Category Archives: News

Envestio peer-to-peer crowdinvesting platform overview

By News, Peer-to-Peer Lending, Real estate, Uncategorized, , , , , , , , , , , ,

Envestio logo

 

If you invest for the first time at Envestio don’t forget that you can get € 5 and a 0.5% cashback bonus for the investments made in the first nine months (270 days), more details HERE.

 

Started as a private investment fund, now Envestio is a modern crowdinvesting platform, which offers new ways of making investments in traditional and innovative investment projects. Envestio offers investors premium level investment opportunities, which were carefully chosen from many applications and thoroughly studied by Envestio analytical team. Entrepreneurs from different industries can apply for structured financing at Envestio platform and quickly receive it from the pool of registered private investors. Envestio takes care of the transparent full-cycled fundraising process, and ensures honest and unbiased information exchange between all participants of every investment project.
In the Age of Internet crowdfunding concept swiftly became popular as an alternative way of finding necessary financing for different projects. Unlike the traditional bank financing, crowdfunding is highly decentralized concept, where many investors are participating in each project with investments of small or moderate size. Crowdfunding is being used to finance project of different size and nature, such as commercial ventures, cultural and charity events, scientific research, development of new products, etc. In many cases, people, contributing to a crowdfunding project are not expecting a monetary return, especially in case of funding cultural or charity project, or the return is clearly symbolic, like “thank you” booklet or CD.

Since its establishment in 2014, Envestio has been investing funds in three industries: real estate, energy, cryptomining. A new step into other business area was made in the end of 2017. As of April 28, 2018 an innovative business of cryptocurrency mining constitutes the biggest portion of Envestio’s historical portfolio with 42% of total funds invested, followed by energy sector with 27%, and real estate projects with 27%. 3% were invested in other industries.
As of April 30, 2018 Envestio has successfully conducted and exited 20 investment projects, by fully receiving back principal and interest from our cooperation partners. The total sum of provided capital exceeds EUR 6,3M, while accumulated income from interest exceeds EUR 1,7M level.

What type of investments can be made?

– Crowdinvesting
Crowdinvesting is somewhat more specific than ordinary crowdfunding as it is related to funding business ventures, newly established or already existing companies with a straightforward purpose of earning interest on invested funds. Certain number of investors join a pool to complete the announced need of a project or company for specific type of funding. Profits or revenues are distributed to them according to previously approved schedule and proportionally to the share invested by each investor. Most crowdinvesting platforms allow their participants to start investing from very fairly small amounts, such as 50 or 100 EUR. Ordinary people received a great alternative to traditional bank deposits, which are noticeably less flexible and profitable than investments made through crowdfunding platforms.
– Bridge investing
Bridge financing is an interim financing option used by companies and other entities to solidify their short-term position until a long-term financing option can be arranged. Bridge financing normally comes from an investment bank or venture capital firm in the form of a loan or equity investment. This type of financing only occurs when a company’s runway is shorter than its future financing options, and it needs to remain solvent in order to obtain such long-term financing.

Who is eligible to invest?

All adults may become investors at Envestio. With the minimum investment amount of only 100 EUR, the idea behind Envestio is that everyone should be able to participate in different innovative and traditional investment projects.
It is free to register at Envestio and start investing using the platform.
Investors do not pay any fees for their investment at Envestio either. Therefore, the entire payment is used for the investment with no deductions.
In some specific cases there are one-off fees, associated with international bank transfers.

In what currencies can investments be made?

Investment accounts of Envestio participants are maintained in EUR, and money payouts to Envestio participants are done in EUR as well. Currently there is no blockchain/token technology used behind Envestio operations. Envestio does not convert invested funds into any kind of crypto-currency.
At the moment, Envestio is not accepting credit cards as a mean of adding funds to Envestio investment account. This possibility is still being analyzed in order to comply with AML legislation and be economically viable for Envestio business. Also, it is not possible to add funds by Western Union, crypto-currency, or any kind of electronic money transfer. Envestio portal accepts only safe bank transfers, done by Envestio participants from their private bank accounts.

