No one wants a dispute to end up in court – it’s expensive and time consuming but sometimes people just feel that it’s necessary. So where do you turn to resolve a disagreement without going to court? FairClaims provides the platform to have a legally binding decision made via webcam without the hassle of a formal judicial proceeding. Both sides simply upload their take on the dispute and within five days, skilled arbitrators will render a verdict in a just and fair manner. FairClaims respects your time and money and wants to make sure that petty lawsuits are not holding your business back.
LA TechWatch spoke with CEO and founder Stephen Kane about the company and its second round of funding.
Who were your investors and how much did you raise?
$1.8 Million late stage Seed round. Fika Ventures, Crosslink Capital and Greycroft Partners.
Tell us about your product or service.
FairClaims is an online dispute resolution platform designed to disrupt the inefficiencies and costs in small claims court.
We use court enforceable, binding arbitration to inexpensively resolve disputes and general customer disagreements under $10,000 via webcam hearings. We’ve also recently launched FairChat, a smart settlement chat platform that allows both parties to settle their dispute themselves.
Individuals can use our platform to submit their own claim. We also partner with enterprises and complement their internal customer experience processes with our online dispute resolution tools.
We work with arbitrators who are passionate, professional, accomplished attorneys who add significant value to FairClaims. Our arbitration selection process is very competitive. We accept less than 3% of all those who apply.
What inspired you to start the company?
Helping more individuals and businesses get access to justice and peace of mind when it comes to unresolved disputes. And injecting efficiency into a business process that’s historically been inefficient. So that everyone can benefit.
How is it different?
It’s different because it’s the first.
Many members of the public perceive the court systems as inefficient and bias. Our mission is to provide individuals with a faster, cost-effective, and fair alternative to small claims court.
Our success with our partners, i.e. Thumbtack, Turo, HomeAway, etc. coupled with the fact that consumers are responding positively to our process, reaffirms FairClaims’s huge impact in the dispute resolution space.
What market you are targeting and how big is it?
We want to help everyone and anyone with a dispute. Very difficult to say just how big but it’s very big.
What’s your business model?
We work closely with our enterprise-partner’s customer success team to not only identify their biggest pain points with customer disputes, but also foster a productive relationship throughout the partnership to continue optimizing our services, as well as contributing to the success of the companies whom we work with.
When we work with different enterprise, it normally costs $225-$275/claim depending on volume (no platform fee). Some companies pay all or part of this fee.
What the most interesting case you’ve seen brought to FairClaims?
All our cases are unique, and each provides valuable insights in the ways our team and product resolves different cases.
What was the funding process like?
A good challenge.
What are the biggest challenges that you faced while raising capital?
Efficiently explaining our long term vision.
What factors about your business led your investors to write the check?
Market opportunity, team and traction.
What are the milestones you plan to achieve in the next six months?
Build your business so you don’t need it. Seek it to grow if and when you want it.
What advice can you offer companies in Los Angeles that do not have a fresh injection of capital in the bank?
Build your business so you don’t need it. Seek it to grow if and when you want it.
Where do you see the company going now over the near term?
We want to be the most efficient most cost effective online dispute resolution platform for any type of dispute.
Where is the best place in LA to watch the sunset?
Griffith Observatory.
