AIG aims to protect crowdfunding investments
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American International Group Inc. said Tuesday that it has launched Crowdfunding Fidelity, a product that targets the crowdfunding investment industry.
Crowdfunding Fidelity was developed to protect investors on equity crowdfunding platforms, which allow investors to fund start-ups, against issuer fraud, AIG said in a statement.
The product aims to protect investors from issuer asset theft by issuer directors, officers, or general employees which cause a direct loss to the individual investor, according to the statement.
“As a sector still in its infancy, equity crowdfunding platforms are only as strong as the confidence they instill in their investors,” Lex Baugh, president of liability and financial lines said in the statement. “This new product will help provide that confidence and help to support this asset class as it matures.”
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