industry spotlight

P2P Lending

Tap into the P2P lending industry, where technology disrupts traditional finance, changing how money flows.

Building the future of lending

The P2P lending industry is developing by leaps and bounds due to easier access to online platforms and the increasing demand for alternative financing options. This attracts a growing pool of investors seeking higher returns than those offered by traditional savings accounts.

Why it matters:

With a strategic approach, startups can leverage numerous opportunities to enter the market:

  • Blockchain
  • Fintech partnerships
  • AI portfolio management tools
  • Regional P2P platforms

Between the lines:

Beyond P2P lending investment issues, startups must address regulatory, security, and technology challenges.

With vast experience helping P2P lending startups, our Waveup expert team knows what makes companies succeed and shine for investors

Secured in funds
Ventures advanced
Industries explored

What we do:

We assist in securing the necessary venture capital, creating persuasive and insightful P2P lending pitch decks and solid business models, and pinpointing the most beneficial M&A opportunities.

Go deeper:

Look through our P2P lending market research to discover the latest trends, key industry insights and challenges, and the cheat codes to attract investment.

10x growth
The global P2P lending market is set to rise ten times by 2032.


Real estate and financing P2P lending platforms operate globally

Driven by the demand for alternative financing and the efficiency of online platforms

P2P lenders are repeat investors.


Americans use P2P services at least once a month.


P2P lending volume comes from retail investors.


Investments in P2P lending startups totaled $$23M in 2023

With the major investments flowing to:

  • Real estate P2P lending
  • Agriculture and renewable energy
  • Fintech startups
  • Franchise financing

Leading P2P lending venture capital firms

Write to us to know more

P2P lending startup challenges

We’ve covered key startup pitfalls with best practices to solve them.

Limited financing:

Insufficient funding restricts the platform’s ability to attract borrowers and lenders. This can create a catch-22 situation where the platform needs more capital to grow but struggles to attract investors without a proven track record.

Why it matters:

Lack of funding means:

  • Limited investor base
  • Slower platform growth
  • Reduced liquidity
  • Limited scalability

What it takes:

  • Craft a winning GTM strategy with a clear path to market adoption and revenue generation
  • Develop a strong business plan to demonstrate a path to profitability with realistic projections
  • Build a strong team and advisory board with industry veterans who can provide valuable guidance and connections

Fraudulent activity:

P2P platforms are susceptible to fraudulent activities from borrowers and lenders. Borrowers may create fake profiles to obtain loans, while lenders might engage in money laundering schemes.

Why it matters:

Fraudulent activity leads to:

  • Weak investor confidence
  • Limited resources for verification
  • Data security concerns
  • Reputational damage
  • Stricter regulations and compliance

What it takes:

  • Invest in robust data security infrastructure, including firewalls, data encryption, and regular security audits. This helps safeguard borrower information and deter cyberattacks
  • Implement educational initiatives to inform borrowers about fraudulent schemes and best practices for protecting their information
  • Implement KYC/AML compliance procedures to verify user identities and prevent illegal activities

Limited liquidity:

Unlike traditional banks, P2P platforms don’t hold a pool of readily available funds. Investors may find it difficult to sell their loans on the secondary market quickly, especially if there’s a lack of interested buyers.

Why it matters:

No liquidity means:

  • Increased operational costs
  • Hindered growth
  • Potential regulatory scrutiny
  • Limited IPO

What it takes:

  • Offer liquidity incentives to lenders who lock in their investments for a specific period to improve cash flow and platform liquidity
  • Optimize loan portfolio management by diversifying loan types, risk profiles, and durations
  • Maintain transparency and communication to foster trust and mitigate investor concerns during potential liquidity strains

Regulatory uncertainty:

The P2P lending industry is relatively new, and regulations are still evolving. Keeping up with compliance requirements across different jurisdictions can be complex and expensive.

Why it matters:

Difficulties with regulations lead to:

  • Hefty fines
  • Platform shutdowns
  • Reputational damage

What it takes:

  • Partner with legal counsel specializing in fintech regulations to ensure compliance and anticipate potential challenges
  • Focus on building a compliant business model to demonstrate a commitment to responsible lending and build trust with regulators
  • Leverage data and transparency to demonstrate the positive impact of P2P lending on borrowers and the broader economy
  • Invest in compliance automation to streamline the process and minimize errors


What is P2P lending?

P2P lending is an online system where borrowers get loans directly from investors instead of banks. Borrowers post their loan needs, and investors can fund loans they like, often getting better rates and returns.

Crowdfunding vs. P2P lending: what is the difference?

Crowdfunding and P2P lending both connect investors with borrowers, but they differ in their investment returns. P2P lending involves investors giving loans that are repaid with interest. In crowdfunding, investors usually fund projects or businesses and receive equity or rewards if the project succeeds.

How attractive is the industry to potential P2P lending investors?

Despite potential regulatory shifts and default risks, the P2P lending industry attracts investors, offering high returns and diversification potential.

If you are a P2P lending startup, how easy is it to raise funds today?

Raising funds for a P2P lending startup can be challenging. Increased regulation and competition from established lenders make it a tough market.

How long does it take to create a pitch deck and financial model for a P2P lending startup?

Our team normally completes all necessary documents in 2-3 weeks. However, in some cases, it could take up to a month. Contact us for further details.

What are the key mistakes in pitch decks in P2P lending startups?

The absence of an investment narrative, a solid competitive moat, and a clear path to profitability are the top mistakes we’ve observed in many startup decks. These shortcomings may lead investors to overlook your pitch, even if your solution is disruptive.

How competitive is the P2P lending market?

The P2P lending market is fiercely competitive, with many platforms vying for borrowers and investors through attractive rates, security features, and cutting-edge technology.

What services do you provide for investors looking to invest or already investing in the P2P lending sector?

We help VCs scrutinize their investment opportunities within the P2P lending industry through detailed due diligence. Besides, comprehensive fundraising services are available for our partner fund’s portfolio companies.

Do you provide P2P lending startup M&A support?

Sure thing! We help pinpoint the most relevant M&A options, craft compelling CIMs, and perform modeling for buy-side and sell-side deals.

Do you make intros to P2P lending startup VCs?

We link you with P2P lending venture capitalists, assessing your team, product, and funding goals, and guide your engagements with VCs for successful relationships throughout and beyond negotiations.

Do you have data or research available to purchase on the P2P lending market?

Yes, we do! Our P2P lending market research includes industry reports, competition analysis, etc. We use only reliable data sources to collect the most relevant information for you, such as the industry’s challenges, market trends, and competitive dynamics.

Which growth stage of companies have you worked with in the past?

We provide growth and fundraising support for P2P lending ventures, from Pre-Seed through Series C and beyond.

Venturing into P2P lending? You're in the right place

Leverage Waveup's unmatched expertise in fundraising, M&A advisory, and growth hacking to take your project to the next level. Share your email, and let's discuss how we can help!

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