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Envestio Review (December 2019 Update)

Envestio Review (December 2019 Update)

Last Update: / by Marco Schwartz

One of my favorite asset type is Peer-to-Peer lending, which consists in lending money to individuals via online platforms, in exchange for payment of interests over time. Peer-to-Peer lending has a high-yield, can be completely automated, and also has a low level of risk if you do it right.

In order to diversify my portfolio and reduce the level of risks of my investments, I am always looking to invest on new Peer-to-Peer lending platforms. In this article, I will review Envestio, a Peer-to-Peer lending platform based in Estonia. I heard of them by searching for new Peer-to-Peer platforms and realized many of my friends that are also investors already tried it out. It's a quite different platform from the usual Peer-to-Peer lending platforms, so I really wanted to try it out & share the results with you.

Envestio
My Overall Rating
My Average Yield
15.88%
Investment Protection
What I Liked
High-yielding projects
Auto-invest function
Buyback guarantee
Easy to diversify
What I Didn't Like
Not enough details on projects
No secondary market
Interface can be improved

So far, I can say that I am very satisfied with my investment on Envestio. For sure, as they have mostly high-yielding & innovative projects, it also means that there is a higher level of risk associated with the platform. Even if the principal (what you invested) should be safe because of the buyback guarantee, in case a loan defaults you would still have lost all the time without earning interests. Therefore, what I recommend is to invest on Envestio as a small part of your overall investment portfolio, in order to benefit from the high yields on the platform that will raise your overall portfolio yield. I will definitely keep on investing on the platform as part of my own portfolio, and I will keep you updated about the results.

The Envestio Platform

Compared to other Peer-to-Peer lending platforms, Envestio is quite different, especially in the type of projects that they propose. On the surface, they are quite similar to other platforms: you basically invest in loans that are tied to projects that are featured on the platform, and in exchange, you will get interests on the money that you invested.

Where Envestio is different is in the type of projects that they propose: you will find the usual business development loan or real estate development loan on the platform, but they propose mostly really innovative and unique projects. For example, on the first projects I invested in with Envestio was a project dedicated to funding a company recycling electronics to produce raw materials out of it. You will also find projects like renovating a power plant or building a cryptocurrency mining farm. As a result, the yields offered by Envestio are much higher than other platforms, usually around 20%. Most of the projects on the platform are also backed by a buyback guarantee for the principal of each loan (meaning you will get back the money you invested in case a project defaults).

Opening an Account

The first step is to actually open an account and to deposit funds. The whole process was very easy, and it only took me 5 minutes to actually open the account. There is also a verification process of your ID, but it's only necessary when you want to withdraw money.

To deposit money, they will provide you an IBAN & reference number that you can use to fund your account. I used TransferWise for that, and it only took 1 day to have the funds on your account:

Envestio Review (December 2019 Update)

As for all platforms that I test now, I also tried to withdraw money just to see if that works. I had no problems doing so (after they verified my account, I just had to upload my passport scan), and the money was back in my account in 2 days.

Investing in Projects

Let's now see how to actually browse the available projects and invest in them. Here is a sample of the projects that were available when I wrote this review:

Envestio Review (December 2019 Update)

As you can see, there are projects in many fields, like real estate and business development, but as I mentioned before you will also find a lot of other projects like cryptocurrency mining.

For each project, you will some key numbers about the loan, like the type of project, term, interest rate, and additional information:

Envestio Review (December 2019 Update)

For my first investments, I selected a few investments that had both a high yield and a repurchase guarantee, in order to keep my money safe in case of defaults.

Additional Features

There are also some other cool features on Envestio, like the statistics module: 

Envestio Review (December 2019 Update)

This allows you to really see the state of your portfolio on one single screen, with the current distribution of the portfolio, and the historical portfolio value & returns.

At the time I published this review, there was no auto-invest function available, but they told me they plan to release this function in the future.

My Returns on Envestio

It's now been now over a year that I started to invest on the platform, so let's have a look at my current portfolio (I didn't add any money since I first wrote the review as I wanted to try other platforms to diversify): 

Envestio Review (December 2019 Update)

I earned 97.34 Euros since I opened the account, and no loans defaulted so far. It's still early to calculate exact returns, but so far I estimate my annual yield for the platform at somewhere around 15%, which is completely in line with what was announced by Envestio. So I am still very satisfied with the performances of the platform so far. They also added an auto-invest function in the meantime, which really helped to reinvest money as repayments come in.

Should You Invest on Envestio?

So far, I can say that I am very satisfied with my investment on Envestio. For sure, as they have mostly high-yielding & innovative projects, it also means that there is a higher level of risk associated with the platform. Even if the principal (what you invested) should be safe because of the buyback guarantee, in case a loan defaults you would still have lost all the time without earning interests.

Therefore, what I recommend is to invest on Envestio as a small part of your overall investment portfolio, in order to benefit from the high yields on the platform that will raise your overall portfolio yield. I will definitely keep on investing on the platform as part of my own portfolio, and I will keep you updated about the results.

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Franck a month ago
I sent e mail to envestio and i also called the number on their website but i never got replies !! It looks like everything is fake !!
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Gianni Lon 4 months ago
There is alot of cash drag because of a lack of projects. I will be taking my money out.
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Marco Schwartz Gianni Lon 2 months ago

Make sure to have auto-invest on to be on each new project, it really helped me to avoid the cash drag

tbee 5 months ago
Hello Marco are you still significantly invested in Envestio? I also made a euphoric presentation (in German) of Envestio some time ago and invested a couple of money: http://p2p-game.com/envestio-p2p-mit-fisch-und-kryptos But lately there are no/very few projects coming so I withdraw most of it. But the announcement of the Autoinvest comes again and again now... How do you see that?
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Marco Schwartz tbee 4 months ago

Hi, significantly no but I am of course still invested in it. And now they have autoinvest so you shouldn't miss deals anymore :)

Maria 6 months ago
Hi, I read in another review that in order to withdrawal from Envestio, you need to submit a copy of a utility bill to prove your home address but you only needed to provide a Passport scan. Is that correct?
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Sebastian Mickle 9 months ago
Is there a clear feature for taking out your money 100 percent?
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Jacek Majcher 9 months ago
Też inwestuję od luty 2019 , mają mało projektów, długo się czeka. Duży popyt .
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Jorge a year ago
The buyback guarantee covers only 95% of the principal, right? Thanks for the review!
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Marco Schwartz Jorge a year ago

Yes indeed! You're welcome :)

Daniel a year ago
Thanks!
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