(Updated August 2019)
I’ve been investing using Crowdestor since February 2019. After all these months I’ve experienced the platform enough to deliver a well-qualified opinion.
Spoiler: it’s currently my favourite crowdfunding platform!
Sit down and read my Crowdestor review 2019.
What is Crowdestor?
Crowdestor is a crowdfunding platform based in Riga, Latvia. However, the company is incorporated in Tallinn, Estonia. It allows you to invest directly in real estate, business, transport and startup projects. In every project offered on the platform, Crowdestor take part as co-financiers and/or co-developers. This ensures accountability from their development partners on behalf of their investors.
All loans are listed in EUR. Investments can be made starting from €50, and all projects offer annual interest rates usually higher than 14%. Actually, the current averaged interest rate of all the projects I’ve invested in is 17.96%.
The team at Crowdestor is integrated by 5 people, according to the ‘about’ section of their website:
Let’s continue with my 2019 Crowdestor review.
What type of loans are available?
Crowdestor offers mainly real estate and business loans. Because of the nature of this kind of loans, its duration usually is quite long. The shortest loans I’ve seen in the platform had a duration of 3 months. The term of the longest ones is 24 months. And the average term is about 10 months.
Crowdestor‘s team is focused in the financial security of the projects they offer. Don’t forget they are also co-financiers. Projects come with one or several assets as security, such as real estate objects, mortgages, pledge on shares, or money from the borrower himself.
Who can invest in Crowdestor?
To become a Crowdestor investor you need to be at least 18 years old and have an active bank account in one of the European Union or EEA banks
Currently, Crowdestor does not charge any fees to investors.
What are the possible ways of money transfer?
There are two possible ways of adding funds to your investor account: bank transfer and TransferWise. However, Crowdestor can’t send money via TransferWise. All withdrawals must be made only by bank transfer.
What is the currency of investment and which is the minimum amount?
Crowdestor only accepts transfers in EUR, and the minimum amount you can invest in a project is €50.
Is there a buyback guarantee?
There is not a full Buyback Guarantee in Crowdestor. However, the company has set a ‘Buyback Guarantee Fund‘, in order to maximize the financial security of investors in case of default by the borrowers. With an initial deposit of €50,000, Crowdestor has been devoting a commission of 1-2% from each project funded by the platform into the fund. At the time of writing this Crowdestor review, the value of the fund is €109,401.94.
The website explains clearly how an eventual project default will be covered: the platform will compensate all investors in a proportionate amount to their contributions to the particular project. Although this fund wouldn’t cover the full contribution of all investors, I consider it’s a smart step to protect both the platform and the investors. The investors would recover part of their investment, but also Crowdestor protects itself against default and bankruptcy by limiting its liability. And moreover, the finances of the buyback fund and the platform’s operations are separated.
Is there an auto-investment tool?
At the time of writing this Crowdestor review no auto-investment tool is available in the platform.
Is there a secondary market?
No, the platform doesn’t offer a secondary market. That means there is no early exit mechanism: once you have invested in one project, you must wait for its maturity date to recover your investment.
Overall Information Table
In the following table, I summarize the main characteristics of Crowdestor:
|Headquarters||Riga, Latvia (the company is incorporated in Tallinn, Estonia)|
|Loan type||Real estate and business loans, with an average duration of 10 months|
|Offered interest rates||>14%|
|Buyback Guarantee||NO (but there is a Buyback Guarantee Fund, explained above)|
➡️ Very high interest rate, near the 20% in average.
➡️ Projects are selected by a competent management team, with experience in the field.
➡️ Crowdestor has always skin in the game. They always co-finance and/or co-develope every project offered in its platform. So they hand-pick the projects very carefully.
➡️ Early investment reward: the interest rate is calculated from the day you invest in the project. So you are also rewarded since that day, till the project targeted amount is fully collected.
➡️ Even if the project is not successfully funded, you will still be paid the interest rate for the days between your investment and the deadline of the project fundraising campaign.
➡️ Detailed information about all the projects, including an extensive market study.
➡️ Since March 2019, there is a Buyback Fund which protects investor’s capital partially.
➡️ New interesting projects are added every month, so it is pretty easy to diversify.
➡️ No secondary market. If you make an investment, you should wait for its maturity date to recover your invested money.
➡️ Minimum amount to invest is €50. This is a disadvantage compared to competitors like Envestio, in which any amount can be invested.
➡️ Reports could be improved. Transaction’s report can’t be exported to Excel or CSV.
My Crowdestor portfolio
I have been investing in Crowdestor since 1st February 2019. The register process was very easy and quick. Funds went from my bank account to my Crowdestor investor account really fast. Since then, I’ve invested in 17 different projects. Here you can see some of them (notice I’ve invested in some projects more than once):
And here you can see my Crowdestor income until July 2019:
Crowdestor review 2019: Final conclusions
My experience with Crowdestor so far has been excellent.
Every month new interesting projects are added. Very detailed information about every project is provided. Interests rates are among the highest in the crowdfunding industry. Payments always come in time, just as scheduled. You can invest from as little as €50. And, besides, they have a Buyback Fund to partially cover your risks.
And a key fact to keep in mind: at the time of writing this Crowdestor review in august 2019, not a single project had defaulted in all the platform’s history.
Finally, the secondary market gives you the possibility of selling your loans in case you need cash in case of emergency.
For all the above, my Crowdestor review 2019 can only conclude it’s a great crowdfunding platform to invest and diversify.
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