This Week in Startups E987: The Next Unicorns: Upgrade CEO & Co-founder Renaud Laplanche is empowering users to better understand credit through his consumer credit platform, announces the Upgrade Card, shares insights on taking LendingClub public & how startups have changed since he started his first company in 2000 – E
Oct 12, 2019
Renaud Laplanche, CEO and co-founder of Upgrade, previously founded LendingClub and is now revolutionizing consumer credit. He shares insights on the transition from LendingClub to Upgrade and critiques outdated credit scoring methods. The innovative Upgrade Card aims for responsible credit use. Renaud discusses the evolution of startups since 2000 and reflects on the lending landscape's challenges. He also explores the role of cryptocurrencies and emphasizes the importance of transparency in consumer finance.
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LendingClub's Origin
- Renaud Laplanche's LendingClub idea originated from noticing the large interest rate spread between his credit card and savings account.
- Both accounts were held at the same bank, sparking his curiosity about the costs of traditional banking.
LendingClub's Disruption
- LendingClub aimed to disrupt traditional banking by connecting borrowers and lenders directly online.
- This peer-to-peer lending model aimed to reduce costs associated with physical branches and numerous employees.
LendingClub IPO and Resignation
- Renaud Laplanche took LendingClub public in 2014 but resigned in 2016 due to compliance issues and disagreements.
- This experience was frustrating and disappointing for him, demonstrating the emotional challenges founders face.