Crowdestate Review
Crowdestate Statistics
- Business name: Crowdestate
- Legal name: Crowdestate AS
- Jurisdiction: Estonia
- Type: Crowdfunding
-
Average score:
4 / 5
15.2 %
6.2
65%
- Total invested: €106.5M
- Buyback guarantee: No
- Secondary market: Yes
- Licensed: Yes
Crowdestate Description
General Information
Crowdestate, an Estonian crowdfunding platform was founded in 2014. The platform is a regulated payment institution licensed from the Estonian Financial Supervision Authority. Crowdestate three loan types: business, mortgage and development loans. To date, more than EUR 106 million has been invested through the platform in different projects in several countries such as in Estonia, Latvia and Italy.
Board & Team
Crowdestate shares the information about its team or key people as mentioned on their web page. The crowdestate team is coming from academic backgrounds related to the industry such as the CEO, Loit Linnupõld who has a master's degree in International Finance. Also, the team has professional experience in the financial industry, for instance, the CEO has worked in the banking and private equity sectors. Other team members have related previous experiences related to their positions such as business development.
Financial Analysis
The platform publishes its statistical figures and annual reports. The latest annual report is available. It also shares its historical loan books with limited information. Analyzing the financial performance of Crowdestate, the platform’s quick ratio was significantly high by 2020, which shows that Crowdestate had sufficient current assets to meet its short obligations. The platform is more relied on and financed by equity rather than debt in 2019, however, in 2020 the platform started to be financed by debt too. It is cheaper to finance by debt, especially for financial institutions as they are dealing with debts-clients’ money. However, the return on assets is below 1, which means there is room for improvement and using the assets more efficiently.
Platform’s Score and Uniqueness
Crowdestate offers features such as autoinvest and secondary market, and withdrawal option, which make investing much easier for investors. The platform does not have a buyback guarantee, however, some projects have personal guarantees and there are collateral to the payment of loans. There were cases of the projects going bankrupt, and the loans are partially covered. The investments can be diversified and the promised return is around 15%, which is not justified on their web page. Investing through Crowdestate is free of charge.
Conclusion
Crowdestate is a crowdfunding platform with the promised return of 15%, which is above the market average return, and with the option to diversify the investments. The platform offers necessary features such as autoinvest and secondary market, but there is no buyback guarantee. However, there is a personal guarantee for some loans, and collateral to the payment of loans. There is information about the key team members on their web page, the team is made of professionals with experience in the financial sector. The platform publishes its annual reports, historical loan books with limited information. The latest annual report is available that shows that the platform had sufficient current assets to meet its short term obligation, and it was more equity financed. Crowdestate had some cases of the projects going bankrupt, and the loans were partially covered.
