HomeEstonia-StartupsEstonian fintech EvoEstate raises €320K to grow its next-gen investment platform globally

Estonian fintech EvoEstate raises €320K to grow its next-gen investment platform globally

Today Tallinn-based EvoEstate announces a €140K pre-seed extension to close its €320K pre-seed round. The next-gen investment platform has been backed by Lithuanian Startup Wise Guys, a Hong Kong-based stealth investment fund, and business angels from France and the Baltics.

Founded in 2019, EvoEstate is a real estate crowdfunding aggregator that makes investing in property easy by offering the lowest investment amount of €50. EvoEstate founders are investing alongside their clients and sharing the investment risks by having skin in the game, currently it amounts to €150K.

This investor-centric approach has made EvoEstate a preferred choice for real estate investments in Europe. Despite being a young industry player, the platform caters to the needs of 2500 investors from 50 countries. Within one year of its operation, EvoEstate has helped co-finance 178 real estate projects from 15 countries. The current average annual return rate of the repaid projects is 12.64%.

While many of the European P2P and crowdfunding platforms have been experiencing heavy delays in interest payments, EvoEstate’s portfolio has remained intact by not exceeding the 3% mark of late interest payments. During the all-European lockdown, the average XIRR for repaid projects stood at 12.6% while projects from 4 countries were repaid.

EvoEstate has recently introduced risk scoring models for property investments. They are powered by machine learning algorithms and analyze thousands of property crowdfunding deals that have been carried out throughout Europe during the last decade. Additionally, EvoEstate runs scoring models on its originators to identify the risk level of the environment the deal is structured in. In the marketplace, investors can find real data on late payments of each originator. These features enable retail investors to engage in institutional investing experience.

Due to its innovative business model and rapid progress, EvoEstate has been recognized as the best Fintech business in the Baltic states by Techchill and named one of top 10 startups by Emerging Europe.

The good news is that with the newly-raised capital, EvoEstate will be able to go beyond Europe and start providing its services on a global scale. However, according to EvoEstate’s founders, the funds will be allocated to serve a few purposes.

With the growing user base of the platform comes the necessity for business expansion. Although EvoEstate operates from the Baltic States, it incorporated the approach of going global from the very first days. Its customer base includes only 5% of local clients, while 95% of users come from Western Europe and international financial hubs. Seeing the increased demand for diversified real estate investment options, EvoEstate aims to become accessible to investors from new geographical areas. Therefore, part of the raised funds will be spent on further expansion and securing the required financial licenses.

Charlotte Tucker
Charlotte Tucker
Charlotte is the previous Editor at EU-Startups.com. She spends her time scouting the next big story, managing our contributor team, and getting excited about social impact ventures. She has previously worked as a Communications Consultant for number of European Commission funded startup projects.

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