After recent events, I believe Envestio is not safe. Actually, it looks like it’s a fraud.

Please read the “Is Envestio a scam?” section to learn more about this topic.

I have left the post as it was before, with a few minor updates.



In this review you will learn all about Envestio, one of the leading companies in the peer to peer lending European market.

I have been investing in Envestio for half a year in Envestio, and I have obtained exceptional results. Consequently, I have decided to jump in the deep and tell you all about this investment platform.

Envestio is an excellent crowdlending platform

Its high returns, its auto invest feature and the new projects published every week make Envestio one of my favorite peer to peer lending platforms.

Because of this it is one of the companies that is growing the most in my peer to peer lending portfolio.

If you are looking for an alternative to stocks and investment funds, I recommend you read the guide to invest in peer to peer lending.

Let’s start the analysis!


What is Envestio?

Envestio is a p2p platform that allows investors to get high returns investing in loans.

Peer to peer lending is an innovative financing method which allows companies to raise money for developing their projects, while investors can invest in diverse businesses and get great returns.

Peer to peer lending is not the same as real estate crowdfunding, as you can read in the guide to invest in p2p lending.

Envestio was founded in Estonia in 2017, so it has been operating for 3 years.

On the website we see there are 14,500 registered investors in Envestio, and loans worth 34 million euros have been financed.

It doesn’t have the volume of other platforms like Mintos, but it’s growing fast.

The average return is 18.4%. Not bad, huh?


Advantages and disadvantages of Envestio

 
Advantages and disadvantages of investing in Envestio

The advantages of investing in Envestio are:

  • High returns: your projects can give up to 22% per annum
  • There are new projects published every month
  • Buyback guarantee on all secured loans
  • Short-term loans: typically 9 to 12 months
  • Easy-to-use platform
  • Interest paid always on time: no delays
  • Big growth: more and more investors and companies
  • No minimum investment required: you can invest from 1 euro

Above all, a great advantage of Envestio are the interest rates, almost all loans offer a return above 18%.

It’s one of the most profitable platforms I have found.

Another great advantage is it does not require a minimum investment of 100 euros as in other p2p platforms. Here you can invest from 1 euro!

On the other hand the disadvantages are:

  • No long track record: it has been operating for two and a half years
  • No secondary market
  • There is not much information about the borrower, the company that receives the loan

Since Envestio is a young company it does not have a long history. That means we don’t know how it’s going to react when there is an economy downturn.

P2p lending is a recent business model, most platforms are just 2-3 years old.


Autoinvest

One of the great advantages of investing in Envestio is its auto invest feature.

Autoinvest is the most convenient way to invest, since you don’t need to invest manually. Consequently, you don’t have to keep an eye on new loans coming out.

You just need to configure auto invest, activate it and voila! Envestio will invest in all loans that match your conditions, as long as you have money available to invest.

Below you can find my auto invest settings:

Setting up the self-investment in Envestio

As you can see Envestio allows you to select the interest rate you want to get, the duration of the loan, the amount to invest, and if you want to invest in multiple loans from the same originator.

Auto invest tool is very useful, it makes your life very easy!

When you start investing in Envestio it may seem to you that there are few projects, since sometimes there are no active projects.

All you have to do is activate auto invest and wait a few days for a new project to come out 🙂


Secondary market

 
It's important to know the type of peer to peer lending loan we are investing in

The secondary market is a tool offered by some p2p lending platforms. This tool gives investors the possibility to sell the loans they have invested in to other investors.

As a result, this provides two great advantages:

  • High liquidity: Investors can get their money back if they need it
  • More investment opportunities: Investors have more loans available to invest

Envestio does not have a secondary market, but it offers a buyback guarantee that provides liquidity to investors

Investors can sell their loans to Envestio at any time, thus getting their money back. This applies to all loans offered on Envestio platform.

Envestio charges a 5% commission for the repurchase of the loan. It’s important to keep that in mind when you’re selling your loan.


