Wisefund – Crowdfunding with 10 Euro – Interview

Hello together,
wisefund crowdfunding 10 euro interview
it's time again and I've launched another crowdfunding test balloon. I actually wanted to start consolidating my platforms. Well, that have to wait.

So let's move on to my latest investment on Wisefund Capital where crowdfunding is possible from with only 10€. You will find an interview later in the blog post. There I asked some questions to Wisefund and CMO Ingus Linkevics answered them. But read for yourself.


Platform

The Estonian platform, based in Latvia, joins the list of new platforms such as Kuetzal and Monethera. Wisefund currently lists three projects, one of them has already been funded. Interest rates are up to an insane 19.7% to a maximum of 8 months! Of course, the high interest rate also comes from the low maturity, but it is a high-risk investment.

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I have invested in both available projects. 125€ in Railway forwarding operations and 75€ in Electronic device stock purchase. For each project there is a short description of the project itself and the company. All in all, it's expandable.

Let us come to a unique selling point of Wisefund namely the minimum investment. Foor other crowdfunding platforms 50€ or 100€ have to invested in a single project, this is possible on Wisefund for as little as 10€. There is also a maximum investment, i.e. 10% of the total financing amount. New for me.

In addition, there is a buyback guarantee, which applies from 60 days on, but here only the original investment is repayed, not the interests. If you want to exit a project earlier, you have to pay a fee of 5% for it.


Interview

Since Wisefund is still new and unknown. Could you please explain the platform and the business model? I think there are already some differences compared to other platforms.

Me and my colleagues have seen and examined very very closely Envestio/Monethera as well many other platforms on the market, their approach, their success etc. With close everyday work with the borrowers we're looking to offer the investors chance to make the right decision with a very comprehensive background information on each project.
Our business model is to become a good partner for businesses willing to grow while they struggle with getting the trust from the banks, but in the same time benefit the investors with high interest rates and short term investment opportunities. There will certainly be loans listed with lower interest rates in near future (I do hope the interest in those will be maintained anyway), because not all of the businesses can afford such high rates. But we're looking at a quick turnaround for both parties – businesses get funding for certain ventures, investors get payback in less than a year feeling more secure on the investment.
Platform itself is dedicated to be very selective on loans listed to ensure firstly the safety of the investors, but still, we're looking to create a platform towards which many SMEs willing to grow would likely turn to.

Ingus Linkevics

As transpareny is key I'd like to know some things. When did you found Wisefund? And why?

The company was founded in 2019. To be exact, March of 2019. But the idea was there for couple of years already in the mind of each of the team members. We saw how Mintos and Crowdestate grew, not even mentioning Funding Circle, October and Linked Finance. They all have different approach and eventually they grew into great companies. Together our team somehow came to an idea to found the company, with Olga as the leader and funder of the project, Rinalds with background in commercial partnerships and real estate development, and me, with experience in online platform operations and legal activities. What we were missing was a technical development and professional legal assistance. Once those parts were covered, we could start talks with businesses looking for loans and go live with the platform for the crowd. The main idea always stays to create a trusted funding partner for growing businesses. My own belief is that businesses create added value which allows the economy and overall prosperity of people to grow. 

Ingus Linkevics

Would you please tell readers a little more about yourself and the team around Wisefund?

I am Ingus Linkevics. Some years I have been working in the legal background at a notary office which allowed me to gain a vast legal knowledge and background, as well as see how businesses and real estates get developed and managed. Other part of my activities have involved online activities with online SaaS platform success development and management and going into international market. At one point I decided to turn to international and online business to expand my reach and future possibilities. This was a wholly different industry, but developed skills of business development going internationally. 
 
Rinalds Ters has been a businessman for a long time, and mostly worked with real estate development under Remax brand. His main role in the company is partnership management and company representation – he's a professional in this area and looking to build a strong brand from the Wisefund.
 
Olga Bobrova has a vast experience in financial industry, working previously with business professionals in financial analytics for many years. As the most experienced member of the team, she headed the company with providing the funding and investment, founded it in Estonia, although we're establishing an office in Latvia also.
 
Then there is customer support who takes care of all inquiries and customer experience, technical support so we're in control of everything, and a specialist on partnerships, Dmitry, who's very well established with contacts in logistics and industrial space – he's working with possible borrowers.

Ingus Linkevics

Could you give me a step-by-step example how a project comes to the your page? And how long that process is normally?

