CAMBRIDGE, MA, Gradient AI has raised $6.0 million in a Series A financing led by Forte Ventures and Sandbox Insurtech Ventures.
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Gradient AI, the leading enterprise software provider of artificial intelligence solutions in the insurance technology space, announced today that it has raised $6.0 million in a Series A financing led by Forte Ventures and Sandbox Insurtech Ventures. The round also includes participation from Gradient's existing investor MassMutual Ventures.
Gradient's artificial intelligence helps commercial insurers automate and improve underwriting results, reduce claim costs, and improve operational efficiencies. The Gradient software-as-a-service (SaaS) platform boasts a proprietary dataset comprised of tens of millions of claims, which is complemented with several economic, health, and litigation datasets. This robust aggregation of data provides out-of-the-box claims and underwriting precision for new clients, and it is continuously refined with client-specific data over time.
"The Gradient platform helps our customers' claims and underwriting teams make better decisions more efficiently, which allows our customers to write more profitable business, minimize claims, and improve the profitability of their book," said Gradient's CEO Stan Smith.
Gradient's analytics suite addresses the needs of insurance carriers, managing general agents (MGAs), professional employer organizations (PEOs), third party administrators (TPAs), insurance pools and other insurance professionals with a broad suite of claims and underwriting solutions. The artificial intelligence predictions for claims management, risk ranking, case-level reserving, medical treatment indicators, subrogation, large losses, settlement, fraud, and litigation are boosting productivity, optimizing operations, and improving decision making. Gradient's platform delivers fully automated integration into customers' own claims and underwriting platforms via API, thus enabling automated claims workflows and straight-through processing of policy applications.
"Gradient will play a critical role in progressing the widespread adoption of ML-based analytics platforms across commercial insurance over the next several years," said Tom Hawkins, founder and Managing Partner at Forte Ventures. "We're excited to be supporting the Gradient team as it catalyzes change in an industry that, at the end of the day, impacts the health and financial outcomes of millions of Americans."
"It is clear at this point that carriers, risk pools, TPAs, and PEOs that aren't implementing artificial intelligence in their claims and underwriting processes will significantly underperform relative to their peers," said Chris Zock, managing director of Sandbox Insurtech Ventures.
Aaron Shapiro, Gradient's CRO and Head of Field Operations (formerly Executive Director at Origami Risk), joined the company in December 2018. "I was impressed by the substantial and immediate ROI delivered by the Gradient platform and its ability to scale to address any size organization," noted Shapiro. "Whether a commercial insurer is looking to implement automated underwriting or deliver decision support within current underwriting workflows, Gradient's solutions enable data-driven decisions that lead to improved financial performance for our customers, as well as better treatment and outcomes for individuals."
"We are thrilled to have such a strong syndicate working with Gradient to accelerate the adoption of algorithmic claims management and underwriting across insurance verticals," said Eric Emmons, managing director at MassMutual Ventures.
About Gradient AI
Gradient AI was founded in order to address the need for state-of-the-art Artificial Intelligence (AI) solutions designed specifically for the trillion-dollar insurance industry. AI has emerged as a disruptive force revolutionizing the way insurance professionals achieve their objectives, and Gradient is leading that charge. Our solutions include software and models utilized by many of the world's most recognized insurance carriers, MGAs, TPAs, pools, PEOs and more. Gradient's stellar client base continues to grow rapidly. Gradient's team of expert data scientists and insurance technology experts have an exceptional history of building wildly successful insurance technology companies, with the most satisfied customers in the industry. At Gradient, we focus exclusively on delivering measurable results in your underwriting and claims operations. To learn more about Gradient AI, please visit: https://www.gradientai.com/.
About Forte Ventures
With offices in Atlanta and Silicon Valley, Forte Ventures is a multi-stage venture capital firm that collaborates and co-invests with corporate strategic partners in technology companies across diversified industry sectors throughout North America. Focus areas include IT, Mobility, InsurTech, FinTech, Tech-enabled Services, IoT and Industrial Technology. Investments typically range from $1 million to $3 million and include participation from leading corporate strategic partners and co-investors. For more information visit: https://www.forteventures.com
About Sandbox Insurtech Ventures
Sandbox Insurtech Ventures unites innovative insurance companies in a fund syndicate model, invests in promising technology start-ups, and drives collaboration between incumbents and insurtechs. The fund team provides a global perspective on insurance innovation and, through investments in best-in-class insurtech start-ups, provides both attractive financial returns and strategic advantages for investors. Sandbox Insurtech Ventures is part of Sandbox Industries, an established venture capital firm that manages industry-specific funds. Learn more at www.sbxinsurtech.com.
About MassMutual Ventures
MassMutual Ventures (MMV) is the corporate venture capital group of MassMutual, a Fortune 500 mutual company providing retirement, insurance, and planning services since 1851. MMV creates financial return by partnering with enterprise software and financial technology companies, and leads or joins investment syndicates in companies that are poised to create significant enterprise value through technological differentiation and focused execution. Today, MMV manages $250M with offices in Boston, London, and Singapore. Learn more at www.massmutualventures.com.