First FinTech Investment – ReaCapital

It’s been enough time since my Investment Challenge on FinTechs was launched in October and I now start reporting about it. As mentioned on last week’s post it will be a gradual approach rather than waiting for the full round to be completed, so here are the details for this first disbursement.

Details:

• Amount: 2000 Euros
• Period: 18 months
• Rate: 5,25% p.a. base rate, early bird bonus of 1,75%

The main reasons for ReaCapital and this specific project to be selected:

1- how easy their client interface is, creating a login on their website and providing payment data is painless;

2- after inserting your banking data, the money comes out very quickly. I was a bit surprised at first but actually think this is a sign of efficiency; and

3- both project and early bird discount were launched exactly as we were looking for investments, so timing really helped.

Another point for ReaCapital is their attendance to FinTech events, which is how I originally met them. Such an effort gives them more visibility and exemplifies their approacheability.

Also, it’s worth noting that the company can in a sense be considered a PropTech since the investment ultimately goes to financing a construction project, but in regards to the investor they are really a secured crowd-lending platform.

Financially, the offered rates are appropriate to the corresponding (low) risk, especially considering the bonus, and a previous experience with them shows that early repayment is also a possibility, increasing the return yield. On the down side, the combination of fixed tenor and repayment of interests at the end of the contract mean your investment is off your hands for while and you don’t have liquidity.

Finally, this FinTech’s website is simple but effective in getting your investment and their communication strategy is also minimal: I receive an email from them with either when either a new investment or a meaningful event for an invested project come up.

So let’s see how this ReaCapital investment compare to the next ones in this round, please feel free to comment or write me in the meantime if you have anything to share!