Crowdestate platform summary of 2020

Reading time: 5 min.

We have managed live through the eventful year of 2020, which we will now sum up with a decent overview blog post. We take a look at the statistics, the innovations made during the year and the investment opportunities financed.

Crowdestate crowdfunding platform in numbers

Believe it or not, we will soon be 7 years old. During this time, a total of 299 investment opportunities have been registered on the platform for 53 585 investors. Capital in the amount of 99 186 551 euros has been raised and the exited projects average return to investors by the end of 2020 is 16.16% IRR per year.

Click here to access the statistics page of Crowdestate.

Summary of the quarters of the ending year:

Q1 – During the first 3 months, 20 new investment opportunities were added to Crowdestate’s co-financing platform. A total of 5 successful exits took place from the projects. A total of EUR 1 660 130.42 was paid out to investors.

Read more about the overview of the 1st Quarter here.

Q2 – 17 new investment opportunities were added. A total of 8 successful exits took place and payments were made to investors in the total amount of EUR 3 891 305.33.

Read more about the second quarter: April, May, June.

Q3 – 22 new investment opportunities were added to the platform and 24 successful exits took place. Payments were made to investors in the total amount of EUR 8 44 842.92.

Read more about the 3rd Quarter: July, August, September.

Q4 – 26 new investment opportunities added to the platform, 23 successful exits and payments made in the total amount of EUR 2 676 146,41.

Read more about the 4th Quarter: October, November. The December overview will be published in January 2021.

Platform updates

During the year, several updates have taken place on the platform, with the aim of making the investment experience for investors as comfortable as possible. ?

Proof of residence – Due to Latvian, Italian and Romanian tax laws, income tax is withheld on all interest payments. From 2020, it is possible to upload a residence permit in order to avoid double taxation. Read more about the tax system.

Identity verification – from this year, all investors are obliged to pass personal identification. Unidentified users will not be able to participate in the financing of new investment opportunities. Read more about verification.

Investment account in LHV – since summer 2020 it is possible to connect Crowdestate’s investment account with LHV Internet Bank. Read more about how to do this in the explanatory article Crowdestate investment account at LHV.

New investment system – pre-booking is so last year. We listened to the advice of investors and launched a new investment system.

Secondary market service fee – 2% + VAT transaction fee is now applied for the sale of investments in the secondary market. The fee is calculated in the seller’s account at the same time as concluding the purchase and sale transaction.

New reports – for a better overview of investment accounts, it is now possible to generate a personal income statement and a balance change report.

Not an investor yet? Join the Crowdestate investor community.

2020 has been a successful year for both – new investors and projects. Crowdestate investor community has grown by over 10 000 investors during the year, bringing the total number of investors to 53 585! We are sincerely grateful with our whole team that you are investing with us!

In addition to the above, this year we had our first Romanian project Splaiul Independentei 294 exit, about which we have also written a longer success story.

In 2020, we reached so close to 300 with the funded projects. 93 Investment opportunities were added to the platform, and as of the end of the year, 299 investment opportunities have been financed with the help of Crowdestate investors.

Check out our investment opportunities. 

Problematic investment opportunities:

In August, the long-indebted project MMMSprattus OÜ was exited, the debt was processed for a year and a half. MMMSprattus OÜ repaid Crowdestate’s investors in the amount of EUR 276.365, exceeding the total amount of loan raised from investors by EUR 16 365 (EUR 260 000). The final return (IRR) of the loan granted to MMMSprattus OÜ thus amounted to 3.43% per annum

In 2020, unfortunately, we also went through the default of two projects. In August, the first defaulted loan – Metsa tee 33/31/35 was added to Crowdestate’s portfolio, followed by Estera Development Holding in September.

Statistics of the overdue lost capital projects can be downloaded from our statistics page.

Comment by Loit Linnupõld, CEO of Crowdestate:

When we summed up 2019 12 months ago, there were no serious signs of the extraordinary of 2020. Today, it can be said that the emotional and financial tensions of 2020 have clearly surpassed 1998, which has been the most difficult for me so far.

Since March 2020, significantly more people have worked in home offices, and physical communication with both the team and customers has become virtual. On the one hand, global restrictions imposed in the first quarter of 2020 had a devastating effect on both consumer confidence and investors’ investment interest, and on the other hand, most real estate companies froze their plans to start new real estate projects. In the face of significantly increased uncertainty, we further tightened the criteria for analyzing and approving our investments. As a result of all these factors, the volume of real estate projects financed through Crowdestate in 2020 was somewhat lower than in 2019, and in 2020 we no longer published any projects in the field of corporate finance.

Despite the temporary decline in business volumes, Crowdestate’s 2020 financial year result will be positive and should demonstrate to our investors our ability to conduct business successfully even in difficult times.

In 2021, we plan to continue to expand Crowdestate’s co-financing activities to the next European Union member states, which should lead to an increase in the number and volume of high-quality investment opportunities as well as the number of investors financing them. Crowdestate also intends to apply for the necessary license for the crowdfunding business in the light of the European Union Co-financing Regulation, which will enter into force in November 2021.

Crowdestate would like to thank all Investors, Sponsors and cooperation partners. We have lived through a difficult year together. Thank you for investing with us!

PS. You can also find us on social media. Facebook, LinkedIn, Instagram, Twitter.