Avallon Secures $4.6M Seed Round to Accelerate AI-Powered Claims Automation
NEW YORK – November 21, 2025 – Avallon, an emerging provider of AI agents for insurance claims automation, today announced a $4.6 million seed funding round led by Frontline Ventures. The investment will fuel the company’s expansion and further development of its platform, designed to streamline claims processing for third-party administrators (TPAs) and insurers.
Founded earlier this year, Avallon addresses a critical pain point in the insurance industry: the inefficiencies of manual claims handling. The company’s platform enables rapid integration of AI into existing operations, promising to reduce costs, accelerate processing times, and improve customer experiences. Avallon’s technology is already gaining traction, with the company reporting tenfold revenue growth during its participation in Y Combinator’s Spring 2025 cohort and securing contracts with TPAs across the U.S. and Europe.
“Avallon’s platform has made it easy to integrate AI into our operations quickly and effectively,” says Danny Smith, VP, IT, Athens Administrators, a California-based TPA and early Avallon client. ”They’ve delivered solutions that meet our business needs and enhance customer experience.”
The founding team – comprised of Schramm,Bryan Guin,Moritz Bartusch,and Leander Peter – brings a diverse skillset spanning insurance,artificial intelligence,and enterprise technology. Prior experience includes roles at FINN, EY, Taktile, and other leading firms. Schramm and Peter previously collaborated at FINN, where they identified the challenges associated with manual claims processes firsthand.
Will Prendergast, Partner at Frontline Ventures, will join Avallon as a board observer following this funding round. The company intends to use the capital to scale its team and expand its platform’s capabilities.
