Wednesday, June 11, 2014

LendingMemo Interview with Renaud Laplanche

LendingClub is preparing an IPO. Renaud Laplanche sits down with Simon Cunningham of LendingMemo to explain why.

"There are typically three reasons why a company goes public, though interestingly only one really applies to Lending Club.

The first reason companies have an IPO is to raise capital, especially if they are not yet profitable...

The second reason companies go public is to provide liquidity for existing shareholders...

Really, the last reason is why we are considering an IPO, which is to use it as an opportunity to raise awareness for the company and better establish the brand...

I would like direct retail investors to continue to be 25-30% of the platform, with individual investors (whether direct retail or through a fund) to be more than 50% of the platform. The reason for this is that the retail and individual investor base will be more loyal to us, more predictable and more likely to maintain their investments in an economic downturn."

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