DoNotPay
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Equity Monday: Clubhouse, UiPath and the crypto flash crash
Hello and welcome back to Equity, TechCrunch’s venture capital-focused podcast where we unpack the numbers behind the headlines.
This is Equity Monday, our weekly kickoff that tracks the latest private market news, talks about the coming week, digs into some recent funding rounds and mulls over a larger theme or narrative from the private markets. You can follow the show on Twitter here and myself here.
First, our news roundup from last week was probably the most fun I’ve had in a few months, so make sure to catch up on that if you haven’t. That said, here’s a rundown of what we got into on the show this morning:
- The new Clubhouse round has us thinking about what is a good venture-style bet, and what isn’t. At least you can’t fault the Clubhouse crew for not having conviction.
- UiPath raised its IPO range, as expected.
- There’s an Apple event this week, which caused us to wonder why more startups aren’t competing with the giant.
- Cryptos have recovered from the flash crash, which had us thinking.
- Druva raised $147 million as TechCrunch will report later today, and Razorpay raised even more capital at a newly refreshed valuation.
- Finally, DoNotPay had some news, but its corporate ethos proved even more interesting.
The week is here, everyone! It’s Monday! We can do this!
Equity drops every Monday at 7:00 a.m. PST, Wednesday, and Friday at 6:00 AM PST, so subscribe to us on Apple Podcasts, Overcast, Spotify and all the casts!
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Robot lawyer startup DoNotPay now lets you file FOIA requests
DoNotPay, the consumer advice company that started out helping people easily challenge parking tickets, has come a long way since it launched. It’s expanded to help consumers cancel memberships, claim compensation for missed flights and even sue companies for small claims. In the early days of the pandemic, the startup helped its users file for unemployment, where many state benefit sites crashed.
Now the so-called “robot lawyer” has a new trick. The startup now lets you request information from U.S. federal and state government agencies under the Freedom of Information Act.
FOIA allows anyone to request information from the government, with some exceptions. But ask anyone with experience in filing FOIAs (hello!) and they can tell you that requesting data requires skill and practice to avoid having the request thrown out for being too broad, or not being specific enough. And when you do eventually get something back, it might not be what you expect.
That’s where DoNotPay wants to help. The new feature guides you through how to file a request for information, as well as wrangle the fee waivers and option to expedite processing — which is up to you to convince the government department why you should get the information for free and faster than regular FOIA requests. (In reality, the FOIA system is massively under-resourced, and responses can take months or years to get back.) After asking you a series of questions and what you want to request, DoNotPay generates a formal FOIA request letter using your answers and files it to the government agency on your behalf.
Do Not Pay’s website. (Screenshot: TechCrunch)
DoNotPay’s founder and chief executive Joshua Browder said he’s hoping the new feature can help consumers “beat bureaucracy.”
“Hundreds of users have requested a FOIA product, because the government makes it deliberately difficult and bureaucratic to exercise these rights,” Browder told TechCrunch.
Browder said that DoNotPay “would not exist” without FOIA laws. “When we got started appealing parking tickets, we used previous requests to see the top reasons why parking tickets were dismissed,” he said. Browder said he’s hoping the feature will help consumers uncover more injustices — just like with parking tickets — to feed his product with more features. “The overall strategy is to use any interesting FOIA data to build great new DoNotPay products,” he said.
DoNotPay raised $12 million in its Series A earlier this year, led by investment firm Coatue Management, with participation from Andreessen Horowitz, Founders Fund and and Felicis Ventures. The startup has 10 employees, including Browder, and is valued at about $80 million, the company confirmed.
The FOIA filing feature is free for academics and journalists, and is included as part of the company’s subscription service of $3 per month for everyone else.
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This brilliant app waits on hold for you
DoNotPay helps you get out of parking tickets and cancel forgotten subscriptions, and now it can call you when it’s your turn in a customer service phone queue. The app today is launching “Skip Waiting On Hold.” Just type in the company you need to talk to, and DoNotPay calls for you using tricks to get a human on the line quickly. Then it calls you back and connects you to the agent so you never have to listen to that annoying hold music.
And in case the company tries to jerk you around or screw you over, the DoNotPay app lets you instantly share to social media a legal recording of the call to shame them.
Skip Waiting On Hold comes as part of the $3 per month DoNotPay suite of services designed to save people time and money by battling bureaucracy on their behalf. It can handle DMV paperwork for you, write legal letters to scare businesses out of overcharging you and it provides a credit card that automatically cancels subscriptions when your free trial ends.
“I think the world would be a lot fairer place if people had someone fighting for them” says DoNotPay’s 22-year-old founder Joshua Browder. Indeed; $3 per month gets the iOS app‘s 10,000 customers unlimited access to all the features with no extra fees or commissions on money saved. “If DoNotPay takes a commission then we have an incentive to perpetuate the problems we are fighting against.”
Browder comes from a family of activists. His father Bill Browder got the Magnitsky Act passed, which lets the U.S. government freeze the foreign assets and visas of human rights abusers. It’s named after Bill’s Russian lawyer who was murdered in Moscow after uncovering a $230 million government corruption scheme linked to President Putin’s underlings.
“These big companies [and governments] are getting away with a lot,” Browder tells me. He hit a breaking point when frustrated with the process of appealing parking tickets. He built DoNotPay to cut through hassles designed to separate us from our money. In April it raised a $3.5 million seed round led by Felicis to develop an Android version after picking up early funding from Andreessen Horowitz. Surprisingly, the startup has never been sued.
For Skip Waiting On Hold, DoNotPay built out a database of priority and VIP customer service numbers for tons of companies. For legality, if you opt in to recording the exchanges, the app automatically plays a message informing both parties they’ll be recorded. A human voice detection system hears when a real agent picks up the phone, and then rings your phone. It’s like having customer service call you.
Not only can DoNotPay help you get in touch about cancelling subscriptions, scoring refunds or retrieving information, it’s like “a body camera for customer service calls,” Browder says. “Before they make a decision that rips off the customer, they’ll think ‘this could be made public and go viral and hurt our business.’ ” For example, an airline that jacks up prices for rescheduled flights surrounding hurricanes could be shamed for profiting off of natural disasters.
The full list of DoNotPay services includes:
- Customer service disputes where it contacts companies about refunds for Comcast bills, delayed flights, etc.
- The free trial credit card that auto-cancels subscriptions before you’re actually charged
- Traffic and parking appeals where it generates a letter for you based on answers to questions, like if signs were too hard to read or there was a mistake on the ticket
- Hidden money discovery that finds refunds in your bank fees, identifies forgotten subscriptions, gets you free stuff on your birthday and more
- Government paperwork assistance that can help you get DMV appointments and fill out forms
- Skip Waiting On Hold
Browder hopes that with time, companies and governments will make all these chores easier for everyone. To avoid putting itself out of a job, DoNotPay is constantly looking for new annoyances to eliminate. “I’m from the U.K. America seems to be a pay-to-play society. The more money you have, the more rights you have,” Browder concludes. But those rights could be restored for all by building a robot lawyer that’s affordable to everyone.
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