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.
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.
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