
Just launched- new insurance for startup investors - ock800
Are you an investor looking for a way to get some of your money back if the business you invest in fails? Are you an entrepreneur looking for a way to offer investors a chance to invest in your startup with less risk? www.assure.li
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gregmac
Does this company have a track record? What assurance is there to an investor
this startup will actually pay out?

Also, I'm rather curious about the math behind the business. (Note: I am a
programmer. I could best be described as having a low and/or dangerous level
of knowledge about investing).

If assure.li has 7 customers buy insurance for their $100k investment at 15%
(so +$15k insurance premium), they are making $105k. If one of those companies
"fails", assure.li now pays out $100k and now are left with $5k. If two
customers fail, assure.li is now down $95k.

It's pretty widely cited that nine out of ten startups fail. assure.li seems
to be betting that 90% _succeed_ : even splitting the difference and saying
50% succeed, it seems to me this company will run out of money very quickly.
An insurance company with no ability to pay claims is not a very useful
insurance company.

Or am I completely missing something here?

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MalcolmDiggs
_" An insurance company with no ability to pay claims is not a very useful
insurance company."_

Agreed. But useful or not, there's plenty of precedent for it! (Think AIG and
the credit default swap mess circa 2007)

