Losing $1.5 million is a pretty good motivator to try to effect change and one man hopes to do that with a first-to-market platform to ensure investors get what they are entitled to.
A veteran investor with 20 years of experience, Stan Vick backed a biotech firm that was caught up in an alleged securities fraud, losing him the seven-figure fortune. Online research led him to a Facebook group with many other investors in similar situations, but no idea what to do next. They included an 87-year-old retiree who had lost his $110,000 life savings.
"His story inspired me to create an easier way for regular people to recover their stock losses,” Vick said.
He launched 11th Estate and has recently secured $2 million in seed round funding from investors including fintech fund Social Leverage, known for backing successful fintech giants such as Robinhood, Alpaca, and Stocktwits.
"This investment fits perfectly with the focus and expertise of Social Leverage; investing in disruptive, cutting-edge, financial technology companies,” said Social Leverage general partner Matt Ober, who joins the board at 11th Estate. “The 11th Estate'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.”
Vick says that public companies settled suits amounting to $8 billion in 2023, but that up to 97% of individuals and 66% of institutional investors don’t get what they are entitled to, with 50% of claims rejected by complex paperwork requirements that deters many from even trying to claim.
"Why do we automatically receive dividends, but not recoveries?,” Vick said.
11th Estate uses AI to scan global markets for investor settlement reports, matches them up with investor portfolios, files the documents, and ensures entitlements are paid directly into clients’ accounts.
The platform has partnered with trading social network TradingView and says it has already helped investors claim more than $100 million associated with major cases including Apple, Google, and FTX.
Rajesh Markan earlier this year pleaded guilty to one count of criminal fraud related to his sale of fake investments to 10 clients totaling $2.9 million.
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