Innovation Insurance Group

  • About
    • Company Profile
      • Annual Reports
        • 2014 Annual Report
        • 2013 Annual Report
    • Ty R. Sagalow
  • Our Services
    • Expert Witness
    • InsurTech
    • Product Development
      • Product Development Case Studies
    • Directors and Officers Insurance
    • Cyber Risk Insurance
    • Bitcoin Insurance Agency
      • BitCoin 101
      • Bitcoins FAQ
      • Bitcoin Video Series
      • Publications and Interviews
  • News
    • Speaking Engagements
    • IIG in the News
    • Bitcoin Industry News
    • Events
    • World Risk and Insurance News
      • Web Series Hosted
        by Ty Sagalow
        • What’s New in Insurance?
        • Innovations in Insurance
      • Interviews of
        Ty Sagalow
    • Gallery
  • Leadership
    • Publications and Interviews
      • Innovation and Product Development
      • D&O Insurance
      • Cyber Risk Insurance
      • Reputation Risk
      • Bitcoin
    • Innovation
    • Emerging Risks
      • InsurTech
      • Reputation Risk
      • Crowdfunding
      • Bitcoin Risk
      • Cyber Risk
    • Thoughts from Industry Leaders
  • Clients
    • Clients
    • Testimonials
    • Partners
      • Advisen, Ltd.
      • Hanover Stone Partners, LLC
      • CLM Advisors
  • Lemonade Book
    • Book Store – Buy the Book
    • Book Overiew
    • Interviews with the Author
    • Book Signing Gallagy
  • Contact Us
You are here: Home / Emerging Risks / Crowdfunding: A New Way of Investing

January 23, 2013

Crowdfunding: A New Way of Investing

With Washington politicians pushing The Jumpstart Our Business Startups Act (JOBS) of 2012, organized crowdfunding is about to become a new way of investing in the near future.

Title III of the JOBS Act provide a registration exemption for limited-size offerings ($1 million per year) sold in small amounts to a large number of investors possible through the Internet. Basically, Crowdfunding will allow the average American to invest small sums of money into small businesses in their communities either as a loan or in return for a small equity stake in the company.  Currently, SEC regulations — written over 80 years ago — do not allow this type of investing.

Finalization of this exemption is still waiting for implementation regulations to be published by the Securities and Exchange Commission.  The original deadline for such publication was December 31, 2012 but the SEC is promising that there work will be done “soon”.

Meanwhile, states have stepped in to fill the gap.  Beginning with Georgia and Kansas, and now expanding to North Carolina, Wisconsin with others are not too far behind, states have adopted their own version “intrastate” securities-based crowdfunding.

Elsewhere in the Jobs Act, title II greatly expands the ability to issue private placement securities offerings including the lifting of the decades old prohibition of general solicitation and advertising.

These provisions can do much to enable small companies to raise funds and permit the “small investor” to get into some of the action previously available only to the large “well connected” investors.  But it doesn’t come without major concerns:

  • What does all this mean for the D&O industry?
  • What restraints will the SEC put on the will of Congress?
  • How useful will Intra-state crowdfunding be in the meantime?
  • What Insurance protection options exist today or should be created?

Filed Under: Emerging Risks Tagged With: crowdfunding

Innovation Insurance Group, llc

Offices at Short Hills
51 John F. kennedy Parkway,
First Floor West
Short Hills, NJ 07078
917-620-2174 (Ty's cell))
973-261-5624 (office)
contact@innovationinsurancegroup.com
tysagalow@innovationinsurancegroup.com

Expert Witness

Ty Sagalow head shotTy Sagalow's unique background in legal, underwriting, policy drafting and claims – and his designation as a “qualified insurance expert” by the United States District Court for the Southern District of California – offers attorneys an unparalleled resource in D&O, E&O and Cyber insurance coverage disputes. He was also named "Most Helpful Expert" in a recent $8.7M coverage decision.

