Assureli’s algorithm
and risk model helps angel investors make some money back on their investments even
if the business they invested in fails.
Originally from San
Antonio, Texas, Tarek Hassan from assureli, has always been an
entrepreneur. He graduated from the
University of Texas at Austin in 1998 and his first business, Surf Break, was a
partnership which he created with Southwest Airlines and American Airlines,
putting internet stations into their boarding areas (started in Austin airport
in 2002) to help increase the value of customer service for their passengers in
the boarding area.
Today he and his CTO,
Pat Luciano have created a new risk model for the insurance industry focusing
on startups. With the 2012 JOBS Act and
the SEC rules coming into place they are looking to help accredited and soon
unaccredited investors reduce their risks. The team includes two entrepreneurs, a
Mathematics professor, and three actuaries.
Assureli provides insurance
to investors of startup opportunities
The idea came from seeing
the large growth of entrepreneurs with great ideas and a growing number of
investors entering the market through crowdfunding. Assureli allows investors online or offline a
new alternative to investing. Instead of
investing your money and losing it all when the business you invested in fails
(which is a majority of the time) now the investor can pay a little extra with
Assureli’s premiums to insure your investment.
If the business fails within a certain time period, the investor can
make anywhere from 25%-75% of your investment back depending on when the
business fails. The premiums range from
10%-19% of the investment. The insurance
is non-transferable.
How does it work?
The
premium payment to assureli will range from 10% to 19% of the investment made
into the companies, based on risk of the segment. Higher risk industries such as the
food/hospitality industry will be closer to the 19% mark for example.
How does the investor receive
coverage in the event of a loss?
When
the business invested in, fails in
year 5, then 25% of the investment is returned to the
investor.
year 6, then 50% of the investment
is returned to the investor.
year 7, then 75% of the investment
is returned to the investor.
Under what conditions does it not
payout?
The
business is not determined to be a failure and funds will not be returned to
the investor when the company fails, if:
1.
Business does not show signs of at
least a 10% increase in revenue and customer base year-over-year, for the
previous 3 years in a row of operations.
2.
An investment equal to half of the
amount or more of the investment in question, is paid to the company on/after
the 3rd year anniversary date of the first investment, to help its growth.
3.
Investor inaccurately submits
information regarding the investment amount or the company the investment is
made into.
What do you think?
We have included a
very short survey and would like to request some feedback please. It will take you only 2-3 minutes at most,
it’s just a few quick questions, and it can provide the right feedback as we
move forward to offer you this service, sooner rather than later. Here is the survey link and a request for your
feedback. https://survey.zohopublic.com/zs/knCN9f
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