Transparency Is a Core Value at Capital Circle
Capital Circle was the first crowdfunding platform to publish not only its successes but also its default rate — a key metric referring to entrepreneurs who are no longer able to meet their repayment obligations. This, too, is part of crowdfunding. That’s why we advise investors to allocate only a limited portion of their freely investable capital, and to diversify across multiple projects, risk classes, sectors, and maturities.
We are committed to building a transparent crowdfunding market. Under the European Crowdfunding Regulation, transparency regarding historical performance is a formal requirement. You will find our current performance statistics below.
⚠ Please note: Crowdfunding remains a relatively new and evolving market. Past performance is no guarantee of future results.
Key Facts and Portfolio Statistics (as of 1 August 2023)
Updated periodically
- First loan issued: 4 May 2014
- Total loans granted: €69,298,460 (575 projects)
- Total principal repaid: €37,481,946
- Total interest paid to investors: €7,582,741
- Outstanding principal: €30,130,103
- Definitively written off: 1.46% (27 projects – partial principal losses)
- Default rate: 1.47%
Based on 12 projects in arrears by at least one instalment for over 90 days in the past 48 months
- Projects fully repaid as agreed: 260
Current Loan Status (of 288 active projects)
- No payment delay: 249 projects, totalling €30,467,148
- In arrears: 39 projects, totalling €1,276,574
Breakdown of arrears:
- >45 days <90 days: 1.55% (5 projects)
- >90 days: 13.83% (8 projects)
- >180 days: 84.62% (26 projects)
All projects with arrears >90 days fall under the default rate and are under review by the KOM Group Security Trustee Foundation. These are marked as "Provisioned" and receive a yellow status on the platform.
What Is "Provisioned" (Default Rate)
Since early 2020, Capital Circle has used the "Provisioned" status (yellow) for projects over 90 days in arrears. While this does not necessarily indicate active debt collection or write-off, it signals that the borrower is in default. Communication for such projects (yellow = provisioned or red = written off) is handled via the KOM Group Security Trustee Foundation.
This status aligns with the European Crowdfunding Service Provider Regulation (ECSP) effective since 10 November 2021.
Definitions of Arrears: >45, >90, >180 Days
These refer to the sum of all overdue instalments (including interest) where the borrower is delayed by at least 45, 90, or 180 days from the agreed repayment schedule. Such projects are flagged as "In Default" and monitored by the KOM Group Security Trustee Foundation.
Definitions: Written Off vs. Provisioned
Provisioned or definitively written-off amounts (referred to in banking as a “Default”) include all loan amounts reasonably deemed unrecoverable. Partial write-offs are possible if only part of the principal has been repaid.
A bankruptcy does not automatically result in a total write-off if there’s a reasonable expectation that securities may still be enforced. These loans remain provisioned (not written off) until the realisable value of the securities is known — unless a mortgage has been registered.
Once the security enforcement process is completed and a residual principal remains unrecovered, the project is marked as completed and the remaining amount formally written off.
Portfolio Overview by Risk Class (Default & Write-Off Rates)
A current breakdown of default rates and write-offs by risk class and funding volume is available in our latest publication.
Glossary of Key Metrics
- Total Invested: The cumulative capital funded by investors since the platform’s launch (February 2014)
- Average Funding Time: The average number of days required for a project to reach 100% funding
- Projects Funded: Total number of projects successfully funded by investors since January 2014
- Average Net Return: Average return received by investors after deducting write-offs and costs, based on the formula defined by the Nederland Crowdfunding industry association
Example (1 May 2022):
- Average gross interest: 6.88%
- Minus default rate: 2.61%
- Minus platform fees: 0.15%
- Net return: 4.12%
Provisioned Projects on the Platform
Projects with the "Total Provisioned" status are visually marked with a red border on the platform. The outstanding amount is displayed in dark red and reflects the estimated economic value of the loan based on current expectations.
This estimate is performed by the KOM Group Security Trustee Foundation and includes status updates regarding enforcement. Only investors involved in a given project can access full details through their personal account.