Peerform
| Company type | Private |
|---|---|
| Industry | Financial services, Peer-to-peer lending |
| Founded | 2010 |
| Founder | Mikael Rapaport, Meytal Benichou, Elie Galam |
| Headquarters | New York City , United States |
Key people | Gregg Schoenberg (Executive Chairman), Abigael Saal (CTO), Catheryn Robinson (Business Development), Ari Afilalo (General Counsel), Fred Smajda (Chief Risk Officer) |
| Products | Peer-to-peer lending platform, personal loans |
Peerform is a New York City-based peer-to-peer lending platform that facilitates connections between prime and near-prime borrowers across the United States and accredited high net worth individuals as well as institutional investors through its digital marketplace. Its proprietary loan qualification system assesses a variety of criteria, including FICO scores. In January 2011, Peerform obtained $1.3 million in angel investment, followed by a $1.1 million seed funding round in 2014 led by Corporest Development, a European investment firm.
History
Established in 2010 by Mikael Rapaport, Meytal Benichou, and Elie Galam, Peerform expanded its operations in April 2014 by partnering with institutional lenders to finance whole loans on its platform at fixed interest rates determined by its unique algorithm. The company has been identified by Time (magazine) as one of the "three principal U.S. players" within the peer-to-peer lending sector.
Business Model
Peerform functions as an online marketplace for personal loans, linking borrowers with investors. It provides investors exposure to the rapidly expanding U.S. personal loan market, which experienced an annual growth rate of 176.6% from 2008 through 2013. Lending is limited to accredited investors compliant with SEC Regulation D Rule 506(c) or institutional entities. Borrower eligibility includes prime and near-prime individuals with credit scores starting at 600. Loans feature fixed APRs and interest rates, repaid over a three-year term via automated bank withdrawals.
Investors have the option to finance entire loans or invest in fractional portions. A "whole loan" denotes funding from a single investor to one borrower, whereas "fractional loans" are divided among several investors. Loan amounts now range from $1,000 up to $25,000, increased from the previous cap of $15,000.
Peerform Loan Analyzer
The platform’s proprietary Loan Analyzer evaluates borrower qualifications using more than just FICO scores; it incorporates additional data points such as debt-to-income ratio and recent credit inquiries. This data-driven methodology aims to enhance credit risk assessment accuracy and set appropriate APRs for borrowers.
Board of Directors and Management
In addition to founders Rapaport and Benichou, Gregg Schoenberg joined Peerform's Board of Directors in April 2012 and serves as Executive Chairman. The leadership team includes Abigael Saal as CTO, Catheryn Robinson heading Business Development, and Ari Afilalo as General Counsel. Charles-David Ohayon became a board member in April 2014, while Fred Smajda was recently appointed Chief Risk Officer.