Feb 28, 2023, 09:00 ET
- With recurring revenue tripling for the 3rd consecutive year, the leader in AI-powered Claims Guidance caps its latest funding round at $7 million
- Company's value effectively doubles despite the tech sector's ongoing volatility
- Industry adoption accelerates as its AI measurably and consistently helps more sick or injured people recover and return to work vs insurers' legacy processes
NEW YORK, Feb. 28, 2023 /PRNewswire/ -- EvolutionIQ, the market-leading AI-powered Claims Guidance platform for Disability, Workers' Compensation, and Property & Casualty insurance, today announced that it completed its Series B round, raising $7M at a greater than $200M valuation. Brewer Lane Ventures led the round, with participation from all major existing investors including First Round Capital, FirstMark Capital and Foundation Capital, and joined by Principal Financial Group®, the major insurance company and existing EvolutionIQ customer.
"We dramatically increased our customer base and tripled our contracted revenue in 2022," said Tomas Vykruta, CEO and co-founder of EvolutionIQ, and former Artificial Intelligence Technical Leader at Google. "Every pilot we completed turned into a production customer and our existing customers are rapidly implementing new software modules from us. EvolutionIQ is now producing significant recurring revenue and has less need for financing, so we limited the amount raised to minimize dilution to our employee and investor shareholders."
With today's funding announcement, EvolutionIQ's valuation has now grown past $200 million — a 42 percent increase in value since its March 2022 Series A, despite the technology sector's ongoing volatility and the value of many SaaS providers being down 40+ percent. The proceeds will be used to continue to expand the company's engineering, data science, product, and customer success teams and to expand internationally. In 2022 the company more than doubled its AI team, hiring top talent from Amazon, Google, Bloomberg, Meta, and Palantir, and now has more than 100 employees.
"EvolutionIQ's impact in our industry has been profound: driving down the cost of claims and time off work for hundreds of thousands of Americans impacted by Disability or Workers Compensation related incidents," said Michael Saltzman, COO and co-founder of EvolutionIQ. "A majority of major US Disability carriers have adopted at least one of our modules, and we've delivered win-win outcomes to carriers, claimants and employers all looking to return healthy workers back to their active roles."
The AI platform directly helps more people recover and return to work – and has already led to tens of thousands of sick and injured people getting their lives back on track, with the number increasing every day. Carriers report up to a 35 percent increase in sick or injured people returning to work using EvolutionIQ. Those returns are also happening on average 3.5 months sooner when compared to the standard way insurers handle claims, which relies on a diary-based review cadence that too often results in examiners and adjusters being too early or too late to be most effective on a claim.
AI-powered Claims Guidance is an entirely new category of software invented by EvolutionIQ that actively monitors every open insurance claim to guide frontline operators to those that require more attention, new actions, or complex decision-making. It uses next-generation machine learning and natural language processing to understand complex bodily injury and recovery like a medical expert and guide examiners and adjusters daily to the right actions on the right claims at the right time to maximize impact.
"I firmly believe we are a better organization as a result of working with EvolutionIQ," said Kara Hoogensen, senior vice president of specialty benefits at Principal®. "I still remember the excitement I felt from the claims leadership after the early results came in. Principal is looking forward to a deeper relationship with EvolutionIQ as we expand across our claims operation."
"I continue to be impressed by the dramatic ROI that EvolutionIQ consistently delivers to every customer that adopts its software. Claims is now the largest domain of value creation in the sector," says John Kim, Managing Partner at Brewer Lane Ventures, and former President and Chief Investment Officer of New York Life. "The industry is at an inflection point and claims guidance software will be an absolute necessity for all insurance organizations across all major product lines in the next ten years."
EvolutionIQ is the leading provider of claims guidance software. Using advanced, proprietary machine learning and natural language processing, the claims guidance platform actively monitors complex bodily injury claims. The system combines real-time predictive accuracy, clear guidance, and explainable AI to ensure adoption and business impact. As a result, claims organizations spend their efforts on claims they can impact – and their claimants get better, more tailored service. Insurers choose EvolutionIQ to increase their profitability and control over complex lines of business by integrating decision intelligence into every step of the claims handling process. For more information, visit www.evolutioniq.com and follow the company on LinkedIn.
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