- Business name: Reinvest24
- Legal name: OÜ Reinvest24
- Jurisdiction: Estonia
- Type: Crowdfunding
- Total invested: €24.3M
- Buyback guarantee: No
- Secondary market: Yes
- Licensed: In progress
Reinvest24 is an Estonian crowdfunding platform that was founded in 2017. The platform does not have an Investment Brokerage/ Crowdfunding licence. There are three types of loan that investors can invest through Reinvest24: real estate, development loans and equity crowdfunding. There is a conflict of interest between the investment projects and platform’s owners as Reinvest24 only sells loans issued by subsidiaries. To date, more than EUR 7 million has been invested through the platform.
Board & Team
The platform provides information about its team and also seasoned professionals from Tina Kinnisvarabüroo which is a real estate agency. Seasoned professionals guide the Reinvest24 team in property projects and management. There is full information about the CEO Tanel Orro. Tanel Orro is an experienced professional who has finance academic background and also asset management professional experience.
There is only the annual report for 2019 available. However, the platform itself does not publish its annual reports on their web page. Looking at the financial position of Reinvest24, it can be said that the platform had liquidity problems in 2019 as the quick ratio was less than 1. In other words, Reinvest24’s quick ratio meant that the platform did not have enough current assets to meet its short term obligations. Debt to equity ratio shows that Reinvest24 is more reliant on debt rather than equity finance that is a common thing for financial institutions. Return on asset ratio is very low meaning the platform is not using its assets efficiently. Overall, comparing 2018 and 2019 financial figures, it can be said that the ratios worsened in 2019 such as liquidity problems.
Platform’s Score and Uniqueness
The platform does not offer buyback guarantee and personal guarantee to the payment of loans, however there is collateral to the payment of loans. There is investment diversification opportunity and the promised return is 14.8%. The promised return is above the market average return, but the return is justified on their web page. Reinvest does not share its annual reports, historical loan books and statistics, which are important to build trust and attract investors. The platform offers a secondary market and withdrawal option, but not autoinvest.
Reinvest24, an Estonian crowdfunding platform with promised return of 14.8%, allows the investors to diversify their investment by offering three loan types. The platform does not have an Investment Brokerage/ Crowdfunding licence and there is conflict of interest between the platform’s owners and investment projects. Reinvest24 does not publish its annual reports-even there is no annual report for 2020- and historical loan books. The information about the team is available on the platform’s web page as well. Talking about the financial health of Reinvest24, it can be said that the platform has liquidity problems and the financial figures worsened in 2019 compared to 2018.