The borrower if approaching is presented with a fee structure of the platform and requirements of our due diligence partners.
If they agree with that, we ask to fill in Application form, provide a set of documents, financial statements and description why funding is required. Once that is meat, we do the checks on the company and it's management. 
After that project is listed with a deadline to meet a certain target. We don't fund them ourselves. If the investors don't see them attractive enough within 3 weeks, return all investment principals and project is not funded.
But if the project is fully funded, we compile all the loan agreements, sign additional syndicated loan agreement and issue a loan to the borrower.
The process until listing on the platform can take from 1 to 2 weeks.

Ingus Linkevics

What if a project missed the funding goal? Does Wisefund invest ‘own' money? 

No, we don't. If project does not meet its target, we credit investor accounts with the principal invested. Unfortunately, no interest is paid for that. But if the project meets its target, investor receives interest from the first day of investment, not the date when the target is met. This is a condition borrowers have to agree with in the fee letter.

Ingus Linkevics

How exactly does risk management work?

An outsourced lawyer with a very professional background takes care of this, does the risk analysis and provides us with final suggestion on each loan request. Of course, there are many things considered in the approach. The analysis for each industry and amount of the loan is taken individually.  

Ingus Linkevics

Will Wisefund also implement an auto-invest?

It's possible, and we've thought about that. But there's no need for it yet, at the beginning of the operations. We'll integrate it once loans start meeting their targets quick enough, and there are requests for this feature from investors.  

Ingus Linkevics

Minimal investment is about 10€. It's nice, but is there a reason for setting it to 10€ and not 50€ or 100€ like other plaltforms?

Why should we do like other platforms? We don't want to limit people who want to start with 10€ a road towards their financial independence. 

Ingus Linkevics

Are there more than the three current projects in the pipeline? And in which frequency new projects come in on Wisefund?

Yes, we have 8 projects under review which, and more are applying each day. We're planning to maintain a frequency of 3-4 projects per month.

Ingus Linkevics

A little bit more into detail. Could you explain the buy-back process in case of default? Only principal and no interests are covered?

We have an agreement with a partner to buy out the loan within 2 business days, if such a request is made by investor, but this will incur a commission charge. Each loan has its early exit commission determined and listed on the Project description. Things may happen, you might need money earlier and wish to get your funds before the term. Our partner takes advantage of that, buys your loan at a reduced rate with an assignment agreement and becomes new lender. They benefit from the difference.
 

In case of Borrower defaults, we've ‘insured' each loan currently listed with the same third-party partner to buyout the loans in case if the borrower is late with the payments for more than 60 days. Our partner will buyout the principal with an Assignment agreement and deal with the borrower and loan collection without the involvement of investors. But the interest for investors will be covered from the protection fund. With this type of approach we're looking to guarantee investors full return of the investment + the interest. 

Protection fund covers things like investor interest rates. Further on there might be loan offers which are not covered by buy-out from third-party partner (this information will be available with the loan offers) – in this case our growing protection fund will be as an insurance for investors in case of borrower late payments or default cases.

 
We understand that sounds like a quite of a burden on borrower shoulders. But those are things they have to agree with before getting funded on crowd lending platform.

Ingus Linkevics

Are there any plans for a secondary market?
Yes, certainly. Once the platform operations expand, we're looking to introduce secondary market so the investors can benefit in short term or would not have to choose to exit with a fee if such a need appears
Ingus Linkevics
 
How do you invest personally? Also in other P2P platforms?
Yes, I have indeed. I have portfolios in Mintos, Crowdestate, Linked Finance and October.
Ingus Linkevics
 
What are your other plans and milestones this year?
We're hoping to fully fund at least 20 projects until the end of this year. And for sure, gain trust from the investors. We hope you will like our selection on the investment opportunities.
Ingus Linkevics
 

Crowdfunding with 10 Euros – a prelimiary conclusion

Wisefund offers a nice website and all looks a bit more professional than other new platforms of the same calibre. The 10€ minimum investment is also great. But that may just be my personal opinion. The fact is, it's a new platform that has to prove itself as always. A complete conclusion can therefore only be drawn when there are possible defaults incoming. Only then we know whether the buyback guarantee really works well or for example the mentioned security fund jumps in and is sufficient.

I'll keep you up to date on new projects and features on Wisefund. I'll also include the platform in the monthly portfolio update.


Information about new projects on Twitter and Instagram

On my own behalf, I would like to mention that I also present new projects Twitter and Instagram, in which I invest myself. So follow me :).

Portfolio-Update July 2019

Hello everyone.

Today I would like to launch the Portfolio-Update July 2019 series, in which I would like to present my portfolio and performance approximately every one to two months. I'm just going through all the platforms and try to explain any XIRR anomalies and have a look at some of my investment decisions.

