InvestSure, a start-up that covers shareholders from loss caused by allegations of management fraud and dishonesty, has celebrated its first year in the market.
Investors can request insurance when trading in shares online. If the share price drops more than 10% due to fraud, the insurance automatically pays out. Investsure had an excellent first year, fueled by its partnership with Easy Equities, securing their first funding of R 9.6 million from Compass Insure, Lireas Investment Holdings and venture capital firm 4Di Capital and beating an innovative US-based insurance startup for settling the world’s fastest known claim within 45 seconds.
The start-up was founded in May 2018 by Mbulelo Mpofana, Ignatious Nkwinika and Shane Curran.
“It’s been an incredible journey and we’re just getting started,” said co-founder Shane Curran. “Since we launched a year ago we have paid claims to investors for fraud accusations on EOH, MTN, Tongaat Hulett, Nepi Rockcastle, Fortress B, and Glencore and have given investors a boost of confidence when purchasing shares on the Johannesburg Stock Exchange.”
The company plans to continue its momentum by extending its reach to all South African investors through other local investment platforms. The company also has its eyes on expanding into global markets. The additional funding secured earlier in the year will assist in making the InvestSure product available to investors in new markets such as Australia and the United Kingdom.
“With first-time entrepreneurs having an 18% chance of succeeding, we are proud of this milestone and thank our investors and underwriter, Compass Insurance,” said co-founder Mbulelo Mpofana. “We believe we have created a truly innovative, one-of-a-kind product that provides real value to investors at an affordable price that doesn’t significantly erode investment returns where no claimable event occurs. We hope to help millions of South Africans invest with confidence and have peace of mind that their wealth is protected when buying shares in local companies.”