This Startup Wants To Be DOGE For Private Sector Fraud And Waste

Business Model & Opportunity - The company aims to build a private sector "Department of Government Efficiency" to tackle government waste, fraud, and abuse [1] - The core business model is "Snitching as a Service," where the company identifies fraud against the government and receives 10-30% of recovered funds [2][4] - The Government Accountability Office estimates $500 billion (7% of the federal budget) is lost to fraud annually, representing a significant market opportunity [1] - The company believes the profit motive and free markets are effective ways to address these issues [1] Technology & Approach - The company combines investigative journalism with AI, particularly Large Language Models (LLMs), to analyze open-source intelligence and unstructured data [1][9] - LLMs are crucial for processing unstructured text data in government contracts, regulations, and laws [9] - Open-source intelligence techniques, including computer vision, are used to expedite data analysis [7] Target Verticals & Focus - The initial focus is on healthcare, which accounts for 20% of GDP [10] - Future expansion is planned for defense and education sectors [11] - The company aims to address overbilling and anti-competitive practices, particularly in the pharmaceutical industry [10][11] Competitive Advantage & Team - The company differentiates itself from SaaS companies by being paid only upon delivering measurable results in dollars [4] - The team has experience in antitrust violations and recoveries from big pharma companies [24] Journalism & Transparency - The company plans to inform the government first, but intends to publicize findings when possible [21] - The company views its model as a better business model for investigative journalism, addressing the decline of traditional newspaper funding [21][22] Risks & Challenges - The primary risk is potential failure to execute the business plan as envisioned [24]