AI investment platform 11thEstate raises $2m to streamline investor recovery in securities fraud

AI investment platform 11thEstate raises $2m to streamline investor recovery in securities fraud

Published: 10-06-2024 12:08:00 | By: Pie Kamau | hits: 619 | Tags:

11thEstate, the first-to-market platform for investors to effortlessly receive entitlements from securities class action settlements and shareholder compensations, has announced the successful closing of a $2 million seed round. The round was led by top-tier fintech fund Social Leverage, known for backing successful fintech giants such as Robinhood, Alpaca and Stocktwits.

11thEstate was founded by Stan Vick, a 20-year investment veteran, after he lost a $1.5 million investment in a biotech stock caught up in an alleged securities fraud. "While investigating my own case, I stumbled upon a Facebook group where thousands of investors lost money in the same situation, but no one knew how to act. One of them, an 87-year-old retiree who lost his entire $110,000 life savings and was left with nothing to live on, wrote to me directly begging me to do something to get some of the money back," - explained Stan, "His story inspired me to create an easier way for regular people to recover their stock losses."

"Now, with 11thEstate, millions of investors are just one step away from the $8.1 billion that public companies settled for in 2023. However, the statistics show that up to 97% of individuals and 66% of institutional investors don't collect the settlements they are entitled to, leaving billions on the table annually. Complicated paperwork causes up to 50% of claims to be rejected, discouraging many people from filing claims at all. "Why do we automatically receive dividends, but not recoveries?"

Since its launch, 11th Estate has helped investors claim over $100 million across major cases like Apple, Google, and FTX. It has partnered with TradingView, empowering the world's largest trading social network to help its 550 million users in investment recovery. 11thEstate's AI-driven engine scans the global markets for any available investor compensation, matches it online with the users' portfolio, submits all the necessary paperwork and delivers the payout directly to the client's account.

With this investment, Matt Ober, General Partner at Social Leverage, joins the 11thEstate board, bringing a wealth of experience from his senior roles at Third Point and WorldQuant. "Social Leverage's support will help us establish a new industry standard in investment recovery. This investment fits perfectly with the focus and expertise of Social Leverage; investing in disruptive, cutting-edge, financial technology companies. The 11thEstate's mission is to democratize the access to investment recovery opportunities, providing millions of people and institutions with access to free money they are entitled to," he says.

Joining the round were Outside Ventures, a fund dedicated to elevating 100 million people into the middle class, Blank Ventures, a San Francisco fund focused on financial innovation, and notable angel investors Evan Rapoport, founder of the wealth tech platform SmartX, and Chris Camillo, founder and co-host of "I was amazed to discover $119,000 in eligible claims after meeting Stan and connecting my Schwab brokerage account to 11thEstate. It's astonishing to think how much money in claims I've potentially missed over 30+ years of investing," remarked Chris Camillo.

11thEstate is expanding beyond the direct-to-consumer offering and has begun scaling its partnerships with fund managers, advisors, broker-dealers, custodians, and financial institutions by providing a developer-friendly API that allows simple integration to its investment recovery solution.


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