
Checkr (YC S14) raises $9M to provide an API for background checks - alexeichemenda
http://techcrunch.com/2014/10/14/checkr-9m/
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otakucode
Given that there is already a completely free API for background checks
provided by the federal government... wait, is it because that API is
convoluted and patently insane? So is sanity their real product?

Also, the way the federal background check system works, requests have to come
from originating agencies that are set up to interface with the federal
system. Is Checkr going to interface directly, or are they going to do what
most companies do and go through a state agency? If going through a state
agency - which one? The fee that states charges varies RADICALLY... in some
states, you pay basically what the federal govt charges ($14.25). In others,
they charge upwards of $300 per transaction to just submit your data and relay
the answer.

Also, there is a new service called 'Rap Back' which enables someone who runs
a background check to sort of subscribe to a persons background... so if new
items arise, like new arrests or the like, they can be notified. Will Checkr
support that?

I don't really understand the link to 'on-demand economy'... at least at the
federal level, a background check will tell you nothing except whether the
person has been convicted of a 'serious crime' (the definition of serious
crime varies widely from state to state... in Oregon almost all traffic
violations are 'serious', while in other states nothing short of murder
qualifies). You don't get to know when or what crime or anything like that,
just "yes" or "no". Do you really want to avoid anyone who might have had a
domestic violence issue in 1972 or a speeding ticket in Oregon 20 years ago?

~~~
joshmn
More info on Rap Back: [http://www.aci-
na.org/sites/default/files/credentialing_-_ch...](http://www.aci-
na.org/sites/default/files/credentialing_-_chasity_anderson.pdf)

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joshontheweb
I feel bad for people who have made stupid mistakes in the past and are
increasingly going to be haunted by them where ever they go.

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sneak
They check against terrorist watch lists - which many people are on for secret
reasons (that have not resulted in their being charged with crimes) with no
process for dispute or appeal.

Hard to believe they aren't scum.

~~~
x0x0
where top secret reason == too much melanin

I have a friend named Omar -- american citizen, raised in america, mit
undergrad -- who is on a watch list because of his name. That's not a common
name or anything...

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calcsam
Kudos! We (Zenefits) just finished integrating with their API; the development
process was really smooth, and Jonathan and Daniel have been great to work
with.

~~~
cnaut
+1 Can also confirm the ease of development for us (Playbook HR) and the joy
of working with Jonathan and Daniel

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askbill
Accurint, TLO and the big folks already all have API's for these. The tough
part is getting access. The compliance checks are rigorous and typically it's
not worth it for them to do this for people with low volumes.

It creates a nice gap in the market for someone like Checkr. As their volume
grows, there's a great opportunity to shop around and even build your own.

In the TC article, Vince Wong mentions that the industry hasn't changed in
several decades. The whole industry has really only existed for about 20
years, thinking back to Database Technologies and AutoTrack which was a pay by
the minute dial up product into the 2000's. If he's referring to the
innovation in terms of productizing an API, it's really the risk involved
that's the challenge here.

I feel like it would be a lot easier for folks like LexisNexis and TransUnion
to sell to someone creating this market than for them to manage the compliance
that comes along with building it themselves.

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Animats
Is Checkr just front-ending the API of other background check services and
reselling them?

Intelus offers on-line background checks if you sign up as an "affiliate":
[http://www.intelius.com/affiliates.php](http://www.intelius.com/affiliates.php)

So does "backgroundchecks.com":
[http://www.backgroundchecks.com/resellers/apiproducts](http://www.backgroundchecks.com/resellers/apiproducts)

There are lots of services in the background check area. Checkr, at $25 per
name, is kind of expensive. "backgroundchecks.com" is only $15 if you buy 10
checks.

(I have an API which does background checks on web-based businesses. See

[http://www.sitetruth.com/doc/sitetruthapi.html](http://www.sitetruth.com/doc/sitetruthapi.html)

Currently free.)

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joshmn
Design of docs is straight out of 2002.

I like it.

~~~
Animats
Yeah, I really need to switch over to tiny type in light grey on dark grey,
with the examples in yellow on dark grey. And stop listing all the possible
values for enumeration value results; let users figure that out for
themselves.

~~~
joshmn
I meant the overall graphical design. And I wasn't being sarcastic.

I do however like your point.

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identityrowofsf
So serious question here. Since Checkr is providing API access what prevents
Someone having API access to run background check on my information ? Lots of
risk actually if you ask me. Socially engineering my information and using it
against me by some stupid people puts Checkr at inherent risk.

I see multi-million dollar lawsuit coming in future against Checkr.

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joshu
I invested in this round. Thus far my only investment in this YC batch.

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identityrowofsf
I see waste of $9M. There are hundereds of services running and providing
background check. What's so special of Checkr.

Here comes the start-up bubble.

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joelhaus
If they add credit history and Landlord-Tenant court, there is a big market in
the real estate rental business.

~~~
georgemcbay
"If they add credit history and Landlord-Tenant court, there is a big market
in the real estate rental business."

Also a lot of regulation due to FCRA (which I'm personally glad for,
considering the consequences of incorrect reporting).

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brianco
I'm glad the article touched on how useful this is for traditional businesses
as well.

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nnnnnn
Congrats Daniel & Jonathan!! :)

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chasb
Congrats to Daniel and the team!

~~~
dyanisse
Thanks Chas!

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taigeair
USA only?

~~~
nwenzel
Says US, Canada, and UK: [http://venturebeat.com/2014/10/14/checkr-
raises-9m-to-help-o...](http://venturebeat.com/2014/10/14/checkr-raises-9m-to-
help-on-demand-and-sharing-economy-business-with-background-checks/)

