AAA CompuCredit prospers with latest deal

CompuCredit prospers with latest deal

CompuCredit, a Nasdaq-listed financing company, has reinvested in a consortium providing $17.2m to US-based social lending website Prosper.com.

Alongside CompuCredit were venture capital firms Draper Fisher Jurvetson, Crosslink Capital, Accel Partners, Omidyar Network, TomorrowVentures, QED Investors and Volition Capital.

Investment bank Victory Park Securities advised on the latest round.

In total, Prosper has raised $75m and Jim Catlin, Prosper’s executive vice-president of acquisition and risk management and former risk management executive at bank Capital One, said: "We’ve combined industry best practices of credit leaders such as Capital One with proprietary social lending insights, allowing us to consistently deliver best-in-category returns of greater than 10.4% and lower-than-expected loss rates for investors."

In February, CompuCredit agreed to provide an undisclosed sum to peer Twitpay, which provides software to help non-profit organisations raise funds over Twitter, social gaming developers offer virtual currency and retailers with electronic commerce.

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