Gathering data

Crowdestor Review

Crowdestor Statistics

EE
  • Business name: Crowdestor
  • Legal name: OÜ Crowdestor
  • Jurisdiction: Estonia
  • Type: Crowdfunding
  • Average score:
    0 / 5
Promised annual return

20.6 %

Sneakypeer scoring

4.1

Transparency

65%

Secondary Info
  • Total invested: €51.1M
  • Buyback guarantee: No
  • Secondary market: Yes
  • Licensed: No
Loan Types
Business loans
Real estate loans
Specialized loans

Crowdestor Description

General Information

Crowdestor is an Estonian crowdfunding platform that was founded in 2017, and to date, more than EUR 51 million has been invested in different projects through the platform. Crowdestor offers three loan types/loan projects: business, real estate and specialized loans. The platform does not have an Investment Brokerage/ Crowdfunding licence.

Board & Team

The platform provides the names of board members and some employees on their web page with the links to their linkedIn profile. The owners are also mentioned there. The board members are experienced in the financial industry with academic background related to this industry.

Financial Analysis

Crowdestor publishes its annual reports, especially the annual reports for 2019 and 2020 are available on their web page. The annual reports are not audited, audited reports are more reliable. Looking at the financial figures-ratios, it can be analyzed that the platform’s quick ratio is higher than 1. So, it means that Crowdestor had sufficient current assets to finance its short term obligations. The debt to equity ratio is higher than 2, which is good. It shows the platform was reliant on debt rather than equity-more debt financed. However the return on assets is low, so there is room for improvement. Overall, the financial health of Crowdestor looks good and promising.

Platform’s Score and Uniqueness

The platform offers a secondary market for the investors, but not autoinvest. There is no buyback guarantee, however, there is collateral-depends on loan type. The investment can be diversified using different projects, and the promised return is more than 20% depending on projects, which is twice above average market return. Such a high return is not justified on the platform. The platform representatives and the company itself can not be found in the registered address, which can be a red flag. There is also conflict of interest between the investment projects and platform’s owners. The platform does not provide historical loan books, which could be useful in building trust and attracting more investors.

Conclusion

Crowdestor, a crowdfunding platform based in Estonia, offers twice the above-market average return without any justification. The platform provides a secondary market. The financial health of the platform is reasonable, such as having the ability to cover its short-term obligation with its current assets. Annual reports are available on the web page but not the historical loan books. Some potential red flags include suspicious persons in the owners/board involved in previous scams or bad reputation and not being found in the registered address.