Mr. Sagalow served as Chief Underwriting Officer and General Counsel for AIG Executive Liability (formerly National Union Fire Insurance Company of Pittsburgh, PA), the world’s largest carrier of Directors and Officers Liability and Professional Liability Insurance. As General Counsel, Mr. Sagalow personally wrote or led teams that wrote all the D&O policies and many of the professional liability policies that AIG produced between 1988 and 2000 – policies which continue to serve as the foundational wording for the D&O and professional liability policies in the market today. As AIG Executive Liability’s Chief Underwriting Officer, Mr. Sagalow was charged with all underwriting interpretations and decisions for AIG D&O/E&O policies. In 2009, Mr. Sagalow headed up the team that rewrote all D&O policies for Zurich North America.

Ty is a cum laude graduate of Georgetown University Law Center and holds a LLM from New York University School of Law.

Company Profile

Innovation Insurance Group is an insurance consulting firm and insurance brokerage founded by 30-year insurance executive, Ty R. Sagalow, former Chief Underwriting Officer, General Counsel and Chief Innovation Officer at AIG, and former Chief Innovation Officer at Zurich, NA and Tower Group. IIG focuses on three core practice groups: product development, expert witness services (primarily in the Management and Professional Liability areas), and bitcoin industry brokerage services.

Learn more about Ty R. Sagalow
Learn more about Innovation Insurance Group
Learn more about InsurTech Consulting
Learn more about Bitcoin Insurance Agency

Innovation Insurance Group, LLC BBB Business Review

Featured Topics

  • InsurTech
  • Innovation and Product Development
  • Directors & Officers Liability Insurance
  • Cyber Risk Insurance
  • Reputation Risk
  • Bitcoin Risk and Insurance
  • Emerging Risks
  • Interviews of Ty Sagalow
  • Gallery
  • Testimonials
  • Speaking Engagements

Featured Video Series

  • "What’s New in Insurance with Ty Sagalow"
  • "Innovations in Insurance hosted by
    Ty Sagalow"

Recent Speaking Events

  • Lawline How Is InsurTech Impacting the Insurance Industry? (Update) (8/16/23) (video)
  • The Future of Insurance (with Bryan Falchukc) (Video Podcast Aug 2022)
  • InsurTech Ohio Spotlight with Ty Sagalow (Podcast 5/10/22)
  • Meet the Godfather of Insurtech… (The Insurtech Leadership Podcast)(12/20/21)
  • Why Insurance Industry needs Lemonade Insurance-Style Business Models (Silicon Review, 2019)
  • CIIA Conference: Innovation, Culture and Technology
    May 13, 2021, Chili (Virtual)
  • Latin American Conference New Perspectives and Innovations for the Future of Insurance
    Nov 4, 2019, Mendoza, Argentina
  • All Speaking Engagements
  • 2016 Insurance Consultants Award
    2016 Insurance Consultants Award
  • 2017 Insurance Consultants Award
    2017 Insurance Consultants Award
  • 2017 Insurance Expert Witness of the Year
    2017 Insurance Expert Witness of the Year
  • AI 2017 InsurTech Consultant of the Year Award
    2017 InsurTech Consultant of the Year Award - AI International
  • 2018 Best Advisor Award – M&A Today
    2018 Best Advisor of the Year - M&A Today
  • 2018 Best Consulting Firm – Lawyers International
    2018 Best Consulting Firm - Lawyers International
  • 2018 Best Advisor of the Year - Corporate USA Today
    2018 Best Advisor of the Year - Corporate USA Today
  • 2018 Insuretech Consultant of the Year - Business Excellence
    2018 Insuretech Consultant of the Year - Business Excellence
  • 2019 50th Fasting Growing Company
    2019 50th Fasting Growing Company

Copyright © 2024 Innovation Insurance Group · Offices at Short Hills · 51 John F. Kennedy Parkway, First Floor West · Short Hills, NJ 07078 | Site Map | Log in