Envestio has turned out to be a scam/fraud. There is no contact with the management and the website is closed down. the blogger Kristaps Mors reached out to me for a comment on the Envestio matter. My reply was:
First of all, I want to say that saying Envestio is shutdown is a bit of a rushed conclusion. Envestio has always been paying on-time and in full. Furthermore, you did confirm that the hostel project was legit. While their message sent the 20-01-2019 was very vague I don’t think we can call them “scammers” or shut down for now. There is no specific proof of scam or shutdown (I can turn my blog off in 1 minute).
I am not defending Envestio in any way. Matteo Quatrida from the Telegram group https://t.me/envestiodiscussion states that the 4 following: 1. Website Azure disappeared, 2. Blog disappeared, 3. Eugene’s LinkedIn profile is deleted, 4. [email protected] removed from Office 365. This are too many coincidences to not think it is a scam. However, I will deem it a scam when officials have said so. Whereas Keutzal was identified lending money to fake companies there are no real conclusions. However, the coincidences obviously make me pessimistic towards a return of Envestio.
With that being said P2P lending is a risky investment. Everyone should know that, and I think I have tried to highlight that through my blog. Therefore, I also think that people are overeating by losing their money, as you should only invest what you can afford to lose. While it sucks hard to lose money, that is a name of the game, especially in an industry that has little regulation.
To answer the questions:
- Any lessons learned?
- The overall transparency provided by the platforms has to be very evident. In the future platforms not stating loan originators will not be in my portfolio. High interest also involves high risk, but this was a given. I will preferably have loan agreements publicly available (like at Grupeer and Mintos). Personally I will properly use google maps (street view) to identify the physical location of the businesses or development projects. If the business or development project is legit, it should be no problem to find on google maps (street view). The google maps (street view) will be used to check if the signs have the name of the borrowing business and if the pictures provided by the platform is identical to what can be found on google maps.
- Any changes to the portfolio planned?
- Before all this panic, I started to withdraw money from fastinvest and Envestio. The Envestio withdrawal was initiated in the middle of January and I have not yet received the payment (cannot remember the date and cannot access envestio.com to check). Furthermore, I have withdrawn all my funds from Fastinvest. If you look back at my monthly updates, I have previously stated that the lack of loan originators transparency makes me uneasy. As a part of the new year, I was going to reevaluate my portfolio in P2P lending. One was to limit the obvious risk, such as the high-interest rates with little transparency from Envestio (lacking public shown loan agreements and public showing the borrowing company’s financials and actual existence.
Jonas @ ThePoorInvestor.eu”
I am not going to take down my review of the platform as I wish to be transparent in my reviews. Upon my initial review, I saw no immediate problems with Envestio (other than their very high returns, which equates to very high risk). Therefore you can read my review as before the website closed down.
I feel sorry for all the investors involved in this incident. Personally I lost a bit over €1.300 or about 21,2 percent of my investment portfolio and 12 of my net worth, at the time of the fraud.
If you wish to follow the discussion of Envestio, you can go to the telegram group provided in the link here: https://t.me/envestiodiscussion
I do not wish to shy away and delete all content based on Envestio. This is a part of the investment game when attending unregulated investment forms. This is also why so many say that P2P lending should be a very little part of your total portfolio.
The Original Review
The review of Envestio is 100% unbiased and based on my personal experience and findings. In the Envestio review, I will give my personal opinion of their service. In the Envestio review I will include the subjective aspects which I personally like, and the objective facts – like statistics.
Envestio is one of the highest yielding platforms on the European P2P lending market. Envestio has provided loans from 15% and up to 22%. My personal experience is high returns, no defaults and fair diversification in industries.
- Loan types: Business loans
- Loan terms: 0-24 months
- Interest rate: 15%-22%
- Auto-invest: Yes, easy to use
- Buyback guarantee: Yes
- Fees and costs: No fees
- Minimum investment: €1
- Currencies: EUR
- Secondary market: No
- Bonus: €5 and 0,5% extra interest in 270 days, when first deposit is at least €100
- Sign-up link: Envestio
What is Envestio?
In 2014 Envestio was founded as a private investment fund. Envestio then went public in 2017. Their vision is to provide you and me with top-quality projects which generate high returns.
