Just launched in February 2019, Tallinn-based peer-to-peer real estate investment platform EvoEstate has already expanded its portfolio to 18 projects across seven countries, and reached €10 million in value of investment opportunities. With a minimum investment of only €50, the platform offers the opportunity for almost anyone to invest.
The company is now reporting an impressive 100% month-over-month growth, while serving investors from 52 countries.
Using the EvoEstate platform, customers can invest in real-estate deals from all around Europe, accessing multiple lenders’ deal-flow all in one place and diversifying their investments without the restrictions of local regulations. The startup also recently announced an auto invest feature, which allows investors to create various portfolio strategies to eliminate risks.
EvoEstate just introduced the secondary market, which it will support it with margin trading feature – unique in the peer-to-peer (P2P) industry. Investors will be able to use up to 75% of their investment portfolios’ value to trade without having the funds on their wallet.
EvoEstate is a peer-to-peer aggregator for real-estate crowdfunding investments with a special focus on investors. The founders of the company have long been investing in the P2P real estate markets before they come up with the idea of combining all European platforms’ deals under the EvoEstate platform, and focus purely on the issues of investors. Although the idea of P2P investing is not new and might seem simple at first, it still takes much effort to attract parties and make it work both ways.
Traditional real estate lending platforms focus on solving the issues of real estate developers, because they either can’t obtain financing from banks, or simply choose not to do so. Consequently, this often leads to unclear descriptions of investment opportunities and disguised risks or financial metrics.
EvoEstate acts as an aggregator of investment offers from different platforms, although it still focuses on individual projects. Before being listed on EvoEstate, each project must go through the established due diligence process.
The EvoEstate founding team participates in the lending process and explains possible loan risks and worst-case scenarios — this is where the deal originators (the lending platforms) often miss out.
Since the company founders are also investors, they separate their investment opportunities in two sections:
1) where they invest their personal capital, and;
2) where they don’t while explaining the reasons and risks. EvoEstate also provides its clients with the latest investment tools.
“The economics of two-sided platform’s business model is rather simple,” said Gustas Germanavičius, CEO at EvoEstate. “However, to make it work, both sides when growing should provide more value to each other. Our current growth is actually bringing more value back to our clients because we are able to aggregate more investment opportunities. And more investment opportunities mean broader diversification, which leads to lower risks and stability of investment portfolio which creates more value to the investors.”
