from Hacker News

Checkr (YC S14) raises $9M to provide an API for background checks

by alexeichemenda on 10/14/14, 5:17 PM with 25 comments

  • by otakucode on 10/14/14, 6:09 PM

    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?

  • by joshontheweb on 10/14/14, 6:41 PM

    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.

  • by sneak on 10/14/14, 6:03 PM

    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.

  • by calcsam on 10/14/14, 6:06 PM

    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.

  • by askbill on 10/14/14, 6:59 PM

    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.

  • by Animats on 10/14/14, 6:13 PM

    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

    So does "backgroundchecks.com": 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

    Currently free.)

  • by identityrowofsf on 10/15/14, 12:06 AM

    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.

  • by joshu on 10/14/14, 11:51 PM

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

  • by identityrowofsf on 10/15/14, 12:09 AM

    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.

  • by joelhaus on 10/14/14, 6:02 PM

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

  • by brianco on 10/14/14, 6:16 PM

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

  • by nnnnnn on 10/14/14, 11:09 PM

    Congrats Daniel & Jonathan!! :)

  • by chasb on 10/14/14, 5:35 PM

    Congrats to Daniel and the team!

  • by taigeair on 10/14/14, 6:38 PM

    USA only?