Investing

You do not need much capital to invest successfully, you can also create your own diversified investment portfolio at Envestio step by step. Indeed, you can start with small investments from 100 EUR in single project and expand your portfolio over time, you can reinvest profits from successful investments in new projects, etc. As a result, your portfolio will become broadly diversified over time.
Investing at Envestio is straightforward: You choose one of the premium investment opportunities in which you want to invest and decide how much money to invest. The entire investment process takes place online and requires just a few minutes of your time. In return for your investment, you will receive fixed interest payments according to established schedule. The minimum investment is just 100 EUR.
Envestio has already pre-analysed all investment opportunities offered on the platform. In fact, only very small % of companies applying for a financing round on Envestio are accepted and presented further to Envestio participants.
Investments done through Envestio are not just interesting and high-profitable; those are also a way of supporting entrepreneurship and innovation in the region. Many company founders, discoverers, and visionaries often had troubles to find people among traditional investors, who shared their vision and recognized opportunities and potential of their business ideas.
Investors at Envestio are different from that. They share the ideas and see in reality that small things can eventually morph in something big and successful. Envestio participants help new ideas and economic progress, they support innovation and creation of jobs, making a positive contribution to society while earning high profits. It is the best example of win-win situation.
Envestio business model includes cooperation with investment project owners in the field of providing bridge financing/temporary equity replacement for their business projects. Funds, gathered via Envestio portal, constitute a certain share of total financing that is attracted to specific project, besides traditional funding from banks etc. Respectively, the weighted average cost of capital (WACC) for these projects is much lower than interest rate, payable to Envestio participants.
Making investments in premium investment projects at Envestio offers great opportunities, but these investments still are risky as any other. In the worst case, the entire investment, including principal and interest amount may be lost. At the same time, Envestio participants are under no obligation to continue funding the problematic project.
Envestio participants can minimize the risk by diversifying their investment portfolio. Professional investors often follow this strategy because it causes the risk to be distributed among several investments. In this way, successful investments with high return can balance out other less successful investments.
Envestio currently is offering investment projects with yearly interest rate from 12% up to 22%, depending on length and risk category of the project.
Financing of cryptomining hardware industry is considered most risky investment with the highest return, while real estate industry has the lowest risk category and moderate interest rates.
All interest payments already transferred to the Envestio participant’s investment account according to the project’s schedule remain in possession of the investor. Interest that is accrued, but not yet received, is written-off at the moment of confirming the buyback.

How does the buyback guarantee work?

Envestio buyback guarantee means that any Envestio participant at any moment can sell an investment from his or her investment portfolio back to Envestio and instantly receive invested money back his or her investment account. Since the funds, gathered via Envestio portal, constitute a certain share of total financing that is attracted to specific project, besides traditional funding from banks, Envestio is sufficiently capitalized to execute any buyback immediately.
Cost of performing buyback is calculated and shown to Envestio participant in Envestio personal area.
Please note that in some cases cost of buyback can account to substantial percentage of invested amount.

Upcoming platform improvements and new planned events

– Soon the webpage will be available in 6 languages, including Spanish, Italian, Estonian, and Russian besides already existing German and English
– Auto-invest function will be added within June-July 2018
– Secondary market for investments is going to be introduced after auto-invest is in place
– Mobile app for iOS and Android will appear within 1-1,5 months (July-August 2018)
– Around 10 new investment projects are being prepared for presentation at the platform

Grupeer peer-to-peer lending marketplace overview

By News, Peer-to-Peer Lending, Real estate, , , , , , ,

Grupeer logo

Grupeer platform is an electronic trading place that provides an opportunity to invest your free funds in secured loans. The services offered by the Platform are the servicing of claim right acquisition deals, i.e. the Platform brings together two independent participants of the deal – the  seller of the claim rights (credit company or investment company) and their buyer.

Grupeer Platform operates in the jurisdiction of the Republic of Latvia.

