Global insurance organization American International Group, Inc. (NYSE:AIG) has launched a new product for the global crowdfunding investment industry.
Crowdfunding Fidelity has been developed specifically to protect investors on equity crowdfunding platforms against the theft of issuer assets by issuer directors, officers, or general employees.
By subscribing to this product, platforms will enhance the value they can offer investors by offering protection against issuer fraud and build trust in this emerging sector.
The coverage is currently available to platforms in the UK and Canada. As other countries finalize regulations for companies to raise capital, this policy can be customized to local needs of equity-based crowdfunding platforms.
Eureeca, an equity crowdfunding platform registered in the UK and based in Dubai, has purchased the coverage and made the protection against issuer fraud available to investors. Launched in 2013, the platform focuses on providing deals from the Middle East, Europe, and Southeast Asia.