FWP
Free Writing Prospectus
Filed pursuant to Rule 433
Registration Statement No. 333-151827
Dated May 13, 2011
LendingClub Corporation
Free Writing Prospectus Published or Distributed by Media
The article attached as Exhibit A appeared in USA Today on May 9, 2011.
The article was not prepared by or reviewed by LendingClub Corporation (Company) prior to
publication. The publisher of the article is not affiliated with the Company. The Company made no
payment and gave no consideration to the publisher in connection with the publication of the
article or any other articles published by the publisher concerning the Company.
Statements in the articles attached that are not attributed directly to Mr. Laplanche or based
on, or derived from, the Companys public filings with the SEC represent the authors or others
opinions, and are not endorsed or adopted by the Company.
You should consider statements in this article only after carefully evaluating all of the
information in the Companys prospectus for the Member Payment Dependent Notes, as filed with the
SEC and as supplemented from time to time. In particular, you should carefully read the risk
factors described in the prospectus and the Prospectus Supplements (Disclosure Reports), all of
which are available on our website at www.lendingclub.com.
Forward-Looking Statements
Some of the statements in this article are forward-looking statements. The words
anticipate, believe, estimate, expect, intend, may, plan, predict, project,
will, would and similar expressions may identify forward-looking statements, although not all
forward-looking statements contain these identifying words. These forward-looking statements may
include, among other things, statements about the status of borrower members, the ability of
borrower members to repay member loans and the plans of borrower members; expected rates of return
and interest rates; the attractiveness of the Companys lending platform; the Companys financial
performance; the availability and functionality of the trading platform; the Companys ability to
retain and hire necessary employees and appropriately staff its operations; regulatory
developments; intellectual property; and estimates regarding expenses, future revenue, capital
requirements and needs for additional financing. The Company may not actually achieve the plans,
intentions or expectations disclosed in forward-looking statements, and you should not place undue
reliance on forward-looking statements. Actual results or events could differ materially from the
plans, intentions and expectations disclosed in forward-looking statements. The Company has
included important factors in the cautionary statements included in the prospectus, particularly in
the Risk Factors section, that could cause actual results or events to differ materially from
forward-looking statements. The Company does not assume any obligation to update any
forward-looking statements, whether as a result of new information, future events or otherwise,
except as required by law.
The issuer has filed a registration statement (including a prospectus) with the SEC for the
offering to which this communication relates. Before you invest, you should read the prospectus in
that registration statement and other documents the issuer has filed with the SEC for more complete
information about the issuer and this offering. You may get these documents for free by visiting
EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer has made the prospectus
available for free on its website, www.lendingclub.com.
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EXHIBIT A
Crowdfunding and peer-to-peer lending help small businesses
By Laura Petrecca
USA Today
May 9, 2011
The barista had tenacity, passion and a robust interest in all things caffeinated. But she lacked
one necessary element to launch her own coffee business: cash.
She didnt have the savings, nor the collateral for a loan.
I didnt know where to start, she says. I didnt have a house. I didnt have a car. It was so
overwhelming.
She sought help from the Small Business Administration, which put forth an unusual solution: Get
the coffee money from a beer man.
Her adviser suggested she look into the Samuel Adams Brewing the American Dream program, which
provides microloans to food-, beverage- and hospitality-related entrepreneurs. Valena did, and
received $4,000.
The loan funded espresso catering service Voltage Coffee, which allowed me to meet people and make a name for the company, she says.
As that business grew, she secured $150,000 in venture capital. Last November, Valena had a
coffeehouse to call her own: Voltage Coffee & Art opened in Cambridge, Mass.
Capital is critical to launching and growing a small business. Yet, getting a bank loan can be a
frustrating and often fruitless process.
As credit became more difficult to obtain during the downturn, many entrepreneurs tapped into
alternative financing such as microloans, peer-to-peer lending and crowdfunding. Banks have since
eased lending terms, but business owners are still exploring non-traditional financing.
With some research, entrepreneurs can find unexpected loan providers, business grants, online lists
of angel investors and business plan competitions that dole out cash prizes.
A whole bunch of options have opened up, says Paul Kedrosky, a senior fellow at Ewing Marion
Kauffman Foundation, where he focuses on entrepreneurship, innovation and capital markets. People
have gotten much more comfortable with providing and receiving capital in new ways.
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Cash without the banks
In the peer-to-peer and crowdfunding areas, lenders and borrowers never have to meet face-to-face.
Transactions are done online.
Peer-to-peer sites connect individual borrowers with lenders and take a fee for the service.
Lending Club, for instance, takes a 2% to 5% cut for providing the services of screening borrowers
and issuing the loans.
Lending Club borrowers apply online through a free application process. They supply financial
information, background details and explain why the funds are needed (i.e., to start a business or
pay off credit card debt).
Most applicants dont get their loans funded 26,740 loans have been accepted, and 267,194 have
been declined but those who do get the money quickly. Usually, cash is deposited in the
borrowers bank account within 10 days of an applications acceptance.
Crowdfunding sites usually pool a large number of small loans or donations. The sites vary, but one
of the most known, Kickstarter.com, posts details on creative projects that range from producing a
movie to opening a vegan restaurant.
