KapitalBoost Crowdfunding Platform - Review for Investors

KapitalBoost Crowdfunding Platform - Review for Investors

Excellent crowdfunding investment platform with no investor fee, competitive returns and strong ethical standards

Good for

  • Investors who want to avoid service fees
  • Investors seeking ethical investments in SMEs using a crowdfunding platform
  • Investors with a preference for short-term investments

Bad for

  • Investors seeking business loan or equity investment opportunities
  • Investors seeking long-term investment opportunities

Editor's Rating

4.5/5.0

KapitalBoost is a great P2P/Crowdfunding investment platform. The Islamic platform is the only such platform that provides SMEs with the means to finance asset purchases. KapitalBoost generates competitive annual returns (15-24%) for investors. Additionally, the platform is the only one in Singapore that does not charge an investor fee.

Summary of KapitalBoost Investment Platform
No investor service fee
Asset purchase investment opportunities
Competitive returns (15 - 24%)

Table of Contents

What Makes KapitalBoost Stand Out to Investors

Unlike other platforms, KapitalBoost does not charge SMEs interest. Due to the unique nature of its asset purchase agreements, in which investors pool money to purchase an asset for SME and subsequently sell it to the SME, investors instead receive a percentage of the profit earned by SMEs in each asset purchase agreement.The platform also offers invoice financing, without interest, instead with an invoice financing fee. The returns from these investments are competitive with returns from more traditional business loans offered by other P2P/Crowdfunding platforms.

Additionally, KapitalBoost is the only crowdfunding platform in Singapore without an investor fee. This saves investors a significant amount of money, as other platforms charge investors 15 - 20% of interest earned, or 1 - 8% of total repayment made by lenders.

Finally, investments made by KapitalBoost are ethically selective. The site uses a Shariah-focused screening process and does not allow SMEs related to weapons, gambling or SMEs that cause environmental harm to apply for funding.

On the flipside, the KapitalBoost platform does not offer longer term investments, and its asset purchase agreements are capped at S$150,000. These are two negative factors for investors that are hoping to find large, long-term investments through a P2P/Crowdfunding platform.

Investment Opportunities at KapitalBoost

KapitalBoosts offers investors, domestic and international, the opportunity to invest in SMEs through asset purchase agreements and invoice financing. While KapitalBoost does not always require lenders to back financing with collateral (assets to sell to repay lender in case of default), these types of investments tend to be safer than other unsecured investments, as they require proof of asset, work orders and invoices. To illustrate, these documents must prove that SMEs have demands for upcoming projects or have already completed work for customers. KapitalBoost's asset purchase agreements and invoice financing generally experience annualised returns of 18 - 24% and 15 - 20%, respectively, over 1 - 12 months.

For asset purchase financing, returns are based on profit ratio sharing agreements, rather than interest rates. First, the SME requests financing based on a required asset to complete a transaction for their customer. KapitalBoost investors pool money help the SME purchase the asset, which the company repays at the end of the financing period along with a percentage of the profit earned per the agreed upon profit sharing ratio.

Similarly, KapitalBoost does not charge traditional interest for invoice financing. Invoice financing requires SMEs to present an invoice for a good or service provided to a customer, indicating that the company expects to be paid. KapitalBoost becomes an agent for managing the invoice and investors receive a fixed fee from the SME for financing the project.

FeatureKapitalBoost Asset Purchase InvestmentsInvoice Financing
Annual Returns18 - 24% (based on profit)15-20%
Minimum Investment per ProjectS$500S$500
Investment Duration1 - 12 months1 - 2 months
Investor Service FeeNoneNone

Investor Eligibility Requirements

KapitalBoost has the fewest eligibility requirements of any other P2P/Crowdfunding investment platforms. For instance, it allows investors from any country to participate. The only requirement is the minimum investment per campaign, which is a relatively standard S$500.

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