Healthcare RegTech company FraudScope has received $1.5m in a seed funding round, to help scale customer acquisition and increase product development.
Investors that committed to the round included Spider Capital, GRA Venture Fund, TechSquare Labs, Mosley Ventures, Service Provider Capital Fund and Pindrop co-founder Vijay Balasubramaniyan, among others.
Spider Capital and GRA Venture Fund were the co-leaders of the investment.
The company uses machine learning solutions to detect and stop fraud by searching for suspicious medical insurance claims.
FraudScope’s platform helps fraud analysts by automatically identifying fraud, waste and abuse trends before claims are paid.
FraudScope co-founder and CEO Musheer Ahmed said, “Healthcare fraud has become a major problem that harms individuals and health plans.
“We are thrilled to have these investors back us as we lead the fight against healthcare fraud, waste and abuse.”
Following the transaction TechSquare Labs partner Allen Nance will join the company’s board of directors.
With this latest capital, it brings the company’s total financing to around $1.9m, having received a $100,000 seed investment late last year.
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