DiligenceSquared uses AI, voice agents to make M&A research affordable

The merger and acquisition landscape is often riddled with challenges, primarily due to the extensive time and financial resources required. Even the most prestigious private equity firms find themselves spending significant amounts of time interacting with executives from potential acquisition targets and modeling financial forecasts. Coupled with this are the hefty fees associated with hiring external advisors—accountants, lawyers, and management consultants—whose costs are not recoverable if a deal fails. DiligenceSquared, an innovative startup emerging from Y Combinator's Fall 2025 cohort, aims to change this narrative. Leveraging advanced AI technology, the company asserts that it can deliver high-quality commercial research akin to what major consultancy firms provide, but at a fraction of the typical expense. Co-founders Frederik Hansen and Søren Biltoft bring a wealth of experience in private equity due diligence to the table. Hansen, a former principal at Blackstone, has directly commissioned extensive reports for billion-dollar acquisitions, while Biltoft has honed his skills over seven years in BCG's private equity practice, leading similar diligence initiatives. Since its launch in October, DiligenceSquared has rapidly gained traction, completing numerous projects for some of the largest private equity firms and mid-market funds, according to Hansen's statements to TechCrunch. This momentum attracted Damir Becirovic, ex-partner at Index Ventures, who led a $5 million seed funding round via his new venture capital firm, Relentless. DiligenceSquared's approach diverges from traditional methods by employing AI voice agents to conduct interviews with potential customers of the firms under consideration for acquisition. This method echoes the AI-interview frameworks utilized in consumer research companies such as Keplar and Listen Labs, which recently achieved a $500 million valuation. However, DiligenceSquared emphasizes that its due diligence processes and outcomes differ significantly from those associated with consumer research. Typically, private equity firms might allocate between $500,000 to $1 million to firms like McKinsey or Bain for in-depth interviews with corporate customers, which culminate in extensive reports. In contrast, the integration of AI allows DiligenceSquared to offer similar insights for just $50,000, making it more accessible for firms to explore opportunities earlier in the acquisition process. Hansen highlighted the transformative nature of their service: "We are making invaluable insights that were once reserved for major decisions much more attainable." As private equity firms aim to make informed decisions earlier, DiligenceSquared is leading the way in redefining the due diligence landscape. It faces competition from Bridgetown Research, which secured $19 million in Series A funding earlier this year, indicating that the drive for innovation in this sector is intensifying. Alongside Hansen and Biltoft, the team also includes Harshil Rastogi, a former engineer from Google, further solidifying their technical capabilities.