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For each of the excitement centered around fintech during the last half-decade, most venture-backed fintech companies battle to acclimate to public markets. LendingClub and OnDeck have plummeted since their late 2014 IPOs after a very extensive period of darling status within the private markets. GreenSky, which went public in May of the year, may be unable to go back to its IPO price. Square may be the exception towards the rule. One of these companies is LendingTree, which takes a start height in the Internet bubble, going public in mid-February of 2000, only a month prior to Dot-com bubble peaked.



LendingTree began in 1996 inside a founding story that epitomizes early Internet era. Doug Lebda, an accountant los angeles searching for homes in Pittsburgh, were forced to manually compare mortgage offers from each bank. So he designed a marketplace for loans within the same way OpenTable makes it possible to find your restaurant of or Zillow simplifies the house buying process.



The marketplace business model is the darling that's driven returns for many in the leading VCs like Benchmark, a16z, and Greylock. Network effects can be a non-negotiable part from the explanation that explain why. LendingTree is normally left off on this list, yet, the company sits inside a compelling space as consumers and lenders keep manage their financial lives online. The lending process may be defined by significant information asymmetry between borrowers and lenders.







Lenders use a disproportionate number of leverage inside the relationship. And that’s not to imply it should be different - it’s perfectly logical to require a borrower to prove their creditworthiness. However, aggregation, synthesis, and recommendations modernize a dated dynamic. Ironically, at a time where rrndividuals are inundated with information, lower than 50% of interested borrower’s purchase loans.