Unlike many other p2p-lending platforms Envestio is distributes loans in production, energy, cryptocurrency mining and real estate development projects.
Envestio is in the high-end spectrum of p2p lending platforms in comparison to returns, when comparing to many other p2p lending sites. Among the projects i have invested in the interest rate varies from 15% to 19,3%. They are advertising of projects yielding 22%. Envestio has launched 8 projects per month from the start of 2019.
The investment opportunities are limited on Envestio. With an average of 8 projects a month there is not that many different loans. However, the loans are ranging from 40,000 euro and up to ~1,000,000 euro. However, the average loan is ~200,000 euro.
Getting Started on Envestio
After the usual registration investors can start investing in projects. Anyone over the age of 18 can investor through Envestio. You have the possibility to use your corporate entity if you are registered in the EEA member countries or Switzerland.
As an investor you can invest from only 1 euro. However, you are required to deposit at least 100 euro.
To withdraw funds (for whatever reason) you have to verify your account. This has to be done with both ID and proof of residency. The ID has to be a national ID, passport or driving license. The proof of residency can be tax returns, utility bills, bank statements etc.
Envestio has provided an loan calculator to see the expected outcome of investing on their platform. I have currently ~700 euro on my account. With a conservative ROI of 15% i will make 105 euro in profit over a year.
The loan list consists of all the unfunded, active and funded projects, respectively. There can only be invested in projects marked as unfunded. When investing in a loan you can invest from 1 euro and up. This is favorable if you are like me and do not have millions to invest.
In the picture an example of Envestio loan/project list is shown. The three picture sections show their individual attributes. To identify which loans you are interested in, you can make a brief overview by looking at the interest rates.
Envestio has an auto-invest feature, which can automate all investments. The auto-invest will invest for you, just like you would when investing manually. One of the key aspects of the auto investment tool is that you can customize it for your preferences.
Envestio has made the tool so you can chose what industry you want, what loan term, amount to invest per loan, interest rate boundaries and whether you want to invest in active loans from same loan originator.
It is possible to make multiple auto-investment rules. Doing this, you can customize the rate of return you are willing to take in one industry, where you might have a different rate of return for another industry.
The auto-invest tool is straight forward and does what it says.
When make a new rule, you should consider what returns you want in different industries. E.g. you want a higher return when investing in crypto mining loans, as they hold more risk that real estate.
Another thing you should consider, is how much you want to invest per loan. Currently, there is a minimum of €100 per loan.
The last thing you want to consider, is the loan term. If you care about the length of the loan term, you should make such a rule.
In previous sections you can read that Envestio is the distributor of loans. Envestio are the loan “originator” where you fund the contracts. Envestio is nice in the way that they due all the work, and you simple invest your money to grow. The due diligence can be executed properly however the borrowing company might not understand to run a profitable company. With a company not generating enough revenue to pay of debt you funds could of course be lost. But so could it on any other p2p-lending platform.
Envestio Buyback Guarantee
Envestio, like many others, provide a buyback guarantee. Normally projects are offered with a 5% penalty rate. This means, that for whatever reason you should decide to sell the loan you will receive the principle minus 5%. The buybacks are executed immediately, there is no waiting time. The buyback guarantee is NOT for defaulting borrowers. If the borrower defaults your money will still be lost. Hence, the buyback guarantee is used if you need your money transferred to your bank account. You can sell the investments at a 5% penalty rate.
As an investor on the Envestio platform you are not liable for anything other than the money invested in case of a default. This means that if a borrower can not pay their debt to Envestio, you will lose you money. However, you are not liable for any bad debt.
The secured debt means that the borrower has provided Envestio with an additional legal insurance, e.g. mortgage, mixed collateral, personal guarantee etc.
The subordinated debt status means that all the financial and legal information is provided. However, the borrower has not included any additional legal insurance, such as mentioned above.
How Does Envestio Work?
For the Borrower:
For the borrower the process of getting funds is rather simple. However, due diligence will of course be made to secure profitable investments.
- Register at Envestio (Envestio.com)
- Present the investment opportunity for the Envestio team. This is an online submission or an e-mail containing a full description of the project
- The Envestio team will contact submitter.