Risks of investing in Envestio

Investing in peer to peer lending carry risk, so it’s important to understand them. When you invest your money in a loan, there is a risk of not getting your capital back.

This can happen because the borrower is unable to repay the money, so the loan defaults.

In order to reduce the risk of not getting your money back it is important to always invest in secured loans. If there is a default, the collateral used as security will be sold to recover the borrowed money.

Peer to peer lending loans should always be backed by a collateral

The value of this security is always higher than the value of the loan. This is known as Loan to Value ratio.

When you invest in secured loans, you’re reducing the risk of not getting your money back.

In Envestio most loans are secured loans. If the loan financing type is “secured debt” it means it is a secured loan.

You can also configure it in auto invest by activating the “invest in secured loans only” option.


Envestio buyback

In order to reduce the level of risk when you invest in peer to peer lending, you should look for loans where the originator offers buyback guarantee.

Buyback implies that if the borrower cannot repay the debt, the loan originator will refund the money to investors and negotiate with the borrower to recover the money.

Therefore, his gives extra security to investors. If the borrower does not pay the money, the loan originator will do so.

Envestio offers buyback for all secured loans that default.

In case of default, Envestio will refund 80% of the money. For the remaining 20%, the investor has two options:

  • Immediately recover 10% and give up the other 10%
  • Wait for the debt recovery process to progress to recover the remaining 20%

Due to this, at least 90% of the investment is secured by Envestio buyback. You can read more information on Envestio blog.


How to start investing in Envestio

Opening an envestio account is very easy. Just follow these steps:

  1. Sign up through this link (you will get a bonus of 5 euros + 0.5% of your investments for 270 days!)
  2. Enter your physical address and email
  3. Enter your bank account, which will be used to deposit and withdraw money
  4. Upload your ID or passport
  5. Wait patiently for Envestio to review the information you have sent
  6. Make your first bank transfer, get your bonus (by registering in Envestio with the link above) and start investing

Another great advantage of Envestio is that the minimum investment is one euro. I think we all have a euro to start investing in Envestio 🙂

It is important to highlight that all loans are in euros.

On the platform you can check which loans are active. This means you can invest in them.

On the platform you can see all the loans that are active

At first glance you can see the main information of the loans, such as its interest rate, the term, the industry, and the funding target.

If you want to know more, click on “learn more” and it will take you to the loan page.

Envestio gives a lot of information about each loan

For instance, on the picture above we can see that it is a project for the company TogetherData, for the development of software based on artificial intelligence.

This an example of a secured loan with a 20% return.

On below image you can observe the payment schedule, with an example of the money you would receive if you invest 1000 euros.

Finally you have the “Invest in this project” button to invest in it.


Is Envestio safe?

 
Investing in crowdlending has its risks.

In any investment there is a risk of losing a portion of your capital. If anyone tells you otherwise, they’re lying to you 🙂

The importance lies in knowing the risks, and working to reduce them.

That’s why I apply a check list to all the p2p platforms i invest on:

  1. The company appears on the official company register of the country it is based on
  2. I’ve been able to withdraw money without any problem
  3. I have not found any mention of scam on any website (reading reviews on Trustpilot carefully)
  4. Financial report is transparent and makes sense
  5. The platform has a support team that answers questions quickly and coherently
  6. There is information about the borrowers
  7. At least one borrower has personally confirmed to me the existence of its loan with Envestio
  8. Envestio has attended the P2P 2019 Conference in Riga and/or belongs to the ECN (European Crowdfunding Network)

I just have pending to confirm with one borrower the existence of his loan with Envestio. I am glad to tell you that Envestio has passed all the other security checks.

Due to that, in my opinion Envestio is safe.

After recent events, I believe Envestio is not safe. Actually, it looks like it’s a fraud. Please read on to learn more about it.


Is Envestio a scam?

