Prosper Funding LLC, one of its subsidiaries, operates Prosper.com, a website where individuals can request to borrow money, open a credit card, or invest in personal loans.

Prosper acted as an eBay-style online auction marketplace, with lenders and borrowers ultimately determining loan rates using a Dutch auction-like system.

Prosper's 10.69% annualized seasoned rate of return, net of fees, for the period of July 1, 2009 through September 30, 2011 was independently audited[7] by Ashland Partners & Company LLP in December 2011.

The app is designed to give consumers tools to make financial decisions, including viewing all their financial accounts in one place, budgeting and tracking spending by category, identifying questionable charges, and monitoring their free credit score, which is updated monthly.

[9] Prosper opened to the public on February 5, 2006, and was founded by Chris Larsen (the founder of E-loan) and John Witchel.

Prosper has provided an increasing amount of information about prospective borrowers over time, while also making various changes to its credit policy.

Prosper has a transaction-based business model, in which the company collects revenue by taking a fee on its customers' transactions.

As borrowers repay over the three, or five-year fixed term of their Prosper loan, payments are distributed to investors' accounts.

However, Prosper declared in its prospective dated December 21, 2016, that its relationship with Folio Investing had terminated on October 31, 2016.

In July 2009, Prosper reopened their website for lending ("investing") and borrowing after having obtained SEC registration for its loans ("notes").

[20] In December 2015, the FBI reported that Syed Rizwan Farook, one of the shooters in the 2015 San Bernardino attack, had borrowed $28,500 from Prosper to finance the purchase of weapons and explosives.

This was investigated by the FBI, the House Financial Services Committee, and the California Department of Business Oversight.

[6] Prosper reports a 10.69% annualized seasoned rate of return, net of fees, for all loans issued from its re-opening after SEC registration (July 1, 2009) to the 30th of September, 2011.

The charge-off rates in many cases exceeded the interest received on the loan categories, resulting in a negative return.

[23] As of Aug 11, 2010, the 4 months that match these criteria are the lowest percentage of late payments Prosper has seen since inception.

According to Prosper's SEC filing, the company raised $17.15 million by selling additional shares at an average of approximately $0.738/share.

Series E investors included Draper Fisher Jurvetson, Crosslink Capital, Accel Partners, Agilus Ventures and TomorrowVentures.

[31] In 2017, Prosper raised US$50 million in a Series G round, led by FinEX Asia's private equity division.