Regional Compliance Solutions

Jeremy proposes building software that handles regulatory compliance requirements, specifically targeting different countries and regions. This type of business leverages increasing regulation and the critical need for companies to stay compliant.

Key Points:

• Business Characteristics:

  • Mission-critical software that companies need to avoid fines or jail time
  • Low lift to maintain once working
  • High downside risk for clients if they don't use it
  • Relatively AI-resistant due to high stakes of compliance

• Market Opportunity:

  • Every western country has different rules and regulations
  • Multiple versions can exist within each market
  • Regulations only increase over time, never decrease
  • Can front-run new regulations to be first provider

• Example Applications:

  • Banking regulation software
  • House buying compliance
  • Tenant vetting
  • KYC (Know Your Customer) and AML (Anti-Money Laundering)
  • Driver's license verification for car rentals

• Business Advantages:

  • Customers unlikely to switch once implemented
  • Mission-critical but relatively cheap
  • High customer retention
  • Can be first mover by watching upcoming regulations

• Geographic Expansion:

  • Each country needs its own version
  • Different rules create natural market segmentation
  • Opportunity to replicate successful compliance software across regions