🌟 Which projects don’t make it to our listing? The less obvious reason

We rarely talk about the projects we decline and the reasons behind those decisions. Most of the time, we focus on the projects that have already passed the first stage. But we believe it’s just as important to shed light on the work happening behind the scenes.

🌟 Here’s one recent example:

A project from Greece came to us and immediately caught the team’s attention. The company had been in the market for several years and had already built a solid reputation. It operates in a highly competitive industry — automotive parts manufacturing — has a fairly large team, and most importantly, has substantial experience in the field. Its financial health was also in good shape.

And yet, we said no. Why?

🌟 The company did not have sufficient collateral, which meant there was no basic layer of downside protection for investors.

When we assess collateral, we look not only at whether it covers the requested amount, but whether it exceeds it, providing an additional safety buffer. And we assess it both at nominal value and at liquidation value — in other words, how much could realistically be recovered in a stress scenario, after haircuts, taking into account the legal structure, liquidity, and enforceability of the pledge.

That’s why a project can have a strong product, solid revenue, and a clear operating model, and still fail to make it to listing if its collateral is:

🌟 insufficient in size
🌟 too weak in quality
🌟 poorly structured
🌟 lacking enough recovery value

We choose projects where the business model, cash flow, and collateral together create a balanced investment structure. We call this risk discipline.

🌟 We currently have 5 projects open for your investments — each backed by a solid collateral base and a strong credit history. Make sure to give them a look.