Envestio Crowdinvesting Platform Review

Published by Daniel on

(Last Updated On: March 6, 2019)

Envestio is a crowd investing platform based in Estonia. It offers investing opportunities from a wide range of industry sectors. The investments offered have a yearly interest rate between 12% and 22%.

Key features:

  • Loan types: Business Loans
  • Loan terms: up to 1 year
  • Interest rates: 12-22%
  • Fees: no fees
  • Minimum investment: 1 EUR
  • Currency: EUR
  • Secondary market: no
  • Auto-invest: no
  • Buyback guarantee: yes, with a 5% fee

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My portfolio:

  • Last update: March 2019
  • Started Investing: November 18th, 2018
  • Current value: 1 041.23 EUR
  • Profit: 39.22 EUR
  • Average interest rate: ~18%

I’m sitting with around 150 EUR waiting to be invested on the platform and for the past week, there’s been no new project. I’m pretty sure if I withdraw them the very next day there’ll be a project available.

The loans in my portfolio have an interest rate ranging from 15% to 21% and the loan terms range from 3 to 12 months. I’ve been investing around 100 EUR in each loan and so far all the interest payments came in time.

On the other hand, the funds I have available come from a loan that reached maturity and was paid in time. Envestio looks really good so far!

Who is Envestio

It started as a private investment fund and switched to crowd investing in December 2017. They’re relatively new on the market, and they only funded their first project in February 2018.

The investments offered to the users are in the form of loans, so you’re not buying equity from the company you’re investing in. Instead, you’re investing a sum of money for a period of time for a generous interest rate.

Can I join Envestio?

Yes, from anywhere in the world. After registration, you can fund your account by either credit card or bank transfer.

If your primary bank account’s currency is not EUR and you want to cut some currency conversion fees you can always use Transferwise or Revolut. I personally use Revolut because it has slightly better rates than Transferwise (and slightly more negative feedback, but that doesn’t bother me).

Why invest in Envestio

Buyback Guarantee

At any moment in time, if you wish so, you can sell back to Envestio your investment. It will, however, come with a 5% penalty fee, but it’s still nice to know you can free up your capital at any time.

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Ethical Investment Projects

Envestio approaches its investment projects from an ethical perspective. The projects they fund help build businesses and infrastructure and help create stable jobs.

Good returns

The returns are between 12% and 22% yearly. Each investment project has a payment schedule visible to all investors. Additionally, each investor can view the published annual financial statements of the companies they invested in.

The projects offered range from real estate to energy sector to crypto mining sector. Each project has a page explaining the details of the business model and why it needs that specific amount of funding.  The interest rate offered varies depending on the loan term and the risk category (real estate projects would carry a lower risk than crypto mining ones).

Investing on the platform

The user interface is rather ambitious, with filtering based on various criteria, sorting, paging of the results. The problem is that so far there are only 2-3 projects active at a time, so the interface looks a bit over-engineered. This being a new platform there might be more projects in the future though.

envestio available loans

You can view more details about the investment on its own page. The details include details about the borrower, payment schedule, loan purpose.

Each project has also a nice presentation page describing the company, the purpose of the loan and how they intend to use the loan. This is helpful because you can research those company outside of Envestio platform and get a second opinion about the company health, other loans, etc.

There’s no auto-invest feature yet, although their website states it is in development.

There is no secondary market either, so it’s a bit harder to exit your investment than other platforms like Mintos or Viventor. However, Envestio lets you sell your investment back to them, with a 5% fee.

Conclusions on Envestio

Envestio is a good option if you need to diversify your portfolio of online investments.

The interest rates are great, and the repurchase guarantee offered by Envestio, even with the 5% fee, offers an additional security cushion in case you want to free up your funds early.

The projects you invest in help creating stable jobs and bring value to the economy. So, there’s that. It’s a good alternative to peer to peer lending platforms that offer payday loans if you have an ethical problem with that (I do).

I don’t like the fact that there’s no constant flow of projects available and my funds sit idle without knowing when there’s going to be a new project. I would like it very much if Envestio had a feature similar to the one Crowdestor offers, telling potential investors that a new project will be available in 7 days.


Daniel

Learning and sharing what I learn about alternative investments.

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