Kuetzal

On Kuetzal I have been invested in three projects since May with just over 1.100€ and the interest payments so far have been arriven on time. Of course, you have to wait and see. Currently, Kuetzal the XIRR ranking by a clear margin and 18.51% (+2.85% compared to the previous month).

As I am writing about the platform, I would like to point out again the cashback marathon . It runs until 31. October.

Unfortunately there is a small catch. You have to invest minimum 1000€ in a single project if you want the cashback.

Envestio

Since beginning of April about 1300€ have moved from me to one of Envestio's countless bank accounts. However 160€ is still waiting for a new suitable investment opportunity. XIRR is down and is currently at 13.37% (-0.38% compared to June), but is approaching the forecasted 16%. I have invested in five projects there. By the way, I handle this in such a way that I put the money first in larger sums per project and then in smaller sums of €50. The newly introduced auto-invest makes it a little easier when new projects come in. They were always gone very quickly. However, a minimum investment of 100€ is also required. I personally would prefer 50€. Nevertheless, everything at Envestio has been working smoothly so far.

Crowdestor

My favorite platform Crowdestor is ranked 3rd in the XIRR ranking with 12.87% since April, gradually approaching the 17.01% displayed in the dashboard. In the previous month it was 12.25%, so an increase of 0.62%! If you're wondering why there's a difference here (and on other platforms too)? Easy to explain. On the one hand, I haven't invested that long, on the other hand, there are e.g. on Crowdestor projects that pay interest only once a quarter or half-year. So the whole thing becomes really meaningful only after round about one year. My investment is almost 2000€ and will certainly get bigger :). An auto-invest and a second market will (hopefully) be added soon at Crowdestor.

Grupeer

With 12.13% (+0.28% compared to the previous month), Grupeer is in 4th place. I'm actually quite happy with the platform. The interest rates are getting in quite slowly, but at the end of the month I am always surprised how much interest came in. I am invested at Grupeer with 1250€.

Mintos

Yes, what can be said about my biggest position Mintos (~6300€). It's running perfect and so I also profit. In the previous month XIRR was 11.45%. At the end of July 12.01%. The jump was made due to the current interest rate high and the sale of some older loans, which are still approximately 10% and had to give way to new 15/16% loans. The weighted interest rate of my loans at Mintos is approx. 14.20%, so XIRR will continue to rise.

Mintos offers you a bonus to start on the platform.

IUVO

Smooth 12% indicates portfolio performance for IUVO, at 1050€ investment. The platform itself shows 14.21% in the dashboard. The difference here is due to the fact that IUVO or the loan originators do not pay interest on late loans. Nevertheless, the internal interest rate is steadily increasing and I am very, very satisfied with IUVO. This is one of the platforms that once set up properly, just run. No auto-invest problems and a very fast and nice support!

By the way, IUVO offers you up to 90€ for the start on the platform. If you're interested, just send me a short message.

PeerBerry

11.15% is attributable to PeerBerry. The Auto-Invest is set at 12% and the platform itself shows 12.31%. I used to have some 11% loans in my portfolio, so I think that explains it. PeerBerry actually runs top, only the bank statement doesn't work for some time now, which is a bit annoying. I'm invested there with approx. 1200€.

Viainvest

Since April I have been investing at Viainvest with just over 1000€. Why? I said goodbye to Twino, searched for a replacement and found it in Viainvest. An XIRR of 9.34% is very good for this short time, especially since there are only 11% loans on the platform anyway. So approach is coming bit by bit.

You get 10€ for the start at Viainvest. For this a minimum investment of only 50€ is necessary.

Bondster

I just realize that I have many favorite platforms. Bondster is one of them. On the Czech platform there are already 6 loan originators and you can achieve a fairly good diversification. In addition many 13% loans are offered. The start of the investment was with a small sum of approx. 400€ in May, which is why the 9.08% already look very good. Highly recommended!

With the promo code 05772, Bondster has 1% on top in the first 30, 60 and 90 days!

Bondora

Child of sorrow… For me the loan portfolio at Bondora consists only of red loans, I sold all other loans after 4 years of investing. Through the recovery process I hope that something remains. Of course I could sell them with high discount, but I'm not reliant on the ~380€. Therefore, the money stays where it is for the time being.

I can't really recommend Portfolio Pro. If you stop putting in more money, the return drops very quickly into the basement. Although Bondora's recovery process is one of the best in the p2p industry, there are plenty of alternatives.

NeoFinance

As a ‘replacement' I wanted to have another ‘real' P2P platform in my portfolio. I found it in NeoFinance, where I invested 1000€ since March. But huh, 10.24% last month and only 7.80% this July? Yes, I once tested the sale of an overdue loan. This is, of course, directly reflected in the XIRR. So far I am quite satisfied with NeoFinance, but a real conclusion can only be drawn here after some time has passed. By the way, the return calculated by the platform is 18.46%! And this despite the deduction of 15% withholding tax (can be reduced to 10%, by the way).

