This 13-page Pitch Deck landed Legal-Tech startup PainWorth $1.7 million in seed funding

Present the start-up


PainWorth


PainWorth, a personal injury claims tool, raised a $1.7 million (CA$2.1) funding round in December 2021.

Founded in 2019, the Canadian startup combs through cases and other data to help victims of personal injury calculate the value of their claims.

Early-stage venture capital fund 2048 Ventures led PainWorth’s funding round, which is the startup’s first venture funding round to date. Panache Ventures and Mistral Venture Partners, two Canadian venture capital funds, also participated in the financing.

The public version of the deck excludes details on the startup’s userbase size, milestones and revenue model.

Tell the origin story of PainWorth

PainWorth Bridge Slide


PainWorth


PainWorth co-founder Mike Zouhri came up with the idea after he was hit by a drunk driver in early 2019. Growing frustrated with a lack of clarity from personal injury lawyers, many of whom refuse to give information useful until a potential customer signs a contract that ties them to a high price, Zouhri decided to create his own tool to help determine the value of his claim.

Personal injury lawyers, who typically work on commission, can get expensive, costing plaintiffs 30-40% of the money they receive for their claim, says Bryan Saunders, director of growth and marketing at PainWorth. .

“It was a dysfunctional system that added more insult to injury,” Saunders said.

Describe the issues that current applicants face

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PainWorth


PainWorth’s main objective is to improve access to justice.

“The old way of doing things isn’t sustainable: it’s slow, adversarial, manual and expensive,” Saunders said.

Personal injury attorneys, who typically work on commission, can be expensive, costing plaintiffs 30 to 40 percent of the money they receive for their claim, Saunders said.

Costs can add up, especially since cases can be lengthy: Less than 6% of cases are resolved in less than three years, according to PainWorth. This can be debilitating for victims who need money sooner.

“The incentives are a little perverse,” Saunders said, describing how attorneys get a higher percentage reduction in the final claim value as the case progresses, while insurance companies want the smallest settlement amount. “Nobody talks about your injuries,” he said. “They talk about numbers.”

Elaborate on other questions

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PainWorth


Another issue PainWorth wants to address is the human bias involved in the claims process. For example, a lawyer might negotiate less for some clients or a judge might have an unconscious bias against women. Doctors’ reports can also be biased, as studies show that doctors tend to take women’s concerns less seriously.

Technology can help overcome these biases, Saunders says.

Present the PainWorth solution

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PainWorth


When a user files a claim on the PainWorth platform, they enter information such as when and where the accident happened, if they had to miss work, and any expenses they incurred for medical care.

Then, in just ten to 15 minutes, PainWorth’s machine learning technology will comb through information and similar personal injury cases to determine the value of the claim. PainWorth then provides the claimant, the insurance company and the attorney with all of this information.

PainWorth’s application is used for simple cases, which account for 70-80% of all personal injury cases. More complicated claims may require the expertise of an attorney, Saunders said.

Elaborate on popularity and growth

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PainWorth


The PainWorth co-founders originally built version 0.1 to help Zouhri understand his own case after his hit-and-run, kickstarting the whole project. After realizing how the tool could help other seekers as well, the co-founders asked their friends and family to hire a developer and create a more appealing version of the app.

PainWorth aims to keep its app free for accident victims. Its revenue will largely come from paid business users, such as lawyers, insurance companies and large entities that handle many claims, such as theme parks, food companies and construction companies, according to Saunders.

Explain how PainWorth will use the funding

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PainWorth


PainWorth plans to use the new capital to increase its data consumption – a crucial process as it has to update the algorithm every year to account for changes in inflation, wages and new jurisdictions.

The startup also wants to hire more marketing, development, and sales employees. It plans to launch in select US states this year and, after that, is eyeing international markets.

About Charles D. Goolsby

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