Backers dont get their money back or interest. Instead they receive a reward such as a DVD of
the movie produced.
We shy away from the word donation, says Kickstarter co-founder Yancey Strickler. In a sense,
this is commerce. You get something in return.
Kickstarter has an all-or-nothing approach. If a money-seeker doesnt meet his or her stated
fundraising goal, no funding is given and backers arent charged.
Its a good way to know if the idea has value or not, Strickler says. He adds that its also
hard to complete a project on an incomplete budget.
Some folks back a project because they know the money-seeker or run in the same circles as that
person. Others want to get involved with cool initiatives.
And there are also those who feel an affinity for the project after reading the back story online.
Backers get that warm and fuzzy feeling when supporting someones dreams, Strickler says.
About 43% of Kickstarter initiatives are successfully funded. The firm takes a 5% cut from
successful projects and uses Amazon Payments to funnel the rest to the cash-seekers bank account.
In the two years since Kickstarters launch, close to 592,000 people have helped to back more than
7,500 successful projects.
Another popular site, Kiva.com, has aspects of crowdfunding and microlending. Lenders select a
project that interests them and contribute funds in $25 increments. The money is combined to
finance loan
requests. Lenders dont receive interest, but they can get their original pledge money back,
resubmit it for another loan or donate it to Kivas operational expenses.
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Non-profit Kiva, which distributes loans through regional microfinance institutions, has raised
$211 million for worldwide projects. Nearly 550,000 entrepreneurs have received loans. The
repayment rate is 99%.
Unconventional popularity
Many of these services were around before the downturn, but the recession super-fueled their
growth, says Steve Strauss, author of the soon-to-be-published book Get Your Business Funded:
Creative Methods for Getting the Money You Need.
During tough economic times, cash-strapped entrepreneurs were willing to experiment with
unconventional financing, he says. They sought out microloan providers, business plan competitions
and crowdfunding sites.
As demand for capital rose, so did the financing options. Necessity is the mother of invention,
Strauss says. People needed money, so new ideas came out.
Kiva, for instance, expanded its international-only microloan program to the U.S. in mid-2009 to
help small businesses that had trouble getting bank loans.
The year prior, Jim Koch launched the Sam Adams microloan program in partnership with
not-for-profit microlending group Accion USA. It funds entrepreneurs who show potential, but may
not have the collateral or credit scores to get a bank loan.
Luiz de Lima is among the five dozen entrepreneurs who have benefited from the program. He used a
$5,000 microloan to launch a hot dog business that serves Brazilian-themed frankfurters in the
Amesbury beach area of Massachusetts.
The Web makes it possible
The digital revolution has made it easier to explore and secure alternative financing.
Lenders have gotten comfortable with using Amazon Payments, PayPal and other accounts to transfer
money online. And, as overall use of the Web rises, so does the ability for entrepreneurs to plead
their case to potential backers.
Scott Wilsons Kickstarter posting said that he wanted to raise $15,000 in 30 days to produce
watchbands that securely hold an iPod Nano. Wilsons design enables the Apple device to become the
watch face.
He described his watch kits and offered tiered rewards. Those who pledged $25 would get a basic
watch kit, and those that pledged more would receive even more bounty, such as kits with the Nano
included.
Thirty days after the posting, more than 13,000 backers pledged $941,718.
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Theres also the convenience that goes into online borrowing: Small-business owners dont have to
go to a bank for a loan. They can put out feelers from the comfort of their homes.
We do everything in a digital way: You can apply online at 2 in the morning if you cant sleep,
says Lending Club CEO Renaud Laplanche. Were open 24/7. You can do it from any place you are
comfortable in.
Be on the lookout
The plethora of financing options means more fundraising opportunities. But it also brings about a
larger chance of getting burned by high interest rates, hidden service fees and other unexpected
costs.
Some are riskier than others, and some have a higher cost of capital than others, says Andrew
Sherman, a partner at law firm Jones Day and a specialist in business financing. Its not just
what capital is available; its what capital is available at what cost.
He suggests that borrowers run financing details past professional counsel, such as an accountant
or lawyer, to make sure the deal makes sense and doesnt violate Securities and Exchange Commission
rules.
Borrowers should also keep an eye out for scam artists.
Any time you have small-business owners desperate for capital there are going to be people with
high moral ethics and integrity and there are going to be bottom feeders, Sherman says.
Be wary of unsolicited loan offers that come via the phone or e-mail, small-business experts say.
Borrowers should also review any potential lenders references, and be sure to get details on who
the money was raised for, and at what terms.
And while there are more financing options out there, that doesnt mean a business owner should
partake in any, Sherman says.
Many small-business owners think they need capital, and they really dont, he says.
Instead, they should think more creatively and consider bootstrapping options, such as bartering
for goods or pooling resources with other businesses.
Sure, go out there and test the capital markets, but also think outside the box, Sherman says.
Look at all your options: Some may include not raising capital at all.
Websites such as StartupAmericaPartnership.org and the recently revamped SBA.gov have information
on how to get free and discounted services. Small-business advisers, such as a local Chamber of
Commerce or Small Business Development Center, can also provide guidance.
Small-business owners often get focused on the end, not necessarily the means, Sherman says.
Most will assume that the means is raising capital and it may be but not always.
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