In Latvia, no unified normative regulation of mutual loans or financing with a pool is developed, therefore the services of the Platform are not subject to control of a single normative act, but are subject to a set of laws and regulations of the Republic of Latvia and directives of the European Union.

The Civil Law of the Republic of Latvia does not prohibit the holder of a debt claim from selling a part of it to another person. Moreover, the holder of the debt claim has the right not only to sell the entire debt claim in the whole, but also to assign/sell a part of it.

The Platform does not carry out activities falling under the definition of a credit institution or payment system in terms of Latvian and European legislation.

Who is eligible to invest?

Both private investors and legal entities that wish to receive passive income from their investments will be able to achieve annual profits of up to 15%.

In accordance with AML (Anti Money Laundering) legal requirements Grupeer accept money transfers from accounts opened with licensed credit institutions in the countries of the European Economic Area (all EU Member States, Norway, Iceland and Liechtenstein), as well as Switzerland. Accordingly, citizens / residents of these countries can register and make investments through the Grupeer Platform. In order to register and close deals, you need to be an adult capable person with a bank account.

The credit company, which issued a certain loan, remains interested in repayment and payment schedule compliance because this organization is the holder of the main debt claim.

Each registered Platform user can see all the information on a particular loan: the amount and purpose of the loan, the availability of collateral, the maturity date and the payment schedule. You independently analyze the information and decide how to direct your capital investment.

For example, you can repurchase the whole loan from the chosen creditor or only a certain part of it. All the time while payments on this loan are received the investor receives his profit, which is proportional to his investment share. At the same time, you can distribute your capital between several credit organizations – to invest in various types of loans, in different countries and for different borrowers.

In what currencies can investments be made?

The Platform makes settlements in euros (EUR). If the base currency of your current account is another currency, then before making a payment, you need to convert it into euro. In case of receiving funds in another currency, the Platform is entitled to return such a payment, retaining the commission in accordance with the bank’s tariffs, or convert them into euros at the current exchange rate of its bank.

How can funds be transfered?

The only possible means of payment at the moment is bank transfer. This is due to AML (Anti Money Laundering) legislation requirements. Grupeer accept money transfers from accounts opened with licensed credit institutions of the countries of the European Economic Area (all EU Member States, Norway, Iceland and Liechtenstein), as well as Switzerland. For security purposes, withdrawal of funds is possible only to a confirmed bank account, i.e. the account which you transferred funds from to Platform bank account and which your user identification number is associated with.

Investing

Grupeer Platform provides an opportunity to invest in loans issued by credit market professionals – credit institutions and investment funds. For all loans, the borrower’s solvency has been assessed, and appropriate scoring and compliance procedures have been carried out.

A Platform user acquires a claim right to the borrower, thereby becoming a joint claim right holder. The credit company by means of such deals refinances a part of its loan portfolio, getting resources for further development.

The credit institution continues to administrate the loan, including receiving borrower’s payments, while paying to the investors their joint share in accordance with the amount of their claim right the borrower they acquired.

On the Platform two types of loans are offered: loans issued by credit institutions to individuals, and loans issued to enterprises. The loans, related to development projects, issued to companies specializing in real estate development projects, stand as a separate category. In all cases, despite the sale of part of the claim right (the so-called “investment in a loan”), the credit company remains the holder of the main debt claim, thus it is interested in following the payment schedule and repaying the loan by the borrower.

For each loan offered on the Platform, specific information is provided, including the purpose and amount of the loan, maturity date, type of payment schedule and availability of collateral. The user independently evaluates and decides which loan to invest in.

Investments in development objects offered by Grupeer Platform are also executed through already issued loans, by means of acquiring a claim right, and from legal point of view they do not differ from investing in other loans. A classic example is the situation when a loan issued to developer for acquiring a land plot (bringing communications, developing a technical project, etc.) is refinanced in this manner. In practice, these loans have the nature of interim financing (so-called bridge loans), with a 1-2-year term – usually this period is required to complete the “zero cycle” of construction, after which the object, having at this stage a much higher market value, is refinanced by the bank and partly – by real estate buyers through pre-sales in case of a residential project. Such a model is typical for many EU countries, for example, Germany.

