EvolutionIQ experienced a phenomenal year of growth in 2022 and that momentum continues to accelerate. A number of factors are at play, but there’s one overriding driver: Artificial intelligence simply does an incredible job at helping sick and injured people.
That’s been our mission since founding the company three years ago: to help people regain their independence, get their lives back on track, and get back to work – saving our economy billions in the process. It’s good for patients, insurers, and society.
Insurance is one of the largest, most data-rich industries that is still underserved by advanced technology. The complexity of claims is a prime example of why that’s the case. That’s why we applied cutting-edge AI to the challenges and invented an entirely new class of software: AI-Powered Claims Guidance.
We’ve just announced our Series B funding, which brings our investor total to over $33 million and our valuation to over $200 million. In 2022, we tripled our contracted recurring revenue, expanded our customer base, tripled our engineering team, doubled our total headcount, converted every pilot into a production customer, and we’re now working with 10 of the top 15 US Disability insurers.
How is this possible for a relatively new company, with a new software category, in a down tech market, serving a very conservative industry?
The answer lies in our formula of People + Technology + Mission-Driven Customer Engagement.
2022 was possibly the most challenging labor market in tech history due to low labor participation, the great exodus, and an explosion in VC capital. Yet, we remained committed to not only doubling our headcount and maintaining growth, but doing so without compromising on quality.
We never stopped investing in our team and culture and to this day we continue to draw talent from the top 1% of tech leaders such as Amazon, Bloomberg, Meta, Google, Lyft, Palantir, Reddit, UC Berkeley, Carnegie Mellon, and more.
Unlike traditional software, Machine Learning projects are nonlinear – with the last 5% of engineering effort producing most of the value. That’s why we knew that success always hinged on attracting and retaining the industry’s best technical team.
For one product prototype, our team of Ph.D. data scientists tried more than 15 different approaches over a year and a half and only one ultimately worked. Only then did the breakthroughs happen and then continue to cascade. And we are still making major breakthroughs that continue today with substantial value being delivered.
That’s why a key factor to success in Machine Learning projects is having a true R&D group that is not only top caliber, but has the time and budget to do real R&D. And it’s why EvolutionIQ has been successful in the marketplace – and our customers have been successful in realizing dramatic results.
Our Proprietary Technology
We’ve invested $30M+ into building a completely proprietary Claims Guidance System, laser-focused on the most complex and unsolved problems. And we continue to invest as we expand the platform to new insurance lines, to international markets, and offer an array of new product capabilities every quarter.
It’s no secret in the AI world that data is the new fuel – and a key factor in our technological success continues to be our data moat. Unlike other industries using AI, insurance is unique in that it’s both incredibly data-rich, and incredibly opaque. Importantly, unlike in other industries in which AI is being applied, there are no publicly shared datasets on which to train machine learning models for insurance.
EvolutionIQ’s ability to read and understand extremely complex client data, and apply relevant external data to the mix, has uniquely positioned us to be the leader in tackling tough claims challenges. As a result, we’ve become synonymous with artificial intelligence in bodily injury insurance.
Mission-Driven Customer Engagement
Our fundamental mission to help people recover is the same one that insurers have. Ask anyone in the insurance industry, especially if they work in the claims organization, and they’ll readily tell you that dollars aren’t their focus. Job one is helping sick or injured people get on the right path and finding the optimal way to use their resources to get that done.
That’s why when we talk about the 7-10x ROI our customers realize from using our platform, the dramatic and measurable results are all in the service of fulfilling that fundamental mission we both share. Time saved via AI-powered claims guidance is time that a claims examiner or adjuster can spend with another claimant. Dollars saved from efficiencies are dollars that can be redirected to furthering the recovery mission.
We are backed by some of the strongest VC’s in the world today – First Round Capital, FirstMark Capital, Brewer Lane Ventures, and others – but we never saw VC capital as a crutch. We have been focused on revenue and profitability and the way we have done that is by delivering a product and service that the industry wants and needs – and that delivers results.
Our revenue has been so strong, that when we raised our $21M Series A in 2022 we still had our total Seed funding in our bank account. Likewise, we capped our very oversubscribed Series B to just $7M because we don’t need more financing, given the substantial revenue powering our business.
We believe that 2023 is going to be the year of artificial intelligence – you can already see it with the breakout of large language models like ChatGPT. In insurance, we see a future in which injured workers get the care they need, when they need it and are back healthy faster than ever. EvolutionIQ is already forging that future – and those with a first-mover advantage such as our company will continue to gain momentum in this environment.
We’re well-positioned to continue to capitalize on these positive trends and incredibly optimistic and excited about the future. We’re proud of the Claims Guidance System our team has built and the success we continue to see in our company, from our customers when they use our AI, and from the tens of thousands of sick or injured people we’ve helped return to work.
We’re confident 2023 will be by far our biggest growth year yet, regardless of any surprises the economy may bring.
- The Insurer: EvolutionIQ raises $7mn in Brewer Lane Ventures-led Series B round
- Benzinga: Insurance AI Leader EvolutionIQ’s Funding Total Rises to $33.1M With Series B Round While Valuation Passes $200M
- BuiltIn New York: EvolutionIQ Raises $7M to Help Sick and Injured People Return to Work
- Wall Street Journal’s Pro VC Newsletter