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Tribe Funding Analysis

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Last updated in June 2022.

What is Tribe Funding?

Tribe Funding is a somewhat unusual platform - it doesn’t offer investment directly but aggregates projects from multiple marketplace lending platforms. It’s a fresh innovation, launched in 2021 with headquarters in Estonia. Investors have funded €0.11m worth of loans to date via the platform - see Tribe Funding statistics for more historical performance insights.

Key Takeaways

  • An emerging player with a unique business model, wholly owned by the founders
  • Variety of investment opportunities in 15 markets and from 13 partnering platforms
  • Returns highly dependent on investors’ choices; no good performance statistics available

Who is Behind Tribe Funding?

Aleksandr Pirh and Igor Demchakov founded the platform and hold the executive roles of Managing Director and Strategic Executive. They are also Tribe’s sole shareholders.

It’s important to track which platforms cooperate with Tribe, i.e., whose investments can be accessed via the aggregator. At the moment, deals from 13 European platforms are available to investors. While most are small or emerging platforms, a few high-volume and more recognisable originators have also joined Tribe - most notably, the Spanish Housers and the French Raizers.

Tribe Funding's Investment Product

Tribe doesn’t have its proprietary investment product - it simply collects the funds and aggregates deals from various platforms in one place. Therefore, the variety of investments is quite large and depends on what the partnering platforms offer. Investors can choose between different real estate loans, business and agricultural loans, and green investments. Almost half of the platforms (six) come from Spain, while the rest are headquartered in the Czech Republic, France, Germany, Latvia, Lithuania, the Netherlands, and Portugal. Since some operate across borders, investments come from a total of 15 different countries. You can view all Tribe live projects directly at P2PMarketData.

No auto-invest feature or secondary market is offered. Tribe provides its own risk assessments on both the investment originator and each individual project.

How Much Can You Earn?

At P2PMarketData, based on API integration of all live and historical Tribe loans, we have calculated the average nominal interest rate at 9.21%. However, given the variety of deals available on Tribe, investors’ returns might vary significantly depending on individual risk tolerance and portfolio choices. The platform advertises returns of up to 14%.

The platform doesn’t charge any fees to investors, and it’s unclear whether any fees apply from the originating platforms. You can increase your initial returns by 0.5% using the bonus.

Other Considerations

Tribe founders emphasise that they launched the platform to counter some of the current shortcomings of the crowdfunding market. These include difficulty in diversifying the portfolio on one platform (platforms tend to specialise in specific countries, industries, and product types) and market fragmentation (many emerging players that are not always trustworthy). Tribe is supposed to work as a pool and a “filter”. As Tribe CEO told us in an interview, he hopes to expand this aggregation model into different financial products:

Our long-term play is to become an “umbrella” brand offering different services, including banking and stock exchange.