Profitability a Key Focus for Marketplace Lending

Venture capital investment in marketplace lending is slowing as firms are struggling to become profitable; in 2015 venture capitalists invested $5.2 billion in 132 marketplace lending deals; in 2016 that total is down to $2.2 billion and 65 deals, according to a report from PitchBook Data; Moody’s has also reported on a lack of profitability in the sector; with a key focus on achieving profitability it seems there are a few themes that will be important to watch in the industry including investor channels, unified methodology, capital usage, partnerships to increase demand and more reliance on institutional cash.  Source