CircleLending Becomes Virgin Money USA; Gets Makeover and Millions in Funding
Mark Hendrickson
13 comments »
Peer-to-peer lending service CircleLending has been taken under the wings of Richard Branson’s Virgin empire and rebranded as Virgin Money USA.
Virgin’s US investment firm recently bought a majority stake in the Waltham, Massachusetts company, which acts as an online middleman for friends and family who want to loan each other money. The exact amount of money invested by Virgin has not been disclosed.
Virgin Money USA differs from other online lending services, because it focuses on loans between people who are familiar with one another. Prosper, Lending Club, Kiva, and Zopa, on the other hand, facilitate loans between relative strangers.
Thanks for the tip Ryan.
I’d have thought this constitutes banking and therefore should be heavily regulated.
So now Richie wants to handle our money? Aren’t the hun’rds of otha services his empire gives enough?
Impressive, but why didn’t they come to me?
http://fakesteveballmer.blogspot.com
@ Stevie Wonder Ballmer (Fake and real) - Because….they….want to remain hip? When was the last time you or Gates jumped down the side of a building and injured yerselfs??
I would love to see you guys do an overview post on microlending to entrepreneurs in 3rd world countries. Are there any other sites that have the same focus as kiva?
Once again, America… you’re welcome.
Virgin is always trying to do the right thing for our customers. The services you want, the customer service you deserve, and a hip brand, too.
Fake Steve… they didn’t come to you because you do SOFTWARE, not banking. Virgin does it all! (We’ve talked about this before…)
Warm regards,
Sir Dick
This is a very interesting move; whilst over here in the UK Mr Branson looks to expand his financial portfolio by taking over a troubled (traditional) mortgage provider, over there he’s being a lot more adventurous. I wonder whether this is a sign of things to come back here…
These companies are very interesting and I wonder how and when this could be regulated. It blurs the line between banking and investments and seems to give more power to the people. As a potential lender I would be a little worried about my return and risk.
If anyone has used this/similar services care to comment on their experience?
I have used Prosper and it worked out well for me as a borrower. I needed a bridge loan to cover expenses I was incurring while recovering from congestive heart failure. I then tried lending money as a “pay-it-forward” deal, but it seems very risky because the return on my loans are not very good. I am now in the process of trying to create a similar style of lending by using commodities and assets like gold and etc. I am a Pawnbroker by trade and I am trying to figure out how to bring this type of lending to the web. Something like Prosper, Zopa, Lending Club, etc., but using collateral as security. It is a win-win situation in the offline environment. I think it could also be the same online. If anyone thinks this is a good idea, visit my website and send me some feedback.
@9 My website is http://www.auctionbuyback.com. Thanks!
@9 Sipboy
Keep me abreast of your developments. I think your idea has legs. Put me on your email list
sm1224 a gmail