"We have a long history of helping develop large online networks," said Fred Wilson, managing partner, Union Square Ventures. "We believe Lending Club will surpass the largest US banks in the next decade both in size and performance because it leverages the power of the network to grow faster, get smarter and become increasingly more efficient over time."

Other investments from Union Square Ventures include Twitter, Foursquare and Zynga.

"We are thrilled to welcome Union Square Ventures as an equity partner," said Lending Club CEO Renaud Laplanche. "While we did not need additional funding, we could not pass up the opportunity to work closely with the USV team and their network of companies. USV will be instrumental in continuing to accelerate Lending Club's growth and in leveraging our technology platform and network effect to simultaneously reduce the cost of credit to borrowers and enhance investors' returns."

Lending Club brings together investors and creditworthy borrowers, utilizing technology to reduce the cost and complexity of traditional lending in order to provide borrowers with better rates and investors with better returns. Focusing on prime and super-prime quality borrowers enables Lending Club's investment platform to generate over a 9.5 percent Net Annualized Return, while offering consumers an APR well below traditional alternatives for similar borrowers.*

Lending Club recently surpassed $325 million in total loan originations and is now issuing over $20 million in prime consumer loans each month.