Envestio – A very promising crowdfunding platform

Envestio – A very promising crowdfunding platform

Envestio’s overview

Envestio is a newcomer in crowd-lending area, with a very promising platform. It features long-term real-estate and business loans, with interest rates usually between 15% and 20%. While there’s no buyback guarantee, new projects are at least 90% secured.

My opinion on Envestio

I’m really impressed by Envestio. For a recent platform, the number of projects they feature is very large and grows quickly; the funded amounts are also very important. The interest rates are great; moreover, the new projects are 90% secured. As I’m planning to increase the risk of my portfolio by moving some funds from P2P loans to real-estate and business loans, Envestio will be my first choice to invest !

Detailed ratings

Interest rates

Envestio‘s past and active projects offer very interesting returns; however, don’t forget that the loans are not totally guaranteed !

Loans liquidity

The platform regularly adds large projects.

Reporting

Although reporting is rather basic, it’s sufficient to manage the small number of projects present on the platform.

Buyback guarantee

There’s no buyback guarantee as such; however, the newest projects are all of “secured debt” kind, meaning that 90% of the capital is secured (see below for more details).

Website ergonomics

The website is well designed and pleasant to use; the English translation is excellent.

Envestio’s pros & cons

Pros

  • Very interesting interest rates
  • Projects in various domains
  • New projects are added regularly to the platform
  • Ability to sell back your investments to Envestio
  • Many ‘secured loan’ type projects, where 90% of the investment is secured

Cons

  • The platform is very young

Loans characteristics

Loans duration

1 month to 1 year

Loans kind

Business

Real-estate

Minimal investment

€1

Buyback guarantee

NO buyback guarantee

Currencies

Euro

Real-estate and business loans

There are currently seven active projects at Envestio, and more than fifteen exited projects. Although most projects seem to be rather short-term (less than 6 months), several are longer than one year. Returns typically range from 15% for real-estate projects to more than 20% for more speculative projects like crypto mining.

New projects are added regularly; several new projects are financed through the platform each month.All investments are made in Euro, and the minimal amount is €1.The involved amounts are rather large; currently the smallest projects needs €100 000, while the largest requires a whooping €500 000.The projects can be broken down into four categories :

  • Real-estate
  • Energy
  • Crypto-mining
  • Other (usually industry-related)

A sample of the available projects

The projects are usually well-detailed; what is missing is a risk assessment like the one provided by CrowdEstate for its investments.

Envestio's project details
Details of a project

An interesting aspect is that borrowers usually pay interests monthly; check the detailed payment schedule for each project.Overall, I really appreciate the diversity of the investment opportunities that Envestio offers; moreover, the interest rates look very interesting.

Buyback guarantee

There’s no buyback guarantee on loans; the term buyback actually appears on the website, but it relates to the opportunity to sell your investments back to the company (see below).However, depending on the project’s type, the investor may get back most of his funds in case the borrower defaults. Indeed, for secured debt projects, at least 90% of the investment amount is secured; see this post on Envestio blog for further details.

Envestio apparently plans to finance only this kind of projects in the future; that would be great news as it would mean an increased safety for investors.Also, Envestio already converted several subordinated loans into secured loans; this added safety came at no cost for the investor. That’s the kind of move I truly appreciate as it shows a real commitment to investors’ safety !

Platforms features

Secondary market

Secondary market available

Auto-invest

NO auto-invest

Secondary market

There’s no actual secondary market; however, Envestio offers to buy back your investment at any time. The associated cost usually seems to be 5% but may vary from one project to another. As usual, I strongly advise you to invest only funds you’re not planning to need !

Manual investing

It’s easy to invest manually at Envestio. Investors are notified of new projects by e-mail; as they’re rather large, there’s enough time to invest manually. The process is straightforward; the only improvement I would suggest would be to add a confirmation of the invested amount.

Auto-invest feature

Envestio currently doesn’t offer opportunity to auto-invest; however, as the loans amounts are large and new projects aren’t too frequent, it’s hardly a necessity. Moreover, unlike P2P loans, I really prefer to be able to study real-estate and business loans before I commit my money !

Website’s ease of use

Languages

English, German

Funding methods

Translations quality

Envestio‘s English version is basically perfect.