- Envestio will make an offer where submitter either accepts or decline – if accepting concluding a contract.
- Envestio will post crowdfunding campaign.
- Receive the funding and launch the project.
However, in order to be approved for funding, the borrower has to pass Envestio’s due diligence.
For the Investor:
When there are funds available on your Envestio account it can be invested to any project not yet funded. When projects are available for investment they will have a thorough description. Therefore you can do your own due diligence if not trusting Envestio’s due diligence. The transparency is helpful when trying to asses the risk of the projects.
The description contains an “investment opportunity” section containing the interest of the investor. This includes simple sentences describing the planned interest rate, which industry and sector and the buyback penalty rate. Under this section the project description is provided. This is a more specific description as to what the funds are going develop. Therefore, if Envestio has a project with recycles from computers. But for some reason you do not think that is a profitable business you can skip the project.
When a loan is funded you can view the statistics of the project. To me, this is not valuable to anything else than showing transparency from Envestio to its investors. If you have invested in any projects you can view the next payment dates in your dashboard. Here you can gain a holistic view of principle and interest payments.
The Team and Organization
Envestio is a company of four people. The CEO – Anton Kaletin seems very creditable due to being a member of the board in three companies (including Envestio). He has previous experience as a financial director and a tax consultant. Likewise their head of finance and investment and development adviser looks creditable. They have had CFO, consultant or other higher positioned jobs, where they are capable of handling big sums or money.
Despite the four people on their website there is not much information of their organization. The company is young considering their went to be a public firm in December 2017. However, looking at Envestios Trustpilot rating the investors are satisfied. Providing the returns which they have so far, it would be difficult to be unsatisfied as an investor. However, a few are complaining that Envestio does not provide a lot of loans. However, taking into consideration that Envestio is a newer platform of four people i would not worry about it.
Envestio is a still a young platform. However, they are progressing exponentially like many other crowd-sourcing sites. The following statistics are drawn from Envestio’s website in Marts 2019.
- 600,000+ euro paid in interest
- 18.78% in average interest rate
- 5103 registered investors
- 14,000,000 funds invested
In the picture above the statistics for 2018 is presented. The picture combined with the bullets above illustrates at which rate Envestio is growing currently. In just 4 months Envestio has funded almost double the amount that they have funded in whole 2018.
Fees and Costs
Envestio offers a free of charge investment opportunity. Besides withdrawing less than 5 euro and the 5% penalty ratio (if you make a buyback).
My Personal Envestio Experience
My experience with Envestio is so far pristine. I can nothing but recommend the platform. They have provided high returns with not one default. With a deposit of 1.134,29 euro i have earned 75,11 EUR (and 11,57 EUR in bonus). An XIRR of up to 21,9%. Because i signed up through an affiliate link i have made and extra 0.5% on all investments. Additional i got 5 euro as an signup bonus. The bonus will last for 270 days on all investments made.
|Month||Envestio income||Envestio portfolio value||XIRR|
As this is a review of Envestio, you can follow my income from Envestio at my monthly income updates.
The strategy is rather simple when investing through Envestio. Which ever investment comes when i have funds available i will invest in. The projects posted on Envestio will often be fully funded within hours. If you are quick enough the other investors will fully fund the project before you get to invest. So be ready. A good tip is to allow Envestio to sent you emails. They sent an email every time they post a new project on their platform.
If more than one project is available for investment, i select the project with secured debt. I weight my risk on the Envestio platform. Hence it is young and might take bigger risks to gain more investors.
Conclusion Of Envestio Review
Envestio is a simple platform with high transparency. A lot of pleasant information is available for you as an investor. While this is a highly profitable platform compared to other p2p-lending platforms remember they are young. Mitigate your risk – higher the return, the higher the risk.
With that said, i have no defaulted loans. I have received high returns. I encourage you to sign up through an affiliate link, as you will get 0.5% EXTRA on ALL investments made in 270 days. In other words you get free money, by investing here (Envestio)
If you have any questions to the Envestio review you are welcome to contact me. I will help you to the best of ability. Remember, i am not associated with Envestio hence the review is unbiased.
In you found my Envestio review helpful, it would mean a lot to me if you shared it.