MARKETPLACE

EVOLUTION, CHALLENGES & OPPORTUNITES

LENDING

Ron Suber

CAYMAN ISLANDS

MIAMI

NEW YORKCHICAGOSAN FRANCISCO

LOS ANGELES

UK

ITALY

ISRAELINDIA

CHINA

ONE LAST THING…

Marketplace Lending Internet Finance Modern Finance

Online Market for Credit Balance Sheet Lending

Inclusive Lending Finternet

Digital Lending

What Are We?

FINTECHA finance company that uses technology to offer

products and services beyond loans that help people achieve financial well-being.

MARKETPLACE LENDERS

Platforms that connects creditworthy borrowers to investors who want solid returns.

What Are We?

Key Components

People Growth Companies

Data Analytics

Marketing Expertise

Capital Markets

Great Underwriting

We can permanently shift how people interact with their personal finances on a day-to-day basis.

9

Marketplace Lenders S&P 500 All U.S Stocks

International Bonds Corporate Bonds High Yield Corporate Bonds

+5.97% +1.13% -.27%

+7.44% +1.13% -4.79%

*12-month performance as of July 6, 2016

1 Year Performance*

We can provide investors with a core product that remains attractive.

Our Common Goals Unchanged• Change how people invest, borrow and pay

• Provide convenient, cost-efficient access to capital

• Provide investors simple and direct access to assets

with attractive risk-adjusted yields

Challenges Largely Unchanged

• Economic Downturn

• Unemployment

• Rising Interest Rates

• Information Security

• Platform Failure

How Did We Do?

Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016

• Growth • Originations Per Month • Equity Capital Funding • Race to Unicorn

Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016

• Marketplace Lenders & Banks • CPA / Conversion • Product Expansion

Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016

• Focus on Profitability • Decline in Public Valuations • Platforms Fail

Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016

• Funding Pressure • Rates Increase • Spreads Widen • Press Skepticism

Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016

• Platforms Raised Rates • Market Volatility (Bond & Stock) • Platforms Scale Back

Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016

Month Over Month 3-Month Return

12-Month Return

+.739% +1.19%

+5.97%2011 2012 2013 2014 2015 2016

1400

1350

1300

1250

1200

1150

1100

1050

1000

Orchard Consumer Marketplace Lending Index*

*12-month performance as of July 6, 2016

Asset Performance

What’s one thing that’s more clear now than a year ago?

“Underwriting is still the most important.”

“We are a fixed income asset-

class.”

“Business is about trust and transparency.”

“China and Europe are big!”

“There is a need for permanent

capital.”“There are more opportunities to work together.”

It’s not just about origination growth. It’s about: building companies that last and maintaining equilibrium.

FOUR FUNDAMENTALS

FOUR FUNDAMENTALS

Performance Through Cycles

In Every Fixed Income Portfolio

Trusted Global Brands

Build the Ecosystem

Continue to focus on pricing, credit, risk, underwriting and collections

New doors and windowsTrust and transparencyEncourage data visualization and 3rd party validation

ONE LAST THING…

GLOBAL OPPORTUNITY

ONE LAST THING…

Understanding

Communication

Investment

Cooperation

Access

Engagement

Distribution

Respect

Disclosures

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This presentation includes forward-looking statements. Forward-looking statements inherently involve many risks and uncertainties that could cause actual results to differ materially from those projected in these statements. Where, in any forward-looking statement, we express an expectation or belief as to future results or events, such expectation or belief is based on the current plans and expectations of our management and is expressed in good faith and believed to have a reasonable basis, but there can be no assurance that the expectation or belief will result or be achieved or accomplished. All forward-looking statements speak only as of the date of this presentation and are expressly qualified in their entirety by the cautionary statements above. We undertake no obligation to update or revise forward-looking statements that may be made in this presentation to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events.

All personal loans are made by WebBank, a Member of FDIC. All personal loans through Prosper are unsecured, fully amortized personal loans. Neither Prosper Funding LLC nor Prosper Marketplace, Inc. are registered as an investment adviser with any federal or state regulatory agency. The information contained in this presentation is for informational purposes, and should not be construed as individually tailored investment advice or as a recommendation with respect to any security or investment approach. This presentation has been prepared without regard to the circumstances and objectives of its participants and should not be relied upon as authoritative or taken in substitution for the exercise of judgment by any individual. Each individual should consider the appropriateness of any investment decision having regard to his or her own circumstances, the full range of information available and appropriate professional advice. Prosper Funding LLC and Prosper Marketplace, Inc. recommend that each individual seek independent investment and financial advice concerning any services or investments discussed in this presentation.

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