At NeoFinance, there is a 10€ bonus for an investment of at least €150 within the first 90 days.

Viventor

I am a bit disappointed with the performance at Viventor. Here I have invested a little over 1000€. My loans range somewhere between 12% and 16%. The XIRR is however really miserable at 6.64% (+0.18% compared to the previous month). About 1/3 of the loans are delayed. Maybe Viventor just needs some more time. I'll keep you updated!

Bondora Go & Grow

The better product despite a capped interest rate of 6.75% is Go & Grow. I mainly use it for a small part of my cash inventory. Since there are some debits taking place here and there and you have to pay a fee of 1€, the XIRR is slightly lower with 6.22%. However, I do not want to miss the liquidity available here.

5€ is available at Bondora right after registration. If someone has a larger sum and want to invest it in Go & Grow, just write me a short message (I'll share my bonus then).

EstateGuru

Now let's move on to EstateGuru and the 18 projects I'm invested in. XIRR currently stands at 5.97%. That's ok, because some of the projects are final or pay per quarter. I'm invested there with 1200€. There are (yet) no defaults. So far I can highly recommend EstateGuru in the real estate sector and I will also expand my investment there.

At EstateGuru there is 0.5% cashback on your investment in the first three months.

Monethera

Since I am a bit more risk-taking on the road here and there, I also had a look at Monethera. I have been investing there since June with a small amount of 275€, but I invested another 250€ a few minutes ago. The first interest rates were already there. You can find an interview with CEO Andis Tauber on my blog. I set XIRR to 0.00% because it's not yet indicative. But all the available projects offers interest of >18%!

Bulkestate

1150€ I have invested in Bulkestate. XIRR = 0.00%. What's the reason? All projects are final. In the event that there are no defaults (which I hope so, of course), the return is expected to be around 15% commute. I will also increase my investment at Bulkestate

Exporo

Unfortunately this investment posibility is only for investors from Germany, Austria, France, Hungary, Ireland, Luxembourg and Switzerland. (yet). I am invested in an stock property (so an existing building which is already rented) at Exporo with 1000€. The expected return is expected at 4.5% and payments come in every quarter. However, I would like to expand the investment in the future.

Exporo does also offers real estate development projects. Here everybody can invest. Maybe for diversification it's interesting for you.

By the way, Exporo offers you 100€ cashback for your first investment.

Crowdestate

My third-largest position with 1500€ I invested at Crowdestate with a dashboard return of 15.25%. Yesterday I already received the first interest of two projects, skin in the game I have at 6 projects. The negative XIRR is due to a purchase of a project via the secondary market. Also Crowdestate, will develop slowly I think, as some projects are final or pay interest only per quarter. Nevertheless, due to the good track record and the previous projects, I am very optimistic.

ReInvest24

For ReInvest24 the 2% fees per project have a negative influence. The first dividends have already arrived and there is also a new project, which looks very interesting (have a look 😉). Almost 600€ are invested here.

Outlook & Summary

Of course the top performers are  the crowdlending platforms. Led by Kuetzal and close behind Envestio and Crowdestor. High returns, high risk, but as we all know, you can't get something from nothing. Grupeer and IUVO are developing very well and Mintos will continue to be my biggest position, which will certainly be increased again. All in all I'm curious to see what how the portfolio develops in August.

Disappointed and skeptical I'm with Viventor, which would normally have to deliver up to 14%.  There will also be a new platform in my portfolio in August. So be curious! See you on the next portfolio update!


Revolut – My account for p2p and crowdlending

Since I don't want to transfer everything from my regular bank account to the platforms, I was looking for a simpler solution. A few months ago I stumpled upon Revolut.

After being skeptical at first I'm now a big fan of the app. Transactions to the different platforms and also withdrawals are executed very fast. In addition  you can with the free Revolut VISA card with max. 200€ cash limit per month at an ATM. And that without additional costs!

In addition Revolut is my faithful travel companion. Since I also work abroad from time to time  I also looked for a way to simply exchange currencies. This is easily possible with the Revolut app. Also without fees (up to 6.000€ per month)!


About new projects on Twitter and Instagram

On my own behalf, I would like to mention that I also present new projects on Twitter and Instagram, in which I invest myself. So just follow me :).

Monethera – Interview with Envestio light?

ATTENTION! INVESTMENT STOPPED!

