Is Peer-to-Peer Lending a Solution for Start-ups?: Q&A with Paul
Dholakia of Rice University  July 8, 2008 RSS Feed Print   •
Comment (8)  With the increasing scarcity of bank loans because
of the economy's credit crunch, entrepreneurs are thirsty for
new sources of capital. One such alternative is peer-to-peer
lending, in which people lend other people money directly,
without the involvement of a financial institution. Transactions
take place online, incorporating elements of social-networking
sites. Websites such as and connect borrowers and lenders, and
the prize on the table is investments.  Peer-to-peer lending
sites tap into the popularity of social networking on the Web,
hoping to imitate the success of MySpace and Facebook. But there
is concern that these sites could fizzle out in popularity, as
many Web start-ups do.  If you're looking for a loan for your
start-up, is peer-to-peer lending a good source? Paul Dholakia
of Rice University's Graduate School of Management recently
published a study analyz