To begin work on the Platform, you need to transfer an amount which is not less than the minimum investment amount (10 euros).

At the moment, the limit of incoming payments from a registered Grupeer user to Platform bank account is 50,000 euros per month. If you wish to invest a larger amount, you will need to provide the bank with additional information.

 

 

Mintos p2p lending marketplace named Most Influential Startup at Spanish Fintech Awards 2018

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Mintos logo

Latvian startup Mintos was named “Most Influential Startup” at the Spanish Fintech Awards 2018. The prize was awarded during the third annual Fintech Unconference, organised by Finnovating business strategy and investment consulting. Over 6,300 votes were registered for the award, with Mintos winning almost half of the votes.

The Fintech Unconference gathered the 100 most important CEOs and founders in the sector, 13 Presidents of Latin American Fintech Associations and representatives from financial supervisors looking for synergy and meetings with other industry players. Three other awards were also handed out with Goin winning “Most Innovative”, Revolut winning “Best Executed Business Model” and EthicHub winning “Startup with Most Social Impact”.

Mintos CEO and Co-Founder Martins Sulte: “We are so proud to win this award, which proves we have truly won the confidence of the public and our investors. Last year was an especially successful year for us, and such awards based on public support show that we are moving in the right direction.”

In more than three years since its establishment, Mintos has exceeded EUR 720 million in cumulative investments by investors and the company expects the amount of loans funded to reach EUR 1 billion by the end of the year.

The number of investors using the platform has reached 61 thousand as of May 2018 and the company expects to reach 100 thousand investors by the end of the year.

Alfakredyt has launched on Mintos p2p lending marketplace and offers investment opportunities from Poland

By News, Peer-to-Peer Lending, , , , , , ,

Mintos logo

There are now more investment opportunities in Euro (EUR) and Polish zloty (PLN) on Mintos! Alfakredyt has just launched on the marketplace and offers you the opportunity to invest in its short-term Poland-issued loans and earn net annual returns of up to 11%.

Alfakredyt was established in 2013 in Poland and since its inception around 150 000 loans have been disbursed worth EUR 55.5 million. The company offers loans up to PLN 4 000 (around EUR 900) and it prides itself on its fast service – borrowers can receive funds in their account within 15 minutes once their application has been accepted. The company’s fast product and high-quality customer service have attracted more than 43 500 customers since its inception. 89% of the company’s currently active borrowers are repeat borrowers.

“We are pleased to join Mintos because it has a vast investor database, impeccable reputation and transparent methods of cooperation. We believe this will help us to increase the volume of disbursed loans and better serve our borrowers, whilst also offer investors on Mintos the opportunity to invest in loans listed in PLN and diversify their loan portfolios,” says Aleksejs Gromovs, Member of the Board at Alfakredyt.

On Mintos, the average Poland-issued loan from Alfakredyt available for investment is around EUR 400 and PLN 1 800 with a maturity of up to 30 days. You can expect net annual returns of up to 11% for all of Alfakredyt’s loans. All loans from the company will come with the buyback guarantee, and additionally, it will maintain 10% skin in the game to ensure its interests are aligned with those of investors.

Alfakredyt has an effective CRM system which has allowed the company to make nearly 80% of the business completely automated, and other processes semi-automated. This means there is less room for mistakes and allows it to run efficiently and cost-effectively. The company has also developed an automated scoring system, which is based on several factors – databases, in-depth automatic analysis based on historical data (similar to Big data) and personal experience of management. All of this combined means borrowers can get access to funds incredibly quickly and allows Alfakredyt to make the best decision when approving a loan.

As of December 31, 2017, Alfakredyt had a net profit of almost EUR 188 000 and a net revenue of more than EUR 3.1 million. Currently, the company has a net loan portfolio of EUR 4.14 million.