Monethera shut down all platform activities. The ostensible reason is COVID-19. The platform had many red flags before. So it seems to be a SCAM. More information you can find in the Monethera Telegram group. Please don't register or invest at the platform!


A few days ago a new platform called Monethera was mentioned in P2P Facebook groups and forums. I registered there for testing and would like to give you some information and a short interview.


Dashboard, projects and project descriptions

Monethera does not yet have a significant track record as a platform. So you should look at the whole thing calmly and with argus eyes. At first glance I noticed the very good German translations (relevant for me) – in contrast to some other young platforms. Otherwise the platform offers similar features to Envestio. Very similar. But there are smaller differences as you will read.

Monethera offers a project overview like other platforms too. Currently there are only three projects. Namely one real estate development, a business loan for a luxury clothing company and a business loan for a sturgeon farm. Pretty fishy :). However the projects are very attractive with an interest rate of 18%. The maturities are 6, 8 and 12 months.

There is also an information page for each project. However this is very sparse. There are only one or two sentences to the borrower and what the loan should be used for. I would definitely expect more here.

In the following interview I wanted to know from the platform who they are and how some things like the buy-back work exactly.


The interview

Monethera is a very young and fresh platform. Does the platform briefly present?

The business model of Monethera is associated with the financing of a project by a large number of individuals. Fundraising begins with an announcement introducing the public to a project that needs financial contributions. After the implementation of the project – the borrower under the contract must return the money by paying pre-determined interest. Funding is usually based on the “all or nothing” principle. In other words, the project starts implementation only when collecting the necessary amount of funds.

Andis Taubers

Since transparency is a key element in this investment area, I would like to know a few things about Monethera. You founded Monethera as a private investment fund in 2017. The platform itself in November 2018, but the URL was only released about 4 months. How did the platform come about?

As a private investment fund, we have achieved some success. The idea of opening an open crowd-investing platform was born in 2018. This decision was made to give individual investors the opportunity to invest with us in the most interesting, profitable and noteworthy projects.

Andis Taubers

Can you say anything about your career and the team?

Andis sent me his CV and that of his colleagues. I publish this without comment. But I don't know what to think of the individual positions. If there are any further questions, just write it to the comments.

Dieses Bild hat ein leeres Alt-Attribut. Der Dateiname ist monethera_cvs-1024x699.png
Monethera – Team CVs

How does project acquisition work at Monethera and how long does it take for a project to be available for investors?

1) We are looking for profitable projects or project owners send us projects for consideration.

2) We conduct our own research and comprehensive verification.

3) We approve the project if Due Diligence was successful.

4) We conclude a loan agreement with the project.

5) The project is provided to the attention of investors on the platform.

Due Diligence may take from 2 weeks up to 2 months, depending on a project and area of activity.

Andis Taubers

How does your risk management work?

First our risk analysts are looking for any possible investments risks in the selected project/borrower. If they are identifying any risks – they have to rank them.

After rating the risk they are looking for a way to get rid of them. If previous steps are passed successfully we conclude a loan agreement with a borrower.

Andis Taubers

The platform currently lacks an auto-invest. Are you planning something like this?

Probably auto invest will be implemented to our platform in July 2019.

Andis Taubers

Currently, there are only three projects. Are further projects planned or ready for publication?

There are 2 projects already pre-approved and 5 more on the stage of Due Diligence.

Andis Taubers

Other platforms have introduced a buy-back fund. How do you think about this idea?

This is a great solution and we fully support it. In the event of a default of a project – Monethera will cover 35% of users' investments.

Andis Taubers

More into detail. Can you explain the buy-back process in the event of a default? Does this work exactly as e. g. on Envestio?

There are two buy back options.

1) You have invested 100 EUR in one of the projects on our platform.

If you want to exit earlier you, you will get back 95EUR back and no any profit extra. (The buy-back system will be fully integrated to our platform soon)

2) Monethera keep a reserve fund to cover Investors in a case of default.

If any project will be unsuccessful all investors will have back 35% of their investments.

Andis Taubers

Are there already plans for a secondary market?

Not for a present moment. If situation will change – we will make an announcement.

Andis Taubers

Are there any annual reports when Monethera was a private fund that you can make available to investors?

Soon we will publish reports for the time when Monethera was a private fund where you can see the investment statistics.

Andis Taubers

What are your pleadings for 2019? And what is the next milestone?

We are going to increase the user base of our platform in order to diversify investment portfolios to the maximum, which accordingly reduces investment risks.

We will look at the results at the end of 2019, after which we will draw up a development plan for 2020.

