Prosper gives people the opportunity to take back the marketplace for consumer credit. By providing the platform and tools for an efficient marketplace created by and for people, Prosper aims to make consumer lending more financially and socially rewarding for everyone.

You never know. After Bell Atlantic, I would have said it's all over but the crying.

Some people would say we're being overly-conservative. But I say we're being realistic for our first year planning.

No-cost loans are pretty popular right now, especially for people with larger loans. The larger your loan, the smaller the penalty for no-cost loans.

Until now, financial institutions have controlled who is able to obtain credit and the rates people pay. Over time, this one-sided control has bred inefficiencies and excessive margins -- leading to higher rates for borrowers, and restricting people who have money to lend from entering and generating income from this vital and lucrative market.

With the Internet world, we can have people make both sides of the (lending) market, bringing more transparency and efficiency. It can be both more capitalistically efficient and socially beneficial.

There are likely to be people who bid on certain loans because they want to support people they care about and can relate to. For example, a successful entrepreneur may remember the trials and tribulations of getting a loan to start her first business, and be instantly drawn to borrowers who are budding entrepreneurs.

That's just a huge spread. We think if you allow people to participate directly, it's a more efficient marketplace. People can make a better return on their deposits, which then become the source of credit to others.