How does DiligenceSquared use AI for private equity due diligence?

DiligenceSquared employs AI voice agents to conduct interviews with customers of potential target companies, gathering crucial commercial insights.

What is the cost difference between DiligenceSquared and traditional due diligence research?

DiligenceSquared offers its analysis for $50,000, significantly less than the $500,000 to $1 million typically charged by established consulting firms.

Who are the founders of DiligenceSquared and what is their background?

DiligenceSquared was co-founded by Frederik Hansen, formerly of Blackstone, and Søren Biltoft, who has experience with BCG's private equity practice, bringing deep industry expertise.

Home / Business and Economy / AI Disrupts PE Due Diligence, Slashes Costs

AI Disrupts PE Due Diligence, Slashes Costs

6 Mar

Summary

AI startup offers consultancy-quality research at a fraction of the cost.
AI voice agents interview customers, reducing traditional research expenses.
New AI model provides analysis for $50,000, down from $500,000 to $1 million.

AI Disrupts PE Due Diligence, Slashes Costs

The conventional merger-and-acquisition process is notoriously time-consuming and costly for private equity firms, involving extensive executive meetings and financial modeling.

Traditional due diligence often requires millions spent on external advisers such as accountants, lawyers, and management consultants. Expenses for these specialists are not reimbursed if a deal fails, leading PE firms to engage them only when certainty of interest is high.

DiligenceSquared, a startup from YC's fall 2025 cohort, aims to transform this landscape. Co-founded by former private equity professionals Frederik Hansen (ex-Blackstone) and Søren Biltoft (ex-BCG), the company utilizes AI voice agents to conduct interviews with a target company's customers.

This AI-driven approach allows DiligenceSquared to deliver consultancy-quality commercial research for approximately $50,000, a drastic reduction from the $500,000 to $1 million typically charged by firms like McKinsey or BCG.

Since its launch in October, the startup has secured a $5 million seed round led by former Index Ventures partner Damir Becirovic. This funding will support their mission to make critical market insights more accessible to PE firms, enabling earlier engagement in the deal process.

DiligenceSquared competes with other disruptors in the diligence market, such as Bridgetown Research, which raised $19 million in Series A funding.

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