Andis Taubers

Preliminary assessment

New platform, new happiness? Possible. Very attractive offer, but just a very young platform, similar to Kuetzal. However, the fact that I have already been able to speak to Kuetzal CEO Albers Cevers in person means that the investment there is something else.
Nevertheless I will start at Monethera with a small test balloon of 100€ and continue to report on how the platform is developing. Even after the interview there some open questions for me which I want to clarify.

If you still have any questions, please post them in the comments. I will forward them to Monethera!


Digging deeper! Facts!

Because e.g. the FAQ is 95% identical to Envestio there is a plagiarism suspicion. There were also other inconsistencies regarding a not mentioned person of the management.

Since I and certainly also other investors are skeptical about new platforms at first, I perstered the Monethera team a little bit.

Buy-Back
  • When will interest be paid?

From the project start date.

Projects and possible defaults
  • What happens if a project is not fully funded?

There are two scenarios here. If more than 80% of the target is reached, Monethera contributes the remaining 20%. If <80% investors receive their money back.

  • What happens exactly in the case of a default?

Investors receive 35% of the investment in case of project failure. At the end of the project.

  • What about the remaining 65%?

The remaining 65% and interest will be issued when Monethera collects the entire debt from the project owners. The term depends on the speed of the judicial process. Based on judicial practice, this may take up to one and a half years.

Monethera carefully selects the investment targets. Furthermore, the platform monitors compliance with the contracts. Guarantees are required from the borrowers (personal guarantees and commercial pledging).

Transparency
  • What is there to know about the copied texts?

Monethera claims to have hired an external copywriter here. He did his work in “bad faith”. They are already working on a global text change. Conceptually all information is correct. The necessary changes are made in the “Cooperation” area. It takes a few days to solve the problem.

  • Who is Andrei Bogdanov?

Andrei Bogdanov is a business man. Togehter with Andis Taubers he is owner of the company. Andis Tauber is the CEO.

  • Inconsistencies with business address

You can find the official address of Monethera on the website. The company is registered in Estonia for tax and legal reasons. This has led to confusion due to the Google Street View images of a residential building. The office is located in Riga. To be precise, Krišjāņa Valdemāra street 118, Riga, Latvia, LV-1013 .

  • Is there an annual report when Monethera was a private investment fund?

They sent me a PDF which I publish below without any comment.

Crowdestor – Interview, auto-invest and secondary market


Hi there. After the presentation of Kuetzal I would like to introduce you to Crowdestor today. I've been invested here since April 2019 but I already like the platform extraordinarily well. The company is based in Estonia (Tallin), but operates from Latvia (Riga). The Crowdestor interview also gives some information about the auto-invest feature and the upcoming secondary market.

For 50€ as a minimum investment you can invest in a wide variety of projects there (details in the interview). Portfolio Performance shows me a return of 12,40% after just under two months.

Platform information

Unlike e. g. Envestio Crowdestor announces new projects a few days in advance. This gives investors the opportunity to transfer further funds. Only the details page will not be accessible until the day of publication. I think that could be changed in the future.

Crowdestor pays interest from the date of the investment and not until the selected project is 100% financed. There is also a minimum target for projects.

Another highlight is the buy-back fund. More information in the following interview.


The interview

Hello, first of all thank you for the interview! For those who don't know yet what Crowdestor is. Can you briefly present the platform and say something about the business model?

Crowdestor is a platform that offers a wide range of project types. You can invest in real estate, energy, transport and business projects here for as little as 50€.

Crowdestor

How Crowdestor was founded?

There wasn't really a platform where you have different options for your investment. Most other platforms focus on a special field. That's why Crowdestor was founded.

Crowdestor

You had a huge stand together with some projects at the INVEST in Stuttgart. Was there an increase in German investors after that?

Through Stuttgart we actually had an increase in investors. But we wouldn't say it was majority German investors. Many investors have been registered from a wide range of countries.

Crowdestor

Is there any new information about when you want to release the auto-invest feature ? And can you already say something about the settings?

The auto-invest feature is scheduled for the end of the summer. It will be able to adjust the project type, the maximum investment amount, the size of the project and the interest rate. So everyone finds the perfect project to invest.

Crowdestor

Can you give me a brief example of how a project ends up on the Crowdestor page?

Until now we only work with Baltic projects because it is easier to obtain the required data and evaluate the risk factor. Creativity also plays a role in project selection. To do this we give the projects a free hand how and with which information they would like to present their project. After verification of these information there are no more obstacles to present it on the page.

Crowdestor

Do you think you can continue holding the number of projects you've acquired in recent months?

We try to publish a project about every two weeks. But if we think one of the projects has challenges, we will postpone the publication-quality over quantity. There are currently 4 projects in the queue and ready to be published.

