ClubFunding AI Overview on 11/2025

Overview – ClubFunding Investment Platform 🏦💡

ClubFunding is a leading French alternative investment platform specializing in real-estate crowdfunding via bond issues. Founded in 2015 and now operating under a pan-European license, it allows investors to finance property development projects and earn high fixed interest (around 8–10% annually). The platform has grown rapidly – over €2 billion has been raised and invested through 1,200+ project financings as of 2024 – making it one of the largest in Europe. Key advantages include attractive yields, monthly interest payouts, and backing by major investors (e.g. Bpifrance) which adds credibility. However, risks are significant: loans are illiquid, and a recent downturn in the property market has led to widespread delays in repayments (over half of projects) and heightened default risk. The platform is fully regulated in France, but investors face the risk of capital loss if developers fail – making due diligence and diversification vital ⚠️.

Product Offering – Bond Investments in Real Estate 🏗️💶

ClubFunding’s core product is short-term corporate bonds funding real estate projects (a form of secured debt investment). Investors subscribe to bond issues by property developers or SMEs to finance activities like residential renovations, new construction, or land development. Each bond has a fixed interest rate, typically 8% to 12% annual yield, and a defined term – usually 12–36 months (often with bullet repayment at maturity). Some projects pay monthly interest coupons, providing regular cash flow to investors. The minimum investment is €1,000 per project (standard for French crowdlending), and there is no formal maximum per investor beyond regulatory limits. ClubFunding recently introduced “immobilier fractionné” (fractional real estate bonds) with longer durations (5–10 years) and variable returns: these bonds pay moderate fixed coupons plus a share of any capital gain on the underlying property at exit. All investments are unlisted securities, and investors become creditors of the project company under French law. Geographically, deals are concentrated in France (major cities and occasionally overseas territories), but the platform has begun funding projects in neighboring European countries as well. While many projects are backed by some form of security (sûreté) – e.g. a second-rank mortgage or a personal guarantee from the developer – these are not guarantees of repayment and often rank subordinate to bank loans. Major risk factors include the possibility of default (if a developer goes bankrupt, investors can lose most or all of their capital), project delays (which postpone interest and principal payments), no liquidity (bonds cannot be easily sold before maturity), and real estate market risk (downturns can erode project revenues and collateral value). Investors should be prepared for potential total loss in a worst-case scenario and only invest funds they can afford to lock in and risk.

Company Background – Founders, Group Structure & Regulation 🧐🏢

ClubFunding was co-founded by David Peronnin and David El Nouchi in Paris, building on a family financial business dating back to 1994. Gautier Allard joined later and serves as CEO of the crowdfunding unit. The company has evolved into ClubFunding Group, a diversified financial services firm with 7 subsidiaries. Apart from the crowdfunding platform (ClubFunding SAS), the group includes ClubFunding AM (an asset management arm launching real estate funds), CF Profina (specialist in overseas tax-incentive investments, e.g. Girardin industriel), CF 2C (a debt collection and receivables purchase firm), and other units handling wealth management and project financing. In September 2022, ClubFunding raised €125 million in equity from four prominent investors – Florac Investissements, Peninsula Capital, EMZ Partners, and Bpifrance – who took minority stakes while the founders retained control. This capital injection has supported the company’s expansion into Europe (with initial focus on Benelux, Spain, Germany) and development of new investment products. Regulation & licenses: ClubFunding is authorized and regulated by the Autorité des Marchés Financiers (AMF) in France. It operated as a Conseiller en Investissements Participatifs (CIP) and IFP (crowdfunding intermediary) until late 2023. In November 2023, it obtained the new European Crowdfunding Service Provider (ECSP) approval – known in France as PSFP (Prestataire de Services de Financement Participatif) – under registration number FP-2023-40. This license (supervised by the AMF and ESMA) allows ClubFunding to passport its services across the EU under unified rules. The group’s asset management subsidiary, ClubFunding AM, is separately licensed by the AMF as a portfolio management company (GP-20000025 since 2020). Compliance: ClubFunding is a member of the French crowdfunding association Financement Participatif France, and it complies with KYC/AML laws (investors must pass identity and fund-origin checks). The company’s headquarters is in Paris with ~170 employees (2023) across France and overseas territories. Overall, ClubFunding presents itself as a pioneering, regulated player in real estate fintech, but its recent challenges test its reputation for reliability.

