Munich Re now provides default risk insurance for Equidate
- Equidate Insurance Announcement
We’re incredibly proud to announce that we’ve arrived at an exclusive insurance and long-term partnership with Munich Re – one of the world’s leading insurance and reinsurance groups with $250B in assets – to underwrite the default risk of our investment pools.
At Equidate, we’ve built a marketplace for investing in late-stage startups. We passionately believe that our proprietary contracts for future transfer of shares enable a quick, low-friction, company-friendly approach. Our investor clients offer us this feedback with heartening regularity.
During thousands of conversations we’ve had with investors during the last couple of years, many have been reassured by our diligence and thoroughness - we have conducted thorough legal reviews and shareholder background checks to minimize risk of fraud, acquired powers of attorney from shareholders to enforce their contract obligation, and diversified our investment pools across a number of shareholders (rather than a single individual or group). Some investors have still hesitated at the default risk; but now, with Munich Re, we’ve added the final piece in that puzzle.
After investigating our structure, our contracts, and our risk-management processes, Munich Re has agreed to underwrite the default risk of our investment pools. If a shareholder commits fraud, attempts to default on their agreement, passes away, or declares bankruptcy, and this results in a loss of the principal of the overall investment pool, then Munich Re has promised to cover the shortfall in the Equidate investment pools. Also, in the event of default, contract enforcement efforts are backed not only by Equidate, but also by Munich Re.
This insurance solution is a crucial step towards ensuring that our investments are as safe as owning stock. The best part? This protection is completely paid for by us as the Insured, and included in our current fee structure going forward.
If you’d like to learn more regarding the structure, limits, exclusions, and coverage process, please see our longer insurance overview document.
We’re very much looking forward to the partnerships and investments this enables – just send us an email ([email protected]), and we’d love to get started on helping achieve your investment objectives, together.