Headline: $680 million
We thought our headline would get your attention. That's how much money we project will be in our bank account at the end of Year Six (exclusive of income taxes and distributions to investors). And that's based on conservative assumptions – i.e., the actual number will most likely be a ten-figure number rather than a measly nine figures.
We are looking for a co-founder, as well as others who might be helpful in any way in making this startup successful; the latter are called “Advisors.” The Advisors could be involved in raising capital, special projects, or a variety of tasks – there are a lot of things to do! We are calling our startup “Paragon Analytics, LLC.” Our need is immediate.
Before you respond, please read our ad at https://cofoundersought.dottedi.biz/ carefully. (Dotted i is not our company, they're just hosting our ad.) Please be certain to answer all of the questions and include the questions with your answers. We will respond to everyone who writes to us (answering our questions) within 48 hours.
1. About Us
We make money by processing mass tort legal cases, such as Roundup causing non-Hodgkin lymphoma. We primarily pursue case types which are in settlement mode, thus substantially reducing risk. We have developed proprietary, world class AI and data mining techniques to identify prospects who have viable claims, and thus our Customer Acquisition Costs ("CAC") are $300 per valid case, as compared with $5,250 for a Roundup case or more than $100,000 (!) for a mesothelioma case.
Our management team includes individuals who have co-founded a successful mass tort law firm ("MTLF"); an attorney who has negotiated the settlement of numerous mass tort case types with settlements substantially in excess of what most law firms achieved; a data scientist who studied statistics and data mining as a graduate student at Harvard University; a medical coding professional with over 20 years of experience and four medical coding certifications; and an information technology professional who has spoken at national conferences and has co-authored two technical books published by Microsoft Press.
2. Mass Torts
“Mass torts” are product liability claims against pharmaceutical, medical device, and toxic substance manufacturers. We only bring claims against exceptionally large and profitable product manufacturers, and never against individuals or physicians. (When Willie Sutton was asked why he robbed banks, he replied “Because that's where the money is.”)
We focus primarily on case types that are in “settlement mode” – i.e., the defendant/manufacturer has suffered so many adverse verdicts that it has decided to throw in the towel and has set aside several billion dollars – or in the case of Monsanto, more than $10 billion – to settle those claims. Currently we are pursuing five case types: NEC Infant formula, mesothelioma, Roundup, hernia mesh, and sexual abuse cases.
3. Our Business Strategy
There are three elements to our business strategy:
- "Come Late to the Party" – In most cases, we do not acquire cases in a given case type until the manufacturer has decided to settle.
- Sign up a Diversified Portfolio of Case Types – We diversify the case types we sign up cases for.
- Utilize a Vastly Superior Method of Generating Cases – Many MTLFs have lost money by choosing lead brokers who delivered bad leads. As noted in Section 5, we have several methods of determining up front if a case is valid, so we do not have this problem.
4. The Attraction of Mass Torts
We are attracted to the mass tort business for several reasons:
- The business is quite lucrative. Done the conventional way – i.e., obtaining cases through traditional marketing channels – operating margins exceed 80 percent.
- With our AI and data mining techniques (see Section 5), our operating margins exceed 95 percent. (!)
- Remarkably little law is involved in processing mass tort settlements. The fewer lawyers we have working for us, the happier we are – attorneys are expensive and they're a pain in the neck to manage. To us, the best law firm has no lawyers.
- Processing mass tort cases for settlement lends itself to systemization of processes and computerization, something we are quite good at.
- After a prospect has signed a Client Engagement Agreement, we can turn the case over to a legal process outsourcing (‘LPO”) firm which will process the case through settlement and collection and disbursement of funds. Such firms are willing to defer their fees until the case turns into money.
- If we follow the three key business strategies listed in Section 3, the risk is exceptionally low relative to return.
