Goparity platform review.
Welcome to our review of Goparity, an innovative online investment platform that aims to connect private and institutional investors with projects aligned with the United Nations' Sustainable Development Goals (SDGs). Goparity stands out as a platform that prioritizes the sustainability of projects, making it a unique choice in the European market. So, if you are looking to support impactful projects that contribute to a better future, Goparity might be the ideal platform for you.
What is Goparity?
Goparity is a pioneering crowdfunding platform that revolutionizes the way individuals can invest in projects with a positive social and environmental impact. By partnering with Goparity, investors have the opportunity to support ventures focused on renewable energy, energy efficiency, sustainable agriculture, and other environmentally conscious initiatives. The platform distinguishes itself through its dedication to promoting meaningful change while ensuring financial returns for its investors.
Since its launch in 2017, Goparity has empowered individuals and organizations to crowdfund various projects with social and environmental impact. The platform offers a diverse selection of projects, spanning both nonprofit and for-profit entities. Investors can expect an average annual interest rate of 6% and an average maturity period of 3 to 5 years, corresponding to the repayment of the original loan.
Goparity maintains stringent criteria for project selection, ensuring that all listed ventures align with the United Nations Sustainable Development Goals (SDGs). These goals encompass a wide range of areas, such as gender equality, clean water and sanitation, and sustainable cities and communities. By adhering to these SDGs, Goparity guarantees that every project funded through their platform contributes to the pursuit of a sustainable future.
How does Goparity work?
Goparity operates on a crowd-lending model, which allows investors to collectively pool their funds and lend them to specific projects. Despite contributing to a shared pool, each investor enters into an individual contract with the project promoter based on their invested amount.
The platform offers a user-friendly experience, enabling users to quickly create accounts and begin investing. Goparity specializes in crowdlending or debt crowdfunding for sustainable projects, primarily focused on financing loans for small and medium-sized businesses. The projects encompass five key categories:
- Sustainable energy: projects related to renewable energy, energy efficiency, and clean technologies.
- Blue economy: initiatives that promote sustainable practices and economic growth in coastal and marine environments.
- Smart sustainable cities: projects aimed at creating environmentally friendly urban spaces with efficient infrastructure and sustainable practices.
- Rural development: ventures that support sustainable agriculture, rural communities, and local economies.
- Social entrepreneurship: initiatives driven by social and environmental impact, fostering positive change in communities.
As an investor, you have the opportunity to lend money to project promoters, with a minimum investment starting at 5€. In return, you receive a fixed interest return on your investment throughout the loan's duration. Goparity provides a platform where investors can support sustainable projects while earning a financial return on their investments.
How does Goparity make money?
Goparity adopts a transparent approach to its revenue model. The platform generates profit through the following means:
- Initial setup fee: Goparity charges project promoters an initial setup fee based on the funds raised for their projects. This fee is applied at the beginning of the crowdfunding campaign.
- Ongoing fee: Goparity also charges project promoters an ongoing fee on the standing debt throughout the duration of the loan term. This fee is calculated based on the amount of outstanding debt.
- Marketplace fee: investors are not subjected to any fees by Goparity, except for the marketplace fee. This fee is applicable only if investors choose to transfer their investments before the loan reaches its maturity.
By implementing these fee structures, Goparity ensures transparency and aligns its revenue generation with the success of the projects promoted on its platform.
Investing with Goparity
Getting started with Goparity is a quick and hassle-free process. Follow these simple steps to join the platform:
- Registration: fill out a short registration form with the required information. Once completed, you will need to verify your email address. This step confirms your registration and enables you to access detailed investment information. It's important to note that the registration process is completely free, with no obligations or commitments attached.
- Account verification: upon registration, you will receive a confirmation email containing a verification link. Click on the link to verify your Goparity account.
- Wallet top-up: after verifying your account, you can conveniently top up your Goparity wallet with any amount starting from €5. You have the flexibility to choose between card payment or bank transfer, using your personal Goparity IBAN (which is unique to your account).
- Select and invest: once your wallet is funded, you can explore the available projects on Goparity and decide which ones align with your investment preferences. Determine the amount you would like to invest in each project and proceed to make your investment.
By following these steps, you can begin your journey of making a positive impact by investing in projects that align with your values and aspirations.
Performance and returns
Investing in sustainable projects on Goparity offers investors an average annual return of approximately 6%. While this return may be lower compared to other crowdlending or P2P platforms, users are drawn to Goparity due to the environmental impact of the projects they support, alongside the financial returns.