Company Volumes & Performance Metrics (2024–2025) 📊📈

ClubFunding’s platform has financed a very high volume of projects, but is now seeing strain in performance. Since inception, it has raised approximately €1.7 billion in total for 1,200+ real estate financings by early 2024, and by late 2025 the group claimed over €2.5 billion funded across ~1,320 projects. This explosive growth (e.g. +55% in 2022 with €424.5 million funded that year alone) cemented ClubFunding’s position as the #1 real estate crowdfunding platform in France. As of 2022, over 15,000 investors (retail and institutional) were using the platform, and by 2023 the investor base reportedly expanded to 40,000+ individuals thanks to distribution partnerships with advisors. Project outcomes: To date more than 300 projects have been repaid to investors, and historically ClubFunding boasted zero investor losses – for years, no project had resulted in a capital default. Average returns on completed deals have been around 9–10% annualized. For example, in 2022 the platform delivered an average 10% gross yield to investors and paid out €42.5 million in interest. Many long-time users report portfolio IRRs in the high single digits to low double digits (e.g. ~9.4% according to one user’s 87-investment track record up to 2022). However – ⚠️ red flags: since 2023 the metrics have deteriorated sharply amid a real estate slowdown. Default and delay rates have surged: as of Sept 30, 2025, only 0.01% of funded capital was formally declared lost so far, but a massive 31.05% of outstanding loan volume was in serious default (over 6 months late). In total, roughly 60% of active projects are delayed or under insolvency proceedings (either moderate delays, major delays, or officially in safeguard/receivership), indicating widespread distress. For context, at the start of 2024 the default indicator was near 0% and delays <9% – the jump to ~31% defaults by late 2025 is alarming. Investor returns are now at risk: Many loans have stopped paying monthly interest, and some may only return partial principal after long restructuring (if at all). The average realized return will likely fall if current defaults crystallize into losses in 2024–2025. Active investors: ClubFunding still has an active community (tens of thousands of users), but confidence has been shaken by these figures. The platform’s Trustpilot rating stands around 3.8 out of 5 (as of late 2025, “Great” with 54% 5-star vs 17% 1-star), reflecting mixed experiences. Bottom line: ClubFunding achieved impressive scale and past performance, but latest results show elevated risk, requiring investors to be more cautious and patient regarding returns. Always note the dates on performance data – e.g. the 2022 return of ~10% is not guaranteed going forward given changing conditionsClubFunding’s platform has financed a very high volume of projects, but is now seeing strain in performance. Since inception, it has raised approximately €1.7 billion in total for 1,200+ real estate financings by early 2024investissements-faciles.com, and by late 2025 the group claimed over €2.5 billion funded across ~1,320 projectsclubfunding.eu. This explosive growth (e.g. +55% in 2022 with €424.5 million funded that year aloneobjectif-renta.com) cemented ClubFunding’s position as the #1 real estate crowdfunding platform in France. As of 2022, over 15,000 investors (retail and institutional) were using the platformpresse.bpifrance.fr, and by 2023 the investor base reportedly expanded to 40,000+ individuals thanks to distribution partnerships with advisorspierrepapier.fr. Project outcomes: To date more than 300 projects have been repaid to investors, and historically ClubFunding boasted zero investor losses – for years, no project had resulted in a capital defaultobjectif-renta.com. Average returns on completed deals have been around 9–10% annualized. For example, in 2022 the platform delivered an average 10% gross yield to investors and paid out €42.5 million in interestobjectif-renta.com. Many long-time users report portfolio IRRs in the high single digits to low double digits (e.g. ~9.4% according to one user’s 87-investment track record up to 2022)trustpilot.com. However – ⚠️ red flags: since 2023 the metrics have deteriorated sharply amid a real estate slowdown. Default and delay rates have surged: as of Sept 30, 2025, only 0.01% of funded capital was formally declared lost so far, but a massive 31.05% of outstanding loan volume was in serious default (over 6 months late)argent-et-salaire.com. In total, roughly 60% of active projects are delayed or under insolvency proceedings (either moderate delays, major delays, or officially in safeguard/receivership), indicating widespread distressinvestissements-faciles.comargent-et-salaire.com. For context, at the start of 2024 the default indicator was near 0% and delays <9%argent-et-salaire.com – the jump to ~31% defaults by late 2025 is alarming. Investor returns are now at risk: Many loans have stopped paying monthly interest, and some may only return partial principal after long restructuring (if at all). The average realized return will likely fall if current defaults crystallize into losses in 2024–2025. Active investors: ClubFunding still has an active community (tens of thousands of users), but confidence has been shaken by these figures. The platform’s Trustpilot rating stands around 3.8 out of 5 (as of late 2025, “Great” with 54% 5-star vs 17% 1-star)trustpilot.comtrustpilot.com, reflecting mixed experiences. Bottom line: ClubFunding achieved impressive scale and past performance, but latest results show elevated risk, requiring investors to be more cautious and patient regarding returns. Always note the dates on performance data – e.g. the 2022 return of ~10% is not guaranteed going forward given changing conditions.

