Start-Up Company Name: Checkr
Company Web site: https://checkr.com/
Industry: AI-Powered background checks software
Introduction
Checkr is an Application Programme Interface (API) based in San Francisco. In other words, it is a background check start-up that uses artificial intelligence and machine learning, and it runs one million background checks monthly. Checkr is one of the start-ups that changed the on-demand economy in 2014 (Connie. L, 2018).
The company started when Daniel Yaniss and Jonathan Perichon are both software engineers, that worked together to deliver a faster and more efficient background check. More than 3000 businesses trust Checkr like, Instacart, Uber, Zenefits and more. The company raised money over three rounds for over $149M that $100M led by T. Rawe Price in 2019. Yassin suggests the company go public because shareholders enjoy and love extra revenue.
Potential for Growth
Chekr is one of the top 25 start-ups that have an opportunity for growth (Carson, 2016). Their products and services have created distinctive competencies for the business (Hill l al, 2015). Checkrs perspective is to attract and gain talented and professional software engineers to increase productivity. And it will increase their productivity and development as well as innovation.
Currently, they have expanded their products and services outside of the tech like it started working with the staffing Adecco and insurer Allstate. Yassin says all the consumers pay per background check, and the pricing may change in the future if the company plans to go public (Loizos, 2018). Checkr raised money in three series of A, B and C, and the first time raised $9M led by Accel Partners in series A (Lawler 2014). And in series B was funded $49M by Y Combinator Continuity (Lunden, 2016), and in series, C led $100M by T. Rawe Price in 2019 (Loizos, 2018).
Their pricing model is pay per application, and they have the entire Saas products and tools plus a new tool that aids HR managers to eliminate unaware hiring errors (Loizos, 2018). The new software tool is creating an opportunity to increase growth in sales and market share.
Likelihood of Success
There are few opportunities that Checkr can take advantage. Currently, Check is the only background check AI and machine learning software. It is fast, efficient, accurate and fair, and the new tool will have massive impacts on employing the right people. And, if the company goes public, it will increase its’ value, sustainability, and growth. But they need to focus on the correct facts and factors to avoid risks. A risk that will occur in the future is the lack of providing “silver bullet-prrof” information to the customers, whereas it is one of the most important customers’ needs. Also, expanding their products and services outside technology will increase new customers.
Having said that, if the data programme is based on male gender knowledge and language, so there is going to be much lesser opportunities to female candidates compared to males. Why?
For example, the chosen answers “words” come from a male’s mind therefore, male candidates are the most that answer the questions according and aligned. Because there are curtain words that only males apply to answer questions. Females also, unconsciously chose and apply similar/feminine words complicity different to the gents. So, this could be an unrecognised gap. This is a problem and need that most female job seeker suffer from in the 21st century.
Conclusion
From my understanding, like any other business, start-ups like Checkr has its own challenges too. For example, an Uber driver who intentionally drove into a bike path in New York six months before he got employed at Uber. Background checks are not silver bulletproof, and that is an essential issue to consider.
there are opportunities and risks, and they are vital to consider for growth. The new tool meets the customers’ needs and may gain new customers too. Thus, due to their innovation, and specific products and services, they have owned distinctive competencies that will shape their strategies, and at the end they will receive a superior profit in the long-term. Also, by going public, the company will raise profit and market share too. Therefore, Checkr have built a right strategy in which accomplished both, A) the three keys Core Competencies (Prahalad and Hamel, 1990), and B) the Dynamic Competencies.
| Appendix 1 – Business Model Canvas | |||||
| Cost Related | Revenue Related | ||||
| Key Partners-Who are the key partners? Accel partners (Lawler 2014),Y Combinator Continuity (Lunden, 2016), and T. Rawe Price in 2019 (Loizos, 2018).-Who are the key suppliers?In Application tracking, HR Systems, and Onboarding the suppliers are like Able, Avionte and more.In industry platform the suppliers are AXIS, CLD Health, CURCH COMMUNITY BUILDER and more.In video recoding the suppliers are just RIVS and Vid Cruiter.-Which key resources do the partners provide? The key partners are investment management firms and provide fund and financial support like investment strategies. Which key activities do partners perform?They provide money. | Key ActivitiesWhat key activities does the firm perform require in order to deliver the value proposition?Because of background check software is a specific product which allows them to build new tools and services. – What are the channels, customer relationships, and different revenue streams?Their channels are via online and their customer relationship is based on providing specific products and tools to sort out their problems and meet their needs. And the revenue stream is not available however the revenue was $64M in 2019 that shows massive increase in revenue. | Value PropositionsWhat value does the firm deliver to the customer? The companies that use on demand employeesTo sorts out their problems and fills their needs by background checks, like criminal records, employment and driving records. -Which customer needs is it satisfying?At present the AI-powered software allows the customers to fulfil their needs like background checks as well as providing APIs, information service, legal, software engineering and legal tech helps to fulfil customers needs. | Customer Relationships-How does the firm get, keep and grow customers?By providing unique products and services to the customers to meet their needs and sort out their problems.-Which customer relationships have it established? By leveraging their technology, they increase the level of hiring performance. Also, by providing services which is a customers’ need they keep their consumers. And by providing the new tool/product to sort out the customers problems and fulfil their needs they attract new users.How are they integrated with the rest of the business model?By creating value for the customers. How costly are they? No data is available but perhaps they are at low costs. | Customer Segments-For whom is the firm creating value? For the company and stakeholders who have interest in the business and its products and services.-Who are its most important customers?They have gained over 30000 customers round the globe. The small and big businesses that need fast, safe, and accurate Hiring background checks to sort out their problem and fulfil their needs in HR.-What are the customer archetypes? small and big businesses who need Internal Enterprise, Software Information Service, Artificial Intelligence, Developer APIs, Human Resources Software, Legal, Software Engineering, and Legal Tech to sort out their problems and fulfil the needs. | |
| Key ResourcesWhat key resources does the firm have or need to acquire?The investment management companies provide funds and investment strategies. However, they need analytical tools and strategy management like risk and opportunity management, and operation strategy management. | ChannelsThrough which channels do our customers want to be reached? Our customers want to be reached via internet.-How do other companies reach them now?Via online tools and devices.-Which ones work best?Both are the same.Which ones are most cost-efficient?Online facilities are very cost effective. | ||||
| Cost StructureWhat are the most important costs inherent in the business model? (think about fixed and variable costs). No data Which resources and key activities are most expensive? Is the business model more cost driven (helping the customer save money) or value driven? Is there an opportunity for economies of scale? Currently their customers pay per application and it has been said by Yassin, pricing will decrease and at the same time they are improving their HRM and providing new products and services to the consumers and customers therefore yes. Type here: | Revenue RelatedWhat value are the customers willing to pay for? Due to company strategy the full financial data is not accessible however the revenue is $64.7M for 2019-2020 and raised funding by $149M in three series in 2018. So, this may reflect the users are willing to pay per background check, however Yassin said the pricing model may change in the future (Loizos, 2018). What are they paying now? How do they currently pay and how would they prefer to pay? How much does each revenue stream contribute to overall revenue? How does the firm price its product or service?There are no financial stream data available however the revenue was $64.7M, the valuation was $2.2B, and total funding $309M in 2019. | ||||
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