Fixed-income investments offer a stable return on European SME

Last week, we introduced our teams working in Helsinki, Vienna, and Berlin. At the same time, we promised that the merger of our investment platforms will bring even wider investment opportunities to investors. Now is the time to deliver on the promise: get familiar with fixed-income investments! Debt instruments are very popular in Europe, and now available also to our Nordic investors.

Invesdor’s loan rounds offer investors the opportunity to invest in solvent SMEs across Europe

Through Invesdor’s platform, you can invest in business loans on a crowdfunding basis, with a fixed monthly interest rate. In crowdfunding, a loan applicant is a company that seeks financing for investment or growth from a large number of investors.

Our investment committee checks the eligibility of each individual company before our local contract teams finally add them to Invesdor’s platform. We always provide the investor with a comprehensive description of the company and the purpose of the loan.

Debt-based crowdfunding, also known as crowdlending, has grown rapidly in recent years and is a popular form of fixed-income investment worldwide today. In Germany and Austria, the general form of GmbH differs in many ways from Finnish Ltd companies, and therefore loan rounds are more common there than share issues. Kapilendo and Finnest were the pioneers in enabling crowdlending in Germany and Austria.

Interest and risk go hand in hand

The interest rate or expected return reflects the risk and return of the investment. The higher the risk, the higher the interest rate or expected return. In fixed-income investments offered by Invesdor, the average annual interest rate is 6.5%. We recommend that you share risk by diversifying your investments into several different risk categories and balancing your investment portfolio with higher liquidity investments.

Diversification is the investor’s only free lunch.

Through Invesdor, it is possible to invest in loans to Finnish, German, and Austrian companies without geographical borders. Business loans bring a good addition to the investment portfolio as they do not significantly correlate with shares or other fixed-income market.

A single fixed-income investment on Invesdor’s platform usually has a minimum of only EUR 250, so it is possible to start investing with a small initial capital.

Fixed-income investments are suitable for investors who value a stable return

Unlike equity investments, fixed-income investing provides a regular, predetermined return on invested capital. As a result, the fixed-income investor has a better view of how their own investment portfolio is developing.

Loan rounds have generated millions for European companies to grow and expand.

More than 400 companies have funded their growth on Invesdor’s platform over the past 9 years. Among them are pioneers in mechanical engineering, innovative pharmaceutical companies, and pan-European gastronomic concepts

Loan rounds have generated millions for European companies to grow and expand

Evobeam GmbH is a manufacturer of special welding machines and 3D metal printers. Thanks to Evobeam, high-precision metal parts are used in Mars flights, satellites, jet engines and Formula 1 racing cars. Evobeam financed its additional growth through Invesdor by raising EUR 1 million in financing.

Loan round in May 2019
Need for financing: pre-financing of a large order backlog and growth
Loan of EUR 1 million, quarterly repayment
Annual interest rate 4.65%
2-year loan period
The loan was financed in less than 2 hours by 675 investors.

Biogena develops and manufactures high-quality trace element products and has established itself in Europe. The product range extends from natural products to wellness products. The company has made two loan rounds with Invesdor in 2018 and 2020, raising a total of EUR 5.6 million. Biogena was listed on the Vienna Stock Exchange in 2021.

Loan rounds in 2018 and 2020
Need for financing: financing the company’s growth and expansion
Loan capital total EUR 5.6 million
Annual interest 4.00%

In the future, we will offer attractive fixed-income investment opportunities also to Nordic investors who have even better opportunities to diversify their portfolios.

Read also:
This is the new Invesdor
Fixed interest or equity investments – which type of return are you aiming for?