Risk Management & Project Selection Process 🔎🤔

Project selection at ClubFunding combines financial analysis with on-the-ground real estate vetting, but it has faced criticism for lax standards in recent years. The platform focuses on professional real estate operators (promoteurs, marchands de biens) with projects needing alternative financing. Each potential borrower undergoes a multi-step due diligence: ClubFunding’s analysts review the project business plan (costs, sales forecasts), the developer’s track record, and key financial ratios. Internally, they evaluate 8 risk indicators for every deal (e.g. leverage, margins, presales rate, etc.) to determine if the project is sound. Only a fraction of deals pass and are presented to investors. ClubFunding also emphasizes “alignment of interests” – developers usually invest equity first and provide personal/corporate guarantees, so they are motivated to succeed. Collateral and guarantees: Most loans are unsecured bonds, but many are accompanied by sureties like a first-demand guarantee from the sponsor’s holding company or a junior mortgage on the property. However, these measures are not foolproof; investors are cautioned that even a mortgage may not fully cover losses if a project fails (foreclosure can be costly and value-destructive). The credit committee at ClubFunding ultimately approves projects and sets terms (interest rate, duration) commensurate with the risk. Notably, during the 2020–2021 boom, ClubFunding scaled up volumes significantly – some industry observers now believe project selection was “too loose” in that period, leading to the large number of 2022–2023 defaults. The company has acknowledged the challenging market and says it’s tightening criteria going forward. Risk scoring: Unlike some platforms, ClubFunding does not publish a simple letter-grade risk score for each project; instead, investors must review the detailed offering document. These documents include the developer’s financial statements and a description of project risks. Sector/geo focus: The platform mostly funds residential or mixed-use real estate in France (especially Paris and major cities), ensuring diversification across locations. In 2023 it also began cross-border deals in nearby countries to diversify geographically. It tends to avoid highly speculative sectors, focusing on projects with clear exit strategies (sale of units, etc.). Monitoring and default management: ClubFunding’s team monitors projects through their development timeline – they receive progress reports from borrowers and check that interest payments are made. If issues arise, the platform may intervene (e.g. helping a developer find buyers or new financing). They also leverage their CF 2C subsidiary for handling late payments and legal recovery. Despite these efforts, many investors have criticized the monitoring as insufficient: updates were irregular and often sparse, especially once a project runs late. Until mid-2024, some delay notices came very last-minute, and the platform’s communication on troubled deals was described as lacking transparency. ClubFunding has recently implemented new digital tracking tools and increased staff on its recovery team to improve this (and some users noticed slight improvements in late 2024). Risk transparency: The platform now publishes performance indicators on its site (default and delay rates, etc.) and emphasizes the importance of diversification across many projects. Overall, while ClubFunding does conduct thorough initial analysis and is actively managing defaults, the unprecedented wave of problem loans has exposed flaws in its risk processes. Investors should perform their own careful analysis of each project (the platform encourages this by sharing financial info) and not rely solely on the platform’s past success.