The first loan originator from Mexico has launched on Mintos p2p lending marketplace

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Mintos logo

The Mintos peer-to-peer lending marketplace is continuing to expand rapidly and they launch the first loan originator from Mexico offering loans for investment in Mexican peso (MXN). Credilikeme is one of the most innovative loan originators in Mexico, offering personal loans to Mexican citizens online and through its immersive mobile app which uses gamification features. The company offers investors the chance to invest in its personal loans from Mexico listed in MXN with expected net annual returns of 16%.

Credilikeme was established in 2012 and has issued more than 35 000 loans since then. The company is completely online and issues loans through its website and mobile app. Credilikeme prides itself on its unique business model and aims to provide a lifestyle-like experience with its mobile app.

“Partnerships between fintech companies is all about creating value for the industry. Mintos and Credilikeme are both important parts of the credit distribution value chain. Our partnership is all about liberating loan distribution and underwriting in Mexico, so we can give access to our borrowers and have a positive impact on their lives,” said Jorge Enriquez, Co-founder and CEO of Credilikeme.

Mexico-issued loans on Mintos from Credilikeme range from around MXN 3 700 to 19 000. The repayment period ranges from one to seven months and borrowers repay their loans in fortnightly instalments. You can expect a yearly net return of up to 16%.

The company will maintain 20% of each loan placed on Mintos on its balance sheet to keep its skin in the game, as well as only offer loans from repeat borrowers who have proven to be reliable in meeting their payment deadlines on the marketplace. All loans from Credilikeme come with a buyback guarantee, so loans that may become delinquent after 60 days or more will be bought back by the company.

The typical borrower of Credilikeme is a Mexican citizen aged between 21 and 45. They usually take out a loan for emergency expenses or working capital for a business.

As of February 2018, the company has distributed MXN 100 million (around EUR 4.5 million) worth of loans since its inception. In the past year, it had a revenue of MXN 11 million (around EUR 493 000). The company had an outstanding net loan portfolio of MXN 4.8 million (EUR 215 000) as of January 2018. Credilikeme is backed by well-known companies as investors, including Grupo Kaluz, a large banking and industrial group with operations in Mexico and Credito Real, one of Mexico’s largest offline payroll lenders.

According to the Americas Alternative Finance Industry Report, Mexico accounted for the highest total alternative finance market volume in Latin America and the Caribbean in 2016 (USD 114.2 million). Mexico was the third most active country in this region, following Chile and Brazil and has an annual growth rate of 730%. Marketplace and P2P Business Lending was the largest section of the alternative finance industry in Mexico.

The Mogo cashback campaign on Mintos p2p lending marketplace has been extended until June

By News, Peer-to-Peer Lending, , , ,

Mintos logo

Mogo is yet again extending its cashback campaign on Mintos peer-to-peer lending marketplace! Now, until June 16, 2018, you can earn a cashback of up to 5% if you invest in its loans with a maturity of one year or more.

You will get a cashback of:

– 1% for investing in Mogo loans with a maturity of 12 to 23 months;

– 2% for investing in Mogo loans with a maturity of 24 to 35 months;

– 3% for investing in Mogo loans with a maturity of 36 to 47 months;

– 4% for investing in Mogo loans with a maturity of 48 to 59 months;

– 5% for investing in Mogo loans with a maturity of 60 months or more.

To be eligible for the cashback campaign, make sure you enrol in the campaign first before you make your investments.

Only investments made on the Mintos primary market qualify.

 

For other bonuses visit our Cash-back & Bonuses page.

Russian lender Dozarplati has joined Mintos p2p lending marketplace

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Mintos logo

Mintos has launched a new loan originator from Russia! Dozarplati is one of the largest loan originators in the North-West region of Russia and investors now have the opportunity to invest in its short-term and instalment loans listed in Euro (EUR) and Russian rubles (RUB).

Dozarplati was established in 2011 in Russia and it has more than 100 offices across 14 cities in the country. The company aims to fill the gap between paydays for its customers by offering short-term loans. Dozarplati’s main goal is flexibility for its customers, that’s why it offers its services through its many branches, mobile app and also allows borrowers to take out a loan 24/7 online and on holidays. Dozarplati issues loans to borrowers above the age of 18 and they can receive the funds within 15 minutes. Since its inception, the total loans originated for Dozarplati has reached USD 30 million. The company’s net loan portfolio is USD 4 million, and it has sustained an impressive 48% equity ratio.

