Editor’s note: Charles Moldow is a general partner at Foundation Capital and an investor in Lending Club, Motif Investing, AdRoll, DogVacay, Lending Home and OnDeck.
Remember the hidden cash craze this summer? Someone was hiding money all over cities, leaving people to find it on their own. It got a lot of attention early on and got me thinking that there is a lot more out there than random $50 bills and whatnot. As an investor, we look for huge markets that either have remained hidden or are just starting to be explored. Financial marketplaces is one of these.
The first efforts in this space were called peer-to-peer (P2P) lending, and rightly so. It was literally individuals posting descriptions of things they needed loans for (a new deck, cosmetic surgery) and other individuals offering to loan them the money for those things, at various rates. With no banks involved, it…
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