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There exist a lot of opportunities for startups to use technology to make previously high-friction experiences dealing with the bureaucracy into low-friction ex
by patio11 11y ago
There exist a lot of opportunities for startups to use technology to make previously high-friction experiences dealing with the bureaucracy into low-friction experiences to the mutual benefit of bureaucracy and its clients.
An example: substantially every state has a legal requirement that businesses which find themselves in possession of property which isn't theirs must hold it for a while (for the rightful owner) then escheat it. Escheating means "deposit with the state for safekeeping." This doesn't extinguish the original owner's interest in the property; in principle, you have a long or unbounded amount of time to ask for the property back. (You might be thinking "A lost hat" but think more "An abandoned bank account" or "The surrender value of a life insurance policy" or "A paycheck that was never deposited.")
Those processes typically take place on paper and are relatively high-friction. For example, you need to get a document notarized, provide various proofs of ID and previous address, etc etc. Some states have very simple CRUD apps which let you check the status of claims these days. Those CRUD apps could be much, much improved upon by e.g. making it more straightforward for people to find and claim their own property. (This is generally free under the laws of most states, and some less-scrupulous operators charge for essentially running a free search then presenting the results to you, but one could imagine a value-adding business here.)
- hodgesrm 11y agoAnother way to look at it is that there are many use cases (like the one you cite) that involve information asymmetry. [1] That's usually a good place to create new markets. The legal field seems rather promising in this respect as the current delivery model of $300/hour with high minimum costs is incapable of addressing basic quick-hit problems like evaluating an offer letter to help with employment negotiation. The interesting issue is not so much technology (it's basically there) but how to market to customers who only intermittently have a problem that requires your product. You have to find niche market customers who experience the asymmetry on a regular basis or you have to go through channels instead of direct sales. (Example: piggy back on LinkedIn as a channel to deliver services to assert rights under prevailing labor law.) [1] https://en.wikipedia.org/wiki/Information_asymmetry https://en.wikipedia.org/wiki/Information_asymmetry