The company is included in the State Register of Microfinance Organisations of the Central Bank of Russia and all of its activities are regulated by the Central Bank. All loans issued by the company comply with the laws of the Russian Federation.

The average Russia-issued loan from Dozarplati is EUR 200 with a maturity of up to 12 months. You can expect an annual net return of up to 11% for its loans listed in EUR and 17.5% for its RUB loans. In the future, Dozarplati also plans to increase its offering on Mintos and place its business loans for investment.

All loans from Dozarplati are secured with a buyback guarantee and will be repurchased if the loan is delinquent for 60 days or more. In addition, to ensure the interests of the loan originator are aligned with the investors, the company will maintain 10% skin in the game.

Mintos has reached profitability in 2017 – Projections for 2018

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Mintos logo

After three years since the launch, Mintos has turned an annual profit for the first time. In 2017, Mintos revenue increased more than four-fold to over EUR 2.1 million and net profit was EUR 196 000.

During 2017, Mintos experienced significant growth, making it the peer-to-peer lending market leader for continental Europe with a 38% market share according to AltFi Data. Since their establishment, Mintos have exceeded EUR 660 million in cumulative investments by investors and they expect the amount of loans funded to reach EUR 1 billion by the end of the year.

“Last year was a strong year for us and we established ourselves as a leading player internationally. We are very pleased to see that our business model is working and that we have reached profitability in only three years after launch, which these days isn’t that typical for startups,” says CEO and Co-founder of Mintos, Martins Sulte.

In 2017, Mintos made considerable investments in technology, people and the marketplace, making their service even more convenient for investors on Mintos. Last year they launched a currency exchange featuring transparent exchange rates and fair fees, which allows investors to exchange money at a lower cost than through banks. As a result of this investment in growth, the number of investors on Mintos also grew rapidly. As of May 2018, 58 000 investors had joined the marketplace and we expect to reach 100 000 investors by the end of the year.

Currently, Mintos has three offices employing 50 people in Riga, Warsaw and Mexico City, with offices shortly opening in Brazil, Russia and South East Asia. By the end of the year, they plan to double the number of their employees.

“… for us at the moment growth is more important than becoming a profitable business. With the proven success of our business model, we will continue to invest in technology and product and double our headcount by the end of the year. That will allow us to double down on our mission to enable the free and efficient movement of capital around the world with the help of technology,” says CEO and Co-founder of Mintos, Martins Sulte.

Mintos strategy is growth at an ambitious, but steady pace – thus ensuring their sustainable development. According to projections in 2018, the marketplace turnover will increase by 2 to 3 times. In 2018, they will focus on growing both sides of the marketplace by increasing investor demand, as well as loan supply from current and new locations by expanding the investment opportunities on the marketplace in Africa, Latin America, and Southeast Asia.

There are now more investment opportunities from Moldova on Mintos p2p marketplace

By News, Peer-to-Peer Lending, , , , , , ,

Mintos logo

The Mintos marketplace just got bigger as IuteCredit Group now offers personal loans for investment in Moldova. This is in addition to IuteCredit personal loans issued in Albania already on the marketplace.

IuteCredit Group was founded in 2008 and operates in Moldova, Albania, Macedonia and Kosovo. The Group has a loan portfolio of EUR 20 million and has helped more than 170 000 customers. It aims to be the fastest and most efficient personal loan provider in the region.

“IuteCredit is a fast growing company and we appreciate the speed, flexibility and diversification in our funding. Investors on Mintos will allow IuteCredit Moldova to be more dynamic and disburse loans quicker and in greater volumes, which will allow the company to continue growing. We really appreciate Mintos as a marketplace which brings together the interests of different players of the market: investors, lenders and customers,” Stanislav Tuzlucov, CEO of IuteCredit Moldova.

