Second chances Featured

8:00pm EDT June 25, 2010
Finalist
Financial services

Growing up in Communist Bulgaria, Peter R. Kassabov dreamed of a world that would support his entrepreneurial spirit. He found that support in the United States.

Early in his career, Kassabov was crucial in the start up of several Silicon Valley companies. He grew Logistix Corp. from 300 employees to 3,500 in seven years, then founded Connextions Inc., which he grew to more than 1,000 employees.

He soon realized a need for Connextions-like analytic and predictive solutions in the health care industry. So he followed up with Connextions Health, applying predictive analytics to health care costs for insurance clients. In 2006, he sold both companies to a private equity firm so he could build Digital Risk LLC.

Kassabov’s new venture used similar technology to analyze the riskiness of loans. In 2005, he’d started going to lenders, who were receiving unverified information from borrowers that could potentially cause default. Because business was booming, lenders weren’t interested.

But when the real estate bubble popped, they all came running back. Kassabov, chairman and CEO, responded by reinventing Digital Risk to provide damage control for companies wanting to file claims against borrowers. The demand was so high that he didn’t even hold a sales presentation in 2008.

Since then, the company has reviewed about 30 percent of the country’s nonperforming loans, totaling more than $60 billion.

As the country braces for uncertainty in commercial real estate and lending regulation, Digital Risk will remain flexible in its offerings and current with its technology. Kassabov provides services that will eventually improve the economy via the financial sector, but with plans to open another location this year, he’s also contributing locally by creating jobs.

While Digital Risk is on cleanup duty now, Kassabov hopes he can eventually refocus on loan originators to help identify misrepresentations up front and prevent another collapse.

How to reach: Digital Risk LLC, (888) 500-7475 or www.digitalrisk.com