Crowdestor

One of your goals for 2019 was to build the buy-back fund. At this stage, 737.000€ are in it. Do you still plan to raise 100.000€ or even more?

Yes, the goal is still 100.000€ for this year. But if that is achieved the next goal will get bigger.

Crowdestor

How does the process work in the event of a default?

Of each project financed 1% of the investment is channelled into the buy-back fund. If there is a problem with one of the projects we use the money from the buy-back fund.

Crowdestor

Are there any plans for a secondary market?

Yes, there are very specific plans. There will be a secondary market by late summer. So you can look forward to it:).

Crowdestor

Preliminary conclusions

Since I am still quite new at Crowdestor I can't report anything negative yet. On the contrary. Interest is paid in time. There are enough projects which are also very attractive. And the buy-back fund personally offers me more security through its real value than a pure buy-back guarantee.

I was also able to speak at the INVEST with the CEOs Gunars Udris and Janis Timars and also with the representatives of some of the projects in which I'm invested. These were very pleasant conversations and with Gunars and Janis you notice they have grand plans.

On Crowdestor I will significantly increase my investment in the near future through the interview, the upcoming auto-invest feature and the secondary market.


The Deal – 1% On Top

For all those who want to test out the Crowdestor, there is an promo code. This means that there is an additional 1% on your invested amount. In order to make the whole thing transparent: I will also receive 1% of the invested amount.


Crowdlending at Kuetzal-Interview with CEO Alberts Čevers

ATTENTION! INVESTMENT STOPPED!

Please read this link regarding Kuetzal!

 

Now there is actually the first ‘real' blog post after the blog presentation. Today I would like to introduce you to the crowdlending platform Kuetzal through a short interview with CEO Alberts Čevers. Enjoy reading!


Platform, projects and return

The projects on Kuetzal range from real estate development to cryptocurrency mining. The term of the loans is usually 12 months. Sometimes up to 48 months. The investment will be paid with an interest of 6-21%. The minimum investment is currently 100€.

The Latvian platform is still very young. The foundation was in July 2018. Nevertheless relatively large projects have already been financed. So Kuetzal has yet to prove itself. So far no project has been officially successfully completed.


The interview with Kuetzal CEO Alberts Čevers

Hi Alberts. Thanks for the first interview. Can you tell me and the readers of the blog a bit about Kuetzal?

First and foremost Kuetzal brings together investors and promising projects. Today investors from developed European countries lack high-interest investment opportunities in their local markets. At the start of Kuetzal we already knew several companies that wanted to develop their business through crowdinvesting and that's exactly what we used. The market is developing very actively and every day there are more investors using crowdinvesting as portfolio diversification.

Alberts Čevers

At INVEST in Stuttgart we had a short conversation. You mentioned that you worked for the P2P platform Viventor in the past. How did that influences the founding of Kuetzal?

Basically my journey started when I was studying in Barcelona. In the semester break I started working for a financial company that has offered a whole range of services: short-term loans, property-backed loans, vehicle-backed loans. At the time, I realised that my future lies in the financial sector.

After I finished my studies I worked in Barcelona for another year. Also at the P2P startup Viventor.

Back then the crypto market was also at one of its peaks and I tried a bit of short-term crypto trading. In less than a month I have made a lot of profit and finally decided to return to Riga in my own country of Latvia.

Shortly after that me and my team founded our startup Kuetzal. The market is very interesting and motivating and today I'm glad to be here.

Alberts Čevers

I was a bit surprised because of your young age. Do business partners underestimate you sometimes ?

Yes that happens sometimes. But time is also progressing of course, and every day I meet less sceptical people in relation to my person. The best way to make a good impression is ultimately to prove to investors that they are getting what they are promised. We are also trying to do the same at Kuetzal.

Alberts Čevers

As far as I know Kuetzal has only three employees. Is there a reason for that?

There are even four people. Our project manager Romans Antonovs, Head of Marketing Nikita Pavlovskis, our COO Ruslands Doroshenko and my person, Alberts Cevers as CEO. We also work with a marketing company which is responsible for the Kuetzal design. We also outsource the entire IT part. After all that is a big part of our business. We prefer to keep the team rather small and mobile but certainly as the platform grows the team will too.

Alberts Čevers

I noticed that the German translations are not quite optimal. Will there be a change soon?

We work here with translation companies which also translates our website. Since we have already received the feedback we are currently looking for a new translation company.

Alberts Čevers

What is THE competitive advantage of Kuetzal over other similar platforms, e. g. Envestio or Crowdestor?

