Alternative lending startup Prosper raised new funding in a Series G last week, with the $50 million round bringing its equity funding.
However, the new capital — driven by Hong Kong-based FinEx ASIA and LPG Capital — brought the company’s valuation to $550 million, a sharp step down from the P2P lender’s previous valuation.
Prior to this, the last valuation investors gave Prosper was in the unicorn range (which was $1.9 billion, meaning at its current worth of $550 million, the startup has lost 70% of that value).
The $50 million round was also less equity than Prosper had previously raised in past 2014, 2015 rounds.
Prosper’s reduced valuation and funding goals seem to reflect the current atmosphere for alternative lenders; investment in the segment has been labored since the troubles of Lending Club were first reported in the last year.