Platform Features & Functionality – User Experience 🔧📱

ClubFunding’s platform offers a fairly straightforward, no-frills user experience focused on primary market investments. There is no auto-invest feature or robo-allocation – investors must manually browse and subscribe to each new project. In fact, popular offerings often sell out within seconds or minutes, so being quick to invest is crucial (a point many experienced users stress).The platform currently does not provide a secondary market or internal exchange; once you invest in a bond, you generally must hold it until it’s repaid at maturity (there is no built-in way to sell your claim early). This illiquidity is a major consideration. On the positive side, the investor dashboard is clear and functional. After logging in, users can see their portfolio at a glance with charts and stats showing: total invested amount over time, interest and repayments received, and portfolio breakdown by project type, duration, and yield. Each project you’ve funded is listed with its status (ongoing, repaid, delayed, etc.) and payment schedule. Notifications: ClubFunding sends email alerts for new investment opportunities (though, as one blogger noted, new users initially had to email to get added to the distribution list). The project description pages, while somewhat brief compared to competitors, contain the key details and downloadable prospectus PDFs. Languages and access: The website is available in French and English (and since obtaining the ECSP license, it welcomes investors from across the EU). The platform supports only EUR currency investments, with payments via SEPA bank transfers. A noteworthy aspect is that ClubFunding does not use a client wallet system – instead of pre-funding an online account, investors authorize a direct debit from their bank for each investment. This means funds stay in your bank until a deal closes, and interest payments are deposited directly to your bank account (no need to withdraw from the platform). Many find this convenient, though it requires having the cash on hand when committing. Tools and extras: There is no built-in “auto-diversification” tool beyond manually choosing different projects. The platform doesn’t offer insurance or a buyback guarantee – you bear the project risk directly. However, ClubFunding’s due diligence and any collateral are meant to mitigate risk per project (not guaranteed, as discussed). Reporting: Investors can download account statements for tax purposes, and interest income is reported annually. The platform’s interface is described as “basic but effective” – it’s not the most modern fintech design, but it is stable. Some experienced users have wished for more advanced features like project filtering, but for now one mostly navigates a simple list of available deals. Support: ClubFunding provides customer support via email and phone, and during the investment process they may call to verify large subscriptions. They have also added an education center/FAQ on the site (covering how crowdfunding works, risk reminders, etc.). In summary, ClubFunding’s functionality covers all essentials to invest and monitor investments, but lacks secondary liquidity or automated investing, putting the onus on investors to be proactive. Given recent issues, many users also desire improvements in transparency tools – the company has begun rolling out enhanced fund tracking for projects to give investors more visibility into how their money is deployed.

Fees & Costs – Platform Pricing Model 💰✂️

ClubFunding has a very investor-friendly fee structure – in fact, individual investors pay no direct fees to use the platform. There are €0 fees for account opening, investment subscription, and annual management. If you invest €1,000 in a project, the entire amount goes to work earning interest; the platform does not take a cut from investors’ principal or interest (gross interest is paid to you and then taxed, but no fee). There are also no performance fees or carry – all returns belong to investors. The only “cost” investors face is the French flat-tax withholding on interest (30% for residents, see Taxation below). So how does ClubFunding earn money? The business model charges fees to the project sponsors (borrowers). ClubFunding invoices the developer a success commission on funds raised – typically a percentage of the loan amount (industry norm for real estate crowdfunding in France is about 5–10% fee to the borrower). For example, on a €1 million raise, the developer might pay ~€50k–€80k to ClubFunding upon success. This incentivizes the platform to successfully fund projects and ensure they perform (so that the platform’s reputation remains strong). Additionally, there may be some ancillary fees to borrowers such as arrangement fees or extension fees if a loan goes beyond schedule, but these are not charged to investors. Transparency: ClubFunding is relatively transparent about this model – it openly states that investors are not charged and that the “platform is remunerated exclusively by the project owners”. The exact commission rate is not published on each deal, but borrowers obviously factor it into their cost of capital. No hidden costs: Investors should note there are no fees to withdraw funds either – interest and repayments are automatically sent to your bank net of tax, without withdrawal charges. In case of currency conversion (for non-Euro zone investors), your own bank might charge an FX fee since ClubFunding deals in euros, but ClubFunding itself doesn’t charge FX or any other usage fees. Fairness: Because all investors receive the same terms on a given project, there are no differentiated fees – a small investor and a large investor get the same rate and no fees. This simple fee structure is a big plus 👍 for ClubFunding, as some other platforms charge investors management fees or transaction fees. Summary: €0 investor fees; all platform revenue comes from issuer fees (which motivates ClubFunding to bring a steady pipeline of quality projects to attract investors). This model aligns the platform’s interests with investors to some extent, though one must beware it can also encourage volume growth at the expense of quality (a potential issue that arguably materialized in 2021–22). On balance, ClubFunding’s pricing is very competitive and transparent, with no cost to try the platform aside from the capital you invest.

