Proprietary & Confidential – Prosper Marketplace, Inc. © 2009 October 23, 2009

Proprietary & Confidential – Prosper Marketplace, Inc. © What is Peer to Peer Lending Proprietary & Confidential – Prosper Marketplace, Inc. ©  P2P lending is a fundamentally disruptive shift in financial services that capitalizes on current broken lending & regulatory models  Prosper has built the leading P2P lending marketplace  Individuals and institutions with money bid on fractional pieces of loans to individuals and small businesses  Borrowers gain a new way to access credit and build richer credit histories  Lenders gain a new asset class that’s transparent and diversified, as well as simple and engaging

Proprietary & Confidential – Prosper Marketplace, Inc. © Proprietary & Confidential – Prosper Marketplace, Inc. © Proprietary & Confidential – Prosper Marketplace, Inc. © Prosper is the Market Leader in P2P Lending  Pioneered Peer-to-Peer lending in 2004  840,000 members  $180 million in funded loans  Approximately 6,000 loans to small business owners P2P Market Total

Proprietary & Confidential – Prosper Marketplace, Inc. © How it Works: Borrower Makes a Loan Listing Borrower sets max rate Prosper provides credit data and risk rating

Proprietary & Confidential – Prosper Marketplace, Inc. © How it Works: People Bid on Loans Online auction Bid Tools Online auction Bid Tools

Proprietary & Confidential – Prosper Marketplace, Inc. © How it Works: Borrowers are Funded by Multiple Bidders Fractional interests ease diversification

Proprietary & Confidential – Prosper Marketplace, Inc. © How it Works: Bids from “Friends” Help Borrower and Investor...and provide social pressure that lowers risk Friends can help borrower get funded

Proprietary & Confidential – Prosper Marketplace, Inc. © Why Prosper Has Better Rates A Broader Range of Data can be Leveraged on Prosper Traditional Financial Data Credit bureau, income data Social Graph Friends, family, causes (e.g. green businesses) Empowered Stakeholders Vendors, customers can now be your lenders Individual Loan Level Pricing

Proprietary & Confidential – Prosper Marketplace, Inc. © Benefits of Borrowing on Prosper  Simple & Fair Loan Terms  Fixed interest rate that will not change  No hidden fees  No Prepayment Penalty  Attractive Interest Rates  Maximum acceptable rate set by the borrower  Rates can be bid down by auction  Borrower can pass on loan if pricing is unacceptable  Borrowers can leverage repayment history  Borrowers with good repayment histories can list for additional loans  Positive repayment history often leads to lower rates Proprietary & Confidential – Prosper Marketplace, Inc. ©

Proprietary & Confidential – Prosper Marketplace, Inc. © A Small Business Success Story  Lara Miller was a fashion designer looking to start a business designing and manufacturing a line of dresses  Lara was unable to secure a bank loan at any rate, and turned to Prosper in August of 2006  To date Lara has taken three Prosper loans totaling $23,000 at an average rate of 11.1%  The original loan for $3,000 gave her enough to get started and the additional 2 loans have allowed her to grow her business as demand for her designs have grown