The average annual interest rate on loans to SME's until now is 6.5% (before withholding tax). To estimate the value gain of our equity portfolio, we calculated the increase in Net Asset Value for all equity investments made via MyMicroInvest, which currently amounts to 24%.
First of all, we want to share and celebrate with you that all companies financed via MyMicroInvest are currently still active! Since investing in the equity of a company is considered risk capital, this can certainly be considered quite a feat. We believe this result is related to both our rigorous selection process and our co-investment principle. Having (a) professional investor(s) alongside the crowd ensures the benefit of industry-specific know-how, network connections and tailored advice, allowing the companies to perform better.
Check out below how the portfolio financed via MyMicroInvest has increased its net asset value by 24%.
The graph below shows the evolution of the net asset value (NAV) of all the equity investments made by the crowd through MyMicroInvest since its first investment early 2013. The NAV has increased mainly by the new investments closed by the crowd but also under the influence of the evolution of the valuations of the investments.
The valuation rules used by MyMicroInvest are the following:
- Every investment is valued at its investment value;
- If a corporate event (capital increase or sale of shares to third parties) establishes a new value for an investment, this investment is valued at this new benchmark;
- If the MyMicroInvest is informed of grave problems in an investment (such as insolvency), the valuation is reduced.
The graph below shows the evolution of the NAV compared to its investment value, on a 100 basis. At each NAV evolution due to changes in the valuation of specific investments, the increase or decrease of that valuation is reflected in this 100 based NAV evolution.