Envestio autoinvest – finally released

Time has come! Finally the autoinvest tool is available for Envestio. No more eagerly waiting and trying to estimate when projects are going to be published.

It looks similar to other autoinvest tools, e.g., Mintos, Crowdestate, Fast Invest and interface is quite straight forward.

Add autoinvest rule under Investments -> AutoInvest section
Configuration of Envestio’s autoinvest tool

The configuration above is all it takes to capture all loans and to be ready with the setup.

You can read more detailed description in their announcement blog post. I am eager to dig deeper and find out something I was curious about.

Namely, in terms for Envestio autoinvest tool to understand how does it work.

Findings in terms for Envestio autoinvest

Considering that the demand massively exceeds the supply, there is one question. How to create an autoinvest policy which is as fair as possible?

You can find the terms in this link.

They are not that long to go through and after re-reading point 12 more than 3 times – the policy became more clear. I will explain later.

When a new application is added in the portal, the Autoinvest application shall create a list of the Autoinvest rules created by Users, who use the Autoinvest application.

The Autoinvest rules shall be ranked in the list according to the most recent transaction made by the Autoinvest application so that the highest rank shall be assigned to Autoinvest rules of Users, through which the funds were used to make a transaction the longest time ago. If the funds of a User have not been invested via the Autoinvest application, the ranking of the User in the list shall be determined by the time of activation of the Autoinvest application.

On the basis of a corresponding list to be generated each time a new, the system shall decide whose funds can be raised upon making an investment, and to what extent. Maintenance of the list by the application shall ensure equal treatment of Users upon using the funds granted by them for investment.

Point 12 in terms for Envestio autoinvest tool

Second which I also found important is no. 15.

Autoinvest submits an automatic declaration of intention immediately before the Users are given the opportunity to manually submit a declaration of intention on the Platform in relation to the corresponding investment opportunity.

Point 15 in terms for Envestio autoinvest tool

What does it mean?

Firstly, set up the autoinvest rule as soon as possible. Because this will be the decisive factor for who gets to invest in the next project. I.e. no rules have been made before and the sooner you create one, the more chances you have to participate in the next published project.

If the funds of a User have not been invested via the Autoinvest application, the ranking of the User in the list shall be determined by the time of activation of the Autoinvest application.

Sentence taken from the point 12.

The rule 15 supports this by saying that autoinvest will trigger before investors can invest manually.

Autoinvest immediately before the Users

Quote from the point 15.

Secondly, queue for investing with Envestio autoinvest could be rephrased to the following.

If your rule got a chance to invest, your rule moves to the end of the queue of all rules. When the next project is published your rule is at the end of the queue and need to wait until other rules had a chance to invest.

The Autoinvest rules shall be ranked in the list according to the most recent transaction made by the Autoinvest application so that the highest rank shall be assigned to Autoinvest rules of Users, through which the funds were used to make a transaction the longest time ago.

Sentence form the point 12.

Conclusion

Setup as soon as possible if you want to maximize your chances to participate in the next published project.

To promote fairness Envestio introduced autoinvest rule queue policy where “first to invest now will be the last for the next project”.

Lastly, the new autoinvest tool will invest before users can do it manually.

Thank you for staying tuned. I am really eager to see how it all work in practice. I am sure there will come up some corner cases.

Let me know what are your thoughts, maybe I missed or misunderstood something? Always welcome to leave a comment.

6 comments

  1. That’s an interesting development, introducing Envestio’s Autoinvest tool. Thanks for high lighting and explaining their new feature. I’ve been holding of a bit on registering at their platform; mainly because I wanted to see what the announced new partnership will entail. It was communicated a while ago and expected to go live around the first week of July. I guess Envestio is experiencing some delays in finalizing this new big partnership. Let’s see what kind of new projects there will be available. I’ll be keeping an eye on them!

    1. Hi Fmyk,

      nice to hear form you! Great that you liked the overview. I am too anticipating the new partnership announcement and projects to follow.
      I did write to them on July 11 and they responded the following:

      “Dear Janis,

      New projects are being carefully assessed by our legal and compliance team.
      We plan to start adding new opportunities from next week. Hopefully, we will be able to increase the loan availability, currently about potential 10 000 000 EUR worth of projects are being reviewed.


      Kind regards,
      Envestio Support”

      There was in fact one two tier project released in July with total volume of 1.6m EUR. Got funding in matter of hours.
      It would be interesting to see how much money is available for investment in the platform at any given time.

  2. I wish I had discovered Envestio months ago; by the time I learned about them they were already experiencing a lack of projects. I’m also eager to see when and what kind of projects will follow. Guess the summer holiday isn’t helping speeding things up with finalizing all paper work for the new partnership. Yes, I noticed that project too (but decided to hold of). A perfect opportunity for all the cash drag from existing investors 🙂 Let’s hope the frequency of the projects will pick up and see the impact of the new Autoinvest tool. Thanks for sharing their response!

    1. Completely agree, summer is for taking some time off the work and I feel like they have deserved a well rest.
      I am excited to see on how the Envestio autoinvest will actually work in practice. Let us cross fingers that they have spent decent amount of time to make sure it works as described.
      As for now to be honest I am not against the “fair policy” which they introduced.

      1. Absolutely! Sounds way more fair to all. Have been reading about investors having old Auto-invest tools on other platforms in their possession, also being referred to by some as “gold mines” 😉

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