Startup offers alternative to the traditional banking loans and investment model

LendingClub, a peer-to-peer lending network, announced on Wednesday it's raised a hefty $24.5 million round of funding.  Foundation Capital led the round.  Existing investors including Morgenthaler Ventures, Norwest Venture Partners and Canaan Partners also joined the round.  This brings the startup's total funding to $52.7 million.So what are these investors betting on exactly?  LendingClub is a site and service that offers an alternative to the traditional banking loans and investment model.  On LendingClub, users can choose whether they want to invest or get a loan from another user.  The company claims to eliminate the high cost and complexity of traditional bank lending to offer borrowers better rates and investors better returns.  This is all made possible by cutting out banks ... [Read more]