Negative Publicity & Issues – What Investors Should Know ⚠️📰

In recent months, ClubFunding has encountered significant negative publicity due to project failures and investor complaints. Multiple deals have faced severe delays or default, leading to frustration among users and critical coverage on blogs and forums. For instance, an independent review in late 2023 bluntly asked if ClubFunding is “a platform losing credibility”c. Here are the key issues that have been raised:

• High default rates and delays: As discussed, over 30% of outstanding loans are in default (payments overdue >6 months) and ~60% of projects are running late. This is far above the industry average and a dramatic shift from ClubFunding’s previously stellar record. Investors have reported portfolios where 4 out of 5 projects are delayed, and 3 have completely stopped paying coupons. Some projects have exceeded their planned term by over a year with no clear resolution, eroding investor trust.

• Communication and transparency failures: A frequent complaint is the lack of clear communication from ClubFunding when things go wrong. Users claim that updates disappear for months on troubled projects, emails go unanswered, and the website’s information on delayed projects is minimal. One investor lamented: “No news at all on projects with late payments… the site doesn’t even work properly. Lack of professionalism and poor project selection.” Such feedback indicates investors felt left in the dark about what is being done to recover their money. ClubFunding has acknowledged the need to improve and has started giving more frequent updates in 2024, but many consider the transparency still insufficient.

• Notable project failures: Several high-profile defaults have rocked the platform. Case “DMVIP”: This was a large multi-project developer (name obfuscated here) that went into insolvency owing ClubFunding investors substantial sums. Worse, it emerged that mortgages which were supposed to secure investors’ interests had not been properly registered with notaries, contrary to what the plan stated. This serious oversight meant investors lost critical collateral – a “gross error” that some say misled investors in voting on the restructuring plan. Case “Groupe Acantys”: Another developer financed on ClubFunding entered judicial recovery, and it later became known that Acantys had a poor reputation and financial warnings for years prior. Investors question why ClubFunding’s due diligence didn’t flag these issues (suggesting potential negligence in background checks). Additionally, one project called École Fragonard offered a harsh workout: investors were asked to accept just 15% of their capital back (no interest) as a settlement – essentially an 85% loss – or face likely getting nothing. These cases are extremely troubling for investors and highlight the real possibility of large losses, despite earlier assurances of guarantees.

• Investor sentiment and reviews: The public reputation of ClubFunding has suffered. On Trustpilot, while the overall score is 3.8, recent reviews skew negative – users in 2025 cite “many projects not paid” and express fear of losing money. On French investment forums and YouTube, ClubFunding went from being praised as the top platform to being cautioned against. Some users even suspect the platform of trying to artificially boost its image with planted positive reviews, as a spate of 5-star comments appeared amidst the wave of criticism. Whether or not that is true, it shows the level of mistrust in the community.

• Regulatory or legal troubles: So far, there have been no official sanctions announced against ClubFunding by the AMF. The platform remains licensed and in good standing with regulators, which are aware of the sector’s difficulties generally. However, the AMF and consumer press have started warning about risks in real estate crowdfunding broadly. There are hints that if ClubFunding doesn’t resolve its issues, legal actions by investors could emerge (for example, if mismanagement like the unregistered mortgage is proven, it could lead to liability). As of late 2025, it appears ClubFunding is working through defaults case by case, and no public regulatory enforcement has taken place.

In summary, ClubFunding has been hit by a wave of negative events in 2024–2025: many delayed or defaulted projects, poor communication, and a resulting loss of confidence among some investors. ⚠️ These are material red flags. Prospective investors should be aware that the platform is going through a “crisis” period (as one insider termed it) – caution and thorough research are absolutely necessary. It’s advisable to invest smaller amounts per project, scrutinize each deal’s risk, and monitor updates closely. ClubFunding’s team is taking steps to improve (they claim to be actively aiding distressed projects and enhancing transparency), but until a solid track record of successful recoveries is established, the platform carries higher risk than its past reputation suggested. Existing investors are strongly sharing experiences to warn newcomers: do not treat the 8–10% yields as guaranteed – problems have surfaced that could result in losses. On the other hand, if ClubFunding manages to turn around these issues (e.g. via better recoveries or more prudent new deals), it might restore trust. For now, stay vigilant when considering this platform.