In the last days there have been some developments that are keeping the p2p community breathless:

  • It looks like no investor has received withdrawals performed after 13/01
  • Envestio website was shutdown on 21/01 without sending any official communication to the investors
  • As of today (22/01) there has been no communication from Envestio, and the website is still down

As you can see, situation is very concerning. It is all very recent, so we need to wait to see how everything unfolds.

I hope we will hear some good news soon, but it is looking very unlikely…


Envestio review

When searching for information about Envestio, all the reviews I have found have been positive.

As I mentioned above, I have not found any mention of scam on internet. If you look “Envestio scam” up on google you will not find anything suspicious.

All the investors I’ve spoken to are very happy with Envestio and the profits they have made.

After my first few months investing in the platform, I couldn’t be more satisfied with the results.

Evolution of the profitability of my investments in Envestio in 2019

I’m getting a return of more than 1% every month. In December I got 1.4%!

After recent events, I believe Envestio is not safe. Actually, it looks like it’s a fraud. Please take a look at the previous section in order to learn more about it.


Bonus for registering in Envestio

If you register using my link you will get a bonus of 5 euros when you make your first deposit (the deposit must be bigger than 100 euros).

You will also get a 0.5% bonus on all investments during your first 270 days.

If you want to start earning money with Envestio sign up here.

If you register directly on Envestio website without using my link you will not get any bonus 🙂


More post about peer to peer lending

If you want to learn more about peer to peer lending and the p2p platforms to invest in, take a look at below posts:


Disclaimer

This analysis is based entirely on my personal opinion and my experience.

COMPÁRTELO!
Categories: Crowdlending

3 Comments

John · 17 January, 2020 at 17:25

A lot of uncertainty about Envestio right now. It could be scam. Do NOT invest there.

    Gonzalo@Tofinancialfreedom.co · 18 January, 2020 at 07:35

    Hi John,
    Glad to have you on my blog. I believe there is a general uncertainty in the p2p community after the Kuetzal case, but I do not believe Envestio is a scam.
    There were many red flags in Kuetzal that had not happened in Envestio. The main “unusual” thing that was detected in Envestio was that the COO had changed in December, and in order to calm investors they have hired back the COO.
    Envestio sent an email to explain everything, stating the following:

    Envestio reacts to panic on Baltic crowdfunding market, caused by collapse of Estonian platform Kuetzal, by returning its former COO Evgeniy Kukin back on his position.
    The end of 2019 on Baltic crowdfunding market has been quite challenging for all players, as failure of Kuetzal platform caused a crisis of trust and provoked many investors to withdraw their funds from the market.

    Envestio also faced a number of pre-mature investment buybacks and subsequent withdrawal of funds, which were accomplished without any delay and in full amount thanks to Envestio’s reserve fund, which in present circumstances varies from EUR 500 000 up to EUR 800 000.

    Furthermore, in order to minimize the room for negative rumors and speculations, caused by changes in the management board of Envestio, which took place almost simultaneously with similar changes in Kuetzal (due to absolutely different reasons, though – Envestio was purchased by a solid European investor) the new owner of Envestio, Mr. Arkadi Ganzin has reached the agreement with former COO of Mr. Envestio Evgeniy Kukin to return to this position starting from January 15, 2020.

    At the same time, Mr. Eduard Ritsmann, who was appointed to the position of COO and Development Director right after the sale of the platform in December 2019, will continue working for Envestio as the Head of Sales.

    Hence, no parallels should be drawn between Envestio and Kuetzal cases, as Envestio retains onboard the whole team of professionals, with which it became one of the leaders of the Baltic crowdinvesting market, earned trust of almost 15 000 registered investors, and kept perfect payment discipline as well as is in command of solid financial reserves to ensure uninterrupted and trustworthy operational activity.

    I believe in Envestio, so I think this is a good platform to invest in.

    Gonzalo@Tofinancialfreedom.co · 25 January, 2020 at 08:45

    After several days, it looks like you were right John.
    Envestio website has been shut down, the company is not making any official communication. This look like a fraud.

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