This post kind of struck me as odd “Lending Network Prosper Raises $20 Million“. I just found it a bit oxymoronic that a company who is in the business of lending money (OK, not actually their own money, but they facilitate the lending of funds) would actually be raising funding for themselves. Maybe it is just me, but it seemed a little funny.

In all fairness, Prosper has done quite well for themselves, and this is actually their third round of financing. I have taken some time to use the site, and find their offering to be compelling. They do offer a way for the average person who needs to borrow a bit of money to pay off student loans, credit card debt or even buy a car can set up a profile and investors can basically bid on different loans to make and can set their own interest rates.

It seems as if some people have found a way to leverage the site in a way that perhaps the folks at Prosper had not intended it to be used for. Some people are using Propser as a way to diversify their investment portfolios, basically lending money to individuals while usually getting a 10-15% ROI on their investment. This sure beats some traditional investment methods (CDs or money markets) that produce a much lower ROI.

Nonetheless, it seems that Prosper has come up with something that is both compelling to the investor and the borrower. I guess I am just feeling a little giddy today and found humor in the title of the post. Perhaps my mind is not what it used to be now that I am a year older .