Success Stories & Milestones 🏅🚀

Despite current challenges, ClubFunding has notable success stories and achievements that underscore its prominence in the fintech investment space:

• Explosive Growth and Market Leadership: ClubFunding quickly rose to be the largest real estate crowdfunding platform in France by volume. It crossed €100 million lent in a single year by 2020, then grew 120% in 2021, and funded over €424 million in 2022 (a record in the French market). By mid-2022, the platform had financed 700 projects, with 300 exits already completed – an unprecedented scale in this sector. This momentum earned ClubFunding recognition in France’s tech ecosystem; it was selected for the French Tech 120 / Next40 program in 2023, marking it as one of the country’s top high-growth startups.

• Institutional Backing – €125M Fundraise: A major milestone was the September 2022 capital raise of €125 million. This is one of the largest funding rounds ever for a European crowdfunding platform. The investment came from esteemed firms (Florac, Peninsula, EMZ) and Bpifrance, the French public investment bank, which gave a strong vote of confidence in ClubFunding’s model. The fact that founders retained control while bringing in these partners shows a balance of entrepreneurial vision with professional governance. The funds are being used to expand internationally and develop new products (e.g. the long-term fractional bonds and other secured investments). This fundraising success is a positive indicator that sophisticated investors saw value in ClubFunding’s business.

• International Expansion: Off the back of the ECSP license and new funding, ClubFunding has started to make its mark beyond France. By late 2022 it had already financed projects in Benelux, Spain, and Germany. In 2023, it reportedly opened offices in Spain and Portugal to source deals locally. This positions ClubFunding to offer investors geographic diversification and tap larger markets. While results of this expansion are yet to be seen, it is a milestone demonstrating growth ambition.

• Product Innovation: ClubFunding hasn’t stood still in terms of product offerings. In 2021, it launched ClubFunding Asset Management which created a €30 million real estate investment fund (FCPR) that co-invests alongside the platform – thus enabling another channel for investors (especially professionals) to participate with a managed fund approach. In 2023, ClubFunding AM debuted a new SCPI “Vitality” (a real estate fund focused on wellness & sports facilities). During that launch, the company highlighted that over 40,000 investors were already in its community and that it had signed 300+ distribution agreements with financial advisors, showing strong B2B partnerships. These product launches indicate the platform’s evolution from pure crowdfunding into a broader investment group. Winning regulatory approval for these (AMF fund approvals are rigorous) is also a success in itself.

• Awards & Recognition: ClubFunding has received industry accolades such as being ranked the #1 crowdfunding platform in France by various finance media in 2020–2022. It often tops “best of” lists for real estate crowdfunding due to its volume and (historically) low default rate. The inclusion in French Tech’s Next40 in 2023, as mentioned, is a prestigious recognition, highlighting ClubFunding among France’s elite tech scale-ups. The platform has also been featured in multiple financial press articles as a pioneer of alternative property financing, bringing mainstream attention to crowdlending.

• Investor Success Stories: Many early investors report positive outcomes – numerous projects were completed on time over 2015–2021, delivering the promised ~9–11% returns. For example, one long-term user shared that he had 87 investments with 18 already reimbursed at ~9.4% average return, calling ClubFunding “one of the best platforms on the French market.” Moreover, no investor lost money from 2015 up until 2023, which is a significant achievement (all loans were either repaid or in recovery without principal loss in that period). This track record, while now facing challenges, showed that the model can work successfully. ClubFunding also pioneered monthly interest payments in crowdfunding, which many investors appreciated as it created a regular income stream (as opposed to some platforms that pay only at the end).

