Financing will help AI-based claim fraud software
company accelerate growth, scale business across legal and
insurance sectors
POMPTON
LAKES, N.J., April 17,
2024 /PRNewswire-PRWeb/ -- ClaimScore, the industry's
first and only provider of AI-based, real-time claim validation
software, today announced the closing of a $3.15 million seed funding round led by ROC
Venture Group, a private investment firm based in Naples, Florida. ClaimScore is the only
software solution dedicated to resolving the ever-expanding claims
fraud problem in class action settlements.
ClaimScore's advanced AI algorithm cuts
through the noise, identifying fraud in real-time so
legal teams can prioritize legitimate claims.
ROC Venture Group, which invests in early-stage technology
businesses, was drawn to ClaimScore's unique position in a niche
market within the legal industry. Fraud is prevalent
in 99% of consumer class action cases; ClaimScore's tech identifies
fraud with 98.5% accuracy. In 2023, companies paid out
$51.3 billion in class action
settlements. To date, ClaimScore has helped companies avoid
$340 million in fraudulent
payouts.
"ClaimScore addresses a massive gap in this space that we
weren't even aware of until we met the founders of ClaimScore,"
said Aaron Stafford, founding
partner at ROC Venture Group. "After a deep analysis of the space,
we quickly saw the potential for ClaimScore to disrupt and
level-set the class action space, solving a nefarious problem that
must be eradicated. It's in these niche corners of the tech
universe where innovative companies like ClaimScore are making huge
impacts, and that's exactly where we like to invest."
ClaimScore's seed round was oversubscribed by $1.15 million, highlighting strong investor
interest in the company's growth trajectory. The financing will be
used to fund ClaimScore's continued growth and general operations,
with a focus on expanding its offerings for law firms, in-house
counsel, and claims administrators.
ClaimScore founders have been on both sides of the courthouse
and leading class action administration firms. ClaimScore was
founded in 2022 by President Donald
Beshada, a 25-year class action litigator; CEO Bob Gallo, a serial entrepreneur and former
financial advisor; and Bryan Heller,
a founder and product owner for AI tech startups in both the
consumer and B2B spaces and former Penn State wrestler and jiu
jitsu world champion.
"We are incredibly excited to partner with ROC Venture Group as
we continue to grow ClaimScore," said Bob
Gallo, CEO of ClaimScore. "The legal industry faces a surge
of fraudulent claims due to AI. ClaimScore's advanced AI algorithm
cuts through the noise, identifying fraud in real-time
so legal teams can prioritize legitimate claims. We're making
claims processing, validation and fraud identification
faster than humanly possible to speed up the legal process and to
create unprecedented transparency for everyone. This funding round
empowers us to bring ClaimScore's benefits to the wider legal
community."
In December 2022, ClaimScore
secured an angel round of $1 million.
In addition to ROC's investment in the legal tech space via
ClaimScore, the firm has funded many other highly disruptive
companies in their respective verticals, ranging from HealthMe in
healthcare, Cadre in real estate, GrubMarket in food, and Recover
Athletics, which was recently acquired by Strava, in fitness.
About ClaimScore
ClaimScore offers the first and only tested and validated AI and
machine-learning-based anti-fraud software solution
for class action settlements. Designed to provide a transparent,
efficient, and cost-effective approach to the claims process,
ClaimScore's real-time solution is the gold standard in the class
action fraud industry. For more information, visit us
at claimscore.ai.
About ROC Venture Group
ROC Venture Group is a private investment firm based in
Naples, Florida, which invests in
early-stage technology businesses. The firm focuses on identifying
high-growth companies with passionate founders and disruptive
technologies. For more information, go to rocventuregroup.com.
Media Contact
Erin Harrison
press@claimscore.ai
203-610-9492
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