Why would an issuer need insurance for a crowdfunding raise?
Bottom line: D&O for capital raises already exists. TigerMark is right-sized coverage at the right price for crowdfunding issuers.
Anytime a company raises outside capital and offers a security, the board or investors typically require D&O insurance. This isn't new. VC-backed, PE-backed, and institutionally funded companies have carried D&O coverage for decades. It's table stakes for professional capital formation.
The difference with crowdfunding is who you're raising from and how you're reaching them. Standard D&O policies were written for companies raising from accredited, institutional investors through private networks. Those policies often exclude claims arising from public offerings or general solicitation, which is exactly what Reg CF, Reg A+, and Reg D 506(c) involve.
That leaves crowdfunding issuers with two bad options: buy standard private company D&O that doesn't actually cover their real exposure, or overpay for full public company D&O designed for NASDAQ-listed companies.
That's why we built TigerMark. It's purpose-built for JOBS Act capital raises and covers what standard policies don't:
Claims from unaccredited investors in Reg CF and Reg A+ offerings
General solicitation exposure in Reg D 506(c) raises (where you're publicly advertising to accredited investors)
Specific compliance coverages for securities offerings not available elsewhere
Defense costs when an investor sues (securities litigation runs $250K-$500K+ before trial)
The ability to return investor principal if they allege wrongdoing
TigerMark also covers past or future Reg D 506(b) raises for traditional D&O risks, so your full capital-raising history is protected under one policy.
Beyond the coverage itself, TigerMark lets you showcase to your investors that your offering and company are safeguarded. You can display the TigerMark logo, share your policy summary, and demonstrate that you've taken the same governance steps that institutional-grade companies take.
Bottom line: D&O for capital raises already exists. TigerMark is right-sized coverage at the right price for crowdfunding issuers.
Anytime a company raises outside capital and offers a security, the board or investors typically require D&O insurance. This isn't new. VC-backed, PE-backed, and institutionally funded companies have carried D&O coverage for decades. It's table stakes for professional capital formation.
The difference with crowdfunding is who you're raising from and how you're reaching them. Standard D&O policies were written for companies raising from accredited, institutional investors through private networks. Those policies often exclude claims arising from public offerings or general solicitation, which is exactly what Reg CF, Reg A+, and Reg D 506(c) involve.
That leaves crowdfunding issuers with two bad options: buy standard private company D&O that doesn't actually cover their real exposure, or overpay for full public company D&O designed for NASDAQ-listed companies.
That's why we built TigerMark. It's purpose-built for JOBS Act capital raises and covers what standard policies don't:
Claims from unaccredited investors in Reg CF and Reg A+ offerings
General solicitation exposure in Reg D 506(c) raises (where you're publicly advertising to accredited investors)
Specific compliance coverages for securities offerings not available elsewhere
Defense costs when an investor sues (securities litigation runs $250K-$500K+ before trial)
The ability to return investor principal if they allege wrongdoing
TigerMark also covers past or future Reg D 506(b) raises for traditional D&O risks, so your full capital-raising history is protected under one policy.
Beyond the coverage itself, TigerMark lets you showcase to your investors that your offering and company are safeguarded. You can display the TigerMark logo, share your policy summary, and demonstrate that you've taken the same governance steps that institutional-grade companies take.