In summary, ClubFunding’s success stories lie in its rapid growth, innovation, and previously strong performance. It transformed from a small startup to a financial group managing billions and attracted top-tier partners. These achievements underscore that, at its best, ClubFunding has been a high-impact fintech platform unlocking real estate investments for thousands of people. Going forward, the hope is that the company can solve its current issues and add a chapter where it successfully navigates the downturn – which would itself become a success story of resilience if realized. For now, investors should weigh both the past successes and present difficulties when evaluating ClubFunding.

Is ClubFunding safe and legit?

ClubFunding is a legitimate, regulated platform under French and EU law. It’s authorized by the AMF and now holds an ECSP/PSFP license (since 2023) allowing it to operate across Europe. This means it meets regulatory standards for transparency, capital, and conduct. Investor funds go directly to projects (via a supervised payment institution), not held by ClubFunding itself, adding safety. However, “safe” is relative – the investments are risky. While the platform isn’t a scam and has a solid operating history, you can lose money if projects default. There is no guarantee or insurance on your investment, and these are not bank deposits. So, ClubFunding is trustworthy as a service provider, but each investment carries risk. Always do your due diligence on projects.

What returns can I expect?

Historically, ClubFunding projects offered annual yields around 8–12%, and until recently investors were realizing roughly 9–10% net returns on average. In 2022, for example, the average paid out to investors was 10%. Going forward, expected returns per project are usually in the high single or low double digits (the platform often advertises ~7% to 12% range). Keep in mind these are gross rates before taxes. Also, higher return projects typically carry higher risk (e.g. less proven developers or second-rank liens – remember the adage: “higher yield = higher risk”). It’s wise to assume you might not achieve the full advertised return on every project – some could default or be late. If defaults occur, your actual portfolio return could be lower. But if all goes well, many investors have indeed earned around 9–10% annually.

What are the main risks?

ClubFunding investments carry several significant risks:

• Default Risk: The biggest risk is the borrower fails to repay. If the real estate project flops or the developer goes bankrupt, investors may lose a large portion of their principal. While projects often have guarantees (mortgages, etc.), in a default scenario you might recover only part after legal proceedings, or nothing in worst cases. Total loss of the invested amount is possible (though historically rare, it’s now a real concern given some ongoing defaults).

• Illiquidity: As mentioned, you cannot easily exit before term. There’s no secondary market, so you are stuck with the investment even if you change your mind or need cash. This also means if a project is extended or delayed, your money is locked in longer than expected.

• Delay Risk: Even without full default, many projects face delays in payments. You might not receive interest for months if the borrower is in trouble, and maturity can be pushed back. This can hurt your expected returns and liquidity (and in the interim you’re earning no interest on late payments unless penalty interest is imposed, which isn’t guaranteed).

• Real Estate Market Risk: If property prices fall or sales slow down (like in the current market dip), projects might struggle to refinance or sell units, causing financial stress. Your investment’s success is tied to real estate market conditions. An economic downturn can spike defaults – exactly what seems to be happening now.

• Platform Risk: While the platform is regulated, there is some risk if ClubFunding (the company) were to fail. However, even in that case, the loans are contracts between you and the borrowers; typically an administrator or trustee would take over servicing them. Your money isn’t held by ClubFunding, so platform bankruptcy would be disruptive but not necessarily mean you lose your investments – they’d still run their course with oversight. Nonetheless, it could complicate communications.

• Concentration Risk: If you put too much into one project or one developer, your risk is higher. It’s possible one developer has multiple loans – e.g. if that developer collapses (as happened with a big one on ClubFunding), you could have several investments all go bad at once. Diversifying across many projects and ideally across different platforms can mitigate this.

• Regulatory Changes: A minor risk – changes in law or crowdfunding regulations could affect how the platform operates or the tax treatment of your investments. With the new EU regime, the landscape is evolving but largely for the better (more protection).

In essence, these are high-yield, high-risk investments. It’s not like a savings account – you should be prepared for some projects to encounter trouble. Many investors manage risk by investing small amounts in many deals (e.g. €1k across 20 projects rather than €20k in one) to spread default risk. Always read the details on each project’s risks (ClubFunding provides a section on project risk factors in each prospectus). And only invest an amount that, if worst-case happens and it’s lost, it won’t derail your finances. While the majority of ClubFunding projects historically succeeded, the current default uptick shows the risk is real. Go in with eyes open, and you can potentially earn solid returns commensurate with these risks.