Xclaim is a technology company.
Xclaim has raised $14.0M across 2 funding rounds.
Xclaim has raised $14.0M in total across 2 funding rounds.
Xclaim has raised $14.0M in total across 2 funding rounds.
Xclaim's investors include 2150, Breakthrough Energy Ventures, ClimacticVC, Eclipse Ventures, Felicis Ventures, First Round Capital, Founder Collective, General Catalyst, Meritech Capital Partners, Msd Capital, Next47, Planeteer Capital.
Xclaim is a legal tech startup that operates an electronic marketplace platform for buying and selling bankruptcy claims and distressed debt, streamlining trading in a traditionally inefficient $1 trillion market.[1][2][5] Founded in 2018 and headquartered in Los Angeles (with early mentions in San Francisco), it serves creditors like customers, landlords, vendors, and litigants—especially those impacted by high-profile bankruptcies such as FTX—by providing immediate liquidity, transparent pricing, and brokerage support for complex transactions.[1][2][3][4][5] The platform has facilitated over $1 billion in claims traded all-time, including $391 million in 2023, capturing 53% of online trades, with 12-20 employees and $19 million raised, including a $7 million Series A in 2023 at a $25 million pre-money valuation from investors like General Catalyst, First Round Capital, and FJ Labs.[1][2][4][5]
Xclaim solves the core problem of information asymmetry and illiquidity in bankruptcy claims, where creditors often wait years for court recoveries; instead, users track portfolios, access buyer competition, negotiate settlements, and liquidate shares quickly, reducing risk and enhancing market efficiency.[1][2]
Xclaim was founded in 2018 by Matthew Sedigh, who serves as Founder and Chairman, amid recognition of deep inefficiencies in the bankruptcy claims market, particularly highlighted by crypto bankruptcies like FTX.[1][2][3] Sedigh's background aligns with financial and legal expertise, though specifics on prior experience are not detailed in available sources; the company emerged to centralize trading for a fragmented, opaque space lacking digital tools.[2]
Early traction came from addressing crypto customer claims, listing over $200 million from FTX by early 2023, and pivoting to a fully digital marketplace that gained momentum post its Series A funding in March 2023.[1][5] Key milestones include rapid growth to $1 billion in all-time traded claims, a 0.20% weekly growth rate (93rd percentile), and awards like Built In’s Best Places to Work in 2021 for its remote-friendly culture.[1][2]
Xclaim rides the wave of fintech disruption in illiquid asset markets, capitalizing on rising bankruptcy volumes from crypto winters (e.g., FTX) and economic pressures, where traditional processes are slow and biased toward institutions.[2][5] Timing is ideal amid 2022-2023 crypto collapses, unlocking value for 10,000+ claim holders in a $1 trillion market long hindered by asymmetry—market forces like retail investor growth and demand for liquidity favor its model.[1][2][3]
It influences the ecosystem by pioneering electronic trading standards, boosting liquidity, and inspiring similar platforms in legal tech; backers like General Catalyst signal validation, while its 9.7x size multiple (89th percentile) underscores impact on startup funding dynamics.[1]
Xclaim is poised to dominate bankruptcy claims trading as economic volatility persists, potentially expanding into adjacent distressed assets or international markets with its $19M war chest for product innovation and hiring.[1][2] Trends like AI-driven pricing, blockchain for claims verification, and more crypto regulations will shape its path, amplifying network effects in a market ripe for consolidation. Its influence may evolve from niche liquidity provider to infrastructure layer, empowering smaller creditors and drawing more institutional capital—solidifying its role in efficient, transparent illiquid markets.
Xclaim has raised $14.0M across 2 funding rounds. Most recently, it raised $7.0M Series A in April 2023.
| Date | Round | Lead Investors | Other Investors |
|---|---|---|---|
| Apr 1, 2023 | $7.0M Series A | 2150, Breakthrough Energy Ventures, ClimacticVC, Eclipse Ventures, Felicis Ventures, First Round Capital, Founder Collective, General Catalyst, Meritech Capital Partners, Msd Capital, Next47, Planeteer Capital, Prelude Ventures, Salesforce Ventures, Samsung Ventures, The Westly Group, Mike Vernal, Ramez Naam, Yoav Lurie | |
| Jun 1, 2021 | $7.0M Seed | 2150, Breakthrough Energy Ventures, ClimacticVC, Eclipse Ventures, Felicis Ventures, First Round Capital, Founder Collective, General Catalyst, Meritech Capital Partners, Msd Capital, Next47, Planeteer Capital, Prelude Ventures, Salesforce Ventures, Samsung Ventures, The Westly Group, Mike Vernal, Ramez Naam, Yoav Lurie |