First of all I think that the general demand of the market is much greater than Envestio, Crowdestor and we can serve. That's why it doesn't really feel like a competition. At least so far. But when we talk about the competitive advantages our Kuetzal Care service is unique. Although the interest rate for us and for the mentioned platforms is above the market average. Kuetzal also offers attractive bonuses such as an affiliate system and other promos. We have also planned many other interesting possibilities that we will present soon.

In addition the buy-back which is offered by Kuetzal is not a classic one but gives investors the opportunity to exit earlier. All in all I believe that Kuetzal is a very attractive product for investors.

Alberts Čevers

The minimum investment is currently 100€. Are you planning to reduce that?

Yes, we're thinking about that right now.

Alberts Čevers

Would you give us a step-by-step example of how new projects are approved by Kuetzal?

First we check the borrower's story. So whether he was already had problems with other companies or the government. Then we want to know more about the future plans, whether they are ambitious and know their job and the market. After that we analyze the annual reports and the market in general. At this stage most companies are already falling through. We are very strict here because we only want to offer safe and secured deals. The final step is then the agreement and confirmation of both parties.

Alberts Čevers

Two advantages on the part of Kuetzal are Kuetzal Care and the buy-back. Can you briefly explain how both work? 

Kuetzal Care guarantees that a particular project will be financed. No matter how much has already been invested by investors. If the project does not reach the minimum target Kuetzal will use its own resources to close the gap between the amount already invested and the target amount. Kuetzal has agreements with investment funds, banks and private investors on this. These are always ready to be involved in Kuetzal projects. This process provides additional guarantees so that a project is ultimately fully funded.

The buy-back on the investment is done by the platform itself, not by the projects. We have personal guarantees on the part of the projects and in sometimes additional guarantees. Mostly in the form of real estate. Investors can also drop out for 10% before the end of a project. In the worst case scenario the default of a project Kuetzal guarantees to repay 100% of the investments over the course of two months after the default has been announced. This time is used to start the legal process. So two months is the maximum. We expect the investments to be payed back in 1-2 weeks. There are no fees for investors. But once again I would like to remind you that this represents the worst case scenario and is very unlikely.

Alberts Čevers

How does Kuetzal secure the buy-back?

We secure the buy-back with our own resources, other guarantees and personal guarantees.

Alberts Čevers

I am aware that the scenario is probably unlikely. But what would happen if all investors in a project left the project at the same time with the mentioned 10 percent loss?

At the current volume we can use our own funds to operate the project but the scenario is really unlikely.

Alberts Čevers

Investors in platforms such as Envestio have often the problem that new projects are mostly financed in seconds. How would Kuetzal want to prevent such things?

Unfortunately if there is a very high demand for projects such on Envestio not all investors can participate. One way to prevent this is to announce projects early. This allows anyone interested to prepare their investments.

What are your plans for 2019 and also for 2020?

We set only the highest goals and expect to be among the most successful crowdlending platforms in Europe in two years. With branches in the most sought-after European countries.

Alberts Čevers

How do you invest personally?

So far my portfolio is divided into projects where I have personal contacts or am personally involved and cryptocurrencies.

Alberts Čevers

Personal conclusion

As mentioned above Kuetzal is still a young platform. So time will tell how the whole thing is shaping up. I will keep you informed. After the talks with Alberts at INVEST I have decided to invest €1000 on Kuetzal. One reason was also that I want to further diversify my portfolio. However there will be a throwback blog post about this soon. There I would like to explain on the one hand, which platforms I started with and on the other hand what the motivations were to add new platforms.

What else would I like to see? More transparency! In my opinion that is one of the key elements. I have also communicated this wish for more transparency which I am sure other investors also have.


Summer Cash Back Marathon

A few days ago the first of the announced promo actions was also published in the Kuetzal newsletter. The Summer Cash-back marathon.

#CASHBACKMARATHON

 

If you have more questions about Kuetzal as a platform just post it in the comments. I'll forward the question to them.

Why am I starting this blog?



Now why I started this blog? Good question. I think it's a mixture of enthusiasm, curiosity and also a little bit of discontent.

Enthusiasm because the topic of ‘investing' is my passion. Curiosity, since I have never dealt with anything like blogging so far (other than consuming other blogs).

But why discontent? I think that despite the limited or restricted and less profitable investment opportunities (at least in Germany) there are far more if you just look a little outside the box. Of course this blog is initially about P2P and crowdlending but it should also offer a different view of the whole topic of investing.

My goal is to show these possibilities to the readers and to deprive them of some fear of investing. For this purpose I will upload monthly interviews with CEOs of some platforms and generally present platforms where I'm personally invested in.

With that in mind, have fun reading! 🙂

Schreib etwas oder tippe / zur Blockauswahl

PS: Do you have questions about certain topics? I'm happy to answer these.