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Crowdestor review 2019

Check out our Crowdestor review, and see if the platform is for you.

Review of Crowdestor

Risk/Reward

4/5
We find the return compared to the safety alright.

Beginner Friendly

4/5
The Crowdestor platform is beginner friendly.

Investor Protection

4/5
Crowdestor has made a fair amount of safety measures.

Return

4/5
Investors get a return of from 12% to over 30%.

We Like

  • No investment fees
  • High investment returns
  • Detailed loan descriptions
  • Multiple loan types

We Don’t Like

  • Lack of diversification options
  • Low quantity of loans available
  • Not possible to use auto invest
  • No buyback guarantee
  • No secondary market

Summary: Crowdestor is a fine candidate for a P2P lending platform within the real estate and business segment. Generally speaking, there is a very large return on the platform and the team behind has done its best to secure their investors. However, the platform lacks a bit in terms of diversification possibilities. But with returns in some cases up to 36%, we understand that people choose to use Crowdestor.

It’s completely free to use their platform

Last updated: August 13, 2019

Crowdestor review 2019 – Is the platform safe?

Having their first project in 2018, Crowdestor is still a quite new P2P lending platform. Therefore, we decided to look into how safe investing via Crowdestor really is. The result of our efforts turned into this Crowdestor review.

We strongly advise you to read this review if you have considered investing through the platform but have not yet decided. We will in this Crowdestor review a closer look at the security of their platform. Furthermore, we will also consider what purpose the platform best serves for you as an investor.

You are of course welcome to read the review from one end to the other, but if you are just looking for something specific, you can use the navigation below to get to a specific point in our Crowdestor review. However, as you read this review, we would like to point out that this is our own perception of the platform, and that the information should not be considered as financial advice.

Learn about the following in our Crowdestor review:

What is Crowdestor?

Crowdestor is a crowdfunding platform specializing in businesses. Their first project was launched in February 2018, and since then a myriad of projects have been funded on their platform.

On the platform, investors can invest in high yielding business, transport, real estate, and startup projects. There are zero investment fees on the platform, as the fees are paid by the borrowers. However, the borrowers can also benefit largely from the platform, as they can get funding for their projects. This gives them a better opportunity to lead their projects into real life.

Crowdestor’s headquarters are located in Riga, which is the capital of Latvia. From here, the daily operations take place. Behind the platform are some experienced gentlemen who have years of experience in raising capital. Thus, they have great knowledge of what it means to raise capital.

What rate of return can you expect?

At Crowdestor you typically invest in individual projects. But each project has a big difference in the return that can be achieved. The return varies greatly from 12% to over 30%. Therefore, the return you can expect depends on which projects you end up investing in. If you go for high-return projects alone, your return will obviously be higher than for a more conservative investor.

Since there are generally few, but large projects on Crowdestor, it can sometimes be difficult to diversify properly. Especially when the investments are high risk, you can thus benefit from spreading your risk more than you can at Crowdestor. Therefore, it can actually be a pretty good idea for you as an investor to combine the use of Crowdestor with similar platforms like Crowdestate and Envestio. However, make sure to check out our Crowdestate review and our Envestio review before deciding to do so.

Who can invest via Crowdestor?

If you want to invest via Crowdestor, you must be at least 18 years old. In addition, it is also a requirement that you have a bank account in one of the member states of the European Union or EEA banks.

If you do not have a bank account in these countries, it is not possible for you to invest. However, you can investigate the possibilities of opening an EEA bank account. Because in many countries it is possible. However, we cannot advise you directly about this, as we do not know where you are from. So if you want to invest via Crowdestor, simply make a search on Google. Alternatively, you can use one of the many other P2P lending sites.

Would you like to invest through Crowdestor? Then press the button below to be taken directly to their website. Here you can sign yourself up as an investor. Afterward, you can start investing through the platform and benefit from the high return:

Is Crowdestor safe to use?

When you invest your money there is always a risk associated with it. Typically, this risk also follows the return you get. And when your return is high, the risk will typically be correspondingly high. So the high return that can be obtained from Crowdestor, will, in general, be described as high risk.

But you may be wondering what concrete risks are associated with investing through Crowdestor. Therefore, in the following part of our Crowdestor review, we take a look at some of the biggest risks you face on the platform. Furthermore, we take a look at what Crowdestor has done to minimize these risks.

The main risk

The biggest risk with P2P lending sites with high returns is typically the investments themselves. The same goes for Crowdestor. Because if the projects you invest in through Crowdestor end up failing, then you can lose the entire amount you have invested in the given project. However, you can of course not lose more than what you have actually chosen to invest in a given project.

Investment risk management

In order to minimize the risk that you take as an investor, Crowdestor has also made some additional measures to protect you.

Among other things, they carefully review every possible borrower before they arrive on their platform. Both reputations, financial background and current commitments are examined. In addition, their business plan, financial reporting, and loan security are evaluated by Crowdestor’s expert team.

However, it doesn’t stop here. Because in every project offered on the platform, Crowdestor takes part as co-financiers and/or co-developers. Therefore their interest is aligned with their investors.

What happens if Crowdestor goes out of business?

A large part of assessing how secure a platform is, is looking at the worst case scenario. In Crowdestor’s case, this will probably be if they go out of business. Therefore, we have also, in this Crowdestor review, chosen to take a look at what happens if Crowdestor ends up folding.

One of the most important steps Crowdestor has taken to protect you as an investor is by keeping your assets separate from their own. They do this by keeping your investments in CROWDESTOR SECURITY AGENT OÜ, which is a separate company. So if Crowdestor goes down with the flag, your investments don’t.

Conclusion of our Crowdestor review

Here in our Crowdestor review, we consider that the security is in order on their platform. We believe that some good security measures have been taken by the company in order to protect you as an investor.

The biggest problem we can see on the platform is that there are relatively few different investment opportunities. Therefore, it can be difficult for you to diversify your portfolio properly and get a favorable risk diversification. So if you want to spread your risk through even more projects in real estate and business niche, we recommend you take a look at other providers like Envestio and Crowdestate. By using their platforms in combination with Crowdestor, you will gain access to more projects and achieve a greater risk diversification.

In fact, it can also be an advantage for you to combine the use of Crowdestor with a P2P lending site such as Mintos. Their P2P marketplace makes it possible to invest in multiple loan types, which will help you spread your risk even more.

Would you like to invest via the platform after reading our Crowdestor review? Then you can press the button to be taken directly to their website. Here you can create an investment account and start investing in the projects on their platform. In this way also you can start benefiting from the high yield that is to be found at Crowdestor: