AIG Making Crowdfunding Safe For Cowards

"Crowdfunding insurance" is a thing now.

Let’s say you’d really like to see the porn industry expand from the San Fernando Valley into outer space. Or that you simply must see what lower Manhattan looks like from a slowly-rotating gondola 600 feet up. Or that it is a travesty of all that is true and good that poor Tom Hayes is still in prison and that he must be freed. Luckily for you, you can contribute directly to making all of the aforementioned happen. But, you say: “Crowdfunding? Isn’t that risky and unsafe and a sure-fire way for me to lose my money?” Why yes. Yes it is. But now you can make like Credit Suisse vis-à-vis rogue traders and insure your crowdfunded investment, thereby ensuring that the only money you’ll lose in such a scam will be your premiums.

The New York company is set to launch what it is calling “Crowdfunding Fidelity,” an insurance product developed to protect investors on equity crowdfunding platforms against fraud….

AIG will sell the coverage only to those portals it has determined have adequate processes in place to check out backgrounds of the businesses they allow to sell equity stakes, Mr. Baugh said.

AIG to Sell Crowdfunding Insurance, Looking to Make Money Off Investors’ Worries [WSJ]