Crowdestor is among my favorite crowdlending platforms. In this review, I share my experiences based on the first four months investing with Crowdestor.
First I go over key information, pros and cons and my own opinion of Crowdestor. The latter half focusses on the website and its functionalities.
Let’s dig into it!
Table of Contents
Key information Crowdestor
Crowdestor is a crowdlending platform focussed on business investments. The company was established in 2017 and launched its first project in early 2018. Its office is located in Estonia. The name Crowdestor comes from putting the words Crowd and Investor together create – CrowdEstor.
Key information to get us started:
- 4,255 investors from 207 countries
- Over € 9 million capital has been raised
- Interest rates of 13-21%
- 41 projects published and 4 already successfully exited
Crowdestor offers business projects mostly, but not exclusively, from the Baltics. Loans come in Euro and the minimum investment is € 50.
Find below my latest investment with Crowdestor, Industrial Business Center Tvaikonis. Funds will be used to purchase historical industrial zone with a total size of 6200 square meters, to carry out full technical and design project and start reconstruction.
My latest investment with Crowdestor at 20.7% for 24 months.
A picture of the industrial area.
As always I share my thoughts when it comes to risk. P2P-lending inherently comes with risk and it comes down to the risk mitigation measures that are in place for investors.
Crowdestor mitigates risk as follows:
- A thorough due diligence process
- The incorporation of a buyback fund (current size € 73,600)
- Crowdestor takes part in every project as co-developers or as co-financiers (in the earlier projects)
The buyback fund details and current status.
Pros and Cons
- High-end returns, up to 21% recently
- Regular project launches
- Lots of information available on the project
- Countdown available for project launches
- Interest is being generated from the moment you invest
- Buyback fund
- Start investing from € 50
- No secondary market
- No Auto Invest
- No buyback guarantee
My Crowdestor Investments
I became an investor with Crowdestor in March 2019 by investing € 4,000. At the moment I have deposited a total of € 11,000, spread across 14 projects.
All my investments provide returns in the range of 16-21%. Most of the projects provide monthly interest payments. Up until now, returns have been exactly as expected, so props to Crowdestor for that.
Crowdestor pays interest from the moment you invest, even if the project has not been fully funded. It’s a great benefit having your funds generating interest the moment you decide to invest!
On average Crowdestor has published one project per week for the last 4 months.
Crowdestor deposits over time.
My Opinion and Rating
In the intro, I referred to as Crowdestor being among my favorite platforms and this certainly holds true. Crowdestor is rapidly making a name for itself, for good reason. A steady stream of projects, very exciting returns and risk mitigation which I personally find more than acceptable.
The fact that the company is involved in every project either as a co-financier (in the start) or a co-developer greatly boosts my confidence in Crowdestor.
Add the buyback fund on top which will likely hit € 100,000 by end of the year and keep growing. If anything I expect to keep increasing my investments with Crowdestor assuming it keeps releasing high-quality projects.
I highly recommend trying Crowdestor, especially if you have a moderate to a high appetite for risk.
My Crowdestor rating is 4/5.
If you are considering becoming an investor with Crowdestor I would appreciate it if you sign up through this link. Signing up through my link provides a 0.5% cashback for 180 days.
Becoming a Crowdestor investor
Registering with Crowdestor is easy. You can invest with the platform if you meet the following criteria:
- Over 18 years old
- Successfully go through the verification process
- Bank account in the European Union or EEA.
Navigating the Crowdestor website
The website simple and intuitive. All the options can be found on a bar at the top of the landing page. The website has the following options:
Let’s walk through the options one by one.
The top half of the landing page with all the options, as well as the options to Invest at the top right.
When you log in you arrive on the Overview page. Account details and recent transactions are shown.
As you can see I have invested in 14 projects with an average interest rate of 18.12%. My deposits amount to € 11,000 and I have earned € 275.47 in interest so far.
At the bottom, there is an option to navigate to the Account Statement. This leads to a page that contains ALL the transactions connected to your account and can be exported to PDF.
The overview page shows you at a glance your account details and recent transactions.
A small jump to the top right of your landing page shows the Invest menu. One of the most important menus of the website. Clicking this link leads to an overview of all projects with the active ones on top followed by all the other projects. Most recent ones come right after active projects.
Active projects are listed in the Invest menu op top.
The most recently fully funded projects also shown in the Invest menu.
The Investments menu shows a list of all your active investments with additional information such as Amount, Date, Payment Schedule and Loan Agreement. For the purpose of providing more details, I will use my latest Investment as an example: Industrial Business Center Tvaikonis.
The payment schedule provides a clear overview and lists all scheduled payment dates. The loan agreement is made up between myself and the sponsor directly as it with all loan agreements at Crowdestor.
The name of the investment allows you to dig deeper into the investment and read up about the project. Loan details and summary of the business, along with information about the area, market overview and information on expected yields. I have provided snapshots of some of the information available below.
The Investments menu with all your investments and its details.
The payment schedule which constitutes of annual interest payments. Most projects I have invested in with Crowdestor pay monthly interest.
The project launched yesterday and currently is not fully funded yet. Over 500k has been invested so far by 934 investors.
Loans details and information on collateral.
Summary of the project. There is a lot more information on the project available such as market overview, rental yield expectation, and information about the area.
The Transactions menu is straight forward and provides all transactions related to your account. Mine has 62 transactions and you mostly see interest payments as my recent transactions as well as my most recent investment in Industrial Business Center Tvaikonis.
My transactions page with a recent top op, investments, and various interest payments.
The Documents menu provides a quick link to all documents which are available as attachments to projects, as well as the ability to run a tax report for 2018 with investments and earned interest.
My Documents page has links to all attachments files on projects which you can download.
The Profile page contains your personal details and bank account details as well as the ability to change your password and pin code as well as reset your pin code.
Your pin code is used to sign off on investments.
The option to change pin code, password and reset your pin code can be found in the Profile menu.
Add & Withdraw
Adding and Withdrawing speaks for itself really. It’s intuitive because the options are part of the main menu bar. Don’t forget to include your investor number when you transfer funds!!
Share your experience!
Are you an investor with Crowdestor? Please share your experience in the comments below.
If you are looking to start investing with Crowdestor, please consider using this link to sign up. Signing up through my link provides a 0.5% cashback for 180 days.
An overview of all signup offers can be found here.