin-tech company and grow and scale its operations.
Questions to think about for your 2-page report using the questions below as a guide. Your report should be in the form of a consultant’s report, not simply a Q&A.
2. Should investors value Lending Club as a marketplace technology company, or a specialty finance company? Why?
3. Explain why lenders are able to obtain a higher interest rate compared to investing their money in a bank.