Crowdestate Transparency: The 2019 Annual Report

S4F News & Insights Crowdestate @ Savings4Freedom
Crowdestate published its 2019 annual report. A great approach to corporate and financial transparency to build trust, retain investors, and grow.

Among P2P investors, having access to detailed financial information is a crucial transparency step to reinforce trust and investments. Crowdestate have been among the few P2P platforms that publishes on a regular basis an annual report. Simple language, clear valuable information, and adequate risk monitoring data. A positive example to be followed by other players in the Industry.

Read the Crowdestate Annual Report

Crowdestate published their 2019 annual report. This is a great approach towards a transparent communication of financial data to attract and retain investors, building their confidence and informing the market.

The highlights of the report is that is easy to read, presents useful information, and the company shows stable profits.

Annual Report Highlights

Changes in Corporate Structure

To ensure the sustainability of the company and prepare the business for upcoming regulation, shareholders decided to restructure Crowdestate’s corporate structure and continue the business as a joint-stock company, Crowdestate AS.

Lack of Crowdfunding Regulation

While there have been discussions about establishing the local crowdfunding regulation, Estonian regulators have been favoring the establishment of common European crowdfunding regulation and therefore, Estonian crowdfunding scene is still an officially unregulated area.

However, Crowdestate follows a Estonian crowdfunding self-regulatory regime. If you want to learn more about this initiative check the Finance Estonia website.

Geographic Expansion

At the end of 2019, Crowdestate had local teams in Estonia, Latvia, Italy and Romania.

Investments Funded in 2019

There were 86 new investment opportunities worth EUR 33,033,650 funded on Crowdestate’s platform in 2019. The average size of an investment opportunity in 2019 was EUR 384,122 and its median size was EUR 265,000. The value of the largest single investment opportunity published in 2019 was EUR 1,950,000, and the value of the smallest one was EUR 70,000.00.

Project Defaults

The Crowdestate annual report highlights all key non performing projects.

Growing Number of Investors

The number of Crowdestate’s investors increased from 25,089 at the end of 2018 to 42,327 at the end of 2019, up by 68,7%.

Financial Results

In spite of reduced income from success fees and wrapping up our corporate funding activities, Crowdestate’s revenues increased to EUR 1,58 million in 2019, up by 15,3%. Crowdestate’s consolidated 2019 EBITDA was EUR 689,507 and net profit for 2019 was EUR 462,729.

Crowdestate’s profitability decreased slightly, affected by increased payroll, legal and depreciation expenses.

Future Steps

As soon as the economic environment stabilizes, Crowdestate will also continue with its payment institution application process.

Conclusion

Crowdestate shows how simple can be to write a clear annual report. I cannot highlight enough the importance of such an action towards building the necessary trust that the P2P industry needs to grow. It is crucial that other platforms follow this example and share information with investors to help them decide based on better information.

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