The Journey to Starting KarmaCheck and the Evolution of Background Checks

In a conversation with Becca and Dom on Found, Eric Ly shares his insights on starting KarmaCheck, an AI-driven technology company that aims to make background checks easier. With decades of experience under his belt, including co-founding LinkedIn as its founding CTO, Ly offers valuable lessons for entrepreneurs and startup enthusiasts.

From IBM Intern to Co-Founder of LinkedIn

Ly’s career began as an engineering intern at IBM, where he spent 20 years before moving on to start several companies. His journey eventually led him to co-found LinkedIn, a platform that has revolutionized the way people connect with each other professionally. As the company’s founding CTO, Ly played a crucial role in shaping its early success.

The Evolution of Background Checks

Background checks have traditionally been a manual process, requiring individuals to fill out forms and provide physical records. However, with the advent of technology, much of this process has been automated. Ly emphasizes the importance of speed in hiring effectively, saying, "It’s really important for them to be able to hire quickly." He notes that speed is now a currency for companies looking to hire efficiently.

The Changing Landscape of Technology and Venture Capital

Ly reflects on the significant changes he has witnessed over the years. In his early days at LinkedIn, people did not have online identities, and the concept of social media was still in its infancy. Even back then, Ly could not have predicted the world as it is today.

He also highlights how the role of CTOs has evolved with technology advancements, making them more integral to a company’s success. Furthermore, the process of raising venture capital has become increasingly globalized, with investors no longer limited to specific regions or industries.

The Globalization of Venture Capital

When Ly co-founded LinkedIn 20 years ago, the investor industry was relatively small and localized. He recalls that it was almost necessary to live in the Bay Area to engage with potential investors. However, over the past two decades, venture capital has become a global phenomenon.

"VC has really become a global phenomenon," he states. This shift has made it easier for startups to access funding from around the world, creating new opportunities for entrepreneurs and innovators.

The Underlying Problem: Connecting People

Ly’s experiences with various companies have led him to identify an underlying problem: how people connect with each other and establish trust. He notes that this issue is not unique to any one industry or field but is a fundamental challenge in building relationships.

"I realized that in each of these instances, there was this kind of underlying problem around how people are able to connect with each other and how do they establish a basis of trusting each other, such that more interesting interactions can occur?" he shares.

The Addiction of Starting Companies

Starting companies has become an all-consuming passion for Ly. He credits his father, who was also an entrepreneur in the civil engineering construction business, for instilling this entrepreneurial spirit in him from an early age.

"Even my dad was an entrepreneur," Ly notes. "He had started his own companies in the civil engineering construction business and it became very successful."

Scaling KarmaCheck

Ly’s latest venture, KarmaCheck, aims to leverage AI-driven technology to simplify background checks. He shares his plans for scaling the company and tackling the challenges that come with growth.

Tune in to our conversation with Ly to learn more about the lessons he has learned over the years as an entrepreneur and what his future holds for KarmaCheck.

Lessons Learned from Decades in the Industry

Throughout his career, Ly has gained valuable insights that can be applied to various aspects of entrepreneurship. Here are some key takeaways:

  • Speed is now a currency for companies looking to hire effectively.
  • The role of CTOs has evolved significantly with technology advancements.
  • Venture capital has become increasingly globalized, making it easier for startups to access funding from around the world.
  • Establishing trust and connections between people is an underlying problem in building relationships.

By following Ly’s entrepreneurial journey and learning from his experiences, startup enthusiasts can gain valuable insights into what it takes to succeed in the ever-changing landscape of technology and innovation.