Registration process & account funding

Signing-up to Envestio is really trivial. It took me less than one minute to fill up my name, birth date, country of residence. One click one the confirmation e-mail later and I was done ! Overall, registering is very straightforward.Funding my account was also fast and easy. The only supported method is via SEPA transfer.

Website’s design and ergonomics

The website is rather complete and overall well-designed. I initially had concerns regarding the investment process itself, as it involved browsing through several screens in a very counter-intuitive way. Fortunately, this aspect has been greatly improved. All I regret now is the lack of a confirmation when investing; make sure you input the right amount before validating !

As a side note, I appreciated the useful FAQ which is rather extensive and refreshingly free of marketing gimmicks : “Should I Really Invest Solely Through Envestio? No. Investments through crowdfunding platforms remain risky ones, so you should not invest your entire savings in high-earning projects.”.

Reporting

Reporting is rather basic but adequate for the small number of projects. I appreciate the handy chart showing the diversification of investments by sector. You can also see your paid interests climbing nicely, which is always a pleasant sight for investors 🙂

Envestio’s statistics page

Also, the dashboard displays accrued interests for each project, which is a nice touch !

Support

There’s a live chat available on Envestio‘s website, as well as an e-mail contact address and phone number available; I got in touch with them using the chat after my transferred funds didn’t appear on my Envestio account. After a quick chat and an e-mail to their accounting department, they solved the problem and credited my account. The whole process took less than five minutes and I was impressed by their efficiency.

Actual performance of my Envestio portfolio

Although my portfolio is only a few months old, I can publish a rather realistic XIRR. Indeed, all projects pay interests monthly. At the end of September 2018, the value for the XIRR was 14.8%.

It’s lower than expected, because the portfolio is recent and some projects yield interest at the start of the month. Right after most interests were paid, my XIRR actually reached 17.4%, a result much closer to the expected one ! As time goes by, however, these discrepancies will naturally disappear.

Envestio’s competitors

Envestio has many competitors : CrowdEstate, Grupeer, Crowdestor, BulkEstate and EstateGuru.

Grupper and CrowdEstate have been there for longer; their track record is very solid. However, Envestio’s very high returns make it a tempting choice for investors who are ready to take a bit more risk. The partial guarantee offered by secured-debt loans is a very strong selling point, and will probably help reluctant investors to jump on.

Crowdestor is actually very similar to Envestio, but the company seems a bit less dynamic, with less new projects.

EstateGuru also offers both real-estate and business loans, but their projects are much more conservative, yielding around 11% yearly

Finally, BulkEstate only focuses on real-estate; apart from EstateGuru, their returns are usually the lowest among these companies, making their projects less speculative.

Envestio’s facts and figures

Location

Riga, Latvia

Number of investors

2 432

Loans amount financed

€ 6 626 931
As of November 2018

Who can invest

All adults may become investors at Envestio. (Envestio FAQ)

Disclosure

Please note that this review may contain affiliate links. It means that I will earn a commission if you decide to invest after clicking through the link – at no additional cost to you, of course -. Please understand that I have experienced all of these companies, and I recommend them because they are helpful and useful, not because of the commissions I make if you decide to invest through my links.

5 thoughts on “Envestio – A very promising crowdfunding platform”

    • Well, that’s a point that deserves to be clarified. The FAQ states that “any Envestio participant at any moment can sell an investment (…) back to Envestio”; use of “any moment” would imply that defaulted loans are included. However, I would expect the buyback conditions to be obviously unfavorable in this case, as they warn that “in some cases cost of buyback can account to substantial percentage of invested amount”.

      I will get in touch with them regarding this topic and post my findings.

    • Hmm, shame on me, I actually forgot to do it so I just sent my inquiry. Fortunately for me, they’re quick to answer !

      Here’s what they have to say about it : “First of all, yes, secured type projects are at least 90% safe. The rest depends on how resultative the debt recovery process is. For subordinated loans situation is a bit different, as there is no fixed cost of buyback in case the project goes default. It will be set up in case the default really happens (and we understand how tricky the debt recovery process might be). ”

      The difference between subordinated and secured loans is highlighted in their latest blog post, which I encourage everyone to read.

      Also, as announced inn the blog post, they’re trying to convert all projects of kind “subordinated loans” into “secured loans”, and all future projects should be secured loans. Actually, one of their projects (Construction of Modern “Slowfood” Street Market) has already been converted !

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