ClaimScore, a first and only provider of AI-based real-time claim validation software, announced the closing of a $3.15 million seed funding round led by ROC Venture Group.
ROC Venture Group, a firm that invests in early-stage technology businesses, was attracted to ClaimScore’s unique position in a niche market within the legal industry. Fraud is present in 99% of consumer class action cases, and ClaimScore’s tech identifies fraud with 98.5% accuracy. Last year, companies paid out $51.3 billion in class action settlements. So far, ClaimScore has helped companies avoid $340 million in fraudulent payouts.
ClaimScore’s seed funding round was oversubscribed by $1.15 million. And the funding will be used for ClaimScore’s continued growth and general operations, focusing on expanding its offerings for law firms, in-house counsel, and claims administrators.
ClaimScore founders have worked 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 the consumer and B2B spaces and former Penn State wrestler and jiu-jitsu world champion.
KEY QUOTES:
“ClaimScore addresses a massive gap in this space that we weren’t even aware of until we met the founders of ClaimScore. 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.”
– Aaron Stafford, founding partner at ROC Venture Group
“We are incredibly excited to partner with ROC Venture Group as we continue to grow 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.”
– Bob Gallo, CEO of ClaimScore
