Sign up to receive 5 free days of our daily summary for tech news.

Venture Capital

Public Markets Cool on Online Lenders

Lending Club’s successful IPO last December was supposed to be the breakout moment for the fast-growing online lending sector. Instead the period since the debut has turned into a lull that highlights how these businesses are more closely tied to macroeconomic activity than other rising tech companies. And it suggests that those investors who thought the company and its ilk heralded a seismic disruption of banking are realizing it may not come as quickly and cleanly as it once seemed.

After a big rally in its first week of trading, Lending Club’s stock fell into a slump that infected another online lender that went public shortly after, OnDeck Capital. A third company in the space, Stockholm-based TrustBuddy, has also spiraled downward. The trio fell between 20 to 30 percent since mid-December.

What Is The Information?

Notes bb3aa5069205d702dda37fc71dc6f1c59df2310c4379304e9f1199f052af4884

Exclusive Articles

We broke it first. Receive original reporting you won't read anywhere else from the largest newsroom in tech.

Notebook b5103017ee163370a1667c9ce59ab0ef023875a17888105d26c185cadf31bb69

Daily news analysis

Every weeknight, we'll send you our reporters’ views on the day’s top tech news—distilled into one email.

Conference calls c9e664e8b96ee347d3e92b8309938f268422b9db98cfabca5c826fbb75054b23

Conference calls

Get access to our reporters and other top executives with monthly deep-dive calls into topics like startups and autonomous vehicles.

Events 499acedd16cffc41445edd76bfd302b2836c2a27419890f17130a6b10e2aa3df

Special Events

For no extra fee, get access to more than a dozen events yearly, from intimate dinners to larger gatherings with marquee speakers.

What else is included in my subscription?

Become a contributor

Share your views and find other subscribers by completing your profile. You’ll be listed in our contributor directory.

Slack community

Discuss topics and current events with our subscriber-only Slack group and share news about your company with other subscribers.

Annual Subscriber only benefits:

Org Charts

Access the only collection of tech company org charts. Our expanding database includes companies like Amazon, Snap, and Uber.

Crypto Newsletter

Our experts investigate the latest in the crypto world to keep you in-the-know about the movements of digital currencies.

Stay up to date on Silicon Valley

Sign up for Jessica Lessin’s (The Information’s CEO & Founder) free Saturday newsletter and also receive a complimentary week of our daily afternoon tech commentary email.

Already a subscriber? Log in here

Recent Articles

Startups Travel

Airbnb Mulls Big Investment in Indian Hotel Startup

By Cory Weinberg

Uber/Lyft Markets

Uber’s Biggest IPO Winners

By Amir Efrati

Venture Capital Startups

Robinhood Nears Funding at Valuation Over $7 Billion

By Zoë Bernard

Uber/Lyft Markets Policy

Uber CEO Shielded From Stock Drop by Options Repricing

By Alfred Lee and Amir Efrati

The regulatory overlay, the credit cycle overlay, the exposure to macroeconomic risk adds enough to these companies to make them far trickier than Airbnb.