The average Moldova-issued loan on Mintos from IuteCredit will be EUR 400 with a repayment period of 13 months. The expected return for investors will be up to 12%.

To align its interests with those of the investors, IuteCredit will retain 10% of each loan placed on Mintos on its balance sheet. All Moldova-issued loans from IuteCredit will come with a buyback guarantee and IuteCredit Group will undertake the obligations of repurchasing delinquent loans.

IuteCredit Group started its operations in Moldova in 2008. It is currently one of the alternative finance market leaders in the country. Since its inception, more than 200 000 loans have been issued in Moldova worth more than EUR 60 million. The typical borrower for IuteCredit Moldova is between 18 to 68 years old and borrows an average amount of EUR 400 for personal needs.

The group has been profitable since 2010. Currently, IuteCredit Moldova has 41 000 customers. The average maturity of loans is 13 months, and the annual percentage rate (APR) is 74%.

IuteCredit joined Mintos in June 2017 offering to invest in personal loans issued in Albania. To date, EUR 4 million has been financed through the marketplace.

To obtain exposure to IuteCredit Moldova loans, investors will be able to invest in loans issued by Mintos Finance to IuteCredit Moldova, where repayments depend on the borrower’s payments. Each loan issued by Mintos Finance to IuteCredit Moldova will be pegged to a respective loan issued by IuteCredit Moldova to the final borrower. Mintos Finance is a Mintos group company.

EstateGuru secures its first institutional credit line from a German bank

By News, Peer-to-Peer Lending, Real estate, , , ,

EstateGuru New Logo

EstateGuru, the European leading cross-border marketplace for short-term property loans has secured its first institutional credit line to be invested into loans originated in the Baltic market.

EstateGuru CEO and co-founder Marek Pärtel comments:

“Establishing the EstateGuru – Varengold cooperation is a proof of having found a mutually beneficial cooperation model between a traditional financial institution and a fintech company. This is a clear sign that building a diversified portfolio of property backed loans is a very appealing instrument for institutional investors. Our Pan-European retail investor base is still the main source of capital. However, establishing a cooperation with Varengold Bank and other institutional investors enables EstateGuru to grow faster by offering a wider variety of property backed loans to our entire investor base and raise the flexibility of loan terms to our borrowers. Without a doubt it is an important milestone for EstateGuru in moving closer to our goal of becoming the leading provider of flexible property backed finance solutions in Europe. We still see many SME-s and property developers who are struggling to get property backed finance from traditional financial institutions due to highly regulated and lengthy processes. EstateGuru has a clear vision and roadmap to bridge the gaps left open in the property finance industry.”

EststeGuru COO Mihkel Stamm adds:

“Establishing a cooperation with Varengold Bank is an unprecedented assurance of the quality of EstateGuru’s business processes. The due diligence process was thorough and lengthy, during which Varengold’s representatives were convinced of EstateGuru’s product, procedures and the people behind the business.“

Since the establishment in 2014 EstateGuru’s investor base of over 11 000 investors have funded in excess of €50 million of secured property loans in Estonia, Latvia, Lithuania, Finland and Spain with zero losses to investors to date. With the recent developments, including entering 2 new markets in 2018 Q1, establishing an institutional credit line and an ongoing equity round, the firm is setting goals for the next European markets, to establish its Pan-European reach in coming years.

About Varengold Bank AG

Varengold Bank AG is a German private bank, headquartered in Hamburg. Varengold is the leading provider of products and services to the Marketplace Lending Industry

Founded in 1995 as an asset management boutique seeking to offer individual and high-performing financial products for private and institutional clients. In 2013, Varengold was granted a commercial banking license when it transformed into to fully fledged commercial bank.

Varengold Bank AG is registered with the German Federal Financial Supervisory Authority (BaFin) under number 109 520 and has been listed at Deutsche Börse in Frankfurt since the 20th of March 2007 (ISIN DE0005479307, WKN 547930). Varengold Bank AG is also connected to the Compensatory Fund of German Banks (EdB).

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