IUVO – next investment

Before the year ends, we still wanted to make some last investment posts, and this one is about the platform IUVO. Strangely enough I found this platform through Facebook, which as mentioned previously is not something I usually like to admit. In my opinion, the best online platforms to act as intermediaries are specialized one way or another, but in the end I’m so far glad I came across this fintech regardless of how it happened.

Not too different from other platforms DS has invested in, Iuvo offers uncomplicated crowdlending across different types of loans mostly in Eastern European countries, and the interest rates to investors range from 5 to over 15% p.a. Two of the features they are most proud of and advertise are the possibility to secure investments with a repayment guarantee and the higher end of their interest rates, effectively higher than other in the market.

IUVO highlights

• Registration on the platform was very easy and its interface is intuitive and offers you plenty of options;
• Before this platform, I don’t think I had much exposure to loans in Bulgaria or Romania, so this investment continues to expand our diversification across Europe;
• Communication on the platform, per email and even on Facebook are a highlight. Daily emails, clear display of your investments after your IUVO login and a lot of exclusive material on Facebook such as introduction of the people behind this fintech all account for a differential when contrasting them with other investment platforms.
• Options of primary, secondary markets, as well as auto-invest gives a range of alternatives when investing. I’m still not quite sure on the logic of investing in the secondary market because the risk of taking a loan with delayed repayment seems to large, but I guess for those who are willing to run more risks to get higher returns it can be interesting.

Where they are lacking

• DS mainly exists to invest, so we are able to assess acceptable risks and avoid all the segments we consider is not worth what they remunerate. An unseasoned investor, however, can easily underestimate risks when keen to get higher returns;
• As much as DS considers their Eastern European focus an advantage as an addition to our portfolio, we understand as a German company that many Central Europeans would be resistant to expose their investment too much on countries like Bulgaria and Romania. In this sense, it’s important for the platform’s future to expand across a wider range of countries and even regions;
• We have mentioned that communication was a highlight for this platform, but the flip side of that being their main competitive advantage is that others could easily copy it. If I was IUVO’s management, I would be thinking very hard on how to make my platform fundamentally different from others in the future. Maybe new features or markets are an opportunity, because just good communication, option to guarantee loans and high yielding crowdlending are valuable, but do not make you fundamentally different from your competitors.

Financials

– Initial investment amount of 900 Euros, two thirds of which allocated to an auto-invest portfolio with pre-selected criteria;
– Interest rate averaging 10,12% annual interests so far.

For those who celebrate it, we belatedly wish you and your loved ones a happy Christmas, and come back before the 31st of December and we will have more FinTech posts for you!