High Risk – High Returns – Review of Envestio

Review of Envestio P2P Platform

Young Envestio Offers High Returns & High Risks

Envestio was born as a private investment fund in 2014 and started offering P2P investment opportunities to the public in December 2017.

With only a 1-year track record and funding hovering just over 7M Euro, Envestio is a small player and still new on the market. The platform has, however, attracted much attention because its high returns.

Return rate is currently (December 2018) between 16 and 23.5%, with a typical rate of 21%. Most loans run for 12 months or less.

UPDATE July, 2019: Expect slightly lower rates in 2019. Currently rates are around 16-18%.

Envestio offers loans in the high-tech, energy, and real estate sectors. The idea is to provide funding to companies which are looking for capital to expand their current business and offer high returns to investors. During 2018 Envestio listed around 60 new projects, all successfully funded. 15 projects have already been completed with full payments to investors.

As a relatively new player, availability of new projects – and new borrowers – suffers. There are times when there are no new loans to invest in, which may create idling funds on your account. New projects are quickly funded, so cash on your account and e-mail alerts about new projects are essential.

UPDATE July 26, 2019: Envestio introduces auto-invest (finally) with a minimum of 100 Euro. So, now you can sit back and relax. No need to keep a close watch for new projects any more..

What are the risks?

What Are the Risks?

While Envestio analyses new projects from financial, legal, technical, marketing and other perspectives before approved, the risks should be closely considered by anyone making investments on the platform.

The platform provide full information about specific borrowers and necessary agreements. In some projects, you can find additional guarantees, like a mortgage (secured debt), but other projects don’t have these additional guarantees and are basically unsecured.

But with Envestio’s buy-back guarantee you can free up your capital at any time and sell back your investment. This guarantee is backed by Envestio and it comes with a penalty fee of 5%.

Envestio’s Key Values

Envestio is a supporting member of the European Crowdfunding Network, ECN, and seems to take transparency and its obligation to its investors seriously.

The company mentions its transparent business culture as one of its key values and say that they try to communicate honest and unbiased information to investors, borrowers, press, and other market participants.

Note that a one-year track record means that annual reports from the transition into a P2P platform aren’t available yet.

Start Investing With Envestio

Referral Program

The referral program at Envestio is very generous (December 2018). Both the one who invited a new investor and the one who completed a registration will get a 5 first deposit bonus. This bonus is paid within 24h after at least EUR 100 is transferred to the investment account of newly registered Envestio participant.

An additional “timespan” bonus is calculated during the next 270 days (9 months!). Envestio gives this bonus to both participants and it is at least 0.5% of your investment.

Use this link to make sure you don’t miss out on your high returns and generous bonus:

Sign up with Envestio here!

Use of Website

The website is simplistic and fairly easy to use.

Registration process is similar to the one on many other P2P Platforms. In other words, before you start investing you must scan an identification document (like a passport) and some proof of residency (like a utility bill).

You add your funds through bank transfers. When we tested the platform, transactions were completed within 24 hours. You don’t have to reside within Europe to participate, but note that all transactions are in Euro or Bitcoin.

We found that there is sufficient information about each loan, collateral, and the company itself to help with your investment decisions.

With a minimum investment amount of only €1, it’s easy to get started. (To get your sign-up bonus, you must, however, add at least €100 to your account)

History of operations from Envestios website

Bad things? Well, we found the account information, known as history of operations, less useful and hope that a more advanced filtering function will be added in the future.

What Do Others Say?

There are only 16 reviews on Trustpilot, all positive and basically impressed with the high returns.

Envestio on TrustPilot

Pros – What We Like

  • Sufficient transparency of borrowers
  • Low minimum amount for investment
  • You can see available projects without creating an account
  • Extremely generous referral program

Cons – What We Don’t Like

  • Low flow of new projects
  • Manual investments only (UPDATE: Autoinvest introduced July, 2019)
  • Account filtering options missing

Summary

Founded
2017
Users
2 787 (December 2018)
Total fundings
>€7M (December 2018)
Country
Harjumaa, Estonia
Company annual reports
No*
Company owner info
No*
Investing in:
Europe (mainly the Baltic states)
Currency
Euro, Bitcoin
Type of loans
Business loans
Individual borrower info
Yes
Individual borrower grading
No
Risk grading
No
Buy-back guarantee
Yes (penalty fee)
Investment fees
No
Withdrawal fees
No (unless €5 or less)
SEPA Bank transfers
Yes
Primary market
Yes
Secondary market
No
Referral Program
Yes
Auto-invest tool
Yes (Since July 2019)

Rated by P2P Investments:

Ease of website functions
Very good
Ease of sign-up process
Very good
Ease of money transfers
Very good
Loan availability
Poor

Current Stake by P2P-Investments.org Team:

Initial Investment
€1100
Current Stake (Dec 2018)
€1122
Return (Annual)
n/a

Footnote: */ information not expected


Disclaimer: links to Envestio are referral links. Read about the referral program above.


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