Shift Technology, a software-as-a-service (SaaS) platform that leans on artificial intelligence (AI) to help companies combat insurance fraud, has raised $10 million in a round led by Accel, with participation from existing investors Iris Capital and Elaia Partners.
Founded out of Paris in 2013, Shift Technology taps machine learning smarts to combat insurance fraud, using what it calls a “decision support platform” that automates the process of detecting fraud and helps humans prioritize which cases to follow up on. In addition to using big data to highlight spurious claims, Shift Technology has tools to explain the kind of fraud that’s likely involved and can point to specific facets of a claim that are worth exploring further. As with most machine-learning systems, Shift Technology’s system is designed to improve over time by tapping user feedback and additional data. The company claims to have processed more than 50 million claims for insurers around the world since it was launched in 2014.
Shift Technology is just the latest machine-learning startup to raise significant capital — back in April, Twiggle raised $12.5 million to challenge Amazon’s A9 ecommerce search engine, while X.ai nabbed $23 million to launch an AI personal assistant.
But Shift Technology also represents a growing trend around funding of fraud-detection startups. In January, Google Capital led a $75 million round into Pindrop, a company that automates the process of detecting voice fraud and identity theft. And just last month, Forter closed a $32 million round to bring automated real-time fraud-prevention technology to online retailers.
“By focusing on the specific requirements of the insurance industry, we have been able to build a unique platform that helps the industry fight fraud more efficiently,” said Jeremy Jawish, CEO and cofounder of Shift Technology. “When using Shift, companies meet their savings expectations in a few months.”
Today’s news represents Shift Technology’s first significant funding, following a $1.8 million seed round back in 2014. The company says it will use the latest cash influx to build out its technical team and double down on sales and marketing efforts.