One notable feature of Goparity's loan structure is that all loans are amortized. This means that in addition to receiving monthly interest payments, investors also receive monthly loan repayments throughout the loan term. As a result, the default risk gradually diminishes over time, as investors continuously receive both interest and principal repayments.
This repayment structure provides investors with a steady stream of income and helps mitigate the risk associated with the investment. It offers a more predictable cash flow and enhances the overall sustainability of the investment, aligning with Goparity's mission to support sustainable projects while generating financial returns for investors.
Investor protection and risk management
Goparity operates under the regulation of the Portuguese Securities Market Commission (CMVM), which oversees crowdlending platforms in Portugal. This regulatory approval is significant as it indicates that Goparity's business model and processes have met the standards set by the regulator, reducing platform risk.
To mitigate the risk of borrowers being unable to repay their loans, Goparity employs various measures, including:
- Equipment pledge: goparity secures compensation by obtaining an equipment pledge from the borrower. This helps safeguard the investors' interests by providing an additional layer of security.
- Financial guarantees: goparity obtains financial guarantees from the legal representatives or parent company of the borrower. These guarantees serve as a form of assurance that can help cover potential defaults.
- Co-financing: in certain cases, Goparity ensures co-financing by involving another company. This arrangement provides an additional layer of protection as it spreads the risk across multiple parties, reducing the impact of a potential default.
It's important for investors to note that while financial guarantees from legal representatives offer some level of security, they may not be as valuable as pledges on assets such as mortgage-backed loans. Investors should consider the nature of the guarantees and assess the associated security accordingly.
Goparity auto investing
Goparity offers an auto-invest feature that enables users to automatically invest in new projects that meet their predefined criteria. This feature is designed to provide a convenient and efficient way for investors to passively diversify their portfolio.
By utilizing the auto-invest feature, users can set specific investment preferences, such as project type, interest rate, duration, or other relevant criteria. When a new project that matches these criteria becomes available on the platform, the auto-invest feature will automatically allocate funds to that project on behalf of the investor.
The auto-invest feature not only saves time and effort but also helps investors diversify their portfolio across different projects, reducing concentration risk. It allows investors to take advantage of investment opportunities that align with their preferences without the need for continuous manual monitoring and decision-making.
Goparity secondary market
Goparity provides a secondary market feature that allows investors to sell their entire investment in a project if they have changed their investment strategy or wish to exit their position. Additionally, this feature offers an opportunity for new investors to invest in projects that have already reached their funding goals.
It's important to note that when using the secondary market, investors can only sell their entire investment in a project and not a partial portion of it. Furthermore, there is a minimum holding period of 30 days before investments become eligible for sale.
While the secondary market offers flexibility and liquidity, it's essential to consider that Goparity charges a fee of 1% for utilizing this feature. This fee is deducted by Goparity from the proceeds of the sale.
The secondary market feature provided by Goparity serves as a convenient option for investors who may need to adjust their investment portfolio or for those looking to participate in projects that have already closed. It provides an avenue for investment flexibility and potential opportunities for both buyers and sellers within the Goparity platform.
Goparity review summary
Goparity is a unique crowdlending platform that caters to a specific type of investor—one who prioritizes making a positive impact through their investments rather than solely focusing on high returns. The platform's emphasis on supporting impactful projects sets it apart from traditional crowdlending platforms.
One of the key advantages of Goparity is its accessibility, with a minimum deposit requirement of just €5. This makes it an ideal platform for individuals with limited funds or those who are new to investing and prefer to start with smaller amounts. Additionally, Goparity offers features like auto invest and a secondary market, which provide automation and increased liquidity to investors' portfolios.
However, it's important to note that Goparity's interest rates are relatively lower, averaging around 6%. Investors seeking higher returns may find better options elsewhere. Furthermore, Goparity's loan project maturity time tends to be longer compared to other platforms, with an average loan term of 3 to 5 years. Patience is required for investors aiming to build a larger investment portfolio on Goparity.
In summary, Goparity is a regulated and legitimate crowdfunding platform hailing from Portugal. If you prioritize supporting sustainable projects and don't mind the lower returns, Goparity offers a compelling option for investors looking to make a positive impact through their investments.
Goparity pros and cons
- Investing in sustainable and impactful projects that contribute to positive change.
- Low investment threshold, starting from as little as 5 EUR, making it accessible to a wide range of investors.
- Availability of a secondary market, providing opportunities for investors to buy and sell investments.
Points to consider:
- Lower returns compared to investing on other crowdfunding or P2P platforms.
- Longer average loan term of 3 to 5 years, which may require more patience compared to other platforms.