5. AI and Data Mining Techniques
We have discovered and developed proprietary, highly effective AI and data mining technologies to generate high value mass torts legal cases from various databases. Except for our captive law firms, MTLFs spend several thousands of dollars to obtain a valid case – e.g., Roundup cases cost approximately $5,250, and mesothelioma cases cost in excess of $100,000. Many of the cases acquired are of low value, in that the bodily harm suffered by the injured party is insignificant. This leads to a low settlement, since settlement values are to a substantial extent ae based on the severity of the injury. We can focus solely on obtaining high value cases, such as permanent disability and wrongful death.
These data mining techniques have been used for more than 25 years for a completely different purpose, and thus we know the technology works. Paragon is simply using these techniques for a different purpose, namely, to obtain mass tort clients. Our techniques comply with all federal and state medical data privacy laws, including HIPPA. There is no other company in the world that is able to generate on a consistent basis mass tort clients using any AI or data mining technology.
Our techniques allow us to reach prospects who will not respond to other marketing channels, such as television and Facebook ads. Anecdotal evidence for historical case types (which have been settled years ago and thus are no longer valid claims) indicate that six out of seven people who could file a claim (i.e., they meet all of the settlement criteria which were negotiated with the defendant/manufacturer) do not in fact do so. Our outbound telemarketing allows us to reach those 86 percent that will never respond to any advertising, no matter how many tens of millions of dollars in advertising are spent by MTLFs.
Here is an analogy we use. Imagine there are two bodies of water: a small pond and an ocean larger than the Pacific. In the pond there are hundreds of fishing boats (law firms looking for mass tort clients) and as a result, the pond is overfished (it’s difficult to find valid mass tort cases). As for the ocean, there is only one fishing boat (our law firm) and there are zillions of fish, each one of which can be caught at almost no cost.
Once the data are obtained and written to a Salesforce CRM system, we have several proprietary AI techniques to enhance the effectiveness of the data and to identify the most viable prospects.
6. We Are Not in a Race Against Time
This is hugely important. In most tech startups, you're competing against ten other groups, each with a management team comprised of exceptionally intelligent and aggressive founders and executives, backed by a very good VC firm. The winning firm will make billions, number two will do well, number 3 will be acquired by no. 1 or 2, number 4 and 5 will be acquihires, and the rest will be roadkill. We don't like those odds.
Except for our startup, there is no one using AI and data mining to find mass tort legal cases. We are not in a race against time. If things take six months longer than we have projected – things often do – it does not matter. Mass torts are not going to do away, major corporations will continue to make products that harm people, and collectively they will pay out close to $100 billion in settlement each and every year for the foreseeable future.
If a competitor emerges, that's fine, there's more than enough money to go around. This is not a winner takes all market. (The easiest way to understand why is that we are not developing advanced technology to sell to customers, but rather advanced technology to use internally – i.e., to generate our own legal cases. The last thing we want to do is provide our technology to our competitors.)
7. Job Responsibilities
As a co-founder, these are some of the things that need to be done. What you would do would depend to a significant extent on what you are good at and what you enjoy doing. If you are a prospective Advisor, you’re free to propose any tasks you want.
- Raising capital
- Recruiting
- Interviewing and negotiating with legal process outsourcing firms
- Assisting in setting up outbound telemarketing call centers – everything from renting the office, choosing the IT systems integration firm and Cisco dealer, and choosing which sales training program to use (such as Sandler Solutions, Richardson Sales Performance, or Sales OS)
- Interviewing and choosing a CPA firm to prepare our certified financial statements
- Office space – Interviewing commercial real estate brokers, looking at office space, negotiating with the landlord, interviewing space planners, negotiating with office furniture dealers
- Applying for leases to finance the acquisition of computers, telephones, copiers, office furniture
- Interviewing and negotiating with plaintiff financing firms such as Oasis Financial to provide pre-approval for cash advances should our clients want such financial assistance
If nothing else, as the co-founder you will have lots of variety!
If you might be interested, please read out full ad at https://cofoundersought.dottedi.biz/.
