Number of employees: 1-5
Investors: Kfir Gavrieli, Dan Murillo, Billy Ku
ArbiClaims is an online dispute resolution platform. We use court enforceable, binding arbitration to resolve disputes under $10,000. From filing to collection. All for $79-159/party. Typically within 3-4 weeks.
Go to market - enterprise + partnerships. Enterprise is currently focused on sharing economy marketplaces but expanding to old school companies. We will raise the dollar amounts of disputes we handle, i.e. to $25,000 as we prove out our model. Also working on getting small businesses and individuals to put our arbitration clauses in their agreements, through our partners and content marketing. Making our customer acquisition cost and conversion rates(getting people to the table) very high.
Customers include a major professional services marketplace, Turo and Spinlister. Partners include Better Business Bureau, US Legal and HomeAway. We also resolve disputes for individuals and small businesses.
A claimant can file an initial claim in about 3-4 minutes. We do the rest. If/when the respondent accepts (and we have various strategies for making that work), we invite them each to choose an arbitrator, submit evidence and participate in a 10-30 minute webcam or phone hearing. A decision's handed down within 5 days of the hearing.
We have a lot of built in path dependence with our arbitration clauses and predictive analytics around settlement for example. Proprietary technology around our settlement engine, arbitration matching algorithm and other areas. Seeing a lot of success as well with bringing consumers into the funnel and working on proving that out.
ArbiClaims was started by a small business and start up attorney tired of not being able to help people resolve their small claim disputes. Knowing that they didn't want to bother with small claims court. And in an effort to help fix that broken system.
We'll be exploring several business models. For now we charge each party a fee for the basic arbitration service based on the claim amount. Or a flat fee for enterprise customers which varies slightly with volume ($275 - $225/claim), no additional platform fee (want to make it easy to onboard them).
We have several other revenue sources including referral fees for other legal services, loan origination fees, case organization assistance fees etc.
We also want to experiment with taking a % cut of the awards. But this is tricky since we don't want to appear to have any bad incentives. We think our settlement engine could be a good opportunity to do this. And also want to play around with freemium for settlements, with consumer and enterprise.
We have a few competitive advantages - (1) we have a human touch and online video arbitrations which many of our competitors do not have (they do it via email for example - each side uploads evidence and gets a decision)... we think people feeling heard is half the battle to resolution and respecting the decision (2) we're investing in a proprietary settlement engine which works 50% of the time (of when people express interest in a settlement) and (3) we're investing in an arbitrator matching algorithm.